Vol. 83 Thursday, No. 22 February 1, 2018

Pages 4575–4830

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 83, No. 22

Thursday, February 1, 2018

Agriculture Department Community Living Administration See Animal and Plant Health Inspection Service NOTICES See Commodity Credit Corporation Agency Information Collection Activities; Proposals, See Food Safety and Inspection Service Submissions, and Approvals: NOTICES Evidence-Based Falls Prevention Program, 4659–4660 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 4630–4631 Consumer Product Safety Commission RULES Animal and Plant Health Inspection Service Acceptance of Third Party Laboratories: NOTICES Revision to the Notice of Requirements for Prohibitions Agency Information Collection Activities; Proposals, of Children’s Toys and Child Care Articles Submissions, and Approvals: Containing Specified Phthalates, 4578–4580 Trichinae Certification Program, 4631 Corporation for National and Community Service Centers for Disease Control and Prevention NOTICES NOTICES Agency Information Collection Activities; Proposals, Charter Amendments: Submissions, and Approvals: Advisory Committee on Immunization Practices; Application Package for the Day of Service Project Correction, 4657 Collection Tool, 4644–4645

Children and Families Administration Defense Department NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals, 4657–4658 Submissions, and Approvals, 4645–4646

Coast Guard Drug Enforcement Administration RULES RULES Drawbridge Operations: Schedules of Controlled Substances: New Jersey Intracoastal Waterway, Beach Thorofare, Temporary Placement of Seven Fentanyl-related Margate City, NJ, 4585 Substances in Schedule I, 4580–4585 NOTICES Bulk Manufacturers of Controlled Substances; Registrations: Commerce Department Euticals, Inc, Cerilliant Corp., Cambrex Charles City, 4685 See First Responder Network Authority Importers of Controlled Substances; Registrations: See International Trade Administration ABBVIE, Ltd. and VHG Labs DBA LGC, 4685–4686 See National Oceanic and Atmospheric Administration Education Department Commodity Credit Corporation NOTICES NOTICES Applications for New Awards: Funds Availability: Indian Education Formula Grants to Local Educational Cancellation of the Farm-to-Fleet Feedstock Program Agencies, 4646–4650 Biofuel Production Incentive, 4631–4632 Energy Department Commodity Futures Trading Commission See Federal Energy Regulatory Commission NOTICES Meetings: Environmental Protection Agency Technology Advisory Committee, 4643–4644 RULES Air Quality State Implementation Plans; Approvals and Community Development Financial Institutions Fund Promulgations: NOTICES Illinois; Nonattainment Plans for the Lemont and Pekin Funding Availability: SO2 Nonattainment Areas, 4591–4595 Applications for Financial Assistance Awards or Indiana; Infrastructure SIP Requirements for the 2012 Technical Assistance Grants under the Native PM2.5 NAAQS, 4595–4597 American CDFI Assistance Fiscal Year 2018 Funding Montana; Second 10-Year Carbon Monoxide Maintenance Round, 4729–4750 Plan for Missoula, 4597–4598 Funding Opportunities: Consolidated Rules of Practice Governing the Financial Assistance awards or Technical Assistance Administrative Assessment of Civil Penalties, Issuance grants under the Community Development Financial of Compliance or Corrective Action Orders, and the Institutions Program fiscal year 2018 Funding Round, Revocation/Termination or Suspension of Permits; 4750–4770 Procedures for Decisionmaking; Correction, 4598–4600

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PROPOSED RULES Federal Communications Commission Air Quality State Implementation Plans; Approvals and RULES Promulgations: Annual Adjustment of Civil Monetary Penalties to Reflect Colorado; Revisions to the Transportation Conformity Inflation, 4600–4601 Consultation Process, 4614–4617 NOTICES Louisiana; Interstate Transport Requirements for the 2012 Meetings, 4656–4657 PM2.5 NAAQS, 4617–4620 Maryland; Control of Emissions from Existing Federal Election Commission Commercial and Industrial Solid Waste Incinerator NOTICES Units, 4621–4622 Meetings; Sunshine Act, 4657 Repeal of Carbon Pollution Emission Guidelines for Existing Stationary Sources: Federal Emergency Management Agency Electric Utility Generating Units; Three Public Listening NOTICES Sessions, 4620–4621 Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Amendments to Terminate Uses for Certain Pesticide Survivor Sheltering Assessment, 4670 Registrations: Dicloran, 4651–4653 Federal Energy Regulatory Commission Charter Renewals: NOTICES Farm, Ranch, and Rural Communities Advisory Filings, 4650 Committee, 4651 Initial Market-Based Rate Filings Including Requests for Clean Air Act Operating Permit Program: Blanket Section 204 Authorizations: Petition for Objection to Proposed Permit for Alon USA— CA Flats Solar 150, LLC, 4651 Bakersfield Refinery, San Joaquin Valley Unified Air Pollution Control District, 4655 Federal Maritime Commission Petitions for Objection to Proposed Permits for Linn NOTICES Operating, Inc.—Fairfield Lease and Ethyl D Lease, Petitions for Rulemaking: San Joaquin Valley Unified Air Pollution Control Coalition for Fair Port Practices, 4657 District, 4653 Meetings: Federal Railroad Administration Science Advisory Board Chemical Assessment Advisory NOTICES Committee Augmented for the Review of EPA’s draft Petitions for Waivers of Compliance, 4726–4729 Ethyl Tertiary Butyl Ether and tert-Butyl Alcohol (tert-butanol; tBA) Assessments; Teleconference, First Responder Network Authority 4654–4655 NOTICES Proposed CERCLA Cost Recovery Settlement: Revised National Environmental Policy Act Procedures and Facet Enterprises, Inc. Superfund Site, Elmira Heights, Categorical Exclusions, 4632–4636 Chemung County, NY, 4653–4654 Fish and Wildlife Service Farm Credit Administration PROPOSED RULES NOTICES Migratory Bird Subsistence Harvest: Meetings; Sunshine Act, 4655–4656 Alaska; Harvest Regulations for Migratory Birds in Alaska During the 2018 Season, 4623–4629 NOTICES Federal Aviation Administration Agency Information Collection Activities; Proposals, RULES Submissions, and Approvals: Class E Airspace; Amendments: Federal Migratory Bird Hunting and Conservation Stamp Carrabassett, ME, 4577–4578 and Junior Duck Stamp Contests, 4671–4674 Special Conditions: Endangered and Threatened Wildlife: Gulfstream Aerospace Corporation Model GVII–G500 Incidental Take Permit Application, Habitat Conservation Airplanes; Operation without Normal Electrical Plan for Skink Species, and Environmental Power, 4575–4577 Assessment for Roadway Relocation in Polk County, PROPOSED RULES FL, 4674–4675 Airworthiness Directives: Rolls-Royce Corporation Turboshaft Engines, 4609–4610 Food and Drug Administration Textron Aviation Inc. Airplanes, 4605–4609 NOTICES Class D and E Airspace, and Amendment of Class E Determinations of Regulatory Review Periods for Purposes Airspace; Establishments: of Patent Extensions: Austin, TX, 4613–4614 CORLANOR, 4661–4663 Class D and E Airspace; Revocation of Class E Airspace; Meetings: Amendments: Best Practices in Modeling and Simulation for Oncology Kansas City, MO, 4611–4612 Products; Public Workshop, 4660–4661 NOTICES Changes in Use of Aeronautical Properties: Food Safety and Inspection Service Los Angeles International Airport, Los Angeles, CA, PROPOSED RULES 4725–4726 Modernization of Swine Slaughter Inspection, 4780–4823

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Foreign Assets Control Office Land Management Bureau NOTICES NOTICES Blocking or Unblocking of Persons and Properties, 4770– Plats of Survey: 4772 Montana, 4675 Proposed Class II Reinstatements: Health and Human Services Department Terminated Oil and Gas Lease UTU77328, Utah, 4675– See Centers for Disease Control and Prevention 4676 See Children and Families Administration Legal Services Corporation See Community Living Administration See Food and Drug Administration PROPOSED RULES See Health Resources and Services Administration Requests for Documents and Testimony, 4827–4829 See National Institutes of Health State Advisory Councils, 4826–4827 See Substance Abuse and Mental Health Services National Institutes of Health Administration NOTICES Meetings: Health Resources and Services Administration Center for Scientific Review, 4665–4668 NOTICES National Institute of Allergy and Infectious Diseases, National Vaccine Injury Compensation Program Petitions, 4665 4663–4665 National Institute of Environmental Health Sciences, 4665–4666 Homeland Security Department National Institute on Aging, 4665 See Coast Guard See Federal Emergency Management Agency National Oceanic and Atmospheric Administration NOTICES RULES Agency Information Collection Activities; Proposals, Fisheries of the Northeastern United States: Submissions, and Approvals: Black Sea Bass Fishery; 2018 February Recreational Private Sector Clearance Program, Cooperative Research Season Modification, 4601–4604 and Development Agreement, and Classified Critical NOTICES Infrastructure Protection Program Request, 4670– Fisheries of the South Atlantic: 4671 Southeast Data, Assessment, and Review; Stock ID Data Scoping Webinar for Atlantic Cobia (Rachycentron canadum), 4643 Interior Department See Fish and Wildlife Service National Science Foundation See Land Management Bureau NOTICES Agency Information Collection Activities; Proposals, International Trade Administration Submissions, and Approvals, 4686–4687 NOTICES Antidumping or Countervailing Duty Investigations, Orders, Occupational Safety and Health Review Commission or Reviews: NOTICES Advance Notification of Sunset Reviews, 4636–4637 Senior Executive Service Performance Review Board Certain Cold-Drawn Mechanical Tubing of Carbon and Membership, 4687 Alloy Steel from the People’s Republic of China and India, 4637–4639 Postal Regulatory Commission Initiation of Five-Year (Sunset) Reviews, 4641–4642 RULES Opportunity to Request Administrative Review, 4639– Mail Preparation Changes, 4585–4591 4641 Securities and Exchange Commission NOTICES International Trade Commission Registration Cancellations: NOTICES Certain Investment Advisers Pursuant to the Investment Antidumping or Countervailing Duty Investigations, Orders, Advisors Act, 4716–4718 or Reviews: Self-Regulatory Organizations; Proposed Rule Changes: Cast Iron Soil Pipe from China, 4684–4685 Bats BZX Exchange, Inc., 4707–4715 Certain Activated Carbon from China, 4681–4684 Fixed Income Clearing Corp., 4687–4704 Investigations; Determinations, Modifications, and Rulings, NYSE, Arca, Inc., 4704–4707, 4718–4720 etc.: The Nasdaq Stock Market, LLC, 4715–4716 Folding Gift Boxes from China; Institution of a Five-Year Review, 4679–4681 Small Business Administration Fresh Tomatoes from Mexico; Institution of a Five-Year NOTICES Review, 4676–4679 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 4720–4721 Justice Department See Drug Enforcement Administration Social Security Administration NOTICES NOTICES Proposed Consent Decrees: Agency Information Collection Activities; Proposals, Clean Air Act, 4686 Submissions, and Approvals, 4722–4725

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Privacy Act; Matching Programs, 4721–4722 Funding Availability: Loan Guaranty—Specially Adapted Housing Assistive Substance Abuse and Mental Health Services Technology Grant Program, 4774–4778 Administration Requests for Information: Program of Comprehensive Assistance for Family NOTICES Caregivers: Correction, 4772–4773 Certified Laboratories and Instrumented Initial Testing Requests for Nominations: Facilities: Advisory Committee on Cemeteries and Memorials, List of Facilities that Meet Minimum Standards to Engage Amended, 4773–4774 in Urine Drug Testing for Federal Agencies, 4668– 4669 Meetings: Advisory Committee for Women’s Services, 4668 Separate Parts In This Issue

Surface Transportation Board Part II NOTICES Agriculture Department, Food Safety and Inspection Productivity Adjustments: Service, 4780–4823 Railroad Cost Recovery Procedures, 4725 Transportation Department Part III See Federal Aviation Administration Legal Services Corporation, 4826–4829 See Federal Railroad Administration

Treasury Department Reader Aids See Community Development Financial Institutions Fund Consult the Reader Aids section at the end of this issue for See Foreign Assets Control Office phone numbers, online resources, finding aids, and notice Veterans Affairs Department of recently enacted public laws. NOTICES To subscribe to the Federal Register Table of Contents Agency Information Collection Activities; Proposals, electronic mailing list, go to https://public.govdelivery.com/ Submissions, and Approvals: accounts/USGPOOFR/subscriber/new, enter your e-mail Application for Service-Disabled Veterans Insurance, address, then follow the instructions to join, leave, or 4774 manage your subscription.

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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.

9 CFR Proposed Rules: 301...... 4780 309...... 4780 310...... 4780 14 CFR 25...... 4575 71...... 4577 Proposed Rules: 39 (2 documents) ....4605, 4609 71 (2 documents) ....4611, 4613 16 CFR 1112...... 4578 21 CFR 1308...... 4580 33 CFR 117...... 4585 39 CFR 3010...... 4585 40 CFR 52 (3 documents) ...4591, 4595, 4597 124...... 4598 Proposed Rules: 52 (2 documents) ....4614, 4617 60...... 4620 62...... 4621 45 CFR Proposed Rules: 1603 (2 documents) ...... 4826, 4827 47 CFR 1...... 4600 50 CFR 648...... 4601 Proposed Rules: 92...... 4623

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Rules and Regulations Federal Register Vol. 83, No. 22

Thursday, February 1, 2018

This section of the FEDERAL REGISTER Transportation (DOT), 1200 New Jersey Comments Invited contains regulatory documents having general Avenue SE, Room W12–140, West We invite interested people to take applicability and legal effect, most of which Building Ground Floor, Washington, DC are keyed to and codified in the Code of part in this rulemaking by sending 20590–0001. written comments, data, or views. The Federal Regulations, which is published under • 50 titles pursuant to 44 U.S.C. 1510. Hand Delivery or Courier: Take most helpful comments reference a comments to Docket Operations in specific portion of the special The Code of Federal Regulations is sold by Room W12–140 of the West Building conditions, explain the reason for any the Superintendent of Documents. Ground Floor at 1200 New Jersey recommended change, and include Avenue SE, Washington, DC, between 9 supporting data. a.m. and 5 p.m., Monday through DEPARTMENT OF TRANSPORTATION We will consider all comments we Friday, except Federal holidays. receive by the closing date for • Federal Aviation Administration Fax: Fax comments to Docket comments. We may change these special Operations at 202–493–2251. conditions based on the comments we 14 CFR Part 25 Privacy: The FAA will post all receive. comments it receives, without change, Background [Docket No. FAA–2015–7290; Special to http://www.regulations.gov/, Conditions No. 25–715–SC] including any personal information the On March 29, 2012, Gulfstream Special Conditions: Gulfstream commenter provides. Using the search applied for a type certificate for their Aerospace Corporation Model GVII– function of the docket website, anyone new Model GVII–G500 airplane. This G500 Airplanes; Operation Without can find and read the electronic form of transport-category, twin-engine airplane Normal Electrical Power all comments received into any FAA will be a business jet capable of docket, including the name of the accommodating up to 19 passengers. AGENCY: Federal Aviation individual sending the comment (or The maximum takeoff weight is 91,000 Administration (FAA), DOT. signing the comment for an association, lbs. ACTION: Final special conditions; request business, labor union, etc.). DOT’s Type Certification Basis for comments. complete Privacy Act Statement can be found in the Federal Register published Under Title 14, Code of Federal SUMMARY: These special conditions are on April 11, 2000 (65 FR 19477–19478), Regulations (14 CFR) 21.17, Gulfstream issued for the Gulfstream Aerospace as well as at http://DocketsInfo.dot. must show that the Model GVII–G500 Corporation (Gulfstream) Model GVII– gov/. airplane meets the applicable provisions G500 airplane. This airplane will have Docket: Background documents or of 14 CFR part 25, as amended by a novel or unusual design feature when comments received may be read at Amendments 25–1 through 25–129. compared to the state of technology http://www.regulations.gov/ at any time. If the Administrator finds that the envisioned in the airworthiness Follow the online instructions for applicable airworthiness regulations standards for transport-category accessing the docket or go to Docket (i.e., part 25) do not contain adequate or airplanes. This design feature is an Operations in Room W12–140 of the appropriate safety standards for the electronic flight-control system, the West Building Ground Floor at 1200 Model GVII–G500 airplane because of a functions of which are dependent upon New Jersey Avenue SE, Washington, novel or unusual design feature, special the airplane’s electrical power DC, between 9 a.m. and 5 p.m., Monday conditions are prescribed under the generation and distribution systems. through Friday, except Federal holidays. provisions of § 21.16. The applicable airworthiness Special conditions are initially regulations do not contain adequate or FOR FURTHER INFORMATION CONTACT: applicable to the model for which they appropriate safety standards for this Nazih Khaouly, FAA, Airplane and are issued. Should the type certificate design feature. These special conditions Flightcrew Interface Branch, ANM–111, for that model be amended later to contain the additional safety standards Transport Airplane Directorate, Aircraft include any other model that that the Administrator considers Certification Service, 1601 Lind Avenue incorporates the same or similar novel necessary to establish a level of safety SW, Renton, Washington 98057–3356; or unusual design feature, the special equivalent to that established by the telephone 425–227–2432; facsimile conditions would also apply to the other existing airworthiness standards. 425–227–1320. model under § 21.101. DATES: This action is effective on SUPPLEMENTARY INFORMATION: The FAA In addition to the applicable Gulfstream on February 1, 2018. We has determined that notice of, and airworthiness regulations and special must receive your comments by March opportunity for prior public comment conditions, Model GVII–G500 airplanes 19, 2018. on, these special conditions is must comply with the fuel-vent and ADDRESSES: Send comments identified unnecessary because the substance of exhaust-emission requirements of 14 by docket number FAA–2015–7290 these special conditions has been CFR part 34, and the noise-certification using any of the following methods: subject to the public-comment process requirements of 14 CFR part 36. The • Federal eRegulations Portal: Go to in several prior instances with no FAA must issue a finding of regulatory http://www.regulations.gov/ and follow substantive comments received. The adequacy under § 611 of Public Law 92– the online instructions for sending your FAA therefore finds that good cause 574, the ‘‘Noise Control Act of 1972.’’ comments electronically. exists for making these special The FAA issues special conditions, as • Mail: Send comments to Docket conditions effective upon publication in defined in 14 CFR 11.19, in accordance Operations, M–30, U.S. Department of the Federal Register. with § 11.38, and they become part of

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the type certification basis under for a change to the type certificate to of the flightcrew and passengers for the § 21.17(a)(2). include another model incorporating the longest diversion time for which same novel or unusual design feature, Gulfstream is seeking approval. Novel or Unusual Design Features these special conditions would apply to a. In showing compliance with this The Model GVII–G500 airplane will that model as well. requirement, Gulfstream must account incorporate the following novel or for common-cause failures, cascading Conclusion unusual design feature: failures, and zonal physical threats. An electronic flight-control system, This action affects only a certain b. Gulfstream may consider the ability the functions of which are dependent novel or unusual design feature on one to restore operation of portions of the upon the electrical power-generation model series of airplanes. It is not a rule electrical power generation and and distribution systems, whereby the of general applicability. distribution system if it can be shown loss of all electrical power may be The substance of these special that unrecoverable loss of those portions catastrophic to the airplane. These conditions has been subjected to the of the system is extremely improbable. special conditions retain the level of notice and comment period in several The design must provide an alternative safety offered by 14 CFR 25.1351(d). prior instances and has been derived source of electrical power for the time without substantive change from those Discussion required to restore the minimum previously issued. It is unlikely that electrical-power generation capability The Gulfstream Aerospace prior public comment would result in a required for safe flight and landing. Corporation Model GVII–G500 airplane significant change from the substance Gulfstream may exclude unrecoverable incorporates a fly-by-wire flight-control contained herein. Therefore, the FAA loss of all engines when showing system that requires a continuous has determined that prior public notice compliance with this requirement. source of electrical power to keep the and comment are unnecessary, and good 2. Regardless of electrical-power flight-control system operable. The cause exists for adopting these special generation and distribution-system current regulation, § 25.1351(d), conditions upon publication in the recovery capability shown under special Amendment 25–72, ‘‘Operation without Federal Register. condition 1, above, sufficient electrical- normal electrical power,’’ states that the The FAA is requesting comments to system capability must be provided to: airplane must be operated safely in allow interested persons to submit a. Allow time to descend, with all visual-flight-rules conditions for a views that may not have been submitted engines inoperative, at the speed that period of not less than five minutes after in response to the prior opportunities provides the best glide distance, from loss of all normal electrical power. This for comment described above. the maximum operating altitude to the rule was structured around a traditional List of Subjects in 14 CFR Part 25 top of the engine-restart envelope, and design of mechanical control cables for b. Subsequently allow multiple start flight control that allowed time for the Aircraft, Aviation safety, Reporting attempts of the engines and auxiliary crew to remedy an electrical failure, and recordkeeping requirements. power unit (APU). The design must start the engine(s) if necessary, and re- The authority citation for these provide this capability in addition to the establish some or all of the electrical special conditions is as follows: electrical capability required by existing power-generation capability. Authority: 49 U.S.C. 106(g), 40113, 44701, part 25 requirements related to To maintain the same level of safety 44702, 44704. operation with all engines inoperative. associated with traditional designs, the 3. The airplane emergency electrical- The Special Conditions Model GVII–G500 airplane design must power system must be designed to not be time limited in its operation Because the total loss of normal, supply: when the airplane is without its normal generated, electrical power in two- a. Electrical power required for source of engine- or auxiliary-power- engine airplanes is not extremely immediate safety, which must continue unit-generated electrical power. Service improbable, and because the loss of all to operate without the need for crew experience has shown that the loss of all electrical power may be catastrophic to action following the loss of the normal electrical power generated by an airplanes equipped with an electronic electrical power, for a duration airplane’s engine generators or auxiliary flight-control system, the following sufficient to allow reconfiguration to power unit (APU) is not extremely special conditions apply to Gulfstream provide a non-time-limited source of improbable. Likewise, regulations Model GVII airplanes. electrical power. require the applicant to demonstrate In lieu of § 25.1351(d), the following b. Electrical power required for that the airplane has the power required special conditions apply: continued safe flight and landing for the for continued safe flight and landing 1. Gulfstream must show, by test or a maximum diversion time. with the use of its emergency electrical combination of test and analysis, that 4. If the applicant uses APU-generated power systems. These emergency the airplane is capable of continued safe electrical power to satisfy the electrical power systems must be able to flight and landing with all normal requirements of these special power all loads considered essential for electrical power sources inoperative, as conditions, and if reaching a suitable continued safe flight and landing. prescribed by paragraphs 1.a. and 1.b., runway for landing is beyond the These special conditions contain the below. For purposes of these special capacity of the battery systems, then the additional safety standards that the conditions, normal sources of electrical- APU must be able to be started under Administrator considers necessary to power generation do not include any foreseeable flight condition prior to establish a level of safety equivalent to alternate power sources such as the the depletion of the battery, or the that established by the existing battery, ram-air turbine, or independent restoration of normal electrical power, airworthiness standards. power systems such as the flight-control whichever occurs first. Flight test must permanent-magnet generating system. In demonstrate this capability at the most Applicability showing capability for continued safe critical condition. As discussed above, these special flight and landing, Gulfstream must a. The applicant must show that the conditions are applicable to the account for systems capability, effects APU will provide adequate electrical Gulfstream Model GVII–G500 airplane. on crew workload and operating power for continued safe flight and Should Gulfstream apply at a later date conditions, and the physiological needs landing.

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b. The airplane flight manual (AFM) management of instrument flight rules Docket No. FAA–2017–0610 to amend must incorporate abnormal procedures (IFR) operations at the airport. This Class E airspace extending upward from that direct the pilot to take appropriate action also updates the geographic 700 feet or more above the surface at actions to activate the APU after loss of coordinates of the airport. Sugarloaf Regional Airport, Carrabassett, normal engine-driven generated DATES: Effective 0901 UTC, March 29, ME. electrical power. 2018. The Director of the Federal Interested parties were invited to 5. As part of showing compliance Register approves this incorporation by participate in this rulemaking effort by with these special conditions, the tests reference action under title 1, Code of submitting written comments on the to demonstrate loss of all normal Federal Regulations, part 51, subject to proposal to the FAA. No comments electrical power must also take into the annual revision of FAA Order were received. account the following: 7400.11 and publication of conforming Class E airspace designations are a. The assumption that the failure amendments. published in paragraph 6005, of FAA condition occurs during night Order 7400.11B dated August 3, 2017, ADDRESSES: FAA Order 7400.11B, instrument meteorological conditions Airspace Designations and Reporting and effective September 15, 2017, which (IMC) at the most critical phase of the Points, and subsequent amendments can is incorporated by reference in 14 CFR flight, relative to the worst possible be viewed online at http://www.faa.gov/ part 71.1. The Class E airspace electrical-power distribution and air_traffic/publications/. For further designations listed in this document equipment-loads-demand condition. information, you can contact the will be published subsequently in the b. After an unrestorable loss of normal Airspace Policy Group, Federal Aviation Order. engine-driven generated electrical Administration, 800 Independence Availability and Summary of power, the airplane engine-restart Avenue SW, Washington, DC 20591; Documents for Incorporation by capability is provided and operations telephone: (202) 267–8783. The Order is Reference are continued in IMC. also available for inspection at the c. The airplane is demonstrated to be This document amends FAA Order National Archives and Records capable of continued safe flight and 7400.11B, Airspace Designations and Administration (NARA). For landing. The duration of this capability Reporting Points, dated August 3, 2017, information on the availability of FAA must be computed based on the and effective September 15, 2017. FAA Order 7400.11A at NARA, call (202) maximum diversion-time capability for Order 7400.11B is publicly available as 741–6030, or go to https:// which the airplane is being certified. listed in the ADDRESSES section of this www.archives.gov/federal-register/cfr/ The applicant must account for airspeed document. FAA Order 7400.11B lists ibr-locations.html. reductions resulting from the associated Class A, B, C, D, and E airspace areas, FAA Order 7400.11, Airspace failure or failures. air traffic service routes, and reporting Designations and Reporting Points, is d. The airplane must provide points. published yearly and effective on adequate indication of loss of normal September 15. The Rule electrical power to direct the pilot to the abnormal procedures, and the AFM FOR FURTHER INFORMATION CONTACT: John This action amends Title 14 Code of must incorporate abnormal procedures Fornito, Operations Support Group, Federal Regulations (14 CFR) part 71 by that will direct the pilot to take Eastern Service Center, Federal Aviation amending Class E airspace extending appropriate actions. Administration, P.O. Box 20636, upward from 700 feet or more above the Atlanta, Georgia 30320; telephone (404) surface within the 7-mile radius of Issued in Renton, Washington, on January 305–6364. 11, 2018. Sugarloaf Regional Airport, Carrabassett, SUPPLEMENTARY INFORMATION: ME. A 14.3-mile extension to the north Victor Wicklund, is created, extending from the 7-mile Authority for This Rulemaking Manager, Transport Standards Branch, Policy radius of the airport for the new RNAV– and Innovation Division, Aircraft The FAA’s authority to issue rules Certification Service. (GPS–A) approach for the airport, and regarding aviation safety is found in for continued safety and management of [FR Doc. 2018–01963 Filed 1–31–18; 8:45 am] Title 49 of the United States Code. IFR operations. BILLING CODE 4910–13–P Subtitle I, Section 106 describes the The geographic coordinates of the authority of the FAA Administrator. airport are adjusted to coincide with the Subtitle VII, Aviation Programs, FAA’s aeronautical database. DEPARTMENT OF TRANSPORTATION describes in more detail the scope of the Regulatory Notices and Analyses Federal Aviation Administration agency’s authority. This rulemaking is promulgated under the authority The FAA has determined that this regulation only involves an established 14 CFR Part 71 described in Subtitle VII, Part A, Subpart I, Section 40103. Under that body of technical regulations for which [Docket No. FAA–2017–0610; Airspace section, the FAA is charged with frequent and routine amendments are Docket No. 17–ANE–3] prescribing regulations to assign the use necessary to keep them operationally of airspace necessary to ensure the current. Therefore, this regulation: (1) Is Amendment of Class E Airspace; safety of aircraft and the efficient use of not a ‘‘significant regulatory action’’ Carrabassett, ME airspace. This regulation is within the under Executive Order 12866; (2) is not AGENCY: Federal Aviation scope of that authority as it amends a ‘‘significant rule’’ under DOT Administration (FAA), DOT. Class E airspace at Sugarloaf Regional Regulatory Policies and Procedures (44 ACTION: Final rule. Airport, Carrabassett, ME, to support FR 11034; February 26, 1979); and (3) IFR operations at the airport. does not warrant preparation of a SUMMARY: This action amends Class E regulatory evaluation as the anticipated airspace at Carrabassett, ME, due to the History impact is so minimal. Since this is a new arrival procedure established for The FAA published a notice of routine matter that only affects air traffic Sugarloaf Regional Airport. Controlled proposed rulemaking in the Federal procedures and air navigation, it is airspace is necessary for the safety and Register (82 FR 38857, August 16, 2017) certified that this rule, when

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promulgated, does not have a significant CONSUMER PRODUCT SAFETY concentrations of more than 0.1 percent economic impact on a substantial COMMISSION of DINP. The phthalates rule also lifted number of small entities under the the interim prohibitions on children’s [Docket No. CPSC–2017–0043] criteria of the Regulatory Flexibility Act. toys that can be placed in a child’s mouth and child care articles that Environmental Review 16 CFR Part 1112 contain concentrations of more than 0.1 The FAA has determined that this CPSC Acceptance of Third Party percent of di-n-octyl phthalate (DNOP) action qualifies for categorical exclusion Laboratories: Revision to the Notice of or diisodecyl phthalate (DIDP). In under the National Environmental Requirements for Prohibitions of addition, the phthalates rule prohibited Policy Act in accordance with FAA Children’s Toys and Child Care children’s toys and child care articles Order 1050.1F, ‘‘Environmental Articles Containing Specified that contain concentrations of more than Impacts: Policies and Procedures,’’ Phthalates 0.1 percent of diisobutyl phthalate paragraph 5–6.5a. This airspace action (DIBP), Di-n-pentyl phthalate (DPENP), is not expected to cause any potentially AGENCY: Consumer Product Safety di-n-hexyl phthalate (DHEXP), and significant environmental impacts, and Commission. dicyclohexyl phthalate (DCHP). The no extraordinary circumstances exist ACTION: Final rule; notice of permanent prohibitions on children’s that warrant preparation of an requirements. toys and child care articles that contain environmental assessment. concentrations of more than 0.1 percent SUMMARY: This final rule updates the on the use of di-(2-ethylhexyl) phthalate Lists of Subjects in 14 CFR Part 71 notice of requirements (NOR) for the (DEHP), dibutyl phthalate (DBP), and Airspace, Incorporation by reference, accreditation of third party laboratories benzyl butyl phthalate (BBP) in Navigation (air). to assess conformity with the children’s toys and child care articles in prohibitions of children’s toys and child Adoption of the Amendment section 108 of the CPSIA were care articles containing specified unchanged by the phthalates rule. In consideration of the foregoing, the phthalates. The NOR provides the On October 27, 2017, in the same Federal Aviation Administration criteria and process for Commission issue of the Federal Register, the amends 14 CFR part 71 as follows: acceptance of accreditation under the Commission published a notice of Consumer Product Safety Act (CPSA). proposed rulemaking (NPR) to update PART 71—DESIGNATION OF CLASS A, This rule makes the NOR consistent the existing NOR in part 1112 for B, C, D, AND E AIRSPACE AREAS; AIR with the regulated phthalates in prohibitions of children’s toys and child TRAFFIC SERVICE ROUTES; AND children’s toys and child care articles in care articles containing specified REPORTING POINTS the phthalates final rule published in phthalates. As explained further below, ■ 1. The authority citation for part 71 the Federal Register on October 27, NORs provide the criteria and process continues to read as follows: 2017. for Commission acceptance of accreditation of third party testing Authority: 49 U.S.C. 106(f), 106(g); 40103, DATES: This rule is effective on April 25, 2018. The incorporation by reference of laboratories that test products’ 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, conformance to CPSC requirements. The 1959–1963 Comp., p. 389. the publication listed in this rule is approved by the Director of the Federal Commission previously issued an NOR § 71.1 [Amended] Register, as of April 25, 2018. for the statutory phthalate provisions, ■ 2. The incorporation by reference in 76 FR 49286 (August 10, 2011). The FOR FURTHER INFORMATION CONTACT: October 27, 2017 NPR proposed to 14 CFR 71.1 of Federal Aviation Scott R. Heh, Project Manager, Administration Order 7400.11B, amend part 1112 to reflect the Directorate for Laboratory Sciences, phthalates prohibited in children’s toys Airspace Designations and Reporting Consumer Product Safety Commission, Points, dated August 3, 2017, effective and child care articles in the phthalates 5 Research Place, Rockville, MD 20850; rule. Because the phthalates rule September 15, 2017, is amended as telephone: 301–504–7646; email: sheh@ follows: modified the statutorily prohibited cpsc.gov. phthalates in children’s toys and child * * * * * SUPPLEMENTARY INFORMATION: care articles listed in section 108 of the ANE ME E5 Carrabassett, ME [Amended] A. Background CPSIA (as stated in § 1307.3), this final Sugarloaf Regional Airport rule amends the existing requirements (Lat. 45°05′08″ N, long. 70°12′59″ W) Section 108 of the Consumer Product for the prohibitions of children’s toys Point in Space Coordinates Safety Improvement Act of 2008 and child care articles containing (Lat. 45°06′26″ N, long. 70°12′30″ W) (CPSIA) established requirements specified phthalates so that part 1112 That airspace extending upward from 700 concerning concentration limits for reflects those changes. feet above the surface of the earth within a specified phthalates in children’s toys 6-mile radius of the Point in Space and child care articles. In accordance B. Notice of Requirements Coordinates (lat. 45°06′26″ N, long. 70°12′30″ with section 108 of the CPSIA, on Section 14(a) of the CPSA requires W) serving the Sugarloaf Regional Airport, October 27, 2017, the Commission that products subject to a consumer and within a 7-mile radius of the airport, and published a phthalates final rule product safety rule under the CPSA, or ° within 1 mile each side of the 346 bearing (phtahalates rule) in the Federal to a similar rule, ban, standard, or from the airport, extending from the 7-mile Register (82 FR 49938). That final rule regulation under any other act enforced radius to 14.3-miles north of the airport. made permanent the interim prohibition by the Commission, be certified as Issued in College Park, Georgia, on January on children’s toys that can be placed in complying with all applicable CPSC 22, 2018. a child’s mouth and child care articles requirements. 15 U.S.C. 2063(a). Such Ryan W. Almasy, that contain concentrations of more than certification must be based on a test of Manager, Operations Support Group, Eastern 0.1 percent of diisononyl phthalate each product, or on a reasonable testing Service Center, Air Traffic Organization. (DINP). The phthalates rule extended program. Products that are subject to a [FR Doc. 2018–01679 Filed 1–31–18; 8:45 am] this prohibition to cover all children’s children’s product safety rule must be BILLING CODE 4910–13–P toys and child care articles containing certified based on tests of a sufficient

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number of samples by a third party CH–C1001–09.4 (2018) as soon as Chromatography-Mass Spectrometry conformity assessment body accredited possible, and submit their application (GC–MS). Staff did not make changes to by the Commission to test according to for CPSC acceptance. Laboratories that Table 1, as well as other recommended the applicable requirements. The were not previously CPSC-accepted to quality assurance changes to the Commission’s phthalates rule is CPSC–CH–C1001–09.3 (2010) are analysis section of the test method, in considered a ‘‘children’s product safety instructed to work with their order to allow accredited laboratories rule.’’ 15 U.S.C. 2063(f). Thus, products accreditation bodies to include ‘‘CPSC– flexibility in setting up their internal subject to the phthalates rule are subject CH–C1001–09.4 (2018)’’ in their scope standard operating and quality to the testing and certification documents. assurance procedures. Adding the requirements of section 14 of the CPSA. CPSC will accept testing results to the suggested requirements to Table 1 might Because children’s toys and child care new phthalates prohibitions in 16 CFR have forced accredited laboratories to articles are children’s products, samples part 1307 from laboratories that are alter already suitable quality assurance of these products must be tested by a CPSC-accepted to CPSC–CH–C1001– programs, thus reducing flexibility. The third party conformity assessment body 09.3 (2010) for two years from the date comment relating to use of hexane for whose accreditation has been accepted of publication of this final rule in the PVC samples did not warrant a change by the Commission. These products also Federal Register. This should allow to the test method because the test must comply with all other applicable adequate time for laboratories to work method already permits the use of CPSC requirements, such as the lead with their accreditation bodies to make hexane. content requirements of section 101 of official updates to their accreditation the CPSIA, the requirements of the toy scope document to include the revised D. Description of the Rule standard, 16 CFR part 1250, and the CPSC method ‘‘CPSC–CH–C1001–09.4 The final rule amends 16 CFR tracking label requirement in section (2018)’’ and submit applications to the 1112.15(b)(31) introductory text, 14(a)(5) of the CPSA. CPSC. On February 3, 2020, the CPSC (b)(31)(i), and (c)(3)(i) to update the In accordance with section will no longer accept laboratory references to reflect the promulgation of 14(a)(3)(B)(vi) of the CPSIA, the applications that reference CPSC–CH– 16 CFR part 1307 and revised CPSC test Commission has previously published C1001–09.3 (2010), and any application method CPSC–CH–C1001–09.4 (2018). two NORs for accreditation of third to CPSC must reference ‘‘CPSC–CH– CPSC test method CPSC–CH–C1001– party conformity assessment bodies for C1001–09.4 (2018).’’ 09.4 (2018), has, among other things, testing children’s toys and child care been updated to reflect the list of articles under section 108 of the CPSIA C. Comments on the NPR phthalates prohibited in children’s toys (76 FR 49286 (Aug. 10, 2011), 78 FR We received four comments on the and child care articles in 16 CFR part 15836 (March 12, 2013)). NPR. Three comments addressed the 1307 (DEHP, DBP, BBP, DNOP, DIBP, As described in the NPR, the DRAFT CPSC procedure CPSC–CH– DPENP, DHEXP, or DCHP). CPSC test Commission will use the following C1001–09.4 (2017) that was published method CPSC–CH–C1001–09.4 (2018) process during the transition period with the October 2017 NPR briefing provides detailed information on the from test method CPSC–CH–C1001–09.3 package. The first comment requested test methods that will be used by the (2010) to a revised version of the clarification of the final list of CPSC testing laboratory for the analysis method, test method CPSC–CH–C1001– prohibited phthalates. The second of phthalate content in children’s toys 09.4 (2018). CPSC will accept testing to comment highlighted ‘‘that dissolved and child care articles covered by the support children’s toys and child care PVC-samples can be precipitated by standard set forth in section 108 of the article certifications to the new adding hexane. The phthalates remain CPSIA and 16 CFR part 1307. The test phthalates prohibitions if the laboratory in solution. The centrifuged solution method provides detailed information is already CPSC-accepted to test to can then be measured in the GC.’’ The regarding equipment and supplies, the CPSC–CH–C1001–09.3 (2010). third comment came from a testing procedure for the measurement of Laboratories that conduct testing to laboratory representative who phthalate concentration, sample support product certifications to the recommended a few changes to add preparation, the phthalate extraction new phthalates prohibitions must list in clarity and more specificity to the CPSC method, and instrument parameters. their test reports ‘‘16 CFR part 1307’’ procedure. The fourth comment was The test method CPSC–CH–C1001–09.4 and CPSC–CH–C1001–09.3 until outside the scope of the rule. (2018) is substantially the same as the laboratories have transitioned their Staff made editorial clarifications to current testing procedure. accreditation scope and CPSC listing to the DRAFT CPSC procedure based on CPSC–CH–C1001–09.4 (2018). the comments. Staff revised the test E. Incorporation by Reference The CPSC will open the laboratory procedure to clarify the final list of eight The Office of the Federal Register application process for test method prohibited phthalates. Also, staff made (OFR) has regulations concerning CPSC–CH–C1001–09.4 (2018) on the several additions to the test equipment incorporation by reference. 1 CFR part date this final rule is published in the and supplies section of the test method 51. Under these regulations, agencies Federal Register. Laboratories that seek reflected in test method CPSC–CH– must discuss, in the preamble to the CPSC acceptance to the revised C1001–09.4 (2018) in response to final rule, ways that the materials the prohibitions for children’s toys and comment. agency incorporates by reference are child care articles in 16 CFR part 1307 Staff did not accept some of the reasonably available to interested will be required to update their commenters’ suggested changes to the persons and how interested parties can accreditation scope. To be CPSC- test method. The revised test method obtain the materials. In addition, the accepted, a laboratory’s scope of does not add a temperature specification preamble to the final rule must accreditation must include the reference to the sonication reference in the summarize the material. 1 CFR 51.5(b). to CPSC–CH–C1001–09.4 (2018). extraction steps because the extraction In accordance with the OFR’s Laboratories that are currently CPSC- is not heat dependent. Additionally, the requirements, section D of this preamble accepted to CPSC–CH–C1001–09.3 revised test method does not include summarizes CPSC test method CPSC– (2010) are instructed to update their suggested additional elements to the CH–C1001–09.4 (2018) that the accreditation scope to include CPSC– Table 1 Conditions for Gas Commission incorporates by reference

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into 16 CFR part 1112. The test method allow testing laboratories to time the (i) CPSC Test Method CPSC–CH– is reasonably available to interested amendments with their periodic C1001–09.4, ‘‘Standard Operating parties, and interested parties may reassessments by their accreditation Procedure for Determination of obtain a copy of the test method from bodies, which should result in minimal Phthalates’’; CPSC National Product Testing and (if any) additional cost. The * * * * * Evaluation Center, 5 Research Place, Commission did not receive any public (c) * * * Rockville, MD 20850; www.cpsc.gov. comments that addressed the potential (3) * * * The test method is also available on the impact on small entities, nor has the (i) CPSC–CH–C1001–9.4, ‘‘Standard CPSC website. https://cpsc.gov/ Commission staff become aware of any Operating Procedure for Determination Business-Manufacturing/Testing- new information that would change its of Phthalates’’, January 17, 2018; Certification/Lab-Accreditation/Test- previous determination regarding the * * * * * Methods/. A copy of the test method can impact on small entities. also be inspected at CPSC’s Office of the Alberta E. Mills, Secretary, U.S. Consumer Product H. Environmental Considerations Acting Secretary, U.S. Consumer Product Safety Commission, Room 820, 4330 The Commission’s regulations Safety Commission. East-West Highway, Bethesda, MD provide a categorical exclusion for the [FR Doc. 2018–01452 Filed 1–31–18; 8:45 am] 20814, telephone 301–504–7923. Commission’s rules from any BILLING CODE 6355–01–P requirement to prepare an F. Effective Date environmental assessment or an The APA generally requires that a environmental impact statement DEPARTMENT OF JUSTICE substantive rule must be published not because they ‘‘have little or no potential less than 30 days before its effective for affecting the human environment.’’ Drug Enforcement Administration date. 5 U.S.C. 553(d)(1). The NPR 16 CFR 1021.5(c)(2). This rule falls proposed a 30-day effective date within the categorical exclusion, so no 21 CFR Part 1308 because the rule allows testing to environmental assessment or [Docket No. DEA–475] continue under the existing testing environmental impact statement is method by testing laboratories that meet required. Schedules of Controlled Substances: certain criteria for a period of up to two Temporary Placement of Seven List of Subjects in 16 CFR Part 1112 years after the publication of a final Fentanyl-Related Substances in rule. However, to avoid possible Administrative practice and Schedule I confusion if the effective date for this procedure, Audit, Consumer protection, rule differed from the effective date for Incorporation by reference, Reporting AGENCY: Drug Enforcement the underlying phthalates rule, we are and recordkeeping requirements, Third Administration, Department of Justice. setting the effective date for the rule on party conformity assessment body. ACTION: Temporary amendment; April 25, 2018, the same date the For the reasons discussed in the temporary scheduling order. phthalates rule takes effect. This is preamble, the Commission amends title SUMMARY: The Administrator of the Drug consistent with past practice setting the 16 CFR chapter II, as follows: effective date for NORs for durable Enforcement Administration is issuing nursery products under section 104 of PART 1112—REQUIREMENTS this temporary scheduling order to the CPSIA and updates to the PERTAINING TO THIRD PARTY schedule seven fentanyl-related mandatory toy standard ASTM F963 on CONFORMITY ASSESSMENT BODIES substances in schedule I. These seven the same date the underlying rule takes substances are: N-(1- effect. ■ 1. The authority citation for part 1112 phenethylpiperidin-4-yl)-N- continues to read as follows: phenylpentanamide (valeryl fentanyl), G. Regulatory Flexibility Act N-(4-fluorophenyl)-N-(1- Authority: 15 U.S.C. 2063; Pub. L. 110– The Regulatory Flexibility Act (RFA) 314, section 3, 122 Stat. 3016, 3017 (2008). phenethylpiperidin-4-yl)butyramide requires an agency to prepare a (para-fluorobutyryl fentanyl), N-(4- ■ regulatory flexibility analysis for any 2. Amend § 1112.15 by: methoxyphenyl)-N-(1- ■ rule subject to notice and comment a. Revising the introductory text to phenethylpiperidin-4-yl)butyramide rulemaking requirements under the paragraph (b)(31); (para-methoxybutyryl fentanyl), N-(4- ■ APA, or any other statute, unless the b. Revising paragraph (b)(31)(i); and chlorophenyl)-N-(1-phenethylpiperidin- ■ c. Revising paragraph (c)(3)(i). agency certifies that the rulemaking will 4-yl)isobutyramide (para- The revisions read as follows: not have a significant economic impact chloroisobutyryl fentanyl), N-(1- on a substantial number of small § 1112.15 When can a third party phenethylpiperidin-4-yl)-N- entities. 5 U.S.C. 603 and 605. Small conformity assessment body apply for phenylisobutyramide (isobutyryl entities include small businesses, small CPSC acceptance for a particular CPSC rule fentanyl), N-(1-phenethylpiperidin-4- organizations, and small governmental or test method? yl)-N-phenylcyclopentanecarboxamide jurisdictions. * * * * * (cyclopentyl fentanyl), and N-(2- The Commission certified, in the (b) * * * fluorophenyl)-2-methoxy-N-(1- NPR, that the rule would not have a (31) 16 CFR part 1307, Prohibition of phenethylpiperidin-4-yl)acetamide significant impact on a substantial Children’s Toys and Child Care Articles (ocfentanil). This action is based on a number of small entities because the Containing Specified Phthalates. For its finding by the Administrator that the revised testing method is substantially accreditation to be accepted by the placement of these seven synthetic the same as the method that laboratories Commission to test for phthalates in opioids in schedule I of the Controlled are already using, qualified testing children’s toys and child care articles, a Substances Act is necessary to avoid an laboratories should be able to adopt the third party conformity assessment body imminent hazard to the public safety. new method without difficulty, and the must have one or more of the following As a result of this order, the regulatory 2-year window allowed to amend the test methods referenced in its statement controls and administrative, civil, and accreditation scope documents would of scope: criminal sanctions applicable to

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schedule I controlled substances will be temporarily place a substance in necessary to avoid an imminent hazard imposed on persons who handle schedule I of the CSA.2 The to the public safety, the Administrator is (manufacture, distribute, reverse Administrator transmitted notice of his required to consider three of the eight distribute, import, export, engage in intent to place valeryl fentanyl, para- factors set forth in section 201(c) of the research, conduct instructional fluorobutyryl fentanyl, para- CSA, 21 U.S.C. 811(c): The substance’s activities or chemical analysis, or methoxybutyryl fentanyl, para- history and current pattern of abuse; the possess), or propose to handle, valeryl chloroisobutyryl fentanyl, isobutyryl scope, duration and significance of fentanyl, para-fluorobutyryl fentanyl, fentanyl, cyclopentyl fentanyl, and abuse; and what, if any, risk there is to para-methoxybutyryl fentanyl, para- ocfentanil in schedule I on a temporary the public health. 21 U.S.C. 811(h)(3). chloroisobutyryl fentanyl, isobutyryl basis to the Assistant Secretary for Consideration of these factors includes fentanyl, cyclopentyl fentanyl, and Health of HHS by letter dated October actual abuse, diversion from legitimate ocfentanil. 20, 2017. The Assistant Secretary channels, and clandestine importation, responded to this notice of intent by DATES: This temporary scheduling order manufacture, or distribution. 21 U.S.C. letter dated November 8, 2017, and is effective February 1, 2018, until 811(h)(3). advised that based on a review by the February 1, 2020. If this order is A substance meeting the statutory Food and Drug Administration (FDA), extended or made permanent, the DEA requirements for temporary scheduling there are currently no investigational will publish a document in the Federal may only be placed in schedule I. 21 new drug applications or approved new Register. U.S.C. 811(h)(1). Substances in schedule drug applications for valeryl fentanyl, FOR FURTHER INFORMATION CONTACT: I are those that have a high potential for para-fluorobutyryl fentanyl, para- abuse, no currently accepted medical Michael J. Lewis, Diversion Control methoxybutyryl fentanyl, para- Division, Drug Enforcement use in treatment in the United States, chloroisobutyryl fentanyl, isobutyryl and a lack of accepted safety for use Administration; Mailing Address: 8701 fentanyl, cyclopentyl fentanyl, and Morrissette Drive, Springfield, Virginia under medical supervision. 21 U.S.C. ocfentanil. The Assistant Secretary also 812(b)(1). 22152; Telephone: (202) 598–6812. stated that the HHS has no objection to SUPPLEMENTARY INFORMATION: Available data and information for the temporary placement of these seven valeryl fentanyl, para-fluorobutyryl substances in schedule I of the CSA. Legal Authority fentanyl, para-methoxybutyryl fentanyl, The DEA has taken into consideration para-chloroisobutyryl fentanyl, Section 201 of the Controlled the Assistant Secretary’s comments as isobutyryl fentanyl, cyclopentyl Substances Act (CSA), 21 U.S.C. 811, required by 21 U.S.C. 811(h)(4). Valeryl fentanyl, and ocfentanil, summarized provides the Attorney General with the fentanyl, para-fluorobutyryl fentanyl, below, indicate that these synthetic authority to temporarily place a para-methoxybutyryl fentanyl, para- opioids have a high potential for abuse, substance in schedule I of the CSA for chloroisobutyryl fentanyl, isobutyryl no currently accepted medical use in two years without regard to the fentanyl, cyclopentyl fentanyl, and treatment in the United States, and a requirements of 21 U.S.C. 811(b) if he ocfentanil are not currently listed in any lack of accepted safety for use under finds that such action is necessary to schedule under the CSA, and no avoid an imminent hazard to the public exemptions or approvals are in effect for medical supervision. The DEA’s three- safety. 21 U.S.C. 811(h)(1). In addition, these seven substances under section factor analysis and the Assistant if proceedings to control a substance are 505 of the FDCA, 21 U.S.C. 355. The Secretary’s November 8, 2017 letter are initiated under 21 U.S.C. 811(a)(1), the DEA has found that the control of available in their entirety under the tab Attorney General may extend the valeryl fentanyl, para-fluorobutyryl ‘‘Supporting Documents’’ of the public temporary scheduling 1 for up to one fentanyl, para-methoxybutyryl fentanyl, docket of this action at year. 21 U.S.C. 811(h)(2). para-chloroisobutyryl fentanyl, www.regulations.gov under FDMS Where the necessary findings are isobutyryl fentanyl, cyclopentyl Docket ID: DEA–2017–0016–0001 made, a substance may be temporarily fentanyl, and ocfentanil in schedule I on (Docket Number DEA–475). scheduled if it is not listed in any other a temporary basis is necessary to avoid Factor 4. History and Current Pattern of schedule under section 202 of the CSA, an imminent hazard to the public safety, Abuse 21 U.S.C. 812, or if there is no and as required by 21 U.S.C. exemption or approval in effect for the 811(h)(1)(A), a notice of intent to The recreational abuse of fentanyl- substance under section 505 of the temporarily schedule valeryl fentanyl, related substances continues to be a Federal Food, Drug, and Cosmetic Act para-fluorobutyryl fentanyl, para- significant concern. These substances (FDCA), 21 U.S.C. 355. 21 U.S.C. methoxybutyryl fentanyl, para- are distributed to users, often with 811(h)(1). The Attorney General has chloroisobutyryl fentanyl, isobutyryl unpredictable outcomes. Evidence delegated scheduling authority under 21 fentanyl, cyclopentyl fentanyl, and suggests that the pattern of abuse of U.S.C. 811 to the Administrator of the ocfentanil was published in the Federal these fentanyl-related substances DEA. 28 CFR 0.100. Register on December 13, 2017. 82 FR parallels that of heroin and prescription 58575. opioid analgesics. Valeryl fentanyl, Background To find that placing a substance para-fluorobutyryl fentanyl, para- Section 201(h)(4) of the CSA, 21 temporarily in schedule I of the CSA is methoxybutyryl fentanyl, para- U.S.C. 811(h)(4), requires the chloroisobutyryl fentanyl, isobutyryl Administrator to notify the Secretary of 2 As discussed in a memorandum of fentanyl, cyclopentyl fentanyl, and the Department of Health and Human understanding entered into by the Food and Drug ocfentanil are fentanyl-related Services (HHS) of his intention to Administration (FDA) and the National Institute on substances that have been encountered Drug Abuse (NIDA), the FDA acts as the lead agency within the HHS in carrying out the Secretary’s by law enforcement and/or reported in 1 Though DEA has used the term ‘‘final order’’ scheduling responsibilities under the CSA, with the the scientific literature by public health with respect to temporary scheduling orders in the concurrence of NIDA. 50 FR 9518, Mar. 8, 1985. officials. Adverse health effects and past, this document adheres to the statutory The Secretary of the HHS has delegated to the outcomes related to the abuse of language of 21 U.S.C. 811(h), which refers to a Assistant Secretary for Health of the HHS the ‘‘temporary scheduling order.’’ No substantive authority to make domestic drug scheduling fentanyl-related substances have been change is intended. recommendations. 58 FR 35460, July 1, 1993. documented in previous temporary

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scheduling actions (see DEA 3-Factor fentanyl, cyclopentyl fentanyl, and continued uncontrolled manufacture, Analysis). ocfentanil in forensic evidence indicates distribution, reverse distribution, On October 1, 2014, the DEA that these substances are intended to be importation, exportation, conduct of implemented STARLiMS (a web-based, replacements for controlled synthetic research and chemical analysis, commercial laboratory information opioids, heroin, and/or prescription possession, and abuse of valeryl management system) to replace the opioids. Because abusers of these fentanyl, para-fluorobutyryl fentanyl, System to Retrieve Information from fentanyl-related substances obtain these para-methoxybutyryl fentanyl, para- Drug Evidence (STRIDE) as its substances through unregulated sources, chloroisobutyryl fentanyl, isobutyryl laboratory drug evidence data system of the identity, purity, and quantity are fentanyl, cyclopentyl fentanyl, and record. DEA laboratory data submitted uncertain and inconsistent, thus posing ocfentanil pose an imminent hazard to after September 30, 2014, are reposited significant adverse health risks to the the public safety. The DEA is not aware in STARLiMS. Data from STRIDE and end user. Individuals who initiate (i.e., of any currently accepted medical uses STARLiMS were queried on November use a drug for the first time) abuse of for these seven substances in the United 2, 2017. STARLiMS registered the these substances are likely to be at risk States. A substance meeting the following reports: valeryl fentanyl (15), of developing substance use disorder, statutory requirements for temporary para-fluorobutyryl fentanyl (5), overdose, and death similar to that of scheduling, 21 U.S.C. 811(h)(1), may isobutyryl fentanyl (116), and other opioid analgesics (e.g., fentanyl, only be placed in schedule I. Substances cyclopentyl fentanyl (1). These morphine). in schedule I are those that have a high potential for abuse, no currently identifications were made beginning in Factor 6. What, if Any, Risk There Is to accepted medical use in treatment in the 2015. the Public Health The National Forensic Laboratory United States, and a lack of accepted Information System (NFLIS) is a With no legitimate medical use in the safety for use under medical national drug forensic laboratory United States, valeryl fentanyl, para- supervision. Available data and reporting system that systematically fluorobutyryl fentanyl, para- information for valeryl fentanyl, para- collects results from drug chemistry methoxybutyryl fentanyl, para- fluorobutyryl fentanyl, para- analyses conducted by other federal, chloroisobutyryl fentanyl, isobutyryl methoxybutyryl fentanyl, para- state and local forensic laboratories fentanyl, cyclopentyl fentanyl, and chloroisobutyryl fentanyl, isobutyryl across the country. NFLIS was queried ocfentanil have emerged on the illicit fentanyl, cyclopentyl fentanyl, and on November 3, 2017 3 and the drug market. Substances within this ocfentanil indicate that these substances following substances (number of drug chemical structural class have have a high potential for abuse, no reports) were identified from state and demonstrated pharmacological profiles currently accepted medical use in local forensic laboratories since 2015: similar to that of fentanyl and other m- treatment in the United States, and a valeryl fentanyl (69), para-fluorobutyryl opioid receptor agonists (see DEA 3- lack of accepted safety for use under fentanyl (220), para-methoxybutyryl Factor Analysis). The abuse of these medical supervision. As required by fentanyl (1), and isobutyryl fentanyl (4). fentanyl-related substances poses section 201(h)(4) of the CSA, 21 U.S.C. The identification in other countries of significant adverse health risks when 811(h)(4), the Administrator, by letter para-fluorobutyryl fentanyl (Poland and compared to abuse of pharmaceutical dated October 20, 2017, notified the Sweden), para-methoxybutyryl fentanyl preparations of opioid analgesics, such Assistant Secretary of the DEA’s (Sweden), ocfentanil (Belgium and as morphine and oxycodone. The toxic intention to temporarily place these Switzerland), cylcopentyl fentanyl effects of substances within this substances in schedule I. A notice of (Sweden), and para-chloroisobutyryl structural class in humans are intent was subsequently published in fentanyl (Sweden) in toxicological demonstrated by overdose fatalities the Federal Register on December 13, samples associated with fatal and non- described in previous scheduling 2017. 82 FR 58575. fatal overdoses was reported in the actions. Based on information received by the Conclusion scientific literature. DEA, the misuse and abuse of valeryl In accordance with the provisions of Factor 5. Scope, Duration and fentanyl, para-fluorobutyryl fentanyl, section 201(h) of the CSA, 21 U.S.C. Significance of Abuse para-methoxybutyryl fentanyl, para- 811(h), the Administrator considered Fentanyl-related substances have chloroisobutyryl fentanyl, isobutyryl available data and information, and recently re-emerged on the illicit market fentanyl, cyclopentyl fentanyl, and herein sets forth the grounds for his (see DEA 3-Factor Analysis for full ocfentanil lead to, at least, the same determination that it is necessary to discussion). Valeryl fentanyl, para- qualitative public health risks as heroin, temporarily schedule valeryl fentanyl, fluorobutyryl fentanyl, para- fentanyl and other opioid analgesic para-fluorobutyryl fentanyl, para- methoxybutyryl fentanyl, para- substances. As with any non-medically methoxybutyryl fentanyl, para- chloroisobutyryl fentanyl, isobutyryl approved opioid, the health and safety chloroisobutyryl fentanyl, isobutyryl fentanyl, cyclopentyl fentanyl, and risks for users are high. The public fentanyl, cyclopentyl fentanyl, and ocfentanil have been identified in health risks attendant to the abuse of ocfentanil in schedule I of the CSA to evidence submitted to law enforcement heroin and opioid analgesics are well avoid an imminent hazard to the public and/or reported in the scientific established and have resulted in large safety. Because the Administrator hereby literature by public health forensic numbers of drug treatment admissions, finds it necessary to temporarily place laboratories. emergency department visits, and fatal these synthetic opioids in schedule I to The identification of valeryl fentanyl, overdoses. avoid an imminent hazard to the public para-fluorobutyryl fentanyl, para- Finding of Necessity of Schedule I safety, this temporary order scheduling methoxybutyryl fentanyl, para- Placement To Avoid Imminent Hazard valeryl fentanyl, para-fluorobutyryl chloroisobutyryl fentanyl, isobutyryl to Public Safety fentanyl, para-methoxybutyryl fentanyl, 3 Data are still being collected for July 2017– In accordance with 21 U.S.C. para-chloroisobutyryl fentanyl, October 2017 due to the normal lag period for labs 811(h)(3), based on the available data isobutyryl fentanyl, cyclopentyl reporting to NFLIS. and information, summarized above, the fentanyl, and ocfentanil is effective on

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the date of publication in the Federal registration and may not continue to in accordance with 21 CFR 1304.03, Register, and is in effect for a period of handle valeryl fentanyl, para- 1304.04, and 1304.11. Current DEA two years, with a possible extension of fluorobutyryl fentanyl, para- registrants shall have 30 calendar days one additional year, pending methoxybutyryl fentanyl, para- from the effective date of this order to completion of the regular (permanent) chloroisobutyryl fentanyl, isobutyryl be in compliance with all inventory scheduling process. 21 U.S.C. 811(h)(1) fentanyl, cyclopentyl fentanyl, or requirements. After the initial and (2). ocfentanil as of February 1, 2018, unless inventory, every DEA registrant must The CSA sets forth specific criteria for the DEA has approved that application take an inventory of all controlled scheduling a drug or other substance. for registration pursuant to 21 U.S.C. substances (including valeryl fentanyl, Permanent scheduling actions in 822, 823, 957, 958, and in accordance para-fluorobutyryl fentanyl, para- accordance with 21 U.S.C. 811(a) are with 21 CFR parts 1301 and 1312. Retail methoxybutyryl fentanyl, para- subject to formal rulemaking procedures sales of schedule I controlled substances chloroisobutyryl fentanyl, isobutyryl done ‘‘on the record after opportunity to the general public are not allowed fentanyl, cyclopentyl fentanyl, and for a hearing’’ conducted pursuant to under the CSA. Possession of any ocfentanil) on hand on a biennial basis, the provisions of 5 U.S.C. 556 and 557. quantity of these substances in a manner pursuant to 21 U.S.C. 827 and 958, and 21 U.S.C. 811. The permanent not authorized by the CSA on or after in accordance with 21 CFR 1304.03, scheduling process of formal February 1, 2018, is unlawful and those 1304.04, and 1304.11. rulemaking affords interested parties in possession of any quantity of these 6. Records. All DEA registrants must with appropriate process and the substances may be subject to maintain records with respect to valeryl government with any additional prosecution pursuant to the CSA. fentanyl, para-fluorobutyryl fentanyl, relevant information needed to make a 2. Disposal of stocks. Any person who para-methoxybutyryl fentanyl, para- determination. Final decisions that does not desire or is not able to obtain chloroisobutyryl fentanyl, isobutyryl conclude the permanent scheduling a schedule I registration to handle fentanyl, cyclopentyl fentanyl, and process of formal rulemaking are subject valeryl fentanyl, para-fluorobutyryl ocfentanil pursuant to 21 U.S.C. 827 and to judicial review. 21 U.S.C. 877. fentanyl, para-methoxybutyryl fentanyl, 958, and in accordance with 21 CFR Temporary scheduling orders are not para-chloroisobutyryl fentanyl, parts 1304, 1312, 1317, and § 1307.11. subject to judicial review. 21 U.S.C. isobutyryl fentanyl, cyclopentyl Current DEA registrants shall have 30 811(h)(6). fentanyl, or ocfentanil, must surrender calendar days from the effective date of all currently held quantities of valeryl Requirements for Handling this order to be in compliance with all fentanyl, para-fluorobutyryl fentanyl, recordkeeping requirements. Upon the effective date of this para-methoxybutyryl fentanyl, para- 7. Reports. All DEA registrants who temporary order, valeryl fentanyl, para- chloroisobutyryl fentanyl, isobutyryl manufacture or distribute valeryl fluorobutyryl fentanyl, para- fentanyl, cyclopentyl fentanyl, or fentanyl, para-fluorobutyryl fentanyl, methoxybutyryl fentanyl, para- ocfentanil. chloroisobutyryl fentanyl, isobutyryl 3. Security. Valeryl fentanyl, para- para-methoxybutyryl fentanyl, para- fentanyl, cyclopentyl fentanyl, and fluorobutyryl fentanyl, para- chloroisobutyryl fentanyl, isobutyryl ocfentanil will be subject to the methoxybutyryl fentanyl, para- fentanyl, cyclopentyl fentanyl, or regulatory controls and administrative, chloroisobutyryl fentanyl, isobutyryl ocfentanil must submit reports pursuant civil, and criminal sanctions applicable fentanyl, cyclopentyl fentanyl, and to 21 U.S.C. 827, and in accordance to the manufacture, distribution, reverse ocfentanil are subject to schedule I with 21 CFR parts 1304 and 1312, as of distribution, importation, exportation, security requirements and must be February 1, 2018. engagement in research, and conduct of handled and stored pursuant to 21 8. Order Forms. All DEA registrants instructional activities or chemical U.S.C. 821, 823, 871(b), and in who distribute valeryl fentanyl, para- analysis with, and possession of accordance with 21 CFR 1301.71– fluorobutyryl fentanyl, para- schedule I controlled substances 1301.93, as of February 1, 2018. methoxybutyryl fentanyl, para- including the following: 4. Labeling and packaging. All labels, chloroisobutyryl fentanyl, isobutyryl 1. Registration. Any person who labeling, and packaging for commercial fentanyl, cyclopentyl fentanyl, or handles (manufactures, distributes, containers of valeryl fentanyl, para- ocfentanil must comply with order form reverse distributes, imports, exports, fluorobutyryl fentanyl, para- requirements pursuant to 21 U.S.C. 828, engages in research, or conducts methoxybutyryl fentanyl, para- and in accordance with 21 CFR part instructional activities or chemical chloroisobutyryl fentanyl, isobutyryl 1305, as of February 1, 2018. analysis with, or possesses), or who fentanyl, cyclopentyl fentanyl, and 9. Importation and Exportation. All desires to handle, valeryl fentanyl, para- ocfentanil must be in compliance with importation and exportation of valeryl fluorobutyryl fentanyl, para- 21 U.S.C. 825, 958(e), and be in fentanyl, para-fluorobutyryl fentanyl, methoxybutyryl fentanyl, para- accordance with 21 CFR part 1302. para-methoxybutyryl fentanyl, para- chloroisobutyryl fentanyl, isobutyryl Current DEA registrants shall have 30 chloroisobutyryl fentanyl, isobutyryl fentanyl, cyclopentyl fentanyl, or calendar days from February 1, 2018, to fentanyl, cyclopentyl fentanyl, and ocfentanil must be registered with the comply with all labeling and packaging ocfentanil must be in compliance with DEA to conduct such activities pursuant requirements. 21 U.S.C. 952, 953, 957, 958, and in to 21 U.S.C. 822, 823, 957, and 958, and 5. Inventory. Every DEA registrant accordance with 21 CFR part 1312, as of in accordance with 21 CFR parts 1301 who possesses any quantity of valeryl February 1, 2018. and 1312, as of February 1, 2018. Any fentanyl, para-fluorobutyryl fentanyl, 10. Quota. Only DEA registered person who currently handles valeryl para-methoxybutyryl fentanyl, para- manufacturers may manufacture valeryl fentanyl, para-fluorobutyryl fentanyl, chloroisobutyryl fentanyl, isobutyryl fentanyl, para-fluorobutyryl fentanyl, para-methoxybutyryl fentanyl, para- fentanyl, cyclopentyl fentanyl, or para-methoxybutyryl fentanyl, para- chloroisobutyryl fentanyl, isobutyryl ocfentanil on the effective date of this chloroisobutyryl fentanyl, isobutyryl fentanyl, cyclopentyl fentanyl, or order must take an inventory of all fentanyl, cyclopentyl fentanyl, or ocfentanil, and is not registered with the stocks of these substances on hand, ocfentanil in accordance with a quota DEA, must submit an application for pursuant to 21 U.S.C. 827 and 958, and assigned pursuant to 21 U.S.C. 826, and

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in accordance with 21 CFR part 1303, as manifest urgency to avoid an imminent pursuant to 21 U.S.C. 811(h), which is of February 1, 2018. hazard to the public safety. specifically designed to enable the DEA 11. Liability. Any activity involving Further, the DEA believes that this to act in an expeditious manner to avoid valeryl fentanyl, para-fluorobutyryl temporary scheduling action is not a an imminent hazard to the public safety. fentanyl, para-methoxybutyryl fentanyl, ‘‘rule’’ as defined by 5 U.S.C. 601(2), 21 U.S.C. 811(h) exempts the temporary para-chloroisobutyryl fentanyl, and, accordingly, is not subject to the scheduling order from standard notice isobutyryl fentanyl, cyclopentyl requirements of the Regulatory and comment rulemaking procedures to fentanyl, or ocfentanil not authorized Flexibility Act. The requirements for the ensure that the process moves swiftly. by, or in violation of, the CSA, occurring preparation of an initial regulatory For the same reasons that underlie 21 as of February 1, 2018, is unlawful, and flexibility analysis in 5 U.S.C. 603(a) are U.S.C. 811(h), that is, the DEA’s need to may subject the person to not applicable where, as here, the DEA move quickly to place these substances administrative, civil, and/or criminal is not required by the APA or any other in schedule I because they pose an sanctions. law to publish a general notice of imminent hazard to the public safety, it proposed rulemaking. Regulatory Matters would be contrary to the public interest Additionally, this action is not a to delay implementation of the Section 201(h) of the CSA, 21 U.S.C. significant regulatory action as defined temporary scheduling order. Therefore, 811(h), provides for a temporary by Executive Order 12866 (Regulatory this order shall take effect immediately scheduling action where such action is Planning and Review), section 3(f), and, upon its publication. The DEA has necessary to avoid an imminent hazard accordingly, this action has not been submitted a copy of this temporary to the public safety. As provided in this reviewed by the Office of Management order to both Houses of Congress and to subsection, the Attorney General may, and Budget (OMB). the Comptroller General, although such by order, schedule a substance in This action will not have substantial filing is not required under the Small schedule I on a temporary basis. Such direct effects on the States, on the Business Regulatory Enforcement an order may not be issued before the relationship between the national Fairness Act of 1996 (Congressional expiration of 30 days from (1) the government and the States, or on the Review Act), 5 U.S.C. 801–808 because, publication of a notice in the Federal distribution of power and as noted above, this action is an order, Register of the intention to issue such responsibilities among the various not a rule. order and the grounds upon which such levels of government. Therefore, in order is to be issued, and (2) the date accordance with Executive Order 13132 List of Subjects in 21 CFR Part 1308 that notice of the proposed temporary (Federalism), it is determined that this Administrative practice and scheduling order is transmitted to the action does not have sufficient procedure, Drug traffic control, Assistant Secretary. 21 U.S.C. 811(h)(1). federalism implications to warrant the Reporting and recordkeeping Inasmuch as section 201(h) of the preparation of a Federalism Assessment. requirements. CSA directs that temporary scheduling As noted above, this action is an order, actions be issued by order and sets forth not a rule. Accordingly, the For the reasons set out above, the DEA the procedures by which such orders are Congressional Review Act (CRA) is amends 21 CFR part 1308 as follows: to be issued, the DEA believes that the inapplicable, as it applies only to rules. notice and comment requirements of the However, if this were a rule, pursuant PART 1308—SCHEDULES OF Administrative Procedure Act (APA) at to the CRA, ‘‘any rule for which an CONTROLLED SUBSTANCES 5 U.S.C. 553, do not apply to this agency for good cause finds that notice ■ 1. The authority citation for part 1308 temporary scheduling action. In the and public procedure thereon are continues to read as follows: alternative, even assuming that this impracticable, unnecessary, or contrary action might be subject to 5 U.S.C. 553, to the public interest, shall take effect at Authority: 21 U.S.C. 811, 812, 871(b), the Administrator finds that there is such time as the federal agency 956(b), unless otherwise noted. good cause to forgo the notice and promulgating the rule determines.’’ 5 ■ 2. In § 1308.11, add paragraphs (h)(23) comment requirements of 5 U.S.C. 553, U.S.C. 808(2). It is in the public interest through (29) to read as follows: as any further delays in the process for to schedule these substances issuance of temporary scheduling orders immediately to avoid an imminent § 1308.11 Schedule I. would be impracticable and contrary to hazard to the public safety. This * * * * * the public interest in view of the temporary scheduling action is taken (h) * * *

(23) N-(1-phenethylpiperidin-4-yl)-N-phenylpentanamide, its isomers, esters, ethers, salts and salts of isomers, esters and ethers (Other name: valeryl fentanyl) ...... (9804) (24) N-(4-fluorophenyl)-N-(1-phenethylpiperidin-4-yl)butyramide, its isomers, esters, ethers, salts and salts of isomers, esters and ethers (Other name: para-fluorobutyryl fentanyl) ...... (9823) (25) N-(4-methoxyphenyl)-N-(1-phenethylpiperidin-4-yl)butyramide, its isomers, esters, ethers, salts and salts of isomers, esters and ethers (Other name: para-methoxybutyryl fentanyl) ...... (9837) (26) N-(4-chlorophenyl)-N-(1-phenethylpiperidin-4-yl)isobutyramide, its isomers, esters, ethers, salts and salts of isomers, esters and ethers (Other name: para-chloroisobutyryl fentanyl) ...... (9826) (27) N-(1-phenethylpiperidin-4-yl)-N-phenylisobutyramide, its isomers, esters, ethers, salts and salts of isomers, esters and ethers (Other name: isobutyryl fentanyl) ...... (9827) (28) N-(1-phenethylpiperidin-4-yl)-N-phenylcyclopentanecarboxamide, its isomers, esters, ethers, salts and salts of isomers, esters and ethers (Other name: cyclopentyl fentanyl) ...... (9847) (29) N-(2-fluorophenyl)-2-methoxy-N-(1-phenethylpiperidin-4-yl)acetamide, its isomers, esters, ethers, salts and salts of iso- mers, esters and ethers (Other name: ocfentanil) ...... (9832)

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Dated: January 26, 2018. position. The current operating IV. Ordering Paragraphs Robert W. Patterson, schedule is set out in 33 CFR 117.5. I. Introduction Acting Administrator. Under this temporary deviation, the [FR Doc. 2018–02008 Filed 1–31–18; 8:45 am] bridge will be in the closed-to- In this Order, the Commission adopts BILLING CODE 4410–09–P navigation position between 7 a.m. on a final rule concerning mail preparation February 26, 2018, through 7 p.m. on changes. The final rule adopted by this March 12, 2018. Order amends an existing Commission DEPARTMENT OF HOMELAND The Beach Thorofare is used by a rule located at 39 CFR part 3010.1 The SECURITY variety of vessels including recreational rule as adopted incorporates suggestions vessels. The Coast Guard has carefully presented by commenters that include Coast Guard coordinated the restrictions with slight modifications to the rule as waterway users in publishing this proposed, but do not materially affect its 33 CFR Part 117 temporary deviation. substance. Vessels able to pass through the [Docket No. USCG–2018–0033] bridge in the closed-to-navigation II. Background position may do so at any time. The Drawbridge Operation Regulation; New The Commission is charged with bridge will not be able to open for Jersey Intracoastal Waterway, Beach enforcing its price cap rules, which emergencies and there is no immediate Thorofare, Margate City, NJ require that the Postal Service make alternative route for vessels unable to reasonable adjustments to its billing AGENCY: Coast Guard, DHS. pass through the bridge in the closed determinants to account for the effects ACTION: Notice of deviation from position. The Coast Guard will also of classification changes such as the drawbridge regulation. inform the users of the waterway introduction, deletion, or redefinition of through our Local and Broadcast SUMMARY: The Coast Guard has issued a rate cells. See 39 CFR 3010.23(d)(2). Notices to Mariners of the change in Under § 3010.23(d)(2), these temporary deviation from the operating operating schedule for the bridge, so schedule that governs the Margate classification changes can include that vessel operators can arrange their changes to mail preparation Boulevard/Margate Bridge which carries transits to minimize any impact caused Margate Boulevard across the New requirements made by the Postal by the temporary deviation. Service. In Docket No. R2013–10R, the Jersey Intracoastal Waterway, Beach In accordance with 33 CFR 117.35(e), Commission articulated a standard Thorofare, mile 74.0, at Margate City, the drawbridge must return to its regular governing when mail preparation NJ. The deviation is necessary to operating schedule immediately at the changes result in the deletion or facilitate bridge maintenance. This end of the effective period of this redefinition of rate cells under deviation allows the bridge to remain in temporary deviation. This deviation § 3010.23(d)(2) of the price cap rules.2 the closed-to-navigation position. from the operating regulations is DATES: The deviation is effective from 7 authorized under 33 CFR 117.35. After setting forth the standard applied to mail preparation a.m. on Monday, February 26, 2018, Dated: January 26, 2018. through 7 p.m. on Monday, March 12, requirements, the Commission Hal R. Pitts, 2018. instituted the present rulemaking ‘‘to Bridge Program Manager, Fifth Coast Guard create rules for the process and ADDRESSES: The docket for this District. deviation, [USCG–2018–0033] is timeframes for the regulation of mail [FR Doc. 2018–01981 Filed 1–31–18; 8:45 am] available at http://www.regulations.gov. preparation requirement changes.’’ 3 As Type the docket number in the BILLING CODE 9110–04–P discussed below, the Commission ‘‘SEARCH’’ box and click ‘‘SEARCH’’. issued an initial proposed rule that was Click on Open Docket Folder on the line associated with this deviation. POSTAL REGULATORY COMMISSION 1 On December 1, 2017, the Commission issued a Notice of Proposed Rulemaking in Docket No. FOR FURTHER INFORMATION CONTACT: If 39 CFR Part 3010 RM2017–3 that proposed replacing provisions of 39 you have questions on this temporary CFR part 3010 with new rules in new subparts. The deviation, call or email Mr. Michael [Docket No. RM2016–6; Order No. 4393] Commission issues this rule in part 3010 and any Thorogood, Bridge Administration changes to the rule’s location in the CFR will be Mail Preparation Changes made in the Docket No. RM2017–3 rulemaking. See Branch Fifth District, Coast Guard, Docket No. RM2017–3, Notice of Proposed telephone 757–398–6557, email AGENCY: Postal Regulatory Commission. Rulemaking for the System for Regulating Rates and [email protected]. ACTION: Final rule. Classes for Market Dominant Products, December 1, SUPPLEMENTARY INFORMATION: 2017 (Order No. 4258). The notice of proposed The Ole rulemaking was published in the Federal Register Hansen and Sons, Inc., owner and SUMMARY: The Commission adopts a on December 11, 2017. See 82 FR 58280. operator of the Margate Boulevard/ final rule concerning mail preparation 2 Docket No. R2013–10R, Order Resolving Issues Margate Bridge that carries Margate changes. This Order amends an existing on Remand, January 22, 2016 (Order No. 3047). For Boulevard across the New Jersey Commission rule. a complete history of the underlying proceedings and the facts regarding the change to Full Service Intracoastal Waterway, Beach Thorofare, DATES: Effective March 5, 2018. Intelligent Mail barcoding (IMb) which precipitated mile 74.0, at Margate City, NJ, has FOR FURTHER INFORMATION CONTACT: the need for a standard, see Docket No. R2013–10, requested a temporary deviation from David A. Trissell, General Counsel, at Order on Price Adjustments for Market Dominant the current operating schedule to Products and Related Mail Classification Changes, 202–789–6820. November 21, 2013, at 5–35 (Order No. 1890); Order facilitate maintenance of the structural SUPPLEMENTARY INFORMATION: No. 3047; Docket No. R2013–10R, Order Resolving steel and replacement of the structural Motion for Reconsideration of Commission Order steel support column of the double Table of Contents No. 3047, July 20, 2016 (Order No. 3441). bascule drawbridge. The bridge has a 3 Order No. 3047 at 21. See also id. at 59 (‘‘The I. Introduction Commission intends to also issue a rulemaking to vertical clearance of 14 feet above mean II. Background establish procedural rules setting forth the process high water in the closed position and III. Review of Proposed Rule and Analysis of governing mail preparation changes that require unlimited clearance in the open Comments price cap compliance.’’).

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later withdrawn and replaced with a statement of this affirmative burden in B. Revised Notice of Proposed revised proposed rule. the rule.5 Rulemaking A. Initial Notice of Proposed In proposing the initial rule, the On March 27, 2017, the Commission Rulemaking Commission explained that the issued a revised notice of proposed rulemaking (Revised NPR) which, in On January 22, 2016, the Commission ‘‘primary purpose of the rulemaking is response to comments on the Initial published a notice of proposed to ensure that the Postal Service NPR, withdrew the initial proposed rule rulemaking (Initial NPR) that proposed properly accounts for the rate effects of and proposed a revised rule. a procedural rule for issues concerning mail preparation changes under § 3010.23(d)(2) of this chapter in The Revised NPR proposed adding a compliance with the price cap rules for new section to the price cap rules, 4 accordance with the Commission’s mail preparation changes. The § 3010.23(d)(5). The revised proposed standard articulated in Order No. 3047.’’ Commission identified a need to amend rule creates a standardized reporting its rules to ‘‘ensure that the Postal Order No. 3048 at 1–2. The Commission process for mail preparation changes Service properly accounts for the rate stated that it also intended to and memorializes the Postal Service’s effects of mail preparation changes’’ ‘‘standardize the procedure and burden to demonstrate compliance with under § 3010.23(d)(2). Order No. 3048 timeframe by which interested parties the price cap. Specifically, the revised at 1. must file a motion with the Commission proposed rule requires that the Postal The Initial NPR proposed adding a when they contend that a mail Service publish notice of all mail new section under the Commission’s preparation change has a rate effect preparation changes in a single, publicly existing general motion rule that would requiring compliance with the price cap available source. Order No. 3827 at 13– create a separate motion procedure rules.’’ Id. at 2. The Initial NPR was 14. Under the revised rule, the Postal dedicated to compliance issues for mail intended to provide ‘‘an avenue for Service must file notice with the preparation changes. Id. at 3–4. The Commission designating the source it initial proposed rule defined motions interested parties to raise the possibility will use to provide public notice. Id. concerning mail preparation changes as that the Postal Service may have erred ‘‘challenges to instances where an by failing to account for the price cap The revised proposed rule also requires announced mail preparation change impact of a mail preparation change.’’ the Postal Service to affirmatively state does not contain a Postal Service Id. at 5. whether or not the mail preparation change requires compliance with indication that the change has a rate In response to the Initial NPR, the effect requiring compliance with § 3010.23(d)(2). Id. If the Postal Commission received numerous Service’s determination of price cap § 3010.23(d)(2). . . .’’ Id. at 7. The comments that raised questions about Initial NPR proposed parameters for compliance is raised, the Postal Service the utility of creating a separate is required to demonstrate, by a motions specific to mail preparation procedural rule for motions concerning changes, including a filing deadline and preponderance of the evidence, that the mail preparation changes. Commenters mail preparation change at issue does grounds required for the motion. submitted concerns over how a separate Specifically, the Initial NPR proposed not require compliance with motion procedure would affect the that any motions concerning mail § 3010.23(d)(2). Commission’s authority and preparation changes were to be filed The revisions to the rule were made within 30 days of ‘‘actual or responsibility to independently review ‘‘to better target the specific goal of constructive notice of the mail preparations for compliance with ensuring that the Postal Service 6 implementation date of the change’’ and the price cap rules. Commenters also properly accounts for mail preparation were to contain a description of the raised questions concerning the requirement changes under change at issue and the ‘‘grounds by potential redundancy of the proposed § 3010.23(d)(2).’’ Id. at 11. The Revised which the mail preparation change must rule in light of the right to challenge the NPR withdrew the initial proposal to comply with § 3010.23(d)(2). . . .’’ Id. Postal Service’s compliance with the create a separate motion procedure for The filing deadline would be triggered price cap rules in existing proceedings issues concerning mail preparation by written notice of the implementation before the Commission. See id. at 3. changes. The Commission explained date of the mail preparation change by Commenters also suggested that it chose not to continue creating a the Postal Service. Id. at 3–4. The Postal modifications to the various procedural separate motion procedure specific to Service would be required to components set forth in the initial compliance issues for mail preparation changes based on its review of existing ‘‘affirmatively designate only those proposed rule, raising concerns with the procedures and practices and in changes that require compliance with notice provisions and the filing response to commenter concerns. See § 3010.23(d)(2)’’ when it provided deadline. See id. at 3–5. written notice of publication of the mail id. at 8–11. The Commission requested preparation change. Id. at 4. The Postal Service did not share the comments in response to the Revised Although the Initial NPR reiterated concerns of the majority of the NPR. the Commission’s previous explanation commenters. Instead, it suggested The Postal Service, the Public that the ‘‘Postal Service has the adding additional sections to the Representative, the Association for affirmative burden to determine proposed motion procedure, including Postal Commerce (PostCom), and the whether a mail preparation change discovery, meet and confer National Postal Policy Council, the requires compliance with requirements, and deadlines for National Association of Presort Mailers, § 3010.23(d)(2) under the Commission’s resolving motions. Id. at 5–6. and the Association for Mail Electronic standard in Order No. 3047,’’ the initial Enhancement (collectively NPPC et al.) rule did not propose including a 5 The revised notice of proposed rulemaking submitted comments in response to the (Revised NPR) was published in the Federal Revised NPR.7 4 The Initial NPR was published in the Federal Register on March 31, 2017. See 82 FR 16015. Register on February 1, 2016. See 81 FR 5085. Revised NPR, March 27, 2017, at 1–2, 7 (Order No. 7 Comments of the National Postal Policy Council, Notice of Proposed Rulemaking on Motions 3827). the National Association of Presort Mailers, and the Concerning Mail Preparation Changes, January 22, 6 Order No. 3827 at 2–3. The Commission refers Association for Mail Electronic Enhancement, May 2016, at 1–2 (Order No. 3048). to its response to the comments in Order No. 3827. 1, 2017 (NPPC et al. Comments); Public

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III. Review of Proposed Rule and the Postal Service post all of its mailing preparation changes.’’ PR Comments at Analysis of Comments regulation changes in one place.’’ Id. 7. The Public Representative is correct In this section, parts of the revised They state that the publication that the Commission’s proposed rule proposed rule that will be finalized are requirement should ‘‘greatly help the requires single source publication of all identified, briefly outlined, and Commission and mailers keep track of mail preparation changes, regardless of comments or issues relating to the rule mailing regulation changes between whether the changes are also noticed in are discussed and analyzed. market-dominant pricing adjustments.’’ additional sources. Therefore, the Id. Commission modifies the final rule to A. Publication Requirement In its comments to the Initial NPR, clarify that the rule requires publication The rule sets forth a requirement that PostCom proposed directing ‘‘the Postal of all mail preparation changes in a the Postal Service publish notice of all Service to identify a publication in single source as follows: ‘‘The Postal mail preparation changes in a single, which all mail preparation changes will Service shall file notice with the publicly available source. See Order No. be published.’’ 9 In its comments on the Commission of the single source it will 3827 at 13. The Postal Service shall file Revised NPR, PostCom notes that the use to provide published notice of all notice with the Commission of the proposed rule does not define the term mail preparation changes.’’ single source it will use to publish ‘‘mail preparation change’’ and With respect to the publication notice of all mail preparation changes. contends that ‘‘[w]hile there is nothing requirement, the Postal Service Id. The publication requirement also inherently problematic with failing to contends that the ‘‘Commission should requires an affirmative designation of define this term, it does create some decline to adopt the proposed ‘single whether or not the change will be uncertainty.’’ PostCom Comments at 1. source’ publication requirement.’’ Postal subject to § 3010.23(d)(2). Id. The PostCom specifically notes its concern Service Comments at 27. It states that it Commission analyzes and responds to that the Postal Service would decline to is ‘‘unclear what procedural purpose comments relevant to the publication publish notice of a mail preparation would be served by these new requirement. change because it could determine the requirements’’ and that it ‘‘already has In response to both the Initial and change does not relate to ‘‘mail strong business incentives to provide Revised NPR, commenters generally preparation.’’ Id. at 1–2. In light of this advance notice of upcoming changes, to expressed concern that it is difficult to concern, PostCom suggests that the help ensure that mailers can and will monitor the multiple sources used by Commission clarify in the final rule that comply with any new requirements in a the Postal Service to provide notice of the Commission ‘‘will still hear timely manner.’’ Id. at 25, 26. The Postal mail preparation changes. See id. at 6– challenges to changes that were not Service outlines the many ways in 7. The multiple sources of publication published in the specified source.’’ Id. which it communicates proposed make it ‘‘more difficult to know whether at 2. changes to mail preparation the real effects of mail preparation With respect to PostCom’s concern requirements, including at conferences changes affect the price cap.’’ 8 that the Postal Service may attempt to attended by various mailers, and Numerous commenters requested that avoid price cap compliance by failing to sources such as the Postal Bulletin and the Commission direct the Postal classify a change as a mail preparation the Federal Register. Id. at 26. The Service to identify a single publication change and, as a result, fail to provide Postal Service does not claim that it where all mail preparation changes will the requisite notice, the Commission would be burdensome or difficult to be published. Id. Requiring single submits that its existing procedures provide notice of all mail preparation changes in one source; rather, it source publication would allow both provide adequate recourse to deal with contends, ‘‘[n]otice was not the source mailers and the Commission ‘‘to more any issues concerning challenges to of the disagreement between the Postal easily monitor mail preparation changes changes that are not properly designated Service, the Commission, and the for price cap compliance’’ and alleviate or published in the specified source. mailers challenging the IMb the need for a separate motion Therefore, the Commission declines to requirements.’’ Id. at 27. Further, it procedure. Id. adopt PostCom’s suggested change in submits that no party has complained In their comments to the Initial NPR, the final rule. ‘‘that its ability to dispute the price-cap NPPC et al. supported single source In comments to the Initial NPR, the effects of mail preparation requirement publication of all mail preparation Public Representative supported changes. Initial NPPC et al. Comments changes has been hampered by where requiring the Postal Service file notice at 5. In their comments on the Revised and how the Postal Service gave notice of mail preparation changes in a single NPR, NPPC et al. find that the revised of the relevant changes.’’ Id. The Postal source.10 He submitted that, because the proposed rule represents a substantial Service also contends that the rule mail preparation changes are not improvement over the initial proposed requiring that the ‘‘Postal Service currently published in a single source, motion procedure and is an appropriate publish all such changes in a ‘single ‘‘the Commission is not in a position to response to its concerns. NPPC et al. source’ serves no relevant purpose’’ in review the effects of each mail Comments at 2. NPPC et al. state that the absence of a filing deadline for preparation change’’ and this creates a the publication requirement ‘‘will motions concerning mail preparation gap in regulatory coverage. Initial PR promote clarity and efficiency by having changes. Id. at 3. Comments at 6–7. In comments to the In response to the Postal Service’s Representative Comments on Revised Notice, May Revised NPR, he states that the question regarding the purpose of the 1, 2017 (PR Comments); United States Postal ‘‘Commission’s order should make clear single source publication requirement, Service Comments on Proposed Rules for Motions whether one particular publication (as the rule will provide standardized, Concerning Mail Preparation Changes, May 1, 2017 selected by the Postal Service) must (Postal Service Comments); Comments of the transparent reporting of mail Association for Postal Commerce, May 1, 2017 provide notification of all mail preparation changes to ensure (PostCom Comments). compliance with the price cap rules. 8 Order No. 3827 at 6 (citing Comments of the 9 Comments of the Association for Postal This information will enable the Commerce, September 2, 2016, at 5 (Initial PostCom National Postal Policy Council, the National Commission and the mailing Association of Presort Mailers, and the Association Comments). for Mail Electronic Enhancement, September 2, 10 Public Representatives Comments, September community to properly monitor the 2016, at 5 (Initial NPPC et al. Comments)). 2, 2016, at 6–7 (Initial PR Comments). changes to mail preparation

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requirements for price cap compliance. that provision requested that the that ‘‘[i]f the Commission nonetheless This rulemaking was initiated to add a Commission modify the requirement to decides to place the burden of proof on procedural component to the existing include an affirmative statement of the Postal Service, the Postal Service Commission rules in order to ensure whether or not the change required will need to develop a process for that the Postal Service ‘‘properly compliance with the price cap rules. obtaining cost information from accounts for the rate effects of mail Specifically, PostCom submitted that potentially impacted mailers in order to preparation changes under ‘‘the Postal Service should provide an determine the amount of compliance § 3010.23(d)(2).’’ Order No. 3048 at 1. affirmative statement of no price impact, costs that a given change might impose Although the Postal Service states that providing clarity for mailers and no on the mailing community.’’ Id. at 2–3. it has a business incentive to provide additional burden on the Postal Service The Postal Service further claims that notice of mail preparation changes, in light of their affirmative duty to make the rule is unfairly ‘‘assigning the price cap compliance is an obligation the initial determination.’’ 12 The Postal burden of proof.’’ Id. at 14. that exists independent of any business Service did not oppose the affirmative The Postal Service also claims that the incentive the Postal Service may have designation requirement in the Initial evidentiary burden provision is unfair for its actions. Without a standardized NPR and does not comment specifically based on its pending appeal of the process for reporting changes to mail on the modified designation underlying substantive standard preparation requirements, it is difficult requirement in the Revised NPR, except applying § 3010.23(d)(2) to mail to monitor the multitude of mail to state that it opposes all changes in the preparation changes. Id. at 19. The preparation changes made by the Postal Revised NPR. Postal Service Comments Postal Service maintains that the Service for purposes of ensuring price at 5. substantive standard set forth in Order cap compliance. As it remains the Postal Service’s No. 3047 and reiterated in Order No. As previously stated, the Postal obligation to review all of its mail 3441 fails to provide clarity and that the Service provides notice of changes to preparation changes for compliance Commission ‘‘should suspend further mail preparation requirements in many with § 3010.23(d)(2), the rule maintains work on the rulemaking until the DC different sources including the ‘‘Federal the requirement that the Postal Service Circuit has completed its review of the Register, Postal Bulletin, and on the provide an affirmative statement of its substantive standard.’’ Id. RIBBS website.’’ 11 As the Postal Service determination for each mail preparation The Postal Service claims that its admits that it already provides notice of change that it does or does not require complaints regarding confusion over changes to mail preparation compliance with § 3010.23(d)(2). application of the standard are relevant requirements in a variety of formats and to the evidentiary standard set forth in B. Evidentiary Burden sources, it should not be burdensome the current rulemaking because it is for it to comply with the single source In addition to the publication confused over ‘‘what, exactly, it is publication requirements. Further, this requirement, the rule provides that, ‘‘[i]f asking the Postal Service to prove.’’ Id. rule does not interfere with parties’ raised by the Commission or challenged at 22. The Postal Service repeats its current rights to challenge the Postal by a mailer, the Postal Service must substantive argument regarding its Service’s compliance with the price cap demonstrate, by a preponderance of the objections to the redefinition prong of the Commission’s standard and states rules in existing Commission evidence, that a mail preparation change that it ‘‘does not have comprehensive, proceedings and does not conflict with does not require compliance with verifiable information concerning the the Commission’s responsibility to paragraph (d)(2) of this section in any costs that any given mail preparation enforce the price cap rules. proceeding where compliance is at Accordingly, the Commission finds it issue.’’ Order No. 3827 at 13–14. change will collectively impose on the impacted mailer.’’ Id. at 22–23. It appropriate to maintain the publication In response to the Revised NPR, NPPC contends that as a result, the requirement in the final rule, with the et al. submit that ‘‘the revised proposal Commission is ‘‘[p]assing the fact- slight modification described above, correctly makes clear that, if a question gathering burden onto the Postal because it will provide important notice arises (which has seldom occurred over Service’’ and undermining the purpose to both the mailers and the Commission the past decade) the Postal Service bears of the rulemaking which it characterizes of mail preparation changes that could the burden of proof that a mail as establishing a ‘‘ ‘streamlined’ process potentially implicate the price cap. preparation requirement change does that would allow the Postal Service to In addition to publication in a single not require compliance with section implement mail preparation changes source, the rule requires the Postal 3010.23(d)(2) of the Commission’s ‘with minimal disruption,’ and that Service to affirmatively designate rules.’’ NPPC et al. Comments at 2. would not stay implementation of a whether or not the individual mail NPPC et al. contend that the ‘‘revised mail preparation change that is the preparation change requires compliance proposal properly emphasizes that the Postal Service bears the obligation to subject of a motion.’’ Id. at 23. with § 3010.23(d)(2). Although the In response to the Postal Service’s comply with the price cap regulations Commission did not receive comments concerns over the evidentiary standard, and the Commission has primary specific to this revised affirmative the Commission submits that the enforcement authority.’’ Id. designation requirement in response to evidentiary burden in the final rule is the Revised NPR, a similar requirement The Postal Service objects to the evidentiary burden provision and the same burden that has existed was proposed in the Initial NPR. The throughout the PAEA era. It is the Postal submits that the burden of proof should initial rule proposed requiring an Service’s responsibility to ‘‘apply a good be placed on the ‘‘proponent that asserts affirmative designation for only those faith analysis to make the preliminary that a particular mail preparation instances where the mail preparation determination of whether a mail change constitutes a change in rates change required compliance with the preparation requirement change will because it redefines a price cell.’’ Postal price cap rules. Comments received on result in either the deletion or Service Comments at 2, 15–16. It states redefinition of a rate cell.’’ Order No. 11 Order No. 3048 at 3. Since the publication of the Initial NPR, the RIBBS website has transitioned 12 Order No. 3827 at 7(citing Initial PostCom 3047 at 20. If it determines that a mail to PostalPro. See https://ribbs.usps.gov; https:// Comments at 7); see also e.g., Initial PR Comments preparation ‘‘change has deleted or postalpro.usps.com. at 6–8; Initial NPPC et al. Comments at 8–11. redefined a rate cell then it must comply

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with the price cap rule under preparation changes. Order No. 3047 at a mail preparation change in order to [§ 3010.23(d)(2)] and account for the rate 2, 9–10. The final rule sets up a determine whether the price cap effects of the change.’’ Id. Accordingly, procedure for reporting mail preparation applies, it may file a motion with the as explained in Order No. 3047, the changes, requires a designation of Commission. As discussed in more Postal Service has the ‘‘affirmative whether or not the change implicates detail below, see infra section III.C., the burden to determine whether changes to the price cap, and formalizes the Postal Commission’s general motion practice mail preparation have a rate effect with Service’s burden to comply with the rules provide an avenue for the Postal price cap implications in accordance price cap; the rule does not incorporate Service to request a determination from with the Commission’s standard and the substantive standard. In the event the Commission on whether a specific [§ 3010.23(d)(2)].’’ Id. the standard is later modified, the rule mail preparation change will trigger In response to the Postal Service’s would remain as a procedural compliance with the price cap under contention that the Commission’s mechanism to identify mail preparation § 3010.23(d)(2). failure to explain its standard and how changes that may have rate With respect to the Postal Service’s it is to be applied to future cases should implications, and provide an avenue for concern that the lack of discovery will prevent the rulemaking from moving parties to raise the issue of whether a prevent it from satisfying its burden of forward, the Commission points to its change has such implications, and proof, the Commission responds that responses to the Postal Service’s would apply regardless of the appellate discovery is always available in arguments concerning the substantive outcome. Commission proceedings where it is standard in Order Nos. 3047 and 3441. The Postal Service also points to ‘‘reasonably calculated to lead to In Order No. 3441, the Commission Order No. 3827, the Revised NPR, and admissible evidence during a explained: contends that statements made in that proceeding.’’ See, e.g., 39 CFR 3001.86. The Commission has traditionally Although the Postal Service claims that the order contradict the Commission’s Commission ‘‘fail[ed] to respond’’ to the standard set forth in Order No. 3047. declined to make discovery a right in Court’s holding that the Commission must The Postal Service submits that the proceedings, as it ‘‘could take away the explain its standard, the Commission Commission, in Order No. 3827, Commission’s ability to adapt review provided a detailed explanation of the ‘‘maintains that a mail preparation procedures to fit the underlying issues standard, parameters of the standard, and change is subject to the price cap when presented.’’ 16 As the Commission application of the standard. Order No. 3047 it functionally ‘eliminates’ a rate.’’ explained in the Revised NPR, in the at 13–31. The Commission cannot provide Postal Service Comments at 20. It claims situation where compliance with the explanation of abstract hypothetical changes that this statement contradicts the price cap is at issue ‘‘the specific the Postal Service may make in the future, as evidence presented will be largely fact those issues and facts are not currently before Commission’s position on appeal and the Commission. However, despite the fact contends that ‘‘the Commission’s brief dependent subject to the individual that this standard is to be applied on a case- in the DC Circuit acknowledged that the circumstances of the matter and the by-case basis, the Commission provided an elimination of a rate does not address Postal Service’s showing will be explanation of how the standard would be whether mailers will be forced to pay evaluated based on the evidence applied, and set forth the parameters of such higher prices.’’ Id. Although this available at the time.’’ Order No. 3827 application so that the Postal Service and comment addresses the substance of the at 9. If issues arise that cannot be interested parties would have sufficient standard as opposed to the rule, the resolved within the existing procedures guidance in the future. See id. at 15–31. Commission responds in order to or require discovery, in line with past Order No. 3441 at 11. correct the Postal Service’s practice, the Commission retains the The Commission has previously mischaracterization. The functional flexibility to tailor the proceedings declined the Postal Service’s motion to elimination of a rate is a deletion under accordingly to fit the issue and any suspend this rulemaking proceeding § 3010.23(d)(2) and once it is clear that party may file a request for discovery. pending resolution of the Postal a rate has been deleted; the effect of that Therefore, the Commission declines to Service’s Petition for Review before the deletion is calculated pursuant to the modify the rule to institute discovery as DC Circuit Court of Appeals.13 The price cap rules. Section 3010.23(d)(2) a matter-of-right. Commission again declines to suspend represents the first step in a two-part However, the Commission agrees with this proceeding. As previously stated, process for price cap compliance; it the Postal Service’s suggestion that the the Postal Service’s comments simply determines whether the price cap rule also codify the requirement that a repeat ‘‘the Postal Service’s arguments applies. Once that determination has ‘‘challenging party should provide in disagreement with the Commission’s been made under § 3010.23(d)(2), the relevant evidence to rebut the Postal substantive standard articulated in remaining subparts of § 3010.23(d) are Service’s initial determination that the Order Nos. 3047 and 3441 and [do] not utilized to determine the rate effect of price cap does not apply.’’ Postal provide any justification to warrant a the change. In this second step, Service Comments at 18. Parties stay.’’ 14 Moreover, the final rule will depending on the calculation, the rate requesting relief before the Commission not be affected should the Court effect could represent a rate increase, based on the Postal Service’s action or disagree with the Commission’s decrease, or have zero effect.15 These inaction must always provide the standard articulated in Order No. 3047 facts are acknowledged by both Order requisite support for their position. In because, should the standard be No. 3827 and the Commission’s brief in addition to the rules prescribed for modified, the Court affirmed the the DC Circuit Court of Appeals and do specific proceedings, § 3001.11 of this Commission’s authority to regulate mail not represent the contradiction claimed chapter provides that the necessary preparation changes under the price cap by the Postal Service. contents of documents that do not rules and this rule sets a procedure for Moreover, if the Postal Service is pertain to a specific rule, regulation, or reporting and monitoring mail unsure how to apply § 3010.23(d)(2) to Commission Order. See 39 CFR 3001.11(c). Accordingly, the 13 Order Denying Motion, April 28, 2017 (Order 15 Order No. 3047 only concerned the first step in No. 3879). this two-part process; whether a mail preparation 16 Docket No. RM2008–4, Notice of Final Rule 14 Order No. 3879 at 2; see Postal Service change was subject to the price cap applying Prescribing Form and Content of Periodic Reports, Comments at 19–25. § 3010.23(d)(2). April 16, 2009, at 12 (Order No. 203).

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Commission modifies the final rule to mail preparation change is not a rate about predictability, or acknowledges include the contents necessary to change.’’ PR Comments at 6. He the Commission’s prior statements challenge a Postal Service determination concludes that the rule will ‘‘close a explaining that the goal of this concerning a mail preparation change. potentially significant regulatory gap in proceeding would be to allay those The Public Representative also the original proposal’’ by ‘‘providing for concerns.’’ Postal Service Comments at suggests a slight modification to the last a method to sufficiently alert the 10. sentence of the proposed rule to clarify Commission and other interested parties The Postal Service also claims that the that ‘‘raised by the Commission’’ is about mail preparation changes.’’ Id. at revised rule ‘‘strips the rule of its intended to cover situations where the 4, 5. He notes that the revised location critical procedural protection: the 30- Commission independently questions of the rule in part 3010 ‘‘will be more day filing deadline.’’ Id. at 9. The Postal the Postal Service’s compliance with readily appreciated and that interested Service explains that it is concerned § 3010.23(d)(2). PR Comments at 7. The parties will be more likely to recognize that ‘‘[i]f mailers are permitted to raise Commission avers that the word that they may challenge the Postal objections to mail preparation changes ‘‘raised’’ appropriately covers all Service’s conclusions regarding under the substantive standard at any situations where compliance issues for compliance with paragraph (d)(2) of that time, regardless of how much time has mail preparation changes may be section.’’ Id. at 6. passed since the Postal Service provided questioned by the Commission. The Postal Service seeks to have the notice of the change or the stage of However, the Commission makes a Commission reinstate the initial implementation that the change is in, slight modification to apply the term proposed motion rule with then the present rulemaking completely ‘‘raised’’ to challenges by the modifications. Postal Service Comments fails to protect against unpredictable Commission or any other party in order at 2. Specifically, the Postal Service impacts on the Postal Service’s pricing to simplify the language in the rule. requests that the Commission reinstate: authority.’’ Id. at 9–10. Accordingly, final rule § 3010.23(d)(5) In response to the Postal Service’s [T]he 30-day filing deadline for motions comments, the Commission declines to incorporates the slight modifications challenging the Postal Service’s initial described. determination that a mail preparation change create a separate motion procedure for mail preparation changes because C. Motion Procedure does not implicate the price cap, adopt the additional procedural provisions requested ‘‘existing procedures available to As explained above, the final rule by the Postal Service in its initial Comments, interested parties should be sufficient to creates a process where the Postal and place the burden of proving ‘significant’ raise issues of price cap compliance for Service will be required to provide mailer costs on the proponent that asserts mail preparation changes.’’ Order No. published notice of all mail preparation that a particular mail preparation change 3827 at 10. As the Commission changes in a single source with a constitutes a change in rates because it previously explained: redefines a price cell. designation of whether or not each Mailers may notify the Commission using change requires compliance with Id. (internal citations omitted). the general motion procedures set forth in § 3010.23(d)(2). The rule also The Postal Service contends that, § 3001.21 of this chapter if they disagree with memorializes the Postal Service’s without a separate procedure specific to the Postal Service’s determination of burden to demonstrate compliance with mail preparation changes, it ‘‘must rely compliance with § 3010.23(d)(2). The rules the price cap rules for any issues arising on impacted mailers to come forward under § 3001.21 of this chapter require from its designation of a mail with evidence concerning the extent of motions to ‘‘set forth with particularity the preparation change. The rule does not compliance costs that a mail preparation ruling or relief sought, the grounds and basis change will impose, and without any therefore, and the statutory or other authority create a separate motion procedure for relied upon . . .’’ Accordingly, any motions issues concerning mail preparation defined process to insure that they do so filed under § 3001.21 of this chapter changes as originally contemplated. The accurately and completely.’’ Id. at 23. It concerning mail preparation changes shall Commission analyzes and responds to claims that ‘‘[t]he Commission’s provide all information the mailers have to comments relevant to the withdrawal of proposal does not meaningfully address rebut the Postal Service’s determination, the motion procedure. that problem.’’ Id. consistent with the Commission’s standard NPPC et al. agree with the The Postal Service claims that the set forth in Order No. 3047. Commission that ‘‘existing procedures Commission revised the proposed rule Id. Moreover, as the rule relates to should be sufficient to allow interested ‘‘without meaningful explanation,’’ yet ensuring that the Postal Service is parties to raise issues of price cap it also acknowledges that the complying with the price cap rules, it is compliance for mail preparation Commission explained that ‘‘its existing in line with the objectives and factors of changes.’’ NPPC et al. Comments at 3. procedures ‘should be sufficient to raise the PAEA. However, NPPC et al. contend that the issues of price cap compliance for mail In response to the Postal Service’s ‘‘new procedures in the revised preparation changes,’ that creating concern that it would be subject to late proposal will make recourse to the additional procedures would be objections to its determination that a existing procedures rarely necessary.’’ ‘redundant,’ and that the revised change does not impact the price cap, Id. PostCom submits that the ‘‘revised proposed rule is meant ‘to better target the Postal Service may file a motion procedures are superior to those the specific goal of ensuring that the with the Commission and ‘‘seek a previously proposed’’ and ‘‘commends Postal Service properly accounts for determination from the Commission [on the Commission for its thoughtful mail preparation requirement changes the price cap impact of the change] consideration of the comments under § 3010.23(d)(2).’ ’’ 17 The Postal using the procedures set forth under submitted on its previous proposal.’’ Service’s specific complaints with § 3001.21 of this chapter prior to PostCom Comments at 1. respect to the Commission’s explanation implementation of the change.’’ Id. at 9. As noted by the Public of the rule are that it fails to explain Therefore, both mailers and the Postal Representative, by withdrawing the how ‘‘the revised proposed rule Service may use existing procedures to motion procedure and associated filing comports with the statutory criteria and resolve issues concerning the price cap deadline, the revised rule ‘‘permits addresses the Postal Service’s concerns impact of a mail preparation change. interested persons to challenge at any In response to the Postal Service’s time a Postal Service’s decision that a 17 Id. at 9, 10 (citing Order No. 3827 at 10–11). contention that the revised rule ignores

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the primary reason for instituting the process has accommodated nearly all with paragraph (d)(2) of this section. If rulemaking, the main purpose of the changes to mail preparation the Postal Service’s determination rule was to ‘‘ensure that the Postal requirements that require compliance regarding compliance with paragraph Service properly accounts for the rate with the price cap rules over the past (d)(2) of this section is raised by the effects of mail preparation changes decade without issue.19 The Commission or any other party, the under § 3010.23(d)(2) of this chapter in Commission’s standard, articulated in Postal Service must demonstrate, by a accordance with the Commission’s Order No. 3047, does not disrupt this preponderance of the evidence, that a standard articulated in Order No. 3047.’’ process and the Commission finds that mail preparation change does not Order No. 3048 at 1–2. In accomplishing a separate motion procedure with require compliance with paragraph that goal, the Commission initially deadlines outside of the rate adjustment (d)(2) of this section in any proceeding sought to create a more efficient process proceedings would conflict with the where compliance is at issue. In any that improved upon existing procedures existing rules governing compliance challenge to the Postal Service’s by proposing a new motion procedure with the price cap rules. determination concerning a mail specific to compliance issues for mail preparation change, the challenging IV. Ordering Paragraphs preparation changes. However, based on party shall provide all information to its review of comments and further It is ordered: rebut the Postal Service’s determination analysis, the Commission determined 1. Part 3010 of title 39, Code of that the change is not subject to the that any additional motion rule would Federal Regulations, is revised as set price cap. add potential inefficient redundancies. forth below the signature of this order, * * * * * A separate motion practice would be an effective 30 days after publication in the [FR Doc. 2018–01810 Filed 1–31–18; 8:45 am] unnecessary addition to existing actions Federal Register. BILLING CODE 7710–FW–P that could include a comment filed in 2. The Secretary shall arrange for a rate adjustment proceeding alerting publication of this order in the Federal the Commission to the potential rate Register. ENVIRONMENTAL PROTECTION impact of a mail preparation change, a By the Commission. Postal Service request for an advance AGENCY Ruth Ann Abrams, determination on the rate impact of a 40 CFR Part 52 mail preparation change, an interested Acting Secretary. party’s motion to designate a mail List of Subjects in 39 CFR Part 3010 [EPA–R05–OAR–2016–0138; FRL–9973–48– preparation change as having a rate Administrative practice and Region 5] impact, or other relevant motions. In procedure, Postal Service. those actions, the Postal Service or any Air Plan Approval; Illinois; interested party is free to request For the reasons discussed in the Nonattainment Plans for the Lemont 18 discovery. Therefore, the Commission preamble, the Commission amends and Pekin SO2 Nonattainment Areas disagrees with the Postal Service’s chapter III of title 39 of the Code of comments that it needs to create a Federal Regulations as follows: AGENCY: Environmental Protection separate procedure specific to Agency (EPA). compliance issues for mail preparation PART 3010—REGULATION OF RATES ACTION: Final rule. changes and submits that the final rule FOR MARKET DOMINANT PRODUCTS SUMMARY: provides a more effective way of The Environmental Protection ■ 1. The authority citation of part 3010 ensuring the Postal Service complies Agency (EPA) is taking final action to continues to read as follows: with the price cap rules for mail approve State Implementation Plan preparation changes. Authority: 39 U.S.C. 503; 3662. (SIP) revisions, which Illinois submitted In addition to potential redundancies, ■ to EPA on March 2, 2016, and 2. Amend § 3010.23 by adding supplemented on August 8, 2016 and the Commission also found that a paragraph (d)(5) to read as follows: separate motion rule would conflict May 4, 2017, for attaining the 2010 1- with existing procedures. See Order No. § 3010.23 Calculation of percentage hour sulfur dioxide (SO2) primary 3827 at 10. For example, in a rate change in rates. national ambient air quality standard adjustment proceeding, the * * * * * (NAAQS) for the Lemont and Pekin Commission’s rules request participants (d) * * * areas. These revisions (herein called the focus their comments on whether the (5) Procedures for mail preparation nonattainment plans or plans) include Postal Service’s planned rate adjustment changes. The Postal Service shall Illinois’ attainment demonstration and complies with the price cap rules. 39 provide published notice of all mail other elements required under the Clean CFR 3010.11(b)(1)–(2). The Commission preparation changes in a single, publicly Air Act (CAA) for the two areas. In must then determine whether the available source. The Postal Service addition to an attainment planned rate adjustments are consistent shall file notice with the Commission of demonstration, the plans address: The with the annual limitation and the single source it will use to provide requirement for meeting reasonable applicable law. 39 CFR 3010.11(d). This published notice of all mail preparation further progress (RFP) toward changes. When providing notice of a attainment of the NAAQS; reasonably 18 As previously discussed, under the PAEA, the mail preparation change, the Postal available control measures and Commission retains discretion to order or permit Service shall affirmatively state whether reasonably available control technology discovery, in part due to the ‘‘extremely (RACM/RACT); emission inventories; compressed time schedules under which or not the change requires compliance compliance review must be conducted.’’ Order No. and contingency measures. EPA further 203 at 55. In most cases, the Commission functions 19 In Docket No. R2013–10R, although the Postal concludes that Illinois has demonstrated as a gatekeeper for limited discovery—where parties Service contended that the Full Service IMb that the plans’ provisions provide for request the Commission to propound specific requirement was not a rate change, the Postal attainment of the 2010 1-hour primary questions or requests on participants. This Service did not argue that it was unaware of the gatekeeper role filters discovery requests that may significance of the change compared to its more SO2 NAAQS in the Lemont and Pekin be untimely, irrelevant, intended as a leveraging routine mail preparation changes. See Order No. areas by the attainment date of October tactic, or simply abusive. 3047 at 21, 26–27. 4, 2018. EPA proposed this action on

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October 5, 2017 and received one public proposed rulemaking, the first section oil, and EPA’s conclusion that these comment in response. identified EPA’s action designating the limits were enforceable and approvable. DATES: This final rule is effective on Lemont and Pekin areas as The fifth section of the proposal March 5, 2018. nonattainment, thereby triggering a explained how Illinois’ plans satisfied ADDRESSES: EPA has established a requirement for Illinois to develop other nonattainment planning docket for this action under Docket ID nonattainment plans for the areas. requirements, including requirements No. EPA–R05–OAR–2016–0138. All The second section of the proposal for a comprehensive emission documents in the docket are listed on provided an extensive discussion of inventory, RACM/RACT, an adequate EPA’s guidance on the requirements the www.regulations.gov website. new source review program, RFP, and that SO nonattainment plans must meet Although listed in the index, some 2 contingency measures. in order to obtain approval by EPA, The sixth section of the proposal information is not publicly available, including requirements to: Submit an summarized EPA’s proposed action, i.e., Confidential Business Information emission inventory; provide for namely that EPA proposed to approve (CBI) or other information whose attainment; provide for reasonable Illinois’ plans and the emission limits in disclosure is restricted by statute. further progress (RFP); implement the underlying rules. Certain other material, such as RACM (including RACT); implement a The seventh section of the proposal copyrighted material, is not placed on new source permit program; and identified the rules that EPA was the internet and will be publicly provide contingency measures. Of proposing to approve, and the eighth available only in hard copy form. particular note, the proposal discussed section contained EPA’s review of Publicly available docket materials are the circumstances under which EPA statutory requirements and executive available either through expects to find that a plan that includes orders applicable to the proposed www.regulations.gov or at the emission limits with averaging times of rulemaking. Environmental Protection Agency, up to 30 days adequately provides for II. What comments did EPA receive, Region 5, Air and Radiation Division, 77 attainment of the 1-hour NAAQS. West Jackson Boulevard, Chicago, The third section of the proposed and what are EPA’s responses? Illinois 60604. This facility is open from rulemaking discussed EPA’s review of In response to the proposed 8:30 a.m. to 4:30 p.m., Monday through Illinois’ demonstration that its plans rulemaking, EPA received one comment Friday, excluding Federal holidays. We provide for attainment in the Lemont letter, from Midwest Generation, LLC, recommend that you telephone John and Pekin areas. This section discussed dated November 6, 2017. The Summerhays, Environmental Scientist, the use of the atmospheric dispersion commenter indicated that it supports at (312) 886–6067 before visiting the model known as AERMOD, the EPA’s proposed rulemaking, provided Region 5 office. meteorological and emissions data used SO2 air quality data for the Lemont and FOR FURTHER INFORMATION CONTACT: John in the analysis, the emission limits that Pekin areas from 2013 through August Summerhays, Environmental Scientist, Illinois relied on, and the background 2017, and commented that ‘‘because Attainment Planning and Maintenance concentrations that Illinois used. This significant SO2 emission reductions Section, Air Programs Branch (AR–18J), included a discussion of Illinois’ use of have already occurred in the designated Environmental Protection Agency, a 30-day average emission limit for the non-attainment areas, the Illinois EPA Region 5, 77 West Jackson Boulevard, Powerton Generating Station will soon be authorized to submit a Chicago, Illinois 60604, (312) 886–6067, (Powerton), operated by Midwest ‘clean data’ petition to U.S. EPA for the [email protected]. Generation, LLC, which is located in the ambient air monitoring sites that were SUPPLEMENTARY INFORMATION: This Pekin area. Illinois set this limit at a the basis for the non-attainment supplementary information section is level of about 58 percent of the level of designations.’’ arranged as follows: the 1-hour limit that Illinois found These comments, which support would have provided for attainment, I. What action did EPA propose and why? EPA’s action, do not require any II. What comments did EPA receive, and and which Illinois supplemented with a reassessment of the proposed what are EPA’s responses? requirement that Powerton have less rulemaking. Additionally, the proposed III. What action is EPA taking? than five percent of the hours in any 30- action did not address whether the IV. Incorporation by Reference day period exceeding the 1-hour Lemont and Pekin areas (at the V. Statutory and Executive Order Reviews emission limit that Illinois otherwise monitoring sites and elsewhere) are would have set. EPA also evaluated I. What action did EPA propose and currently attaining the SO2 standard; comments that Sierra Club submitted why? rather, the action evaluated Illinois’ during the State’s rulemaking process, nonattainment plans for areas and On October 5, 2017, at 82 FR 46434, including comments related to the proposed to find that those plans will EPA proposed to approve Illinois’ proposed emission limit for Powerton. provide for attainment. Therefore, the nonattainment plans for the Lemont and Finally, this section summarized EPA’s comments related to recent air quality Pekin SO2 nonattainment areas. These review of Illinois’ attainment monitoring data for the areas are not areas had been designated demonstration, concluding that Illinois’ relevant to this rulemaking. nonattainment on August 5, 2013, proposed limit for Powerton, as triggering a requirement for Illinois to supplemented, was comparably III. What action is EPA taking? submit plans to provide for attainment stringent to the 1-hour limit that would EPA is taking final action to approve and to address other requirements under have been necessary to provide for Illinois’ submission as a SIP revision, CAA sections 110, 172, and 192. Illinois attainment in accordance with EPA’s which the state submitted to EPA on submitted nonattainment plans for these guidance, and finding more generally March 2, 2016, and supplemented on areas on March 2, 2016, and submitted that Illinois adequately demonstrated August 8, 2016, and May 4, 2017, for supplemental information on August 8, that its plans provided for attainment. attaining the 2010 1-hour SO2 NAAQS 2016 and May 4, 2017. The fourth section of the proposal for the Lemont and Pekin SO2 EPA’s proposed rulemaking provides contained EPA’s review of the rules nonattainment areas. further background on Illinois’ Illinois adopted to limit the sulfur These SO2 nonattainment plans submittal. Within the body of this content of residual and distillate fuel include Illinois’ attainment

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demonstrations for the Lemont and Director of the Federal Register in the In addition, the SIP is not approved 1 Pekin SO2 nonattainment areas. These next update to the SIP compilation. to apply on any Indian reservation land attainment demonstrations use or in any other area where EPA or an V. Statutory and Executive Order dispersion modeling to demonstrate that Indian tribe has demonstrated that a Reviews the emission limits that Illinois adopted tribe has jurisdiction. In those areas of into Title 35 part 214 of the Illinois Under the CAA, the Administrator is Indian country, the rule does not have Administrative Code and submitted for required to approve a SIP submission tribal implications and will not impose EPA approval provide for air quality that complies with the provisions of the substantial direct costs on tribal meeting the SO2 NAAQS. CAA and applicable Federal regulations. governments or preempt tribal law as These limits include a 30-day average 42 U.S.C. 7410(k); 40 CFR 52.02(a). specified by Executive Order 13175 (65 limit for the Powerton power plant in Thus, in reviewing SIP submissions, FR 67249, November 9, 2000). the Pekin area. Illinois’ modeling EPA’s role is to approve state choices, The Congressional Review Act, 5 demonstrated that a 1-hour limit of provided that they meet the criteria of U.S.C. 801 et seq., as added by the Small 6,000 pounds of SO2 per hour for this the CAA. Accordingly, this action Business Regulatory Enforcement facility, in conjunction with the other merely approves state law as meeting Fairness Act of 1996, generally provides limits that Illinois adopted and Federal requirements and does not that before a rule may take effect, the submitted or otherwise has in place, impose additional requirements beyond agency promulgating the rule must provide for attainment in this area. those imposed by state law. For that submit a rule report, which includes a Illinois demonstrated that a 30-day reason, this action: copy of the rule, to each House of the • average limit of 3,452 pounds per hour Is not a significant regulatory action Congress and to the Comptroller General is comparably stringent to a 1-hour limit subject to review by the Office of of the United States. EPA will submit a of 6,000 pounds per hour at this facility. Management and Budget under report containing this action and other Therefore, and for reasons discussed in Executive Orders 12866 (58 FR 51735, required information to the U.S. Senate, the proposed rulemaking, EPA finds October 4, 1993) and 13563 (76 FR 3821, the U.S. House of Representatives, and that the limits submitted by Illinois, January 21, 2011); the Comptroller General of the United • which for Powerton include a 30-day Is not an Executive Order 13771 (82 States prior to publication of the rule in average limit of 3,452 pounds per hour FR 9339, February 2, 2017) regulatory the Federal Register. A major rule supplemented by a requirement that action because SIP approvals are cannot take effect until 60 days after it emissions not exceed 6,000 pounds per exempted under Executive Order 12866; • is published in the Federal Register. hour for more than 5 percent of hours, Does not impose an information This action is not a ‘‘major rule’’ as provide for attainment of the 1-hour SO2 collection burden under the provisions defined by 5 U.S.C. 804(2). NAAQS. of the Paperwork Reduction Act (44 Under section 307(b)(1) of the CAA, These nonattainment plans also U.S.C. 3501 et seq.); petitions for judicial review of this satisfy requirements for emission • Is certified as not having a action must be filed in the United States inventories, RACT/RACM, RFP, and significant economic impact on a Court of Appeals for the appropriate contingency measures. Additionally, substantial number of small entities circuit by April 2, 2018. Filing a petition Illinois has previously addressed under the Regulatory Flexibility Act (5 for reconsideration by the Administrator requirements regarding nonattainment U.S.C. 601 et seq.); of this final rule does not affect the area new source review. Therefore, EPA • Does not contain any unfunded finality of this action for the purposes of has determined that Illinois’ SO2 mandate or significantly or uniquely judicial review nor does it extend the nonattainment plans meet the affect small governments, as described time within which a petition for judicial applicable requirements of CAA in the Unfunded Mandates Reform Act review may be filed, and shall not sections 110, 172, and 192. of 1995 (Pub. L. 104–4); • postpone the effectiveness of such rule IV. Incorporation by Reference Does not have Federalism implications as specified in Executive or action. This action may not be In this rule, EPA is finalizing Order 13132 (64 FR 43255, August 10, challenged later in proceedings to regulatory text that includes 1999); enforce its requirements. (See section incorporation by reference. In • Is not an economically significant 307(b)(2).) accordance with requirements of 1 CFR regulatory action based on health or List of Subjects in 40 CFR Part 52 51.5, EPA is finalizing the incorporation safety risks subject to Executive Order Environmental protection, Air by reference of the Illinois Regulations 13045 (62 FR 19885, April 23, 1997); described in the amendments to 40 CFR • Is not a significant regulatory action pollution control, Incorporation by part 52 set forth below. EPA has made, subject to Executive Order 13211 (66 FR reference, Intergovernmental relations, and will continue to make, these 28355, May 22, 2001); Reporting and recordkeeping documents generally available through • Is not subject to requirements of requirements, Sulfur oxides. www.regulations.gov, and at the EPA Section 12(d) of the National Dated: January 17, 2018. Region 5 Office (please contact the Technology Transfer and Advancement Cathy Stepp, person identified in the FOR FURTHER Act of 1995 (15 U.S.C. 272 note) because Regional Administrator, Region 5. INFORMATION CONTACT section of this application of those requirements would preamble for more information). be inconsistent with the CAA; and 40 CFR part 52 is amended as follows: • Therefore, these materials have been Does not provide EPA with the PART 52—APPROVAL AND approved by EPA for inclusion in the discretionary authority to address, as PROMULGATION OF SIP, have been incorporated by appropriate, disproportionate human IMPLEMENTATION PLANS reference by EPA into that plan, are health or environmental effects, using fully federally enforceable under practicable and legally permissible ■ 1. The authority citation for part 52 sections 110 and 113 of the CAA as of methods, under Executive Order 12898 continues to read as follows: the effective date of the final rulemaking (59 FR 7629, February 16, 1994). of EPA’s approval, and will be Authority: 42 U.S.C. 7401 et seq. incorporated by reference by the 1 62 FR 27968 (May 22, 1997). ■ 2. In § 52.720:

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■ a. In the table in paragraph (c) under ■ iii. Add new entries before plans’’ under the subheading entitled ‘‘Part 214: Sulfur Limitations’’: 214.Appendix C for 214.600, 214.601, ‘‘Attainment and Maintenance Plans’’. ■ i. Revise the entries for 214.121 and 214.602, 214.603, 214.604 and 214.605 The additions and revisions read as 214.122 under the subheading entitled under a new subheading entitled follows: ‘‘Subpart B: New Fuel Combustion ‘‘Subpart AA: Requirements for Certain Emission Sources’’. SO Sources’’. § 52.720 Identification of plan. ■ ii. Revise the entry for 214.161 under 2 the subheading entitled ‘‘Subpart D: ■ b. In the table in paragraph (e) add a * * * * * Existing Liquid or Mixed Fuel new entry in alphabetical order for (c) * * * Combustion Emission Sources’’. ‘‘Sulfur dioxide (2010) nonattainment

EPA-APPROVED ILLINOIS REGULATIONS AND STATUTES

State Illinois citation Title/subject effective EPA approval date Comments date

*******

Subpart B: New Fuel Combustion Emission Sources

214.121 ...... Large Sources ...... 12/7/2015 2/1/2018, [Insert Federal Register citation]. 214.122 ...... Small Sources ...... 12/7/2015 2/1/2018, [Insert Federal Register citation].

*******

Subpart D: Existing Liquid or Mixed Fuel Combustion Emission Sources

214.161 ...... Liquid Fuel Burned Exclu- 12/7/2015 2/1/2018, [Insert Federal sively. Register citation].

*******

Subpart AA: Requirements for Certain SO2 Sources

214.600 ...... Definitions ...... 12/7/2015 2/1/2018, [Insert Federal Register citation]. 214.601 ...... Applicability ...... 12/7/2015 2/1/2018, [Insert Federal Register citation]. 214.602 ...... Compliance Deadline ...... 12/7/2015 2/1/2018, [Insert Federal Register citation]. 214.603 ...... Emission Limitations ...... 12/7/2015 2/1/2018, [Insert Federal Register citation]. 214.604 ...... Monitoring and Testing ...... 12/7/2015 2/1/2018, [Insert Federal Register citation]. 214.605 ...... Recordkeeping and Reporting 12/7/2015 2/1/2018, [Insert Federal Register citation].

*******

* * * * * (e) ** *

EPA-APPROVED ILLINOIS NONREGULATORY AND QUASI-REGULATORY PROVISIONS

State Name of SIP provision Applicable geographic or non- submittal EPA approval date Comments attainment area date

*******

Attainment and Maintenance Plans

******* Sulfur dioxide (2010) non- Lemont and Pekin ...... 3/2/2016 2/1/2018, [Insert Federal attainment plans. Register citation].

*******

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[FR Doc. 2018–01925 Filed 1–31–18; 8:45 am] Environmental Protection Agency, section 110(a)(1) and (2), and addresses BILLING CODE 6560–50–P Region 5, 77 West Jackson Boulevard, the 2012 PM2.5 NAAQS. Chicago, Illinois 60604, (312) 353–4489, C. What is the scope of this rulemaking? [email protected]. EPA is acting upon the SIP ENVIRONMENTAL PROTECTION SUPPLEMENTARY INFORMATION: submission from Indiana that addresses AGENCY Throughout this document whenever the infrastructure requirements of CAA ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean 40 CFR Part 52 section 110(a)(1) and (2) for the 2012 EPA. This supplementary information PM NAAQS. The requirement for [EPA–R05–OAR–2016–0343; FRL–9973–49– section is arranged as follows: 2.5 Region 5] states to make SIP submissions of this I. What is the background of this SIP type arises out of CAA section 110(a)(1), Air Plan Approval; Indiana; submission? which states that states must make SIP Infrastructure SIP Requirements for II. What comments were submitted on the submissions ‘‘within 3 years (or such the 2012 PM NAAQS proposed rulemaking? shorter period as the Administrator may 2.5 III. What action is EPA taking? prescribe) after the promulgation of a AGENCY: IV. Statutory and Executive Order Reviews Environmental Protection national primary ambient air quality Agency (EPA). I. What is the background of this SIP standard (or any revision thereof),’’ and ACTION: Final rule. submission? these SIP submissions are to provide for SUMMARY: The Environmental Protection A. What state submission does this the ‘‘implementation, maintenance, and Agency (EPA) is approving elements of rulemaking address? enforcement’’ of such NAAQS. The a state implementation plan (SIP) statute directly imposes on states the This rulemaking addresses a June 10, submission from Indiana regarding the duty to make these SIP submissions, 2016, submission from the Indiana infrastructure requirements of section and the requirement to make the Department of Environmental 110 of the Clean Air Act (CAA) for the submissions is not conditioned upon Management (IDEM) intended to EPA’s taking any action other than 2012 fine particulate matter (PM2.5) National Ambient Air Quality Standards address all applicable infrastructure promulgating a new or revised NAAQS.

(NAAQS). The infrastructure requirements for the 2012 PM2.5 Section 110(a)(2) includes a list of requirements are designed to ensure that NAAQS. On December 28, 2016, IDEM specific elements that ‘‘[e]ach such the structural components of each supplemented this submittal with plan’’ submission must address. state’s air quality management program additional documentation intended to EPA has historically referred to these are adequate to meet the state’s address the transport requirements of SIP submissions made for the purpose responsibilities under the CAA. EPA Section 110(a)(2)(D) for the 2012 PM2.5 of satisfying the requirements of CAA proposed this action on August 31, NAAQS; EPA will take action on this section 110(a)(1) and (2) as 2017, and received one public comment supplement in a separate rulemaking. ‘‘infrastructure SIP’’ submissions. in response. Although the term ‘‘infrastructure SIP’’ B. Why did the state make this SIP does not appear in the CAA, EPA uses DATES: This final rule is effective on submission? the term to distinguish this particular March 5, 2018. Under section 110(a)(1) and (2) of the type of SIP submission from ADDRESSES: EPA has established a CAA, states are required to submit submissions that are intended to satisfy docket for this action under Docket ID infrastructure SIPs to ensure that their other SIP requirements under the CAA, No. EPA–R05–OAR–2016–0343. All SIPs provide for implementation, such as SIP submissions that address documents in the docket are listed on maintenance, and enforcement of the the nonattainment planning the www.regulations.gov website. NAAQS, including the 2012 PM2.5 requirements of part D and the Although listed in the index, some NAAQS. These submissions must prevention of significant deterioration information is not publicly available, contain any revisions needed for (PSD) requirements of part C of title I of i.e., Confidential Business Information meeting the applicable SIP requirements the CAA, and ‘‘regional haze SIP’’ (CBI) or other information whose of section 110(a)(2), or certifications that submissions required to address the disclosure is restricted by statute. their existing SIPs for the NAAQS visibility protection requirements of Certain other material, such as already meet those requirements. CAA section 169A. copyrighted material, is not placed on EPA highlighted this statutory In this rulemaking, EPA will not take the internet and will be publicly requirement in an October 2, 2007, action on three substantive areas of available only in hard copy form. guidance document entitled ‘‘Guidance section 110(a)(2): (i) Existing provisions Publicly available docket materials are on SIP Elements Required Under related to excess emissions during available either through Sections 110(a)(1) and (2) for the 1997 periods of start-up, shutdown, or www.regulations.gov or at the 1 malfunction (‘‘SSM’’) at sources, that 8-hour Ozone and PM2.5 National Environmental Protection Agency, Ambient Air Quality Standards’’ (2007 may be contrary to the CAA and EPA’s Region 5, Air and Radiation Division, 77 Guidance) and has issued additional policies addressing such excess West Jackson Boulevard, Chicago, guidance documents, the most recent on emissions; (ii) existing provisions Illinois 60604. This facility is open from September 13, 2013, entitled ‘‘Guidance related to ‘‘director’s variance’’ or 8:30 a.m. to 4:30 p.m., Monday through on Infrastructure State Implementation ‘‘director’s discretion’’ that purport to Friday, excluding Federal holidays. We Plan (SIP) Elements under CAA permit revisions to SIP approved recommend that you telephone Eric Sections 110(a)(1) and (2)’’ (2013 emissions limits with limited public Svingen, Environmental Engineer, at Guidance). The SIP submission notice or without requiring further (312) 353–4489 before visiting the referenced in this rulemaking pertains approval by EPA, that may be contrary Region 5 office. to the applicable requirements of to the CAA; and, (iii) existing provisions FOR FURTHER INFORMATION CONTACT: Eric for PSD programs that may be

Svingen, Environmental Engineer, 1 inconsistent with current requirements PM2.5 refers to particles with an aerodynamic Attainment Planning and Maintenance diameter of less than or equal to 2.5 micrometers, of EPA’s ‘‘Final NSR Improvement Section, Air Programs Branch (AR–18J), oftentimes referred to as ‘‘fine’’ particles. Rule,’’ 67 FR 80186 (December 31,

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2002), as amended by 72 FR 32526 (June safety risks subject to Executive Order Element 2012 13, 2007) (‘‘NSR Reform’’). Instead, EPA PM2.5 13045 (62 FR 19885, April 23, 1997); has the authority to address each one of • Is not a significant regulatory action these substantive areas in separate (H)—Future SIP revisions ...... A subject to Executive Order 13211 (66 FR rulemakings. A detailed history, (I)—Nonattainment planning require- 28355, May 22, 2001); interpretation, and rationale as they ments of part D ...... (*) • Is not subject to requirements of (J)1—Consultation with government Section 12(d) of the National relate to infrastructure SIP requirements officials ...... A can be found in EPA’s May 13, 2014, (J)2—Public notification ...... A Technology Transfer and Advancement proposed rule entitled, ‘‘Infrastructure (J)3—PSD ...... A Act of 1995 (15 U.S.C. 272 note) because SIP Requirements for the 2008 Lead (J)4—Visibility protection ...... (*) application of those requirements would NAAQS’’ in the section, ‘‘What is the (K)—Air quality modeling/data ...... A be inconsistent with the CAA; and scope of this rulemaking?’’ (see 79 FR (L)—Permitting fees ...... A • Does not provide EPA with the 27241 at 27242–27245). (M)—Consultation and participation discretionary authority to address, as by affected local entities ...... A appropriate, disproportionate human II. What comments were submitted on health or environmental effects, using the proposed rulemaking? In the above table, the key is as practicable and legally permissible On August 31, 2017 (82 FR 41379), follows: methods, under Executive Order 12898 EPA proposed to approve the above- (59 FR 7629, February 16, 1994). cited elements of Indiana’s A ...... Approve. In addition, the SIP is not approved infrastructure SIP submission for the NA ...... No Action/Separate Rulemaking. to apply on any Indian reservation land * ...... Not germane to infrastructure 2012 PM2.5 NAAQS. In response to this or in any other area where EPA or an proposed action, EPA received one SIPs. Indian tribe has demonstrated that a comment from a person identifying as a tribe has jurisdiction. In those areas of ‘‘citizen of Indiana and a law student.’’ IV. Statutory and Executive Order Indian country, the rule does not have The commenter expressed support for Reviews tribal implications and will not impose EPA’s proposed approval of the Indiana Under the CAA, the Administrator is substantial direct costs on tribal infrastructure SIP for the PM2.5 NAAQS, required to approve a SIP submission governments or preempt tribal law as but ‘‘encourage[d] some sort of change that complies with the provisions of the specified by Executive Order 13175 (65 that would be stricter on states CAA and applicable Federal regulations. FR 67249, November 9, 2000). regarding localities.’’ EPA thanks the 42 U.S.C. 7410(k); 40 CFR 52.02(a). The Congressional Review Act, 5 commenter for her/his thoughts and Thus, in reviewing SIP submissions, U.S.C. 801 et seq., as added by the Small support regarding rulemakings. EPA’s role is to approve state choices, Business Regulatory Enforcement Fairness Act of 1996, generally provides III. What action is EPA taking? provided that they meet the criteria of the CAA. Accordingly, this action that before a rule may take effect, the EPA is taking final action to approve merely approves state law as meeting agency promulgating the rule must most elements of a submission from Federal requirements and does not submit a rule report, which includes a Indiana certifying that its current SIP is impose additional requirements beyond copy of the rule, to each House of the sufficient to meet the required those imposed by state law. For that Congress and to the Comptroller General infrastructure elements under section reason, this action: of the United States. EPA will submit a 110(a)(1) and (2) for the 2012 PM2.5 • Is not a significant regulatory action report containing this action and other NAAQS. EPA’s actions for the state’s subject to review by the Office of required information to the U.S. Senate, satisfaction of infrastructure SIP Management and Budget under the U.S. House of Representatives, and requirements, by element of section Executive Orders 12866 (58 FR 51735, the Comptroller General of the United 110(a)(2) and NAAQS, are contained in October 4, 1993) and 13563 (76 FR 3821, States prior to publication of the rule in the table below. January 21, 2011); the Federal Register. A major rule • Is not an Executive Order 13771 (82 cannot take effect until 60 days after it 2012 Element PM FR 9339, February 2, 2017) regulatory is published in the Federal Register. 2.5 action because SIP approvals are This action is not a ‘‘major rule’’ as (A)—Emission limits and other control exempted under Executive Order 12866; defined by 5 U.S.C. 804(2). measures ...... A • Does not impose an information Under section 307(b)(1) of the CAA, (B)—Ambient air quality monitoring/ collection burden under the provisions petitions for judicial review of this data system ...... A of the Paperwork Reduction Act (44 action must be filed in the United States (C)1—Program for enforcement of U.S.C. 3501 et seq.); Court of Appeals for the appropriate control measures ...... A • Is certified as not having a circuit by April 2, 2018. Filing a petition (C)2—PSD ...... A significant economic impact on a (D)1—I Prong 1: Interstate trans- for reconsideration by the Administrator port—significant contribution ...... NA substantial number of small entities of this final rule does not affect the (D)2—I Prong 2: Interstate trans- under the Regulatory Flexibility Act (5 finality of this action for the purposes of port—interfere with maintenance .... NA U.S.C. 601 et seq.); judicial review nor does it extend the (D)3—II Prong 3: Interstate trans- • Does not contain any unfunded time within which a petition for judicial port—prevention of significant dete- mandate or significantly or uniquely review may be filed, and shall not rioration ...... A affect small governments, as described postpone the effectiveness of such rule (D)4—II Prong 4: Interstate trans- in the Unfunded Mandates Reform Act or action. This action may not be port—protect visibility ...... NA of 1995 (Pub. L. 104–4); challenged later in proceedings to (D)5—Interstate and international pol- • Does not have Federalism lution abatement ...... A enforce its requirements. (See section (E)1—Adequate resources ...... A implications as specified in Executive 307(b)(2).) Order 13132 (64 FR 43255, August 10, (E)2—State board requirements ...... A List of Subjects in 40 CFR Part 52 (F)—Stationary source monitoring 1999); system ...... A • Is not an economically significant Environmental protection, Air (G)—Emergency power ...... A regulatory action based on health or pollution control, Incorporation by

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reference, Intergovernmental relations, PART 52—APPROVAL AND ■ 2. In § 52.770, the table in paragraph Particulate matter, Reporting and PROMULGATION OF (e) is amended by adding an entry in recordkeeping requirements. IMPLEMENTATION PLANS alphabetical order for ‘‘Section 110(a)(2) infrastructure requirements for the 2012 Dated: January 17, 2018. ■ PM2.5 NAAQS’’ to read as follows: Cathy Stepp, 1. The authority citation for part 52 continues to read as follows: Regional Administrator, Region 5. § 52.770 Identification of plan. Authority: 42 U.S.C. 7401 et seq. * * * * * 40 CFR part 52 is amended as follows: (e) * * *

EPA-APPROVED INDIANA NONREGULATORY AND QUASI-REGULATORY PROVISIONS

Title Indiana date EPA approval Explanation

******* Section 110(a)(2) infrastructure 6/10/2016 2/1/2018, [Insert Federal Reg- This action addresses the following CAA elements: requirements for the 2012 ister citation]. 110(a)(2)(A), (B), (C), (D)(i)(II) except visibility, (D)(ii), (E), PM2.5 NAAQS. (F), (G), (H), (J) except visibility, (K), (L), and (M).

*******

[FR Doc. 2018–01924 Filed 1–31–18; 8:45 am] disclosure is restricted by statute. make this action re-approving the BILLING CODE 6560–50–P Certain other material, such as revisions to the Montana SIP effective copyrighted material, is not placed on upon publication in the Federal the internet and will be publicly Register. Section 553(d)(3) of the APA ENVIRONMENTAL PROTECTION available only in hard copy form. allows an effective date less than 30 AGENCY Publicly available docket materials are days after publication ‘‘as otherwise available through http:// provided by the agency for good cause 40 CFR Part 52 www.regulations.gov, or please contact found and published with the rule.’’ 5 [EPA–R08–OAR–2017–0339; FRL–9973–17– the person identified in the FOR FURTHER U.S.C. 553(d)(3). This rule does not Region 8] INFORMATION CONTACT section for create any new regulatory requirements additional availability information. and does not change any existing Montana Second 10-Year Carbon FOR FURTHER INFORMATION CONTACT: regulatory requirements. For these Monoxide Maintenance Plan for Adam Clark, (303) 312–7104, reasons, the EPA finds good cause under Missoula [email protected]. APA section 553(d)(3) for the re- approval to become effective on the date AGENCY: Environmental Protection SUPPLEMENTARY INFORMATION: Agency (EPA). of publication of this action. I. Background ACTION: Final rule. II. Response to Comments The factual background for this action SUMMARY: The Environmental Protection The EPA received two anonymous is discussed in detail in our September public comments, one which we Agency (EPA) is taking final action to 14, 2017 direct final rule (DFR) and re-approve a State Implementation Plan considered adverse, on our action to proposal (82 FR 43180, 82 FR 43208) approve Montana’s September 19, 2016 (SIP) revision submitted by the State of approving the revised Missoula Montana. On September 19, 2016, the SIP submittal. Below is a summary of Maintenance Plan into the Montana SIP. each comment and the EPA’s response. Governor of Montana submitted to the The EPA received one adverse comment EPA a Clean Air Act (CAA) section Comment: The first commenter asked on the rulemaking and attempted to whether we were ‘‘expecting any push- 175A(b) second 10-year maintenance withdraw the DFR prior to the effective plan for the Missoula, Montana area for back’’ from businesses in extending the date of November 13, 2017. However, carbon monoxide plan for another 10 the carbon monoxide (CO) National the EPA inadvertently did not withdraw Ambient Air Quality Standard years. the DFR prior to that date and the rule Response: Under the CAA, the (NAAQS). This limited maintenance became prematurely effective on Administrator is required to approve a plan (LMP) addresses maintenance of November 13, 2017, revising the SIP submission that complies with the the CO NAAQS for a second 10-year Montana SIP to reflect the approval of provisions of the Act and applicable period beyond the original the revised Missoula Maintenance Plan. federal regulations. 42 U.S.C. 7410(k); redesignation. This action is being taken In this final rulemaking, the EPA is 40 CFR 52.02(a). Thus, in reviewing SIP under sections 110 and 175A of the responding to the comments submitted submissions, the EPA’s role is to CAA. on the proposed revision to the Montana approve state actions, provided that DATES: Effective February 1, 2018. SIP, and is re-approving the revised they meet the criteria of the CAA. With ADDRESSES: The EPA has established a Missoula Maintenance Plan into the that, the EPA notes that we did not docket for this action under Docket ID Montana SIP. The background receive any comments from any Number EPA–R08–OAR–2017–0339. All information found in the DFR is still individual businesses or business documents in the docket are listed on relevant and our September 14, 2017 groups. the http://www.regulations.gov website. proposal provides the basis for this final Comment: The second commenter Although listed in the index, some action. asserted that the EPA had failed to information is not publicly available, The EPA finds that there is good consider the effects of approving the SIP e.g., confidential business information cause under section 553(d)(3) of the submission on the economy or energy (CBI) or other information whose Administrative Procedure Act (APA) to independence as required by a March

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28, 2017 Executive Order entitled • Does not have federalism or action. This action may not be ‘‘Promoting Energy Independence and implications as specified in Executive challenged later in proceedings to Economic Growth.’’ (E. O. 13783). Order 13132 (64 FR 43255, August 10, enforce its requirements. (See CAA Response: Under the CAA, the 1999); section 307(b)(2).) • Is not an economically significant Administrator is required to approve a List of Subjects in 40 CFR Part 52 SIP submission that complies with the regulatory action based on health or provisions of the Act and applicable safety risks subject to Executive Order Environmental protection, Air federal regulations. 42 U.S.C. 7410(k); 13045 (62 FR 19885, April 23, 1997); pollution control, Carbon monoxide, • 40 CFR 52.02(a). Thus, in reviewing SIP Is not a significant regulatory action Incorporation by reference, Reporting submissions, the EPA’s role is to subject to Executive Order 13211 (66 FR and recordkeeping requirements. approve state actions, provided that 28355, May 22, 2001); • Is not subject to requirements of Dated: January 24, 2018. they meet the criteria of the CAA. The Debra H. Thomas, EPA cannot consider disapproving a SIP section 12(d) of the National Acting Regional Administrator, Region 8. submission or require any changes Technology Transfer and Advancement based on E. O. 13783. Act of 1995 (15 U.S.C. 272 note) because 40 CFR part 52 is amended as follows: application of those requirements would III. Final Action be inconsistent with the Clean Air Act; PART 52—APPROVAL AND The EPA is re-approving the revised and PROMULGATION OF • Does not provide the EPA with the Missoula Maintenance Plan submitted IMPLEMENTATION PLANS discretionary authority to address, as on September 19, 2016. This appropriate, disproportionate human ■ 1. The authority citation for part 52 maintenance plan meets the applicable health or environmental effects, using continues to read as follows: CAA requirements, and we have practicable and legally permissible determined it is sufficient to provide for Authority: 42 U.S.C. 7401 et seq. methods, under Executive Order 12898 maintenance of the 8-hour CO NAAQS (59 FR 7629, February 16, 1994). Subpart BB—Montana over the course of the second 10-year In addition, the SIP does not apply on maintenance period out to 2027. This any Indian reservation land or in any ■ 2. Section 52.1373 is amended by rule, which responds to the adverse other area where the EPA or an Indian revising paragraph (d) to read as comment received, finalizes our tribe has demonstrated that a tribe has follows: proposed approval of the revised section jurisdiction. In those areas of Indian of Montana’s SIP. § 52.1373 Control strategy: Carbon country, the rule does not have tribal monoxide. implications and will not impose IV. Statutory and Executive Order * * * * * Reviews substantial direct costs on tribal (d) Revisions to the Montana State governments or preempt tribal law as Implementation Plan, revised Carbon Under the CAA, the Administrator is specified by Executive Order 13175 (65 required to approve a SIP submission Monoxide Maintenance Plan for FR 67249, November 9, 2000). Missoula, as submitted by the Governor that complies with the provisions of the The Congressional Review Act, 5 on September 19, 2016 (as approved by Act and applicable federal regulations. U.S.C. 801 et seq., as added by the Small the EPA on February 1, 2018). 42 U.S.C. 7410(k); 40 CFR 52.02(a). Business Regulatory Enforcement Thus, in reviewing SIP submissions, the Fairness Act of 1996, generally provides [FR Doc. 2018–01854 Filed 1–31–18; 8:45 am] EPA’s role is to approve state actions, that before a rule may take effect, the BILLING CODE 6560–50–P provided that they meet the criteria of agency promulgating the rule must the CAA. Accordingly, this action submit a rule report, which includes a merely approves some state law copy of the rule, to each House of the ENVIRONMENTAL PROTECTION provisions as meeting federal Congress and to the Comptroller General AGENCY requirements; this action does not of the United States. The EPA will 40 CFR Part 124 impose additional requirements beyond submit a report containing this action those imposed by state law. For that and other required information to the [FRL–9971–52–OARM] reason, this action: U.S. Senate, the U.S. House of • Is not a significant regulatory action Representatives, and the Comptroller Consolidated Rules of Practice subject to review by the Office of General of the United States prior to Governing the Administrative Management and Budget under publication of the rule in the Federal Assessment of Civil Penalties, Executive Orders 12866 (58 FR 51735, Register. A major rule cannot take effect Issuance of Compliance or Corrective October 4, 1993) and 13563 (76 FR 3821, until 60 days after it is published in the Action Orders, and the Revocation/ January 21, 2011); Federal Register. This action is not a Termination or Suspension of Permits; • Does not impose an information ‘‘major rule’’ as defined by 5 U.S.C. Procedures for Decisionmaking; collection burden under the provisions 804(2). Correction of the Paperwork Reduction Act (44 Under section 307(b)(1) of the CAA, AGENCY: Environmental Protection U.S.C. 3501 et seq.); petitions for judicial review of this Agency. • Is certified as not having a action must be filed in the United States ACTION: Correcting amendments. significant economic impact on a Court of Appeals for the appropriate substantial number of small entities circuit by April 2, 2018. Filing a petition SUMMARY: The Environmental Protection under the Regulatory Flexibility Act (5 for reconsideration by the Administrator Agency (EPA) published a document in U.S.C. 601 et seq.); of this final rule does not affect the the Federal Register on January 9, 2017. • Does not contain any unfunded finality of this action for the purposes of That document revised filing and mandate or significantly or uniquely judicial review nor does it extend the service requirements in permit appeal affect small governments, as described time within which a petition for judicial proceedings before the Environmental in the Unfunded Mandates Reform Act review may be filed, and shall not Appeals Board, but in doing so two of 1995 (Pub. L. 104–4); postpone the effectiveness of such rule subsections of the procedural rule were

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inadvertently and unintentionally proceedings for the assessment of civil the meaning of the sentence and will removed. This rule corrects that penalties, issuance of various make the provision clearer. inadvertent removal as well as two other compliance orders, and termination or List of Subjects in 40 CFR Part 124 non-substantive typographical errors in suspension of certain permits, under the rule. part 22 of title 40 of the CFR. See 40 Environmental protection, DATES: This final rule correction is CFR 22.1. This action also affects parties Administrative practice and procedures. effective on February 1, 2018. involved in appeal of EPA permits Dated: January 22, 2018. FOR FURTHER INFORMATION CONTACT: under part 124 of title 40 of the CFR. Donna J. Vizian, Ammie Roseman-Orr, Environmental III. Background Principal Deputy Assistant Administrator, Appeals Board, U.S. Environmental Office of Administration and Resources Protection Agency, William Jefferson The rule document published on Management. January 9, 2017 (82 FR 2230), revised Clinton Building East, 1200 Accordingly, 40 CFR part 124 is the filing and service procedures used Pennsylvania Ave NW, Mail Code corrected as follows: 1103M, Washington DC 20460–0001, in permit appeals to the Environmental phone number (202) 233–0122 or by Appeals Board. The EPA also revised 40 PART 124—PROCEDURES FOR email at [email protected]. CFR 124.19(b)(1) and (2) so that the DECISIONMAKING deadlines for filing a response to a SUPPLEMENTARY INFORMATION: petition for review are based on the date ■ 1. The authority citation for part 124 I. Why is the EPA issuing this rule in the petition for review is served, rather continues to read as follows: final form without first issuing a than the date it is filed. Subsections (3) Authority: Resource Conservation and proposal? and (4) were intended to remain Recovery Act, 42 U.S.C. 6901 et. seq.; Safe Today’s final rule is limited to unchanged but were inadvertently Drinking Water Act, 42 U.S.C. 300f et. seq.; correcting a mistake to procedural removed from the rule. Clean Water Act, 33 U.S.C. 1251 et. seq.; requirements for administrative Additionally, in § 124.19(i)(2)(iii), the Clean Air Act, 42 U.S.C. 7401 et. seq. adjudicatory hearings and appeals from address for delivery by hand or courier ■ 2. In § 124.19: such hearings and from permit to the Environmental Appeals Board ■ a. Add paragraphs (b)(3) and (4). decisions. As an amendment to a incorrectly identifies the room number ■ b. Revise paragraph (i)(2) introductory procedural rule, this final rule itself is as 3334 when the actual room number text and paragraph (i)(2)(iii). a procedural rule. Under the is 3332 and language regarding methods ■ c. Revise the third sentence of Administrative Procedure Act, an of delivery by hand or courier was paragraph (i)(3)(ii). agency may issue ‘‘rules of agency inadvertently omitted. The addition and revisions read as organization, procedure, or practice’’ Finally, the language in follows: without first proposing such rules for § 124.19(i)(3)(ii) revising the service public comment. 5 U.S.C. 553(b). requirements to allow for service by § 124.19 Appeal of RCRA, UIC, NPDES and PSD Permits. Accordingly, public comment is not email inadvertently contains an extra required. ‘‘or’’ that does not belong so that this * * * * * In addition, EPA has determined that provision of the rule now reads: (b) * * * this rule is effective immediately upon ‘‘Service must be by first class U.S. mail, (3) A permit applicant who did not publication in the Federal Register. In by any reliable commercial delivery file a petition but who wishes to general, Section 5 U.S.C. 553(d) requires service, or, if agreed to by the parties, participate in the appeal process must that substantive rules not become by facsimile or other electronic means, file a notice of appearance and a effective less than 30 days after including but not necessarily limited to response to the petition. Such publication. However, this action or email.’’ Removal of the last ‘‘or’’ will documents must be filed by the involves not a substantive rule but a make the sentence clearer. deadlines provided in paragraph (b)(1) or (2) of this section, as appropriate. procedural rule. Moreover, the purpose IV. Need for Correction of the 30-day waiting period prescribed (4) The State or Tribal authority in section 553(d) is to give affected As published on January 9, 2017 (82 where the permitted facility or site is or parties a reasonable time to adjust their FR 2230), the final regulation contains is proposed to be located (if that behavior and prepare before the final an error that resulted in the inadvertent authority is not the permit issuer) must rule takes effect. This action does not removal of two procedural provisions also file a notice of appearance and a create any new regulatory requirements that govern the participation of permit response if it wishes to participate in such that affected parties would need applicants, State, and Tribal Authorities the appeal. Such response must be filed time to prepare before the actions take in permit proceedings before the by the deadlines provided in paragraph effect. To the contrary, this action Environmental Appeals Board. The (b)(1) or (2) of this section, as merely corrects typographical errors and absence of these provisions may result appropriate. restores regulatory text that was in confusion to parties and * * * * * inadvertently deleted thereby restoring inefficiencies in the appeals process and (i) * * * the prior status quo. Furthermore, the thus these provisions need to be (2) Method of filing. Unless otherwise absence of these provisions may result reinstated. Additionally, revising the permitted under these rules, documents in confusion to parties as well as Environmental Appeals Board’s address must be filed either by using the inefficiencies in the appeals process and for delivery by hand or courier in Environmental Appeals Board’s thus it is in the public interest have the § 124.19(i)(2)(iii) to reflect the correct electronic filing system, by U.S. mail, or restoration of those provisions effective room number and to include methods of by hand delivery or courier (including immediately. See 5 U.S.C. 553(d)(3). delivery by hand or courier will avoid delivery by U.S. Express Mail or by a potential confusion. Finally, the commercial delivery service). In II. Does this action apply to me? superfluous ‘‘or’’ in the third sentence addition, a motion or a response to a This action affects parties involved in of § 124.19(i)(3)(ii) is confusing. motion may be submitted by facsimile if EPA administrative adjudicatory Removal of that word will not change the submission contains no attachments.

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Upon filing a motion or response to a annual adjustments for inflation in does not contain any new or modified motion by facsimile, the sender must, order to improve their effectiveness and information collection burden for small within one business day, submit the maintain their deterrent effect. The 2015 business concerns with fewer than 25 original copy to the Clerk of the Inflation Adjustment Act provides that employees, pursuant to the Small Environmental Appeals Board either the new penalty levels shall apply to Business Paperwork Relief Act of 2002, electronically, by mail, or by hand penalties assessed after the effective Public Law 107–198, see 44 U.S.C. delivery or courier. The Environmental date of the increase, including when the 3506(c)(4). Appeals Board may by order require penalties whose associated violation Congressional Review Act filing by facsimile or the Board’s predate the increase. electronic filing system, subject to any DATES: Effective February 1, 2018. The Commission will send a copy of appropriate conditions and limitations. FOR FURTHER INFORMATION CONTACT: Lisa this Order to Congress and the * * * * * Gelb, Enforcement Bureau, 202–418– Government Accountability Office (iii) Filing by hand delivery or courier. 1479. pursuant to the Congressional Review Documents delivered by hand or courier Act, see 5 U.S.C. 801(a)(1)(A). SUPPLEMENTARY INFORMATION: This is a (including deliveries by U.S. Express List of Subjects in 47 CFR Part 1 Mail or by a commercial delivery summary of the Commission’s Order, service) must be delivered to the Clerk DA 18–12, adopted and released on Administrative practice and of the Environmental Appeals Board at: January 5, 2018. The document is procedure, Penalties. available for download at http:// U.S. Environmental Protection Agency, _ _ Federal Communications Commission. Environmental Appeals Board, WJC East transition.fcc.gov/Daily Releases/Daily Business/2018/db0105/DA-18-12A1.pdf. Lisa S. Gelb, Building, 1201 Constitution Avenue Deputy Chief, Enforcement Bureau. NW, Room 3332, Washington, DC The complete text of this document is 20004. also available for inspection and Final Rules (3) * * * copying during normal business hours in the FCC Reference Information For the reasons discussed in the (ii) Service requirements for parties. preamble, the Federal Communications * * * Service must be by first class U.S. Center, Portals II, 445 12th Street SW, Room CY–A257, Washington, DC 20554. Commission amends 47 CFR part 1 as mail, by any reliable commercial follows: delivery service, or, if agreed to by the The Bipartisan Budget Act of 2015 parties, by facsimile or other electronic included, as Section 701 thereto, the PART 1—PRACTICE AND means, including but not necessarily 2015 Inflation Adjustment Act, which PROCEDURE limited to email. * * * amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. * * * * * ■ 1. The authority citation for part 1 is L. 101–410), to improve the [FR Doc. 2018–02055 Filed 1–31–18; 8:45 am] revised to read as follows: effectiveness of civil monetary penalties BILLING CODE 6560–50–P and maintain their deterrent effect. Authority: 47 U.S.C. 34–39, 151, 154(i), 154(j), 155, 157, 160, 201, 225, 227, 303, 309, Under the act, agencies are required to 310, 332, 1403, 1404, 1451, 1452, 1455; 28 make annual inflationary adjustments FEDERAL COMMUNICATIONS U.S.C. 2461 note. by January 15 each year. The COMMISSION adjustments are calculated pursuant to Subpart A—General Rules of Practice 47 CFR Part 1 Office of Management and Budget and Procedure (OMB) guidance. OMB issued guidance [DA 18–12] on December 15, 2017, and this Order ■ 2. Section 1.80 is amended by revising follows that guidance. We therefore the table in Section III of the note to Annual Adjustment of Civil Monetary update the civil monetary penalties set paragraph (b)(8) and revising paragraph Penalties To Reflect Inflation forth in the Commission’s rules, to (b)(9) to read as follows: AGENCY: Federal Communications reflect an annual inflation adjustment § 1.80 Forfeiture proceedings. Commission. that derives from OMB’s cost-of-living * * * * * ACTION: multiplier of 1.02041. Final rule. (b) * * * SUMMARY: The Federal Civil Penalties Paperwork Reduction Act (8) * * * Inflation Adjustment Act Improvements This document does not contain new Note to paragraph (b)(8) * * * Act of 2015 (the 2015 Inflation or modified information collection Section III. Non-Section 503 Adjustment Act) requires the Federal requirements subject to the Paperwork Forfeitures That Are Affected by the Communications Commission to amend Reduction Act of 1995 (PRA), Public Downward Adjustment Factors its forfeiture penalty rules to reflect Law 104–13. In addition, therefore, it * * * * *

Statutory amount Violation ($)

Sec. 202(c) Common Carrier Discrimination ...... $11,784, $589/day. Sec. 203(e) Common Carrier Tariffs ...... $11,784, $589/day. Sec. 205(b) Common Carrier Prescriptions ...... $23,566. Sec. 214(d) Common Carrier Line Extensions ...... $2,356/day. Sec. 219(b) Common Carrier Reports ...... $2,356/day. Sec. 220(d) Common Carrier Records & Accounts ...... $11,784/day. Sec. 223(b) Dial-a-Porn ...... $122,110/day. Sec. 227(e) Caller Identification ...... $11,278/violation. $33,833/day for each day of continuing violation, up to $1,127,799 for any single act or failure to act. Sec. 364(a) Forfeitures (Ships) ...... $9,819/day (owner).

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Statutory amount Violation ($)

Sec. 364(b) Forfeitures (Ships) ...... $1,964 (vessel master). Sec. 386(a) Forfeitures (Ships) ...... $9,819/day (owner). Sec. 386(b) Forfeitures (Ships) ...... $1,964 (vessel master). Sec. 634 Cable EEO ...... $870/day.

(9) Inflation adjustments to the Maximum SUPPLEMENTARY INFORMATION: maximum forfeiture amount. (i) penalty after 2018 U.S. Code citation General Background Pursuant to the Federal Civil Penalties inflation Inflation Adjustment Act Improvements adjustment Black sea bass are jointly managed by the Mid-Atlantic Fishery Management Act of 2015, Public Law 114–74 (129 47 U.S.C. 507(a) ...... 1,945 Stat. 599–600), which amends the 47 U.S.C. 507(b) ...... 285 Council (Council) and the Atlantic Federal Civil Monetary Penalty Inflation 47 U.S.C. 554 ...... 870 States Marine Fisheries Commission Adjustment Act of 1990, Public Law (Commission) as part of the joint 101–410 (104 Stat. 890; 28 U.S.C. 2461 * * * * * Summer Flounder, Scup, and Black Sea note), the statutory maximum amount of [FR Doc. 2018–01990 Filed 1–31–18; 8:45 am] Bass Fishery Management Plan (FMP). a forfeiture penalty assessed under this BILLING CODE 6712–01–P States manage black sea bass within 3 section shall be adjusted annually for nautical miles (4.83 km) of their coasts inflation by order published no later under the Commission’s plan. The than January 15 each year. Annual DEPARTMENT OF COMMERCE applicable Federal regulations govern inflation adjustments will be based on vessels and individual anglers fishing in the percentage (if any) by which the National Oceanic and Atmospheric Federal waters of the exclusive CPI–U for October preceding the date of Administration economic zone (EEZ), as well as vessels the adjustment exceeds the prior year’s possessing a Federal black sea bass CPI–U for October. The Office of 50 CFR Part 648 charter/party vessel permit, regardless of where they fish. This rule applies to Management and Budget (OMB) will [Docket No. 171023999–8070–02] issue adjustment rate guidance no later black sea bass (Centropristis striata) in than December 15 each year to adjust for RIN 0648–BH35 U.S. waters of the Atlantic Ocean from inflation in the CPI–U as of the most 35 E 13.3′ N lat. (the latitude of Cape recent October. Fisheries of the Northeastern United Hatteras Lighthouse, Buxton, North (ii) The application of the annual States; Black Sea Bass Fishery; 2018 Carolina) northward to the U.S./Canada inflation adjustment required by the February Recreational Season border. foregoing Federal Civil Penalties Modification This action implements the addition of a Federal recreational black sea bass Inflation Adjustment Act Improvements AGENCY: National Marine Fisheries fishing season during February of 2018. Act of 2015 results in the following Service (NMFS), National Oceanic and Additional background information adjusted statutory maximum forfeitures Atmospheric Administration (NOAA), regarding the development of this action authorized by the Communications Act: Commerce. was provided in the proposed rule (83 ACTION: Final rule. Maximum FR 780; January 8, 2018) and is not penalty after 2018 U.S. Code citation SUMMARY: NMFS is implementing repeated here. The Federal recreational inflation measures for the remainder of 2018 are adjustment regulations to open a 2018 February recreational season in the Federal black still in development and will be 47 U.S.C. 202(c) ...... $11,784 sea bass fishery. This action provides implemented through a separate 589 additional recreational fishing rulemaking later this spring. 47 U.S.C. 203(e) ...... 11,784 opportunities in winter, while Final Action 589 maintaining management measures to 47 U.S.C. 205(b) ...... 23,566 This action implements a 28-day 47 U.S.C. 214(d) ...... 2,356 prevent overfishing consistent with the Summer Flounder, Scup, and Black Sea winter season for the 2018 recreational 47 U.S.C. 219(b) ...... 2,356 black sea bass fishery during the month 47 U.S.C. 220(d) ...... 11,784 Bass Fishery Management Plan. This rule is intended to inform the public of of February. The current black sea bass 47 U.S.C. 223(b) ...... 122,110 recreational management measures of a 47 U.S.C. 227(e) ...... 11,278 this new 2018 recreational season. 12.5-inch (31.75-cm) minimum size and 33,833 DATES: Effective February 1 through 15-fish possession limit still apply 1,127,799 February 28, 2018. 47 U.S.C. 362(a) ...... 9,819 during this February season. As 47 U.S.C. 362(b) ...... 1,964 ADDRESSES: Copies of the explained in the proposed rule, this 47 U.S.C. 386(a) ...... 9,819 Environmental Assessment (EA), action responds to the favorable 2016 47 U.S.C. 386(b) ...... 1,964 Regulatory Flexibility Act Analyses, and benchmark stock assessment for black 47 U.S.C. 503(b)(2)(A) ... 49,096 other supporting documents for the sea bass, and is intended to increase 490,967 action are available upon request from recreational fishing access to a stable 47 U.S.C. 503(b)(2)(B) ... 196,387 Dr. Christopher M. Moore, Executive stock at a time of year when few other 1,963,870 Director, Mid-Atlantic Fishery recreational species are available. 47 U.S.C. 503(b)(2)(C) ... 397,251 Management Council, Suite 201, 800 N. 3,666,930 Two states, North Carolina and 47 U.S.C. 503(b)(2)(D) ... 19,639 State Street, Dover, DE 19901. Virginia, have formally declared their 147,290 FOR FURTHER INFORMATION CONTACT: intent to participate in the February 47 U.S.C. 503(b)(2)(F) ... 112,780 Cynthia Hanson, Fishery Management 2018 recreational season. To confirm 1,127,799 Specialist, (978) 281–9180. their participation, both states

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submitted a plan to offset their expected Response 2: NMFS agrees and notes development. Furthermore, NMFS harvest during this winter season that increased opportunity is a key agrees, which is why the 2018 fishing through their recreational management purpose of this action. opportunity is restricted to February measures for remainder of the 2018 Comment 3: Several commenters and is, by design, a small scale endeavor fishing year. opposed implementation of the to increase access with minimum risk. Commission-based measures proposed season, stating concerns over The Council is considering options to implemented by states may vary by the reduction in the recreational harvest address the noted reporting and state, and differ from the Federal water limit for the rest of the 2018 fishing accountability issues in its development measures. Because only Virginia and year, the inability of northern states to of the Wave 1 recreational Letter of North Carolina have committed to adequately participate due to weather Authorization program for 2019 and participate in this winter season, the conditions, the unfavorable coastal future years. NMFS encourages MA fishery will only be open for these distribution of black sea bass in DMF to continue raising these concerns states. Federal permit holders are February, and the feasibility of the with the Council and Commission required to adhere to the more season overall. Many of these during continued development of a restrictive set of measures irrespective commenters noted that better Wave 1 recreational black sea bass of whether the vessel is fishing in state opportunities would be created by fishery. or Federal waters. Similarly, private lengthening the existing seasons into Comment 6: One commenter asked anglers must adhere to the recreational April or October or changing the bag that we protect the livelihoods of measures implemented by the state in limits. commercial fishermen. which the fish will be landed as all the Response 3: The purpose of this Response 6: NMFS agrees and state-implemented measures place action is to create more recreational considers this a critical component of its restrictions on season, minimum fish fishing access and opportunity at a time overall mandate. However, this size, and per-angler possession limit. when other options are limited or comment does not pertain to the subject For additional information on state- restricted in the winter. There are more action, which involves the recreational implemented management measures, varied recreational opportunities in the fishery. later months of the year. Only Virginia please contact the marine fisheries Comment 7: One commenter claimed and North Carolina have committed to management agency for the state in that black sea bass are intelligent and participate in this February season, so question or the Commission should not be farmed to extinction. only those states will need to account (www.asmfc.org; 703–842–0740). Response 7: The recent 2016 for any catch during the rest of the 2018 benchmark stock assessment showed Comments and Responses fishing year. The expected harvest from that wild black sea bass populations are these two states is expected to be The public comment period for the thriving at nearly three times the minimal and will not appreciably proposed rule ended on January 23, biomass target, and not at risk of reduce the quota available for the 2018. Thirteen comments were received extinction. Also, this action pertains to summer and fall fishery. from the public on this rule. Many of recreational fishing activities, not Comment 4: One commenter was aquaculture or marine farming practices. the comments expressed similar upset about Federal agencies’ varied concerns. interpretations and implementations of Changes From the Proposed Rule Comment 1: One commenter was the National Environmental Policy Act There are no changes from the dissatisfied with the regulatory (NEPA), arguing that state and local proposed rule. flexibility analysis (RFA) process and governments should play a larger role in believed that more input from small cooperative actions to better represent Classification businesses should have been taken into the ‘‘human environment.’’ Pursuant to section 304(b)(1)(A) of the account during the development stage of Response 4: A full environmental Magnuson-Stevens Act, the NMFS this rule. assessment (EA) was prepared Assistant Administrator has determined Response 1: Thorough RFA analyses consistent with applicable NEPA that this final rule is consistent with the were prepared for this action consistent guidance and Council for Summer Flounder, Scup, and Black Sea with Small Business Administration Environmental Quality (CEQ) Bass FMP, other provisions of the guidance. The action was also discussed requirements. This action was also Magnuson-Stevens Act, and other at several public Council and developed with full collaboration from applicable law. Commission meetings where the state agencies through the Commission. This final rule has been determined to concerns of small businesses were No comments were received that raised be not significant for purposes of considered. This comment did not raise specific concerns or that noted Executive Order 12866. specific issues regarding the proposed deficiencies with the prepared NEPA This final rule does not duplicate, rule or the economic impact analyses analyses in support of this action. conflict, or overlap with any existing summarized in the initial RFA for this Comment 5: The Massachusetts Federal rules. action. Rather, the commenter stated Division of Marine Fisheries (MA DMF) This action does not contain a frustrations with the RFA process in submitted a comment raising concerns collection of information requirement general, stating that RFA regulations about the lack of data, reporting, and for purposes of the Paperwork need to be updated and the small accountability during Wave 1 in the Reduction Act. business community needs to be better recreational fishery. They also The Assistant Administrator for included in policy discussions during expressed concern about the potential Fisheries, NOAA, finds good cause their development. These are larger implications of this season on future under 5 U.S.C. 553(d)(3) to waive the changes that are outside the purview of recreational rulemaking for states at the 30-day delay of effectiveness period for this action. Commission level, and Council this rule, to ensure that the action is in Comment 2: One commenter was in decisions at the Federal level. place on or about February 1, 2018. This favor of this action and is looking Response 5: The Council and action implements an additional Federal forward to increased fishing Commission openly acknowledged black sea bass recreational season opportunity. these concerns during this action’s during February 2018. A delay in its

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effectiveness would reduce the length of Final Regulatory Flexibility Analysis in excess of $7.5 million. The current the open winter season; unnecessarily The final regulatory flexibility ownership data set used for this analysis disadvantaging recreational anglers that analysis (FRFA) included in this final is based on calendar year 2016 (the most wish to participate, and limiting the rule was prepared pursuant to 5 U.S.C. recent complete year available) and fishing opportunity that this action was 604(a), and incorporates the initial contains average gross sales associated meant to create. regulatory flexibility analysis (IRFA) with those permits for calendar years 2014 through 2016. According to the Furthermore, regulated parties do not and a summary of analyses completed to ownership database, there were 406 for- require any additional time to come into support the action. A public copy of the hire permits that generated revenues compliance with this rule. Unlike environmental assessment/IRFA is from recreational fishing for various actions that require an adjustment available from the Council (see species during the 2014–2016 period. Of period, charter/party operators will not ADDRESSES). The preamble to the these permits, there were 328 that were have to purchase new equipment or proposed rule included a detailed not affiliated with any other ownership otherwise expend time or money to summary of the analyses contained in group. The remaining 78 for-hire vessels comply with these management the IRFA, and that discussion is not were comprised of affiliated ownership measures. Rather, complying with this repeated here. final rule simply means adhering to the groups with between two and six for- existing management measures for black A Summary of the Significant Issues hire vessels for a total of 359 for-hire sea bass while the charter/party Raised by the Public in Response to the affiliate firms; all of which are operators are engaged in fishing IRFA, a Summary of the Agency’s categorized as small businesses. activities during the new open season. Assessment of Such Issues, and a Although it is not possible to derive This action has been discussed at Statement of Any Changes Made in the what proportion of the overall revenues multiple Council and Commission Final Rule as a Result of Such came from specific fishing activities, public meetings throughout its Comments further analysis conducted by the Council and NMFS during the development and is expected by the NMFS received one comment on the recreational fishing sector. development of this action identified RFA process in general, stating that RFA that in 2016 there were 291 for-hire This rule is being issued at the earliest regulations need to be updated and the entities that recreationally caught black possible date. Preparation of the small business community needs to be sea bass. In 2013, the last year that a proposed rule was dependent on afforded more inclusion in policy recreational black sea bass fishery was completion of the EA in support of the discussions during their development. open in January and February, 331 for- recommendations developed by the However, this comment did not raise hire firms caught black sea bass Council and Commission. specific issues regarding the proposed recreationally; however, only 39 of Documentation in support of the rule or the economic analyses those were active during the Wave 1 Council’s recommended specifications summarized in the IRFA. Refer to the (January and February) period. While is required for us to provide the public ‘‘Comments and Responses’’ section of these are the best available estimates of with information from the this preamble for more detail. No potential participation in the February environmental and economic analyses, changes to the proposed rule are season implemented by this action, as required in rulemaking, and to necessary as a result of the public these numbers are not necessarily evaluate the consistency of the comments. indicative of the number of entities that Council’s recommendation with the Description and Estimate of Number of will actually participate. Overall, Magnuson-Stevens Act and other participation is expected to be low as applicable law. The Council’s decision Small Entities to Which the Rule Would Apply only Virginia and North Carolina to recommend a February season was declared into the fishery, and general not final until December 13, 2017, and This final rule affects small entities comments on the proposed rule suggest a complete document was finalized in engaged in recreational fish harvesting that businesses are primarily promoting late December 2017. Due to this tight operations within the black sea bass and planning for the busier summer and timeline, we were unable to prepare this fishery. For the purposes of the RFA fall seasons. action early enough to allow for both an analysis, the ownership entities (or appropriate public comment period and firms), not the individual vessels, are Description of Projected Reporting, a 30-day delay in effectiveness. The considered to be the regulated entities. Recordkeeping, and Other Compliance proposed rule published on January 8, Individually permitted vessels may hold Requirements 2018, with a 15-day comment period permits for several fisheries, harvesting No additional reporting, ending January 23, 2018. This action species of fish that are regulated by recordkeeping, or other compliance creates an additional Federal several different FMPs, even beyond requirements are included in this final recreational season for black sea bass those affected by this action. rule. and increases fishing opportunity and Furthermore, multiple-permitted vessels access in the winter that would and/or permits may be owned by Description of the Steps the Agency Has otherwise be constrained under the entities affiliated by stock ownership, Taken To Minimize the Significant current seasons. If this final rule were common management, identity of Economic Impact on Small Entities delayed for 30 days, the proposed 28- interest, contractual relationships, or Consistent With the Stated Objectives of day recreational season would be economic dependency. Because of this, Applicable Statutes severely shortened or may not become some individually permitted vessels NMFS is implementing the Council- effective at all. This would diminish any may be part of the same firm because recommended final rule to open a opportunity created by opening a winter they have the same owner for the February recreational season in the 2018 season, and would be contrary to the purpose of this analysis. black sea bass fishery to satisfy the purpose of the action. For these reasons, In terms of the RFA, a business Magnuson-Stevens Act requirements to a 30-day delay in effectiveness would be primarily engaged in for-hire fishing ensure that fish stocks are not subject to contrary to the public interest and is activity is classified as a small business overfishing, while allowing the greatest therefore waived. if it has combined annual receipts not access to the fishery, and opportunity to

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achieve optimum yield. The objective of of related rules for which an agency is PART 648—FISHERIES OF THE this action is to increase fishing required to prepare a FRFA, the agency NORTHEASTERN UNITED STATES opportunity while maintaining catch shall publish one or more guides to within the recreational harvest limit and assist small entities in complying with ■ 1. The authority citation for part 648 annual catch limit. the rule, and shall designate such continues to read as follows: As described in the proposed rule for publications as ‘‘small entity this action, two other alternatives to the compliance guides.’’ The agency shall Authority: 16 U.S.C. 1801 et seq. approved action were considered. explain the actions a small entity is § 648.146 [Suspended] Maintaining the status quo with no required to take to comply with a rule winter fishing did not take advantage of or group of rules. As part of this ■ 2. Section 648.146 is suspended. the favorable stock status or provide any rulemaking process, a letter to permit ■ additional access or opportunity in the holders that also serves as small entity 3. Section 648.150 is added to subpart recreational black sea bass fishery. compliance guide was prepared and I to read as follows: Opening the fishery for both January will be sent to all holders of Federal § 648.150 Black sea bass recreational and February could have created more charter/party permits issued for the fishing season. recreational fishing opportunity in 2018; black sea bass fishery. In addition, however, given the lack of recreational copies of this final rule and guide (i.e., Vessels that are not eligible for a data available, the time constraints permit holder letter) are available from moratorium permit under § 648.4(a)(7), involved, and the potential NMFS (see ADDRESSES) and at the and fishermen subject to the possession disproportionate impacts to state following website: limit specified in § 648.145(a), may only recreational fisheries later in the year, www.greateratlantic.fisheries.noaa.gov. possess black sea bass from February 1 this alternative was not selected. The through February 28, May 15 through List of Subjects in 50 CFR Part 648 action described in this final rule was September 21, and October 22 through chosen as the best feasible way to Fisheries, Fishing, Reporting and December 31, unless this time period is increase recreational fishing recordkeeping requirements. adjusted pursuant to the procedures in opportunity in the black sea bass fishery § 648.142. in 2018 with the lowest potential Dated: January 29, 2018. negative impact. Chris Oliver, [FR Doc. 2018–02025 Filed 1–31–18; 8:45 am] Assistant Administrator for Fisheries, BILLING CODE 3510–22–P Small Entity Compliance Guide National Marine Fisheries Service. Section 212 of the Small Business For the reasons set out in the Regulatory Enforcement Fairness Act of preamble, 50 CFR part 648 is amended 1996 states that, for each rule or group as follows:

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Proposed Rules Federal Register Vol. 83, No. 22

Thursday, February 1, 2018

This section of the FEDERAL REGISTER • Hand Delivery: Deliver to Mail will also post a report summarizing each contains notices to the public of the proposed address above between 9 a.m. and 5 substantive verbal contact we receive issuance of rules and regulations. The p.m., Monday through Friday, except about this NPRM. purpose of these notices is to give interested Federal holidays. Discussion persons an opportunity to participate in the For service information identified in rule making prior to the adoption of the final rules. this NPRM, contact Textron Aviation We received a report from an operator Inc., Textron Aviation Customer of one of the affected Textron Aviation Service, One Cessna Blvd., Wichita, Inc. model airplanes that cracks were DEPARTMENT OF TRANSPORTATION Kansas 67215; telephone: (316) 517– found in the lower area of the forward 5800; email: [email protected]; cabin doorpost bulkhead. Further Federal Aviation Administration internet: www.txtav.com. You may investigation revealed more than four review this referenced service dozen similar cracks on Textron 14 CFR Part 39 information at the FAA, Policy and Aviation Inc. 100 and 200 airplanes. It Innovation Division, 901 Locust, Kansas has been determined that the cracks [Docket No. FAA–2017–0049; Product City, Missouri 64106. For information result from metal fatigue. Identifier 2017–CE–031–AD] on the availability of this material at the This condition, if not detected and RIN 2120–AA64 FAA, call (816) 329–4148. addressed, could result in failure of the Examining the AD Docket wing strut attach point during Airworthiness Directives; Textron operation, which could result in loss of Aviation Inc. Airplanes You may examine the AD docket on control. the internet at http:// AGENCY: Federal Aviation www.regulations.gov by searching for Related Service Information Under 1 Administration (FAA), DOT. and locating Docket No. FAA–2017– CFR Part 51 ACTION: Notice of proposed rulemaking 0049; or in person at Docket Operations We reviewed Cessna Single Engine (NPRM). between 9 a.m. and 5 p.m., Monday Accomplishment Instructions SEB95– through Friday, except Federal holidays. 19, dated December 29, 1995; and SUMMARY: We propose to adopt a new The AD docket contains this NPRM, the Cessna Single-Engine Accomplishment airworthiness directive (AD) for certain regulatory evaluation, any comments Instructions SEB93–5R1, Revision 1, Textron Aviation Inc. Models 172N, received, and other information. The dated September 8, 1995. As applicable, 172P, 172Q, 172RG, F172N, F172P, street address for Docket Operations the service information describes FR172K, R172K, 182E, 182F, 182G, (phone: 800–647–5527) is in the procedures for repetitively inspecting 182H, 182J, 182K, 182L, 182M, 182N, ADDRESSES section. Comments will be the lower area of the forward cabin 182P, 182Q, 182R, T182, F182P, F182Q, available in the AD docket shortly after doorposts for cracks and repairing any F182RG, R182, TR182, 206, P206/ receipt. cracks found by modifying the area with TP206, U206/TU206, 207/T207, 210–5 FOR FURTHER INFORMATION CONTACT: the applicable Cessna service kit. This (205), 210–5A (205A), 210B, 210C, Bobbie Kroetch, Aerospace Engineer, service information is reasonably 210D, 210E, 210F, and T210F airplanes. Wichita ACO Branch, 1801 Airport available because the interested parties This proposed AD was prompted by a Road, Room 100, Wichita, Kansas have access to it through their normal report of cracks found in the lower area 67209; telephone: (316) 946–4155; fax: course of business or by the means of the forward cabin doorpost bulkhead. (316) 946–4107; email: bobbie.kroetch@ identified in the ADDRESSES section. This proposed AD would require faa.gov or [email protected]. repetitively inspecting the lower Other Related Service Information SUPPLEMENTARY INFORMATION: forward doorpost at the strut attach We reviewed Cessna Single Engine fitting for cracks and making all Comments Invited Service Bulletin SEB93–5, Revision 1, necessary repairs. We are proposing this We invite you to send any written dated September 8, 1995, and Cessna AD to address the unsafe condition on relevant data, views, or arguments about Single Engine Service Bulletin SEB95– these products. this proposal. Send your comments to 19, dated December 29, 1995. As DATES: We must receive comments on an address listed under the ADDRESSES applicable, these service bulletins this proposed AD by March 19, 2018. section. Include ‘‘Docket No. FAA– provide the manufacturer’s ADDRESSES: You may send comments, 2017–0049; Product Identifier 2017–CE– recommended compliance times for the using the procedures found in 14 CFR 031–AD’’ at the beginning of your initial and repetitive inspections. 11.43 and 11.45, by any of the following comments. We specifically invite These service bulletins also specify a methods: comments on the overall regulatory, terminating action for the repetitive • Federal eRulemaking Portal: Go to economic, environmental, and energy inspections when the applicable Cessna http://www.regulations.gov. Follow the aspects of this NPRM. We will consider repair service kit is installed if cracks instructions for submitting comments. all comments received by the closing are found. • Fax: 202–493–2251. date and may amend this NPRM FAA’s Determination • Mail: U.S. Department of because of those comments. Transportation, Docket Operations, We will post all comments we We are proposing this AD because we M–30, West Building Ground Floor, receive, without change, to http:// evaluated all the relevant information Room W12–140, 1200 New Jersey www.regulations.gov, including any and determined the unsafe condition Avenue SE, Washington, DC 20590. personal information you provide. We described previously is likely to exist or

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develop in other products of the same the forward cabin doorposts for cracks Costs of Compliance type design. and repairing any cracks found by We estimate that this proposed AD modifying the area with the applicable Proposed AD Requirements affects 14,653 airplanes of U.S. registry. Cessna service kit. This proposed AD would require We estimate the following costs to repetitively inspecting the lower area of comply with this proposed AD:

ESTIMATED COSTS

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

Inspect the lower area of the forward cabin 1.5 work-hours × $85 per hour = $127.50 Not applicable ...... $127.50 $1,868,257.50 doorposts for cracks.

We estimate the following costs to do required based on the results of the determining the number of aircraft that any necessary repairs that would be proposed inspection. We have no way of might need this repair:

ON-CONDITION COSTS

Cost per Action Labor cost Parts cost product

Install Cessna Single-Engine Service Kit SK172–147 24 work-hours × $85 per hour = $2,040 ...... $646 $2,686 Install Cessna Single-Engine Service Kit SK182–115 24 work-hours × $85 per hour = $2,040 ...... 920 2,960 Install Cessna Single-Engine Service Kit SK206–42C 24 work-hours × $85 per hour = $2,040 ...... 500 2,540 Install Cessna Single-Engine Service Kit SK207–19 ... 24 work-hours × $85 per hour = $2,040 ...... 587 2,627 Install Cessna Single-Engine Service Kit SK210–156 24 work-hours × $85 per hour = $2,040 ...... 952 2,992

Authority for This Rulemaking balloons, airships, domestic business jet The Proposed Amendment transport airplanes, and associated Title 49 of the United States Code Accordingly, under the authority specifies the FAA’s authority to issue appliances to the Director of the Policy and Innovation Division. delegated to me by the Administrator, rules on aviation safety. Subtitle I, the FAA proposes to amend 14 CFR part section 106, describes the authority of Regulatory Findings 39 as follows: the FAA Administrator. Subtitle VII: We determined that this proposed AD Aviation Programs, describes in more would not have federalism implications PART 39—AIRWORTHINESS detail the scope of the Agency’s under Executive Order 13132. This DIRECTIVES authority. We are issuing this rulemaking under proposed AD would not have a ■ 1. The authority citation for part 39 the authority described in Subtitle VII, substantial direct effect on the States, on continues to read as follows: Part A, Subpart III, Section 44701: the relationship between the national ‘‘General requirements.’’ Under that Government and the States, or on the Authority: 49 U.S.C. 106(g), 40113, 44701. section, Congress charges the FAA with distribution of power and § 39.13 [Amended] promoting safe flight of civil aircraft in responsibilities among the various air commerce by prescribing regulations levels of government. ■ For the reasons discussed above, I 2. The FAA amends § 39.13 by adding for practices, methods, and procedures certify this proposed regulation: the following new airworthiness the Administrator finds necessary for (1) Is not a ‘‘significant regulatory directive (AD): safety in air commerce. This regulation action’’ under Executive Order 12866, Textron Aviation Inc.: Docket No. FAA– is within the scope of that authority (2) Is not a ‘‘significant rule’’ under 2017–0049; Product Identifier 2017–CE– because it addresses an unsafe condition the DOT Regulatory Policies and 031–AD. that is likely to exist or develop on Procedures (44 FR 11034, February 26, (a) Comments Due Date products identified in this rulemaking 1979), action. (3) Will not affect intrastate aviation We must receive comments by March 19, This AD is issued in accordance with in Alaska, and 2018. authority delegated by the Executive (4) Will not have a significant (b) Affected ADs Director, Aircraft Certification Service, economic impact, positive or negative, None. as authorized by FAA Order 8000.51C. on a substantial number of small entities In accordance with that order, issuance under the criteria of the Regulatory (c) Applicability of ADs is normally a function of the Flexibility Act. This AD applies to the following Textron Compliance and Airworthiness List of Subjects in 14 CFR Part 39 Aviation Inc. (type certificate previously held Division, but during this transition by Cessna Aircraft Company) model period, the Executive Director has Air transportation, Aircraft, Aviation airplanes, that are certificated in any delegated the authority to issue ADs safety, Incorporation by reference, category: applicable to small airplanes, gliders, Safety. BILLING CODE 4910–13–P

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Table 1 to paragraph (c) of this AD - Affected Models and Serial Numbers

Model Serial N urn hers 172N 17272885 through 17274009 172P 17274010 through 17276654 172Q 17275869, 17275927 through 17275934, 17275952, 17275959, 17275960, 17275962, 17275964, 17275965, 17275967,17275968,17275969,17275971, 17275992, 17275999,17276002, 17276005, 17276029, 17276032, 17276042, 17276045, 17276051, 17276052, 17276054, 17276101,17276109, 17276140,17276147, 17276188,and 17276211 172RG 691, 172RGOOO 1 through 172RG 1191 Fl72N Fl7201910 through Fl7202039 Fl72P F 17202040 through F 17202254 FR172K FR17200656 through FR17200675 Rl72K Rl723200 through Rl723454 182E 18253599 through 18254423 182F 18254424 through 18255058 182G 18255059 through 18255844 182H 634 and 18255846 through 18256684 182J 18256685 through 18257625 182K 18255845, 18257626 through 18257698, and 18257700 through 18258505 182L 18258506 through 18259305 182M 18257699 and 18259306 through 18260055 182N 18260056 through 18260825 182P 675, 18260826 through 18263478, and 18263480 through 18265175

182Q 18263479, 18265176 through 18267301, and 18267303 through 18267715 182R 18268542 through 18268586 182R/Tl82 18267302 and 18267716 through 18268541 Fl82P F 18200001 through F 18200025 Fl82Q F 18200026 through F 18200169 Fl82RG FR1820000lthrough FR18200070 Rl82 Rl8200002 through Rl8200583 Rl82/TR182 Rl8200001 and Rl8200584 through Rl8202039 206 206-0001 through 206-0275 P206/TP206 P206-000 1 through P206-0603 and P20600604 through P2060064 7 U206/TU206 676, U206-0276 through U206-1444, and U20601445 through U20607020

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BILLING CODE 4910–13–C Instructions SEB93–5R1, dated September 8, through U206–1444, and U20601445 through (d) Subject 1995, as applicable. U20607020: Credit will be given for the repair required in paragraph (h) of this AD Joint Aircraft System Component (JASC)/ (i) Repetitive Inspections if done before the effective date of this AD Air Transport Association (ATA) of America (1) If no cracks are found during the initial following the Accomplishment Instructions Code 53, Fuselage. inspection required in paragraph (g) of this in Cessna Single Engine Service Bulletin (e) Unsafe Condition AD, repetitively thereafter inspect every 12 months or 1,000 hours TIS, whichever occurs SEB93–5, dated March 26, 1993. This AD was prompted by a report of first, as long as no cracks are found. Do the (3) For Textron Aviation Inc. Model 207/ cracks found in the lower area of the forward inspections following the applicable service T207 airplanes, S/N 20700001 through cabin doorpost bulkhead. We are issuing this information specified in paragraph (g) of this 20700788: No credit will be given for the AD to detect and address cracking of the AD. repair required in paragraph (h) of this AD wing strut attach point. The unsafe (2) If cracks were found during any if done before the effective date of this AD condition, if not addressed, could result in inspection required in paragraph (g) or following the Accomplishment Instructions failure of the wing in operation, which could paragraph (i)(1) of this AD, repetitively in Cessna Single Engine Service Bulletin result in loss of control. thereafter inspect at intervals not to exceed SEB93–5, dated March 26, 1993. (f) Compliance 1,000 hours TIS after installing the applicable service kit. These repetitive inspections (l) Alternative Methods of Compliance Comply with this AD within the should be done following the applicable (AMOCs) compliance times specified, unless already Accomplishment Instructions of the service (1) The Manager, Wichita ACO Branch, done. information specified in paragraph (g) of this FAA, has the authority to approve AMOCs (g) Inspections AD to the fullest extent while additionally looking for cracks extending beyond the for this AD, if requested using the procedures At the following compliance times, added repair parts. found in 14 CFR 39.19. In accordance with visually inspect the lower forward doorpost 14 CFR 39.19, send your request to your at the strut attach fitting for cracks. Do the (j) Contacting the Manufacturer principal inspector or local Flight Standards inspection following Cessna Single Engine If cracks are found that extend beyond the District Office, as appropriate. If sending Accomplishment Instructions SEB95–19, service kit doublers that were installed as information directly to the manager of the dated December 29, 1995, and Cessna Single- required in paragraph (h) of this AD during certification office, send it to the attention of Engine Accomplishment Instructions SEB93– any inspection required in paragraph (i)(2) of the person identified in paragraph (m) of this 5R1, dated September 8, 1995, as applicable. this AD, before further flight, contact the AD. During the inspection, pay special attention manufacturer at the address specified in (2) Before using any approved AMOC, to the contour of the wing strut support paragraph (m)(2) of this AD for an FAA- notify your appropriate principal inspector, fitting. If cracks are present, they should be approved repair scheme designed specifically or lacking a principal inspector, the manager visible at the intersection of the doorpost and for this AD and incorporate that repair. the forward doorpost bulkhead. of the local flight standards district office/ (1) As of the effective date of this AD, (k) Credit for Previous Actions certificate holding district office. airplanes that have accumulated less than (1) For the following Textron Aviation Inc. (m) Related Information 4,000 hours time-in-service (TIS): Initially model airplanes, credit will be given for the inspect upon reaching 4,000 hours TIS or initial inspection required by paragraph (g) of (1) For more information about this AD, within the next 200 hours TIS after the this AD if done before the effective date of contact Bobbie Kroetch, Aerospace Engineer, effective date of this AD, whichever occurs this AD following the Accomplishment Wichita ACO Branch, 1801 Airport Road, later. Instructions in Cessna Single Engine Service Room 100, Wichita, Kansas 67209; telephone: (2) As of the effective date of this AD, Bulletin SEB93–5, dated March 26, 1993. (316) 946–4155; fax: (316) 946–4107; email: airplanes that have accumulated 4,000 hours (i) Model 210–5 (205) airplanes, serial [email protected] or Wichita-COS@ TIS or more: Initially inspect within the next numbers (S/N) 205–0551 and 205–0556 faa.gov. 200 hours TIS after the effective date of this through 205–0577. (2) For service information identified in AD or within the next 12 months after the (ii) Model 206 airplanes, S/N 206–0094 this AD, contact Textron Aviation Inc., effective date of this AD, whichever occurs and 206–0138 through 206–0275. Textron Aviation Customer Service, One first. (iii) Model P206/TP206 airplanes, S/N Cessna Blvd., Wichita, Kansas 67215; P206–0001 through P206–0603 and telephone: (316) 517–5800; email: (h) Repair Cracks P20600604 through P20600647. If cracks are found during any inspection (iv) Model U206/TU206 airplanes, S/N [email protected]; internet: required in paragraph (g) or paragraph (i) of 676, U206–0276 through U206–1444, and www.txtav.com. You may review this this AD, before further flight, install the U20601445 through U20607020. referenced service information at the FAA, applicable service kit as specified in Cessna (v) Model 207/T207 airplanes, S/N Policy and Innovation Division, 901 Locust, Single Engine Accomplishment Instructions 20700001 through 20700788. Kansas City, Missouri 64106. For information SEB95–19, dated December 29, 1995, and (2) For Textron Aviation Inc. Model U206/ on the availability of this material at the Cessna Single-Engine Accomplishment TU206 airplanes, S/N 676, U206–0276 FAA, call (816) 329–4148.

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Issued in Kansas City, Missouri, on January For service information identified in Discussion 24, 2018. this NPRM, contact Rolls-Royce We were prompted to issue this Pat Mullen, Corporation, 450 South Meridian Street, NPRM based upon several reports of Acting Deputy Director, Policy & Innovation Mail Code NB–02–05, Indianapolis, IN loss of engine power on certain RRC Division, Aircraft Certification Service. 46225; phone: 317–230–3774; email: model 250–C turboshaft engines [FR Doc. 2018–01923 Filed 1–31–18; 8:45 am] [email protected]; installed on single-engine helicopters. BILLING CODE 4910–13–P internet: www.rolls-royce.com. You may One of these instances of power loss view this service information at the resulted in a fatal helicopter accident on FAA, Engine and Propeller Standards May 4, 2016. DEPARTMENT OF TRANSPORTATION Branch, 1200 District Avenue, During the course of the investigation Burlington, MA. For information on the of the 2016 fatal accident, RRC Federal Aviation Administration availability of this material at the FAA, determined that the root cause of this call 781–238–7759. 14 CFR Part 39 engine power loss was the failure of the Examining the AD Docket bearing assembly, P/N 2544198, in the [Docket No. FAA–2017–1118; Product PTG, due to lack of lubrication. Identifier 2017–NE–40–AD] You may examine the AD docket on the internet at http:// Although RRC had issued a service RIN 2120–AA64 www.regulations.gov by searching for bulletin in 2009 to address the failure of and locating Docket No. FAA–2017– this bearing assembly, our risk Airworthiness Directives; Rolls-Royce 1118; or in person at Docket Operations assessment had not supported issuance Corporation Turboshaft Engines between 9 a.m. and 5 p.m., Monday of an AD at that time. Based on more recent service experience, and the fatal AGENCY: through Friday, except Federal holidays. Federal Aviation accident in 2016, we are now proposing Administration (FAA), DOT. The AD docket contains this NPRM, the regulatory evaluation, any comments an AD to remove the affected bearing ACTION: Notice of proposed rulemaking assembly in the PTG and replace it with (NPRM). received, and other information. The street address for Docket Operations a bearing assembly with a new design. This condition, if not addressed, could SUMMARY: We propose to adopt a new (phone: 800–647–5527) is in the result in failure of the PTG, failure of airworthiness directive (AD) for certain ADDRESSES section. Comments will be the engine, in-flight shutdown, and Rolls-Royce Corporation (RRC) model available in the AD docket shortly after forced autorotation landing or accident. 250–C turboshaft engines. This receipt. proposed AD was prompted by several FOR FURTHER INFORMATION CONTACT: John Related Service Information reports of engine power loss, one of Tallarovic, Aerospace Engineer, Chicago We reviewed Rolls-Royce Corporation which resulted in a fatal helicopter ACO Branch, FAA, 2300 E. Devon Ave., Commercial Engine Bulletin (CEB) 1402, accident. This proposed AD would Des Plaines, IL 60018; phone: 847–294– Revision 2, dated February 4, 2009. The require removal of the bearing assembly, 8180; fax: 847–294–7834; email: CEB provides guidance on replacing the part number (P/N) 2544198, in the [email protected]. P/N 2544198 bearing assembly in the power turbine governor (PTG) and its SUPPLEMENTARY INFORMATION: PTG with a bearing assembly eligible for replacement with a bearing assembly installation. eligible for installation. We are Comments Invited proposing this AD to address the unsafe We invite you to send any written FAA’s Determination condition on these products. relevant data, views, or arguments about We are proposing this AD because we DATES: We must receive comments on this proposal. Send your comments to evaluated all the relevant information this proposed AD by March 19, 2018. an address listed under the ADDRESSES and determined the unsafe condition ADDRESSES: You may send comments, section. Include ‘‘Docket No. FAA– described previously is likely to exist or using the procedures found in 14 CFR 2017–1118; Product Identifier 2017– develop in other products of the same 11.43 and 11.45, by any of the following NE–40–AD’’ at the beginning of your type design. methods: comments. We specifically invite Proposed AD Requirements • Federal eRulemaking Portal: Go to comments on the overall regulatory, http://www.regulations.gov. Follow the economic, environmental, and energy This proposed AD would require instructions for submitting comments. aspects of this NPRM. We will consider removal of the affected bearing assembly • Fax: 202–493–2251. all comments received by the closing in the PTG and its replacement with a • Mail: U.S. Department of date and may amend this NPRM bearing assembly eligible for Transportation, Docket Operations, because of those comments. installation. M–30, West Building Ground Floor, We will post all comments we Costs of Compliance Room W12–140, 1200 New Jersey receive, without change, to http:// Avenue SE, Washington, DC 20590. www.regulations.gov, including any We estimate that this proposed AD • Hand Delivery: Deliver to Mail personal information you provide. We affects 2,928 engines installed on address above between 9 a.m. and 5 will also post a report summarizing each airplanes of U.S. registry. p.m., Monday through Friday, except substantive verbal contact we receive We estimate the following costs to Federal holidays. about this NPRM. comply with this proposed AD:

ESTIMATED COSTS

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

Remove and replace PTG bearing assembly 8 work-hours × $85 per hour = $680 ...... $1,700 $2,380 $6,968,640

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Authority for This Rulemaking List of Subjects in 14 CFR Part 39 FIGURE 1 TO PARAGRAPH (g)— COMPLIANCE TIMES Title 49 of the United States Code Air transportation, Aircraft, Aviation specifies the FAA’s authority to issue safety, Incorporation by reference, PTG operational hours rules on aviation safety. Subtitle I, Safety. (time since new/time Compliance time since last overhaul) section 106, describes the authority of The Proposed Amendment the FAA Administrator. Subtitle VII: 0 to 750 ...... Not later than 750 hours. Aviation Programs, describes in more Accordingly, under the authority 751 to 1000 ...... Not later than 1,000 hours. detail the scope of the Agency’s delegated to me by the Administrator, 1001 to 1250 ...... Not later than 1,250 hours. authority. the FAA proposes to amend 14 CFR part 1251 to 1500 ...... Not later than 1,500 hours. 39 as follows: 1501 or greater ...... At the next removal of the We are issuing this rulemaking under PTG for any reason. the authority described in Subtitle VII, PART 39—AIRWORTHINESS Part A, Subpart III, Section 44701: DIRECTIVES (2) After such removal, replace the affected ‘‘General requirements.’’ Under that bearing assembly in the PTG with a part section, Congress charges the FAA with ■ 1. The authority citation for part 39 eligible for installation before further flight. promoting safe flight of civil aircraft in continues to read as follows: air commerce by prescribing regulations (h) Alternative Methods of Compliance (AMOCs) for practices, methods, and procedures Authority: 49 U.S.C. 106(g), 40113, 44701. (1) The Manager, Chicago ACO Branch, the Administrator finds necessary for § 39.13 [Amended] FAA, has the authority to approve AMOCs safety in air commerce. This regulation ■ is within the scope of that authority 2. The FAA amends § 39.13 by adding for this AD, if requested using the procedures because it addresses an unsafe condition the following new airworthiness found in 14 CFR 39.19. In accordance with that is likely to exist or develop on directive (AD): 14 CFR 39.19, send your request to your products identified in this rulemaking Roll-Royce Corporation (Type Certificate principal inspector or local Flight Standards action. previously held by Allison Engine District Office, as appropriate. If sending Company): Docket No. FAA–2017–1118; information directly to the manager of the This AD is issued in accordance with Product Identifier 2017–NE–40–AD. Chicago ACO Branch, send it to the attention authority delegated by the Executive (a) Comments Due Date of the person identified in paragraph (i)(1) of Director, Aircraft Certification Service, this AD. as authorized by FAA Order 8000.51C. We must receive comments by March 19, (2) Before using any approved AMOC, 2018. In accordance with that order, issuance notify your appropriate principal inspector, of ADs is normally a function of the (b) Affected ADs or lacking a principal inspector, the manager Compliance and Airworthiness None. of the local flight standards district office/ Division, but during this transition certificate holding district office. period, the Executive Director has (c) Applicability delegated the authority to issue ADs This AD applies to Rolls-Royce (i) Related Information applicable to engines, propellers, and Corporation (RRC) model 250–C10D, 250– (1) For more information about this AD, associated appliances to the Manager, C18, 250–C18A, 250–C18B, 250–C18C, 250– contact John Tallarovic, Aerospace Engineer, Engine and Propeller Standards Branch, C19, 250–C20, 250–C20B, 250–C20C, 250– Chicago ACO Branch, FAA, 2300 E Devon Policy and Innovation Division. C20F, 250–C20J, 250–C20R, 250–C20R/1, Ave., Des Plaines, IL 60018; phone: 847–294– 250–C20R/2, 250–C20R/4, 250–C20S, 250– 8180; fax: 847–294–7834; email: C20W, 250–C28, 250–C28B, 250–C28C, 250– Regulatory Findings [email protected]. C30, 250–C30G, 250–C30G/2, 250–C30M, We determined that this proposed AD 250–C30P, 250–C30S, and 250–C30U (2) For service information identified in would not have federalism implications turboshaft engines. this AD, contact Rolls-Royce Corporation, 450 South Meridian Street, Mail Code NB– under Executive Order 13132. This (d) Subject 02–05, Indianapolis, IN 46225; phone: 317– proposed AD would not have a Joint Aircraft System Component (JASC) 230–3774; email: indy.pubs.services@rolls- substantial direct effect on the States, on Code 7323, Turbine Governor. royce.com; internet: www.rolls-royce.com. the relationship between the national (e) Unsafe Condition You may view this referenced service Government and the States, or on the information at the FAA, Engine and Propeller This AD was prompted by several reports distribution of power and Standards Branch, 1200 District Avenue, of loss of power, one of which resulted in a responsibilities among the various Burlington, MA 01803. For information on levels of government. fatal helicopter accident. We are issuing this AD to prevent failure of the bearing assembly the availability of this material at the FAA, For the reasons discussed above, I in the power turbine governor (PTG). The call 781–238–7759. certify this proposed regulation: unsafe condition, if not addressed, could Issued in Burlington, Massachusetts, on (1) Is not a ‘‘significant regulatory result in failure of the PTG, failure of the January 25, 2018. action’’ under Executive Order 12866, engine, in-flight shutdown, and forced autorotation landing or accident. Robert J. Ganley, (2) Is not a ‘‘significant rule’’ under Manager, Engine and Propeller Standards (f) Compliance the DOT Regulatory Policies and Branch, Aircraft Certification Service. Comply with this AD within the Procedures (44 FR 11034, February 26, [FR Doc. 2018–01900 Filed 1–31–18; 8:45 am] 1979), compliance times specified, unless already done. BILLING CODE 4910–13–P (3) Will not affect intrastate aviation in Alaska, and (g) Required Actions (1) Remove the bearing assembly, part (4) Will not have a significant number 2544198, from the PTG in economic impact, positive or negative, accordance with the compliance times in on a substantial number of small entities Figure 1 to paragraph (g) of this AD, or under the criteria of the Regulatory within 90 days after the effective date of this Flexibility Act. AD, whichever occurs later.

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DEPARTMENT OF TRANSPORTATION FAA Order 7400.11B, Airspace docket numbers and be submitted in Designations and Reporting Points, and triplicate to the address listed above. Federal Aviation Administration subsequent amendments can be viewed Commenters wishing the FAA to online at http://www.faa.gov/air_traffic/ acknowledge receipt of their comments 14 CFR Part 71 publications/. For further information, on this notice must submit with those [Docket No. FAA–2017–1083; Airspace you can contact the Airspace Policy comments a self-addressed, stamped Docket No. 17–ACE–13] Group, Federal Aviation postcard on which the following Administration, 800 Independence statement is made: ‘‘Comments to Proposed Amendment of Class D and Avenue SW, Washington, DC 20591; Docket No. FAA–2017–1083; Airspace E Airspace; Kansas City, MO; and telephone: (202) 267–8783. The Order is Docket No. 17–ACE–13.’’ The postcard Revocation of Class E Airspace; also available for inspection at the will be date/time stamped and returned Kansas City, MO National Archives and Records to the commenter. Administration (NARA). For All communications received before AGENCY: Federal Aviation the specified closing date for comments Administration (FAA), DOT. information on the availability of FAA Order 7400.11B at NARA, call (202) will be considered before taking action ACTION: Notice of proposed rulemaking 741–6030, or go to https:// on the proposed rule. The proposal (NPRM). www.archives.gov/federal-register/cfr/ contained in this notice may be changed SUMMARY: This action proposes to ibr-locations.html. in light of the comments received. A amend Class D airspace at Charles B. FAA Order 7400.11, Airspace report summarizing each substantive Wheeler Downtown Airport, Kansas Designations and Reporting Points, is public contact with FAA personnel City, MO; remove Class E airspace published yearly and effective on concerned with this rulemaking will be designated as an extension to Class D September 15. filed in the docket. airspace at Charles B. Wheeler FOR FURTHER INFORMATION CONTACT: Availability of NPRMs Downtown Airport; and amend Class E Jeffrey Claypool, Federal Aviation An electronic copy of this document airspace extending upward from 700 Administration, Operations Support may be downloaded through the feet above the surface at Kansas City Group, Central Service Center, 10101 internet at http://www.regulations.gov. International Airport, Kansas City, MO, Hillwood Parkway, Fort Worth, TX Recently published rulemaking and Charles B. Wheeler Downtown 76177; telephone (817) 222–5711. documents can also be accessed through Airport. The FAA is proposing this SUPPLEMENTARY INFORMATION: action due to the decommissioning of the FAA’s web page at http:// Authority for This Rulemaking www.faa.gov/air_traffic/publications/ the Riverside VHF omnidirectional _ range (VOR) facility, which provided airspace amendments/. The FAA’s authority to issue rules You may review the public docket navigation guidance for the instrument regarding aviation safety is found in procedures to Charles B. Wheeler containing the proposal, any comments Title 49 of the United States Code. received, and any final disposition in Downtown Airport. The VOR has been Subtitle I, Section 106 describes the decommissioned as part of the VOR person in the Dockets Office (see the authority of the FAA Administrator. ADDRESSES section for the address and Minimum Operational Network (MON) Subtitle VII, Aviation Programs, Program. This action also would amend phone number) between 9:00 a.m. and describes in more detail the scope of the 5:00 p.m., Monday through Friday, the airspace designations of Class D agency’s authority. This rulemaking is airspace and Class E airspace extending except federal holidays. An informal promulgated under the authority docket may also be examined during upward from 700 feet above the surface described in Subtitle VII, Part A, for these airports. Additionally, the normal business hours at the Federal Subpart I, Section 40103. Under that Aviation Administration, Air Traffic geographic coordinates and airport section, the FAA is charged with name are being updated to coincide Organization, Central Service Center, prescribing regulations to assign the use Operations Support Group, 10101 with the FAA’s aeronautical database. of airspace necessary to ensure the This action is necessary for the safety Hillwood Parkway, Fort Worth, TX safety of aircraft and the efficient use of 76177. and management of instrument flight airspace. This regulation is within the rules (IFR) operations at these airports. scope of that authority as it would Availability and Summary of DATES: Comments must be received on support IFR operations at Charles B. Documents for Incorporation by or before March 19, 2018. Wheeler Downtown Airport, and Kansas Reference ADDRESSES: Send comments on this City International Airport, Kansas City, This document proposes to amend proposal to the U.S. Department of MO. FAA Order 7400.11B, Airspace Transportation, Docket Operations, 1200 Comments Invited Designations and Reporting Points, New Jersey Avenue SE, West Building dated August 3, 2017, and effective Ground Floor, Room W12–140, Interested parties are invited to September 15, 2017. FAA Order Washington, DC 20590; telephone (202) participate in this proposed rulemaking 7400.11B is publicly available as listed 366–9826, or (800) 647–5527. You must by submitting such written data, views, in the ADDRESSES section of this identify FAA Docket No. FAA–2017– or arguments, as they may desire. document. FAA Order 7400.11B lists 1083; Airspace Docket No. 17–ACE–13 Comments that provide the factual basis Class A, B, C, D, and E airspace areas, at the beginning of your comments. You supporting the views and suggestions air traffic service routes, and reporting may also submit comments through the presented are particularly helpful in points. internet at http://www.regulations.gov. developing reasoned regulatory You may review the public docket decisions on the proposal. Comments The Proposal containing the proposal, any comments are specifically invited on the overall The FAA is proposing an amendment received, and any final disposition in regulatory, aeronautical, economic, to Title 14 Code of Federal Regulations person in the Dockets Office between environmental, and energy-related (14 CFR) part 71 that would: 9:00 a.m. and 5:00 p.m., Monday aspects of the proposal. Amend the Class D airspace at Charles through Friday, except federal holidays. Communications should identify both B. Wheeler Downtown Airport by

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updating the header of the airspace designations listed in this document ACE MO D Kansas City, MO [Amended] designation to Kansas City, MO, (from will be published subsequently in the Charles B. Wheeler Downtown Airport, MO Kansas City Charles B. Wheeler Order. (Lat. 39°07′23″ N, long. 94°35′34″ W) Downtown Airport, MO) to comply with Regulatory Notices and Analyses Charles B. Wheeler Downtown RWY 19 LOC FAA Order 7400.2L, Procedures for (Lat. 39°06′50″ N, long. 94°35′44″ W) Handling Airspace Matters; adding an The FAA has determined that this Charles B. Wheeler Downtown RWY 03 LOC extension 1 mile each side of the 012° proposed regulation only involves an (Lat. 39°07′40″ N, long. 94°35′17″ W) bearing from the Charles B. Wheeler established body of technical That airspace extending upward from the Downtown RWY 19 LOC from the 4.2- regulations for which frequent and surface to and including 3,300 feet MSL mile radius to 4.4 miles from the airport; routine amendments are necessary to within a 4.2-mile radius of Charles B. adding an extension 1 mile each side of keep them operationally current, is non- ° Wheeler Downtown Airport, excluding that the 013 bearing from the airport from controversial and unlikely to result in airspace within the Kansas City, MO Class B the 4.2-mile radius to 4.3 miles north of adverse or negative comments. It, airspace area; and within 1 mile each side of the airport; adding an extension 1 mile therefore: (1) Is not a ‘‘significant the 012° bearing from the Charles B. Wheeler ° each side of the 215 bearing from the regulatory action’’ under Executive Downtown RWY 19 LOC, extending from the Charles B. Wheeler Downtown RWY 03 Order 12866; (2) is not a ‘‘significant 4.2-mile radius to 4.4 miles north of the LOC from the 4.2-mile radius to 4.5 rule’’ under DOT Regulatory Policies airport; and within 1 mile each side of the miles northeast of the airport; adding an and Procedures (44 FR 11034; February 013° bearing from the airport, extending from ° extension 1 mile each side of the 218 26, 1979); and (3) does not warrant the 4.2-mile radius to 4.3 miles north of the bearing from the airport from the 4.2- preparation of a regulatory evaluation as airport; and within 1 mile each side of the mile radius to 5 miles south of the the anticipated impact is so minimal. 215° bearing from the Charles B. Wheeler airport; and updating the geographic Since this is a routine matter that will Downtown RWY 03 LOC, extending from the coordinates of the airport to coincide only affect air traffic procedures and air 4.2-mile radius to 4.5 miles south of the with the FAA’s aeronautical database; navigation, it is certified that this airport; and within 1 mile each side of the Remove the Class E airspace proposed rule, when promulgated, 218° bearing from the airport, extending from designated as an extension to Class D would not have a significant economic the 4.2-mile radius to 5 miles south of the airspace at Charles B. Wheeler impact on a substantial number of small airport. Downtown Airport as the airspace is no entities under the criteria of the Paragraph 6004 Class E Airspace Areas longer required; and Regulatory Flexibility Act. Amend Class E airspace extending Designated as an Extension to a Class D or upward from 700 feet above the surface Environmental Review Class E Surface Area. at Kansas City, MO, by updating the This proposal will be subject to an * * * * * header of the airspace designation to environmental analysis in accordance ACE MO E4 Kansas City Charles B. Kansas City, MO, (from Kansas City with FAA Order 1050.1F, Wheeler Downtown Airport, MO [Removed] International Airport, MO) to comply ‘‘Environmental Impacts: Policies and with FAA Order 7400.2L; updating the Procedures’’ prior to any FAA final Paragraph 6005 Class E Airspace Areas Extending Upward From 700 Feet or More name and geographic coordinates of regulatory action. Charles B. Wheeler Downtown Airport Above the Surface of the Earth. (previously Kansas City Downtown List of Subjects in 14 CFR Part 71 * * * * * Airport) and the geographic coordinates Airspace, Incorporation by reference, ACE MO E5 Kansas City, MO [Amended] of Sherman Army Airfield (AAF), KS, to Navigation (air). coincide with the FAA’s aeronautical Kansas City International Airport, MO database; removing the Kansas City The Proposed Amendment (Lat. 39°17′51″ N, long. 94°42′50″ W) VORTAC, DOTTE LOM, Riverside VOR/ Charles B. Wheeler Downtown Airport, MO Accordingly, pursuant to the ° ′ ″ ° ′ ″ DME, ILS RWY 19R localizer, ILS RWY authority delegated to me, the Federal (Lat. 39 07 23 N, long. 94 35 34 W) 19 localizer, ILS RWY 1L localizer, and Charles B. Wheeler Downtown RWY 03 LOC Aviation Administration proposes to ° ′ ″ ° ′ ″ ILS RWY 1R localizer from the airspace amend 14 CFR part 71 as follows: (Lat. 39 07 40 N, long. 94 35 17 W) description; removing all current Sherman Army Airfield (AAF), KS extensions at Kansas City International PART 71—DESIGNATION OF CLASS A, (Lat. 39°22′03″ N, long. 94°54′52″ W.) Airport and Charles B. Wheeler B, C, D, AND E AIRSPACE AREAS; AIR That airspace extending upward from 700 Downtown Airport; and adding an TRAFFIC SERVICE ROUTES; AND feet above the surface within a 7.6-mile extension 2 miles each side of the 215° REPORTING POINTS radius of Kansas City International Airport; bearing from the Charles B. Wheeler and within a 6.7-mile radius of Charles B. Downtown RWY 03 LOC from the 6.7- ■ 1. The authority citation for 14 CFR Wheeler Downtown Airport; and within 2 mile radius to 8.7 miles south of the part 71 continues to read as follows: miles each side of the 215° bearing from the Charles B. Wheeler Downtown Airport. Authority: 49 U.S.C. 106(f), 106(g); 40103, Charles B. Wheeler Downtown RWY 03 LOC, Airspace reconfiguration is necessary 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, extending from the 6.7-mile radius to 8.7 due to the decommissioning of the 1959–1963 Comp., p. 389. miles south of the Charles B. Wheeler Riverside VOR as part of the VOR MON Downtown Airport; and within a 6.5-mile Program and for the safety and § 71.1 [Amended] radius of the Sherman AAF. management of IFR operations at these ■ 2. The incorporation by reference in airports. 14 CFR 71.1 of FAA Order 7400.11B, Issued in Fort Worth, Texas, on January 24, Class D and E airspace designations Airspace Designations and Reporting 2018. are published in paragraphs 5000, 6004, Points, dated August 3, 2017, and Christopher L. Southerland, and 6005, respectively, of FAA Order effective September 15, 2017, is Acting Manager, Operations Support Group, 7400.11B, dated August 3, 2017, and amended as follows: ATO Central Service Center. effective September 15, 2017, which is [FR Doc. 2018–01795 Filed 1–31–18; 8:45 am] Paragraph 5000 Class D Airspace. incorporated by reference in 14 CFR BILLING CODE 4910–13–P 71.1. The Class D and E airspace * * * * *

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DEPARTMENT OF TRANSPORTATION Order 7400.11B at NARA, call (202) on the proposed rule. The proposal 741–6030 or go to http:// contained in this notice may be changed Federal Aviation Administration www.archives.gov/federal-register/cfr/ in light of the comments received. A ibr-locations.html. report summarizing each substantive 14 CFR Part 71 FAA Order 7400.11, Airspace public contact with FAA personnel [Docket No. FAA–2016–9378; Airspace Designations and Reporting Points, is concerned with this rulemaking will be Docket No. 17–ASW–13] published yearly and effective on filed in the docket. September 15. Availability of NPRMs Proposed Establishment of Class D FOR FURTHER INFORMATION CONTACT: and E Airspace, and Amendment of Rebecca Shelby, Federal Aviation An electronic copy of this document Class E Airspace; Austin, TX Administration, Operations Support may be downloaded through the Group, Central Service Center, 10101 internet at http://www.regulations.gov. AGENCY: Federal Aviation Hillwood Parkway, Fort Worth, TX Recently published rulemaking Administration (FAA), DOT. 76177; telephone (817) 222–5857. documents can also be accessed through ACTION: Notice of proposed rulemaking the FAA’s web page at http:// SUPPLEMENTARY INFORMATION: (NPRM). www.faa.gov/air_traffic/publications/ Authority for This Rulemaking airspace_amendments/. SUMMARY: This action proposes to You may review the public docket establish Class D airspace, Class E The FAA’s authority to issue rules containing the proposal, any comments surface airspace, and amend Class E regarding aviation safety is found in received, and any final disposition in airspace extending upward from 700 Title 49 of the United States Code. person in the Dockets Office (see the Subtitle I, Section 106 describes the feet above the surface at Austin ADDRESSES section for the address and Executive Airport, Austin, TX. The FAA authority of the FAA Administrator. phone number) between 9:00 a.m. and conducted an airspace review and Subtitle VII, Aviation Programs, 5:00 p.m., Monday through Friday, determined that airspace redesign is describes in more detail the scope of the except federal holidays. An informal necessary due to the establishment of an agency’s authority. This rulemaking is docket may also be examined during air traffic control tower at the airport. promulgated under the authority normal business hours at the Federal This action would enhance the safety described in Subtitle VII, Part A, Aviation Administration, Air Traffic and management of instrument flight Subpart I, Section 40103. Under that Organization, Central Service Center, rules (IFR) operation at the airport. An section, the FAA is charged with Operations Support Group, 10101 editorial change also would be made prescribing regulations to assign the use Hillwood Parkway, Fort Worth, TX removing the city associated with the of airspace necessary to ensure the 76177. airport name in the airspace safety of aircraft and the efficient use of designation. airspace. This regulation is within the Availability and Summary of scope of that authority as it amends Documents for Incorporation by DATES: Comments must be received on Class D and E airspace at Austin Reference or before March 19, 2018. Executive Airport in support of IFR This document proposes to amend ADDRESSES: Send comments on this operations at the airport. FAA Order 7400.11B, Airspace proposal to the U.S. Department of Comments Invited Designations and Reporting Points, Transportation, Docket Operations, dated August 3, 2017, and effective West Building Ground Floor, Room Interested parties are invited to September 15, 2017. FAA Order W12–140, 1200 New Jersey Avenue SE, participate in this proposed rulemaking 7400.11B is publicly available as listed Washington, DC 20590; telephone (202) by submitting such written data, views, in the ADDRESSES section of this 366–9826, or (800) 647–5527. You must or arguments, as they may desire. document. FAA Order 7400.11B lists identify FAA Docket No. FAA–2017– Comments that provide the factual basis Class A, B, C, D, and E airspace areas, 9378; Airspace Docket No. 17–ASW–13, supporting the views and suggestions air traffic service routes, and reporting at the beginning of your comments. You presented are particularly helpful in points. may also submit comments through the developing reasoned regulatory internet at http://www.regulations.gov. decisions on the proposal. Comments The Proposal You may review the public docket are specifically invited on the overall The FAA is proposing an amendment containing the proposal, any comments regulatory, aeronautical, economic, to Title 14 Code of Federal Regulations received, and any final disposition in environmental, and energy-related (14 CFR) part 71 by: person in the Dockets Office between aspects of the proposal. Establishing Class D airspace at 9:00 a.m. and 5:00 p.m., Monday Communications should identify both Austin Executive Airport, Austin, TX, through Friday, except federal holidays. docket numbers and be submitted in within a 4.1-mile radius of the airport; FAA Order 7400.11B, Airspace triplicate to the address listed above. Establishing Class E surface airspace Designations and Reporting Points, and Commenters wishing the FAA to within a 4.1-mile radius of Austin subsequent amendments can be viewed acknowledge receipt of their comments Executive Airport, Austin, TX; online at http://www/.faa.gov/air_ on this notice must submit with those Amending Class E airspace extending traffic/publications/. For further comments a self-addressed, stamped upward from 700 feet above the surface information, you can contact the postcard on which the following to within a 6.3-mile radius (decreased Airspace Policy Group, Federal Aviation statement is made: ‘‘Comments to from a 6.5-mile radius) of Austin Administration, 800 Independence Docket No. FAA–2017–9378/Airspace Executive Airport, and within 2 miles Avenue SW, Washington, DC 20591; Docket No. 17–ASW–13.’’ The postcard each side of the 131° bearing (from the telephone; (202) 267–8783. The Order is will be date/time stamped and returned 132° bearing) from the airport extending also available for inspection at the to the commenter. from the 6.3-mile radius to 11.3 miles National Archives and Records All communications received before (increased from a 10.4-miles) southeast Administration (NARA). For the specified closing date for comments of the airport, and within 2 miles each information on the availability of FAA will be considered before taking action side of the 311° bearing from the airport

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extending from 6.3-mile radius to 10.5 PART 71—DESIGNATION OF CLASS A, Executive Airport extending from the 6.3- miles (decreased from 11.2 miles) B, C, D, AND E AIRSPACE AREAS; AIR mile radius to 11.3 miles southeast of the northwest of the airport. Also, due to a TRAFFIC SERVICE ROUTES; AND airport, and within 2 miles each side of the 311° bearing from Austin Executive Airport recent change to FAA Order 7400.2L, REPORTING POINTS extending from the 6.3-mile radius to 10.5 Procedures for Handling Airspace miles northwest of the airport. Matters, dated October 12, 2017, the ■ 1. The authority citation for part 71 name of the city associated with the continues to read as follows: Issued in Fort Worth, Texas, on January 23, 2018. airport is removed from the airspace Authority: 49 U.S.C. 106(f), 106(g); 40103, Christopher L. Southerland, designation. 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–1963 Comp., p. 389. Acting Manager, Operations Support Group, Controlled airspace is necessary for ATO Central Service Center. the safety and management of Standard § 71.1 [Amended] Instrument Approach Procedures [FR Doc. 2018–01796 Filed 1–31–18; 8:45 am] ■ 2. The incorporation by reference in BILLING CODE 4910–13–P (SIAPs) for IFR operations at this 14 CFR 71.1 of FAA Order 7400.11B, airport. Airspace Designations and Reporting Class D and E airspace designations Points, dated August 3, 2017, and ENVIRONMENTAL PROTECTION are published in paragraph 5000, 6002, effective September 15, 2017, is AGENCY and 6005, respectively, of FAA Order amended as follows: 7400.11B, dated August 3, 2017, and 40 CFR Part 52 effective September 15, 2017, which is Paragraph 5000 Class D Airspace. incorporated by reference in 14 CFR * * * * * [EPA–R08–0AR–2017–0753; FRL–9973–45– Region 8] 71.1. The Class D and E airspace ASW TX D Austin, TX [New] designations listed in this document Approval and Promulgation of Air will be published subsequently in the Austin Executive Airport, TX (Lat. 30°23′51″ N, long. 97°33′59″ W) Quality Implementation Plans; State of Order. That airspace extending upward from the Colorado; Revisions to the Regulatory Notices and Analyses surface to and including 3,000 feet MSL Transportation Conformity within a 4.1-mile radius of Austin Executive Consultation Process The FAA has determined that this Airport. This Class D airspace area is regulation only involves an established effective during the specific dates and times AGENCY: Environmental Protection body of technical regulations for which established in advance by a Notice to Agency (EPA). frequent and routine amendments are Airmen. The effective date and time will ACTION: Proposed rule. necessary to keep them operationally thereafter be continuously published in the current, is non-controversial and Chart Supplement. SUMMARY: The Environmental Protection unlikely to result in adverse or negative * * * * * Agency (EPA) is proposing to approve a State Implementation Plan (SIP) comments. It, therefore: (1) Is not a Paragraph 6002 Class E Surface Area ‘‘significant regulatory action’’ under Airspace. revision submitted by Colorado on May 16, 2017. The May 16, 2017 SIP revision Executive Order 12866; (2) is not a * * * * * ‘‘significant rule’’ under DOT addresses minor changes and Regulatory Policies and Procedures (44 ASW TX E2 Austin, TX [New] typographical corrections to the FR 11034; February 26, 1979); and (3) Austin Executive Airport, TX transportation conformity requirements does not warrant preparation of a (Lat. 30°23′51″ N, long. 97°33′59″ W) of Colorado’s Regulation Number 10 regulatory evaluation as the anticipated That airspace within a 4.1-mile radius of ‘‘Criteria for Analysis of Conformity.’’ impact is so minimal. Since this is a Austin Executive Airport. This Class E These actions are being taken under routine matter that will only affect air airspace area is effective during the specific section 110 of the Clean Air Act. traffic procedures and air navigation, it dates and times established in advance by a DATES: Written comments must be Notice to Airmen. The effective date and time received on or before March 5, 2018. is certified that this rule, when will thereafter be continuously published in promulgated, would not have a the Chart Supplement. ADDRESSES: Submit your comments, significant economic impact on a * * * * * identified by Docket ID No. EPA–R08– substantial number of small entities OAR–2017–0753 at https:// under the criteria of the Regulatory Paragraph 6005 Class E Airspace Areas www.regulations.gov. Follow the online Flexibility Act. Extending Upward From 700 Feet or More instructions for submitting comments. Above the Surface of the Earth. Once submitted, comments cannot be Environmental Review * * * * * edited or removed from This proposal will be subject to an ASW TX E5 Austin, TX [Amended] www.regulations.gov. The EPA may environmental analysis in accordance Point of Origin publish any comment received to the with FAA Order 1050.1F, (Lat. 30°17′55″ N, long. 97°42′06″ W) public docket. Do not submit ‘‘Environmental Impacts: Policies and Lakeway Airpark, TX electronically any information you Procedures’’ prior to any FAA final (Lat. 30°21′27″ N, long. 97°59′40″ W) consider to be Confidential Business regulatory action. Austin Executive Airport, TX Information (CBI) or other information, (Lat. 30°23′51″ N, long. 97°33′59″ W) the disclosure of which is restricted by Lists of Subjects in 14 CFR Part 71 Lago Vista-Rusty Allen Airport, TX ° ′ ″ ° ′ ″ statute. Multimedia submissions (audio, Airspace, Incorporation by reference, (30 29 55 N, long. 97 58 59 W) video, etc.) must be accompanied by a Navigation (air). That airspace extending upward from 700 written comment. The written comment feet above the surface within a 14-mile radius is considered the official comment and The Proposed Amendment of the Point of Origin, and within a 6.4-mile radius of Lakeway Airpark, and within a 6.4- should include discussion of all points Accordingly, pursuant to the mile radius of Lago Vista-Rusty Allen you wish to make. The EPA will authority delegated to me, the Federal Airport, and within a 6.3-mile radius of generally not consider comments or Aviation Administration proposes to Austin Executive Airport, and within 2 miles comment contents located outside of the amend 14 CFR part 71 as follows: each side of the 131° bearing from Austin primary submission (i.e., on the web,

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cloud, or other file sharing system). For 8. Make sure to submit your Wolk, Executive Director of the additional submission methods, the full comments by the comment period Colorado Department of Public Health EPA public comment policy, deadline identified. and Environment (CDPHE), and on information about CBI or multimedia behalf of the Governor, to the EPA on II. Background submissions, and general guidance on May 16, 2017. making effective comments, please visit The EPA is proposing approval of We have evaluated the State’s May 16, https://www.epa.gov/dockets/ minor revisions to Colorado’s 2017 submittal for Regulation No. 10 commenting-epa-dockets. Regulation Number 10 which is entitled and have determined that the State met ‘‘Criteria for Analysis of Conformity’’ the requirements for reasonable notice FOR FURTHER INFORMATION CONTACT: Tim (hereafter, ‘‘Regulation No. 10’’). We Russ, Air Program, U.S. Environmental and public hearing under section note the most recent prior SIP revisions 110(a)(2) of the CAA. By operation of Protection Agency, Region 8, Mailcode to Regulation No. 10, that we approved, 8P–AR, 1595 Wynkoop Street, Denver, law under section 110(k)(1)(B) of the occurred on March 4, 2014 (79 FR CAA, the State’s May 16, 2017 submittal Colorado 80202–1129, (303) 312–6479, 12079). or [email protected]. was deemed complete by the EPA on The purpose of Regulation No. 10 is November 25, 2017. SUPPLEMENTARY INFORMATION: to address the transportation conformity SIP requirements of section 176(c) of the IV. EPA’s Evaluation of the State’s May I. General Information Clean Air Act (CAA) and 40 CFR 16, 2017 Submittal What should I consider as I prepare my 51.390(b). In addition, Regulation No. The EPA has reviewed the revisions comments for the EPA? 10 also addresses the following to Regulation No. 10 that were transportation conformity SIP element submitted by the State on May 16, 2017 a. Submitting CBI. Do not submit CBI requirements; 40 CFR 93.105 which and we are proposing to approve these to the EPA through www.regulations.gov formalizes the consultation procedures; revisions. We reviewed the State’s or email. Clearly mark the part or all of 40 CFR 93.122(a)(4)(ii) which addresses submittal to assure consistency with the the information that you claim to be written commitments to control transportation conformity requirements CBI. For CBI information in a disk or CD measures that are not included in a in 40 CFR 51.390(b), that establish the ROM that you mail to the EPA, mark the Metropolitan Planning Organization’s requirements for conformity outside of the disk or CD ROM as CBI (MPOs) transportation plan and consultation SIPs and to the and then identify electronically within transportation improvement program transportation conformity requirements the disk or CD ROM the specific that must be obtained prior to a in 40 CFR 93.105, 93.122(a)(4)(ii) and information that is claimed as CBI. In conformity determination; and 40 CFR 93.125(c).23 We also consulted our addition to one complete version of the 93.125(c) which addresses written document ‘‘Guidance for Developing comment that includes information commitments to mitigation measures Transportation Conformity State claimed as CBI, a copy of the comment that must be obtained prior to a project- Implementation Plans (SIPs),’’ EPA– that does not contain the information level conformity determination.1 420–B–09–001, dated January 2009.4 claimed as CBI must be submitted for Our review regarding the revisions to inclusion in the public docket. III. What was the State’s process to submit a SIP revision to the EPA? Regulation No. 10 included the Information so marked will not be following: disclosed except in accordance with Section 110(k) of the CAA addresses (a) The Title to Regulation No. 10. The procedures set forth in 40 CFR part 2. our actions on submissions of revisions revisions to the title included b. Tips for Preparing Your Comments. to a SIP. The CAA requires states to typographic changes to the title such as When submitting comments, remember observe certain procedural requirements capitalization, use of lower case letters to: in developing SIP revisions for to remove capitalization of particular 1. Identify the rulemaking by docket submittal to the EPA. Section 110(a)(2) words and inclusion of a sentence number and other identifying of the CAA requires that each SIP regarding the editor’s notes at the end of information (subject heading, Federal revision be adopted after reasonable the regulation. Except for the addition of Register date and page number). notice and public hearing. This must the sentence regarding the editor’s 2. Follow directions—The agency may occur prior to the revision being notes, we otherwise note that only ask you to respond to specific questions submitted by a state. typographic changes were performed or organize comments by referencing a For the May 16, 2017 revisions to and no words or terms were added or Code of Federal Regulations (CFR) part Regulation No. 10, the Colorado Air deleted. or section number. Quality Control Commission (AQCC) (b) Section II. ‘‘Definitions.’’ The EPA held a public hearing for those revisions 3. Explain why you agree or disagree; has reviewed and finds acceptable the on February 18, 2016. There were no suggest alternatives and substitute revisions and clarifications that the state public comments. The AQCC adopted language for your requested changes. made to the definition of ‘‘Routine the revisions to Regulation No. 10 4. Describe any assumptions and Conformity Determination.’’ These directly after the hearing. This SIP revisions to Regulation No. 10 were provide any technical information and/ revision became state effective on March or data that you used. designed to streamline the 30, 2016 and was submitted by Dr. Larry transportation conformity process by 5. If you estimate potential costs or allowing the CDPHE to provide burdens, explain how you arrived at 1 A conformity SIP includes a state’s specific concurrence for a wider range of routine your estimate in sufficient detail to criteria and procedures for certain aspects of the allow for it to be reproduced. transportation conformity process consistent with the federal conformity rule. A conformity SIP does 2 ‘‘40 CFR 93 Transportation Conformity Rule 6. Provide specific examples to not contain motor vehicle emissions budgets, PM2.5 and PM10 Amendments; Final Rule,’’ March illustrate your concerns, and suggest emissions inventories, air quality demonstrations, 24, 2010, 75 FR 14260. alternatives. or control measures. See EPA’s Guidance for 3 ‘‘40 CFR 93 Transportation Conformity Rule Developing Transportation Conformity State Restructuring Amendments; Final Rule,’’ March 14, 7. Explain your views as clearly as Implementation Plans (SIPs) for further 2012, 77 FR 14979. possible, avoiding the use of profanity background: https://nepis.epa.gov/Exe/ZyPDF.cgi/ 4 See: http://www.epa.gov/otaq/stateresources/ or personal threats. P1002W5B.PDF?Dockey=P1002W5B.PDF. transconf/policy/420b09001.pdf

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transportation conformity attainment and Reasonable Further • Is not an Executive Order 13771 (82 determinations without the need for a Progress toward attainment of the FR 9339, February 2, 2017) regulatory public hearing before the AQCC. This National Ambient Air Quality Standards action because SIP approvals are change to the routine conformity (NAAQS), or any other applicable exempted under Executive Order 12866; determination definition will reduce the requirement of the CAA. The EPA • Does not impose an information burden on the AQCC, the CDPHE and proposes to determine that the portions collection burden under the provisions transportation MPOs while continuing of Regulation No. 10 that we are acting of the Paperwork Reduction Act (44 to ensure that air quality transportation on are consistent with the applicable U.S.C. 3501 et seq.); requirements of the CAA. Furthermore, conformity requirements are met. In • addition, we note that the changes also these portions do not relax any Is certified as not having a include the provision that previously approved SIP provision; thus significant economic impact on a notwithstanding this general definition, they do not otherwise interfere with substantial number of small entities the CDPHE or the AQCC may, at its attainment and maintenance of the under the Regulatory Flexibility Act (5 discretion, request that any NAAQS. In addition, section 110(l) of U.S.C. 601 et seq.); transportation conformity determination the CAA requires that each revision to • Does not contain any unfunded be reviewed by the AQCC. The EPA an implementation plan submitted by a mandate or significantly or uniquely notes that such a review may also state shall be adopted by the state after affect small governments, as described include a public hearing before the reasonable notice and opportunity for in the Unfunded Mandates Reform Act AQCC. public hearing. On February 18, 2016, of 1995 (Pub. L. 104–4); (c) Typographical corrections were the AQCC held a public hearing and the • Does not have Federalism made to the following sections: Section AQCC adopted the revisions to implications as specified in Executive II, definition of Review Team; Section Regulation No. 10 directly after the Order 13132 (64 FR 43255, August 10, III, subsections III.A.2, III.A.3, III.B.1.a, hearing. This SIP revision became state 1999); III.C.1.b.(2), III.C.1.g and III.F.3. effective on March 30, 2016. Therefore, • (d) Section VI. ‘‘Statements of Basis, the CAA section 110(l) requirements are Is not an economically significant Specific Statutory Authority, and satisfied. regulatory action based on health or Purpose.’’ The EPA notes that the safety risks subject to Executive Order VII. Incorporation by Reference changes to this section VI in the State’s 13045 (62 FR 19885, April 23, 1997); regulation merely provide information In this rule, the EPA is proposing to • Is not a significant regulatory action for the State regarding the SIP revision include in a final EPA rule regulatory subject to Executive Order 13211 (66 FR and are not necessary for an approvable text that includes incorporation by 28355, May 22, 2001); reference. In accordance with Transportation Conformity Consultation • Is not subject to requirements of SIP element whose purpose is to meet requirements of 1 CFR 51.5, the EPA is proposing to incorporate by reference Section 12(d) of the National the requirements of CAA section Technology Transfer and Advancement 176(c)(4)(E) and 40 CFR 51.390. the approval of portions of Regulation No. 10 as submitted by the State of Act of 1995 (15 U.S.C. 272 note) because Therefore, the EPA is not taking any application of those requirements would action on this section. Colorado and as discussed above in section IV of this preamble. The EPA be inconsistent with the Clean Air Act; V. Summary of the EPA’s Proposed has made, and will continue to make, and Action these materials generally available • Does not provide EPA with the For the reasons discussed in section through www.regulations.gov and at the discretionary authority to address, as IV above, and under CAA section EPA Region 8 Office (please contact the appropriate, disproportionate human 110(k)(3), the EPA is proposing to person identified in the FOR FURTHER health or environmental effects, using approve the Regulation No. 10 revisions INFORMATION CONTACT section of this practicable and legally permissible to Section II to the definition of preamble for more information). methods, under Executive Order 12898 ‘‘Routine Conformity Determination.’’ In (59 FR 7629, February 16, 1994). VIII. Statutory and Executive Order addition, we are proposing approval of Reviews In addition, the SIP is not approved the typographic corrections to the to apply on any Indian reservation land Regulation No. 10 title, to Section II and Under the Clean Air Act, the or in any other area where EPA or an to the Section III subsections III.A.2, Administrator is required to approve a Indian tribe has demonstrated that a III.A.3, III.B.1.a, III.C.1.b.(2), III.C.1.g SIP submission that complies with the tribe has jurisdiction. In those areas of and III.F.3. provisions of the Act and applicable Indian country, the rule does not have The EPA notes that revisions were Federal regulations. 42 U.S.C. 7410(k); tribal implications and will not impose also made to Colorado’s Regulation No. 40 CFR 52.02(a). Thus, in reviewing SIP substantial direct costs on tribal 10, section VI ‘‘Statements of Basis, submissions, the EPA’s role is to governments or preempt tribal law as Specific Statutory Authority, and approve state choices, provided that specified by Executive Order 13175 (65 Purpose’’; however, the EPA is not they meet the criteria of the Clean Air FR 67249, November 9, 2000). taking any action on the revisions to this Act. Accordingly, this action merely section. The revisions to section VI are approves state law as meeting Federal List of Subjects in 40 CFR Part 52 only informational in nature for the requirements and does not impose Environmental protection, Air State and do not require federal additional requirements beyond those pollution control, Carbon monoxide, approval into the SIP. imposed by state law. For that reason, this proposed action: Incorporation by reference, VI. Consideration of Section 110(1) of • Is not a significant regulatory action Intergovernmental relations, Nitrogen the Clean Air Act subject to review by the Office of dioxide, Ozone, Particulate matter, Under section 110(l) of the CAA, the Management and Budget under Reporting and recordkeeping EPA cannot approve a SIP revision if the Executive Orders 12866 (58 FR 51735, requirements, and Volatile Organic revision would interfere with any October 4, 1993) and 13563 (76 FR 3821, Compounds. applicable requirements concerning January 21, 2011); Authority: 42 U.S.C. 7401 et seq.

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Dated: January 24, 2018. other file sharing system). For The EPA has addressed the interstate Debra H. Thomas, additional submission methods, please transport requirements of CAA section Acting Regional Administrator, Region 8. contact Sherry Fuerst, 214–665–6454, 110(a)(2)(D)(i)(I) with respect to PM2.5 in [FR Doc. 2018–01853 Filed 1–31–18; 8:45 am] [email protected]. For the full EPA several past regulatory actions. In 2011, BILLING CODE 6560–50–P public comment policy, information we promulgated the Cross-State Air about CBI or multimedia submissions, Pollution Rule (CSAPR, 76 FR 48208, and general guidance on making August 8, 2011) in order to address the ENVIRONMENTAL PROTECTION effective comments, please visit http:// obligations of states—and of the EPA AGENCY www2.epa.gov/dockets/commenting- when states have not met their epa-dockets. obligations—under CAA section 40 CFR Part 52 Docket: The index to the docket for 110(a)(2)(D)(i)(I) to prohibit air pollution [EPA–R06–OAR–2015–0851; FRL–9973–16– this action is available electronically at contributing significantly to Region 6] www.regulations.gov and in hard copy nonattainment in, or interfering with at the EPA Region 6, 1445 Ross Avenue, maintenance by, any other state with Approval and Promulgation of Suite 700, Dallas, Texas. While all regard to several NAAQS, including the Implementation Plans; Louisiana; documents in the docket are listed in 1997 annual and 2006 24-hour PM2.5 Interstate Transport Requirements for the index, some information may be NAAQS.1 In that rule, we considered the 2012 PM2.5 NAAQS publicly available only at the hard copy states linked to downwind receptors if they were projected to contribute more AGENCY: Environmental Protection location (e.g., copyrighted material), and Agency (EPA). some may not be publicly available at than the threshold amount (1% of the either location (e.g., CBI). standard) of PM2.5 pollution for the 1997 ACTION: Proposed rule. FOR FURTHER INFORMATION CONTACT: and 2006 PM2.5 NAAQS (76 FR 48208, SUMMARY: Pursuant to the Federal Clean Sherry Fuerst, 214–665–6454, 48239–43). The EPA has not established Air Act (CAA or Act), the [email protected]. To inspect the a threshold amount for the 2012 PM2.5 Environmental Protection Agency (EPA) hard copy materials, please schedule an NAAQS. In 2016 we provided an is proposing to approve portions of the appointment with Ms. Fuerst or Mr. Bill informational memorandum (the memo) Louisiana State Implementation Plan Deese at 214–665–7253. about the steps states should follow as (SIP) submittal and a technical they develop and review SIPs that supplement addressing the CAA SUPPLEMENTARY INFORMATION: address this provision of the CAA for Throughout this document wherever 2 requirement that SIPs address the the 2012 PM2.5 NAAQS. ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean potential for interstate transport of air B. Louisiana SIP Submittal Pertaining to pollution to significantly contribute to the EPA. the 2012 PM2.5 NAAQS and Interstate nonattainment or interfere with I. Background Transport of Air Pollution maintenance of the 2012 fine particulate A. The PM2.5 NAAQS and Interstate matter (PM2.5) National Ambient Air On December 11, 2015, Louisiana Quality Standards (NAAQS) in other Transport of Air Pollution submitted a SIP revision to address the states. EPA is proposing to determine Under section 109 of the CAA, we requirements of CAA section 110(a)(1) that emissions from Louisiana sources establish NAAQS to protect human and (2) including a section to address do not contribute significantly to health and public welfare. In 2012, we the requirements of CAA section nonattainment in, or interfere with established a new annual NAAQS for 110(a)(2)(D)(i)(I) for the 2012 PM2.5 NAAQS. The submittal stated that the maintenance by, any other state with PM2.5 of 12 micrograms per cubic meter regard to the 2012 PM2.5 NAAQS. (mg/m3), (78 FR 3085, January 15, 2013). State had adequate provisions to DATES: Written comments must be The CAA requires states to submit, prohibit air pollutant emissions from received on or before March 5, 2018. within three years after promulgation of within the State that significantly ADDRESSES: Submit your comments, a new or revised standard, SIPs meeting contribute to nonattainment or interfere identified by Docket Number EPA–R06– the applicable ‘‘infrastructure’’ elements with maintenance of the 2012 PM2.5 OAR–2015–0851, at http:// of sections 110(a)(1) and (2). One of NAAQS stating, ‘‘Air quality modeling www.regulations.gov or via email to these applicable infrastructure elements, evaluating interstate transport for the [email protected]. Follow the CAA section 110(a)(2)(D)(i), requires 2006 PM2.5 supported the conclusion online instructions for submitting SIPs to contain provisions to prohibit that Louisiana did not impact on either comments. Once submitted, comments certain adverse air quality effects on downwind nonattainment or cannot be edited or removed from neighboring states due to interstate maintenance receptors. The air quality Regulations.gov. The EPA may publish transport of pollution. There are four modeling performed for the Transport any comment received to its public sub-elements within CAA section Rule found that the impact was less docket. Do not submit electronically any 110(a)(2)(D)(i). This action reviews how than the 1 percent threshold (79 FR information you consider to be the first two sub-elements, contained in 4436, January 28, 2014). Currently Confidential Business Information (CBI) CAA section 110(a)(2)(D)(i)(I), were Louisiana is in compliance with the or other information whose disclosure is addressed in an infrastructure SIP new standard.’’ On July 7, 2017, the restricted by statute. Multimedia submission from Louisiana for the 2012 State submitted a letter to EPA serving submissions (audio, video, etc.) must be PM2.5 NAAQS. These sub-elements accompanied by a written comment. require that each SIP for a new or 1 Federal Implementation Plans; Interstate Transport of Fine Particulate Matter and Ozone and The written comment is considered the revised NAAQS contain adequate Correction of SIP Approvals, 76 FR 48207 (August official comment and should include provisions to prohibit any source or 8, 2011) (codified as amended at 40 CFR 52.38 and discussion of all points you wish to other type of emissions activity in one 52.39 and 40 CFR part 97). make. The EPA will generally not state that will ‘‘contribute significantly 2 Information on the Interstate Transport ‘‘Good Neighbor’’ Provision for the 2012 Fine Particulate consider comments or comment to nonattainment’’ or ‘‘interfere with Matter National Ambient Air Quality Standards contents located outside of the primary maintenance’’ of the applicable air under Clean Air Act Section 110(a)(2)(D)(i)(I) March submission (i.e. on the web, cloud, or quality standard in any other state. 17, 2016 from Stephen D. Page.

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as a technical supplement for the 2012 to non-attainment or interfere with can be found throughout the document, PM2.5 NAAQS. The letter stated that maintenance downwind, reducing the more information is available in the ‘‘(b)ecause more recent and improved identified upwind emissions through TSD and the documents can be found in air quality modeling data evaluated adoption of permanent and enforceable the docket for this action. transport for the 2012 PM2.5 NAAQS measures. California conducted by EPA for the Cross State Based on this approach, the potential Air Pollution Rule is now available and receptors are outlined in Table 1 in the As described in our TSD, our analysis supports the conclusion that emissions memo. Most of the potential receptors shows that Louisiana’s PM2.5 emissions in Louisiana do not significantly are in California, located in the San and/or PM2.5 precursors do not contribute to nonattainment or interfere Joaquin Valley or South Coast significantly impact the California with maintenance of the 2012 PM2.5 nonattainment areas. However, there is potential receptors identified in the NAAQS in any other state, we submit it also one potential receptor in Shoshone memo. In our analysis we found as basis for our conclusions in lieu of County, Idaho, and one potential specifically that the majority of the the previous technical information receptor in Allegheny County, emissions impacting PM2.5 levels in provided’’. Pennsylvania. California are directly emitted PM2.5 We propose to approve the December The memo did note that because of and/or PM2.5 precursors from within the 11, 2015 submittal and the July 7, 2017 data quality problems nonattainment state, and that meteorological and technical supplement submittal that and maintenance projections were not topographic conditions serve as barriers intended to demonstrate that the SIP done for all or portions of Florida, to transport from Louisiana. We note met the requirements of CAA section Illinois, Idaho, Tennessee and that air quality designations are not 110(a)(2)(D)(i)(I) for the 2012 PM2.5 Kentucky. After issuance of the memo, relevant to our evaluation of interstate NAAQS. data quality problems were resolved for transport, however, the analysis Idaho, Tennessee, Kentucky and developed for the 2012 annual PM2.5 II. The EPA’s Evaluation portions of Florida, identifying no NAAQS designations process provides As stated above, Section additional potential receptors, with an in depth evaluation of factors critical 110(a)(2)(D)(i) requires SIPS to include those areas having design values (DV) in evaluating transport of PM2.5 and adequate provisions prohibiting any below the 2012 PM2.5 NAAQS and PM2.5 precursors, including evaluation source or other type of emissions expected to maintain the NAAQS due to of local emissions, wind speed and activity in one state that will (I) downward emission trends for NOX and direction, topographical and contribute significantly to SO2 (www.epa.gov/air-trends/air- meteorological conditions and seasonal nonattainment, or interfere with quality-design-values and www.epa.gov/ variations recorded at the monitors, maintenance of the NAAAQS in another air-emissions-inventories/air-pollutant- which all support the conclusion that state, and (II) interfering with measures emissions-trends-data). As of December, Louisiana’s PM2.5 and PM2.5 precursors required to prevent significant 2017, the areas that still have data do not significantly contribute to deterioration of air quality, or to protect quality issues preventing projections of nonattainment or interfere with visibility in another state. This action nonattainment and maintenance maintenance of the California potential addresses only CAA section receptors are all of Illinois and four receptors. Furthermore, Louisiana is 110(a)(2)(D)(i)(I). counties in Florida. For this evaluation more than 1,300 miles to the east and EPA issued an information memo on these areas will be considered potential generally downwind of the California 3 March 17, 2016, titled, ‘‘Information on receptors for the 2012 PM2.5 NAAQS. receptors. the Interstate Transport ‘‘Good Therefore, for ‘‘Step 1’’ of this For these reasons, we propose to find Neighbor’’ Provision for the 2012 Fine evaluation, the areas identified as that Louisiana does not significantly Particulate Matter National Ambient Air ‘‘potential downwind nonattainment contribute to nonattainment, nor will it Quality Standards under Clean Air Act and maintenance receptors’’ are: interfere with maintenance of the 2012 Section 110(a)(2)(D)(i)(I)’’ (the memo). • Seventeen potential receptors in PM2.5 NAAQS for California. We will be following the framework California, located in the San Joaquin Shoshone County, Idaho outlined in the memo. Valley or South Coast nonattainment The memo outlined the four step areas; As discussed in the TSD, our analysis framework EPA has historically used to • Shoshone County, Idaho; shows that Louisiana’s PM2.5 emissions evaluate interstate transport under • Allegheny County, Pennsylvania; and/or PM2.5 precursors do not section 110(a)(2)(D)(i)(I), including the • Miami-Dade, Gilchrist, Broward, significantly impact the Idaho potential EPA’s CSAPR. and Alachua Counties in Florida; and, receptor identified in the memo. In our (1) Identification of potential • All of Illinois analysis, we found specifically that the downwind nonattainment and As stated above, ‘‘Step 2’’ is the majority of the emissions impacting maintenance receptors; identification of states contributing to PM2.5 levels, came during the winter (2) Identification of upwind states downwind nonattainment and time and could be attributed to contributing to downwind maintenance receptors, such that further residential wood combustion. We note nonattainment and maintenance analysis is required to identify that air quality designations are not receptors; necessary upwind reductions. For this relevant to our evaluation of interstate (3) For states identified as step, we will be specifically determining transport; however, the analysis contributing to downwind air quality if Louisiana emissions contribute to developed for the 2012 annual PM2.5 problem, identification of upwind downwind nonattainment and NAAQS designations process provide emissions reductions necessary to maintenance receptors. prevent upwind states from significantly Each of the potential receptors is 3 California: Imperial County, Los Angeles-South contributing to nonattainment or discussed below, with a more in depth Coast Air Basin, Plumas County, San Joaquin Valley interfering with maintenance of discussion provided in the Technical Area Designations for the 2012 Primary Annual PM2.5 National Ambient Air Quality Standard receptors, and; Support Document (TSD) for this notice. Technical Support Document https:// (4) For states that are found to have For additional information, links to the www.regulations.gov/document?D=EPA-HQ-OAR- emissions that significantly contribute documents relied upon for this analysis 2012-0918-0330.

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an in depth evaluation of factors critical Another compelling fact is that in Additionally, Louisiana is located 650 in evaluating transport of PM2.5 and previous modeling, nonattainment in miles from Gilchrist County (the most PM2.5 precursors, including evaluation Allegheny County, Pennsylvania was western of the unclassifiable Florida of local emissions, wind speed and linked to significant contributions from counties) and is unlikely to impact air direction, topographical and other states.5 Louisiana was analyzed in quality in Florida. meteorological conditions and seasonal this modeling, and Louisiana emissions For these reasons, we propose to find variations recorded at the monitor, was not linked to Allegheny County. that Louisiana does not significantly which all support the conclusion that For these reasons, we propose to find contribute to nonattainment, nor will it Louisiana PM and PM precursors do that Louisiana does not significantly 2.5 2.5 interfere with maintenance of the 2012 not significantly contribute to contribute to nonattainment, nor will it nonattainment nor interfere with interfere with maintenance of the 2012 PM2.5 NAAQS for any of the four Florida counties. maintenance of the Idaho potential PM2.5 NAAQS for Allegany County, receptor.4 Furthermore, Louisiana is Pennsylvania. Illinois more than 1,100 miles to the southeast Miami/Dade, Gilchrist, Broward, As with the counties in Florida, due and downwind of this receptor. Alachua Counties, Florida For these reasons, we propose to find to ambient monitoring data gaps in the that Louisiana does not significantly As discussed in more detail in the 2009–2013 data that should have been contribute to nonattainment, nor will it TSD, Florida did not have any potential used to identify potential PM2.5 interfere with maintenance of the 2012 nonattainment or maintenance receptors nonattainment and maintenance PM2.5 NAAQS for Shoshone, Idaho. identified for the 1997 or 2006 PM2.5 receptors in Illinois and the modeling NAAQS. At this time, it is anticipated Allegheny County, Pennsylvania analysis of potential receptors could not that this trend will continue under the be completed for the state, therefore As discussed in the TSD, our analysis 2012 standard, however, as there are entire state is considered unclassifiable. shows that Louisiana’s PM2.5 emissions ambient monitoring data gaps in the Unlike Florida, Illinois did have a and/or PM2.5 precursors do not 2009–2013 data that could have been nonattainment receptor identified significantly impact the Allegheny used to identify potential PM2.5 through the CSAPR modeling analysis County, Pennsylvania (Liberty monitor) nonattainment and maintenance for the 1997 PM2.5 NAAQS. The receptor potential receptor identified in the receptors for Miami/Dade, Gilchrist, was in Madison, Illinois, located near memo. In our analysis we found that Broward and Alachua counties in St. Louis, Missouri. there were strong local influences Florida, the modeling analysis of throughout Allegheny County and potential receptors was not complete for As stated above, Louisiana was contributions from nearby states that these counties. In addition, the most included in the CSAPR modeling contributed to its nonattainment for recent ambient data (2014–2016) is still analysis for the 1997 PM2.5 NAAQS. The both the 1997 and 2006 PM2.5 NAAQS. incomplete and therefore these areas are modeling did not show a linkage for Contributors to the Liberty monitor in currently considered unclassifiable, so nonattainment or maintenance between Allegheny County, Pennsylvania in we are evaluating potential of linkages Louisiana and Illinois. Recent DV for recent years, have taken steps to between Florida and Louisiana. the monitors in Madison, Illinois have improve air quality which will likely Both Louisiana and Florida were shown downward trends. There are bring the monitor into compliance with analyzed in the CSAPR modeling and three active monitors in Madison. The the 2012 PM2.5 annual NAAQS by the there were no linkages shown at any DVs for the monitors are shown in Table 2021 attainment date. monitor between these two state. 1 below.

TABLE 1—ANNUAL STANDARD DESIGN VALUES (μg/m3) FOR MADISON, ILLINOIS MONITORS

Monitor No. 2012–2014 2013–2015 2014–2016

171191007 ...... 12.9 11.6 10.8 171192009 ...... 10.4 9.7 9.4 171193007 ...... 12.5 10.8 10.1

For these reasons, we propose that March 17, 2016 informational memo, an III. Proposed Action Louisiana will not significantly evaluation identifying likely emission contribute to nonattainment, nor will it sources affecting these potential EPA is proposing to approve the interfere with maintenance of the 2012 receptors, and the 2014 base case December 11, 2015 SIP revision as supplemented on July 7, 2015 as part of PM2.5 NAAQS in Illinois. modeling in CSAPR final rule, we the SIP for Louisiana pursuant to the Since we determined that Louisiana’s propose to determine that emissions requirements of CAA section SIP includes provisions prohibiting any from Louisiana sources will not 110(a)(2)(D)(i)I as applicable to the 2012 source or other type of emissions contribute significantly to activity from contributing significantly PM2.5 NAAQS. For the reasons nonattainment in, nor interfere with to nonattainment in, or interfering with discussed above and in the TSD, we are maintenance by, any other state with maintenance of the NAAQS, in another proposing to approve the portion of the regard to the 2012 annual PM state, steps 3 and 4 of this evaluation are 2.5 Louisiana SIP submittal as not necessary. NAAQS. supplemented, pertaining to interstate In conclusion, based on our review of transport of air pollution demonstrating the potential receptors presented in the emissions from Louisiana will not

4 Idaho: West Silver Valley Nonattainment Area— Quality Standard Technical Support Document. 5 Air Quality Modeling for 2011 Cross-State Air 2012 Primary Annual PM2.5 National Ambient Air Prepared by EPA Region 10. Pollution Rule (CSAPR) (76 FR 48207, August 8, 2011).

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significantly contribute to In addition, the SIP is not approved 2017, at 82 FR 48035, will be held nonattainment or interfere with to apply on any Indian reservation land Wednesday, February 21, 2018, in maintenance of the 2012 PM2.5 NAAQS or in any other area where EPA or an Kansas City, Missouri; the second in any other state. Indian tribe has demonstrated that a session will be held Wednesday, tribe has jurisdiction. In those areas of February 28, 2018, in San Francisco, IV. Statutory and Executive Order Indian country, the proposed rule does California; and the third session will be Reviews not have tribal implications and will not held Tuesday, March 27, 2018, in Under the CAA, the Administrator is impose substantial direct costs on tribal Gillette, Wyoming. The EPA is required to approve a SIP submission governments or preempt tribal law as reopening the public comment period that complies with the provisions of the specified by Executive Order 13175 (65 until April 26, 2018. Act and applicable Federal regulations. FR 67249, November 9, 2000). ADDRESSES: The first listening session 42 U.S.C. 7410(k); 40 CFR 52.02(a). List of Subjects in 40 CFR Part 52 will be held Wednesday, February 21, Thus, in reviewing SIP submissions, the 2018, at the U.S. Department of EPA’s role is to approve state choices, Environmental protection, Air Agriculture Beacon Complex, 6501 provided that they meet the criteria of pollution control, Incorporation by Beacon Drive, Kansas City, Missouri the CAA. Accordingly, this action reference, Particulate matter. 64133, from 10 a.m. until 8 p.m., Central merely proposes to approve state law as Authority: 42 U.S.C. 7401 et seq. Standard Time (CST). Because this meeting Federal requirements and does Dated: January 24, 2018. listening session is being held at a U.S. not impose additional requirements government facility, individuals beyond those imposed by state law. For Anne Idsal, Regional Administrator, Region 6. planning to attend should be prepared that reason, this action: to show a current, valid state- or federal- • [FR Doc. 2018–01955 Filed 1–31–18; 8:45 am] Is not a ‘‘significant regulatory approved picture identification to the BILLING CODE 6560–50–P action’’ subject to review by the Office security staff in order to gain access to of Management and Budget under the meeting room. An expired form of Executive Orders 12866 (58 FR 51735, identification will not be permitted. October 4, 1993) and 13563 (76 FR 3821, ENVIRONMENTAL PROTECTION AGENCY Please note that the Real ID Act, passed January 21, 2011); by Congress in 2005, established new • Is not an Executive Order 13771 (82 40 CFR Part 60 requirements for entering federal FR 9339, February 2, 2017) regulatory facilities. If your driver’s license is action because SIP approvals are [EPA–HQ–OAR–2017–0355; FRL–9973–28– issued by a noncompliant state, you exempted under Executive Order 12866; OAR] • must present an additional form of Does not impose an information RIN 2060–AT55 collection burden under the provisions identification to enter the federal of the Paperwork Reduction Act (44 building in Kansas City where the Repeal of Carbon Pollution Emission listening session will be held. U.S.C. 3501 et seq.); Guidelines for Existing Stationary • Is certified as not having a Acceptable alternative forms of Sources: Electric Utility Generating identification include: Federal significant economic impact on a Units substantial number of small entities employee badges, passports, enhanced under the Regulatory Flexibility Act (5 AGENCY: Environmental Protection driver’s licenses, and military U.S.C. 601 et seq.); Agency (EPA). identification cards. • Does not contain any unfunded ACTION: Notice of three public listening Additional information on the Real ID mandate or significantly or uniquely sessions and that the public comment Act is available at https://www.dhs.gov/ affect small governments, as described period will be reopened. real-id-frequently-asked-questions. In in the Unfunded Mandates Reform Act addition, you will need to obtain a SUMMARY: of 1995 (Pub. L. 104–4); On October 16, 2017, the visitor pass for any personal belongings • Does not have Federalism Environmental Protection Agency (EPA) you bring with you. No backpacks will implications as specified in Executive published a proposal to announce its be allowed into the building, but purses Order 13132 (64 FR 43255, August 10, intention to repeal the Carbon Pollution will be allowed. 1999); Emission Guidelines for Existing Also, vehicles should only enter the • Is not an economically significant Stationary Sources: Electric Utility West ‘‘C’’ Gate, identified with orange regulatory action based on health or Generating Units, commonly referred to traffic cones and all vehicles must park safety risks subject to Executive Order as the Clean Power Plan, as promulgated in a designated area. Demonstrations 13045 (62 FR 19885, April 23, 1997); on October 23, 2015. The proposal also will not be allowed on federal property • Is not a significant regulatory action requested public comment on the for security reasons. The second subject to Executive Order 13211 (66 FR proposed rule. The EPA held public listening session will be held 28355, May 22, 2001); hearings on November 28 and 29, 2017, Wednesday, February 28, 2018, at the • Is not subject to requirements of in Charleston, West Virginia, and San Francisco Main Library, Koret section 12(d) of the National extended the public comment period Auditorium, 30 Grove Street entrance, Technology Transfer and Advancement until January 16, 2018. In response to San Francisco, California 94102, from Act of 1995 (15 U.S.C. 272 note) because numerous requests for additional 8:30 a.m. until 7:30 p.m., Pacific application of those requirements would opportunities for the public to provide Standard Time (PST). And the third be inconsistent with the CAA; and oral testimony on the proposed rule in listening session will be held Tuesday, • Does not provide EPA with the more than one location, the EPA is March 27, 2018, at the Gillette College discretionary authority to address, as announcing that three listening sessions Technical Education Center, 3251 South appropriate, disproportionate human will be held. In addition, the EPA will 4–J Road, Gillette, Wyoming 82718, health or environmental effects, using reopen the public comment period until from 9 a.m. until 8 p.m., Mountain practicable and legally permissible April 26, 2018. Daylight Time (MDT). The EPA will methods, under Executive Order 12898 DATES: The first listening session for the make every effort to accommodate all (59 FR 7629, February 16, 1994). proposed rule published October 16, speakers.

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The EPA’s website for the rulemaking, 27711; telephone number: (919) 541– ENVIRONMENTAL PROTECTION which includes the proposal and 4080; email address: swanson.nicholas@ AGENCY information about the listening sessions, epa.gov. can be found at: https://www.epa.gov/ 40 CFR Part 62 SUPPLEMENTARY INFORMATION: The stationary-sources-air-pollution/electric- proposal for which the EPA is holding [EPA–R03–OAR–2017–0570; FRL–9973–29– utility-generating-units-repealing-clean- the listening sessions was published in Region 3] power-plan-0. Written comments on the the Federal Register on October 16, proposed rule may be submitted to the Approval and Promulgation of Air 2017, and is available at: https:// EPA electronically, by mail, by Quality Implementation Plans; State of www.epa.gov/stationary-sources-air- facsimile, or through hand delivery/ Maryland; Control of Emissions From pollution/electric-utility-generating- courier. Please refer to the proposal (82 Existing Commercial and Industrial units-repealing-clean-power-plan-0 and FR 48035) for the addresses and detailed Solid Waste Incinerator Units also in the docket identified below. The instructions. listening sessions will provide AGENCY: Environmental Protection How to Register: If you would like to interested parties the opportunity to Agency (EPA). present oral testimony at the listening present oral comments regarding the ACTION: sessions, registration will begin on Proposed rule. EPA’s proposed repeal, including data, February 1, 2018. The last day to views, or arguments concerning the SUMMARY: The Environmental Protection register to present oral testimony will be proposal. The EPA may ask clarifying Agency (EPA) is proposing to notify the February 14, 2018, for Kansas City; questions during the oral presentations, public that it has received a negative February 21, 2018, for San Francisco; but will not respond to the declaration for commercial and and March 20, 2018, for Gillette. To presentations at that time. Written industrial solid waste incineration register to speak, please use the online statements and supporting information (CISWI) units within the State of registration form available at: https:// submitted during the public comment Maryland. This negative declaration www.epa.gov/stationary-sources-air- period will be considered with the same certifies that CISWI units subject to the pollution/electric-utility-generating- weight as any oral comments and requirements of sections 111(d) and 129 units-repealing-clean-power-plan-0. To supporting information presented at the of the Clean Air Act (CAA) do not exist register to speak, we request the listening sessions. The EPA will keep within the jurisdictional boundaries of following information: The time you the public comment period open until the State of Maryland. EPA is accepting wish to speak, name, affiliation, email April 26, 2018. the negative declaration in accordance address, and telephone number. If you with the requirements of the CAA. register to speak online, you do not need For planning purposes, each speaker DATES: Written comments must be to call. If you require reasonable should anticipate speaking for no more received on or before March 5, 2018. than 5 minutes, although we might need accommodations, such as the service of ADDRESSES: Submit your comments, a translator, please let us know at the to shorten that time if there is a large identified by Docket ID No. EPA–R03– time of registration. Please note that turnout. The EPA encourages OAR–2017–0570 at http:// updates made to any aspect of the commenters to submit to the docket a www.regulations.gov, or via email to sessions will be posted online at: copy of their testimony electronically [email protected]. For comments https://www.epa.gov/stationary-sources- (via email or CD) or in hard copy form. submitted at Regulations.gov, follow the air-pollution/electric-utility-generating- The listening session schedules, online instructions for submitting units-repealing-clean-power-plan-0. including lists of speakers, will be comments. Once submitted, comments While the EPA expects the listening posted on the EPA’s website at: https:// cannot be edited or removed from sessions to go forward as set forth above, www.epa.gov/stationary-sources-air- Regulations.gov. For either manner of it asks that you monitor its website or pollution/electric-utility-generating- submission, the EPA may publish any contact the appropriate person listed units-repealing-clean-power-plan-0. comment received to its public docket. below to determine if there are any Verbatim transcripts of the sessions and Do not submit electronically any updates to the information on the written statements will be included in information you consider to be sessions. The EPA does not intend to the docket for the rulemaking. The EPA confidential business information (CBI) publish a notice in the Federal Register will make every effort to follow the or other information whose disclosure is announcing any such updates. schedule as closely as possible on the restricted by statute. Multimedia FOR FURTHER INFORMATION CONTACT: If day of the sessions; however, please submissions (audio, video, etc.) must be you are not able to register online or if plan for the sessions to run either ahead accompanied by a written comment. you have key questions, contact Amy of schedule or behind schedule. The written comment is considered the Bhesania at (913) 551–7147 or at official comment and should include How can I get copies of this document [email protected] for the session discussion of all points you wish to and other related information? in Kansas City; Trina Martynowicz at make. EPA will generally not consider (415) 947–8715 or at [email protected] for The EPA has established a docket for comments or comment contents located the session in San Francisco; or Laura the proposed rule, ‘‘Repeal of Carbon outside of the primary submission (i.e. J. Farris at (303) 312–6388 or at Pollution Emission Guidelines for on the web, cloud, or other file sharing [email protected] for the session in Existing Stationary Sources: Electric system). For additional submission Gillette. Utility Generating Units,’’ under Docket methods, please contact the person Questions concerning the proposed ID No. EPA–HQ–OAR–2017–0355, identified in the FOR FURTHER rule that was published in the Federal available at: http://www.regulations.gov. INFORMATION CONTACT section. For the Register on October 16, 2017, should be full EPA public comment policy, addressed to Mr. Nick Swanson, Natural Dated: January 17, 2018. information about CBI or multimedia Resources Group, Sector Policies and E. Scott Pruitt, submissions, and general guidance on Programs Division (E143–03), U.S. Administrator. making effective comments, please visit Environmental Protection Agency, [FR Doc. 2018–01321 Filed 1–31–18; 8:45 am] http://www2.epa.gov/dockets/ Research Triangle Park, North Carolina BILLING CODE 6560–50–P commenting-epa-dockets.

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FOR FURTHER INFORMATION CONTACT: combusts, or has combusted in the • Is not a ‘‘significant regulatory Mike Gordon, (215) 814–2039, or by preceding six months, any solid waste, action’’ subject to review by the Office email at [email protected]. as that term is defined in 40 CFR part of Management and Budget under SUPPLEMENTARY INFORMATION: 241, Solid Wastes Used as Fuels or Executive Order 12866 (58 FR 51735, Ingredients in Combustion Units. 40 October 4, 1993); I. Background CFR 60.2875. A state plan must address • Does not impose an information Sections 111(d) and 129 of the CAA all existing CISWI units that collection burden under the provisions require submittal of state plans to commenced construction on or before of the Paperwork Reduction Act (44 control certain pollutants (designated June 4, 2010, or for which modification U.S.C. 3501 et seq.); pollutants) at existing solid waste or reconstruction was commenced on or • Is certified as not having a combustor facilities (designated before August 7, 2013, with limited significant economic impact on a facilities) whenever standards of exceptions as provided in paragraph 40 substantial number of small entities performance have been established by CFR 60.2555. 40 CFR 60.2550. under the Regulatory Flexibility Act (5 EPA under section 111(b) for new As discussed above, however, if there U.S.C. 601 et seq.); • sources of the same source category and are no designated facilities in the state, Does not contain any unfunded the EPA has established emission the state may submit a negative mandate or significantly or uniquely guidelines for such existing sources. declaration in lieu of a state plan. The affect small governments, as described When designated facilities are located in EPA will provide public notice of in the Unfunded Mandates Reform Act a state, the state must then develop and receipt of a state’s negative declaration of 1995 (Pub. L. 104–4); • submit a plan for the control of the with respect to CISWI. 40 CFR 60.2530. Does not have Federalism designated pollutant. Subpart B of 40 If any subsequently identified existing implications as specified in Executive CFR part 60 establishes procedures to be CISWI unit is found in a state that had Order 13132 (64 FR 43255, August 10, followed and requirements to be met in 1999); submitted a negative declaration, the • the development and submission of Federal plan implementing the emission Is not an economically significant state plans for controlling designated guidelines for subpart DDDD would regulatory action based on health or pollutants from designated facilities automatically apply to that CISWI unit safety risks subject to Executive Order under sections 111(d) and 129 of the 13045 (62 FR 19885, April 23, 1997); until a state plan is approved. 40 CFR • CAA. Also, Subpart A of 40 CFR part 62 60.2530. Is not a significant regulatory action provides the procedural framework for subject to Executive Order 13211 (66 FR the submission of these plans. III. State Submittals and EPA Analysis 28355, May 22, 2001); If a state fails to submit a satisfactory • Is not subject to requirements of plan, the CAA provides the EPA the The State of Maryland, through the MDE, has determined that there are no Section 12(d) of the National authority to prescribe a plan for Technology Transfer and Advancement regulating the designated pollutants at CISWI units subject to CAA 111(d)/129 requirements in its respective air Act of 1995 (15 U.S.C. 272 note) because the designated facilities. The EPA application of those requirements would prescribed plan, also known as a federal pollution control jurisdiction. Accordingly, the MDE submitted a be inconsistent with the CAA; and plan, is often delegated to states with • Does not provide EPA with the negative declaration letter to EPA designated facilities but no EPA discretionary authority to address, as certifying this fact on January 20, 2017. approved state-specific plan. If no such appropriate, disproportionate human The negative declaration letter is designated facilities exist within a health or environmental effects, using available in the docket for this state’s jurisdiction, a state may submit practicable and legally permissible rulemaking and available online at to the EPA a letter of certification to that methods, under Executive Order 12898 www.regulations.gov. effect (referred to as a negative (59 FR 7629, February 16, 1994). declaration) in lieu of a state plan to IV. Proposed Action In addition, this proposed rule for satisfy the state’s obligation. 40 CFR existing CISWI units within the State of EPA’s review of this material 60.23(b) and 62.06. A negative Maryland does not have tribal indicates that MDE has fulfilled its declaration exempts the state from the implications as specified by Executive obligation under CAA Sections 129 and requirement to submit a CAA section Order 13175 (65 FR 67249, November 9, 111(d) for submittal of a negative 111(d)/section 129 plan for that 2000), because the section 111(d)/129 declaration. EPA is proposing to designated pollutant and source plan is not approved to apply in Indian approve the Maryland negative category. 40 CFR 60.23(b). country located in the state, and EPA declaration for CISWI units, which was notes that it will not impose substantial II. Commercial and Industrial Solid submitted on January 20, 2017. EPA is direct costs on tribal governments or Waste Incinerators soliciting public comments on the preempt tribal law. On December 1, 2000 (60 FR 75338), issues discussed in this document. the EPA promulgated new source These comments will be considered List of Subjects in 40 CFR Part 62 performance standards for new CISWI before taking final action. Environmental protection, units, 40 CFR part 60, subpart CCCC, IV. Statutory and Executive Order Administrative practice and procedure, and emission guidelines for existing Reviews Air pollution control, Commercial and CISWI units, 40 CFR part 60, subpart industrial solid waste incineration DDDD. After a series of legal challenges, In reviewing section 111(d)/129 plan units, Incorporation by reference, amendments, and reconsiderations, the submissions, EPA’s role is to approve Intergovernmental relations, Reporting EPA promulgated the Reconsideration state choices, provided that they meet and recordkeeping requirements. and Final Amendments for CISWI units the criteria of the CAA. Accordingly, on February 7, 2013 (78 FR 9112) this action merely approves state law as Dated: January 11, 2018. (providing final standards for new and meeting Federal requirements and does Cosmo Servidio, existing sources). A CISWI unit is any not impose additional requirements Regional Administrator, Region III. distinct operating unit of any beyond those imposed by state law. For [FR Doc. 2018–02059 Filed 1–31–18; 8:45 am] commercial or industrial facility that that reason, this proposed action: BILLING CODE 6560–50–P

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DEPARTMENT OF THE INTERIOR Service, 1011 E. Tudor Road, Mail Stop Pike, Falls Church, VA 22041–3803; 201, Anchorage, AK 99503; (907) 786– (703) 358–1714. Fish and Wildlife Service 3499. Public Availability of Comments SUPPLEMENTARY INFORMATION: 50 CFR Part 92 Public Comment Procedures As stated above in more detail, before [Docket No. FWS–R7–MB–2017–0087; including your address, phone number, FXMB12610700000–189–FF07M01000] To ensure that any action resulting email address, or other personal from this proposed rule will be as RIN 1018–BC70 identifying information in your accurate and as effective as possible, we comment, you should be aware that Migratory Bird Subsistence Harvest in request that you send relevant your entire comment—including your Alaska; Harvest Regulations for information for our consideration. The personal identifying information—may Migratory Birds in Alaska During the comments that will be most useful and be made publicly available at any time. 2018 Season likely to influence our decisions are While you can ask us in your comment those that you support by quantitative to withhold your personal identifying AGENCY: Fish and Wildlife Service, information or studies and those that information from public review, we Interior. include citations to, and analyses of, the cannot guarantee that we will be able to ACTION: Proposed rule. applicable laws and regulations. Please do so. make your comments as specific as SUMMARY: The U.S. Fish and Wildlife possible and explain the basis for them. Length of Comment Period Service (Service or we) is proposing In addition, please include sufficient migratory bird subsistence harvest information with your comments to Implementation of the Service’s 2013 regulations in Alaska for the 2018 allow us to authenticate any scientific or supplemental environmental impact season. These regulations allow for the commercial data you include. statement on the hunting of migratory continuation of customary and You must submit your comments and birds has resulted in changes to the traditional subsistence uses of migratory materials concerning this proposed rule overall timing of the annual regulatory birds in Alaska and prescribe regional by one of the methods listed above in schedule for the establishment of information on when and where the ADDRESSES. We will not accept migratory bird hunting regulations and harvesting of birds may occur. These comments sent by email or fax or to an the Alaska migratory bird subsistence regulations were developed under a co- address not listed in ADDRESSES. If you harvest regulations. That is, moving the management process involving the submit a comment via http:// annual Service Regulations Committee Service, the Alaska Department of Fish www.regulations.gov, your entire meeting from July to October has greatly and Game, and Alaska Native comment—including any personal shortened our period to publish the representatives. The rulemaking is identifying information, such as your proposed regulations and solicit necessary because the regulations address, telephone number, or email comments. We are further bounded by governing the subsistence harvest of address—will be posted on the website. a subsistence harvest start date of April migratory birds in Alaska are subject to When you submit a comment, the 2, 2018, making a 60-day comment annual review. This rulemaking system receives it immediately. period problematic and increasing the proposes region-specific regulations that However, the comment will not be risk of not having regulations would go into effect on April 2, 2018. publicly viewable until we post it, established before the start of the DATES: We will accept comments which might not occur until several subsistence season. Thus, we have received or postmarked on or before days after submission. established a 30-day comment period March 5, 2018. We must receive If you mail or hand-carry a hardcopy for this proposed rule (see DATES, requests for public hearings, in writing, comment directly to us that includes above), and we will be conducting tribal at the address shown in FOR FURTHER personal information, you may request consultations within Alaska INFORMATION CONTACT by February 16, at the top of your document that we simultaneously. We believe a 30-day 2018. withhold this information from public comment period gives the public ADDRESSES: You may submit comments review. However, we cannot guarantee adequate time to provide meaningful by one of the following methods: that we will be able to do so. To ensure comments. In addition, the proposed • Federal eRulemaking Portal: http:// that the electronic docket for this regulations in this document for the www.regulations.gov. Follow the rulemaking is complete and all 2018 season are the same as the final instructions for submitting comments to comments we receive are publicly regulations we published on April 4, Docket No. FWS–R7–MB–2017–0087. available, we will post all hardcopy 2017 (82 FR 16298), for the 2017 season. • U.S. mail or hand-delivery: Public comments on http:// Why is this rulemaking necessary? Comments Processing, Attn: FWS–R7– www.regulations.gov. MB–2017–0087; Division of Policy, In addition, comments and materials This rulemaking is necessary because, Performance, and Management we receive, as well as supporting by law, the migratory bird harvest Programs; U.S. Fish and Wildlife documentation used in preparing this season is closed unless opened by the Service; 5275 Leesburg Place, MS: proposed rule, will be available for Secretary of the Interior, and the BPHC; Falls Church, VA 22041–3803. public inspection in two ways: regulations governing subsistence We will not accept email or faxes. We (1) You can view them on http:// harvest of migratory birds in Alaska are will post all comments on http:// www.regulations.gov. Search for FWS– subject to public review and annual www.regulations.gov. This generally R7–MB–2017–0087, which is the docket approval. This rule proposes regulations means that we will post any personal number for this rulemaking. for the taking of migratory birds for information you provide us (see the (2) You can make an appointment, subsistence uses in Alaska during the Public Comment Procedures section, during normal business hours, to view spring and summer of 2018. This below, for more detailed information). the comments and materials in person at proposed rule also sets forth a list of FOR FURTHER INFORMATION CONTACT: the Division of Migratory Bird migratory bird season openings and Donna Dewhurst, U.S. Fish and Wildlife Management, MS: MB, 5275 Leesburg closures in Alaska by region.

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How do I find the history of these consistent with the criteria set forth at information gathered from regions still regulations? 50 CFR 92.5(c). These communities reporting some subsistence harvest of Background information, including were Gulkana, Gakona, Tazlina, Copper listed or candidate species. Based on our monitoring of the past events leading to this rulemaking, Center, Mentasta Lake, Chitina, migratory bird species and populations accomplishments since the Migratory Chistochina, Tatitlek, Chenega, Port Graham, Nanwalek, Tyonek, and taken for subsistence, we find that this Bird Treaties with Canada and Mexico Hoonah, with a combined population of regulation would provide for the were amended, and a history, were 2,766. In 2005, we added three preservation and maintenance of originally addressed in the Federal additional communities for glaucous- migratory bird stocks as required by the Register on August 16, 2002 (67 FR winged gull egg gathering only in Migratory Bird Treaty Act (Act; 16 53511) and most recently on April 4, response to petitions requesting U.S.C. 703 et seq.). The Act’s 16 U.S.C. 2017 (82 FR 16298). inclusion. These southeastern 712(1) provision states that the Service, Recent Federal Register documents communities were Craig, Hydaburg, and ‘‘is authorized to issue such regulations and all final rules setting forth the Yakutat, with a combined population of as may be necessary to assure that the annual harvest regulations are available 2,459, according to the latest census taking of migratory birds and the at http://www.fws.gov/alaska/ambcc/ information at that time. collection of their eggs, by the regulations.htm or by contacting the In 2007, we enacted the Alaska indigenous inhabitants of the State of person listed under FOR FURTHER Department of Fish and Game’s request Alaska, shall be permitted for their own INFORMATION CONTACT. to expand the Fairbanks North Star nutritional and other essential needs, as What is the process for issuing Borough excluded area to include the determined by the Secretary of the regulations for the subsistence harvest Central Interior area. This action Interior, during seasons established so of migratory birds in Alaska? excluded the following communities as to provide for the preservation and from participation in this harvest: Big maintenance of stocks of migratory The U.S. Fish and Wildlife Service is Delta/Fort Greely, Healy, McKinley birds.’’ Communication and proposing migratory bird subsistence- Park/Village, and Ferry, with a coordination between the Service, the harvest regulations in Alaska for the combined population of 2,812. Co-management Council, and the Pacific 2018 season. These regulations allow for In 2012, we received a request from Flyway Council have allowed us to set the continuation of customary and the Native Village of Eyak to include harvest regulations to ensure the long- traditional subsistence uses of migratory Cordova, Alaska, for a limited season term viability of the migratory bird birds in Alaska and prescribe regional that would legalize the traditional stocks. In addition, Alaska migratory information on when and where the gathering of gull eggs and the hunting of bird subsistence harvest rates have harvesting of birds may occur. These waterfowl during spring. This request continued to decline since the inception regulations were developed under a co- resulted in a new, limited harvest of of the subsistence-harvest program, management process involving the spring waterfowl and gull eggs starting reducing concerns about the program’s Service, the Alaska Department of Fish in 2014. consistency with the preservation and and Game, and Alaska Native maintenance of stocks of migratory Amendments to Subpart C representatives. birds. The Alaska Migratory Bird Co- Under subpart C, General Regulations As for the ensuring the conservation management Council (Co-management Governing Subsistence Harvest, we are of Endangered Species Act (ESA; 16 Council) held meetings on April 5–6, amending § 92.22, the list of birds open U.S.C. 1531 et seq.), listed species, 2017, to develop recommendations for to subsistence harvest, by adding spectacled eiders (Somateria fischeri) changes that would take effect during emperor goose (Chen canagica) and by and the Alaska-breeding population of the 2018 harvest season. The Co- amending cackling goose to allow egg Steller’s eiders (Polysticta stelleri) are management Council recommended no gathering. These changes were listed as threatened species. Their changes for the 2018 regulations. originally made in the 2017 regulations migration and breeding distribution Who is eligible to hunt under these (82 FR 16298; April 4, 2017), but were overlap with areas where the spring and regulations? mistakenly set to expire August 31, summer subsistence migratory bird hunt 2017. We intended these changes to is open in Alaska. Both species are Eligibility to harvest under the subpart C to be permanent; therefore, we closed to hunting, although harvest regulations established in 2003 was are setting them forth again in this surveys and Service documentation limited to permanent residents, proposed rule with the intent to make indicate both species are taken in regardless of race, in villages located them permanent when we publish a several regions of Alaska. We have within the Alaska Peninsula, Kodiak final rule for this action. determined that this proposed rule Archipelago, the Aleutian Islands, and would comply with the ESA (see in areas north and west of the Alaska How would the service ensure that the Endangered Species Act Consideration Range (50 CFR 92.5). These geographical subsistence migratory bird harvest discussion, below). restrictions opened the initial migratory complies with the Migratory Bird The Service has dual objectives and bird subsistence harvest to about 13 Treaty Act, and would not threaten the responsibilities for authorizing a percent of Alaska residents. High- conservation of endangered and subsistence harvest while protecting populated, roaded areas such as threatened species? migratory birds and threatened species. Anchorage, the Matanuska-Susitna and We have monitored subsistence Although these objectives continue to be Fairbanks North Star boroughs, the harvest for the past 25 years through the challenging, they are not irreconcilable, Kenai Peninsula roaded area, the Gulf of use of household surveys in the most provided that: (1) Regulations continue Alaska roaded area, and Southeast heavily used subsistence harvest areas, to protect threatened species, (2) Alaska were excluded from eligible such as the Yukon–Kuskokwim Delta. In measures to address documented threats subsistence harvest areas. recent years, more intensive surveys are implemented, and (3) the In response to petitions requesting combined with outreach efforts focused subsistence community and other inclusion in the harvest in 2004, we on species identification have been conservation partners commit to added 13 additional communities added to improve the accuracy of working together. With these dual

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objectives in mind, the Service, working including partnering with the North with conservation programs for those with North Slope partners, developed Slope Migratory Bird Task Force, for species. measures in 2009 to further reduce the increased waterfowl-hunter awareness, Consultation under section 7 of the potential for shooting mortality or injury continued enforcement of the ESA for the annual subsistence take of closed species. These conservation regulations, and in-season verification regulations may cause us to change measures included: (1) Increased of the harvest. To reduce the threat of these regulations. Our biological waterfowl hunter outreach and shooting mortality of threatened eiders, opinion resulting from the section 7 community awareness through we continue to work with North Slope consultation is a public document partnering with the North Slope partners to conduct education and available from the person listed under Migratory Bird Task Force; and (2) outreach. In addition, the emergency- FOR FURTHER INFORMATION CONTACT. continued enforcement of the migratory closure authority provides another level Statutory Authority bird regulations that are protective of of assurance if an unexpected number of listed eiders. Steller’s eiders are killed by shooting We derive our authority to issue these This proposed rule continues to focus (50 CFR 92.21 and 50 CFR 92.32). regulations from the Migratory Bird on the North Slope from Utqiagvik The longstanding general emergency- Treaty Act of 1918, at 16 U.S.C. 712(1), (formerly known as Barrow) to Point closure provision at 50 CFR 92.21 which authorizes the Secretary of the Hope because Steller’s eiders from the specifies that the harvest may be closed Interior, in accordance with the treaties listed Alaska breeding population are or temporarily suspended upon finding with Canada, Mexico, Japan, and Russia, known to breed and migrate there, and that a continuation of the regulation to ‘‘issue such regulations as may be harvest survey data and direct allowing the harvest would pose an necessary to assure that the taking of observations indicate take during imminent threat to the conservation of migratory birds and the collection of subsistence harvest has occurred there. any migratory bird population. With their eggs, by the indigenous inhabitants These regulations are designed to regard to Steller’s eiders, the regulations of the State of Alaska, shall be permitted address several ongoing eider- at 50 CFR 92.32, carried over from the for their own nutritional and other management needs by clarifying for past 7 years, clarify that we would take essential needs, as determined by the subsistence users that (1) Service law action under 50 CFR 92.21 as is Secretary of the Interior, during seasons enforcement personnel have authority to necessary to prevent further take of established so as to provide for the verify species of birds possessed by Steller’s eiders, and that action could preservation and maintenance of stocks hunters, and (2) it is illegal to possess include temporary or long-term closures of migratory birds.’’ any species of bird closed to harvest. of the harvest in all or a portion of the This proposed rule also describes how Required Determinations geographic area open to harvest. When the Service’s existing authority of and if mortality of threatened eiders is Executive Order 13771—Reducing emergency closure would be documented, we would evaluate each Regulation and Controlling Regulatory implemented, if necessary, to protect Costs Steller’s eiders. We are always willing to mortality event by criteria such as discuss regulations with our partners on cause, quantity, sex, age, location, and This proposed rule is not subject to the North Slope to ensure protection of date. We would consult with the Co- the requirements of Executive Order closed species while providing management Council when we are 13771 (82 FR 9339, February 3, 2017) subsistence hunters an opportunity to considering an emergency closure. If we because this proposed rule would maintain the culture and traditional determine that an emergency closure is establish annual harvest limits related to migratory bird harvest of the necessary, we would design it to routine hunting or fishing. community. These regulations minimize its impact on the subsistence harvest. Regulatory Planning and Review pertaining to bag checks and possession (Executive Orders 12866 and 13563) of illegal birds are deemed necessary to Endangered Species Act Consideration monitor take of closed eider species Executive Order 12866 provides that during the subsistence hunt. Section 7 of the Endangered Species the Office of Information and Regulatory In collaboration with North Slope Act (16 U.S.C. 1536) requires the Affairs (OIRA) will review all significant partners, a number of conservation Secretary of the Interior to ‘‘review other rules. OIRA has determined that this efforts have been implemented to raise programs administered by him (or her) proposed rule is not significant. awareness and educate hunters in and and utilize such programs in Executive Order 13563 reaffirms the around Utqiagvik on Steller’s eider furtherance of the purposes of the Act’’ principles of E.O. 12866 while calling conservation via the local bird outreach and to ‘‘insure that any action for improvements in the nation’s festival, meetings, radio shows, signs, authorized, funded, or carried out * * * regulatory system to promote school visits, and one-on-one contacts. is not likely to jeopardize the continued predictability, to reduce uncertainty, Limited intermittent monitoring on the existence of any endangered species or and to use the best, most innovative, North Slope, focused primarily at threatened species or result in the and least burdensome tools for Utqiagvik, found no evidence that listed destruction or adverse modification of achieving regulatory ends. The eiders were shot in 2009 through 2012; [critical] habitat. * * *’’ Prior to executive order directs agencies to one Steller’s eider and one spectacled issuance of annual spring and summer consider regulatory approaches that eider were found shot during the subsistence regulations, we would reduce burdens and maintain flexibility summer of 2013; one Steller’s eider was consult under section 7 of the and freedom of choice for the public found shot in 2014; and no listed eiders Endangered Species Act of 1973, as where these approaches are relevant, were found shot in 2015 through 2017. amended (ESA; 16 U.S.C. 1531 et seq.), feasible, and consistent with regulatory Elsewhere in Alaska, one spectacled to ensure that the 2018 subsistence objectives. E.O. 13563 emphasizes eider that appeared to have been shot harvest is not likely to jeopardize the further that regulations must be based was found dead on the Yukon- continued existence of any species on the best available science and that Kuskokwim Delta in 2015. The Service designated as endangered or threatened, the rulemaking process must allow for acknowledges progress made with the or modify or destroy its critical habitats, public participation and an open other eider conservation measures, and that the regulations are consistent exchange of ideas. We have developed

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this proposed rule in a manner Unfunded Mandates Reform Act with the State of Alaska to develop consistent with these requirements. We have determined and certified these proposed regulations. Therefore, a federalism summary impact statement is Regulatory Flexibility Act under the Unfunded Mandates Reform Act (2 U.S.C. 1501 et seq.) that this not required. The Department of the Interior proposed rule would not impose a cost Civil Justice Reform (Executive Order certifies that, if adopted, this proposed of $100 million or more in any given 12988) rule would not have a significant year on local, State, or tribal economic impact on a substantial governments or private entities. The The Department, in promulgating this number of small entities as defined proposed rule would not have a proposed rule, has determined that it under the Regulatory Flexibility Act (5 significant or unique effect on State, would not unduly burden the judicial U.S.C. 601 et seq.). A regulatory local, or tribal governments or the system and that it meets the flexibility analysis is not required. private sector. A statement containing requirements of sections 3(a) and 3(b)(2) Accordingly, a Small Entity Compliance the information required by the of Executive Order 12988. Guide is not required. This proposed Unfunded Mandates Reform Act is not Government-to-Government Relations rule would legalize a pre-existing required. Participation on regional With Native American Tribal subsistence activity, and the resources management bodies and the Co- Governments harvested would be consumed. management Council requires travel expenses for some Alaska Native Consistent with Executive Order Small Business Regulatory Enforcement organizations and local governments. In 13175 (65 FR 67249; November 6, 2000), Fairness Act addition, they assume some expenses ‘‘Consultation and Coordination with Indian Tribal Governments,’’ and This proposed rule is not a major rule related to coordinating involvement of village councils in the regulatory Department of Interior policy on under 5 U.S.C. 804(2), the Small Consultation with Indian Tribes Business Regulatory Enforcement process. Total coordination and travel expenses for all Alaska Native (December 1, 2011), we will send letters Fairness Act. This proposed rule: organizations are estimated to be less via electronic mail to all 229 Alaska (a) Would not have an annual effect than $300,000 per year. In a notice of Federally recognized Indian tribes. on the economy of $100 million or decision (65 FR 16405; March 28, 2000), Consistent with Congressional direction more. It legalizes and regulates a we identified 7 to 12 partner (Pub. L. 108–199, div. H, Sec. 161, Jan. traditional subsistence activity. It would organizations (Alaska Native nonprofits 23, 2004, 118 Stat. 452, as amended by not result in a substantial increase in and local governments) to administer Pub. L. 108–447, div. H, title V, Sec. subsistence harvest or a significant the regional programs. The Alaska 518, Dec. 8, 2004, 118 Stat. 3267), we change in harvesting patterns. The Department of Fish and Game also also send letters to approximately 200 commodities that would be regulated incurs expenses for travel to Co- Alaska Native corporations and other under this rule are migratory birds. This management Council and regional tribal entities in Alaska soliciting their proposed rule deals with legalizing the management body meetings. In input as to whether or not they would subsistence harvest of migratory birds addition, the State of Alaska would be like the Service to consult with them on and, as such, does not involve required to provide technical staff the 2018 migratory bird subsistence commodities traded in the marketplace. support to each of the regional harvest regulations. A small economic benefit from this management bodies and to the Co- We implemented the amended treaty proposed rule derives from the sale of management Council. Expenses for the with Canada with a focus on local equipment and ammunition to carry out State’s involvement may exceed involvement. The treaty calls for the subsistence hunting. Most, if not all, $100,000 per year, but should not creation of management bodies to businesses that sell hunting equipment exceed $150,000 per year. When ensure an effective and meaningful role in rural Alaska qualify as small funding permits, we make annual grant for Alaska’s indigenous inhabitants in businesses. We have no reason to agreements available to the partner the conservation of migratory birds. believe that this proposed rule would organizations and the Alaska According to the Letter of Submittal, lead to a disproportionate distribution Department of Fish and Game to help management bodies are to include of benefits. offset their expenses. Alaska Native, Federal, and State of Alaska representatives as equals. They (b) Would not cause a major increase Takings (Executive Order 12630) develop recommendations for, among in costs or prices for consumers; other things: Seasons and bag limits, individual industries; Federal, State, or Under the criteria in Executive Order methods and means of take, law local government agencies; or 12630, this proposed rule would not have significant takings implications. enforcement policies, population and geographic regions. This proposed rule This proposed rule is not specific to harvest monitoring, education programs, does not deal with traded commodities particular land ownership, but applies research and use of traditional and, therefore, would not have an to the harvesting of migratory bird knowledge, and habitat protection. The impact on prices for consumers. resources throughout Alaska. A takings management bodies involve village (c) Would not have significant adverse implication assessment is not required. councils to the maximum extent effects on competition, employment, possible in all aspects of management. investment, productivity, innovation, or Federalism (Executive Order 13132) To ensure maximum input at the village the ability of U.S.-based enterprises to Under the criteria in Executive Order level, we required each of the 11 compete with foreign-based enterprises. 13132, this proposed rule does not have participating regions to create regional This proposed rule deals with the sufficient federalism implications to management bodies consisting of at harvesting of wildlife for personal warrant the preparation of a federalism least one representative from the consumption. It would not regulate the summary impact statement. We discuss participating villages. The regional marketplace in any way to generate effects of this proposed rule on the State management bodies meet twice substantial effects on the economy or of Alaska in the Unfunded Mandates annually to review and/or submit the ability of businesses to compete. Reform Act section, above. We worked proposals to the Statewide body.

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Paperwork Reduction Act of 1995 (PRA) PART 92—MIGRATORY BIRD the actual closure dates will be This proposed rule does not contain SUBSISTENCE HARVEST IN ALASKA forwarded to regional newspapers and any new collections of information that radio and television stations. ■ 1. The authority citation for part 92 (3) Special Black Brant and Cackling require Office of Management and continues to read as follows: Budget (OMB) approval under the PRA Canada Goose Season Hunting Closure: (44 U.S.C. 3501 et seq.). We may not Authority: 16 U.S.C. 703–712. From the period when egg laying begins conduct or sponsor and you are not until young birds are fledged. Closure Subpart C—General Regulations required to respond to a collection of dates to be announced by the Service’s Governing Subsistence Harvest information unless it displays a Alaska Regional Director or his designee, after consultation with field currently valid OMB control number. ■ 2. Amend § 92.22 by: biologists and the Association of Village OMB has reviewed and approved our ■ a. Redesignating paragraph (a)(3) as Council President’s Waterfowl collection of information associated paragraph (a)(4); Conservation Committee. A press with: ■ b. Adding a new paragraph (a)(3); and • Voluntary annual household ■ c. Revising paragraph (a)(6). release announcing the actual closure surveys that we use to determine levels The addition and revision read as dates will be forwarded to regional of subsistence take (OMB Control follows: newspapers and radio and television Number 1018–0124, expires October 31, stations. 2019). § 92.22 Subsistence migratory bird (c) Bristol Bay Region. (1) Season: species. April 2–June 14 and July 16–August 31 • Permits associated with subsistence (general season); April 2–July 15 for hunting (OMB Control Number 1018– * * * * * seabird egg gathering only. 0075, expires June 30, 2019). (a) * * * (3) Emperor goose (Chen canagica). (2) Closure: June 15–July 15 (general • Emperor Goose Spring Subsistence season); July 16–August 31 (seabird egg Harvest Survey (to include number of * * * * * gathering). geese harvested, age, sex, and mass of (6) Canada goose, subspecies cackling birds harvested associated) (OMB goose. (d) Bering Strait/Norton Sound Control Number 1090–0011, expires * * * * * Region. (1) Stebbins/St. Michael Area August 31, 2018). (Point Romanof to Canal Point): Subpart D—Annual Regulations (i) Season: April 15–June 14 and July National Environmental Policy Act Governing Subsistence Harvest 16–August 31. Consideration (42 U.S.C. 4321 et seq.) (ii) Closure: June 15–July 15. ■ 3. Amend subpart D by adding § 92.31 (2) Remainder of the region: The annual regulations and options to read as follows: are considered in an October 2017 (i) Season: April 2–June 14 and July environmental assessment, ‘‘Managing § 92.31 Region-specific regulations. 16–August 31 for waterfowl; April 2– Migratory Bird Subsistence Hunting in The 2018 season dates for the eligible July 19 and August 21–August 31 for all Alaska: Hunting Regulations for the subsistence-harvest areas are as follows: other birds. 2018 Spring/Summer Harvest.’’ Copies (a) Aleutian/Pribilof Islands Region. (ii) Closure: June 15–July 15 for are available from the person listed (1) Northern Unit (Pribilof Islands): waterfowl; July 20–August 20 for all under FOR FURTHER INFORMATION (i) Season: April 2–June 30. other birds. CONTACT or at http:// (ii) Closure: July 1–August 31. (e) Kodiak Archipelago Region, except www.regulations.gov. (2) Central Unit (Aleutian Region’s for the Kodiak Island roaded area, eastern boundary on the Alaska which is closed to the harvesting of Energy Supply, Distribution, or Use Peninsula westward to and including migratory birds and their eggs. The (Executive Order 13211) Unalaska Island): closed area consists of all lands and Executive Order 13211 requires (i) Season: April 2–June 15 and July waters (including exposed tidelands) agencies to prepare Statements of 16–August 31. east of a line extending from Crag Point Energy Effects when undertaking certain (ii) Closure: June 16–July 15. in the north to the west end of Saltery actions. This is not a significant (iii) Special Black Brant Season Cove in the south and all lands and regulatory action under this Executive Closure: August 16–August 31, only in water south of a line extending from Order; it allows only for traditional Izembek and Moffet lagoons. Termination Point along the north side subsistence harvest and improves (iv) Special Tundra Swan Closure: All of Cascade Lake extending to Anton conservation of migratory birds by hunting and egg gathering closed in Larsen Bay. Marine waters adjacent to allowing effective regulation of this Game Management Units 9(D) and 10. the closed area are closed to harvest harvest. Further, this proposed rule is (3) Western Unit (Umnak Island west within 500 feet from the water’s edge. not expected to significantly affect to and including Attu Island): The offshore islands are open to harvest. energy supplies, distribution, or use. (i) Season: April 2–July 15 and (1) Season: April 2–June 30 and July Therefore, this action is not a significant August 16–August 31. 31–August 31 for seabirds; April 2–June energy action under Executive Order (ii) Closure: July 16–August 15. 20 and July 22–August 31 for all other 13211, and a Statement of Energy Effects (b) Yukon/Kuskokwim Delta Region. birds. is not required. (1) Season: April 2–August 31. (2) Closure: July 1–July 30 for (2) Closure: 30-day closure dates to be seabirds; June 21–July 21 for all other List of Subjects in 50 CFR Part 92 announced by the Service’s Alaska birds. Hunting, Treaties, Wildlife. Regional Director or his designee, after (f) Northwest Arctic Region. (1) consultation with field biologists and Season: April 2–June 14 and July 16– Proposed Regulation Promulgation the Association of Village Council August 31 (hunting in general); For the reasons set out in the President’s Waterfowl Conservation waterfowl egg gathering April 2–June 14 preamble, we propose to amend title 50, Committee. This 30-day period will only; seabird egg gathering May 20–July chapter I, subchapter G, of the Code of occur between June 1 and August 15 of 12 only; hunting molting/non-nesting Federal Regulations as follows: each year. A press release announcing waterfowl July 1–July 15 only.

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(2) Closure: June 15–July 15, except attempting to take, or transporting a line connecting the tip of Homer Spit for the taking of seabird eggs and migratory birds taken during the to the mouth of Fox River) (Eligible molting/non-nesting waterfowl as subsistence harvest season must present Chugach Communities: Port Graham, provided in paragraph (f)(1) of this them to the officer for species Nanwalek): section. identification. (i) Season: April 2–May 31 and July (g) North Slope Region. (1) Southern (h) Interior Region. (1) Season: April 1–August 31. Unit (Southwestern North Slope 2–June 14 and July 16–August 31; egg (ii) Closure: June 1–30. regional boundary east to Peard Bay, gathering May 1–June 14 only. (k) Cook Inlet. (Harvest area: Portions everything west of the longitude line (2) Closure: June 15–July 15. of Game Management Unit 16[B] as 158°30′ W and south of the latitude line (i) Upper Copper River Region specified below) (Eligible communities: 70°45′ N to the west bank of the (Harvest Area: Game Management Units Tyonek only): Ikpikpuk River, and everything south of 11 and 13) (Eligible communities: (1) Season: April 2–May 31—That the latitude line 69°45′ N between the Gulkana, Chitina, Tazlina, Copper portion of Game Management Unit 16(B) west bank of the Ikpikpuk River to the Center, Gakona, Mentasta Lake, south of the Skwentna River and west east bank of Sagavinirktok River): Chistochina and Cantwell). of the Yentna River, and August 1–31— (i) Season: April 2–June 29 and July (1) Season: April 15–May 26 and June That portion of Game Management Unit 30–August 31 for seabirds; April 2–June 27–August 31. 16(B) south of the Beluga River, Beluga 19 and July 20–August 31 for all other (2) Closure: May 27–June 26. Lake, and the Triumvirate Glacier. (3) The Copper River Basin birds. (2) Closure: June 1–July 31. (ii) Closure: June 30–July 29 for communities listed above also (l) Southeast Alaska. (1) Community seabirds; June 20–July 19 for all other documented traditional use harvesting of Hoonah (Harvest area: National Forest birds in Game Management Unit 12, birds. lands in Icy Strait and Cross Sound, (iii) Special Black Brant Hunting making them eligible to hunt in this unit including Middle Pass Rock near the Opening: From June 20–July 5. The using the seasons specified in paragraph Inian Islands, Table Rock in Cross (h) of this section. open area consists of the coastline, from Sound, and other traditional locations (j) Gulf of Alaska Region. (1) Prince mean high water line outward to on the coast of Yakobi Island. The land William Sound Area West (Harvest area: include open water, from Nokotlek Game Management Unit 6[D]), (Eligible and waters of Glacier Bay National Park Point east to longitude line 158°30′ W. Chugach communities: Chenega Bay, remain closed to all subsistence This includes Peard Bay, Kugrua Bay, Tatitlek): harvesting (50 CFR part 100.3(a)): and Wainwright Inlet, but not the Kuk (i) Season: April 2–May 31 and July (i) Season: Glaucous-winged gull egg and Kugrua river drainages. 1–August 31. gathering only: May 15–June 30. (2) Northern Unit (At Peard Bay, (ii) Closure: June 1–30. (ii) Closure: July 1–August 31. everything east of the longitude line (2) Prince William Sound Area East (2) Communities of Craig and ° ′ 158 30 W and north of the latitude line (Harvest area: Game Management Units Hydaburg (Harvest area: Small islands ° ′ 70 45 N to west bank of the Ikpikpuk 6[B]and [C]—Barrier Islands between and adjacent shoreline of western Prince River, and everything north of the Strawberry Channel and Softtuk Bar), of Wales Island from Point Baker to ° ′ latitude line 69 45 N between the west (Eligible Chugach communities: Cape Chacon, but also including bank of the Ikpikpuk River to the east Cordova, Tatitlek, and Chenega Bay): Coronation and Warren islands): bank of Sagavinirktok River): (i) Season: April 2–April 30 (hunting); (i) Season: Glaucous-winged gull egg (i) Season: April 2–June 6 and July 7– May 1–May 31 (gull egg gathering). gathering only: May 15–June 30. August 31 for king and common eiders; (ii) Closure: May 1–August 31 (ii) Closure: July 1–August 31. April 2–June 15 and July 16–August 31 (hunting); April 2–30 and June 1– (3) Community of Yakutat (Harvest for all other birds. August 31 (gull egg gathering). area: Icy Bay (Icy Cape to Point Riou), (ii) Closure: June 7–July 6 for king and (iii) Species Open for Hunting: Greater and coastal lands and islands bordering common eiders; June 16–July 15 for all white-fronted goose; snow goose; the Gulf of Alaska from Point Manby other birds. gadwall; Eurasian and American southeast to and including Dry Bay): (3) Eastern Unit (East of eastern bank wigeon; blue-winged and green-winged (i) Season: Glaucous-winged gull egg of the Sagavanirktok River): teal; mallard; northern shoveler; gathering: May 15–June 30. (i) Season: April 2–June 19 and July northern pintail; canvasback; redhead; (ii) Closure: July 1–August 31. 20–August 31. ring-necked duck; greater and lesser ■ 4. Amend subpart D by adding § 92.32 (ii) Closure: June 20–July 19. scaup; king and common eider; to read as follows: (4) All Units: Yellow-billed loons. harlequin duck; surf, white-winged, and Annually, up to 20 yellow-billed loons black scoter; long-tailed duck; § 92.32 Emergency regulations to protect Steller’s eiders. total for the region inadvertently bufflehead; common and Barrow’s entangled in subsistence fishing nets in goldeneye; hooded, common, and red- Upon finding that continuation of the North Slope Region may be kept for breasted merganser; and sandhill crane. these subsistence regulations would subsistence use. Species open for egg gathering: pose an imminent threat to the (5) North Coastal Zone (Cape Glaucous-winged, herring, and mew conservation of threatened Steller’s Thompson north to Point Hope and east gulls. eiders (Polysticta stelleri), the U.S. Fish along the Arctic Ocean coastline around (iv) Use of Boats/All-Terrain Vehicles: and Wildlife Service Alaska Regional Point Barrow to Ross Point, including No hunting from motorized vehicles or Director, in consultation with the Co- Iko Bay, and 5 miles inland). any form of watercraft. management Council, will immediately (i) No person may at any time, by any (v) Special Registration: All hunters under § 92.21 take action as is necessary means, or in any manner, possess or or egg gatherers must possess an annual to prevent further take. Regulation have in custody any migratory bird or permit, which is available from the changes implemented could range from part thereof, taken in violation of Cordova offices of the Native Village of a temporary closure of duck hunting in subparts C and D of this part. Eyak and the U.S. Forest Service. a small geographic area to large-scale (ii) Upon request from a Service law (3) Kachemak Bay Area (Harvest area: regional or Statewide long-term closures enforcement officer, hunters taking, Game Management Unit 15[C] South of of all subsistence migratory bird

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hunting. These closures or temporary additional Steller’s eiders to be taken no Dated: January 16, 2018. suspensions will remain in effect until longer exists. Jason Larrabee, the Regional Director, in consultation Principal Deputy Assistant Secretary for Fish with the Co-management Council, and Wildlife and Parks Exercising the determines that the potential for Authority of the Assistant Secretary for Fish and Wildlife and Parks. [FR Doc. 2018–02001 Filed 1–31–18; 8:45 am] BILLING CODE 4333–15–P

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Notices Federal Register Vol. 83, No. 22

Thursday, February 1, 2018

This section of the FEDERAL REGISTER number and the agency informs evaluate a borrower’s financial contains documents other than rules or potential persons who are to respond to performance, to determine whether proposed rules that are applicable to the the collection of information that such current loans are at risk, and to public. Notices of hearings and investigations, persons are not required to respond to determine the credit worthiness of committee meetings, agency decisions and the collection of information unless it future loans. rulings, delegations of authority, filing of petitions and applications and agency displays a currently valid OMB control Description of Respondents: Business statements of organization and functions are number. or other-for-profit; Not-for-profit examples of documents appearing in this Rural Utilities Service institutions. section. Number of Respondents: 950. Title: Accounting Requirements for RUS Electric and Telecommunications Frequency of Responses: Recordkeeping; Reporting: On Occasion. DEPARTMENT OF AGRICULTURE Borrowers. OMB Control Number: 0572–0003. Total Burden Hours: 25,650. Submission for OMB Review; Summary of Collection: Rural Utilities Rural Utilities Service Comment Request Service (RUS) is a credit agency of the U.S. Department of Agriculture that Title: 7 CFR part 1724 and Part 1738 January 29, 2018. makes loans (direct and guaranteed) to Electric Engineering, Architectural The Department of Agriculture has finance electric and telecommunications Services and Design Policies and submitted the following information facilities in rural areas. This collection Procedures; and Rural Broadband collection requirement(s) to Office of is primarily a recordkeeping Access Loans and Loan Guarantees. Management and Budget (OMB) for requirement. 7 CFR parts 1767 and 1770 OMB Control Number: 0572–0118. review and clearance under the set forth basic accounting requirements Summary of Collection: The Rural Paperwork Reduction Act of 1995, for maintaining financial accounting Electrification Act of 1936, 7 U.S.C. 901 Public Law 104–13. Comments are records on an accrual basis that are et seq., as amended, authorizes Rural requested regarding (1) whether the unique to RUS borrowers. The agency is Utilities Service (RUS) to make loans in collection of information is necessary requiring borrowers to establish an several States and Territories of the for the proper performance of the index of records. RUS does not own or United States for broadband access and functions of the agency, including operate rural electric facilities. Its rural electrification and the furnishing whether the information will have function is to provide, through self- and improving of electric energy to practical utility; (2) the accuracy of the liquidating loans and technical persons in rural areas. Title 7 CFR 1724 agency’s estimate of burden including assistance, adequate and dependable requires each borrower to select a the validity of the methodology and electric and telecommunications service qualified architect to perform certain assumptions used; (3) ways to enhance to rural people under rates and architectural services and to use the the quality, utility and clarity of the conditions that permit productive use of designated form that provides for these information to be collected; (4) ways to these utility services. RUS borrowers, as services. The agency has developed minimize the burden of the collection of all businesses, need accounting systems standardized contractual forms used by information on those who are to for their own internal use as well as borrowers to contract for services. respond, including through the use of external use. Such records are Need and Use of the Information: The appropriate automated, electronic, maintained as part of normal business information collected stipulates the mechanical, or other technological practices. Without systems, no records parties to the agreement, contain certain collection techniques or other forms of would exist, for example, or what they information relating to the approved information technology. own or what they owe. Such records Comments regarding this information loan or loan guarantee, and provide systems provide borrowers with detailed contractual obligations and collection received by March 5, 2018 information that is required by the will be considered. Written comments services to be provided and performed manager and board of directors to relating to construction, project design, should be addressed to: Desk Officer for operate on a daily basis, to complete construction management, Agriculture, Office of Information and their tax returns, and to support compensation, and related information. Regulatory Affairs, Office of requests to state regulatory commissions The contractual forms provide Management and Budget (OMB), New for rate approvals. Executive Office Building, 725 17th Need and Use of the Information: standardized contract agreements Street NW, Washington, DC 20502. Currently there are approximately 600 between the electric or broadband Commenters are encouraged to submit active electric borrowers and 350 RUS borrower and the engineering or their comments to OMB via email to: telecommunications borrowers. architectural firm providing services to [email protected] or Borrowers may utilize any information the borrower. This has resulted in fax (202) 395–5806 and to Departmental technology that meets their records substantial savings to borrowers by Clearance Office, USDA, OCIO, Mail management needs. RUS uses the reducing preparation of the Stop 7602, Washington, DC 20250– information to evaluate a borrower’s documentation and the costly review by 7602. Copies of the submission(s) may financial performance, to determine the government. be obtained by calling (202) 720–8958. whether current loans are at risk, and to Description of Respondents: Business An agency may not conduct or determine the credit worthiness of or other for-profit. sponsor a collection of information future loans. If basic financial records Number of Respondents: 59. unless the collection of information were not maintained, the borrower, its Frequency of Responses: Reporting: displays a currently valid OMB control investors, and RUS would be unable to On occasion.

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Total Burden Hours: 63. River Road, Unit 46, Riverdale, MD information collection. These comments 20737; (301) 851–3468. For copies of will help us: Ruth Brown, more detailed information on the (1) Evaluate whether the collection of Departmental Information Collection information collection, contact Ms. information is necessary for the proper Clearance Officer. Kimberly Hardy, APHIS’ Information performance of the functions of the [FR Doc. 2018–01983 Filed 1–31–18; 8:45 am] Collection Coordinator, at (301) 851– Agency, including whether the BILLING CODE 3410–15–P 2483. information will have practical utility; SUPPLEMENTARY INFORMATION: (2) Evaluate the accuracy of our DEPARTMENT OF AGRICULTURE Title: Trichinae Certification Program. estimate of the burden of the collection OMB Control Number: 0579–0323. of information, including the validity of Animal and Plant Health Inspection Type of Request: Revision to and the methodology and assumptions used; Service extension of approval of an information (3) Enhance the quality, utility, and collection. clarity of the information to be [Docket No. APHIS–2018–0002] Abstract: Under the Animal Health collected; and Notice of Request for Revision To and Protection Act (7 U.S.C. 8301 et seq.), (4) Minimize the burden of the Extension of Approval of an the Animal and Plant Health Inspection collection of information on those who Information Collection; Trichinae Service (APHIS) of the U.S. Department are to respond, through use, as Certification Program of Agriculture is authorized, among appropriate, of automated, electronic, other things, to prohibit or restrict the mechanical, and other collection AGENCY: Animal and Plant Health importation and interstate movement of technologies; e.g., permitting electronic Inspection Service, USDA. animals and animal products to prevent submission of responses. ACTION: Revision to and extension of an the introduction into and dissemination Estimate of burden: The public approval of an information collection; within the United States of livestock burden for this collection of information comment request. diseases and pests and to conduct is estimated to average 0.48 hours per programs to detect, control, and response. SUMMARY: In accordance with the eradicate pests and diseases of livestock. Respondents: Auditors (accredited Paperwork Reduction Act of 1995, this In addition, under the Agricultural veterinarians or State animal health notice announces the Animal and Plant Marketing Act of 1946 (7 U.S.C. 1622), officials), pork producers, mill Health Inspection Service’s intention to the APHIS Administrator has authority managers, slaughter facility personnel, request a revision to and extension of with respect to voluntary inspection and and personnel from approved approval of an information collection certification of animal products and the laboratories. associated with the voluntary Trichinae inspection, testing, treatment, and Estimated annual number of Certification Program. certification of animals. respondents: 66. DATES: We will consider all comments APHIS regulations in 9 CFR part 149 Estimated annual number of that we receive on or before April 2, contain certification requirements for responses per respondent: 16. 2018. the voluntary Trichinae Certification Estimated annual number of Program, which is a cooperative effort ADDRESSES: You may submit comments responses: 1,085. by APHIS and the U.S. pork industry. by either of the following methods: Estimated total annual burden on The program is intended to enhance the • Federal eRulemaking Portal: Go to respondents: 521 hours. (Due to ability of swine producers, as well as http://www.regulations.gov/#!docket averaging, the total annual burden hours slaughter facilities and other persons Detail;D=APHIS-2018-0002. may not equal the product of the annual that handle or process swine from pork • Postal Mail/Commercial Delivery: number of responses multiplied by the production sites that have been certified Send your comment to Docket No. reporting burden per response.) under the program, to export fresh pork APHIS–2018–0002, Regulatory Analysis All responses to this notice will be and pork products to foreign markets. summarized and included in the request and Development, PPD, APHIS, Station There are a number of information 3A–03.8, 4700 River Road, Unit 118, for OMB approval. All comments will collection activities associated with the also become a matter of public record. Riverdale, MD 20737–1238. voluntary Trichinae Certification Supporting documents and any Program, such as requests to temporarily Done in Washington, DC, this 26th day of comments we receive on this docket withdraw from the program, notification January 2018. may be viewed at http:// to APHIS of program withdrawal, Kevin Shea, www.regulations.gov/#!docket requests for review of audit results or Administrator, Animal and Plant Health Detail;D=APHIS-2018-0002 or in our other determinations, certification site Inspection Service. reading room, which is located in room audit forms and requests for [FR Doc. 2018–01993 Filed 1–31–18; 8:45 am] 1141 of the USDA South Building, 14th certification site audits, spot audits, BILLING CODE 3410–34–P Street and Independence Avenue SW, animal disposal plans, animal Washington, DC. Normal reading room movement records, rodent control hours are 8 a.m. to 4:30 p.m., Monday logbooks, feed mill quality assurance DEPARTMENT OF AGRICULTURE through Friday, except holidays. To be affidavits, slaughter testing records, and Commodity Credit Corporation sure someone is there to help you, recordkeeping. please call 202–799–7039 before We are asking the Office of coming. Withdrawal of the Notice of Funds Management and Budget (OMB) to Availability (NOFA) for and the FOR FURTHER INFORMATION CONTACT: For approve our use of these information Cancellation of the Farm-to-Fleet information on the Trichinae collection activities, as described, for an Feedstock Program Biofuel Production Certification Program, contact Dr. John additional 3 years. Incentive (BPI) Korslund, Staff Epidemiologist, The purpose of this notice is to solicit Surveillance, Preparedness and comments from the public (as well as AGENCY: Commodity Credit Corporation Response Services, VS, APHIS, 4700 affected agencies) concerning our and Farm Service Agency, USDA.

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ACTION: Notice of withdrawal and DLA Energy solicitations that are national infrastructure need to create a cancellation. announced after this withdrawal is single, nationwide interoperable published. network that will, for the first time, SUMMARY: The U.S. Department of allow public safety entities such as Steven J. Peterson, Agriculture (USDA) Commodity Credit police officers, fire fighters, emergency Corporation (CCC) has withdrawn Executive Vice President, Commodity Credit medical service professionals, and other Corporation. support for the Farm-to-Fleet BPI public safety personnel to effectively Program, and is cancelling funding for [FR Doc. 2018–02028 Filed 1–31–18; 8:45 am] communicate with each other across the BPI payments to companies that are BILLING CODE 3410–05–P agencies and jurisdictions. refining biofuel in the United States On April 28, 2014, FirstNet, as a from certain domestically grown newly created federal entity, published feedstocks converted to drop-in biofuel DEPARTMENT OF COMMERCE a notice in the Federal Register for delivery to supply biofuels to the finalizing its NEPA implementing Navy. USDA has reassessed how to best National Telecommunications and procedures.2 These NEPA implementing use limited available funds and has Information Administration procedures provided the framework for determined that the BPI is no longer a [Docket Number: 131219999–7305–03] FirstNet’s establishment of a NEPA priority for CCC funding. The impact of compliance program and for applying this withdrawal is that suppliers of fuel RIN 0660–XC009 the appropriate level of NEPA review containing a biofuel blend to the U.S. First Responder Network Authority; for major federal actions related to the Navy are no longer eligible to receive a Revised National Environmental Policy deployment of the NPSBN. More CCC incentive payment, through the Act Procedures and Categorical specifically, FirstNet’s NEPA Farm-to-Fleet BPI Program. Exclusions implementing procedures supplemented DATES: Effective: February 1, 2018. the Council on Environmental Quality FOR FURTHER INFORMATION CONTACT: AGENCY: First Responder Network (‘‘CEQ’’) regulations and provided Kelly Novak, (202) 720–4053. Authority, National guidance to FirstNet employees and SUPPLEMENTARY INFORMATION: A notice Telecommunications and Information potential Applicants regarding the of funds availability for the Farm-to- Administration, U.S. Department of procedural requirements for the Fleet Feedstock BPI was published in Commerce. application of NEPA.3 the Federal Register on December 29, ACTION: Notice. As it has continued to mature as an 2016, (81 FR 95956–95958). The BPI SUMMARY: The First Responder Network organization, FirstNet has identified the payments were intended to support a Authority (‘‘FirstNet’’) publishes this need to modify its NEPA implementing joint USDA and U.S. Navy Farm-to-Fleet notice of its final procedures for procedures and revise its list of Program that was announced in implementing the National categorical exclusions and extraordinary December 2013, which provided Environmental Policy Act (‘‘NEPA’’). circumstances (CEs) to ensure that such incentive funds to companies that are The final procedures include a revised procedures better align with FirstNet’s refining biofuel in the United States list of, and replace, previously statutory mission and activities related from certain domestically grown established categorical exclusions to the deployment of the NPSBN, as feedstocks converted to drop-in biofuel (‘‘CEs’’) and extraordinary well as better assist FirstNet in for delivery to supply biofuels to the circumstances. complying with NEPA as well as CEQ Navy. and Federal Communications CCC funds, administered by the Farm DATES: These procedures take effect as Commission (‘‘FCC’’) regulations. More Service Agency (FSA), were used for of February 1, 2018. specifically, FirstNet, as both an BPI payments to help increase the FOR FURTHER INFORMATION CONTACT: Eli independent federal authority and a domestic consumption of agricultural Veenendaal, First Responder Network licensee of the FCC, must satisfy its own commodities in the biofuel market. Up Authority, National NEPA obligations as well as comply to $50 million of CCC funds was Telecommunications and Information with FCC-promulgated NEPA announced as being available through Administration, U.S. Department of procedures.4 FY 2018. This notice withdraws the Commerce, 3122 Sterling Circle, Suite Accordingly, on June 23, 2017, availability of BPI payments for 100, Boulder, CO 80301 or FirstNet published for comment deliveries not yet solicited or procured [email protected]. proposed revisions to its NEPA by the U.S. Navy and Defense Logistics SUPPLEMENTARY INFORMATION: implementing procedures and Agency (DLA) Energy office and cancels I. Background USDA support for biofuel blends 2 FirstNet, National Environmental Policy Act solicited by the DLA Energy office and The Middle Class Tax Relief and Job Implementing Procedures and Categorical US Navy. Specifically, FSA will Creation Act of 2012 (47 U.S.C. 1401 et Exclusions, 79 FR 23,950 (April 29, 2014). continue to make the BPI payments seq.) (the ‘‘Act’’) established the First 3 The term ‘‘Applicant’’ means any person, entity, required under the existing Responder Network Authority or federal, state, tribal, or territorial government body that seeks to take an action related to the commitments. BPI payments will (‘‘FirstNet’’) as an independent Nationwide Public Safety Broadband Network continue to be made to the eligible authority within the National (NPSBN) or an action that is otherwise under the claimant awarded a contract under DLA Telecommunications and Information direct control and responsibility of FirstNet, Energy’s Rocky Mountain West Administration (‘‘NTIA’’). FirstNet’s including, but not limited to, actions that occur under any type of agreement related to the use of solicitation (SPE600–17–R–0709) and statutory mission is to take all actions the spectrum licensed to FirstNet under station BPI payments will be made on any necessary to ensure the establishment of license call sign WQQE234, or actions requiring the awards resulting from the Rocky a nationwide public safety broadband approval of or funding provided by FirstNet. Mountain West and Inland East Gulf network (‘‘NPSBN’’).1 Moreover, the Act 4 See generally 40 CFR 1507.3 (stating federal agencies with overlapping NEPA requirements solicitations published prior to the meets a long-standing and critical related to the same project are encouraged to publication of this withdrawal. No BPI streamline their NEPA implementing procedures to payments will be made related to any 1 47 U.S.C. 1426(b). avoid duplicative NEPA review).

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categorical exclusions.5 Publication of actual proposed changes and process are citizen, focused their comments on the notice began a 30-day comment not written in ‘‘plain English’’ as whether the revised procedures include period that ended on July 24, 2017. required by law. sufficient environmental review Comments were received from three (3) Response: FirstNet disagrees that its requirements to protect migratory birds. sources, consisting of the U.S. revised NEPA procedures do not In particular, the DOI requested that Department of the Interior (‘‘DOI’’) and conform to the plain language FirstNet’s procedures include a process two private citizens. A complete set of requirements established by the Plain for ensuring compliance with the Bald comments filed in response to the Writing Act of 2010 (5 U.S.C. 301 et and Golden Eagle Protection Act Revised First Responder Network seq.) (‘‘PWA’’) and reiterates that the (‘‘BGEPA’’), Migratory Bird Treaty Act Authority: National Environmental references to the FCC regulations are (‘‘MBTA’’), and Executive Order (E.O.) Policy Act Implementing Procedures necessary to support its compliance 13186, Responsibilities of Federal and Categorical Exclusions may be with both NEPA and FCC Agencies to Protect Migratory Birds. viewed at https://www.regulations.gov/ environmental rules. Response: FirstNet acknowledges the docketBrowser?rpp=25&po=0&dct=PS& The PWA defines the term ‘‘plain comments and asserts its revised NEPA D=FIRSTNET-2017-0001&refD= writing’’ to mean writing that is clear, implementing procedures sufficiently FIRSTNET-2017-0001-0001. The final concise, well-organized, and follows consider environmental resources, as procedures are available for review at best practices appropriate to the subject well as support compliance with www.firstnet.gov. or field and intended audience.8 In FirstNet consulted with the CEQ on drafting the revised NEPA procedures, environmental statutes and regulations the proposed and final revisions to its FirstNet sought to follow established that are applicable to the deployment of NEPA implementing procedures and plain language guidelines, including the NPSBN, including those related to CEs. The CEQ issued a letter stating that those promulgated by the Department of migratory birds. In particular, FirstNet’s it has reviewed the revised procedures, Commerce and those developed by the revised NEPA implementing procedures including CEs, and found it to be in Office of Management and Budget to include, among other statutory and conformity with NEPA and CEQ provide the agency’s guidance for regulatory references, specific language regulations.6 complying with the PWA.9 In identifying the BGEPA, and MBTA as accordance with the PWA and relevant well as E.O. 13186, Responsibilities of II. Comments and Agency Responses guidelines, FirstNet’s implementing Federal Agencies to Protect Migratory Comments on the proposed procedures were drafted in a manner Birds as areas, that should be procedures and categorical exclusions that sought to follow best practices considered, as appropriate, as part of a included several similar positions, appropriate to the subject or field and NEPA review. For example, the section inquiries both within and outside the intended audience. entitled ‘‘Environmental Review and scope of the procedures, and In particular, FirstNet, as both a Consultation Requirements for NEPA recommendations stemming from the Federal entity and an FCC spectrum Review,’’ requires FirstNet to prepare proposed procedural revisions and licensee, drafted the revised procedures NEPA documents concurrently and categorical exclusions. FirstNet has to align its responsibility to comply integrated with environmental analyses carefully considered each of the with NEPA with the requirements and related surveys and studies required comments submitted, grouped and placed upon it as an FCC licensee.10 by applicable environmental laws and summarized the comments by issues Consequently, FirstNet’s NEPA E.O., including the BGEPA and raised, and responded accordingly. implementing procedures, including the MBTA.11 Similarly, Appendix D references to the FCC regulations, are specifies that during the development of A. Use of Existing Infrastructure primarily intended to inform FirstNet’s a NEPA review, FirstNet should Comment: One commenter personnel and applicants, as defined in consider the applicability of BGEPA, recommended deploying network its NEPA implementing procedures, of MBTA, and E.O. 13186, Responsibilities infrastructure on lands that have already FirstNet’s process for complying with of Federal Agencies to Protect Migratory been commercially developed to help NEPA and CEQ regulations while also Birds as part of a NEPA review.12 mitigate the environmental impact of complying with FCC regulations. FirstNet originally added and has network deployment on public lands. Accordingly, FirstNet’s use of, and retained the references to these statutes Response: FirstNet agrees with the references to, the FCC regulations in the based on previous comments from the comment, and, consistent with the revised implementing procedures are DOI.13 Accordingly, FirstNet’s NEPA recommendation and its mandate under necessary to ensure that FirstNet’s review process, inclusive of the existing the Act, has sought and entered into an implementing procedures align with the language related to MBTA and BGEPA, agreement to utilize, to the maximum FCC environmental rules that are adequately accounts for the resources extent economically desirable, existing already applicable to FirstNet. protected by these statutes and commercial or other communications regulations when applicable to a infrastructure in the establishment of C. Protections for Migratory Birds the NPSBN.7 Comment: Two commenters, 11 consisting of the DOI and one private FirstNet, National Environmental Policy Act B. Use of Plain Language Implementing Procedures (Revised June 2017) available at https://www.firstnet.gov/sites/default/ Comment: One commenter expressed 8 5 U.S.C. 301.3. files/FirstNet%20Revised%20Implementing concern that the references in the 9 See Department of Commerce PLAIN Language, %20Procedures%20%0;28Updated%20June%20 proposed procedures to the FCC available at https://www.commerce.gov/page/ 2017%29.pdf. regulations are unclear, and that the department-commerce-plain-language; See also 12 See FirstNet, Procedures for Implementing the Federal Plain Language Guidelines, available at National Environmental Policy Act, Appendix A— http://www.plainlanguage.gov/howto/guidelines/ List of Authorities, available at https:// 5 FirstNet, Revised National Environmental Policy FederalPLGuidelines/FederalPLGuidelines.pdf. www.firstnet.gov/sites/default/files/FirstNet%20 Act Implementing Procedures and Categorical 10 See 47 U.S.C. 1421(a) (consistent with this Revised%20Implementing%20Procedures Exclusions, 82 FR 28,621 (June 23, 2017). provision, the FCC granted an exclusive license to %20%28Updated%20June%202017%29.pdf. 6 See CEQ FirstNet Conformity Letter (January 29, FirstNet for the use of the 700 MHz D block 13 FirstNet, National Environmental Policy Act 2018) available at www.firstnet.gov. spectrum under Call Sign WQQE234 on November Implementing Procedures and Categorical 7 47 U.S.C. 1426(b). 15, 2012). Exclusions, 79 FR 23,950, 23,953 (April 29, 2014).

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FirstNet proposed action subject to mission to ensure the establishment of NEPA and CEQ regulations, as well as NEPA review. the NPSBN which is not greater than, existing FCC environmental rules Comment: The DOI recommended but, rather, subject to, applicable FCC applicable to other licensees, the revised that FirstNet’s NEPA implementing rules and regulations, including those NEPA implementing procedures are procedures should be explicitly more environmental rules applicable to tower sufficient to account for environmental protective of migratory birds than the and antenna siting. Accordingly, the resources, such as migratory birds, that FCC’s procedures. The DOI states that DOI’s comments that FirstNet has a may be impacted by network the FCC does not ‘‘authorize or greater degree of authority for siting deployment. approve’’ the siting of towers, and communications towers than the FCC is D. Scope of Term ‘‘Wildlife Preserve’’ therefore does not have as great a need incorrect. for procedures for site-specific Furthermore, as mentioned above, Comment: The DOI stated that environmental review and compliance. FirstNet asserts that its revised NEPA ‘‘wildlife preserve’’ is not a term defined DOI argues that in contrast to the FCC, implementing procedures sufficiently or used for lands managed by DOI. The FirstNet has a ‘‘greater degree of consider environmental resources under DOI argued that FirstNet’s use of this authority and responsibility for siting of NEPA and support compliance with term in its procedures creates ambiguity communication towers and is environmental statutes and regulations regarding whether ‘‘wildlife preserve’’ conducting several related applicable to the deployment of the includes National Park Systems units, Environmental Impact Statements.’’ NPSBN. FirstNet disagrees with DOI many of which protect wildlife species. Consequently, DOI argues that FirstNet’s that it must have environmental review In particular, the DOI recommended procedures should ‘‘be explicitly more standards explicitly more protective of FirstNet not remove the original protective’’ of migratory birds. migratory birds than those of the FCC as language that identifies the scope of Response: FirstNet disagrees with such requirements would jeopardize environmentally sensitive areas, and both the DOI’s: (1) Assertion that FirstNet’s ability to fulfill its statutory suggested that FirstNet continue to FirstNet has greater degree of authority mission. include explicit language accounting for for siting of communications towers FirstNet’s statutory mission, as Fish and Wildlife Refuge lands. than the FCC and (2) recommendation previously stated, is to ensure the Response: FirstNet acknowledges the that FirstNet’s NEPA implementing establishment of the NPSBN, and in comment, but believes the use of the procedures should be explicitly more doing so, make efforts to speed the term ‘‘wildlife preserve’’ in concert with protective of migratory birds than those deployment of the network in order to the other newly established of the FCC. make services available for public safety extraordinary circumstances in its First, in regard to the siting of entities.18 In addition, FirstNet is NEPA procedures sufficiently communication towers, the DOI appears required to be a permanent self-funding encompasses a proposed action that to be confused about the statutory roles entity that supports its operations and would fall within the jurisdiction of of both FirstNet and the FCC and the network deployment primarily through another federal agency, including nature of the relationship between the the assessment of various fees.19 National Park Systems units.21 agencies. The FCC, not FirstNet, is the Consequently, to help ensure successful More specifically, FirstNet’s full list federal agency primarily responsible for network deployment and ongoing of extraordinary circumstances implementing and enforcing the operations, FirstNet, in accordance with encompasses resources beyond nation’s communications law and its enabling legislation, entered into a ‘‘wildlife preserves,’’ and includes both regulations, including the management public-private arrangement to build, ‘‘wilderness areas’’ and ‘‘areas that may and licensing of the electromagnetic operate, and maintain the NPSBN.20 As affect listed threatened or endangered spectrum for commercial use.14 As part a result, the NPSBN will be built, species or designated critical habitats; or of its responsibilities, the FCC requires owned, and operated by a private (ii) are likely to jeopardize the its licensees and registrants conducting company as a commercial wireless continued existence of any proposed tower or antenna siting activities (e.g., telecommunications network and must endangered or threatened species or building a new tower or collocating on compete in the open market for public likely to result in the destruction or an existing structure) to comply with safety entity customers. adverse modification of proposed FCC rules for environmental review.15 To that end, additional environmental critical habitats, as determined by the These rules ensure that licensees and requirements above and beyond those Secretary of the Interior pursuant to the registrants take appropriate measures to legally required of all FCC licensees Endangered Species Act of 1973 (16 protect environmental and historic would likely disadvantage FirstNet in U.S.C. 1531) (‘‘ESA’’).’’ 22 resources, support FCC compliance with its efforts to provide timely and Furthermore, as a general matter, its obligations under NEPA and other competitively priced services to public NEPA requires federal agencies to applicable environmental laws and safety entities due to the addition of coordinate environmental reviews with regulations, and consider the potential unnecessary costs and subsequent agencies with jurisdiction over specific environmental impact of their actions.16 delays in network deployment resources.23 Thus, FirstNet, when FirstNet, as a point of fact, is a stemming from these requirements. As a applicable to a proposed action, would licensee of the FCC and is subject to result, FirstNet’s ability to meet it be required to coordinate with DOI in FCC environmental rules, including statutory mandate and establish and those related to tower and antenna ensure the on-going viability of an 21 In response to DOI’s comment the term 17 siting. FirstNet’s authority is, interoperable, nationwide broadband ‘‘environmental sensitive areas’’ as used in its therefore, limited to its express statutory implementing procedures was not based on any network for public safety would be put express statutory definition promulgated by DOI or at significant risk. Accordingly, because any other agency. 14 See generally Communication Act of 1934 (47 the revisions to FirstNet’s NEPA 22 See FirstNet, Procedures for Implementing the U.S.C. 151 et. seq.); see generally also FCC website implementing procedures comply with National Environmental Policy Act, Appendix C- available at https://www.fcc.gov/about-fcc/what-we- List of Extraordinary Circumstances, available at do. https://www.firstnet.gov/sites/default/files/FirstNet 15 Id. 18 See generally 47 U.S.C. 1426(b). %20Revised%20Implementing%20Procedures 16 Id. 19 See 47 U.S.C. 1428(b). %20%28Updated%20June%202017%29.pdf. 17 See 47 U.S.C. 1421(a). 20 See generally 47 U.S.C. 1426(b), 1428(a)(2). 23 See 40 CFR 1502.25.

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order to comply with NEPA. For resources, including those under the the FCC environmental rules and instance, FirstNet’s obligation to jurisdiction of DOI, that may be determined that aligning the FirstNet account for threatened or endangered impacted by network deployment and and FCC NEPA processes, including CEs species or designated critical habitats comply with the requirements and extraordinary circumstances, was under the ESA, is not absolved under established by NEPA and CEQ necessary in order to avoid duplicating the revised NEPA implementing regulations. analysis and documentation resulting in procedures.24 Comment: The DOI requested FirstNet additional costs or delays in network Moreover, NPSBN deployment on address why it is proposing to modify deployment. A key part of aligning these federal lands or impacting resources the extraordinary circumstance in processes was ensuring that the FirstNet under another agency’s jurisdiction, Appendix D related to ‘‘environmentally processes and standard of review, including the DOI, will be identified sensitive’’ resources, especially in light including CEs and extraordinary and considered by FirstNet under of the previous inclusion of language to circumstances, were consistent with the NEPA, at a minimum, if not directly, this CE that was added in the response FCC environmental rules, which through other applicable processes (e.g., to DOI comments on FirstNet’s necessitated removing and replacing permits, licenses) necessary to deploy originally proposed FirstNet NEPA previously established extraordinary the network. For example, construction procedures. circumstances. Accordingly, as the FCC of a new or replacement of an old tower Response: FirstNet, as it has has well established and applied on land managed by the National Park continued to mature as an organization, environmental rules for complying with Services (NPS) would likely require has identified a need to modify its NEPA, specifically applicable to tower FirstNet, or its Applicant, to apply for NEPA implementing procedures, CEs, construction and siting, FirstNet, among a Right-of-Way permit, which would and related extraordinary circumstances other modifications, removed its trigger a NEPA review by both FirstNet to ensure that the standards and process previously established categorical and NPS. In such cases, FirstNet, related to NEPA review better aligned exclusion referencing ‘‘environmentally consistent with CEQ regulations, would with FirstNet’s statutory mission and sensitive’’ resources and replaced it coordinate with the NPS to provide the activities related to the deployment of with multiple other extraordinary environmental analysis necessary to the NPSBN, as well as better assist circumstances, which, as discussed support both its own and the NPS NEPA FirstNet in complying with NEPA as above, FirstNet considers both sufficient review and determination, which would well as CEQ and FCC regulations. to account for resources previously presumably cover resources under the Specifically, when FirstNet finalized its identified as ‘‘environmentally 25 jurisdiction of NPS. Similarly, where original NEPA implementing sensitive,’’ while ensuring a consistent NPSBN deployment occurs on non- procedures, the network architecture and streamlined NEPA review process federal lands, FirstNet, as mentioned and operational model for the NSPBN as contemplated by CEQ regulations and above, must still comply with existing had not yet been finalized. However, guidance. environmental laws (e.g., ESA, MBTA, since the original NEPA implementing and BGEPA) that may apply to the E. General Requirements for procedures were finalized, FirstNet has Environmental Assessments proposed action. Thus, to the extent identified and approved a network Comment: The DOI expressed these laws apply and require additional architecture and operation model. concerns that all towers lower than 450 consultation or additional Moreover, FirstNet has completed the feet may be pre-determined as CE environmental analysis prior to statutorily mandated request for undertaking the proposed action, eligible and recommended FirstNet proposal process, and has entered into FirstNet, in addition to complying with prepare an environmental assessment a public-private partnership to build, the specific laws and consistent with its for all new installations that are above operate, improve, and maintain the revised implementing procedures, 199 feet above ground level (AGL), not NPSBN.27 These changes required would consider this information as part co-located with existing facilities or are FirstNet to review its NEPA of any NEPA review. guyed. Moreover, DOI recommended Furthermore, FirstNet, in accordance implementing procedures and current adherence to FWS Recommend Best with its implementing procedures, upon CEs to ensure they reflected current Practices for Communication Tower reviewing a proposed action that would agency policies, procedures, program, 28 Design, Siting, Construction, Operation, otherwise be categorically excluded, and mission. Maintenance, and Decommissioning. including those installations described During this review, FirstNet identified Response: FirstNet disagrees with the by DOI, could determine that the that as both an independent federal recommendation that new installations proposed action may potentially have a authority and a licensee of the FCC, it that are above 199 feet AGL, not co- significant impact and on its own must comply with potentially located with existing facilities, or are motion require the development of an duplicative regulations, such as those guyed require: (1) An environmental environmental assessment.26 imposed under NEPA, CEQ regulations, assessment and (2) adherence to the Accordingly, as previously stated, the and FCC regulations. In particular, FWS Recommended Best Practices for revised NEPA implementing procedures FirstNet determined that all NPSBN Communications Tower Design, Siting, adequately account for environmental proposed activities undertaken would Construction, Operation and be subject to both FirstNet NEPA Decommissioning.29 24 See e.g., Endangered Species Act, 16 U.S.C. procedure and FCC rules and First, as a point of clarity and contrary 1531 et. seq.; See also e.g., 16 U.S.C. 1531 et seq. regulations. Consequently, FirstNet to DOI’s concern, FirstNet will not pre- (which, similar other statutes and regulations, apply conducted a review comparing its determine any proposed action, to actions separate and independent from NEPA). existing implementing procedures, CEs, 25 See generally 40 C.F.R 1502.25. including towers lower than 450, are 26 See FirstNet, Procedures for Implementing the and extraordinary circumstances with National Environmental Policy Act, Appendix C— 29 See FWS, Recommended Best Practices for List of Extraordinary Circumstances, available at 27 Award Notice, FirstNet Nationwide Public Communication Tower Design, Siting, https://www.firstnet.gov/sites/default/files/ Safety Broadband Network available at https:// Construction, Operation, Maintenance, and FirstNet%20Revised%20Implementing www.fbo.gov/notices/6d45e0f8f3f4911f44f9f5b77 Decommissioning (August 2016), https:// %20Procedures%20%28 d614952. www.fws.gov/migratorybirds/pdf/management/ Updated%20June%202017%29.pdf. 28 See 40 CFR 1506.3. usfwscommtowerguidance.pdf.

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eligible for a CE as such a determination development of an environmental jurisdiction, FirstNet should provide would be inconsistent with NEPA or assessment.32 that agency with some level of CEQ regulations. Specifically, NEPA Accordingly, FirstNet’s NEPA review documentation regarding the and CEQ regulations require that an process, inclusive of the existing environmental effects to assist the agency consider and make a language related to MBTA and BGEPA permitting agency in its review of the determination related to the and in addition to its various other proposed action. environmental impacts of a proposed extraordinary circumstances, adequately Response: FirstNet agrees, and, 30 action. FirstNet, consistent with CEQ accounts for the resources and potential consistent with CEQ regulations, regulations and its revised environmental impacts necessary for intends to coordinate and provide implementing procedures, will conduct FirstNet to make a NEPA determination environmental documents, as site-specific reviews for each new tower related to the proposed action, appropriate, to other federal agencies to determine the appropriate level of including whether the development of having jurisdiction over all or part of a NEPA review. an EA is necessary to determine the FirstNet proposed action, including Second, FirstNet asserts that environmental impacts. those that may have permitting compliance with its revised NEPA Finally, FirstNet recognizes, as noted authority applicable to NPSBN implementing procedures will provide by the DOI, that the FWS has formulated deployment.34 sufficient information for FirstNet to best practices for tower siting to address review and make a determination as to the potential effects of tower and Dated: January 29, 2018. the appropriate level of NEPA review antenna structures on migratory birds. Elijah Veenendaal, for any site-specific action, including FirstNet has taken steps that will align Attorney-Advisor, First Responder Network new installations that are above 199 feet the deployment of the NPSBN with Authority. AGL, not co-located with existing these best practices, particularly by [FR Doc. 2018–02020 Filed 1–31–18; 8:45 am] facilities or are guyed. In particular, as adopting a strategy that will facilitate BILLING CODE 3510–TL–P discussed above, FirstNet’s revised tower co-locations. Consistent with the NEPA implementing procedures DOI’s tower siting guidance, FirstNet include, among other statutory and has sought and entered into an DEPARTMENT OF COMMERCE regulatory references, specific language agreement to utilize, to the maximum identifying the BGEPA, MBTA, and E.O. extent economically desirable, existing International Trade Administration 13186, Responsibilities of Federal commercial or other communications Agencies to Protect Migratory Birds as Antidumping or Countervailing Duty infrastructure in the establishment of Order, Finding, or Suspended areas, that should be considered, as the NPSBN.33 As a result, the vast appropriate, as part of a NEPA review.31 Investigation; Advance Notification of majority of antenna structures currently Sunset Reviews Furthermore, as previously stated, planned for deployment on the NPSBN FirstNet, in accordance with its will be co-locations on existing AGENCY: Enforcement and Compliance, implementing procedures, upon communication towers or other reviewing a proposed action that would International Trade Administration, structures. Thus, FirstNet, in accordance Department of Commerce. otherwise be categorically excluded, with the DOI voluntary guidelines, has including those installations described already undertaken efforts to reduce the Background by DOI, could, as previously mentioned, potential impacts of NPSBN deployment Every five years, pursuant to the Tariff determine that the proposed action may on migratory birds through the design of potentially have a significant impact Act of 1930, as amended (the Act), the its program. Department of Commerce (Commerce) and on its own motion require the Nevertheless, FirstNet, consistent and the International Trade Commission with the FCC’s recommendation to its 30 automatically initiate and conduct a See FirstNet, Procedures for Implementing the licensees, will consider implementing National Environmental Policy Act—E0. review to determine whether revocation these voluntary guidelines, as Environmental Review and Consultation of a countervailing or antidumping duty Requirements for NEPA Review, available at practicable and feasible, in the order or termination of an investigation https://www.firstnet.gov/sites/default/files/FirstNet deployment of the NPSBN, but will not %20Revised%20Implementing%20Procedures suspended under section 704 or 734 of make them a mandatory requirement of %20%28Updated%20June%202017%29.pdf. the Act would be likely to lead to 31 NPSBN deployment. FirstNet also notes that, in general, the FCC continuation or recurrence of dumping rules require new tower construction to (1) receive approval from the state or local governing authority F. Other Agency Jurisdiction or a countervailable subsidy (as the case for the proposed site; (2) comply with FCC rules may be) and of material injury. implementing NEPA; (3) comply with ESA and Comment: DOI recommended that NHPA (including Section 106). Moreover, when FirstNet applies categorical Upcoming Sunset Reviews for March depending on the tower’s height and location exclusions for the placement of 2018 (generally towers more than 200 feet above ground antennas in another agency’s level or located near an airport), construction may Pursuant to section 751(c) of the Act, also require Federal Aviation Administration (FAA) notification and clearance and Antenna Structure 32 See FirstNet, Procedures for Implementing the the following Sunset Reviews are Registration (ASR) with the FCC. Thus, in addition National Environmental Policy Act, Appendix C- scheduled for initiation in March 2018 to FirstNet’s implementing procedures, there are List of Extraordinary Circumstances, available at and will appear in that month’s Notice other regulatory requirements applicable to https://www.firstnet.gov/sites/default/files/ of Initiation of Five-Year Sunset Reviews FirstNet, as an FCC licensee, which may provide FirstNet%20Revised%20Implementing information related to environmental resources and %20Procedures%20%28Updated%20 (Sunset Reviews). be considered as part of a NEPA and ensure June%202017%29.pdf. compliance with other applicable laws. 33 See Award Notice, supra note 27. 34 See generally 40 CFR 1502.25.

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Department contact

Antidumping Duty Proceedings Drawn Stainless Steel Sinks from China, (A–570–983) (1st Review) ...... Robert James, (202) 482–0649. Countervailing Duty Proceedings Drawn Stainless Steel Sinks from China, (C–570–984) (1st Review) ...... Robert James, (202) 482–0649. Suspended Investigations No Sunset Review of suspended investigations is scheduled for initiation in March 2018.

Commerce’s procedures for the Commerce is issuing countervailing description of the scope of these orders, conduct of Sunset Reviews are set forth duty orders on certain cold-drawn see the Appendix to this notice. in 19 CFR 351.218. The Notice of mechanical tubing of carbon and alloy Countervailing Duty Orders Initiation of Five-Year (Sunset) Reviews steel (cold-drawn mechanical tubing) provides further information regarding from the People’s Republic of China As stated above, on January 24, 2018, what is required of all parties to (China) and India. in accordance with sections 705(d) of participate in Sunset Reviews. DATES: February 1, 2018. the Act, the ITC notified Commerce of Pursuant to 19 CFR 351.103(c), FOR FURTHER INFORMATION CONTACT: its final determination that an industry Commerce will maintain and make Shanah Lee at (202) 482–6386, AD/CVD in the United States is materially available a service list for these Operations, Office III, and Ryan Mullen injured by reason of subsidized imports proceedings. To facilitate the timely at (202) 482–5260, AD/CVD Operations, of cold-drawn mechanical tubing from preparation of the service list(s), it is Office V, Enforcement and Compliance, China and India.3 Therefore, in requested that those seeking recognition International Trade Administration, accordance with section 705(c)(2) of the as interested parties to a proceeding U.S. Department of Commerce, 1401 Act, Commerce is issuing these contact Commerce in writing within 10 Constitution Avenue NW, Washington, countervailing duty orders. Because the days of the publication of the Notice of DC 20230. ITC determined that imports of cold- Initiation. SUPPLEMENTARY INFORMATION: drawn mechanical tubing from China Please note that if Commerce receives and India are materially injuring a U.S. a Notice of Intent to Participate from a Background industry, unliquidated entries of such member of the domestic industry within In accordance with section 705(d) of merchandise from China and India, 15 days of the date of initiation, the the Tariff Act of 1930, as amended (the entered or withdrawn from warehouse review will continue. Act), and 19 CFR 351.210(c), on for consumption, are subject to the Thereafter, any interested party December 11, 2017, Commerce assessment of countervailing duties. wishing to participate in the Sunset published its affirmative final As a result of the ITC’s final Review must provide substantive determinations in the countervailing determination, in accordance with comments in response to the notice of duty investigations of cold-drawn section 706(a) of the Act, Commerce initiation no later than 30 days after the mechanical tubing from China and will direct U.S. Customs and Border date of initiation. India.1 On January 24, 2018, the ITC Protection (CBP) to assess, upon further This notice is not required by statute notified Commerce of its final instruction by Commerce, but is published as a service to the affirmative determination, pursuant to countervailing duties on unliquidated international trading community. section 705(d) of the Act, that an entries of cold-drawn mechanical tubing Dated: January 26, 2018. industry in the United States is from China and India entered, or materially injured within the meaning withdrawn from warehouse, for James Maeder, of section 705(b)(1)(A)(i) of the Act, by consumption on or after September 25, Senior Director performing the duties of reason of subsidized imports of cold- 2017, the date of publication of the Deputy Assistant Secretary for Antidumping drawn mechanical tubing from China 4 and Countervailing Duty Operations. Preliminary Determinations, but will and India.2 Further, the ITC determined not include entries occurring after the [FR Doc. 2018–02003 Filed 1–31–18; 8:45 am] that critical circumstances do not exist expiration of the provisional measures BILLING CODE 3510–DS–P with respect to imports of cold-drawn period and before publication in the mechanical tubing from China. Federal Register of the ITC’s final injury DEPARTMENT OF COMMERCE Scope of the Orders determination. The product covered by these orders Suspension of Liquidation International Trade Administration is cold-drawn mechanical tubing from In accordance with section 706 of the [C–570–059, C–533–874] China and India. For a complete Act, Commerce will instruct CBP to reinstitute the suspension of liquidation Certain Cold-Drawn Mechanical Tubing 1 See Countervailing Duty Investigation of Cold- on all entries of subject merchandise of Carbon and Alloy Steel From the Drawn Mechanical Tubing of Carbon and Alloy from China and India, applicable the People’s Republic of China and India: Steel from the People’s Republic of China: Final Affirmative Determination, and Final Affirmative Countervailing Duty Orders Determination of Critical Circumstances, in Part, 82 3 See ITC Notification Letter. FR 58175 (December 11, 2017) (China Final 4 AGENCY: See Certain Cold-Drawn Mechanical Tubing of Enforcement and Compliance, Determination); and Certain Cold-Drawn Carbon and Alloy Steel from the People’s Republic International Trade Administration, Mechanical Tubing of Carbon and Alloy Steel from of China: Preliminary Affirmative Countervailing Department of Commerce. India: Final Affirmative Countervailing Duty Duty Determination, 82 FR 44562 (September 25, SUMMARY: Based on affirmative final Determination, 82 FR 58172 (December 11, 2017). 2017); see also Certain Cold-Drawn Mechanical 2 See letter from the ITC concerning imports of Tubing of Carbon and Alloy Steel from India: determinations by the Department of cold-drawn mechanical tubing from China and Preliminary Affirmative Countervailing Duty Commerce (Commerce) and the India (Investigation Nos. 701–TA–576–577 (Final)), Investigation, 82 FR 44558 (September 25, 2017) International Trade Commission (ITC), dated January 24, 2018 (ITC Notification Letter). (collectively, Preliminary Determinations).

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date of publication of the ITC’s notice of 25, 2017 (i.e., the date of publication of (3) Aerospace Material Specification (AMS) final affirmative injury determination in the Preliminary Determination). AMS T–6736 (AMS 6736), AMS 6371, AMS the Federal Register, and to assess, 5050, AMS 5075, AMS 5062, AMS 6360, Notification to Interested Parties AMS 6361, AMS 6362, AMS 6371, AMS upon further instruction by Commerce 6372, AMS 6374, AMS 6381, AMS 6415; pursuant to section 706(a)(1) of the Act, This notice constitutes the countervailing duty orders with respect (4) United States Military Standards (MIL) countervailing duties for each entry of MIL–T–5066 and MIL–T–6736; the subject merchandise in an amount to cold-drawn mechanical tubing from (5) foreign standards equivalent to one of based on the net countervailable China and India pursuant to section the previously listed ASTM, ASME, SAE, subsidy rates for the subject 706(a) of the Act. Interested parties can AMS or MIL specifications including but not merchandise. We will also instruct CBP find a list of countervailing duty orders limited to: at http://enforcement.trade.gov/stats/ (a) German Institute for Standardization to require cash deposits for each entry (DIN) specifications DIN 2391–2, DIN 2393– of subject merchandise as indicated iastats1.html. These orders are issued and published 2, DIN 2394–2); below. These instructions suspending in accordance with section 706(a) and (b) European Standards (EN) EN 10305–1, liquidation will remain in effect until EN 10305–2, EN 10305–4, EN 10305–6 and 19 CFR 351.211(b). further notice. The all-others rate European national variations on those applies to all producers or exporters not Dated: January 26, 2018. standards (e.g., British Standard (BS EN), specifically listed, as appropriate. P. Lee Smith, Irish Standard (IS EN) and German Standard Deputy Assistant Secretary for Policy and (DIN EN) variations, etc.); Negotiations. (c) Japanese Industrial Standard (JIS) JIS G Exporter/Producer from Subsidy rate 3441 and JIS G 3445; and China (Percent) Appendix (6) proprietary standards that are based on one of the above-listed standards. Jiangsu Hongyi Steel Pipe Scope of the Orders The subject cold-drawn mechanical tubing Co., Ltd 5 ...... 21.41 The scope of these orders covers cold- may also be dual or multiple certified to Zhangjiagang Huacheng Im- drawn mechanical tubing of carbon and alloy more than one standard. Pipe that is multiple 6 port & Export Co., Ltd ..... 18.27 steel (cold-drawn mechanical tubing) of certified as cold-drawn mechanical tubing All-Others ...... 19.84 circular cross-section, 304.8 mm or more in and to other specifications not covered by length, in actual outside diameters less than this scope, is also covered by the scope of Exporter/Producer from India Subsidy rate 331mm, and regardless of wall thickness, these orders when it meets the physical (Percent) surface finish, end finish or industry description set forth above. specification. The subject cold-drawn Steel products included in the scope of Goodluck India Limited ...... 8.02 mechanical tubing is a tubular product with these orders are products in which: (1) Iron Tube Investments of India a circular cross-sectional shape that has been predominates, by weight, over each of the Limited ...... 42.60 cold-drawn or otherwise cold-finished after other contained elements; and (2) the carbon All-Others ...... 22.40 the initial tube formation in a manner that content is 2 percent or less by weight. involves a change in the diameter or wall For purposes of this scope, the place of Critical Circumstances thickness of the tubing, or both. The subject cold-drawing determines the country of cold-drawn mechanical tubing may be origin of the subject merchandise. Subject With regard to the ITC’s negative produced from either welded (e.g., electric merchandise that is subject to minor working resistance welded, continuous welded, etc.) in a third country that occurs after drawing critical circumstances determination on or seamless (e.g., pierced, pilgered or in one of the subject countries including, but imports of cold-drawn mechanical extruded, etc.) carbon or alloy steel tubular not limited to, heat treatment, cutting to tubing from China, we will instruct CBP products. It may also be heat treated after length, straightening, nondestructive testing, to lift suspension and to refund any cold working. Such heat treatments may include, but are not limited to, annealing, deburring or chamfering, remains within the cash deposits made to secure the scope of these orders. payment of estimated countervailing normalizing, quenching and tempering, stress relieving or finish annealing. Typical cold- All products that meet the written physical duties with respect to entries of the drawing methods for subject merchandise description are within the scope of these subject merchandise entered, or include, but are not limited to, drawing over orders unless specifically excluded or withdrawn from warehouse, for mandrel, rod drawing, plug drawing, sink covered by the scope of an existing order. consumption on or after June 27, 2017 drawing and similar processes that involve Merchandise that meets the physical (i.e., 90 days prior to the date of the reducing the outside diameter of the tubing description of cold-drawn mechanical tubing with a die or similar device, whether or not above is within the scope of the orders even publication of the Preliminary if it is also dual or multiple certified to an Determination), but before September controlling the inside diameter of the tubing with an internal support device such as a otherwise excluded specification listed mandrel, rod, plug or similar device. Other below. The following products are outside of, 5 In China Final Determination, Commerce cold-finishing operations that may be used to and/or specifically excluded from, the scope continued to find the following companies to be produce subject merchandise include cold- of these orders: cross-owned with Jiangsu Hongyi Steel Pipe Co., rolling and cold-sizing the tubing. (1) Cold-drawn stainless steel tubing, Ltd.: Hongren Precision Pipe Manufacturing Co., Subject cold-drawn mechanical tubing is containing 10.5 percent or more of chromium Ltd and Changzhou Kemeng Mechanical Equipment typically certified to meet industry by weight and not more than 1.2 percent of Co., Ltd. carbon by weight; 6 specifications for cold-drawn tubing See Cold-Drawn Mechanical Tubing of Carbon (2) products certified to one or more of the and Alloy Steel from the People’s Republic of including but not limited to: China: Notice of Correction to Final Affirmative (1) American Society for Testing and ASTM, ASME or American Petroleum Countervailing Duty Determination of Critical Materials (ASTM) or American Society of Institute (API) specifications listed below: Circumstances, In Part, 83 FR 351 (January 3, 2018) Mechanical Engineers (ASME) specifications • ASTM A–53; (China Correction Notice). In China Correction ASTM A–512, ASTM A–513 Type 3 (ASME • ASTM A–106; Notice, Commerce clarified the names of the SA513 Type 3), ASTM A–513 Type 4 (ASME • ASTM A–179 (ASME SA 179); companies it found to be cross-owned with SA513 Type 4), ASTM A–513 Type 5 (ASME • ASTM A–192 (ASME SA 192); Zhangjiagang Huacheng Import & Export Co., Ltd.: SA513 Type 5), ASTM A–513 Type 6 (ASME • ASTM A–209 (ASME SA 209); Jiangsu Huacheng Industry Pipe Making • ASTM A–210 (ASME SA 210); Corporation, Zhangjiagang Salem Fine Tubing Co., SA513 Type 6), ASTM A–519 (cold-finished); (2) SAE International (Society of • ASTM A–213 (ASME SA 213); Ltd., Zhangjiagang Huacheng Investment Holding • Co., Ltd., Zhangjiagang HZB Special Material Automotive Engineers) specifications SAE ASTM A–334 (ASME SA 334); Technology Co., Ltd. and Zhangjiagang Huacheng J524, SAE J525, SAE J2833, SAE J2614, SAE • ASTM A–423 (ASME SA 423); Special Materials Corporation. J2467, SAE J2435, SAE J2613; • ASTM A–498;

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• ASTM A–496 (ASME SA 496); discussed below refer to the number of Otherwise, Commerce will not collapse • ASTM A–199; calendar days from the applicable companies for purposes of respondent • ASTM A–500; • starting date. selection. Parties are requested to (a) ASTM A–556; identify which companies subject to • ASTM A–565; Respondent Selection • API 5L; and review previously were collapsed, and • API 5CT In the event Commerce limits the (b) provide a citation to the proceeding except that any cold-drawn tubing product number of respondents for individual in which they were collapsed. Further, certified to one of the above excluded examination for administrative reviews if companies are requested to complete specifications will not be excluded from the initiated pursuant to requests made for a Quantity and Value Questionnaire for scope if it is also dual- or multiple-certified the orders identified below, Commerce purposes of respondent selection, in to any other specification that otherwise intends to select respondents based on general each company must report would fall within the scope of these orders. U.S. Customs and Border Protection The products subject to the orders are volume and value data separately for currently classified in the Harmonized Tariff (CBP) data for U.S. imports during the itself. Parties should not include data Schedule of the United States (HTSUS) under period of review. We intend to release for any other party, even if they believe item numbers: 7304.31.3000, 7304.31.6050, the CBP data under Administrative they should be treated as a single entity 7304.51.1000, 7304.51.5005, 7304.51.5060, Protective Order (APO) to all parties with that other party. If a company was 7306.30.5015, 7306.30.5020, 7306.50.5030. having an APO within five days of collapsed with another company or Subject merchandise may also enter under publication of the initiation notice and companies in the most recently numbers 7306.30.1000 and 7306.50.1000. to make our decision regarding The HTSUS subheadings above are provided completed segment of a proceeding for convenience and customs purposes only. respondent selection within 21 days of where Commerce considered collapsing The written description of the scope of the publication of the initiation Federal that entity, complete quantity and value orders is dispositive. Register notice. Therefore, we data for that collapsed entity must be [FR Doc. 2018–02045 Filed 1–31–18; 8:45 am] encourage all parties interested in submitted. BILLING CODE 3510–DS–P commenting on respondent selection to submit their APO applications on the Deadline for Withdrawal of Request for date of publication of the initiation Administrative Review DEPARTMENT OF COMMERCE notice, or as soon thereafter as possible. Pursuant to 19 CFR 351.213(d)(1), a Commerce invites comments regarding party that requests a review may International Trade Administration the CBP data and respondent selection withdraw that request within 90 days of within five days of placement of the the date of publication of the notice of Antidumping or Countervailing Duty CBP data on the record of the review. Order, Finding, or Suspended initiation of the requested review. The In the event Commerce decides it is regulation provides that Commerce may Investigation; Opportunity To Request necessary to limit individual Administrative Review extend this time if it is reasonable to do examination of respondents and so. In order to provide parties additional AGENCY: Enforcement and Compliance, conduct respondent selection under certainty with respect to when International Trade Administration, section 777A(c)(2) of the Act: Commerce will exercise its discretion to Department of Commerce. In general, Commerce finds that extend this 90-day deadline, interested FOR FURTHER INFORMATION CONTACT: determinations concerning whether parties are advised that, with regard to Brenda E. Brown, Office of AD/CVD particular companies should be reviews requested on the basis of Operations, Customs Liaison Unit, ‘‘collapsed’’ (i.e., treated as a single anniversary months on or after February Enforcement and Compliance, entity for purposes of calculating 2018, Commerce does not intend to International Trade Administration, antidumping duty rates) require a extend the 90-day deadline unless the U.S. Department of Commerce, 1401 substantial amount of detailed requestor demonstrates that an Constitution Avenue NW, Washington, information and analysis, which often extraordinary circumstance prevented it DC 20230, telephone: (202) 482–4735. require follow-up questions and from submitting a timely withdrawal analysis. Accordingly, Commerce will Background request. Determinations by Commerce to not conduct collapsing analyses at the extend the 90-day deadline will be Each year during the anniversary respondent selection phase of a review made on a case-by-case basis. month of the publication of an and will not collapse companies at the antidumping or countervailing duty respondent selection phase unless there Commerce is providing this notice on order, finding, or suspended has been a determination to collapse its website, as well as in its investigation, an interested party, as certain companies in a previous ‘‘Opportunity to Request Administrative defined in section 771(9) of the Tariff segment of this antidumping proceeding Review’’ notices, so that interested Act of 1930, as amended (the Act), may (i.e., investigation, administrative parties will be aware of the manner in request, in accordance with 19 CFR review, new shipper review or changed which Commerce intends to exercise its 351.213, that the Department of circumstances review). For any discretion in the future. Commerce (Commerce) conduct an company subject to a review, if Opportunity to Request a Review: Not administrative review of that Commerce determined, or continued to later than the last day of February antidumping or countervailing duty treat, that company as collapsed with 2018,1 interested parties may request order, finding, or suspended others, Commerce will assume that such administrative review of the following investigation. companies continue to operate in the orders, findings, or suspended All deadlines for the submission of same manner and will collapse them for investigations, with anniversary dates in comments or actions by Commerce respondent selection purposes. February for the following periods:

1 Or the next business day, if the deadline falls on a weekend, federal holiday or any other day when the Department is closed.

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Period of review

Antidumping Duty Proceedings Brazil: Stainless Steel Bar, A–351–835 ...... 2/1/17–1/31/18 Carbon and Alloy Steel Cut-to-Length Plate, A–351–847 ...... 2/1/17–1/31/18 France: Uranium, A–427–818 ...... 2/1/17–1/31/18 India: Certain Cut-To-Length Carbon-Quality Steel Plate, A–533–817 ...... 2/1/17–1/31/18 Certain Preserved Mushrooms, A–533–813 ...... 2/1/17–1/31/18 Frozen Warmwater Shrimp, A–533–840 ...... 2/1/17–1/31/18 Stainless Steel Bar, A–533–810 ...... 2/1/17–1/31/18 Indonesia: Certain Cut-To-Length Carbon-Quality Steel Plate, A–560–805 ...... 2/1/17–1/31/18 Certain Preserved Mushrooms, A–560–802 ...... 2/1/17–1/31/18 Italy: Stainless Steel Butt-Weld Pipe Fittings, A–475–828 ...... 2/1/17–1/31/18 Japan: Carbon Steel Butt-Weld Pipe Fittings, A–588–602 ...... 2/1/17–1/31/18 Stainless Steel Bar, A–588–833 ...... 2/1/17–1/31/18 Malaysia: Stainless Steel Butt-Weld Pipe Fittings, A–557–809 ...... 2/1/17–1/31/18 Mexico: Large Residential Washers, A–201–842 ...... 2/1/17–1/31/18 Philippines: Stainless Steel Butt-Weld Pipe Fittings, A–565–801 ...... 2/1/17–1/31/18 Republic of Korea: Certain Cut-To-Length Carbon-Quality Steel Plate, A–580–836 ...... 2/1/17–1/31/18 Large Residential Washers, A–580–868 ...... 2/1/17–1/31/18 Socialist Republic of Vietnam: Frozen Warmwater Shrimp, A–552–802 ...... 2/1/17–1/31/18 Steel Wire Garment Hangers, A–552–812 ...... 2/1/17–1/31/18 Utility Scale Wind Towers, A–552–814 ...... 2/1/17–1/31/18 South Africa: Carbon and Alloy Steel Cut-To-Length Plate, A–791–822 ...... 2/1/17–1/31/18 Taiwan: Crystalline Silicon Photovoltaic Products, A–583–853 ...... 2/1/17–1/31/18 Thailand: Frozen Warmwater Shrimp, A–549–822 ...... 2/1/17–1/31/18 The People’s Republic of China: Certain Preserved Mushrooms, A–570–851 ...... 2/1/17–1/31/18 Crystalline Silicon Photovoltaic, A–570–010 ...... 2/1/17–1/31/18 Frozen Warmwater Shrimp, A–570–893 ...... 2/1/17–1/31/18 Heavy Forged Hand Tools, With or Without Handles, A–570–803 ...... 2/1/17–1/31/18 Large Residential Washers, A–570–033 ...... 7/26/16–1/31/18 Small Diameter Graphite Electrodes, A–570–929 ...... 2/1/17–1/31/18 Uncovered Innerspring Units, A–570–928 ...... 2/1/17–1/31/18 Utility Scale Wind Towers, A–570–981 ...... 2/1/17–1/31/18 Turkey: Carbon and Alloy Steel Cut-To-Length Plate, A–489–828 ...... 9/22/16–1/31/18 Countervailing Duty Proceedings India: Certain Cut-To-Length Carbon-Quality Steel Plate, C–533–818 ...... 1/1/17–12/31/17 Prestressed Concrete Steel Wire Strand, C–533–829 ...... 1/1/17–12/31/17 Indonesia: Certain Cut-To-Length Carbon-Quality Steel Plate, C–560–806 ...... 1/1/17–12/31/17 Republic of Korea: Certain Cut-To-Length Carbon-Quality Steel Plate, C–580–837 ...... 1/1/17–12/31/17 Large Residential Washers, C–580–869 ...... 1/1/17–12/31/17 Socialist Republic of Vietnam: Steel Wire Garment Hangers, C–552–813 ...... 1/1/17–12/31/17 The People’s Republic of China: Crystalline Silicon Photovoltaic Products, C–570–011 ...... 1/1/17–12/31/17 Utility Scale Wind Towers, C–570–982 ...... 1/1/17–12/31/17 Suspension Agreements None.

In accordance with 19 CFR interested party or an interested party specifically, on an order-by-order basis, 351.213(b), an interested party as described in section 771(9)(B) of the Act which exporter(s) the request is defined by section 771(9) of the Act may must state why it desires the Secretary intended to cover. request in writing that the Secretary to review those particular producers or Note that, for any party Commerce conduct an administrative review. For exporters. If the interested party intends was unable to locate in prior segments, both antidumping and countervailing for the Secretary to review sales of Commerce will not accept a request for duty reviews, the interested party must merchandise by an exporter (or a an administrative review of that party specify the individual producers or producer if that producer also exports absent new information as to the party’s location. Moreover, if the interested exporters covered by an antidumping merchandise from other suppliers) party who files a request for review is finding or an antidumping or which was produced in more than one unable to locate the producer or countervailing duty order or suspension country of origin and each country of exporter for which it requested the agreement for which it is requesting a origin is subject to a separate order, then review, the interested party must review. In addition, a domestic the interested party must state provide an explanation of the attempts

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it made to locate the producer or Countervailing Duty Centralized SUMMARY: In accordance with the Tariff exporter at the same time it files its Electronic Service System (ACCESS) on Act of 1930, as amended (the Act), the request for review, in order for the Enforcement and Compliance’s ACCESS Department of Commerce (Commerce) is Secretary to determine if the interested website at http://access.trade.gov.5 automatically initiating the five-year party’s attempts were reasonable, Further, in accordance with 19 CFR reviews (Sunset Reviews) of the pursuant to 19 CFR 351.303(f)(3)(ii). 351.303(f)(l)(i), a copy of each request antidumping and countervailing duty As explained in Antidumping and must be served on the petitioner and (AD/CVD) order(s) listed below. The Countervailing Duty Proceedings: each exporter or producer specified in International Trade Commission (the Assessment of Antidumping Duties, 68 the request. Commission) is publishing concurrently FR 23954 (May 6, 2003), and Non- Commerce will publish in the Federal with this notice its notice of Institution Market Economy Antidumping Register a notice of ‘‘Initiation of Proceedings: Assessment of Administrative Review of Antidumping of Five-Year Reviews which covers the Antidumping Duties, 76 FR 65694 or Countervailing Duty Order, Finding, same order(s). (October 24, 2011), Commerce clarified or Suspended Investigation’’ for DATES: Applicable (February 1, 2018). its practice with respect to the requests received by the last day of collection of final antidumping duties February 2018. If Commerce does not FOR FURTHER INFORMATION CONTACT: on imports of merchandise where receive, by the last day of February Commerce official identified in the intermediate firms are involved. The 2018, a request for review of entries Initiation of Review section below at public should be aware of this covered by an order, finding, or AD/CVD Operations, Enforcement and clarification in determining whether to suspended investigation listed in this Compliance, International Trade request an administrative review of notice and for the period identified Administration, U.S. Department of merchandise subject to antidumping above, Commerce will instruct CBP to Commerce, 1401 Constitution Avenue findings and orders.2 assess antidumping or countervailing NW, Washington, DC 20230. For Commerce no longer considers the duties on those entries at a rate equal to information from the Commission non-market economy (NME) entity as an the cash deposit of estimated contact Mary Messer, Office of exporter conditionally subject to an antidumping or countervailing duties Investigations, U.S. International Trade antidumping duty administrative required on those entries at the time of Commission at (202) 205–3193. reviews.3 Accordingly, the NME entity entry, or withdrawal from warehouse, will not be under review unless for consumption and to continue to SUPPLEMENTARY INFORMATION: Commerce specifically receives a collect the cash deposit previously Background request for, or self-initiates, a review of ordered. the NME entity.4 In administrative For the first administrative review of Commerce’s procedures for the reviews of antidumping duty orders on any order, there will be no assessment conduct of Sunset Reviews are set forth merchandise from NME countries where of antidumping or countervailing duties in its Procedures for Conducting Five- a review of the NME entity has not been on entries of subject merchandise Year (‘‘Sunset’’) Reviews of initiated, but where an individual entered, or withdrawn from warehouse, Antidumping and Countervailing Duty exporter for which a review was for consumption during the relevant Orders, 63 FR 13516 (March 20, 1998) provisional-measures ‘‘gap’’ period of initiated does not qualify for a separate and 70 FR 62061 (October 28, 2005). the order, if such a gap period is rate, Commerce will issue a final Guidance on methodological or decision indicating that the company in applicable to the period of review. This notice is not required by statute analytical issues relevant to Commerce’s question is part of the NME entity. conduct of Sunset Reviews is set forth However, in that situation, because no but is published as a service to the international trading community. in Antidumping Proceedings: review of the NME entity was Calculation of the Weighted-Average conducted, the NME entity’s entries Dated: January 26, 2018. Dumping Margin and Assessment Rate were not subject to the review and the James Maeder, in Certain Antidumping Duty rate for the NME entity is not subject to Senior Director performing the duties of Proceedings; Final Modification, 77 FR change as a result of that review Deputy Assistant Secretary for Antidumping (although the rate for the individual and Countervailing Duty Operations. 8101 (February 14, 2012). exporter may change as a function of the [FR Doc. 2018–02004 Filed 1–31–18; 8:45 am] Initiation of Review finding that the exporter is part of the BILLING CODE 3510–DS–P NME entity). Following initiation of an In accordance with section 751(c) of antidumping administrative review the Act and 19 CFR 351.218(c), we are when there is no review requested of the DEPARTMENT OF COMMERCE initiating Sunset Reviews of the NME entity, Commerce will instruct following antidumping and International Trade Administration CBP to liquidate entries for all exporters countervailing duty order(s): 1 not named in the initiation notice, Initiation of Five-Year (Sunset) including those that were suspended at Reviews the NME entity rate. All requests must be filed AGENCY: Enforcement and Compliance, electronically in Enforcement and International Trade Administration, Compliance’s Antidumping and Department of Commerce.

2 See also the Enforcement and Compliance 4 In accordance with 19 CFR 351.213(b)(1), parties Administrative Protective Order Procedures, 76 FR website at http://trade.gov/enforcement/. should specify that they are requesting a review of 39263 (July 6, 2011). 3 See Antidumping Proceedings: Announcement entries from exporters comprising the entity, and to 1 In addition, we note that in the sunset initiation of Change in Department Practice for Respondent the extent possible, include the names of such notice that published on January 2, 2018 (83 FR Selection in Antidumping Duty Proceedings and exporters in their request. 100) the Department inadvertently listed the Conditional Review of the Nonmarket Economy incorrect case number for Utility Scale Wind 5 See Antidumping and Countervailing Duty Entity in NME Antidumping Duty Proceedings, 78 Towers from Vietnam. The correct case number is FR 65963 (November 4, 2013). Proceedings: Electronic Filing Procedures; A–552–814.

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

A–570–904 ...... 731–TA–1103 China ...... Activated Carbon, (2nd Re- Matthew Renkey, (202) view). 482–2312. A–570–866 ...... 731–TA–921 China ...... Folding Gift Boxes, (3rd Re- Robert James, (202) 482– view). 0649. A–201–820 ...... 731–TA–747 Mexico ...... Fresh Tomatoes, (4th Re- Matthew Renkey, (202) view), (Suspension Agree- 482–2312. ment).

Filing Information segments. To the extent that other participate are set forth at 19 CFR As a courtesy, we are making regulations govern the submission of 351.218(d)(1)(ii). In accordance with information related to sunset factual information in a segment (such Commerce’s regulations, if we do not proceedings, including copies of the as 19 CFR 351.218), these time limits receive a notice of intent to participate pertinent statute and Commerces’s will continue to be applied. Parties are from at least one domestic interested regulations, Commerce’s schedule for also advised to review the final rule party by the 15-day deadline, Commerce Sunset Reviews, a listing of past concerning the extension of time limits will automatically revoke the order revocations and continuations, and for submissions in AD/CVD without further review.7 proceedings, available at http:// current service lists, available to the If we receive an order-specific notice public on Commerce’s website at the enforcement.trade.gov/frn/2013/ 1309frn/2013-22853.txt, prior to of intent to participate from a domestic following address: http:// interested party, Commerce’s enforcement.trade.gov/sunset/. All submitting factual information in these 6 regulations provide that all parties submissions in these Sunset Reviews segments. wishing to participate in a Sunset must be filed in accordance with Letters of Appearance and Review must file complete substantive Commerce’s regulations regarding Administrative Protective Orders format, translation, and service of responses not later than 30 days after documents. These rules, including Pursuant to 19 CFR 351.103(d), the date of publication in the Federal electronic filing requirements via Commerce will maintain and make Register of this notice of initiation. The Enforcement and Compliance’s available a public service list for these required contents of a substantive Antidumping and Countervailing Duty proceedings. Parties wishing to response, on an order-specific basis, are Centralized Electronic Service System participate in any of these five-year set forth at 19 CFR 351.218(d)(3). Note (ACCESS), can be found at 19 CFR reviews must file letters of appearance that certain information requirements 351.303.2 as discussed at 19 CFR 351.103(d)). To differ for respondent and domestic Any party submitting factual facilitate the timely preparation of the parties. Also, note that the Department’s information in an AD/CVD proceeding public service list, it is requested that information requirements are distinct must certify to the accuracy and those seeking recognition as interested from the Commission’s information completeness of that information.3 parties to a proceeding submit an entry requirements. Consult Commerce’s Parties must use the certification of appearance within 10 days of the regulations for information regarding 4 publication of the Notice of Initiation. formats provided in 19 CFR 351.303(g). Commerce’s conduct of Sunset Reviews. Because deadlines in Sunset Reviews Commerce intends to reject factual Consult Commerce’s regulations at 19 can be very short, we urge interested submissions if the submitting party does CFR part 351 for definitions of terms parties who want access to proprietary not comply with applicable revised and for other general information certification requirements. information under administrative protective order (APO) to file an APO concerning antidumping and On April 10, 2013, Commerce countervailing duty proceedings at modified two regulations related to AD/ application immediately following Commerce. CVD proceedings: The definition of publication in the Federal Register of factual information (19 CFR this notice of initiation. Commerce’s This notice of initiation is being 351.102(b)(21)), and the time limits for regulations on submission of proprietary published in accordance with section the submission of factual information information and eligibility to receive 751(c) of the Act and 19 CFR 351.218(c). 5 access to business proprietary (19 CFR 351.301). Parties are advised to Dated: January 26, 2018. review the final rule, available at http:// information under APO can be found at James Maeder, enforcement.trade.gov/frn/2013/ 19 CFR 351.304–306. Senior Director performing the duties of 1304frn/2013-08227.txt, prior to Information Required From Interested submitting factual information in these Deputy Assistant Secretary for Antidumping Parties and Countervailing Duty Operations. [FR Doc. 2018–02005 Filed 1–31–18; 8:45 am] 2 See also Antidumping and Countervailing Duty Domestic interested parties, as Proceedings: Electronic Filing Procedures; defined in section 771(9)(C),(D),(E),(F), BILLING CODE 3510–DS–P Administrative Protective Order Procedures, 76 FR and (G) of the Act and 19 CFR 39263 (July 6, 2011). 351.102(b), wishing to participate in a 3 See section 782(b) of the Act. Sunset Review must respond not later 4 See also Certification of Factual Information to Import Administration During Antidumping and than 15 days after the date of Countervailing Duty Proceedings, 78 FR 42678 (July publication in the Federal Register of 17, 2013) (Final Rule). Answers to frequently asked this notice of initiation by filing a notice questions regarding the Final Rule are available at of intent to participate. The required http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. contents of the notice of intent to 5 See Definition of Factual Information and Time Limits for Submission of Factual Information: Final 6 See Extension of Time Limits, 78 FR 57790 Rule, 78 FR 21246 (April 10, 2013). (September 20, 2013). 7 See 19 CFR 351.218(d)(1)(iii).

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DEPARTMENT OF COMMERCE Assessment and Review (SEDAR) aids should be directed to the SAFMC process, a multi-step method for office (see ADDRESSES) at least 5 National Oceanic and Atmospheric determining the status of fish stocks in business days prior to the meeting. Administration the Southeast Region. SEDAR is Note: The times and sequence specified in RIN 0648–XF934 typically a three-step process including: this agenda are subject to change. (1) Data Workshop; (2) Assessment Fisheries of the South Atlantic; Process utilizing workshop and/or Authority: 16 U.S.C. 1801 et seq. Southeast Data, Assessment, and webinars; and (3) Review Workshop. Dated: January 26, 2018. Review (SEDAR); Stock ID Data The product of the Data Workshop is a Tracey L. Thompson, data report which compiles and Scoping Webinar for Atlantic Cobia Acting Deputy Director, Office of Sustainable (Rachycentron canadum) evaluates potential datasets and Fisheries, National Marine Fisheries Service. recommends which datasets are AGENCY: National Marine Fisheries appropriate for assessment analyses. [FR Doc. 2018–01940 Filed 1–31–18; 8:45 am] Service (NMFS), National Oceanic and The product of the Assessment Process BILLING CODE 3510–22–P Atmospheric Administration (NOAA), is a stock assessment report which Commerce. describes the fisheries, evaluates the ACTION: Notice of rescheduled SEDAR status of the stock, estimates biological COMMODITY FUTURES TRADING 58 Cobia Stock Identification Data benchmarks, projects future population COMMISSION Scoping Webinar. conditions, and recommends research Technology Advisory Committee and monitoring needs. The assessment SUMMARY: The SEDAR 58 Cobia Stock is independently peer reviewed at the AGENCY: Commodity Futures Trading Identification Data Scoping webinar Review Workshop. The product of the Commission. originally scheduled for January 22, Review Workshop is a Summary ACTION: Notice of meeting. 2018 had to be rescheduled due to the documenting panel opinions regarding Federal government shutdown. The the strengths and weaknesses of the SUMMARY: The Commodity Futures SEDAR 58 assessment(s) of the Atlantic stock assessment and input data. Trading Commission (CFTC or stock(s) of cobia will consist of a series Participants for SEDAR Workshops are Commission) announces that on of workshops and webinars: Stock ID appointed by the Gulf of Mexico, South Wednesday, February 14, 2018, from Workshop; Stock ID Review Workshop; Atlantic, and Caribbean Fishery 10:00 a.m. to 4:15 p.m., the CFTC’s Stock ID Joint Cooperator Technical Management Councils and NOAA Technology Advisory Committee (TAC) Review; Data Workshop; Assessment Fisheries Southeast Regional Office, will hold a rescheduled public meeting Workshop and/or Webinars; and a Highly Migratory Species Management at the CFTC’s Washington, DC Review Workshop. See SUPPLEMENTARY Division, and Southeast Fisheries headquarters. The TAC meeting, INFORMATION. Science Center. Participants include: previously scheduled for January 23, DATES: The rescheduled SEDAR 58 Data collectors and database managers; 2018, from 10:00 a.m. to 4:00 p.m., was Stock ID Data Scoping Webinar will be stock assessment scientists, biologists, canceled and is now being rescheduled held on February 5, 2018, from 11 a.m. and researchers; constituency with less than fifteen days’ notice due until 1 p.m. representatives including fishermen, to the lapse in appropriations that ADDRESSES: environmentalists, and non- closed the Federal Government. At the Meeting address: The meeting will be governmental organizations (NGOs); rescheduled meeting, the TAC will: (1) held via webinar. The webinar is open international experts; and staff of Discuss the scope, plan, and approach to members of the public. Those Councils, Commissions, and state and for the Committee’s efforts in 2018; (2) interested in participating should federal agencies. explore timely topics and issues contact Julia Byrd at SEDAR (see FOR The items of discussion at the Stock involving financial technology in CFTC FURTHER INFORMATION CONTACT) to ID Data Scoping Webinar are as follows: regulated markets, potentially including request an invitation providing webinar 1. Participants will review the SEDAR blockchain/DLT, data standardization access information. Please request 58 Cobia Stock ID process. and analytics, algorithmic trading, webinar invitations at least 24 hours in 2. Participants will identify potential virtual currencies, cybersecurity, and advance of each webinar. data sources and discuss data needs and RegTech; and (3) identify work streams SEDAR address: South Atlantic treatments in order to prepare for the and/or subcommittee groups that can Fishery Management Council, 4055 Stock ID Workshop. help generate actionable Faber Place Drive, Suite 201, North Although non-emergency issues not recommendations to the Commission on Charleston, SC 29405; contained in this agenda may come select issues. www.sedarweb.org. before this group for discussion, those issues may not be the subject of formal DATES: The meeting will be held on FOR FURTHER INFORMATION CONTACT: Julia action during this meeting. Action will Wednesday, February 14, 2018 from Byrd, SEDAR Coordinator, 4055 Faber be restricted to those issues specifically 10:00 a.m. to 4:15 p.m. Members of the Place Drive, Suite 201, North identified in this notice and any issues public who wish to submit written Charleston, SC 29405; phone: (843) 571– arising after publication of this notice statements in connection with the 4366; email: [email protected]. that require emergency action under meeting should submit them by SUPPLEMENTARY INFORMATION: The section 305(c) of the Magnuson-Stevens Wednesday, February 21, 2018. original notice published in the Federal Fishery Conservation and Management ADDRESSES: The meeting will take place Register on January 2, 2018 (83 FR 103). Act, provided the public has been in the Conference Center at the CFTC’s The Gulf of Mexico, South Atlantic, notified of the intent to take final action headquarters, Three Lafayette Centre, and Caribbean Fishery Management to address the emergency. 1155 21st Street NW, Washington, DC Councils, in conjunction with NOAA 20581. Written statements should be Fisheries and the Atlantic and Gulf Special Accommodations submitted by mail to: Commodity States Marine Fisheries Commissions, This meeting is accessible to people Futures Trading Commission, Three have implemented the Southeast Data, with disabilities. Requests for auxiliary Lafayette Centre, 1155 21st Street NW,

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Washington, DC 20581, attention: Office CORPORATION FOR NATIONAL AND Title of Collection: Day of Service of the Secretary, or by electronic mail to: COMMUNITY SERVICE Project Collection Tool. [email protected]. Please use the title OMB Control Number: 3045–0122. ‘‘Technology Advisory Committee’’ in Agency Information Collection Type of Review: Renewal. any written statement you submit. Any Activities; Submission to the Office of Respondents/Affected Public: Any statements submitted in connection Management and Budget for Review person or group organizing a service project in conjunction with a CNCS with the committee meeting will be and Approval; Comment Request; Application Package for the Day of initiative. made available to the public, including Service Project Collection Tool Total Estimated Number of Annual publication on the CFTC website, Respondents: 100,000. www.cftc.gov. AGENCY: Corporation for National and Total Estimated Annual Frequency: Community Service (CNCS). Six times annually. FOR FURTHER INFORMATION CONTACT: ACTION: Notice of information collection; Total Estimated Average Response Daniel Gorfine, TAC Designated Federal request for comment. Time per Response: Average is 10 Officer, Commodity Futures Trading minutes. Commission, Three Lafayette Centre, SUMMARY: In accordance with the Total Estimated Number of Annual 1155 21st Street NW, Washington, DC Paperwork Reduction Act of 1995, Burden Hours: 100,000 hours 20581, (202) 418–5625. CNCS is proposing to renew an Total Burden Cost (capital/startup): information collection for the Day of SUPPLEMENTARY INFORMATION: The None. Service Project Collection Tool. Total Burden Cost (operating/ meeting will be open to the public with DATES: Written comments must be maintenance): None. seating on a first-come, first-served submitted to the individual and office Abstract: Currently CNCS is soliciting basis. Members of the public may also listed in the ADDRESSES section by April comments concerning its proposed listen to the meeting by telephone by 2, 2018. renewal of Day of Service project calling a domestic toll-free telephone or ADDRESSES: You may submit comments, promotion tool. Individuals organizing a international toll or toll-free number to identified by the title of the information volunteer event will be able to register connect to a live, listen-only audio feed. collection activity, by any of the their projects. This group includes Call-in participants should be prepared following methods: national service grantees, corporations, to provide their first name, last name, (1) By mail sent to: Corporation for volunteer organizations, and and affiliation. National and Community Service, individuals. The Corporation wants to Domestic Toll Free: 1–866–844–9416. Attention David Sherman, 250 E Street help promote activities across the SW, Washington, DC 20525. country and also to be able to assess International Toll and Toll Free: Will (2) By hand delivery or by courier to impact of the Corporation’s initiatives. be posted on the CFTC’s website, http:// the CNCS mailroom at the mail address Information provided is purely www.cftc.gov, on the page for the given in paragraph (1) above, between voluntary and will not be used for any meeting, under Related Links. 9:00 a.m. and 4:00 p.m. Eastern Time, grant or funding support. Pass Code/Pin Code: 3599656. Monday through Friday, except federal Comments submitted in response to The meeting agenda may change to holidays. this notice will be summarized and/or (3) Electronically through included in the request for OMB accommodate other TAC priorities. For www.regulations.gov. approval. Comments are invited on: (a) agenda updates, please visit the TAC Individuals who use a Whether the collection of information is committee site at: http://www.cftc.gov/ telecommunications device for the deaf necessary for the proper performance of About/CFTCCommittees/Technology (TTY–TDD) may call 1–800–833–3722 _ the functions of the agency, including Advisory/tac meetings. between 8:00 a.m. and 8:00 p.m. Eastern whether the information shall have After the meeting, a transcript of the Time, Monday through Friday. practical utility; (b) the accuracy of the meeting will be published through a Comments submitted in response to agency’s estimate of the burden of the link on the CFTC’s website, http:// this notice may be made available to the collection of information; (c) ways to www.cftc.gov. All written submissions public through regulations.gov. For this enhance the quality, utility, and clarity provided to the CFTC in any form will reason, please do not include in your of the information to be collected; (d) also be published on the CFTC’s comments information of a confidential ways to minimize the burden of the website. Persons requiring special nature, such as sensitive personal collection of information on information or proprietary information. accommodations to attend the meeting respondents, including through the use If you send an email comment, your because of a disability should notify the of automated collection techniques or email address will be automatically contact person above. other forms of information technology; captured and included as part of the and (e) estimates of capital or start-up Authority: 5 U.S.C. app. 2 § 10(a)(2). comment that is placed in the public costs and costs of operation, Dated: January 29, 2018. docket and made available on the maintenance, and purchase of services internet. Please note that responses to Christopher J. Kirkpatrick, to provide information. Burden means this public comment request containing Secretary of the Commission. the total time, effort, or financial any routine notice about the resources expended by persons to [FR Doc. 2018–02026 Filed 1–31–18; 8:45 am] confidentiality of the communication generate, maintain, retain, disclose or BILLING CODE 6351–01–P will be treated as public comment that provide information to or for a federal may be made available to the public agency. This includes the time needed notwithstanding the inclusion of the to review instructions; to develop, routine notice. acquire, install and utilize technology FOR FURTHER INFORMATION CONTACT: and systems for the purpose of David Sherman, 202–606–6986, or by collecting, validating and verifying email at [email protected]. information, processing and SUPPLEMENTARY INFORMATION: maintaining information, and disclosing

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and providing information; to train and address of the executor or lawyer information collection should be personnel and to be able to respond to handling the estate. From the emailed to Ms. Jasmeet Seehra, DoD a collection of information, to search information obtained, DFAS submits a Desk Officer, at Oira_submission@ data sources, to complete and review claim against the estate for the amount omb.eop.gov. Please identify the the collection of information; and to due to the United States. proposed information collection by DoD transmit or otherwise disclose the Affected Public: State, local, or tribal Desk Officer and the Docket ID number information. All written comments will government. and title of the information collection. be available for public inspection on Frequency: On occasion. FOR FURTHER INFORMATION CONTACT: Fred regulations.gov. Respondent’s Obligation: Voluntary. Licari, 571–372–0493. OMB Desk Officer: Ms. Jasmeet SUPPLEMENTARY INFORMATION: Dated: January 29, 2018. Seehra. Marc Young, You may also submit comments and Title; Associated Form; and OMB Acting Chief of External Affairs. recommendations, identified by Docket Number: TRICARE Plus Enrollment Application and TRICARE Plus [FR Doc. 2018–02019 Filed 1–31–18; 8:45 am] ID number and title, by the following Disenrollment Request; DD Form 2853 BILLING CODE 6050–28–P method: • Federal eRulemaking Portal: http:// and DD Form 2854; OMB Control www.regulations.gov. Follow the Number 0720–0028. Type of Request: Reinstatement. DEPARTMENT OF DEFENSE instructions for submitting comments. Instructions: All submissions received Number of Respondents: 3,305. Responses per Respondent: 1. must include the agency name, Docket Office of the Secretary Annual Responses: 3305. ID number and title for this Federal [Docket ID: DOD–2013–OS–0128] Average Burden per Response: 7 Register document. The general policy minutes. Submission for OMB Review; for comments and other submissions Annual Burden Hours: 386. Comment Request from members of the public is to make Needs and Uses: The information these submissions available for public collection requirement is necessary for AGENCY: Defense Finance and viewing on the internet at http:// enrollment and disenrollment in the Accounting Service, DoD. www.regulations.gov as they are Department of Defense’s TRICARE Plus ACTION: 30-Day information collection received without change, including any Health Plan established in accordance notice. personal identifiers or contact with Title 10 U.S.C. 1099 (which calls information. for a healthcare enrollment system) and SUMMARY: The Department of Defense DOD Clearance Officer: Mr. Frederick 1086 (which authorizes TRICARE has submitted to OMB for clearance, the Licari. eligibility of Medicare Eligible Persons following proposal for collection of Written requests for copies of the and has resulted in the development of information under the provisions of the information collection proposal should a new enrollment option called Paperwork Reduction Act. be sent to Mr. Licari at WHS/ESD TRICARE Plus) and the Assistant DATES: Consideration will be given to all Directives Division, 4800 Mark Center Secretary of Defense for Health Affairs comments received by March 5, 2018. Drive, East Tower, Suite 03F09, Policy Memorandum to Establish the Alexandria, VA 22350–3100. ADDRESSES: Comments and TRICARE Plus Program, June 22, 2001. recommendations on the proposed Dated: January 29, 2018. The information collected hereby information collection should be Aaron Siegel, provides the TRICARE contractors with emailed to Ms. Jasmeet Seehra, DoD Alternate OSD Federal Register, Liaison necessary data to determine beneficiary Desk Officer, at Oira_submission@ Officer, Department of Defense. eligibility and to identify the selection omb.eop.gov. Please identify the [FR Doc. 2018–01970 Filed 1–31–18; 8:45 am] of a health care option. proposed information collection by DoD BILLING CODE 5001–06–P Affected Public: Individuals or Desk Officer and the Docket ID number households. and title of the information collection. Frequency: On occasion. Respondent’s Obligation: Required to FOR FURTHER INFORMATION CONTACT: Fred DEPARTMENT OF DEFENSE Obtain or Retain Benefits. Licari, 571–372–0493, or whs.mc- Office of the Secretary OMB Desk Officer: Ms. Jasmeet alex.esd.mbx.dd-dod-information- Seehra. [Docket ID: DOD–2016–HA–0119] [email protected]. You may also submit comments and SUPPLEMENTARY INFORMATION: Submission for OMB Review; recommendations, identified by Docket Title, Associated Form and OMB Comment Request ID number and title, by the following Number: Request for Information method: Regarding Deceased Debtor, DD Form AGENCY: Office of the Assistant • Federal eRulemaking Portal: http:// 2840; OMB Control Number 0730–0015. Secretary of Defense for Health Affairs, www.regulations.gov. Follow the Type of Request: Reinstatement. DoD. instructions for submitting comments. Number of Respondents: 300. ACTION: 30-Day information collection Instructions: All submissions received Responses per Respondent: 1. notice. must include the agency name, Docket Annual Responses: 300. ID number and title for this Federal Average Burden per Response: 20 SUMMARY: The Department of Defense Register document. The general policy minutes. has submitted to OMB for clearance, the for comments and other submissions Annual Burden Hours: 100 hours. following proposal for collection of from members of the public is to make Needs and Uses: The information information under the provisions of the these submissions available for public collection requirement is necessary to Paperwork Reduction Act. viewing on the internet at http:// obtain information on deceased debtors DATES: Consideration will be given to all www.regulations.gov as they are from probate courts. Probate courts comments received by March 5, 2018. received without change, including any review their records to see if an estate ADDRESSES: Comments and personal identifiers or contact was established. They provide the name recommendations on the proposed information.

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DOD Clearance Officer: Mr. Frederick application not meeting the EASIE Part such Tribes have any children in such Licari. I or Part II deadline will not be school, Indian organizations (IOs), and, Written requests for copies of the considered for funding. Failure to if appropriate, Indian students from information collection proposal should submit the required supplemental secondary schools. LEA applicants are be sent to Mr. Licari at WHS/ESD documentation, described under required to develop proposed projects Directives Division, 4800 Mark Center Content and Form of Application with the participation and written Drive, East Tower, Suite 03F09, Submission in section IV of this notice, approval of a parent committee whose Alexandria, VA 22350–3100. by the EASIE Part I or II deadline will membership includes parents and Dated: January 29, 2018. result in an incomplete application that family members of Indian children in will not be considered for funding. The the LEA’s schools; representatives of Aaron Siegel, Office of Indian Education (OIE) Indian Tribes on Indian lands located Alternate OSD Federal Register, Liaison recommends uploading the within 50 miles of any school that the Officer, Department of Defense. documentation at least two days prior to LEA will serve if such Tribes have any [FR Doc. 2018–01984 Filed 1–31–18; 8:45 am] each deadline date to ensure that any children in such school; teachers in the BILLING CODE 5001–06–P potential submission issues are resolved schools; and, if appropriate, Indian prior to the deadlines. students attending secondary schools of I. Funding Opportunity Description the LEA (section 6114(c)(4) of the DEPARTMENT OF EDUCATION ESEA). The majority of the parent Purpose of Program: The Indian committee members must be parents Application for New Awards; Indian Education Formula Grants to Local and family members of Indian children Education Formula Grants to Local Educational Agencies (Formula Grants) (section 6114(c)(4) of the ESEA). Educational Agencies program provides grants to support local Definitions: The following definition AGENCY: Office of Elementary and educational agencies (LEAs), Indian is from section 6112(d)(3) of the ESEA: Secondary Education, Department of Tribes and organizations, and other Indian community-based organization Education. eligible entities in developing (ICBO) means any organization that (1) elementary and secondary school is composed primarily of Indian ACTION: Notice. programs that serve Indian students. parents, family members and SUMMARY: The Department of Education The U.S. Department of Education community members, tribal government is issuing a notice inviting applications (Department) funds comprehensive educational officials, and tribal for new awards for fiscal year (FY) 2018 programs that are designed to meet the members, from a specific community; for Indian Education Formula Grants to unique cultural, language, and (2) assists in the social, cultural, and Local Educational Agencies, Catalog of educational needs of American Indian educational development of Indians in Federal Domestic Assistance (CFDA) and Alaska Native (AI/AN) students and such community; (3) meets the unique number 84.060A. ensure that all students meet cultural, language, and academic needs challenging State academic standards. DATES: of Indian students; and (4) demonstrates As authorized under section 6116 of Part I of Electronic Application organizational and administrative the Elementary and Secondary System for Indian Education (EASIE) capacity to manage the grant. Education Act of 1965 (ESEA), as Applications Available: February 5, Statutory Hiring Preference: amended by the Every Student Succeeds 2018. (a) Awards that are primarily for the Act (ESSA),1 the Secretary will, upon Deadline for Transmittal of EASIE benefit of Indians are subject to the receipt of an acceptable plan for the Part I: March 8, 2018. provisions of section 7(b) of the Indian Part II of EASIE Applications integration of education and related Self-Determination and Education Available: April 9, 2018. services, and in cooperation with other Assistance Act (25 U.S.C. 5307(b)). That Deadline for Transmittal of EASIE relevant Federal agencies, authorize the section requires that, to the greatest Part II: May 17, 2018. entity receiving the funds under this extent feasible, a grantee— program to consolidate all Federal funds (1) Give to Indians preferences and FOR FURTHER INFORMATION CONTACT: For that are to be used exclusively for opportunities for training and questions about the Formula Grants Indian students. Instructions for employment in connection with the program, contact Paulette Davis, U.S. submitting an integration of education administration of the grant; and Department of Education, 400 Maryland and related services plan are included (2) Give to IOs and to Indian-owned Avenue SW, Room 3W227, Washington, in the EASIE, which is described under economic enterprises, as defined in DC 20202–6335. Telephone: (202) 260– Application and Submission section 3 of the Indian Financing Act of 2840 or by email: paulette.davis@ Information in section IV of this notice. 1974 (25 U.S.C. 1452(e)), preference in ed.gov. For technical questions about Note: Under the Formula Grants the award of contracts in connection the EASIE application and uploading program, all applicants are required to with the administration of the grant. documentation, contact the EDFacts develop proposed projects in open (b) For purposes of this section, an Partner Support Center (PSC), consultation, including through public Indian is a member of any federally telephone: 877–457–3336 (877–HLP– recognized Indian Tribe. _ hearings held to provide a full EDEN) or by email at: eden [email protected]. opportunity to understand the program Program Authority: 20 U.S.C. 7421 et If you use a telecommunications and to offer recommendations regarding seq. device for the deaf (TDD) or a text the program (section 6114(c)(3)(C) of the Applicable Regulations: (a) The telephone (TTY), contact the Federal ESEA), with parents of Indian children Education Department General Relay Service (FRS), toll free, at 1–800– and teachers of Indian children, Administrative Regulations (EDGAR) in 877–0996 or by email at: federalrelay@ representatives of Indian Tribes on 34 CFR parts 75, 77, 81, 82, 84, 97, 98, sprint.com. Indian lands located within 50 miles of and 99. (b) The Office of Management SUPPLEMENTARY INFORMATION: any school that the LEA will serve if and Budget Guidelines to Agencies on Note: Applicants must meet the Government-wide Debarment and deadlines for both EASIE Part I and Part 1 All references to the ESEA refer to the ESEA, as Suspension (Nonprocurement) in 2 CFR II to be eligible to receive a grant. Any amended by the ESSA. part 180, as adopted and amended as

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regulations of the Department in 2 CFR in an accessible format (e.g., braille, Deadline for Transmittal of EASIE part 3485. (c) The Uniform large print, audiotape, or compact disc) Part II: May 17, 2018, 8:00:00 p.m., Administrative Requirements, Cost by contacting the EDFacts PSC listed Washington, DC time. Principles, and Audit Requirements for under FOR FURTHER INFORMATION Applications for grants under this Federal Awards in 2 CFR part 200, as CONTACT. program must be submitted adopted and amended as regulations of 2. Content and Form of Application electronically using EASIE located in the Department in 2 CFR part 3474. Submission: Requirements concerning the EDFacts System Portal. For information (including dates and times) II. Award Information the content of an application, together with the forms you must submit, are about how to submit your application Type of Award: Formula grants. located in the Getting Started page in electronically, or in paper format by Estimated Available Funds: The the EDFacts System Portal. mail or hand delivery if you qualify for Administration has requested a. Supplementary Documentation: an exception to the electronic $100,190,000 for Indian Education The EASIE application requires submission requirements, please refer to Formula Grants to LEAs for FY 2018. submission of the following Other Submission Requirements in The actual level of funding, if any, supplementary documentation in section IV of this notice. depends on final congressional action. electronic Portable Document Format We do not consider an application However, we are inviting applications to (PDF): that does not comply with the deadline allow enough time to complete the grant (i) In EASIE Part I, applicants that are requirements. process should Congress appropriate Tribes, IOs, or ICBOs must submit with Individuals with disabilities who funds for this program. need an accommodation or auxiliary aid Estimated Range of Awards: $4,000 to their application a document to verify their eligibility. Each applicant that is a in connection with the application $3,254,999. process should contact the person listed Estimated Average Size of Awards: Tribe, IO, or ICBO must use the appropriate ‘‘Applying in Lieu of the under FOR FURTHER INFORMATION $77,069. CONTACT. If the Department provides an Estimated Number of Awards: 1,300. LEA’’ agreement form no later than Note: The Department is not bound by March 8, 2018. The details of the accommodation or auxiliary aid to an any estimates in this notice. verification process, which are individual with a disability in Project Period: 12 months. necessary to meet the statutory connection with the application eligibility requirements for Tribes, IOs, process, the individual’s application III. Eligibility Information and ICBOs, are in the application remains subject to all other 1. Eligible Applicants: The following package. Applicants are required to use requirements and limitations in this entities are eligible under this program: the correct applicant type eligibility notice. Certain LEAs, including charter schools verification document, all of which are 4. Intergovernmental Review: This authorized as LEAs under State law, as available on the Getting Started page in program is not subject to Executive prescribed by section 6112(b) of the the EDFacts System Portal as Order 12372 and the regulations in 34 ESEA; certain schools funded by the downloadable documents. CFR part 79. Bureau of Indian Education of the U.S. (ii) In EASIE Part I, an applicant that 5. Funding Restrictions: Not more Department of the Interior (BIE), as is the lead applicant for a consortium than 5 percent of the funds provided to prescribed by section 6113(d) of the must upload a consortium agreement a grantee may be used for administrative ESEA; Indian Tribes and IOs under that meets the requirements of 34 CFR costs (section 6115(d) of the ESEA). We certain conditions, as prescribed by 75.128(b) no later than March 8, 2018. reference regulations outlining other section 6112(c) of the ESEA; and ICBOs, Applicants must use the consortium funding restrictions in the Applicable as prescribed by section 6112(d) of the agreement that is available on the Regulations section of this notice. 6. Data Universal Numbering System ESEA. Consortia of two or more LEAs, Getting Started page in the EDFacts Number, Taxpayer Identification Indian Tribes, IOs, and ICBOs are also System Portal as a downloadable Number, and System for Award eligible under certain circumstances, as document. Management: To do business with the prescribed by section 6112(a)(4) of the (iii) In EASIE Part II, for an applicant ESEA. Department of Education, you must— that is an LEA or a consortium of LEAs, a. Have a Data Universal Numbering 2. a. Cost Sharing or Matching: This the EASIE application requires the program does not require cost sharing or System (DUNS) number and a Taxpayer electronic PDF submission of the Indian Identification Number (TIN); matching. Parent Committee Approval (PCA) form b. Supplement-Not-Supplant: Section b. Register both your DUNS number no later than the deadline for transmittal 6114(c)(1) of the ESEA requires an LEA and TIN with the System for Award of EASIE Part II, which is May 17, 2018. to use these grant funds only to Management (SAM), the Government’s supplement the funds that, in the Applicants are encouraged to begin primary registrant database; absence of these Federal funds, such planning parent committee meetings c. Provide your DUNS number and agency would make available for early to ensure parent committee TIN on your application; and services described in this application, signatures are obtained before EASIE d. Maintain an active SAM and not to supplant such funds. Part II closes. The required form is registration with current information available on the Getting Started page in while your application is under review IV. Application and Submission the EDFacts System Portal. by the Department and, if you are Information 3. Submission Dates and Times: awarded a grant, during the project 1. How To Request an Application Part I of the Formula Grant EASIE period. Package: You can obtain a log-in and Applications Available: February 5, You can obtain a DUNS number from password for the electronic application 2018. Dun and Bradstreet at the following for grants under this program by Deadline for Transmittal of EASIE website: http://fedgov.dnb.com/ contacting the EDFacts PSC listed under Part I: March 8, 2018, 8:00:00 p.m., webform. A DUNS number can be FOR FURTHER INFORMATION CONTACT. Washington, DC time. created within one to two business days. Individuals with disabilities can Part II of the Formula Grant EASIE If you are a corporate entity, agency, obtain a copy of the application package Applications Available: April 9, 2018. institution, or organization, you can

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obtain a TIN from the Internal Revenue count totals. All applicants must submit coordination of services for AI/AN Service. If you are an individual, you a current Indian student count for FY students with those grant programs; can obtain a TIN from the Internal 2018. Applicants must use the Indian (4) Describe the professional Revenue Service or the Social Security Student Eligibility Certification Form development opportunities that will be Administration. If you need a new TIN, (ED 506 Form) to document eligible provided as part of your coordination of please allow two to five weeks for your Indian students; however, BIE schools services to ensure that teachers and TIN to become active. may use either the Indian School other school professionals who are new The SAM registration process can take Equalization Program (ISEP) count or to the Indian community are prepared to approximately seven business days, but the ED 506 Form count to verify their work with Indian children, and that all may take upwards of several weeks, Indian student counts. Applicants must teachers who will be involved in depending on the completeness and protect the privacy of all individual data programs assisted by this grant have accuracy of the data you enter into the collected and only report aggregated been properly trained to carry out such SAM database. Thus, if you think you data to the Secretary. programs; might want to apply for Federal Applicants that verify their Indian (5) Provide information on how the financial assistance under a program student count with the ED 506 Form State assessment data of all Indian administered by the Department, please must document their Indian student students (not just those served) are used. allow sufficient time to obtain and counts by completing the following: (1) Indicate how you plan to disseminate register your DUNS number and TIN. Each year, the applicant must verify information to the Indian community, We strongly recommend that you there is a valid ED 506 Form for each parent committee, and Indian Tribes register early. Indian child included in the count; (2) whose children are served by the LEA If you are currently registered with all ED 506 Forms included in the count and how assessment data from the SAM, you may not need to make any must be completed, signed, and dated previous school year (SY) were used, as changes. However, please make certain by the parent, and be on file; (3) the required by section 6114(6)(C) of the that the TIN associated with your DUNS applicant must maintain a copy of the ESEA; (6) Indicate when a public hearing number is correct. Also note that you student enrollment roster(s) covering will need to update your registration was held for SY 2018; the same period of time indicated in the (7) For an applicant that is an LEA, annually. This may take three or more application as the ‘‘count period’’; and business days. BIE school, or a consortium of LEAs or (4) each Indian child included in the BIE schools, describe the process the Information about SAM is available at count must be listed on the LEA’s www.SAM.gov. To further assist you applicant used to meaningfully enrollment roster(s) for at least one day collaborate with Indian Tribes located with obtaining and registering your during the count period. DUNS number and TIN in SAM or in the community in a timely, active, BIE schools that enter an ISEP count and ongoing manner in the development updating your existing SAM account, to verify their Indian student count we have prepared a SAM.gov Tip Sheet, of the comprehensive program and the must use the most current Indian actions taken as a result of such which you can find at: http:// student count certified by the BIE. www2.ed.gov/fund/grant/apply/sam- collaboration; Once an Indian child is determined to (8) Identify specific project objectives faqs.html. be eligible to be counted for such grant 7. Other Submission Requirements: that will further the goal of providing award, the applicant must maintain a Applications for grants under this culturally responsive education for AI/ record of such determination and must program must be submitted AN students to meet their academic not require a new or duplicate electronically unless you qualify for an needs and help them meet State determination or form to be made for exception to this requirement in achievement standards, and identify the such child for a subsequent application accordance with the instructions in this data sources that will be used to for a grant under this subpart. section. measure progress towards meeting a. Electronic Submission of Applicants must also indicate the project objectives; Applications. time span for the project objectives and (9) For an LEA that selects a Applications for grants under the corresponding activities and services for schoolwide application, identify how Formula Grants program, CFDA number AI/AN students. Applicants can choose the use of such funds in a schoolwide 84.060A, must be submitted to set objectives that remain the same program will produce benefits to Indian electronically using the EASIE for up to four years in order to facilitate students that would not be achieved if application located in the EDFacts data collection and enhance long-term the funds were not used in a schoolwide System Portal at https://eden.ed.gov. planning. program; Applications submitted in paper In EASIE Part II, all applicants must— (10) Submit a program budget based format will be rejected unless you (1) Select the type of program being on the estimated grant amount that the qualify for one of the exceptions to the submitted as either regular formula EASIE system calculates from the Indian electronic submission requirement grant program, formula grant project student count you submitted in EASIE described later in this section under consolidated with a title I schoolwide Part I. After the initial grant amounts are Exception to Electronic Submission program, or integration of services determined, additional funds may Requirement, and follow the submission under section 6116 of the ESEA; become available due to such rules outlined therein. (2) Select the grade levels offered by circumstances as withdrawn Electronic Application System for the LEA or BIE school; applications or reduction in an Indian Education (EASIE): EASIE is an (3) Identify, from a list of possible applicant’s student count. An applicant electronic application found in the Department grant programs (e.g., ESEA whose award amount increases or EDFacts System Portal at https:// title I), the programs in the LEA that are decreases more than $5,000 must submit eden.ed.gov. It is divided into two currently coordinated with a title VI a revised budget prior to receiving its parts—EASIE Part I and EASIE Part II. project, or with which the school grant award but will not need to re- EASIE Part I, student count, provides district plans to coordinate during the certify its application. If an applicant’s the appropriate data-entry screens to project year, in accordance with section award amount increases or decreases by submit your verified Indian student 6114(c)(5) of the ESEA, and describe the less than $5,000, a budget update is not

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required. For an applicant that receives true, reliable, and valid. An applicant (1) A legibly dated U.S. Postal Service an increased award amount following that provides a false statement in the postmark. submission of its original budget, the application is subject to penalties under (2) A legible mail receipt with the applicant must allocate the increased the False Claims Act, 18 U.S.C. 1001. date of mailing stamped by the U.S. amount only to previously approved Exception to Electronic Submission Postal Service. budget categories; Requirement: You qualify for an (3) A dated shipping label, invoice, or (11) As required by section 427 of the exception to the electronic submission receipt from a commercial carrier. General Education Provisions Act requirement, and may submit your (4) Any other proof of mailing (GEPA), describe the steps the applicant application in paper format, if you are acceptable to the Secretary of the U.S. proposes to take to ensure equitable unable to submit an application through Department of Education. access to, and participation in, the the EASIE system because— If you mail your application through project or activity to be conducted with • You do not have access to the the U.S. Postal Service, we do not such assistance, by addressing the internet; or accept either of the following as proof special needs of students, teachers, and • You do not have the capacity to of mailing: other program beneficiaries in order to upload documents to the EASIE system; (1) A private metered postmark. overcome barriers to equitable and (2) A mail receipt that is not dated by participation, including barriers based • No later than two weeks before the the U.S. Postal Service. on gender, race, color, national origin, application deadline date for EASIE Part Note: The U.S. Postal Service does not disability, and age; and I (14 calendar days or, if the fourteenth uniformly provide a dated postmark. Before (12) If needed, provide additional calendar day before the application relying on this method, you should check comments to assist OIE in the review of deadline date falls on a Federal holiday, with your local post office. the application. the next business day following the Registration for Formula Grant EASIE: We will not consider applications Federal holiday), you mail, fax, or email postmarked after the application Current, former, and new applicants a written statement to the Department, interested in submitting a Formula deadline date for EASIE Part I or Part II. explaining which of the two grounds for c. Submission of Paper Applications Grant EASIE application must register an exception prevents you from using for Formula Grant EASIE. Prior to the by Hand Delivery. the internet to submit your application. If you qualify for an exception to the opening of EASIE Part I, EDFacts PSC If you mail your written statement to electronic submission requirement, you will send a broadcast to prior year the Department, it must be postmarked (or a courier service) may deliver your grantees and new prospective applicants no later than two weeks before the paper application to the Department by that have contacted EDFacts PSC and application deadline date. If you fax hand. You must deliver the original and registered for EASIE. All recipients who your written statement to the two copies of your application by hand, receive the EDFacts PSC’s broadcast will Department, we must receive the faxed on or before the application deadline be asked to respond to EDFacts PSC statement no later than two weeks dates for both EASIE Part I and Part II, directly to confirm their intent to before the application deadline date. If to the Department at the following register and make updates to the you email the written statement, it must address: U.S. Department of Education, registration information. Entities are be sent no later than two weeks before Office of Indian Education, Attention: strongly encouraged to respond to the the application deadline date to the CFDA Number 84.060A, 400 Maryland email to ensure that any potential person listed under FOR FURTHER Avenue SW, Room 3W227, Washington, registration issues are resolved prior to INFORMATION CONTACT. DC 20202–6335. the deadline for the submission of an Address and mail or fax your The program office accepts hand application. Entities that do not have an statement to: Paulette Davis, U.S. deliveries daily between 8:00 a.m. and active registration or are new applicants Department of Education, Office of 4:30:00 p.m., Washington, DC time, should contact the EDFacts PSC listed Indian Education, 400 Maryland except Saturdays, Sundays, and Federal under FOR FURTHER INFORMATION Avenue SW, Room 3W227, Washington, holidays. CONTACT to register any time before the DC 20202–6335. FAX: (202) 205–0606. EASIE Part I application deadline date. Your paper application must be Note for Mail or Hand Delivery of Paper Registration does not serve as the submitted in accordance with the mail Applications: If you mail or hand deliver entity’s grant application. For assistance or hand delivery instructions described your application to the Department— registering, contact the EDFacts PSC in this notice. (1) You must indicate on the envelope listed under FOR FURTHER INFORMATION b. Submission of Paper Applications and—if not provided by the Department—in Item 11 of the SF 424 the CFDA number, CONTACT. by Mail. Certification for Formula Grant including suffix letter, if any, of the program If you qualify for an exception to the under which you are submitting your EASIE: The applicant’s authorized electronic submission requirement, you application; and representative, who must be legally may mail (through the U.S. Postal (2) The program office will mail you a authorized by the applicant to approve Service or a commercial carrier) your notification of receipt of your grant the application, must certify EASIE Part application to the Department. You application. If you do not receive this I and Part II. Only users with the role must mail the original and two copies notification within 15 business days from the type ‘‘managing user’’ or ‘‘certifying of your application, on or before the application deadline date, you should official user’’ in the EASIE system can application deadline dates for both contact the program office at (202) 260–3774. certify an application. Each applicant EASIE Part I and Part II, to the should identify at least three system Department at the following address: V. Grant Administration Information users, one for each of the following: U.S. Department of Education, Office of 1. Risk Assessment and Special Project director, authorized Indian Education, Attention: CFDA Conditions: Consistent with 2 CFR representative, and another party Number 84.060A, 400 Maryland Avenue 200.205, before awarding grants under designated to answer questions in the SW, Room 3W227, Washington, DC this program the Department conducts a event the project director is unavailable. 20202–6335. review of the risks posed by applicants. The certification process ensures that You must show proof of mailing Under 2 CFR 3474.10, the Secretary may the information in the application is consisting of one of the following: impose special conditions and, in

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appropriate circumstances, high-risk the difference between the percentage of You may also access documents of the conditions on a grant if the applicant or AI/AN students in grades three through Department published in the Federal grantee is not financially stable; has a eight at or above the proficient level in Register by using the article search history of unsatisfactory performance; reading and mathematics on State feature at: www.federalregister.gov. has a financial or other management assessments and the percentage of all Specifically, through the advanced system that does not meet the standards students scoring at those levels; (5) the search feature at this site, you can limit in 2 CFR part 200, subpart D; has not percentage of AI/AN students who your search to documents published by fulfilled the conditions of a prior grant; graduate from high school as measured the Department. or is otherwise not responsible. by the four-year adjusted cohort Dated: January 29, 2018. 2. Administrative and National Policy graduation rate; and (6) the percentage Jason Botel, Requirements: We identify of funds used by grantees prior to award administrative and national policy close-out. Principal Deputy Assistant Secretary requirements in the application package 5. Integrity and Performance System: Delegated the Authority to Perform the Functions and Duties of Assistant Secretary and reference these and other If you receive an award under this grant for Elementary and Secondary Education. requirements in the Applicable program that over the course of the Regulations section of this notice. We project period may exceed the [FR Doc. 2018–02023 Filed 1–31–18; 8:45 am] reference the regulations outlining the simplified acquisition threshold BILLING CODE 4000–01–P terms and conditions of a grant in the (currently $150,000), under 2 CFR Applicable Regulations section of this 200.205(a)(2) we must make a judgment notice. about your integrity, business ethics, DEPARTMENT OF ENERGY 3. Reporting: (a) If you apply for a and record of performance under grant under this program, you must Federal awards—that is, the risk posed Federal Energy Regulatory ensure that you have in place the by you as an applicant—before we make Commission necessary processes and systems to an award. In doing so, we must consider comply with the reporting requirements any information about you that is in the Notice of Filing in 2 CFR part 170 should you receive integrity and performance system funding. This does not apply if you have (currently referred to as the Federal Take notice that the Commission has an exception under 2 CFR 170.110(b). Awardee Performance and Integrity received the following Natural Gas (b) You must submit an annual Information System (FAPIIS)), Pipeline Rate and Refund Report filings: performance report (APR) using the accessible through SAM. You may Docket Numbers: RP17–1015–000. EDFacts System Portal at https:// review and comment on any eden.ed.gov, including financial information about yourself that a Applicants: XTO Energy Inc., et al. information, as directed by the Federal agency previously entered and Description: Joint Petition of XTO Secretary, within 90 days after the close that is currently in FAPIIS. Energy Inc., et al., for Amendment to, of the grant year. The APR is located Please note that, if the total value of and Extension of Limited Waiver within the EDFacts System Portal under your currently active grants, cooperative Request and Request for Expedited the EASIE Part III tab. Prior to the agreements, and procurement contracts Action. system being open to users, grantees from the Federal Government exceeds Filed Date: 1/23/18. will receive an email from the EDFacts $10,000,000, the requirements in 2 CFR Accession Number: 20180123–5207. PSC identifying the date that the APR part 200, Appendix XII, require you to Comments Due: 5 p.m. ET 1/29/18. will be available to grantees and the report certain integrity information to deadline for its transmission. FAPIIS semiannually. Please review the The filings are accessible in the (c) Under 34 CFR 75.250(b), the requirements in 2 CFR part 200, Commission’s eLibrary system by Secretary may approve a data collection Appendix XII, if this grant plus all the clicking on the links or querying the period for a grant for a period of up to other Federal funds you receive exceed docket number. 72 months after the end of the project $10,000,000. Any person desiring to intervene or period and may provide a grantee with protest in any of the above proceedings additional funding for the sole purpose VI. Other Information must file in accordance with Rules 211 of collecting, analyzing, and reporting Accessible Format: Individuals with and 214 of the Commission’s performance measurement data disabilities can obtain this document Regulations (18 CFR 385.211 and regarding the project. and a copy of the application package in 385.214) on or before 5:00 p.m. Eastern 4. Performance Measures: The an accessible format (e.g., braille, large time on the specified comment date. Secretary has established the following print, audiotape, or compact disc) by Protests may be considered, but key performance measures for assessing contacting the EDFacts PSC listed under intervention is necessary to become a the effectiveness and efficiency of the FOR FURTHER INFORMATION CONTACT. party to the proceeding. Formula Grants program: (1) The Electronic Access to This Document: eFiling is encouraged. More detailed percentage of AI/AN students in grades The official version of this document is information relating to filing four and eight who score at or above the published in the Federal Register. Free requirements, interventions, protests, basic level in reading on the National internet access to the official edition of service, and qualifying facilities filings Assessment of Educational Progress the Federal Register and the Code of can be found at: http://www.ferc.gov/ (NAEP); (2) the percentage of AI/AN Federal Regulations is available via the docs-filing/efiling/filing-req.pdf. For students in grades four and eight who Federal Digital System at: www.gpo.gov/ other information, call (866) 208–3676 score at or above the basic level in fdsys. At this site you can view this (toll free). For TTY, call (202) 502–8659. mathematics on the NAEP; (3) the document, as well as other documents percentage of AI/AN students in grades of this Department published in the Dated: January 26, 2018. three through eight meeting State Federal Register, in text or PDF. To use Nathaniel J. Davis, Sr., achievement standards by scoring at or PDF you must have Adobe Acrobat Deputy Secretary. above the proficient level in reading and Reader, which is available free at the [FR Doc. 2018–01977 Filed 1–31–18; 8:45 am] mathematics on State assessments; (4) site. BILLING CODE 6717–01–P

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DEPARTMENT OF ENERGY [email protected]. or call terminate uses, voluntarily requested by (866) 208–3676 (toll free). For TTY, call the registrant and accepted by the Federal Energy Regulatory (202) 502–8659. Agency, of products containing dicloran Commission Dated: January 26, 2018. (DCNA), pursuant to section 6(f)(1) of [Docket No. ER18–713–000] Nathaniel J. Davis, Sr., the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), as amended. Deputy Secretary. CA Flats Solar 150, LLC; Supplemental This termination order follows a March Notice That Initial Market-Based Rate [FR Doc. 2018–01975 Filed 1–31–18; 8:45 am] 16, 2016 Federal Register Notice of Filing Includes Request for Blanket BILLING CODE 6717–01–P Receipt of Request from the registrant Section 204 Authorization listed in Table 2 of Unit III. to voluntarily amend product registrations This is a supplemental notice in the ENVIRONMENTAL PROTECTION to terminate DCNA use on certain above-referenced proceeding of CA Flats AGENCY products. The Agency hereby issues in Solar 150, LLC’s application for market- [FRL–9973–32–0A] this notice a termination order granting based rate authority, with an the requested amendments to terminate accompanying rate tariff, noting that Farm, Ranch, and Rural Communities DCNA use on certain products. Any such application includes a request for Advisory Committee (FRRCC); Notice distribution, sale, or use of the products blanket authorization, under 18 CFR of Charter Renewal subject to this termination order is part 34, of future issuances of securities permitted only in accordance with the and assumptions of liability. AGENCY: Environmental Protection terms of this order, including any Any person desiring to intervene or to Agency (EPA). existing stocks provisions. protest should file with the Federal ACTION: Notice. DATES: The amendments are valid Energy Regulatory Commission, 888 February 1, 2018. First Street NE, Washington, DC 20426, Notice is hereby given that the FOR FURTHER INFORMATION CONTACT: in accordance with Rules 211 and 214 Environmental Protection Agency (EPA) Patricia Biggio, Pesticide Re-evaluation of the Commission’s Rules of Practice has determined that, in accordance with Division (7508P), Office of Pesticide and Procedure (18 CFR 385.211 and the provisions of the Federal Advisory Programs, Environmental Protection 385.214). Anyone filing a motion to Committee Act (FACA), 5 U.S.C. App. 2, Agency, 1200 Pennsylvania Ave. NW, intervene or protest must serve a copy the Farm, Ranch, and Rural Washington, DC 20460–0001; telephone of that document on the Applicant. Communities Advisory Committee Notice is hereby given that the (FRRCC) is in the public interest and is number: (703) 347–0547; fax number: deadline for filing protests with regard necessary in connection with the (703) 308–7070; email address: to the applicant’s request for blanket performance of EPA’s duties. [email protected]. authorization, under 18 CFR part 34, of Accordingly, the FRRCC will be SUPPLEMENTARY INFORMATION: future issuances of securities and renewed for an additional two-year I. General Information assumptions of liability, is February 15, period. The purpose of the FRRCC is to 2018. provide advice and recommendations to A. Does this action apply to me? The Commission encourages the EPA Administrator on This action is directed to the public electronic submission of protests and environmental issues and policies that in general, and may be of interest to a interventions in lieu of paper, using the are of importance to agriculture and wide range of stakeholders including FERC Online links at http:// rural communities. Inquiries may be environmental, human health, and www.ferc.gov. To facilitate electronic directed to Hema Subramanian, agricultural advocates; the chemical service, persons with internet access Designated Federal Officer for FRRCC, industry; pesticide users; and members who will eFile a document and/or be U.S. EPA, (Mail Code 1 101A), 1200 of the public interested in the sale, listed as a contact for an intervenor Pennsylvania Avenue NW, Washington, distribution, or use of pesticides. Since must create and validate an DC 20460, or subramanian.hema@ others also may be interested, the eRegistration account using the epa.gov. Agency has not attempted to describe all eRegistration link. Select the eFiling Dated: January 17, 2018. the specific entities that may be affected link to log on and submit the Jeffrey Sands, by this action. If you have any questions intervention or protests. Senior Advisor to the Administrator for regarding the applicability of this action Persons unable to file electronically Agriculture. to a particular entity, consult the person should submit an original and 5 copies FOR FURTHER INFORMATION [FR Doc. 2018–02050 Filed 1–31–18; 8:45 am] listed under of the intervention or protest to the CONTACT. Federal Energy Regulatory Commission, BILLING CODE 6560–50–P 888 First Street NE, Washington, DC B. How can I get copies of this document and other related information? 20426. ENVIRONMENTAL PROTECTION The filings in the above-referenced AGENCY EPA has established a docket for this proceeding are accessible in the action under docket identification (ID) Commission’s eLibrary system by [EPA–HQ–OPP–2005–0265; FRL–9972–01] number EPA–HQ–OPP–2005–0265. clicking on the appropriate link in the Publicly available docket materials are above list. They are also available for Dicloran (DCNA); Amendments To available either in the electronic docket electronic review in the Commission’s Terminate Uses for Certain Pesticide at http://www.regulations.gov, or, if only Public Reference Room in Washington, Registrations available in hard copy, at the Office of DC. There is an eSubscription link on AGENCY: Environmental Protection Pesticide Programs (OPP) Regulatory the website that enables subscribers to Agency (EPA). Public Docket in Rm. S–4400, One receive email notification when a ACTION: Notice. Potomac Yard (South Bldg.), 2777 S. document is added to a subscribed Crystal Dr., Arlington, VA. The hours of docket(s). For assistance with any FERC SUMMARY: This notice announces EPA’s operation of this Docket Facility are Online service, please email final order for the amendments to from 8:30 a.m. to 4 p.m., Monday

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through Friday, excluding legal greenhouse tomato, nectarine, peach, none of which would affect the holidays. The Docket Facility telephone plum/prune, rose, and sweet cherry. Agency’s action. The Agency hereby number is (703) 305–5805. These are not the last products issues in this notice a termination order containing this pesticide registered for II. Background granting the requested amendments to use in the United States (U.S.). In the terminate these DCNA uses. This termination order follows a March 16, 2016 notice, EPA indicated Federal Register of March 16, 2016 (81 that it would issue an order III. What action is the Agency taking? FR 14109) (FRL–9941–37), Notice of implementing the amendments to This notice announces the Receipt of Request from the registrant terminate uses, unless the Agency listed in Table 2 of Unit III. to received substantive comments within amendments to delete uses, as requested voluntarily amend product registrations the 180-day comment period that would by the sole registrant, of products to terminate DCNA use on apricot, merit its further review of these registered under section 3 of FIFRA. chrysanthemum, conifer, gladiolus, requests, or unless the registrant These registrations are listed in grape, greenhouse cucumber, withdrew their request. The Agency sequence by registration number in greenhouse lettuce, greenhouse rhubarb, received seven comments on the notice; Table 1 of this unit.

TABLE 1—DCNA PRODUCT REGISTRATION AMENDMENTS TO DELETE USES

EPA registration No. Product name Uses deleted

10163–189 ...... Botran 75–W Fungicide ...... apricots, chrysanthemums, conifers, gladiolus, grapes, greenhouse cucumbers, 10163–195 ...... Botran Technical ...... greenhouse lettuce, greenhouse rhubarb, greenhouse tomato, nectarines, 10163–226 ...... Botran 5F Fungicide ...... peaches, plums/prunes, roses, and sweet cherries. 10163–329 ...... Botran P 5F Fungicide.

Table 2 of this unit includes the name Agency’s formal response is available at amended to terminate use on apricots, and address of record for the registrant regulation.gov in the DCNA chrysanthemums, conifers, gladiolus, of the products in Table 1 of this unit, reregistration docket EPA–HQ–OPP– grapes, greenhouse cucumbers, in sequence by EPA company number. 2005–0265. greenhouse lettuce, greenhouse rhubarb, This number corresponds to the first Per the Agency’s response, the 2006 greenhouse tomato, nectarines, peaches, part of the EPA registration numbers of dietary risk assessment concluded that plums/prunes, roses, and sweet the products listed above. dietary exposure from all currently cherries. The effective date of the registered crops does not exceed the amendments to terminate affected uses TABLE 2—REGISTRANT OF AMENDED Agency’s level of concern. In addition, that are subject of this notice is February PRODUCTS following a review of available 1, 2018. Any distribution, sale, or use of monitoring data, EPA concluded that existing stocks of the products EPA Company name and address the small number of samples with identified in Table 1 of Unit III. in a company No. detectable residues in monitoring data manner inconsistent with any of the provisions for disposition of existing 10163 ...... Gowan Company, P.O. Box and the low residue levels found in 5569, Yuma, AZ 85366– those samples support Gowan’s claim stocks set forth in Unit VII. will be a 5569. that imported commodities are not violation of FIFRA. likely to pose risks of concern. The VI. What is the Agency’s authority for IV. Summary of Public Comments monitoring data also supports Gowan’s taking this action? Received and Agency Response to assertion that the subject commodities Comments will not likely be contaminated with Section 6(f)(1) of FIFRA provides that residue levels over tolerance. Therefore, a registrant of a pesticide product may During the public comment period the Agency does not expect that the use at any time request that any of its provided, EPA received seven of DCNA on the subject commodities pesticide registrations be canceled or comments in response to the Federal will create a risk of concern. As such, amended to terminate one or more uses. Register of March 16, 2016 (81 FR the Agency supports retaining the FIFRA further provides that, before 14109), notice announcing the Agency’s DCNA tolerances for import of these acting on the request, EPA must publish receipt of the request to voluntarily commodities to avoid potential trade a notice of receipt of any such request amend product registrations to delete barriers with countries that use Codex in the Federal Register. Thereafter, DCNA uses for products listed in Table Maximum Residue Levels (MRLs) or following the public comment period, 1 of Unit III. have DCNA tolerances established for the EPA Administrator may approve Six of the seven comments were from these commodities, and will convert the such a request. The notice of receipt for growers outside of the U.S. that existing tolerances to import tolerances this action was published for comment supported the continued use of DCNA. in a separate action. in the Federal Register of March 16, In addition, the Agency also received a 2016 (81 FR 14109) (FRL–9941–37). The V. Cancellation Order single comment from the registrant comment period closed on September (Gowan) which proposed the conversion Pursuant to FIFRA section 6(f), EPA 12, 2016. of dicloran crop residue tolerances to hereby approves the requested VII. Provisions for Disposition of import tolerances based on conclusions amendments to terminate uses of DCNA Existing Stocks from previous DCNA risk assessments for registrations identified in Table 1 of and Pesticide Data Program (PDP) data Unit III. Accordingly, the Agency hereby Existing stocks are those stocks of from 2004 to 2014. The Agency has orders that the product registrations registered pesticide products which are reviewed these comments and the identified in Table 1 of Unit III. are currently in the United States and

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which were packaged, labeled, and ADDRESSES: You may review copies of Dated: January 16, 2018. released for shipment prior to the the final Order, the Petitions, and other Alexis Strauss, effective date of the action. The existing supporting information at U.S. Acting Regional Administrator, Region IX. stocks provision for the products subject Environmental Protection Agency [FR Doc. 2018–02049 Filed 1–31–18; 8:45 am] to this order is as follows. Region IX, 75 Hawthorne Street, San BILLING CODE 6560–50–P The registrant may continue to sell Francisco, CA 94105–3901. and distribute existing stocks of The EPA requests that you contact the products listed in Table 1 until February ENVIRONMENTAL PROTECTION individual listed in the FOR FURTHER 1, 2019, which is 1 year after AGENCY publication of this termination order in INFORMATION CONTACT section to view the Federal Register. Thereafter, the copies of the final Order, Petitions, and [FRL–9973–34—Region 2] registrant is prohibited from selling or other supporting information. You may distributing products listed in Table 1 of view the hard copies Monday through Proposed CERCLA Cost Recovery Unit III. that contains directions for use Friday, from 9 a.m. to 3 p.m., excluding Settlement for the Facet Enterprises, on the deleted uses, except for export in Federal holidays. If you wish to Inc. Superfund Site, Elmira Heights, accordance with FIFRA section 17 or for examine these documents, you should Chemung County, New York proper disposal. make an appointment at least 24 hours AGENCY: Environmental Protection Persons other than the registrant may before the visiting day. Additionally, the Agency. sell, distribute, or use existing stocks of final Order is available electronically at: products listed in Table 1 of Unit III https://www.epa.gov/sites/production/ ACTION: Notice; request for public until supplies are exhausted, provided files/2017-10/documents/linn_fairfield_ comment. that such sale, distribution, or use is _ _ _ and ethyl order 10-6-17.pdf. SUMMARY: In accordance with the consistent with the terms of the Comprehensive Environmental previously approved labeling on, or that FOR FURTHER INFORMATION CONTACT: Response, Compensation, and Liability accompanied, the deleted uses. Laura Yannayon, EPA Region IX, (415) 972–3534, [email protected]. Act of 1980, as amended (‘‘CERCLA’’), Authority: 7 U.S.C. 136 et. seq. notice is hereby given by the U.S. Dated: January 10, 2018. SUPPLEMENTARY INFORMATION: Environmental Protection Agency Yu-Ting Guilaran, SJVUAPCD Rule 2201 affords the EPA a (‘‘EPA’’), Region 2, of a proposed cost Director, Pesticide Re-evaluation Division, 45-day period to review and object to, recovery settlement agreement pursuant Office of Pesticide Programs. as appropriate, a proposed permit. Rule to CERCLA, with Motor Components, [FR Doc. 2018–02027 Filed 1–31–18; 8:45 am] 2201 § 5.9.1. If the EPA does not object, LLC (‘‘Motor Components’’) and BILLING CODE 6560–50–P Rule 2201 allows any person to petition Honeywell International, Inc. the EPA, within 60 days, to object to the (‘‘Honeywell’’) (collectively, ‘‘Settling proposed permit. Petitions must be Parties’’) for the Facet Enterprises, Inc. ENVIRONMENTAL PROTECTION based only on objections to the permit Superfund Site (‘‘Site’’), located in AGENCY that were raised with reasonable Elmira Heights, Chemung County, New York. [FRL–9973–33—Region 9] specificity during the public comment period, unless the petitioner DATES: Comments must be submitted on Clean Air Act Operating Permit demonstrates that it was impracticable or before March 5, 2018. Program; Petitions for Objection to to raise these issues during the comment ADDRESSES: The proposed settlement is Proposed Permits for Linn Operating, period, or the grounds for the issue available for public inspection at EPA Inc.—Fairfield Lease and Ethyl D arose after this period. Region 2 offices at 290 Broadway, New Lease, San Joaquin Valley Unified Air The EPA received the Petitions dated York, New York 10007–1866. Comments Pollution Control District June 24, 2015, requesting that the EPA should reference the Facet Enterprises, Inc. Superfund Site, Elmira Heights, AGENCY: Environmental Protection object to the proposed issuance of the Permits to Linn Operating, Inc. for the Chemung County, New York, Index No. Agency (EPA). II–CERCLA–02–2017–2037. To request a addition of three new gas-fired steam ACTION: Notice of final Order on copy of the proposed settlement generators on its Fairfield lease, and one petitions to object to air permit. agreement, please contact the EPA new gas-fired steam generator on its employee identified below. SUMMARY: This document announces Ethyl D lease, both located in Kern FOR FURTHER INFORMATION CONTACT: that the Environmental Protection County, California. The substantive Lauren Charney, Attorney, Office of Agency (EPA) Administrator has claims raised in the two Petitions were Regional Counsel, New York/Caribbean responded to two citizen petitions essentially identical. Therefore, the EPA asking the EPA to object to the proposed Superfund Branch, U.S. Environmental responded to both Petitions in a single Protection Agency, 290 Broadway, 17th issuance of two Authority to Construct/ order. In summary, the Petitions Certificate of Conformity documents Floor, New York, NY 10007–1866. claimed that certain emission email: [email protected]. (Permits) issued by the San Joaquin reductions had not been included in an Valley Unified Air Pollution Control Telephone: 212–637–3181. EPA-approved attainment plan and thus District (SJVUAPCD). Specifically, the SUPPLEMENTARY INFORMATION: The could not be used, and that certain Administrator has denied the June 24, Settling Parties agree to reimburse EPA emission reduction credits used in the 2015 petitions (Petitions) submitted by for past response costs paid at or in the Climate Change Law Foundation to permitting process were invalid. connection with the Site as set forth: (a) object to SJVUAPCD’s proposed On October 6, 2017, the Administrator Within 30 days of the effective date, issuance of the Permits for the Linn issued an order denying the Petitions. Honeywell shall pay $550,000, plus Operating, Inc.—Fairfield and Ethyl D The EPA’s rationale for denying the interest accrued, and (b) Motor Leases located in Kern County, claims raised in the petitions are Components shall pay $1,300,000, plus California. described in the Order. accrued interest in up to four

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installments over a period not to exceed 22, 2018, from 9 a.m. to 12 p.m. (Eastern of FACA and all appropriate SAB Staff three years from the effective date. time) and Tuesday, March 27, 2018, Office procedural policies. The settlement includes a covenant by from 2 p.m. to 4 p.m. (Eastern time). Availability of Meeting Materials: EPA not to sue or to take administrative ADDRESSES: The public teleconference Prior to the meeting(s), the Panel’s draft action against the Settling Party/Parties will be held by telephone only. report, meeting agenda and other pursuant to Section 107(a) of CERCLA, supporting materials (if applicable) will FOR FURTHER INFORMATION CONTACT: 42 U.S.C. 9607(a), with regard to the Any be accessible on the meeting page response costs related to the work at the member of the public who wants further corresponding to each chemical Site enumerated in the settlement information concerning this meeting assessment on the SAB website (http:// agreement. For thirty (30) days notice may contact Dr. Shaunta Hill- www.epa.gov/sab). Hammond, Designated Federal Officer following the date of publication of this Procedures for Providing Public Input: (DFO), via phone at (202) 564–3343, or notice, EPA will receive written Public comment for consideration by email at hill-hammond.shaunta@ comments relating to the settlement. EPA’s federal advisory committees and epa.gov. General information about the EPA will consider all comments panels has a different purpose from SAB, as well as updates concerning the received and may modify or withdraw public comment provided to EPA meeting announced in this notice, may its consent to the settlement if program offices. Therefore, the process be found on the EPA website at http:// comments received disclose facts or for submitting comments to a federal www.epa.gov/sab. considerations that indicate that the advisory committee is different from the proposed settlement is inappropriate, Technical Contact for EPA’s Draft process used to submit comments to an improper, or inadequate. EPA’s Reports: For information concerning the EPA program office. Federal advisory response to any comments received will EPA draft assessments, please contact committees and panels, including be available for public inspection at James Avery, phone (703) 347–8668 or scientific advisory committees, provide EPA Region 2, 290 Broadway, New via email at [email protected]. independent advice to the EPA. York, New York 10007–1866. SUPPLEMENTARY INFORMATION: Members of the public can submit Dated: January 3, 2018. Background: The SAB was relevant comments pertaining to the Walter Mugdan, established pursuant to the EPA’s charge, meeting materials, or the Director, Emergency and Remedial Response Environmental Research, Development, group providing advice. Input from the Division, U.S. Environmental Protection and Demonstration Authorization Act public to the SAB will have the most Agency, Region 2. (ERDDAA), codified at 42 U.S.C. 4365, impact if it provides specific scientific [FR Doc. 2018–02046 Filed 1–31–18; 8:45 am] to provide independent scientific and or technical information or analysis for BILLING CODE 6560–50–P technical advice to the Administrator on the SAB to consider or if it relates to the the scientific and technical basis for clarity or accuracy of the technical Agency positions and regulations. The information. Members of the public ENVIRONMENTAL PROTECTION SAB is a Federal Advisory Committee wishing to provide comment should AGENCY chartered under the Federal Advisory follow the instructions below to submit Committee Act (FACA), 5 U.S.C., App. comments. [FRL–9973–47–OA] 2. Pursuant to FACA and EPA policy, Oral Statements: In general, Notification of a Public Teleconference notice is hereby given that the SAB individuals or groups requesting to of the Science Advisory Board CAAC augmented for ETBE and tBA make an oral presentation will be Chemical Assessment Advisory Panel will hold a public teleconference limited to three minutes during a public Committee Augmented for the Review to discuss its draft report regarding the teleconference. Interested parties of EPA’s Draft Ethyl Tertiary Butyl EPA’s draft assessments; Toxicological wishing to provide comments should Ether (ETBE) and tert-Butyl Alcohol Review for Ethyl Tertiary Butyl Ether contact Dr. Hill-Hammond (preferably (tert-butanol; tBA) Assessments (ETBE) (External Review Draft, dated via email), at the contact information June 2017); and Toxicological Review of noted above by March 14, 2018, to be AGENCY: Environmental Protection tert-Butyl Alcohol (tert-butanol or tBA) placed on the list of public speakers. Agency (EPA). (External Review Draft, dated June Written Statements: Written ACTION: Notice. 2017)). The Panel will provide their statements will be accepted throughout advice to the Administrator through the the advisory process; however, for SUMMARY: The Environmental Protection chartered SAB. timely consideration by SAB members, Agency (EPA) Science Advisory Board EPA’s Office of Research and statements should be supplied to the (SAB) Staff Office announces a public Development (ORD) requested that the DFO (preferably via email) at the contact teleconference of the SAB Chemical SAB conduct a peer review of the two information noted above by March 14, Assessment Advisory Committee EPA draft assessments. The EPA SAB 2018. It is the SAB Staff Office general augmented for the review of two EPA Staff Office augmented the SAB CAAC policy to post written comments on the draft assessments; Toxicological Review with subject matter experts, to provide web page for the advisory meeting or for Ethyl Tertiary Butyl Ether (ETBE) advice to the Administrator through the teleconference. Submitters are requested (External Review Draft, dated June chartered SAB regarding these to provide an unsigned version of each 2017); and Toxicological Review of tert- assessments. The CAAC augmented for document because the SAB Staff Office Butyl Alcohol (tert-butanol or tBA) ETBE/tBA Panel convened a public does not publish documents with (External Review Draft, dated June 2017) face-to-face meeting on August 15–17, signatures on its websites. Members of (CAAC augmented for ETBE/tBA Panel 2017, to deliberate on the peer review the public should be aware that their or Panel). The Panel will meet to charge questions. The Panel will meet personal contact information, if discuss its draft peer review report via a public teleconference to discuss its included in any written comments, may regarding the two EPA draft assessments draft peer review report and to hear and be posted to the SAB website. named above. consider public comments. The SAB Copyrighted material will not be posted DATES: The public teleconference will CAAC augmented for ETBE and tBA without explicit permission of the be held on two dates: Thursday, March Panel will comply with the provisions copyright holder.

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Accessibility: For information on should make an appointment at least 24 of the Petition. EPA’s rationale for access or services for individuals with hours before the visiting day. granting the Petition in part and disabilities, please contact Dr. Hill- Additionally, the final Orders for the denying the Petition in part are Hammond at the phone number or Alon USA—Bakersfield Refinery are described in the Orders. email address noted above, preferably at available electronically at: https:// Dated: January 16, 2018. least ten days prior to the meeting, to www.epa.gov/sites/production/files/ give the EPA as much time as possible 2017-01/documents/alon_ Alexis Strauss, to process your request. response2014.pdf (Part V), and https:// Acting Regional Administrator, Region IX. Dated: January 23, 2018. www.epa.gov/sites/production/files/ [FR Doc. 2018–02051 Filed 1–31–18; 8:45 am] 2017-08/documents/alon_2nd_ Khanna Johnston, BILLING CODE 6560–50–P response2014.pdf (Parts II and III). Deputy Director, EPA Science Advisory Board Staff Office. FOR FURTHER INFORMATION CONTACT: Laura Yannayon, EPA Region IX, (415) [FR Doc. 2018–02058 Filed 1–31–18; 8:45 am] 972–3534, [email protected]. FARM CREDIT ADMINISTRATION BILLING CODE 6560–50–P SUPPLEMENTARY INFORMATION: SJVUAPCD Rule 2201 affords the EPA a Farm Credit Administration Board; ENVIRONMENTAL PROTECTION 45-day period to review and object to, Sunshine Act Meeting AGENCY as appropriate, a proposed permit. Rule 2201 § 5.9.1. If the EPA does not object, AGENCY: Farm Credit Administration. [FRL–9973–36—Region 9] Rule 2201 allows any person to petition ACTION: Notice, regular meeting. Clean Air Act Operating Permit the EPA, within 60 days, to object to the Program; Petition for Objection to proposed permit. Petitions must be SUMMARY: Notice is hereby given, Proposed Permit for Alon USA— based only on objections to the permit pursuant to the Government in the that were raised with reasonable Bakersfield Refinery, San Joaquin Sunshine Act, of the regular meeting of specificity during the public comment Valley Unified Air Pollution Control the Farm Credit Administration Board District period, unless the petitioner demonstrates that it was impracticable (Board). AGENCY: Environmental Protection to raise these issues during the comment DATES: The regular meeting of the Board Agency (EPA). period, or the grounds for the issue will be held at the offices of the Farm ACTION: Notice of final Order on petition arose after this period. Credit Administration in McLean, The EPA received the Petition dated to object to air permit. Virginia, on February 8, 2018, from 9:00 December 16, 2014, requesting that the a.m. until such time as the Board SUMMARY: This document announces EPA object to the proposed issuance of that the Environmental Protection the Permit to Alon USA—Bakersfield concludes its business. Agency (EPA) Administrator has Refining, for modifications to its ADDRESSES: Farm Credit responded to a citizen petition asking petroleum products refinery and Administration, 1501 Farm Credit Drive, the EPA to object to the proposed gasoline terminal, located in Kern McLean, Virginia 22102–5090. Submit issuance of an Authority to Construct/ County, California. The Petition attendance requests via email to Certificate of Conformity (Permit) issued contained five different bases for its [email protected]. See by the San Joaquin Valley Unified Air request for an objection. Pursuant to the SUPPLEMENTARY INFORMATION for further Pollution Control District (SJVUAPCD). terms of a settlement agreement, noticed information about attendance requests. Specifically, on December 21, 2016, the on October 21, 2016 (81 FR 72804), the then Administrator granted Part V of the EPA issued a final Order responding to FOR FURTHER INFORMATION CONTACT: Dale December 16, 2014 petition (Petition) the claims made in Part V of the Petition L. Aultman, Secretary to the Farm and on July 28, 2017, the current on December 21, 2016, and a second Credit Administration Board, (703) 883– Administrator denied Parts II and III of Order responding to the claims made in 4009, TTY (703) 883–4056, aultmand@ the Petition submitted by the Parts II and III of the Petition on July 28, fca.gov. Association of Irritated Residents, 2017.1 Part V of the Petition requested SUPPLEMENTARY INFORMATION: Parts of Center for Biological Diversity, and the that the EPA object to the Permit Sierra Club to object to SJVUAPCD’s because it allegedly relies on invalid this meeting of the Board will be open proposed issuance of the Permit for the emission reduction credits. Parts II and to the public (limited space available) Alon USA—Bakersfield Refinery located III of the Petition requested that the EPA and parts will be closed to the public. in Kern County, California. object to the Permit because the Please send an email to VisitorRequest@ ADDRESSES: You may review copies of emissions baseline and the assumptions FCA.gov at least 24 hours before the the final Orders, the Petition, and other used to calculate project emissions were meeting. In your email include: Name, supporting information at U.S. allegedly inaccurate. postal address, entity you are Environmental Protection Agency On December 21, 2016, the then representing (if applicable), and Region IX, 75 Hawthorne Street, San Administrator issued an order granting telephone number. You will receive an Francisco, CA 94105–3901. Part V of the Petition. On March 16, email confirmation from us. Please be The EPA requests that you contact the 2017, SJVUAPCD responded to the prepared to show a photo identification individual listed in the FOR FURTHER December 21, 2016 objection. On July when you arrive. If you need assistance INFORMATION CONTACT section to view 28, 2017, the current Administrator for accessibility reasons, or if you have copies of the final Orders, the Petition, issued an order denying Parts II and III any questions, contact Dale L. Aultman, and other supporting information. You Secretary to the Farm Credit may view the hard copies Monday 1 On August 8, 2017, pursuant to the settlement Administration Board, at (703) 883– agreement, the Petitioners withdrew Parts I and IV through Friday, from 9 a.m. to 3 p.m., of the Petition. See https://www.epa.gov/sites/ 4009. The matters to be considered at excluding federal holidays. If you wish production/files/2017-08/documents/alon_ the meeting are: to examine these documents, you withdrawal2014.pdf.

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Open Session Dated: January 30, 2018. FEDERAL COMMUNICATIONS A. Approval of Minutes Dale L. Aultman, COMMISSION Secretary, Farm Credit Administration Board. • January 11, 2018 [FR Doc. 2018–02097 Filed 1–30–18; 11:15 am] Open Commission Meeting, Tuesday, January 30, 2018 B. Report BILLING CODE 6705–01–P • Cost of Production Trends for Grain January 23, 2018. and Soybean Producers The Federal Communications Closed Session * Commission will hold an Open Meeting on the subjects listed below on Tuesday, • Office of Secondary Market Oversight January 30, 2018 which is scheduled to Periodic Report commence at 10:30 a.m. in Room TW– * Session Closed-Exempt pursuant to C305, at 445 12th Street SW, 5 U.S.C. 552b(c)(8) and (9). Washington, DC.

Item No. Bureau Subject

1 ...... PUBLIC SAFETY & HOMELAND SECU- Presentation: The Commission will receive a preliminary report from the Public Safety RITY. & Homeland Security Bureau on its investigation into the false emergency alert that occurred in Hawaii on January 13, 2018. 2 ...... PUBLIC SAFETY & HOMELAND SECU- Title: Wireless Emergency Alerts (PS Docket No. 15–91); Amendment of Part 11 of RITY. the Commission’s Rules Regarding the Emergency Alert System (PS Docket No. 15–94). Summary: The Commission will consider a Second Report and Order and Second Order on Reconsideration to enhance the effectiveness of Wireless Emergency Alerts, including improving the geographic accuracy of these alerts. 3 ...... WIRELINE COMPETITION ...... Title: Connect America Fund (WC Docket No. 10–90); ETC Annual Reports and Cer- tifications (WC Docket No. 14–58); Rural Broadband Experiments (WC Docket No. 14–259); Connect America Fund Phase II Auction (AU Docket No. 17–182). Summary: The Commission will consider an Order and Order on Reconsideration ad- dressing the remaining issues raised by parties challenging the Commission’s or- ders implementing the Connect America Phase II auction (Auction 903), in which service providers will compete to receive support of up to $1.98 billion to offer voice and broadband service in unserved high-cost areas. 4 ...... WIRELINE COMPETITION AND WIRE- Title: Connect America Fund Phase II Auction Scheduled for July 24, 2018 Notice and LESS TELE-COMMUNICATIONS. Filing Requirements and Other Procedures for Auction 903; Connect America Fund Phase II Auction (AU Docket No. 17–182); Connect America Fund (WC Docket No. 10–90). Summary: The Commission will consider a Public Notice establishing procedures for the Connect America Fund Phase II auction, which will award up to $1.98 billion over 10 years to service providers that commit to offer voice and broadband serv- ices to fixed locations in unserved high-cost areas. 5 ...... WIRELINE COMPETITION AND OFFICE Title: Establishment of the Office of Economics and Analytics (MD Docket No. 18–3). OF MANAGING DIRECTORY. Summary: The Commission will consider an Order to establish an Office of Econom- ics and Analytics. 6 ...... MEDIA ...... Title: Amendment of Section 73.3613 of the Commission’s Rules Regarding Filing of Contracts (MB Docket No. 18–4); Modernization of Media Regulation Initiative (MB Docket No. 17–105). Summary: The Commission will consider a Notice of Proposed Rulemaking proposing to eliminate the requirement that broadcast licensees and permittees routinely sub- mit paper copies of contracts and other documents to the FCC as specified in Sec- tion 73.3613 of the Commission’s rules. 7 ...... MEDIA ...... Title: Modernization of Media Regulation Initiative (MB Docket No. 17–105); Amend- ment of Parts 27, 54, 73, 74, and 76 of the Commission’s Rules to Delete Rules Made Obsolete by the Digital Television Transition. Summary: The Commission will consider an Order deleting rules made obsolete by the Digital TV transition. 8 ...... ENFORCEMENT ...... Title: Enforcement Bureau Action. Summary: The Commission will consider an enforcement action.

* * * * * the accommodation you will need and Office of Media Relations, (202) 418– The meeting site is fully accessible to a way we can contact you if we need 0500; TTY 1–888–835–5322. Audio/ people using wheelchairs or other more information. Last minute requests Video coverage of the meeting will be mobility aids. Sign language will be accepted, but may be impossible broadcast live with open captioning interpreters, open captioning, and to fill. Send an email to: [email protected] over the internet from the FCC Live web assistive listening devices will be or call the Consumer & Governmental page at www.fcc.gov/live. provided on site. Other reasonable Affairs Bureau at 202–418–0530 (voice), For a fee this meeting can be viewed accommodations for people with 202–418–0432 (TTY). live over George Mason University’s disabilities are available upon request. Additional information concerning Capitol Connection. The Capitol In your request, include a description of this meeting may be obtained from the Connection also will carry the meeting

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live via the internet. To purchase these DEPARTMENT OF HEALTH AND ‘‘Planning Grants to Develop a Model services, call (703) 993–3100 or go to HUMAN SERVICES Intervention for Youth/Young Adults www.capitolconnection.gmu.edu. with Child Welfare Involvement at Risk Federal Communications Commission. Centers for Disease Control and of Homelessness’’ (Phase I). The Phase Prevention Marlene H. Dortch, II data collection described in this Secretary. Advisory Committee on Immunization Notice was approved by the Office of [FR Doc. 2018–02029 Filed 1–31–18; 8:45 am] Practices (ACIP); Notice of Charter Management and Budget in July 2017. BILLING CODE 6712–01–P Amendment; Correction This request is for a time extension for data collection under OMB #0970–0445. Notice is hereby given of a change in There are no changes to the previously FEDERAL ELECTION COMMISSION the filing date of the Advisory approved information collection. Due to Committee on Immunization Practices delays, data collection has not begun Sunshine Act Meeting (ACIP); Notice of Charter Amendment and will need to extend beyond the which was published in the Federal current expiration date of July 2018. TIME AND DATE: Tuesday, February 6, Register on December 28, 2018 Volume Grantees are receiving an additional 2018 at 10:00 a.m. 82, Number 248, page 61573. year to conduct their work. To capture The amended filing date should read PLACE: 999 E Street NW, Washington, data at a similar point in the as follows: November 9, 2017. DC. development of their efforts, data FOR FURTHER INFORMATION CONTACT: STATUS: This meeting will be closed to collection will be delayed. the public. Stephanie Thomas, ACIP Committee Phase II is an initiative, funded by the MATTERS TO BE CONSIDERED: Compliance Management Specialist, CDC, NCIRD, matters pursuant to 52 U.S.C. 30109. email [email protected]. Children’s Bureau (CB) within ACF, that Matters relating to internal personnel The Director, Management Analysis will support implementation grants for decisions, or internal rules and and Services Office, has been delegated interventions designed to intervene with practices. the authority to sign Federal Register youth who have experienced time in Information the premature disclosure notices pertaining to announcements of foster care and are most likely to have of which would be likely to have a meetings and other committee a challenging transition into adulthood, considerable adverse effect on the management activities, for both the including homelessness and unstable implementation of a proposed Centers for Disease Control and housing experiences. CB awarded six Commission action. Prevention and the Agency for Toxic implementation grants (Phase II) in Matters concerning participation in Substances and Disease Registry. September 2015. civil actions or proceedings or Elaine L. Baker, arbitration. During the implementation phase, Director, Management Analysis and Services organizations will conduct a range of * * * * * Office, Centers for Disease Control and activities to fine-tune their CONTACT PERSON FOR MORE INFORMATION: Prevention. comprehensive service model, Judith Ingram, Press Officer Telephone: [FR Doc. 2018–01969 Filed 1–31–18; 8:45 am] determine whether their model is being (202) 694–1220 BILLING CODE 4163–18–P implemented as intended, and develop Laura E. Sinram, plans to evaluate the model under a Deputy Secretary of the Commission. DEPARTMENT OF HEALTH AND potential future funding opportunity [FR Doc. 2018–02120 Filed 1–30–18; 4:15 pm] HUMAN SERVICES (Phase III). During Phase II, ACF will BILLING CODE 6715–01–P engage a contractor to: Conduct a cross- Administration for Children and site process evaluation. Data collected Families for the process evaluation will be used FEDERAL MARITIME COMMISSION to assess grantees’ organizational Proposed Information Collection [Petition No. P4–16] capacity to implement and evaluate the Activity; Comment Request model interventions and to monitor Petition of the Coalition for Fair Port Title: Implementation Grants to each grantee’s progress toward Practices for Rulemaking; Notice of Develop a Model Intervention for achieving the goals of the Accessibility and Extension of Time Youth/Young Adults with Child Welfare implementation period. On January 23, 2018, the Commission Involvement at Risk of Homelessness: Data for the process evaluation will be resumed normal operations and offices Phase II—Extension OMB No.: 0970– collected through: Interviews during site are now open and accessible. Time has 0445. visits. Description: The Administration for been extended for this proceeding. Respondents: Grantee agency Replies and any further submissions to Children and Families (ACF) at the U.S. Department of Health and Human directors and staff; partner agency the record are now due February 1, directors and staff. Partner agencies may 2018. Services (HHS) intends to collect data for an evaluation of the initiative, vary by site, but are expected to include By the Commission. Implementation Grants to Develop a child welfare, mental health, and youth Rachel E. Dickon, Model Intervention for Youth/Young housing/homelessness agencies. Assistant Secretary. Adults with Child Welfare Involvement [FR Doc. 2018–01982 Filed 1–31–18; 8:45 am] at Risk of Homelessness: Phase II. This BILLING CODE 6731–AA–P builds on the previously approved

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ANNUAL BURDEN ESTIMATES

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

Grantee Site Visit-Semi-Structured Interview Topic Guide ...... 60 1 1.5 90

Estimated Total Annual Burden Hours ...... 90

In compliance with the requirements proposed collection of information; (c) Title: Grants to States for Access and of Section 3506(c)(2)(A) of the the quality, utility, and clarity of the Visitation. Paperwork Reduction Act of 1995, the information to be collected; and (d) OMB No.: 0970–0204. Administration for Children and ways to minimize the burden of the Families is soliciting public comment collection of information on Description: On an annual basis, on the specific aspects of the respondents, including through the use States must provide OCSE with data on information collection described above. of automated collection techniques or programs that the Grants to States for Copies of the proposed collection of other forms of information technology. Access and Visitation Program has information can be obtained and Consideration will be given to funded. These program reporting comments may be forwarded by writing comments and suggestions submitted requirements include, but are not to the Administration for Children and within 60 days of this publication. limited to, the collection of data on the Families, Office of Planning, Research number of parents served, types of Mary Jones, and Evaluation, 330 C Street SW, services delivered, program outcomes, Washington, DC 20201, Attn: OPRE ACF/OPRE Certifying Officer. client socio- economic data, referrals Reports Clearance Officer. Email [FR Doc. 2018–01987 Filed 1–31–18; 8:45 am] sources, and other relevant data address: OPREinfocollection@ BILLING CODE 4184–29–P including the number of noncustodial acf.hhs.gov. All requests should be parents who were able to obtain identified by the title of the information DEPARTMENT OF HEALTH AND increased parenting time with their collection. children and how many AV grant The Department specifically requests HUMAN SERVICES program cases were also open IV–D comments on (a) whether the proposed collection of information is necessary Administration for Children and child support cases. for the proper performance of the Families Respondents: State Child Access and Visitation Programs and State and/or functions of the agency, including Proposed Information Collection local service providers. whether the information shall have Activity; Comment Request practical utility; (b) the accuracy of the agency’s estimate of the burden of the Proposed Projects:

ANNUAL BURDEN ESTIMATES

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

Online Portal Survey by States and Jurisdictions ...... 54 1 16 864 Survey of local service grantees ...... 296 1 16 4,736

Estimated Total Annual Burden The Department specifically requests comments and suggestions submitted Hours: 5,600. comments on: (a) Whether the proposed within 60 days of this publication. collection of information is necessary In compliance with the requirements Robert Sargis, for the proper performance of the of the Paperwork Reduction Act of 1995 Reports Clearance Officer. (Pub. L. 104–13, 44 U.S.C. Chap 35), the functions of the agency, including [FR Doc. 2018–01985 Filed 1–31–18; 8:45 am] Administration for Children and whether the information shall have Families is soliciting public comment practical utility; (b) the accuracy of the BILLING CODE 4184–41–P on the specific aspects of the agency’s estimate of the burden of the information collection described above. proposed collection of information; (c) Copies of the proposed collection of the quality, utility, and clarity of the information can be obtained and information to be collected; and (d) comments may be forwarded by writing ways to minimize the burden of the to the Administration for Children and collection of information on Families, Office of Planning, Research respondents, including through the use and Evaluation, 330 C Street SW, of automated collection techniques or Washington, DC 20201, Attn: ACF other forms of information technology. Reports Clearance Officer. Email Consideration will be given to address: [email protected]. All requests should be identified by the title of the information collection.

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DEPARTMENT OF HEALTH AND Public Law 115–31, Title II; and the • On the Participant Information HUMAN SERVICES Patient Protection and Affordable Care Form: Act, 42 U.S.C. 300u–11 (Prevention and 1. Question #8 on currently approved Administration for Community Living Public Health Fund). and proposed Participant Information The Evidence-Based Falls Prevention Form: Additional chronic conditions Agency Information Collection Programs support a national resource have been added to the list of options: Activities; Submission for OMB center and award competitive grants to Cancer; high blood pressure/ Review; Public Comment Request; implement evidence-based community hypertension; osteoporosis; and Evidence-Based Falls Prevention programs that have been proven to Parkinson’s Disease. Program; OMB Control Number, 0985– reduce the incidence of falls for older 2. Question #8 on currently approved 0039 adults. The programs also identify and proposed Participant Information Form: None (no chronic conditions) has AGENCY: Administration for Community sustainable funding mechanisms for been removed from the list of options. Living (ACL), HHS. these programs via the national resource center, promote the importance of falls 3. Question #11 on currently ACTION: Notice. prevention strategies, and provide approved and proposed Participant Information Form: Two sub-questions SUMMARY: The Administration for public education about the risks of falls and ways to prevent them. have been added to assess the: Community Living is announcing that • the proposed collection of information OMB approval of the existing set of Frequency of Falls (6b) • Impact of Falls (6c) listed above has been submitted to the Falls Prevention data collection tools Office of Management and Budget (OMB Control Number, 0985–0039) 4. Question #15 on the Participant (OMB) for review and clearance as expires on 01/31/2018. This data Information Form has been added to required under section 506(c)(2)(A) of collection continues to be necessary for examine home modifications 5. Question #16 on the Participant the Paperwork Reduction Act of 1995. monitoring program operations and Information Form has been added to This 30-Day notice collects comments outcomes. ACL/AoA proposes to use the examine activity level on the information collection following tools: (1) Semi-annual performance reports to monitor grantee On the Post Program Survey: requirements related to ACL’s Evidence- 1. Question #2 on the currently Based Falls Prevention Program’s progress; (2) a Host Organization Data form to record the location of agencies approved and proposed Post Program Proposed Extension with Changes of a Survey: Two sub-questions have been Currently Approved Collection. that sponsor programs that will allow mapping of the delivery infrastructure; added to assess the: DATES: Submit written comments on the • and (3) a set of tools used to collect Frequency of Falls (6b) collection of information by March 5, • Impact of Falls (6c) 2018. information at each program completed by the program leaders (Program 2. Question #4 on the currently ADDRESSES: Submit written comments Information Cover Sheet and approved Post Program Survey (‘‘Has on the collection of information by: Attendance Log), a Participant this program reduced your fear of (a) Email to: OIRA_submission@ Information Form completed by each falling?’’) has been removed. omb.eop.gov, Attn: OMB Desk Officer participant, and a Post Program Survey 3. Question #7 on currently approved for ACL; to be completed by a random sample of Post Program Survey and Question #6 (b) fax to 202–395–5806, Attn: OMB participants. ACL/AoA intends to on the proposed form: Removed ‘‘I plan Desk Officer for ACL; or continue using an online data entry to continue exercising’’ from the list of (c) by mail to the Office of system for the program and participant options. Activity level is now addressed Information and Regulatory Affairs, survey data. in Question #9. OMB, New Executive Office Bldg., 725 4. Question #8 on currently approved 17th St. NW, Rm. 10235, Washington, Comments in Response to the 60-Day Post Program Survey and Question #7 DC 20503, Attn: OMB Desk Officer for Federal Register Notice on the proposed form: Removed ‘‘Did ACL. As required by 5 CFR 1320.8(d), a 60- exercises I learned in this program at FOR FURTHER INFORMATION CONTACT: Day notice was published in the Federal home’’ from the list of options. Activity Shannon Skowronski at Register on October 3, 3017, Volume 82, level is now addressed in Question #9 [email protected] or Number 190, page 46064. Four emails on the revised form. 5. Question #8 on currently approved 202–795–7438. were received with comments. Based on Post Program Survey and Question #7 SUPPLEMENTARY INFORMATION: Under the the comments, some minor modifications were made to the on the proposed form: Removed ‘‘Made PRA (44 U.S.C. 3501–3520), Federal changes in my home to reduce my risk agencies must obtain approval from the proposed survey instruments. In addition to the public comments, of falling (for example, secured rugs or Office of Management and Budget improved lighting)’’ from the list of (OMB) for each collection of feedback on the current forms was sought from the following: options. Home modifications are now information they conduct or sponsor. addressed in Question #8 in the revised • ACL Performance and Evaluation The Evidence-Based Falls Prevention form. Programs is a cooperative agreement subject matter experts • 6. Question #8 on the Participant financed through the Prevention and CDC Injury Prevention Center subject Information Form has been added to Public Health Fund (PPHF), most matter experts • examine home modifications recently with FY 2017 PPHF funds. The National Falls Prevention Resource 7. Question #9 on the Participant statutory authority for cooperative Center and falls prevention subject Information Form has been added to agreements under the current program matter experts • examine activity level announcement is contained in the Two grantee focus groups (with fewer On the Program Information Cover Public Health Service Act, 42 U.S.C. than 9 participants combined) Sheet: 300u–2 (Community Programs) and Based on this collective feedback, the 1. Question #6 has been revised to 300u–3 (Information Programs); and following modifications to the currently improve clarity to read ‘‘Session 0/ Consolidated Appropriations Act, 2017, approved forms are being proposed: Introductory Session’’.

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2. Question #7 has been revised to Estimated Annualized Burden Hours The total estimated burden is 4,345 change wording to ‘‘Name of program hours per year. ACL/AoA estimates the offered.’’ The proposed Falls Prevention Data burden of this collection of information Collection Tools can be found at ACL’s as 288 hours for project staff, 1,435 Website at: https://www.acl.gov/about- hours for local agency staff, and 2,622 acl/public-input. hours for individuals.

Average time Total burden Type of respondent Form name Estimated number of Number of responses per response hours respondents per respondent (in hours) (annual)

Project staff ...... Semi-annual Perform- 18 ...... Twice a year ...... 8 288 ance Report. Local agency leaders ...... Program Information 700 leaders ...... Twice a year (one set .50 700 Cover Sheet/Partici- per program). pant Information Form/ Attendance Log/Post Program Survey. Local data entry staff ...... 36 data entry staff ...... Once per program × .50 700 1,400 programs. Local organization staff Host Organization Data 700 staff ...... 1 ...... 05 35 and local database Form. entry staff. Program participants ...... Participant Information 16,390 ...... 1 ...... 10 1,639 Form. Program participants ...... Post Program Survey ..... 9,834 ...... 1 ...... 10 983

Total Burden Hours ...... 4,345

Dated: January 26, 2018. being conducted to satisfy one of FDA’s 796–2133, email: Yvonne.Knight@ Mary Lazare, performance goals included in the sixth fda.hhs.gov. reauthorization of the Prescription Drug Principal Deputy Administrator. SUPPLEMENTARY INFORMATION: [FR Doc. 2018–02000 Filed 1–31–18; 8:45 am] User Fee Act (PDUFA VI), part of the BILLING CODE 4154–01–P FDA Reauthorization Act of 2017 I. Background (FDARA), to hold a series of workshops Under FDARA, FDA agreed, in related to model-informed drug accordance with section I of the PDUFA DEPARTMENT OF HEALTH AND development (MIDD). VI Performance Goals, Ensuring the HUMAN SERVICES DATES: The public workshop will be Effectiveness of the Human Drug held on February 1, 2018, from 8 a.m. Review, part J, Enhancing Regulatory Food and Drug Administration to 5 p.m., Eastern Time. See the Decision Tools to Support Drug [Docket No. FDA–2018–N–0001] SUPPLEMENTARY INFORMATION section for Development and Review, to convene a registration date and information. series of workshops to identify best Best Practices in Modeling and ADDRESSES: The public workshop will practices for MIDD (https:// Simulation for Oncology Products; be held at the FDA White Oak Campus, www.fda.gov/downloads/ForIndustry/ Public Workshop 10903 New Hampshire Ave., Bldg. 31 UserFees/PrescriptionDrugUserFee/ Conference Center, the Great Room (Rm. AGENCY: Food and Drug Administration, UCM511438.pdf). FDA is conducting 1503, B and C), Silver Spring, MD HHS. this workshop as part of the MIDD 20993–0002. Entrance for public ACTION: Notice of public workshop. workshop series. workshop participants (non-FDA Over the past few decades, there has SUMMARY: The Food and Drug employees) is through Building 1 where been extensive investment in oncology Administration’s (FDA, the Agency, or routine security procedures will be drug discovery and development. we) Center for Drug Evaluation and performed. For parking and security Despite greater understanding of disease Research (CDER), in co-sponsorship information, please refer to: http:// biology and drug mechanisms of action, with the International Society of www.fda.gov/AboutFDA/ further progress in model-informed Pharmacometrics (ISoP), is announcing WorkingatFDA/BuildingsandFacilities/ strategies is needed to continue a public workshop entitled ‘‘Best WhiteOakCampusInformation/ advancements in oncology drug Practices in Modeling and Simulation ucm241740.htm. development. Innovations in clinical for Oncology Products.’’ The purpose of FOR FURTHER INFORMATION CONTACT: trial design utilizing more informative the meeting is to discuss ‘‘best Jeannette Dinin, Center for Drug endpoints could help bring more practices’’ in integrating Evaluation and Research, Food and effective treatment options to cancer pharmacokinetic, pharmacodynamic, Drug Administration, 10903 New patients faster by accelerating efficacy, and safety data into models to Hampshire Ave., Bldg. 22, Rm. 2108, development of effective new drugs and best inform oncology drug development, Silver Spring, MD 20993–0002, 240– reducing failure rates in expensive late- evaluate disease- and mechanism- 402–4978, email: Jeannette.Dinin@ phase development. specific early endpoints to predict long- fda.hhs.gov; or Yvonne Knight, Center As more effective and complex term efficacy, and discuss potential for Drug Evaluation and Research, Food combination strategies and novel targets regulatory implications of model- and Drug Administration, 10903 New for cancer treatment evolve, exploring informed decisions in drug Hampshire Ave., Bldg. 51, Rm. 2142, more informative and predictive development. This workshop is also Silver Spring, MD 20993–0002, 301– endpoints to assess treatment response

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(e.g., response evaluation criteria in III. Registration and Accommodations DEPARTMENT OF HEALTH AND solid tumors-based endpoints (RECIST)) HUMAN SERVICES has become an active area of research. Registration: Persons interested in Alternative metrics that require shorter attending this public workshop must Food and Drug Administration periods of observation or provide more register online by January 31, 2018, at https://fdaoce.formstack.com/forms/ [Docket Nos. FDA–2016–E–1234 and FDA– precise assessment of treatment effects 2016–E–1257] could lead to more rapid completion of isop. Please provide complete contact clinical trials and require fewer patients. information for each attendee, including Determination of Regulatory Review Promising among these alternative name, title, affiliation, address, email, Period for Purposes of Patent metrics are model-based metrics, such and telephone number. Extension; CORLANOR as those based on longitudinal Registration is free and based on continuous tumor size measurements. AGENCY: Food and Drug Administration, space availability, with priority given to HHS. Additionally, model-informed early registrants. Early registration is ACTION: Notice. approaches can help satisfy a need to recommended because seating is optimize dosing regimens for patients. limited; therefore, FDA may limit the Investigations to refine dosing regimens SUMMARY: The Food and Drug number of participants from each often occur after new drug approval Administration (FDA or the Agency) has and/or are driven by pharmacometric organization. Registrants will receive determined the regulatory review period modeling approaches. There is growing confirmation when they have been for CORLANOR and is publishing this interest in using model-informed accepted. If time and space permit, notice of that determination as required approaches to help balance the risks and onsite registration on the day of the by law. FDA has made the benefits of oncology products by public workshop will be provided determination because of the identifying optimal dosing regimens, beginning at 8 a.m. submission of applications to the and broad stakeholder engagement and If you need special accommodations Director of the U.S. Patent and discussion around this topic can be due to a disability, please contact Trademark Office (USPTO), Department of Commerce, for the extension of a beneficial. Yvonne Knight (see FOR FURTHER patent which claims that human drug INFORMATION CONTACT) no later than II. Objectives product. January 24, 2018. The objectives of the workshop are to: DATES: Anyone with knowledge that any Streaming Webcast of the Public of the dates as published (in the 1. Discuss ‘‘best practices’’ in Workshop: The meeting will also be SUPPLEMENTARY INFORMATION section) are integrating human pharmacokinetic, webcast. A live webcast of this pharmacodynamic, efficacy, and safety incorrect may submit either electronic workshop will be available at https:// or written comments and ask for a data into models that best inform collaboration.fda.gov/fdaisop/ on the oncology drug development. redetermination by April 2, 2018. day of the workshop. If you have never Furthermore, any interested person may 2. Describe novel imaging techniques attended a Connect Pro event before, and diagnostic and predictive petition FDA for a determination test your connection at https:// regarding whether the applicant for biomarkers that may be utilized in collaboration.fda.gov/common/help/en/ oncology drug development. extension acted with due diligence support/meeting_test.htm. To get a during the regulatory review period by 3. Describe disease- and mechanism- quick overview of the Connect Pro July 31, 2018. See ‘‘Petitions’’ in the specific early endpoints to predict long- program, visit https://www.adobe.com/ SUPPLEMENTARY INFORMATION section for term efficacy. go/connectpro_overview. FDA has more information. 4. Evaluate the potential to shift from verified the website addresses in this ADDRESSES: You may submit comments traditional RECIST-based endpoints document, as of the date this document as follows. Please note that late, such as Overall Response Rate (ORR) publishes in the Federal Register, but untimely filed comments will not be and Progression Free Survival (PFS) to websites are subject to change over time. considered. Electronic comments must modified RECIST approaches (e.g., be submitted on or before April 2, 2018. imRECIST for immunotherapies) as well Transcripts: Please be advised that as The https://www.regulations.gov as to other (model-based) tumor kinetic soon as a transcript of the public electronic filing system will accept metrics to support early decision workshop is available, it will be comments until midnight Eastern Time making in Phase 1/2 as well as in accessible at https:// at the end of April 2, 2018. Comments confirmatory trials. FDAOCE.formstack.com/forms/isop. It may be viewed at the Dockets received by mail/hand delivery/courier 5. Discuss potential regulatory (for written/paper submissions) will be Management Staff (HFA–305), Food and implications of model-informed considered timely if they are Drug Administration, 5630 Fishers decisions in drug development, postmarked or the delivery service including, model-based target Lane, Rm. 1061, Rockville, MD 20852. acceptance receipt is on or before that identification, dose/exposure Dated: January 29, 2018. date. justification based on preclinical Leslie Kux, evidence, dose selection for first-in- Electronic Submissions Associate Commissioner for Policy. human trials, quality by design, early Submit electronic comments in the [FR Doc. 2018–01992 Filed 1–31–18; 8:45 am] clinical study design, dose finding/ following way: titration, confirmatory trials, product BILLING CODE 4164–01–P • Federal eRulemaking Portal: labeling, and post-marketing studies. https://www.regulations.gov. Follow the A detailed agenda will be posted on instructions for submitting comments. the following website in advance of the Comments submitted electronically, workshop: https://www.fda.gov/ including attachments, to https:// downloads/Drugs/NewsEvents/ www.regulations.gov will be posted to UCM589458.pdf. the docket unchanged. Because your

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comment will be made public, you are for public viewing and posted on Although only a portion of a regulatory solely responsible for ensuring that your https://www.regulations.gov. Submit review period may count toward the comment does not include any both copies to the Dockets Management actual amount of extension that the confidential information that you or a Staff. If you do not wish your name and Director of USPTO may award (for third party may not wish to be posted, contact information to be made publicly example, half the testing phase must be such as medical information, your or available, you can provide this subtracted as well as any time that may anyone else’s Social Security number, or information on the cover sheet and not have occurred before the patent was confidential business information, such in the body of your comments and you issued), FDA’s determination of the as a manufacturing process. Please note must identify this information as length of a regulatory review period for that if you include your name, contact ‘‘confidential.’’ Any information marked a human drug product will include all information, or other information that as ‘‘confidential’’ will not be disclosed of the testing phase and approval phase identifies you in the body of your except in accordance with § 10.20 (21 as specified in 35 U.S.C. 156(g)(1)(B). comments, that information will be CFR 10.20) and other applicable FDA has approved for marketing the posted on https://www.regulations.gov. disclosure law. For more information human drug product CORLANOR • If you want to submit a comment about FDA’s posting of comments to (ivabradine hydrochloride). CORLANOR with confidential information that you public dockets, see 80 FR 56469, is indicated to reduce the risk of do not wish to be made available to the September 18, 2015, or access the hospitalization for worsening heart public, submit the comment as a information at: https://www.gpo.gov/ failure in patients with stable, written/paper submission and in the fdsys/pkg/FR-2015-09-18/pdf/2015- symptomatic chronic heart failure with ≤ manner detailed (see ‘‘Written/Paper 23389.pdf. left ventricular ejection fraction 35% Submissions’’ and ‘‘Instructions’’). Docket: For access to the docket to who are in sinus rhythm with resting heart rate ≥ 70 beats per minute and Written/Paper Submissions read background documents or the electronic and written/paper comments either are on maximally tolerated doses Submit written/paper submissions as received, go to https:// of beta-blockers or have a follows: www.regulations.gov and insert the contraindication to beta-blocker use. • Mail/Hand delivery/Courier (for docket number, found in brackets in the Subsequent to this approval, the USPTO written/paper submissions): Dockets heading of this document, into the received a patent term restoration Management Staff (HFA–305), Food and ‘‘Search’’ box and follow the prompts application for CORLANOR (U.S. Patent Drug Administration, 5630 Fishers and/or go to the Dockets Management Nos. 7,879,842 and 7,867,996) from Les Lane, Rm. 1061, Rockville, MD 20852. Laboratoires Servier, and the USPTO • For written/paper comments Staff, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852. requested FDA’s assistance in submitted to the Dockets Management determining the patents’ eligibility for FOR FURTHER INFORMATION CONTACT: Staff, FDA will post your comment, as patent term restoration. In a letter dated well as any attachments, except for Beverly Friedman, Office of Regulatory July 28, 2016, FDA advised the USPTO information submitted, marked and Policy, Food and Drug Administration, that this human drug product had identified, as confidential, if submitted 10903 New Hampshire Ave., Bldg. 51, undergone a regulatory review period as detailed in ‘‘Instructions.’’ Rm. 6250, Silver Spring, MD 20993, and that the approval of CORLANOR Instructions: All submissions received 301–796–3600. represented the first permitted must include the Docket Nos. FDA– SUPPLEMENTARY INFORMATION: commercial marketing or use of the 2016–E–1234 and FDA–2016–E–1257 I. Background product. Thereafter, the USPTO for ‘‘Determination of Regulatory requested that FDA determine the Review Period for Purposes of Patent The Drug Price Competition and product’s regulatory review period. Extension; CORLANOR.’’ Received Patent Term Restoration Act of 1984 comments, those filed in a timely (Pub. L. 98–417) and the Generic II. Determination of Regulatory Review manner (see ADDRESSES), will be placed Animal Drug and Patent Term Period in the docket and, except for those Restoration Act (Pub. L. 100–670) FDA has determined that the submitted as ‘‘Confidential generally provide that a patent may be applicable regulatory review period for Submissions,’’ publicly viewable at extended for a period of up to 5 years CORLANOR is 293 days. Of this time, https://www.regulations.gov or at the so long as the patented item (human 0 days occurred during the testing phase Dockets Management Staff between 9 drug product, animal drug product, of the regulatory review period, while a.m. and 4 p.m., Monday through medical device, food additive, or color 293 days occurred during the approval Friday. additive) was subject to regulatory phase. These periods of time were • Confidential Submissions—To review by FDA before the item was derived from the following dates: submit a comment with confidential marketed. Under these acts, a product’s 1. The date an exemption under information that you do not wish to be regulatory review period forms the basis section 505(i) of the Federal Food, Drug, made publicly available, submit your for determining the amount of extension and Cosmetic Act (the FD&C Act) (21 comments only as a written/paper an applicant may receive. U.S.C. 355(i)) became effective: No submission. You should submit two A regulatory review period consists of exemption claimed. FDA has verified copies total. One copy will include the two periods of time: A testing phase and the Les Laboratoires Servier claim that information you claim to be confidential an approval phase. For human drug they did not file an investigational new with a heading or cover note that states products, the testing phase begins when drug application (IND) with FDA. ‘‘THIS DOCUMENT CONTAINS the exemption to permit the clinical 2. The date the application was CONFIDENTIAL INFORMATION.’’ The investigations of the drug becomes initially submitted with respect to the Agency will review this copy, including effective and runs until the approval human drug product under section the claimed confidential information, in phase begins. The approval phase starts 505(b) of the FD&C Act: June 27, 2014. its consideration of comments. The with the initial submission of an FDA has verified the applicant’s claim second copy, which will have the application to market the human drug that the new drug application (NDA) for claimed confidential information product and continues until FDA grants CORLANOR (NDA 206143) was initially redacted/blacked out, will be available permission to market the drug product. submitted on June 27, 2014.

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3. The date the application was SUMMARY: HRSA is publishing this Section 2112(b)(2) of the PHS Act, 42 approved: April 15, 2015. FDA has notice of petitions received under the U.S.C. 300aa–12(b)(2), requires that verified the applicant’s claim that NDA National Vaccine Injury Compensation ‘‘[w]ithin 30 days after the Secretary 206143 was approved on April 15, 2015. Program (the program), as required by receives service of any petition filed This determination of the regulatory the Public Health Service (PHS) Act, as under section 2111, the Secretary shall review period establishes the maximum amended. While the Secretary of HHS publish notice of such petition in the potential length of a patent extension. (the Secretary) is named as the Federal Register.’’ Set forth below is a However, the USPTO applies several respondent in all proceedings brought list of petitions received by HRSA on statutory limitations in its calculations by the filing of petitions for December 1, 2017, through December of the actual period for patent extension. compensation under the Program, the 31, 2017. This list provides the name of In its applications for patent extension, United States Court of Federal Claims is petitioner, city and state of vaccination this applicant seeks 292 days of patent charged by statute with responsibility (if unknown then city and state of term extension. for considering and acting upon the person or attorney filing claim), and petitions. case number. In cases where the Court III. Petitions FOR FURTHER INFORMATION CONTACT: For has redacted the name of a petitioner Anyone with knowledge that any of information about requirements for and/or the case number, the list reflects the dates as published are incorrect may filing petitions, and the program in such redaction. submit either electronic or written general, contact Lisa L. Reyes, Acting Section 2112(b)(2) also provides that comments and, under 21 CFR 60.24, ask Clerk, United States Court of Federal the special master ‘‘shall afford all for a redetermination (see DATES). Claims, 717 Madison Place NW, interested persons an opportunity to Furthermore, as specified in § 60.30 (21 Washington, DC 20005, (202) 357–6400. submit relevant, written information’’ CFR 60.30), any interested person may For information on HRSA’s role in the relating to the following: petition FDA for a determination program, contact the Director, National 1. The existence of evidence ‘‘that regarding whether the applicant for Vaccine Injury Compensation Program, there is not a preponderance of the extension acted with due diligence 5600 Fishers Lane, Room 08N146B, evidence that the illness, disability, during the regulatory review period. To Rockville, MD 20857; (301) 443–6593, injury, condition, or death described in meet its burden, the petition must or visit our website at: http:// the petition is due to factors unrelated comply with all the requirements of www.hrsa.gov/vaccinecompensation/ to the administration of the vaccine § 60.30, including but not limited to: index.html. described in the petition,’’ and Must be timely (see DATES), must be SUPPLEMENTARY INFORMATION: The 2. Any allegation in a petition that the filed in accordance with § 10.20, must program provides a system of no-fault petitioner either: contain sufficient facts to merit an FDA compensation for certain individuals a. ‘‘[S]ustained, or had significantly investigation, and must certify that a who have been injured by specified aggravated, any illness, disability, true and complete copy of the petition childhood vaccines. Subtitle 2 of Title injury, or condition not set forth in the has been served upon the patent XXI of the PHS Act, 42 U.S.C. 300aa– Vaccine Injury Table but which was applicant. (See H. Rept. 857, part 1, 98th 10 et seq., provides that those seeking caused by’’ one of the vaccines referred Cong., 2d sess., pp. 41–42, 1984.) compensation are to file a petition with to in the Table, or Petitions should be in the format the U.S. Court of Federal Claims and to b. ‘‘[S]ustained, or had significantly specified in 21 CFR 10.30. serve a copy of the petition on the aggravated, any illness, disability, Submit petitions electronically to Secretary of HHS, who is named as the injury, or condition set forth in the https://www.regulations.gov at Docket respondent in each proceeding. The Vaccine Injury Table the first symptom Nos. FDA–2013–S–0610. Submit written Secretary has delegated this or manifestation of the onset or petitions (two copies are required) to the responsibility under the program to significant aggravation of which did not Dockets Management Staff (HFA–305), HRSA. The Court is directed by statute occur within the time period set forth in Food and Drug Administration, 5630 to appoint special masters who take the Table but which was caused by a Fishers Lane, Rm. 1061, Rockville, MD evidence, conduct hearings as vaccine’’ referred to in the Table. 20852. appropriate, and make initial decisions In accordance with Section as to eligibility for, and amount of, 2112(b)(2), all interested persons may Dated: January 26, 2018. compensation. submit written information relevant to Leslie Kux, A petition may be filed with respect the issues described above in the case of Associate Commissioner for Policy. to injuries, disabilities, illnesses, the petitions listed below. Any person [FR Doc. 2018–01979 Filed 1–31–18; 8:45 am] conditions, and deaths resulting from choosing to do so should file an original BILLING CODE 4164–01–P vaccines described in the Vaccine Injury and three (3) copies of the information Table (the table) set forth at 42 CFR with the Clerk of the U.S. Court of 100.3. This table lists for each covered Federal Claims at the address listed DEPARTMENT OF HEALTH AND childhood vaccine the conditions that above (under the heading FOR FURTHER HUMAN SERVICES may lead to compensation and, for each INFORMATION CONTACT), with a copy to condition, the time period for HRSA addressed to Director, Division of Health Resources and Services occurrence of the first symptom or Injury Compensation Programs, Administration manifestation of onset or of significant Healthcare Systems Bureau, 5600 National Vaccine Injury Compensation aggravation after vaccine Fishers Lane, 08N146B, Rockville, MD Program; List of Petitions Received administration. Compensation may also 20857. The Court’s caption (Petitioner’s be awarded for conditions not listed in Name v. Secretary of HHS) and the AGENCY: Health Resources and Services the Table and for conditions that are docket number assigned to the petition Administration (HRSA), Department of manifested outside the time periods should be used as the caption for the Health and Human Services (HHS). specified in the table, but only if the written submission. Chapter 35 of title petitioner shows that the condition was 44, United States Code, related to ACTION: Notice. caused by one of the listed vaccines. paperwork reduction, does not apply to

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information required for purposes of 30. Traci Wilks Jones, High Point, North 61. Michael Valese, Toms River, New Jersey, carrying out the program. Carolina, Court of Federal Claims No: Court of Federal Claims No: 17–1956V 17–1907V 62. Luciana Chaves and Rodrigo Calloni on Dated: January 26, 2018. 31. Robin Wynne, Boston, Massachusetts, behalf of A. C., Wheaton, Maryland, George Sigounas, Court of Federal Claims No: 17–1908V Court of Federal Claims No: 17–1957V Administrator. 32. Emily Middleton, Mt. Sterling, Kentucky, 63. Mara Corter, Raleigh, North Carolina, Court of Federal Claims No: 17–1910V Court of Federal Claims No: 17–1961V List of Petitions Filed 33. Willie J. Blackmon, Banning, California, 64. Penny Cornelius, Port Huron, Michigan, 1. Janece Dix, Gibsonton, Florida, Court of Court of Federal Claims No: 17–1911V Court of Federal Claims No: 17–1963V Federal Claims No: 17–1859V 34. Reva Sims, Missoula, Montana, Court of 65. Alexandra Morrow, Port Huron, 2. Constance Crabtree, Portland, Oregon, Federal Claims No: 17–1913V California, Court of Federal Claims No: Court of Federal Claims No: 17–1860V 35. Darlene Howe, Encinitas, California, 17–1964V 3. Norval Nichols, Washington, District of Court of Federal Claims No: 17–1914V 66. Joseph Hilo, Lititz, Pennsylvania, Court of Columbia, Court of Federal Claims No: 36. Angela Apuzzo, Boston, Massachusetts, Federal Claims No: 17–1965V 17–1861V Court of Federal Claims No: 17–1915V 67. Darrell Lamont Tatum, Wellesley Hills, 4. Rachelle Gucwa on behalf of B. C., 37. Jonathan Rogan on behalf of T. R., Massachusetts, Court of Federal Claims Tavernier, Florida, Court of Federal Encinitas, California, Court of Federal No: 17–1966V Claims No: 17–1862V Claims No: 17–1916V 68. Chandra Novak, Howell, Michigan, Court 5. Sharla Bafia, Washington, District of 38. Sheri Grove, Cedartown, Georgia, Court of of Federal Claims No: 17–1967V Columbia, Court of Federal Claims No: Federal Claims No: 17–1917V 69. Genarina Decastro, Philadelphia, 17–1863V 39. Douglas Kelly, Rockville, Maryland, Pennsylvania, Court of Federal Claims 6. Gary Koslica, Kenosha, Wisconsin, Court Court of Federal Claims No: 17–1918V No: 17–1973V of Federal Claims No: 17–1864V 40. Tracy McCormick, Lombard, Illinois, 70. Jeana Milton on behalf of Thirza Arlene 7. Tiffany Twofoot, Nashua, New Hampshire, Court of Federal Claims No: 17–1919V Bagley, Deceased, Standale, Michigan, Court of Federal Claims No: 17–1866V 41. Gorett Parsloe, Washington, District of Court of Federal Claims No: 17–1974V 8. Lauren Wilkins, Pleasant Grove, Utah, Columbia, Court of Federal Claims No: 71. Katherine Duke, Amarillo, Texas, Court of Court of Federal Claims No: 17–1867V 17–1920V Federal Claims No: 17–1976V 9. Stephanie Fiorello and Anthony Fiorello 42. Robert Lermond, Washington, District of 72. Kenneth Cuevas, Durham, North on behalf of R. F., Westfield, New Jersey, Columbia, Court of Federal Claims No: Carolina, Court of Federal Claims No: Court of Federal Claims No: 17–1869V 17–1921V 17–1978V 10. Sara Zutter, Brooklyn, New York, Court 43. Steven S. Mills on behalf of Meri E. 73. Jackie Duty, Dallas, Texas, Court of of Federal Claims No: 17–1872V Boatman, Washington, District of Federal Claims No: 17–1979V 11. Bailey McCammon, Avon, Indiana, Court Columbia, Court of Federal Claims No: 74. Rhoda Cohen, Howard Beach, New York, of Federal Claims No: 17–1873V 17–1922V Court of Federal Claims No: 17–1980V 12. Kristoff Hendrickson, Saint Louis Park, 44. Sandra Williams, Bemidji, Minnesota, 75. Angela Avanti, Washington, District of Minnesota, Court of Federal Claims No: Court of Federal Claims No: 17–1925V Columbia, Court of Federal Claims No: 17–1878V 45. Amanda Tripp, Lewiston, Maine, Court of 17–1986V 13. Andrew Sanchez-Aldana and Karina Federal Claims No: 17–1926V 76. Faith Hoelzel, Mukwonago, Wisconsin, Sanchez-Aldana on behalf of V. S. A., 46. Kimberly Smyth, Washington, District of Court of Federal Claims No: 17–1987V San Diego, California, Court of Federal Columbia, Court of Federal Claims No: 77. Andrew Bartosiewicz and Lonya Claims No: 17–1879V 17–1927V Bartosiewicz on behalf of J. B., 14. Kathy Biser, Streetsboro, Ohio, Court of 47. Charyl Wojtaszek, Washington, District of Pittsburgh, Pennsylvania, Court of Federal Claims No: 17–1880V Columbia, Court of Federal Claims No: Federal Claims No: 17–1988V 15. Tarmesha Brown, Phoenix, Arizona, 17–1928V 78. Doreen Clouser, Marshall, Illinois, Court Court of Federal Claims No: 17–1884V 48. Katherine J. Rader, Maple Grove, of Federal Claims No: 17–1989V 16. Alma Rivera, New York, New York, Court Minnesota, Court of Federal Claims No: 79. Janell Ross, Washington, District of of Federal Claims No: 17–1887V 17–1929V Columbia, Court of Federal Claims No: 17. Charles Presley, Cherry Log, Georgia, 49. Bradford Kaup, Boise, Idaho, Court of 17–1992V Court of Federal Claims No: 17–1888V Federal Claims No: 17–1930V 80. Ralph M. Pavelka, Mora, Minnesota, 18. Kathleen M. Lesley, O’Fallon, Missouri, 50. Deanna Drayton, New York, New York, Court of Federal Claims No: 17–1993V Court of Federal Claims No: 17–1889V Court of Federal Claims No: 17–1932V 81. Ashley Crenshaw, Baltimore, Maryland, 19. Lorrie Jones, D’Iberville, Mississippi, 51. Echo Llewellyn, Washington, District of Court of Federal Claims No: 17–1994V Court of Federal Claims No: 17–1890V Columbia, Court of Federal Claims No: 82. Heather Lynch, Boston, Massachusetts, 20. Annette Quintana, Montrose, Colorado, 17–1934V Court of Federal Claims No: 17–1995V Court of Federal Claims No: 17–1891V 52. James Phillips, Washington, District of 83. Marylou Porzio, Washington, District of 21. Keri Anne Bordelon, Hot Springs, Columbia, Court of Federal Claims No: Columbia, Court of Federal Claims No: Arkansas, Court of Federal Claims No: 17–1935V 17–1996V 17–1892V 53. Melody Chesley, Homer, Alaska, Court of 84. Melvina Wong, Washington, District of 22. Janice Romano, Glassboro, New Jersey, Federal Claims No: 17–1936V Columbia, Court of Federal Claims No: Court of Federal Claims No: 17–1893V 54. Cynthia Alexander, Washington, District 17–1997V 23. Elizabeth Watkins, Washington, District of Columbia, Court of Federal Claims No: 85. Angela Lynch, Washington, District of of Columbia, Court of Federal Claims No: 17–1939V Columbia, Court of Federal Claims No: 17–1894V 55. Tracy Oehling, Manassas Park, Virginia, 17–1999V 24. Gayle Lawless Cox, Los Gatos, California, Court of Federal Claims No: 17–1940V 86. Leslie Kraus, Bensalem, Pennsylvania, Court of Federal Claims No: 17–1895V 56. Derhyl Middleton, Washington, District Court of Federal Claims No: 17–2001V 25. Valerie Newport, Phoenix, Arizona, Court of Columbia, Court of Federal Claims No: 87. Ramona Dicomo, Linwood, New Jersey, of Federal Claims No: 17–1897V 17–1942V Court of Federal Claims No: 17–2002V 26. Carla Durham, Pitcairn, Pennsylvania, 57. Opal Waltz, Front Royal, Virginia, Court 88. Martha Stanford, Florence, Alabama, Court of Federal Claims No: 17–1899V of Federal Claims No: 17–1943V Court of Federal Claims No: 17–2005V 27. Carol Gutierrez, Des Moines, Iowa, Court 58. Judith Mora, Chandler, Arizona, Court of 89. Karen Hergett, Billings, Montana, Court of of Federal Claims No: 17–1904V Federal Claims No: 17–1945V Federal Claims No: 17–2008V 28. Joan Forrest, Holladay, Utah, Court of 59. Rebecca Crane and Grant Crane on behalf 90. Emily McHenry, Chicago, Illinois, Court Federal Claims No: 17–1905V of S. C., Tucson, Arizona, Court of of Federal Claims No: 17–2009V 29. Jeanne Rafferty, Washington, District of Federal Claims No: 17–1947V 91. George Foster, Henderson, New York, Columbia, Court of Federal Claims No: 60. Christine Rayner, Cranston, Rhode Island, Court of Federal Claims No: 17–2010V 17–1906V Court of Federal Claims No: 17–1953V 92. Laila Saghir, Owings Mills, Maryland,

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Court of Federal Claims No: 17–2011V The location and time remain the same. Date: March 5, 2018. 93. Michael Dore, Cambridge, Massachusetts, The meeting is closed to the public. Time: 1:00 p.m. to 2:00 p.m. Court of Federal Claims No: 17–2012V Agenda: To review and evaluate grant 94. Crystal Hill, Philadelphia, Pennsylvania, Dated: January 29, 2018. applications. Court of Federal Claims No: 17–2013V Melanie J. Pantoja, Place: National Institutes of Health, 5601 95. Harry Wilmore, Philadelphia, Program Analyst, Office of Federal Advisory Fishers Lane, Rockville, MD 20892, Pennsylvania, Court of Federal Claims Committee Policy. (Telephone Conference Call). No: 17–2014V [FR Doc. 2018–02036 Filed 1–31–18; 8:45 am] Contact Person: Dharmendar Rathore, 96. Elizabeth Mozer, Dresher, Pennsylvania, Ph.D., Senior Scientific Review Officer, Court of Federal Claims No: 17–2015V BILLING CODE 4140–01–P Scientific Review Program, Division of 97. Jacqueline Pohlman, Auburn, Extramural Activities, Room 3G30, National Washington, Court of Federal Claims No: Institues of Health/NIAID, 5601 Fishers Lane, 17–2016V DEPARTMENT OF HEALTH AND Drive, MSC 9823, Bethesda, MD 20892–9823, 98. Randall Fennig, Vienna, Virginia, Court HUMAN SERVICES 240–669–5058, [email protected]. of Federal Claims No: 17–2019V (Catalogue of Federal Domestic Assistance 99. Sarah L. Neal and Richard C. Neal on National Institutes of Health Program Nos. 93.855, Allergy, Immunology, behalf of C. N., Deceased, Ocean City, and Transplantation Research; 93.856, New Jersey, Court of Federal Claims No: Center for Scientific Review; Amended Microbiology and Infectious Diseases 17–2020V Notice of Meeting Research, National Institutes of Health, HHS) 100. Sarah Neal, Ocean City, New Jersey, Court of Federal Claims No: 17–2021V Notice is hereby given of a change in Dated: January 29, 2018. the meeting of the Center for Scientific 101. Stephanie Myers, Towson, Maryland, Natasha M. Copeland, Court of Federal Claims No: 17–2025V Review Special Emphasis Panel, January 102. Danielle Gilmore, Bradenton, Florida, 23, 2018, 1:00 p.m. to January 23, 2018, Program Analyst, Office of Federal Advisory Committee Policy. Court of Federal Claims No: 17–2026V 5:00 p.m., National Institutes of Health, 103. Marissa Bialek, Washington, District of 6701 Rockledge Drive, Bethesda, MD [FR Doc. 2018–02037 Filed 1–31–18; 8:45 am] Columbia, Court of Federal Claims No: 20892 which was published in the BILLING CODE 4140–01–P 17–2030V 104. Maria Elmakky, Washington, District of Federal Register on January 03, 2018, 83 FR PG 387. Columbia, Court of Federal Claims No: DEPARTMENT OF HEALTH AND The meeting will be held on March 7, 17–2032V HUMAN SERVICES 105. Hoang-Hoa Nguyen on behalf of Tuyet 2018 at 1:00 and end at 3:30. The Mai, Wellesley Hills, Massachusetts, meeting location remains the same. The National Institutes of Health Court of Federal Claims No: 17–2051V meeting is closed to the public. 106. Angela Gornowicz, Cuyahoga Falls, Dated: January 29, 2018. National Institute on Aging; Amended Ohio, Court of Federal Claims No: 17– Notice of Meeting 2053V Melanie J. Pantoja, 107. Lucinda Kelley, Atlanta, Georgia, Court Program Analyst, Office of Federal Advisory Notice is hereby given of a change in of Federal Claims No: 17–2054V Committee Policy. the meeting of the Neuroscience of 108. Cheyenne Prescott, Englewood, New [FR Doc. 2018–02032 Filed 1–31–18; 8:45 am] Aging Review Committee, February 1, Jersey, Court of Federal Claims No: 17– BILLING CODE 4140–01–P 2055V 2018, 8:00 a.m. to February 2, 2018, 2:00 109. Sylvia Wiseman, Indianapolis, Indiana, p.m., Residence Inn Bethesda, 7335 Wisconsin Avenue, Bethesda, MD 20814 Court of Federal Claims No: 17–2060V DEPARTMENT OF HEALTH AND 110. Brian Anklam and Karen Anklam on which was published in the Federal behalf of N. A., Twin Falls, Idaho, Court HUMAN SERVICES Register on January 3, 2018, 83 FR 386. of Federal Claims No: 17–2061V National Institutes of Health The meeting notice is amended to 111. Dean Hrieche, Englewood, New Jersey, change the meeting location from Court of Federal Claims No: 17–2063V National Institute of Allergy and Residence Inn Bethesda, 7335 [FR Doc. 2018–02052 Filed 1–31–18; 8:45 am] Infectious Diseases; Notice of Closed Wisconsin Avenue, Bethesda, MD 20814 BILLING CODE 4165–15–P Meeting to Bethesda North Marriott Hotel & Conference Center, 5701 Marinelli Rd., Pursuant to section 10(d) of the Rockville MD 20852. The meeting is DEPARTMENT OF HEALTH AND Federal Advisory Committee Act, as closed to the public. HUMAN SERVICES amended, notice is hereby given of the following meeting. Dated: January 29, 2018. National Institutes of Health The meeting will be closed to the Melanie J. Pantoja, public in accordance with the Program Analyst, Office of Federal Advisory National Institute on Aging; Amended provisions set forth in sections Committee Policy. Notice of Meeting 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., [FR Doc. 2018–02035 Filed 1–31–18; 8:45 am] Notice is hereby given of a change in as amended. The grant applications and BILLING CODE 4140–01–P the meeting of the National Institute on the discussions could disclose Aging Special Emphasis Panel, February confidential trade secrets or commercial 16, 2018, 1:00 p.m. to February 16, property such as patentable material, DEPARTMENT OF HEALTH AND 2018, 4:00 p.m., National Institute on and personal information concerning HUMAN SERVICES individuals associated with the grant Aging, Gateway Building, 7201 National Institutes of Health Wisconsin Avenue, Suite 2W200, applications, the disclosure of which Bethesda, MD 20892 which was would constitute a clearly unwarranted National Institute of Environmental published in the Federal Register on invasion of personal privacy. Health Sciences; Notice of Closed January 11, 2018, 83 FR 1375. Name of Committee: National Institute of Meeting The meeting notice is amended to Allergy and Infectious Diseases Special change the date of the meeting from Emphasis Panel; NIH Research Project Grant Pursuant to section 10(d) of the February 16, 2018 to February 15, 2018. (Parent R01). Federal Advisory Committee Act, as

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amended, notice is hereby given of the as amended. The grant applications and Name of Committee: Center for Scientific following meeting. the discussions could disclose Review Special Emphasis Panel; The meeting will be closed to the confidential trade secrets or commercial Interventions and Mechanisms for Addiction. public in accordance with the property such as patentable material, Date: February 27, 2018. Time: 12:00 p.m. to 5:00 p.m. provisions set forth in sections and personal information concerning Agenda: To review and evaluate grant 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., individuals associated with the grant applications. as amended. The grant applications and applications, the disclosure of which Place: National Institutes of Health, 6701 the discussions could disclose would constitute a clearly unwarranted Rockledge Drive, Bethesda, MD 20892 confidential trade secrets or commercial invasion of personal privacy. (Telephone Conference Call). Contact Person: Marc Boulay, Ph.D., property such as patentable material, Name of Committee: Center for Scientific Scientific Review Officer, Center for and personal information concerning Review Special Emphasis Panel; Member Scientific Review, National Institutes of individuals associated with the grant Conflict: Risk Prevention and Social Health, 6701 Rockledge Drive, Room 3110, applications, the disclosure of which Development. MSC 7808, Bethesda, MD 20892, (301) 300– Date: February 23, 2018. would constitute a clearly unwarranted 6541, [email protected]. invasion of personal privacy. Time: 1:00 p.m. to 3:00 p.m. Agenda: To review and evaluate grant Name of Committee: Center for Scientific Name of Committee: National Institute of applications. Review Special Emphasis Panel; RFA Panel: Environmental Health Sciences Special Place: National Institutes of Health, 6701 Cellular and Molecular Biology of Complex Emphasis Panel; Mechanism For Time- Rockledge Drive, Bethesda, MD 20892 Brain Disorders. Sensitive Research Opportunities In (Telephone Conference Call). Date: March 1–2, 2018. Environmental Health Sciences (R21). Contact Person: Weijia Ni, Ph.D., Chief/ Time: 8:00 a.m. to 5:00 p.m. Date: February 15, 2018. Scientific Review Officer, Center for Agenda: To review and evaluate grant Time: 11:00 a.m. to 1:00 p.m. Scientific Review, National Institutes of applications. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 3100, Place: The Alexandrian, 480 King Street, applications. MSC 7808, Bethesda, MD 20892, 301–594– Alexandria, VA 22314. Place: NIEHS/National Institutes of Health, 3292, [email protected]. Contact Person: Brian H. Scott, Ph.D., Keystone Building, 530 Davis Drive, Room Name of Committee: Center for Scientific Scientific Review Officer, National Institutes 3118, Research Triangle Park, NC 27709. Review Special Emphasis Panel; PAR16– of Health, Center for Scientific Review, 6701 Contact Person: Janice B. Allen, Ph.D., 260—Methodology and Measurement in the Rockledge Drive, Bethesda, MD 20892, 301– Scientific Review Officer, Scientific Review Behavioral and Social Sciences. 827–7490, [email protected]. Branch, Division of Extramural Research and Date: February 26, 2018. Name of Committee: Center for Scientific Training, Nat. Institute of Environmental Time: 10:00 a.m. to 1:00 p.m. Review Special Emphasis Panel; Ocular Health Science, P.O. Box 12233, MD, EC–30/ Agenda: To review and evaluate grant Surface, Cornea, Anterior Segment Glaucoma Room 3170 B, Research Triangle Park, NC applications. and Refractive Error. 27709, 919–541–7556, [email protected]. Place: National Institutes of Health, 6701 Date: March 1–2, 2018. (Catalogue of Federal Domestic Assistance Rockledge Drive, Bethesda, MD 20892 Time: 8:00 a.m. to 5:00 p.m. Program Nos. 93.115, Biometry and Risk (Telephone Conference Call). Agenda: To review and evaluate grant Estimation—Health Risks from Contact Person: Delia Olufokunbi Sam, applications. Environmental Exposures; 93.142, NIEHS Ph.D., Scientific Review Officer, Center for Place: Hotel Palomar, 2121 P Street NW, Hazardous Waste Worker Health and Safety Scientific Review, National Institutes of Washington, DC 20037. Training; 93.143, NIEHS Superfund Health, 6701 Rockledge Drive, Room 3158, Contact Person: Kristin Kramer, Ph.D., Hazardous Substances—Basic Research and MSC 7770, Bethesda, MD 20892, 301–435– Scientific Review Officer, Center for Education; 93.894, Resources and Manpower 0684, [email protected]. Scientific Review, National Institutes of Development in the Environmental Health Name of Committee: Healthcare Delivery Health, 6701 Rockledge Drive, Room 5205, Sciences; 93.113, Biological Response to and Methodologies Integrated Review Group; MSC 7846, Bethesda, MD 20892, (301) 437– Environmental Health Hazards; 93.114, Health Disparities and Equity Promotion 0911, [email protected]. Study Section. Applied Toxicological Research and Testing, Name of Committee: Center for Scientific Date: February 27–28, 2018. National Institutes of Health, HHS) Review Special Emphasis Panel; Review of Time: 8:00 a.m. to 5:00 p.m. Agenda: To review and evaluate grant Neuroscience AREA Grant Applications. Dated: January 29, 2018. Date: March 1–2, 2018. Natasha M. Copeland, applications. Place: The Westin St. Francis, 335 Powell Time: 8:00 a.m. to 3:00 p.m. Program Analyst, Office of Federal Advisory Street, San Francisco, CA 94102. Agenda: To review and evaluate grant Committee Policy. Contact Person: Jessica Bellinger, Ph.D., applications. [FR Doc. 2018–02038 Filed 1–31–18; 8:45 am] Scientific Review Administrator, Center for Place: Holiday Inn Hotel & Suites Alexandria-Old Town, 625 First Street, BILLING CODE 4140–01–P Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 3158, Alexandria, VA 22314. Bethesda, MD 20892, 301–827–4446, Contact Person: Richard D. Crosland, [email protected]. Ph.D., Scientific Review Officer, Center for DEPARTMENT OF HEALTH AND Scientific Review, National Institutes of HUMAN SERVICES Name of Committee: Center for Scientific Review Special Emphasis Panel; Member Health, 6701 Rockledge Drive, Room 4190, MSC 7850, Bethesda, MD 20892, 301–694– National Institutes of Health Conflict: Musculoskeletal and Oral Biology. Date: February 27, 2018. 7084, [email protected]. Center for Scientific Review; Notice of Time: 2:00 p.m. to 4:00 p.m. Name of Committee: Center for Scientific Review Special Emphasis Panel; Closed Meetings Agenda: To review and evaluate grant applications. Fellowships: Behavioral Neuroscience. Pursuant to section 10(d) of the Place: National Institutes of Health, 6701 Date: March 1–2, 2018. Federal Advisory Committee Act, as Rockledge Drive, Bethesda, MD 20892 Time: 8:00 a.m. to 6:00 p.m. Agenda: To review and evaluate grant amended, notice is hereby given of the (Telephone Conference Call). Contact Person: Srikanth Ranganathan, applications. following meetings. Ph.D., Scientific Review Officer, Center for Place: Bahia Resort Hotel, 998 West The meetings will be closed to the Scientific Review, National Institutes of Mission Bay Drive, San Diego, CA 92109. public in accordance with the Health, 6701 Rockledge Drive, Room 4214, Contact Person: Mei Qin, MD, Ph.D., provisions set forth in sections MSC 7802, Bethesda, MD 20892, 301–435– Scientific Review Officer, Center for 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., 1787, [email protected]. Scientific Review, National Institutes of

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Health, 6701 Rockledge Drive, Room 5213, Contact Person: Peter J. Kozel, Ph.D., Time: 12:00 p.m. to 4:00 p.m. Bethesda, MD 20892, 301–875–2215, Scientific Review Officer, Center for Agenda: To review and evaluate grant [email protected]. Scientific Review, National Institutes of applications. Name of Committee: Center for Scientific Health, 6701 Rockledge Drive, Room 3139, Place: National Institutes of Health, 6701 Review Special Emphasis Panel; PAR Panel: Bethesda, MD 20892, 301–435–1116, kozelp@ Rockledge Drive, Bethesda, MD 20892. Fogarty Global Brain Disorders. mail.nih.gov. Contact Person: Maria Nurminskaya, Ph.D., Date: March 1–2, 2018. Name of Committee: Center for Scientific Scientific Review Officer, Center for Time: 8:00 a.m. to 5:00 p.m. Review Special Emphasis Panel; PAR: Scientific Review, National Institutes of Agenda: To review and evaluate grant Selected Topics in Transfusion Medicine. Health, Bethesda, MD 20892, (301) 435–1222, applications. Date: March 1–2, 2018. [email protected]. Place: St. Gregory Hotel, 2033 M Street Time: 10:00 a.m. to 6:00 p.m. (Catalogue of Federal Domestic Assistance NW, Washington, DC 20036. Agenda: To review and evaluate grant Program Nos. 93.306, Comparative Medicine; Contact Person: Suzan Nadi, Ph.D., applications. 93.333, Clinical Research, 93.306, 93.333, Scientific Review Officer, Center for Place: National Institutes of Health, 6701 93.337, 93.393–93.396, 93.837–93.844, Scientific Review, National Institutes of Rockledge Drive, Bethesda, MD 20892 93.846–93.878, 93.892, 93.893, National Health, 6701 Rockledge Drive, Room 5217B, (Virtual Meeting). Institutes of Health, HHS) MSC 7846, Bethesda, MD 20892, 301–435– Contact Person: Ai-Ping Zou, MD, Ph.D., Dated: January 26, 2018. 1259, [email protected]. Scientific Review Officer, Center for Sylvia L. Neal, Name of Committee: Center for Scientific Scientific Review, National Institutes of Review Special Emphasis Panel; Health, 6701 Rockledge Drive, Room 4118, Program Analyst, Office of Federal Advisory Fellowships: Neurodevelopment, Synaptic MSC 7814, Bethesda, MD 20892, 301–408– Committee Policy. Plasticity and Neurodegeneration. 9497, [email protected]. [FR Doc. 2018–01954 Filed 1–31–18; 8:45 am] Date: March 1–2, 2018. Name of Committee: Genes, Genomes, and BILLING CODE 4140–01–P Time: 8:00 a.m. to 5:00 p.m. Genetics Integrated Review Group; Genetics Agenda: To review and evaluate grant of Health and Disease Study Section. applications. Date: March 1–2, 2018. DEPARTMENT OF HEALTH AND Place: Holiday Inn Old Town, 625 First Time: 10:30 a.m. to 7:00 p.m. HUMAN SERVICES Street, Alexandria, VA 22314. Agenda: To review and evaluate grant Contact Person: Mary Schueler, Ph.D., applications. National Institutes of Health Scientific Review Officer, Center for Place: National Institutes of Health, 6701 Scientific Review, National Institutes of Rockledge Drive, Bethesda, MD 20892. Health, 6701 Rockledge Drive, Room 5214, Center for Scientific Review; Amended Contact Person: Cheryl M. Corsaro, Ph.D., Notice of Meeting MSC 7846, Bethesda, MD 20892, 301–451– Scientific Review Officer, Center for 0996, [email protected]. Scientific Review, National Institutes of Notice is hereby given of a change in Name of Committee: Center for Scientific Health, 6701 Rockledge Drive, Room 2204, the meeting of the Macromolecular Review Special Emphasis Panel; AIDS and MSC 7890, Bethesda, MD 20892, (301) 435– Structure and Function C Study Section, AIDS-related applications. 1045, [email protected]. Date: March 1, 2018. February 8, 2018, 8:00 a.m. to February Name of Committee: Center for Scientific Time: 8:00 a.m. to 5:00 p.m. 9, 2018, 5:00 p.m., The Darcy Hotel, Review Special Emphasis Panel; PAR 16– Agenda: To review and evaluate grant 1515 Rhode Island Avenue, 234: Accelerating the Pace of Drug Abuse applications. Research Using Existing Data. Washington, DC 20005 which was Place: Residence Inn Bethesda, 7335 published in the Federal Register on Wisconsin Avenue, Bethesda, MD 20814. Date: March 1, 2018. Time: 11:00 a.m. to 4:00 p.m. January 11, 2018, V 83 Pg. 1376. Contact Person: Jingsheng Tuo, Ph.D., The meeting will be held February 8, Scientific Review Officer, Center for Agenda: To review and evaluate grant Scientific Review, National Institutes of applications. 2018 at 8:00 a.m. and end 8:00 p.m. The Health, 6701 Rockledge Drive, Room 3196, Place: National Institutes of Health, 6701 meeting location remains the same. The Bethesda, MD 20892, 301–451–5953, tuoj@ Rockledge Drive, Bethesda, MD 20892 meeting is closed to the public. csr.nih.gov. (Virtual Meeting). Contact Person: Kate Fothergill, Ph.D., Dated: January 29, 2018. Name of Committee: Center for Scientific Scientific Review Officer, Center for Melanie J. Pantoja, Review Special Emphasis Panel; PAR Panel: Scientific Review, National Institutes of Program Analyst, Office of Federal Advisory Systems Science and Health in the Health, 6701 Rockledge Drive Room 3142, Committee Policy. Behavioral and Social Sciences. Bethesda, MD 20892, 301–435–2309, Date: March 1, 2018. [FR Doc. 2018–02033 Filed 1–31–18; 8:45 am] [email protected]. Time: 9:00 a.m. to 5:00 p.m. BILLING CODE 4140–01–P Agenda: To review and evaluate grant Name of Committee: Center for Scientific applications. Review Special Emphasis Panel; Member Place: National Institutes of Health, 6701 Conflict: Nursing and Related Clinical DEPARTMENT OF HEALTH AND Rockledge Drive, Bethesda, MD 20892. Sciences. HUMAN SERVICES Contact Person: Ping Wu, Ph.D., Scientific Date: March 1, 2018. Review Officer, HDM IRG, Center for Time: 2:00 p.m. to 6:00 p.m. National Institutes of Health Scientific Review, National Institutes of Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 3166, applications. Center for Scientific Review; Amended Bethesda, MD 20892, 301–451–8428, wup4@ Place: National Institutes of Health, 6701 Notice of Meeting csr.nih.gov. Rockledge Drive, Bethesda, MD 20892 Name of Committee: Healthcare Delivery (Telephone Conference Call). Notice is hereby given of a change in and Methodologies Integrated Review Group; Contact Person: Karin F. Helmers, Ph.D., the meeting of the Skeletal Muscle and Biostatistical Methods and Research Design Scientific Review Officer, Center for Exercise Physiology Study Section, Scientific Review, National Institutes of Study Section. February 8, 2018, 8:00 a.m. to February Date: March 1, 2018–March 2, 2018. Health, 6701 Rockledge Drive, Room 3166, MSC 7770, Bethesda, MD 20892, 301–254– 9, 2018, 6:00 p.m., Hilton Long Beach Time: 10:00 a.m. to 6:00 p.m. and Executive Center, 701 West Ocean Agenda: To review and evaluate grant 9975, [email protected]. applications. Name of Committee: Center for Scientific Boulevard, Long Beach, CA 90831 Place: National Institutes of Health, 6701 Review Special Emphasis Panel; Member which was published in the Federal Rockledge Drive, Bethesda, MD 20892 Conflict: Skeletal Biology and Disease. Register on January 19, 2018, 83 FR PG (Virtual Meeting). Date: March 1, 2018. 2807.

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The meeting will be held on February and directions around behavioral health DEPARTMENT OF HEALTH AND 7, 2018 at 6:00 p.m. and end February services and access for women and HUMAN SERVICES 8, 2018 9:00 p.m. The meeting location children. Substance Abuse and Mental Health remains the same. The meeting is closed The meeting is open to the public and Services Administration to the public. will be held at SAMHSA, 5600 Fishers Dated: January 29, 2018. Lane, Rockville, MD, 20857, in Current List of HHS-Certified Melanie J. Pantoja, Conference Room 5E29. Attendance by Laboratories and Instrumented Initial Program Analyst, Office of Federal Advisory the public will be limited to space Testing Facilities Which Meet Minimum Committee Policy. available. Interested persons may Standards To Engage in Urine Drug [FR Doc. 2018–02031 Filed 1–31–18; 8:45 am] present data, information, or views, Testing for Federal Agencies BILLING CODE 4140–01–P orally or in writing, on issues pending AGENCY: Substance Abuse and Mental before the committee. Written Health Services Administration, HHS. submissions should be forwarded to the ACTION: DEPARTMENT OF HEALTH AND contact person (below) by February 5, Notice. HUMAN SERVICES 2018. Oral presentations from the public SUMMARY: The Department of Health and National Institutes of Health will be scheduled at the conclusion of Human Services (HHS) notifies federal the meeting. Individuals interested in agencies of the laboratories and Center for Scientific Review; Amended making oral presentations are Instrumented Initial Testing Facilities Notice of Meeting encouraged to notify the contact person (IITF) currently certified to meet the on or before February 5, 2018. Five standards of the Mandatory Guidelines Notice is hereby given of a change in minutes will be allotted for each for Federal Workplace Drug Testing the meeting of the Nanotechnology presentation. Programs (Mandatory Guidelines). Study Section, February 8, 2018, 8:00 A notice listing all currently HHS- The meeting may be accesed via a.m. to February 9, 2018, 5:00 p.m., certified laboratories and IITFs is telephone. To attend on site, obtain the Baltimore Marriott Waterfront, 700 published in the Federal Register Aliceanna Street, Baltimore, MD 21202 call-in number and access code, submit during the first week of each month. If which was published in the Federal written or brief oral comments, or any laboratory or IITF certification is Register on January 5, 2018, V–83 Pg. request special accommodations for suspended or revoked, the laboratory or 683. persons with disabilities, please register IITF will be omitted from subsequent The meeting will be held on February on-line at http://nac.samhsa.gov/ lists until such time as it is restored to 7, 2018 at 7:00 p.m. and end February Registration/meetingsRegistration.aspx, full certification under the Mandatory 9, 2018 at 5:00. The meeting location or communicate with SAMHSA’s Guidelines. remains the same. The meeting is closed Designated Federal Officer, Ms. Valerie If any laboratory or IITF has to the public. Kolick (see contact information below). withdrawn from the HHS National Dated: January 29, 2018. Substantive meeting information and Laboratory Certification Program (NLCP) Melanie J. Pantoja, a roster of ACWS members may be during the past month, it will be listed Program Analyst, Office of Federal Advisory obtained either by accessing the at the end and will be omitted from the Committee Policy. SAMHSA Committees’ Web https:// monthly listing thereafter. This notice is also available on the [FR Doc. 2018–02034 Filed 1–31–18; 8:45 am] www.samhsa.gov/about-us/advisory- BILLING CODE 4140–01–P internet at http://www.samhsa.gov/ councils/meetings, or by contacting Ms. workplace. Kolick. FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF HEALTH AND Committee Name: Substance Abuse Giselle Hersh, Division of Workplace HUMAN SERVICES and Mental Health Services Programs, SAMHSA/CSAP, 5600 Administration Advisory Committee for Fishers Lane, Room 16N03A, Rockville, Substance Abuse and Mental Health Women’s Services (ACWS). Maryland 20857; 240–276–2600 (voice). Services Administration Date/Time/Type: Wednesday, SUPPLEMENTARY INFORMATION: The Advisory Committee for Women’s February 14, 2018, from: 9:00 a.m. to Department of Health and Human Services (ACWS); Notice of Meeting 4:45 p.m. EDT, Open. Services (HHS) notifies federal agencies Place: SAMHSA, 5600 Fishers Lane, of the laboratories and Instrumented Pursuant to Public Law 92–463, Conference Room 5E29, Rockville, Initial Testing Facilities (IITF) currently notice is hereby given of a meeting of Maryland 20857. certified to meet the standards of the the Substance Abuse and Mental Health Mandatory Guidelines for Federal Services Administration’s (SAMHSA) Contact: Valerie Kolick, Designated Workplace Drug Testing Programs Advisory Committee for Women’s Federal Official, SAMHSA’s Advisory (Mandatory Guidelines). The Mandatory Services (ACWS) on February 14, 2018. Committee for Women’s Services, 5600 Guidelines were first published in the The meeting will include discussions Fishers Lane, Rockville, MD 20857, Federal Register on April 11, 1988 (53 on assessing SAMHSA’s current Telephone: (240) 276–1738, Email: FR 11970), and subsequently revised in strategies related to women [email protected]. the Federal Register on June 9, 1994 (59 experiencing homelessness with FR 29908); September 30, 1997 (62 FR Carlos Castillo, behavioral health needs, and 51118); April 13, 2004 (69 FR 19644); SAMHSA’s strategies related to women Committee Management Officer, Substance November 25, 2008 (73 FR 71858); in the criminal justice system with Abuse and Mental Health, Services December 10, 2008 (73 FR 75122); April behavioral health needs. Additionally, Administration. 30, 2010 (75 FR 22809); and on January the ACWS will be speaking with the [FR Doc. 2018–02010 Filed 1–31–18; 8:45 am] 23, 2017 (82 FR 7920) Assistant Secretary of Mental Health BILLING CODE 4162–20–P The Mandatory Guidelines were and Substance Use regarding priorities initially developed in accordance with

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Executive Order 12564 and section 503 Dynacare *, 245 Pall Mall Street, Legacy Laboratory Services—MetroLab, of Public Law 100–71. The ‘‘Mandatory London, ONT, Canada N6A 1P4, 519– 225 NE 2nd Ave., Portland, OR 97232, Guidelines for Federal Workplace Drug 679–1630, (Formerly: Gamma- 503–413–5295/800–950–5295. Testing Programs,’’ as amended in the Dynacare Medical Laboratories). Minneapolis Veterans Affairs Medical revisions listed above, requires strict ElSohly Laboratories, Inc., 5 Industrial Center, Forensic Toxicology standards that laboratories and IITFs Park Drive, Oxford, MS 38655, 662– Laboratory, 1 Veterans Drive, must meet in order to conduct drug and 236–2609. Minneapolis, MN 55417, 612–725– specimen validity tests on urine Laboratory Corporation of America 2088, Testing for Veterans Affairs specimens for federal agencies. Holdings, 7207 N. Gessner Road, (VA) Employees Only. To become certified, an applicant Houston, TX 77040, 713–856–8288/ laboratory or IITF must undergo three 800–800–2387. National Toxicology Laboratories, Inc., rounds of performance testing plus an Laboratory Corporation of America 1100 California Ave., Bakersfield, CA on-site inspection. To maintain that Holdings, 69 First Ave., Raritan, NJ 93304, 661–322–4250/800–350–3515. certification, a laboratory or IITF must 08869, 908–526–2400/800–437–4986 One Source Toxicology Laboratory, Inc., participate in a quarterly performance (Formerly: Roche Biomedical 1213 Genoa-Red Bluff, Pasadena, TX testing program plus undergo periodic, Laboratories, Inc.). 77504, 888–747–3774 (Formerly: on-site inspections. Laboratory Corporation of America University of Texas Medical Branch, Laboratories and IITFs in the Holdings, 1904 TW Alexander Drive, Clinical Chemistry Division; UTMB applicant stage of certification are not to Research Triangle Park, NC 27709, Pathology-Toxicology Laboratory). be considered as meeting the minimum 919–572–6900/800–833–3984 requirements described in the HHS (Formerly: LabCorp Occupational Pacific Toxicology Laboratories, 9348 Mandatory Guidelines. A HHS-certified Testing Services, Inc., CompuChem DeSoto Ave., Chatsworth, CA 91311, laboratory or IITF must have its letter of Laboratories, Inc.; CompuChem 800–328–6942 (Formerly: Centinela certification from HHS/SAMHSA Laboratories, Inc., A Subsidiary of Hospital Airport Toxicology (formerly: HHS/NIDA), which attests Roche Biomedical Laboratory; Roche Laboratory). that it has met minimum standards. CompuChem Laboratories, Inc., A Pathology Associates Medical In accordance with the Mandatory Member of the Roche Group). Laboratories, 110 West Cliff Dr., Guidelines dated January 23, 2017 (82 Laboratory Corporation of America Spokane, WA 99204, 509–755–8991/ FR 7920), the following HHS-certified Holdings, 1120 Main Street, 800–541–7891x7. laboratories and IITFs meet the Southaven, MS 38671, 866–827–8042/ Phamatech, Inc., 15175 Innovation minimum standards to conduct drug 800–233–6339 (Formerly: LabCorp Drive, San Diego, CA 92128, 888– and specimen validity tests on urine Occupational Testing Services, Inc.; 635–5840. specimens: MedExpress/National Laboratory HHS-Certified Instrumented Initial Center). Quest Diagnostics Incorporated, 1777 Testing Facilities LabOne, Inc. d/b/a Quest Diagnostics, Montreal Circle, Tucker, GA 30084, 10101 Renner Blvd., Lenexa, KS 800–729–6432 (Formerly: SmithKline Dynacare, 6628 50th Street NW, 66219, 913–888–3927/800–873–8845 Beecham Clinical Laboratories; Edmonton, AB Canada T6B 2N7, 780– (Formerly: Quest Diagnostics SmithKline Bio-Science Laboratories). 784–1190 (Formerly: Gamma- Incorporated; LabOne, Inc.; Center for Dynacare Medical Laboratories). Quest Diagnostics Incorporated, 400 Laboratory Services, a Division of Egypt Road, Norristown, PA 19403, HHS-Certified Laboratories LabOne, Inc.). 610–631–4600/877–642–2216 MedTox Laboratories, Inc., 402 W. ACM Medical Laboratory, Inc., 160 (Formerly: SmithKline Beecham County Road D, St. Paul, MN 55112, Elmgrove Park, Rochester, NY 14624, Clinical Laboratories; SmithKline Bio- 651–636–7466/800–832–3244. 844–486–9226. Science Laboratories). Alere Toxicology Services, 1111 Newton * The Standards Council of Canada (SCC) voted Quest Diagnostics Incorporated, 8401 St., Gretna, LA 70053, 504–361–8989/ to end its Laboratory Accreditation Program for Fallbrook Ave., West Hills, CA 91304, 800–433–3823 (Formerly: Kroll Substance Abuse (LAPSA) effective May 12, 1998. 818–737–6370, (Formerly: SmithKline Laboratory Specialists, Inc., Laboratories certified through that program were Beecham Clinical Laboratories). Laboratory Specialists, Inc.). accredited to conduct forensic urine drug testing as Alere Toxicology Services, 450 required by U.S. Department of Transportation Redwood Toxicology Laboratory, 3700 (DOT) regulations. As of that date, the certification Westwind Blvd., Santa Rosa, CA Southlake Blvd., Richmond, VA of those accredited Canadian laboratories will 23236, 804–378–9130 (Formerly: continue under DOT authority. The responsibility 95403, 800–255–2159. Kroll Laboratory Specialists, Inc., for conducting quarterly performance testing plus STERLING Reference Laboratories, 2617 periodic on-site inspections of those LAPSA- Scientific Testing Laboratories, Inc.; accredited laboratories was transferred to the U.S. East L Street, Tacoma, Washington Kroll Scientific Testing Laboratories, HHS, with the HHS’ NLCP contractor continuing to 98421, 800–442–0438. Inc.). have an active role in the performance testing and U.S. Army Forensic Toxicology Drug Baptist Medical Center-Toxicology laboratory inspection processes. Other Canadian laboratories wishing to be considered for the NLCP Testing, Laboratory, 2490 Wilson St., Laboratory, 11401 I–30, Little Rock, may apply directly to the NLCP contractor just as Fort George G. Meade, MD 20755– AR 72209–7056, 501–202–2783 U.S. laboratories do. 5235, 301–677–7085, Testing for (Formerly: Forensic Toxicology Upon finding a Canadian laboratory to be Laboratory Baptist Medical Center). qualified, HHS will recommend that DOT certify Department of Defense (DoD) Clinical Reference Laboratory, Inc., 8433 the laboratory (Federal Register, July 16, 1996) as Employees Only. meeting the minimum standards of the Mandatory Quivira Road, Lenexa, KS 66215– Guidelines published in the Federal Register on Charles LoDico, 2802, 800–445–6917. January 23, 2017 (82 FR 7920). After receiving DOT Chemist. DrugScan, Inc., 200 Precision Road, certification, the laboratory will be included in the [FR Doc. 2018–01931 Filed 1–31–18; 8:45 am] Suite 200, Horsham, PA 19044, 800– monthly list of HHS-certified laboratories and participate in the NLCP certification maintenance BILLING CODE 4160–20–P 235–4890. program.

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DEPARTMENT OF HOMELAND below to the Office of Management and collected; and (d) minimize the burden SECURITY Budget for review and clearance. of the collection of information on those who are to respond, including through Collection of Information Federal Emergency Management the use of appropriate automated, Agency Title: Survivor Sheltering Assessment. electronic, mechanical, or other Type of Information Collection: [Docket ID: FEMA–2017–0030; OMB No. technological collection techniques or 1660–0142] Currently approved information other forms of information technology, collection with change. e.g., permitting electronic submission of Agency Information Collection OMB Number: OMB No. 1660–0142. responses. Form Titles and Numbers: FEMA Activities: Submission for OMB Dated: January 26, 2018. Form 09–0–42, Survivor Sheltering Review; Comment Request; Survivor William Holzerland, Sheltering Assessment Assessment. Abstract: When a Presidential Director, Information Management Divison, AGENCY: Federal Emergency federally declared disaster or emergency Mission Support, Federal Emergency Management Agency, DHS. Management Agency, Department of occurs, impacted survivors often find Homeland Security. ACTION: Notice and request for themselves temporarily housed in [FR Doc. 2018–02011 Filed 1–31–18; 8:45 am] comments. shelters until they are able to return to their homes or find other housing BILLING CODE 9111–23–P SUMMARY: The Federal Emergency solutions while they recovery. A FEMA Management Agency (FEMA) will employee will interview individual submit the information collection DEPARTMENT OF HOMELAND survivors located in shelters regarding SECURITY abstracted below to the Office of the registration status and housing Management and Budget for review and situation using an electronic copy of [Docket No. DHS–2017–0061] clearance in accordance with the FEMA Form 009–0–42 Survivor Private Sector Clearance Program, requirements of the Paperwork Sheltering Assessment to record the Cooperative Research and Reduction Act of 1995. The submission information in the Disaster Management Development Agreement, and will describe the nature of the Support Environment Cloud Classified Critical Infrastructure information collection, the categories of Environment (DMSE CE) database. The Protection Program Request respondents, the estimated burden (i.e., purpose of this survey is to help FEMA the time, effort and resources used by understand how best it can support AGENCY: Office of Infrastructure respondents to respond) and cost, and survivors as they transition out of Protection (IP), National Protection and the actual data collection instruments temporary shelters. No information Programs Directorate (NPPD), FEMA will use. given will be used to determine Department of Homeland Security DATES: Comments must be submitted on eligibility for assistance. Eligibility for (DHS). or before March 5, 2018. assistance will only be determined ACTION: 60-Day notice and request for ADDRESSES: Submit written comments through the separate registration comments; revised collection, 1670– on the proposed information collection process. 0013. to the Office of Information and Affected Public: Individuals and Regulatory Affairs, Office of Households. SUMMARY: DHS NPPD IP will submit the Management and Budget. Comments Estimated Number of Respondents: following information collection request should be addressed to the Desk Officer 31,200. (ICR) to the Office of Management and for the Department of Homeland Estimated Number of Responses: Budget (OMB) for review and clearance Security, Federal Emergency 31,200. in accordance with the Paperwork Management Agency, and sent via Estimated Total Annual Burden Reduction Act of 1995. Partnerships electronic mail to dhsdeskofficer@ Hours: 5,201. between the U.S. Government and the omb.eop.gov. Estimated Total Annual Respondent private sector at times necessitates the Cost: $181,203. sharing of classified information. The FOR FURTHER INFORMATION CONTACT: Estimated Respondents’ Operation Private Sector Clearance Program Requests for additional information or and Maintenance Costs: None. (PSCP), Cooperative Research And copies of the information collection Estimated Respondents’ Capital and Development Agreement (CRADA), and should be made to Director, Records Start-Up Costs: None. Classified Critical Infrastructure Management Division, 500 C Street SW, Estimated Total Annual Cost to the Protection Program (CCIPP) Request Washington, DC 20472, email address Federal Government: $273,356. Form facilitates this sharing by FEMA-Information-Collections- sponsoring security clearances for [email protected] or Leah Comments certain private sector partners. Davis, Program Manager, Disaster Comments may be submitted as DATES: Comments are encouraged and Management Support Environment, indicated in the ADDRESSES caption will be accepted until April 2, 2018. Recovery Technology Programs above. Comments are solicited to (a) ADDRESSES: You may submit comments, Division, 540–686–3227. evaluate whether the proposed data identified by docket number DHS– SUPPLEMENTARY INFORMATION: This collection is necessary for the proper 2017–0061, by one of the following proposed information collection performance of the agency, including methods: previously published in the Federal whether the information shall have • Federal eRulemaking Portal: http:// Register on November 22, 2017 at 82 FR practical utility; (b) evaluate the www.regulations.gov. Please follow the 55622 with a 60-day public comment accuracy of the agency’s estimate of the instructions for submitting comments. period. No comments were received burden of the proposed collection of • Email: [email protected]. Please regarding information collection 1660– information, including the validity of include docket number DHS–2017–0061 0142. The purpose of this notice is to the methodology and assumptions used; in the subject line of the message. notify the public that FEMA will submit (c) enhance the quality, utility, and • Mail: Written comments and the information collection abstracted clarity of the information to be questions about this Information

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Collection Request should be forwarded 13549, which authorize the collection of annual government cost has increased to DHS/NPPD/IP, ATTN: 1670–0013, this information. by $334,848. 245 Murray Lane SW, Mail Stop 0380, The PSCP is designed to facilitate This is a revised information Arlington, VA 20598–0640. access to security clearances for private collection. Instructions: All submissions received sector officials involved in the OMB is particularly interested in must include the words ‘‘Department of infrastructure protection mission. The comments that: Homeland Security’’ and the docket CISCP is designed to facilitate access to 1. Evaluate whether the proposed number for this action. Comments security clearances for private sector collection of information is necessary received will be posted without entities involved in cybersecurity for the proper performance of the alteration at http://www.regulations.gov, information sharing related to the functions of the agency, including including any personal information National Cybersecurity Communications whether the information will have provided. Integration Center (NCCIC) via CRADAs practical utility; Comments submitted in response to and for individuals via the CCIPP. 2. Evaluate the accuracy of the this notice may be made available to the CRADAs are agreements between the agency’s estimate of the burden of the public through relevant websites. For U.S. government and private entities for proposed collection of information, this reason, please do not include in joint research and development efforts, including the validity of the your comments information of a and can be used to create bi-directional methodology and assumptions used; confidential nature, such as sensitive information sharing frameworks 3. Enhance the quality, utility, and personal information or proprietary between DHS and private sector entities. clarity of the information to be information. If you send an email The CCIPP, commonly referred to as the collected; and comment, your email address will be ‘‘Hybrid,’’ is a tool through which DHS 4. Minimize the burden of the automatically captured and included as shares classified cybersecurity-related collection of information on those who part of the comment that is placed in the information with critical infrastructure are to respond, including through the public docket and made available on the partners. These partners are subject use of appropriate automated, internet. Please note that responses to matter experts within specific industries electronic, mechanical, or other this public comment request containing and have specialized knowledge not technological collection techniques or any routine notice about the available within DHS. Private citizens other forms of information technology, confidentiality of the communication do not receive monetary compensation e.g., permitting electronic submissions will be treated as public comments that for their time. DHS has created these of responses. may be made available to the public programs to sponsor clearances for these Title of Collection: Private Sector notwithstanding the inclusion of the individuals who are not employed by or Clearance Program, Cooperative routine notice. contracted with another Federal agency Research and Development Agreement, (the traditional means of obtaining a FOR FURTHER INFORMATION CONTACT: For and Classified Critical Infrastructure clearance) and must have clearances. specific questions related to collection Protection Program Request. Program changes require a revision of OMB Control Number: 1670–0013. activities, please contact Quintin the existing collection. These changes Whitaker at 703–235–9485 or at PSCP@ Frequency: Annually. include: Updating the title of the Affected Public: Private and Public HQ.DHS.GOV. collection, the form being used by SUPPLEMENTARY INFORMATION: Sector. CISCP, and updates to the form itself. Number of Respondents: 660. Partnerships between the U.S. The form will be used by the CISCP in Government and the private sector at Estimated Time per Respondent: 10 the same manner as the PSCP to sponsor minutes. times necessitate the sharing of private sector entities and individuals classified information. The PSCP and Total Burden Hours: 110 hours. for security clearances. The CISCP will Total Burden Cost (capital/startup): Cyber Information Sharing and increase the burden totals by 360 Collaboration Program (CISCP) facilitate $0. responses, 60 burden hours, and $6,155 Total Recordkeeping Burden: $0. this sharing by sponsoring security annual burden cost. For the PSCP, the Total Burden Cost (operating/ clearances for certain members of each burden estimates have decreased by 200 maintaining): $0. sector based on either their membership responses, 33 burden hours and $706 on a Sector Coordinating Council (SCC)/ annual burden cost based on actual David Epperson, association or their infrastructure responses received. As a result, the total Chief Information Officer. protection job-related duties. In order to burden estimates will increase overall [FR Doc. 2018–02009 Filed 1–31–18; 8:45 am] begin the process of approving a by 160 responses, 27 burden hours, BILLING CODE 9110–9P–P nominee to participate in the clearance $5,448 annual burden costs. program, DHS collects the nominee’s The changes to the form itself include: employment information and Personally adding CRADA and CCIPP to the title; DEPARTMENT OF THE INTERIOR Identifiable Information (PII). The adding drop down capabilities relevant nominee’s association/SCC membership for the CRADA and the CCIPP, adding Fish and Wildlife Service or employment information is reviewed justification guidance to the back of the for approval, and his or her PII is input form, and updating the wording of the [FWS–HQ–MB–2017–N168; FF09M13200/ into the Electronic Questionnaires for field titles and instructions to improve 189/FXMB12330900000; OMB Control Number 1018–New] Investigations Processing (e-QIP) clarity. The changes to the form itself system, the Office of Personnel will not change the burden estimates as Agency Information Collection Management’s (OPM) secure portal for the only field being added is a menu to Activities; Federal Migratory Bird investigation processing. distinguish the program type. Hunting and Conservation Stamp The U.S. Government is authorized to The annual government cost for the (Duck Stamp) and Junior Duck Stamp ask for this information under Section collection has increased by $242,850 Contests 201 of the Homeland Security Act of due to the addition of the CISCP and has 2002 (Pub. L. 107–296, 6 U.S.C. 121), increased by $91,998 for the PSCP due AGENCY: Fish and Wildlife Service, and Executive Orders 12968, 13526, and to updated wage rates. As a result, the Interior.

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ACTION: Notice of information collection; personal identifying information—may waterfowl, and philatelic authorities to request for comment. be made publicly available at any time. select each year’s winning design. While you can ask us in your comment Winners receive no compensation for SUMMARY: In accordance with the to withhold your personal identifying the work, except a pane of their stamps, Paperwork Reduction Act of 1995, we, information from public review, we but winners may sell prints of their the U.S. Fish and Wildlife Service cannot guarantee that we will be able to designs, which are sought by hunters, (Service, we) are proposing a new do so. conservationists, and art collectors. information collection. The Service selects five or fewer DATES: Interested persons are invited to Abstract species of waterfowl each year; each submit comments on or before April 2, History of the Federal Duck Stamp entry must employ one of the Service- 2018. designated species as the dominant On March 16, 1934, Congress passed, feature (defined as being in the ADDRESSES: Send your comments on the and President Franklin D. Roosevelt information collection request (ICR) by foreground and clearly the focus of signed, the Migratory Bird Hunting attention). Designs may also include mail to the Service Information Stamp Act (16 U.S.C. 718–718k). Collection Clearance Officer, U.S. Fish hunting dogs, hunting scenes, waterfowl Popularly known as the Duck Stamp decoys, national wildlife refuges as the and Wildlife Service, MS: BPHC, 5275 Act, it required all waterfowl hunters 16 Leesburg Pike, Falls Church, VA 22041– background of habitat scenes, non- _ years or older to buy a stamp annually. eligible species, or other scenes that 3803 (mail); or by email to Info Coll@ The revenue generated was originally fws.gov. Please reference OMB Control depict uses of the stamp for sporting, earmarked for the Department of conservation, and collecting purposes. Number 1018–Duck Stamp in the Agriculture, but 5 years later was subject line of your comments. Entries may be in any media EXCEPT transferred to the Department of the photography or computer-generated art. FOR FURTHER INFORMATION CONTACT: To Interior and the Service. request additional information about Designs must be the contestants’ In the years since its enactment, the original hand-drawn creation and may this ICR, contact Madonna L. Baucum, Federal Duck Stamp Program has Service Information Collection not be copied or duplicated from become one of the most popular and previously published art, including Clearance Officer, by email at Info_ successful conservation programs ever photographs, or from images in any [email protected], or by telephone at (703) initiated. Today, some 1.5 million format published on the internet. 358–2503. stamps are sold each year, and as of SUPPLEMENTARY INFORMATION: In 2017, Federal Duck Stamps have History of the Junior Duck Stamp accordance with the Paperwork generated more than $1 billion for the Contest Reduction Act of 1995, we provide the preservation of more than 6 million The Federal Junior Duck Stamp general public and other Federal acres of waterfowl habitat in the United Conservation and Design Program agencies with an opportunity to States. Numerous other birds, mammals, (Junior Duck Stamp Program) began in comment on new, proposed, revised, fish, reptiles, and amphibians have 1989 as an extension of the Migratory and continuing collections of similarly prospered because of habitat Bird Conservation and Hunting Stamp. information. This helps us assess the protection made possible by the The national Junior Duck Stamp art impact of our information collection program. An estimated one-third of the contest started in 1993, and the first requirements and minimize the public’s Nation’s endangered and threatened stamp design was selected from entries reporting burden. It also helps the species find food or shelter in refuges from eight participating states. The public understand our information preserved by Duck Stamp funds. program was recognized by Congress collection requirements and provide the Moreover, the protected wetlands help with the 1994 enactment of the Junior requested data in the desired format. dissipate storms, purify water supplies, Duck Stamp Conservation and Design We are soliciting comments on the store flood water, and nourish fish Program Act (16 U.S.C. 719). All 50 proposed ICR that is described below. hatchlings important for sport and states, Washington, DC, and 2 of the We are especially interested in public commercial fishermen. U.S. Territories currently participate in comment addressing the following the annual contest. issues: (1) Is the collection necessary to History of the Duck Stamp Contest The Junior Duck Stamp Program the proper functions of the Service; (2) Jay N. ‘‘Ding’’ Darling, a nationally introduces wetland and waterfowl will this information be processed and known political cartoonist for the Des conservation to students in kindergarten used in a timely manner; (3) is the Moines Register and a noted hunter and through high school. It crosses cultural, estimate of burden accurate; (4) how wildlife conservationist, designed the ethnic, social, and geographic might the Service enhance the quality, first Federal Duck Stamp at President boundaries to teach greater awareness utility, and clarity of the information to Roosevelt’s request. In subsequent years, and guide students in exploring our be collected; and (5) how might the noted wildlife artists submitted designs. nation’s natural resources. It is the Service minimize the burden of this The first Federal Duck Stamp Contest Service’s premier conservation collection on the respondents, including was opened in 1949 to any U.S. artist education initiative. through the use of information who wished to enter, and 65 artists The Junior Duck Stamp Program technology. submitted a total of 88 design entries. includes a dynamic art- and science- Comments that you submit in Since then, the contest has been known based curriculum. This non-traditional response to this notice are a matter of as the Federal Migratory Bird Hunting pairing of subjects brings new interest to public record. We will include or and Conservation Stamp Art (Duck both the sciences and the arts. The summarize each comment in our request Stamp) Contest and has attracted large program teaches students across the to OMB to approve this ICR. Before numbers of entrants. nation conservation through the arts, including your address, phone number, The Duck Stamp Contest (50 CFR part using scientific and wildlife observation email address, or other personal 91) remains the only art competition of principles to encourage visual identifying information in your its kind sponsored by the U.S. communication about what they learn. comment, you should be aware that Government. The Secretary of the Four curriculum guides, with activities your entire comment—including your Interior appoints a panel of noted art, and resources, were developed for use

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as a year-round study plan to assist attribute their interest and success to • Basic contact information (name, students in exploring science in real-life their early exposure to the Junior Duck address, phone numbers, and email situations. Stamp Program. address); Modeled after the Federal Duck • Age (to verify eligibility); Who Can Enter the Federal Duck Stamp Stamp Contest, the annual Junior Duck • Parent’s name and contact and Junior Duck Stamp Contests Stamp Art and Conservation Message information; Contest (Junior Duck Stamp Contest) The Duck Stamp Contest is open to all • Whether the student has a Social was developed as a visual assessment of U.S. citizens, nationals, and resident Security or VISA immigration number a student’s learning and progression. aliens who are at least 18 years of age (to verify eligibility to receive prizes); The Junior Duck Stamp Contest by June 1. Individuals enrolled in • Whether the student is a foreign encourages partnerships among Federal kindergarten through grade 12 may exchange student; and State government agencies, participate in the Junior Duck Stamp • Grade of student (so they may be nongovernment organizations, Contest. All eligible students are judged with their peers); businesses, and volunteers to help encouraged to participate in the Junior • The title, species, medium used, recognize and honor thousands of Duck Stamp Conservation and Design and conservation message associated teachers and students throughout the Program annual art and conservation with the drawing; United States for their participation in message contest as part of the program • Basic contact information for their conservation-related activities. Since curriculum through public, private, and teacher and school (name, address, 2000, the contest has received more homeschools, as well as through phone numbers, and email address); and than 478,000 entries. nonformal educational experiences such • Certification of authenticity. The winning artwork from the as those found in scouting, art studios, Students in Grades 7–12 and all national art contest serves as the design and nature centers. national level students are also required for the Junior Duck Stamp, which the to include citations for any resources Entry Requirements Service produces annually. This $5 they used to develop their designs. We stamp has become a much sought after Each entry in the Duck Stamp Contest use this information to verify that the collector’s item. One hundred percent of requires a completed entry form and an student has not plagiarized or copied the revenue from the sale of Junior Duck entry fee. Information required on the someone else’s work. The Service also stamps goes to support recognition and entry form includes: translates entry forms into other environmental education activities for • ‘‘Display, Participation & appropriate languages to increase the students who participate in the Reproduction Rights Agreement’’ understanding of the rules and what the program. More than $1.25 million in certification form; parents and students are signing. Junior Duck Stamp proceeds have been • Basic contact information (name, Title of Collection: Federal Migratory used to provide recognition, incentives, address, phone numbers, and email Bird Hunting and Conservation Stamp and scholarships to participating address); (Duck Stamp) and Junior Duck Stamp students, teachers, and schools. The Contests. • Date of birth (to verify eligibility); Program continues to educate youth OMB Control Number: 1018—NEW. • about land stewardship and the Species portrayed and medium Form Number: None. importance of connecting to their used; and Type of Review: Existing collection in natural worlds. Several students who • Name of hometown newspaper (for use without an OMB Control Number. have participated in the Junior Duck press coverage). Respondents/Affected Public: Stamp Program have gone on to become Each entry in the Junior Duck Stamp Individuals. full-time wildlife artists and Contest requires a completed entry form Respondent’s Obligation: Voluntary. conservation professionals; many that requests: Frequency of Collection: Annually.

Average Total number Average Total completion Activity of annual number of number of time per Total annual respondents submissions annual response burden hours each responses (min)

Duck Stamp Program Contest Entry Form

Individuals ...... 200 1 200 15 50

Junior Duck Stamp Program Contest Entry Form

Individuals ...... 25,000 1 25,000 *30 12,500

Totals ...... 25,200 1 25,200 ...... 12,550 * Burden for Junior Duck Stamp Program entry form is longer since both the parents and teacher must sign the form, and the student must provide references.

Total Estimated Annual Nonhour associated with the Junior Duck Stamp The authority for this action is the Burden Cost: $25,000.00 annually Contest submissions. Paperwork Reduction Act of 1995 (44 associated with entry fees required for An agency may not conduct or U.S.C. 3501 et seq.). contest entry submissions and mailing sponsor and a person is not required to costs for submissions to the Federal respond to a collection of information Duck Stamp Contest. There are no fees unless it displays a currently valid OMB control number.

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Dated: January 29, 2018. Hand-delivery: You may hand-deliver habitat incidental to relocation and Madonna L. Baucum, comments to the Atlanta or the Vero construction of a 1.3-mile section of Information Collection Clearance Officer, U.S. Beach Offices. Dude Ranch Road in Polk County, Fish and Wildlife Service. Email: You may email comments to Florida. The existing paved two-lane [FR Doc. 2018–01968 Filed 1–31–18; 8:45 am] [email protected]. Please include your county roadway is being relocated, per BILLING CODE 4333–15–P name and email address in your email permission of Polk County, to allow for message. If you do not receive an email sand mining within the existing Dude confirmation from us that we have Ranch Road footprint and lands DEPARTMENT OF THE INTERIOR received your email message, contact us adjacent to this footprint. The applicant directly at either telephone number in indicates that sand mining in this area Fish and Wildlife Service FOR FURTHER INFORMATION CONTACT. would not be financially feasible FOR FURTHER INFORMATION CONTACT: Mr. without relocation of the roadway. Polk [FWS–R4–ES–2017–N148; David Dell, Regional HCP Coordinator, County requires the applicant to FXES11140400000–178–FF04E00000] at the Atlanta Regional Office (see relocate the roadway segment to ADDRESSES); or Mr. John Wrublik, maintain access for local residents and Endangered and Threatened Wildlife; Project Manager, at the South Florida the public to the areas adjacent to the Incidental Take Permit Application, Ecological Services Office (see project site. Habitat Conservation Plan for Skink ADDRESSES); telephone: 772–469–4282. Habitat Conservation Plan Species, and Environmental If you use a telecommunications device The HCP includes measures to Assessment for Roadway Relocation for the deaf (TDD), please call the minimize and mitigate impacts to the in Polk County, FL Federal Relay Service at 800–877–8339. sand skink and the blue-tailed mole AGENCY: Fish and Wildlife Service, SUPPLEMENTARY INFORMATION: Under the skink resulting from the roadway Interior. Endangered Species Act of 1973, as relocation. To minimize impacts to ACTION: Notice of availability; request amended (16 U.S.C. 1531 et seq., ESA), these species and their habitat, the for comments. we, the U.S. Fish and Wildlife Service, footprint of the relocated roadway was announce the receipt and availability of reduced to the greatest extent SUMMARY: Under the Endangered a proposed habitat conservation plan practicable. The mitigation proposed by Species Act of 1973, as amended (ESA), (HCP), accompanying incidental take the applicant consists of the purchase of we, the Fish and Wildlife Service permit (ITP) application, and 24.2 credits (equaling 12.1 acres of skink (Service), announce the receipt and environmental assessment (EA) related habitat) from the Scrub Conservation availability of a proposed habitat to an application from Cemex Bank (SCB) in Highlands County, conservation plan and environmental Construction Materials Florida, LLC Florida. The SCB, which is a Service assessment related to an application for (applicant) for a permit to take sand approved conservation bank, will a permit associated with relocation of a skink (Neoseps reynoldsi) and blue- preserve and manage skink habitat in 1.3-mile segment of Dude Ranch Road tailed mole skink (Eumeces egregius perpetuity. (project) located in Polk County, lividus) (covered species), incidental to Florida. If issued, the permit would the relocation of a 1.3-mile segment of Public Comments authorize take of the threatened sand Dude Ranch Road in Polk County, We specifically request information, skink and blue-tailed mole skink Florida. We invite the public to views, and opinions from the public on incidental to project construction. We comment on these documents. our proposed Federal action, including invite the public to comment on these The applicants’ proposed HCP identification of any other aspects of or documents. describes the mitigation and impacts to the human environment not DATES: To ensure consideration, please minimization measures proposed to already identified in the EA prepared send your written comments by March address the impacts to the covered pursuant to the NEPA regulations at 40 5, 2018. species. Per the National Environmental CFR 1506.6. Further, we specifically Policy Act (42 U.S.C. 4321 et seq.; solicit information regarding the ADDRESSES: NEPA), the EA analyzes the take of the adequacy of the HCP per 50 CFR parts Obtaining Documents: Documents are covered species and impact to the 13 and 17. available for public inspection by environment. The applicant requests a Before including your address, phone appointment during regular business 5-year ITP under section 10(a)(1)(B) of number, email address, or other hours at either of the following the ESA, as amended (16 U.S.C. 1531 et personal identifying information in your locations: seq.). comment, you should be aware that • Atlanta Regional Office, Ecological Environmental Assessment your entire comment—including your Services, U.S. Fish and Wildlife Service, personal identifying information—may 1875 Century Boulevard, Atlanta, GA The EA assesses the likely be made publicly available at any time. 30345. environmental impacts associated with While you can ask us in your comment • South Florida Ecological Services the implementation of the activities, to withhold your personal identifying Office, U.S. Fish and Wildlife Service, including the environmental information from public review, we 1339 20th Street, Vero Beach, FL 32960. consequences of the no-action cannot guarantee that we will be able to Submitting Comments: Submit alternative, relocation of the roadway do so. comments by one of the following segment outside of the proposed methods. Please reference TE21091C–0 footprint, and the proposed action. The Covered Area in all comments. For additional proposed action alternative is issuance Sand skinks and blue-tailed mole guidance, please see Public Comments of the ITP and implementation of the skinks historically occurred within xeric under SUPPLEMENTARY INFORMATION. HCP as submitted by the applicant. The uplands throughout the sandy ridges of U.S. mail: You may mail comments to applicant anticipates destroying central Florida. The area encompassed the Fish and Wildlife Service’s Atlanta approximately 12.1 acres of occupied by the ITP application and HCP consists Regional Office. sand skink and blue-tailed mole skink of 12.1 acres of privately owned lands

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currently leased by the applicant in Polk FOR FURTHER INFORMATION CONTACT: Josh publicly available in their entirety at County, Florida. Alexander, BLM Chief Cadastral any time. While you can ask us to Surveyor for Montana; telephone: (406) withhold your personal identifying Next Steps 896–5123; email: [email protected]. information from public review, we We will evaluate the ITP application, Persons who use a telecommunications cannot guarantee that we will be able to including the HCP, and any comments device for the deaf (TDD) may call the do so. we receive to determine whether the Federal Relay Service (FRS) at (800) Authority: 43 U.S.C. Chapter 3. application meets the requirements of 877–8339 to contact the above section 10(a)(1)(B) of the ESA. We will individual during normal business Joshua F. Alexander, also evaluate whether a section hours. The FRS is available 24 hours a Chief Cadastral Surveyor for Montana. 10(a)(1)(B) ITP should be issued, as well day, 7 days a week, to leave a message [FR Doc. 2018–02022 Filed 1–31–18; 8:45 am] as conduct an intra-Service consultation or question with the above individual. BILLING CODE 4310–DN–P pursuant to section 7 of the ESA. We You will receive a reply during normal will use the results of this consultation business hours. and the above findings in our final SUPPLEMENTARY INFORMATION: The lands DEPARTMENT OF THE INTERIOR analysis to determine whether to issue surveyed are: the ITP. If we determine that the Bureau of Land Management Fifth Principal Meridian, North Dakota requirements are met, we will issue the T. 145 N, R. 102 W [18XL1109AF LLUT920000 L13100000 ITP number TE21091C–0 for the FI0000 25–7A] incidental take of the sand skink and the Secs. 34 and 35. blue-tailed mole skink to the applicant. A person or party who wishes to Notice of Proposed Class II protest an official filing of a plat of Authority Reinstatement of Terminated Oil and survey identified above must file a Gas Lease UTU77328, Utah We provide this notice under section written notice of protest with the BLM 10 of the ESA (16 U.S.C. 1531 et seq.) Chief Cadastral Surveyor for Montana at AGENCY: Bureau of Land Management, and NEPA regulations (40 CFR 1506.6). the address listed in the ADDRESSES Interior. section of this notice. The notice of ACTION: Notice of reinstatement. Mike Oetker, protest must identify the plat(s) of Acting Regional Director. survey that the person or party wishes SUMMARY: In accordance with Section 31 [FR Doc. 2018–02015 Filed 1–31–18; 8:45 am] to protest. The notice of protest must be of the Mineral Leasing Act of 1920, as BILLING CODE P received in the BLM Montana State amended, Berry Petroleum Company Office no later than the scheduled date timely filed a petition for reinstatement of the proposed official filing for the of oil and gas lease UTU77328 for lands DEPARTMENT OF THE INTERIOR plat(s) of survey being protested; if in Duchesne County, Utah, along with received after regular business hours, a all required rentals and royalties Bureau of Land Management notice of protest will be considered filed accruing from July 1, 2014, the date of [LLMT926000–18X–L14400000.BJ0000; the next business day. A written termination. The BLM proposes to MO #4500118138] statement of reasons in support of the reinstate the lease. protest, if not filed with the notice of DATES: The BLM is proposing to Notice of Proposed Filing of Plats of protest, must be filed with the BLM reinstate the lease on March 5, 2018. Survey: Montana Chief Cadastral Surveyor for Montana FOR FURTHER INFORMATION CONTACT: Kent within 30 calendar days after the notice AGENCY: Bureau of Land Management, Hoffman, Deputy State Director, Lands Interior. of protest is received. If a notice of protest of the plat(s) of and Minerals, Utah State Office, Bureau ACTION: Notice of proposed official survey is received prior to the of Land Management, 440 West 200 filing. scheduled date of official filing or South, Suite 500, Salt Lake City, Utah, during the 10 calendar day grace period 84101, phone: 801–539–4063, email: SUMMARY: The plats of surveys for the provided in 43 CFR 4.401(a) and the [email protected]. Persons who use a lands described in this notice are telecommunications device for the deaf scheduled to be officially filed 30 delay in filing is waived, the official filing of the plat(s) of survey identified (TDD) may call the Federal Relay calendar days after the date of this Service (FRS) at 1–800–877–8339 to publication in the BLM Montana State in the notice of protest will be stayed pending consideration of the protest. A contact the above individual during Office, Billings, Montana. The surveys, plat of survey will not be officially filed normal business hours. The FRS is which were executed at the request of until the next business day after all available 24 hours a day, 7 days a week, the BLM, are necessary for the timely protests have been dismissed or to leave a message or question with the management of these lands. otherwise resolved. above individual. You will receive a DATES: A person or party who wishes to If a notice of protest is received after reply during normal business hours. protest this decision must file a notice the scheduled date of official filing and SUPPLEMENTARY INFORMATION: The lessee of protest in time for it to be received the 10 calendar day grace period has agreed to new lease terms for rental in the BLM Montana State Office no provided in 43 CFR 4.401(a), the notice and royalty. The rental for UTU77328 later than 30 days after the date of this of protest will be untimely, may not be will increase to $5 per acre or fraction publication. considered, and may be dismissed. thereof and the royalty will increase to ADDRESSES: A copy of the plats may be Before including your address, phone 162⁄3 percent. The $500 administrative obtained from the Public Room at the number, email address, or other fee for the leases has been paid, and the BLM Montana State Office, 5001 personal identifying information in a lessee has reimbursed the Bureau of Southgate Drive, Billings, Montana notice of protest or statement of reasons, Land Management (BLM) for the cost of 59101, upon required payment. The you should be aware that the documents publishing this notice. plats may be viewed at this location at you submit—including your personal The following-described lands in no cost. identifying information—may be made Duchesne County, Utah, include:

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UTU77328 FOR FURTHER INFORMATION CONTACT: United States from Mexico provided Uintah Meridian, Utah Mary Messer (202–205–3193), Office of written notice to Commerce of their Investigations, U.S. International Trade withdrawal from the suspension T. 6 S., R 5 W., Sec. 7, excepting Patent No. 424727; Commission, 500 E Street SW, agreement on fresh tomatoes from Sec. 8, excepting Patent No. 424727; Washington, DC 20436. Hearing- Mexico. Because the suspension Sec. 18. impaired persons can obtain agreement no longer covered The area described contains 1,890.39 acres. information on this matter by contacting substantially all imports of fresh the Commission’s TDD terminal on 202– tomatoes from Mexico, Commerce As the lessee has met all the 205–1810. Persons with mobility terminated the suspension agreement, requirements for reinstatement of the impairments who will need special terminated the third five-year review of lease as set out in Section 31(d) and (e) assistance in gaining access to the the suspended investigation, and of the Mineral Leasing Act of 1920 (30 Commission should contact the Office resumed the antidumping investigation, U.S.C. 188), the BLM is proposing to of the Secretary at 202–205–2000. effective March 1, 2013 (78 FR 14771, reinstate the lease 30 days following March 7, 2013). On March 4, 2013, publication of this notice, with the General information concerning the Commission may also be obtained by Commerce signed a new agreement with effective date of July 1, 2014, subject to certain growers/exporters of fresh the increased rental and royalty rates accessing its internet server https:// www.usitc.gov. The public record for tomatoes from Mexico, and again cited above. The lease is also subject to suspended its investigation on these the following additional new terms and this proceeding may be viewed on the Commission’s electronic docket (EDIS) imports effective March 4, 2013 (78 FR conditions: 14967, March 8, 2013). The Commission (1) No Surface Occupancy at https://edis.usitc.gov. is now instituting a fourth review Stipulation—Anthro Mountain Habitat SUPPLEMENTARY INFORMATION: pursuant to section 751(c) of the Act, as Management Area; Background.—On November 1, 1996, (2) Cultural Resources Protection the Department of Commerce amended (19 U.S.C. 1675(c)), to Stipulation; (‘‘Commerce’’) suspended an determine whether termination of the (3) Threatened and Endangered antidumping duty investigation on suspended investigation would be likely to lead to continuation or recurrence of Species Act Stipulation; imports of fresh tomatoes from Mexico material injury to the domestic industry (4) Air Quality Mitigation Measures; (61 FR 56618). On October 1, 2001, within a reasonably foreseeable time. and Commerce initiated its first five-year Provisions concerning the conduct of (5) Federal Flood Risk Management review of the suspended investigation this proceeding may be found in the Standard Lease Notice. (66 FR 49926). On the basis of the Commission’s Rules of Practice and Authority: Mineral Leasing Act of 1920 withdrawal from the suspension Procedure at 19 CFR parts 201, subparts (30 U.S.C. 188) 43 CFR 3108.2–3. agreement by Mexican tomato growers A and B and 19 CFR part 207, subparts which accounted for a significant Edwin L. Roberson, A and F. The Commission will assess percentage of all fresh tomatoes State Director. the adequacy of interested party imported into the United States from responses to this notice of institution to [FR Doc. 2018–01944 Filed 1–31–18; 8:45 am] Mexico, Commerce terminated the BILLING CODE 4310–DQ–P determine whether to conduct a full suspension agreement, terminated the review or an expedited review. The first five-year review, and resumed the Commission’s determination in any antidumping investigation, effective expedited review will be based on the INTERNATIONAL TRADE July 30, 2002 (67 FR 50858, August 6, COMMISSION facts available, which may include 2002). On December 16, 2002, information provided in response to this [Investigation No. 731–TA–747 (Fourth Commerce suspended the antidumping notice. Review)] duty investigation on imports of fresh Definitions.—The following tomatoes from Mexico (67 FR 77044). Fresh Tomatoes From Mexico; definitions apply to this review: On November 1, 2007, Commerce (1) Subject Merchandise is the class or Institution of a Five-Year Review initiated its second five-year review of kind of merchandise that is within the AGENCY: United States International the suspended investigation (72 FR scope of the five-year review, as defined Trade Commission. 61861). Once again, based on the by Commerce. withdrawal from the suspension ACTION: Notice. (2) The Subject Country in this review agreement by Mexican tomato growers is Mexico. SUMMARY: The Commission hereby gives which accounted for a significant (3) The Domestic Like Product is the notice that it has instituted a review percentage of all fresh tomatoes domestically produced product or pursuant to the Tariff Act of 1930 (‘‘the imported into the United States from products which are like, or in the Act’’), as amended, to determine Mexico, Commerce terminated the absence of like, most similar in whether termination of the suspended suspension agreement, terminated the characteristics and uses with, the investigation on fresh tomatoes from second five-year review, and resumed Subject Merchandise. For the purpose of Mexico would be likely to lead to the antidumping investigation, effective the original preliminary investigation, continuation or recurrence of material January 18, 2008 (73 FR 2887, January the Commission defined the Domestic injury. Pursuant to the Act, interested 16, 2008). The antidumping Like Product as all fresh market parties are requested to respond to this investigation was again suspended tomatoes. Fresh market tomatoes do not notice by submitting the information effective January 22, 2008 (73 FR 4831, include processing tomatoes. specified below to the Commission. January 8, 2008). On December 3, 2012, (4) The Domestic Industry is the U.S. DATES: Instituted February 1, 2018. To Commerce initiated its third five-year producers as a whole of the Domestic be assured of consideration, the review of the suspended investigation Like Product, or those producers whose deadline for responses is March 5, 2018. (77 FR 71684). On February 28, 2013, collective output of the Domestic Like Comments on the adequacy of responses Mexican tomato growers/exporters Product constitutes a major proportion may be filed with the Commission by accounting for a significant percentage of the total domestic production of the April 16, 2018. of all fresh tomatoes imported into the product. For the purpose of the original

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preliminary investigation, the issued in the proceeding, provided that proceeding (as identified by either the Commission defined the Domestic the application is made no later than 21 public or APO service list as Industry as growers and packers of fresh days after publication of this notice in appropriate), and a certificate of service tomatoes. the Federal Register. Authorized must accompany the document (if you (5) An Importer is any person or firm applicants must represent interested are not a party to the proceeding you do engaged, either directly or through a parties, as defined in 19 U.S.C. 1677(9), not need to serve your response). parent company or subsidiary, in who are parties to the proceeding. A No response to this request for importing the Subject Merchandise into separate service list will be maintained information is required if a currently the United States from a foreign by the Secretary for those parties valid Office of Management and Budget manufacturer or through its selling authorized to receive BPI under the (‘‘OMB’’) number is not displayed; the agent. APO. OMB number is 3117 0016/USITC No. Participation in the proceeding and Certification.—Pursuant to section 18–5–405, expiration date June 30, public service list.—Persons, including 207.3 of the Commission’s rules, any 2020. Public reporting burden for the industrial users of the Subject person submitting information to the request is estimated to average 15 hours Merchandise and, if the merchandise is Commission in connection with this per response. Please send comments sold at the retail level, representative proceeding must certify that the regarding the accuracy of this burden consumer organizations, wishing to information is accurate and complete to estimate to the Office of Investigations, participate in the proceeding as parties the best of the submitter’s knowledge. In U.S. International Trade Commission, must file an entry of appearance with making the certification, the submitter 500 E Street SW, Washington, DC the Secretary to the Commission, as will acknowledge that information 20436. provided in section 201.11(b)(4) of the submitted in response to this request for Inability to provide requested Commission’s rules, no later than 21 information and throughout this information.—Pursuant to section days after publication of this notice in proceeding or other proceeding may be 207.61(c) of the Commission’s rules, any the Federal Register. The Secretary will disclosed to and used: (i) by the interested party that cannot furnish the maintain a public service list containing Commission, its employees and Offices, information requested by this notice in the names and addresses of all persons, and contract personnel (a) for the requested form and manner shall or their representatives, who are parties developing or maintaining the records notify the Commission at the earliest to the proceeding. of this or a related proceeding, or (b) in possible time, provide a full explanation Former Commission employees who internal investigations, audits, reviews, of why it cannot provide the requested are seeking to appear in Commission and evaluations relating to the information, and indicate alternative five-year reviews are advised that they programs, personnel, and operations of forms in which it can provide may appear in a review even if they the Commission including under 5 equivalent information. If an interested participated personally and U.S.C. Appendix 3; or (ii) by U.S. party does not provide this notification substantially in the corresponding government employees and contract (or the Commission finds the underlying original investigation or an personnel, solely for cybersecurity explanation provided in the notification earlier review of the same underlying purposes. All contract personnel will inadequate) and fails to provide a investigation. The Commission’s sign appropriate nondisclosure complete response to this notice, the designated agency ethics official has agreements. Commission may take an adverse advised that a five-year review is not the Written submissions.—Pursuant to inference against the party pursuant to same particular matter as the underlying section 207.61 of the Commission’s section 776(b) of the Act (19 U.S.C. original investigation, and a five-year rules, each interested party response to 1677e(b)) in making its determination in review is not the same particular matter this notice must provide the information the review. as an earlier review of the same specified below. The deadline for filing Information to Be Provided in underlying investigation for purposes of such responses is March 5, 2018. Response to This Notice of Institution: 18 U.S.C. 207, the post employment Pursuant to section 207.62(b) of the As used below, the term ‘‘firm’’ includes statute for Federal employees, and Commission’s rules, eligible parties (as any related firms. Commission rule 201.15(b) (19 CFR specified in Commission rule (1) The name and address of your firm 201.15(b)), 79 FR 3246 (Jan. 17, 2014), 207.62(b)(1)) may also file comments or entity (including World Wide Web 73 FR 24609 (May 5, 2008). concerning the adequacy of responses to address) and name, telephone number, Consequently, former employees are not the notice of institution and whether the fax number, and Email address of the required to seek Commission approval Commission should conduct an certifying official. to appear in a review under Commission expedited or full review. The deadline (2) A statement indicating whether rule 19 CFR 201.15, even if the for filing such comments is April 16, your firm/entity is an interested party corresponding underlying original 2018. All written submissions must under 19 U.S.C. 1677(9) and if so, how, investigation or an earlier review of the conform with the provisions of section including whether your firm/entity is a same underlying investigation was 201.8 of the Commission’s rules; any U.S. grower or packer of the Domestic pending when they were Commission submissions that contain BPI must also Like Product, a U.S. union or worker employees. For further ethics advice on conform with the requirements of group, a U.S. importer of the Subject this matter, contact Charles Smith, sections 201.6, 207.3, and 207.7 of the Merchandise, a foreign producer or Deputy Agency Ethics Official, at 202– Commission’s rules. The Commission’s exporter of the Subject Merchandise, a 205–3408. Handbook on E-Filing, available on the U.S. or foreign trade or business Limited disclosure of business Commission’s website at https:// association (a majority of whose proprietary information (BPI) under an edis.usitc.gov, elaborates upon the members are interested parties under administrative protective order (APO) Commission’s rules with respect to the statute), or another interested party and APO service list.—Pursuant to electronic filing. Also, in accordance (including an explanation). If you are a section 207.7(a) of the Commission’s with sections 201.16(c) and 207.3 of the union/worker group or trade/business rules, the Secretary will make BPI Commission’s rules, each document association, identify the firms in which submitted in this proceeding available filed by a party to the proceeding must your workers are employed or which are to authorized applicants under the APO be served on all other parties to the members of your association.

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(3) A statement indicating whether place and ready to operate), normal for the firms which are members of your your firm/entity is willing to participate operating levels (hours per week/weeks association. in this proceeding by providing per year), time for downtime, (a) Production (quantity) and, if information requested by the maintenance, repair, and cleanup, and a known, an estimate of the percentage of Commission. typical or representative product mix); total production of Subject Merchandise (4) A statement of the likely effects of (c) the quantity and value of U.S. in the Subject Country accounted for by the termination of the suspended commercial shipments of the Domestic your firm’s(s’) production; investigation on the Domestic Industry Like Product grown and/or packed in (b) Capacity (quantity) of your firm(s) in general and/or your firm/entity your U.S. facility(ies); to produce the Subject Merchandise in specifically. In your response, please (d) the quantity and value of U.S. the Subject Country (that is, the level of discuss the various factors specified in internal consumption/company production that your establishment(s) section 752(a) of the Act (19 U.S.C. transfers of the Domestic Like Product could reasonably have expected to 1675a(a)) including the likely volume of grown and/or packed in your U.S. attain during the year, assuming normal subject imports, likely price effects of facility(ies); and operating conditions (using equipment subject imports, and likely impact of (e) the value of (i) net sales, (ii) cost and machinery in place and ready to imports of Subject Merchandise on the of goods sold (COGS), (iii) gross profit, operate), normal operating levels (hours Domestic Industry. (iv) selling, general and administrative per week/weeks per year), time for (5) A list of all known and currently (SG&A) expenses, and (v) operating downtime, maintenance, repair, and operating U.S. growers and packers of income of the Domestic Like Product cleanup, and a typical or representative the Domestic Like Product. Identify any grown and/or packed in your U.S. product mix); and known related parties and the nature of facility(ies) (include both U.S. and (c) the quantity and value of your the relationship as defined in section export commercial sales, internal firm’s(s’) exports to the United States of 771(4)(B) of the Act (19 U.S.C. consumption, and company transfers) Subject Merchandise and, if known, an 1677(4)(B)). for your most recently completed fiscal estimate of the percentage of total (6) A list of all known and currently year (identify the date on which your exports to the United States of Subject operating U.S. importers of the Subject fiscal year ends). Merchandise from the Subject Country Merchandise and producers of the (10) If you are a U.S. importer or a accounted for by your firm’s(s’) exports. Subject Merchandise in the Subject trade/business association of U.S. (12) Identify significant changes, if Country that currently export or have importers of the Subject Merchandise any, in the supply and demand exported Subject Merchandise to the from the Subject Country, provide the conditions or business cycle for the United States or other countries after following information on your firm’s(s’) Domestic Like Product that have 2011. operations on that product during occurred in the United States or in the (7) A list of 3–5 leading purchasers in calendar year 2017 (report quantity data market for the Subject Merchandise in the U.S. market for the Domestic Like in pounds and value data in U.S. the Subject Country after 2011, and Product and the Subject Merchandise dollars). If you are a trade/business significant changes, if any, that are (including street address, World Wide association, provide the information, on likely to occur within a reasonably Web address, and the name, telephone an aggregate basis, for the firms which foreseeable time. Supply conditions to number, fax number, and Email address are members of your association. consider include technology; of a responsible official at each firm). (a) The quantity and value (landed, production methods; development (8) A list of known sources of duty-paid but not including efforts; ability to increase production information on national or regional antidumping duties) of U.S. imports (including the shift of production prices for the Domestic Like Product or and, if known, an estimate of the facilities used for other products and the the Subject Merchandise in the U.S. or percentage of total U.S. imports of use, cost, or availability of major inputs other markets. Subject Merchandise from the Subject into production); and factors related to (9) If you are a U.S. grower or packer Country accounted for by your firm’s(s’) the ability to shift supply among of the Domestic Like Product, provide imports; different national markets (including the following information on your firm’s (b) the quantity and value (f.o.b. U.S. barriers to importation in foreign operations on that product during port, including antidumping duties) of markets or changes in market demand calendar year 2017, except as noted U.S. commercial shipments of Subject abroad). Demand conditions to consider (report quantity data in pounds and Merchandise imported from the Subject include end uses and applications; the value data in U.S. dollars, f.o.b. plant). Country; and existence and availability of substitute If you are a union/worker group or (c) the quantity and value (f.o.b. U.S. products; and the level of competition trade/business association, provide the port, including antidumping duties) of among the Domestic Like Product information, on an aggregate basis, for U.S. internal consumption/company produced in the United States, Subject the firms in which your workers are transfers of Subject Merchandise Merchandise produced in the Subject employed/which are members of your imported from the Subject Country. Country, and such merchandise from association. (11) If you are a producer, an exporter, other countries. (a) Production (quantity) and, if or a trade/business association of (13) (OPTIONAL) A statement of known, an estimate of the percentage of producers or exporters of the Subject whether you agree with the above total U.S. production of the Domestic Merchandise in the Subject Country, definitions of the Domestic Like Product Like Product accounted for by your provide the following information on and Domestic Industry; if you disagree firm’s(s’) production; your firm’s(s’) operations on that with either or both of these definitions, (b) Capacity (quantity) of your firm to product during calendar year 2017 please explain why and provide produce the Domestic Like Product (that (report quantity data in pounds and alternative definitions. is, the level of production that your value data in U.S. dollars, landed and Authority: This proceeding is being establishment(s) could reasonably have duty-paid at the U.S. port but not conducted under authority of title VII of the expected to attain during the year, including antidumping duties). If you Tariff Act of 1930; this notice is published assuming normal operating conditions are a trade/business association, provide pursuant to section 207.61 of the (using equipment and machinery in the information, on an aggregate basis, Commission’s rules.

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By order of the Commission. folding gift boxes from China (72 FR Participation in the proceeding and Issued: January 19, 2018. 28025). Following the second five-year public service list.—Persons, including Lisa R. Barton, reviews by Commerce and the industrial users of the Subject Secretary to the Commission. Commission, effective March 5, 2013, Merchandise and, if the merchandise is [FR Doc. 2018–01348 Filed 1–31–18; 8:45 am] Commerce issued a continuation of the sold at the retail level, representative antidumping duty order on imports of consumer organizations, wishing to BILLING CODE 7020–02–P folding gift boxes from China (78 FR participate in the proceeding as parties 14269). The Commission is now must file an entry of appearance with INTERNATIONAL TRADE conducting a third review pursuant to the Secretary to the Commission, as COMMISSION section 751(c) of the Act, as amended provided in section 201.11(b)(4) of the (19 U.S.C. 1675(c)), to determine Commission’s rules, no later than 21 [Investigation No. 731–TA–921 (Third whether revocation of the order would days after publication of this notice in Review)] be likely to lead to continuation or the Federal Register. The Secretary will recurrence of material injury to the maintain a public service list containing Folding Gift Boxes From China; domestic industry within a reasonably the names and addresses of all persons, Institution of a Five-Year Review foreseeable time. Provisions concerning or their representatives, who are parties AGENCY: United States International the conduct of this proceeding may be to the proceeding. Trade Commission. found in the Commission’s Rules of Former Commission employees who ACTION: Notice. Practice and Procedure at 19 CFR parts are seeking to appear in Commission 201, subparts A and B and 19 CFR part five-year reviews are advised that they SUMMARY: The Commission hereby gives 207, subparts A and F. The Commission may appear in a review even if they notice that it has instituted a review will assess the adequacy of interested participated personally and pursuant to the Tariff Act of 1930 (‘‘the party responses to this notice of substantially in the corresponding Act’’), as amended, to determine institution to determine whether to underlying original investigation or an whether revocation of the antidumping conduct a full review or an expedited earlier review of the same underlying duty order on folding gift boxes from review. The Commission’s investigation. The Commission’s China would be likely to lead to determination in any expedited review designated agency ethics official has continuation or recurrence of material will be based on the facts available, advised that a five-year review is not the injury. Pursuant to the Act, interested which may include information same particular matter as the underlying parties are requested to respond to this provided in response to this notice. original investigation, and a five-year notice by submitting the information Definitions.—The following review is not the same particular matter specified below to the Commission. definitions apply to this review: as an earlier review of the same DATES: Instituted February 1, 2018. To (1) Subject Merchandise is the class or underlying investigation for purposes of be assured of consideration, the kind of merchandise that is within the 18 U.S.C. 207, the post employment deadline for responses is March 5, 2018. scope of the five-year review, as defined statute for Federal employees, and Comments on the adequacy of responses by the Department of Commerce. Commission rule 201.15(b) (19 CFR (2) The Subject Country in this review may be filed with the Commission by 201.15(b)), 79 FR 3246 (Jan. 17, 2014), is China. April 16, 2018. 73 FR 24609 (May 5, 2008). (3) The Domestic Like Product is the Consequently, former employees are not FOR FURTHER INFORMATION CONTACT: domestically produced product or required to seek Commission approval Mary Messer (202–205–3193), Office of products which are like, or in the to appear in a review under Commission Investigations, U.S. International Trade absence of like, most similar in rule 19 CFR 201.15, even if the Commission, 500 E Street SW, characteristics and uses with, the corresponding underlying original Washington, DC 20436. Hearing- Subject Merchandise. In its original investigation or an earlier review of the impaired persons can obtain determination and its expedited first same underlying investigation was information on this matter by contacting and second five-year review pending when they were Commission the Commission’s TDD terminal on 202– determinations, the Commission employees. For further ethics advice on 205–1810. Persons with mobility defined the Domestic Like Product as this matter, contact Charles Smith, impairments who will need special certain folding gift boxes for resale, Deputy Agency Ethics Official, at 202– assistance in gaining access to the coextensive with Commerce’s scope. 205–3408. Commission should contact the Office (4) The Domestic Industry is the U.S. Limited disclosure of business of the Secretary at 202–205–2000. producers as a whole of the Domestic proprietary information (BPI) under an General information concerning the Like Product, or those producers whose administrative protective order (APO) Commission may also be obtained by collective output of the Domestic Like and APO service list.—Pursuant to accessing its internet server https:// Product constitutes a major proportion section 207.7(a) of the Commission’s www.usitc.gov. The public record for of the total domestic production of the rules, the Secretary will make BPI this proceeding may be viewed on the product. In its original determination submitted in this proceeding available Commission’s electronic docket (EDIS) and its expedited first and second five- to authorized applicants under the APO at https://edis.usitc.gov. year review determinations, the issued in the proceeding, provided that SUPPLEMENTARY INFORMATION: Commission defined the Domestic the application is made no later than 21 Background.—On January 8, 2002, the Industry as all domestic producers of days after publication of this notice in Department of Commerce issued an certain folding gift boxes for resale. the Federal Register. Authorized antidumping duty order on imports of (5) An Importer is any person or firm applicants must represent interested folding gift boxes from China (67 FR engaged, either directly or through a parties, as defined in 19 U.S.C. 1677(9), 864). Following the first five-year parent company or subsidiary, in who are parties to the proceeding. A reviews by Commerce and the importing the Subject Merchandise into separate service list will be maintained Commission, effective May 18, 2007, the United States from a foreign by the Secretary for those parties Commerce issued a continuation of the manufacturer or through its selling authorized to receive BPI under the antidumping duty order on imports of agent. APO.

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Certification.—Pursuant to section 18–5–404, expiration date June 30, section 752(a) of the Act (19 U.S.C. 207.3 of the Commission’s rules, any 2020. Public reporting burden for the 1675a(a)) including the likely volume of person submitting information to the request is estimated to average 15 hours subject imports, likely price effects of Commission in connection with this per response. Please send comments subject imports, and likely impact of proceeding must certify that the regarding the accuracy of this burden imports of Subject Merchandise on the information is accurate and complete to estimate to the Office of Investigations, Domestic Industry. the best of the submitter’s knowledge. In U.S. International Trade Commission, (5) A list of all known and currently making the certification, the submitter 500 E Street SW, Washington, DC operating U.S. producers of the will acknowledge that information 20436. Domestic Like Product. Identify any submitted in response to this request for Inability to provide requested known related parties and the nature of information and throughout this information.—Pursuant to section the relationship as defined in section proceeding or other proceeding may be 207.61(c) of the Commission’s rules, any 771(4)(B) of the Act (19 U.S.C. disclosed to and used: (i) By the interested party that cannot furnish the 1677(4)(B)). Commission, its employees and Offices, information requested by this notice in (6) A list of all known and currently and contract personnel (a) for the requested form and manner shall operating U.S. importers of the Subject developing or maintaining the records notify the Commission at the earliest Merchandise and producers of the of this or a related proceeding, or (b) in possible time, provide a full explanation Subject Merchandise in the Subject internal investigations, audits, reviews, of why it cannot provide the requested Country that currently export or have and evaluations relating to the information, and indicate alternative exported Subject Merchandise to the programs, personnel, and operations of forms in which it can provide United States or other countries after the Commission including under 5 equivalent information. If an interested 2011. U.S.C. Appendix 3; or (ii) by U.S. party does not provide this notification (7) A list of 3–5 leading purchasers in government employees and contract (or the Commission finds the the U.S. market for the Domestic Like personnel, solely for cybersecurity explanation provided in the notification Product and the Subject Merchandise purposes. All contract personnel will inadequate) and fails to provide a (including street address, World Wide sign appropriate nondisclosure complete response to this notice, the Web address, and the name, telephone agreements. Commission may take an adverse number, fax number, and Email address Written submissions.—Pursuant to inference against the party pursuant to of a responsible official at each firm). section 207.61 of the Commission’s section 776(b) of the Act (19 U.S.C. (8) A list of known sources of rules, each interested party response to 1677e(b)) in making its determination in information on national or regional this notice must provide the information the review. prices for the Domestic Like Product or specified below. The deadline for filing Information to Be Provided in the Subject Merchandise in the U.S. or such responses is March 5, 2018. Response to This Notice of Institution: other markets. Pursuant to section 207.62(b) of the As used below, the term ‘‘firm’’ includes (9) If you are a U.S. producer of the Commission’s rules, eligible parties (as any related firms. Domestic Like Product, provide the specified in Commission rule (1) The name and address of your firm following information on your firm’s 207.62(b)(1)) may also file comments or entity (including World Wide Web operations on that product during concerning the adequacy of responses to address) and name, telephone number, calendar year 2017, except as noted the notice of institution and whether the fax number, and Email address of the (report quantity data in pieces and value Commission should conduct an certifying official. data in U.S. dollars, f.o.b. plant). If you expedited or full review. The deadline (2) A statement indicating whether are a union/worker group or trade/ for filing such comments is April 16, your firm/entity is an interested party business association, provide the 2018. All written submissions must under 19 U.S.C. 1677(9) and if so, how, information, on an aggregate basis, for conform with the provisions of section including whether your firm/entity is a the firms in which your workers are 201.8 of the Commission’s rules; any U.S. producer of the Domestic Like employed/which are members of your submissions that contain BPI must also Product, a U.S. union or worker group, association. conform with the requirements of a U.S. importer of the Subject (a) Production (quantity) and, if sections 201.6, 207.3, and 207.7 of the Merchandise, a foreign producer or known, an estimate of the percentage of Commission’s rules. The Commission’s exporter of the Subject Merchandise, a total U.S. production of the Domestic Handbook on E-Filing, available on the U.S. or foreign trade or business Like Product accounted for by your Commission’s website at https:// association (a majority of whose firm’s(s’) production; edis.usitc.gov, elaborates upon the members are interested parties under (b) Capacity (quantity) of your firm to Commission’s rules with respect to the statute), or another interested party produce the Domestic Like Product (that electronic filing. Also, in accordance (including an explanation). If you are a is, the level of production that your with sections 201.16(c) and 207.3 of the union/worker group or trade/business establishment(s) could reasonably have Commission’s rules, each document association, identify the firms in which expected to attain during the year, filed by a party to the proceeding must your workers are employed or which are assuming normal operating conditions be served on all other parties to the members of your association. (using equipment and machinery in proceeding (as identified by either the (3) A statement indicating whether place and ready to operate), normal public or APO service list as your firm/entity is willing to participate operating levels (hours per week/weeks appropriate), and a certificate of service in this proceeding by providing per year), time for downtime, must accompany the document (if you information requested by the maintenance, repair, and cleanup, and a are not a party to the proceeding you do Commission. typical or representative product mix); not need to serve your response). (4) A statement of the likely effects of (c) the quantity and value of U.S. No response to this request for the revocation of the antidumping duty commercial shipments of the Domestic information is required if a currently order on the Domestic Industry in Like Product produced in your U.S. valid Office of Management and Budget general and/or your firm/entity plant(s); (‘‘OMB’’) number is not displayed; the specifically. In your response, please (d) the quantity and value of U.S. OMB number is 3117 0016/USITC No. discuss the various factors specified in internal consumption/company

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transfers of the Domestic Like Product operating conditions (using equipment INTERNATIONAL TRADE produced in your U.S. plant(s); and and machinery in place and ready to COMMISSION (e) the value of (i) net sales, (ii) cost operate), normal operating levels (hours of goods sold (COGS), (iii) gross profit, [Investigation No. 731–TA–1103 (Second per week/weeks per year), time for Review)] (iv) selling, general and administrative downtime, maintenance, repair, and (SG&A) expenses, and (v) operating cleanup, and a typical or representative Certain Activated Carbon From China; income of the Domestic Like Product product mix); and Institution of a Five-Year Review produced in your U.S. plant(s) (include both U.S. and export commercial sales, (c) the quantity and value of your AGENCY: United States International internal consumption, and company firm’s(s’) exports to the United States of Trade Commission. transfers) for your most recently Subject Merchandise and, if known, an ACTION: Notice. completed fiscal year (identify the date estimate of the percentage of total on which your fiscal year ends). exports to the United States of Subject SUMMARY: The Commission hereby gives (10) If you are a U.S. importer or a Merchandise from the Subject Country notice that it has instituted a review trade/business association of U.S. accounted for by your firm’s(s’) exports. pursuant to the Tariff Act of 1930 (‘‘the importers of the Subject Merchandise (12) Identify significant changes, if Act’’), as amended, to determine from the Subject Country, provide the whether revocation of the antidumping any, in the supply and demand following information on your firm’s(s’) duty order on certain activated carbon conditions or business cycle for the operations on that product during from China would be likely to lead to calendar year 2017 (report quantity data Domestic Like Product that have continuation or recurrence of material in pieces and value data in U.S. dollars). occurred in the United States or in the injury. Pursuant to the Act, interested If you are a trade/business association, market for the Subject Merchandise in parties are requested to respond to this provide the information, on an aggregate the Subject Country after 2011, and notice by submitting the information basis, for the firms which are members significant changes, if any, that are specified below to the Commission. likely to occur within a reasonably of your association. DATES: Instituted February 1, 2018. To (a) The quantity and value (landed, foreseeable time. Supply conditions to be assured of consideration, the duty-paid but not including consider include technology; deadline for responses is March 5, 2018. antidumping duties) of U.S. imports production methods; development Comments on the adequacy of responses and, if known, an estimate of the efforts; ability to increase production may be filed with the Commission by percentage of total U.S. imports of (including the shift of production April 16, 2018. Subject Merchandise from the Subject facilities used for other products and the FOR FURTHER INFORMATION CONTACT: Country accounted for by your firm’s(s’) use, cost, or availability of major inputs Mary Messer (202–205–3193), Office of imports; into production); and factors related to Investigations, U.S. International Trade (b) the quantity and value (f.o.b. U.S. the ability to shift supply among Commission, 500 E Street SW, port, including antidumping duties) of different national markets (including Washington, DC 20436. Hearing- U.S. commercial shipments of Subject barriers to importation in foreign impaired persons can obtain Merchandise imported from the Subject markets or changes in market demand information on this matter by contacting Country; and abroad). Demand conditions to consider (c) the quantity and value (f.o.b. U.S. the Commission’s TDD terminal on 202– port, including antidumping duties) of include end uses and applications; the 205–1810. Persons with mobility U.S. internal consumption/company existence and availability of substitute impairments who will need special transfers of Subject Merchandise products; and the level of competition assistance in gaining access to the imported from the Subject Country. among the Domestic Like Product Commission should contact the Office (11) If you are a producer, an exporter, produced in the United States, Subject of the Secretary at 202–205–2000. or a trade/business association of Merchandise produced in the Subject General information concerning the producers or exporters of the Subject Country, and such merchandise from Commission may also be obtained by Merchandise in the Subject Country, other countries. accessing its internet server https:// provide the following information on www.usitc.gov. The public record for (13) (OPTIONAL) A statement of this proceeding may be viewed on the your firm’s(s’) operations on that whether you agree with the above product during calendar year 2017 Commission’s electronic docket (EDIS) definitions of the Domestic Like Product at https://edis.usitc.gov. (report quantity data in pieces and value and Domestic Industry; if you disagree SUPPLEMENTARY INFORMATION: data in U.S. dollars, landed and duty- with either or both of these definitions, paid at the U.S. port but not including Background.—On April 27, 2007, the please explain why and provide antidumping duties). If you are a trade/ Department of Commerce issued an alternative definitions. business association, provide the antidumping duty order on imports of information, on an aggregate basis, for Authority: This proceeding is being certain activated carbon from China (72 the firms which are members of your conducted under authority of title VII of the FR 20988). Following the first five-year association. Tariff Act of 1930; this notice is published reviews by Commerce and the (a) Production (quantity) and, if pursuant to section 207.61 of the Commission, effective March 18, 2013, known, an estimate of the percentage of Commission’s rules. Commerce issued a continuation of the total production of Subject Merchandise By order of the Commission. antidumping duty order on imports of certain activated carbon from China (78 in the Subject Country accounted for by Issued: January 19, 2018. your firm’s(s’) production; FR 16654). The Commission is now (b) Capacity (quantity) of your firm(s) Lisa R. Barton, conducting a second review pursuant to to produce the Subject Merchandise in Secretary to the Commission. section 751(c) of the Act, as amended the Subject Country (that is, the level of [FR Doc. 2018–01343 Filed 1–31–18; 8:45 am] (19 U.S.C. 1675(c)), to determine production that your establishment(s) BILLING CODE 7020–02–P whether revocation of the order would could reasonably have expected to be likely to lead to continuation or attain during the year, assuming normal recurrence of material injury to the

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domestic industry within a reasonably provided in section 201.11(b)(4) of the submitted in response to this request for foreseeable time. Provisions concerning Commission’s rules, no later than 21 information and throughout this the conduct of this proceeding may be days after publication of this notice in proceeding or other proceeding may be found in the Commission’s Rules of the Federal Register. The Secretary will disclosed to and used: (i) By the Practice and Procedure at 19 CFR parts maintain a public service list containing Commission, its employees and Offices, 201, subparts A and B and 19 CFR part the names and addresses of all persons, and contract personnel (a) for 207, subparts A and F. The Commission or their representatives, who are parties developing or maintaining the records will assess the adequacy of interested to the proceeding. of this or a related proceeding, or (b) in party responses to this notice of Former Commission employees who internal investigations, audits, reviews, institution to determine whether to are seeking to appear in Commission and evaluations relating to the conduct a full review or an expedited five-year reviews are advised that they programs, personnel, and operations of review. The Commission’s may appear in a review even if they the Commission including under 5 determination in any expedited review participated personally and U.S.C. Appendix 3; or (ii) by U.S. will be based on the facts available, substantially in the corresponding government employees and contract which may include information underlying original investigation or an personnel, solely for cybersecurity provided in response to this notice. earlier review of the same underlying purposes. All contract personnel will Definitions.—The following investigation. The Commission’s sign appropriate nondisclosure definitions apply to this review: designated agency ethics official has agreements. (1) Subject Merchandise is the class or advised that a five-year review is not the Written submissions.—Pursuant to kind of merchandise that is within the same particular matter as the underlying section 207.61 of the Commission’s scope of the five-year review, as defined original investigation, and a five-year rules, each interested party response to by the Department of Commerce. review is not the same particular matter this notice must provide the information (2) The Subject Country in this review as an earlier review of the same specified below. The deadline for filing is China. underlying investigation for purposes of such responses is March 5, 2018. (3) The Domestic Like Product is the 18 U.S.C. 207, the post employment Pursuant to section 207.62(b) of the domestically produced product or statute for Federal employees, and Commission’s rules, eligible parties (as products which are like, or in the Commission rule 201.15(b) (19 CFR specified in Commission rule absence of like, most similar in 201.15(b)), 79 FR 3246 (Jan. 17, 2014), 207.62(b)(1)) may also file comments characteristics and uses with, the 73 FR 24609 (May 5, 2008). concerning the adequacy of responses to Subject Merchandise. In its original Consequently, former employees are not the notice of institution and whether the determination and its full first five-year required to seek Commission approval Commission should conduct an review determination, the Commission to appear in a review under Commission expedited or full review. The deadline defined the Domestic Like Product to be rule 19 CFR 201.15, even if the for filing such comments is April 16, certain activated carbon, coextensive corresponding underlying original 2018. All written submissions must with Commerce’s scope of the investigation or an earlier review of the conform with the provisions of section investigation. same underlying investigation was 201.8 of the Commission’s rules; any (4) The Domestic Industry is the U.S. pending when they were Commission submissions that contain BPI must also producers as a whole of the Domestic employees. For further ethics advice on conform with the requirements of Like Product, or those producers whose this matter, contact Charles Smith, sections 201.6, 207.3, and 207.7 of the collective output of the Domestic Like Deputy Agency Ethics Official, at 202– Commission’s rules. The Commission’s Product constitutes a major proportion 205–3408. Handbook on E-Filing, available on the of the total domestic production of the Limited disclosure of business Commission’s website at https:// product. In its original determination, proprietary information (BPI) under an edis.usitc.gov, elaborates upon the the Commission defined the Domestic administrative protective order (APO) Commission’s rules with respect to Industry as all known producers of and APO service list.—Pursuant to electronic filing. Also, in accordance certain activated carbon, with the section 207.7(a) of the Commission’s with sections 201.16(c) and 207.3 of the exception of one firm, California rules, the Secretary will make BPI Commission’s rules, each document Carbon, which was excluded pursuant submitted in this proceeding available filed by a party to the proceeding must to the related parties provision. In the to authorized applicants under the APO be served on all other parties to the full first five-year review, the issued in the proceeding, provided that proceeding (as identified by either the Commission defined the Domestic the application is made no later than 21 public or APO service list as Industry as all known producers of days after publication of this notice in appropriate), and a certificate of service certain activated carbon. the Federal Register. Authorized must accompany the document (if you (5) An Importer is any person or firm applicants must represent interested are not a party to the proceeding you do engaged, either directly or through a parties, as defined in 19 U.S.C. 1677(9), not need to serve your response). parent company or subsidiary, in who are parties to the proceeding. A No response to this request for importing the Subject Merchandise into separate service list will be maintained information is required if a currently the United States from a foreign by the Secretary for those parties valid Office of Management and Budget manufacturer or through its selling authorized to receive BPI under the (‘‘OMB’’) number is not displayed; the agent. APO. OMB number is 3117 0016/USITC No. Participation in the proceeding and Certification.—Pursuant to section 18–5–403, expiration date June 30, public service list.—Persons, including 207.3 of the Commission’s rules, any 2020. Public reporting burden for the industrial users of the Subject person submitting information to the request is estimated to average 15 hours Merchandise and, if the merchandise is Commission in connection with this per response. Please send comments sold at the retail level, representative proceeding must certify that the regarding the accuracy of this burden consumer organizations, wishing to information is accurate and complete to estimate to the Office of Investigations, participate in the proceeding as parties the best of the submitter’s knowledge. In U.S. International Trade Commission, must file an entry of appearance with making the certification, the submitter 500 E Street SW, Washington, DC the Secretary to the Commission, as will acknowledge that information 20436.

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Inability to provide requested known related parties and the nature of internal consumption, and company information.—Pursuant to section the relationship as defined in section transfers) for your most recently 207.61(c) of the Commission’s rules, any 771(4)(B) of the Act (19 U.S.C. completed fiscal year (identify the date interested party that cannot furnish the 1677(4)(B)). on which your fiscal year ends). information requested by this notice in (6) A list of all known and currently (10) If you are a U.S. importer or a the requested form and manner shall operating U.S. importers of the Subject trade/business association of U.S. notify the Commission at the earliest Merchandise and producers of the importers of the Subject Merchandise possible time, provide a full explanation Subject Merchandise in the Subject from the Subject Country, provide the of why it cannot provide the requested Country that currently export or have following information on your firm’s(s’) information, and indicate alternative exported Subject Merchandise to the operations on that product during forms in which it can provide United States or other countries after calendar year 2017 (report quantity data equivalent information. If an interested 2011. in pounds and value data in U.S. party does not provide this notification (7) A list of 3–5 leading purchasers in dollars). If you are a trade/business (or the Commission finds the the U.S. market for the Domestic Like association, provide the information, on explanation provided in the notification Product and the Subject Merchandise an aggregate basis, for the firms which inadequate) and fails to provide a (including street address, World Wide are members of your association. complete response to this notice, the Web address, and the name, telephone (a) The quantity and value (landed, Commission may take an adverse number, fax number, and Email address duty-paid but not including inference against the party pursuant to of a responsible official at each firm). antidumping duties) of U.S. imports section 776(b) of the Act (19 U.S.C. (8) A list of known sources of and, if known, an estimate of the 1677e(b)) in making its determination in information on national or regional percentage of total U.S. imports of the review. prices for the Domestic Like Product or Subject Merchandise from the Subject Information to Be Provided in the Subject Merchandise in the U.S. or Country accounted for by your firm’s(s’) Response to This Notice of Institution: other markets. imports; As used below, the term ‘‘firm’’ includes (9) If you are a U.S. producer of the (b) the quantity and value (f.o.b. U.S. any related firms. Domestic Like Product, provide the port, including antidumping duties) of (1) The name and address of your firm following information on your firm’s U.S. commercial shipments of Subject or entity (including World Wide Web operations on that product during Merchandise imported from the Subject address) and name, telephone number, calendar year 2017, except as noted Country; and fax number, and Email address of the (report quantity data in pounds and (c) the quantity and value (f.o.b. U.S. certifying official. value data in U.S. dollars, f.o.b. plant). port, including antidumping duties) of (2) A statement indicating whether If you are a union/worker group or U.S. internal consumption/company your firm/entity is an interested party trade/business association, provide the transfers of Subject Merchandise under 19 U.S.C. 1677(9) and if so, how, information, on an aggregate basis, for imported from the Subject Country. including whether your firm/entity is a the firms in which your workers are (11) If you are a producer, an exporter, U.S. producer of the Domestic Like employed/which are members of your or a trade/business association of Product, a U.S. union or worker group, association. producers or exporters of the Subject a U.S. importer of the Subject (a) Production (quantity) and, if Merchandise in the Subject Country, Merchandise, a foreign producer or known, an estimate of the percentage of provide the following information on exporter of the Subject Merchandise, a total U.S. production of the Domestic your firm’s(s’) operations on that U.S. or foreign trade or business Like Product accounted for by your product during calendar year 2017 association (a majority of whose firm’s(s’) production; (report quantity data in pounds and members are interested parties under (b) Capacity (quantity) of your firm to value data in U.S. dollars, landed and the statute), or another interested party produce the Domestic Like Product (that duty-paid at the U.S. port but not (including an explanation). If you are a is, the level of production that your including antidumping duties). If you union/worker group or trade/business establishment(s) could reasonably have are a trade/business association, provide association, identify the firms in which expected to attain during the year, the information, on an aggregate basis, your workers are employed or which are assuming normal operating conditions for the firms which are members of your members of your association. (using equipment and machinery in association. (3) A statement indicating whether place and ready to operate), normal (a) Production (quantity) and, if your firm/entity is willing to participate operating levels (hours per week/weeks known, an estimate of the percentage of in this proceeding by providing per year), time for downtime, total production of Subject Merchandise information requested by the maintenance, repair, and cleanup, and a in the Subject Country accounted for by Commission. typical or representative product mix); your firm’s(s’) production; (4) A statement of the likely effects of (c) the quantity and value of U.S. (b) Capacity (quantity) of your firm(s) the revocation of the antidumping duty commercial shipments of the Domestic to produce the Subject Merchandise in order on the Domestic Industry in Like Product produced in your U.S. the Subject Country (that is, the level of general and/or your firm/entity plant(s); production that your establishment(s) specifically. In your response, please (d) the quantity and value of U.S. could reasonably have expected to discuss the various factors specified in internal consumption/company attain during the year, assuming normal section 752(a) of the Act (19 U.S.C. transfers of the Domestic Like Product operating conditions (using equipment 1675a(a)) including the likely volume of produced in your U.S. plant(s); and and machinery in place and ready to subject imports, likely price effects of (e) the value of (i) net sales, (ii) cost operate), normal operating levels (hours subject imports, and likely impact of of goods sold (COGS), (iii) gross profit, per week/weeks per year), time for imports of Subject Merchandise on the (iv) selling, general and administrative downtime, maintenance, repair, and Domestic Industry. (SG&A) expenses, and (v) operating cleanup, and a typical or representative (5) A list of all known and currently income of the Domestic Like Product product mix); and operating U.S. producers of the produced in your U.S. plant(s) (include (c) the quantity and value of your Domestic Like Product. Identify any both U.S. and export commercial sales, firm’s(s’) exports to the United States of

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Subject Merchandise and, if known, an ACTION: Notice. (19 CFR part 201), and part 207, estimate of the percentage of total subparts A and B (19 CFR part 207). exports to the United States of Subject SUMMARY: The Commission hereby gives Participation in the investigations and Merchandise from the Subject Country notice of the institution of investigations public service list.—Persons (other than accounted for by your firm’s(s’) exports. and commencement of preliminary petitioners) wishing to participate in the (12) Identify significant changes, if phase antidumping and countervailing investigations as parties must file an any, in the supply and demand duty investigation Nos. 701–TA–597 entry of appearance with the Secretary conditions or business cycle for the and 731–TA–1407 (Preliminary) to the Commission, as provided in Domestic Like Product that have pursuant to the Tariff Act of 1930 (‘‘the sections 201.11 and 207.10 of the occurred in the United States or in the Act’’) to determine whether there is a Commission’s rules, not later than seven market for the Subject Merchandise in reasonable indication that an industry days after publication of this notice in the Subject Country after 2011, and in the United States is materially the Federal Register. Industrial users significant changes, if any, that are injured or threatened with material and (if the merchandise under likely to occur within a reasonably injury, or the establishment of an investigation is sold at the retail level) foreseeable time. Supply conditions to industry in the United States is representative consumer organizations consider include technology; materially retarded, by reason of have the right to appear as parties in production methods; development imports of cast iron soil pipe from the Commission antidumping duty and efforts; ability to increase production China, provided for in statistical countervailing duty investigations. The (including the shift of production reporting number 7303.00.0030 of the Secretary will prepare a public service facilities used for other products and the Harmonized Tariff Schedule of the list containing the names and addresses use, cost, or availability of major inputs United States, that are alleged to be sold of all persons, or their representatives, into production); and factors related to in the United States at less than fair who are parties to these investigations the ability to shift supply among value and alleged to be subsidized by upon the expiration of the period for different national markets (including the Government of China. Unless the filing entries of appearance. barriers to importation in foreign Department of Commerce extends the Limited disclosure of business markets or changes in market demand time for initiation, the Commission proprietary information (BPI) under an abroad). Demand conditions to consider must reach a preliminary determination administrative protective order (APO) include end uses and applications; the in antidumping and countervailing duty and BPI service list.—Pursuant to existence and availability of substitute investigations in 45 days, or in this case section 207.7(a) of the Commission’s products; and the level of competition by March 12, 2018. The Commission’s rules, the Secretary will make BPI among the Domestic Like Product views must be transmitted to Commerce gathered in these investigations produced in the United States, Subject within five business days thereafter, or available to authorized applicants Merchandise produced in the Subject by March 19, 2018. representing interested parties (as defined in 19 U.S.C. 1677(9)) who are Country, and such merchandise from DATES: January 26, 2018. other countries. parties to the investigations under the (13) (OPTIONAL) A statement of FOR FURTHER INFORMATION CONTACT: APO issued in the investigations, whether you agree with the above Amelia Shister (202) 205–2047), Office provided that the application is made not later than seven days after the definitions of the Domestic Like Product of Investigations, U.S. International publication of this notice in the Federal and Domestic Industry; if you disagree Trade Commission, 500 E Street SW, Register. A separate service list will be with either or both of these definitions, Washington, DC 20436. Hearing- maintained by the Secretary for those please explain why and provide impaired persons can obtain parties authorized to receive BPI under alternative definitions. information on this matter by contacting the Commission’s TDD terminal on 202– the APO. Authority: This proceeding is being 205–1810. Persons with mobility Conference.—The Commission’s conducted under authority of title VII of the impairments who will need special Director of Investigations has scheduled Tariff Act of 1930; this notice is published assistance in gaining access to the a conference in connection with these pursuant to section 207.61 of the investigations for 9:30 a.m. on Friday, Commission’s rules. Commission should contact the Office of the Secretary at 202–205–2000. February 16, 2018, at the U.S. By order of the Commission. General information concerning the International Trade Commission Issued: January 19, 2018. Commission may also be obtained by Building, 500 E Street SW, Washington, Lisa R. Barton, accessing its internet server https:// DC. Requests to appear at the conference Secretary to the Commission. www.usitc.gov. The public record for should be emailed to preliminary [FR Doc. 2018–01342 Filed 1–31–18; 8:45 am] these investigations may be viewed on [email protected] (DO NOT FILE BILLING CODE 7020–02–P the Commission’s electronic docket ON EDIS) on or before February 14, (EDIS) at https://edis.usitc.gov. 2018. Parties in support of the imposition of countervailing and SUPPLEMENTARY INFORMATION: INTERNATIONAL TRADE antidumping duties in these COMMISSION Background.—These investigations investigations and parties in opposition are being instituted, pursuant to to the imposition of such duties will [Investigation Nos. 701–TA–597 and 731– sections 703(a) and 733(a) of the Tariff each be collectively allocated one hour TA–1407 (Preliminary)] Act of 1930 (19 U.S.C. 1671b(a) and within which to make an oral 1673b(a)), in response to a petition filed Cast Iron Soil Pipe From China; presentation at the conference. A on January 26, 2018, by the Cast Iron Institution of Antidumping and nonparty who has testimony that may Soil Pipe Institute, Mundelein, Illinois. Countervailing Duty Investigations and aid the Commission’s deliberations may Scheduling of Preliminary Phase For further information concerning request permission to present a short Investigations the conduct of these investigations and statement at the conference. rules of general application, consult the Written submissions.—As provided in AGENCY: United States International Commission’s Rules of Practice and sections 201.8 and 207.15 of the Trade Commission. Procedure, part 201, subparts A and B Commission’s rules, any person may

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submit to the Commission on or before Commission in connection with these Issued: January 26, 2018. February 22, 2018, a written brief investigations must certify that the Lisa R. Barton, containing information and arguments information is accurate and complete to Secretary to the Commission. pertinent to the subject matter of the the best of the submitter’s knowledge. In [FR Doc. 2018–01965 Filed 1–31–18; 8:45 am] investigations. Parties may file written making the certification, the submitter BILLING CODE 7020–02–P testimony in connection with their will acknowledge that any information presentation at the conference. All that it submits to the Commission written submissions must conform with during these investigations may be DEPARTMENT OF JUSTICE the provisions of section 201.8 of the disclosed to and used: (i) By the Commission’s rules; any submissions Commission, its employees and Offices, Drug Enforcement Administration that contain BPI must also conform with and contract personnel (a) for [Docket No. DEA–392] the requirements of sections 201.6, developing or maintaining the records 207.3, and 207.7 of the Commission’s of these or related investigations or rules. The Commission’s Handbook on Bulk Manufacturer of Controlled reviews, or (b) in internal investigations, E-Filing, available on the Commission’s Substances Registration website at https://edis.usitc.gov, audits, reviews, and evaluations relating ACTION: elaborates upon the Commission’s rules to the programs, personnel, and Notice of registration. with respect to electronic filing. operations of the Commission including under 5 U.S.C. Appendix 3; or (ii) by SUMMARY: Registrants listed below have In accordance with sections 201.16(c) U.S. government employees and applied for and been granted and 207.3 of the rules, each document registration by the Drug Enforcement contract personnel, solely for filed by a party to the investigations Administration as bulk manufacturers of cybersecurity purposes. All contract must be served on all other parties to various classes of schedule I and II the investigations (as identified by personnel will sign appropriate controlled substances. nondisclosure agreements. either the public or BPI service list), and SUPPLEMENTARY INFORMATION: The a certificate of service must be timely Authority: These investigations are being companies listed below applied to be filed. The Secretary will not accept a conducted under authority of title VII of the registered as bulk manufacturers of document for filing without a certificate Tariff Act of 1930; this notice is published various basic classes of controlled of service. pursuant to section 207.12 of the substances. Information on previously Certification.—Pursuant to section Commission’s rules. published notices is listed in the table 207.3 of the Commission’s rules, any By order of the Commission. below. No comments or objections were person submitting information to the submitted for these notices.

Company FR Docket Published

Euticals, Inc ...... 82 FR 50159 October 30, 2017. Cerilliant Corporation ...... 82 FR 51439 November 6, 2017. Cambrex Charles City ...... 82 FR 51642 November 7, 2017.

The Drug Enforcement 1301.33, the DEA has granted a SUMMARY: Registrants listed below have Administration (DEA) has considered registration as a bulk manufacturer to applied for and been granted the factors in 21 U.S.C. 823(a) and the above listed persons. registration by the Drug Enforcement determined that the registration of these Dated: January 26, 2018. Administration as importers of various registrants to manufacture the Susan A. Gibson, classes of schedule I or II controlled applicable basic classes of controlled substances. substances is consistent with the public Deputy Assistant Administrator. interest and with United States [FR Doc. 2018–02007 Filed 1–31–18; 8:45 am] SUPPLEMENTARY INFORMATION: The obligations under international treaties, BILLING CODE 4410–09–P companies listed below applied to be conventions, or protocols in effect on registered as importers of various basic May 1, 1971. The DEA investigated each DEPARTMENT OF JUSTICE classes of controlled substances. of the company’s maintenance of Information on previously published effective controls against diversion by Drug Enforcement Administration notices is listed in the table below. No inspecting and testing each company’s comments or objections were submitted [Docket No. DEA–392] physical security systems, verifying and no requests for hearing were each company’s compliance with state submitted for these notices. and local laws, and reviewing each Importer of Controlled Substances company’s background and history. Registration Therefore, pursuant to 21 U.S.C. ACTION: Notice of registration. 823(a), and in accordance with 21 CFR

Company FR Docket Published

ABBVIE, LTD ...... 82 FR 56994 December 1, 2017. VHG Labs DBA LGC Standard Warehouse ...... 82 FR 58654 December 13, 2017.

The Drug Enforcement the factors in 21 U.S.C. 823, 952(a) and registration of the listed registrants to Administration (DEA) has considered 958(a) and determined that the import the applicable basic classes of

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schedule I or II controlled substances is one fourth of the total number of ovens; NATIONAL SCIENCE FOUNDATION consistent with the public interest and interim and permanent reductions in with United States obligations under the annual bypass venting permit limit; Agency Information Collection international treaties, conventions, or enhanced monitoring and testing Activities: Comment Request protocols in effect on May 1, 1971. The requirements, including solar AGENCY: National Science Foundation. DEA investigated each company’s occultation flux testing; implementation maintenance of effective controls of preventive operations and ACTION: Submission for OMB Review; against diversion by inspecting and maintenance plans to minimize Comment Request. testing each company’s physical conditions that might cause excess SUMMARY: The National Science security systems, verifying each emissions; root cause failure analyses Foundation (NSF) has submitted the company’s compliance with state and for bypass venting incidents and following information collection local laws, and reviewing each repeated coke oven leaks; and two company’s background and history. requirement to OMB for review and Therefore, pursuant to 21 U.S.C. mitigation measures, dual operation of clearance under the Paperwork 952(a) and 958(a), and in accordance the spray dryer absorbers to achieve a Reduction Act of 1995. This is the with 21 CFR 1301.34, the DEA has reduction in sulfur dioxide emissions second notice for public comment; the granted a registration as an importer for from the facility and maintenance of first was published in the Federal schedule I or II controlled substances to two quench towers to achieve a Register on November 30, 2017, and no the above listed persons. reduction in particulate matter comments were received. NSF is emissions. Dated: January 26, 2018. forwarding the proposed renewal Susan A. Gibson, The publication of this notice opens submission to the Office of Management Deputy Assistant Administrator. a period for public comment on the and Budget (OMB) for clearance simultaneously with the publication of [FR Doc. 2018–02006 Filed 1–31–18; 8:45 am] Consent Decree. Comments should be addressed to the Assistant Attorney this second notice. The full submission BILLING CODE 4410–09–P General, Environment and Natural may be found at: http:// Resources Division, and should refer to www.reginfo.gov/public/do/PRAMain. DEPARTMENT OF JUSTICE United States and State of Indiana v. Comments: Comments are invited on Indiana Harbor Coke Company, et al., (a) whether the proposed collection of Notice of Lodging of Proposed D.J. Ref. No. 90–5–2–1–08555/1. All information is necessary for the proper Consent Decree Under the Clean Air comments must be submitted no later performance of the functions of the Act than thirty (30) days after the NSF, including whether the information publication date of this notice. shall have practical utility; (b) the On January 25, 2018, the Department accuracy of the NSF’s estimate of the of Justice lodged a proposed Consent Comments may be submitted either by email or by mail: burden of the proposed collection of Decree with the United States District information; (c) ways to enhance the Court for the Northern District of quality, utility, and clarity of the Indiana in the lawsuit entitled United To submit Send them to: information on respondents, including States and State of Indiana v. Indiana comments: through the use of automated collection Harbor Coke Company, et al., Civil By email ...... pubcomment-ees.enrd@ techniques or other forms of information Action No. 18–cv–35. usdoj.gov. The Complaint seeks civil penalties technology; and (d) ways to minimize By mail ...... Assistant Attorney General, the burden of the collection of and injunctive relief for alleged U.S. DOJ—ENRD, P.O. violations of the Clean Air Act (‘‘CAA’’) information on those who are to Box 7611, Washington, respond, including through the use of and Title 326 of the Indiana D.C. 20044–7611. Administrative Code against Indiana appropriate automated, electronic, mechanical, or other technological Harbor Coke Company, its corporate During the public comment period, parent SunCoke Energy, Inc., and collection techniques or other forms of the Consent Decree may be examined information technology. Cokenergy, LLC (collectively, the and downloaded at this Justice ‘‘Defendants’’), the owners and/or FOR FURTHER INFORMATION CONTACT: Department website: https:// operators of the coking facility, located Comments should be addressed to: www.justice.gov/enrd/consent-decrees. in East Chicago, Indiana. The Complaint Office of Information and Regulatory We will provide a paper copy of the alleges violations of the CAA and Title Affairs of OMB, Attention: Desk Officer Consent Decree upon written request 326 of the Indiana Administrative Code for National Science Foundation, 725 and payment of reproduction costs. relating primarily to excess emissions of 7th Street NW, Room 10235, coke oven gases from leaking coke ovens Please mail your request and payment Washington, DC 20503, and to Suzanne and bypass vent stacks. to: Consent Decree Library, U.S. DOJ— H. Plimpton, Reports Clearance Officer, Under the proposed Consent Decree, ENRD, P.O. Box 7611, Washington, DC National Science Foundation, 2415 Defendants would be jointly and 20044–7611. Eisenhower Avenue, Room W18000 severally liable for a $5 million civil Please enclose a check or money order Alexandria, Virginia 22314, or send penalty, to be split evenly between the for $12.40 (25 cents per page email to [email protected]. Copies of the United States and Indiana, and reproduction cost) payable to the United submission may be obtained by calling Cokenergy would perform a lead States Treasury. Ms. Plimpton at (703) 292–7556. abatement supplemental environmental Individuals who use a project at a cost of $250,000. The Randall M. Stone, telecommunications device for the deaf proposed Consent Decree also would Acting Assistant Section Chief, (TDD) may call the Federal Information require comprehensive coke oven Environmental Enforcement Section, Relay Service (FIRS) at 1800–877–8339, rebuilds to address oven leaks, Environment and Natural Resources Division. which is accessible 24 hours a day, 7 including potential permanent shut [FR Doc. 2018–01942 Filed 1–31–18; 8:45 am] days a week, 365 days a year (including down of an entire battery, representing BILLING CODE 4410–15–P federal holidays).

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NSF may not conduct or sponsor a Estimated Total Annual Burden on Dated: January 24, 2018. collection of information unless the Respondents: 41,850 hours. Heather L. MacDougall, collection of information displays a Dated: January 29, 2018. Chairman. currently valid OMB control number Suzanne H. Plimpton, [FR Doc. 2018–01957 Filed 1–31–18; 8:45 am] and the agency informs potential Reports Clearance Officer, National Science BILLING CODE 7600–01–P persons who are to respond to the Foundation. collection of information that such persons are not required to respond to [FR Doc. 2018–01986 Filed 1–31–18; 8:45 am] BILLING CODE 7555–01–P SECURITIES AND EXCHANGE the collection of information unless it COMMISSION displays a currently valid OMB control number. [Release No. 34–82588; File No. SR–FICC– 2018–001] SUPPLEMENTARY INFORMATION: OCCUPATIONAL SAFETY AND Title: Request for Proposals. HEALTH REVIEW COMMISSION Self-Regulatory Organizations; Fixed OMB Control Number: 3145–0080. Income Clearing Corporation; Notice of Proposed Project: The Federal Senior Executive Service Performance Filing of Proposed Rule Changes to Acquisition Regulations (FAR) Subpart Review Board Membership the Required Fund Deposit Calculation 15.2—‘‘Solicitation and Receipt of in the Government Securities Division Proposals and Information’’ prescribes AGENCY: Occupational Safety and Health Rulebook policies and procedures for preparing Review Commission. and issuing Requests for Proposals. The January 26, 2018. ACTION: Annual notice. FAR System has been developed in Pursuant to Section 19(b)(1) of the accordance with the requirement of the Securities Exchange Act of 1934, as SUMMARY: Notice is given of the 1 Office of Federal Procurement Policy amended (‘‘Act’’), and Rule 19b–4 appointment of members to the 2 Act of 1974, as amended. The NSF Act thereunder, notice is hereby given that Performance Review Board (PRB) of the of 1950, as amended, 42 U.S.C. 1870, on January 12, 2018, Fixed Income Occupational Safety and Health Review Sec. II, states that NSF has the authority Clearing Corporation (‘‘FICC’’) filed Commission. to: with the Securities and Exchange (c) Enter into contracts or other DATE: Membership is effective on Commission (‘‘Commission’’) the arrangements, or modifications thereof, February 1, 2018. proposed rule change as described in Items I, II and III below, which Items for the carrying on, by organizations or FOR FURTHER INFORMATION CONTACT: individuals in the United States and have been prepared by the clearing Linda M. Beard, Human Resources 3 foreign countries, including other agency. The Commission is publishing Specialist, U.S. Occupational Safety and this notice to solicit comments on the government agencies of the United Health Review Commission, 1120 20th States and of foreign countries, of such proposed rule change from interested Street NW, Washington, DC 20036, (202) persons. scientific or engineering activities as the 606–5393. Foundation deems necessary to carry I. Clearing Agency’s Statement of the out the purposes of this Act, and, at the SUPPLEMENTARY INFORMATION: The Terms of Substance of the Proposed request of the Secretary of Defense, Review Commission, as required by 5 Rule Change U.S.C. 4314(c)(1) through (5), has specific scientific or engineering The purpose of this filing is to amend established a Senior Executive Service activities in connection with matters the Government Securities Division PRB. The PRB reviews and evaluates the relating to international cooperation or (‘‘GSD’’) Rulebook (the ‘‘GSD Rules’’) 4 initial appraisal of a senior executive’s national security, and, when deemed to propose changes to GSD’s method of performance by the supervisor, and appropriate by the Foundation, such calculating Netting Members’ margin, contracts or other arrangements or makes recommendations to the referred to in the GSD Rules as the modifications thereof, may be entered Chairman of the Review Commission Required Fund Deposit amount.5 into without legal consideration, regarding performance ratings, Specifically, FICC is proposing to (1) without performance or other bonds and performance awards, and pay-for- change its method of calculating the without regard to section 5 of title 41, performance adjustments. Members of VaR Charge component, (2) add a new U.S.C. the PRB serve for a period of 24 months. component referred to as the ‘‘Blackout Use of the Information: Request for In the case of an appraisal of a career Period Exposure Adjustment’’ (as Proposals (RFP) is used to competitively appointee, more than half of the defined in section C. of Item II(A)1. solicit proposals in response to NSF members shall consist of career need for services. Impact will be on appointees, pursuant to 5 U.S.C. 1 15 U.S.C. 78s(b)(1). those individuals or organizations who 4314(c)(5). The names and titles of the 2 17 CFR 240.19b–4. elect to submit proposals in response to PRB members are as follows: 3 On January 12, 2018, FICC filed this proposed the RFP. Information gathered will be • David Eddy, Chief Counsel Federal rule change as an advance notice (SR–FICC–2018– 801) (‘‘Advance Notice Filing’’) with the evaluated in light of NSF procurement Labor Relations Authority; Commission pursuant to Section 806(e)(1) Of Title requirements to determine who will be • Rachel Leonard, General Counsel of VIII of the Dodd-Frank Wall Street Reform and awarded a contract. Consumer Protection Act entitled the Payment, the President, Office of Science and Estimate of Burden: The Foundation Clearing, and Settlement Supervision Act of 2010 Technology Policy Eisenhower estimates that, on average, 558 hours per (the ‘‘Clearing Supervision Act’’), 12 U.S.C. Executive Office Building (EEOB); 5465(e)(1), and Rule 19b–4(n)(1)(i) under the Act, respondent will be required to complete • 17 CFR 240.19b–4(n)(1)(i). A copy of the advance the RFP. Mary Thien Hoang, Chief of Staff notice is available at http://www.dtcc.com/legal/ Respondents: Individuals; business or Federal Maritime Commission; and sec-rule-filings.aspx. other for-profit; not-for-profit • Ted Wackler, P.E. Deputy Chief of 4 Available at DTCC’s website, www.dtcc.com/ legal/rules-and-procedures.aspx. Capitalized terms institutions; Federal government; state, Staff, Executive Office of the President, used herein and not defined shall have the meaning local, or tribal governments. Office of Science and Technology Policy assigned to such terms in the GSD Rules. Estimated Number of Responses: 75. EEOB. 5 Id. at GSD Rules 1 and 4.

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below), (3) eliminate the Blackout proposed Blackout Period Exposure A. The Required Fund Deposit and Period Exposure Charge and the Adjustment. Clearing Fund Calculation Overview FICC is requesting confidential Coverage Charge components, (4) amend GSD provides trade comparison, treatment of the above-referenced the Backtesting Charge component to (i) netting and settlement for the U.S. backtesting results, impact studies and include the backtesting deficiencies of Government securities marketplace. QRM Methodology, and has filed it certain GCF Counterparties during the Pursuant to the GSD Rules, Netting 6 separately with the Commission.9 Blackout Period and (ii) give GSD the Members may process the following ability to assess the Backtesting Charge II. Clearing Agency’s Statement of the securities and transaction types through on an intraday basis for all Netting Purpose of, and Statutory Basis for, the GSD: (1) Buy-sell transactions in eligible Members, and (5) amend the calculation Proposed Rule Change U.S. Treasury and Agency securities, (2) for determining the Excess Capital In its filing with the Commission, the delivery versus payment repurchase Premium for Broker Netting Members, agreement (‘‘repo’’) transactions, where Inter-Dealer Broker Netting Members clearing agency included statements concerning the purpose of and basis for the underlying collateral must be U.S. and Dealer Netting Members. In Treasury securities or Agency securities, addition, FICC is proposing to provide the proposed rule change and discussed any comments it received on the and (3) GCF Repo Transactions, where transparency with respect to GSD’s the underlying collateral must be U.S. existing authority to calculate and proposed rule change. The text of these statements may be examined at the Treasury securities, Agency securities, assess Intraday Supplemental Fund or eligible mortgage-backed securities. 7 places specified in Item IV below. The Deposit amounts. A key tool that FICC uses to manage FICC has also provided the following clearing agency has prepared summaries, set forth in sections A, B, counterparty risk is the daily calculation documentation to the Commission: and C below, of the most significant and collection of Required Fund 1. Backtesting results reflect FICC’s 12 aspects of such statements. Deposits from Netting Members. The comparison of the aggregate Clearing Required Fund Deposit serves as each Fund requirement (‘‘CFR’’) under GSD’s (A) Clearing Agency’s Statement of the Netting Member’s margin. Twice each current methodology and the aggregate Purpose of, and Statutory Basis for, the business day, Netting Members are CFR under the proposed methodology Proposed Rule Change required to satisfy their Required Fund (as listed in the first paragraph above) to 1. Purpose Deposit by 9:30 a.m. (E.T.) (the ‘‘AM historical returns of end-of-day RFD’’) and 2:45 p.m. (E.T.) (the ‘‘PM The purpose of this filing is to amend snapshots of each Netting Member’s RFD’’). The aggregate of all Netting the GSD Rules to propose changes to portfolio for the period May 2016 Members’ Required Fund Deposits GSD’s method of calculating Netting through October 2017. The CFR constitutes the Clearing Fund of GSD, backtesting results under the proposed Members’ margin, referred to in the GSD Rules as the Required Fund Deposit which FICC would access should a methodology were calculated in two defaulting Netting Member’s own ways for end-of-day portfolios: One set amount. Specifically, FICC is proposing to (1) change its method of calculating Required Fund Deposit be insufficient of results included the proposed to satisfy losses to GSD caused by the Blackout Period Exposure Adjustment the VaR Charge component, (2) add the Blackout Period Exposure Adjustment liquidation of that Netting Member’s and the other set of results excluded the portfolio. The objective of a Netting proposed Blackout Period Exposure as a new component, (3) eliminate the Blackout Period Exposure Charge and Member’s Required Fund Deposit is to Adjustment. mitigate potential losses to GSD 2. An impact study that shows the the Coverage Charge components, (4) amend the Backtesting Charge to (i) associated with liquidation of such portfolio level VaR Charge under the Member’s portfolio in the event that proposed methodology for the period consider the backtesting deficiencies of certain GCF Counterparties during the FICC ceases to act for such Member January 3, 2013 through December 30, 10 (hereinafter referred to as a ‘‘default’’). 2016,8 and Blackout Period and (ii) give GSD the ability to assess the Backtesting Charge As discussed below, a Netting 3. An impact study that shows the Member’s Required Fund Deposit aggregate Required Fund Deposit on an intraday basis for all Netting Members, and (5) amend the calculation currently consists of the VaR Charge amount by Netting Member for the for determining the Excess Capital and, to the extent applicable, the period May 1, 2017 through November Premium for Broker Netting Members, Coverage Charge, the Blackout Period 30, 2017. Dealer Netting Members and Inter- Exposure Charge, the Backtesting 4. The GSD Initial Margin Model (the Dealer Broker Netting Members. In Charge, the Excess Capital Premium, ‘‘QRM Methodology’’) which would 13 addition, FICC is proposing to provide and other components. reflect the proposed methodology of the transparency with respect to GSD’s VaR Charge calculation and the 1. GSD’s Required Fund Deposit existing authority to calculate and Calculation—the VaR Charge assess Intraday Supplemental Fund Component 6 As further discussed in subsection F of Item Deposit amounts.11 II(A)1. below, the proposed Backtesting Charge The proposed QRM Methodology The VaR Charge generally comprises would consider a GCF Counterparty’s backtesting the largest portion of a Netting deficiencies that are attributable to GCF Repo would reflect the proposed methodology Transactions collateralized with mortgage-backed of the VaR Charge calculation and the Member’s Required Fund Deposit securities during the Blackout Period. proposed Blackout Period Exposure 7 Pursuant to the GSD Rules, FICC has the Adjustment calculation. 12 See GSD Rules 1 and 4, supra note 4. existing authority and discretion to calculate an 13 Pursuant to the GSD Rules, the Required Fund additional amount on an intraday basis in the form Deposit calculation may include the following of an Intraday Supplemental Clearing Fund Deposit. 9 See 17 CFR 240–24b–2. additional components: The Holiday Charge, the See GSD Rules 1 and 4, Section 2a, supra note 4. 10 As further discussed in subsection F of section Cross-Margining Reduction, the GCF Premium 8 This period includes market stress events such II(A)1.below, the proposed Backtesting Charge Charge, the GCF Repo Event Premium, the Early as the U.S. presidential election, United Kingdom’s would consider a GCF Counterparty’s backtesting Unwind Intraday Charge and the Special Charge. vote to leave the European Union, and the 2013 deficiencies that are attributable to GCF Repo See GSD Rules 1 and 4, supra note 4. FICC is not spike in U.S. Treasury yields which resulted from Transactions collateralized with mortgage-backed proposing any changes to these components, thus the Federal Reserve’s plans to reduce its balance securities during the Blackout Period. a description of these components is not included sheet purchases. 11 See supra note 7. in this rule filing.

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amount. Currently, GSD uses a Proxy.18 The Margin Proxy is designed to GSD caused by settlement risks that methodology referred to as the ‘‘full to help ensure that each Netting may not be adequately captured by revaluation’’ approach to capture the Member’s VaR Charge is adequate and, GSD’s Required Fund Deposit. market price risk associated with the at the minimum, mirrors historical price The Excess Capital Premium is securities in a Netting Member’s moves. applied to a Netting Member’s Required portfolio. The full revaluation approach Fund Deposit when its VaR Charge 2. GSD’s Required Fund Deposit uses valuation algorithms to fully exceeds its Excess Capital. The Excess Calculation—Other Components reprice each security in a Netting Capital Premium is designed to more Member’s portfolio over a range of In addition to the VaR Charge, a effectively manage a Netting Member’s historically simulated scenarios. These Netting Member’s Required Fund credit risk to GSD that is caused because historical market moves are then used to Deposit calculation may include a such Netting Member’s trading activity project the potential gains or losses that number of other components including, has resulted in a VaR Charge that is could occur in connection with the but not limited to, the Coverage Charge, greater than its excess regulatory capital. the Blackout Period Exposure Charge, liquidation of a defaulting Netting 3. GSD’s Backtesting Process Member’s portfolio to determine the and the Backtesting Charge.19 In amount of the VaR Charge, which is addition, the Required Fund Deposit FICC employs daily backtesting to calibrated to cover the projected may include an Excess Capital Premium determine the adequacy of each Netting liquidation losses at a 99% confidence charge.20 Member’s Required Fund Deposit. level. The Coverage Charge is designed to Backtesting compares the Required The VaR Charge provides an estimate address potential shortfalls 21 in the Fund Deposit for each Netting Member of the possible losses for a given margin amount calculated by the with actual price changes in the Netting portfolio based on a given confidence existing VaR Charge and Funds-Only Member’s portfolio. The portfolio values level over a particular time horizon. The Settlement.22 Thus, the Coverage Charge are calculated using the actual positions current VaR Charge is calibrated at a is applied to supplement the VaR in a Netting Member’s portfolio on a 99% confidence level based on a front- Charge to help ensure that a Netting given day and the observed security weighted 14 1-year look-back period Member’s backtesting coverage achieves price changes over the following three assuming a three-day liquidation the 99% confidence level. days. The backtesting results are period.15 In the event that FICC The Blackout Period Exposure Charge reviewed by FICC as part of its determines that certain classes of is applied when FICC determines that a performance monitoring and assessment securities in a Netting Member’s GCF Counterparty has experienced of the adequacy of each Netting portfolio (including, but not limited to, backtesting deficiencies due to Member’s Required Fund Deposit. As the repo rate for Term Repo reductions in the notional value of the noted above, a Backtesting Charge may Transactions and Forward-Starting Repo mortgage-backed securities used to be assessed if GSD determines that a Transactions) are less amenable to collateralize its GCF Repo Transactions Netting Member’s Required Fund statistical analysis,16 FICC may apply a during the monthly Blackout Period. Deposit may not fully address the historic index volatility model rather This charge is designed to mitigate projected liquidation losses estimated than the VaR calculation.17 FICC’s exposure resulting from potential from such Netting Member’s settlement In addition to the full revaluation decreases in the collateral value of activity. Similarly, the Coverage Charge approach that GSD uses to calculate the mortgage-backed securities that occur may be assessed to address potential VaR Charge, GSD also utilizes ‘‘implied during the monthly Blackout Period. shortfalls in the VaR Charge calculation. volatility indicators’’ among the The Backtesting Charge is applied The Coverage Charge supplements the assumptions and other observable when FICC determines that a Netting VaR Charge to help ensure that the market data as part of its volatility Member’s portfolio has experienced Netting Member’s backtesting coverage model. Specifically, GSD applies a backtesting deficiencies over the prior achieves the 99% confidence level. The multiplier (also known as the 12-month period. The Backtesting Coverage Charge considers the ‘‘augmented volatility adjustment Charge is designed to mitigate exposures backtesting results of only the VaR multiplier’’) to calculate the VaR Charge (including the augmented Charge. The multiplier is based on the 18 The Margin Proxy is currently used to provide volatility adjustment multiplier) and supplemental coverage to the VaR Charge, however, levels of change in current and implied pursuant to this rule filing, the Margin Proxy would mark-to-market, while the Backtesting volatility measures of market only be used as an alternative volatility calculation Charge considers the total Required benchmarks. as described below in subsection B.3.—Proposed Fund Deposit amount. FICC also employs a supplemental change to implement the Margin Proxy as the VaR Charge during a vendor data disruption. B. Proposed Changes to GSD’s risk charge referred to as the Margin 19 See supra note 13. Calculation of the VaR Charge 20 See GSD Rules 1 and 3, Section 1, supra note 14 A fronted weighted approach means that GSD 4. FICC is proposing to amend its allows recently observed market data to have more 21 While multiple factors may contribute to a calculation of GSD’s VaR Charge impact on the VaR Charge than older historic shortfall, shortfalls could be observed based on the because during the fourth quarter of market data. mark-to-market change on a Netting Member’s 2016, FICC’s current methodology for 15 The three-day liquidation period is sometimes positions after the last margin collection. referred to as the ‘‘margin period of risk’’ or 22 The Coverage Charge is calculated as the front- calculating the VaR Charge did not ‘‘closeout-period.’’ This period reflects the time weighted average of backtesting coverage respond effectively to the market between the most recent collection of the Required deficiencies observed over the prior 100 days. The volatility that existed at that time. As a Fund Deposit from a defaulting Netting Member backtesting coverage deficiencies are determined by result, the VaR Charge did not achieve and the liquidation of such Netting Member’s comparing (x) the simulated liquidation profit and portfolio. FICC currently assumes that it would take loss of a Netting Member’s portfolio (using actual backtesting coverage at a 99% three days to liquidate or hedge a portfolio in positions in the Member’s portfolio and the actual confidence level and therefore yielded normal market conditions. historical returns on the security positions in the backtesting deficiencies beyond FICC’s 16 Certain classes of securities are less amenable portfolio) to (y) the sum of the VaR Charge and the risk tolerance. In response, FICC to statistical analysis because FICC believes that it Funds-Only Settlement Amount (which is the mark- does not observe sufficient historical market price to-market amount) in order to determine whether implemented the Margin Proxy to help data to reliably estimate the 99% confidence level. there would have been any shortfalls between the ensure that each Netting Member’s VaR 17 See GSD Rule 4 Section 1b(a), supra note 4. amounts collected. Charge achieves a minimum 99%

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confidence level and, at the minimum, supplying the market risk attributes, those price changes, a practice mirrors historical price moves, while which would then be incorporated by commonly referred to as risk attribution. FICC continued the development effort FICC into GSD’s model to calculate the FICC’s proposal to use the vendor’s on the proposed sensitivity based VaR Charge. Specifically, FICC would risk analytics data requires that FICC approach to remediate the observed source security-level risk sensitivity take steps to mitigate potential model model weaknesses.23 data and relevant historical risk factor risk. FICC has reviewed a description of As a result of FICC’s review of GSD’s time series data from an external vendor the vendor’s calculation methodology existing VaR model deficiencies, FICC is for all Eligible Securities. and the manner in which the market proposing to: (1) Replace the full data is used to calibrate the vendor’s revaluation approach with the The sensitivity data would be models. FICC understands and is sensitivity approach, (2) eliminate the generated by a vendor based on its 26 comfortable with the vendor’s controls, augmented volatility adjustment econometric, risk and pricing models. governance process and data quality multiplier, (3) employ the Margin Proxy Because the quality of this data is an standards. FICC would conduct an as an alternative volatility calculation important component of calculating the independent review of the vendor’s rather than as a minimum volatility VaR Charge, FICC would conduct release of a new version of its model calculation, (4) utilize a haircut method independent data checks to verify the prior to using it in GSD’s proposed for securities that lack sufficient accuracy and consistency of the data sensitivity approach calculation. In the historical data, and (5) establish a feed received from the vendor. With event that the vendor changes its model minimum calculation, referred to as the respect to the historical risk factor time and methodologies that produce the risk VaR Floor (as defined below in series data, FICC has evaluated the factors and risk sensitivities, FICC subsection 5 below), as the minimum historical price moves and determined would analyze the effect of the proposed VaR Charge. These proposed changes which risk factors primarily explain changes on GSD’s proposed sensitivity are described in detail below. approach. Future changes to the QRM 1. Proposed Change To Replace the Full agreement between FICC and the vendor’s affiliate Methodology would be subject to a each contain provisions that limit the sharing of Revaluation Approach With the proposed rule change pursuant to Rule confidential information. 27 Sensitivity Approach 26 The following risk factors would be 19b–4 (‘‘Rule 19b–4’’) of the Act and may be subject to an advance notice FICC is proposing to address GSD’s incorporated into GSD’s proposed sensitivity approach: Key rate, convexity, implied inflation filing pursuant to Section 806(e)(1) of existing VaR model deficiencies by rate, agency spread, mortgage-backed securities the Clearing Supervision Act 28 and Rule replacing the full revaluation method spread, volatility, mortgage basis, and time risk 19b–4(n)(1)(I) under the Act.29 with the sensitivity approach.24 factor. These risk factors are defined as follows: The Modifications to the proposed VaR current full revaluation approach uses • key rate measures the sensitivity of a price Charge may be subject to a proposed valuation algorithms to fully reprice change to changes in interest rates; • convexity measures the degree of curvature in rule change pursuant to Rule 19b–4 30 each security in a Netting Member’s the price/yield relationship of key interest rates; and/or an advance notice filing portfolio over a range of historically • implied inflation rate measures the difference pursuant to Section 806(e)(1) of the simulated scenarios. While there are between the yield on an ordinary bond and the Clearing Supervision Act 31 and Rule benefits to this method, some of its yield on an inflation-indexed bond with the same 19b–4(n)(1)(I) under the Act.32 deficiencies are that it requires maturity; • Under the proposed approach, a significant historical market data inputs, agency spread is yield spread that is added to a benchmark yield curve to discount an Agency Netting Member’s portfolio risk calibration of various model parameters bond’s cash flows to match its market price; sensitivities would be calculated by and extensive quantitative support for • mortgage-backed securities spread is the yield spread that is added to a benchmark yield curve to FICC as the aggregate of the security price simulations. level risk sensitivities weighted by the FICC believes that the proposed discount a to-be-announced (‘‘TBA’’) security’s cash flows to match its market price; corresponding position market values. sensitivity approach would address • volatility reflects the implied volatility More specifically, FICC would look at these deficiencies because it would observed from the swaption market to estimate the historical changes of the chosen risk leverage external vendor 25 expertise in fluctuations in interest rates; • mortgage basis captures the basis risk between factors during the look-back period in 23 See supra note 18. the prevailing mortgage rate and a blended Treasury order to generate risk scenarios to arrive 24 GSD’s proposed sensitivity approach is similar rate; and at the market value changes for a given • to the sensitivity approach that FICC’s Mortgage- time risk factor accounts for the time value portfolio. A statistical probability Backed Securities Division (‘‘MBSD’’) uses to change (or carry adjustment) over the assumed distribution would be formed from the liquidation period. calculate the VaR Charge for MBSD clearing portfolio’s market value changes, which members. See MBSD’s Clearing Rules, available at The above-referenced risk factors are similar to DTCC’s website, www.dtcc.com/legal/rules-and- the risk factors currently utilized in MBSD’s are then calibrated to cover the procedures.aspx. See Securities Exchange Act sensitivity approach, however, GSD has included projected liquidation losses at a 99% Release No. 79868 (January 24, 2017) 82 FR 8780 other risk factors that are specific to the U.S. confidence level. The portfolio risk (January 30, 2017) (SR–FICC–2016–007) and Treasury securities, Agency securities and sensitivities and the historical risk Securities Exchange Act Release No. 79643 mortgage-backed securities cleared through GSD. (December 21, 2016), 81 FR 95669 (December 28, Concerning U.S. Treasury securities and Agency factor time series data would then be 2016) (SR–FICC–2016–801). securities, FICC would select the following risk used by FICC’s risk model to calculate 25 FICC does not believe that its engagement of factors: Key rates, convexity, agency spread, the VaR Charge for each Netting the vendor would present a conflict of interest implied inflation rates, volatility, and time. Member. because the vendor is not an existing Netting For mortgage-backed securities, each security The proposed sensitivity approach Member nor are any of the vendor’s affiliates would be mapped to a corresponding TBA forward existing Netting Members. To the extent that the contract and FICC would use the risk exposure differs from the current full revaluation vendor or any of its affiliates submit an application analytics for the TBA as an estimate for the approach mainly in how the market to become a Netting Member, FICC will negotiate mortgage-backed security’s risk exposure analytics. an appropriate information barrier with the FICC would use the following risk factors to model 27 See 17 CFR 240.19b–4. applicant in an effort to prevent a conflict of a TBA security: Key rates, convexity, mortgage- 28 See 12 U.S.C. 5465(e)(1). interest from arising. An affiliate of the vendor backed securities spread, volatility, mortgage basis, 29 currently provides an existing service to FICC; and time. To account for differences between See 17 CFR 240.19b–4(n)(1)(I). however, this arrangement does not present a mortgage-backed securities and their corresponding 30 See 17 CFR 240.19b–4. conflict of interest because the existing agreement TBA, FICC would apply an additional basis risk 31 See 12 U.S.C. 5465(e)(1). between FICC and the vendor, and the existing adjustment. 32 See 17 CFR 240.19b–4(n)(1)(I).

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value changes are calculated. The full increasing the overall Clearing Fund.34 back period would help to ensure that revaluation approach accounts for In fact, the calculation of the VaR the historical simulation contains a changes in market variables and Charge using the proposed sensitivity sufficient number of historical market instrument specific characteristics of approach would produce a VaR Charge conditions (including but not limited to U.S. Treasury/Agency securities and amount that is consistent with the stressed market conditions). mortgage-backed securities by current VaR Charge calculation, as While FICC could extend the 1-year incorporating certain historical data to supplemented by Margin Proxy.35 look-back period in the existing full calibrate a pricing model that generates The second benefit of the proposed revaluation approach to a 10-year look- simulated prices. This data is used to sensitivity approach is that it would back period, the performance of the create a distribution of returns per each provide more transparency to Netting existing model could deteriorate if security. By comparison, the proposed Members. Because Netting Members current market conditions are materially sensitivity approach would simulate the typically use risk factor analysis for different than indicated in the historical market value changes of a Netting their own risk and financial reporting, data. Additionally, since the full Member’s portfolio under a given such Members would have comparable revaluation approach requires FICC to market scenario as the sum of the data and analysis to assess the variation maintain in-house complex pricing portfolio risk factor exposures in their VaR Charge based on changes in models and mortgage prepayment multiplied by the corresponding risk the market value of their portfolios. models, enhancing these models to factor movements. Thus, Netting Members would be able to extend the look-back period to include simulate the VaR Charge to a closer 10 years of historical data involves FICC believes that the sensitivity significant model development. The approach would provide three key degree than under the existing full revaluation approach. sensitivity approach, on the other hand, benefits. First, the sensitivity approach would leverage external vendor data to incorporates a broad range of structured The third benefit of the proposed sensitivity approach is that it would incorporate a longer look-back period of risk factors and a Netting Member 10 years, which would allow the portfolios’ exposure to these risk factors, provide FICC with the ability to adjust the look-back period that FICC uses for proposed model to capture periods of while the full revaluation approach is historical volatility. calibrated with only security level purposes of calculating the VaR Charge. Specifically, FICC would change the In the event FICC observes that the historical data that is supplemented by 10-year look-back period does not the augmented volatility adjustment look-back period from a front- 36 contain a sufficient number of stressed multiplier. The proposed sensitivity weighted 1-year look-back (which is currently utilized today) to a 10-year market conditions, FICC would have the approach integrates both observed risk ability to include an additional period factor changes and current market look-back period that is not front- weighted and would include, to the of historically observed stressed market conditions to more effectively respond conditions to a 10-year look-back period to current market price moves that may extent applicable, an additional stressed period.37 The proposed extended look- or adjust the length of look-back period. not be reflected in the historical price The additional stress period is designed moves combined with the augmented 34 The CFR backtesting results under the to be a continuous period (typically 1 volatility adjustment multiplier. In this proposed methodology (both with and without year). FICC believes that it is regard, FICC has concluded, based on its Blackout Period Exposure Adjustment) indicate that appropriate to assess on an annual basis assessment of the backtesting results of the proposed methodology provided better overall whether an additional stressed period the proposed sensitivity approach and coverage during the volatile period following the U.S. election than under the current methodology. should be included. This assessment, its comparison of those results to the The CFR Backtesting results under the proposed which will only occur annually, would backtesting results of the current full methodology were also more stable over the May include a review of (1) the largest moves 33 revaluation approach that the 2016 through October 2017 study period than the in the dominating market risk factor of CFR backtesting results under the existing proposed sensitivity approach would the proposed sensitivity approach, (2) address the deficiencies observed in the methodology. 35 FICC implemented the Margin Proxy at the end the impact analyses resulting from the existing model because it would of April 2017. As a result, the CFR backtesting removal and/or addition of a stressed leverage external vendor expertise, coverage under the current methodology increased period, and (3) the backtesting results of which FICC does not need to develop in May 2017 and were more consistent with the the proposed look-back period. As in-house, in supplying the market risk CFR backtesting results under the proposed methodology from May 2017 through October 2017. described in the QRM Methodology, attributes that would then be Based on data reflected in the impact study, FICC approval by DTCC’s Model Risk incorporated by FICC into GSD’s model observes that for the period May 1, 2017 to Governance Committee (‘‘MRGC’’) and, to calculate the VaR Charge. With November 30, 2017 an approximate 7% increase in to the extent necessary, the Management respect to FICC’s review of the average aggregate AM RFD across all Netting Members. Risk Committee (‘‘MRC’’) would be backtesting results, FICC believes that 36 A front-weighted look-back period assigns required to determine when to apply an the calculation of the VaR Charge using more weight to the most recent market observations additional period of stressed market the proposed sensitivity approach thus effectively diminishing the value of older conditions to the look-back period and would provide better coverage on market observations. The front-weighted approach is based on the assumption that the most recent the appropriate historical stressed volatile days while not significantly price history is more relevant to current market period to utilize if it is not within the volatility levels. current 10-year period. 33 The backtesting results compared the aggregate 37 Under the proposed model, the 10-year look- CFR under the current methodology and the back period would include the 2008/2009 financial 2. Proposed Change To Amend the VaR aggregate CFR under the proposed methodology to crisis scenario. To the extent that an equally or Charge To Eliminate the Augmented historical returns of end-of-day snapshots of each more stressed market period does not occur when Volatility Adjustment Multiplier Netting Member’s portfolio for the period May 2016 the 2008/2009 financial crisis period is phased out through October 2017. The CFR backtesting results from the 10-year look-back period (i.e., from As described above, the augmented under the proposed methodology were calculated in September 2018 onward), pursuant to the QRM volatility adjustment multiplier gives two ways for end-of-day portfolios: one set of methodology document, FICC would continue to results included the proposed Blackout Period include the 2008/2009 financial crisis scenario in GSD the ability to adjust its volatility Exposure Adjustment and the other set of results its historical scenarios. However, if an equally or excluded the proposed Blackout Period Exposure more stressed market period emerges in the future, historical scenarios with those from the 2008/2009 Adjustment. FICC may choose not to augment its 10-year financial crisis.

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calculations as needed to improve the Margin Proxy would be subject to assess the quality of the data that it performance of its VaR model in periods monthly performance review by the receives from vendors. of market volatility. The augmented MRGC. FICC would monitor the b. Regulation SCI Implications volatility adjustment multiplier was performance of the Margin Proxy designed to mitigate the effect of the 1- calculation on a monthly basis to ensure Rule 1001(c)(1) of Regulation Systems year look-back period used in the that it could be used in the Compliance and Integrity (‘‘SCI’’) existing full revaluation approach circumstance described above. requires FICC to establish, maintain, because it allowed the model to better Specifically, FICC would monitor each and enforce reasonably designed written react to conditions that may not have Netting Member’s Required Fund policies and procedures that include the been within the recent historical one- Deposit and the aggregate Clearing Fund criteria for identifying responsible SCI year period. FICC is proposing to requirements versus the requirements personnel, the designation and eliminate the augmented volatility calculated by Margin Proxy. FICC would documentation of responsible SCI adjustment multiplier because it would also backtest the Margin Proxy results personnel, and escalation procedures to be no longer necessary given that the versus the three-day profit and loss quickly inform responsible SCI proposed sensitivity approach would based on actual market price moves. If personnel of potential SCI events.40 have a longer look-back period and the FICC observes material differences Further, pursuant to Rule 1002 of ability to include an additional stressed between the Margin Proxy calculations Regulation SCI, each responsible SCI market condition to account for periods and the aggregate Clearing Fund personnel determines when there is a of market volatility. requirement calculated using the reasonable basis to conclude that a SCI 3. Proposed Change To Implement the proposed sensitivity approach, or if the event has occurred, which will trigger Margin Proxy as the VaR Charge During Margin Proxy’s backtesting results do certain obligations of a SCI entity with a Vendor Data Disruption not meet FICC’s 99% confidence level, respect to such SCI events.41 FICC has FICC management may recommend existing policies and procedures that a. Vendor Data Disruption remedial actions to the MRGC, and to reflect established criteria that must be In connection with FICC’s proposal to the extent necessary the MRC, such as used by responsible SCI personnel to source data for the proposed sensitivity increasing the look-back period and/or determine whether a disruption to, or approach, FICC is also proposing applying an appropriate historical significantly downgrade of, the normal procedures that would govern in the stressed period to the Margin Proxy operation of FICC’s risk management event that the vendor fails to provide calibration. system has occurred as defined under risk analytics data. If the vendor fails to As noted above, FICC intends to Regulation SCI. These policies and provide any data or a significant portion source certain sensitivity data and risk procedures do not have to be amended of the data timely, FICC would use the factor data from a vendor. FICC’s in connection with this proposed rule most recently available data on the first Quantitative Risk Management, Vendor change. In the event that the vendor day that such data disruption occurs. If Risk Management, and Information fails to provide the requisite risk it is determined that the vendor will Technology teams have conducted due analytics data, the responsible SCI resume providing data within five (5) diligence of the vendor in order to personnel would determine whether a business days, FICC’s management evaluate its control framework for SCI event has occurred, and FICC would would determine whether the VaR managing key risks. FICC’s due fulfill its obligations with respect to the Charge should continue to be calculated diligence included an assessment of the SCI event. by using the most recently available vendor’s technology risk, business data along with an extended look-back 4. Proposed Change To Utilize a Haircut continuity, regulatory compliance, and period or whether the Margin Proxy Method To Measure the Risk Exposure privacy controls. FICC has existing should be invoked, subject to the of Securities That Lack Historical Data policies and procedures for data approval of DTCC’s Group Chief Risk management that includes market data Occasionally, portfolios contain Officer or his/her designee. If it is and analytical data provided by classes of securities that reflect market determined that the data disruption will vendors. These policies and procedures price changes that are not consistently extend beyond five (5) business days, do not have to be amended in related to historical risk factors. The the Margin Proxy would be applied as connection with this proposed rule value of these securities is often an alternative volatility calculation for change. FICC also has tools in place to uncertain because the securities’ market the VaR Charge subject to the proposed volume varies widely, thus the price VaR Floor.38 FICC’s proposed use of the histories are limited. Because the Margin Proxy would be subject to the prepayment risk. Separate calculations also provide FICC with the ability to monitor the performance volume and price information for such approval of the MRC followed by of each asset class individually. Each security in a securities is not robust, a historical notification to FICC’s Board Risk Netting Member’s Margin Portfolio is mapped to a simulation approach would not generate Committee. FICC would continue to separate benchmark based on the security’s asset VaR Charge amounts that adequately calculate the Margin Proxy on a daily class and maturity. All securities within each benchmark are then aggregated into a net exposure. reflect the risk profile of such securities. basis and this calculation would FICC then applies an applicable haircut to the net Currently, GSD Rule 4 provides that continue to reflect separate calculations exposure per benchmark to determine the net price FICC may use a historic index volatility for U.S. Treasury/Agency securities and risk for each benchmark. Finally, FICC determines model to calculate the VaR Charge for mortgage-backed securities.39 The the asset class price risk (‘‘Asset Class Price Risk’’) for U.S. Treasury/Agency securities and mortgage- these classes of securities.42 FICC is backed securities benchmarks separately by proposing to amend GSD Rule 4 to 38 The proposed VaR Floor is defined below in aggregating the respective net price risk. For the subsection B.5.—Proposed change to amend the U.S. Treasury benchmarks, the calculation includes utilize a haircut method based on a VaR Charge calculation to establish a VaR Floor. a correlation adjustment to provide risk historic index volatility model for any 39 Currently, GSD conducts separate calculations diversification across tenor buckets that has been security that lacks sufficient historical in order to cover the historical market prices of U.S. historically observed across the U.S. Treasury Treasury/Agency securities and mortgage-backed benchmarks. The Margin Proxy is the sum of the securities, respectively, because the historical price U.S. Treasury/Agency securities and mortgage- 40 See 17 CFR 242.1001(c)(1). changes of these asset classes are different as a backed securities Asset Class Price Risk. No 41 See 17 CFR 242.1002. result of market factors such as credit spreads and changes are being proposed to this calculation. 42 See GSD Rule 4, supra note 4.

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data to be incorporated into the applied to securities mapped to the U.S. the total value of mortgage-backed proposed sensitivity approach. Treasury benchmarks to provide risk securities in a Netting Member’s FICC believes that the proposal to diversification across tenor buckets that portfolio by a designated amount, implement a haircut method for were historically observed. referred to as the pool floor rate, (which securities that lack sufficient historical would be initially set at 0.05%).46 GSD 5. Proposed Change To Amend the VaR information would allow FICC to use would evaluate the appropriateness of Charge Calculation To Establish a VaR appropriate market data to estimate a the proposed initial floor rates (e.g., the Floor margin at a 99% confident level, thus 10% of the benchmark haircut rate for helping to ensure that sufficient margin FICC is proposing to amend the U.S. Treasury/Agency securities and would be calculated for portfolios that existing calculation of the VaR Charge to 0.05% for mortgage-backed securities) at contain these securities. FICC would include a minimum amount, which least annually based on backtesting continue to manage the market risk of would be referred to as the ‘‘VaR Floor.’’ performance and risk tolerance clearing these securities by conducting The proposed VaR Floor would be a considerations. analysis on the type of securities that calculated amount that would be used cannot be processed by the proposed as the VaR Charge when the sum of the 6. Mitigating Risks of Concentrated VaR model and engaging in periodic amounts calculated by the proposed Positions reviews of the haircuts used for sensitivity approach and haircut method For the reasons described above, FICC calculating margin for these types of is less than the proposed VaR Floor. believes that the proposed changes to securities. FICC’s proposal to establish a VaR Floor GSD’s VaR Charge calculation would FICC is proposing to calculate the VaR seeks to address the risk that the allow it to better measure and mitigate Charge for these securities by utilizing proposed VaR model calculates a VaR the risks presented within Netting a haircut approach based on a market Charge that is erroneously low where Members’ portfolios. benchmark with a similar risk profile as the gross market value of unsettled One of the risks presented by the related security. The proposed positions in the Netting Member’s unsettled positions concentrated in an haircut approach would be calculated portfolio is high and the cost of asset class is that FICC may not be able separately for U.S. Treasury/Agency liquidation in the event of a Member to liquidate or hedge the unsettled securities (other than (x) treasury default could also be high. This would positions of a defaulted Netting Member floating-rate notes and (y) term repo rate be likely to occur when the proposed in the assumed timeframe at the market volatility for Term Repo Transactions VaR model applies substantial risk price in the event of such Netting and Forward-Starting Repo Transactions offsets among long and short positions Member’s default. Because FICC relies (including term and forward-starting in different classes of securities that on external market data in connection GCF Repo Transactions)) 43 and have a high degree of historical price with monitoring exposures to its Netting mortgage-backed securities. correlation. Because this high degree of Members, the market data may not Specifically, each security in a historical price correlation may not reflect the market impact transaction Netting Member’s portfolio would be apply in future changing market costs associated with the potential mapped to a respective benchmark conditions,45 FICC believes that it liquidation as the concentration risk of based on the security’s asset class and would be prudent to apply a VaR Floor an unsettled position increases. remaining maturity, then all securities that is based upon the market value of However, FICC believes that, through within each benchmark would be the gross unsettled positions in the the proposed changes and through aggregated into a net exposure. FICC Netting Member’s portfolio in order to existing risk management measures,47 it would apply an applicable haircut to protect FICC against such risk in the would be able to effectively measure the net exposure per benchmark to event that FICC is required to liquidate and mitigate risks presented when a determine the net price risk for each a large Netting Member’s portfolio in Netting Member’s unsettled positions benchmark. Finally, the net price risk stressed market conditions. are concentrated in a particular security. would be aggregated across all The VaR Floor would be calculated as FICC will continue to evaluate its benchmarks (but separately for U.S. the sum of the following two exposures to these risks. Any future Treasury/Agency securities and components: (1) A U.S. Treasury/ proposed changes to the margin mortgage-backed securities) and a Agency bond margin floor and (2) a 46 correlation adjustment 44 would be mortgage-backed securities margin floor. For example, assume the pool floor rate is set to 0.05% and the bond floor rate is set to 10% of The U.S. Treasury/Agency bond margin haircut rates. Further assume that a Netting Member 43 GSD is not proposing any changes to its current floor would be calculated by mapping has a portfolio with gross positions of $2 billion in approach to calculating the VaR Charge for floating each U.S. Treasury/Agency security to a mortgage-backed securities and gross positions of rate notes. Currently, GSD uses a haircut approach tenor bucket, then multiplying the gross U.S. Treasury/Agency securities that fall into two with a constant discount margin movement tenor buckets—$2 billion in tenor bucket ‘‘A’’ and scenario. The discount margin movement scenario positions of each tenor bucket by its $3 billion in tenor bucket ‘‘B.’’ If the haircut rate is based on the current market condition of the bond floor rate, and summing the for tenor bucket ‘‘A’’ is 1% and the haircut rate for floating rate note price movements. This amount results. The bond floor rate of each tenor tenor bucket ‘‘B’’ is 2%, then the bond floor rate plus the calculated discount margin sensitivity of bucket would be a fraction (which would be 0.1% and 0.2%, respectively. Therefore, each floating rate note issue’s market price plus the the resulting VaR Floor would be $9 million (i.e., formula provided by the U.S. Department of would be initially set at 10%) of an ([0.05%]*[$2 billion]) + [0.1%]*[$2 billion]) + Treasury equals the haircut of the floating rate note index-based haircut rate for such tenor ([0.2%]*[$3 billion])). If the VaR model charge is portion of a Netting Member’s portfolio. GSD is also bucket. The mortgage-backed securities less than $9 million, then the VaR Floor calculation not proposing any change to its current approach margin floor would be calculated by of $9 million would be set as the VaR Charge. to calculating the VaR Charge for repo interest 47 For example, pursuant to existing authority volatility, which is based on internally constructed multiplying the gross market value of under GSD Rule 4, FICC has the discretion to repo interest rate indices. calculate an additional amount (‘‘special charge’’) 44 The correlation adjustment is based on 3-day 45 For example, and without limitation, certain applicable to a Margin Portfolio as determined by returns during a 10-year look-back. It reflects the securities may have highly correlated historical FICC from time to time in view of market average amount that the 3-day returns of each price returns, but if future market conditions were conditions and other financial and operational benchmark moves in relation to one another. The to substantially change, these historical correlations capabilities of the Netting Member. FICC shall make correlation adjustment would only be applied for could break down, leading to model-generated any such determination based on such factors as U.S. Treasury and Agency indices with maturities offsets that would not adequately capture a FICC determines to be appropriate from time to greater than 1 year. portfolio’s risk. time. See GSD Rule 4, supra note 4.

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methodology to address such risks FICC believes that projecting the pay- backtesting deficiencies during the would be subject to a separate proposed down rate separately for each program Blackout Period and whose overall 12- rule change pursuant Rule 19b–4 of the and weighting the results by recently month trailing backtesting coverage falls Act,48 and/or an advance notice active pools would reduce instances of below the 99% coverage target.54 FICC pursuant to Section 806(e)(1) of the large under/over estimation. FICC believes that the Blackout Period Clearing Supervision Act 49 and the would continue to monitor the realized Exposure Charge would no longer be rules thereunder. pay-down against FICC’s weighted necessary because the applicability of C. Proposed Change To Establish the average pay-down rates and its vendor’s the proposed Blackout Period Exposure Blackout Period Exposure Adjustment projected pay-down rates as part of the Adjustment would better estimate As a Component to the Required Fund model performance monitoring. Further, potential changes to the GCF Repo Deposit Calculation in the event that a GCF Counterparty Transactions and help to ensure that continues to experience backtesting GCF Counterparties’ with GCF Repo FICC is proposing to add a new deficiencies, FICC would apply a Transactions collateralized with component to the Required Fund Backtesting Charge, which as described mortgage-backed securities maintain a Deposit calculation that would be in section F below, that would be backtesting coverage above the 99% applied to the VaR Charge for all GCF amended to consider backtesting confidence level. Further, in the event Counterparties with GCF Repo deficiencies attributable to GCF Repo that a GCF Counterparty continues to Transactions collateralized with Transactions collateralized with experience backtesting deficiencies, mortgage-backed securities during the mortgage-backed securities during the FICC would apply a Backtesting Charge, monthly Blackout Period (the ‘‘Blackout Blackout Period.51 which as described in section F below, Period Exposure Adjustment’’). FICC is The proposed Blackout Period that would be amended to consider proposing this new component because Exposure Adjustment would only be backtesting deficiencies attributable to it would better protect FICC and its imposed during the Blackout Period and GCF Repo Transactions collateralized Netting Members from losses that could it would be applied as of the morning with mortgage-backed securities during result from overstated values of Clearing Fund call on the Record Date the Blackout Period.55 mortgage-backed securities pledged as through and including the intraday E. Proposed Change To Eliminate the collateral for GCF Repo Transactions Clearing Fund call on the Factor Date, Coverage Charge Component From the during the Blackout Period. or until the Pool Factors 52 have been The proposed Blackout Period Required Fund Deposit Calculation updated to reflect the current month’s Exposure Adjustment would be in the Pool Factors in the GCF Clearing Agent FICC is proposing to eliminate the form of a charge that is added to the VaR Bank’s collateral reports. Coverage Charge component from GSD’s Charge or a credit that would reduce the Required Fund Deposit calculation.56 VaR Charge. The proposed Blackout D. Proposed Change To Eliminate the The Coverage Charge component is Period Exposure Adjustment would be Existing Blackout Period Exposure based on historical portfolio activity, calculated by (1) projecting an average Charge which may not be indicative of a pay-down rate for the government FICC would eliminate the existing Netting Member’s current risk profile, sponsored enterprises (Fannie Mae and Blackout Period Exposure Charge 53 but was determined by FICC to be Freddie Mac) and the Government because the proposed Blackout Period appropriate to address potential National Mortgage Association (Ginnie Exposure Adjustment (which is shortfalls in margin charges under the Mae), respectively, then (2) multiplying described in section C above) would be current VaR model. FICC is proposing to the projected pay-down rate 50 by the applied to all GCF Counterparties with eliminate the Coverage Component net positions of mortgage-backed securities in the related program, and (3) GCF Repo Transactions collateralized because its analysis indicates that the summing the results from each program. with mortgage-backed securities during sensitivity approach would provide Because the projected pay-down rate the Blackout Period. The existing overall better margin coverage. would be an average of the weighted Blackout Period Exposure Charge, on As part of the development and averages of pay-down rates for all active the other hand, only applies to GCF assessment of the proposed VaR Charge, mortgage pools of the related program Counterparties that have two or more FICC backtested the model’s performance and analyzed the impact of during the three most recent preceding 51 months, it is possible that the proposed The proposed changes to the Backtesting the margin changes. Results of the Charge are described below is section F—Proposed analysis indicated that the proposed Blackout Period Exposure Adjustment change to amend the Backtesting Charge to (i) could overestimate the amount for a include backtesting deficiencies attributed to GCF sensitivity approach would be more GCF Counterparty with a portfolio that Repo Transactions collateralized with mortgage- responsive to changing market primarily includes slower paying backed securities during the Blackout Period and dynamics and a Netting Member’s (ii) give GSD the authority to assess a Backtesting portfolio composition coverage than the mortgage-backed securities or Charge on an intraday basis. underestimate the amount for a GCF 52 Pursuant to the GSD Rules, the term ‘‘Pool existing VaR model that utilizes the full Counterparty with a portfolio that Factor’’ means, with respect to the Blackout Period, revaluation approach. The backtesting primarily includes faster paying the percentage of the initial principal that remains analysis also demonstrated that the outstanding on the mortgage loan pool underlying proposed sensitivity approach would mortgage-backed securities. However, a mortgage-backed security, as published by the government-sponsored entity that is the issuer of provide sufficient margin coverage on a 48 See 17 CFR 240.19b–4. such security. See GSD Rule 1, supra note 4. 49 See 12 U.S.C. 5465(e)(1). 53 Pursuant to the GSD Rules, FICC imposes a 54 See GSD Rules 1 and 4, supra note 4. 50 GSD would calculate the projected average pay- Blackout Period Exposure Charge when FICC 55 The proposed changes to the Backtesting down rates each month using historical pool factor determines, based on prior backtesting deficiencies Charge are described below is section F—Proposed pay-down rates that are weighted by historical of a GCF Counterparty’s Required Fund Deposit, change to amend the Backtesting Charge to (i) positions during each of the prior three months. that the GCF Counterparty may experience a include backtesting deficiencies attributed to GCF Specifically, the projected pay-down rate for a deficiency due to reductions in the notional value Repo Transactions collateralized with mortgage- current Blackout Period would be an average of the of the mortgage-backed securities used by such GCF backed securities during the Blackout Period and weighted averages of pay-down rates for all active Counterparty to collateralize its GCF Repo trading (ii) give GSD the authority to assess a Backtesting mortgage pools of the related program during the activity that occur during the monthly Blackout Charge on an intraday basis. three most recent preceding months. Period. See GSD Rules 1 and 4, supra note 4. 56 See GSD Rules 1 and 4, supra note 4.

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standalone basis. Additionally, in the trading activities. A Backtesting Charge experiencing backtesting deficiencies event that FICC observes unexpected that is imposed intraday would be due to similar underlying reasons. deficiencies in the backtesting of a referred to as a ‘‘Intraday Backtesting As is the case with the existing Netting Member’s Required Fund Charge.’’ The Intraday Backtesting Backtesting Charge (which would be Deposit, the Backtesting Charge would Charge would be assessed on an referred to as the ‘‘Regular Backtesting apply.57 Given the above, FICC believes intraday basis and it would increase a Charge’’), the proposed Intraday the Coverage Charge would no longer be Netting Member’s Required Fund Backtesting Charge would be assessed necessary. Deposit to help ensure that its intraday on Netting Members with portfolios that backtesting coverage achieves the 99% F. Proposed Change To Amend the experience at least three intraday confidence level. Backtesting Charge To (i) Include backtesting deficiencies over the prior Backtesting Deficiencies Attributable to The proposed assessment of the 12-month period. The proposed GCF Repo Transactions Collateralized Intraday Backtesting Charge differs from Intraday Backtesting Charge would With Mortgage-Backed Securities the existing assessment of the generally equal a Netting Member’s During the Blackout Period and (ii) Give Backtesting Charge because the existing third largest historical intraday GSD the Authority To Assess a assessment is based on the backtesting backtesting deficiency because FICC Backtesting Charge on an Intraday Basis results of a Netting Member’s PM RFD believes that an Intraday Backtesting FICC is proposing to amend the versus the historical returns of such Charge equal to the third largest Netting Member’s portfolio at the end of Backtesting Charge to (i) include historical intraday backtesting the trading day while the proposed backtesting deficiencies attributable to deficiency would bring the affected GCF Repo Transactions collateralized Intraday Backtesting Charge would be based on the most recent Required Fund Netting Member’s historically observed with mortgage-backed securities during intraday backtesting coverage above the the Blackout Period and (ii) give GSD Deposit amount that was collected from 99% confidence level. the authority to assess a Backtesting a Netting Member versus the historical Charge on an intraday basis. returns of such Netting Member’s FICC would have the discretion to portfolio intraday. adjust the Intraday Backtesting Charge (i) Proposed Change To Amend the In an effort to differentiate the to an amount that is more appropriate Backtesting Charge To Include for maintaining such Netting Member’s Backtesting Deficiencies Attributable to proposed Intraday Backtesting Charge intraday backtesting results above the GCF Repo Transactions Collateralized from the existing Backtesting Charge, 99% coverage threshold.59 With Mortgage-Backed Securities FICC is proposing to change the name During the Blackout Period of the existing Backtesting Charge to In the event that FICC determines that ‘‘Regular Backtesting Charge.’’ The FICC is proposing to amend the an Intraday Backtesting Charge should Intraday Backtesting Charge and the apply in the circumstances described Backtesting Charge to provide that this Regular Backtesting Charge would charge would be applied to a GCF above, FICC would notify the affected collectively be referred to as the Netting Member prior to its assessment Counterparty that experiences Backtesting Charge. backtesting deficiencies that are of the charge. As is the case with the attributed to GCF Repo Transactions Calculation and Assessment of Intraday existing application of the Backtesting collateralized with mortgage-backed Backtesting Charges Charge, FICC would notify Netting securities during the Blackout Period. Members on or around the 25th Currently, Backtesting Charges are not FICC would use a snapshot of each calendar day of the month. applied to GCF Counterparties with Netting Member’s portfolio during the 58 The proposed Intraday Backtesting collateralized mortgage-backed trading day, and compare each Netting Member’s AM RFD with the simulated Charge would be applied to the affected securities during the Blackout Period Netting Member’s Required Fund because such counterparties may be liquidation gains/losses using an intraday snapshot of the actual positions Deposit on a daily basis for a one-month subject to a Blackout Period Exposure period. FICC would review the assessed Charge. However, now that FICC is in the Netting Member’s portfolio, and the actual historical security returns. Intraday Backtesting Charge on a proposing to eliminate the Blackout monthly basis to determine if the charge Period Exposure Charge, FICC is FICC would review portfolios with is still applicable and that the amount proposing to amend the applicability of intraday backtesting deficiencies that charged continues to provide the Backtesting Charge in the bring the results for that Netting circumstances described above. Member below the 99% confidence appropriate coverage. In the event that level (i.e., greater than two intraday an affected Netting Member’s trailing (ii) Proposed Change To Give GSD the backtesting deficiency days in a rolling 12-month intraday backtesting coverage Authority To Assess a Backtesting twelve-month period) and determine exceeds 99% (without taking into Charge on an Intraday Basis whether there is an identifiable cause of account historically imposed Intraday FICC is also proposing to amend the ongoing repeat backtesting deficiencies. Backtesting Charges), the Intraday Backtesting Charge to provide that this FICC would also evaluate whether Backtesting Charge would be removed. charge may be assessed if a Netting multiple Netting Members are Member is experiencing backtesting 59 For example, FICC may consider whether the deficiencies during the trading day (i.e., 58 The snapshot would occur once a day. The affected Netting Member would be likely to intraday) because of such Netting timing of the snapshot would be subject to change experience future intraday backtesting deficiencies, Member’s large fluctuations of intraday based upon market conditions and/or settlement the estimated size of such deficiencies, material activity. This snapshot would be taken at the same differences in the three largest intraday backtesting time for all Netting Members. All positions that deficiencies observed over the prior 12-month 57 Similar to the Coverage Charge, the purpose of have settled would be excluded. FICC would take the Backtesting Charge is to address potential additional intraday snapshots and/or change the period, variabilities in its net settlement activity shortfalls in margin charges, however, the Coverage time of the intraday snapshot based upon market subsequent to GSD’s collection of the AM RFD, Charge considers the backtesting results of only the conditions. FICC would include the positions from seasonality in observed intraday backtesting VaR Charge (including the augmented volatility the start-of-day plus any additional positions up to deficiencies and observed market price volatility in adjustment multiplier) and mark-to-market. that time. excess of its historical VaR Charge.

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G. Proposed Change to the Excess existing practice of using Excess Net VaR Charge equals or exceeds a Capital Premium Calculation for Broker Capital (which is the difference between percentage increase (as determined by Netting Members, Inter-Dealer Broker the Net Capital and the minimum FICC from time to time) of the VaR Netting Members and Dealer Netting regulatory Net Capital) as the basis for Charge that was included in the most Members the Excess Capital Premium. recently collected Required Fund FICC is proposing to move to a net H. GSD’s Existing Calculation and Deposit including, if applicable, any capital measure for Broker Netting Assessment of Intraday Supplemental subsequently collected Intraday Members, Inter-Dealer Broker Netting Fund Deposit Amounts Supplemental Fund Deposit (the Members and Dealer Netting Members ‘‘Percentage Threshold’’). The third that would align the Excess Capital Separate and apart from the AM RFD Parameter Break evaluates whether a Premium for such Members to a and the PM RFD, the GSD Rules give Netting Member is experiencing measure that is consistent with the FICC the existing authority to collect backtesting results below the 99% equity capital measure that is used for Intraday Supplemental Fund Deposits confidence level (the ‘‘Coverage from Netting Members.62 Through this Bank Netting Members in the Excess Target’’). Capital Premium calculation. filing, FICC is providing transparency Currently, the Excess Capital with respect to GSD’s existing (a) The Dollar Threshold Premium is determined based on the calculation of Intraday Supplemental The purpose of the Dollar Threshold amount that a Netting Member’s Fund Deposit amounts. Required Fund Deposit exceeds its Pursuant to the GSD Rules, the is to identify Netting Members with Excess Capital.60 Only Netting Members Intraday Supplemental Fund Deposits is additional risk exposures that represent that are brokers or dealers registered determined based on GSD’s a substantial portion of the Clearing under Section 15 of the Act are required observations of a Netting Member’s Fund. FICC believes these Netting to report Excess Net Capital figures to simulated VaR Charge as it is re- Members pose an increased risk of loss FICC while other Netting Members calculated throughout the trading day to GSD because the coverage provided report net capital or equity capital. If a based on the open positions of such by the Clearing Fund (which is designed Netting Member is not a broker/dealer, Member’s portfolio at designated times to cover the aggregate losses of all FICC would use net capital or equity (the ‘‘Intraday VaR Charge’’).63 FICC is Netting Members’ portfolios) would be capital, as applicable (based on the type proposing to provide transparency with substantially impacted by large of regulation that such Netting Member respect to its existing authority to exposures. In other words, in the event is subject to) in order to calculate its calculate and assess the Intraday that a Netting Member’s Required Fund Excess Capital Premium. Supplemental Fund Deposit as Deposit is not sufficient to satisfy losses FICC is proposing this change because described in further detail below. to GSD caused by the liquidation of the of the Commission’s amendments to The Intraday Supplemental Fund defaulted Netting Member’s portfolio, Rule 15c3–1 (the ‘‘Net Capital Rule’’), Deposit is designed to mitigate exposure FICC will use the Clearing Fund to which were adopted in 2013.61 The to GSD that results from large satisfy such losses. However, because amendments are designed to promote a fluctuations in a Netting Member’s the Clearing Fund must be available to broker/dealer’s capital quality and portfolio due to new and settled trade satisfy potential losses that may arise require the maintenance of ‘‘net capital’’ activities that are not otherwise covered from any Netting Member’s defaults, (i.e., capital in excess of liabilities) in by a Netting Member’s recently GSD will be exposed to a significant risk specified amounts as determined by the collected Required Fund Deposit. FICC of loss if a defaulted Netting Member’s type of business conducted. The Net determines whether to assess an additional risk exposure accounted for a Capital Rule is designed to ensure the Intraday Supplemental Fund Deposit by substantial portion of the Clearing Fund. availability of funds and assets tracking three criteria (each, a (including securities) in the event that a ‘‘Parameter Break’’) for each Netting The Dollar Threshold is set to an broker/dealer’s liquidation becomes Member. The first Parameter Break amount that would help to ensure that necessary. The Net Capital Rule evaluates whether a Netting Member’s the aggregate additional risk exposure of represents a net worth perspective, Intraday VaR Charge equals or exceeds all Netting Members does not exceed which is adjusted by unrealized profit a set dollar amount (as determined by 5% of the Clearing Fund. FICC believes or loss, deferred tax provisions, and FICC from time to time) when compared that the availability of at least 95% of certain liabilities as detailed in the rule. to the VaR Charge that was included in the Clearing Fund to satisfy all other It also includes deductions and offsets, the most recently collected Required liquidation losses caused by a defaulted and requires that a broker/dealer Fund Deposit including, any Netting Member is sufficient to mitigate demonstrate compliance with the Net subsequently collected Intraday risks posed to FICC by such losses. Capital Rule including maintaining Supplemental Fund Deposit (the ‘‘Dollar Currently, the Dollar Threshold sufficient net capital at all times Threshold’’). The second Parameter equals a change in a Netting Member’s (including intraday). Break evaluates whether the Intraday Intraday VaR Charge that equals or FICC believes that the Net Capital exceeds $1,000,000 when compared to Rule is an effective process of separating 62 As described above in section A.—The the VaR Charge that was included in the liquid and illiquid assets, and Required Fund Deposit and Clearing Fund most recently collected Required Fund computing a broker/dealer’s regulatory Calculation Overview, GSD calculates and collects Deposit including, if applicable, any net capital that should replace GSD’s each Netting Member’s Required Fund Deposit twice each business day. The AM RFD is collected subsequently collected Intraday at 9:30 a.m. (E.T.) and is comprised of a VaR Charge Supplemental Fund Deposit. On an 60 Pursuant to the GSD Rules, the term ‘‘Excess that is based on each Netting Member’s portfolio at Capital’’ means Excess Net Capital, net assets or the end of the trading day. The PM RFD is collected annual basis, FICC assesses the equity capital as applicable, to a Netting Member at 2:45 p.m. and is comprised of a VaR Charge that sufficiency of the Dollar Threshold, and based on its type of regulation. See GSD Rule 1, is based on a snapshot of each Netting Member’s may adjust the Dollar Threshold if FICC supra note 4. portfolio collected at noon and, if applicable, an determines that an adjustment is 61 See 17 CFR 240.15c3–1. Securities Exchange Intraday Supplemental Fund Deposit collected after Act Release No. 34–70072 (July 30, 2013), 78 FR noon. necessary to provide GSD with 51823 (August 21, 2013) (File No. S7–08–07). 63 See Rule 4 Section 2a, supra note 4. reasonable coverage.

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(b) The Percentage Threshold (d) Assessment and Collection of the I. Delayed Implementation of the Intraday Supplemental Fund Deposits Proposed Rule Change The purpose of the Percentage Threshold is to identify Netting In the event that FICC determines that This proposed rule change would Members with Intraday VaR Charge a Netting Member’s additional risk become operative 45 business days after amounts that reflect significant changes exposure breaches all three Parameter the later date of the Commission’s when such amounts are compared to the Breaks, FICC will assess an Intraday approval of this proposed rule change VaR Charge that was included as a Supplemental Fund Deposit. Should and its notice of no objection to FICC’s component in such Netting Member’s FICC determine that certain market related advance notice filing (the most recently collected Required Fund conditions exist 65 FICC would impose ‘‘Advance Notice Filing’’).69 The Deposit. FICC believes that these an Intraday Supplemental Fund Deposit delayed implementation is designed to Netting Members pose an increased risk if a Netting Member’s Intraday VaR give Netting Members the opportunity of loss to GSD because the most recently Charge breaches the Dollar Amount to assess the impact that the proposed collected VaR Charge (which is threshold and the Percentage Threshold rule change would have on their designed to cover estimated losses to a notwithstanding the fact that the Required Fund Deposit. portfolio over a three-day liquidation Coverage Target has not been breached Prior to the effective date, FICC would period at least 99% of the time) may not by such Netting Member.66 In addition, add a legend to the GSD Rules to state adequately reflect a Netting Member’s during such market conditions, the that the specified changes to the GSD portfolio with such Netting Member’s Dollar Threshold and Percentage Rules are approved but not yet significant intraday changes in Threshold may be reduced if FICC operative, and to provide the date such additional risk exposure. Thus, in the determines a Netting Member’s approved changes would become event that the Netting Member defaults portfolios may present relatively greater operative. The legend would also during the trading day the Netting risks to FICC since the most recently include the file numbers of the Member’s most recently collected collected Required Fund Deposit. Any approved proposed rule change and Required Fund Deposit may be such reduction will not cause the Dollar Advance Notice Filing and would state insufficient to cover the liquidation of Threshold to be less than $250,000 and that once operative, the legend would its portfolio within a three-day the Percentage Threshold to be less than automatically be removed from the GSD liquidation period. 5%. Rules. FICC has the discretion to waive or J. Description of the Proposed Changes Currently, the Percentage Threshold is 67 equal to a Netting Member’s Intraday change Intraday Supplemental Fund to the Text of the GSD Rules VaR Charge that equals or exceeds 100% Deposit amounts if it determines that a Netting Member’s additional risk 1. Proposed Changes to GSD Rule 1 of the most recently calculated VaR (Definitions) Charge included in the most recently exposure and/or breach of a Parameter collected Required Fund Deposit Break does not accurately reflect GSD’s FICC is proposing to amend the term exposure to the fluctuations in the ‘‘Backtesting Charge’’ to provide that a including, if applicable, any 68 subsequently collected Intraday Netting Member’s portfolio. Given that GCF Counterparty’s backtesting Supplemental Fund Deposit. On an there are numerous factors that could deficiencies attributable to annual basis, FICC assesses the result in a Netting Member’s additional collateralized mortgage-backed sufficiency of the Percentage Threshold risk exposure and/or breach of a securities during the Blackout Period and may adjust the Percentage Parameter Break, FICC believes that it is would be considered in FICC’s Threshold if it determines that such important to maintain such discretion in assessment of the applicability of the adjustment is necessary to provide GSD order to help ensure that the Intraday charge. FICC is also proposing to amend with reasonable coverage. Supplemental Fund Deposit is imposed the definition of the term ‘‘Backtesting only on Netting Members with Charge’’ to provide that an Intraday (c) The Coverage Target additional risk exposures that pose a Backtesting Charge may be assessed significant level of risk to FICC. The purpose of the Coverage Target is based on the backtesting results of a Netting Member’s intraday portfolio. In to identify Netting Members with 65 Examples include but are not limited to (i) backtesting results 64 below the 99% order to differentiate the Intraday sudden swings in an equity index or (ii) movements Backtesting charge from the existing confidence level (i.e., greater than two in the U.S. Treasury yields and mortgage-backed deficiency days in a rolling 12-month securities spreads that are outside of historically application of the Backtesting Charge, period) as reported in the most current observed market moves. the existing charge would be referred to 66 In certain market condition, a Netting month. FICC believes that these Netting as the ‘‘Regular Backtesting Charge.’’ As Member’s backtesting coverage may not accurately a result of this proposed change, FICC Members pose an increased risk of loss reflect the risks posed by such Netting Member’s to FICC because their backtesting portfolio. Therefore, FICC imposes the Intraday would be permitted to assess an deficiencies demonstrate that GSD’ risk- Supplemental Fund on Netting Members that Intraday Backtesting Charge based on a breach the Dollar Threshold and Percentage based margin model has not performed Netting Member’s intraday portfolio and Threshold, despite the fact that such Member may a Regular Backtesting Charge based on as expected based on the Netting not have breached the Coverage Target during Member’s trading activity. Thus, the certain market conditions. a Netting Member’s end of day portfolio. most recently collected Required Fund 67 FICC will not reduce the Intraday As a result of this proposed change, Supplemental Fund Deposit if such reduction will FICC’s calculation of the Intraday Deposit might be insufficient to cover cause the Netting Member’s most recently collected the liquidation of a Netting Member’s Backtesting Charge and the Regular Required Fund Deposit to decrease. In addition, Backtesting Charge could include portfolio within a three-day liquidation FICC will not increase the Intraday VaR Charge to period in the event that such Member an amount that is two times more than a Netting deficiencies attributable to GCF Repo defaults during the trading day. Member’s most recently collected Required Fund Transactions collateralized with Deposit. mortgage-backed securities during the 68 For example, a Netting Member’s breach of the Blackout Period. 64 The referenced backtesting results would only Coverage Target could be due to a shortened reflect the Backtesting Charge if such charge is backtesting look-back period and/or large position collected in the Required Fund Deposit. fluctuations caused by trading errors. 69 See supra note 3.

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FICC is proposing to add the new FICC is proposing to add the proposed changes are consistent with defined term ‘‘Blackout Period Exposure ‘‘Blackout Period Exposure Adjustment’’ Section 17A(b)(3)(F) of the Act,70 and Adjustment’’ to define a new because this would be a new component Rules 17Ad–22(e)(4)(i) and (e)(6)(i), (ii), component in the Required Fund included in the Required Fund Deposit (iii), (iv) and (v), each promulgated Deposit calculation. This component calculation. under the Act,71 for the reasons would apply to all GCF Counterparties FICC is proposing to eliminate the described below. with exposure to mortgage-backed reference to ‘‘Blackout Period Exposure Section 17A(b)(3)(F) 72 of the Act as securities in their portfolio during the Charge’’ because this component would cited above requires, in part, that the Blackout Period. no longer be included in the Required rules of a clearing agency be designed FICC is proposing to delete the term Fund Deposit calculation. ‘‘to assure the safeguarding of securities ‘‘Blackout Period Exposure Charge.’’ FICC is proposing to renumber this and funds which are in the custody or This component would no longer be section in order to accommodate the control of the clearing agency or for necessary because the proposed above-referenced proposed changes. which it is responsible.’’ As described Blackout Period Exposure Adjustment FICC is proposing to define ‘‘Net in detail in Item II.(A)1. above, the would be applied to all GCF Unsettled Position’’ because it is a proposal consists of changes to the Counterparties with exposure to defined term in GSD Rule 1. calculation of GSD’s Required Fund mortgage-backed securities in their FICC is proposing to amend this Deposit. FICC believes that these portfolio. section to state that a haircut method changes would be designed to assure the FICC is proposing to delete the term would be utilized based on the historic safeguarding of securities and funds that ‘‘Coverage Charge’’ because this index volatility model for the purposes are in the custody or control of FICC or component would be eliminated from of calculating the VaR Charge for classes for which it is responsible because the the Required Fund Deposit calculation. of securities that cannot be handled by proposed changes would enable FICC to FICC is proposing to delete the term the VaR model’s methodology. better limit its credit exposure to ‘‘Excess Capital’’ because FICC is FICC is proposing to delete the Netting Members arising out of the proposing to add the new defined term paragraph relating to the Margin Proxy activity in their portfolios. The ‘‘Netting Member Capital.’’ because the Margin Proxy would no proposed changes would collectively FICC is proposing to amend the longer be used to supplement the VaR work to help ensure that FICC calculates definition of the term ‘‘Excess Capital Charge. and collects adequate margin from its Ratio’’ to reflect the replacement of K. Description of the QRM Methodology Netting Members. Specifically, (1) the ‘‘Excess Capital’’ with ‘‘Netting Member proposed change to utilize the Capital.’’ The QRM Methodology document sensitivity approach would better FICC is proposing to change the term provides the methodology by which enable FICC to limit its exposure to ‘‘Intraday Supplemental Clearing Fund FICC would calculate the VaR Charge Netting Members because the sensitivity Deposit’’ to ‘‘Intraday Supplemental with the proposed sensitivity approach approach would incorporate a broad Fund Deposit’’ because the latter is as well as other components of the range of structured risk factors as well consistent with the term that is reflected Required Fund Deposit calculation. The as an extended look-back period that in GSD Rule 4. QRM Methodology document specifies would calculate better margin coverage FICC is proposing to amend the term (i) the model inputs, parameters, for FICC, (2) the proposed use of the ‘‘Margin Proxy’’ to reflect that the assumptions and qualitative Margin Proxy as an alternative volatility Margin Proxy would be used as an adjustments, (ii) the calculation used to calculation would better enable FICC to alternative volatility calculation. generate Required Fund Deposit FICC is proposing to add the new limit its exposure to Netting Members amounts, (iii) additional calculations because it would help to ensure that defined term ‘‘Netting Member Capital’’ used for benchmarking and monitoring to reflect the change to the Net Capital FICC has a margin methodology in place purposes, (iv) theoretical analysis, (v) that effectively measures FICC’s for Broker Netting Members’, Inter- the process by which the VaR Broker Dealer Netting Members’ and exposure to Netting Members in the methodology was developed as well as event that a vendor data disruption Dealer Netting Members’ calculation of its application and limitations, (vi) the Excess Capital Ratio. reduces the reliability of the margin internal business requirements amount calculated by the proposed FICC is proposing to amend the associated with the implementation and definition of the term ‘‘VaR Charge’’ to sensitivity-based VaR model, (3) the ongoing monitoring of the VaR proposed haircut method would better establish that (1) the Margin Proxy methodology, (vii) the model change would be utilized as an alternative enable FICC to limit its exposure to management process and governance Netting Members because it would volatility calculation in the event that framework (which includes the the requisite data used to employ the provide a better assessment of the risks escalation process for adding a stressed associated with classes of securities sensitivity approach is unavailable, and period to the VaR calculation), (viii) the (2) a VaR Floor would be utilized as the with inadequate historical pricing data, haircut methodology, (ix) the Blackout (4) the proposed VaR Floor would better VaR Charge in the event that the Period Exposure Adjustment proposed model based approach yields enable FICC to limit its exposure to calculations, (x) intraday margin Netting Members because it would help an amount that is lower than the VaR calculation, and (xi) the Margin Proxy Floor. to ensure that each Netting Member has calculation. a minimum VaR Charge in the event 2. Proposed Changes to GSD Rule 4 2. Statutory Basis that the proposed VaR model utilizing (Clearing Fund and Loss Allocation) the sensitivity approach yields too low FICC believes that the proposed a VaR Charge for such portfolios, (5) the Proposed Changes to Rule 4 Section 1b changes, as described in Item II.(A)1. proposal to add the proposed Blackout FICC is proposing to eliminate the above, are consistent with the requirements of the Act and the rules reference to ‘‘Coverage Charge’’ because 70 15 U.S.C. 78q–1(b)(3)(F). this component would no longer be and regulations thereunder applicable to 71 17 CFR 240.17Ad–22(e)(4)(i) and (e)(6)(i), (ii), included in the Required Fund Deposit a registered clearing agency. In (iii), (iv) and (v). calculation. particular, FICC believes that the 72 15 U.S.C. 78q–1(b)(3)(F).

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Period Exposure Adjustment as a new Rule 17Ad–22(e)(4)(i) under the Act 74 eliminates the Blackout Period component and the proposal to amend requires a clearing agency to establish, Exposure, Coverage Charge and the Backtesting Charge to consider implement, maintain and enforce augmented volatility adjustment backtesting deficiencies attributable to written policies and procedures multiplier because FICC should not GCF Repo Transactions collateralized reasonably designed to effectively maintain elements of the prior model with mortgage-backed securities during identify, measure, monitor, and manage that would unnecessarily increase the Blackout Period would better enable its credit exposures to participants and Netting Members’ Required Fund FICC to limit its exposure to Netting those exposures arising from its Deposits, (6) the proposal to add the Members because these changes would payment, clearing, and settlement proposed Blackout Period Exposure help to ensure that FICC collects processes by maintaining sufficient Adjustment as a new component would sufficient margin from GCF financial resources to cover its credit limit FICC’s credit exposures during the Counterparties with GCF Repo exposure to each participant fully with Blackout Period caused by GCF Repo Transactions collateralized mortgage- a high degree of confidence. Transactions collateralized mortgage- backed securities with risk FICC believes that the proposed backed securities with risk characteristics that are not effectively changes described in Item II.(A)1. above characteristics that are not effectively captured by the Required Fund Deposit enhance FICC’s ability to identify, captured by the Required Fund Deposit calculation during the Blackout Period, measure, monitor and manage its credit calculation, (7) the proposal to amend (6) the proposed Intraday Backtesting exposures to Netting Members and those the Backtesting Charge to consider Charge would better enable FICC to exposures arising from its payment, backtesting deficiencies attributable to limit its exposure to Netting Members clearing, and settlement processes GCF Repo Transactions collateralized because the proposed changes would because it would help to ensure that with mortgage-backed securities during collectively help to ensure that FICC FICC collects appropriate margin from the Blackout Period would help to maintains sufficient financial resources Netting Members that have backtesting ensure that FICC could cover credit deficiencies during the trading day due to cover its credit exposure to each exposure to GCF Counterparties, (8) the to large fluctuations of intraday trading Netting Member with a high degree of proposed Intraday Backtesting Charge activity that could pose risk to FICC in confidence. would help to ensure that FICC collects the event that such Netting Members Because each of the proposed changes appropriate margin from Netting default during the trading day, and (7) to FICC’s Required Fund Deposit Members that have backtesting the proposed change to the Excess calculation would provide FICC with a Capital Premium calculation would more effective measure of the risks that deficiencies during the trading day due better enable FICC to limit its exposure these calculations were designed to to large fluctuations of intraday trading to Netting Members because it would assess, the proposed changes would activity that could pose risk to FICC in help to ensure that FICC does not permit FICC to more effectively identify, the event that such Netting Members unnecessarily increase its calculation measure, monitor and manage its defaults during the trading day, and (9) and collection of Required Fund Deposit exposures to market price risk, and the proposed change to the Excess amounts for Broker Netting Members, would enable it to better limit its Capital Premium calculation would Inter-Dealer Broker Netting Members exposure to potential losses from help to ensure that FICC does not and Dealer Netting Members. Finally, Netting Member default. Specifically, unnecessarily increase its calculation FICC’s proposal to eliminate the the proposed changes described in Item and collection of Required Fund Deposit Blackout Period Exposure Charge, II.(A)1. above are designed to help amounts for Broker Netting Members, Coverage Charge and augmented ensure that GSD appropriately Inter-Dealer Broker Netting Members volatility adjustment multiplier would calculates and collects margin to cover and Dealer Netting Members. enable FICC to eliminate components its credit exposure to each Netting The proposed changes would that do not measure risk as accurately as Member with a high degree of continue to be subject to performance the proposed and existing risk confidence because (1) the proposed reviews by FICC. In the event that management measures, as described change to utilize the sensitivity FICC’s backtesting process reveals that above. approach would provide better margin the VaR Charge, Required Fund Deposit By enabling FICC to better limit its coverage for FICC, (2) the proposed use amounts and/or the Clearing Fund do exposure to Netting Members, the of the Margin Proxy as an alternative not meet FICC’s 99% confidence level, proposed changes described in Item volatility calculation would help to FICC would review its margin II.(A)1. are designed to ensure that, in ensure that FICC has a margin methodologies and assess whether any the event of a Netting Member default, methodology in place that effectively changes should be considered. FICC’s operations would not be measures FICC’s exposure to Netting Therefore, FICC believes the proposed disrupted and non-defaulting Netting Members in the event that a vendor data changes are consistent with the Members would not be exposed to disruption reduces the reliability of the requirements of Rule 17Ad–22(e)(4)(i) of margin amount calculated by the losses they cannot anticipate or control. the Act cited above. proposed sensitivity-based VaR model, In this way, the proposed rules are 75 designed to assure the safeguarding of (3) the proposed haircut method would Rule 17Ad–22(e)(6)(i) under the Act securities and funds which are in the provide a better assessment of the risks requires a clearing agency to establish, custody or control of FICC or for which associated with classes of securities implement, maintain and enforce it is responsible and therefore consistent with inadequate historical pricing data, written policies and procedures with Section 17A(b)(3)(F) of the Act. (4) the proposed VaR Floor would limit reasonably designed to cover its credit In addition, FICC believes that the FICC’s credit exposures to Netting exposures to its participants by proposed changes are consistent with Members in the event that the proposed establishing a risk-based margin system Rules 17Ad–22(e)(4)(i) and (e)(6)(i), (ii), VaR model utilizing the sensitivity that, at a minimum, considers, and (iii), (iv) and (v) of the Act.73 approach yields too low a VaR Charge produces margin levels commensurate for such portfolios, (5) the proposal with, the risks and particular attributes 73 See 17 CFR 240.17Ad–22(e)(4)(i) and (e)(6)(i), (ii), (iii), (iv) and (v). 74 See 17 CFR 240.17Ad–22(e)(4)(i). 75 See 17 CFR 240.17Ad–22(e)(6)(i).

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of each relevant product, portfolio, and activity that could pose risk to FICC in the close out of positions following a market. the event that such Netting Members participant default. FICC believes that the proposed defaults during the trading day, and (9) FICC believes that the proposed changes referenced above in the second the proposed change to the Excess changes are consistent Rule 17Ad– paragraph of this section (each of which Capital Premium calculation would 22(e)(6)(iii) of the Act cited above have been described in detail in Item help to ensure that FICC does not because the proposed changes are II.(A)1. above) are consistent with Rule unnecessarily increase its calculation designed to calculate Required Fund 17Ad–22(e)(6)(i) of the Act cited above and collection of Required Fund Deposit Deposit amounts that are sufficient to because the proposed changes would amounts for Broker Netting Members, cover FICC’s potential future exposure help to ensure that FICC calculates and Inter-Dealer Broker Netting Members to Netting Members in the interval collects adequate Required Fund and Dealer Netting Members. between the last margin collection and Deposit amounts, and that each Netting Therefore, FICC believes that the the close out of positions following a Member’s amount is commensurate proposed changes are consistent with participant default. Specifically, (1) the with the risks and particular attributes the requirements of Rule 17Ad– proposed change to utilize the of each relevant product, portfolio, and 22(e)(6)(i) cited above because the sensitivity approach would provide market. Specifically, (1) the proposed collective proposed rule changes would better margin coverage for FICC, (2) the change to utilize the sensitivity consider, and produce margin levels proposed use of the Margin Proxy as an approach would provide better margin commensurate with, the risks and alternative volatility calculation would coverage for FICC, (2) the proposed use particular attributes of each relevant help to ensure that FICC has a margin of the Margin Proxy as an alternative product, portfolio, and market. methodology in place that effectively volatility calculation would help to Rule 17Ad–22(e)(6)(ii) under the measures FICC’s exposure to Netting ensure that FICC has a margin Act 76 requires a clearing agency to Members in the event that a vendor data methodology in place that effectively establish, implement, maintain and disruption reduces the reliability of the measures FICC’s exposure to Netting enforce written policies and procedures margin amount calculated by the Members in the event that a vendor data reasonably designed to cover its credit proposed sensitivity-based VaR model, disruption reduces the reliability of the exposures to its participants by (3) the proposed haircut method would margin amount calculated by the establishing a risk-based margin system provide a better assessment of the risks proposed sensitivity-based VaR model, that, at a minimum, marks participant associated with classes of securities (3) the proposed haircut method would positions to market and collects margin, with inadequate historical pricing data, provide a better assessment of the risks including variation margin or equivalent (4) the proposed VaR Floor would limit associated with classes of securities charges if relevant, at least daily and FICC’s credit exposures to Netting with inadequate historical pricing data, includes the authority and operational Members in the event that the proposed (4) the proposed VaR Floor would limit capacity to make intraday margin calls VaR model utilizing the sensitivity FICC’s credit exposures to Netting in defined circumstances. approach yields too low a VaR Charge Members in the event that the proposed for such portfolios, (5) the proposal VaR model utilizing the sensitivity FICC believes that the proposed eliminates the Blackout Period approach yields too low a VaR Charge changes are consistent Rule 17Ad– Exposure, Coverage Charge and for such portfolios, (5) the proposal 22(e)(6)(ii) of the Act cited above augmented volatility adjustment eliminates the Blackout Period because the proposed Intraday multiplier because FICC should not Exposure, Coverage Charge and Backtesting Charge would help to maintain elements of the prior model augmented volatility adjustment ensure that FICC collects appropriate that would unnecessarily increase multiplier because FICC should not margin from Netting Members that have Netting Members’ Required Fund maintain elements of the prior model backtesting deficiencies during the Deposits, (6) the proposal to add the that would unnecessarily increase trading day due to large fluctuations of proposed Blackout Period Exposure Netting Members’ Required Fund intraday trading activity that could pose Adjustment as a new component would Deposits, (6) the proposal to add the risk to FICC in the event that such limit FICC’s credit exposures during the proposed Blackout Period Exposure Netting Members defaults during the Blackout Period caused by GCF Repo Adjustment as a new component would trading day. Therefore, FICC believes Transactions collateralized mortgage- limit FICC’s credit exposures during the that the proposed Intraday Backtesting backed securities with risk Blackout Period caused by GCF Repo Charge would provide GSD with the characteristics that are not effectively Transactions collateralized mortgage- authority and operational capacity to captured by the Required Fund Deposit backed securities with risk make intraday margin calls in a manner calculation, (7) the proposal to amend characteristics that are not effectively that is consistent with Rule 17Ad– the Backtesting Charge to consider captured by the Required Fund Deposit 22(e)(6)(ii) of the Act cited above. backtesting deficiencies attributable to calculation, (7) the proposal to amend Rule 17Ad–22(e)(6)(iii) under the GCF Repo Transactions collateralized the Backtesting Charge to consider Act 77 requires a clearing agency to with mortgage-backed securities during backtesting deficiencies attributable to establish, implement, maintain and the Blackout Period would help to GCF Repo Transactions collateralized enforce written policies and procedures ensure that FICC could cover credit with mortgage-backed securities during reasonably designed to cover its credit exposure to GCF Counterparties, (8) the the Blackout Period would help to exposures to its participants by proposed Intraday Backtesting Charge ensure that FICC could cover credit establishing a risk-based margin system would help to ensure that FICC collects exposure to GCF Counterparties, (8) the that, at a minimum, calculates margin appropriate margin from Netting proposed Intraday Backtesting Charge sufficient to cover its potential future Members that have backtesting would help to ensure that FICC collects exposure to participants in the interval deficiencies during the trading day due appropriate margin from Netting between the last margin collection and to large fluctuations of intraday trading Members that have backtesting activity that could pose risk to FICC in deficiencies during the trading day due 76 See 17 CFR 240.17Ad–22(e)(6)(ii). the event that such Netting Members to large fluctuations of intraday trading 77 See 17 CFR 240.17Ad–22(e)(6)(iii). defaults during the trading day, and (9)

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the proposed change to the Excess helping to ensure that sufficient margin proposed change to the calculation of Capital Premium calculation would would be calculated for portfolios that the Required Fund Deposit, the change help to ensure that FICC does not contain these securities. may promote competition. Because (i) unnecessarily increase its calculation FICC also believes that its proposal to all Netting Members are expected to and collection of Required Fund Deposit replace the Blackout Period Exposure experience both increases and decreases amounts for Broker Netting Members, Charge with the Blackout Period in Required Fund Deposits compared to Inter-Dealer Broker Netting Members Exposure Adjustment is consistent with the amounts that would be calculated and Dealer Netting Members. Rule 17Ad–22(e)(6)(v) of the Act cited using the existing methodology, Therefore, FICC believes that the above because the proposed Blackout depending on each Netting Member’s proposed changes would be consistent Period Exposure Adjustment would particular portfolio and market with Rule 17Ad–22(e)(6)(iii) of the Act limit FICC’s credit exposures during the conditions, and (ii) no particular cited above because the proposed rules Blackout Period caused by portfolios category of Netting Member is expected changes would collectively be designed with collateralized mortgage-backed to experience materially greater to help ensure that FICC calculates securities with risk characteristics that increases or decreases than other Required Fund Deposit amounts that are are not effectively captured by the Netting Members, FICC believes that the sufficient to cover FICC’s potential Required Fund Deposit calculation. proposed change will not impose a future exposure to Netting Members in Therefore, FICC believes that the significant burden on competition. the interval between the last margin proposed haircut method and the FICC believes that any burden on collection and the close out of positions proposed Blackout Period Exposure competition that is created by the following a participant default. Adjustment are consistent with Rule proposed rule change is necessary in Rule 17Ad–22(e)(6)(iv) under the 17Ad–22(e)(6)(v) of the Act cited above furtherance of the Act because, as Act 78 requires a clearing agency to because the proposed changes described above, the GSD Rules must be establish, implement, maintain and appropriate method for measuring credit designed to assure the safeguarding of enforce written policies and procedures exposure that accounts for relevant securities and funds that are in its reasonably designed to cover its credit product risk factors and portfolio effects custody or control or for which it is exposures to its participants by across products. responsible.81 The proposed rule change establishing a risk-based margin system (B) Clearing Agency’s Statement on would support FICC’s compliance with that, at a minimum, uses reliable Burden on Competition Rules 17Ad–22(e)(4)(i) and (e)(6)(i), (ii), sources of timely price data and (iii), (iv) and (v) under the Act 82 for the procedures and sound valuation models FICC does not believe that the reasons explained above in Item II.(A)2. for addressing circumstances in which implementation of the risk management FICC believes that the risk pricing data are not readily available or changes that comprise the proposed rule management changes that comprise the reliable. change related to the Required Fund proposed rule change are appropriate in FICC believes that the proposed Deposit calculations would impose any furtherance of the Act because they change to implement a haircut method burden on competition that is not enhance FICC’s methodology for for securities that lack sufficient necessary or appropriate in furtherance 80 calculating margin requirements by historical information is consistent with of the Act. implementing an improved risk-based FICC believes that the proposed rule Rule 17Ad–22(e)(6)(iv) of the Act cited approach that provides better coverage change could have an impact upon above because the proposed change for FICC with respect to its credit competition because implementation of would allow FICC to use appropriate exposures to Netting Members while not the risk management changes that market data to estimate an appropriate significantly increasing Netting comprise the proposed rule change margin at a 99% confidence level, thus Members’ Required Fund Deposits would produce changes in the daily helping to ensure that sufficient margin when averaged across time. The calculations of Netting Members’ would be calculated for portfolios that financial impact of and risk Required Fund Deposits, and thus will contain these securities. management benefit of each change is either increase or decrease Netting Rule 17Ad–22(e)(6)(v) under the further described below. Act 79 requires a clearing agency to Members’ Required Fund Deposits for establish, implement, maintain and each day when compared to the Impact of the Proposed Sensitivity enforce written policies and procedures calculation of the Required Fund Approach reasonably designed to cover its credit Deposit methodology that FICC Utilization of the proposed sensitivity exposures to its participants by currently uses. The proposed changes to approach to calculate the VaR Charge establishing a risk-based margin system the calculation of the Required Fund rather than the existing full revaluation that, at a minimum, uses an appropriate Deposit could both burden competition approach with the augmented volatility method for measuring credit exposure and promote competition, at different multiplier is expected, generally, to that accounts for relevant product risk points in time, by altering Netting generate higher VaR Charges during factors and portfolio effects across Members’ Required Fund Deposits. At volatile market periods and lower VaR products. any point in time when the proposed Charges during normal market FICC believes that the proposed change to the calculation of the conditions. While the degree of impact changes to implement a haircut method Required Fund Deposit produces depends upon each Netting Member’s for securities that lack sufficient relatively greater increases in Required particular portfolio, Netting Members historical information is consistent with Fund Deposits for Netting Members that that submit similar portfolios will have Rule 17Ad–22(e)(6)(v) of the Act cited have lower operating margins or higher similar impacts to their VaR Charges above because the haircut method costs of capital than other Netting during both volatile and normal market would allow FICC to use appropriate Members, the proposed change would conditions. To the extent that a Netting market data to estimate an appropriate burden competition. Conversely, when Member’s portfolio may pose a greater margin at a 99% confident level, thus such Netting Members’ Required Fund Deposits are reduced because of the 81 See 15 U.S.C. 78q–1(b)(3)(F). 78 See 17 CFR 240.17Ad–22(e)(6)(iv). 82 See 17 CFR 240.17Ad–22(e)(4)(i) and (e)(6)(i), 79 See 17 CFR 240.17Ad–22(e)(6)(v). 80 See 15 U.S.C. 78q–1(b)(3)(I). (ii), (iii), (iv) and (v).

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risk to FICC than would have been measures FICC’s exposure to Netting enhance FICC’s ability to limit its credit captured under the full revaluation Members in the event that a vendor data exposures to participants in the event approach with the augmented volatility disruption reduces the reliability of the that the proposed VaR model utilizing multiplier, such Netting Member will margin amount calculated by the the sensitivity approach yields too low have higher VaR Charges, particularly proposed sensitivity-based VaR model. a VaR Charge for such portfolios. FICC during volatile market conditions. FICC FICC believes that any burden on believes that any burden on competition believes that any burden on competition competition that derives from the that derives from the proposed VaR that derives from the proposed proposed use of the Margin Proxy is Floor is appropriate in furtherance of sensitivity approach is necessary in appropriate in furtherance of the Act the Act because the proposed VaR Floor furtherance of the Act because the because (1) FICC’s ongoing monitoring would help to ensure that FICC has proposed approach corrects the of the Margin Proxy would help to sufficient margin in the event that FICC deficiencies in the existing model and it ensure that the Margin Proxy calculates is required to liquidate or hedge a large provides better margin coverage for VaR Charges that are reasonably securities portfolio in stressed market FICC. Additionally, FICC believes that consistent with the sensitivity approach conditions. any burden on competition that derives and (2) FICC expects that the Margin from the proposed sensitivity approach Proxy would rarely be invoked. Impact of the Proposed Blackout Period is appropriate in furtherance of the Act Exposure Adjustment Impact of the Proposed Change To because the proposed approach would Utilize a Haircut Method To Measure The proposed Blackout Period produce VaR Charges that are consistent the Risk Exposure of Securities That Exposure Adjustment would be applied, with the current VaR Charge calculation Lack Historical Data in the form of a credit or charge, to the as supplemented by Margin Proxy. VaR Charge for GCF Counterparties with FICC performed an impact study of The proposed haircut method would GCF Repo Transactions collateralized the portfolio level VaR Charge under the be applied to classes of securities that with mortgage-backed securities during proposed methodology for the period cannot be processed by the proposed the Blackout Period. The proposed January 3, 2013 through December 30, VaR model because such securities have Blackout Period Exposure Adjustment is 2016 and backtested the performance of inadequate historical pricing data. The expected to either increase or decrease the CFR that includes the proposed proposed haircut approach could a GCF Counterparty’s Required Fund sensitivity approach from May 2016 produce higher VaR Charges for Netting Deposit amount if such participant has through October 2017. This analysis Members with portfolios with these GCF Repo Transactions collateralized revealed that, under the proposed classes of securities. FICC believes that with mortgage-backed securities during sensitivity approach, the portfolio level any burden on competition that derives the monthly Blackout Period. While the backtesting coverage of the VaR Charge from implementing the proposed degree of the impact would depend is similar to the existing VaR Charge haircut method is necessary in upon the amount and type of mortgage- supplemented by Margin Proxy for the furtherance of the Act because the backed securities used to collateralize majority of Netting Members, but would proposed haircut method provides a GCF Repo Transactions, GCF have increased for 24% of the Netting better assessment of the risks associated Counterparties that have similar Members’ portfolios. The rolling 12 with these securities and therefore amounts of mortgage-backed securities months coverage of CFR for May 2016 would enhance FICC’s ability to limit its are likely to have a similar Blackout through October 2017 using the credit exposures to participants. FICC Period Exposure Adjustment. believes that any burden on competition proposed methodology was more stable Nevertheless, GCF Counterparties that that derives from implementing the than the current methodology and are assessed a Blackout Period Exposure proposed haircut method is appropriate remained above 99% for the entire Adjustment may experience a lower in furtherance of the Act because FICC observation period. Implementing the Required Fund Deposit in the future would continue to manage the market proposed sensitivity approach improves because such GCF Counterparties would risk of clearing these securities by the risk-based model that FICC employs be less likely to experience backtesting conducting analysis on the type of to set margin requirements and better deficiencies and therefore may not be securities that cannot be processed by limits FICC’s credit exposures to subject to a Backtesting Charge. As the proposed VaR model and engaging participants. noted above, the proposed Blackout in periodic reviews of the haircuts used Impact of the Margin Proxy as a Period Exposure Adjustment would be for calculating margin for these types of Proposed Alternative Methodology calculated by (1) projecting an average securities. The Margin Proxy would be used as pay-down rate for the government an alternative methodology to calculate Impact of the Proposed VaR Floor sponsored enterprises (Fannie Mae and the VaR Charge in the event that the The proposed VaR Floor would Freddie Mac) and the Government data needed to operate the VaR model establish a minimum VaR Charge for National Mortgage Association (Ginnie becomes unavailable for an extended Netting Members that have portfolios Mae), respectively, then (2) multiplying 83 period of time. Invocation of the Margin with long and short positions in the projected pay-down rate by the Proxy could produce slightly higher different classes of securities that have net positions of mortgage-backed VaR Charges for Netting Members when a high degree of historical price securities in the related program, and (3) compared to the proposed VaR model correlation. Implementing the VaR Floor summing the results from each program. because the Margin Proxy could reduce will likely increase Required Fund Because the projected pay-down rate certain risk offsets among portfolio Deposits for such Netting Members 83 GSD would calculate the projected average pay- positions. FICC believes that any burden because such portfolios might generate down rates each month using historical pool factor on competition that derives from the a lower VaR Charge using the sensitivity pay-down rates that are weighted by historical proposed use of the Margin Proxy is calculations alone. FICC believes that positions during each of the prior three months. necessary in furtherance of the Act any burden on competition that derives Specifically, the projected pay-down rate for a current Blackout Period would be an average of the because the Margin Proxy would help to from the proposed VaR Floor is weighted averages of pay-down rates for all active ensure that FICC has a margin necessary in furtherance of the Act mortgage pools of the related program during the methodology in place that effectively because the proposed VaR Floor would three most recent preceding months.

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would be an average of the weighted augmented volatility adjustment Impact of the Proposed Change To averages of pay-down rates for all active multiplier are necessary in furtherance Assess an Intraday Backtesting Charge mortgage pools of the related program of the Act because the proposed changes The proposed change to assess an during the three most recent preceding support FICC’s implementation of Intraday Backtesting Charge would months, it is possible that the proposed policies and procedures reasonably increase Netting Members’ Required Blackout Period Exposure Adjustment designed to limit its credit exposures to Fund Deposits because FICC would could overestimate the amount for a participants and use of risk-based apply an Intraday Backtesting Charge in GCF Counterparty with a portfolio that models to set margin requirements. the event that a Netting Member primarily includes slower paying FICC believes that any burden on experiences multiple intraday mortgage-backed securities or competition that derives from backtesting deficiencies. FICC believes underestimate the amount for a GCF eliminating the Coverage Charge and that any burden on competition that Counterparty with a portfolio that derives from the proposed change to primarily includes faster paying augmented volatility adjustment assess an Intraday Backtesting Charge is mortgage-backed securities. FICC multiplier are appropriate in necessary in furtherance of the Act believes that any burden on competition furtherance of the Act because FICC because the proposed Intraday that derives from the proposed Blackout should not maintain elements of the Backtesting Charge would help to Period Exposure Adjustment is prior model that would unnecessarily ensure that FICC collects appropriate necessary in furtherance of the Act increase Netting Members’ Required because the proposed Blackout Period Fund Deposits. margin from Netting Members that have Exposure Adjustment would effectively backtesting deficiencies during the Impact of the Proposed Change To measure and limit FICC’s credit trading day due to large fluctuations of Amend the Backtesting Charge To exposures during the Blackout Period intraday trading activity that could pose caused by portfolios with collateralized Include Backtesting Deficiencies That risk to FICC in the event that such mortgage-backed securities with risk Are Attributable to GCF Repo Netting Members defaults during the characteristics that are not effectively Transactions Collateralized With trading day. FICC believes that any captured by the existing components of Mortgage-Backed Securities During burden on competition that derives from the Required Fund Deposit calculation. Blackout Period the proposed change is appropriate in FICC believes that any burden on furtherance of the Act because the The proposed change to amend the competition that derives from the Intraday Backtesting Charge would be proposed Blackout Period Exposure Backtesting Charge to include commensurate with the portfolio risk Adjustment is appropriate in backtesting deficiencies attributable to that Netting Members clear through furtherance of the Act because the GCF Repo Transactions collateralized GSD. with mortgage-backed securities during proposed Blackout Period Exposure Impact of the Proposed Modification of Adjustment is designed to help ensure the Blackout Period could increase a the Excess Capital Premium for a Broker that GCF Counterparties with GCF Counterparty’s Required Fund Netting Member, Inter-Dealer Broker collateralized mortgage-backed Deposit amount if the third largest Netting Member or Dealer Netting securities maintain a backtesting deficiency amount used to calculate the Member coverage above the 99% confidence Backtesting Charge is larger during the threshold. Further, FICC would Blackout Period. FICC believes that any The proposed change to the Excess Capital Premium formula for a Broker continue to monitor the realized pay- burden on competition that derives from Netting Member, Inter-Dealer Broker down against FICC’s weighted average the proposed change is necessary in Netting Member and Dealer Netting pay-down rates and its vendor’s furtherance of the Act because the Member may reduce such Member’ projected pay-down rates as part of the proposed change would help FICC to model performance monitoring. Further, Required Fund Deposits by using Net maintain its credit exposures to such Capital in GSD’s calculation of the in the event that a GCF Counterparty GCF Repo Participant at a confidence continues to experience backtesting Excess Capital Premium. FICC believes level of at least 99%. FICC believes that that this impact reduces the burden on deficiencies, FICC would apply a any burden on competition that derives Backtesting Charge, which as described competition for Broker Netting from the proposed change is appropriate in section F above, would be amended Members, Inter-Dealer Broker Netting in furtherance of the Act because the to consider backtesting deficiencies Members and Dealer Netting Members attributable to GCF Repo Transactions proposed change would help to ensure because FICC will use a similar capital during the Blackout Period. that FICC collects appropriate margin measure for broker/dealer and banks from a GCF Counterparty with when determining whether an Excess Impact of the Proposed Elimination of exposures due to decreases in the Capital Premium should be applied to the Blackout Period Exposure Charge, collateral value of mortgage-backed their Required Fund Deposit Coverage Charge and Augmented securities during the monthly Blackout calculation. FICC believes that any Volatility Adjustment Multiplier Period that would not be captured by burden on competition that derives from The proposed removal of the Blackout the proposed Blackout Period Exposure modifying the Excess Capital Premium Period Exposure Charge, Coverage Adjustment. FICC believes that is necessary in furtherance of the Act Charge and augmented volatility imposing the proposed Backtesting because the proposed changes support adjustment multiplier would reduce Charge during the Blackout Period FICC’s implementation of policies and Netting Members’ Required Fund protects FICC against the risk that a procedures reasonably designed to limit Deposits by eliminating charges that are defaulted GCF Counterparty’s portfolio its credit exposures to participants and no longer necessary following contains exposure to GCF Repo use of risk-based models to set margin implementation of the other changes Transactions collateralized with requirements. FICC believes change in that comprise the proposed rule change. the burden on competition that derives mortgage-backed securities that would FICC believes that any burden on from modification of the Excess Capital not be adequately captured by the GCF competition that derives from Premium is appropriate in furtherance Counterparty’s Required Fund Deposit. eliminating the Coverage Charge and of the Act because FICC should not

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maintain elements that would number should be included on the SECURITIES AND EXCHANGE unnecessarily increase some Netting subject line if email is used. To help the COMMISSION Members’ Required Fund Deposits. Commission process and review your For the reasons stated above, FICC [Release No. 34–82592; File No. SR– comments more efficiently, please use NYSEArca–2017–99] believes that any burden on competition only one method. The Commission will that derives from risk management post all comments on the Commission’s Self-Regulatory Organizations; NYSE changes is necessary and appropriate in internet website (http://www.sec.gov/ Arca, Inc.; Notice of Filing of furtherance of FICC’s obligations under rules/sro.shtml). Copies of the Amendment No. 2 and Order Instituting the Act and Rules 17Ad–22(b)(i) and submission, all subsequent Proceedings To Determine Whether To (e)(i), (ii), (iii), (iv) and (v) thereunder.84 amendments, all written statements Approve or Disapprove a Proposed (C) Clearing Agency’s Statement on with respect to the proposed rule Rule Change, as Modified by Comments on the Proposed Rule change that are filed with the Amendment No. 2, To List and Trade Change Received From Members, Commission, and all written Shares of the Hartford Schroders Tax- Aware Bond ETF Under NYSE Arca Participants, or Others communications relating to the Rule 8.600–E Written comments relating to the proposed rule change between the proposed rule changes have not been Commission and any person, other than January 26, 2018. solicited or received. FICC will notify those that may be withheld from the I. Introduction the Commission of any written public in accordance with the comments received by FICC. provisions of 5 U.S.C. 552, will be On October 11, 2017, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed III. Date of Effectiveness of the available for website viewing and printing in the Commission’s Public with the Securities and Exchange Proposed Rule Change, and Timing for Commission (‘‘Commission’’), pursuant Commission Action Reference Room, 100 F Street NE, Washington, DC 20549 on official to Section 19(b)(1) of the Securities Within 45 days of the date of Exchange Act of 1934 (‘‘Act’’) 1 and Rule business days between the hours of publication of this notice in the Federal 19b–4 thereunder,2 a proposed rule Register or within such longer period 10:00 a.m. and 3:00 p.m. Copies of the change to list and trade shares up to 90 days (i) as the Commission may filing also will be available for (‘‘Shares’’) of the Hartford Schroders designate if it finds such longer period inspection and copying at the principal Tax-Aware Bond ETF (‘‘Fund’’) under to be appropriate and publishes its office of FICC and on DTCC’s website NYSE Arca Rule 8.600–E. The proposed reasons for so finding or (ii) as to which (http://dtcc.com/legal/sec-rule- rule change was published for comment the self-regulatory organization filings.aspx). All comments received in the Federal Register on October 31, consents, the Commission will: will be posted without change. Persons 2017.3 On November 21, 2017, the (A) By order approve or disapprove submitting comments are cautioned that Exchange filed Amendment No. 1 to the such proposed rule change, or we do not redact or edit personal proposed rule change, which replaced (B) institute proceedings to determine identifying information from comment and superseded the proposed rule whether the proposed rule change submissions. You should submit only change as originally filed. On December should be disapproved. information that you wish to make 14, 2017, pursuant to Section 19(b)(2) of The proposal shall not take effect available publicly. the Act,4 the Commission designated a until all regulatory actions required longer period within which to approve All submissions should refer to File with respect to the proposal are the proposed rule change, disapprove completed. Number SR–FICC–2018–001 and should the proposed rule change, or institute be submitted on or before February 22, IV. Solicitation of Comments proceedings to determine whether to 2018. disapprove the proposed rule change.5 Interested persons are invited to For the Commission, by the Division of On January 18, 2018, the Exchange filed submit written data, views and Trading and Markets, pursuant to delegated Amendment No. 2 to the proposed rule arguments concerning the foregoing, authority.85 change, which replaced and superseded including whether the proposed rule Robert W. Errett, the proposed rule change as modified by change is consistent with the Act. Amendment No. 1.6 The Commission is Comments may be submitted by any of Deputy Secretary. [FR Doc. 2018–01949 Filed 1–31–18; 8:45 am] the following methods: 1 15 U.S.C. 78s(b)(1). Electronic Comments BILLING CODE 8011–01–P 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 81944 • Use the Commission’s internet (October 25, 2017), 82 FR 50461. comment form (http://www.sec.gov/ 4 15 U.S.C. 78s(b)(2). rules/sro.shtml); or 5 See Securities Exchange Act Release No. 82323, • Send an email to rule-comments@ 82 FR 60455 (December 20, 2017). The Commission designated January 29, 2018 as the date by which sec.gov. Please include File Number SR– the Commission shall either approve or disapprove, FICC–2018–001 on the subject line. or institute proceedings to determine whether to disapprove, the proposed rule change. Paper Comments 6 In Amendment No. 2, the Exchange: (1) Stated • Send paper comments in triplicate that State Street Bank and Trust Company will to Secretary, Securities and Exchange serve as transfer agent and custodian for the Fund; (2) removed certain conditions on the definition of Commission, 100 F Street NE, the ‘‘fire wall’’ between the Sub-Adviser and its Washington, DC 20549. broker-dealer subsidiary; (3) represented that All submissions should refer to File personnel who make decisions on the Fund’s portfolio composition must be subject to procedures Number SR–FICC–2018–001. This file designed to prevent the use and dissemination of material, non-public information regarding the 84 See 17 CFR 240.17Ad–22(b) and (e)(i), (ii), (iii), Fund’s portfolio; (4) clarified that cash and cash (iv) and (v). 85 17 CFR 200.30–3(a)(12). equivalents are included in the Fund’s principal

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publishing this notice and order to Fund.10 ALPS Distributors, Inc. will be The Fund may invest in the following solicit comments on the proposed rule the principal underwriter to the Fund. Municipal Securities: General obligation change, as modified by Amendment No. State Street Bank and Trust Company bonds; revenue (or limited obligation) 2, from interested persons and to will serve as transfer agent and bonds; private activity (or industrial institute proceedings pursuant to custodian for the Fund. development) bonds; bonds that are Section 19(b)(2)(B) of the Act 7 to According to the Exchange, the Fund collateralized with agency and/or determine whether to approve or will seek total return on an after-tax treasury securities; municipal notes; disapprove the proposed rule change, as basis and will seek to achieve its municipal lease obligations; and modified by Amendment No. 2. investment objective by investing in a municipal inverse floaters. II. Description of the Proposal, as diversified portfolio of fixed income B. Other Investments Modified by Amendment No. 2 8 debt instruments of varying maturities.11 While the Fund, under normal market The Exchange proposes to list and conditions, will invest principally in the trade Shares of the Fund under NYSE A. Principal Investments securities and financial instruments Arca Rule 8.600–E, which governs the Under normal market conditions,12 described above, the Fund may invest listing and trading of Managed Fund the Fund will invest principally (that is, its remaining assets in the securities and Shares. The Fund is a series of the more than 50% of its assets) in the U.S. financial instruments described below. Hartford Funds Exchange-Traded Trust dollar-denominated fixed income debt The Fund may invest in U.S. and (‘‘Trust’’), which is registered with the instruments described below, and in foreign non-agency ABS, which are Commission as an open-end cash and cash equivalents.13 securities backed by a pool of some management investment company.9 Hartford Funds Management The fixed income debt instruments in underlying asset, including but not Company, LLC (‘‘Manager’’) will be the which the Fund may invest as part of its limited to home equity loans, investment manager to the Fund, and principal investment strategy are installment sale contracts, credit card Schroder Investment Management North securities issued or guaranteed by the receivables, or other assets. America Inc. (‘‘Sub-Adviser’’) will be U.S. government and its agencies, The Fund may invest in U.S. and the sub-adviser to the Fund and perform government-sponsored enterprise foreign non-agency mortgage-related the daily investment of the assets for the securities, corporate bonds, agency securities. Mortgage-related securities mortgage-backed securities (including may be composed of one or more classes investments and specified that for purposes of this ‘‘to be announced’’ or ‘‘TBA’’ and may be structured either as pass- filing, cash equivalents are the short-term transactions), agency asset-backed through securities or collateralized debt instruments enumerated in Commentary .01(c) to securities (‘‘ABS’’), ‘‘Municipal obligations (which include NYSE Arca Rule 8.600–E; (5) provided additional Securities’’ (as described below), information regarding the Fund’s non-principal collateralized bond obligations and investments; (6) specified that restricted securities sovereign debt, and debt securities collateralized loan obligations). are included in the Fund’s non-principal issued by supranational organizations. The Fund may invest in U.S. investments; (7) added an explanation regarding the They may pay fixed, variable, or floating exchange-traded closed-end funds and Manager’s belief that the creation and redemption interest rates. 14 cutoff time (1:00 p.m. Eastern Time) will not have exchange-traded funds (‘‘ETFs’’). The a material impact on an authorized participant’s Fund also may invest in non-exchange- arbitrage opportunities with respect to the Fund; (8) 10 According to the Exchange, neither the traded securities of other registered added a statement that the Manager represents that, Manager nor the Sub-Adviser is registered as a investment companies (i.e., mutual to the extent the Trust effects the creation or broker-dealer, but each is affiliated with a broker- redemption of Shares wholly or partially in cash, dealer. The Exchange states that the Manager and funds). such transactions will be effected in the same Sub-Adviser each has implemented and will The Fund may engage actively in manner for all authorized participants; (9) specified maintain a ‘‘fire wall’’ with respect to such broker- transactions in derivatives (futures, additional quantitative information relating to the dealer affiliate regarding access to information Shares that will be included on the Fund’s website; concerning the composition of and/or changes to options, swaps, and forward rate (10) supplemented the description of the the Fund’s portfolio. In addition, personnel who agreements) as described below. The availability of information for the Fund’s make decisions on the Fund’s portfolio composition Fund will normally use derivatives to investments; (11) defined the term ‘‘periods of high must be subject to procedures designed to prevent supplement the effective management of cash inflows or outflows’’ as used in this filing; (12) the use and dissemination of material, non-public added a statement that the Manager represents that information regarding the Fund’s portfolio. In the its duration profile, to gain exposure to the fixed income weight of the Fund’s portfolio, event (a) the Manager or Sub-Adviser becomes particular securities or markets, in other than holdings in Municipal Securities, will registered as a broker-dealer or newly affiliated with connection with hedging transactions, meet the generic listing requirements of a broker-dealer, or (b) any new adviser or sub- or for purposes of efficient portfolio Commentary .01(b) to NYSE Arca Rule 8.600–E; adviser to the Fund is a registered broker-dealer or (13) stated that the Manager will be the ‘‘Reporting becomes affiliated with a broker-dealer, the management, including managing cash Authority’’ for purposes of NYSE Arca Rule 8.600– applicable adviser or sub-adviser will implement flows or as part of the Fund’s risk E(d)(2)(B)(ii); and (14) made other clarifications, and maintain a fire wall with respect to its relevant management process. corrections, and technical changes. Amendment No. personnel or broker-dealer affiliate regarding access 2 is available at https://www.sec.gov/comments/sr- to information concerning the composition of and/ The Fund may invest in U.S and nysearca-2017-99/nysearca201799-2935844- or changes to the Fund’s portfolio, and will be foreign exchange-traded and over-the 161848.pdf. subject to procedures designed to prevent the use counter (‘‘OTC’’) put and call options. 7 15 U.S.C. 78s(b)(2)(B). and dissemination of material, non-public The Fund may engage in options 8 For more information regarding the Fund and information regarding such portfolio. transactions on any security, index, or 11 In seeking to achieve the Fund’s investment the Shares, see Amendment No. 2, supra note 6. instrument in which it may invest. 9 The Trust is registered under the Investment objective, the Sub-Adviser will employ a tax-aware Company Act of 1940 (‘‘1940 Act’’). On June 26, investing strategy that attempts to realize total 2017, the Trust filed with the Commission its return for shareholders, primarily in the form of 14 For purposes of this filing, ETFs include registration statement on Form N–1A under the current income and price appreciation, by Investment Company Units (as described in NYSE Securities Act of 1933 and under the 1940 Act balancing investment considerations and tax Arca Rule 5.2–E(j)(3)); Portfolio Depositary Receipts relating to the Fund (File Nos. 333–215165 and considerations. (as described in NYSE Arca Rule 8.100–E); and 811–23222). The Exchange states that the 12 The term ‘‘normal market conditions’’ is Managed Fund Shares (as described in NYSE Arca Commission has issued an order granting certain defined in NYSE Arca Rule 8.600–E(c)(5). Rule 8.600–E). The ETFs all will be listed and exemptive relief to the Trust under the 1940 Act. 13 For purposes of this filing, cash equivalents are traded in the U.S. on registered exchanges. The See Investment Company Act Release No. 32454 the short-term instruments enumerated in Fund will not invest in inverse or leveraged (e.g., (January 27, 2017) (File No. 812–13828–01). Commentary .01(c) to NYSE Arca Rule 8.600–E. +2x, ¥2x) index ETFs.

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The Fund may invest in U.S and under normal market conditions, except Rule 8.600–E requires that, on both an foreign exchange-traded and OTC for periods of high cash inflows or initial and continuing basis, currency options. outflows,17 the Fund will satisfy the components that in the aggregate The Fund may invest in U.S. and following criteria: account for at least 75% of the fixed foreign exchange-traded futures 1. The Fund will have a minimum of income weight of the portfolio each contracts and options on futures 20 non-affiliated issuers; have a minimum original principal contracts with respect to equity and 2. No single Municipal Securities amount outstanding of $100 million or debt securities, foreign currencies, issuer will account for more than 10% more. The Exchange states that the Fund aggregates of equity and debt securities of the weight of the Fund’s portfolio; would not meet this requirement, as a (aggregates are composites of equity or 3. No individual bond will account result principally of the Fund’s debt securities that are not tied to a for more than 5% of the weight of the investments in Municipal Securities. commonly known index), interest rates, Fund’s portfolio; The Exchange represents that the Fund’s indices, commodities, and other 4. The Fund will limit its investments investments in Municipal Securities financial instruments. in Municipal Securities of any one state would be subject to the requirements The Fund may enter into the or U.S. territory to 25% of the Fund’s described in Section II.C. above. The following U.S exchange-traded, foreign total assets, except that up to and Exchange notes that the Manager exchange-traded, and OTC swaps: including 40% of the Fund’s total assets represents that the fixed income weight Commodity swaps; total return swaps; may be invested in Municipal Securities of the Fund’s portfolio, other than currency swaps; credit default swaps of issuers in each of California, New holdings in Municipal Securities, will (‘‘CDS’’); CDS index swaps (‘‘CDX’’); York, and Texas; meet the generic listing requirements of asset swaps; inflation swaps; event- 5. The Fund’s investments in Commentary .01(b). The Exchange also linked swaps; interest rate swaps; swaps Municipal Securities will be diversified represents that, other than Commentary on specific securities or indices; and among issuers in at least 10 states and .01(b)(1), the Fund’s portfolio will meet swaps on rates (such as mortgage U.S. territories; and all other requirements of NYSE Arca prepayment rates). The Fund may invest 6. The Fund will be diversified among Rule 8.600–E. in U.S. exchange-traded and OTC a minimum of five different sectors of III. Proceedings To Determine Whether municipal derivatives (i.e., municipal the Municipal Securities market.18 To Approve or Disapprove SR– credit default swaps, municipal market The Exchange states that pre-refunded NYSEArca–2017–99, as Modified by data derivatives, rate locks, caps, bonds will be excluded from the above Amendment No. 2, and Grounds for collars, and floors). The Fund may also limits given that they have a high level Disapproval Under Consideration enter into options on swap agreements of credit quality and liquidity.19 (‘‘swaptions’’).15 The Commission is instituting The Fund may enter into forward rate D. Application of Generic Listing proceedings pursuant to Section 20 agreements. Requirements 19(b)(2)(B) of the Act to determine The Fund may invest in inflation- The Exchange proposes to list and whether the proposed rule change, as protected debt securities. trade the Shares under NYSE Arca Rule modified by Amendment No. 2, should The Fund may invest in convertible 8.600–E, which includes generic listing be approved or disapproved. Institution and nonconvertible preferred stock requirements for Managed Fund Shares. of such proceedings is appropriate at traded OTC or on U.S. and non-U.S. According to the Exchange, the Fund’s this time in view of the legal and policy exchanges. portfolio will not meet all of the generic issues raised by the proposed rule The Fund may hold restricted listing requirements of Commentary .01 change. Institution of proceedings does securities, which are securities that to NYSE Arca Rule 8.600–E. not indicate that the Commission has cannot be offered for public resale Commentary .01(b)(1) to NYSE Arca reached any conclusions with respect to unless registered under the applicable any of the issues involved. Rather, as securities laws or that have a 17 ‘‘Periods of high cash inflows or outflows’’ as described below, the Commission seeks contractual restriction that prohibits or used in this filing means rolling periods of seven and encourages interested persons to limits their resale.16 calendar days during which inflows or outflows of provide comments on the proposed rule cash, in the aggregate, exceed 10% of the Fund’s net change, as modified by Amendment No. With respect to any of the Fund’s assets as of the opening of business on the first day investments, the Fund may invest in of such periods. During such periods, the Fund may 2. when-issued and delayed delivery depart from its principal investment strategies; for Pursuant to Section 19(b)(2)(B) of the securities and forward commitments. example, it may hold a higher than normal Act,21 the Commission is providing proportion of its assets in cash. notice of the grounds for disapproval C. Investment Restrictions 18 The Fund’s investments in Municipal under consideration. The Commission is Securities will include investments in state and The Exchange represents that the local (e.g., county, city, town) Municipal Securities instituting proceedings to allow for Fund’s investments will be consistent relating to such sectors as the following: airports; additional analysis of the proposal’s with its investment goal and will not be bridges and highways; hospitals; housing; jails; consistency with Section 6(b)(5) of the mass transportation; nursing homes; parks; public Act, which requires, among other used to provide multiple returns of a buildings; recreational facilities; school facilities; benchmark or to produce leveraged streets; and water and sewer works. things, that the rules of a national returns. 19 The Exchange states that pre-refunded bonds securities exchange be ‘‘designed to With respect to the Fund’s (also known as refunded or escrow-secured bonds) prevent fraudulent and manipulative investments in Municipal Securities, have a high level of credit quality and liquidity acts and practices, to promote just and because the issuer ‘‘pre-refunds’’ the bond by setting aside in advance all or a portion of the equitable principles of trade,’’ and ‘‘to 15 Options on swaps are traded OTC. In the event amount to be paid to the bondholders when the protect investors and the public that there are exchange-traded options on swaps, bond is called. Generally, an issuer uses the interest.’’ 22 As discussed above, the the Fund may invest in these instruments. proceeds from a new bond issue to buy high grade, Exchange notes that, other than 16 Restricted securities include private placement interest bearing debt securities, including direct securities that have not been registered under the obligations of the U.S. government, which are then applicable securities laws, such as Rule 144A deposited in an irrevocable escrow account held by 20 15 U.S.C. 78s(b)(2)(B). securities, and securities of U.S. and non-U.S. a trustee bank to secure all future payments of 21 Id. issuers that are issued pursuant to Regulation S. principal and interest on the pre-refunded bonds. 22 15 U.S.C. 78f(b)(5).

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Commentary .01(b)(1), the Fund’s Rule 19b–4 under the Act,24 any request received will be posted without change. portfolio will meet all other for an opportunity to make an oral Persons submitting comments are requirements of NYSE Arca Rule 8.600– presentation.25 cautioned that we do not redact or edit E. The Commission notes that Interested persons are invited to personal identifying information from Commentary .01(a)(1)(E) to NYSE Arca submit written data, views, and comment submissions. You should Rule 8.600–E requires that, on both an arguments regarding whether the submit only information that you wish initial and continuing basis, the proposed rule change, as modified by to make available publicly. All component stocks of the equity portion Amendment No. 2, should be approved submissions should refer to File of a portfolio that are U.S. Component or disapproved by February 22, 2018. Number SR–NYSEArca–2017–99 and Stocks (as described in NYSE Arca Rule Any person who wishes to file a rebuttal should be submitted by February 22, 5.2–E(j)(3)) be listed on a national to any other person’s submission must 2018. Rebuttal comments should be securities exchange and be NMS Stocks file that rebuttal by March 8, 2018. submitted by March 8, 2018. Comments may be submitted by any as defined in Rule 600 of Regulation For the Commission, by the Division of 23 of the following methods: NMS under the Act. Commentary Trading and Markets, pursuant to delegated .01(a)(2)(E) to NYSE Arca Rule 8.600–E Electronic Comments authority.26 requires that, on both an initial and • Use the Commission’s internet Robert W. Errett, continuing basis, the component stocks comment form (http://www.sec.gov/ Deputy Secretary. of the equity portion of a portfolio that rules/sro.shtml); or [FR Doc. 2018–01952 Filed 1–31–18; 8:45 am] are Non-U.S. Component Stocks (as • Send an email to rule-comments@ BILLING CODE 8011–01–P described in NYSE Arca Rule 5.2– sec.gov. Please include File Number SR– E(j)(3)) be listed and traded on an NYSEArca–2017–99 on the subject line. exchange that has last-sale reporting. In SECURITIES AND EXCHANGE the proposal, the Exchange states that Paper Comments COMMISSION the Fund may invest in non-exchange- • Send paper comments in triplicate traded securities of other registered to Secretary, Securities and Exchange [Release No. 34–82591; File No. SR– BatsBZX–2017–54] investment companies (i.e., mutual Commission, 100 F Street NE, funds) and OTC convertible and Washington, DC 20549–1090. Self-Regulatory Organizations; Bats nonconvertible preferred stocks, but All submissions should refer to File BZX Exchange, Inc.; Notice of Filing of does not explain the application of Number SR–NYSEArca–2017–99. This Amendment No. 4 and Order Commentary .01(a)(1)(E) or Commentary file number should be included on the Approving on an Accelerated Basis a .01(a)(2)(E) (or both) to these subject line if email is used. To help the Proposed Rule Change, as Modified by investments, and why these investments Commission process and review your Amendment No. 4 Thereto, To List and are consistent with the Act. The comments more efficiently, please use Trade Shares of the iShares Inflation Commission seeks commenters’ views only one method. The Commission will Hedged Corporate Bond ETF Under on these aspects of the proposal, and post all comments on the Commission’s Rule 14.11(i), Managed Fund Shares whether the Exchange’s statements and internet website (http://www.sec.gov/ representations support a determination rules/sro.shtml). Copies of the January 26, 2018. that the listing and trading of the Shares submission, all subsequent I. Introduction would be consistent with Section 6(b)(5) amendments, all written statements of the Act. with respect to the proposed rule On September 7, 2017, Bats BZX IV. Procedure: Request for Written change that are filed with the Exchange, Inc. (‘‘BZX’’ or ‘‘Exchange’’) Comments Commission, and all written filed with the Securities and Exchange communications relating to the Commission (‘‘Commission’’), pursuant The Commission requests that proposed rule change between the to Section 19(b)(1) of the Securities 1 interested persons provide written Commission and any person, other than Exchange Act of 1934 (‘‘Act’’) and Rule 2 submissions of their views, data, and those that may be withheld from the 19b–4 thereunder, a proposed rule arguments with respect to the issues public in accordance with the change to list and trade Shares identified above, as well as any other provisions of 5 U.S.C. 552, will be (‘‘Shares’’) of the iShares Inflation concerns they may have with the available for website viewing and Hedged Corporate Bond ETF (‘‘Fund’’) proposal. In particular, the Commission printing in the Commission’s Public under Exchange Rule 14.11(i) invites the written views of interested Reference Room, 100 F Street NE, (‘‘Managed Fund Shares’’). The persons concerning whether the Washington, DC 20549, on official Commission published notice of the proposed rule change, as modified by business days between the hours of proposed rule change in the Federal 3 Amendment No. 2, is consistent with 10:00 a.m. and 3:00 p.m. Copies of the Register on September 27, 2017. On Section 6(b)(5) or any other provision of filing also will be available for November 7, 2017, pursuant to Section 4 the Act, or the rules and regulations inspection and copying at the principal 19(b)(2) of the Act, the Commission thereunder. Although there do not office of the Exchange. All comments designated a longer period within which appear to be any issues relevant to to approve the proposed rule change, approval or disapproval that would be 24 17 CFR 240.19b–4. disapprove the proposed rule change, or facilitated by an oral presentation of 25 Section 19(b)(2) of the Act, as amended by the institute proceedings to determine views, data, and arguments, the Securities Acts Amendments of 1975, Public Law whether to disapprove the proposed Commission will consider, pursuant to 94–29 (June 4, 1975), grants the Commission flexibility to determine what type of proceeding— 26 17 CFR 200.30–3(a)(12); 17 CFR 200.30– either oral or notice and opportunity for written 3(a)(57). 23 Commentary .01(a)(1)(F) to NYSE Arca Rule comments—is appropriate for consideration of a 1 8.600–E provides that American Depositary particular proposal by a self-regulatory 15 U.S.C. 78s(b)(1). Receipts (‘‘ADRs’’) in a portfolio may be exchange- organization. See Securities Acts Amendments of 2 17 CFR 240.19b–4. traded or non-exchange-traded, but no more than 1975, Senate Comm. on Banking, Housing & Urban 3 See Securities Exchange Act Release No. 81671 10% of the equity weight of a portfolio may consist Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (September 21, 2017), 82 FR 45103. of non-exchange-traded ADRs. (1975). 4 15 U.S.C. 78s(b)(2).

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rule change.5 On December 8, 2017, the comments on the proposed rule change. Exchange.9 The Fund will be an actively Exchange submitted Amendment No. 1 The Commission is publishing this managed exchange-traded fund that to the proposed rule change. On notice to solicit comments on seeks to mitigate the inflation risk of a December 15, 2017, the Exchange Amendment No. 4 from interested portfolio composed of U.S. dollar- withdrew Amendment No.1 and persons, and is approving the proposed denominated investment-grade submitted Amendment No. 2 to the rule change, as modified by Amendment corporate bonds either through holding proposed rule change, which amended No. 4, on an accelerated basis. such bonds or through holding and replaced in its entirety the proposed exchange-traded funds (‘‘ETFs’’) that rule change as originally filed. On II. Description of the Proposed Rule hold such bonds, as further described December 22, 2017, the Commission Change, as Modified by Amendment below. The Exchange submits this instituted proceedings under Section No. 4 proposal in order to allow the Fund to 19(b)(2)(B) of the Act 6 to determine In its filing with the Commission, the hold Inflation Hedging Instruments, as whether to approve or disapprove the Exchange included statements defined below, in a manner that may not proposed rule change.7 On January 9, concerning the purpose of and basis for comply with Rule 14.11(i)(4)(C)(iv)(a),10 2018, the Exchange submitted the proposed rule change and discussed Rule 14.11(i)(4)(C)(iv)(b),11 and/or Rule Amendment No. 3 to the proposed rule any comments it received on the 14.11(i)(4)(C)(v),12 as further described change, which amended and replaced in proposed rule change. The text of these its entirety the proposed rule change, as statements may be examined at the 9 The Commission originally approved BZX Rule modified by Amendment No. 2. On places specified in Item IV below. The 14.11(i) in Securities Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148 (September January, 11, 2018, the Exchange Exchange has prepared summaries, set 6, 2011) (SR–BATS–2011–018) and subsequently submitted Amendment No. 4 to the forth in Sections A, B, and C below, of approved generic listing standards for Managed proposed rule change, which amended the most significant parts of such Fund Shares under Rule 14.11(i) in Securities and replaced in its entirety the proposed statements. Exchange Act Release No. 78396 (July 22, 2016), 81 rule change, as modified by Amendment FR 49698 (July 28, 2016) (SR–BATS–2015–100). 10 Rule 14.11(i)(4)(C)(iv)(a) provides that ‘‘there 8 A. Self-Regulatory Organization’s No. 3. The Commission has received no shall be no limitation to the percentage of the Statement of the Purpose of, and portfolio invested in such holdings; provided, 5 See Securities Exchange Act Release No. 82025, Statutory Basis for, the Proposed Rule however, that in the aggregate, at least 90% of the 82 FR 52763 (November 14, 2017). The Commission Change weight of such holdings invested in futures, designated December 26, 2017, as the date by which exchange-traded options, and listed swaps shall, on it should approve or disapprove, or institute 1. Purpose both an initial and continuing basis, consist of proceedings to determine whether to disapprove, futures, options, and swaps for which the Exchange the proposed rule change. This Amendment No. 4 to SR– may obtain information via the Intermarket 6 15 U.S.C. 78s(b)(2)(B). BatsBZX–2017–54 amends and replaces Surveillance Group (‘‘ISG’’) from other members or 7 See Securities Exchange Act Release No. 82388, in its entirety Amendment No. 3 to SR– affiliates of the ISG or for which the principal 82 FR 61596 (December 28, 2017). market is a market with which the Exchange has a BatsBZX–2017–54, which was comprehensive surveillance sharing agreement, 8 In Amendment No. 4, the Exchange: (1) submitted on January 9, 2017, which calculated using the aggregate gross notional value Identified the adviser of the Fund and made certain of such holdings.’’ The Exchange is proposing that representations relating to the adviser and its amended and replaced in its entirety the Fund be exempt from this requirement only as personnel; (2) clarified the investment strategy and Amendment No. 2 to SR–BatsBZX– it relates to the Fund’s holdings in certain credit holdings of the Fund; (3) supplemented its 2017–54, which was submitted on default swaps, interest rate swaps, and Inflation description of the Inflation Hedging Instruments (as December 15, 2017, which amended and Swaps, as further described below. defined below) that the Fund may invest, including 11 by adding interest rate swaps that are either listed replaced in its entirety the proposal as Rule 14.11(i)(4)(C)(iv)(b) provides that ‘‘the and traded on a U.S. SEF registered with the CFTC originally submitted on September 7, aggregate gross notional value of listed derivatives based on any five or fewer underlying reference or are centrally cleared; (4) stated that the listed 2017. The Exchange submits this interest rate swaps that the Fund may invest in will assets shall not exceed 65% of the weight of the not comply with the generic requirements for listed Amendment No. 3 [sic] in order to portfolio (including gross notional exposures), and derivatives set forth in Rule 14.11(i)(4)(C)(iv)(a) or clarify certain points and add additional the aggregate gross notional value of listed (b) (as further described below) and that the OTC details about the Fund. derivatives based on any single underlying reference asset shall not exceed 30% of the weight interest swaps that the Fund may invest in will not The Exchange proposes to list and comply with the generic requirements for OTC of the portfolio (including gross notional derivatives set forth in Rule 14.11(i)(4)(C)(v) (as trade the Shares under Rule 14.11(i), exposures).’’ The Exchange is proposing that the further described below); (5) represented that the which governs the listing and trading of Fund be exempt only from the requirement of Rule Fund’s investments in derivative instruments will Managed Fund Shares on the 14.11(i)(4)(C)(iv)(b) that prevents the aggregate gross be made in accordance with the Investment notional value of listed derivatives based on any Company Act of 1940 (‘‘1940 Act’’) and consistent single underlying reference asset from exceeding with the Fund’s investment objective and policies, for reasons that, in the view of the Exchange, make 30% of the weight of the portfolio (including gross and that the Fund would take certain actions to trading inadvisable; (f) the Exchange deems the notional exposures). The Exchange is proposing mitigate and disclose leveraging risk; (6) stated that Shares to be equity securities, thus rendering that the Fund be exempt from this requirement as price information for cash equivalents will be trading in the Shares subject to the Exchange’s it relates to the Fund’s holdings in listed available from major market data vendors; (7) made existing rules governing the trading of equity derivatives, which include U.S. Treasury futures, additional representations regarding the Fund and securities; (g) the Exchange has appropriate rules to credit default swaps, and certain Inflation Swaps information relating to the Shares, including that (a) facilitate trading in the Shares during all trading and interest rate swaps, as further described below. the Disclosed Portfolio will be available on the sessions; and (h) prior to the commencement of The Fund will meet the requirement that the issuer’s website free of charge; (b) the Fund’s trading, the Exchange will inform its members in aggregate gross notional value of listed derivatives website will include a form of the prospectus for an Information Circular of the special based on any five or fewer underlying reference the Fund and additional information related to net characteristics and risks associated with trading the assets shall not exceed 65% of the weight of the asset value (‘‘NAV’’) and other applicable Shares; (8) provided additional justification for why portfolio (including gross notional exposures). quantitative information; (c) information regarding the Fund’s proposed investments are consistent 12 Rule 14.11(i)(4)(C)(v) provides that ‘‘the market price and trading volume of the Shares will with the Act; (9) made additional representations portfolio may, on both an initial and continuing be continuously available throughout the day on regarding the ability of the Exchange to surveil basis, hold OTC derivatives, including forwards, brokers’ computer screens and other electronic trading in the Shares and certain of the underlying options, and swaps on commodities, currencies and services and information regarding the previous investments, including that the Exchange has a financial instruments (e.g., stocks, fixed income, day’s closing price, and trading volume for the policy prohibiting the distribution of material non- interest rates, and volatility) or a basket or index of Shares will be published daily in the financial public information by its employees; and (10) made any of the foregoing, however the aggregate gross section of newspapers; (d) quotation and last sale other clarifications, corrections, and technical notional value of OTC Derivatives shall not exceed information for the Shares will be available through changes. Amendment No. 4 is available at https:// 20% of the weight of the portfolio (including gross the Consolidated Tape Association; (e) trading in www.sec.gov/comments/sr-batsbzx-2017-54/ notional exposures).’’ The Exchange is proposing the Shares may be halted for market conditions or batsbzx201754-2916905-161845.pdf. that the Fund be exempt from this requirement only

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below. Otherwise, the Fund will comply and dissemination of material ‘‘Underlying Fund’’), U.S. dollar- with all other listing requirements on an nonpublic information regarding the denominated investment-grade initial and continued listing basis under applicable investment company corporate bonds, in one or more other Rule 14.11(i). portfolio. Rule 14.11(i)(7) is similar to ETFs 16 that principally invest in U.S. The Shares will be offered by the Rule 14.11(b)(5)(A)(i), however, Rule dollar-denominated investment-grade Trust, which was established as a 14.11(i)(7) in connection with the corporate bonds, and in Inflation Delaware statutory trust on June 21, establishment of a ‘‘fire wall’’ between Hedging Instruments, as defined below. 2011. BlackRock Fund Advisors (the the investment adviser and the broker- The Fund will gain exposure to U.S. ‘‘Adviser’’) is the investment adviser to dealer reflects the applicable open-end dollar-denominated investment-grade the Fund. The Trust is registered with fund’s portfolio, not an underlying corporate bonds primarily through the Commission as an open-end benchmark index, as is the case with investing in the Underlying Fund. As an investment company and has filed a index-based funds. The Adviser is not a alternative, the Fund may gain such registration statement on behalf of the registered broker-dealer, but is affiliated exposure by investing in U.S. dollar- Fund on Form N–1A (‘‘Registration with multiple broker-dealers and has denominated investment-grade Statement’’) with the Commission.13 implemented and will maintain ‘‘fire corporate bonds or through other ETFs Rule 14.11(i)(7) provides that, if the walls’’ with respect to such broker- that are listed on a U.S. national investment adviser to the investment dealers regarding access to information securities exchange that principally company issuing Managed Fund Shares concerning the composition and/or invest in U.S. dollar-denominated is affiliated with a broker-dealer, such changes to the Fund’s portfolio. In investment-grade corporate bonds. The investment adviser shall erect and addition, Adviser personnel who make Fund will attempt to mitigate the maintain a ‘‘fire wall’’ between the decisions regarding the Fund’s portfolio inflation risk of the Fund’s exposure to investment adviser and the broker- are subject to procedures designed to U.S. dollar-denominated investment- dealer with respect to access to prevent the use and dissemination of grade corporate bonds primarily through information concerning the composition material nonpublic information the use of either OTC or listed inflation and/or changes to such investment regarding the Fund’s portfolio. In the swaps (i.e., contracts in which the Fund company portfolio.14 In addition, Rule event that (a) the Adviser becomes will make fixed-rate payments based on 14.11(i)(7) further requires that registered as a broker-dealer or newly notional amount while receiving personnel who make decisions on the affiliated with another broker-dealer, or floating-rate payments determined from investment company’s portfolio (b) any new adviser or sub-adviser is a an inflation index) (‘‘Inflation composition must be subject to registered broker-dealer or becomes Swaps’’),17 which are managed on an procedures designed to prevent the use affiliated with a broker-dealer, it will active basis. As an alternative, the Fund implement and maintain a fire wall with may also attempt to mitigate the as it relates to the Fund’s holdings in OTC respect to its relevant personnel or such inflation risk of the underlying derivatives, which include total return swaps and broker-dealer affiliate, as applicable, securities or the Underlying Fund certain Inflation Swaps and interest rate swaps, as regarding access to information through investing in other products further described below. concerning the composition and/or designed to transfer inflation risk from 13 See Registration Statement on Form N–1A for the Trust, dated April 6, 2017 (File Nos. 333– changes to the portfolio, and will be one party to another, including only the 179904 and 811–22649). The descriptions of the subject to procedures designed to following: Treasury Inflation-Protected Fund and the Shares contained herein are based, in prevent the use and dissemination of Securities (‘‘TIPS’’), total return part, on information in the Registration Statement. material non-public information swaps,18 credit default swaps,19 interest The Commission has issued an order granting 20 certain exemptive relief to the Company under the regarding such portfolio. rate swaps, and U.S. Treasury Investment Company Act of 1940 (15 U.S.C. 80a– The Fund intends to qualify each year 1) (‘‘1940 Act’’) (the ‘‘Exemptive Order’’). See as a regulated investment company 16 For purposes of this proposal, the term ETF Investment Company Act Release No. 29571 under Subchapter M of the Internal includes Portfolio Depositary Receipts, Index Fund (January 24, 2011) (File No. 812–13601). Revenue Code of 1986, as amended. Shares, and Managed Fund Shares as defined in 14 An investment adviser to an open-end fund is Rule 14.11(b), (c), and (i), respectively, and their required to be registered under the Investment iShares Inflation Hedged Corporate equivalents on other national securities exchanges. 17 Advisers Act of 1940 (the ‘‘Advisers Act’’). As a Bond ETF See supra notes 10, 11, and 12. All Inflation result, the Adviser and its related personnel are Swaps held by the Fund will be listed and/or subject to the provisions of Rule 204A–1 under the According to the Registration centrally cleared in order to reduce counterparty Advisers Act relating to codes of ethics. This Rule Statement, the Fund will be an actively risk. All listed Inflation Swaps held by the Fund requires investment advisers to adopt a code of will be traded on a U.S. Swap Execution Facility ethics that reflects the fiduciary nature of the managed exchange-traded fund that will registered with the Commodity Futures Trading relationship to clients as well as compliance with seek to mitigate the inflation risk of a Commission. other applicable securities laws. Accordingly, portfolio with exposure to U.S. dollar- 18 See supra note 12. All total return swaps held procedures designed to prevent the communication denominated investment-grade by the Fund will be traded OTC. The Fund will and misuse of non-public information by an attempt to limit counterparty risk in non-cleared investment adviser must be consistent with Rule corporate bonds. The Fund seeks to swap contracts by entering into such contracts only 204A–1 under the Advisers Act. In addition, Rule achieve its investment objective by with counterparties the Adviser believes are 206(4)–7 under the Advisers Act makes it unlawful investing, under Normal Market creditworthy and by limiting the Fund’s exposure for an investment adviser to provide investment Conditions,15 at least 80% of its net to each counterparty. The Adviser will monitor the advice to clients unless such investment adviser has assets in the iShares iBoxx $ Investment creditworthiness of each counterparty and the (i) adopted and implemented written policies and Fund’s exposure to each counterparty on an procedures reasonably designed to prevent Grade Corporate Bond ETF (the ongoing basis. The total return swaps will generally violation, by the investment adviser and its reference TIPS, the Consumer Price Index, or a supervised persons, of the Advisers Act and the 15 As defined in Rule 14.11(i)(3)(E), the term corporate bond index. Commission rules adopted thereunder; (ii) ‘‘Normal Market Conditions’’ includes, but is not 19 See supra notes 10 and 11. Credit default swaps implemented, at a minimum, an annual review limited to, the absence of trading halts in the held by the Fund will be traded on a U.S. Swap regarding the adequacy of the policies and applicable financial markets generally; operational Execution Facility registered with the Commodity procedures established pursuant to subparagraph (i) issues causing dissemination of inaccurate market Futures Trading Commission. above and the effectiveness of their information or system failures; or force majeure 20 See supra note 10, 11, and 12. All interest rate implementation; and (iii) designated an individual type events such as natural or man-made disaster, swaps held by the Fund will be listed and/or (who is a supervised person) responsible for act of God, armed conflict, act of terrorism, riot or centrally cleared in order to reduce counterparty administering the policies and procedures adopted labor disruption, or any similar intervening risk. All listed interest rate swaps held by the Fund under subparagraph (i) above. circumstance. Continued

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futures 21 (collectively with Inflation The Exchange represents that, except Fund or the Shares are not in Swaps, ‘‘Inflation Hedging for the exceptions to BZX Rule compliance with the applicable listing Instruments’’). The Exchange is 14.11(i)(4)(C) described above, the requirements, the Exchange will proposing to allow the Fund to hold up Fund’s proposed investments will commence delisting procedures under to 50% of the weight of its portfolio satisfy, on an initial and continued Exchange Rule 14.12. (including gross notional exposure) in listing basis, all of the generic listing Availability of Information Inflation Hedging Instruments, standards under BZX Rule 14.11(i)(4)(C) collectively, in a manner that may not and all other applicable requirements As noted above, the Fund will comply comply with Rules for Managed Fund Shares under Rule with the requirements for Managed 14.11(i)(4)(C)(iv)(a),22 14.11(i). The Trust is required to comply Fund Shares related to Disclosed 14.11(i)(4)(C)(iv)(b),23 and/or with Rule 10A–3 under the Act for the Portfolio, Net Asset Value, and the 14.11(i)(4)(C)(v),24 as discussed above. initial and continued listing of the Intraday Indicative Value. Additionally, The Fund’s investments, including Shares of the Fund. In addition, the the intra-day, closing and settlement derivatives, will be consistent with the Exchange represents that the Shares of prices of exchange-traded portfolio 1940 Act and the Fund’s investment the Fund will comply with all other assets, including ETFs and futures, will objective and policies and will not be requirements applicable to Managed be readily available from the securities used to enhance leverage (although Fund Shares including, but not limited exchanges and futures exchanges certain derivatives and other to, requirements relating to the trading such securities and futures, as investments may result in leverage).25 dissemination of key information such the case may be, automated quotation That is, while the Fund will be as the Disclosed Portfolio, Net Asset systems, published or other public permitted to borrow as permitted under Value, and the Intraday Indicative sources, or online information services the 1940 Act, the Fund’s investments Value, rules governing the trading of such as Bloomberg or Reuters. Intraday will not be used to seek performance equity securities, trading hours, trading price quotations on both listed and OTC that is the multiple or inverse multiple halts, surveillance, firewalls, and the swaps, TIPS, and fixed income (i.e., 2Xs and 3Xs) of the Fund’s primary information circular, as set forth in instruments are available from major broad-based securities benchmark index Exchange rules applicable to Managed broker-dealer firms and from third- (as defined in Form N–1A). The Fund Fund Shares and the orders approving parties, which may provide prices free will only use those derivatives included such rules. At least 100,000 Shares will with a time delay or in real-time for a in the defined term Inflation Hedging be outstanding upon the paid fee. Price information for cash Instruments. The Fund’s use of commencement of trading. equivalents will be available from major derivative instruments will be Moreover, all of the equity securities market data vendors. The Disclosed collateralized. As noted above, the Fund and futures contracts held by the Fund Portfolio will be available on the will only use derivative instruments in will trade on markets that are a member issuer’s website free of charge. The order to attempt to mitigate the inflation of Intermarket Surveillance Group Fund’s website includes a form of the risk of the U.S. dollar-denominated (‘‘ISG’’) or affiliated with a member of prospectus for the Fund and additional investment-grade corporate bonds. ISG or with which the Exchange has in information related to NAV and other The Exchange notes that the Fund place a comprehensive surveillance applicable quantitative information. may also hold certain fixed income sharing agreement.26 Additionally, the Information regarding market price and securities and cash and cash equivalents Exchange or FINRA, on behalf of the trading volume of the Shares will be in compliance with Rules Exchange, are able to access, as needed, continuously available throughout the 14.11(i)(4)(C)(ii) and (iii) in order to trade information for certain fixed day on brokers’ computer screens and collateralize its derivatives positions. income instruments reported to FINRA’s other electronic services. Quotation and Trade Reporting and Compliance Engine last sale information on the Shares will will be traded on a U.S. Swap Execution Facility (‘‘TRACE’’). All statements and be available through the Consolidated registered with the Commodity Futures Trading representations made in this filing Tape Association. Information regarding Commission the previous day’s closing price and 21 See supra note 11. regarding the description of the 22 See supra note 10. portfolio or reference assets, limitations trading volume for the Shares will be 23 See supra note 11. on portfolio holdings or reference assets, published daily in the financial section 24 See supra note 12. dissemination and availability of index, of newspapers. Trading in the Shares 25 The Fund will include appropriate risk reference asset, and intraday indicative may be halted for market conditions or disclosure in its offering documents, including values, and the applicability of for reasons that, in the view of the leveraging risk. Leveraging risk is the risk that certain transactions of a fund, including a fund’s Exchange rules specified in this filing Exchange, make trading inadvisable. use of derivatives, may give rise to leverage, causing shall constitute continued listing The Exchange deems the Shares to be a fund to be more volatile than if it had not been requirements for the Fund. The issuer equity securities, thus rendering trading leveraged. The Fund’s investments in in derivative in the Shares subject to the Exchange’s instruments will be made in accordance with the has represented to the Exchange that it 1940 Act and consistent with the Fund’s investment will advise the Exchange of any failure existing rules governing the trading of objective and policies. To mitigate leveraging risk, by the Fund or the Shares to comply equity securities. The Exchange has the Fund will segregate or earmark liquid assets with the continued listing requirements, appropriate rules to facilitate trading in determined to be liquid by the Adviser in accordance with procedures established by the and, pursuant to its obligations under the shares during all trading sessions. Trust’s Board and in accordance with the 1940 Act Section 19(g)(1) of the Act, the Exchange Information Circular (or, as permitted by applicable regulations, enter will surveil for compliance with the into certain offsetting positions) to cover its continued listing requirements. If the Prior to the commencement of obligations under derivative instruments. These trading, the Exchange will inform its procedures have been adopted consistent with Section 18 of the 1940 Act and related Commission 26 For a list of the current members and affiliate members in an Information Circular of guidance. See 15 U.S.C. 80a–18; Investment members of ISG, see www.isgportal.com. The the special characteristics and risks Company Act Release No. 10666 (April 18, 1979), Exchange notes that not all components of the associated with trading the Shares. 44 FR 25128 (April 27, 1979); Dreyfus Strategic Disclosed Portfolio for the Fund may trade on Specifically, the Information Circular Investing, Commission No-Action Letter (June 22, markets that are members of ISG or with which the 1987); Merrill Lynch Asset Management, L.P., Exchange has in place a comprehensive will discuss the following: (1) The Commission No-Action Letter (July 2, 1996). surveillance sharing agreement. procedures for purchases and

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redemptions of Shares in Creation Units general, to protect investors and the namely total return swaps, by entering (and that Shares are not individually public interest. into such contracts only with redeemable); (2) BZX Rule 3.7, which The Exchange believes that the counterparties the Adviser believes are imposes suitability obligations on proposed rule change is designed to creditworthy and by limiting the Fund’s Exchange members with respect to prevent fraudulent and manipulative exposure to each counterparty. The recommending transactions in the acts and practices, to promote just and Adviser will monitor the Shares to customers; (3) how equitable principles of trade, to foster creditworthiness of each counterparty information regarding the Intraday cooperation and coordination with and the Fund’s exposure to each Indicative Value and the Disclosed persons engaged in facilitating counterparty on an ongoing basis. OTC Portfolio is disseminated; (4) the risks transactions in securities, to remove Inflation Swaps and interest rate swaps involved in trading the Shares during impediments to and perfect the held by the Fund will be centrally the Pre-Opening 27 and After Hours mechanism of a free and open market cleared. Further, the Exchange notes Trading Sessions 28 when an updated and a national market system and, in that notional principal never changes Intraday Indicative Value and general, to protect investors and the hands in such swaps transactions, and Underlying Index value will not be public interest in that the Shares will it is a theoretical value used to base the calculated or publicly disseminated; (5) meet each of the initial and continued exchanged payments. A more accurate the requirement that members deliver a listing criteria in BZX Rule 14.11(i) representation of the swaps value in prospectus to investors purchasing except that the Fund may not comply order to monitor total counterparty risk newly issued Shares prior to or with Rules 14.11(i)(4)(C)(iv)(a),31 would be the mark-to market value of concurrently with the confirmation of a 14.11(i)(4)(C)(iv)(b),32 and/or the swap since inception, which the transaction; and (6) trading information. 14.11(i)(4)(C)(v).33 The Exchange Adviser generally expects to remain at believes that the liquidity in the around 5% of the Fund’s net assets.36 In addition, the Information Circular Treasury futures markets mitigates the As noted above, the inflation swap will advise members, prior to the concerns that Rule 14.11(i)(4)(C)(iv)(b) market,37 which would include all of commencement of trading, of the is intended to address and that such the listed and OTC swaps that the Fund prospectus delivery requirements liquidity would help prevent the Shares intends to invest in, is large and liquid, applicable to the Fund. Members from being susceptible to manipulation. which the Exchange believes further purchasing Shares from the Fund for Further, the Exchange believes that for mitigates the concerns which Rule resale to investors will deliver a listed swaps, including credit default 14.11(i)(4)(C)(v) is intended to address. prospectus to such investors. The swaps, interest rate swaps, and Inflation As it relates to the requirement in Information Circular will also discuss Swaps, the price transparency and Rule 14.11(i)(4)(C)(iv)(a) that at least any exemptive, no-action and surveillance performed by the 90% of the weight of the listed interpretive relief granted by the applicable swap execution facility derivatives portion of the portfolio be in Commission from any rules under the would similarly act to mitigate the risk listed derivatives for which the Act. of manipulation of the Shares. The Exchange may obtain information via In addition, the Information Circular Exchange also believes that the size of ISG or for which the principal market is will reference that the Fund is subject the inflation swaps market,34 which a market with which the Exchange has to various fees and expenses described would include all of the listed and OTC a comprehensive surveillance sharing in the Registration Statement. The swaps that the Fund intends to invest agreement, the Exchange believes that Information Circular will also disclose in, also mitigates manipulation concerns its surveillance procedures are adequate the trading hours of the Shares of the relating to both listed and OTC swaps to properly monitor the trading of the Fund and the applicable NAV held by the Fund.35 Shares on the Exchange during all calculation time for the Shares. The As it relates to Rule 14.11(i)(4)(C)(v), trading sessions and to deter and detect Information Circular will disclose that which provides that the notional value violations of Exchange rules and the information about the Shares of the of OTC Derivatives shall not exceed applicable federal securities laws. Fund will be publicly available on the 20% of the weight of the portfolio Additionally, all of the instruments that Fund’s website. (including gross notional exposures), in would not meet this requirement would an effort to mitigate counterparty risk nevertheless have a primary market that 2. Statutory Basis and exposure to potentially illiquid and is a swap execution facility that is The Exchange believes that the manipulable derivatives contracts, the registered with and under the regulatory 38 proposal is consistent with Section 6(b) Exchange notes that the Fund will oversight of the CFTC. attempt to limit counterparty risk in Trading of the Shares through the of the Act 29 in general and Section non-cleared OTC swap contracts, Exchange will be subject to the 6(b)(5) of the Act 30 in particular in that Exchange’s surveillance procedures for it is designed to prevent fraudulent and 31 See supra note 10. derivative products, including Managed manipulative acts and practices, to 32 See supra note 11. Fund Shares. All of the futures promote just and equitable principles of 33 See supra note 12. contracts, equity securities, and certain trade, to foster cooperation and 34 For purposes of this discussion, the term of the listed Inflation Swaps, listed coordination with persons engaged in ‘‘inflation swaps market’’ means any swap contract credit default swaps, and listed interest facilitating transactions in securities, to that references either a measure of inflation, an inflation index, or an instrument designed to remove impediments to and perfect the transfer inflation risk from one party to another. 36 The Adviser plans to implement a hedging mechanism of a free and open market 35 According to publicly available numbers from strategy very similar to the strategy that it employs and a national market system and, in LCH. Clearnet Limited, which clears both listed and with interest rate swaps for several other funds, OTC swaps, as of November 28, 2017 there was each of which have approximately 50% of the approximately $2.3 billion in average daily volume weight of their notional exposure in interest rate 27 The Pre-Opening Session is from 8:00 a.m. to in inflation swaps, which would include the credit swaps while each maintains less than 10% 9:30 a.m. Eastern Time. default swaps, interest rate swaps, and Inflation exposure as calculated using mark-to-market. 28 The After Hours Trading Session is from 4:00 Swaps that the Fund intends to invest in, cleared 37 See note 35, supra. p.m. to 5:00 p.m. Eastern Time. through their platform alone and over $241 billion 38 The Exchange represents that not all CFTC 29 15 U.S.C. 78f. in notional interest outstanding in such inflation registered swap execution facilities are members or 30 15 U.S.C. 78f(b)(5). swaps. affiliates of members of the ISG.

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rate swaps held by the Fund will trade B. Self-Regulatory Organization’s states that the Fund will only use those on markets that are a member of ISG or Statement on Burden on Competition derivatives included in the defined term affiliated with a member of ISG or with The Exchange does not believe that Inflation Hedging Instruments and that which the Exchange has in place a the proposed rule change will impose the Fund will only use derivative comprehensive surveillance sharing any burden on competition that is not instruments in order to attempt to agreement. The Exchange, FINRA, on necessary or appropriate in furtherance mitigate the inflation risk of the U.S. behalf of the Exchange, or both will of the purpose of the Act. The Exchange dollar-denominated investment-grade communicate regarding trading in the notes that the proposed rule change, corporate bonds to which the Fund will Shares and the underlying futures rather will facilitate the listing and have exposure. The Exchange states that contracts, equity securities, and certain trading of an additional actively- the Fund’s use of derivative instruments of the listed Inflation Swaps, listed managed exchange-traded product that will be collateralized. In addition, the credit default swaps, and listed interest will enhance competition among both Exchange represents that the Shares of rate swaps held by the Fund with the market participants and listing venues, the Fund will comply with all other ISG, other markets or entities who are to the benefit of investors and the requirements applicable to Managed members or affiliates of the ISG, or with Fund Shares including, but not limited marketplace. which the Exchange has entered into a to, requirements relating to the comprehensive surveillance sharing C. Self-Regulatory Organization’s dissemination of key information such agreement.39 The Exchange, FINRA, on Statement on Comments on the as the Disclosed Portfolio (as defined in behalf of the Exchange, or both may Proposed Rule Change Received From BZX Rule 14.11(i)(3)(B)).51 obtain information regarding trading in Members, Participants or Others The Exchange states that the Fund’s the Shares and the underlying futures The Exchange has neither solicited investments in certain listed credit contracts, equity securities, and certain nor received written comments on the default swaps, certain listed interest rate of the listed Inflation Swaps, listed proposed rule change. swaps, and certain listed Inflation credit default swaps, and listed interest Swaps will not meet the generic listing rate swaps held by the Fund via the ISG III. Discussion and Commission requirement that at least 90% of the from other markets or entities who are Findings weight of the listed derivatives holdings members or affiliates of the ISG or with After careful review, the Commission in the portfolio be in listed derivatives which the Exchange has entered into a finds that the proposed rule change, as for which the Exchange may obtain comprehensive surveillance sharing modified by Amendment No. 4, is information via the ISG from other agreement.40 Additionally, the consistent with the Act and the rules members or affiliates of the ISG or for Exchange or FINRA, on behalf of the and regulations thereunder applicable to which the principal market is a market Exchange, may access, as needed, trade a national securities exchange.48 In with which the Exchange has a information for certain fixed income particular, the Commission finds that comprehensive surveillance sharing 52 instruments reported to FINRA’s Trade the proposed rule change, as modified agreement. The Exchange represents Reporting and Compliance Engine by Amendment No. 4, is consistent with that all of the listed credit default (‘‘TRACE’’). The Exchange has a policy Section 6(b)(5) of the Act,49 which swaps, listed interest rate swaps, and prohibiting the distribution of material requires, among other things, that the listed Inflation Swaps that would not non-public information by its Exchange’s rules be designed to prevent meet this requirement would employees. fraudulent and manipulative acts and nevertheless be listed on a U.S. SEF The Exchange notes that the Fund practices, to promote just and equitable and, therefore, have as a primary market will meet and be subject to all other a SEF registered with, and under the principles of trade, to remove 53 requirements of the Generic Listing impediments to and perfect the regulatory oversight of, the CFTC. Rules and other applicable continued mechanism of a free and open market listing requirements for Managed Fund to cover its obligations under derivative and a national market system, and, in Shares under Rule 14.11(i), including instruments. According to the Exchange, these general, to protect investors and the those requirements regarding the procedures have been adopted consistent with public interest. Section 18 of the 1940 Act and related Commission Disclosed Portfolio and the requirement As noted above, the Fund may hold guidance. In addition, the Fund will include appropriate risk disclosure in its offering that the Disclosed Portfolio and the up to 50% of the weight of its portfolio NAV will be made available to all documents, including leveraging risk. See supra (including gross notional exposure) in note 25. market participants at the same time,41 Inflation Hedging Instruments, 51 Rule 14.11(i)(4)(B)(ii) requires that the Intraday Indicative Value,42 suspension including certain derivatives, in a Disclosed Portfolio will be disseminated at least of trading or removal,43 trading halts,44 once daily and will be made available to all market manner that may not comply with the disclosure,45 and firewalls.46 Further, at participants at the same time. Rule 14.11(i)(3)(B) generic listing requirements in Rules least 100,000 Shares will be outstanding requires that the website for each series of Managed 14.11(i)(4)(C)(iv)(a), 14.11(i)(4)(C)(iv)(b), Fund Shares disclose the following information upon the commencement of trading.47 and 14.11(i)(4)(C)(v).50 The Exchange regarding the Disclosed Portfolio, to the extent For the above reasons, the Exchange applicable: (i) Ticker symbol; (ii) CUSIP or other believes that the proposed rule change identifier; (iii) description of the holding; (iv) the 48 In approving this proposed rule change, the is consistent with the requirements of identity of the security, commodity, index, or other Commission notes that it has considered the asset upon which a derivative is based; (v) the strike Section 6(b)(5) of the Act. proposed rule’s impact on efficiency, competition, price for any options; (vi) the quantity of each and capital formation. See 15 U.S.C. 78c(f). security or other asset held as measured by (a) par 39 See note 26, supra. 49 15 U.S.C. 78f(b)(5). value, (b) notional value, (c) number of shares, (d) 40 See note 26, supra. 50 The Exchange states that the Fund’s number of contracts, and (e) number of units; (vii) 41 See Rules 14.11(i)(4)(A)(ii) and investments in derivative instruments will be made maturity date; (viii) coupon rate; (ix) effective date; 14.11(i)(4)(B)(ii). in accordance with the 1940 Act and consistent (x) market value; and (xi) percentage weighting of the holding in the portfolio. The Exchange 42 See Rule 14.11(i)(4)(B)(i). with the Fund’s investment objective and policies. To mitigate leveraging risk, the Fund will segregate represents that this website information will be 43 See Rule 14.11(i)(4)(B)(iii). or earmark liquid assets determined to be liquid by publicly available free of charge. 44 See Rule 14.11(i)(4)(B)(iv). the Adviser in accordance with procedures 52 See Rule 14.11(i)(4)(C)(iv)(a). 45 See Rule 14.11(i)(6). established by the Trust’s Board and in accordance 53 The Exchange represents that not all CFTC- 46 See Rule 14.11(i)(7). with the 1940 (or, as permitted by applicable registered SEFs are members or affiliates of 47 See Rule 14.11(i)(4)(A)(i). regulations, enter into certain offsetting positions) members of the ISG.

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The Exchange states that the Fund’s value of the OTC swaps to remain at Fund’s website includes a form of the investments in listed derivatives, around 5% of the Fund’s net assets.58 prospectus for the Fund and additional including U.S. Treasury futures, listed Finally, the Exchange states that the data relating to NAV and other credit default swaps, listed Inflation inflation swap market,59 which would applicable quantitative information. Swaps, and listed interest rate swaps, include all of the listed and OTC swaps The Commission also believes that the will not meet the generic listing that the Fund intends to invest in, is proposal is reasonably designed to requirement that the aggregate gross large and liquid, which mitigates the promote fair disclosure of information notional value of listed derivatives concerns the 20% limitation on OTC that may be necessary to price the based on any single underlying derivatives is intended to address.60 Shares appropriately and to prevent reference asset not exceed 30% of the The Commission also finds that the trading when a reasonable degree of weight of the portfolio.54 The Exchange proposal is consistent with Section transparency cannot be assured. As states that it believes the liquidity in the 11A(a)(1)(C)(iii) of the Act,61 which sets required by Rule 14.11(i)(4)(A)(ii), the Treasury futures markets mitigates forth Congress’s finding that it is in the Exchange will obtain a representation manipulation concerns. In addition, as public interest and appropriate for the from the issuer of the Shares that the discussed above, all listed credit default protection of investors and the NAV per Share will be calculated daily swaps, listed interest rate swaps and maintenance of fair and orderly markets and that the NAV and the Disclosed listed Inflation Swaps that the Fund will to assure the availability to brokers, Portfolio will be made available to all invest in will be traded on U.S. SEFs dealers, and investors of information market participants at the same time. registered with the CFTC. The Exchange with respect to quotations for, and Further, trading in the Shares may be states that the price transparency and transactions in, securities. Quotation halted because of market conditions or surveillance performed by the and last-sale information for the Shares for reasons that, in the view of the applicable SEF on which the credit will be available via the Consolidated Exchange, make trading in the Shares default swaps, interest rate swaps, or Tape Association (‘‘CTA’’). Further, as inadvisable.62 Trading in the Shares will Inflation Swaps are listed would act to required by Rule 14.11(i)(4B)(i), the also be subject to Rule 14.11(i)(4)(B)(iv), mitigate the risk of manipulation of the Intraday Indicative Value will be widely which sets forth circumstances under Shares. The Exchange also states that it disseminated by one or more major which Shares of a Fund may be halted. believes that the size of the inflation market data vendors at least every 15 The Exchange states that it has a swaps market,55 which would include seconds during the Exchange’s Regular policy prohibiting the distribution of all of the listed swaps that the Fund Trading Hours (as defined in Rule material, non-public information by its intends to invest in, mitigates 1.5(w))). Information regarding market employees. The Exchange states that the manipulation concerns relating to both price and trading volume of the Shares Adviser is not a registered broker-dealer the listed and OTC swaps held by the will be continually available on a real- but the Adviser is affiliated with Fund.56 time basis throughout the day on multiple broker-dealer and has The Exchange states that the Fund’s brokers’ computer screens and other implemented and will maintain ‘‘fire holdings in OTC derivatives, which electronic services. Information walls’’ with respect to such broker- include OTC total return swaps, OTC regarding the previous day’s closing dealers regarding access to information interest rate swaps, and OTC Inflation price and trading volume information concerning the composition of and/or Swaps, will exceed 20% of the weight for the Shares will be published daily in changes to the Fund’s portfolio. Further, of the portfolio and, therefore, not meet the financial section of newspapers. The the Commission notes that the the generic listing requirements.57 The intra-day, closing and settlement prices Reporting Authority that provides the Exchange states that the Fund will of exchange-traded portfolio assets, Disclosed Portfolio must implement and attempt to limit counterparty risk in including ETFs and futures, will be maintain, or be subject to, procedures non-cleared OTC total return swaps by readily available from the securities designed to prevent the use and entering into such contracts only with exchanges and futures exchanges dissemination of material, non-public counterparties the Adviser believes are trading such securities and futures, as information regarding the actual creditworthy and by limiting the Fund’s the case may be, automated quotation components of the portfolio.63 exposure to each counterparty, and that systems, published or other public The Exchange deems the Shares to be the Adviser will monitor the sources, or online information services, equity securities, thus rendering trading creditworthiness of each counterparty such as Bloomberg or Reuters. Intraday in the Shares subject to the Exchange’s and the Fund’s exposure to each price quotations on both listed and OTC existing rules governing the trading of counterparty on an ongoing basis. In swaps, TIPS, and fixed income equity securities. In support of this addition, the Exchange represents that instruments will be available from major proposal, the Exchange represents that: all OTC Inflation Swaps and OTC broker-dealer firms and from third- (1) Other than Rule interest rate swaps held by the Fund parties, which may provide prices free 14.11(i)(4)(C)(iv)(a), Rule will be centrally cleared. The Exchange with a time delay or in real-time for a 14.11(i)(4)(C)(iv)(b), and Rule also represents that the Adviser paid fee. Price information for cash 14.11(i)(4)(C)(v), the Fund will comply generally expects the mark-to-market equivalents will be available from major with all other requirements for Managed market data vendors. In addition, the Fund Shares under Rule 14.11(i). 54 See Rule 14.11(i)(4)(C)(iv)(b). (2) The Fund may to hold up to 50% 55 See supra note 34. 58 The Exchange states that with respect to of the weight of its portfolio (including 56 The Exchange states that, as of November 28, valuing the OTC swaps in the portfolio, the notional gross notional exposure) in Inflation 2017, according to publicly available data from principal never changes hands, it is a theoretical LCH.Clearnet Limited, there was approximately value used to base the exchanged payments on, and Hedging Instruments, which includes $2.3 billion in average daily volume in inflation a more accurate representation of the swaps value only the listed and OTC derivatives as swaps (which would include the listed and OTC in order to monitor total counterparty risk would described above. The Fund will only credit default swaps, interest rate swaps, and be the mark-to market value of the swap since use derivative instruments to attempt to Inflation Swaps that the Fund intends to invest in) inception. See supra note 36 and accompanying cleared through LCH.Clearnet Limited and over text. mitigate the inflation risk of the $241 billion in notional interest outstanding in such 59 See supra note 34. inflation swaps. See supra note 35. 60 See supra note 56. 62 See Amendment No. 4, supra note 8. 57 See Rule 14.11(i)(4)(C)(v). 61 15 U.S.C. 78k–1(a)(1)(C)(iii). 63 See Rule 14.11(i)(4)(B)(ii)(b).

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portfolio’s exposure to U.S. dollar- newly issued Shares prior to or Comments may be submitted by any of denominated investment-grade concurrently with the confirmation of a the following methods: corporate bonds. transaction; and (f) trading information. Electronic Comments (3) At least 100,000 Shares will be (7) All of the equity securities and outstanding upon the commencement of futures contracts, and certain of the • Use the Commission’s internet trading. listed Inflation Swaps, listed credit comment form (http://www.sec.gov/ (4) Trading of the Shares on the default swaps, and listed interest rate rules/sro.shtml); or • Exchange will be subject to the swaps held by the Fund will trade on Send an email to rule-comments@ Exchange’s surveillance procedures for markets that are a member of ISG or sec.gov. Please include File No. SR– derivative products, and these affiliated with a member of ISG or with BatsBZX–2017–54 on the subject line. procedures are adequate to properly which the Exchange has in place a Paper Comments monitor the trading of the Shares on the comprehensive surveillance sharing • Send paper comments in triplicate Exchange during all trading sessions agreement. and to deter and detect violations of (8) The Exchange has appropriate to Secretary, Securities and Exchange Exchange rules and the applicable rules to facilitate transactions in the Commission, 100 F Street NE, federal securities laws. Shares during all trading sessions. Washington, DC 20549–1090. (5) The Exchange, the Financial (9) For initial and continued listing of All submissions should refer to File No. Industry Regulatory Authority the Shares, the Trust must be in SR–BatsBZX–2017–54. This file number (‘‘FINRA’’) on behalf of the Exchange, or compliance with Rule 10A–3 under the should be included on the subject line both, will communicate regarding Act.64 if email is used. To help the trading in the Shares and the underlying The Exchange represents that all Commission process and review your futures contracts, equity securities, and statements and representations made in comments more efficiently, please use certain of the listed swaps held by the the filing regarding (1) the description of only one method. The Commission will Fund with the ISG, other markets or the portfolio or reference assets; (2) post all comments on the Commission’s entities who are members or affiliates of limitations on portfolio holdings or internet website (http://www.sec.gov/ the ISG, or with which the Exchange has reference assets; (3) dissemination and rules/sro.shtml). Copies of the entered into a comprehensive availability of index, reference asset, submission, all subsequent surveillance sharing agreement. In and Intraday Indicative Values; and (4) amendments, all written statements addition, the Exchange, FINRA on the applicability of Exchange rules with respect to the proposed rule behalf of the Exchange, or both may specified in the rule filing constitute change that are filed with the obtain information regarding trading in continued listing requirements for the Commission, and all written the Shares and the underlying futures Fund. In addition, the issuer has communications relating to the contracts, equity securities, and certain represented to the Exchange that it will proposed rule change between the of the listed swaps held by the Fund via advise the Exchange of any failure by Commission and any person, other than the ISG from other markets or entities the Fund or the Shares to comply with those that may be withheld from the who are members or affiliates of the ISG the continued listing requirements and, public in accordance with the or with which the Exchange has entered pursuant to its obligations under provisions of 5 U.S.C. 552, will be into a comprehensive surveillance Section 19(g)(1) of the Act, the Exchange available for website viewing and sharing agreement. The Exchange or will surveil for compliance with the printing in the Commission’s Public FINRA, on behalf of the Exchange, may continued listing requirements. If the Reference Room, 100 F Street NE, access, as needed, trade information for Fund or the Shares is not in compliance Washington, DC 20549, on official certain fixed income instruments with the applicable listing requirements, business days between the hours of reported to FINRA’s Trade Reporting the Exchange will commence delisting 10:00 a.m. and 3:00 p.m. Copies of such and Compliance Engine. procedures under Exchange Rule 14.12. filing also will be available for (6) Prior to the commencement of This approval order is based on all of inspection and copying at the principal trading, the Exchange will inform its the Exchange’s statements and office of the Exchange. All comments members in an Information Circular of representations, including those set received will be posted without change. the special characteristics and risks forth above and in Amendment No. 4. Persons submitting comments are associated with trading the Shares. For the foregoing reasons, the cautioned that we do not redact or edit Specifically, the Information Circular Commission finds that the proposed personal identifying information from will discuss the following: (a) The rule change, as modified by Amendment comment submissions. You should procedures for purchases and No. 4, is consistent with Section 6(b)(5) submit only information that you wish redemptions of Shares in creation units of the Act 65 and Section to make available publicly. All (and that Shares are not individually 11A(a)(1)(C)(iii) of the Act 66 and the submissions should refer to File No. redeemable); (b) Rule 3.7, which rules and regulations thereunder SR–BatsBZX–2017–54 and should be imposes suitability obligations on applicable to a national securities submitted on or before February 22, Exchange members with respect to exchange. 2018. recommending transactions in the Shares to customers; (c) how IV. Solicitation of Comments on V. Accelerated Approval of Proposed information regarding the Intraday Amendment No. 4 to the Proposed Rule Rule Change, as Modified by Indicative Value and Disclosed Portfolio Change Amendment No. 4 is disseminated; (d) the risks involved Interested persons are invited to The Commission finds good cause to in trading the Shares during the Pre- submit written data, views and approve the proposed rule change, as Opening and After Hours Trading arguments concerning Amendment No. modified by Amendment No. 4, prior to Sessions when an updated Intraday 4 to the proposed rule change. the 30th day after the date of Indicative Value will not be calculated publication of notice of Amendment No. or publicly disseminated; (e) the 64 See 17 CFR 240.10A–3. 4 in the Federal Register. Amendment requirement that members deliver a 65 15 U.S.C. 78f(b)(5). No. 4 supplements the proposal by, prospectus to investors purchasing 66 15 U.S.C. 78k–1(a)(1)(C)(iii). among other things: (1) Providing

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additional information regarding the below, which Items have been prepared with other equity securities traded on Fund’s holdings in Inflation Hedging by the Exchange. The Commission is the Exchange.4 Instruments; (2) making additional publishing this notice to solicit Moreover, the Exchange notes that representations regarding the Fund and comments on the proposed rule change this approach is substantially similar to Shares, including representations from interested persons. the approach taken by NYSE Arca in relating to the Fund’s investments in 2010 in eliminating NYSE Arca Equities I. Self-Regulatory Organization’s derivatives and the ability of the Rule 8.600 Commentary .03, which Statement of the Terms of Substance of Exchange to surveil trading in the restricted the minimum price variation the Proposed Rule Change Shares and certain of the underlying for quoting and order entry for Managed investments; and (3) providing The Exchange proposes to amend Fund Shares to $0.01. Nasdaq Rule 5735 to make a technical additional justification for why the 2. Statutory Basis Fund’s proposed investments are adjustment to its rules to allow sub- consistent with the Act. These changes penny quoting and order entry in The Exchange believes that its assist the Commission in evaluating the Managed Fund Shares. This filing is proposal is consistent with Section 6(b) 5 Exchange’s proposal and in determining substantively identical to the relevant of the Act, in general, and furthers the 6 that the listing and trading of the Shares portion of a NYSE Arca, Inc. filing (SR– objectives of Section 6(b)(5) of the Act, is consistent with the Act. Accordingly, NYSEArca–2010–36).3 in particular, because it is designed to the Commission finds good cause, The text of the proposed rule change prevent fraudulent and manipulative pursuant to Section 19(b)(2) of the is available on the Exchange’s website at acts and practices, to promote just and Act,67 to approve the proposed rule http://nasdaq.cchwallstreet.com, at the equitable principles of trade, to foster change, as modified by Amendment No. principal office of the Exchange, and at cooperation and coordination with 4, on an accelerated basis. the Commission’s Public Reference persons engaged in regulating, clearing, Room. settling, processing information with VI. Conclusion respect to, and facilitating transactions II. Self-Regulatory Organization’s in securities, to remove impediments to, It is therefore ordered, pursuant to Statement of the Purpose of, and 68 and perfect the mechanisms of, a free Section 19(b)(2) of the Act, that the Statutory Basis for, the Proposed Rule and open market and a national market proposed rule change (SR–BatsBZX– Change 2017–54), as modified by Amendment system. No. 4 thereto, be, and it hereby is, In its filing with the Commission, the The Exchange believes that the approved on an accelerated basis. Exchange included statements proposed amendment is consistent with concerning the purpose of and basis for the goal of removing impediments to a For the Commission, by the Division of the proposed rule change and discussed free and open market because the Trading and Markets, pursuant to delegated any comments it received on the changes proposed herein will authority.69 proposed rule change. The text of these substantially harmonize Nasdaq’s sub- Robert W. Errett, statements may be examined at the penny quoting and order entry rules Deputy Secretary. places specified in Item IV below. The with Rule 612 of Regulation NMS which [FR Doc. 2018–01951 Filed 1–31–18; 8:45 am] Exchange has prepared summaries, set allows a minimum pricing increment of BILLING CODE 8011–01–P forth in sections A, B, and C below, of $0.0001 for securities priced less than the most significant aspects of such $1.00. statements. SECURITIES AND EXCHANGE B. Self-Regulatory Organization’s COMMISSION A. Self-Regulatory Organization’s Statement on Burden on Competition Statement of the Purpose of, and [Release No. 34–82589; File No. SR– The Exchange does not believe that NASDAQ–2018–006] Statutory Basis for, the Proposed Rule the proposed rule change will impose Change any burden on competition not Self-Regulatory Organizations; The 1. Purpose necessary or appropriate in furtherance Nasdaq Stock Market LLC; Notice of of the purposes of the Act and the Filing and Immediate Effectiveness of The Exchange proposes to make a proposed rule change may serve to Proposed Rule Change To Make a technical adjustment [sic] its rules to enhance competition and put the Technical Adjustment to its Rules To allow sub-penny quoting of Managed exchange on an equal competitive Allow Sub-Penny Quoting and Order Fund Shares. Currently, Nasdaq Rule footing as it pertains to sub-penny Entry in Managed Fund Shares Priced 5735 restricts the minimum price quoting and order entry for Managed Less Than $1.00 variation for quoting and order entry to Fund Shares. $0.01. Consistent with Regulation NMS January 26, 2018. Rule 612, the Exchange proposes to C. Self-Regulatory Organization’s Pursuant to Section 19(b)(1) of the remove this provision to allow such Statement on Comments on the Securities Exchange Act of 1934 securities to be quoted in a minimum Proposed Rule Change Received From (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 pricing increment of $0.0001 for Members, Participants, or Others notice is hereby given that on January securities priced less than $1.00. The No written comments were either 23, 2018, The Nasdaq Stock Market LLC Exchange notes that it has not had any solicited or received. (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the of the aforementioned securities quote Securities and Exchange Commission below a dollar nor does it anticipate III. Date of Effectiveness of the (‘‘Commission’’) the proposed rule such an occurrence in the reasonably Proposed Rule Change and Timing for change as described in Items I and II foreseeable future. The Exchange simply Commission Action seeks to harmonize the minimum price Because the foregoing proposed rule 67 15 U.S.C. 78s(b)(2). variation in the aforementioned product change does not: (i) Significantly affect 68 15 U.S.C. 78s(b)(2). 69 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 62006 4 See Nasdaq Rule 4613(a)(2)(I). 1 15 U.S.C. 78s(b)(1). (April 29, 2010), 75 FR 25019 (May 6, 2010) (SR– 5 15 U.S.C. 78f(b). 2 17 CFR 240.19b–4. NYSEArca–2010–36). 6 15 U.S.C. 78f(b)(5).

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the protection of investors or the public IV. Solicitation of Comments For the Commission, by the Division of interest; (ii) impose any significant Trading and Markets, pursuant to delegated 13 burden on competition; and (iii) become Interested persons are invited to authority. operative for 30 days from the date on submit written data, views, and Robert W. Errett, which it was filed, or such shorter time arguments concerning the foregoing, Deputy Secretary. as the Commission may designate, it has including whether the proposed rule [FR Doc. 2018–01950 Filed 1–31–18; 8:45 am] become effective pursuant to Section change is consistent with the Act. BILLING CODE 8011–01–P 19(b)(3)(A) of the Act 7 and Rule 19b– Comments may be submitted by any of 4(f)(6) thereunder.8 the following methods: SECURITIES AND EXCHANGE A proposed rule change filed Electronic Comments COMMISSION pursuant to Rule 19b–4(f)(6) under the • Act 9 normally does not become Use the Commission’s internet [Investment Advisers Act Release No. 4849] operative for 30 days after the date of its comment form (http://www.sec.gov/ rules/sro.shtml); or Notice of Intention To Cancel filing. However, Rule 19b–4(f)(6)(iii) 10 Registrations of Certain Investment • permits the Commission to designate a Send an email to rule-comments@ Advisers Pursuant to Section 203(h) of shorter time if such action is consistent sec.gov. Please include File Number SR– the Investment Advisors Act of 1940 with the protection of investors and the NASDAQ–2018–006 on the subject line. public interest. The Exchange has asked January 26, 2018. Paper Comments the Commission to waive the 30-day Notice is given that the Securities and Exchange Commission (the operative delay so that the proposal may • Send paper comments in triplicate ‘‘Commission’’) intends to issue an become operative immediately upon to Secretary, Securities and Exchange filing. As noted above, NYSE Arca, Inc. order or orders, pursuant to Section Commission, 100 F Street NE, 203(h) of the Investment Advisers Act of has already adopted a substantively Washington, DC 20549–1090. identical change to its rules.11 1940 (the ‘‘Act’’), cancelling the According to the Exchange, the All submissions should refer to File registrations of the investment advisers whose names appear in the attached proposed rule change will put the Number SR–NASDAQ–2018–006. This Appendix, hereinafter referred to as the Exchange on an equal competitive file number should be included on the ‘‘registrants’’. footing with respect to sub-penny subject line if email is used. To help the Commission process and review your Section 203(h) of the Act provides, in quoting and order entry for Managed pertinent part, that if the Commission comments more efficiently, please use Fund Shares priced less than $1.00. The finds that any person registered under only one method. The Commission will Commission believes that waiving the Section 203, or who has pending an 30-day operative delay is consistent post all comments on the Commission’s application for registration filed under with the protection of investors and the internet website (http://www.sec.gov/ that section, is no longer in existence, is public interest. Therefore, the rules/sro.shtml). Copies of the not engaged in business as an Commission hereby waives the 30-day submission, all subsequent investment adviser, or is prohibited operative delay and designates the amendments, all written statements from registering as an investment proposal operative upon filing.12 with respect to the proposed rule adviser under section 203A, the At any time within 60 days of the change that are filed with the Commission shall by order cancel the filing of the proposed rule change, the Commission, and all written registration of such person. Commission summarily may communications relating to the Each registrant listed in the attached temporarily suspend such rule change if proposed rule change between the Appendix either (a) has not filed a Form it appears to the Commission that such Commission and any person, other than ADV amendment with the Commission action is necessary or appropriate in the those that may be withheld from the as required by rule 204–1 under the Act public interest, for the protection of public in accordance with the and appears to be no longer in business investors, or otherwise in furtherance of provisions of 5 U.S.C. 552, will be as an investment adviser or (b) has the purposes of the Act. If the available for website viewing and indicated on Form ADV that it is no Commission takes such action, the printing in the Commission’s Public longer eligible to remain registered with Commission shall institute proceedings Reference Room, 100 F Street NE, the Commission as an investment to determine whether the proposed rule Washington, DC 20549 on official adviser but has not filed Form ADV–W change should be approved or business days between the hours of to withdraw its registration. Accordingly, the Commission believes disapproved. 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for that reasonable grounds exist for a finding that these registrants are no 7 inspection and copying at the principal 15 U.S.C. 78s(b)(3)(A). longer in existence, are not engaged in 8 17 CFR 240.19b–4(f)(6). As required under Rule office of the Exchange. All comments business as investment advisers, or are 19b–4(f)(6)(iii), the Exchange provided the received will be posted without change. Commission with written notice of its intent to file prohibited from registering as the proposed rule change, along with a brief Persons submitting comments are investment advisers under section description and the text of the proposed rule cautioned that we do not redact or edit 203A, and that their registrations should change, at least five business days prior to the date personal identifying information from of filing of the proposed rule change, or such be cancelled pursuant to section 203(h) shorter time as designated by the Commission. comment submissions. You should of the Act. 9 17 CFR 240.19b–4(f)(6). submit only information that you wish Notice is also given that any 10 17 CFR 240.19b–4(f)(6)(iii). to make available publicly. All interested person may, by February 26, 11 See supra note 3 and accompanying text. submissions should refer to File 2018, at 5:30 p.m., submit to the 12 For purposes only of waiving the 30-day Number SR–NASDAQ–2018–006 and Commission in writing a request for a operative delay, the Commission has also considered the proposed rule’s impact on should be submitted on or before hearing on the cancellation of the efficiency, competition, and capital formation. See February 22, 2018. 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12).

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registration of any registrant listed in the information stated above, unless an ADDRESSES: The Commission: Secretary, the attached Appendix, accompanied by order or orders for a hearing on the U.S. Securities and Exchange a statement as to the nature of such cancellation shall be issued upon Commission, 100 F Street NE, person’s interest, the reason for such request or upon the Commission’s own Washington, DC 20549–1090. person’s request, and the issues, if any, motion. Persons who requested a FOR FURTHER INFORMATION CONTACT: of fact or law proposed to be hearing, or to be advised as to whether Matthew Cook, Attorney Adviser, at controverted, and the writer may a hearing is ordered, will receive any 202–551–6999; SEC, Division of request to be notified if the Commission notices and orders issued in this matter, Investment Management, Office of should order a hearing thereon. Any including the date of the hearing (if Investment Adviser Regulation, 100 F such communication should be ordered) and any postponements Street NE, Washington, DC 20549–8549. addressed to the SEC’s Secretary at the thereof. Any registrant whose For the Commission, by the Division of address below. registration is cancelled under delegated Investment Management, pursuant to At any time after February 26, 2018, authority may appeal that decision delegated authority.1 the Commission may issue an order or directly to the Commission in Robert W. Errett, orders cancelling the registrations of any accordance with rules 430 and 431 of Deputy Secretary. or all of the registrants listed in the the Commission’s rules of practice (17 attached Appendix, upon the basis of CFR 201.430 and 431). Appendix

SEC No. Full legal name

801–29339 ...... SUMMIT WEALTH MANAGEMENT. 801–31049 ...... MFC ASSET MANAGEMENT PUBLIC COMPANY LIMITED. 801–34345 ...... HUBER JOAN MACMONNIES. 801–55033 ...... FFR ADVISORY LLC. 801–55695 ...... HARTLAND ASSET MANAGEMENT CORP. 801–57335 ...... PAN GEO INVESTMENT INC. 801–60497 ...... GREENWICH ASSET MANAGEMENT GROUP, LLC. 801–60501 ...... UA, LLC. 801–62656 ...... PREMIERSOURCE LLC. 801–62767 ...... STUX CAPITAL MANAGEMENT, LLC. 801–64854 ...... CORESTATES CAPITAL ADVISORS, LLC. 801–65392 ...... MCCONNELL ASSET MANAGEMENT LLC. 801–65693 ...... TITAN CAPITAL GROUP III, LP. 801–65699 ...... BINJAI HILL ASSET MANAGEMENT PTE LTD. 801–67444 ...... CAMLIN ASSET MANAGEMENT, INC. 801–68936 ...... WPN CORP. 801–69479 ...... SUMMIT ASSET STRATEGIES WEALTH MANAGEMENT, LLC. 801–69850 ...... ABLE ALPHA TRADING, LTD. 801–70243 ...... LIGHTSTONE CAPITAL ADVISERS, LLC. 801–71630 ...... HEXAM CAPITAL PARTNERS, LLP. 801–71642 ...... LWA FUND ADVISORS, LLC. 801–72439 ...... EMERGING MANAGERS GROUP, L.P. 801–72722 ...... IGENERATIONS PRIVATE WEALTH MANAGEMENT. 801–72802 ...... 401HARMONY LLC. 801–74225 ...... NOGALES INVESTORS MANAGEMENT, LLC. 801–77991 ...... PRAESTO INVESTMENT ADVISORS INC. 801–78030 ...... VIRGINIA FINANCIAL INNOVATION CORP. 801–78054 ...... ATF EXCHANGE, LLC. 801–78063 ...... VIASOURCE FUNDING GROUP, LLC. 801–78432 ...... HANMARU ASSET MANAGEMENT LLC. 801–78707 ...... FINAPORT AMERICAS INVESTMENT ADVISERS, LLC. 801–78912 ...... STERLING MARKETS LLC. 801–79102 ...... SOUTHERN UTAH WEALTH NAVIGATION, LLC. 801–79138 ...... TAM PORTFOLIOS, LLC. 801–79241 ...... RCG CAPITAL MANAGEMENT, LLC. 801–79574 ...... FRANCES, DOVI DOV. 801–79639 ...... MERRIMAN ASSET MANAGEMENT, INC. 801–80111 ...... GINKGO CAPITAL LIMITED. 801–80121 ...... DBA APEX CAPITAL. 801–80126 ...... GLOBAL SELECT ADVISORS LTD. 801–80237 ...... ONEWALL ADVISORS UK LLP. 801–80333 ...... NIGHTHAWK CAPITAL LIMITED. 801–80532 ...... AVIV ASSET MANAGEMENT, LLC. 801–80773 ...... D. L. WATSON & COMPANY, INC. 801–80849 ...... HIGHTOWER FINANCIAL SOLUTIONS LLC. 801–80870 ...... JUTLAND CAPITAL MANAGEMENT LTD. 801–96231 ...... FFI ADVISORS LLC. 801–96242 ...... PRO WEALTH ADVISORS LLC. 801–100366 ...... PEERAGE NOBLE LLC. 801–106665 ...... QUANTUMSHARES, LLC. 801–106838 ...... FUNDAMENTAL CORPORATE CREDIT US LLC.

1 17 CFR 200.30–5(e)(2).

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SEC No. Full legal name

801–106839 ...... FUNDAMENTAL MANAGERS LLC. 801–107261 ...... GRAHAM WEALTH ADVISORS, LLC. 801–108797 ...... BETASMARTZ ADVISORY LLC. 801–110135 ...... VEST TECHNOLOGIES, INC.

[FR Doc. 2018–01948 Filed 1–31–18; 8:45 am] The Shares will represent units of III. Discussion and Commission BILLING CODE 8011–01–P fractional undivided beneficial interest Findings in and ownership of the Trust. The After careful review, the Commission Trust’s primary objective will be to finds that the Exchange’s proposed rule SECURITIES AND EXCHANGE provide investors with an opportunity change to list and trade the Shares is COMMISSION to invest in gold through the Shares, consistent with the Act and the rules [Release No. 34–82593; File No. SR– have the gold securely stored by Gold and regulations thereunder applicable to NYSEArca–2017–140] Corporation and, if requested by an a national securities exchange.11 In investor, deliver Physical Gold 7 to such particular, the Commission finds that Self-Regulatory Organizations; NYSE investor in exchange for its Shares.8 the proposal is consistent with Section Arca, Inc.; Order Approving a 11A(a)(1)(C)(iii) of the Act,12 which sets The sponsors of the Trust will be Gold Proposed Rule Change To List and forth Congress’ finding that it is in the Corporation (‘‘Custodial Sponsor’’) and Trade Shares of the Perth Mint public interest and appropriate for the Physical Gold ETF Trust Pursuant to Exchange Traded Concepts, LLC (‘‘ETC’’ protection of investors and the NYSE Arca Rule 8.201–E or the ‘‘Administrative Sponsor’’ and, maintenance of fair and orderly markets together with the Custodial Sponsor, the to assure the availability to brokers, January 26, 2018. 9 ‘‘Sponsors’’) and Gold Corporation will dealers, and investors of information I. Introduction also serve as custodian of the Trust’s with respect to quotations for and gold bullion (in such capacity, transactions in securities. The last-sale On December 11, 2017, NYSE Arca, ‘‘Custodian’’).10 Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed price for the Shares will be disseminated over the Consolidated with the Securities and Exchange issued by such trust in a specified aggregate Tape. There is a considerable amount of Commission (‘‘Commission’’), pursuant minimum number in return for a deposit of a information about gold and gold to Section 19(b)(1) of the Securities quantity of the underlying commodity; and (c) that, markets available on public websites Exchange Act of 1934 (‘‘Act’’) 1 and Rule when aggregated in the same specified minimum and through professional and 19b–4 thereunder,2 a proposed rule number, may be redeemed at a holder’s request by subscription services. Investors may change to list and trade shares such trust which will deliver to the redeeming holder the quantity of the underlying commodity. obtain gold pricing information on a 24- (‘‘Shares’’) of the Perth Mint Physical See NYSE Arca Equities Rule 8.201(c)(1). hour basis based on the spot price for an Gold ETF Trust (‘‘Trust’’) under NYSE 7 ‘‘Physical Gold’’ is defined as London Bars and ounce of gold from various financial Arca Equities Rule 8.201–E. The all gold products without numismatic value and information service providers.13 having a gold purity of at least 99.5% (including proposed rule change was published for Additionally, the Commission finds comment in the Federal Register on coins, cast bars and minted bars). 8 that the proposed rule change is December 28, 2017.3 The Commission According to the Registration Statement, the Trust does not trade in gold futures contracts on consistent with Section 6(b)(5) of the has not received any comments on the COMEX or on any other futures exchange. Because Exchange Act,14 which requires, among proposed rule change. This order the Trust does not trade in gold futures contracts other things, that the Exchange’s rules approves the proposed rule change. on any futures exchange, the Trust is not regulated by the CFTC under the Commodity Exchange Act be designed to prevent fraudulent and II. The Description of the Proposed as a ‘‘commodity pool,’’ and is not operated by a manipulative acts and practices, Rule Change 4 CFTC-regulated commodity pool operator. Investors promote just and equitable principles of in the Trust do not receive the regulatory trade, to remove impediments to and The Exchange proposes to list and protections afforded to investors in regulated commodity pools, nor may COMEX or any futures trade the Shares under NYSE Arca 11 In approving this proposed rule change, the exchange enforce its rules with respect to the Equities Rule 8.201–E,5 which governs Commission has considered the proposed rule’s Trust’s activities. In addition, investors in the Trust impact on efficiency, competition, and capital the listing and trading of Commodity- do not benefit from the protections afforded to 6 formation. See 15 U.S.C. 78c(f). Based Trust Shares on the Exchange. investors in gold futures contracts on regulated 12 15 U.S.C. 78k–1(a)(1)(C)(iii). futures exchanges. 13 The Exchange states that Reuters and 1 15 U.S.C. 78s(b)(1). 9 Gold Corporation, doing business as the Perth Bloomberg, for example, provide at no charge on 2 17 CFR 240.19b–4. Mint, is a Western Australian Government owned their websites delayed information regarding the 3 See Securities Exchange Act Release No. 82372 statutory body corporate established by the Gold spot price of Gold and last sale prices of gold (Dec. 21, 2017), 82 FR 61601 (‘‘Notice’’). Corporation Act 1987 (Western Australia). ETC is futures, as well as information about news and 4 A more detailed description of the Trust and the an Oklahoma limited liability company majority developments in the gold market. Reuters and Shares, as well as investment risks, Share creation owned by Cottonwood ETF Holdings LLC. ETC is Bloomberg also offer a professional service to procedures for authorized participants, Share a registered investment adviser and provides subscribers for a fee that provides information on redemption procedures for authorized participants investment advisory services to domestic and gold prices directly from market participants. and certain beneficial owners, NAV calculation, international equity and fixed income ETFs. Complete real-time data for gold futures and availability of information and fees, among other 10 As Custodian of the Trust’s gold bullion, Gold options prices traded on the COMEX are available things, is included in the Registration Statement, Corporation will be responsible for the safekeeping by subscription from Reuters and Bloomberg. There infra note 5. of the Trust’s gold and supplying inventory are a variety of other public websites providing 5 On August 30, 2017, the Trust submitted to the information to the Trustee and the Sponsors. The information on gold, ranging from those Commission its draft registration statement on Form Custodian will also be responsible for facilitating specializing in precious metals to sites maintained S–1 (‘‘Registration Statement’’) under the Securities the transfer of gold in and out of the Trust and by major newspapers. In addition, the LBMA Gold Act of 1933 (15 U.S.C. 77a). facilitating the shipment of Physical Gold to Price is publicly available at no charge at 6 A ‘‘Commodity-Based Trust Share’’ is a security Delivery any beneficial owner (who is not an www.lbma.org.uk. See Notice, supra note 3, 82 FR (a) that is issued by a trust that holds a specified authorized participant) who wishes to surrender at 61605. commodity deposited with the trust; (b) that is Shares in exchange for Physical Gold. 14 15 U.S.C. 78f(b)(5).

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perfect the mechanism of a free and information on their website: (1) The Arca Equities Rule 8.201–E(g), which open market and a national market mid-point of the bid-ask price as of the are designed to allow the Exchange to system, and, in general, to protect close of trading (‘‘Bid/Ask Price’’), and ensure that they do not use their investors and the public interest. The a calculation of the premium or positions to violate the requirements of Commission notes that the Exchange discount of such price against such Exchange rules or applicable federal has surveillance-sharing agreements NAV; (2) data in chart format displaying securities laws.25 with significant, regulated markets for the frequency distribution of discounts In support of this proposal, the trading futures on gold. Specifically, and premiums of the Bid/Ask Price Exchange has made the following according to the Exchange: (1) The most against the NAV, within appropriate additional representations: significant gold futures exchanges in the ranges, for each of the four previous (1) The Shares will be listed and U.S. is COMEX, a subsidiary of New calendar quarters; (3) the Trust’s traded on the Exchange pursuant to the York Mercantile Exchange, Inc., and a prospectus, as well as the two most initial and continued listing criteria in subsidiary of the Chicago Mercantile recent reports to stockholders; and (4) NYSE Arca Equities Rule 8.201–E.26 Exchange Group (‘‘CME Group’’); (2) ICE the last-sale price of the Shares as (2) The Exchange has appropriate Futures US (‘‘ICE’’) also lists gold traded in the U.S. market.21 In addition, rules to facilitate transactions in the futures; 15 and (3) the CME Group and information regarding market price and Shares during all trading sessions.27 ICE are members of the ISG,16 which trading volume of the Shares will be (3) The Exchange deems the Shares to will allow NYSE Arca to obtain continually available on a real-time be equity securities.28 surveillance information from COMEX basis throughout the day on brokers’ (4) The Exchange also has a general and ICE. Both COMEX and ICE are computer screens and other electronic policy prohibiting the distribution of regulated by the U.S. Commodity services. Information regarding the material, non-public information by its Futures Trading Commission previous day’s closing price and trading employees.29 (‘‘CFTC’’).17 The gold futures market is volume information for the Shares will (5) Trading in the Shares will be of significant size and liquidity.18 be published daily in the financial subject to the existing trading The Commission believes that the section of newspapers. surveillances administered by the proposed rule change is reasonably The Commission also believes that the Exchange, as well as cross-market designed to promote fair disclosure of proposal is reasonably designed to surveillances administered by FINRA on information that may be necessary to prevent trading when a reasonable behalf of the Exchange, which are price the Shares appropriately. NYSE degree of transparency cannot be designed to detect violations of Arca Equities Rule 8.201(e)(2)(v) assured. With respect to trading halts, Exchange rules and applicable federal requires that an intraday indicative the Exchange may consider all relevant securities laws, and that these value (‘‘IIV,’’ which is referred to in the factors in exercising its discretion to procedures are adequate to properly rule as the ‘‘Indicative Trust Value’’) be halt or suspend trading in the Shares. monitor Exchange trading of the Shares calculated and disseminated at least Trading on the Exchange in the Shares in all trading sessions and to deter and every 15 seconds. The IIV will be may be halted because of market detect violations of Exchange rules and calculated based on the amount of gold conditions or for reasons that, in the federal securities laws applicable to held by the Trust and a price of gold view of the Exchange, make trading in trading on the Exchange.30 derived from updated bids and offers the Shares inadvisable. These may (6) The Exchange or FINRA, on behalf indicative of the spot price of gold. The include: (1) The extent to which of the Exchange, or both, will Exchange states that the IIV relating to conditions in the underlying gold communicate as needed regarding the Shares will be widely disseminated market have caused disruptions and/or trading in the Shares with other markets by one or more major market data lack of trading, or (2) whether other and other entities that are members of vendors at least every 15 seconds during unusual conditions or circumstances the ISG, and the Exchange or FINRA, on the Core Trading Session.19 The NAV of detrimental to the maintenance of a fair behalf of the Exchange, or both, may the Trust will be published by the and orderly market are present. In obtain trading information regarding Sponsor on each day that the NYSE addition, trading in Shares will be trading in the Shares from such markets Arca is open for regular trading and will subject to trading halts caused by and other entities. In addition, the be posted on the Trust’s website.20 The extraordinary market volatility pursuant Trust also will publish the following to the Exchange’s ‘‘circuit breaker’’ 25 Commentary .04 of NYSE Arca Equities Rule rule.22 The Exchange will halt trading in 6.3 requires that an ETP Holder acting as a 15 See Notice, supra note 3, 82 FR at 61603. registered market maker in the Shares, and its the Shares if the NAV of the Trust is not affiliates, establish, maintain and enforce written 16 See id. 23 17 calculated or disseminated daily. The policies and procedures reasonably designed to See https://www.theice.com/futures-us/ prevent the misuse of any material nonpublic regulation (‘‘ICE Futures U.S. is a Designated Exchange may halt trading during the information with respect to such products, any Contract Market pursuant to the Commodity day in which an interruption occurs to components of the related products, any physical Exchange Act and regulated by the CFTC.’’); the dissemination of the IIV; if the asset or commodity underlying the product, Securities Exchange Act Release No. 68440 interruption to the dissemination of the applicable currencies, underlying indexes, related (December 14, 2012), 78 FR 75468, 75469 (December 20, 2012) (SR–NYSEArca–2012–28) IIV persists past the trading day in futures or options on futures, and any related (COMEX is regulated by the CFTC). which it occurs, the Exchange will halt derivative instruments. 26 18 The Commission further notes that it has trading no later than the beginning of See id. approved the listing and trading of other 27 See id. the trading day following the 28 See id. The Commission notes that, as a result, Commodity-Based Trust Shares overlying gold. See, 24 e.g., Securities Exchange Act Release No. 81918 interruption. trading of the Shares will be subject to the (October 23, 2017), 82 FR 49884 (October 27, 2017) Additionally, the Commission notes Exchange’s existing rules governing the trading of (SR–NYSEArca–2017–98); Securities Exchange Act that market makers in the Shares will be equity securities. Release No. 71378 (January 23, 2014), 79 FR 71378 subject to the requirements of NYSE 29 See id. at 61607. (January 29, 2014) (SR–NYSEArca–2013–137); and 30 See id. at 61606. FINRA conducts cross-market Securities Exchange Act Release No. 70195 (August surveillances on behalf of the Exchange pursuant to 21 14, 2013, 2013), 78 FR 51239 (August 20, 2013) See id. at 61606. a regulatory services agreement. The Exchange is (SR–NYSEArca–2013–61). 22 See id. responsible for FINRA’s performance under this 19 See Notice, supra note 3, 82 FR at 61607. 23 See id. regulatory services agreement. See id. at 61606, 20 See id. 24 See id. n.39.

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Exchange may obtain information For the foregoing reasons, the review may be obtained from the regarding trading in the Shares from Commission finds that the proposed Agency Clearance Officer. markets and other entities that are rule change is consistent with Sections SUPPLEMENTARY INFORMATION: Lenders members of ISG or with which the 6(b)(5) and 11A(a)(1)(C)(iii) of the Act 35 requesting SBA to purchase the Exchange has in place a comprehensive and the rules and regulations guaranty portion of a loan are required surveillance sharing agreement.31 thereunder applicable to a national to supply the Agency with a certified (7) Prior to the commencement of securities exchange. transcript of the loan account. This form trading, the Exchange will inform its IV. Conclusion is uniform and convenient means for ETP Holders in an Information Bulletin lenders to report and certify loan of the special characteristics and risks It is therefore ordered, pursuant to accounts to purchase by SBA. The associated with trading the Shares. Section 19(b)(2) of the Exchange Act,36 Agency uses the information to Specifically, the Information Bulletin that the proposed rule change (SR– determine date of loan default and will discuss the following: (1) The NYSEArca–2017–140), be, and it hereby whether Lender disbursed and serviced procedures for purchases and is, approved. the loan according to Loan Guaranty redemptions of Shares in Baskets For the Commission, by the Division of agreement. (including noting that Shares are not Trading and Markets, pursuant to delegated Solicitation of Public Comments: individually redeemable); (2) NYSE authority.37 Comments may be submitted on (a) Arca Rule 9.2–E(a), which imposes a Robert W. Errett, whether the collection of information is duty of due diligence on its ETP Holders Deputy Secretary. necessary for the agency to properly to learn the essential facts relating to [FR Doc. 2018–01953 Filed 1–31–18; 8:45 am] perform its functions; (b) whether the every customer prior to trading the BILLING CODE 8011–01–P burden estimates are accurate; (c) Shares; (3) how information regarding whether there are ways to minimize the the IIV is disseminated; (4) the burden, including through the use of requirement that ETP Holders deliver a automated techniques or other forms of SMALL BUSINESS ADMINISTRATION prospectus to investors purchasing information technology; and (d) whether newly issued Shares prior to or Reporting and Recordkeeping there are ways to enhance the quality, concurrently with the confirmation of a Requirements under OMB Review utility, and clarity of the information. transaction; (5) the possibility that Summary of Information Collections: trading spreads and the resulting AGENCY: Small Business Administration. (1) Title: Lender’s Transcript of premium or discount on the Shares may ACTION: 30-Day notice. Account. widen as a result of reduced liquidity of Description of Respondents: SBA gold trading during the Core and Late SUMMARY: The Small Business Lenders. Trading Sessions after the close of the Administration (SBA) is publishing this Form Number: SBA Form 1149. major world gold markets; and (6) notice to comply with requirements of Estimated Annual Respondents: trading information.32 the Paperwork Reduction Act (PRA), 1,000. (8) All statements and representations which requires agencies to submit Estimated Annual Responses: 15,000. made in this filing regarding (a) the proposed reporting and recordkeeping Estimated Annual Hour Burden: description of the portfolio, (b) requirements to OMB for review and 30,000. limitations on portfolio holdings or approval, and to publish a notice in the Curtis B. Rich, reference assets, or (c) the applicability Federal Register notifying the public of Exchange listing rules specified in that the agency has made such a Management Analyst. this rule filing shall constitute submission. This notice also allows an [FR Doc. 2018–01994 Filed 1–31–18; 8:45 am] continued listing requirements for additional 30 days for public comments. BILLING CODE 8025–01–P listing the Shares of the Trust on the DATES: Submit comments on or before 33 Exchange. March 5, 2018. (9) The issuer has represented to the SMALL BUSINESS ADMINISTRATION ADDRESSES: Exchange that it will advise the Comments should refer to Reporting and Recordkeeping Exchange of any failure by the Trust to the information collection by name and/ Requirements Under OMB Review comply with the continued listing or OMB Control Number and should be sent to: Agency Clearance Officer, Curtis requirements, and, pursuant to its AGENCY: Rich, Small Business Administration, Small Business Administration. obligations under Section 19(g)(1) of the ACTION: 30-Day notice. Act, the Exchange will monitor for 409 3rd Street, SW, 5th Floor, Washington, DC 20416; and SBA Desk compliance with the continued listing SUMMARY: The Small Business Officer, Office of Information and requirements. If the Trust is not in Administration (SBA) is publishing this Regulatory Affairs, Office of compliance with the applicable listing notice to comply with requirements of Management and Budget, New requirements, the Exchange will the Paperwork Reduction Act Executive Office Building, Washington, commence delisting procedures under (PRA),which requires agencies to submit DC 20503. NYSE Arca Rule 5.5(m).34 proposed reporting and recordkeeping This approval order is based on all of FOR FURTHER INFORMATION CONTACT: requirements to OMB for review and the Exchange’s representations— Curtis Rich, Agency Clearance Officer, approval, and to publish a notice in the including those set forth above and in (202) 205–7030 [email protected]. Federal Register notifying the public the Notice—and the Exchange’s Copies: A copy of the Form OMB 83– that the agency has made such a description of the Trust. 1, supporting statement, and other submission. This notice also allows an documents submitted to OMB for additional 30 days for public comments. 31 See id. at 61606. DATES: Submit comments on or before 32 35 See id. at 61607. 15 U.S.C. 78f(b)(5) and 15 U.S.C. 78k– March 5, 2018. 33 See id. See also NYSE Arca Rule 8.201– 1(a)(1)(C)(iii), respectively. E(e)(2)(vii). 36 15 U.S.C. 78s(b)(2). ADDRESSES: Comments should refer to 34 See Notice, supra note 3, at 61607. 37 17 CFR 200.30–3(a)(12). the information collection by name and/

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or OMB Control Number and should be and disaster loan program, and 8(a) and other liquidation proceedings sent to: Agency Clearance Officer, Curtis Business Development program, and the including litigation by the Agency and/ Rich, Small Business Administration, Women-Owned Small Business or the Department of Justice. 409 3rd Street SW, 5th Floor, program. Solicitation of Public Comments: Washington, DC 20416; and SBA Desk Form Numbers: SBA Forms 413(7a), Comments may be submitted on (a) Officer, Office of Information and 413(D), 413(8(a)) and 413(WOSB). whether the collection of information is Regulatory Affairs, Office of Estimated Annual Respondents: necessary for the agency to properly Management and Budget, New 44,588. perform its functions; (b) whether the Executive Office Building, Washington, Estimated Annual Responses: 44,588. burden estimates are accurate; (c) DC 20503. Estimated Annual Hour Burden: whether there are ways to minimize the FOR FURTHER INFORMATION CONTACT: 66,882. burden, including through the use of Curtis Rich, Agency Clearance Officer, Curtis B. Rich, automated techniques or other forms of information technology; and (d) whether (202) 205–7030 [email protected]. Management Analyst. Copies: A copy of the Form OMB 83– there are ways to enhance the quality, [FR Doc. 2018–01995 Filed 1–31–18; 8:45 am] utility, and clarity of the information. 1, supporting statement, and other BILLING CODE 8025–01–P documents submitted to OMB for Summary of Information Collections: review may be obtained from the (1) Title: Financial Statement of Debt. Agency Clearance Officer. Description of Respondents: SBA SMALL BUSINESS ADMINISTRATION Lenders. SUPPLEMENTARY INFORMATION: For Form Number: SBA Form 770. Reporting and Recordkeeping financial assistance programs Estimated Annual Respondents: Requirements Under OMB Review authorized by section 7(a) and (b) of the 5,000. Small Business Act and Title V of the AGENCY: Small Business Administration. Estimated Annual Responses: 5,000. Small Business Investment Act of 1958, ACTION: 30-day notice. Estimated Annual Hour Burden: SBA regulations require any loan 5,000. guarantor and individual owners of the SUMMARY: The Small Business Curtis B. Rich, small business applicant to submit a Administration (SBA) is publishing this personal financial statement to provide notice to comply with requirements of Management Analyst. information on their assets and the Paperwork Reduction Act (PRA), [FR Doc. 2018–01991 Filed 1–31–18; 8:45 am] liabilities. See, 13 CFR 120.191 and 13 which requires agencies to submit BILLING CODE 8025–01–P CFR 123.6. The information is necessary proposed reporting and recordkeeping for the Agency, the participating lender requirements to OMB for review and or CDC to make informed decisions approval, and to publish a notice in the SOCIAL SECURITY ADMINISTRATION concerning the applicant’s repayment Federal Register notifying the public [Docket No. SSA 2017–0037] abilities or creditworthiness. that the agency has made such a For the 8(a) Business Development submission. This notice also allows an Privacy Act of 1974; Matching Program (BD), Small Disadvantaged Business additional 30 days for public comments. AGENCY: Social Security Administration (SDB), and Women-Owned Small DATES: Submit comments on or before (SSA). Business (WOSB) programs the March 5, 2018. information is necessary for SBA to ACTION: Notice of a new matching ADDRESSES: Comments should refer to determine if the applicant or participant program. the information collection by name and/ meets the economic disadvantage or OMB Control Number and should be requirements to participate in these SUMMARY: In accordance with the sent to: Agency Clearance Officer, Curtis programs. SBA regulations at 13 CFR provisions of the Privacy Act, as Rich, Small Business Administration, 124.104, 124.112, 124.1002, and 13 CFR amended, this notice announces a new 409 3rd Street SW, 5th Floor, 127.203 require, among other things, matching program with Department of Washington, DC 20416; and SBA Desk that applicants and participants submit Veterans Affairs (VA), Veterans Benefits Officer, Office of Information and financial information to facilitate this Administration (VBA). Regulatory Affairs, Office of determination. This computer matching agreement Management and Budget, New sets forth the terms, conditions, and Solicitation of Public Comments Executive Office Building, Washington, safeguards under which VA/VBA will Comments may be submitted on (a) DC 20503. provide SSA with compensation and whether the collection of information is FOR FURTHER INFORMATION CONTACT: pension payment data. This disclosure necessary for the agency to properly Curtis Rich, Agency Clearance Officer, will provide SSA with information perform its functions; (b) whether the (202) 205–7030 [email protected]. necessary to verify an individual’s self- burden estimates are accurate; (c) Copies: A copy of the Form OMB 83– certification of eligibility for the whether there are ways to minimize the 1, supporting statement, and other Medicare Prescription Drug (Medicare burden, including through the use of documents submitted to OMB for Part D) subsidy (Extra Help). It will also automated techniques or other forms of review may be obtained from the enable SSA to identify individuals who information technology; and (d) whether Agency Clearance Officer. may qualify for Extra Help as part of the there are ways to enhance the quality, SUPPLEMENTARY INFORMATION: The agency’s Medicare outreach efforts. utility, and clarity of the information. objective of the debt collection activities DATES: The deadline to submit is to obtain immediate repayment or comments on the proposed matching Summary of Information Collections arrive at a satisfactory arrangement for program is 30 days from the date of (1) Title: Personal Financial future repayment of debts owed to the publication in the Federal Register. The Statement. Government. SBA uses the financial matching program will be applicable on Description of Respondents: information provided by the debtor on October 2, 2017, or once a minimum of Applicants and/or Participants in SBA’s Form 770 in making a determination 30 days after publication of this notice 7(a) loan program, 504 loan program, regarding the compromise of such debts has elapsed, whichever is later. The

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matching program will be in effect for redetermines the eligibility and subsidy extension of an OMB-approved a period of 18 months. amounts for these individuals, information collection, a new ADDRESSES: Interested parties may thereafter. Also, section 1144 of the Act information collection, and revisions of comment on this notice by either requires SSA to conduct outreach efforts OMB-approved information collections. telefaxing to (410) 966–0869, writing to for MSP and subsidized Medicare SSA is soliciting comments on the Mary Ann Zimmerman, Acting prescription drug coverage. accuracy of the agency’s burden Executive Director, Office of Privacy CATEGORIES OF INDIVIDUALS: estimate; the need for the information; and Disclosure, Office of the General its practical utility; ways to enhance its Counsel, Social Security The individuals whose information is Administration, 617 Altmeyer Building, involved in this matching program are: quality, utility, and clarity; and ways to Medicare beneficiaries who are 6401 Security Boulevard, Baltimore, MD minimize burden on respondents, potentially eligible for Extra Help with 21235–6401, or emailing including the use of automated their Medicare prescription drug plan [email protected]. All collection techniques or other forms of costs. comments received will be available for information technology. Mail, email, or public inspection by contacting Ms. CATEGORIES OF RECORDS: fax your comments and Zimmerman at this street address. VA/VBA will furnish SSA with an recommendations on the information FOR FURTHER INFORMATION CONTACT: electronic file containing compensation collection(s) to the OMB Desk Officer Interested parties may submit general and pension payment data monthly. The and SSA Reports Clearance Officer at questions about the matching program actual matching will take place the following addresses or fax numbers. to Mary Ann Zimmerman, Acting approximately the first week of every (OMB), Office of Management and Executive Director, Office of Privacy month. Budget, Attn: Desk Officer for SSA, SSA will conduct the match using the and Disclosure, Office of the General Fax: 202–395–6974, Email address: Social Security number, name, date of Counsel, by any of the means shown [email protected] above. birth, and VA/VBA claim number on both the file and the Medicare Database (SSA), Social Security Administration, Mary Ann Zimmerman, (MDB). SSA will match VA/VBA’s data OLCA, Attn: Reports Clearance Acting Executive Director, Office of Privacy with data in SSA’s MDB system of Director, 3100 West High Rise, 6401 and Disclosure, Office of the General Counsel. records, 60–0321 to verify an Security Blvd., Baltimore, MD 21235, Participating Agencies: individual’s self-certification of Fax: 410–966–2830, Email address: SSA and VA/VBA. eligibility for Extra Help. [email protected] SYSTEM(S) OF RECORDS: Or you may submit your comments AUTHORITY FOR CONDUCTING THE MATCHING PROGRAM: VA/VBA will provide SSA with online through www.regulations.gov, Legal authorities for SSA to conduct electronic files containing compensation referencing Docket ID Number [SSA– this computer matching are sections and pension payment data from its SOR 2018–0002]. 1860D–14(a)(3), 1144(a)(1) and (b)(1) of entitled ‘‘Compensation, Pension, I. The information collections below the Social Security Act (Act) (42 U.S.C. Education, and Vocational are pending at SSA. SSA will submit 1395w–114(a)(3), 1320b–14(a)(1) and Rehabilitation and Employment them to OMB within 60 days from the (b)(1). Records—VA’’ (58VA21/22/28), date of this notice. To be sure we republished with updated name at 74 consider your comments, we must PURPOSE(S): FR 14865 (April 1, 2009) and last The purpose of this matching program receive them no later than April 2, 2018. amended at 77 FR 42593 (July 19, 2012). Individuals can obtain copies of the is to set forth the conditions under SSA will match the VA/VBA data collection instruments by writing to the which VA/VBA will provide SSA with with SSA SOR 60–0321, SSA’s MDB compensation and pension payment file, last published at 71 FR 42159 (July above email address. data. This disclosure will provide SSA 25, 2006) and amended at 72 FR 6973 1. Request for Reconsideration— with information necessary to verify an (December 10, 2007). Disability Cessation—20 CFR 404.909, individual’s self-certification of The systems of records involved in 416.1409—0960–0349. When SSA eligibility for the Medicare Prescription this matching program have routine determines that claimants’ disabilities Drug (Medicare Part D) subsidy (Extra uses permitting the disclosures needed medically improved; ceased; or are no Help). It will also enable SSA to identify to conduct this match. longer sufficiently disabling, these individuals who may qualify for Extra [FR Doc. 2018–01967 Filed 1–31–18; 8:45 am] claimants may ask SSA to reconsider Help as part of the agency’s Medicare BILLING CODE 4191–02–P that determination. SSA uses Form outreach efforts. SSA–789–U4 to arrange for a hearing or SSA will use VA/VBA’s data to to prepare a decision based on the determine an individual’s eligibility for SOCIAL SECURITY ADMINISTRATION evidence of record. Specifically, Extra Help and to identify such [Docket No: SSA–2018–0002] claimants or their representatives use individuals to the state agencies that Form SSA–789–U4 to: (1) Ask SSA to administer the Medicare Savings Agency Information Collection reconsider a determination; (2) indicate Program (MSP), unless those Activities: Proposed Request and if they wish to appear at a disability individuals do not consent to share their Comment Request information with the state agencies. hearing; (3) submit any additional Under section 1860D–14 of the Act, The Social Security Administration information or evidence for use in the SSA is required to determine the (SSA) publishes a list of information reconsidered determination; and (4) eligibility of applicants who self-certify collection packages requiring clearance indicate if they will need an interpreter their income, resources, and family size by the Office of Management and for the hearing. The respondents are for Extra Help. SSA is responsible for Budget (OMB) in compliance with disability claimants for Social Security verifying, on a pre-enrollment basis, an Public Law 104–13, the Paperwork benefits or Supplemental Security applicant’s income and resource Reduction Act of 1995, effective October Income (SSI) payments, or their allegations. SSA periodically 1, 1995. This notice includes an representatives who wish to appeal an

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unfavorable disability cessation Type of Request: Revision of an OMB- determination. approved information collection.

Average Estimated Number of Frequency of burden per total annual Modality of completion respondents response response burden (minutes) (hours)

SSA–789–U4 ...... 30,000 1 13 6,500

2. Waiver of Right to Appear— right to appear at a disability hearing. disability claimants for Social Security Disability Hearing—20 CFR 404.913– The disability hearing officer uses the benefits or SSI payments, or their 404.914, 404.916(b)(5), 416.1413– signed form as a basis for not holding representatives, who wish to waive their 416.1414, 416.1416(b)(5)—0960–0534. a hearing, and for preparing a written right to appear at a disability hearing. Claimants for Social Security disability decision on the claimant’s request for Type of Request: Revision of an OMB- payments or their representatives can disability payments based solely on the approved information collection. use Form SSA–773–U4 to waive their evidence of record. The respondents are

Average Estimated Number of Frequency burden per total annual Modality of completion respondents of response response burden (minutes) (hours)

SSA–773–U4 ...... 200 1 3 10

3. Social Security Number addition, the employee’s name and SSN a cost-free method for employers to Verification Services—20 CFR 401.45— must match SSA’s records for SSA to verify employee information via the 0960–0660. Internal Revenue Service post earnings to the employee’s earnings internet. The respondents are employers regulations require employers to record, which SSA maintains. SSA who need to verify SSN data using provide wage and tax data to SSA using offers the Social Security Number SSA’s records. Form W–2, or its electronic equivalent. Verification Service (SSNVS), which Type of Request: Revision of an OMB- As part of this process, the employer allows employers to verify the reported approved information collection. must furnish the employee’s name and names and SSNs of their employees Social Security number (SSN). In match those in SSA’s records. SSNVS is

Average Estimated Number of Frequency Number of burden per total annual Modality of completion respondents of response responses response burden (minutes) (hours)

SSNVS ...... 41,387 60 2,483,220 5 206,935

II. SSA submitted the information by writing to OR.Reports.Clearance@ sign Form SSA–4321, and confirm, collections below to OMB for clearance. ssa.gov. among other things, that they will not Your comments regarding these 1. Statement of Interpreter—0960– knowingly give false information; they information collections would be most NEW. SSA and the Disability will act as an interpreter and witness; useful if OMB and SSA receive them 30 Determination Services (DDS) will use and they will accurately interpret the days from the date of this publication. Form SSA–4321, Statement of interview to the best of their ability. To be sure we consider your comments, Interpreter, when a person requiring an Section 205(a) of the Social Security Act we must receive them no later than interpreter prefers to provide their own (Act), as amended (42 U.S.C. 405(a)) interpreter during an interview or March 5, 2018. Individuals can obtain authorizes SSA collect this information. conversation between the person copies of the OMB clearance packages requiring an interpreter and SSA or Type of Request: A New Information DDS. SSA will require the interpreter Collection Request.

Average Estimated Number of Frequency of burden per total annual Modality of completion respondents response response burden (minutes) (hours)

SSA–4321 ...... 5,170,399 1 5 430,867

2. Application for Mother’s or Father’s benefits to the widow or widower of an information on Form SSA–5–BK to Insurance Benefits—20 CFR 404.339– insured individual if the surviving determine an individual’s eligibility for 404.342, 20 CFR 404.601–404.603— spouse is caring for the deceased mother’s or father’s insurance benefits. 0960–0003. Section 202(g) of the Act worker’s child (who is entitled to Social The respondents are individuals caring provides for the payment of monthly Security benefits). SSA uses the for a child of the deceased worker who

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is applying for mother’s or father’s Survivors, and Disability Insurance Type of Request: Revision of an OMB- insurance benefits under the Old Age, program. approved information collection.

Average Estimated Number of Frequency of burden per total annual Modality of completion respondents response response burden (minutes) (hours)

SSA–5–F6 (paper) ...... 6,542 1 15 1,636 Modernized Claims System ...... 42,175 1 15 10,544

Totals ...... 48,717 ...... 12,180

3. Statement of Living Arrangements, maintenance in the form of food and and recipients receive. The respondents In-Kind Support, and Maintenance—20 shelter provided by other people. SSA are individuals who apply for SSI CFR 416.1130–416.1148—0960–0174. uses Form SSA–8006–F4 to determine if payments, or who complete an SSI SSA determines SSI payment amounts in-kind support and maintenance exists eligibility redetermination. based on applicants’ and recipients’ for SSI applicants and recipients. This Type of Request: Revision of an OMB- needs. We measure individuals’ needs, information also assists SSA in approved information collection. in part, by the amount of income they determining the income value of in-kind receive, including in-kind support and support and maintenance SSI applicants

Average Estimated Number of Frequency of burden per total annual Modality of completion respondents response response burden (minutes) (hours)

SSA–8006–F4 ...... 173,380 1 7 20,228

4. Statement of Funds You Provided on the validity of the bona fide status of SSA collects this information at the to Another and Statement of Funds You the loan. time of initial application for SSI, or at Received—20 CFR 416.1103(f)—0960– For SSI purposes, we consider a loan any point when an individual alleges 0481. SSA uses Forms SSA–2854 bona fide if it meets these requirements: being party to an informal loan while (Statement of Funds You Provided to • Must be between a borrower and receiving SSI. SSA collects information Another) and SSA–2855 (Statement of lender with the understanding that the on the informal loan through both Funds You Received) to gather borrower has an obligation to repay the interviews and mailed forms. The information to verify if a loan is bona money; • agency’s field personnel conduct the fide for SSI recipients. The SSA–2854 Must be in effect at the time the interviews and mail the form(s) for asks the lender for details on the cash goes to the borrower, that is, the completion, as needed. The respondents transaction, and Form SSA–2855 asks agreement cannot come after the cash is are SSI recipients and applicants, and the borrower the same basic questions paid; and individuals who lend money to them. independently. Agency personnel then • Must be enforceable under State compare the two statements; gather law, often there are additional Type of Request: Revision of an OMB- evidence if needed; and make a decision requirements from the State. approved information collection.

Average Estimated Number of Frequency of burden per total annual Modality of completion respondents response response burden (minutes) (hours)

SSA–2854 ...... 20,000 1 10 3,333 SSA–2855 ...... 20,000 1 10 3,333

Totals ...... 40,000 ...... 6,666

5. Filing Claims Under the Federal claims filed under the Federal Tort and determine whether to make an Tort Claims Act—20 CFR 429.101– Claims Act for damages against the award, compromise, or settlement under 429.110—0960–0667. The Federal Tort United States, loss of property, personal the Federal Tort Claims Act. The Claims Act is the legal mechanism for injury, or death resulting from an SSA respondents are individuals or entities compensating persons injured by employee’s wrongful act or omission. making a claim under the Federal Tort negligent or wrongful acts that occur The regulation sections cleared under Claims Act. during the performance of official duties this information collection request Type of Request: Extension of an by Federal employees. In accordance require claimants to provide with the law, SSA accepts monetary information SSA can use to investigate OMB-approved information collection.

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Average Estimated Number of Frequency of burden per total annual Modality of completion respondents response response burden (minutes) (hours)

429.102; 429.103 1 ...... 1 ...... 1 429.104(a) ...... 11 1 5 1 429.104(b) ...... 43 1 5 4 429.104(c) ...... 1 1 5 0 429.106(b) ...... 8 1 10 1

Totals ...... 64 ...... 7 1 The 1 hour represents a placeholder burden. We are not reporting a burden for this collection because respondents complete OMB-approved Form SF–95.

6. Application for Extra Help with subsidies for eligible Medicare subsidy decision. The respondents are Medicare Prescription Drug Plan beneficiaries. SSA uses Form SSA–1020 Medicare beneficiaries applying for the Costs—20 CFR 418.3101—0960–0696. or the internet i1020, the Application Part D low-income subsidy. The Medicare Modernization Act of for Extra Help with Medicare Type of Request: Revision of an OMB- 2003 mandated the creation of the Prescription Drug Plan Costs, to obtain approved information collection. Medicare Part D prescription drug income and resource information from coverage program and the provision of Medicare beneficiaries, and to make a

Average Estimated Number of Frequency of burden per total annual Modality of completion respondents response response burden (minutes) (hours)

SSA–1020 ...... (paper application form) ...... 531,715 1 30 265,858 i1020 ...... (online application) ...... 346,642 1 25 144,434 Field office interview ...... 108,194 1 30 54,097

Totals ...... 986,551 ...... 464,389

Dated: January 26, 2018. the rate of productivity growth in 2014 DEPARTMENT OF TRANSPORTATION Naomi R. Sipple, relative to 2013 (1.018). Incorporating Reports Clearance Officer, Social Security the 2015 value with the values from Federal Aviation Administration Administration. 2011–2014 period produces a geometric Public Notice for a Change in Use of [FR Doc. 2018–01947 Filed 1–31–18; 8:45 am] average productivity growth of 0.994 for Aeronautical Property at Los Angeles BILLING CODE 4191–02–P the five-year period 2011–2015, or International Airport, Los Angeles, -0.6% per year. California DATES: Applicability Date: January 29, SURFACE TRANSPORTATION BOARD 2018. AGENCY: Federal Aviation [Docket No. EP 290 (Sub-No. 4)] Administration (FAA), DOT. FOR FURTHER INFORMATION CONTACT: ACTION: Request for public comment. Railroad Cost Recovery Procedures— Pedro Ramirez, (202) 245–0333. Federal Productivity Adjustment Information Relay Service (FIRS) for the SUMMARY: The Federal Aviation hearing impaired, (800) 877–8339. AGENCY: Surface Transportation Board. Administration (FAA) is requesting public comment on Los Angeles World ACTION: Adoption of Railroad Cost SUPPLEMENTARY INFORMATION: Airports’ (LAWA) request to change Recovery Procedures Productivity Additional information is contained in approximately 5 acres of airport Adjustment. the Board’s decision, which is available property from aeronautical use to non- on the Board’s website, http:// SUMMARY: In a decision served on aeronautical use. www.stb.gov. Copies of the decision may January 29, 2018, the Surface The property is located at the be purchased by contacting the Office of Transportation Board adopted as final northeast intersection of Westchester Public Assistance, Governmental its calculation of the productivity Parkway and Falmouth Avenue. The adjustment, with the linking factor for Affairs, and Compliance at (202) 245– property is currently vacant land with the year 2015, proposed in its 0238. no structures onsite. LAWA requests to September 29, 2017 decision in the Decided: January 25, 2018. develop the land with the Argo Drain same docket. See R.R. Cost Recovery By the Board, Board Members Begeman Sub-Basin Facility. The Sub-Basin Procedures—Productivity Adjustment, and Miller. Facility is primarily an underground EP 290 (Sub-No. 4), slip op. at 4 (STB Jeffrey Herzig, storm water treatment facility designed served Sept. 29, 2017). The productivity to potentially allow open space uses on Clearance Clerk. change for 2015, based on changes in the surface. The Sub-Basin Facility also input and output levels from 2014, is [FR Doc. 2018–01966 Filed 1–31–18; 8:45 am] includes two above-ground elements: A 0.939, which is a decrease of 7.8% from BILLING CODE 4915–01–P pump facility and blower building.

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Documents reflecting the LAWA’s Issued in Lawndale, California, on January • website: http:// request are available, by appointment 23, 2018. www.regulations.gov. Follow the online only, at the FAA Los Angeles Airports David F. Cushing, instructions for submitting comments. District Office. Manager, Los Angeles Airports District Office, • Fax: 202–493–2251. Western-Pacific Region. • Mail: Docket Operations Facility, DATES: Comments must be received on [FR Doc. 2018–02014 Filed 1–31–18; 8:45 am] U.S. Department of Transportation, 1200 or before March 5, 2018. BILLING CODE 4910–13–P New Jersey Avenue SE, W12–140, ADDRESSES: Documents are available for Washington, DC 20590. review at the FAA Los Angeles Airports • Hand Delivery: 1200 New Jersey District Office, 15000 Aviation DEPARTMENT OF TRANSPORTATION Avenue SE, Room W12–140, Boulevard, Room 3000, Lawndale, CA Washington, DC 20590, between 9 a.m. 90261, 310–725–3608. Written Federal Railroad Administration and 5 p.m., Monday through Friday, comments on LAWA’s request must be [Docket Number FRA–2001–10214] except Federal Holidays. delivered or mailed, 2 copies to: Lemuel Communications received by March del Castillo, 15000 Aviation Boulevard Petition for Waiver of Compliance 19, 2018 will be considered by FRA Room 3000, Lawndale, CA 90261, 310– before final action is taken. Comments Under part 211 of Title 49 of the Code 725–3651. received after that date will be of Federal Regulations (CFR), this considered if practicable. FOR FURTHER INFORMATION CONTACT: provides the public notice that on Anyone can search the electronic Lemuel del Castillo, 15000 Aviation December 22, 2017, the Minnesota form of any written communications Boulevard, Room 3000, Lawndale, CA Northern Railroad (MNN) petitioned the and comments received into any of our 90261, 310–725–3651. Federal Railroad Administration (FRA) dockets by the name of the individual for an extension of a waiver from certain SUPPLEMENTARY INFORMATION: Section submitting the comment (or signing the provisions of the Federal railroad safety 125 of The Wendell H. Ford Aviation document, if submitted on behalf of an regulations contained at 49 CFR part Investment and Reform Act for the 21st association, business, labor union, etc.). 223. FRA assigned the petition Docket Century (AIR–21) requires the FAA to Under 5 U.S.C. 553(c), DOT solicits provide an opportunity for public notice Number FRA–2001–10214. Specifically, the MNN seeks to extend comments from the public to better and comment prior to the ‘‘waiver’’ or its existing waiver from 49 Code of inform its processes. DOT posts these ‘‘modification’’ of a sponsor’s Federal Federal Regulations (CFR) § 223.13, comments, without edit, including any obligation to use certain airport land for regarding the glazing on caboose (MNN personal information the commenter aeronautical purposes. 019. provides, to www.regulations.gov, as The following is a brief overview of The MNN states that the described in the system of records the request: The project site is located circumstances at the time of the original notice (DOT/ALL–14 FDMS), which can within the City of Los Angeles, on grant of waiver have not changed. The be reviewed at https:// LAWA’s property, adjacent to LAX. The caboose is still only used on special www.transportation.gov/privacy. See project site is located on the east and occasions as an office car for officials also https://www.regulations.gov/ west side of Falmouth Avenue, just and private persons for railroad privacyNotice for the privacy notice of north of Westchester Parkway. The business purposes. The territory that it regulations.gov. project site is vacant land with no operates in is primarily rural. Issued in Washington, DC. structures currently onsite. LAWA A copy of the petition, as well as any Robert C. Lauby, requests to develop the land with the written communications concerning the Associate Administrator for Railroad Safety, Argo Drain Sub-Basin Facility (Sub- petition, is available for review online at Chief Safety Officer. Basin Facility) to address airport www.regulations.gov and in person at [FR Doc. 2018–01958 Filed 1–31–18; 8:45 am] environmental compliance needs. The the U.S. Department of Transportation’s BILLING CODE 4910–06–P Sub-Basin Facility is primarily an (DOT) Docket Operations Facility, 1200 underground storm water treatment New Jersey Avenue SE, W12–140, facility designed to potentially allow Washington, DC 20590. The Docket DEPARTMENT OF TRANSPORTATION open space uses on the surface. The Operations Facility is open from 9 a.m. Sub-Basin Facility also includes two to 5 p.m., Monday through Friday, Federal Railroad Administration above-ground elements: a pump facility except Federal Holidays. [Docket Number FRA–2018–0006] and blower building. LAWA’s industrial Interested parties are invited to areas, existing and future capitals participate in these proceedings by Petition for Waiver of Compliance improvement projects will need submitting written views, data, or multiple independent storm water comments. FRA does not anticipate Under part 211 of Title 49 Code of treatment facilities. This project will scheduling a public hearing in Federal Regulations (CFR), this provides avoid the construction of multiple connection with these proceedings since the public notice that on January 5, independent facilities. The Argo-Drain the facts do not appear to warrant a 2018, Northern Plains Railroad (NPR), Sub-Basin will allow LAWA to achieve hearing. If any interested parties desire petitioned the Federal Railroad a campus-wide approach to compliance an opportunity for oral comment and a Administration (FRA) for a waiver of with Low Impact Development public hearing, they should notify FRA, compliance from certain provisions of requirements. It will also assist with the in writing, before the end of the the Federal railroad safety regulations overall compliance strategy for comment period and specify the basis contained at 49 CFR part 229. FRA Industrial General Permit requirements. for their request. assigned the petition Docket Number LAWA and Los Angeles Bureau of All communications concerning these FRA–2018–0006. Sanitation will have a lease agreement proceedings should identify the Specifically, NPR seeks a waiver of in place in order to address the share of appropriate docket number and may be compliance from a portion of 49 CFR financial responsibility for the Sub- submitted by any of the following 229.47, Emergency brake valve, for five Basin Facility. methods: SD60F locomotives (Numbers 5513,

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5517, 5518, 5525, and 5535) that were in writing, before the end of the regulations contained at 49 CFR part purchased from Canadian National comment period and specify the basis 223. FRA assigned the petition Docket Railway (CN). These units do not have for their request. Number FRA–2007–27556. the required emergency brake valve All communications concerning these Specifically, SMS Rail Service (SLRS) installed at the rear exit door. proceedings should identify the is seeking an extension of its waiver of NPR is a regional railroad operating appropriate docket number and may be compliance from 49 CFR 223.11, on a 350-mile network in North Dakota submitted by any of the following Requirements for existing locomotives, and western Minnesota. NPR’s primary methods: for the glazing in one of its locomotives, commodities handled include wheat, • Website: http:// SLRS 412. Locomotive SLRS 412 is a soybeans, corn, aggregates, and www.regulations.gov. Follow the online Baldwin VO–1000, built in 1945, and is miscellaneous industrial products. The instructions for submitting comments. owned by the United Railroad Historical maximum operating speed on the NPR • Fax: 202–493–2251. Society, a non-profit organization. The is 25 miles per hour. NPR has had no • Mail: Docket Operations Facility, locomotive is currently out of service; history of vandalism, two reportable U.S. Department of Transportation, 1200 however, SLRS would like to be able to train accidents since 2013, and an injury New Jersey Avenue SE, W12–140, operate it again in limited service frequency rate of under one percent for Washington, DC 20590. should they be able to facilitate repairs. the last two years. NPR indicates that • Hand Delivery: 1200 New Jersey Locomotive SLRS 412 would be these units will be used in road service Avenue SE, Room W12–140, operated in limited use and exclusively and will be paired together. NPR does Washington, DC 20590, between 9 a.m. within the Pureland Industrial Park in not see this waiver of compliance and 5 p.m., Monday through Friday, Bridgeport, NJ. SLRS represents that adversely affecting safety. except Federal Holidays. there is no history of broken glazing on NPR believes that 49 CFR 229.47 was Communications received by March this railroad, and no overhead bridges or established to provide a crew member a 19, 2018 will be considered by FRA tunnels on the trackage. Maximum means of initiating an emergency stop before final action is taken. Comments operating speed would be 10 miles per when they are unable to give the received after that date will be hour. locomotive operator a visual signal to considered if practicable. A copy of the petition, as well as any stop while making a reverse movement. Anyone can search the electronic written communications concerning the This would only apply to locomotives form of any written communications petition, is available for review online at that do not have an exposed walkway and comments received into any of our www.regulations.gov and in person at on the end of the car body. The five full dockets by the name of the individual the U.S. Department of Transportation’s body locomotives are all equipped with submitting the comment (or signing the (DOT) Docket Operations Facility, 1200 a walkway and corner steps that provide document, if submitted on behalf of an New Jersey Avenue SE, W12–140, a position for crew to direct the association, business, labor union, etc.). Washington, DC 20590. The Docket locomotive engineer while making a Under 5 U.S.C. 553(c), DOT solicits Operations Facility is open from 9 a.m. reverse movement. Because these end comments from the public to better to 5 p.m., Monday through Friday, platforms, which are identical to that of inform its processes. DOT posts these except Federal Holidays. a regular body locomotive, are available comments, without edit, including any Interested parties are invited to and equipped with corner steps, NPR personal information the commenter participate in these proceedings by crews would not place themselves provides, to www.regulations.gov, as submitting written views, data, or inside the locomotive engine described in the system of records comments. FRA does not anticipate compartment to direct a reverse notice (DOT/ALL–14 FDMS), which can scheduling a public hearing in movement, thereby making the be reviewed at https:// connection with these proceedings since application of this emergency brake the facts do not appear to warrant a valve meaningless. Therefore, NPR is www.transportation.gov/privacy. See also https://www.regulations.gov/ hearing. If any interested parties desire requesting a waiver from the an opportunity for oral comment and a requirement that an emergency brake privacyNotice for the privacy notice of regulations.gov. public hearing, they should notify FRA, pipe valve be installed adjacent to the in writing, before the end of the rear door for these five units. Issued in Washington, DC. comment period and specify the basis A copy of the petition, as well as any Robert C. Lauby, for their request. written communications concerning the Associate Administrator for Railroad Safety All communications concerning these petition, is available for review online at Chief Safety Officer. proceedings should identify the www.regulations.gov and in person at [FR Doc. 2018–01962 Filed 1–31–18; 8:45 am] appropriate docket number and may be the U.S. Department of Transportation’s BILLING CODE 4910–06–P submitted by any of the following (DOT) Docket Operations Facility, 1200 methods: New Jersey Avenue SE, W12–140, • Website: http:// Washington, DC 20590. The Docket DEPARTMENT OF TRANSPORTATION www.regulations.gov. Follow the online Operations Facility is open from 9 a.m. instructions for submitting comments. to 5 p.m., Monday through Friday, Federal Railroad Administration • Fax: 202–493–2251. except Federal Holidays. • [Docket Number FRA–2007–27556] Mail: Docket Operations Facility, Interested parties are invited to U.S. Department of Transportation, 1200 participate in these proceedings by Petition for Waiver of Compliance New Jersey Avenue SE, W12–140, submitting written views, data, or Washington, DC 20590. comments. FRA does not anticipate Under part 211 of Title 49 Code of • Hand Delivery: 1200 New Jersey scheduling a public hearing in Federal Regulations (CFR), this provides Avenue SE, Room W12–140, connection with these proceedings since the public notice that on January 17, Washington, DC 20590, between 9 a.m. the facts do not appear to warrant a 2018, SMS Rail Service petitioned the and 5 p.m., Monday through Friday, hearing. If any interested parties desire Federal Railroad Administration (FRA) except Federal Holidays. an opportunity for oral comment and a for a waiver of compliance from certain Communications received by March public hearing, they should notify FRA, provisions of the Federal railroad safety 19, 2018 will be considered by FRA

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before final action is taken. Comments Amtrak requests relief for the two Anyone can search the electronic received after that date will be Talgo Series 8 trainsets from the form of any written communications considered if practicable. requirements of 49 CFR 238.131(b), and comments received into any of our Anyone can search the electronic Safety System for Manual and Powered dockets by the name of the individual form of any written communications Side Doors—propulsion interlock, submitting the comment (or signing the and comments received into any of our which applies to passenger cars document, if submitted on behalf of an dockets by the name of the individual beginning service after February 5, 2018, association, business, labor union, etc.). submitting the comment (or signing the and § 238.133, Exterior side door safety Under 5 U.S.C. 553(c), DOT solicits document, if submitted on behalf of an systems—all passenger cars and comments from the public to better association, business, labor union, etc.). locomotives used in a passenger service. inform its processes. DOT posts these Under 5 U.S.C. 553(c), DOT solicits The Talgo Series 8 trainsets currently comments, without edit, including any comments from the public to better in operation have been in service since personal information the commenter inform its processes. DOT posts these 2013 and are therefore exempt from the provides, to www.regulations.gov, as comments, without edit, including any requirements of §§ 238.131(b) and described in the system of records personal information the commenter 238.133 because they were ordered prior notice (DOT/ALL–14 FDMS), which can provides, to www.regulations.gov, as to April 5, 2016 and placed into service be reviewed at https:// described in the system of records prior to February 5, 2018. The Talgo www.transportation.gov/privacy. See notice (DOT/ALL–14 FDMS), which can Series 8 trainsets to be leased are also https://www.regulations.gov/ be reviewed at https:// identical to the Series 8 trainsets privacyNotice for the privacy notice of www.transportation.gov/privacy. See currently in operation. The relief would regulations.gov. also https://www.regulations.gov/ apply only to the trainsets to be leased Issued in Washington, DC. privacyNotice for the privacy notice of from Talgo that have never been placed regulations.gov. in service. Robert C. Lauby, Associate Administrator for Railroad Safety Issued in Washington, DC. A copy of the petition, as well as any Chief Safety Officer. Robert C. Lauby, written communications concerning the [FR Doc. 2018–01961 Filed 1–31–18; 8:45 am] Associate Administrator for Railroad Safety, petition, is available for review online at BILLING CODE 4910–06–P Chief Safety Officer. www.regulations.gov and in person at [FR Doc. 2018–01960 Filed 1–31–18; 8:45 am] the Department of Transportation’s Docket Operations Facility, 1200 New BILLING CODE 4910–06–P Jersey Ave. SE, W12–140, Washington, DEPARTMENT OF TRANSPORTATION DC 20590. The Docket Operations Federal Railroad Administration DEPARTMENT OF TRANSPORTATION Facility is open from 9 a.m. to 5 p.m., Monday through Friday, except Federal [Docket Number FRA–2002–14116] Federal Railroad Administration Holidays. Interested parties are invited to Petition for Waiver of Compliance [Docket Number FRA–2018–0005] participate in these proceedings by Under part 211 of Title 49 of the Code submitting written views, data, or Petition for Waiver of Compliance of Federal Regulations (CFR), this comments. FRA does not anticipate provides the public notice that on Under part 211 of Title 49 of the Code scheduling a public hearing in January 23, 2018, Grand Trunk Western of Federal Regulations (CFR), this connection with these proceedings since Railroad Company (GTW), which provides the public notice that on the facts do not appear to warrant a operates under the trade name Canadian January 2, 2018, the National Railroad hearing. If any interested parties desire National Railway (CN), has petitioned Passenger Corporation (Amtrak) an opportunity for oral comment, they the Federal Railroad Administration petitioned the Federal Railroad should notify FRA, in writing, before (FRA) for an extension of an existing Administration (FRA) for a waiver of the end of the comment period and waiver of compliance from certain compliance from certain provisions of specify the basis for their request. the Federal railroad safety regulations All communications concerning these provisions of the Federal railroad safety contained at 49 CFR part 238, Passenger proceedings should identify the regulations contained at 49 CFR Equipment Safety Standards. FRA appropriate docket number and may be 236.408, Route Locking, and to make the assigned the petition docket number submitted by any of the following waiver of compliance permanent. FRA FRA–2018–0005. methods: assigned the petition docket number Amtrak plans to lease two articulated • Website: http:// FRA–2002–14116. Series 8 trainsets from Tren Articulado www.regulations.gov. Follow the online In 2002 CN requested permission to Ligero Goicoechea Oriol (Talgo) to instructions for submitting comments. operate the 32nd Street Crossover, support its Cascade intercity service. • Fax: 202–493–2251. power operated switches, at milepost The Cascade service operates between • Mail: Docket Operations Facility, 333.28, in the existing traffic control Eugene, OR and Vancouver, BC. The U.S. Department of Transportation, 1200 system, at Port Huron, Michigan, on the service uses both Talgo Series 6 and New Jersey Avenue SE, W12–140, Flint Subdivision, Midwest Division, Series 8 trainsets. Amtrak currently has Washington, DC 20590. without Route Locking. The request was two Series 8 trainsets now in service • Hand Delivery: 1200 New Jersey based on the fact that the crossover that were purchased by the state of Avenue SE, Room W12–140, design is not uncommon in the railroad Oregon in 2013. The two train sets to be Washington, DC 20590, between 9 a.m. industry, and provides all the requisite leased from Talgo were originally built and 5 p.m., Monday through Friday, components and safety features of a for the state of Wisconsin in 2013 but except Federal Holidays. standard interlocking, or an electric lock never purchased. The trainsets have Communications received by March location. FRA initially granted CN’s never been operated but have been 19, 2018 will be considered by FRA request in 2003, extending the relief in stored in serviceable condition at the before final action is taken. Comments 2008 and 2013. Amtrak Beech Grove facility in Beech received after that date will be CN states that it has operated under Grove, IN. considered if practicable. this waiver for fifteen years without

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incident, therefore it believes that • Website: http:// be reviewed at https:// making the relief permanent is www.regulations.gov. Follow the online www.transportation.gov/privacy. See appropriate. instructions for submitting comments. also https://www.regulations.gov/ • Fax: 202–493–2251. privacyNotice for the privacy notice of A copy of the petition, as well as any • written communications concerning the Mail: Docket Operations Facility, regulations.gov. petition, is available for review online at U.S. Department of Transportation, 1200 Issued in Washington, DC. www.regulations.gov and in person at New Jersey Avenue SE, W12–140, Robert C. Lauby, Washington, DC 20590. the U.S. Department of Transportation’s • Associate Administrator for Railroad Safety, (DOT) Docket Operations Facility, 1200 Hand Delivery: 1200 New Jersey Chief Safety Officer. Avenue SE, Room W12–140, New Jersey Avenue SE, W12–140, [FR Doc. 2018–01959 Filed 1–31–18; 8:45 am] Washington, DC 20590, between 9 a.m. Washington, DC 20590. The Docket BILLING CODE 4910–06–P Operations Facility is open from 9 a.m. and 5 p.m., Monday through Friday, to 5 p.m., Monday through Friday, except Federal Holidays. except Federal Holidays. Communications received by March 19, 2018 will be considered by FRA DEPARTMENT OF THE TREASURY Interested parties are invited to before final action is taken. Comments participate in these proceedings by received after that date will be Community Development Financial submitting written views, data, or considered if practicable. Institutions Fund comments. FRA does not anticipate Anyone can search the electronic Funding Opportunity Title: Notice of scheduling a public hearing in form of any written communications connection with these proceedings since Funds Availability (NOFA) Inviting and comments received into any of our Applications for Financial Assistance the facts do not appear to warrant a dockets by the name of the individual hearing. If any interested parties desire (FA) Awards or Technical Assistance submitting the comment (or signing the (TA) Grants Under the Native American an opportunity for oral comment and a document, if submitted on behalf of an public hearing, they should notify FRA, CDFI Assistance (NACA Program) association, business, labor union, etc.). Fiscal Year (FY) 2018 Funding Round in writing, before the end of the Under 5 U.S.C. 553(c), DOT solicits comment period and specify the basis comments from the public to better Announcement Type: Announcement for their request. inform its processes. DOT posts these of funding opportunity. All communications concerning these comments, without edit, including any Funding Opportunity Number: CDFI– proceedings should identify the personal information the commenter 2018–NACA. appropriate docket number and may be provides, to www.regulations.gov, as Catalog of Federal Domestic submitted by any of the following described in the system of records Assistance (CFDA) Number: 21.012. methods: notice (DOT/ALL–14 FDMS), which can Key Dates:

TABLE 1—FY 2018 NACA PROGRAM FUNDING ROUND—CRITICAL DEADLINES FOR APPLICANTS

Time Description Deadline (eastern time—ET) Submission method

Last day to contact Certification, Compliance February 28, 2018 ..... 11:59 p.m ...... Service Request via Award Management In- Monitoring and Evaluation (CCME) staff re- formation System (AMIS). garding CDFI Certification. CDFI certification applications ...... March 2, 2018 ...... 11:59 p.m ...... Electronically via AMIS. Create AMIS Account (New Applicants) ...... March 2, 2018 ...... 11:59 p.m ...... AMIS. SF424 (Application for Federal Assistance) ..... March 2, 2018 ...... 11:59 p.m ...... Electronically via Grants.gov. Last day to contact NACA Program staff ...... April 2, 2018 ...... 5:00 p.m ...... Service Request via AMIS or CDFI Fund Helpdesk: 202–653–0421. NACA Program Application for Financial As- April 4, 2018 ...... 11:59 p.m ...... AMIS. sistance (FA) or Technical Assistance (TA).

Executive Summary: Through the Emerging CDFIs’ organizational capacity development organizations, and NACA Program, the Community to serve their Target Markets and financial institutions through the Development Financial Institutions Sponsoring Entities ability to create Community Development Financial (CDFI) Fund provides (i) FA awards of Certified CDFIs that serve Native Institutions Program (CDFI Program), up to $1 million to Certified Community Communities. All awards provided the Native American CDFI Assistance Development Financial Institutions through this NOFA are subject to Program (NACA Program), the Bank (CDFIs) serving Native American, funding availability. Enterprise Award Program (BEA Alaska Native, or Native Hawaiian I. Program Description Program), the Capital Magnet Fund, and populations or Native American areas the Financial Education and Counseling defined as Federally-designated A. History: The CDFI Fund was Pilot Program. In addition, the CDFI reservations, Hawaiian homelands, established by the Riegle Community Fund has allocated more than $50.5 Alaska Native Villages and U.S. Census Development Banking and Financial billion in tax credit allocation authority Bureau-designated Tribal Statistical Institutions Act of 1994 to promote through the New Markets Tax Credit Areas (collectively, ‘‘Native economic revitalization and community Program (NMTC Program) and has Communities’’) to build their financial development through investment in and guaranteed $1.36 billion in bonds for capacity to lend to their Target Markets, assistance to CDFIs. Since its creation in Eligible CDFIs through the CDFI Bond and (ii) TA grants of up to $150,000 to 1994, the CDFI Fund has awarded more Guarantee Program. build Certified, Certifiable, and than $2.5 billion to CDFIs, community

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B. Priorities: Through the NACA Regulations, this NOFA, the products and services, and audit Program’s FA awards and TA grants, the Application, or the Uniform findings. In addition, the Uniform CDFI Fund invests in and builds the Requirements. Details regarding Requirements include guidance on audit capacity of for-profit and non-profit Application content requirements are requirements and other award community based lending organizations found in the Application and related compliance requirements for Recipients. known as CDFIs. These organizations, materials. E. Funding Limitations: The CDFI certified as CDFIs by the CDFI Fund, D. Uniform Administrative Fund reserves the right to fund, in serve Native Communities. Requirements, Cost Principles, and whole or in part, any, all, or none of the C. Program Regulations: The Audit Requirements for Federal Awards Applications submitted in response to regulations governing the NACA (2 CFR 200): The Uniform Requirements this NOFA. The CDFI Fund also Program are found at 12 CFR parts 1805 codify financial, administrative, reserves the right to reallocate funds and 1815 (the Regulations) and are used procurement, and program management from the amount that is anticipated to by the CDFI Fund to govern, in general, standards that Federal award agencies be available through this NOFA to other the NACA Program, setting forth must follow. When evaluating award CDFI Fund initiatives that are designed evaluation criteria and other program applications, awarding agencies must to benefit Native American, Native requirements. The CDFI Fund evaluate the risks to the program posed Hawaiian, and Alaskan Native encourages Applicants to review the by each applicant, and each applicant’s communities, particularly if the CDFI Regulations; this NOFA; the merits and eligibility. These Fund determines that the number of Application; and the Uniform requirements are designed to ensure that awards made through this NOFA is Administrative Requirements, Cost applicants for Federal assistance receive fewer than projected. Principles, and Audit Requirements for a fair and consistent review prior to an II. Federal Award Information Federal Awards (2 CFR 200; 78 Federal award decision. This review will assess Register 78590) (the Uniform items such as the Applicant’s financial A. Funding Availability: Requirements) for a complete stability, quality of management 1. FY 2018 Funding Round: The CDFI understanding of the NACA Program. systems, the soundness of its business Fund expects to award, through this Capitalized terms in this NOFA are plan, history of performance, ability to NOFA, approximately $15.5 million as defined in the authorizing statute, the achieve measurable impacts through its indicated in the following table:

TABLE 2—FY 2018 FUNDING ROUND ANTICIPATED CATEGORY AMOUNTS

Award amount Estimate Estimated Estimated average Average Funding categories (see definition in total amount number of amount amount Table 7 for TA or Table 8 for FA) to be awarded Minimum Maximum awards for awarded in awarded in (millions) FY 2018 FY 2018 FY 2017

FA ...... $10.95 $150,000 $1,000,000 19 $577,000 $577,000 Persistent Poverty Counties—Financial Assistance (PPC–FA)...... 1.55 100,000 300,000 8 195,000 195,000 TA ...... 3 10,000 150,000 20 147,000 147,000

Total (FA, PPC–FA, and TA) ...... 15.5 ...... 47 ...... Disability Funds—Financial Assistance (DF–FA) * ...... 2.5 100,000 500,000 10 250,000 N/A Healthy Food Financing Initiative—Finan- cial Assistance (HFFI–FA) * ...... 22 500,000 5,000,000 10 2,200,000 1,700,000 * DF–FA and HFFI–FA appropriation will be allocated in one competitive round between the NACA and CDFI Program NOFAs.

The CDFI Fund reserves the right to date of this NOFA, the CDFI Fund is years after the date of the award award more or less than the amounts operating under a continuing funding announcement or (iii) a Sponsoring cited above in each category, based resolution as enacted by the Extension Entity award Recipient’s four full years upon available funding and other of Continuing Appropriations Act, 2018 after the award announcement, during factors, as appropriate. (Public Law 115–120) and which the Recipient must meet the 2. Funding Availability for the FY Supplemental Appropriations for performance goals set forth in the 2018 Funding Round: Funds for the FY Disaster Relief Requirements Act, 2017 Assistance Agreement. The period of 2018 Funding Round are subject to (Pub. L.115–56). performance for FA awards begins with change based on passage of a final FY 3. Anticipated Start Date and Period the date of the award announcement 2018 budget; if Congress does not of Performance: The CDFI Fund and includes a Recipient’s three full appropriate funds for the NACA anticipates the period of performance consecutive fiscal years after the date of Program there will not be an FY 2018 for the FY 2018 Funding Round will the notice of the award, during which Funding Round. If funds are begin in late September 2018. time the Recipient must meet the appropriated, the amount of such funds Specifically, the period of performance performance goals set forth in the may be greater or less than the amounts for TA grants begins with the date of the Assistance Agreement. set forth above. The CDFI Fund reserves notice of the award and includes either the right to contact applicants to seek (i) an Emerging or Certifiable CDFI B. Types of Awards: Through the additional information in the event that Recipient’s three full consecutive fiscal NACA Program, the CDFI Fund final FY 2018 appropriations for the years after the date of the notice of the provides two types of awards: Financial NACA Program change any of the award or (ii) a Certified CDFI Assistance (FA) and Technical requirements of this NOFA. As of the Recipient’s two full consecutive fiscal Assistance (TA) awards. An Applicant

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may submit an Application for a TA Investments, deposits and credit union expended for activities serving grant or an FA award, but not both. shares. The form of the DF–FA award is Commercial Real Estate, Small Business, 1. FA Awards: FA awards can be in based on the form of the matching funds Microenterprise, Community Facilities, the form of loans, grants, Equity that the Applicant includes in its Consumer Financial Products, Investments, deposits and credit union Application, unless Congress waives the Consumer Financial Services, shares. The form of the FA award is matching funds requirement. Matching Commercial Financial Services, based on the form of the matching funds funds are required for DF–FA awards, Affordable Housing, Intermediary that the Applicant includes in its must be from non-Federal sources, and Lending to Non-Profits and CDFIs, and Application, unless Congress waives the cannot have been used as matching other lines of business as deemed matching funds requirement. Matching funds for any other Federal award. The appropriate by the CDFI Fund in the funds are required for FA awards, must CDFI Fund reserves the right, in its sole following five categories: (i) Financial be from non-Federal sources, and discretion, to provide a DF–FA award in Products; (ii) Financial Services; (iii) cannot have been used as matching an amount other than that which the Loan Loss Reserves; (iv) Development funds for any other Federal award. The Applicant requests; however, the award Services; and (v) Capital Reserves. FA CDFI Fund reserves the right, in its sole amount will not exceed the Applicant’s discretion, to provide an FA award in an award request as stated in its Recipients must meet Performance amount other than that which the Application. The DF–FA award is Goals, which will be derived from Applicant requests; however, the award evaluated independently from the FA projections and attestations provided by amount will not exceed the Applicant’s award and will not affect the FA award the Applicant in its application, to award request as stated in its evaluation or amount. achieve one or more of the following FA Application. 4. Healthy Food Financing Initiative— Objectives: (i) Increase Volume of 2. Persistent Poverty Counties— Financial Assistance (HFFI–FA) Financial Products or Financial Services Financial Assistance (PPC–FA) Awards: Awards: HFFI–FA awards will be in an Eligible Market(s) or in the PPC–FA awards will be provided as a provided as a supplement to FA awards; Applicant’s approved Target Market; (ii) supplement to FA awards; therefore, therefore, only those Applicants that Serve New Geographic Area or Areas; only those Applicants that are selected have been selected to receive an FA (iii) Provide New Financial Products in to receive an FA award through the award through the NACA Program FY an Eligible Market(s) or in the NACA Program FY 2018 Funding 2018 Funding Round will be eligible to Applicant’s approved Target Market, Round will be eligible to receive a PPC– receive an HFFI–FA award. HFFI–FA New Financial Services in an Eligible FA award. PPC–FA awards can be in the awards can be in the form of loans, Market(s) or in the Applicant’s form of loans, grants, Equity Investment, grants, Equity Investments, deposits and approved Target Market, or New deposits and credit union shares. The credit union shares. The form of the Development Services in an Eligible form of the PPC–FA award is based on HFFI–FA award is based on the form of Market(s) or in the Applicant’s the form of the matching funds that the the matching funds that the Applicant approved Target Market; and (iv) Serve Applicant includes in its Application, includes in its Application, unless New Targeted Population or unless Congress waives the matching Congress waives the matching funds Populations. At the end of each year of funds requirement. Matching funds are requirement. Matching funds are the period of performance, fifty (50) required for PPC–FA awards, must be required for HFFI–FA awards, must be percent or more of the Financial from non-Federal sources, and cannot from non-Federal sources, and cannot Products closed by NACA Recipients have been used as matching funds for have been used as matching funds for must be in Native Communities. FA any other Federal award. The CDFI any other Federal award. The CDFI awards can only be used for Direct Costs Fund reserves the right, in its sole Fund reserves the right, in its sole associated with an eligible activity; no discretion, to provide a PPC–FA award discretion, to provide an HFFI–FA indirect expenses are allowed. Up to 15 in an amount other than that which the award in an amount other than that percent of the FA award can be used for Applicant requests; however, the award which the Applicant requests; however, Direct Administrative Expenses amount will not exceed the Applicant’s the award amount will not exceed the associated with an eligible FA activity. award request as stated in its Applicant’s award request as stated in ‘‘Direct Administrative Expenses’’ shall Application. its Application. The HFFI–FA award is mean Direct Costs, as described in The PPC–FA award is evaluated evaluated independently from the FA section 2 CFR 200.413 of the Uniform independently from the FA award and award and will not affect the FA award Requirements, which are incurred by will not affect the FA award evaluation evaluation or amount. or amount. 5. TA Grants: TA is provided in the the Recipient to carry out the Financial 3. Disability Funds—Financial form of grants. The CDFI Fund reserves Assistance. Direct Costs incurred to Assistance (DF–FA) Awards: DF–FA the right, in its sole discretion, to provide Development Services or awards will be provided as a provide a TA grant in an amount other Financial Services do not constitute supplement to FA awards; therefore, than which the Applicant requests; Direct Administrative Expenses. The only those Applicants that have been however, the TA grant amount will not Recipient must comply, as applicable, selected to receive an FA award through exceed the Applicant’s request as stated with the Buy American Act of 1933, 41 the NACA Program FY 2018 Funding in its Application. U.S.C. 8301–8303, with respect to any Round will be eligible to receive a DF– C. Eligible Activities: Direct Costs. For purposes of this FA award. DF–FA awards can be in the 1. FA Awards: FA, PPC–FA, DF–FA, NOFA, the five eligible activity form of loans, grants, Equity and HFFI–FA award funds can be categories are defined as follows:

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TABLE 3—FA, PPC–FA, DF–FA, AND HFFI–FA ELIGIBLE ACTIVITY CATEGORIES

FA eligible activity definition—all FA eligible activities must be in an FA eligible activity eligible market or the applicant’s approved target market Eligible CDFI institution types

i. Financial Products ...... FA expended as loans, Equity Investments and similar financing ac- All. tivities (as determined by the CDFI Fund) including the purchase of loans originated by certified CDFIs and the provision of loan guar- antees; in the case of CDFI Intermediaries, Financial Products may also include loans to CDFIs and/or emerging CDFIs and deposits in Insured Credit Union CDFIs, emerging Insured Credit Union CDFIs, and/or State-Insured Credit Union CDFIs. For HFFI–FA, however, the purchase of loans originated by certified CDFIs is not an Eligible Activity. ii. Financial Services ...... FA expended for providing checking, savings accounts, check cash- Insured Depository Institutions and ing, money orders, certified checks, deposit taking, safe deposit Depository Institution Holding box services, and other similar services. Company only. Not applicable for HFFI-FA Recipi- ents. iii. Loan Loss Reserves ...... FA set aside in the form of cash reserves, or through accounting- All. based accrual reserves, to cover losses on loans, accounts, and notes receivable or for related purposes that the CDFI Fund deems appropriate. iv. Development Services ...... FA expended for activities undertaken by a CDFI, its Affiliate or con- All. tractor that promote community development and shall prepare or assist current or potential borrowers or investees to use the CDFI’s Financial Products or Financial Services. For example, such activi- ties include, financial or credit counseling; homeownership coun- seling; and business planning and management assistance. v. Capital Reserves ...... FA set aside as reserves to support the Applicant’s ability to leverage Insured Depository Institutions and other capital, for such purposes as increasing its net assets or pro- Depository Institution Holding vide financing, or for related purposes as the CDFI Fund deems Company only. appropriate. Not applicable for DF–FA.

Eligible Market is defined as (i) a Such financing activities have a primary defined by the American Disabilities geographic area meeting the purpose of directly or indirectly Act (ADA) at https://www.ada.gov/ requirements set forth in 12 CFR benefiting individuals with disabilities cguide.htm. 1805.201(b)(3)(ii), or (ii) individuals that where the majority of the DF–FA 3. TA Grants: TA grant funds can be are Low-Income or are African supported loans or investments benefit expended for the following seven American, Hispanic or American individuals with disabilities. Eligible eligible activity categories: (i) Indian, Native Hawaiians residing in DF–FA financing activities may include, Compensation—personnel services; (ii) Hawaii, Native Alaskans residing in among other activities, loans to develop Compensation—fringe benefits; (iii) Alaska, and Other Pacific Islanders or purchase affordable, accessible, and Professional Service Costs; (iv) Travel residing in American Samoa, Guam or safe housing; loans to provide or Costs; (v) Training and Education Costs; the Northern Mariana Islands. facilitate employment opportunities; (vi) Equipment and other capital 2. DF–FA Award: DF–FA award funds and loans to purchase assistive expenditures; and (vii) Supplies. Each can only be expended for eligible FA technology. of the eligible activity categories will activities referenced in Table 3 to For the purposes of DF–FA, a person not be authorized for indirect costs or an directly or indirectly benefit individuals with a Disability is: A person who has associated indirect cost rate. The with disabilities. The DF–FA Recipient a physical or mental impairment that Recipient must comply, as applicable, must close Financial Products for the substantially limits one or more major with the Buy American Act of 1933, 41 primary purpose of directly or indirectly life activities, a person who has a U.S.C. 8301–8303, with respect to any benefiting people with disabilities in an history or record of such an impairment, Direct Costs. For purposes of this amount equal to or greater than 85 or a person who is perceived by others NOFA, the seven eligible activity percent of the total DF–FA provided. as having such an impairment, as categories are defined as follows:

TABLE 4—TA ELIGIBLE ACTIVITY CATEGORIES AS SUBJECT TO THE APPLICABLE PROVISIONS OF THE UNIFORM REQUIREMENTS

(i) Compensation—personnel serv- TA paid to cover salaries of the Applicant’s personnel that are paid currently or accrued by the Applicant ices. for work performed directly related to carrying out the purpose of the TA grant (including activities re- lated to becoming certified as a CDFI). Any work performed directly but unrelated to the purposes of the TA grant cannot be paid as Compensa- tion through a TA grant. For example, the salaries for building maintenance would not carry out the pur- pose of a TA grant and would be deemed unallowable. (ii) Compensation—fringe benefits TA paid to cover costs of the Applicant’s personnel employment (other than the employees’ salaries). The costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, non-Federal entity-employee agreement, or an established policy of the non-Federal entity and consist- ently applied organizational policies.

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TABLE 4—TA ELIGIBLE ACTIVITY CATEGORIES AS SUBJECT TO THE APPLICABLE PROVISIONS OF THE UNIFORM REQUIREMENTS—Continued (iii) Professional service costs ...... TA used to pay for professional and consultant services (e.g., such as strategic and marketing plan devel- opment), rendered by persons who are members of a particular profession or possess a special skill (e.g., credit analysis, portfolio management), and who are not officers or employees of the Recipient. Payment for a consultant’s services may not exceed the current maximum of the daily equivalent rate paid to an Executive Schedule Level IV Federal employee. Professional and consultant services must build the capacity of the CDFI. For example, professional services that provide direct development serv- ices to the customers does not build the capacity of the CDFI to provide those services and would not be eligible. (iv) Travel costs ...... TA used to pay expenses for transportation, lodging, subsistence, and related items incurred by the Appli- cant’s personnel (does not include consultants or board members) who are on travel status on business related to the TA grant. Any payments for travel expenses incurred by the Applicant’s personnel but un- related to carrying out the purpose of the TA grant would be deemed unallowable. As such, documenta- tion must be maintained that justifies the travel as necessary to the TA grant. (v) Training and education costs .... TA used to pay the cost of training and education provided for employee development. TA can only be used to pay for training costs incurred by the Applicant’s personnel (does not include consultants or board members). (vi) Equipment ...... TA used to pay for tangible personal property, having a useful life of more than one year and a per-unit acquisition cost of at least $5,000. For example, items such as office furnishings and information tech- nology systems are allowable as Equipment costs. The Recipient must comply, as applicable, with the Buy American Act of 1933, 41 U.S.C. 8301–8303 with respect to the purchase of Equipment. (vii) Supplies ...... TA used to pay for tangible personal property with a per unit acquisition cost of less than $5,000. For ex- ample, a desktop computer costing $1,000 is allowable as a Supply cost. The Recipient must comply, as applicable, with the Buy American Act of 1933, 41 U.S.C. 8301–8303 with respect to the purchase of Supplies. (viii) Unallowable Costs ...... The following costs are unallowable and cannot be paid for with a TA grant (but not limited to per the UAR): • Selling or marketing products or services of the non-federal entity that are not directly related to building the capacity of the CDFI; Advertising media, including printing of materials, the cost of displays, demonstrations, and exhibits that are not directly related to building the capacity of the CDFI; • Promotional items and memorabilia;

• Advertising and public relations designed solely to promote the non-Federal entity that are not directly related to building the capacity of the CDFI; • Facilities acquisition/development costs; • Fees, including fees paid to brokers, promoters, organizers, management consultants, attor- neys, accountants, or investment counselor; • Memberships in country clubs or organizations whose primary purpose is lobbying; • Audit costs for audits either: (1) Required under the Single Audit Act but have not been con- ducted or have been conducted but not in accordance with the Single Audit Act requirements; or (2) for a non-Federal entity that is exempted from having an audit conducted in the Single Audit act.

4. HFFI–FA Award: HFFI–FA award b. Recipient must demonstrate that it including, but not limited to, grocery funds can only be expended for eligible has closed Financial Products to stores, mobile food retailers, farmers FA activities referenced in Table 3. The Healthy Food Retail Outlets located in markets, retail cooperatives, corner HFFI–FA investments must comply Food Deserts in the Recipient’s Target stores, bodegas, stores that sell other with the following guidelines: Market in an amount equal to 75 percent food and non-food items along with a of the total HFFI Financial Assistance range of Healthy Foods, as those terms a. Recipient must close Financial provided. are determined and defined by the CDFI Products for Healthy Food Retail Outlets Fund in the Assistance Agreement and Definitions and Healthy Food Non-Retail Outlets in related compliance materials. its Target Market in an amount equal to Healthy Foods. Healthy Foods include Healthy Food Non-Retail Outlets. or greater than 100 percent of the total unprepared nutrient-dense foods and Wholesalers of Healthy Foods HFFI Financial Assistance provided. beverages as set forth in the USDA including, but not limited to, wholesale Eligible financing activities to Healthy Dietary Guidelines for Americans 2015– food outlets, wholesale cooperatives, or Food Retail Outlets and Healthy Food 2020 including whole fruits and other non-retail food producers that Non-Retail Outlets require that the vegetables, whole grains, fat free or low- supply for sale a range of Healthy Food majority of the loan or investment be fat dairy foods, lean meats and poultry options; entities that produce or devoted to offering a range of Healthy (fresh, refrigerated, frozen or canned). distribute Healthy Foods for eventual Food choice, which may include, among Healthy Foods should have low or no retail sale, and entities that provide other activities, investments supporting added sugars, and be low-sodium, consumer education regarding the an existing retail store or wholesale reduced sodium, or no-salt-added. (See consumption of Healthy Foods, as those operation upgrade to offer an expanded USDA Dietary Guidelines: http:// terms are determined and defined by the range of Healthy Food choices, or www.choosemyplate.gov/dietary- CDFI Fund in the Assistance Agreement supporting a nonprofit organization that guidelines). and related compliance materials. expands the availability of Healthy Healthy Food Retail Outlets. Food Deserts. Distressed geographic Foods in underserved areas. Commercial sellers of Healthy Foods areas where either a substantial number

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or share of residents has low access to 1805.201(b)(3)(ii)(D), and (ii) has been Documents/Persistent%20Poverty%20 a supermarket or large grocery store. For identified as having low access to a Counties%20CDFI%20Fund%20July6- the purpose of satisfying this supermarket or grocery store through a 2017.xlsx. requirement, a Food Desert must either: methodology that has been adopted for III. Eligibility Information (1) Be a census tract determined to be use by another governmental or a Food Desert by the U.S. Department of philanthropic healthy food initiative. A. Eligible Applicants: For the Agriculture (USDA), in its USDA Food 5. PPC–FA Award: PPC–FA award purposes of this NOFA, the following Access Research Atlas; (2) be a census funds can only be expended for eligible tables set forth the eligibility criteria to tract adjacent to a census tract FA activities referenced in Table 3. The be in contention to receive an award determined to be a Food Desert by the PPC–FA Recipient must close Financial from the CDFI Fund, along with certain USDA, in its USDA Food Access Products to an Eligible Market or in the definitions of terms. There are four Research Atlas; which has a median Applicant’s approved Target Market in categories of Applicant eligibility family income less than or equal to 120 a Persistent Poverty Counties (PPC) in criteria: (1) CDFI certification criteria percent of the applicable Area Median an amount equal to or greater than 100 (Table 5); (2) requirements that apply to Family Income; or (3) be a Geographic percent of the total PPC Financial all Applicants (Table 6); (3) Unit as defined in 12 CFR part Assistance provided. requirements that apply to TA 1805.201(b)(3)(ii)(B), which (i) The specific counties that meet the Applicants (Table 7); and (4) individually meets at least one of the criteria for ‘‘persistent poverty’’ can be requirements that apply to FA criteria in 12 CFR part found at: https://www.cdfifund.gov/ Applicants (Table 8).

TABLE 5—CDFI CERTIFICATION CRITERIA DEFINITIONS

Certified CDFI ...... • An entity that the CDFI Fund has officially notified that it meets all CDFI certification requirements. Certifiable CDFI ...... • An entity that has submitted a CDFI certification application to the CDFI Fund demonstrating that it meets the CDFI certification requirements but which has not yet been officially certified. (See Table 12 for application submission deadlines.) • The CDFI Fund will not enter into an Assistance Agreement or make an FA award payment unless and until an Applicant is a Certified CDFI. • The CDFI Fund will enter into an Assistance Agreement if the Applicant is awarded a TA award regard- less of the Applicant’s certification status. Emerging CDFI (TA Applicants) ..... • A non-Certified entity that has not submitted a CDFI certification application but demonstrates to the CDFI Fund in its Application that it has an acceptable plan to meet CDFI certification requirements by the end of its period of performance, or another date that the CDFI Fund selects. • An Emerging CDFI that has prior award(s) will be held to the CDFI certification performance goal and measure(s) stated in its prior Assistance Agreement(s). • Emerging CDFIs may only apply for TA grants; they are not eligible to apply for FA awards. • Emerging CDFI selected to receive a TA grant will be required to become a Certified CDFI by a date specified in the Assistance Agreement. Sponsoring Entity ...... • Sponsoring Entities include any legal organization that primarily serves Native Community with ‘‘primary’’ meaning, at least 50 percent of its activities are directed toward the Native Community. • An eligible organization that proposes to create a separate legal organization that will become a Certified CDFI serving Native Communities. • Sponsoring Entities may only apply for TA grants; they are not eligible to apply for FA awards. • Each Sponsoring Entity selected to receive a TA grant will be required to create and certify an Emerging CDFI by the dates specified in the Assistance Agreement. Definition of Native Other Targeted The CDFI Fund uses the following definitions, set forth in the Office of Management and Budget (OMB) Population as Target Market. Notice, Revisions to the Standards for the Classification of Federal Data on Race and Ethnicity (October 30, 1997), as amended and supplemented: • American Indian, Native American, or Alaska Native: A person having origins in any of the original peo- ples of North and South America (including Central America) and who maintains tribal affiliation or com- munity attachment; and • Native Hawaiian (living in Hawaii): A person having origins in any of the original peoples of Hawaii.

TABLE 6—ELIGIBILITY REQUIREMENTS FOR ALL APPLICANTS

Applicant ...... • Only the entity that will carry out the proposed award activities can apply for an award (i.e., the intended Recipient, other than Depository Institution Holding Companies (see below) and Sponsoring Entities). Recipients cannot create a new legal entity to carry out the proposed award activities (except for Spon- soring Entities). • The information in the Application should only reflect the activities of the Applicant, including the presen- tation of financial and portfolio information. Do not include financial or portfolio information from parent companies, Affiliates, or Subsidiaries in the Application unless it relates to the provision of Development Services. • An Applicant that applies on behalf of another organization will be rejected without further consideration, other than Depository Institution Holding Companies (see below). Application type and submission • Applicants must submit the required application documents listed in Table 10. overview through Grants.gov and • The CDFI Fund will only accept Applications that use the official application templates provided on the Awards Management Information Grants.gov and AMIS websites. Applications submitted with alternative or altered templates will not be System (AMIS). considered. • Applicants have a two-step process that requires the submission of application documents on two sepa- rate deadlines and locations: (1) The SF–424 in Grants.gov and (2) all other required application mate- rials in AMIS.

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TABLE 6—ELIGIBILITY REQUIREMENTS FOR ALL APPLICANTS—Continued • Grants.gov and the SF–424: Æ Grants.gov: Applicants must submit the Office of Management and Budget (OMB) Standard Form (SF) OMB SF–424, Application for Federal Assistance. Æ All Applicants must register in the Grants.gov system to successfully submit an application. The Grants.gov registration process can take 30 days or more to complete. The CDFI Fund strongly en- courages applicants to register as early as possible. Æ The CDFI Fund will not extend the SF–424 (or AMIS) application deadline for any Applicant that started the Grants.gov registration process on, before, or after the date of the publication of this NOFA, but did not complete it by the deadline except in the case of a Federal government adminis- trative or technological error that directly resulted in a late submission of the SF–424. Æ The SF–424 must be submitted in Grants.gov on or before March 2, 2018, the deadline listed in Table 1 and Table 12. Applicants are strongly encouraged to submit their SF–424 as early as pos- sible in the Grants.gov portal. Æ The deadline for the Grants.gov submission is before the AMIS deadline. Æ The SF–424 must be submitted under the NACA Program Funding Opportunity Number. Æ If the SF–424 is not accepted by Grants.gov by the deadline, the CDFI Fund will not review any material submitted in AMIS and the application will be deemed ineligible. • AMIS and all other required application materials: Æ AMIS is an enterprise-wide information technology system that replaced the myCDFI Fund portal. Applicants will use AMIS to submit and store organization and application information with the CDFI Fund. Æ Applicants are only allowed one NACA Program Application submission in AMIS. Æ Each Application in AMIS must be signed by an Authorized Representative. Æ Applicants must ensure that the Authorized Representative is authorized to sign legal documents on behalf of the organization; consultants working on behalf of the organization cannot be designated as Authorized Representatives. Æ Only the Authorized Representative or Application Point of Contact, included in the Application, can submit the Application in AMIS. Æ All required application materials must be submitted in AMIS on or before the deadline specified in Tables 1 and 12. Employer Identification Number • Applicants must have a unique EIN assigned by the Internal Revenue Service (IRS). (EIN). • The CDFI Fund will reject an Application submitted with the EIN of a parent or Affiliate organization. Dun & Bradstreet, (DUNS) number • Pursuant to OMB guidance (68 FR 38402), an Applicant must apply using its unique DUNS number in Grants.gov. • The CDFI Fund will reject an Application submitted with the DUNS number of a parent or Affiliate organi- zation. System for Award Management • SAM is a web-based, government-wide application that collects, validates, stores, and disseminates (SAM). business information about the federal government’s trading partners in support of the contract awards, grants, and electronic payment processes. • Applicants must register in SAM as part of the Grants.gov registration process. • Applicants must have a DUNS number and an EIN number in order to register in SAM. • Applicants must be registered in SAM before they can submit an SF–424 in Grants.gov. AMIS Accounts ...... • Each Applicant must register as an organization in AMIS and submit all required application materials through the AMIS portal. • The Application of any organization that does not properly register in AMIS by the deadline set forth in Table 1–FY 2018 NACA Program Funding Round Critical Deadlines for Applicants will be rejected with- out further consideration. • The Authorized Representative and/or Application Point of Contact must be included as ‘‘users’’ in the Applicant’s AMIS account. • An Applicant that fails to properly register and update its AMIS account may miss important communica- tion from the CDFI Fund or not be able to successfully submit an Application. 501(c)(4) status ...... • Pursuant to 2 U.S.C. 1611, any 501(c)(4) organization that engages in lobbying activities is not eligible for the receipt of a CDFI or NACA Program award. Compliance with Nondiscrimination • An Applicant may not be eligible to receive an award if proceedings have been instituted against it in, and Equal Opportunity Statutes, by, or before any court, governmental agency, or administrative body, and a final determination within Regulations, and Executive Or- the last three years indicates the Applicant has violated any of the following laws but not limited to: Title ders. VI of the Civil Rights Act of 1964, as amended (42 U.S.C.2000d); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); the Age Discrimination Act of 1975 (42 U.S.C. 6101–6107), and Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency. Depository Institution Holding Com- • In the case where a CDFI Depository Institution Holding Company Applicant intends to carry out the ac- pany Applicant. tivities of an award through its Subsidiary CDFI Insured Depository Institution, the Application must be submitted by the CDFI Depository Institution Holding Company and reflect the activities and financial performance of the Subsidiary CDFI Insured Depository Institution. • Authorized representatives of both the Depository Institution Holding Company and the Subsidiary CDFI Insured Depository Institution must certify that the information included in the Application represents that of the Subsidiary CDFI Insured Depository Institution, and that the award funds will be used to support the Subsidiary CDFI Insured Depository Institution for the eligible activities outlined in the Application. Insured CDFI—Insured Credit • To be eligible for an award, each Insured Depository Institution Applicant must have a CAMELS/CAMEL Union and Insured Depository In- rating (rating for banks and credit unions, respectively), by its Federal regulator of at least ‘‘3’’. stitution. • Organizations with CAMELS/CAMEL ratings of ‘‘4 or 5’’ will not be eligible for awards. • The CDFI Fund will also evaluate materials concerns identified by the Appropriate Federal Banking Agency in determining eligibility of Insured Depository Institution Applicants. Use of award ...... • All awards made through this NOFA must be used to support the Applicant’s activities in at least one of the FA or TA Eligible Activity Categories (see Section II.C).

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TABLE 6—ELIGIBILITY REQUIREMENTS FOR ALL APPLICANTS—Continued • Awards cannot be used to support the activities of, or otherwise be passed through, transferred, or co- awarded to, third-party entities, whether Affiliates, Subsidiaries, or others without the CDFI Fund’s prior written consent (other than Depository Institution Holding Company Applicants). • The Recipient of any award made through this NOFA must comply, as applicable, with the Buy Amer- ican Act of 1933, 41 U.S.C. 8301–8303, with respect to any Direct Costs. Requested award amount ...... • An Applicant must state its requested award amount in the Application in AMIS. An Application that does not include this amount will not be allowed to submit an Application. Pending resolution of noncompli- • The CDFI Fund will consider an Application submitted by an Applicant that has pending noncompliance ance. issues of any of its previously executed award agreement(s), if the CDFI Fund has not yet made a final compliance determination. Noncompliance status ...... • The CDFI Fund will not consider an Application submitted by an Applicant that has a previously exe- cuted award agreement(s) if, as of the date of the Application, (i) the CDFI Fund has made a determina- tion that such entity is noncompliant with a previously executed agreement and (ii) the CDFI Fund has provided written notification that such entity is ineligible to apply for or receive any future CDFI Fund awards or allocations. Such entities will be ineligible to submit an Application for such time period as specified by the CDFI Fund in writing. • The CDFI Fund will not consider any Applicant that has defaulted on a NACA Program loan within five years of the Application deadline.

TABLE 7—ELIGIBILITY REQUIREMENTS FOR TA APPLICANTS

CDFI certification status ...... Certified, Certifiable, Emerging CDFIs, or Sponsoring Entities (see definitions in Table 5). Matching funds ...... • Matching funds documentation is not required for TA awards. Limitation on Awards ...... • An Emerging CDFI serving Native Communities will be allowed to receive no more than three TA awards as an uncertified CDFI. • A Sponsoring Entity is only eligible to apply for an award if (i) it does not have an active prior award or (ii) the certification goal in its active award’s Assistance Agreement has been satisfied and it proposes to create another CDFI that will serve one or more Native Communities. Proposed Activities ...... • Applicants must propose to directly undertake eligible activities with TA awards. For example, an uncertified CDFI Applicant must propose to become certified as part of its application and a Certified CDFI Applicant must propose activities that build its capacity to serve its Target Market or an Eligible Market. • With the exception of Sponsoring Entities, Applicants may not propose to use a TA award to create a separate legal entity to become a certified CDFI or otherwise carryout the TA award activities. Target Market ...... • TA Applicants must demonstrate that the Certified, Certifiable, Emerging CDFI, or the CDFI to be cre- ated by the Sponsoring Entity will primarily serve one or more Native Community as its Target Market.

TABLE 8—ELIGIBILITY REQUIREMENTS FOR FA APPLICANTS

CDFI certification status ...... • Each FA Applicant must be a Certified CDFI prior to the announcement of award decisions. • The CDFI Fund will consider an Application submitted by an Applicant that has pending noncompliance issues with its Annual Certification Report, if the CDFI Fund has not yet made a final compliance deter- mination. Activities in Native Communities .... • For consideration under this NOFA, each FA Applicant must: Æ Demonstrate that at least 50 percent of its past activities were in one or more Native Communities; and Æ describe how it will target its lending/investing activities to one or more Native Communities. Target Market ...... • For consideration under this NOFA, an FA Applicant’s certification Target Market must have one or more of the following characteristics: Æ For qualifying with an investment area Target Market, the Applicant must demonstrate that the in- vestment area approved for certification is also a geographic area of Federally-designated reserva- tions, Hawaiian homelands, Alaska Native Villages and U.S. Census Bureau designated Tribal Sta- tistical Areas; and/or Æ For qualifying with an Other Targeted Population (OTP) Target Market, the applicant’s Target Mar- ket approved for certification must be an OTP of Native Americans or American Indians, including Alaska Natives living in Alaska and Native Hawaiians living in Hawaii. • Any FA Applicant whose certification Target Market does not meet either of the conditions above will not be eligible for an FA award under this NOFA. Community collaboration ...... • All FA Applicants must demonstrate strong community collaboration with Native Communities. Matching funds documentation ...... • All Applicants must submit acceptable documentation attesting that they have received or will receive matching funds. Applicants that do not submit the Matching Funds Excel Workbook documenting the source of their matching funds will not be evaluated. • Awards will be limited to no more than two times the amount of In-Hand or Committed matching funds documentation provided at the time of Application. • Awards will be obligated in like form to the matching funds provided at time of Application. See Table 9. Matching Funds ‘‘Determination of Award Form’’ for additional guidance. • Award payments from the CDFI Fund will require eligible dollar-for-dollar In-Hand matching funds for the total payment amount. Recipients will not receive a payment until 100 percent of their matching funds are In-Hand. • The CDFI Fund will reduce and de-obligate the remaining balance of any Award that does not dem- onstrate full dollar-for-dollar matching funds equal to the announced award amount by the end of the Matching Funds Window.

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TABLE 8—ELIGIBILITY REQUIREMENTS FOR FA APPLICANTS—Continued $5 Million funding cap ...... • The CDFI Fund is prohibited from obligating more than $5 million in CDFI and NACA Program awards, in the aggregate, to any one organization and its Subsidiaries and Affiliates during any three-year period. • For purposes of this NOFA and subject to final FY 2018 appropriations language, the CDFI Fund will in- clude CDFI and NACA Program final awards in the cap calculation that were provided to an Applicant (and/or its Subsidiaries or Affiliates) under the FY 2016 and 2017 funding rounds, as well as the re- quested FY 2018 award, excluding DF–FA and HFFI–FA awards. The CDFI Fund will make the FY 2018 funding round award announcements after September 10, 2018. FA Applicants with Community • A NACA Applicant can apply for assistance jointly with a Community Partner. The NACA Applicant Partners. would complete the NACA Program Application for (FA) and would address the Community Partnership in its business plan and other sections of the Application as specified in the guidance materials. • The NACA Applicant must be either a Certified or Certifiable CDFI as defined in Table 5. • An Application with a Community Partner must: Æ Describe how the NACA Applicant and Community Partner will each participate in carrying out the partnership and how the partnership will enhance activities serving the investment area or targeted population. Æ Demonstrate that the Community Partnership activities are consistent with the strategic plan sub- mitted by the NACA Applicant. • Assistance provided upon approval of an Application with a Community Partner shall only be entrusted to the NACA Applicant and shall not be used to fund any activity carried out directly by the Community Partner or an Affiliate or Subsidiary thereof. PPC–FA ...... • All PPC–FA Applicants must: Æ Submit a CDFI or NACA Program FA Application; Æ Meet all NACA FA award eligibility requirements; and Æ Provide a PPC–FA award request amount in AMIS. DF–FA ...... • All DF–FA Applicants must: Æ Submit a CDFI or NACA Program FA Application; Æ Meet all NACA FA award eligibility requirements; Æ Submit the DF–FA Application; and Æ Provide a DF–FA award request amount in AMIS. HFFI–FA ...... • All HFFI–FA Applicants must: Æ Submit a CDFI or NACA Program FA Application; Æ Meet all NACA FA award eligibility requirements; Æ Submit the HFFI–FA Application; and Æ Provide a HFFI–FA award request amount in AMIS.

B. Matching Funds Requirements: In dollar-for-dollar matching funds at the encourages Applicants to review the order to receive an FA award, an time of application submission. The Regulations at 12 CFR 1805.500, the Applicant must provide evidence of CDFI Fund will review matching funds Uniform Requirements, and the eligible dollar-for-dollar matching funds information, attestations, and matching matching funds guidance materials and attest that it can provide acceptable funds documentation, if applicable, available on the CDFI Fund’s website. documentation upon the CDFI Fund’s prior to award payment and will pay Table 9 provides a summary of the request. An Applicant that uses funds based upon eligible In-Hand matching funds requirements; Retained Earnings or Equity Investments matching funds (see Table 9 for the additional details are set forth in the must provide documentation of eligible definition of In-Hand). The CDFI Fund Application materials.

TABLE 9—MATCHING FUNDS REQUIREMENTS

In-Hand matching funds definition .. • Matching funds are In-Hand when the Applicant receives payment for the matching funds from the matching funds source and has acceptable documentation that can be provided to the CDFI Fund upon request. Acceptable In-Hand documentation must show the source, form (e.g., grant, loan, deposit, and Equity Investment), amount received, and the date the funds came into physical possession of the Appli- cant. • The following documentation, depending on the matching funds type, must be available to be provided to the CDFI Fund upon request: • Loan—the loan agreement and/or promissory note; • grant—the grant letter or agreement; • equity investment—the stock certificate, documentation of total equity outstanding, and shareholder agreement; • retained earnings—Retained Earnings Calculator and audited financial statements or call reports from regulating entity for each fiscal year reported in Retained Earnings Calculator; • third party in-kind contribution- evidence of receipt of contribution and valuation; • deposits—certificates of deposit agreement; • secondary capital—secondary capital agreement and disclosure and acknowledgement statement; AND • clearly legible documentation that demonstrates actual receipt of the matching funds including the date of the transaction and the amount, such as a copy of a check or a wire transfer statement. • Applicants must provide information on their In-Hand matching funds in the Matching Funds Breakout Table Excel Workbook (refer to Table 10—Required Application Documents) which must be submitted at the time of Application.

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TABLE 9—MATCHING FUNDS REQUIREMENTS—Continued • Although Applicants are not required to provide further documentation for In-Hand matching funds at the time of Application submission, other than for Retained Earnings and Equity Investments, they must be able to provide documentation to the CDFI Fund upon request. Matching funds requirements by The following Applicants must provide evidence of acceptable matching funds: application type. • NACA FA Applicants applying for FA, PPC–FA, and DF–FA (upon request) *; and • HFFI–FA Applicants (upon request).* TA Applicants are not required to provide matching funds. * The matching funds requirement for HFFI–FA and NACA FA applicants was waived in the appropriations bill for FY 2017 and the final FY 2018 appropriations are still pending. HFFI–FA and NACA FA appli- cants are not required to submit matching funds for their award requests at the time of application. How- ever, the CDFI Fund reserves the right to request matching funds from HFFI–FA and NACA FA appli- cants if matching funds are not waived in the final FY 2018 NACA Program appropriation. Amount of required match ...... Applicants must provide evidence of eligible, In-Hand, dollar-for-dollar, non-Federal matching funds for every FA award dollar to be paid by the CDFI Fund. If awarded, Applicants that do not demonstrate 100 percent In-Hand matching funds at the time of Application may experience a longer payment timeline. Determination of award form ...... FA awards will be made in comparable form and value to the eligible In-Hand and/or Committed matching funds documentation submitted by the Applicant. • For example, if an FA Applicant provides documentation of eligible loan matching funds for $200,000 and eligible grant matching funds of $400,000, the CDFI Fund will obligate $200,000 of the FA award as a loan and $400,000 as a grant. • After awards have been announced, Recipients may request the CDFI Fund’s permission to change the form of their award from loan to grant (by producing eligible grant matching funds), but will only be eligi- ble to receive a grant equal to the federal credit subsidy amount associated with the original loan. Appli- cants will also experience delays in payments if requested form of award changes are approved by the CDFI Fund. Matching Funds Window definition • The Applicant must receive eligible In-Hand matching funds between January 1, 2016 and January 15, 2019. • A Recipient must provide the CDFI Fund with all documentation demonstrating the receipt of In-Hand matching funds by January 31, 2019. Matching funds and form of award • Recipients will be approved for a maximum award size of two times the total amount of eligible In-Hand and/or Committed matching funds included in the Application, so long as they do not exceed the max- imum award amount. • The form of the matching funds documented in the Application determines the form of the award. Committed matching funds defini- • Matching funds are Committed when the Applicant has entered into or received a legally binding com- tion. mitment from the matching funds source showing the matching funds will be disbursed to the Applicant at a future date. • The Applicant must be able to provide the CDFI Fund, upon request, acceptable written documentation showing the source, form, and amount of the Committed matching funds (including, in the case of a loan, the terms thereof), as well as the anticipated payment date of the Committed funds. • The Applicant must provide information on their Committed matching funds in the Matching Funds Breakout Table Excel Workbook (refer to Table 10—Required Application Documents) which must be submitted at the time of Application. • Although the Applicant is not required to provide further documentation for Committed matching funds at the time of Application submission, other than for Retained Earnings, they must be able to provide docu- mentation to the CDFI Fund upon request. Limitations on matching funds ...... • Matching funds must be from non-Federal sources. • Applicants cannot proffer matching funds that were accepted as matching funds for a prior FA award under the NACA Program, NACA Program, or under another Federal grant or award program. • Matching funds must comply with Regulations at 12 CFR 1805.500 et seq. • Matching funds must be attributable to at least one of the five eligible FA activities (see Section II.C). Rights of the CDFI Fund ...... • The CDFI Fund reserves the right to contact the matching funds source to discuss the matching funds and the documentation that the Applicant provided if required or requested. • The CDFI Fund may grant an extension of the Matching Funds Window (defined in Table 9), on a case- by-case basis, if the CDFI Fund deems it appropriate. • The CDFI Fund reserves the right to rescind all or a portion of an FA award and re-allocate the re- scinded award amount to other qualified Applicant(s), if a Recipient fails to provide evidence of In-Hand Matching Funds totaling its award amount obtained during the Matching Funds Window. Matching funds in the form of third- • Third party in-kind contributions are non-cash contributions (i.e., property or services) provided by non- party in-kind contributions. Federal third parties to the Applicant. • Third party in-kind contributions will be considered to be in the form of a grant for matching funds pur- poses. • Third party in-kind contributions may be in the form of real property, equipment, supplies, and other ex- pendable property, and the value of goods and services directly benefiting the eligible activities. • For third party in-kind contributions, the fair market value of goods and services must be documented as the grant match. • Applicants will be responsible for documenting the value of all in-kind contributions as described in the Uniform Requirements. Matching funds in the form of a • An FA award made in the form of a loan will have the following standardized terms: loan. i. A 13-year term with semi-annual interest-only payments due in years 1 through 10, and fully amor- tizing payments due each year in years 11 through 13; and ii. A fixed interest rate of 2.24 percent, which was calculated by the CDFI Fund based on the U.S. De- partment of the Treasury’s 10-year Treasury note. • The Applicant’s matching funds loan(s) must:

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TABLE 9—MATCHING FUNDS REQUIREMENTS—Continued i. Have a minimum of a 3-year term (loans presented as matching funds with less than a 3-year term will not qualify as eligible match); and ii. be from a non-Federal source. Severe Constraints Waiver ...... • In the case of an Applicant demonstrating severe constraints on available sources of matching funds, the CDFI Fund, in its sole discretion, may permit such Applicant to comply with the matching funds re- quirements by reducing such requirements by up to 50 percent. • In order to be considered eligible for a Severe Constraints Waiver, an Applicant must meet all of the NACA FA eligibility criteria described in Table 8. Instructions for requesting a Severe Constraints Waiver will be made available if required. • No more than 25 percent of the total funds available for obligation under this funding round may be matched under the Severe Constraints Waiver. Ineligible matching funds ...... • If the CDFI Fund determines that any portion of the Applicant’s matching funds is ineligible, the CDFI Fund will permit the Applicant to offer documentation of alternative matching funds as a substitute for the ineligible matching funds. • In such instances: i. The Applicant must provide acceptable evidence of the alternative matching funds within the period of time specified by the CDFI Fund, and ii. the alternative matching funds will not increase the total amount of FA requested. Use of matching funds from a prior If an Applicant offers matching funds documentation from an organization that was a prior Recipient under CDFI Program Recipient. the CDFI Program or NACA Program, the Applicant must be able to prove to the CDFI Fund’s satisfac- tion that such funds do not consist, in whole or in part, of CDFI Program funds, NACA Program funds, or other Federal funds. Matching funds in the form of re- • Retained earnings are eligible for use as matching funds when the CDFI Fund calculates an amount tained earnings. equal to: i. The increase in retained earnings that occurred over any one of the Applicant’s fiscal years within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award; or ii. the annual average of such increases that occurred over any three consecutive fiscal years of the Applicant with at least one of the fiscal years occurring within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award; or iii. any combination of (i) and (ii) above that does not include matching funds used for an award. • Retained earnings will be matched with an FA award in the form of a grant. • Depository Institution Holding Company Applicants must provide call reports for the Depository Institution Holding Company in order to verify their retained earnings, even if the requested FA award will support its subsidiary bank. Special rule for Insured Credit • An Insured Credit Union’s and Insured Depository Institution’s retained earnings are eligible for use as Unions and Insured Depository matching funds when the CDFI Fund calculates an amount equal to: Institutions. i. The increase in retained earnings that occurred over any one of the Applicant’s fiscal years within the Matching Funds Window, adjusted to remove revenue from Federal sources and matching funds used for an award; or ii. the annual average of such increases that occurred over any three consecutive fiscal years of the Applicant with at least one of the fiscal years occurring within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award; or iii. the entire retained earnings that have been accumulated since the inception of the Applicant, as provided in the Regulations. • If option (iii) is used for Insured Credit Unions, the Applicant must increase its member and/or non-mem- ber shares and/or total loans outstanding by an amount equal to the amount of retained earnings com- mitted as matching funds. • This increase will be measured on a quarterly basis from March 31, 2018; must occur by the end of Year 1 of the Recipient’s Performance Period, as set forth in its Assistance Agreement; and will be based on amounts reported in the Applicant’s National Credit Union Administration (NCUA) form 5300 Call Report. • The CDFI Fund will assess the likelihood of this increase during the Application review process. • An award will not be made to any Applicant that has not demonstrated in the relevant NCUA form 5300 Call Reports that it has increased shares and/or total loans outstanding by at least 25 percent of the requested FA award amount between December 31, 2016, and December 31, 2017. • The matching funds are not In-Hand until the Recipient has increased its member and/or non-mem- ber shares, deposits and/or total loans outstanding by the amount of retained earnings since incep- tion used as matching funds within the time period specified. • If option (iii) is used for Insured Depository Institutions or Depository Institution Holding Companies, the Applicant or its Subsidiary Insured Depository Institution (in the case of a Depository Institution Holding Company) must increase deposits and/or total loans outstanding by an amount equal to the amount of retained earnings committed as matching funds. Depository Institution Holding Company Applicants must use the call reports of the CDFI Subsidiary Insured Depository Institution that the requested FA award will support. • This increase will be measured on a quarterly basis from March 31, 2018; must occur by the end of Year 1 of the Recipient’s Performance Period, as set forth in its Assistance Agreement; and will be based on amounts reported in the Bank Call Report. • The CDFI Fund will assess the likelihood of this increase during the Application review process. • An award will not be made to any Applicant that has not demonstrated in the relevant call reports that it has increased deposits and/or total loans outstanding by at least 25 percent of the requested FA award amount between December 31, 2016, and December 31, 2017.

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TABLE 9—MATCHING FUNDS REQUIREMENTS—Continued • The matching funds are not In-Hand until the Recipient has increased its deposits and/or total loans outstanding by the amount of retained earnings since inception used as matching funds within the time period specified. • All regulated Applicants utilizing the part (iii) Since Inception rule should refer to the Retained Earnings Guidance included in the Matching Funds Breakout Table Excel Workbook found on the CDFI Fund’s website.

IV. Application and Submission B. Content and Form of Application the Application. Information submitted Information Submission: All Applications must be by the Applicant that the CDFI Fund has prepared using the English language, not specifically requested will not be A. Address To Request an Application and calculations must be made in U.S. reviewed or considered as part of the Package: Application materials can be dollars. The following table lists the Application. Information submitted found on the CDFI Fund’s website at required Application documents for the must accurately reflect the Applicant’s www.cdfifund.gov/native. Applicants FY 2018 Funding Round. The CDFI activities. Financial data, portfolio, and may request a paper version of any Fund reserves the right to request and activity information provided in the Application material by contacting the review other pertinent or public Application should only include the CDFI Fund Help Desk at cdfihelp@ information that has not been Applicant’s activities. cdfi.treas.gov. specifically requested in this NOFA or

TABLE 10—REQUIRED APPLICATION DOCUMENTS

Application documents Applicant type Submission format

Active AMIS Account ...... All Applicants ...... AMIS. SF–424 ...... All Applicants ...... Fillable PDF in Grants.gov. NACA Program Application Components: ...... All Applicants ...... AMIS. • Funding Application Detail. • Data, Charts, and Narrative sections as listed in AMIS and outlined in Application materials. DF–FA Application Components: ...... DF–FA Applicants ...... AMIS. • Requested Disability Funds—Financial Assistance —Must submit narrative document to FA Applica- Amount Narratives *. tion in AMIS. * DF–FA Narrative will be provided after FA Applica- tion submission if DF–FA funding request is spec- ified in AMIS. HFFI–FA Application Components: ...... HFFI–FA Applicants ...... AMIS. • Funding Application Detail ...... —Must create new funding application. • Narratives.

ATTACHMENTS TO THE APPLICATION: Add to ‘‘Related Attachments’’ related list in application

Key Staff Resumes ...... All Applicants ...... PDF or Word document in AMIS. Organizational Chart ...... All Applicants ...... PDF in AMIS. Audited Financial Statements For the Applicant’s Three FA Applicants: Loan funds, venture capital funds, and PDF in AMIS. Most Recent Historic Fiscal Years. other non-Insured Depository Institutions. Management Letters for the Applicant’s Most Recent FA Applicants: Loan funds, venture capital funds, and PDF in AMIS. Historic Fiscal Year. other non-Insured Depository Institutions, TA Appli- cants: If available.

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TABLE 10—REQUIRED APPLICATION DOCUMENTS—Continued

Application documents Applicant type Submission format

The Management Letter is prepared by the Applicant’s auditor and is a communication on internal control over financial reporting, compliance, and other mat- ters. The Management Letter contains the auditor’s findings regarding the Applicant’s accounting policies and procedures, internal controls, and operating poli- cies, including any material weaknesses, significant deficiencies, and other matters identified during audit- ing. The Management Letter may include suggestions for improving on identified weaknesses and defi- ciencies and/or best practice suggestions for items that may not be considered to be weaknesses or defi- ciencies. The Management Letter may also include items that are not required to be disclosed in the an- nual Audited Financial Statements. The Management Letter is distinct from the auditor’s Opinion Letter, which is required by Generally Accepted Accounting Principles (GAAP). Management Letters are not re- quired by GAAP, and are sometimes provided by the auditor as a separate letter from the Audit itself. Statement(s) in Lieu of Management Letter for Appli- FA Applicants: Loan funds and other non-Insured De- PDF in AMIS. cant’s Most Recent Historic Fiscal Year Issued from pository Institutions, TA Applicants: If available. Board Treasurer or other Board member using tem- plate provided in application materials. (required only if Management Letters are not available for Audited Financial Statements). Unaudited Financial Statements for Applicant’s Three TA Applicants: Loan funds, venture capital funds, and PDF in AMIS. Most Recent Historic Years (if Audited Financial State- other non-Insured Depository Institutions. ments are not available). Current Year to Date—December 31, 2017 Unaudited FA and TA Applicants: Loan funds, venture capital PDF in AMIS. Financial Statements. funds, and other non-Insured Depository Institutions. Community Partnership Agreement ...... FA Applicants, if applicable ...... PDF or Word document in AMIS. Matching Funds Breakout Table Excel Workbook ...... CDFI Program FA Core Applicants (the CDFI Fund re- Excel in AMIS. serves the right to request matching funds from HFFI–FA and NACA FA applicants if matching funds are not waived in the final FY 2018 NACA Program appropriation). Call Reports for each fiscal year reported in the Re- CDFI Program FA Core Applicants: Insured Depository PDF in AMIS. tained Earnings Calculator. Institutions that are using Retained Earnings as matching funds only (the CDFI Fund reserves the right to request this information from HFFI–FA and NACA FA applicants if matching funds are not waived in the final FY 2018 NACA Program appro- priation). Equity Investment Matching Funds Documentation ...... CDFI Program FA Core Applicants: For-profit CDFIs PDF or Word document in that are using an Equity Investment(s) as matching AMIS. funds only (the CDFI Fund reserves the right to re- quest this information from HFFI–FA and NACA FA applicants if matching funds are not waived in the final FY 2018 NACA Program appropriation).

C. Application Submission: The CDFI application information (listed in Table Applicants without these required Fund has a two-step process that 10) will be submitted through AMIS. numbers should allow for additional requires the submission of application The deadline for submitting the SF–424 time to complete the Grants.gov documents on separate deadlines and is listed in Tables 1 and 11. registration process. The CDFI Fund locations. The SF–424 must be All Applicants must register in the will not extend the application deadline submitted through Grants.gov and all Grants.gov system to successfully to any Applicant that started the other application documents through submit the SF–424. The Grants.gov Grants.gov registration process but did the AMIS portal. The CDFI Fund will registration process can take 30 days or not complete it by the deadline. An not accept Applications via email, mail, longer to complete and the CDFI Fund Applicant that has previously registered facsimile, or other forms of strongly encourages Applicants to start with Grants.gov must verify that its communication, except in extremely the Grants.gov registration process as registration is current and active. rare circumstances that have been pre- soon as possible (refer to the following Applicants should contact Grants.gov approved by the CDFI Fund. Applicants link: http://www.grants.gov/web/grants/ directly with questions related to the are only required to submit the OMB register.html). Since the Grants.gov registration or submission process as the SF–424, Application for Federal registration process requires Applicants CDFI Fund does not maintain the Assistance form in Grants.gov. All other to have DUNS and EIN numbers, Grants.gov system. Each Application

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must be signed by a designated (DUNS) number. Applicants without a current and active. Each Applicant must Authorized Representative in AMIS DUNS number will not be able to continue to maintain an active SAM before it can be submitted. Applicants register and submit an Application in registration with current information at must ensure that an Authorized the Grants.gov system. Allow sufficient all times during which it has an active Representative is authorized to sign time for Dun & Bradstreet to respond to Federal award or an Application under legal documents on behalf of the inquiries and/or requests for DUNS consideration by a Federal awarding organization. Consultants working on numbers. agency. The CDFI Fund will not behalf of the organization cannot be E. System for Award Management consider any Applicant that fails to designated as Authorized (SAM): Any entity applying for Federal properly register or activate its SAM grants or other forms of Federal Representatives. Only a designated account and, as a result, is unable to financial assistance through Grants.gov Authorized Representative or submit the SF–424 in Grants.gov or Application Point of Contact, included must be registered in SAM before Application in AMIS by the applicable in the Application, may submit the submitting its Application. Registration Application deadlines. These Application in AMIS. If an Authorized in SAM is required as part of the Representative or Application Point of Grants.gov registration process. The restrictions also apply to organizations Contact does not submit the application, SAM registration process can take two that have not yet received a DUNS or the application will be deemed weeks or longer to complete. Applicants EIN number. Applicants must contact ineligible. without DUNS and/or EIN numbers SAM directly with questions related to D. Dun & Bradstreet Universal should allow for additional time as an registration or SAM account changes as Numbering System (DUNS): Pursuant to Applicant cannot register in SAM the CDFI Fund does not maintain this the Uniform Requirements, each without those required numbers. system and has no ability to make Applicant must provide as part of its Applicants that have previously changes or correct errors of any kind. Application submission, a Dun and completed the SAM registration process For more information about SAM, visit Bradstreet Universal Numbering System must verify that their SAM accounts are https://www.sam.gov.

TABLE 11—GRANTS.GOV REGISTRATION TIMELINE SUMMARY

Estimated minimum Step Agency time to complete

Obtain a DUNS number ...... Dun & Bradstreet ...... One (1) Week .* Obtain an EIN Number ...... Internal Revenue Service (IRS) ...... Two (2) Weeks .* Register in SAM.gov ...... System for Award Management (SAM.gov) ...... Two (2) Weeks .* Register in Grants.gov ...... Grants.gov ...... One (1) Week .* * * Applicants are advised that the stated durations are estimates only and represent minimum timeframes. Actual timeframes may take longer. The CDFI Fund will not consider any Applicant that fails to properly register or activate its SAM account, has not yet received a DUNS or EIN number, and/or fails to properly register in Grants.gov. * * This estimate assumes an Applicant has a DUNS number, an EIN number, and is already registered in SAM.gov.

F. Submission Dates and Times: deadlines for the FY 2018 Funding 1. Submission Deadlines: The Round. following table provides the critical

TABLE 12—FY 2018 FUNDING ROUND CRITICAL DEADLINES FOR APPLICANTS

Description Deadline Time (ET) Submission method

Last day to contact Certification, Compliance February 28, 2018 ...... 11:59 p.m...... Service Request via AMIS. Monitoring and Evaluation (CCME) staff re- garding CDFI Certification. CDFI certification applications ...... March 2, 2018 ...... 11:59 p.m...... Electronically via AMIS Create AMIS Account (New Applicants) ...... March 2, 2018 ...... AMIS. SF424 (Application for Federal Assistance) .... March 2, 2018 ...... 11:59 p.m...... Electronically via Grants.gov. Last day to contact NACA Program staff ...... April 2, 2018 ...... 5:00 p.m...... Service Request via AMIS Or CDFI Fund Helpdesk: 202–653–0421. NACA Program Application for FA or TA ...... April 4, 2018 ...... 11:59 p.m...... Electronically via AMIS.

2. Confirmation of Application submit the SF–424 on an earlier the submission has entered the Submission in Grants.gov and AMIS: deadline from the other required Grants.gov system. This email will Applicants are required to submit the application materials in AMIS. If the contain a tracking number for the OMB SF–424, Application for Federal SF–424 is not successfully accepted by submitted SF–424. Within 48 hours, the Assistance through the Grants.gov Grants.gov by the deadline, the CDFI Applicant will receive a second email, system, under the NACA Program Fund will not review any of the material which will indicate if the submitted Funding Opportunity Number. All other submitted in AMIS, and the Application SF–424 was either successfully required application materials must be will be deemed ineligible. validated or rejected with errors. submitted through the AMIS website. a. Grants.gov Submission Information: However, Applicants should not rely on Application materials submitted Each Applicant will receive an email the email notification from Grants.gov to through both systems are due by the from Grants.gov immediately after confirm that their SF–424 was applicable deadlines. Applicants must submitting the SF–424 confirming that validated. Applicants are strongly

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encouraged to use the tracking number technological error. The CDFI Fund will described in Section II.(C)(5) of this provided in the first email to closely not consider a late submission of the NOFA and its Assistance Agreement. monitor the status of their SF–424 by SF–424 or the Application that was a b. A Recipient may not distribute contacting the helpdesk at Grants.gov direct result of a delay in a Federal PPC–FA funds to an Affiliate, directly. The Application material Government process, unless such delay Subsidiary, or any other entity, without submitted in AMIS is not officially was the result of a Federal government the CDFI Fund’s prior written approval. accepted by the CDFI Fund until administrative or technological error. c. PPC–FA funds shall only be paid to Grants.gov has validated the SF–424. a. SF–424 Late Submission: In cases the Recipient. b. AMIS Submission Information: where a Federal government d. The CDFI Fund, in its sole AMIS is a web-based portal where administrative or technological error discretion, may pay PPC–FA funds in Applicants will directly enter their directly resulted in a late submission of amounts, or under terms and application information and add the the SF–424, the Applicant must submit conditions, which are different from required attachments listed in Table 10. a written request for acceptance of late those requested by an Applicant. AMIS will verify that the Applicant SF–424 submission and include e. The Recipient must comply, as provided the minimum information documentation of the error no later than applicable, with the Buy American Act required to submit an Application. two business days after the SF–424 of 1933, 41 U.S.C. 8301–8303, with Applicants are responsible for the deadline. The CDFI Fund will not respect to any Direct Costs. quality and accuracy of the information respond to request for acceptance of late 3. DF–FA awards: and attachments included in the SF–424 submissions after that time a. A Recipient shall use DF–FA funds Application submitted in AMIS. The period. Applicants must submit late SF– only for the eligible activities described CDFI Fund strongly encourages the 424 submission requests to the CDFI in Section II.(C)(2) of this NOFA and its Applicant to allow sufficient time to Fund via an AMIS service request to the Assistance Agreement. confirm the Application content, review CDFI Program with a subject line of b. A Recipient may not distribute DF– the material submitted, and remedy any ‘‘Late SF–424 Submission Request.’’ FA funds to an Affiliate, Subsidiary, or issues prior to the Application deadline. b. Application Late Submission: In any other entity, without the CDFI Each Application must be signed by an cases where a Federal government Fund’s prior written approval. Authorized Representative in AMIS administrative or technological error c. DF–FA funds shall only be paid to before it can be submitted. Applicants directly resulted in a late submission of the Recipient. must ensure that an Authorized the Application in AMIS, the Applicant d. The CDFI Fund, in its sole Representative is authorized to sign must submit a written request for discretion, may pay DF–FA funds in legal documents on behalf of the acceptance of late Application amounts, or under terms and organization. Consultants working on submission and include documentation conditions, which are different from behalf of the organization may not be of the error no later than two business those requested by an Applicant. designated as Authorized days after the Application deadline. The e. The Recipient must comply, as Representatives. Only an Authorized CDFI Fund will not respond to request applicable, with the Buy American Act Representative or an Application Point for acceptance of late Application of 1933, 41 U.S.C. 8301–8303, with of Contact can submit the Application. submissions after that time period. respect to any Direct Costs. If an Authorized Representative or Applicants must submit late 2. HFFI–FA awards: Application Point of Contact does not Application submission requests to the a. A Recipient shall use HFFI–FA submit the application, the application CDFI Fund via an AMIS service request funds only for the eligible activities will be deemed ineligible. Applicants to the NACA Program with a subject described in Section II.(C)(4) of this can only submit one Application. Upon line of ‘‘Late Application Submission NOFA and its Assistance Agreement. submission, the Application will be Request.’’ b. A Recipient may not distribute locked and cannot be resubmitted, G. Funding Restrictions: FA, PPC–FA, HFFI–FA funds to an Affiliate, edited, or modified in any way. The DF–FA, HFFI–FA and TA awards are Subsidiary, or any other entity, without CDFI Fund will not unlock or allow limited by the following: the CDFI Fund’s prior written approval. multiple Application submissions. 1. FA awards: c. HFFI–FA funds shall only be paid 3. Late Submission: The CDFI Fund a. A Recipient shall use FA funds to the Recipient. will not accept an Application if the only for the eligible activities described d. The CDFI Fund, in its sole SF–424 is not submitted and accepted in Section II.(C)(1) of this NOFA and its discretion, may pay HFFI–FA funds in by Grants.gov by the deadline. Assistance Agreement. amounts, or under terms and Additionally, the CDFI Fund will not b. A Recipient may not distribute FA conditions, which are different from accept an Application if it is not signed funds to an Affiliate, Subsidiary, or any those requested by an Applicant. by an Authorized Representative and other entity, without the CDFI Fund’s e. The Recipient must comply, as submitted in AMIS by the deadline. In prior written approval. applicable, with the Buy American Act either case, the CDFI Fund will not c. FA funds shall only be paid to the of 1933, 41 U.S.C. 8301–8303, with review any material submitted, and the Recipient. respect to any Direct Costs. Application will be deemed ineligible. d. The CDFI Fund, in its sole 3. TA grants: However, in cases where a Federal discretion, may pay FA funds in a. A Recipient shall use TA funds government administrative or amounts, or under terms and only for the eligible activities described technological error directly resulted in a conditions, which are different from in Section II.(C)(3) of this NOFA and its late submission of the SF–424 or the those requested by an Applicant. Assistance Agreement. Application, Applicants are provided e. The Recipient must comply, as b. A Sponsoring Entity award two opportunities to submit a written applicable, with the Buy American Act Recipient must create, as a legal entity, request for acceptance of late of 1933, 41 U.S.C. 8301–8303, with the Emerging CDFI no later than the end submissions. The CDFI Fund does not respect to any Direct Costs. of the first year of the period of consider a delay in any Federal 2. PPC–FA awards: performance, whereupon the government process to constitute a a. A Recipient shall use PPC–FA Sponsoring Entity must request the Federal government administrative or funds only for the eligible activities CDFI Fund to amend the Assistance

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Agreement and add the Emerging CDFI below. Applicants that meet the For the compliance analysis, the CDFI as a co-Recipient thereto, with the minimum criteria will advance to the Fund will evaluate the compliance risk Sponsoring Entity, thereby transferring next step in the review process. of each Application using information any and all remaining balances and/or Applicants applying as a Community provided in the Application. Each assets derived from the TA award to the Partnership must describe partnership Application will receive a Total Emerging CDFI. in the Application pursuant to the Compliance Composite Score on a scale c. A Recipient may not distribute TA requirements set forth in Table 8 and of one (1) to five (5), with one (1) being funds to an Affiliate, Subsidiary or any will be evaluated in accordance with the the highest rating. Applicants must other entity, without the CDFI Fund’s review process described below. receive a Total Compliance Composite prior written consent. a. Step 1: Eligibility Review: The CDFI Score of one (1), two (2), or three (3) to d. TA funds shall only be paid to the advance to Step 3. Applicants that Recipient. Fund will evaluate each Application to determine its eligibility status per receive an initial Total Compliance e. The CDFI Fund, in its sole Composite Score of four (4) or five (5) discretion, may pay TA funds in Section III. Eligibility Information of this NOFA. will be re-evaluated and re-scored by amounts, or under terms and CDFI Fund Staff. If the Total conditions, which are different from b. Step 2: Financial Analysis and Compliance Composite Score remains those requested by an Applicant. Compliance Evaluation: Step 2 contains four (4) or five (5) after CDFI Staff f. The Recipient must comply, as two main components: Financial health review, the Applicant will not advance applicable, with the Buy American Act analysis and compliance risk to Step 3. of 1933, 41 U.S.C. 8301–8303, with evaluation. The CDFI Fund will c. Step 3: Business Plan Review: respect to any Direct Costs. evaluate the financial health and Applicants that proceed to Step 3 will V. Application Review Information viability of each Application using be evaluated on the soundness of each financial information provided by the A. Criteria: If the Applicant has Applicant’s comprehensive business Applicant. The CDFI Fund will also plan. Two external non-CDFI Fund submitted an eligible Application, the evaluate the compliance risk of each CDFI Fund will conduct a substantive Reviewers will conduct the Step 3 Application using information provided evaluation. Reviewers will evaluate the review in accordance with the criteria in the Application. and procedures described in the Application sections listed in Table 13. Regulations, this NOFA, the Application For the financial health analysis, each All Applications will be reviewed in guidance, and the Uniform Application will receive a Total accordance with standard reviewer Requirements. The CDFI Fund reserves Financial Composite Score on a scale of evaluation materials for the business the right to contact the Applicant by one (1) to five (5), with one (1) being the plan review. Applications will be telephone, email, or mail for the highest rating. The Total Financial ranked based on Total Business Plan purpose of clarifying or confirming Composite Score is based on the Scores, in descending order. In order to Application information. If contacted, analysis of twenty-four (24) financial advance to Step 4, Applicants must the Applicant must respond within the indicators. Applications will be grouped receive a Total Business Plan Score that time period communicated by the CDFI based on the Total Financial Composite is either (1) equal to receiving a point Fund or risk that its Application will be Score. Applicants must receive a Total score equivalent to a ‘‘Good’’ out of a rejected. The CDFI Fund will review the Financial Composite Score of one (1), ranking scale in descending order of FA, DF–FA, PPC–FA, HFFI–FA, and TA two (2), or three (3) to advance to Step Excellent, Good, Fair, Limited or Poor, Applications according the below 3. Applicants that receive an initial in each section listed in Table 13 or (2) process. Total Financial Composite Score of four within the top 70 percent of the NACA 1. Financial Assistance (FA) (4) or five (5) will be re-evaluated and FA applicant pool, whichever is greater. Application Scoring, Award Selection, re-scored by CDFI Fund staff. If the In the case of tied Total Business Plan Review, and Selection Process: The Total Financial Composite Score Scores that would prevent an Applicant CDFI Fund will evaluate each remains four (4) or five (5) after CDFI from moving to Step 4, all Applicants Application using a five step review Fund staff review, the Applicant will with the same score will progress to process illustrated in the sections not advance to Step 3. Step 4.

TABLE 13—STEP 3: FA BUSINESS PLAN REVIEW SCORING CRITERIA

FA application sections Possible score Score needed to advance

Executive Summary ...... Not Scored ...... N/A. Business Strategy ...... 12 ...... N/A. Market and Competitive Analysis ...... 7 ...... N/A. Products and Services ...... 12 ...... N/A. Management and Track Record ...... 12 ...... N/A. Growth and Projections ...... 7 ...... N/A.

Total Business Plan Score ...... 50 ...... NACA FA Applicants: Within Top 70 percent of all NACA Applicant Step 3 Scores.

d. Step 4: Policy Objective Review: evaluation are listed in Table 14 below. Federal awards (including timeliness of The CDFI Fund internal reviewers will The CDFI Fund also conducts a due reporting and compliance); reports and evaluate each Application to determine diligence review for Applications that findings from audits; and the its ability to meet policy objectives of includes an analysis of programmatic Applicant’s ability to effectively the CDFI Fund authorizing statute. The risk factors including, but not limited to: implement Federal requirements, which policy objectives considered in this History of performance in managing could impact the Total Policy Objective

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Review Score. Each Applicant will be Objective Review Composite Score on a then grouped according to Total Policy evaluated in each of the categories, scale of one (1) to five (5), with one (1) Objective Review Scores. which will result in a Total Policy being the highest score. Applicants are

TABLE 14—STEP 4: FA POLICY REVIEW SCORING CRITERIA

Score needed to Section Possible scores High score advance

Economic Distress ...... 1, 2, 3, 4, or 5 ...... 1 N/A. Economic Opportunities ...... 1, 2, 3, 4, or 5 ...... 1 N/A. Partnerships ...... 1, 2, 3, 4, or 5 ...... 1 N/A.

Total Policy Objective Review Composite Score ...... 1, 2, 3, 4, or 5 ...... 1 All Scores Advance.

e. Step 5: Award Amount reviewers will evaluate each HFFI–FA not limited to, financial stability, quality Determination: The CDFI Fund Application associated with a FA of management systems and ability to determines an award amount for each application that progresses to Step 4 of meet award management standards, Application based on the Step 4 Total the FA Application review process. history of performance in managing Policy Objective Review Score, the Reviewers will evaluate the Application Federal awards (including timeliness of Applicant’s request amount, and on sections listed in Table 15 and assign a reporting and compliance), reports and certain variables, including but not Total HFFI–FA Score up to 25 points. findings from audits, and the limited to, an Applicant’s deployment All Applications will be reviewed in Applicant’s ability to effectively track record, minimum award size, and accordance with standard reviewer implement Federal requirements. funding availability. Award amounts evaluation materials. Applications will Award amounts may be reduced from may be reduced from the requested be ranked based on total scores, in the requested award amount as a result award amount as a result of this descending order. Applicants that fail to of this analysis. The CDFI Fund may analysis. Lastly, the CDFI Fund may receive an FA award will not be reduce awards sizes from requested consider the geographic diversity of considered for a HFFI–FA award. amounts based on certain variables, Applicants when making its funding The CDFI Fund conducts additional including an Applicant’s loan decisions. levels of due diligence for Applications disbursement activity, total portfolio 2. Healthy Food Financing Initiative- that are in scoring contention for an outstanding, and similar factors. Lastly, FA (HFFI–FA) Application Scoring, HFFI–FA award. This due diligence the CDFI Fund may consider the Award Selection, Review, and Selection includes an analysis of programmatic geographic diversity of Applicants when Process: Two external non-CDFI Fund and financial risk factors including, but making its funding decisions.

TABLE 15—STEP 3 HFFI–FA APPLICATION SCORING CRITERIA

HFFI–FA HFFI–FA narrative sections Applicants (points)

HFFI Target Market Profile ...... 4 Healthy Food Financial Products ...... 5 Healthy Food Development Services ...... 2 Projected HFFI–FA Activities ...... 7 HFFI Track Record, Management Capacity for Providing Healthy Food Financing, Healthy Food Financing Outcomes ...... 7

Total HFFI–FA Score ...... 25

3. Persistent Poverty Counties— Applicants that have received prior reviewer evaluation materials. Financial Assistance (PPC–FA) awards from the CDFI Fund, minimum Applicants that fail to receive an FA Application Scoring, Award Selection, award size, and funding availability. award will not be considered for a DF– Review, and Selection Process: 4. Disability Funds-Financial FA award. Award amounts will be Application requests for PPC–FA Assistance (DF–FA) Application determined on the basis of the Total awards are not scored. A CDFI Fund Scoring, Award Selection, Review, and DF–FA Score, the Applicant’s requested internal reviewer will evaluate the PPC– Selection Process: A CDFI Fund internal amount, and on certain variables, FA request of each associated FA reviewer will evaluate each DF–FA including but not limited to, an Applicant that has advanced to the Step Application associated with a FA Applicant’s deployment track record, 4 review process. PPC–FA award application progresses to Step 4 of the minimum award size, and funding amounts will be determined based on FA Application review process. The availability. The CDFI Fund will make the total number of eligible Applicants reviewer will evaluate the Application awards to the highest scoring applicants and funding availability, the Applicant’s and assign a Total DF–FA Score on a first. Award amounts may be reduced requested amount, and on certain scale of one (1) to five (5), with one (1) from the requested award amount as a variables, including but not limited to, being the highest score. Applicants are result of this analysis. The DF–FA an Applicant’s deployment track record, then grouped according to Total DF–FA award is evaluated independently from historical track record of deployment in Score. All Applications will be the FA award and will not affect the FA Persistent Poverty Counties for reviewed in accordance with standard award evaluation or size.

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TABLE 16—STEP 3 DF–FA APPLICATION SCORING CRITERIA

Section Possible scores High score

DF–FA Narrative Questions ...... 1, 2, 3, 4, or 5 1

Total DF–FA Score ...... 1, 2, 3, 4, or 5 1

5. Technical Assistance (TA) Applicants must achieve a minimum Emerging CDFI and Certifiable CDFI Application Scoring, Award Selection, score of 35 points in Section I to be will also be evaluated on its Review, and Selection Process: The considered for an award and to be demonstrated need for TA funding to CDFI Fund will evaluate each reviewed in Section II. build the CDFI’s capacity and further its Application to determine its eligibility An Applicant that is a Certified CDFI strategic goals. An Applicant that is a pursuant to Section III. Eligibility will be evaluated on the demonstrated Sponsoring Entity will be rated on the Information of this NOFA. If the need for TA funding to build the CDFI’s Applicant’s demonstrated capability to Application meets the eligibility capacity, further the Applicant’s create a separate legal entity within one strategic goals, and achieve impact criteria, the CDFI Fund will evaluate year that will achieve CDFI certification within the Applicant’s Target Market. each TA Application using standard within four years. An Applicant that is An Applicant that is an Emerging CDFI a Sponsoring Entity will also be rated on scoring criteria in the Business Plan or Certifiable CDFI will be evaluated on its demonstrated need for TA funding to Review (Table 17). An Applicant must the Applicant’s demonstrated capability receive a minimum Total TA Business and plan to achieve CDFI certification build the CDFI’s capacity and further its Plan Score of 50 points for the TA within three years, or if a prior awardee, strategic goals. components in order to be considered the certification performance goal and The CDFI Fund will score each part for an award. Sponsoring Entity, measure stated in its prior Assistance of the TA Business Plan Review as Emerging CDFI or Certifiable CDFI Agreement. An Applicant that is an indicated in Table 17.

TABLE 17—TA BUSINESS PLAN REVIEW SCORING CRITERIA

Emerging CDFI or TA application sections certifiable CDFI Certified CDFI (points) (points)

Section I: Primary Mission ...... 15 N/A Financing Entity ...... 15 N/A Target Market ...... 15 N/A Accountability ...... 15 N/A Development Services ...... 15 N/A Section II: Organization Overview ...... 5 20 Management and Staff ...... 5 20 Community Coordination ...... 5 20 Financial Performance ...... 5 20 Organizational Impact ...... 5 20

Total TA Business Plan Score ...... 100 100

Each TA Application will be Applicants will be ranked first addition to consideration of the evaluated by one internal CDFI Fund according to the total Section I score. eligibility of an Applicant’s funding reviewer. Internal reviewers must The CDFI Fund conducts additional request and similar factors. Lastly, the complete the CDFI Fund’s conflict of levels of due diligence for Applications CDFI Fund may consider the geographic interest process. The CDFI Fund’s that are in scoring contention for an diversity of Applicants when making its application conflict of interest policy is award. This due diligence includes an funding decisions. located on the CDFI Fund’s website. All analysis of programmatic and financial 6. Insured Depository Institutions: The Applications will be reviewed in risk factors including, but not limited to, CDFI Fund will consider safety and accordance with CDFI Fund standard financial stability, history of soundness information from the reviewer evaluation materials for the performance in managing Federal Appropriate Federal or State Banking Business Plan Review. Applications will awards (including timeliness of Agency. If the Applicant is a CDFI be ranked based on Total TA Business reporting and compliance), reports and Depository Institution Holding Plan Score, in descending order. In the findings from audits, and the Company, the CDFI Fund will consider case of tied scores that would prohibit Applicant’s ability to effectively information provided by the the Application from progressing to the implement Federal requirements. The Appropriate Federal or State Banking next level of review, Certified CDFI Fund will also evaluate the Agencies about both the CDFI Applicants will be ranked first Applicant’s ability to meet certification Depository Institution Holding according to each Organization criteria of being a legal entity and a non- Company and the Subsidiary CDFI Overview score and Emerging CDFI, government entity. Award amounts may Certified Insured Depository Institution Certifiable CDFI, and Sponsoring Entity be reduced as a result of this analysis in that will expend and carry out the

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award. If the Appropriate Federal or interest process and be approved by the an initial payment of FA or TA may be State Agency identifies safety and CDFI Fund. The CDFI Fund’s made. FA Recipients that are subject to soundness concerns, the CDFI Fund will application reader conflict of interest the matching funds requirement will not assess whether the concerns cause or policy is located on the CDFI Fund’s receive a payment until 100 percent of will cause the Applicant to be incapable website. their matching funds are In-Hand. The of undertaking the activities for which VI. Federal Award Administration first payment is the estimated amount of funding has been requested. Information award that the Recipient states in its 7. Non-Regulated Institutions: In Application that it will use for eligible accordance with the NACA Program’s A. Award Notification: Each FA or TA activities in the first 12 authorizing statute and regulations, the successful Applicant will receive an months after the award. The CDFI Fund CDFI Fund must ensure, to the email ‘‘notice of award’’ notification reserves the right to increase the first maximum extent practicable, that from the CDFI Fund stating that its payment amount on any award to recipients which are non-regulated Application has been approved for an ensure that any subsequent payments CDFIs are financially and managerially award. Each Applicant not selected for are greater than $25,000 for FA and sound, and maintain appropriate an award will receive an email stating $5,000 for TA awards. internal controls (12 U.S.C. 4707(f)(1)(A) that a debriefing notice has been and 12 CFR 1805.800(b)). Further, the provided in its AMIS account. The CDFI Fund will minimize the CDFI Fund must determine that an B. Assistance Agreement: Each time between the Recipient incurring Applicant’s capacity to operate as a Applicant selected to receive an award costs for eligible activities and award CDFI and its continued viability will not must enter into an Assistance payment in accordance with the be dependent upon assistance from the Agreement with the CDFI Fund in order Uniform Requirements. The advanced CDFI Fund (12 U.S.C. 4704(b)(2)(A)). If to receive a payment(s). The Assistance payments for eligible activities will it is determined the Applicant is Agreement will set forth the award’s occur no more than one year in advance incapable of meeting these terms and conditions, including but not of the Recipient incurring costs for the requirements, the CDFI Fund reserves be limited to the: (i) Award amount; (ii) eligible activities. Following the initial the right to deem the Applicant award type; (iii) award uses; (iv) eligible closing, there may be subsequent ineligible or terminate the award. use of funds; (v) performance goals and closings involving additional award B. Anticipated Award Announcement: measures; and (vi) reporting payments. Any documentation in The CDFI Fund anticipates making the requirements. FA Assistance addition to the Assistant Agreement that NACA Program award announcements Agreements have three-year periods of is connected with such subsequent after September 10, 2018 and before performance. TA Assistance Agreements closings and payments shall be properly September 30, 2018. have two-year periods of performance executed and timely delivered by the C. Application Rejection: The CDFI for Certified CDFIs, three-year periods of Recipient to the CDFI Fund. Fund reserves the right to reject an performance for Emerging CDFIs or 3. Requirements Prior to Entering into Application if information (including Certifiable CDFIs, and four-year periods an Assistance Agreement: If, prior to administrative errors) comes to the CDFI of performance for Sponsoring Entity entering into an Assistance Agreement, Fund’s attention that: Adversely affects TA Recipients. Upon creation of the information (including administrative an Applicant’s eligibility for an award; Emerging CDFI, the Sponsoring Entity errors) comes to the CDFI Fund’s adversely affects the Recipient’s will request the CDFI Fund to amend attention that: Adversely affects the certification as a CDFI (to the extent that the Assistance Agreement and add the Recipient’s eligibility for an award; the award is conditional upon CDFI Emerging CDFI as a party thereto; the adversely affects the Recipient’s certification); adversely affects the CDFI Emerging CDFI, as co-awardee, must certification as a CDFI (to the extent that Fund’s evaluation or scoring of an comply with all of the requirements in the award is conditional upon CDFI Application; or indicates fraud or the Assistance Agreement, including all certification); adversely affects the CDFI mismanagement on the Applicant’s part. program goals and measures. If the CDFI Fund determines any 1. Certificate of Good Standing: All Fund’s evaluation of the Application; portion of the Application is incorrect FA and TA Recipients that are not indicates that the Recipient is not in in a material respect, the CDFI Fund Insured Depository Institutions will be compliance with any requirement listed reserves the right, in its sole discretion, required to provide the CDFI Fund with the Uniform Requirements; or indicates to reject the Application. The CDFI a certificate of good standing from the fraud or mismanagement on the Fund reserves the right to change its secretary of state for the Recipient’s Recipient’s part, the CDFI Fund may, in eligibility and evaluation criteria and jurisdiction of formation prior to its discretion and without advance procedures, if the CDFI Fund deems it closing. This certificate can often be notice to the Recipient, terminate the appropriate. If the changes materially acquired online on the secretary of state award or take such other actions as it affect the CDFI Fund’s award decisions, website for the Recipient’s jurisdiction deems appropriate. The CDFI Fund the CDFI Fund will provide information of formation and must generally be reserves the right, in its sole discretion, about the changes through its website. dated within 180 days prior to the date to rescind an award if the Recipient fails The CDFI Fund’s award decisions are the Recipient executes the Assistance to return the Assistance Agreement, final, and there is no right to appeal the Agreement. Due to potential backlogs in signed by the authorized representative decisions. state government offices, Applicants are of the Recipient, and/or provide the D. External Non-CDFI Fund advised to submit requests for CDFI Fund with any other requested Reviewers: All external non-CDFI Fund certificates of good standing no later documentation, within the CDFI Fund’s reviewers are selected based on criteria than 60 days after they submit their deadlines. that includes a professional background Applications. In addition, the CDFI Fund reserves in community and economic 2. Closing: Pursuant to the Assistance the right, in its sole discretion, to development finance, and experience Agreement, there will be an initial terminate and rescind the Assistance reviewing the financial statements of all closing at which point the Assistance Agreement and the award made under CDFI institution types. Reviewers must Agreement and related documents will this NOFA pending the criteria complete the CDFI Fund’s conflict of be properly executed and delivered, and described in the following table:

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TABLE 18—REQUIREMENTS PRIOR TO EXECUTING AN ASSISTANCE AGREEMENT

Requirement Criteria

Failure to meet reporting requirements • If a Recipient received a prior award under any CDFI Fund program and is not current with the re- porting requirements of the previously executed agreement(s), the CDFI Fund may delay entering into an Assistance Agreement or disbursing an award until reporting requirements are met. • If such a Recipient is unable to meet the requirement within the timeframe specified, the CDFI Fund may terminate and rescind the Assistance Agreement and the award made under this NOFA. • The automated systems the CDFI Fund uses only acknowledge a report’s receipt and it not a deter- mination of meeting reporting requirements. Failure to maintain CDFI Certification .. • An FA Recipient must be a Certified CDFI prior to entering into an Assistance Agreement. • If an FA Recipient fails to maintain CDFI Certification, the CDFI Fund will terminate and rescind the Assistance Agreement and the award made under this NOFA. Pending resolution of noncompliance .. • The CDFI Fund will delay entering into an Assistance Agreement with a Recipient that has pending noncompliance issues with any of its previously executed CDFI award agreement(s), if the CDFI Fund has not yet made a final compliance determination. • If the Recipient is unable to satisfactorily resolve the compliance issues, the CDFI Fund may termi- nate and rescind the Assistance Agreement and the award made under this NOFA. Noncompliance status ...... • If, at any time prior to entering into an Assistance Agreement, the CDFI Fund determines that a Re- cipient is noncompliant with any previously executed CDFI award agreement(s) and the CDFI Fund has provided written notification that the Recipient is ineligible to apply for or receive any future awards or allocations for a time period specified by the CDFI Fund in writing, the CDFI Fund may delay entering into an Assistance Agreement until the Recipient has cured the default by taking ac- tions the CDFI Fund has specified within the specified timeframe. If the Recipient is unable to meet the cure requirement within the specified timeframe, the CDFI Fund may terminate and rescind the Assistance Agreement and the award made under this NOFA. Compliance with Federal civil rights re- • If prior to entering into an Assistance Agreement under this NOFA, the Recipient receives a final de- quirements. termination, made within the last three years, in any proceeding instituted against the Recipient in, by, or before any court, governmental, or administrative body or agency, declaring that the Recipient has violated the following laws: Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C.§ 2000d); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794); the Age Discrimina- tion Act of 1975, (42 U.S.C. §§ 6101–6107), and Executive Order 13166, Improving Access to Serv- ices for Persons with Limited English Proficiency, the CDFI Fund will terminate and rescind the As- sistance Agreement and the award made under this NOFA. Do Not Pay ...... • The Do Not Pay Business Center was developed to support Federal agencies in their efforts to re- duce the number of improper payments made through programs funded by the Federal government. • The CDFI Fund reserves the right, in its sole discretion, to rescind an award if the Recipient is identi- fied as an ineligible recipient in the Do Not Pay database. Safety and soundness ...... • If it is determined the Recipient is, or will be, incapable of meeting its award obligations, the CDFI Fund will deem the Recipient to be ineligible, or require it to improve safety and soundness condi- tions prior to entering into an Assistance Agreement.

C. Reporting performance, the CDFI Fund may collect including, but not limited to, an Annual 1. Reporting requirements: On an information from each Recipient Report with the following components: annual basis for the period of

TABLE 19—ANNUAL REPORTING REQUIREMENTS

Financial Statement Audit Report A Non-profit Recipient must submit a Financial Statement Audit (FSA) report in AMIS, along with the (Non-profit Recipient). Recipient’s statement of financial condition audited or reviewed by an independent certified public ac- countant, if any are prepared. Under no circumstances should this be construed as the CDFI Fund requiring the Recipient to conduct or arrange for additional audits not otherwise required under Uniform Requirements or otherwise pre- pared at the request of the Recipient or parties other than the CDFI Fund. Financial Statement Audit Report (For- For-profit Recipients must submit a Financial Statement Audit report in AMIS, along with a statement of Profit Recipient). financial condition audited or reviewed by an independent certified public accountant. Single Audit Report (if applicable) (or If a Recipient is required to complete a Single Audit Report, it should be submitted to the Federal Audit similar report). Clearinghouse (see 2 C.F.R. Subpart F-Audit Requirements in the Uniform Requirements) and AMIS (optional). For-profit Recipients are required to complete and submit a similar report directly to the CDFI Fund. Institution Level Report (ILR) ...... The ILR is a report used to collect compliance and performance data from CDFI Fund Recipients. The ILR is submitted through AMIS and captures organizational information, financial position, lending and investing activities, community development outputs, and development services. • A CDFI Subsidiary Insured Depository Institution that receives a transfer of any portion of an FA award from a CDFI Depository Institution Holding Company Recipient must also submit an ILR. Transaction Level Report (TLR) ...... The TLR is a report used to collect compliance and performance data from CDFI Fund Recipients. The TLR is submitted through AMIS and captures data on each individual loan and investment in the Re- cipient’s portfolio. • A CDFI Subsidiary Insured Depository Institutions that receives a transfer of any portion of an FA award from a CDFI Depository Institution Holding Company Recipient must also submit a TLR. • The TLR is not required for TA Recipients.

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TABLE 19—ANNUAL REPORTING REQUIREMENTS—Continued Federal Financial Report/OMB Stand- If the Recipient receives a TA award, it must submit the Federal Financial Report/ OMB Standard Form ard Form 425. 425 via AMIS. Uses of Award Report ...... If the Recipient receives an FA or TA award, it must submit the Uses of Award Report via AMIS. Shareholders Report ...... If the Assistance is in the form of an Equity Investment, the Recipient must submit shareholder informa- tion to the CDFI Fund showing the class, series, number of shares and valuation of capital stock held or to be held by each shareholder. The Shareholder Report must be submitted for as long as the CDFI Fund is an equity holder. Performance Progress Report ...... If the Recipient receives an FA or TA award, it must submit information on the status of compliance with the performance goals and measures via AMIS.

Each Recipient is responsible for the Recipients to maintain financial not in compliance; and safeguard timely and complete submission of the management and accounting systems personally identifiable information. Annual Reporting requirements. that comply with Federal statutes, Sponsoring Entities with co-awardees regulations, and the terms and VII. Agency Contacts will be informed of any reporting shifts conditions of the Federal award. These A. The CDFI Fund will respond to at the time the Emerging CDFI is systems must be sufficient to permit the questions concerning this NOFA and adjoined to the Agreement. The CDFI preparation of reports required by the Application between the hours of Fund reserves the right to contact the general and program specific terms and 9:00 a.m. and 5:00 p.m. Eastern Time, Recipient and additional entities or conditions, including the tracing of signatories to the Assistance Agreement funds to a level of expenditures starting on the date that the NOFA is to request additional information and adequate to establish that such funds published through the date listed in documentation. The CDFI Fund will use have been used according to the Federal Table 1 and Table 12. The CDFI Fund such information to monitor each statutes, regulations, and the terms and strongly recommends applicants submit Recipient’s compliance with the conditions of the Federal award. questions to the CDFI Fund via an AMIS requirements in the Assistance The cost principles used by service request to the NACA Program, Agreement and to assess the impact of Recipients must be consistent with Certification, Compliance Monitoring the NACA Program. The CDFI Fund Federal cost principles and support the and Evaluation, or IT Help Desk. The reserves the right, in its sole discretion, accumulation of costs as required by the CDFI Fund will post on its website to modify these reporting requirements, principles, and must provide for responses to reoccurring questions including increasing the scope and adequate documentation to support received about this Application. Other frequency of reporting, if it determines costs charged to the NACA Program information regarding the CDFI Fund it to be appropriate and necessary; award. In addition, the CDFI Fund will and its programs may be obtained from however, such reporting requirements require Recipients to: Maintain effective the CDFI Fund’s website at http:// will be modified only after notice to internal controls; comply with www.cdfifund.gov. Table 20 lists CDFI Recipients. applicable statutes, regulations, and the Fund contact information: 2. Financial Management and Assistance Agreement; evaluate and Accounting: The CDFI Fund will require monitor compliance; take action when

TABLE 20—CONTACT INFORMATION

Type of question Preferred method Telephone number (not toll free) Email addresses

NACA Program ...... Service Request via AMIS ...... 202–653–0421, option 1 ...... [email protected]. CCME ...... Service Request via AMIS ...... 202–653–0423 ...... [email protected]. AMIS—IT Help Desk ...... Service Request via AMIS ...... 202–653–0422 ...... [email protected].

B. Information Technology Support: in their accounts. This includes that s/he has been subjected to For IT Assistance, submit an AMIS information such as contact names discrimination and/or reprisal because Service Request (Record Type of (especially for the Authorized of membership in a protected group, s/ ‘‘General Inquiry’’). In the Service Representative) listed in this NOFA’s he may file a complaint with: Associate Request form, select the appropriate application materials, email addresses, Chief Human Capital Officer, Office of program, then select ‘‘AMIS Technical fax and phone numbers, and office Civil Rights, and Diversity, 1500 Problem’’ as the Type. People who have locations. Pennsylvania Ave. NW, Washington, DC visual or mobility impairments that D. Civil Rights and Diversity: Any 20220 or (202) 622–1160 (not a toll-free prevent them from using the CDFI person who is eligible to receive number). Fund’s website should call (202) 653– benefits or services from the CDFI Fund VIII. Other Information 0422 for assistance (this is not a toll free or Recipients under any of its programs number). is entitled to those benefits or services A. Paperwork Reduction Act: Under C. Communication with the CDFI without being subject to prohibited the Paperwork Reduction Act (44 U.S.C. Fund: The CDFI Fund will use the discrimination. The Department of the chapter 35), an agency may not conduct contact information in AMIS to Treasury’s Office of Civil Rights and or sponsor a collection of information, communicate with Applicants and Diversity enforces various Federal and an individual is not required to Recipients. It is imperative, therefore, statutes and regulations that prohibit respond to a collection of information, that Applicants, Recipients, discrimination in financially assisted unless it displays a valid OMB control Subsidiaries, Affiliates, and signatories and conducted programs and activities number. If applicable, the CDFI Fund maintain accurate contact information of the CDFI Fund. If a person believes may inform Applicants that they do not

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need to provide certain Application Authority: 2 U.S.C. 4701, et seq.; 12 CFR (TA) grants under the Community information otherwise required. parts 1805 and 1815; 2 CFR part 200. Development Financial Institutions Pursuant to the Paperwork Reduction Mary Ann Donovan, Program (CDFI Program) fiscal year (FY) Act, the CDFI Program, and NACA Director, Community Development Financial 2018 Funding Round. Program Application has been assigned Institutions Fund . Announcement Type: Announcement the following control number: 1559– [FR Doc. 2018–01998 Filed 1–31–18; 8:45 am] of funding opportunity. 0021. The DF–FA questions have been assigned the following control number: BILLING CODE 4810–70–P Funding Opportunity Number: CDFI– 1559–New. 2018–FATA. B. Application Information Sessions: DEPARTMENT OF THE TREASURY Catalog of Federal Domestic The CDFI Fund may conduct webinars Assistance (CFDA) Number: 21.020. or host information sessions for Community Development Financial Dates: organizations that are considering Institutions Fund applying to, or are interested in learning about, the CDFI Fund’s programs. For Funding Opportunity Title: Notice of further information, visit the CDFI Funds Availability (NOFA) inviting Fund’s website at http:// Applications for Financial Assistance www.cdfifund.gov. (FA) awards or Technical Assistance

TABLE 1—FY 2018 CDFI PROGRAM FUNDING ROUND CRITICAL DEADLINES FOR APPLICANTS

Time Description Deadline (eastern time—ET) Submission method

Last day to contact Certification, Compliance February 28, 2018 ...... 11:59 p.m...... Service Request via Award Management In- Monitoring and Evaluation (CCME) staff re- formation System (AMIS). garding CDFI Certification. CDFI certification applications ...... March 2, 2018 ...... 11:59 p.m...... Electronically via AMIS. Create AMIS Account (New Applicants) ...... March 2, 2018 ...... 11:59 p.m...... AMIS. SF424 (Application for Federal Assistance) .... March 2, 2018 ...... 11:59 p.m...... Electronically via Grants.gov. Last day to contact CDFI Program staff ...... April 2, 2018 ...... 5:00 p.m...... Service Request via AMIS Or CDFI Fund Helpdesk: 202–653–0421. CDFI Program Application for Financial Assist- April 4, 2018 ...... 11:59 p.m...... AMIS. ance (FA) or Technical Assistance (TA).

Executive Summary: Through the Fund has allocated more than $50.5 Principles, and Audit Requirements for CDFI Program, the CDFI Fund provides billion in tax credit allocation authority Federal Awards (2 CFR 200; 78 Federal (i) FA awards of up to $1 million to through the New Markets Tax Credit Register 78590) (the Uniform Certified Community Development Program (NMTC Program) and has Requirements) for a complete Financial Institutions (CDFIs) to build guaranteed $1.36 billion in bonds for understanding of the program. their financial capacity to lend to their Eligible CDFIs through the CDFI Bond Capitalized terms in this NOFA are Target Markets, and (ii) TA grants of up Guarantee Program. defined in the authorizing statute, the to $125,000 to build Certified, B. Priorities: Through the CDFI Regulations, this NOFA, the Certifiable, and Emerging CDFIs’ Program’s FA awards and TA grants, the Application, or the Uniform organizational capacity to serve their CDFI Fund invests in and builds the Requirements. Details regarding Target Markets. All awards provided capacity of for-profit and non-profit Application content requirements are through this NOFA are subject to community based lending organizations found in the Application and related funding availability. known as CDFIs. These organizations, materials. certified as CDFIs by the CDFI Fund, D. Uniform Administrative I. Program Description serve rural and urban low-income Requirements, Cost Principles, and A. History: The CDFI Fund was people, and communities across the Audit Requirements for Federal Awards established by the Riegle Community nation that lack adequate access to (2 CFR 200): The Uniform Requirements Development Banking and Financial affordable financial products and codify financial, administrative, Institutions Act of 1994 to promote services. procurement, and program management economic revitalization and community C. Authorizing Statutes and standards that Federal award agencies development through investment in and Regulations: The CDFI Program is must follow. When evaluating award assistance to CDFIs. Since its creation in authorized by the Riegle Community applications, awarding agencies must 1994, the CDFI Fund has awarded more Development Banking and Financial evaluate the risks to the program posed than $2.5 billion to CDFIs, community Institutions Act of 1994 (Pub. L. 103– by each applicant, and each applicant’s development organizations, and 325, 12 U.S.C. 4701 et seq.). The merits and eligibility. These financial institutions through the regulations governing the CDFI Program requirements are designed to ensure that Community Development Financial are found at 12 CFR parts 1805 and 1815 applicants for Federal assistance receive Institutions Program (CDFI Program), (the Regulations) and set forth a fair and consistent review prior to an the Native American CDFI Assistance evaluation criteria and other program award decision. This review will assess Program (NACA Program), the Bank requirements. The CDFI Fund items such as the Applicant’s financial Enterprise Award Program (BEA encourages Applicants to review the stability, quality of management Program), the Capital Magnet Fund, and Regulations; this NOFA; the systems, the soundness of its business the Financial Education and Counseling Application; and the Uniform plan, history of performance, ability to Pilot Program. In addition, the CDFI Administrative Requirements, Cost achieve measurable impacts through its

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products and services, and audit whole or in part, any, all, or none of the II. Federal Award Information findings. In addition, the Uniform Applications submitted in response to A. Funding Availability Requirements include guidance on audit this NOFA. requirements and other award 1. FY 2018 Funding Round: The CDFI compliance requirements for Recipients. Fund expects to award, through this E. Funding Limitations: The CDFI NOFA, approximately $183.5 million as Fund reserves the right to fund, in indicated in the following table:

TABLE 2—FY 2018 FUNDING ROUND ANTICIPATED CATEGORY AMOUNTS

Award amount Estimate Funding categories Estimated Estimated average Average (see definition in Table 7 for TA or Table total amount number of amount amount 8 for FA) to be awarded Minimum Maximum awards for awarded in awarded in (millions) FY 2018 FY 2018 FY 2017

FA: Category I/Small and/or Emerging CDFI Assistance (SECA) ...... $19 $200,000 $700,000 40 $475,000 $478,000 FA: Category II/Core ...... 117.6 500,000 1,000,000 160 735,000 810,000 Persistent Poverty Counties—Financial Assistance (PPC–FA) ...... 18.4 100,000 300,000 100 184,000 210,000 Disability Funds—Financial Assistance (DF–FA)* ...... 2.5 100,000 500,000 10 250,000 N/A TA ...... 4 10,000 125,000 35 114,000 116,000 Healthy Food Financing Initiative—Finan- cial Assistance (HFFI–FA) * ...... 22 500,000 5,000,000 10 2,200,000 1,700,000

Total ...... 183.5 ...... 355 ...... * DF–FA and HFFI–FA appropriation will be allocated in one competitive round between the NACA and CDFI Program NOFAs.

The CDFI Fund reserves the right to award or (ii) a Certified CDFI award request as stated in its award more or less than the amounts Recipient’s two full consecutive fiscal Application. cited above in each category, based years after the date of the award 2. Persistent Poverty Counties— upon available funding and other announcement, during which the Financial Assistance (PPC–FA) Awards: factors, as appropriate. Recipient must meet the performance PPC–FA awards will be provided as a 2. Funding Availability for the FY goals set forth in the Assistance supplement to FA awards; therefore, 2018 Funding Round: Funds for the FY Agreement. The period of performance only those Applicants that are selected 2018 Funding Round are subject to for FA awards begins with the date of to receive an FA award through the change based on passage of a final FY the award announcement and includes CDFI Program FY 2018 Funding Round 2018 budget; if Congress does not a Recipient’s three full consecutive will be eligible to receive a PPC–FA appropriate funds for the CDFI Program fiscal years after the date of the notice award. PPC–FA awards can be in the there will not be an FY 2018 Funding of the award, during which time the form of loans, grants, Equity Investment, Round. If funds are appropriated, the Recipient must meet the performance deposits and credit union shares. The amount of such funds may be greater or goals set forth in the Assistance form of the PPC–FA award is based on less than the amounts set forth above. Agreement. the form of the matching funds that the The CDFI Fund reserves the right to Applicant includes in its Application, B. Types of Awards: Through the contact applicants to seek additional unless Congress waives the matching CDFI Program, the CDFI Fund provides information in the event that final FY funds requirement. Matching funds are two types of awards: Financial 2018 appropriations for the CDFI required for PPC–FA awards, must be Assistance (FA) and Technical Program change any of the requirements from non-Federal sources, and cannot Assistance (TA) awards. An Applicant of this NOFA. As of the date of this have been used as matching funds for NOFA, the CDFI Fund is operating may submit an Application for a TA any other Federal award. The CDFI under a continuing funding resolution grant or an FA award, but not both. Fund reserves the right, in its sole as enacted by the Extension of the 1. FA Awards: FA awards can be in discretion, to provide a PPC–FA award Continuing Appropriations Act, 2018 the form of loans, grants, Equity in an amount other than that which the (Pub. L. 115–120) and Supplemental Investments, deposits and credit union Applicant requests; however, the award Appropriations for Disaster Relief shares. The form of the FA award is amount will not exceed the Applicant’s Requirements Act, 2017 (Pub. L. 115– based on the form of the matching funds award request as stated in its 56). that the Applicant includes in its Application. 3. Anticipated Start Date and Period Application, unless Congress waives the The PPC–FA award is evaluated of Performance: The CDFI Fund matching funds requirement. Matching independently from the FA award and anticipates the period of performance funds are required for FA awards, must will not affect the FA award evaluation for the FY 2018 Funding Round will be from non-Federal sources, and or amount. begin in late September 2018. cannot have been used as matching 3. Disability Funds—Financial Specifically, the period of performance funds for any other Federal award. The Assistance (DF–FA) Awards: DF–FA for TA grants begins with the date of the CDFI Fund reserves the right, in its sole awards will be provided as a notice of the award and includes either discretion, to provide an FA award in an supplement to FA awards; therefore, (i) an Emerging or Certifiable CDFI amount other than that which the only those Applicants that have been Recipient’s three full consecutive fiscal Applicant requests; however, the award selected to receive an FA award through years after the date of the notice of the amount will not exceed the Applicant’s the CDFI Program FY 2018 Funding

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Round will be eligible to receive a DF– from non-Federal sources, and cannot the Applicant in its application, to FA award. DF–FA awards can be in the have been used as matching funds for achieve one or more of the following FA form of loans, grants, Equity any other Federal award. The CDFI Objectives: (i) Increase Volume of Investments, deposits and credit union Fund reserves the right, in its sole Financial Products or Financial Services shares. The form of the DF–FA award is discretion, to provide an HFFI–FA in an Eligible Market(s) or in the based on the form of the matching funds award in an amount other than that Applicant’s approved Target Market; (ii) that the Applicant includes in its which the Applicant requests; however, Serve New Geographic Area or Areas; Application, unless Congress waives the the award amount will not exceed the (iii) Provide New Financial Products in matching funds requirement. Matching Applicant’s award request as stated in an Eligible Market(s) or in the funds are required for DF–FA awards, its Application. The HFFI–FA award is Applicant’s approved Target Market, must be from non-Federal sources, and evaluated independently from the FA New Financial Services in an Eligible cannot have been used as matching award and will not affect the FA award Market(s) or in the Applicant’s funds for any other Federal award. The evaluation or amount. approved Target Market, or New CDFI Fund reserves the right, in its sole 5. TA Grants: TA is provided in the Development Services in an Eligible discretion, to provide a DF–FA award in form of grants. The CDFI Fund reserves Market(s) or in the Applicant’s an amount other than that which the the right, in its sole discretion, to approved Target Market; and (iv) Serve Applicant requests; however, the award provide a TA grant in an amount other New Targeted Population or amount will not exceed the Applicant’s than which the Applicant requests; Populations. FA awards can only be award request as stated in its however, the TA grant amount will not used for Direct Costs associated with an Application. The DF–FA award is exceed the Applicant’s request as stated eligible activity; no indirect expenses evaluated independently from the FA in its Application. are allowed. Up to 15 percent of the FA award and will not affect the FA award C. Eligible Activities: award can be used for Direct 1. FA Awards: FA, PPC–FA, DF–FA, evaluation or amount. Administrative Expenses associated 4. Healthy Food Financing Initiative— and HFFI–FA award funds can be with an eligible FA activity. ‘‘Direct Financial Assistance (HFFI–FA) expended for activities serving Administrative Expenses’’ shall mean Awards: HFFI–FA awards will be Commercial Real Estate, Small Business, Direct Costs, as described in section 2 provided as a supplement to FA awards; Microenterprise, Community Facilities, CFR 200.413 of the Uniform therefore, only those Applicants that Consumer Financial Products, have been selected to receive an FA Consumer Financial Services, Requirements, which are incurred by award through the CDFI Program FY Commercial Financial Services, the Recipient to carry out the Financial 2018 Funding Round will be eligible to Affordable Housing, Intermediary Assistance. Direct Costs incurred to receive an HFFI–FA award. HFFI–FA Lending to Non-Profits and CDFIs, and provide Development Services or awards can be in the form of loans, other lines of business as deemed Financial Services do not constitute grants, Equity Investments, deposits and appropriate by the CDFI Fund in the Direct Administrative Expenses. credit union shares. The form of the following five categories: (i) Financial The Recipient must comply, as HFFI–FA award is based on the form of Products; (ii) Financial Services; (iii) applicable, with the Buy American Act the matching funds that the Applicant Loan Loss Reserves; (iv) Development of 1933, 41 U.S.C. 8301–8303, with includes in its Application, unless Services; and (v) Capital Reserves. FA respect to any Direct Costs. For Congress waives the matching funds Recipients must meet Performance purposes of this NOFA, the five eligible requirement. Matching funds are Goals, which will be derived from activity categories are defined as required for HFFI–FA awards, must be projections and attestations provided by follows:

TABLE 3—FA, PPC–FA, DF–FA, AND HFFI–FA ELIGIBLE ACTIVITY CATEGORIES

FA Eligible activity definition—All FA Eligible activities must be in an FA eligible activity eligible market or the applicant’s approved target market Eligible CDFI institution types

i. Financial Products ...... FA expended as loans, Equity Investments and similar financing ac- All. tivities (as determined by the CDFI Fund) including the purchase of loans originated by certified CDFIs and the provision of loan guar- antees; in the case of CDFI Intermediaries, Financial Products may also include loans to CDFIs and/or emerging CDFIs and deposits in Insured Credit Union CDFIs, emerging Insured Credit Union CDFIs, and/or State-Insured Credit Union CDFIs. For HFFI–FA, however, the purchase of loans originated by certified CDFIs is not an Eligible Activity. ii. Financial Services ...... FA expended for providing checking, savings accounts, check cash- Insured Depository Institutions and ing, money orders, certified checks, deposit taking, safe deposit Depository Institution Holding box services, and other similar services. Company only. Not applicable for HFFI–FA Re- cipients. iii. Loan Loss Reserves ...... FA set aside in the form of cash reserves, or through accounting- All. based accrual reserves, to cover losses on loans, accounts, and notes receivable or for related purposes that the CDFI Fund deems appropriate. iv. Development Services ...... FA expended for activities undertaken by a CDFI, its Affiliate or con- All. tractor that promote community development and shall prepare or assist current or potential borrowers or investees to use the CDFI’s Financial Products or Financial Services. For example, such activi- ties include, financial or credit counseling; homeownership coun- seling; and business planning and management assistance.

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TABLE 3—FA, PPC–FA, DF–FA, AND HFFI–FA ELIGIBLE ACTIVITY CATEGORIES—Continued

FA Eligible activity definition—All FA Eligible activities must be in an FA eligible activity eligible market or the applicant’s approved target market Eligible CDFI institution types

v. Capital Reserves ...... FA set aside as reserves to support the Applicant’s ability to leverage Insured Depository Institutions and other capital, for such purposes as increasing its net assets or pro- Depository Institution Holding viding financing, or for related purposes as the CDFI Fund deems Company only. Not applicable appropriate. for DF–FA. Eligible Market is defined as (i) a geographic area meeting the requirements set forth in 12 CFR 1805.201(b)(3)(ii), or (ii) individuals that are Low-Income or are African American, Hispanic or American Indian, Native Hawaiians residing in Hawaii, Native Alaskans residing in Alaska, and Other Pacific Islanders residing in American Samoa, Guam or the Northern Mariana Islands.

2. DF–FA Award: DF–FA award funds or purchase affordable, accessible, and eligible activity categories: (i) can only be expended for eligible FA safe housing; loans to provide or Compensation—personnel services; (ii) activities referenced in Table 3 to facilitate employment opportunities; Compensation—fringe benefits; (iii) directly or indirectly benefit individuals and loans to purchase assistive Professional Service Costs; (iv) Travel with disabilities. The DF–FA Recipient technology. Costs; (v) Training and Education Costs; must close Financial Products for the For the purposes of DF- FA, a person (vi) Equipment and other capital primary purpose of directly or indirectly with a Disability is: A person who has expenditures; and (vii) Supplies. Each benefiting people with disabilities in an a physical or mental impairment that of the eligible activity categories will amount equal to or greater than 85 substantially limits one or more major not be authorized for indirect costs or an percent of the total DF–FA provided. life activities, a person who has a associated indirect cost rate. The Such financing activities have a primary history or record of such an impairment, Recipient must comply, as applicable, purpose of directly or indirectly or a person who is perceived by others with the Buy American Act of 1933, 41 benefiting individuals with disabilities as having such an impairment, as U.S.C. 8301–8303, with respect to any where the majority of the DF–FA defined by the American Disabilities supported loans or investments benefit Act (ADA) at https://www.ada.gov/ Direct Costs. For purposes of this individuals with disabilities. Eligible cguide.htm. NOFA, the seven eligible activity DF–FA financing activities may include, 3. TA Grants: TA grant funds can be categories are defined as follows: among other activities, loans to develop expended for the following seven

TABLE 4—TA ELIGIBLE ACTIVITY CATEGORIES AS SUBJECT TO THE APPLICABLE PROVISIONS OF THE UNIFORM REQUIREMENTS

(i) Compensation—personnel serv- TA paid to cover salaries of the Applicant’s personnel that are paid currently or accrued by the Applicant ices. for work performed directly related to carrying out the purpose of the TA grant (including activities re- lated to becoming certified as a CDFI). Any work performed directly but unrelated to the purposes of the TA grant cannot be paid as Compensa- tion through a TA grant. For example, the salaries for building maintenance would not carry out the pur- pose of a TA grant and would be deemed unallowable. (ii) Compensation—fringe benefits .. TA paid to cover costs of the Applicant’s personnel employment (other than the employees’ salaries). The costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, non-Federal entity-employee agreement, or an established policy of the non-Federal entity and consist- ently applied organizational policies. (iii) Professional service costs ...... TA used to pay for professional and consultant services (e.g. such as strategic and marketing plan devel- opment), rendered by persons who are members of a particular profession or possess a special skill (e.g. credit analysis, portfolio management), and who are not officers or employees of the Recipient. Payment for a consultant’s services may not exceed the current maximum of the daily equivalent rate paid to an Executive Schedule Level IV Federal employee. Professional and consultant services must build the capacity of the CDFI. For example, professional services that provide direct development serv- ices to the customers does not build the capacity of the CDFI to provide those services and would not be eligible. (iv) Travel costs ...... TA used to pay expenses for transportation, lodging, subsistence, and related items incurred by the Appli- cant’s personnel (does not include consultants or board members) who are on travel status on business related to the TA grant. Any payments for travel expenses incurred by the Applicant’s personnel but un- related to carrying out the purpose of the TA grant would be deemed unallowable. As such, documenta- tion must be maintained that justifies the travel as necessary to the TA grant. (v) Training and education costs .... TA used to pay the cost of training and education provided for employee development. TA can only be used to pay for training costs incurred by the Applicant’s personnel (does not include consultants or board members). (vi) Equipment ...... TA used to pay for tangible personal property, having a useful life of more than one year and a per-unit acquisition cost of at least $5,000. For example, items such as office furnishings and information tech- nology systems are allowable as Equipment costs. The Recipient must comply, as applicable, with the Buy American Act of 1933, 41 U.S.C. 8301–8303 with respect to the purchase of Equipment. (vii) Supplies ...... TA used to pay for tangible personal property with a per unit acquisition cost of less than $5,000. For ex- ample, a desktop computer costing $1,000 is allowable as a Supply cost. The Recipient must comply, as applicable, with the Buy American Act of 1933, 41 U.S.C. 8301–8303 with respect to the purchase of Supplies.

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TABLE 4—TA ELIGIBLE ACTIVITY CATEGORIES AS SUBJECT TO THE APPLICABLE PROVISIONS OF THE UNIFORM REQUIREMENTS—Continued (viii) Unallowable Costs ...... The following costs are unallowable and cannot be paid for with a TA grant (but not limited to per the UAR): • Selling or marketing products or services of the non-federal entity that are not directly related to building the capacity of the CDFI • Advertising media, including printing of materials, the cost of displays, demonstrations, and exhibits that are not directly related to building the capacity of the CDFI • Promotional items and memorabilia • Advertising and public relations designed solely to promote the non-Federal entity that are not directly related to building the capacity of the CDFI • Facilities acquisition/development costs • Fees, including fees paid to brokers, promoters, organizers, management consultants, attor- neys, accountants, or investment counselor • Memberships in country clubs or organizations whose primary purpose is lobbying • Audit costs for audits either: (1) Required under the Single Audit Act but have not been con- ducted or have been conducted but not in accordance with the Single Audit Act requirements; or (2) for a non-Federal entity that is exempted from having an audit conducted in the Single Audit act

4. HFFI–FA Award: HFFI–FA award USDA Dietary Guidelines: http:// Family Income; or (3) be a Geographic funds can only be expended for eligible www.choosemyplate.gov/dietary- Unit as defined in 12 CFR part FA activities referenced in Table 3. The guidelines.) 1805.201(b)(3)(ii)(B), which (i) HFFI–FA investments must comply Healthy Food Retail Outlets. individually meets at least one of the with the following guidelines: Commercial sellers of Healthy Foods criteria in 12 CFR part a. Recipient must close Financial including, but not limited to, grocery 1805.201(b)(3)(ii)(D), and (ii) has been Products for Healthy Food Retail Outlets stores, mobile food retailers, farmers identified as having low access to a and Healthy Food Non-Retail Outlets in markets, retail cooperatives, corner supermarket or grocery store through a its Target Market in an amount equal to stores, bodegas, stores that sell other methodology that has been adopted for or greater than 100 percent of the total food and non-food items along with a use by another governmental or HFFI Financial Assistance provided. range of Healthy Foods, as those terms philanthropic healthy food initiative. Eligible financing activities to Healthy are determined and defined by the CDFI 5. PPC–FA Award: PPC–FA award Food Retail Outlets and Healthy Food Fund in the Assistance Agreement and funds can only be expended for eligible Non-Retail Outlets require that the related compliance materials. FA activities referenced in Table 3. The majority of the loan or investment be Healthy Food Non-Retail Outlets. PPC–FA Recipient must close Financial devoted to offering a range of Healthy Wholesalers of Healthy Foods Products to an Eligible Market or in the Food choice, which may include, among including, but not limited to, wholesale Applicant’s approved Target Market in other activities, investments supporting food outlets, wholesale cooperatives, or a Persistent Poverty Counties (PPC) in an existing retail store or wholesale other non-retail food producers that an amount equal to or greater than 100 operation upgrade to offer an expanded supply for sale a range of Healthy Food percent of the total PPC Financial range of Healthy Food choices, or options; entities that produce or Assistance provided. The specific supporting a nonprofit organization that distribute Healthy Foods for eventual counties that meet the criteria for expands the availability of Healthy retail sale, and entities that provide ‘‘persistent poverty’’ can be found at: Foods in underserved areas. consumer education regarding the b. Recipient must demonstrate that it consumption of Healthy Foods, as those https://www.cdfifund.gov/Documents/ has closed Financial Products to terms are determined and defined by the Persistent%20Poverty%20 Healthy Food Retail Outlets located in CDFI Fund in the Assistance Agreement Counties%20CDFI%20Fund%20July6- Food Deserts in the Recipient’s Target and related compliance materials. 2017.xlsx. Market in an amount equal to 75% of Food Deserts. Distressed geographic III. Eligibility Information the total HFFI Financial Assistance areas where either a substantial number provided. or share of residents has low access to A. Eligible Applicants: For the a supermarket or large grocery store. For purposes of this NOFA, the following Definitions the purpose of satisfying this tables set forth the eligibility criteria to Healthy Foods. Healthy Foods include requirement, a Food Desert must either: be in contention to receive an award unprepared nutrient-dense foods and (1) Be a census tract determined to be from the CDFI Fund, along with certain beverages as set forth in the USDA a Food Desert by the U.S. Department of definitions of terms. There are four Dietary Guidelines for Americans 2015– Agriculture (USDA), in its USDA Food categories of Applicant eligibility 2020 including whole fruits and Access Research Atlas; (2) be a census criteria: (1) CDFI certification criteria vegetables, whole grains, fat free or low- tract adjacent to a census tract (Table 5); (2) requirements that apply to fat dairy foods, lean meats and poultry determined to be a Food Desert by the all Applicants (Table 6); (3) (fresh, refrigerated, frozen or canned). USDA, in its USDA Food Access requirements that apply to TA Healthy Foods should have low or no Research Atlas; which has a median Applicants (Table 7); and (4) added sugars, and be low-sodium, family income less than or equal to 120 requirements that apply to FA reduced sodium, or no-salt-added. (See percent of the applicable Area Median Applicants (Table 8).

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TABLE 5—CDFI CERTIFICATION CRITERIA DEFINITIONS

Certified CDFI ...... • An entity that the CDFI Fund has officially notified that it meets all CDFI certification requirements. Certifiable CDFI ...... • An entity that has submitted a CDFI certification application to the CDFI Fund demonstrating that it meets the CDFI certification requirements but which has not yet been officially certified. (See Table 12 for application submission deadlines.) • The CDFI Fund will not enter into an Assistance Agreement or make an FA award payment unless and until an Applicant is a Certified CDFI. • The CDFI Fund will enter into an Assistance Agreement if the Applicant is awarded a TA award regard- less of the Applicant’s certification status. Emerging CDFI (TA Applicants) ..... • A non-Certified entity that has not submitted a CDFI certification application but demonstrates to the CDFI Fund in its Application that it has an acceptable plan to meet CDFI certification requirements by the end of its period of performance, or another date that the CDFI Fund selects. • An Emerging CDFI that has prior award(s) will be held to the CDFI certification performance goal and measure(s) stated in its prior Assistance Agreement(s). • Emerging CDFIs may only apply for TA grants; they are not eligible to apply for FA awards. • Emerging CDFI selected to receive a TA grant will be required to become a Certified CDFI by a date specified in the Assistance Agreement.

TABLE 6—ELIGIBILITY REQUIREMENTS FOR ALL APPLICANTS

Applicant ...... • Only the entity that will carry out the proposed award activities can apply for an award (i.e., the intended Recipient, other than Depository Institution Holding Companies (see below)). Recipients cannot create a new legal entity to carry out the proposed award activities. • The information in the Application should only reflect the activities of the Applicant, including the presen- tation of financial and portfolio information. Do not include financial or portfolio information from parent companies, Affiliates, or Subsidiaries in the Application unless it relates to the provision of Development Services. • An Applicant that applies on behalf of another organization will be rejected without further consideration, other than Depository Institution Holding Companies (see below). Application type and submission • Applicants must submit the required application documents listed in Table 10. overview through Grants.gov and • The CDFI Fund will only accept Applications that use the official application templates provided on the Awards Management Information Grants.gov and AMIS websites. Applications submitted with alternative or altered templates will not be System (AMIS). considered. • Applicants have a two-step process that requires the submission of application documents on two sepa- rate deadlines and locations: (1) the SF–424 in Grants.gov and (2) all other required application mate- rials in AMIS. • Grants.gov and the SF–424: Æ Grants.gov: Applicants must submit the Office of Management and Budget (OMB) Standard Form (SF) OMB SF–424, Application for Federal Assistance. Æ All Applicants must register in the Grants.gov system to successfully submit an application. The Grants.gov registration process can take 30 days or more to complete. The CDFI Fund strongly en- courages applicants to register as early as possible. Æ The CDFI Fund will not extend the SF–424 (or AMIS) application deadline for any Applicant that started the Grants.gov registration process on, before, or after the date of the publication of this NOFA, but did not complete it by the deadline except in the case of a Federal government adminis- trative or technological error that directly resulted in a late submission of the SF–424. Æ The SF–424 must be submitted in Grants.gov on or before March 2, 2018, the deadline listed in Table 1 and Table 12. Applicants are strongly encouraged to submit their SF–424 as early as pos- sible in the Grants.gov portal. Æ The deadline for the Grants.gov submission is before the AMIS deadline. Æ The SF–424 must be submitted under the CDFI Program Funding Opportunity Number. Æ If the SF–424 is not accepted by Grants.gov by the deadline, the CDFI Fund will not review any material submitted in AMIS and the application will be deemed ineligible. • AMIS and all other required application materials: Æ AMIS is an enterprise-wide information technology system that replaced the myCDFI Fund portal. Applicants will use AMIS to submit and store organization and application information with the CDFI Fund. Æ Applicants are only allowed one CDFI Program Application submission in AMIS. Æ Each Application in AMIS must be signed by an Authorized Representative. Æ Applicants must ensure that the Authorized Representative is authorized to sign legal documents on behalf of the organization; consultants working on behalf of the organization cannot be designated as Authorized Representatives. Æ Only the Authorized Representative or Application Point of Contact, included in the Application, can submit the Application in AMIS. Æ All required application materials must be submitted in AMIS on or before the deadline specified in Tables 1 and 12. Employer Identification Number • Applicants must have a unique EIN assigned by the Internal Revenue Service (IRS). (EIN). • The CDFI Fund will reject an Application submitted with the EIN of a parent or Affiliate organization. Dun & Bradstreet, (DUNS) number • Pursuant to OMB guidance (68 FR 38402), an Applicant must apply using its unique DUNS number in Grants.gov. • The CDFI Fund will reject an Application submitted with the DUNS number of a parent or Affiliate orga- nization.

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TABLE 6—ELIGIBILITY REQUIREMENTS FOR ALL APPLICANTS—Continued System for Award Management • SAM is a web-based, government-wide application that collects, validates, stores, and disseminates (SAM). business information about the federal government’s trading partners in support of the contract awards, grants, and electronic payment processes. • Applicants must register in SAM as part of the Grants.gov registration process. • Applicants must have a DUNS number and an EIN number in order to register in SAM. • Applicants must be registered in SAM before they can submit an SF–424 in Grants.gov. AMIS Accounts ...... • Each Applicant must register as an organization in AMIS and submit all required application materials through the AMIS portal. • The Application of any organization that does not properly register in AMIS by the deadline set forth in Table 1—FY 2018 CDFI Program Funding Round Critical Deadlines for Applicants—will be rejected without further consideration. • The Authorized Representative and/or Application Point of Contact must be included as ‘‘users’’ in the Applicant’s AMIS account. • An Applicant that fails to properly register and update its AMIS account may miss important communica- tion from the CDFI Fund or not be able to successfully submit an Application. 501 (c)(4) status ...... • Pursuant to 2 U.S.C. 1611, any 501 (c)(4) organization that engages in lobbying activities is not eligible for the receipt of a CDFI or NACA Program award. Compliance with Nondiscrimination • An Applicant may not be eligible to receive an award if proceedings have been instituted against it in, and Equal Opportunity Statutes, by, or before any court, governmental agency, or administrative body, and a final determination within Regulations, and Executive Or- the last three years indicates the Applicant has violated any of the following laws but not limited to: Title ders. VI of the Civil Rights Act of 1964, as amended (42 U.S.C.2000d); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); the Age Discrimination Act of 1975, (42 U.S.C. 6101–6107), and Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency. Depository Institution Holding Com- • In the case where a CDFI Depository Institution Holding Company Applicant intends to carry out the ac- pany Applicant. tivities of an award through its Subsidiary CDFI Insured Depository Institution, the Application must be submitted by the CDFI Depository Institution Holding Company and reflect the activities and financial performance of the Subsidiary CDFI Insured Depository Institution. • Authorized representatives of both the Depository Institution Holding Company and the Subsidiary CDFI Insured Depository Institution must certify that the information included in the Application represents that of the Subsidiary CDFI Insured Depository Institution, and that the award funds will be used to support the Subsidiary CDFI Insured Depository Institution for the eligible activities outlined in the Application. Insured CDFI—Insured Credit • To be eligible for an award, each Insured Depository Institution Applicant must have a CAMELS/CAMEL Union and Insured Depository In- rating (rating for banks and credit unions, respectively), by its Federal regulator of at least ‘‘3’’. stitution. • Organizations with CAMELS/CAMEL ratings of ‘‘4 or 5’’ will not be eligible for awards. • The CDFI Fund will also evaluate materials concerns identified by the Appropriate Federal Banking Agency in determining eligibility of Insured Depository Institution Applicants. Use of award ...... • All awards made through this NOFA must be used to support the Applicant’s activities in at least one of the FA or TA Eligible Activity Categories (see Section II.C). • Awards cannot be used to support the activities of, or otherwise be passed through, transferred, or co- awarded to, third-party entities, whether Affiliates, Subsidiaries, or others without the CDFI Fund’s prior written consent (other than Depository Institution Holding Company Applicants). • The Recipient of any award made through this NOFA must comply, as applicable, with the Buy Amer- ican Act of 1933, 41 U.S.C. 8301–8303, with respect to any Direct Costs. Requested award amount ...... • An Applicant must state its requested award amount in the Application in AMIS. An Application that does not include this amount will not be allowed to submit an Application. Pending resolution of noncompli- • The CDFI Fund will consider an Application submitted by an Applicant that has pending noncompliance ance. issues of any of its previously executed award agreement(s), if the CDFI Fund has not yet made a final compliance determination. Noncompliance status ...... • The CDFI Fund will not consider an Application submitted by an Applicant that has a previously exe- cuted award agreement(s) if, as of the date of the Application, (i) the CDFI Fund has made a determina- tion that such entity is noncompliant with a previously executed agreement and (ii) the CDFI Fund has provided written notification that such entity is ineligible to apply for or receive any future CDFI Fund awards or allocations. Such entities will be ineligible to submit an Application for such time period as specified by the CDFI Fund in writing. • The CDFI Fund will not consider any Applicant that has defaulted on a CDFI Program loan within five years of the Application deadline.

TABLE 7—ELIGIBILITY REQUIREMENTS FOR TA APPLICANTS

CDFI certification status ...... (1) Emerging CDFIs (see definitions in Table 5), or (2) Certifiable or Certified CDFIs (see Table 5) that meet the following criteria: (1) Have total assets* as of the end of the Applicant’s most recent fiscal year end in the following amounts: • Insured Depository Institutions and Depository Institution Holding Companies: up to $250 million • Insured Credit Unions: up to $10 million • Venture capital funds: up to $10 million • Other CDFIs: up to $5 million OR (2) Have begun operations** on or after January 1, 2014 * ‘‘Total assets’’ is defined as the Total Assets as of Fiscal Year End Date stated in the Applicant’s AMIS account and verified by internally prepared financial statements and/or audits. ** ‘‘Have begun operations’’ is defined as the financing activity start date indicated in the Applicant’s AMIS account.

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TABLE 7—ELIGIBILITY REQUIREMENTS FOR TA APPLICANTS—Continued Matching funds ...... • Matching funds documentation is not required for TA awards. Limitation on Awards ...... • An Emerging CDFI will be allowed to receive no more than three TA awards as an uncertified CDFI. Proposed Activities ...... • Applicants must propose to directly undertake eligible activities with TA awards. For example, an uncertified CDFI Applicant must propose to become certified as part of its application and a Certified CDFI Applicant must propose activities that build its capacity to serve its Target Market or an Eligible Market. • Applicants may not propose to use a TA award to create a separate legal entity to become a certified CDFI or otherwise carryout the TA award activities.

TABLE 8—ELIGIBILITY REQUIREMENTS FOR FA APPLICANTS

CDFI certification status ...... • Each FA Applicant must be a Certified CDFI prior to the announcement of award decisions. • The CDFI Fund will consider an Application submitted by an Applicant that has pending noncompliance issues with its Annual Certification Report, if the CDFI Fund has not yet made a final compliance deter- mination. Matching funds documentation ...... • All Applicants must submit acceptable documentation attesting that they have received or will receive matching funds. Applicants that do not submit the Matching Funds Excel Workbook documenting the source of their matching funds will not be evaluated. • Awards will be limited to no more than two times the amount of In-Hand or Committed matching funds documentation provided at the time of Application. • Awards will be obligated in like form to the matching funds provided at time of Application. See Table 9. Matching Funds ‘‘Determination of Award Form’’ for additional guidance. • Award payments from the CDFI Fund will require eligible dollar-for-dollar In-Hand matching funds for the total payment amount. Recipients will not receive a payment until 100 percent of their matching funds are In-Hand. • The CDFI Fund will reduce and de-obligate the remaining balance of any Award that does not dem- onstrate full dollar-for-dollar matching funds equal to the announced award amount by the end of the Matching Funds Window. $5 Million funding cap ...... • The CDFI Fund is prohibited from obligating more than $5 million in CDFI and NACA Program awards, in the aggregate, to any one organization and its Subsidiaries and Affiliates during any three-year pe- riod. • For purposes of this NOFA and subject to final FY 2018 appropriations language, the CDFI Fund will in- clude CDFI and NACA Program final awards in the cap calculation that were provided to an Applicant (and/or its Subsidiaries or Affiliates) under the FY 2016, and 2017 funding rounds, as well as the re- quested FY 2018 award, excluding DF–FA, and HFFI–FA awards. The CDFI Fund will make the FY 2018 funding round award announcements after September 10, 2018. FA Category I (SECA) ...... • To be an eligible SECA Applicant, an Applicant must meet the following criteria: (1) Be a Certified or Certifiable CDFI; (2) Request $700,000 or less in FA funds; AND EITHER (3) Have total assets* as of the end of the Applicant’s most recent fiscal year end in the following amounts: • Insured Depository Institutions and Depository Institution Holding Companies: up to $250 million • Insured Credit Unions: up to $10 million • Venture capital funds: up to $10 million • Other CDFIs: up to $5 million OR (4) Have begun operations ** on or after January 1, 2014 * ‘‘Total assets’’ is defined as the Total Assets of Fiscal Year End Date stated in the Applicant’s AMIS ac- count and verified by internally prepared financial statements and/or audits. ** ‘‘Have begun operations’’ is defined as the financing activity start date indicated in the Applicant’s AMIS account. FA Category II (Core) ...... • A Core Applicant must be either a Certified or Certifiable CDFI as defined in Table 5. • An Applicant that meets the SECA requirements stated above, and that requests more than $700,000 in award funds is categorized as an FA Category II (Core) Applicant, regardless of its total assets and/or years in operation. FA Applicants With Community • A CDFI Applicant can apply for assistance jointly with a Community Partner. The CDFI Applicant would Partners. complete the CDFI Program Application for (FA) and would address the Community Partnership in its business plan and other sections of the Application as specified in the guidance materials. • The CDFI Applicant must be either a Certified or Certifiable CDFI as defined in Table 5. • An Application with a Community Partner must: Æ Describe how the CDFI Applicant and Community Partner will each participate in carrying out the partnership and how the partnership will enhance activities serving the investment area or targeted population. Æ Demonstrate that the Community Partnership activities are consistent with the strategic plan sub- mitted by the CDFI—Applicant. • Assistance provided upon approval of an Application with a Community Partner shall only be entrusted to the CDFI Applicant and shall not be used to fund any activity carried out directly by the Community Partner or an Affiliate or Subsidiary thereof. PPC–FA ...... • All PPC–FA Applicants must: Æ Submit a CDFI or NACA Program FA Application; Æ Meet all FA award eligibility requirements; and Æ Provide a PPC–FA award request amount in AMIS.

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TABLE 8—ELIGIBILITY REQUIREMENTS FOR FA APPLICANTS—Continued DF–FA ...... • All DF–FA Applicants must: Æ Submit a CDFI or NACA Program FA Application; Æ Meet all FA award eligibility requirements; Æ Submit the DF–FA Application; and Æ Provide a DF–FA award request amount in AMIS. HFFI–FA ...... • All HFFI–FA Applicants must: Æ Submit a CDFI or NACA Program FA Application; Æ Meet all FA award eligibility requirements; Æ Submit the HFFI–FA Application; and Æ Provide a HFFI–FA award request amount in AMIS.

B. Matching Funds Requirements: In dollar-for-dollar matching funds at the encourages Applicants to review the order to receive an FA award, an time of application submission. The Regulations at 12 CFR 1805.500, the Applicant must provide evidence of CDFI Fund will review matching funds Uniform Requirements, and the eligible dollar-for-dollar matching funds information, attestations, and matching matching funds guidance materials and attest that it can provide acceptable funds documentation, if applicable, available on the CDFI Fund’s website. documentation upon the CDFI Fund’s prior to award payment and will pay Table 9 provides a summary of the request. An Applicant that uses funds based upon eligible In-Hand matching funds requirements; Retained Earnings or Equity Investments matching funds (see Table 9 for the additional details are set forth in the must provide documentation of eligible definition of In-Hand). The CDFI Fund Application materials.

TABLE 9—MATCHING FUNDS REQUIREMENTS

In-Hand matching funds definition .. • Matching funds are In-Hand when the Applicant receives payment for the matching funds from the matching funds source and has acceptable documentation that can be provided to the CDFI Fund upon request. Acceptable In-Hand documentation must show the source, form (e.g., grant, loan, deposit, and Equity Investment), amount received, and the date the funds came into physical possession of the Appli- cant. • The following documentation, depending on the matching funds type, must be available to be provided to the CDFI Fund upon request: • Loan—the loan agreement and/or promissory note; • grant—the grant letter or agreement; • equity investment—the stock certificate, documentation of total equity outstanding, and shareholder agreement; • retained earnings—Retained Earnings Calculator and audited financial statements or call reports from regulating entity for each fiscal year reported in Retained Earnings Calculator; • third party in-kind contribution- evidence of receipt of contribution and valuation; • deposits—certificates of deposit agreement; • secondary capital—secondary capital agreement and disclosure and acknowledgement statement; AND • clearly legible documentation that demonstrates actual receipt of the matching funds including the date of the transaction and the amount, such as a copy of a check or a wire transfer statement. • Applicants must provide information on their In-Hand matching funds in the Matching Funds Breakout Table Excel Workbook (refer to Table 10—Required Application Documents) which must be submitted at the time of Application. • Although Applicants are not required to provide further documentation for In-Hand matching funds at the time of Application submission, other than for Retained Earnings and Equity Investments, they must be able to provide documentation to the CDFI Fund upon request. Matching funds requirements by The following Applicants must provide evidence of acceptable matching funds: application type. • Category I/SECA FA Applicants applying for FA, PPC–FA, and DF–FA (upon request); * • Category II/Core FA Applicants applying for FA, PPC–FA, and DF–FA; and • HFFI–FA Applicants (upon request).* TA Applicants are not required to provide matching funds. * The matching funds requirement for HFFI–FA and SECA FA applicants was waived in the appropriations bill for FY 2017, and final FY 2018 appropriations are pending. HFFI–FA and SECA FA applicants are not required to submit matching funds for their award requests at the time of application. However, the CDFI Fund reserves the right to request matching funds from HFFI–FA and SECA FA applicants if matching funds are not waived in the final FY 2018 CDFI Program appropriation. Amount of required match ...... Applicants must provide evidence of eligible, In-Hand, dollar-for-dollar, non-Federal matching funds for every FA award dollar to be paid by the CDFI Fund. If awarded, Applicants that do not demonstrate 100 percent In-Hand matching funds at the time of Application may experience a longer payment timeline. Determination of award form ...... FA awards will be made in comparable form and value to the eligible In-Hand and/or Committed matching funds documentation submitted by the Applicant. • For example, if an FA Applicant provides documentation of eligible loan matching funds for $200,000 and eligible grant matching funds of $400,000, the CDFI Fund will obligate $200,000 of the FA award as a loan and $400,000 as a grant.

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TABLE 9—MATCHING FUNDS REQUIREMENTS—Continued • After awards have been announced, Recipients may request the CDFI Fund’s permission to change the form of their award from loan to grant (by producing eligible grant matching funds), but will only be eligi- ble to receive a grant equal to the federal credit subsidy amount associated with the original loan. Appli- cants will also experience delays in payments if requested form of award changes are approved by the CDFI Fund. Matching Funds Window definition • The Applicant must receive eligible In-Hand matching funds between January 1, 2016 and January 15, 2019. • A Recipient must provide the CDFI Fund with all documentation demonstrating the receipt of In-Hand matching funds by January 31, 2019. Matching funds and form of award • Recipients will be approved for a maximum award size of two times the total amount of eligible In-Hand and/or Committed matching funds included in the Application, so long as they do not exceed the max- imum award amount. • The form of the matching funds documented in the Application determines the form of the award. Committed matching funds defini- • Matching funds are Committed when the Applicant has entered into or received a legally binding com- tion. mitment from the matching funds source showing the matching funds will be disbursed to the Applicant at a future date. • The Applicant must be able to provide the CDFI Fund, upon request, acceptable written documentation showing the source, form, and amount of the Committed matching funds (including, in the case of a loan, the terms thereof), as well as the anticipated payment date of the Committed funds. • The Applicant must provide information on their Committed matching funds in the Matching Funds Breakout Table Excel Workbook (refer to Table 10—Required Application Documents) which must be submitted at the time of Application. • Although the Applicant is not required to provide further documentation for Committed matching funds at the time of Application submission, other than for Retained Earnings, it must be able to provide docu- mentation to the CDFI Fund upon request. Limitations on matching funds ...... • Matching funds must be from non-Federal sources. • Applicants cannot proffer matching funds that were accepted as matching funds for a prior FA award under the CDFI Program, NACA Program, or under another Federal grant or award program. • Matching funds must comply with Regulations at 12 CFR 1805.500 et seq. • Matching funds must be attributable to at least one of the five eligible FA activities (see Section II.C). Rights of the CDFI Fund ...... • The CDFI Fund reserves the right to contact the matching funds source to discuss the matching funds and the documentation that the Applicant provided if required or requested. • The CDFI Fund may grant an extension of the Matching Funds Window (defined in Table 9), on a case- by-case basis, if the CDFI Fund deems it appropriate. • The CDFI Fund reserves the right to rescind all or a portion of an FA award and re-allocate the re- scinded award amount to other qualified Applicant(s), if a Recipient fails to provide evidence of In-Hand Matching Funds totaling its award amount obtained during the Matching Funds Window. Matching funds in the form of third- • Third party in-kind contributions are non-cash contributions (i.e., property or services) provided by non- party in-kind contributions. Federal third parties to the Applicant. • Third party in-kind contributions will be considered to be in the form of a grant for matching funds pur- poses. • Third party in-kind contributions may be in the form of real property, equipment, supplies, and other ex- pendable property, and the value of goods and services directly benefiting the eligible activities. • For third party in-kind contributions, the fair market value of goods and services must be documented as the grant match. • Applicants will be responsible for documenting the value of all in-kind contributions as described in the Uniform Requirements. Matching funds in the form of a • An FA award made in the form of a loan will have the following standardized terms: loan. i. A 13-year term with semi-annual interest-only payments due in years 1 through 10, and fully amor- tizing payments due each year in years 11 through 13; and ii. A fixed interest rate of 2.24 percent, which was calculated by the CDFI Fund based on the U.S. De- partment of the Treasury’s 10-year Treasury note. • The Applicant’s matching funds loan(s) must: i. Have a minimum of a 3-year term (loans presented as matching funds with less than a 3-year term will not qualify as eligible match); and ii. be from a non-Federal source. Severe Constraints Waiver ...... • In the case of an Applicant demonstrating severe constraints on available sources of matching funds, the CDFI Fund, in its sole discretion, may permit such Applicant to comply with the matching funds re- quirements by reducing such requirements by up to 50 percent. • In order to be considered eligible for a Severe Constraints Waiver, an Applicant must meet all of the SECA eligibility criteria described in Table 8. Instructions for requesting a Severe Constraints Waiver will be made available if required. • No more than 25 percent of the total funds available for obligation under this funding round may be matched under the Severe Constraints Waiver. Ineligible matching funds ...... • If the CDFI Fund determines that any portion of the Applicant’s matching funds is ineligible, the CDFI Fund will permit the Applicant to offer documentation of alternative matching funds as a substitute for the ineligible matching funds. • In such instances: i. The Applicant must provide acceptable evidence of the alternative matching funds within the period of time specified by the CDFI Fund, and ii. the alternative matching funds will not increase the total amount of FA requested.

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TABLE 9—MATCHING FUNDS REQUIREMENTS—Continued Use of matching funds from a prior If an Applicant offers matching funds documentation from an organization that was a prior Recipient under CDFI Program Recipient. the CDFI Program or NACA Program, the Applicant must be able to prove to the CDFI Fund’s satisfac- tion that such funds do not consist, in whole or in part, of CDFI Program funds, NACA Program funds, or other Federal funds. Matching funds in the form of re- • Retained earnings are eligible for use as matching funds when the CDFI Fund calculates an amount tained earnings. equal to: i. The increase in retained earnings that occurred over any one of the Applicant’s fiscal years within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award; or ii. the annual average of such increases that occurred over any three consecutive fiscal years of the Applicant with at least one of the fiscal years occurring within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award; or iii. any combination of (i) and (ii) above that does not include matching funds used for an award. • Retained earnings will be matched with an FA award in the form of a grant. • Depository Institution Holding Company Applicants must provide call reports for the Depository Institution Holding Company in order to verify their retained earnings, even if the requested FA award will support its subsidiary bank. Special rule for Insured Credit • An Insured Credit Union’s and Insured Depository Institution’s retained earnings are eligible for use as Unions and Insured Depository matching funds when the CDFI Fund calculates an amount equal to: Institutions. i. The increase in retained earnings that occurred over any one of the Applicant’s fiscal years within the Matching Funds Window, adjusted to remove revenue from Federal sources and matching funds used for an award; or ii. the annual average of such increases that occurred over any three consecutive fiscal years of the Applicant with at least one of the fiscal years occurring within the Matching Funds Window, adjusted to remove revenue and expenses derived from Federal sources and matching funds used for an award; or iii. the entire retained earnings that have been accumulated since the inception of the Applicant, as provided in the Regulations. • If option (iii) is used for Insured Credit Unions, the Applicant must increase its member and/or non-mem- ber shares and/or total loans outstanding by an amount equal to the amount of retained earnings com- mitted as matching funds. • This increase will be measured on a quarterly basis from March 31, 2018; must occur by the end of Year 1 of the Recipient’s Performance Period, as set forth in its Assistance Agreement; and will be based on amounts reported in the Applicant’s National Credit Union Administration (NCUA) form 5300 Call Report. • The CDFI Fund will assess the likelihood of this increase during the Application review process. • An award will not be made to any Applicant that has not demonstrated in the relevant NCUA form 5300 Call Reports that it has increased shares and/or total loans outstanding by at least 25 percent of the requested FA award amount between December 31, 2016, and December 31, 2017. • The matching funds are not In-Hand until the Recipient has increased its member and/or non-mem- ber shares, deposits and/or total loans outstanding by the amount of retained earnings since incep- tion used as matching funds within the time period specified. • If option (iii) is used for Insured Depository Institutions or Depository Institution Holding Companies, the Applicant or its Subsidiary Insured Depository Institution (in the case of a Depository Institution Holding Company) must increase deposits and/or total loans outstanding by an amount equal to the amount of retained earnings committed as matching funds. Depository Institution Holding Company Applicants must use the call reports of the CDFI Subsidiary Insured Depository Institution that the requested FA award will support. • This increase will be measured on a quarterly basis from March 31, 2018; must occur by the end of Year 1 of the Recipient’s Performance Period, as set forth in its Assistance Agreement; and will be based on amounts reported in the Bank Call Report. • The CDFI Fund will assess the likelihood of this increase during the Application review process. • An award will not be made to any Applicant that has not demonstrated in the relevant call reports that it has increased deposits and/or total loans outstanding by at least 25 percent of the requested FA award amount between December 31, 2016, and December 31, 2017. • The matching funds are not In-Hand until the Recipient has increased its deposits and/or total loans outstanding by the amount of retained earnings since inception used as matching funds within the time period specified. • All regulated Applicants utilizing the part (iii) Since Inception rule should refer to the Retained Earnings Guidance included in the Matching Funds Breakout Table Excel Workbook found on the CDFI Fund website.

V. Application and Submission Application material by contacting the dollars. The following table lists the Information CDFI Fund Help Desk at cdfihelp@ required Application documents for the A. Address To Request an Application cdfi.treas.gov. FY 2018 Funding Round. The CDFI Package: Application materials can be B. Content and Form of Application Fund reserves the right to request and found on the CDFI Fund’s website at Submission: All Applications must be review other pertinent or public www.cdfifund.gov/cdfi. Applicants may prepared using the English language, information that has not been request a paper version of any and calculations must be made in U.S. specifically requested in this NOFA or

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the Application. Information submitted Application. Information submitted Application should only include the by the Applicant that the CDFI Fund has must accurately reflect the Applicant’s Applicant’s activities. not specifically requested will not be activities. Financial data, portfolio, and reviewed or considered as part of the activity information provided in the

TABLE 10—REQUIRED APPLICATION DOCUMENTS

Application documents Applicant type Submission format

Active AMIS Account ...... All Applicants ...... AMIS. SF–424 ...... All Applicants ...... Fillable PDF in Grants.gov. CDFI Program Application Components: All Applicants ...... AMIS. • Funding Application Detail. • Data, Charts, and Narrative sections as listed in AMIS and out- lined in Application materials. DF–FA Application Components: DF–FA Applicants ...... AMIS. • Requested Disability Funds—Financial Assistance Amount Nar- —Must submit narrative docu- ratives *. ment to FA Application in AMIS. * DF–FA Narrative will be provided after FA Application submission if DF–FA funding request is specified in AMIS. HFFI–FA Application Components: HFFI–FA Applicants ...... AMIS. • Funding Application Detail. • Narratives ...... —Must create new funding application.

ATTACHMENTS TO THE APPLICATION: Add to ‘‘Related Attachments’’ related list in application

Key Staff Resumes ...... All Applicants ...... PDF or Word document in AMIS. Organizational Chart ...... All Applicants ...... PDF in AMIS. Audited Financial Statements For the Applicant’s Three Most Recent FA Applicants: Loan funds, Ven- PDF in AMIS. Historic Fiscal Years. ture capital funds, and other non-Insured Depository Institu- tions. Management Letters for the Applicant’s Most Recent Historic Fiscal FA Applicants: Loan funds, Ven- PDF in AMIS. Year. ture capital funds, and other non-Insured Depository Institu- tions. TA Applicants: If available ...... The Management Letter is prepared by the Applicant’s auditor and is a communication on internal control over financial reporting, compli- ance, and other matters. The Management Letter contains the audi- tor’s findings regarding the Applicant’s accounting policies and pro- cedures, internal controls, and operating policies, including any ma- terial weaknesses, significant deficiencies, and other matters identi- fied during auditing. The Management Letter may include sugges- tions for improving on identified weaknesses and deficiencies and/or best practice suggestions for items that may not be considered to be weaknesses or deficiencies. The Management Letter may also include items that are not required to be disclosed in the annual Au- dited Financial Statements. The Management Letter is distinct from the auditor’s Opinion Letter, which is required by Generally Accept- ed Accounting Principles (GAAP). Management Letters are not re- quired by GAAP, and are sometimes provided by the auditor as a separate letter from the Audit itself. Statement(s) in Lieu of Management Letter for Applicant’s Most Re- FA Applicants: Loan funds and PDF in AMIS. cent Historic Fiscal Year Issued from Board Treasurer or other other non-Insured Depository In- Board member using template provided in application materials (re- stitutions. quired only if Management Letters are not available for Audited Fi- TA Applicants: If available ...... nancial Statements). Unaudited Financial Statements for Applicant’s Three Most Recent TA Applicants: Loan funds, ven- PDF in AMIS. Historic Years (if Audited Financial Statements are not available). ture capital funds, and other non-Insured Depository Institu- tions. Current Year to Date—December 31, 2017 Unaudited Financial State- FA and TA Applicants: Loan PDF in AMIS. ments. funds, venture capital funds, and other non-Insured Depository In- stitutions. Community Partnership Agreement ...... FA Applicants, if applicable ...... PDF or Word document in AMIS. Matching Funds Breakout Table Excel Workbook ...... FA Core Applicants ...... Excel in AMIS. Call Reports for each fiscal year reported in the Retained Earnings FA Core Applicants: Insured De- PDF in AMIS. Calculator. pository Institutions that are using Retained Earnings as matching funds only.

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TABLE 10—REQUIRED APPLICATION DOCUMENTS—Continued

Application documents Applicant type Submission format

Equity Investment Matching Funds Documentation ...... FA Core Applicants: For-profit PDF or Word document in AMIS. CDFIs that are using an Equity Investment(s) as matching funds only.

C. Application Submission: The CDFI Applicant that has previously registered E. System for Award Management Fund has a two-step process that with Grants.gov must verify that its (SAM): Any entity applying for Federal requires the submission of application registration is current and active. grants or other forms of Federal documents on separate deadlines and Applicants should contact Grants.gov financial assistance through Grants.gov locations. The SF–424 must be directly with questions related to the must be registered in SAM before submitted through Grants.gov and all registration or submission process as the submitting its Application. Registration other application documents through CDFI Fund does not maintain the in SAM is required as part of the the AMIS portal. The CDFI Fund will Grants.gov system. Grants.gov registration process. The not accept Applications via email, mail, Each Application must be signed by a SAM registration process can take two facsimile, or other forms of designated Authorized Representative weeks or longer to complete. Applicants communication, except in extremely in AMIS before it can be submitted. without DUNS and/or EIN numbers rare circumstances that have been pre- should allow for additional time as an Applicants must ensure that an approved by the CDFI Fund. Applicants Applicant cannot register in SAM Authorized Representative is authorized are only required to submit the OMB without those required numbers. to sign legal documents on behalf of the SF–424, Application for Federal Applicants that have previously organization. Consultants working on Assistance form in Grants.gov. All other completed the SAM registration process behalf of the organization cannot be application information (listed in Table must verify that their SAM accounts are designated as Authorized 10) will be submitted through AMIS. current and active. Each Applicant must Representatives. Only a designated The deadline for submitting the SF–424 continue to maintain an active SAM Authorized Representative or is listed in Tables 1 and 11. registration with current information at Application Point of Contact, included All Applicants must register in the all times during which it has an active in the Application, may submit the Grants.gov system to successfully Federal award or an Application under Application in AMIS. If an Authorized submit the SF–424. The Grants.gov consideration by a Federal awarding Representative or Application Point of registration process can take 30 days or agency. The CDFI Fund will not Contact does not submit the application, longer to complete and the CDFI Fund consider any Applicant that fails to the application will be deemed strongly encourages Applicants to start properly register or activate its SAM ineligible. the Grants.gov registration process as account and, as a result, is unable to soon as possible (refer to the following D. Dun & Bradstreet Universal submit the SF–424 in Grants.gov or link: http://www.grants.gov/web/grants/ Numbering System (DUNS): Pursuant to Application in AMIS by the applicable register.html). Since the Grants.gov the Uniform Requirements, each Application deadlines. These registration process requires Applicants Applicant must provide as part of its restrictions also apply to organizations to have DUNS and EIN numbers, Application submission, a Dun and that have not yet received a DUNS or Applicants without these required Bradstreet Universal Numbering System EIN number. Applicants must contact numbers should allow for additional (DUNS) number. Applicants without a SAM directly with questions related to time to complete the Grants.gov DUNS number will not be able to registration or SAM account changes as registration process. The CDFI Fund register and submit an Application in the CDFI Fund does not maintain this will not extend the application deadline the Grants.gov system. Allow sufficient system and has no ability to make to any Applicant that started the time for Dun & Bradstreet to respond to changes or correct errors of any kind. Grants.gov registration process but did inquiries and/or requests for DUNS For more information about SAM, visit not complete it by the deadline. An numbers. https://www.sam.gov.

TABLE 11—GRANTS.GOV REGISTRATION TIMELINE SUMMARY

Estimated minimum Step Agency time to complete

Obtain a DUNS number ...... Dun & Bradstreet ...... One (1) Week .* Obtain an EIN Number ...... Internal Revenue Service (IRS) ...... Two (2) Weeks .* Register in SAM.gov ...... System for Award Management (SAM.gov) ...... Two (2) Weeks .* Register in Grants.gov ...... Grants.gov ...... One (1) Week .** *Applicants are advised that the stated durations are estimates only and represent minimum timeframes. Actual timeframes may take longer. The CDFI Fund will not consider any Applicant that fails to properly register or activate its SAM account, has not yet received a DUNS or EIN number, and/or fails to properly register in Grants.gov. ** This estimate assumes an Applicant has a DUNS number, an EIN number, and is already registered in SAM.gov.

F. Submission Dates and Times: 1. Submission Deadlines: The deadlines for the FY 2018 Funding following table provides the critical Round.

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TABLE 12—FY 2018 FUNDING ROUND CRITICAL DEADLINES FOR APPLICANTS

Time Description Deadline Eastern Time (ET) Submission method

Last day to contact Certification, Compliance February 28, 2018 ...... 11:59 p.m...... Service Request via AMIS. Monitoring and Evaluation (CCME) staff re- garding CDFI Certification. CDFI certification applications ...... March 2, 2018 ...... 11:59 p.m...... Electronically via AMIS. Create AMIS Account (New Applicants) ...... March 2, 2018 ...... AMIS. SF424 (Application for Federal Assistance) .... March 2, 2018 ...... 11:59 p.m...... Electronically via Grants.gov. Last day to contact CDFI Program staff ...... April 2, 2018 ...... 5:00 p.m...... Service Request via AMIS Or CDFI Fund Helpdesk: 202–653–0421. CDFI Program Application for FA or TA ...... April 4, 2018 ...... 11:59 p.m...... Electronically via AMIS.

2. Confirmation of Application quality and accuracy of the information not consider a late submission of the Submission in Grants.gov and AMIS: and attachments included in the SF–424 or the Application that was a Applicants are required to submit the Application submitted in AMIS. The direct result of a delay in a Federal OMB SF–424, Application for Federal CDFI Fund strongly encourages the Government process, unless such delay Assistance through the Grants.gov Applicant to allow sufficient time to was the result of a Federal government system, under the CDFI Program confirm the Application content, review administrative or technological error. Funding Opportunity Number. All other the material submitted, and remedy any a. SF–424 Late Submission: In cases required application materials must be issues prior to the Application deadline. where a Federal government submitted through the AMIS website. Each Application must be signed by an administrative or technological error Application materials submitted Authorized Representative in AMIS directly resulted in a late submission of through both systems are due by the before it can be submitted. Applicants the SF–424, the Applicant must submit applicable deadlines. Applicants must must ensure that an Authorized a written request for acceptance of late submit the SF–424 on an earlier Representative is authorized to sign SF–424 submission and include deadline from the other required legal documents on behalf of the documentation of the error no later than application materials in AMIS. If the organization. Consultants working on two business days after the SF–424 SF–424 is not successfully accepted by behalf of the organization may not be deadline. The CDFI Fund will not Grants.gov by the deadline, the CDFI designated as Authorized respond to request for acceptance of late Fund will not review any of the material Representatives. Only an Authorized SF–424 submissions after that time submitted in AMIS, and the Application Representative or an Application Point period. Applicants must submit late SF– will be deemed ineligible. of Contact can submit the Application. 424 submission requests to the CDFI a. Grants.gov Submission Information: If an Authorized Representative or Fund via an AMIS service request to the Each Applicant will receive an email Application Point of Contact does not CDFI Program with a subject line of from Grants.gov immediately after submit the application, the application ‘‘Late SF–424 Submission Request.’’ b. Application Late Submission: In submitting the SF–424 confirming that will be deemed ineligible. Applicants cases where a Federal government the submission has entered the can only submit one Application. Upon administrative or technological error Grants.gov system. This email will submission, the Application will be directly resulted in a late submission of contain a tracking number for the locked and cannot be resubmitted, the Application in AMIS, the Applicant submitted SF–424. Within 48 hours, the edited, or modified in any way. The must submit a written request for Applicant will receive a second email, CDFI Fund will not unlock or allow acceptance of late Application which will indicate if the submitted SF– multiple Application submissions. submission and include documentation 424 was either successfully validated or 3. Late Submission: The CDFI Fund of the error no later than two business rejected with errors. However, will not accept an Application if the days after the Application deadline. The Applicants should not rely on the email SF–424 is not submitted and accepted CDFI Fund will not respond to request notification from Grants.gov to confirm by Grants.gov by the deadline. for acceptance of late Application that their SF–424 was validated. Additionally, the CDFI Fund will not submissions after that time period. Applicants are strongly encouraged to accept an Application if it is not signed Applicants must submit late use the tracking number provided in the by an Authorized Representative and Application submission requests to the first email to closely monitor the status submitted in AMIS by the deadline. In CDFI Fund via an AMIS service request of their SF–424 by contacting the either case, the CDFI Fund will not to the CDFI Program with a subject line helpdesk at Grants.gov directly. The review any material submitted, and the of ‘‘Late Application Submission Application material submitted in AMIS Application will be deemed ineligible. Request.’’ is not officially accepted by the CDFI However, in cases where a Federal G. Funding Restrictions: FA, PPC–FA, Fund until Grants.gov has validated the government administrative or DF–FA, HFFI–FA and TA awards are SF–424. technological error directly resulted in a limited by the following: b. AMIS Submission Information: late submission of the SF–424 or the 1. FA awards: AMIS is a web-based portal where Application, Applicants are provided a. A Recipient shall use FA funds Applicants will directly enter their two opportunities to submit a written only for the eligible activities described application information and add the request for acceptance of late in Section II.(C)(1) of this NOFA and its required attachments listed in Table 10. submissions. The CDFI Fund does not Assistance Agreement. AMIS will verify that the Applicant consider a delay in any Federal b. A Recipient may not distribute FA provided the minimum information government process to constitute a funds to an Affiliate, Subsidiary, or any required to submit an Application. Federal government administrative or other entity, without the CDFI Fund’s Applicants are responsible for the technological error. The CDFI Fund will prior written approval.

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c. FA funds shall only be paid to the of 1933, 41 U.S.C. 8301–8303, with viability of each Application using Recipient. respect to any Direct Costs. financial information provided by the d. The CDFI Fund, in its sole 3. TA grants: Applicant. The CDFI Fund will also discretion, may pay FA funds in a. A Recipient shall use TA funds evaluate the compliance risk of each amounts, or under terms and only for the eligible activities described Application using information provided conditions, which are different from in Section II. (C) (3) of this NOFA and in the Application. those requested by an Applicant. its Assistance Agreement. For the financial health analysis, each e. The Recipient must comply, as b. A Recipient may not distribute TA Application will receive a Total applicable, with the Buy American Act funds to an Affiliate, Subsidiary or any Financial Composite Score on a scale of of 1933, 41 U.S.C. 8301–8303, with other entity, without the CDFI Fund’s one (1) to five (5), with one (1) being the respect to any Direct Costs. prior written consent. highest rating. The Total Financial 2. PPC–FA awards: c. TA funds shall only be paid to the Composite Score is based on the a. A Recipient shall use PPC–FA Recipient. analysis of twenty-four (24) financial funds only for the eligible activities d. The CDFI Fund, in its sole indicators. Applications will be grouped described in Section II. (C)(5) of this discretion, may pay TA funds in based on the Total Financial Composite NOFA and its Assistance Agreement. amounts, or under terms and Score. Applicants must receive a Total b. A Recipient may not distribute conditions, which are different from Financial Composite Score of one (1), PPC–FA funds to an Affiliate, those requested by an Applicant. two (2), or three (3) to advance to Step Subsidiary, or any other entity, without e. The Recipient must comply, as 3. Applicants that receive an initial the CDFI Fund’s prior written approval. applicable, with the Buy American Act Total Financial Composite Score of four c. PPC–FA funds shall only be paid to of 1933, 41 U.S.C. 8301–8303, with (4) or five (5) will be re-evaluated and the Recipient. respect to any Direct Costs. re-scored by CDFI Fund staff. If the d. The CDFI Fund, in its sole V. Application Review Information Total Financial Composite Score discretion, may pay PPC–FA funds in remains four (4) or five (5) after CDFI amounts, or under terms and A. Criteria: If the Applicant has Fund staff review, the Applicant will conditions, which are different from submitted an eligible Application, the not advance to Step 3. those requested by an Applicant. CDFI Fund will conduct a substantive For the compliance analysis, the CDFI e. The Recipient must comply, as review in accordance with the criteria Fund will evaluate the compliance risk applicable, with the Buy American Act and procedures described in the of each Application using information of 1933, 41 U.S.C. 8301–8303, with Regulations, this NOFA, the Application provided in the Application. Each respect to any Direct Costs. guidance, and the Uniform Application will receive a Total 3. DF–FA awards: Requirements. The CDFI Fund reserves Compliance Composite Score on a scale a. A Recipient shall use DF–FA funds the right to contact the Applicant by of one (1) to five (5), with one (1) being only for the eligible activities described telephone, email, or mail for the the highest rating. Applicants must in Section II. (C)(2) of this NOFA and its purpose of clarifying or confirming receive a Total Compliance Composite Assistance Agreement. Application information. If contacted, Score of one (1), two (2), or three (3) to b. A Recipient may not distribute DF– the Applicant must respond within the advance to Step 3. Applicants that FA funds to an Affiliate, Subsidiary, or time period communicated by the CDFI receive an initial Total Compliance any other entity, without the CDFI Fund or risk that its Application will be Composite Score of four (4) or five (5) Fund’s prior written approval. rejected. The CDFI Fund will review the will be re-evaluated and re-scored by c. DF–FA funds shall only be paid to FA, DF–FA, PPC–FA, HFFI–FA, and TA CDFI Fund Staff. If the Total the Recipient. Applications according the below Compliance Composite Score remains d. The CDFI Fund, in its sole process. four (4) or five (5) after CDFI Staff discretion, may pay DF–FA funds in 1. Financial Assistance (FA) review, the Applicant will not advance amounts, or under terms and Application Scoring, Award Selection, to Step 3. conditions, which are different from Review, and Selection Process: The c. Step 3: Business Plan Review: those requested by an Applicant. CDFI Fund will evaluate each Applicants that proceed to Step 3 will e. The Recipient must comply, as Application using a five step review be evaluated on the soundness of each applicable, with the Buy American Act process illustrated in the sections Applicant’s comprehensive business of 1933, 41 U.S.C. 8301–8303, with below. Applicants that meet the plan. Two external non-CDFI Fund respect to any Direct Costs. minimum criteria will advance to the Reviewers will conduct the Step 3 2. HFFI–FA awards: next step in the review process. evaluation. Reviewers will evaluate the a. A Recipient shall use HFFI–FA Applicants applying as a Community Application sections listed in Table 13. funds only for the eligible activities Partnership must describe partnership All Applications will be reviewed in described in Section II. (C)(4) of this in the Application pursuant to the accordance with standard reviewer NOFA and its Assistance Agreement. requirements set forth in Table 8 and evaluation materials for the business b. A Recipient may not distribute will be evaluated in accordance with the plan review. Applications will be HFFI–FA funds to an Affiliate, review process described below. ranked based on Total Business Plan Subsidiary, or any other entity, without a. Step 1: Eligibility Review: The CDFI Scores, in descending order. In order to the CDFI Fund’s prior written approval. Fund will evaluate each Application to advance to Step 4, Applicants must c. HFFI–FA funds shall only be paid determine its eligibility status per receive a Total Business Plan Score that to the Recipient. Section III. Eligibility Information of is either (1) equal to receiving a point d. The CDFI Fund, in its sole this NOFA. score equivalent to a ‘‘Good’’ out of a discretion, may pay HFFI–FA funds in b. Step 2: Financial Analysis and ranking scale in descending order of amounts, or under terms and Compliance Evaluation: Step 2 contains Excellent, Good, Fair, Limited or Poor, conditions, which are different from two main components: financial health in each section listed in Table 13 or (2) those requested by an Applicant. analysis and compliance risk within the top 60 percent of the CORE e. The Recipient must comply, as evaluation. The CDFI Fund will applicant pool for CORE applicants or applicable, with the Buy American Act evaluate the financial health and within the top 70 percent of the SECA

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applicant pool for SECA applicants, Total Business Plan Scores that would Step 4, all Applicants with the same whichever is greater. In the case of tied prevent an Applicant from moving to score will progress to Step 4.

TABLE 13—STEP 3: FA BUSINESS PLAN REVIEW SCORING CRITERIA

Possible FA application sections score Score needed to advance

Executive Summary ...... Not Scored N/A. Business Strategy ...... 12 N/A. Market and Competitive Analysis ...... 7 N/A. Products and Services ...... 12 N/A. Management and Track Record ...... 12 N/A. Growth and Projections ...... 7 N/A.

Total Business Plan Score ...... 50 CORE Applicants: Within Top 60 percent of all CORE Appli- cant Step 3 Scores. SECA Applicants: Within Top 70 percent of all SECA Appli- cant Step 3 Scores.

d. Step 4: Policy Objective Review: includes an analysis of programmatic Review Score. Each Applicant will be The CDFI Fund internal reviewers will risk factors including, but not limited to: evaluated in each of the categories, evaluate each Application to determine history of performance in managing which will result in a Total Policy its ability to meet policy objectives of Federal awards (including timeliness of Objective Review Composite Score on a the CDFI Fund authorizing statute. The reporting and compliance); reports and scale of one (1) to five (5), with one (1) policy objectives considered in this findings from audits; and the being the highest score. Applicants are evaluation are listed in Table 14 below. Applicant’s ability to effectively then grouped according to Total Policy The CDFI Fund also conducts a due implement Federal requirements, which Objective Review Scores. diligence review for Applications that could impact the Total Policy Objective

TABLE 14—STEP 4: FA POLICY REVIEW SCORING CRITERIA

Score needed to Section Possible scores High score advance

Economic Distress ...... 1, 2, 3, 4, or 5 ...... 1 N/A. Economic Opportunities ...... 1, 2, 3, 4, or 5 ...... 1 N/A. Partnerships ...... 1, 2, 3, 4, or 5 ...... 1 N/A.

Total Policy Objective Review Composite 1, 2, 3, 4, or 5 ...... 1 All Scores Advance. Score.

e. Step 5: Award Amount reviewers will evaluate each HFFI–FA not limited to, financial stability, quality Determination: The CDFI Fund Application associated with a FA of management systems and ability to determines an award amount for each application that progresses to Step 4 of meet award management standards, Application based on the Step 4 Total the FA Application review process. history of performance in managing Policy Objective Review Score, the Reviewers will evaluate the Application Federal awards (including timeliness of Applicant’s request amount, and on sections listed in Table 15 and assign a reporting and compliance), reports and certain variables, including but not Total HFFI- FA Score up to 25 points. findings from audits, and the limited to, an Applicant’s deployment All Applications will be reviewed in Applicant’s ability to effectively track record, minimum award size, and accordance with standard reviewer implement Federal requirements. funding availability. Award amounts evaluation materials. Applications will Award amounts may be reduced from may be reduced from the requested be ranked based on total scores, in the requested award amount as a result award amount as a result of this descending order. Applicants that fail to of this analysis. The CDFI Fund may analysis. Lastly, the CDFI Fund may receive an FA award will not be reduce awards sizes from requested consider the geographic diversity of considered for a HFFI–FA award. amounts based on certain variables, Applicants when making its funding The CDFI Fund conducts additional including an Applicant’s loan decisions. levels of due diligence for Applications disbursement activity, total portfolio 2. Healthy Food Financing Initiative– that are in scoring contention for an outstanding, and similar factors. Lastly, FA (HFFI–FA) Application Scoring, HFFI–FA award. This due diligence the CDFI Fund may consider the Award Selection, Review, and Selection includes an analysis of programmatic geographic diversity of Applicants when Process: Two external non-CDFI Fund and financial risk factors including, but making its funding decisions.

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TABLE 15—STEP 3 HFFI–FA APPLICATION SCORING CRITERIA

HFFI–FA HFFI–FA narrative sections applicants (points)

HFFI Target Market Profile ...... 4 Healthy Food Financial Products ...... 5 Healthy Food Development Services ...... 2 Projected HFFI–FA Activities ...... 7 HFFI Track Record, Management Capacity for Providing Healthy Food Financing, Healthy Food Financing Outcomes ...... 7

Total HFFI–FA Score ...... 25

3. Persistent Poverty Counties— Applicants that have received prior reviewer evaluation materials. Financial Assistance (PPC–FA) awards from the CDFI Fund, minimum Applicants that fail to receive an FA Application Scoring, Award Selection, award size, and funding availability. award will not be considered for a DF– Review, and Selection Process: 4. Disability Funds-Financial FA award. Award amounts will be Application requests for PPC–FA Assistance (DF–FA) Application determined on the basis of the Total awards are not scored. A CDFI Fund Scoring, Award Selection, Review, and DF–FA Score, the Applicant’s requested internal reviewer will evaluate the PPC– Selection Process: A CDFI Fund internal amount, and on certain variables, FA request of each associated FA reviewer will evaluate each DF–FA including but not limited to, an Applicant that has advanced to the Step Application associated with a FA Applicant’s deployment track record, 4 review process. PPC–FA award application progresses to Step 4 of the minimum award size, and funding amounts will be determined based on FA Application review process. The availability. The CDFI Fund will make the total number of eligible Applicants reviewer will evaluate the Application awards to the highest scoring applicants and funding availability, the Applicant’s and assign a Total DF- FA Score on a first. Award amounts may be reduced requested amount, and on certain scale of one (1) to five (5), with one (1) from the requested award amount as a variables, including but not limited to, being the highest score. Applicants are result of this analysis. The DF–FA an Applicant’s deployment track record, then grouped according to Total DF- FA award is evaluated independently from historical track record of deployment in Score. All Applications will be the FA award and will not affect the FA Persistent Poverty Counties for reviewed in accordance with standard award evaluation or size.

TABLE 16—STEP 3 DF–FA APPLICATION SCORING CRITERIA

Section Possible scores High score

DF–FA Narrative Questions ...... 1, 2, 3, 4, or 5 ...... 1

Total DF–FA Score ...... 1, 2, 3, 4, or 5 ...... 1

5. Technical Assistance (TA) components in order to be considered the Applicant’s demonstrated capability Application Scoring, Award Selection, for an award. Emerging CDFI or and plan to achieve CDFI certification Review, and Selection Process: The Certifiable CDFI Applicants must within three years, or if a prior awardee, CDFI Fund will evaluate each achieve a minimum score of 35 points the certification performance goal and Application to determine its eligibility in Section I to be considered for an measure stated in its prior Assistance pursuant to Section III. Eligibility award and to be reviewed in Section II. Agreement. An Applicant that is an Information of this NOFA. If the An Applicant that is a Certified CDFI Emerging CDFI and Certifiable CDFI Application meets the eligibility will be evaluated on the demonstrated will also be evaluated on its criteria, the CDFI Fund will evaluate need for TA funding to build the CDFI’s demonstrated need for TA funding to each TA Application using standard capacity, further the Applicant’s build the CDFI’s capacity and further its scoring criteria in the Business Plan strategic goals, and achieve impact strategic goals. Review (Table 17). An Applicant must within the Applicant’s Target Market. The CDFI Fund will score each part receive a minimum Total TA Business An Applicant that is an Emerging CDFI of the TA Business Plan Review as Plan Score of 60 points for the TA or Certifiable CDFI will be evaluated on indicated in Table 17.

TABLE 17—TA BUSINESS PLAN REVIEW SCORING CRITERIA

Emerging CDFI TA application sections or Certifiable Certified CDFI CDFI (points) (points)

Section I: Primary Mission ...... 15 N/A Financing Entity ...... 15 N/A Target Market ...... 15 N/A Accountability ...... 15 N/A

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TABLE 17—TA BUSINESS PLAN REVIEW SCORING CRITERIA—Continued

Emerging CDFI TA application sections or Certifiable Certified CDFI CDFI (points) (points)

Development Services ...... 15 N/A Section II: Organization Overview ...... 5 20 Management and Staff ...... 5 20 Community Coordination ...... 5 20 Financial Performance ...... 5 20 Organizational Impact ...... 5 20

Total TA Business Plan Score ...... 100 100

Each TA Application will be Depository Institution Holding Fund’s evaluation or scoring of an evaluated by one internal CDFI Fund Company, the CDFI Fund will consider Application; or indicates fraud or reviewer. Internal reviewers must information provided by the mismanagement on the Applicant’s part. complete the CDFI Fund’s conflict of Appropriate Federal or State Banking If the CDFI Fund determines any interest process. The CDFI Fund’s Agencies about both the CDFI portion of the Application is incorrect application conflict of interest policy is Depository Institution Holding in a material respect, the CDFI Fund located on the CDFI Fund’s website. All Company and the Subsidiary CDFI reserves the right, in its sole discretion, Applications will be reviewed in Certified Insured Depository Institution to reject the Application. The CDFI accordance with CDFI Fund standard that will expend and carry out the Fund reserves the right to change its reviewer evaluation materials for the award. If the Appropriate Federal or eligibility and evaluation criteria and Business Plan Review. Applications will State Agency identifies safety and procedures, if the CDFI Fund deems it be ranked based on Total TA Business soundness concerns, the CDFI Fund will appropriate. If the changes materially Plan Score, in descending order. In the assess whether the concerns cause or affect the CDFI Fund’s award decisions, case of tied scores that would prohibit will cause the Applicant to be incapable the CDFI Fund will provide information the Application from progressing to the of undertaking the activities for which about the changes through its website. next level of review, Certified funding has been requested. The CDFI Fund’s award decisions are Applicants will be ranked first 7. Non-Regulated Institutions: In final, and there is no right to appeal the according to each Organization accordance with the CDFI Program’s decisions. Overview score, and Emerging CDFI and authorizing statute and regulations, the D. External Non-CDFI Fund Certifiable CDFI Applicants will be CDFI Fund must ensure, to the Reviewers: All external non-CDFI Fund ranked first according to the total maximum extent practicable, that reviewers are selected based on criteria Section I score. recipients which are non-regulated that includes a professional background The CDFI Fund conducts additional CDFIs are financially and managerially in community and economic levels of due diligence for Applications sound, and maintain appropriate development finance, and experience that are in scoring contention for an internal controls (12 U.S.C. 4707(f)(1)(A) reviewing the financial statements of all award. This due diligence includes an and 12 CFR 1805.800(b)). Further, the CDFI institution types. Reviewers must analysis of programmatic and financial CDFI Fund must determine that an complete the CDFI Fund’s conflict of risk factors including, but not limited to, Applicant’s capacity to operate as a interest process and be approved by the financial stability, history of CDFI and its continued viability will not CDFI Fund. The CDFI Fund’s performance in managing Federal be dependent upon assistance from the application reader conflict of interest awards (including timeliness of CDFI Fund (12 U.S.C. 4704(b)(2)(A)). If policy is located on the CDFI Fund’s reporting and compliance), reports and it is determined the Applicant is website. findings from audits, and the incapable of meeting these VI. Federal Award Administration Applicant’s ability to effectively requirements, the CDFI Fund reserves Information implement Federal requirements. The the right to deem the Applicant CDFI Fund will also evaluate the ineligible or terminate the award. A. Award Notification: Each Applicant’s ability to meet certification B. Anticipated Award Announcement: successful Applicant will receive an criteria of being a legal entity and a non- The CDFI Fund anticipates making CDFI email ‘‘notice of award’’ notification government entity. Award amounts may Program award announcements after from the CDFI Fund stating that its be reduced as a result of this analysis in September 10, 2018 and before Application has been approved for an addition to consideration of the September 30, 2018. award. Each Applicant not selected for eligibility of an Applicant’s funding C. Application Rejection: The CDFI an award will receive an email stating request and similar factors. Lastly, the Fund reserves the right to reject an that a debriefing notice has been CDFI Fund may consider the geographic Application if information (including provided in its AMIS account. diversity of Applicants when making its administrative errors) comes to the CDFI B. Assistance Agreement: Each funding decisions. Fund’s attention that: Adversely affects Applicant selected to receive an award 6. Insured Depository Institutions: The an Applicant’s eligibility for an award; must enter into an Assistance CDFI Fund will consider safety and adversely affects the Recipient’s Agreement with the CDFI Fund in order soundness information from the certification as a CDFI (to the extent that to receive a payment(s). The Assistance Appropriate Federal or State Banking the award is conditional upon CDFI Agreement will set forth the award’s Agency. If the Applicant is a CDFI certification); adversely affects the CDFI terms and conditions, including but not

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be limited to the: (i) Award amount; (ii) an initial payment of FA or TA may be information (including administrative award type; (iii) award uses; (iv) eligible made. FA Recipients that are subject to errors) comes to the CDFI Fund’s use of funds; (v) performance goals and the matching funds requirement will not attention that: adversely affects the measures; and (vi) reporting receive a payment until 100 percent of Recipient’s eligibility for an award; requirements. FA Assistance their matching funds are In-Hand. The adversely affects the Recipient’s Agreements have three-year periods of first payment is the estimated amount of certification as a CDFI (to the extent that performance. TA Assistance Agreements award that the Recipient states in its the award is conditional upon CDFI have two-year periods of performance Application that it will use for eligible certification); adversely affects the CDFI for Certified CDFIs and three-year FA or TA activities in the first 12 Fund’s evaluation of the Application; periods of performance for Emerging months after the award. The CDFI Fund indicates that the Recipient is not in CDFIs or Certifiable CDFIs. reserves the right to increase the first compliance with any requirement listed 1. Certificate of Good Standing: All payment amount on any award to FA and TA Recipients that are not ensure that any subsequent payments the Uniform Requirements; or indicates Insured Depository Institutions will be are greater than $25,000 for FA and fraud or mismanagement on the required to provide the CDFI Fund with $5,000 for TA awards. Recipient’s part, the CDFI Fund may, in a certificate of good standing from the The CDFI Fund will minimize the its discretion and without advance secretary of state for the Recipient’s time between the Recipient incurring notice to the Recipient, terminate the jurisdiction of formation prior to costs for eligible activities and award award or take such other actions as it closing. This certificate can often be payment in accordance with the deems appropriate. The CDFI Fund acquired online on the secretary of state Uniform Requirements. The advanced reserves the right, in its sole discretion, website for the Recipient’s jurisdiction payments for eligible activities will to rescind an award if the Recipient fails of formation and must generally be occur no more than one year in advance to return the Assistance Agreement, dated within 180 days prior to the date of the Recipient incurring costs for the signed by the authorized representative the Recipient executes the Assistance eligible activities. Following the initial of the Recipient, and/or provide the Agreement. Due to potential backlogs in closing, there may be subsequent CDFI Fund with any other requested state government offices, Applicants are closings involving additional award documentation, within the CDFI Fund’s advised to submit requests for payments. Any documentation in deadlines. certificates of good standing no later addition to the Assistant Agreement that than 60 days after they submit their is connected with such subsequent In addition, the CDFI Fund reserves Applications. closings and payments shall be properly the right, in its sole discretion, to 2. Closing: Pursuant to the Assistance executed and timely delivered by the terminate and rescind the Assistance Agreement, there will be an initial Recipient to the CDFI Fund. Agreement and the award made under closing at which point the Assistance 3. Requirements Prior to Entering into this NOFA pending the criteria Agreement and related documents will an Assistance Agreement: If, prior to described in the following table: be properly executed and delivered, and entering into an Assistance Agreement,

TABLE 18—REQUIREMENTS PRIOR TO EXECUTING AN ASSISTANCE AGREEMENT

Requirement Criteria

Failure to meet reporting require- • If a Recipient received a prior award under any CDFI Fund program and is not current with the reporting ments. requirements of the previously executed agreement(s), the CDFI Fund may delay entering into an As- sistance Agreement or disbursing an award until reporting requirements are met. • If such a Recipient is unable to meet the requirement within the timeframe specified, the CDFI Fund may terminate and rescind the Assistance Agreement and the award made under this NOFA. • The automated systems the CDFI Fund uses only acknowledge a report’s receipt and it not a determina- tion of meeting reporting requirements. Failure to maintain CDFI Certifi- • An FA Recipient must be a Certified CDFI prior to entering into an Assistance Agreement. cation. • If an FA Recipient fails to maintain CDFI Certification, the CDFI Fund will terminate and rescind the As- sistance Agreement and the award made under this NOFA. Pending resolution of noncompli- • The CDFI Fund will delay entering into an Assistance Agreement with a Recipient that has pending non- ance. compliance issues with any of its previously executed CDFI award agreement(s), if the CDFI Fund has not yet made a final compliance determination. • If the Recipient is unable to satisfactorily resolve the compliance issues, the CDFI Fund may terminate and rescind the Assistance Agreement and the award made under this NOFA. Noncompliance status ...... • If, at any time prior to entering into an Assistance Agreement, the CDFI Fund determines that a Recipi- ent is noncompliant with any previously executed CDFI award agreement(s) and the CDFI Fund has pro- vided written notification that the Recipient is ineligible to apply for or receive any future awards or allo- cations for a time period specified by the CDFI Fund in writing, the CDFI Fund may delay entering into an Assistance Agreement until the Recipient has cured the default by taking actions the CDFI Fund has specified within the specified timeframe. If the Recipient is unable to meet the cure requirement within the specified timeframe, the CDFI Fund may terminate and rescind the Assistance Agreement and the award made under this NOFA. Compliance with Federal civil rights • If prior to entering into an Assistance Agreement under this NOFA, the Recipient receives a final deter- requirements. mination, made within the last three years, in any proceeding instituted against the Recipient in, by, or before any court, governmental, or administrative body or agency, declaring that the Recipient has vio- lated the following laws: Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. § 2000d); Sec- tion 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); the Age Discrimination Act of 1975, (42 U.S.C. 6101–6107), and Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, the CDFI Fund will terminate and rescind the Assistance Agreement and the award made under this NOFA.

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TABLE 18—REQUIREMENTS PRIOR TO EXECUTING AN ASSISTANCE AGREEMENT—Continued

Requirement Criteria

Do Not Pay ...... • The Do Not Pay Business Center was developed to support Federal agencies in their efforts to reduce the number of improper payments made through programs funded by the Federal government. • The CDFI Fund reserves the right, in its sole discretion, to rescind an award if the Recipient is identified as an ineligible recipient in the Do Not Pay database. Safety and soundness ...... • If it is determined the Recipient is, or will be, incapable of meeting its award obligations, the CDFI Fund will deem the Recipient to be ineligible, or require it to improve safety and soundness conditions prior to entering into an Assistance Agreement.

C. Reporting performance, the CDFI Fund may collect including, but not limited to, an Annual 1. Reporting requirements: On an information from each Recipient Report with the following components: annual basis for the period of

TABLE 19—ANNUAL REPORTING REQUIREMENTS

Financial Statement Audit Report A Non-profit Recipient must submit a Financial Statement Audit (FSA) report in AMIS, along with the Re- (Non-profit Recipient). cipient’s statement of financial condition audited or reviewed by an independent certified public account- ant, if any are prepared. Under no circumstances should this be construed as the CDFI Fund requiring the Recipient to conduct or arrange for additional audits not otherwise required under Uniform Requirements or otherwise prepared at the request of the Recipient or parties other than the CDFI Fund. Financial Statement Audit Report For-profit Recipients must submit a Financial Statement Audit report in AMIS, along with a statement of fi- (For-Profit Recipient). nancial condition audited or reviewed by an independent certified public accountant. Single Audit Report (if applicable) If a Recipient is required to complete a Single Audit Report, it should be submitted to the Federal Audit (or similar report). Clearinghouse (see 2 CFR Subpart F—Audit Requirements in the Uniform Requirements) and AMIS (op- tional). For-profit Recipients are required to complete and submit a similar report directly to the CDFI Fund. Institution Level Report (ILR) ...... The ILR is a report used to collect compliance and performance data from CDFI Fund Recipients. The ILR is submitted through AMIS and captures organizational information, financial position, lending and invest- ing activities, community development outputs, and development services. • A CDFI Subsidiary Insured Depository Institution that receives a transfer of any portion of an FA award from a CDFI Depository Institution Holding Company Recipient must also submit an ILR. Transaction Level Report (TLR) ..... The TLR is a report used to collect compliance and performance data from CDFI Fund Recipients. The TLR is submitted through AMIS and captures data on each individual loan and investment in the Recipi- ent’s portfolio. • A CDFI Subsidiary Insured Depository Institutions that receives a transfer of any portion of an FA award from a CDFI Depository Institution Holding Company Recipient must also submit a TLR. • The TLR is not required for TA Recipients. Federal Financial Report/OMB If the Recipient receives a TA award, it must submit the Federal Financial Report/OMB Standard Form 425 Standard Form 425. via AMIS. Uses of Award Report ...... If the Recipient receives an FA or TA award, it must submit the Uses of Award Report via AMIS. Shareholders Report ...... If the Assistance is in the form of an Equity Investment, the Recipient must submit shareholder information to the CDFI Fund showing the class, series, number of shares and valuation of capital stock held or to be held by each shareholder. The Shareholder Report must be submitted for as long as the CDFI Fund is an equity holder. Performance Progress Report ...... If the Recipient receives an FA or TA award, it must submit information on the status of compliance with the performance goals and measures via AMIS.

Each Recipient is responsible for the however, such reporting requirements statutes, regulations, and the terms and timely and complete submission of the will be modified only after notice to conditions of the Federal award. Annual Reporting requirements. The Recipients. The cost principles used by CDFI Fund reserves the right to contact 2. Financial Management and Recipients must be consistent with the Recipient and additional entities or Accounting: The CDFI Fund will require Federal cost principles and support the signatories to the Assistance Agreement Recipients to maintain financial accumulation of costs as required by the to request additional information and management and accounting systems principles, and must provide for documentation. The CDFI Fund will use that comply with Federal statutes, adequate documentation to support such information to monitor each regulations, and the terms and costs charged to the CDFI Program Recipient’s compliance with the conditions of the Federal award. These award. In addition, the CDFI Fund will requirements in the Assistance systems must be sufficient to permit the require Recipients to: Maintain effective Agreement and to assess the impact of preparation of reports required by internal controls; comply with the CDFI Program. The CDFI Fund general and program specific terms and applicable statutes, regulations, and the reserves the right, in its sole discretion, conditions, including the tracing of Assistance Agreement; evaluate and to modify these reporting requirements, funds to a level of expenditures monitor compliance; take action when including increasing the scope and adequate to establish that such funds not in compliance; and safeguard frequency of reporting, if it determines have been used according to the Federal personally identifiable information. it to be appropriate and necessary;

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VII. Agency Contacts listed in Table 1 and Table 12. The CDFI questions received about this Fund strongly recommends applicants Application. Other information A. The CDFI Fund will respond to submit questions to the CDFI Fund via regarding the CDFI Fund and its questions concerning this NOFA and an AMIS service request to the CDFI programs may be obtained from the the Application between the hours of Program, Certification, Compliance CDFI Fund’s website at http:// 9:00 a.m. and 5:00 p.m. Eastern Daylight Monitoring and Evaluation, or IT Help www.cdfifund.gov. Table 20 lists CDFI Savings Time, starting on the date that Desk. The CDFI Fund will post on its Fund contact information: the NOFA is published through the date website responses to reoccurring

TABLE 20—CONTACT INFORMATION

Telephone No. Type of question Preferred method (not toll free) Email addresses

CDFI Program ...... Service Request via AMIS ...... 202–653–0421, option 1 ...... [email protected]. CCME ...... Service Request via AMIS ...... 202–653–0423 ...... [email protected]. AMIS—IT Help Desk ...... Service Request via AMIS ...... 202–653–0422 ...... [email protected].

B. Information Technology Support: VIII. Other Information of one or more persons and vessels that For IT Assistance, submit an AMIS A. Paperwork Reduction Act: Under have been placed on OFAC’s Specially Service Request (Record Type of the Paperwork Reduction Act (44 U.S.C. Designated Nationals and Blocked ‘‘General Inquiry’’). In the Service chapter 35), an agency may not conduct Persons List based on OFAC’s Request form, select the appropriate or sponsor a collection of information, determination that one or more program, then select ‘‘AMIS Technical and an individual is not required to applicable legal criteria were satisfied. Problem’’ as the Type. People who have respond to a collection of information, All property and interests in property visual or mobility impairments that unless it displays a valid OMB control subject to U.S. jurisdiction of these prevent them from using the CDFI number. If applicable, the CDFI Fund persons, and these vessels, are blocked, Fund’s website should call (202) 653– may inform Applicants that they do not and U.S. persons are generally 0422 for assistance (this is not a toll free need to provide certain Application prohibited from engaging in transactions number). information otherwise required. with them. C. Communication with the CDFI Pursuant to the Paperwork Reduction DATES: See SUPPLEMENTARY INFORMATION Fund: The CDFI Fund will use the Act, the CDFI Program, and NACA section. contact information in AMIS to Program Application has been assigned FOR FURTHER INFORMATION CONTACT: communicate with Applicants and the following control number: 1559– OFAC: Associate Director for Global Recipients. It is imperative, therefore, 0021. The DF–FA questions have been Targeting, tel.: 202–622–2420; Assistant that Applicants, Recipients, assigned the following control number: Director for Sanctions Compliance & Subsidiaries, Affiliates, and signatories 1559—New. Evaluation, tel.: 202–622–2490; maintain accurate contact information B. Application Information Sessions: Assistant Director for Licensing, tel.: in their accounts. This includes The CDFI Fund may conduct webinars 202–622–2480; or the Department of the information such as contact names or host information sessions for Treasury’s Office of the General (especially for the Authorized organizations that are considering Counsel: Office of the Chief Counsel Representative) listed in this NOFA’s applying to, or are interested in learning (Foreign Assets Control), tel.: 202–622– application materials, email addresses, about, the CDFI Fund’s programs. For 2410. further information, visit the CDFI fax and phone numbers, and office SUPPLEMENTARY INFORMATION: locations. Fund’s website at http:// www.cdfifund.gov. Electronic Availability D. Civil Rights and Diversity: Any person who is eligible to receive Authority: 12 U.S.C. 4701, et seq; 12 CFR The Specially Designated Nationals benefits or services from the CDFI Fund parts 1805 and 1815; 2 CFR part 200. and Blocked Persons List and additional or Recipients under any of its programs Mary Ann Donovan, information concerning OFAC sanctions is entitled to those benefits or services Director, Community Development Financial programs are available on OFAC’s without being subject to prohibited Institutions Fund. website (www.treasury.gov/ofac). discrimination. The Department of the [FR Doc. 2018–01997 Filed 1–31–18; 8:45 am] Notice of OFAC Action(s) Treasury’s Office of Civil Rights and BILLING CODE 4810–70–P Diversity enforces various Federal A. On January 24, 2018, OFAC statutes and regulations that prohibit determined that the property and discrimination in financially assisted DEPARTMENT OF THE TREASURY interests in property subject to U.S. and conducted programs and activities jurisdiction of the following persons, of the CDFI Fund. If a person believes Office of Foreign Assets Control and the following vessels subject to U.S. that s/he has been subjected to jurisdiction, are blocked pursuant to the discrimination and/or reprisal because Notice of OFAC Sanctions Actions relevant sanctions authorities listed of membership in a protected group, AGENCY: Office of Foreign Assets below. Dealings in property subject to s/he may file a complaint with: Control, Treasury. U.S. jurisdiction in which a person Associate Chief Human Capital Officer, ACTION: Notice. identified as Government of North Office of Civil Rights, and Diversity, Korea has an interest are prohibited 1500 Pennsylvania Ave. NW, SUMMARY: The Department of the effective as of the date of that status, Washington, DC 20220 or (202) 622– Treasury’s Office of Foreign Assets which may be earlier than the date of 1160 (not a toll-free number). Control (OFAC) is publishing the names OFAC’s determination.

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Individuals a.k.a. PARK, Aleksei), Nakhodka, Passport 927220424 expires 12 Jun 1. KIM, Song (a.k.a. KIM, So’ng), Russia; DOB 15 Sep 1970; nationality 2022; Korea Daesong Bank official Linjiang, China; DOB 11 Jan 1964; Korea, North; Gender Male; Korea (individual) [DPRK4]. Designated pursuant to section 1(a)(i) nationality Korea, North; Gender Male; Ryonbong General Corporation Official of E.O. 13810 for operating in the Representative of the Korea Ryonbong (individual) [DPRK2]. financial services industry in North General Corporation in Linjiang, China Designated pursuant to section Korea. (individual) [DPRK2]. 1(a)(iii) of E.O. 13687 for being an 16. PAEK, Jong Sam (a.k.a. PAEK, Designated pursuant to section official of the Workers’ Party of Korea. 9. PAK, Tong Sok (a.k.a. PAK, Tong- Chong-sam), Shenyang, China; DOB 17 1(a)(iii) of Executive Order 13687 of So’k), Abkhazia, Georgia; DOB 15 Apr Jan 1964; nationality Korea, North January 2, 2015, ‘‘Imposing Additional 1965; nationality Korea, North; Passport (individual) [DPRK4]. Sanctions With Respect to North Korea’’ 745120209 (Korea, North) expires 26 Designated pursuant to section 1(a)(i) (E.O. 13687) for being an official of the Feb 2020; Korea Ryonbong General of E.O. 13810 for operating in the Workers’ Party of Korea. Corporation Official (individual) financial services industry in North 2. RYANG, Tae Chol (a.k.a. RYANG, [DPRK2]. Korea. Tae-ch’o’l), Tumen, China; DOB 07 Jan Designated pursuant to section 1969; nationality Korea, North; Gender Entities 1(a)(iii) of E.O. 13687 for being an Male; Representative of the Korea official of the Workers’ Party of Korea. 1. MINISTRY OF CRUDE OIL Ryonbong General Corporation in 10. JONG, Man Bok (a.k.a. CHO’NG, INDUSTRY (a.k.a. CRUDE OIL Tumen, China (individual) [DPRK2]. Man-pok), Dandong, China; DOB 23 Dec INDUSTRY MINISTRY; a.k.a. GENERAL Designated pursuant to section 1958; nationality Korea, North; Gender BUREAU OF PETROLEUM INDUSTRY; 1(a)(iii) of E.O. 13687 for being an Male; Korea Ryonbong General a.k.a. MINISTRY OF CRUDE OIL), official of the Workers’ Party of Korea. Corporation Representative in Dandong, Pyongyang, Korea, North [DPRK3]. 3. PAK, Kwang Hun (a.k.a. BAK, China (individual) [DPRK2]. Identified as meeting the definition of Gwang Hun; a.k.a. PAK, Gwang Hun; Designated pursuant to section the Government of North Korea as set a.k.a. PAK, Kwang-hun), Vladivostok, 1(a)(iii) of E.O. 13687 for being an forth in section 9(d) of Executive Order Russia; DOB 01 Jan 1970 to 31 Dec 1970; official of the Workers’ Party of Korea. 13722 of March 15, 2016, ‘‘Blocking nationality Korea, North; Gender Male; 11. KIM, Man Chun (a.k.a. KIM, Man- Property of the Government of North Representative of Korea Ryonbong ch’un), No. 567 Xinshi Street, Linjiang Korea and the Workers’ Party of Korea, General Corporation in Vladivostok, City, China; DOB 25 May 1966; and Prohibiting Certain Transactions Russia (individual) [DPRK2]. nationality Korea, North; Gender Male; With Respect to North Korea’’ (E.O. Designated pursuant to section Passport PS654320308; Korea Ryonbong 13722). 1(a)(iii) of E.O. 13687 for being an General Corporation Representative in 2. HANA ELECTRONICS JVC (a.k.a. official of the Workers’ Party of Korea. Linjiang, China (individual) [DPRK2]. HANA ELECTRONIC JV COMPANY; 4. RI, Myong Hun (a.k.a. RI, Myo’ng- Designated pursuant to section a.k.a. HANA ELECTRONICS), hun), Korea, North; DOB 14 Mar 1969; 1(a)(iii) of E.O. 13687 for being an PYONGYANG, Korea, North [DPRK4]. Gender Male; Passport 381420089 official of the Workers’ Party of Korea. Designated pursuant to section 1(a)(i) expires 11 Oct 2016 (individual) 12. RI, Tok Jin (a.k.a. RI, To’k-chin), of E.O. 13810 for operating in the [DPRK2]. Ji’an, China; DOB 26 Jul 1957; manufacturing industry in North Korea. Designated pursuant to section 1(a)(ii) nationality Korea, North; Korea 3. BEIJING CHENGXING TRADING of E.O. 13687 for being an official of the Ryonbong General Corporation CO. LTD. (Chinese Simplified: 5317; Government of North Korea. Representative in Ji’an, China 4EAC; 5174; 8D38; 6613; 709; 9650; 5. HAN, Kwon U (a.k.a. HAN, Kon U; (individual) [DPRK2]. 516C; 53F8;), Room 2206 Floor 19, 602 a.k.a. HAN, Ko’n-u; a.k.a. HAN, Kwo’n- Designated pursuant to section Wangjing Yuan, Zhaoyang District, u), Zhuhai, China; DOB 21 Aug 1962; 1(a)(iii) of E.O. 13687 for being an Beijing, China [DPRK4]. Passport 745434880; Korea Ryonbong official of the Workers’ Party of Korea. Designated pursuant to section General Corporation Representative in 13. CHOE, Song Nam (a.k.a. CH’OE, 1(a)(iii) of E.O. 13810 for having Zhuhai, China (individual) [DPRK2]. So’ng-nam), Shenyang, China; DOB 07 engaged in at least one significant Designated pursuant to section Jan 1979; Passport 563320192 expires 09 importation from or exportation to 1(a)(iii) of E.O. 13687 for being an Aug 2018; Daesong Bank Representative North Korea of any goods, services, or official of the Workers’ Party of Korea. (individual) [DPRK4]. technology. 6. KIM, Kyong Hak (a.k.a. KIM, Designated pursuant to section 1(a)(i) 4. DANDONG JINXIANG TRADE CO., Kyo’ng-hak), Zhuhai, China; DOB 27 of Executive Order 13810 of September LTD. (a.k.a. CHINA DANDONG Nov 1973; nationality Korea, North; 20, 2017, ‘‘Imposing Additional KUMSANG TRADE COMPANY, Passport 654231856; Korea Ryonbong Sanctions With Respect to North Korea’’ LIMITED; a.k.a. DANDONG METAL General Corporation Representative in (E.O. 13810) for operating in the COMPANY; a.k.a. JINXIANG TRADING Zhuhai, China (individual) [DPRK2]. financial services industry in North COMPANY), Room 303, Unit 2, Designated pursuant to section Korea. Building Number 3, Number 99 Binjiang 1(a)(iii) of E.O. 13687 for being an 14. KIM, Chol (a.k.a. KIM, Ch’o’l), Lu (Road), Zhenxing District, Dandong, official of the Workers’ Party of Korea. Dalian, China; DOB 27 Sep 1964; Korea China; Room 303–01, Number 99–3, 7. KIM, Pyong Chan (a.k.a. KIM, United Development Bank Binjiang Zhong Lu (Road), Dandong, Pyo’ng-ch’an), Korea, North; Zhuhai, representative (individual) [DPRK4]. China; Number 5, Tenth Street, China; DOB 09 Jun 1961; Workers’ Party Designated pursuant to section 1(a)(i) Zhenxing District, Dandong, Liaoning, of Korea Official (individual) [DPRK2]. of E.O. 13810 for operating in the China; 245–11, Number 1 Wanlian Designated pursuant to section financial services industry in North Road, Shenhe District, Shenyang, China; 1(a)(iii) of E.O. 13687 for being an Korea. Room 1101, No B, Jiadi Building, official of the Workers’ Party of Korea. 15. Ko, Il Hwan (a.k.a. KO, Il-hwan), Business and Tourist, China; Room 303, 8. KIM, Ho Kyu (a.k.a. KIM, Ho Gyu; Shenyang, China; DOB 28 Aug 1967; Unit 2, 3 Haolou, Building 99 Binjiang a.k.a. KIM, Ho’-kyu; a.k.a. KIM, Ho-Kyu; nationality Korea, North; Gender Male; Middle Rd., Zhenxing, Dandong,

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Liaoning 118000, China; Nationality of (vessel) [DPRK4] (Linked To: Simplified: 671D; 9C9C; 534E; 4E3D; Registration China [DPRK4]. GOORYONG SHIPPING CO LTD). 94F6; 884C;); a.k.a. HWARYO BANK Designated pursuant to section Identified pursuant to E.O. 13810 as (Korean:D654; B824;D589;)), 1(a)(iii) of E.O. 13810 for having property in which GOORYONG Haebangsan Hotel, Jungsong-Dong, engaged in at least one significant SHIPPING CO LTD, a person whose Sungri Street, Central District, importation from or exportation to property and interests in property are Pyongyang, Korea, North; Dandong, North Korea of any goods, services, or blocked pursuant to E.O. 13810, has an China; SWIFT/BIC BRBKKPP1XXX technology. interest. [DPRK3]. 3. HWA SONG Democratic People’s 5. CK INTERNATIONAL LTD, c/o Dated: January 29, 2018. Korea Uljibong Shipping Co., Jongbaek Republic of Korea flag; Vessel John E. Smith, 1-dong, Rakrang-guyok, Pyongyang, Registration Identification IMO 8217685 Korea, North; Room 9, Unit A, 3rd (vessel) [DPRK4] (Linked To: Director, Office of Foreign Assets Control. Floor, Cheong Sun Tower, 116–118, HWASONG SHIPPING CO LTD). [FR Doc. 2018–02002 Filed 1–31–18; 8:45 am] Wing Lok Street, Sheung Wan, Hong Identified pursuant to E.O. 13810 as BILLING CODE 4810–AL–P Kong; Company Number IMO 5980332 property in which HWASONG [DPRK4]. SHIPPING CO LTD, a person whose Designated pursuant to section 1(a)(i) property and interests in property are DEPARTMENT OF VETERANS of E.O. 13810 for operating in the blocked pursuant to E.O. 13810, has an AFFAIRS transportation industry in North Korea. interest. 6. GOORYONG SHIPPING CO LTD 4. KUM UN SAN Democratic People’s Notice of Request for Information on (f.k.a. GOORYONG SHIPPING Republic of Korea flag; Vessel the Department of Veterans Affairs BANGKOK), Changgyong 2-dong, Registration Identification IMO 8720436 Program of Comprehensive Assistance Sosong-guyok, Pyongyang, Korea, North; (vessel) [DPRK4] (Linked To: KOREA for Family Caregivers (PCAFC); Warranton Ville 458Soi 5Pattanakan Soi KUMUNSAN SHIPPING CO). Correction Identified pursuant to E.O. 13810 as 44Suanluang, Bangkok 10250, Thailand; AGENCY: Department of Veterans Affairs. Company Number IMO 5055293 property in which KOREA KUMUNSAN ACTION: Request for information; [DPRK4]. SHIPPING CO, a person whose property correction. Designated pursuant to section 1(a)(i) and interests in property are blocked of E.O. 13810 for operating in the pursuant to E.O. 13810, has an interest. SUMMARY: On January 5, 2018, the transportation industry in North Korea. 5. UL JI BONG 6 Democratic People’s Department of Veterans Affairs (VA) 7. HWASONG SHIPPING CO LTD, Republic of Korea flag; Vessel published a Notice, Request for Changgyong dong, Sosong-guyok, Registration Identification IMO 9114555 Information in the Federal Register, 83 Pyongyang, Korea, North; Company (vessel) [DPRK4] (Linked To: CK FR 701, requesting information Number IMO 543400 [DPRK4]. INTERNATIONAL). regarding its Program of Comprehensive Designated pursuant to section 1(a)(i) Identified pursuant to E.O. 13810 as Assistance for Family Caregivers of E.O. 13810 for operating in the property in which CK (PCAFC). That notice contained transportation industry in North Korea. INTERNATIONAL, a person whose incorrect information. 8. KOREA KUMUNSAN SHIPPING property and interests in property are DATES: Comments in response to this CO, Pongnam-dong, Pyongchon-guyok, blocked pursuant to E.O. 13810, has an request for information must be received Pyongyang, Korea, North; Company interest. by VA on or before February 5, 2018. Number IMO 5110478 [DPRK4]. 6. UN RYUL Democratic People’s Designated pursuant to section 1(a)(i) Republic of Korea flag; Vessel ADDRESSES: Written comments may be of E.O. 13810 for operating in the Registration Identification IMO 8514409 submitted through http:// transportation industry in North Korea. (vessel) [DPRK4] (Linked To: KOREA www.Regulations.gov; by mail or hand 9. KOREA MARINE & INDUSTRIAL MARINE & INDUSTRIAL TRDG). delivery to the Director, Office of TRDG (a.k.a. KOREA MARINE AND Identified pursuant to E.O. 13810 as Regulation Policy and Management INDUSTRIAL TRDG), Changgyong 2- property in which KOREA MARINE & (00REG), Department of Veterans dong, Sosong-guyok, Pyongyang, Korea, INDUSTRIAL TRDG, a person whose Affairs, 810 Vermont Avenue NW, North; Company Number IMO 5928635 property and interests in property are Room 1068, Washington, DC 20420; or [DPRK4]. blocked pursuant to E.O. 13810, has an by fax to (202) 273–9026. Comments Designated pursuant to section 1(a)(i) interest. should indicate that they are submitted of E.O. 13810 for operating in the B. On January 24, 2018, OFAC in response to ‘‘Notice of Request for transportation industry in North Korea. published the following revised Information on the Department of identifier information for one individual Veterans Affairs Program of Vessels and one entity on OFAC’s Specially Comprehensive Assistance for Family 1. EVER GLORY Democratic People’s Designated Nationals and Blocked Caregivers (PCAFC)’’. Copies of Republic of Korea flag; Vessel Persons List whose property and comments received will be available for Registration Identification IMO 8909915 interests in property are blocked public inspection in the Office of (vessel) [DPRK4] (Linked To: KOREA pursuant to E.O. 13722: Regulation Policy and Management MARINE & INDUSTRIAL TRDG). 1. HUISH, Irina Igorevna (a.k.a. (00REG), Department of Veterans Identified pursuant to E.O. 13810 as BURLOVA, Irina), Russia; South Africa; Affairs, 810 Vermont Ave. NW, Room property in which KOREA MARINE & DOB 18 Jan 1973; Gender Female 1063B, Washington, DC 20420, between INDUSTRIAL TRDG, a person whose (individual) [DPRK3] (Linked To: the hours of 8:00 a.m. and 4:30 p.m., property and interests in property are VELMUR MANAGEMENT PTE LTD). Monday through Friday (except Federal blocked pursuant to E.O. 13810, has an 2. HANA BANKING CORPORATION holidays). Please call (202) 461–4902 interest. LTD (a.k.a. BRILLIANCE BANKING (this is not a toll-free number) for an 2. GOO RYONG Democratic People’s CORPORATION, LTD.; a.k.a. appointment. During the comment Republic of Korea flag; Vessel GORGEOUS BANK OF NORTH KOREA; period, comments may also be viewed Registration Identification IMO 8201870 a.k.a. HUALI BANK (Chinese online through the Federal Docket

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Management System at Affairs, 810 Vermont Ave. NW, (40A1), industry partners in the provision of www.Regulations.gov. Washington, DC 20420, or faxed to (202) memorial benefits and services, and FOR FURTHER INFORMATION CONTACT: 273–6709. outreach information to VA Margaret Kabat, National Director, FOR FURTHER INFORMATION CONTACT: Ms. beneficiaries. Caregiver Support Program, 10P4C, Christine Hamilton, National Cemetery The Secretary shall determine the Veterans Health Administration, Administration, Department of Veterans number, terms of service, and pay and Department of Veterans Affairs, 810 Affairs, 810 Vermont Ave. NW, (40A1), allowances of members of the Vermont Avenue NW, Washington, DC Washington, DC 20420, telephone (202) Committee appointed by the Secretary, 20420, 202–461–6780 (this is not a toll 461–5681. A copy of Committee charter except that a term of service of any such free number). and list of the current membership can member may not exceed three years. be obtained by contacting Ms. Hamilton The Secretary may reappoint any such Correction or by accessing the website managed by member for additional terms of service. In the Federal Register of January 5, NCA at: http://www.cem.va.gov/cem/ To the extent possible, the Secretary 2018, in FR doc 18–0004, on page 701 about/advisory_committee.asp. seeks members who have diverse in the third column, correct the second SUPPLEMENTARY INFORMATION: The professional and personal qualifications, sentence in the second-to-last paragraph Advisory Committee on Cemeteries and including but not limited to prior to read as follows: Memorials (ACCM) was established to military experience and military VA believes that 30 days is sufficient advise the Secretary of VA with respect deployments, experience working with to provide comments, as the to the administration of VA national Veterans, and experience in large and individuals, groups, and entities cemeteries, soldiers’ lots and plots, complex organizations, and subject interested in this program likely have which are the responsibility of the matter expertise in the areas described information and opinions readily Secretary, the erection of appropriate above. We ask that nominations include available or can quickly compile and memorials and the adequacy of Federal information of this type so that VA can submit such information. burial benefits. The Committee ensure diverse Committee membership. Requirements for Nomination Dated: January 29, 2018. responsibilities include: (1) Advising the Secretary on VA’s Submission: Nominations should be Michael Shores, typed (one nomination per nominator). Director, Office of Regulation Policy & administration of burial benefits and the selection of cemetery sites, the erection Nomination package should include: Management, Office of the Secretary, (1) A letter of nomination that clearly Department of Veterans Affairs. of appropriate memorials, and the adequacy of Federal burial benefits; states the name and affiliation of the [FR Doc. 2018–01980 Filed 1–31–18; 8:45 am] nominee, the basis for the nomination BILLING CODE 8320–01–P (2) Providing to the Secretary and Congress periodic reports outlining (i.e. specific attributes which qualify the recommendations, concerns, and nominee for service in this capacity), DEPARTMENT OF VETERANS observations on VA’s delivery of these and a statement from the nominee AFFAIRS benefits and services to Veterans; indicating the willingness to serve as a (3) Meeting with VA officials, Veteran member of the Committee; Solicitation of Nominations for Service Organizations, and other (2) The nominee’s contact Appointment to the Advisory stakeholders to assess the Department’s information, including name, mailing Committee on Cemeteries and efforts in providing burial benefits and address, telephone numbers, and email Memorials, Amended outreach on these benefits to Veterans address; and their dependents; (3) The nominee’s curriculum vitae; ACTION: Notice. (4) Undertaking assignments to and conduct research and assess existing (4) A summary of the nominee’s SUMMARY: The Department of Veterans burial and memorial programs; to experience and qualifications relative to Affairs (VA), National Cemetery examine potential revisions or the membership considerations Administration (NCA), is seeking expansion of burial and memorial described above. nominations of qualified candidates to programs and services; and to provide Individuals selected for appointment be considered for appointment as a advice and recommendations to the to the Committee shall be invited to member of the Advisory Committee on Secretary based on this research. serve a two-year term. Committee Cemeteries and Memorials (herein-after Membership Criteria and members will receive a stipend for in this section referred to as ‘‘the Qualification: NCA is requesting attending Committee meetings, Committee’’). The Committee was nominations for upcoming vacancies on including per diem and reimbursement established to advise the Secretary of the Committee. The Committee is for travel expenses incurred. VA with respect to the administration of composed of up to twelve members and The Department makes every effort to VA national cemeteries, soldiers’ lots several ex-officio members. ensure that the membership of VA and plots, which are the responsibility The members of the Committee are federal advisory committees is diverse of the Secretary, the erection of appointed by the Secretary of Veteran in terms of points of view represented appropriate memorials and the Affairs from the general public, and the committee’s capabilities. adequacy of Federal burial benefits. including but not limited to: Appointments to this Committee shall DATES: Nominations of qualified (1) Veterans or other individuals who be made without discrimination because candidates are being sought to fill are recognized authorities in fields of a person’s race, color, religion, sex, upcoming vacancies on the Committee. pertinent to the needs of Veterans; sexual orientation, gender identify, Nominations for membership on the (2) Veterans who have experience in national origin, age, disability, or Committee must be received no later a military theater of operations; genetic information. Nominations must than 5:00 p.m. EST on February 9, 2018. (3) Recently separated service state that the nominee is willing to serve ADDRESSES: All nominations should be members; as a member of the Committee and mailed to National Cemetery (4) Officials from Government, non- appears to have no conflict of interest Administration, Department of Veterans Government organizations (NGOs) and that would preclude membership. An

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ethics review is conducted for each Management and Budget (OMB) for each (FY) 2018. The objective of the grant is selected nominee. collection of information they conduct to encourage the development of new Dated: January 29, 2018. or sponsor. This request for comment is assistive technologies for specially adapted housing. This notice is Jelessa M. Burney, being made pursuant to Section 3506(c)(2)(A) of the PRA. intended to provide applicants with the Federal Advisory Committee Management With respect to the following information necessary to apply for the Officer. collection of information, VBA invites SAHAT Grant Program. Registration [FR Doc. 2018–01974 Filed 1–31–18; 8:45 am] comments on: (1) Whether the proposed will be available at www.Grants.gov. VA BILLING CODE P collection of information is necessary strongly recommends referring to the for the proper performance of VBA’s Specially Adapted Housing Assistive Technology Grant Program regulation in DEPARTMENT OF VETERANS functions, including whether the conjunction with this notice. The AFFAIRS information will have practical utility; (2) the accuracy of VBA’s estimate of the registration process described in this [OMB Control No. 2900–0068] burden of the proposed collection of notice applies only to applicants who information; (3) ways to enhance the will register to submit project Agency Information Collection quality, utility, and clarity of the applications for FY 2018 SAHAT Grant Activity: Application for Service- information to be collected; and (4) Program funds. Disabled Veterans Insurance ways to minimize the burden of the DATES: Applications for the SAHAT AGENCY: Veterans Benefits collection of information on Grant Program must be submitted via Administration, Department of Veterans respondents, including through the use www.Grants.gov by 11:59 p.m. Eastern Affairs. of automated collection techniques or Time on February 25, 2018. The SAHAT the use of other forms of information Grant Program application package for ACTION: Notice. technology. funding opportunity, VA–SAHAT–18– SUMMARY: Veterans Benefits Authority: Public Law 104–13; 44 03, is available through www.Grants.gov Administration, Department of Veterans U.S.C. 3501–3521. and is listed as VA-Specially Adapted Affairs (VA), is announcing an Title: Application for Service- Housing Assistive Technology Grant opportunity for public comment on the Disabled Veterans Insurance VA Form Program. Applications may not be sent proposed collection of certain 29–4364 and VA Form 29–0151. by mail, email, or facsimile. All information by the agency. Under the OMB Control Number: 2900–0068. application materials must be in a Paperwork Reduction Act (PRA) of Type of Review: Reinstatement of a format compatible with the 1995, Federal agencies are required to previously approved collection. www.Grants.gov application submission publish notice in the Federal Register Abstract: These forms are used by tool. Applications must arrive as a concerning each proposed collection of veterans to apply for Service Disabled complete package. Materials arriving information, including each proposed Veterans Insurance, to designate a separately will not be included in the reinstatement of a currently approved beneficiary and to select an optional application package for consideration collection, and allow 60 days for public settlement. The information is required and may result in the application being comment in response to the notice. This by law, 38 U.S.C., Section 1922. rejected. Technical assistance with the notice solicits comments on information Affected Public: Individuals and preparation of an initial SAHAT Grant needed from veterans to apply for households. Program application is available by Service Disabled Veterans Insurance, to Estimated Annual Burden: 8,333 contacting the program official listed designate a beneficiary and to select an hours. below. Estimated Average Burden per optional settlement. The information is FOR FURTHER INFORMATION CONTACT: Respondent: 20 minutes. required by law, 38 U.S.C., Section Bryant Lacey (Program Manager), Frequency of Response: On occasion. 1922. Specially Adapted Housing Program Estimated Number of Respondents: DATES: Written comments and (262), Veterans Benefits Administration, By direction of the Secretary. recommendations on the proposed Department of Veterans Affairs, 810 collection of information should be Cynthia Harvey-Pryor, Vermont Avenue NW, Washington, DC received on or before April 2, 2018. Department Clearance Officer, Office of 20420, (202) 632–8955. (This is not a Quality, Privacy and Risk, Department of toll-free number.) ADDRESSES: Submit written comments Veterans Affairs. SUPPLEMENTARY INFORMATION: on the collection of information through [FR Doc. 2018–01945 Filed 1–31–18; 8:45 am] Federal Docket Management System Full Text of Announcement: This BILLING CODE 8320–01–P (FDMS) at www.Regulations.gov or to notice is divided into eight sections. Nancy J. Kessinger, Veterans Benefits Section I provides a summary of and Administrations (20M33), Department background information on the SAHAT DEPARTMENT OF VETERANS Grant Program as well as the statutory of Veterans Affairs, 810 Vermont AFFAIRS Avenue NW, Washington, DC 20420 or authority, desired outcomes, funding priorities, definitions, and delegation of email to [email protected]. Please Loan Guaranty: Specially Adapted authority. Section II provides award refer to ‘‘OMB Control No. 2900–0068’’ Housing Assistive Technology Grant information, including funding in any correspondence. During the Program comment period, comments may be availability, and the anticipated start viewed online through FDMS. AGENCY: Department of Veterans Affairs. date of the SAHAT Grant Program. ACTION: Notice of funding availability. Section III provides detailed FOR FURTHER INFORMATION CONTACT: information on eligibility and the Cynthia Harvey-Pryor at (202) 461– SUMMARY: The Department of Veterans threshold criteria for submitting an 5870. Affairs (VA) is announcing the application. Section IV provides SUPPLEMENTARY INFORMATION: Under the availability of funds for the Specially detailed application and submission PRA of 1995, Federal agencies must Adapted Housing Assistive Technology information, including how to request obtain approval from the Office of (SAHAT) Grant Program for fiscal year an application, application content, and

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submission dates and times. Section V servicemembers can use in order to F. Delegation of Authority describes the review process, scoring facilitate optimal independence in their Pursuant to 38 CFR 36.4412(i), each criteria, and selection process. Section homes. VA employee appointed to or lawfully Please Note: SAHAT funding does not VI provides award administration fulfilling any of the following positions support the construction or information such as award notices and is delegated authority, within the modification of residential dwellings for reporting requirements. Section VII limitations and conditions prescribed by accessibility. Veterans and provides agency contacts. Section VIII law, to exercise the powers and servicemembers interested in receiving provides additional information related functions of the Secretary with respect assistance to adapt a home are to the SAHAT Grant Program. This to the SAHAT Grant Program authorized encouraged to review the following notice includes citations from 38 CFR by 38 U.S.C. 2108: part 36, which applicants and factsheet: http:// stakeholders are expected to read to www.prosthetics.va.gov/factsheet/PSAS- 1. Under Secretary for Benefits increase their knowledge and FactSheet-Housing-Adaptation- 2. Deputy Under Secretary for Economic understanding of the SAHAT Grant Programs.pdf to identify Home Opportunity Program. Adaptation programs offered by VA. 3. Director, Loan Guaranty Service 4. Deputy Director, Loan Guaranty I. Program Description C. Statutory Authority Service A. Summary Public Law 111–275, the Veterans’ II. Award Information Benefits Act of 2010 (the Act), was Pursuant to the Veterans’ Benefits Act enacted on October 13, 2010. Section A. Funding Availability of 2010 (Pub. L. 111–275, 124 Stat. 203 of the Act amended chapter 21, title The aggregate amount of assistance 2864), the Secretary of Veterans Affairs 38, U.S.C., to establish the SAHAT (Secretary), through the Loan Guaranty VA may award in any fiscal year is Grant Program. The Act authorized VA limited to $1 million. This funding will Service (LGY) of the Veterans Benefits to provide grants of up to $200,000 per Administration (VBA), is authorized to be provided as an assistance agreement fiscal year, through September 30, 2016, in the form of grants. The number of provide grants of financial assistance to to a ‘‘person or entity’’ for the develop new assistive technology. The assistance agreements VA will fund as development of specially adapted a result of this notice will be based on objective of the SAHAT Grant Program housing assistive technologies. The Act is to encourage the development of new the quality of the technology grant limited the aggregate amount of such applications received and the assistive technologies for adapted grants VA may award in any fiscal year housing. availability of funding. However, the to $1 million. maximum amount of assistance a B. Background On September 29, 2017, Public Law technology grant applicant may receive 115–62, the Department of Veterans in any fiscal year is limited to $200,000. LGY currently administers the Affairs Expiring Authorities Act of 2017 Specially Adapted Housing (SAH) was enacted. Section 408 of title IV B. Additional Funding Information Program. Through this program, LGY extended the authority for VA to Funding for these projects is not provides funds to eligible veterans and provide grants in the manner listed servicemembers with certain service- guaranteed and is subject to the above, through September 30, 2018. See availability of funds and the evaluation connected disabilities to help purchase 38 U.S.C. 2108 and 38 CFR 36.4412. or construct an adapted home, or of technology grant applications based modify an existing home, to allow them D. Desired Outcomes and Funding on the criteria in this announcement. In to live more independently. Please see Priorities appropriate circumstances, VA reserves the right to partially fund technology 38 U.S.C. 2101(a)(2)(B) and (C) and 38 Grantees will be expected to leverage grant applications by funding discrete U.S.C. 2101(b)(2) for a list of qualifying grant funds to develop new assistive portions or phases of proposed projects service-connected disabilities. technologies for specially adapted that relate to adapted housing. Award of Currently, most SAH adaptations housing. In 38 CFR 36.4412(f)(2), VA set funding through this competition is not involve structural modifications such as out the scoring criteria and the a guarantee of future funding. The ramps, wider hallways and doorways, maximum points allowed for each SAHAT Grant Program is administered and roll-in showers and other accessible criterion. As explained in the preambles annually and does not guarantee bathroom features, etc. For more to both the proposed and final rules, subsequent awards. Renewal grants to information about the SAH Program, while the scoring framework is set out provide new assistive technology will please visit: http://www.benefits.va.gov/ in the regulation text, each notice will not be considered under this homeloans/adaptedhousing.asp. address the scoring priorities for that announcement. VA acknowledges there are many particular grant cycle. 79 FR 53146, emerging technologies and 53148, Sept. 8, 2014; 80 FR 55763, C. Start and Close-out Date improvements in building materials that 55764, Sept. 17, 2014. For FY 2018, the could improve home adaptions or The anticipated start date of grants Secretary has established innovation funded under this announcement is otherwise enhance a veteran’s or and unmet needs, as described in servicemember’s ability to live April 2, 2018. Grant projects must be scoring criteria 1 and 2 contained in closed out by September 30, 2019. independently. Therefore, in 38 CFR Section V(A) of this notice, as top 36.4412(b)(2), VA has defined ‘‘new priorities. Additional information III. Eligibility Information assistive technology’’ as an regarding how these priorities will be A. Eligible Applicants advancement that the Secretary scored is contained in Section V(A) of determines could aid or enhance the this notice. As authorized by 38 U.S.C. 2108, the ability of an eligible individual, as Secretary may provide a grant to a defined in 38 CFR 36.4401, to live in an E. Definitions ‘‘person or entity’’ for the development adapted home. SAHAT funding will Definitions of terms used in the of specially adapted housing assistive support the creation of assistive SAHAT Grant Program are found at 38 technologies. In order to foster technologies that veterans and CFR 36.4412(b). competition and best serve the needs of

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veterans and servicemembers, VA is received through www.Grants.gov after applicant and proposed project. The project placing no restrictions on the types of the application deadline will be budget should be described in SF–424A. eligible entities, except as noted in considered late and will not be Please do not include leveraged resources in reviewed. SF–424A. Section III(C) of this notice. 2. VA Form 26–0967: Certification 7. Technology grant applicants that B. Cost Sharing or Matching Regarding Debarment, Suspension, have an outstanding obligation to the Ineligibility and Voluntary Exclusion. There is no cost sharing, matching, or Federal Government that is in arrears or 3. VA Form 26–0967a: Scoring Criteria for cost participation for the SAHAT Grant have an overdue or unsatisfactory SAH Assistive Technology Grants. Program. However, leveraged resources response to an audit will be deemed 4. Applications: In addition to the forms will be considered as an evaluation ineligible. listed above, each technology grant criterion during the application review 8. Technology grant applicants in application must include the following process (see scoring criterion 6 in information: default by failing to meet the a. A project description, including the Section V of this announcement). requirements for any previous Federal goals and objectives of the project, what the Leveraged resources are not included in assistance will be deemed ineligible. project is expected to achieve, and how the the approved budget (outlined in the 9. Applications submitted by entities project will benefit veterans and Standard Form 424A—BUDGET deemed ineligible will not be reviewed. servicemembers. INFORMATION—Non-Construction 10. Applications with project dates b. An estimated schedule including the Programs) for the project and need not that extend past June 30, 2019 (this length of time (not to extend past June 30, be an eligible and allowable cost under period does not include the 90 days 2019) needed to accomplish tasks and the grant. Any form of proposed objectives for the project. closeout period) will not be reviewed. c. A description of what the project leveraging that is evaluated under All technology grant recipients, proposes to demonstrate and how this new Section V scoring criteria must be including individuals and entities technology will aid or enhance the ability of included in the application, and the formed as for-profit entities, will be veterans and servicemembers to live in an application must describe how the subject to the rules on Uniform adapted home. The following link has technology grant applicant will obtain Administrative Requirements, Cost additional information regarding adapted the leveraged resources and what role Principles, and Audit Requirements for homes: http://www.benefits.va.gov/ VA funding will play in the overall Federal Awards, as found at 2 CFR part homeloans/adaptedhousing.asp. project. d. Each technology grant applicant is 200. See 2 CFR 200.101(a). Where the responsible for ensuring that the application Secretary determines that 2 CFR part C. Threshold Criteria addresses each of the scoring criteria listed 200 is not applicable or where the in Section V(A) of this notice. As stated in Section III(A), VA is Secretary determines that additional placing no restrictions on the types of requirements are necessary due to the C. Dun and Bradstreet Universal eligible entities. However, all uniqueness of a situation, the Secretary Numbering System (DUNS) and System technology grant applicants and will apply the same standard applicable for Award Management (SAM) applications must meet the threshold to exceptions under 2 CFR 200.102. Each technology grant applicant, criteria set forth below. Failure to meet unless the applicant is an individual or IV. Application and Submission any of the following threshold criteria in Federal awarding agency that is Information the application will result in the excepted from these requirements under automatic disqualification for funding A. Address To Request Application 2 CFR 25.110(b) or (c), or has an consideration. Ineligible participants Package exception approved by VA under 2 CFR will be notified within 30 days of the Technology grant applicants may 25.110(d), is required to: finding of disqualification for award 1. Be registered in SAM prior to submitting consideration based on the following download the application package from www.Grants.gov. Questions regarding an application; threshold criteria: 2. Provide a valid DUNS number in the 1. Projects funded under this notice the application process should be application; and must involve new assistive technologies referred to the program official: Bryant 3. Continue to maintain an active SAM that the Secretary determines could aid Lacey (Program Manager), Specially registration with current information at all or enhance the ability of a veteran or Adapted Housing Program, times during which the technology grant servicemember to live in an adapted [email protected], (202) 632–8955 applicant has an active Federal award or an application under consideration by VA. home. (This is not a toll-free number.) 2. Projects funded under this notice B. Content and Form of Application VA will not make an award to an must not be used for the completion of Submission applicant until the applicant has work which was to have been complied with all applicable DUNS and completed under a prior grant. The SAHAT Grant Program SAM requirements, and if the applicant 3. Applications in which the application package provided at has not fully complied with the technology grant applicant is requesting www.Grants.gov (Funding Opportunity requirements by the time VA is ready to assistance funds in excess of $200,000 Number: VA–SAHAT–18–03) contains make an award, VA will determine the will not be reviewed. electronic versions of the application applicant is not qualified to receive a 4. Applications that do not comply forms that are required. Additional Federal award and will use this with the application and submission attachments to satisfy the required determination as a basis for making the information requirements provided in application information may be award to another applicant. Section IV of this notice will be rejected. provided; however, letters of support 5. Applications submitted via mail, included with the application will not D. Submission Dates and Times email, or facsimile will not be reviewed. be reviewed. All technology grant Applications for the SAHAT Grant 6. Applications must be received applications must consist of the Program must be submitted via through www.Grants.gov, as specified in following: www.Grants.gov to be transmitted to VA Section IV of this announcement, on or 1. Standard Forms (SF) 424, 424A and by 11:59 p.m. Eastern Time on February before the application deadline, 424B: The SF–424, SF–424A, and SF–424B 25, 2018. Submissions received after February 25, 2018. Applications require general information about the this application deadline will be

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considered late and will not be placing the greatest emphasis on criteria the SAHAT Grant Program Office and reviewed or considered. Submissions 1 and 2. The establishment of priorities successful applicants prior to the via email, mail, or fax will not be does not establish new scoring criteria issuance of an award notice is not accepted. but is designed to assist technology authorization to begin project activities. Applications submitted via grant applicants in understanding how Once VA verifies that the grant www.Grants.gov must be submitted by scores will be weighted. A technology applicant is still seeking funding, VA an individual registered with grant application must receive a will issue a signed and dated award www.Grants.gov and authorized to sign minimum aggregate score of 70. notice. The award notice will be sent by applications for Federal assistance. For Instructions for completion of the U.S. Mail to the organization listed on more information and to complete the scoring criteria are listed on VA Form the SF–424. registration process, visit 26–0967a. This form is included in the All applicants will be notified by www.Grants.gov. Technology grant application package materials on letter, sent by U.S. Mail to the address applicants are responsible for ensuring www.Grants.gov. The scoring criteria listed on the SF–424. that the registration process does not and maximum points are as follows: B. Administrative and National Policy hinder timely submission of the 1. A description of how the new assistive Requirements application. technology is innovative (up to 50 points); It is the responsibility of grant 2. An explanation of how the new assistive This section is not applicable to the applicants to ensure a complete technology will meet a specific, unmet need SAHAT Grant Program. application is submitted via among eligible individuals (up to 50 points); C. Reporting www.Grants.gov. Applicants are 3. An explanation of how the new assistive VA places great emphasis on the encouraged to periodically review the technology is specifically designed to promote the ability of eligible individuals to responsibility and accountability of ‘‘Version History Tab’’ of the funding live more independently (up to 30 points); grantees. Grantees must agree to opportunity announcement in 4. A description of the new assistive cooperate with any Federal evaluation www.Grants.gov to identify if any technology’s concept, size, and scope (up to of the program and provide the modifications have been made to the 30 points); following: funding announcement and/or 5. An implementation plan with major opportunity package. Upon initial milestones for bringing the new assistive 1. Quarterly Progress Reports: These download of the funding opportunity technology into production and to the reports will be submitted electronically and market. Such milestones must be meaningful outline how grant funds were used, describe package, applicants will be asked to and achievable within a specific timeframe program progress, and describe any barriers provide an email address that will allow (up to 30 points); and and measurable outcomes. Grantees will www.Grants.gov to send the applicant 6. An explanation of what uniquely utilize the Research Performance Progress an email message in the event this positions the technology grant applicant in Report for quarterly reporting purposes. funding opportunity package is changed the marketplace. This can include a focus on 2. Quarterly Financial Reports: These and/or republished on www.Grants.gov characteristics such as the economic reports will be submitted electronically using prior to the posted closing date. reliability of the technology grant applicant, the SF–425—Federal Financial Report. the technology grant applicant’s status as a 3. Grantee Closeout Report: This final E. Confidential Business Information minority or veteran-owned business, or other report will be submitted electronically and characteristics that the technology grant will detail the assistive technology It is recommended that confidential applicant wants to include to show how it developed. The Closeout Report must be business information (CBI) not be will help protect the interests of, or further submitted to the SAHAT Grant Program included in the application. However, if the mission of, VA and the program (up to Office not later than 11:59 p.m. Eastern Time, CBI is included in an application, 20 points). September 30, 2019. applicants should clearly indicate VII. Agency Contact(s) which portion(s) of their application B. Review and Selection Process they are claiming as CBI. See 2 CFR Eligible applications will be evaluated For additional general information 200.333–200.337 (addressing access to a by a five-person review panel comprised about this announcement contact the non-Federal entity’s records pertinent to of VA employees. The review panel will program official: Bryant Lacey (Program a Federal award). score applications using the scoring Manager), Specially Adapted Housing Program, [email protected]. (202) F. Intergovernmental Review criteria provided in Section V(A), with the greatest emphasis being placed on 632–8955 (This is not a toll-free This section is not applicable to the scoring criteria 1 and 2. The review number.) SAHAT Grant Program. panel will then rank those applications Mailed correspondence, which should not include application material, should G. Funding Restrictions that receive a minimum aggregate score of 70 in order from highest to lowest. be sent to: Loan Guaranty Service, VA The SAHAT Grant Program does not The delegated official will select the Central Office, Attn: Bryant Lacey (262), allow reimbursement of pre-award highest ranked application(s) based on, 810 Vermont Avenue NW, Washington, costs. and subject to, the availability of funds. DC 20420. All correspondence with VA V. Application Review Information VI. Award Administration Information concerning this announcement should Each eligible proposal (based on the reference the funding opportunity title A. Award Notices Section III threshold eligibility review) and funding opportunity number listed will be evaluated according to the Although subject to change, the at the top of this solicitation. Once the criteria established by the Secretary and SAHAT Grant Program Office expects to announcement deadline has passed, VA provided below in Section A. announce grant recipients by April 1, staff may not discuss this competition 2018. Prior to executing any funding A. Scoring Criteria with applicants until the application agreement, VA will contact successful review process has been completed. The Secretary will score technology applicants, make known the amount of grant applications based on the scoring proposed funding, and verify the VIII. Other Information criteria listed below. As indicated in applicant’s desire to receive the Section 2108 authorizes VA to Section I of this notice, the Secretary is funding. Any communication between provide grants for the development of

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new assistive technologies through not have a duty to assist technology electronically as an official document of September 30, 2018. Additional grant applicants in obtaining a grant. the Department of Veterans Affairs. information related to the SAH program Grantees will receive payments Gina S. Farrisee, Deputy Chief of administered by LGY is available at: electronically through the U.S. Staff, approved this document on http://www.benefits.va.gov/homeloans/ Department of Health and Human January 23, 2018, for publication. Services Payment Management System. adaptedhousing.asp. Dated: January 29, 2018. The SAHAT Grant is not a veterans’ Signing Authority Michael Shores, benefit. As such, the decisions of the The Secretary of Veterans Affairs, or Director, Regulation Policy & Management, Secretary are final and not subject to the designee, approved this document and Office of the Secretary, Department of same appeal rights as decisions related authorized the undersigned to sign and Veterans Affairs. to veterans’ benefits. The Secretary does submit the document to the Office of the [FR Doc. 2018–01988 Filed 1–31–18; 8:45 am] Federal Register for publication BILLING CODE 8320–01–P

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Part II

Department of Agriculture

Food Safety and Inspection Service 9 CFR Parts 301, 309, and 310 Modernization of Swine Slaughter Inspection; Proposed Rule

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DEPARTMENT OF AGRICULTURE 355 E Street SW, Room 8–163A, proportionally to the number observed Washington, DC 20250–3700. in HIMP establishments, suggested that Food Safety and Inspection Service Instructions: All items submitted by implementing the NPIS would likely mail or electronic mail must include the result in public health benefits, in the 9 CFR Parts 301, 309, and 310 Agency name and docket number FSIS– form of fewer poultry-associated 2016–0017. Comments received in foodborne Salmonella illnesses per year. [Docket No. FSIS–2016–0017] response to this docket will be made Consistent with the underlying available for public inspection and assumptions of the model, it is RIN 0583–AD62 posted without change, including any reasonable to conclude that inspection Modernization of Swine Slaughter personal information, to http:// systems in which Agency resources are Inspection www.regulations.gov. used to continue core online inspection Docket: For access to background activities while enhancing the frequency AGENCY: Food Safety and Inspection documents or comments received, go to and focus of unscheduled offline Service, USDA. the FSIS Docket Room at Patriots Plaza activities directly related to food safety, ACTION: Proposed rule. 3, 355 E Street SW, Room 8–164, such as HIMP and the NPIS, would Washington, DC 20250–3700, between likely result in a lower prevalence of SUMMARY: The Food Safety and 8:00 a.m. and 4:30 p.m., Monday carcasses contaminated with Inspection Service (FSIS) is proposing through Friday. Salmonella, which in turn would likely to amend the Federal meat inspection FOR FURTHER INFORMATION CONTACT: lead to fewer human illnesses. regulations to establish a new Roberta Wagner, Assistant In addition to establishing the NPIS inspection system for market hog Administrator, Office of Policy and for young chickens and turkeys, FSIS slaughter establishments that has been Program Development; Telephone: (202) also amended the poultry products demonstrated to provide public health 205–0495. inspection regulations that apply to all protection at least equivalent to the establishments that slaughter poultry SUPPLEMENTARY INFORMATION: existing inspection system. Market hog other than ratites. The new slaughter establishments that do not Executive Summary requirements ensure that all poultry choose to operate under the new swine slaughter establishments implement FSIS began experimenting with new appropriate measures in their HACCP inspection system may continue to approaches to slaughter inspection operate under their existing inspection plans, sanitation standard operating based on Hazard Analysis and Critical procedures (sanitation SOPs), or other system. The Agency is also proposing Control Point Systems (HACCP) several changes to the regulations that prerequisite programs (hereafter referred principles shortly after publishing the to as their ‘‘HACCP systems’’) to prevent would affect all establishments that Pathogen Reduction/HACCP rule in slaughter any swine, regardless of the contamination of carcasses and parts by 1996. In 1997, the Agency developed enteric pathogens and visible fecal inspection system under which they the HACCP-Based Inspection Models operate or the age, size, or class of material throughout the entire slaughter Project (HIMP) study to determine operation, and ensure that both FSIS swine. These proposed changes would whether applying new Government allow all swine slaughter establishments and establishments have the slaughter inspection procedures, along documentation they need to verify the to develop sampling plans that are more with new plant responsibilities, could tailored to their specific operations, and effectiveness of these measures on an promote innovation and provide at least ongoing basis. thus be more effective in monitoring the same food safety and consumer their specific process control. These FSIS is now proposing to amend the protection. FSIS initiated the HIMP Federal meat inspection regulations to proposed changes also would ensure study in 20 young chicken, five young that before the start of slaughter establish a new optional inspection turkey, and five market hog system for market hog slaughter operations, food-contact surfaces are establishments on a waiver basis. sanitary and free of enteric pathogens. establishments, the New Swine In 2014, the Agency amended the Slaughter Inspection System (NSIS), DATES: Comments must be received on poultry products inspection regulations informed by the Agency’s experiences or before April 2, 2018. to establish a new optional inspection under HIMP. FSIS is proposing this new ADDRESSES: FSIS invites interested system for young chicken and all turkey inspection system to facilitate pathogen persons to submit comments on this slaughter establishments informed by reduction in pork products; improve rule. Comments may be submitted by the Agency’s experiences under HIMP compliance with the HMSA; improve one of the following methods: (79 FR 49566, August 21, 2014). The the effectiveness of market hog slaughter • Federal eRulemaking Portal: This New Poultry Inspection System (NPIS) inspection; make better use of the website provides the ability to type was designed to facilitate pathogen Agency’s resources; and remove short comments directly into the reduction in poultry products, improve unnecessary regulatory obstacles to comment field on this web page or the effectiveness of poultry slaughter innovation by revoking maximum line attach a file for lengthier comments. Go inspection, make better use of the speeds and allowing establishments to http://www.regulations.gov. Follow Agency’s resources, and remove flexibility to reconfigure evisceration the on-line instructions at that site for unnecessary regulatory obstacles to lines. If establishment personnel sorted submitting comments. innovation. The risk model employed to and removed unfit animals before ante- • Mail, including CD–ROMs, etc.: assess the potential impact of the NPIS mortem inspection and trimmed and Send to Docket Clerk, U.S. Department modeled scenarios involving an increase identified defects on carcasses and parts of Agriculture, Food Safety and in targeted inspection activities before post-mortem inspection by FSIS Inspection Service, Patriots Plaza 3, (specifically unscheduled offline inspectors, FSIS inspectors would be 1400 Independence Avenue SW, inspection activities). The results of this presented with healthier animals and Mailstop 3782, Room 8–163A, model, constructed on the assumption carcasses that have fewer defects to Washington, DC 20250–3700. that the number of offline procedures inspect, which would allow inspectors • Hand- or courier-delivered performed in poultry establishments to conduct a more efficient and effective submittals: Deliver to Patriots Plaza 3, under the NPIS would increase inspection of each animal and each

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carcass. Such a system would allow illnesses. In addition, the new system of hog carcasses post-chill (after all FSIS inspectors to conduct a more should improve animal welfare and processing steps have taken place) to be efficient inspection. As a result, FSIS compliance with the Humane Methods a valuable source of data about how could assign fewer inspectors to online of Slaughter Act (HMSA) because more well an establishment is minimizing inspection, freeing up Agency resources FSIS resources will be available to contamination during chilling as well as to conduct more offline inspection verify humane handling as an offline the overall effectiveness of all process activities that FSIS has determined are activity. control interventions the establishment more effective in ensuring food safety, Under the proposed rule, market hog has chosen to apply throughout its such as verifying compliance with slaughter establishments that do not production process. Because most sanitation, HACCP, and humane choose to operate under the NSIS may establishments apply one or more handling requirements. continue to operate under their existing interventions between the pre- Key elements of the proposed NSIS inspection system (hereafter referred to evisceration and post-chill sampling include: (1) Requiring establishment as ‘‘traditional inspection’’). As points to help control microbiological personnel to sort and remove unfit mentioned above, NSIS provides public hazards, FSIS would expect that a animals before ante-mortem inspection health protection at least equivalent to reduction in microbiological by FSIS and to trim and identify defects traditional inspection. FSIS recognizes contamination between these two on carcasses and parts before post- that some establishments may not be sampling points to be an indication of mortem inspection by FSIS; (2) prepared to make the investment in the effectiveness of those controls. facilities and labor needed to convert to Under the proposed rule, requiring establishment personnel to NSIS. In addition, many small, very low establishments, except for very small identify animals or carcasses that they volume establishments slaughter more and very low volume establishments, have sorted and removed for disposal than one type of livestock species and would be required to collect pre- before FSIS inspection with a unique the facilities updates need to convert to evisceration and post chill samples at a tag, tattoo, or similar device and the proposed NSIS may not frequency of once per 1,000 carcasses. immediately denature all major portions accommodate the slaughter of livestock Very small and very low volume of the carcass on-site, and maintain other than market hogs. Therefore, FSIS establishments would be required to records to document the total number of is proposing to give establishments the collect at least one sample during each animals and carcasses sorted and flexibility to operate under the system week of operation each year. If, after removed per day; (3) requiring that is best suited to their operations. consecutively collecting 13 weekly establishment personnel to immediately FSIS is also proposing several changes samples, very small and very low notify FSIS inspectors if they suspect an that would affect all establishments that volume establishments can demonstrate animal or carcass with a reportable or slaughter swine, regardless of the that they are effectively maintaining foreign animal disease (e.g., African inspection system under which they process control, they can modify their swine fever, classical swine fever, or operate. FSIS is proposing to require sampling plans to collect samples less Nipah virus encephalitis) while that all official swine slaughter frequently. FSIS is proposing to allow conducting sorting activities; (4) shifting establishments develop, implement, and very small and very low volume Agency resources to conduct more maintain in their HACCP systems establishments to collect and analyze offline inspection activities that are written procedures to prevent the samples for microbial organisms at the more effective in ensuring food safety, contamination of carcasses and parts by post-chill point in the process only which would allow for up to two offline enteric pathogens, fecal material, because these establishments typically verification inspectors per line per shift ingesta, and milk throughout the entire are less automated and run at slower and would reduce the number of online slaughter and dressing operation. These line speeds than larger establishments. inspectors to a maximum of three per procedures must include sampling and The lower level of automation and the line per shift; (5) requiring analysis for microbial organisms to slower line speeds require less establishments to maintain records monitor process control for enteric complicated measures for maintaining documenting that products resulting pathogens, as well as written procedures and monitoring process control on an from their slaughter operations meet the to prevent visible fecal material, ingesta, ongoing basis. These proposed new proposed definition of Ready-to- and milk contamination. frequencies reflect the frequencies cook (RTC) pork product, which would FSIS is proposing to prescribe a prescribed under the existing be defined as any slaughtered pork minimum frequency with which regulations for generic Escherichia coli product free from bile, hair, scurf, dirt, establishments would be required to (E. coli) testing. FSIS is proposing to hooves, toe nails, claws, bruises, edema, collect two samples, one at pre- remove the current requirement that scabs, skin lesions, icterus, foreign evisceration and one at post-chill (i.e., swine establishments test carcasses for material, and odor which is suitable for the point in the slaughter process after generic E. coli to monitor process cooking without need of further the carcass has chilled in the cooler and control and to remove the codified processing; and (6) revoking maximum after all slaughter interventions are Salmonella pathogen reduction line speeds and authorizing completed), or, for very small and very performance standards for swine and establishments to determine their own low volume establishments, a single replace them with the new testing line speeds based on their ability to post-chill sample. FSIS considers the requirements described above. The new maintain process control for preventing microbial load of hog carcasses at pre- testing requirements would allow fecal contamination and meeting evisceration to be a valuable source of establishments to develop sampling microbial performance measures during data about how well an establishment is plans that are more tailored to the the slaughter operation. FSIS projects taking into account the sanitary specific establishment, and thus more that the new system is unlikely to result condition of live hogs coming to effective in monitoring their specific in a higher prevalence of Salmonella on slaughter and the processing steps (i.e., process control than the current generic market hog carcasses and may even washing, dehairing) they implement to E. coli criteria. result in a lower prevalence of reduce the external contamination of the FSIS is proposing to allow Salmonella on market hog carcasses, carcass prior to evisceration. FSIS also establishments to substitute alternative which in turn may lead to fewer human considers the microbial characteristics sampling locations if they are able to

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demonstrate that the alternative standpoint) of pre-evisceration sampling operational environment. Please see the sampling locations are able to provide a over what is provided by post-chill draft compliance guide for additional definite improvement in monitoring sampling. information about implementation of process control than at pre-evisceration Finally, FSIS is proposing to require this provision. FSIS is proposing this and post-chill. FSIS interprets ‘‘definite that all official swine slaughter requirement as a direct result of a recent improvement’’ to mean any establishments develop, implement, and outbreak of foodborne illness associated improvement of equipment, substances, maintain in their HACCP systems with a hog slaughter establishment methods, processes, or procedures written procedures to prevent where food contact surfaces were found affecting the slaughter of livestock and contamination of the pre-operational to be contaminated with the outbreak poultry or processing of meat, poultry, environment by enteric pathogens. The strain. FSIS is requesting comments on or egg products. FSIS is also proposing pre-operational environment comprises this proposed sampling requirement and to allow establishments to substitute food contact surfaces, reuse water, and the extent to which interventions in the alternative sampling frequencies if they equipment, including knives, in edible pre-operational environment are needed are able to demonstrate that the food production departments before to ensure food safety. alternative is an integral part of the slaughter operations begin. These In Table 1 below, FSIS presents the establishments’ verification procedures procedures would need to include estimated costs and benefits of the for their HACCP plans and are able to sampling and analysis of food-contact proposed rule. Later portions of the provide a definite improvement in surfaces in the pre-operational regulatory impact analysis section monitoring process control than at the environment for microbial organisms to contain explanation of the assumptions, prescribed frequency. FSIS is requesting ensure that the surfaces are sanitary and alternative adoption scenarios, and a comments on the proposed sampling free of enteric pathogens. The sampling discussion of the uncertainty requirements, particularly the frequency would need to be adequate to surrounding the net benefits associated incremental value (from both a process- monitor the establishment’s ability to with how much of the industry would improvement and public health maintain sanitary conditions in the pre- choose to adopt NSIS.

TABLE 1—NET COSTS AND (BENEFITS) [M$]

Number of establishments One-time Recurring

Costs To Industry ...... $3.88 $22.65 Voluntary * ...... ** 40 0.84 22.17 Mandatory ...... 612 3.03 0.48 Potential Health Benefits *** ...... (9.33) Industrial Efficiency ...... (47.33) Impacts to Agency’s Budget ...... 2.80 (8.73)

Totals: One-Time Cost ...... $6.68 Recurring Cost ...... (42.75) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... (31.77) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... (30.40) * Further explanation and details on the NSIS adoption rate are provided in section G. Expected Cost of the Proposed Rule, Table 6: NSIS Adoption Rate and section J. Net Benefits, Table 28: Quantified Cost and (Benefits) of Various Adoption Rates. ** Note, this includes 5 HIMP establishments, which are not expected to incur any costs or benefits associated with the NSIS. *** Further explanation and details on the range of health benefits have been provided in section H. Expected Benefits Associated With Public Health, Table 20: Health Benefits from Averted Cases of Salmonella. The value of health benefits ranges from $0.19 million to $18.97 million, with a mean of $9.33 million.

Statutory Authority 603(a)). The FMIA requires that the contains any poisonous or deleterious livestock be slaughtered and handled in substance that may render it injurious to FSIS inspects and regulates the connection with slaughter in a manner health; it is unhealthful, unwholesome, production of meat and meat food that is consistent with the HMSA (21 or otherwise unfit for human products prepared for distribution in U.S.C. 603(b)). Under the HMSA, the consumption; it was prepared, commerce under the authority of the handling of livestock in connection with packaged, or held under insanitary Federal Meat Inspection Act (FMIA) (21 slaughter must be carried out only by conditions whereby it may have been U.S.C. 601 et seq.). The FMIA provides humane methods (7 U.S.C. 1902). that the Secretary shall cause to be made rendered injurious to health; or if by inspectors an examination and The FMIA also requires inspectors to damage or inferiority has been inspection of all amenable species conduct a post-mortem examination and concealed in any manner (21 U.S.C. before they enter into any establishment inspection, and any necessary 601(m)(1), (3), (4), and (8)). Finally, 21 in which they are to be slaughtered and reinspection, of carcasses and parts of U.S.C. 621 provides that the Secretary the meat and meat food products thereof amenable species prepared for human shall make such rules and regulations as are to be used in commerce (21 U.S.C. food (21 U.S.C. 604). The FMIA requires are necessary for the efficient execution 603(a)). All amenable species found to that all carcasses and parts found to be of the provisions of the FMIA. FSIS show symptoms of disease are to be set adulterated be condemned (21 U.S.C. regulations and inspection programs are apart and slaughtered separately; the 604). Under the FMIA, a meat or meat designed to verify that livestock are carcasses of such animals are to be food product is adulterated, among handled and slaughtered humanely, and subject to a careful inspection (21 U.S.C. other circumstances, if it bears or that meat and meat food products are

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unadulterated, wholesome, and E. Overview of the Proposed Rule’s FSIS Directive 6100.1, Ante-mortem properly marked, labeled, and packaged. Mandatory Components Livestock Inspection available at http:// F. Overview of the Proposed Rule’s Agency www.fsis.usda.gov/wps/wcm/connect/ Table of Contents of Proposed Rule Impact 2b2e7adc-961e-4b1d-b593- Discussion G. Expected Cost of the Proposed Rule 1. Costs Associated With the NSIS 7dc5a0263504/6100.1.pdf I. Background Components of the Rule ?MOD=AJPERES). Market hog A. Traditional Market Hog Slaughter a. Costs of Additional Establishment establishment personnel segregate Inspection Under Existing Regulations Workers animals that appear to be normal and 1. Description of the Inspection System b. Costs of Capital Improvements: Line healthy from abnormal or unhealthy Under Existing Regulations Configuration and Inspection Stations animals that appear to have 2. Need for Modernization c. Costs of Developing Ante-Mortem B. Regulations for Microbiological Testing condemnable diseases or conditions Written Procedures (e.g., animals exhibiting signs of Under Traditional Inspection d. Ready-to-Cook Standards 1. Generic E. Coli Criteria for Measuring 2. Costs Associated With the Mandatory neurologic conditions, pyrexia, or Process Control Components of the Rule severe lameness) into ‘‘subject’’ pens, 2. Salmonella Pathogen Reduction/HACCP a. Costs of Developing, Composing, where they are subject to additional Performance Standards Training, Monitoring, Recording, and FSIS inspection. FSIS requires these C. Waivers of Regulatory Requirements Verifying Written Sanitary Dressing establishments to document their 1. Waivers to Test New Technology Plans segregation procedures in their HACCP 2. Salmonella Initiative Program Waivers b. Process Control Sampling and Analysis II. Consideration of Need for a New Swine plans or prerequisite programs. FSIS for Microbial Organisms inspectors examine all animals found by Slaughter Inspection System c. Environmental Sampling A. Early Development of the Inspection H. Expected Benefits of the Proposed Rule the establishment to be normal at rest, Models Program 1. Expected Benefits Associated With and five to ten percent of those animals B. Existing HACCP-Based Inspection Public Health in motion. If any animals exhibit signs Models Program 2. Other Benefits Associated With of condemnable conditions, FSIS C. U.S. General Accountability Office Modernizing Existing Regulations inspectors direct establishment (GAO) and the USDA’s Office of the I. Expected Budgetary Impacts Inspector General (OIG) Reports on employees to move the animals to the 1. Agency Staffing ‘‘U.S. Suspect’’ pens for final HIMP 2. Agency Training D. Analysis of HIMP disposition by the FSIS PHV. The FSIS J. Net Benefits 1. FSIS Evaluation of HIMP PHV examines all animals in the K. Alternatives a. Overview of the HIMP Report VII. Regulatory Flexibility Act Assessment ‘‘subject’’ pens, and directs b. Verification by Offline Inspectors of the VIII. E-Government Act establishment employees to move Establishment Executing Its HIMP IX. Executive Order 12988, Civil Justice animals to ‘‘U.S. Suspect’’ pens for final Process Control Plan Under Which Reform disposition. FSIS inspectors observe Establishment Employees Sort X. Executive Order 13175 Acceptable and Unacceptable Carcasses establishment employees performing XI. USDA Nondiscrimination Statement and Parts segregation procedures at least once per XII. Environmental Impact c. Verification of the Establishment month. Because establishment Executing Its HACCP System Under 9 XIII. Paperwork Reduction Act employees are responsible for CFR Parts 416 and 417 XIV. Additional Public Notification identifying and removing market hogs XV. Proposed Regulatory Amendments d. Verification of the Outcomes of the that are not fit for slaughter before FSIS Establishment Process Control Plan, Both I. Background ante-mortem inspection, FSIS inspectors Organoleptic and Microbiologic are presented with healthier animals e. Conclusion of HIMP Report A. Traditional Market Hog Slaughter that are more likely to pass inspection. f. Verification of Humane Handling Inspection Under Existing Regulations E. Public Health Benefits Projected From Therefore, under the voluntary Allocating More Inspection Resources to 1. Description of the Inspection System segregation procedures, FSIS inspectors Food Safety-Related Inspection Under Existing Regulations are able to conduct a more efficient and Activities Under the existing regulations for effective ante-mortem inspection to 1. Market Hog Risk Assessment traditional inspection, FSIS ante- determine whether each animal is fit for 2. Model slaughter. 3. Conclusions of the Market Hog Risk mortem inspectors examine all market Assessment hogs for visible signs of condemnable During post-mortem inspection at all III. Proposed NSIS diseases or conditions while they are at market hog slaughter establishments, A. Live Market Hog Sorting by rest and in motion (see 9 CFR part 309). FSIS online inspectors inspect the head, Establishment Personnel FSIS ante-mortem inspectors direct viscera, and carcass of each animal for B. Post-Mortem Carcass Sorting by establishment personnel to set apart localized defects and direct Establishment Employees and Online animals showing signs of condemnable establishment employees to remove the Carcass Inspection defects through trimming (9 CFR C. Offline Verification Inspection diseases or conditions into separate D. RTC Pork Product ‘‘U.S. Suspect’’ pens for further 310.1(b)(3)). FSIS online inspectors E. Line Speeds Under NSIS examination by the FSIS Public Health perform manual incisions, palpations, IV. Other Proposed Changes That Affect All Veterinarian (PHV). The FSIS PHV and other organoleptic inspections (i.e., Swine Slaughter Establishments determines whether the animals shall be using sight, smell, and touch) to detect A. Procedures To Address Enteric identified as ‘‘U.S. Condemned’’ and signs of disease or contamination. In Pathogens, Fecal Material, Ingesta, and disposed of in accordance with 9 CFR large establishments, up to seven online Milk Contamination as Hazards 309.13 (9 CFR 309.2). inspectors are assigned per line per shift Reasonably Likely to Occur Most establishments under traditional to cover inspection stations for the head, V. Implementation VI. Executive Orders 12866 and 13563 inspection that slaughter only market viscera, and carcass at fixed points A. Request for Comments Summary hogs voluntarily segregate animals that along the slaughter and evisceration B. Need for the Rule show signs of diseases or conditions line. In small or very small C. Overview of the Market from healthy animals before the Agency establishments, one inspector may D. Overview of the Proposed Rule’s NSIS performs ante-mortem inspection (see perform all of the post-mortem

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inspection procedures on each animal. 314.3). FSIS inspectors enter the activities. This necessitates FSIS to FSIS online inspectors identify and number on each ‘‘U.S. Condemned’’ tag allocate significant personnel resources retain carcasses and parts with visible into the Public Health Information to conduct activities that are more animal diseases and conditions. The System (PHIS). Under the existing appropriately the responsibility of the FSIS PHV thoroughly examines retained regulations, most ‘‘U.S. Condemned’’ establishment. As a result, traditional carcasses and parts to determine tags are applied during ante-mortem inspection limits line speeds, even if whether they should be condemned; inspection to animals that arrive dead. establishments can demonstrate that establishment personnel then dispose of Because FSIS inspectors are responsible they are able to produce safe, condemned carcasses under FSIS for removing all of the ‘‘U.S. unadulterated, wholesome products at supervision in accordance with 9 CFR Condemned’’ tags and documenting more efficient rates. It also limits large part 314. each ‘‘U.S. Condemned’’ tag number and high volume market hog slaughter Under the existing regulations for into PHIS, it takes inspectors more time establishments’ incentive to improve traditional inspection, establishments to complete ante-mortem and post- their processing methods and to develop conduct no post-mortem carcass sorting mortem inspections than it would if more efficient slaughter and dressing to identify which carcasses and parts establishments sorted and removed technologies. appear eligible to bear the mark of these animals before FSIS inspection For example, under traditional inspection, which carcasses and parts and maintained records that could be inspection, the maximum line speed contain removable defects correctable verified by FSIS, as appropriate, and authorized for slaughter lines with one through trimming, and which carcasses reported their daily totals to FSIS or two inspectors is partially based and parts should be submitted to FSIS inspectors. upon the distance walked (in feet) by for condemnation because of In addition to the post-mortem the inspector between work stations to generalized diseases or conditions. inspection activities conducted by conduct the sorting activities mentioned These sorting functions are conducted online inspectors, offline inspectors above (see 9 CFR 310.1(b)(3)). For by establishment personnel under conduct additional food safety related slaughter lines with three or more HIMP. Rather, the existing regulations activities such as verifying that inspectors, line speeds may also depend for traditional inspection require establishments’ processing meets their on whether FSIS online inspectors establishments to assign competent HACCP critical limits and verifying observe the back of the carcasses by assistants to take such actions as whether sanitation SOPs are effective. looking in a mirror or whether they directed by FSIS online inspectors after must turn the carcass to observe the 2. Need for Modernization the inspectors have conducted the back of the carcass (see 9 CFR initial sorting activities (see 9 CFR Modernization of market hog 310.1(b)(3)). The maximum line speed 307.2(g)). Therefore, under the existing slaughter inspection is necessary under the existing regulations for regulations for traditional inspection, because traditional inspection was market hogs is 1,106 head per hour establishments rely on FSIS online developed before FSIS issued its (hph) with seven online inspectors. inspectors to effectively control and HACCP regulations, and before the Establishments determine their line direct their processing. Moreover, Agency began targeting its resources to speeds based on their equipment, size because FSIS online inspectors are address public health risks associated and condition of the animals, and their responsible for identifying unacceptable with foodborne pathogens. Traditional ability to maintain process control when carcasses and parts, it takes online inspection obscures the proper roles of operating at a given line speed. inspectors more time to conduct a industry and inspection personnel by Additionally, traditional inspection carcass-by-carcass inspection than assigning to FSIS inspectors restricts establishments’ ability to would be necessary if establishments responsibility for sorting acceptable reconfigure and consolidate lines if they sorted carcasses and parts, trimmed animals from unacceptable animals, determine that they need more space to dressing defects and contamination that finding carcass defects, identifying conduct other activities in their do not impact the FSIS inspectors’ production control problems for the facilities. For example, establishments ability to assess the fitness of the carcass establishment, and verifying corrective slaughtering 1,025 market hogs per hour or part, and identified pathology actions in addition to determining must configure their evisceration lines defects, before the carcasses and parts whether the carcasses meet regulatory to accommodate three online head were inspected. requirements. Additionally, traditional inspectors, three online viscera More FSIS resources also could be inspection requires FSIS to allocate inspectors, and one online carcass devoted to offline inspection activities if significant inspection personnel inspector. The regulations require that initial sorting and tagging functions resources towards online inspection establishments provide an inspection were performed by establishment activities in large and high volume station consisting of five feet of personnel. Under the existing market hog establishments to detect unobstructed line space for each head or regulations, only FSIS inspectors may quality defects and conditions that carcass inspector and, for viscera table direct the application and removal of present minimal food safety risks, thus kills, eight feet for each viscera ‘‘U.S. Condemned’’ tags from animals limiting the resources available for inspector on the inspector’s side of the and carcasses condemned by FSIS offline inspection activities such as table (9 CFR 307.2 (m)(1)). As a result, inspectors on ante-mortem and post- verifying the effectiveness of HACCP the current regulations for traditional mortem inspection (9 CFR 309.13 and plans and sanitation SOPs. FSIS has inspection prevent large and high 310.5). The tag must remain on the concluded, based on the Agency’s volume market hog slaughter carcass until it goes into the tank, or the analysis of the market hog HIMP pilot establishments from consolidating carcass is otherwise disposed of in (discussed in more detail below), inspection stations or otherwise accordance with 9 CFR part 314. conducting more offline activities will reconfiguring their evisceration lines in Establishments are required to denature be more effective in ensuring food safety order to make room for more innovative, condemned carcasses and parts if they and humane handling verification tasks. automated equipment such as head do not have tanking facilities and the Traditional inspection requires dropping equipment, bung equipment carcasses and parts are to be rendered or inspectors to conduct time-intensive (which separates digestive and urinary otherwise disposed of off-site (see 9 CFR ante-mortem and post-mortem sorting organs from pelvic attachments),

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eviscerating equipment, and back saws. resulting from a lower prevalence of organisms other than generic E. coli Traditional inspection is generally carcasses contaminated with (e.g., Salmonella spp. and aerobic plate sufficient for low volume Salmonella, which may in turn lead to count bacteria (APC)) because they have establishments and for establishments fewer human illnesses. While found these organisms to be more that slaughter classes of swine other prevalence of Salmonella measured in relevant indicators of their process than market hogs because these FSIS’s market hog baseline study is low, control. Therefore, FSIS is proposing to establishments typically are less Salmonella is a pathogen of public remove the generic E. coli sampling automated and run at slower line speeds health concern for pork products, and requirements for swine slaughter than larger establishments. the data available are adequate to establishments to give establishments Additionally, traditional inspection estimate the potential changes in more flexibility in monitoring their was developed when visually detectable prevalence with changes in FSIS’s process control and to make the Federal animal diseases such as pneumonias, swine inspection system. meat inspection regulations more erysipelas, hog cholera, cystercercosis, consistent with the Federal poultry parasites, and arthritis were more B. Regulations for Microbiological products inspection regulations. FSIS is prevalent and considered to be more of Testing Under Traditional Inspection proposing that all swine slaughter a concern than they are today. The line 1. Generic E. Coli Criteria for Measuring establishments collect and analyze speed limits prescribed under Process Control carcass samples for microbiological traditional inspection reflect the analysis at the pre-evisceration and The existing regulations require that Agency’s previous focus on the post-chill points in the process. The official swine slaughter establishments detection of visible defects and animal discussion of the proposed testing conduct regular testing for generic E. diseases and do not give establishments requirements is set out later in this coli at the end of the chilling process or the flexibility to address these document. conditions before presenting the after the final wash as a means to verify carcasses and parts to FSIS inspectors. process control (9 CFR 310.25(a)(1)). 2. Salmonella Pathogen Reduction/ Traditional inspection focuses These regulations prescribe HACCP Performance Standards substantial FSIS resources on detecting requirements for collecting the samples, In addition to generic E. coli criteria, visible trim and dressing defects that are obtaining analytical results, and the existing regulations contain not directly related to food safety, maintaining records of such results (9 Salmonella pathogen reduction particularly in light of what is now CFR 310.25(a)(2), (3), and (4)). They also performance standards for market hogs known about the role microbial include criteria for evaluating an (9 CFR 310.25(b)). The codified contamination plays in causing establishment’s generic E. coli testing performance standards are based on the foodborne human illness. The results (9 CFR 310.25(a)(5)). The prevalence of Salmonella found by two traditional inspection model needs to be regulations provide that generic E. coli nationwide microbiological baseline updated in light of the significant testing results that do not meet the surveys conducted from April 1995 to advances that have been made in the criteria described in the regulations March 1996 and from June 1997 to May control or eradication of many animal indicate that the establishment may not 1998. The regulations provide for FSIS diseases that were more prevalent and be maintaining process controls to collect and analyze unannounced were considered to present a greater sufficient to prevent fecal contamination Salmonella samples sets in swine concern when the existing inspection (9 CFR 310.25(a)(6)). If an establishment slaughter establishments to detect systems were designed, particularly in is not meeting the E. coli test results whether these establishments are generally healthy classes of animals criteria, the regulations state that FSIS meeting the pathogen reduction such as market hogs. will take further action as appropriate to performance standards (9 CFR Moreover, the analysis in FSIS’s ensure that all applicable provisions of 310.25(b)(2)). The performance ‘‘Assessment of the Potential Change in the law are being met (9 CFR standards set a maximum number of Human Health Risk Associated with 310.25(a)(6)). Salmonella-positive samples allowable Modernizing Inspection of Market Hog In 2014, FSIS rescinded the per sample set and are defined on a Slaughter Establishments’’ (hereafter regulations that required that poultry product class basis so that an referred to as the market hog risk establishments test carcasses for generic establishment operating at the baseline assessment) conducted by FSIS suggests E. coli to monitor for process control (79 level would have an 80 percent chance a statistically significant correlation FR 49565, August 21, 2014). The final of meeting the standard. Establishments between increased scheduled and regulations replaced the generic E. coli are required to take corrective actions unscheduled offline inspection regulations with new testing when FSIS determines that they are not procedures and a reduction in the requirements that allow establishments meeting the performance standards (9 prevalence of Salmonella in market hog to develop sampling plans that are more CFR 310.25(b)(3)(i) and (ii)). establishments. Projecting out illness tailored to the specific establishment, Under the regulations, an reductions based on reduction in and thus are more effective in establishment’s failure to take the Salmonella prevalence in 35 plants monitoring their specific process control corrective actions necessary to comply results in wide uncertainty, but the than the former generic E. coli criteria. with the Salmonella performance model confidently estimates that the The Agency concluded that the use of standards, or an establishment’s failure level of protection from Salmonella generic E. coli as an indicator for to meet the standards on the third illnesses would be at least as good as the process control may not be as useful in consecutive series of FSIS-conducted current system. Based on these results, certain poultry slaughter operations as tests for that product, constitutes a the redeployment of Agency resources originally thought. Therefore, FSIS failure to maintain sanitary conditions dedicated to online inspection under made the change to allow poultry and to maintain an adequate HACCP the traditional inspection system to establishments to use other more plan (9 CFR 310.25(b)(3)(iii)). The unscheduled offline activities, such as relevant indicators of process control. regulations provide that such failure increased HACCP and sanitation SOP The Agency is aware that most swine will cause FSIS to suspend inspection verification, has the potential to slaughter establishments currently services (9 CFR 310.25(b)(3)(iii)). contribute to improved food safety conduct additional sampling for micro- However, the Agency’s ability to

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directly enforce the pathogen reduction 310.25(b) because verifying the codified procedures, equipment, or processing performance standards has been limited standards was not a good use of Agency techniques may be tested to facilitate since 2001, after a ruling by the U.S. resources and the standards have not definite improvements. Under these Court of Appeals for the Fifth Circuit in been used since 2011. Instead, FSIS has regulations, FSIS may only grant Supreme Beef Processors, Inc. v. USDA. decided to focus on its resources on waivers from the provisions in the In that case, the court enjoined FSIS sampling raw pork parts for pathogens regulations that are not in conflict with from suspending inspection services of public health concern, as well as for the purposes or provisions of the FMIA against a meat grinding operation for indicator organisms. or PPIA (9 CFR 303.1(h) and 381.3(b)). failure to meet the Salmonella FSIS is currently addressing FSIS decides whether to grant performance standards. Since that time, Salmonella through the Salmonella requests for waivers based on proposals FSIS has used Salmonella failures as a Initiative Program (SIP) described and documentation submitted by basis to conduct an in-depth evaluation below. In addition, FSIS has published establishments to demonstrate that the of the establishment’s HACCP systems, a compliance guideline to help official use of a new technology is scientifically including its HACCP plan and establishments control and reduce the sound; that it will facilitate definite sanitation SOPs. spread of Salmonella in hog slaughter improvements; and that issuing the From August 2010 to August 2011, facilities (79 FR 633, January 6, 2014). waiver will not conflict with the FSIS conducted a third market hog The guidance is available on the FSIS provisions of the FMIA or PPIA.1 If FSIS baseline survey to estimate the national web page at: http://www.fsis.usda.gov/ determines that the information prevalence of Salmonella in market wps/portal/fsis/topics/regulatory- submitted by an establishment supports hogs (The Nationwide Microbiological compliance/compliance-guides-index. the requested waiver, the Agency will Baseline Data Collection Program: The guidance provides information on waive the appropriate provisions in the Market Hogs Survey August 2010–2011 best practices that may be applied at a regulation for a limited period of time available at http://www.fsis.usda.gov/ hog slaughter facility to prevent, to allow the establishment to conduct an wps/wcm/connect/d5c7c1d6-09b5-4dcc- eliminate, or reduce levels of in-plant trial. The purpose of the in- _ _ 93ae-f3e67ff045bb/Baseline Data Salmonella on hogs at all stages of plant trial is to gather data on the effects _ _ Market Hogs 2010-2011.pdf?MOD= slaughter and dressing. Importantly, of the use of the new technology. FSIS AJPERES). The third market hog FSIS has identified microbial reviews the data that is developed in the baseline survey included 253 performance measures, as guidance, at trial to determine whether they establish establishments that produce the pre-evisceration and post chill that the purpose of the waiver is being approximately 99.9 percent of market points. met. hogs slaughtered in the United States. Moreover, FSIS is currently For the third baseline survey, FSIS conducting exploratory sampling of raw 2. Salmonella Initiative Program collected samples in 152 random pork products for pathogens of public Waivers establishments from market hog health concern, as well as for indicator Under SIP, the Agency grants meat carcasses at two points in the slaughter organisms (80 FR 12618). A summary of and poultry slaughter establishments process: Pre-evisceration and post-chill. the Phase I positive sampling results waivers of regulatory requirements on The Salmonella percent positive rate at collected from May 2015 to November condition that they will conduct regular pre-evisceration was 69.64 percent, but 2015 are as follows: 16.7 percent microbial testing and share the resulting at post-chill it was reduced to 2.70 Salmonella, 1 percent Campylobacter, data with FSIS. The Agency described percent. The third baseline survey’s 4.5 percent Methicillin-Resistant preliminary details of SIP in a January percent positive rate at post-chill was Staphylococcus aureus (MRSA), 1 28, 2008, Federal Register notice (73 FR significantly lower than the rates found percent Toxoplasma gondii, 1.5 percent 4767–4774) and announced its final in the two earlier surveys mentioned Yersinia enterocolitica, 0 percent E. coli terms and conditions in the July 13, above, which reported Salmonella O157:H7, and 5 percent non-O157 shiga 2011, Federal Register notice (76 FR percent positive rates of 8.7 percent and toxin-producing E. coli (non-O157 41186). SIP benefits public health in 6.9 percent, respectively. Based on the STEC). FSIS has posted more detailed that it encourages slaughter data from the third baseline survey, sampling results on its website at establishments to conduct testing for FSIS estimated prevalence of https://www.fsis.usda.gov/wps/wcm/ microbial pathogens, which is a key Salmonella in market hogs was 1.66 connect/68f5f6f2-9863-41a5-a5c4- feature of effective process control, and percent with a 95 percent confidence 25cc6470c09f/Sampling-Project-Results- to respond to testing results by taking interval between 0.82 percent and 2.51 Data.pdf?MOD=AJPERES. The Agency steps when necessary to regain process percent. Because the estimated may develop pathogen reduction control. In addition, SIP enables FSIS to prevalence of Salmonella was low, and performance standards for pork parts at use establishment data to inform FSIS did not find enough pathogen a later date. In 2019, the Agency will Agency policy aimed at enhancing positives to justify the resources needed use this data to determine whether public health protection. (e.g., time and supplies) to conduct standards or additional policies (e.g., SIP establishments test for carcass swabbing, the Agency training, guidance to industry, or Salmonella, Campylobacter (if determined that this type of sampling instructions to field personnel) are applicable), and generic E. coli or other was not an effective use of resources for needed to address Salmonella in pork indicator organisms and share all verifying process control. As a result, products. sample results with FSIS. FSIS did not develop new Salmonella Establishments that had been operating performance standards for market hogs. C. Waivers of Regulatory Requirements under regulatory waivers before FSIS Rather, in September 2011, FSIS 1. Waivers To Test New Technology implemented the SIP were required to discontinued its Salmonella verification participate in SIP or forfeit their The regulations in 9 CFR 303.2(h) and sampling program for market hogs to waivers. The list of establishments make better use of its resources. 381.3(b) provide for the Administrator Therefore, FSIS is proposing to to waive for limited periods any 1 For Agency New Technology waiver procedures, eliminate the pathogen performance provisions of the regulations to permit see http://www.fsis.usda.gov/wps/portal/fsis/topics/ standards for market hogs in 9 CFR experimentation so that new regulatory-compliance/New-Technologies.

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participating in SIP is available on personnel were responsible for sorting closely examining a sample of carcasses FSIS’s website at https://www.fsis. and removing animals unfit for for food safety defects to ensure that the usda.gov/wps/wcm/connect/188bf583- slaughter and identifying and removing establishment’s process was under 45c9-4837-9205-37e0eb1ba243/Waiver_ abnormal carcasses and parts, and FSIS control and that adulterated carcasses Table.pdf?MOD=AJPERES. To date the inspection personnel performed and parts were not getting past the regulations waived for swine slaughter inspection activities that focused on the establishment sorters. On remand, the establishments under SIP include: 9 areas of greatest risk in the hog slaughter district court found that HIMP, as CFR 310.1(b)(3)— line speed; 9 CFR inspection system in each modified, complied with both the 310.25(a)— generic E. coli testing 2; 9 establishment. applicable statutory provisions and the CFR 310.25(b)—Salmonella In 1998, the American Federation of opinion issued by the Court of Appeals. performance standards; 9 CFR Government Employees, several FSIS The plaintiffs again appealed to the 310.18(a)— contamination of organs; 9 inspectors, and a public interest Court of Appeals for the D.C. Circuit. CFR 310.11—cleaning and hair removal; organization filed suit to enjoin FSIS The plaintiffs argued that the modified and 9 CFR 310.14—handling of bruised from implementing the HIMP model. inspection procedures were not in parts. All swine slaughter The plaintiffs alleged that HIMP compliance with the Court of Appeals’ establishments operating under SIP violated the requirement in the FMIA prior opinion because FSIS had waivers will continue to operate under that government inspectors conduct a delegated some inspection duties to waivers and will continue to conduct post-mortem inspection of each carcass. plant employees who were responsible testing under SIP if their waivers are not Specifically, the FMIA provides that the for sorting defective carcasses and addressed in the final rule resulting Secretary shall cause to be made by making preliminary decisions regarding from this proposal. If their waivers are inspectors a post-mortem inspection of adulteration. The Court of Appeals addressed in the final rule resulting the carcasses and parts thereof of all rejected this argument, finding that the from this proposal, their waivers will amenable species to be prepared at any FMIA does not prohibit plant employees end. slaughtering, meat-canning, salting, from paring down the overall number of packing, rendering, or similar carcasses by sorting and removing II. Consideration of Need for a New carcasses before they reach the Federal Swine Slaughter Inspection System establishment (21 U.S.C. 604). The district court upheld HIMP, finding that inspector (AFGE v. Veneman, 284 F.3d A. Early Development of the Inspection the word ‘‘inspection’’, as used in the 125, 131 (D.C. Cir. 2002)). The Court Models Program statute, does not necessarily mandate a held that the modified inspection model In 1996, FSIS published its Pathogen direct, physical examination of each program satisfied the FMIA because it Reduction/HACCP (PR/HACCP) final carcass by an FSIS inspector, and that required Federal inspectors to rule as the first step of a comprehensive the model program was a rational policy personally examine all hog carcasses, initiative to target the Agency’s judgment within the discretion afforded heads, and viscera, as required by 21 resources to address the public health to the Secretary. U.S.C. 604. The plaintiffs also argued that the line risks associated with foodborne The plaintiffs appealed, and the Court speeds allowed in the HIMP plants were pathogens, which cannot be detected by of Appeals for the District of Columbia too fast to allow Federal inspectors to organoleptic inspection (61 FR 38868, Circuit reversed the district court’s make a critical appraisal of each carcass. July 25, 1996). Under FSIS’s PR/HACCP decision. The Court of Appeals found The Court found that FSIS’s decision to regulations, establishments are required that the FMIA requires Federal allow higher line speeds was reasonable to develop and implement a system of inspectors—rather than plant in light of the fact that establishment preventive controls to ensure that their employees—to make the decision employees are required to sort carcasses products are safe. This approach gives whether each carcass is adulterated and parts and identify defects prior to establishments more flexibility to within the meaning of the statute (AFGE Federal inspection, resulting in fewer determine how they can best meet the v. Glickman, 215 F.3d 7, 11 (D.C. Circ. adulterated carcasses and parts being Agency’s regulatory requirements. FSIS 2000)). The case was remanded to the presented for Federal inspection. The verifies the adequacy and effectiveness district court for further proceedings. Court also noted that although the FMIA of establishments’ HACCP systems. In response to the Court of Appeals’ delineates what must be inspected and In 1997, in order to improve food opinion, FSIS modified HIMP to 3 by whom, it does not define exactly safety and the effectiveness of position up to three online inspectors what constitutes an inspection. The inspection systems, reduce the risk of at fixed locations along the slaughter court concluded that HIMP, as foodborne illness in the United States, lines: In the area where the carcass and modified, reflected a reasonable design remove unnecessary regulatory head were separated; where the carcass of an inspection system by the agency obstacles to innovation, and make better and viscera were separated; and at the charged with responsibility for use of the Agency’s resources, FSIS pre-wash carcass verification location. administering the FMIA and that it announced, in a Federal Register notice, These inspectors were responsible for would rely on the Agency’s experience that the Agency would be developing a examining the head, viscera, and carcass and informed judgment in evaluating new HIMP study (62 FR 31553, June 10, of each hog. The modified models the validity of the system under the law. 1997). During the HIMP study, FSIS project also included FSIS offline Under these circumstances, the Court of would design and test various new inspectors who were responsible for Appeals upheld HIMP, as modified. inspection models in a series of trials in conducting HACCP and sanitation volunteer meat and poultry slaughter system verification activities and for B. Existing HACCP-Based Inspection establishments. Models Program 3 FSIS is able to assign fewer than three online Under the initial HIMP inspection The revised HIMP study was initiated models approach, establishment inspectors if the physical configuration of the slaughter line allows one inspector to inspect both in five market hog slaughter the head and viscera or the viscera and carcass. For establishments on a waiver basis. 2 Some establishments continue to sample for example, in one establishment, the chain that generic e. coli to monitor their process control. The carries the carcass is adjacent to the viscera pans, Similar to the voluntary segregation SIP waivers allow these establishments to use which enables one inspector to examine both the procedures described above in alternative sampling locations and frequencies. carcass and viscera. establishments that slaughter only

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market hogs under traditional carcasses, thereby correcting most evaluate whether the program resulted inspection, establishment personnel sort removable defects, before the FSIS in a measurable improvement of the animals before they are presented to online inspectors perform their carcass- inspection process; allowed one HIMP FSIS ante-mortem inspectors under by-carcass inspection. plant to forgo the standard FSIS policy HIMP. Establishment personnel sort Under HIMP, offline inspection to manually inspect viscera; and did not animals that appear to be healthy into consists of system verification activities have formal agreements with the HIMP ‘‘Normal’’ pens and animals that appear through which FSIS continuously plants. In response to OIG, FSIS agreed to have condemnable diseases or monitors and evaluates establishment to complete an evaluation of HIMP conditions into ‘‘Subject’’ pens. process control. FSIS conducts more market hog establishments. Establishment personnel remove and offline, food safety related verification D. Analysis of HIMP dispose of dead and moribund animals inspection activities under HIMP than and animals suspected of having central under traditional inspection. Some 1. FSIS Evaluation of HIMP nervous system disorders (CNS) or examples of food safety related In 2014, in response to the GAO and pyrexia. Under HIMP, FSIS inspectors verification inspection activities OIG reports, FSIS conducted a examine all animals found by the include: HACCP, sanitation SOP, and comprehensive analysis of data establishment to be normal at rest, and other prerequisite program verification collected from the operation of HIMP in five to ten percent of those animals in procedures, including 24 carcass market hog establishments and prepared motion. If any animals exhibit signs of verification checks per shift specifically a written report (the ‘‘Hog HIMP condemnable conditions, FSIS for generalized diseases and conditions Report’’) that presents a thorough inspectors direct establishment and for contamination (compared to 11 evaluation of the models tested. Based employees to move the animals to the carcass verification checks per shift on this evaluation, FSIS concluded that ‘‘U.S. Suspect’’ pens for final under traditional inspection). FSIS also market hog slaughter establishments disposition by the FSIS PHV. FSIS PHVs conducts more offline humane handling participating in HIMP were performing examine all animals in the verification tasks under HIMP than as well as comparable large non-HIMP establishment’s ‘‘Subject’’ pens, and under traditional inspection. market hog establishments and meeting FSIS has concluded that the HIMP direct establishment employees to move FSIS requirements for operating under model has a number of benefits, such as animals to ‘‘U.S. Suspect’’ pens for final waivers through the HIMP project. focusing FSIS inspection personnel on disposition by the FSIS PHV. The FSIS A summary of the Hog HIMP Report the areas of greatest risk in the hog PHV determines if any animals must be is provided below. The full Hog HIMP slaughter system and providing an identified as ‘‘U.S. Condemned’’ and Report is available on the FSIS website incentive to establishments to improve disposed of in accordance with 9 CFR at: http://www.fsis.usda.gov/wps/wcm/ and innovate, while ensuring effective 309.13 (9 CFR 309.2). While connect/f7be3e74-552f-4239-ac4c- online inspection. establishment personnel sort and 59a024fd0ec2/Evaluation-HIMP-Market- remove animals unfit for slaughter, only C. U.S. General Accountability Office Hogs.pdf?MOD=AJPERES. Before FSIS inspectors have the authority to (GAO) and the USDA’s Office of the implementation of the HIMP project, an condemn an animal. FSIS inspectors Inspector General (OIG) Reports on independent consulting firm, Research observe establishment employees HIMP Triangle Institute (RTI) collected performing sorting procedures at least baseline organoleptic and twice per shift under HIMP compared to In 2013, the U.S. General Accountability Office (GAO) and the microbiological data in the five market at least once per month under the hog slaughter establishments that voluntary segregation procedures USDA’s Office of the Inspector General (OIG) evaluated FSIS’s HIMP pilot study volunteered to participate in the HIMP permitted under traditional inspection program. These data reflect the of market hogs. and issued findings and recommendations.45 GAO identified performance of the establishments Under HIMP, post-mortem inspection strengths in the pilot study, including under traditional inspection and is conducted by up to three online that of giving plants responsibility and provided the basis to establish HIMP inspectors who visually inspect the flexibility for ensuring food safety and performance standards for food safety head, viscera, and carcass of each hog at quality and allowing FSIS inspectors to defects and non-food safety ‘‘Other fixed locations on the evisceration line. focus more on food safety activities. Consumer Protection’’ (OCP) defects. Before FSIS online inspection, However, GAO also identified what it FSIS established three categories of establishment personnel sort carcasses believed to be data gaps in the HIMP food safety related performance and parts and trim dressing defects and pilot study. GAO recommended that standards under HIMP for these contamination (e.g., hair, bruises, feces, FSIS collect and analyze information to conditions: ‘‘FS–1’’ addresses infectious ingesta, and milk). Establishment determine if the HIMP pilot study is conditions (e.g., septicemia, toxemia, employees also mark with ink localized meeting its purpose, and FSIS agreed pyemia, and cysticercosis); ‘‘FS–2’’ pathology defects intended for removal with the recommendation. addresses contamination from fecal under FSIS supervision (e.g. localized The OIG report also included material, ingesta, and milk; and ‘‘FS–3’’ nephritis and localized arthritis) and recommendations related to HIMP addresses certain conditions identified carcasses and parts intended for procedures. According to the OIG, FSIS at ante-mortem (e.g. moribund, pyretic, disposal under FSIS supervision (e.g., did not adequately oversee the HIMP and neurologic conditions). FSIS has a carcasses and parts with malignant program because the Agency did not zero tolerance policy for food safety lymphoma). Online inspection is conditions identified as FS–1, FS–2, and conducted much more efficiently and 4 GAO, 2013. More Disclosure and Data Needed FS–3 to protect consumers from effectively under HIMP than under to Clarify Impact of Changes to Poultry and Hog conditions that may be harmful. traditional inspection because Inspections, http://www.gao.gov/assets/660/ Therefore, the HIMP performance establishment personnel have already 657144.pdf. standard for food safety defects was set 5 OIG, 2013. Food Safety and Inspection Service— sorted carcasses and parts, trimmed Inspection and Enforcement Activities at Swine at zero. dressing defects and contamination, and Slaughter Plants, https://www.usda.gov/oig/ FSIS established the performance identified pathology defects on the webdocs/24601-0001-41.pdf. standard for non-food safety OCP

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defects based on the performance level period CY2011 is not included in the establishment compared to an average of of the establishment representing the Hog HIMP Report, and the analysis of 14,099 PHR verification tasks per non- 75th percentile for each category of OCP CY2006 through CY2010 data is HIMP establishment. Thus, FSIS defects (i.e., slightly below the fourth of separate from the CY2012 through inspectors performed 1.4 times more of the five baseline results for each CY2013 data. the offline inspection verifications of category). FSIS established three Across HIMP and non-HIMP mandatory regulations in HIMP market categories of OCP performance establishments, analyses compared the hog establishments than in non-HIMP standards for various types of trim and number of offline inspection market hog establishments. The HIMP dressing defects that primarily affect the procedures, the rates of health-related Report concluded that this increased quality of products: ‘‘OCP–1’’ addresses regulatory non-compliances, Salmonella level of offline inspection activities carcass pathology defects (e.g., arthritis, positive rates, and violative chemical provides increased assurance that HIMP emaciation, and erysipelas) and was set residue rates. FSIS evaluated offline establishments are maintaining OCP and at 4.1 percent of carcasses, ‘‘OCP–2’’ inspection procedures to determine food safety defects at levels that are to addresses visceral pathology defects whether comparable levels of inspection or less than the levels in non-HIMP (e.g., cystic kidneys, enteritis, and are being performed in HIMP establishments. nephritis) and was set at 7.2 percent of establishments compared to non-HIMP c. Verification of the Establishment carcasses, and ‘‘OCP–3’’ addresses establishments. The Hog HIMP Report Executing Its HACCP System Under 9 miscellaneous defects such as bile, found that establishments participating CFR Parts 416 and 417 bruises, and skin lesions and was set at in HIMP performed as well as 20.5 percent of carcasses. The HIMP comparable large non-HIMP The sanitation SOP regulations in 9 performance standards were finalized in establishments and met the Agency’s CFR 416 and the HACCP regulations in November 2000 (see 65 FR 65828, requirements for participating in the 9 CFR 417 are among the regulations November 2, 2000). To participate in the HIMP project. most strongly related to public health. program, establishments operating The Hog HIMP Report found that in b. Verification by Offline Inspectors of CY2010, FSIS inspectors performed 1.5 under HIMP are required to maintain the Establishment Executing Its HIMP process control plans to meet the times more offline sanitation SOP and Process Control Plan Under Which HACCP inspection verifications of performance standards for food safety Establishment Employees Sort and non-food safety OCP defects. The public health-related regulations in Acceptable and Unacceptable Carcasses HIMP than non-HIMP market hog HIMP performance standards are a and Parts measure for comparing the performance comparison establishments. In CY2012 of establishments operating under the The Hog HIMP Report found that the and CY2013, FSIS inspectors performed HIMP inspection system with rate of ante- and post-mortem sorting by 1.1 times more offline sanitation SOP performance when operating under the HIMP establishment personnel was and HACCP inspection verifications of current non-HIMP, traditional comparable to the rate of ante- and post- public health-related regulations in inspection system. mortem condemnation by FSIS HIMP than non-HIMP market hog inspectors at non-HIMP market hog comparison establishments. a. Overview of the HIMP Report establishments (3.0 per 1,000 hogs The regression analysis of historical The Hog HIMP Report describes compared to 2.7 per 1,000 hogs, data that was included in FSIS’s ‘‘Risk FSIS’s microbiological and inspection respectively). The Hog HIMP Report Assessment for Guiding Public Health- findings in the five market hog slaughter also found that FSIS inspectors in HIMP Based Poultry Slaughter Inspection,’’ establishments participating in HIMP establishments performed more offline which was used to inform the final rule and compares them with 21 non-HIMP inspection activities than in non-HIMP ‘‘Modernization of Poultry Slaughter establishments of comparable establishments to verify that the Inspection’’ (79 FR 49565), showed a production volume, line speed, and establishments are executing their HIMP statistically significant correlation days of operation. The evaluation is slaughter process control plans. In between unscheduled offline inspection based on establishment performance CY2010, FSIS inspectors performed an procedures and reduction in the results for calendar years CY2006 average of 2,061 offline verification prevalence of Salmonella and through CY2010, and CY2012 through inspections per HIMP market hog Campylobacter positive samples. Based CY2013. Establishment performance establishment compared to an average of on these modeling results, FSIS thought results from CY2006 to CY2010 are 1,482 offline verification inspection it was reasonable to conclude that the based on data from the previously used procedures per non-HIMP redeployment of Agency resources to Performance Based Inspection System establishment. Accordingly, FSIS unscheduled offline activities was likely (PBIS) database and results from inspectors performed 1.4 times more to contribute to improved food safety CY2012 to CY2013 are based on data offline verification inspection resulting from a lower prevalence of from the new Public Health Information procedures in HIMP market hog carcasses contaminated with Salmonella System (PHIS) database. FSIS began establishments than in non-HIMP and Campylobacter, which in turn could transitioning establishments from PBIS market hog establishments. In CY2013, lead to fewer human illnesses. to the PHIS in April 2011. The period FSIS inspectors performed an average of Depending on how reallocation of April 2011 to December 2011 was a 19,180 Public Health Regulation (PHR) 6 inspection activities was implemented, transitional period during which the verification tasks per HIMP market hog it was likely that changes in off-line inspection results for some inspection could have resulted in a establishments were recorded under 6 PHRs consists of regulations and specific decrease in the numbers of positive PBIS, while others were recorded under provisions of regulations that have higher rates of microbial samples in FSIS-regulated noncompliance three months before a pathogen PHIS. The data under the two systems positive or enforcement action. The inclusion of young chicken and young turkey are not completely compatible because provisions of regulations in the PHR list allows establishments. Specifically, the inspection task codes and FSIS to focus on specific health related provisions scenario that only increased noncompliance records (NRs) were of regulations that may be most informative for unscheduled inspection procedures prioritizing Food Safety Assessments (FSAs). FSAs recorded differently in PHIS than in are in-depth evaluations of an establishment’s food performed much better than the PBIS. For this reason, the transitional safety system. FSAs can be routine or for cause. scenario that did not target specific

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types of procedures, and the results generated sampling when the FSIS PHV by performing Humane Activities suggest a reasonable degree of suspects that an animal may have a Tracking System (HATS) tasks that are confidence that the discriminate violative level of chemical residue. The divided into nine categories. The HATS scenario would do no harm. That Hog HIMP Report found no differences tasks provide FSIS with data on the time poultry slaughter risk assessment is in the number of scheduled directed that FSIS inspectors spend verifying available on FSIS’s website at http:// samples collected in the HIMP market whether (1) establishments adapt their www.fsis.usda.gov/wps/portal/fsis/ hog establishments and those in the facilities to inclement weather; (2) topics/regulatory-compliance/haccp/ non-HIMP market hog comparison humanely handle livestock during truck haccp-based-inspection-models-project/ establishments. However, the Hog HIMP unloading; (3) provide water and feed to himp-study-plans-resources/poultry- Report found that FSIS offline livestock in holding pens; (4) humanely slaughter-inspection. The risk model inspectors at the HIMP market hog handle livestock during ante-mortem and model results are also posted on- establishments were able to collect 2.7 inspection; (5) humanely handle ‘‘U.S. line as a technical support document for times more inspector-generated residue Suspect’’ and disabled livestock; (6) the risk assessment on the FSIS website. samples than inspectors at the non- move livestock without excessive The market hog risk assessment uses a HIMP market hog comparison prodding or the use of sharp objects similar approach and model as the establishments for CY2009–2010, and after ante-mortem inspection; (7) poultry slaughter risk assessment and 1.7 times more for CY2012–2013 prevent livestock from slipping and estimates the reduction in illnesses because the inspectors had more time to falling; (8) effectively administer likely to result from the reallocation of conduct offline activities. Data from stunning methods that produce inspectors contemplated by this FSIS’s residue sampling program unconsciousness in the animals; and (9) proposed rule. The market hog risk showed that from CY2006 to CY2010, ensure that animals do not regain assessment is discussed in more detail the number of samples that tested consciousness throughout the shackling, below. positive for violative levels of chemical sticking, and bleeding process. FSIS residues in HIMP market hog d. Verification of the Outcomes of the inspectors enter the hours devoted to establishments were not statistically Establishment Process Control Plan, verifying humane handling activities for significantly different from those in the Both Organoleptic and Microbiologic the HATS categories. The data is non-HIMP market hog comparison entered into PHIS in one-quarter hour To assess the microbiological establishments (zero versus six (0.057 increments (e.g., .25, .5, .75, 1.0). outcomes of HIMP establishments’ percent of samples)). However, from The Hog HIMP Report did not address process control plans, the Hog HIMP CY2012 to CY2013, the amount of compliance with the HMSA, but FSIS Report analyzed data from FSIS’s samples that tested positive for violative reviewed HATS task data in PHIS from Salmonella verification program. For levels of chemical residues in HIMP January 2013 through September 2015 the years CY2006–CY2009, the market hog establishments was and compared the number of offline differences in Salmonella positive rates statistically significantly lower than humane handling activities performed between HIMP market hog non-HIMP market hog comparison in five HIMP market hog establishments establishments and non-HIMP establishments (nine violative levels comparison establishments were not (0.15 percent of samples) versus 115 and the same 21 comparable large non- statistically significant for any of the (0.76 percent of samples). The Hog HIMP market hog establishments that years. The Hog HIMP Report also HIMP Report explained that this FSIS used in the Hog HIMP Report. The analyzed data from FSIS’s Salmonella difference could suggest that the HIMP Agency found that FSIS inspectors baseline study on market hog slaughter market hog establishments are spent more time verifying that specific establishments, conducted from August exercising active control of potential humane handling and slaughter 2010 to August 2011. The Salmonella chemical hazards in their products, and requirements were met in HIMP market positive rates in HIMP market hog that this approach may result from hog establishments than in non-HIMP establishments were not statistically better control over contract grower market hog establishments. FSIS significantly different from those in the relationships by the five HIMP market inspectors devoted approximately 5.33 subset of 21 non-HIMP comparison hog establishments. hours per shift to verifying humane establishments. This is probably the handling activities for the HATS result of the small sample size relative e. Conclusion of HIMP Report categories in HIMP market hog to the low Salmonella positive rate. The Hog HIMP Report concluded that establishments compared to However, in the August 2010 to August HIMP market hog establishments are approximately 4.29 hours per shift in 2011 baseline study the Salmonella receiving more offline food safety the 21 non-HIMP market hog positive rates in HIMP market hog related inspection verification checks comparison establishments. FSIS also establishments were statistically than the non-HIMP market hog compared the rate of humane handling significantly lower than those in all 147 comparison establishments, and that the NRs issued in HIMP market hog non-HIMP market hog establishments HIMP inspection system, which establishments and non-HIMP market (which included the subset of 21 non- provides for increased offline inspection hog establishments. FSIS inspectors HIMP comparison establishments, as activities that are directly related to food documented fewer humane handling well as all other non-HIMP market hog safety, results in greater compliance NRs in HIMP market hog establishments establishments) (0.65 percent versus with sanitation and HACCP regulations than in non-HIMP market hog 3.05 percent). (9 CFR parts 416 and 417); carcasses establishments. From January 2013 The Hog HIMP Report also analyzed with equivalent or lower levels of through September 2015, FSIS recorded data from FSIS’s residue sampling Salmonella contamination; and 11 humane handling NRs in five HIMP program for chemical contaminants carcasses with lower levels of violative market hog establishments and 117 NRs including approved and unapproved chemical residues. in the 21 non-HIMP market hog veterinary drugs, pesticides, and comparison establishments. It should be environmental compounds. FSIS f. Verification of Humane Handling noted that none of the 11 NRs recorded conducts directed sampling scheduled FSIS inspectors verify that in the HIMP establishments by FSIS Headquarters and inspector- establishments comply with the HMSA documented market hogs being forced to

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move faster than normal walking speeds subsequent possible reductions in procedures, is likely to contribute to to keep up with faster evisceration line human illnesses attributable to that food safety resulting from a lower speeds. The data demonstrate that HIMP pathogen. FSIS paired inspection data prevalence of carcasses contaminated establishments have higher compliance with Salmonella prevalence data for the with Salmonella, which in turn we with humane handling regulations than same establishments and timeframes. As expect to lead to fewer human illnesses. non-HIMP establishments, and that explained above, FSIS based this risk In answer to the first risk-management increased offline inspection may assessment model on the model for the question, the market hog risk improve compliance with the HMSA. risk assessment that FSIS used to inform assessment results suggest that, the final rule ‘‘Modernization of Poultry depending on how reallocation of E. Public Health Benefits Projected From Slaughter Inspection’’ (79 FR 49565). inspection activities is implemented, it Allocating More Inspection Resources to FSIS employed a stochastic is likely that changes in offline Food Safety-Related Inspection simulation model using multi-variable inspection would not result in an Activities logistic regressions to identify increase in the prevalence of Salmonella 1. Market Hog Risk Assessment correlations between (1) the numbers of in hog carcasses, and could even result offline food-safety inspection in a decrease in the prevalence of FSIS completed a quantitative risk Salmonella in hog carcasses. assessment to determine how procedures, both scheduled and unscheduled, along with the numbers of Specifically, the scenario that performing a greater number of offline simultaneously increases unscheduled inspection procedures in market hog non-compliances and scheduled-but- not-completed procedures, and (2) and scheduled inspection procedures slaughter establishments might affect and decreases scheduled but not the number of human illnesses from contamination of hog carcasses with 7 performed procedures performs better Salmonella. These offline inspection Salmonella. The correlations were used to predict the potential effect that than scenarios that target the three procedures primarily involve activities specific types of procedures one at a that FSIS inspection personnel perform devoting more resources to those offline procedures might have on human time. Under the scenario where all types to verify the effectiveness of of procedures are targeted for increase, establishment sanitary operations and illness attributable to the consumption of pork products. Stochastic simulations with resulting decrease in scheduled but other food safety-related activities. The not performed procedures and decrease Hog HIMP Report, discussed above, were used to account for statistical uncertainty in the estimates relating in instances of observed and reported found that FSIS inspectors performed establishment non-compliance, the more offline inspections to verify inspection procedures in an establishment to detection of model estimates an average decrease of compliance with sanitation SOP and 2,533 Salmonella-related illnesses per HACCP regulations in HIMP Salmonella in samples from hog carcasses. Illness estimates were based year attributable to pork products. FSIS establishments than they do in non- assumes that 65,869 expected annual HIMP establishments. The risk on data from the Centers for Disease Control and Prevention (CDC), and Salmonella illnesses are attributed to assessment is available for viewing by consumption of pork products. Thus, a the public in the FSIS docket room and uncertainty distributions were used to account for the variability in annual reduction of 2,533 expected Salmonella on the FSIS website at: http:// illnesses annually, would reflect a 3.8 www.fsis.usda.gov/regulations_&_ Salmonella illnesses and statistical uncertainty about the relationship percent reduction in Salmonella policies/Proposed_Rules/index.asp. illnesses attributable to pork products. between the pathogen prevalence levels FSIS developed the market hog risk Responding to the second question, at the establishments and the assessment to help the Agency inform modeling and scenario analysis results its judgement about the potential impact corresponding annual number of suggest that increasing scheduled and of changes to FSIS’s swine inspection illnesses that could be attributed to the unscheduled procedures and decreasing system on risks to public health pathogens. scheduled but not performed associated with pork products. To give 3. Conclusions of the Market Hog Risk procedures would be most effective in the Agency the information it needed, Assessment reducing pathogen occurrence on the market hog risk assessment focused carcasses because of consistency in the The regression analysis of historical on three risk management questions: decision variable parameter’s effect data included in the market hog risk (1) What predicted effects will various across all models. However, each assessment showed a statistically models for increasing the number of category of offline procedures relates to significant correlation between (1) offline inspection tasks in non-HIMP an individual decrease in Salmonella establishments have on human increased scheduled and unscheduled contaminated carcasses which if any salmonellosis rates? offline procedures and decreased one of the three categories or a (2) Where can inspectors be relocated scheduled but not performed combination of categories of offline to have the most impact toward procedures and (2) reduction in the procedures were implemented still reducing Salmonella prevalence and prevalence of Salmonella positive would result in decreased corresponding human illness? samples. Based on these results, the contamination, but less than if the (3) What is the magnitude of redeployment of Agency resources to scenario combining all three decision uncertainty about the predicted scheduled and unscheduled offline variables was adopted. prevalence of pathogens and activities, along with a reduction in In answer to the third risk- corresponding illness effects? scheduled but not performed management question, on the uncertainty of the results for pathogen 2. Model 7 Scheduled procedures are assigned to inspectors at an establishment by PBIS or PHIS. Unscheduled prevalence and illness reductions, FSIS developed a risk assessment procedures are performed according to inspector FSIS’s modeling approach includes the model for exploring the potential needs at an establishment and may include inherent uncertainty about the relationships between current variations verification checks for fecal, ingesta, and milk, or relationship between the frequency of they may be a response to unforeseen hazards or in inspection personnel assignments unsanitary conditions arising from sanitation SOP inspection activities and pathogen and prevalence of Salmonella on hog failures, or the need to verify corrective actions prevalence, about the actual change in carcasses, and estimating the taken under the establishment’s HACCP plan. future inspection activities that would

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likely be observed, and about the inspectors would inspect all animals International des Epizooties or OIE). representativeness of the rates of human found by the establishment to be normal The list of notifiable diseases includes Salmonella illnesses attributable to pork at rest, and five to ten percent of those anthrax, cysticercosis, scabies, bovine products. animals in motion. If any animals tuberculosis, myiasis (screwworm), and exhibit signs of condemnable vesicular diseases. Of these diseases, III. Proposed NSIS conditions, FSIS inspectors would anthrax, cysticercosis, and bovine FSIS is proposing to create a new direct establishment employees to move tuberculosis are transmissible to swine slaughter inspection system, the the animals to the ‘‘U.S. Suspect’’ pens humans. The complete list is available NSIS, informed by the Agency’s for final disposition by the FSIS PHV. on OIE’s website at http://www.oie.int/ experiences under HIMP and NPIS. All The FSIS PHV would inspect all en/animal-health-in-the-world/oie- establishments that slaughter market animals in the ‘‘Subject’’ and ‘‘U.S. listed-diseases-2016/. FSIS would report hogs would be permitted to operate Suspect’’ pens and render a final any animal disease issues to the USDA under the proposed NSIS. disposition decision. FSIS inspectors Animal and Plant Health Inspection Establishments that slaughter classes of would observe establishment employees Service (APHIS). swine other than market hogs would be performing sorting procedures at least Under the proposed NSIS, FSIS permitted to operate under NSIS under twice per shift. During this time, FSIS would maintain its zero tolerance for a waiver through the SIP. FSIS would inspectors would verify that animals market hogs exhibiting signs of consider the data collected in swine that are intended to be disposed of are moribundity, CNS conditions, and slaughter establishments operating humanely euthanized and that animals pyrexia. Market hogs exhibiting signs of under a SIP waiver to determine that are intended to be diverted to these generalized diseases or conditions, whether to expand NSIS to other classes another official establishment are if not sorted and removed by the of swine. Establishments that slaughter eligible for transport. FSIS inspectors establishment before ante-mortem market hogs and other classes of swine, also would conduct HACCP verification inspection, would be condemned by and that do not want to slaughter other tasks in PHIS at least twice per shift to FSIS PHVs, as under the existing classes of swine under NSIS under a verify that establishments meet the regulations (9 CFR 309.3). FSIS PHVs waiver through the SIP, would be regulatory requirements found in 9 CFR would issue an NR for every animal permitted to slaughter market hogs 417 for implementation, monitoring, exhibiting signs of moribundity, CNS under NSIS and to slaughter the other recordkeeping, prerequisite programs conditions, or pyrexia found by the FSIS classes of swine under traditional (when applicable), and corrective inspector after the establishment sorting inspection. FSIS would staff such actions. Under the proposed rule, if any step is completed. establishments to NSIS and would not market hogs become non-ambulatory Additionally, under the proposed add additional staff for traditional NSIS, FSIS would maintain its zero disabled after ante-mortem inspection, inspection; therefore, establishments tolerance for violative levels of chemical establishments would be required to would need to operate traditional residues. Establishments would be move them to the ‘‘Subject’’ pens for re- inspection under slower line speeds required to address chemical hazards inspection by FSIS PHVs. All sorting than they are currently operating to through their HACCP program including would be a function of the accommodate for the reduced number of preventing animals with violative levels establishment’s HACCP plan or pre- inspectors. FSIS seeks comment on the of chemical residues from being requisite program. Because impact of staffing at establishments that presented for slaughter. FSIS inspectors establishments operating under the slaughter market hogs and other classes would continue to select animals at proposed NSIS would be required to of swine and how it will impact their post-mortem and perform chemical decision to participate in NSIS. sort and remove market hogs that are residue sample collection and testing unfit for slaughter before FSIS ante- procedures in accordance with FSIS A. Live Market Hog Sorting by mortem inspection, FSIS is proposing Directive 10,800.1, Residue Sampling, Establishment Personnel that establishments under the proposed Testing and Other Verification Under the proposed NSIS, NSIS address, as part of their HACCP Procedures under the National Residue establishment personnel would be system, procedures for sorting animals Program for Meat and Poultry Products required to sort market hogs and remove showing signs of diseases or (available on FSIS’s website at http:// for disposal animals unfit for slaughter abnormalities from healthy animals. www.fsis.usda.gov/wps/wcm/connect/ before they are presented to FSIS PHVs These procedures must cover 147066f0-564c-4590-b36f-97ffc5ab9797/ for inspection and final disposition. establishment sorting activities for dead 10800.1.pdf?MOD=AJPERES). Establishment personnel would sort and moribund swine and swine Under the proposed NSIS, animals that appear to be healthy into suspected of having CNS conditions or establishment personnel would be ‘‘Normal’’ pens and animals that appear pyrexia. required to identify carcasses of market to have diseases or abnormal conditions FSIS also is proposing to require that hogs sorted and removed by into ‘‘Subject’’ pens. Establishment establishments immediately notify FSIS establishment employees before FSIS personnel may also sort and remove inspectors in the rare circumstance that inspection and intended for disposal animals with localized conditions (e.g., they suspect animals of having and destruction with a unique tag, animals with arthritis or abscesses) or notifiable or foreign animal diseases tattoo, or similar device. Establishment animals that do not meet establishment during sorting activities. For example, personnel also would be required to specifications (e.g., hogs that are the establishments may suspect that market immediately denature all carcasses and wrong size or underweight) to be hogs have notifiable or foreign animal parts removed as unacceptable by plant diverted to another official diseases if they observe animals with sorters on-site, even if establishments establishment for slaughter. abnormal lesions or behavior, or an have tanking facilities, to ensure that the Establishment personnel would remove abnormal change in the amount of carcasses and parts are properly and properly dispose of dead and animals that arrive to the establishment disposed of and never enter commerce. moribund animals and animals dead. Notifiable diseases are those that Under the proposed NSIS, suspected of having CNS conditions or are designated by the World Animal establishment personnel would be pyrexia. Under the proposed NSIS, FSIS Health Organization (Office required to maintain records to

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document the number of animals and APHIS recognize that ‘‘presumptive establishment sorting activities for these carcasses and parts sorted and removed diagnoses’’ by establishment personnel conditions. by establishment personnel per day. under the NSIS may not be as accurate Under this proposal, FSIS would These records and procedures would be as condemnation information entered by maintain its zero tolerance for carcasses subject to daily review by FSIS an FSIS PHV under traditional and parts contaminated by fecal inspectors. Under NSIS, FSIS inspectors inspection. However, FSIS and APHIS material, ingesta, or milk, or affected by would document in PHIS the total believe that the self-reported septicemia, toxemia, pyemia, or number of animals that the information may still be useful and cysticercosis. If FSIS online inspectors establishment employees have sorted significant in monitoring disease discover a carcass contaminated by fecal and removed per day. Under the conditions in the United States. material, ingesta, or milk, they would stop the line for carcass reexamination proposed rule, FSIS would still direct B. Post-Mortem Carcass Sorting by the application and removal of ‘‘U.S. and trimming by the establishment Establishment Employees and Online unless the establishment elected to Condemned’’ tags to animals Carcass Inspection condemned during ante-mortem provide a rail-out loop to rail inspection. FSIS would also continue to Under the proposed NSIS, contaminated carcasses offline for enter each and every ‘‘U.S. Condemned’’ establishment personnel would be reexamination, trimming, and tag into PHIS. However, FSIS inspectors required to sort carcasses and parts and positioning back on the line for should be able to complete these tasks trim dressing defects and contamination reinspection, consistent with the faster because they would be presented (e.g., hair, bruises, feces, ingesta, and existing regulations (9 CFR 310.17 and animals that have been sorted by milk) before the carcasses and parts are 310.18) and FSIS Directive 6420.2, establishment employees and are thus presented to an FSIS online inspector Verification of Procedures for more likely to pass ante-mortem for post-mortem inspection. Controlling Fecal Material, Ingesta, and inspection and not have condemnable Establishment personnel also would be Milk in Slaughter Operations (available conditions. required to mark with ink, or otherwise on FSIS’s website at http://www.fsis. identify, localized pathological defects usda.gov/wps/wcm/connect/478aca76- In addition to the total number of intended for removal under FSIS 37c5-4dc3-9925-1556402d8daf/PHIS_ animals sorted and removed by supervision (e.g. localized nephritis and 6420.2.pdf?MOD=AJPERES). An NR establishment personnel per day before localized arthritis) and carcasses and would be issued by the FSIS offline FSIS ante-mortem and post-mortem parts intended for disposal under FSIS inspector at or after the final rail for inspection, FSIS is requesting comments supervision (e.g., carcasses and parts every carcass contaminated by fecal on whether or not the Agency should with malignant lymphoma). Under the material, ingesta, or milk. FSIS online require establishments under NSIS to proposed NSIS, the head, and viscera of inspectors would also stop the line if specify in their records the reason that each hog must be handled in a way as they discover carcasses exhibiting the animals were removed from to identify them with the rest of the septicemia, toxemia, pyemia, or slaughter, including animals sorted and carcass and as being derived from the cysticercosis, as under the existing removed because they were dead on particular animal involved, until FSIS’s regulations (9 CFR 311.16 and 311.17). arrival or suspected of having CNS post-mortem inspection of the carcass The carcasses would be retained for conditions, pneumonia, pyrexia, and parts thereof have been complete. FSIS PHV disposition. An NR would be septicemia, erysipelas, or tuberculosis FSIS would not complete an inspection issued by the PHV for every carcass (e.g., 20 sorted and removed; 10 of the carcass if the head or viscera were affected by septicemia, toxemia, pyemia, pneumonia, 10 dead on arrival) and missing before the final rail, unless the or cysticercosis that reaches the online how this information should be head or viscera were properly disposed carcass inspection station. Moreover, collected. Under traditional inspection, of under FSIS supervision. Consistent because establishments would be FSIS inspectors record similar with traditional inspection, only FSIS required to address these food safety condemnation information into PHIS for inspectors would be authorized to hazards in their HACCP systems, the APHIS’ swine slaughter condemnation condemn carcasses and parts. Agency continuously would assess the monitoring system; however, this Carcasses and parts contaminated effectiveness of an establishment’s information is not being collected under with fecal material, ingesta, or milk or procedures for ensuring that carcasses HIMP. APHIS Veterinary Services (VS) that exhibit signs of septicemia, are prevented from becoming uses this type of data to monitor toxemia, pyemia, or cysticercosis during contaminated with fecal material, changes in the rate or count of swine post-mortem examination are likely to ingesta, or milk, and that carcasses condemnations by swine type (market, contain infectious agents, such as affected by septicemia, toxemia, pyemia, roaster, sow, and boar) and by selected bacteria, virus, richettsia, fungus, or cysticercosis do not reach the final condemnation categories (e.g., central protozoa, or helminth organisms, which FSIS inspection station. nervous system disorders, dead on can be transmitted to humans. For this FSIS is not proposing to prescribe arrival, pneumonia, pyrexia, septicemia, reason, they present a food safety risk if specific sorter training or certification to erysipelas, and tuberculosis). APHIS they are permitted to enter the cooler. give establishments operating under the conducts weekly monitoring to compare Therefore, FSIS is proposing that NSIS the flexibility to select the training baseline (expected) condemnation establishments under the new system program that would best assist them to counts by condemnation category to address, as part of their HACCP systems, meet the requirements of this proposed current weekly counts to identify procedures for ensuring that carcasses rule. However, the Agency has noteworthy increases (signals) in and parts contaminated with fecal developed a draft guidance document to condemnations in near-real time. APHIS material, ingesta, or milk or affected by assist establishments in training their produces a weekly report, and shares it septicemia, toxemia, pyemia, or sorters should this rule become final. with the National Pork Board to identify cysticercosis are trimmed or identified The draft guidance is based on the any noteworthy increases in by the establishment before they are training that FSIS provides to online condemnations which could indicate presented to the FSIS carcass inspector inspection personnel that are the emergence of disease and may and disposed of under FSIS supervision. responsible for identifying these non- warrant further investigation. FSIS and These procedures must cover food safety defects on carcasses and

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parts under traditional inspection. FSIS Under NSIS, as under HIMP, reviewed Denmark’s and the has posted this draft compliance guide establishment sorters would be required Netherlands’ market hog slaughter on its web page (http://www.fsis.usda. to incise mandibular lymph nodes and inspection systems and found them to gov/wps/portal/fsis/topics/regulatory- palpate the viscera to detect the be equivalent to the United States’ compliance/compliance-guides-index) presence of animal diseases (e.g., market hog slaughter inspection system. and is requesting comments on the Mycobacterium Avium) as part of their FSIS determined that visual post- guidance. sorting activities before FSIS post- mortem inspection will still allow FSIS believes that training of sorters mortem inspection. FSIS is requesting veterinary inspectors to palpate and is important to ensure that they are able comments on whether or not the Agency incise lymph nodes and organs (as to properly perform their duties. Proper should allow establishments that occurs in traditional inspection) at their training is necessary if sorters are to operate under the proposed NSIS to use discretion. Each herd of hogs that make accurate decisions on how to discretion when deciding, on a lot-by- arrives at establishments to be address animal disease conditions and lot basis, whether or not to incise slaughtered is accompanied by trim and dressing defects. Under the mandibular lymph nodes and palpate historical ‘‘Supply-Chain Information,’’ proposed NSIS, if sorters do not make the viscera to detect the presence of which consists of paperwork that these decisions correctly, FSIS animal diseases (e.g., M. Avium) if they documents the health status and history inspection personnel would take submit documentation to FSIS of each herd, complete traceback appropriate action such as stopping the supporting that the presence of M. information, as well as details about the line, issuing NRs, and directing the Avium is not likely to occur, such as originating farm (e.g., history of disease, establishment to reduce the line speed. records documenting their on-farm use of medications, and on-farm FSIS would thereby ensure that the controls. In the last 10–15 years, practices that contribute to maintenance establishment is able to maintain industry led initiatives like the Pork of the herd’s health.) FSIS concluded process control as evidenced by Quality Assurance Plus certification that this documentation, as well as any preventing fecal contamination and program (http://www.pork.org/pqa-plus- ante-mortem inspection observances, meeting microbial performance certification) and the Common Industry will be sufficient to inform the measures, that the establishment sorters Audit (http://www.pork.org/common- veterinary inspector’s decision whether are able to successfully perform their industry-audit) have improved or not to perform visual inspection or duties, and that the FSIS online biosecurity practices which not only traditional inspection. Importantly, inspectors are able to conduct a proper reduce disease spread but also address because lymphatic tissue may be food safety inspection. risk factors for M. Avium such as contaminated with pathogens, not Establishments that operate under the exposure to birds.89 Because on-farm incising the lymphatic tissue may proposed NSIS would have greater practices have improved, the prevalence reduce contamination of food contact flexibility over their production process. of M. Avium in U.S. swine is very low. surfaces and other carcasses. For example, establishments operating After reviewing PHIS condemnation FSIS also is proposing to require under the proposed NSIS would have data from 21 large market hog establishment personnel to maintain the flexibility to reconfigure lines if they establishments from 2012 through 2015, records to document the number of decided to change the way that the FSIS found that only 0.9 percent of all carcasses and parts disposed of by head, viscera, and carcasses are condemnations are due to M. Avium. establishment personnel per day as part presented to FSIS inspectors to improve of their sorting activities. The records The animal disease M. Avium does not ergonomics and process control and to would not need to include the number present a food safety concern, and can maintain optimum line speed. FSIS of carcasses condemned by FSIS. These be detected visually by inspectors. would still inspect the head, viscera, records would be subject to review by Moreover, Denmark and the and carcass of each animal. However, FSIS inspectors. Under NSIS, FSIS Netherlands already conduct alternative under the proposed NSIS, inspectors would document in PHIS the post-mortem visual inspections and establishments may reconfigure their total number of carcasses and parts allow establishments to use discretion lines so that they present a ready-to- sorted and disposed of by plant when determining, on a lot-by-lot basis, inspect head, viscera, and carcass for employees per day. FSIS inspectors whether or not to incise lymph nodes FSIS post-mortem inspection in one would continue to enter dispositions for and palpate the viscera. Under the location or separately in two or three each and every carcass condemned by FMIA and the regulations that locations. FSIS would assign one to FSIS into PHIS. three inspectors to conduct online implement it, meat and meat products inspection activities, depending on need imported into the United States must be C. Offline Verification Inspection and line configuration. These inspectors produced under standards for safety, In addition to the online inspectors would also rotate to conduct offline wholesomeness, and labeling accuracy performing carcass inspection, FSIS is inspection activities. FSIS would assign that are equivalent to those of the proposing that up to two inspectors be one online inspector only if the Agency United States (21 U.S.C. 620). FSIS has assigned for each evisceration line per had the data and experience (including shift to conduct offline verification 8 processes and procedures) to ensure that United States Department of Agriculture, activities in establishments operating Animal and Plant Health Inspection Service. (2008). one inspector is able to conduct all National Animal Health Monitoring System Swine under the proposed NSIS. Inspectors online post-mortem inspection 2006, Part IV: Changes in the U.S. Pork Industry, conducting offline inspection activities activities. Under the proposed NSIS, all 1990–2006. Retrieved from https:// would rotate with the inspectors _ establishments with fewer than three www.aphis.usda.gov/animal health/nahms/swine/ conducting online inspection activities. downloads/swine2006/Swine2006_dr_PartIV.pdf. inspection stations would be required to 9 United States Department of Agriculture, FSIS is also proposing to assign one provide a mirror at the carcass Animal and Plant Health Inspection Service. (2015). PHV to make carcass and parts inspection station in accordance with 9 National Animal Health Monitoring System Swine dispositions. CFR 307.2 (m)(6) so that the inspector 2012, Part 1: Baseline Reference of Swine Health As in HIMP, offline inspectors under and Management in the United States, 2012. standing at the inspection station can Retrieved from https://www.aphis.usda.gov/ the new inspection system would readily view the back of the carcass for animal_health/nahms/swine/downloads/ conduct food safety related inspection evidence that could impact food safety. swine2012/Swine2012_dr_PartI.pdf. activities and would continuously

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monitor and evaluate establishment are best suited to their operations. They conformances using a statistical process process control. Offline inspectors would also be responsible for control program. would conduct inspection activities determining the type of records that will • The corrective actions that the including HACCP, sanitation SOP, and best document that they are meeting the establishment would take if the levels of other prerequisite program verification RTC pork product definition. The defects and non-conformances exceed procedures; verification checks for records would be subject to review and its evaluation criteria for RTC pork. septicemia, toxemia, pyemia, evaluation by FSIS inspectors. Under this proposed rule, pork cysticercosis, fecal material, ingesta, or For their record reviews, FSIS carcasses that meet the OCP milk contamination; checks to verify inspectors would verify that performance standards under HIMP and ensure that sanitary dressing establishments operating under the would be considered ‘‘suitable for requirements are being met; and ante- proposed NSIS have written criteria for cooking without the need for further mortem inspection. Under this proposed determining whether carcasses meet the processing,’’ and as such, meet the RTC rule, offline inspectors would also RTC definition and that they are pork product definition. Therefore, conduct more humane handling documenting that the pork products establishments operating under the verification tasks than are conducted resulting from their slaughter operations NSIS that adopt the OCP HIMP under traditional inspection. The offline meet these criteria before packaging or performance standards as their criteria verification inspectors would work with further processing that would conceal a for determining whether they are the Inspector-In-Charge (IIC) to ensure defect. Records that would meet the producing RTC pork product would that food safety related or non-food- proposed requirements include: meet the regulatory requirements if: (1) safety related conditions do not impair • The records system that the They can document that the products the online carcass inspectors’ ability to establishment uses to document that it resulting from their slaughter operations conduct the inspection of each head, is producing RTC pork. For example, an consistently meet these standards, and viscera, and carcass or would notify the establishment may use statistical (2) FSIS inspectors do not observe IIC whenever circumstances indicate a process control charts, HACCP records, persistent, unattended defects on the loss of process control. When or other documentation. products resulting from the circumstances indicate a loss of process • The points in the operation where establishment’s slaughter operations. control, the IIC will be authorized to the establishment monitors carcasses to Establishments that adopt criteria other require that the establishment slow the determine whether they meet the RTC than the HIMP OCP standards would be evisceration line speed. definition and records the results of its required to have documentation to monitoring activities. For example, an demonstrate how they will use these D. RTC Pork Product establishment may conduct monitoring criteria to demonstrate that the products As discussed above, under HIMP, and record the results at a pre- resulting from their slaughter operations OCP standards are non-food safety evisceration and a post-chill station. meet the RTC pork product definition. standards concerned primarily with • The frequency with which the In addition to record reviews, FSIS diseases of no public health significance establishment conducts monitoring inspectors would verify that and carcass processing defects. Data activities. The records should specify establishments operating under the collected from market hog how often the establishment monitors NSIS are producing RTC pork product establishments operating under HIMP carcasses per line per shift. For by visually observing carcasses as part show that from CY 2012 through 2013, example, an establishment may conduct of their inspection activities. The HIMP establishments maintained OCP and document its monitoring activities presence of persistent, unattended trim defect levels that average about half the at least every two hours per line per and dressing defects on carcasses at the corresponding OCP performance shift at the pre-evisceration location and end of the process would indicate that standards derived from the performance at least twice per shift per line for post- the establishment is not producing RTC of non-HIMP establishments. Thus, the chill location. pork product. It may also indicate a data show that establishments operating • The definitions of the OCP non- general lack of control in an under the HIMP system do conformances or processing and trim establishment’s overall slaughter and exceptionally well in controlling OCP defects for which the establishment is dressing process. Thus, if inspectors defects. monitoring. For example, the observe persistent, unattended defects, Accordingly, FSIS is not proposing establishment may be monitoring FSIS would require that the OCP requirements as a condition for carcasses for processing and trim non- establishment take appropriate actions establishments to participate in the conformances as specified for trim and to ensure that its process is under proposed NSIS. Under this proposal, processing OCP defects specified under control and that it is operating under establishments operating under NSIS the HIMP OCP performance standards, conditions necessary to produce safe, would be allowed to implement the or defects as defined in a published wholesome, and unadulterated RTC process controls that they have study or a study that the establishment products. If inspection personnel determined will best allow them to conducted itself. If the establishment through their record review or direct produce an RTC pork product that is references a study, it should give a brief observation of carcasses find evidence wholesome and not adulterated. The description of the study and have the that an establishment is producing pork new proposed definition of RTC pork supporting information on file. that does not meet the RTC definition, product is any slaughtered pork product • The criteria that the establishment the IIC would be authorized to take free from bile, hair, scurf, dirt, hooves, would use to determine that the appropriate action to ensure that the toe nails, claws, bruises, edema, scabs, products resulting from its slaughter establishment remedies the defects, skin lesions, icterus, foreign material, operation meet the RTC definition. For including requiring that the and odor which is suitable for cooking example, an establishment may follow establishment slow the evisceration line without need of further processing. the subgroup limits for non- speed. Under the proposed NSIS, conformances and defects in the trim establishments would have the and processing defect levels for the E. Line Speeds Under NSIS flexibility to design and implement HIMP OCP performance standards, or it Based on FSIS’s experience under measures to address OCP defects that may determine the upper limits for non- HIMP, the Agency is proposing to allow

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establishments operating under NSIS to The survey captures data from program to monitor and document any determine their own evisceration line Occupational Safety and Health work-related conditions that arise speeds if Agency personnel verify that Administration (OSHA) logs of among establishment workers. The process control is maintained. The workplace injuries and illnesses elements of this program would include: maximum line speed under the existing maintained by employers. Fifty-six FSIS (1) Policies to encourage early regulations for market hogs is 1,106 inspected market hog slaughter reporting of symptoms of work-related head per hour (hph) with seven online establishments voluntarily submitted injuries and illnesses, and assurance inspectors. Experience from the HIMP injury rate data to OSHA (approximately that the establishment has no policies or pilot shows that HIMP establishments nine percent of all market hog slaughter programs intended to discourage the operate with an estimated average line establishments). From these 56 reporting of injuries and illnesses. speed of 1,099 hph, and that the line establishments, 27 low volume (2) Notification to employees of the speeds varied from 885 hph to 1,295 establishments were excluded, leaving nature and early symptoms of hph (under waiver). Thus, although they 29 plants (5 HIMP and 24 Traditional). occupational illnesses and injuries, in a are authorized to do so, market hog The low volume plants were excluded manner and language that workers can HIMP establishments do not operate at to provide a better comparison group of understand, including by posting in a line speeds that are significantly faster traditional plants because all HIMP conspicuous place or places where than the current maximum line speeds plants are high volume plants. The notices to employees are customarily for market hogs. Establishments results showed HIMP plants had a lower posted, a copy of the FSIS/OSHA poster determine their line speeds based on mean number of injuries using three encouraging reporting and describing their equipment, animal size and herd OSHA injury rate measures: Total Case reportable signs and symptoms. condition, and their ability to maintain Rate (TCR), Days Away Transferred (3) Monitoring on a regular and process control when operating at a Restricted (DART), and Days Away routine basis of injury and illness logs, given line speed. In addition, line From Work (DAFW). However, FSIS as well as nurse or medical office logs, speeds under HIMP depend on the realizes that factors other than line workers’ compensation data, and any number of employees the speed may affect injury rates (e.g., other injury or illness information establishments hire and train to perform automation and number of sorters per available. sorting activities. If FSIS finalizes the line). FSIS is also proposing to create a new proposed NSIS, establishments choosing FSIS is requesting comments on the severability clause (proposed 9 CFR to operate under the NSIS will likely effects of faster line speeds on worker 310.28), which would state that should determine their line speeds based on the safety. Specifically, FSIS is requesting a court of competent jurisdiction hold same factors that establishments comments on whether line speeds for any provision of the proposed worker considered when setting line speeds the NSIS should be set at the current safety attestation requirement (proposed under HIMP for the past 16 years. regulatory limit of 1,106 hph or some 9 CFR 310.27) to be invalid, such action Establishments operating under HIMP other number. The Agency is also would not affect any other provision of have demonstrated that they are capable interested in comments on the 9 CFR parts 309 and 310. of consistently producing safe, availability of records or studies that As OSHA is the Federal agency with wholesome, and unadulterated pork contain data that OSHA or the National statutory and regulatory authority to products while operating at these line Institute for Occupational Safety and promote workplace safety and health, speeds. Moreover, they have Health (NIOSH) may be able to use in FSIS would forward the annual consistently met pathogen reduction analyzing the effects of increased line attestations to OSHA for further review. and other performance standards when speed on the safety and health of OSHA, in turn, may use the information operating at the line speeds they employees throughout the in the attestations in its own established under HIMP. The proposed establishment, including effects prior to enforcement program. FSIS employees new inspection system was informed by and following the evisceration line. would not be responsible for the Agency’s experience under HIMP FSIS is also requesting comments on determining the merit of the content of and, as discussed later in this whether the Agency should maintain each establishment’s monitoring document, also incorporates additional the 1,106 hph maximum line speed for program or enforcement of measures that will apply to all swine establishments operating under NSIS noncompliance with this section. FSIS slaughter establishments. These but grant waivers from the maximum would work with OSHA to develop the measures, which include testing for line speed to establishments that agree poster that establishments must display microbial organisms at pre-evisceration to work with the National Institute for providing information on the signs and and post-chill, are designed to ensure Occupational Safety and Health NIOSH symptoms of occupational injuries and that establishments maintain process to evaluate the effects of waivers of line illnesses experienced by market hog control. speed restrictions on employee health. slaughter workers, and about workers’ FSIS recognizes that evaluation of the FSIS is requesting comments on best rights to report these conditions without effects of line speed on food safety practices and other measures that fear of retaliation. should include the effects of line speed establishments can take to protect on establishment employee safety. FSIS workers throughout the plant, including IV. Other Proposed Changes That Affect compared in-establishment injury rates possible protective factors such as All Swine Slaughter Establishments between HIMP and traditional increasing the size of the workforce, A. Procedures To Address Enteric establishments from 2002 to 2010. The rotating assignments, increased Pathogens, Fecal Material, Ingesta, and preliminary analysis shows that HIMP automation, or improved tools and Milk Contamination as Hazards establishments had lower mean injury techniques. rates than non-HIMP establishments. FSIS is proposing to require each Reasonably Likely to Occur The analysis uses injury rate data by establishment that operates under the In 1997, FSIS published a Federal occupational injury estimates that are NSIS to provide an annual attestation to Register document entitled ‘‘Notice on derived from the BLS annual Survey of the management member of the local complying with food safety standards Occupational Injuries and Illnesses FSIS circuit safety committee stating under the HACCP system regulations’’ (SOII) http://www.bls.gov/iif/data.htm). that the establishment maintains a (62 FR 63254, November 28, 1997). The

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purpose of the document was to ensure mortem inspection of swine carcasses. dressing operation. FSIS is proposing that establishments understood the Such a requirement would ensure that that establishments incorporate these Agency’s zero tolerance policy for establishments maintain the records to procedures into their HACCP systems visible fecal material as food safety verify that they have implemented the and that they maintain records hazards, as establishments prepared to necessary measures and, when sufficient to document the comply with the then newly enacted necessary, have taken appropriate implementation and monitoring of these HACCP system regulations. The corrective actions to prevent carcasses procedures. These proposed document explained that under 9 CFR contaminated with visible fecal requirements are necessary to fully 310.18, establishments must handle material, ingesta, or milk at or after the implement the existing HACCP livestock carcasses and carcass parts to final rail. regulations. prevent contamination with fecal Although the existing requirements Information that FSIS has collected material and promptly remove for establishments to prevent visible from investigations it has conducted in contamination if it occurs. Based on this fecal material, ingesta, or milk at or after establishments that have received a regulation, FSIS enforces a zero the final rail, and the proposed Notice of Intended Enforcement due to tolerance policy for visible fecal requirement described above that Salmonella serotypes linked to human contamination. Then, the document establishments must have procedures illness demonstrate the need for explained that ‘‘to meet the zero addressing how they do so, are establishments to adopt preventive tolerance standard, an establishment’s important safeguards, those safeguards measures to control contamination [HACCP] controls must (among other would not be fully effective if an throughout the entire production things) include limits that ensure that appropriate effort is not made to prevent process, as well as the need to maintain no visible fecal material is present by contamination from occurring documentation to verify the the point of post-mortem inspection of throughout the slaughter and dressing effectiveness of those measures on an livestock carcasses’’ (citing 9 CFR operation. Fecal material is a major ongoing basis. 417.2(c)). Finally, the document vehicle for spreading pathogenic For example, FSIS conducted an explained that ‘‘Under the HACCP microorganisms, such as Salmonella, to investigation at a swine slaughter system regulations, critical control raw pork products, and therefore, it is establishment that resulted in a Notice points to eliminate contamination with vital for establishments to maintain of Intended Enforcement after a State visible fecal material are predictable and sanitary conditions and to prevent, to department of health conducted essential components of all slaughter the maximum extent possible, sampling and found the presence of establishments’ HACCP plans.’’ As a contamination from occurring before Salmonella serotypes linked to human result, all swine slaughter slaughter and throughout the slaughter illness, and after FSIS requested a establishments’ HACCP plans currently and dressing process. voluntary recall in 2015. FSIS reviewed include critical control points (CCPs) for Under HACCP, establishments are the establishment’s controls, and preventing carcasses contaminated with responsible for identifying food safety records associated with the visible fecal material at or after the final hazards that are reasonably likely to establishment’s sanitary dressing rail. occur in the production process and for procedures and microbial interventions, FSIS also enforces a zero tolerance implementing preventive measures to and observed the establishment’s policy for contamination by ingesta and control those hazards. Failure to implementation of these controls and milk because the microbial pathogens implement preventive measures procedures. The Agency’s review found associated with ingesta and milk throughout the slaughter and dressing that the establishment had contamination are likely sources of process can lead to the creation of contamination of Salmonella potential food safety hazards in insanitary conditions in the throughout the slaughter process, slaughter establishments. As mentioned establishment and increases the including carcasses, environmental above, the regulations require potential for carcasses and parts to samples and pre-operational swabs. The establishments to handle livestock become contaminated with enteric cross contamination and failure to carcasses and carcass parts to prevent pathogens, fecal material, ingesta, and maintain sanitary procedures appeared contamination and promptly remove milk. Interventions with chemical to have overwhelmed any subsequent contamination if it occurs (9 CFR antimicrobials applied at the end of the in-process interventions. FSIS 310.18) The regulations also require that process are less likely to be fully determined that the establishment’s lactating mammary glands and diseased effective on carcasses that contain high HACCP system was inadequate due to mammary glands of swine be removed levels of pathogens, and these chemical multiple or recurring noncompliance without opening the milk ducts or treatments are not effective in (see 9 CFR 500.4(a)). If this rule becomes sinuses because if pus or other preventing insanitary conditions final, establishments may choose to objectionable material is permitted to throughout the slaughter establishment. incorporate measures to address the come in contact with the carcass, the To ensure that establishments prevention of contamination by enteric parts of the carcass are contaminated implement appropriate measures to pathogens and contaminants (e.g., fecal, and must be removed and condemned prevent carcasses from becoming ingesta, and milk) into their procedures (9 CFR 310.17). Because such contaminated with pathogens, and to addressing how they prevent contamination is largely preventable, ensure that both FSIS and contamination from occurring during most slaughter establishments already establishments have the documentation slaughter and dressing operations. have in place procedures designed to they need to verify the effectiveness of Examples of such measures include: prevent and remove ingesta and milk. these measures on an on-going basis, Sanitary dressing protocols, statistical FSIS is now proposing to amend 9 FSIS is proposing to require that all process control programs, and sampling. CFR 310.18 to require swine slaughter swine slaughter establishments develop, Under this proposed rule, establishments to develop, implement, implement, and maintain written establishments will be required to and maintain as part of their HACCP procedures to prevent contamination of incorporate these procedures into systems, written procedures to ensure carcasses and parts by enteric HACCP systems, and to maintain on- that no visible fecal material, ingesta, or pathogens, fecal material, ingesta, and going documentation to demonstrate milk is present by the point of post- milk throughout the entire slaughter and that the procedures are effective. FSIS is

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not proposing to prescribe the specific establishment is minimizing week of operation each year. FSIS is procedures that establishments must contamination during chilling as well as proposing to allow very small and very follow to prevent carcasses from the overall effectiveness of all process low volume establishments to collect becoming contaminated by enteric control interventions the establishment and analyze samples for microbial pathogens, fecal material, ingesta, or has chosen to apply throughout its organisms at the post-chill point in the milk because the Agency believes that production process. Because most process only because these establishments should have the establishments apply one or more establishments typically are less flexibility to implement the most interventions between the pre- automated and run at slower line speeds appropriate measures that will best evisceration and post-chill sampling than larger establishments. The lower achieve the requirements of this points to help control microbiological level of automation and the slower line proposed rule. However, on-going hazards, FSIS would expect that a speeds require less complicated verification and documentation to reduction in microbiological measures for maintaining and demonstrate that an establishment’s contamination between these two monitoring process control on an process controls are effective in sampling points to be an indication of ongoing basis. If, after consecutively preventing food safety hazards are the effectiveness of those controls. The collecting 13 weekly samples, very critical components of the food safety establishment would be responsible for small and very low volume system. FSIS believes that determining which microbiological establishments can demonstrate that microbiological test results that organisms would best help it to monitor they are effectively maintaining process represent levels of microbial the effectiveness of its process control control, they can modify their sampling contamination at key steps in the procedures. plans to collect samples less frequently. slaughter process are necessary for Because FSIS is proposing that These proposed frequencies reflect the establishments to provide establishments’ microbiological frequencies prescribed under the comprehensive, objective evidence to sampling plans be part of their HACCP existing regulations for generic E. coli demonstrate that they are effectively systems, all swine slaughter testing. In light of these changes, FSIS preventing carcasses from becoming establishments would be required to is proposing to remove the current contaminated with pathogens before provide scientific or technical requirement that swine establishments and after they enter the cooler. documentation to support the test carcasses for generic E. coli to In light of these changes, FSIS is judgments made in designing their monitor process control. FSIS is also proposing to rescind the generic E. coli sampling plans (see 9 CFR 417.4(a)). proposing to eliminate the pathogen testing requirements in 9 CFR 310.25 Under this proposal, establishments performance standards for market hogs and to replace them with a new testing could develop sampling plans to test in 9 CFR 310.25(b) because, as requirement that would provide carcasses for enteric pathogens, such as explained above, the codified standards establishments the flexibility to sample Salmonella, at pre-evisceration and post are no longer in use. for other, potentially more useful chill, or they could test for an FSIS is proposing to allow indicator organisms. Under this appropriate indicator organism. FSIS establishments to substitute alternative proposal, establishments would has developed draft sampling guidance sampling locations if they are able to continue to conduct sampling and to assist small and very small demonstrate that the alternative analysis of carcasses for microbial establishments in developing sampling sampling locations provide a definite organisms at the post-chill location, but plans that meet the Agency’s improvement in monitoring process in addition the Agency is proposing a expectations for testing designs and control than at pre-evisceration and second testing location at the pre- sampling frequency should this rule post-chill. FSIS is also proposing to evisceration position in order to ensure become final. FSIS has posted this draft allow establishments to substitute establishments would be able to monitor compliance guide on its web page alternative sampling frequencies if they the effectiveness of process control for (http://www.fsis.usda.gov/wps/portal/ are able to demonstrate that the enteric pathogens throughout the fsis/topics/regulatory-compliance/ alternative is an integral part of the slaughter and dressing operation. compliance-guides-index) and is establishments’ verification procedures Under this proposed rule, instead of requesting comments on the guidance. for their HACCP plans. following a prescribed microbiological FSIS is proposing to prescribe a This proposed rule does not mandate testing program, each establishment minimum frequency with which that establishments meet specific would be responsible for developing establishments would be required to performance standards for microbial and implementing its own collect two samples, one at pre- testing. Because establishments would microbiological sampling plan, which evisceration and one at post-chill, or, for be required to incorporate their would be required to include carcass very small and very low volume procedures for preventing sampling at pre-evisceration and post- establishments, a single post-chill contamination by enteric pathogens and chill. FSIS considers the microbial load sample. Under the proposed rule, other contamination (e.g., fecal material, of hog carcasses at pre-evisceration to be establishments, except for very small ingesta, and milk) into their HACCP a valuable source of data about how and very low volume establishments 10, plans, or sanitation SOPs, or other well an establishment is taking into would be required to collect samples at prerequisite programs, establishments account the sanitary condition of live a frequency of once per 1,000 carcasses. would be required to take appropriate hogs coming to slaughter and the Very small and very low volume corrective action when either the processing steps (i.e., washing, establishments would be required to establishment or FSIS determines that dehairing) they implement to reduce the collect at least one sample during each the establishment’s procedures are not external contamination of the carcass effective in preventing carcass prior to evisceration. Following a 10 Very small establishments are establishments contamination throughout the entire similar logic, FSIS considers the with fewer than 10 employees or annual sales of slaughter and dressing process. microbial characteristics of hog less than $2.5 million. Very low volume Establishments would also need to establishments annually slaughter no more than carcasses post-chill (after all processing 20,000 swine, or a combination of swine and other routinely evaluate the effectiveness of steps have taken place) to be a valuable livestock not exceeding 6,000 cattle and 20,000 total their procedures in preventing carcass source of data about how well an of all livestock. contamination.

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Under this proposed rule, FSIS would environmental sampling requirement. slaughter and how this information verify the effectiveness of The proposed environmental sampling should be collected. establishments’ process control does not specifically include lairage 2. The draft compliance guides. procedures in preventing carcasses from (e.g., holding pens for live swine) 3. Whether or not the Agency should becoming contaminated with enteric although scientific literature allow establishments that operate under pathogens, fecal material, ingesta, and conclusively shows that contamination the proposed NSIS to use discretion milk by reviewing the establishments’ occurs in this area of the establishment. when deciding, on a lot-by-lot basis, monitoring records, including the FSIS is also asking for comments on whether or not to incise mandibular establishments’ microbial testing how to ensure that lairage does not lymph nodes and palpate the viscera to results, observing establishments contribute to insanitary conditions. detect the presence of animal diseases implementing their procedures, and (e.g., M. Avium) if they submit V. Implementation inspecting carcasses and parts for documentation to FSIS supporting that visible fecal, ingesta, and milk If this proposed rule becomes final, the presence of M. Avium is not likely contamination when conducting both establishments interested in NSIS to occur, such as records documenting online carcass inspection and offline would need to notify FSIS in writing of their on-farm controls. verification inspection procedures. their intent to operate under the new 4. The effects of faster line speeds on If inspection personnel determine that inspection system. The Agency is also worker safety. an establishment’s process control considering establishing separate a. Whether line speeds for the NSIS procedures are not effective in applicability dates for large, small, and should be set at the current regulatory preventing contamination by enteric very small establishments to comply limit of 1,106 hph or some other pathogens, fecal material, ingesta, and with the proposed regulations that number. milk, the Agency would take prescribe procedures for controlling b. The availability of records or appropriate regulatory action to ensure visible fecal, ingesta, and milk studies that contain data that FSIS may that the establishment’s production contamination; the regulations that be able to use in analyzing the effects of process is in control, and that product prescribe procedures for controlling increased line speed on the safety and is not being adulterated. Such action contamination throughout the slaughter health of employees throughout the could include performing additional and dressing process; and the establishment, including effects prior to visual inspections of products or regulations that prescribe recordkeeping and following the evisceration line. equipment and facilities, increasing requirements. The applicability dates c. Whether the Agency should offline verification inspections, would provide additional time for small maintain the 1,106 hph maximum line initiating Food Safety Assessments and very small establishments to speed for establishments operating (FSAs), conducting hazard analysis comply with these provisions. The under NSIS but grant waivers from the verification procedures, and retaining or Agency is requesting comments on its maximum line speed to establishments condemning product. proposed implementation plan, Finally, FSIS is proposing to require that agree to work with the National especially the phased in applicability that all official swine slaughter Institute for Occupational Safety and dates for the proposed provisions in the establishments develop, implement, and Health to evaluate the effects of waivers rule that prescribe requirements for all maintain in their HACCP systems of line speed restrictions on employee swine slaughter establishments. written procedures to prevent health. contamination of the pre-operational VI. Executive Orders 12866 and 13563 5. The proposed sampling environment by enteric pathogens. requirements, especially the These procedures must include Executive Orders 12866 and 13563 environmental sampling requirement. sampling and analysis of food-contact direct agencies to assess all costs and 6. The proposed implementation plan, surfaces, reuse water, and equipment, benefits of available regulatory especially the phased in applicability including knives, in edible food alternatives and, if regulation is dates for the proposed provisions in the production departments in the pre- necessary, to select regulatory rule that prescribe requirements for all operational environment for microbial approaches that maximize net benefits swine slaughter establishments. organisms to ensure that the surfaces are (including potential economic, In addition, FSIS is requesting the sanitary and free of enteric pathogens. environmental, public health and safety following data to further inform its The sampling frequency must be effects, distributive impacts, and consideration of the proposed rule. adequate to monitor the establishment’s equity). Executive Order 13563 Further discussions of these requests are ability to maintain sanitary conditions emphasizes the importance of provided in their corresponding in the pre-operational environment. quantifying both costs and benefits, of sections. FSIS is proposing this environmental reducing costs, of harmonizing rules, 1. Are very small establishments that sampling requirement because in 2015, and of promoting flexibility. This exclusively slaughter market hogs likely 152 people became ill after proposed rule has been designated a to convert to the NSIS? consumption of product produced at an ‘‘significant’’ regulatory action under 2. How soon do establishments plan establishment where FSIS found section 3(f) of Executive Order 12866. on adopting the NSIS? evidence during an investigation of Accordingly, the rule has been reviewed 3. Depending on establishment size, insanitary conditions, including, but not by the Office of Management and how many additional establishment limited to, tables and knives in the pre- Budget under Executive Order (E.O.) employees would the NSIS system operational environment that were 12866. require? contaminated with Salmonella. The A. Request for Comments Summary 4. What are the capital costs for proposed environmental sampling establishments associated with the requirement would reduce the risk of FSIS is requesting comments on: NSIS? cross-contamination from insanitary 1. Whether or not the Agency should 5. How long will it take establishment conditions in the pre-operational require establishments under NSIS to personnel such as a quality technician environment. FSIS is requesting specify in their records the reason that to collect, record, and analyze data comments on this proposed the animals were removed from required to verify that an

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establishment’s products meet the used by the FSIS. Many of today’s than market hogs, a modernized swine definition of RTC? producers have invested in farm to table slaughter inspection system, one that is 6. How many swine establishments quality and food safety controls that less prescriptive, creates incentives for have written sanitary dressing plans? effectively address health risks and establishments to develop and invest in 7. How many establishment consumer quality issues.11 For these food quality controls and safety employees perform sanitary dressing producers, the prescriptive nature of procedures, and allows FSIS to improve tasks in a swine slaughter some FSIS regulations inhibits efficient inspection methods, is needed. establishment? production, and the adoption of Baseline 8. How many establishments conduct improved production methods, and generic E. coli sampling at an alternative restricts their ability to adopt new C. Overview of the Market frequency? technologies. Further, adherence to 9. What are the alternative frequencies U.S. pork production has increased at at which establishments are conducting current regulations at large and high a moderate pace as seen in Table 2. process control sampling? volume establishments that exclusively Much of the additional growth in 10. How will changes in line speeds slaughter market hogs prevents FSIS domestic production has been used to affect market hog prices, establishment from efficiently allocating resources, satisfy increasing export demands, hours of production, consumer prices, which inhibits food safety which increased 88 percent between and export volumes? improvements and humane handling 2005 and 2015.12 According to the Food hazard prevention. Therefore, while and Agricultural Organization, pork is B. Need for the Rule traditional inspection is generally consistently ranked as the top meat in The swine slaughter industry in the sufficient for low volume per-capita consumption worldwide 13 U.S. has evolved since the advent of the establishments and for establishments and is ranked third in the United current swine inspection regulations that slaughter classes of swine other States.14

TABLE 2—U.S. PORK SUPPLY AND DEMAND

U.S. Domestic Per capita Year production * Imports * Exports * consumption * consumption **

2005 ...... 20,705 1,024 2,666 19,093 65 2006 ...... 21,074 990 2,995 19,055 64 2007 ...... 21,962 968 3,141 19,763 66 2008 ...... 23,367 832 4,651 19,431 64 2009 ...... 23,020 834 4,094 19,869 65 2010 ...... 22,456 859 4,223 19,077 62 2011 ...... 22,775 803 5,196 18,382 59 2012 ...... 23,268 802 5,379 18,607 59 2013 ...... 23,204 880 4,986 19,105 60 2014 ...... 22,858 1,011 5,092 18,836 59 2015 ...... 24,517 1,116 5,009 20,593 64 * Measured in carcass weight, million pounds. ** Measured in carcass weight, pounds. Source: USDA ERS Livestock and Meat Domestic Data. http://www.ers.usda.gov/data-products/livestock-meat-domestic-data.aspx#26105 accessed on 11/29/16. Last updated on 10/27/16.

In 2016, there were approximately roughly 118 million hogs annually. FSIS sow, and boar/stag. Today, the majority 612 swine slaughter establishments divides these swine into the following (96%) of the pork products available in under Federal Inspection, Table 3.15 production categories for data the market are derived from market Combined, these establishments process collection: Roaster swine, market hog, hogs.16

TABLE 3—NUMBER OF SWINE SLAUGHTER ESTABLISHMENTS BY SIZE, 2016

Total swine Total market HACCP processing size Number of slaughter hog slaughter Percent establishments (head count) (head count) market hog

Large ...... 28 105,678,519 105,321,950 99.66 Small ...... 105 11,862,341 8,497,891 71.64 Very Small * ...... 479 903,009 625,863 69.31

Total ...... 612 118,443,869 114,445,704 96.62 Source: Public Health Information System (PHIS) * Two establishments classified as N/A were included in the category total for Very Small establishments.

11 Key, Nigel and William McBride. 2007. The 13 FAO Livestock commodities. http:// 15 USDA, FSIS, Public Health Information System Changing Economics of U.S. Hog Production. USDA www.fao.org/docrep/005/y4252e/y4252e05b.htm. (PHIS). ERS. Report No. 52. Accessed on 11/29/16. 16 Source: PHIS. 12 USDA ERS Livestock and Meat Domestic Data. 14 USDA ERS Livestock and Meat Domestic Data. http://www.ers.usda.gov/data-products/livestock- http://www.ers.usda.gov/data-products/livestock- meat-domestic-data.aspx#26105. Accessed on 12/2/ meat-domestic-data.aspx#26105. Accessed on 11/ 15. Last updated on 11/30/15. 29/16. Last updated on 10/27/16.

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As shown below in Table 4, many establishment’s labor and training costs. ability to slaughter a sufficient amount establishments now exclusively Additionally, only market hogs are of market hogs to justify the likely costs slaughter market hog, a species sub class eligible to participate in the NSIS. Due associated with NSIS, these which due to technological and to these economic constraints discussed establishments are expected to managerial improvements, such as above, we expect that only large and voluntarily implement the proposed improved genetics, nutrition, and small high volume establishments that NSIS. Therefore, this analysis calculates medical services, generally presents exclusively slaughter market hogs the costs and benefits associated with fewer food safety and quality issues.17 would voluntarily participate in the the voluntary provisions for these 40 NSIS. In 2016 there were 40 high market hog establishments. However, D. Overview of the Proposed Rule’s volume establishments that exclusively because the 5 HIMP establishments are NSIS slaughter market hogs, 27 large 18 (5 already practicing the proposed NSIS Eight of the proposed rule’s HIMP + 22 non-HIMP) 19 and 13 small methods, they are not expected to incur provisions apply to only those establishments, Table 4. These establishments that voluntarily establishments account for 92 percent of any additional new costs nor contribute participate in the NSIS. Meeting these total swine slaughter, Table 4. Given to any increase in quantified benefits provisions will likely increase an their large share of the market and the associated with adopting the NSIS.

TABLE 4—HEAD COUNT DISTRIBUTION ACROSS TYPES OF ESTABLISHMENTS, 2016

Total swine Percent Type of establishment HACCP size Number of slaughter of total establishments (head count) head count

High Volume Market Hog Only ...... Large—HIMP ...... 5 17,517,254 14.79 Large—Non-HIMP ...... 22 87,746,770 74.08 Small ...... 13 4,617,680 3.90 Low Volume Market Hog Only ...... Very Small ...... 71 32,360 0.03 Mix of Species and Swine Sub Classes ...... Large/Small ...... 93 7,659,156 6.47 Very Small ...... 408 870,649 0.74

Grand Totals ...... 612 118,443,869 ...... * HACCP sizes were combined so as to not reveal proprietary information. Source: PHIS.

E. Overview of the Proposed Rule’s contamination of multiple carcasses. prevent further product contamination. Mandatory Components The existing regulations require that FSIS seeks comment on the extent to establishments prevent swine carcasses which written sanitary dressing plans All swine slaughter establishments contaminated with visible fecal are necessary for ensuring that existing would need to comply with the three contamination from entering the cooler. process controls are effective. mandatory provisions of the proposed While preventing swine carcasses While many establishments may rule, which are described in more detail already have written sanitary dressing in section IV. A. contaminated with visible fecal material from entering the chiller is an important plans, due to data limitations, this 1. Written Sanitary Dressing Plans safeguard for reducing the prevalence of analysis assumes that every establishment will need to develop a FSIS is proposing to amend 9 CFR pathogens on swine carcasses, this result generally cannot be effectively written sanitary dressing plan. This 310.18 to require swine slaughter assumption will help ensure a establishments to develop, implement, accomplished unless establishments implement appropriate measures to conservative estimate. Ongoing sanitary and maintain as part of their HACCP dressing documentation will allow both prevent contamination from occurring systems, written procedures to ensure the establishment and FSIS to identify throughout the slaughter and dressing that no visible fecal material, ingesta, or specific points in the production operation and implement process milk is present by the point of post- process where a lack of process control mortem inspection of swine carcasses. controls for them. Requiring may have resulted in product This requirement would address a establishments to keep daily written contamination or insanitary conditions. weakness of the current inspection records to document the system, which is that verification checks implementation and monitoring of their 2. Process Control Sampling and performed at the end of the slaughter process control procedures is a positive Analysis for Microbial Organisms and chilling process encourage industry step forward for public health. This Under this proposed rule, instead of to focus its activities on post-process ongoing documentation will allow both following a prescribed microbiological interventions to reduce contamination the establishment and FSIS to identify testing program, each establishment rather than prevention throughout the specific points in the production would be responsible for developing slaughter process. Prevention process where a lack of process control and implementing its own throughout the slaughter process is may have resulted in product microbiological sampling plan, which preferred because it promotes contamination or insanitary conditions. would be required to include carcass containing contamination close to its This will allow the establishment to sampling at pre-evisceration and post- origin, which reduces cross take the necessary corrective action to chill. Current microbiological standards

17 Key, Nigel and William McBride. 2007. The 18 HACCP size: Very Small Establishment—Less employees; Large Establishment—500 or more Changing Economics of U.S. Hog Production. USDA than 10 employees or less than $2.5 million in employees. ERS. Report No. 52. annual sales; Small Establishment—10–499 19 In 2016 there was 1 large establishment that did not exclusively slaughter market hogs.

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prescribe that all establishments Veterinary Medical Science Series, participating in the HIMP pilot, the monitor process control by sampling for 0701), a supervisory and non- benefits from adopting NSIS are generic E. coli. High volume supervisory consumer safety inspector, expected to outweigh the costs. This establishments are required to take one CSI (OPM Consumer Safety Inspection analysis assumes that very small sample per 1,000 carcasses, or request Series, 1862), and up to 7 Food establishments that exclusively an alternative rate. The Agency is Inspectors, FI (OPM Food Inspection slaughter market hogs do not have a seeking comment on both the number of Series, 1863). There are currently 418 high enough production volume to establishments conducting alternative full time equivalent units (FTE) justify incurring the costs of converting sampling rates and approved alternative assigned to slaughter inspection at the to the NSIS. The Agency is seeking sampling rates. Very low volume 22 large non-HIMP (27 large—5 HIMP) comment on this assumption. While the establishments are required to take 1 and 13 small establishments expected to 5 HIMP establishments are expected to sample per week of operation up to 13 convert to NSIS, Table 5. When these adopt the NSIS, they have already times a year. An industry survey found establishments convert to NSIS, Agency implemented the proposed changes that many establishments elect to personnel will require NSIS training. associated with the NSIS by their perform other microbiological tests in Additionally, the number of Agency participation in the HIMP program and addition to testing for generic E. coli.20 personnel required to inspect the are not expected to incur any new or slaughter process will likely change, see 3. Environmental Sampling additional expenses. As such, they are Agency Staffing section for details. not included in the group of FSIS is proposing to require that all establishments expected to incur an official swine slaughter establishments TABLE 5—CURRENT FSIS SLAUGHTER increase in costs associated with NSIS. develop, implement, and maintain in LINE POSITIONS AT NON-HIMP FA- This analysis excludes further their HACCP systems written CILITIES THAT SLAUGHTER EXCLU- consideration in the Preliminary procedures to prevent contamination of SIVELY MARKET HOGS Regulatory Impact Analysis of the costs the pre-operational environment by of submitting an attestation of work enteric pathogens. Number of related conditions due to its small Such procedures must be OPM job code positions expected cost.21 Costs examined incorporated into an establishment’s generally fall under three categories: HACCP, sanitation SOP, or other 1862 ...... 120 Labor, capital expenses, and developing prerequisite program. This analysis 1863 ...... 245 701 ...... 53 written procedures. assumes an establishment will incorporate its procedures for Total ...... 418 In the following sections, this analysis controlling contamination in the pre- presents the costs and benefits that operational environment into its Source: PHIS. would be generated over a range of sanitation SOP. These procedures must G. Expected Cost of the Proposed Rule assumptions with respect to how much include sampling and analysis of food of the industry chooses to adopt the contact surfaces in the pre-operational 1. Associated With the NSIS NSIS within five years. As was done environment at a frequency adequate to Components of the Rule with the NPIS, this analysis assumes a monitor the establishment’s ability to This analysis estimates the cost 5-year adoption period with roughly maintain sanitary conditions in the pre- associated with the proposed rule’s consistent annual adoption rates. These operational environment. NSIS components. The Agency assumes estimates are scaled for an illustrative that 22 large high volume and 13 small calculation and assume that 35 of the 40 F. Overview of the Proposed Rule’s high volume establishments, that have a establishments which are likely to adopt Agency Impact history of exclusively slaughtering the NSIS will incur additional costs This analysis also takes into market hogs, will adopt the NSIS associated with adoption. The Agency is consideration potential impacts to the portions of the rule. These 35 seeking comment on this assumption. Agency’s budget, which is expected to establishments have similar Note, the 5 HIMP establishments are not be impacted by changes in staffing and characteristics as the 5 HIMP expected to incur any additional costs training requirements. Under traditional establishments, such as volume and sub associated with adopting the NSIS and inspection, each slaughter line requires species slaughtered. Given the are therefore excluded from this portion. up to 11 full time positions. Generally, successful participation of the 5 HIMP Also, based on actual NPIS adoption these positions include both a establishments in the pilot program and rates thus far, the assumptions supervisory and non-supervisory Public industry’s continued interest in presented in this analysis may be an Health Veterinarian, PHV (OPM increasing the number of establishments overestimate of adoption of NSIS.

TABLE 6—NSIS ADOPTION RATE

Total number of establishments Percent Year adopted adopted Large Small

1 ...... 4 2 17 2 ...... 8 4 34 3 ...... 12 7 54 4 ...... 17 10 77

20 Viator C. et al. 2015. (a) Meat Industry Survey 21 It was estimated that submitting such an submitting an annual attestation would cost all 28 in Support of Public Health Risk-Based Inspection. attestation would require a Quality Control large and 13 small establishments approximately P5–42. Question 3.1. Technician with a labor compensation rate of $93.64 annually (2 minutes * $68.52 per hour * 41). $68.52 per hour, 2 minutes per year. Combined,

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TABLE 6—NSIS ADOPTION RATE—Continued

Total number of establishments Percent Year adopted adopted Large Small

5 ...... 22 13 100

a. Costs of Additional Establishment The majority of these, 369, are employee.27 To ensure a conservative Workers attributable to the large establishments estimate and account for employee × 23 This analysis expects establishments (41 (number of lines) 9), Table 7. rotation patterns as well as leave, FSIS operating under NSIS to experience an The remaining 14 positions are assumes that establishments will train 4 increase in labor costs. Under NSIS, attributable to the small establishments employees for each new position. Under × 24 establishments will be required to (14 (number of lines) 1), Table 7. these assumptions, large establishments According to the Bureau of Labor will need to train approximately 1,476 dedicate labor to sort and remove unfit × animals before ante-mortem inspection Statistics (BLS) the expected hourly (369 4) employees, while small wage for a Slaughter and Meat Packer establishments will need to train and trim; identify defects, such as × dressing defects, contamination, and occupation (‘‘production employee’’) is approximately 56 (14 4) employees. 25 pathology defects, on carcasses and $13.00. A benefits and overhead factor The cost of this training ranges from parts before post-mortem inspection; of two was then used to estimate the $419,768 to $1,260,836, with a midpoint ensure product is presented to Agency total labor costs. The total hourly labor estimate of $0.84 million (1,532 * $549), inspectors in an appropriate manner; costs to industry for a production Table 7. identify carcasses condemned on ante- employee including benefits and To account for expected turnover of × mortem inspection; denature all major overhead, is $26.00 per hour ($13.00 establishment employees, FSIS projects 26 that establishments will have to train portions of condemned carcasses on- 2). Based on data obtained through approximately 452 (1,532 × 0.295) site; maintain records to document the PHIS, the average large establishment replacement employees annually, 435 at number of animals condemned on ante- slaughters swine 269 days annually. the large and 17 at the small mortem inspection; and notify Agency Assuming workers work 8 hour shifts, establishments.28 The additional annual inspectors if they suspect that an animal the total annual remuneration cost to training cost for new employees is or carcass has a reportable or foreign these 22 large establishments is × expected to also be similar to the costs animal disease, while conducting approximately $20.65 million, (369 × × of HACCP training. Therefore, FSIS sorting activities. Based on $26.00 269 8), Table 7. The average estimates the combined annual training observations 22 of HIMP establishments, small establishment slaughters on 244 days annually. Again, assuming workers costs due to turnover to be this increase in work is expected to approximately $0.25 million (452 × require an increase in labor demand work 8 hour shifts, the total annual remuneration cost to these 13 small $549), with large establishments ranging from 6–10 additional workers accounting for approximately $0.24 per line per shift at large establishments. establishments is approximately $0.71 × × × million (435 × $549) and small This analysis assumes each large million, (14 $26.00 244 8), Table 7. These cost estimates take into establishments accounting for establishment that converts to the NSIS × consideration the fact that some approximately $9,333 (17 $549), Table will require 9 additional workers per 7. line per shift. Due to data limitations, establishments operate multiple lines × and multiple shifts. FSIS assumes that 1,080 (1,532 this analysis assumes small 0.705) retained employees, 1,041 at the establishments that convert to the NSIS Training Online Sorters and Carcass- large and 39 at the small establishments, will require 1 additional worker per line Inspection Helpers will require annual continuing per shift. The Agency seeks comment on Establishments are expected to incur education. This analysis assumes the number of additional employees costs associated with initially training annual continuing education costs to be each establishment will require due to employees to fill these positions, annual similar to annual HACCP refresher the NSIS. Costs associated with this replacement training, and continuing training costs, which range from $12 to labor fall into 3 categories: Wages and 29 education training. This analysis $36, with a mid-point of $24. Using benefits, training, and continuing assumes the cost to train online sorters the mid-point value, this analysis education. and carcass-inspection helpers are estimates the combined average Establishment Labor Wage Increases similar to the costs of training recurring cost for continuing education × production employees in HACCP, is $25,920 (1,080 $24), with large Many of the 22 large and 13 small establishments accounting for non-HIMP market hog establishments which range from $274 to $823 with a midpoint average of $549 per new that are assumed will adopt NSIS 27 Viator. C. et al. 2015. (b) Costs of Food Safety operate multiple lines and shifts. Taking Investments. Table 4–4. Training Costs for 23 these multiple lines and shifts into Source: PHIS. Management and Production Employees. 24 consideration, the number of industry Source: PHIS. 28 This estimate was rounded up. This analysis 25 BLS Occupational Employment Statistics, uses the industry turnover rate for non-durable positions is expected to increase by 383. Occupational Employment and Wages, May 2016. manufactured goods to estimate separations. 51–3023 Slaughters and Meat Packers http:// Source: BLS Economic News Release Table 16. 22 Observations were obtained through a survey www.bls.gov/oes/current/oes513023.htm accessed Annual total separations rates by industry and conducted, in February 2016, through the on 7/24/17. Last modified 3/31/17. region, not seasonally adjusted. http://www.bls.gov/ Salmonella Initiative Program and conversations 26 To be consistent with analyses done by the news.release/jolts.t16.htm. Accessed on 7/21/17. with industry at a meeting, which took place in Department of Health and Human Services, this Last updated on 3/16/17. February 2016, with the North American Meat analysis accounts for fringe benefits and overhead 29 Viator. C. et al. 2015. (b) Table 4–4. Training Institute. by multiplying wages by a factor of 2. Costs for Management and Production Employees.

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approximately $24,984 (1,041 × $24) and training cost to industry for staffing attributed to wages and benefits, Table and small establishments accounting for additional online personnel is 7. approximately $936 (39 × 24). approximately $16.45 million, applying Under the assumed adoption rate as a 3 percent discount rate over 10 years, set forth in Table 6, annualized wages Table 7. The majority of this cost is

TABLE 7—ESTABLISHMENT LABOR COSTS [M$]

Number of One-Time Recurring Type of establishment Type of expense personnel cost cost

Large ...... Wages ...... 369 ...... $20.65 Initial Training ...... 1,476 0.81 ...... Training Due to Labor Turnover ...... 435 ...... 0.24 Continuing Education ...... 1,041 ...... 0.02 Small ...... Wages ...... 14 ...... 0.71 Initial Training ...... 56 0.03 ...... Training Due to Labor Turnover ...... 17 ...... 0.009 Continuing Education ...... 39 ...... 0.03

Totals: One-Time ...... 0.84 Recurring Cost ...... 21.66 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 16.62 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 15.99

b. Costs of Capital Improvements: Line their HACCP systems (HACCP plans, conduct such documentation under two Configuration and Inspection Stations Sanitation Standard Operating assumptions. First, FSIS assumes that As proposed, participating in NSIS Procedures, sanitation SOPs, or other establishments would assign the task to does not necessitate capital prerequisite programs) written a quality control technician, QC, with improvements. As such, this analysis procedures for the segregation, an hourly compensation rate, which does not include capital expenditures. identification, and disposition of included wages, benefits, and overhead, However, if establishments believe that animals suspected of having one of the of $68.52.32 Second, FSIS assumes that capital expenditures would result in a condemnable generalized diseases or this work would take 1 hour at a large benefit they may voluntarily reconfigure conditions listed in 9 CFR 309. This establishment and 1⁄2 hour at a small or update their facilities so as to fully analysis assumes establishments will establishment. The Agency is seeking capture all the potential production coordinate this work and costs with the comment on this assumption. Based on efficiencies offered through development of written procedures to information obtained through PHIS, the participation in NSIS. Examples of such prevent the contamination of carcasses average large establishment operates 269 changes include line reconfiguration, and parts by enteric pathogens, fecal days per year. This equates to an annual which can cost between $10,000 to material, ingesta, and milk throughout cost of approximately $18,432 (268 * 1 $250,000,30 and the creation of an the entire slaughter and dressing * $68.52), or approximately $0.41 inspection station, which can cost operation, a mandatory component of million for all 22 establishments between $5,000 and $6,000.31 the proposed rule. Details of these costs ($18,432 * 22). Similarly, the cost to an Establishments may reduce these costs can be found in the sanitary dressing average small establishment, which by coordinating these facility updates costs section VI.2.a. based on data obtained through PHIS with previously planned establishment d. Ready-To-Cook Pork Standards operates 244 days a year, is renovations. The Agency is seeking approximately $8,359 (244 * 0.5 * comment on both the required and As proposed, establishments $68.52), or approximately $0.11 million voluntary capital costs associated with operating under NSIS are required to for all 13 small establishments ($8,359 the NSIS. collect, record, and analyze * 13). Combined, under the assumed documentation to demonstrate that the adoption rate as set forth in Table 6, c. Costs of Developing Ante-Mortem products resulting from their slaughter these costs are expected to increase Written Procedures operation meet the proposed definition NSIS establishments’ annual labor costs Under the proposed rule, of RTC pork products. While the Agency by approximately $0.39 million, establishments operating under NSIS is seeking comment on this requirement, applying a 3 percent discount rate over are required to develop and maintain in this analysis estimates the labor costs to 10 years, Table 8.

30 In a May 2004 study, ERS estimated the cost Ollinger, Michael, Danna Moore, Ram Chandran 32 To be consistent with analyses done by the of compliance per establishment with PR/HACCP (2004). Meat and Poultry Establishments’ Food Department of Health and Human Services, this rule. Capital expenditures in Hog Slaughter Safety Investments. USDA, Economic Research. analysis accounts for fringe benefits and overhead establishments were estimated to be $251,800. 31 Modernization of Poultry Slaughter Inspection; by multiplying wages by a factor of 2. Final Rule, 79 FR. 49566 (2014).

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TABLE 8—COST OF RTC REQUIREMENTS [M$]

Recurring Type of market hog only establishment Number of establishments Labor

Large ...... 22 $0.41 Small ...... 13 0.11

Totals: Recurring Cost ...... 0.51 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.39 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.38

2. Costs Associated With the Mandatory inspected establishments that slaughter reassessment for large establishments is Components of the Rule swine, FSIS is proposing to require that $730, the mid-point costs for small and The mandatory costs of the proposed all official swine slaughter very small establishments is $365.34 To rule are expected to apply to all 612 establishments develop, implement, and ensure a conservative cost estimate, this swine slaughter establishments and maintain in their HACCP systems analysis assumes all 612 swine begin within the first year after the rule written procedures to prevent the establishments will incur this cost. The is finalized. These costs are associated contamination of carcasses and parts by Agency is seeking comment on this with (a) establishing and implementing enteric pathogens, fecal material, assumption. The cost to all large written sanitary dressing plans to ingesta, and milk throughout the entire establishments is approximately prevent contamination of carcasses and slaughter and dressing operation. This $20,440 (28 * $730), small parts by enteric pathogens, fecal cost component includes: (1) establishments is approximately material, ingesta, and milk, throughout Developing these procedures into their $38,325 (105 * $365), and very small food safety system, (2) training, and (3) the entire slaughter and dressing establishments is approximately monitoring, recordkeeping, and operation; (b) modernizing process $174,835 (479 * $365). The annualized verification. control sampling programs for microbial costs to industry with a 3 percent organisms; and (c) sampling the Developing and Composing discount rate for all 612 swine slaughter slaughter environment for establishments is approximately $0.03 microbiological contamination. FSIS assumes incorporating written sanitary dressing plans into an million, Table 9. a. Costs of Developing, Composing, establishment’s HACCP system will Training, Monitoring, Recording, and result in a one-time HACCP plan Verifying Written Sanitary Dressing reassessment cost. According to the Plans Research Triangle Institute’s (RTI) Costs Under the mandatory portion of the of Food Safety Investments report,33 the proposed rule affecting all federally mid-point costs of a HACCP plan

TABLE 9—WRITTEN SANITARY DRESSING PLAN DEVELOPMENT [M$]

Number of One-time HACCP size plants cost

Large ...... 28 $0.02 Small ...... 105 0.04 Very Small ...... 479 0.17

Totals: One-Time Cost ...... 0.23 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.03 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.03

Training establishment, a recurring cost of based on the amount of time a panel of training new hires due to separations, experts recommends establishments Training programs should be utilized and the cost of conducting annual spend on training, which may exceed to ensure that establishment personnel refresher training. This portion of the the amount of time establishments understand and can execute the sanitary model is informed by the RTI Costs of actually spend on training. Due to data dressing plan. This training includes a Food Safety Investments Report.35 As is limitations, this analysis assumes the one-time initial training cost to the noted in the RTI report, these costs are number of establishment employees

33 Viator. C. et al. 2015. (b) RTI International titled ‘Costs of Food Safety Investments’ and was 34 Viator. C. et al. 2015. (b) Table 4–2. Costs of collected data on the cost of food safety investments prepared by Catherine L. Viator, Mary K. Muth, and Sanitation SOP Plan Development, Validation and for the production of meat and poultry products at Jenna E. Brophy. The contract number is No. AG– Reassessment. the pre-harvest and slaughter and processing stages. 3A94–B–3–0003. The order number is AG–3A94– 35 Viator, C. et al. 2015. (b). This data was provided to FSIS in a final report K–14–0056.

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conducting sanitary dressing tasks at tasks. The Agency is seeking comment refresher training is one minus the swine establishments is equal to the on this assumption. turnover rate. The total one-time cost to number of employees conducting As seen in Table 10, costs are shared train the employees for all 612 sanitary dressing tasks at beef slaughter across HACCP sizes, with large establishments is roughly $1.13 million, establishments.36 This is likely an establishments incurring higher costs. while the total recurring costs is roughly overestimate because unlike beef, the The rate of new hires, 29.5 percent, is $0.49 million, Table 10. The annualized majority of swine are scalded, de-haired, derived from the Bureau of Labor costs with a 3 percent discount rate over and polished prior to opening the Statistics’, BLS, 2016 turnover rate for 10 years for Sanitary Dressing task carcass, which decreases the need for non-durable manufacturing goods.37 related training is $0.62 million, Table employees to conduct sanitary dressing Likewise, the retention rate for the 10.

TABLE 10—SANITARY DRESSING TRAINING COSTS [M$]

Training costs Average HACCP size Number of number of One-time Recurring establishments employees Initial New hires Refresher

Large ...... 28 179 $0.61 $0.18 $0.09 Small ...... 105 25 0.32 0.09 0.04 Very Small ...... 479 3 0.20 0.06 0.03

Totals: One-Time Cost ...... 1.13 Recurring Cost ...... 0.49 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.62 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.64

Monitoring, Recordkeeping, and Inspection Final Rule,38 this analysis assumes it will take a QC manager 15 Verification assumes it will take a production minutes to perform a verification task This analysis also measures the employee 5 minutes to monitor and 5 and that such task will be completed annual monitoring, recordkeeping and minutes to maintain records for the each week that slaughter takes place. verification costs associated with sanitary dressing procedures, for a total Combined, these tasks are estimated to maintaining sanitary dressing of 10 minutes. Establishments are cost the entire industry roughly $0.85 procedures. Similar to the expected to verify the plan each day of million annually, applying a 3 percent Modernization of Poultry Slaughter production. In addition, this analysis discount rate over 10 years, Table 11.

TABLE 11—MONITORING, RECORD KEEPING AND VERIFICATION COSTS [M$]

Recurring costs Record HACCP Size Monitoring keeping Verification Combined

Large ...... $0.016 $0.02 $0.04 $0.07 Small ...... 0.038 0.04 0.12 0.20 Very Small ...... 0.070 0.07 0.44 0.58

Totals: Recurring Cost ...... 0.85 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.85 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.85

with requiring all establishments to million annualized, assuming a 3 Summary Cost of Written Sanitary develop written sanitary dressing percent discount rate over 10 years, Dressing Procedures procedures. Combined, these tasks are Table 12. Table 12 provides an overview of the expected to cost the industry $1.50 one-time and recurring costs associated

36 The Survey is at http://www.fsis.usda.gov/wps/ _ _ _ wcm/connect/184a3baa-2f73-4651-8aba- STEC Survey Comments Summary.pdf Annual total separations rates by industry and 68124580f4e0/Pathogen_Controls_in_Beef_ ?MOD=AJPERES]. region, not seasonally adjusted. Accessed report is at: [http://www.fsis.usda.gov/wps/wcm/ non-durable manufactured goods to estimate. on 7/21/17. Last updated on 3/16/17. connect/6d37a1fc-a3e1-40b6-90cc-719bdb391522/ Source: BLS Economic News Release Table 16. 38 79 FR 49566–49637, August 21, 2014.

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TABLE 12—SUMMARY OF COSTS ASSOCIATED WITH REQUIRING WRITTEN SANITARY DRESSING PROCEDURES [M$]

One-time costs Recurring costs HACCP size Number of Monitoring, establishments Development Initial training Training recording, validating

Large ...... 28 $0.02 $0.61 $0.27 $0.07 Small ...... 105 0.04 0.32 0.14 0.20 Very Small ...... 479 0.17 0.20 0.09 0.58

Totals: One-Time Cost ...... 1.36 Recurring Cost ...... 1.34 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 1.50 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 1.53

b. Process Control Sampling and benefits to industry. Such changes fall reassessment under the proposed 9 CFR Analysis for Microbial Organisms under four categories: Sampling plan 310.25(a)(2)(i). The RTI Costs of Food reassessment, transferring from Safety Investment report estimates the This section reviews the expected prescriptive to process testing costs of reassessing a microbiological changes in costs associated with the requirements, sampling rates, and sampling plan. For large establishments, proposed alterations to microorganism sample recordkeeping. This analysis these costs include labor, consultant process control verification. These costs uses results from the RTI International fees, and travel expenses, which are limited to the changes associated Meat Industry Survey in Support of with removing the requirement that combined range from $27,320 to Public Health Risk-Based Inspection $81,960, with a midpoint of $54,640 per swine establishments test carcasses for report 39 and Costs of Food Safety establishment. Costs to small and very generic E. coli and replacing them with Investments report.40 Each of these small establishments are limited to labor new testing requirements described categories is explained in detail below. above. While the proposed rule also expenses and range from $122 to $365, removes the codified Salmonella Process Control Sampling Plan with a midpoint of $243 per pathogen reduction performance Reassessment establishment.41 The annualized standards for swine, because the This analysis assumes establishments reassessment cost to industry is roughly codified standards are already no longer will incur one-time costs of conducting $0.19 million, assuming a 3 percent in use, there are no expected costs or a process control sample plan discount rate over 10 years, Table 13.

TABLE 13—COSTS OF PROCESS CONTROL SAMPLING PLAN REASSESSMENT [M$]

Per Number of establishment Total one- HACCP size establishments (mid-point time costs estimate) *

Large ...... 28 $0.05 $1.53 Small ...... 105 243 0.03 Very Small ...... 479 243 0.12

Totals: One-Time Cost ...... 1.67 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.19 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.22 * The values for Small and Very Small Establishments are in dollars.

Transferring From Prescriptive To establishments voluntarily conduct slaughter survey conducted by RTI, Process Testing Requirements additional microbiological testing to roughly 71 percent of very small, 80 verify process control. Common percent of small, and 100 percent of Current regulation prescribes that microbiologic tests include aerobic plate large establishments conduct each slaughter facility will test for count (APC), total plate count (TPC), microbiological testing in addition to 42 generic E. coli. In addition to and total coliforms. Based on the meat testing for generic E. coli.43 mandated generic E. coli testing, many

39 Viator C. et al. 2015. (a) RTI International and was prepared by Catherine Viator, Sheri C. 41 The report classifies establishments as either designed and conducted surveys on industry Cates, Shawn A. Karns, Peter Siegel, Ariana Napier, large or small. Given this data limitation, this practices to control pathogens and promote food and Mary K. Muth. The contract number is No. AG– analysis assumes very small and small safety. The sample design, administration 3A94–B–13–0003. The order No. is AG–3A94–K– establishments have similar reassessment costs. procedures, analysis and results were provided to 13–0053. 42 FSIS in a final report titled ‘Meat Industry Survey 9 CFR 310.25. in Support of Public Health Risk-Based Inspection’ 40 Viator C. et al. 2015. (b). 43 Viator C. et al. 2015. (a) P5–42. Question 3.1.

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Establishments voluntarily conducting establishments that currently test for assumption. To calculate testing costs, additional testing are an indication that generic E. coli and at least one other this analysis estimates the associated the generic E. coli testing is not the best microbial or pathogen indicator 44 labor expenses, laboratory fees, and means to verify process control in their would experience a cost reduction. shipping costs. The mean cost to an respective establishments. Given the similarity in laboratory testing establishment to test a single generic E. This analysis assumes that, if costs and costs associated with coli sample in house is $24.92.46 To permitted to choose a microbiological switching sampling programs, this have the sample tested at a contracted test to ensure process control, analysis assumes the remaining 158 lab, the cost is $48.76.47 Based on establishments would select the single establishments that exclusively test for survey results, this analysis assumes 79 best test that demonstrates process generic E. coli will continue to do so. percent of large, 28 percent of small and control at their establishment. Under Calculating the cost reductions is a 5 percent of very small establishments these assumptions, establishments that function of estimating the testing rate test in house.48 For these 454 currently test for generic E. coli and and testing costs. This analysis assumes establishments, the combined reduction conduct at least one other type of all large and small high volume in testing costs of no longer being microbiological test will stop testing for establishments conduct 1 test, every required to test for generic E. coli is generic E. coli. As a result, the 28 large 1,000 carcasses, and all small low expected to reduce annual testing costs (28 * 1.00), 41 small high volume (51 * volume and very small establishments by approximately $3.92 million, .80), 43 small low volume (54 * .80) and conduct 13 tests annually.45 The assuming a 3 percent discount rate over 342 very small (479 * .714) Agency is seeking comment on this 10 years, Table 14.

TABLE 14—RECURRING COSTS (SAVINGS) FROM NO LONGER REQUIRING GENERIC E. coli TESTING [M$]

Number of HACCP size establishments (Savings)

Large ...... 28 ($3.28) Small High Volume ...... 41 (0.40) Small Low Volume ...... 43 (0.02) Very Small ...... 342 (0.22)

Totals: Recurring Cost ...... (3.92) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... (3.92) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... (3.92)

Process Control Sampling Rates ($0.29 million/51) per establishment, establishment currently requires 573 Table 15. minutes (2.5 * 229) per year. Requiring The proposed rule would require establishments to increase their Process Control Sample Recordkeeping large and small high volume sampling rates from 1 to 2 samples per establishments to take samples at pre- This analysis takes into consideration 1,000 head would increase the average evisceration and post-chill, which the increase in record keeping costs large establishment’s annual number of would increase the number of samples associated with an increase in the samples to 7,548 samples annually taken from 1 sample per 1,000 carcasses sampling rate from 1 to 2 samples per (3,774,223/1,000 *2), which would to 2 samples per 1,000 carcasses for 1,000 head. According to PHIS data, the require approximately 18,870 minutes large and small high volume average large establishment slaughters (2.5 * 7,548) annually. The same establishments. The proposed rule does approximately 3.77 million swine per requirement would increase a small not require small low volume and very year. As such, this analysis estimates high volume establishment’s annual small establishments to increase their that a large establishment currently sampling to 458 (228,784/1,000 * 2), sampling rates. Under the proposed takes approximately 3,774 samples which would require approximately regulations, large establishments annual annually (3,774,223/1,000). The average 1,145 minutes (2.5 * 458) annually. As process control sampling costs are small high volume swine establishment such, the expected additional time expected to increase by roughly $2.34 slaughters 0.23 million swine per year required for recordkeeping is million, which is roughly $83,639 per and requires approximately 229 samples approximately 9,435 minutes (18,870– establishment ($2.34 million/28), Table (228,784/1,000) annually. Assuming it 9,435) for large establishments and 572 15. Small high volume establishments takes 2.5 minutes to record the results minutes (1,145–573) for small high annual process control sampling costs of each sample, the average large volume establishments. Assuming a establishment currently requires 9,435 quality control technician with a are expected to increase by roughly 49 $0.29 million, which is roughly $5,740 minutes (2.5 * 3,774) per year and the compensation rate of $68.52 per hour average small high volume conducts this work, the additional costs

44 Question 3.1 from the Meat Industry Survey in 71.4% of very small, 80% of small and 100% of 46 Viator C. et al. 2015. (b) Table 5–1. Support of Public Health Risk-Based Inspection large establishments conduct additional testing. 47 Viator C. et al. 2015. (b) Table 5–1. 45 Report asks ‘‘In addition to the generic E. coli 9 CFR 310.25(a)(2)(iii) (B). The current 48 Viator, C. et al. 2015. (b). regulation (9 CFR 310.25(a)(2)(v)) defines very low testing of carcasses and Listeria testing of ready-to- 49 To be consistent with analyses done by the eat (RTE) products required by FSIS regulation, volume swine slaughter establishments as slaughtering 20,000 head annually or fewer. For the Department of Health and Human Services, this does this establishment conduct microbiological purposes of this analysis, FSIS has labeled swine analysis accounts for benefits and overhead by testing?’’; 28.6% of very small, 20% of small, and establishments that annually slaughter more than multiplying wages by a factor of 2. 0% of large establishments responded no, meaning 20,000 head per year as high volume.

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to the average large establishment is costs to all large establishments is small high volume establishments is approximately $10,775 (9,435/60 * approximately $0.30 million ($10,775 * roughly $2.97 million, applying a 3 $68.52). Similarly, the additional cost to 28) and $0.03 million ($653 * 51) for percent discount rate over 10 years. the average small high volume small high volume establishments, Large establishments are expected to establishment is approximately $653 Table 15. incur the majority of this cost. (572/60 * 68.52). Scaling this up to all The combined annualized sampling establishments, the total increase in and recordkeeping cost to all large and

TABLE 15—COSTS CHANGES ASSOCIATED WITH INCREASE SAMPLING RATES [M$]

Number of Costs establishments Sampling Recordkeeping Combined

Large ...... 28 $2.34 $0.30 $2.64 Small–High Volume ...... 51 0.29 0.03 0.33

Totals: Recurring Cost ...... 2.97 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 2.97 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 2.97

Summary of Process Control Sampling percent discount rate, Table 16. expected to incur a portion of the one- Costs Changes However, only the 454 establishments time costs associated with plan Overall, the changes in sampling that currently conduct multiple types of reassessment, Table 16. Cost increases requirements under the proposed rule microbiological tests are expected to associated with testing and are expected to reduce industry wide experience a reduction in cost. The recordkeeping will be exclusively borne sampling costs by about $0.76 million remaining establishments, roughly 158 by large and small high volume annualized over 10 years, applying a 3 small and very small establishments, are establishments.

TABLE 16—SUMMARY OF CHANGES TO PROCESS CONTROL SAMPLING [M$]

Cost (savings) Type of change One-time Recurring

Plan Reassessment ...... $1.67 ...... Converting to Process Control Sampling ...... ($3.92) Testing Costs ...... 2.63 Recordkeeping ...... 0.33

Totals: One-Time Cost ...... 1.67 Recurring Cost ...... (0.95) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... (0.76) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... (0.72)

c. Environmental Sampling associated with written sanitary assumption, the annual number of tests dressing procedures. required by the entire industry is As proposed, all swine slaughter While establishments will set approximately 3,266. The Agency is establishments will be required to sampling frequency so as to ensure seeking comment on this assumption. control for enteric pathogen effective control, this analysis assumes Establishments are permitted to conduct contamination in the pre-operational each large establishment will take 4 a variety of tests, including testing for environment. Such controls will have to samples per 30 days of operation per Aerobic Plate Count, APC, Coliforms, be included in an establishment’s line, while each small high volume Generic E. coli, Total Plate Count, TPC, establishment will take 2 samples per 30 HACCP system, requiring a plan and Salmonella. The laboratory testing reassessment. This analysis assumes days of operation per line, and small low volume and very small establishments will coordinate this 15. Available at http://www.fsis.usda.gov/wps/wcm/ work with the HACCP plan establishments will take 1 sample per 30 connect/d3373299-50e6-47d6-a577-e74a1e549fde/ 50 reassessment required by the days of operation per line. Under this Controlling-Lm-RTE-Guideline.pdf?MOD=AJPERES. development of written sanitary Industry is familiar with this methodology for 50 In absence of other data we assumed sampling food-contact-surfaces in the post-lethality dressing procedures. As such the cost of establishments would conduct environmental environment to ensure that the surfaces are sanitary incorporating pre-operational sampling similar to the recommended frequencies and free of Listeria monocytogenes or an indicator environment sampling plans into an described on Page 91 in: FSIS Compliance organism. We assumed industry would take a Guidelines: Controlling Listeria monocytogenes in similar approach in sampling food-contact-surfaces establishment’s HACCP system is Post-lethality Exposed Ready-to-Eat Meat and in market hog establishments to meet the proposed included in the reassessment costs Poultry Products. January 2014. Accessed on 12/3/ environmental sampling requirements.

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costs for these test range from $15 to $32, with an average mean testing cost $32, with an average mean testing cost of $19, Table 17.51 of $19, Table 17.51

TABLE 17—LABORATORY TESTING COSTS

Test Minimum Mean Maximum

APC ...... $16 $18 $20 Coliforms ...... 15 18 22 E. coli ...... 15 18 22 Salmonella ...... 17 25 32 TPC ...... 16 16 17 Average ...... 16 19 23 Source: Viator. C. et al. 2015. Costs of Food Safety Investments. Table 5–1. Laboratory Testing Costs.

To ensure a conservative estimate this assumptions, the combined total annual combined expenditures is roughly $0.08 analysis assumes establishments will environmental sampling cost is million, assuming a 3 percent discount test for Salmonella, which is the most approximately $0.08 million (3,266 × rate over 10 years, Table 18. expensive option, Table 17. Under these $25). The annualized cost of these

TABLE 18—COSTS OF ENVIRONMENTAL SAMPLING [M$]

Number of Sampling HACCP size establishments costs

Large ...... 28 0.03 Small High Volume ...... 51 0.02 Small Low Volume ...... 54 0.004 Very Small ...... 479 0.03

Totals: Recurring Cost ...... 0.08 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.08 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.08

Summary of Voluntary and Mandatory to the NSIS incur the majority of costs. that the benefits of adopting NSIS Costs For example, the recurring labor costs outweigh the costs for other associated with the NSIS is the single establishments as well. Training staff The total annualized value of all costs largest recurring cost to industry and is accounts for the bulk of the costs to industry, under the assumed five year mostly incurred by large establishments. associated with written sanitary adoption rate as shown in Table 6, is It should be noted that the five HIMP dressing procedures. Sampling costs are roughly $17.84 million, assuming a 10 pilot establishments have already expected to decrease for those year annualization and a 3 percent incurred these costs, suggesting for establishments that currently conduct discount rate, Table 19. Large those five establishments, the benefits of microbiological tests in addition to establishments that voluntarily switch NSIS outweigh the costs. It also suggests generic E. coli.

TABLE 19—COMBINED COSTS TO INDUSTRY [M$]

Total costs Type of cost Number of establishments One-time Recurring

Voluntary: Establishment Labor ...... 35 $0.84 $21.66 Ready to Cook ...... 35 ...... 0.51 Mandatory: Written Sanitary Dressing Plan ...... 612 1.36 1.34 Process Control Sampling ...... 612 1.67 (0.95) Environmental Sampling ...... 612 0.0 0.08

Totals *: Number of Establishments ...... 612 One-Time Cost ...... 3.88 Recurring Cost ...... 22.65 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 17.84

51 Viator. C. et al. 2015. (b) Table 5–1. Laboratory Testing Costs.

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TABLE 19—COMBINED COSTS TO INDUSTRY—Continued [M$]

Total costs Type of cost Number of establishments One-time Recurring

Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 17.24 Totals Mandatory *: Number of Establishments ...... 612 One-Time Cost ...... $3.03 Recurring Cost ...... $0.48 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... $0.82 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... $0.88 Totals Voluntary *: Number of Establishments ...... 35 One-Time Cost ...... $0.84 Recurring Cost ...... $22.17 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... $17.02 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... $16.36 * Note, some of the totals may not equal the sum due to rounding.

H. Expected Benefits of the Proposed relationship was also validated More specifically, CDC applies 14 Rule internally in the risk assessment, with empirical, population-adjusted, and Pert an analysis of variance (ANOVA) test uncertainty distributions 1. Expected Benefits Associated With Public Health indicating that carcasses slaughtered in multiplicatively modeled as Monte establishments with relatively low Carlo distributions with repeated Switching existing FSIS inspection prevalence of Salmonella did not show sampling and Bayesian characteristics to program personnel (IPP) activities significantly different contamination the data collected at their surveillance toward more offline verification load (measured by enumeration of sites. CDC states that the illness activities (e.g., sanitation performance Salmonella colony-forming units per estimates are robust but likely standards, sampling, fecal inspections, gram) when compared with underestimates due to extrapolation and other inspection requirements) is establishments with relatively high from surveillance and outbreak data expected to reduce pathogen levels in prevalence of Salmonella. In other with underreporting not captured in the swine slaughter establishments. This words, if the proportion of carcasses CDC uncertainty estimates based conclusion is supported by a two-part with no detectable Salmonella ultimately on laboratory confirmed risk assessment which compares typical contamination increases with cases. CDC’s modeling approach used to FSIS market swine inspection outcomes implementation of the NSIS, illnesses estimate total uncertainty of illnesses is with the outcomes observed in a small caused by consumers’ exposure to these designed to capture multiple sources of subset of establishments that carcasses are expected to decrease uncertainty that were not explicitly participated in the HACCP-based proportionally. modeled—that is, the uncertainty in Inspection Models Project (referred to in CDC illness estimates captures the risk assessment as HIMP plants). The market hog Salmonella illness risk model estimates that the prevalence components of consumer behavior, Stage 1 of the risk assessment consists of Salmonella detected in carcasses will cross contamination and Salmonella of a multiple regression analysis to decline on average from an initial inactivation and growth between identify the relationships between 55 prevalence of 0.9407% to a final production and consumption. The establishment characteristics (including prevalence of 0.9066% if the 35 uncertainty surrounding illness HIMP status) and carcass contamination estimates is the largest contributor to prevalence. Stage 2 of the risk establishments identified adopt the new inspection system. The uncertainty of overall uncertainty in the NSIS risk assessment consists of multiple scenario model. The total uncertainty in the case models in which combinations of the final prevalence ranges from 0.8982% to 0.915%, at the 10th and rate is estimated to be bounded at the plausible changes to inspection 10th and 90th percentiles by 768 and procedures are inserted into equations 90th percentiles, respectively. This decrease in prevalence should 4,287 decreased cases, respectively. The created using the coefficients computed total case uncertainty distribution is in Stage 1. These scenarios produce correspond to an average decrease in illnesses due to market hog product dependent on the uncertainty in the estimates of change in carcass change in Salmonella prevalence in contamination prevalence under the consumption by an average of 2,533 annual cases.54 market hogs which has an average inspection procedures of NSIS. percent uncertainty of a 3.626% Changes in expected numbers of 53 Ebel, E. E., et al. 2012. Simplified framework decrease and is bounded at the 10th and Salmonella illness are estimated based for predicting changes in public health from 90th percentiles by a decrease of on a proportional relationship between performance standards applied in slaughter 1.0989% and 6.1362%, respectively. carcass contamination prevalence and establishments. Food Control 28(2): pp. 250 257. 54 The relationship between carcass illnesses that has been published in the public health from performance standards applied 52 53 contamination prevalence and human illnesses peer-reviewed literature. This modeled as in Williams et al., 2010, Estimating in slaughter establishments, Food Control,28. changes in public health following implementation 55 CDC’s surveillance and outbreak attribution 52 Williams M. S., Ebel, E. D., Vose, D. 2011. of hazard analysis and critical control point in the data are available in Scallan, E., et al. 2011. Framework for Microbial Food-Safety Risk United States broiler slaughter industry, Foodborne Foodborne Illness Acquired in the United States— Assessments Amenable to Bayesian Modeling. Risk Pathogens and Disease, 9 and Ebel et al., 2012, Major Pathogens. Emerging Infectious Diseases Analysis 31(4):548–565. Simplified framework for predicting changes in 17(1): 7–15.

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The prevalence estimates are modeled With adoption of the new inspection approximately 2,533 averted cases of with data variability and robust system, the average number of cases is Salmonella, potential savings range uncertainty components taken from likely to decrease to 67,324 with 10th from roughly $0.81 million to $14.74 sampling data and model parameter and 90th percentiles of 38,653 and million, with a midpoint of $9.33 estimates. The variability and 101,417 cases, respectively. million, Table 20. The cost savings uncertainty in the market hog The market hog risk assessment assuming the lowest cost per illness and proportion of illnesses is modeled from estimates that if the 35 establishments only 768 cases avoided, which FSIS market hog slaughter data and expected to covert to the NSIS over 5 corresponds to the 10th percentile, is Bayesian uncertainty. As demonstrated years do so, the number of human $0.25 million, Table 20. Alternatively, illness attributed to products derived in the 2010–2011 Market Hog Baseline the cost savings assuming the highest from market hogs could reduce by an Study, the market hog slaughter process cost per illness and 4,287 averted resulted in 2,390,482 carcasses average of 2,533 Salmonella illnesses. illnesses, which corresponds to the 90th produced per year and a weighted The combined robust model estimate of percentile, is $24.95 million, Table 20. Salmonella contamination prevalence total uncertainty in the case rate based rate of 1.66%; the 10th percentile on CDC Salmonella illness and FSIS Using the midpoint estimate of $9.33 estimate for this value is 2,218,169 market hog contamination data is million cost decrease and applying a carcasses and the 90th percentile estimated to be bounded at the 10th and five year adoption rate, the annualized estimate is 2,561,973 carcasses. This 90th percentiles by 768 and 4,287 value is approximately $7.09 million, at uncertainty in the carcass prevalence decreased cases, respectively. The ERS a 3 percent discount rate, Table 20. rate in market hogs according to the estimates of the annual per case cost of These estimated benefits may peer reviewed prevalence model foodborne illnesses for Salmonella underestimate total benefits because corresponds to the overall uncertainty range from roughly $321 to $5,820, with they do not include pain and suffering in consumer Salmonella cases of a mean of roughly $3,682.56 These costs. They may also overestimate illnesses from market hogs with an estimates factor in the costs of physician benefits and cost savings given the average of 69,857 cases and 10th and office, emergency room, and outpatient uncertainty between the number of 90th percentiles of 40,778 and 104,333 clinic visits, as well as hospitalizations, illnesses and the number of carcasses cases respectively, without intervention. productivity loss, and deaths. Assuming detectable with Salmonella.

TABLE 20—HEALTH BENEFITS FROM AVERTED CASES OF SALMONELLA

Cost per illness * Illnesses Percentile averted by Low Mid High scenario $321 $3,682 $5,820

Scenario costs, $M

10th ...... 768 ($0.25) ($2.83) ($4.47) Mean ...... 2,533 (0.81) (9.33) (14.74) 90th ...... 4,287 (1.38) (15.79) (24.95)

Totals (Low)(M$): Recurring Cost ...... ($0.25) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... ($0.19) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... ($0.18) Totals (Mid)(M$): Recurring Cost ...... ($9.33) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... ($7.09) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... ($6.81) Totals (High)(M$): Recurring Cost ...... ($24.95) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... ($18.97) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... ($18.22) * Source: USDA ERS, 2014, Cost Estimates of foodborne illnesses. http://www.ers.usda.gov/data-products/cost-estimates-of-foodborne-ill- nesses.aspx#48446 Accessed on 9/9/2011. Last Updated on 11/12/2014.

2. Other Benefits Associated With regulation. Specifically, the proposed average line speed were approximately Modernizing Existing Regulations rule amends requirements related to 12.49 percent faster than comparable slaughter line speeds,57 microbiological establishments.58 This increase in line The proposed regulation is expected testing, and sorting activities. Based on speed is synonymous with an increase to reduce the regulatory burden on the Evaluation of HACCP Inspection in industrial efficiency. To quantify the establishments by shifting from Models Project (HIMP) for Market Hogs benefit associated with this efficiency prescriptive to performance based report, the five HIMP establishments’ gain, this analysis used the North

56 USDA ERS, 2014, Cost Estimates of foodborne Final Report, November 2014, ‘‘In CY 2013, the 58 USDA FSIS Evaluations—HACCP Inspection illnesses. http://www.ers.usda.gov/data-products/ estimated line speeds at the 5 HIMP market hog Models Project (HIMP) for Market Hogs https:// cost-estimates-of-foodborne-illnesses.aspx#48446 establishments varied from 885 to 1,285 hph, with www.fsis.usda.gov/wps/portal/fsis/topics/ Accessed on 9/9/2011. Last Updated on 11/12/2014. an estimated average line speed of 1,099 hph. The regulatory-compliance/haccp/haccp-based- 21 non-HIMP comparison establishments had 57 inspection-models-project/evaluations-+himp According to the Evaluation of HACCP estimated line speeds of 571 to 1,149 hph, with an Inspection Models Project (HIMP) for Market Hogs estimated average line speed of 977 hph’’. Accessed on 1/6/2017. Last updated on 11/14/2014.

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American Meat Institutes’ average pork have a packer margin of $4.10 per head, assumed five year adoption rate. packer margins for 2010–2014, which an average large establishment’s surplus However, this increase in surplus may was reported to be $4.10 per head in could increase by approximately $2.04 be an overestimate given that an NAMI’s 2015 Meat and Poultry Facts.59 million, while an average small high increase in line speeds may change The pork packer margin is the price the volume establishment’s surplus could market hog prices, establishment packer receives less the cost of the hog increase by $0.18 million, all else being production costs, retail prices, and and production costs, making the packer equal. Combined, such an increase in export volumes. Additionally, consumer margin an approximation for producer efficiency at all 35 establishments benefits would be conditional on how surplus. FSIS requests comment on would increase producer surplus by an increase in line speed affects retail refining this estimate so as to roughly $47.33 million 60 (22 × $2.04 prices. As such, the Agency is seeking distinguish between accounting profit million + 13 × $0.18 million), which has comment on the extent to which such and economic profit—the latter being more precisely associated with producer an annualized benefit of roughly $47.33 an increase in line speeds would affect surplus. million, assuming a 3 percent discount market hog prices, establishment hours Assuming establishments increase rate over 10 years, Table 21. This of production, consumer prices, and their line speeds by 12.49 percent and estimate takes into consideration the export volumes.61

TABLE 21—INDUSTRIAL EFFICIENCY, (BENEFITS) M$

Change in efficiency Number of Type of establishment establishments Per establishment Combined

Large ...... 22 ($2.04) ($44.97) Small ...... 13 (0.18) (2.37) Combined * ...... 35 ...... (47.33)

Totals: Recurring Cost ...... (47.33) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... (36.14) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... (34.74) * Note, some of the totals may not equal the sum due to rounding.

The five HIMP establishments have approximately 4.29 hours per shift in estimated to be approximately $0.30 demonstrated that establishments the 21 non-HIMP market hog million. Both of these annualized operating under the NSIS are able to comparison establishments.63 Under estimates apply a 3 percent discount increase their compliance with NSIS, establishments sort, remove, and rate over 10 years. Details of these costs sanitation SOPs and HACCP identify swine unfit for slaughter before are provided below. regulations, lower their level of non- FSIS ante-mortem inspection. More food safety defects, achieve equivalent FSIS resources can be devoted to offline 1. Agency Staffing or better Salmonella verification testing inspection activities because initial The following section discusses the rates, and lower the level of violative sorting and tagging functions are impact on the Agency’s budget due to 62 chemical residues. The five performed by establishment personnel. reassignment of the inspection staff. As establishments that participated in the This change will provide Agency discussed in section F of this document, pilot project account for 15 percent of personnel with more time to conduct under traditional inspection, a single total swine production. offline inspection activities. slaughter line at a large establishment Additionally, NSIS inspection I. Expected Budgetary Impacts requires up to 11 FTEs and up to 2 FTEs increases the Agency’s ability to at a small market hog establishment. conduct more process and product Under the proposed rule, the Agency Under NSIS, a single slaughter line at a verification and increase monitoring of would shift Agency resources from large establishment is expected to humane handling procedures, which is online to offline activities. This analysis require 6 FTEs, while a small market expected to improve animal welfare. estimates such a shift will reduce labor hog establishment is expected to require FSIS inspectors devoted approximately expenses by approximately $6.67 3 FTEs. Large establishments with two 5.33 hours per shift to verifying humane million annually, Table 22. However, slaughter lines are expected to require handling activities for the HATS Agency personnel at NSIS 10 FTEs, while a small market hog categories in HIMP market hog establishments will require additional establishment with 2 slaughter lines is establishments compared to training, the annualized cost of which is expected to require 4 FTEs.

59 Nalivka, J.S., The 2015 Meat and Poultry Facts, relevant marginal cost curve would yield a margin 62 USDA FSIS Evaluations—HACCP Inspection NAMI December 2015. of $2.05 per head, thus making producer surplus Models Project (HIMP) for Market Hogs https:// 60 Note, some of the totals may not equal the sum half the amount estimated here as the change in www.fsis.usda.gov/wps/portal/fsis/topics/ due to rounding. industrial efficiency. Meanwhile, if demand and regulatory-compliance/haccp/haccp-based- 61 The Agency further notes that marginal costs supply elasticities for pork products are similar— inspection-models-project/evaluations-+himp Accessed on 1/6/2017. Last updated on 11/14/2014. typically increase as a function of production which may or may not be plausible—then consumer 63 USDA FSIS Evaluations—HACCP Inspection quantity, in which case profit margins reach zero surplus would increase by half the industrial for the last unit of production; indeed, the Models Project (HIMP) for Market Hogs https:// efficiency amount estimated here, thus making the phenomenon of rising marginal costs is consistent www.fsis.usda.gov/wps/portal/fsis/topics/ with the observation of HIMP line speed increases overall efficiency change estimate a reasonable regulatory-compliance/haccp/haccp-based- that are less than the maximum increase that is approximation for the total (consumer plus inspection-models-project/evaluations-+himp theoretically permissible. Assuming linearity of the producer) surplus gain. Accessed on 1/6/2017. Last updated on 11/14/2014.

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This analysis considers likely staffing market hog only establishments convert Table 22, if all 22 large establishments changes at the 22 large and 13 small to the NSIS, the Agency would require convert to NSIS, this analysis estimates establishments which are expected to 218 (187 at large and 31 at small a net decrease of 147 (334¥187) FTEs convert to NSIS over a course of five establishments) FTE food or consumer required for slaughter line inspection. years. Combined, these establishments safety inspectors. This number was The NSIS inspection program at these operate 46 shifts and 55 lines.64 This arrived at by assuming that under NSIS large establishments has a remuneration analysis uses PHIS data provided by the each of the 41 lines at the large value of just over $18.58 million. A Office of Field Operations (OFO) to establishments would have up to 3 FTEs similar analysis of the 13 small high calculate the number of FTEs assigned assigned to them and each of the 32 volume establishments reveals no net to each slaughter line. The FSIS Office shifts at the large establishments would change in the number of FTEs. of the Chief Financial Officer (OCFO) have up 2 FTEs assigned to them ((41 However, because the NSIS requires all provided the wage and benefit data for lines × 3 FTEs) + (32 shifts × 2 FTEs) each of these positions. This data was = 187 FTEs). Likewise, under NSIS, the inspectors to be CSIs, many of the FTEs used to model the staffing changes in 13 small establishments would each will likely be promoted from a FI to a terms of both full time positions and require between 2–3 FTEs, based on CSI. Overall, if all 35 establishments monetary value. Based on this data, to configuration, for a total of 31 FTEs. converted to NSIS, the Agency would conduct traditional inspection, the These staffing levels are based on FSIS’s require 147 fewer FTEs for swine Agency requires a combined 365 (334 at experience at HIMP establishments. The slaughter inspection, with an expected large and 31 at small establishments) combined labor costs for NSIS is annual decrease in costs of roughly FTE food or consumer safety inspectors approximately $21.70 million, Table 22. $8.73 million, which is equal to roughly at an annual cost of approximately This cost estimate includes expected $6.67 million a year, assuming a 3 $30.43 million, Table 22. If all 22 large grade increases associated with percent discount rate, Table 22. non-HIMP and 13 small high volume converting to the NSIS. As is shown in

TABLE 22—EXPECTED CHANGES IN AGENCY STAFFING [M$]

Traditional Proposed NSIS Increases (reductions) Type Number Number Number positions Labor costs positions Labor costs positions Labor costs

Large ...... 334 $27.56 187 $18.58 (147) ($8.98) Small ...... 31 2.87 31 3.12 0 0.25

Total ...... 365 30.43 218 21.70 (147) (8.73)

Totals: Recurring Cost ...... (8.73) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... (6.67) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... (6.42)

Since 2008, the Agency has annually TABLE 23—ANNUAL TURNOVER OF small establishments, Table 24. The lost, through attrition, 270 food FOOD INSPECTORS—Continued associated one-time cost of such training inspectors on average. See Table 23 for includes labor and travel expenses associated with the employees receiving details. The Agency plans to utilize all Fiscal year Number of personnel made available as a result of positions training, as well as temporary conversion to NSIS to fill these vacant replacement labor costs required to Average ...... 270 positions. fulfill the work that would have been Source: OFO. completed by the employees receiving TABLE 23—ANNUAL TURNOVER OF training. Based on the HIMP program, 2. Agency Training FOOD INSPECTORS this analysis assumes NSIS methods Three Day NSIS Methods Course training will take 3 days and Number of replacement labor will be equivalent to Fiscal year positions If all 22 large and 13 small market hog GS–13 step 5. Under these assumptions, establishments convert to NSIS over the the total one-time cost of NSIS training 2008 ...... 307 course of five years, as set forth in Table is approximately $0.64 million 2009 ...... 264 6, the Agency expects to train 266 ($550,942 for all large establishments 2010 ...... 231 personnel (218 CSIs and 48 PHVs), with and $81,697 for all small 2011 ...... 268 pay grades ranging from GS–8 to GS–13, establishments), Table 24. This one-time 2012 ...... 266 on NSIS methods. The majority of these cost equals approximately $0.07 million 2013 ...... 246 personnel, 228, are associated with 22 if it were annualized over 10 years 2014 ...... 273 large establishments, while the under a 3 percent discount rate, Table 2015 ...... 305 remaining 38 are associated with 13 24.

64 The 22 large establishments operate 41 establishments operate 14 lines during 14 shifts, slaughter lines during 32 shifts, while the 13 small source PHIS.

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TABLE 24—THREE DAY NSIS TRAINING COURSE [M$]

Cost of trainee Replacement labor Number of Costs of Number of Costs of Combined Type of establishment inspectors wages and replacement wages and costs requiring benefits for inspectors benefits for training trainees required replacements

Large ...... 228 $0.21 228 $0.34 $0.56 Small ...... 38 0.03 38 0.06 0.08

Totals: One-Time Cost ...... 0.64 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.07 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.07

Fill an Increase Need for Consumer Training includes a four-week meat been included in the Agency Staffing Safety Inspectors inspector course and a one-day section above. The combined one-time computer familiarization course. If all cost for converting FIs into CSIs is As proposed, slaughter line inspectors 22 large establishments convert to NSIS, roughly $2.16 million, Table 25. Nearly at a NSIS establishment will work both the Agency will need an additional 82 half of this cost stems from the need for on and off the slaughter line. As such, CSIs. Likewise, if all 13 small market replacement labor. Again, under the every inspection position will fall under hog establishments convert, the Agency proposed five year adoption rate, as set the CSI position classification. To fill will need an additional 16 CSIs. forth in Table 6, and under a 3 percent the increase in demand for CSIs, the Converting a FI into a CSI may result in discount rate the annualized costs is Agency plans to train existing FIs. a grade increase, the cost of which has approximately $0.23 million, Table 25.

TABLE 25—COST OF CONVERTING A FOOD INSPECTOR INTO A CONSUMER SAFETY INSPECTOR [M$]

Labor Training component Travel, M&IE, Combined Trainee Replacement and lodging costs

Four Week MI Course ...... $0.52 $0.98 $0.59 $2.09 One Day Computer Training ...... 0.03 0.05 ...... 0.07

Totals: One-Time Cost ...... 2.16 Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... 0.23 Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... 0.25

Combined Expected Budgetary Impacts would require approximately 147 fewer increase in demand for CSIs by FTEs to inspect the 55 65 slaughter lines converting existing FIs into CSIs. The The Agency’s budget is expected to be operating at these establishments. The one-time cost of doing so is impacted both by changes to personnel annual remuneration value of these 147 approximately $2.16 million, Table 26. and training requirements. First, there positions is roughly $8.73 million, Table The annualized value of the combined will be a reduced need for Agency 26. Second, the Agency will need to changes to the Agency’s budget is a net personnel to inspect a slaughter line train approximately 266 personnel on reduction of roughly $6.38 million, over operating under NSIS. If all 22 large and NSIS methods at a one-time cost of 10 years assuming a 3 percent discount 13 small establishments convert to NSIS approximately $0.64 million, Table 26. rate, Table 26. over the course of five years, the Agency Third, the Agency plans to meet the

TABLE 26—COMBINED CHANGES TO FSIS’S BUDGET [M$]

Total costs One-time Recurring

Changes to Agency Staffing ...... ($8.73) Three Day NSIS Training ...... $0.64 ...... Converting Food Inspectors into Consumer Safety Inspectors ...... 2.16 ......

Totals: One-Time Cost ...... 2.80

65 Source: PHIS.

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TABLE 26—COMBINED CHANGES TO FSIS’S BUDGET—Continued [M$]

Total costs One-time Recurring

Recurring Cost ...... (8.73) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... (6.38) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... (6.09)

J. Net Benefits establishments convert to NSIS (5 Table 27. The majority of the costs are HIMP, 22 large, and 13 Small high experienced by the 35 non-HIMP With the expected impact on the volume), the rule is anticipated to have establishments expected to voluntarily Agency’s budget and industry’s revenue a net benefit of approximately $31.77 switch to the NSIS in the form of included, and assuming all large and million a year, annualized over 10 years increased labor needs. small exclusively market hog assuming a 3 percent discount rate,

TABLE 27—NET COSTS AND (BENEFITS) [M$]

Number of establishments One-time Recurring

Costs To Industry ...... $3.88 $22.65 Voluntary * ...... ** 40 0.84 22.17 Mandatory ...... 612 3.03 0.48 Health Benefits *** ...... (9.33) Industrial Efficiency ...... (47.33) Impacts to Agency’s Budget ...... 2.80 (8.73)

Totals: One-Time Cost ...... 6.68 Recurring Cost ...... (42.75) Annualized Costs, Assuming a 3% Discount Rate Over 10 Years ...... (31.77) Annualized Costs, Assuming a 7% Discount Rate Over 10 Years ...... (30.40) * Further explanation and details on the NSIS adoption rate are provided in section G. Expected Cost of the Proposed Rule, Table 6: NSIS Adoption Rate and section J. Net Benefits, Table 28: Quantified Cost and (Benefits) of Various Adoption Rates. ** Note, this includes 5 HIMP establishments, which are not expected to incur any cost or benefits associated with the NSIS. *** Further explanation and details on the range of health benefits have been provided in section H. Expected Benefits Associated With Public Health, Table 20: Health Benefits from Averted Cases of Salmonella. The value of health benefits ranges from $0.19 million to $18.97 million, with a mean of $9.33 million.

Given the lack of data with which to costs or benefits associated with these 5 large establishment adopts the NSIS in make cost-benefit comparisons across establishments adopting the NSIS. addition to the 5 HIMP establishments. the industry, Table 28 provides a range However, all 612 establishments would Scenarios C, D, and E measure the net of possible adoption scenarios and their incur costs associated with the proposed costs and benefits of 50, 75, and 100 corresponding costs and benefits. Under rule’s mandatory components. As such, percent of the 40 establishments scenario A, only the 5 HIMP scenario A has a net cost. Scenario B converting to the NSIS, respectively. establishments adopt the NSIS. Because assesses the net cost and benefits of just Each of these scenarios are net these 5 establishments are already 6 establishments adopting the NSIS (5 beneficial. operating under NSIS practices, there HIMP and 1 large). This scenario reveals would not be any additional voluntary that the rule is net beneficial if just 1

TABLE 28—QUANTIFIED COST AND (BENEFITS) OF VARIOUS ADOPTION RATES [M$] ∧

Number to Costs (Benefits) Adopt * Net Mandatory @ NSIS Health Line speeds Agency budget

A ...... 5 $0.82 $0.0 $0.0 $0.0 $0.0 $0.82 B ...... 6 0.82 0.86 (0.27) (2.04) (0.38) (1.00) C ...... 23 0.82 8.35 (3.59) (18.01) (3.14) (15.57) D ...... 32 0.82 13.09 (5.52) (27.82) (4.88) (24.30) E ...... 40 0.82 17.02 (7.09) (36.14) (6.38) (31.77) * These numbers include the 5 HIMP establishments. However, because these establishments are already conducting NSIS practices, they did not contribute to quantified NSIS costs, health benefits, or the impacts to the Agency’s budget. @ These costs are incurred by all 612 swine establishments. ∧ Annualized Assuming a 3% Discount Rate Over 10 Years.

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K. Alternatives

TABLE 29—ALTERNATIVE POLICY OPTIONS

Alternatives Benefits Costs Net

A. No action (Baseline) ...... 1. No additional costs to industry ...... 1. Potential for inefficient use of agen- cy resources. 2. No potential increase in industrial efficiency. 3. Lack of incentive for establishments to innovate and improve their proc- ess controls. 4. No potential health benefits. B. Mandatory Portion of the Proposed 1. In comparison to the baseline, po- 1. In comparison to the baseline, po- Costs of $0.82M. Rule Only. tential $0.76M in Process Control tential $1.58M in Other Industry Sampling cost savings. Costs. C. Proposed Rule (40 Establishments 1. Potential $7.09M in averted ill- 1. Potential $16.62M Increase in In- Benefits of $31.77M. Adopt NSIS). nesses. dustry Labor Costs. 2. Potential $36.14M in Industrial Effi- ciency. 3. Potential $0.76M in Process Con- 2. Potential $1.97M in Other Industry trol Sampling cost savings. Costs. 4. Roughly $6.67M in Agency Labor 3. Roughly $0.30M in Agency Training Savings. Costs. D. Require All 612 Establishments 1. Potentially more than $7.09M in 1. Potential $25.9M Increase in Indus- Benefits of $16.83M. Adopt NSIS. averted illnesses. try Labor. 2. Potential $36.14M in Industrial Effi- 2. Potential $3.3M in Other Industry ciency. Costs. 3. Potential $0.76M in Process Con- 3. Roughly $0.68M in Agency Training trol Sampling cost savings. Costs. 4. Roughly $2.72M in Agency Labor Savings.

A—Taking No Action (Baseline) Additionally, under such a scenario, the C—The Proposed Rule Agency’s inspection staff would not be FSIS considered maintaining the Applying a 3 percent discount rate current inspection system for all 612 reassigned and the Agency would continue to require the same number of over 10 years the costs associated with swine slaughter establishments. The the proposed rule include $16.62 Agency rejected this alternative because inspectors. As such, the Agency’s labor million in additional industry labor it would forgo the benefits provided by costs would not decrease by the costs, $1.97 million in other industry NSIS. These benefits include the expected $6.67 million. However, costs including costs associated with establishment’s ability to innovate and because FIs will not be converted into meeting ready to cook standards, develop process controls which increase CSIs nor will inspectors require written sanitary dressing plans, and foodborne hazard detection and more additional training, the Agency would environmental sampling, and $0.3 efficiently use all of their resources. not incur the corresponding $0.30 million in Agency training costs. The Taking no action would also forgo million in training costs ($0.07 for NSIS quantified health benefits of the potential industrial efficiency increases. training plus $0.23 in CSI training). As Further, no action would result in the proposed rule are limited to reductions mentioned earlier, simultaneously in Salmonella illnesses and have an Agency continuing to dedicate resources increasing unscheduled and scheduled to food quality issues, at the expense of estimated value of $7.09 million, inspection procedures and decreasing assuming a 3 percent discount rate. increasing offline activities benefitting scheduled but not performed food safety. Last, taking no action would Allowing establishments to set line procedures accrues most of the public speeds so long as they maintain process also forgo potential health benefits health benefits. The unscheduled and identified under the proposed rule. control is expected to increase their scheduled tasks are currently not efficiency by $36.14 million, assuming a B—The Mandatory Portion of the performed as a result of lack of offline 3 percent discount rate. The proposed Proposed Rule personnel. In comparison to the rule is also expected to reduce industry FSIS considered limiting the proposed rule, this alternative would costs associated with process control proposed rule to only include the eliminate most of the public health sampling by roughly $0.76 million, mandatory sections. Under such a benefits associated with the rule, which assuming a 3 percent discount rate. scenario quantified benefits are limited are estimated at $7.09 million annually. Additionally, the proposed rule is to an estimated $0.76 million reduction Additionally, line speed restrictions expected to reduce the Agency’s labor in process control sampling costs. This would remain in place leading to an costs by roughly $6.67 million, cost reduction is expected to be off-set estimated loss of over $36.14 million in assuming a 3 percent discount rate. In by a $1.58 million increase in other industrial efficiency gains. FSIS has comparison to the baseline, the industry costs associated with requiring rejected this alternative in light of its proposed rule has an estimated net written sanitary dressing plans and expected net cost as compared to the benefit of $31.77 million, assuming a 3 environmental sampling. In comparison baseline as well as the decrease in net percent discount rate over 10 years and to the baseline, this scenario has a net benefits as compared to the proposed as such the Agency recommends the cost of roughly $0.82 million. rule. proposed rule.

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D—Requiring All Federally Inspected 10 years, the Agency rejects it because mandatory requirements are expected to Establishments Adopt the New Swine its net benefit is less than the proposed increase small establishments’ costs by Inspection System rule. roughly $660 ($1,869¥$1,296 + $87 = FSIS considered requiring all VII. Regulatory Flexibility Act $660) per establishment annually, an federally inspected swine slaughter Assessment amount that is expected to have little establishments to convert to NSIS. This effect on small entities. To put this in The FSIS Administrator has made a perspective, the average small and very would expand NSIS from the 5 HIMP, preliminary determination that this 27 large, and 13 small high volume small establishment slaughters over 21 proposed rule would not have a thousand swine annually. Using the establishments expected to convert significant economic impact on a under the proposed rule to include 572 American Meat Institute’s average pork substantial number of small entities in packer dollars per head margins for additional establishments. This the United States, as defined by the expansion would include low volume 2010–2014, the average small and very Regulatory Flexibility Act (5 U.S.C. 601 small establishment’s marginal revenue establishments that slaughter all types et seq.). FSIS used an establishment’s of swine as well as establishments that is $0.09 million (21,858 (heads HACCP processing size, which applies slaughtered) x $4.10 (average margin per slaughter a mix of species. to an individual establishment, as a head)). Additionally, the voluntary NSIS In comparison to the baseline, the proxy for business size. HACCP portion of the rule is expected to benefits of this alternative potentially processing sizes are the following: Large provide an overall cost savings for the include more than $7.09 million in establishments have 500 or more 13 small high volume establishments or averted illnesses, a $36.14 million employees; small establishments have increase in industrial efficiency, $0.76 between 10 and 499 employees; very roughly $87,449 per establishment that million in industrial savings associated small establishments have fewer than 10 adopt the NSIS. This estimate takes into with process control sampling employees or annual sales of less than consideration the increase in labor cost requirements, and $2.72 million in $2.5 million. At the beginning of section ($43,439 per establishment), cost Agency labor cost savings, assuming a 3 VI is a list of specific economic issues associated with meeting ready-to-cook percent discount rate over 10 years. The that the Agency is seeking comment on. standards ($6,300 per establishments) production at these 572 additional Section VI also provides additional and cost savings from increased establishments represents less than 8 details on costs incurred by small industrial efficiency ($137,189 per percent of total production and as such businesses. establishment). See section VI for is not expected to return substantial The proposed rule’s mandatory additional details. reductions in contamination prevalence requirements would affect Executive Order 13771 or illnesses and falls outside of the approximately 584 small entities, 105 current risk assessment. In particular, small and 479 very small. First, the Consistent with E.O. 13771 (82 FR the uncertainty around measurement mandatory requirements include that all 9339, February 3, 2017), we have and model parameters that is already small and very small establishments estimated that this proposed rule would included in the health benefit create written sanitary dressing plans yield cost savings. Assuming a 7 percent calculations for the proposed rule likely with cost components of development discount rate and a perpetual time produce wide enough estimates that the of the plan, training of employees, and horizon and a starting year of 2018, the impact of adopting the NSIS in all recordkeeping, at an annualized cost of proposed rule would yield establishments would have an effect $1,869 per plant, applying a 3 percent approximately $24.97 million (2016$) in within the uncertainty bounds. The discount rate over 10 years. Second, the cost savings, not including health increase in industrial efficiency remains mandatory proposed changes to process benefits. Therefore, if finalized as similar to that of the proposed rule control sampling requirements are proposed, this rule is expected to be an because these additional establishments expected to decrease small E.O. 13771 deregulatory action. are generally less automated and establishments’ sampling costs by maintain slower line speeds to address roughly $1,296 per establishment VIII. E-Government Act higher rates of quality defects associated annually, applying a 3 percent discount with non-market hogs. While compared rate over 10 years. In addition to this FSIS and USDA are committed to to the baseline, this alternative reduces sampling cost reduction, the Agency achieving the purposes of the E- Agency labor costs; it would result in would allow small and very small Government Act (44 U.S.C. 3601, et. additional promotions reducing the establishments to modify their sampling seq.) by, among other things, promoting benefit in comparison to the proposed plans to collect samples less frequently the use of the internet and other rule. once they have collected 13 consecutive information technologies and providing In comparison to the baseline, the weekly samples and have demonstrated increased opportunities for citizen potential costs associated with this that they are effectively maintaining access to Government information and alternative include a $25.90 million process control. FSIS is also proposing services, and for other purposes. increase in industrial labor, a $3.30 to allow establishments to develop IX. Executive Order 12988, Civil Justice million increase in other industry costs sampling plans that are more tailored to Reform which include costs associated with their specific establishment, and thus ready to cook standards, written more effective in monitoring their This proposed rule has been reviewed sanitary dressing plans, and specific process control than the current under Executive Order 12988, Civil environmental sampling, and roughly generic E. coli criteria. Third, the Justice Reform. Under this rule: (1) All $0.68 million in Agency training costs. mandatory environmental sampling State and local laws and regulations that In comparison to the proposed rule, the program is expected to increase the are inconsistent with this rule will be additional increases in costs to industry average small and very small preempted; (2) no retroactive effect will predominately fall on small and very establishments’ costs by $87 per be given to this rule; and (3) no small business. While this alternative establishment annually, assuming a 3 administrative proceedings will be has a net benefit of $16.83 million, percent discount rate over ten years. required before parties may file suit in assuming a 3 percent discount rate over Therefore, the proposed rule’s court challenging this rule.

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X. Executive Order 13175 XII. Environmental Impact maintain in their HACCP systems This rule has been reviewed in Each USDA agency is required to written procedures for the segregation, accordance with the requirements of comply with 7 CFR part 1b of the identification, and disposition of Executive Order 13175, ‘‘Consultation Departmental regulations, which animals exhibiting signs of moribundity, central nervous system disorders, or and Coordination with Indian Tribal supplements the National pyrexia. In addition, each official swine Governments.’’ E.O. 13175 requires Environmental Policy Act regulations slaughter establishment would need to Federal agencies to consult and published by the Council on maintain, as part of its HACCP system, coordinate with tribes on a government- Environmental Quality. Under these written procedures for (1) preventing to-government basis on policies that regulations, actions of certain USDA throughout the entire slaughter and have tribal implications, including agencies and agency units are dressing operation, contamination of regulations, legislative comments or categorically excluded from the carcasses and parts by enteric proposed legislation, and other policy preparation of an Environmental pathogens, fecal material, ingesta, and statements or actions that have Assessment (EA) or an Environmental milk and (2) preventing contamination Impact Statement (EIS) unless the substantial direct effects on one or more of the pre-operational environment by agency head determines that an action Indian tribes, on the relationship enteric pathogens. The procedures may have a significant environmental between the Federal Government and addressing prevention of contamination Indian tribes, or on the distribution of effect (7 CFR 1b.4 (b)). FSIS is among by enteric pathogens would need to power and responsibilities between the the agencies categorically excluded from include microbial testing. Furthermore, Federal Government and Indian tribes. the preparation of an EA or EIS (7 CFR all swine slaughter establishments FSIS has assessed the impact of this 1b.4 (b)(6)). operating would have to maintain rule on Indian tribes and determined Establishments that operate under the records that document that the products that this rule does not, to our proposed NSIS are expected to be able resulting from its slaughter operations knowledge, have tribal implications that to slaughter and process swine more meet the definition of RTC pork require tribal consultation under E.O. efficiently than is possible under products. Each establishment operating 13175. If a Tribe requests consultation, current regulations, leading to a under the NSIS would also need to FSIS will work with the Office of Tribal reduction in production costs. FSIS submit on an annual basis an attestation Relations to ensure meaningful expects that consumer demand for pork to the management member of the local consultation is provided where changes, products will determine the number of FSIS circuit safety committee stating additions and modifications identified swine slaughtered rather than that it maintains a program to monitor herein are not expressly mandated by production costs. Because of the and document any work-related Congress. efficiencies in the NSIS, the price of conditions of establishment workers. pork products may decrease. The XI. USDA Nondiscrimination Statement The requirement that swine slaughter predicted price reduction could lead to establishments have written procedures No agency, officer, or employee of the a slight increase in demand for pork in their HACCP systems is already USDA must, on the grounds of race, products. With the slight increase in covered under an approved information color, national origin, religion, sex, pork product sales, some establishments collection system, Pathogen Reduction/ gender identity, sexual orientation, may choose to increase the number of Hazard Analysis and Critical Control disability, age, marital status, family/ swine slaughtered, which could result Point Systems (OMB control number parental status, income derived from a in an increase in the number of 0583–0103). Therefore, this requirement public assistance program, or political condemned carcasses and parts that of this proposed rule would create no beliefs, exclude from participation in, must be disposed of. However, because new burden on establishments. deny the benefits of, or subject to the anticipated change in sales is very The proposed requirement that swine discrimination any person in the United small, the Agency has determined that slaughter establishments monitor their States under any program or activity the change in the number of swine systems through microbial testing and conducted by the USDA. slaughtered, as well as the number of recordkeeping would create a new How To File a Complaint of condemned carcasses and parts to be information collection burden. For each Discrimination disposed of, will be very small and thus sample on which a microbiological test will not have a significant individual or is conducted, there are two ‘‘responses’’ To file a complaint of discrimination, cumulative effect on the human for the establishment: One response for complete the USDA Program environment. Therefore, this regulatory the actual collecting of the sample and Discrimination Complaint Form, which action is appropriately subject to the sending it to the laboratory for analysis, may be accessed on-line at http:// categorical exclusion from the and the other for recording the sample www.ocio.usda.gov/sites/default/files/ preparation of an EA or EIS provided result. Under the proposed rule, large docs/2012/Complain_combined_6_8_ under 7 CFR 1b.4(b)(6) of the USDA establishments would test and record 12.pdf, or write a letter signed by you regulations. microbiological results for enteric or your authorized representative. pathogens, at both pre-evisceration and Send your completed complaint form XIII. Paperwork Reduction Act post-chill, 13 times a day; small high- or letter to USDA by mail, fax, or email: In accordance with section 3507(d) of volume establishments, one-time a day; Mail: U.S. Department of Agriculture, the Paperwork Reduction Act of 1995, and small low-volume and very small Director, Office of Adjudication, 1400 the information collection or establishments, 13 times a year. FSIS Independence Avenue SW, Washington, recordkeeping requirements included in estimates that large establishments DC 20250–9410, Fax: (202) 690–7442, this proposed rule have been submitted would test and record microbial results Email: [email protected]. for approval to OMB. for the pre-operational environment Persons with disabilities who require Title: Swine Slaughter Inspection. weekly; small establishments, biweekly; alternative means for communication Type of Collection: New. small low-volume and very small (Braille, large print, audiotape, etc.), Abstract: Under this proposed rule, establishments, monthly. should contact USDA’s TARGET Center establishments operating under NSIS Estimated Annual Recordkeeping at (202) 720–2600 (voice and TDD). would have to develop, implement, and Burden: Swine Slaughter Inspection.

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Respondents: Official swine Estimated Average Annual Number of Estimated Total Annual Responses: establishments. Responses (samples) per Respondent: 226,558. Estimated Number of Respondents: Large establishments 6,846; small high Estimated Total Annual 612 (28 large, 51 small high volume, 54 volume establishments 430; and small Recordkeeping Burden: 9,440 hours. low volume and very small small low volume, and 479 very small). establishments 25.

Average Estimated annual Total Time per Total Respondents number of number of annual respone annual respondents responses per responses in minutes burden hours respondent

Large establishments ...... Microbial testing data rec- 28 6,846 191,688 2.5 7,987 ordkeeping. Small high volume estab- Microbial testing data rec- 49 430 21,070 2.5 878 lishments. ordkeeping. Small low volume establish- Microbial testing data rec- 54 25 1,350 2.5 56 ments. ordkeeping. Very small establishments .. Microbial testing data rec- 479 25 11,975 2.5 499 ordkeeping.

Total Recordkeeping ...... 612 7,326 226,083 ...... 9,420 Burden for process control.

Estimated Annual Reporting Burden: Estimated Average Annual Number of Estimated Total Annual Responses: Swine Slaughter Inspection. Responses per Respondent: Large 226,083. Respondents: Official swine establishments 6,846; small high Estimated Total Annual establishments. volume establishments 430; and small Recordkeeping Burden: 47,655 hours. Estimated Number of Respondents: low volume and very small 612 (28 large, 51 small high volume, 54 establishments 25. small low volume, and 479 very small).

Average Estimated annual Total Time per Total Respondents number of number of annual respone annual respondents responses per responses in minutes burden hours respondent

Large establishments ...... Microbial testing data rec- 28 6,846 191,688 12.5 39,702 ordkeeping. Small high volume estab- Microbial testing ...... 49 430 21,070 12.5 4,389 lishments. Small low volume establish- Microbial testing ...... 54 25 1,350 15 338 ments. Very small establishments .. Microbial testing ...... 479 25 11,975 15 2,993

Total Reporting Burden ...... 612 7,326 226,083 ...... 47,655

FSIS is also proposing a new This is a new recordkeeping Estimated Maximum Number of regulation that would create a new requirement that FSIS has submitted to Respondents: 41. information collection burden, in that it OMB for approval. Estimated Average Annual Number of would require that market hog slaughter Estimated Annual Reporting Burden Responses per Respondent: Large establishments operating under NSIS for Submitting an Annual Attestation on establishments 1; small high volume submit on an annual basis an attestation Work-Related Conditions to the FSIS establishments 1. to the management member of the local Circuit Safety Committee: Swine FSIS circuit safety committee stating Slaughter Inspection. Estimated Maximum Total Potential that it maintains a program to monitor Respondents: Official market hog Annual Responses: 41. and document any work-related slaughter establishments that operate Estimated Total Annual conditions of establishment workers. under NSIS. Recordkeeping Burden: 1.37 hours.

Average Estimated annual Total Time per Total Respondents number of number of annual respone annual respondents responses per responses in minutes burden hours respondent

Large establishments ...... Attestation on Work-Re- 28 1 28 2 .93 lated Conditions.

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Average Estimated annual Total Time per Total Respondents number of number of annual respone annual respondents responses per responses in minutes burden hours respondent

Small high volume estab- Attestation on Work-Re- 13 1 49 2 .43 lishments. lated Conditions.

Total Reporting Burden ...... 41 1 41 ...... 1.37

SUMMARY OF BURDEN SWINE publication on-line through the FSIS § 301.2 Definitions. SLAUGHTER INSPECTION web page located at: http://www.fsis. * * * * * usda.gov/federal-register. Ready-to-cook (RTC) pork product. Total No. Respondents ...... 612 FSIS also will make copies of this Any slaughtered pork product free from Average Annual No. Re- publication available through the FSIS bile, hair, scurf, dirt, hooves, toe nails, sponses per Respondent .. 14,693 Constituent Update, which is used to claws, bruises, edema, scabs, skin Total Annual Responses ...... 453,157 provide information regarding FSIS lesions, icterus, foreign material, and Average Hours per Re- policies, procedures, regulations, odor, which is suitable for cooking sponse ...... 125 Federal Register notices, FSIS public without need of further processing. Total Annual Burden Hours .. 57,216.37 meetings, and other types of information * * * * * that could affect or would be of interest Copies of this information collection to our constituents and stakeholders. assessment can be obtained from Gina PART 309—ANTE-MORTEM The Update is available on the FSIS web INSPECTION Kouba, Office of Policy and Program page. Through the web page, FSIS is Development, Food Safety and able to provide information to a much ■ 3. The authority citation for part 309 Inspection Service, USDA, 1400 broader, more diverse audience. In continues to read as follows: Independence Avenue SW, Room 6065, addition, FSIS offers an email South Building, Washington, DC 20250; Authority: 21 U.S.C. 601–695; 7 CFR 2.18, subscription service which provides 2.53. (202) 720–5627. automatic and customized access to ■ Comments are invited on: (a) Whether selected food safety news and 4. Add § 309.19 to read as follows: the proposed collection of information information. This service is available at: is necessary for the proper performance § 309.19 Market hog segregation under the http://www.fsis.usda.gov/subscribe. new swine slaughter inspection system. of FSIS’s functions, including whether Options range from recalls to export (a) The establishment must conduct the information will have practical information, regulations, directives, and utility; (b) the accuracy of FSIS’s market hog sorting activities before the notices. Customers can add or delete animals are presented for ante-mortem estimate of the burden of the proposed subscriptions themselves, and have the collection of information, including the inspection. Market hogs exhibiting signs option to password protect their of moribundity, central nervous system validity of the methodology and accounts. assumptions used; (c) ways to enhance disorders, or pyrexia must be disposed the quality, utility, and clarity of the XV. Proposed Regulatory Amendments of according to paragraph (c) of this section. information to be collected; and (d) List of Subjects ways to minimize the burden of the (b) The establishment must develop, information collection on those who are 9 CFR Part 301 implement, and maintain written procedures to ensure that market hogs to respond, including through the use of Meat inspection. appropriate automated, electronic, exhibiting signs of moribundity, central mechanical, or other technological 9 CFR Part 309 nervous system disorders, or pyrexia do collection techniques or other forms of Animal diseases, meat inspection, not enter the official establishment to be information technology. reporting and recordkeeping slaughtered. The establishment must Comments may be sent to both Gina requirements. incorporate these procedures into its Kouba, Office of Policy and Program HACCP plan, or sanitation SOP, or other Development, at the address provided 9 CFR Part 310 prerequisite program. above, and the Desk Officer for Animal diseases, meat inspection. (c) The establishment must identify Agriculture, Office of Information and For the reasons stated in the carcasses of livestock that establishment Regulatory Affairs, Office of preamble, FSIS is proposing to amend 9 employees have sorted and removed Management and Budget, Washington, CFR Chapter III as follows: from slaughter or that FSIS inspectors DC 20253. To be most effective, have condemned on ante-mortem comments should be sent within 60 PART 301—TERMINOLOGY; inspection with a unique tag, tattoo, or days of the publication date of this ADULTERATION AND MISBRANDING similar device. The establishment must proposed rule. All responses to this STANDARDS immediately denature all major portions notice will be summarized and included of the carcass on-site and dispose of the ■ 1. The authority citation for part 301 in the request for OMB approval. All carcass according to 9 CFR part 314.3. continues to read as follows: comments will also become a matter of (d) The establishment must maintain public record. Authority: 7 U.S.C. 138–138i, 450, 1901– records to document the number of 1906; 21 U.S.C. 601–695; 7 CFR 2.7, 2.18, animals disposed of per day because XIV. Additional Public Notification 2.53. they were removed from slaughter by Public awareness of all segments of ■ 2. Amend § 301.2 by adding the establishment sorters before ante- rulemaking and policy development is definition of ‘‘Ready-to-cook (RTC) pork mortem inspection by FSIS inspectors. important. Consequently, FSIS will product’’ in alphabetical order to read as These records are subject to review and announce this Federal Register follows: evaluation by FSIS personnel.

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(e) The establishment must determined by the inspection service, if (2) Sampling frequency. immediately notify FSIS inspectors if a mirror is used, it must comply with Establishments, except for very small the establishment has reason to believe the requirements of § 307.2(m)(6). and very low volume establishments as that market hogs may have a notifiable * * * * * defined in paragraphs (c)(1)(i) and (ii) of animal disease. Notifiable animal ■ 7. Amend § 310.18 by adding this section, must collect and analyze diseases are designated by World paragraphs (c) through (e) to read as samples at a frequency proportional to Animal Health Organization. follows: the establishment’s volume of production at the following rates: PART 310—POST-MORTEM § 310.18 Contamination of carcasses, (i) Establishments, except for very INSPECTION organs, or other parts. small and very low volume establishments as defined in paragraphs ■ 5. The authority citation for part 310 * * * * * (c)(1)(i) and (ii) of this section, must continues to read as follows: (c) Procedures for controlling contamination throughout the slaughter collect and analyze samples at a Authority: 21 U.S.C. 601–695; 7 CFR 2.18, and dressing operation. Official swine frequency of once per 1,000 carcasses, 2.53. slaughter establishments must develop, but a minimum of once during each ■ 6. Amend § 310.1 by revising implement, and maintain written week of operation. paragraph (b)(3) to read as follows: procedures to prevent contamination of (ii) Very small and very low volume carcasses and parts by enteric establishments as defined in paragraph § 310.1 Extent and time of post-mortem pathogens, fecal, ingesta, and milk (c)(1)(i) and (ii) of this section must inspection; post-mortem inspection staffing collect and analyze samples at least standards. contamination throughout the entire slaughter and dressing operation. once during each week of operation * * * * * Establishments must incorporate these starting June 1 of every year. If, after (b) * * * consecutively collecting 13 weekly (3) Swine Inspection. There are two procedures into their HACCP plans, or sanitation SOPs, or other prerequisite samples, very small and very low systems of post-mortem inspection: The volume establishments can demonstrate New Swine Slaughter Inspection System programs. These procedures must include sampling and analysis for that they are effectively maintaining (NSIS), which may be used for market process control, they may modify their hogs, and the traditional inspection microbial organisms in accordance with the sampling location and frequency sampling plans. system, which may be used for all (iii) An establishment may substitute requirements in paragraphs (c)(1) and swine. an alternative frequency if: (2) of this section to monitor their (i) The NSIS may be used for market (A) The alternative is an integral part ability to maintain process control. hogs if the official establishment of the establishment’s verification requests to use it and meets or agrees to (1) Sampling locations. Official swine procedures for its HACCP plan; and meet the requirements in 9 CFR 309.19 slaughter establishments, except for (B) FSIS does not determine, and and 9 CFR 310.26. The Administrator very small establishments or very low notify the establishment in writing, that may permit establishments that volume establishments, must collect the alternative frequency is inadequate slaughter classes of swine other than and analyze samples for microbial to verify the effectiveness of the market hogs to use NSIS under a waiver organisms at the pre-evisceration and establishment’s process controls for from the provisions of the regulations as post-chill points in the process. Very enteric pathogens. provided by 9 CFR 303.1(h). The small establishments and very low (iv) Establishments must sample at a Administrator also may permit volume establishments must collect and frequency that is adequate to monitor establishments that slaughter market analyze samples for microbial organisms their ability to maintain process control hogs and other classes of swine to at the post-chill point in the process. All for enteric pathogens. Establishments slaughter market hogs under NSIS and swine establishments must sponge or must maintain accurate records of all slaughter other classes of swine under excise tissue from the ham, belly, or test results and retain these records as traditional inspection. jowl areas. provided in paragraph (e) of this (ii) Traditional inspection shall be (i) Very small establishments are section. used for swine when NSIS is not used. establishments with fewer than 10 (d) Procedures for controlling The following inspection staffing employees or annual sales of less than contamination in the pre-operational standards are applicable to swine $2.5 million. environment. Official swine slaughter slaughter configurations operating (ii) Very low volume establishments establishments must develop, under traditional inspection when NSIS annually slaughter no more than 20,000 implement, and maintain written is not used. The inspection standards swine, or a combination of swine and procedures to prevent contamination of for all slaughter lines are based upon the other livestock not exceeding 6,000 the pre-operational environment by observation rather than palpation, at the cattle and 20,000 total of all livestock. enteric pathogens. Establishments must viscera inspection station, of the spleen, (iii) An establishment may substitute incorporate these procedures into their liver, heart, lungs, and mediastinal alternative sampling locations if: HACCP plans, sanitation SOPs, or other lymph nodes. In addition, for one- and (A) The establishment has support to prerequisite programs. These two-inspector lines under traditional demonstrate the alternative sampling procedures must include sampling and inspection, the standards are based locations are able to provide a definite analysis of food contact surfaces in the upon the distance walked (in feet) by improvement in monitoring process pre-operational environment for the inspector between work stations; control than at pre-evisceration and microbial organisms to ensure that the and for three or more inspector post-chill; and surfaces are sanitary and free of enteric slaughter lines, upon the use of a mirror, (B) FSIS does not determine, and pathogens and that water used to clean as described in § 307.2(m)(6) of this notify the establishment in writing, that food contact surfaces is free of enteric chapter, at the carcass inspection the alternative sampling locations are pathogens. The sampling frequency station. Although not required in a one- inadequate to verify the effectiveness of must be adequate to monitor the or two-inspector slaughter the establishment’s process controls for establishment’s ability to maintain configuration, except in certain cases as enteric pathogens. sanitary conditions in the pre-

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operational environment. written procedures to ensure that § 310.27 Attestation requirements. Establishments must maintain accurate market hog carcasses contaminated with Each establishment that participates records of all test results and retain septicemia, toxemia, pyemia, or in the New Swine Slaughter Inspection these records as provided in paragraph cysticercosis are properly removed System (NSIS) must submit on an (e) of this section. before the point of post-mortem annual basis an attestation to the (e) Recordkeeping requirements. inspection of carcasses. The management member of the local FSIS Official swine slaughter establishments establishment must incorporate these circuit safety committee stating that it must maintain daily records sufficient procedures into its HACCP plan, or maintains a program to monitor and to document the implementation and sanitation SOP, or other prerequisite document any work-related conditions monitoring of the procedures required program. These procedures must cover of establishment workers, and that the under paragraphs (c), (d) and (e) of this establishment sorting activities required program includes the following section. Records required by this section under this section. elements: may be maintained on computers if the (c) Line speed limits. The line speed (a) Policies to encourage early establishment implements appropriate limits in 9 CFR 310.1 do not apply to reporting of symptoms of injuries and controls to ensure the integrity of the the establishment, provided that they illnesses, and assurance that it has no electronic data. Records required by this are able to maintain effective process policies or programs in place that would section must be maintained for at least control and prevent contamination of discourage the reporting of injuries and one year and must be accessible to FSIS. carcasses and parts by fecal material and illnesses. ■ 8. Amend § 310.25 as follows: enteric pathogens. Establishments (b) Notification to employees of the ■ a. Remove paragraph (a)(2)(ii)(C); operating under NSIS must reduce their nature and early symptoms of ■ b. Remove the second sentence in line speed as directed by the Inspector- occupational illnesses and injuries, in a paragraph (a)(2)(iii)(A); in-Charge (IIC). The IIC is authorized to manner and language that workers can ■ c. Remove ‘‘20,000 swine,’’ in direct an establishment to operate at a understand, including by posting in a paragraph (a)(2)(v)(A); reduced line speed when in their conspicuous place or places where ■ d. Remove the ‘‘swine’’ row in Table judgment a carcass-by-carcass notices to employees are customarily 1—Evaluation of E. Coli Test Results; inspection cannot be adequately posted, a copy of the FSIS/OSHA poster ■ e. Remove the ‘‘Hogs’’ and ‘‘fresh pork performed within the time available due encouraging reporting and describing sausages’’ rows and footnote (b) from to the manner in which the carcasses are reportable signs and symptoms. Table 2—Salmonella Performance presented to the online inspector, the (c) Monitoring, on a regular and Standards. health conditions of a particular herd, or routine basis, injury and illness logs, as ■ 9. Add § 310.26 to read as follows: factors that may indicate a loss of well as nurse or medical office logs, § 310.26 Establishment responsibilities process control. workers’ compensation data, and any under the new swine slaughter inspection (d) Records. (1) The establishment other injury or illness information system. must maintain records to document that available. ■ (a) Facilities. The establishment must the products resulting from its slaughter 11. Add § 310.28 to read as follows: operation meet the definition of ready- comply with the facilities requirements § 310.28 Severability. to-cook pork product in 9 CFR 301.2. in 9 CFR part 307. If the establishment Should a court of competent has less than three inspection stations, These records are subject to review and evaluation by FSIS personnel. jurisdiction hold any provision of 9 CFR the establishment must provide a mirror 310.27 to be invalid, such action will at the carcass inspection station in (2) The establishment must maintain records to document the number of not affect any other provision of 9 CFR accordance with 9 CFR 307.2(m)(6). parts 309 or 310. (b) Carcass sorting and disposition. animals disposed of per day by plant The establishment must conduct carcass sorters or condemned per day by FSIS Done in Washington, DC, on January 19, sorting activities and identify any inspectors upon post-mortem 2018. condemnable conditions or defects inspection. These records are subject to Paul Kiecker, before carcasses are presented to online review and evaluation by FSIS Acting Administrator. inspectors. The establishment must personnel. [FR Doc. 2018–01256 Filed 1–31–18; 8:45 am] develop, implement, and maintain ■ 10. Add § 310.27 to read as follows: BILLING CODE 3410–DM–P

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Part III

Legal Services Corporation

45 CFR Part 1603 State Advisory Councils and Requests for Documents and Testimony; Proposed Rules

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LEGAL SERVICES CORPORATION ‘‘within six months after the first (Board) recommended including the meeting of the Board, the Board request repeal of part 1603 on LSC’s regulatory 45 CFR Part 1603 the Governor of each State to appoint a agenda, but made the initiative a low nine-member advisory council for each priority. State Advisory Councils state.’’ 42 U.S.C. 2996c(f). If ninety days On January 30, 2017, the President AGENCY: Legal Services Corporation. elapsed without the Governor’s signed Executive Order 13771, appointing the advisory council, then ‘‘Reducing Regulation and Controlling ACTION: Notice of proposed rulemaking. ‘‘the Board [was] authorized to appoint Regulatory Costs.’’ Through this SUMMARY: This proposed rulemaking such a council.’’ Id. LSC implemented Executive order, the President directed would remove the Legal Services this statutory requirement in 1975 at 45 the heads of executive departments and Corporation’s (LSC) regulation on state CFR part 1603. agencies to identify at least two prior advisory councils. LSC believes this The state advisory councils’ primary regulations to be repealed for each new action is appropriate because the state duty was to notify LSC of any ‘‘apparent regulation issued. By operation of the advisory councils are no longer active violation’’ by a recipient. 45 CFR LSC Act, LSC is not an executive and their oversight functions have been 1603.5. LSC defined ‘‘apparent department or agency subject to the replaced adequately by other offices and violation’’ as ‘‘a complaint or other Executive order. 42 U.S.C. 2996d(e). processes established by Congress or written communication alleging facts Consistent with the intent of the LSC. Executive Orders 13563, which, if established, constitute a Executive order to reduce unnecessary ‘‘Improving Regulation and Regulatory violation of the [LSC] Act, or any regulations, however, LSC prioritized Review,’’ and 13771, ‘‘Reducing applicable rules, regulations or the repeal of part 1603. Regulation and Controlling Regulatory guidelines promulgated pursuant to the Prior to initiating rulemaking, LSC Costs,’’ direct agencies to review their Act.’’ Id. 1603.2(b). conducted an analysis of the oversight existing regulations and repeal or revise LSC met the requirements of section mechanisms that have developed since any that are obsolete or unnecessarily 1004(f) of the LSC Act by requesting the LSC Act was passed in 1974. LSC burdensome. Although LSC is not an state governors to appoint state advisory determined that the state advisory agency of the Federal government councils within the period established councils’ oversight functions have been subject to either executive order, LSC by the Act and part 1603. In 1976, 46 replaced adequately by other offices and regularly reviews its regulations and has state advisory councils were in processes established by Congress or determined that this regulation can be existence, but later reports reflect that LSC since 1974. Complainants not only have more audiences—including LSC’s eliminated. many of these councils rarely, if ever, met. Letter from Suzanne B. Glasow, OIG, LSC’s Office of Compliance and DATES: Comments must be received by Senior Counsel for Operations and Enforcement (OCE), and state bodies— March 5, 2018. Regulations, Office of General Counsel, for their complaints, but they also have ADDRESSES: You may submit comments to Mike Sims, Office of Rep. Pete Laney more vehicles for filing complaints, by any of the following methods: at 1 (Sept. 19, 1989). By 1983, only six including by phone, postal mail, email, • Federal Rulemaking Portal: Follow state advisory councils appeared to be online, and through grantee grievance the instructions for submitting operational and by 1989, only Colorado procedures. Furthermore, the OIG, OCE, comments. and Indiana had functioning state and state bodies go beyond the state • Email: [email protected]. advisory councils. Id. To the best of advisory committees’ narrow role of Include ‘‘Part 1603 Rulemaking’’ in the LSC’s knowledge, there currently are no collecting alleged violations by also subject line of the message. active state advisory councils. investigating the allegations and using • Fax: (202) 337–6519. Furthermore, LSC has no records of various tools to ensure grantee • Mail: Stefanie K. Davis, Assistant complaints forwarded from the state compliance. LSC’s analysis of these General Counsel, Legal Services advisory councils. existing oversight mechanisms is Corporation, 3333 K Street NW, covered in greater detail in the II. History of This Rulemaking Washington, DC 20007, ATTN: Part Justification Memorandum for 1603 Rulemaking. In 2014, LSC’s Office of the Inspector • Rulemaking to Rescind 45 CFR part Hand Delivery/Courier: Stefanie K. General (OIG) recommended that LSC 1603—State Advisory Councils, Davis, Assistant General Counsel, Legal either ensure that the state advisory available at www.lsc.gov/rulemaking. Services Corporation, 3333 K Street NW, councils are established and operational On April 23, 2017, the Committee Washington, DC 20007, ATTN: Part or rescind part 1603. LSC proposes to approved Management’s proposed 1603 Rulemaking. rescind part 1603 for four reasons: (1) 2017–2018 rulemaking agenda, which Instructions: LSC prefers electronic LSC complied with the requirements of included rescinding 45 CFR part 1603 as submissions via email with attachments section 1004(f) of the LSC Act by a priority rulemaking item. On October in Acrobat PDF format. LSC will not requesting state governors to appoint 15, 2017, the Committee voted to consider written comments sent to any state advisory councils within the recommend that the Board authorize other address or received after the end period established by the Act and part LSC to begin rulemaking on part 1603. of the comment period. 1603; (2) section 1004(f) of the LSC Act On October 17, 2017, the Board FOR FURTHER INFORMATION CONTACT: and part 1603 provide LSC with authorized LSC to begin rulemaking. On Stefanie K. Davis, Assistant General discretion to exercise or not exercise the January 21, 2018, the Committee voted Counsel, Legal Services Corporation, option to appoint state councils; (3) to to recommend that the Board authorize 3333 K Street NW, Washington, DC LSC’s knowledge, there are no publication of this NPRM. On January 20007; (202) 295–1563 (phone), (202) functioning state advisory councils; and 23, 2018, the Board authorized 337–6519 (fax), or [email protected]. (4) there are now numerous oversight publication of the NPRM with a 30-day SUPPLEMENTARY INFORMATION: mechanisms that fulfill the function of comment period. the state advisory councils. I. Background At its January 2015 meeting, the III. Discussion of the Proposed Changes Section 1004(f) of the Legal Services Operations and Regulations Committee LSC proposes to remove part 1603. In Corporation Act of 1974 required that (Committee) of LSC’s Board of Directors an NPRM published elsewhere in this

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issue of the Federal Register, LSC consider written comments sent to any proposes to remove the existing version proposes to add to part 1603 a other address or received after the end of part 1603 pertaining to state advisory regulation governing requests for of the comment period. councils. In its place, LSC proposes to testimony and subpoenas for documents FOR FURTHER INFORMATION CONTACT: add this regulation. in cases to which LSC is not a party. Stefanie K. Davis, Assistant General 1603.1 Scope, Purpose, and List of Subjects in 45 CFR Part 1603 Counsel, 202–295–1563, [email protected]. Applicability SUPPLEMENTARY INFORMATION: Advisory committees; Legal services. LSC proposes to prescribe which ■ For the reasons discussed in the I. Background proceedings and employees will be governed by the rule. All LSC preamble and under the authority of 42 LSC proposes to create a new employees, including former employees, U.S.C. 2996g(e), LSC proposes to regulation, known as a Touhy members of the Board of Directors, and remove 45 CFR part 1603. regulation, that will establish a process employees of the OIG, are governed by by which litigants in cases where LSC PART 1603—[REMOVED AND this rule concerning information is not a party may obtain documents or RESERVED] acquired during the performance of testimony from LSC and its employees. official duties or because of such Arising from the Supreme Court’s Dated: January 25, 2018. person’s official capacity with LSC. This decision in U.S. ex rel Touhy v. Ragen, rule applies to all non-federal litigants Stefanie K. Davis, 340 U.S. 462 (1951), Touhy regulations in civil, criminal, or administrative Assistant General Counsel. define agencies’ procedures for proceedings to which LSC is not a party. [FR Doc. 2018–01733 Filed 1–31–18; 8:45 am] responding to document or testimony Congress created LSC through the BILLING CODE 7050–01–P requests, as well as individual agency Legal Services Corporation Act, 42 employees’ obligation to follow such U.S.C. 2996 et seq. and appropriates procedures. funds for LSC annually. See, e.g., LEGAL SERVICES CORPORATION Between 2013 and 2017, LSC and its Consolidated Appropriations Act, 2017, Office of the Inspector General (OIG) 45 CFR Part 1603 Public Law 115–31, 131 Stat. 135 received several subpoenas and requests (2017). These funds are appropriated for for testimony or documents, but did not Requests for Documents and LSC to fulfill its congressionally- have internal or external guidance in Testimony mandated mission. Therefore, it is place regarding such requests. At the appropriate to mirror traditional federal AGENCY: Legal Services Corporation. OIG’s recommendation, LSC added entities in creating LSC’s Touhy ACTION: rulemaking on requests for documents Notice of proposed rulemaking. regulation. and testimony to its rulemaking agenda SUMMARY: The Legal Services in 2015. On October 15, 2017, the 1603.2 Definitions Corporation (LSC) proposes to create a Operations and Regulations Committee LSC proposes to define the following rule governing subpoenas and requests (Committee) of LSC’s Board of Directors for LSC documents and testimony by terms. (Board) voted to recommend that the Certify: LSC proposes to define this non-federal litigants in cases in which Board authorize rulemaking on part term to mean that it will authenticate LSC is not a party. Currently, LSC has 1603. On October 17, 2017, the Board copies of any document produced by no internal or external procedures in authorized LSC to begin rulemaking. affixing its seal to the document. place to process such requests. This rule Regulatory action is justified for four Employee: LSC proposes to define this provides the public with guidance on reasons. First, a Touhy regulation will term to include current and former where to send requests and establishes promote efficiency and timeliness by employees of LSC and the OIG, as well procedures by which those requests will identifying those LSC officials with the as members of its Board of Directors. be processed. authority to respond to requests or LSC: Consistent with the § 1602.2 DATES: Comments must be received by subpoenas for documents or testimony definition, LSC refers to both the Legal March 5, 2018. and establishing a procedure for LSC’s Services Corporation and the LSC Office ADDRESSES: You may submit comments consideration of such requests. Second, of the Inspector General, unless by any of the following methods: it will minimize the possibility of otherwise specified. • Federal Rulemaking Portal: Follow involving LSC in controversies not Testify and testimony: LSC proposes the instructions for submitting related to its functions. Third, it will to define these terms to mean written or comments. prevent the misuse of LSC’s employees oral statements made under oath before • Email: [email protected]. as involuntary expert witnesses for any tribunal or official body. Include ‘‘Touhy Rulemaking’’ in the private interests or as inappropriate subject line of the message. expert witnesses as to the state of the 1603.3 What is LSC’s policy on • Fax: (202) 337–6519. law. Fourth, it will maintain LSC’s presentation of testimony and • Mail: Stefanie K. Davis, Assistant impartiality toward private litigants. production of documents? General Counsel, Legal Services On January 21, 2018, the Committee LSC proposes to prohibit current and Corporation, 3333 K Street NW, voted to recommend that the Board former employees from providing Washington, DC 20007, ATTN: Touhy approve this notice of proposed documents or testimony in response to Rulemaking. rulemaking (NPRM) for publication. On requests covered by this rule without • Hand Delivery/Courier: Stefanie K. January 23, 2018, the Board accepted prior authorization from the General Davis, Assistant General Counsel, Legal the Committee’s recommendation and Counsel or OIG Legal Counsel. Services Corporation, 3333 K Street NW, voted to approve publication of this 1603.4 How does a person request Washington, DC 20007, ATTN: Touhy NPRM with a 30-day comment period. Rulemaking. voluntary testimony from an employee? • Instructions: LSC prefers electronic II. Discussion of Proposed Rule LSC proposes to require parties to submissions via email with attachments In an NPRM published elsewhere in submit requests for testimony from LSC in Acrobat PDF format. LSC will not this issue of the Federal Register, LSC employees to its General Counsel as

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LSC’s chief legal officer. LSC proposes Examples of when responding may be (b) It is LSC’s policy to provide to direct parties to submit requests for inappropriate include instances where information, data, and records to non- OIG employees’ testimony to the OIG the subpoena was not validly issued or federal litigants to the same extent and Legal Counsel. served, where the subpoena has been in the same manner that they are made Requests must state the nature of the withdrawn, or where discovery has been available to the public. When subject to requested testimony, why the stayed. the jurisdiction of a court or other information sought is unavailable by tribunal presiding over litigation 1603.7 When will LSC certify the any other means, and the reasons why between non-federal parties, LSC will authenticity of records? providing the testimony would further follow all applicable procedural and LSC’s interests. This information will LSC proposes to certify, upon request, substantive rules relating to the assist the General Counsel and the OIG the authenticity of records to be production of information, data, and Legal Counsel in their decision making. disclosed. Such a service does not records by a non-party. The availability generally use significant resources. 1603.5 How will LSC respond to a of LSC employees to testify in litigation request for expert testimony from an 1603.8 Does this part give individuals not involving federal parties is governed employee? any rights? by LSC’s policy to maintain strict impartiality with respect to private LSC proposes to prohibit its LSC proposes this section to make litigants and to minimize the disruption employees from serving as expert clear that no private rights arise from of official duties. witnesses without authorization from this rule. (c) This part applies to state, local, the General Counsel or OIG Legal List of Subjects in 45 CFR Part 1603 and tribal judicial, administrative, and Counsel, as appropriate. This section legislative proceedings, and to federal prevents public resources from being Administrative practice and procedure; Archives and records; judicial and administrative proceedings. used for private litigation. Even if (d) This part does not apply to: Courts. employees and LSC are compensated, (1) Any civil or criminal proceedings ■ time spent preparing and delivering For the reasons discussed in the to which LSC is a party. testimony is time diverted from support preamble, the Legal Services (2) Congressional requests or of LSC’s mission. Corporation proposes to add 45 CFR subpoenas for testimony or documents. part 1603 to read as follows: 1603.6 How will LSC respond to a (3) Consultative services and technical assistance provided by LSC in subpoena for documents? PART 1603—TESTIMONY BY carrying out its normal program LSC proposes procedures for its EMPLOYEES AND PRODUCTION OF activities. employees to follow if they are DOCUMENTS IN PROCEEDINGS (4) Employees serving as expert personally served with subpoenas WHERE THE UNITED STATES IS NOT witnesses in connection with requesting information acquired in the A PARTY professional and consultative services as course of performing official duties or approved outside activities. In cases because of their official capacity. This Sec. 1603.1 Scope, purpose, and applicability. where employees are providing such provision has the dual benefits of 1603.2 Definitions. outside services, they must state for the providing guidance for subpoenaed 1603.3 What is LSC’s policy on record that the testimony represents employees and instructing members of presentation of testimony and their own views and does not the public how to request the production of documents? necessarily represent the official information they seek. 1603.4 How does a person request voluntary testimony from an employee? position of LSC. Consistent with Federal agencies’ (5) Employees making appearances in Touhy regulations, LSC proposes to treat 1603.5 How will LSC respond to a request for expert testimony from an employee? their private capacity in legal or legally insufficient subpoenas as FOIA administrative proceedings that do not requests. Thus, LSC may work toward 1603.6 How will LSC respond to a subpoena for documents? relate to LSC, such as cases arising out honoring the spirit of the subpoena 1603.7 When will LSC certify the of traffic accidents, crimes, domestic without violating its obligations and authenticity of records? relations, etc., and not involving privileges. Furthermore, LSC’s interests 1603.8 Does this part give individuals any professional and consultative services. in remaining transparent and in rights? (6) Any civil or criminal proceedings conserving the public’s trust are best Authority: 42 U.S.C. 2996g(e). in State court brought on behalf of LSC. served by providing public information (7) Any criminal proceeding brought § 1603.1 Scope, purpose, and applicability. when requested. LSC also proposes to as a result of a referral for prosecution direct employees to appear before the (a) This part sets forth rules to be by the OIG or by any other Inspector court and state that they cannot, followed when a litigant requests an General in connection with a case consistent with these rules, provide the employee of the Legal Services worked jointly with the OIG. required documents when the General Corporation (LSC), including LSC’s Counsel or OIG Legal Counsel has not Office of the Inspector General (OIG), to § 1603.2 Definitions. made a decision about the legal provide testimony in a deposition, trial, (a) Certify means to authenticate sufficiency of a subpoena by the date on or other similar proceeding concerning official LSC documents. which an LSC or OIG employee is information acquired in the course of (b) Employee means current and commanded to appear. Without this performing official duties or because of former LSC employees, including provision, such individuals would be such person’s official capacity with temporary employees, OIG employees, faced with violating a court order or LSC. This part also sets forth procedures and members of the Board of Directors. violating LSC rules and policies when for the handling of subpoenas for (c) LSC means the Legal Services responding to a subpoena. LSC proposes documents and other requests for Corporation. Unless explicitly stated that the General Counsel or OIG Legal documents in the possession of LSC or otherwise, LSC includes the OIG. Counsel may determine that responding the OIG, and for the processing of (d) Testify and testimony include in- to the subpoena is not appropriate and requests for certification of copies of person, oral statements before a court, direct an employee not to respond. documents. legislative or administrative body and

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statements made pursuant to § 1603.5 How will LSC respond to a to the rules governing public disclosure depositions, interrogatories, request for expert testimony from an established in 45 CFR part 1602. declarations, affidavits, or other formal employee? (c) If the General Counsel or the OIG participation. No employee shall serve as an expert Legal Counsel denies approval to witness in any proceeding described in comply with a subpoena for testimony § 1603.3 What is LSC’s policy on § 1603.1(c) or before a court or agency or has not acted by the return date, the presentation of testimony and production of of the United States unless the General employee will be directed to appear at documents? Counsel or the OIG Legal Counsel the stated time and place, unless In any proceedings to which this part authorizes the employee’s participation. advised by the General Counsel or the applies, no employee may provide § 1603.6 How will LSC respond to a OIG Legal Counsel that responding to testimony or produce documents subpoena for documents? the subpoena would be inappropriate. concerning information acquired in the (a) Whenever a subpoena The employee will be directed to course of performing official duties or commanding the production of any LSC produce a copy of these regulations and because of the person’s official record has been served upon an respectfully decline to testify or produce relationship with LSC unless authorized employee, the employee shall refer the any documents on the basis of these regulations. by the General Counsel or the OIG Legal subpoena to the General Counsel or the Counsel pursuant to this part based on OIG Legal Counsel, as appropriate. The § 1603.7 When will LSC certify the his determination that compliance with General Counsel or the OIG Legal authenticity of records? the request would promote LSC’s Counsel shall determine whether the Upon request, LSC will certify the objectives. subpoena is legally sufficient, whether authenticity of copies of records that are the subpoena was properly served, and to be disclosed. The requesting party whether the issuing court or other § 1603.4 How does a person request will be responsible for reasonable fees voluntary testimony from an employee? tribunal has jurisdiction over LSC. If the for copying and certification. General Counsel or the OIG Legal (a) All requests for testimony by an Counsel determines that the subpoena § 1603.8 Does this part give individuals employee in his or her official capacity satisfies all three factors, LSC shall any rights? and not subject to the exceptions set comply with the terms of the subpoena This part is intended only to provide forth in § 1603.1(d) of this part must be unless LSC takes affirmative action to a process for receipt and processing of in writing and addressed to the General modify or quash the subpoena in private litigants’ requests for LSC Counsel. accordance with Fed. R. Civ. P. 45 (c). documents and testimony. It does not, (b) All requests for testimony by an (b) If a subpoena commanding the and may not be relied upon, to create a employee of the OIG must be in writing production of any record served upon right or benefit, substantive or and addressed to the OIG Legal Counsel. an employee is determined by the procedural, enforceable at law by a General Counsel or the OIG Legal party against LSC. (c) Requests must state the nature of Counsel to be legally insufficient, the requested testimony, why the improperly served, or from a tribunal Dated: January 25, 2018. information sought is unavailable by not having jurisdiction, LSC shall deem Stefanie K. Davis, any other means, and the reasons why the subpoena a request for records Assistant General Counsel. the testimony would be in the interest under the Freedom of Information Act. [FR Doc. 2018–01731 Filed 1–31–18; 8:45 am] of LSC. LSC shall handle the subpoena pursuant BILLING CODE 7050–01–P

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Reader Aids Federal Register Vol. 83, No. 22 Thursday, February 1, 2018

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING FEBRUARY

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in today’s List of Public enacted public laws. To Laws. subscribe, go to http:// LIST OF PUBLIC LAWS Public Laws Electronic listserv.gsa.gov/archives/ Last List January 31, 2018 Notification Service publaws-l.html (PENS) Note: No public bills which Note: This service is strictly have become law were for E-mail notification of new received by the Office of the PENS is a free electronic mail laws. The text of laws is not Federal Register for inclusion notification service of newly available through this service. PENS cannot respond to specific inquiries sent to this address.

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TABLE OF EFFECTIVE DATES AND TIME PERIODS—FEBRUARY 2018

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