Vol. 85 Tuesday, No. 130 July 7, 2020

Pages 40569–40866

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 85, No. 130

Tuesday, July 7, 2020

Agricultural Marketing Service Mandatory Civil Rights Data Collection, 40628 RULES Revisions to the Federal Seed Act Regulations, 40571– Employee Benefits Security Administration 40584 RULES Conflict of Interest: Agriculture Department Retirement Investment Advice; Court Vacatur, 40589– See Agricultural Marketing Service 40594 PROPOSED RULES Bureau of Safety and Environmental Enforcement Improving Investment Advice for Workers and Retirees, NOTICES 40834–40865 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Energy Department Application for Permit To Modify and Supporting See Federal Energy Regulatory Commission Documentation, 40676–40677 General, 40678–40679 Environmental Protection Agency Open and Nondiscriminatory Access to Oil and Gas RULES Pipelines Under the Outer Continental Shelf Lands Modernizing Ignitable Liquids Determinations, 40594– Act, 40677–40678 40608 Platforms and Structures, 40675–40676 National Emission Standards for Hazardous Air Pollutants: Unitization, 40679–40680 Organic Liquids Distribution (Non-Gasoline) Residual Coast Guard Risk and Technology Review, 40740–40791 PROPOSED RULES PROPOSED RULES Air Quality State Implementation Plans; Approvals and Special Local Regulation: Promulgations: Breton Bay, McIntosh Run, Leonardtown, MD, 40614– Determination of Attainment by the Attainment Date for 40618 the Salt Lake City, Utah and Provo, Utah 2006 24- Ohio River, Owensboro, KY, 40612–40614 Hour PM2.5 Nonattainment Areas; Correction, NOTICES 40618–40619 Meetings: NOTICES National Maritime Security Advisory Committee, 40669– Meetings: 40670 Laminated Products; Formaldehyde Emission Standards Commerce Department for Composite Wood Products; Public Workshop, 40643–40644 See Foreign-Trade Zones Board Request for Information: See International Trade Administration Integrated Science Assessment for Lead, 40641–40643 See National Oceanic and Atmospheric Administration See National Telecommunications and Information Administration Export-Import Bank NOTICES Comptroller of the Currency Requests for Nominations: PROPOSED RULES Advisory Committee, 40644 Activities and Operations of National Banks and Federal Sub-Saharan Africa Advisory Committee, 40644 Savings Associations, 40794–40827 National Bank and Federal Savings Association Digital Federal Aviation Administration Activities, 40827–40831 RULES Airworthiness Directives: Drug Enforcement Administration Bell Textron Inc. (Type Certificate Previously Held by NOTICES Bell Helicopter Textron Inc.) Helicopters, 40584– Importer of Controlled Substances Application: 40586 Lipomed, 40687 General Electric Company Turbofan Engines, 40586– 40588 Education Department Establishment of Class E Airspace: NOTICES Quinter, KS, 40588–40589 Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Agency Information Collection Activities; Proposals, Application for the U.S. Presidential Scholars Program, Submissions, and Approvals: 40628–40629 National Flight Data Center Web Portal, 40730 Coronavirus Aid, Relief, and Economic Security Act Programs; Equitable Services to Students and Federal Communications Commission Teachers in Non-Public Schools, 40627 NOTICES Education Stabilization Fund––Reimagine Workforce Agency Information Collection Activities; Proposals, Preparation Grants, 40626 Submissions, and Approvals, 40644–40645

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Federal Deposit Insurance Corporation Foreign-Trade Zones Board NOTICES NOTICES Termination of Receivership, 40645–40646 Proposed Production Activity: Volflex, Inc., Foreign-Trade Zone 22, Chicago, IL; Federal Energy Regulatory Commission Correction, 40620 NOTICES Agency Information Collection Activities; Proposals, Health and Human Services Department Submissions, and Approvals, 40637–40638 See Food and Drug Administration Combined Filings, 40629–40631, 40633–40641 See Health Resources and Services Administration Initial Market-Based Rate Filings Including Requests for See National Institutes of Health Blanket Section 204 Authorizations: NOTICES Cassadaga Wind, LLC, 40631–40632 Designation of Scarce Materials or Threatened Materials Cimarron Bend Wind Project III, LLC, 40632–40633 Subject to COVID–19 Hoarding Prevention Measures: Priogen Power, LLC, 40633 Change in Information Contact, Removal of Chloroquine Petition for Declaratory Order: Phosphate and Hydroxychloroquine HCl; Correction, CF CVEC Owner One, LLC, 40632 40667–40668 Request for Extension of Time: NEXUS Gas Transmission, LLC, 40640–40641 Health Resources and Services Administration NOTICES Federal Motor Carrier Safety Administration Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Hours of Service of Drivers; Exemption Applications: Sickle Cell Disease Treatment Demonstration Regional Werner Enterprises, 40731–40733 Collaborative Program, 40666–40667 Federal Reserve System Homeland Security Department NOTICES See Coast Guard Agency Information Collection Activities; Proposals, Submissions, and Approvals, 40646–40649 Indian Affairs Bureau Federal Retirement Thrift Investment Board NOTICES RULES Proclaiming Certain Lands as Reservation: Correction of Administrative Errors: Shakopee Mdewakanton Sioux Community of Minnesota, Required Minimum Distributions, 40569–40571 40670–40674 Federal Trade Commission Interior Department NOTICES See Bureau of Safety and Environmental Enforcement Proposed Consent Agreement: See Indian Affairs Bureau Eldorado Resorts and Caesars Entertainment, 40649– See National Park Service 40653 Tri Star Energy, LLC; Analysis of Consent Orders to Aid Internal Revenue Service Public Comment, 40653–40655 PROPOSED RULES Section 42, Low-Income Housing Credit Compliance- Food and Drug Administration Monitoring Regulations, 40610–40612 NOTICES Agency Information Collection Activities; Proposals, International Trade Administration Submissions, and Approvals: NOTICES Examination of Secondary Claim Disclosures and Meetings: Biosimilar Disclosures in Prescription Drug Environmental Technologies Trade Advisory Committee, Promotional Materials, 40659–40662 40620 Generic Clearance for Data To Support Cross-Center Collaboration for Social Behavioral Sciences International Trade Commission Associated With Disease Prevention, Treatment, and NOTICES the Safety, Efficacy, and Usage of Food and Drug Antidumping or Countervailing Duty Investigations, Orders, Administration Regulated Products, 40655–40658 or Reviews: Health Care Providers’ Understanding of Opioid Seamless Refined Copper Pipe and Tube From Vietnam, Analgesic Abuse Deterrent Formulations, 40663– 40680–40681 40666 Standard Steel Welded Wire Mesh From Mexico, 40681– Electronic Study Data Submission: 40682 Data Standards; Support and Requirement Begin for Investigations; Determinations, Modifications, and Rulings, Study Data Tabulation Model Version 1.7 etc.: Implementation Guide 3.3 and for Define-Extensible Certain Chemical Mechanical Planarization Slurries and Markup Language Version 2.1; Requirement Ends for Components Thereof, 40685–40686 Study Data Tabulation Model Version 1.3 Certain Completion Drill Bits and Products Containing Implementation Guide 3.1.3, 40658–40659 the Same, 40686–40687 Request for Notification of Stakeholder Intention To Certain Luxury Vinyl Tile and Components Thereof, Participate: 40683–40685 Prescription Drug User Fee Act; Stakeholder Consultation Certain Nicotine Pouches and Components Thereof and Meetings on the Prescription Drug User Fee Act Methods of Making the Same; Termination, 40682– Reauthorization, 40662–40663 40683

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Justice Department Promoting the Sharing of Supply Chain Security Risk See Drug Enforcement Administration Information Between Government and Communications NOTICES Providers and Suppliers, 40625–40626 Proposed Consent Decree: Resource Conservation and Recovery Act, 40687–40688 Nuclear Regulatory Commission NOTICES Labor Department Applications and Amendments to Facility Operating See Employee Benefits Security Administration Licenses and Combined Licenses Involving Proposed No Significant Hazards: Legal Services Corporation Considerations and Containing Sensitive Unclassified NOTICES Non-Safeguards Information and Order Imposing Legal Services Corporation Financial Guide, 40688 Procedures for Access to Sensitive Unclassified Non- Safeguards Information, 40689–40694 National Aeronautics and Space Administration Guidance: NOTICES Implementation of Changes, Tests, and Experiments, Meetings: 40696–40697 Planetary Science Advisory Committee, 40688–40689 License Termination; Issuance: Passport Systems, Inc., North Billerica, MA, 40695–40696 National Highway Traffic Safety Administration Meetings; Sunshine Act, 40694–40695 NOTICES Agency Information Collection Activities; Proposals, Postal Regulatory Commission Submissions, and Approvals: NOTICES Compliance Labeling of Retroreflective Materials for Inbound Competitive Multi-Service Agreements With Heavy Trailer Conspicuity, 40735–40736 Foreign Postal Operators, 40697–40698 Vehicle Information for the General Public, 40733–40735 New Postal Products, 40698–40699

National Institutes of Health Securities and Exchange Commission NOTICES NOTICES Meetings: Self-Regulatory Organizations; Proposed Rule Changes: National Cancer Institute, 40668 BOX Exchange, LLC, 40709–40713 National Heart, Lung, and Blood Institute, 40668 Financial Industry Regulatory Authority, Inc., 40713– National Institute on Alcohol Abuse and Alcoholism, 40715 40669 Fixed Income Clearing Corp., 40723–40727 New York Stock Exchange, LLC, 40715–40720 National Oceanic and Atmospheric Administration NYSE Arca, Inc., 40699–40709, 40720–40722 RULES Fisheries of the Exclusive Economic Zone Off Alaska: Small Business Administration Sablefish in the Bering Sea Subarea of the Bering Sea and NOTICES Aleutian Islands Management Area, 40609 Disaster Declaration: NOTICES Michigan, 40727 Agency Information Collection Activities; Proposals, Major Disaster Declaration: Submissions, and Approvals: Mississippi, 40727–40728 Dr. Nancy Foster Scholarship Program, 40620–40621 North Carolina, 40728 Northeast Region Observer Providers Requirements, 40623–40624 State Department Endangered and Threatened Species: NOTICES Initiation of a 5-Year Review of the Dusky Sea Snake, Agency Information Collection Activities; Proposals, 40622–40623 Submissions, and Approvals: Meetings: Electronic Medical Examination for Visa or Applicant, Gulf of Mexico Fishery Management Council, 40622 40728–40729 Mid-Atlantic Fishery Management Council, 40621–40622 Medical Examination for Visa or Refugee Applicant, 40729 National Park Service NOTICES Surface Transportation Board National Register of Historic Places: NOTICES Pending Nominations and Related Actions, 40674–40675 Senior Executive Service Performance Review Board and Executive Resources Board Membership, 40729–40730 National Security Commission on Artificial Intelligence NOTICES Tennessee Valley Authority Meetings, 40689 NOTICES Meetings: National Telecommunications and Information Regional Resource Stewardship Council; Webinar, 40730 Administration NOTICES Transportation Department Agency Information Collection Activities; Proposals, See Federal Aviation Administration Submissions, and Approvals: See Federal Motor Carrier Safety Administration Internet Use Survey, 40624–40625 See National Highway Traffic Safety Administration

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Treasury Department Part III See Comptroller of the Currency Treasury Department, Comptroller of the Currency, 40794– See Internal Revenue Service 40831

Veterans Affairs Department NOTICES Part IV Agency Information Collection Activities; Proposals, Labor Department, Employee Benefits Security Submissions, and Approvals: Administration, 40834–40865 Purchase and Contract of Sale, Credit Statement of Prospective Purchaser, 40737 VA-Guaranteed Home Loan Cash-Out Refinance Loan Comparison Disclosure, 40737–40738 Reader Aids Meetings: Consult the Reader Aids section at the end of this issue for National Research Advisory Council, 40736–40737 phone numbers, online resources, finding aids, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents Separate Parts In This Issue electronic mailing list, go to https://public.govdelivery.com/ accounts/USGPOOFR/subscriber/new, enter your e-mail Part II address, then follow the instructions to join, leave, or Environmental Protection Agency, 40740–40791 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.

5 CFR 1605...... 40569 1650...... 40569 1651...... 40569 7 CFR 201...... 40571 202...... 40571 12 CFR Proposed Rules: 7 (2 documents) ...... 40794, 40827 145...... 40794 155...... 40827 160...... 40794 14 CFR 39 (2 documents) ...... 40584, 40586 71...... 40588 26 CFR Proposed Rules: 1...... 40610 29 CFR 2509...... 40589 2510...... 40589 Proposed Rules: 2550...... 40834 33 CFR Proposed Rules: 100 (2 documents) ...... 40612, 40614 40 CFR 63 (2 documents) ...... 40594, 40740 260...... 40594 261...... 40594 278...... 40594 Proposed Rules: 52...... 40618 50 CFR 679...... 40609

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Rules and Regulations Federal Register Vol. 85, No. 130

Tuesday, July 7, 2020

This section of the FEDERAL REGISTER • Facsimile: Comments may be FRTIB is sometimes required to contains regulatory documents having general submitted by facsimile at (202) 942– calculate lost earnings (i.e., breakage) on applicability and legal effect, most of which 1676. errors involving these retired L Funds. are keyed to and codified in the Code of Since March 23, 2020, the FRTIB has Breakage is the loss incurred (negative Federal Regulations, which is published under been operating under a mandatory earnings) or the gain realized (positive 50 titles pursuant to 44 U.S.C. 1510. telework status due to the coronavirus earnings) on late and makeup The Code of Federal Regulations is sold by pandemic which has severely limited contributions. Similarly, the FRTIB the Superintendent of Documents. the ability to timely monitor mail and must sometimes process the removal of facsimiles. Therefore, we strongly erroneous contributions (i.e., a negative encourage using the Federal Rulemaking adjustment) previously made to a now- FEDERAL RETIREMENT THRIFT Portal to submit comments. retired L Fund. The value of a negative INVESTMENT BOARD FOR FURTHER INFORMATION CONTACT: adjustment equals the amount of the Austen Townsend, (202) 864–8647. erroneous contributions plus earnings 5 CFR Parts 1605, 1650 and 1651 (positive or negative) on that amount. SUPPLEMENTARY INFORMATION: The Generally, the FRTIB uses the current FRTIB administers the TSP, which was Correction of Administrative Errors; share price of the applicable investment established by the Federal Employees’ Required Minimum Distributions fund when calculating breakage or the Retirement System Act of 1986 value of a negative adjustment. Because AGENCY: Federal Retirement Thrift (FERSA), Public Law 99–335, 100 Stat. Investment Board. a retired L Fund no longer exists, the 514. The TSP is a tax-deferred FRTIB instead uses a constructed share ACTION: Direct final rule. retirement savings plan for Federal price in order to calculate breakage or civilian employees and members of the the value of negative adjustments on SUMMARY: The Federal Retirement Thrift uniformed services. The TSP is similar errors involving these funds. Investment Board (FRTIB) is amending to cash or deferred arrangements The constructed share price for a its regulations to make a non- established for private-sector employees retired L Fund is calculated using the substantive change to the constructed under section 401(k) of the Internal final posted share price of that L Fund share price formula for a retired Revenue Code (26 U.S.C. 401(k)). (i.e., the share price posted on the date Lifecycle (L) Fund. The FRTIB uses a Lifecycle Funds the L Fund was retired). When the constructed share price to make error constructed share price formula was corrections involving a retired L Fund. In addition to its five core funds (the created, all L Funds were based on a 10- In addition, due to a recent change in G, F, C, S, and I Funds) the TSP offers year asset allocation. Therefore, rather the Internal Revenue Code (Code), the multiple L Funds, each of which is than referring to the L Fund’s final FRTIB is amending its regulations to made up entirely of the five core funds posted share price, the FRTIB’s existing change the age by which TSP in different, professionally determined, regulations provide that the constructed participants must begin receiving proportions based on a particular time share price for a retired Lifecycle fund distributions from their TSP accounts horizon, or target retirement date. Each is calculated using the share price of the from 701⁄2 to 72. L fund is ‘‘retired’’ when it reaches its L Fund on December 31 of its retirement DATES: Effective July 7, 2020. The target date. year. change to the constructed share price Currently, the TSP offers L Funds To account for the fact that L Funds formula is applicable June 30, 2020, based on a 10-year asset allocation. A will no longer be retired on December without further action, unless adverse 10-year L Fund must, by design, be 31st as a result of the shift from 10-year comment is received by August 6, 2020. retired on December 31st of year in to 5-year L Funds, the FRTIB is If adverse comment is received, FRTIB which it reaches its target date. For updating its regulations to remove the will publish a timely withdrawal of the example, the L 2010 reached its target references to December 31st in the rule in the Federal Register. As required date in 2010 and was retired on constructed share price formula. by the Code, the change to the age by December 31, 2010. Instead, consistent with the FRTIB’s which TSP participants must begin Beginning July 1, 2020, the TSP will original intent, the regulations will receiving distributions from their instead offer L Funds based on a 5-year simply refer to the final posted share accounts is effective for distributions asset allocation to give TSP participants price. The substance of the formula required to be made after December 31, a more targeted window of time to remains unchanged. 2019, with respect to individuals who match their intended retirement date with their asset allocation. As a result of Required Minimum Distributions will reach age 701⁄2 after that date. the shift from 10-year to 5-year L Funds, On December 20, 2019, the President ADDRESSES: You may submit comments L Funds beginning with the L 2020 fund signed into law the Setting Every using one of the following methods: will be retired on June 30th of the year Community Up for Retirement • Federal Rulemaking Portal: http:// in which they reach their respective Enhancement (SECURE) Act (Division O www.regulations.gov. Follow the retirement dates. pg. H.R. 1865–604), as part of the instructions for submitting comments. Further Consolidated Appropriations • Mail: Office of General Counsel, Correcting Errors Involving Retired L Act of 2020 (Pub. L. 116–94). The Attn: Megan G. Grumbine, Federal Funds SECURE Act amended the Code to Retirement Thrift Investment Board, 77 Once an L Fund is retired, TSP change the age by which TSP K Street NE, Suite 1000, Washington, participants are no longer able to make participants must begin receiving DC 20002. contributions to that fund. However, the distributions (referred to as required

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minimum distributions (RMDs)) from savings plan created under the Federal ■ 2. Amend § 1605.2 by revising their accounts from 701⁄2 to 72. Employees’ Retirement System Act of paragraph (b)(1)(iii) to read as follows: The RMD rules under the Code, 1986 (FERSA), Public Law 99–335, 100 which apply to both separated TSP Stat. 514, and which is administered by § 1605.2 Calculating, posting, and participants and TSP beneficiary charging breakage on late contributions the Agency. and loan payments. participants,1 set forth the date by which participants must receive RMDs Paperwork Reduction Act * * * * * (i.e., the required beginning date). Prior I certify that this regulation does not (b) * * * to the passage of the SECURE Act, the require additional reporting under the (1) * * * Code required separated TSP criteria of the Paperwork Reduction Act. (iii) Determine the dollar value on the participants to receive RMDs beginning posting date of the number of shares the Unfunded Mandates Reform Act of on April 1 of the year following the year participant would have received had the 1995 in which the participant reached age contributions or loan payments been 701⁄2 and annually thereafter. TSP Pursuant to the Unfunded Mandates made on time. If the contributions or beneficiary participants were required Reform Act of 1995, 2 U.S.C. 602, 632, loan payments would have been to receive RMDs beginning on the later 653, 1501–1571, the effects of this invested in a Lifecycle fund that is of the end of the year following the year regulation on state, local, and tribal retired on the posting date, the in which the participant died, or the governments and the private sector have constructed share price shall equal the end of the year in which the participant been assessed. This regulation will not final posted share price of the retired would have reached age 701⁄2. TSP compel the expenditure in any one year Lifecycle fund, multiplied by the participants who turned 701⁄2 on or of $100 million or more by state, local, current L Income Fund share price, before December 31, 2019 remain and tribal governments, in the aggregate, divided by the L Income Fund share subject to these pre-SECURE Act or by the private sector. Therefore, a price on the same date that the retired required beginning date rules. statement under section 1532 is not Lifecycle fund posted its final share Participants who had not reached age required. price. The dollar value shall be the 701⁄2 before January 1, 2020 are subject number of shares the participant would to the new required beginning date Submission to Congress and the have received had the contributions or rules. Specifically, the Code, as General Accounting Office loan payments been made on time amended by the SECURE Act, requires Pursuant to 5 U.S.C. 810(a)(1)(A), the multiplied by the constructed share a separated TSP participant to receive Agency submitted a report containing price. RMDs beginning on April 1 of the year this rule and other required information * * * * * following the year in which he or she to the U.S. Senate, the U.S. House of ■ 3. Amend § 1605.12 by revising reaches age 72 and is separated from Representatives, and the Comptroller paragraph (c)(2)(ii) to read as follows: service and annually thereafter. TSP General of the United States before beneficiary participants must receive publication of this rule in the Federal § 1605.12 Removal of erroneous RMDs beginning on the later of the end Register. This rule is not a major rule as contributions. of the year following the year in which defined at 5 U.S.C. 804(2). * * * * * the participant died, or the end of the year in which the participant would List of Subjects (c) * * * (2) * * * have reached age 72. 5 CFR Part 1605 The FRTIB is updating its regulations (ii) Multiply the price per share on the by removing the references to age 701⁄2 Claims, Government employees, date the adjustment is posted by the in the definition of ‘‘required beginning Pensions, Retirement. number of shares calculated in paragraph (c)(2)(i) of this section. If the date.’’ The updated regulations will 5 CFR Part 1650 instead define this term by contribution was erroneously incorporating by reference the Code’s Alimony, Claims, Government contributed to a Lifecycle fund that is definition of required beginning date. employees, Pensions, Retirement retired on the date the adjustment is posted, the price per share shall equal This ensures that FRTIB regulations 5 CFR Part 1651 regarding RMDs will always be the final posted share price of the consistent with the Code’s requirements Claims, Government employees, retired Lifecycle fund, multiplied by the so that future amendments on short Pensions, Retirement. current L Income Fund share price, notice may be avoided. divided by the L Income Fund share Ravindra Deo, price on the same date that the retired Regulatory Flexibility Act Executive Director, Federal Retirement Thrift Lifecycle fund posted its final share Investment Board. I certify that this regulation will not price. have a significant economic impact on For the reasons stated in the * * * * * a substantial number of small entities. preamble, the FRTIB amends 5 CFR This regulation will affect Federal chapter VI as follows: PART 1650—METHODS OF employees and members of the WITHDRAWING FUNDS FROM THE uniformed services who participate in PART 1605—CORRECTION OF THRIFT SAVINGS PLAN the Thrift Savings Plan, which is a ADMINISTRATIVE ERRORS Federal defined contribution retirement ■ 4. The authority citation for Part 1650 ■ 1. The authority citation for Part 1605 continues to read as follows: 1 continues to read as follows: A beneficiary participant is a spouse beneficiary Authority: 5 U.S.C. 8351, 8432d, 8434, of a deceased TSP participant who has a TSP Authority: 5 U.S.C. 8351, 8432a, 8432d, beneficiary participant account established in his or 8435, 8474(b)(5) and 8474(c)(1). 8474(b)(5) and (c)(1). Subpart B also issued her name. In the case of a beneficiary participant, ■ the age of the deceased participant is used when under section 1043(b) of Public Law 104– 5. Amend § 1650.1(b) by revising the determining the date by which RMDs must 106, 110 Stat. 186 and section 7202(m)(2) of definition for ‘‘Required beginning commence. Public Law 101–508, 104 Stat. 1388. date’’ to read as follows:

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§ 1650.1 Definitions. clarifies confusing or contradictory revises the definitions of other terms * * * * * language in the existing regulations. The used in the regulations to provide (b) * * * revisions are expected to reduce trade greater clarity for regulated entities. Required beginning date means the burden associated with interstate seed Other revisions in this rule update the required beginning date as defined in commerce and encourage compliance seed labeling, testing, and certification Internal Revenue Code section 401(a)(9) with State and Federal laws. requirements to reflect revised and the regulations and guidance DATES: Effective August 6, 2020. terminology, as well as the evolution of promulgated thereunder. FOR FURTHER INFORMATION CONTACT: industry practices. Finally, this rule * * * * * Ernest Allen, Director, Seed Regulatory makes several revisions of an and Testing Division, Science and administrative nature to correct PART 1651—DEATH BENEFITS Technology Program, AMS, USDA; 801 misspellings and other errors in the Summit Crossing Place, Suite C, regulations. Specific revisions are ■ 6. The authority citation for Part 1651 Gastonia, NC 28054, USA; telephone: described below. continues to read as follows: 704–810–8884; email Ernest.Allen@ Revisions Authority: 5 U.S.C. 8424(d), 8432d, usda.gov. 8432(j), 8433(e), 8435(c)(2), 8474(b)(5) and Nomenclature SUPPLEMENTARY INFORMATION: The FSA 8474(c)(1). (7 U.S.C. 1551–1611) regulates interstate The regulations specify the kinds of ■ 7. Amend § 1651.1(b) by revising the commerce of planting seeds for agricultural and vegetable seed that are definition for ‘‘Required beginning agricultural and gardening purposes. subject to regulation. This rule revises date’’ to read as follows: The FSA requires seeds to meet certain the list of agricultural seed covered by the regulation in § 201.2(h) by adding § 1651.1 Definitions. germination rate, purity, and certification standards. Under the FSA, camelina, radish, and teff to the list. * * * * * seeds must be truthfully labeled with The revisions add radish to the list of (b) * * * specific quality information. As well, seed kinds for which the variety is Required beginning date means the the FSA requires all persons shipping required on the label in § 201.10(a); add required beginning date as defined in agricultural seed in interstate commerce camelina, radish, and teff to the list of Internal Revenue Code section 401(a)(9) to maintain records of seed variety, seed kinds for which sample weights are and the regulations and guidance origin, treatment, germination, and specified in Table 1 to promulgated thereunder. purity. Regulations established under § 201.46(d)(2)(iii); add camelina, radish, * * * * * the FSA (7 CFR part 201) (regulations) and teff to the list of seed kinds for [FR Doc. 2020–13683 Filed 7–2–20; 8:45 am] implement the requirements of the FSA which germination requirements are BILLING CODE 6760–01–P and are administered by the specified in Table 2 to § 201.58(c)(3); Agricultural Marketing Service (AMS). add teff to the list of seed kinds for From time to time, AMS finds it which purity percentage tolerances are DEPARTMENT OF AGRICULTURE necessary to update the regulations to increased in § 201.60(a)(1); and add reflect current industry standards and camelina, chickpea, hemp, radish, and Agricultural Marketing Service practices and to remove obsolete sunn hemp to the list of seed kinds for references. AMS last updated the which standards related to certification 7 CFR Parts 201 and 202 regulations in 2011 (76 FR 31790). AMS are specified in Table 5 to § 201.76. To assure clear market [Doc. No. AMS–ST–19–0039] met with representatives of major seed industry stakeholder organizations in communication about seeds, the RIN 0581–AD91 February 2019 to discuss possible regulations use the Latin scientific names assigned to plants in the Revisions to the Federal Seed Act revisions to make the regulations more reflective of current industry practices International Code of Nomenclature for Regulations 1 and updated testing methods. Based on Cultivated Plants and recognized AGENCY: Agricultural Marketing Service, stakeholder input, the Seed Regulatory throughout the world. Occasionally, the USDA. and Testing Division of AMS’s Science International Union of Biological Science’s International Commission for ACTION: Final rule. and Technology Program initiated this action to update the regulations. the Nomenclature of Cultivated Plants SUMMARY: This final rule revises the AMS published a proposed rule in the revises those scientific names. This rule regulations that implement the Federal Federal Register on January 27, 2020 further revises § 201.2(h) by updating Seed Act (FSA). Revisions are made to (85 FR 4603), describing proposed the scientific names for 15 agricultural seed labeling, testing, and certification revisions and updates to the regulations. seed kinds already on the list (big requirements. The revisions add certain The proposed rule provided a 60-day bluestem, mountain brome, seed species to the lists of covered kinds public comment period ending March buffalograss, crambe, galletagrass, of seed and update the lists to reflect 27, 2020. Seven comments were guineagrass, forage kochia, browntop current scientific nomenclature; update submitted. After considering the millet, pearl millet, napiergrass, green regulations related to seed quality, comments, AMS revised some of the needlegrass, green panicgrass, bird rape, germination and purity standards, and proposals based on those comments. turnip rape, and smilo), and by adding acceptable seed testing methods; and The comments and AMS’s responses are another common name for sunn update seed certification and discussed in detail in the Comments crotalaria, one of the kinds already on recertification requirements, including section later in this document. the list. The rule also updates the new eligibility standards and the This final rule updates the lists of scientific name for tomato, which is on recognition of current breeding seed kinds which are covered by the techniques. This rule aligns FSA regulations and revises the names of 1 The International Code of Nomenclature for Cultivated Plants (ICNCP or Cultivated Plant Code), regulations with current industry several agricultural and vegetable seeds published by the International Society for practices, harmonizes FSA testing to provide updated scientific Horticultural Science. The ICNCP was most methods with industry standards, and nomenclature. This rule further adds or recently updated in 2016.

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the list of vegetable seed kinds in Finally, this rule adds a new species to reflect the current names § 201.2(i). Such changes align regulatory paragraph (oo) to § 201.2 to define the recognized in the market. Where the language with current terminology and term ‘‘brand,’’ which means a name, shipment of noxious-weed seed is not nomenclature recognized in the term, sign, symbol, or design, or a prohibited under § 201.16(b), the rate of industry. combination of them that identifies seed occurrence in agricultural seed cannot Other sections of the regulations as the product of a seller or group of exceed the rate permitted by each State reference scientific names, as well. This sellers and distinguishes that seed from into which the seed is shipped or final rule updates those references by the seed of other sellers. The term’s reshipped, and the label must include revising the scientific names for definition will clarify its use in the rate of occurrence according to each quackgrass in § 201.17(a); buffalograss, § 201.36b(e). State’s requirements. See 7 CFR sunflower, small-seeded legumes, carrot, Records 201.16(a). This rule adds a new and mint in § 201.47a; legumes and § 201.30c that provides similar crucifers in 201.48(a); sunflower, carrot, The FSA regulations require seed restrictions for shipments of noxious- and mint in 201.48(f); buffalograss in shippers to maintain records and weed seed in vegetable seed in 201.48(g)(1); legumes in 201.51(a)(1); samples for each lot of agricultural and containers weighing more than one quackgrass in 201.51(b)(2)(iv) and (v); vegetable seed shipped in interstate pound. This addition supports State sunflower in 201.51(b)(4), and carrot in commerce. Sections 201.4 through laws regarding noxious-weed seed in 201.56(d). 201.7a specify the recordkeeping vegetable seed. requirements related to seed origin, Other Terminology Prior to this rule, § 201.18 specified germination testing, purity testing, and that when agricultural seeds other than Section 201.2 defines other terms treatment. This rule revises § 201.4 to the predominant kind, variety, or type used in the regulations. This rule clarify that complete records about seed named on the label are included, they updates some terms to reflect changes in treatments include records about could be collectively identified as ‘‘crop industry and AMS needs and processes. treatments such as coating, film coating, seeds’’ or ‘‘other crop seeds’’ by This rule revises the term for ‘‘person’’ encrusting, and pelleting treatments. percentage. A change to § 201.18 in § 201.2(b) to include individuals and removes the reference to ‘‘crop seeds’’ to agents to clarify that such entities are Labeling also subject to the regulations. A The FSA requires each container of reduce confusion about what is in the revision to § 201.2(l)(1) clarifies that agricultural and vegetable seed shipped seed. Another labeling change removes each person must keep required records in interstate commerce to be labeled the reference to coating material in regarding seed treatment, including, but with specific information. For § 201.19—Inert matter, since coating not limited to, records about seed agricultural seed, the label must material is excluded by definition in coating, film coating, encrusting, or include, among other things, the name another provision. pelleting. This rule makes of each kind of seed comprising more Under § 201.21, seed labels are corresponding revisions to references to than 5 percent of the contents, and for required to show the percentage of hard ‘‘treatment’’ in § 201.4(b). Revisions to certain kinds of seed, the labels must seed—seed with an impermeable seed § 201.2(p) clarify that seed mixtures show the variety(ies). Prior to this rule, coat that doesn’t absorb water and consist of more than one kind or variety § 201.12a of the regulations required germinate—apart from the agricultural of seed, each present in excess of 5 mixtures of lawn and turf seed to be seed germination percentage. A change percent by weight of the whole, and that labeled as mixtures and required the to § 201.21 requires labels to also show combinations of more than one variety name and percentage of each seed the percentage of dormant seed—seed of a single kind of seed may be referred component to be listed on the label in other than hard seed that fails to to as ‘‘blends.’’ A revision to the the order of predominance. This rule germinate under specified conditions— definition of ‘‘coated seed’’ in § 201.2(q) revises § 201.12a by removing the apart from the germination percentage. clarifies that coated seed is any seed reference to turf and lawn seed This change is necessary to reflect the covered with a coating material, while mixtures, requiring all mixtures of emerging industry practice of labeling new § 201.2(nn) defines ‘‘coating agricultural seed for seeding or planting dormant seed as such and providing the material’’ to mean any substance that purposes to be designated mixtures on percentage of dormant seed on the label. changes the size, shape, or weight of the the label, and requiring the label to list A change to the heading and original seed, and clarifies that each seed component on the label in introductory paragraph of § 201.31 ingredients such as rhizobia, dyes, order of predominance. This rule adds clarifies that the germination standards polymers, biologicals, and pesticides are a similar requirement for labeling for vegetable seeds in interstate not considered coating materials. A vegetable seed mixtures by adding a commerce are minimum standards. revision to the term ‘‘purity’’ in new § 201.26a—Vegetable Seed Prior to this rule, the regulations § 201.2(w) removes the reference to Mixtures, which requires labels for required seed labels to include the full ‘‘crop seed.’’ A revision to § 201.2(x) mixtures of vegetable seeds to list each name and address of the shipper or revises the definition of ‘‘inoculant’’ to seed component in order of consignee, or to show a code that mean a product consisting of predominance. This change reflects the identifies the shipper. Revisions to microorganisms applied to the seed for current market practice of packaging §§ 201.23, 201.24, 201.27, and 201.28 the purpose of enhancing the vegetable seed mixtures, which has not require the labels of both agricultural availability or uptake of plant nutrients previously been addressed in the and vegetable seed to show the full through the root system. Such a change regulations. name and address of the interstate aligns FSA regulations with the current The regulations prohibit the interstate shipper or show both a code identifying Environmental Protection Agency shipment of agricultural seeds the interstate shipper and the full name definition of a plant inoculant,2 which containing seeds or bulblets of certain and address of the consignee. Sections is recognized and used by the industry. noxious weeds identified in § 201.16(b). 201.23 and 201.27 are further revised to This rule revises the list of prohibited define the terms ‘‘shipper’’ and 2 See 40 CFR 152.6(g)(2)—EPA’s definition of noxious weed seed in § 201.16(b) by ‘‘consignee’’ as they pertain to labeling. plant inoculant. updating the scientific names of several AMS intends these changes to reduce

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industry confusion about the labeling how the tolerance for pure live seed is or higher certification class. New requirements. calculated. footnote 61 explains that fields Section 201.31a requires seed labels producing any class of certified seed Certification to include the name or description of must be at least 50 feet from any other any treatment applied to the seed. The regulations require seed variety or from fields of the same variety Paragraph (b) of that section specifies certifying agencies to meet specified that do not meet the varietal purity the names that can be used to identify qualification standards and comply with requirements for certification. New substances used in seed treatments. This procedures outlined in the regulations. footnote 62 pertains to the production of rule revises § 201.31a(b) to clarify that One such procedure provided in sunn hemp and explains that no other active ingredient substances used in § 201.68 requires certifying agencies to varieties of Crotolaria species are seed treatments must be included in the obtain specific information from allowed in Foundation, Registered, and/ label, and that biological active certification applicants. This rule or Certified seed production fields. New ingredients should be identified by their revises the introductory text of § 201.68 footnote 63 explains that producers of brand names or genus and species to clarify that point, as the regulations certified seed of any class for that crop names. have been confusing, making it unclear should refer to the requirements that certifying agencies must request the Seed Testing established by certifying agencies in the specified information. A further revision production States for applicable The regulations specify testing to § 201.68(b) requires entities applying production standards. AMS added these requirements for seed shipped in for certification to supply information footnotes to explain specific standards interstate commerce. Seed testing about the breeding or reproductive for the new crops that were added to the methodology continues to evolve as new stabilization procedures used to develop Table in § 201.76 (camelina, chickpea, equipment and processes are developed. the variety. This change is necessary to hemp, radish, and sunn hemp), but most In addition to the revisions described recognize that breeders use different are generic in nature and could apply to earlier in this document, this rule makes processes to develop new plant other crops in the future, as well. the following revisions to the testing varieties. Section 201.78 provides additional regulations in 7 CFR part 201 to ensure A revision to § 201.70(a) permits certification requirements related to the requirements reflect methods and recertification of seed beyond the pollen control for hybrids of certain procedures that have been adopted in standard two generations past the crops. Paragraph (e) in § 201.78 specifies the industry and by AMS. Foundation seed generation only when the determination of the pollen The rule revises the introductory text neither Foundation nor Registered class production index (PPI) for hybrid of § 201.48 to clarify that pure seed seed are being maintained. Previously, alfalfa. Paragraph (e) in § 201.78 includes all seeds of each kind that are the regulations allowed recertification of provides maximum PPI for various present in excess of 5 percent by weight Certified class seed when no hybrids of Foundation and Certified of the whole. Revisions to § 201.48(g)(3) Foundation seed is being maintained, class seed. This rule revises § 201.78(e) remove references to chewings fescue, even if Registered seed was being to provide greater specificity about red fescue, and orchardgrass from the maintained. This revision prohibits maximum PPI allowances for hybrid list of species for which special purity recertification of Certified class seeds alfalfa that would depend on the testing procedures are provided in when Registered class seed is being production method, parentage, and § 201.51a(b). Corresponding revisions to maintained. Adding this restriction generation of hybrid seed being the Table of Factors to Apply to precludes recertification of Certified analyzed. The industry requested this Multiple Units in § 201.51a(b)(2)(ii) class seed when seed of a higher revision in response to a change in reflect the revisions to § 201.48(g)(3). A certification class is available. AMS production practices for hybrid alfalfa revision to § 201.51a(a) adds more intends such a restriction to prevent seed. AMS expects this revision to precise instructions relating to the recertification of the class of seed most recognize the breadth of hybridization Uniform Blowing Procedure used to likely to have changed over time when methods currently used by different separate pure seed and inert matter for more stable alternatives are available. plant breeders. seed testing, and the revision better Revisions to §§ 201.74 and 201.75 aligns the regulation with AOSA remove the caveat that certified seed Administrative Changes standards. A revision to § 201.58(a) labeling requires the variety name only AMS made several revisions of an clarifies that if the date for a final count if the seed has been certified as to administrative nature to the regulations for germination testing falls on a variety. This change removes to correct typographical errors and weekend or public holiday, the count contradictory or confusing language update addresses and other references to can be taken on the following workday. from the regulations, since all reflect current business practices or A revision to § 201.60(b)(2) corrects a certification is varietal. provide clarity. A revision to § 201.2(a) reference to tolerance determinations for Section 201.76 of the regulations replaces the reference to ‘‘the FSA’’ with ‘‘crop seeds’’ to refer to tolerance establishes production standards for the words ‘‘the Federal Seed Act’’ to determinations for ‘‘other crop seeds.’’ Foundation, Registered, and Certified clarify the meaning of the term ‘‘Act’’ A revision to § 201.61 revises the title of classes of various crop seeds. As well as used throughout the regulations. the table in that section to be adding the five new crop kinds References to the ‘‘Act’’ replace ‘‘Fluorescence Tolerance, Based on Test mentioned earlier in the Terminology references to the ‘‘act’’ throughout the Fluorescence (TFL)’’ to clarify that the section, this rule adds four explanatory regulations, and minor misspellings ryegrass fluorescence tolerances shown footnotes to the chart of production have been corrected in several sections. for 400-seed fluorescence tests are based standards in § 201.76. New footnote 60 A revision to § 201.51a(a)(3) updates the on the test fluorescence level (TFL) explains that land on which certain seed address for obtaining calibration calculated under § 201.58a. is grown for certification must not have samples and instructions from the Seed This rule clarifies § 201.64—Pure live been planted in cruciferous crops Regulatory and Testing Division to its seed by clarifying that dormant seed is during the previous five years, or for the current address in Gastonia, North considered in the calculation and by previous three years if the previous crop Carolina. A revision to the entries for adding a mathematical formula to show was of the same variety and of the same ‘‘Oat’’ and ‘‘Brussels Sprouts’’ in Table

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2 to paragraph (c)(3) in § 201.58 moves commenter suggested that coating considered inert material. Any coating the additional germination directions material be defined as any substance material adhering to the seed after it is for fresh and dormant seed into the intended to change the seed’s size, washed during the testing process is correct table column. Finally, AMS shape, or weight, excluding certain considered part of the seed. revised the headings for Parts 201 and specified ingredients, including Accordingly, AMS is revising the 202 to remove an undesignated center polymers and biologicals, thus retaining proposed language for § 201.2(w) by heading in Part 201 that is no longer the proposed language, but including it removing the reference to ‘‘coating needed. These changes replace in a separate definition. The commenter material, if any is present’’ when references to the terms ‘‘Rules’’ or pointed out that coating material is determining the percentage of inert ‘‘Regulations’’ with terms that comply referenced in several other provisions of matter, and by making no changes to the with Code of Federal Regulations the regulations. Thus, defining the term current language of § 201.19, based on nomenclature conventions. would help clarify those provisions. comments. AMS response: AMS agrees that Comment: AMS proposed to add the Comments because coating material is referenced term acceptable to §§ 201.6— AMS received seven comments on the elsewhere in the regulation and is not Germination and 201.7—Purity to proposed rule. One comment from an currently defined, it makes sense to split clarify for regulated entities the kinds of individual supports the proposed the proposed definition of coated seed tests related to seed germination and updates to scientific nomenclature and into two definitions for greater clarity. purity for which records must be kept. to the standards relating to seed quality. Accordingly, AMS is revising the AMS proposed also to add a new The commenter wrote that the proposed proposed language for § 201.2(q)— definition—Acceptable test—to the changes are likely to help buyers obtain Coated Seed and adding a new regulations to mean testing according to quality seed. Four comments from § 201.2(nn)—Coating Material, based on methods provided in the FSA individuals expressed neither support the comment. AMS does not agree with regulations or according to the rules of nor opposition to the proposed rule, but the commenter’s proposal that material the Association of Official Seed addressed topics unrelated to this only be considered coating material if it Analysts (AOSA). Finally, AMS rulemaking. For example, comments is intended to change a seed’s size, proposed to replace the reference to advocated the production and use of shape, or weight. Regardless of intent, if ‘‘analyses, tests, and examinations’’ home-grown and patient-grown Aloe a substance changes the size, shape, or with a reference to ‘‘acceptable tests’’ in vera products in veterans’ hospitals and weight of the original seed and is not § 201.2(l)(1), which defines the term the reduction of tariffs and restrictions one of the excluded materials, it is Complete record. One comment on seed trade so people everywhere considered coating material. opposed adding the definition for could have access to vital seeds. Comment: Section 201.2(w) of the Acceptable test, as well as adding the Accordingly, AMS is making no changes regulations requires the inclusion of the term acceptable to recordkeeping to the rule as proposed based on these names and percentages of other requirements in §§ 201.6 and 201.7, comments. materials in the seed, such as crop seed saying that AOSA rules don’t allow the Two comments were submitted by and inert matter, when describing the use of tetrazolium (TZ) testing, which is seed trade industry associations. Both purity of seed. AMS proposed revising important to the reclamation seed comments support the proposals § 201.2(w) by removing the reference to business. According to the commenter, generally. One commenter expressed crop seed and by specifying that inert the U.S. Bureau of Land Management support for the proposed changes in matter includes coating material, if any (BLM) is the industry’s largest single sections not directly dealing with seed is present. A commenter agreed with purchaser of native seed, and BLM uses certification, saying that the sections removing the reference to crop seed, as TZ tests to verify purchases of native dealing with shipping, labeling, and it is redundant to agricultural seed, seed before the seed is distributed for seed testing are closely related and which is specified in the regulation. The reclamation projects. important to seed certification activities. commenter opposed adding the AMS response: The current Both commenters suggested revisions to specification that inert matter includes regulations do not specify which testing certain proposals. One commenter noted coating material, if any is present, rules can be followed to determine seed generally that AMS’s proposals seemed because inert matter is already defined germination and purity. AMS’s proposal intended to align the requirements for as including coating material if any is was intended to standardize testing by vegetable seed more closely with those present in § 201.51(c)(3). naming two conventions that would be for agricultural seed and that in some AMS further proposed to revise the considered acceptable, but realizes the cases, that wouldn’t be appropriate. current definition of inert matter in proposal would not provide adequate Both commenters’ specific concerns are § 201.19 to specify that inert matter flexibility to the industry. Accordingly, summarized and addressed below. includes coating material, if any is based on the comments, AMS is not Comment: Section 201.2(q) of the present. The commenter also opposed adding a new definition for Acceptable regulations defines coated seed as seed this proposed revision, again citing test, as proposed, and is not adding the coated with any substance that changes § 201.51(c)(3), and saying that the term acceptable test to the language in the seed’s size, shape, or weight, addition of this language would create §§ 201.6 and 201.7, based on the excluding certain specified coating unintended negative consequences for comment. To conform with these material ingredients. AMS proposed to the industry, but not explaining what revisions to the proposed language, add polymers and biologicals to the list those would be. AMS removed the proposed reference to of excluded coating materials AMS response: AMS agrees that it is acceptable test in § 201.2(l)(1), even ingredients. One comment agreed with not necessary to include the phrase though the commenter did not address the addition of polymers and biologicals ‘‘and coating material, if any is present,’’ that reference in the comment. to the list, but suggested further revising which was proposed as a clarification to Comment: The term brand appears in the proposed language by specifying the definitions of purity and inert various provisions of the regulations, that coated seed is any seed coated with matter. As described in § 201.51(c)(3), but it is not defined. AMS proposed to coating material and adding a second coating material that has been washed define brand to mean word(s), name, definition for coating material. The from seed but is still present is symbol, number, mark, design, unique

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design, or any combination of those label (Quick Response or QR code) identify the shipper. Further, if a code— which distinguishes the seed of one affixed to the container. The commenter rather than the full name and address— entity from the seed of another. One asserted that the technology is widely is used to identify the shipper, the label commenter supported addition of the used in other industries and readily must include the consignee’s full name new definition, but opposed the phrase available. and address. Finally, the revised ‘‘distinguishes the seed of one entity AMS response: AMS acknowledges provisions include definitions of the from the seed of another.’’ The that many products now include QR terms shipper and consignee as used in commenter wrote that incorporating the codes on labels to provide consumers those sections to clarify their meaning. word ‘‘entity’’ in the definition might be with additional product information. Comment: AMS proposed to revise too confusing. The commenter However, we do not believe the § 201.29 to clarify that the germination recommended rewording the proposed technology is widely enough available of vegetable seed in containers of one definition of brand to mean word(s), to trust that all consumers will have pound or less should be expressed as a name, symbol, number, mark, design, access to the required label information. percentage on the label. AMS further unique design, or any combination of As provided in the regulation, seed proposed to revise §§ 201.29, 201.29a, those which identifies the product. labelers may include QR codes to 201.30, and 201.63 to provide that seed AMS response: AMS agrees that a convey additional product information, labels should show the amounts of brand should identify a seed product, but the required label information must dormant seed in containers of seed as but also believes a brand should still be printed and attached to the seed separate from the germination distinguish between sellers. To address container as specified in the regulation. percentage. AMS also proposed a the commenter’s concern about use of Accordingly, AMS made no changes to revision to § 201.31 that would clarify the word ‘‘entity,’’ AMS referenced the the regulation based on the comment. that minimum germination standards definition of brand used by the Comment: Currently, the regulations for vegetable seeds in interstate American Marketing Association require seed labels to include the full commerce would be construed to (AMA). AMA’s definition is similar to name and address of either the shipper include hard seed and dormant seed. what was originally proposed by AMS or the consignee (the entity buying or Currently, only the amount of hard seed and provides for both identification of receiving the shipment). If the shipper’s is shown on labels, and the germination seed as requested by the commenter and full name and address are not provided, standards for vegetable seed in interstate differentiation of seed of different the label must show an AMS-approved commerce are construed to include hard sellers. Accordingly, in response to the code that identifies the shipper, and the seed. One comment agreed with the comment, AMS revised the proposed consignee’s full name and address must clarification about expressing definition of brand to mean a name, also appear on the label. AMS proposed germination by percentage, but opposed term, sign, symbol, design, or any to revise §§ 201.23, 201.24, 201.27, and the requirement to account for dormant combination of them intended to 201.28 to clarify the labeling seed. According to the commenter, identify the seed of one seller or group requirements for both agricultural and vegetable seeds are sold by count rather of sellers and to differentiate that seed vegetable seed. AMS proposed to clarify than weight, which should be from the seed of other sellers. that labeling requirements pertain to considered when determining container Comment: AMS proposed to add interstate shipments and that if the percentages. The commenter explained radish to the list of agricultural seeds shipper is identified only by a code, the further that AOSA rules do not include that must be labeled as to variety under consignee’s full information must testing procedures for dormant seed, § 201.10(a). One commenter supported appear on the label. The proposals were making compliance with the the proposal and recommended that intended to reduce industry confusion requirement burdensome for the chicory, collards, and kale also be added about the labeling requirements. One industry. because they, too, are included in seed commenter requested that AMS revise AMS response: Label information mixtures used as cover crops. the proposed language by replacing the about the germination and amount of AMS response: AMS understands that word ‘‘shipper’’ with ‘‘consignor,’’ and hard seed is expressed as percentages on chicory, collards, and kale may be by clarifying that label requirements are the label, regardless of the way seed is included in cover crop seed mixtures. for the seed package. The commenter sold. Accordingly, AMS is making no However, revising the proposed further requested that consignee change to the proposed addition of the regulations to add those crops would information not be required because it word ‘‘percentage’’ to the language in require further notice and opportunity would be impossible to know the final § 201.29 based on the comment. Further, to comment. AMS may make such a destination of every seed package. AMS recognizes that compliance with proposal in the future. At this time, AMS response: AMS agrees that the proposed requirement to account for AMS is making no changes to the revisions to §§ 201.23, 201.24, 201.27, dormant seed could be burdensome for proposed rule based on the comment. and 201.28 should alleviate confusion some segments of the seed industry, Comment: Section 201.8 of the about the label requirements. AMS because not all testing conventions regulations specify, among other things, agrees also that the regulations should require testing for dormant seed. that the required information on the specify that labeling requirements Accordingly, AMS changed the seed label can be in any form that is pertain to consumer packages or language as proposed by removing the clearly legible and may be on a tag containers of seed. AMS believes the requirement to show the amount of securely attached to the container or commenter is confused about the use of dormant seed on labels in §§ 201.29, printed in a conspicuous manner on the the term consignee in the regulation. 201.29a, and 201.30, and by removing side or top of the container. The label Accordingly, AMS revised the proposed the proposed reference to dormant seed may also contain information in language to better clarify labeling in § 201.63, based on the comment. addition to that required by the Act, requirements for agricultural and Finally, AMS removed the proposed provided such information is not vegetable seed, based on the comment. reference to dormant seed in the revised misleading. One commenter suggested The revisions clarify that labels for language for § 201.31 to conform with that § 201.8 be revised to provide that containers or packages of seed must other revisions, even though the label information could be conveyed contain the shipper’s full name and commenter did not address that section through a machine-readable optical address or an AMS designated code to in the comment.

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Comment: AMS proposed to revise insufficient to meet demand. The obsolete and did not reflect modern § 201.31a(b) to clarify that the name of commenter added that the proposed business and industry practices. AMS any active ingredient substance used to changes add clarity and expressed believes making these revisions best treat seed must be included on the label. support for the proposal. serve the industry by aligning seed AMS further proposed to include AMS response: AMS agrees that this species references with internationally examples of genus and species names proposal gives the industry added recognized scientific names, clarifying for brand-named biologicals that might ability to produce desired seed varieties processes to simplify regulatory be used to identify active ingredient in case of higher demand or emergency. compliance, and improving AMS’s substances on labels. One commenter Accordingly, AMS made no changes to customer service. AMS does not expect agreed with the clarification that the the proposal based on the comment. this rule to provide any environmental, names of active ingredient substances Comment: Section 201.76 of the public health, or safety benefits. must be included on labels, but opposed regulations establishes production This rule does not meet the criteria of listing specific examples because standards for Foundation, Registered, a significant regulatory action under products constantly evolve, and the and Certified classes of various crop proposed examples would be out of date seeds. As well as adding the five new Executive Order 12866 as supplemented in a short time. crop kinds mentioned earlier in the by Executive Order 13563. Therefore, AMS response: AMS agrees that the Terminology section, AMS proposed to the Office of Management and Budget listed examples are likely to be obsolete add four explanatory footnotes to the (OMB) has not reviewed this rule under in a short time. Accordingly, we revised chart of production standards in those Orders. Because this rule does not the proposed language for § 201.31a(b) § 201.76. One comment supported the meet the criteria of a significant by removing the genus and species addition of the footnotes. regulatory action, it does not trigger the name examples. AMS response: Each of the newly requirements in Executive Order 13771. Comment: AMS proposed to revise added crops requires unique growing See OMB’s Memorandum titled § 201.68 to clarify that when the conditions. The footnotes provide ‘‘Interim Guidance Implementing developer or owner of a variety requests specific standards for the production, Section 2 of the Executive Order of certification of that variety, the protection, and quality maintenance for January 30, 2017, titled ‘Reducing certifying agency must request certain certified classes of crop seed. Regulation and Controlling Regulatory information, including a statement Accordingly, AMS made no changes to Costs’’’ (February 2, 2017). concerning the variety’s origin and the the proposal based on the comment. AMS does not expect the revisions to breeding technique or reproductive Comment: AMS proposed to revise impact compliance costs for the private stabilization procedures used in its § 201.78(e) to provide greater specificity sector because the industry has already development. Two commenters about maximum pollen production adopted the practices reflected by the supported the proposal in general, but index (PPI) allowances for hybrid alfalfa regulatory changes in order to comply opposed requiring the developer to state that would depend on the production with State laws. AMS expects seed what breeding technique was used. One method, parentage, and generation of industry stakeholders to benefit from of those commenters explained that hybrid seed being analyzed. One the references to updated scientific when the industry met with AMS in comment supported the proposed nomenclature, which provides a revision. early 2019 as described earlier in this common language for marketing seed. AMS response: AMS’s proposal document, the subject was discussed in Likewise, AMS expects updating the light of situations where new varieties reflects evolving trends in hybrid alfalfa production for certification. labeling, testing, and certification were selected from among natural requirements to simplify compliance mutations rather than intentionally Accordingly, AMS made no changes to the proposal based on the comment. and facilitate the interstate marketing of developed. Both commenters agreed seed. AMS also expects stakeholders to that requiring variety developers to Rulemaking Analyses benefit from streamlined AMS business reveal breeding techniques would practices. negatively impact plant breeding Executive Orders 12866, 13563, and innovations. One commenter asserted 13771 Regulatory Flexibility Act further that removing the word AMS is issuing this final rule in Pursuant to requirements set forth in ‘‘technique’’ from the proposed conformance with Executive Orders the Regulatory Flexibility Act (RFA) (5 language would not have a negative 12866 and 13563, which direct agencies U.S.C. 601 et seq.), AMS has considered impact on the review process. to assess all costs and benefits of AMS response: AMS agrees that available regulatory alternatives and, if the economic impact of this action on requiring developers to reveal breeding regulations are necessary, to select small business entities. The affected techniques could negatively impact regulatory approaches that maximize industry falls under the North American plant breeding and innovation. net benefits (including potential Industry Classification System (NAICS) Accordingly, we removed the word economic, environmental, public health as code 54171—Research and ‘‘technique’’ from the proposed and safety effects, distributive impacts, development in the physical, language for § 201.68, based on the and equity). Executive Order 13563 engineering, and life sciences. This comment. emphasizes the importance of classification includes firms that are not Comment: AMS proposed a revision quantifying both costs and benefits, plant breeders/plant research; however, to § 201.70(a) that would permit reducing costs, harmonizing rules, and no detailed industry data was available recertification of seed beyond the promoting flexibility. for the analysis. standard two generations past the In the development of this rule, AMS Table 1 shows the most recent Foundation seed generation only when considered alternatives, including descriptive data for the industry, neither Foundation nor Registered class updating only the list of regulated seed obtained from the County Business seed is being maintained. One varieties or making no changes at all. Pattern 2016 survey. This data set commenter wrote that this section of the Ultimately, AMS rejected those provides information on the number of regulations is especially important in alternatives because many references establishments, number of employees cases where supplies of parent seed are and processes in the regulations were and total annual payroll.

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TABLE 1—NUMBER OF ESTABLISHMENTS, REVENUE AND PAYROLL BY EMPLOYEE COUNT, NAICS CODE 54171, 2016 COUNTY BUSINESS PATTERNS 3

Number of Number of paid Annual payroll establishments employees ($1,000)

All establishments ...... 17,292 695,810 $82,865,611

The SmallBusiness Administration establishment, and the County Business small (<1,000 employees) and large (SBA) determines firm size for this Patterns data are compiled on an (1,000 or more employees) firms in this industry by number of employees, but establishment rather than a firm basis, industry, according to SBA’s guidance.4 on a per firm basis, with small firms we must use the Economic Census data The data are from the 2002 Economic defined as having fewer than 1,000 to determine the number of small and Census, with monetary values converted employees and 1,000 or more employees large firms for the industry. to 2016 dollars. More recent Economic per firm classified as large. Because Table 2 shows the most recent data Census data is not available at this level firms may own more than one available on the breakdown between of detail for this industry.

TABLE 2—NUMBER OF FIRMS AND ESTABLISHMENTS, REVENUE AND PAYROLL BY EMPLOYEE COUNT, NAICS CODE 54171, 2002 ECONOMIC CENSUS 5

Number of Number of Number of paid Revenue * Annual payroll * Size of firm by number of employees firms establishments employees ($1,000) ($1,000)

Small—Firms with fewer than 1,000 employees ...... 10,200 11,753 273,601 $49,702,793 $24,780,487 Large—Firms with 1,000 employees or more ...... 79 1,380 283,816 30,095,258 27,776,903

All firms ...... 10,279 13,133 557,417 79,798,051 52,557,389 * Adjusted to 2016 values.

The 2002 EconomicCensus reported As a result of meeting with This will reduce the number of that fewer than one percent of firms representatives of major seed industry component separations for those species were considered large (79 of 10,279 stakeholder organizations in February from five to four. Cost savings are firms, or 0.54 percent). The 10,279 firms 2019, AMS is updating regulations to difficult to estimate. Information on the at that time owned a total of 13,133 reflect current industry standards and exact costs of the tests was difficult to establishments, with 1,380 (nearly 11 practices and to remove obsolete obtain because of the variability in seed percent) of these facilities owned by the references. The revisions to the existing testing fees by third-party labs. Costs for 79 large firms. FSA regulations do the following: these tests are generally based on hourly 1. Update the lists of seed kinds laboratory charges and can range The tables show the extent of growth which are covered by the regulations in the industry over time. The number between $10 and $50 per test. Without and revise the names of several data on the breakdown of cost for each of establishments has grown from agricultural and vegetable seeds to 13,133 in 2002 to 17,292 in 2016 (32 of the separations performed in the test, provide updated scientific it is assumed testing costs for the three percent, or 2.3 percent per year). Total nomenclature; employment increased from 557,417 affected crops could fall by 20 percent 2. Revise the definitions of other as a result of the proposed revisions. workers to 695,810 (25 percent, or 1.8 terms used in the regulations to provide percent per year), and total annual greater clarity for regulated entities; The revisions ease the requirement to payroll from $52,557,389 to $82,865,611 3. Update the seed labeling, testing, follow test procedures according to the (58 percent or 4 percent per year). These and certification requirements to reflect Federal Seed Act before engaging in figures indicate that the industry has revised terminology and industry interstate commerce by allowing the use seen small to moderate growth, with a practices; and of seed testing methods from more highly paid work force over time. 4. Correct misspellings and other Association of Official Seed Analysts There do not appear to be significant errors in the regulations. Rules used by most seed testing changes in the structure of the industry Most of the revisions listed above (1, laboratories in the U.S. These revisions between 2002 and 2016. AMS expects 2, and 4) are changes in the regulations also expand the time requirement of the that the size distribution of the firms that would not impact costs to the current regulation by allowing testing to affected by these revisions is consistent private sector. The third revision listed be completed only on laboratory with data reported in the 2002 above is expected to lower the costs of workdays, which effectively Economic Census. Therefore, affected seed testing for three grass species. The acknowledges the existence of firms would mostly be considered small revisions will eliminate the requirement weekends and holidays, eliminating the business entities under the criteria to segregate certain components of seed need for staff to work or reschedule established by SBA (13 CFR 121.201). in purity testing for those three species. completion dates.

3 Geography Area Series: County Business System Codes’’, Small Business Administration, factfinder.census.gov/faces/tableservices/jsf/pages/ Patterns by Employment Size Class, 2016 Business effective January 1, 2017, https://www.sba.gov/sites/ productview.xhtml?pid=ECN_2002_US_ _ _ Patterns, https://factfinder.census.gov/faces/ default/files/files/Size Standards Table.pdf. 54SSSZ5&prodType=table. tableservices/jsf/pages/productview.xhtml?pid=BP_ 5 Professional, Scientific, and Technical Services: 2016_00A3&prodType=table. Subject Series—Establishment and Firm Size: 4 ‘‘Table of Small Business Size Standards Employment Size of Firms for the United States: Matched to North American Industry Classification 2002 Economic Census of the United States, https://

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The burden of labeling radishes is administrative procedures that must be gerardi Vitman’’, ‘‘Brome, mountain— also expected to fall, as it was not exhausted prior to judicial challenge to Bromus carinatus var. marginatus previously considered agricultural seed the provisions of this final rule. (Steud.) Barworth & Anderton’’, under the Federal Seed Act. Radishes ‘‘Buffalograss—Bouteloua dactyloides List of Subjects were previously considered only as a (Nutt.) Columbus’’, ‘‘Camelina— vegetable crop and had to be labeled by 7 CFR Part 201 Camelina sativa (L.) Crantz subsp. variety. Inclusion of radishes as Certified seed, Definitions, sativa’’, ‘‘Crambe—Crambe hispanica L. agricultural seed under the Act will Inspections, Labeling, Purity analysis, subsp. abyssinica’’, ‘‘Crotalaria, sunn or allow the industry to exclude varieties Sampling. sunn hemp—Crotalaria juncea L.’’, in labeling agricultural radish seed. ‘‘Galletagrass—Pleuraphis jamesii This rule reduces the trade burden 7 CFR Part 202 Torr.’’, ‘‘Guineagrass—Megathyrsus associated with interstate seed Administrative practice and maximus (Jacq.) B.K. Simon & S.W.L. commerce and encourages compliance procedure, Agricultural commodities, Jacobs’’, ‘‘Kochia, forage—Bassia with State and Federal laws. AMS has Imports, Labeling, Seeds, Vegetables. prostrata (L.) A.J. Scott’’, ‘‘Millet, determined that this action would not For the reasons set forth in the browntop—Urochloa ramose (L.) T.Q. have a significant negative economic preamble, 7 CFR parts 201 and 202 are Nguyen’’, ‘‘Millet, pearl—Cenchrus impact on a substantial number of these amended as follows: americanus (L.) Morrone’’, small business entities. ‘‘Napiergrass—Cenchrus purpureus (Schumach,) Morrone’’, ‘‘Needlegrass, Paperwork Reduction Act PART 201—FEDERAL SEED ACT REQUIREMENTS green—Nassella viridula (Trin.) In accordance with the Paperwork Barkworth’’, ‘‘Panicgrass, green— Reduction Act of 1995 (44 U.S.C. ■ 1. The authority citation for part 201 Megathyrsus maximus (Jacq.) B.K. Chapter 35), the information continues to read as follows: Simon & S.W.L. Jacobs’’, ‘‘Radish— requirements under the regulations have Authority: 7 U.S.C. 1592. Raphanus sativus L.’’, ‘‘Rape, bird— been approved previously by OMB and Brassica rapa L. subsp. oleifera’’, ‘‘Rape, ■ 2. In part 201, revise the heading to assigned OMB No. 0581–0026. No turnip—Brassica rapa L. Subsp. read as set forth above. changes are necessary in those oleifera’’, ‘‘Smilo—Oloptum miliaceum ■ requirements as a result of this action. 3. Remove the undesignated center (L.) Ro¨ser & Hamasha’’, and ‘‘Teff— Reports and forms are periodically heading ‘‘RULES AND REGULATIONS Eragrostis tef (Zuccangi) Trotter’’; reviewed to reduce information OF THE SECRETARY OF ■ d. In paragraph (i), removing the term requirements and duplication by AGRICULTURE’’. ‘‘Tomato—Lycopersicon esculentum industry and public sector agencies. § 201.2 [Amended] Mill.’’ and adding in its place the term Should any changes become necessary, ■ ‘‘Tomato—Solanum lycopersicum L.’’; they would be submitted to OMB for 4. Amend § 201.2 by: ■ e. In paragraph (j), removing the word ■ a. In paragraph (a), removing the word approval. ‘‘act’’ and replacing it with the word ‘‘FSA’’ and adding in its place the Congressional Review Act ‘‘Act’’; words ‘‘Federal Seed Act’’; ■ ■ b. In paragraph (b), removing the f. In paragraph (l)(1) in the first Pursuant to the Congressional Review sentence after each use of the word Act (5 U.S.C. 801 et seq.), the Office of words ‘‘a partnership’’ and adding in their place the words ‘‘an individual ‘‘treatment’’ adding the words Information and Regulatory Affairs ‘‘(including but not limited to coating, designated this rule as not a major rule partnership’’ and removing the words ‘‘or trustee’’ and adding in their place film coating, encrusting, or pelleting)’’; as defined by 5 U.S.C. 804(2). ■ g. In the second sentence of paragraph the words ‘‘trustee, or agent’’; E-Government Act ■ c. In paragraph (h): (l)(1), removing the word ‘‘treatment’’ and adding in its place the words USDA is committed to complying ■ i. Removing the terms ‘‘Bluestem, big—Andropogon gerardii Vitman’’, ‘‘chemical or biological treatment’’. with the E-Government Act (44 U.S.C. ■ ‘‘Brome, mountain—Bromus marginatus h. Revising paragraphs (p) and (q); 3601, et seq.) by promoting the use of ■ i. In paragraph (w), removing the the internet and other information Steud.’’, ‘‘Buffalograss—Buchloe dactyloides (Nutt.) Engelm.’’, words ‘‘or crop seed’’; technologies to provide increased ■ j. In paragraph (x), removing the opportunities for citizen access to ‘‘Crambe—Crambe abyssinica R.E. Fr.’’, ‘‘Crotalaria, sunn—Crotalaria juncea words ‘‘commercial preparation Government information and services, containing nitrogen fixing bacteria and for other purposes. L.’’, ‘‘Galletagrass—Hilaria jamesii (Torr.) Benth.’’, ‘‘Guineagrass—Panicum applied to seed’’ and adding in their Executive Order 13175 maximum Jacq. var. maximum’’, place the words ‘‘product consisting of microorganisms applied to the seed for This action has been reviewed in ‘‘Kochia, forage—Kochia prostrata (L.) the purpose of enhancing the accordance with the requirements of Schrad.’’, ‘‘Millet, browntop— availability or uptake of plant nutrients Executive Order 13175—Consultation Brachiaria ramosa (L.) Stapf’’, ‘‘Millet, through the root system’’; and Coordination with Indian Tribal pearl—Pennisetum glaucum (L.) R. Br.’’, ■ k. In paragraph (z), removing the word Governments. The review reveals that ‘‘Napiergrass—Pennisetum purpureum ‘‘act’’ and adding in its place the word this regulation would not have Schumach.’’, ‘‘Needlegrass, green— ‘‘Act’’; substantial and direct impacts on Tribal Stipa viridula Trin.’’, ‘‘Panicgrass, ■ l. In paragraph (mm), removing the governments or significant Tribal green—Panicum maximum Jacq.’’, word ‘‘detasselling’’ and adding in its implications. ‘‘Rape, bird—Brassica rapa L. subsp. place the word ‘‘detasseling’’; and campestris (L.) A.R. Clapham’’, ‘‘Rape, ■ Executive Order 12988 turnip—Brassica rapa L. subsp. m. Adding paragraphs (nn) and (oo). This rule has been reviewed under campestris (L.)’’, and ‘‘Smilo— The revision and additions read as Executive Order 12988, Civil Justice Piptatherum miliaceum (L.) Coss’’; follows: Reform. It is not intended to have ■ ii. Adding in alphabetical order the * * * * * retroactive effect. There are no terms ‘‘Bluestem, big—Andropogon (h) * * *:

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Bluestem, big—Andropogon gerardi that changes the size, shape, or weight and ‘‘Rubus fruticosus L. (complex)’’; Vitman of the original seed. Ingredients such as and * * * * * rhizobia, dyes, polymers, biologicals, ■ ii. Adding in alphabetical order the Brome, mountain—Bromus carinatus and pesticides are not coating material terms ‘‘Cenchrus caudatus (Schrad.) var. marginatus (Steud.) Barworth & for purposes of this part. Kuntze’’, ‘‘Cenchrus clandestinus Anderton (oo) Brand. The term ‘‘brand’’ means Morrone’’, ‘‘Cenchrus pedicellatus * * * * * a name, term, sign, symbol, or design, or (Trin.) Morrone’’, ‘‘Cenchrus Buffalograss—Bouteloua dactyloides a combination of them that identifies polystachios (L.) Morrone’’, ‘‘Dinebra (Nutt.) Columbus the seed of one seller or group of sellers chinensis (L.)P. M. Peterson & N. and differentiates that seed from the Snow’’, ‘‘Rubus plicatus Weihe & Nees’’, * * * * * Camelina—Camelina sativa (L.) Crantz seed of other sellers. ‘‘Rumex hypogaeus T.M. Schust & subsp. sativa ■ 5. Revise § 201.3 to read as follows: Reveal’’, and ‘‘Rumex spinosus L.’’. The additions read as follows: * * * * * § 201.3 Administrator. Crambe—Crambe hispanica L. subsp. The Administrator of the Agricultural § 201.16 Noxious-weeds seeds Abyssinica Marketing Service may perform such * * * * * * * * * * duties as the Secretary requires in (b) * * * Crotalaria, sunn or sunn hemp— enforcing the provisions of the Act and Cenchrus caudatus (Schrad.) Kuntze Crotalaria juncea L. of the regulations in this part. Cenchrus clandestinus Morrone * * * * * Cenchrus pedicellatus (Trin.) Morrone Galletagrass—Pleuraphis jamesii Torr. § 201.4 [Amended] Cenchrus polystachios (L.) Morrone * * * * * ■ 6. Amend § 201.4 by: * * * * * Guineagrass—Megathyrsus maximus ■ a. In paragraph (a), removing the word Dinebra chinensis (L.) P. M. Peterson & (Jacq.) B. K. Simon & S. W. L. Jacobs ‘‘act’’ and adding in its place the word N. Snow * * * * * ‘‘Act’’; and * * * * * Kochia, forage—Bassia prostrata (L.) A. ■ b. In paragraph (b) after the word Rubus plicatus Weihe & Nees J. Scott ‘‘treatment’’ wherever it appears adding Rumex hypogaeus T.M. Schust & Reveal * * * * * the words ‘‘(including, but not limited Rumex spinosus L. Millet, browntop—Urochloa ramosa (L.) to, coating, film coating, encrusting, or * * * * * T. Q. Nguyen pelleting)’’ and removing the word ‘‘act’’ * * * * * and adding in its place the word ‘‘Act’’. § 201.17 [Amended] Millet, pearl—Cenchrus americanus (L.) § 201.7 [Amended] ■ 12. Amend § 201.17 by removing the Morrone words ‘‘Quackgrass (Elytrigia repens)’’ ■ 7. Amend § 201.7 by removing in the * * * * * and adding in their place the words Napiergrass—Cenchrus purpureus first sentence the words ‘‘analyses, tests, ‘‘Quackgrass (Elymus repens)’’. and examinations’’ and adding in their (Schumach.) Morrone ■ 13. Revise § 201.18 to read as follows: Needlegrass, green—Nassella viridula place the word ‘‘tests,’’. § 201.18 Other agricultural seeds. (Trin.) Barkworth § 201.8 [Amended] Agricultural seeds other than those * * * * * ■ 8. Amend § 201.8 by removing in the Panicgrass, green—Megathyrsus included in the percentage or last sentence the word ‘‘act’’ and adding maximus (Jacq.) B. K. Simon & W. L. percentages of kind, variety, or type may in its place the word ‘‘Act’’. Jacobs be expressed as ‘‘other crop seeds,’’ but * * * * * § 201.10 [Amended] the percentage shall include collectively Radish—Raphanus sativus L. all kinds, varieties, or types not named ■ 9. In § 201.10 amend paragraph (a) by upon the label. * * * * * adding the word ‘‘Radish;’’ after the ■ 14. Revise § 201.20 to read as follows: Rape, bird—Brassica rapa L. subsp. word ‘‘Peanut;’’. oleifera ■ 10. Revise § 201.12a to read as § 201.20 Germination Rape, turnip—Brassica rapa L. subsp. follows: oleifera The label shall show the percentage of germination for each kind, kind and § 201.12a Seed mixtures. * * * * * variety, kind and type, or kind and Smilo—Oloptum miliaceum (L.) Ro¨ser & Seed mixtures intended for seeding/ hybrid of agricultural seed comprising Hamasha planting purposes shall be designated as more than 5 percent of the whole. The * * * * * a mixture on the label and each seed label shall show the percentage of Teff—Eragrostis tef (Zuccagni) Trotter component shall be listed on the label germination for each kind, kind and * * * * * in the order of predominance. variety, kind and type, or kind and (p) Mixture. The term ‘‘mixture’’ ■ 11. Amend § 201.16 by: hybrid of agricultural seed comprising 5 means seeds consisting of more than ■ a. In paragraph (a) in the first sentence percent of the whole or less if the seed one kind or variety, each present in removing the word ‘‘state’’ and adding is identified individually on the label. excess of 5 percent by weight of the in its place the word ‘‘State’’; ■ 15. Revise § 201.21 to read as follows: whole. A mixture of varieties of a single ■ b. In paragraph (b): kind may be labeled as a blend. ■ i. Removing the terms ‘‘Emex australis § 201.21 Hard seed or dormant seed. (q) Coated seed. The term ‘‘coated Steinh.’’, ‘‘Emex spinosa (L.) Campd.’’, The label shall show the percentage of seed’’ means any seed unit covered with ‘‘Leptochola chinensis (L.) Nees’’, hard seed or dormant seed, as defined a coating material. ‘‘Pennisetum clandestinum Chiov.’’, in § 201.57 or § 201.57a, if any is * * * * * ‘‘Pennisetum macrourum Trin.’’, present. The percentages of hard seed (nn) Coating material. The term ‘‘Pennisetum pedicellatum Trin.’’, and dormant seed shall not be included ‘‘coating material’’ means any substance ‘‘Pennisetum polystachion (L.) Schult.’’, as part of the germination percentage.

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■ 16. Revise § 201.23 to read as follows: ■ 21. Revise § 201.28 to read as follows: determined and established under section 403(c) of the Act: § 201.23 Seller and buyer information. § 201.28 Code designation. * * * * * Consumer packages or containers of The code designation used in lieu of ■ agricultural seed for interstate shipment the full name and address of the 25. Amend § 201.31a by revising must be labeled as follows: interstate shipper pursuant to paragraph (b) to read as follows: (a) The full name and address of the § 201.27(a) shall be approved by the § 201.31a Labeling treated seed. interstate shipper or a code designation Administrator of the Agricultural identifying the interstate shipper, * * * * * Marketing Service (AMS) or such other (b) Name of substance or active pursuant to § 201.24, must be printed on person designated by the Administrator the label. ingredient. The name of any active for the purpose. When used, the AMS ingredient substance as required by (b) If pursuant to paragraph (a) only code designation shall appear on the a code is used to identify the interstate paragraph (a) of this section shall be the label in a clear and legible manner, commonly accepted coined, chemical shipper, the full name and address of along with the full name and address of the consignee must appear on the label. (generic), or abbreviated chemical name. the consignee. The label shall include either the name (c) For purposes of this section and ■ § 201.24, the term shipper means the 22. Revise § 201.29 to read as follows: of the genus and species or the brand seller or consignor who puts the seed § 201.29 Germination of vegetable seed in name as identified on biological product into interstate commerce, and the term containers of 1 pound or less. labels. Commonly accepted coined names are free for general use by the consignee means the buyer or recipient Vegetable seeds in containers of 1 public, are not private trademarks, and of the seed shipment. pound or less which have a germination are commonly recognized as names of ■ 17. Revise § 201.24 to read as follows: percentage equal to or better than the particular substances, such as thiram, standard set forth in § 201.31 need not § 201.24 Code designation. captan, lindane, and dichlone. be labeled to show the percentage of The code designation used in lieu of Examples of commonly accepted germination and date of test. Each the full name and address of the chemical (generic) names are blue-stone, variety of vegetable seed which has a interstate shipper pursuant to calcium carbonate, cuprous oxide, zinc germination percentage less than the § 201.23(a) shall be approved by the hydroxide, hexachlorobenzene, and standard set forth in § 201.31 shall have Administrator of the Agricultural ethyl mercury acetate. The terms the words ‘‘Below Standard’’ clearly Marketing Service (AMS) or such other ‘‘mercury’’ or ‘‘mercurial’’ may be used shown in a conspicuous place on the person designated by the Administrator in labeling all types of mercurials. label or on the face of the container in for the purpose. When used, the AMS Examples of commonly accepted type no smaller than 8 points. Each code designation shall appear on the abbreviated chemical names are BHC variety which germinates less than the label in a clear and legible manner, (1,2,3,4,5,6-Hexachlorocyclohexane) standard shall also be labeled to show along with the full name and address of and DDT (dichloro diphenyl the percentage of germination and the the consignee. trichloroethane). percentage of hard seed (if any). * * * * * § 201.25 [Amended] ■ 23. Add § 201.30c to read as follows: ■ § 201.33 [Amended] 18. Amend § 201.25 by removing in § 201.30c Noxious-weed seeds of the third sentence the word ‘‘act’’ and vegetable seed in containers of more than ■ 26. In § 201.33 amend paragraphs (a) adding in its place the word ‘‘Act’’. 1 pound. and (b) by removing wherever it appears ■ 19. Add § 201.26a to read as follows: Except for those kinds of noxious- the word ‘‘act’’ and adding in its place § 201.26a Vegetable seed mixtures. weed seeds shown in § 201.16(b), the the word ‘‘Act’’. names of kinds of noxious-weed seeds Vegetable seed mixtures for seeding/ § 201.36b [Amended] planting purposes shall be designated as and the rate of occurrence of each shall ■ 27. In § 201.36b, amend paragraph (a) a mixture on the label, and each seed be expressed in the label in accordance by removing wherever it appears the component shall be listed on the label with, and the rate shall not exceed the word ‘‘act’’ and adding in its place the in the order of predominance. rate permitted by, the law and regulations of the State into which the word ‘‘Act’’. ■ 20. Revise § 201.27 to read as follows: seed is offered for transportation or is § 201.37 [Amended] § 201.27 Seller and buyer information. transported. If in the course of such Consumer packages or containers of transportation, or thereafter, the seed is ■ 28. Amend § 201.37 by removing vegetable seed for interstate shipment diverted to another State of destination, wherever it appears the word ‘‘act’’ and must be labeled as follows: the person or persons responsible for adding in its place the word ‘‘Act’’. (a) The full name and address of the such diversion shall cause the seed to be § 201.38 [Removed and Reserved] interstate shipper or a code designation relabeled with respect to noxious-weed identifying the interstate shipper, seed content, if necessary, to conform to ■ 29. Remove and reserve § 201.38. pursuant to § 201.28, must be printed on the laws and regulations of the State § 201.39 [Amended] the label. into which the seed is diverted. ■ (b) If pursuant to paragraph (a) only ■ 24. Amend § 201.31 by revising the 30. In § 201.39, amend paragraph (c) a code is used to identify the interstate heading and the introductory paragraph by removing the word ‘‘proble’’ in and shipper, the full name and address of to read as follows: adding in its place the word ‘‘probe’’. the consignee must appear on the label. ■ 31. Amend § 201.46 by: (c) For purposes of this section and § 201.31 Minimum germination standards ■ a. Revising paragraph (b); and § 201.28, the term shipper means the for vegetable seeds in interstate commerce. ■ b. Adding in Table 1 to paragraph seller or consignor who puts the seed The following minimum germination (d)(2)(iii) entries for ‘‘Camelina’’, into interstate commerce, and the term standards for vegetable seeds in ‘‘Radish’’, and ‘‘Teff’’ in the consignee means the buyer or recipient interstate commerce, which shall be ‘‘Agricultural Seed’’ section in of the seed shipment. construed to include hard seed, are alphabetical order.

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The revisions and additions read as (b) Mixtures consisting of one kinds which comprise more than 50 follows: predominant kind of seed or groups of percent of the sample. kinds of similar size. The weights of the * * * * * § 201.46 Weight of working sample. purity and noxious-weed seed working (d) * * * * * * * * samples in this category shall be (2) * * * determined by the kind or group of (iii) * * *

TABLE 1 TO PARAGRAPH (d)(2)(III)

Minimum Minimum weight for Approximate weight for noxious-weed number Name of seed purity analysis seed of seed per (grams) examination gram (grams)

Agricultural Seed:

******* Camelina ...... 4 40 880

******* Radish ...... 30 300 75

******* Teff ...... 1 10 3,288

*******

§ 201.47a [Amended] carrot (Apiaceae), valerian ■ 35. Amend § 201.51a by revising ■ 32. Amend § 201.47a by: (Valerianaceae), mint (Laminaceae) and paragraph (a) and the table in paragraph ■ a. in paragraph (b)(6) removing the other families in which the seed unit (b)(2)(ii) to read as follows: words ‘‘Buchloe dactyloides’’ and may be a dry, indehiscent one-seeded fruit. For visibly empty fruits, refer to § 201.51a Special procedures for purity adding in their place the words analysis. ‘‘Bouteloua dactyloides’’; inert matter, § 201.51(a)(6); ■ b. In paragraph (c) removing the word (g) * * * (a) The laboratory analyst shall use ‘‘Compositae’’ and adding in its place (1) Intact burs of buffalograss the Uniform Blowing Procedure the word ‘‘Asteraceae’’; (Bouteloua dactyloides) shall be described in this paragraph to separate ■ c. In paragraph (d) removing the word considered pure seed whether or not a pure seed and inert matter in the ‘‘Legumionsae’’ and adding in its place caryopsis is present. Refer to following: Kentucky bluegrass, Canada the word ‘‘Fabaceae’’; § 201.51(a)(6) for burs which are visibly bluegrass, rough bluegrass, Pensacola ■ d. In paragraph (e) removing the word empty. variety of bahiagrass, orchardgrass, blue ‘‘Umbelliferae’’ and adding in its place grama, and side-oats grama. * * * * * (1) Separation of mixtures. Separate the word ‘‘Apiaceae’’; and (3) Special purity procedures for ■ e. In paragraph (f) removing the word seed kinds listed in this section from smooth brome, fairway crested ‘‘Labiatae’’ and adding in its place the other kinds in mixtures before using the wheatgrass, standard crested word ‘‘Lamiaceae’’. Uniform Blowing Procedure. wheatgrass, intermediate wheatgrass, ■ (2) Calibration samples. Obtain 33. Amend § 201.48 by revising the pubescent wheatgrass, tall wheatgrass, first sentence of the introductory text calibration samples and instructions, and western wheatgrass are listed in which are available on loan through the and paragraphs (a), (f), and (g)(1) and (3) § 201.51a(b). to read as follows: Seed Regulatory and Testing Division, * * * * * S&T, AMS, 801 Summit Crossing Place, § 201.48 Kind or variety considered pure § 201.51 [Amended] Suite C, Gastonia, North Carolina 28054. seed. (3) Blowing point. Use the calibration The pure seed shall include all seeds ■ 34. Amend § 201.51 by: samples to establish a blowing point of each kind or each kind and variety ■ a. In paragraph (a)(1) removing the prior to proceeding with the separation under consideration present in excess of words ‘‘Leguminosae’’, ‘‘crucifers’’, and of pure seed and inert matter for these 5 percent by weight of the whole. * * * ‘‘Cruciferae’’, and adding in their places kinds. (a) Immature or shriveled seeds and the words ‘‘Fabaceae’’, ‘‘brassica’’, and (i) Refer to the specifications on the seeds that are cracked or injured. For Brassicaceae’’, respectively; calibration samples for Kentucky seeds of legumes (Fabaceae) and ■ b. In paragraph (b)(2)(iv) removing the bluegrass, orchardgrass, and Pensacola crucifers (Brassicaceae) with the seed word ‘‘Agropyron’’ and adding in its variety of bahiagrass to determine their coats entirely removed refer to place the word ‘‘Elymus’’; appropriate blowing points for the § 201.51(a)(1); ■ c. In paragraph (b)(2)(v) removing the Uniform Blowing Procedure. * * * * * words ‘‘A. repens’’ and adding in their (ii) Use the calibration sample for (f) Intact fruits, whether or not they place the words ‘‘E. repens’’; and Kentucky bluegrass to determine the contain seed, of species belonging to the ■ d. In paragraph (b)(4) removing the blowing points for Canada bluegrass, following families: Sunflower word ‘‘Compositae’’ and adding in its rough bluegrass, blue grama, and side- (Asteraceae), buckwheat (Polygonaceae), place the word ‘‘Asteraceae’’. oats grama.

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(A) The blowing point for Canada bluegrass. Before blowing, extraneous (iii) Use this anemometer reading to bluegrass shall be the same as the material that will interfere with the determine the blower gate setting blowing point determined for Kentucky blowing process shall be removed. The whenever the Uniform Blowing bluegrass. sample to be blown shall be divided Procedure is required. (B) The blowing point for rough into four approximately equal parts and (5) Pure seed and inert matter. Use the bluegrass shall be a factor of 0.82 (82 each part blown separately. The 1.480 calibrated blower to separate the seed percent) of the blowing point factor is restricted to the General-type sample into light and heavy portions. determined for Kentucky bluegrass. The seed blower. 0.82 factor is restricted to the General- (4) Blower calibration. Calibrate and After completing the initial separation, type seed blower. test the blower according to the remove and separate all weed and other (C) The blowing point for blue grama instructions that accompany the crop seeds from the light portion. The shall be a factor of 1.157 of the blowing calibration samples before using the remainder of the light portion shall be point determined for Kentucky blower to analyze the seed sample. Use considered inert matter. Remove all bluegrass. Before blowing, extraneous the anemometer to set the blower gate weed and other crop seeds and other material that will interfere with the opening according to the calibration inert matter (stems, leaves, dirt) from blowing process shall be removed. The sample specifications. the heavy portion and add them to the sample to be blown shall be divided (i) Determine the blowing point using weed seed, other crop seed, or inert into four approximately equal parts and a calibrated anemometer. matter separations, as appropriate. The each blown separately. The 1.157 factor (ii) Position the anemometer fan remainder of the heavy portion shall be is restricted to the General-type seed precisely over the blower opening, set it considered pure seed. blower. at meters per second (m/s), run the (b) * * * (D) The blowing point for side-oats blower at the calibrated gate setting, and grama shall be a factor of 1.480 of the wait 30 seconds before reading the (2) * * * blowing point determined for Kentucky anemometer. (ii) * * *

TABLE OF FACTORS TO APPLY TO MULTIPLE UNITS a

Percent of Pubescent Intermediate Tall Western Smooth single units of Crested b wheat-grass wheat-grass wheat-grass c wheat-grass c brome each kind wheat-grass

50 or below ...... 70 66 72 ...... 72 50.01–55.00 ...... 72 67 74 ...... 74 55.01–60.00 ...... 73 67 75 ...... 75 60.01–65.00 ...... 74 67 76 ...... 76 65.01–70.00 ...... 75 68 77 ...... 60 78 70.01–75.00 ...... 76 68 78 ...... 66 79 75.01–80.00 ...... 77 69 79 50 67 81 80.01–85.00 ...... 78 69 80 55 68 82 85.01–90.00 ...... 79 69 81 65 70 83 90.01–100.00 ...... 79 70 82 70 74 85 a The factors represent the percentages of the multiple unit weights which are considered pure seed. The remaining percentage is regarded as inert matter. b Includes both standard crested wheatgrass and fairway crested wheatgrass. c Dashes in table indicate that no factors are available at the levels shown.

§ 201.56 [Amended] § 201.58 Substrata, temperature, duration prescribed test period or the allowed ■ 36. In § 201.56, amend paragraph (d) of test, and certain other specific directions extension falls on a weekend or public for testing for germination and hard seed. by removing the word ‘‘Umbelliferae’’ holiday, the test may be extended to the and adding in its place the word * * * * * next working day. (Also, see paragraph ‘‘Apiaceae.’’ (a) Definitions and explanations (a)(5) of this section and § 201.57.) ■ 37. Amend § 201.58 by: applicable to table 2—(1) Duration of * * * * * ■ a. Revising paragraphs (a)(1) and tests. The following deviations are (b) * * * (b)(13); permitted from the specified duration of ■ b. Adding in Table 2 to paragraph tests: Any test may be terminated prior (13) Fourwing Saltbush (Atriplex (c)(3) entries for ’’ Camelina’’, ‘‘Radish’’, to the number of days listed under canscens); preparation of seed for test. and ‘‘Teff’’ in the ‘‘Agricultural Seed’’ ‘‘Final count’’ if the maximum De-wing seeds and soak for 2 hours in section in alphabetical order; germination of the sample has then been 3 liters of water, after which rinse with ■ c. Revising in Table 2 to paragraph determined. The number of days stated approximately 3 liters of distilled water. (c)(3) the entry for ‘‘Oat’’ in the for the first count is approximate and a Remove excess water, air dry for 7 days ‘‘Agricultural Seed’’ section; and deviation of 1 to 3 days is permitted. If at room temperature, then test for ■ d. Revising in Table 2 to paragraph at the time of the prescribed test period germination as indicated in Table 2. (c)(3) the entry for ‘‘Brussels Sprouts’’ in the seedlings are not sufficiently the ‘‘Vegetable Seed’’ section. developed for positive evaluation, it is (c) * * * The revisions and additions read as possible to extend the time of the test (3) * * * follows: period two additional days. If the

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TABLE 2 TO PARAGRAPH (C)(3)

Additional directions Temperature First count Final count Name of seed Substrata (°C) days days Fresh and dormant Specific requirements seed

Agricultural Seed:

******* Camelina ...... TB ...... 20 4 7

******* Oat ...... B, T, S ...... 20; 15 5 10 Prechill at 5 or 10 °C for 5 days and test for 7 days or predry and test for 10 days.

******* Radish ...... B, T ...... 20 4 6

******* Teff ...... TB ...... 20—30 4 7 KNO3.

******* Vegetable Seed:

Brussels Sprouts ...... B, P, T ...... 20—30 3 10 Prechill 5 days at 5 or 10 °C for 3 days; KNO3 and Light.

*******

* * * * * ■ b. In paragraph (a)(2) removing in the Fluorescence Tolerance, Based on Test first sentence the word ‘‘act’’ and adding Fluorescence (TFL) § 201.59 [Amended] in its place the word ‘‘Act’’; and * * * * * ■ 38. Amend § 209.59 by removing ■ c. In paragraph (b)(2) adding in the wherever it appears the word ‘‘act’’ and first sentence the word ‘‘other’’ before ■ 41. Revise § 201.64 to read as follows: adding in its place the word ‘‘Act’’. the words ‘‘crop seeds’’. § 201.64 Pure live seed. ■ § 201.60 [Amended] 40. Amend § 201.61 by revising the table heading to read as follows: The tolerance for pure live seed shall ■ 39. Amend § 201.60 by: be determined by applying the ■ a. In paragraph (a)(1) adding in the § 201.61 Fluorescence percentages in respective tolerances to the germination second sentence the word ‘‘teff,’’ after ryegrasses. plus the hard seed and dormant seed, the words ‘‘sweet vernalgrass,’’; *** and the pure seed.

■ 42. Amend § 201.68 by revising the ■ 43. Amend § 201.70 by revising § 201.75 [Amended] introductory text and paragraph (b) to paragraph (a) to read as follows: ■ read as follows: 45. Amend § 201.75 by removing in § 201.70 Limitations of generations for paragraphs (b)(1) and (c) wherever it § 201.68 Eligibility requirements for certified seed. appears the words ‘‘(if certified as to certification of varieties. * * * * * variety)’’. When a seed originator, developer, (a) Recertification of the Certified ■ owner of the variety, or agent thereof 46. In § 201.76 amend Table 5 by class may be permitted when no requests eligibility for certification, the adding in alphabetical order entries for certification agency shall require the Foundation or Registered seed is being ‘‘Camelina’’, ‘‘Chickpea’’, ‘‘Hemp’’, person to provide the following maintained; or ‘‘Radish’’, ‘‘Sunn hemp’’ and footnotes information upon request: * * * * * ‘‘60’’ through ‘‘63’’ to read as follows: * * * * * § 201.74 [Amended] § 201.76 Minimum Land, Isolation, Field, (b) A statement concerning the and Seed Standards. ■ variety’s origin and the breeding or 44. Amend § 201.74 by removing in * * * * * reproductive stabilization procedures paragraphs (a), (b), and (c) the words ‘‘(if used in its development. certified as to variety)’’. * * * * *

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TABLE 5 TO § 201.76

Foundation Registered Certified Crop Land Isolation Field Seed Land Isolation Field Seed Land Isolation Field Seed

******* Camelina ...... 8 1 61 50 5,000 0.1 8 1 61 50 2,000 0.2 8 1 61 50 1,000 0.3 (59 15.24m) (59 15.24m) (59 15.24m) Chickpea ...... 7 1 23 0 10,000 0.1 7 1 23 0 2,000 0.2 7 1 23 0 1,000 0.2

******* Hemp ...... 63 63 63 63 63 63 63 63 63 63 63 63

******* Radish ...... 60 5 1,320 0 0.05 60 5 1,320 1,000 0.1 60 5 660 500 0.25 (59 402.34m) (59 402.34m) (59 201.17m)

******* Sunn hemp ...... 7 1 1,320 62 5,000 0.1 7 1 660 62 1,000 0.25 7 1 330 62 500 0.5 (59 402.34m) (59 201.17m) (59 100.58m)

******* 60 Land must not have grown or been seeded to any cruciferous crops during the previous 5 years. This interval may be reduced to 3 years, if following the same variety and the same or higher certification class. 61 Field producing any class of certified seed must be at least 50 feet from any other variety or fields of the same variety that do not meet the varietal purity requirement for certification. 62 No other Crotalaria species allowed in Foundation, Registered and/or Certified production fields. 63 Refer to the certifying agency in the production State(s) for certification standards.

■ 47. Amend § 201.78 by revising Authority: 302, 305, 402, 408, 409, 413, SUMMARY: The FAA is adopting a new paragraph (e) to read as follows: 414, 53 Stat. 1275, as amended; 7 U.S.C. airworthiness directive (AD) for Bell 1582, 1585, 1592, 1598, 1599, 1603, and Textron Inc. (Bell) Model 214ST § 201.78 Pollen control for hybrids. 1604. helicopters. This AD was prompted by * * * * * ■ 49. In part 202, the heading is revised the discovery of bolts with (e) Hybrid alfalfa. When at least 75 to read as set forth above. nonconforming external thread root percent of the plants are in bloom and radii. This AD requires removing the there is no more than 15 percent seed Subpart C—Provisions Applicable to affected bolts from service and prohibits set, 200 plants shall be examined to Other Proceedings installing an affected bolt on any determine the pollen production index helicopter. The FAA is issuing this AD ■ (PPI). Each plant is rated as 1, 2, 3 or 50. In subpart C, revise the heading to to address the unsafe condition on these 4 with ‘‘1’’ representing no pollen, ‘‘2’’ read as set forth above. products. representing a trace of pollen, ‘‘3’’ Bruce Summers, DATES: This AD is effective August 11, representing substantially less than Administrator, Agricultural Marketing 2020. normal pollen, and ‘‘4’’ representing Service. normal pollen. The rating is weighted as ADDRESSES: For service information [FR Doc. 2020–12920 Filed 7–6–20; 8:45 am] 0, 0.1, 0.6 or 1.0, respectively. The total identified in this final rule, contact Bell number of plants of each rating is BILLING CODE 3410–02–P Textron, Inc., P.O. Box 482, Fort Worth, multiplied by the weighted rating and TX 76101; telephone 817–280–3391; fax the values are totaled. The total is 817–280–6466; or at https:// divided by the number of plants rated DEPARTMENT OF TRANSPORTATION www.bellcustomer.com. You may view and multiplied by 100 to determine the the referenced service information at the PPI. For hybrid production using Federal Aviation Administration FAA, Office of the Regional Counsel, separate male and female rows, the Southwest Region, 10101 Hillwood maximum PPI allowed for 95 percent 14 CFR Part 39 Pkwy., Room 6N–321, Fort Worth, TX hybrid seed is 14 for the Foundation 76177. class, and 6 for the F1 hybrid. For [Docket No. FAA–2020–0171; Product Examining the AD Docket hybrid production using comingled Identifier 2018–SW–028–AD; Amendment parent lines, the maximum PPI allowed 39–21155; AD 2020–14–01] You may examine the AD docket on the internet at https:// for 75 percent hybrid Certified class RIN 2120–AA64 seed is 25, with an allowance for www.regulations.gov by searching for blending to reach a PPI of 25 for fields and locating Docket No. FAA–2020– Airworthiness Directives; Bell Textron 0171; or in person at Docket Operations with a PPI above 25, but no greater than Inc. (Type Certificate Previously Held 30. between 9 a.m. and 5 p.m., Monday by Bell Helicopter Textron Inc.) through Friday, except Federal holidays. Helicopters PART 202—FEDERAL SEED ACT The AD docket contains this AD, any ADMINISTRATIVE PROCEDURES AGENCY: Federal Aviation comments received, and other Administration (FAA), DOT. information. The address for Docket ■ 48. The authority citation for part 202 Operations is U.S. Department of ACTION: Final rule. continues to read as follows: Transportation, Docket Operations, M

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30, West Building Ground Floor, Room operators of helicopters that are outside The FAA has no way of determining W12 140, 1200 New Jersey Avenue SE, the scope of the applicability of the AD. the number of bolts that might need to Washington, DC 20590. FAA Response: The FAA disagrees. be replaced. FOR FURTHER INFORMATION CONTACT: Upon installation of a bolt with a P/N According to the manufacturer, some Haytham Alaidy, Aviation Safety and S/N listed in the applicability, the of the costs of this AD may be covered Engineer, DSCO Branch, FAA, 10101 AD applies to that helicopter, and the under warranty, thereby reducing the Hillwood Pkwy., Fort Worth, TX 76177; required actions of the AD must be cost impact on affected individuals. The phone: 817–222–5224; fax: 817–222– complied with prior to approving the FAA does not control warranty coverage 4960; email [email protected]. helicopter for return to service. These for affected individuals. As a result, all SUPPLEMENTARY INFORMATION: required actions include the installation costs are included in this cost estimate. Discussion prohibition in paragraph (e)(2) of the Authority for This Rulemaking AD. Thus, the AD prohibits the The FAA issued a notice of proposed installation of an affected bolt on any Title 49 of the United States Code rulemaking (NPRM) to amend 14 CFR Bell Model 214ST helicopters after the specifies the FAA’s authority to issue part 39 by adding an AD that would effective date of the AD. rules on aviation safety. Subtitle I, apply to Bell Model 214ST helicopters section 106, describes the authority of with certain serial-numbered spindle to FAA’s Determination the FAA Administrator. Subtitle VII: yoke bolts (bolts) part number (P/N) The FAA has reviewed the relevant Aviation Programs describes in more 214–010–262–103 installed. The NPRM information, considered the comments detail the scope of the Agency’s published in the Federal Register on received, and determined that an unsafe authority. February 26, 2020 (85 FR 11003). The The FAA is issuing this rulemaking NPRM was prompted by the discovery condition exists and is likely to exist or develop on other products of the same under the authority described in of bolts with nonconforming external Subtitle VII, Part A, Subpart III, Section thread root radii. The NPRM proposed type design and that air safety and the public interest require adopting the AD 44701: General requirements. Under to require removing the affected bolts that section, Congress charges the FAA from service and would prohibit requirements as proposed with the changes described previously. These with promoting safe flight of civil installing an affected bolt on any aircraft in air commerce by prescribing helicopter. The FAA is issuing this AD changes are consistent with the intent proposed in the NPRM for correcting the regulations for practices, methods, and to address the unsafe condition on these procedures the Administrator finds products. unsafe condition and will neither increase the economic burden on any necessary for safety in air commerce. Since the FAA issued the NPRM, Bell This regulation is within the scope of Helicopter Textron Inc., changed its operator nor increase the scope of the AD. that authority because it addresses an name to Bell Textron Inc. This AD unsafe condition that is likely to exist or reflects that change and updates the Related Service Information develop on products identified in this contact information. rulemaking action. The FAA reviewed Bell Helicopter Comments Textron Alert Service Bulletin 214ST– Regulatory Findings After the NPRM was published, the 18–93 Revision A, dated April 17, 2019, FAA received comments from the The FAA determined that this AD for Model 214ST helicopters. This would not have federalism implications European Union Aviation Safety Agency service information specifies inspecting (EASA). The following presents the under Executive Order 13132. This AD the historical records and spare parts to would not have a substantial direct comments received on the NPRM and determine the S/N of each bolt. If the S/ the FAA’s response to the comments. effect on the States, on the relationship N of the bolt indicates it is a non- between the national government and Request for the FAA To Change the conforming bolt, the service information the States, or on the distribution of Applicability specifies torque checking the bolt every power and responsibilities among the 25 hours until the bolt reaches its life various levels of government. Request: EASA requested that the limit. FAA revise the applicability of the AD For the reasons discussed above, I to include all helicopters for which the Differences Between This AD and the certify that this AD: affected P/N and S/N bolts are eligible Service Information (1) Is not a ‘‘significant regulatory for installation. EASA stated this action’’ under Executive Order 12866, revision should be made in order to The service information specifies (2) Will not affect intrastate aviation fully prohibit (re)installation of the torque checking the bolt every 25 hours in Alaska, and until it is replaced upon reaching its life affected bolt on any (other) helicopter. (3) Will not have a significant limit, while this AD requires removing EASA further stated that the NPRM’s economic impact, positive or negative, each bolt from service within 25 hours applicability paragraph ‘‘excludes all on a substantial number of small entities time-in-service. helicopters that have another P/N [bolt] under the criteria of the Regulatory installed, or the same P/N but another Costs of Compliance Flexibility Act. S/N installed, but for which installation of that P/N (and any S/N thereof) is The FAA estimates that this AD List of Subjects in 14 CFR Part 39 likely eligible. Since the AD does not affects 16 helicopters of U.S. registry. Air transportation, Aircraft, Aviation apply to those helicopters, none of the The FAA estimates that operators may safety, Incorporation by reference, requirements of the AD would apply incur the following costs in order to Safety. either.’’ According to EASA, the comply with this AD. Labor costs are Adoption of the Amendment prohibition in paragraph (g)(2) of the estimated at $85 per work-hour. NPRM, which prohibits the installation Replacing 1 bolt takes about 8 work- Accordingly, under the authority on any helicopter of a bolt with a P/N hours and parts cost about $7,073 for an delegated to me by the Administrator, and S/N listed in the applicability of the estimated replacement cost of $7,753 the FAA amends 14 CFR part 39 as AD, could be legally disregarded by per helicopter. follows:

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PART 39—AIRWORTHINESS operating any aircraft complying with this additional P/N HPC case that requires DIRECTIVES AD through an AMOC. inspection. The FAA is issuing this AD (g) Related Information to address the unsafe condition on these ■ 1. The authority citation for part 39 products. continues to read as follows: Bell Helicopter Textron Alert Service Bulletin 214ST–18–93 Revision A, dated DATES: This AD is effective August 11, Authority: 49 U.S.C. 106(g), 40113, 44701. April 17, 2019, which is not incorporated by 2020. reference, contains additional information The Director of the Federal Register § 39.13 [Amended] about the subject of this AD. For service approved the incorporation by reference ■ 2. The FAA amends § 39.13 by adding information identified in this AD, contact of a certain publication listed in this AD the following new airworthiness Bell Textron Inc., P.O. Box 482, Fort Worth, as of August 11, 2020. directive (AD): TX 76101; telephone 817–280–3391; fax 817– 280–6466; or at https:// ADDRESSES: For service information 2020–14–01 Bell Textron Inc. (Type www.bellcustomer.com. You may view a identified in this final rule, contact Certificate Previously Held by Bell copy of information at the FAA, Office of the General Electric Company, GE Aviation, Helicopter Textron Inc.): Amendment 39– Regional Counsel, Southwest Region, 10101 Room 285, 1 Neumann Way, Cincinnati, 21155; Docket No. FAA–2020–0171; Product Hillwood Pkwy., Room 6N–321, Fort Worth, OH, 45215; phone: 513–552–3272; Identifier 2018–SW–028–AD. TX 76177. email: [email protected]. (a) Applicability (h) Subject You may view this service information This AD applies to Bell Textron Inc. (Bell) Joint Aircraft Service Component (JASC) at the FAA, Airworthiness Products Model 214ST helicopters, certificated in any Code: 6200, Main Rotor. Section, Operational Safety Branch, category, with a spindle to yoke bolt (bolt) 1200 District Avenue, Burlington, MA, Issued on June 23, 2020. part number (P/N) 214–010–262–103 and 01803. For information on the serial number (S/N) BH179163, BH179164, Gaetano A. Sciortino, availability of this material at the FAA, BH179169, BH179170, BH179171, Deputy Director for Strategic Initiatives, call 781–238–7759. It is also available BH179175, BH179176, BH179178, Compliance & Airworthiness Division, on the internet at https:// BH224783, BH224751, BH224756, Aircraft Certification Service. www.regulations.gov by searching for BH224764, BH224765, BH383851, [FR Doc. 2020–14210 Filed 7–6–20; 8:45 am] BH383853, BH383855, BH383856, and locating Docket No. FAA–2019– BILLING CODE 4910–13–P BH383857, BH383858, BH383860, 0800. BH383861, BH383862, BH383864, BH383865, BH383868, BH383872, Examining the AD Docket BH383873, BH383878, or BH383879 DEPARTMENT OF TRANSPORTATION You may examine the AD docket on installed. Federal Aviation Administration the internet at https:// (b) Unsafe Condition www.regulations.gov by searching for and locating Docket No. FAA–2019– This AD was prompted by the discovery 14 CFR Part 39 that bolts have nonconforming external 0800; or in person at Docket Operations [Docket No. FAA–2019–0800; Project thread root radii. The unsafe condition, if not between 9 a.m. and 5 p.m., Monday Identifier 2005–NE–24–AD; Amendment 39– addressed, could result in the spindle through Friday, except Federal holidays. 21153; AD 2020–13–08] separating from the yoke and subsequent loss The AD docket contains this final rule, of control of the helicopter. RIN 2120–AA64 the regulatory evaluation, any (c) Effective Date comments received, and other Airworthiness Directives; General information. The address for Docket This AD is effective August 11, 2020. Electric Company Turbofan Engines Operations is U.S. Department of (d) Compliance AGENCY: Federal Aviation Transportation, Docket Operations, M– You are responsible for performing each Administration (FAA), DOT. 30, West Building Ground Floor, Room action required by this AD within the W12–140, 1200 New Jersey Avenue SE, ACTION: Final rule. specified compliance time unless it has Washington, DC 20590. already been accomplished prior to that time. SUMMARY: The FAA is superseding FOR FURTHER INFORMATION CONTACT: (e) Required Actions Airworthiness Directive (AD) 2005–23– Scott Stevenson, Aerospace Engineer, (1) Within 25 hours time-in-service, 09 for all General Electric Company (GE) ECO Branch, FAA, 1200 District remove from service each bolt listed in CF6–80E1A1, –80E1A2, –80E1A3, Avenue, Burlington, MA, 01803; phone: paragraph (a) of this AD. –80E1A4, and –80E1A4/B model (781) 238–7132; fax: (781) 238–7199; (2) After the effective date of this AD, do turbofan engines. AD 2005–23–09 email: [email protected]. not install on any helicopter a bolt with a P/ required initial and repetitive SUPPLEMENTARY INFORMATION: N and S/N listed in paragraph (a) of this AD. fluorescent-penetrant inspections (FPI) Discussion (f) Alternative Methods of Compliance of certain areas of high-pressure (AMOCs) compressor (HPC) cases, part number The FAA issued a notice of proposed (1) The Manager, DSCO Branch, FAA, may (P/N) 1509M97G07 and P/N rulemaking (NPRM) to amend 14 CFR approve AMOCs for this AD. Send your 2083M69G03. This AD requires an part 39 to supersede AD 2005–23–09, proposal to Haytham Alaidy, Aviation Safety update of the Airworthiness Limitations Amendment 39–14367 (70 FR 67901, Engineer, DSCO Branch, FAA, 10101 Section (ALS) of GE Engine Manual November 9, 2005), (‘‘AD 2005–23–09’’). Hillwood Pkwy, Fort Worth, TX 76177; GEK99376 and the operator’s existing AD 2005–23–09 applied to all GE CF6– phone: 817–222–5224; fax: 817–222–4960; continuous airworthiness maintenance 80E1A1, –80E1A2, –80E1A3, –80E1A4, email: [email protected]. program (CAMP). This AD was and –80E1A4/B model turbofan engines. (2) For operations conducted under a 14 prompted by GE performed an updated The NPRM published in the Federal CFR part 119 operating certificate or under 14 CFR part 91, subpart K, the FAA suggests lifing analysis on the HPC case. As a Register on January 21, 2020 (85 FR that you notify your principal inspector, or result, GE found additional locations on 3284). The NPRM was prompted by GE lacking a principal inspector, the manager of the cases requiring FPI, revised the performing an updated lifing analysis the local flight standards district office or inspection interval for performing FPI of on the HPC case. As a result, GE found certificate holding district office before the existing location, and added an additional locations on the cases

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requiring FPI, revised the inspection The FAA agrees that TASK 05–21– determined that air safety and the interval for performing FPI of the 02–200–001, dated September 15, 2015, public interest require adopting this AD existing location, and added an in Revision 48 of the GE Engine Manual as proposed. additional P/N HPC case that requires is referenced correctly in this AD. The inspection. The NPRM proposed to FAA notes that the task has a different Related Service Information Under 1 require an update of the ALS of GE date than the GE Engine Manual and the CFR Part 51 Engine Manual GEK99376 and the task is dated correctly in the NPRM. The FAA reviewed TASK 05–21–02– operator’s existing CAMP. The FAA is This task from Revision 48 of the GE 200–001, dated September 15, 2015, issuing this AD to address the unsafe Engine Manual will be uploaded to the from ESM 05–21–02, Life Limits 001 condition on these products. docket upon publication of the final High Pressure Compressor HPC— rule. Comments Scheduled Maintenance Checks, of the The FAA gave the public the Request To Include Reference to Later GE CF6–80E1 Engine Manual opportunity to participate in developing Revisions of Engine Manual GEK99376, Revision 48, dated this AD. The following presents the Delta requested that the FAA include September 15, 2019. The service comments received on the NPRM and a reference to ‘‘and later approved information describes procedures for the FAA’s response to each comment. revisions’’ when referencing the GE performing FPIs of the HPC case. This Request for Clarification on Task Engine Manual in paragraph (g) of this service information is reasonably Referenced in AD AD. available because the interested parties The FAA disagrees because later have access to it through their normal EASA and Delta Airlines (Delta) revisions of the GE Engine Manual course of business or by the means requested clarification on whether cannot be referenced in an AD. identified in the ADDRESSES section. TASK 05–21–02–200–001, dated September 15, 2015, referenced in the Support for the AD Costs of Compliance AD and in the docket, should be from The Air Line Pilots Association, Revision 47 or from Revision 48 of GE International, expressed support for the The FAA estimates that this AD CF6–80E1 Engine Manual GEK99376, AD as written. affects 20 engines installed on airplanes dated September 15, 2019 (‘‘GE Engine of U.S. registry. Conclusion Manual’’). Delta further questioned The FAA estimates the following whether the task should have the same The FAA reviewed the relevant data, costs to comply with this AD: date as the GE Engine Manual. considered the comments received, and

ESTIMATED COSTS

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

Update ALS of Engine Manual ...... 2 work-hours × $85 per hour = $170 ...... $0 $170 $3,400

Authority for This Rulemaking will not have a substantial direct effect PART 39—AIRWORTHINESS Title 49 of the United States Code on the States, on the relationship DIRECTIVES specifies the FAA’s authority to issue between the national government and ■ rules on aviation safety. Subtitle I, the States, or on the distribution of 1. The authority citation for part 39 Section 106, describes the authority of power and responsibilities among the continues to read as follows: the FAA Administrator. Subtitle VII, various levels of government. Authority: 49 U.S.C. 106(g), 40113, 44701. Aviation Programs, describes in more For the reasons discussed above, I § 39.13 [Amended] detail the scope of the Agency’s certify that this AD: authority. (1) Is not a ‘‘significant regulatory ■ 2. The FAA amends § 39.13 by: The FAA is issuing this rulemaking action’’ under Executive Order 12866, ■ a. Removing Airworthiness Directive under the authority described in (2) Will not affect intrastate aviation (AD) 2005–23–09, Amendment 39– Subtitle VII, Part A, Subpart III, Section in Alaska, and 14367 (70 FR 67901, November 9, 2005); 44701, ‘‘General requirements.’’ Under (3) Will not have a significant and that section, Congress charges the FAA ■ b. Adding the following new AD: with promoting safe flight of civil economic impact, positive or negative, aircraft in air commerce by prescribing on a substantial number of small entities 2020–13–08 General Electric Company: regulations for practices, methods, and under the criteria of the Regulatory Amendment 39–21153; Docket No. Flexibility Act. FAA–2019–0800; Project Identifier procedures the Administrator finds 2005–NE–24–AD. necessary for safety in air commerce. List of Subjects in 14 CFR Part 39 This regulation is within the scope of (a) Effective Date that authority because it addresses an Air transportation, Aircraft, Aviation This AD is effective August 11, 2020. safety, Incorporation by reference, unsafe condition that is likely to exist or (b) Affected ADs develop on products identified in this Safety. rulemaking action. This AD replaces AD 2005–23–09, Adoption of the Amendment Amendment 39–14367 (70 FR 67901, November 9, 2005). Regulatory Findings Accordingly, under the authority The FAA has determined that this AD delegated to me by the Administrator, (c) Applicability will not have federalism implications the FAA amends 14 CFR part 39 as This AD applies to General Electric under Executive Order 13132. This AD follows: Company (GE) CF6–80E1A1, –80E1A2,

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–80E1A3, –80E1A4, and –80E1A4/B model (i) TASK 05–21–02–200–001, dated Points, and subsequent amendments can turbofan engines. September 15, 2015, from ESM 05–21–02, be viewed online at publications/. For Life Limits 001 High Pressure Compressor further information, you can contact the (d) Subject HPC—Scheduled Maintenance Checks, of the Joint Aircraft System Component (JASC) GE CF6–80E1 Engine Manual GEK99376, Airspace Policy Group, Federal Aviation Code 7230, Turbine Engine Compressor Revision 48, dated September 15, 2019. Administration, 800 Independence Section. (ii) [Reserved] Avenue SW, Washington, DC, 20591; (3) For GE service information identified in telephone: (202) 267–8783. The Order is (e) Unsafe Condition this AD, contact General Electric Company, also available for inspection at the This AD was prompted by GE performing GE Aviation, Room 285, 1 Neumann Way, National Archives and Records an updated lifing analysis on the high- Cincinnati, OH 45215; phone: 513–552–3272; pressure compressor (HPC) case. Based on Administration (NARA). For email: [email protected]. information on the availability of FAA this analysis, GE found new locations on the (4) You may view this service information case that require fluorescent penetrant at FAA, Airworthiness Products Section, Order 7400.11D at NARA, email inspection (FPI), identified a new inspection Operational Safety Branch, 1200 District [email protected] or go to https:// interval for the existing FPI location, and Avenue, Burlington, MA 01803. For www.archives.gov/federal-register/cfr/ added another part-numbered HPC case that information on the availability of this ibr-locations.html. requires inspection. The FAA is issuing this material at the FAA, call 781–238–7759. FOR FURTHER INFORMATION CONTACT: AD to prevent failure of the HPC case. The (5) You may view this service information unsafe condition, if not addressed, could that is incorporated by reference at the Richard Roberts, Federal Aviation result in uncontained release of the HPC National Archives and Records Administration, Western Service Center, case, engine fire, and damage to the airplane. Administration (NARA). For information on Operations Support Group, 2200 S. (f) Compliance the availability of this material at NARA, 216th Street, Des Moines, WA 98198; email [email protected], or go to: https:// telephone (206) 231–2245. Comply with this AD within the www.archives.gov/federal-register/cfr/ibr- compliance times specified, unless already locations.html. SUPPLEMENTARY INFORMATION: done. Issued on June 17, 2020. Authority for This Rulemaking (g) Required Actions Gaetano A. Sciortino, Within 180 days after the effective date of The FAA’s authority to issue rules Deputy Director for Strategic Initiatives, this AD, replace TASK 05–21–02–200–001 in regarding aviation safety is found in Compliance & Airworthiness Division, GE CF6–80E1 Engine Manual GEK99376 and Aircraft Certification Service. Title 49 of the United States Code. the operator’s existing continuous Subtitle I, Section 106 describes the airworthiness maintenance program with [FR Doc. 2020–14458 Filed 7–6–20; 8:45 am] authority of the FAA Administrator. TASK 05–21–02–200–001, dated September BILLING CODE 4910–13–P Subtitle VII, Aviation Programs, 15, 2015, from ESM 05–21–02, Life Limits 001 High Pressure Compressor HPC— describes in more detail the scope of the Scheduled Maintenance Checks, of the GE DEPARTMENT OF TRANSPORTATION agency’s authority. This rulemaking is CF6–80E1 Engine Manual GEK99376, promulgated under the authority Revision 48, dated September 15, 2019. Federal Aviation Administration described in Subtitle VII, Part A, (h) Alternative Methods of Compliance Subpart I, Section 40103. Under that (AMOCs) 14 CFR Part 71 section, the FAA is charged with prescribing regulations to assign the use (1) The Manager, ECO Branch, FAA, has [Docket No. FAA–2020–0298; Airspace of airspace necessary to ensure the the authority to approve AMOCs for this AD, Docket No. 19–ANM–97] if requested using the procedures found in 14 safety of aircraft and the efficient use of CFR 39.19. In accordance with 14 CFR 39.19, RIN 2120–AA66 airspace. This regulation is within the send your request to your principal inspector scope of that authority as it establishes or local Flight Standards District Office, as Establishment of Class E Airspace; Class E airspace extending upward from appropriate. If sending information directly Quinter, KS 700 feet at Gove County Airport, to the manager of the certification office, Quinter, KS, in support of IFR send it to the attention of the person AGENCY: Federal Aviation identified in paragraph (i) of this AD. You Administration (FAA), DOT. operations at the airport. may email your request to: ANE-AD-AMOC@ ACTION: Final rule. History faa.gov. (2) Before using any approved AMOC, SUMMARY: This action establishes Class The FAA published a notice of notify your appropriate principal inspector, E airspace extending upward from 700 proposed rulemaking in the Federal or lacking a principal inspector, the manager feet above the surface of the earth at Register (85 FR 23495; April 28, 2020) of the local flight standards district office/ Gove County Airport, Quinter, KS, to for Docket No. FAA–2020–0298 to certificate holding district office. accommodate new area navigation establish Class E airspace at Gove (i) Related Information (RNAV) procedures at the airport. This County Airport, Quinter, KS, in support For more information about this AD, action will ensure the safety and of IFR operations at the airport. contact Scott Stevenson, Aerospace Engineer, management of instrument flight rules Interested parties were invited to ECO Branch, FAA, 1200 District Avenue, (IFR) operations within the National participate in this rulemaking effort by Burlington, MA 01803; phone: 781–238– Airspace System. submitting written comments on the 7132; fax: 781–238–7199; email: [email protected]. DATES: Effective 0901 UTC, November 5, proposal to the FAA. No comments 2020. The Director of the Federal were received. (j) Material Incorporated by Reference Register approves this incorporation by Class E airspace designations are (1) The Director of the Federal Register reference action under Title 1 Code of published in paragraph 6005 of FAA approved the incorporation by reference Federal Regulations part 51, subject to Order 7400.11D, dated August 8, 2019, (IBR) of the service information listed in this the annual revision of FAA Order and effective September 15, 2019, which paragraph under 5 U.S.C. 552(a) and 1 CFR 7400.11 and publication of conforming part 51. is incorporated by reference in 14 CFR (2) You must use this service information amendments. 71.1. The Class E airspace designation as applicable to do the actions required by ADDRESSES: FAA Order 7400.11D, listed in this document will be this AD, unless the AD specifies otherwise. Airspace Designations and Reporting published subsequently in the Order.

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Availability and Summary of Lists of Subjects in 14 CFR Part 71 Security Act of 1974. This document Documents for Incorporation by Airspace, Incorporation by reference, also reflects the removal of two Reference Navigation (air). prohibited transaction exemptions This document amends FAA Order (PTEs 2016–01 and 2016–02) published Adoption of the Amendment 7400.11D, Airspace Designations and with the 2016 final rule and the return Reporting Points, dated August 8, 2019, In consideration of the foregoing, the of the amended prohibited transaction and effective September 15, 2019. FAA Federal Aviation Administration exemptions (PTEs 75–1, 77–4, 80–83, Order 7400.11D is publicly available as amends 14 CFR part 71 as follows: 83–1, 84–24, and 86–128) to their pre- listed in the ADDRESSES section of this amendment form. In addition, this document. FAA Order 7400.11D lists PART 71—DESIGNATION OF CLASS A, document reinstates Interpretive Class A, B, C, D, and E airspace areas, B, C, D, AND E AIRSPACE AREAS; AIR Bulletin 96–1. air traffic service routes, and reporting TRAFFIC SERVICE ROUTES; AND DATES: Effective July 7, 2020. points. REPORTING POINTS FOR FURTHER INFORMATION CONTACT: Luisa Grillo-Chope, Office of The Rule ■ 1. The authority citation for part 71 continues to read as follows: Regulations and Interpretations, The FAA is amending Title 14 Code Employee Benefits Security of Federal Regulations (14 CFR) part 71 Authority: 49 U.S.C. 106(f), 106(g); 40103, Administration (EBSA) (202) 693–8825; by establishing Class E airspace 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, Susan Wilker, Office of Exemption 1959–1963 Comp., p. 389. extending upward from 700 feet above Determinations, EBSA (202) 693–8557. the surface of the earth at Gove County § 71.1 [Amended] SUPPLEMENTARY INFORMATION: On April Airport, Quinter, KS. The Class E ■ 2. The incorporation by reference in 8, 2016, the Department of Labor airspace will be established to within published a final regulation titled 5.5 miles of the Gove County Airport. 14 CFR 71.1 of FAA Order 7400.11D, Airspace Designations and Reporting ‘‘Conflict of Interest Rule—Retirement This area would provide airspace for Investment Advice’’ (Fiduciary Rule) new Area Navigation Procedures at Points, dated August 8, 2019, and effective September 15, 2019, is defining who is a ‘‘fiduciary’’ of an Gove County Airport, Quinter, KS. employee benefit plan under section FAA Order 7400.11, Airspace amended as follows: 3(21)(A)(ii) of the Employee Retirement Designations and Reporting Points, is Paragraph 6005 Class E Airspace Areas Income Security Act of 1974 (ERISA) as published yearly and effective on Extending Upward From 700 Feet or More a result of giving investment advice to September 15. Above the Surface of the Earth. a plan or its participants or beneficiaries Regulatory Notices and Analyses * * * * * for a fee or other compensation. The The FAA has determined that this ANM WA E5 Quinter, KS Fiduciary Rule also applied to the regulation only involves an established Gove County Airport, KS definition of a ‘‘fiduciary’’ of a plan body of technical regulations for which (Lat. 39°02′19″ N, long. 100°14′02″ W) (including an individual retirement frequent and routine amendments are That airspace extending upward from 700 account (IRA)) under section necessary to keep them operationally feet above the surface within a 5.5-mile 4975(e)(3)(B) of the Internal Revenue current, is non-controversial and radius of the Gove County airport, Quinter, Code of 1986 (Code). On the same date, unlikely to result in adverse or negative KS. the Department published two new comments. It, therefore: (1) Is not a Issued in Seattle, Washington, on June 29, administrative class exemptions from ‘‘significant regulatory action’’ under 2020. the prohibited transaction provisions of Executive Order 12866; (2) is not a Shawn M. Kozica, ERISA and the Code: The Best Interest ‘‘significant rule’’ under DOT Group Manager, Operations Support Group, Contract Exemption (PTE 2016–01) and Regulatory Policies and Procedures (44 Western Service Center. the Class Exemption for Principal FR 11034; February 26, 1979); and (3) [FR Doc. 2020–14469 Filed 7–6–20; 8:45 am] Transactions in Certain Assets Between Investment Advice Fiduciaries and does not warrant preparation of a BILLING CODE 4910–13–P Regulatory Evaluation as the anticipated Employee Benefit Plans and IRAs (PTE impact is so minimal. Since this is a 2016–02), as well as amendments to the following previously granted routine matter that only affects air traffic DEPARTMENT OF LABOR procedures and air navigation, it is exemptions: PTEs 75–1; 77–4; 80–83; certified that this rule, when Employee Benefits Security 83–1; 84–24; and 86–128 (collectively, promulgated, will not have a significant Administration the PTEs). economic impact on a substantial On June 21, 2018, the United States number of small entities under the 29 CFR Parts 2509 and 2510 Court of Appeals for the Fifth Circuit criteria of the Regulatory Flexibility Act. issued a judgment and mandate vacating RIN 1210–AB96 the Fiduciary Rule, the new PTEs, and Environmental Review the amendments to the previously The FAA has determined that this Conflict of Interest Rule—Retirement granted PTEs in toto. Chamber of action qualifies for categorical exclusion Investment Advice: Notice of Court Commerce, 885 F.3d 360 (5th Cir. 2018); under the National Environmental Vacatur Mandate at 2, Chamber, 885 F.3d 360 Policy Act in accordance with FAA AGENCY: Employee Benefits Security (No. 17–10238) (ECF No. 00514522178). Order 1050.1F, ‘‘Environmental Administration, Department of Labor The vacatur had the effect of reinstating Impacts: Policies and Procedures,’’ ACTION: Final rule; technical the prior regulatory text, i.e., the 1975 1 paragraph 5–6.5a. This airspace action amendment. regulation (1975 Regulation), is not expected to cause any potentially reinstating Interpretive Bulletin 96–1, significant environmental impacts, and SUMMARY: This document implements which had been removed and largely no extraordinary circumstances exist the vacatur of the Department’s 2016 incorporated into the text of the that warrant preparation of an final rule defining who is a ‘‘fiduciary’’ environmental assessment. under the Employee Retirement Income 1 See 40 FR 50842–44 (Oct. 31, 1975).

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Fiduciary Rule, revoking PTEs 2016–01 conforms the text in the CFR to reflect effect, the agency promulgating the and 2016–02, and returning the the mandate of the Fifth Circuit’s action must submit a report, which previously granted PTEs to their pre- decision, which vacated the includes a copy of the action, to each 2016 rulemaking form. This document Department’s 2016 rulemaking in toto. House of the Congress and to the takes the administrative steps necessary Additionally, the Department finds that Comptroller General of the United to conform the regulatory text in the to provide notice and an opportunity to States. This final action is CFR and the text of the previously comment would be unnecessary because administrative and only implements the granted PTEs to the Fifth Circuit’s the Department is simply conducting Fifth Circuit vacatur. Accordingly, the vacatur mandate. This technical the ministerial task of implementing the Department has determined that good amendment is a ministerial action to mandate issued by the Fifth Circuit. cause exists, and that this technical reflect the court’s decision which affects In addition, the Department finds that amendment is not subject to the timing no legal rights or obligations and it has good cause to make the revisions requirements of the Congressional imposes no costs. immediately effective under section Review Act. This final rule reflects the Fifth 553(d) of the Administrative Procedure Statutory Authority Circuit’s vacatur of the Fiduciary Rule Act, 5 U.S.C. 553(d). Section 553(d) under section 3(21)(A)(ii) of ERISA and provides that final rules shall not This regulation is issued pursuant to section 4975(e)(3)(B) of the Code. become effective until 30 days after the authority in section 505 of ERISA Consistent with Federal Register publication in the Federal Register, (Pub. L. 93–406, 88 Stat. 894; 29 U.S.C. requirements, this final rule removes ‘‘except . . . as otherwise provided by 1135) and section 102 of Reorganization language from the CFR that the the agency for good cause,’’ among other Plan No. 4 of 1978, 5 U.S.C. App. 237, Fiduciary Rule added and reinstates the exceptions. The purpose of this and under Secretary of Labor’s Order 1975 Regulation and Interpretive provision is to ‘‘give affected parties a No. 1–2011, 77 FR 1088 (Jan. 9, 2012). Bulletin 96–1. This amendment also reasonable time to adjust their behavior List of Subjects in 29 CFR Parts 2509 corrects a typographical error in the before the final rule takes effect.’’ and 2510 original text of the 1975 Regulation, at Omnipoint Corp. v. FCC, 78 F.3d 620, 29 CFR 2510–3.21(e)(1)(ii). 630 (D.C. Cir. 1996). The Department Employee benefit plans, Pensions. This document also reflects the Fifth has determined that there is good cause For the reasons stated in the Circuit’s vacatur of PTEs 2016–01 and for making this final rule effective preamble, the Department is amending 2016–02, the two new class exemptions immediately because it merely parts 2509 and 2510 of subchapters A granted in connection with the implements the court order that already and B of chapter XXV of title 29 of the Fiduciary Rule, as well as the vacatur of vacated certain regulatory provisions, Code of Federal Regulations as follows: the amendments to the previously and reinstates the prior versions, with granted exemptions, PTEs 75–1, 77–4, Subchapter A—General one minor typographical correction. 80–83, 83–1, 84–24 and 86–128.2 The Accordingly, this final rule is effective Department also withdraws the PART 2509—INTERPRETIVE immediately upon publication. Proposed Best Interest Contract BULLETINS RELATING TO THE This final rule has been determined to Exemption for Insurance Intermediaries, EMPLOYEE RETIREMENT INCOME be not significant for purposes of a related class exemption proposal that SECURITY ACT OF 1974 Executive Orders 12866 and 13563. was not finalized.3 EBSA’s website will Additionally, no analysis is required ■ reflect all of these changes.4 1. The authority citation for part 2509 under the Regulatory Flexibility Act 5 or continues to read as follows: Procedural and Other Matters Sections 202 and 205 of the Unfunded 6 Authority: 29 U.S.C. 1135. Secretary of Section 553 of the Administrative Mandates Reform Act of 1999, because, Labor’s Order 1–2011, 77 FR 1088 (Jan. 9, Procedure Act, 5 U.S.C. 553(b)(3)(B), for the reasons discussed above, the 2012). Sections 2509.75–10 and 2509.75–2 provides that when an agency for good Department is not required to engage in issued under 29 U.S.C. 1052, 1053, 1054. Sec. cause finds that notice and public notice and comment under the 2509.75–5 also issued under 29 U.S.C. 1002. procedures are impracticable, Administrative Procedure Act. This Sec. 2509.95–1 also issued under sec. 625, unnecessary or contrary to the public final rule does not have significant Pub. L. 109–280, 120 Stat. 780. interest, the agency may issue a rule Federalism implications under ■ 2. Add § 2509.96–1 to read as follows: without providing notice and an Executive Order 13132. This final rule opportunity for public comment. The is not a significant regulatory action § 2509.96–1 Interpretive Bulletin Relating Department has determined that there is under Executive Order 12866, and is to Participant Investment Education. good cause for dispensing with public therefore not subject to Executive Order (a) Scope. This interpretive bulletin comments, inasmuch as this rule merely 13771, entitled Reducing Regulations sets forth the Department of Labor’s and Controlling Regulatory Costs. The interpretation of section 3(21)(A)(ii) of 2 The Federal Register citations for the applicable final rule is not subject to the the Employee Retirement Income versions of the previously granted PTEs are as requirements of the Paperwork Security Act of 1974, as amended follows: PTE 75–1, 40 FR 50845 (Oct. 31, 1975), as Reduction Act of 1995 (PRA 95) (44 amended at 71 FR 5883 (Feb. 3, 2006); PTE 77–4, (ERISA), and 29 CFR 2510.3–21(c) as 42 FR 18732 (Apr. 8, 1977); PTE 80–83, 45 FR U.S.C. 3501 et seq.), because it does not applied to the provision of investment- 73189 (Nov. 4, 1980), as amended at 67 FR 9483 contain a collection of information as related educational information to (March 1, 2002); PTE 83–1, 48 FR 895 (Jan. 7, 1983), defined in 44 U.S.C. 3502(3). participants and beneficiaries in as amended at 67 FR 9483 (March 1, 2002); PTE 84– The Congressional Review Act, 5 24, 49 FR 13208 (Apr. 3, 1984), as corrected, 49 FR participant-directed individual account 24819 (June 15, 1984), as amended, 71 FR 5887 U.S.C. 801 et seq., generally provides pension plans (i.e., pension plans that (Feb. 3, 2006); and PTE 86–128, 51 FR 41686 that before certain actions may take permit participants and beneficiaries to (November 18, 1986), as amended, 67 FR 64137 direct the investment of assets in their (October 17, 2002). 5 See 5 U.S.C. 601(2) (limiting ‘‘rules’’ under the individual accounts, including plans 3 See 82 FR 7336 (January 19, 2017). Regulatory Flexibility Act, to rules for which a 4 Available at https://www.dol.gov/agencies/ebsa/ general notice of proposed rulemaking is that meet the requirements of the employers-and-advisers/guidance/exemptions/ published). Department’s regulations at 29 CFR class. 6 Public Law 104–4. 2550.404c–1).

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(b) General. Fiduciaries of an individual account plans.2 In providing securities or other property (2510.3– employee benefit plan are charged with this clarification, the Department does 21(c)(1)(i); and carrying out their duties prudently and not address the ‘‘fee or other (ii) the person, either directly or solely in the interest of participants and compensation, direct or indirect,’’ indirectly, beneficiaries of the plan, and are subject which is a necessary element of (A) has discretionary authority or to personal liability to, among other fiduciary status under ERISA section control with respect to purchasing or things, make good any losses to the plan 3(21)(A)(ii).3 selling securities or other property for resulting from a breach of their fiduciary (c) Investment Advice. Under ERISA the participant or beneficiary (2510.3– duties. ERISA sections 403, 404 and section 3(21)(A)(ii), a person is 21(c)(1)(ii)(A)), or (B) renders the advice 409, 29 U.S.C. 1103, 1104, and 1109. considered a fiduciary with respect to on a regular basis to the participant or Section 404(c) of ERISA provides a an employee benefit plan to the extent beneficiary, pursuant to a mutual limited exception to these rules for a that person ‘‘renders investment advice agreement, arrangement or pension plan that permits a participant for a fee or other compensation, direct understanding (written or otherwise) or beneficiary to exercise control over or indirect, with respect to any moneys with the participant or beneficiary that the assets in his or her individual or other property of such plan, or has the advice will serve as a primary basis account. The Department of Labor’s any authority to do so . . . .’’ The for the participant’s or beneficiary’s regulation, at 29 CFR 2550.404c–1, Department issued a regulation, at 29 investment decisions with respect to describes the kinds of plans to which CFR 2510.3–21(c), describing the plan assets and that such person will section 404(c) applies, the circumstances under which a person render individualized advice based on circumstances under which a will be considered to be rendering the particular needs of the participant or participant or beneficiary will be ‘‘investment advice’’ within the beneficiary (2510.3–21(c)(1)(ii)(B)).4 considered to have exercised meaning of section 3(21)(A)(ii). Because Whether the provision of particular independent control over the assets in section 3(21)(A)(ii) applies to advice investment-related information or his or her account, and the with respect to ‘‘any moneys or other materials to a participant or beneficiary consequences of a participant’s or property’’ of a plan and 29 CFR 2510.3– constitutes the rendering of ‘‘investment beneficiary’s exercise of such control.1 21(c) is intended to clarify the advice,’’ within the meaning of 29 CFR With both an increase in the number application of that section, it is the view 2510.3–21(c)(1), generally can be of participant-directed individual of the Department of Labor that the determined only by reference to the account plans and the number of criteria set forth in the regulation apply facts and circumstances of the particular investment options available to to determine whether a person renders case with respect to the individual plan participants and beneficiaries under ‘‘investment advice’’ to a pension plan participant or beneficiary. To facilitate such plans, there has been an increasing participant or beneficiary who is such determinations, however, the recognition of the importance of permitted to direct the investment of Department of Labor has identified, in providing participants and beneficiaries assets in his or her individual account. paragraph (d), below, examples of whose investment decisions will Applying 29 CFR 2510.3–21(c) in the investment-related information and directly affect their income at context of providing investment-related materials which if provided to plan retirement, with information designed information to participants and participants and beneficiaries would to assist them in making investment and beneficiaries of participant-directed not, in the view of the Department, retirement-related decisions appropriate individual account pension plans, a result in the rendering of ‘‘investment to their particular situations. Concerns person will be considered to be advice’’ under ERISA section have been raised, however, that the rendering ‘‘investment advice,’’ within 3(21)(A)(ii) and 29 CFR 2510.3–21(c). provision of such information may in the meaning of ERISA section (d) Investment Education. For some situations be viewed as rendering 3(21)(A)(ii), to a participant or purposes of ERISA section 3(21)(A)(ii) ‘‘investment advice for a fee or other beneficiary only if: and 29 CFR 2510.3–21(c), the compensation,’’ within the meaning of (i) The person renders advice to the Department of Labor has determined ERISA section 3(21)(A)(ii), thereby participant or beneficiary as to the value that the furnishing of the following giving rise to fiduciary status and of securities or other property, or makes categories of information and materials potential liability under ERISA for recommendations as to the advisability to a participant or beneficiary in a investment decisions of plan of investing in, purchasing, or selling participant-directed individual account participants and beneficiaries. pension plan will not constitute the In response to these concerns, the 2 Issues relating to the circumstances under rendering of ‘‘investment advice,’’ Department of Labor is clarifying herein which information provided to participants and beneficiaries may affect a participant’s or irrespective of who provides the the applicability of ERISA section beneficiary’s ability to exercise independent control information (e.g., plan sponsor, 3(21)(A)(ii) and 29 CFR 2510.3–21(c) to over the assets in his or her account for purposes fiduciary or service provider), the the provision of investment-related of relief from fiduciary liability under ERISA frequency with which the information is educational information to participants section 404(c) are beyond the scope of this interpretive bulletin. Accordingly, no inferences shared, the form in which the and beneficiaries in participant directed should be drawn regarding such issues. See 29 CFR information and materials are provided 2550.404c–1(c)(2). It is the view of the Department, (e.g., on an individual or group basis, in 1 The section 404(c) regulation conditions relief however, that the provision of investment-related writing or orally, or via video or from fiduciary liability on, among other things, the information and material to participants and participant or beneficiary being provided or having beneficiaries in accordance with paragraph (d) of computer software), or whether an the opportunity to obtain sufficient investment this interpretive bulletin will not, in and of itself, identified category of information and information regarding the investment alternatives affect the availability of relief under section 404(c). materials is furnished alone or in available under the plan in order to make informed 3 The Department has expressed the view that, for combination with other identified investment decisions. Compliance with this purposes of section 3(21)(A)(ii), such fees or other condition, however, does not require that compensation need not come from the plan and categories of information and materials. participants and beneficiaries be offered or should be deemed to include all fees or other provided either investment advice or investment compensation incident to the transaction in which 4 This IB does not address the application of 29 education, e.g. regarding general investment the investment advise has been or will be rendered. CFR 2510.3–21(c) to communications with principles and strategies, to assist them in making See A.O. 83–60A (Nov. 21, 1983); Reich v. fiduciaries of participant-directed individual investment decisions. 29 CFR 2550.404c–1(c)(4). McManus, 883 F. Supp. 1144 (N.D. Ill. 1995). account pension plan plans.

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(1) Plan Information. (i) Information (3) Asset Allocation Models. returns of different asset classes (e.g., and materials that inform a participant Information and materials (e.g., pie equities, bonds, or cash) over defined or beneficiary about the benefits of plan charts, graphs, or case studies) that periods of time; (ii) there is an objective participation, the benefits of increasing provide a participant or beneficiary with correlation between the asset allocations plan contributions, the impact of models, available to all plan generated by the materials and the preretirement withdrawals on participants and beneficiaries, of asset information and data supplied by the retirement income, the terms of the allocation portfolios of hypothetical participant or beneficiary; (iii) all plan, or the operation of the plan; or individuals with different time horizons material facts and assumptions (e.g., (ii) information such as that described and risk profiles, where: (i) Such models retirement ages, life expectancies, in 29 CFR 2550.404c–1(b)(2)(i) on are based on generally accepted income levels, financial resources, investment alternatives under the plan investments theories that take into replacement income ratios, inflation (e.g., descriptions of investment account the historic returns of different rates, and rates of return) which may objectives and philosophies, risk and asset classes (e.g., equities, bonds, or affect a participant’s or beneficiary’s return characteristics, historical return cash) over define periods of time; (ii) all assessment of the different asset information, or related prospectuses).5 material facts and assumptions on allocations accompany the materials or The information and materials which such models are based (e.g., are specified by the participant or described above relate to the plan and retirement ages, life expectancies, beneficiary; (iv) to the extent that an plan participation, without reference to income levels, financial resources, asset allocation generated by the the appropriateness of any individual replacement income ratios, inflation materials identifies any specific investment option for a particular rates, and rates of return) accompany investment alternative available under participant or beneficiary under the the models; (iii) to the extent that an the plan, the asset allocation is plan. The information, therefore, does asset allocation model identifies any accompanied by a statement indicating not contain either ‘‘advice’’ or specific investment alternative available that other investment alternatives ‘‘recommendations’’ within the meaning under the plan, the model is having similar risk and return of 29 CFR 2510.3–21(c)(1)(i). accompanied by a statement indicating characteristics may be available under Accordingly, the furnishing of such that other investment alternatives the plan and identifying where information would not constitute the having similar risk and return information on those investment rendering of ‘‘investment advice’’ for characteristics may be available under alternatives may be obtained; and (v) the purposes of section 3(21)(A)(ii) of the plan and identifying where materials either take into account or are ERISA. information on those investment accompanied by a statement indicating (2) General Financial and Investment alternatives may be obtained; and (iv) that, in applying particular asset Information. Information and materials the asset allocation models are allocations to their individual that inform a participant or beneficiary accompanied by a statement indicating situations, participants or beneficiaries about: (i) General financial and that, in applying particular asset should consider their other assets, investment concepts, such as risk and allocation models to their individual income, and investments (e.g., equity in return, diversification, dollar cost situations, participants or beneficiaries a home, IRA investments, savings averaging, compounded return, and tax should consider their other assets, accounts, and interests in other deferred investment; (ii) historic income, and investments (e.g., equity in qualified and non-qualified plans) in differences in rates of return between a home, IRA investments, savings addition to their interests in the plan. The information provided through the different asset classes (e.g., equities, accounts, and interests in other use of the above-described materials bonds, or cash) based on standard qualified and non-qualified plans) in enables participants and beneficiaries market indices; (iii) effects of inflation; addition to their interests in the plan. Because the information and materials independently to design and assess (iv) estimating future retirement income described above would enable a multiple asset allocation models, but needs; (v) determining investment time participant or beneficiary to assess the otherwise these materials do not differ horizons; and (vi) assessing risk relevance of an asset allocation model to from asset allocation models based on tolerance. his or her individual situation, the hypothetical assumptions. Such The information and materials furnishing of such information would information would not constitute a described above are general financial not constitute a ‘‘recommendation’’ ‘‘recommendation’’ within the meaning and investment information that have within the meaning of 29 CFR 2510.3– of 29 CFR 2510.3–21(c)(1)(i) and, no direct relationship to investment 21(c)(1)(i) and, accordingly, would not accordingly, would not constitute alternatives available to participants and constitute ‘‘investment advice’’ for ‘‘investment advice’’ for purposes of beneficiaries under a plan or to purposes of section 3(21)(A)(ii) of section 3(21)(A)(ii) of ERISA. individual participants or beneficiaries. ERISA. This result would not, in the The Department notes that the The furnishing of such information, view of the Department, be affected by information and materials described in therefore, would not constitute the fact that a plan offers only one subparagraphs (1)–(4) above merely rendering ‘‘advice’’ or making investment alternative in a particular represent examples of the type of ‘‘recommendations’’ to a participant or asset class identified in an asset information and materials which may be beneficiary within the meaning of 29 allocation model. furnished to participants and CFR 2510.3–21(c)(1)(i). Accordingly, the (4) Interactive Investment Materials. beneficiaries without such information furnishing of such information would Questionnaires, worksheets, software, and materials constituting ‘‘investment not constitute the rendering of and similar materials which provide a advice.’’ In this regard, the Department ‘‘investment advice’’ for purposes of participant or beneficiary the means to recognizes that there may be many other section 3(21)(A)(ii) of ERISA. estimate future retirement income needs examples of information, materials, and and assess the impact of different asset educational services which, if furnished 5 Descriptions of investment alternatives under allocations on retirement income, to participants and beneficiaries, would the plan may include information relating to the generic asset class (e,g., equities, bonds, or cash) of where: (i) Such materials are based on not constitute ‘‘investment advice.’’ the investment alternatives. 29 CFR 2550.404c– generally accepted investment theories Accordingly, no inferences should be 1(b)(2)(i)(B)(1)(ii). that take into account the historic drawn from subparagraphs (1)–(4),

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above, with respect to whether the Subchapter B—Definitions and Coverage other property of such plan, or having furnishing of any information, materials under the Employee Retirement Income any authority or responsibility to do so, or educational services not described Security Act of 1974 shall not be deemed to be a fiduciary regarding any assets of the plan with therein may constitute ‘‘investment PART 2510—DEFINITIONS OF TERMS respect to which such person does not advice.’’ Determinations as to whether USED IN SUBCHAPTERS C, D, E, F, have any discretionary authority, the provision of any information, AND G OF THIS CHAPTER materials or educational services not discretionary control or discretionary described herein constitutes the ■ 1. The authority citation for part 2510 responsibility, does not exercise any rendering of ‘‘investment advice’’ must continues to read as follows: authority or control, does not render investment advice (as defined in be made by reference to the criteria set Authority: 29 U.S.C. 1002(2), 1002(21), paragraph (c)(1) of this section) for a fee forth in 29 CFR 2510. 3–21(c)(1). 1002(37), 1002(38), 1002(40), 1031, and 1135; or other compensation, and does not (e) Selection and Monitoring of Secretary of Labor’s Order 1–2011, 77 FR 1088 (Jan. 9, 2019); Secs. 2510.3–21, 2510.3– have any authority or responsibility to Educators and Advisors. As with any 101 and 2510.3–102 also issued under Sec. render such investment advice, designation of a service provider to a 102 of Reorganization Plan No. 4 of 1978, 5 provided that nothing in this paragraph plan, the designation of a person(s) to U.S.C. App. 237 (2012). E.O. 12108, 22 FR shall be deemed to: provide investment educational services 1065 (Jan. 3, 1979) and 29 U.S.C. 1135 note. (i) Exempt such person from the or investment advice to plan Section 2510.3–38 is also issued under Pub. provisions of section 405(a) of the Act participants and beneficiaries is an L. 105–72, Sec. 1(b), 111 Stat. 1457 (1997). concerning liability for fiduciary exercise of discretionary authority or ■ 2. Revise § 2510.3–21 to read as breaches by other fiduciaries with control with respect to management of follows: respect to any assets of the plan; or the plan; therefore, persons making the (ii) Exclude such person from the § 2510.3–21 definition of the term ‘‘party in interest’’ designation must act prudently and (a)–(b) [Reserved] (as set forth in section 3(14)(B) of the solely in the interest of the plan (c) Investment advice. (1) A person Act) with respect to any assets of the participants and beneficiaries, both in shall be deemed to be rendering plan. making the designation(s) and in ‘‘investment advice’’ to an employee (d) Execution of securities continuing such designation(s). See benefit plan, within the meaning of transactions. (1) A person who is a ERISA sections 3(21)(A)(i) and 404(a), section 3(21)(A)(ii) of the Employee broker or dealer registered under the 29 U.S.C. 1002 (21)(A)(i) and 1104(a). In Retirement Income Security Act of 1974 Securities Exchange Act of 1934, a addition, the designation of an (the Act) and this paragraph, only if: reporting dealer who makes primary investment advisor to serve as a (i) Such person renders advice to the markets in securities of the United fiduciary may give rise to co-fiduciary plan as to the value of securities or other States Government or of an agency of liability if the person making and property, or makes recommendation as the United States Government and continuing such designation in doing so to the advisability of investing in, reports daily to the Federal Reserve fails to act prudently and solely in the purchasing, or selling securities or other Bank of New York its positions with interest of plan participants and property; and respect to such securities and beneficiaries; or knowingly participates (ii) Such person either directly or borrowings thereon, or a bank in, conceals or fails to make reasonable indirectly (e.g., through or together with supervised by the United States or a efforts to correct a known breach by the any affiliate)— State, shall not be deemed to be a (A) Has discretionary authority or investment advisor. See ERISA section fiduciary, within the meaning of section control, whether or not pursuant to 3(21)(A) of the Act, with respect to an 405(a), 29 U.S.C. 1105(a). The agreement, arrangement or employee benefit plan solely because Department notes, however, that, in the understanding, with respect to such person executes transactions for context of an ERISA section 404(c) plan, purchasing or selling securities or other the purchase or sale of securities on neither the designation of a person to property for the plan; or behalf of such plan in the ordinary provide education nor the designation (B) Renders any advice described in course of its business as a broker, dealer, of a fiduciary to provide investment paragraph (c)(1)(i) of this section on a or bank, pursuant to instructions of a advice to participants and beneficiaries regular basis to the plan pursuant to a fiduciary with respect to such plan, if: would, in itself, give rise to fiduciary mutual agreement, arrangement or (i) Neither the fiduciary nor any liability for loss, or with respect to any understanding, written or otherwise, affiliate of such fiduciary is such broker, breach of part 4 of title I of ERISA, that between such person and the plan or a dealer, or bank; and is the direct and necessary result of a fiduciary with respect to the plan, that (ii) The instructions specify (A) the participant’s or beneficiary’s exercise of such services will serve as a primary security to be purchased or sold, (B) a independent control. 29 CFR basis for investment decisions with price range within which such security 2550.404c–1(d). The Department also respect to plan assets, and that such is to be purchased or sold, or, if such notes that a plan sponsor or fiduciary person will render individualized security is issued by an open-end would have no fiduciary responsibility investment advice to the plan based on investment company registered under or liability with respect to the actions of the particular needs of the plan the Investment Company Act of 1940 a third party selected by a participant or regarding such matters as, among other (15 U.S.C. 80a–1, et seq.), a price which beneficiary to provide education or things, investment policies or strategy, is determined in accordance with Rule investment advice where the plan overall portfolio composition, or 22c–1 under the Investment Company Act of 1940 (17 CFR 270.22c–1), (C) a sponsor or fiduciary neither selects nor diversification of plan investments. (2) A person who is a fiduciary with time span during which such security endorses the educator or advisor, nor respect to a plan by reason of rendering may be purchased or sold (not to exceed otherwise makes arrangements with the investment advice (as defined in five business days), and (D) the educator or advisor to provide such paragraph (c)(1) of this section) for a fee minimum or maximum quantity of such services. or other compensation, direct or security which may be purchased or indirect, with respect to any moneys or sold within such price range, or, in the

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case of a security issued by an open-end management or policies of a person Waste Management Division, Office of investment company registered under other than an individual. Resource Conservation and Recovery the Investment Company Act of 1940, (5304P), Environmental Protection Jeanne Klinefelter Wilson, the minimum or maximum quantity of Agency, 1200 Pennsylvania Avenue such security which may be purchased Acting Assistant Secretary, Employee Benefits NW, Washington, DC 20460; telephone Security Administration, U.S. Department of or sold, or the value of such security in Labor. number 703–308–0319; email address: dollar amount which may be purchased [email protected]; or Melissa or sold, at the price referred to in [FR Doc. 2020–14260 Filed 7–2–20; 8:45 am] Kaps, Materials Recovery and Waste paragraph (d)(1)(ii)(B) of this section. BILLING CODE 4510–29–P Management Division, Office of (2) A person who is a broker-dealer, Resource Conservation and Recovery reporting dealer, or bank which is a (5304P), Environmental Protection ENVIRONMENTAL PROTECTION fiduciary with respect to an employee Agency, 1200 Pennsylvania Avenue AGENCY benefit plan solely by reason of the NW, Washington, DC 20460; telephone number 703–308–6787; email address: possession or exercise of discretionary 40 CFR Parts 63, 260, 261, and 278 authority or discretionary control in the [email protected]. management of the plan or the [EPA–HQ–OLEM–2018–0830; FRL–10006– SUPPLEMENTARY INFORMATION: management or disposition of plan 71–OLEM] Table of Contents assets in connection with the execution RIN 2050–AG93 of a transaction or transactions for the The information presented in this purchase or sale of securities on behalf Modernizing Ignitable Liquids preamble is organized as follows: of such plan which fails to comply with Determinations I. General Information the provisions of paragraph (d)(1) of this A. Does this action apply to me? AGENCY: Environmental Protection section, shall not be deemed to be a B. What action is EPA taking? Agency (EPA). fiduciary regarding any assets of the C. What is EPA’s authority for taking this plan with respect to which such broker- ACTION: Final rule. action? D. What are the incremental costs and dealer, reporting dealer or bank does not SUMMARY: The Environmental Protection benefits of this action? have any discretionary authority, Agency (EPA) is finalizing updates to II. Background discretionary control or discretionary the regulations for the identification of A. What is a hazardous waste? responsibility, does not exercise any B. What is the hazardous waste ignitable hazardous waste under the authority or control, does not render characteristic of ignitability? Resource Conservation and Recovery investment advice (as defined in C. What is the regulatory history of the Act (RCRA) and to modernize the RCRA paragraph (c)(1) of this section) for a fee ignitability characteristic? test methods that currently require the D. Summary of the Proposed Rule or other compensation, and does not use of mercury thermometers. These III. Discussion of the Final Rule and Public have any authority or responsibility to revisions provide greater clarity to Comments render such investment advice, hazardous waste identification, provide A. Flash Point Test Methods provided that nothing in this paragraph B. Mercury Thermometer Requirements in flexibility in testing requirements, shall be deemed to: Air Sampling and Stack Emissions improve environmental compliance, (i) Exempt such broker-dealer, Methods and, thereby, enhance protection of C. Technical Corrections to 40 CFR 261.21 reporting dealer, or bank from the human health and the environment. D. Revised Definition of Aqueous and provisions of section 405(a) of the Act DATES: This final rule is effective on Comments on the Aqueous Alcohol concerning liability for fiduciary September 8, 2020. The incorporation Exclusion breaches by other fiduciaries with by reference of certain publications E. Sampling of Multiple Phase Wastes respect to any assets of the plan; or F. Pressure Filtration and Ignitable Liquids listed in the rule is approved by the G. Additional Conforming Amendments (ii) Exclude such broker-dealer, Director of the Federal Register as of reporting dealer, or bank from the IV. Incorporation by Reference September 8, 2020. V. State Authorization definition, of the term ‘‘party in ADDRESSES: The docket for this action, A. Applicability of Final Rule in interest’’ (as set forth in section 3(14)(B) Authorized States of the Act) with respect to any assets of identified by docket identification (ID) number EPA–HQ–OLEM–2018–0830, is B. Effect on State Authorization the plan. VI. Statutory and Executive Order (E.O.) available at https://www.regulations.gov (e) Affiliate and control. (1) For Reviews or at the Office of Land & Emergency A. Executive Order 12866: Regulatory purposes of paragraphs (c) and (d) of Management Docket (OLEM Docket), this section, an ‘‘affiliate’’ of a person Planning and Review and Executive Environmental Protection Agency Order 13563: Improving Regulation and shall include: Docket Center (EPA/DC), West William Regulatory Review (i) Any person directly or indirectly, Jefferson Clinton Bldg., Rm. 3334, 1301 B. Executive Order 13771: Reducing through one or more intermediaries, Constitution Ave. NW, Washington, DC. Regulations and Controlling Regulatory controlling, controlled by, or under The Public Reading Room is open from Costs common control with such person; C. Paperwork Reduction Act (PRA) 8:30 a.m. to 4:30 p.m., Monday through D. Regulatory Flexibility Act (RFA) (ii) Any officer, director, partner, Friday, excluding legal holidays. The E. Unfunded Mandates Reform Act employee or relative (as defined in telephone number for the Public (UMRA) section 3(15) of the Act) of such person; Reading Room is (202) 566–1744, and F. Executive Order 13132: Federalism and the telephone number for the OLEM G. Executive Order 13175: Consultation (iii) Any corporation or partnership of Docket is (202) 566–0270. Please review and Coordination With Indian Tribal which such person is an officer, director the visitor instructions and additional Governments or partner. information about the docket available H. Executive Order 13045: Protection of Children From Environmental Health (2) For purposes of this paragraph, the at https://www.epa.gov/dockets. Risks and Safety Risks term ‘‘control’’ means the power to FOR FURTHER INFORMATION CONTACT: I. Executive Order 13211: Actions exercise a controlling influence over the Daniel Fagnant, Materials Recovery and Concerning Regulations That

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Significantly Affect Energy Supply, Solid Waste: Physical/Chemical $832,000 to $5 million (seven percent Distribution or Use Methods (SW–846); specifically, discount rate). EPA’s analysis shows J. National Technology Transfer and Methods 0010, 0011, 0020, 0023A, and qualitative benefits to human health and Advancement Act (NTTAA) 0051. the environment through the reduced K. Executive Order 12898: Federal Actions use of mercury thermometers. EPA does To Address Environmental Justice in C. What is EPA’s authority for taking Minority Populations and Low-Income this action? not expect the other parts of this action Populations to affect any entity because they do not L. Congressional Review Act (CRA) The authority for this rule can be create new requirements or change found in sections 1002, 1006, 2002, existing requirements. I. General information 3001–3009, 3013, and 3017 of the Solid II. Background A. Does this action apply to me? Waste Disposal Act (SWDA) of 1970, as amended by the Resource Conservation A. What is a hazardous waste? You may be potentially affected by and Recovery Act (RCRA) of 1976, as this action if you conduct testing amended by the Hazardous and Solid Subtitle C of RCRA and its activities to determine the ignitability Waste Amendments of 1984 (HSWA), 42 implementing regulations establish a characteristics of certain wastes and/or U.S.C. 6901, 6905, 6912, 6921–6929, cradle-to-grave regulatory management use SW–846 air sampling and stack 6934, and 6938; sections 101 et seq. of scheme for certain solid wastes that emissions Methods 0010, 0011, 0020, the Clean Air Act, as amended, 42 qualify as hazardous wastes. Any 0023A, or 0051. The following list of U.S.C. 7401 et seq. garbage, refuse, sludge from a waste North American Industrial treatment plant, water supply treatment Classification System (NAICS) codes is D. What are the incremental costs and plant, or air pollution control facility not intended to be exhaustive, but rather benefits of this action? and other discarded material, including provides a guide to help readers EPA prepared an economic analysis of solid, liquid, semisolid, or contained determine whether this document the potential costs and benefits gaseous material is a ‘‘solid waste’’ applies to them. If you have questions associated with this action. The under RCRA section 1004(27) (42 U.S.C. regarding the applicability of this action Regulatory Impact Analysis of the 6903(27)). EPA has further defined the to a particular entity, consult the person Modernization of Ignitable Liquid term ‘‘solid waste’’ for purposes of its listed in the FOR FURTHER INFORMATION Determinations Rule is available in the RCRA hazardous waste regulations (40 CONTACT section. Potentially affected docket. The final rule will modify SW– CFR 261.2). To be considered a entities may include: 846 test methods while also retaining hazardous waste, a material first must • Other Electric Power Generation the current procedures to provide be classified as a solid waste. Generators (NAICS code 221118). entities increased flexibility. For the of solid waste must determine whether • Petroleum Refineries (NAICS code purpose of the analysis, EPA assumes their wastes are hazardous wastes (40 324110). that every facility that currently CFR 262.11). A solid waste is a • Engineering Services (NAICS code conducts flash point testing: (1) Is hazardous waste if it exhibits 541330). compliant with the current test characteristics of ignitability, • Testing Laboratories (NAICS code methods, (2) will use the updated test corrosivity, reactivity, or toxicity (40 541380). methods if cost effective, and (3) will CFR 261.20 through 261.24), or is a • Environmental Consulting Services continue to conduct flash point testing. listed waste (40 CFR 261.30 through (NAICS code 541620). The universe of facilities affected by 261.33). Listed wastes include wastes • Research and Development in the the updates to the ignitability test from non-specific sources, such as spent Physical, Engineering, and Life Sciences methods and SW–846 air sampling and solvents; residuals such as by-products (except Biotechnology) (NAICS code stack emissions test methods includes: and sludges from specific industries; 541712). (1) Commercial laboratories, (2) EPA and discarded, unused commercial • All Other Support Services (NAICS laboratories, and (3) state laboratories. chemical products. code 561990). EPA identified 217 unique commercial B. What is the hazardous waste • Hazardous Waste Treatment and laboratories that conduct ignitability characteristic of ignitability? Disposal (NAICS code 562211). testing under either Method 1010A or 1020. EPA identified an additional 18 Under 40 CFR 261.21, the B. What action is EPA taking? commercial laboratories accredited to characteristic of ignitability identifies First, EPA is updating the test conduct any of the air sampling and solid waste as hazardous based on the methods required for measuring the stack emissions test methods that would properties of the waste that give it the flash point of a liquid waste when be updated under rule, for a total of 235 potential to cause harm to human health determining if that waste is an ignitable commercial labs affected by the rule. or the environment through direct or hazardous waste (i.e., SW–846 Method These 235 total laboratories are part of indirect fire hazard, including 1010A (Pensky-Martens) or Method 177 unique firms, including several contributing to or causing landfill fires. 1020B (Setaflash)) under 40 CFR 261.21. large commercial laboratories with Waste that is identified as hazardous Second, EPA is codifying existing multiple locations. EPA estimates that pursuant to 40 CFR 261.21 has the EPA guidance regarding the definition of the total number of laboratories, Hazardous Waste Number of D001. aqueous for purposes of 40 CFR including 20 state and nine federal Ignitable hazardous waste (D001) is 261.21(a)(1). Third, EPA is updating laboratories, potentially affected by this regulated to minimize its opportunity to cross references to Department of rule is 264. cause or contribute to fires during Transportation (DOT) regulations and The economic analysis indicates that routine waste management activities. also making certain other conforming the rule is projected to result in Solid wastes that are regulated as amendments and technical corrections. annualized cost savings of about ignitable hazardous waste include: (1) Finally, EPA is adding mercury $78,500 to $477,000 (based on a Certain liquids with flash points less thermometer alternatives in the air discount rate of seven percent). The net than 60 °C (140 °F); (2) non-liquid sampling and stack emissions test present value of costs over 20 years is substances that are capable, under methods in Test Methods for Evaluating estimated to be a cost savings of standard temperature and pressure, of

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causing fire through friction, absorption testing when the Methods Innovation method). The Agency also proposed to of moisture, or spontaneous chemical Rule was finalized in 2005 (70 FR retain the ASTM standards D93–79, changes and, when ignited, burns so 34550, June 14, 2005), agreeing with D93–80, and D3278–78 within Methods vigorously and persistently that they public comments that EPA further study 1010B and 1020C. The Agency proposed create a hazard; (3) ignitable compressed the changes in flash point testing that the original ASTM standards and gases; and (4) oxidizers. standards. the new ASTM standards referenced in EPA later issued a final rule to correct Methods 1010 and 1020 are all C. What is the regulatory history of the the ignitability characteristic at 40 CFR ignitability characteristic? technically acceptable for 261 by replacing obsolete references to determinations of flash point for The ignitability characteristic was DOT regulations related to definitions of ignitable liquids. Therefore, a generator originally proposed in 1978 (43 FR ignitable compressed gases and or laboratory may choose to use any of 58945, December 18, 1978) with an oxidizers (71 FR 40254, July 14, 2006). the ASTM standards listed in Methods objective of identifying wastes that That final rule amended the regulation 1010B and 1020C, which are being present a fire hazard due to being by revising paragraphs (a)(3) and (a)(4) finalized today. The Agency anticipates ignitable under routine waste disposal of § 261.21 and adding notes 1 through that domestic and international efforts and storage conditions. The ignitability 4 to the end of that section. No change to reduce mercury usage, the characteristic was finalized in 1980 was made to § 261.21(a)(1). environmental benefits of removing when EPA promulgated the first phase D. Summary of the Proposed Rule mercury from the workplace, and the of regulations under Subtitle C of RCRA economic benefits from reduced testing to protect human health and the On April 2, 2019, EPA published a costs will result in generators and environment from the improper proposed rule to modernize standards laboratories adopting the new test management of hazardous waste (45 FR for ignitable liquids determinations (84 methods over time. The Agency also FR 12539). EPA proposed to update the 33066, May 19, 1980). These regulations solicited comments from the public on flash point test methods for the included 40 CFR part 261, which whether it would be more appropriate to determination of characteristically defined hazardous waste including the remove the older ASTM standards from ignitable hazardous waste along with ignitability characteristic and the test methods at this time due to their other minor changes. EPA proposed to incorporated two ASTM International required use of mercury thermometers. update required test methods that refer (‘‘ASTM’’) voluntary consensus 2. Air sampling and stack emissions to outdated standards developed by standards by reference as the required requiring mercury thermometers. EPA ASTM and that require instrumentation flash point tests for ignitable liquid proposed to update the SW–846 air that is no longer readily commercially hazardous waste determinations: ASTM sampling and stack emissions test D93–79 (Pensky-Martens) and ASTM available. For example, the standards require the use of mercury methods that presently require the use D3278–78 (Setaflash). In a 1981 of mercury thermometers. These test revision, EPA revised SW–846 Method thermometers, which are becoming more difficult to acquire and calibrate methods are Methods 0010, 0011, 0020, 1010 to allow the use of D93–79 or D93– 0023A, and 0051. The proposed rule 80 (46 FR 35246, July 7, 1981). due to their use and availability being phased out for environmental, health, provided users of these test methods the ASTM standards D3278–78, D93–79, flexibility to use alternative and D93–80 were the test methods and safety concerns. EPA also proposed to remove the requirements for mercury temperature-measuring devices, while available for flash point testing at the still allowing the use of mercury time of the 1980 and 1981 rulemakings. thermometers in the SW–846 air sampling and stack emissions test thermometers. Many of these air Since that time, ASTM has updated D93 sampling and stack emissions test and D3278 multiple times to improve methods. In addition, EPA proposed to codify existing guidance regarding the methods are modifications of, or are the standards and incorporate new similar to, EPA Method 5 of Appendix 1 regulatory exclusion in the ignitability technology. EPA previously proposed A–3 of 40 CFR 60, Determination of to update the flash point test methods characteristic for aqueous liquids containing alcohols and proposed to Particulate Matter Emissions from for ignitability in the 2002 proposed Stationary Sources. For Method 5, EPA Methods Innovation Rule by replacing codify existing sampling guidance regarding waste mixtures having issued the proposed rule ‘‘Revisions to ASTM standard D3278–78 with D3278– Test Methods and Testing Regulations at 96 and ASTM standards D93–79 and multiple phases when determining whether a waste exhibits the ignitability (77 FR 1130, January 9, 2012), and later D93–80 with D93–99c (67 FR 66252, finalized the rule at (79 FR 11228, October 30, 2002). In that proposed rule, characteristic. Finally, EPA proposed to update cross references to DOT February 27, 2014) for the use of EPA also requested comment on alternative mercury-free thermometers if whether D93–00 should instead replace regulations, to remove obsolete information, and make certain technical the thermometers are, at a minimum, D93–79 and D93–80. The public equivalent in terms of performance or commenters raised concerns that the corrections. The specific amendments and corrections proposed by EPA are are suitably effective for the specific sampling procedures of the proposed temperature measurement application. versions of D93 may lead to a loss of summarized below. 1. Flash point test methods. EPA EPA proposed to add similar language, flammable volatile constituents from a proposed to revise 40 CFR 261.21 to where appropriate, in SW–846 Methods sample due to greater headspace in the incorporate by reference ASTM 0010, 0011, 0020, 0023A, and 0051. The sampling container. The Agency made standard D8175–18 as an alternative to removal of the requirement to use the decision to not revise flash point ASTM standards D93–79 and D93–80 in mercury thermometers does not change the underlying technology of the test 1 Method 1010B (Pensky-Martens test The Agency notes that while ASTM standards methods and is not expected to affect are subject to review and revision (a process that method) (84 FR 12539, April 2, 2019). occurs every five years) because the regulation EPA similarly proposed to revise 40 the precision or accuracy of the test incorporates by reference the year-specific version CFR 261.21 to incorporate by reference methods. Therefore, in accordance with of an ASTM standard, the version in the regulation the ASTM standard D8174–18 as an the SW–846 methods policy statement, remains in effect until changed by an EPA action. the test method numbers and letters See 84 FR 12539 for more information about the use alternative to ASTM standard D3278–78 of method-defined parameters. in Method 1020C (Setaflash test EPA uses to identify test methods,

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including subsequent versions, are not alcohol exclusion in 40 CFR 261.21(a)(1) the presence of an ignitable liquid for being revised due to these changes.2 would have no effect on the wastes that do not yield a free liquid 3. Aqueous alcohol exclusion. EPA applicability of the discharge phase using Method 9095 (i.e., Paint proposed to revise the aqueous alcohol prohibitions presented in the Agency’s Filter Liquids Test or PFLT). exclusion in 40 CFR 261.21(a)(1) by Clean Water Act (CWA) national 5. Technical corrections. codifying existing guidance into the pretreatment standards for existing and a. Definition of ignitable compressed regulatory text to clarify the exclusion’s new sources of pollution (40 CFR gas. The Agency also proposed scope. As stated in the proposed rule, 403.5). Section 403.5(b)(1) of the corrections to the ignitable compressed EPA proposed to change the text of the discharge prohibitions addresses waste gas definitions in 40 CFR exclusion from ‘‘other than an aqueous streams with a closed cup flash point of 261.21(a)(3)(ii). EPA proposed to revise solution containing less than 24 percent less than 140 degrees Fahrenheit or 60 40 CFR 261.21(a)(3)(ii)(A) to specify the alcohol by volume’’ to ‘‘other than a degrees Centigrade using the test ASTM standard E 681–85 as the solution containing less than 24 percent methods specified in 40 CFR 261.21 and approved test for determining whether of any alcohol or combination of provides no exemption for aqueous any waste that is a compressed gas alcohols (except if the alcohol has been alcohol solutions (55 FR 30082, July 24, exhibits the RCRA ignitability used for its solvent properties and is one 1990). The Agency’s rationale for not characteristic, and to remove reference of the alcohols specified in EPA exempting aqueous alcohol solutions to the Bureau of Explosives as an Hazardous Waste No. F003 or F005) by under the CWA discharge prohibitions approving agency for sampling and test volume and at least 50 percent water by is explained in the final rule entitled methods. Consistent with the current weight.’’ Specifically, EPA proposed the ‘‘EPA Administered Permit Programs; DOT regulations (49 CFR 173.115), EPA following revisions to the exclusion: (1) the National Pollutant Discharge also proposed to correct its own Replace the undefined term ‘‘aqueous’’ Elimination System; General regulations that reference identifying with ‘‘at least 50 percent water by Pretreatment Regulations for Existing the agency responsible for approving weight’’ and (2) clarify that ‘‘alcohol’’ and New Sources; Regulations To other tests as equivalent for this meant ‘‘any alcohol or combination of Enhance Control of Toxic Pollutant and purpose, by adding the phrase alcohols’’ except for alcohol that had Hazardous Waste Discharges to Publicly ‘‘approved by the Associate ‘‘been used for its solvent properties and Owned Treatment Works’’ (55 FR Administrator, Pipeline and Hazardous is one of the alcohols specified in EPA 30082, July 24, 1990). Thus, EPA’s Materials Safety Administration, U.S. Hazardous Waste No. F003 or F005.’’ proposed revisions to the aqueous Department of Transportation.’’ to 40 These two proposed revisions to the alcohol exclusion in 40 CFR 261.21(a)(1) CFR 261.21(a)(3)(ii). current regulatory text for the aqueous would not change its inapplicability to EPA also proposed to revise 40 CFR alcohol exclusion are contained in 40 CFR 403.5(b)(1). 261.21(a)(3)(ii)(B)–(D) to align with the existing EPA guidance published in the 4. Sampling multiple phase wastes. existing DOT regulations for flammable EPA Monthly Hotline Report, EPA530– EPA proposed to codify its existing gases. The Agency proposed to update R–92–014g (July 1992), pages 3–4. The sampling guidance for multiphase the definition of ignitable compressed Hotline Report states for the purpose of wastes tested for ignitability in 40 CFR gas within 40 CFR 261.21(a)(3)(ii)(B)– the ignitability characteristic in 40 CFR 261.21(a). EPA’s proposed codification (D), by removing references to Bureau of 261.21(a)(1), ‘‘aqueous’’ means a sought to put into regulatory text its Explosives test methods and mirroring solution containing at least 50 percent existing policy on how to properly test the definition and testing that DOT now water by weight. and that the term multiphase wastes containing liquid(s) requires. This change would allow ‘‘alcohol’’ in 40 CFR 261.21(a)(1) refers with or without solids for ignitability generators to determine if their waste to any alcohol or combination of determinations. EPA’s long-standing meets the definition of an ignitable alcohols. EPA also explained in the sampling guidance applies at initial compressed gas by determining if it Hotline Report that, if the alcohol is one generation and during the course of meets the definition of a Division 2.1 of those alcohols specified in EPA normal management of a waste. The flammable gas or a flammable aerosol hazardous waste codes F001–F005 and Agency’s existing guidance explains (see 49 CFR 173.115(a) and (l)). b. Cross-reference to DOT explosives. has been used for its solvent properties, that a generator or laboratory (i.e., those EPA proposed revising 40 CFR the waste must be evaluated to conducting the analysis) should 261.21(a)(4)(i)(A) to replace the determine if it should be classified as an separate multiphase waste samples into currently referenced ‘‘Class A explosive F-listed spent solvent waste.’’ (55 FR all of their different solid and/or liquid or a Class B explosive’’ with ‘‘Division 22543, June 1, 1990.) phases for individual evaluation, to the In the proposed rule, EPA also asked extent practicable. Each separated phase 1.1, 1.2, or 1.3 explosive’’ to be for input on whether any additional should be evaluated individually in consistent with DOT’s revised revisions should be made to the aqueous accordance with 40 CFR 261.21(a) to classification system for explosives (55 alcohol exclusion in 40 CFR 261.21(a)(1) determine whether that phase exhibits FR 52402, December 21, 1990). In 2010, to limit the exclusion to its original the characteristic of ignitability. The EPA incorporated into the RCRA intent. EPA suggested the following Agency’s existing guidance further hazardous waste regulations DOT’s possible revisions to the exclusion: explains that the multiphase waste changes to its classification system for Explicitly identifying specific waste should be tested for flash point as a explosives (75 FR 12989, March 18, streams, narrowing the types of alcohol whole if the individual phases cannot 2010). However, that rulemaking that would qualify, adding a minimum be separated without an appreciable loss overlooked the reference to Class A and alcohol content, and raising the of volatiles such that the ignitability test Class B explosives in 40 CFR minimum water content for aqueous results may be affected. 261.21(a)(4)(i)(A). This proposed change alcohol solutions. Also, EPA noted that In the proposed rule, EPA also corrects that inadvertent omission by any revisions made to the aqueous requested comment on whether updating 40 CFR 261.21(a)(4)(i)(A) with language should be added to Chapter 7 the correct references. 2 See https://www.epa.gov/hw-sw846/policy- of SW–846 as guidance regarding the c. Deletion of notes. EPA also statement-about-test-methods-evaluating-solid- use of the pressure filtration technique proposed to delete the four notes at the waste-physicalchemical-methods. specified in Method 1311 for assessing end of 40 CFR 261.21, which are

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outdated or unnecessary to Appendix IX of 40 CFR part 261 are also methods, such as Method 5. A third understanding the regulation. For being finalized in this action. commenter supported leaving the example, the Bureau of Explosives will 3. Response to comments on waste flexibility to use either mercury or non- no longer be the source for the test determinations with conflicting flash mercury thermometers so that the methods identified in 40 CFR point test results. The Agency clarifies transition to non-mercury thermometers 261.21(a)(3)(ii)(B)–(D), which makes that generators are not required to use can occur over time with normal Note 1 outdated. Notes 2 and 3 provide all of the ASTM standards specified in equipment replacement. unnecessary historical information EPA Methods 1010B and 1020C when 2. Provisions in the final rule. The explaining that the Office of Hazardous making a hazardous waste Agency is finalizing the proposed Materials Technology (OHMT) and the determination on a specific waste, and changes to Methods 0010, 0011, 0020, Research and Special Programs this remains unchanged under this 0023A and 0051 and the proposed Administration (RSPA), respectively, rulemaking. The generator is language incorporating these test ceased operations on February 20, 2005 responsible for making an accurate methods by reference in 40 CFR 260.11 due to a DOT reorganization, and their hazardous waste determination using and 40 CFR part 261 Appendix IX, programs were moved to the Pipeline testing or knowledge of the waste (40 Tables 1 and 2 as proposed and and Hazardous Materials Safety CFR 262.11). If a generator does not discussed above. The changes will allow Administration (PHMSA) in the DOT. have adequate knowledge to complete a the use of non-mercury thermometers or Finally, Note 4, which provides the hazardous waste identification and must mercury thermometers in these source of the definition of an oxidizer in test their waste, the generator should particular test methods, providing 40 CFR 261.21(a)(4), may now be use the test method most appropriate for flexibility. confusing because it references a DOT their waste based on knowledge of the waste. The ASTM standards referenced C. Technical Corrections to 40 CFR regulation as it existed in 1980 rather 261.21 than its current form. within EPA Methods 1010B and 1020C have similar precision and accuracy 1. Summary of the public comments. III. Discussion of the Final Rule and values. In many cases, use of any of the The Agency received several comments Public Comments required test methods will be of broad support for these regulatory appropriate for a hazardous waste A. Flash Point Test Methods changes and no comments opposing determination. The Agency expects that these changes. 1. Summary of the public comments. differences in test method results are 2. Provisions in the final rule. The The majority of public comments more likely to occur due to uniquely Agency is finalizing the proposed supported the Agency’s proposal to add challenging waste forms, differences in changes to 40 CFR 261.21(a)(3) and 40 ASTM standards D8174–18 and D8175– sampling or laboratory practices, or CFR 261.21(a)(4) and deleting the four 18 to 40 CFR 261.21 as new, additional operator experience than with use of the notes at the end of 40 CFR 261.21 as test methods options for flash point different test methods. The Agency will proposed. revisit the required test methods if it is testing of ignitable liquids. Several D. Revised Definition of Aqueous and public commenters requested that the found that inconsistent results occur for specific wastes. Comments on the Aqueous Alcohol Agency also continue to allow use of the Exclusion currently required ASTM standards in In some cases, the generator may be the test methods. Some public able to readily determine one test 1. Summary of the public comments. commenters also asked the Agency to method is more appropriate. In the Public comments on the Agency’s clarify whether results from any of the event that a generator of a waste does proposed revisions to the aqueous required flash point tests giving a determine that multiple test methods alcohol exclusion supported some nonhazardous determination for flash would provide contrasting waste revisions while opposing others. The identifications, the generator should point are conclusive if test results from majority of commenters agreed with and select and rely upon the test method another flash point test would supported the Agency’s proposal to that more accurately characterizes the determine the waste to be hazardous. define ‘‘aqueous’’ within 40 hazards of the waste instead of selecting Commenters presented concerns that if CFR 261.21(a)(1) as ‘‘at least 50 percent all of the test methods. If a generator conflicting test results are possible for a weight by water.’’ No commenters suspects their waste presents unique waste, then the public would be specifically addressed replacing the challenges in identification through required to use all five ASTM standards term alcohol in 40 CFR 261.21(a)(1) with flash point testing, they may benefit referenced in the test methods for a the phrase ‘‘any alcohol or combination from consulting with their authorized waste determination. of alcohols’’ language; however, many state program to avoid excessive testing. commenters opposed the Agency’s 2. Provisions in the final rule. The B. Mercury Thermometer Requirements proposed revision to insert the Agency is finalizing the proposed statement, ‘‘(except if the alcohol has language in 40 CFR 261.21 that updates in Air Sampling and Stack Emissions Methods been used for its solvent properties and Methods 1010A and 1020B to include is one of the alcohols specified in EPA ASTM standards D8175–18 and D8174– 1. Summary of the public comments. Hazardous Waste No. F003 or F005).’’ 18, respectively. This regulation will Public commenters supported the Public commenters expressed concerns retain the three previously required Agency’s proposal to remove mercury that the proposed language created a flash point ASTM standards as part of thermometer requirements from the air new exception to the aqueous alcohol a hazardous waste determination for sampling and stack emissions test exclusion, describing several ignitable liquids. The regulated methods. One commenter provided interpretations of the revised text that community can continue to use the input that this change improves worker differ from the Agency’s intended existing test methods or begin using the safety and reduces costs by avoiding interpretation of the proposed new flash point ASTM standards potential mercury spills and cleanup. A regulatory language.3 Commenters referenced in Methods 1010B and second commenter indicated that 1020C. Updates to cross-referenced replacement of mercury thermometers is 3 See comments from The American Fuel & language in 40 CFR 260.11 and already ongoing with similar test Petrochemical Manufacturers, The Retail

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suggested that one interpretation of the specific changes and allow for public revise the regulations in 40 CFR 261.3(g) proposed regulation was as a new comment before making any other to limit applicability of F003 or F005 exception to the exclusion that would changes to the aqueous alcohol wastes. The Agency clarified in the final bring into regulation F003 spent exclusion other than the replacement of rule implementing 40 CFR 261.3(g) that solvents that are otherwise excluded aqueous with ‘‘at least 50 percent water in the case of wastes listed solely for from the ignitability characteristic as an by weight.’’ ignitability, corrosivity, and reactivity aqueous alcohol. 2. Provisions in the final rule. The that do not exhibit a characteristic at the Commenters also suggested a second Agency is finalizing the revision to point of generation, these wastes are interpretation could be a narrowing of define aqueous as ‘‘at least 50 percent considered to never have been the definition of ‘‘alcohol’’ within the water by weight’’ but is not finalizing hazardous and are not subject to 40 CFR aqueous alcohol exclusion to no longer any other changes to the aqueous part 268. A waste that would otherwise include alcohols in the F003 and F005 alcohol exclusion, including the other be listed for F003 but is excluded at the listing descriptions. A related concern proposed changes to the exclusion. The point of generation due to being an was whether an alcohol used for its regulatory change that is being finalized aqueous alcohol would not be solvent purposes is the same as a spent is specific to the term aqueous within 40 considered ignitable hazardous waste. solvent and whether existing guidance CFR 261.21. Other RCRA regulations Wastes that are characteristic at the on the scope of the spent solvent listings that also use the term aqueous are point of generation and then are applied to both. An additional concern unaffected by this final rule. EPA is not subsequently decharacterized are still within this second interpretation finalizing the proposed changes to the subject to LDR requirements (66 FR involved cases where multiple alcohols definition of alcohol in the alcohol 27266, May 16, 2001). were contained in the aqueous alcohol exclusion because those changes did not With this proposed language, EPA exclusion and whether the waste would provide clarification as EPA intended, had intended to clarify the regulation. be excluded if one alcohol met the F003 as indicated by the comments. The public comments have instead or F005 listing description while a 3. Response to comments that EPA is suggested additional interpretations and second did not. Public commenters also narrowing the exclusion. In proposing to raised additional questions regarding stated that the Agency had provided amend 40 CFR 261.21(a)(1) to include the definition of alcohol and the little to no rationale for narrowing the the language ‘‘except if the alcohol has application of the mixture and derived aqueous alcohol exclusion in the been used for its solvent properties and from rule to the proposed language. As proposed rule. is one of the alcohols specified in EPA a result, the Agency is not finalizing this The public also commented on other Hazardous Waste No. F003 or F005,’’ specific part of the proposed language. potential changes to the aqueous alcohol the Agency had intended to clarify that 4. Response to comments that other exclusion.4 One commenter suggested generators are still responsible to changes may be warranted. The Agency that the Agency should revisit excluded consider relevant listing descriptions requested comments on whether aqueous alcohols that contain a small when making a hazardous waste additional changes to the aqueous concentration of ignitable alcohol and a determination on waste managed under alcohol exclusion may be warranted. large concentration of an ignitable non- the aqueous alcohol exclusion. In One potential change suggested by alcohol component. The commenter particular, the Agency considered it commenters was for the Agency to referred to the original justification for most likely that F003 or F005 wastes consider a lower limit on alcohol the aqueous alcohol exclusion and would most commonly share a waste concentrations eligible for exclusion. suggested adding qualifiers to the code with ignitable aqueous alcohols. It These comments are supported by the regulation consistent with the intended is not EPA’s intent to narrow the rationale and supporting data that scope of the regulation. It was suggested aqueous alcohol waste exclusion. aqueous alcohols in a low enough that the exclusion should not apply if Even though EPA is not finalizing the concentration will not flash below 60 °C the flash point of less than 60 °C (140 language ‘‘except if the alcohol has been due to the alcoholic component alone.6 °F) is attributable solely to the non- used for its solvent properties and is one The Agency agrees with the commenter alcohol component. A commenter also of the alcohols specified in EPA that at very low concentrations of submitted data indicating ethanol and Hazardous Waste No. F003 or F005,’’ alcohol, an aqueous alcohol will not water mixtures will not flash below 4% the Agency notes that generators of flash due to the alcohol alone. ethanol. Commenters also suggested that aqueous alcohol-excluded waste are still Implementing a lower limit to the EPA should implement a sustained responsible for verifying that their waste aqueous alcohol exclusion may work for combustion test to either exclude more does not meet a listing description or simple wastes that only have two waste from regulation or add the test as exhibit other characteristics as part of chemical components but presents a a condition to meet for exclusion as an the regulations for generators of challenge when any number of aqueous alcohol. Another comment hazardous waste (e.g., requirements combinations of alcohols and wastes are suggested that any liquid could be under 40 CFR 262.11). Some considered. Setting a lower limit for excluded if the liquid did not sustain commenters suggested that the Agency’s each and every alcohol and their combustion and met criteria similar to proposed language conflicted with combinations would require further Department of Transportation (DOT) application of 40 CFR 261.3(g). study by the Agency. flammability requirements in 49 CFR Specifically, a commenter raised Commenters also suggested 173.120(a)(3). Other commenters concern that ignitable wastes meeting implementation of a sustained suggested EPA should propose more the F003 listing and meeting the combustion test for the aqueous alcohol exclusion for aqueous alcohols would exclusion. The Agency does not Association, The American Chemistry Council, and have to be managed as F003 despite currently require this by regulation. Stericylce, Inc. EPA–HQ–OLEM–830–0178, –0175, being a decharacterized waste at the However, the Agency notes that the and –0176. point of generation.5 The Agency’s 4 See comments from the Retail Association, public is already capable of utilizing Maryland Department of the Environment, proposed language was not intended to Setricycle. Inc., and The Environmental Technology 6 See comments from the Maryland Department of Council. EPA–HQ–OLEM–2018–0830–0175, –0166, 5 See comments by the American Chemical the Environment. EPA–HQ–OLEM–2018–0830– and –0170. Council. EPA–HQ–OLEM–0830–0166. 0169.

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existing tests for sustained combustion changes discussed in this section and is beverage alcohol or to an aqueous latex as part of their generator knowledge of also interested in the experience of paint. The more a generator’s waste the waste. A generator making a waste authorized state programs that may be diverges from being comparable to a determination using knowledge should implementing the exclusion in a beverage alcohol or latex paint, the more be confident that their determination different manner. Therefore, the Agency carefully a generator should consider would agree with testing requirements is not making any changes at this time whether the waste stream is eligible for under 261.21(a) if tested. Generators can as a result of these comments. The exclusion. For example, in cases where also manage their waste in a more Agency agrees with the commenters that the aqueous liquid waste contains stringent manner. any other changes beyond EPA’s almost no alcohol, EPA does not Additionally, commenters suggested specific proposed language would generally consider that waste to be an that the aqueous alcohol exclusion warrant further discussion and public aqueous alcohol. If a generator is unsure should be modified to be more input, and therefore is not finalizing any whether their specific waste is eligible consistent with the original intent of the other changes based on comments at for exclusion as an aqueous alcohol, exclusion, which was beverage alcohols this time, including replacing ‘‘alcohol’’ they should consult with their and latex paints that do not sustain with ‘‘any alcohol or combination of appropriate regulatory agency to discuss combustion. The alcohol exclusion in alcohols’’ in the regulatory text. Other the specific nature of their waste. 261.21(a)(1) was originally an than finalizing EPA’s proposed language Additionally, state programs authorized incorporation of the aqueous alcohol of ‘‘at least 50 percent water by weight,’’ to implement RCRA may be broader in exclusion already present in DOT the Agency intends to seek additional scope or more stringent in regulations. Since 1980, the DOT has public input before finalizing any other implementation of ignitable liquids and updated their regulations while EPA has changes to the alcohol exclusions aqueous alcohol wastes excluded from issued guidance on its own exclusion. suggested by the public in this ignitability. The DOT exclusion for aqueous alcohols rulemaking. E. Sampling of Multiple Phase Wastes does not apply if another hazardous The Agency maintains that it is material is present.7 In some cases, the ultimately the responsibility of the 1. Summary of the public comments. definition of an aqueous alcohol in the waste generator to make an accurate The Agency’s proposal to codify DOT regulations may be narrower than hazardous waste determination. The existing guidance on sampling multiple the definition of an aqueous alcohol in flash point test method results of less phase wastes received mixed comments, EPA’s regulation that was intended to than 60 °C (140 °F) are definitive results with some commenters supporting and mirror the DOT definition. A waste for a waste determination. A generator others opposing the proposal. One managed under the EPA defined must determine whether their waste is commenter stated support for separating aqueous alcohol exclusion may bear eligible to be excluded from ignitability phases before analyzing as laboratories other hazardous waste codes that would as an aqueous alcohol. When making a already appear to be following this not be excluded from ignitability and determination for eligibility as an procedure. Another commenter stated must be appropriately managed when aqueous alcohol, a generator should that separating phases is appropriate other hazardous materials are present. consider the regulatory language itself and that doing otherwise would provide Alternatively, wastes that meet EPA’s as well as guidance that the agency has inconsistent results. However, that definition of an aqueous alcohol under provided in the past. The Agency has commenter stated that the Agency needs 40 CFR 261.21 but have additional provided guidance in preamble to allow to provide sufficient guidance on how to requirements for packaging and for a broad range of alcohols to be determine if a waste contains multiple handling in order to be made ready for eligible for exemption as an aqueous phases and is therefore subject to transportation may support more alcohol (55 FR 22520, June 1, 1990). The analysis of both phases. The commenter stringent management. The Agency also Agency has also stated through stated, ‘‘It is not clear how much notes that authorized state programs guidance that a solution of seventy separation must occur in a waste for it may be more stringent or broader in seven percent water, thirteen percent to be considered ‘‘multi-phase,’’ and scope on these determinations. alcohol, and ten percent non-alcoholic whether the waste must be capable of Other commenters suggested that if liquid component is eligible for achieving such separation on its own, the Agency were to modify the aqueous exemption.8 without additional processes. Wastes alcohol exclusion beyond the specific A generator must determine whether such as stable emulsions, or small language proposed in this rulemaking, their waste is an aqueous alcohol for the amounts of liquids contained within a then the Agency should first propose purpose of the aqueous alcohol solid would not likely separate on their those changes and provide another exclusion based on testing or knowledge own through normal management opportunity for the public to further of the waste and its properties (see 40 practices and handling time.’’ 10 comment. The suggested changes by the CFR 262.11). The Agency’s existing Other commenters opposed the public warrant further consideration guidances on waste analysis and proposal to require sampling of each due to their scientific and technical sampling may be helpful to generators phase of a multiple phase waste, merits. The aqueous alcohol exclusion in their waste determinations.9 The insisting that EPA’s proposed approach has applicability to a broad category of Agency believes a good indicator for a is too rigid and current guidance allows wastes and changes to the definition of generator that their waste is eligible for for more flexibility in sampling. The alcohol, the concentration of alcohol, or exclusion as an aqueous alcohol is if comments stated, ‘‘For example, the implementation of testing requirements their waste is similar in nature to a Agency’s guidance merely suggests could result in unintended impacts to these actions for particular types of the scope of the exclusion. 8 See July 1992 RCRA/Superfund/OUST/EPCRA mixtures, not all existing and possible The Agency needs to further consider Monthly Hotline Report. EPA–HQ–OLEM–2018– mixtures. EPA’s proposal presumes that 0830–0037. since guidance has suggested both the scope and impacts of the potential 9 Waste Analysis at Facilities that Generate, Treat, Store and Dispose of Hazardous Wastes—Final, phases be separated and tested 7 See Summary of DOT Exemption of Alcoholic EPA 530–R–12–001, April 2015. RCRA Waste Beverages and Aqueous Solutions of Alcohol. EPA– Sampling Draft Technical Guidance, EPA 530–D– 10 See comments from the American Petroleum HQ–OLEM–2018–0830–0163. 02–002, August 2002. Institute. EPA–HQ–OLEM–2018–0830–0168.

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separately under some circumstances, but did not clarify whether the aqueous disposal. This is consistent with the that a requirement to do so for all alcohol exclusion applied.15 fundamental obligation for generators to mixtures would be more beneficial and 2. Provisions in the final rule. After accurately determine whether a waste is would comport with all existing and consideration of the public comments, hazardous under RCRA (as required in future scientific standards.’’ 11 A second EPA is not finalizing the proposed 262.11). commenter expressed similar concerns language for 40 CFR § 261.21(a)(5) as The Agency’s existing guidance on that the Agency proposal should not be part of today’s final action because it sampling and responses to questions interpreted as requiring all phases to be created more confusion, which was the and comments from the public are tested and provided examples of wastes opposite of the Agency’s intent. The discussed below. that were identifiable by analysis of a Agency agrees that some of the issues 3. Response to comments on sampling single phase or through knowledge of described by commenters may not be and analysis. The Agency agrees with the public the waste and identified practical clearly addressed in the specific 12 regulatory text proposed for multiple commenters who indicated that current limitations of testing certain wastes. A practices in analytical laboratories are to third commenter suggested alternative phase sampling. Therefore, the Agency is instead reiterating and clarifying in separate the phases of multiple phase regulatory language for multiple phase preamble the existing Agency guidance wastes and analyze each phase mixtures and asked the Agency to for hazardous waste determinations of separately. The Agency believes the clarify in the preamble that all three ignitable liquids with multiple phases. measurement of the flash point of sampling approaches listed in SW–846 A generator of a waste should multiple phase mixtures within a flash Chapter 2 (Section 2.3.1.5) are allowed. consider the individual liquid phases of point apparatus would present The commenter expressed concern that a multiple phase waste under the significant analytical challenges. In the proposed regulatory language and criteria in 40 CFR § 261.21(a)(1) and responding within this section to the the Agency preamble language were less non-liquid phases of a multiple phase more specific comments and concerns flexible than existing Agency waste under the criteria of 40 CFR raised by public comment, the Agency guidance.13 § 261.21(a)(2) when those liquid or solid is providing guidance on identification One commenter expressed concern phases are representative samples of the of hazardous waste exhibiting the that the proposal was not clear on waste as a whole. A ‘‘representative ignitability characteristic. This guidance whether a multiple phase waste is the sample’’ is defined by regulation (40 may need further consideration before same as mixtures of solid and hazardous CFR 260.10) as ‘‘a sample of a universe application to other characteristic or waste under the hazardous waste or whole (e.g., waste pile, lagoon, listed waste streams. Two concerns raised by the public ‘‘mixture rule’’ in 40 CFR 261.3(a)(2)(iv). ground water) which can be expected to were that the Agency needs to provide The commenter also raised concern that exhibit the average properties of the sufficient guidance on how to determine the preamble indicated that 40 CFR universe or whole.’’ if a waste contains multiple phases and 261.21 only applied to wastes that When determining whether a waste contains multiple phases, the generator when separation of a multiple phase separate on their own and did not apply waste is necessary. When determining if to wastes that can be separated by the should consider the waste’s physical properties during its likely management. a waste contains multiple phases, a generator, for example, by filtration. The generator has to consider the properties comment also raised concerns that the For example, if a waste is generated as one phase but based on the generator’s of the waste as generated and the proposal brought into regulation properties of the waste under the discarded manufactured articles (e.g., a knowledge of the waste is likely to separate from one to two or more liquid conditions that it is likely to encounter few drops of lubricating liquid in a during normal management (e.g., during small mechanical device) that are phases during management (e.g., while stored or during transport), the initial accumulation, storage, transport, primarily non-ignitable solids generator is ultimately responsible for treatment and disposal). A generator containing small amounts of ignitable identifying the characteristics of the should also consider the Paint Filter liquids. The commenter stated that waste at the point of generation and also Liquids Test to be the minimum these discarded manufactured articles through the normal management of the requirement for determining whether a do not meet the EPA definition of a waste. Alternatively, some wastes solid phase waste contains a liquid liquid for ignitable liquids (e.g., through 16 would not normally separate into phase. Therefore, a generator should analysis with the Paint Filter Liquids consider their waste to be a multiple 14 multiple phases during management. In Test. ) these cases, a generator might not find phase waste if at any time during the An additional concern from the it necessary to take measures to separate generation or likely management of the public questioned whether the alcohol the waste even if the waste could waste, a portion is determined by the exclusion as written in 40 CFR separate under certain conditions (e.g., generator to meet the definition of a 261.21(a)(1) was included within the changes in temperature, pressure, or liquid (e.g., as determined visually, by proposed regulatory language of composition) provided these conditions the Paint Filter Liquids Test, or through 261.21(a)(5). That is, the regulatory are unlikely to occur during normal generator knowledge) and also has language of 261.21(a)(5) referenced flash another phase consisting of a solid or a management of the waste. Generators 17 point requirements from 261.21(a)(1) must consider testing and/or knowledge liquid. This includes instances when of individual phases of multiple phase 16 A generator may also determine through 11 See comments from the American Chemistry wastes when any individual phase knowledge that their waste is a liquid or contains Council. EPA–HQ–OLEM–2081–0839–0166. likely exhibits the ignitable a liquid phase. The Agency would also encourage 12 See comments from the Environmental characteristic and therefore may cause the use of other tests such as the Pressure Filtration Technology Council. EPA–HQ–OLEM–2018–0830– the entire waste to pose a risk of fire Procedure within SW–846 Method 1311 if the 0170. generator determines the liquid resulting from 13 See comments from the Coalition for during treatment, storage, and/or pressure filtration more accurately represents their Responsible Waste Incineration. EPA–HQ–OLEM– waste. 2018–0830–0172. 15 See comments from the Coalition for 17 The Agency considers it unlikely that a 14 See comments from the Retail Association. Responsible Waste Incineration. EPA–HQ–OLEM– generator would be able to separate a non-liquid EPA–HQ–OLEM–2018–0830–0175. 2018–0830–0172. Continued

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waste may be generated in stratified analysis of the organic phase is often which some of the phases tend to layers, and multiple samples may need sufficient for identification of a multiple separate rapidly, the percent weight or to be collected using test methods such phase waste containing organic and volume of each phase should be as COLIWASA.18 aqueous phases.19 calculated, and each phase should be The second concern from the In other cases, the multiple phases of individually analyzed for the required commenter relates to when a waste must a waste will not be at equilibrium analytes.’’ The Agency considers that be separated once a generator has made during management of the waste. This when a generator of a waste has a determination that their waste consists presents an analytical challenge as multiple phases that separate rapidly, of multiple phases. The Agency notes multiple phase wastes cannot readily be analysis of each phase may be that in the waste identification process, analyzed in a flash point apparatus appropriate (or, alternatively, may not the generator of a waste can rely on without separating the phases and be necessary if generator knowledge is testing or knowledge of a waste and analyzing each phase separately. A sufficient to characterize the waste). The does not have to test or separate their generator who has separated each phase analysis of each phase provides an waste if knowledge of the waste results for analysis must then determine accurate analysis of the potential in an accurate waste determination. For whether that phase is representative of hazards of the vapor phase generated by example, a generator may determine one the waste as a whole. Attempting to that liquid phase. However, the phase of a waste is hazardous and average (or predict) the vapor phases guidance to measure the weight or manage the entire waste as hazardous generated by multiple phases of a volume of each phase has limited without additional testing of a second chemically complex waste through applicability to determining a flash phase. A generator may also conduct no analysis of individual phases may point or identifying an ignitability testing when there is sufficient present a significant challenge in some hazard. A flash point measurement knowledge of the properties of the waste instances. In situations where a depends upon the concentration of to make a hazardous waste generator has determined that a single ignitable constituents in the vapor phase identification. A generator is not phase of a multiple phase waste is not above a waste. The concentration of required to separate all wastes as a representative of the waste as a whole, constituents in the vapor phase is not normal part of waste management. The the generator should use the results of necessarily linear with the Agency had intended separating in the testing a single phase as part of the concentration of ignitables in the proposed regulatory language to mean knowledge of the waste even though multiple liquid or solid phases. that the generator would be testing of an individual phase alone is Ultimately, the determination made by subsampling a multiple phase waste so not necessarily conclusive for making the generator must consider whether the that each phase was analyzed separately their hazardous waste determination. sample is representative of a waste and in a flash point apparatus. The testing The Agency also agrees with the what hazards are exhibited by the waste. commenters that a subset of mixtures of a waste requires a sample The second of three approaches in should not or do not always require representative of the hazards of the Section 2.3.1.5 states, ‘‘An alternate separation for analysis of each phase. waste. A ‘‘representative sample’’ is approach is to obtain a homogeneous One example is mixtures with a low defined by regulation (40 CFR 260.10) as sample and attempt a single analysis on concentration of a highly volatile, ‘‘a sample of a universe or whole (e.g., the combination of phases. This ignitable constituent. The process of waste pile, lagoon, ground water) which approach will give no information on separating phases using the Paint Filter can be expected to exhibit the average the abundance of the analytes in the Liquids Test may allow the volatile individual phases other than what can properties of the universe or whole.’’ constituents to evaporate and alter the be implied by solubility.’’ The Agency For ignitable liquids, the hazard is flash point test result. The Agency believes this may have some limited exhibited by the vapor phase generated considers wastes that lose a significant applicability with the use of Pensky- from the ignitable liquid. In the context portion of volatile constituents during Martens testing of non-filterable of ignitable liquids, a sample of a waste filtration with the Paint Filter Liquids suspended solids in liquids. If the waste that generates a vapor phase consistent Test to not be separable by this test has a more substantial second phase with the vapor phase generated by the method. than nonfilterable solids, the Agency waste on average would be considered A commenter suggested that the questions how a multiple phase sample representative of the waste as a whole. guidance within Chapter 2 of SW–846 can be homogenized and maintained as In determining when to separate (or allows for broad discretion in choosing one phase inside the flash point subsample) wastes, a generator must to sample one or multiple phases of a apparatus unless the long term behavior consider what sampling strategy will multiple phase sample and asked the of the waste were to be a one phase result in a representative sample or will Agency to better explain the waste. The Agency is concerned this result in knowledge of the potential applicability of this guidance to approach would yield highly hazards exhibited by a representative 20 ignitable liquids. Section 2.3.1.5 inconsistent results due to the analytical sample. In some cases, the individual Multiphase Samples of Chapter 2 challenges of measuring the flash point liquid phases of a multiple phase waste provides three approaches that are of a sample inside a flash point will be in equilibrium with each other applicable to analyzing a sample for the apparatus that would need to equilibrate and will resultingly have the same total concentration of a constituent multiple liquid or solid phases with the vapor phase. In this case a generator where the waste exists in multiple vapor phase at various temperatures. could sample either phase and obtain phases. The Agency has also explained in the the same flash point value. This The first of three approaches in past that if a waste contains filterable scenario is supported by public Section 2.3.1.5 states, ‘‘With a sample in solids, then the solids and liquids must comments explaining that sampling and be separated and then analyzed against 19 See comments from the Environmental the respective criteria for ignitable waste from a second non-liquid waste but does not Technology Council. EPA–HQ–OLEM–2018–0830– 21 prohibit a generator from doing so if it is possible 170. solids and ignitable liquids. and appropriate for their waste management. 20 See comment from the Coalition for 18 See SW–846 Chapter 9. EPA–HQ–OLEM–2018– Responsible Waste Incineration. EPA–HQ–OLEM– 21 See Letter to Mr. Nebrich. EPA–HQ–OLEM– 0830–0162. 2018–0830–0172. 2018–0830–0011.

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The third approach in Section 2.3.1.5 not determined to be a liquid via the Filtration Technique would be states, ‘‘A third alternative is to select Paint Filter Liquids Test. The Agency inconsistent with the Agency’s phases of interest and to analyze only recommends that the generator also rulemaking in 2013 that promulgated those selected phases. This tactic must carefully consider the conditions under exclusions from solid and hazardous be consistent with the sampling/ which their waste is likely to be waste for solvent-contaminated wipes analysis objectives or it will yield managed and any other characteristics (see 78 FR 46448). Commenters also insufficient information for the time and or listings that may apply. suggested that because the 2013 resources expended. The phases Taking into account the confusion rulemaking provided guidance to use selected should be compared with caused by the Agency’s proposal to the Paint Filter Liquids Test for no free Figure 21 and Table 241[in SW–846 codify existing guidance for multiple liquids, the 2013 rulemaking guidance Chapter 2] for further guidance.’’ The phase mixtures into regulation, the would take precedence over any new Agency generally agrees with this Agency has decided not to finalize the guidance. approach when combined with proposed language for 40 CFR The Agency notes that the 2013 final generator knowledge of the waste. For 261.21(a)(5) at this time. The discussion rule for solvent-contaminated wipes example, a generator may make a in this preamble clarifies the Agency’s provided guidance in preamble that determination through knowledge that position regarding testing of multiple generators should use the Paint Filter an aqueous phase does not exhibit phases of a waste. Individual phases of Test to determine no free liquids for ignitability but rely on flash point a multiple phase waste that exhibit solvent contaminated wipes under the testing to determine whether an organic ignitability and are representative of the finalized exclusions. The Agency phase of the same waste exhibits multiple phase waste are subject to considered whether a list of solvent ignitability. evaluation under the criteria in 40 CFR extraction technologies might be more Therefore, EPA believes that the 261.21(a)(1) or 40 CFR 261.21(a)(2). appropriate than a test to determine no sampling approaches outlined in Generators of multiple phases wastes free liquids and also considered the Section 2.3.1.5, while providing useful where either phase is identified as multiple tests state agencies were guidance in certain circumstances, have exhibiting the characteristic of already using to verify compliance with limitations, as described. Ultimately, the ignitability would be required to the ‘‘no free liquids’’ conditions. The sampling approach should be designed manage the entire waste as hazardous Agency was aware that the majority of to obtain a representative sample of a waste. A sample from a multiple phase the state agencies required the Paint waste or to provide additional waste that is not representative of the Filter Liquids Tests and clarified that for knowledge of the waste when an waste as a whole is not always the 2013 rulemaking, ‘‘EPA is using the individual sample does not wholly conclusive for a waste identification. Paint Filter Liquids Test for determining represent the hazards of a waste. The Agency notes that 40 CFR 261.21(a) whether solvent-contaminated wipes The same commenter also raised identifies waste based on the properties contain free liquids.’’ The Agency also concerns over what the Agency of a representative sample and that considered to be a separated waste and generators of a waste remain able to noted that authorized state programs are whether a separation must occur by the complete a waste identification through able to define ‘‘no free liquids’’ waste itself or whether a generator must testing or knowledge. Testing of a waste differently provided they are no less attempt to force separation. This may or may not require analysis of all stringent. The Agency provided this concern included the potential phases to complete a hazardous waste guidance via rulemaking within the application of the ignitable liquids determination. scope of solvent-contaminated wipes criteria to manufactured articles eligible for exclusion under 261.4(a)(26) containing minute amounts of ignitable F. Pressure Filtration and Ignitable or 261.4(b)(18). liquid. The commenter indicated that Liquids The universe of ignitable liquids the waste would not yield a liquid when In the proposed rule, EPA requested wastes is broader than the universe of tested with the Paint Filter Liquids Test. comment on whether the Agency should solvent-contaminated wipes. The The Agency does not consider the revisit adding language to Chapter 7 of Agency expects some wastes are better public comment to be sufficiently SW–846 as guidance regarding the use represented by the pressure filtration detailed to make a broad hazardous of the Pressure Filtration Technique procedure within EPA Method 1311 or waste determination for all (PFT) specified in Method 1311 for by other analysis and requested manufactured articles containing small assessing the presence of an ignitable comment regarding the use of Pressure amounts of liquid. In this scenario, if a liquid for wastes that do not yield a free Filtration Technique and Paint Filter generator has determined that their liquid phase using Method 9095 (i.e., Liquids Test since it was interested in waste yields no liquid when subject to Paint Filter Liquids Test or PFLT). learning from the experiences of the the Paint Filter Liquids Test, then that Currently, generators may rely on the generators and regulators who have waste is likely not subject to the Paint Filter Liquids Test if they are been identifying ignitable hazardous ignitable liquids regulation. separating a liquid from a solid for waste under the existing program. In some limited situations, a waste subsequent analysis. A generator may However, for most wastes that are not may present as a liquid in nature but not also be aware that a waste contains readily apparent to be a liquid through pass through a paint filter due to multiple phases through knowledge, observation, the Agency believes the viscosity or due to oversized testing, or visual observation. In these Paint Filter Liquids Test is an particulates preventing flow through cases, a generator may sample appropriate analysis. As noted by other pores. In these situations, the Agency individual phases without having to commenters, the Agency clarified in recommends that the generator consider apply the Paint Filter Liquids Test. For 1995 that the Paint Filter Liquids Test the possibility to decant, pipette, or use example, a generator may be able to is the minimum testing requirement to other physical means to collect a pipette, decant, pump, or use a determine that a waste has no free sample. Additionally, a generator would COLIWASA apparatus to obtain a liquids.22 Commenters also noted that also be required to consider the representative sample of the phase(s). identification of ignitable non-liquids Several commenters raised concerns 22 See Letter from David Brussard. EPA–HQ– under 261.21(a)(2) when materials are that the application of the Pressure OLEM–0830–0039.

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some wastes may present difficulties in The Agency is incorporating by Appendix IX to part 261. The Agency is being pressure filtered, such as liquid reference SW–846 Method 1010B, SW– incorporating by reference Method wastes with fine particles that prevent 846 Method 1020C, ASTM D8174–18, 0023A into § 260.11(c)(3)(ix), Appendix filtering or other hard to manage ASTM D8175–18, and ASTM E681–85 IX to part 261, and Appendix IX to part wastes.23 Wastes that readily flow and into § 261.21 and as applicable into 266. The Agency is incorporating by take the shape of their container may Appendix IX to part 261. SW–846 reference Method 0051 into not readily filter but may still be Method 1010B and SW–846 Method § 260.11(c)(3)(xiii), Appendix IX to part identified as ignitable liquids. The 1020C list the required methods to 261, § 266.107(f), and Appendix IX to Agency is taking no final action specific determine flashpoint for ignitable part 266. The finalization of the to the application of the Pressure hazardous waste. SW–846 Method proposed incorporation by reference of Filtration Procedure in this rulemaking. 1010B lists the Pensky-Martens flash the above test methods is as described point methods, which are ASTM G. Additional Conforming Amendments in the proposed rule and as discussed in Standards D93–79, D93–80, and D8175– Section III above. The Agency has become aware that 18. SW–846 Method 1020C lists the The ASTM standards incorporated by several additional conforming Setaflash (small-scale) closed cup flash reference are available for purchase amendments to the regulations in Parts point methods, which are the ASTM from ASTM International, 100 Barr 63, 260, and 278 are necessary. Standards D3278–78 and D8174–18. Harbor Drive, P.O. Box C700, West Consistent with the other conforming ASTM D8174–18 is a test method to Conshohocken, PA 19428–2959, amendments that EPA had proposed determine the flash point of liquid www.astm.org, call 877–909–2786. The and is finalizing today, EPA is also wastes using a small-scale (Setaflash) SW–846 Test Methods incorporated by finalizing these additional conforming apparatus. ASTM D8175–18 is a test reference are published in the test amendments. method used to determine the flash methods compendium known as ‘‘Test 1. 40 CFR 63. Part 63 incorporates point of liquid wastes using a Pensky- Methods for Evaluating Solid Waste, Method 0023A by reference in 40 CFR Martens apparatus. ASTM E681–85 is a Physical/Chemical Methods,’’ EPA 63.14 and 40 CFR 63.1208. As the test method used to determine the upper Publication SW–846, Third Edition, Agency has updated Method 0023A to and lower concentration limits of which can be found at https:// allow for alternatives to mercury flammability for chemicals having www.epa.gov/hw-sw846. thermometer usage in this rule, failing sufficient vapor pressure to form V. State Authorization to update the reference in Part 63 would flammable mixtures with air. require the continued use of mercury The Agency is also incorporating by A. Applicability of Final Rule in thermometers when using Method reference SW–846 Test Methods 0010, Authorized States 0023A to meet testing requirements in 0011, 0020, 0023A, and 0051. SW–846 Part 63. Under section 3006 of RCRA, EPA Method 0010 is a sampling method for may authorize qualified states to 2. 40 CFR 260.11. EPA is making non- collection of gaseous and particulate substantive amendments to the administer and enforce the RCRA pollutants from an emission source. hazardous waste program within the centralized incorporated by reference SW–846 Method 0011 is a method for section in part 260 for conformity with state. Following authorization, EPA collection of selected ketones and retains enforcement authority under 1 CFR 51. EPA is revising part 260 such aldehydes from an emission source. that the test methods identified in 40 sections 3008, 3013, and 7003 of RCRA, SW–846 Method 0020 is a method to although authorized states have primary CFR 260.11 are listed alphabetically and collect gaseous and particulate numerically and the language enforcement responsibility. The pollutants from an emission source and standards and requirements for state explaining incorporation by reference in into a multicomponent sampling train. 40 CFR 260.11(a) is updated to meet authorization are found at 40 CFR part SW–846 Method 0023A is a method for 271. Prior to enactment of the current style and formatting collection of polychlorinated dibenzo-p- requirements of the Federal Register. Hazardous and Solid Waste dioxins and polychlorinated Amendments of 1984 (HSWA), a state 3. 40 CFR 278. Additionally, the dibenzofuran from an emission source. incorporation by reference of Method with final RCRA authorization SW–846 Method 0051 is a method for administered its hazardous waste 1312 into the regulations at 40 CFR collection of hydrogen chloride and 278.3(b)(1) should now be located in 40 program entirely in lieu of EPA chlorine in stack gas emission samples administering the federal program in CFR 260.11 to meet style and formatting from hazardous waste incinerators and requirements of the Federal Register. that state. The federal requirements no combustors. The Agency is longer applied in the authorized state, IV. Incorporation by Reference incorporating by reference Method 0010 and EPA could not issue permits for any The Methods Innovation Rule, which into § 260.11(c)(3)(i), Appendix IX to facilities in that state, since only the was finalized on June 14, 2005, revised part 261, and Appendix IX to part 266. state was authorized to issue RCRA 40 CFR 260.11 to remove the The Agency is incorporating by permits. When EPA promulgated new, incorporation by reference of all SW– reference Method 0011 into more stringent federal requirements for 846 test methods except those SW–846 § 260.11(c)(3)(viii), Appendix IX to part these pre-HSWA regulations, the state test methods that are also regulatory 261, and Appendix IX to part 266. The was obligated to enact equivalent required method-defined parameters Agency is incorporating by reference authorities within specified time frames. under the RCRA regulations and thus, Method 0020 into § 260.11(c)(3)(ii) and However, the new federal requirements can only be amended through a did not take effect in an authorized 24 mandatory purposes. For example, the Pensky- state, until the state adopted the federal regulatory effort. Martens method described in Method 1010A could also be used as part of quality control to test a requirements as state law. In contrast, 23 See comments by the Environmental product for purity, which is unrelated to § 261.21 under RCRA section 3006(g) (42 U.S.C. Technology Council. EPA–HQ–OLEM–2018–0830– and, otherwise, not required under RCRA. In this 6926(g)), which was added by HSWA, 0170 case, the test method would not be a method- new requirements and prohibitions 24 It is important to note that while a test method defined parameter. In order to be a method-defined listed in § 260.11 is a method-defined parameter, parameter, a test method must be part of a imposed under HSWA authority take that test method also may be used for non- regulatory requirement under RCRA. effect in authorized states at the same

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time that they take effect in A. Executive Order 12866: Regulatory EPA does not expect the rule to result unauthorized states. EPA is directed by Planning and Review and Executive in an adverse impact to a significant the statute to implement these Order 13563: Improving Regulation and number of small entities. For requirements and prohibitions in Regulatory Review commercial labs, the analysis presented authorized states, including the This action is not a significant in Chapter 3 indicates either no change issuance of permits, until the state is regulatory action and was therefore not in costs or a cost savings, due to the granted authorization to do so. While submitted to the Office of Management flexibility afforded by the rule. states must still adopt HSWA related and Budget (OMB) for review under Therefore, out of the 128 firms defined provisions as state law to retain final Executive Orders 12866 (58 FR 51735, as small under the Small Business authorization, EPA implements the October 4, 1993) and 13563 (76 FR 3821, Administration size standards, no firms HSWA provisions in authorized states January 21, 2011). have costs greater than one percent of until the states do so. annual revenues. EPA has therefore B. Executive Order 13771: Reducing concluded that this action will either Authorized states are required to Regulations and Controlling Regulatory relieve regulatory burden or have no net modify their programs only when EPA Costs regulatory burden for all directly enacts federal requirements that are This action is a deregulatory action as regulated small entities. more stringent or broader in scope than specified in Executive Order 13771 (82 existing federal requirements.25 RCRA FR 9339, February 3, 2017). Details on E. Unfunded Mandates Reform Act section 3009 allows the states to impose the estimated cost savings of the final (UMRA) standards more stringent than those in rule can be found in EPA’s Regulatory As documented in the Regulatory the federal program (see also 40 CFR Impact Analysis of the Modernization of Impact Analysis of the Modernization of 271.1). Therefore, authorized states may, Ignitable Liquid Determination Rule, Ignitable Liquid Determinations Rule but are not required to, adopt federal which is in the docket. found in the docket for the final rule, regulations, both HSWA and non- C. Paperwork Reduction Act (PRA) this action does not contain an HSWA, that are considered less According to PRA, 44 U.S.C. 3501 et unfunded mandate of $100 million or stringent than previous federal seq., an agency may not conduct or more as described in UMRA, 2 U.S.C. regulations. sponsor, and a person is not required to 1531–1538, and does not significantly or uniquely affect small governments. B. Effect on State Authorization respond to a collection of information that requires OMB approval under the F. Executive Order 13132: Federalism Today’s notice finalizes regulations PRA, unless it has been approved by that would not be promulgated under OMB and displays a currently valid This action does not have ‘‘federalism the authority of HSWA. Thus, the OMB control number. The OMB control implications’’ as that term is defined in standards would be applicable on the numbers for EPA’s regulations in Title Executive Order 13132 (64 FR 43255, effective date only in those states that 40 of the CFR, after appearing in the August 10, 1999). It will not have do not have final authorization of their Federal Register, are listed in 40 CFR substantial direct effects on the states, base RCRA programs. Moreover, part 9, and included on the related on the relationship between the national authorized states are required to modify collection instrument, or form, as government and the states, or on the their programs only when EPA applicable. This action does not impose distribution of power and promulgates federal regulations that are any burden requiring additional OMB responsibilities among the various more stringent or broader in scope than approval because it neither imposes levels of government. the authorized state regulations. For new paperwork requirements nor amends existing paperwork G. Executive Order 13175: Consultation those changes that are less stringent, requirements. Burden is defined in 5 and Coordination With Indian Tribal states are not required to modify their CFR 1320.3(b). OMB previously Governments programs. This is a result of section approved the information collection 3009 of RCRA, which allows states to This action does not have tribal activities contained in the existing implications as specified in Executive impose more stringent regulations than regulations and assigned OMB control the federal program. Order 13175. The final rule is not numbers 2050–0053 and 2050–0073. expected to result in any adverse The revisions to these test methods D. Regulatory Flexibility Act (RFA) impacts on tribal entities. Thus, are considered to be neither more nor I certify that this action will not have Executive Order 13175 does not apply less stringent than the existing test to this rule. methods. Thus, authorized states may, a significant economic impact on a but are not required to, adopt these substantial number of small entities H. Executive Order 13045: Protection of under the RFA, 5 U.S.C. 601 et seq. In changes. Children From Environmental Health making this determination, the impact Risks and Safety Risks VI. Statutory and Executive Order of concern is any significant adverse (E.O.) Reviews economic impact on small entities. An EPA interprets Executive Order 13045 agency may certify that a rule will not as applying only to those regulatory Additional information about these have a significant economic impact on actions that concern environmental statutes and Executive Orders can be a substantial number of small entities if health or safety risks that EPA has found at https://www.epa.gov/laws- the rule relieves regulatory burden, has reason to believe may regulations/laws-and-executive-orders. no net burden or otherwise has a disproportionately affect children, per positive economic effect on the small the definition of ‘‘covered regulatory entities subject to the rule. As action’’ in section 2–202 of the 25 EPA notes that decisions regarding whether a documented in the Regulatory Impact Executive Order. This action is not state rule is more stringent or broader in scope than Analysis of the Modernization of subject to Executive Order 13045 the federal program are made when the Agency Ignitable Liquid Determinations Rule because it does not concern an authorizes a state program for a particular rule. found in the docket for this final rule, environmental health risk or safety risk.

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I. Executive Order 13211: Actions 40 CFR Part 260 (i) Method 0023A, ‘‘Sampling Method Concerning Regulations That Environmental protection, Hazardous for Polychlorinated Dibenzo-p-Dioxins Significantly Affect Energy Supply, waste, Incorporation by reference. and Polychlorinated Dibenzofuran Distribution or Use Emissions from Stationary Sources,’’ This action is not subject to Executive 40 CFR Part 261 Revision 2, dated August 2018, IBR Order 13211, because it is not a Environmental protection, Hazardous approved for § 63.1208(b). significant regulatory action under waste, Incorporation by reference, * * * * * Executive Order 12866. Recycling. PART 260—HAZARDOUS WASTE J. National Technology Transfer and 40 CFR 278 MANAGEMENT SYSTEM: GENERAL Advancement Act (NTTAA) Environmental protection, ■ This action involves technical Incorporation by reference. 3. The authority citation for part 260 standards. EPA is adopting the use of continues to read as follows: Andrew Wheeler, ASTM D8175–18 and ASTM D8174–18. Authority: 42 U.S.C. 6905, 6912(a), 6921– These test methods were adopted by Administrator. 6927, 6930, 6934, 6935, 6937, 6938, 6939, ASTM in March 2018. These standards For the reasons set forth in the and 6974. are available for purchase from ASTM preamble, title 40, chapter I, of the Code ■ 4. Revise § 260.11 to read as follows: International, 100 Barr Harbor Drive, of Federal Regulations is amended as P.O. Box C700, West Conshohocken, PA follows: § 260.11 Incorporation by reference. 19428–2959. EPA worked with ASTM to When used in parts 260 through 268 PART 63—NATIONAL EMISSION specifically develop these consensus- of this chapter, the following materials STANDARDS FOR HAZARDOUS AIR based standards to better suit waste are incorporated by reference with the POLLUTANTS FOR SOURCE testing by modifying existing ASTM approval of the Director of the Federal CATEGORIES standards. EPA worked with a member Register under 5 U.S.C. 552(a) and 1 of the ASTM D02.08 Subcommittee ■ 1. The authority citation for part 63 CFR part 51. All approved materials are (who also represents Stanhope-Seta) to continues to read as follows: available for inspection at the OLEM modify existing ASTM methods D93–16 Docket in the Environmental Protection and D3828–16a, which were developed Authority: 42 U.S.C. 7401 et seq. Agency Docket Center (EPA/DC), West by the ASTM D02.08 Subcommittee. ■ 2. Amend § 63.14 by revising the William Jefferson Clinton Bldg., Rm. These new draft test methods were then paragraph (a) and paragraph (q)(2)(i) to 3334, 1301 Constitution Ave. NW, submitted to ASTM’s review process read as follows: Washington, DC. The EPA/DC Public and were approved by the ASTM D34 Reading Room hours of operation are Committee to become new ASTM test § 63.14 Incorporations by reference. 8:30 a.m. to 4:30 p.m., Monday through methods. (a) The materials listed in this section Friday, excluding legal holidays. The are incorporated by reference into this telephone number of the EPA/DC Public K. Executive Order 12898: Federal part with the approval of the Director of Reading room is (202) 566–1744, and Actions To Address Environmental the Federal Register under 5 U.S.C. the telephone number for the OLEM Justice in Minority Populations and 552(a) and 1 CFR part 51. To enforce Docket is (202) 566–0270. These Low-Income Populations any edition other than that specified in approved materials are also available for EPA believes that this action does not this section, a document must be inspection at the National Archives and have disproportionately high and published in the Federal Register and Records Administration (NARA). For adverse human health or environmental the material must be available to the information on the availability of this effects on minority populations, low- public. All approved materials are material at NARA, email fedreg.legal@ income populations and/or indigenous available for inspection at the Air and nara.gov or go to www.archives.gov/ peoples, as specified in Executive Order Radiation Docket and Information federal-register/cfr/ibr-locations.html. In 12898 (59 FR 7629, February 16, 1994). Center (Air Docket) in the EPA Docket addition, these materials are available The final rule modernizes testing and Center (EPA/DC) at Rm. 3334, EPA West from the following sources: codifies guidance for the Bldg., 1301 Constitution Ave. NW, (a) American Petroleum Institute characterization of ignitable hazardous Washington, DC. The EPA/DC Public (API). 1220 L Street Northwest, waste; it does not affect the disposal of Reading Room hours of operation are Washington, DC 20005, (855) 999–9870, such waste. Therefore, the final rule is 8:30 a.m. to 4:30 p.m., Monday through www.api.org. not expected to result in any adverse Friday, excluding legal holidays. The (1) API Publication 2517, Third human health or environmental effects telephone number of the EPA/DC Public Edition, February 1989, ‘‘Evaporative on minority populations, low-income Reading Room is (202) 566–1744, and Loss from External Floating-Roof populations and/or indigenous peoples. the telephone number for the Air Docket Tanks,’’ IBR approved for § 265.1084. is (202) 566–1742. These approved L. Congressional Review Act (CRA) (2) [Reserved] materials are also available for (b) ASTM International (ASTM). 100 This action is subject to the CRA, and inspection at the National Archives and Barr Harbor Drive, P.O. Box C700, West the EPA will submit a rule report to Records Administration (NARA). For Conshohocken, PA 19428–2959, (877) each House of the Congress and to the information on the availability of this 909–ASTM, www.astm.org. Comptroller General of the United material at NARA, email fedreg.legal@ (1) ASTM D93–79, ‘‘Standard Test States. This action is not a ‘‘major rule’’ nara.gov or go to www.archives.gov/ Methods for Flash Point by Pensky- as defined by 5 U.S.C. 804(2). federal-register/cfr/ibr-locations.html. In Martens Closed Cup Tester,’’ IBR List of Subjects addition, these materials are available approved for § 261.21(a). from the following sources: (2) ASTM D93–80, ‘‘Standard Test 40 CFR Part 63 * * * * * Methods for Flash Point by Pensky- Environmental protection, (q) * * * Martens Closed Cup Tester,’’ IBR Incorporation by reference. (2) * * * approved for § 261.21(a).

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(3) ASTM D1946–82, ‘‘Standard (1) ‘‘APTI Course 415: Control of approved for appendix IX to part 261, Method for Analysis of Reformed Gas by Gaseous Emissions,’’ EPA Publication § 266.107, and appendix IX to part 266. Gas Chromatography,’’ IBR approved for EPA–450/2–81–005, December 1981, (ix) Method 0051, Midget Impinger §§ 264.1033 and 265.1033. IBR approved for §§ 264.1035 and HCl/Cl2 Emission Sampling Train, (4) ASTM D2267–88, ‘‘Standard Test 265.1035. Revision 1, dated August 2018, IBR Method for Aromatics in Light Naphthas (2) Method 1664, n-Hexane approved for appendix IX to part 261, and Aviation Gasolines by Gas Extractable Material (HEM; Oil and § 266.107, and appendix IX to part 266. Chromatography,’’ IBR approved for Grease) and Silica Gel Treated n-Hexane (x) Method 0060, Determination of § 264.1063. Extractable Material SGT–HEM; Non- Metals in Stack Emissions, dated (5) ASTM D2382–83, ‘‘Standard Test polar Material) by Extraction and December 1996 and in Update III, IBR Method for Heat of Combustion of Gravimetry: approved for appendix IX to part 261, Hydrocarbon Fuels by Bomb (i) Revision A, EPA–821–R–98–002, § 266.106, and appendix IX to part 266. Calorimeter (High-Precision Method),’’ February 1999, IBR approved for (xi) Method 0061, Determination of IBR approved for §§ 264.1033 and appendix IX to part 261. Hexavalent Chromium Emissions from 265.1033. (ii) Revision B, EPA–821–R–10–001, Stationary Sources, dated December (6) ASTM D2879–92, ‘‘Standard Test February 2010, IBR approved for 1996 and in Update III, IBR approved Method for Vapor Pressure— appendix IX to part 261. for appendix IX to part 261 § 266.106, Temperature Relationship and Initial (3) ‘‘Screening Procedures for and appendix IX to part 266. Decomposition Temperature of Liquids Estimating the Air Quality Impact of (xii) Method 1010B, Test Methods for by Isoteniscope,’’ IBR approved for Stationary Sources, Revised’’, October Flash Point by Pensky-Martens Closed- § 265.1084. 1992, EPA Publication No. EPA–450/R– Cup Tester, dated December 2018, IBR (7) ASTM D3278–78, ‘‘Standard Test 92–019, IBR approved for appendix IX approved for § 261.21 and appendix IX Methods for Flash Point for Liquids by to part 266. to part 261. Setaflash Closed Tester,’’ IBR approved (4) The following methods as (xiii) Method 1020C, Standard Test for § 261.21(a). published in the test methods Methods for Flash Point by Setaflash (8) ASTM D8174–18 ‘‘Standard Test compendium known as ‘‘Test Methods (Small Scale) Closed-Cup Apparatus, Method for Finite Flash Point for Evaluating Solid Waste, Physical/ dated December 2018, IBR approved for Determination of Liquid Wastes by Chemical Methods,’’ EPA Publication § 261.21 and appendix IX to part 261. Small Scale Closed Cup Tester.’’ SW–846, Third Edition. (xiv) Method 1110A, Corrosivity (i) Method 0010, Modified Method 5 Approved March 15, 2018, IBR Toward Steel, dated November 2004 Sampling Train, Revision 1, dated approved for § 261.21(a). and in Update IIIB, IBR approved for August 2018, IBR approved for (9) ASTM D8175–18 ‘‘Standard Test § 261.22 and appendix IX to part 261. appendix IX to part 261. Method for Finite Flash Point (ii) Method 0011, Sampling for (xv) Method 1310B, Extraction Determination of Liquid Wastes by Selected Aldehyde and Ketone Procedure (EP) Toxicity Test Method Pensky-Martens Closed Cup Tester.’’ Emissions from Stationary Sources, and Structural Integrity Test, dated Approved March 15, 2018, IBR Revision 1, dated August 2018, IBR November 2004 and in Update IIIB, IBR approved for § 261.21(a). approved for appendix IX to part 261 approved for appendix IX to part 261. (10) ASTM E168–88, ‘‘Standard and appendix IX to part 266 (xvi) Method 1311, Toxicity Practices for General Techniques of (iii) Method 0020, Source Assessment Characteristic Leaching Procedure, Infrared Quantitative Analysis,’’ IBR Sampling System (SASS), Revision 1, dated July 1992 and in Update I, IBR approved for § 264.1063. dated August 2018, IBR approved for approved for appendix IX to part 261, (11) ASTM E169–87, ‘‘Standard appendix IX to part 261. and §§ 261.24, 268.7, 268.40. Practices for General Techniques of (iv) Method 0023A, Sampling Method (xvii) Method 1312, Synthetic Ultraviolet-Visible Quantitative for Polychlorinated Dibenzo-p-Dioxins Precipitation Leaching Procedure, dated Analysis,’’ IBR approved for § 264.1063. and Polychlorinated Dibenzofuran September 1994 and in Update III, IBR (12) ASTM E260–85, ‘‘Standard Emissions from Stationary Sources, approved for appendix IX to part 261. Practice for Packed Column Gas Revision 2, dated August 2018, IBR (xviii) Method 1320, Multiple Chromatography,’’ IBR approved for approved for appendix IX to part 261, Extraction Procedure, dated September § 264.1063. § 266.104(e), and appendix IX to part 1986 and in the Basic Manual, IBR (13) ASTM E681–85 ‘‘Standard Test 266. approved for appendix IX to part 261. Method for Concentration Limits of (v) Method 0030, Volatile Organic (xix) Method 1330A, Extraction Flammability of Chemicals (Vapors and Sampling Train, dated September 1986 Procedure for Oily Wastes, dated July gases),’’ Approved November 14, 1985, and in the Basic Manual, IBR approved 1992 and in Update I, IBR approved for IBR approved for § 261.21(a). for appendix IX to part 261. appendix IX to part 261. (c) Environmental Protection Agency (vi) Method 0031, Sampling Method (xx) Method 9010C, Total and (EPA). Material cited in paragraphs for Volatile Organic Compounds Amenable Cyanide: Distillation, dated (d)(1) through (3) is available from: (SMVOC), dated December 1996 and in November 2004 and in Update IIIB, IBR National Technical Information Service, Update III, IBR approved for appendix approved for appendix IX to part 261 5285 Port Royal Road, Springfield, VA IX to part 261. and §§ 268.40, 268.44, 268.48. 22161; the Superintendent of (vii) Method 0040, Sampling of (xxi) Method 9012B, Total and Documents, U.S. Government Printing Principal Organic Hazardous Amenable Cyanide (Automated Office, Washington, DC 20402, (202) Constituents from Combustion Sources Colorimetric, with Off-Line Distillation), 512–1800; EPA’s National Service Using Tedlar® Bags, dated December dated November 2004 and in Update Center for Environmental Publications 1996 and in Update III, IBR approved IIIB, IBR approved for appendix IX to at https://www.epa.gov/nscep. Material for appendix IX to part 261. part 261 and §§ 268.40, 268.44, 268.48. cited in paragraph (d)(4) of this section (viii) Method 0050, Isokinetic HCl/Cl2 (xxii) Method 9040C, pH is available at https://www.epa.gov/hw- Emission Sampling Train, dated Electrometric Measurement, dated sw846. December 1996 and in Update III, IBR November 2004 and in Update IIIB, IBR

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approved for appendix IX to part 261 ■ a. Revising paragraphs (a)(1), (3)(ii), ‘‘1010B’’ in its place, wherever it and § 261.22. (4) introductory text, and (4)(i)(A), and appears (56 occurrences); and removing (xxiii) Method 9045D, Soil and Waste (D); and the text ‘‘1020B’’ and adding ‘‘1020C’’ in pH, dated November 2004 and in ■ b. Removing Notes 1, 2, 3, and 4. its place, wherever it appears (56 Update IIIB, IBR approved for appendix The revisions read as follows: occurrences). IX to part 261. § 261.21 Characteristic of ignitability. PART 278—CRITERIA FOR THE (xxiv) Method 9060A, Total Organic MANAGEMENT OF GRANULAR MINE Carbon, dated November 2004 and in (a) * * * TAILINGS (CHAT) IN ASPHALT Update IIIB, IBR approved for appendix (1) It is a liquid, other than a solution CONCRETE AND PORTLAND CEMENT IX to part 261, and §§ 264.1034, containing less than 24 percent alcohol CONCRETE IN TRANSPORTATION 264.1063, 265.1034, 265.1063. by volume and at least 50 percent water by weight, that has a flash point less CONSTRUCTION PROJECTS FUNDED (xxv) Method 9070A, n-Hexane than 60 °C (140 °F), as determined by IN WHOLE OR IN PART BY FEDERAL Extractable material (HEM) for Aqueous using one of the following ASTM FUNDS Samples, dated November 2004 and in standards: ASTM D93–79, D93–80, Update IIIB, IBR approved for appendix ■ D3278–78, D8174–18, or D8175–18 as 8. The authority citation for part 278 IX to part 261. specified in SW–846 Test Methods continues to read as follows: (xxvi) Method 9071B, n-Hexane 1010B or 1020C (all incorporated by Authority: 42 U.S.C. 6961 et seq. Extractable Material (HEM) for Sludge, reference, see § 260.11 of this ■ 9. Amend § 278.3 by revising Sediment, and Solid Samples, dated subchapter). April 1998 and in Update IIIA, IBR paragraph (b)(1) and adding paragraph approved for appendix IX to part 261. * * * * * (d) to read as follows: (3) * * * (xxvii) Method 9095B, Paint Filter (ii) A compressed gas shall be § 278.3 Criteria for use of chat in Federally Liquids Test, dated November 2004 and characterized as ignitable if any one of funded transportation projects. in Update IIIB, IBR approved, appendix the following occurs: * * * * * IX to part 261, and §§ 264.190, 264.314, (A) Either a mixture of 13 percent or (b) * * * 265.190, 265.314, 265.1081, 267.190(a), less (by volume) with air forms a (1) Synthetic Precipitation Leaching 268.32. flammable mixture or the flammable Procedure (SPLP) tests are conducted on (d) National Fire Protection range with air is wider than 12 percent the proposed material using EPA SW– Association (NFPA). 1 Batterymarch regardless of the lower limit. These 846 Method 1312, and the leachate Park, P.O. Box 9101, Quincy, MA limits shall be determined at testing results show that concentrations 02269–9101, (800) 344–3555, atmospheric temperature and pressure. in the leachate do not exceed the www.nfpa.org/. The method of sampling and test National Primary Drinking Water (1) NFPA 30, ‘‘Flammable and procedure shall be the ASTM E 681–85 Standards for lead and cadmium and Combustible Liquids Code,’’ 1977 (incorporated by reference, see § 260.11 the fresh water chronic National Edition, IBR approved for §§ 262.16(b), of this subchapter), or other equivalent Recommended Water Quality Criterion m 264.198(b), 265.198(b), and 267.202(b). methods approved by the Associate for zinc of 120 g/l; or (2) NFPA 30, ‘‘Flammable and Administrator, Pipeline and Hazardous * * * * * Combustible Liquids Code,’’ 1981 Materials Safety Administration, U.S. (d) EPA SW–846 Method 1312, ‘‘Test Edition, IBR approved for §§ 262.16(b), Department of Transportation. Methods for Evaluating Solid Waste, 264.198(b), 265.198(b), and 267.202(b). (B) It is determined to be flammable Physical/Chemical Methods,’’ Third (e) Organization for Economic or extremely flammable using 49 CFR Edition, September 1994, is Cooperation and Development (OECD). 173.115(l). incorporated by reference into this Economic Cooperation and section with the approval of the Director * * * * * of the Federal Register under 5 U.S.C. Development, Environment Directorate, (4) It is an oxidizer. An oxidizer for 552(a) and 1 CFR part 51. It is available 2 rue Andre´ Pascal, F–75775 Paris the purpose of this subchapter is a at www.epa.gov/hw-sw846/. All Cedex 16, France, owww.oecd- substance such as a chlorate, approved material is available for ilibrary.org/. permanganate, inorganic peroxide, or a inspection at the OLEM Docket in the (1) Guidance Manual for the Control nitrate, that yields oxygen readily to of Transboundary Movements of Environmental Protection Agency stimulate the combustion of organic Docket Center (EPA/DC), West William Recoverable Wastes, copyright 2009, matter. Jefferson Clinton Bldg., Rm. 3334, 1301 Annex B: OECD Consolidated List of (i) * * * Constitution Ave. NW, Washington, DC. Wastes Subject to the Green Control (A) The material meets the definition The EPA/DC Public Reading Room Procedure and Annex C: OECD of a Division 1.1, 1.2, or 1.3 explosive, hours of operation are 8:30 a.m. to 4:30 Consolidated List of Wastes Subject to as defined in § 261.23(a)(8), in which p.m., Monday through Friday, excluding the Amber Control Procedure, IBR case it must be classed as an explosive, legal holidays. The telephone number of approved for §§ 262.82(a), 262.83(b), (d), * * * * * the EPA/DC Public Reading room is and (g), and 262.84(b) and (d). (D) According to data on file with the (202) 566–1744, and the telephone (2) [Reserved] Pipeline and Hazardous Materials Safety number for the OLEM Docket is (202) Administration in the U.S. Department 566–0270. It is also available for PART 261—IDENTIFICATION AND of Transportation, it has been LISTING OF HAZARDOUS WASTE inspection at the National Archives and determined that the material does not Records Administration (NARA). For present a hazard in transportation. ■ 5. The authority citation for part 261 information on the availability of this continues to read as follows: * * * * * material at NARA, email fedreg.legal@ Appendic IX to Part 261 [Amended] nara.gov or go to www.archives.gov/ Authority: 42 U.S.C. 6905, 6912(a), 6921, federal-register/cfr/ibr-locations.html. 6922, 6924(y) and 6938. ■ 7. Amend Appendix IX to Part 261 by [FR Doc. 2020–12695 Filed 7–6–20; 8:45 am] ■ 6. Amend § 261.21 by: removing the text ‘‘1010A’’ and adding BILLING CODE 6560–50–P

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DEPARTMENT OF COMMERCE BSAI according to the Fishery requirement to provide prior notice and Management Plan for Groundfish of the opportunity for public comment National Oceanic and Atmospheric Bering Sea and Aleutian Islands pursuant to the authority set forth at 5 Administration Management Area (FMP) prepared by U.S.C. 553(b)(B) as such requirement is the North Pacific Fishery Management impracticable and contrary to the public 50 CFR Part 679 Council under authority of the interest. This requirement is [Docket No. 200227–0066; RTID 0648– Magnuson-Stevens Fishery impracticable and contrary to the public XY096] Conservation and Management Act. interest as it would prevent NMFS from Regulations governing fishing by U.S. responding to the most recent fisheries Fisheries of the Exclusive Economic vessels in accordance with the FMP data in a timely fashion and would Zone Off Alaska; Sablefish in the appear at subpart H of 50 CFR part 600 delay the prohibited retention of non- Bering Sea Subarea of the Bering Sea and 50 CFR part 679. CDQ sablefish by vessels using trawl and Aleutian Islands Management Area The 2020 non-CDQ sablefish trawl gear in the Bering Sea subarea of the ITAC in the Bering Sea subarea of the BSAI. NMFS was unable to publish a AGENCY: National Marine Fisheries BSAI is 791 metric tons (mt) as notice providing time for public Service (NMFS), National Oceanic and established by the final 2020 and 2021 comment because the most recent, Atmospheric Administration (NOAA), harvest specifications for groundfish in relevant data only became available as Commerce. the BSAI (85 FR 13553, March 9, 2020). June 30, 2020. ACTION: Temporary rule; closure. In accordance with § 679.20(d)(2), the The AA also finds good cause to Administrator, Alaska Region, NMFS SUMMARY: NMFS is prohibiting retention waive the 30-day delay in the effective (Regional Administrator), has of non-Community Development Quota date of this action under 5 U.S.C. determined that the 2020 non-CDQ (CDQ) sablefish by vessels using trawl 553(d)(3). This finding is based upon sablefish trawl ITAC in the Bering Sea gear in the Bering Sea subarea of the the reasons provided above for waiver of subarea of the BSAI will soon be Bering Sea and Aleutian Islands prior notice and opportunity for public reached. Therefore, NMFS is requiring management area (BSAI). This action is comment. that non-CDQ sablefish caught with necessary because the 2020 non-CDQ This action is required by §§ 679.20 sablefish initial total allowable catch vessels using trawl gear in the Bering Sea subarea of the BSAI be treated as and 679.21 and is exempt from review (ITAC) in the Bering Sea subarea of the under Executive Order 12866. BSAI will be reached. prohibited species in accordance with 679.21(b). DATES: Effective 1200 hours, Alaska Authority: 16 U.S.C. 1801 et seq. local time (A.l.t.), July 1, 2020, through Classification Dated: July 1, 2020. 2400 hours, A.l.t., December 31, 2020. This action responds to the best He´le`ne M.N. Scalliet, FOR FURTHER INFORMATION CONTACT: available information recently obtained Acting Director, Office of Sustainable Steve Whitney, 907–586–7228. from the fishery. The Assistant Fisheries, National Marine Fisheries Service. SUPPLEMENTARY INFORMATION: NMFS Administrator for Fisheries, NOAA [FR Doc. 2020–14591 Filed 7–1–20; 4:15 pm] manages the groundfish fishery in the (AA), finds good cause to waive the BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 85, No. 130

Tuesday, July 7, 2020

This section of the FEDERAL REGISTER comments submitted on paper will be review, on only samples of those units. contains notices to the public of the proposed considered to the extent practicable. See T.D. 8430, 57 FR 40118, 40121 issuance of rules and regulations. The The Department of the Treasury (Sept. 2, 1992).1 For many years, starting purpose of these notices is to give interested (Treasury Department) and the IRS will in 2000, the minimum sample size for persons an opportunity to participate in the publish for public availability any rule making prior to the adoption of the final both file review and on-site inspections rules. comment submitted electronically, and was 20 percent of the low-income units, to the extent practicable on paper, to its regardless of the size of the total public docket. population of low-income units in a DEPARTMENT OF THE TREASURY Send paper submissions to: project. See TD 8859, 65 FR 2323, 2327 CC:PA:LPD:PR (REG–123027–19), Room (Jan. 14, 2000). Internal Revenue Service 5203, Internal Revenue Service, P.O. On February 25, 2016, the Treasury Box 7604, Ben Franklin Station, Department and the IRS published 26 CFR Part 1 Washington, DC 20044. temporary regulations (T.D. 9753) in the FOR FURTHER INFORMATION CONTACT: [REG–123027–19] Federal Register (81 FR 9333), which Concerning the proposed regulations, RIN 1545–BP59 amended § 1.42–5 of the Income Tax Dillon Taylor or Michael J. Torruella Regulations and permitted the IRS to Costa at (202) 317–4137; concerning Section 42, Low-Income Housing establish sample-size criteria in submissions of comments and/or Credit Compliance-Monitoring guidance published in the Internal requests for a public hearing, Regina Regulations Revenue Bulletin. See Johnson, (202) 317–5177 (not toll-free § 601.601(d)(2)(ii)(b) of 26 CFR Chapter AGENCY: numbers). Internal Revenue Service (IRS), 1.2 Concurrently with the issuance of Treasury. SUPPLEMENTARY INFORMATION: the temporary regulations, Revenue ACTION: Notice of proposed rulemaking. Background Procedure 2016–15, 2016–11 I.R.B. 435, was published in the Internal Revenue SUMMARY: This document contains This document contains proposed proposed regulations relating to the Bulletin. This revenue procedure amendments to the Income Tax permitted an Agency to elect to use compliance-monitoring duties of State Regulations (26 CFR part 1) under or local housing credit agencies sample sizes of either a minimum of 20 section 42 of the Code. percent of the low-income units in a (Agencies) for purposes of the low- Section 42(m)(1) requires an Agency project (rounded up to the nearest income housing credit under section 42 to allocate housing credit dollar whole number) or the number in a chart of the Internal Revenue Code (Code). amounts (the potential to earn low- identifying minimum sample sizes These proposed regulations would relax income housing credits) among depending on the number of low- the minimum compliance-monitoring candidate proposed buildings/projects. income units in a project (the Low- sampling requirement for purposes of The allocation must be pursuant to a Income Housing Credit Minimum Unit physical inspections and low-income qualified allocation plan (QAP) that has Sample Size Reference Chart). The certification review provided in the been approved by the governmental unit minimum sample sizes in the chart Amendments to the Low-Income of which the Agency is a part. A QAP Housing Credit Compliance-Monitoring not only sets forth selection criteria by correspond to the minimum sample Regulations (T.D. 9848) published in the which an Agency makes these sizes required by the Department of Federal Register (84 FR 6076). The allocations but also provides a Housing and Urban Development’s proposed regulations will affect owners procedure that the Agency must follow (HUD’s) Real Estate Assessment Center of low-income housing projects, tenants in monitoring for noncompliance with for inspections under HUD programs in those low-income housing projects, the provisions of section 42, including (the REAC numbers). HUD designed this and Agencies that administer the credit. monitoring for noncompliance with table of sample sizes to produce a DATES: Written or electronic comments habitability standards through regular statistically consistent level of and requests for a public hearing must site visits. confidence in the results of physical be received by September 8, 2020. Section 1.42–5 of the Income Tax inspections across a broad range of ADDRESSES: Commenters are strongly Regulations (the compliance-monitoring project sizes. encouraged to submit public comments regulations) provides the requirements electronically. Submit electronic of a monitoring procedure that must be 1 Initially, the requirements were that the Agency submissions via the Federal part of any QAP. Among the choose which units receive low-income certification review, that the owner receive no more eRulemaking Portal at requirements, an Agency must perform than reasonable notice of the review, and that the www.regulations.gov (indicate IRS and physical inspections and low-income Agency have the right to perform on-site inspection. REG–123027–19) by following the certification review. See TD 8430 at 40122–23. Subsequently, some on- online instructions for submitting The compliance-monitoring site inspections were required, and samples for both review and inspection were required to be chosen comments. Once submitted to the regulations, however, do not require randomly. See TD 8859, 65 FR 2323, 2327 (Jan. 14, Federal eRulemaking Portal, comments that every low-income unit in a project 2000). cannot be edited or withdrawn. The IRS be monitored for non-compliance. 2 Also in the same issue of the Federal Register, expects to have limited personnel Instead, Agencies are permitted to the Treasury Department and the IRS published a notice of proposed rulemaking (REG–150349–12, 81 available to process public comments satisfy their compliance-monitoring FR 9379) (proposed regulations). The text of the that are submitted on paper through duties by physically inspecting, and proposed regulations incorporated by cross- mail. Until further notice, any performing low-income certification reference the text of the temporary regulations.

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The revenue procedure had the effect addressed in Revenue Procedure 2016– Explanation of Provisions of reducing the minimum sample sizes 15, the preamble of the final regulations The final regulations reflected the for large low-income housing projects declares that revenue procedure belief of the Treasury Department and (those with more than 110 low-income obsolete with respect to an Agency as of the IRS that a higher compliance- units). Because of the choice between the date on which the Agency’s QAP is monitoring burden on Agencies was using the REAC number and 20 percent amended to reflect the final regulations justified by the increased statistical of the low-income units, the revenue and, in all cases, after December 31, confidence that results from the use of procedure did not impact projects with 2020. See 84 FR at 6078. Among other the REAC numbers to determine sample fewer than 111 low-income units. provisions, the final regulations require sizes for smaller projects. The comments The same sample-size provisions Agencies to inspect no fewer units than on the final regulations, however, have applied to independently selected the number specified for projects of the demonstrated the magnitude of the samples on which the Agency must relevant size in the REAC numbers. This increased costs and burdens that this perform low-income certification requirement has the effect of increasing requirement imposes on Agencies. As a review. The revenue procedure the sample sizes for smaller projects. result of these comments, the Treasury provided only minimum sample sizes, The Treasury Department and the IRS Department and the IRS have greater permitting Agencies to monitor determined that the REAC numbers awareness of the many practical compliance in more units, if desired. produce a statistically valid sampling of challenges Agencies experience in using In the preamble to the temporary units and that using them yielded a samples greater than 20 percent while regulations, the Treasury Department consistent level of confidence in the carrying out their compliance- and the IRS expressed concern that, in compliance-monitoring results for monitoring responsibilities. smaller projects, physical inspection or projects of various sizes. The final Furthermore, the comments noted that low-income certification review of only regulations allow Agencies a reasonable many Agencies typically evaluate each 20 percent of the units might fail to period of time to amend their QAPs for project to determine if circumstances produce sufficiently accurate estimates this purpose, but require QAPs to be warrant the inspection and review of of the remaining units’ overall amended no later than December 31, more units than the required minimum. compliance with habitability and low- 2020. Complying with the REAC numbers income certification. To address this when an Agency believes that smaller Since the publication of the final concern, the preamble added that ‘‘the samples would be sufficient may have regulations, the Treasury Department Treasury Department and the IRS intend the effect of depriving the Agency of the and the IRS have received numerous to consider whether Rev. Proc. 2016–15 resources that it requires to engage in oral and written comments from should be replaced with a revenue additional compliance-monitoring Agencies, stakeholders, and trade procedure that does not permit use of activities on projects that manifest the groups representing Agencies. In the 20 percent rule in those need for inspection and review of more particular, these comments expressed circumstances.’’ 81 FR at 9334. The than the minimum sample of units. removal of the 20 percent option would concern that the final regulations ended Although there is value in providing generally increase the number of units Agencies’ ability to use samples of 20 a level of confidence that is more that needed to be inspected in smaller percent of the low-income units in a consistent over a broad range of project projects. The public comments on the project when the applicable REAC sizes, that increased consistency is temporary regulations directed very number is larger. Consistent with the outweighed in this context by concerns little attention to this potential increase. comments and letters, the trade groups’ over Agencies’ compliance-monitoring In addition, the preamble invited comment letters expressed concern burdens. One goal of the compliance- fundamental suggestions to make about the situations in which the REAC monitoring regulations is to increase inspections less burdensome: numbers would increase the number of flexibility and reduce burden, so that The Treasury Department and the IRS units that Agencies must examine, Agencies may fulfill their compliance- believe the methods in Rev. Proc. 2016–15 thereby increasing Agencies’ costs for monitoring responsibilities in an reasonably balance the burden on Agencies, additional staff and other related efficient and cost-effective manner. tenants, and building owners while expenditures and burdens. One trade Accordingly, the Treasury Department adequately monitoring compliance. However, group further explained that many and the IRS propose returning to the additional comments may be submitted on Agencies would encounter difficulty in other possible methods, including stratified sample-size requirements that applied addressing increased staffing needs and under the temporary regulations. Thus, sampling procedures and estimation other new costs due to overall State methodologies. To be useful, any such under these proposed regulations, the comments should include substantial detail budget constraints. The trade group minimum number of low-income units regarding the procedures to be adopted and observed that cost increases are also that must be included in the random should provide thorough justification as to likely to cause Agencies to increase the samples on which an Agency conducts whether the suggested methods effectively compliance-monitoring fees that they physical inspections or low-income reduce burden without negatively impacting charge to building owners. If fees are not certification review is the lesser of the the confidence that can be placed in the increased enough to cover the increased applicable REAC number or 20 percent results obtained from the resulting samples. costs, Agencies will have to divert of the low-income units in the project, Id. at 9336. The public submitted no resources from other affordable housing rounded up to the next whole number. comment letters specifically responsive priorities to fund their compliance- to this request. monitoring activities. The trade group Proposed Applicability Date On February 26, 2019, the Treasury noted that terminating the ability to use These regulations are proposed to Department and IRS published the 20 percent samples will have its apply beginning after the date these regulations (T.D. 9848) in the Federal most significant impact on States with regulations are published as final Register (84 FR 6076), finalizing the numerous small projects, predominantly regulations in the Federal Register. temporary regulations. Because these in rural areas, and that some States with However, an Agency may rely on these final regulations contain provisions only small projects may even experience proposed regulations beginning on directly addressing all issues previously a 100 percent increase in burden. February 26, 2019, until December 31 of

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the calendar year following the year that Drafting Information TABLE 1 TO PARAGRAPH (c)(2)(iii)— contains the date these regulations are The principal authors of these Continued published as final regulations in the regulations are Dillon Taylor and Federal Register. Michael J. Torruella Costa, Office of the Number of low- income units Special Analyses Associate Chief Counsel (Passthroughs selected for and Special Industries). However, other Number of low-income inspection or for This regulation is not subject to personnel from the Treasury units in the low-income low-income review under section 6(b) of Executive Department and the IRS participated in housing project certification Order 12866 pursuant to the review their development. (minimum unit Memorandum of Agreement (April 11, sample size) 2018) between the Treasury Department List of Subjects in 26 CFR Part 1 and the Office of Management and Income taxes, Reporting and 17–18 ...... 11 Budget regarding review of tax recordkeeping requirements. 19–21 ...... 12 regulations. 22–25 ...... 13 Proposed Amendments to the 26–29 ...... 14 In accordance with the Regulatory Regulations 30–34 ...... 15 Flexibility Act (5 U.S.C. chapter 6) it is Accordingly, 26 CFR part 1 is 35–40 ...... 16 hereby certified that these regulations 41–47 ...... 17 will not impose a significant economic proposed to be amended as follows: 48–56 ...... 18 57–67 ...... 19 impact on a substantial number of small PART 1—INCOME TAXES entities. These regulations reinstate the 68–81 ...... 20 minimum compliance-monitoring ■ 82–101 ...... 21 Paragraph 1. The authority citation 102–130 ...... 22 sampling requirement for purposes of for part 1 continues to read in part as physical inspections and low-income 131–175 ...... 23 follows: 176–257 ...... 24 certification review previously provided Authority: 26 U.S.C. 7805 * * * 258–449 ...... 25 under the temporary regulations (T.D. 450–1,461 ...... 26 9753) published in the Federal Register ■ Par. 2. Amend § 1.42–5 by revising 1,462–9,999 ...... 27 (81 FR 9333) on February 25, 2016. paragraphs (c)(2)(iii)(B) and (h) to read These previously provided requirements as follows: * * * * * had been and continue to be relied upon (h) Applicability dates. The § 1.42–5 Monitoring compliance with low- by Agencies since 2016. income housing credit requirements. requirements in paragraph (c)(2)(iii)(B) of this section apply beginning after the Pursuant to section 7805(f) of the * * * * * Internal Revenue Code, these date final regulations are published in (c) * * * the Federal Register. regulations will be submitted to the (2) * * * Chief Counsel for Advocacy of the Small (iii) * * * Douglas W. O’Donnell, Business Administration for comment (B) Number of low-income units. The Acting Deputy Commissioner for Services and on their impact on small business. minimum number of low-income units Enforcement. Comments and Requests for a Public for which the Agency must conduct on- [FR Doc. 2020–14555 Filed 7–2–20; 4:15 pm] Hearing site inspections and low-income BILLING CODE 4830–01–P certification review is the lesser of— Before these proposed amendments to (1) 20 percent of the low-income units the regulations are adopted as final in the low-income housing project, DEPARTMENT OF HOMELAND regulations, consideration will be given rounded up to the nearest whole SECURITY to comments that are submitted timely number of units; or to the IRS as prescribed in the preamble (2) the Minimum Unit Sample Size set Coast Guard under the ADDRESSES section. The forth in the following Low-Income Treasury Department and the IRS Housing Credit Minimum Unit Sample 33 CFR Part 100 request comments on all aspects of the Size Reference Chart: proposed regulations. Any electronic [Docket Number USCG–2020–0348] comments submitted, and to the extent TABLE 1 TO PARAGRAPH (c)(2)(iii) RIN 1625–AA08 practicable any paper comments submitted, will be made available at Number of low- Special Local Regulation; Ohio River, www.regulations.gov or upon request. income units Owensboro, KY selected for A public hearing will be scheduled if Number of low-income inspection or for AGENCY: Coast Guard, DHS. units in the low-income low-income requested in writing by any person who ACTION: Notice of proposed rulemaking. timely submits electronic or written housing project certification review comments. Requests for a public hearing (minimum unit SUMMARY: The Coast Guard is proposing are also encouraged to be made sample size) to establish a temporary special local electronically. If a public hearing is regulation for all navigable waters of the scheduled, notice of the date and time 1 ...... 1 Ohio River from mile marker (MM) 754 for the public hearing will be published 2 ...... 2 .0 to MM 759.0. This action is necessary in the Federal Register. Announcement 3 ...... 3 to provide for the safety of life on these 2020–4, 2020–17 IRB 1, provides that 4 ...... 4 navigable waters near Owensboro, KY, 5–6 ...... 5 until further notice, public hearings 7 ...... 6 during a high speed boat race on August conducted by the IRS will be held 8–9 ...... 7 14, 2020 through August 16, 2020. This telephonically. Any telephonic hearing 10–11 ...... 8 proposed rulemaking would prohibit will be made accessible to people with 12–13 ...... 9 persons and vessels from being in the disabilities. 14–16 ...... 10 regulated area unless authorized by the

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Captain of the Port Sector Ohio Valley a.m. to 6 p.m. on August 16, 2020. The fields, and governmental jurisdictions or a designated representative. We special local regulation would cover all with populations of less than 50,000. invite your comments on this proposed navigable waters from MM 754 to MM The Coast Guard certifies under 5 U.S.C. rulemaking. 759 on the Ohio River. The duration of 605(b) that this proposed rule would not DATES: Comments and related material the zone is intended to ensure the safety have a significant economic impact on must be received by the Coast Guard on of vessels and these navigable waters a substantial number of small entities. or before July 22, 2020. before, during, and after the scheduled While some owners or operators of event. No vessel or person would be vessels intending to transit the regulated ADDRESSES: You may submit comments permitted to enter the regulated area area may be small entities, for the identified by docket number USCG– without obtaining permission from the reasons stated in section IV.A above, 2020–0348 using the Federal COTP or a designated representative. this proposed rule would not have a eRulemaking Portal at https:// The regulatory text we are proposing significant economic impact on any www.regulations.gov. See the ‘‘Public appears at the end of this document. vessel owner or operator. Participation and Request for If you think that your business, Comments’’ portion of the IV. Regulatory Analyses organization, or governmental SUPPLEMENTARY INFORMATION section for We developed this proposed rule after jurisdiction qualifies as a small entity further instructions on submitting considering numerous statutes and and that this rule would have a comments. Executive orders related to rulemaking. significant economic impact on it, FOR FURTHER INFORMATION CONTACT: If Below we summarize our analyses please submit a comment (see you have questions about this proposed based on a number of these statutes and ADDRESSES) explaining why you think it rulemaking, call or email MST2 Craig Executive orders, and we discuss First qualifies and how and to what degree Colton, Waterways Department Sector Amendment rights of protestors. this rule would economically affect it. Under section 213(a) of the Small Ohio Valley, U.S. Coast Guard; A. Regulatory Planning and Review telephone 502–779–5335, email Business Regulatory Enforcement [email protected]. Executive Orders 12866 and 13563 Fairness Act of 1996 (Pub. L. 104–121), direct agencies to assess the costs and SUPPLEMENTARY INFORMATION: we want to assist small entities in benefits of available regulatory understanding this proposed rule. If the I. Table of Abbreviations alternatives and, if regulation is rule would affect your small business, CFR Code of Federal Regulations necessary, to select regulatory organization, or governmental DHS Department of Homeland Security approaches that maximize net benefits. jurisdiction and you have questions FR Federal Register Executive Order 13771 directs agencies concerning its provisions or options for NPRM Notice of proposed rulemaking to control regulatory costs through a compliance, please call or email the § Section budgeting process. This NPRM has not person listed in the FOR FURTHER U.S.C. United States Code been designated a ‘‘significant INFORMATION CONTACT section. The Coast II. Background, Purpose, and Legal regulatory action,’’ under Executive Guard will not retaliate against small Basis Order 12866. Accordingly, the NPRM entities that question or complain about has not been reviewed by the Office of this proposed rule or any policy or On January 13, 2020, the City of Management and Budget (OMB), and action of the Coast Guard. Owensboro notified the Coast Guard pursuant to OMB guidance it is exempt that it will be hosting a high speed boat from the requirements of Executive C. Collection of Information race called Owensboro HydroFair from Order 13771. This proposed rule would not call for August 14, 2020, through August 16, This regulatory action determination a new collection of information under 2020. The race will be located on the is based on the size, location, duration, the Paperwork Reduction Act of 1995 Ohio River in front of the Owensboro and time-of-day of the special local (44 U.S.C. 3501–3520). Convention Center between Mile Marker regulation. Entry into the regulated area (MM) 754 to MM 759. Hazards from will be prohibited from noon to 6 p.m. D. Federalism and Indian Tribal high speed boat races include collision, on August 14, 2020, from 8 a.m. to 6 Governments mechanical breakdowns, disabled p.m. on August 15, 2020, and from 8 A rule has implications for federalism vessels, capsized vessels, and persons in a.m. to 6 p.m. on August 16, 2020, from under Executive Order 13132 the water. The Captain of the Port Sector Ohio River MM 754.0 to MM 759.0, (Federalism), if it has a substantial Ohio Valley (COTP) has determined that unless authorized by the Captain of the direct effect on the States, on the potential hazards associated with the Port Sector Ohio Valley (COTP) or a relationship between the National high speed boat race would be a safety designated representative. Moreover, the Government and the States, or on the concern for anyone on a 5 mile stretch Coast Guard will issue written Local distribution of power and of the Ohio River. Notice to Mariners and Broadcast Notice responsibilities among the various The purpose of this rulemaking is to to Mariners via VHF–FM marine levels of government. We have analyzed ensure the safety of vessels and the channel 16 about the temporary special this proposed rule under that Order and navigable waters from MM 754 to MM local regulation that is in place. have determined that it is consistent 759 before, during, and after the with the fundamental federalism scheduled event. The Coast Guard is B. Impact on Small Entities principles and preemption requirements proposing this rulemaking under The Regulatory Flexibility Act of described in Executive Order 13132. authority in 46 U.S.C. 70034 (previously 1980, 5 U.S.C. 601–612, as amended, Also, this proposed rule does not have 33 U.S.C. 1231). requires Federal agencies to consider tribal implications under Executive the potential impact of regulations on Order 13175 (Consultation and III. Discussion of Proposed Rule small entities during rulemaking. The Coordination with Indian Tribal The COTP is proposing to establish a term ‘‘small entities’’ comprises small Governments) because it would not special local regulation from noon to 6 businesses, not-for-profit organizations have a substantial direct effect on one or p.m. on August 14, 2020, from 8 a.m. to that are independently owned and more Indian tribes, on the relationship 6 p.m. on August 15, 2020, and from 8 operated and are not dominant in their between the Federal Government and

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Indian tribes, or on the distribution of V. Public Participation and Request for (b) Regulations. (1) All non- power and responsibilities between the Comments participants are prohibited from Federal Government and Indian tribes. We view public participation as entering, transiting through, anchoring If you believe this proposed rule has essential to effective rulemaking, and in, or remaining within the regulated implications for federalism or Indian will consider all comments and material area described in paragraph (a) of this tribes, please call or email the person received during the comment period. section unless authorized by the Captain listed in the FOR FURTHER INFORMATION Your comment can help shape the of the Port Sector Ohio Valley or their CONTACT section. outcome of this rulemaking. If you designated representative. submit a comment, please include the (2) To seek permission to enter, E. Unfunded Mandates Reform Act docket number for this rulemaking, contact the COTP or the COTP’s representative by VHF Channel 13 or 16, The Unfunded Mandates Reform Act indicate the specific section of this document to which each comment or at 1–800–253–7465. Those in the of 1995 (2 U.S.C. 1531–1538) requires regulated area must comply with all Federal agencies to assess the effects of applies, and provide a reason for each suggestion or recommendation. lawful orders or directions given to their discretionary regulatory actions. In We encourage you to submit them by the COTP or the designated particular, the Act addresses actions comments through the Federal representative. that may result in the expenditure by a eRulemaking Portal at https:// (3) The COTP will provide notice of State, local, or tribal government, in the www.regulations.gov. If your material the regulated area through advanced aggregate, or by the private sector of cannot be submitted using https:// notice via broadcast notice to mariners $100,000,000 (adjusted for inflation) or www.regulations.gov, call or email the and by on-scene designated more in any one year. Though this person in the FOR FURTHER INFORMATION representatives. proposed rule would not result in such CONTACT section of this document for (c) Enforcement periods. This section an expenditure, we do discuss the alternate instructions. will be enforced from noon to 6 p.m. on effects of this rule elsewhere in this We accept anonymous comments. All August 14, 2020, from 8 a.m. to 6 p.m. preamble. comments received will be posted on August 15, 2020, and from 8 a.m. to without change to https:// 6 p.m. on August 16, 2020. F. Environment www.regulations.gov and will include Dated: June 24, 2020. any personal information you have We have analyzed this proposed rule A.M. Beach, provided. For more about privacy and under Department of Homeland Captain, U.S. Coast Guard, Captain of the submissions in response to this Port Sector Ohio Valley. Security Directive 023–01, Rev. 1, document, see DHS’s eRulemaking [FR Doc. 2020–14407 Filed 7–6–20; 8:45 am] associated implementing instructions, System of Records notice (85 FR 14226, and Environmental Planning March 11, 2020). BILLING CODE 9110–04–P COMDTINST 5090.1 (series), which Documents mentioned in this NPRM guide the Coast Guard in complying as being available in the docket, and all DEPARTMENT OF HOMELAND with the National Environmental Policy public comments, will be in our online SECURITY Act of 1969 (42 U.S.C. 4321–4370f), and docket at https://www.regulations.gov have made a preliminary determination and can be viewed by following that Coast Guard that this action is one of a category of website’s instructions. Additionally, if actions that do not individually or you go to the online docket and sign up 33 CFR Part 100 cumulatively have a significant effect on for email alerts, you will be notified [Docket Number USCG–2020–0343] the human environment. This proposed when comments are posted or a final rule involves a special local regulation rule is published. RIN 1625–AA08 lasting 26 hours over a 3 day period that List of Subjects in 33 CFR Part 100 would prohibit entry within a 5 mile Special Local Regulation; Breton Bay, Marine safety, Navigation (water), McIntosh Run, Leonardtown, MD stretch of the Ohio River. Normally such Reporting and recordkeeping actions are categorically excluded from requirements, Waterways. AGENCY: Coast Guard, DHS. further review under paragraph L61 of For the reasons discussed in the ACTION: Notice of proposed rulemaking. Appendix A, Table 1 of DHS Instruction preamble, the Coast Guard is proposing SUMMARY: The Coast Guard is proposing Manual 023–01–001–01, Rev. 1. For to amend 33 CFR part 100 as follows: instructions on locating the docket, see to establish special local regulations for the ADDRESSES section of this preamble. PART 100—SAFETY OF LIFE ON certain waters of Breton Bay and We seek any comments or information NAVIGABLE WATERS McIntosh Run. This action is necessary that may lead to the discovery of a to provide for the safety of life on these significant environmental impact from ■ 1. The authority citation for part 100 navigable waters located at this proposed rule. continues to read as follows: Leonardtown, MD, during a high-speed Authority: 46 U.S.C. 70041; 33 CFR 1.05– power boat demonstration event on G. Protest Activities 1. August 1, 2020, and August 2, 2020. This proposed rulemaking would ■ 2. Add § 100.35T08–0348 to read as The Coast Guard respects the First prohibit persons and vessels from being follows: Amendment rights of protesters. in the regulated area unless authorized Protesters are asked to call or email the § 100.35T08–0192 Special Local by the Captain of the Port Maryland- person listed in the FOR FURTHER Regulation; Ohio River, Owensboro, KY. National Capital Region or Coast Guard INFORMATION CONTACT section to (a) Regulated area. The regulations in Patrol Commander. We invite your coordinate protest activities so that your this area apply to the following area: All comments on this proposed rulemaking. message can be received without navigable waters of the Ohio River from DATES: Comments and related material jeopardizing the safety or security of mile marker (MM) 754.0 to MM 759.0 in must be received by the Coast Guard on people, places, or vessels. Owensboro, KY. or before July 22, 2020.

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ADDRESSES: You may submit comments The Coast Guard is requesting that entering the regulated area while the identified by docket number USCG– interested parties provide comments rule is being enforced. Vessel operators 2020–0343 using the Federal within a shortened comment period of could request permission to enter and eRulemaking Portal at https:// 15 days instead of the more typical 30 transit through the regulated area by www.regulations.gov. See the ‘‘Public days for this notice of proposed contacting the PATCOM on VHF–FM Participation and Request for rulemaking. The Coast Guard believes a channel 16. Official Patrols are any Comments’’ portion of the shortened comment period is necessary vessel assigned or approved by the SUPPLEMENTARY INFORMATION section for and reasonable to ensure the Coast Commander, Coast Guard Sector further instructions on submitting Guard has time to review and respond Maryland-National Capital Region with comments. to any significant comments submitted a commissioned, warrant, or petty by the public in response to this NPRM officer on board and displaying a Coast FOR FURTHER INFORMATION CONTACT: If and has a final rule in effect in time for Guard ensign. you have questions about this proposed the scheduled event. If permission is granted by the COTP rulemaking, call or email Mr. Ron The Coast Guard proposes this or PATCOM, a person or vessel would Houck, U.S. Coast Guard Sector rulemaking under authority in 46 U.S.C. be allowed to enter the regulated area or Maryland—National Capital Region; 70041, which authorizes the Coast pass directly through the regulated area telephone 410–576–2674, email Guard to establish and define special as instructed. Vessels would be required [email protected]. local regulations. to operate at a safe speed that minimizes wake while within the regulated area. SUPPLEMENTARY INFORMATION: III. Discussion of Proposed Rule Official patrol vessels would direct I. Table of Abbreviations The COTP Maryland-National Capital everyone other than participants while CFR Code of Federal Regulations Region proposes to establish special within the regulated area. Spectators are COTP Captain of the Port local regulations from 8 a.m. on August only allowed inside the regulated area if DHS Department of Homeland Security 1, 2020, through 6 p.m. on August 2, they remain within a designated FR Federal Register 2020. The special local regulations spectator area. Only participants and NPRM Notice of proposed rulemaking would be enforced from 8 a.m. through official patrols are allowed within the PATCOM Coast Guard Patrol Commander 6 p.m. on August 1st and those same race area and milling area. § Section hours on August 2nd. The regulated The regulatory text we are proposing U.S.C. United States Code area would cover all navigable waters of appears at the end of this document. II. Background, Purpose, and Legal Breton Bay and McIntosh Run, IV. Regulatory Analyses Basis immediately adjacent to Leonardtown, MD, shoreline, from shoreline to We developed this proposed rule after The Southern Maryland Boat Club of shoreline, within an area bounded to the considering numerous statutes and Leonardtown, MD, has notified the east by a line drawn along latitude Executive orders related to rulemaking. Coast Guard that it will be conducting 38°16′43″ N and bounded to the west by Below we summarize our analyses the Southern Maryland Boat Club Bash a line drawn along longitude 076°38′30″ based on a number of these statutes and on the Bay from 9 a.m. to 5 p.m. on W, located at Leonardtown, MD. Executive orders, and we discuss First August 1, 2020, and from 9 a.m. to 5 This proposed rule provides Amendment rights of protestors. p.m. on August 2, 2020. The high-speed additional information about areas power boat event consists of within the regulated area, and the A. Regulatory Planning and Review approximately 50 participating vintage restrictions that would apply to Executive Orders 12866 and 13563 and historic race boats—including mariners. These areas include a ‘‘Race direct agencies to assess the costs and runabouts, v-bottoms, tunnel hulls, and Area’’, ‘‘Buffer Area’’, ‘‘Milling Area’’ benefits of available regulatory hydroplanes—12 to 21 feet in length. and ‘‘Spectator Area’’. They lie within alternatives and, if regulation is The boats will be participating in an an area bounded to the east by a line necessary, to select regulatory exhibition, operating in heats along a drawn along latitude 38°16′43″ N and approaches that maximize net benefits. marked racetrack-type course 1 mile in bounded to the west by a line drawn Executive Order 13771 directs agencies length and 150 feet in width, located in along longitude 076°38′30″ W, located to control regulatory costs through a Breton Bay and McIntosh Run at in Breton Bay and McIntosh Run, at budgeting process. This NPRM has not Leonardtown, MD. The regatta is not a Leonardtown, MD. been designated a ‘‘significant competition, but rather a demonstration The proposed duration of the special regulatory action,’’ under Executive of the vintage race craft. Hazards from local regulations and size of the Order 12866. Accordingly, the NPRM the high-speed power boat regulated area are intended to ensure has not been reviewed by the Office of demonstration event include the safety of life on these navigable Management and Budget (OMB), and participants operating within and waters before, during, and after the pursuant to OMB guidance it is exempt adjacent to designated navigation high-speed power boat event, scheduled from the requirements of Executive channels and interfering with vessels from 9 a.m. until 5 p.m. on August 1, Order 13771. intending to operate within those 2020, and August 2, 2020. The COTP This regulatory action determination channels, as well as operating within and the Coast Guard Patrol Commander is based on size, duration and time of approaches to local public boat (PATCOM) would have authority to year of the regulated area, which would landings. The Captain of the Port forbid and control the movement of all impact a small designated area of Breton (COTP) Maryland—National Capital vessels and persons, including event Bay and McIntosh Run for 20 total Region has determined that potential participants, in the regulated area. enforcement hours. The Coast Guard hazards associated with the high-speed Except for vessels already at berth, would issue a Broadcast Notice to power boat event would be a safety everyone other than Southern Maryland Mariners via VHF–FM marine channel concern for anyone intending to operate Boat Club Leonardtown Regatta 16 about the status of the regulated area. within certain waters of Breton Bay and participants, including spectators, Moreover, the rule would allow vessels McIntosh Run at Leonardtown, MD, would be required to get permission to seek permission to enter the regulated operating in or near the event area. from the COTP or PATCOM before area.

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B. Impact on Small Entities with the fundamental federalism G. Protest Activities The Regulatory Flexibility Act of principles and preemption requirements The Coast Guard respects the First 1980, 5 U.S.C. 601–612, as amended, described in Executive Order 13132. Amendment rights of protesters. requires Federal agencies to consider Also, this proposed rule does not have Protesters are asked to call or email the the potential impact of regulations on tribal implications under Executive person listed in the FOR FURTHER small entities during rulemaking. The Order 13175 (Consultation and INFORMATION CONTACT section to term ‘‘small entities’’ comprises small Coordination with Indian Tribal coordinate protest activities so that your businesses, not-for-profit organizations Governments) because it would not message can be received without that are independently owned and have a substantial direct effect on one or jeopardizing the safety or security of operated and are not dominant in their more Indian tribes, on the relationship people, places, or vessels. fields, and governmental jurisdictions between the Federal Government and V. Public Participation and Request for with populations of less than 50,000. Indian tribes, or on the distribution of Comments The Coast Guard certifies under 5 U.S.C. power and responsibilities between the 605(b) that this proposed rule would not Federal Government and Indian tribes. We view public participation as have a significant economic impact on If you believe this proposed rule has essential to effective rulemaking, and a substantial number of small entities. implications for federalism or Indian will consider all comments and material While some owners or operators of tribes, please call or email the person received during the comment period. vessels intending to transit the regulated listed in the FOR FURTHER INFORMATION Your comment can help shape the area may be small entities, for the CONTACT section. outcome of this rulemaking. If you reasons stated in section IV.A above, submit a comment, please include the this proposed rule would not have a E. Unfunded Mandates Reform Act docket number for this rulemaking, significant economic impact on any The Unfunded Mandates Reform Act indicate the specific section of this vessel owner or operator. of 1995 (2 U.S.C. 1531–1538) requires document to which each comment applies, and provide a reason for each If you think that your business, Federal agencies to assess the effects of suggestion or recommendation. organization, or governmental their discretionary regulatory actions. In jurisdiction qualifies as a small entity particular, the Act addresses actions We encourage you to submit comments through the Federal and that this rule would have a that may result in the expenditure by a significant economic impact on it, eRulemaking Portal at https:// State, local, or tribal government, in the please submit a comment (see www.regulations.gov. If your material aggregate, or by the private sector of ADDRESSES) explaining why you think it cannot be submitted using https:// $100,000,000 (adjusted for inflation) or qualifies and how and to what degree www.regulations.gov, call or email the more in any one year. Though this this rule would economically affect it. person in the FOR FURTHER INFORMATION proposed rule would not result in such Under section 213(a) of the Small CONTACT section of this document for an expenditure, we do discuss the Business Regulatory Enforcement alternate instructions. effects of this rule elsewhere in this Fairness Act of 1996 (Pub. L. 104–121), We accept anonymous comments. All preamble. we want to assist small entities in comments received will be posted understanding this proposed rule. If the F. Environment without change to https:// rule would affect your small business, www.regulations.gov and will include organization, or governmental We have analyzed this proposed rule any personal information you have jurisdiction and you have questions under Department of Homeland provided. For more about privacy and concerning its provisions or options for Security Directive 023–01, Rev. 1, submissions in response to this compliance, please call or email the associated implementing instructions, document, see DHS’s eRulemaking person listed in the FOR FURTHER and Environmental Planning System of Records notice (85 FR 14226, INFORMATION CONTACT section. The Coast COMDTINST 5090.1 (series), which March 11, 2020). Guard will not retaliate against small guide the Coast Guard in complying Documents mentioned in this NPRM entities that question or complain about with the National Environmental Policy as being available in the docket, and all this proposed rule or any policy or Act of 1969 (42 U.S.C. 4321–4370f), and public comments, will be in our online action of the Coast Guard. have made a preliminary determination docket at https://www.regulations.gov that this action is one of a category of and can be viewed by following that C. Collection of Information actions that do not individually or website’s instructions. Additionally, if This proposed rule would not call for cumulatively have a significant effect on you go to the online docket and sign up a new collection of information under the human environment. This proposed for email alerts, you will be notified the Paperwork Reduction Act of 1995 rule involves implementation of when comments are posted or a final (44 U.S.C. 3501–3520). regulations within 33 CFR part 100 rule is published. applicable to organized marine events D. Federalism and Indian Tribal on the navigable waters of the United List of Subjects in 33 CFR Part 100 Governments States that could negatively impact the Marine safety, Navigation (water), A rule has implications for federalism safety of waterway users and shore side Reporting and recordkeeping under Executive Order 13132 activities in the event area lasting for 20 requirements, Waterways. (Federalism), if it has a substantial hours. Normally such actions are For the reasons discussed in the direct effect on the States, on the categorically excluded from further preamble, the Coast Guard is proposing relationship between the National review under paragraph L61 of to amend 33 CFR part 100 as follows: Government and the States, or on the Appendix A, Table 1 of DHS Instruction distribution of power and Manual 023–01–001–01, Rev. 01. We PART 100—SAFETY OF LIFE ON responsibilities among the various seek any comments or information that NAVIGABLE WATERS levels of government. We have analyzed may lead to the discovery of a this proposed rule under that Order and significant environmental impact from ■ 1. The authority citation for part 100 have determined that it is consistent this proposed rule. continues to read as follows:

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Authority: 46 U.S.C. 70041; 33 CFR 1.05– N, longitude 076°37′40.85″ W, thence Capital Region with a commissioned, 1. northwesterly to latitude 38°16′55.48″ warrant, or petty officer on board and ■ 2. Add § 100.T05–0343 to read as N, longitude 076°37′46.39″ W, thence displaying a Coast Guard ensign. follows: northeasterly to latitude 38°16′58.61″ N, Participant means a person or vessel longitude 076°37′44.29″ W, thence registered with the event sponsor as § 100.T05–0343 Southern Maryland Boat northwesterly to point of origin. participating in the Southern Maryland Club Leonardtown Regatta, Breton Bay, (v) Southeast Spectator Fleet Area. Boat Club Leonardtown Regatta or McIntosh Run, Leonardtown, MD. The area is bounded by a line otherwise designated by the event (a) Regulated areas. The regulations commencing at position latitude sponsor as having a function tied to the in this section apply to the following 38°16′47.20″ N, longitude 076°37′54.80″ event. areas: W, thence southerly to latitude Race Area is an area described by a (1) Regulated area. All navigable 38°16′43.30″ N, longitude 076°37′55.20″ line bound by coordinates provided in waters of Breton Bay and McIntosh Run, W, thence easterly to latitude latitude and longitude that outlines the immediately adjacent to Leonardtown, 38°16′43.20″ N, longitude 076°37′47.80″ boundary of a high-speed power boat MD shoreline, from shoreline to W, thence northerly to latitude demonstration area within the regulated shoreline, within an area bounded to the 38°16′44.80″ N, longitude 076°37′48.20″ area defined by this section. east by a line drawn along latitude W, thence northwesterly to point of Spectator means a person or vessel ° ′ ″ 38 16 43 N and bounded to the west by origin. not registered with the event sponsor as ° ′ ″ a line drawn along longitude 076 38 30 (vi) South Spectator Fleet Area. The participants or assigned as official W, located at Leonardtown, MD. The area is bounded by a line commencing patrols and is present with the purpose following locations are within the at position latitude 38°16′55.36″ N, of observing the event. regulated area: longitude 076°38′17.26″ W, thence Spectator Area is an area described by (i) Race Area. The area is bounded by southeasterly to latitude 38°16′50.39″ N, a line bound by coordinates provided in a line commencing at position latitude longitude 076°38′03.69″ W, thence latitude and longitude that outlines the ° ′ ″ ° ′ ″ 38 17 09.78 N, longitude 076 38 22.71 southerly to latitude 38°16′48.87″ N, boundary of a spectator area within the W; thence southeasterly to latitude longitude 076°38′03.68″ W, thence regulated area defined by this part. ° ′ ″ ° ′ ″ 38 16 58.62 N, longitude 076 37 50.91 northwesterly to latitude 38°16′53.82″ (c) Regulations. (1) Except for vessels W; thence southwesterly to latitude N, longitude 076°38′17.28″ W, thence already at berth, everyone other than ° ′ ″ ° ′ ″ 38 16 51.89 N, longitude 076 37 55.82 northerly to point of origin. participants are prohibited from W; thence northwesterly to latitude (2) Coordinates. These coordinates are entering, transiting through, anchoring ° ′ ″ ° ′ ″ 38 17 05.44 N, longitude 076 38 27.20 based on datum NAD 1983. in, or remaining within the regulated W; thence northeasterly terminating at (b) Definitions. As used in this area described in paragraph (a) of this point of origin. section— section unless authorized by the COTP (ii) Buffer Area. The area surrounds Buffer Area is a neutral area that Maryland-National Capital Region or the entire Race Area described in the surrounds the perimeter of the Race PATCOM. preceding paragraph of this section. The Area within the regulated area described (2) To seek permission to enter, area is bounded by a line commencing by this section. The purpose of a buffer contact the COTP Maryland-National at the shoreline west of Leonardtown area is to minimize potential collision Capital Region at telephone number Wharf Park at position latitude conflicts with marine event participants 410–576–2693 or on Marine Band 38°17′13.80″ N, longitude 076°38′24.72″ and spectator vessels or nearby Radio, VHF–FM channel 16 (156.8 W; thence easterly to latitude transiting vessels. This area provides MHz) or the PATCOM on Marine Band 38°16′58.61″ N, longitude 076°37′44.29″ separation between a Race Area and a Radio, VHF–FM channel 16 (156.8 W; thence southerly to latitude specified Spectator Area or other vessels MHz). Those in the regulated area must 38°16′46.35″ N, longitude 076°37′52.54″ that are operating in the vicinity of the comply with all lawful orders or W; thence westerly to latitude regulated area established by the special directions given to them by the COTP 38°16′58.78″ N, longitude 076°38′26.63″ local regulations. Maryland-National Capital Region or W; thence northerly to latitude Captain of the Port (COTP) Maryland- PATCOM. 38°17′07.50″ N, longitude 076°38′30.00″ National Capital Region means the (3) Vessels are required to operate at W; thence northeasterly terminating at Commander, U.S. Coast Guard Sector a safe speed that minimizes wake while point of origin. Maryland-National Capital Region or within the regulated area in a manner (iii) Milling Area. The area is bounded any Coast Guard commissioned, warrant that would not endanger participants or by a line commencing at the shoreline or petty officer who has been authorized any other craft. The COTP Maryland- east of Leonardtown Wharf Park at by the COTP to act on his behalf. National Capital Region or PATCOM position latitude 38°17′10.07″ N, Coast Guard Patrol Commander may terminate the event, or the longitude 076°38′14.87″ W; thence (PATCOM) means a commissioned, operation of any vessel participating in easterly and southerly along the warrant, or petty officer of the U.S. the marine event, at any time if deemed shoreline to latitude 38°17′01.54″ N, Coast Guard who has been designated necessary for the protection of life or longitude 076°37′52.24″ W; thence by the Commander, Coast Guard Sector property. westerly terminating at point of origin. Maryland-National Capital Region. (4) The race area and milling area are (iv) Spectator Areas. Northeast Milling Area is an area described by restricted to participants and official Spectator Fleet Area. The area is a line bound by coordinates provided in patrols. bounded by a line commencing at latitude and longitude that outlines the (5) Spectators are only allowed inside position latitude 38°16′59.10″ N, boundary of a milling area within the the regulated area if they remain within longitude 076°37′45.60″ W, thence regulated area defined by this section. a designated spectator area. northeasterly to latitude 38°17′01.76″ N, The area is used before a demonstration (6) The COTP Maryland-National longitude 076°37′43.71″ W, thence start to warm up the boats engines. Capital Region will provide notice of the southeasterly to latitude 38°16′59.23″ N, Official Patrol means any vessel regulated area through advanced notice longitude 076°37′37.25″ W, thence assigned or approved by Commander, via Fifth Coast Guard District Local southwesterly to latitude 38°16′53.32″ Coast Guard Sector Maryland-National Notice to Mariners, broadcast notice to

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mariners, and on-scene designated www.regulations.gov. Follow the online Denver, Colorado 80202–1129, (303) representatives. instructions for submitting comments. 312–6602, [email protected]. (d) Enforcement officials. The Coast Once submitted, comments cannot be SUPPLEMENTARY INFORMATION: The EPA Guard may be assisted with marine edited or removed from issued a proposed rule in the Federal event patrol and enforcement of the www.regulations.gov. The EPA may Register on June 8, 2020 (85 FR 35033). regulated area by other Federal, State, publish any comment received to its There was an error in ‘‘Table 1’’ and local agencies. public docket. Do not submit contained within section ‘‘II. EPA (e) Enforcement periods. This section electronically any information you Evaluation,’’ subsection ‘‘C. Evaluation will be enforced from 8 a.m. to 6 p.m. consider to be Confidential Business of Current Attainment’’ of the June 8, on August 1, 2020, and, from 8 a.m. to Information (CBI) or other information 2020 proposed rule. The table 6 p.m. on August 2, 2020. whose disclosure is restricted by statute. erroneously listed the 2017–2019 98th Dated: June 25, 2020. Multimedia submissions (audio, video, percentiles and design value for the Joseph B. Loring, etc.) must be accompanied by a written Spanish Fork monitor twice; one Captain, U.S. Coast Guard, Captain of the comment. The written comment is correctly within the row for the Spanish Port Maryland-National Capital Region. considered the official comment and Fork monitor and the second incorrectly [FR Doc. 2020–14264 Filed 7–6–20; 8:45 am] should include discussion of all points within the row for the Lindon monitor. BILLING CODE 9110–04–P you wish to make. The EPA will Table 1 should have listed the 98th generally not consider comments or percentiles and design value for the comment contents located outside of the Lindon monitor as: 2017 98th 3 ENVIRONMENTAL PROTECTION primary submission (i.e., on the web, percentile—28.9 mg/m ; 2018 98th 3 AGENCY cloud, or other file sharing system). For percentile—28.4 mg/m ; 2019 98th additional submission methods, the full percentile—21.2 mg/m3; and 2017–2019 40 CFR Part 52 EPA public comment policy, design value—26 mg/m3. This corrective information about CBI or multimedia action does not affect our determination [EPA–R08–OAR–2020–0002; FRL–10011– submissions, and general guidance on that the areas are meeting the NAAQS. 12–Region 8] making effective comments, please visit This correction document does not Determination of Attainment by the http://www2.epa.gov/dockets/ otherwise change the remaining Attainment Date for the Salt Lake City, commenting-epa-dockets. portions of the June 8, 2020 notice of Utah and Provo, Utah 2006 24-Hour Docket: All documents in the docket proposed rulemaking. PM2.5 Nonattainment Areas; Correction are listed in the www.regulations.gov Correction index. Although listed in the index, AGENCY: Environmental Protection In FR Document 2020–12074 some information is not publicly Agency (EPA). appearing on pages 35033–35035 in the available, e.g., CBI or other information ACTION: Federal Register of Monday, June 8, Proposed rule; correction. whose disclosure is restricted by statute. 2020, the following correction is made: Certain other material, such as SUMMARY: The Environmental Protection On page 35035, in Table 1, under the copyrighted material, will be publicly Agency (EPA) published a proposed heading entitled ‘‘NAA’’ in the entry available only in hard copy. Publicly rule in the Federal Register on June 8 entitled ‘‘Provo’’ for ‘‘Lindon’’ available docket materials are available 2020, determining that the Salt Lake monitoring site, remove the text ‘‘27.6’’ either electronically in City, Utah and Provo, Utah Serious associated with column ‘‘98th percentile www.regulations.gov. To reduce the risk PM2.5 nonattainment areas had attained values’’ and ‘‘2017,’’ and replace the of COVID–19 transmission, for this the 2006 24-hour National Ambient Air text with ‘‘28.9’’; remove the text ‘‘49.6’’ action we do not plan to offer hard copy Quality Standard (NAAQS) for PM2.5 associated with column ‘‘98th percentile review of the docket. Please email or and this document corrects information values’’ and ‘‘2018,’’ and replace the call the person listed in the FOR FURTHER displayed in a Table within that text with ‘‘28.4’’; remove the text ‘‘17.5’’ INFORMATION CONTACT section if you proposed rule. associated with column ‘‘98th percentile need to make alternative arrangements DATES: Written comments must be values’’ and ‘‘2019,’’ and replace the for access to the docket. received on or before August 6, 2020. text with ‘‘21.2’’; remove the text ‘‘32’’ ADDRESSES: Submit your comments, FOR FURTHER INFORMATION CONTACT: associated with column ‘‘2017–2019 identified by Docket ID No. EPA–R08– Crystal Ostigaard, Air and Radiation design value,’’ and replace the text with OAR–2020–0002, to the Federal Division, EPA, Region 8, Mailcode ‘‘26.’’ The complete corrected table is Rulemaking Portal: https:// 8ARD–IO, 1595 Wynkoop Street, below:

TABLE 1—SALT LAKE CITY AND PROVO NAAS 2017–2019 24-HOUR PM2.5 AIR QUALITY DATA [μg/m3]

98th percentile values NAA Monitor site Monitor ID 2017–2019 2017 2018 2019 design value

Salt Lake City ...... Bountiful ...... 49–011–0004 35.2 25.7 19.3 27 Rose Park ...... 49–035–3010 32.4 29.2 27.9 30 Hawthorn ...... 49–035–3006 35.7 26.2 27.3 30 Herrimam #3 ...... 49–035–3013 28.2 29.0 18.8 25 Erda ...... 49–045–0004 20.9 30.6 22.9 25 Provo ...... Lindon ...... 49–049–4001 28.9 28.4 21.2 26 Spanish Fork ...... 49–049–5010 27.6 49.6 17.5 32

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List of Subjects in 40 CFR Part 52 Lead, Nitrogen dioxide, Ozone, Dated: June 25, 2020. Particulate matter, Reporting and Gregory Sopkin, Environmental protection, Air pollution control, Carbon monoxide, recordkeeping requirements, Sulfur Regional Administrator, EPA Region 8. Greenhouse gases, Incorporation by oxides, Volatile organic compounds. [FR Doc. 2020–14462 Filed 7–6–20; 8:45 am] reference, Intergovernmental relations, Authority: 42 U.S.C. 7401 et seq. BILLING CODE 6560–50–P

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Notices Federal Register Vol. 85, No. 130

Tuesday, July 7, 2020

This section of the FEDERAL REGISTER register or to submit written comments final agenda available to the public one contains documents other than rules or for dissemination prior to the meeting is week prior to the meeting. Please email proposed rules that are applicable to the 5:00 p.m. EDT on Friday, July 10, 2020. [email protected] for a copy. public. Notices of hearings and investigations, ADDRESSES: The meeting will take place Background: The ETTAC is mandated committee meetings, agency decisions and virtually via Webex. To register and by Section 2313(c) of the Export rulings, delegations of authority, filing of Enhancement Act of 1988, as amended, petitions and applications and agency obtain call-in information, or submit statements of organization and functions are comments, please contact: Mr. Adam 15 U.S.C. 4728(c), to advise the examples of documents appearing in this O’Malley, Office of Energy & Environmental Trade Working Group of section. Environmental Industries (OEEI), the Trade Promotion Coordinating International Trade Administration, via Committee, through the Secretary of email: [email protected]. Commerce, on the development and DEPARTMENT OF COMMERCE FOR FURTHER INFORMATION CONTACT: Mr. administration of programs to expand Adam O’Malley, Office of Energy & U.S. exports of environmental Foreign-Trade Zones Board Environmental Industries (OEEI), technologies, goods, services, and [B–41–2020] International Trade Administration, via products. The ETTAC was most recently phone or email: 202–482–4850, re-chartered through August 16, 2020. Foreign-Trade Zone (FTZ) 22— [email protected]. Dated: June 29, 2020. Chicago, Illinois; Notification of SUPPLEMENTARY INFORMATION: The Man Cho, Proposed Production Activity; Volflex, meeting will take place virtually on July Deputy Director, Office of Energy and Inc.; Correction 21, 2020, from 12:00 to 3:00 p.m. EDT. Environmental Industries. The Federal Register notice published The general meeting is open to the [FR Doc. 2020–14338 Filed 7–6–20; 8:45 am] on June 30, 2020 (85 FR 39163), for the public, and time will be permitted for BILLING CODE 3510–DR–P notification of proposed production public comment from 2:45–3:00 p.m. activity submitted to the FTZ Board on EDT. Members of the public seeking to DEPARTMENT OF COMMERCE behalf of Volflex, Inc., located in attend the meeting are required to Mokena, Illinois, is corrected as follows: register in advance. Those interested in attending must provide notification by National Oceanic and Atmospheric In paragraph 3, the range of duty rates Administration listed at the end of the second sentence Friday, July 10, 2020, at 5:00 p.m. EDT, via the contact information provided should read: ‘‘(duty rate ranges from Agency Information Collection duty-free to 3.7%)’’. above. Activities; Submission to the Office of Written comments concerning ETTAC For further information, contact Management and Budget (OMB) for affairs are welcome any time before or Juanita Chen at [email protected] Review and Approval; Comment after the meeting. To be considered or 202–482–1378. Request; Dr. Nancy Foster Scholarship during the meeting, written comments Program Dated: June 30, 2020. must be received by Friday, July 10, Elizabeth Whiteman, 2020, at 5:00 p.m. EDT to ensure AGENCY: National Oceanic & Acting Executive Secretary. transmission to the members before the Atmospheric Administration (NOAA), [FR Doc. 2020–14590 Filed 7–6–20; 8:45 am] meeting. Minutes will be available Commerce. BILLING CODE 3510–DS–P within 30 days of this meeting. ACTION: Notice of information collection, Topics to be considered: At this final request for comment. meeting of the current (2018–2020) DEPARTMENT OF COMMERCE ETTAC charter, the ETTAC will present SUMMARY: The Department of its recommendations to senior officials Commerce, in accordance with the International Trade Administration from the U.S. Department of Commerce, Paperwork Reduction Act of 1995 then interagency representatives of the (PRA), invites the general public and Environmental Technologies Trade Trade Promotion Coordinating other Federal agencies to comment on Advisory Committee (ETTAC) Public Committee’s Environmental Trade proposed, and continuing information Meeting Working Group (TPCC ETWG) will collections, which helps us assess the AGENCY: International Trade respond to the recommendations that impact of our information collection Administration, Commerce (DOC). the ETTAC presented. The meeting will requirements and minimize the public’s reporting burden. The purpose of this ACTION: Notice of an open meeting of a be co-chaired by senior officials from notice is to allow for 60 days of public Federal advisory committee. the International Trade Administration and the U.S. Environmental Protection comment preceding submission of the SUMMARY: This notice sets forth the Agency. The ETTAC’s recommendation collection to OMB. schedule and proposed agenda of a letters can be found atwww.export.gov/ DATES: To ensure consideration, meeting of the Environmental ettac. The recommendations were comments regarding this proposed Technologies Trade Advisory developed by the ETTAC’s three information collection must be received Committee (ETTAC). subcommittees: Trade Policy and Trade on or before September 8, 2020. DATES: The meeting is scheduled for Negotiations, Trade Promotion and ADDRESSES: Interested persons are July 21, 2020, from 12:00 to 3:00 p.m. Export Market Development, and invited to submit written comments to Eastern Daylight Time (EDT). The Cooperation on Standards, Certifications Adrienne Thomas, NOAA PRA Officer, deadline for members of the public to and Regulations. OEEI will make the at [email protected]. Please

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reference OMB Control Number 0648– Estimated Time per Response: DEPARTMENT OF COMMERCE 0432 in the subject line of your Application and transcripts: 8 hours; comments. Do not submit Confidential Letters of recommendation: 45 minutes; National Oceanic and Atmospheric Business Information or otherwise Biographical sketch and photograph of Administration sensitive or protected information. awardees: 1 hour; Annual progress [RTID 0648–XA255] FOR FURTHER INFORMATION CONTACT: reports: 4 hours; Pre- and post- Requests for additional information or evaluations and exit interview: 10 Mid-Atlantic Fishery Management specific questions related to collection minutes each. Council (MAFMC); Public Meeting activities should be directed to Seaberry Nachbar, Nancy Foster Scholarship Estimated Total Annual Burden AGENCY: National Marine Fisheries Program Manager, NOAA, 99 Pacific Hours: 570 burden hours Service (NMFS), National Oceanic and Street, Monterey, CA 93940, 831–647– Estimated Total Annual Cost to Atmospheric Administration (NOAA), 4204, [email protected]. Public: $3,800. Commerce. ACTION: Notice; public meeting. SUPPLEMENTARY INFORMATION: Respondent’s Obligation: Voluntary I. Abstract Legal Authority: 16 U.S.C. 1445c–1 SUMMARY: The Mid-Atlantic Fishery NOAA’s Office of National Marine and 16 U.S.C. 1445c. Management Council’s (Council) Scientific and Statistical Committee Sanctuaries administers the Dr. Nancy IV. Request for Comments Foster Scholarship Program which (SSC) will hold a meeting. recognizes outstanding achievement in We are soliciting public comments to DATES: The meeting will be held on master’s and doctoral degrees in permit the Department/Bureau to: (a) Wednesday, July 22, 2020, from 9 a.m. oceanography, marine biology, or Evaluate whether the proposed through 5:30 p.m. and Thursday, July 23, 2020, from 8:30 a.m. through 4 p.m. maritime archaeology—this can include information collection is necessary for See SUPPLEMENTARY INFORMATION for but is not limited to ocean and/or the proper functions of the Department, agenda details. coastal: Engineering, social science, including whether the information will ADDRESSES: The meeting will take place marine education, marine stewardship, have practical utility; (b) Evaluate the over webinar with a telephone-only resource management disciplines—and accuracy of our estimate of the time and connection option. Details on how to particularly to encourage women and cost burden for this proposed collection, connect to the webinar by computer and members of minority groups to apply. including the validity of the The scholarship supports independent by telephone will be available at: http:// methodology and assumptions used; (c) graduate level research through www.mafmc.org/ssc. Evaluate ways to enhance the quality, financial support of graduate degrees in Council address: Mid-Atlantic Fishery utility, and clarity of the information to such fields. Gender and minority status Management Council, 800 N. State are not considered when selecting be collected; and (d) Minimize the Street, Suite 201, Dover, DE 19901; award recipients. However, special reporting burden on those who are to telephone: (302) 674–2331; website: outreach efforts are employed to solicit respond, including the use of automated www.mafmc.org. applications from women and members collection techniques or other forms of FOR FURTHER INFORMATION CONTACT: of minority groups. Scholarships are information technology. Christopher M. Moore, Ph.D., Executive distributed by disciplines, institutions, Comments that you submit in Director, Mid-Atlantic Fishery and geography, and by degree sought, response to this notice are a matter of Management Council, telephone: (302) with selections within distributions public record. We will include or 526–5255. based on financial need, the potential summarize each comment in our request SUPPLEMENTARY INFORMATION: The for success in a graduate level studies to OMB to approve this information purpose of this meeting is to make program (academic achievement), and collection request (ICR). Before multi-year acceptable biological catch the potential for achieving research and including your address, phone number, (ABC) recommendations for Atlantic career goals. Data collection in the form email address, or other personal surfclam, ocean quahog, longfin squid, of a full application, letters of identifying information in your and butterfish based on the results of recommendation, grade point average comment, you should be aware that the recently completed management documents, research outline, a letter of your entire comment—including your track stock assessment updates. The financial need statement, and a personal identifying information—may SSC will recommend 2021–26 ABC declaration statement are all required to specifications for Atlantic surfclam and apply for the scholarship. be made publicly available at any time. While you may ask us in your comment ocean quahog; 2021–23 ABC II. Method of Collection to withhold your personal identifying specifications for longfin squid; and 2021–22 ABC specifications for Information is collected through an information from public review, we butterfish. The SSC will also review the application submission, either cannot guarantee that we will be able to most recent survey and fishery data and electronically through the Grants.gov do so. the previously recommended 2021 ABC platform or if internet is not available, Sheleen Dumas, for Atlantic mackerel, bluefish, summer applicants may submit applications via flounder, scup, and black sea bass. For mail. Department PRA Clearance Officer, Office of the Chief Information Officer, Commerce summer flounder, scup, and black sea III. Data Department. bass, the SSC will consider revising the OMB Control Number: 0648–0432. [FR Doc. 2020–14562 Filed 7–6–20; 8:45 am] 2021 ABC recommendation utilizing the Form Number(s): SF–424 BILLING CODE 3510–NK–P new risk policy recently approved by Type of Review: Regular (extension of the Council. The SSC will also review an approved collection). and provide feedback on ongoing Affected Public: Individuals. Council actions, including the Summer Estimated Number of Respondents: Flounder, Scup, and Black Sea Bass 190. Commercial/Recreational Allocation

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Amendment and the Bluefish Allocation Tuesday, July 21, 2020; 9 a.m.–5 p.m. The meeting will be broadcast via and Rebuilding Amendment. In The meeting will begin with webinar. You may register for the addition, the SSC may take up any other Introductions, Adoption of Agenda, webinar by visiting www.gulfcouncil.org business as necessary. Approval of Minutes from the June 29 and clicking on the SSC meeting on the A detailed agenda and background and July 8–9, 2020 webinar meetings. calendar. documents will be made available on Council staff will review the Scope of The Agenda is subject to change, and the Council’s website (www.mafmc.org) Work; and, the Committees will select a the latest version along with other prior to the meeting. SSC Representative for the August 24– meeting materials will be posted on www.gulfcouncil.org as they become Special Accommodations 27, 2020 Gulf Council meeting. Florida Fish and Wildlife Conservation available. The meeting is physically accessible Commission (FWC) staff will review Although other non-emergency issues to people with disabilities. Requests for Southeast Data, Assessment, and not on the agenda may come before the sign language interpretation or other Review (SEDAR) 64—Southeastern US Scientific and Statistical Committees for auxiliary aid should be directed to M. Yellowtail Snapper Stock Assessment; discussion, in accordance with the Jan Saunders, (302) 526–5251, at least 5 with Current and Marine Recreational Magnuson-Stevens Fishery days prior to the meeting date. Information Program (MRIP)-adjusted Conservation and Management Act, those issues may not be the subject of Authority: 16 U.S.C. 1801 et seq. Stock Apportionment between the Gulf formal action during this meeting. Dated: July 1, 2020. of Mexico Fishery Management Council (GMFMC) and South Atlantic Fishery Actions of the Scientific and Statistical Tracey L. Thompson, Management Council (SAFMC); and, Committee will be restricted to those Acting Deputy Director, Office of Sustainable Current and MRIP-adjusted Stock issues specifically identified in the Fisheries, National Marine Fisheries Service. Allocations for the SAFMC. The agenda and any issues arising after [FR Doc. 2020–14566 Filed 7–6–20; 8:45 am] Committees will also receive a Stock publication of this notice that require BILLING CODE 3510–22–P Assessment Executive Summary. emergency action under section 305(c) Committees will review an update of of the Magnuson-Stevens Fishery SEDAR 28—Gulf of Mexico Migratory Conservation and Management Act, DEPARTMENT OF COMMERCE Group Cobia Stock Assessment; provided the public has been notified of including Assessment Presentation and the Council’s intent to take action to National Oceanic and Atmospheric address the emergency. Administration Stock Status Determination, Projections and the Stock Assessment Executive Authority: 16 U.S.C. 1801 et seq. Summary. [RTID 0648–XA258] Dated: July 1, 2020. Wednesday, July 22, 2020; 9 a.m.–5 Tracey L. Thompson, Gulf of Mexico Fishery Management p.m. Acting Deputy Director, Office of Sustainable Council; Public Meeting Fisheries, National Marine Fisheries Service. The Committees will review the July [FR Doc. 2020–14567 Filed 7–6–20; 8:45 am] AGENCY: National Marine Fisheries 13, 2020 MRIP Private Recreational Red BILLING CODE 3510–22–P Service (NMFS), National Oceanic and Snapper Data Calibrations Workshop. Atmospheric Administration (NOAA), The Committees will discuss the NOAA Office of Science and Technology (OST) Commerce. DEPARTMENT OF COMMERCE Calibrations and Southeast Regional ACTION: Notice of a public meeting. Office (SERO) Adjustments to National Oceanic and Atmospheric Calibrations, Next Steps for Data SUMMARY: The Gulf of Mexico Fishery Administration Availability and Data Adjusting; Review Management Council (Council) will [RTID 0648–XA221] hold a three-day meeting via webinar of of State-generated Calibrations; and, SSC Discussion. its Standing, Reef Fish, Mackerel, Endangered and Threatened Species; Ecosystem and Socioeconomic Thursday, July 23, 2020; 9 a.m.–5 p.m. Notice of Initiation of a 5-Year Review Scientific and Statistical Committees The Committees will conclude their of the Dusky Sea Snake (SSC). review the July 13, 2020 MRIP Private AGENCY: National Marine Fisheries DATES: The meeting will be held on Recreational Red Snapper Data Service (NMFS), National Oceanic and Tuesday, July 21, Wednesday, July 22, Calibrations Workshop. The Southeast Atmospheric Administration (NOAA), and Thursday, July 23, 2020, from 9 Fisheries Science Center (SEFSC) will Commerce. review Individual Fishing Quota (IFQ) a.m. to 5 p.m., EDT daily. ACTION: Notice. ADDRESSES: The meeting will take place Capacity and Technical Efficiency via webinar; you may register by visiting study. SEDAR will update the SUMMARY: NMFS announces the www.gulfcouncil.org and clicking on the Committees on the Operational initiation of a 5-year review for the SSC meeting on the calendar. Assessment Process, and Council staff dusky sea snake (Aipysurus fuscus). will review the proposed Timelines and Council address: Gulf of Mexico NMFS is required by the Endangered Stock Identifications Process for SEDAR Fishery Management Council, 4107 W. Species Act (ESA) to conduct 5-year 74—Gulf of Mexico Red Snapper. Spruce Street, Suite 200, Tampa, FL reviews to ensure that the listing Council and SEFSC staff will then 33607; telephone: (813) 348–1630. classifications of species are accurate. review the Shrimp Stock Assessment The 5-year review must be based on the FOR FURTHER INFORMATION CONTACT: Terms of Reference with the best scientific and commercial data Ryan Rindone, Lead Fishery Biologist, Committees. available at the time of the review. We Gulf of Mexico Fishery Management Lastly, the Committees will discuss request submission of any such Council; [email protected], any other business items and receive information on the dusky sea snake, telephone: (813) 348–1630. public comments. particularly information on the status, SUPPLEMENTARY INFORMATION: —Meeting Adjourns threats, and recovery of the species that

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has become available since their listing, Secretary finds that, after conducting a DEPARTMENT OF COMMERCE effective November 6, 2015. status review based on the best DATES: To allow us adequate time to scientific and commercial data National Oceanic and Atmospheric conduct this review, we must receive available: (1) The species is extinct; (2) Administration your information no later than the species does not meet the definition Agency Information Collection September 8, 2020. of an endangered species or a threatened Activities; Submission to the Office of ADDRESSES: You may submit species; and/or (3) the listed entity does not meet the statutory definition of a Management and Budget (OMB) for information on this document, Review and Approval; Comment identified by NOAA–NMFS–2020–0085, species. Any change in Federal classification would require a separate Request; Northeast Region Observer by either of the following methods: Providers Requirements • Electronic Submission: Submit rulemaking process. electronic information via the Federal e- Background information on the AGENCY: National Oceanic & Rulemaking Portal. Go to species is available on the NMFS Atmospheric Administration (NOAA), www.regulations.gov and enter NOAA– website at: https:// Commerce. www.fisheries.noaa.gov/species/dusky- NMFS–2020–0085. Click on the ACTION: Notice of information collection, sea-snake. ‘‘Comment Now!’’ icon and complete request for comment. the required fields. Enter or attach your Public Solicitation of New Information comments. SUMMARY: The Department of To ensure that the reviews are • Mail: Submit written comments to Commerce, in accordance with the complete and based on the best Heather Austin and Grace Carter, Paperwork Reduction Act of 1995 available scientific and commercial Endangered Species Conservation (PRA), invites the general public and information, we are soliciting new Division, Office of Protected Resources, other Federal agencies to comment on information from the public, NMFS, 1315 East-West Highway, Room proposed, and continuing information governmental agencies, Tribes, the 13634, Silver Spring, MD 20910. collections, which helps us assess the Instructions: Comments sent by any scientific community, industry, impact of our information collection other method, to any other address or environmental entities, and any other requirements and minimize the public’s interested parties concerning the status individual, or received after the end of reporting burden. The purpose of this of Aipysurus fuscus. Categories of the specified period, may not be notice is to allow for 60 days of public requested information include: (1) considered. All comments received are comment preceding submission of the Species biology including, but not a part of the public record and will collection to the Office of Management limited to, population trends, generally be posted for public viewing and Budget (OMB). distribution, abundance, demographics, on www.regulations.gov without change. DATES: To ensure consideration, and genetics; (2) habitat conditions All personal identifying information comments regarding this proposed including, but not limited to, amount, (e.g., name, address, etc.), confidential information collection must be received distribution, and important features for business information, or otherwise on or before September 8, 2020. conservation; (3) status and trends of sensitive or protected information threats to the species and its habitats; (4) ADDRESSES: Interested persons are submitted voluntarily by the sender will conservation measures that have been invited to submit written comments to be publicly accessible. NMFS will implemented that benefit the species, Adrienne Thomas, NOAA PRA Officer, accept anonymous submissions (enter including monitoring data at [email protected]. Please ‘‘N/A’’ in the required fields if you wish demonstrating effectiveness of such reference OMB Control Number 0648– to remain anonymous). measures; and (5) other new 0546 in the subject line of your FOR FURTHER INFORMATION CONTACT: information, data, or corrections comments. Do not submit Confidential Heather Austin and Grace Carter at the including, but not limited to, taxonomic Business Information or otherwise above address, by phone at (301) 427– or nomenclatural changes and improved sensitive or protected information. 8422 or [email protected] or analytical methods for evaluating FOR FURTHER INFORMATION CONTACT: [email protected]. extinction risk. If you wish to provide Requests for additional information or SUPPLEMENTARY INFORMATION: This information for the review, you may specific questions related to collection notice announces our review of the submit your information and materials activities should be directed to Alyson dusky sea snake (Aipysurus fuscus) electronically or via mail (see Pitts, Fishery Management Specialist, listed as endangered under the ESA. ADDRESSES section). We request that all 978–281–9352, [email protected]. Section 4(c)(2)(A) of the ESA requires information be accompanied by SUPPLEMENTARY INFORMATION: that we conduct a review of listed supporting documentation such as I. Abstract species at least once every 5 years. This maps, bibliographic references, or will be the first review of this species reprints of pertinent publications. We This request is for extension of a since it was listed in 2015. The also would appreciate the submitter’s currently approved information regulations in 50 CFR 424.21 require name, address, and any association, collection. Under the Magnuson-Stevens that we publish a notice in the Federal institution, or business that the person Fishery Conservation and Management Register announcing species currently represents; however, anonymous Act, the Secretary of Commerce under active review. On the basis of submissions will also be accepted. (Secretary) has the responsibility for the such reviews under section 4(c)(2)(B), conservation and management of marine we determine whether any species Authority: 16 U.S.C. 1531 et seq. fishery resources. Much of this should be removed from the list (i.e., Dated: June 30, 2020. responsibility has been delegated to the delisted) or reclassified from Angela Somma, National Oceanic and Atmospheric endangered to threatened or from Chief, Endangered Species Conservation Administration (NOAA)/National threatened to endangered (16 U.S.C. Division, Office of Protected Resources, Marine Fisheries Service (NMFS). 1533(c)(2)(B)). As described by the National Marine Fisheries Service. Under this stewardship role, the regulations in 50 CFR 424.11(e), the [FR Doc. 2020–14468 Filed 7–6–20; 8:45 am] Secretary was given certain regulatory Secretary shall delist a species if the BILLING CODE 3510–22–P authorities to ensure the most beneficial

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uses of these resources. One of the minutes; observer availability report, 10 DEPARTMENT OF COMMERCE regulatory steps taken to carry out the minutes; safety refusal report, 30 conservation and management minutes; submission of raw observer National Telecommunications and objectives is to collect data from users data, 5 minutes; observer debriefing, 2 Information Administration of the resources. hours; biological samples, 5 minutes; Agency Information Collection Regulations at 50 CFR 648.11(g) rebuttal of pending removal from list of Activities; Submission to the Office of require observer service providers to approved observer service providers, 8 Management and Budget (OMB) for comply with specific requirements in hours; vessel request to observer service Review and Approval; Comment order to operate as an approved provider for procurement of a certified Request; NTIA internet Use Survey provider in the Atlantic sea scallop observer, 25 minutes; vessel request for (scallop) fishery. Observer service waiver of observer coverage AGENCY: National Telecommunications providers must comply with the requirement, 5 minutes; observer and Information Administration (NTIA), following requirements: Submit contact list updates, 5 minutes; observer Commerce. applications for approval as an observer availability updates, 1 minute; service ACTION: Notice of information collection, service provider; formally request provider material submissions, 30 request for comment. observer training by the Northeast minutes; service provider contracts, 30 Fisheries Observer Program (NEFOP); minutes. SUMMARY: The Department of submit observer deployment reports and Commerce, in accordance with the biological samples; give notification of Estimated Total Annual Burden Paperwork Reduction Act of 1995 whether a vessel must carry an observer Hours: 5,675. (PRA), invites the general public and within 24 hours of the vessel owner’s Estimated Total Annual Cost to other Federal agencies to comment on notification of a prospective trip; Public: $46,600. proposed, and continuing information maintain an updated contact list of all collections, which helps us assess the observers that includes the observer IV. Request for Comments impact of our information collection identification number; observer’s name We are soliciting public comments to requirements and minimize the public’s mailing address, email address, phone permit the Department/Bureau to: (a) reporting burden. The purpose of this numbers, homeports or fisheries/trip Evaluate whether the proposed notice is to allow for 60 days of public types assigned, and whether or not the information collection is necessary for comment preceding submission of the observer is ‘‘in service.’’ The regulations the proper functions of the Department, collection to OMB. also require observer service providers including whether the information will DATES: To ensure consideration, submit any outreach materials, such as have practical utility; (b) Evaluate the comments regarding this proposed informational pamphlets, payment accuracy of our estimate of the time and information collection must be received notification, and descriptions of cost burden for this proposed collection, on or before September 8, 2020. observer duties as well as all contracts including the validity of the ADDRESSES: Interested persons are between the service provider and invited to submit written comments to entities requiring observer services for methodology and assumptions used; (c) Evaluate ways to enhance the quality, Rafi Goldberg, Telecommunications review to NMFS/NEFOP. Observer Policy Analyst, NTIA, via email at service providers also have the option to utility, and clarity of the information to be collected; and (d) Minimize the [email protected]. Please reference respond to application denials and OMB Control Number 0660–0021 in the submit a rebuttal in response to a reporting burden on those who are to respond, including the use of automated subject line of your comments. Do not pending removal from the list of submit Confidential Business approved observer providers. These collection techniques or other forms of information technology. Information or otherwise sensitive or requirements allow NMFS/NEFOP to protected information. effectively administer the scallop Comments that you submit in FOR FURTHER INFORMATION CONTACT: observer program. response to this notice are a matter of Requests for additional information or II. Method of Collection public record. We will include or specific questions related to collection summarize each comment in our request The approved observer service activities should be directed to Rafi to OMB to approve this information Goldberg, Telecommunications Policy providers submit information to NMFS/ collection request (ICR). Before NEFOP via email, fax, or postal service. Analyst, NTIA, at (202) 482–4375 or including your address, phone number, [email protected]. III. Data email address, or other personal SUPPLEMENTARY INFORMATION: identifying information in your OMB Control Number: 0648–0546. I. Abstract Form Number: None. comment, you should be aware that Type of Review: Regular submission your entire comment—including your NTIA seeks renewed approval under (extension of a currently approved personal identifying information—may the Paperwork Reduction Act (PRA) to information collection). be made publicly available at any time. add 66 questions to a future edition of Affected Public: Business or other for- While you may ask us in your comment the U.S. Census Bureau’s Current profit organization. to withhold your personal identifying Population Survey (CPS). This Estimated Number of Respondents: information from public review, we collection of questions is known as the 515. cannot guarantee that we will be able to NTIA internet Use Survey, and is also Estimated Time per Response: do so. referred to as the CPS Computer and Application for approval of observer internet Use Supplement. NTIA has service provider, 10 hours; applicant Sheleen Dumas, sponsored fifteen such surveys since response to denial of application for Department PRA Clearance Officer, Office of 1994, and previously used the current approval of observer service provider, the Chief Information Officer, Commerce iteration of the survey instrument in 10 hours; observer service provider Department. 2017 and 2019. request for observer training, 30 [FR Doc. 2020–14563 Filed 7–6–20; 8:45 am] As the digital economy’s accelerating minutes; observer deployment report, 10 BILLING CODE 3510–22–P growth reinforces the internet’s

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importance to the nation’s economic Commerce Department and NTIA to personal identifying information—may prosperity, policymakers, businesses, respond to congressional concerns and be made publicly available at any time. non-profits, communities, and other directives. While you may ask us in your comment stakeholders increasingly rely on data NTIA has made a copy of the to withhold your personal identifying about whether and how Americans use proposed information collection information from public review, we broadband in their routine activities. instrument available at https:// cannot guarantee that we will be able to Digitally-connected Americans provide www.ntia.gov/files/ntia/blogimages/ do so. the modern workforce, creative november_2019_cps_supplement_-_ innovation, and growing customer base final.pdf. Sheleen Dumas, to help sustain our nation’s global Department PRA Clearance Officer, Office of competitiveness; the NTIA internet Use II. Method of Collection the Chief Information Officer, Commerce Department. Survey will yield data that can inform The NTIA internet Use Survey will be investment decisions and resource administered by the U.S. Census Bureau [FR Doc. 2020–14545 Filed 7–6–20; 8:45 am] allocations to advance full participation as a supplement to the CPS. Data will BILLING CODE 3510–60–P in the digital economy. The research be collected through personal visits and and policy analysis enabled by this data live telephone interviews using DEPARTMENT OF COMMERCE collection are particularly important as computer-assisted telephone the nation recovers from a pandemic interviewing and computer-assisted National Telecommunications and that has further highlighted the personal interviewing. Information Administration importance of the internet in daily life. NTIA is working with Congress, the III. Data [Docket No. 200609–0154] Federal Communications Commission OMB Control Number: 0660–0021. RIN 0660–XC046 (FCC), other federal agencies, state and Form Number(s): None. local governments, as well as with Type of Review: Regular submission Promoting the Sharing of Supply Chain industry and nonprofits to develop and (Extension of a current information Security Risk Information Between promote policies that foster broadband collection). Government and Communications Affected Public: Individuals and deployment and adoption. These Providers and Suppliers policies help to ensure that the nation’s households. businesses and consumers can obtain Estimated Number of Respondents: AGENCY: National Telecommunications competitively priced high-speed 54,000 households. and Information Administration, U.S. internet access and that everyone is able Estimated Time per Response: 10 Department of Commerce. to gain the skills necessary to use the minutes. ACTION: Notice; extension of comment technology. Collecting current, Estimated Total Annual Burden period. systematic, and comprehensive Hours: 9,000. information on broadband use and non- Estimated Total Annual Cost to SUMMARY: On June 12, 2020, the use by U.S. households is critical to Public: $0. National Telecommunications and enabling policymakers to gauge progress Respondent’s Obligation: Voluntary. Information Administration (NTIA) made to date, and also to identify Legal Authority: 47 U.S.C. published a Notice and Request for specific areas and demographic groups 902(b)(2)(M), (P). public comments on Section 8 of the in which broadband adoption is a IV. Request for Comments Secure and Trusted Communications concern with a specificity that permits Network Act of 2019 (Act). Section 8 of carefully targeted and cost-effective We are soliciting public comments to the Act directs NTIA, in cooperation responses. permit NTIA to: (a) Evaluate whether with other designated federal agencies, The U.S. Census Bureau is widely the proposed information collection is to establish a program to share supply regarded as a premier data collector necessary for the proper functions of the chain security risk information with based on centuries of experience and Department, including whether the trusted providers of advanced rigorous scientific methods. Collection information will have practical utility; communications service and suppliers of NTIA’s requested broadband usage (b) Evaluate the accuracy of our estimate of communications equipment or data will occur in conjunction with a of the time and cost burden for this services. Through this Notice, NTIA is future edition of the U.S. Census proposed collection, including the extending the comment deadline by 15 Bureau’s CPS, thereby significantly validity of the methodology and days from July 13, 2020, to July 28, reducing the potential burdens on the assumptions used; (c) Evaluate ways to 2020. U.S. Census Bureau and on surveyed enhance the quality, utility, and clarity households. of the information to be collected; and DATES: Comments must be received on The U.S. government has an (d) Minimize the reporting burden on or before July 28, 2020. increasingly pressing need for those who are to respond, including the ADDRESSES: Written comments may be comprehensive broadband data. The use of automated collection techniques submitted by email to supplychaininfo@ U.S. Government Accountability Office or other forms of information ntia.gov. Written comments also may be (GAO), NTIA, and the FCC have issued technology. submitted by mail to the National reports noting the importance of useful Comments that you submit in Telecommunications and Information broadband adoption data for response to this notice are a matter of Administration, U.S. Department of policymakers. Moreover, Congress public record. We will include or Commerce, 1401 Constitution Avenue passed legislation—the Broadband Data summarize each comment in our request NW, Room 4725, Attn: Evelyn L. Improvement Act in 2008 and the to OMB to approve this ICR. Before Remaley, Associate Administrator, American Recovery and Reinvestment including your address, phone number, Office of Policy Analysis and Act in 2009—wholly or in part to email address, or other personal Development, Washington, DC 20230. address this deficiency. Modifying the identifying information in your Responders should include the name of CPS to include NTIA’s requested comment, you should be aware that the person or organization filing the broadband questions will enable the your entire comment—including your comment, as well as a page number, on

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each page of their submissions. All 13, 2020. With today’s Notice, NTIA soliciting comments on the proposed comments received are a part of the extends the comment deadline by 15 information collection request (ICR) that public record and will generally be days until July 28, 2020. All other is described below. The Department of posted to http://www.ntia.doc.gov/ information in the June 12, 2020, Notice Education is especially interested in without change. All personal identifying and Request for public comments public comment addressing the information (e.g., name, address) remain unchanged. following issues: (1) Is this collection voluntarily submitted by the commenter Dated: June 30, 2020. necessary to the proper functions of the may be publicly accessible. Do not Kathy Smith, Department; (2) will this information be submit Confidential Business processed and used in a timely manner; Information or otherwise sensitive or Chief Counsel, National Telecommunications and Information Administration. (3) is the estimate of burden accurate; protected information. NTIA will also (4) how might the Department enhance accept anonymous comments. [FR Doc. 2020–14477 Filed 7–6–20; 8:45 am] the quality, utility, and clarity of the FOR FURTHER INFORMATION CONTACT: BILLING CODE 3510–60–P information to be collected; and (5) how Megan Doscher, National might the Department minimize the Telecommunications and Information Administration, U.S. Department of DEPARTMENT OF EDUCATION burden of this collection on the respondents, including through the use Commerce, 1401 Constitution Avenue [Docket No. ED–2020–SCC–0107] NW, Room 4725, Washington, DC of information technology. Please note 20230; telephone (202) 482–2503; Agency Information Collection that written comments received in [email protected]. Please direct media Activities; Submission to the Office of response to this notice will be inquiries to NTIA’s Office of Public Management and Budget for Review considered public records. Affairs, (202) 482–7002, or at press@ and approval; Comment Request; Title of Collection: Education ntia.gov. Education Stabilization Fund— Stabilization Fund—Reimagine SUPPLEMENTARY INFORMATION: Section 8 Reimagine Workforce Preparation Workforce Preparation Grants. Grants of the Secure and Trusted OMB Control Number: 1830–NEW. Communications Network Act of 2019 AGENCY: Office of Career, Technical and (Act) directs NTIA, in cooperation with Type of Review: New information Adult Education, Department of collection. the Office of the Director of National Education (ED). Intelligence, the Department of Respondents/Affected Public: State, ACTION: Notice. Homeland Security (DHS), the Federal Local or Tribal Governments. Bureau of Investigation, and the Federal SUMMARY: In accordance with the Total Estimated Number of Annual Communications Commission (FCC), to Paperwork Reduction Act of 1995, ED is Responses: 40. establish a program to share ‘‘supply proposing a new information collection. chain security risk’’ information with Total Estimated Number of Annual DATES: Interested persons are invited to Burden Hours: 1,600. trusted providers of ‘‘advanced submit comments on or before August 6, communications service’’ and suppliers 2020. Abstract: This is a request for of communications equipment or approval of an information collection ADDRESSES: Written comments and services. As part of that program, NTIA which solicits applications for recommendations for proposed must ‘‘conduct regular briefings and Education Stabilization Fund— other events’’ to share information with information collection requests should be sent within 30 days of publication of Reimagine Workforce Preparation trusted providers and suppliers and Grants (ESF–RWP), which is authorized ‘‘engage’’ with such providers and this notice to www.reginfo.gov/public/ do/PRAMain. Find this particular by section 18001(a)(3) of Division B of suppliers, particularly those that are the Coronavirus Aid, Relief, and small businesses or that primarily serve information collection request by selecting ‘‘Department of Education’’ Economic Security Act (CARES Act). rural areas. NTIA must also develop, The collection request includes a notice and submit to Congress, a plan for under ‘‘Currently Under Review,’’ then inviting applications and an declassifying material, when feasible, check ‘‘Only Show ICR for Public accompanying application package. and expediting and expanding the Comment’’ checkbox. These documents set out the selection provision of security clearances to FOR FURTHER INFORMATION CONTACT: For facilitate information sharing from the specific questions related to collection criteria used to assess the quality of Federal government to trusted providers activities, please contact Braden Goetz, applications and establish application and suppliers. On June 12, 2020, NTIA 202–245–7405. requirements and the performance published a Notice and Request for SUPPLEMENTARY INFORMATION: The indicators on which grantees must public comments seeking public Department of Education (ED), in report. This discretionary grant falls comment on several key terms in the accordance with the Paperwork under the Streamlined Clearance Act, as well as on steps that should be Reduction Act of 1995 (PRA) (44 U.S.C. Process for Discretionary Grant taken to best achieve the purposes of the 3506(c)(2)(A)), provides the general Information Collections, 1894–0001. Act. See NTIA, Notice; Request for public and Federal agencies with an Dated: June 30, 2020. public comments, Promoting the opportunity to comment on proposed, Kate Mullan, Sharing of Supply Chain Security Risk revised, and continuing collections of Information Between Government and information. This helps the Department PRA Coordinator, Strategic Collections and Clearance, Governance and Strategy Division, Communications Providers and assess the impact of its information Office of Chief Data Officer, Office of Suppliers, 85 FR 35919 (June 12, 2020), collection requirements and minimize Planning, Evaluation and Policy available at: https://www.ntia.gov/files/ the public’s reporting burden. It also Development. ntia/publications/fr-rfc-promoting- helps the public understand the [FR Doc. 2020–14470 Filed 7–6–20; 8:45 am] sharing-supply-chain-security-risk- Department’s information collection information.pdf. The original deadline requirements and provide the requested BILLING CODE 4000–01–P for submission of comments was July data in the desired format. ED is

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DEPARTMENT OF EDUCATION opportunity to comment through the CARES Act programs). Section 18005(a) regular clearance process. This of the CARES Act requires an LEA that [Docket No.: ED–2020–SCC–0109] information collection will be receives funds under the GEER Fund or transferred to the information collection Agency Information Collection the ESSER Fund to provide equitable requests, 1810–0741 and 1810–0743, to Activities; Comment Request; CARES services in the same manner as provided complete the comment period process. Act Programs; Equitable Services to under section 1117 of the Elementary The Department of Education (ED), in Students and Teachers in Non-Public and Secondary Education Act of 1965 accordance with the Paperwork Schools (ESEA) to students and teachers in non- Reduction Act of 1995 (PRA) (44 U.S.C. public schools, as determined in AGENCY: Office of Elementary and 3506(c)(2)(A)), provides the general consultation with representatives of public and Federal agencies with an Secondary Education (OESE), non-public schools. This is a request for opportunity to comment on proposed, Department of Education (ED). an emergency paperwork clearance from ACTION: Notice. revised, and continuing collections of information. This helps the Department OMB on the data collections associated SUMMARY: In accordance with the assess the impact of its information with the interim final rule. Paperwork Reduction Act of 1995, ED is collection requirements and minimize Additional Information: An requesting the Office of Management the public’s reporting burden. It also emergency clearance approval for the and Budget (OMB) to conduct an helps the public understand the use of the system is described below emergency review of a new collection. Department’s information collection due to the following conditions: DATES: Emergency approval by the OMB requirements and provide the requested data in the desired format. ED is Pursuant to the Office of Management has been requested by July 1, 2020 as it and Budget (OMB) procedures relates to the published Interim Final soliciting comments on the proposed established at 5 CFR part 1320, the U.S. Rule on the CARES Act Programs; information collection request (ICR) that Department of Education (Department) Equitable Services to Students and is described below. The Department of Teachers in Non-Public Schools (85 FR Education is especially interested in requests that the following collection of 39479). Interested persons are invited to public comment addressing the information, non-public school poverty submit comments on or before following issues: (1) Is this collection count and enrollment data to be September 8, 2020. necessary to the proper functions of the collected by local educational agencies Department; (2) will this information be (LEAs) that receive funds under the ADDRESSES: To access and review all the processed and used in a timely manner; documents related to the information Governor’s Emergency Education Relief (3) is the estimate of burden accurate; collection listed in this notice, please Fund (GEER Fund) and the Elementary (4) how might the Department enhance use http://www.regulations.gov by and Secondary School Emergency Relief the quality, utility, and clarity of the searching the Docket ID number ED– Fund (ESSER Fund) (collectively, the information to be collected; and (5) how 2020–SCC–0109. Comments submitted CARES Act programs), be processed in might the Department minimize the in response to this notice should be accordance with § 1320.13 Emergency burden of this collection on the submitted electronically through the Processing. The Department is issuing respondents, including through the use Federal eRulemaking Portal at http:// an interim final rule, Equitable Services of information technology. Please note www.regulations.gov by selecting the to Students and Teachers in Non-Public that written comments received in Docket ID number or via postal mail, Schools, to clarify the requirement in response to this notice will be commercial delivery, or hand delivery. considered public records. section 18005 of Division B of the If the regulations.gov site is not Title of Collection: CARES Act Coronavirus Aid, Relief, and Economic available to the public for any reason, Programs; Equitable Services to Security Act (CARES Act) that LEAs ED will temporarily accept comments at Students and Teachers in Non-Public provide equitable services to students [email protected]. Please include the Schools. and teachers in non-public schools docket ID number and the title of the OMB Control Number: 1810–NEW. under the CARES Act programs. The information collection request when Type of Review: New information Department has determined that LEAs requesting documents or submitting collection. must collect this information prior to comments. Please note that comments Respondents/Affected Public: State, the expiration of the time periods submitted by fax or email and those Local or Tribal Governments. established under part 1320, and that submitted after the comment period will Total Estimated Number of Annual approval of this information collection not be accepted. Written requests for Responses: 1,900. is essential for LEAs to effectively information or comments submitted by Total Estimated Number of Annual implement the interim final rule. postal mail or delivery should be Burden Hours: 76,393. Therefore, the Department is requesting addressed to the Director of the Strategic Abstract: The U.S. Department of emergency approval to provide LEAs Collections and Clearance Governance Education (Department) is issuing an and Strategy Division, U.S. Department the means to carry out the CARES Act interim final rule to clarify the programs as intended. of Education, 400 Maryland Ave. SW, requirement in section 18005 of LBJ, Room 6W208D, Washington, DC Division B of the Coronavirus Aid, Dated: July 1, 2020. 20202–8240. Relief, and Economic Security Act Kate Mullan, FOR FURTHER INFORMATION CONTACT: For (CARES Act) that local educational PRA Coordinator, Strategic Collections and specific questions related to collection agencies (LEAs) provide equitable Clearance, Governance and Strategy Division, activities, please contact Andrew Brake, services to students and teachers in non- Office of Chief Data Officer, Office of 202–453–6136. public schools under the Governor’s Planning, Evaluation and Policy SUPPLEMENTARY INFORMATION: Since this Emergency Education Relief Fund Development. collection was approved through (GEER Fund) and the Elementary and [FR Doc. 2020–14550 Filed 7–6–20; 8:45 am] emergency processing, the Department Secondary School Emergency Relief BILLING CODE 4000–01–P is providing the public with an Fund (ESSER Fund) (collectively, the

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DEPARTMENT OF EDUCATION response to this notice will be Dated: June 30, 2020. considered public records. Stephanie Valentine, [Docket No.: ED–2019–SCC–0119] Title of Collection: Mandatory Civil PRA Coordinator, Strategic Collections and Agency Information Collection Rights Data Collection. Clearance, Governance and Strategy Division, Activities; Submission to the Office of Office of Chief Data Officer, Office of OMB Control Number: 1870–0504. Planning, Evaluation and Policy Management and Budget for Review Development. and Approval; Comment Request; Type of Review: Revision of an [FR Doc. 2020–14486 Filed 7–6–20; 8:45 am] Mandatory Civil Rights Data Collection existing information collection. BILLING CODE 4000–01–P Respondents/Affected Public: State, AGENCY: Department of Education (ED). Local or Tribal Governments. ACTION: Notice. Total Estimated Number of Annual DEPARTMENT OF EDUCATION SUMMARY: In accordance with the Responses: 17,621. [Docket No.: ED–2020–SCC–0110] Paperwork Reduction Act of 1995, ED is Total Estimated Number of Annual proposing a revision to an existing Burden Hours: 1,487,068. Agency Information Collection information collection. Activities; Submission to the Office of DATES: Interested persons are invited to Abstract: The collection, use, and Management and Budget for Review submit comments on or before August 6, reporting of education data is an integral and Approval; Comment Request; 2020. component of the mission of the U.S. Application for the U.S. Presidential ADDRESSES: Written comments and Department of Education (ED). EDFacts, Scholars Program an ED initiative to put performance data recommendations for proposed AGENCY: Office of Communications and information collection requests should at the center of ED’s policy, management, and budget decision- Outreach (OCO), Department of be sent within 30 days of publication of Education (ED). this notice to www.reginfo.gov/public/ making processes for all K–12 education ACTION: Notice. do/PRAMain. Find this particular programs, has transformed the way in information collection request by which ED collects and uses data. For SUMMARY: In accordance with the selecting ‘‘Department of Education’’ school years 2009–10 and 2011–12, the Paperwork Reduction Act of 1995, ED is under ‘‘Currently Under Review,’’ then Civil Rights Data Collection (CRDC) was proposing a change to an existing check ‘‘Only Show ICR for Public approved by OMB as part of the EDFacts information collection. Comment’’ checkbox. information collection (1875–0240). For DATES: Interested persons are invited to FOR FURTHER INFORMATION CONTACT: For school years 2013–14, 2015–16, and submit comments on or before August 6, specific questions related to collection 2017–18, the Office for Civil Rights 2020. activities, please contact Rosa Olmeda, (OCR) cleared the CRDC as a separate ADDRESSES: To access and review all the 202–453–5968. collection from EDFacts. The currently documents related to the information SUPPLEMENTARY INFORMATION: The proposed revised CRDC information collection listed in this notice, please Department of Education (ED), in collection for school year 2020–21 is use http://www.regulations.gov by accordance with the Paperwork modeled after the most recent OMB- searching the Docket ID number ED– Reduction Act of 1995 (PRA) (44 U.S.C. approved EDFacts information 2020–SCC–0110. Comments submitted 3506(c)(2)(A)), provides the general collection (1850–0925). For the 2020–21 in response to this notice should be public and Federal agencies with an CRDC, OCR is proposing some changes, submitted electronically through the opportunity to comment on proposed, and those changes will have the net Federal eRulemaking Portal at http:// revised, and continuing collections of effect of reducing burden on school www.regulations.gov by selecting the information. This helps the Department districts. As with previous CRDC Docket ID number or via postal mail, assess the impact of its information collections, the purpose of the 2020–21 commercial delivery, or hand delivery. collection requirements and minimize CRDC is to obtain vital data related to If the regulations.gov site is not available to the public for any reason, the public’s reporting burden. It also the civil rights laws’ requirement that ED will temporarily accept comments at helps the public understand the public local educational agencies (LEAs) [email protected]. Please include the Department’s information collection and elementary and secondary schools requirements and provide the requested docket ID number and the title of the provide equal educational opportunity. data in the desired format. ED is information collection request when ED has analyzed the uses of many data soliciting comments on the proposed requesting documents or submitting elements collected in the 2013–14 and information collection request (ICR) that comments. Please note that comments is described below. The Department of 2015–16 CRDCs and sought advice from submitted by fax or email and those Education is especially interested in experts across ED to refine, improve, submitted after the comment period will public comment addressing the and where appropriate, add or remove not be accepted. Written requests for following issues: (1) Is this collection data elements from the collection. ED information or comments submitted by necessary to the proper functions of the also made the CRDC data definitions postal mail or delivery should be Department; (2) will this information be and metrics consistent with other addressed to the Program Manager of processed and used in a timely manner; mandatory collections across ED Strategic Collections and Clearance, (3) is the estimate of burden accurate; wherever possible. ED seeks OMB U.S. Department of Education, 400 (4) how might the Department enhance approval under the Paperwork Maryland Avenue SW, LBJ, Room the quality, utility, and clarity of the Reduction Act to collect from LEAs, the 6W208B, Washington, DC 20202–8240. information to be collected; and (5) how elementary and secondary education FOR FURTHER INFORMATION CONTACT: For might the Department minimize the data described in the sections of specific questions related to collection burden of this collection on the Attachment A. In addition, ED requests activities, please contact Simone Olson, respondents, including through the use that LEAs and other stakeholders 202–245–8719. of information technology. Please note respond to the directed questions found SUPPLEMENTARY INFORMATION: The that written comments received in in Attachment A–5. Department of Education (ED), in

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accordance with the Paperwork with an option which was not available LP, GenOn REMA, LLC, Gilbert Power, Reduction Act of 1995 (PRA) (44 U.S.C. before. LLC, Hamilton Power, LLC, Heritage 3506(c)(2)(A)), provides the general Dated: July 1, 2020. Power Marketing, LLC, Hunterstown public and Federal agencies with an Stephanie Valentine, Power, LLC, Niles Power, LLC, Orrtanna opportunity to comment on proposed, Power, LLC, New Castle Power, LLC, PRA Coordinator, Strategic Collections and revised, and continuing collections of Clearance, Governance and Strategy Division, Mountain Power, LLC, Portland Power, information. This helps the Department Office of Chief Data Officer, Office of LLC, Sayreville Power, LLC, Shawnee assess the impact of its information Planning, Evaluation and Policy Power, LLC, Shawville Power, LLC, collection requirements and minimize Development. Titus Power, LLC, Tolna Power, LLC, the public’s reporting burden. It also [FR Doc. 2020–14556 Filed 7–6–20; 8:45 am] Warren Generation, LLC. helps the public understand the BILLING CODE 4000–01–P Description: Updated Market Power Department’s information collection Analysis for the Northeast Region of the requirements and provide the requested GenOn Holdings, Inc. subsidiaries. data in the desired format. ED is DEPARTMENT OF ENERGY Filed Date: 6/26/20. soliciting comments on the proposed Accession Number: 20200626–5398. information collection request (ICR) that Federal Energy Regulatory Comments Due: 5 p.m. ET 8/25/20. is described below. The Department of Commission Docket Numbers: ER20–1981–000; Education is especially interested in ER20–1983–000. public comment addressing the Combined Notice of Filings #1 Applicants: Pioneer Solar (CO), LLC. following issues: (1) Is this collection Description: Joint Supplement to June necessary to the proper functions of the Take notice that the Commission 3, 2020 Pioneer Solar (CO), LLC, et al. Department; (2) will this information be received the following exempt tariff filings. processed and used in a timely manner; wholesale generator filings: Filed Date: 6/26/20. (3) is the estimate of burden accurate; Docket Numbers: EG20–198–000. Accession Number: 20200626–5404. (4) how might the Department enhance Applicants: Cassadaga Wind LLC. Comments Due: 5 p.m. ET 7/17/20. the quality, utility, and clarity of the Description: Notice of Self- Docket Numbers: ER20–2201–000. information to be collected; and (5) how Certification of Exempt Wholesale Applicants: GridLiance High Plains might the Department minimize the Generator Status of Cassadaga Wind LLC. burden of this collection on the LLC. Description: Baseline eTariff Filing: respondents, including through the use Filed Date: 6/26/20. Gridliance HP Winfield Joint Ownership of information technology. Please note Accession Number: 20200626–5352. Agreement to be effective 9/1/2020. that written comments received in Comments Due: 5 p.m. ET 7/17/20. Filed Date: 6/26/20. response to this notice will be Docket Numbers: EG20–199–000. Accession Number: 20200626–5283. considered public records. Applicants: Boswell Wind, LLC. Comments Due: 5 p.m. ET 7/17/20. Title of Collection: Application for the Description: Self-Certification of EWG Docket Numbers: ER20–2202–000. U.S. Presidential Scholars Program. Status of Boswell Wind, LLC. Applicants: Cassadaga Wind LLC. OMB Control Number: 1860–0504. Filed Date: 6/29/20. Description: Baseline eTariff Filing: Type of Review: Change to an existing Accession Number: 20200629–5333. Application for Market-Based Rate information collection. Comments Due: 5 p.m. ET 7/20/20. Authorization and Request for Waivers Respondents/Affected Public: Take notice that the Commission to be effective 8/26/2020. Individuals or households. received the following electric rate Filed Date: 6/26/20. Total Estimated Number of Annual filings: Accession Number: 20200626–5289. Responses: 3,300. Docket Numbers: ER10–2414–000. Comments Due: 5 p.m. ET 7/17/20. Total Estimated Number of Annual Applicants: Old Trail Wind Farm, Docket Numbers: ER20–2203–000. Burden Hours: 52,800. LLC. Applicants: PJM Interconnection, Abstract: The United States Description: Updated Market Power L.L.C. Presidential Scholars Program is a Analysis for the Northeast Region of Old Description: § 205(d) Rate Filing: national recognition program to honor Trail Wind Farm, LLC. Revised WMPA, Service Agreement No. outstanding graduating high school Filed Date: 6/26/20. 4869; Queue No. AF1–248 to be seniors. Candidates are invited to apply Accession Number: 20200626–5393. effective 5/28/2020. based on academic achievements on the Comments Due: 5 p.m. ET 8/25/20. Filed Date: 6/26/20. SAT or ACT assessments, through Docket Numbers: ER11–2508–025; Accession Number: 20200626–5297. nomination from Chief State School ER11–2863–012; ER19–1411–001 ER19– Comments Due: 5 p.m. ET 7/17/20. Officers, other recognition program 1412–001; R19–1413–001; ER19–1417– Docket Numbers: ER20–2204–000. partner organizations, on artistic merits 002 ER19–1865–001; ER19–1866–001; Applicants: Tri-State Generation and based on participation in a national ER19–1867–001 ER19–1868–001; ER19– Transmission Association, Inc. talent program and achievement in 1869–001; ER19–1870–001 ER19–1871– Description: Tariff Cancellation: career and technical education 001; ER19–1872–001; ER19–2140–002 Notice of Cancellation of Service programs. This program was established ER19–2141–002; ER19–2142–002; Agreement No. 818 to be effective 8/31/ by Presidential Executive Orders 11155, ER19–2143–002 ER19–2144–002; ER19– 2020. 12158 and 13697. The proposed change 2145–002; ER19–2146–002 ER19–2147– Filed Date: 6/29/20. to the candidate portion of the 002; ER19–2148–002; ER20–1887–001. Accession Number: 20200629–5252. Presidential Scholars application is to Applicants: GenOn Energy Comments Due: 5 p.m. ET 7/20/20. give the applicants a choice between Management, LLC, Blossburg Power, Docket Numbers: ER20–2205–000. two questions for a short answer essay. LLC, Brunot Island Power, LLC, Chalk Applicants: Southwest Power Pool, Question A is currently on the Point Steam, LLC, GenOn Bowline, LLC, Inc. application. Question B is a new GenOn Canal, LLC, GenOn Mid- Description: § 205(d) Rate Filing: 3691 question and will provide the candidate Atlantic, LLC, GenOn Power Midwest, MidAmerican Energy, Evergy Missouri

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West & MISO Int Agr to be effective 8/ Applicants: FirstLight CT Housatonic III–B Revisions to be effective 1/27/ 28/2020. LLC. 2020. Filed Date: 6/29/20. Description: § 205(d) Rate Filing: Filed Date: 6/29/20. Accession Number: 20200629–5259. Revised Market-Based Rate Tariff to be Accession Number: 20200629–5342. Comments Due: 5 p.m. ET 7/20/20. effective 6/30/2020. Comments Due: 5 p.m. ET 7/20/20. Docket Numbers: ER20–2206–000. Filed Date: 6/29/20. Docket Numbers: ER20–2220–000. Applicants: Southwest Power Pool, Accession Number: 20200629–5296. Applicants: NorthWestern Inc. Comments Due: 5 p.m. ET 7/20/20. Corporation. Description: § 205(d) Rate Filing: Docket Numbers: ER20–2213–000. Description: Tariff Cancellation: 3038R1 Evergy Metro & AECI Applicants: FirstLight CT Hydro LLC. Cancellation of SA 877, Firm PTP TSA Interconnection Agreement to be Description: § 205(d) Rate Filing: with Energy Keepers, Inc. to be effective effective 8/28/2020. Revised Market-Based Rate Tariff to be 9/1/2020. Filed Date: 6/29/20. effective 6/30/2020. Filed Date: 6/29/20. Accession Number: 20200629–5267. Filed Date: 6/29/20. Accession Number: 20200629–5344. Comments Due: 5 p.m. ET 7/20/20. Accession Number: 20200629–5298. Comments Due: 5 p.m. ET 7/20/20. Docket Numbers: ER20–2207–000. Comments Due: 5 p.m. ET 7/20/20. Docket Numbers: ER20–2221–000. Applicants: PJM Interconnection, Docket Numbers: ER20–2214–000. Applicants: AEP Texas Inc. L.L.C. Applicants: FirstLight MA Hydro Description: § 205(d) Rate Filing: Description: § 205(d) Rate Filing: LLC. AEPTX-Rayos Del Sol Solar 3rd Amendment to ISA, SA No. 3917, Description: § 205(d) Rate Filing: Amended and Restated Interconnection Queue No. Y1—047/Y2–060/Z2–103/ Revised Market-Based Rate Tariff to be Agreement to be effective 6/11/2020. AD1–110 (amend) to be effective 6/22/ effective 6/30/2020. Filed Date: 6/29/20. 2018. Filed Date: 6/29/20. Accession Number: 20200629–5368. Filed Date: 6/29/20. Accession Number: 20200629–5301. Comments Due: 5 p.m. ET 7/20/20. Comments Due: 5 p.m. ET 7/20/20. Accession Number: 20200629–5278. Docket Numbers: ER20–2222–000. Comments Due: 5 p.m. ET 7/20/20. Docket Numbers: ER20–2215–000. Applicants: Crystal Lake Wind III, Docket Numbers: ER20–2208–000. Applicants: ISO New England Inc., LLC. Applicants: PJM Interconnection, Fitchburg Gas and Electric Light Description: Baseline eTariff Filing: L.L.C. Company. Reactive Power Compensation Filing to Description: § 205(d) Rate Filing: Description: § 205(d) Rate Filing: be effective 8/28/2020. Amendment to ISA, SA No. 4242, Fitchburg Gas and Electric Light Filed Date: 6/29/20. Queue No. Z1–092/AD1–142 (amend) to Company; Request for Updated Accession Number: 20200629–5369. be effective 4/24/2018. Depreciation Rates to be effective 3/1/ Comments Due: 5 p.m. ET 7/20/20. Filed Date: 6/29/20. 2020. Filed Date: 6/29/20. Docket Numbers: ER20–2223–000. Accession Number: 20200629–5280. Applicants: Blossburg Power, LLC. Comments Due: 5 p.m. ET 7/20/20. Accession Number: 20200629–5303. Comments Due: 5 p.m. ET 7/20/20. Description: § 205(d) Rate Filing: Docket Numbers: ER20–2209–000. Market-Based Rate Tariff Revisions to be Docket Numbers: ER20–2216–000. Applicants: PJM Interconnection, effective 6/30/2020. Applicants: Midcontinent L.L.C. Filed Date: 6/29/20. Independent System Operator, Inc. Description: § 205(d) Rate Filing: Accession Number: 20200629–5366. Description: Compliance filing: 2020– Amendment to ISA, Service Agreement Comments Due: 5 p.m. ET 7/20/20. 06–29_SA 3010 ITC–NSP 1st Rev GIA No. 4355, Queue No. Z2–011/AD1–109 (J407) to be effective 6/22/2020. Docket Numbers: ER20–2224–000. (amend) to be effective 5/10/2018. Filed Date: 6/29/20. Applicants: GenOn Mid-Atlantic, Filed Date: 6/29/20. Accession Number: 20200629–5304. LLC. Accession Number: 20200629–5281. Comments Due: 5 p.m. ET 7/20/20. Description: § 205(d) Rate Filing: Comments Due: 5 p.m. ET 7/20/20. Docket Numbers: ER20–2217–000. Market-Based Rate Tariff Revisions to be Docket Numbers: ER20–2210–000. Applicants: Midcontinent effective 6/30/2020. Applicants: PJM Interconnection, Independent System Operator, Inc. Filed Date: 6/29/20. L.L.C. Description: Compliance filing: 2020– Accession Number: 20200629–5354. Description: § 205(d) Rate Filing: 06–29_SA 3508 ITC–NSP FSA (J407) to Comments Due: 5 p.m. ET 7/20/20. Amendment to ISA, SA No. 5067 among be effective 6/22/2020. Docket Numbers: ER20–2225–000. PJM, Wolf Run Energy LLC and MAIT Filed Date: 6/29/20. Applicants: PJM Interconnection, (amend) to be effective 4/11/2018. Accession Number: 20200629–5307. L.L.C. Filed Date: 6/29/20. Comments Due: 5 p.m. ET 7/20/20. Description: § 205(d) Rate Filing: Accession Number: 20200629–5283. Docket Numbers: ER20–2218–000. Amendment to ISA, SA No. 5558; Comments Due: 5 p.m. ET 7/20/20. Applicants: Northfield Mountain LLC. Queue No. AE1–142 (amend) to be Docket Numbers: ER20–2211–000. Description: § 205(d) Rate Filing: effective 1/7/2020. Applicants: PJM Interconnection, Revised Market-Based Rate Tariff to be Filed Date: 6/29/20. L.L.C. effective 6/30/2020. Accession Number: 20200629–5356. Description: § 205(d) Rate Filing: Filed Date: 6/29/20. Comments Due: 5 p.m. ET 7/20/20. Amendment to ISA, SA No. 5149 Accession Number: 20200629–5311. Docket Numbers: ER20–2226–000. between PJM, Beaver Dam Energy LLC Comments Due: 5 p.m. ET 7/20/20. Applicants: Hamilton Power, LLC. and MAIT to be effective 7/16/2018. Docket Numbers: ER20–2219–000. Description: § 205(d) Rate Filing: Filed Date: 6/29/20. Applicants: New England Power Market-Based Rate Tariff Revisions to be Accession Number: 20200629–5286. Company. effective 6/30/2020. Comments Due: 5 p.m. ET 7/20/20. Description: Compliance filing: Order Filed Date: 6/29/20. Docket Numbers: ER20–2212–000. No. 864 Compliance Filng—NEP Sched Accession Number: 20200629–5358.

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Comments Due: 5 p.m. ET 7/20/20. Comments Due: 5 p.m. ET 7/20/20. and 214 of the Commission’s Docket Numbers: ER20–2227–000. Docket Numbers: ER20–2235–000. Regulations (18 CFR 385.211 and Applicants: Hunterstown Power, LLC. Applicants: AEP Texas Inc. 385.214) on or before 5:00 p.m. Eastern Description: § 205(d) Rate Filing: Description: § 205(d) Rate Filing: time on the specified comment date. Market-Based Rate Tariff Revisions to be AEPTX-Rayos Del Sol Solar (Vancourt) Protests may be considered, but effective 6/30/2020. Interconnection Agreement to be intervention is necessary to become a Filed Date: 6/29/20. effective 6/11/2020. party to the proceeding. Accession Number: 20200629–5360. Filed Date: 6/29/20. eFiling is encouraged. More detailed Comments Due: 5 p.m. ET 7/20/20. Accession Number: 20200629–5374. information relating to filing Docket Numbers: ER20–2228–000. Comments Due: 5 p.m. ET 7/20/20. requirements, interventions, protests, Applicants: Niles Power, LLC. Docket Numbers: ER20–2236–000. service, and qualifying facilities filings Description: § 205(d) Rate Filing: Applicants: Shawnee Power, LLC. can be found at: http://www.ferc.gov/ Market-Based Rate Tariff Revisions to be Description: § 205(d) Rate Filing: docs-filing/efiling/filing-req.pdf. For effective 6/30/2020. Market-Based Rate Tariff Revisions to be other information, call (866) 208–3676 Filed Date: 6/29/20. effective 6/30/2020. (toll free). For TTY, call (202) 502–8659. Accession Number: 20200629–5361. Filed Date: 6/29/20. Dated: June 29, 2020. Comments Due: 5 p.m. ET 7/20/20. Accession Number: 20200629–5375. Nathaniel J. Davis, Sr., Docket Numbers: ER20–2229–000. Comments Due: 5 p.m. ET 7/20/20. Deputy Secretary. Applicants: AEP Texas Inc. Docket Numbers: ER20–2237–000. [FR Doc. 2020–14551 Filed 7–6–20; 8:45 am] Description: § 205(d) Rate Filing: Applicants: Weatherford Wind, LLC. BILLING CODE 6717–01–P AEPTX–KC Wind SUA Cancellation to Description: Baseline eTariff Filing: be effective 8/29/2020. Weatherford Wind, LLC Application for Filed Date: 6/29/20. MBR Authority to be effective 8/29/ DEPARTMENT OF ENERGY Accession Number: 20200629–5362. 2020. Comments Due: 5 p.m. ET 7/20/20. Filed Date: 6/29/20. Federal Energy Regulatory Docket Numbers: ER20–2230–000. Accession Number: 20200629–5384. Commission Comments Due: 5 p.m. ET 7/20/20. Applicants: Orrtanna Power, LLC. [Docket No. ER20–2202–000] Description: § 205(d) Rate Filing: Docket Numbers: ER20–2238–000. Market-Based Rate Tariff Revisions to be Applicants: Alabama Power Cassadaga Wind LLC; Supplemental effective 6/30/2020. Company. Notice That Initial Market-Based Rate Filed Date: 6/29/20. Description: § 205(d) Rate Filing: Filing Includes Request for Blanket Accession Number: 20200629–5364. AMEA NITSA Amendment Filing (Add Section 204 Authorization Comments Due: 5 p.m. ET 7/20/20. New Silverhill DP & Revise Attachment This is a supplemental notice in the Docket Numbers: ER20–2231–000. A) to be effective 5/29/2020. above-referenced proceeding of Applicants: Titus Power, LLC. Filed Date: 6/29/20. Cassadaga Wind LLC’s application for Description: § 205(d) Rate Filing: Accession Number: 20200629–5392. market-based rate authority, with an Market-Based Rate Tariff Revisions to be Comments Due: 5 p.m. ET 7/20/20. accompanying rate tariff, noting that effective 6/30/2020. Take notice that the Commission such application includes a request for Filed Date: 6/29/20. received the following foreign utility blanket authorization, under 18 CFR Accession Number: 20200629–5370. company status filings: part 34, of future issuances of securities Comments Due: 5 p.m. ET 7/20/20. Docket Numbers: FC20–11–000. and assumptions of liability. Applicants: Faro Energy Ltd. Docket Numbers: ER20–2232–000. Any person desiring to intervene or to Description: Notification of Self- Applicants: Tolna Power, LLC. protest should file with the Federal Certification of Foreign Utility Company Description: § 205(d) Rate Filing: Energy Regulatory Commission, 888 Status. Market-Based Rate Tariff to be effective First Street NE, Washington, DC 20426, Filed Date: 6/25/20. 6/30/2020. in accordance with Rules 211 and 214 Accession Number: 20200625–5146. Filed Date: 6/29/20. of the Commission’s Rules of Practice Comments Due: 5 p.m. ET 7/16/20. Accession Number: 20200629–5371. and Procedure (18 CFR 385.211 and Comments Due: 5 p.m. ET 7/20/20. Take notice that the Commission 385.214). Anyone filing a motion to Docket Numbers: ER20–2233–000. received the following qualifying intervene or protest must serve a copy Applicants: Southwest Power Pool, facility filings: of that document on the Applicant. Inc. Docket Numbers: QF15–28–000; Notice is hereby given that the Description: § 205(d) Rate Filing: QF15–29–000. deadline for filing protests with regard 3197R1 Evergy Missouri West and Galt, Applicants: CF CVEC Owner One to the applicant’s request for blanket MO Interconnection Agr to be effective LLC. authorization, under 18 CFR part 34, of 8/28/2020. Description: Refund Report of CF future issuances of securities and Filed Date: 6/29/20. CVEC Owner One LLC. assumptions of liability, is July 20, Accession Number: 20200629–5372. Filed Date: 6/26/20. 2020. Comments Due: 5 p.m. ET 7/20/20. Accession Number: 20200626–5403. The Commission encourages Docket Numbers: ER20–2234–000. Comments Due: 5 p.m. ET 7/17/20. electronic submission of protests and Applicants: AEP Texas Inc. The filings are accessible in the interventions in lieu of paper, using the Description: § 205(d) Rate Filing: Commission’s eLibrary system by FERC Online links at http:// AEPTX–LCRA TSC (Asherton) Facility clicking on the links or querying the www.ferc.gov. To facilitate electronic Development Agreement to be effective docket number. service, persons with internet access 6/18/2020. Any person desiring to intervene or who will eFile a document and/or be Filed Date: 6/29/20. protest in any of the above proceedings listed as a contact for an intervenor Accession Number: 20200629–5373. must file in accordance with Rules 211 must create and validate an

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eRegistration account using the Any person desiring to intervene or to DEPARTMENT OF ENERGY eRegistration link. Select the eFiling protest this filing must file in link to log on and submit the accordance with Rules 211 and 214 of Federal Energy Regulatory intervention or protests. the Commission’s Rules of Practice and Commission Persons unable to file electronically Procedure (18 CFR 385.211, 385.214). [Docket No. ER20–2134–000] may mail similar pleadings to the Protests will be considered by the Federal Energy Regulatory Commission, Commission in determining the Cimarron Bend Wind Project III, LLC; 888 First Street NE, Washington, DC appropriate action to be taken, but will Supplemental Notice That Initial 20426. Hand delivered submissions in not serve to make protestants parties to Market-Based Rate Filing Includes docketed proceedings should be the proceeding. Any person wishing to Request for Blanket Section 204 delivered to Health and Human become a party must file a notice of Authorization Services, 12225 Wilkins Avenue, intervention or motion to intervene, as Rockville, Maryland 20852. This is a supplemental notice in the appropriate. Such notices, motions, or In addition to publishing the full text above-referenced proceeding of protests must be filed on or before the of this document in the Federal Cimarron Bend Wind Project III, LLC’s Register, the Commission provides all comment date. Anyone filing a motion application for market-based rate interested persons an opportunity to to intervene or protest must serve a copy authority, with an accompanying rate view and/or print the contents of this of that document on the Petitioner. tariff, noting that such application document via the internet through the In addition to publishing the full text includes a request for blanket Commission’s Home Page (http:// of this document in the Federal authorization, under 18 CFR part 34, of ferc.gov) using the eLibrary link. Enter Register, the Commission provides all future issuances of securities and the docket number excluding the last assumptions of liability. interested persons an opportunity to Any person desiring to intervene or to three digits in the docket number field view and/or print the contents of this protest should file with the Federal to access the document. At this time, the document via the internet through the Energy Regulatory Commission, 888 Commission has suspended access to Commission’s Home Page (http:// First Street NE, Washington, DC 20426, the Commission’s Public Reference ferc.gov) using the eLibrary link. Enter in accordance with Rules 211 and 214 Room, due to the proclamation the docket number excluding the last of the Commission’s Rules of Practice declaring a National Emergency three digits in the docket number field and Procedure (18 CFR 385.211 and concerning the Novel Coronavirus to access the document. At this time, the 385.214). Anyone filing a motion to Disease (COVID–19), issued by the Commission has suspended access to intervene or protest must serve a copy President on March 13, 2020. For the Commission’s Public Reference of that document on the Applicant. assistance, contact the Federal Energy Room, due to the proclamation Notice is hereby given that the Regulatory Commission at declaring a National Emergency deadline for filing protests with regard [email protected] or call concerning the Novel Coronavirus to the applicant’s request for blanket toll-free, (886) 208–3676 or TYY, (202) authorization, under 18 CFR part 34, of 502–8659. Disease (COVID–19), issued by the President on March 13, 2020. For future issuances of securities and Dated: June 29, 2020. assistance, contact the Federal Energy assumptions of liability, is July 20, Nathaniel J. Davis, Sr., Regulatory Commission at 2020. Deputy Secretary. [email protected] or call The Commission encourages electronic submission of protests and [FR Doc. 2020–14554 Filed 7–6–20; 8:45 am] toll-free, (886) 208–3676 or TYY, (202) interventions in lieu of paper, using the BILLING CODE 6717–01–P 502–8659. FERC Online links at http:// The Commission strongly encourages www.ferc.gov. To facilitate electronic DEPARTMENT OF ENERGY electronic filings of comments, protests service, persons with internet access and interventions in lieu of paper using who will eFile a document and/or be Federal Energy Regulatory the eFiling link at http://www.ferc.gov. listed as a contact for an intervenor Commission Persons unable to file electronically may must create and validate an mail similar pleadings to the Federal eRegistration account using the [Docket Nos. EL20–55–000, QF15–28–001, QF15–29–001] Energy Regulatory Commission, 888 eRegistration link. Select the eFiling First Street NE, Washington, DC 20426. link to log on and submit the CF CVEC Owner One LLC; Notice of Hand delivered submissions in intervention or protests. Petition for Declaratory Order docketed proceedings should be Persons unable to file electronically delivered to Health and Human may mail similar pleadings to the Take notice that on June 26, 2020, Services, 12225 Wilkins Avenue, Federal Energy Regulatory Commission, pursuant to Rule 207 of the Federal Rockville, Maryland 20852. 888 First Street NE, Washington, DC Energy Regulatory Commission’s 20426. Hand delivered submissions in (Commission) Rules of Practice and Comment Date: 5:00 p.m. Eastern time docketed proceedings should be Procedure, 18 CFR 385.207 (2019), CF on July 27, 2020. delivered to Health and Human CVEC Owner One LLC on behalf of CF Dated: June 30, 2020. Services, 12225 Wilkins Avenue, Katama LLC and CF Nunnepog LLC Kimberly D. Bose, Rockville, Maryland 20852. (Petitioner) hereby submits a petition for In addition to publishing the full text declaratory order (Petition) requesting Secretary. of this document in the Federal that the Commission issue a declaratory [FR Doc. 2020–14526 Filed 7–6–20; 8:45 am] Register, the Commission provides all order granting limited waiver, or to the BILLING CODE 6717–01–P interested persons an opportunity to extent necessary remedial relief, of the view and/or print the contents of this filing requirements applicable to small document via the internet through the power production facilities, as more Commission’s Home Page (http:// fully explained in the petition. ferc.gov) using the eLibrary link. Enter

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the docket number excluding the last eRegistration link. Select the eFiling Filed Date: 6/30/20. three digits in the docket number field link to log on and submit the Accession Number: 20200630–5272. to access the document. At this time, the intervention or protests. Comments Due: 5 p.m. ET 7/21/20. Commission has suspended access to Persons unable to file electronically Take notice that the Commission the Commission’s Public Reference may mail similar pleadings to the received the following electric rate Room, due to the proclamation Federal Energy Regulatory Commission, filings: declaring a National Emergency 888 First Street NE, Washington, DC Docket Numbers: ER10–1556–009. concerning the Novel Coronavirus 20426. Hand delivered submissions in Applicants: Longview Power, LLC. Disease (COVID–19), issued by the docketed proceedings should be Description: Updated Market Power President on March 13, 2020. For delivered to Health and Human Analysis for the Northeast Region of assistance, contact the Federal Energy Services, 12225 Wilkins Avenue, Longview Power, LLC. Regulatory Commission at Rockville, Maryland 20852. Filed Date: 6/29/20. In addition to publishing the full text [email protected] or call Accession Number: 20200629–5515. of this document in the Federal toll-free, (886) 208–3676 or TYY, (202) Comments Due: 5 p.m. ET 8/28/20. 502–8659. Register, the Commission provides all interested persons an opportunity to Docket Numbers: ER10–1630–008; Nathaniel J. Davis, Sr., view and/or print the contents of this ER10–1586–008. Deputy Secretary. document via the internet through the Applicants: Big Sandy Peaker Plant, [FR Doc. 2020–14553 Filed 7–6–20; 8:45 am] Commission’s Home Page (http:// LLC, Wolf Hills Energy, LLC. BILLING CODE 6717–01–P ferc.gov) using the eLibrary link. Enter Description: Triennial Market Power the docket number excluding the last Update—Northeast Region of the three digits in the docket number field Avenue MBR Sellers. DEPARTMENT OF ENERGY to access the document. At this time, the Filed Date: 6/29/20. Commission has suspended access to Accession Number: 20200629–5532. Federal Energy Regulatory the Commission’s Public Reference Comments Due: 5 p.m. ET 8/28/20. Commission Room, due to the proclamation Docket Numbers: ER10–2131–023. [Docket No. ER20–2249–000] declaring a National Emergency Applicants: Grand Ridge Energy LLC. concerning the Novel Coronavirus Description: Triennial Report Grand Priogen Power LLC; Supplemental Disease (COVID–19), issued by the Ridge Energy LLC. Notice That Initial Market-Based Rate President on March 13, 2020. For Filed Date: 6/30/20. Filing Includes Request for Blanket assistance, contact the Federal Energy Accession Number: 20200630–5406. Section 204 Authorization Regulatory Commission at Comments Due: 5 p.m. ET 8/29/20. Docket Numbers: ER10–2137–023; This is a supplemental notice in the [email protected] or call ER14–2799–015. above-referenced Priogen Power LLC’s toll-free, (886) 208–3676 or TYY, (202) Applicants: Beech Ridge Energy LLC, application for market-based rate 502–8659. Beech Ridge Energy Storage LLC. authority, with an accompanying rate Dated: June 30, 2020. Description: Triennial Report of Beech tariff, noting that such application Nathaniel J. Davis, Sr., Ridge Energy LLC, et. al. includes a request for blanket Deputy Secretary. Filed Date: 6/30/20. authorization, under 18 CFR part 34, of [FR Doc. 2020–14546 Filed 7–6–20; 8:45 am] Accession Number: 20200630–5394. future issuances of securities and BILLING CODE 6717–01–P Comments Due: 5 p.m. ET 8/29/20. assumptions of liability. Any person desiring to intervene or to Docket Numbers: ER10–2140–023. protest should file with the Federal DEPARTMENT OF ENERGY Applicants: Grand Ridge Energy IV Energy Regulatory Commission, 888 LLC. First Street NE, Washington, DC 20426, Federal Energy Regulatory Description: Triennial Report Grand in accordance with Rules 211 and 214 Commission Ridge Energy IV LLC. of the Commission’s Rules of Practice Filed Date: 6/30/20. and Procedure (18 CFR 385.211 and Combined Notice of Filings #2 Accession Number: 20200630–5402. Comments Due: 5 p.m. ET 8/29/20. 385.214). Anyone filing a motion to Take notice that the Commission intervene or protest must serve a copy received the following exempt Docket Numbers: ER10–2141–023; of that document on the Applicant. wholesale generator filings: ER14–2187–017. Notice is hereby given that the Applicants: Grand Ridge Energy V Docket Numbers: EG20–200–000. LLC, Grand Ridge Energy Storage LLC. deadline for filing protests with regard Applicants: Duke Energy Corporation, Description: Triennial Report of to the applicant’s request for blanket Maryneal Windpower, LLC. authorization, under 18 CFR part 34, of Description: Notice of Self- Grand Ridge Energy V LLC, et al. future issuances of securities and Certification of Exempt Wholesale Filed Date: 6/30/20. assumptions of liability, is July 20, Generator Status of Maryneal Accession Number: 20200630–5404. 2020. Windpower, LLC. Comments Due: 5 p.m. ET 8/29/20. The Commission encourages Filed Date: 6/29/20. Docket Numbers: ER10–2265–017; electronic submission of protests and Accession Number: 20200629–5450. ER10–1581–023; ER10–2355–010; interventions in lieu of paper, using the Comments Due: 5 p.m. ET 7/20/20. ER10–2783–015; ER10–2784–015; FERC Online links at http:// Docket Numbers: EG20–201–000. ER10–2798–015; ER10–2799–015; www.ferc.gov. To facilitate electronic Applicants: HO Clarke Generating, ER10–2801–015; ER10–2878–015; service, persons with internet access LLC. ER10–2879–015; ER10–2947–015; who will eFile a document and/or be Description: Notice of Self- ER10–2969–015; ER10–3223–009; listed as a contact for an intervenor Certification of Exempt Wholesale ER11–2062–025; ER11–2175–003; must create and validate an Generator Status of HO Clarke ER11–2176–002; ER11–3188–003; eRegistration account using the Generating, LLC. ER11–3418–005; ER11–4307–026;

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ER11–4308–026; ER12–224–004; ER12– LLC, EC&R O&M, LLC, Stony Creek Comments Due: 5 p.m. ET 8/28/20. 225–004; ER12–2301–003; ER12–261– Wind Farm, LLC, Wildcat Wind Farm I, Docket Numbers: ER16–1720–012. 025; ER16–10–003; ER17–764–003; LLC. Applicants: Invenergy Energy ER17–765–003; ER17–767–003. Description: Updated Market Power Management LLC. Applicants: NRG Power Marketing Filing for the Northeast Region of Description: Triennial Report of LLC, Arthur Kill Power LLC, Astoria Munnsville Wind Farm, LLC, et al. Invenergy Energy Management LLC. Gas Turbine Power LLC, Connecticut Jet Filed Date: 6/29/20. Filed Date: 6/30/20. Power LLC, Devon Power LLC, Dunkirk Accession Number: 20200629–5484. Accession Number: 20200630–5411. Power LLC, Energy Plus Holdings LLC, Comments Due: 5 p.m. ET 8/28/20. Comments Due: 5 p.m. ET 8/29/20. Green Mountain Energy Company, Docket Numbers: ER10–3079–017; Docket Numbers: ER17–1609–003; Independence Energy Group LLC, ER10–3078–005; ER19–2564–001. ER19–1215–002. Indian River Power LLC, Long Beach Applicants: Tyr Energy, LLC, Applicants: Carroll County Energy Peakers LLC, Middletown Power LLC, Commonwealth Chesapeake Company, LLC, Cricket Valley Energy Center, LLC. Midwest Generation, LLC, Montville LLC, Hickory Run Energy, LLC. Description: Updated Market Power Power LLC, NRG Chalk Point CT LLC, Description: Updated Market Power Analysis of the Indicated MBR Sellers. Oswego Harbor Power LLC, Reliant Analysis for the Northeast Region of Tyr Filed Date: 6/29/20. Energy Northeast LLC, SGE Energy Energy, LLC. Accession Number: 20200629–5514. Sourcing, LLC, Stream Energy Filed Date: 6/29/20. Comments Due: 5 p.m. ET 8/28/20. Columbia, LLC, Stream Energy Accession Number: 20200629–5510. Delaware, LLC, Stream Energy Illinois, Comments Due: 5 p.m. ET 8/28/20. Docket Numbers: ER18–491–004; ER18–492–004. LLC, Stream Energy Maryland, LLC, Docket Numbers: ER11–1850–008; Applicants: Hardin Wind Energy LLC, Stream Energy New Jersey, LLC, Stream ER11–1846–008; ER11–1847–008; Hardin Wind Energy Holdings LLC. Energy New York, LLC, Stream Energy ER11–2598–011; ER13–1192–005. Description: Triennial Report of Pennsylvania, LLC, Stream Ohio Gas & Applicants: Direct Energy Business, Hardin Wind Energy LLC, et al. Electric, LLC, Vienna Power LLC, LLC, Direct Energy Business Marketing, Filed Date: 6/30/20. XOOM Energy, LLC. LLC, Direct Energy Marketing Inc., Accession Number: 20200630–5409. Description: Updated Market Power Direct Energy Services, LLC, Gateway Comments Due: 5 p.m. ET 8/29/20. Analysis of the NRG Northeast MBR Energy Services Corporation. Sellers. Description: Northeast Region Docket Numbers: ER18–1106–002. Filed Date: 6/29/20. Triennial Report of the Direct Energy Applicants: Kestrel Acquisition, LLC. Accession Number: 20200629–5491. Sellers. Description: Updated Market Power Comments Due: 5 p.m. ET 8/28/20. Filed Date: 6/29/20. Analysis for Northeast Region of Kestrel Docket Numbers: ER10–2566–011; Accession Number: 20200629–5520. Acquisition, LLC. ER10–1333–015; ER13–2322–007; Comments Due: 5 p.m. ET 8/28/20. Filed Date: 6/29/20. ER13–2387–008; ER15–190–014; ER18– Docket Numbers: ER12–1383–003; Accession Number: 20200629–5519. 1343–007; ER19–1819–002; ER19–1820– ER14–2798–016; ER15–2453–005 ER17– Comments Due: 5 p.m. ET 8/28/20. 002; ER19–1821–002. 252–004; ER18–494–005. Docket Numbers: ER19–2269–002; Applicants: Duke Energy Carolinas, Applicants: Passadumkeag Windpark, ER10–1852–039; ER10–1951–021; LLC, Duke Energy Commercial LLC, Diamond State Generation ER10–2641–036; ER11–4462–042; Enterprises, Inc., Duke Energy Florida, Partners, LLC, 2016 ESA Project ER16–1277–009; ER16–1293–008; LLC, Duke Energy Progress, LLC, Duke Company, LLC, Beech Ridge Energy II ER16–1354–008; ER16–1913–006; Energy Renewable Services, LLC, Broad Holdings LLC, Beech Ridge Energy II ER17–838–017; ER18–1952–008; ER19– River Solar, LLC, Stony Knoll Solar, LLC. 2226–002; ER19–2269–002; ER19–774– LLC, Speedway Solar NC, LLC, Carolina Description: Triennial Market Power 005. Solar Power, LLC. Update for the Northeast Region of the Applicants: Dougherty County Solar, Description: Triennial Updated Southern NE MBR Sellers. LLC, Florida Power & Light Company, Market Power Analysis for the Filed Date: 6/30/20. Gulf Power Company, Live Oak Solar, Southeast Region of Duke Southeast Accession Number: 20200630–5390. LLC, NextEra Energy Marketing, LLC, MBR Sellers. Comments Due: 5 p.m. ET 8/29/20. NextEra Energy Services Massachusetts, Filed Date: 6/29/20. Docket Numbers: ER12–1436–015; LLC, NEPM II, LLC, Oleander Power Accession Number: 20200629–5547. ER18–280–005; ER18–533–002; ER18– Project, Limited Partnership, Quitman Comments Due: 5 p.m. ET 8/28/20. 534–002; ER18–535–002; ER18–536– Solar, LLC, River Bend Solar, LLC, Docket Numbers: ER10–2614–006. 002; ER18–537–002; ER18–538–003; Stanton Clean Energy, LLC, White Oak Applicants: ENMAX Energy ER20–1641–001. Solar, LLC, White Pine Solar, LLC. Marketing, Inc. Applicants: Eagle Point Power Description: Southeast Region Description: Triennial Market Power Generation LLC, Lee County Generating Triennial Market Power Update, et al. of Analysis of ENMAX Energy Marketing, Station, LLC, Monument Generating the NextEra Companies. Inc. Station, LLC, O.H. Hutchings CT, LLC, Filed Date: 6/29/20. Filed Date: 6/29/20. Sidney, LLC, Southern Illinois Accession Number: 20200629–5545. Accession Number: 20200629–5518. Generation Company, LLC, Tait Electric Comments Due: 5 p.m. ET 8/28/20. Comments Due: 5 p.m. ET 8/28/20. Generating Station, LLC, Yankee Street, Docket Numbers: ER19–2507–002; Docket Numbers: ER10–2834–007; LLC, Montpelier Generating Station, ER12–1260–015; ER13–1793–014. ER10–2821–007; ER12–1329–007; LLC. Applicants: Convergent Energy and ER17–1438–002; ER17–2056–001; Description: Triennial Market-Based Power LP, Hazle Spindle, LLC, ER20–173–001. Rate Update Filing for the Northeast Stephentown Spindle, LLC. Applicants: Munnsville Wind Farm, Region of the Rockland Sellers. Description: Updated Market Power LLC, Radford’s Run Wind Farm, LLC, Filed Date: 6/29/20. Analysis: Northeast Region of the RWE Renewables Energy Marketing, Accession Number: 20200629–5522. Convergent MBR Sellers.

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Filed Date: 6/29/20. Accession Number: 20200630–5000. Comments Due: 5 p.m. ET 7/21/20. Accession Number: 20200629–5544. Comments Due: 5 p.m. ET 7/21/20. Docket Numbers: ER20–2248–000. Comments Due: 5 p.m. ET 8/28/20. Docket Numbers: ER20–2241–000. Applicants: SWG Colorado, LLC. Docket Numbers: ER20–838–003. Applicants: Indiana Michigan Power Description: Tariff Cancellation: Applicants: Duke Energy Ohio, Inc. Company, AEP Indiana Michigan Cancellation of Rate Schedules Tariff to Description: Tariff Amendment: DEO– Transmission Company, Inc., American be effective 7/1/2020. AEP Amendment to Amend IA PJM SA Electric Power Service Corporation, PJM Filed Date: 6/30/20. No. 1491 Request for Extension to be Interconnection, L.L.C. Accession Number: 20200630–5076. effective 12/21/2019. Description: § 205(d) Rate Filing: AEP Comments Due: 5 p.m. ET 7/21/20. Filed Date: 6/30/20. submits ILDSAs, SA No. 1452, 1453, Docket Numbers: ER20–2249–000. Accession Number: 20200630–5106. 1544 and 1456, and BAA SA No. 5677 Applicants: Priogen Power LLC. Comments Due: 5 p.m. ET 7/21/20. to be effective 6/1/2020. Description: Baseline eTariff Filing: Docket Numbers: ER20–1385–001; Filed Date: 6/30/20. Baseline new to be effective 8/31/2020. ER10–2638–010; ER10–3194–007; Accession Number: 20200630–5002. Filed Date: 6/30/20. ER10–3195–007; ER11–4535–002; Comments Due: 5 p.m. ET 7/21/20. Accession Number: 20200630–5078. ER16–2271–003; ER16–2549–002; Docket Numbers: ER20–2242–000. Comments Due: 5 p.m. ET 7/21/20. ER16–581–004; ER16–582–004; ER16– Applicants: Southwest Power Pool, Docket Numbers: ER20–2250–000. 806–003; ER17–1370–003; ER19–997– Inc. Applicants: Spruance Operating 001. Description: § 205(d) Rate Filing: Services, LLC. Applicants: Bluestone Farm Solar, 1790R1 Occidental Chemical Description: § 205(d) Rate Filing: LLC, ENGIE Energy Marketing NA, Inc., Corporation LGIA to be effective 8/29/ Request for Category 1 Seller Status in ENGIE Portfolio Management, LLC, 2020. the NE Region and Revised MBR Tariff ENGIE Resources LLC, ENGIE Retail, Filed Date: 6/30/20. to be effective 7/1/2020. LLC, MATEP LLC, MATEP Limited Accession Number: 20200630–5050. Filed Date: 6/30/20. Partnership, Nassau Energy LLC, Comments Due: 5 p.m. ET 7/21/20. Accession Number: 20200630–5082. Pinetree Power LLC, Pinetree Power- Docket Numbers: ER20–2243–000. Comments Due: 5 p.m. ET 7/21/20. Tamworth, LLC, Waterbury Generation Applicants: Southwest Power Pool, Docket Numbers: ER20–2251–000. LLC, Plymouth Rock Energy, LLC. Inc. Applicants: Southwest Power Pool, Description: Triennial Compliance Description: § 205(d) Rate Filing: 3631 Inc. Filing of the ENGIE Northeast MBR Milligan 1 Wind LLC Sponsored Description: § 205(d) Rate Filing: Sellers. Upgrade Agr to be effective 6/26/2020. Revisions to Extend Tariff Filed Date: 6/29/20. Filed Date: 6/30/20. Administration between SPP and SPA Accession Number: 20200629–5549. Accession Number: 20200630–5052. Comments Due: 5 p.m. ET 8/28/20. through 12/31/2021 to be effective 7/1/ Comments Due: 5 p.m. ET 7/21/20. 2020. Docket Numbers: ER20–1436–002; Docket Numbers: ER20–2244–000. Filed Date: 6/30/20. ER20–1437–002; ER20–1438–002; Applicants: SWG Colorado, LLC. Accession Number: 20200630–5089. ER20–879–002. Description: Tariff Cancellation: Comments Due: 5 p.m. ET 7/21/20. Applicants: Energy Harbor LLC, Cancellation of MBR Tariff to be Energy Harbor Generation LLC, Energy Docket Numbers: ER20–2252–000. effective 7/1/2020. Harbor Nuclear Generation LLC, Applicants: Southwest Power Pool, Filed Date: 6/30/20. Pleasants LLC. Inc. Accession Number: 20200630–5057. Description: Triennial Market Power Description: § 205(d) Rate Filing: Comments Due: 5 p.m. ET 7/21/20. Update Analysis of the Energy Harbor 3330R2 City of Nixa, Missouri to be Public Utilities. Docket Numbers: ER20–2245–000. effective 6/1/2020. Filed Date: 6/29/20. Applicants: CPV Fairview, LLC. Filed Date: 6/30/20. Accession Number: 20200629–5500. Description: § 205(d) Rate Filing: Accession Number: 20200630–5091. Comments Due: 5 p.m. ET 8/28/20. Revised Market-Based Rate Tariff Filing Comments Due: 5 p.m. ET 7/21/20. Docket Numbers: ER20–1436–003; to be effective 8/30/2020. Docket Numbers: ER20–2253–000. ER20–1437–003; ER20–1438–003; ER20– Filed Date: 6/30/20. Applicants: New York State Electric & 879–003. Accession Number: 20200630–5060. Gas Corporation. Applicants: Energy Harbor LLC, Comments Due: 5 p.m. ET 7/21/20. Description: § 205(d) Rate Filing: Rate Energy Harbor Generation LLC, Energy Docket Numbers: ER20–2246–000. Schedule FERC No. 87 Supplement to Harbor Nuclear Generation LLC, Applicants: Longview Power, LLC. be effective 9/1/2020. Pleasants LLC. Description: § 205(d) Rate Filing: Filed Date: 6/30/20. Description: Notification of Change in Market-Based Rate Tariff Revisions to be Accession Number: 20200630–5116. Status of the Energy Harbor Public effective 7/1/2020. Comments Due: 5 p.m. ET 7/21/20. Utilities. Filed Date: 6/30/20. Docket Numbers: ER20–2254–000. Filed Date: 6/29/20. Accession Number: 20200630–5062. Applicants: New York State Electric & Accession Number: 20200629–5502. Comments Due: 5 p.m. ET 7/21/20. Gas Corporation. Comments Due: 5 p.m. ET 7/20/20. Docket Numbers: ER20–2247–000. Description: § 205(d) Rate Filing: Docket Numbers: ER20–2240–000. Applicants: Southwest Power Pool, NYSEG–NYPA Attachment C—O&M Applicants: NorthWestern Inc. Annual Update to be effective 9/1/2020. Corporation. Description: § 205(d) Rate Filing: Filed Date: 6/30/20. Description: § 205(d) Rate Filing: SA 2632R2 Sunflower/Evergy KS Central/ Accession Number: 20200630–5121. 893—Firm PTP Transmission Service Evergy KS South Inter Agr to be Comments Due: 5 p.m. ET 7/21/20. Agreement with Energy Keepers Inc. to effective 8/29/2020. Docket Numbers: ER20–2255–000. be effective 9/1/2020. Filed Date: 6/30/20. Applicants: Midcontinent Filed Date: 6/30/20. Accession Number: 20200630–5064. Independent System Operator, Inc.

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Description: § 205(d) Rate Filing: Description: § 205(d) Rate Filing: Description: Petition for Limited 2020–06–30_SA 3509 Certificate of Request for Category 1 Seller Status for Waiver of Alliance Development Group, Concurrence MidAmerican-Evergy IA to the NE Region and Revised MBR Tariff LLC. be effective 8/28/2020. to be effective 7/1/2020. Filed Date: 6/29/20. Filed Date: 6/30/20. Filed Date: 6/30/20. Accession Number: 20200629–5543. Accession Number: 20200630–5122. Accession Number: 20200630–5178. Comments Due: 5 p.m. ET 7/20/20 Comments Due: 5 p.m. ET 7/21/20. Comments Due: 5 p.m. ET 7/21/20. Docket Numbers: ER20–2270–000. Docket Numbers: ER20–2256–000. Docket Numbers: ER20–2263–000. Applicants: Black Hills Power, Inc. Applicants: Copenhagen Wind Farm, Applicants: PE Hydro Generation, Description: § 205(d) Rate Filing: LLC. LLC. Second Amended GDEMA with Black Description: Market-Based Triennial Description: § 205(d) Rate Filing: Hills Wyoming to be effective 8/1/2020. Review Filing: Triennial Market Power Request for Category 1 Seller Status for Filed Date: 6/30/20. Update of Copenhagen Wind Farm to be the NE Region and Revised MBR Tariff Accession Number: 20200630–5353. effective 8/30/2020. to be effective 7/1/2020. Comments Due: 5 p.m. ET 7/21/20. Filed Date: 6/30/20. Filed Date: 6/30/20. Docket Numbers: ER20–2271–000. Accession Number: 20200630–5134. Accession Number: 20200630–5194. Applicants: Caithness Long Island, Comments Due: 5 p.m. ET 8/29/20. Comments Due: 5 p.m. ET 7/21/20. LLC. Docket Numbers: ER20–2257–000. Docket Numbers: ER20–2264–000. Description: Market-Based Triennial Applicants: Vermont Transco LLC. Applicants: York Haven Power Review Filing: Updated Market Power Description: Compliance filing: Company, LLC. Analysis for the Northeast Region and Compliance 2020 Exibit A to be Description: § 205(d) Rate Filing: Revised MBR Tariff to be effective 7/1/ effective 7/1/2020. Request for Category 1 Seller Status for 2020. Filed Date: 6/30/20. the NE Region and Revised MBR Tariff Filed Date: 6/30/20. Accession Number: 20200630–5141. to be effective 7/1/2020. Accession Number: 20200630–5354. Comments Due: 5 p.m. ET 7/21/20. Filed Date: 6/30/20. Comments Due: 5 p.m. ET 8/29/20. Docket Numbers: ER20–2258–000. Accession Number: 20200630–5211. Docket Numbers: ER20–2272–000. Applicants: Northern Indiana Public Comments Due: 5 p.m. ET 7/21/20. Applicants: Black Hills Power, Inc. Service Company. Docket Numbers: ER20–2265–000. Description: § 205(d) Rate Filing: Description: § 205(d) Rate Filing: Applicants: Pacific Gas and Electric Second Amended GDEMA with Gillette, Filing of an Amended CIAC Agreement Company. WY to be effective 8/1/2020. to be effective 7/1/2020. Description: § 205(d) Rate Filing: TO Filed Date: 6/30/20. Filed Date: 6/30/20. Tariff Revision to Formula Capital Accession Number: 20200630–5360. Accession Number: 20200630–5160. Structure to be effective 8/31/2020. Comments Due: 5 p.m. ET 7/21/20. Comments Due: 5 p.m. ET 7/21/20. Filed Date: 6/30/20. Docket Numbers: ER20–2273–000. Docket Numbers: ER20–2259–000. Accession Number: 20200630–5286. Applicants: Southwest Power Pool, Applicants: New York Transco, LLC, Comments Due: 5 p.m. ET 7/21/20. Inc. New York Independent System Docket Numbers: ER20–2266–000. Description: § 205(d) Rate Filing: 3705 Operator, Inc. Applicants: Southwest Power Pool, Public Service Co of OK & Evergy Description: Compliance filing: NY Inc. Kansas South Inter Agr to be effective 8/ Transco compliance re: Order No. 864 ? Description: § 205(d) Rate Filing: 29/2020. Accumulated Deferred Income Tax to be 607R38 Evergy Kansas Central, Inc. Filed Date: 6/30/20. effective 1/26/2020. NITSA NOA to be effective 6/1/2020. Accession Number: 20200630–5364. Filed Date: 6/30/20. Accession Number: 20200630–5173. Filed Date: 6/30/20. Comments Due: 5 p.m. ET 7/21/20. Comments Due: 5 p.m. ET 7/21/20. Accession Number: 20200630–5299. Docket Numbers: ER20–2274–000. Comments Due: 5 p.m. ET 7/21/20. Docket Numbers: ER20–2260–000. Applicants: Black Hills Power, Inc. Applicants: All Dams Generation, Docket Numbers: ER20–2267–000. Description: § 205(d) Rate Filing: LLC. Applicants: Duke Energy Carolinas, Third Amended GDEMA with Cheyenne Description: § 205(d) Rate Filing: LLC. Light, Fuel and Power Company to be Request for Cat. 1 Seller Status for the Description: § 205(d) Rate Filing: effective 8/1/2020. NE Region and Revised MBR Tariff to be DEC–NCMPA1 (SA–212) Revised to be Filed Date: 6/30/20. effective 7/1/2020. effective 6/1/2020. Accession Number: 20200630–5366. Filed Date: 6/30/20. Filed Date: 6/30/20. Comments Due: 5 p.m. ET 7/21/20. Accession Number: 20200630–5175. Accession Number: 20200630–5320. Docket Numbers: ER20–2275–000. Comments Due: 5 p.m. ET 7/21/20. Comments Due: 5 p.m. ET 7/21/20. Applicants: Black Hills Power, Inc. Docket Numbers: ER20–2261–000. Docket Numbers: ER20–2268–000. Description: § 205(d) Rate Filing: Applicants: Black River Applicants: Alabama Power Second Amended GDEMA with Black Hydroelectric, LLC. Company. Hills Colorado to be effective 8/1/2020. Description: Compliance filing: Description: § 205(d) Rate Filing: Filed Date: 6/30/20. Request for Cat. 1 Seller Status for the Cooperative Energy NITSA Amendment Accession Number: 20200630–5369. NE Region and Revised MBR Tariff to be Filing (Remove Oak Grove DP) to be Comments Due: 5 p.m. ET 7/21/20. effective 7/1/2020. effective 6/1/2020. Docket Numbers: ER20–2276–000. Filed Date: 6/30/20. Filed Date: 6/30/20. Applicants: Moxie Freedom LLC. Accession Number: 20200630–5177. Accession Number: 20200630–5322. Description: Market-Based Triennial Comments Due: 5 p.m. ET 7/21/20. Comments Due: 5 p.m. ET 7/21/20. Review Filing: Updated Market Power Docket Numbers: ER20–2262–000. Docket Numbers: ER20–2269–000. Analysis for the Northeast Region and Applicants: Lake Lynn Generation, Applicants: Alliance Development Revised MBR Tariff to be effective 7/1/ LLC. Group, LLC. 2020.

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Filed Date: 6/30/20. DEPARTMENT OF ENERGY with submission guidelines at: Accession Number: 20200630–5371. www.reginfo.gov/public/do/PRAMain; Federal Energy Regulatory using the search function under the Comments Due: 5 p.m. ET 8/29/20. Commission Currently Under Review field select Federal Energy Regulatory Commission; Docket Numbers: ER20–2277–000. [Docket No. RD20–3–000] click submit and select comment to the Applicants: New England Power Pool right of the subject collection. FERC Participants Committee. Commission Information Collection Activities FERC–725N Comment submissions must be formatted and filed Description: § 205(d) Rate Filing: July Request; Extension in accordance with submission 2020 Membership Filing to be effective guidelines at: http://www.ferc.gov/help/ 7/1/2020. AGENCY: Federal Energy Regulatory submission-guide.asp. For user Filed Date: 6/30/20. Commission. assistance, contact FERC Online ACTION: Notice of information collection Support by email at ferconlinesupport@ Accession Number: 20200630–5373. and request for comments. ferc.gov, or by phone at: (866) 208–3676 Comments Due: 5 p.m. ET 7/21/20. (toll-free). SUMMARY: In compliance with the Docket: Users interested in receiving Docket Numbers: ER20–2278–000. requirements of the Paperwork automatic notification of activity in this Applicants: Southwest Power Pool, Reduction Act of 1995, the Federal docket or in viewing/downloading Inc. Energy Regulatory Commission comments and issuances in this docket Description: § 205(d) Rate Filing: (Commission or FERC) is soliciting may do so at http://www.ferc.gov/docs- 3024R1 Evergy Missouri West & public comment on the filing/docs-filing.asp. Transource Missouri Inter Agr to be proposedinformation collection FERC– FOR FURTHER INFORMATION CONTACT: effective 8/29/2020. 725N (Mandatory Reliability TPL Ellen Brown may be reached by email Standards: TPL–007–4, (Transmission at [email protected], telephone Filed Date: 6/30/20. System Planned Performance for at (202) 502–8663. Accession Number: 20200630–5382. Geomagnetic Disturbance Events)) and SUPPLEMENTARY INFORMATION: Title: Comments Due: 5 p.m. ET 7/21/20. submitting the information collection to FERC–725N, Mandatory Reliability the Office of Management and Budget Standards TPL–007–4, Transmission Docket Numbers: ER20–2279–000. (OMB) for review. Any interested System Planned Performance for Applicants: Black Hills Power, Inc. person may file comments directly with Geomagnetic Disturbance Events. OMB and should address a copy of Description: § 205(d) Rate Filing: OMB Control No.: 1902–0264. those comments to the Commission as Type of Request: Revisions to the Second Amended GDEMA with explained below. information collection, as discussed in Montana-Dakota Utilities Co. to be DATES: Docket No. RD20–3–000. effective 8/1/2020. Comments on the collection of information are due August 6, 2020. Abstract: The proposed Reliability Filed Date: 6/30/20. Standard TPL–007–4 requires owners ADDRESSES: Comments filed with OMB, and operators of the Bulk-Power System Accession Number: 20200630–5391. identified by OMB Control No. 1902– to conduct initial and on-going 0264. Send written comments on FERC– Comments Due: 5 p.m. ET 7/21/20. vulnerability assessments of the 725N to OMB thru www.reginfo.gov/ potential impact of defined geomagnetic The filings are accessible in the public/do/PRAMain. Attention Federal disturbance events on Bulk- Power Commission’s eLibrary system by Energy Regulatory Commission Desk System equipment and the Bulk-Power clicking on the links or querying the Officer. Please identify the OMB control System as a whole. Specifically, the docket number. Number (1902–0264) in the submect Reliability Standard requires entities to line of your comments should be sent Any person desiring to intervene or develop corrective action plans for within 30 days of publication of this protest in any of the above proceedings vulnerabilities identified through notice to www.reginfo.gov/public/do/ must file in accordance with Rules 211 supplemental geomagnetic disturbance PRAMain. Using the search function and 214 of the Commission’s vulnerability assessments and requires under the Currently Under Review field Regulations (18 CFR 385.211 and entities to seek approval from the select comment to the right of the 385.214) on or before 5:00 p.m. Eastern Electric Reliability Organization of any subject collection. A copy of the time on the specified comment date. extensions of time for the completion of comments should also be sent to the Protests may be considered, but corrective action plan items. intervention is necessary to become a Commission, in Docket No. RD20–3– On August 8, 2005, Congress enacted 000) by either of the following methods: party to the proceeding. into law the Electricity Modernization • eFiling at Commission’s Website: eFiling is encouraged. More detailed Act of 2005, which is Title XII, Subtitle http://www.ferc.gov/docs-filing/ A, of the Energy Policy Act of 2005 information relating to filing efiling.asp. (EPAct 2005).1 EPAct 2005 added a new requirements, interventions, protests, • Mail/Express Services: Persons section 215 to the FPA, which required service, and qualifying facilities filings unable to file electronically may mail a Commission-certified Electric can be found at: http://www.ferc.gov/ similar pleadings to the Federal Energy Reliability Organization (ERO) to docs-filing/efiling/filing-req.pdf. For Regulatory Commission, 888 First Street develop mandatory and enforceable other information, call (866) 208–3676 NE, Washington, DC 20426. Hand Reliability Standards, which are subject (toll free). For TTY, call (202) 502–8659. delivered submissions in docketed to Commission review and approval. proceedings should be delivered to Dated: June 30, 2020. Once approved, the Reliability Health and Human Services, 12225 Standards may be enforced by the ERO Nathaniel J. Davis, Sr., Wilkins Avenue, Rockville, Maryland Deputy Secretary. 20852. 1 Energy Policy Act of 2005, Public Law 109–58, [FR Doc. 2020–14552 Filed 7–6–20; 8:45 am] Instructions: OMB submissions must Title XII, Subtitle A, 119 Stat. 594, 941 (codified at BILLING CODE 6717–01–P be formatted and filed in accordance 16 U.S.C. 824o).

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subject to Commission oversight, or the Standard TPL–007–4 (Transmission Type of Respondents: Generator Commission can independently enforce System Planned Performance for Owner, Planning Coordinator, Reliability Standards.2 Geomagnetic Disturbance Events). Distribution Provider and Transmission On February 3, 2006, the Commission NERC’s filed petition was noticed on Owners. issued Order No. 672, implementing February 11, 2020, with interventions, Estimate of Annual Burden: 5 Our section 215 of the FPA.3 Pursuant to comments and protests due on or before estimates are based on the NERC Order No. 672, the Commission certified March 9, 2020. No interventions or Compliance Registry Summary of one organization, North American comments were received. Entities as of January 31, 2020. Electric Reliability Corporation (NERC), The DLO was issued on March 19, as the ERO.4 The Reliability Standards 2020. The standard goes in effect at The individual burden estimates developed by the ERO and approved by NERC on October 1, 2020. include the time needed to gather data, the Commission apply to users, owners On April 16, 2020, the Commission run studies, and analyze study results. and operators of the Bulk-Power System published a Notice in the Federal These are consistent with estimates for as set forth in each Reliability Standard. Register in Docket No. RD20–3–000 similar tasks in other Commission- On February 7, 2020, the North requesting public comments. The approved standards. Estimates for the American Electric Reliability Commission received no public additional average annual burden and Corporation filed a petition seeking comment(s) which is addressed here cost 6 as proposed in Docket No. RD20– approval of proposed Reliability and in the related submittal to OMB. 3–000 follow:

FERC–725N IN DOCKET NO. RD20–3–000

Annual Annual Total Average Total annual Cost per 1 number of number of responses per number of burden hrs. & Cost burden hours & cost respondent respondents respondent responses ($) per response ($) (rounded) ($)

(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1)

GO 7 ...... 969 1 969 40 hours; $3,200 ... 38,760 hours; $3,100,800 .. $3,200 PC 8 ...... 71 1 71 40 hours; $3,200 ... 2,840 hours; $ 227,200 ...... 3,200 DP 9 ...... 318 1 318 40 hours & $3,200 12,720 hours; $1,017,600 .. 3,200 TO 10 ...... 321 1 321 40 hours & $3,200 12,840 hours; $1,027,200 .. 3,200

Total ...... 1,679 ...... 67,160 hours; $5,372,800 ......

Comments: Comments are invited on: DEPARTMENT OF ENERGY Generation, LLC, Bath County Energy, (1) Whether the collection of LLC, Bolt Energy Marketing, LLC, information is necessary for the proper Federal Energy Regulatory Buchanan Energy Services Company, performance of the functions of the Commission LLC, Buchanan Generation, LLC, Commission, including whether the Chambersburg Energy, LLC, Columbia Combined Notice Filings #1 information will have practical utility; Energy LLC, Doswell Limited (2) the accuracy of the agency’s estimate Take notice that the Commission Partnership, Gans Energy, LLC, Helix of the burden and cost of the collection received the following electric rate Ironwood, LLC, Helix Maine Wind of information, including the validity of filings: Development, LLC, Helix Ravenswood, the methodology and assumptions used; LLC, LifeEnergy, LLC, LSP University Docket Numbers: ER10–2739–026; Park, LLC, Ocean State Power LLC, (3) ways to enhance the quality, utility ER10–1631–015; ER10–1854–015; and clarity of the information collection; Riverside Generating Company, L.L.C., ER10–1892–013; ER10–2678–016; Rockford Power, LLC, Rockford Power and (4) ways to minimize the burden of ER10–2729–010; ER10–2744–016; II, LLC, Seneca Generation, LLC, the collection of information on those ER11–3320–015; ER11–3321–009; Springdale Energy, LLC, Troy Energy, who are to respond, including the use ER13–2316–013; ER14–1219–010; LLC, University Park Energy, LLC, of automated collection techniques or ER14–19–014; ER14–2548–007; ER16– Wallingford Energy LLC, West Deptford other forms of information technology. 1652–014; ER16–1732–009; ER16–2405– Energy, LLC, Yards Creek Energy, LLC. 009; ER16–2406–010; ER17–1946–008; Dated: June 30, 2020. Description: Updated Market Power ER17–1947–003; ER17–1948–003; Kimberly D. Bose, Analysis for the Northeast Region of the ER17–989–008; ER17–990–008; ER17– LS Northeast MBR Sellers. Secretary. 992–008; ER17–993–008; ER18–95–005; [FR Doc. 2020–14533 Filed 7–6–20; 8:45 am] ER20–1440–001; ER20–660–001. Filed Date: 6/26/20. BILLING CODE 6717–01–P Applicants: LS Power Marketing, LLC, Accession Number: 20200626–5422. Armstrong Power, LLC, Aurora Comments Due: 5 p.m. ET 8/25/20.

2 16 U.S.C. 824o(e)(3). FERC 61,190, order on reh’g, 119 FERC 61,046 6 Commission staff estimates that the industry’s 3 Rules Concerning Certification of the Electric (2007), aff’d sub nom. Alcoa Inc. v. FERC, 564 F.3d skill set and cost (for wages and benefits) for FERC– Reliability Organization; and Procedures for the 1342 (D.C. Cir. 2009). 725N(1) are approximately the same as the Establishment, Approval, and Enforcement of 5 Burden is defined as the total time, effort, or Commission’s average cost. The FERC 2019 average salary plus benefits for one FERC full-time Electric Reliability Standards, Order No. 672, FERC financial resources expended by persons to equivalent (FTE) is $167,091/year (or $80.00/hour). Stats. & Regs. 31,204, order on reh’g, Order No. generate, maintain, retain, or disclose or provide 7 Generator Owner. 672–A, FERC Stats. & Regs. 31,212 (2006). information to or for a federal agency. See 5 CFR 4 8 Planning Coordinator. North American Electric Reliability Corp., 116 1320 for additional information on the definition of FERC ¶ 61,062, order on reh’g and compliance, 117 9 Distribution Provider. information collection burden. FERC 61,126 (2006), order on compliance, 118 10 Transmission Owner.

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Docket Numbers: ER10–2794–032; Description: Updated Market Power Description: Updated Market Power ER12–1825–030; ER14–2672–017. Analysis for the Riverstone Northeast Analysis for the Northeast Region of the Applicants: EDF Trading North MBR Sellers. Clearway Northeast MBR Sellers. America, LLC, EDF Energy Services, Filed Date: 6/29/20. Filed Date: 6/25/20. LLC, EDF Industrial Power Services Accession Number: 20200629–5436. Accession Number: 20200625–5192. (CA), LLC. Comments Due: 5 p.m. ET 8/28/20. Comments Due: 5 p.m. ET 8/25/20. Description: Updated Market Power Docket Numbers: ER17–1314–003; Docket Numbers: ER20–2014–000. Analysis for the Northeast Region of ER10–2398–009; ER10–2399–009; Applicants: Rattlesnake Flat, LLC. EDF Trading North America, LLC, et al. ER10–2406–010; ER10–2408–006; Description: Supplement to June 8, Filed Date: 6/29/20. ER10–2409–009; ER10–2410–009; 2020 Rattlesnake Flat, LLC tariff filing. Accession Number: 20200629–5414. ER10–2411–010; ER10–2412–010; Filed Date: 6/25/20. Comments Due: 5 p.m. ET 8/28/20. ER11–2935–011; ER13–1816–012; Accession Number: 20200625–5187. Docket Numbers: ER15–1456–009; ER14–1933–009; ER16–1152–004; Comments Due: 5 p.m. ET 7/6/20. ER10–2934–015; ER10–2959–016; ER16–1724–006; ER17–1315–006; Docket Numbers: ER20–2239–000. ER11–2335–015; ER11–3859–020; ER18–1189–004; ER19–1281–001; Applicants: Southwest Power Pool, ER11–4634–009; ER14–1699–010; ER19–1282–002. Inc. ER15–1457–009; ER15–748–006; ER17– Applicants: Arkwright Summit Wind Description: § 205(d) Rate Filing: 436–008; ER18–920–005; ER19–464– Farm LLC, Blackstone Wind Farm, LLC, Kansas Power Pool Formula Rate to be 002; ER19–967–003; ER19–968–003. Blackstone Wind Farm II LLC, Applicants: Beaver Falls, L.L.C., effective 9/1/2020. Headwaters Wind Farm LLC, High Trail Filed Date: 6/29/20. Chambers Cogeneration Limited Wind Farm, LLC, Lexington Chenoa Partnership, Dighton Power, LLC, Accession Number: 20200629–5433. Wind Farm LLC, Jericho Rise Wind Comments Due: 5 p.m. ET 7/20/20. Fairless Energy, L.L.C., Garrison Energy Farm LLC, Marble River, LLC, Meadow Center LLC, Hazleton Generation LLC, The filings are accessible in the Lake Wind Farm LLC, Meadow Lake Commission’s eLibrary system by Logan Generating Company, LP, Wind Farm II LLC, Meadow Lake Wind Manchester Street, L.L.C., Marco DM clicking on the links or querying the Farm III LLC, Meadow Lake Wind Farm docket number. Holdings, L.L.C., Marcus Hook Energy, IV LLC, Meadow Lake Wind Farm V L.P., Milford Power, LLC, Plum Point Any person desiring to intervene or LLC, Meadow Lake Wind Farm VI LLC, protest in any of the above proceedings Services Company, LLC, Syracuse, Paulding Wind Farm II LLC, Paulding L.L.C., Vermillion Power, L.L.C. must file in accordance with Rules 211 Wind Farm III LLC, Paulding Wind and 214 of the Commission’s Description: Triennial Market Power Farm IV LLC, Sustaining Power Update of Beaver Falls, L.L.C., et al. Regulations (18 CFR 385.211 and Solutions LLC. 385.214) on or before 5:00 p.m. Eastern Filed Date: 6/29/20. Description: Updated Market Power Accession Number: 20200629–5472. time on the specified comment date. Analysis for the Northeast Region of Comments Due: 5 p.m. ET 8/28/20. Protests may be considered, but Arkwright Summit Wind Farm LLC, et intervention is necessary to become a Docket Numbers: ER15–1905–008. al. party to the proceeding. Applicants: Amazon Energy, LLC. Filed Date: 6/26/20. Description: Triennial Market Power eFiling is encouraged. More detailed Accession Number: 20200626–5423. information relating to filing Analysis for the Northeast Region of Comments Due: 5 p.m. ET 8/25/20. Amazon Energy, LLC. requirements, interventions, protests, Filed Date: 6/26/20. Docket Numbers: ER18–2399–003; service, and qualifying facilities filings Accession Number: 20200626–5419. ER15–1147–003; ER18–1990–003; can be found at: http://www.ferc.gov/ Comments Due: 5 p.m. ET 8/25/20. ER19–1194–002. docs-filing/efiling/filing-req.pdf. For Docket Numbers: ER15–2013–011; Applicants: Canal Generating LLC, other information, call (866) 208–3676 ER10–2435–018; ER10–2440–013; Canal 3 Generating LLC, Stonepeak (toll free). For TTY, call (202) 502–8659. ER10–2442–015; ER10–2444–017; Kestrel Energy Marketing LLC, Dated: June 30, 2020. ER10–2446–013; ER10–2449–015; Bucksport Generation LLC. ER10–3286–014; ER10–3299–013; Description: Updated Market Power Nathaniel J. Davis, Sr., ER12–2510–010; ER12–2512–010; Analysis for the Northeast Region of Deputy Secretary. ER15–2014–007; ER15–2018–006; Canal Generating LLC, et al. [FR Doc. 2020–14549 Filed 7–6–20; 8:45 am] ER15–2022–006; ER15–2026–006; Filed Date: 6/29/20. BILLING CODE 6717–01–P ER18–2252–002; ER19–2250–003; Accession Number: 20200629–5437. ER19–481–003. Comments Due: 5 p.m. ET 8/28/20. Applicants: Talen Energy Marketing, Docket Numbers: ER19–106–002. DEPARTMENT OF ENERGY LLC, Brandon Shores LLC, Brunner Applicants: Birdsboro Power LLC. Island, LLC, Camden Plant Holding, Description: Triennial Compliance Federal Energy Regulatory L.L.C., Dartmouth Power Associates Filing and Notice of Non-Material Commission Change in Status of Birdsboro Power Limited Partnership, Elmwood Park Combined Notice of Filings #1 Power, LLC, H.A. Wagner LLC, LMBE LLC. Project Company LLC, Martins Creek, Filed Date: 6/29/20. Take notice that the Commission has LLC, MC Project Company LLC, Accession Number: 20200629–5399. received the following Natural Gas Millennium Power Partners, LP, Comments Due: 5 p.m. ET 8/28/20. Pipeline Rate and Refund Report filings: Montour, LLC, New Athens Generating Docket Numbers: ER19–1200–001; Docket Numbers: RP20–865–001. Company, LLC, Newark Bay ER10–2346–010; ER10–2353–010; Applicants: Leaf River Energy Center Cogeneration Partnership, L.P, ER11–4351–010; ER19–842–001. LLC. Pedricktown Cogeneration Company LP, Applicants: Clearway Power Description: Compliance filing Leaf Susquehanna Nuclear, LLC, York Marketing LLC, Energy Center Paxton River Energy Center LLC NAESB Generation Company LLC, TrailStone LLC, Forward WindPower LLC, Lookout Compliance Filing to be effective 6/25/ Energy Marketing, LLC. WindPower LLC, Pinnacle Wind, LLC. 2020.

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Filed Date: 6/29/20. NEXUS Project in the August 25, 2017 within 45 days.4 The Commission will Accession Number: 20200629–5341. Order Issuing Certificates and Granting address all arguments relating to Comments Due: 5 p.m. ET 7/13/20. Abandonment 1 (August 25 Order). The whether the applicant has demonstrated Docket Numbers: RP20–970–000. August 25 Order required NEXUS to there is good cause to grant the Applicants: Algonquin Gas complete construction and make the extension.5 The Commission will not Transmission, LLC. facilities available for service within consider arguments that re-litigate the Description: § 4(d) Rate Filing: two years of the Order date. NEXUS issuance of the certificate order, Negotiated Rates—Various Releases to commenced service on the majority of including whether the Commission Emera Energy to be effective 7/1/2020. the NEXUS Project on October 13, 2018. properly found the project to be in the On July 16, 2019, the Commission Filed Date: 6/29/20. public convenience and necessity and granted NEXUS’s request for an Accession Number: 20200629–5204. whether the Commission’s Comments Due: 5 p.m. ET 7/13/20. extension of time until and including August 25, 2020 to complete environmental analysis for the Docket Numbers: RP20–971–000. certificate complied with the National Applicants: El Paso Natural Gas construction and make available for Environmental Policy Act.6 At the time Company, L.L.C. service the remaining NEXUS Project a pipeline requests an extension of time, Description: § 4(d) Rate Filing: facilities, which included the Waterville Negotiated Rate Update Filing (Conoco Compressor Station and the TGP meter orders on certificates of public July 20) to be effective 7/1/2020. station and related facilities in convenience and necessity are final and Filed Date: 6/29/20. Columbiana County Ohio. NEXUS states the Commission will not re-litigate their Accession Number: 20200629–5332. that it has completed construction of the issuance.7 The OEP Director, or his or Comments Due: 5 p.m. ET 7/13/20. TGP meter station and related facilities her designee, will act on all of those The filings are accessible in the and placed them into service. extension requests that are uncontested. Commission’s eLibrary system by NEXUS states that it commenced In addition to publishing the full text clicking on the links or querying the service for approximately 840,000 of this document in the Federal docket number. dekatherms per day (Dth/d) of the total Register, the Commission provides all Any person desiring to intervene or 1,500,000 Dth/d of certificated capacity. interested persons an opportunity to NEXUS asserts that it has since protest in any of the above proceedings view and/or print the contents of this increased firm commitments on the must file in accordance with Rules 211 document via the internet through the pipelines to more than 1,315,000 Dth/d. and 214 of the Commission’s Commission’s Home Page (http:// Regulations (18 CFR 385.211 and NEXUS avers that the Waterville Compressor Station, the remaining www.ferc.gov) using the eLibrary link. 385.214) on or before 5:00 p.m. Eastern Enter the docket number excluding the time on the specified date(s). Protests NEXUS Project facility for which construction has not yet been last three digits in the docket number may be considered, but intervention is field to access the document. At this necessary to become a party to the completed, is required to provide its full time, the Commission has suspended proceeding. certificated capacity. access to Commission’s Public eFiling is encouraged. More detailed This notice establishes a 15-calendar information relating to filing day intervention and comment period Reference Room, due to the requirements, interventions, protests, deadline. Any person wishing to proclamation declaring a National service, and qualifying facilities filings comment on NEXUS’s request for an Emergency concerning the Novel can be found at: http://www.ferc.gov/ extension of time may do so. No reply Coronavirus Disease (COVID–19), issued docs-filing/efiling/filing-req.pdf. For comments or answers will be by the President on March 13, 2020. For other information, call (866) 208–3676 considered. If you wish to obtain legal assistance, contact FERC at (toll free). For TTY, call (202) 502–8659. status by becoming a party to the [email protected] or call proceedings for this request, you toll-free, (886) 208–3676 or TYY, (202) Dated: June 30, 2020. should, on or before the comment date 502–8659. Nathaniel J. Davis, Sr., stated below, file a motion to intervene The Commission strongly encourages Deputy Secretary. in accordance with the requirements of electronic filings of comments, protests [FR Doc. 2020–14547 Filed 7–6–20; 8:45 am] the Commission’s Rules of Practice and and interventions in lieu of paper using BILLING CODE 6717–01–P Procedure (18 CFR 385.214 or 385.211) the eFiling link at http://www.ferc.gov. and the Regulations under the Natural Gas Act (18 CFR 157.10).2 Persons unable to file electronically DEPARTMENT OF ENERGY As a matter of practice, the should submit an original and three Commission itself generally acts on copies of the protest or intervention to Federal Energy Regulatory requests for extensions of time to the Federal Energy Regulatory Commission complete construction for Natural Gas Commission, 888 First Street NE, [Docket No. CP16–22–000] Act facilities when such requests are Washington, DC 20426. contested before order issuance. For Comment Date: 5:00 p.m. Eastern NEXUS Gas Transmission, LLC; Notice those extension requests that are Time on July 15, 2020. of Extension of Time Request contested,3 the Commission will aim to issue an order acting on the request 4 Take notice that on June 26, 2020, Algonquin Gas Transmission, LLC, 170 FERC 61,144, at P 40 (2020). NEXUS Gas Transmission, LLC 1 NEXUS Gas Transmission, LLC, et al., 160 FERC 5 Id. at P 40. (NEXUS) requested that the Federal 61,022 (2017). 6 Similarly, the Commission will not re-litigate Energy Regulatory Commission 2 Only motions to intervene from entities that the issuance of an NGA section 3 authorization, (Commission) grant an extension of were party to the underlying proceeding will be including whether a proposed project is not time, until August 25, 2021, to complete accepted. Algonquin Gas Transmission, LLC, 170 inconsistent with the public interest and whether FERC 61,144, at P 39 (2020). the Commission’s environmental analysis for the the construction of the Waterville 3 Contested proceedings are those where an permit order complied with NEPA. Compressor Station in Lucas County, intervenor disputes any material issue of the filing. 7 Algonquin Gas Transmission, LLC, 170 FERC Ohio, as authorized as part of the 18 CFR 385.2201(c)(1) (2019). 61,144, at P 40 (2020).

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Dated: June 30, 2020. Dates: June 29, 2020. pollution which may reasonably be Kimberly D. Bose, Nathaniel J. Davis, Sr., anticipated to endanger public health or Secretary. Deputy Secretary. welfare’’; 1 and to issue air quality [FR Doc. 2020–14527 Filed 7–6–20; 8:45 am] [FR Doc. 2020–14548 Filed 7–6–20; 8:45 am] criteria for them. The air quality criteria BILLING CODE 6717–01–P BILLING CODE 6717–01–P are to ‘‘accurately reflect the latest scientific knowledge useful in indicating the kind and extent of all DEPARTMENT OF ENERGY ENVIRONMENTAL PROTECTION identifiable effects on public health or AGENCY welfare which may be expected from the Federal Energy Regulatory presence of [a] pollutant in the ambient Commission [Docket ID No. EPA–HQ–OAR–2020–0312; air. . . .’’. Under section 109 of the Act, FRL–10011–92–ORD] EPA is then to establish NAAQS for Combined Notice of Filings each pollutant for which EPA has issued Call for Information on the Integrated criteria. Section 109(d)(1) of the Act Take notice that the Commission has Science Assessment for Lead subsequently requires periodic review received the following Natural Gas and, if appropriate, revision of existing Pipeline Rate and Refund Report filings: AGENCY: Environmental Protection Agency (EPA). air quality criteria to reflect advances in Docket Number: PR20–68–000. ACTION: Notice; call for information. scientific knowledge on the effects of Applicants: Columbia Gas of Ohio, the pollutant on public health or Inc. SUMMARY: The Environmental Protection welfare. EPA is also required to review Description: Tariff filing per Agency (EPA) is preparing an Integrated and, if appropriate, revise the NAAQS, 284.123(b),(e)/: COH Rates effective May Science Assessment (ISA) as part of the based on the revised air quality criteria 29 2020 to be effective 5/29/2020. review of the primary and secondary (for more information on the NAAQS Filed Date: 6/26/2020. National Ambient Air Quality Standards review process, see https:// Accession Number: 202006265134. (NAAQS) for Lead (Pb). The ISA will be www.epa.gov/naaqs). Comments/Protests Due: 5 p.m. ET 7/ completed by EPA’s Office of Research EPA has established NAAQS for six 17/2020. and Development’s Center for Public criteria pollutants, including for lead Health and Environmental Assessment (Pb). Periodically, EPA reviews the Docket Numbers: RP18–923–000. (CPHEA). When final, the ISA is scientific basis for these standards by Applicants: Enable Mississippi River intended to update the previous Pb ISA preparing an ISA (formerly called an Air Transmission, LLC. (EPA/600/R–10/075F), published on Quality Criteria Document). The ISA Description: Report Filing: MRT June 26, 2013. Interested parties are provides the scientific basis for EPA’s Refund and Billing Adjustment invited to assist EPA in developing and decisions, in conjunction with Report—RP18–923 & RP20–131. refining the scientific information base additional technical and policy Filed Date: 6/26/20. for the review of the Pb NAAQS by assessments, on the adequacy of the Accession Number: 20200626–5209. submitting research studies and data current NAAQS and the appropriateness Comments Due: 5 p.m. ET 7/8/20. that have been published, accepted for of possible alternative standards. Early steps in this process include Docket Numbers: RP20–968–000. publication, or presented at a public scientific meeting since January 1, 2011. announcing the beginning of this Applicants: Big Sandy Pipeline, LLC. periodic NAAQS review and the DATES: All communications and Description: § 4(d) Rate Filing: Big development of the ISA, and EPA information should be received by EPA Sandy EPC 2020 to be effective 8/1/ requesting that the public submit by September 8, 2020. 2020. scientific literature that they want to Filed Date: 6/26/20. ADDRESSES: Information may be bring to the attention of the Agency as submitted electronically, by mail, by Accession Number: 20200626–5239. it begins this process. The Clean Air facsimile, or by hand delivery/courier. Comments Due: 5 p.m. ET 7/8/20. Scientific Advisory Committee Please follow the detailed instructions (CASAC), whose review and advisory The filings are accessible in the as provided in the section of this notice functions are mandated by section Commission’s eLibrary system by entitled SUPPLEMENTARY INFORMATION. 109(d)(2) of the Clean Air Act, is clicking on the links or querying the FOR FURTHER INFORMATION CONTACT: For charged (among other things) with docket number. information on the period of independent scientific review of the Any person desiring to intervene or submission, contact the OAR Docket at Agency’s air quality criteria. protest in any of the above proceedings the EPA Headquarters Docket Center; The ISA will build on the scientific must file in accordance with Rules 211 phone: 202–566–1742; fax: 202–566– assessment for the last review,2 focusing and 214 of the Commission’s 9744; or email: [email protected]. on assessing the information newly Regulations (18 CFR 385.211 and For technical information, contact Evan available since that considered in the 385.214) on or before 5:00 p.m. Eastern Coffman; phone: 919–541–0567; fax: 2013 ISA. With regard to development time on the specified date(s). Protests 919–541–1818; or email: of the ISA, the public is encouraged to may be considered, but intervention is [email protected]; or Meredith assist in identifying relevant scientific necessary to become a party to the Lassiter; phone: 919–541–3200; fax: proceeding. 919–541–1818; or email: 1 Under Clean Air Act section 302(h), welfare eFiling is encouraged. More detailed [email protected]. effects include, but are not limited to, ‘‘effects on soils, water, crops, vegetation, manmade materials, information relating to filing SUPPLEMENTARY INFORMATION: animals, wildlife, weather, visibility, and climate, requirements, interventions, protests, damage and deterioration of property, and hazards service, and qualifying facilities filings I. Information About the Document to transportation, as well as effects on economic can be found at: http://www.ferc.gov/ Section 108(a) of the Clean Air Act values and on personal comfort and well-being.’’ 2 docs-filing/efiling/filing-req.pdf. For directs the Administrator to identify The scientific assessment for the last review is documented in the Integrated Science Assessment other information, call (866) 208–3676 certain air pollutants which, among for Lead (Final Report, July 2013), EPA/600/R–10/ (toll free). For TTY, call (202) 502–8659. other things, ‘‘cause or contribute to air 075F; 78 FR 38318, June 26, 2013.

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information for the review by Air-related Pb pathways of human requests in advance and then make an submitting research studies that were exposure include inhalation of ambient appointment to retrieve the material. not part of the prior review, and have air or ingestion of food, water or other Visitors will be allowed entrance to the been published or accepted for materials, including dust and soil, Reading Room by appointment only, publication in a peer-reviewed journal. containing Pb that has deposited from and no walk-ins will be allowed. The Agency is interested in obtaining ambient air. Instructions: Direct your comments to information from new and emerging EPA also seeks recent information in Docket ID No. EPA–HQ–OAR–2020– studies showing effects or no effects other areas of Pb research such as 0312. Please ensure that your comments from Pb exposure. For example, the human and ecological exposure are submitted within the specified Agency is interested in information assessment and exposure assessment comment period. Comments received about studies of effects of controlled methodologies, sources and emissions, after the closing date will be marked exposure to Pb, including in laboratory chemistry and physics, sampling and ‘‘late,’’ and may only be considered if animals and in vitro systems; analytical methodology, ambient time permits. It is EPA’s policy to epidemiologic (observational) studies of concentrations and size distributions, include all materials it receives in the associations of health outcomes with including environmental media public docket without change and to population exposures to Pb; and studies concentration changes in response to make the materials available online at of ecological effects of Pb exposure. changes in Pb deposition, and other www.regulations.gov, including any With regard to health effect studies, of effects on public welfare or the personal information provided, unless particular interest are those studies that environment not listed above. materials includes information claimed address or provide new information on The Agency also seeks information to be Confidential Business Information health outcomes for which the scientific regarding the design and scope of the (CBI) or other information whose evidence presented in the 2013 ISA review of the air quality criteria and the disclosure is restricted by statute. Do supported a ‘‘causal relationship’’ or primary (health-based) and secondary not submit information that you ‘‘likely to be causal relationship’’ with (welfare-based) Pb standards to ensure consider to be CBI or otherwise Pb, e.g., cognitive effects in children, that it addresses key policy-relevant protected through www.regulations.gov cardiovascular effects, and immune issues and considers the new science or email. The www.regulations.gov system effects; endpoints with less that is relevant to informing our website is an ‘‘anonymous access’’ overall evidence and/or notable understanding of these issues. The system, which means EPA will not uncertainties at the time of the 2013 Pb Agency also seeks new scientific know your identity or contact ISA, such as attention deficit information that may address key information unless you provide it in the hyperactivity disorder, uncertainties identified in the last Pb body of your comment. If you send an neurodegenerative effects, and adult NAAQS review, which are provided in email directly to EPA without going obesity; endpoints not previously the Policy Assessment (EPA–452/R–14, through www.regulations.gov, your identified in the 2013 Pb ISA; May 2014).3 Other opportunities for email address will be automatically relationships between Pb exposure submission of new peer-reviewed, captured and included as part of the concentrations and occurrence of published (or in-press) papers will be materials that are placed in the public health-related endpoints; health effects possible as part of public comment on docket and made available on the associated with blood lead levels below the draft ISAs that will be reviewed by internet. If you submit electronic 10 mg/dL and/or with near current the CASAC. materials, EPA recommends that you exposure concentrations; Pb II. How To Submit Technical Comments include your name and other contact toxicokinetics and toxicokinetic to the Docket at www.regulations.gov information in the body of your modeling; information and data useful materials and with any disk or CD–ROM for assessing biological plausibility for Submit your materials identified by you submit. If EPA cannot read your Pb-related health effects; and Docket ID No. EPA–HQ–OAR–2020– materials due to technical difficulties identification of populations and life 0312 by one of the following methods: • and cannot contact you for clarification, stages at increased risk of Pb-related www.regulations.gov: Follow the EPA may not be able to consider the health effects. For ecological effects of on-line instructions for submitting materials you submit. Electronic files Pb, studies that address or provide new comments. • should avoid the use of special information on terrestrial and aquatic Email: [email protected]. • characters, any form of encryption, and biota are of particular interest including, Fax: 202–566–9744. Due to COVID– be free of any defects or viruses. For but not necessarily limited to, effects of 19, there may be a delay in processing additional information about EPA’s Pb on vegetation, soil and aquatic fauna, comments submitted by fax. • public docket visit EPA’s Docket Center communities and populations of Mail: Office of Air and Radiation homepage at www.epa.gov/epahome/ microorganisms, plants, and animals, as (OAR) Docket (Mail Code: 28221T), U.S. dockets.htm. Environmental Protection Agency, 1200 well as research on fate and transport of Docket: Documents in the docket are Pennsylvania Ave. NW, Washington, DC Pb in environmental media, and listed in the www.regulations.gov index. 20460. The phone number is 202–566– exposure-response relationships Although listed in the index, some 1752. Due to COVID–19, there may be between Pb in ambient air or other information is not publicly available, a delay in processing comments media and ecological endpoints. e.g., CBI or other information whose submitted by mail. Information particular to air-related disclosure is restricted by statute. Note: The EPA Docket Center and pathways of human and ecological Certain other materials, such as Reading Room is currently in the exposure, including those involving copyrighted material, are publicly reopening process. Visitors may be deposition, are also of interest to the available only in hard copy. Publicly considered on an exception basis. Agency. Air-related pathways are those available docket materials are available Visitors must complete docket material that include air and may also involve either electronically in media other than air, including indoor 3 The 2014 Policy Assessment is available at: www.regulations.gov or in hard copy at and outdoor dust, soil, surface water https://www3.epa.gov/ttn/naaqs/standards/pb/ the OAR Docket in EPA’s Headquarters and sediments, vegetation and biota. data/140501_pa_pb_fin.pdf. Docket Center.

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Dated: June 30, 2020. Submit your written comments, ask EPA to initiate a rulemaking for Wayne Cascio, identified by Docket Identification (ID) additional exemptions for laminated Director, Center for Public Health and number EPA–HQ–OPPT–2019–0470, products from the definition of Environmental Assessment. using the Federal eRulemaking Portal at hardwood plywood in the formaldehyde [FR Doc. 2020–14575 Filed 7–6–20; 8:45 am] http://www.regulations.gov. Follow the emission standards for composite wood BILLING CODE 6560–50–P online instructions for submitting products final rule. While the issue is of comments. Do not submit electronically most relevance to laminated product any information you consider to be producers, in general, importers, ENVIRONMENTAL PROTECTION Confidential Business Information (CBI) distributors and retailers who are AGENCY or other information whose disclosure is affected by the formaldehyde emission restricted by statute. standards for composite wood products [EPA–HQ–OPPT–2019–0470; FRL–10009– 91] Please note that due to the public final rule may also be interested in this health emergency the EPA Docket workshop. Since other stakeholders may Public Workshop; Laminated Center (EPA/DC) and Reading Room also be interested, the Agency has not Products—Formaldehyde Emission was closed to public visitors on March attempted to describe all the specific Standards for Composite Wood 31, 2020. Our EPA/DC staff will entities that may be interested in the Products continue to provide customer service issues to be discussed at the public via email, phone, and webform. For workshop. AGENCY: Environmental Protection further information on EPA/DC services, Agency (EPA). docket contact information and the B. How can I get copies of this document ACTION: Notice. current status of the EPA/DC and and other related information? Reading Room, please visit https:// The docket for this action, identified SUMMARY: EPA is announcing a public www.epa.gov/dockets. by docket ID number EPA–HQ–OPPT– workshop to discuss the laminated FOR FURTHER INFORMATION CONTACT: 2019–0470, is available at http:// product provisions and the rulemaking For technical information about the www.regulations.gov. For assistance petition for exemption from the with the docket, and additional definition of hardwood plywood in the Technical Issues Workshop; Formaldehyde Emission Standards for information about commenting, please formaldehyde emission standards for go to http://www.epa.gov/dockets. composite wood products final rule of Composite Wood Products workshop 2016. The workshop will aid with contact: Todd Coleman, National II. Background informing potential development of Programs Chemical Division (7404T), Office of Pollution Prevention and The final rule, entitled future guidance for petitioning EPA for ‘‘Formaldehyde Emission Standards for an exemption under the 2016 final rule. Toxics, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Composite Wood Products’’ and The primary audience for this public codified at 40 CFR part 770, published workshop is Third Party Certifiers Washington, DC 20460–0001; telephone number: (202) 564–1208; email address: in the Federal Register of December 12, (TPCs), panel producers, and fabricators 2016 (81 FR 89674) (FRL–9949–90) and or laminated product producers who [email protected]. For workshop logistics or registration became effective on May 22, 2017 (82 contract with TPCs to certify composite contact: Sarah Cox, National Program FR 14324, March 21, 2017) (FRL–9960– wood products under the 2016 final Chemicals Division (7404T), Office of 28–OP). Since publication of the final rule. This workshop is also open to the Pollution Prevention and Toxics, rule, EPA received feedback from general public. Environmental Protection Agency, 1200 regulated stakeholders requesting DATES: The workshop will be held on Pennsylvania Ave. NW, Washington, DC guidance on the process at 40 CFR September 8, 2020 from 9:30 a.m. to 20460–0001; telephone number: (202) 770.4(b) for the laminated product 5:30 p.m. (EST). 564–3961; email address: cox.sarah@ rulemaking petition for exemption from To participate in the workshop, you epa.gov. the definition of hardwood plywood. In must register online on or before August For general information contact: The the Federal Register of May 24, 2018, 31, 2020. TSCA-Hotline, ABVI-Goodwill, 422 EPA announced a public related to Written comments that participants South Clinton Ave., Rochester, NY Technical Issues—Formaldehyde would like to be considered during the 14620; telephone number: (202) 554– Emission Standards for Composite workshop should be submitted on or 1404; email address: TSCA-Hotline@ Wood Products (83 FR 24104) (FRL– before August 24, 2020. EPA will also epa.gov. 9978–21), where the Agency stated its accept written comments and materials intent to address the issue of working submitted after the conclusion of the SUPPLEMENTARY INFORMATION: with stakeholders, through an workshop until November 4, 2020. I. General Information additional workshop, to inform To request accommodation of a potential development of future disability, please contact the technical A. Does this action apply to me? guidance on how one can petition the person listed under FOR FURTHER This public workshop is primarily Agency for this exemption. Thus, EPA INFORMATON CONTACT, preferably at least directed to the TPCs, panel producers, will host this public workshop to 10 days prior to the workshop, to give and fabricators or laminated product discuss what types of information a EPA as much time as possible to process producers who contract with TPCs to petitioner should consider providing the your request. certify composite wood products under Agency to support a determination on a ADDRESSES: The workshop will be held the formaldehyde emission standards petition submitted under 40 CFR remotely via a teleconference platform for composite wood products final rule 770.4(b). The workshop will also and does not have an in-person codified in 2016 at 40 CFR part 770. discuss what a typical submittal process attendance option. To register to EPA is hosting the workshop to help may look like. participate in the workshop, go to inform potential development of future The Agency’s intent is for participants https://tscatitlevi.eventbrite.com. See guidance to assist those seeking to to actively engage in an open dialogue Unit III. for information on public petition the Agency through the with EPA and other participants on the participation in the workshop. provisions at 40 CFR 770.4(b), which agenda topics and to provide supporting

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documentation (in advance or after the EXPORT-IMPORT BANK submitted on official company or workshop) as appropriate for EPA’s organization letterhead. consideration. The Agency plans to Sub-Saharan Africa Advisory Full application requirements and record the workshop and will post a Committee; Requests for Nominations materials will be available beginning written transcript in the docket for this July 6, 2020 at: https://www.exim.gov/ The Export-Import Bank of the United about/leadership/advisory-committee workshop during the comment period States (EXIM) is accepting nominations that follows the workshop. All nominations are due by 5:30 p.m. for the EXIM Sub-Saharan Africa EDT, July 31, 2020. The Agency is allowing the comment Advisory Committee from July 6, 2020 For additional information please period on this public workshop to to July 31, 2020. contact the Office of External remain open until after the workshop to The Congressionally-established Sub- Engagement at [email protected]. provide stakeholders and interested Saharan Africa Advisory Committee parties ample time to develop additional meets at least twice annually to provide Joyce B. Stone, comments, compile data, studies, and/or guidance and advice regarding EXIM Assistant Corporate Secretary. reports that can aid EPA in considering policies and programs designed to [FR Doc. 2020–14472 Filed 7–6–20; 8:45 am] the development of guidance for support the expansion of financing BILLING CODE 6690–01–P submitting and supporting a laminated support for U.S. manufactured goods product rulemaking petition under 40 and services in Sub-Saharan Africa. CFR 770.4(b) for exemption from the Candidates wishing to be considered FEDERAL COMMUNICATIONS definition of hardwood plywood. for membership to the Sub-Saharan COMMISSION Africa Advisory Committee must submit Should the Agency develop guidance [OMB 3060–0906; FRS 16901] related to the rulemaking petitions for a questionnaire, resume, and letter of support demonstrating why they would exemption under 40 CFR 770.4(b), EPA Information Collection Being be asset to the committee. Letters may will provide a draft for public comment Submitted for Review and Approval to be written by candidates themselves or and post such guidance on the Agency’s Office of Management and Budget by supportive individuals, and should website. be submitted on official company or AGENCY: Federal Communications An agenda for the public workshop organization letterhead. Commission. has been included in the docket for this Full application requirements and ACTION: Notice and request for workshop. materials will be available beginning comments. III. How can I request to participate in July 6, 2020 at: https://www.exim.gov/ about/leadership/sub-saharan-africa- SUMMARY: As part of its continuing effort this workshop? advisory-committee. to reduce paperwork burdens, as A. Registration All nominations are due by 5:30 p.m. required by the Paperwork Reduction EDT, July 31, 2020. Act (PRA) of 1995, the Federal The workshop will only be accessible For additional information please Communications Commission (FCC or remotely (i.e., web conferencing) for contact the Office of External the Commission) invites the general registered participants. Participants will Engagement at [email protected]. public and other Federal Agencies to be provided information on how to take this opportunity to comment on the connect to the workshop prior to its Joyce B. Stone, following information collection. start that is sent to the email address Assistant Corporate Secretary. Pursuant to the Small Business participants provided when they [FR Doc. 2020–14473 Filed 7–6–20; 8:45 am] Paperwork Relief Act of 2002, the FCC registered for this workshop. BILLING CODE 6690–01–P seeks specific comment on how it can To register to attend the workshop further reduce the information and receive remote access, you must collection burden for small business EXPORT-IMPORT BANK concerns with fewer than 25 employees. register online as described under ADDRESSES and by the date specified Advisory Committee: Request for DATES: Written comments and under DATES. Nominations recommendations for the proposed information collection should be B. Required Registration Information The Export-Import Bank of the United submitted on or before August 6, 2020. States (EXIM) is accepting nominations ADDRESSES: Attendees and participants will be Comments should be sent to for the EXIM Advisory Committee from www.reginfo.gov/public/do/PRAMain. offered the opportunity to speak and July 6, 2020 to July 31, 2020. Find this particular information provide feedback during the workshop. The Congressionally-established collection by selecting ‘‘Currently under To register for the workshop online, you Advisory Committee meets at least 30-day Review—Open for Public must provide your full name, quarterly to advise EXIM concerning its Comments’’ or by using the search organization or affiliation, and contact policy and programs, in particular on function. Your comment must be information. the extent to which EXIM provides submitted into www.reginfo.gov per the Authority: 15 U.S.C. 2697. competitive financing to support above instructions for it to be American jobs through exports. Dated: June 30, 2020. considered. In addition to submitting in Candidates wishing to be considered www.reginfo.gov also send a copy of Alexandra Dapolito Dunn, for membership to the Advisory your comment on the proposed Assistant Administrator, Office of Chemical Committee must submit a questionnaire, information collection to Cathy Safety and Pollution Prevention. resume, and letter of support Williams, FCC, via email to PRA@ [FR Doc. 2020–14515 Filed 7–6–20; 8:45 am] demonstrating why they would be asset fcc.gov and to [email protected]. BILLING CODE 6560–50–P to the committee. Letters may be written Include in the comments the OMB by candidates themselves or by control number as shown in the supportive individuals, and should be SUPPLEMENTARY INFORMATION below.

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FOR FURTHER INFORMATION CONTACT: For information technology. Pursuant to the Report and Order. Each licensee/ additional information or copies of the Small Business Paperwork Relief Act of permittee of a digital television (DTV) information collection, contact Cathy 2002, Public Law 107–198, see 44 U.S.C. station that provides feeable ancillary or Williams at (202) 418–2918. To view a 3506(c)(4), the FCC seeks specific supplementary services during the copy of this information collection comment on how it might ‘‘further relevant reporting period must file on an request (ICR) submitted to OMB: (1) Go reduce the information collection annual basis FCC Form 2100, Schedule to the web page http://www.reginfo.gov/ burden for small business concerns with G. Specifically, required filers include public/do/PRAMain, (2) look for the fewer than 25 employees.’’ the following (but we generally refer to section of the web page called OMB Control Number: 3060–0906. all such entities herein as a ‘‘DTV ‘‘Currently Under Review,’’ (3) click on Title: Annual DTV Ancillary/ licensee/permittee’’): the downward-pointing arrow in the Supplemental Services Report for DTV A licensee of a digital commercial or ‘‘Select Agency’’ box below the Stations, FCC Form 2100, Schedule G; noncommercial educational (NCE) full ‘‘Currently Under Review’’ heading, (4) 47 CFR 73.624(g). power television (TV) station, low select ‘‘Federal Communications Form Number: FCC Form 2100, power television (LPTV) station, TV Commission’’ from the list of agencies Schedule G (formerly FCC Form 317). translator or Class A TV station. presented in the ‘‘Select Agency’’ box, Type of Review: Revision of a A permittee operating pursuant to (5) click the ‘‘Submit’’ button to the currently approved collection. digital special temporary authority right of the ‘‘Select Agency’’ box, (6) Respondents: Business or other for- (STA) of a commercial or NCE full when the list of FCC ICRs currently profit entities; Not-for-profit power TV station, LPTV station, TV under review appears, look for the Title institutions. translator or Class A TV station. of this ICR and then click on the ICR Number of Respondents and Each DTV licensee/permittee must Reference Number. A copy of the FCC Responses: 7,652 respondents, 15,304 report the feeable ancillary or submission to OMB will be displayed. responses. supplementary services that were Frequency of Response: SUPPLEMENTARY INFORMATION: The provided during the reporting cycle. Recordkeeping requirement, annual Each DTV licensee/permittee is Commission may not conduct or reporting requirement. sponsor a collection of information required to retain the records supporting Obligation to Respond: Required to the calculation of the fees due for three unless it displays a currently valid obtain benefits—Statutory authority for Office of Management and Budget years from the date of remittance of fees. this collection of information is Each NCE licensee/permittee must also (OMB) control number. No person shall contained in Sections 154(i), 303, 336 be subject to any penalty for failing to retain for eight years documentation and 403 of the Communications Act of sufficient to show that its entire comply with a collection of information 1934, as amended. subject to the PRA that does not display bitstream was used ‘‘primarily’’ for NCE Estimated Time per Response: 2–4 broadcast services on a weekly basis. a valid OMB control number. hours. As part of its continuing effort to Total Annual Burden: 45,912 hours. Federal Communications Commission. reduce paperwork burdens, as required Total Annual Cost: $1,147,800. Cecilia Sigmund, by the Paperwork Reduction Act (PRA) Nature and Extent of Confidentiality: Federal Register Liaison Officer, Office of the of 1995 (44 U.S.C. 3501–3520), the FCC There is no need for confidentiality Secretary. invited the general public and other required with this collection of [FR Doc. 2020–14534 Filed 7–6–20; 8:45 am] Federal Agencies to take this information. BILLING CODE 6712–01–P opportunity to comment on the Privacy Impact Assessment: No following information collection. impact(s). Comments are requested concerning: (a) Needs and Uses: In 2018, the Whether the proposed collection of Commission revised section 73.624(g) of FEDERAL DEPOSIT INSURANCE information is necessary for the proper its rules to require only those DTV CORPORATION performance of the functions of the stations that provided ‘‘feeable’’ Notice of Termination of Receivership Commission, including whether the ancillary or supplementary services information shall have practical utility; during the relevant reporting period to The Federal Deposit Insurance (b) the accuracy of the Commission’s submit Form 2100, Schedule G to the Corporation (FDIC or Receiver), as burden estimates; (c) ways to enhance Commission. See Amendment of Receiver for the following insured the quality, utility, and clarity of the Section 73.624(g) of the Commission’s depository institution, was charged with information collected; and (d) ways to Rules Regarding Submission of FCC the duty of winding up the affairs of the minimize the burden of the collection of Form 2100, Schedule G, Used to Report former institution and liquidating all information on the respondents, TV Stations’ Ancillary or related assets. The Receiver has fulfilled including the use of automated Supplementary Services, MB Docket its obligations and made all dividend collection techniques or other forms of Nos. 17–264, 17–105, FCC 18–41, distributions required by law.

NOTICE OF TERMINATION OF RECEIVERSHIP

Termination Fund Receivership name City State date

10284 ...... Shorebank ...... Chicago ...... IL 7/1/2020

The Receiver has further irrevocably that may be required to be executed by discharges, satisfactions, endorsements, authorized and appointed FDIC- the Receiver which FDIC-Corporate, in assignments, and deeds. Effective on the Corporate as its attorney-in-fact to its sole discretion, deems necessary, termination date listed above, the execute and file any and all documents including but not limited to releases, Receivership has been terminated, the

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Receiver has been discharged, and the edited to remove any identifying or ability to perform its statutory Receivership has ceased to exist as a contact information. Public comments obligations. legal entity. may also be viewed electronically or in As discussed below, the Board has Authority: 12 U.S.C. 1819 paper in Room 146, 1709 New York made certain temporary revisions to the Avenue NW, Washington, DC 20006, FR Y–9C information collection. The Federal Deposit Insurance Corporation. between 9:00 a.m. and 5:00 p.m. on Board’s delegated authority requires that Dated at Washington, DC, on July 1, 2020. weekdays. For security reasons, the the Board, after temporarily approving a James P. Sheesley, Board requires that visitors make an collection, publish a notice soliciting Acting Assistant Executive Secretary. appointment to inspect comments. You public comment. Therefore, the Board is [FR Doc. 2020–14543 Filed 7–6–20; 8:45 am] may do so by calling (202) 452–3684. also inviting comment on a proposal to BILLING CODE 6714–01–P Upon arrival, visitors will be required to extend the FR Y–9 family of reports for present valid government-issued photo three years, with these revisions to the identification and to submit to security FR Y–9C. FEDERAL RESERVE SYSTEM screening in order to inspect and photocopy comments. Request for Comment on Information Collection Proposal Proposed Agency Information • Additionally, commenters may Collection Activities; Comment send a copy of their comments to the The Board invites public comment on Request Office of Management and Budget the following information collection, which is being reviewed under AGENCY: Board of Governors of the (OMB) Desk Officer—Alex Federal Reserve System. Goodenough—Office of Information and authority delegated by the OMB under Regulatory Affairs, Office of the PRA. Comments are invited on the ACTION: Temporary approval of following: information collection, request for Management and Budget, New comment. Executive Office Building, Room 10235, a. Whether the proposed collection of 725 17th Street NW, Washington, DC information is necessary for the proper SUMMARY: The Board of Governors of the 20503, or by fax to (202) 395–6974. performance of the Board’s functions, Federal Reserve System (Board) has FOR FURTHER INFORMATION CONTACT: A including whether the information has temporarily revised the Consolidated copy of the Paperwork Reduction Act practical utility; Financial Statements for Holding (PRA) OMB submission, including the b. The accuracy of the Board’s Companies (FR Y–9C; OMB No. 7100– reporting form and instructions, estimate of the burden of the proposed 0128) pursuant to the authority supporting statement, and other information collection, including the delegated to the Board by the Office of documentation will be placed into validity of the methodology and Management and Budget (OMB), per 5 OMB’s public docket files, if approved. assumptions used; CFR part 1320, App.A(1)(a)(3)(A) (OMB These documents will also be made c. Ways to enhance the quality, Regulations on Controlling Paperwork available on the Board’s public website utility, and clarity of the information to Burdens on the Public). Additionally, at https://www.federalreserve.gov/apps/ be collected; the Board invites comment on a reportforms/review.aspx or may be d. Ways to minimize the burden of proposal to extend the FR Y–9 family of requested from the agency clearance information collection on respondents, reports for three years, with these officer, whose name appears below. including through the use of automated revisions to the FR Y–9C. • Federal Reserve Board Clearance collection techniques or other forms of DATES: Comments must be submitted on Officer—Nuha Elmaghrabi—Office of information technology; and or before September 8, 2020. the Chief Data Officer, Board of e. Estimates of capital or startup costs ADDRESSES: You may submit comments, Governors of the Federal Reserve and costs of operation, maintenance, identified by FR Y–9, by any of the System, Washington, DC 20551, (202) and purchase of services to provide following methods: 452–3829. information. • Agency website: https:// At the end of the comment period, the SUPPLEMENTARY INFORMATION: www.federalreserve.gov/. Follow the On June comments and recommendations instructions for submitting comments at 15, 1984, OMB delegated to the Board received will be analyzed to determine https://www.federalreserve.gov/apps/ authority under the PRA to approve and the extent to which the Board should foia/proposedregs.aspx. assign OMB control numbers to modify the proposal. • Email: regs.comments@ collections of information conducted or federalreserve.gov. Include the OMB sponsored by the Board. In exercising Final Approval Under OMB Delegated number in the subject line of the this delegated authority, the Board is Authority of the Temporary Revision message. directed to take every reasonable step to of, and Proposal To Extend for Three • Fax: (202) 452–3819 or (202) 452– solicit comment. In determining Years, With Revision, of the Following 3102. whether to approve a collection of Information Collection • Mail: Ann E. Misback, Secretary, information, the Board will consider all Report title: Financial Statements for Board of Governors of the Federal comments received from the public and Holding Companies. Reserve System, 20th Street and other agencies. Pursuant to its delegated Agency form number: FR Y–9C; FR Y– Constitution Avenue NW, Washington, authority, the Board may temporarily 9LP; FR Y–9SP; FR Y–9ES; FR Y–9CS. DC 20551. approve a revision to a collection of All public comments are available information, without providing OMB control number: 7100–0128. from the Board’s website at https:// opportunity for public comment, if the Frequency: Quarterly, semiannually, www.federalreserve.gov/apps/foia/ Board determines that a change in an and annually. proposedregs.aspx as submitted, unless existing collection must be instituted Respondents: Bank holding modified for technical reasons or to quickly and that public participation in companies (BHCs), savings and loan remove personally identifiable the approval process would defeat the holding companies (SLHCs), securities information at the commenter’s request. purpose of the collection or holding companies (SHCs), and U.S. Accordingly, comments will not be substantially interfere with the Board’s intermediate holding companies (IHCs)

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(collectively, holding companies between on-site inspections. The Board The Board needs to collect (HCs)).1 requires HCs to provide standardized information on the number and Estimated number of respondents: financial statements to fulfill the outstanding balance of PPP loans, as FR Y–9C (non-advanced approaches Board’s statutory obligation to supervise well as the outstanding balance and (AA) HCs community bank leverage these organizations. Financial data from quarterly average of PPP loans pledged ratio (CBLR)) with less than $5 billion these reporting forms are used to detect to the liquidity facility, for use in in total assets—71, FR Y–9C (non AA emerging financial problems, to review supervising holding companies. These HCs CBLR) with $5 billion or more in performance and conduct pre- items also would enable Federal Reserve total assets—35, FR Y–9C (non AA HCs inspection analysis, to monitor and supervision staff to monitor credit and non-CBLR) with less than $5 billion in evaluate capital adequacy, to evaluate liquidity risk, aggregate industry trends, total assets—84, FR Y–9C (non AA HCs holding company mergers and and individual institutions’ use of the non-CBLR) with $5 billion or more in acquisitions, and to analyze a holding PPPLF. Therefore, the Board total assets—154, FR Y–9C (AA HCs)— company’s overall financial condition to temporarily approved the addition of 19, FR Y–9LP—434, FR Y–9SP—3,960, ensure the safety and soundness of its four new data items to collect this FR Y–9ES—83, FR Y–9CS—236. operations. The FR Y–9C report serves information, with the collection of these Estimated average hours per response: as standardized financial statements for items expected to be time-limited. The the consolidated holding company. The Board would collect these items through Reporting FR Y–9LP and FR Y–9SP are parent- the December 31, 2021, as-of date. If the FR Y–9C (non AA HCs CBLR) with company only financial statements Board subsequently determines that less than $5 billion in total assets— submitted primarily based on the HC’s there is a supervisory need for this 29.17, FR Y–9C (non AA HCs CBLR) total consolidated assets. The FR Y–9ES information beyond December 31, 2021, with $5 billion or more in total assets— is a financial statement for HCs that are an extension of these items would be 35.14, FR Y–9C (non AA HCs non- Employee Stock Ownership Plans. The published for comment in a separate CBLR) with less than $5 billion in total Board uses the voluntary FR Y–9CS (a Federal Register notice. assets—41.01, FR Y–9C (non AA HCs free-form supplement) to collect Starting with the June 30, 2020, non-CBLR) with $5 billion or more in additional information deemed to be reporting period, a holding company total assets—46.98, FR Y–9C (AA critical and needed in an expedited will be required to report the total HCs)—48.80, FR Y–9LP—5.27, FR Y– manner. HCs file the FR Y–9C on a number of PPP loans outstanding, the 9SP—5.40, FR Y–9ES—0.50, FR Y– quarterly basis, the FR Y–9LP quarterly, outstanding balance of PPP loans, the 9CS—0.50. the FR Y–9SP semiannually, and the FR outstanding balance of PPP loans Y–9ES annually, as applicable, and the pledged to the Federal Reserve’s Recordkeeping FR Y–9CS on a schedule that is liquidity facility, and the quarterly FR Y–9C—1, FR Y–9LP—1, FR Y– determined when this supplement is average amount of PPP loans pledged to 9SP—0.50, FR Y–9ES—0.50, FR Y– used. the Federal Reserve’s liquidity facility 9CS—0.50. and excluded from average total assets Current Actions in the calculation of the leverage ratio. Estimated annual burden hours: The Board has temporarily revised the These items have been added to Reporting FR Y–9C to collect four new data items Schedule HC–M, as items 25.a, 25.b, FR Y–9C (non AA HCs CBLR) with related to the Paycheck Protection 25.c, and 25.d. Payment (PPP) loans and the Paycheck less than $5 billion in total assets— Section 4013 of Cares Act 8,284, FR Y–9C (non AA HCs CBLR) Protection Program Liquidity Facility 2 Section 4013 of the CARES Act with $5 billion or more in total assets— (PPPLF). suspends the requirements under 4,920, FR Y–9C (non AA HCs non- In addition, the Board temporarily revised the FR Y–9C to collect two new United States generally accepted CBLR) with less than $5 billion in total accounting principles for eligible loan assets—13,779, FR Y–9C (non AA HCs items related to Section 4013 of the CARES Act. Section 4013 of the CARES modifications related to the COVID–19 non-CBLR) with $5 billion or more in pandemic that would otherwise be total assets—28,940, FR Y–9C (AA Act permits holding companies flexibility in modifying loans related to categorized as troubled debt HCs)—3,709, FR Y–9LP—9,149, FR Y– restructurings (TDRs). The CARES Act 9SP—42,768, FR Y–9ES—42, FR Y– the coronavirus disease 2019 (COVID– 19). defines an eligible loan under section 9CS—472. 4013 (section 4013 loan) as a loan Recordkeeping New Data Items Related to the PPPLF modification that is (1) related to Section 1102 of the CARES Act allows FR Y–9C—1,452, FR Y–9LP—1,736, COVID–19, (2) executed on a loan that for banking organizations to make loans FR Y–9SP—3,960, FR Y–9ES—42, FR was not more than 30 days past due as under a program of the Small Business Y–9CS—472. of December 31, 2019, and (3) executed Administration (SBA) in connection between March 1, 2020, and the earlier General description of report: The FR with COVID–19 disruptions to small of (A) 60 days after the date of Y–9 family of reporting forms continues businesses (referred to as PPP loans or termination of the National Emergency to be the primary source of financial PPP covered loans). While the loans are concerning the COVID–19 outbreak or data on holding companies that funded by the banking organizations, (B) December 31, 2020. Section examiners rely on in the intervals they receive a guarantee from the SBA. 4013(d)(2) of the CARES Act provides The Federal Reserve subsequently that federal banking agencies may 1 An SLHC must file one or more of the FR Y– 9 family of reports unless it is: (1) A grandfathered established a liquidity facility to permit collect data about section 4013 loans for unitary SLHC with primarily commercial assets and banking organizations to obtain non- supervisory purposes. thrifts that make up less than five percent of its recourse loans, for which PPP loans are Holding companies accounting for consolidated assets; or (2) a SLHC that primarily pledged to the facility, to provide eligible loans under Section 4013 are holds insurance-related assets and does not otherwise submit financial reports with the SEC additional liquidity. not required to apply ASC Subtopic pursuant to section 13 or 15(d) of the Securities 310–40 to the Section 4013 loans for the Exchange Act of 1934. 2 85 FR 20387 (April 13, 2020). term of the loan modification. In

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addition, HCs do not have to report to perform its statutory duties and to email address of the external auditing Section 4013 loans as TDRs in properly supervise holding companies. firm’s engagement partner, is considered regulatory reports. However, as Additionally, the Board proposes to confidential commercial information provided for under Section 4013, HCs extend the FR Y–9 family of reports for and protected by exemption 4 of the should maintain records of the volume three years, with the revisions to the FR FOIA (5 U.S.C. 552(b)(4)) if the identity of section 4013 loans and the collection Y–9C discussed above, in order to of the engagement partner is treated as of data about such loans may be permit continued accurate reporting of private information by HCs. The Board required for supervisory purposes. related data. has assured respondents that this Consistent with section 4013(d)(2) of Legal authorization and information will be treated as the CARES Act, the Board has added confidentiality: The Board has the confidential since the collection of this two new data items for section 4013 authority to impose the reporting and data item was proposed in 2004. loans to the FR Y–9C, which would be recordkeeping requirements associated Additionally, items on the FR Y–9C, collected quarterly beginning with the with the FR Y–9 family of reports on Schedule HC–C for loans modified June 30, 2020, report date. These BHCs pursuant to section 5 of the Bank under section 4013, data items confidential items would enable Federal Holding Company Act of 1956 (BHC Memorandum items 16.a, ‘‘Number of Reserve supervision staff to monitor Act) (12 U.S.C. 1844); on SLHCs Section 4013 loans outstanding’’ and credit risk, aggregate industry trends, pursuant to section 10(b)(2) and (3) of Memorandum items 16.b, ‘‘Outstanding and individual institutions’ use of the the Home Owners’ Loan Act (12 U.S.C. balance of Section 4013 loans’’ are temporary relief provided by section 1467a(b)(2) and (3)), as amended by considered confidential. While the 4013. These new items, Memorandum sections 369(8) and 604(h)(2) of the Board generally makes institution-level item 16.a, ‘‘Number of Section 4013 Dodd-Frank Wall Street Reform and FR Y–9C report data publicly available, loans outstanding,’’ and Memorandum Consumer Protection Act (Dodd-Frank the Board is collecting section 4013 loan item 16.b, ‘‘Outstanding balance of Act); on U.S. IHCs pursuant to section information as part of condition reports Section 4013 loans,’’ have been added to 5 of the BHC Act (12 U.S.C 1844), as for the impacted HCs and the Board Schedule HC–C, Part I, Loans and well as pursuant to sections 102(a)(1) considers disclosure of these items at Leases. These items will enable the and 165 of the Dodd-Frank Act (12 the HC level would not be in the public 4 Board to monitor individual HCs’ use of U.S.C. 511(a)(1) and 5365); and on interest. Such information is permitted securities holding companies pursuant the temporary relief provided by Section to be collected on a confidential basis, to section 618 of the Dodd-Frank Act (12 5 4013 as well as the volume of loans consistent with 5 U.S.C. 552(b)(8). In U.S.C. 1850a(c)(1)(A)). The obligation to modified in accordance with section addition, holding companies may be submit the FR Y–9 series of reports, and 4013. The Board would collect these reluctant to offer modifications under the recordkeeping requirements set forth items through the December 31, 2021, section 4013 if information on these in the respective instructions to each as-of date. If the Board subsequently modifications made by each holding report, are mandatory. determines that there is a supervisory company is publicly available, as With respect to the FR Y–9C report, analysts, investors, and other users of need for this information beyond Schedule HI’s memoranda data item 7(g) December 31, 2021, an extension of public FR Y–9C report information may ‘‘FDIC deposit insurance assessments,’’ penalize an institution for using the these items would be published for Schedule HC–P’s data item 7(a) comment in a separate Federal Register relief provided by the CARES Act. The ‘‘Representation and warranty reserves Board may disclose section 4013 loan notice. for 1–4 family residential mortgage The Board will collect institution- data on an aggregated basis, consistent loans sold to U.S. government agencies with confidentiality or as otherwise level section 4013 loan information on and government sponsored agencies,’’ a confidential basis. The Board has required by law. and Schedule HC–P’s data item 7(b) Aside from the data items described encouraged financial institutions to ‘‘Representation and warranty reserves above, the remaining data items on the work with their borrowers during the for 1–4 family residential mortgage FR Y–9C report and the FR Y–9SP National Emergency related to COVID– loans sold to other parties’’ are report are generally not accorded 19, including use of the relief under considered confidential commercial and confidential treatment. The data items Section 4013.3 However, public financial information. Such treatment is collected on FR Y–9LP, FR Y–9ES, and disclosure of supervisory information appropriate under exemption 4 of the FR Y–9CS reports are also generally not on Section 4013 loans could have a Freedom of Information Act (FOIA) (5 accorded confidential treatment. As detrimental impact on holding U.S.C. 552(b)(4)) because these data provided in the Board’s Rules Regarding companies offering modifications under items reflect commercial and financial Availability of Information (12 CFR part this provision to borrowers that need information that is both customarily and 261), however, a respondent may relief due to COVID–19. actually treated as private by the request confidential treatment for any The Board has determined that these submitter, and which the Board has data items the respondent believes temporary revisions to the FR Y–9C previously assured submitters will be should be withheld pursuant to a FOIA must be instituted quickly and that treated as confidential. It also appears exemption. The Board will review any public participation in the approval that disclosing these data items may such request to determine if confidential process would defeat the purpose of the reveal confidential examination and treatment is appropriate, and will collection of information, as delaying supervisory information, and in such inform the respondent if the request for the revisions would result in the instances, this information would also confidential treatment has been denied. collection of inaccurate information, be withheld pursuant to exemption 8 of would interfere with the Board’s ability the FOIA (5 U.S.C. 552(b)(8)), which 4 See 12 U.S.C. 1464(v)(2). protects information related to the 5 Exemption 8 of the Freedom of Information Act 3 See ‘‘Interagency Statement on Loan supervision or examination of a (FOIA) specifically exempts from disclosure Modifications and Reporting for Financial regulated financial institution. information ‘‘contained in or related to Institutions Working with Customers Affected by examination, operating, or condition reports the Coronavirus (Revised)’’ (April 7, 2020), For both the FR Y–9C report and the prepared by, on behalf of, or for the use of an available at https://www.occ.gov/news-issuances/ FR Y–9SP report, Schedule HC’s agency responsible for the regulation or supervision news-releases/2020/nr-ia-2020-50a.pdf. memorandum item 2.b., the name and of financial institutions.’’

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To the extent the instructions to the Federal Trade Commission, Office of the submit your paper comment to the FR Y–9C, FR Y–9LP, FR Y–9SP, and FR Secretary, 600 Pennsylvania Avenue Commission by courier or overnight Y–9ES reports each respectively direct NW, Suite CC–5610 (Annex D), service. the financial institution to retain the Washington, DC 20580; or deliver your Because your comment will be placed workpapers and related materials used comment to the following address: on the publicly accessible website at in preparation of each report, such Federal Trade Commission, Office of the https://www.regulations.gov, you are material would only be obtained by the Secretary, Constitution Center, 400 7th solely responsible for making sure that Board as part of the examination or Street SW, 5th Floor, Suite 5610 (Annex your comment does not include any supervision of the financial institution. D), Washington, DC 20024. sensitive or confidential information. In Accordingly, such information is FOR FURTHER INFORMATION CONTACT: particular, your comment should not considered confidential pursuant to Joshua Smith (202–326–3018), Bureau include any sensitive personal exemption 8 of the FOIA (5 U.S.C. of Competition, Federal Trade information, such as your or anyone 552(b)(8)). In addition, the workpapers Commission, 600 Pennsylvania Avenue else’s Social Security number; date of and related materials may also be NW, Washington, DC 20580. birth; driver’s license number or other state identification number, or foreign protected by exemption 4 of the FOIA, SUPPLEMENTARY INFORMATION: Pursuant to the extent such financial information country equivalent; passport number; to Section 6(f) of the Federal Trade financial account number; or credit or is treated as confidential by the Commission Act, 15 U.S.C. 46(f), and respondent (5 U.S.C. 552(b)(4)). debit card number. You are also solely FTC Rule 2.34, 16 CFR 2.34, notice is responsible for making sure your Consultation outside the agency: The hereby given that the above-captioned Federal Reserve consulted with the comment does not include any sensitive consent agreement containing a consent health information, such as medical Office of the Comptroller of the order to cease and desist, having been Currency and the Federal Deposit records or other individually filed with and accepted, subject to final identifiable health information. In Insurance Corporation in the approval, by the Commission, has been development of this proposal. addition, your comment should not placed on the public record for a period include any ‘‘trade secret or any Board of Governors of the Federal Reserve of thirty (30) days. The following System, July 1, 2020. commercial or financial information Analysis of Agreement Containing which . . . is privileged or Michele Taylor Fennell, Consent Orders to Aid Public Comment confidential’’—as provided by Section Assistant Secretary of the Board. describes the terms of the consent 6(f) of the FTC Act, 15 U.S.C. 46(f), and [FR Doc. 2020–14572 Filed 7–6–20; 8:45 am] agreement and the allegations in the FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— BILLING CODE 6210–01–P complaint. An electronic copy of the including in particular competitively full text of the consent agreement sensitive information such as costs, package can be obtained from the FTC sales statistics, inventories, formulas, FEDERAL TRADE COMMISSION website (for June 26, 2020), at this web patterns, devices, manufacturing address: https://www.ftc.gov/news- [File No. 191 0158] processes, or customer names. events/commission-actions. Comments containing material for Eldorado Resorts and Caesars You can file a comment online or on which confidential treatment is Entertainment; Analysis of Agreement paper. For the Commission to consider requested must be filed in paper form, Containing Consent Orders To Aid your comment, we must receive it on or must be clearly labeled ‘‘Confidential,’’ Public Comment before August 6, 2020. Write ‘‘Eldorado and must comply with FTC Rule 4.9(c). and Caesars; File No. 191 0158’’ on your In particular, the written request for AGENCY: Federal Trade Commission. comment. Your comment—including confidential treatment that accompanies ACTION: Proposed consent agreement; your name and your state—will be the comment must include the factual request for comment. placed on the public record of this and legal basis for the request, and must proceeding, including, to the extent identify the specific portions of the SUMMARY: The consent agreement in this practicable, on the https:// comment to be withheld from the public matter settles alleged violations of www.regulations.gov website. record. See FTC Rule 4.9(c). Your federal law prohibiting unfair methods Due to the public health emergency in comment will be kept confidential only of competition. The attached Analysis to response to the COVID–19 outbreak and if the General Counsel grants your Aid Public Comment describes both the the agency’s heightened security request in accordance with the law and allegations in the complaint and the screening, postal mail addressed to the the public interest. Once your comment terms of the consent order—embodied Commission will be subject to delay. We has been posted on the public FTC in the consent agreement—that would strongly encourage you to submit your website—as legally required by FTC settle these allegations. comments online through the https:// Rule 4.9(b)—we cannot redact or DATES: Comments must be received on www.regulations.gov website. remove your comment from the FTC or before August 6, 2020. If you prefer to file your comment on website, unless you submit a ADDRESSES: Interested parties may file paper, write ‘‘Eldorado and Caesars; File confidentiality request that meets the comments online or on paper, by No. 191 0158’’ on your comment and on requirements for such treatment under following the instructions in the the envelope, and mail your comment to FTC Rule 4.9(c), and the General Request for Comment part of the the following address: Federal Trade Counsel grants that request. SUPPLEMENTARY INFORMATION section Commission, Office of the Secretary, Visit the FTC website at http:// below. Please write: ‘‘Eldorado and 600 Pennsylvania Avenue NW, Suite www.ftc.gov to read this Notice and the Caesars; File No. 191 0158’’ on your CC–5610 (Annex D), Washington, DC news release describing this matter. The comment, and file your comment online 20580; or deliver your comment to the FTC Act and other laws that the at https://www.regulations.gov by following address: Federal Trade Commission administers permit the following the instructions on the web- Commission, Office of the Secretary, collection of public comments to based form. If you prefer to file your Constitution Center, 400 7th Street SW, consider and use in this proceeding, as comment on paper, please mail your 5th Floor, Suite 5610 (Annex D), appropriate. The Commission will comment to the following address: Washington, DC 20024. If possible, consider all timely and responsive

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public comments that it receives on or amended, 15 U.S.C. 18, and Section 5 of market, Caesars operates Harrah’s before August 6, 2020. For information the Federal Trade Commission Act, as Kansas City Hotel and Casino in Kansas on the Commission’s privacy policy, amended, 15 U.S.C. 45, by eliminating City, Missouri. Caesars had including routine uses permitted by the meaningful and substantial competition approximately $8.7 billion in revenue in Privacy Act, see https://www.ftc.gov/ between Eldorado and Caesars for 2019. site-information/privacy-policy. casino services in the South Lake Tahoe, Twin River is a publicly traded casino Bossier City-Shreveport, and Kansas entertainment and hospitality services Analysis of Consent Orders To Aid City area markets. The elimination of provider headquartered in Providence, Public Comment this competition would likely have Rhode Island. It operates eight I. Introduction and Background caused significant competitive harm, properties in four states, including the Twin River Casino Hotel in Lincoln, The Federal Trade Commission specifically higher prices and Rhode Island. Twin River’s properties (‘‘Commission’’) has accepted for public diminished quality and service levels in each of these markets. The proposed feature approximately 9,130 slot comment, subject to final approval, an Consent Agreement would remedy the machines, 267 table games, and 1,200 Agreement Containing Consent Orders alleged violations by requiring a hotel rooms. The company had (‘‘Consent Agreement’’) from Eldorado divestiture in the affected markets. The approximately $524 million in revenue Resorts, Inc. (‘‘Eldorado’’) and Caesars divestitures will establish a new in 2019. Entertainment Corporation (‘‘Caesars’’). independent competitor to Eldorado in The purpose of the proposed Consent III. Casino Services in South Lake each relevant area, replacing the Agreement is to remedy the Tahoe, Bossier City-Shreveport and competition that otherwise would be anticompetitive effects that would likely Kansas City lost as a result of the Acquisition. result from Eldorado’s acquisition of Eldorado’s proposed acquisition of Caesars (‘‘the Acquisition’’). Under the II. The Parties Caesars would likely result in terms of the proposed Decision and Eldorado is a publicly traded casino substantial competitive harm in the Order (‘‘Order’’) contained in the entertainment and hospitality services markets for casino services in South Consent Agreement, Eldorado is provider headquartered in Reno, Lake Tahoe, Bossier City-Shreveport required to divest to Twin River Nevada. Founded in 1973, Eldorado and Kansas City. The relevant product Worldwide Holdings, Inc. (‘‘Twin operates 23 casino gaming properties in market in which to assess the River’’): (1) Eldorado’s only casino in 11 states. Eldorado operates casinos competitive effects of the proposed the South Lake Tahoe area, the under several brands, including Acquisition is casino services. The MontBleu Resort Casino and Spa Eldorado, Isle of Capri, and Tropicana. casino services market consists of (‘‘MontBleu’’) in Stateline, Nevada; and In the aggregate, Eldorado’s properties casino-based gaming services (e.g., slots (2) Eldorado’s only casino in the Bossier feature approximately 23,900 slot and table games), as well as other City-Shreveport, Louisiana, area, the machines, 660 table games, and more amenities such as lodging, Eldorado Casino Resort (‘‘Eldorado than 11,300 hotel rooms. In the South entertainment, and food and beverage Shreveport’’). The divestitures must be Lake Tahoe area market, Eldorado services. Casino operators typically completed by the earlier of (i) 12 operates the MontBleu casino in generate the vast majority of their months from the closing of the Stateline, Nevada. In the Bossier City- revenues from gaming. Casino services Acquisition; or (ii) 30 days from the date Shreveport area market, Eldorado differ significantly from other that Twin River receives all regulatory operates the Eldorado Shreveport casino entertainment and leisure activities in a approvals. Additionally, if Eldorado in Shreveport, Louisiana. In the Kansas number of respects. For example, does not consummate its sale of the Isle City area market, Eldorado operates the casinos are highly regulated, with a of Capri casino (‘‘Isle of Capri’’) in Isle of Capri casino in Kansas City, limited number of casinos licensed to Kansas City, Missouri, within 60 days Missouri. Eldorado had approximately operate in any given state and age from the closing of the Acquisition, the $2.5 billion in revenue in 2019. restrictions on who can gamble. proposed Consent Agreement provides Caesars is a publicly traded casino Consistent with prior Commission the Commission with the option (at its entertainment and hospitality services precedent, the evidence here supports a discretion) to require Eldorado to divest provider headquartered in Las Vegas, distinct relevant market consisting of the Isle of Capri casino to a Nevada. It operates 53 properties in 14 casino services. Commission-approved acquirer within states and five countries outside of the Local geographic markets are 12 months. The Isle of Capri sale is United States. Caesars’ properties offer appropriate to assess the competitive independent from the Acquisition. approximately 38,000 slot machines, effects of the proposed Acquisition. The proposed Consent Agreement has 2,700 table games, and more than 36,000 There are three relevant geographic been placed on the public record for 30 hotel rooms. Caesars’ gaming properties markets in which to analyze the days for receipt of comments from operate primarily under the Harrah’s, merger’s effects: (1) The South Lake interested persons. Comments received Caesars, and Horseshoe brand names. In Tahoe area, which approximately during this period will become part of the South Lake Tahoe area, Caesars corresponds to the area in and around the public record. After 30 days, the operates two facilities offering casino the cities of Stateline, Nevada, and Commission will review the comments services: Harrah’s Lake Tahoe Hotel and South Lake Tahoe, California; (2) the received and decide whether it should Casino, and Harveys Lake Tahoe Hotel Bossier City-Shreveport, Louisiana area, withdraw, modify, or make the Consent and Casino, both in Stateline, Nevada. which approximately corresponds to the Agreement final. In the Bossier City-Shreveport area, Bossier City-Shreveport, Louisiana On June 24, 2019, Eldorado agreed to Caesars operates two facilities offering metropolitan statistical area; and (3) the acquire Caesars for approximately $17.3 casino services: Horseshoe Bossier City Kansas City area, which approximately billion. By a vote of 3–1–1 on June 25, Hotel and Casino in Bossier City, corresponds to the Kansas City, 2020, the Commission issued an Louisiana, and Harrah’s Louisiana Missouri metropolitan statistical area. administrative complaint alleging that Downs, a gaming and racetrack facility Absent relief, the Acquisition would the Acquisition, if consummated, would located eight miles east in Shreveport, result in significant increases in violate Section 7 of the Clayton Act, as Louisiana. In the Kansas City area concentration and lead to highly

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concentrated markets in all three Acquisition; or (ii) 30 days from the date effects of the proposed Acquisition in markets, resulting in a presumption of Twin River receives all regulatory the Bossier City-Shreveport area market the enhancement of market power under approvals. Until the completion of each by requiring Eldorado to divest the the Horizontal Merger Guidelines. divestiture, the parties are required to Eldorado Shreveport. This remedy Further, Eldorado and Caesars are close abide by the Order to Hold Separate and would preserve four independent casino and vigorous competitors in the South Maintain Assets, which requires them to operators and result in no change in Lake Tahoe, Bossier City-Shreveport, maintain the viability, marketability, market concentration. and Kansas City area markets. Absent and competitiveness of the divestiture C. Kansas City relief, the Acquisition would assets until the divestitures are substantially lessen the significant head- completed. The proposed Consent In the Kansas City area market, the to-head competition between Eldorado Agreement appoints a Monitor to ensure proposed Consent Agreement provides and Caesars and would likely increase the parties’ compliance with the Order the Commission with the option (at its Eldorado’s ability and incentive to raise to Hold Separate and Maintain Assets, discretion) to require Eldorado to divest prices post-Acquisition in the form of Consent Agreement, and divestiture its Isle of Capri casino to a Commission- hold rates, rake rates, and table game agreements between Eldorado and Twin approved buyer within 12 months if its rules and odds that are less favorable to River following the divestiture. The independent sale of the Isle of Capri customers, and lower player proposed Consent Agreement also fails to consummate within 60 days of reinvestments. The proposed remedies the likely anticompetitive closing the Acquisition. If a divestiture Acquisition also would likely diminish effects in the Kansas City area market in is required, the proposed Consent Eldorado’s incentive to maintain or the event that Eldorado’s independent Agreement remedies the likely improve the quality of services and sale of the Isle of Capri casino does not anticompetitive effects of the amenities to the detriment of casino close within 60 days from the closing of Acquisition by requiring Eldorado to customers in each of these markets. the Acquisition. In the event the Isle of divest the Isle of Capri. The proposed New entry or expansion is unlikely to Capri sale does not timely close as Consent Agreement would preserve four deter or counteract the likely required, the proposed Consent independent casino operators and result anticompetitive effects of the Agreement provides the Commission in no change in market concentration. Acquisition in the South Lake Tahoe, with the option (at its discretion) to The purpose of this analysis is to Bossier City-Shreveport, and Kansas require Eldorado to divest the Isle of facilitate public comment on the City area markets. The affected markets Capri casino to a Commission-approved proposed Consent Agreement to aid the are insulated from new entry or acquirer within 12 months. Although Commission in determining whether it expansion by significant regulatory these divestiture deadlines are longer should make the proposed Consent barriers, including limitations on the than typically ordered by the Agreement final. This analysis is not an number of casino licenses available and Commission, they are appropriate in official interpretation of the proposed the ability to expand existing gaming this matter to accommodate the lengthy Consent Agreement and does not operations. In the South Lake Tahoe state regulatory approval process, which modify its terms in any way. area market, entry or expansion is may be subject to continued disruption By direction of the Commission, unlikely to occur in a timely manner from the COVID–19 pandemic. Commissioner Chopra dissenting, because of, among other things, the time Additionally, the proposed Consent Commissioner Slaughter not participating. and cost associated with acquiring the Agreement requires the parties to April J. Tabor, necessary state, county, and city provide transitional services to the Secretary. approvals. In the Bossier City- approved acquirer for up to 12 months Dissenting Statement of Commissioner Shreveport area market, Louisiana law after the divestiture, as needed, to assist Rohit Chopra Summary limits the number of casino licenses and the acquirer with the transfer and it has already issued all available operation of the divested assets. Finally, • The Commission should not agree licenses. Louisiana also has statutory the proposed Consent Agreement to merger settlements unless restrictions that make significant contains standard terms regarding the divestitures are completed promptly to expansion by current market acquirer’s access to employees, a qualified buyer ready and willing to participants unlikely absent legislative protection of material confidential compete on day one. • action. Similarly, in the Kansas City information, and compliance reporting It is risky and makes little sense to area market, Missouri and Kansas law requirements, among other things, to propose a complex settlement with a limit the total number of casino licenses ensure the viability of the divested prolonged divestiture period and available and both states have already business. unorthodox terms to justify a merger issued all available licenses. Expansion that has no meaningful benefits, in Missouri is unlikely and only limited A. South Lake Tahoe particularly given the financial expansion in Kansas is possible. Entry The proposed Consent Agreement uncertainties stemming from the or repositioning would be unlikely to be remedies the likely anticompetitive COVID–19 crisis. sufficient to deter or counteract the effects of the proposed Acquisition in • I am concerned that the anticompetitive effects of the the South Lake Tahoe area market by Commission’s standard process for Acquisition. requiring the divestiture of Eldorado’s vetting divestiture buyers minimizes or MontBleu. This remedy would preserve ignores major financial red flags. We IV. The Proposed Consent Agreement the status quo in the South Lake Tahoe should revamp our approach. The proposed Consent Agreement area casino services market, maintaining Caesars Entertainment (NASDAQ: remedies the likely anticompetitive three independent casino operators and CZR) is selling itself to one of its smaller effects in the South Lake Tahoe and resulting in no change in market competitors, Eldorado Resorts Bossier City-Shreveport area markets by concentration. (NASDAQ: ERI). The transaction has no requiring divestitures of the MontBleu noteworthy benefits to customers, and Eldorado Shreveport casinos to B. Bossier City-Shreveport workers, suppliers, or competition. If Twin River by the earlier of (i) 12 The proposed Consent Agreement anything, the transaction is risky for months from the closing of the remedies the likely anticompetitive everyone involved.

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The enormous amount of debt settlement, Eldorado is required to its largest shareholder. Its stake is financing could materially increase the divest one property in Nevada and roughly equivalent to the maximum likelihood of financial distress of the another in Louisiana to Twin River amount allowable under state law.5 combined casino conglomerate, and Worldwide Holdings (NYSE: TRWH)— Another hedge fund, HG Vora, has also rating agencies have already started to but after a prolonged period of time.3 emerged as a major holder of Twin downgrade Eldorado’s debt.1 Given the Allowing a lengthy divestiture only River.6 Standard General and similar major financial uncertainties looming compounds the problems with this funds often seek to accumulate board over the gaming industry stemming settlement, as it necessitates the seats to implement their desired from the pandemic, as well as the addition of other risky settlement investment strategy. Indeed, just a few industry’s past experiences with provisions. months ago, Twin River’s longtime leveraged buyouts, the proposed To mitigate the anticompetitive harm chairman ‘‘reluctantly’’ stepped down transaction might make conditions even from the prolonged divestiture and was replaced by Standard General’s more fragile and precarious. schedule, the FTC’s proposed settlement managing partner, Soohyung Kim.7 The agreement is subject to review by sets up a complex arrangement where By approving Twin River as the state gaming regulators and the Federal some casinos will be operated divestiture buyer, I am concerned that Trade Commission. In comparison to separately by Commission-appointed the Commission is relying on Twin state regulators, who must weigh a casino property managers until a buyer River’s past track record, rather than number of public interest factors, the is ready to take over the assets. I do not analyzing how changes in ownership Federal Trade Commission’s mandate is believe that the Commission should be and control of the company will impact more specific: To determine whether the in the business of appointing casino their future business strategy. transaction violates U.S. antitrust laws. property managers here.4 Second, buyers of divested assets Based on the Commission’s The Commission will also appoint a need to prioritize competing on day one, investigation, I agree that the transaction monitor. It is particularly unclear how but they cannot if other high-priority is illegal and I support the complaint. the Commission and the appointed mergers and acquisitions distract them. However, I have serious reservations monitor can remove or discipline the In this matter, Twin River is in the about the terms of the settlement. As a casino property managers. In addition, midst of a string of other takeovers. policy matter, I disagree that the the casino property managers will In 2019, it completed an acquisition Commission should enter into risky, operate under a similar compensation of Dover Downs Hotel and Casino in complicated settlements with delayed and bonus plan as provided by the prior Delaware,8 and then in January of this divestitures—like the resolution owner, which could easily lead to year, Twin River acquired three casinos proposed here. anticompetitive distortions. The in Colorado.9 Several other acquisitions anticompetitive harms could grow if are pending: in the last twelve months, The Proposed Buyer Will Not Twin River is rejected as a suitable it has inked deals to purchase casinos in Immediately Restore Competitive buyer by state regulators. Missouri and Mississippi.10 Outside of Intensity There may be rare circumstances To remedy an illegal transaction, the where unusual settlement terms are 5 In a recent Schedule 13D securities filing, FTC should only agree to settlements warranted, but this isn’t one of them. Standard General revealed that it was managing its when divestitures will quickly restore The proposed remedy is also a gamble holdings of Twin River, given Twin River’s share on several other fronts. repurchase plan that could lead to Standard General the competitive intensity killed off from violating the Rhode Island casino ownership cap of a merger. It is not enough to have some First, the Commission’s due diligence 39%. See Twin River Worldwide Holdings, Inc., of the competition restored; it must be on Twin River did not adequately Amendment No. 6 to Schedule 13D at 4 (Feb. 20, analyze the role of new investors 2020). fully restored. A new competitor should 6 be able to step in on day one to exerting enormous control. The FTC Recent securities filings reveal significant must always consider the incentives and ownership of Twin River by HG Vora Capital compete. Management. See HG Vora Capital Management, For example, in 2015, the FTC plans for those in control of a LLC, Form 13F Information Table (Form 13F) (Aug. prevailed in its challenge of the merger divestiture buyer. Sometimes, new 8, 2019). Standard General and HG Vora are of Sysco and US Foods, the nation’s two investors can help a stagnant company currently on the same side of a major battle in change strategic direction. But too often, another public company. See Svea Herbst-Bayliss, largest food distributors, when EXCLUSIVE-Hedge fund HG Vora wants Tegna to divestitures could not cure the harmful new investors find ways to buy, strip, consider a sale or merger—sources, Reuters (Jan. 21, merger on ‘‘day one.’’ The companies and flip, rather than create a strong, 2020), https://www.reuters.com/article/tegna- long-term competitor. This is hgvora/exclusive-hedge-fund-hg-vora-wants-tegna- proposed to divest a lengthy list of US to-consider-a-sale-or-merger-sources- Foods’ assets to an entity controlled by particularly true for certain private equity and hedge fund investors, so idUKL1N29Q0KT. the Blackstone Group. The FTC argued 7 Ted Nesi, John Taylor out at Twin River, this was insufficient, and the court careful due diligence is critical. 12WPRI.com (Dec. 9, 2019), https://www.wpri.com/ In 2019, a Wall Street hedge fund, agreed that the new competitor could business-news/john-taylor-out-at-twin-river/. Standard General, accumulated a major 8 Press Release, Twin River Worldwide Holdings, not replicate the same level of ownership stake in Twin River. Inc., Dover Downs Stockholders Approve Merger competitive intensity of US Foods.2 Standard General now has significant with Twin River; Merger Set to Close on March 28, The Commission’s proposed remedy 2019 (Mar. 26, 2019), https:// will definitely not cure this harmful control over the company and is, by far, investors.twinriverwwholdings.com/news/news- casino merger on day one. Under the details/2019/Dover-Downs-Stockholders-Approve- 33 The divestitures must be complete by the Merger-with-Twin-River-Merger-Set-to-Close-on- terms of the Commission’s proposed earlier of 12 months from the closing of the merger March-28-2019/default.aspx. or within 30 days of state regulatory approval. In 9 Press Release, Twin River Worldwide Holdings, 1 See e.g., Moody’s downgrades Eldorado Resorts theory, the divestitures may be completed before 12 Inc., Twin River Worldwide Holdings Completes CFR to B2, rates new debt for Caesars acquisition; months. However, past experience suggests that the Acquisition of Three Colorado Casinos (Jan. 24, outlook, Moody’s Investor Service (June 17, 2020), approval process requires significant due diligence 2020), https://investors.twinriverwwholdings.com/ https://www.moodys.com/ngrades-Eldorado- over an extended period of time. news/news-details/2020/Twin-River-Worldwide- Resorts-CFR-to-B2-rates-new-debt-PR_ 4 If the state gaming regulators had already Holdings-Completes-Acquisition-of-Three- 426702?cid=7QFRKQSZE021. approved the transaction (as well as the Colorado-Casinos/default.aspx. 2 Fed. Trade Comm’n v. Sysco Corp., 113 F. Supp. corresponding divestitures) and selected casino 10 Press Release, Twin River Worldwide 3d 1, 73 (D.D.C. 2015). property managers, this would raise fewer concerns. Holdings, Inc., Twin River Worldwide Holdings

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this settlement, it has also struck a deal buyer that has no guarantee of obtaining comment to the following address: to purchase Bally’s, its first foray into a license? Federal Trade Commission, Office of the the large Atlantic City market.11 These I am concerned that the Commission Secretary, 600 Pennsylvania Avenue acquisitions will require significant is rolling the dice with this complex NW, Suite CC–5610 (Annex D), management attention, and I did not settlement that will clearly not lead to Washington, DC 20580; or deliver your find any compelling evidence that Twin an immediate restoration of lost comment to the following address: River will prioritize the divested assets competition. It is also clear that we must Federal Trade Commission, Office of the to fully restore competitive intensity in revamp our approach when it comes to Secretary, Constitution Center, 400 7th the markets that the Commission vetting proposed divestiture buyers, Street SW, 5th Floor, Suite 5610 (Annex believes would suffer from killed-off particularly when a new financial D), Washington, DC 20024. competition. investor is in charge in the boardroom. FOR FURTHER INFORMATION CONTACT: Finally, the Commission should avoid Our state partners will obviously need Ashley Masters (202–326–2291), Bureau acting without the benefit of a full to scrutinize the financial aspects of the of Competition, Federal Trade review by the state gaming regulators. proposed transaction between Caesars Commission, 600 Pennsylvania Avenue State regulatory agencies have unique and Eldorado, given the harms inflicted NW, Washington, DC 20580. insights and expertise into the on the public and regional economies SUPPLEMENTARY INFORMATION: Pursuant industries they regulate; their findings from past leveraged buyouts—and to Section 6(f) of the Federal Trade resulting bankruptcies—in the inform the issues the Commission takes 12 Commission Act, 15 U.S.C. 46(f), and into consideration, and not just relating industry. They will also need to FTC Rule 2.34, 16 CFR 2.34, notice is to the appointment of casino managers. carefully assess whether the restoration hereby given that the above-captioned Some states have a specific mandate to of competition will come too late, and consent agreement containing a consent look at the ownership and financial whether Twin River can guarantee that order to cease and desist, having been conditions of the transacting firms, and it will actually accomplish this goal. filed with and accepted, subject to final we would benefit from that expertise. The stakes are high right now. For these approval, by the Commission, has been Their analysis is particularly important reasons, I dissent. placed on the public record for a period during this period of uncertainty, as the [FR Doc. 2020–14582 Filed 7–6–20; 8:45 am] of thirty (30) days. The following industry is roiling from closures due to BILLING CODE 6750–01–P Analysis of Agreement Containing the current COVID–19 pandemic. It is Consent Orders to Aid Public Comment important that we consider all of the describes the terms of the consent information and work across FEDERAL TRADE COMMISSION agreement and the allegations in the government bodies to protect [File No. 201–0074] complaint. An electronic copy of the competition. While the Commission full text of the consent agreement does work with some of these Tri Star Energy, LLC; Analysis of package can be obtained from the FTC authorities, I am not convinced that Consent Orders To Aid Public website (for June 24, 2020), at this web acting before state regulators have Comment address: https://www.ftc.gov/news- completed their analysis is the right events/commission-actions. AGENCY: Federal Trade Commission. approach. You can file a comment online or on ACTION: Proposed consent agreement; paper. For the Commission to consider Conclusion request for comment. your comment, we must receive it on or before August 6, 2020. Write ‘‘Tri Star The proposed resolution in this SUMMARY: The consent agreement in this transaction offers a unique window into matter settles alleged violations of Energy, LLC; File No. 201–0074’’ on the assumptions and philosophy of the federal law prohibiting unfair methods your comment. Your comment— Federal Trade Commission. The merger of competition. The attached Analysis to including your name and your state— is clearly anticompetitive in the markets Aid Public Comment describes both the will be placed on the public record of where the Commission alleged a allegations in the complaint and the this proceeding, including, to the extent violation, and offers no meaningful terms of the consent order—embodied practicable, on the https:// benefits to the public. Since the in the consent agreement—that would www.regulations.gov website. Due to the public health emergency in Commission would not need to go to settle these allegations. trial to block the transaction because the response to the COVID–19 outbreak and DATES: Comments must be received on the agency’s heightened security state regulators have yet to act, there is or before August 6, 2020. no immediate concern about limiting screening, postal mail addressed to the ADDRESSES: Interested parties may file FTC resources or weighing the litigation Commission will be subject to delay. We comments online or on paper, by risk. Given these facts, why would the strongly encourage you to submit your following the instructions in the Commission put the public at risk with comments online through the https:// Request for Comment part of the delayed divestitures to a questionable www.regulations.gov website. SUPPLEMENTARY INFORMATION section If you prefer to file your comment on below. Please write: ‘‘Tri Star Energy, paper, write ‘‘Tri Star Energy, LLC; File Signs Definitive Agreement To Acquire Two LLC; File No. 201–0074’’ on your Casinos From Eldorado Resorts (July 11, 2019), No. 201–0074’’ on your comment and https://investors.twinriverwwholdings.com/news/ comment, and file your comment online on the envelope, and mail your news-details/2019/Twin-River-Worldwide-Holdings- at https://www.regulations.gov by comment to the following address: Signs-Definitive-Agreement-To-Acquire-Two- following the instructions on the web- Federal Trade Commission, Office of the Casinos-From-Eldorado-Resorts/default.aspx. based form. If you prefer to file your 11 Press Release, Twin River Worldwide Secretary, 600 Pennsylvania Avenue Holdings, Inc., Twin River Worldwide Holdings to comment on paper, please mail your NW, Suite CC–5610 (Annex D), Acquire Three Casinos from Eldorado and Caesars Washington, DC 20580; or deliver your (Apr. 24, 2020), https:// 12 See, e.g., Sujeet Indap, What happens in comment to the following address: investors.twinriverwwholdings.com/news/news- Vegas...the messy bankruptcy of Caesars details/2020/Twin-River-Worldwide-Holdings-to- Entertainment, THE FIN. TIMES (Sept. 16, 2017), Federal Trade Commission, Office of the Acquire-Three-Casinos-from-Eldorado-and-Caesars/ https://www.ft.com/content/a0ed27c6-a2d4-11e7- Secretary, Constitution Center, 400 7th default.aspx. b797-b61809486fe2. Street SW, 5th Floor, Suite 5610 (Annex

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D), Washington, DC 20024. If possible, consider all timely and responsive Tri Star also supplies fuel to a network submit your paper comment to the public comments that it receives on or of 285 dealer locations. Commission by courier or overnight before August 6, 2020. For information Respondent Mr. Ronald L. service. on the Commission’s privacy policy, Hollingsworth, a resident of the state of Because your comment will be placed including routine uses permitted by the Tennessee, controls both Hollingsworth on the publicly accessible website at Privacy Act, see https://www.ftc.gov/ Oil Company, Inc. and C & H Properties, https://www.regulations.gov, you are site-information/privacy-policy. entities operating in Tennessee. solely responsible for making sure that Hollingsworth operates a network of 54 your comment does not include any Analysis of Consent Orders To Aid convenience stores under the Sudden sensitive or confidential information. In Public Comment Service name with attached retail fuel particular, your comment should not I. Introduction outlets throughout middle Tennessee. include any sensitive personal Hollingsworth provides a variety of information, such as your or anyone The Federal Trade Commission third-party branded and unbranded else’s Social Security number; date of (‘‘Commission’’) has accepted for public fuels at its Sudden Service outlets and birth; driver’s license number or other comment, subject to final approval, an to 172 wholesale fuel locations. state identification number, or foreign Agreement Containing Consent Orders III. The Proposed Acquisition country equivalent; passport number; (‘‘Consent Agreement’’) from Tri Star financial account number; or credit or Energy, LLC (‘‘Tri Star’’) and On March 6, 2020, Tri Star entered debit card number. You are also solely Hollingsworth Oil Company, Inc., C & H into an agreement to acquire certain responsible for making sure your Properties, and Ronald L. Hollingsworth retail fuel outlets and other interests, comment does not include any sensitive (‘‘Hollingsworth’’ and collectively, the from Hollingsworth and related entities health information, such as medical ‘‘Respondents’’). The Consent (the ‘‘Acquisition’’). The Acquisition records or other individually Agreement is designed to remedy the would expand Tri Star’s presence identifiable health information. In anticompetitive effects that likely would throughout middle Tennessee. addition, your comment should not result from Tri Star’s proposed The Commission’s Complaint alleges include any ‘‘trade secret or any acquisition of retail fuel assets from that the Acquisition, if consummated, commercial or financial information Hollingsworth. would violate Section 7 of the Clayton which . . . is privileged or Under the terms of the proposed Act, as amended, 15 U.S.C. 18, and that confidential’’—as provided by Section Consent Agreement, Tri Star must divest the Acquisition agreement constitutes a 6(f) of the FTC Act, 15 U.S.C. 46(f), and to the upfront buyer, Cox Oil Company, violation of Section 5 of the Federal FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— Inc. (‘‘Cox’’), retail fuel assets in two Trade Commission Act, as amended, 15 including in particular competitively local markets in Tennessee. Tri Star U.S.C. 45, by substantially lessening sensitive information such as costs, must complete the divestiture within 10 competition for the retail sale of sales statistics, inventories, formulas, days after the closing of Tri Star’s gasoline and the retail sale of diesel in patterns, devices, manufacturing acquisition of Hollingsworth. The each of two local markets in Tennessee. processes, or customer names. Commission and Respondents have IV. The Retail Sales of Gasoline and Comments containing material for agreed to an Order to Maintain Assets Diesel which confidential treatment is that requires Respondents to operate requested must be filed in paper form, and maintain each divestiture outlet in The Commission’s Complaint alleges must be clearly labeled ‘‘Confidential,’’ the normal course of business through that the relevant product markets in and must comply with FTC Rule 4.9(c). the date Cox acquires the outlet. which to analyze the Acquisition are the In particular, the written request for retail sale of gasoline and the retail sale confidential treatment that accompanies The Commission has placed the of diesel fuel. Consumers require the comment must include the factual proposed Consent Agreement on the gasoline for their gasoline-powered and legal basis for the request, and must public record for 30 days to solicit vehicles and can purchase gasoline only identify the specific portions of the comments from interested persons. at retail fuel outlets. Likewise, comment to be withheld from the public Comments received during this period consumers require diesel for their record. See FTC Rule 4.9(c). Your will become part of the public record. diesel-powered vehicles and can comment will be kept confidential only After 30 days, the Commission will purchase diesel only at retail fuel if the General Counsel grants your again review the proposed Consent outlets. The retail sale of gasoline and request in accordance with the law and Agreement and the comments received, the retail sale of diesel fuel constitute the public interest. Once your comment and will decide whether it should separate relevant markets because the has been posted on the public FTC withdraw from the Consent Agreement, two are not interchangeable—vehicles website—as legally required by FTC modify it, or make it final. that run on gasoline cannot run on Rule 4.9(b)—we cannot redact or II. The Respondents diesel and vehicles that run on diesel remove your comment from the FTC cannot run on gasoline. website, unless you submit a Respondent Tri Star, a company The Commission’s Complaint alleges confidentiality request that meets the headquartered in Nashville, Tennessee, the relevant geographic markets in requirements for such treatment under owns and operates convenience stores which to assess the competitive effects FTC Rule 4.9(c), and the General and retail fuel outlets throughout of the Acquisition are two local markets Counsel grants that request. Tennessee, Alabama, Georgia, and in and around Whites Creek, Tennessee, Visit the FTC website at http:// Kentucky. Tri Star operates 89 and Greenbrier, Tennessee. www.ftc.gov to read this Notice and the convenience stores with attached retail The geographic markets for retail news release describing this matter. The fuel outlets, including 82 in Tennessee. gasoline and retail diesel are highly FTC Act and other laws that the Tri Star’s convenience stores operate localized, ranging up to a few miles, Commission administers permit the under the Twice Daily, Hightail, and t- depending on local circumstances. Each collection of public comments to Fuel names, and its retail fuel outlets relevant market is distinct and fact- consider and use in this proceeding, as sell under a variety of third-party dependent, reflecting a number of appropriate. The Commission will branded and unbranded fuel banners. considerations, including commuting

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patterns, traffic flows, and outlet likely raise the same competitive response to the notice. This notice characteristics. Consumers typically concerns and may fall below the HSR solicits comments on a new collection choose between nearby retail fuel Act premerger notification thresholds. of information to collect entitled outlets with similar characteristics along The proposed Consent Agreement ‘‘Generic Clearance for Data to Support their planned routes. The geographic contains additional provisions designed Cross-Center Collaboration for Social markets for the retail sale of diesel are to ensure the effectiveness of the Behavioral Sciences Associated with likely similar to the corresponding proposed relief. For example, Disease Prevention, Treatment, and the geographic markets for retail gasoline as Respondents have agreed to an Order to Safety, Efficacy, and Usage of FDA many diesel consumers exhibit the same Maintain Assets that will issue at the Regulated Products.’’ preferences and behaviors as gasoline time the proposed Consent Agreement is DATES: Submit either electronic or consumers. accepted for public comment. The Order written comments on the collection of The Acquisition would eliminate to Maintain Assets requires information by September 8, 2020. competition in these local markets, Respondents to operate and maintain ADDRESSES: You may submit comments resulting in a merger to monopoly in each divestiture outlet in the normal each market for the retail sale of as follows. Please note that late, course of business, through the date the untimely filed comments will not be gasoline and the retail sale of diesel Respondents complete the divestiture. fuel. Retail fuel outlets compete on considered. Electronic comments must The Commission may appoint an be submitted on or before September 8, price, store format, product offerings, independent third party as a Monitor to and location, and pay close attention to 2020. The https://www.regulations.gov oversee the Respondents’ compliance electronic filing system will accept competitors in close proximity, on with the requirements of the proposed similar traffic flows, and with similar comments until 11:59 p.m. Eastern Time Consent Agreement. at the end of September 8, 2020. store characteristics. The combined The purpose of this analysis is to entity would be able to raise prices Comments received by mail/hand facilitate public comment on the delivery/courier (for written/paper unilaterally in the two local markets. proposed Consent agreement, and the Absent the Acquisition, Tri Star and submissions) will be considered timely Commission does not intend this if they are postmarked or the delivery Hollingsworth would continue to analysis to constitute an official compete head to head in these local service acceptance receipt is on or interpretation of the proposed Consent before that date. markets. Agreement or to modify its terms in any Entry into each relevant market would way. Electronic Submissions not be timely, likely, or sufficient to deter or counteract the anticompetitive By direction of the Commission, Submit electronic comments in the effects arising from the Acquisition. Commissioner Slaughter not participating. following way: • Significant entry barriers include the April J. Tabor, Federal eRulemaking Portal: availability of attractive real estate, the Secretary. https://www.regulations.gov. Follow the time and cost associated with [FR Doc. 2020–14508 Filed 7–6–20; 8:45 am] instructions for submitting comments. constructing a new retail fuel outlet, and BILLING CODE 6750–01–P Comments submitted electronically, the time associated with obtaining including attachments, to https:// necessary permits and approvals. www.regulations.gov will be posted to the docket unchanged. Because your V. The Proposed Consent Agreement DEPARTMENT OF HEALTH AND HUMAN SERVICES comment will be made public, you are The proposed Consent Agreement solely responsible for ensuring that your would remedy the Acquisition’s likely Food and Drug Administration comment does not include any anticompetitive effects by requiring Tri confidential information that you or a [Docket No. FDA–2020–N–1411] Star to divest certain Tri Star and third party may not wish to be posted, Hollingsworth retail fuel assets to Cox Agency Information Collection such as medical information, your or in each local market. Activities; Proposed Collection; anyone else’s Social Security number, or The proposed Consent Agreement Comment Request; Generic Clearance confidential business information, such requires that the divestiture be for Data to Support Cross-Center as a manufacturing process. Please note completed no later than 10 days after Collaboration for Social Behavioral that if you include your name, contact Tri Star consummates the Acquisition. Sciences Associated With Disease information, or other information that The proposed Consent Agreement Prevention, Treatment, and the Safety, identifies you in the body of your further requires Tri Star and Efficacy, and Usage of Food and Drug comments, that information will be Hollingsworth to maintain the economic Administration Regulated Products posted on https://www.regulations.gov. viability, marketability, and • If you want to submit a comment competitiveness of each divestiture AGENCY: Food and Drug Administration, with confidential information that you asset until the divestiture to Cox is HHS. do not wish to be made available to the complete. For up to twelve months ACTION: Notice. public, submit the comment as a following the divestiture, Tri Star and written/paper submission and in the Hollingsworth must make available SUMMARY: The Food and Drug manner detailed (see ‘‘Written/Paper transitional services, as needed, to assist Administration (FDA or Agency) is Submissions’’ and ‘‘Instructions’’). Cox with the divestiture assets. announcing an opportunity for public In addition to requiring outlet comment on the proposed collection of Written/Paper Submissions divestitures, the proposed Consent certain information by the Agency. Submit written/paper submissions as Agreement also requires Respondents to Under the Paperwork Reduction Act of follows: provide the Commission notice before 1995 (PRA), Federal Agencies are • Mail/Hand Delivery/Courier (for re-acquiring the divested outlets for ten required to publish notice in the written/paper submissions): Dockets years. The prior notice provision is Federal Register concerning each Management Staff (HFA–305), Food and necessary because an acquisition of proposed collection of information and Drug Administration, 5630 Fishers either or both divested assets would to allow 60 days for public comment in Lane, Rm. 1061, Rockville, MD 20852.

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• For written/paper comments heading of this document, into the various issues and outcomes associated submitted to the Dockets Management ‘‘Search’’ box and follow the prompts with disease prevention, treatment, and Staff, FDA will post your comment, as and/or go to the Dockets Management the safety and efficacy off all FDA- well as any attachments, except for Staff, 5630 Fishers Lane, Rm. 1061, regulated products. These studies may information submitted, marked and Rockville, MD 20852, 240–402–7500. consist of small groups, focus groups, identified, as confidential, if submitted FOR FURTHER INFORMATION CONTACT: Ila individual indepth interviews, and as detailed in ‘‘Instructions.’’ S. Mizrachi, Office of Operations, Food surveys relating to the evaluation of Instructions: All submissions received and Drug Administration, Three White disease prevention and treatment and must include the Docket No. FDA– Flint North, 10A–12M, 11601 the safety, efficacy, and usage of FDA- 2020–N–1411 for ‘‘Agency Information Landsdown St., North Bethesda, MD regulated products and communication Collection Activities; Proposed 20852, 301–796–7726, PRAStaff@ messages and strategies, and other Collection; Comment Request; Generic fda.hhs.gov. materials directed to consumers, Clearance for Data to Support Cross- patients, caregivers, and public health SUPPLEMENTARY INFORMATION: Under the Center Collaboration for Social professionals (e.g., evaluate the PRA (44 U.S.C. 3501–3521), Federal Behavioral Sciences Associated with effectiveness of communication Agencies must obtain approval from the Disease Prevention, Treatment and the messages, educational materials, and Office of Management and Budget Safety, Efficacy, and Usage of FDA interventions directed toward (OMB) for each collection of Regulated Products.’’ Received promoting and protecting human and information they conduct or sponsor. comments, those filed in a timely animal health). ‘‘Collection of information’’ is defined manner (see ADDRESSES), will be placed Among the general provisions of the in 44 U.S.C. 3502(3) and 5 CFR in the docket and, except for those Federal Food, Drug, and Cosmetic Act 1320.3(c) and includes Agency requests submitted as ‘‘Confidential (FD&C Act), FDA is charged with or requirements that members of the Submissions,’’ publicly viewable at promoting the public health through public submit reports, keep records, or https://www.regulations.gov or at the regulatory oversight as well as clinical provide information to a third party. Dockets Management Staff between 9 research. Specifically, section 1003 of Section 3506(c)(2)(A) of the PRA (44 a.m. and 4 p.m., Monday through the FD&C Act (21 U.S.C. 393(d)(2)(C) U.S.C. 3506(c)(2)(A)) requires Federal Friday, 240–402–7500. and (D)) provides that the Commissioner Agencies to provide a 60-day notice in • Confidential Submissions—To of Food and Drugs shall be responsible the Federal Register concerning each submit a comment with confidential for research. Accordingly, FDA is proposed collection of information information that you do not wish to be seeking to conduct qualitative and before submitting the collection to OMB made publicly available, submit your quantitative research studies. These for approval. To comply with this comments only as a written/paper studies may consist of small groups, requirement, FDA is publishing notice submission. You should submit two focus groups, individual in-depth of the proposed collection of copies total. One copy will include the interviews, and surveys relating to the information set forth in this document. information you claim to be confidential evaluation of disease prevention and With respect to the following with a heading or cover note that states treatment and the safety, efficacy, and collection of information, FDA invites ‘‘THIS DOCUMENT CONTAINS usage of FDA-regulated products and comments on these topics: (1) Whether CONFIDENTIAL INFORMATION.’’ The communication messages and strategies, the proposed collection of information Agency will review this copy, including and other materials directed to is necessary for the proper performance the claimed confidential information, in consumers, patients, caregivers, and of FDA’s functions, including whether its consideration of comments. The public health professionals (e.g., the information will have practical second copy, which will have the evaluate the effectiveness of utility; (2) the accuracy of FDA’s claimed confidential information communication messages, educational estimate of the burden of the proposed redacted/blacked out, will be available materials, and interventions directed collection of information, including the for public viewing and posted on toward promoting and protecting validity of the methodology and https://www.regulations.gov. Submit human and animal health). assumptions used; (3) ways to enhance both copies to the Dockets Management The information collection is the quality, utility, and clarity of the Staff. If you do not wish your name and intended to support research conducted information to be collected; and (4) contact information to be made publicly by, or on behalf of, FDA. Understanding ways to minimize the burden of the available, you can provide this consumers, patients, caregivers, information on the cover sheet and not collection of information on academic/scientific experts, and public in the body of your comments and you respondents, including through the use health professionals’ perceptions and must identify this information as of automated collection techniques, behaviors plays an important role in ‘‘confidential.’’ Any information marked when appropriate, and other forms of improving FDA’s decision-making as ‘‘confidential’’ will not be disclosed information technology. processes and communications except in accordance with 21 CFR 10.20 Generic Clearance for Data To Support impacting various stakeholders. To and other applicable disclosure law. For Cross-Center Collaboration for Social better understand consumers, patient, more information about FDA’s posting Behavioral Sciences Associated With caregivers, academic/scientific experts, of comments to public dockets, see 80 Disease Prevention, Treatment and the and public health professionals’ FR 56469, September 18, 2015, or access Safety, Efficacy, and Usage of FDA perceptions and behaviors regarding the information at: https:// Regulated Products various issues and outcomes associated www.govinfo.gov/content/pkg/FR-2015- the disease prevention, treatment, and 09-18/pdf/2015-23389.pdf. OMB Control Number 0910–NEW the safety, efficacy, and usage of Docket: For access to the docket to FDA is seeking to conduct qualitative products overseen by the Agency, FDA read background documents or the and quantitative research studies to is requesting approval of this generic electronic and written/paper comments better understand consumers’, patients’, information collection request. received, go to https:// caregivers’, academic/scientific experts’, The qualitative and quantitative www.regulations.gov and insert the and public health professionals’ research anticipated by FDA aligns with docket number, found in brackets in the perceptions and behaviors regarding Agency objectives. For example, among

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eight scientific priorities is the goal to the process of respondent enrollment. FDA plans to use the data collected support social and behavioral sciences. PII will be accessible to only those under this generic clearance to inform Such research helps the Agency meet contractors or cooperative agreement its FDA-regulated products educational, this goal by: grantee who need it and will not be interventions, outcomes, and regulatory • Identifying gaps in the target linked to interview data. Neither FDA science programs, materials and audience’s knowledge regarding FDA- employees nor any Federal employee of resources and disease prevention and regulated products, and outcomes any other agency will have access to PII. treatment. FDA expects the data to associated the disease prevention, All PII will be destroyed by contractors guide the formulation of the Agency’s treatment; as soon as feasible following data educational and public health objectives • reaching diverse audiences; collected during interviews. on FDA-regulated products and support • assessing target audiences’ All electronic and hard-copy data will development of subsequent research knowledge, perceptions, and behaviors be maintained securely throughout the efforts. The data will not be used to about FDA-regulated products; information collection and data make policy or regulatory decisions. • evaluating the effectiveness of processing phases. While under review, Rather, these data will: (1) Inform FDA’s FDA’s communications; electronic data will be stored in locked • public education campaigns and other exploring ways to incorporate files on secured computers; hard-copy educational/interventional materials patient input into decision-making; data will be maintained in secure • directed to informing consumers, leveraging real-world data; building facilities in locked filing patients, caregivers, and public health • evaluating outcomes; and cabinets. As a further guarantee of professionals about human and animal • integrating the knowledge gained privacy and anonymity, all data will be health issues and (2) provide from the research into Agency reported to FDA in aggregate form, with information on the safety, efficacy, and communications, activities, no links to individuals preserved. usage of FDA-regulated products. interventions, and programs. Reports generated by this information FDA will only submit a collection for collection will be used only for research If these conditions are not met, FDA approval under this generic clearance if purposes and for the development of will submit an information collection it meets the following conditions: communication messages. request to OMB for approval through the information provided by respondents Social and behavioral testing efforts normal PRA process. will be kept private and anonymous, described in this proposal are typically To obtain approval for a collection except as otherwise required by law. considered exempt from the that meets the conditions of this generic This will be communicated to ‘‘Regulations for the Protection of clearance, an abbreviated supporting respondents by means of introductory Human Subjects’’ in accordance with 45 statement will be submitted to OMB letters, explanatory texts on the cover CFR 46.101(b)(3). Before data are along with supporting documentation pages of questionnaires, scripts read collected, FDA researchers must obtain (e.g., a copy of the interview or prior to focus groups or telephone either an exemption or an expedited or moderator guide, screening interviews, and consent forms as full approval for all research from FDA’s questionnaire). appropriate. Respondents also will be institutional review board (IRB). FDA will submit individual advised of the following: (1) The nature When FDA’s IRB determines that qualitative and quantitative collections of the activity; (2) the intended purpose minors are capable of giving assent, the under this generic clearance to the and use of the data collected; (3) FDA IRB shall determine whether adequate OMB. Individual collections will also sponsorship (when appropriate); and (4) provisions are made for soliciting undergo review by FDA’s IRB, senior the fact that participation is voluntary at assent. Generally, assent requires leadership in the for the primary all times. Because responses are securing the signature of a minor investigator’s respective offices, and voluntary, respondents will be assured potentially participating in the research PRA specialists. that there will be no penalties if they in a separate assent form, in addition to decide not to respond, either to the the consent form the parent or legal Description of Respondents: The information collection as a whole or to guardian signs. An assent document respondents to this collection of any individual questions. should: (1) Contain an explanation of information are all FDA stakeholders Only Agency or Agency-sponsored the study; (2) a description of what is including, general population personnel will have access to required of the subject (e.g., what he or individuals, as well as consumers of individual-level surveys, interviews, or she will experience (whether the minor certain products, patients and their focus group data. All project staff from will be in the hospital, whether the caregivers, academic/scientific experts, a contractor or cooperative agreement minor’s parents will be with him or her, individuals from specific target labor grantee conducting the information etc.)); (3) an explanation of any risks groups such as physicians, medical collection must take required measures and pain associated with the study; (4) specialists, pharmacists, dentists, to ensure respondent privacy and an explanation of any anticipated nurses, veterinarians, dietitians, and confidentiality of data. Personally change in the minor’s appearance; and other public health professionals. identifiable information (PII) shall be (5) an explanation of the benefits to the FDA estimates the burden of this limited to data that may be required in minor or others. collection of information as follows:

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

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

Interviews/Surveys/Focus Groups .... 2,520 14.6 36,792 0.25 (15 minutes) ...... 9,198 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

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This is a new collection of www.regulations.gov will be posted to Agency will review this copy, including information whose total estimated the docket unchanged. Because your the claimed confidential information, in annual reporting burden is 9,198 hours. comment will be made public, you are its consideration of comments. The The number of participants to be solely responsible for ensuring that your second copy, which will have the included in each individual generic comment does not include any claimed confidential information submission under this collection of confidential information that you or a redacted/blacked out, will be available information will vary, depending on the third party may not wish to be posted, for public viewing and posted on nature of the compliance efforts and the such as medical information, your or https://www.regulations.gov. Submit target audience. anyone else’s Social Security number, or both copies to the Dockets Management Dated: June 30, 2020. confidential business information, such Staff. If you do not wish your name and as a manufacturing process. Please note Lowell J. Schiller, contact information to be made publicly that if you include your name, contact available, you can provide this Principal Associate Commissioner for Policy. information, or other information that information on the cover sheet and not [FR Doc. 2020–14517 Filed 7–6–20; 8:45 am] identifies you in the body of your in the body of your comments and you BILLING CODE 4164–01–P comments, that information will be must identify this information as posted on https://www.regulations.gov. ‘‘confidential.’’ Any information marked • If you want to submit a comment as ‘‘confidential’’ will not be disclosed DEPARTMENT OF HEALTH AND with confidential information that you except in accordance with 21 CFR 10.20 HUMAN SERVICES do not wish to be made available to the and other applicable disclosure law. For public, submit the comment as a Food and Drug Administration more information about FDA’s posting written/paper submission and in the of comments to public dockets, see 80 [Docket No. FDA–2020–N–1206] manner detailed (see ‘‘Written/Paper FR 56469, September 18, 2015, or access Submissions’’ and ‘‘Instructions’’). the information at: https:// Electronic Study Data Submission; www.govinfo.gov/content/pkg/FR-2015- Data Standards; Support and Written/Paper Submissions 09-18/pdf/2015-23389.pdf. Requirement Begin for Study Data Submit written/paper submissions as Docket: For access to the docket to Tabulation Model Version 1.7 follows: read background documents or the • Mail/Hand delivery/Courier (for Implementation Guide 3.3 and for electronic and written/paper comments written/paper submissions): Dockets Define-Extensible Markup Language received, go to https:// Management Staff (HFA–305), Food and Version 2.1; Requirement Ends for www.regulations.gov and insert the Drug Administration, 5630 Fishers Study Data Tabulation Model Version docket number, found in brackets in the 1.3 Implementation Guide 3.1.3 Lane, Rm. 1061, Rockville, MD 20852. • For written/paper comments heading of this document, into the AGENCY: Food and Drug Administration, submitted to the Dockets Management ‘‘Search’’ box and follow the prompts HHS. Staff, FDA will post your comment, as and/or go to the Dockets Management ACTION: Notice. well as any attachments, except for Staff, 5630 Fishers Lane, Rm. 1061, information submitted, marked and Rockville, MD 20852, 240–402–7500. SUMMARY: The Food and Drug identified, as confidential, if submitted FOR FURTHER INFORMATION CONTACT: Administration’s (FDA or Agency) as detailed in ‘‘Instructions.’’ Chenoa Conley, Center for Drug Center for Biologics Evaluation and Instructions: All submissions received Evaluation and Research, Food and Research (CBER) and Center for Drug must include the Docket No. FDA– Drug Administration, 10903 New Evaluation and Research (CDER) are 2020–N–1206 for ‘‘Electronic Study Hampshire Ave., Bldg. 51, Rm. 1117, announcing the dates that support and Data Submission; Data Standards; Silver Spring, MD 20993–0002, 301– requirement will begin for version 1.7 of Support and Requirement Begin for 796–0035, cderdatastandards@ the Clinical Data Interchange Standards Study Data Tabulation Model Version fda.hhs.gov, or Stephen Ripley, Center Consortium (CDISC) for Study Data 1.7 Implementation Guide 3.3 and for for Biologics Evaluation and Research, Tabulation Model (SDTM) Define-Extensible Markup Language Food and Drug Administration, Bldg. Implementation Guide (IG) 3.3, as well Version 2.1; Requirement Ends for 71, Rm. 7301, Silver Spring, MD 20993– as for version 2.1 of the Define- Study Data Tabulation Model Version 0002, 240–402–7911. Extensible Markup Language (Define- 1.3 Implementation Guide 3.1.3.’’ SUPPLEMENTARY INFORMATION: On XML). CBER and CDER are also Received comments will be placed in December 17, 2014, FDA published a announcing the date that support and the docket and, except for those final guidance for industry entitled requirement will end for version 1.3 of submitted as ‘‘Confidential ‘‘Providing Regulatory Submissions in the CDISC SDTM IG 3.1.3. The Agency Submissions,’’ publicly viewable at Electronic Format—Standardized Study will update the FDA Data Standards https://www.regulations.gov or at the Data’’ (eStudy Data guidance), posted on Catalog (Catalog) to reflect these Dockets Management Staff between 9 FDA’s Study Data Standards Resources changes. a.m. and 4 p.m., Monday through web page at https://www.fda.gov/ ADDRESSES: You may submit either Friday, 240–402–7500. forindustry/datastandards/ electronic or written comments at any • Confidential Submissions—To studydatastandards/default.htm. The time as follows: submit a comment with confidential eStudy Data guidance implements the information that you do not wish to be electronic submission requirements of Electronic Submissions made publicly available, submit your section 745A(a) of the Federal Food, Submit electronic comments in the comments only as a written/paper Drug, and Cosmetic Act (21 U.S.C. following way: submission. You should submit two 379k–1(a)) for study data contained in • Federal eRulemaking Portal: copies total. One copy will include the new drug applications (NDAs), https://www.regulations.gov. Follow the information you claim to be confidential abbreviated new drug applications instructions for submitting comments. with a heading or cover note that states (ANDAs), biologics license applications Comments submitted electronically, ‘‘THIS DOCUMENT CONTAINS (BLAs), and certain investigational new including attachments, to https:// CONFIDENTIAL INFORMATION.’’ The drug applications (INDs) submitted to

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CDER or CBER by specifying the format electronic filing system will accept Dockets Management Staff between 9 for electronic submissions. The eStudy comments until 11:59 p.m. Eastern Time a.m. and 4 p.m., Monday through Data guidance states that a Federal at the end of September 8, 2020. Friday. Register notice will specify any new Comments received by mail/hand • Confidential Submissions—To standards and version updates, when delivery/courier (for written/paper submit a comment with confidential the support begins or ends, and when submissions) will be considered timely information that you do not wish to be the requirement begins or ends, that will if they are postmarked or the delivery made publicly available, submit your be added to the Catalog. Support for service acceptance receipt is on or comments only as a written/paper version 1.7 of the CDISC SDTM IG 3.3 before that date. submission. You should submit two and version 2.1 of the Define-XML will copies total. One copy will include the Electronic Submissions begin on March 15, 2021, and the date information you claim to be confidential that the requirement begins will be on Submit electronic comments in the with a heading or cover note that states March 15, 2022, for NDAs, ANDAs, and following way: ‘‘THIS DOCUMENT CONTAINS • certain BLAs. For noncommercial INDs, Federal eRulemaking Portal: CONFIDENTIAL INFORMATION.’’ The the date that requirement begins will be https://www.regulations.gov. Follow the Agency will review this copy, including March 15, 2023. Support and instructions for submitting comments. the claimed confidential information, in requirement ended for version 1.3 of the Comments submitted electronically, its consideration of comments. The CDISC SDTM IG 3.1.3 will end on including attachments, to https:// second copy, which will have the March 15, 2021. www.regulations.gov will be posted to claimed confidential information the docket unchanged. Because your Dated: June 30, 2020. redacted/blacked out, will be available comment will be made public, you are for public viewing and posted on Lowell J. Schiller, solely responsible for ensuring that your https://www.regulations.gov. Submit Principal Associate Commissioner for Policy. comment does not include any both copies to the Dockets Management [FR Doc. 2020–14512 Filed 7–6–20; 8:45 am] confidential information that you or a Staff. If you do not wish your name and BILLING CODE 4164–01–P third party may not wish to be posted, contact information to be made publicly such as medical information, your or available, you can provide this anyone else’s Social Security number, or information on the cover sheet and not DEPARTMENT OF HEALTH AND confidential business information, such in the body of your comments and you HUMAN SERVICES as a manufacturing process. Please note must identify this information as that if you include your name, contact Food and Drug Administration ‘‘confidential.’’ Any information marked information, or other information that as ‘‘confidential’’ will not be disclosed [Docket No. FDA–2020–N–1307] identifies you in the body of your except in accordance with 21 CFR 10.20 comments, that information will be and other applicable disclosure law. For Agency Information Collection posted on https://www.regulations.gov. more information about FDA’s posting • Activities; Proposed Collection; If you want to submit a comment of comments to public dockets, see 80 Comment Request; Examination of with confidential information that you FR 56469, September 18, 2015, or access Secondary Claim Disclosures and do not wish to be made available to the the information at: https:// Biosimilar Disclosures in Prescription public, submit the comment as a www.govinfo.gov/content/pkg/FR-2015- Drug Promotional Materials written/paper submission and in the 09-18/pdf/2015-23389.pdf. manner detailed (see ‘‘Written/Paper AGENCY: Food and Drug Administration, Docket: For access to the docket to Submissions’’ and ‘‘Instructions’’). Health and Human Services (HHS). read background documents or the ACTION: Notice. Written/Paper Submissions electronic and written/paper comments received, go to https:// Submit written/paper submissions as SUMMARY: The Food and Drug www.regulations.gov and insert the follows: Administration (FDA) is announcing an • Mail/Hand Delivery/Courier (for docket number, found in brackets in the opportunity for public comment on the written/paper submissions): Dockets heading of this document, into the proposed collection of certain Management Staff (HFA–305), Food and ‘‘Search’’ box and follow the prompts information by the Agency. Under the Drug Administration, 5630 Fishers and/or go to the Dockets Management Paperwork Reduction Act of 1995 (the Lane, Rm. 1061, Rockville, MD 20852. Staff, 5630 Fishers Lane, Rm. 1061, PRA), Federal Agencies are required to • For written/paper comments Rockville, MD 20852. publish notice in the Federal Register submitted to the Dockets Management FOR FURTHER INFORMATION CONTACT: Ila concerning each proposed collection of Staff, FDA will post your comment, as S. Mizrachi, Office of Operations, Food information and to allow 60 days for well as any attachments, except for and Drug Administration, Three White public comment in response to the information submitted, marked and Flint North, 10A–12M, 11601 notice. This notice solicits comments on identified, as confidential, if submitted Landsdown St., North Bethesda, MD research entitled, ‘‘Examination of as detailed in ‘‘Instructions.’’ 20852, 301–796–7726, PRAStaff@ Secondary Claim Disclosures and Instructions: All submissions received fda.hhs.gov. Biosimilar Disclosures in Prescription must include the Docket No. FDA– For copies of the questionnaire Drug Promotional Materials.’’ 2020–N–1307 for ‘‘Examination of contact: Office of Prescription Drug DATES: Submit either electronic or Secondary Claim Disclosures and Promotion (OPDP) Research Team, written comments on the collection of Biosimilar Disclosures in Prescription [email protected]. information by September 8, 2020. Drug Promotional Materials.’’ Received SUPPLEMENTARY INFORMATION: Under the ADDRESSES: You may submit comments comments, those filed in a timely PRA (44 U.S.C. 3501–3521), Federal as follows. Please note that late, manner (see ADDRESSES), will be placed Agencies must obtain approval from the untimely filed comments will not be in the docket and, except for those Office of Management and Budget considered. Electronic comments must submitted as ‘‘Confidential (OMB) for each collection of be submitted on or before September 8, Submissions,’’ publicly viewable at information they conduct or sponsor. 2020. The https://www.regulations.gov https://www.regulations.gov or at the ‘‘Collection of information’’ is defined

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in 44 U.S.C. 3502(3) and 5 CFR conducted research to evaluate the which clearly states that FDA has not 1320.3(c) and includes Agency requests aspects of prescription drug promotion evaluated those claims (Refs. 2 and 3). or requirements that members of the that are most central to our mission. Our In the context of prescription drug public submit reports, keep records, or research focuses in particular on three promotion, there is initial evidence provide information to a third party. main topic areas: Advertising features, that—when noticed—disclosures may Section 3506(c)(2)(A) of the PRA (44 including content and format; target effectively convey important U.S.C. 3506(c)(2)(A)) requires Federal populations; and research quality. information (Refs. 4 to 6); however, Agencies to provide a 60-day notice in Through the evaluation of advertising what role disclosures may play in the Federal Register concerning each features, we assess how elements such educating or correcting proposed collection of information as graphics, format, and disease and misunderstanding warrants further before submitting the collection to OMB product characteristics impact the investigation. for approval. To comply with this communication and understanding of In the new study proposed here, the requirement, FDA is publishing notice prescription drug risks and benefits. first type of disclosed information we of the proposed collection of Focusing on target populations allows will examine is clinical benefit information set forth in this document. us to evaluate how understanding of information based on a secondary With respect to the following prescription drug risks and benefits may endpoint reported in a product’s collection of information, FDA invites vary as a function of audience, and our approved labeling (a secondary claim). comments on these topics: (1) Whether focus on research quality aims at In some cases, truthful and non- the proposed collection of information maximizing the quality of our research misleading presentations about is necessary for the proper performance data through analytical methodology secondary endpoints in well-designed of FDA’s functions, including whether development and investigation of clinical studies can provide reliable the information will have practical sampling and response issues. This information about treatment effects that utility; (2) the accuracy of FDA’s study will inform the first two topic may be distinct from the treatment estimate of the burden of the proposed areas: Advertising features, including effects described in the product’s collection of information, including the content and format, and target indication statement. For example, a validity of the methodology and populations. assumptions used; (3) ways to enhance Because we recognize that the product may be indicated to treat a the quality, utility, and clarity of the strength of data and the confidence in specific type of cancer based on a information to be collected; and (4) the robust nature of the findings is primary endpoint of survival. However, ways to minimize the burden of the improved by utilizing the results of a secondary endpoint in the study of collection of information on multiple converging studies, we that product may provide data about an respondents, including through the use continue to develop evidence to inform additional distinct benefit, such as of automated collection techniques, our thinking. We evaluate the results functional status. when appropriate, and other forms of from our studies within the broader Phase 1 of the proposed research will information technology. context of research and findings from examine the impact of adding a Examination of Secondary Claim other sources, and this larger body of disclosure about a secondary claim in Disclosures and Biosimilar Disclosures knowledge collectively informs our DTC and healthcare professional (HCP)- in Prescription Drug Promotional policies as well as our research program. directed promotion in the context of a Materials Our research is documented on our prescription drug website. We will also homepage, which can be found at: examine the effect of the presence of a OMB Control Number 0910—NEW https://www.fda.gov/aboutfda/ comparative claim about the secondary Section 1701(a)(4) of the Public centersoffices/officeofmedicalproducts claim. Our proposed main outcome Health Service Act (42 U.S.C. andtobacco/cder/ucm090276.htm. The measures are perceptions of and 300u(a)(4)) authorizes FDA to conduct website includes links to the latest attitudes toward the product, the research relating to health information. Federal Register notices and peer- secondary claim, and the disclosure. Section 1003(d)(2)(C) of the Federal reviewed publications produced by our The pretest and main studies for Phase Food, Drug, and Cosmetic Act (FD&C office. The website maintains 1 will have the same design, will be Act) (21 U.S.C. 393(d)(2)(C)) authorizes information on studies we have conducted online, and will follow the FDA to conduct research relating to conducted, dating back to a survey on same procedure. We will examine four drugs and other FDA regulated products direct-to-consumer (DTC) levels of secondary claim disclosure to in carrying out the provisions of the advertisements conducted in 1999. explore the effects of disclosing that the FD&C Act. The purpose of this research is to secondary benefit is not one of the The Office of Prescription Drug build on prior FDA research on the indicated uses of the product (e.g., not Promotion’s (OPDP) mission is to topic of disclosures by examining the a treatment for [the secondary benefit protect the public health by helping to impact of disclosures of two different claim], quantitative information about ensure that prescription drug types of information, detailed later in claim, not a treatment for [claim] and promotional material is truthful, this notice. The literature on disclosures quantitative information about claim, or balanced, and accurately suggests their effectiveness is subject to no disclosure), and two levels (presence communicated, so that patients and format, design, and audience factors, or absence) of a comparative element health care providers can make among other things (Ref. 1). For regarding the secondary claim, for a informed decisions about treatment example, research on consumer total of eight experimental conditions options. OPDP’s research program attitudes have found some people (see table 1). Participants will be provides scientific evidence to help believe that FDA evaluates certain randomly assigned to one of these ensure that our policies related to dietary supplement claims despite the conditions; they will view one version prescription drug promotion will have presence and consumer awareness of of a website. This 4 × 2 design will be the greatest benefit to public health. language required by the Dietary replicated across two target populations Toward that end, we have consistently Supplement Health and Education Act, (HCPs and consumers).

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TABLE 1—PHASE 1 STUDY DESIGN

Phase 1: Secondary claim disclosure by comparative secondary claim in online prescription drug websites Secondary claim disclosure ‘‘Drug X is not a ‘‘In a clinical treatment for [claim]’’ Comparative secondary claim trial, participants AND ‘‘In a clinical ‘‘Drug X is not a [quantitative trial, participants None treatment for [claim]’’ information] on [quantitative (no secondary claim) Drug X’’ information] on Drug X.’’

HCPs: Present: Compared to [xx] on Drug Y. Absent. Consumers: Present: Compared to [xx] on Drug Y. Absent.

The second, independent phase of the and attitudes toward the biosimilar generally (for example, ‘‘This biosimilar proposed research will examine product and the disclosure. is a biological product that is highly disclosures about a biosimilar product. We propose to examine seven similar to and has no clinically In both consumer and HCP audiences, different disclosure conditions plus a meaningful differences from an existing we will assess the impact of a disclosure control with no disclosure for a total of FDA-approved reference product’’). The designating the product as a biosimilar eight test conditions. As a baseline, each wording of the disclosure will be as well as varying basic factual of the seven disclosure conditions will tailored to the audience; for example, statements about biosimilars. Phase 2 include a statement that the drug is a the disclosures for the consumer biosimilar. Six of the seven disclosure will examine the impact of: (1) Adding audience will avoid technical terms. A conditions will include this baseline a disclosure designating the product as control condition will also be included statement and will vary the amount of in which no biosimilar statement or a biosimilar; (2) adding general additional basic factual information informational statements about additional information disclosure is about biosimilar products in the presented. biosimilars; and (3) naming a reference following way: (1) Two of the six product. This approach allows us to conditions have the baseline + The pretest and main studies for examine the effect of disclosing statement A; (2) two of the six Phase 2 will have the same design, will biosimilar status, examines the additive conditions have the baseline + be conducted online, and will follow effect of including one, two, or three statement A + statement B; and (3) two the same procedure. Both phases will be additional basic statements of of the six conditions have the baseline conducted concurrently. Sample sizes information about biosimilars, and + statement A + statement B + statement were determined on the basis of power measures the effect of naming the C. Moreover, three of the six disclosure analysis that will allow us to detect reference product. Our proposed main conditions will name the specific medium effect sizes. outcome measures are perceptions of reference product while the other three FDA estimates the burden of this will refer to a reference product collection of information as follows: TABLE 2—ESTIMATED ANNUAL REPORTING BURDEN 1

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

Phase 1 Pretest screener (HCPs) ...... 432 1 432 .08 (5 minutes) ...... 35 Phase 1 Pretest screener (consumers) ...... 432 1 432 .08 (5 minutes) ...... 35 Phase 1 Pretest completes (HCPs) ...... 238 1 238 .33 (20 minutes) ...... 79 Phase 1 Pretest completes (consumers) ...... 238 1 238 .33 (20 minutes) ...... 79 Phase 2 Pretest screener (HCPs) ...... 112 1 112 .08 (5 minutes) ...... 9 Phase 2 Pretest screener (consumers) ...... 112 1 112 .08 (5 minutes) ...... 9 Phase 2 Pretest completes (HCPs) ...... 62 1 62 .33 (20 minutes) ...... 21 Phase 2 Pretest completes (consumers) ...... 62 1 62 .33 (20 minutes) ...... 21 Phase 1 screener (HCPs) ...... 720 1 720 .08 (5 minutes) ...... 58 Phase 1 screener (consumers) ...... 720 1 720 .08 (5 minutes) ...... 58 Phase 1 completes (HCPs) ...... 396 1 396 .33 (20 minutes) ...... 131 Phase 1 completes (consumers) ...... 396 1 396 .33 (20 minutes) ...... 131 Phase 2 screener (HCPs) ...... 1,040 1 1,040 .08 (5 minutes) ...... 83 Phase 2 screener (consumers) ...... 1,040 1 1,040 .08 (5 minutes) ...... 83 Phase 2 completes (HCPs) ...... 572 1 572 .33 (20 minutes) ...... 189 Phase 2 completes (consumers) ...... 572 1 572 .33 (20 minutes) ...... 189

Total ...... 7,144 ...... 7,144 ...... 1,210 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

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References DEPARTMENT OF HEALTH AND 796–5003, Graham.Thompson@ HUMAN SERVICES fda.hhs.gov. The following references are on SUPPLEMENTARY INFORMATION: display with the Dockets Management Food and Drug Administration Staff (see ADDRESSES) and are available I. Background [Docket No. FDA–2020–N–1538] for viewing by interested persons FDA is requesting that public between 9 a.m. and 4 p.m., Monday Prescription Drug User Fee Act; stakeholders—including patient and through Friday; these are not available Stakeholder Consultation Meetings on consumer advocacy groups, healthcare electronically at https:// the Prescription Drug User Fee Act professionals, and scientific and www.regulations.gov as these references Reauthorization; Request for academic experts—notify the Agency of are copyright protected. Some may be Notification of Stakeholder Intention to their intent to participate in periodic available at the website address, if Participate stakeholder consultation meetings on listed. FDA has verified the website the reauthorization of PDUFA. PDUFA AGENCY: Food and Drug Administration, addresses, as of the date this document authorizes FDA to collect user fees from HHS. publishes in the Federal Register, but the regulated industry for the process websites are subject to change over time. ACTION: Notice; request for notification for the review of human drugs. The of participation. 1. Andrews, J.C. (2011). ‘‘Warnings and authorization for the current program Disclosures.’’ In Communicating Risks SUMMARY: The Food and Drug (PDUFA VI) expires in September 2022. and Benefits: An Evidence-Based User’s Administration (FDA or Agency) is Without new legislation, FDA will no Guide. Fischhoff, B., N.T. Brewer, and issuing this notice to request that public longer be able to collect user fees for J.S. Downs, (Eds). FDA: Silver Spring, stakeholders—including patient and future fiscal years to fund the human MD, pp. 149–161. consumer advocacy groups, healthcare drug review process. 2. Russo France, K. and P. Fitzgerald Bone professionals, and scientific and Section 736B(f)(1) of the FD&C Act (2005). ‘‘Policy Makers’ Paradigms and academic experts—notify FDA of their (21 U.S.C. 379h–2(f)(1)) requires that Evidence from Consumer Interpretations intent to participate in periodic FDA consult with a range of of Dietary Supplement Labels.’’ Journal consultation meetings on the stakeholders, including representatives of Consumer Affairs, 39(1), 27–51. reauthorization of the Prescription Drug from patient and consumer groups, 3. Mason, M.J. and D.L. Scammon (2011). User Fee Act (PDUFA). The statutory healthcare professionals, and scientific ‘‘Unintended Consequences of Health authority for PDUFA expires in and academic experts, in developing Supplement Information Regulations: September 2022. At that time, new recommendations for the next PDUFA The Importance of Recognizing legislation will be required for FDA to program. FDA will initiate the Consumer Motivations.’’ Journal of continue collecting user fees for the reauthorization process by holding a Consumer Affairs, 45(2), 201–223. prescription drug program. The Federal public meeting on July 23, 2020, where 4. Betts, K.R., K.J. Aikin, V. Boudewyns, M. Food, Drug, and Cosmetic Act (FD&C stakeholders and other members of the Johnson, et al. (2017). ‘‘Physician Act) requires that FDA consult with a public will be given an opportunity to Response to Contextualized Price- range of stakeholders in developing present their views on the Comparison Claims in Prescription Drug recommendations for the next PDUFA reauthorization. The FD&C Act further Advertising.’’ Journal of Communication program. The FD&C Act also requires requires that FDA continue meeting in Healthcare, 10(3), 195–204. that FDA hold discussions (at least with these stakeholders at least once 5. Betts, K.R., V. Boudewyns, K.J. Aikin, C. every month) with patient and every month during negotiations with Squire, et al. (2018). ‘‘Serious and consumer advocacy groups during the regulated industry to continue Actionable Risks, Plus Disclosure: FDA’s negotiations with the regulated discussions of stakeholder views on the Investigating an Alternative Approach industry. The purpose of this request for reauthorization. It is anticipated that for Presenting Risk Information in notification is to ensure continuity and these monthly stakeholder consultation Prescription Drug Television progress in these monthly discussions meetings will commence in September Advertisements.’’ Research in Social and by establishing consistent stakeholder 2020. Administrative Pharmacy, 14(10), 951– representation. FDA is issuing this Federal Register 963. notice to request that stakeholder 6. Sullivan, H.W., A.C. O’Donoghue, K.T. DATES: Submit notification of intention representatives from patient and David, and N.J. Patel (2018). ‘‘Disclosing to participate in these series of meetings consumer groups, healthcare Accelerated Approval on by August 17, 2020. Stakeholder professional associations, as well as Direct-To-Consumer Prescription Drug meetings will be held monthly. It is scientific and academic experts, notify websites.’’ Pharmacoepidemiology and anticipated that they will commence in FDA of their intent to participate in the Drug Safety, 27(11), 1277–1280. September 2020. See the periodic stakeholder consultation Dated: June 30, 2020. SUPPLEMENTARY INFORMATION section for meetings on PDUFA reauthorization. registration date and information. Lowell J. Schiller, FDA believes that consistent ADDRESSES: The meetings will take Principal Associate Commissioner for Policy. stakeholder representation at these place virtually and will be held by meetings will be important to ensure [FR Doc. 2020–14514 Filed 7–6–20; 8:45 am] webcast only. Submit notification of progress in these discussions. If you BILLING CODE 4164–01–P intention to participate in monthly wish to participate in the stakeholder stakeholder meetings by email to consultation meetings, please designate [email protected]. one or more representatives from your FOR FURTHER INFORMATION CONTACT: organization who will commit to Graham Thompson, Center for Drug attending these meetings and preparing Evaluation and Research, Food and for the discussions. Stakeholders who Drug Administration, 10903 New identify themselves through this notice Hampshire Ave., Bldg. 51, Rm. 1146, will be included in all stakeholder Silver Spring, MD 20993–0002, 301– consultation discussions while FDA

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negotiates with the regulated industry. If OMB recommends that written ADFs will help to inform FDA’s a stakeholder decides to participate in comments be submitted to https:// approaches to ADFs. these monthly meetings at a later time, www.reginfo.gov/public/do/PRAMain. Given the significance and far- that stakeholder may join the remaining Find this particular information reaching nature of the opioid crisis, monthly stakeholder consultation collection by selecting ‘‘Currently under along with FDA concerns about meetings after notifying FDA of this Review—Open for Public Comments’’ or potential misunderstanding among intention (see ADDRESSES). These by using the search function. The title HCPs about ADF terminology and stakeholder discussions will satisfy the of this information collection is ‘‘Health capabilities, FDA determined that consultation requirement in section Care Providers’ Understanding of systematic research was necessary to 736B(f)(3) of the FD&C Act. Opioid Analgesic Abuse Deterrent provide the detailed and comprehensive Formulations.’’ Also include the FDA evidence on which to base the Agency’s II. Notification of Intent To Participate docket number found in brackets in the ADF-related policy, regulatory, and in Periodic Stakeholder Consultation heading of this document. communication decisions, including Meetings potential alternative language that may FOR FURTHER INFORMATION CONTACT: If you intend to participate in Ila be necessary to describe and explain continued periodic stakeholder S. Mizrachi, Office of Operations, Food these products. This work aligns with consultation meetings regarding PDUFA and Drug Administration, Three White Priority 1 of the FDA’s Strategic Policy reauthorization, please provide Flint North, 10A–12M, 11601 Roadmap (https://www.fda.gov/about- notification by email to Landsdown St., North Bethesda, MD fda/reports/healthy-innovation-safer- [email protected] by 20852, 301–796–7726, PRAStaff@ families-fdas-2018-strategic-policy- August 17, 2020. Your email should fda.hhs.gov. roadmap), and the Department of Health contain complete contact information, SUPPLEMENTARY INFORMATION: In and Human Services (HHS) and the including name, title, affiliation, compliance with 44 U.S.C. 3507, FDA Administration have similarly placed address, email address, phone number, has submitted the following proposed high priorities on addressing the and notice of any special collection of information to OMB for epidemic of misuse and abuse of opioid accommodations required because of review and clearance. drugs harming U.S. families. disability. Stakeholders will receive The study’s purpose is to explore and confirmation and additional information Health Care Providers’ Understanding assess the ADF-related knowledge, about the first meeting after FDA of Opioid Analgesic Abuse Deterrent attitudes, and behaviors among opioid receives this notification. Formulations prescribers (physicians, nurse OMB Control Number 0910–NEW practitioners and physician assistants) Dated: July 1. 2020. and dispensers/pharmacists, including Lowell J. Schiller, I. Background the related terms addiction and abuse Principal Associate Commissioner for Policy. deterrence, and to explore possible Section 1701(a)(4) of the Public [FR Doc. 2020–14585 Filed 7–6–20; 8:45 am] alternative language for describing these Health Service Act (42 U.S.C. BILLING CODE 4164–01–P products. Phase 1 consisted of focus 300u(a)(4)) authorizes FDA to conduct groups (OMB approval under control research relating to health information. number 0910–0695). The research DEPARTMENT OF HEALTH AND Section 1003(d)(2)(C) of the Federal described in this notice represents HUMAN SERVICES Food, Drug, and Cosmetic Act (FD&C Phases 2 and 3 of the overall project. Act) (21 U.S.C. 393(d)(2)(C)) authorizes Phase 2 will consist of a survey based Food and Drug Administration FDA to conduct research relating to on the Phase 1 focus group findings [Docket No. FDA–2019–N–5973] drugs and other FDA-regulated products related to: (1) Health care provider in carrying out the provisions of the understanding of addiction, abuse, and Agency Information Collection FD&C Act. abuse deterrent formulations; (2) Activities; Submission for Office of Prescription opioids play a significant attitudes toward, perceptions about, and Management and Budget Review; role in the opioid misuse and abuse experiences with abuse-deterrent opioid Comment Request; Health Care epidemic in the United States. Opioid analgesics and abuse deterrence, Providers’ Understanding of Opioid analgesics with properties designed to including prescribing decisions and Analgesic Abuse Deterrent deter abuse, commonly known as abuse practices, potential barriers to using Formulations deterrent formulations (ADFs), may play ADFs, the quality and understandability a role in helping to curb this epidemic. of the ADF nomenclature, and the AGENCY: Food and Drug Administration, Currently available ADFs have been underlying reasons for these HHS. demonstrated to deter some forms of perceptions; and (3) HCPs’ ideas for ACTION: Notice. abuse (injection, snorting, or, in some minimizing confusion about ADFs, the SUMMARY: The Food and Drug cases, chewing and swallowing). FDA’s kinds of ADF training needed, and Administration (FDA) is announcing own research and other evidence suggested language/terms they believe that a proposed collection of suggests considerable variability in would best convey the concept of abuse information has been submitted to the health care providers’ (HCPs) deterrence to HCPs. The objective of the Office of Management and Budget knowledge of and attitudes toward survey will be to determine the (OMB) for review and clearance under prescription opioid products and prevalence of HCP knowledge, attitudes, the Paperwork Reduction Act of 1995 practices (Ref. 1), including behaviors, and perceptions identified (PRA). understanding of ADFs. ADF through the qualitative discussion prescription practices may present occurring in the Phase 1 focus groups DATES: Fax written comments on the opportunities for HCPs to reduce opioid and to uncover any subgroup collection of information by August 6, abuse. Conducting a comprehensive differences among opioid prescribers 2020. evaluation of opioid prescribers’ and dispensers. We will conduct one ADDRESSES: To ensure that comments on knowledge, attitudes, perceptions, pretest, averaging not longer than 20 the information collection are received, experiences, and behaviors related to minutes, to pilot the main survey

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procedures among the target HCP phase of the project. With the sample language is needed to better describe populations. The main survey will also sizes described below, we will have and explain ADFs. average 20 minutes. sufficient power to detect primarily (Response 3) Thank you for this Phase 3 will build on findings from small-sized effects for Phases 2 and 3. comment. the Phase 1 focus groups and Phase 2 In the Federal Register of February 5, (Comment 4) We strongly encourage survey and will consist of an 2020 (85 FR 6562), FDA published a 60- testing the impact of terminology that experimental study examining day notice requesting public comment more accurately describes the product’s variations in descriptive terminology for on the proposed collection of abuse-deterrent properties. For example, abuse deterrent formulation products. information. FDA received three if a pill is formulated to be difficult to We will conduct two pretests, each submissions that were PRA-related. crush, it should be labeled ‘‘crush- averaging not longer than 20 minutes, to Within those submissions, FDA resistant.’’ test the experimental manipulations and received multiple comments, which the (Response 4) The survey, in part, will pilot the main study procedures. The Agency has addressed below. provide HCPs an opportunity to propose main study procedure will also average (Comment 1) I believe Phase 2 should terms they think best describe these 20 minutes in length. Participants will include more pharmacists than 10 opioids and will test both objectively be randomly assigned to read a percent ratio. and subjectively numerous alternative description of abuse deterrent (Response 1) We have carefully terms that were commonly cited as formulation opioids that contains one of planned the sample for the study to appropriate by HCP participants in the four terms that could be used to refer to ensure sufficient numbers of earlier focus group phase of this study. these products (ADF will function as the prescribers, including primary care This includes terms that relate to control term) and then complete a providers and several types of physical manipulation such as questionnaire that assesses their specialists (including neurologists, pain ‘‘alteration-resistant opioids’’ and comprehension and perceptions of the management specialists, ‘‘tamper-resistant opioids.’’ information, including terminology, as rheumatologists, neurologists, surgeons, (Comment 5) We support FDA’s well as their attitudes, behavioral orthopedists, physical medicine and efforts to ensure the diversity of the intentions, and experience related to rehabilitation specialists), physician sample populations for the three these types of opioid products. assistants and nurse practitioners, as proposed studies. It is important to For all phases of this research, we will well as including a group of pharmacists study health care providers with varying recruit adult health care professional for analysis. Expanding the sample opioid prescribing levels, and years and volunteers 18 years of age or older. We further is beyond the scope of what we locations of practice. We particularly will exclude individuals who work for have planned for the project. Our power commend the efforts to additionally HHS or work in the health care, analysis suggests we will have sufficient account for diverse ages, ethnicities, and marketing, or pharmaceutical industries. power to ensure comparisons between gender of the health care providers, as The sample will consist of 10 percent groups in the sample. In addition, in the all of these factors can affect knowledge, pharmacists, at least half of whom earlier focus group phase, pharmacists attitudes, and the patients they serve. dispense ADF opioids. The other 90 said they rarely talk with patients about (Response 5) Thank you for this percent will be prescribers who, at the ADFs and never talk with health care comment. time they are recruited, spend at least 50 professionals about them, suggesting the (Comment 6) The proposed study percent of their time seeing patients and feedback we would receive from them plans to include a wide range of health who have prescribed opioids to at least would likely be limited. care providers, including primary care five different patients in the last 30 (Comment 2) Practitioners chosen providers; specialists from various fields days, with at least half of the opioids should be based on greater prescribing such as rheumatology, neurology, they prescribe being for chronic non- habits. Those practitioners who are the anesthesiology, pain management, cancer pain. The prescriber sample will larger rate of treating chronic non- emergency medicine, surgery, be segmented to include 70 percent cancer pain with ADF opioid should be orthopedics, and physical medicine and primary care providers (i.e., those the target of information gathering. rehabilitation; nurse practitioners; practicing in family practice, or internal (Response 2) One of our screening physician assistants; as well as or general medicine) and 30 percent a criteria is that at least half of a dispensers/pharmacists. However, there mix of specialists practicing in a variety provider’s prescriptions must be for is clear evidence that dentists, of fields such as rheumatology, chronic, non-cancer pain. We plan to periodontists, and oral surgeons should neurology, anesthesiology, pain include approximately equal numbers of also be included, since research has management, emergency medicine, low, medium, and high prescribers shown that they often overprescribe surgery, orthopedics, and physical across each prescriber type and field of opioids. medicine and rehabilitation. In each of practice so that comparisons can be (Response 6) While the reviewers these groups, 60 to 70 percent will made between groups. In addition, in raises an important consideration, the consist of physicians, 15 percent nurse the earlier focus group phase, current inclusion of dentists and oral surgeons practitioners, and 15 percent physician prescribers of ADFs were already aware is beyond the scope of the current study. assistants. A minimum of 30 percent of and had significant knowledge about Dentists do not typically prescribe for must have experience prescribing an ADFs, so their feedback likely would long-term pain and are therefore less ADF opioid. not provide the kind of insight needed likely to prescribe an abuse-deterrent We will use soft quotas to ensure that about the misunderstanding and formulation opioid or ADF, which is the our sample includes a diversity of confusion we previously observed main focus of this study. For a similar participants, including related to age, among other prescribers. reason, based on what we heard in the race/ethnicity, gender, years and (Comment 3) We support FDA’s earlier focus group phase of this study, location of practice, and opioid decision to conduct a comprehensive we chose to exclude emergency prescribing levels. We will also exclude evaluation of opioid prescribers’ medicine physicians from the sample pretest participants from the main knowledge, attitudes, perceptions, survey populations. studies, and participants will not be experiences, and behaviors related to (Comment 7) The proposed study able to participate in more than one ADFs and agree with the FDA that new should explore providers’ knowledge of

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how ADF opioids are used and abused management. This small subset of HCPs questionnaire itself also asks prescribers once they are on the market. Opioids manage a disproportionate volume of to specifically cite in an open-ended considered to be abuse-deterrent are still patients with chronic non-cancer pain, question the ADF opioids they have widely abused through the most and therefore, they manage a prescribed, which will be used, in part, common oral route. disproportionate volume of current and to asses ADF knowledge. (Response 7) Our survey questions appropriate potential ADF (Comment 11) Set quotas to ensure will include items about provider prescriptions. recruitment of representative sample • knowledge of ADFs, including specific Study can capture both intended sizes for both non-specialists and pain questions to test whether they are aware populations (current and ‘‘appropriate specialists. that ADFs can still be abused, as well as potential’’ prescribers) by recruiting related to their experiences with use, only pain specialists and imposing a (Response 11) Early in the protocol misuse, and abuse of opioids. threshold for experience prescribing development we identified the need for (Comment 8) We applaud the effort to ADF products. samples of prescribers working in gather information about HCPs’ (Response 9) Pain management is one primary care fields and among those in understanding of these products. This of the specialties included on our specific specialties, which research has effort is consistent with the Agency’s recruitment screener (in addition to shown generally prescribe the most history of extensive and diverse efforts rheumatology, neurology, opioids overall, and the sample to balance the needs of people seeking anesthesiology, surgery, orthopedics, populations included in the study will relief from severe acute and chronic and physical medicine and reflect this necessary diversity. pain and the simultaneous need to rehabilitation). Our screening criteria (Comment 12) Lower Ns for Phase 2 avoid worsening of the abuse, addiction, will ensure an approximately equal and 3 to ensure timely completion. In and diversion of opioid medications in number of low, medium, and high- the company’s experience, a survey of these times of the opioid overdose volume prescribers across each provider 200 HCPs takes 5 weeks to complete. epidemic. group. We also have included a (Response 8) Thank you for this (Response 12) We identified current requirement that at least 50 percent of sample sizes based on power comment. prescriptions must be for chronic, non- (Comment 9) We believe that the calculations. Any reduction in sample cancer pain. A key objective of this proposed sample design adequately size would reduce our power to find study is to gain insight into accounts for current ADF product effects. We have planned a timeline for misunderstandings about ADF opioids prescribers for chronic non-cancer pain. the project to complete both phases 2 It is not clear, however, whether the and the terminology and how to best and 3 based experience collecting data proposed sample design would address the confusion and using these methods but will be adequately capture the second relevant misunderstandings that we found in the adjusting as necessary given the population, i.e. appropriate potential earlier focus group phase of the study as COVID–19 pandemic and any other prescribers of ADF products for chronic well as in prior research FDA unforeseen factors. This project is an non-cancer pain. Commenter conducted. These data indicated pain FDA priority, and we will prioritize recommends that FDA focus on those management specialists already tend to rigorous methodology that ensures HCPs who specialize in chronic non- have considerable knowledge about and representativeness and robust data and cancer pain management, because these experience with ADFs, suggesting their evidence even if it means taking a little relatively few HCPs manage a feedback would likely be of limited more time. disproportionate volume of patients usefulness with respect to the study’s (Comment 13) Implement appropriate with chronic non-cancer pain and, key objectives. This is similarly the case honoraria to ensure feasibility and therefore, manage a disproportionate for ADF prescribers, which is the reason timely results. the study populations were purposely volume of current and appropriate (Response 13) The financial incentive potential prescriptions of ADF products inclusive of a broad cross-section of opioid prescribers. rates were based on going rates for for chronic non-cancer pain. incentives in provider panel surveys Suggestions: (Comment 10) Include a screening • The proposed threshold of 5 question with a list of ADF products to and on recent research on incentives for patients treated with opioids for chronic account for respondents’ lack of physician surveys. These will also non-cancer pain in a typical month is knowledge about which products are comport with those allowable by OMB. too low. A low threshold does not and are not ADF. In addition, our experience has shown ensure that pain specialists will be (Response 10) Thank you for the that the topic of this study—opioids and included, and evidence has shown that suggestion. Our recruitment screener the national crisis—and the fact that the the treatment of chronic non-cancer includes such a question, which asks research is being undertaken by FDA, pain with opioids has consolidated respondents to identify which of 17 the Federal agency responsible for under such pain specialists in recent different listed opioids they have regulating these products, are additional years. prescribed, including six abuse- incentives for participation. • Study should focus on HCPs who deterrent formulations that will not be FDA estimates the burden of this specialize in chronic non-cancer pain identified as such. The survey collection of information as follows:

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 124

Number of Number of Activity responses per Total annual Average burden Total hours respondents 3 respondent responses per response

Phase 2: Pretest screener .. 470 ...... 1 ...... 470 ...... 0.17 ...... 79.90 (10 minutes) ......

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TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 124—Continued

Number of Number of Total annual Average burden Activity 3 responses per Total hours respondents respondent responses per response

Pretest ...... 235 ...... 1 ...... 235 ...... 0.33 ...... 77.55 (20 minutes) ...... Survey screener .. 2,120 ...... 1 ...... 2,120 ...... 0.17 ...... 360.40 (10 minutes) ...... Survey ...... 1,060 ...... 1 ...... 1,060 ...... 0.33 ...... 349.80 (20 minutes) ...... Phase 3: Pretests screener 732 ...... 1 ...... 732 ...... 0.17 ...... 124.44 (10 minutes) ...... Pretests ...... 366 ...... 1 ...... 366 ...... 0.33 ...... 120.78 (20 minutes) ...... Main study 2,120 ...... 1 ...... 2,120 ...... 0.17 ...... 360.40 screener. (10 minutes) ...... Main study ...... 1,060 ...... 1 ...... 1,060 ...... 0.33 ...... 349.80 (20 minutes) ......

Total ...... 1,823.07 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 Includes total burden for project phases 2 and 3. 3 Includes 10 percent overage. 4 With online surveys, several participants may be in the process of completing the survey at the time that the total target sample is reached. Those participants will be allowed to complete the survey, which can result in the number of valid completes exceeding the target number. With this in mind, we have included an additional 10 percent over our target number of valid completes to account for some overage.

II. Reference ACTION: Notice. Abstract: The Sickle Cell Disease Treatment Demonstration Regional The following reference is on display SUMMARY: In compliance with of the Collaborative Program (SCDTDRCP) was with the Dockets Management Staff (see Paperwork Reduction Act of 1995, reauthorized by the Sickle Cell Disease ADDRESSES) and is available for viewing HRSA has submitted an Information and Other Heritable Blood Disorders by interested persons between 9 a.m. Collection Request (ICR) to the Office of Research, Surveillance, Prevention, and and 4 p.m., Monday through Friday; it Management and Budget (OMB) for Treatment Act of 2018 (Pub. L. 115– is not available electronically at https:// review and approval. Comments 327), which added section 1106 of the www.regulations.gov as this reference is submitted during the first public review Public Health Service Act, 42 U.S.C. copyright protected. of this ICR will be provided to OMB. 300b–5. The purpose of the proposed OMB will accept further comments from 1. Hwang, C.S., L.W. Turner, S.P. Quality Improvement (QI) and the public during the review and Kruszewski, et al. ‘‘Primary Care Physicians’ Performance Measures (N) data approval period. OMB may act on Knowledge and Attitudes Regarding collection is to evaluate the Prescription Opioid Abuse and Diversion.’’ HRSA’s ICR only after the 30-day effectiveness of the SCDTDRCP and how The Clinical Journal of Pain, 32(4), 279–284, comment period for this notice has the program can improve the 2016. closed. coordination of service delivery for Dated: June 30, 2020. DATES: Comments on this ICR should be individuals with sickle cell disease Lowell J. Schiller, received no later than August 6, 2020. (SCD), train health professionals to Principal Associate Commissioner for Policy. ADDRESSES: Written comments and increase access to quality care and [FR Doc. 2020–14516 Filed 7–6–20; 8:45 am] recommendations for the proposed collaborate with various stakeholders to BILLING CODE 4164–01–P information collection should be sent optimize health outcomes for within 30 days of publication of this individuals with SCD. The goals of the notice to www.reginfo.gov/public/do/ SCDTDRCP are to improve health DEPARTMENT OF HEALTH AND PRAMain. Find this particular outcomes in individuals with SCD; HUMAN SERVICES information collection by selecting reduce morbidity and mortality caused ‘‘Currently under Review—Open for by SCD; reduce the number of Health Resources and Services Public Comments’’ or by using the Administration individuals with SCD receiving care search function. only in emergency departments; and Agency Information Collection FOR FURTHER INFORMATION CONTACT: To improve the quality of coordinated and Activities: Submission to OMB for request a copy of the clearance requests comprehensive services to individuals Review and Approval; Public Comment submitted to OMB for review, email Lisa with SCD and their families. The Request; Information Collection Wright-Solomon, the HRSA Information program funds five grantees to establish Request Title: Sickle Cell Disease Collection Clearance Officer at regional networks to provide leadership Treatment Demonstration Regional [email protected] or call (301) 443– and support for regional and statewide Collaborative Program, OMB No. 0906– 1984. activities in SCD. The grantees develop xxxx—New SUPPLEMENTARY INFORMATION: and establish systemic mechanisms to Information Collection Request Title: improve the treatment of SCD, by: (1) AGENCY: Health Resources and Services Sickle Cell Disease Treatment Increasing the number of providers Administration (HRSA), Department of Demonstration Regional Collaborative treating individuals with SCD using the Health and Human Services. Program, OMB No. 0906–xxxx—New. National Heart, Lung and Blood

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Institute Evidence-Based Management Quality Improvement provider in the past year). The five of SCD Expert Panel Report; (2) using All five SCDTDRCP grantees are SCDTDRCP grantees will send a survey tele-mentoring, telemedicine and other required to conduct QI initiatives to once a year to providers they work with provider support strategies to increase improve quality of SCD treatment and within their region who provide care to the number of providers administering access to care. Each grantee also works SCD patients to collect PM data. Once evidence-based sickle cell care; and (3) with and supports local sites (i.e., the providers complete the survey, the developing and implementing strategies university, medical center, etc.) that grantees will aggregate the individual to improve access to quality care with provide SCD care within their region to responses and submit the PM data to the emphasis on individual and family implement QI initiatives. All the NCC. engagement/partnership, adolescent grantees and local sites are required to Likely Respondents: For QI data, the transitions to adult life, and care in a implement initiatives to increase the five SCDTDRCP grantees and local sites medical home. Per the statutory hydroxyurea use and conduct one or that provide SCD care that the grantees requirement, the data collected will be more additional QI initiatives on the work with. For PM data, the five used to evaluate the program and will following topics: pneumococcal SCDTDRCP grantees and providers the be published in a report to Congress. vaccinations, Transcranial Doppler grantees work with within their region A 60-day notice published in the screening, and transition planning. The who provide care to SCD patients. Federal Register on January 23, 2020, grantees and local sites will collect data on a quarterly basis on applicable Burden Statement: Burden in this vol. 85, No. 15; pp. 3935–37. There were context means the time expended by no public comments. measures depending on which QI initiatives they are undertaking. The persons to generate, maintain, retain, Need and Proposed Use of the data will be extracted from patients’ disclose or provide the information Information: The purpose of the charts either via chart reviews or requested. This includes the time proposed QI and PM data collection is electronic health records. The local sites needed to review instructions; to to evaluate the effectiveness of the will send their data to the grantees using develop, acquire, install, and utilize SCDTDRCP and how the program can an excel spreadsheet or by entering data technology and systems for the purposes improve the coordination of service into a database form of their choice of collecting, validating, and verifying delivery for individuals with sickle cell developed by the grantee. The grantees information, processing and disease, train health professionals to will aggregate their own data and the maintaining information, and disclosing increase access to quality care and data received from the local sites and and providing information; to train collaborate with various stakeholders to submit the aggregate data to the NCC. personnel and to be able to respond to optimize health outcomes for a collection of information; to search individuals with sickle cell disease. Performance Measures data sources; to complete and review Pursuant to 42 U.S.C. 300b–5(b)(3)(B), In order to understand SCD care the collection of information; and to the National Coordinating Center (NCC) provided and the reach of the transmit or otherwise disclose the will work with the grantees to gather SCDTDRCP activities across regions, information. The total annual burden data and prepare a Report to Congress seven PM have been established (e.g. hours estimated for this ICR are at the conclusion of the program. number of SCD patients seen by a summarized in the tables below:

TOTAL ESTIMATED ANNUALIZED BURDEN—HOURS

Number of Average Number of responses per Total burden per Total burden Form name respondents respondent responses response hours per year per year per year (hrs/yr)

SCDTDRCP ...... Quality Improvement Measures* ...... 55 4 220 13 2,860 SCDTDRCP Performance Measures ...... 305 1 305 1 305

Total ...... 360 ...... 525 ...... 3,165 * Note: Total burden hours per year shown represents the maximum number of estimated hours. Actual hours may be lower since many of the respondents may not be collecting data all QI initiatives.

Maria G. Button, DEPARTMENT OF HEALTH AND SUMMARY: This document updates the Director, Executive Secretariat. HUMAN SERVICES March 30, 2020, Federal Register Notice [FR Doc. 2020–14612 Filed 7–6–20; 8:45 am] entitled ‘‘Notice of Designation of Office of the Secretary BILLING CODE 4165–15–P Scarce Materials or Threatened Materials Subject to COVID–19 Notice of Designation of Scarce Hoarding Prevention Measures,’’ by Materials or Threatened Materials Subject to COVID–19 Hoarding replacing the named contact and Prevention Measures; Change in updating the ‘‘Notice of Designation of Information Contact, Removal of Scarce Materials or Threatened Chloroquine Phosphate and Materials’’ section. Hydroxychloroquine HCl; Correction FOR FURTHER INFORMATION CONTACT: AGENCY: Office of the Secretary (OS), Paige Ezernack, Office of the Assistant DHHS. Secretary for Preparedness and Response, Office of Strategy, Policy, ACTION: Notice; correction. Planning, and Requirements, Suite

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5440—O’Neill House Office Building, Training Programs for Institutions that Dated: June 30, 2020. 200 C Street SW, Washington, DC Promote Diversity (T32). Ronald J. Livingston, Jr., 20201, (202) 260–0365. Date: August 5, 2020. Time: 11:00 a.m. to 12:30 p.m. Program Analyst, Office of Federal Advisory SUPPLEMENTARY INFORMATION: Agenda: To review and evaluate grant Committee Policy. [FR Doc. 2020–14478 Filed 7–6–20; 8:45 am] I. Background applications. Place: National Institutes of Health, 6705 BILLING CODE 4140–01–P In FR Doc. 2020–06641 of March 30, Rockledge Drive, Bethesda, MD 20814 2020 (85 FR 17592–17593), the contact (Telephone Conference Call). for more information is now aspr.dpa@ Contact Person: Zhihong Shan, Ph.D., MD, Scientific Review Officer, Office of Scientific DEPARTMENT OF HEALTH AND hhs.gov. Chloroquine phosphate and Review/DERA, National Heart, Lung, and HUMAN SERVICES hydroxychloroquine HCl are no longer Blood Institute, National Institutes of Health, listed as scarce or threatened materials 6705 Rockledge Drive, Room 205–J, National Institutes of Health following the withdrawal of the FDA Bethesda, MD 20892, 301–827–7985, emergency use authorizations for these [email protected]. National Cancer Institute; Notice of drugs on June 15, 2020. Name of Committee: National Heart, Lung, Closed Meeting and Blood Institute Special Emphasis Panel; II. Correction of Errors Catalyze: Enabling Technologies. Pursuant to section 10(d) of the In FR Doc. 2020–06641 of March 30, Date: August 6, 2020. Federal Advisory Committee Act, as 2020 (85 FR 17592–17593), make the Time: 1:00 p.m. to 3:00 p.m. amended, notice is hereby given of the Agenda: To review and evaluate grant following meeting. following corrections: applications. On page 17592, first full column, in Place: National Institutes of Health, The meetings will be closed to the FR Doc. 2020–06641, Further Rockledge I, 6705 Rockledge Drive, Bethesda, public in accordance with the Information section, change Bryan MD 20814 (Telephone Conference Call). provisions set forth in sections Shuy: 202–703–8610; bryan.shuy@ Contact Person: Kristin Goltry, Ph.D., 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., hhs.gov (mail to: [email protected]) Scientific Review Officer, Office of Scientific as amended. The contract proposals and to the ASPR DPA Office: 202–838–3420; Review/DERA, National Heart, Lung, and Blood Institute, National Institutes of Health, the discussions could disclose [email protected]. 6705 Rockledge Drive, Room 209–B, confidential trade secrets or commercial On page 17593, first column, in FR Bethesda, MD 20892, (301) 435–0297, property such as patentable material, Doc. 2020–06641, Notice of Designation [email protected]. and personal information concerning of Scarce Materials or Threatened Name of Committee: National Heart, Lung, individuals associated with the contract Materials, remove ‘‘Drug product with and Blood Institute Special Emphasis Panel; proposals, the disclosure of which active ingredient chloroquine phosphate Stimulating Access to Research in Residency would constitute a clearly unwarranted or hydroxychloroquine HCl.’’ (StARR). invasion of personal privacy. Date: August 21, 2020. Dated: June 30, 2020. Time: 10:00 a.m. to 6:00 p.m. Name of Committee: National Cancer Wilma Robinson, Agenda: To review and evaluate grant Institute Special Emphasis Panel; Tools to Deputy Executive Secretary, Department of applications. Address COVID–19 Pandemic. Health and Human Services. Place: National Institutes of Health, Date: July 27, 2020. [FR Doc. 2020–14525 Filed 7–6–20; 8:45 am] Rockledge I, 6705 Rockledge Drive, Time: 10:00 a.m. to 5:00 p.m. Rockville, MD 20892 (Telephone Conference Agenda: To review and evaluate contract BILLING CODE 4150–37–P Call). proposals. Contact Person: Kristen Page, Ph.D., Scientific Review Officer, Office of Scientific Place: National Cancer Institute, 9609 DEPARTMENT OF HEALTH AND Review/DERA, National Heart, Lung, and Medical Center Drive, Room 7W608, HUMAN SERVICES Blood Institute, National Institutes of Health, Rockville, MD 20850 (Telephone Conference 6705 Rockledge Drive, Room 209–B, Call). National Institutes of Health Bethesda, MD 20892, (301) 827–7953, Contact Person: Nadeem Khan, Ph.D., [email protected]. Scientific Review Officer, Research National Heart, Lung, and Blood Name of Committee: National Heart, Lung, Technology and Contract Review Branch, Institute; Notice of Closed Meetings and Blood Institute Special Emphasis Panel; Division of Extramural Activities, National Bench to Bassinet Coordinating Center. Cancer Institute, NIH, 9609 Medical Center Pursuant to section 10(d) of the Date: August 21, 2020. Drive, Room 7W608, Rockville, MD 20850, Federal Advisory Committee Act, as Time: 3:00 p.m. to 4:00 p.m. 240–276–5856, [email protected]. amended, notice is hereby given of the Agenda: To review and evaluate grant following meetings. applications. (Catalogue of Federal Domestic Assistance The meetings will be closed to the Place: National Institutes of Health, Program Nos. 93.392, Cancer Construction; public in accordance with the Rockledge I, 6705 Rockledge Drive, Bethesda, 93.393, Cancer Cause and Prevention Research; 93.394, Cancer Detection and provisions set forth in sections MD 20892 (Telephone Conference Call). Contact Person: Tony L. Creazzo, Ph.D., Diagnosis Research; 93.395, Cancer 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Scientific Review Officer, Office of Scientific Treatment Research; 93.396, Cancer Biology as amended. The grant applications and Review/DERA, National Heart, Lung, and Research; 93.397, Cancer Centers Support; the discussions could disclose Blood Institute, National Institutes of Health, 93.398, Cancer Research Manpower; 93.399, confidential trade secrets or commercial 6705 Rockledge Drive, Room 207–Q, Cancer Control, National Institutes of Health, Bethesda, MD 20892–7924, (301) 827–7913, property such as patentable material, HHS) and personal information concerning [email protected]. individuals associated with the grant (Catalogue of Federal Domestic Assistance Dated: June 30, 2020. applications, the disclosure of which Program Nos. 93.233, National Center for Melanie J. Pantoja, Sleep Disorders Research; 93.837, Heart and would constitute a clearly unwarranted Program Analyst, Office of Federal Advisory Vascular Diseases Research; 93.838, Lung Committee Policy. invasion of personal privacy. Diseases Research; 93.839, Blood Diseases Name of Committee: National Heart, Lung, and Resources Research, National Institutes [FR Doc. 2020–14480 Filed 7–6–20; 8:45 am] and Blood Institute Special Emphasis Panel; of Health, HHS) BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND an agenda and any additional information for technical difficulties, contact Mr. Ryan HUMAN SERVICES the meeting will be posted when available. Owens at (202)302–6565. (Catalogue of Federal Domestic Assistance For information on services for National Institutes of Health Program Nos. 93.271, Alcohol Research individuals with disabilities, or to Career Development Awards for Scientists request special assistance, contact the National Institute on Alcohol Abuse and Clinicians; 93.272, Alcohol National individual listed in FOR FURTHER and Alcoholism; Notice of Meeting Research Service Awards for Research INFORMATION CONTACT below as soon as Training; 93.273, Alcohol Research Programs; possible. Pursuant to section 10(d) of the 93.891, Alcohol Research Center Grants; 93.701, ARRA Related Biomedical Research Instructions: You are free to submit Federal Advisory Committee Act, as comments at any time, including orally amended, notice is hereby given of a and Research Support Awards., National Institutes of Health, HHS) at the teleconference as time permits, meeting of the National Advisory but if you want Committee members to Council on Alcohol Abuse and Dated: June 30, 2020. review your comment before the Alcoholism. Melanie J. Pantoja, teleconference, please submit your The meeting will be held as a virtual Program Analyst, Office of Federal Advisory comments no later than July 15, 2020. meeting and is open to the public as Committee Policy. We are particularly interested in indicated below. Individuals who plan [FR Doc. 2020–14479 Filed 7–6–20; 8:45 am] comments on the issues in the to view the virtual meeting and need BILLING CODE 4140–01–P ‘‘Agenda’’ section below. We special assistance or other reasonable encouraged you to submit comments accommodations to view the meeting, through Federal eRulemaking Portal at should notify the Contact Person listed DEPARTMENT OF HOMELAND https://regulations.gov. If your material below in advance of the meeting. The SECURITY cannot be submitted using https:// open session will be videocast and can regulations.gov, call or email the be accessed from the NIH Videocasting Coast Guard individual in the FOR FURTHER and Podcasting website (http:// INFORMATION CONTACT section of this videocast.nih.gov/). [Docket No. USCG–2020–0313] document for alternate instructions. You A portion of the meeting will be National Maritime Security Advisory must include the docket number closed to the public in accordance with Committee [USCG–2020–0313]. Comments received the provisions set forth in sections will be posted without alteration at 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., AGENCY: U.S. Coast Guard, Department https://www.regulations.gov including as amended. The grant applications and of Homeland Security. any personal information provided. For the discussions could disclose ACTION: Notice of Federal Advisory more about privacy submissions in confidential trade secrets or commercial Committee teleconference meeting. response to this document, see DHS’s property such as patentable material, eRulemaking System Records notice (85 and personal information concerning SUMMARY: The National Maritime FR 14226, March 11, 2020). If you individuals associated with the grant Security Advisory Committee encounter technical difficulties with applications, the disclosure of which (Committee) will meet via comment submission, contact the would constitute a clearly unwarranted teleconference, to review and discuss individual listed in the FOR FURTHER invasion of personal privacy. the Coast Guard’s efforts to develop the INFORMATION CONTACT section of this Maritime Cyber Risk Analysis Model notice. Name of Committee: National Advisory Docket Search: Documents mentioned Council on Alcohol Abuse and Alcoholism. and updates to the Navigation and Date: September 10, 2020. Vessel Inspection Circular 03–03. This in this notice as being available in the Closed: 12:00 p.m. to 12:50 p.m. teleconference will be open to the docket, and all public comments, will Agenda: To review and evaluate grant public. be in our online docket at https:// www.regulations.gov, and can be viewed applications. DATES: Open: 1:00 p.m. to 4:30 p.m. by following that website’s instructions. Agenda: Presentations and other business Meeting: The Committee will meet by teleconference on Wednesday, July 29, Additionally, if you go to the online of the Council. docket and sign-up for email alerts, you Place: National Institutes of Health, 2020 from 1:00 p.m. until 3:00 p.m. This teleconference may close early if all will be notified when comments are National Institute on Alcohol Abuse and posted. Alcoholism, 6700B Rockledge Drive, business is finished. Bethesda, MD 20817 (Virtual Meeting). Comments and supporting FOR FURTHER INFORMATION CONTACT: Mr. Contact Person: Abraham P. Bautista, documentation: To ensure your Ryan Owens, Alternate Designated Ph.D., Executive Secretary, National comments are received by Committee Federal Officer of the National Maritime Advisory Council, Director, Office of members before the teleconference, Security Advisory Committee, 2703 Extramural Activities, National Institute on Martin Luther King Jr. Avenue SE, Alcohol Abuse and Alcoholism, National submit your written comments no later Institutes of Health, 6700 B Rockledge Drive, than July 15, 2020. Washington, DC 20593, Stop 7581, Room 1458, MSC 6902, Bethesda, MD 20892, ADDRESSES: The teleconference will be Washington, DC 20593–7581; telephone 301–443–9737, [email protected]. broadcasted via a web enabled 202–372–1108 or email ryan.f.owens@ Any interested person may file written interactive online format and uscg.mil. comments with the committee by forwarding teleconference line. To participate via SUPPLEMENTARY INFORMATION: Notice of the statement to the Contact Person listed on teleconference, dial 1–202–475–4000; this meeting is in compliance with the this notice. The statement should include the the pass code to join is 812 197 73#. Federal Advisory Committee Act, (5 U. name, address, telephone number and when Additionally, if you would like to S. C., Appendix 2). The National applicable, the business or professional affiliation of the interested person. participate in this teleconference via the Maritime Security Advisory Committee Information is also available on the online web format, please log onto operates under Section 70112 of the Institute’s/Center’s home page http:// https://share.dhs.gov/nmsac/ and Maritime Transportation Security Act of www.niaaa.nih.gov/AboutNIAAA/ follow the online instructions to register 2002 (MTSA) (Pub. L. 107–295, AdvisoryCouncil/Pages/default.aspx, where for this meeting. If you encounter November 25, 2002, as codified in 46

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U.S.C. Chapter 701, 46 U.S.C. 70101 et INFORMATION CONTACT section above to 25–904–0190, 25–905–0170, 25–905– seq.). This Committee will advise the register as a speaker. 0180, 25–905–0190, 25–905–0200, 25– Secretary of the Department of Dated: June 24, 2020. 932–0160, 25–932–0170, 25–932–0171, 25–932–0172, 25–932–0173, 25–933– Homeland Security, via the Wayne Arguin, Commandant of the U.S. Coast Guard, 0010, 25–933–0011, 25–933–0012, 25– Captain, U.S. Coast Guard, Director of 933–0013, 25–933–0015, 25–933–0016, on matters relating to national maritime Inspections and Compliance. security, including on enhancing the 25–933–0020, 25–933–0030, 25–933– sharing of information related to [FR Doc. 2020–14571 Filed 7–6–20; 8:45 am] 0060, 25–933–0061, 25–933–0062. BILLING CODE 9110–04–P cybersecurity risks that may cause a HECKER Parcel 1 transportation security incident, between relevant Federal agencies and That part of Government Lot 3, State, local, and tribal governments; DEPARTMENT OF THE INTERIOR Section 32, Township 115 North, Range relevant public safety and emergency 22 West of the 5th P.M., Scott County, Bureau of Indian Affairs response agencies; relevant law Minnesota, which lies southerly of enforcement and security organizations; [201A2100DD/AAKC001030/ Registered Land Survey No. 153, and maritime industry; port owners and A0A51010.999900] easterly of the Plat of Howard Lake operators; and terminal owners and Estates, according to the United States operators Proclaiming Certain Lands as Government Survey thereof and situate Reservation for the Shakopee in Scott County, Minnesota. Agenda Mdewakanton Sioux Community of AND (1) Call to Order. Minnesota (2) Opening Remarks. That part of Lot 1, Block 1, Howard AGENCY: Bureau of Indian Affairs, Lake Estates, described as commencing (3) Maritime Cybersecurity Risk Interior. Analysis Model. at the Northeast corner of said Lot 1; ACTION: Notice of reservation thence on an assumed bearing of South The Coast Guard is working on the proclamation. 3 degrees 38 minutes 22 seconds West, Maritime Cyber Risk Analysis Model. along the east line of said Lot 1, a As per the section 601 of the Frank SUMMARY: This notice informs the public distance of 115.97 feet to the actual LoBiondo Coast Guard Authorization that the Assistant Secretary—Indian point of beginning of the land to be Act of 2018 (CGAA18), Public Law 115– Affairs proclaimed approximately described; thence South 26 degrees 02 282, 132 Stat. 4192, the Committee will 218.65 acres, more or less, an addition minutes 55 seconds West a distance of be tasked with reviewing the work to to the reservation of the Shakopee 75.05 feet; thence South 56 degrees 08 date and assisting the Coast Guard in Mdewakanton Sioux Community on minutes 26 seconds East a distance of further development of the model. June 10, 2020. 33.11 feet to the east line of said Lot 1; (4) Navigation and Vessel Inspection FOR FURTHER INFORMATION CONTACT: Ms. thence North 3 degrees 38 minutes 22 Circular Number 03–03, Change 3. Sharlene M. Round Face, Bureau of seconds East, along the east line of said The Coast Guard is in the process of Indian Affairs, Division of Real Estate Lot 1, a distance of 86.05 feet to the updating to Navigation and Vessel Services, 1001 Indian School Road NE, actual point of beginning, according to Inspection Circular Number 03–03, Box #44, Albuquerque, New Mexico the recorded plat thereof, and situate in Change 2, Implementation Guidance for 87111, telephone (505) 563–3132. Scott County, Minnesota. the Regulations Mandated by the SUPPLEMENTARY INFORMATION: This Being registered land as is evidenced Maritime Transportation Security Act of notice is published in the exercise of by Certificate of Title No. 43938. 2002 (MTSA) for Facilities. Change 3 authority delegated by the Secretary of HECKER Parcel 2 will provide further clarity and the Interior to the Assistant Secretary— guidance for the implementation of the Indian Affairs by part 209 of the That part of Government Lot 4, maritime security regulations mandated Departmental Manual. Section 32, Township 115 North, Range by the MTSA as amended by the A proclamation was issued according 22 West of the 5th P.M., Scott County, CGAA18 and the Security and to the Act of June 18, 1934 (48 Stat. 984; Minnesota and that part of Government Accountability for Every Port Act of 25 U.S.C. 5110) for the lands described Lot 1 Section 5, Township 114 North, 2006 (Pub. L. 109–347; 120 Stat. 1884). below. The land was proclaimed to be Range 22 West of the 5th P.M., Scott (5) Public comment period. the Shakopee Reservation for the County, Minnesota, lying Northerly and (6) Closing Remarks. Shakopee Mdewakanton Sioux Westerly of the following described line: (7) Adjournment of meeting. Community of Minnesota, Scott County, Beginning at a point on the East line of A copy of all meeting documentation and State of Minnesota. said Government Lot 4, distant 323.60 will be available at https:// feet South of the Northeast corner of homeport.uscg.mil/NMSAC by July 15, Shakopee Reservation for the Shakopee said Lot 4, thence deflecting to the right 2020. Alternatively, you may contact Mdewakanton Sioux Community of (as measured south to west) at an angle Mr. Ryan Owens as noted in the FOR Minnesota of 98 degrees 44 minutes 00 seconds, a FURTHER INFORMATION section above. 1 Parcel distance of 380.43 feet; thence in a There will be a public comment southwesterly direction a distance of period at the end of the meeting. Fifth Principal Meridian, Scott County, 2347.11 feet to a point on the westerly Speakers are requested to limit their Minnesota extension of the South line of said comments to 3 minutes and keep their Legal Descriptions Containing 218.65 Government Lot 1, distance 544.40 feet remarks to the topic of the Maritime Acres, More or Less west of the Southeast corner thereof and Cyber Risk Analysis Model. Please note there terminating, according to the Inyan Ceyaka Otonwe (ICO) Parcel, 411 that the public comment period may United States Government Survey T 1027 end before the period allotted, following thereof and situate in Scott County, the last call for comments. Contact the Parcel ID Numbers: 25–204–0011, 25– Minnesota. individual listed in the FOR FURTHER 904–0160, 25–904–0170, 25–904–0180, Abstract Property.

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AND the North 26.66 (or 440 feet) thereof; degrees 12 minutes 12 seconds East SAKUMA Parcel 1 and the East 33 rods of the Northeast (assumed bearing) along the south line Quarter of the Southwest Quarter of said Southwest Quarter of the The North One-Half of the Southwest EXCEPT the North 26.66 rods (or 440 Southwest Quarter a distance of 1135.15 Quarter (N 1⁄2 of SW 1⁄4) of Section 33, feet thereof); all in Section 33, feet to the west line of the east 198.00 Township 115 North, Range 22 West of Township 115 North, Range 22 West of feet of said Southwest Quarter of the the Fifth Principal Meridian, Scott the Fifth Principal Meridian, Scott Southwest Quarter; thence northerly County, Minnesota, EXCEPT the County, Minnesota. Together with a along said west line of the east 198.00 following described tracts: perpetual easement for ingress and feet a distance of 744 feet more of less Tract 1: A tract on the West side of the egress for both pedestrian and vehicular to the centerline of County Road No. 81; Northwest Quarter of the Southwest travel, and for construction and thence northwesterly along said Quarter, said tract to be 2 rods wide and maintenance of a roadway and of utility centerline to its intersection with a line 40 rods more or less in length beginning installations over and across the North drawn North 43 degrees 22 minutes 02 at the Northwest corner of said 33 feet of the East Half of the Northwest seconds East from the point of Southwest Quarter and running south Quarter of the Southeast Quarter of beginning; thence South 43 degrees 22 along said west line of said Southwest Section 33, Township 115 North, Range minutes 02 seconds West a distance of Quarter until it intersects the Shakopee 22 West of the Fifth Principal Meridian, 1276.41 feet to the point of beginning. and Spring Lake Road, the same to be Scott County, Minnesota. Abstract Property. used for road purposes, all in Section Abstract Property. MENDEN2 Parcel C 33, Township 115 North, Range 22 West of the fifth Principal Meridian, Scott AND That part of the Northwest Quarter of County, Minnesota. MICKO Parcel the Northwest Quarter of Section 4, Tract 2: A tract of land in the Township 114 North, Range 22 West of The Easterly 180 feet of that part of Southwest Quarter of Section 33, the Fifth Principal Meridian, Scott the SW1 4 1 4 Township 115 North, Range 22 West of ⁄ of the SW ⁄ of Section 33, County, Minnesota described as follows: the Fifth Principal Meridian, Scott Township 115 North, Range 22 West of Beginning at the northwest corner of County, Minnesota, described as the Fifth Principal Meridian, Scott the east 132.00 feet of said Northwest follows: Commencing at the Northwest County, Minnesota, according to the Quarter of the Northwest Quarter; corner of said Section 33; thence South United States Government Survey thence southerly along the west line of along the West line of said Section 33, thereof and situate in Scott County, said east 132.00 feet a distance of 66.00 2939.6 feet to the actual point of Minnesota, lying Northerly of the center feet to the south line of the north 66.00 beginning, thence continuing South line of County Road No. 14 as now laid feet of said Northwest Quarter of the 401.4 feet to the north right of way of out. Northwest Quarter; thence South 89 Abstract Property. County Road 10; thence Southeasterly degrees 12 minutes 12 seconds West along said right of way 108.0 feet; AND along said south line of the north 66.00 feet a distance of 476.74 feet; thence thence Northeasterly at right angles to MENDEN2 Parcel A said County Road 10, 105.0 feet; thence South 00 degrees 31 minutes 54 seconds Northwesterly parallel to said County That part of the Southwest Quarter of East a distance of 320.00 feet; thence Road 10, 492.4 feet to the actual point the Southwest Quarter of Section 33, South 4 degrees 06 minutes 06 seconds of beginning. Township 115 North, Range 22 West of West a distance of 913.98 feet to the Tract 3: The North 26.66 rods (or 440 the Fifth Principal Meridian, Scott south line of said Northwest Quarter of feet) of the North Half of the Southwest County, Minnesota, lying southwesterly the Northwest Quarter; thence south 88 Quarter, Section 33, Township 115 of the public road (formerly County degrees 57 minutes 29 seconds West North, Range 22 West of the Fifth Road 81); and northwesterly of the along said south line of the Northwest Principal Meridian, Scott County, following described line: Commencing Quarter of the Northwest Quarter a Minnesota. at the northwest corner of said distance of 230.69 feet to a point distant Tract 4: The East 33 rods of the South Southwest Quarter of the Southwest 913.29 feet west of the southeast corner 53.34 rods of the Northeast Quarter of Quarter; thence South 01 degree 32 of said Northwest Quarter of the the Southwest Quarter of Section 33, minutes 24 seconds East, assumed Northwest Quarter; thence North 00 Township 115 North, Range 22 West of bearing, along the west line of said degrees 14 minutes 57 seconds West a the Fifth Principal Meridian, Scott Southwest Quarter of the Southwest distance of 913.06 feet; thence North 00 County, Minnesota. Quarter a distance of 323.60 feet to the degrees 31 minutes 54 seconds West a Abstract Property. point of beginning of the line to be distance of 384.61 feet to the north line described; thence North 43 degrees 24 of said Northwest Quarter of the SAKUMA Parcel 2 minutes 42 seconds East to the north Northwest Quarter; thence easterly All that part of the Southwest Quarter line of said Southwest Quarter of the along said north line a distance of of the Southwest Quarter (SW1⁄4 of Southwest Quarter and there 776.74 feet to the point of beginning. SW1⁄4) of Section 33, Township 115 terminating. Together with that part of the west 66.00 North, Range 22 West of the Fifth Abstract Property. feet of the east 198.00 feet of the Principal Meridian, Scott County, MENDEN2 Parcel B Southwest Quarter of the Southwest Minnesota, lying Northerly of County Quarter of Section 33, Township 115 Road 81, as now located, except the East That part of the Southwest Quarter of North, Range 22 West of the Fifth 180 feet thereof. the Southwest Quarter of Section 33, Principal Meridian, Scott County, Abstract Property. Township 11 North, Range 22 West of Minnesota. the Fifth Principal Meridian, Scott Abstract Property. SAKUMA Parcel 3 County, Minnesota described as follows: The West Half of the Northwest Beginning at the southwest corner of MENDEN2 Parcel E Quarter of the Southeast Quarter said Southwest Quarter of the That part of the Northwest Quarter of EXCEPT the West Thirty-six (36) rods of Southwest Quarter; thence North 89 the Northwest Quarter of Section 4,

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Township 114 North, Range 22 West of Government Lot 4 to and along the southeast corner of said Southwest the Fifth Principal Meridian, Scott centerline of County Road No. 81. Quarter of the Southwest Quarter, the County, Minnesota and that part of Abstract Property. same being the northeast corner of said Government Lot 1, Section 5, Township MENDEN2 Parcel G Northwest Quarter of the Northwest 114 North, Range 22 West of the Fifth Quarter; thence southerly along the east Principal Meridian, Scott County, The land referred to is situated in the line of said Northwest Quarter of the Minnesota described as follows: State of Minnesota, County of Scott, and Northwest Quarter to the point of Beginning at the northwest corner of is described as that part of the beginning. the east 66.00 feet of said Government Southwest Quarter of the Southwest Abstract Property. Lot 1; thence southerly along the west Quarter of Section 33, Township 115 MENDEN2 Parcel I line of said east 66.00 feet to the south North, Range 22 West of the Fifth line of the north 66.00 feet of said Principal Meridian, Scott County, That part of Government Lot 1, Government Lot 1; thence easterly along Minnesota described as follows: Section 5, Township 114 North, Range said south line of the north 66.00 feet a Beginning at the southwest corner of 22 West of the Fifth Principal, Scott distance of 66.00 feet to the east line of said Southwest Quarter of the County, Minnesota and that part of the said Government Lot 1, the same being Southwest Quarter; thence North 01 Northwest Quarter of the Northwest the west line of said Northwest Quarter degrees 32 minutes 24 seconds West Quarter of Section 4, Township 114 of the Northwest Quarter; thence (assumed bearing) along the west line of North, Range 22 West of the Fifth easterly along the south line of the north said Southwest Quarter of the Principal, Scott County, Minnesota 66.00 feet of said Northwest Quarter of Southwest Quarter a distance of 696.79 described as follows: the Northwest Quarter a distance of feet; thence North 43 degrees 24 Beginning at the northwest corner of 124.24 feet; thence southerly a distance minutes 42 seconds East a distance of the east 66.00 feet of said Government of 1232.90 feet to a point on the south 679 feet more or less to the centerline Lot 1; thence southerly along the west line of said Northwest Quarter of the of County Road No. 81; thence line of said east 66.00 feet to the south Northwest Quarter distant 121.16 feet southeasterly along said centerline to its line of the north 66.00 feet of said east of the southwest corner; thence intersection with a line drawn North 43 Government Lot 1; thence easterly along North 88 degrees 57 minutes 29 seconds degrees 22 minutes 02 seconds East said south line of the north 66.00 feet a East along said south line a distance of from the point of beginning; thence distance of 66.00 feet to the east line of 295.51 feet to a point distant 913.29 feet South 43 degrees 22 minutes 02 seconds said Government Lot 1, the same being west of the southeast corner of said West a distance of 1276.41 feet to the the west line of said Northwest Quarter Northwest Quarter of the Northwest point of beginning. of the Northwest Quarter; thence Quarter; thence North 00 degrees 14 Abstract Property. easterly along the south line of the north 66.00 feet of said Northwest Quarter of minutes 57 seconds West a distance of MENDEN2 Parcel H 913.06 feet; thence North 00 degrees 31 the Northwest Quarter a distance of minutes 54 seconds West a distance of That part of the Northwest Quarter of 124.24 feet; thence southerly a distance 384.61 feet to the north line of said the Northwest Quarter of Section 4, of 1232.90 feet to a point on the south Northwest Quarter of the Northwest Township 114 North, Range 22 West of line of said Northwest Quarter of the Quarter; thence westerly along said the Fifth Principal Meridian, Scott Northwest Quarter distant 121.16 feet north line a distance of 424.41 feet to County, Minnesota and that part of the east of the southwest corner; thence the northwest corner of said Northwest Southwest Quarter of the Southwest westerly along said south line a distance Quarter of the Northwest Quarter; Quarter of Section 33, Township 115 of 121.16 feet to said southwest corner; thence westerly along the north line of North, Range 22 West of the Fifth thence South 88 degrees 24 minutes 26 said Government Lot 1, a distance of Principal Meridian, Scott County, seconds West along the south line of 66.00 feet to the point of beginning. Minnesota described as follows: said Government Lot 1, a distance of Together with that part of Beginning at the southeast corner of 184.42 feet; thence North 00 degrees 31 Government Lot 4, Section 32, said Northwest Quarter of the Northwest minutes 54 seconds West a distance of Township 115 North, Range 22 West of Quarter; thence South 88 degrees 57 1233.15 feet to the south line of the the Fifth Principal Meridian, Scott minutes 29 seconds West along the north 66.00 feet of said Government Lot County, Minnesota and that part of the south line of said Northwest Quarter of 1; thence easterly along said south line Southwest Quarter of the Southwest the Northwest Quarter a distance of a distance of 49.34 feet to the west line Quarter of Section 33, Township 115 398.94 feet; thence North 00 degrees 16 of the east 132.00 feet of said North, Range 22 West of the Fifth minutes 39 seconds West a distance of Government Lot 1; thence northerly Principal Meridian, Scott County, 721.64 feet; thence North 35 degrees 58 along the west line of said east 132.00 Minnesota described as follows: minutes 57 seconds East a distance of feet a distance of 66.00 feet to the north A strip of land 66.00 feet in width the 554.13 feet to the west line of the east line of said Government Lot 1; thence west and northwesterly line of which is 66.00 feet of said Northwest Quarter of easterly along the north line of said described as follows: Beginning at the the Northwest Quarter; thence northerly Government Lot 1, a distance of 66.00 southwest corner of the east 66.00 feet along said west line of the east 66.00 feet to the point of beginning. of said Government Lot 4; thence North feet to the north line of said Northwest Together with that part of 1 degree 32 minutes 24 seconds West Quarter of the Northwest Quarter; Government Lot 4, Section 32, along the west line of said east 66.00 thence northerly along the west line of Township 115 North, Range 22 West of feet a distance of 724.26 feet; thence the east 66.00 feet of said Southwest the Fifth Principal Meridian, Scott North 43 degrees 24 minutes 42 seconds Quarter of the Southwest Quarter a County, Minnesota and that part of the East a distance of 697.80 feet to the distance of 612.25 feet to the centerline Southwest Quarter of the Southwest centerline of County Road No. 81 and of County Road No. 81; thence Quarter of Section 33, Township 115 there terminating. The side line of said southeasterly along said centerline to North, Range 22 West of the Fifth tract shall be extended or shortened as the east line of said Southwest Quarter Principal Meridian, Scott County, required to provide a full 66.00 feet of the Southwest Quarter; thence Minnesota described as follows: A strip width from the south line of southerly along said east line to the of land 66.00 feet in width the west and

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northwesterly line of which is described A strip of land 66.00 feet in width the North, Range 22 West of the Fifth as follows: easterly and southeasterly line of which Principal Meridian, Scott County, Beginning at the southwest corner of is described as follows: Beginning at the Minnesota lying southerly of the the east 132.00 feet of said Government southwest corner of the east 132.00 feet centerline of County Road No. 81. Lot 4; thence North 1 degree 32 minutes of said Government Lot 4; thence North Abstract Property. 24 seconds West along the west line of 01 degree 32 minutes 24 seconds West said east 132.00 feet a distance of 751.74 along the west line of said east 132.00 MENDEN2 Parcel L feet; thence North 43 degrees 24 feet a distance of 751.74 feet; thence That part of Government Lot 4, minutes 42 seconds East a distance of North 43 degrees 24 minutes 42 seconds Section 32, Township 115 North, Range 717.22 feet to the centerline of County East a distance of 717.22 feet to the 22 West of the Fifth Principal Meridian, Road No. 81. The side line of said tract centerline of County Road No. 81, and Scott County, Minnesota lying south shall be extended or shortened as there terminating. The side line of said and east of the following described line: required to provide a full 66.00 feet tract shall be extended or shortened as Beginning at a point on the east line width from the south line of required to provide a full 66.00 feet of said Government Lot 4, distant 323.60 Government Lot 4 to and along the width from the south line of feet southerly of the northeast corner of centerline of County Road No. 81. Government Lot 4, to and along the said Lot 4; thence deflecting to the right Abstract Property. centerline of County Road No. 81. (as measured south to west) at an angle MENDEN2 Parcel J Abstract Property. of 98 degrees 44 minutes 00 seconds a distance of 380.43 feet; thence in a That part of Government Lot 1, MENDEN2 Parcel K southwesterly direction a distance of Section 5, Township 114 North, Range The part of the Northwest Quarter of 234 7.11 feet to a point on the westerly 22 West of the Fifth Principal Meridian, the Northwest Quarter of Section 4, extension of the south line of Scott County, Minnesota lying easterly Township 114 North, Range 22 West of Government Lot 1, a distance of 544.40 of the following described line: the Fifth Principal Meridian, Scott feet west of the southeast corner thereof Beginning at a point on the east line County, Minnesota described as follows: of Government Lot 4, Section 32, Commencing at the southeast corner and there terminating, and westerly and Township 115 North, Range 22 West of of said Northwest Quarter of the northwesterly of the following described the Fifth Principal Meridian, Scott Northwest Quarter; thence South 88 line: Beginning at the southwest corner County, Minnesota, distant 323.60 feet degrees 57 minutes 29 seconds West of the east 198.00 feet of said southerly of the northeast corner of said along the south line of said Northwest Government Lot 4; thence North 01 Lot 4; thence deflecting to the right (as Quarter of the Northwest Quarter a degree 32 minutes 24 seconds West measured south to west) at an angle of distance of 398.94 feet to the point of along the west line of said east 198.00 98 degrees 44 minutes 00 seconds a beginning of the land to be described; feet a distance of 779.22 feet; thence distance of 380.43 feet; thence in a thence North 00 degrees 16 minutes 39 North 43 degrees 24 minutes 42 seconds southwesterly direction a distance of seconds West a distance of 721.64 feet; East a distance of 280.25 feet to the east 2347.11 feet to a point on the westerly thence North 35 degrees 58 minutes 57 line of said Government Lot 4, and there extension of the south line of said seconds East a distance of 554.13 feet to terminating. Government Lot 1, distant 544.40 feet the west line of the east 66.00 feet of Together with: An easement for west of the southeast corner thereof and said Northwest Quarter of the Northwest driveway purposes over and across that there terminating. And westerly of the Quarter; thence northerly along said part of Government Lot 4, Section 32, following described line: Commencing west line of the east 66.00 feet a Township 115 North, Range 22 West of at the southeast corner of said distance of 129.99 feet to the north line the Fifth Principal Meridian, Scott Government Lot 1; thence South 88 of said Northwest Quarter of the County, Minnesota and that part of the degrees 24 minutes 26 seconds West Northwest Quarter; thence westerly Southwest Quarter of the Southwest along the south line of said Government along said north line a distance of 66.00 Quarter of Section 33, Township 115 Lot 1, a distance of 184.42 feet to the feet to the west line of the east 132.00 North, Range 22 West of the Fifth point of beginning of the line to be feet of said northwest Quarter of the Principal Meridian, Scott County, described thence North 00 degrees 31 Northwest Quarter; thence southerly Minnesota described as follows: minutes 54 seconds West a distance of along said west line of the east 132.00 A strip of land 60.00 feet in width, the 1233.15 feet to the south line of the feet a distance of 66.00 feet to the south centerline of which is described as north 66.00 feet of said Government Lot line of the north 66.00 feet of said follows: Commencing at the southwest 1; thence easterly along said south line Northwest Quarter of the Northwest corner of the east 198.00 feet of said of the north 66.00 feet a distance of Quarter; thence South 89 degrees 12 Government Lot 4; thence North 1 49.34 feet to the west line of the east minutes 12 seconds West along said degree 32 minutes 24 seconds West 132.00 feet of said Government Lot 1; south line of the north 66.00 feet a along the west line of said east 198.00 thence northerly along the west line of distance of 476.74 feet; thence South 00 feet a distance of 775.00 feet; thence said east 132.00 feet to the north line of degrees 31 minutes 54 seconds East a South 61 degrees 27 minutes 00 seconds said Government Lot 1, and there distance of 320.00 feet; thence South 4 West a distance of 10.00 feet to the point terminating. degrees 06 minutes 06 seconds west a of beginning of the line to be described; Together with that part of distance of 913.98 feet to the south line thence North 61 degrees 27 minutes 00 Government Lot 4, Section 32, of said Northwest Quarter of the seconds East a distance of 448.00 feet, Township 115 North, Range 22 West of Northwest Quarter; thence North 88 thence North 51 degrees 27 minutes 00 the Fifth Principal Meridian, Scott degrees 57 minutes 29 seconds East seconds East a distance of 351 feet, more County, Minnesota and that part of the along said south line a distance of or less, to the centerline of County Road Southwest Quarter of the Southwest 283.66 feet to the point of beginning. No. 81, and there terminating. Quarter of Section 33, Township 115 Together with that part of the west 66.00 Abstract Property. North, Range 22 West of the Fifth feet of the east 132.00 feet of the The above described lands contain a Principal Meridian, Scott County, Southwest Quarter of the Southwest total of 218.65 acres, more or less, Minnesota described as follows: Quarter of Section 33, Township 115 which are subject to all valid rights,

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reservations, rights-of-way, and Shakopee Reservation for the Shakopee before June 20, 2020, for listing or easements of record. Mdewakanton Sioux Community of related actions in the National Register This proclamation does not affect title Minnesota of Historic Places. to the lands described above, nor does 1 Parcel DATES: Comments should be submitted it affect any valid existing easements for electronically by July 22, 2020. Fifth Principal Meridian, Scott County, public roads, highways, public utilities, ADDRESSES: Comments are encouraged Minnesota railroads and pipelines, or any other to be submitted electronically to valid easements or rights-of-way or Legal Descriptions Containing 3.98 National_Register_Submissions@ reservations of record. Acres, More or Less nps.gov with the subject line ‘‘Public Whipps 2 Parcel, 411 T 1023 Comment on .’’ If you Assistant Secretary—Indian Affairs. All that part of the Northeast Quarter have no access to email you may send [FR Doc. 2020–14483 Filed 7–6–20; 8:45 am] of the Northwest Quarter of Section 22, them via U.S. Postal Service and all BILLING CODE 4337–15–P Township 115 North, Range 22 West of other carriers to the National Register of the Fifth Principal Meridian, located in Historic Places, National Park Service, Scott County, Minnesota, described as 1849 C Street NW, MS 7228, DEPARTMENT OF THE INTERIOR follows: Washington, DC 20240. Commencing at the Northeast corner SUPPLEMENTARY INFORMATION: The of the Northeast Quarter of the Bureau of Indian Affairs properties listed in this notice are being Northwest Quarter of Section 22; thence considered for listing or related actions South 01 degrees 08 minutes 57 seconds [201A2100DD/AAKC001030/ in the National Register of Historic West, along the east line of said A0A51010.999900] Places. Nominations for their Northeast Quarter of the Northwest consideration were received by the Quarter, a distance of 621.16 feet to the Proclaiming Certain Lands as National Park Service before June 20, point of beginning; thence continuing Reservation for the Shakopee 2020. Pursuant to Section 60.13 of 36 South 01 degrees 08 minutes 57 seconds Mdewakanton Sioux Community of CFR part 60, comments are being West, along said east line, a distance of Minnesota accepted concerning the significance of 349.75 feet; thence North 88 degrees 39 the nominated properties under the minutes 13 seconds West, a distance of AGENCY: Bureau of Indian Affairs, National Register criteria for evaluation. Interior. 501.20 feet; thence North 03 degrees 09 minutes 13 seconds West, a distance of Before including your address, phone ACTION: Notice of reservation 326.00 feet; thence North 88 degrees 39 number, email address, or other proclamation. minutes 00 seconds East, a distance of personal identifying information in your 526.16 feet to the point of beginning. comment, you should be aware that your entire comment—including your SUMMARY: This notice informs the public The above described lands contain a personal identifying information—may that the Assistant Secretary—Indian total of 3.98 acres, more or less, which be made publicly available at any time. Affairs proclaimed approximately 3.98 are subject to all valid rights, reservations, rights-of-way, and While you can ask us in your comment acres, more or less, an addition to the to withhold your personal identifying reservation of the Shakopee easements of record. This proclamation does not affect title information from public review, we Mdewakanton Sioux Community on cannot guarantee that we will be able to June 12, 2020. to the lands described above, nor does it affect any valid existing easements for do so. FOR FURTHER INFORMATION CONTACT: Ms. public roads, highways, public utilities, Nominations submitted by State or Sharlene M. Round Face, Bureau of railroads and pipelines, or any other Tribal Historic Preservation Officers: Indian Affairs, Division of Real Estate valid easements or rights-of-way or COLORADO Services, 1001 Indian School Road, NE, reservations of record. Box #44, Albuquerque, New Mexico Denver County Tara Sweeney, 87111, telephone (505) 563–3132. Colburn Hotel, 980 Grant St., Denver, Assistant Secretary—Indian Affairs. SG100005391 SUPPLEMENTARY INFORMATION: This [FR Doc. 2020–14485 Filed 7–6–20; 8:45 am] FLORIDA notice is published in the exercise of BILLING CODE 4337–15–P authority delegated by the Secretary of Hernando County the Interior to the Assistant Secretary— Sinclair Service Station, 5299 Commercial Indian Affairs by part 209 of the DEPARTMENT OF THE INTERIOR Way, Spring Hill, SG100005385 Departmental Manual. National Park Service Lake County A proclamation was issued according William Alfred Suggs Veterans of Foreign to the Act of June 18, 1934 (48 Stat. 986; [NPS–WASO–NRNHL–DTS#–30496; PPWOCRADI0, PCU00RP14.R50000] Wars Post 5277, 855 West Desoto St., 25 U.S.C. 5110) for the lands described Clermont, SG100005386 below. The land was proclaimed to be National Register of Historic Places; Liberty County the Shakopee Reservation for the Notification of Pending Nominations Shakopee Mdewakanton Sioux Hosford School and Gymnasium, (Florida’s and Related Actions New Deal Resources MPS), 16827 NE FL Community of Minnesota, Scott County, 65, Hosford, MP100005392 and State of Minnesota. AGENCY: National Park Service, Interior. ACTION: Notice. Sarasota County Sarasota County Chamber of Commerce SUMMARY: The National Park Service is Building, (Sarasota School of Architecture soliciting electronic comments on the MPS), 655 North Tamiami Trail, Sarasota, significance of properties nominated MP100005395

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MAINE DEPARTMENT OF THE INTERIOR information was published on February Cumberland County 10, 2020 (85 FR 7586). No comments Bureau of Safety and Environmental were received. Sagamore Village Historic District, Cabot, Enforcement As part of our continuing effort to Purchase, Popham, Godfrey, and Josselyn [Docket ID BSEE–2019–0011; EEEE500000 reduce paperwork and respondent Sts., and portions of Taft and Brighton burdens, we are again soliciting Aves., Portland, SG100005397 20XE1700DX EX1SF0000.EAQ000; OMB Control Number 1014–0011] comments from the public and other MINNESOTA Federal agencies on the proposed ICR Agency Information Collection that is described below. We are Hennepin County Activities; Submission to the Office of especially interested in public comment Studio 80 (Prince, 1958–1987 MPS), 2709 Management and Budget for Review addressing the following: East 25th St., Minneapolis, MP100005399 and Approval; Platforms and (1) Whether or not the collection of Structures information is necessary for the proper MONTANA performance of the functions of the Missoula County AGENCY: Bureau of Safety and agency, including whether or not the Environmental Enforcement, Interior. Stark House, Address Restricted, Condon information will have practical utility; vicinity, SG100005393 ACTION: Notice of information collection; (2) The accuracy of our estimate of the request for comment. burden for this collection of Petroleum County information, including the validity of SUMMARY: In accordance with the Howard Lepper Memorial Hall, Just west of the methodology and assumptions used; Paperwork Reduction Act of 1995 Flatwillow Rd., Flatwillow vicinity, (3) Ways to enhance the quality, SG100005396 (PRA), the Bureau of Safety and utility, and clarity of the information to Environmental Enforcement (BSEE) be collected; and Yellowstone County proposes to renew an information (4) How might the agency minimize Kate Fratt Memorial Parochial School, 205 collection. the burden of the collection of North 32nd St., Billings, SG100005389 DATES: Interested persons are invited to information on those who are to respond, including through the use of TENNESSEE submit comments on or before August 6, 2020. appropriate automated, electronic, Hamilton County mechanical, or other technological ADDRESSES: Written comments and collection techniques or other forms of Downtown Chattanooga Historic District, recommendations for the proposed information technology, e.g., permitting Roughly bounded by Martin Luther King Jr. information collection should be sent electronic submission of response. Blvd., Georgia Ave., East 5th., Walnut, East within 30 days of publication of this Comments that you submit in 6th, and Chestnut Sts., Chattanooga, notice to www.reginfo.gov/public/do/ response to this notice are a matter of SG100005387 PRAMain. Find this information public record. Before including your collection by selecting ‘‘Currently under Shelby County address, phone number, email address, 30-day Review—Open for Public or other personal identifying Anshei Sphard-Beth El Emeth Synagogue, Comments’’ or by using the search 120 East Yates Road North, Memphis, information in your comment, you function. Please provide a copy of your SG100005388 should be aware that your entire comments to Kye Mason, BSEE ICCO, comment—including your personal TEXAS 45600 Woodland Road, Sterling, VA identifying information—may be made 20166; or by email to kye.mason@ Bexar County publicly available at any time. While bsee.gov. Please reference OMB Control you can ask us in your comment to Specht’s Store and Schmidt’s Gin, 106 Number 1014–0011 in the subject line of withhold your personal identifying Specht Rd., Bulverde vicinity, your comments. SG100005384 information from public review, we FOR FURTHER INFORMATION CONTACT: To cannot guarantee that we will be able to Additional documentation has been request additional information about do so. received for the following resource: this ICR, contact Kye Mason by email at Abstract: The regulations at 30 CFR [email protected], or by telephone at part 250, subpart I, concern platforms MINNESOTA (703) 787–1607. You may also view the and structures regulatory requirements Wright County ICR at http://www.reginfo.gov/public/ of oil, gas, and sulfur operations in the do/PRAMain. Rand, Rufus, Summer House and Carriage Outer Continental Shelf (OCS) Barn (Additional Documentation), (Wright SUPPLEMENTARY INFORMATION: In (including the associated forms) and are County MRA), 506 Old Territorial Rd. and accordance with the PRA at 5 CFR the subject of this collection. This 602 Fallon Ave. NE, Monticello, 1320.8(d)(1), we provide the general request also covers any related Notices AD79001275 public and other Federal agencies with to Lessees and Operators (NTLs) that an opportunity to comment on new, BSEE issues to clarify, supplement, or Authority: Section 60.13 of 36 CFR part 60 proposed, revised, and continuing provide additional guidance on some collections of information. This helps us Dated: June 23, 2020. aspects of our regulations. assess the impact of our information The BSEE uses the information Sherry A. Frear, collection requirements and minimize submitted under Subpart I to determine Chief, National Register of Historic Places/ the public’s reporting burden. It also the structural integrity of all OCS National Historic Landmarks Program. helps the public understand our platforms and floating production [FR Doc. 2020–14506 Filed 7–6–20; 8:45 am] information collection requirements and facilities and to ensure that such BILLING CODE 4312–52–P provide the requested data in the integrity will be maintained throughout desired format. the useful life of these structures. We A Federal Register notice with a 60- use the information to ascertain, on a day public comment period soliciting case-by-case basis, that the fixed and comments on this collection of floating platforms and structures are

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structurally sound and safe for their DEPARTMENT OF THE INTERIOR comments on this collection of intended use to ensure safety of information was published on February personnel and prevent pollution. More Bureau of Safety and Environmental 18, 2020 (85 FR 8890). No comments specifically, we use the information to: Enforcement were received. • Review data concerning damage to [Docket ID BSEE–2019–0013; EEEE500000 As part of our continuing effort to a platform to assess the adequacy of 20XE1700DX EX1SF0000.EAQ000; OMB reduce paperwork and respondent proposed repairs. Control Number 1014–0026] burdens, we are again soliciting • Review applications for platform comments from the public and other construction (construction is divided Agency Information Collection Federal agencies on the proposed into three phases–design, fabrication, Activities; Submission to the Office of information collection request (ICR) that and installation) to ensure the structural Management and Budget for Review is described below. We are especially integrity of the platform. and Approval; Application for Permit interested in public comment • Review verification plans and third- To Modify and Supporting addressing the following: party reports for unique platforms to Documentation (1) Whether or not the collection of ensure that all nonstandard situations information is necessary for the proper are given proper consideration during AGENCY: Bureau of Safety and performance of the functions of the the platform design, fabrication, and Environmental Enforcement, Interior. agency, including whether or not the installation. ACTION: Notice of information collection; information will have practical utility; • Review platform design, fabrication, request for comment. (2) The accuracy of our estimate of the and installation records to ensure that burden for this collection of the platform is constructed according to SUMMARY: In accordance with the information, including the validity of approved applications. Paperwork Reduction Act of 1995 the methodology and assumptions used; • Review inspection reports to ensure (PRA), the Bureau of Safety and (3) Ways to enhance the quality, that platform integrity is maintained for Environmental Enforcement (BSEE) utility, and clarity of the information to the life of the platform. proposes to renew an information be collected; and Title of Collection: 30 CFR 250, collection with revisions. (4) How might the agency minimize Subpart I, Platforms and Structures. DATES: Interested persons are invited to the burden of the collection of OMB Control Number: 1014–0011. submit comments on or before August 6, information on those who are to Form Number: None. 2020. respond, including through the use of Type of Review: Extension of a ADDRESSES: Written comments and appropriate automated, electronic, currently approved collection. mechanical, or other technological Respondents/Affected Public: recommendations for the proposed information collection should be sent collection techniques or other forms of Potential respondents are comprised of information technology, e.g., permitting Federal OCS oil, gas, and sulfur lessees/ within 30 days of publication of this notice to www.reginfo.gov/public/do/ electronic submission of response. operators and holders of pipeline rights- Comments that you submit in PRAMain. Find this particular of-way. response to this notice are a matter of information collection by selecting Total Estimated Number of Annual public record. Before including your ‘‘Currently under 30-day Review—Open Respondents: Not all the potential address, phone number, email address, for Public Comments’’ or by using the respondents will submit information in or other personal identifying search function. Please provide a copy any given year, and some may submit information in your comment, you of your comments to Kye Mason, BSEE multiple times. should be aware that your entire ICCO, 45600 Woodland Road, Sterling, Total Estimated Number of Annual comment—including your personal VA 20166; or by email to kye.mason@ Responses: 362. identifying information—may be made bsee.gov. Please reference OMB Control Estimated Completion Time per publicly available at any time. While Number 1014–0026 in the subject line of Response: Varies from 5 hours to 280 you can ask us in your comment to your comments. hours, depending on the activity. withhold your personal identifying Total Estimated Number of Annual FOR FURTHER INFORMATION CONTACT: To information from public review, we Burden Hours: 92,786. request additional information about cannot guarantee that we will be able to Respondent’s Obligation: Responses this ICR, contact Kye Mason by email at are mandatory, while others are do so. [email protected], or by telephone at Abstract: Throughout the regulations required to obtain or retain benefits. (703) 787–1607. You may also view the Frequency of Collection: Generally, on at 30 CFR part 250, BSEE requires the ICR at http://www.reginfo.gov/public/ submission of Applications for Permit to occasion and annually, varies by do/PRAMain. section. Modify (APM), and all supporting SUPPLEMENTARY INFORMATION: Total Estimated Annual Nonhour In documentation on form BSEE–0124 that Burden Cost: $988,210. accordance with the PRA and 5 CFR pertain to regulatory requirements of oil, An agency may not conduct or 1320.8(d)(1), we provide the general gas, and sulfur operations in the Outer sponsor, and a person is not required to public and other Federal agencies with Continental Shelf (OCS) (including the respond to, a collection of information an opportunity to comment on new, associated forms), and are the subject of unless it displays a currently valid OMB proposed, revised, and continuing this collection. This request also covers control number. collections of information. This helps us any related Notices to Lessees and The authority for this action is the assess the impact of our information Operators (NTLs) that BSEE issues to Paperwork Reduction Act of 1995 (44 collection requirements and minimize clarify, supplement, or provide U.S.C. 3501 et seq). the public’s reporting burden. It also additional guidance on some aspects of helps the public understand our our regulations. Amy White, information collection requirements and In this information collection request, Acting Chief, Regulations and Standards provide the requested data in the we are updating/revising form BSEE– Branch. desired format. 0124 to follow eWell. Specifically, No. [FR Doc. 2020–14522 Filed 7–6–20; 8:45 am] A Federal Register notice with a 60- 16 in order to provide consistency in BILLING CODE 4310–VH–P day public comment period soliciting both district engineer and inspection

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coding, No. 18 to add § 250.730(a) to the respond to a collection of information 1320.8(d)(1), we provide the general list of citations, No. 20 to add text to unless it displays a currently valid OMB public and other Federal agencies with reflect § 250.730(a), and No. 36 to control number. an opportunity to comment on new, revise/edit text in (J) to be more general The authority for this action is the proposed, revised, and continuing and (M) to be more clear on what we are Paperwork Reduction Act of 1995 (44 collections of information. This helps us requesting. U.S.C. 3501 et seq.). assess the impact of our information The BSEE uses the information to collection requirements and minimize Amy White, ensure safe well control, completion, the public’s reporting burden. It also workover, and decommissioning Acting Chief, Regulations and Standards helps the public understand our Branch. operations and to protect the human, information collection requirements and marine, and coastal environment. [FR Doc. 2020–14521 Filed 7–6–20; 8:45 am] provide the requested data in the Among other things, BSEE specifically BILLING CODE 4310–VH–P desired format. uses the information to ensure: The well A Federal Register notice with a 60- day public comment period soliciting control, completion, workover, and DEPARTMENT OF THE INTERIOR decommissioning unit (drilling/well comments on this collection of operations) is fit for the intended Bureau of Safety and Environmental information was published on February purpose; equipment is maintained in a Enforcement 10, 2020 (85 FR 7587). BSEE received state of readiness and meets safety one comment in response to this notice; standards; each drilling/well operation [Docket ID BSEE–2019–0012; EEEE500000 however, it was not germane to the crew is properly trained and able to 20XE1700DX EX1SF0000.EAQ000; OMB collection. Control Number 1014–0012] promptly perform well-control activities As part of our continuing effort to reduce paperwork and respondent at any time during well operations; Agency Information Collection burdens, we are again soliciting compliance with safety standards; and Activities; Submission to the Office of comments from the public and other the current regulations will provide for Management and Budget for Review Federal agencies on the proposed ICR safe and proper field or reservoir and Approval; Open and that is described below. We are development, resource evaluation, Nondiscriminatory Access to Oil and especially interested in public comment conservation, protection of correlative Gas Pipelines Under the OCS Lands addressing the following: rights, safety, and environmental Act protection. We also review well records (1) Whether or not the collection of to ascertain whether the operations have AGENCY: Bureau of Safety and information is necessary for the proper encountered hydrocarbons or H2S and Environmental Enforcement, Interior. performance of the functions of the to ensure that H2S detection equipment, ACTION: Notice of information collection; agency, including whether or not the personnel protective equipment, and request for comment. information will have practical utility; training of the crew are adequate for safe (2) The accuracy of our estimate of the SUMMARY: operations in zones known to contain In accordance with the burden for this collection of H2S and zones where the presence of Paperwork Reduction Act of 1995 information, including the validity of H2S is unknown. (PRA), the Bureau of Safety and the methodology and assumptions used; Title of Collection: 30 CFR part 250, Environmental Enforcement (BSEE) (3) Ways to enhance the quality, Application for Permit to Modify (APM) proposes to renew an information utility, and clarity of the information to and supporting documentation. collection. be collected; and (4) How might the agency minimize OMB Control Number: 1014–0026. DATES: Interested persons are invited to the burden of the collection of Form Number: BSEE–0124. submit comments on or before August 6, information on those who are to Type of Review: Revision of a 2020. respond, including through the use of currently approved collection. ADDRESSES: Written comments and Respondents/Affected Public: appropriate automated, electronic, recommendations for the proposed mechanical, or other technological Potential respondents are comprised of information collection should be sent Federal OCS oil, gas, and sulfur lessees/ collection techniques or other forms of within 30 days of publication of this information technology, e.g., permitting operators and holders of pipeline rights- notice to www.reginfo.gov/public/do/ of-way. electronic submission of response. PRAMain. Find this particular Comments that you submit in Total Estimated Number of Annual information collection by selecting Respondents: Not all the potential response to this notice are a matter of ‘‘Currently under 30-day Review—Open public record. Before including your respondents will submit information at for Public Comments’’ or by using the any given time, and some may submit address, phone number, email address, search function. Please provide a copy or other personal identifying multiple times. of your comments to Kye Mason, BSEE Total Estimated Number of Annual information in your comment, you ICCO, 45600 Woodland Road, Sterling, should be aware that your entire Responses: 12,202. VA 20166; or by email to kye.mason@ Estimated Completion Time per comment—including your personal bsee.gov. Please reference OMB Control Response: Varies from 10 minutes to identifying information—may be made Number 1014–0012 in the subject line of 154 hours, depending on activity. publicly available at any time. While Total Estimated Number of Annual your comments. you can ask us in your comment to Burden Hours: 17,311. FOR FURTHER INFORMATION CONTACT: To withhold your personal identifying Respondent’s Obligation: Responses request additional information about information from public review, we are mandatory. this ICR, contact Kye Mason by email at cannot guarantee that we will be able to Frequency of Collection: On occasion [email protected], or by telephone at do so. and varies by section. (703) 787–1607. You may also view the Abstract: The regulations at 30 CFR Total Estimated Annual Nonhour ICR at http://www.reginfo.gov/public/ part 291 concern the Open and Burden Cost: $6,451,500. do/PRAMain. Nondiscriminatory Access to Oil and An agency may not conduct or SUPPLEMENTARY INFORMATION: In Gas Pipelines Under the OCS Lands Act sponsor and a person is not required to accordance with the PRA at 5 CFR (including the associated forms) and are

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the subject of this collection. This DEPARTMENT OF THE INTERIOR collection requirements and minimize request also covers any related Notices the public’s reporting burden. It also to Lessees and Operators (NTLs) that Bureau of Safety and Environmental helps the public understand our BSEE issues to clarify, supplement, or Enforcement information collection requirements and provide additional guidance on some [Docket ID BSEE–2020–0005; EEEE500000 provide the requested data in the aspects of our regulations. 20XE1700DX EX1SF0000.EAQ000; OMB desired format. Control Number 1014–0022] We are especially interested in public The BSEE uses the submitted comment addressing the following: information to initiate a more detailed Agency Information Collection (1) Whether or not the collection of review into the specific circumstances Activities; General information is necessary for the proper associated with a complainant’s performance of the functions of the allegation of denial of access or AGENCY: Bureau of Safety and agency, including whether or not the discriminatory access to pipelines on Environmental Enforcement, Interior. information will have practical utility; the OCS. The complaint information ACTION: Notice of information collection; (2) The accuracy of our estimate of the will be provided to the alleged request for comment. burden for this collection of offending party. Alternative dispute information, including the validity of resolution may be used either before or SUMMARY: In accordance with the the methodology and assumptions used; after a complaint has been filed to Paperwork Reduction Act (PRA) of (3) Ways to enhance the quality, informally resolve the dispute. The 1995, the Bureau of Safety and utility, and clarity of the information to BSEE may request additional Environmental Enforcement (BSEE) be collected; and information upon completion of the proposes to renew an information (4) How might the agency minimize initial review. collection. the burden of the collection of Title of Collection: 30 CFR part 291, DATES: Interested persons are invited to information on those who are to Open and Nondiscriminatory Access to submit comments on or before respond, including through the use of Oil and Gas Pipelines Under the OCS September 8, 2020. appropriate automated, electronic, mechanical, or other technological Lands Act. ADDRESSES: Send your comments on collection techniques or other forms of OMB Control Number: 1014–0012. this information collection request (ICR) by either of the following methods listed information technology, e.g., permitting Form Number: None. below: electronic submission of response. Comments that you submit in Type of Review: Extension of a • Electronically go to http:// response to this notice are a matter of currently approved collection. www.regulations.gov. In the Search box, enter BSEE–2020–0005 then click public record. We will include or Respondents/Affected Public: summarize each comment in our request Potential respondents are comprised of search. Follow the instructions to submit public comments and view all to OMB to approve this ICR. Before Federal OCS oil, gas, and sulfur lessees/ including your address, phone number, operators and holders of pipeline rights- related materials. We will post all comments. email address, or other personal of-way. • Email [email protected], fax identifying information in your Total Estimated Number of Annual (703) 787–1546, or mail or hand-carry comment, you should be aware that Respondents: 1. comments to the Department of the your entire comment—including your personal identifying information—may Total Estimated Number of Annual Interior; Bureau of Safety and be made publicly available at any time. Responses: 2. Environmental Enforcement; Regulations and Standards Branch; While you can ask us in your comment Estimated Completion Time per ATTN: Nicole Mason; 45600 Woodland to withhold your personal identifying Response: Varies from 1 hour to 50 Road, Sterling, VA 20166. Please information from public review, we hours. reference OMB Control Number 1014– cannot guarantee that we will be able to Total Estimated Number of Annual 0022 in the subject line of your do so. Burden Hours: 51. comments. Abstract: The BSEE uses the information collected under the Subpart Respondent’s Obligation: Responses FOR FURTHER INFORMATION CONTACT: To A regulations to ensure that operations are voluntary but are required to obtain request additional information about on the OCS are carried out in a safe and or retain benefits. this ICR, contact Nicole Mason by email pollution-free manner, do not interfere Frequency of Collection: On occasion. at [email protected] or by telephone with the rights of other users on the at (703) 787–1607. Total Estimated Annual Nonhour OCS, and balance the protection and Burden Cost: $7,500. SUPPLEMENTARY INFORMATION: In development of OCS resources. accordance with the PRA and 5 CFR Specifically, we use the information An agency may not conduct or 1320.8(d)(1), all information collections collected to: sponsor, and a person is not required to require approval under the PRA. We • Review records of formal crane respond to, a collection of information may not conduct, or sponsor and you operator and rigger training, crane unless it displays a currently valid OMB are not required to respond to a operator qualifications, crane control number. collection of information unless it inspections, testing, and maintenance to The authority for this action is the displays a currently valid OMB control ensure that lessees/operators perform Paperwork Reduction Act of 1995 (44 number. operations in a safe and workmanlike U.S.C. 3501 et seq). As part of our continuing effort to manner and that equipment is reduce paperwork and respondent maintained in a safe condition. The Amy White, burdens, we invite the public and other BSEE also uses the information to make Acting Chief, Regulations and Standards Federal agencies to comment on new, certain that all new and existing cranes Branch. proposed, revised, and continuing installed on OCS fixed platforms must [FR Doc. 2020–14523 Filed 7–6–20; 8:45 am] collections of information. This helps us be equipped with anti-two block safety BILLING CODE 4310–VH–P assess the impact of our information devices, and to assure that uniform

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methods are employed by lessees for case of the need to rescue offshore operators and holders of pipeline rights- load testing of cranes. workers in distress, to monitor damage of-way. • Review welding plans, procedures, to offshore platforms and drilling rigs, Total Estimated Number of Annual and records to ensure that welding is and to advise the news media and Respondents: Not all the potential conducted in a safe and workmanlike interested public entities when respondents will submit information in manner by trained and experienced production is shut-in and when any given year, and some may submit personnel. resumed. The Gulf of Mexico OCS multiple times. • Provide lessees/operators greater Region (GOMR) uses Form BSEE–0132, Total Estimated Number of Annual flexibility to comply with regulatory Hurricane and Tropical Storm Responses: 21,776. requirements through approval of Evacuation and Production Curtailment Estimated Completion Time per alternative equipment or procedures Statistics, for respondents to report Response: .5 hour to 106 hours, and departures to regulations if they evacuation statistics when necessary. depending on activity. demonstrate equal or better compliance This form requires the respondent to Total Estimated Number of Annual with the appropriate performance submit general information such as Burden Hours: 99,866. standards. company name, contact, date, time, Respondent’s Obligation: Most • Ensure that injection of gas telephone number, as well as number of responses are mandatory, while others promotes conservation of natural platforms and drilling rigs evacuated are required to obtain or retain benefits, resources and prevents waste. and not evacuated. We also require or voluntary. • Frequency of Collection: Submissions Record the agent and local agent production shut-in statistics for oil are generally on occasion, daily, empowered to receive notices and (BOPD) and gas (MMSCFD). comply with regulatory orders issued. monthly, and vary by section. • Provide for orderly development of Form BSEE–0143, Facility/Equipment Total Estimated Annual Nonhour leases through the use of information to Damage Report Burden Cost: $222,915. determine the appropriateness of lessee/ • An agency may not conduct, or Assists lessees, lease operators, and sponsor and a person is not required to operator requests for suspension of pipeline right-of-way holders when operations, including production. respond to a collection of information • reporting damage by a hurricane, unless it displays a currently valid OMB Improve safety and environmental earthquake, or other natural protection on the OCS through control number. phenomenon. They are required to The authority for this action is the collection and analysis of accident submit an initial damage report to the reports to ascertain the cause of the Paperwork Reduction Act of 1995 (44 Regional Supervisor within 48 hours U.S.C. 3501 et seq.). accidents and to determine ways to after completing the initial evaluation of prevent recurrences. Amy White, • the damage and then, subsequent Ascertain when the lease ceases reports, monthly and immediately, Acting Chief, Regulations and Standards production or when the last well ceases whenever information changes until the Branch. production in order to determine the damaged structure or equipment is [FR Doc. 2020–14520 Filed 7–6–20; 8:45 am] 180th day after the date of completion returned to service. Information on the BILLING CODE 4310–VH–P of the last production. The BSEE will form includes—instructions, general use this information to efficiently information, a description of the maintain the lessee/operator lease damage, an initial damage assessment, DEPARTMENT OF THE INTERIOR status. production rate at time of shut-in (BPD • Allow lessees/operators who and/or MMCFPD), cumulative Bureau of Safety and Environmental exhibit unacceptable performance an production shut-in (BPD and/or Enforcement incremental approach to improving MMCFPD), and estimated time to return [Docket ID BSEE–2020–0004; EEEE500000 their overall performance prior to a final to service (in days). 20XE1700DX EX1SF0000.EAQ000; OMB decision to disqualify a lessee/operator Control Number 1014–0015] or to pursue debarment proceedings Form BSEE–1832, Notification of through the execution of a performance Incident(s) of Noncompliance Agency Information Collection improvement plan (PIP). The Subpart A • Determine that respondents have Activities; Unitization regulations do not address the actual corrected all Incident(s) of process that we will follow in pursuing AGENCY: Bureau of Safety and Noncompliance (INCs), identified the disqualification of operators under Environmental Enforcement, Interior. during inspections. Everything on the §§ 250.135 and 250.136; however, our ACTION: Notice of information collection; INC form is filled out by a BSEE internal enforcement procedures request for comment. inspector/representative. The only thing include allowing such operators to industry does with this form is sign the SUMMARY: In accordance with the demonstrate a commitment to document upon receipt and respond to Paperwork Reduction Act (PRA) of acceptable performance by the BSEE when each INC has been 1995, the Bureau of Safety and submission of a PIP. corrected, no later than 14 days from the Environmental Enforcement (BSEE) The BSEE forms use and information date of issuance. proposes to renew an information consists of the following: Title of Collection: 30 CFR part 250, collection. Form BSEE–0132, Hurricane and subpart A, General. DATES: Interested persons are invited to Tropical Storm Evacuation and OMB Control Number: 1014–0022. submit comments on or before Production Curtailment Statistics Form Numbers: BSEE–0132, BSEE– September 8, 2020. (GOMR) 0143, BSEE–1832. ADDRESSES: Send your comments on • Be informed when there could be a Type of Review: Extension of a this information collection request (ICR) major disruption in the availability and currently approved collection. by either of the following methods listed supply of natural gas and oil due to Respondents/Affected Public: below: natural occurrences/hurricanes, to Potential respondents include Federal • Electronically go to http:// advise the U.S. Coast Guard (USCG) in OCS oil, gas, and sulfur lessees and/or www.regulations.gov. In the Search box,

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enter BSEE–2020–0004 then click public record. We will include or INTERNATIONAL TRADE search. Follow the instructions to summarize each comment in our request COMMISSION submit public comments and view all to OMB to approve this ICR. Before including your address, phone number, [Investigation No. 731–TA–1528 related materials. We will post all (Preliminary)] comments. email address, or other personal • Email [email protected], fax identifying information in your Seamless Refined Copper Pipe and (703) 787–1546, or mail or hand-carry comment, you should be aware that Tube From Vietnam; Institution of an comments to the Department of the your entire comment—including your Anti-Dumping Duty Investigation and Interior; Bureau of Safety and personal identifying information—may Scheduling of Preliminary Phase Environmental Enforcement; be made publicly available at any time. Investigation Regulations and Standards Branch; While you can ask us in your comment ATTN: Nicole Mason; 45600 Woodland to withhold your personal identifying AGENCY: United States International Road, Sterling, VA 20166. Please information from public review, we Trade Commission. reference OMB Control Number 1014– cannot guarantee that we will be able to ACTION: Notice. 0015 in the subject line of your do so. comments. Abstract: BSEE must approve any SUMMARY: The Commission hereby gives lessee’s proposal to enter an agreement notice of the institution of an FOR FURTHER INFORMATION CONTACT: To to unitize operations under two or more investigation and commencement of request additional information about leases and for modifications when preliminary phase antidumping duty this ICR, contact Nicole Mason by email warranted. We use the information to investigation No. 731–TA–1528 at [email protected] or by telephone ensure that operations under the (Preliminary) pursuant to the Tariff Act at (703) 787–1607. proposed unit agreement will result in of 1930 (‘‘the Act’’) to determine SUPPLEMENTARY INFORMATION: In preventing waste, conserving natural whether there is a reasonable indication accordance with the PRA and 5 CFR resources, and protecting correlative that an industry in the United States is 1320.8(d)(1), all information collections rights including the government’s materially injured or threatened with require approval under the PRA. We interests. material injury, or the establishment of may not conduct, or sponsor and you Title of Collection: 30 CFR 250, an industry in the United States is are not required to respond to a Subpart M, Unitization. materially retarded, by reason of collection of information unless it OMB Control Number: 1014–0015. imports of seamless refined copper pipe displays a currently valid OMB control Form Number: None. and tube from Vietnam, provided for in number. Type of Review: Extension of a subheading 7411.10.10 of the As part of our continuing effort to currently approved collection. Harmonized Tariff Schedule of the reduce paperwork and respondent Respondents/Affected Public: United States, that are alleged to be sold burdens, we invite the public and other Potential respondents include Federal in the United States at less than fair Federal agencies to comment on new, OCS oil, gas, and sulfur lessees and/or value. Unless the Department of proposed, revised, and continuing operators and holders of pipeline rights- Commerce (‘‘Commerce’’) extends the collections of information. This helps us of-way. time for initiation, the Commission Total Estimated Number of Annual assess the impact of our information must reach a preliminary determination Respondents: Not all the potential collection requirements and minimize in antidumping duty investigations in respondents will submit information in the public’s reporting burden. It also 45 days, or in this case by August 14, any given year, and some may submit helps the public understand our 2020. The Commission’s views must be multiple times. information collection requirements and transmitted to Commerce within five provide the requested data in the Total Estimated Number of Annual Responses: 93. business days thereafter, or by August desired format. 21, 2020. We are especially interested in public Estimated Completion Time per DATES: June 30, 2020. comment addressing the following: Response: 1 hour to 520 hours, (1) Whether or not the collection of depending on activity. FOR FURTHER INFORMATION CONTACT: information is necessary for the proper Total Estimated Number of Annual Jordan Harriman ((202) 205–2610), performance of the functions of the Burden Hours: 7,800 Office of Investigations, U.S. Respondent’s Obligation: Voluntary agency, including whether or not the International Trade Commission, 500 E and some are required to obtain or information will have practical utility; Street SW, Washington, DC 20436. (2) The accuracy of our estimate of the retain a benefit. Hearing-impaired persons can obtain Frequency of Collection: Submissions burden for this collection of information on this matter by contacting are generally on occasion. information, including the validity of the Commission’s TDD terminal on 202– Total Estimated Annual Nonhour 205–1810. Persons with mobility the methodology and assumptions used; Burden Cost: $195,757. (3) Ways to enhance the quality, impairments who will need special An agency may not conduct or assistance in gaining access to the utility, and clarity of the information to sponsor and a person is not required to be collected; and Commission should contact the Office respond to a collection of information of the Secretary at 202–205–2000. (4) How might the agency minimize unless it displays a currently valid OMB the burden of the collection of General information concerning the control number. Commission may also be obtained by information on those who are to The authority for this action is the accessing its internet server (https:// respond, including through the use of Paperwork Reduction Act of 1995 (44 www.usitc.gov). The public record for appropriate automated, electronic, U.S.C. 3501 et seq.). mechanical, or other technological this investigation may be viewed on the collection techniques or other forms of Amy White, Commission’s electronic docket (EDIS) information technology, e.g., permitting Acting Chief, Regulations and Standards at https://edis.usitc.gov. electronic submission of response. Branch. SUPPLEMENTARY INFORMATION: Comments that you submit in [FR Doc. 2020–14519 Filed 7–6–20; 8:45 am] Background.—This investigation is response to this notice are a matter of BILLING CODE 4310–VH–P being instituted, pursuant to section

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733(a) of the Tariff Act of 1930 (19 17, 2020. A nonparty who has testimony operations of the Commission including U.S.C. 1673b(a)), in response to a that may aid the Commission’s under 5 U.S.C. Appendix 3; or (ii) by petition filed on June 30, 2020, by the deliberations may request permission to U.S. government employees and American Copper Tube Coalition, present a short statement. Please note contract personnel, solely for consisting of Mueller Group, the Secretary’s Office will accept only cybersecurity purposes. All contract Collierville, Tennessee, and Cerro Flow electronic filings during this time. personnel will sign appropriate Products, LLC, Sauget, Illinois. Filings must be made through the nondisclosure agreements. For further information concerning Commission’s Electronic Document Authority: This investigation is being the conduct of this investigation and Information System (EDIS, https:// conducted under authority of title VII of the rules of general application, consult the edis.usitc.gov). No in-person paper- Tariff Act of 1930; this notice is published Commission’s Rules of Practice and based filings or paper copies of any pursuant to section 207.12 of the Procedure, part 201, subparts A and B electronic filings will be accepted until Commission’s rules. (19 CFR part 201), and part 207, further notice. By order of the Commission. subparts A and B (19 CFR part 207). Written submissions.—As provided in Issued: July 1, 2020. Participation in the investigation and sections 201.8 and 207.15 of the public service list.—Persons (other than Commission’s rules, any person may Lisa Barton, petitioners) wishing to participate in the submit to the Commission on or before Secretary to the Commission. investigation as parties must file an July 24, 2020, a written brief containing [FR Doc. 2020–14541 Filed 7–6–20; 8:45 am] entry of appearance with the Secretary information and arguments pertinent to BILLING CODE 7020–02–P to the Commission, as provided in the subject matter of the investigation. sections 201.11 and 207.10 of the Parties may file written opening remarks Commission’s rules, not later than seven and testimony to the Commission on or INTERNATIONAL TRADE days after publication of this notice in before July 17, 2020. Staff questions will COMMISSION the Federal Register. Industrial users be provided to the parties on July 21, [Investigation Nos. 701–TA–653 and 731– and (if the merchandise under 2020, and written responses should be TA–1527 (Preliminary)] investigation is sold at the retail level) submitted to the Commission on or representative consumer organizations before July 24, 2020. All written Standard Steel Welded Wire Mesh have the right to appear as parties in submissions must conform with the From Mexico; Institution of Anti- Commission antidumping duty provisions of section 201.8 of the Dumping and Countervailing Duty investigations. The Secretary will Commission’s rules; any submissions Investigations and Scheduling of prepare a public service list containing that contain BPI must also conform with Preliminary Phase Investigations the names and addresses of all persons, the requirements of sections 201.6, or their representatives, who are parties 207.3, and 207.7 of the Commission’s AGENCY: United States International to this investigation upon the expiration rules. The Commission’s Handbook on Trade Commission. of the period for filing entries of Filing Procedures, available on the ACTION: Notice. appearance. Commission’s website at https:// SUMMARY: The Commission hereby gives Limited disclosure of business www.usitc.gov/documents/handbook_ notice of the institution of investigations proprietary information (BPI) under an on_filing_procedures.pdf, elaborates and commencement of preliminary administrative protective order (APO) upon the Commission’s procedures with phase antidumping and countervailing and BPI service list.—Pursuant to respect to filings. section 207.7(a) of the Commission’s In accordance with sections 201.16(c) duty investigation Nos. 701–TA–653 rules, the Secretary will make BPI and 207.3 of the rules, each document and 731–TA–1527 (Preliminary) gathered in this investigation available filed by a party to the investigation must pursuant to the Tariff Act of 1930 (‘‘the to authorized applicants representing be served on all other parties to the Act’’) to determine whether there is a interested parties (as defined in 19 investigation (as identified by either the reasonable indication that an industry U.S.C. 1677(9)) who are parties to the public or BPI service list), and a in the United States is materially investigation under the APO issued in certificate of service must be timely injured or threatened with material the investigation, provided that the filed. The Secretary will not accept a injury, or the establishment of an application is made not later than seven document for filing without a certificate industry in the United States is days after the publication of this notice of service. materially retarded, by reason of in the Federal Register. A separate Certification.—Pursuant to section imports of standard steel welded wire service list will be maintained by the 207.3 of the Commission’s rules, any mesh from Mexico, provided for in Secretary for those parties authorized to person submitting information to the subheadings 7314.20.00 and 7314.39.00 receive BPI under the APO. Commission in connection with these of the Harmonized Tariff Schedule of Conference.— In light of the investigations must certify that the the United States, that are alleged to be restrictions on access to the Commission information is accurate and complete to sold in the United States at less than fair building due to the COVID–19 the best of the submitter’s knowledge. In value and alleged to be subsidized by pandemic, the Commission is making the certification, the submitter the Government of Mexico. Unless the conducting its Title VII (antidumping will acknowledge that any information Department of Commerce (‘‘Commerce’’) and countervailing duty) preliminary that it submits to the Commission extends the time for initiation, the phase staff conferences through during these investigations may be Commission must reach a preliminary submissions of written opening remarks disclosed to and used: (i) By the determination in antidumping and and written testimony, staff questions Commission, its employees and Offices, countervailing duty investigations in 45 and written responses to those and contract personnel (a) for days, or in this case by August 14, 2020. questions, and postconference briefs. developing or maintaining the records The Commission’s views must be Requests to participate in these written of these or related investigations or transmitted to Commerce within five proceedings should be emailed to reviews, or (b) in internal investigations, business days thereafter, or by August [email protected] (DO audits, reviews, and evaluations relating 21, 2020. NOT FILE ON EDIS) on or before July to the programs, personnel, and DATES: June 30, 2020.

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FOR FURTHER INFORMATION CONTACT: Julie these investigations available to by a party to the investigations must be Duffy ((202) 708–2579), Office of authorized applicants representing served on all other parties to the Investigations, U.S. International Trade interested parties (as defined in 19 investigations (as identified by either Commission, 500 E Street SW, U.S.C. 1677(9)) who are parties to the the public or BPI service list), and a Washington, DC 20436. Hearing- investigations under the APO issued in certificate of service must be timely impaired persons can obtain the investigations, provided that the filed. The Secretary will not accept a information on this matter by contacting application is made not later than seven document for filing without a certificate the Commission’s TDD terminal on 202– days after the publication of this notice of service. 205–1810. Persons with mobility in the Federal Register. A separate Certification.—Pursuant to § 207.3 of impairments who will need special service list will be maintained by the the Commission’s rules, any person assistance in gaining access to the Secretary for those parties authorized to submitting information to the Commission should contact the Office receive BPI under the APO. Commission in connection with these of the Secretary at 202–205–2000. Conference.— In light of the investigations must certify that the General information concerning the restrictions on access to the Commission information is accurate and complete to Commission may also be obtained by building due to the COVID–19 the best of the submitter’s knowledge. In accessing its internet server (https:// pandemic, the Commission is making the certification, the submitter www.usitc.gov). The public record for conducting its Title VII (antidumping will acknowledge that any information these investigations may be viewed on and countervailing duty) preliminary that it submits to the Commission the Commission’s electronic docket phase staff conferences through during these investigations may be (EDIS) at https://edis.usitc.gov. submissions of written opening remarks disclosed to and used: (i) By the and written testimony, staff questions SUPPLEMENTARY INFORMATION: Commission, its employees and Offices, and written responses to those Background.—These investigations and contract personnel (a) for questions, and postconference briefs. are being instituted, pursuant to developing or maintaining the records Requests to appear at the conference sections 703(a) and 733(a) of the Tariff of these or related investigations or should be emailed to Act of 1930 (19 U.S.C. 1671b(a) and reviews, or (b) in internal investigations, [email protected] (DO 1673b(a)), in response to a petition filed audits, reviews, and evaluations relating NOT FILE ON EDIS) on or before July on June 30, 2020, by Insteel Industries to the programs, personnel, and 17, 2020. A nonparty who has testimony operations of the Commission including Inc., Mount Airy, North Carolina; Mid that may aid the Commission’s South Wire Company, Nashville, under 5 U.S.C. Appendix 3; or (ii) by deliberations may request permission to U.S. government employees and Tennessee; National Wire LLC, Conroe, participate by submitting a short Texas; Oklahoma Steel & Wire Co., contract personnel, solely for statement. Please note the Secretary’s cybersecurity purposes. All contract Madill, Oklahoma; and Wire Mesh Office will accept only electronic filings Corp., Houston, Texas. personnel will sign appropriate during this time. Filings must be made nondisclosure agreements. For further information concerning through the Commission’s Electronic the conduct of these investigations and Document Information System (EDIS, Authority: These investigations are being rules of general application, consult the https://edis.usitc.gov). No in-person conducted under authority of title VII of the Commission’s Rules of Practice and paper-based filings or paper copies of Tariff Act of 1930; this notice is published Procedure, part 201, subparts A and B pursuant to § 207.12 of the Commission’s any electronic filings will be accepted rules. (19 CFR part 201), and part 207, until further notice. subparts A and B (19 CFR part 207). Written submissions.—As provided in By order of the Commission. Participation in the investigations and §§ 201.8 and 207.15 of the Issued: July 1, 2020. public service list.—Persons (other than Commission’s rules, any person may Lisa Barton, petitioners) wishing to participate in the submit to the Commission on or before Secretary to the Commission. investigations as parties must file an July 24, 2020, a written brief containing [FR Doc. 2020–14537 Filed 7–6–20; 8:45 am] entry of appearance with the Secretary information and arguments pertinent to BILLING CODE 7020–02–P to the Commission, as provided in the subject matter of the investigations. §§ 201.11 and 207.10 of the Parties may file written opening remarks Commission’s rules, not later than seven and testimony to the Commission on or INTERNATIONAL TRADE days after publication of this notice in before July 17, 2020. Staff questions will COMMISSION the Federal Register. Industrial users be provided to the parties on July 21, [Investigation No. 337–TA–1192] and (if the merchandise under 2020, and written responses should be investigation is sold at the retail level) submitted to the Commission on or Certain Nicotine Pouches and representative consumer organizations before July 24, 2020. All written Components Thereof and Methods of have the right to appear as parties in submissions must conform with the Making the Same; Commission Commission antidumping duty and provisions of § 201.8 of the Determination Not To Review an Initial countervailing duty investigations. The Commission’s rules; any submissions Determination Terminating the Secretary will prepare a public service that contain BPI must also conform with Investigation in Its Entirety; list containing the names and addresses the requirements of §§ 201.6, 207.3, and Termination of the Investigation of all persons, or their representatives, 207.7 of the Commission’s rules. The who are parties to these investigations Commission’s Handbook on Filing AGENCY: U.S. International Trade upon the expiration of the period for Procedures, available on the Commission. filing entries of appearance. Commission’s website at https:// ACTION: Notice. Limited disclosure of business www.usitc.gov/documents/handbook_ proprietary information (BPI) under an on_filing_procedures.pdf, elaborates SUMMARY: Notice is hereby given that administrative protective order (APO) upon the Commission’s procedures with the U.S. International Trade and BPI service list.—Pursuant to respect to filings. Commission (‘‘Commission’’) has § 207.7(a) of the Commission’s rules, the In accordance with §§ 201.16(c) and determined not to review an initial Secretary will make BPI gathered in 207.3 of the rules, each document filed determination (‘‘ID’’) (Order No. 9) of

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the presiding administrative law judge On May 29, 2020, Complainants filed FOR FURTHER INFORMATION CONTACT: (‘‘ALJ’’) granting complainants’ an unopposed motion seeking to Lynde Herzbach, Office of the General unopposed motion to terminate the terminate this investigation in its Counsel, U.S. International Trade investigation in its entirety based on entirety based on withdrawal of the Commission, 500 E Street SW, withdrawal of the complaint. The complaint. Washington, DC 20436, telephone (202) investigation is terminated. On June 11, 2020, the presiding ALJ 205–3228. Copies of non-confidential issued the subject ID granting documents filed in connection with this FOR FURTHER INFORMATION CONTACT: Complainants’ motion. The ALJ found investigation may be viewed on the Michael Liberman, Esq., Office of the that the motion complies with the Commission’s electronic docket (EDIS) General Counsel, U.S. International Commission Rules, and that there are no at https://edis.usitc.gov. For help Trade Commission, 500 E Street SW, extraordinary circumstances that accessing EDIS, please email Washington, DC 20436, telephone (202) warrant denying the motion. No party [email protected]. General 205–2392. Copies of non-confidential petitioned for review of the ID. information concerning the Commission documents filed in connection with this The Commission has determined not may also be obtained by accessing its investigation may be viewed on the to review the subject ID. The internet server at https://www.usitc.gov. Commission’s electronic docket (EDIS) investigation is terminated. Hearing-impaired persons are advised at https://edis.usitc.gov. For help The Commission vote for this that information on this matter can be accessing EDIS, please email determination took place on June 30, obtained by contacting the [email protected]. General 2020. Commission’s TDD terminal on (202) information concerning the Commission The authority for the Commission’s 205–1810. may also be obtained by accessing its determination is contained in section SUPPLEMENTARY INFORMATION: On May internet server at https://www.usitc.gov. 337 of the Tariff Act of 1930, as 16, 2019, the Commission instituted this Hearing-impaired persons are advised amended (19 U.S.C. 1337), and in Part investigation based on a complaint filed that information on this matter can be 210 of the Commission’s Rules of by Mohawk Industries, Inc. of Calhoun, obtained by contacting the Practice and Procedure (19 CFR part Georgia; Flooring Industries Ltd. Sarl of Commission’s TDD terminal on (202) 210). Bertrange, Luxembourg; and IVC US Inc. 205–1810. By order of the Commission. of Dalton, Georgia (collectively, SUPPLEMENTARY INFORMATION: On March Issued: June 30, 2020. ‘‘Complainants’’). 84 FR 22161 (May 16, 12, 2020, the Commission instituted Inv. Lisa Barton, 2019). The complaint, as supplemented, No. 337–TA–1192, Certain Nicotine Secretary to the Commission. alleges a violation of section 337 of the Pouches and Components Thereof and [FR Doc. 2020–14467 Filed 7–6–20; 8:45 am] Tariff Act of 1930, as amended, 19 Methods of Making the Same, under U.S.C. 1337 (‘‘section 337’’) in the BILLING CODE 7020–02–P section 337 of the Tariff Act of 1930, as importation into the United States, the amended, 19 U.S.C. 1337 (‘‘section sale for importation, or the sale within 337’’), based on a complaint filed by INTERNATIONAL TRADE the United States after importation of NYZ AB of Stockholm, Sweden; COMMISSION certain luxury vinyl tiles by reason of Swedish Match North America, LLC of infringement of certain claims of U.S. Richmond, Virginia; Pinkerton Tobacco [Investigation No. 337–TA–1155] Patent Nos. 9,200,460 (‘‘the ’460 Co., LP of Owensboro, Kentucky; and patent’’); 10,208,490 (‘‘the ’490 patent’’); Certain Luxury Vinyl Tile and wm17 holding GmbH of Switzerland and 10,233,655 (‘‘the ’655 patent’’) Components Thereof; Commission (collectively, ‘‘Complainants’’). 85 FR (collectively, ‘‘the Asserted Patents’’). Determination To Review in Part and, 14505–06 (Mar. 12, 2020). A Id. The complaint further alleges that a on Review, To Affirm an Initial supplement to the complaint was filed domestic industry exists. Id. The Determination Granting Summary on February 21, 2020. The complaint Commission’s notice of investigation Determination of Violation by alleges a violation of section 337 based names forty-five respondents, including: Defaulting Respondents; Request for upon the importation into the United ABK Trading Corp. of Katy, Texas Written Submissions on Remedy, the States, the sale for importation, and the (‘‘ABK’’); Aurora Flooring LLC of Public Interest, and Bonding sale within the United States after Kennesaw, Georgia (‘‘Aurora’’); importation of certain nicotine pouches AGENCY: U.S. International Trade Changzhou Runchang Wood Co., Ltd. of and components thereof and methods of Commission. Jiangsu, China (‘‘Runchang’’); Go-Higher making the same by reason of ACTION: Notice. Trading (Jiangsu) Co., Ltd. of Jiangsu, infringement of certain claims of U.S. China (‘‘Go-Higher’’); Jiangsu Divine Patent No. 9,161,908 (‘‘the ’908 patent’’). SUMMARY: Notice is hereby given that Building Technology Development Co., Id. at 14505. The Commission’s notice the U.S. International Trade Ltd. Jiangsu, China (‘‘Divine’’); Jiangsu of investigation names as respondents Commission (‘‘Commission’’) has Lejia Plastic Co. Ltd. of Jiangsu, China The Art Factory AB of Helsingborg, determined to review in part and, on (‘‘Lejia’’); JiangSu Licheer Wood Co., Sweden; Kretek International, Inc. of review, to affirm an initial Ltd. of Jiangsu, China (‘‘Licheer’’); Moorpark, California; and DRYFT determination (‘‘ID’’) of the presiding Maxwell Flooring Distribution LLC of Sciences, LLC of Moorpark, California administrative law judge (‘‘ALJ’’) Houston, Texas (‘‘Maxwell Flooring’’); (collectively, ‘‘Respondents’’). Id. at granting summary determination of Mr. Hardwood Inc. of Acworth, Georgia 14506. The Commission’s Office of violation of section 337 by certain (‘‘Mr. Hardwood’’); and Sam Houston Unfair Import Investigations also was defaulting respondents. The Hardwood Inc. of Houston, Texas (‘‘Sam named as a party. Id. Subsequently, the Commission requests written Houston’’) (collectively, ‘‘Defaulting investigation was terminated as to submissions from the parties, interested Respondents’’). Id. The Office of Unfair claims 18 and 20 of the ’908 patent. government agencies, and interested Import Investigations (‘‘OUII’’) is also Order No. 7 (May 15, 2020), non- persons on the issues of remedy, the participating in the investigation. Id. reviewed in relevant part by public interest, and bonding, under the The Commission previously Commission Notice (June 15, 2020). schedule set forth below. terminated the investigation as to thirty-

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five respondents based on settlement, with respect to the ’460 patent. The article from entry into the United States consent order, or partial withdrawal of Commission has also determined to for purposes other than entry for the complaint. See Order No. 14 (Sept. review the ID’s findings regarding a consumption, the party should so 26, 2019), not rev’d, Notice (Oct. 17, domestic industry ‘‘in the process of indicate and provide information 2019); Order Nos. 15–21 (Sept. 27, 2019 being established’’ with respect to the establishing that activities involving for all), not rev’d, Notice (Oct. 17, 2019); ’490 and ’655 patents and affirms those other types of entry either are adversely Order Nos. 23–25 (Oct. 2, 2019 for all), findings but with the following affecting it or likely to do so. For not rev’d, Notice (Oct. 23, 2019); Order clarifications: The ID addresses the background, see Certain Devices for No. 27 (Oct. 9, 2019), not rev’d, Notice issue of domestic industry for the ’490 Connecting Computers via Telephone (Nov. 6, 2019); Order No. 26 (Oct. 9, and ’655 patents under the theory of Lines, Inv. No. 337–TA–360, USITC 2019)), not rev’d, Notice (Nov. 8, 2019); whether the industry is ‘‘in the process Pub. No. 2843, Comm’n Op. at 7–10 Order No. 30 (Oct. 25, 2019), not rev’d, of being established’’ since that is the (Dec. 1994). In addition, if a party seeks Notice (Nov. 21, 2019); Order No. 34 theory advanced by Complainants. In issuance of any cease and desist orders, (Nov. 7, 2019), not rev’d, Notice (Dec. affirming the ID’s findings, the the written submissions should address 11, 2019); Order No. 35 (Jan. 24, 2020), Commission does not intend to imply that request in the context of recent not rev’d, Notice (Feb. 25, 2020). that the investments already made with Commission opinions, including those On November 21, 2019, the respect to the ’490 and ’655 patents are in Certain Arrowheads with Deploying Commission found respondent Go- not substantial or could not be used to Blades and Components Thereof and Higher in default. See Order No. 31 show the existence of a domestic Packaging Therefor, Inv. No. 337–TA– (Oct. 25, 2019), not rev’d, Notice (Nov. industry under section 337(a)(3). 977, Comm’n Op. (Apr. 28, 2017) and 21, 2019). On November 22, 2019, the Further, although the ‘‘IVC Foamed Certain Electric Skin Care Devices, Commission found an additional eight Rigid LVT’’ product asserted by the Brushes and Chargers Therefor, and Kits respondents in default: ABK; Aurora; Complainants is not yet commercially Containing the Same, Inv. No. 337–TA– Divine; Lejia; Licheer; Maxwell manufactured, under Commission 959, Comm’n Op. (Feb. 13, 2017). Flooring; Mr. Hardwood; and Sam precedent there is no requirement that Specifically, if Complainants seek a Houston. See Order No. 32 (Oct. 30, there be a commercial domestic cease and desist order against a 2019), not rev’d, Notice (Nov. 22, 2019). industry product in order to establish an respondent, the written submissions On November 25, 2019, the Commission existing domestic industry. See Certain should respond to the following found respondent Runchang in default. Thermoplastic-Encapsulated Electric requests: See Order No. 33 (Oct. 30, 2019), not Motors, Components Thereof, and 1. Please identify with citations to the rev’d, Notice (Nov. 25, 2019). Products and Vehicles Containing Same record any information regarding On January 15, 2020, Complainants II, Inv. No. 337–TA–1073, Comm’n Op. commercially significant inventory in filed a motion for summary at 9 (Aug. 12, 2019) (public version). the United States as to each respondent determination of domestic industry and The Commission has also determined to against whom a cease and desist order violation of section 337 by the review the ID’s findings with respect to is sought. If Complainants also rely on Defaulting Respondents. Complainants the two products from non-parties, the other significant domestic operations filed supplements to their summary Quickstyle and Uniflor Aqua products. that could undercut the remedy determination motion on January 23, The Commission has determined not provided by an exclusion order, please 2020, February 11, 2020, and February to review the remainder of the ID, identify with citations to the record 19, 2020. including the findings that such information as to each respondent On February 12, 2020, OUII filed a Complainants have satisfied the against whom a cease and desist order response to Complainants’ motion. On domestic industry requirement under is sought. May 14, 2020, OUII filed a supplemental subsection 337(a)(3)(A) with respect to 2. In relation to the infringing response. the ’460 patent. Accordingly, the products, please identify any On May 15, 2020, the ALJ issued the Commission affirms the ID’s finding of information in the record, including subject ID (Order No. 36) granting the a violation of section 337 by the allegations in the pleadings, that motion for summary determination and Defaulting Respondents’ importation of addresses the existence of any domestic finding a violation of section 337 by the luxury vinyl tiles and components inventory, any domestic operations, or Defaulting Respondents. The ALJ thereof that infringe one or more of any sales-related activity directed at the recommended that the Commission claims 7–8, 13, 15–17, 20–23, and 30 of United States for each respondent issue a GEO and CDOs against the five the ’460 patent, claims 1–6, 8, 10–11, against whom a cease and desist order domestic respondents: ABK, Aurora, 13–16, and 18 of the ’490 patent, and is sought. Maxwell Flooring, Mr. Hardwood, and claims 1–4, 6–16, 18, and 20–26 of the 3. Please discuss any other basis upon Sam Houston. The ALJ also ’655 patent. which the Commission could enter a recommended setting a bond of $0.08 In connection with the final cease and desist order. per square foot of luxury vinyl tile disposition of this investigation, the 4. To the extent Complainants seek a product and components thereof statute authorizes issuance of, inter alia, cease and desist order against defaulting imported during the period of (1) an exclusion order that could result respondent Runchang, please address Presidential review. Id. No party in the exclusion of the subject articles whether the requirements of section petitioned for review of the subject ID. from entry into the United States and/ 337(g)(1)(A)–(E) are satisfied with Having reviewed the record of the or (2) cease and desist orders that could respect to Runchang. investigation, the Commission has result in the respondents being required The statute requires the Commission determined to review the subject ID in to cease and desist from engaging in to consider the effects of that remedy part, and on review, to affirm the ID’s unfair acts in the importation and sale upon the public interest. The public finding of violation. Specifically, the of such articles. Accordingly, the interest factors the Commission will Commission has determined to review Commission is interested in receiving consider include the effect that an and, on review, to take no position on written submissions that address the exclusion order would have on: (1) The the ID’s findings regarding the economic form of remedy, if any, that should be public health and welfare, (2) prong under subsection 337(a)(3)(B) ordered. If a party seeks exclusion of an competitive conditions in the U.S.

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economy, (3) U.S. production of articles Procedures, https://www.usitc.gov/ INTERNATIONAL TRADE that are like or directly competitive with documents/handbook_on_filing_ COMMISSION those that are subject to investigation, procedures.pdf). Persons with questions [Investigation No. 337–TA–1204] and (4) U.S. consumers. The regarding filing should contact the Commission is therefore interested in Secretary, (202) 205–2000. Certain Chemical Mechanical receiving written submissions that Any person desiring to submit a Planarization Slurries and Components address the aforementioned public Thereof: Institution of Investigation interest factors in the context of this document to the Commission in investigation. confidence must request confidential AGENCY: U.S. International Trade If the Commission orders some form treatment. All such requests should be Commission. of remedy, the U.S. Trade directed to the Secretary to the ACTION: Notice. Representative, as delegated by the Commission and must include a full President, has 60 days to approve, statement of the reasons why the SUMMARY: Notice is hereby given that a disapprove, or take no action on the Commission should grant such complaint was filed with the U.S. Commission’s determination. See treatment. See 19 CFR 201.6. Documents International Trade Commission on June Presidential Memorandum of July 21, for which confidential treatment by the 1, 2020, under section 337 of the Tariff 2005, 70 FR 43251 (July 26, 2005). Commission is properly sought will be Act of 1930, as amended, on behalf of During this period, the subject articles treated accordingly. A redacted non- Cabot Microelectronics Corporation of Aurora, Illinois. The complaint alleges would be entitled to enter the United confidential version of the document violations of section 337 based upon the States under bond, in an amount must also be filed simultaneously with importation into the United States, the determined by the Commission and any confidential filing. All information, prescribed by the Secretary of the sale for importation, and the sale within including confidential business the United States after importation of Treasury. The Commission is therefore information and documents for which interested in receiving submissions certain chemical mechanical confidential treatment is properly concerning the amount of the bond that planarization (‘‘CMP’’) slurries and sought, submitted to the Commission for should be imposed if a remedy is components thereof by reason of ordered. purposes of this investigation may be infringement of U.S. Patent No. Written Submissions: Parties to the disclosed to and used: (i) By the 9,499,721 (‘‘the ’721 patent’’). The investigation, interested government Commission, its employees and Offices, complaint further alleges that an agencies, and any other interested and contract personnel (a) for industry in the United States exists as parties are encouraged to file written developing or maintaining the records required by the applicable Federal submissions on the issues of remedy, of this or a related proceeding, or (b) in Statute. The complainant requests that the public interest, and bonding. Such internal investigations, audits, reviews, the Commission institute an submissions should address the and evaluations relating to the investigation and, after the recommended determination by the ALJ programs, personnel, and operations of investigation, issue a limited exclusion on remedy and bonding. the Commission including under 5 order and cease and desist orders. In their initial submission, U.S.C. Appendix 3; or (ii) by U.S. ADDRESSES: The complaint, except for Complainants are also requested to government employees and contract any confidential information contained identify the remedy sought and personnel, solely for cybersecurity therein, may be viewed on the Complainants and OUII are requested to purposes. All contract personnel will Commission’s electronic docket (EDIS) submit proposed remedial orders for the sign appropriate nondisclosure at https://edis.usitc.gov. For help Commission’s consideration. accessing EDIS, please email agreements. All nonconfidential written Complainants are further requested to [email protected]. Hearing impaired submissions will be available for public state the dates that the Asserted Patents individuals are advised that information expire, the HTSUS subheadings under inspection on EDIS. on this matter can be obtained by which the accused products are The Commission vote for this contacting the Commission’s TDD imported, and to supply the determination took place on June 30, terminal on (202) 205–1810. Persons identification information for all known 2020. with mobility impairments who will importers of the products at issue in this The authority for the Commission’s need special assistance in gaining access investigation. The initial written determination is contained in section to the Commission should contact the submissions and proposed remedial 337 of the Tariff Act of 1930, as Office of the Secretary at (202) 205– orders must be filed no later than close amended (19 U.S.C. 1337), and in part 2000. General information concerning of business on July 15, 2020. Reply the Commission may also be obtained 210 of the Commission’s Rules of submissions must be filed no later than by accessing its internet server at Practice and Procedure (19 CFR part the close of business on July 22, 2020. https://www.usitc.gov. 210). No further submissions on these issues FOR FURTHER INFORMATION CONTACT: will be permitted unless otherwise By order of the Commission. Pathenia M. Proctor, The Office of ordered by the Commission. Issued: June 30, 2020. Unfair Import Investigations, U.S. Persons filing written submissions Lisa Barton, International Trade Commission, must file the original document Secretary to the Commission. telephone (202) 205–2560. electronically on or before the deadlines SUPPLEMENTARY INFORMATION: stated above. The Commission’s paper [FR Doc. 2020–14500 Filed 7–6–20; 8:45 am] filing requirements in 19 CFR 210.4(f) BILLING CODE 7020–02–P Authority: The authority for institution of are currently waived. 85 FR 15798 this investigation is contained in section 337 of the Tariff Act of 1930, as amended, 19 (March 19, 2020). Submissions should U.S.C. 1337, and in section 210.10 of the refer to the investigation number (Inv. Commission’s Rules of Practice and No. 337–TA–1155) in a prominent place Procedure, 19 CFR 210.10 (2020). on the cover page and/or the first page. Scope of Investigation: Having (See Handbook for Electronic Filing considered the complaint, the U.S.

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International Trade Commission, on U.S. International Trade Commission, the United States after importation of June 30, 2020, ORDERED THAT— shall designate the presiding certain completion drill bits and (1) Pursuant to subsection (b) of Administrative Law Judge. products containing the same by reason section 337 of the Tariff Act of 1930, as Responses to the complaint and the of infringement of certain claims of U.S. amended, an investigation be instituted notice of investigation must be Patent No. 10,538,970 (‘‘the ’970 to determine whether there is a submitted by the named respondents in patent’’). The complaint further alleges violation of subsection (a)(1)(B) of accordance with section 210.13 of the that an industry in the United States section 337 in the importation into the Commission’s Rules of Practice and exists as required by the applicable United States, the sale for importation, Procedure, 19 CFR 210.13. Pursuant to Federal Statute. or the sale within the United States after 19 CFR 201.16(e) and 210.13(a), as The complainant requests that the importation of certain products amended in 85 FR 15798 (March 19, Commission institute an investigation identified in paragraph (2) by reason of 2020), such responses will be and, after the investigation issue a infringement of one or more of claims 1, considered by the Commission if limited exclusion order and cease and 3–6, 10, 11, 13, 14, 18–20, 24, 26–29, 31, received not later than 20 days after the desist orders. 35–37, and 39–44 of the ’721 patent; and date of service by the complainant of the Addresses: The complaint, except for whether an industry in the United complaint and the notice of any confidential information contained States exists as required by subsection investigation. Extensions of time for therein, may be viewed on the (a)(2) of section 337; submitting responses to the complaint Commission’s electronic docket (EDIS) (2) Pursuant to section 210.10(b)(1) of and the notice of investigation will not at https://edis.usitc.gov. For help the Commission’s Rules of Practice and be granted unless good cause therefor is accessing EDIS, please email Procedure, 19 CFR 210.10(b)(1), the shown. [email protected]. Hearing impaired plain language description of the Failure of a respondent to file a timely individuals are advised that information accused products or category of accused response to each allegation in the on this matter can be obtained by products, which defines the scope of the complaint and in this notice may be contacting the Commission’s TDD investigation, is ‘‘chemical mechanical deemed to constitute a waiver of the terminal on (202) 205–1810. Persons planarization (‘‘CMP’’) slurries and right to appear and contest the with mobility impairments who will components thereof, including colloidal allegations of the complaint and this need special assistance in gaining access silica’’; notice, and to authorize the to the Commission should contact the (3) For the purpose of the administrative law judge and the Office of the Secretary at (202) 205– investigation so instituted, the following Commission, without further notice to 2000. General information concerning are hereby named as parties upon which the respondent, to find the facts to be as the Commission may also be obtained this notice of investigation shall be alleged in the complaint and this notice by accessing its internet server at served: and to enter an initial determination https://www.usitc.gov. (a) The complainant is: and a final determination containing FOR FURTHER INFORMATION CONTACT: Cabot Microelectronics Corporation, 870 such findings, and may result in the N. Commons Drive, Aurora, IL 60504, Katherine Hiner, Office of Docket issuance of an exclusion order or a cease Services, U.S. International Trade P.O. Box 2026, Aurora, IL 60507 and desist order or both directed against (b) The respondents are the following Commission, telephone (202) 205–1802. the respondent. entities alleged to be in violation of SUPPLEMENTARY INFORMATION: Authority: section 337, and are the parties upon By order of the Commission. The authority for institution of this which the complaint is to be served: Issued: July 1, 2020. investigation is contained in section 337 DuPont de Nemours, Inc., 974 Centre Lisa Barton, of the Tariff Act of 1930, as amended, Road, Building 730, Wilmington, DE Secretary to the Commission. 19 U.S.C. 1337, and in section 210.10 of 19805–1269 [FR Doc. 2020–14538 Filed 7–6–20; 8:45 am] the Commission’s Rules of Practice and Procedure, 19 CFR 210.10 (2019). Rohm and Haas Electronic Materials BILLING CODE 7020–02–P CMP Inc., 451 Bellevue Road, Scope of Investigation: Having Newark, DE 19713–3431 considered the complaint, the U.S. Rohm and Haas Electronic Materials INTERNATIONAL TRADE International Trade Commission, on CMP Asia Inc. (d/b/a Rohm and Haas COMMISSION June 30, 2020, ordered that— Electronic Materials CMP Asia Inc., (1) Pursuant to subsection (b) of Taiwan Branch (U.S.A.)), 4F., NO.6, [Investigation No. 337–TA–1205] section 337 of the Tariff Act of 1930, as amended, an investigation be instituted LN. 280, Zhongshan N Rd., Dayuan Certain Completion Drill Bits and to determine whether there is a Dist., Taoyuan City, 337017 Taiwan Products Containing the Same violation of subsection (a)(1)(B) of Rohm and Haas Electronic Materials Institution of Investigation Asia-Pacific Co., Ltd., 6, Kesi 2nd Rd., section 337 in the importation into the Chunan, Miaoli, 350401 Taiwan AGENCY: U.S. International Trade United States, the sale for importation, Rohm and Haas Electronic Materials Commission. or the sale within the United States after K.K., Sanno Park Tower, 2–11–1, ACTION: Notice. importation of certain products Nagata-cho, Chiyoda-ku, Tokyo 100– identified in paragraph (2) by reason of 0014 Japan SUMMARY: Notice is hereby given that a infringement of one or more of claims Rohm and Haas Electronic Materials complaint was filed with the U.S. 1–3, 5–10, 12, 16, and 18–20 of the ’970 LLC, 455 Forest Street, Marlborough, International Trade Commission on June patent; and whether an industry in the MA 01752–3001 4, 2020, under section 337 of the Tariff United States exists as required by (c) The Office of Unfair Import Act of 1930, as amended, on behalf of subsection (a)(2) of section 337; Investigations, U.S. International Trade Varel International Industries, LLC of (2) Pursuant to section 210.10(b)(1) of Commission, 500 E Street SW, Suite Carrollton, Texas. The complaint alleges the Commission’s Rules of Practice and 401, Washington, DC 20436; and violations of section 337 based upon the Procedure, 19 CFR 210.10(b)(1), the (4) For the investigation so instituted, importation into the United States, the plain language description of the the Chief Administrative Law Judge, sale for importation, and the sale within accused products or category of accused

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products, which defines the scope of the complaint and the notice of DATES: Registered bulk manufacturers of investigation, is ‘‘drill bits for drilling investigation. Extensions of time for the affected basic class(es), and frack plugs to complete a well’’; submitting responses to the complaint applicants therefore, may file written (3) For the purpose of the and the notice of investigation will not comments on or objections to the investigation so instituted, the following be granted unless good cause therefor is issuance of the proposed registration on are hereby named as parties upon which shown. or before August 6, 2020. Such persons this notice of investigation shall be Failure of a respondent to file a timely may also file a written request for a served: response to each allegation in the hearing on the application on or before complaint and in this notice may be (a) The complainant is: Varel August 6, 2020. International Industries, LLC, 1625 West deemed to constitute a waiver of the Crosby Rd., Suite 124, Carrollton, Texas right to appear and contest the ADDRESSES: Written comments should 75006. allegations of the complaint and this be sent to: Drug Enforcement (b) The respondents are the following notice, and to authorize the Administration, Attention: DEA Federal entities alleged to be in violation of administrative law judge and the Register Representative/DPW, 8701 section 337, and are the parties upon Commission, without further notice to Morrissette Drive, Springfield, Virginia which the complaint is to be served: the respondent, to find the facts to be as 22152. All requests for a hearing must Kingdream Public Ltd. Co., No. 80 alleged in the complaint and this notice be sent to: Drug Enforcement Miaoshan Rd., Wuhan City, Hubei and to enter an initial determination Administration, Attn: Administrator, China Hubei 430223 CN. and a final determination containing 8701 Morrissette Drive, Springfield, such findings, and may result in the Taurex Drill Bits, LLC, 2651 Venture Virginia 22152. All request for a hearing issuance of an exclusion order or a cease Drive, Norman, OK 73069. should also be sent to: (1) Drug (4) For the investigation so instituted, and desist order or both directed against Enforcement Administration, Attn: the Chief Administrative Law Judge, the respondent. Hearing Clerk/OALJ, 8701 Morrissette U.S. International Trade Commission, By order of the Commission. shall designate the presiding Drive, Springfield, Virginia 22152; and Issued: July 1, 2020. (2) Drug Enforcement Administration, Administrative Law Judge. Lisa Barton, The office of Unfair Import Attn: DEA Federal Register Secretary to the Commission. Investigations will not be named as a Representative/DPW, 8701 Morrissette party to this investigation. [FR Doc. 2020–14573 Filed 7–6–20; 8:45 am] Drive, Springfield, Virginia 22152. BILLING CODE 7020–02–P Responses to the complaint and the SUPPLEMENTARY INFORMATION: In notice of investigation must be accordance with 21 CFR 1301.34(a), this submitted by the named respondents in DEPARTMENT OF JUSTICE is notice that on June 4, 2020, Lipomed, accordance with section 210.13 of the 150 Cambridgepark Drive, Suite 705, Commission’s Rules of Practice and Drug Enforcement Administration Cambridge, Massachusetts 02140, Procedure, 19 CFR 210.13. Pursuant to applied to be registered as an importer 19 CFR 201.16(e) and 210.13(a), as [Docket No. DEA–672] amended in 85 FR 15798 (March 19, of the following basic class(es) of 2020), such responses will be Importer of Controlled Substances controlled substances: considered by the Commission if Application: Lipomed received not later than 20 days after the ACTION: Notice of application. date of service by the complainant of the

Controlled substance Drug code Schedule

Ethyl 2-(1-(5-fluoropentyl)-1H-indazole-3-carboxamido) 3,3-dimethylbutanoate) ...... 7036 I N-(Adamantan-1-yl)-1-(4-fluorobenzyl)-1H-indazole-3-carboximide) ...... 7047 I 1-(5-Fluoropentyl)-1H-indazole-3-carboxamide ...... 7083 I 4-methyl-alpha-ethylaminopentiophenone (4-MEAP) ...... 7245 I N-ethylhexedrone ...... 7246 I 4-chloro-alpha-pyrrolidinovalerophenone (4-chloro-a-PVP) ...... 7443 I a-PHP, alpha-Pyrrolidinohexanophenone ...... 7544 I PV8, alpha-Pyrrolidinoheptaphenone ...... 7548 I Norfentanyl ...... 8366 I

The company plans to import the extend to the import of Food and Drug DEPARTMENT OF JUSTICE above controlled substances as Administration (FDA)-approved or non- analytical reference standards for approved finished dosage forms for Notice of Lodging of Proposed distribution to its customers for research commercial sale. Consent Decree Under the Resource and analytical purposes. Placement of Conservation and Recovery Act these drug codes onto the company’s William T. McDermott, registration does not translate into Assistant Administrator. On June 30, 2020, the Department of automatic approval of subsequent [FR Doc. 2020–14605 Filed 7–6–20; 8:45 am] Justice lodged a proposed Consent permit applications to import controlled BILLING CODE P Decree with the United States District substances. Approval of permit Court for the Southern District of New applications will occur only when the York in a lawsuit entitled United States registrant’s business activity is v. Chestnut Petroleum Distributors, Inc., consistent with what is authorized in 21 et al., Civil Action No. 19 Civ. 3904 U.S.C. 952(a)(2). Authorization will not (PHM) (JCM).

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In this action, the United States reproduction cost) payable to the United LSC has removed sections that sought, as provided under Subtitle I of States Treasury. provided general accounting and financial guidance, because neither LSC the Resource Conservation and Henry S. Friedman, Recovery Act and its related regulations nor grantees found these sections useful. Assistant Section Chief, Environmental The Financial Accounting Standards (the ‘‘Underground Storage Tank Enforcement Section, Environment and Regulations’’), penalties and injunctive Natural Resources Division. Board (FASB) establishes and updates relief for the failure of defendants the generally accepted accounting [FR Doc. 2020–14568 Filed 7–6–20; 8:45 am] principles (GAAP) that provide the Chestnut Petroleum Distributors, Inc., BILLING CODE 4410–15–P CPD Energy Corp., CPD NY Energy applicable accounting methods and Corp., Chestnut Mart of Gardiner, Inc., practices. The draft Financial Guide references GAAP requirements rather Chestnut Marts, Inc., Greenburgh Food LEGAL SERVICES CORPORATION Mart, Inc., Middletown Food Mart, Inc., than restating them. Overall, the draft Financial Guide and NJ Energy Corp. to comply with the Legal Services Corporation Financial conforms to existing LSC and grantee Underground Storage Tank Regulations Guide; Request for Comments practices and requirements. at twenty gas stations within the AGENCY: Legal Services Corporation. Additionally, in some places, the draft Southern District of New York and ACTION: Request for comments. Financial Guide sets out requirements adjoining districts. The proposed that have not previously been published Consent Decree resolves the United SUMMARY: The Legal Services for comment. States’ claims and requires defendants Corporation (‘‘LSC’’) has drafted LSC has published on the Matters for to pay a civil penalty of $187,500 and revisions to its Accounting Guide and Comment web page on www.lsc.gov the comply with various injunctive retitled it as the Financial Guide. LSC draft Financial Guide for comment and measures. seeks comments on the draft Financial a reference guide to the draft updates The publication of this notice opens Guide. and new requirements. LSC seeks the public comment period on the DATES: All comments must be received comments on the entire draft Financial proposed Consent Decree. Comments on or before the close of business on Guide, particularly the sections with should be addressed to Jeffrey Bossert October 15, 2020. significant changes. LSC will review the Clark, Assistant Attorney General, ADDRESSES: You may submit comments comments and, if possible, implement Environment and Natural Resources by any of the following methods. the Financial Guide with any Division, and should refer to United Instructions: Electronic submissions appropriate revisions before January 1, 2021. States v. Chestnut Petroleum are preferred via email with attachments in Acrobat PDF format. LSC may not LSC also seeks comment on the Distributors, Inc., et al., Civil Action No. consider written comments sent via any following question: 19 Civ. 3904 (PHM) (JCM), D.J. Ref. 90– other method or received after the end Should LSC implement the new 7–1–11162. All comments must be of the comment period. Financial Guide as of a single date for submitted no later than 30 days after the Email: [email protected]. Please all grantees (e.g., January 1, 2021) or by publication date of this notice. include ‘‘Financial Guide Comment’’ in applying it to each grantee with the start Comments may be submitted either by the subject line of the message. of the grantee’s new fiscal year. email or by mail: Fax, U.S. Mail, Hand Delivery, or Dated: July 1, 2020. Courier: Please call 202–295–1623 for Mark Freedman, To submit comments: Send them to: instructions if you need to send materials by one of these methods. Senior Associate General Counsel. By email ...... pubcomment-ees. [FR Doc. 2020–14580 Filed 7–6–20; 8:45 am] FOR FURTHER INFORMATION CONTACT: [email protected]. BILLING CODE 7050–01–P By mail ...... Jeffrey Bossert Clark, Mark Freedman, Senior Associate Assistant Attorney General Counsel, (202) 295–1623 or General, U.S. [email protected]. DOJ—ENRD, P.O. SUPPLEMENTARY INFORMATION: The Legal NATIONAL AERONAUTICS AND Box 7611, Wash- Services Corporation (LSC) has SPACE ADMINISTRATION ington, DC 20044– conducted a comprehensive review of 7611. the Accounting Guide for LSC [Notice (20–061)] Recipients, 2010 Edition. Based on During the public comment period, Planetary Science Advisory input from LSC grantees and LSC fiscal Committee; Meeting the Consent Decree may be examined compliance analysis staff, LSC believes and downloaded at this Justice that the format of the Accounting Guide AGENCY: National Aeronautics and Department website: http:// no longer best serves grantees or LSC. Space Administration. _ www.usdoj.gov/enrd/Consent LSC has restructured the document and ACTION: Notice of meeting. Decrees.html. We will provide paper renamed it the Financial Guide. The copies of the Consent Decree upon new draft Financial Guide removes SUMMARY: In accordance with the written request and payment of outdated or inapplicable materials, Federal Advisory Committee Act, as reproduction costs. Please email your improves materials directly related to amended, the National Aeronautics and request and payment to: Consent Decree LSC-specific issues, and adds clarity Space Administration (NASA) Library, U.S. DOJ–ENRD, P.O. Box 7611, about both required and recommended announces a meeting of the Planetary Washington, DC 20044–7611. financial practices. The draft Financial Science Advisory Committee. The Guide also addresses areas that were meeting will be held for the purpose of Please enclose a check or money order previously identified as problematic, soliciting, from the scientific for $4.75 (25 cents per page such as Cost Allocation, and assists community and other persons, scientific grantees in the financial management of and technical information relevant to LSC grants. program planning.

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DATES: Monday, August 17, 2020, 10:00 FOR FURTHER INFORMATION CONTACT: Ms. stream webcast for viewing and audio a.m. to 6:00 p.m.; and Tuesday, August Angela Ponmakha, 703–614–6379 access to the virtual meeting should 18, 2020, 10:00 a.m. to 6:00 p.m.; (Voice), [email protected]. Mailing register on the Commission’s website, Eastern Time. address: Designated Federal Officer, https://www.nscai.gov. Registration will ADDRESSES: Virtual meeting via dial-in National Security Commission on be available from July 8, 2020 through teleconference and WebEx only. Artificial Intelligence, 2530 Crystal July 15, 2020. Members of the media FOR FURTHER INFORMATION CONTACT: Ms. Drive, Box 45, Arlington, VA 22202. should RSVP to the Commission’s press Karshelia Henderson, Science Mission website: https://www.nscai.gov. The office at [email protected]. Special Accommodations: Individuals Directorate, NASA Headquarters, most up-to-date information about the requiring special accommodations to Washington, DC 20546, (202) 358–2355, meeting and the Commission can be access the public meeting should fax (202) 358–2779, or khenderson@ found on the website. contact the DFO, see the FOR FURTHER nasa.gov. SUPPLEMENTARY INFORMATION: This meeting is being held under the INFORMATION CONTACT section for contact SUPPLEMENTARY INFORMATION: As noted provisions of the Federal Advisory information, no later than July 15, 2020, above, this meeting will be available Committee Act (FACA) (5 U.S.C., so that appropriate arrangements can be telephonically and by WebEx only. You Appendix), the Government in the made. must use a touch-tone phone to Sunshine Act (5 U.S.C. 552b), and 41 Access to Records of the Meeting: participate in this meeting. Any CFR 102–3.140 and 102–3.150. Pursuant to FACA requirements, the interested person may call the USA toll Purpose of the Meeting: The John S. public may inspect the meeting free conference call number 1–800–779– McCain National Defense Authorization materials for the July 20, 2020 virtual 9966 or toll number 1–517–645–6359, Act for Fiscal Year 2019 (FY19 NDAA), meeting on the Commission’s website at passcode 5255996, on both days, to Sec. 1051, Public Law 115–232, 132 https://www.nscai.gov three business participate in this meeting by telephone. Stat. 1636, 1962–65 (2018), created the days prior to July 20, 2020. The WebEx link is https:// Commission to ‘‘consider the methods Written Statements: Written nasaenterprise.webex.com/; the meeting and means necessary to advance the comments may be submitted to the DFO number is 901 917 366 and the development of artificial intelligence, via email to: [email protected] in password is PAC@Aug17+18 (case machine learning, and associated either Adobe Acrobat or Microsoft Word sensitive) on both days. The agenda for technologies by the United States to format. The DFO will compile all the meeting includes the following comprehensively address the national written submissions and provide them topics: security and defense needs of the to the Commissioners for consideration. —Planetary Science Division Update United States.’’ The Commission will Please note that all submitted comments —Planetary Science Division Research consider potential recommendations to will be treated as public documents and and Analysis Program Update Congress and the Executive Branch. will be made available for public It is imperative that the meeting be Agenda: The meeting will begin on inspection, including, but not limited held on these dates to accommodate the July 20, 2020 at 1:30 p.m. EST with to, being posted on the Commission’s scheduling priorities of the key opening remarks by the Designated website. participants. Federal Officer, Ms. Angela Ponmakha; Dated: July 1, 2020. the Executive Director, Mr. Yll Michael Gable, Patricia Rausch, Bajraktari; and the Commission Chair, Chief of Staff. Advisory Committee Management Officer, Dr. Eric Schmidt. Chairs of the working National Aeronautics and Space [FR Doc. 2020–14587 Filed 7–6–20; 8:45 am] Administration. groups studying each of the BILLING CODE 3610–Y8–P Commission’s lines of effort (LOEs) will [FR Doc. 2020–14465 Filed 7–6–20; 8:45 am] present the recommendations from their BILLING CODE 7510–13–P respective LOEs for consideration by the NUCLEAR REGULATORY entire Commission. The Commission’s COMMISSION LOEs: LOE 1—Invest in AI Research & NATIONAL SECURITY COMMISSION Development and Software; LOE 2— [NRC–2020–0135] ON ARTIFICIAL INTELLIGENCE Apply AI to National Security Missions; LOE 3—Train and Recruit AI Talent; Applications and Amendments to [Docket No.: 07–2020–01] LOE 4—Protect and Build Upon U.S. Facility Operating Licenses and Combined Licenses Involving National Security Commission on Technological Advantages & Hardware; LOE 5—Marshal Global AI Cooperation; Proposed No Significant Hazards Artificial Intelligence; Notice of Federal Considerations and Containing Advisory Committee Meeting and LOE 6—Ethics and Responsible AI. The Commission will deliberate on Sensitive Unclassified Non-Safeguards AGENCY: National Security Commission the presented recommendations and Information and Order Imposing on Artificial Intelligence. vote on their inclusion in the Procedures for Access to Sensitive Unclassified Non-Safeguards ACTION: Notice of Federal Advisory Commission’s second quarterly Information Committee virtual public meeting. memorandum to Congress and the Administration. The meeting will AGENCY: Nuclear Regulatory SUMMARY: The National Security adjourn at 4:00 p.m. EST. Commission. Commission on Artificial Intelligence Meeting Accessibility: Pursuant to ACTION: License amendment request; (the ‘‘Commission’’) is publishing this Federal statutes and regulations (the notice of opportunity to comment, notice to announce that the following FACA, the Sunshine Act, and 41 CFR request a hearing, and petition for leave Federal Advisory Committee virtual 102–3.140 through 102–3.165) and the to intervene; order imposing public meeting will take place. availability of space, the virtual meeting procedures. DATES: Monday, July 20, 2020, 1:30 p.m. is open to the public from 1:30 p.m. to to 4:00 p.m. Eastern Standard Time 4:00 p.m. EST. Members of the public SUMMARY: The U.S. Nuclear Regulatory (EST). wishing to receive a link to the live Commission (NRC) received and is

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considering approval of one amendment • Federal Rulemaking Website: Go to This notice includes a notice of request. The amendment request is for https://www.regulations.gov and search amendment containing SUNSI. Salem Nuclear Generating Station, Unit for Docket ID NRC–2020–0135. III. Notice of Consideration of Issuance Nos. 1 and 2. For the amendment • NRC’s Agencywide Documents of Amendments to Facility Operating request, the NRC proposes to determine Access and Management System Licenses and Combined Licenses, that it involves no significant hazards (ADAMS): You may obtain publicly- Proposed No Significant Hazards consideration. Because the amendment available documents online in the Consideration Determination, and request contains sensitive unclassified ADAMS Public Documents collection at Opportunity for a Hearing non-safeguards information (SUNSI), an https://www.nrc.gov/reading-rm/ order imposes procedures to obtain adams.html. To begin the search, select The Commission has made a access to SUNSI for contention ‘‘Begin Web-based ADAMS Search.’’ For proposed determination that the preparation. problems with ADAMS, please contact following amendment request involves no significant hazards consideration. DATES: Comments must be filed by the NRC’s Public Document Room (PDR) reference staff at 1–800–397–4209, 301– Under the Commission’s regulations in August 6, 2020. A request for a hearing 10 CFR 50.92, this means that operation or petitions for leave to intervene must 415–4737, or by email to pdr.resource@ nrc.gov. The ADAMS accession number of the facility in accordance with the be filed by September 8, 2020. Any proposed amendment would not (1) potential party as defined in § 2.4 of title for each document referenced (if it is available in ADAMS) is provided the involve a significant increase in the 10 of the Code of Federal Regulations probability or consequences of an (10 CFR), who believes access to SUNSI first time that it is mentioned in this document. accident previously evaluated, or (2) is necessary to respond to this notice create the possibility of a new or must request document access by July B. Submitting Comments different kind of accident from any 17, 2020. accident previously evaluated, or (3) Please include Docket ID NRC–2020– involve a significant reduction in a ADDRESSES: You may submit comments 0135, facility name, unit number(s), margin of safety. The basis for this by any of the following methods: docket number(s), application date, and proposed determination for the • Federal Rulemaking Website: Go to subject in your comment submission. amendment request is shown below. https://www.regulations.gov and search The NRC cautions you not to include for Docket ID NRC–2020–0135. Address The Commission is seeking public identifying or contact information that comments on this proposed questions about NRC Docket IDs in you do not want to be publicly Regulations.gov to Jennifer Borges; determination. Any comments received disclosed in your comment submission. within 30 days after the date of telephone: 301–287–9127; email: The NRC will post all comment [email protected]. For technical publication of this notice will be submissions at https:// considered in making any final questions, contact the individual listed www.regulations.gov as well as enter the in the FOR FURTHER INFORMATION determination. comment submissions into ADAMS. Normally, the Commission will not CONTACT section of this document. The NRC does not routinely edit issue the amendment until the • Mail Comments to: Office of comment submissions to remove expiration of 60 days after the date of Administration, Mail Stop: TWFN–7– identifying or contact information. publication of this notice. The A60M, U.S. Nuclear Regulatory If you are requesting or aggregating Commission may issue the license Commission, Washington, DC 20555– comments from other persons for amendment before expiration of the 60- 0001, ATTN: Program Management, submission to the NRC, then you should day period provided that its final Announcements and Editing Staff. inform those persons not to include determination is that the amendment For additional direction on obtaining identifying or contact information that involves no significant hazards information and submitting comments, they do not want to be publicly consideration. In addition, the see ‘‘Obtaining Information and disclosed in their comment submission. Commission may issue the amendment Submitting Comments’’ in the Your request should state that the NRC prior to the expiration of the 30-day SUPPLEMENTARY INFORMATION section of does not routinely edit comment comment period if circumstances this document. submissions to remove such information change during the 30-day comment FOR FURTHER INFORMATION CONTACT: before making the comment period such that failure to act in a Shirley Rohrer, Office of Nuclear submissions available to the public or timely way would result, for example, Reactor Regulation, telephone: 301– entering the comment into ADAMS. in derating or shutdown of the facility. 415–5411, email: Shirley.Rohrer@ II. Background If the Commission takes action prior to nrc.gov, U.S. Nuclear Regulatory the expiration of either the comment Commission, Washington, DC 20555– Pursuant to Section 189a.(2) of the period or the notice period, it will 0001. Atomic Energy Act of 1954, as amended publish a notice of issuance in the (the Act), the NRC is publishing this SUPPLEMENTARY INFORMATION: Federal Register. If the Commission notice. The Act requires the makes a final no significant hazards I. Obtaining Information and Commission to publish notice of any consideration determination, any Submitting Comments amendments issued, or proposed to be hearing will take place after issuance. issued and grants the Commission the A. Obtaining Information The Commission expects that the need authority to issue and make to take this action will occur very Please refer to Docket ID NRC–2020– immediately effective any amendment infrequently. 0135, facility name, unit number(s), to an operating license or combined docket number(s), application date, and license, as applicable, upon a A. Opportunity To Request a Hearing subject when contacting the NRC about determination by the Commission that and Petition for Leave To Intervene the availability of information for this such amendment involves no significant Within 60 days after the date of action. You may obtain publicly- hazards consideration, notwithstanding publication of this notice, any persons available information related to this the pendency before the Commission of (petitioner) whose interest may be action by any of the following methods: a request for a hearing from any person. affected by this action may file a request

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for a hearing and petition for leave to evidence, consistent with the NRC’s thereof may participate as a non-party intervene (petition) with respect to the regulations, policies, and procedures. under 10 CFR 2.315(c). action. Petitions shall be filed in Petitions must be filed no later than If a hearing is granted, any person accordance with the Commission’s 60 days from the date of publication of who is not a party to the proceeding and ‘‘Agency Rules of Practice and this notice. Petitions and motions for is not affiliated with or represented by Procedure’’ in 10 CFR part 2. Interested leave to file new or amended a party may, at the discretion of the persons should consult a current copy contentions that are filed after the presiding officer, be permitted to make of 10 CFR 2.309. The NRC’s regulations deadline will not be entertained absent a limited appearance pursuant to the are accessible electronically from the a determination by the presiding officer provisions of 10 CFR 2.315(a). A person NRC Library on the NRC’s website at that the filing demonstrates good cause making a limited appearance may make https://www.nrc.gov/reading-rm/doc- by satisfying the three factors in 10 CFR an oral or written statement of his or her collections/cfr/. If a petition is filed, the 2.309(c)(1)(i) through (iii). The petition position on the issues but may not Commission or a presiding officer will must be filed in accordance with the otherwise participate in the proceeding. rule on the petition and, if appropriate, filing instructions in the ‘‘Electronic A limited appearance may be made at a notice of a hearing will be issued. Submissions (E-Filing)’’ section of this any session of the hearing or at any As required by 10 CFR 2.309(d) the document. prehearing conference, subject to the petition should specifically explain the If a hearing is requested, and the limits and conditions as may be reasons why intervention should be Commission has not made a final imposed by the presiding officer. Details permitted with particular reference to determination on the issue of no regarding the opportunity to make a the following general requirements for significant hazards consideration, the limited appearance will be provided by standing: (1) The name, address, and Commission will make a final the presiding officer if such sessions are telephone number of the petitioner; (2) determination on the issue of no scheduled. the nature of the petitioner’s right under significant hazards consideration. The B. Electronic Submissions (E-Filing) the Act to be made a party to the final determination will serve to All documents filed in NRC proceeding; (3) the nature and extent of establish when the hearing is held. If the the petitioner’s property, financial, or adjudicatory proceedings, including a final determination is that the other interest in the proceeding; and (4) request for hearing and petition for amendment request involves no the possible effect of any decision or leave to intervene (petition), any motion significant hazards consideration, the order which may be entered in the or other document filed in the Commission may issue the amendment proceeding on the petitioner’s interest. proceeding prior to the submission of a In accordance with 10 CFR 2.309(f), and make it immediately effective, request for hearing or petition to the petition must also set forth the notwithstanding the request for a intervene, and documents filed by specific contentions which the hearing. Any hearing would take place interested governmental entities that petitioner seeks to have litigated in the after issuance of the amendment. If the request to participate under 10 CFR proceeding. Each contention must final determination is that the 2.315(c), must be filed in accordance consist of a specific statement of the amendment request involves a with the NRC’s E-Filing rule (72 FR issue of law or fact to be raised or significant hazards consideration, then 49139; August 28, 2007, as amended at controverted. In addition, the petitioner any hearing held would take place 77 FR 46562; August 3, 2012). The E- must provide a brief explanation of the before the issuance of the amendment Filing process requires participants to bases for the contention and a concise unless the Commission finds an submit and serve all adjudicatory statement of the alleged facts or expert imminent danger to the health or safety documents over the internet, or in some opinion which support the contention of the public, in which case it will issue cases to mail copies on electronic and on which the petitioner intends to an appropriate order or rule under 10 storage media. Detailed guidance on rely in proving the contention at the CFR part 2. making electronic submissions may be hearing. The petitioner must also A State, local governmental body, found in the Guidance for Electronic provide references to the specific Federally-recognized Indian Tribe, or Submissions to the NRC and on the NRC sources and documents on which the agency thereof, may submit a petition to website at https://www.nrc.gov/site- petitioner intends to rely to support its the Commission to participate as a party help/e-submittals.html. Participants position on the issue. The petition must under 10 CFR 2.309(h)(1). The petition may not submit paper copies of their include sufficient information to show should state the nature and extent of the filings unless they seek an exemption in that a genuine dispute exists with the petitioner’s interest in the proceeding. accordance with the procedures applicant or licensee on a material issue The petition should be submitted to the described below. of law or fact. Contentions must be Commission no later than 60 days from To comply with the procedural limited to matters within the scope of the date of publication of this notice. requirements of E-Filing, at least 10 the proceeding. The contention must be The petition must be filed in accordance days prior to the filing deadline, the one which, if proven, would entitle the with the filing instructions in the participant should contact the Office of petitioner to relief. A petitioner who ‘‘Electronic Submissions (E-Filing)’’ the Secretary by email at fails to satisfy the requirements at 10 section of this document, and should [email protected], or by telephone CFR 2.309(f) with respect to at least one meet the requirements for petitions set at 301–415–1677, to (1) request a digital contention will not be permitted to forth in this section, except that under identification (ID) certificate, which participate as a party. 10 CFR 2.309(h)(2) a State, local allows the participant (or its counsel or Those permitted to intervene become governmental body, or Federally- representative) to digitally sign parties to the proceeding, subject to any recognized Indian Tribe, or agency submissions and access the E-Filing limitations in the order granting leave to thereof does not need to address the system for any proceeding in which it intervene. Parties have the opportunity standing requirements in 10 CFR is participating; and (2) advise the to participate fully in the conduct of the 2.309(d) if the facility is located within Secretary that the participant will be hearing with respect to resolution of its boundaries. Alternatively, a State, submitting a petition or other that party’s admitted contentions, local governmental body, Federally- adjudicatory document (even in including the opportunity to present recognized Indian Tribe, or agency instances in which the participant, or its

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counsel or representative, already holds documents in paper format. Such filings ADAMS under Accession No. an NRC-issued digital ID certificate). must be submitted by: (1) First class ML20115E374. Based upon this information, the mail addressed to the Office of the Description of amendment request: Secretary will establish an electronic Secretary of the Commission, U.S. This amendment request contains docket for the hearing in this proceeding Nuclear Regulatory Commission, SUNSI. The amendments would use the if the Secretary has not already Washington, DC 20555–0001, Attention: leak-before-break methodology to established an electronic docket. Rulemaking and Adjudications Staff; or eliminate the dynamic effects of Information about applying for a (2) courier, express mail, or expedited postulated pipe ruptures in specific digital ID certificate is available on the delivery service to the Office of the portions of systems attached to the NRC’s public website at https:// Secretary, 11555 Rockville Pike, reactor coolant system. www.nrc.gov/site-help/e-submittals/ Rockville, Maryland 20852, Attention: Basis for proposed no significant getting-started.html. Once a participant Rulemaking and Adjudications Staff. hazards consideration determination: has obtained a digital ID certificate and Participants filing adjudicatory As required by 10 CFR 50.91(a), the a docket has been created, the documents in this manner are licensee has provided its analysis of the participant can then submit responsible for serving the document on issue of no significant hazards adjudicatory documents. Submissions all other participants. Filing is consideration, which is presented must be in Portable Document Format considered complete by first-class mail below: (PDF). Additional guidance on PDF as of the time of deposit in the mail, or 1. Does the proposed change involve a submissions is available on the NRC’s by courier, express mail, or expedited significant increase in the probability or public website at https://www.nrc.gov/ delivery service upon depositing the consequences of an accident previously site-help/electronic-sub-ref-mat.html. A document with the provider of the evaluated? filing is considered complete at the time service. A presiding officer, having Response: No. the document is submitted through the granted an exemption request from The proposed change requests plant- NRC’s E-Filing system. To be timely, an specific approval of a previously approved using E-Filing, may require a participant Leak-Before-Break (LBB) evaluation electronic filing must be submitted to or party to use E-Filing if the presiding the E-Filing system no later than 11:59 methodology, in accordance with 10 CFR 50, officer subsequently determines that the Appendix A, General Design Criterion (GDC) p.m. Eastern Time on the due date. reason for granting the exemption from 4. The LBB evaluations demonstrate that the Upon receipt of a transmission, the E- use of E-Filing no longer exists. probability of a rupture of the piping in the Filing system time-stamps the document Documents submitted in adjudicatory scope of the request is extremely low under and sends the submitter an email notice proceedings will appear in the NRC’s design basis conditions, such that the confirming receipt of the document. The dynamic effects of postulated pipe ruptures electronic hearing docket which is E-Filing system also distributes an email may be removed from the design basis of available to the public at https:// notice that provides access to the Salem Generating Station (Salem) Units 1 adams.nrc.gov/ehd, unless excluded document to the NRC’s Office of the and 2. General Counsel and any others who pursuant to an order of the Commission The proposed change does not adversely affect accident initiators or precursors. have advised the Office of the Secretary or the presiding officer. If you do not have an NRC-issued digital ID certificate Overall protection system performance will that they wish to participate in the remain within the bounds of the previously proceeding, so that the filer need not as described above, click ‘‘cancel’’ when the link requests certificates and you performed accident analyses. The design of serve the document on those the protection systems will be unaffected. participants separately. Therefore, will be automatically directed to the The Reactor Protection System (RPS) and applicants and other participants (or NRC’s electronic hearing dockets where Emergency Core Cooling System (ECCS) will their counsel or representative) must you will be able to access any publicly continue to function in a manner consistent apply for and receive a digital ID available documents in a particular with the plant design basis. All design, certificate before adjudicatory hearing docket. Participants are material, and construction standards that requested not to include personal were applicable prior to the request will documents are filed so that they can remain applicable. There will be no change obtain access to the documents via the privacy information, such as social security numbers, home addresses, or to normal plant operating parameters or E-Filing system. accident mitigation performance. The A person filing electronically using personal phone numbers in their filings, proposed amendment will not alter any the NRC’s adjudicatory E-Filing system unless an NRC regulation or other law assumptions or change any mitigation actions may seek assistance by contacting the requires submission of such in the radiological consequence evaluations NRC’s Electronic Filing Help Desk information. For example, in some in the Salem Updated Final Safety Analysis through the ‘‘Contact Us’’ link located instances, individuals provide home Report (UFSAR). on the NRC’s public website at https:// addresses in order to demonstrate Therefore, these proposed changes do not www.nrc.gov/site-help/e- proximity to a facility or site. With involve a significant increase in the probability or consequences of an accident submittals.html, by email to respect to copyrighted works, except for limited excerpts that serve the purpose previously evaluated. [email protected], or by a toll- 2. Does the proposed change create the free call at 1–866–672–7640. The NRC of the adjudicatory filings and would possibility of a new or different kind of Electronic Filing Help Desk is available constitute a Fair Use application, accident from any accident previously between 9 a.m. and 6 p.m., Eastern participants are requested not to include evaluated? Time, Monday through Friday, copyrighted materials in their Response: No. excluding government holidays. submission. The proposed change requests NRC Participants who believe that they approval of LBB methodology to demonstrate PSEG Nuclear LLC, and Exelon an extremely low probability of pipe rupture. have a good cause for not submitting Generation Company, LLC, Docket Nos. documents electronically must file an It does not introduce any new accident 50–272 and 50–311, Salem Nuclear scenarios, failure mechanisms, or single exemption request, in accordance with Generating Station, Unit Nos. 1 and 2, failures. All systems, structures, and 10 CFR 2.302(g), with their initial paper Salem County, New Jersey components previously required for the filing stating why there is good cause for mitigation of an event remain capable of not filing electronically and requesting Date of amendment request: April 24, fulfilling their intended design function. The authorization to continue to submit 2020. A publicly-available version is in proposed change has no adverse effects on

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any safety related systems or components submitted later than 10 days after notification will contain instructions on and does not challenge the performance or publication of this notice will not be how the requestor may obtain copies of integrity of any safety related system. considered absent a showing of good the requested documents, and any other Further, there are no changes in the method cause for the late filing, addressing why conditions that may apply to access to by which any safety-related plant system the request could not have been filed those documents. These conditions may performs its safety function. This amendment will not affect the normal method of power earlier. include, but are not limited to, the operation or change any operating C. The requestor shall submit a letter signing of a Non-Disclosure Agreement parameters. requesting permission to access SUNSI or Affidavit, or Protective Order 2setting Therefore, the proposed change does not to the Office of the Secretary, U.S. forth terms and conditions to prevent create the possibility of a new or different Nuclear Regulatory Commission, the unauthorized or inadvertent kind of accident from any accident Washington, DC 20555–0001, Attention: disclosure of SUNSI by each individual previously evaluated. Rulemakings and Adjudications Staff, who will be granted access to SUNSI. 3. Do the proposed changes involve a and provide a copy to the Deputy F. Filing of Contentions. Any significant reduction in a margin of safety? General Counsel for Hearings and contentions in these proceedings that Response: No. Administration, Office of the General are based upon the information received The proposed change does not adversely affect the ability of the fuel cladding, reactor Counsel, U.S. Nuclear Regulatory as a result of the request made for coolant pressure boundary, or containment to Commission, Washington, DC 20555– SUNSI must be filed by the requestor no perform their design basis functions as 0001. The expedited delivery or courier later than 25 days after receipt of (or fission product barriers. The proposed mail address for both offices is: U.S. access to) that information. However, if change uses previously accepted analytical Nuclear Regulatory Commission, 11555 more than 25 days remain between the methods to demonstrate that the probability Rockville Pike, Rockville, Maryland petitioner’s receipt of (or access to) the of a fluid system rupture is extremely low. 20852. The email address for the Office information and the deadline for filing It has no effect on the manner in which safety of the Secretary and the Office of the all other contentions (as established in limits or limiting safety system settings are General Counsel are Hearing.Docket@ the notice of hearing or opportunity for determined and it does not adversely affect hearing), the petitioner may file its any plant systems necessary to assure the nrc.gov and accomplishment of protection functions. [email protected], SUNSI contentions by that later Therefore, the proposed change does not respectively.1 The request must include deadline. involve a significant reduction in a margin of the following information: G. Review of Denials of Access. safety. (1) A description of the licensing (1) If the request for access to SUNSI action with a citation to this Federal is denied by the NRC staff after a The NRC staff has reviewed the determination on standing and requisite licensee’s analysis and, based on this Register notice; (2) The name and address of the need, the NRC staff shall immediately review, it appears that the three potential party and a description of the notify the requestor in writing, briefly standards of 10 CFR 50.92(c) are potential party’s particularized interest stating the reason or reasons for the satisfied. Therefore, the NRC staff that could be harmed by the action denial. proposes to determine that the identified in C.(1); and (2) The requestor may challenge the amendment request involves no (3) The identity of the individual or NRC staff’s adverse determination by significant hazards consideration. entity requesting access to SUNSI and filing a challenge within 5 days of Attorney for licensee: Steven the requestor’s basis for the need for the receipt of that determination with: (a) Fleischer, PSEG Services Corporation, information in order to meaningfully The presiding officer designated in this 80 Park Plaza, T–5, Newark, NJ 07101. proceeding; (b) if no presiding officer NRC Branch Chief: James G. Danna. participate in this adjudicatory proceeding. In particular, the request has been appointed, the Chief Order Imposing Procedures for Access must explain why publicly available Administrative Judge, or if he or she is to Sensitive Unclassified Non- versions of the information requested unavailable, another administrative Safeguards Information for Contention would not be sufficient to provide the judge, or an Administrative Law Judge Preparation basis and specificity for a proffered with jurisdiction pursuant to 10 CFR 2.318(a); or (c) if another officer has PSEG Nuclear LLC, and Exelon contention. D. Based on an evaluation of the been designated to rule on information Generation Company, LLC, Docket Nos. information submitted under paragraph access issues, with that officer. 50–272 and 50–311, Salem Nuclear C.(3) the NRC staff will determine (3) Further appeals of decisions under Generating Station, Unit Nos. 1 and 2, within 10 days of receipt of the request this paragraph must be made pursuant Salem County, New Jersey whether: to 10 CFR 2.311. A. This Order contains instructions (1) There is a reasonable basis to H. Review of Grants of Access. A regarding how potential parties to this believe the petitioner is likely to party other than the requestor may proceeding may request access to establish standing to participate in this challenge an NRC staff determination documents containing Sensitive NRC proceeding; and granting access to SUNSI whose release Unclassified Non-Safeguards (2) The requestor has established a would harm that party’s interest Information (SUNSI). legitimate need for access to SUNSI. independent of the proceeding. Such a B. Within 10 days after publication of E. If the NRC staff determines that the challenge must be filed within 5 days of this notice of hearing and opportunity to requestor satisfies both D.(1) and D.(2) the notification by the NRC staff of its petition for leave to intervene, any above, the NRC staff will notify the grant of access and must be filed with: potential party who believes access to requestor in writing that access to (a) The presiding officer designated in SUNSI is necessary to respond to this SUNSI has been granted. The written this proceeding; (b) if no presiding notice may request access to SUNSI. A ‘‘potential party’’ is any person who 1 While a request for hearing or petition to 2 Any motion for Protective Order or draft Non- intends to participate as a party by intervene in this proceeding must comply with the Disclosure Affidavit or Agreement for SUNSI must filing requirements of the NRC’s ‘‘E-Filing Rule,’’ be filed with the presiding officer or the Chief demonstrating standing and filing an the initial request to access SUNSI under these Administrative Judge if the presiding officer has not admissible contention under 10 CFR procedures should be submitted as described in this yet been designated, within 30 days of the deadline 2.309. Requests for access to SUNSI paragraph. for the receipt of the written access request.

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officer has been appointed, the Chief availability of interlocutory review by standing and who have propounded Administrative Judge, or if he or she is the Commission of orders ruling on contentions meeting the specificity and unavailable, another administrative such NRC staff determinations (whether basis requirements in 10 CFR part 2. judge, or an Administrative Law Judge granting or denying access) is governed The attachment to this Order with jurisdiction pursuant to 10 CFR by 10 CFR 2.311.3 summarizes the general target schedule 2.318(a); or (c) if another officer has I. The Commission expects that the for processing and resolving requests been designated to rule on information NRC staff and presiding officers (and under these procedures. access issues, with that officer. any other reviewing officers) will It is so ordered. If challenges to the NRC staff consider and resolve requests for access determinations are filed, these to SUNSI, and motions for protective Dated: June 6, 2020. procedures give way to the normal orders, in a timely fashion in order to For the Nuclear Regulatory Commission. process for litigating disputes minimize any unnecessary delays in Annette L. Vietti-Cook, concerning access to information. The identifying those petitioners who have Secretary of the Commission.

ATTACHMENT 1—GENERAL TARGET SCHEDULE FOR PROCESSING AND RESOLVING REQUESTS FOR ACCESS TO SENSITIVE UNCLASSIFIED NON-SAFEGUARDS INFORMATION IN THIS PROCEEDING

Day Event/activity

0 ...... Publication of Federal Register notice of hearing and opportunity to petition for leave to intervene, including order with in- structions for access requests. 10 ...... Deadline for submitting requests for access to Sensitive Unclassified Non-Safeguards Information (SUNSI) with information: Supporting the standing of a potential party identified by name and address; describing the need for the information in order for the potential party to participate meaningfully in an adjudicatory proceeding. 60 ...... Deadline for submitting petition for intervention containing: (i) Demonstration of standing; and (ii) all contentions whose formu- lation does not require access to SUNSI (+25 Answers to petition for intervention; +7 petitioner/requestor reply). 20 ...... U.S. Nuclear Regulatory Commission (NRC) staff informs the requestor of the staff’s determination whether the request for access provides a reasonable basis to believe standing can be established and shows need for SUNSI. (NRC staff also in- forms any party to the proceeding whose interest independent of the proceeding would be harmed by the release of the in- formation.) If NRC staff makes the finding of need for SUNSI and likelihood of standing, NRC staff begins document proc- essing (preparation of redactions or review of redacted documents). 25 ...... If NRC staff finds no ‘‘need’’ or no likelihood of standing, the deadline for petitioner/requestor to file a motion seeking a ruling to reverse the NRC staff’s denial of access; NRC staff files copy of access determination with the presiding officer (or Chief Administrative Judge or other designated officer, as appropriate). If NRC staff finds ‘‘need’’ for SUNSI, the deadline for any party to the proceeding whose interest independent of the proceeding would be harmed by the release of the information to file a motion seeking a ruling to reverse the NRC staff’s grant of access. 30 ...... Deadline for NRC staff reply to motions to reverse NRC staff determination(s). 40 ...... (Receipt +30) If NRC staff finds standing and need for SUNSI, deadline for NRC staff to complete information processing and file motion for Protective Order and draft Non-Disclosure Affidavit. Deadline for applicant/licensee to file Non-Disclosure Agreement for SUNSI. A ...... If access granted: Issuance of presiding officer or other designated officer decision on motion for protective order for access to sensitive information (including schedule for providing access and submission of contentions) or decision reversing a final adverse determination by the NRC staff. A + 3 ...... Deadline for filing executed Non-Disclosure Affidavits. Access provided to SUNSI consistent with decision issuing the protec- tive order. A + 28 ...... Deadline for submission of contentions whose development depends upon access to SUNSI. However, if more than 25 days remain between the petitioner’s receipt of (or access to) the information and the deadline for filing all other contentions (as established in the notice of opportunity to request a hearing and petition for leave to intervene), the petitioner may file its SUNSI contentions by that later deadline. A + 53 ...... (Contention receipt +25) Answers to contentions whose development depends upon access to SUNSI. A + 60 ...... (Answer receipt +7) Petitioner/Intervenor reply to answers. >A + 60 ...... Decision on contention admission.

[FR Doc. 2020–12624 Filed 7–6–20; 8:45 am] PLACE: Commissioners’ Conference Week of July 20, 2020—Tentative BILLING CODE 7590–01–P Room, 11555 Rockville Pike, Rockville, Maryland. There are no meetings scheduled for the week of July 20, 2020. STATUS: Public. NUCLEAR REGULATORY Week of July 27, 2020—Tentative COMMISSION Week of July 6, 2020 There are no meetings scheduled for There are no meetings scheduled for [NRC–2020–0001] the week of July 27, 2020. the week of July 6, 2020. Week of August 3, 2020—Tentative Sunshine Act Meetings Week of July 13, 2020—Tentative There are no meetings scheduled for TIME AND DATE: Weeks of July 6, 13, 20, There are no meetings scheduled for the week of August 3, 2020. 27, August 3, 10, 2020. the week of July 13, 2020.

3 Requestors should note that the filing 46562; August 3, 2012) apply to appeals of NRC applicable), but not to the initial SUNSI request requirements of the NRC’s E-Filing Rule (72 FR staff determinations (because they must be served submitted to the NRC staff under these procedures. 49139; August 28, 2007, as amended at 77 FR on a presiding officer or the Commission, as

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Week of August 10, 2020—Tentative Nuclear Materials (SNM) License No. North Billerica, and at 700 Summer St., There are no meetings scheduled for SNM–2016. The NRC has terminated the Conley Terminal in the Port of Boston. the week of August 10, 2020. license held by Passport Systems, Inc. Passport was contracted by the DHS to (Passport), to possess and use SNM for develop new technologies to detect CONTACT PERSON FOR MORE INFORMATION: developing new technologies to detect special nuclear materials in cargo For more information or to verify the special nuclear materials in cargo containers. The program included status of meetings, contact Denise containers for the U.S. Department of utilizing SNM placed inside fully McGovern at 301–415–0681 or via email Homeland Security (DHS), Domestic loaded cargo containers and other at [email protected]. The Nuclear Detection Office. The license concealments during testing of schedule for Commission meetings is was terminated at Passport’s request proprietary equipment to determine if it subject to change on short notice. since it no longer needed the sources for can locate SNM sources placed inside The NRC Commission Meeting development of their cargo inspection containers when surrounded by the Schedule can be found on the internet system. cargo. The materials used consisted of at: https://www.nrc.gov/public-involve/ Low Enriched Uranium and High public-meetings/schedule.html. DATES: The license termination for The NRC provides reasonable SNM–2016 was issued on May 4, 2020. Enriched Uranium constructed for DHS. The SNM consisted of SNM produced accommodation to individuals with ADDRESSES: Please refer to Docket ID by Pacific Northwest National disabilities where appropriate. If you NRC–2020–0116 when contacting the Laboratory, a highly enriched uranium need a reasonable accommodation to NRC about the availability of metal source, low enriched uranium participate in these public meetings or information regarding this document. metal sources, and uranium oxides (U02 need this meeting notice or the You may obtain publicly-available and U308). The sources used under this transcript or other information from the information related to this document license were constructed by and owned public meetings in another format (e.g., using any of the following methods: by the Department of Energy, who braille, large print), please notify Anne • Federal Rulemaking Website: Go to retains ownership. Silk, NRC Disability Program Specialist, https://www.regulations.gov and search at 301–287–0745, by videophone at for Docket ID NRC–2020–0116. Address The initial application for this license 240–428–3217, or by email at questions about NRC docket IDs in was received on November 5, 2010. The [email protected]. Determinations on Regulations.gov to Jennifer Borges; NRC issued Passport’s SNM license on requests for reasonable accommodation telephone: 301–287–9127; email: December 12, 2011. Prior to submitting will be made on a case-by-case basis. [email protected]. For technical its request for license termination on Members of the public may request to questions, contact the individual listed October 16, 2019, during NRC staff receive this information electronically. in the FOR FURTHER INFORMATION inspections of Passport’s main office in If you would like to be added to the CONTACT section of this document. North Billerica, MA, and its field office distribution, please contact the Nuclear • NRC’s Agencywide Documents in the Port of Boston on August 29–30, Regulatory Commission, Office of the Access and Management System 2018, and March 19, 2019, respectively, Secretary, Washington, DC 20555 (301– (ADAMS): You may obtain publicly- Passport stated that it had discussed its 415–1969), or by email at available documents online in the intention to terminate their SNM–2016 [email protected] or Tyesha.Bush@ ADAMS Public Documents collection at license since it no longer needed the nrc.gov. https://www.nrc.gov/reading-rm/ sources for development of their cargo The NRC is holding the meetings adams.html. To begin the search, select inspection system. Passport’s use of the under the authority of the Government ‘‘Begin Web-based ADAMS Search.’’ For licensed materials was for testing newly in the Sunshine Act, 5 U.S.C. 552b. problems with ADAMS, please contact developed detection equipment. Dated: July 2, 2020. the NRC’s Public Document Room (PDR) Therefore, consistent section For the Nuclear Regulatory Commission. reference staff at 1–800–397–4209, 301– 51.22(c)(14)(v) of title 10 of the Code of Federal Regulations (10 CFR), the initial Denise L. McGovern 415–4737, or by email to pdr.resource@ nrc.gov. For the convenience of the licensing action was categorically Policy Coordinator, Office of the Secretary. reader, the ADAMS accession numbers excluded from the need to prepare an [FR Doc. 2020–14659 Filed 7–2–20; 11:15 am] are provided in a table in the Environmental Assessment or an BILLING CODE 7590–01–P ‘‘Availability of Documents’’ section of Environmental Impact Statement. The this document. NRC staff prepared a safety evaluation FOR FURTHER INFORMATION CONTACT: report for the termination of SNM–2018. NUCLEAR REGULATORY This license termination complies with COMMISSION Osiris Siurano-Perez, Office of Nuclear Material Safety and Safeguards, U.S. 10 CFR 70.38, the standards and [Docket No. 70–7022; NRC–2020–0116] Nuclear Regulatory Commission, requirements of the Atomic Energy Act Washington, DC 20555–0001; telephone: of 1954, as amended, and the NRC’s Passport Systems, Inc.; North Billerica, 301–415–7827, email: Osiris.Siurano- rules and regulations as set forth in 10 MA [email protected]. CFR Chapter I. Accordingly, this license termination was issued on May 4, 2020. AGENCY: Nuclear Regulatory SUPPLEMENTARY INFORMATION: Commission. I. Discussion II. Availability of Documents ACTION: License termination; issuance. The NRC has terminated License No. The documents identified in the SUMMARY: The U.S. Nuclear Regulatory SNM–2016, held by Passport Systems, following table are available to Commission (NRC) is providing public Inc., for possession and use of SNM at interested persons through ADAMS, as notice of the termination of Special its facilities at 76 Treble Cove Road, in indicated.

Document ADAMS Accession No.

Passport Systems, Inc. License Application ...... ML110110650. Letter to Paul H. Johnson, Passport Systems, Inc., Issuance of Special Nuclear Material License SNM–2016 ...... ML112760702 (package).

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Document ADAMS Accession No.

Enclosure 2: Passport Systems Materials License SNM–2016 Docket No. 70–7022 (Public Version) ...... ML113430777. License Amendment Request to Terminate Special Nuclear Materials License No. SNM–2016 ...... ML19290E196 (package). Approval of Amendment to Terminate Special Nuclear Material License Number 2016 ...... ML20009E807. Safety Evaluation Report: Termination of Special Nuclear Materials License ...... ML20009E809. Amendment 4 of SNM–2016 ...... ML20009E810.

Dated: June 30, 2020. for Docket ID NRC–2019–0086. Address 415–4737, or by email to pdr.resource@ For the Nuclear Regulatory Commission. questions about NRC docket IDs in nrc.gov. Revision 2 to RG 1.187, Kevin M. Ramsey, regulations.gov to Jennifer Borges; ‘‘Guidance for Implementation of 10 Acting Chief, Fuel Facility Licensing Branch, telephone: 301–287–9127; email: CFR 50.59, ‘Changes, Tests, and Division of Fuel Management, Office of [email protected]. For technical Experiments’ ’’ is available in ADAMS Nuclear Material Safety and Safeguards. questions, contact the individuals listed under Accession No. ML20125A730. [FR Doc. 2020–14481 Filed 7–6–20; 8:45 am] in the FOR FURTHER INFORMATION The regulatory analysis and staff BILLING CODE 7590–01–P CONTACT section of this document. responses to the public comments on • Mail comments to: Office of DG–1356 may be found in ADAMS Administration, Mail Stop: TWFN– Accession Nos. ML19045A432 and NUCLEAR REGULATORY 7A06, U.S. Nuclear Regulatory ML20125A729, respectively. COMMISSION Commission, Washington, DC 20555– B. Submitting Comments [NRC–2019–0086] 0001. ATTN: Program Management, Announcements and Editing Staff. Please include Docket ID NRC–2019– Guidance for Implementation of For additional direction on obtaining 0086 in your comment submission. Changes, Tests, and Experiments information and submitting comments, The NRC cautions you not to include see ‘‘Obtaining Information and identifying or contact information that AGENCY: Nuclear Regulatory Submitting Comments’’ in the you do not want to be publicly Commission. SUPPLEMENTARY INFORMATION section of disclosed in your comment submission. ACTION: Regulatory guide; issuance and this document. The NRC will post all comment post-promulgation comment period. Regulatory guides are not submissions at https:// copyrighted, and NRC approval is not www.regulations.gov as well as enter the SUMMARY: The U.S. Nuclear Regulatory required to reproduce them. comment submissions into ADAMS. Commission (NRC) is issuing Revision 2 FOR FURTHER INFORMATION CONTACT: The NRC does not routinely edit to Regulatory Guide (RG) 1.187. This RG Philip McKenna, Office of Nuclear comment submissions to remove provides licensees with a method that Reactor Regulation, telephone: 301– identifying or contact information. the NRC considers acceptable for use in If you are requesting or aggregating complying with the Commission’s 415–0037, email: Philip.McKenna@ nrc.gov and Robert Roche-Rivera, Office comments from other persons for regulations on the process by which submission to the NRC, then you should licensees, under certain conditions, may of Nuclear Regulatory Research, telephone: 301–415–8113, email: inform those persons not to include make changes to their facilities and identifying or contact information that procedures as described in the final [email protected]. Both are staff of the U.S. Nuclear Regulatory they do not want to be publicly safety analysis report (FSAR) (as disclosed in their comment submission. updated) (also referred to as the updated Commission, Washington, DC 20555– 0001. Your request should state that the NRC final safety analysis report (UFSAR)), does not routinely edit comment SUPPLEMENTARY INFORMATION: and conduct tests or experiments not submissions to remove such information described in the FSAR (as updated), I. Obtaining Information and before making the comment without obtaining a license amendment Submitting Comments submissions available to the public or pursuant to NRC requirements. This RG entering the comment into ADAMS. is effective immediately with a 30-day A. Obtaining Information post-promulgation comment period. Please refer to Docket ID NRC–2019– II. Discussion DATES: Revision 2 to RG 1.187 takes 0086 when contacting the NRC about The NRC is issuing a revision to an effect on July 7, 2020. Post- the availability of information for this existing guide in the NRC’s ‘‘Regulatory promulgation comments must be action. You may obtain publicly- Guide’’ series. This series was received by August 6, 2020. Comments available information related to this developed to describe methods that are received after this date will be action by any of the following methods: acceptable to the NRC staff for considered if it is practical to do so, but • Federal Rulemaking Website: Go to implementing specific parts of the the NRC is able to ensure consideration https://www.regulations.gov and search agency’s regulations, to explain only for comments received on or before for Docket ID NRC–2019–0086. techniques that the staff uses in this date. Although a time limit is given, • NRC’s Agencywide Documents evaluating specific issues or postulated comments and suggestions in Access and Management System events, and to describe information that connection with items for inclusion in (ADAMS): You may obtain publicly- the staff needs in its review of guides currently being developed or available documents online in the applications for permits and licenses. improvements in all published guides ADAMS Public Documents collection at RG 1.187, Revision 1, entitled, are encouraged at any time. https://www.nrc.gov/reading-rm/ ‘‘Guidance for Implementation of 10 ADDRESSES: You may submit comments adams.html. To begin the search, select CFR 50.59, ‘Changes, Tests, and on RG 1.187, Revision 2, by any of the ‘‘Begin Web-based ADAMS Search.’’ For Experiments’ ’’ (ADAMS Accession No. following methods: problems with ADAMS, please contact ML17195A655), endorsed, with • Federal Rulemaking Website: Go to the NRC’s Public Document Room (PDR) clarifications, the guidance in Nuclear https://www.regulations.gov and search reference staff at 1–800–397–4209, 301– Energy Institute (NEI) 96–07,

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‘‘Guidelines for 10 CFR 50.59 IV. Congressional Review Act For the Nuclear Regulatory Commission. Evaluations,’’ Revision 1 (November Meraj Rahimi, 2000). NEI 96–07, Revision 1, provides This RG is a rule as defined in the Chief, Regulatory Guidance and Generic licensees with a method that the staff Congressional Review Act (5 U.S.C. Issues Branch, Division of Engineering, Office considers acceptable for use in 801–808). However, the Office of of Nuclear Regulatory Research. complying with the Commission’s Management and Budget has not found [FR Doc. 2020–14564 Filed 7–6–20; 8:45 am] regulations on the process by which it to be a major rule as defined in the BILLING CODE 7590–01–P licensees, under certain conditions, may Congressional Review Act. make changes to their facilities and V. Submitting Suggestions for procedures as described in the FSAR (as Improvement of Regulatory Guides POSTAL REGULATORY COMMISSION updated) and conduct tests or [Docket No. CP2020–211; Order No. 5575] experiments not described in the FSAR A member of the public may, at any (as updated) without obtaining a license time, submit suggestions to the NRC for Inbound Competitive Multi-Service amendment pursuant to 10 CFR 50.90. improvement of existing RGs or for the Agreements With Foreign Postal RG 1.187, Revision 2, provides development of new RGs to address new Operators guidance on complying with the issues. Suggestions can be submitted on requirements of 10 CFR 50.59 when the NRC’s public website at https:// AGENCY: Postal Regulatory Commission. performing a digital instrumentation www.nrc.gov/reading-rm/doc- ACTION: Notice. and control (I&C) modification. collections/reg-guides/contactus.html. Specifically, it endorses, with SUMMARY: The Commission is clarifications, NEI 96–07, Appendix D, VI. Backfitting, Forward Fitting, and acknowledging a recent filing by the Revision 1, ‘‘Supplemental Guidance for Issue Finality Postal Service that it has entered into Application of 10 CFR 50.59 to Digital the Inbound Competitive Multi-Service Modifications’’ (ADAMS Accession No. Revision 2 of RG 1.187 endorses, with Agreement with Foreign Postal ML20135H168). The NRC staff clarifications, NEI 96–07, Appendix D, Operators (FPOs). This notice informs published Draft Guide (DG)–1356 for Revision 1, which provides guidance on the public of the filing, invites public public comment on May 30, 2019 (84 FR the application of the requirements of comment, and takes other 25077), which proposed to endorse NEI 10 CFR 50.59 to proposed digital administrative steps. 96–07, Appendix D, in RG 1.187, modifications to nuclear power plant DATES: Comments are due: July 9, 2020. Revision 2, with certain exceptions and I&C systems. As explained in RG 1.187, ADDRESSES: Submit comments additions. Revision 2, licensees are not required to electronically via the Commission’s The staff revised the RG in response comply with the positions set forth in Filing Online system at http:// to NEI’s revisions to NEI 96–07, this regulatory guide. Therefore, RG www.prc.gov. Those who cannot submit Appendix D; public comments on DG– 1.187, Revision 2, does not constitute comments electronically should contact 1356; and two public meetings (ADAMS backfitting as defined in 10 CFR 50.109, the person identified in the FOR FURTHER Accession Nos. ML19297G592 and ‘‘Backfitting,’’ and as described in NRC INFORMATION CONTACT section by ML20135H231). Based on the revised Management Directive (MD) 8.4, telephone for advice on filing Appendix D, the staff removed the ‘‘Management of Backfitting, Forward alternatives. exception in the proposed Revision 2 of Fitting, Issue Finality, and Information RG 1.187. The staff recognizes that the Requests’’; constitute forward fitting as FOR FURTHER INFORMATION CONTACT: changes to RG 1.187, Revision 2, may be that term is defined and described in David A. Trissell, General Counsel, at significant changes, beyond what a MD 8.4; or affect issue finality of any 202–789–6820. member of the public might have approval issued under 10 CFR part 52, SUPPLEMENTARY INFORMATION: anticipated from these documents and ‘‘Licenses, Certificates, and Approvals Table of Contents public interactions. Therefore, the staff for Nuclear Power Plants.’’ If, in the is providing an opportunity to submit future, the NRC were to impose a I. Introduction additional, post-promulgation position in this RG 1.187, Revision 2, in II. Commission Action III. Ordering Paragraphs comments in accordance with Sections a manner that would constitute I and VII of this document. backfitting or forward fitting or affect I. Introduction Consequently, the NRC will evaluate the issue finality for a part 52 approval, On June 30, 2020, the Postal Service any significant comments received on then the NRC would address the (USPS) filed a notice with the this RG and will consider revising the backfitting provision in 10 CFR 50.109, Commission pursuant to 39 CFR RG as a result of the comments and the forward fitting provision of MD 8.4, 3035.105 and Order No. 546,1 giving evaluation. or the applicable issue finality provision notice that it has entered into an III. Additional Information in part 52, respectively. Inbound Competitive Multi-Service Proposed Revision 2 of RG 1.187 was VII. Request for Post-Promulgation Agreement with a Foreign Postal issued with a temporary identification Comment Operator (FPO). The Notice concerns of Draft Regulatory Guide (DG)–1356. the inbound portions of the competitive The NRC published a notice of the The NRC is requesting post- multi-product agreement entered into by availability of DG–1356 in the Federal promulgation comments on this RG. the Postal Service and a FPO, referred Register on May 30, 2019 (84 FR 25077) Comments on Revision 2 to RG 1.187 must be received by August 6, 2020. The 1 Notice of United States Postal Service of Filing for a 45-day public comment period. Functionally Equivalent Inbound Competitive The public comment period closed on NRC will publish a document in the Federal Register containing an Multi-Service Agreement with Foreign Postal July 15, 2019. Public comments on DG– Operator—FY20–3, June 30, 2020 (Notice). Docket 1356 and the staff responses to the evaluation of the significant comments Nos. MC2010–34 and CP2010–95, Order Adding public comments are available in and any revisions made to this RG as a Inbound Competitive Multi-Service Agreements result of the comments received. with Foreign Postal Service Operators 1 to the ADAMS under Accession No. Competitive Product List and Approving Included ML20125A729. Dated: July 1, 2020. Agreement, September 29, 2010 (Order No. 546).

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to as ‘‘FPO–USPS Agreement FY20–3.’’ II. Commission Action ADDRESSES: Submit comments Notice at 1. The Postal Service seeks to The Commission establishes Docket electronically via the Commission’s include the FPO–USPS Agreement No. CP2020–211 to consider the Notice. Filing Online system at http:// FY20–3 within the Inbound Competitive Interested persons may submit www.prc.gov. Those who cannot submit Multi-Service Agreement with Foreign comments on whether FPO–USPS comments electronically should contact Postal Operators 1 (MC2010–34) Agreement FY20–3 is consistent with 39 the person identified in the FOR FURTHER product. Id. U.S.C. 3633 and 39 CFR 3035.105 and INFORMATION CONTACT section by The Postal Service asserts that FPO– whether it is functionally equivalent to telephone for advice on filing USPS Agreement FY20–3 ‘‘is the inbound competitive portions of the alternatives. functionally equivalent to the baseline Docket No. CP2010–95 agreement, FOR FURTHER INFORMATION CONTACT: agreement filed in Docket No. MC2010– which was included in the Inbound David A. Trissell, General Counsel, at 34 because the terms of this agreement Competitive Multi-Service Agreements 202–789–6820. are similar in scope and purpose to the with Foreign Postal Operators 1 SUPPLEMENTARY INFORMATION: terms of the CP2010–95 Agreement.’’ Id. product. Comments are due by July 9, at 3. Concurrent with the Notice, the 2020. Table of Contents Postal Service filed supporting financial The Notice and related filings are I. Introduction documentation and the following available on the Commission’s website II. Docketed Proceeding(s) documents: • (http://www.prc.gov). The Commission I. Introduction Attachment 1—an application for encourages interested persons to review non-public treatment; The Commission gives notice that the • the Notice for further details. Attachment 2—the FPO–USPS The Commission appoints Postal Service filed request(s) for the Agreement FY20–3; Commission to consider matters related • Christopher C. Mohr to serve as Public Attachment 3—Governors’ Decision Representative in this proceeding. to negotiated service agreement(s). The No. 19–1; request(s) may propose the addition or • Attachment 4—a certified statement III. Ordering Paragraphs removal of a negotiated service required by 39 CFR 3035.105(c)(2). It is ordered: agreement from the market dominant or Id. at 5. 1. The Commission establishes Docket the competitive product list, or the The Postal Service states it intends for No. CP2020–211 for consideration of the modification of an existing product FPO–USPS Agreement FY20–3 to take matters raised by the Notice of United currently appearing on the market effect on July 1, 2020. Id. at 1, 2, 6. The States Postal Service of Filing dominant or the competitive product Postal Service ‘‘acknowledges that, Functionally Equivalent Inbound list. despite the best efforts of the Competitive Multi-Service Agreement Section II identifies the docket counterparties . . ., this Notice is not with Foreign Postal Operator—FY20–3, number(s) associated with each Postal being filed at least 15 days prior to the filed on June 30, 2020. Service request, the title of each Postal 2 rates’ intended effective date.’’ It 2. Pursuant to 39 U.S.C. 505, Service request, the request’s acceptance maintains that because ‘‘settlement Christopher C. Mohr is appointed to date, and the authority cited by the would not occur until well after th[e] serve as an officer of the Commission Postal Service for each request. For each intended effective date,’’ the (Public Representative) to represent the request, the Commission appoints an Commission could timely review FPO– interests of the general public in this officer of the Commission to represent USPS Agreement FY20–3 and allow proceeding. the interests of the general public in the parties to implement rates on July 1, 3. Comments by interested persons proceeding, pursuant to 39 U.S.C. 505 2020. Id. The Postal Service contends are due by July 9, 2020. (Public Representative). Section II also that a later implementation date ‘‘could 4. The Secretary shall arrange for establishes comment deadline(s) lead to complexities in accounting for publication of this Order in the Federal pertaining to each request. the time period between July 1 and the Register. The public portions of the Postal date that [FPO–USPS Agreement FY20– By the Commission. Service’s request(s) can be accessed via 3] would become effective.’’ Id. Erica A. Barker, the Commission’s website (http:// The Postal Service notes that FPO– www.prc.gov). Non-public portions of Secretary. USPS Agreement FY20–3 provides rates the Postal Service’s request(s), if any, for inbound tracked packets. Id. at 6. [FR Doc. 2020–14606 Filed 7–6–20; 8:45 am] can be accessed through compliance The Postal Service states that FPO– BILLING CODE 7710–FW–P with the requirements of 39 CFR USPS Agreement FY20–3 is in 3011.301.1 compliance with 39 U.S.C. 3633 and is The Commission invites comments on POSTAL REGULATORY COMMISSION functionally equivalent to the inbound whether the Postal Service’s request(s) competitive portions of the CP2010–95 [Docket Nos. MC2020–187 and CP2020–212] in the captioned docket(s) are consistent agreement, which was included in the with the policies of title 39. For Inbound Competitive Multi-Service New Postal Products request(s) that the Postal Service states Agreements with Foreign Postal AGENCY: Postal Regulatory Commission. concern market dominant product(s), Operators 1 product. Id. at 9. For these applicable statutory and regulatory ACTION: Notice. reasons, the Postal Service states that, requirements include 39 U.S.C. 3622, 39 ‘‘FPO–USPS Agreement FY20–3 should SUMMARY: The Commission is noticing a U.S.C. 3642, 39 CFR part 3030, and 39 be added to the Inbound Competitive recent Postal Service filing for the CFR part 3040, subpart B. For request(s) Multi-Service Agreements with Foreign Commission’s consideration concerning that the Postal Service states concern Postal Operators 1 [ ] product with effect negotiated service agreements. This competitive product(s), applicable from July 1, 2020.’’ Id. notice informs the public of the filing, invites public comment, and takes other 1 See Docket No. RM2018–3, Order Adopting 2 Id. at 2. The Postal Service’s Notice was filed 1 Final Rules Relating to Non-Public Information, day prior to the FPO–USPS Agreement FY20–3 administrative steps. June 27, 2018, Attachment A at 19–22 (Order No. intended effective date. See generally Notice. DATES: Comments are due: July 9, 2020. 4679).

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statutory and regulatory requirements change was published for comment in Amendment No. 5 to the proposed rule include 39 U.S.C. 3632, 39 U.S.C. 3633, the Federal Register on January 3, change, which replaced and superseded 39 U.S.C. 3642, 39 CFR part 3035, and 2020.4 the proposed rule change, as amended 39 CFR part 3040, subpart B. Comment On February 13, 2020, pursuant to by Amendment No. 4.12 The deadline(s) for each request appear in Section 19(b)(2) of the Act,5 the Commission has received no comments section II. Commission designated a longer period on the proposed rule change. The within which to approve the proposed Commission is publishing this notice to II. Docketed Proceeding(s) rule change, disapprove the proposed solicit comments on the proposed rule 1. Docket No(s).: MC2020–187 and rule change, or institute proceedings to change, as modified by Amendment No. CP2020–212; Filing Title: USPS Request determine whether to disapprove the 5, from interested persons and is to Add Priority Mail Contract 632 to proposed rule change.6 On March 31, approving the proposed rule change, as Competitive Product List and Notice of 2020, the Exchange filed Amendment modified by Amendment No. 5, on an Filing Materials Under Seal; Filing No. 2 to the proposed rule change, accelerated basis. Acceptance Date: June 30, 2020; Filing which replaced and superseded the Authority: 39 U.S.C. 3642, 39 CFR proposed rule change as originally II. Self-Regulatory Organization’s 3040.130 through 3040.135, and 39 CFR filed.7 On April 1, 2020, the Statement of the Purpose of, and 3035.105; Public Representative: Commission published Amendment No. Statutory Basis for, the Proposed Rule Christopher C. Mohr; Comments Due: 2 for notice and comment and instituted Change, as Modified by Amendment July 9, 2020. proceedings under Section 19(b)(2)(B) of No. 5 This Notice will be published in the the Act 8 to determine whether to In its filing with the Commission, the Federal Register. approve or disapprove the proposed self-regulatory organization included rule change.9 On May 20, 2020, the statements concerning the purpose of, Erica A. Barker, Exchange filed Amendment No. 3 to the and basis for, the proposed rule change Secretary. proposed rule change, which replaced and discussed any comments it received [FR Doc. 2020–14518 Filed 7–6–20; 8:45 am] and superseded the proposed rule on the proposed rule change. The text BILLING CODE 7710–FW–P change, as amended by Amendment No. of those statements may be examined at 2.10 On June 15, 2020, the Exchange the places specified in Item IV below. filed Amendment No. 4 to the proposed The Exchange has prepared summaries, SECURITIES AND EXCHANGE rule change, which replaced and set forth in sections A, B, and C below, COMMISSION superseded the proposed rule change, as of the most significant parts of such 11 [Release No. 34–89192; File No. SR– amended by Amendment No. 3. On statements. June 19, 2020, the Exchange filed NYSEArca–2019–96] A. Self-Regulatory Organization’s Statement of the Purpose of, and proposed NYSE Arca Rule 8.602–E and revised the Self-Regulatory Organizations; NYSE Statutory Basis for, the Proposed Rule Arca, Inc.; Notice of Filing of proposal to seek to list and trade Shares of the Funds under proposed NYSE Arca Rule 8.601–E Change Amendment No. 5 and Order Granting (Active Proxy Portfolio Shares). See Amendment Accelerated Approval of a Proposed No. 2, infra note 7. See also Amendment No. 6 to 1. Purpose Rule Change, as Modified by SR–NYSEArca–2019–95 (proposing to adopt NYSE The Exchange has proposed to add Amendment No. 5, To List and Trade Arca Rule 8.601–E to list and trade Active Proxy Portfolio Shares, available on the Commission’s new NYSE Arca Rule 8.601–E for the Two Series of Active Proxy Portfolio website at https://www.sec.gov/comments/sr- purpose of permitting the listing and Shares Issued by the American nysearca-2019-95/srnysearca201995-7329866- trading, or trading pursuant to unlisted Century ETF Trust Under NYSE Arca 218548.pdf. The Commission recently approved the trading privileges (‘‘UTP’’), of Active Rule 8.601–E Exchange’s proposed rule change to adopt NYSE Arca Rule 8.601–E to permit the listing and trading Proxy Portfolio Shares, which are June 30, 2020. of Active Proxy Portfolio Shares. See Securities securities issued by an actively managed Exchange Act Release No. 89185 (June 29, 2020) open-end investment management I. Introduction (SR–NYSEArca–2019–95) (‘‘Active Proxy Portfolio 13 Shares Order’’). company. Proposed Commentary .01 On December 23, 2019, NYSE Arca, 4 See Securities Exchange Act Release No. 87867 12 Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed (Dec. 30, 2019), 85 FR 394. Amendment No. 5 is available on the 5 15 U.S.C. 78s(b)(2). Commission’s website at https://www.sec.gov/ with the Securities and Exchange comments/sr-nysearca-2019-96/srnysearca201996- 6 See Securities Exchange Act Release No. 88198, 7329865-218547.pdf. Commission (‘‘Commission’’), pursuant 85 FR 9833 (Feb. 20, 2020). The Commission 13 to Section 19(b)(1) of the Securities designated April 2, 2020, as the date by which the See Amendment 6 to SR–NYSEArca–2019–95, Exchange Act of 1934 (‘‘Act’’) 1 and Rule Commission shall approve or disapprove, or filed on June 19, 2020. See also, Securities Exchange Act Release No. 87866 (December 30, 19b–4 thereunder,2 a proposed rule institute proceedings to determine whether to disapprove, the proposed rule change. 2019), 85 FR 357 (January 3, 2020) (SR–NYSEArca– change to list and trade shares 2019–95). Proposed Rule 8.601–E(c)(1) provides 7 Amendment No. 1 to the proposed rule change that ‘‘[t]he term ‘‘Active Proxy Portfolio Share’’ (‘‘Shares’’) of the following under NYSE was filed on March 30, 2020 and subsequently means a security that (a) is issued by a investment Arca Rule 8.601–E (Active Proxy withdrawn on March 31, 2020. Amendment No. 2 company registered under the Investment Company is available on the Commission’s website at https:// Portfolio Shares): American Century Act of 1940 (‘‘Investment Company’’) organized as www.sec.gov/comments/sr-nysearca-2019-96/ Mid Cap Growth Impact ETF and an open-end management investment company that srnysearca201996-7015541-214976.pdf. invests in a portfolio of securities selected by the American Century Sustainable Equity 8 15 U.S.C. 78s(b)(2)(B). 3 Investment Company’s investment adviser ETF (‘‘Funds’’). The proposed rule 9 See Securities Exchange Act Release No. 88534, consistent with the Investment Company’s 85 FR 19519 (April 7, 2020). investment objectives and policies; (b) is issued in 1 15 U.S.C.78s(b)(1). 10 Amendment No. 3 is available on the a specified minimum number of shares, or 2 17 CFR 240.19b–4. Commission’s website at https://www.sec.gov/ multiples thereof, in return for a deposit by the 3 The Exchange originally proposed to adopt comments/sr-nysearca-2019-96/srnysearca201996- purchaser of the Proxy Portfolio and/or cash with NYSE Arca Rule 8.602–E to permit the Exchange to 7220746-216947.pdf. a value equal to the next determined net asset value list and trade Actively Managed Solution Shares, 11 Amendment No. 4 is available on the (‘‘NAV’’); (c) when aggregated in the same specified and to list and trade Shares of the Funds under Commission’s website at https://www.sec.gov/ minimum number of Active Proxy Portfolio Shares, proposed Exchange Rule 8.602–E. In Amendment comments/sr-nysearca-2019-96/srnysearca201996- or multiples thereof, may be redeemed at a holder’s No. 2, the Exchange removed the proposal to adopt 7316464-218309.pdf. Continued

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to Rule 8.601–E would require the issue of Active Proxy Portfolio Shares utilize creation of a Proxy Portfolio for Exchange to file separate proposals will be publicly disclosed within at hedging and arbitrage purposes. under Section 19(b) of the Act before least 60 days following the end of every The Exchange, after consulting with listing and trading any series of Active fiscal quarter in accordance with normal various Lead Market Makers (‘‘LMMs’’) Proxy Portfolio Shares on the Exchange. disclosure requirements otherwise that trade exchange-traded funds Therefore, the Exchange is submitting applicable to open-end management (‘‘ETFs’’) on the Exchange,18 believes this proposal in order to list and trade investment companies registered under that market makers will be able to make shares (‘‘Shares’’) of Active Proxy the 1940 Act.16 The composition of the efficient and liquid markets priced near Portfolio Shares of the American portfolio of an issue of Active Proxy the ETF’s intraday value, and market Century Mid Cap Growth Impact ETF Portfolio Shares would not be available makers employ market making and American Century Sustainable at commencement of Exchange listing techniques such as ‘‘statistical Equity ETF (each a ‘‘Fund’’ and, and trading. Second, in connection with arbitrage,’’ including correlation collectively, the ‘‘Funds’’) under the creation and redemption of Active hedging, beta hedging, and dispersion proposed Rule 8.601–E. Proxy Portfolio Shares, such creation or trading, which is currently used redemption may be exchanged for a throughout the financial services Key Features of Active Proxy Portfolio industry, to make efficient markets in Shares Proxy Portfolio with a value equal to the next-determined NAV. exchange-traded products.19 For Active While funds issuing Active Proxy A series of Active Proxy Portfolio Proxy Portfolio Shares, market makers Portfolio Shares will be actively- Shares will disclose the Proxy Portfolio may use the knowledge of a fund’s managed and, to that extent, will be on a daily basis, which, as described means of achieving its investment similar to Managed Fund Shares, Active above, is designed to track closely the objective, as described in the applicable Proxy Portfolio Shares differ from daily performance of the Actual fund registration statement, as well as a Managed Fund Shares in the following Portfolio of a series of Active Proxy fund’s disclosed Proxy Portfolio, to important respects. First, in contrast to Portfolio Shares, instead of the actual construct a hedging proxy for a fund to Managed Fund Shares, which are holdings of the Investment Company, as manage a market maker’s quoting risk in actively-managed funds listed and provided by a series of Managed Fund connection with trading fund shares. traded under NYSE Arca Rule 8.600– Shares. Market makers can then conduct E 14 and for which a ‘‘Disclosed In this regard, with respect to the statistical arbitrage between their Portfolio’’ is required to be disseminated Funds, the Funds will utilize a proxy hedging proxy and shares of a fund, 15 at least once daily, the portfolio for an portfolio methodology—the ‘‘NYSE buying and selling one against the other Proxy Portfolio Methodology’’—that over the course of the trading day. This request in return for the Proxy Portfolio and/or cash would allow market participants to ability should permit market makers to to the holder by the issuer with a value equal to make efficient markets in an issue of the next determined NAV; and (d) the portfolio assess the intraday value and associated holdings for which are disclosed within at least 60 risk of a Fund’s Actual Portfolio and Active Proxy Portfolio Shares without days following the end of every fiscal quarter.’’ thereby facilitate the purchase and sale precise knowledge of a fund’s Proposed Rule 8.601–E(c)(2) provides that ‘‘[t]he of Shares by investors in the secondary underlying portfolio. This is similar to term ‘‘Actual Portfolio’’ means the identities and certain other existing exchange-traded quantities of the securities and other assets held by market at prices that do not vary the Investment Company that shall form the basis materially from their NAV.17 The NYSE products (for example, ETFs that invest for the Investment Company’s calculation of NAV Proxy Portfolio Methodology would at the end of the business day.’’ Proposed Rule 18 The term ‘‘Lead Market Maker’’ is defined in 8.601–E(c)(3) provides that ‘‘[tbhe term ‘‘Proxy Rule 1.1(w) to mean a registered Market Maker that Portfolio’’ means a specified portfolio of securities, quantities of the securities and other assets held by is the exclusive Designated Market Maker in listings other financial instruments and/or cash designed to the Investment Company that will form the basis for for which the Exchange is the primary market. the Investment Company’s calculation of net asset track closely the daily performance of the Actual 19 Statistical arbitrage enables a trader to value at the end of the business day. NYSE Arca Portfolio of a series of Active Proxy Portfolio Shares construct an accurate proxy for another instrument, Rule 8.600–E(d)(2)(B)(i) requires that the Disclosed as provided in the exemptive relief pursuant to the allowing it to hedge the other instrument or buy or Investment Company Act of 1940 applicable to such Portfolio will be disseminated at least once daily sell the instrument when it is cheap or expensive series.’’ and will be made available to all market in relation to the proxy. Statistical analysis permits 14 The Commission has previously approved participants at the same time. traders to discover correlations based purely on listing and trading on the Exchange of a number of 16 A mutual fund is required to file with the trading data without regard to other fundamental issues of Managed Fund Shares under NYSE Arca Commission its complete portfolio schedules for the drivers. These correlations are a function of Rule 8.600–E. See, e.g., Securities Exchange Act second and fourth fiscal quarters on Form N–CSR differentials, over time, between one instrument or Release Nos. 57801 (May 8, 2008), 73 FR 27878 under the 1940 Act. Information reported on Form group of instruments and one or more other (May 14, 2008) (SR–NYSEArca–2008–31) (order N–PORT for the third month of a fund’s fiscal instruments. Once the nature of these price approving Exchange listing and trading of twelve quarter will be made publicly available 60 days deviations have been quantified, a universe of actively-managed funds of the WisdomTree Trust); after the end of a fund’s fiscal quarter. Form N– securities is searched in an effort to, in the case of 60460 (August 7, 2009), 74 FR 41468 (August 17, PORT requires reporting of a fund’s complete a hedging strategy, minimize the differential. Once 2009) (SR–NYSEArca–2009–55) (order approving portfolio holdings on a position-by-position basis a suitable hedging proxy has been identified, a listing of Dent Tactical ETF); 63076 (October 12, on a quarterly basis within 60 days after fiscal trader can minimize portfolio risk by executing the 2010), 75 FR 63874 (October 18, 2010) (SR– quarter end. Investors can obtain a series of Active hedging basket. The trader then can monitor the NYSEArca–2010–79) (order approving Exchange Proxy Portfolio Shares’ Statement of Additional performance of this hedge throughout the trade listing and trading of Cambria Global Tactical ETF); Information (‘‘SAI’’), its Shareholder Reports, its period making corrections where warranted. In the 63802 (January 31, 2011), 76 FR 6503 (February 4, Form N–CSR, filed twice a year, and its Form N– case of correlation hedging, the analysis seeks to 2011) (SR–NYSEArca–2010–118) (order approving CEN, filed annually. A series of Active Proxy find a proxy that matches the pricing behavior of Exchange listing and trading of the SiM Dynamic Portfolio Shares’ SAI and Shareholder Reports will a fund. In the case of beta hedging, the analysis Allocation Diversified Income ETF and SiM be available free upon request from the Investment seeks to determine the relationship between the Dynamic Allocation Growth Income ETF). The Company, and those documents and the Form N– price movement over time of a fund and that of Commission also has approved a proposed rule PORT, Form N–CSR, and Form N–CEN may be another stock. Dispersion trading is a hedged change relating to generic listing standards for viewed on-screen or downloaded from the strategy designed to take advantage of relative value Managed Fund Shares. See Securities Exchange Act Commission’s website at www.sec.gov. differences in implied volatilities between an index Release No. 78397 (July 22, 2016), 81 FR 49320 17 The NYSE Proxy Portfolio Methodology is and the component stocks of that index. Such (July 27, 2016 (SR–NYSEArca–2015–110) owned by the NYSE Group, Inc. and licensed for trading strategies will allow market participants to (amending NYSE Arca Equities Rule 8.600 to adopt use by the Funds. NYSE Group, Inc. is not affiliated engage in arbitrage between series of Active Proxy generic listing standards for Managed Fund Shares). with the Funds, Adviser or Distributor. Not all Portfolio Shares and other instruments, both 15 NYSE Arca Rule 8.600–E(c)(2) defines the term series of Active Proxy Portfolio Shares will utilize through the creation and redemption process and ‘‘Disclosed Portfolio’’ as the identities and the NYSE Proxy Portfolio Methodology. strictly through arbitrage without such processes.

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in foreign securities that do not trade concerning the composition and/or underlying portfolio, as is the case with during U.S. trading hours), in which changes to such Investment Company’s Managed Fund Shares. spreads may be generally wider in the Actual Portfolio and/or Proxy In addition, proposed Commentary.05 early days of trading and then narrow as Portfolio.21 Any person related to the provides that any person or entity, market makers gain more confidence in investment adviser or Investment including a custodian, Reporting their real-time hedges. Company who makes decisions Authority, distributor, or administrator, who has access to non-public Description of the Funds and the Trust pertaining to the Investment Company’s Actual Portfolio and/or Proxy Portfolio information regarding the Investment The Funds will be series of the Company’s Actual Portfolio or the Proxy or has access to non-public information American Century ETF Trust (‘‘Trust’’), Portfolio or changes thereto, must be regarding the Investment Company’s which will be registered with the subject to procedures reasonably Commission as an open-end Actual Portfolio and/or Proxy Portfolio designed to prevent the use and management investment company.20 or changes thereto must be subject to dissemination of material non-public American Century Investment procedures reasonably designed to information regarding the applicable Management, Inc. (‘‘Adviser’’) will be prevent the use and dissemination of Investment Company Actual Portfolio or the investment adviser to the Funds. material non-public information the Proxy Portfolio or changes thereto. Foreside Fund Services, LLC will act as regarding the Actual Portfolio and/or Moreover, if any such person or entity the distributor and principal Proxy Portfolio or changes thereto. is registered as a broker-dealer or underwriter (‘‘Distributor’’) for the Proposed Commentary .04 is similar to affiliated with a broker-dealer, such Funds. State Street Bank and Trust Commentary .03(a)(i) and (iii) to NYSE person or entity will erect and maintain Company will serve as transfer agent Arca Rule 5.2–E(j)(3); however, a ‘‘fire wall’’ between the person or (‘‘Transfer Agent’’) for the Funds. proposed Commentary .04, in entity and the broker-dealer with Proposed Commentary.04 provides connection with the establishment of a respect to access to information that, if the investment adviser to the ‘‘fire wall’’ between the investment concerning the composition and/or Investment Company issuing Active adviser and the broker-dealer, reflects changes to such Investment Company Proxy Portfolio Shares is registered as a the applicable open-end fund’s Actual Portfolio or Proxy Portfolio. broker-dealer or is affiliated with a portfolio, not an underlying benchmark The Adviser is not registered as a broker-dealer but is affiliated with a broker-dealer, such investment adviser index, as is the case with index-based broker-dealer. The Adviser has will erect and maintain a ‘‘fire wall’’ funds.22 Proposed Commentary .04 is between the investment adviser and implemented and will maintain a ‘‘fire also similar to Commentary .06 to Rule personnel of the broker-dealer or broker- wall’’ with respect to such broker-dealer 8.600–E related to Managed Fund dealer affiliate, as applicable, with affiliate regarding access to information Shares, except that proposed respect to access to information concerning the composition of and/or Commentary .04 relates to establishment changes to a Fund’s Actual Portfolio or 20 The Trust is registered under the 1940 Act. On and maintenance of a ‘‘fire wall’’ Proxy Portfolio. April 6, 2020, the Trust filed a registration between the investment adviser and In the event (a) the Adviser becomes statement on Form N–1A under the Securities Act personnel of the broker-dealer or broker- registered as a broker-dealer or becomes of 1933 and the 1940 Act for the Funds (File Nos. dealer affiliate, as applicable, applicable 333–221045 and 811–23305) (‘‘Registration newly affiliated with a broker-dealer, or Statement’’). The Trust also filed an application for to an Investment Company’s Actual (b) any new adviser or sub-adviser is a an order under Section 6(c) of the 1940 Act for Portfolio and/or Proxy Portfolio or registered broker-dealer, or becomes exemptions from various provisions of the 1940 Act changes thereto, and not just to the affiliated with a broker-dealer, it will and rules thereunder (File No. 812–15082), dated implement and maintain a fire wall with December 11, 2019 (‘‘American Century Application’’ or ‘‘Application’’). On May 12, 2020, 21 The text of proposed Commentary .04 to NYSE respect to its relevant personnel or its the Commission issued an order granting the Arca Rule 8.601–E is included in Amendment 6 to broker-dealer affiliate regarding access exemptions requested in the Application SR–NYSEArca–2019–95. See note 13, supra. to information concerning the (Investment Company Act Release No. 33862 (May 22 An investment adviser to an open-end fund is composition and/or changes to a Fund’s 12, 2020) (‘‘American Century Exemptive Order’’ or required to be registered under the Investment ‘‘Exemptive Order’’). The American Century Advisers Act of 1940 (the ‘‘Advisers Act’’). As a Actual Portfolio and/or Proxy Portfolio, Application states that the exemptive relief result, the Adviser and its related personnel will be and will be subject to procedures requested by the Trust will apply to funds of the subject to the provisions of Rule 204A–1 under the designed to prevent the use and Trust that comply with the terms and conditions of Advisers Act relating to codes of ethics. This Rule dissemination of material non-public the American Century Exemptive Order and the requires investment advisers to adopt a code of order issued to Natixis ETF Trust II. With respect ethics that reflects the fiduciary nature of the information regarding a Fund’s Actual to the Natixis ETF Trust II, see Seventh Amended relationship to clients as well as compliance with Portfolio and/or Proxy Portfolio or and Restated Application for an Order under other applicable securities laws. Accordingly, changes thereto. Any person related to Section 6(c) of the 1940 Act for exemptions from procedures designed to prevent the communication the Adviser or a Fund who makes various provisions of the 1940 Act and rules and misuse of non-public information by an thereunder (File No. 812–14870) (October 21, 2019 investment adviser must be consistent with Rule decisions pertaining to the Fund’s (‘‘Natixis Application’’); the Commission notice 204A–1 under the Advisers Act. In addition, Rule Actual Portfolio and/or the Proxy regarding the Natixis Application (Investment 206(4)–7 under the Advisers Act makes it unlawful Portfolio or has access to non-public Company Release No. 33684 (File No. 812–14870) for an investment adviser to provide investment information regarding a Fund’s Actual November 14, 2019); and the Commission order advice to clients unless such investment adviser has under the 1940 Act granting the exemptions (i) adopted and implemented written policies and Portfolio and/or the Proxy Portfolio or requested in the Natixis Application (Investment procedures reasonably designed to prevent changes thereto are subject to Company Act Release No. 33711 (December 10, violations, by the investment adviser and its procedures reasonably designed to 2019)) (‘‘Natixis Exemptive Order’’). The American supervised persons, of the Advisers Act and the prevent the use and dissemination of Century Application incorporates the Natixis Commission rules adopted thereunder; (ii) Exemptive Order by reference. Investments made by implemented, at a minimum, an annual review material non-public information the Funds will comply with the conditions set forth regarding the adequacy of the policies and regarding a Fund’s Actual Portfolio and/ in the American Century Application, American procedures established pursuant to subparagraph (i) or the Proxy Portfolio or changes Century Exemptive Order and Natixis Exemptive above and the effectiveness of their thereto. Order. The description of the operation of the Trust implementation; and (iii) designated an individual In addition, any person or entity, and the Funds herein is based, in part, on the (who is a supervised person) responsible for Registration Statement and the American Century administering the policies and procedures adopted including any service provider for a Application. under subparagraph (i) above. Fund, who has access to non-public

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information regarding a Fund’s Actual Century Exemptive Order.24 Any foreign proper form is received. The NAV of a Portfolio or the Proxy Portfolio or common stocks held by a Fund will be Fund is expected to be determined as of changes thereto, will be subject to traded on an exchange that is a member 4:00 p.m. E.T. on each ‘‘Business procedures reasonably designed to of the Intermarket Surveillance Group Day.’’ 26 The ‘‘Creation Basket’’ (as prevent the use and dissemination of (‘‘ISG’’) or with which the Exchange has defined below) for a Fund will be based material non-public information in place a comprehensive surveillance on the Proxy Portfolio, which is regarding a Fund’s Actual Portfolio and/ sharing agreement. designed to approximate the value and or the Proxy Portfolio or changes American Century Mid Cap Growth performance of the Actual Portfolio. All thereto. Moreover, if any such person or Impact ETF Creation Basket instruments will be entity is registered as a broker-dealer or valued in the same manner as they are affiliated with a broker-dealer, such According to the Registration valued for purposes of calculating a person or entity has erected and will Statement, the Fund will seek long-term Fund’s NAV, and such valuation will be capital growth. The Fund, under normal made in the same manner regardless of maintain a ‘‘fire wall’’ between the 25 person or entity and the broker-dealer market conditions, will invest the identity of the purchaser or with respect to access to information principally in exchange-traded common redeemer. Further, the total stocks and will invest at least 80% of its concerning the composition and/or consideration paid for the purchase or assets in securities of medium changes to a Fund’s Actual Portfolio redemption of a Creation Unit of Shares capitalization companies. and/or Proxy Portfolio. will be based on the NAV of such Fund, American Century Sustainable Equity as calculated in accordance with the The Funds ETF policies and procedures set forth in its Registration Statement. According to the Application, the According to the Registration Adviser believes a Fund would allow Statement, the Fund will seek long-term The Trust will sell and redeem for efficient trading of Shares through an capital growth. The Fund, under normal Creation Units of each Fund only on a effective Fund portfolio transparency market conditions, will invest at least Business Day. Creation Units of the substitute and publication of related 80% of its assets in equity securities. Funds may be purchased and/or information metrics, while still The Fund will invest principally in redeemed entirely for cash, as shielding the identity of the full Fund exchange-traded common stocks. permissible under the procedures described below. portfolio contents to protect a Fund’s Creations and Redemptions of Shares performance-seeking strategies. Even In order to keep costs low and permit though a Fund would not publish its According to the Registration each Fund to be as fully invested as full portfolio contents daily, the Adviser Statement, the Trust will offer, issue possible, Shares will be purchased and believes that the NYSE Proxy Portfolio and sell Shares of the Funds to investors redeemed in Creation Units and Methodology would allow market only in specified minimum size generally on an in-kind basis. participants to assess the intraday value ‘‘Creation Units’’ through the Distributor Accordingly, except where the purchase and associated risk of a Fund’s Actual on a continuous basis at the NAV per or redemption will include cash under Portfolio. As a result, the Adviser Share next determined after an order in the circumstances specified below, believes that investors would be able to purchasers will be required to purchase 24 purchase and sell Shares in the Pursuant to the American Century Application Creation Units by making an in-kind and American Century Exemptive Order, the deposit of specified instruments secondary market at prices that are close permissible investments for a Fund are only the to their NAV. following: ETFs traded on a U.S. exchange; (‘‘Deposit Instruments’’), and exchange-traded notes (‘‘ETNs’’) traded on a U.S. shareholders redeeming their Shares In this regard, the Funds will utilize exchange; U.S. exchange-traded common stocks; will receive an in-kind transfer of a proxy portfolio methodology—the common stocks listed on a foreign exchange that specified instruments (‘‘Redemption trade on such exchange contemporaneously with ‘‘NYSE Proxy Portfolio Methodology’’— Instruments’’). The names and that would allow market participants to the Shares (‘‘foreign common stocks’’) in the Exchange’s Core Trading Session (normally 9:30 quantities of the instruments that assess the intraday value and associated a.m. and 4:00 p.m. Eastern time (‘‘E.T.’’)); U.S. constitute the Deposit Instruments and risk of a Fund’s Actual Portfolio and exchange-traded preferred stocks; U.S. exchange- the Redemption Instruments for a Fund thereby facilitate the purchase and sale traded American Depositary Receipts (‘‘ADRs’’); U.S. exchange-traded real estate investment trusts; (collectively, the ‘‘Creation Basket’’) will of Shares of a Fund by investors in the U.S. exchange-traded commodity pools; U.S. be the same as a Fund’s Proxy Portfolio, secondary market at prices that do not exchange-traded metals trusts; U.S. exchange-traded except to the extent purchases and vary materially from their NAV.23 The currency trusts; and U.S. exchange-traded futures that trade contemporaneously with a Fund’s Shares. redemptions are made entirely or in part NYSE Proxy Portfolio Methodology 27 In addition, a Fund may hold cash and cash on a cash basis. would utilize creation of a Proxy equivalents (short-term U.S. Treasury securities, If there is a difference between the Portfolio for hedging and arbitrage government money market funds, and repurchase NAV attributable to a Creation Unit and purposes. agreements). Pursuant to the Application and Exemptive Order, the Funds will not hold short the aggregate market value of the Each Fund’s holdings will conform to positions or invest in derivatives other than U.S. Creation Basket exchanged for the the permissible investments as set forth exchange-traded futures will not borrow for Creation Unit, the party conveying in the American Century Application investment purposes, and will not purchase any instruments with the lower value will securities that are illiquid investments at the time and American Century Exemptive Order of purchase. also pay to the other an amount in cash and the holdings will be consistent with 25 The term ‘‘normal market conditions’’ is equal to that difference (the ‘‘Cash all requirements in the American defined in proposed Rule 8.601–E(c)(6), which Amount’’). Century Application and American states as follows: The term ‘‘normal market conditions’’ includes, but is not limited to, the absence of trading halts in the applicable financial 26 A Business Day is any day on which the 23 The NYSE Proxy Portfolio Methodology is markets generally; operational issues (e.g., systems Exchange is open for business. owned by the NYSE Group, Inc. and licensed for failure) causing dissemination of inaccurate market 27 The Adviser represents that, to the extent that use by the Funds. NYSE Group, Inc. is not affiliated information; or force majeure type events such as a Fund allows creations and redemptions to be with the Funds, Adviser or Distributor. Not all natural or manmade disaster, act of God, armed conducted in cash, such transactions will be series of Active Proxy Portfolio Shares will utilize conflict, act of terrorism, riot or labor disruption or effected in the same manner for all Authorized the NYSE Proxy Portfolio Methodology. any similar intervening circumstance. Participants transacting in cash.

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Each Fund will adopt and implement purchaser (or redeemer) to receive the represented that the Funds’ website will policies and procedures regarding the NAV determined on the Transmittal also provide: (1) Any other information composition of its Creation Baskets. The Date. regarding premiums/discounts as may policies and procedures will set forth be required for other ETFs under Rule Daily Disclosures detailed parameters for the construction 6c–11 under the 1940 Act, as amended, and acceptance of baskets in compliance With respect to the Funds, the and (2) any information regarding the with the terms and conditions of the following information will comprise the bid/ask spread for a Fund as may be American Century Exemptive Order and ‘‘Proxy Portfolio Disclosures’’ and, required for other ETFs under Rule 6c– that are in the best interests of a Fund pursuant to the American Century 11 under the 1940 Act, as amended. The and its shareholders, including the Application and Exemptive Order, will website and information will be process for any revisions to or be publicly available on the Funds’ publicly available at no charge. Each deviations from those parameters. website (www.americancenturyetfs.com) Fund’s website also will disclose the A Fund that normally issues and before the commencement of trading in information required under proposed redeems Creation Units in kind may Shares on each Business Day: Rule 8.601–E(c)(3).29 The Proxy • require purchases and redemptions to The Proxy Portfolio holdings Portfolio holdings for each Fund be made entirely or in part on a cash (including the identity and quantity of (including the identity and quantity of basis. In such an instance, a Fund will investments in the Proxy Portfolio) will investments in the Proxy Portfolio) will announce, before the open of trading in be publicly available on the Funds’ be publicly available on the Funds’ the Core Trading Session (normally, website before the commencement of website before the commencement of 9:30 a.m. to 4:00 p.m., E.T.) on a given trading in Shares on each Business Day. trading in Shares on each Business Day. Business Day, that all purchases, all • The historical ‘‘Tracking Error’’ Typical mutual fund-style annual, redemptions, or all purchases and between a Fund’s last published NAV semi-annual and quarterly disclosures redemptions on that day will be made per share and the value, on a per Share contained in the Funds’ Commission wholly or partly in cash. A Fund may basis, of a Fund’s Proxy Portfolio filings will be provided on the Funds’ also determine, upon receiving a calculated as of the close of trading on website on a current basis.30 Thus, each purchase or redemption order from an the prior Business Day will be publicly Fund will publish the portfolio contents Authorized Participant, to have the available on the Funds’ website before of its Actual Portfolio on a periodic purchase or redemption, as applicable, the commencement of trading in Shares basis within at least 60 days following be made entirely or in part in cash. Each each Business Day. the end of every fiscal quarter. Business Day, before the open of trading • The ‘‘Proxy Overlap’’ will be Investors can also obtain a Fund’s on the Exchange, a Fund will cause to publicly available on the Funds’ website prospectus, SAI, Shareholder Reports, be published through the National before the commencement of trading in Form N–CSR, N–PORT and Form N– Securities Clearing Corporation Shares on each Business Day. The Proxy CEN filed with the Commission. The (‘‘NSCC’’) the names and quantities of Overlap is the percentage weight prospectus, SAI and Shareholder the instruments comprising the Creation overlap between the Proxy Portfolio’s Reports are available free upon request Basket, as well as the estimated Cash holdings compared to the Actual from the Trust, and those documents Amount (if any), for that day. The Portfolio’s holdings that formed the and the Form N–CSR, N–PORT, and published Creation Basket will apply basis for a Fund’s calculation of NAV at Form N–CEN may be viewed on-screen until a new Creation Basket is the end of the prior Business Day. The or downloaded from the Commission’s announced on the following Business Proxy Overlap will be calculated by website. The Exchange also notes that Day, and there will be no intra-day taking the lesser weight of each asset pursuant to its Exemptive Order, the changes to the Creation Basket except to held in common between the Actual issuer must comply with Regulation correct errors in the published Creation Portfolio and the Proxy Portfolio and Fair Disclosure, which prohibits Basket. adding the totals. selective disclosure of any material non- All orders to purchase Creation Units Availability of Information public information. must be placed with the Distributor by Information regarding market price or through an Authorized Participant, The Funds’ website and trading volume of the Shares will be which is either: (1) A ‘‘participating (www.americancenturyetfs.com), which continually available on a real-time party’’ (i.e., a broker or other will be publicly available prior to the basis throughout the day on brokers’ participant), in the Continuous Net public offering of Shares, will include a computer screens and other electronic Settlement (‘‘CNS’’) System of the form of the prospectus for each Fund services. Information regarding the NSCC, a clearing agency registered with that may be downloaded. The Funds’ previous day’s closing price and trading the Commission and affiliated with the website will include on a daily basis, volume information for the Shares will Depository Trust Company (‘‘DTC’’), or per Share for each Fund, the prior be published daily in the financial (2) a DTC Participant, which in any case Business Day’s NAV and the ‘‘Closing section of newspapers. has executed a participant agreement Price’’ or ‘‘Bid/Ask Price,’’ 28 and a Updated price information for U.S. with the Distributor and the Transfer calculation of the premium/discount of exchange-listed equity securities is Agent. the Closing Price or Bid/Ask Price available through major market data against such NAV. The Adviser has Timing and Transmission of Purchase 29 See note 13, supra. Proposed Rule 8.601–E Orders 28 The records relating to Bid/Ask Prices will be (c)(3) provides that the website for each series of All orders to purchase (or redeem) retained by the Funds or their service providers. Active Proxy Portfolio Shares shall disclose the The ‘‘Bid/Ask Price’’ is the midpoint of the highest information regarding the Proxy Portfolio as Creation Units, whether using the NSCC bid and lowest offer based upon the National Best provided in the exemptive relief pursuant to the Process or the DTC Process, must be Bid and Offer as of the time of calculation of a Investment Company Act of 1940 applicable to such received by the Distributor no later than Fund’s NAV. The ‘‘National Best Bid and Offer’’ is series, including the following, to the extent the NAV calculation time (‘‘NAV the current national best bid and national best offer applicable: (i) Ticker symbol; (ii) CUSIP or other as disseminated by the Consolidated Quotation identifier; (iii) Description of holding; (iv) Quantity Calculation Time’’), generally 4:00 p.m. System or UTP Plan Securities Information of each security or other asset held; and (v) E.T. on the date the order is placed Processor. The ‘‘Closing Price’’ of Shares is the Percentage weighting of the holding in the portfolio. (‘‘Transmittal Date’’) in order for the official closing price of the Shares on the Exchange. 30 See note 16, supra.

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vendors or securities exchanges trading Specifically, proposed Rule 8.601– requirements will continue to apply in such securities. Quotation and last sale E(d)(2)(D) provides that the Exchange accordance with Exchange rules and information for the Shares, ETFs, ETNs, may consider all relevant factors in federal securities laws, and the U.S. exchange-traded common stocks, exercising its discretion to halt trading Exchange and the Financial Industry preferred stocks and ADRs will be in a series of Active Proxy Portfolio Regulatory Authority, Inc. (‘‘FINRA’’) available via the Consolidated Tape Shares. Trading may be halted because will continue to monitor Exchange Association (‘‘CTA’’) high-speed line or of market conditions or for reasons that, members for compliance with such from the exchange on which such in the view of the Exchange, make requirements. securities trade. Price information for trading in the series of Active Proxy Surveillance futures, foreign stocks and cash Portfolio Shares inadvisable. These may equivalents is available through major include: (a) The extent to which trading The Exchange represents that trading market data vendors. Intraday pricing is not occurring in the securities and/or in the Shares will be subject to the information for all constituents of the the financial instruments composing the existing trading surveillances, Proxy Portfolio that are exchange- Proxy Portfolio and/or Actual Portfolio; administered by the Exchange, as well traded, which includes all eligible or (b) whether other unusual conditions as cross-market surveillances instruments except cash and cash or circumstances detrimental to the administered by FINRA on behalf of the equivalents, will be available on the maintenance of a fair and orderly Exchange, which are designed to detect exchanges on which they are traded and market are present. If the Exchange violations of Exchange rules and through subscription services. Intraday becomes aware that the NAV, Proxy applicable federal securities laws.34 The pricing information for cash equivalents Portfolio or Actual Portfolio with Exchange represents that these will be available through subscription respect to a series of Active Proxy procedures are adequate to properly services and/or pricing services. Portfolio Shares is not disseminated to monitor Exchange trading of the Shares all market participants at the same time, in all trading sessions and to deter and Investment Restrictions the Exchange shall halt trading in such detect violations of Exchange rules and The Shares of each Fund will conform series until such time as the NAV, Proxy federal securities laws applicable to to the initial and continued listing Portfolio or Actual Portfolio is available trading on the Exchange. criteria under proposed Rule 8.601–E. A to all market participants at the same The surveillances referred to above Fund’s holdings will be limited to and time. generally focus on detecting securities consistent with permissible holdings as Trading Rules trading outside their normal patterns, described in the Application and all which could be indicative of The Exchange deems the Shares to be requirements in the Application and manipulative or other violative activity. Exemptive Order.31 equity securities, thus rendering trading in the Shares subject to the Exchange’s When such situations are detected, Each Fund’s investments, including existing rules governing the trading of surveillance analysis follows and derivatives, will be consistent with its equity securities. Shares will trade on investigations are opened, where investment objective and will not be the NYSE Arca Marketplace in all appropriate, to review the behavior of used to enhance leverage (although trading sessions in accordance with all relevant parties for all relevant certain derivatives and other NYSE Arca Rule 7.34–E(a). As provided trading violations. investments may result in leverage). in NYSE Arca Rule 7.6–E, the minimum The Exchange or FINRA, on behalf of That is, a Fund’s investments will not price variation (‘‘MPV’’) for quoting and the Exchange, or both, will be used to seek performance that is the entry of orders in equity securities communicate as needed regarding multiple or inverse multiple (e.g., 2X or traded on the NYSE Arca Marketplace is trading in the Shares and underlying –3X) of a Fund’s primary broad-based $0.01, with the exception of securities exchange-traded instruments with other securities benchmark index (as defined that are priced less than $1.00 for which markets and other entities that are in Form N–1A).32 the MPV for order entry is $0.0001. members of the ISG, and the Exchange Trading Halts The Shares will conform to the initial or FINRA, on behalf of the Exchange, or and continued listing criteria under both, may obtain trading information With respect to trading halts, the proposed NYSE Arca Rule 8.601–E. The regarding trading the Shares and Exchange may consider all relevant Exchange has appropriate rules to exchange-traded instruments from such factors in exercising its discretion to facilitate trading in the Shares during all markets and other entities. In addition, halt or suspend trading in the Shares of the Exchange may obtain information 33 trading sessions. a Fund. Trading in Shares of a Fund A minimum of 100,000 Shares for regarding trading in the Shares and will be halted if the circuit breaker each Fund will be outstanding at the exchange-traded instruments from parameters in NYSE Arca Rule 7.12–E commencement of trading on the markets and other entities that are have been reached. Trading also may be Exchange. In addition, pursuant to members of ISG or with which the halted because of market conditions or proposed Rule 8.601–E(d)(1)(B), the Exchange has in place a comprehensive for reasons that, in the view of the Exchange, prior to commencement of surveillance sharing agreement.35 Exchange, make trading in the Shares trading in the Shares, will obtain a The Adviser will make available daily inadvisable. Trading in the Shares will representation from the issuer of the to FINRA and the Exchange the Actual be subject to NYSE Arca Rule 8.601– Shares of each Fund that the NAV per Portfolio of the Funds, upon request, in E(d)(2)(D), which sets forth Share will be calculated daily and that order to facilitate the performance of the circumstances under which Shares of a the NAV, Proxy Portfolio and the Actual surveillances referred to above. Fund will be halted. Portfolio for each Fund will be made available to all market participants at 34 FINRA conducts cross-market surveillances on 31 See note 24, supra. the same time. behalf of the Exchange pursuant to a regulatory 32 A Fund’s broad-based securities benchmark With respect to Active Proxy Portfolio services agreement. The Exchange is responsible for index will be identified in a future amendment to FINRA’s performance under this regulatory services the Registration Statement following a Fund’s first Shares, all of the Exchange member agreement. full calendar year of performance. obligations relating to product 35 For a list of the current members of ISG, see 33 See NYSE Arca Rule 7.12–E. description and prospectus delivery www.isgportal.org.

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In addition, the Exchange also has a this rule filing shall constitute certain derivatives and other general policy prohibiting the continued listing requirements for investments may result in leverage). distribution of material, non-public listing the Shares on the Exchange. The That is, a Fund’s investments will not information by its employees. Exchange will obtain a representation be used to seek performance that is the Proposed Commentary .03 to NYSE from the Adviser, prior to multiple or inverse multiple (e.g., 2X or Arca Rule 8.601–E provides that the commencement of trading in the Shares, –3X) of a Fund’s primary broad-based Exchange will implement and maintain that it will advise the Exchange of any securities benchmark index (as defined written surveillance procedures for failure by a Fund to comply with the in Form N–1A). Active Proxy Portfolio Shares. As part of continued listing requirements, and, The Exchange or FINRA, on behalf of these surveillance procedures, the pursuant to its obligations under the Exchange, or both, will Investment Company’s investment Section 19(g)(1) of the Act, the Exchange communicate as needed regarding adviser will upon request by the will monitor for compliance with the trading in the Shares and underlying Exchange or FINRA, on behalf of the continued listing requirements. If a Exchange, make available to the Fund is not in compliance with the exchange-traded instruments with other Exchange or FINRA the daily Actual applicable listing requirements, the markets and other entities that are Portfolio holdings of each series of Exchange will commence delisting members of the ISG, and the Exchange Active Proxy Portfolio Shares. The procedures under NYSE Arca Rule 5.5– or FINRA, on behalf of the Exchange, or Exchange believes that the ability to E(m). both, may obtain trading information access the information on an as needed regarding trading in the Shares and basis will provide it with sufficient 2. Statutory Basis exchange-traded instruments from such information to perform the necessary The Exchange believes that the markets and other entities. In addition, regulatory functions associated with proposed rule change is consistent with the Exchange may obtain information listing and trading series of Active Section 6(b) of the Act,36 in general, and regarding trading in the Shares and Proxy Portfolio Shares on the Exchange, furthers the objectives of Section 6(b)(5) exchange-traded instruments from including the ability to monitor of the Act,37 in particular, in that it is markets and other entities that are compliance with the initial and designed to prevent fraudulent and members of ISG or with which the continued listing requirements as well manipulative acts and practices, to Exchange has in place a comprehensive as the ability to surveil for manipulation promote just and equitable principles of surveillance sharing agreement. of Active Proxy Portfolio Shares. trade, to remove impediments to and The Exchange, after consulting with The Exchange will utilize its existing perfect the mechanism of a free and various LMMs that trade ETFs on the procedures to monitor issuer open market and a national market Exchange, believes that market makers compliance with the requirements of system, and, in general, to protect will be able to make efficient and liquid proposed Rule 8.601–E. For example, investors and the public interest. markets priced near the ETF’s intraday With respect to the proposed listing the Exchange will continue to use value, and market makers employ and trading of Shares of the Funds, the intraday alerts that will notify Exchange market making techniques such as Exchange believes that the proposed personnel of trading activity throughout ‘‘statistical arbitrage,’’ including the day that may indicate that unusual rule change is designed to prevent correlation hedging, beta hedging, and conditions or circumstances are present fraudulent and manipulative acts and dispersion trading, which is currently that could be detrimental to the practices in that the Shares will be used throughout the financial services maintenance of a fair and orderly listed and traded on the Exchange pursuant to the initial and continued industry, to make efficient markets in market. The Exchange will require from 40 the issuer of a series of Active Proxy listing criteria in proposed NYSE Arca exchange-traded products. For Active Portfolio Shares, upon initial listing and Rule 8.601–E.38 Proxy Portfolio Shares, market makers periodically thereafter, a representation Each Fund’s holdings will conform to may use the knowledge of a fund’s that it is in compliance with proposed the permissible investments as set forth means of achieving its investment Rule 8.601–E. The Exchange notes that in the American Century Application objective, as described in the applicable proposed Commentary .01 to Rule and the Exemptive Order and the fund registration statement, as well as a 8.601–E would require an issuer of holdings will be consistent with all fund’s disclosed Proxy Portfolio, to Active Proxy Portfolio Shares to notify requirements in the American Century construct a hedging proxy for a fund to the Exchange of any failure to comply Application and American Century manage a market maker’s quoting risk in with the continued listing requirements Exemptive Order.39 Any foreign connection with trading fund shares. of proposed Rule 8.601–E. In addition, common stocks held by a Fund will be Market makers can then conduct the Exchange will require funds to traded on an exchange that is a member statistical arbitrage between their represent that they will notify the of the ISG or with which the Exchange hedging proxy and shares of a fund, Exchange of any failure to comply with has in place a comprehensive buying and selling one against the other the terms of applicable exemptive and surveillance sharing agreement. over the course of the trading day. This no-action relief. As part of its Each Fund’s investments will be ability should permit market makers to surveillance procedures, the Exchange consistent with its investment objective. make efficient markets in an issue of will rely on the foregoing procedures to Each Fund’s investments, including Active Proxy Portfolio Shares without become aware of any non-compliance derivatives, will be consistent with its precise knowledge of a fund’s with the requirements of proposed Rule investment objective and will not be underlying portfolio. This is similar to 8.601–E. used to enhance leverage (although certain other existing exchange-traded With respect to the Funds, all products (for example, ETFs that invest statements and representations made in 36 15 U.S.C. 78f(b). in foreign securities that do not trade this filing regarding (a) the description 37 15 U.S.C. 78f(b)(5). during U.S. trading hours), in which of the portfolio or reference asset, (b) 38 The Exchange represents that, for initial and spreads may be generally wider in the continued listing, the Funds will be in compliance limitations on portfolio holdings or with Rule 10A–3 under the Act, as provided by early days of trading and then narrow as reference assets, or (c) the applicability NYSE Arca Rule 5.3–E. of Exchange listing rules specified in 39 See note 24, supra. 40 See note 19, supra.

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market makers gain more confidence in equities. Disclosure of a fund’s E(d)(2)(D), which provides that the their real-time hedges. investment objective and principal Exchange may consider all relevant The Funds will utilize the NYSE investment strategies in its prospectus factors in exercising its discretion to Proxy Portfolio Methodology that would and SAI should permit professional halt trading in a series of Active Proxy allow market participants to assess the investors to engage easily in this type of Portfolio Shares. Trading may be halted intraday value and associated risk of a hedging activity. because of market conditions or for Fund’s Actual Portfolio and thereby The proposed rule change is designed reasons that, in the view of the facilitate the purchase and sale of to promote just and equitable principles Exchange, make trading in the series of Shares by investors in the secondary of trade and to protect investors and the Active Proxy Portfolio Shares market at prices that do not vary public interest in that the Exchange will inadvisable. These may include: (a) The materially from their NAV. obtain a representation from the Funds extent to which trading is not occurring The daily dissemination of the that the NAV per Share of a Fund will in the securities and/or the financial identity and quantity of Proxy Portfolio be calculated daily and that the NAV, instruments composing the Proxy component investments, together with Proxy Portfolio and Actual Portfolio for Portfolio and/or Actual Portfolio; or (b) the right of Authorized Participants to each Fund will be made available to all whether other unusual conditions or create and redeem each day at the NAV, market participants at the same time. circumstances detrimental to the will be sufficient for market participants Investors can obtain a Fund’s SAI, maintenance of a fair and orderly to value and trade Shares in a manner shareholder reports, and its Form N– market are present. If the Exchange that will not lead to significant CSR, Form N–PORT and Form N–CEN. becomes aware that the NAV, Proxy deviations between the Shares’ Bid/Ask A Fund’s SAI and shareholder reports Portfolio or Actual Portfolio with Price and NAV. will be available free upon request from respect to a series of Active Proxy With respect to Active Proxy Portfolio a Fund, and those documents and the Portfolio Shares is not disseminated to Shares generally, the pricing efficiency Form N–CSR, Form N–PORT and Form all market participants at the same time, with respect to trading a series of Active N–CEN may be viewed on-screen or the Exchange shall halt trading in such Proxy Portfolio Shares will generally downloaded from the Commission’s series until such time as the NAV, Proxy rest on the ability of market participants website. In addition, with respect to Portfolio or Actual Portfolio is available to arbitrage between the shares and a each Fund, a large amount of to all market participants at the same fund’s portfolio, in addition to the information will be publicly available time. ability of market participants to assess a regarding the Funds and the Shares, The proposed rule change is designed fund’s underlying value accurately thereby promoting market transparency. to perfect the mechanism of a free and enough throughout the trading day in Quotation and last sale information for open market and, in general, to protect order to hedge positions in shares the Shares, ETFs, ETNs, U.S. exchange- investors and the public interest in that effectively. Professional traders can buy traded common stocks, preferred stocks it will facilitate the listing and trading shares that they perceive to be trading and ADRs will be available via the CTA of an additional type of actively- at a price less than that which will be high-speed line or from the exchange on managed exchange-traded product that available at a subsequent time and sell which such securities trade. Price will enhance competition among market shares they perceive to be trading at a information for futures, foreign stocks participants, to the benefit of investors price higher than that which will be and cash equivalents is available and the marketplace. The Exchange will available at a subsequent time. It is through major market data vendors. The obtain a representation from the expected that, as part of their normal website for the Funds will include a Adviser, prior to commencement of day-to-day trading activity, market form of the prospectus for each Fund trading in the Shares of a Fund, that it makers assigned to shares by the that may be downloaded, and additional will advise the Exchange of any failure Exchange, off-exchange market makers, data relating to NAV and other by a Fund to comply with the continued firms that specialize in electronic applicable quantitative information, listing requirements, and, pursuant to trading, hedge funds and other updated on a daily basis. Trading in its obligations under Section 19(g)(1) of professionals specializing in short-term, Shares of the Funds will be halted if the the Act, the Exchange will monitor for non-fundamental trading strategies will circuit breaker parameters in NYSE Arca compliance with the continued listing assume the risk of being ‘‘long’’ or Rule 7.12–E have been reached or requirements. If a Fund is not in ‘‘short’’ shares through such trading and because of market conditions or for compliance with the applicable listing will hedge such risk wholly or partly by reasons that, in the view of the requirements, the Exchange will simultaneously taking positions in Exchange, make trading in the Shares commence delisting procedures under correlated assets 41 or by netting the inadvisable. In addition, as noted above, NYSE Arca Rule 5.5–E(m). exposure against other, offsetting investors will have ready access to the As noted above, the Exchange has in trading positions—much as such firms Proxy Portfolio and quotation and last place surveillance procedures relating to do with existing ETFs and other sale information for the Shares. The trading in the Shares and may obtain Proxy Portfolio holdings for each Fund information via ISG from other 41 Price correlation trading is used throughout the (including the identity and quantity of exchanges that are members of ISG or financial industry. It is used to discover both trading opportunities to be exploited, such as investments in the Proxy Portfolio) will with which the Exchange has entered currency pairs and statistical arbitrage, as well as be publicly available on the Funds’ into a comprehensive surveillance for risk mitigation such as dispersion trading and website before the commencement of sharing agreement. In addition, as noted beta hedging. These correlations are a function of trading in Shares on each Business Day. above, investors will have ready access differentials, over time, between one or multiple securities pricing. Once the nature of these price The Shares will conform to the initial to information regarding quotation and deviations have been quantified, a universe of and continued listing criteria under last sale information for the Shares. 42 securities is searched in an effort to, in the case of proposed Rule 8.601–E. B. Self-Regulatory Organization’s a hedging strategy, minimize the differential. Once The Shares of the Funds will be a suitable hedging basket has been identified, a Statement on Burden on Competition trader can minimize portfolio risk by executing the subject to proposed Rule 8.601– hedging basket. The trader then can monitor the The Exchange does not believe that performance of this hedge throughout the trade 42 See Amendment 6 to SR–NYSEArca–2019–95, the proposed rule change will impose period, making corrections where warranted. referenced in note 13, supra. any burden on competition that is not

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necessary or appropriate in furtherance maintenance of fair and orderly markets information will be publicly available at of the purposes of the Act. The to assure the availability to brokers, no charge. Exchange believes the proposed rule dealers, and investors of information In addition, the Exchange states that change would permit listing and trading with respect to quotations for, and intraday pricing information for all of another type of actively-managed ETF transactions in, securities. constituents of the Proxy Portfolio that that has characteristics different from Specifically, the Commission notes are exchange-traded, which includes all existing actively-managed and index that the Exchange, prior to eligible instruments except cash and ETFs and would introduce additional commencement of trading in the Shares, cash equivalents, will be available on competition among various ETF will obtain a representation from the the exchanges on which they are traded products to the benefit of investors. issuer of the Shares of each Fund that and through subscription services, and the NAV per Share will be calculated that intraday pricing information for C. Self-Regulatory Organization’s daily and that the NAV, Proxy Portfolio, Statement on Comments on the cash equivalents will be available and Actual Portfolio for each Fund will through subscription services and/or Proposed Rule Change Received From be made available to all market Members, Participants, or Others pricing services. participants at the same time.46 The Commission also notes that the No written comments were solicited Information regarding market price and Exchange’s rules regarding trading halts or received with respect to the proposed trading volume of the Shares will be help to ensure the maintenance of fair rule change. continually available on a real-time and orderly markets for the Shares. III. Discussion and Commission basis throughout the day on brokers’ Specifically, pursuant to its rules, the Findings computer screens and other electronic Exchange may consider all relevant services. Quotation and last-sale factors in exercising its discretion to After careful review, the Commission information for the Shares, ETFs, ETNs, finds that the proposed rule change, as halt trading in the Shares and will halt U.S. exchange-traded common stocks, trading in the Shares under the modified by Amendment No. 5, is preferred stocks, and ADRs will be consistent with the Act and rules and conditions specified in NYSE Arca Rule available via the Consolidated Tape 7.12–E. Trading may be halted because regulations thereunder applicable to a Association high-speed line or from the national securities exchange.43 In of market conditions or for reasons that, exchange on which such securities in the view of the Exchange, make particular, the Commission finds that trade. Price information for futures, the proposed rule change, as modified trading in the Shares inadvisable, foreign stocks and cash equivalents is including (1) the extent to which trading by Amendment No. 5 is consistent with available through major market data Section 6(b)(5) of the Act,44 which is not occurring in the securities and/or vendors. The Funds’ website will the financial instruments composing the requires, among other things, that the include additional information updated Exchange’s rules be designed to prevent Proxy Portfolio and/or Actual Portfolio; on a daily basis, including, on a per or (2) whether other unusual conditions fraudulent and manipulative acts and Share basis for each Fund, the prior practices, to promote just and equitable or circumstances detrimental to the business day’s NAV, the closing price or maintenance of a fair and orderly principles of trade, to remove bid/ask price at the time of calculation market are present.48 Trading in the impediments to and perfect the of such NAV, and a calculation of the Shares also will be subject to NYSE mechanism of a free and open market premium or discount of the closing Arca Rule 8.601–E(d)(2)(D), which sets and a national market system, and, in price or bid/ask price against such NAV. forth additional circumstances under general, to protect investors and the The website will also disclose the which trading in the Shares will be public interest. The Commission notes percentage weight overlap between the halted. that in a separate order, it approved the holdings of the Proxy Portfolio The Commission also believes that the Exchange’s proposed rule change to compared to the Actual Portfolio adopt NYSE Arca Rule 8.601–E to holdings for the prior business day, and proposal is reasonably designed to help permit the listing and trading of Active any other information regarding prevent fraudulent and manipulative Proxy Portfolio Shares.45 premiums and discounts and the bid/ acts and practices. Specifically, the The Commission believes that the Exchange provides that: ask spread for a Fund as may be • proposal is reasonably designed to required for other ETFs under Rule 6c– The Adviser is not registered as a promote fair disclosure of information 11 under the 1940 Act. The Proxy broker-dealer but is affiliated with a that may be necessary to price the Portfolio holdings for each Fund broker-dealer and has implemented and Shares appropriately and to prevent (including the identity and quantity of will maintain a ‘‘fire wall’’ with respect trading in the Shares when a reasonable investments in the Proxy Portfolio) will to such broker-dealer affiliate regarding degree of certain pricing transparency be publicly available on the Funds’ access to information concerning the cannot be assured. As such, the website before the commencement of composition of and/or changes to a Commission believes the proposal is trading in Shares on each Business Day Fund’s Actual Portfolio and/or Proxy reasonably designed to maintain a fair and each Fund’s website will disclose Portfolio; • and orderly market for trading the the information required under Rule Any person related to the Adviser Shares. The Commission also finds that 8.601–E(c)(3).47 The website and or a Fund who makes decisions the proposal is consistent with Section pertaining to the Fund’s Actual Portfolio 11A(a)(1)(C)(iii) of the Act, which sets 46 See NYSE Arca Rule 8.601–E(d)(1)(B). and/or Proxy Portfolio or who has forth Congress’s finding that it is in the 47 See Rule 8.601–E(c)(3), which requires that the access to non-public information public interest and appropriate for the website for each series of Active Proxy Portfolio regarding a Fund’s Actual Portfolio and/ protection of investors and the Shares shall disclose the information regarding the or the Proxy Portfolio or changes thereto Proxy Portfolio as provided in the exemptive relief pursuant to the Investment Company Act of 1940 are subject to procedures reasonably 43 In approving this proposed rule change, the applicable to such series, including the following, designed to prevent the use and Commission notes that it has considered the to the extent applicable: (i) Ticker symbol; (ii) dissemination of material non-public proposed rule’s impact on efficiency, competition, CUSIP or other identifier; (iii) description of information regarding a Fund’s Actual and capital formation. See 15 U.S.C. 78c(f). holding; (iv) quantity of each security or other asset 44 15 U.S.C. 78f(b)(5). held; and (v) percentage weighting of the holding 45 See note 3 supra. in the portfolio. 48 See NYSE Arca Rule 8.601–E(d)(2)(D)(i).

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Portfolio and/or the Proxy Portfolio or (1) The Shares will conform to the Shares, that the Adviser will advise the changes thereto; initial and continued listing criteria Exchange of any failure by a Fund to • In the event (a) the Adviser under NYSE Arca Rule 8.601–E. comply with the continued listing becomes registered as a broker-dealer or (2) A minimum of 100,000 Shares for requirements and, pursuant to its becomes newly affiliated with a broker- each Fund will be outstanding at the obligations under Section 19(g)(1) of the dealer or (b) any new adviser or sub- commencement of trading on the Act, the Exchange will monitor 51 for adviser is a registered broker-dealer, or Exchange. compliance with the continued listing becomes affiliated with a broker-dealer, (3) The Exchange or FINRA, on behalf requirements. If a Fund is not in it will implement and maintain a fire of the Exchange, or both, will compliance with the applicable listing wall with respect to its relevant communicate as needed, and may requirements, the Exchange will personnel or its broker-dealer affiliate obtain information, regarding trading in commence delisting procedures under regarding access to information the Shares and underlying exchange- NYSE Arca Rule 5.5–E(m). traded instruments with other markets concerning the composition of and/or IV. Solicitation of Comments on changes to a Fund’s Actual Portfolio and other entities that are members of the ISG. In addition, the Exchange may Amendment No. 5 to the Proposed Rule and/or Proxy Portfolio, and will be Change subject to procedures designed to obtain information regarding trading in prevent the use and dissemination of the Shares and exchange-traded Interested persons are invited to material non-public information instruments from markets and other submit written data, views, and regarding a Fund’s Actual Portfolio and/ entities with which the Exchange has in arguments concerning whether the or Proxy Portfolio or changes thereto; place a comprehensive surveillance proposed rule change, as modified by and sharing agreement. Any foreign common Amendment No. 5, is consistent with stocks held by a Fund will be traded on • Any person or entity, including any the Exchange Act. Comments may be an exchange that is a member of the ISG service provider for a Fund, who has submitted by any of the following or with which the Exchange has in place access to non-public information methods: a comprehensive surveillance sharing regarding a Fund’s Actual Portfolio or agreement. Electronic Comments the Proxy Portfolio or changes thereto (4) The Exchange has appropriate • will be subject to procedures reasonably Use the Commission’s internet rules to facilitate transactions in the designed to prevent the use and comment form (http://www.sec.gov/ Shares during all trading sessions. dissemination of material non-public rules/sro.shtml); or (5) For initial and continued listing, • information regarding a Fund’s Actual Send an email to rule-comments@ the Funds will be in compliance with sec.gov. Please include File Number SR– Portfolio and/or the Proxy Portfolio or 50 Rule 10A–3 under the Act. NYSEArca–2019–96 on the subject line. changes thereto, and if any such person (6) Each Fund’s holdings will conform or entity is registered as a broker-dealer to the permissible investments as set Paper Comments or affiliated with a broker-dealer, such forth in the Application and Exemptive • person or entity has erected and will Send paper comments in triplicate Order and the holdings will be to Secretary, Securities and Exchange maintain a ‘‘fire wall’’ between the consistent with all requirements set person or entity and the broker-dealer Commission, 100 F Street NE, forth in the Application and Exemptive Washington, DC 20549–1090. with respect to access to information Order. Each Fund’s investments, All submissions should refer to File concerning the composition of and/or including derivatives, will be consistent Number SR–NYSEArca–2019–96. This changes to a Fund’s Actual Portfolio with its investment objective and will file number should be included on the and/or Proxy Portfolio. not be used to enhance leverage subject line if email is used. To help the Finally, the Exchange represents that (although certain derivatives and other Commission process and review your trading in the Shares will be subject to investments may result in leverage). the existing trading surveillances, (7) With respect to Active Proxy comments more efficiently, please use administered by the Exchange, as well Portfolio Shares, all of the Exchange only one method. The Commission will as cross-market surveillances member obligations relating to product post all comments on the Commission’s administered by FINRA on behalf of the description and prospectus delivery internet website (http://www.sec.gov/ Exchange,49 and that these surveillance requirements will continue to apply in rules/sro.shtml). Copies of the procedures are adequate to properly accordance with Exchange rules and submission, all subsequent monitor Exchange trading of the Shares federal securities laws, and the amendments, all written statements in all trading sessions and to deter and Exchange and FINRA will continue to with respect to the proposed rule detect violations of Exchange rules and monitor Exchange members for change that are filed with the federal securities laws applicable to compliance with such requirements. Commission, and all written trading on the Exchange. The Exchange also represents that all communications relating to the The Exchange deems the Shares to be statements and representations made in proposed rule change between the equity securities, thus rendering trading the filing regarding: (1) The description Commission and any person, other than in the Shares subject to the Exchange’s of the portfolios or reference assets; (2) 51 The Commission notes that certain proposals existing rules governing the trading of limitations on portfolio holdings or for the listing and trading of exchange-traded equity securities. reference assets; or (3) the applicability products include a representation that the exchange In support of this proposal, the of Exchange listing rules specified in the will ‘‘surveil’’ for compliance with the continued Exchange represents that: filing constitute continued listing listing requirements. See, e.g., Securities Exchange Act Release No. 77499 (April 1, 2016), 81 FR 20428, requirements for listing the Shares on 20432 (April 7, 2016) (SR–BATS–2016–04). In the 49 See NYSE Arca Rule 8.601–E, Commentary .03, the Exchange. In addition, the Exchange context of this representation, it is the which requires, as part of the surveillance represents that the Exchange will obtain Commission’s view that ‘‘monitor’’ and ‘‘surveil’’ procedures for Active Proxy Portfolio Shares, a a representation from the Adviser, prior both mean ongoing oversight of compliance with Fund’s investment adviser to, upon request by the the continued listing requirements. Therefore, the Exchange or FINRA, on behalf of the Exchange, to commencement of trading in the Commission does not view ‘‘monitor’’ as a more or make available to the Exchange or FINRA the daily less stringent obligation than ‘‘surveil’’ with respect Actual Portfolio holdings of the Fund. 50 See 17 CFR 240.10A–3. to the continued listing requirements.

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those that may be withheld from the Accordingly, the Commission finds filed with the Securities and Exchange public in accordance with the good cause, pursuant to Section 19(b)(2) Commission (‘‘Commission’’) the provisions of 5 U.S.C. 552, will be of the Exchange Act,54 to approve the proposed rule change as described in available for website viewing and proposed rule change, as modified by Items I, II, and III below, which Items printing in the Commission’s Public Amendment No. 5, on an accelerated have been prepared by the Exchange. Reference Room, 100 F Street NE, basis. The Exchange filed the proposed rule Washington, DC 20549, on official change pursuant to Section VI. Conclusion business days between the hours of 19(b)(3)(A)(ii) of the Act,3 and Rule 10:00 a.m. and 3:00 p.m. Copies of the It is therefore ordered, pursuant to 19b–4(f)(2) thereunder,4 which renders filing also will be available for Section 19(b)(2) of the Act 55 that the the proposal effective upon filing with inspection and copying at the principal proposed rule change (SR–NYSEArc– the Commission. The Commission is office of the Exchange. All comments 2019–96), as modified by Amendment publishing this notice to solicit received will be posted without change. No. 5, be, and it hereby is, approved on comments on the proposed rule change Persons submitting comments are an accelerated basis. from interested persons. cautioned that we do not redact or edit For the Commission, by the Division of I. Self-Regulatory Organization’s personal identifying information from Trading and Markets, pursuant to delegated Statement of the Terms of the Substance comment submissions. You should authority.56 of the Proposed Rule Change submit only information that you wish J. Matthew DeLesDernier, to make available publicly. All Assistant Secretary. The Exchange is filing with the submissions should refer to File [FR Doc. 2020–14490 Filed 7–6–20; 8:45 am] Securities and Exchange Commission Number SR–NYSEArca–2019–96, and (‘‘Commission’’) a proposed rule change BILLING CODE 8011–01–P should be submitted on or before July to amend the Fee Schedule on the BOX 28, 2020. Options Market LLC (‘‘BOX’’) facility. The text of the proposed rule change is V. Accelerated Approval of Proposed SECURITIES AND EXCHANGE available from the principal office of the Rule Change, as Modified by COMMISSION Exchange, at the Commission’s Public Amendment No. 5 [Release No. 34–89194; File No. SR–BOX– Reference Room and also on the The Commission finds good cause to 2020–22] Exchange’s internet website at http:// approve the proposed rule change, as boxexchange.com. modified by Amendment No. 5, prior to Self-Regulatory Organizations; BOX the thirtieth day after the date of Exchange LLC; Notice of Filing and II. Self-Regulatory Organization’s publication of notice of the filing of Immediate Effectiveness of a Proposed Statement of the Purpose of, and Amendment No. 5 in the Federal Rule Change To Amend the Fee Statutory Basis for, the Proposed Rule Register. In Amendment No. 5, the Schedule on the BOX Options Market Change LLC Facility To Establish Section I.C.2 Exchange modified the description of In its filing with the Commission, the (Strategy Order Facilitation and each Fund and conformed the Exchange included statements Solicitation Transactions) description of NYSE Arca Rule 8.601–E concerning the purpose of and basis for to the final rule approved in the Active June 30, 2020. the proposed rule change and discussed 52 Proxy Portfolio Shares Order. Pursuant to Section 19(b)(1) of the any comments it received on the Amendment No. 5 also provides other Securities Exchange Act of 1934 proposed rule change. The text of these clarifications and additional (‘‘Act’’),1 and Rule 19b–4 thereunder,2 statements may be examined at the 53 information related to the Funds. The notice is hereby given that on June 15, places specified in Item IV below. The changes and additional information in 2020, BOX Exchange LLC (‘‘Exchange’’) Exchange has prepared summaries, set Amendment No. 5 assist the forth in Sections A, B, and C below, of Commission in finding that the proposal 54 15 U.S.C. 78s(b)(2). the most significant aspects of such is consistent with the Exchange Act. 55 Id. statements. 56 17 CFR 200.30–3(a)(12). 52 See supra note 3. 1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A)(ii). 53 See Amendment No. 5, supra note 12. 2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(2).

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establish Section I.C.2 (Strategy Order stock interest strategies, merger A. Self-Regulatory Organization’s Facilitation and Solicitation strategies, reversal strategies, conversion Statement of the Purpose of, and Transactions). Specifically, the strategies, jelly roll strategies, and box Statutory Basis for, the Proposed Rule 5 Change Exchange proposes to establish fees and spread strategies. The Strategy Order rebates for Strategy Order Facilitation Facilitation and Solicitation 1. Purpose and Solicitation transactions which transactions will be subject to the The Exchange proposes to amend the include the following strategies: Short following fees: Fee Schedule for trading on BOX to Agency order Facilitation order or solicitation order Responses in the solicitation or facilitation auction mechanisms Account type Penny Non-penny Penny Non-penny Penny Non-penny pilot classes pilot classes pilot classes pilot classes pilot classes pilot classes

Public Customer ...... $0.00 $0.00 $0.00 $0.00 $0.25 $0.40 Professional Customer ..... $0.10 $0.10 $0.10 $0.10 $0.25 $0.40 Broker Dealer ...... $0.25 $0.25 $0.25 $0.25 $0.25 $0.40 Market Maker ...... $0.25 $0.25 $0.25 $0.25 $0.25 $0.40

Further, the Exchange proposes that Orders executed on the BOX Trading the order into the BOX system will the fees for these transactions will be Floor. Under Section II (Manual receive the $500 rebate (once the $1,000 capped at $1,000 per day per customer. Transactions) of the BOX Fee Schedule, fee cap is hit). The Exchange proposes that on each Broker Dealers and Market Makers The Exchange also proposes to amend trading day, Participants are eligible to Strategy QOO Orders’ are charged $0.25 Section III (Liquidity Fees and Credits). receive a $500 rebate per customer for for the Strategy QOO Orders and Specifically, the Exchange proposes to executing the Strategy Orders listed Professional Customers are charged amend Section III.B to state that the above through the Facilitation or $0.10 for their Strategy QOO Orders. transactions in proposed Section I.C.2 Solicitation mechanisms. The rebate These orders are capped at $1,000 on a (Strategy Order Facilitation and will be applied once the $1,000 fee cap daily basis and Floor Brokers are Solicitation Transactions) are exempt per customer is met. Further, the rebate eligible for a $500 rebate for presenting from the fees and credits detailed in will be paid to the Participant that these Strategy QOO Orders on the Section III.B. entered the order into the BOX system.6 Trading Floor once the $1000 fee cap is Lastly, the Exchange proposes to Additionally, the Exchange is proposing met.7 renumber footnotes through the fee to add clarifying text to Section II.D. of The Exchange is now proposing a schedule in conjunction to the changes the Fee Schedule (Strategy QOO Order similar fee and rebate structure for discussed herein. Fee Cap and Rebate) to make clear that Strategy Orders executed electronically 2. Statutory Basis the daily cap and rebate is applied on through the Facilitation or Solicitation a per customer basis. The proposed text Auction Mechanisms.8 With regard to The Exchange believes that the does not substantively alter the manner the rebate, the Exchange notes that on proposal is consistent with the in which fees are assessed or rebates are the Trading Floor, Floor Brokers who requirements of Section 6(b) of the Act, applied, the proposed text merely present such transactions to the Trading in general, and Section 6(b)(4) and updates the Fee Schedule language to Floor receive the $500 rebate once the 6(b)(5)of the Act,9 in particular, in that make clear how fees and rebates are $1,000 fee cap is hit. Here, the Exchange it provides for the equitable allocation calculated. proposes that when Strategy Orders are of reasonable dues, fees, and other The Exchange notes that the proposed executed electronically through the charges among BOX Participants and fee structure is similar to what is Facilitation and Solicitation other persons using its facilities and currently assessed for these Strategy mechanisms, the Participant who enters does not unfairly discriminate between 5 The Exchange notes that the following definitions for these strategies already exist in the second position involves selling a put and buying Fee Cap, Floor Broker 1, who entered these orders BOX Fee Schedule. The Exchange is simply moving a call, with the same strike price, but with a on behalf of Customer A into the BOX system, will different expiration from the first position. A ‘‘box the definitions to the proposed section discussed receive the $500 rebate. Under this proposal, Floor spread strategy’’ is a strategy that synthesizes long above. A ‘‘short stock interest strategy’’ is defined Broker 1 may execute some or all of these orders and short stock positions to create a profit. as a transaction done to achieve a short stock electronically through the Facilitation and Specifically, a long call and short put at one strike Solicitation mechanisms. If so, Customer A’s fees interest arbitrage involving the purchase, sale, and is combined with a short call and long put at a exercise of in-the-money options of the same class. for any orders executed through the Facilitation or different strike to create synthetic long and Solicitation Mechanisms will be combined with any A ‘‘merger strategy’’ is defined as transactions done synthetic short stock positions, respectively. The to achieve a merger arbitrage involving the orders executed on the BOX Trading Floor with Exchange notes that ‘‘dividend strategies’’ are not regard to the daily fee cap. purchase, sale and exercise of options of the same eligible for the proposed fees, fee cap and rebate in 7 The Exchange notes, as previously mentioned class and expiration date, each executed prior to the the Strategy Facilitation and Solicitation auction date on which shareholders of record are required mechanism. Dividend strategies executed through above, the daily cap and rebate are applied on a per to elect their respective form of consideration, i.e., the Facilitation or Solicitation auction mechanism customer basis. cash or stock. A ‘‘reversal strategy’’ is established will continue to be subject to the fees in Section I.C. 8 The Exchange notes that Participants are by combining a short security position with a short of the BOX Fee Schedule and the rebate in Section currently able to send these orders through the put and a long call position that shares the same I.C.1. Facilitation and Solicitation mechanisms, however strike and expiration. A ‘‘conversion strategy’’ is 6 The Exchange notes that with regard to the daily they are not eligible for the fee cap or rebate that established by combining a long position in the cap, fees assessed for Strategy QOO Orders is provided Strategy QOO Orders on the BOX underlying security with a long put and a short call executed on the BOX Trading Floor will be Trading Floor. The Exchange believes that position that shares the same strike and expiration. combined with the fees assessed electronically. For providing the daily fee cap and rebate to electronic A ‘‘jelly roll strategy’’ is created by entering into example, when Customer A sends certain Strategy market participants will result in increased order two separate positions simultaneously. One QOO Orders to Floor Broker 1 on the Trading Floor, flow through the Facilitation and Solicitation position involves buying a put and selling a call Customer A’s fees for these orders will be capped mechanisms benefiting all market participants. with the same strike price and expiration. The at $1,000 per day. If Customer A reaches the $1,000 9 15 U.S.C. 78f(b)(4) and (5).

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customers, issuers, brokers or dealers. The Exchange believes the proposed auction mechanisms for all other The Exchange notes that it operates in $0.25 fees for Agency Orders and transactions. The Exchange believes it is a highly competitive market in which Facilitation or Solicitation Orders for reasonable to establish different fees for the Exchange must continually reassess Broker Dealers and Market Makers and Strategy Order Facilitation and its fees in order to maintain its the proposed $0.10 fee for Agency Order Solicitation transactions in Penny Pilot competitiveness within the options and Facilitation or Solicitation Orders Classes compared to transactions in exchange industry. The proposed for Professional Customers are Non-Penny Pilot Classes. The Exchange changes reflect a competitive pricing reasonable and appropriate as these fees makes this distinction throughout the structure designed to incentivize market are currently assessed to Participants on BOX Fee Schedule, including the participants to direct their order flow to the BOX Trading Floor for Strategy QOO Exchange fees for PIP and COPIP the Exchange. Orders.11 Further, the Exchange believes Transactions. The Exchange believes it The Exchange believes establishing that charging Professional Customers is reasonable to establish higher fees for the fee structure for Strategy Order and Broker Dealers and Market Makers Non-Penny Pilot Classes because these Facilitation and Solicitation more than Public Customers for Agency Classes are typically less actively traded Transactions is reasonable, equitable Orders and Facilitation and Solicitation and have wider spreads. and not unfairly discriminatory. The Orders is reasonable, equitable and not The Exchange believes the proposed Exchange believes that the proposed unfairly discriminatory. The securities $1000 fee cap is reasonable as it is in fees are reasonable as they are in line markets generally, and BOX in line with the fee cap that is currently with the fees currently assessed for particular, have historically aimed to applied to Strategy QOO Orders on the Strategy QOO Orders on the BOX improve markets for investors and BOX Trading Floor. The proposed fee Trading Floor. As discussed herein, the develop various features within the cap is designed to incentivize order flow Exchange is establishing similar fees to market structure for Public Customer in Strategy Orders, and the Exchange the fees assessed on the Trading Floor benefit. The Exchange believes that believes that the proposed fee cap, and making the daily fee cap and rebate charging no fees to Public Customers for coupled with the other changes for these orders available to market Strategy Orders in the Facilitation and discussed herein, will result in participants who wish to execute Solicitation auction mechanisms is increased participation in Strategy Strategy Orders electronically, or both reasonable and, ultimately, will benefit Orders on BOX. As such, the Exchange electronically and on the BOX Trading all Participants trading on the Exchange believes the increased order flow in Floor. The Exchange believes that the by attracting Public Customer order Strategy Orders will result in increased proposed fee structure will incentivize flow. Further, the Exchange believes it liquidity on BOX to the benefit of all market participants to submit Strategy is reasonable and appropriate to assess market participants. Further, the Orders through the Facilitation or Professional Customers a lower fee than Exchange believes that the proposed fee Solicitation mechanisms resulting in Broker Dealers and Market Makers cap is equitable and not unfairly increased liquidity on the Exchange because it is intended to attract a greater discriminatory because all Participants benefitting all market participants.10 number of Professional Customer are subject to the cap, regardless of The Exchange believes that the Strategy Orders to the Exchange. The account type. proposed fees for Strategy Orders Exchange believes the potential The Exchange believes the proposed executed through the Facilitation and increased volume would create better rebate is reasonable as it is similar in Solicitation Mechanisms are reasonable trading opportunities that benefit all nature to the rebate that is currently and appropriate. As discussed above, market participants. Specifically, greater applied to these types of orders on the the proposed fees are similar to the fees volume and liquidity from increased BOX Trading Floor. As discussed assessed for Strategy QOO Orders on the order flow could create more trading herein, Floor Brokers receive the $500 BOX Trading Floor. The Exchange is opportunities and tighter spreads. (once the $1,000 fee cap is hit) for simply creating a similar fee structure Lastly, the Exchange believes the presenting Strategy QOO Orders on the for Participants who wish to submit proposed fees for Professional Trading Floor. Here, the Exchange Strategy Orders electronically through Customers is appropriate as the proposes that the Participant who enters the Facilitation or Solicitation Auction Exchange is mirroring the fees currently Strategy Orders into the BOX system Mechanism. assessed for Strategy QOO transactions will receive the $500 rebate (once the The Exchange believes that excluding on the BOX Trading Floor.12 $1,000 fee cap is hit). Further, the dividend strategies from the proposed The Exchange also believes the Exchange believes that offering the fees, fee cap and rebate is reasonable proposed fees of $0.25 for Penny Pilot proposed rebate will result in increased and appropriate. The Exchange notes Classes and $0.40 for Non-Penny Pilot order flow to these auction mechanisms that this type of order is best suited for Classes for Responses in the Facilitation which, in turn, will benefit all market execution on the BOX Trading Floor or Solicitation Auction Mechanisms are participants. The Exchange also believes and the Exchange does not believe reasonable and equitable. The proposed the proposed rebate is equitable and not incentivizing electronic dividend fees are the same rates currently charged unfairly discriminatory as the rebate is strategies is necessary. for each account type for Responses in available to all Participants who submit BOX’s Facilitation and Solicitation such orders to BOX. 10 The Exchange notes that there is a larger The Exchange believes that responding community electronically versus on the 11 The Exchange notes that Public Customers will aggregating electronic Strategy Order BOX Trading Floor. The Exchange believes that not be assessed a fee for Agency Orders or fees and Strategy QOO Order fees on the establishing fees that are similar to the current floor Facilitation Orders or Solicitation Orders in the BOX Trading Floor for purposes of fees (including the daily fee cap and rebate) will proposed fee structure. The Exchange believes this result in increased order flow to these mechanisms is reasonable as Public Customers are not assessed calculating the proposed fee cap and resulting in more responses and ultimately more fees for these types of transactions on the BOX rebate is reasonable, equitable and not executions on the Exchange. As discussed herein, Trading Floor and are not assessed fees in the unfairly discriminatory. With regard to the proposed rebate will be paid to the Participant current Facilitation and Solicitation auction the proposed daily fee cap and rebate, who enters the Strategy Orders into the BOX system mechanisms. Further, BOX notes that it recently where the rebate on the BOX Trading Floor is paid filed a fee change to reduce the Professional the Exchange believes combining the to the Floor Broker who presented the Strategy Customer QOO Order fee. See SR–BOX–2020–18. electronic transaction fees and manual QOO Orders on the Trading Floor. 12 Id. transaction fees is not a novel concept.

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On Nasdaq Phlx LLC (‘‘Phlx’’), a volume necessary with the proposed changes III. Date of Effectiveness of the based rebate is paid for all qualifying above. Further, the Exchange believes Proposed Rule Change and Timing for executed Qualified Contingent Cross that this proposed change is equitable Commission Action (‘‘QCC’’) Orders including both and not unfairly discriminatory because The foregoing rule change has become 13 electronic and manual transactions. all Strategy Orders executed through the effective pursuant to Section Specifically, Phlx applies a tiered rebate Facilitation or Solicitation mechanism 19(b)(3)(A)(ii) of the Exchange Act 15 structure ranging from $0.05 to $0.11 will be exempt from Liquidity Fees and and Rule 19b–4(f)(2) thereunder,16 per contract for all QCC transaction Credits, regardless of account type. because it establishes or changes a due, volume—electronic and manual. or fee. Further, Phlx applies a Monthly Firm B. Self-Regulatory Organization’s Statement on Burden on Competition At any time within 60 days of the Fee Cap of $75,000 for all floor option filing of the proposed rule change, the transaction charges and QCC The Exchange does not believe that Commission summarily may Transaction Fees (both electronic and the proposed rule change will impose temporarily suspend the rule change if manual). any burden on competition not it appears to the Commission that the The Exchange believes that combining necessary or appropriate in furtherance action is necessary or appropriate in the the electronic and manual transaction of the purposes of the Act. The public interest, for the protection of fees as discussed herein will incentivize Exchange believes the proposed investors, or would otherwise further market participants to send these types Complex Order Facilitation and the purposes of the Act. If the of Complex Orders to the Exchange, Solicitation Transaction fees will not Commission takes such action, the either electronically and/or manually, to impose a burden on competition among Commission shall institute proceedings take advantage of the proposed fee cap various Exchange Participants. Rather, to determine whether the proposed rule and rebate. The Exchange believes the BOX believes that the changes will should be approved or disapproved. proposed cap and rebate will result in result in the Participants being charged IV. Solicitation of Comments increased order flow which could result appropriately for Strategy Order in more executions on the Exchange, Facilitation and Solicitation Interested persons are invited to benefitting all market participants. The Transactions and are designed to submit written data, views, and Exchange believes this proposed change enhance competition in these auction arguments concerning the foregoing, is equitable and not unfairly mechanisms. Submitting an order is including whether the proposed rule discriminatory as all Participants are entirely voluntary and Participants can change is consistent with the Act. subject to the proposed daily fee cap determine which type of order they Comments may be submitted by any of 14 and rebate. wish to submit, if any, to the Exchange. the following methods: The Exchange believes that the Further, the Exchange does not believe proposed non-substantive clarifying Electronic Comments that capping the fees for Strategy Orders • language in Section II.D. of the Fee will impose an undue burden on Use the Commission’s internet comment form (http://www.sec.gov/ Schedule is reasonable and equitable competition because all Participants are rules/sro.shtml); or because the added text is intended to eligible for the fee cap. Lastly, the • Send an email to rule-comments@ provide greater clarity to Participants Exchange does not believe that offering with regard to how the Exchange sec.gov. Please include File Number SR– a rebate to Participants will impose an BOX–2020–22 on the subject line. assesses fees and provides rebates. The undue burden on competition because Exchange notes that the proposed non- all Participants are eligible to transact Paper Comments substantive clarifying text does not Strategy Orders on BOX and receive a • Send paper comments in triplicate amend any fee or rebate, nor alter the rebate. manner in which it assesses fees or to Secretary, Securities and Exchange In terms of inter-market competition, calculates rebates. Commission, 100 F Street NE, Lastly, the Exchange believes that the the Exchange notes that it operates in a Washington, DC 20549–1090. proposed change to exempt the highly competitive market in which All submissions should refer to File proposed Strategy Order Facilitation market participants can readily favor Number SR–BOX–2020–22. This file and Solicitation transactions from the competing venues if they deem fee number should be included on the liquidity fees and credits detailed in levels at a particular venue to be subject line if email is used. To help the Section III.B of the BOX Fee Schedule excessive, or rebate opportunities Commission process and review your is reasonable and appropriate as the available at other venues to be more comments more efficiently, please use proposed fees are intended to mirror the favorable. In such an environment, the only one method. The Commission will fees assessed to Strategy QOO Orders on Exchange must continually adjust its post all comments on the Commission’s the BOX Trading Floor. Further, fees and rebates to remain competitive internet website (http://www.sec.gov/ Liquidity Fees and Credits are meant to with other exchanges. Because rules/sro.shtml). Copies of the promote order flow to BOX, which the competitors are free to modify their own submission, all subsequent Exchange believes is no longer fees in response, and because market amendments, all written statements participants may readily send their with respect to the proposed rule 13 See Phlx Fee Schedule Options 7, Section 4. order flow to competing venues, the change that are filed with the 14 Under this proposal, Participants will have the degree to which fee changes in this Commission, and all written ability to execute Strategy QOO Orders on the market may impose any burden on communications relating to the Trading Floor (if they are an approved Floor Broker) competition is extremely limited. proposed rule change between the or execute the same types of orders through the Complex Order Facilitation or Solicitation Orders C. Self-Regulatory Organization’s Commission and any person, other than electronically. The Exchange does not believe a Statement on Comments on the those that may be withheld from the Participant with a presence on the Trading Floor Proposed Rule Change Received From public in accordance with the and on the electronic market has an unfair provisions of 5 U.S.C. 552, will be advantage as all market participants have the ability Members, Participants, or Others to become a Floor Participant and extend their presence on the electronic Exchange and the No written comments were either 15 15 U.S.C. 78s(b)(3)(A)(ii). physical Trading Floor. solicited or received. 16 17 CFR 240.19b–4(f)(2).

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available for website viewing and I. Self-Regulatory Organization’s summaries, set forth in sections A, B, printing in the Commission’s Public Statement of the Terms of Substance of and C below, of the most significant Reference Room, 100 F Street NE, the Proposed Rule Change aspects of such statements. Washington, DC 20549 on official FINRA is proposing to adopt A. Self-Regulatory Organization’s business days between the hours of temporary Supplementary Material .16 Statement of the Purpose of, and 10:00 a.m. and 3:00 p.m. Copies of such (Temporary Extension of Time to Statutory Basis for, the Proposed Rule filing also will be available for Complete Office Inspections) under Change inspection and copying at the principal FINRA Rule 3110 (Supervision) that, in office of the Exchange. All comments light of the operational challenges 1. Purpose received will be posted without change. member firms are facing due to the FINRA is closely monitoring the Persons submitting comments are outbreak of the coronavirus disease impact of the COVID–19 pandemic on cautioned that we do not redact or edit (COVID–19), would extend the time by member firms, investors, and other personal identifying information from which member firms must complete stakeholders. FINRA recognizes that comment submissions. You should their calendar year 2020 inspection firms are experiencing operational submit only information that you wish obligations under Rule 3110(c) (Internal challenges with much of their personnel to make available publicly. All Inspections) to March 31, 2021.4 working from home due to shelter-in- submissions should refer to File Below is the text of the proposed rule place orders, restrictions on businesses Number SR–BOX–2020–22, and should change. Proposed new language is in and social activity imposed in various be submitted on or before July 28, 2020. italics; proposed deletions are in states, and adhering to other social For the Commission, by the Division of brackets. distancing guidelines consistent with Trading and Markets, pursuant to delegated * * * * * the recommendations of public health authority.17 officials.5 FINRA believes that these J. Matthew DeLesDernier, 3000. SUPERVISION AND ongoing extenuating circumstances Assistant Secretary. RESPONSIBILITIES RELATING TO warrant sensible and tailored ASSOCIATED PERSONS [FR Doc. 2020–14492 Filed 7–6–20; 8:45 am] accommodations for member firms to meet their inspection obligations under BILLING CODE 8011–01–P * * * * * Rule 3110(c) for calendar year 2020. 3100. Supervisory Responsibilities Rule 3110(c) requires on-site SECURITIES AND EXCHANGE * * * * * inspections of offices of supervisory COMMISSION jurisdiction (‘‘OSJs’’) and supervisory 3110. Supervision branch offices at least annually (on a [Release No. 34–89188; File No. SR–FINRA– * * * * * calendar-year basis), non-supervisory 2020–019] branch offices at least every three years, (a) through (f) No Change. and non-branch locations on a regular Self-Regulatory Organizations; •••Supplementary Material:——— periodic schedule, presumed to be every Financial Industry Regulatory three years.6 As a result of the Authority, Inc.; Notice of Filing and .01 through .15 No Change. compelling health and welfare concerns .16 Temporary Extension of Time to Immediate Effectiveness of a Proposed stemming from the COVID–19 Rule Change To Temporarily Extend Complete Office Inspections. Each pandemic, firms are facing potentially the Time To Complete Office member obligated to complete an significant disruptions to their normal Inspections Under FINRA Rule 3110 inspection of an office of supervisory business operations that may include (Supervision) jurisdiction, branch office or non- staff absenteeism, the increased use of branch location in calendar year 2020 remote offices or telework arrangements, June 30, 2020. pursuant to, as applicable, paragraphs travel or transportation limitations, and Pursuant to Section 19(b)(1) of the (c)(1)(A), (B) and (C) under Rule 3110, technology interruptions or slowdowns. Securities Exchange Act of 1934 shall be deemed to have satisfied such 1 2 These circumstances make it (‘‘Act’’) and Rule 19b–4 thereunder, obligation if the applicable inspection is impracticable for firms in most cases to notice is hereby given that on June 19, completed on or before March 31, 2021. reach and conduct an on-site inspection 2020, Financial Industry Regulatory * * * * * of office locations. To provide firms an Authority, Inc. (‘‘FINRA’’) filed with the opportunity to better manage these Securities and Exchange Commission II. Self-Regulatory Organization’s Statement of the Purpose of, and operational challenges and the resources (‘‘SEC’’ or ‘‘Commission’’) the proposed attendant to fulfilling these supervisory rule change as described in Items I and Statutory Basis for, the Proposed Rule Change obligations during these pressing times, II below, which Items have been FINRA is proposing to adopt Rule prepared by FINRA. FINRA has In its filing with the Commission, 3110.16 that would extend the time by designated the proposed rule change as FINRA included statements concerning which inspections must be completed in constituting a ‘‘non-controversial’’ rule the purpose of and basis for the accordance with Rule 3110(c) for change under paragraph (f)(6) of Rule proposed rule change and discussed any calendar year 2020 to March 31, 2021.7 19b–4 under the Act,3 which renders comments it received on the proposed FINRA emphasizes that this extension the proposal effective upon receipt of rule change. The text of these statements of time does not relieve firms from the this filing by the Commission. The may be examined at the places specified Commission is publishing this notice to in Item IV below. FINRA has prepared 5 See, e.g., Centers for Disease Control and solicit comments on the proposed rule Prevention, How to Protect Yourself & Others, change from interested persons. 4 The proposed rule change will automatically https://www.cdc.gov/coronavirus/2019-ncov/ sunset on March 31, 2021. If FINRA seeks to prevent-getting-sick/prevention.html (last visited provide additional temporary relief from the rule June 17, 2020). 17 17 CFR 200.30–3(a)(12). requirement identified in this proposal beyond 6 See Rule 3110(c)(1)(A), (B), and (C). See also 1 15 U.S.C. 78s(b)(1). March 31, 2021, FINRA will submit a separate rule Rule 3110.13 (General Presumption of Three-Year 2 17 CFR 240.19b–4. filing to further extend the temporary extension of Limit for Periodic Inspection Schedules). 3 17 CFR 240.19b–4(f)(6). time. 7 See supra note 4.

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on-site inspection requirement of in calendar year 2020 to March 31, obligation under Rule 3110(c), as branch offices and non-branch locations 2021, and does not relieve firms from described above, and the current currently prescribed by the rule. FINRA completing those obligations or from number and types of FINRA member also notes that this proposed extension maintaining, under the circumstances, a locations that require inspections. of time would create further efficiencies reasonably designed system to supervise for firms by aligning with the Municipal the activities of their associated persons C. Economic Impact Securities Rulemaking Board’s to achieve compliance with applicable Proposed Rule 3110.16 is intended (‘‘MSRB’’) temporary extension for securities laws and regulations, and solely to provide an accommodation meeting the inspection requirements of with applicable FINRA rules that from the timing requirements set forth offices set forth under MSRB Rule G–27 directly serve investor protection. In a under Rule 3110(c) (as applicable to 8 (Supervision) to March 31, 2021. time when faced with unique challenges year 2020) due to the current pandemic- FINRA believes that this proposed resulting from the COVID–19 pandemic, related limitations in place across the extension of time is tailored to address FINRA believes that the proposed rule United States to benefit the health and the needs and constraints on a firm’s change is a sensible accommodation welfare of the populace. FINRA believes operations during the COVID–19 that will afford firms the ability to that the proposed rule change will not pandemic, without significantly observe the recommendations of public impose any new costs on member firms. compromising critical investor health officials to provide for the health Moreover, the proposed rule change protection. FINRA believes that and safety of its personnel, while would align with similar temporary potential risks that may arise from continuing to serve and promote the relief provided by the MSRB (as providing firms additional time to protection of investors and the public discussed above), and such coordination interest in this unique environment. comply with their inspection among regulators will provide for obligations due in calendar year 2020 B. Self-Regulatory Organization’s greater clarity and the efficient use of are mitigated by firms’ ongoing Statement on Burden on Competition resources by firms during this public supervisory obligations, off-site health crisis. monitoring, and the temporary nature of FINRA does not believe that the the extension. FINRA will continue to proposed rule change will result in any FINRA notes that even in the current monitor the situation and engage with burden on competition that is not environment, member firms have an member firms, other financial necessary or appropriate in furtherance ongoing obligation to supervise the regulators, and governmental authorities of the purposes of the Act. The activities of their associated persons at to determine whether additional proposed rule change is intended solely their branch offices and non-branch regulatory relief or guidance related to to provide temporary relief given the locations in a manner reasonably this rule may be appropriate. In impacts of the COVID–19 pandemic designed to achieve compliance with 10 particular, FINRA will consider whether crisis. As a result of the temporary applicable securities laws and additional relief may be warranted to nature of the proposed relief, an regulations, and with applicable FINRA address any backlog of 2020 inspections abbreviated economic impact rules. Any risks that may arise from that may continue to exist in light of assessment is appropriate. providing firms additional time to ongoing public health and safety Economic Impact Assessment comply with their Rule 3110(c) concerns. inspection obligations due in calendar FINRA has filed the proposed rule A. Regulatory Objective year 2020 are mitigated by firms’ change for immediate effectiveness and FINRA is proposing Rule 3110.16 to ongoing supervisory obligations, off-site has requested that the SEC waive the address an issue that has arisen due to monitoring, and the temporary nature of requirement that the proposed rule the impacts of the coronavirus outbreak the extension. As noted above, the change not become operative for 30 days and restrictions related to health and proposed rule change would be limited after the date of the filing, so FINRA can safety concerns. In addition to social in time, and in place to March 31, 2021, implement the proposed rule change distancing requirements that have been or until the conclusion of any extension immediately. implemented across the United States to thereof.11 benefit the health and welfare of the C. Self-Regulatory Organization’s 2. Statutory Basis populace, firms are facing potentially FINRA believes that the proposed rule significant business disruptions that Statement on Comments on the change is consistent with the provisions may include staff absenteeism, Proposed Rule Change Received From of Section 15A(b)(6) of the Act,9 which increased use of remote offices or Members, Participants, or Others requires, among other things, that telework arrangements, travel or Written comments were neither FINRA rules must be designed to transportation limitations, and solicited nor received. prevent fraudulent and manipulative technology interruptions or slowdowns. acts and practices, to promote just and These limitations pose significant III. Date of Effectiveness of the equitable principles of trade, and, in challenges for firms to satisfy the on-site Proposed Rule Change and Timing for general, to protect investors and the inspection component of Rule 3110(c), Commission Action public interest. The proposed rule which requires travel to visit offices and Because the foregoing proposed rule change is intended to provide firms non-branch locations. In recognition of change does not: (i) Significantly affect additional time to comply with their these circumstances, the proposed rule the protection of investors or the public Rule 3110(c) inspection obligations due change would provide temporary relief by extending the date by which firms interest; (ii) impose any significant 8 See Securities Exchange Act Release No. 88694 must complete their 2020 inspections. burden on competition; and (iii) become (April 20, 2020), 85 FR 23088 (April 24, 2020) operative for 30 days from the date on (Notice of Filing and Immediate Effectiveness of B. Economic Baseline which it was filed, or such shorter time File No SR–MSRB–2020–01). See also MSRB Notice The Economic Baseline of the as the Commission may designate, it has 2020–09 (MSRB Amends Certain Rules to Provide Regulatory Relief During COVID–19 Pandemic) proposed temporary relief is the become effective pursuant to Section (April 9, 2020). 9 15 U.S.C. 78o–3(b)(6). 10 See also FINRA Regulatory Notice 20–08. 11 See supra note 4.

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19(b)(3)(A) of the Act 12 and Rule 19b– it appears to the Commission that such All submissions should refer to File 4(f)(6) thereunder.13 action is necessary or appropriate in the Number SR–FINRA–2020–019 and A proposed rule change filed under public interest, for the protection of should be submitted on or before July Rule 19b–4(f)(6) normally does not investors, or otherwise in furtherance of 28, 2020. become operative for 30 days after the the purposes of the Act. If the For the Commission, by the Division of date of filing. However, pursuant to Commission takes such action, the Trading and Markets, pursuant to delegated Rule 19b–4(f)(6)(iii), the Commission Commission shall institute proceedings authority.15 may designate a shorter time if such to determine whether the proposed rule J. Matthew DeLesDernier, action is consistent with the protection should be approved or disapproved. Assistant Secretary. of investors and the public interest. IV. Solicitation of Comments [FR Doc. 2020–14487 Filed 7–6–20; 8:45 am] FINRA has asked the Commission to BILLING CODE 8011–01–P waive the 30-day operative delay so that Interested persons are invited to this proposed rule change may become submit written data, views and arguments concerning the foregoing, operative immediately upon filing. SECURITIES AND EXCHANGE including whether the proposed rule FINRA has stated that the requested COMMISSION relief in this proposed rule change is in change is consistent with the Act. response to the potentially significant Comments may be submitted by any of [Release No. 34–89205; File No. SR–NYSE– disruptions to normal business the following methods: 2020–55] operations that may include staff Electronic Comments Self-Regulatory Organizations; New absenteeism, the increased use of • Use the Commission’s internet York Stock Exchange LLC; Notice of remote offices or telework arrangements, comment form (http://www.sec.gov/ Filing of Proposed Rule Change To travel or transportation limitations, and rules/sro.shtml); or Amend Rules 7.36 and 7.37 technology interruptions or slowdowns. • Send an email to rule-comments@ FINRA notes also that such June 30, 2020. sec.gov. Please include File Number SR– 1 circumstances make it impracticable for FINRA–2020–019 on the subject line. Pursuant to Section 19(b)(1) of the firms in most cases to reach and Securities Exchange Act of 1934 (the conduct an on-site inspection of office Paper Comments ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 locations. FINRA states that the • Send paper comments in triplicate notice is hereby given that, on June 24, temporary relief provided for in the to Secretary, Securities and Exchange 2020, New York Stock Exchange LLC proposed rule change will provide firms Commission, 100 F Street NE, (‘‘NYSE’’ or the ‘‘Exchange’’) filed with an opportunity to better manage these Washington, DC 20549–1090. the Securities and Exchange operational challenges and the resources All submissions should refer to File Commission (the ‘‘Commission’’) the attendant to fulfilling these supervisory Number SR–FINRA–2020–019. This file proposed rule change as described in obligations. We note that this proposal number should be included on the Items I and II below, which Items have provides only temporary relief from the subject line if email is used. To help the been prepared by the self-regulatory time required to complete office Commission process and review your organization. The Commission is inspections; as proposed, these changes comments more efficiently, please use publishing this notice to solicit would be in place through March 31, only one method. The Commission will comments on the proposed rule change 2021. FINRA also stated that the post all comments on the Commission’s from interested persons. amended rule will revert back to its internet website (http://www.sec.gov/ I. Self-Regulatory Organization’s original state at the conclusion of the rules/sro.shtml). Copies of the Statement of the Terms of Substance of temporary relief period and, if submission, all subsequent the Proposed Rule Change applicable, any extension thereof. For amendments, all written statements The Exchange proposes to amend these reasons, the Commission believes with respect to the proposed rule Rules 7.36 and 7.37 relating to Setter that waiver of the 30-day operative change that are filed with the Priority. The proposed rule change is delay is consistent with the protection Commission, and all written available on the Exchange’s website at of investors and the public interest. communications relating to the www.nyse.com, at the principal office of Accordingly, the Commission hereby proposed rule change between the the Exchange, and at the Commission’s waives the 30-day operative delay and Commission and any person, other than Public Reference Room. designates the proposal operative upon those that may be withheld from the 14 filing. public in accordance with the II. Self-Regulatory Organization’s At any time within 60 days of the provisions of 5 U.S.C. 552, will be Statement of the Purpose of, and filing of the proposed rule change, the available for website viewing and Statutory Basis for, the Proposed Rule Commission summarily may printing in the Commission’s Public Change temporarily suspend such rule change if Reference Room, 100 F Street NE, In its filing with the Commission, the Washington, DC 20549, on official 12 self-regulatory organization included 15 U.S.C. 78s(b)(3)(A). business days between the hours of 10 13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– statements concerning the purpose of, 4(f)(6)(iii) requires a self-regulatory organization to a.m. and 3 p.m. Copies of such filing and basis for, the proposed rule change give the Commission written notice of its intent to also will be available for inspection and and discussed any comments it received file the proposed rule change, along with a brief copying at the principal office of on the proposed rule change. The text description and text of the proposed rule change, FINRA. All comments received will be at least five business days prior to the date of filing of those statements may be examined at of the proposed rule change, or such shorter time posted without change. Persons the places specified in Item IV below. as designated by the Commission. FINRA has submitting comments are cautioned that The Exchange has prepared summaries, satisfied this requirement. we do not redact or edit personal 14 For purposes only of waiving the 30-day identifying information from comment 15 operative delay, the Commission has considered the 17 CFR 200.30–3(a)(12). proposed rule change’s impact on efficiency, submissions. You should submit only 1 15 U.S.C.78s(b)(1). competition, and capital formation. See 15 U.S.C. information that you wish to make 2 15 U.S.C. 78a. 78c(f). available publicly. 3 17 CFR 240.19b–4.

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set forth in sections A, B, and C below, to the BBO will receive 15% of the (new text italicized, deleted text of the most significant parts of such remaining quantity of the Aggressing bracketed): statements. Order, rounded up to the next round lot Next, an order with Setter Priority that has size or the remaining displayed quantity A. Self-Regulatory Organization’s a display price and working price equal to of the order with Setter Priority, Statement of the Purpose of, and the the BBO will trade with [receive 15% of] the whichever is lower. That Rule further remaining quantity of the Aggressing Order[, Statutory Basis for, the Proposed Rule provides that an order with Setter rounded up to the next round lot size or the Change Priority is eligible for allocation under remaining displayed quantity of the order 1. Purpose this Rule if the BBO is no longer the with Setter Priority, whichever is lower]. If same as the NBBO. Next, the Aggressing the size of the Aggressing Order is equal to The Exchange proposes to amend or larger than the size of the order with Setter Rules 7.36 and 7.37 relating to Setter Order will be allocated against orders Priority, the order with Setter Priority will Priority. ranked Priority 2—Displayed Orders on trade in full. If the size of the Aggressing parity by Participant. Any remaining Order is smaller than the size of the order Background quantity of an order with Setter Priority with Setter Priority, the order with Setter Rule 7.36(h) provides that Setter is eligible to participate in this parity Priority will trade with the remaining Priority will be assigned to an order allocation, consistent with the quantity of the Aggressing Order. An order with Setter Priority is eligible for allocation ranked Priority 2—Display Orders 4 with allocation wheel position of the Participant that entered the order with under this subparagraph if the BBO is no a display quantity of at least a round lot longer the same as the NBBO. if such order (i) establishes a new BBO Setter Priority. Rules 7.37(b)(1)(C)–(I) and (ii) either establishes a new NBBO describe how the remaining quantity of With this proposed change, after an or joins an Away Market NBBO an Aggressing Order would be allocated. Aggressing Order trades first with Market Orders, as described in Rule provided that such order will not be Proposed Rule Change eligible for Setter Priority if there is an 7.37(b)(1)(A), the remaining quantity of odd-lot sized order with Setter Priority The Exchange proposes two changes the Aggressing Order would trade with at that price.5 The Rule further provides to Setter Priority. First, the Exchange an order with Setter Priority that has a that only one order is eligible for Setter proposes that only those orders that set display price and working price equal to Priority at each Price. Rules 7.36(h)(1)– the NBBO (which would also set the the BBO. As with the current rule, an (3) describe how an order is evaluated BBO) would be eligible for Setter order with Setter Priority is eligible for for Setter Priority, how it retains Setter Priority. Orders that set the BBO and this priority allocation only if such Priority, and how it loses Setter Priority. join an existing NBBO would no longer order is the BBO when it is trading with Finally, Setter Priority is not available be eligible for Setter Priority. Second, the Aggressing Order. for any portion of an order that is the Exchange proposes that when an Under the proposal, instead of a 15% ranked Priority 3—Non-Display Orders order with Setter Priority is the allocation (rounded up to the next and is not available for allocations in an Exchange’s BBO, it would be eligible to round lot size, or the full quantity of the Auction. trade in full with the contra-side Aggressing Order), an order with Setter Rule 7.37(b)(1) specifies how an Aggressing Order. Priority would be eligible for up to Aggressing Order will be allocated To effect these changes, the Exchange 100% of the size of the Aggressing against contra-side orders at each price.6 proposes to change the first sentence of Order. Accordingly, with this proposed After first trading with resting orders Rule 7.36(h) to provide as follows change, an order with Setter Priority ranked Priority 1—Market Orders based (deleted text in brackets): would execute in the same manner that on time, an Aggressing Order will next Setter Priority will be assigned to an order a top-of-book, resting, displayed order trade with an order with Setter Priority. ranked Priority 2—Display Orders with a would trade on an exchange with a 8 As set forth in Rule 7.37(b)(1)(B), an display quantity of at least a round lot if such price-time priority model. order with Setter Priority that has a order [(i) establishes a new BBO and (ii) If the size of the Aggressing Order is either] establishes a new NBBO [or joins an display price and a working price equal equal to or larger than the size of the Away Market NBBO] provided that such order with Setter Priority, the order with order will not be eligible for Setter Priority 4 Rule 7.36(e) defines the priority categories to Setter Priority would trade in full. For if there is an odd-lot sized order with Setter example, if the order with Setter Priority which orders are assigned at each price point. Priority at that price. Priority 1—Market Orders are defined as is 400 shares and the remaining quantity unexecuted Market Orders that have priority over With this proposed rule change, the of the contra-side Aggressing Order is all other same-side orders with the same working price (Rule 7.36(e)(1)). Priority 2—Display Orders only orders that would be eligible for 400 shares or more, the order with are defined as non-marketable Limit Orders with a Setter Priority would be displayed Setter Priority would trade in full. If the display price and have second priority (Rule orders that establish a new NBBO. The size of the Aggressing Order is over 400 7.36(e)(2)). Priority 3—Non-Display Orders are Exchange does not believe that it needs shares, the remaining quantity of the defined as non-marketable Limit Orders for which the working price is not displayed, including to separately state that such an order Aggressing Order would be allocated as reserve interest of Reserve Orders, and have third also needs to establish a new BBO described in Rules 7.37(b)(1)(C)–(I). priority (Rule 7.36(e)(3)). because if an order establishes a new If the size of the Aggressing Order is 5 The term ‘‘BBO’’ means the best bid or offer on NBBO, it also establishes a new BBO.7 smaller than the size of the order with the Exchange. See Rule 1.1(c). The term ‘‘NBBO’’ The Exchange further proposes to Setter Priority, the order with Setter means the national best bid or offer. See Rule 1.1(q). An ‘‘Away Market’’ means any exchange, change Rule 7.37(b)(1)(B) as follows Priority would trade with the remaining alternative trading system, or other broker-dealer (1) with which the Exchange maintains an electronic 7 For example, if the BBO is $10.00 × $10.05 and 8 For example, on NYSE Arca, Inc. (‘‘NYSE linkage and (2) that provides instantaneous the NBBO is $10.01 × $10.05, to be eligible for Arca’’), an incoming marketable order will be responses to orders routed from the Exchange. Setter Priority, a bid would need a limit price of matched for execution against contra-side orders in Accordingly, an Away Market NBBO refers to an $10.02 or higher (an order with a limit price of the NYSE Arca Book according to the price-time NBBO that does not include the Exchange’s BBO. $10.05 or higher would either be routed pursuant priority ranking of the resting orders. See NYSE 6 An ‘‘Aggressing Order’’ is defined as a buy (sell) to Rule 7.37(c)(1), be assigned a display price of Arca Rule 7.37–E(a). Non-marketable Limit Orders order that is or becomes marketable against sell $10.04 pursuant to Rule 7.31(e)(1) or (2), or be with a displayed working price have second (buy) interest on the Exchange Book. See Rule displayed at its limit price pursuant to Rule priority on NYSE Arca. See NYSE Arca Rule 7.37– 7.36(a)(6). 7.31(e)(3)). E(e)(2).

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quantity of the Aggressing Order. For 2. Statutory Basis exchanges,13 31 alternative trading 14 example, if the order with Setter Priority The proposed rule change is systems, and numerous broker-dealer is 400 shares and the remaining quantity consistent with Section 6(b) of the internalizers and wholesalers, all of the contra-side Aggressing Order is Act,11 in general, and furthers the competing for order flow. Based on 300 shares, the order with Setter Priority objectives of Section 6(b)(5) of the Act,12 publicly-available information, no would trade with those 300 shares and in particular, in that it is designed to single exchange has more than 20% the Aggressing Order would be fully market share (whether including or prevent fraudulent and manipulative 15 executed. The remaining 100 shares of acts and practices, to promote just and excluding auction volume). More the order with Setter Priority would equitable principles of trade, to foster specifically, the Exchange’s market retain their Setter Priority and be cooperation and coordination with share of trading in Tapes A, B and C eligible to interact with the next contra- securities combined is less than 13%. In 9 persons engaged in facilitating side Aggressing Order. transactions in securities, and to remove this competitive market, Exchange With this revised allocation proposal, impediments to and perfect the member organizations are often if there is a remaining quantity of the mechanism of a free and open market members of multiple exchanges, and Aggressing Order, there would not be and a national market system. can direct liquidity-providing order any quantity left of the order with Setter The Exchange believes that the flow to more than one exchange. The Priority. Because there would not be any proposed rule change would remove proposed rule change would promote quantity of the order with Setter Priority impediments to and perfect the inter-market competition because it to trade on parity with other displayed mechanism of a free and open market would provide an additional incentive orders, the Exchange proposes to amend and a national market system because it for member organizations to improve Rule 7.37(b)(1)(C) to delete the second is designed to create an incentive to the best displayed bid or offer on the sentence of that Rule in full.10 improve the best displayed bid or offer Exchange, which would benefit all market participants. The Exchange The Exchange believes that these on the Exchange. The Exchange already provides an increased allocation further believes that the proposed rule proposed changes would provide an change would promote intra-market incentive for member organizations to opportunity for orders with Setter Priority. The Exchange believes that competition because Setter Priority improve the best bid or offer on the would be available on equal terms to Exchange. Specifically, the Exchange both narrowing which orders are eligible for Setter Priority and increasing any member organization that sets a believes that providing orders with new NBBO on the Exchange. Setter Priority an execution experience the execution opportunity for an order similar to that on price-time priority with Setter Priority would provide an C. Self-Regulatory Organization’s models, i.e., that such orders would be incentive for member organizations to Statement on Comments on the eligible to trade in full with the contra- route orders to the Exchange that would Proposed Rule Change Received From side Aggressing Order, would provide set a new NBBO, which would benefit Members, Participants, or Others an incentive for member organizations all market participants. The Exchange further believes that the No written comments were solicited to direct their liquidity-providing order or received with respect to the proposed flow to the Exchange. proposed rule change would remove impediments to and perfect the rule change. This proposed rule change is also mechanism of a free and open market III. Date of Effectiveness of the designed to operate seamlessly with the and a national market system because it Exchange’s parity allocation model. If Proposed Rule Change and Timing for is designed to provide an incentive for Commission Action there is no order with Setter Priority member organizations to route their eligible to trade, an Aggressing Order price-forming liquidity-providing orders Within 45 days of the date of would be allocated consistent with the to the Exchange by providing such publication of this notice in the Federal existing allocation model, as described orders with an execution opportunity Register, or such longer period up to 90 in Rule 7.37(b)(1)(C)–(I), without any that is similar to how such orders would days (i) as the Commission may changes. Likewise, after trading with an trade if they were the top-of-book, designate if it finds such longer period order with Setter Priority, any resting, displayed order on an exchange to be appropriate and publishes its remaining quantity of an Aggressing with a price-time priority model. reasons for so finding or (ii) as to which Order would be allocated consistent Accordingly, the proposed allocation of the self-regulatory organization with the existing allocation model, as an order with Setter Priority is not consents, the Commission will: described in Rule 7.37(b)(1)(C)–(I), novel, as it is how such a resting, (A) By order approve or disapprove without any changes. displayed order would trade if it were the proposed rule change, or Implementation top of book on an exchange with a price- (B) institute proceedings to determine time priority model. whether the proposed rule change Subject to approval of this proposed should be disapproved. rule change, the Exchange anticipates B. Self-Regulatory Organization’s Statement on Burden on Competition that it could implement the proposed 13 See Cboe Global Markets, U.S. Equities Market changes to Setter Priority in August The Exchange does not believe that Volume Summary, available at http:// 2020. The Exchange would announce the proposed rule change would impose markets.cboe.com/us/equities/market_share/. See the implementation date of this any burden on competition that is not generally https://www.sec.gov/fast-answers/ proposed rule change by Trader Update. divisionsmarketregmrexchangesshtml.html. necessary or appropriate in furtherance 14 See FINRA ATS Transparency Data, available of the purposes of the Act. The at https://otctransparency.finra.org/ 9 See Rule 7.36(h)(2)(A). Exchange operates in a highly otctransparency/AtsIssueData. A list of alternative 10 The second sentence of Rule 7.37(b)(1)(C) competitive market. Equity trading is trading systems registered with the Commission is currently provides: ‘‘Any remaining quantity of an currently dispersed across 13 available at https://www.sec.gov/foia/docs/ order with Setter Priority is eligible to participate atslist.htm. in this parity allocation, consistent with the 15 See Cboe Global Markets U.S. Equities Market allocation wheel position of the Participant that 11 15 U.S.C. 78f(b). Volume Summary, available at http:// entered the order with Setter Priority.’’ 12 15 U.S.C. 78f(b)(5). markets.cboe.com/us/equities/market_share/.

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IV. Solicitation of Comments For the Commission, by the Division of and basis for, the proposed rule change Trading and Markets, pursuant to delegated and discussed any comments it received Interested persons are invited to authority.16 on the proposed rule change. The text submit written data, views, and J. Matthew DeLesDernier, of those statements may be examined at arguments concerning the foregoing, Assistant Secretary. the places specified in Item IV below. including whether the proposed rule [FR Doc. 2020–14505 Filed 7–6–20; 8:45 am] The Exchange has prepared summaries, change is consistent with the Act. BILLING CODE 8011–01–P set forth in sections A, B, and C below, Comments may be submitted by any of of the most significant parts of such the following methods: statements. SECURITIES AND EXCHANGE Electronic Comments COMMISSION A. Self-Regulatory Organization’s Statement of the Purpose of, and the • Use the Commission’s internet [Release No. 34–89199; File No. SR–NYSE– Statutory Basis for, the Proposed Rule comment form (http://www.sec.gov/ 2020–56] Change rules/sro.shtml); or • Self-Regulatory Organizations; New 1. Purpose Send an email to rule-comments@ York Stock Exchange LLC; Notice of sec.gov. Please include File Number SR– Filing and Immediate Effectiveness of The Exchange proposes to extend the NYSE–2020–55 on the subject line. Proposed Rule Change To Extend the temporary period for specified Commentaries to Rules 7.35, 7.35A, Paper Comments Temporary Period for Specified Commentaries to Rules 7.35, 7.35A, 7.35B, and 7.35C; Supplementary • Send paper comments in triplicate 7.35B, and 7.35C Material .20 to Rule 76; and temporary to Secretary, Securities and Exchange rule relief to Rule 36.30, to end on the Commission, 100 F Street NE, June 30, 2020. earlier of a full reopening of the Trading 1 Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the Floor facilities to DMMs or after the Securities Exchange Act of 1934 (the Exchange closes on July 31, 2020. The All submissions should refer to File ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 current temporary period that these Number SR–NYSE–2020–55. This file notice is hereby given that on June 25, Rules are in effect ends on the earlier of number should be included on the 2020, New York Stock Exchange LLC a full reopening of the Trading Floor subject line if email is used. To help the (‘‘NYSE’’ or the ‘‘Exchange’’) filed with facilities to DMMs or after the Exchange Commission process and review your the Securities and Exchange closes on June 30, 2020. Commission (the ‘‘Commission’’) the comments more efficiently, please use Background only one method. The Commission will proposed rule change as described in post all comments on the Commission’s Items I and II below, which Items have To slow the spread of COVID–19 internet website (http://www.sec.gov/ been prepared by the self-regulatory through social-distancing measures, on rules/sro.shtml). Copies of the organization. The Commission is March 18, 2020, the CEO of the submission, all subsequent publishing this notice to solicit Exchange made a determination under amendments, all written statements comments on the proposed rule change Rule 7.1(c)(3) that, beginning March 23, with respect to the proposed rule from interested persons. 2020, the Trading Floor facilities located change that are filed with the I. Self-Regulatory Organization’s at 11 Wall Street in New York City Commission, and all written Statement of the Terms of Substance of would close and the Exchange would communications relating to the the Proposed Rule Change move, on a temporary basis, to fully 4 proposed rule change between the electronic trading. On May 14, 2020, The Exchange proposes to extend the the CEO of the Exchange made a Commission and any person, other than temporary period for specified those that may be withheld from the determination under Rule 7.1(c)(3) to Commentaries to Rules 7.35, 7.35A, reopen the Trading Floor on a limited public in accordance with the 7.35B, and 7.35C; Supplementary basis on May 26, 2020 to a subset of provisions of 5 U.S.C. 552, will be Material .20 to Rule 76; and temporary Floor brokers, subject to safety measures available for website viewing and rule relief in Rule 36.30, to end on the designed to prevent the spread of printing in the Commission’s Public earlier of a full reopening of the Trading COVID–19.5 On June 15, 2020, the CEO Reference Room, 100 F Street NE, Floor facilities to DMMs or after the of the Exchange made a determination Washington, DC 20549 on official Exchange closes on July 31, 2020. The under Rule 7.1(c)(3) to begin the second business days between the hours of proposed rule change is available on the phase of the Trading Floor reopening by 10:00 a.m. and 3:00 p.m. Copies of the Exchange’s website at www.nyse.com, at allowing DMMs to return on June 17, filing also will be available for the principal office of the Exchange, and 2020, subject to safety measures inspection and copying at the principal at the Commission’s Public Reference Room. office of the Exchange. All comments 4 Pursuant to Rule 7.1(e), the CEO notified the received will be posted without change. II. Self-Regulatory Organization’s Board of Directors of the Exchange of this Persons submitting comments are determination. The Exchange’s current rules Statement of the Purpose of, and establish how the Exchange will function fully- cautioned that we do not redact or edit Statutory Basis for, the Proposed Rule electronically. The CEO also closed the NYSE personal identifying information from Change American Options Trading Floor, which is located comment submissions. You should at the same 11 Wall Street facilities, and the NYSE In its filing with the Commission, the submit only information that you wish Arca Options Trading Floor, which is located in self-regulatory organization included San Francisco, CA. See Press Release, dated March to make available publicly. All statements concerning the purpose of, 18, 2020, available here: https://ir.theice.com/press/ submissions should refer to File press-releases/all-categories/2020/03-18-2020- 204202110. Number SR–NYSE–2020–55 and should 16 17 CFR 200.30–3(a)(12). 5 See Securities Exchange Act Release No. 88933 be submitted on or before July 28, 2020. 1 15 U.S.C. 78s(b)(1). (May 22, 2020), 85 FR 32059 (May 28, 2020) (SR– 2 15 U.S.C. 78a. NYSE–2020–47) (Notice of filing and immediate 3 17 CFR 240.19b–4. effectiveness of proposed rule change).

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designed to prevent the spread of • Commentaries .01 and .03 to Rule through the earlier of a full reopening of COVID–19.6 7.35B; the Trading Floor facilities to DMMs or • Commentaries .01, .02, .03, and .04 the close of the Exchange on July 31, Proposed Rule Change to Rule 7.35C; 2020, market participants will have The Exchange has modified its rules • Supplementary Material .20 to Rule advance notice of the temporary period to add Commentaries to Rules 7.35, 76; and during which the Commentaries to 7.35A, 7.35B, and 7.35C; Supplementary • Amendments to Rule 36.30. Rules 7.35, 7.35A, 7.35B, and 7.35C; Material to Rule 76; and rule relief in The Exchange is not proposing any Supplementary Material .20 to Rule 76, Rule 36.30 7 that are in effect until the substantive changes to these Rules. and amendments to Rule 36.30 will be earlier of a full reopening of the Trading 2. Statutory Basis in effect. Floor facilities to DMMs or after the Exchange closes on June 30, 2020.8 The proposed rule change is B. Self-Regulatory Organization’s The first and second phases of the consistent with Section 6(b) of the Statement on Burden on Competition reopening of the Trading Floor are Act,10 in general, and furthers the The Exchange does not believe that subject to safety measures designed to objectives of Section 6(b)(5) of the Act,11 the proposed rule change would impose prevent the spread of COVID–19. To in particular, in that it is designed to any burden on competition that is not meet these safety measures, Floor prevent fraudulent and manipulative necessary or appropriate in furtherance brokers and DMM units that have acts and practices, to promote just and of the purposes of the Act. The chosen to return to the Trading Floor are equitable principles of trade, to foster proposed rule change is not designed to operating with reduced staff. The cooperation and coordination with address any competitive issues but Exchange is therefore proposing to persons engaged in facilitating rather would extend the period during extend the following temporary rules transactions in securities, and to remove which Commentary .01 to Rule 7.35; until such time that there is a full impediments to and perfect the Commentaries .01, .02, .03, .04, 05, and reopening of the Trading Floor facilities mechanism of a free and open market .06 to Rule 7.35A; Commentaries .01 to DMMs: and a national market system. and .03 to Rule 7.35B; Commentaries • Commentary .01 to Rule 7.35; 9 To reduce the spread of COVID–19, • .01, .02, .03, and .04 to Rule 7.35C; Commentaries .01, .02, .03, .04, .05, the CEO of the Exchange made a Supplementary Material .20 to Rule 76; and .06 to Rule 7.35A; determination under Rule 7.1(c)(3) that and amendments to Rule 36.30 will be beginning March 23, 2020, the Trading in effect. These Commentaries are 6 See Securities Exchange Act Release No. 89086 Floor facilities located at 11 Wall Street (June 17, 2020) (SR–NYSE–2020–52) (Notice of intended to be in effect during the filing and immediate effectiveness of proposed rule in New York City would close and the temporary period while the Trading change). Exchange would move, on a temporary Floor has not yet been opened in full to 7 See Securities Exchange Act Release Nos. 88413 basis, to fully electronic trading. On DMMs and Floor brokers and currently (March 18, 2020), 85 FR 16713 (March 24, 2020) May 14, 2020, the CEO made a (SR–NYSE–2020–19) (amending Rule 7.35C to add expire on June 30, 2020. Because the Commentary .01); 88444 (March 20, 2020), 85 FR determination under Rule 7.1(c)(3) that, Trading Floor has not been opened in 17141 (March 26, 2020) (SR–NYSE–2020–22) beginning May 26, 2020, the Trading full to DMMs, the Exchange proposes to (amending Rules 7.35A to add Commentary .01, Floor would be partially reopened to extend the temporary period for these 7.35B to add Commentary .01, and 7.35C to add allow a subset of Floor brokers to return Commentary .02); 88488 (March 26, 2020), 85 FR temporary rules to end on the earlier of 18286 (April 1, 2020) (SR–NYSE–2020–23) to the Trading Floor. On June 15, 2020, a full reopening of the Trading Floor (amending Rule 7.35A to add Commentary .02); the CEO made a determination under facilities to DMMs or after the Exchange 88546 (April 2, 2020), 85 FR 19782 (April 8, 2020) Rule 7.1(c)(3) that, beginning June 17, closes on July 31, 2020. (SR–NYSE–2020–28) (amending Rule 7.35A to add 2020, DMM units may choose to return Commentary .03); 88562 (April 3, 2020), 85 FR C. Self-Regulatory Organization’s 20002 (April 9, 2020) (SR–NYSE–2020–29) a subset of staff to the Trading Floor. (amending Rule 7.35C to add Commentary .03); The Exchange believes that the Statement on Comments on the 88705 (April 21, 2020), 85 FR 23413 (April 27, proposed rule change would remove Proposed Rule Change Received From 2020) (SR–NYSE–2020–35) (amending Rule 7.35A impediments to and perfect the Members, Participants, or Others to add Commentary .04); 88725 (April 22, 2020), 85 FR 23583 (April 28, 2020) (SR–NYSE–2020–37) mechanism of a free and open market No written comments were solicited (amending Rule 7.35 to add Commentary .01); and a national market system because or received with respect to the proposed 88950 (May 26, 2020), 85 FR 33252 (June 1, 2020) the Trading Floor has not yet reopened rule change. (SR–NYSE–2020–48) (amending Rule 7.35A to add in full to DMMs or Floor brokers. Commentary .05); 89059 (June 12, 2020), 85 FR Accordingly, the Exchange believes that III. Date of Effectiveness of the 36911 (June 18, 2020) (SR–NYSE–2020–50) Proposed Rule Change and Timing for (amending Rule 7.35C to add Commentary .04); and the temporary rule changes in effect 89086 (June 17, 2020) (SR–NYSE–2020–52) pursuant to the Commentaries to Rules Commission Action (amending Rules 7.35A to add Commentary .06, The Exchange has filed the proposed 7.35B to add Commentary .03, 76 to add 7.35, 7.35A, 7.35B, and 7.35C; Supplementary Material 20, and Supplementary Supplementary Material .20 to Rule 76; rule change pursuant to Section Material .30 to Rule 36). and amendments to Rule 36.30, which 19(b)(3)(A)(iii) of the Act 12 and Rule 8 See Securities Exchange Act Release No. 88933 are intended to be in effect during the 19b–4(f)(6) thereunder.13 Because the (May 22, 2020), 85 FR 32059 (May 28, 2020) (SR– temporary period while the Trading foregoing proposed rule change does NYSE–2020–47) (Notice of filing and immediate effectiveness of proposed rule change to extend the Floor has not yet opened in full to not: (i) Significantly affect the temporary period for Commentaries to Rules 7.35, DMMs, should be extended until such protection of investors or the public 7.35A, 7.35B, and 7.35C to end on the earlier of a time that there is a full reopening of the interest; (ii) impose any significant full reopening of the Trading Floor facilities to burden on competition; and (iii) become DMMs or after the Exchange closes on June 30, Trading Floor facilities to DMMs. The 2020). Exchange is not proposing any operative for 30 days from the date on 9 Because DMMs are not obligated to return to a substantive changes to these Rules. which it was filed, or such shorter time Floor, an IPO Auction may still be conducted by a The Exchange believes that, by clearly as the Commission may designate, it has DMM remotely as provided for in Commentary .04 stating that this relief will be in effect become effective pursuant to Section to Rule 7.35A. If a DMM chooses to conduct an IPO Auction remotely, Floor brokers on the Trading Floor will not have access to IPO Auction 10 15 U.S.C. 78f(b). 12 15 U.S.C. 78s(b)(3)(A)(iii). imbalance information. 11 15 U.S.C. 78f(b)(5). 13 17 CFR 240.19b–4(f)(6).

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19(b)(3)(A)(iii) of the Act 14 and Electronic Comments SECURITIES AND EXCHANGE subparagraph (f)(6) of Rule 19b–4 • COMMISSION thereunder.15 Use the Commission’s internet comment form (http://www.sec.gov/ [Release No. 34–89197; File No. SR– A proposed rule change filed under rules/sro.shtml); or NYSEArca–2020–56] Rule 19b–4(f)(6) 16 normally does not • become operative prior to 30 days after Send an email to rule-comments@ Self-Regulatory Organizations; NYSE the date of the filing. However, pursuant sec.gov. Please include File Number SR– Arca, Inc.; Notice of Filing of Proposed to Rule 19b4(f)(6)(iii),17 the Commission NYSE–2020–56 on the subject line. Rule Change To Amend NYSE Arca Rules 5.2–E(j)(3), 5.2–E(j)(8), 5.5– may designate a shorter time if such Paper Comments action is consistent with the protection E(g)(2), 8.600–E and 8.900–E • of investors and the public interest. The Send paper comments in triplicate June 30, 2020. Exchange has asked the Commission to to: Secretary, Securities and Exchange Pursuant to Section 19(b)(1) 1 of the waive the 30-day operative delay so that Commission, 100 F Street NE, Securities Exchange Act of 1934 (the the proposal may take effect Washington, DC 20549–1090. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 immediately. The Exchange believes All submissions should refer to File notice is hereby given that, on June 18, that waiver of the operative delay is Number SR–NYSE–2020–56. This file 2020, NYSE Arca, Inc. (‘‘NYSE Arca’’ or consistent with the protection of number should be included on the the ‘‘Exchange’’) filed with the investors and the public interest subject line if email is used. To help the Securities and Exchange Commission because it will allow the rules discussed (the ‘‘Commission’’) a proposed rule Commission process and review your above to remain in effect during the change described in Items I and II comments more efficiently, please use temporary period during which the below, which Items have been prepared only one method. The Commission will Trading Floor has not yet been reopened by the Exchange. The Commission is post all comments on the Commission’s in full to DMMs. Accordingly, the publishing this notice to solicit internet website (http://www.sec.gov/ Commission hereby waives the 30-day comments on the proposed rule change rules/sro.shtml). Copies of the operative delay and designates the from interested persons. proposal operative upon filing.18 submission, all subsequent amendments, all written statements I. Self-Regulatory Organization’s At any time within 60 days of the with respect to the proposed rule Statement of the Terms of Substance of filing of such proposed rule change, the change that are filed with the the Proposed Rule Change Commission summarily may Commission, and all written The Exchange proposes to amend temporarily suspend such rule change if communications relating to the NYSE Arca Rules 5.2–E(j)(3) it appears to the Commission that such proposed rule change between the (Investment Company Units), 5.2–E(j)(8) action is necessary or appropriate in the Commission and any person, other than (Exchange-Traded Fund Shares), 5.5– public interest, for the protection of those that may be withheld from the E(g)(2), 8.600–E (Managed Fund Shares) investors, or otherwise in furtherance of public in accordance with the and 8.900–E (Managed Portfolio Shares) the purposes of the Act. If the provisions of 5 U.S.C. 552, will be to (1) remove the listing requirement Commission takes such action, the available for website viewing and that, following the initial twelve-month Commission shall institute proceedings printing in the Commission’s Public period after commencement of trading under Section 19(b)(2)(B) 19 of the Act to Reference Room, 100 F Street NE, of a series of Investment Company determine whether the proposed rule Units, Exchange-Traded Fund Shares, Washington, DC 20549 on official change should be approved or Managed Fund Shares, and Managed business days between the hours of disapproved. Portfolio Shares, respectively, on the 10:00 a.m. and 3:00 p.m. Copies of the Exchange that the applicable fund has at IV. Solicitation of Comments filing also will be available for least 50 beneficial holders, and (2) inspection and copying at the principal require that a series of Investment Interested persons are invited to office of the Exchange. All comments submit written data, views, and Company Units, Exchange-Traded Fund received will be posted without change. arguments concerning the foregoing, Shares, Managed Fund Shares, and Persons submitting comments are including whether the proposed rule Managed Portfolio Shares, respectively, cautioned that we do not redact or edit change is consistent with the Act. have at least one creation unit personal identifying information from Comments may be submitted by any of outstanding on an initial and continued comment submissions. You should the following methods: listing basis. The proposed change is submit only information that you wish available on the Exchange’s website at to make available publicly. All www.nyse.com, at the principal office of 14 15 U.S.C. 78s(b)(3)(A)(iii). 15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– submissions should refer to File the Exchange, and at the Commission’s 4(f)(6)(iii) requires a self-regulatory organization to Number SR–NYSE–2020–56 and should Public Reference Room. give the Commission written notice of its intent to be submitted on or before July 28, 2020. file the proposed rule change, along with a brief II. Self-Regulatory Organization’s description and text of the proposed rule change, For the Commission, by the Division of Statement of the Purpose of, and at least five business days prior to the date of filing Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule of the proposed rule change, or such shorter time authority.20 Change as designated by the Commission. The Exchange has fulfilled this requirement. J. Matthew DeLesDernier, In its filing with the Commission, the 16 17 CFR 240.19b–4(f)(6). Assistant Secretary. self-regulatory organization included 17 17 CFR 240.19b–4(f)(6)(iii). [FR Doc. 2020–14507 Filed 7–6–20; 8:45 am] statements concerning the purpose of, 18 For purposes only of accelerating the operative and basis for, the proposed rule change date of this proposal, the Commission has BILLING CODE 8011–01–P considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 1 15 U.S.C. 78s(b)(1). U.S.C. 78c(f). 2 15 U.S.C. 78a. 19 15 U.S.C. 78s(b)(2)(B). 20 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.

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and discussed any comments it received to mitigate the risks of manipulation such information is sufficient to support on the proposed rule change. The text and lack of liquidity that the an effective arbitrage process, of those statements may be examined at shareholder requirement was intended independent of any minimum the places specified in Item IV below. to address. The Exchange believes that shareholder requirement. The Exchange has prepared summaries, requiring at least one creation unit to be The Exchange notes that, as of June 9, set forth in sections A, B, and C below, outstanding at all times, together with 2020, the median creation unit size for of the most significant parts of such the enhanced disclosure requirements of a series of Fund Shares listed on the statements. Rule 6c–11, will facilitate an effective Exchange is 50,000 shares and the mean arbitrage mechanism that, for creation unit size is approximately A. Self-Regulatory Organization’s Investment Company Units, Managed 58,012 shares. As of June 9, 2020, of the Statement of the Purpose of, and the Fund Shares and Exchange-Traded approximately 1,368 series of Fund Statutory Basis for, the Proposed Rule Fund Shares, will provide investors Shares listed on the Exchange, the Change with sufficient transparency into the median number of creation units 1. Purpose holdings of the underlying portfolio and outstanding is approximately 71, The Exchange proposes to amend help ensure that the trading price in the approximately 214 series have fewer NYSE Arca Rules 5.2–E(j)(3) secondary market remains in line with than 10 creation units outstanding, and approximately 13 series have one (Investment Company Units), 5.5 the value per share of a fund’s portfolio. creation unit outstanding.11 E(g)(2), 5.2–E(j)(8) (Exchange-Traded For example, Rule 6c–11(c)(1)(vi), which requires additional disclosure if The arbitrage mechanism relies on the Fund Shares),4 8.600–E (Managed Fund the premium or discount is in excess of fact that Fund Shares can be created and Shares) and 8.900–E (Managed Portfolio 2% for more than seven consecutive redeemed and that Fund Shares are able Shares) (collectively, ‘‘Fund Shares’’) to days, as well as the related website to flow into the market when the price (1) remove the listing requirement that, disclosure and discussion of a series of Fund Shares is lower than following the initial twelve-month requirements,8 provides additional the net asset value per share of the period after commencement of trading portfolio. The resulting buying and of a series of Investment Company transparency to investors in the event that the trading value and the selling of Fund Shares, as well as the Units, Exchange-Traded Fund Shares, underlying portfolio components, Managed Fund Shares or Managed underlying portfolio deviate for an extended period of time, which could generally causes the market price and Portfolio Shares, respectively, on the the net asset value per share to align. Exchange, such series have at least 50 indicate an inefficient arbitrage 9 The functioning of the arbitrage beneficial holders, and (2) require that mechanism. With respect to Managed Portfolio mechanism helps to ensure that the a series of Fund Shares have at least one Shares, while these securities do not trading price in the secondary market is creation unit outstanding on an initial publicly disclose their portfolio at fair value. and continued listing basis.5 holdings daily and are not eligible to The existence of the creation and The Exchange believes that the rely on Rule 6c–11, the Commission, in redemption process, as well as the requirement that a series of Fund Shares approving exchange rules proposed requirement that at least one listed on the Exchange must have at accommodating listing and trading of creation unit is always outstanding, least 50 beneficial shareholders is no Managed Portfolio Shares, stated that would ensure that market participants longer necessary. Exchange-Traded the Verified Intraday Indicative Value are able to redeem Fund Shares and, Fund Shares are currently subject to the (‘‘VIIV’’) and other information required thereby, allow the arbitrage mechanism conditions of Rule 6c–11 under 1940 to be disseminated in connection with to function properly. The Exchange Act 6 and Investment Company Units such trading ensures transparency of believes, therefore, that such arbitrage and Managed Fund Shares will be key values and information for such mechanism would obviate the need for required to operate in compliance with 10 7 securities. The Exchange believes that a minimum shareholder requirement to Rule 6c–11 by December 23, 2020. The support a fair and orderly market in Exchange believes that the requirements 8 Rule 6c–11(c)(1)(vi) provides that ‘‘[i]f the Fund Shares. In addition, the of Rule 6c–11 and, in particular, the exchange-traded fund’s premium or discount is Exchange’s surveillance procedures for website disclosure requirements of Rule greater than 2% for more than seven consecutive Fund Shares and its ability to halt trading days, a statement that the exchange-traded 6c–11(c), together with the existing trading in Fund Shares in specified creation and redemption process, serve fund’s premium or discount, as applicable, was greater than 2% and a discussion of the factors that are reasonably believed to have materially of key values and information regarding the 4 A series of Exchange-Traded Fund Shares listed contributed to the premium or discount, which securities. The Commission notes that, for pursuant to NYSE Arca Rule 5.2–E (j)(8) is required must be maintained on the website for at least one continued listing of each series of Managed to be eligible to operate in reliance on Rule 6c–11 year thereafter.’’ Portfolio Shares, the VIIV will be widely under the Investment Company Act of 1940, as 9 The Commission discussed the importance of an disseminated by the Reporting Authority and/or amended (‘‘1940 Act’’). See NYSE Arca Rule 5.2– effective and efficient arbitrage mechanism in the one or more major market data vendors in one E (j)(8)(e)(1). ETF Adopting Release at 84 FR 57165 and 57209– second intervals during Regular Trading Hours, and 5 The term creation unit would have the same 57211 (‘‘Secondary Market Trading, Arbitrage and will be disseminated to all market participants at meaning as defined in Rule 6c–11(a)(1) (i.e., a ETF Liquidity)’’. the same time. Further, transactions in Managed specified number of exchange-traded fund shares 10 See Securities Exchange Act Release No. 87759 Portfolio Shares would be permitted only during that the exchange-traded fund will issue to (or (December 16, 2019) 84 FR 70223 (December 20, Regular Trading Hours, when one second VIIVs redeem from) an authorized participant in exchange 2019) (SR–CboeBZX–2019–047) (Notice of Filing of would be available. In addition, like all other for the deposit (or delivery) of a basket and a cash Amendment Nos. 4 and 5, and Order Granting registered management investment companies, each balancing amount if any). Accelerated Approval of a Proposed Rule Change, series of Managed Portfolio Shares would be 6 See Release No. 33–10695; IC–33646; File No. as Modified by Amendment Nos. 4 and 5, to Adopt required to publicly disclose its portfolio holdings S7–15–18 (Exchange-Traded Funds) (September 25, BZX Rule 14.11(k) to Permit the Listing and Trading information on a quarterly basis, within at least 60 2019), 84 FR 57162 (October 24, 2019) (‘‘ETF of Managed Portfolio Shares). In that order, the days following the end of every fiscal quarter.’’ Adopting Release’’). Commission stated: ‘‘Although the portfolio [footnotes omitted]. See also, Securities Exchange 7 As of December 23, 2020, the Commission is holdings of the Managed Portfolio Shares are not Act Release No. 88648 (April 15, 2020) 85 FR 22200 rescinding those portions of prior Commission ETF publicly disclosed on a daily basis, the Commission (April 21, 2020) (SR–NYSEArca–2020–32) (Notice exemptive orders that grant relief related to the believes that the proposed continued listing of Filing and Immediate Effectiveness of Proposed formation and operation of an ETF. See ETF standards and trading rules under proposed BZX Rule Change to Adopt NYSE Arca Rule 8.900–E). Adopting Release, note 39 and accompanying text. Rule 14.11(k) are adequate to ensure transparency 11 NYSE Arca internal data as of June 9, 2020.

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circumstances provide for additional arbitrage process, independent of any including whether the proposed rule investor protections by further minimum shareholder requirement. change is consistent with the Act. mitigating any abnormal trading that Reliance on the conditions of Rule Comments may be submitted by any of would affect the Fund Shares’ prices.12 6c–11 (for Investment Company Units, the following methods: Exchange-Traded Fund Shares and Electronic Comments 2. Statutory Basis Managed Fund Shares) or the VIIV and The Exchange believes that the other requirements applicable to • Use the Commission’s internet proposal is consistent with Section 6(b) Managed Portfolio Shares, together with comment form (http://www.sec.gov/ of the Act 13 in general and Section the existing creation and redemption rules/sro.shtml); or 6(b)(5) of the Act 14 in particular in that process, as well as the presence of at • Send an email to rule-comments@ it is designed to prevent fraudulent and least one creation unit, would serve to sec.gov. Please include File Number SR– manipulative acts and practices, to work together to mitigate the risks of NYSEArca–2020–56 on the subject line. promote just and equitable principles of manipulation and the lack of liquidity Paper Comments trade, to remove impediments to and that the shareholder requirement was • perfect the mechanism of a free and intended to address. By further aligning Send paper comments in triplicate open market and a national market the listing requirements with the to: Secretary, Securities and Exchange system, and, in general, to protect operational relationship between Commission, 100 F Street NE, investors and the public interest. investors, market participants and ETF Washington, DC 20549–1090. Exchange-Traded Fund Shares are issuers, the proposal facilitates greater All submissions should refer to File currently subject to the conditions of transparency for investors and issuers Number SR–NYSEArca–2020–56. This Rule 6c–11 under 1940 Act 15 and resulting in a more efficient market and file number should be included on the Investment Company Units and increased investor protections. subject line if email is used. To help the Managed Fund Shares will be required For the above reasons, the Exchange Commission process and review your to operate in compliance with Rule 6c– believes that the proposed rule change comments more efficiently, please use 11 by December 23, 2020.16 The is consistent with the requirements of only one method. The Commission will Exchange believes that the requirements Section 6(b)(5) of the Act. post all comments on the Commission’s of Rule 6c–11 and in particular the internet website (http://www.sec.gov/ B. Self-Regulatory Organization’s website disclosure requirements of Rule rules/sro.shtml). Copies of the Statement on Burden on Competition 6c–11(c), together with the existing submission, all subsequent creation and redemption process and The Exchange does not believe that amendments, all written statements proposed requirement that at least one the proposed rule change will impose with respect to the proposed rule creation unit is always outstanding, any burden on competition that is not change that are filed with the would serve to mitigate the risks of necessary or appropriate in furtherance Commission, and all written manipulation and the lack of liquidity of the purpose of the Act. The Exchange communications relating to the that the shareholder requirement was believes that the proposed rule change proposed rule change between the intended to address. More specifically, will facilitate growth in development of Commission and any person, other than the Exchange believes that requiring at new issues of Fund Shares, to the those that may be withheld from the least one creation unit to be outstanding benefit of investors and the marketplace. public in accordance with the provisions of 5 U.S.C. 552, will be at all times, together with the enhanced C. Self-Regulatory Organization’s available for website viewing and disclosure requirements of Rule 6c–11, Statement on Comments on the printing in the Commission’s Public would facilitate an effective arbitrage Proposed Rule Change Received From Reference Room, 100 F Street NE, mechanism that, for Investment Members, Participants, or Others Company Units, Managed Fund Shares Washington, DC 20549 on official and Exchange-Traded Fund Shares, No written comments were solicited business days between the hours of would provide investors with sufficient or received with respect to the proposed 10:00 a.m. and 3:00 p.m. Copies of the transparency into the holdings of the rule change. filing also will be available for underlying portfolio and help ensure III. Date of Effectiveness of the inspection and copying at the principal that the trading price in the secondary Proposed Rule Change and Timing for office of the Exchange. All comments market remains in line with the value Commission Action received will be posted without change. per share of a fund’s portfolio. Persons submitting comments are With respect to Managed Portfolio Within 45 days of the date of cautioned that we do not redact or edit Shares, the Commission, in approving publication of this notice in the Federal personal identifying information from exchange rules accommodating listing Register or such longer period up to 90 comment submissions. You should and trading of Managed Portfolio days (i) as the Commission may submit only information that you wish Shares, stated that the VIIV and other designate if it finds such longer period to make available publicly. All information required to be disseminated to be appropriate and publishes its submissions should refer to File in connection with such trading ensures reasons for so finding or (ii) as to which Number SR–NYSEArca–2020–56 and transparency of key values and the self-regulatory organization should be submitted on or before July consents, the Commission will: information for such securities.17 The 28, 2020. (A) by order approve or disapprove Exchange believes that such information the proposed rule change, or For the Commission, by the Division of is sufficient to support an effective (B) institute proceedings to determine Trading and Markets, pursuant to delegated authority.18 whether the proposed rule change 12 See, e.g., NYSE Arca Rule 7.18–E(d)(2); NYSE should be disapproved. J. Matthew DeLesDernier, Arca Rule 8.900–E(d)(2). Assistant Secretary. 13 15 U.S.C. 78f. IV. Solicitation of Comments 14 15 U.S.C. 78f(b)(5). [FR Doc. 2020–14494 Filed 7–6–20; 8:45 am] 15 See note 6, supra. Interested persons are invited to BILLING CODE 8011–01–P 16 See note 7, supra. submit written data, views, and 17 See note 10, supra. arguments concerning the foregoing, 18 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE Settlement Figures, (ii) codify FICC’s account at its FICC Settling Bank. COMMISSION discretion to exclude a FICC Settling Settlement is effected via the NSS.5 Bank’s balance from the FRB’s National [Release No. 34–89193; File No. SR–FICC– Current Process 2020–006] Settlement Service (‘‘NSS’’) file in certain circumstances, and (iii) make Each member must designate a FICC Self-Regulatory Organizations; Fixed certain technical and conforming Settling Bank to settle its funds-only Income Clearing Corporation; Notice of changes. (cash) obligations with FICC. Today, on Filing of Proposed Rule Change To each business day, as applicable, GSD II. Clearing Agency’s Statement of the Provide for a Passive and MBSD each calculates either a Purpose of, and Statutory Basis for, the Acknowledgement Process and Make Funds-Only Settlement Amount or Cash Proposed Rule Change Other Changes Balance figure, respectively, for each member, and reports to its members and June 30, 2020. In its filing with the Commission, the their respective FICC Settling Banks, a Pursuant to Section 19(b)(1) of the clearing agency included statements Net Funds-Only Settlement Figure 6 (for Securities Exchange Act of 1934 concerning the purpose of and basis for GSD) and either a Total Debit Cash (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 the proposed rule change and discussed Balance Figure 7 or a Total Credit Cash notice is hereby given that on June 19, any comments it received on the Balance Figure 8 (for MBSD) 2020, Fixed Income Clearing proposed rule change. The text of these (collectively, ‘‘Funds-Only (Cash) Corporation (‘‘FICC’’) filed with the statements may be examined at the Settlement Figures’’).9 The Depository Securities and Exchange Commission places specified in Item IV below. The Trust Company (‘‘DTC’’) acts as (‘‘Commission’’) the proposed rule clearing agency has prepared Settlement Agent (‘‘Settlement change as described in Items I, II and III summaries, set forth in sections A, B, Agent’’) 10 for FICC’s funds-only (cash) below, which Items have been prepared and C below, of the most significant settlement process. Once the FICC by the clearing agency. The Commission aspects of such statements. Settling Banks receive their Funds-Only (Cash) Settlement Figures from the is publishing this notice to solicit (A) Clearing Agency’s Statement of the Settlement Agent, the FICC Settling comments on the proposed rule change Purpose of, and Statutory Basis for, the Banks must submit either their (1) from interested persons. Proposed Rule Change acknowledgement that they will settle I. Clearing Agency’s Statement of the 1. Purpose their Funds-Only (Cash) Settlement Terms of Substance of the Proposed Figures with FICC or (2) refusal to settle Rule Change The purpose of this proposed rule such amounts on behalf of one or more The proposed rule change consists of change is to (i) provide for a passive of their respective members.11 This amendments to the FICC Government acknowledgement process whereby any Securities Division (‘‘GSD’’) Rulebook FICC Settling Bank that does not timely 5 GSD Rule 13, Section 5(i) and MBSD Rule 11, (‘‘GSD Rules’’) and the FICC Mortgage- acknowledge that it will settle its Section 9(i), supra note 3. Funds-Only (Cash) Settlement Figures 6 Net Funds-Only Settlement Figure means the Backed Securities Division (‘‘MBSD’’ net amount of the Funds-Only Settlement Amounts and together with GSD, each, a (as defined below) with FICC (i.e., of the Netting Members for which a Funds-Only ‘‘Division’’) Clearing Rules (‘‘MSBD acknowledge its intention to pay to or Settling Bank Member is acting. GSD Rule 1, supra Rules,’’ and together with the GSD collect from FICC), or notify the note 3. Rules, ‘‘Rules’’) 3 in order to (i) provide Settlement Agent (as defined below) of 7 Total Debit Cash Balance Figure means the sum of the Cash Balances which are debits of the for a passive acknowledgement process its refusal to settle for one or more Members for which a Cash Settling Bank Member whereby any settling bank that does not members for which it is the designated is acting. MSBD Rule 1, supra note 3. timely acknowledge that it will settle its FICC Settling Bank and has not 8 Total Credit Cash Balance Figures means the Funds-Only (Cash) Settlement Figures otherwise been in contact with the sum of the Cash Balances which are credits of the Members for which a Cash Settling Bank Member (as defined below) with FICC (i.e., Settlement Agent, would be deemed to is acting. MSBD Rule 1, supra note 3. acknowledge its intention to pay to or have acknowledged its Funds-Only 9 For GSD, Funds-Only Settlement Amounts collect from FICC), or notify the (Cash) Settlement Figures, (ii) codify reflect: (i) Changes in the value of securities when Settlement Agent (as defined below) of FICC’s discretion to exclude a FICC they are marked to market, (ii) cash adjustments related to securities trades, (iii) the pass-through of its refusal to settle for one or more Settling Bank’s balance from the NSS coupon payments for term repos or trade members 4 for which it is the designated file in certain circumstances, and (iii) obligations that cross a coupon date, and (iv) other Funds-Only Settling Bank or Cash make certain conforming technical and items, such as billing invoices. GSD Rule 13, Settling Bank (collectively, ‘‘FICC conforming changes. Section 1, supra note 3. For MBSD, Cash Settlement amounts reflect: (i) the TBA Transaction Settling Banks’’) and has not otherwise Background Adjustment Payment, (ii) Net Pool Transaction been in contact with the Settlement Adjustment Payment, (iii) principal and interest Agent, would be deemed to have Each Division provides a payments for failing net pool settlement obligations acknowledged its Funds-Only (Cash) (to the extent that they are not handled by the standardized, automated method for FedWire Securities Service Automated Claims settling funds-only and cash settlement Adjustment Process), and (iv) other items, such as 1 15 U.S.C. 78s(b)(1). obligations, respectively, between each Factor Update Adjustments and billing invoices. 2 17 CFR 240.19b–4. MBSD Rule 11, Section 7, supra note 3. 3 Capitalized terms not defined herein are defined Division and its respective members’ 10 DTC Settlement Operations act as the in the Rules, available at http://www.dtcc.com/ FICC Settling Banks. The funds-only Settlement Agent for GSD and MBSD. ‘‘Settlement legal/rules-and-procedures. settlement service of GSD and the cash Agent’’ means the bank or trust company that FICC 4 The use of ‘‘members’’ here refers to any settlement service of MBSD eliminate may, from time to time, designate to act as its agent participant that is required to appoint a Funds-Only manual processing and reduce costs by for purposes of interfacing with NSS for funds-only Settling Bank or Cash Settling Bank, which includes settlement pursuant to GSD Rule 13 (for GSD) and GSD Netting Members, GSD CCIT Members, GSD aggregating, for GSD, the funds-only for Cash Settlement pursuant to MBSD Rule 11. Sponsoring Members, and MBSD Clearing settlement payments and, for MSBD, the GSD Rule 1 and MBSD Rule 1, supra note 3. Members. References hereinafter to the term cash settlement payments due to or from 11 Currently, a FICC Settling Bank that settles only ‘‘members’’ shall be used for ease of reference. See a member, and then, automatically for itself may not refuse to settle for itself and, GSD Rule 13, Section 4(a) and MBSD Rule 3A, therefore, may opt out of the requirement to Section (a), supra note 3. debiting or crediting such member’s Continued

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acknowledgement or refusal submission remove the Funds-Only (Cash) cannot yet determine whether to occurs through a designated terminal Settlement Figure of the unresponsive acknowledge or refuse. In such a system.12 If all of the FICC Settling FICC Settling Bank from the NSS file in circumstance, passive acknowledgement Banks submit acknowledgements of order to allow the processing of the rest would not apply (as described below); their intent to settle, then the Settlement of the NSS file for the other FICC however, as it gets closer to the NSS Agent will submit the requisite file to Settling Banks that are part of the NSS processing time, FICC may need to the FRB for processing through the NSS. file. If FICC does not remove the Funds- remove the FICC Settling Bank’s Funds- If a FICC Settling Bank notifies the Only (Cash) Settlement Figure of the Only (Cash) Settlement Figure from the Settlement Agent that the FICC Settling unresponsive FICC Settling Bank from NSS file in order to allow funds-only Bank refuses to pay the Funds-Only the NSS file, then the NSS file cannot (cash) settlement to be completed for the (Cash) Settlement Figure for a member, be created and the funds-only (cash) other FICC Settling Banks that are part then FICC will exclude that member’s settlement cannot be completed for the of the NSS file and have affirmatively amount and the Settlement Agent will other FICC Settling Banks that are part acknowledged their figure. FICC is provide the FICC Settling Bank with a of the NSS file. As such, today, FICC proposing to codify its ability to remove new Funds-Only (Cash) Settlement may need to remove the Funds-Only the Funds-Only (Cash) Settlement Figure that no longer includes the (Cash) Settlement Figure of the Figure of the FICC Settling Bank from excluded member’s amount. The FICC unresponsive FICC Settling Bank from the NSS file. As FICC would be Settling Bank must then immediately the NSS file in order to submit the NSS codifying this current practice with this send a message to the Settlement Agent file and complete the funds-only (cash) proposed rule change, this proposed acknowledging the new amount.13 The settlement for the other FICC Settling rule change would not change the Settlement Agent will then submit the Banks that are part of the NSS file, thus current settlement process of FICC requisite file to the FRB for processing potentially delaying settlement of the Settling Banks that are excluded from through the NSS. NSS file. Such potential delay would the NSS file. This proposed change is The deadline for FICC Settling Banks arise from the time needed to remove discussed in Item 3(a)(ii) below. to acknowledge or refuse is 30 minutes the figure of the unresponsive FICC (i) Proposed Change To Introduce prior to the time at which debits and Settling Bank and then re-establish the Passive Acknowledgement Process for credits are executed via the NSS.14 If a NSS file. Moreover, with respect to the FICC Settling Banks FICC Settling Bank does not members who were using the particular acknowledge or refuse by this time, the FICC Settling Bank, FICC would need to Proposed Passive Acknowledgement Settlement Agent will use the most settle individually with those members Process recent contact information available to via the Fedwire Funds Service, which FICC proposes to establish an contact the FICC Settling Bank. If the also presents the possibility of a delay ‘‘Acknowledgement Cutoff Time’’ after Settlement Agent is unable to contact because of the time it might take to which FICC would apply the passive the FICC Settling Bank or does not complete this process individually with acknowledgement process if it is unable receive a response from the FICC each affected member. To date, FICC has to reach the FICC Settling Bank. Settling Bank as to the not had to perform the process of The Acknowledgement Cutoff Time acknowledgement or refusal, FICC removing a FICC Settling Bank from the would be defined as the later of: (i) 30 needs to determine whether to request NSS file. Minutes after the FICC Settling Banks an NSS extension while also The proposed passive have been notified that such payment is determining whether to remove the acknowledgement process that is due or (ii) 30 minutes prior to the times FICC Settling Bank’s Funds-Only (Cash) discussed in Item 3(a)(i) below is aimed established by FICC 16 for the execution Settlement Figure from the NSS file. at addressing the situation discussed of funds-only (cash) settlement debits Today, failure of a FICC Settling Bank above where a FICC Settling Bank is and credits via NSS. to timely respond to the Settlement unresponsive and cannot be reached. If a FICC Settling Bank does not Agent after posting of final settlement This would allow FICC to submit the submit either (1) an acknowledgement figures creates uncertainty with respect NSS file (through the Settlement Agent) that it will settle the Funds-Only (Cash) to timely completion of settlement at for NSS processing more timely, and Settlement Figure with FICC or (2) a FICC. This is because today, FICC is not thereby allow the funds-only (cash) refusal to pay the Funds-Only (Cash) permitted under the Rules to submit the settlement to be completed for the other Settlement Figure by the NSS file (through the Settlement Agent) FICC Settling Banks that are part of the ‘‘Acknowledgement Cutoff Time’’ and unless all FICC Settling Banks in the file NSS file. has not been in contact with the have acknowledged. FICC must Even with the implementation of the Settlement Agent, then the Settlement therefore determine whether it should proposed passive acknowledgement Agent would attempt to contact the process discussed in Item 3(a)(i) below, FICC Settling Bank. If the Settlement acknowledge its Funds-Only (Cash) Settlement FICC must retain the discretion to Agent is able to contact the FICC Figures. GSD Rule 13, Section 5(b) and MBSD Rule remove the Funds-Only (Cash) 11, Section 9, supra note 3. The passive Settling Bank and it notifies the acknowledgement proposal, explained in Item Settlement Figure of a FICC Settling Settlement Agent that the FICC Settling 3(a)(i) below, would not apply to such FICC Settling Bank from the NSS file.15 In other Bank cannot, at that time, submit its Banks that have chosen to opt out, as further words, currently, FICC may remove the acknowledgement or refusal to pay its explained below. FICC Settling Bank’s figure from the 12 GSD Rule 13, Section 5(b) and MBSD Rule 11, Funds-Only (Cash) Settlement Figure Section 9(b), supra note 3. NSS file in the situation where a FICC and that it needs more time, then the 13 GSD Rule 13, Section 5(c) and MBSD Rule 11, Settling Bank is unresponsive and FICC Settling Bank would not be Section 9(c), supra note 3. cannot be reached. Under the proposal, deemed to have acknowledged that it 14 For GSD, the NSS execution times are 10:00 the need for FICC to do so would arise will settle such Funds-Only (Cash) a.m. and 3:15 p.m.; for MBSD, these times are 10:00 in the event that a FICC Settling Bank a.m. and 2:45 p.m. GSD Schedule of Timeframes, Settlement Figure with FICC. However, supra note 3, and MBSD Processing Schedule and advises the Settlement Agent that it Timeframes, available at http://www.dtcc.com/ 16 These times are currently 10:00 a.m. and 3:15 clearing-services/ficc-mbsd/ficc-mbsd-user- 15 This practice is currently not codified in the p.m. for GSD, and 10:00 a.m. and 2:45 p.m. for documentation. GSD Rules and MBSD Rules. MBSD.

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if the FICC Settling Bank cannot be subsection (k) would apply with respect (cash) settlement to be completed for the reached, then the FICC Settling Bank to the new Net Funds-Only Settlement other FICC Settling Banks that are part would be deemed to have acknowledged Figures of the Funds-Only Settling Bank of the NSS file. As described above, as that it will settle such Funds-Only that sent refusal messages. Similar it gets closer to the payment deadline, (Cash) Settlement Figure with FICC. changes would be made to Section 9(c) FICC may need to remove the FICC The passive acknowledgement of MBSD Rule 11. Settling Bank’s Funds-Only (Cash) process described herein would also FICC proposes to amend Section 5 of Settlement Figure from the NSS file in apply in situations where a FICC GSD Rule 13 to add new subsection (i). order to allow funds-only (cash) Settling Bank is provided with a new Proposed subsection (i) would provide settlement to be completed for the other Funds-Only (Cash) Settlement Figure that the Settlement Agent uses the most FICC Settling Banks that are part of the after such FICC Settling Bank’s refusal recent contact information provided by NSS file. As FICC would be codifying its to pay the Funds-Only (Cash) the Funds-Only Settling Bank to the current practice with this proposed rule Settlement Figure for one or more Settlement Agent. Proposed subsection change, this proposed change would not members. (i) would also include a requirement change the current settlement process of FICC would also revise the Rules to that each Funds-Only Settling Bank FICC Settling Banks that are excluded state that each FICC Settling Bank must maintains up-to-date and accurate from the NSS file. ensure that it maintains accurate contact contact details with the Settlement This proposed change is reflected in details with the Settlement Agent so Agent on an ongoing basis. A similar the second paragraph of new that the Settlement Agent may contact subsection (i) would be added to subsections (l) of Section 5 of GSD Rule the FICC Settling Bank regarding this Section 9 of MBSD Rule 11. 13 and Section 9 of MBSD Rule 11. settlement process and any settlement FICC proposes to amend Section 5 of issues. GSD Rule 13 to add new subsection (l). (iii) Proposed Technical and Proposed subsection (l) would provide Conforming Changes Proposed Changes to GSD Rule 13, that the Settlement Agent would Section 5 and MBSD Rule 11, Section 9 FICC proposes to make certain attempt to contact the Funds-Only The proposed passive technical changes. Specifically, to Settling Bank if no acknowledgement or enhance clarity, FICC proposes to move acknowledgement process will require notice of refusal to settle on behalf of current subsection (d) in GSD Rule 13, changes to Section 5 of GSD Rule 13 and one or more Netting Members for which Section 5 to become proposed Section 9 of MBSD Rule 11. it is designated as the Funds-Only subsection (h) of GSD Rule 13, Section Specifically, FICC proposes to amend Settling Bank is received by the 5. In addition, FICC proposes to move Section 5(b) of GSD Rule 13 to replace Acknowledgement Cutoff Time. If (i) the current subsection (d) in MBSD Rule 11, ‘‘by the applicable deadline’’ with ‘‘By Settlement Agent is able to contact the Section 9 to become proposed the Acknowledgement Cutoff Time,’’ Funds-Only Settling Bank and (ii) the subsection (h) of MBSD Rule 11, Section and move this phrase to the start of the Funds-Only Settling Bank notifies the 9. first sentence. Section 5(b) would be Settlement Agent that it cannot, at that further amended to add a sentence time, acknowledge or refuse their Net FICC also proposes to make certain stating what the Acknowledgement Funds-Only Settlement Figure, then the conforming changes. For example, FICC Cutoff Time would be, that is the later Funds-Only Settling Bank will not be proposes to revise the subsection of (i) 30 minutes after the Funds-Only deemed to have acknowledged its Net numbers in GSD Rule 13, Section 5 and Settling Bank has been notified that Funds-Only Settlement Figure. If the MSBD Rule 11, Section 9 because such payment is due, or (ii) 30 minutes Funds-Only Settling Bank cannot be subsections were either proposed to be prior to the payment deadlines reached, the Funds-Only Settling Bank moved (as described in the preceding established by FICC. FICC also proposes will be deemed to have acknowledged paragraph) or added. As another to add a phrase at the end of Section its Net Funds-Only Settlement Figure. conforming change, FICC proposes to 5(b) that would apply to Funds-Only FICC would also state that this proposed revise GSD Rule 1 and MBSD Rule 1 to Settling Banks that settle solely for their subsection (l) would not apply to a add a new defined term own accounts to state that if they choose Funds-Only Settling Bank that settles (‘‘Acknowledgement Cutoff Time’’). to opt out of having to acknowledge solely for its own account and opts not FICC proposes to replace the first two their Funds-Only Settlement Amounts, to acknowledge its Net Funds-Only references to Corporation with new subsections (k) and (l) (described Settlement Figure. A similar subsection Settlement Agent in GSD Rule 13, below) would not apply to them.17 The (l) would be added to Section 9 of Section 5(c). Similarly, FICC proposes to same changes would be made to Section MBSD Rule 11. replace the reference to Corporation 9(b) of MBSD Rule 11. with Settlement Agent in MBSD Rule FICC proposes to amend Section 5(c) (ii) Proposed Change To Allow FICC To 11, Section 9(c). FICC believes these of GSD Rule 13 to delete the word Exclude FICC Settling Bank Balance proposed changes would enhance ‘‘immediately’’ and to state that new From NSS File accuracy and clarity when describing The proposed rule change would who the FICC Settling Banks must sent 17 Proposed subsections (k) and (l) describe the provide that if (1) passive a message to. In addition, in current proposed passive acknowledgement process. As described above, if a FICC Settling Bank that settles acknowledgement does not apply subsection (j) (which is proposed to solely for its own account opts to not to because the FICC Settling Bank has become subsection (m)) of Section 5 of acknowledge its own Funds-Only Settlement notified the Settlement Agent that it GSD Rule 13, FICC would replace Figure, the passive acknowledgement process cannot yet acknowledge or refuse its language regarding the ‘‘Corporation’s would not apply to such FICC Settling Banks because such FICC Settling Banks cannot refuse to Funds-Only (Cash) Settlement Figure Operations area’’ with the ‘‘Settlement settle for their own accounts. For operational and (2) the payment deadline Agent’’ and would use the newly convenience, FICC Settling Banks may choose to established by FICC is approaching, defined term ‘‘Acknowledgement Cutoff not acknowledge their own Funds-Only Settlement then FICC would have the ability to Time.’’ Similar changes would be made Figure because they cannot refuse to settle for their to current subsection (j) (which is own accounts. Therefore, proposed subsections (k) exclude the FICC Settling Bank’s Funds- and (l) would not apply to such FICC Settling Only (Cash) Settlement Figure from the proposed to become subsection (m)) of Banks. NSS file. This would allow funds-only Section 9 of MBSD Rule 11.

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FICC also proposes to change the passive acknowledgement process passive acknowledgement process reference from ‘‘DTC’’ to ‘‘the described in Item 3(a)(i) above is would not have an impact on the FICC Settlement Agent’’ in GSD Rule 13, designed to promote the prompt and Settling Banks’ current ability to timely proposed Section 5(n) and MBSD Rule accurate clearance and settlement of acknowledge their Funds-Only (Cash) 11, proposed Section 9(n) for securities transactions, consistent with Settlement Figures, as it is intended to consistency and clarity. Section 17A(b)(3)(F) of the Act.20 address situations where a FICC Settling FICC also believes that the proposal to 2. Statutory Basis Bank is not responding and cannot be codify FICC’s ability to exclude a FICC reached. Moreover, as described above, FICC believes this proposal is Settling Bank’s balance from the NSS FICC would continue to maintain consistent with the requirements of the file described in Item 3(a)(ii) above is flexibility and allow a FICC Settling Act, and the rules and regulations designed the promote the prompt and Bank to request extra time if the FICC thereunder applicable to a registered accurate clearance and settlement of Settling Bank cannot affirmatively clearing agency. Specifically, FICC securities transactions.21 If a FICC submit its (1) acknowledgement that it believes this proposal is consistent with Settling Bank notifies the Settlement 18 will settle its Funds-Only (Cash) Section 17A(b)(3)(F) of the Act. Agent that it cannot yet acknowledge or Settlement Figure with FICC or (2) Section 17A(b)(3)(F) of the Act refuse, FICC would not be able to refusal to pay its Funds-Only (Cash) requires, in part, that the Rules be submit the NSS file (through the designed to promote the prompt and Settlement Figure, as long as the Settlement Agent) with that FICC Settlement Agent is notified at or before accurate clearance and settlement of Settling Bank’s Funds-Only (Cash) 19 the Acknowledgement Cutoff Time. If a securities transactions. By way of Settlement Figure included. If the FICC background, the funds-only (cash) FICC Settling Bank notifies the Settling Bank does not ultimately Settlement Agent that the FICC Settling settlement process at FICC reflects respond with either an debits and credits of payments (such as Bank cannot, at that time, submit its acknowledgement or refusal, then FICC acknowledgement that it will settle its mark-to-market) that are associated with must have the ability to exclude such securities transactions that will Funds-Only (Cash) Settlement Figures FICC Settling Bank’s Funds-Only (Cash) with FICC or its refusal to pay its Funds- ultimately be subject to securities Settlement Figure from the NSS file. In settlement. FICC believes that failure by Only (Cash) Settlement Figures, then the this way, funds-only (cash) settlement FICC Settling Bank would not be a FICC Settling Bank to timely can be completed for all other members. acknowledge that it will settle its deemed to have acknowledged that it Therefore, FICC believes the proposed will settle such Funds-Only (Cash) Funds-Only (Cash) Settlement Figure changes described in Item 3(a)(ii) above with FICC or to refuse to pay its Funds- Settlement Figures with FICC. is designed to promote the prompt and Only (Cash) Settlement Figure creates Therefore, FICC believes that the accurate clearance and settlement of uncertainty with respect to the timely proposed passive acknowledgement securities transactions, consistent with process described in Item 3(a)(i) above completion of funds-only (cash) 22 Section 17A(b)(3)(F) of the Act. would not have any impact on settlement at FICC. FICC believes that FICC also believes that the proposed competition. the introduction of the proposed passive rule changes to make the technical and acknowledgement process described in conforming changes, as described in FICC also does not believe that the Item 3(a)(i) above would help promote Item 3(a)(iii) above, are designed to proposed changes to exclude a FICC the prompt and accurate clearance and promote the prompt and accurate Settling Bank’s balance from the NSS settlement of securities transactions in clearance and settlement of securities file, as described in Item 3(a)(ii) above, circumstances where a FICC Settling transactions by ensuring that the Rules would have any impact on Bank has not responded by the remain clear and accurate to members competition 25 because this proposal, if Acknowledgement Cutoff Time and and that members understand the funds- invoked, would require the affected cannot be reached by the Settlement only settlement service and cash FICC Settling Bank to send payment to Agent. In such circumstances, as settlement service. Having clear and FICC by wire, which is an alternate form described above, FICC would deem that accurate Rules would facilitate of payment already available to the FICC such FICC Settling Bank has members’ understanding of those rules Settling Banks. FICC believes that ready acknowledged that it will settle its and provide members with increased availability of a reasonable payment Funds-Only (Cash) Settlement Figures. predictability and certainty regarding alternative would result in the rights This would enable FICC to submit the their obligations. As such, FICC believes and obligations of the FICC Settling NSS file (through the Settlement Agent) these proposed changes would promote Banks not being adversely affected. As as is for processing in a timely manner, the prompt and accurate clearance and such, FICC does not believe that the and thereby enhance certainty with settlement of securities, consistent with proposed changes to exclude a FICC respect to the timely completion of Section 17A(b)(3)(F) of the Act.23 Settling Bank’s balance from the NSS settlement. Timely completion of such file, as described in Item 3(a)(ii) above, settlement at FICC for as many members (B) Clearing Agency’s Statement on would have any impact on competition. as possible promotes the prompt and Burden on Competition FICC also does not believe that the accurate clearance and settlement of FICC does not believe that the proposed rule changes to make the securities transactions as a general proposed rule changes described in Item technical and conforming changes matter, because the funds-only (cash) 3(a)(i) above to introduce the passive described in Item 3(a)(iii) above would settlement process at FICC involves acknowledgement process for FICC have an impact on competition.26 These debits and credits, such as the mark-to- Settling Banks would have any impact changes would simply provide market on securities transactions that on competition,24 because the proposed will ultimately be subject to securities additional clarity within the Rules and settlement. As such, FICC believes the 20 Id. not affect members’ rights and proposed change to introduce the 21 Id. obligations. 22 Id. 18 15 U.S.C. 78q–1(b)(3)(F). 23 Id. 25 Id. 19 Id. 24 15 U.S.C. 78q-1(b)(3)(I). 26 Id.

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(C) Clearing Agency’s Statement on those that may be withheld from the SUPPLEMENTARY INFORMATION: Notice is Comments on the Proposed Rule public in accordance with the hereby given that as a result of the Change Received From Members, provisions of 5 U.S.C. 552, will be Administrator’s disaster declaration, Participants, or Others available for website viewing and applications for disaster loans may be Written comments relating to the printing in the Commission’s Public filed at the address listed above or other proposed rule change have not been Reference Room, 100 F Street NE, locally announced locations. The following areas have been solicited or received. FICC will notify Washington, DC 20549 on official determined to be adversely affected by the Commission of any written business days between the hours of the disaster: comments received by FICC. 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for Primary Counties: Muskegon III. Date of Effectiveness of the inspection and copying at the principal Contiguous Counties: Proposed Rule Change, and Timing for office of FICC and on DTCC’s website MICHIGAN Kent, Newaygo, Oceana, Commission Action (http://dtcc.com/legal/sec-rule- Ottawa. filings.aspx). All comments received Within 45 days of the date of Percent publication of this notice in the Federal will be posted without change. Persons Register or within such longer period submitting comments are cautioned that The Interest Rates are: up to 90 days (i) as the Commission may we do not redact or edit personal For Physical Damage: designate if it finds such longer period identifying information from comment Homeowners With Credit to be appropriate and publishes its submissions. You should submit only Available Elsewhere ...... 2.500 reasons for so finding or (ii) as to which information that you wish to make Homeowners Without Credit the self-regulatory organization available publicly. All submissions Available Elsewhere ...... 1.250 should refer to File Number SR–FICC– Businesses With Credit Avail- consents, the Commission will: able Elsewhere ...... 6.000 (A) By order approve or disapprove 2020–006 and should be submitted on or before July 28, 2020. Businesses Without Credit such proposed rule change, or Available Elsewhere ...... 3.000 (B) institute proceedings to determine For the Commission, by the Division of Non-Profit Organizations With whether the proposed rule change Trading and Markets, pursuant to delegated Credit Available Elsewhere 2.750 should be disapproved. authority.27 Non-Profit Organizations With- J. Matthew DeLesDernier, out Credit Available Else- IV. Solicitation of Comments where ...... 2.750 Assistant Secretary. For Economic Injury: Interested persons are invited to [FR Doc. 2020–14491 Filed 7–6–20; 8:45 am] Businesses & Small Agricul- submit written data, views and BILLING CODE 8011–01–P arguments concerning the foregoing, tural Cooperatives Without Credit Available Elsewhere 3.000 including whether the proposed rule Non-Profit Organizations With- change is consistent with the Act. SMALL BUSINESS ADMINISTRATION out Credit Available Else- Comments may be submitted by any of where ...... 2.750 the following methods: [Disaster Declaration #16495 and #16496; Michigan Disaster Number MI–00085] The number assigned to this disaster Electronic Comments for physical damage is 16495 6 and for • Use the Commission’s internet Administrative Declaration of a economic injury is 16496 0. comment form (http://www.sec.gov/ Disaster for the State of Michigan The State which received an EIDL rules/sro.shtml); or Declaration # is Michigan. AGENCY: • Send an email to rule-comments@ U.S. Small Business Administration. (Catalog of Federal Domestic Assistance sec.gov. Please include File Number SR– Number 59008) FICC–2020–006 on the subject line. ACTION: Notice. Jovita Carranza, Paper Comments SUMMARY: This is a notice of an Administrator. Administrative declaration of a disaster • Send paper comments in triplicate [FR Doc. 2020–14592 Filed 7–6–20; 8:45 am] for the State of Michigan dated 06/29/ to Secretary, Securities and Exchange BILLING CODE 8026–03–P Commission, 100 F Street NE, 2020. Washington, DC 20549. Incident: Severe Storms and Flooding. Incident Period: 05/18/2020. All submissions should refer to File SMALL BUSINESS ADMINISTRATION DATES: Issued on 06/29/2020. Number SR–FICC–2020–006. This file [Disaster Declaration #16423 and #16424; number should be included on the Physical Loan Application Deadline Mississippi Disaster Number MS–00125] subject line if email is used. To help the Date: 08/28/2020. Commission process and review your Economic Injury (EIDL) Loan Presidential Declaration Amendment of comments more efficiently, please use Application Deadline Date: 03/29/2021. a Major Disaster for Public Assistance only one method. The Commission will ADDRESSES: Submit completed loan Only for the State of Mississippi applications to: U.S. Small Business post all comments on the Commission’s AGENCY: U.S. Small Business Administration, Processing and internet website (http://www.sec.gov/ Administration. rules/sro.shtml). Copies of the Disbursement Center, 14925 Kingsport ACTION: Amendment 2. submission, all subsequent Road, Fort Worth, TX 76155. amendments, all written statements FOR FURTHER INFORMATION CONTACT: A. SUMMARY: This is an amendment of the with respect to the proposed rule Escobar, Office of Disaster Assistance, Presidential declaration of a major change that are filed with the U.S. Small Business Administration, disaster for Public Assistance Only for Commission, and all written 409 3rd Street SW, Suite 6050, the State of MISSISSIPPI (FEMA–4538– communications relating to the Washington, DC 20416, (202) 205–6734. DR), dated 04/23/2020. proposed rule change between the Incident: Severe Storms, Flooding, Commission and any person, other than 27 17 CFR 200.30–3(a)(12). and Mudslides.

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Incident Period: 02/10/2020 through Disbursement Center, 14925 Kingsport FOR FURTHER INFORMATION CONTACT: 02/18/2020. Road, Fort Worth, TX 76155. Taylor Beaumont, Acting Chief, DATES: Issued on 06/25/2020. FOR FURTHER INFORMATION CONTACT: A. Legislation and Regulations Division, Physical Loan Application Deadline Escobar, Office of Disaster Assistance, Legal Affairs, Visa Services, Bureau of Date: 06/22/2020. U.S. Small Business Administration, Consular Affairs at PRA_ Economic Injury (EIDL) Loan 409 3rd Street SW, Suite 6050, [email protected] or over Application Deadline Date: 01/25/2021. Washington, DC 20416, (202) 205–6734. telephone at (202) 485–8910. ADDRESSES: Submit completed loan SUPPLEMENTARY INFORMATION: The notice SUPPLEMENTARY INFORMATION: applications to: U.S. Small Business of the President’s major disaster • Title of Information Collection: Administration, Processing and declaration for Private Non-Profit Electronic Medical Examination for Visa Disbursement Center, 14925 Kingsport organizations in the State of North Applicant. Road, Fort Worth, TX 76155. Carolina, dated 05/08/2020, is hereby • OMB Control Number: 1405–0230. • FOR FURTHER INFORMATION CONTACT: A. amended to include the following areas Type of Request: Revision of a as adversely affected by the disaster. Currently Approved Collection. Escobar, Office of Disaster Assistance, • U.S. Small Business Administration, Primary Counties: Gaston. Originating Office: CA/VO/L/R. • Form Number: DS–7994. 409 3rd Street SW, Suite 6050, All other information in the original • Washington, DC 20416, (202) 205–6734. declaration remains unchanged. Respondents: Panel Physician/Visa and Refugee Applicants. SUPPLEMENTARY INFORMATION: The notice (Catalog of Federal Domestic Assistance • Estimated Number of Respondents: of the President’s major disaster Number 59008) 580,330. declaration for Private Non-Profit Cynthia Pitts, • Estimated Number of Responses: organizations in the State of 580,330. MISSISSIPPI, dated 04/23/2020, is Acting Associate Administrator for Disaster Assistance. • Average Time per Response: 1 hour. hereby amended to include the • Total Estimated Burden Time: following areas as adversely affected by [FR Doc. 2020–14560 Filed 7–6–20; 8:45 am] BILLING CODE 8026–03–P 580,330 annual hours. the disaster. • Frequency: Once per respondent.1 Primary Counties: Issaquena, Marion, • Obligation to Respond: Required to Sharkey. DEPARTMENT OF STATE Obtain or Retain a Benefit. All other information in the original We are soliciting public comments to declaration remains unchanged. [Public Notice 11149] permit the Department to: (Catalog of Federal Domestic Assistance • Evaluate whether the proposed Number 59008) 60-Day Notice of Proposed Information information collection is necessary for Collection: Electronic Medical Cynthia Pitts, the proper functions of the Department. Examination for Visa or Applicant • Acting Associate Administrator for Disaster Evaluate the accuracy of our estimate of the time and cost burden for Assistance. ACTION: Notice of request for public this proposed collection, including the [FR Doc. 2020–14557 Filed 7–6–20; 8:45 am] comment. validity of the methodology and BILLING CODE 8026–03–P SUMMARY: The Department of State assumptions used. (‘‘Department’’) is seeking Office of • Enhance the quality, utility, and SMALL BUSINESS ADMINISTRATION Management and Budget (‘‘OMB’’) clarity of the information to be approval for the information collection collected. [Disaster Declaration #16446 and #16447; described below. In accordance with the • Minimize the reporting burden on North Carolina Disaster Number NC–00116] Paperwork Reduction Act of 1995, we those who are to respond, including the Presidential Declaration Amendment of are requesting comments on this use of automated collection techniques a Major Disaster for Public Assistance collection from all interested or other forms of information Only for the State of North Carolina individuals and organizations. The technology. purpose of this notice is to allow 60 Please note that comments submitted AGENCY: U.S. Small Business days for public comment preceding in response to this Notice are public Administration. submission of the collection to OMB. record. Before including any detailed ACTION: Amendment 1. DATES: The Department will accept personal information, you should be comments from the public up to aware that your comments as submitted, SUMMARY: This is an amendment of the September 8, 2020. including your personal information, Presidential declaration of a major will be available for public review. ADDRESSES: You may submit comments disaster for Public Assistance Only for by any of the following methods: Abstract of Proposed Collection the State of North Carolina (FEMA– • Web: Persons with access to the This electronic collection records 4543–DR), dated 05/08/2020. internet may comment on this notice by medical information necessary to Incident: Severe Storms, Tornadoes, going to www.Regulations.gov. You can determine whether visa applicants have and Flooding. search for the document by entering medical conditions affecting the Incident Period: 02/06/2020 through ‘‘Docket Number: DOS–2020–0028’’ in applicant’s eligibility for a visa. 02/19/2020. the Search field. Then click the DATES: Issued on 06/26/2020. ‘‘Comment Now’’ button and complete Physical Loan Application Deadline 1 The majority of applicants only need to the comment form. complete medical examinations, and therefore these Date: 07/07/2020. • Email: PRA_BurdenComments@ forms once. However, medical exams are valid for Economic Injury (EIDL) Loan state.gov. a period of three to six months from the Application Deadline Date: 02/08/2021. You must include the DS form examination date. Therefore, if an applicant’s ADDRESSES: medical examination expires prior to travel, then Submit completed loan number (if applicable), information the applicant may need to undergo a new medical applications to: U.S. Small Business collection title, and the OMB control examination and therefore complete the forms more Administration, Processing and number in any correspondence. than once.

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Methodology • Email: PRA_BurdenComments@ Abstract of Proposed Collection state.gov. Approved panel physicians will be Forms for this collection are granted access to an eMedical system by You must include the DS form number (if applicable), information completed by panel physicians for the Department to conduct medical refugees, aliens seeking immigrant visas, examinations for visa eligibility collection title, and the OMB control number in any correspondence. and for some aliens seeking determinations. The pilot program for nonimmigrant visas to the United FOR FURTHER INFORMATION CONTACT: the eMedical system launched in States. The collection records medical Taylor Beaumont, Acting Chief, September 2018. The eMedical system information necessary to determine Legislation and Regulations Division, was rolled out in six waves, the first whether refugees or visa applicants have Legal Affairs, Visa Services, Bureau of wave of the rollout was in July 2019, medical conditions affecting the Consular Affairs, at PRA_ and the final wave was in May 2020. applicant’s eligibility for a visa, or [email protected] or over Immigrant visa applicants with a affecting the public health and requiring telephone at (202) 485–8910. completed and submitted DS–260, treatment. Application for Immigrant Visa and SUPPLEMENTARY INFORMATION: Alien Registration will have their • Title of Information Collection: Methodology Medical Examination for Visa or medical exam results submitted to the A panel physician, contracted by the Refugee Applicant. Department via the eMedical system. consular post, in accordance with • OMB Control Number: 1405–0113. The panel physician will input the instructions issued by the Centers for • Type of Request: Revision of a exam information into the eMedical Disease Control and Prevention Currently Approved Collection. portal and it will be transmitted to the (‘‘CDC’’), performs the medical Department for visa adjudication and • Originating Office: CA/VO/L/R. • Form Number: Forms DS–2054, examination of the applicant and retained in the Department’s systems. completes the forms. Upon completing The information will also be transmitted DS–3030, DS–3025, DS–3026. • Respondents: Visa and Refugee the applicant’s medical examination, to the Centers for Disease Control and the examining panel physician submits Prevention’s (‘‘CDC’’) systems. Applicants. • Estimated Number of Respondents: a report to the consular officer on the Edward J. Ramotowski, 110,412. DS–2054, Medical Examination for Deputy Assistant Secretary, Bureau of • Estimated Number of Responses: Immigrant or Refugee Applicant, and Consular Affairs, Department of State. 110,412. associated worksheets. • [FR Doc. 2020–14584 Filed 7–6–20; 8:45 am] Average Time per Response: 1 hour. Edward J. Ramotowski, • BILLING CODE 4710–06–P Total Estimated Burden Time: Deputy Assistant Secretary, Bureau of 110,412 annual hours. Consular Affairs, Department of State. • 1 Frequency: Once per respondent. [FR Doc. 2020–14583 Filed 7–6–20; 8:45 am] DEPARTMENT OF STATE • Obligation to respond: Required to BILLING CODE 4710–06–P Obtain or Retain a Benefit. [Public Notice 11148] We are soliciting public comments to 60-Day Notice of Proposed Information permit the Department to: • Collection: Medical Examination for Evaluate whether the proposed SURFACE TRANSPORTATION BOARD Visa or Refugee Applicant information collection is necessary for the proper functions of the Department. Senior Executive Service Performance ACTION: Notice of request for public • Evaluate the accuracy of our Review Board (PRB) and Executive comment. estimate of the time and cost burden of Resources Board (ERB) Membership this proposed collection, including the SUMMARY: The Department of State is validity of the methodology and AGENCY: Surface Transportation Board. seeking Office of Management and assumptions used. ACTION: Notice of Senior Executive Budget (OMB) approval for the • Enhance the quality, utility, and Service Performance Review Board information collections described clarity of the information to be (PRB) and Executive Resources Board below. In accordance with the collected. (ERB) Membership. Paperwork Reduction Act of 1995, we • Minimize the reporting burden on are requesting comments on this those who are to respond, including the SUMMARY: Effective immediately, the collection from all interested use of automated collection techniques membership of the PRB and ERB is as individuals and organizations. The or other forms of information follows: purpose of this notice is to allow 60 technology. days for public comment preceding Please note that comments submitted Performance Review Board submission of the collection to OMB. in response to this Notice are public William Brennan, Chairman DATES: The Department will accept record. Before including any detailed comments from the public up to personal information, you should be Rachel D. Campbell, Member September 8, 2020. aware that your comments as submitted, Lucille Marvin, Member ADDRESSES: You may submit comments including your personal information, Craig M. Keats, Alternate Member will be available for public review by any of the following methods: Executive Resources Board • Web: Persons with access to the 1 The majority of applicants only need to Allison Davis, Chairman internet may comment on this notice by complete medical examinations, and therefore these going to www.Regulations.gov. You can forms once. However, medical exams are valid for Rachel Campbell, Member search for the document by entering a period of three to six months from the Lucille Marvin, Member ‘‘Docket Number: DOS–2020–0027’’ in examination date. Therefore, if an applicant’s medical examination expires prior to travel, then Craig M. Keats, Alternate Member the Search field. Then click the the applicant may need to undergo a new medical ‘‘Comment Now’’ button and complete examination and therefore complete the forms more FOR FURTHER INFORMATION CONTACT: If the comment form. than once. you have any questions, please contact:

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Teresa Schlee at [email protected] Dated: June 26, 2020. information collection, including (a) or 202–245–0340. Joseph J. Hoagland, Whether the proposed collection of Vice President, Innovation and Research, Kenyatta Clay, information is necessary for FAA’s Tennessee Valley Authority. performance; (b) the accuracy of the Clearance Clerk. [FR Doc. 2020–14466 Filed 7–6–20; 8:45 am] estimated burden; (c) ways for FAA to [FR Doc. 2020–14539 Filed 7–6–20; 8:45 am] BILLING CODE 8120–08–P enhance the quality, utility and clarity BILLING CODE 4915–01–P of the information collection; and (d) ways that the burden could be DEPARTMENT OF TRANSPORTATION minimized without reducing the quality TENNESSEE VALLEY AUTHORITY of the collected information. The agency Federal Aviation Administration will summarize and/or include your Webinar Meeting of the Regional [Docket No. 2020–0420] comments in the request for OMB’s Resource Stewardship Council clearance of this information collection. Agency Information Collection OMB Control Number: 2120–0754. AGENCY: Tennessee Valley Authority Activities: Requests for Comments; (TVA). Clearance of Renewed Approval of Title: National Flight Data Center Web ACTION: Notice of meeting. Information Collection: National Flight Portal. Data Center Web Portal Form Numbers: AD1–ADCP, AD3– SUMMARY: The TVA Regional Resource ACC. Stewardship Council (RRSC) will hold a AGENCY: Federal Aviation virtual meeting on Tuesday, July 21, Administration (FAA), Transportation Type of Review: Renewal of an 2020, to consider various matters. The (DOT). information collection. RRSC was established to advise TVA on ACTION: Notice and request for Background: The Federal Register its natural resources and stewardship comments. Notice with a 60-day comment period activities and the priority to be placed soliciting comments on the following SUMMARY: In accordance with the among competing objectives and values. Paperwork Reduction Act of 1995, FAA collection of information was published Notice of this meeting is given under the invites public comments about our on April 27, 2020 (2020–08836). 49 Federal Advisory Committee Act intention to request the Office of U.S.C. 40103, ‘‘Sovereignty and Use of (FACA). Management and Budget (OMB) Airspace,’’ authorizes and directs the DATES: The meeting will be held approval to renew an information FAA to develop plans and policy for the Tuesday, July 21, 2020, and run from collection. The Federal Register Notice use of the navigable airspace. The 9:30 a.m. to 3:00 p.m., EDT. An hour with a 60-day comment period soliciting National Flight Data Center (NFDC) is break from 12:00 p.m.–1:00 p.m., EDT is comments on the following collection of the authoritative government source for scheduled. information was published on April 27, collecting, validating, storing, ADDRESSES: This is a virtual meeting 2020. The collection involves maintaining, and disseminating only. An individual requiring special aeronautical information detailing the aeronautical data concerning the United accommodation for a disability should physical description and operational States and its territories to support real- let the contact below know at least a status of all components of the National time aviation activities. The information week in advance. Airspace System (NAS). The collected ensures the safe and efficient information to be collected will be used navigation of the national airspace. The FOR FURTHER INFORMATION CONTACT: to update government, military, and Cathy Coffey, 865–632–4494, ccoffey@ information collected is maintained in private aeronautical databases, charts, tva.gov. the National Airspace System Resources publications, and flight management (NASR) database which serves as the SUPPLEMENTARY INFORMATION: The systems. official repository for NAS data and is meeting agenda includes the following DATES: Written comments should be provided to government, military, and items: submitted by August 6, 2020. private producers of aeronautical charts, 1. Introductions and webinar logistics ADDRESSES: Interested persons are publications, and flight management 2. Pollinator study invited to submit written comments on systems. Information will be collected 3. Environmental Policy the proposed information collection to via digital forms. 4. Update on Asian Carp the Office of Information and Regulatory Respondents: Approximately 5,092 5. Public Comments Affairs, Office of Management and representatives of U.S. public airports. 6. Council Discussion and Advice Budget. Comments should be addressed Average of 6,709 responses annually. 7. Natural Resources Plan Update to the attention of the Desk Officer, Frequency: Information to be Department of Transportation/FAA, and The meeting is open to the public. collected on occasion. Please register in advance at: https:// sent via electronic mail to oira_ bit.ly/2NowQde. Public comments will [email protected], or faxed to Estimated Average Burden per be accepted that afternoon for 30 (202) 395–6974, or mailed to the Office Response: 20 minutes. minutes at 1:00 p.m., EDT. In order to of Information and Regulatory Affairs, Estimated Total Annual Burden: make oral comments, the public must Office of Management and Budget, 2,236 hours. pre-register by 5:00 p.m. on Monday, Docket Library, Room 10102, 725 17th Issued in Washington, DC, on July 1, 2020. July 20, 2020, by emailing ccoffey@ Street NW, Washington, DC 20503. tva.gov. Due to time limitations, FOR FURTHER INFORMATION CONTACT: John John L. Graybill, speakers will be given two minutes to Graybill by email at: John.Graybill@ Aeronautical Information Specialist, Data address the council. Written comments faa.gov; phone: 202–267–3742. Systems Team, Aeronautical Information may be sent to the RRSC at any time SUPPLEMENTARY INFORMATION: Services, AJV–A35. through links on TVA’s website at Public Comments Invited: You are [FR Doc. 2020–14542 Filed 7–6–20; 8:45 am] www.tva.com/rrsc. asked to comment on any aspect of this BILLING CODE 4910–13–P

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DEPARTMENT OF TRANSPORTATION except Federal holidays. To be sure fields required within the ELD Outputs, someone is there to help you, please call as listed in Section 4.8 of appendix A Federal Motor Carrier Safety (202) 366–9317 or (202) 366–9826 be excluded in the RODS files accessed Administration before visiting Docket Operations. through the in-cab ELD unit. The files generated by the current ELDs used by [Docket No. FMCSA–2020–0114] II. Legal Basis Werner include all the required Hours of Service of Drivers: FMCSA has authority under 49 U.S.C. information. The files generated by the Application for Exemption; Werner 31315(b) to grant exemptions from Platform Science ELDs that Werner Enterprises certain parts of the Federal Motor began using in 2020 include all the Carrier Safety Regulations (FMCSRs). required information. Due to AGENCY: Federal Motor Carrier Safety FMCSA must publish a notice of each incompatibilities between Werner’s Administration (FMCSA), exemption request in the Federal current ELD supplier and its new Transportation (DOT). Register (49 CFR 381.315(a)). The supplier, 5 data elements will not be ACTION: Notice of final disposition; grant Agency must provide the public an available on the ELD during the of exemption. opportunity to inspect the information transition, which will last no more than relevant to the application, including the first 8 days each driver uses the new SUMMARY: The Federal Motor Carrier any safety analyses that have been ELD system. The affected fields in Safety Administration (FMCSA) conducted. The Agency must also section 4.8 of appendix A are as follows: announces its decision to grant Werner provide an opportunity for public • Enterprises’ (Werner) application for an comment on the request. Co-driver information; exemption from the requirement that The Agency reviews safety analyses • Odometer Elapsed—vehicle elapsed certain data fields be included in and public comments submitted, and miles/kilometers in given ignition electronic records of duty status (RODS) determines whether granting the power on cycle; files presented by electronic logging exemption would likely achieve a level • Engine Hours Elapsed—elapsed devices (ELDs). Due to incompatibility of safety equivalent to, or greater than, time of engine operation in the given issues between Werner’s current ELD the level that would be achieved by the ignition power on cycle; supplier and its new supplier, Platform current regulation (49 CFR 381.305). • Science, Werner requests that, during The decision of the Agency must be Engine Hours Total—total engine the first eight days that each of its published in the Federal Register (49 hours at time of event; and drivers transitions to Platform Science, CFR 381.315(b)) with the reasons for • Odometer Total (decimal)—total at the company be permitted to leave denying or granting the application and, time of the event. blank five specific data fields in the if granted, the name of the person or Consequently, during the first eight RODS file. The Agency has determined class of persons receiving the days a driver is operating a Werner that the limited exemption would likely exemption, and the regulatory provision vehicle equipped with the new Platform achieve a level of safety equivalent to or from which the exemption is granted. Science ELD, the electronic RODS file greater than the level that would be The notice must also specify the accessible in the vehicle will not obtained in the absence of the effective period and explain the terms include the five data elements specified exemption. and conditions of the exemption. The for the full required time prior to the DATES: This exemption is effective July exemption may be renewed (49 CFR installation of the new ELD; however, 7, 2020 and expires July 7, 2021. 381.300(b)). all other information needed to FOR FURTHER INFORMATION CONTACT: Ms. III. Background determine compliance with the HOS rules will be available. The inspector Pearlie Robinson, FMCSA Driver and On December 16, 2015 (80 FR 78292), would review the electronic RODS via Carrier Operations Division; Office of FMCSA published a final rule requiring FMCSA’s eRODS software which would Carrier, Driver and Vehicle Safety most drivers who are required to detect the missing data elements in the Standards; Telephone: (202) 366–4325; prepare hours-of-service (HOS) RODS to Platform Science ELD presentation of Email: [email protected]. If you have use ELDs instead of paper logs to the previous eight days of RODS. This questions on viewing or submitting document their RODS. The final rule problem will affect Werner’s entire fleet material to the docket, contact Docket also established minimum performance which consists of roughly 10,000 drivers Services, telephone (202) 366–9826. and technical design standards for and 8,000 power units as the transition I. SUPPLEMENTARY INFORMATION: ELDs. Appendix A to subpart B of 49 takes place. Viewing Comments and Documents CFR part 395 (appendix A) provides requirements for data fields that must be Werner notes that its drivers would To view comments, as well as included in electronic RODS files have electronic RODS files available for documents mentioned in this preamble generated by ELDs. Generally, if more review using FMCSA’s eRODS software as being available in the docket, go to than one ELD is used to record a driver’s providing accurate duty status www.regulations.gov and insert the records, the ELD in the vehicle the information for the current day and the docket number, ‘‘FMCSA–2020–0114’’ driver most recently operates must previous seven days at any inspection in the ‘‘Keyword’’ box and click produce a complete ELD report for the location. While the files would not ‘‘Search.’’ Next, click the ‘‘Open Docket driver on demand, reflecting the current include the five data elements listed, Folder’’ button and choose the 24-hour period and the previous 7 HOS information can still be verified at document to review. If you do not have consecutive days. the roadside, and the information would access to the internet, you may view the be available for an on-site investigation docket by visiting the Docket IV. Werner’s Exemption Application conducted at a Werner facility. The Management Facility in Room W12–140 Werner requests that during the first remaining data elements would provide on the ground floor of the DOT West eight days that each of its drivers makes a means for identifying non-compliance Building, 1200 New Jersey Avenue SE, the transition from Werner’s current with the underlying HOS requirements. Washington, DC 20590, between 9 a.m. ELD supplier to its new supplier, Werner is requesting a one-year and 5 p.m., e.t., Monday through Friday, Platform Science, five specific data exemption to complete the transition.

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V. Method To Ensure an Equivalent or The 12 opponents were: Jesse Cole, VIII. Terms and Conditions for the Greater Level of Safety Mark Rawn, Michael Groff, Larry Gump, Exemption Michael Glenn, George Thornton, David According to Werner’s application, This exemption is limited to Section ‘‘[p]aper logbooks can be lost, falsified, Battiest, Darrin Atkinson, Michael 4.8 of appendix A to subpart B of part illegible, etc. We know due to our Crites, John Smith, John Haynes, and 395 concerning the requirements for the extensive log audit system, which Caelan Helsel. Larry Gump stated, following data fields in electronic RODS includes 100% real-time monitoring of ‘‘[p]lease deny this request it is files generated by Omnitracs ELDs and hours of service records, that the unnecessary and [sic] Werner can afford retrieved via a Platform Science ELD: Omnitracs hours of service records are to ensure the fields are provided.’’ Mr. • Information to be included in the accurate. Having the ability to upload Michael Crites wrote, ‘‘[a]bsolutely no Print/Display as required by 4.8.1.3(b): this electronic data for the 8 days exemption should be granted to any Æ Co-Driver: Co-Driver’s Last Name, Co- preceding the transition to the new carrier. Especially one that pushed for Driver’s First Name Platform Science system is a safer the ELD mandate. They need to be held Æ Co-Driver ID: ELD username for the option for our drivers to prevent fatigue responsible for not having their act co-driver and helps roadside enforcement be together. If this was any other carrier Æ Total Vehicle Miles assured that the information is they would be held liable. Many other Æ Total Engine Hours accurate.’’ However, certain fields outfits have done exactly what was Æ Accumulated Vehicle Miles, and Æ identified by Werner cannot be required of them. This is a [multi- Elapsed Engine Hours; accurately transferred onto the new million] dollar company. They have no • Co-driver information as required in devices from its prior ELD data. excuse for this.’’ 4.8.2.1.1 of the Header Segment; A copy of the exemption application • ELD Event List records data VII. FMCSA Safety Analysis and elements required by 4.8.2.1.4 and the is included in the docket referenced at Decision the beginning of this notice. ELD Event Log List for the Unidentified Driver Profile 4.8.2.1.10: VI. Public Comments FMCSA has evaluated the application for exemption and the public comments Æ Accumulated Vehicle Miles, and Æ On April 13, 2020 (85 FR 20566), submitted. Elapsed Engine Hours; FMCSA published a Federal Register • Data elements for Malfunction and Based on the information presented in notice requesting public comment on Data Diagnostic Events 4.8.2.1.7, ELD Werner’s request, the Agency believes it Werner’s exemption application. The Login/Logout Report 4.8.2.1.8 and is appropriate to grant the exemption Agency received 19 comments from the CMV’s Power-Up and Shut Down covering the appendix A requirement public, six in favor and 12 in Activity 4.8.2.1.9: for the specific data fields discussed opposition. Æ Total Vehicle Miles, and above during the 8-day period following The six supporters were: The Æ Total Engine Hours. the installation of the Platform Science American Trucking Associations (ATA), During the period of the exemption: ELD. We have determined, as required California Trucking Association, 1. Werner must ensure that each of its by 49 U.S.C. 31315(b)(1) and the Commercial Vehicle Training drivers continues to use ELDs that meet implementing regulations under 49 CFR Association (CVTA), Florida Trucking all the technical specifications required Association, Nebraska Trucking part 381, that the exemption is likely to by 49 CFR part 395; Association and Truckload Carriers achieve a level of safety that is 2. Each driver operating under the Association. For example, ATA wrote: equivalent to, or greater than, the level exemption must maintain a copy of this of safety that would be obtained in the notice and documentation of the date of The application merely presents a specific absence of the exemption. means to allow the interoperability of two installation of the Platform Science ELD ELD systems—not to exempt its drivers from From a safety equivalency to establish the 8-day period for which the broader ELD requirements that ATA has perspective, all of Werner’s drivers the exemption is applicable; long supported. Consequently, ATA believes would have electronic RODS files 3. Werner must maintain all this application meets FMCSA’s requirement available for review at any inspection electronic files generated by Omnitracs under 49 CFR 381.210(c)(4) to establish an location using FMCSA’s eRODS ELDs for each of its drivers for at least equivalent or greater level of safety. As software providing accurate duty status 6 months from the date the records were discussed, the application’s limited time and created and ensure that each of those scope provide Werner with the flexibility its information for the current day and the previous seven days. While the files files contains all the data elements staff and engineers need to monitor fleet specified by Section 4.8 of appendix A compliance with HOS rules. Werner’s desire would not include the specific data to use RODS generated from an ELD—as elements discussed above, HOS to subpart B of part 395. compared to reverting to manually created information can still be verified at the Preemption of State Laws and paper records—will also undoubtedly roadside, and the information would be Regulations eliminate the ability for falsification and available for an on-site investigation During the period this exemption is in inaccurate records. conducted at a Werner facility. The effect, no State shall enforce any law or remaining data elements would provide CVTA said: regulation that conflicts with or is more than sufficient means for For the reasons as outlined by the inconsistent with this exemption with identifying non-compliance with the American Trucking Associations, Truckload respect to a firm or person operating underlying hours-of-service Carriers Association, the Florida Trucking under the exemption (49 U.S.C. requirements. Association, California Trucking Association, 31315(d)). and Nebraska Trucking Association, CVTA For the reasons cited above, we grant also believes that granting this exemption Werner Enterprises a limited waiver Notification to FMCSA makes sense. Because we believe granting this exemption poses no risk to highway from the appendix A requirements for Werner must notify FMCSA within 5 safety, we encourage the FMCSA to move the specific data elements listed above business days of any accident (as forward and grant the application for with terms and conditions provided defined in 49 CFR 390.5), involving any exemption. below. of the motor carrier’s CMVs operating

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under the terms of this exemption. The SUMMARY: The National Highway Traffic comments received, go to http:// notification must include the following Safety Administration (NHTSA) seeks www.regulations.gov or the street information: public comment about our intention to address listed above. Follow the online (a) Identity of the exemption: ‘‘Werner request the Office of Management and instructions for accessing the dockets. Enterprises’’; Budget’s approval on the reinstatement FOR FURTHER INFORMATION CONTACT: (b) Name of operating motor carrier; of a previously approved information Complete copies of each request for (c) Date of the accident; collection. Before a Federal agency can collection of information may be (d) City or town, and State, in which collect certain information from the obtained at no charge from Ms. Johanna the accident occurred, or closest to the public, it must receive approval from Lowrie, U.S. Department of accident scene; the Office of Management and Budget Transportation, NHTSA, Room W43– (e) Driver’s name and license number; (OMB). Under procedures established 410, 1200 New Jersey Ave. SE, (f) Vehicle number and State license by the Paperwork Reduction Act of Washington, DC 20590. Ms. Lowrie’s number; 1995, before seeking OMB approval, telephone number is (202) 366–5269. (g) Number of individuals suffering Federal agencies must solicit public Please identify the relevant collection of physical injury; comment on proposed collections of information by referring to its OMB (h) Number of fatalities; information, including extensions and (i) The police-reported cause of the Control Number. reinstatement of previously approved SUPPLEMENTARY INFORMATION: Under the accident; collections. This document describes (j) Whether the driver was cited for Paperwork Reduction Act of 1995, one collection of information violation of any traffic laws, motor before an agency submits a proposed concerning vehicle safety features for carrier safety regulations; and collection of information to OMB for consumer information purposes for (k) The driver’s total driving time and approval, it must first publish a which NHTSA intends to seek OMB total on-duty time period prior to the document in the Federal Register approval (OMB Control number 2127– accident. providing a 60-day comment period and 0629). Reports filed under this provision otherwise consult with members of the shall be emailed to [email protected]. DATES: Comments should be submitted public and affected agencies concerning on or before September 8, 2020. each proposed collection of information. Termination ADDRESSES: You may submit comments In compliance with these requirements, FMCSA does not believe the drivers [identified by Docket No. NHTSA– NHTSA asks for public comment on the covered by this exemption will 2019–0113] through one of the following proposed collection of experience any deterioration of their following methods: information: safety record. Interested parties or • Federal eRulemaking Portal: Go to Title: Vehicle Information for the organizations possessing information http://www.regulations.gov. Follow the General Public. that would otherwise show that Werner online instructions for submitting OMB Control Number: 2127–0629. is not achieving the requisite statutory comments. Mail: Docket Management Type of Request: Reinstatement of a level of safety should immediately Facility; M–30, U.S. Department of previously approved collection. notify FMCSA. Transportation, West Building Ground Type of Review Requested: Regular. The Agency will evaluate any Floor, Rm. W12–140, 1200 New Jersey Length of Approval Requested: Three information submitted and, if safety is Avenue SE, Washington, DC 20590. Years. being compromised or if the • Hand Delivery or Courier: West Abstract: NHTSA’s mission is to save continuation of this exemption is Building Ground Floor, Room W12–140, lives, prevent injury, and reduce motor inconsistent with 49 U.S.C. 31315(b)(4) 1200 New Jersey Avenue SE, vehicle crashes. Consumer information and 31136(e), FMCSA will immediately Washington, DC 20590 between 9 a.m. programs are an important tool for take steps to revoke the exemption. and 5 p.m. Eastern Time, Monday improving vehicle safety through market forces. Pursuant to 49 U.S.C. 32302, the James A. Mullen, through Friday, except Federal holidays. • Fax: (202) 493–2251. Secretary of Transportation (NHTSA by Deputy Administrator. Regardless of how you submit your delegation) is directed to provide to the [FR Doc. 2020–14496 Filed 7–6–20; 8:45 am] comments, please be sure to mention public the following information about BILLING CODE 4910–EX–P the docket number of this document and passenger motor vehicles: Damage identify the proposed collection of susceptibility; crashworthiness, crash information for which a comment is avoidance, and any other areas the DEPARTMENT OF TRANSPORTATION provided, by referencing its OMB Secretary determines will improve safety of passenger motor vehicles; and National Highway Traffic Safety clearance number. the degree of difficulty of diagnosis and Administration Note: All comments received will be posted without change to http:// repair of damage to, or failure of, [Docket No. NHTSA–2019–0113] www.regulations.gov, including any mechanical and electrical systems. For personal information provided. Anyone more than 40 years, under its New Car Agency Information Collection is able to search the electronic form of Assessment Program (NCAP), NHTSA Activities; Notice and Request for all comments received into any of our has been providing consumers with Comment; Vehicle Information for the dockets by the name of the individual vehicle safety information such as General Public submitting the comment (or signing the frontal and side crash results, crash AGENCY: National Highway Traffic comment, if submitted on behalf of an avoidance performance test results, Safety Administration (NHTSA), association, business, labor union, etc.). rollover propensity, and the availability Department of Transportation (DOT). You may review DOT’s complete of a wide array of safety features Privacy Act Statement in the Federal provided on new model year vehicles. ACTION: Notice and request for Additionally, the agency uses this safety comments on a reinstatement of a Register published on April 11, 2000 feature information when responding to previously approved collection of (65 FR 19477–78). Docket: For access to the docket to consumer inquiries and analyzing information. read background documents or rulemaking petitions and the regulatory

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impacts of Congressional Acts that Affected Public: Manufacturers that and light truck vehicles (including sport require the agency to issue or consider sell passenger cars and light truck utility vehicles, pickup trucks, and issuing new rules that would mandate vehicles (including sport utility vans) in the United States with a Gross certain vehicle safety features. vehicles, pickup trucks, and vans) that Vehicle Weight Rating of 10,000 pounds NHTSA has another information have a Gross Vehicle Weight Rating or less, that NHTSA requests annually (GVWR) of 10,000 pounds or less in the to respond to this information request. collection to obtain data related to United States. These 21 vehicle manufacturers produce motor vehicle compliance with the Estimated Number of Respondents: an aggregate of approximately 400 agency’s Federal motor vehicle safety 21. vehicle models each year. Estimates are standards. Although the consumer Frequency: Annually. based on an expected 5 hours to prepare information collection data (requested Number of Responses: 21. the request for each vehicle model. In by NCAP) is distinct and unique from The consumer information collected addition, the estimate on total annual the compliance data, respondents to will be used to disseminate vehicle burden hours for each task is based on both collections are similar. Thus, the safely information via the agency’s a proportion of the job function (e.g., 50 consumer information collection is www.nhtsa.gov website, in the percent for data entry; 40 percent for closely coordinated with the ‘‘Purchasing with Safety in Mind: What technical information validation; 10 compliance collection to enable to look for when buying a new vehicle’’ percent for technical content approval). responders to assemble the data more brochure, and in other consumer Estimated Total Annual Burden efficiently. The burden is further publications, as well as for internal Hours: 2,000 hours. reduced by sending electronic files to agency analyses and responses to Number of vehicle models: 400. the respondents so that they can enter consumer inquiries. Number of hours per vehicle model: 5. the data and return it to the agency There are approximately 21 vehicle Total annual burden hours: 2,000 = (5 electronically. manufacturers that sell passenger cars hours/model × 400 models).

Estimated Estimated total Vehicle models hours per annual burden per year vehicle hours

Preparation of Response ...... 400 5 2,000

A breakdown of the total annual Burden hours for data entry = 2,000 Burden hours for technical content burden hours (2,000) for this collection hours × 50 percent = 1,000 hours. approval = 2,000 hours × 10 percent = of information by labor type is as Burden hours for technical 200 hours. follows: information validation = 2,000 hours × 40 percent = 800 hours.

Hours by labor type Percentage of Number of total hours hours

Data Entry ...... 50 1,000 Technical Information Validation ...... 40 800 Technical Content Approval ...... 10 200

Estimated Annual Labor Costs: Cost associated with technical Cost associated with total annual $127,035. information validation = 800 hours × burden hours is $127,035 = ($52,083 + 3 Cost associated with data entry = $50.27 per hour/0.701 = $57,369. $57,369 + $17,583). 1,000 hours × $36.51 1 per hour/0.701 2 Cost associated with technical content × 4 = $52,083. approval = 200 hours $61.63 per hour/0.701 = $17,583.

Percent Total Average wage of total compensation Annual hours Annual labor compensation rate cost

Data Entry ...... $36.51 70.1 $52.08 1,000 $52,083 Vehicle Info. Validation ...... 50.27 70.1 71.71 800 57,369 Tech. Content Approval ...... 61.63 70.1 87.92 200 17,583

1 ‘‘Motor Vehicle Manufacturing—May 2016 OES 2 See Table 1 at https://www.bls.gov/news.release/ oes/2016/may/naics4_336100.htm. Accessed Dec. 9, Industry-Specific Occupational Employment and pdf/ecec.pdf for the total compensation rate for the 2019. Wage Estimates.’’ March 31, 2017. Business employer for private workers. 4 ‘‘Motor Vehicle Manufacturing—May 2016 OES Operations Specialists, Occupation Code 13–1000; 3 ‘‘Motor Vehicle Manufacturing—May 2016 OES Industry-Specific Occupational Employment and Mean Hourly Wage = $36.51. https://www.bls.gov/ Industry-Specific Occupational Employment and Wage Estimates.’’ March 31, 2017. Advertising, Marketing, Promotions, Public Relations, and Sales oes/2016/may/naics4_336100.htm. Accessed Dec. 9, Wage Estimates.’’ March 31, 2017. Operations Managers, Occupation Code 11–2000; Mean Hourly 2019. Specialties Managers, Occupation Code 11–3000; Wage = $61.63. https://www.bls.gov/oes/2016/may/ Mean Hourly Wage = $50.27. https://www.bls.gov/ naics4_336100.htm. Accessed Dec. 9, 2019.

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Percent Total Average wage of total compensation Annual hours Annual labor compensation rate cost

Estimated Annual Labor Cost for This Information Collection: ...... 127,035

Public comments invited: The agency of previously approved collections. This Transportation, NHTSA, 1200 New seeks comment on any aspect of this document describes a collection of Jersey Avenue SE, Washington, DC information collection, including (a) labeling information on FMVSS No. 20590. Mr. Denes’s telephone number is whether the proposed collection of 108, for which NHTSA intends to seek (202) 366–1810, and fax number is (202) information is necessary for the OMB approval (OMB Control number 366–7002. Department’s performance; (b) the 2127–0569). The labeling requirement is SUPPLEMENTARY INFORMATION: Under the accuracy of the estimated burden; (c) for retroreflective sheeting material. Paperwork Reduction Act of 1995, ways for the Department to enhance the DATES: Comments must be received on before a proposed collection of quality, utility, and clarity of the or before September 8, 2020. information is submitted to OMB for information collection; and (d) ways ADDRESSES: You may submit comments approval, Federal agencies must first that the burden could be minimized [identified by Docket No. NHTSA– publish a document in the Federal without reducing the quality of the 2011–0084] by any of the following Register providing a 60-day comment collected information. The agency will methods: period and otherwise consult with summarize and/or include your • Federal eRulemaking Portal: Go to members of the public and affected comments in the request for OMB’s http://www.regulations.gov. Follow the agencies concerning each proposed clearance of this information collection. online instructions for submitting collection of information. The OMB has Authority: The Paperwork Reduction Act comments. Mail: Docket Management promulgated regulations describing of 1995; 44 U.S.C. chapter 35; and delegation Facility; M–30, U.S. Department of what must be included in such a of authority at 49 CFR 1.95 and 501.8. Transportation, West Building Ground document. In compliance with these Raymond R. Posten, Floor, Rm. W12–140, 1200 New Jersey requirements, NHTSA asks for public Associate Administrator for Rulemaking. Avenue SE, Washington, DC 20590. comments on the following proposed • Hand Delivery or Courier: West collection of information: [FR Doc. 2020–14569 Filed 7–6–20; 8:45 am] Title: 49 CFR 571.108, Standard No. BILLING CODE 4910–59–P Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, 108; Lamps, reflective devices, and Washington, DC 20590 between 9 a.m. associated equipment; Compliance DEPARTMENT OF TRANSPORTATION and 5 p.m. Eastern Time, Monday Labeling of Retroreflective Materials through Friday, except Federal holidays. Heavy Trailer Conspicuity. National Highway Traffic Safety • Fax: (202) 493–2251. OMB Control Number: 2127–0569. Type of Request: Reinstatement of a Administration Regardless of how you submit your previously approved collection. [Docket Number NHTSA–2011–0084] comments, please be sure to mention Type of Review Requested: Regular. the docket number of this document and Length of Approval Requested: Three Agency Information Collection identify the proposed collection of Years. Activities; Notice and Request for information for which a comment is Abstract: 49 U.S.C. 30111, 30112, and Comment; Compliance Labeling of provided, by referencing its OMB 30117 of the National Traffic and Motor Retroreflective Materials for Heavy clearance number. Vehicle Safety Act of 1966 authorize the Trailer Conspicuity Note: All comments received will be issuance of Federal Motor Vehicle posted without change to http:// AGENCY: National Highway Traffic Safety Standards (FMVSS). The agency, www.regulations.gov, including any in prescribing a FMVSS, considers Safety Administration (NHTSA), personal information provided. Anyone Department of Transportation (DOT). available relevant motor vehicle safety is able to search the electronic form of data and consults with other agencies, ACTION: Request for public comment on all comments received into any of our as it deems appropriate. Further, the the reinstatement of a previously dockets by the name of the individual approved collection of information. statute mandates that, in issuing any submitting the comment (or signing the FMVSS, the agency considers whether SUMMARY: The Department of comment, if submitted on behalf of an the standard is ‘‘reasonable, practicable Transportation (DOT) invites public association, business, labor union, etc.). and appropriate for the particular type comments about our intention to request You may review DOT’s complete of motor vehicle or motor vehicle the Office of Management and Budget Privacy Act Statement in the Federal equipment for which it is prescribed,’’ (OMB) approval on the reinstatement of Register published on April 11, 2000 and whether such a standard will a previously approved collection of (65 FR 19477–78). contribute to carrying out the purpose of information on Federal Motor Vehicle Docket: For access to the docket to the Act. The Secretary is authorized to Safety Standard (FMVSS) No. 108. read background documents or issue such rules and regulations as Before a Federal agency can collect comments received, go to http:// deemed necessary to carry out these certain information from the public, it www.regulations.gov or the street requirements. Under this authority, the must receive approval from the OMB. address listed above. Follow the online agency issued FMVSS No. 108, Under procedures established by the instructions for accessing the dockets. specifying labeling requirements to aid Paperwork Reduction Act of 1995, FOR FURTHER INFORMATION CONTACT: the agency in achieving many of its before seeking OMB approval, Federal Complete copies of each request for safety goals. agencies must solicit public comment collection of information may be This notice requests comments on the on proposed collections of information, obtained at no charge from Andrei labeling requirements of FMVSS No. including extensions and reinstatement Denes, U.S. Department of 108, ‘‘Lamp, reflective devices and

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associated equipment,’’ which requires that 190 million labels will be required continue the printing of the label. In that the inscription ‘‘DOT–C2’’, ‘‘DOT– annually (2.34 million trailers × 80 fact, costs would be incurred to C3’’, or ‘‘DOT–C4’’, as appropriate, labels + 0.54 million truck tractors × 6 discontinue the label. constituting a certification that the labels). The second method uses a separate retroreflective sheeting conforms to the Estimated Total Annual Burden roller and dye to apply the label. The requirements of the standard, appear at Hours: 3 hours. manufacturer using this technique least once on the exposed surface of The compliance symbol labeling reported that the rollers have been in each white or red segment of program imposes only a minor hour service for five years without detectable retroreflective sheeting, and at least burden per respondent, or three total wear and predicted a service life of at once every 300 mm on retroreflective hours, for the collection or reporting least fifteen years. Four rollers costing sheeting that is white only. The based on a maximum time required to about $2,500 each are used for a total of characters must be not less than 3 mm ensure that the correct inscription is $10,000. If all three manufacturers chose high, and must be permanently being applied to the sheeting by the to use this method, a total of 12 rollers stamped, etched, molded, or printed in printing presses. The application of would be used for a total cost of indelible ink. symbols is performed by automated $30,000. A straight-line depreciation of Affected Public: Manufacturers of equipment incorporated in the the rollers over 15 years ($30,000 conspicuity grade retroreflective production process of the retroreflective divided by 15 years) equals $2,000 per materials. sheeting. year. The total cost of the dye required Estimated Number of Respondents: 3. Estimated Total Annual Burden Cost: is derived from the number of labels The respondents are likely to be $4,000. required to be printed yearly and the manufacturers of the conspicuity The cost to respondents is estimated dye required for each label. The total material. The agency estimates that based on information that was supplied number of labels printed annually is currently there are three manufacturers by the respondents regarding the cost of about 190 million. Therefore, at a cost producing conspicuity material. supplying or modifying printing rollers of approximately $40 per gallon of dye Frequency: As needed. to apply the label. The cost to and using about 0.001 milliliters of dye Number of Responses: 190,000,000. manufacturers of applying the label per label, the total cost of dye to print It is estimated that there are 2.34 requirement is the maintenance and all the labels is estimated to be $2,000 million trailers and 0.54 million truck amortization of printing rollers and the (190 million labels × $40/gal × 0.001 ml tractors that require new conspicuity additional dye or ink consumed. The × 0.000264172 ml/gal). With the yearly tape annually. On average, a trailer labels are printed during the normal cost to replace the rollers of $2,000 and requires approximately 60 ft. of course of steady flow manufacturing an annual allowance of $2,000 for dye, reflective tape and a truck tractor operations and do not add additional the annual total industry cost of requires about 4 ft. The labels are to be time to the production process. maintaining the label is about $4,000. placed at intervals varying between 150 Two methods of printing the label are Estimated annual cost burden: mm and 300 mm on rolls of in use. One method uses the same roller retroreflective conspicuity tape. that applies the dye to the red segments Additional cost of maintaining printing Considering the length of tape required of the material pattern. The roller is rollers with added label—$0 per trailer and truck tractor, and that the resurfaced annually using a Annual cost of separate printing rollers labeling is applied on average every 9 computerized etching technique. The for label (where used)—$2,000 in. (225 mm), a total number of 80 labels label was incorporated in the software Annual cost of additional dye or ink— per trailer and 6 labels per truck tractor to drive the roller resurfacing in 1993, $2,000 are required. Therefore, it is estimated and there is no additional cost to Total annual respondent cost—$4,000

Total annual Annual Est. total Number of rollers Cost of Total Depreciation labels additional dye annual cost to each roller cost rollers over 15 years (million) allowance maintain label

12 ...... $2,500 $30,000 $2,000 190 $2,000 $4,000

Public Comments Invited: You are (Authority: The Paperwork Reduction Act of will hold a meeting on Wednesday, asked to comment on any aspects of this 1995; 44 U.S.C. chapter 35; and delegation of September 2, 2020, by teleconference. information collection, including (a) authority at 49 CFR 1.95 and 501.8) The teleconference number is 1–404– whether the proposed collection of Raymond R. Posten, 397–1596. The meeting will convene at information is necessary for the proper Associate Administrator for Rulemaking. 11:00 a.m. and end at 2:00 p.m. Eastern daylight time. This meeting is open to performance of the functions of the [FR Doc. 2020–14570 Filed 7–6–20; 8:45 am] the public. Department, including whether the BILLING CODE 4910–59–P information will have practical utility; The purpose of the National Research (b) the accuracy of the Department’s Advisory Council is to advise the Secretary on research conducted by the estimate of the burden of the proposed DEPARTMENT OF VETERANS information collection; (c) ways to Veterans Health Administration, AFFAIRS including policies and programs enhance the quality, utility and clarity targeting the high priority of Veterans’ of the information to be collected; and National Research Advisory Council; Notice of Meeting health care needs. (d) ways to minimize the burden of the On September 2, 2020, the agenda collection of information on The Department of Veterans Affairs will include a discussion of concrete respondents, including the use of (VA) gives notice under the Federal steps to address minority representation automated collection techniques or Advisory Committee Act, that the in research; follow-up discussion of the other forms of information technology. National Research Advisory Council mental health research portfolio related

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to COVID 19; disparities and COVID 19; for Public Comments’’ or by using the Affairs, is announcing an opportunity and discussion of research efforts that search function. Refer to ‘‘OMB Control for public comment on the proposed contributed to COVID response. No time No. 2900–0029.’’ collection of certain information by the will be allocated at this meeting for FOR FURTHER INFORMATION CONTACT: agency. Under the Paperwork Reduction receiving oral presentations from the Danny S. Green, (202) 421–1354 or Act (PRA) of 1995, Federal agencies are public. Members of the public wanting email [email protected]. Please required to publish notice in the to attend, have questions or refer to ‘‘OMB Control No. 2900–0029’’ Federal Register concerning each presentations to present may contact Dr. in any correspondence. proposed collection of information, Marisue Cody, Designated Federal SUPPLEMENTARY INFORMATION: Authority: including each proposed extension of a Officer, Office of Research and 44 U.S.C. 3501–21. currently approved collection, and Development (10X2), Department of Title: VA FORM 26–6705, OFFER TO allow 60 days for public comment in Veterans Affairs, 810 Vermont Avenue PURCHASE AND CONTRACT OF response to the notice. NW, Washington, DC 20420, at 202– SALE, VA FORM 26–6705b AND DATES: Written comments and 443–5681, or at [email protected] FANNIE MAE (FNMA) FORM 1003, recommendations on the proposed no later than close of business on UNIFORM RESIDENTIAL LOAN collection of information should be August 28, 2020. All questions and APPLICATION, CREDIT STATEMENT received on or before September 8, presentations will be presented during OF PROSPECTIVE PURCHASER, AND 2020. the public comment section of the VA FORM 26–6705d, ADDENDUM TO meeting. Any member of the public ADDRESSES: Submit written comments VA FORM 26–6705 (VIRGINIA). on the collection of information through seeking additional information should OMB Control Number: 2900–0029. contact Dr. Cody at the above phone Type of Review: Extension of a Federal Docket Management System number or email address noted above. currently approved collection. (FDMS) at www.Regulations.gov or to Nancy J. Kessinger, Veterans Benefits Dated: July 1, 2020. Abstract: Under the authority of 38 U.S.C. 3720(a)(5) and (6) the Department Administration (20M33), Department of LaTonya L. Small, of Veterans Affairs (VA) acquires Veterans Affairs, 810 Vermont Avenue Federal Advisory Committee Management properties for sale to the general public NW, Washington, DC 20420 or email to Officer. utilizing a private Service Provider. The [email protected]. Please refer to [FR Doc. 2020–14511 Filed 7–6–20; 8:45 am] Service Provider utilizes private listings ‘‘OMB Control No. 2900–0875’’ in any BILLING CODE P and sales brokers to sell VA properties. correspondence. During the comment The Federal Register Notice with a period, comments may be viewed online 60-day comment period soliciting through FDMS. DEPARTMENT OF VETERANS comments on this collection of FOR FURTHER INFORMATION CONTACT: AFFAIRS information was published at 85 FR 81 Danny S. Green, (202) 421–1354 or [OMB Control No. 2900–0029] on April 27, 2020, page 23438. email [email protected]. Please Affected Public: Individuals or refer to ‘‘OMB Control No. 2900–0875’’ Agency Information Collection Households. in any correspondence. Activity: VA Form 26–6705, Offer to Estimated Annual Burden: 17,458. SUPPLEMENTARY INFORMATION: Under the Purchase and Contract of Sale, VA Estimated Average Burden Per PRA of 1995, Federal agencies must Form 26–6705b, Credit Statement of Respondent: 20 minutes and 5 minutes obtain approval from the Office of Prospective Purchaser, and VA Form (average 15 minutes between the three Management and Budget (OMB) for each 26–6705d, Addendum to VA Form 26– forms). collection of information they conduct 6705 (VIRGINIA) Frequency of Response: One time. Estimated Number of Respondents: or sponsor. This request for comment is AGENCY: Veterans Benefits 53,500. being made pursuant to Section Administration, Department of Veterans 3506(c)(2)(A) of the PRA. By direction of the Secretary. Affairs. With respect to the following Danny S. Green, ACTION: Notice. collection of information, VBA invites VA PRA Clearance Officer, Office of Quality, comments on: (1) Whether the proposed SUMMARY: In compliance with the Performance and Risk, Department of collection of information is necessary Paperwork Reduction Act (PRA) of Veterans Affairs. for the proper performance of VBA’s 1995, this notice announces that the [FR Doc. 2020–14536 Filed 7–6–20; 8:45 am] functions, including whether the Veterans Benefits Administration, BILLING CODE 8320–01–P information will have practical utility; Department of Veterans Affairs, will (2) the accuracy of VBA’s estimate of the submit the collection of information burden of the proposed collection of abstracted below to the Office of DEPARTMENT OF VETERANS information; (3) ways to enhance the Management and Budget (OMB) for AFFAIRS quality, utility, and clarity of the review and comment. The PRA [OMB Control No. 2900–0875] information to be collected; and (4) submission describes the nature of the ways to minimize the burden of the information collection and its expected Agency Information Collection collection of information on cost and burden and it includes the Activity: VA-Guaranteed Home Loan respondents, including through the use actual data collection instrument. Cash-Out Refinance Loan Comparison of automated collection techniques or DATES: Written comments and Disclosure the use of other forms of information technology. recommendations for the proposed AGENCY: Veterans Benefits information collection should be sent Administration (VBA), Department of Authority: Public Law 115–174; 38 CFR within 30 days of publication of this Veterans Affairs. 36.4306. notice to www.reginfo.gov/public/do/ ACTION: Notice. Title: VA-Guaranteed Home Loan PRAMain. Find this particular Cash-Out Refinance Loan Comparison information collection by selecting SUMMARY: Veterans Benefits Disclosure. ‘‘Currently under 30-day Review—Open Administration, Department of Veterans OMB Control Number: 2900–0875.

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Type of Review: Extension of a application date and at closing may Estimated Average Burden per currently approved collection. result in indemnification of the loan up Respondent: 5 minutes. Abstract: All-VA guaranteed cash-out to 5 years. There are three categories of Frequency of Response: On occasion. refinancing loans must comply with the refinance loans; Interest Rate Reduction Estimated Number of Respondents: Act and AQ42. All refinancing loan Refinancing Loans (IRRRL), TYPE I 158,000. applications taken on or after the Cash-Out Refinance, and TYPE II Cash- By direction of the Secretary. effective date that do not meet the Out Refinance. Danny S. Green, following requirements may be subject Affected Public: Individuals and VA Clearance Officer, Office of Quality, to indemnification or the removal of the households. Performance and Risk, Department of Veterans Affairs. guaranty. Failure to provide initial Estimated Annual Burden: 12,480 disclosures to the Veteran within 3 [FR Doc. 2020–14495 Filed 7–6–20; 8:45 am] hours. business days from the initial BILLING CODE 8320–01–P

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Part II

Environmental Protection Agency

40 CFR Part 63 National Emission Standards for Hazardous Air Pollutants: Organic Liquids Distribution (Non-Gasoline) Residual Risk and Technology Review; Final Rule

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ENVIRONMENTAL PROTECTION the EPA Docket Center, WJC West Synthetic Organic Chemical Manufacturing AGENCY Building, Room Number 3334, 1301 Industry, also known as the Hazardous Constitution Ave. NW, Washington, DC. Organic NESHAP 40 CFR Part 63 The Public Reading Room hours of HQ hazard quotient operation are 8:30 a.m. to 4:30 p.m., IBR incorporation by reference [EPA–HQ–OAR–2018–0074; FRL–10006–88– ICR Information Collection Request OAR] Eastern Standard Time (EST), Monday km kilometer through Friday. The telephone number LEL lower explosive limit RIN 2060–AT86 for the Public Reading Room is (202) LDAR leak detection and repair 566–1744, and the telephone number for National Emission Standards for MACT maximum achievable control the EPA Docket Center is (202) 566– technology Hazardous Air Pollutants: Organic 1742. MDL method detection limit Liquids Distribution (Non-Gasoline) MIR maximum individual risk Residual Risk and Technology Review FOR FURTHER INFORMATION CONTACT: For NESHAP national emission standards for questions about this final action, contact hazardous air pollutants AGENCY: Environmental Protection Mr. Neil Feinberg, Sector Policies and NHVcz net heating value in the combustion Agency (EPA). Programs Division (E143–01), Office of zone gas ACTION: Final rule. Air Quality Planning and Standards, NHVvg net heating value of the flare vent U.S. Environmental Protection Agency, gas SUMMARY: This action finalizes the Research Triangle Park, North Carolina NOCS Notification of Compliance Status residual risk and technology review 27711; telephone number: (919) 541– NTTAA National Technology Transfer and Advancement Act (RTR) conducted for the Organic 2214; fax number: (919) 541–0516; and Liquids Distribution (Non-Gasoline) OAQPS Office of Air Quality Planning and email address: feinberg.stephen@ Standards (OLD) source category regulated under epa.gov. For specific information National Emission Standards for OLD Organic Liquids Distribution (Non- regarding the risk assessment, contact Gasoline) Hazardous Air Pollutants (NESHAP). Ms. Darcie Smith, Health and OMB Office of Management and Budget The U.S. Environmental Protection Environmental Impacts Division (C539– PDF portable document format Agency (EPA) is finalizing amendments 02), Office of Air Quality Planning and POM polycyclic organic matter to the storage tank requirements as a Standards, U.S. Environmental ppm parts per million result of the RTR. In addition, we are Protection Agency, Research Triangle ppmv parts per million by volume PRA Paperwork Reduction Act taking final action to correct and clarify Park, North Carolina 27711; telephone regulatory provisions related to PRD pressure relief device number: (919) 541–2076; fax number: psia pounds per square inch absolute emissions during periods of startup, (919) 541–0840; and email address: shutdown, and malfunction (SSM); add REL reference exposure level [email protected]. For information RFA Regulatory Flexibility Act requirements for electronic reporting of about the applicability of the NESHAP RTR residual risk and technology review performance test results and reports, to a particular entity, contact Mr. Jon SCAQMD South Coast Air Quality performance evaluation reports, Cox, Office of Enforcement and Management District compliance reports, and Notification of Compliance Assurance, U.S. SDS safety data sheet(s) Compliance Status (NOCS) reports; add Environmental Protection Agency, WJC SOCMI synthetic organic chemical manufacturing industry operational requirements for flares; and South Building, 1200 Pennsylvania Ave. make other minor technical SSM startup, shutdown, and malfunction NW, Washington, DC 20460; telephone TAC Texas Administrative Code improvements. We estimate that these number: (202) 564–1395; and email amendments will reduce emissions of The Court United States Court of Appeals address: [email protected]. for the District of Columbia Circuit hazardous air pollutants (HAP) from SUPPLEMENTARY INFORMATION: TOSHI target organ-specific hazard index this source category by 186 tons per year Preamble acronyms and tpy tons per year (tpy), which represents an approximate abbreviations. We use multiple UMRA Unfunded Mandates Reform Act 8 percent reduction of HAP emissions acronyms and terms in this preamble. URE unit risk estimate from the source category. While this list may not be exhaustive, to VCS voluntary consensus standard VOC volatile organic compound(s) DATES: This final rule is effective on July ease the reading of this preamble and for VPX vapor pressure 7, 2020. The incorporation by reference reference purposes, the EPA defines the (IBR) of certain publications listed in following terms and acronyms here: Background information. On October the rule is approved by the Director of 21, 2019, the EPA proposed revisions to the Federal Register as of July 7, 2020. ANSI American National Standards Institute the OLD NESHAP based on our RTR. In ADDRESSES: The EPA has established a APCD air pollution control device this action, we are finalizing decisions docket for this action under Docket ID ASTM American Society for Testing and and revisions for the rule. We No. EPA–HQ–OAR–2018–0074. All Materials summarize some of the more significant documents in the docket are listed on CAA Clean Air Act comments we timely received regarding the https://www.regulations.gov/ CARB California Air Resources Board the proposed rule and provide our website. Although listed, some CBI Confidential Business Information responses in this preamble. A summary CDX Central Data Exchange information is not publicly available, CEDRI Compliance and Emissions Data of all other public comments on the e.g., Confidential Business Information Reporting Interface proposal and the EPA’s responses to or other information whose disclosure is CF Code of Federal Regulations those comments is available in the restricted by statute. Certain other CMS continuous monitoring systems Summary of Public Comments and material, such as copyrighted material, CRA Congressional Review Act Responses for Risk and Technology is not placed on the internet and will be EPA Environmental Protection Agency Review for Organic Liquids Distribution publicly available only in hard copy ERT Electronic Reporting Tool (Non-Gasoline), Docket ID No. EPA– FTIR Fourier Transform Infrared (FTIR) form. Publicly available docket Spectroscopy HQ–OAR–2018–0074. A ‘‘track materials are available either HAP hazardous air pollutant(s) changes’’ version of the regulatory electronically through https:// HON National Emission Standards for language that incorporates the changes www.regulations.gov/, or in hard copy at Organic Hazardous Air Pollutants from the in this action is available in the docket.

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Organization of this document. The F. What other changes have been made to B. Executive Order 13771: Reducing information in this preamble is the NESHAP? Regulations and Controlling Regulatory organized as follows: G. What are the effective and compliance Costs dates of the standards? C. Paperwork Reduction Act (PRA) I. General Information IV. What is the rationale for our final D. Regulatory Flexibility Act (RFA) A. Does this action apply to me? decisions and amendments for the OLD E. Unfunded Mandates Reform Act B. Where can I get a copy of this document source category? (UMRA) and other related information? A. Residual Risk Review for the OLD F. Executive Order 13132: Federalism C. Judicial Review and Administrative Source Category G. Executive Order 13175: Consultation Reconsideration B. Technology Review for the OLD Source and Coordination With Indian Tribal II. Background Category Governments A. What is the statutory authority for this C. Amendments Pursuant to CAA Section H. Executive Order 13045: Protection of action? 112(d)(2) and (3) for the OLD Source Children From Environmental Health B. What is the OLD source category and Category Risks and Safety Risks how does the NESHAP regulate HAP D. Amendments Addressing Emissions I. Executive Order 13211: Actions emissions from the source category? During Periods of SSM Concerning Regulations That C. What changes did we propose for the E. Technical Amendments to the MACT Significantly Affect Energy Supply, Standards OLD source category in our October 21, Distribution, or Use V. Summary of Cost, Environmental, and 2019, RTR proposal? J. National Technology Transfer and Economic Impacts and Additional III. What is included in this final rule? Advancement Act (NTTAA) and 1 CFR Analyses Conducted Part 51 A. What are the significant changes since A. What are the affected facilities? K. Executive Order 12898: Federal Actions proposal? B. What are the air quality impacts? to Address Environmental Justice in B. What are the final rule amendments C. What are the cost impacts? Minority Populations and Low-Income based on the risk review for the OLD D. What are the economic impacts? Populations source category? E. What are the benefits? L. Congressional Review Act (CRA) C. What are the final rule amendments F. What analysis of environmental justice based on the technology review for the did we conduct? I. General Information OLD source category? G. What analysis of children’s D. What are the final rule amendments environmental health did we conduct? A. Does this action apply to me? pursuant to CAA Section 112(d)(2) and VI. Statutory and Executive Order Reviews (3) for the OLD source category? A. Executive Orders 12866: Regulatory Regulated entities. Categories and E. What are the final rule amendments Planning and Review and Executive entities potentially regulated by this addressing emissions during periods of Order 13563: Improving Regulation and action are shown in Table 1 of this SSM? Regulatory Review preamble.

TABLE 1—NESHAP AND INDUSTRIAL SOURCE CATEGORIES AFFECTED BY THIS FINAL ACTION

NESHAP and source category NAICS 1 code(s)

Organic Liquids Distribution (Non-Gasoline) ...... 3222, 3241, 3251, 3252, 3259, 3261, 3361, 3362, 3399, 4247, 4861, 4869, 4931, 5622. 1 North American Industry Classification System.

Table 1 of this preamble is not liquids in storage tanks not subject to B. Where can I get a copy of this intended to be exhaustive, but rather to other 40 CFR part 63 standards and document and other related provide a guide for readers regarding transfers into or out of the tanks from or information? entities likely to be affected by the final to cargo tanks, containers, and action for the source category listed. The pipelines. The types of organic liquids In addition to being available in the final standards are directly applicable to and emission sources covered by the docket, an electronic copy of this final the affected sources. Federal, state, OLD NESHAP are frequently found at action will also be available on the local, and tribal government entities are many types of facilities that are already internet. Following signature by the not affected by this final action. As subject to other NESHAP. If equipment EPA Administrator, the EPA will post a defined in the Initial List of Categories is in OLD service and is subject to copy of this final action at: https:// of Sources Under Section 112(c)(1) of another 40 CFR part 63 NESHAP, then www.epa.gov/stationary-sources-air- the Clean Air Act Amendments of 1990 that equipment is not subject to the pollution/organic-liquids-distribution- (see 57 FR 31576, July 16, 1992) and national-emission-standards-hazardous. Documentation for Developing the corresponding requirements in the OLD NESHAP. Following publication in the Federal Initial Source Category List, Final Register, the EPA will post the Federal Report (see EPA–450/3–91–030, July To determine whether your facility is Register version and key technical 1992), the OLD source category affected, you should examine the documents at this same website. includes, but is not limited to, those applicability criteria in the appropriate activities associated with the storage NESHAP. If you have any questions Additional information is available on and distribution of organic liquids other regarding the applicability of any aspect the RTR website at https:// than gasoline, at sites which serve as of this NESHAP, please contact the www.epa.gov/stationary-sources-air- distribution points from which organic appropriate person listed in the pollution/risk-and-technology-review- liquids may be obtained for further use preceding FOR FURTHER INFORMATION national-emissions-standards- and processing. CONTACT section of this preamble. hazardous. This information includes The OLD source category involves the an overview of the RTR program, and distribution of organic liquids into, out links to project websites for the RTR of, or within a source. The distribution source categories. activities include the storage of organic

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C. Judicial Review and Administrative cost, energy requirements, and non-air The residual risk review is required Reconsideration quality health and environmental within 8 years after promulgation of the Under the Clean Air Act (CAA) impacts). In developing MACT technology-based standards, pursuant to section 307(b)(1), judicial review of this standards, CAA section 112(d)(2) directs CAA section 112(f). In conducting the final action is available only by filing a the EPA to consider the application of residual risk review, if the EPA petition for review in the United States measures, processes, methods, systems, determines that the current standards Court of Appeals for the District of or techniques, including, but not limited provide an ample margin of safety to Columbia Circuit (the Court) by to, those that reduce the volume of or protect public health, it is not necessary September 8, 2020. Under CAA section eliminate HAP emissions through to revise the MACT standards pursuant 1 307(b)(2), the requirements established process changes, substitution of to CAA section 112(f). For more by this final rule may not be challenged materials, or other modifications; information on the statutory authority separately in any civil or criminal enclose systems or processes to for this rule, see 84 FR 56288, October proceedings brought by the EPA to eliminate emissions; collect, capture, or 21, 2019. treat HAP when released from a process, enforce the requirements. B. What is the OLD source category and stack, storage, or fugitive emissions Section 307(d)(7)(B) of the CAA how does the NESHAP regulate HAP point; are design, equipment, work further provides that only an objection emissions from the source category? to a rule or procedure which was raised practice, or operational standards; or with reasonable specificity during the any combination of the above. The EPA promulgated the OLD period for public comment (including For these MACT standards, the statute NESHAP on February 3, 2004 (69 FR any public hearing) may be raised specifies certain minimum stringency 5038). The standards are codified at 40 during judicial review. This section also requirements, which are referred to as CFR part 63, subpart EEEE. The OLD provides a mechanism for the EPA to MACT floor requirements, and which industry consists of facilities that store reconsider the rule if the person raising may not be based on cost and distribute organic liquids. The an objection can demonstrate to the considerations. See CAA section source category covered by this MACT Administrator that it was impracticable 112(d)(3). For new sources, the MACT standard currently includes 177 to raise such objection within the period floor cannot be less stringent than the facilities. As defined in the Initial List for public comment or if the grounds for emission control achieved in practice by of Categories of Sources Under Section such objection arose after the period for the best-controlled similar source. The 112(c)(1) of the Clean Air Act public comment (but within the time MACT standards for existing sources Amendments of 1990 (see 57 FR 31576, specified for judicial review) and if such can be less stringent than floors for new July 16, 1992) and Documentation for objection is of central relevance to the sources, but they cannot be less Developing the Initial Source Category outcome of the rule. Any person seeking stringent than the average emission List, Final Report (see EPA–450/3–91– to make such a demonstration should limitation achieved by the best- 030, July, 1992), the OLD source submit a Petition for Reconsideration to performing 12 percent of existing category includes, but is not limited to, the Office of the Administrator, U.S. sources in the category or subcategory those activities associated with the EPA, Room 3000, WJC South Building, (or the best-performing five sources for storage and distribution of organic 1200 Pennsylvania Ave. NW, categories or subcategories with fewer liquids other than gasoline, at sites that Washington, DC 20460, with a copy to than 30 sources). In developing MACT serve as distribution points from which both the person(s) listed in the standards, we must also consider organic liquids may be obtained for preceding FOR FURTHER INFORMATION control options that are more stringent further use and processing. The OLD source category involves the CONTACT section, and the Associate than the floor under CAA section distribution of organic liquids into, out General Counsel for the Air and 112(d)(2). We may establish standards of, or within a source. The distribution Radiation Law Office, Office of General more stringent than the floor, based on activities include the storage of organic Counsel (Mail Code 2344A), U.S. EPA, the consideration of the cost of liquids in storage tanks and transfers 1200 Pennsylvania Ave. NW, achieving the emissions reductions, any into or out of the tanks from or to cargo Washington, DC 20460. non-air quality health and environmental impacts, and energy tanks, containers, and pipelines that are II. Background requirements. not subject to other 40 CFR part 63 In the second stage of the regulatory A. What is the statutory authority for standards. Organic liquids are any crude process, the CAA requires the EPA to this action? oils downstream of the first point of undertake two different analyses, which custody transfer and any non-crude oil Section 112 of the CAA establishes a we refer to as the technology review and liquid that contains at least 5 percent by two-stage regulatory process to address the residual risk review. Under the weight of any combination of the 98 emissions of HAP from stationary technology review, we must review the HAP listed in Table 1 to 40 CFR part 63, sources. In the first stage, we must technology-based standards and revise subpart EEEE. For the purposes of the identify categories of sources emitting them ‘‘as necessary (taking into account OLD NESHAP, organic liquids do not one or more of the HAP listed in CAA developments in practices, processes, include gasoline, kerosene (No. 1 section 112(b) and then promulgate and control technologies)’’ no less distillate oil), diesel (No. 2 distillate oil), technology-based NESHAP for those frequently than every 8 years, pursuant asphalt, and heavier distillate oil and sources. ‘‘Major sources’’ are those that to CAA section 112(d)(6). Under the fuel oil, fuel that is consumed or emit, or have the potential to emit, any residual risk review, we must evaluate dispensed on the plant site, hazardous single HAP at a rate of 10 tpy or more, the risk to public health remaining after waste, wastewater, ballast water, or any or 25 tpy or more of any combination of application of the technology-based HAP. For major sources, these standards standards and revise the standards, if 1 The Court has affirmed this approach of are commonly referred to as maximum necessary, to provide an ample margin implementing CAA section 112(f)(2)(A): NRDC v. achievable control technology (MACT) of safety to protect public health or to EPA, 529 F.3d 1077, 1083 (D.C. Cir. 2008) (‘‘If EPA determines that the existing technology-based standards and must reflect the prevent, taking into consideration costs, standards provide an ‘ample margin of safety,’ then maximum degree of emission reductions energy, safety, and other relevant the Agency is free to readopt those standards during of HAP achievable (after considering factors, an adverse environmental effect. the residual risk rulemaking.’’).

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non-crude liquid with an annual CFR part 63, subpart PP or operate a Petroleum Refineries NESHAP (40 CFR average true vapor pressure less than 0.7 vapor balancing system. part 63, subpart CC) and National kilopascals (0.1 psia). The OLD The NESHAP requires leak detection Emission Standards for Organic NESHAP applies only to major sources and repair for certain equipment Hazardous Air Pollutants from the of HAP (i.e., sources that have the components associated with storage Synthetic Organic Chemical potential to emit 10 tpy of any single tanks and transfer racks subject to this Manufacturing Industry (‘‘HON,’’ 40 HAP or 25 tpy of combined HAP). subpart and for certain equipment CFR part 63, subpart G) where the Facilities subject to this NESHAP fall components associated with pipelines thresholds are lower; into two types, either (1) petrochemical between such storage tanks and transfer • add a requirement for leak detection terminals primarily in the business of racks. The components are specified in and repair (LDAR), using EPA Method storing and distributing organic liquids the definition of ‘‘Equipment leak 21 with a 500 ppm leak definition for or (2) chemical production facilities or components’’ at 40 CFR 63.2406 and fittings on fixed roof storage tanks (e.g., other manufacturing facilities that either include pumps, valves, and sampling access hatches) that are not subject to have a distribution terminal not subject connection systems in organic liquid the 95 percent by weight control to another major source NESHAP or service. The owner or operator is requirements; • have a few miscellaneous storage tanks required to comply with the revise the equipment leak or transfer racks that are not otherwise requirements for pumps, valves, and requirements to add connectors to the subject to another major source sampling connections in 40 CFR part 63, monitored equipment component types NESHAP. subpart TT (control level 1), subpart UU at a leak definition of 500 ppm (i.e., (control level 2), or subpart H. This requiring connectors to be compliant Equipment controlled by the OLD requires the use of EPA Method 21 of with either 40 CFR part 63, subparts UU NESHAP are storage tanks, transfer appendix A–7 to 40 CFR part 60 (‘‘EPA or H); and operations, transport vehicles while Method 21’’) to determine the • add an optional implementation of being loaded, and equipment leak concentration of any detected leaks and a fenceline monitoring program in lieu components that have the potential to to repair the component if the measured of the proposed technology review leak such as valves, pumps, and concentration exceeds the definition of amendments for storage tanks and sampling connections. Table 2 to a leak within the applicable subpart. equipment leaks discussed above. subpart EEEE of 40 CFR part 63 contains Pressure relief devices (PRDs) on In the proposed rule, we proposed the criteria for control of storage tanks vapor balancing systems are required to under CAA section 112(d)(2) and (3) to and transfer racks. If a storage tank of a be monitored quarterly for leaks. An amend the operating and monitoring certain threshold capacity stores crude instrument reading of 500 parts per requirements for flares used as air oil or a non-crude organic liquid having million (ppm) or greater defines a leak. pollution control devices (APCDs) in the a threshold sum of partial pressures of Leaks must be repaired within 5 days. OLD source category as follows: HAP, then compliance options are The types of organic liquids and • We proposed to add requirements at either to (1) route emissions through a emission sources covered by the OLD 40 CFR 63.2380 to directly apply the closed vent system to a control device NESHAP are frequently found at many Petroleum Refinery Sector Rule (PRSR) that achieves a 95-percent control types of facilities that are already flare definitions and requirements in 40 efficiency or (2) comply with work subject to other NESHAP. If equipment CFR part 63, subpart CC to flares in the practice standards of 40 CFR part 63, is in OLD service and is subject to OLD source category, with certain subpart WW (i.e., operate the tank with another 40 CFR part 63 NESHAP, then clarifications and exemptions; a compliant internal floating roof or a that equipment is not subject to the • we proposed to amend compliant external floating roof), route corresponding requirements in the OLD requirements that flares used as APCDs emissions through a closed vent system NESHAP. in the OLD source category operate pilot to a fuel gas system of a process, or flame systems continuously when route emissions through a vapor C. What changes did we propose for the organic HAP emissions are routed to the balancing system that meets OLD source category in our October 21, flare. Specifically, we proposed to requirements specified in 40 CFR 2019, RTR proposal? remove the cross-reference to the 63.2346(a)(4). Storage tanks storing non- On October 21, 2019, the EPA General Provisions and instead cross- crude organic liquids having a sum of published a proposed rule in the reference 40 CFR part 63, subpart CC to partial pressures of HAP of at least 11.1 Federal Register for the OLD NESHAP, include in the OLD NESHAP the psia do not have the option to comply 40 CFR part 63, subpart EEEE, that took existing provisions that flares operate using an internal or external floating into consideration the RTR analyses. We with a pilot flame at all times and be roof tank. Table 2 to subpart EEEE of 40 proposed to find that the risks from the continuously monitored for a pilot CFR part 63 contains the criteria for source category are acceptable, the flame using a thermocouple or any other control of transfer racks, which are current standards provide an ample equivalent device. We also proposed to based on the facility-wide organic liquid margin of safety to protect public health, add a continuous compliance measure loading volume for organic liquids and more stringent standards are not that would consider each 15-minute having threshold HAP content necessary to prevent an adverse block when there is at least 1 minute expressed in percent HAP by weight of environmental effect. In the proposed where no pilot flame is present when the organic liquid. For transfer racks rule, we proposed under CAA section regulated material is routed to the flare required to control HAP emissions, the 112(d)(6) to amend the requirements for as a deviation from the standard; standards are either to (1) route storage tanks and equipment leaks and • we proposed to amend emissions through a closed vent system also provided an alternative fenceline requirements that flares used as APCDs to a control device that achieves 98- monitoring program in the OLD source in the OLD source category operate with percent control efficiency or (2) operate category as follows: no visible emissions (except for periods a compliant vapor balancing system. • Revise the average true vapor not to exceed a total of 5 minutes during Transfer rack systems that fill containers pressure thresholds of the OLD storage any 2 consecutive hours) when organic of 55 gallons or greater are required to tanks for existing sources requiring HAP emissions are routed to the flare. comply with specific provisions of 40 control to align with those of the Specifically, we proposed to remove the

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cross-reference to the General per standard cubic foot during any 15- the tank is not storing ‘‘Organic liquids’’ Provisions and instead cross-reference minute period for steam-assisted, air- and, therefore, is not subject to the rule; 40 CFR part 63, subpart CC to include assisted, and non-assisted flares used as • amend the definition of the term the limitation on visible emissions. We APCDs in the OLD source category. We ‘‘Annual average true vapor pressure’’ at also proposed to clarify that the initial also proposed to allow engineering 40 CFR 63.2406 by replacing one of the 2-hour visible emissions demonstration estimates to characterize the amount of acceptable methods for the should be conducted the first time gas flared and the amount of assist gas determination of vapor pressure. We regulated materials are routed to the (if applicable) introduced into the proposed to replace the method, ASTM flare. With regard to continuous system. Finally, we proposed that D2879, ‘‘Standard Test Method for compliance with the visible emissions owners or operators of flares in the OLD Vapor Pressure-Temperature limitation, we proposed daily visible source category that use grab sampling Relationship and Initial Decomposition emissions monitoring for whenever and engineering calculations to Temperature of Liquids by regulated material is routed to the flare. determine compliance must still assess Isoteniscope,’’ with the method, ASTM On days the flare receives regulated compliance with the NHVcz operating D6378–18a, ‘‘Standard Test Method for material, we proposed that owners or limit on a 15-minute block average Determination of Vapor Pressure (VPX) operators of flares monitor visible using the equation at 40 CFR of Petroleum Products, Hydrocarbons, emissions at a minimum of once per day 63.670(m)(1) and cumulative volumetric and Hydrocarbon-Oxygenate Mixtures using an observation period of 5 flows of flare vent gas, assist steam, and (Triple Expansion Method).’’ Other minutes and EPA Method 22. premix assist air; and monitoring method clarifications and Additionally, whenever regulated • except for the visible emissions incorporations by references were also material is routed to the flare and there operating limits, we proposed to use a proposed; and are visible emissions from the flare, we 15-minute block averaging period for • add a definition of the term proposed that another 5-minute visible each proposed flare operating parameter ‘‘Condensate’’ and to specify its emissions observation period be (i.e., presence of a pilot flame, flare tip regulation in this rule in the same way performed using EPA Method 22, even velocity, and NHVcz) to ensure that the crude oil is regulated at the definition if the required daily visible emissions flare is operated within the appropriate of the term ‘‘Organic liquid’’ and at monitoring has already been performed. operating conditions. Tables 2 and 2b to 40 CFR part 63, If an employee observes visible In addition to the amendments subpart EEEE. emissions, then the owner or operator of proposed for flares used as APCDs, the In addition to the revisions proposed the flare would perform a 5-minute EPA EPA proposed to clarify that PRDs on above, we also proposed several Method 22 observation to check for vapor return lines of a vapor balancing editorial clarification and minor compliance upon initial observation or system are also subject to the vapor corrections to 40 CFR part 63, subpart notification of such event. In addition, balancing system requirements of 40 EEEE. in lieu of daily visible emissions CFR 63.2346(a)(4)(iv). III. What is included in this final rule? observations performed using EPA We also proposed to: Method 22, we proposed that owners or • Revise the SSM provisions of the This action finalizes the EPA’s operators be allowed to use video MACT rule in order to ensure that they determinations pursuant to the RTR surveillance cameras. We also proposed are consistent with the Court decision in provisions of CAA section 112 for the to extend the observation period for a Sierra Club v. EPA, 551 F. 3d 1019 (D.C. OLD source category and amends the flare to 2 hours whenever visible Cir. 2008); OLD NESHAP based on those • emissions are observed for greater than add the requirement that owners or determinations. This action also 1 continuous minute during any of the operators of OLD facilities submit finalizes other changes to the NESHAP, required 5-minute observation periods; electronic copies of required including adding requirements and • we proposed the consolidation of performance test reports, performance clarifications for periods of SSM and provisions related to flare tip velocity. evaluation reports, compliance reports, bypasses, revising the operating and Specifically, we proposed to remove the NOCS reports, and fenceline monitoring monitoring requirements for flares used cross-reference to the General reports through the EPA’s Central Data as APCDs; adding provisions for Provisions and instead cross-reference Exchange (CDX) using the Compliance electronic reporting of performance test 40 CFR part 63, subpart CC to and Emissions Data Reporting Interface results and reports, performance consolidate the specification of (CEDRI); evaluation reports, compliance reports, maximum flare tip velocity into the • add requirements for testing and and NOCS reports; and other minor OLD NESHAP as a single equation, recordkeeping to confirm the annual editorial and technical changes. This irrespective of flare type (i.e., steam- average true vapor pressure at least action also reflects several changes to assisted, air-assisted, or non-assisted). every 5 years, or with a change of the October 21, 2019, RTR proposal in We also proposed not to include the commodity in the tank’s contents, consideration of comments received special flare tip velocity equation in the whichever occurs first, to ensure the during the public comment period as General Provisions at 40 CFR tank’s applicability and confirm that it described in section IV of this preamble. 63.11(b)(6)(i)(A) for non-assisted flares should not be subject to the 95-percent with hydrogen content greater than 8 control requirements of the regulation; A. What are the significant changes percent; • add requirements that the contents since proposal? • in lieu of requiring compliance with of tanks that are claimed to be not This section introduces the significant the operating limits for net heating subject to the OLD NESHAP because changes to the OLD NESHAP value of the flare vent gas in the General they contain less than 5-percent HAP amendments made since proposal being Provisions, we proposed to cross- (and, therefore, do not meet the promulgated. These changes are reference 40 CFR part 63, subpart CC to definition of ‘‘Organic liquids’’ within discussed in further detail in section IV include in the OLD NESHAP a single the OLD NESHAP) should be tested of this preamble. minimum operating limit for the net every 5 years, or with a change of • We are not finalizing the proposed heating value in the combustion zone commodity in the tank’s contents, requirements for LDAR using EPA gas (NHVcz) of 270 British thermal units whichever occurs first, to confirm that Method 21 with a 500 ppm leak

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definition for fittings on fixed roof C. What are the final rule amendments the Court vacated portions of two storage tanks (e.g., access hatches) that based on the technology review for the provisions in the EPA’s CAA section are not subject to the 95 percent by OLD source category? 112 regulations governing the emissions weight control requirements in the final We determined that there are of HAP during periods of SSM. rule; developments in practices, processes, Specifically, the Court vacated the SSM exemption contained in 40 CFR • we are not finalizing the proposal to and control technologies that warrant 63.6(f)(1) and (h)(1), holding that under add connectors to the monitored revisions to the MACT standards for this section 302(k) of the CAA, emissions equipment component types at a leak source category. Therefore, to satisfy the standards or limitations must be definition of 500 ppm (i.e., requiring requirements of CAA section 112(d)(6), continuous in nature and that the SSM connectors to be compliant with either we are revising the MACT standards to exemption violates the CAA’s 40 CFR part 63, subparts UU or H); include revised average true vapor requirement that some CAA section 112 • pressure thresholds of the OLD storage we are not finalizing the option of standards apply continuously. As tanks for existing sources, requiring allowing for a fenceline monitoring detailed in section IV.E.1 of the control to align with those of the program in lieu of other requirements; proposal preamble (84 FR 56318, • we are finalizing standards for Petroleum Refineries NESHAP (40 CFR October 21, 2019), the OLD NESHAP storage tank degassing emission points part 63, subpart CC) and HON (40 CFR requires that the standards apply at all during periods of SSM to ensure a CAA part 63, subpart G) where the thresholds times (see 40 CFR 63.2350(a)), section 112 standard applies ‘‘at all are lower. consistent with the Court decision in times;’’ and Section IV.B.3 of this preamble Sierra Club v. EPA, 551 F. 3d 1019 (D.C. provides a summary of key comments • we are not finalizing the proposed Cir. 2008). We determined that facilities we received on the technology review in this source category can generally required testing and recordkeeping for and our responses. emission sources not requiring control meet the applicable OLD NESHAP to confirm the annual average true vapor D. What are the final rule amendments standards at all times, including periods pressure at least every 5 years, or with pursuant to CAA Section 112(d)(2) and of startup and shutdown. Where a change of commodity in the tank’s (3) for the OLD source category? appropriate, and as discussed in section contents, whichever occurs first, to III.C of this preamble, we are also The EPA is finalizing the changes finalizing alternative standards in this ensure the tank’s applicability and proposed pursuant to CAA section confirm that it should not be subject to preamble for storage tank degassing 112(d)(2) and (3). Consistent with the emission points during periods of SSM the 95 percent control requirements of October 21, 2019, RTR proposal, we are the regulation. Further, we are not to ensure a CAA section 112 standard revising monitoring and operational applies ‘‘at all times.’’ Other than the finalizing, as proposed, a requirement requirements for flares to ensure that that the contents of tanks that are storage tank degassing emission point OLD facilities that use flares as APCDs discussed in section III.C of this claimed to be not subject to the OLD meet the MACT standards at all times NESHAP because they contain less than preamble, the EPA determined that no when controlling HAP emissions. In additional standards are needed to 5 percent HAP (and, therefore, do not addition, we are adding provisions and meet the definition of ‘‘Organic liquids’’ address emissions during these periods. clarifications for periods of SSM and Further, the EPA is not finalizing within the OLD NESHAP) should be bypasses, including PRD releases, standards for malfunctions. As tested every 5 years, or with a change bypass lines on closed vent systems, discussed in the proposal preamble (84 of commodity in the tank’s contents, maintenance activities, and certain FR 56318, October 21, 2019), the EPA whichever occurs first, to confirm that gaseous streams routed to a fuel gas interprets CAA section 112 as not the tank is not storing ‘‘organic liquids’’ system to ensure that CAA section 112 requiring emissions that occur during and, therefore, is not subject to the rule. standards apply continuously, periods of malfunction to be factored B. What are the final rule amendments consistent with Sierra Club v. EPA 551 into development of CAA section 112 based on the risk review for the OLD F. 3d 1019 (D.C. Cir. 2008). Based on standards, although the EPA has the source category? comments received on the proposed discretion to set standards for rulemaking, we are also adding a malfunctions where feasible. Refer to This section introduces the final standard for storage tank degassing for section IV.E.1 of the proposal preamble amendments to the OLD NESHAP being storage tanks subject to the control (84 FR 56318, October 21, 2019) for promulgated pursuant to CAA section requirements in Tables 2 and 2b to 40 further discussion of the EPA’s rationale 112(f). The EPA proposed no changes to CFR part 63, subpart EEEE. for the decision not to set standards for the MACT standards based on the risk Detailed changes and associated malfunctions, as well as a discussion of review conducted pursuant to CAA rationale regarding flares and PRDs are the actions a source could take in the section 112(f). In this action, we are set forth in the proposed rule. See 84 FR unlikely event that a source fails to finalizing our proposed determination 56302 through 56306, October 21, 2019. comply with the applicable CAA section that risks from this source category are Section IV.C.3 of this preamble provides 112(d) standards as a result of a acceptable, the standards provide an a summary of key comments we malfunction event, given that ample margin of safety to protect public received on the CAA section 112(d)(2) administrative and judicial procedures health, and that more stringent and (3) provisions and our responses. for addressing exceedances of the standards are not necessary to prevent standards fully recognize that violations E. What are the final rule amendments an adverse environmental effect. See may occur despite good faith efforts to addressing emissions during periods of section 3 of the Summary of Public comply and can accommodate those SSM? Comments and Responses for the Risk situations. and Technology Review for Organic We are finalizing the proposed As is explained in more detail below, Liquids Distribution (Non-Gasoline), amendments to the OLD NESHAP to we are finalizing revisions to the available in the docket for this action for remove and revise provisions related to General Provisions table to 40 CFR part comments we received regarding risk SSM. In its 2008 decision in Sierra Club 63, subpart EEEE, to eliminate review and our responses. v. EPA, 551 F.3d 1019 (D.C. Cir. 2008), requirements that include rule language

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providing an exemption for periods of that performance test results collected preamble provides a summary of key SSM. Additionally, we are finalizing our using test methods that are supported by comments we received on these proposal to eliminate language related the EPA’s Electronic Reporting Tool provisions and our responses. to SSM that treats periods of startup and (ERT) as listed on the ERT website 2 at G. What are the effective and shutdown the same as periods of the time of the test be submitted in the compliance dates of the standards? malfunction, as explained further format generated through the use of the below. As discussed in the proposal ERT and that other performance test The revisions to the OLD NESHAP preamble, these revisions are consistent results be submitted in portable standards being promulgated in this with the requirement in 40 CFR document format (PDF) using the action are effective on July 7, 2020. 63.2350(a) that the standards apply at attachment module of the ERT. From our assessment of the timeframe all times. Similarly, performance evaluation needed for implementing the entirety of Also, based on comments received results of continuous emissions the revised requirements (see 84 FR during the public comment period, we monitoring systems (CEMS) measuring 56324 and 56325, October 21, 2019), the are revising the proposed requirements relative accuracy test audit pollutants EPA proposed a period of 3 years to be of 40 CFR 63.2378(e) for periods of that are supported by the ERT at the the most expeditious compliance period planned routine maintenance of the time of the test must be submitted in the practicable. No opposing comments control device to allow tank breathing format generated through the use of the were received during the public losses to be consistent with our intent ERT and other performance evaluation comment period on the length of the at proposal (see 84 FR 56323, October results be submitted in PDF using the compliance period and we are finalizing 21, 2019), and we are revising 40 CFR attachment module of the ERT. The the 3-year period as proposed. Thus, the 63.2346(l) to sufficiently address the final rule requires that NOCS reports be compliance date of the final SSM exemption provisions from submitted as a PDF upload in CEDRI. amendments for all existing affected subparts referenced by the OLD For compliance reports, the final rule sources and all new affected sources NESHAP standards (such as 40 CFR part requires that owners or operators use that commence construction or 63, subparts SS, TT, and UU) that are no the appropriate spreadsheet template to reconstruction on or before October 21, longer applicable. Finally, we are submit information to CEDRI. The final 2019, is no later than 3 years after the extending the compliance date of version of the template for these reports effective date of the final rule. removing the portion of the ‘‘deviation’’ will be located on the CEDRI website.3 Furthermore, as discussed in sections definition in 40 CFR 63.2406 that We also are finalizing, as proposed, III.C and D of this preamble, we are addresses SSM periods as being provisions that allow facility operators adding a standard for storage tank applicable to 3 years after publication of the ability to seek extensions for degassing for storage tanks subject to the the final rule instead of 180 days after submitting electronic reports for control requirements in Tables 2 and 2b publication of the final rule in the circumstances beyond the control of the to 40 CFR part 63, subpart EEEE since Federal Register to provide a consistent facility, i.e., for a possible outage in the degassing is considered a SSM event for compliance date for all final rule SSM CDX or CEDRI or for a force majeure storage tanks. The provisions being provisions due to the addition of the event in the time just prior to a report’s finalized are similar to the requirements tank degassing requirements discussed due date, as well as the process to assert promulgated in the Petroleum Refineries in section IV.C of this preamble. See such a claim. NESHAP. As we discovered during the section 10.1 of the Summary of Public We are finalizing the revision of 40 Petroleum Refineries NESHAP Comments and Responses for the Risk CFR 63.2354(c) to add ASTM D6886–18, rulemaking, the challenges faced by and Technology Review for Organic ‘‘Standard Test Method for affected sources in complying with Liquids Distribution (Non-Gasoline), Determination of the Weight Percent these requirements necessitated available in the docket for this action, Individual Volatile Organic Compounds additional compliance time from what for a summary of the significant in Waterborne Air-Dry Coatings by Gas was promulgated, eventually having to comments we received on the SSM Chromatography,’’ as another acceptable move the original compliance date of provisions and our responses. method for the determination of HAP these provisions from February 1, 2016, F. What other changes have been made content of an organic liquid. We are also to August 1, 2018, an additional 2 and 4 to the NESHAP? finalizing the replacement of method a half years. Therefore, the 3-year ASTM D2879 with method ASTM compliance date that was proposed for This rule also finalizes, as proposed, the OLD NESHAP provides a consistent revisions to several other NESHAP D6378–18a as an acceptable method for determination of whether a total vapor time allowance to OLD sources as was requirements. To increase the ease and needed for petroleum refineries to fully efficiency of data submittal and data pressure (and, therefore, the sum total of Table 1 to 40 CFR part 63, subpart EEEE implement the final amendments to this accessibility, we are finalizing a rule. We have also revised the effective requirement that owners or operators of HAP) is below the threshold level requiring control for a storage tank. date of removing the portion of the facilities in the OLD source category ‘‘deviation’’ definition in 40 CFR submit electronic copies of required Finally, we are finalizing all of the revisions that we proposed for clarifying 63.2406 that addresses SSM periods as performance test reports, performance being applicable 3 years after evaluation reports, compliance reports, text or correcting typographical errors, grammatical errors, and cross-reference publication of the final rule in the and NOCS reports through the EPA’s Federal Register to provide a consistent CDX using CEDRI. A description of the errors. These editorial corrections and clarifications are summarized in 84 FR compliance date due to the addition of electronic data submission process is the tank degassing requirements. For all provided in the memorandum, 56323 through 56324 and Table 9 of the proposal. Section IV.E.3 of this new affected sources that commenced Electronic Reporting Requirements for construction or reconstruction after New Source Performance Standards 2 October 21, 2019, the effective date is (NSPS) and National Emission https://www.epa.gov/electronic-reporting-air- emissions/electronic-reporting-tool-ert. Standards for Hazardous Air Pollutants 3 https://www.epa.gov/electronic-reporting-air- 4 See https://www.epa.gov/sites/production/files/ (NESHAP) Rules, available in the docket emissions/compliance-and-emissions-data- 2018-07/documents/petrefinery_compliance_ext_ for this action. The final rule requires reporting-interface-cedri. factsheet.pdf.

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July 7, 2020, or upon initial startup, EPA’s responses can be found in the regarding risk acceptability and ample whichever is later. comment summary and response margin of safety, in the October 21, document available in the docket. IV. What is the rationale for our final 2019, proposed rule for 40 CFR part 63, decisions and amendments for the OLD A. Residual Risk Review for the OLD subpart EEEE (84 FR 56288). The results source category? Source Category of the risk assessment for the proposal are presented briefly below and in more For each issue, this section provides 1. What did we propose pursuant to detail in the document, Residual Risk a description of what we proposed and CAA section 112(f) for the OLD source Assessment for the Organic Liquids what we are finalizing for the issue, the category? EPA’s rationale for the final decisions Distribution (Non-Gasoline) Source and amendments, and a summary of key Pursuant to CAA section 112(f), the Category in Support of the 2020 Risk comments and responses. For all EPA conducted a residual risk review and Technology Review Final Rule, comments not discussed in this and presented the results of this review, which is available in the docket for this preamble, comment summaries and the along with our proposed decisions rulemaking.

TABLE 2—ORGANIC LIQUIDS DISTRIBUTION (NON–GASOLINE) INHALATION RISK ASSESSMENT RESULTS AS PROPOSED

Maximum Population at Annual Maximum Number of facili- individual increased chronic 4 1 cancer incidence Maximum screening acute noncancer HQ ties cancer risk risk of cancer (cases per year) noncancer (in 1 million) 2 ≥1-in-1 million TOSHI 3

157 ...... 20 350,000 0.03 0.4 HQREL = 1 (toluene, formaldehyde, and chloroform). 1 Number of facilities evaluated in the risk analysis. This number is less than the 173 existing facilities identified in the source category be- cause OLD emission points could not be identified at all facilities. This is explained in the Data Quality memorandum. For this category, allow- able emissions are assumed to equal actual emissions. 2 Maximum individual excess lifetime cancer risk due to HAP emissions from the source category. 3 Maximum target organ-specific hazard index (TOSHI). The target organ system with the highest TOSHI for the source category is respiratory. 4 The maximum estimated acute exposure concentration was divided by available short-term threshold values to develop an array of hazard quotient (HQ) values. HQ values shown use the lowest available acute threshold value, which in most cases is the reference exposure level (REL). When an HQ exceeds 1, we also show the HQ using the next lowest available acute dose-response value.

The results of the proposed inhalation noncancer, the Tier 2 screening value considered the costs, technological risk assessment, as shown in Table 2 of for both cadmium and mercury was less feasibility, and other relevant factors this preamble, indicate the estimated than 1. There were no exceedances of related to emissions control options that cancer maximum individual risk (MIR) the lead National Ambient Air Quality might reduce risk associated with is 20-in-1 million, with 1,3-butadiene Standards (NAAQS). emissions from the source category. We from equipment leaks as the major The ecological risk screening proposed that additional emissions contributor to the risk. At proposal, the assessment indicated all modeled points controls for the OLD source category are total estimated cancer incidence from were below the Tier 1 screening not necessary to provide an ample this source category was estimated to be thresholds based on actual and margin of safety to protect public health 0.03 excess cancer cases per year, or one allowable emissions of arsenic, (section IV.C.2 of proposal preamble, 84 excess case every 33 years. cadmium, mercury, hydrochloric acid, FR 56310, October 21, 2019). Approximately 350,000 people were and hydrofluoric acid. For POM At proposal, we also evaluated the estimated to face an increased cancer emissions, one facility did have a Tier risk from whole facility emissions in risk at or above 1-in-1 million due to 1 exceedance for a sediment community order to put the risks from the source inhalation exposure to actual HAP no-effect level by a maximum screening category in context. The maximum emissions from this source category. At value of 6. There were no exceedances lifetime individual cancer risk based on proposal, the estimated maximum of the secondary lead NAAQS. whole facility emissions was estimated chronic noncancer TOSHI from The EPA considered all health risk to be 2,000-in-1 million at proposal, inhalation exposure for this source factors, including those shown in Table with ethylene oxide from a non-category category was 0.4. The screening 2 of this preamble, in our risk source driving the risk. At proposal, the assessment of worst-case inhalation acceptability determination and maximum chronic noncancer hazard impacts indicated a worst-case proposed that the risks posed by the index based on whole facility emissions maximum acute HQ of 1 for toluene, OLD source category are acceptable was estimated to be 10 (for the kidney) formaldehyde, and chloroform based on (section IV.C.1 of proposal preamble, 84 driven by emissions of trichloroethylene the 1-hour REL for each pollutant. FR 56309, October 21, 2019). from equipment leaks in the solvent At proposal, potential multipathway We then considered whether the recovery operations at a plastic parts human health risks were estimated existing MACT standards provide an manufacturing facility, which are non- using a three-tier screening assessment ample margin of safety to protect public category sources. of the HAP known to be persistent and health and whether, taking into 2. How did the risk review change for bio-accumulative in the environment consideration costs, energy, safety, and the OLD source category? emitted by facilities in this source other relevant factors, standards are category. The only pollutants with required to prevent an adverse We have not changed any aspect of elevated Tier 1 and Tier 2 screening environmental effect. In considering the risk assessment since the October 21, 2019 RTR proposal (84 FR 56288) for values were polycyclic organic matter whether the standards are required to 5 (POM) (cancer). The Tier 2 screening provide an ample margin of safety to the OLD source category. value for POM was 6, which means that protect public health, we used the same 5 We note that, due to comments, there are four we were confident that the cancer risk risk factors that we considered for our fewer existing OLD affected sources now than at is lower than 6-in-1 million. For acceptability determination and also Continued

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3. What key comments did we receive that considers all health information, pressure thresholds of the OLD storage on the risk review, and what are our including risk estimation uncertainty, tanks for existing sources requiring responses? and includes a presumptive limit on control to align with those of the We received comments in support of MIR of approximately 1-in-10 Petroleum Refineries NESHAP (40 CFR and against the proposed residual risk thousand’’ (see 54 FR 38045, September part 63, subpart CC) and HON (40 CFR review and our determination that no 14, 1989). We weigh all health risk part 63, subpart G) where the thresholds revisions were necessary under CAA factors in our risk acceptability are lower; and (2) in addition to section 112(f)(2) for the OLD source determination, including the cancer requirements specified in option 1, category. Generally, the comments that MIR, cancer incidence, the maximum requiring LDAR using EPA Method 21 were not supportive of the cancer TOSHI, the maximum acute with a 500 ppm leak definition for determination from the risk reviews noncancer HQ, the extent of noncancer fittings on fixed roof storage tanks (e.g., suggested changes to the underlying risk risks, the distribution of cancer and access hatches) that are not subject to assessment methodology. For example, noncancer risks in the exposed the 95 percent by weight control some commenters stated that the EPA population, and the risk estimation requirements. uncertainties. should lower the acceptability We proposed option 1 (lower average benchmark so that risks below 100-in-1 Since proposal, neither the risk assessment nor our determinations vapor pressure thresholds for control) as million are unacceptable, include a development in practices, processes, emissions outside of the source regarding risk acceptability, ample and control technologies for storage categories in question in the risk margin of safety, or adverse tanks because it reflects requirements assessment and assume that HAP environmental effects have changed. For and applicability thresholds that are without dose-response values should be the reasons explained in the proposed included in the risk assessment. After rule, we determined that the risks from widely applicable to existing tanks that review of all the comments received, we the OLD source category are acceptable, are often collocated with OLD sources determined that no changes were the current standards provide an ample and that have been found to be cost necessary. The comments and our margin of safety to protect public health, effective for organic liquid storage tanks. and more stringent standards are not specific responses can be found in the We did not propose revisions to the necessary to prevent an adverse document, Summary of Public OLD NESHAP applicability thresholds environmental effect. Therefore, we are Comments and Responses for the Risk for new sources, as they were already not making any revisions to the existing and Technology Review for Organic more stringent than other similar rules. standards under CAA section 112(f)(2). Liquids Distribution (Non-Gasoline), Table 3 of this preamble lists the available in the docket for this action. B. Technology Review for the OLD proposed capacity and average true Source Category vapor pressure thresholds for control. 4. What is the rationale for our final As shown in Table 3 of this preamble, approach and final decisions for the risk 1. What did we propose pursuant to we also proposed to clarify that review? CAA section 112(d)(6) for the OLD condensate and crude oil are considered As noted in our proposal, the EPA source category? to be the same material with respect to sets standards under CAA section We proposed, as part of our OLD applicability (see section IV.E.3 of 112(f)(2) using ‘‘a two-step standard- technology review for storage tanks, the the October 21, 2019, proposal (84 FR setting approach, with an analytical first following emission reduction options: 56288) for more details on this step to determine an ‘acceptable risk’ (1) Revising the average true vapor clarification).

TABLE 3—NESHAP STORAGE TANK CAPACITY AND ANNUAL AVERAGE TRUE VAPOR PRESSURE THRESHOLDS FOR CONTROL UNDER PROPOSED CONTROL OPTION 1

Tank contents and average true vapor pressure of total Table 1 to Existing/new source and tank capacity subpart EEEE of 40 CFR part 63 organic HAP

Existing affected source with a capacity ≥18.9 cubic meters (5,000 gal- Not crude oil or condensate and if the annual average true vapor pres- lons) and <75.7 cubic meters (20,000 gallons). sure of the stored organic liquid is ≥27.6 kilopascals (4.0 psia) and <76.6 kilopascals (11.1 psia). The stored organic liquid is crude oil or condensate. Existing affected source with a capacity ≥75.7 cubic meters (20,000 Not crude oil or condensate and if the annual average true vapor pres- gallons) and <151.4 cubic meters (40,000 gallons). sure of the stored organic liquid is ≥13.1 kilopascals (1.9 psia) and <76.6 kilopascals (11.1 psia). The stored organic liquid is crude oil or condensate. Existing affected source with a capacity ≥151.4 cubic meters (40,000 Not crude oil or condensate and if the annual average true vapor pres- gallons) and <189.3 cubic meters (50,000 gallons). sure of the stored organic liquid is ≥5.2 kilopascals (0.75 psia) and <76.6 kilopascals (11.1 psia). The stored organic liquid is crude oil or condensate. Existing affected source with a capacity ≥189.3 cubic meters (50,000 Not crude oil or condensate and if the annual average true vapor pres- gallons). sure of the stored organic liquid is <76.6 kilopascals (11.1 psia). The stored organic liquid is crude oil or condensate. Reconstructed or new affected source with a capacity ≥18.9 cubic me- Not crude oil and if the annual average true vapor pressure of the ters (5,000 gallons) and <37.9 cubic meters (10,000 gallons). stored organic liquid is ≥27.6 kilopascals (4.0 psia) and <76.6 kilopascals (11.1 psia). The stored organic liquid is crude oil or condensate.

proposal (i.e., four sources we identified as subject rule). However, this change does not warrant an update to this analysis since proposal and has, to the OLD NESHAP are not in fact subject to that therefore, not been updated.

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TABLE 3—NESHAP STORAGE TANK CAPACITY AND ANNUAL AVERAGE TRUE VAPOR PRESSURE THRESHOLDS FOR CONTROL UNDER PROPOSED CONTROL OPTION 1—Continued

Tank contents and average true vapor pressure of total Table 1 to Existing/new source and tank capacity subpart EEEE of 40 CFR part 63 organic HAP

Reconstructed or new affected source with a capacity ≥37.9 cubic me- Not crude oil and if the annual average true vapor pressure of the ters (10,000 gallons) and <189.3 cubic meters (50,000 gallons). stored organic liquid is ≥0.7 kilopascals (0.1 psia) and <76.6 kilopascals (11.1 psia). The stored organic liquid is crude oil or condensate. Reconstructed or new affected source with a capacity ≥189.3 cubic Not crude oil and if the annual average true vapor pressure of the meters (50,000 gallons). stored organic liquid is <76.6 kilopascals (11.1 psia). The stored organic liquid is crude oil or condensate Existing, reconstructed, or new affected source meeting any of the ca- Not crude oil or condensate and if the annual average true vapor pres- pacity criteria specified above. sure of the stored organic liquid is ≥76.6 kilopascals (11.1 psia).

We further proposed option 2 (LDAR) At proposal, our technology review especially when evaluated based on the as an improvement in practices for for equipment leaks identified two expected reductions attributed to the storage tanks because these monitoring potential developments in LDAR emission inventory for fugitive HAP methods have been required by other practices and processes: (1) Adding emissions, and we determined that regulatory agencies since promulgation connectors to the monitored equipment option 2 was not cost effective for this of the OLD NESHAP to confirm the component types at a leak definition of source category. We proposed, pursuant vapor tightness of tank seals and gaskets 500 ppm (i.e., requiring connectors to be to CAA section 112(d)(6), revising the to ensure compliance with the compliant with either 40 CFR part 63, OLD NESHAP for equipment leaks to standards. As we noted at proposal, we subparts UU or H); and (2) eliminating reflect option 1. Details on the have observed leaks on roof deck fittings the option of 40 CFR part 63, subpart TT assumptions and methodologies for all through monitoring with EPA Method for valves, pumps, and sampling options that were evaluated at proposal 21 that could not be found with visual connection systems, essentially are provided in the memorandum, observation techniques (see 84 FR requiring compliance with 40 CFR part Clean Air Act Section 112(d)(6) 56311, October 21, 2019). 63, subpart UU or H. These two Technology Review for Equipment Leaks practices and processes were already in Proposed option 2 applied to any Located in the Organic Liquids effect at sources that are often collocated fixed roof storage tank that is part of an Distribution Source Category, available with OLD NESHAP sources, such as in OLD affected source that is not subject in the docket to this action. the National Emission Standards for to the 95 percent by weight and Organic Hazardous Air Pollutants for As part of the technology review, we equivalent controls according to the Equipment Leaks (40 CFR part 63, also considered options to reduce proposed thresholds above. The subpart H). Further, we found that emissions from transfer racks. We proposed requirements of option 2 several OLD sources were permitted evaluated the thresholds for control in applied to new and existing sources for using various state LDAR regulations the current rule against the 2012 storage tanks having a capacity of 3.8 that incorporate equipment leak proposed uniform standards for storage cubic meters (1,000 gallons) or greater provisions at the 40 CFR part 63, tanks and transfer operations (see that store organic liquids with an annual subpart UU requirement level or above Docket ID No. EPA–HQ–2010–0871) and average true vapor pressure of 10.3 and that also require connector found that the current thresholds for kilopascals (1.5 psia) or greater. monitoring as part of the facility’s air controls are equivalent to or more Based on our review of the costs and permit requirements. stringent than those proposed in 2012. emission reductions for each of the For equipment leaks control option 1, We also considered an option that storage tank options, we proposed that we considered that the baseline was that would apply 98 percent control control options 1 and 2 were cost- connectors were not controlled using a requirements for transfer racks to large effective strategies for further reducing LDAR program, since the current OLD throughput transfer racks transferring emissions from storage tanks at OLD NESHAP does not include them as organic liquid materials that are 5 facilities and proposed to revise the equipment to be monitored. For percent or less by weight HAP. OLD NESHAP requirements for storage equipment leaks control option 2, we Considering the costs of control and the tanks pursuant to CAA section considered lowering the leak definitions HAP emissions for these racks, this 112(d)(6). Other storage tank control for valves and pumps to account for the option was not found to be cost options beyond these two, including differences in 40 CFR part 63, subpart effective. Therefore, we did not propose installation of geodesic domes on UU from the requirements of 40 CFR any changes to the emission standard external floating roof tanks, were part 63, subpart TT. That is, valves in for transfer racks. For more information, considered during our technology light liquid service would drop from a see the Clean Air Act Section 112(d)(6) review but were not found to be leak definition of 10,000 parts per Technology Review for Transfer Racks generally cost effective were not million by volume (ppmv) to 500 ppmv, Located in the Organic Liquids proposed. Details on the assumptions and pumps would drop from 10,000 Distribution Source Category and methodologies for all options ppmv to 1,000 ppmv. memorandum in the docket for this evaluated at proposal are provided in Based on our review of the costs and the memorandum, Clean Air Act Section emission reductions for each of the action. 112(d)(6) Technology Review for Storage equipment leak options, we proposed Also, as part of the technology review, Tanks Located in the Organic Liquids that control option 1 was a cost-effective we evaluated developments in Distribution Source Category, available strategy for further reducing emissions processes, practices, and control in the docket to this action. from equipment leaks at OLD facilities, technologies for measuring and

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controlling fugitive emissions from responses are provided below in section concerns about additional costs that individual emission points at OLD IV.B.3 of this preamble. may be incurred to address safety and sources. We proposed a fenceline operational concerns, the EPA has 3. What key comments did we receive monitoring program, available to determined that the proposed LDAR for on the technology review, and what are fixed roof tanks not requiring control existing and new OLD facilities, in lieu our responses? of implementing the proposed does not appear to be a cost-effective technology review requirements Comment: Multiple commenters control option for this source category. discussed above for storage tanks and opposed the proposed LDAR Without appropriate data to better equipment leaks. Provisions of the requirements for storage tanks that are assess the emissions reductions and proposed fenceline monitoring program not required to have emissions controls costs of this option, and given the fact compliance alternative were described and are not currently subject to that uncontrolled fixed roof tanks are in detail in section IV.D.4 of the equipment standards that require they allowed to breathe and would not proposal preamble (see 84 FR 56313 be enclosed and leak tight. Several necessarily be vapor-tight, we now through 56318, October 21, 2019). commenters asserted that the EPA’s recognize that the proposed The EPA proposed this option for estimated emission reductions for the requirements could potentially trigger fenceline monitoring for several reasons: proposed storage tank leak detection leak protocols that we did not intend (1) There was concern that because of monitoring requirements overestimate when we proposed the change. the uncertainty surrounding estimated emission reductions that may be Therefore, we are not finalizing the attributed to these requirements. Many fugitive emissions from OLD operations, proposed requirements that require commenters observed that the EPA’s sources may be underestimating actual LDAR for tanks that are currently estimated volatile organic compound fugitive emissions from OLD operations; beneath the volumetric and vapor (VOC) reduction of 1.1 tpy includes (2) the proposed fenceline monitoring pressure thresholds for controlling emissions from the conservation vent, program would provide owners or emissions under the OLD standards. emergency pressure relief vent, and operators a flexible alternative to other valves/instruments that were Comment: Several commenters appropriately manage fugitive emissions estimated using equipment leak contended that the EPA cost- of HAP from OLD operations if they emission factors from the synthetic effectiveness analysis for connectors were significantly greater than estimated organic chemical manufacturing was flawed, and based on the EPA’s values; and (3) the proposed frequency industry (SOCMI) from the EPA’s backup document, connector of monitoring time-integrated samples Protocol for Equipment Leak Emission monitoring is not cost effective for OLD on a 2-week basis would provide an Estimates. The commenters stated that facilities and should not be finalized. opportunity for owners or operators to the SOCMI emission factors were The commenters stated that the backup detect and manage any spikes in fugitive developed for process equipment document for the EPA’s equipment leak emissions sooner than they might have containing material at pressures several analysis does not support the preamble been detected from equipment subject to times greater than an atmospheric conclusions. One commenter contended annual or quarterly monitoring in the storage tank, making their application to that the EPA overestimated the emission proposed amendments or from such tanks invalid. Commenters also reductions achievable from connector equipment that was not subject to stated that the costs for the proposed monitoring by applying emissions from equipment leak monitoring in the tank leak detection monitoring all equipment leaks to connectors and, proposed rule. requirements are underestimated. These thus, overestimating the emission The EPA proposed the fenceline commenters argued that the EPA did not reductions achievable. The commenter monitoring alternative and considered it consider operational and safety issues also alleged an error in the modeling file to be equivalent to the proposed that these requirements present. Several for one facility that accounted for half technology review revisions it would commenters noted that the language of the equipment leak emissions yet replace. Therefore, we proposed the effectively requires a technician to submitted a correction that stated there fenceline monitoring alternative under climb up to the roof of a tank and check is no OLD-affected equipment at the CAA section 112(d)(6) as an alternative the entire surface, stressing that these facility. Commenters also claimed the equivalent requirement to address small tanks were not built with the EPA underestimated the compliance fugitive emissions from OLD sources. intention of regular roof inspections and costs for connector monitoring. One commenter stated that the EPA’s cost 2. How did the technology review do not have the same structural integrity estimates failed to take into account that change for the OLD source category? as tanks that were designed with the intention of applying emission controls. connectors at OLD sources tend to be After consideration of comments and One commenter generally supported the more difficult to access than at reevaluation of our analyses at proposal, proposed revisions related to storage refineries or other sources. The we are not finalizing the following: tanks to incorporate developments that commenter further stated that for OLD Requiring LDAR using EPA Method 21 the EPA has deemed cost effective and facilities, for a high percentage of with a 500 ppm leak definition for advocated that the EPA require further connectors, equipment such as a fittings on fixed roof storage tanks (e.g., revisions to satisfy 42 U.S.C. 7412(d)(6). wheeled scissor-lift or hydraulic access hatches) that are not subject to Response: We have reviewed scaffold is required for monitoring the 95 percent by weight control commenters’ concerns and reevaluated access as well as a second technician for requirements in the final rule; adding the analyses for developing the safety reasons; and additional time is connectors to the monitored equipment proposed fixed roof tank LDAR required to move the equipment. Some component types at a leak definition of requirements and agree that the commenters asserted that the EPA also 500 ppm (i.e., requiring connectors to be emission reduction estimates serving as underestimated costs by compliant with either 40 CFR part 63, the basis for the proposed LDAR underestimating the monitoring subparts UU or H); or allowing the requirements were likely inaccurate for frequency allowed under 40 CFR part option for a fenceline monitoring the smaller volume tanks and provide 63, subpart UU, stating that the program. Summaries of comments on an overestimate of emission reductions frequency should be every 4 years these proposed provisions and our for this control option. Coupled with instead of 8 years that were used in the

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cost estimates. One commenter further should be allowed to incorporate OLD tanks for existing sources requiring contended that the EPA underestimated sources into their Petroleum Refineries control to align with those of the the administrative costs (e.g., training NESHAP (40 CFR part 63, subpart CC) Petroleum Refineries NESHAP (40 CFR and reporting costs) for the program by fenceline program, because the benzene part 63, subpart CC) and HON (40 CFR incorrectly assuming no additional fenceline monitoring is also appropriate part 63, subpart G) where the thresholds administrative costs for OLD facilities for collocated OLD sources. These are lower is generally acknowledged to that are collocated with processes that commenters also objected to many of be cost effective. However, the other already have an LDAR regulatory the provisions for implementing the proposed technology review program. A couple of commenters also monitoring, including that the requirements of fixed roof tank LDAR added that the industry finds and compliance timeline for commencing and adding connectors to the LDAR repairs leaks based on sensory methods, fenceline monitoring could be difficult program at OLD sources have been so requiring EPA Method 21 may not to meet, that the timeline for approving reevaluated in light of commenters’ result in the level of emissions and monitoring new analytes is too concerns and have not been found to be reductions that the EPA estimates. short, that OLD sources should be able cost-effective options for the OLD Response: We revised our cost and to use analyte uptake rates that are source category at this time. Since the emission reduction estimates and are published by national and international pool of emission reduction requirements not finalizing connector monitoring scientific organizations rather than is smaller in the final rule than because we no longer find it to be as going through EPA validation methods, proposed, we find it highly unlikely that cost effective for this source category as that the action level determination be OLD sources would have opted to originally determined. We reviewed revised from 5 times the method utilize the proposed fenceline commenters’ concerns and reevaluated detection limit (MDL) to 3 times the monitoring program. Therefore, we are the analyses of emission reductions and MDL to be consistent with previous EPA also not finalizing the fenceline cost for connector LDAR requirements actions, that the EPA’s modeling monitoring alternative in the final rule. and agree that the estimates of emission guidance for OLD sources contains some reductions that were not based on the inconsistencies with the Human C. Amendments Pursuant to CAA model plant analysis that served as the Exposure Model (HEM–3) User’s Guide, Sections 112(d)(2) and (3) for the OLD basis for this proposed requirement and that a 45-day timeline for corrective Source Category were likely inaccurate and action is too short in some cases. 1. What did we propose pursuant to underestimated the cost per ton From an alternate perspective, a CAA sections 112(d)(2) and (3) for the removed for this control option. Using public health advocate stated that OLD source category? the model plant emission reductions fenceline monitoring should be required and costs (see EPA–HQ–OAR–2018– in addition to the proposed new Under CAA section 112(d)(2) and (3), 0074–0015), as well as updating emission control requirements for we proposed to amend the operating measurement frequency, we estimate a storage tanks and equipment leaks. The and monitoring requirements for flares cost effectiveness of $10,063/ton HAP. commenter stated that because fenceline used as APCDs in the OLD source Coupled with unquantified additional monitors are a technological category to ensure that OLD facilities costs that may be incurred to address development that can reduce emissions, that use flares as APCDs meet the MACT safety concerns specific to OLD then the CAA requires that both the standards at all times when controlling facilities, the EPA has determined that enhanced emission controls and HAP emissions. We proposed at 40 CFR connector monitoring is not a cost- fenceline monitoring requirements must 63.2380 to directly apply the petroleum effective option for OLD sources. This be adopted. The commenter also refinery flare rule requirements in 40 determination also considers additional advocated for the EPA to require real- CFR part 63, subpart CC to flares in the uncertainty, such as with the HAP time monitoring, like Fourier transform OLD source category with certain content of the liquid. As a result, we are infrared spectroscopy, which has been clarifications and exemptions. We not finalizing the proposed demonstrated to be technically feasible proposed to retain the General requirements that require LDAR for and has been implemented in the South Provisions requirements of 40 CFR connectors. Coast Air Quality Management District’s 63.11(b) that flares used as APCDs in the Comment: No commenters supported Rule 1180. OLD source category operate pilot flame the fenceline provisions as proposed. Response: We are not finalizing the systems continuously and that flares Two commenters advocated that the fenceline monitoring alternative. The operate with no visible emissions fenceline monitoring option not be fenceline monitoring alternative was (except for periods not to exceed a total adopted in the rule. These commenters proposed as an optional control of 5 minutes during any 2 consecutive stated that because public health risks requirement to complying with the hours) when organic HAP emissions are are not reduced due to the proposed proposed control requirements for routed to the flare. We also proposed to enhancements to the control storage tanks and equipment leaks that consolidate measures related to flare tip requirements for storage tanks and we are not finalizing as explained velocity and new operational and equipment leaks, the fenceline above. Without the final requirements monitoring requirements related to the monitoring measures are unnecessary. for which fenceline monitoring was an combustion zone gas. We proposed to The commenters also objected to the alternative compliance approach, eliminate the cross-references to the EPA’s characterization of the fenceline fenceline monitoring is no longer General Provisions and instead cross- monitoring program being an alternative necessary. reference 40 CFR part 63, subpart CC. standard since, as the commenters The EPA also proposed to clarify that argued, the analytes and action levels 4. What is the rationale for our final PRDs on vapor return lines of a vapor are set based on the proposed, more approach for the technology review? balancing system are also subject to the stringent, control requirements and, Based on our review and vapor balancing system requirements of therefore, facilities would have to install consideration of information provided 40 CFR 63.2346(a)(4)(iv). We requested the proposed new controls anyway. in comments, the proposed requirement comment on several issues related to These commenters also advocated that a for revising the average true vapor PRDs, including whether work practices refinery with collocated OLD sources pressure thresholds of the OLD storage should be adopted for PRDs that are not

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part of a vapor balancing system, 3. What key comments did we receive point in time when the storage tank can whether work practices similar to those on the proposal revisions pursuant to be opened and any emissions vented to promulgated for petroleum refineries in CAA sections 112(d)(2) and (3), and the atmosphere. As such, we reviewed 40 CFR part 63, subpart CC are what are our responses? available data to determine how the best necessary and appropriate for OLD Comment: Commenters stated that the performers are controlling storage tank operations, information on the nature of proposal to eliminate the SSM degassing emissions. non-vapor balancing system PRDs, and provisions makes it unclear as to what We, and commenters, are aware of whether monitoring devices should be the OLD NESHAP compliance three state or air quality management district provisions regarding storage required to be installed and operated to obligations are related to fixed roof tank tank degassing, two in the state of Texas ensure continuous compliance with the degassing. The commenters added that and the third for the South Coast Air because tank degassing is included in standard at 40 CFR 63.2346(a)(4)(iv) that Quality Management District the shutdown definition, facilities have no PRD shall open during loading or as (SCAQMD) in California. Texas has historically considered fixed roof tank a result of diurnal temperature changes. degassing provisions in the Texas degassing activities to be covered by More information regarding our Administrative Code (TAC) (30 TAC their SSM plan, which includes proposal to address CAA sections Chapter 115, Subchapter F, Division 3) procedures for minimizing emissions and through permit conditions (as noted 112(d)(2) and (3) can be found in the during shutdown activities. The by commenters), and SCAQMD has proposed rule (84 FR 56302, October 21, commenters stated that the EPA is provisions in Rule 1149. The TAC 2019). Further details regarding proposing to remove the requirement to requirements are the least stringent comments received and the EPA’s implement and follow an SSM plan and responses are discussed below. (35,000 ppmv as methane or 50 percent adding a new general duty clause at 40 of the LEL), and the Texas permit 2. How did the revisions pursuant to CFR 63.2350(d) that would require conditions (10,000 ppmv or 10-percent CAA sections 112(d)(2) and (3) change facilities to operate and maintain any LEL) and SCAQMD Rule 1149 (5,000 since proposal? affected source, including air pollution ppmv as methane) are equivalent. The control device and monitoring Texas permit conditions and SCAQMD We are finalizing some clarifying edits equipment, at all times to minimize Rule 1149 are considered equivalent to the overlap provisions of 40 CFR 63, emissions. Commenters further asserted because 5,000 ppmv as methane equals subpart EEEE to address commenter that at some point it is no longer 10 percent of the LEL for methane. OLD concerns with overlap for flare reasonable or even technically feasible facilities located in Texas are subject to provisions in the OLD source category to continue to try to control the dilute the permit conditions, and 3 OLD with other regulations. Further, vapors using the normal control device facilities are subject to the SCAQMD commenters noted some clarifying edits or by routing to a fuel gas system or to rule. Of the 173 currently operating (i.e., to the simplified requirements allowed a process. The commenters noted that existing) OLD facilities, 44 are in Texas. some facilities are subject to standards in 40 CFR 63.670(j). We have revised the The Texas and California requirements for fixed roof tank degassing in their proposed requirements to address these are the most stringent we are aware of permits. The commenters supported the concerns, which are discussed in and; therefore, we conclude that those Texas requirements for fixed roof tank requirements reflect what the best section 8.0 of the Summary of Public degassing to represent what the average Comments and Responses for Risk and performers in the OLD source category of the best performers are doing to have implemented for storage tank Technology Review for Organic Liquids minimize emissions from fixed roof tank Distribution (Non-Gasoline), available in degassing. Commenters also confirm degassing. The commenters concluded this conclusion. the docket for this action. that these requirements state that fixed We reviewed the Texas permit We received comments that owners or roof storage tanks otherwise required to conditions for key information that operators have historically considered be controlled must be degassed to a could be implemented into the form of degassing emissions from shutdown of control device or controlled recovery a standard for storage tank degassing. storage tanks to be covered by their SSM system until the VOC concentration is The conditions require control of plans per the definition of ‘‘Shutdown’’ less than 10,000 ppmv or 10 percent of degassing emissions until the VOC included at 40 CFR 63.2406 and that the lower explosive level (LEL). One concentration of the vapor is less than there are several OLD affected sources commenter also requested that the EPA 10,000 ppmv or 10 percent of the LEL. that are subject to standards for tank clarify that once the atmospheric release We have used the 10 percent of the LEL degassing in their air permits. We criterion is met, vapors may also be in similar requirements in the assessed the MACT floor level of control released after tank entry. The Petroleum Refineries NESHAP (see 40 commenter stated that for many tanks, and, as a result, are adding a standard CFR 63.643(c) for example) and have, there are sludges in the bottom of the therefore, finalized these 10-percent LEL for storage tank degassing for storage tank or on the walls that may release requirements for tanks requiring control tanks subject to the control some hydrocarbon vapors as they are at 40 CFR 63.2346(a)(6). requirements in Tables 2 and 2b to 40 shoveled or hydroblasted off the tank We calculated the impacts due to CFR part 63, subpart EEEE. floor and/or walls. controlling storage tank degassing We are also finalizing the PRD Response: We agree that a standard is emissions by evaluating the population provisions as proposed. Comments on reasonable for tank degassing and have of estimated storage tanks subject to the PRD provisions and our responses included it in the final rule. With the control according to the requirements in are discussed in section 9.0 of the removal of SSM requirements, a Tables 2 and 2b of 40 CFR part 63, Summary of Public Comments and standard specific to storage tank subpart EEEE that are not located in Responses for Risk and Technology degassing did not exist. We agree with Texas or in SCAQMD. Storage tanks in Review for Organic Liquids Distribution the commenters that storage tank the OLD source category in Texas and (Non-Gasoline), available in the docket degassing is similar to maintenance SCAQMD would already be subject to for this action. vents (e.g., equipment openings) found the degassing requirements being in other rules, and that there must be a finalized, and there would not be

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additional costs or emissions reductions • transfer operations generate vapors and pressure is, therefore, untenable, for these facilities. Based on commenter from tank cars, trucks, or containers and flare cost basis must consider that statements, tanks are degassed for loading (unloading emissions show up OLD flares will have to install the full inspection typically every 10 years. as tank emissions and barge and ship range of continuous monitoring and Based on this average and the loading are not regulated by the OLD control instrumentation that was population of storage tanks that are not NESHAP though these may be routed to required for the Petroleum Refineries in Texas or in SCAQMD, we estimate 89 the same flare as OLD regulated NESHAP flares, with perhaps a few storage tank degassing events would be emissions). The commenter noted the limited exceptions. One commenter also subject to control each year. Controlling composition of those vapors will vary if affirmed that although the storage tank degassing would reduce the tank car, truck, or container is filled compositional variability of flared gas HAP emissions by 74 tpy, with a total with vapors of another type (e.g., air, streams is less than that of refineries, national annual cost of $418,656. See nitrogen, other organics); facilities will opt to conduct continuous the technical memorandum titled Tank • storage tank emission rates vary monitoring to reduce incremental Degassing Analysis for the Organic significantly as a function of stored supplemental fuel costs, and are likely Liquids Distribution (Non-Gasoline) liquid temperature and changes in tank to install flow meters instead of relying Source Category Final Rule, which is levels. The commenter pointed out that on pressure and temperature monitoring available in Docket ID No. EPA–HQ– if the tank level is increasing due to systems and engineering calculations. OAR–2018–0074 for details on the material entering the tank, the emission One commenter added that because of assumptions and methodologies used in rate will be much higher than the rate the typically remote location of OLD this analysis. due to temperature changes; if the NESHAP-only flares, there are likely to We considered whether there are stored material temperature or level is be large additional costs compared to technically feasible options more dropping, air or inert gas will be drawn Petroleum Refineries NESHAP to add into the tank; new utilities, analyzer houses, data stringent than the MACT floor • requirements but are not aware of loading emission rates vary as the systems, and control room backpressure varies as the receiving storage tank degassing provisions instrumentation. The commenter, volume fills with liquid and/or the beyond those discussed above for Texas therefore, concluded that even if the backpressure from the vapor collection and SCAQMD. Therefore, no options EPA’s assumption of only continuous system changes; temperature and pressure monitoring more stringent than the MACT floor • the commenter urged that were evaluated. We also confirm that were correct, a $190,000 investment reasonably good flow measurements for would unlikely be enough to instrument once the 10-percent LEL criterion is each of these flows would be needed to met, tank vapors may be vented to the one flare, much less 27. The commenter estimate the total waste gas flow to an remarked that use of the Petroleum atmosphere even after tank entry. OLD NESHAP flare and would be Refineries NESHAP cost estimate Comment: Several commenters required for every source going to that prorated to the EPA’s estimated 27 OLD contended that the assumptions the EPA flare, not just the OLD NESHAP sources. NESHAP flares would yield an used in developing the flare control cost The commenter noted that because of annualized OLD cost of $2.4 million and and emission reduction estimates are the impossibility of obtaining all the a cost effectiveness of $3,673/ton of not realistic. The commenters indicated required individual flow information, VOC reduced and $37,182/ton of HAP that several of the EPA’s assumptions the Petroleum Refineries NESHAP reduced. laid out in the proposal preamble are provisions focus only on measuring the Another commenter provided a incorrect for most OLD NESHAP flares. total flow at the flare. The commenter summary of information collected from The commenters argued that the EPA’s insisted that because of the range of member facilities on approximately 80 basis for the flare cost estimates is that flows, this requires a sophisticated wide flares on the estimated cost impacts of OLD NESHAP operations are steady range meter such as a sonic flow meter; flare requirements in the EPA’s enough that compositions and flow rates and proposed revisions to the Ethylene do not change, so continuous • the commenter stressed that assist MACT standards, which the commenter instrumentation is not needed for steam and supplemental fuel demands contended are essentially the same as compliance (except for continuous vary widely as flare conditions change, the proposed revisions in the OLD temperature and pressure monitoring), and, thus, would not be amenable to NESHAP. The commenter asserted that and that composition sampling and estimation or using engineering for the Ethylene MACT, member engineering estimates are sufficient. The estimates even though the gas molecular companies indicated they would need commenters insisted this basis is weight is known. to install at least two new flares due to incorrect. One commenter made the The commenter stated that due to the the potential for existing flares to exceed following points: above, facilities must have at least the number of visible emissions events • Although some organic liquids have continuous flow rate monitoring of the allowed by the emergency flaring relatively constant composition as the waste gas, supplemental fuel, and assist provisions during upset conditions; at EPA states, most OLD NESHAP flares steam in order to allow control on a 15- least one gas chromatograph in order to will be receiving vapors from multiple minute basis, and stressed that, in most comply with the proposed monitoring OLD sources simultaneously, including cases, continuous monitoring of waste requirements; upgraded natural gas tank vapors, loading vapors and likely gas composition is also needed. The controls for at least 23 flares (to meet the small amounts from equipment leak commenter also urged that due to the more stringent minimum flare gas net vapors. The commenter asserted that in broad range of potential flow rates, heating value) and flow monitoring; and order to estimate the composition of the additional controls (typically split range additional costs based on the estimated flare waste gas and the net heating value controllers) would be needed to rapidly amount of supplemental fuel firing. The of the flare vent gas (NHVvg), facilities adjust assist gas and supplemental fuel commenter estimated that, based on this would need accurate flow information to meet the NHVcz requirements on a information, the average capital and on each stream and composition 15-minute basis. The commenter annual costs to implement the changes information for those streams that have contended that the EPA’s engineering applicable to OLD flares (i.e., excluding variable compositions; estimate approach using temperature the emergency flaring management work

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practices) are $509,000 and $725,000 MACT flares in mind. As acknowledged SSM provisions that are not consistent per flare, with an estimated annual by several commenters, OLD flare with the requirement that the standards average cost of incremental operation and monitoring are likely apply at all times, the EPA assessed the supplemental fuel of $655,000 per flare. simpler than ethylene flares, and some level of control the best performing OLD The commenter concluded that with commenters’ three 1-hour test run sources are using for tank degassing their estimated costs and the EPA’s suggestion for demonstrating events. During this assessment and estimate of 64 tpy of HAP reductions, compliance are essentially equivalent to based on comments, air permit the cost effectiveness of the proposed the grab sampling requirements in 40 requirements for OLD sources in Texas amendments would be approximately CFR 63.670(j)(6) and they could be require degassing to a 10-percent LEL or $306,000/ton of HAP reduced. The further refined to facilitate easier use of 10,000 ppm prior to opening the tank to commenter also questioned the validity simplified monitoring provisions. We the atmosphere, and these requirements of the EPA’s proposed HAP reductions, have revised those requirements to represent the best level of control for stating that the EPA’s basis for its 64 tpy address concerns of petitioning to use tank degassing events for OLD sources estimate of reduced HAP emissions is the grab sample approach, which further and those in California and Texas are simply an assumption that all OLD streamlines these requirements. If, as already complying with. flares are operating with a 90-percent the commenter suggests, their facilities In this action, we are including combustion efficiency, and that the opt to use more sophisticated provisions at 40 CFR 63.2346(a)(6) that Agency has not provided data to continuous monitoring instrumentation require tanks that are subject to control support this assumption. instead of the proposed grab sample/ to continue to route degassing vapors to One commenter estimated that the worst case approach, they have the a device equivalent to the control (i.e., cost to install all required flexibility to do so. However, we 95-percent organic HAP reduction, back instrumentation is in the $600,000 to disagree that cost estimates based on to process or fuel gas system) until the $800,000 range for a single flare. Ethylene Production source category vapor within the storage tank has Several commenters stated that, flares are appropriate for OLD. We also reached 10 percent of the LEL. because costs for the OLD NESHAP flare note that the commenter applies a The PRD definition and provisions instrumentation and controls will likely supplemental natural gas cost that were proposed are being finalized. greatly exceed the proposed costs, the approximately 18 times higher than our No additional work practice provisions proposed revised flare requirements are estimate (if supplemental natural gas is or requirements are being added to the not cost effective and should not be needed to meet NHVcz limits for the PRD requirements as a result of finalized. flare) for their OLD flare cost commenter suggestions, and the Response: We do not agree with the assessment. This natural gas cost seems clarifications proposed in 40 CFR comments that the proposed revisions to excessive, especially considering that 63.2346(a)(iv) and the definition in 40 the flare requirements should not be commenters did not discuss adjusting CFR 63.2406 are being made final. We finalized. We proposed the flare other flare parameters instead of using note that we received several comments amendments under the authority of such a large amount of natural gas. on these provisions and clarification on CAA sections 112(d)(2) and (3) to ensure what constitutes a deviation for these that flares used to control OLD emission 4. What is the rationale for our final types of devices within the OLD sources are meeting the combustion approach and final decisions pursuant NESHAP. We have responded to these efficiency requirements that are the to CAA sections 112(d)(2) and (3)? comments in section 9.0 of the basis for our original rule. In proposing As we discussed above, we proposed Summary of Public Comments and these amendments, we did not use the the flare amendments under the Responses for Risk and Technology authority of CAA 112(d)(6) and did not authority of CAA sections 112(d)(2) and Review for Organic Liquids Distribution consider costs. Since the revisions (3) to ensure flares used to control OLD (Non-Gasoline), available in the docket ensure continuous compliance with the emission sources are meeting the for this action. MACT standard under CAA sections combustion efficiency requirements that 112(d)(2) and (3), costs are not a factor are the basis for our original rule and D. Amendments Addressing Emissions considered for these revisions. We necessary to ensure sources are During Periods of SSM determined the flare operating and complying with the MACT level of monitoring requirements were not control. For this reason, we did not 1. What amendments did we propose to adequate to ensure that 98-percent consider costs in proposing these address emissions during periods of control efficiency can be met for a flare requirements and are generally SSM? at all times. Regarding the commenter’s finalizing these amendments as We proposed amendments to the OLD arguments that the emission reductions proposed. We did, however, make some NESHAP to remove and revise assumed to be a result of the proposed revisions to the proposed requirements provisions related to SSM that are not flaring provisions are overstated, the 90- at 40 CFR 63.2380 to further streamline consistent with the requirement that the percent assumption was illustrative of the requirements of 40 CFR 63.670(j) to standards apply at all times. More potential emissions in worst case facilitate the ability of sources to use the information concerning the elimination situations, but since cost and, thus, cost grab sample approach for determining of SSM provisions is in the preamble to effectiveness are not considerations net heating value. In addition, and as the proposed rule (84 FR 56318–56322, when determining the MACT floor, we discussed earlier, we also amended the October 21, 2019). did not rely on estimated HAP emission overlap provisions of 40 CFR 63.2396 to 2. How did the SSM provisions change reductions in making our decision to clarify applicability for flares subject to since proposal? propose or finalize these requirements. the requirements of the OLD NESHAP We did estimate costs in order to and to other NESHAP requirements. We are finalizing the SSM provisions provide the resulting impacts, but we Tank degassing is considered a proposed (84 FR 56318, October 21, are not revising the costs as a result of shutdown activity and historically has 2019) with some modifications, this comment, especially as the costs been considered by OLD sources to be including: Revisions to the proposed presented by the commenter appear to covered under their SSM plan and provisions of 40 CFR 63.2378(e) for have been developed with Ethylene permit conditions. With the removal of periods of planned routine maintenance

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of the control device to allow tank Technology Review for Organic Liquids be not subject to the OLD NESHAP breathing losses to be consistent with Distribution (Non-Gasoline), available in because they contain less than 5-percent our intent at proposal (see 84 FR 56323, the docket for this action. HAP (and, therefore, do not meet the October 21, 2019); revisions to 40 CFR definition of ‘‘Organic liquids’’ within E. Technical Amendments to the MACT 63.2346(l) to further clarify the SSM Standards the OLD NESHAP) should be tested requirements in referenced subparts every 5 years, or with a change of (such as 40 CFR part 63, subparts SS, 1. What other amendments did we commodity in the tank’s contents, TT, and UU) that are no longer propose for the OLD source category? whichever occurs first, to confirm that applicable; and we have extended the We proposed that owners or operators the tank is not storing ‘‘organic liquids’’ effective date of removing the portion of of OLD facilities submit electronic and, therefore, is not subject to the rule. the ‘‘deviation’’ definition in 40 CFR copies of required performance test We proposed the revision of 40 CFR 63.2406 that addresses SSM periods as reports, performance evaluation reports, 63.2354(c) to add the voluntary being applicable 3 years after compliance reports, NOCS reports, and consensus standard (VCS), ATSM publication of the final rule in the fenceline monitoring reports through D6886–18, ‘‘Standard Test Method for Federal Register to provide a consistent the EPA’s CDX using CEDRI. Determination of the Weight Percent compliance date due to the addition of Performance test results must be Individual Volatile Organic Compounds the tank degassing requirements collected using test methods that are in Waterborne Air-Dry Coatings by Gas discussed in section IV.C of this supported by the EPA’s ERT as listed on Chromatography,’’ as another acceptable preamble. the ERT website 6 at the time of the test method for the determination of HAP 3. What key comments did we receive be submitted in the format generated content of an organic liquid. We are also on the SSM revisions and what are our through the use of the ERT and that finalizing the replacement of method responses? other performance test results be ASTM D2879 with method ASTM submitted in PDF using the attachment D6378–18a as one of the acceptable We received several comments related module of the ERT. Similarly, methods for the determination of vapor to our proposed revisions to the SSM performance evaluation results of CEMS pressure. provisions. Commenters discussed measuring relative accuracy test audit issues related to the removal of the 240- Finally, we proposed several revisions pollutants that are supported by the ERT hour exemption for planned to clarify text or correct typographical at the time of the test must be submitted maintenance of control devices, the errors, grammatical errors, and cross- in the format generated through the use need for tank degassing requirements reference errors in 84 FR 56323 through of the ERT and other performance with the revision of SSM provisions (as 56324 and Table 9 of the proposal. evaluation results be submitted in PDF discussed in more detail in section IV.C using the attachment module of the 2. How did the other amendments for of this preamble), and other ERT. We also proposed that NOCS the OLD source category change since miscellaneous issues pertaining to the reports must be submitted as a PDF proposal? SSM provisions of 40 CFR part 63, upload in CEDRI. subparts SS, TT, and UU requirements We are not finalizing the proposed For compliance reports and fenceline requirements for periodic testing and referred to within 40 CFR part 63, monitoring reports, we proposed that subpart EEEE. These comments and our recordkeeping for the annual average owners or operators use the appropriate true vapor pressure for those tanks not responses are available in section 10.1 spreadsheet template to submit of the Summary of Public Comments subject to the 95 percent control information to CEDRI. requirements of the regulation. Further, and Responses for Risk and Technology Additionally, we proposed two broad Review for Organic Liquids Distribution we are not finalizing, as proposed, a circumstances in which we may provide requirement that the contents of tanks (Non-Gasoline), available in the docket extension to these requirements. We for this action. As discussed above, we that are claimed to be not subject to the proposed that an extension may be OLD NESHAP because they contain less have made some changes to the warranted due to outages of the EPA’s than 5 percent HAP (and, therefore, do revisions to the SSM requirements in CDX or CEDRI that precludes an owner not meet the definition of ‘‘Organic the final rule to address the significant or operator from accessing the system liquids’’ within the OLD NESHAP) issues brought forth by commenters. and submitting required reports. We should be tested every 5 years, or with also proposed that an extension may be 4. What is the rationale for our final a change of commodity in the tank’s warranted due to a force majeure event, approach and final decisions to address contents, whichever occurs first, to such as an act of nature, act of war or emissions during periods of SSM? confirm that the tank is not storing terrorism, or equipment failure or safety We evaluated all comments on the ‘‘organic liquids’’ and, therefore, is not hazards beyond the control of the EPA’s proposed amendments to the subject to the rule. We are, however, facility. SSM provisions. For the reasons Additionally, we proposed required finalizing the revision of 40 CFR explained in the proposed rule, we testing and recordkeeping for emission 63.2354(c) to add ASTM D6886–18, determined that these amendments sources not requiring control to confirm ‘‘Standard Test Method for remove and revise provisions related to the annual average true vapor pressure Determination of the Weight Percent SSM that are not consistent with the at least every 5 years, or with a change Individual Volatile Organic Compounds requirement that the standards apply at of commodity in the tank’s contents, in Waterborne Air-Dry Coatings by Gas all times. More information concerning whichever occurs first, to ensure the Chromatography,’’ as another acceptable the amendments we are finalizing for tank’s applicability and confirm that it method for the determination of HAP SSM is in the preamble to the proposed should not be subject to the 95-percent content of an organic liquid. We are also rule (84 FR 56318–56322, October 21, control requirements of the regulation. finalizing the replacement of method 2019). Additional revisions to these Further, we proposed a requirement that ASTM D2879 with method ASTM amendments based on comments the contents of tanks that are claimed to D6378–18a as an acceptable method for received are discussed in further detail determination of whether a total vapor in section 10.1 of the Summary of Public 6 https://www.epa.gov/electronic-reporting-air- pressure (and, therefore, the sum total of Comments and Responses for Risk and emissions/electronic-reporting-tool-ert. Table 1 to 40 CFR part 63, subpart EEEE

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HAP) is below the threshold level not provided justification for the added excluding tanks from control. If the total requiring control for a storage tank. requirement or provided an indication vapor pressure of the liquid measured The proposed electronic reporting with supporting data of the ‘‘problem’’ using ASTM 6378–18a is less than the requirements and the technical and the Agency is trying to resolve. The vapor pressure threshold for control, editorial corrections in Table 9 of the commenter further argued that facilities then the liquid being stored would, proposal (see 84 FR 56324, October 21, already have general obligations under therefore, also be below the threshold 2019) have not changed, aside from title V 5-year renewals to ensure permits for control. some additional editorial changes based include all requirements applicable to a on comments and the removal of the facility. V. Summary of Cost, Environmental, fenceline monitoring alternative Response: The EPA acknowledges and Economic Impacts and Additional electronic reporting. Aside from these ASTM D6378–18a measures total vapor Analyses Conducted noted differences from proposal, we are pressure and not HAP vapor pressure, A. What are the affected facilities? finalizing the electronic reporting therefore, we are not finalizing the requirements and technical and periodic vapor pressure testing There are 173 facilities currently editorial corrections. requirements due to lack of an operating OLD equipment subject to the appropriate method to measure only 3. What key comments did we receive OLD NESHAP and four new facilities HAP vapor pressure. However, facilities on the other amendments for the OLD under construction. A complete list of may still use ASTM D6378–18a as a source category and what are our facilities that are currently subject to the method for excluding tanks from control responses? OLD NESHAP is available in appendix due to the fact that if the total vapor A of the memorandum, National Comment: Several commenters pressure of the liquid is less than the objected to the proposed requirement in Impacts of the 2020 Risk and threshold for control, then the HAP Technology Review Final Rule for the 40 CFR 63.2343(b)(5) and (6) that vapor pressure (which is a subset of the Organic Liquids Distribution (Non- facilities conduct periodic vapor total vapor pressure) would also be Gasoline) Source Category, which is pressure testing or obtain vapor pressure under the threshold. The EPA also available in the docket for this action. data from the organic liquid supplier to acknowledges that the periodic 5- demonstrate that the annual average percent HAP content testing The EPA projects four new liquids true vapor pressure of the organic liquid requirement creates a potential scenario terminals and one major terminal in each storage tank is below control of requiring sources to perform regular expansion that would be subject to the thresholds. Commenters argued that the non-applicability determinations for all OLD NESHAP. These new sources are addition of these two testing tanks at major sources that could be not included in the risk assessment requirements is burdensome and duplicative, considering the provisions modeling effort but are included in the unnecessary, results in no HAP of the OLD NESHAP are applied impacts analysis. emissions reductions, goes beyond what through a title V permit requirement, other NESHAP require for storage tanks, and that there are 5-year renewal B. What are the air quality impacts? and should not be finalized. Several obligations for title V permits. To be in The risk assessment model input file commenters further objected to the compliance with their title V permit, identifies approximately 2,400 tons of proposed requirement to use test OLD affected sources have an ongoing HAP emitted per year from equipment method ASTM D6378–18a for storage obligation to ensure that tanks storing regulated by the OLD NESHAP. The tank vapor pressure analyses. organic liquids with greater than 5 Commenters stated that the requirement predominant HAP compounds include percent HAP are meeting the OLD toluene, hexane, methanol, xylenes that test method ASTM D6378–18a must NESHAP requirements. Therefore, we be used is impracticable and conflicts (mixture of o, m, and p isomers), are not finalizing periodic HAP content benzene, styrene, methyl isobutyl with the wording of the control testing. Facilities will still be able to use ketone, methylene chloride, methyl tert- thresholds that are based on the annual Method 311, voluntary consensus butyl ether, and ethyl benzene. More average true vapor pressure of the total standards, SDS, and certified product information about the baseline Table 1 HAP, not the total annual data sheets, and calculations as a means emissions in the risk assessment model average true vapor pressure of the of determining applicability. liquid, which is the measured result of input file can be found in appendix 1 of ASTM D6378–18a. One commenter 4. What is the rationale for our final the memorandum, Residual Risk stated that periodic testing is not approach and final decisions for the Assessment for the Organic Liquids needed, since inbound organic liquids other amendments for the OLD source Distribution (Non-Gasoline) Source HAP contents, and, thus, calculated category? Category in Support of the 2020 Risk HAP partial pressures, are available After evaluating the comments on the and Technology Review Final Rule, from vendor and in-house analyses and proposed periodic HAP and vapor which is available in the docket for this outbound materials are tested in pressure testing requirements that were action. This final action would reduce developing the required safety data proposed, we are not finalizing these HAP emissions from OLD NESHAP sheet (SDS) for that material. Several requirements. As discussed above, we sources. The EPA estimates HAP commenters also noted that other agree that there are not any methods emission reductions of approximately NESHAP have storage tank vapor suitable to determine the organic HAP 186 tpy based on our analysis of the pressure thresholds for control but do partial pressure of a liquid, and that actions described in sections IV.B and C not require regular testing to confirm these requirements could create a of this preamble. More information vapor pressure (e.g., 40 CFR part 63, duplicative requirement scenario about the estimated emission reductions subparts YY, GGG, and OOO). Another requiring sources to establish non- of this final action can be found in the commenter further argued that the applicability although a similar document, National Impacts of the 2020 requirement to conduct periodic obligation already exists in their title V Risk and Technology Review Final Rule negative applicability determinations is permit. As we also explain, we have for the Organic Liquids Distribution precedent setting and is not warranted. included ASTM 6378–18a in the final (Non-Gasoline) Source Category, which The commenter stated that the EPA has rule as a method suitable for use for is available in the docket for this action.

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C. What are the cost impacts? approximately $170,000 per year from interest rate of 5 percent to annualize the reduction in evaporative emissions the total capital costs. These estimated We estimate the total capital costs of from storage tanks. To estimate savings costs are associated with amendments of these final amendments to be in chemicals not being emitted (i.e., lost) the requirements for storage tanks, approximately $2.5 million and the total due to the reduction in evaporative LDAR, flares, and transfer racks. Table annualized costs (including recovery emissions, we applied a recovery credit 4 of this preamble shows the estimated credits) to be $1.8 million per year of $900 per ton of VOC to the VOC costs for each of the equipment types. (2016$). We also estimate the present emission reductions in the analyses. Detailed information about how we value of the costs is $8.5 million at a The $900 per ton recovery credit has estimated these costs are described in discount rate of 3 percent and $7.1 historically been used by the EPA to the following documents available in million at 7 percent (2016$). Calculated represent the variety of chemicals that the docket for this action: National as an equivalent annualized value, are used as reactants and produced at Impacts of the 2020 Risk and which is consistent with the present synthetic organic chemical Technology Review Final Rule for the value of the costs, the costs are $1.1 manufacturing facilities.7 At proposal, Organic Liquids Distribution (Non- million at a discount rate of 3 percent we solicited comment on the Gasoline) Source Category, and and $0.9 million at a discount rate of 7 availability of more recent information Economic Impact and Small Business percent (2016$). The annualized costs to potentially update the value used in Analysis for the Final Organic Liquids include those for operating and this analysis to estimate the recovery Distribution (Non-Gasoline) (OLD) Risk maintenance, and recovery credits of credits, but received none. We used an and Technology Review (RTR) NESHAP.

TABLE 4—SUMMARY OF COSTS OF FINAL AMENDMENTS BY EQUIPMENT TYPE, IN MILLIONS [2016$]

Total Total annualized cost Annual annualized cost Equipment type Capital cost (without annual recovery (with annual recovery credits) credits recovery credits)

Storage tanks ...... 2.28 0.29 0.17 0.12 Tank Degassing ...... 0.00 0.42 N/A 0.42 Flares ...... 0.19 0.36 N/A 0.36 Deletion of 240-hr exemption for control device maintenance dur- ing transfers (Transfer racks) ...... 0.00 0.88 N/A 0.88

Total ...... 2.47 1.95 0.17 1.78

D. What are the economic impacts? be substantial impacts on the markets F. What analysis of environmental The EPA conducted economic impact for affected products. The costs are not justice did we conduct? analyses for the amendments to the final expected to result in a significant Executive Order 12898 (59 FR 7629, rule, as detailed in the memorandum market impact, regardless of whether February 16, 1994) establishes federal titled Economic Impact and Small they are passed on to the purchaser or executive policy on environmental Business Analysis for the Final Organic absorbed by the firms. justice. Its main provision directs Liquids Distribution (Non-Gasoline) federal agencies, to the greatest extent E. What are the benefits? (OLD) Risk and Technology Review practicable and permitted by law, to (RTR) NESHAP, which is available in The EPA did not monetize the make environmental justice part of their the docket for this action. The economic benefits from the estimated emission mission by identifying and addressing, impacts of the amendments to the final reductions of 186 tpy of HAP associated as appropriate, disproportionately high rule are calculated as the percentage of with this action. However, we expect and adverse human health or total annualized costs incurred by this action will result in benefits environmental effects of their programs, affected parent owners to their annual associated with HAP emission policies, and activities on minority revenues. This ratio provides a measure reductions and lower risk of adverse populations and low-income of the direct economic impact to populations in the United States. health effects in communities near OLD ultimate parent owners of OLD facilities To examine the potential for any while presuming no impact on sources. environmental justice issues that might consumers. We estimate that none of the While not explicitly calculated, we be associated with the source category, ultimate parent owners affected by this expect reductions in MIR, population we performed a demographic analysis, final action will incur total annualized exposed to a cancer risk of greater than which is an assessment of risks to costs of 0.4 percent or greater of their or equal to 1-in-1 million, and in other individual demographic groups of the revenues. This estimate reflects the total risks metrics such as incidence, acute populations living within 5 kilometers annualized costs without product risk, multipathway risks, and ecological (km) and within 50 km of the facilities. recovery as a credit. Thus, these risks from the estimated emission In the analysis, we evaluated the economic impacts are low for affected reductions. distribution of HAP-related cancer and companies and the industries impacted noncancer risks from the OLD source by this final action, and there will not category across different demographic

7 U.S. EPA. 2007. Standards of Performance for Petroleum Refineries (https:// manufacturing). Docket ID No. EPA–HQ–OAR– Equipment Leaks of VOC in the Synthetic Organic www.federalregister.gov/documents/2007/07/09/E7- 2006–0699. Chemicals Manufacturing Industry; Standards of 13203/standards-of-performance-for-equipment- Performance for Equipment Leaks of VOC in leaks-of-voc-in-the-synthetic-organic-chemicals-

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groups within the populations living B. Executive Order 13771: Reducing announce that approval in the Federal near facilities. Regulations and Controlling Regulatory Register and publish a technical At proposal, we noted that our Costs amendment to 40 CFR part 9 to display analysis of the demographics of the This action is not an Executive Order the OMB control number for the population with estimated risks greater 13771 regulatory action because this approved information collection than 1-in-1 million indicates potential action is not significant under Executive activities contained in this final rule. disparities in risks between Order 12866. demographic groups, including the D. Regulatory Flexibility Act (RFA) African American, Hispanic or Latino, C. Paperwork Reduction Act (PRA) I certify that this action will not have Over 25 Without a High School The information collection activities a significant economic impact on a Diploma, and Below the Poverty Level in this rule have been submitted for substantial number of small entities groups. In addition, the population approval to OMB under the PRA. The under the RFA. Of the 90 ultimate living within 50 km of OLD facilities Information Collection Request (ICR) parent companies that are subject to this has a higher percentage of minority, document that the EPA prepared has action, ten of them are small according lower income, and lower education been assigned EPA ICR number 1963.09. to the Small Business Administration’s people when compared to the You can find a copy of the ICR in the small business size standards. None of nationwide percentages of those groups. docket for this rule, and it is briefly the affected small parent companies are However, acknowledging these potential summarized here. The information expected to have compliance costs of disparities, the risks for the source collection requirements are not more than 0.4 percent of their sales. For category were determined to be enforceable until OMB approves them. more information on the analysis, see acceptable, and emissions reductions We are finalizing amendments that the Economic Impact and Small from the final rule revisions will benefit change the reporting and recordkeeping Business Analysis for the Final Organic these groups the most. requirements for OLD operations. The Liquids Distribution (Non-Gasoline) The methodology and the results of (OLD) Risk and Technology Review the demographic analysis 8 are amendments also require electronic reporting of performance test results and (RTR) NESHAP, available in the docket presented in a technical report, Risk and for this action. Technology Review—Analysis of reports and compliance reports. The Demographic Factors for Populations information will be collected to ensure E. Unfunded Mandates Reform Act Living Near Organic Liquids compliance with 40 CFR part 63, (UMRA) Distribution (Non-Gasoline) Source subpart EEEE. The total estimated This action does not contain an Category Operations, that is available in burden and cost for reporting and unfunded mandate of $100 million or the docket for this action. recordkeeping due to these amendments more as described in UMRA, 2 U.S.C. are presented below and are not 1531–1538, and does not significantly or G. What analysis of children’s intended to be cumulative estimates that uniquely affect small governments. The environmental health did we conduct? include the burden associated with the action imposes no enforceable duty on The EPA does not believe the requirements of the existing 40 CFR part any state, local, or tribal governments or environmental health or safety risks 63, subpart EEEE. the private sector. addressed by this action present a Respondents/affected entities: disproportionate risk to children. This Owners or operators of OLD operations F. Executive Order 13132: Federalism action’s health and risk assessments are at major sources of HAP are affected by This action does not have federalism summarized in section IV.A of this these amendments. These respondents implications. It will not have substantial preamble and are further documented in include, but are not limited to, facilities direct effects on the states, on the the risk report, Residual Risk having NAICS codes: 4247 (Petroleum relationship between the national Assessment for the Organic Liquids and Petroleum Products Merchant government and the states, or on the Distribution (Non-Gasoline) Source Wholesalers), 4861 (Pipeline distribution of power and Category in Support of the 2020 Risk Transportation of Crude Oil), and 4931 responsibilities among the various and Technology Review Final Rule, (Warehousing and Storage). levels of government. available in the docket for this action. Respondent’s obligation to respond: Mandatory under sections 112 and 114 G. Executive Order 13175: Consultation VI. Statutory and Executive Order of the CAA. and Coordination With Indian Tribal Reviews Estimated number of respondents: Governments Additional information about these 177 facilities. This action does not have tribal statutes and Executive Orders can be Frequency of response: Once or twice implications as specified in Executive found at https://www.epa.gov/laws- per year. Order 13175. None of the OLD facilities regulations/laws-and-executive-orders. Total estimated burden: 4,111 hours that have been identified as being (per year). Burden is defined at 5 CFR A. Executive Orders 12866: Regulatory affected by this final action are owned 1320.3(b). Planning and Review and Executive or operated by tribal governments or Total estimated cost: $570,132 (per Order 13563: Improving Regulation and located within tribal lands. Thus, year), which includes $154,000 Regulatory Review Executive Order 13175 does not apply annualized capital or operation and to this action. This action is not a significant maintenance costs. regulatory action and was, therefore, not An agency may not conduct or H. Executive Order 13045: Protection of submitted to the Office of Management sponsor, and a person is not required to Children From Environmental Health and Budget (OMB) for review. respond to, a collection of information Risks and Safety Risks unless it displays a currently valid OMB This action is not subject to Executive 8 We note that, based on public comments, there control number. The OMB control Order 13045 because it is not are four fewer existing OLD affected sources now economically significant as defined in than at proposal. However, this change does not numbers for the EPA’s regulations in 40 warrant an update to this analysis since proposal CFR are listed in 40 CFR part 9. When Executive Order 12866, and because the and has, therefore, not been updated. OMB approves this ICR, the Agency will EPA does not believe the environmental

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health or safety risks addressed by this 40 CFR 63.14(e)(1). ANSI/ASME PTC to measure the contents of aerosol cans action present a disproportionate risk to 19.10–1981 Part 10 specifies methods, and would not be well suited for organic children. This action’s health and risk apparatus, and calculations that are liquid samples regulated under the OLD assessments are contained in sections used in conjunction with Performance NESHAP. This standard is not being IV.A of this preamble. Test Codes to quantify the gaseous incorporated by reference. constituents of exhausts from stationary (5) The VCS ASTM D6348–12e1, I. Executive Order 13211: Actions combustion sources. The gases covered ‘‘Determination of Gaseous Compounds Concerning Regulations That include oxygen, carbon dioxide, carbon by Extractive Direct Interface Fourier Significantly Affect Energy Supply, monoxide, nitrogen, sulfur dioxide, Transform (FTIR) Spectroscopy,’’ is an Distribution, or Use sulfur trioxide, nitric oxide, nitrogen acceptable alternative to EPA Method This action is not subject to Executive dioxide, hydrogen sulfide, and 320. In the September 22, 2008, NTTAA Order 13211, because it is not a hydrocarbons. summary, ASTM D6348–03(2010) was significant regulatory action under (2) The VCS ASTM D6420–18, ‘‘Test determined equivalent to EPA Method Executive Order 12866. Method for Determination of Gaseous 320 with caveats. ASTM D6348–12e1 is J. National Technology Transfer and Organic Compounds by Direct Interface a revised version of ASTM D6348– Advancement Act (NTTAA) and 1 CFR Gas Chromatography/Mass 03(2010) and includes a new section on Part 51 Spectrometry.’’ This ASTM procedure accepting the results from direct has been approved by the EPA as an measurement of a certified spike gas This rulemaking involves technical alternative to EPA Method 18 only cylinder, but still lacks the caveats we standards. As discussed in the preamble when the target compounds are all placed on the ASTM D6348–03(2010) of the proposal, the EPA conducted known, and the target compounds are version. The VCS ASTM D6348–12e1, searches for the OLD NESHAP through all listed in ASTM D6420 as ‘‘Determination of Gaseous Compounds the Enhanced National Standards measurable. ASTM D6420–18 uses a by Extractive Direct Interface Fourier Systems Network Database managed by direct interface gas chromatograph/mass Transform (FTIR) Spectroscopy,’’ is an the American National Standards spectrometer to identify and quantify 36 acceptable alternative to EPA Method Institute (ANSI). We also contacted VCS VOC (or a subset of these compounds), 320 at this time with caveats requiring organizations and accessed and however, ASTM D6420–18 should not inclusion of selected annexes to the searched their databases. We conducted be specified as a total VOC method. standard as mandatory. This field test searches for EPA Methods 1, 1A, 2, 2A, Therefore, we are adding this standard method uses an extractive sampling 2C, 2D, 2F, 2G, 3, 3A, 3B, 4, 18, 21, 22, as a footnote to Table 5 to 40 CFR part system to direct stationary source 25, 25A, 26, 26A, and 27 of 40 CFR part 63, subpart EEEE and incorporate this effluent to an FTIR spectrometer to 60, appendix A and EPA Methods 301, standard by reference at 40 CFR identify and quantify gaseous 311, 316, 320, 325A, and 325B of 40 63.14(e)(93). We are also updating compounds with results as a CFR part 63, appendix A. During the reference to the older version of this concentration. We are allowing the use EPA’s VCS search, if the title or abstract standard (i.e., ASTM D6420–99 of this VCS as an alternative to EPA (if provided) of the VCS described (Reapproved 2004) at 40 CFR Method 320 at 40 CFR technical sampling and analytical 63.2354(b)(3) to the new 2018 version 63.2354(b)(3)and(4) and at Table 5 to 40 procedures that are similar to the EPA’s and are removing reference to the old CFR part 63, subpart EEEE under reference method, the EPA reviewed it version of this standard at 40 CFR conditions that the test plan preparation as a potential equivalent method. We 63.14(e)(90) for use in the OLD and implementation in the Annexes to reviewed all potential standards to NESHAP. ASTM D6348–12e1, sections A1 determine the practicality of the VCS for (3) The VCS ASTM D6735–01(2009), through A8 are mandatory; the percent this rule. This review requires ‘‘Standard Test Method for (%)R must be determined for each target significant method validation data that Measurement of Gaseous Chlorides and analyte (Equation A5.5); %R must be meet the requirements of EPA Method Fluorides from Mineral Calcining 70% ≥ R ≤ 130%; if the %R value does 301 of appendix A to 40 CFR part 63 for Exhaust Sources Impinger Method,’’ is not meet this criterion for a target accepting alternative methods or an acceptable alternative to EPA Method compound, then the test data is not 26 or EPA Method 26A from Mineral scientific, engineering, and policy acceptable for that compound and the Calcining Exhaust Sources, which is equivalence to procedures in the EPA test must be repeated for that analyte specified at 40 CFR part 63, subpart SS, reference methods. (i.e., the sampling and/or analytical which is cited in the OLD NESHAP. For The EPA may reconsider procedure should be adjusted before a further information about the EPA’s determinations of impracticality when retest); and the %R value for each decision to allow the use of this VCS in additional information is available for compound must be reported in the test 40 CFR part 63, subpart SS, see the particular VCS. report and all field measurements must No applicable VCSs were identified EPA’s Ethylene Production RTR be corrected with the calculated %R for EPA Methods 1A, 2A, 2D, 2F, 2G, 21, proposed amendments in Docket ID No. value for that compound by using the 22, 27, and 316. EPA–HQ–OAR–2017–0357. This Seven VCSs were identified as an standard is not being incorporated by following equation: acceptable alternative to EPA test reference. Reported Results = ((Measured × methods for the purposes of this rule: (4) The VCS California Air Resources Concentration in Stack))/(%R) (1) The VCS ANSI/ASME PTC 19.10– Board (CARB) Method 310, 100. 1981 Part 10, ‘‘Flue and Exhaust Gas ‘‘Determination of Volatile Organic We are incorporating this method at Analyses,’’ is an acceptable alternative Compounds in Consumer Products and 40 CFR 63.14(e)(85) for use in the OLD to EPA Method 3B manual portion only Reactive Organic Compounds in Aerosol NESHAP. and not the instrumental portion. Coating Products,’’ is an acceptable (6) The VCS ISO 16017–2:2003 Therefore, we are adding this standard alternative to EPA Method 311. (R2014), ‘‘Indoor, Ambient and as a footnote to item 1.a.i.(3) of Table 5 However, we are not specifying use of Workplace Air Sampling and Analysis to 40 CFR part 63, subpart EEEE and this method in the OLD NESHAP of Volatile Organic Compounds by incorporate this standard by reference at because CARB Method 310 is designed Sorbent Tube/Thermal Desorption/

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Capillary Gas Chromatography—Part 2: List of Subjects in 40 CFR Part 63 (1) ANSI/ASME PTC 19.10–1981, Diffusive Sampling,’’ is an acceptable Environmental protection, Flue and Exhaust Gas Analyses [Part 10, alternative to EPA Method 325B. This Administrative practice and procedures, Instruments and Apparatus], issued VCS is already incorporated by Air pollution control, Hazardous August 31, 1981, IBR approved for reference in EPA Method 325B. substances, Incorporation by reference, §§ 63.309(k), 63.457(k), 63.772(e) and (7) The VCS ASTM D6196–03(2009), Intergovernmental relations, Reporting (h), 63.865(b), 63.997(e), 63.1282(d) and ‘‘Standard Practice for Selection of and recordkeeping requirements. (g), 63.1625(b), table 5 to subpart EEEE, Sorbents, Sampling and Thermal 63.3166(a), 63.3360(e), 63.3545(a), Desorption Analysis Procedures for Dated: March 12, 2020. 63.3555(a), 63.4166(a), 63.4362(a), Volatile Organic Compounds in Air,’’ is Andrew R. Wheeler, 63.4766(a), 63.4965(a), 63.5160(d), table an acceptable alternative to EPA Administrator. 4 to subpart UUUU, table 3 to subpart Methods 325A and 325B. This VCS is For the reasons set forth in the YYYY, 63.9307(c), 63.9323(a), already incorporated by reference in preamble, the EPA amends 40 CFR part 63.11148(e), 63.11155(e), 63.11162(f), EPA Method 325B. 63 as follows: 63.11163(g), 63.11410(j), 63.11551(a), Additionally, the EPA is using ASTM 63.11646(a), and 63.11945, table 5 to D6886–18, ‘‘Standard Test Method for PART 63—NATIONAL EMISSION subpart DDDDD, table 4 to subpart JJJJJ, Determination of the Weight Percent STANDARDS FOR HAZARDOUS AIR table 4 to subpart KKKKK, tables 4 and Individual Volatile Organic Compounds POLLUTANTS FOR SOURCE 5 of subpart UUUUU, table 1 to subpart in Waterborne Air-Dry Coatings by Gas CATEGORIES ZZZZZ, and table 4 to subpart JJJJJJ. Chromatography.’’ ASTM D6886–18 is * * * * * to be used as one acceptable method to ■ 1. The authority citation for part 63 (h) * * * determine the percent weight of HAP in continues to read as follows: (31) ASTM D2879–83, Standard organic liquid, especially for liquids Authority: 42 U.S.C. 7401, et seq. Method for Vapor Pressure-Temperature that contain a significant amount of Relationship and Initial Decomposition carbon tetrachloride or formaldehyde, Subpart A—General Provisions Temperature of Liquids by Isoteniscope, which are not detected using the Flame Approved 1983, IBR approved for Ionization Detector-based standard in ■ 2. Section 63.14 is amended: §§ 63.111, 63.1402, and 63.12005. the governing method currently cited in ■ a. By revising paragraphs (a) and (32) ASTM D2879–96, Test Method the OLD NESHAP (i.e., EPA Method (e)(1); for Vapor Pressure-Temperature 311). ■ b. In paragraphs (h)(31) and (32), by The ASTM standards newly removing ‘‘63.2406,’’; Relationship and Initial Decomposition incorporated by reference in this rule ■ c. By revising paragraphs (h)(83) and Temperature of Liquids by Isoteniscope, are available to the public for free (85); Approved 1996, IBR approved for viewing online in the Reading Room ■ d. By redesignating paragraphs §§ 63.111, and 63.12005. section on ASTM’s website at https:// (h)(101) through (113) as paragraphs * * * * * www.astm.org/READINGLIBRARY/. In (h)(104) through (115), respectively; (83) ASTM D6348–03, Standard Test addition to this free online viewing ■ e. By revising newly redesignated Method for Determination of Gaseous availability on ASTM’s website, hard paragraphs (h)(91) and (93); and Compounds by Extractive Direct copies and printable versions are ■ f. By adding new paragraph (h)(103). Interface Fourier Transform Infrared available for purchase from ASTM. The revisions and additions read as (FTIR) Spectroscopy, including Annexes follows: A1 through A8, Approved October 1, K. Executive Order 12898: Federal 2003, IBR approved for §§ 63.457(b), Actions To Address Environmental § 63.14 September 5, 2020 Incorporations by reference. 63.997(e), and 63.1349, table 4 to Justice in Minority Populations and subpart DDDD, table 5 to subpart EEEE, (a) Certain material is incorporated by Low-Income Populations table 4 to subpart UUUU, table 4 subpart reference into this part with the The EPA believes that this action does ZZZZ, and table 8 to subpart approval of the Director of the Federal not have disproportionately high and HHHHHHH. adverse human health or environmental Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition * * * * * effects on minority populations, low- (85) ASTM D6348–12e1, Standard income populations, and/or indigenous other than that specified in this section, the EPA must publish notice of change Test Method for Determination of peoples, as specified in Executive Order Gaseous Compounds by Extractive 12898 (59 FR 7629, February 16, 1994). in the Federal Register and the material must be available to the public. All Direct Interface Fourier Transform The documentation for this decision Infrared (FTIR) Spectroscopy, Approved is contained in section IV.A of this approved material is available for inspection at the EPA Docket Center February 1, 2012, IBR approved for preamble and in the technical report, §§ 63.997(e), 63.1571(a), 63.2354(b), Risk and Technology Review—Analysis Reading Room, WJC West Building, Room 3334, 1301 Constitution Avenue table 5 to subpart EEEE, and table 4 to of Demographic Factors for Populations subpart UUUU. Living Near Organic Liquids NW, Washington, DC, telephone Distribution (Non-Gasoline) Source number 202–566–1744, and is available * * * * * Category Operations, available in the from the sources listed below. It is also (91) ASTM D6420–99 (Reapproved docket for this action. available for inspection at the National 2004), Standard Test Method for Archives and Records Administration Determination of Gaseous Organic L. Congressional Review Act (CRA) (NARA). For information on the Compounds by Direct Interface Gas This action is subject to the CRA, and availability of this material at NARA, Chromatography-Mass Spectrometry, the EPA will submit a rule report to email [email protected] or go to (Approved October 1, 2004), IBR each House of the Congress and to the www.archives.gov/federal-register/cfr/ approved for §§ 63.457(b), 63.772(a), Comptroller General of the United ibr-locations.html. 63.772(e), 63.1282(a) and (d), and table States. This action is not a ‘‘major rule’’ * * * * * 8 to subpart HHHHHHH. as defined by 5 U.S.C. 804(2). (e) * * * * * * * *

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(93) ASTM D6420–18, Test Method (e) An affected source that liquids (i.e., no organic liquids are for Determination of Gaseous Organic commenced construction or loaded at any of the transfer racks), you Compounds by Direct Interface Gas reconstruction on or before October 21, must keep documentation that verifies Chromatography/Mass Spectrometry, 2019, must be in compliance with the that each storage tank and transfer rack (Approved November 1, 2018), IBR requirements listed in paragraphs (e)(1) identified in this paragraph (a) is not approved for §§ 63.987(b), 63.997(e), through (5) of this section upon initial required to be controlled. The 63.2354(b), and table 5 to subpart EEEE. startup or July 7, 2023, whichever is documentation must be kept up-to-date * * * * * later. An affected source that (i.e., all such emission sources at a (103) ASTM D6886–18, Standard Test commenced construction or facility are identified in the Method for Determination of the Weight reconstruction after October 21, 2019, documentation regardless of when the Percent Individual Volatile Organic must be in compliance with the documentation was last compiled) and Compounds in Waterborne Air-Dry requirements listed in paragraphs (e)(1) must be in a form suitable and readily Coatings by Gas Chromatography, through (5) of this section upon initial available for expeditious inspection and approved October 1, 2018, IBR approved startup or July 7, 2020, whichever is review according to § 63.10(b)(1), for § 63.2354(c). later. including records stored in electronic * * * * * (1) The requirements for storage tanks form in a separate location. The not requiring control specified in documentation may consist of Subpart EEEE—National Emission § 63.2343(b)(4). identification of the tanks and transfer Standards for Hazardous Air (2) The requirements for storage tanks racks identified in this paragraph (a) on Pollutants: Organic Liquids at an existing affected source specified a plant site plan or process and Distribution (Non-Gasoline) in §§ 63.2346(a)(5) and (6), instrumentation diagram (P&ID). 63.2386(d)(3)(iii), 63.2396(a)(4), footnote ■ (b) Except as specified in paragraph 3. Section 63.2338 is amended by (2) to Table 2 to this subpart, and Table (b)(4) of this section, for each storage revising paragraph (c) introductory text 2b to this subpart. tank subject to this subpart having a to read as follows: (3) The flare requirements specified in capacity of 18.9 cubic meters (5,000 § 63.2338 What parts of my plant does this §§ 63.2346(k), 63.2382(d)(2)(ix), gallons) or more that is not subject to subpart cover? 63.2386(d)(5), 63.2390(h), footnote (1) to control based on the criteria specified in * * * * * Table 2 to this subpart, item 7.d, to Table 2 to this subpart, items 1 through (c) The equipment listed in Table 3 to this subpart, items 1.a.iii and 6, you must comply with the paragraphs (c)(1) through (3) of this 2.a.iii of Table 8 to this subpart, and requirements specified in paragraphs section and used in the identified item 7.e of Table 9 to this subpart. (b)(1) through (3) of this section. (4) The requirements specified in operations is excluded from the affected * * * * * source. §§ 63.2346(l), 63.2350(d), 63.2366(c), 63.2390(f) and (g), 63.2386(c)(11) and (4) Beginning no later than the * * * * * (12), 63.2386(d)(1)(xiii) and (f) through compliance dates specified in ■ 4. Section 63.2342 is amended by (j), 63.2378(e), footnote (1) to Table 9 to § 63.2342(e), the requirements specified revising paragraph (a) introductory text, this subpart, and items 1.a.i and 2.a.ii of in paragraphs (b)(1) through (3) of this adding paragraph (b) introductory text, Table 10 to this subpart. section apply to the following storage revising paragraph (d), and adding (5) The performance testing tanks: paragraph (e) to read as follows: requirements specified in (i) Storage tanks at an existing affected source subject to this subpart having a § 63.2342 When do I have to comply with § 63.2354(b)(6). this subpart? ■ 5. Section 63.2343 is amended by: capacity of 18.9 cubic meters (5,000 ■ a. Revising the introductory text, gallons) or more that are not subject to (a) Except as specified in paragraph control based on the criteria specified in (e) of this section, if you have a new or paragraph (a), and paragraph (b) introductory text; Table 2b to this subpart, items 1 through reconstructed affected source, you must 3. comply with this subpart according to ■ b. Adding paragraph (b)(4); and ■ (ii) Storage tanks at a reconstructed or the schedule identified in paragraph c. Revising paragraph (c)(1)(iii). new affected source subject to this (a)(1), (2), or (3) of this section, as The revisions and additions read as subpart having a capacity of 18.9 cubic applicable. follows: meters (5,000 gallons) or more that are * * * * * § 63.2343 What are my requirements for not subject to control based on the (b) Except as specified in paragraph emission sources not requiring control? criteria specified in Table 2 to this (e) of this section, if you have an This section establishes the subpart, items 3 through 6. existing affected source, you must notification, recordkeeping, and (c) * * * comply with this subpart according to reporting requirements for emission (1) * * * the schedule identified in paragraph sources identified in § 63.2338 that do (iii) If you are already submitting a (b)(1), (2), or (3) of this section, as not require control under this subpart Notification of Compliance Status or a applicable. (i.e., under § 63.2346(a) through (e)). first Compliance report under Such emission sources are not subject to * * * * * § 63.2386(c), you do not need to submit (d) You must meet the notification any other notification, recordkeeping, or a separate Notification of Compliance requirements in §§ 63.2343 and reporting sections in this subpart, Status or first Compliance report for 63.2382(a), as applicable, according to including § 63.2350(c), except as each transfer rack that meets the the schedules in § 63.2382(a) and (b)(1) indicated in paragraphs (a) through (d) conditions identified in this paragraph through (2) and in subpart A of this part. of this section. (c) (i.e., a single Notification of Some of these notifications must be (a) For each storage tank subject to Compliance Status or first Compliance submitted before the compliance dates this subpart having a capacity of less report should be submitted). for the emission limitations, operating than 18.9 cubic meters (5,000 gallons) limits, and work practice standards in and for each transfer rack subject to this * * * * * this subpart. subpart that only unloads organic ■ 6. Section 63.2346 is amended by:

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■ a. Revising paragraphs (a) prevent breathing losses at all times. with paragraph (l) of this section and introductory text, (a)(1) and (2), (a)(4)(ii) The owner or operator shall comply the applicable requirements for transfer and (iv), (a)(4)(v) introductory text, and with paragraphs (a)(4)(v)(A) through (C) racks specified in subpart SS of this (a)(4)(v)(A); of this section for each relief valve. part, for meeting emission limits. ■ b. Adding paragraph (a)(5) and (6); (A) The relief valve shall be (2) Route emissions to fuel gas ■ c. Revising paragraphs (b)(1) and (2), monitored quarterly using the method systems or back into a process as (c), (d)(2), (e), (f), and (i); and described in § 63.180(b). specified in subpart SS of this part. If ■ b. Adding paragraphs (k) and (l). * * * * * you comply with this paragraph, then The revisions and additions read as (5) Beginning no later than the you must also comply with the follows: compliance dates specified in requirements specified in paragraph (l) § 63.2346 What emission limitations, § 63.2342(e), the tank capacity criteria, of this section. operating limits, and work practice liquid vapor pressure criteria, and * * * * * standards must I meet? emission limits specified for storage (c) Equipment leak components. For (a) Storage tanks. Except as specified tanks at an existing affected source in each pump, valve, and sampling in paragraphs (a)(5) and (6) and (l) of Table 2 of this subpart, item 1 no longer connection that operates in organic this section, for each storage tank apply. Instead, for each storage tank at liquids service for at least 300 hours per storing organic liquids that meets the an existing affected source storing year, you must comply with paragraph tank capacity and liquid vapor pressure organic liquids that meets the tank (l) of this section and the applicable criteria for control in Table 2 to this capacity and liquid vapor pressure requirements under subpart TT of this subpart, items 1 through 5, you must criteria for control in Table 2b to this part (control level 1), subpart UU of this comply with paragraph (a)(1), (2), (3), or subpart, items 1 through 3, you must part (control level 2), or subpart H of (4) of this section. For each storage tank comply with paragraph (a)(1), (2), (3), or this part. Pumps, valves, and sampling storing organic liquids that meets the (4) and paragraph (a)(6) of this section. connectors that are insulated to provide tank capacity and liquid vapor pressure (6) Beginning no later than the protection against persistent sub- criteria for control in Table 2 to this compliance dates specified in freezing temperatures are subject to the subpart, item 6, you must comply with § 63.2342(e), tank emissions during ‘‘difficult to monitor’’ provisions in the paragraph (a)(1), (2), or (4) of this storage tank shutdown operations (i.e., applicable subpart selected by the section. emptying and degassing of a storage owner or operator. This paragraph only (1) Meet the emission limits specified tank) for each storage tank at an affected applies if the affected source has at least in Table 2 or 2b to this subpart and source storing organic liquids that meets one storage tank or transfer rack that comply with paragraph (l) of this the tank capacity and liquid vapor meets the applicability criteria for section and the applicable requirements pressure criteria for control in items 3 control in Table 2 or 2b to this subpart. specified in subpart SS of this part, for through 6 of Table 2 to this subpart, or (d) * * * meeting emission limits, except items 1 through 3 of Table 2b to this (2) Ensure that organic liquids are substitute the term ‘‘storage tank’’ at subpart, you must comply with loaded only into transport vehicles that each occurrence of the term ‘‘storage paragraphs (a)(6)(i) through (iii) of this have a current certification in vessel’’ in subpart SS. section during tank emptying and accordance with the U.S. DOT (2) Route emissions to fuel gas degassing until the vapor space qualification and maintenance systems or back into a process as concentration in the tank is less than 10 requirements in 49 CFR part 180, specified in subpart SS of this part. If percent of the lower explosive limit subpart E for cargo tanks and subpart F you comply with this paragraph, then (LEL). The owner or operator must for tank cars. you must also comply with the determine the LEL using process (e) Operating limits. For each high requirements specified in paragraph (l) instrumentation or portable throughput transfer rack, you must meet of this section. measurement devices and follow each operating limit in Table 3 to this * * * * * procedures for calibration and subpart for each control device used to (4) * * * maintenance according to comply with the provisions of this (ii) Transport vehicles must have a manufacturer’s specifications. subpart whenever emissions from the current certification in accordance with (i) Remove organic liquids from the loading of organic liquids are routed to the United States Department of storage tank as much as practicable; the control device. Except as specified Transportation (U.S. DOT) qualification (ii) Comply with either of the in paragraph (k) of this section, for each and maintenance requirements of 49 following: storage tank and low throughput CFR part 180, subparts E (for cargo (A) The requirements of Table 2 or 2b transfer rack, you must comply with tanks) and F (for tank cars). to this subpart, item 1.a.i. as applicable; paragraph (l) of this section and the * * * * * OR, requirements for monitored parameters (iv) No pressure relief device on the (B) The requirements of Table 4 to as specified in subpart SS of this part, storage tank, on the vapor return line, or this subpart, item 1.b. for storage vessels and, during the on the cargo tank or tank car, shall open (iii) Comply with the requirements in loading of organic liquids, for low during loading or as a result of diurnal § 63.2350(d) for each storage tank throughput transfer racks, respectively. temperature changes (breathing losses). shutdown event and maintain records Alternatively, you may comply with the (v) Pressure relief devices must be set necessary to demonstrate compliance operating limits in Table 3 to this to no less than 2.5 pounds per square with the requirements in § 63.2350(d) subpart. inch gauge (psig) at all times to prevent including, if appropriate, records of (f) Surrogate for organic HAP. For breathing losses. Pressure relief devices existing standard site procedures used noncombustion devices, if you elect to may be set at values less than 2.5 psig to empty and degas (deinventory) demonstrate compliance with a percent if the owner or operator provides equipment for safety purposes. reduction requirement in Table 2 or 2b rationale in the notification of (b) * * * to this subpart using total organic compliance status report explaining (1) Meet the emission limits specified compounds (TOC) rather than organic why the alternative value is sufficient to in Table 2 to this subpart and comply HAP, you must first demonstrate,

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subject to the approval of the (12) The phrase ‘‘other than a start-up, to minimize emissions does not require Administrator, that TOC is an shutdown or malfunction’’ from you to make any further efforts to appropriate surrogate for organic HAP § 63.998(b)(5)(ii)(C). reduce emissions if levels required by in your case; that is, for your storage (13) The phrase ‘‘, except as provided the applicable standard have been tank(s) and/or transfer rack(s), the in paragraphs (b)(6)(i)(A) and (B) of this achieved. Determination of whether a percent destruction of organic HAP is section’’ from § 63.998(b)(6)(i). source is operating in compliance with equal to or higher than the percent (14) The second sentence of operation and maintenance destruction of TOC. This demonstration § 63.998(b)(6)(ii). requirements will be based on must be conducted prior to or during (15) § 63.998(c)(1)(ii)(D), (E), (F), and information available to the the initial compliance test. (G). Administrator which may include, but * * * * * (16) § 63.998(d)(3). is not limited to, monitoring results, (i) Safety device. Opening of a safety (17) The phrase ‘‘may be included as review of operation and maintenance device is allowed at any time that it is part of the startup, shutdown, and procedures, review of operation and required to avoid unsafe operating malfunction plan, as required by the maintenance records, and inspection of conditions. Beginning no later than July referencing subpart for the source, or’’ the source. 7, 2023, this paragraph no longer from § 63.1005(e)(4)(i). ■ 8. Section 63.2354 is amended by: applies. (18) The phrase ‘‘may be included as ■ a. Revising paragraphs (a)(2) and (3) part of the startup, shutdown, and * * * * * and (b)(1), (3), (4), and (5); malfunction plan, as required by the (k) Flares. Beginning no later than the ■ b. Adding paragraph (b)(6); referencing subpart for the source, or’’ ■ compliance dates specified in c. Revising paragraph (c); and from § 63.1024(f)(4)(i). ■ § 63.2342(e), for each storage tank and d. Adding paragraph (d). (19) The phrase ‘‘(except periods of low throughput transfer rack that is The revisions and additions read as startup, shutdown, or malfunction)’’ subject to control based on the criteria follows: from § 63.1007(e)(1)(ii)(A). specified in Tables 2 or 2b to this (20) The phrase ‘‘(except periods of § 63.2354 What performance tests, design subpart, if you vent emissions through startup, shutdown, or malfunction)’’ evaluations, and performance evaluations must I conduct? a closed vent system to a flare then you from § 63.1026(e)(1)(ii)(A). must comply with the requirements ■ (a) * * * specified in § 63.2380 instead of the 7. Section 63.2350 is revised to read (2) For each design evaluation you requirements in § 63.987 and the as follows: conduct, you must use the procedures provisions regarding flare compliance § 63.2350 What are my general specified in subpart SS of this part. You assessments at § 63.997(a), (b), and (c). requirements for complying with this must also comply with the requirements (l) Startup, shutdown, and subpart? specified in § 63.2346(l). malfunction. Beginning no later than the (a) You must be in compliance with (3) For each performance evaluation compliance dates specified in the emission limitations, operating of a continuous emission monitoring § 63.2342(e), the referenced provisions limits, and work practice standards in system (CEMS) you conduct, you must specified in paragraphs (l)(1) through this subpart at all times when the follow the requirements in § 63.8(e) and (20) of this section do not apply when equipment identified in § 63.2338(b)(1) paragraph (d) of this section. For CEMS demonstrating compliance with subpart through (5) is in OLD operation. installed after the compliance date H of this part, subpart SS of this part, (b) Except as specified in paragraph specified in § 63.2342(e), conduct a subpart TT of this part, and subpart UU (d) of this section, you must always performance evaluation of each CEMS of this part. operate and maintain your affected within 180 days of installation of the (1) The second sentence of source, including air pollution control monitoring system. § 63.181(d)(5)(i). and monitoring equipment, according to (b)(1) Except as specified in paragraph (2) The second sentence of the provisions in § 63.6(e)(1)(i). (b)(6) of this section, for nonflare control § 63.983(a)(5). (c) Except for emission sources not devices, you must conduct each (3) The phrase ‘‘except during periods required to be controlled as specified in performance test according to the of start-up, shutdown, and malfunction § 63.2343, you must develop a written requirements in § 63.7(e)(1), and either as specified in the referencing subpart’’ startup, shutdown, and malfunction § 63.988(b), § 63.990(b), or § 63.995(b), in § 63.984(a). (SSM) plan according to the provisions using the procedures specified in (4) The phrase ‘‘except during periods in § 63.6(e)(3). Beginning no later than § 63.997(e). of start-up, shutdown and malfunction July 7, 2023, this paragraph no longer * * * * * as specified in the referencing subpart’’ applies; however, for historical (3)(i) In addition to Method 25 or 25A in § 63.985(a). (40 CFR part 60, appendix A–7), to (5) The phrase ‘‘other than start-ups, compliance purposes, a copy of the plan determine compliance with the TOC shutdowns, or malfunctions’’ in must be retained and available emission limit, you may use Method 18 § 63.994(c)(1)(ii)(D). according to the requirements in (6) § 63.996(c)(2)(ii). § 63.2394(c) for five years after July 7, (40 CFR part 60, appendix A–6) or (7) The last sentence of 2023. Method 320 of appendix A to this part § 63.997(e)(1)(i). (d) Beginning no later than the to determine compliance with the total (8) § 63.998(b)(2)(iii). compliance dates specified in organic HAP emission limit. You may (9) The phrase ‘‘other than periods of § 63.2342(e), paragraph (b) of this not use Method 18 or Method 320 of start-ups, shutdowns or malfunctions’’ section no longer applies. Instead, at all appendix A to this part if the control from § 63.998(b)(5)(i)(A). times, you must operate and maintain device is a combustion device, and you (10) The phrase ‘‘other than a start-up, any affected source, including must not use Method 320 of appendix shutdown or malfunction’’ from associated air pollution control A to this part if the gas stream contains § 63.998(b)(5)(i)(B)(3). equipment and monitoring equipment, entrained water droplets. All (11) The phrase ‘‘other than periods of in a manner consistent with safety and compounds quantified by Method 320 start-ups, shutdowns or malfunctions’’ good air pollution control practices for of appendix A to this part must be from § 63.998(b)(5)(i)(C). minimizing emissions. The general duty validated according to Section 13.0 of

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Method 320 of appendix A to this part. be followed, met, documented, and (ii) Pursuant to paragraph (b)(6)(i) of As an alternative to Method 18, for submitted with the data report, even if this section, you must conduct each determining compliance with the total there is no moisture condenser used or performance test according to the organic HAP emission limit, you may the compound is not considered water- requirements in either § 63.988(b), use ASTM D6420–18 (incorporated by soluble. § 63.990(b), or § 63.995(b), using the reference, see § 63.14), under the (iii) You may use ASTM D6348–12e1 procedures specified in § 63.997(e). You conditions specified in paragraph (incorporated by reference, see § 63.14) must also comply with the requirements (b)(3)(ii) of this section. instead of Method 320 of appendix A to specified in § 63.2346(l). (A) If you use Method 18 (40 CFR 60, this part under the conditions specified (c) To determine the HAP content of appendix A–6) or Method 320 of in footnote 4 of Table 5 to this subpart. the organic liquid, you may use Method appendix A to this part to measure (4) If a principal component of the 311 of appendix A to this part, ASTM compliance with the percentage uncontrolled or inlet gas stream to the D6886–18 (incorporated by reference, efficiency limit, you must first control device is formaldehyde, you see § 63.14), or other method approved determine which organic HAP are must use Method 316 of appendix A to by the Administrator. If you use ASTM present in the inlet gas stream (i.e., this part, Method 320 of appendix A to D6886–18 to determine the HAP uncontrolled emissions) using this part, or Method 323 of appendix A content, you must use either Method B knowledge of the organic liquids or the to this part for measuring the or Method B in conjunction with screening procedure described in formaldehyde, except you must not use Method C, as described in section 4.3 of Method 18. In conducting the Method 320 or Method 323 of appendix ASTM D6886–18. In addition, you may performance test, you must analyze A to this part if the gas stream contains use other means, such as voluntary samples collected simultaneously at the entrained water droplets. If you use consensus standards, safety data sheets inlet and outlet of the control device. Method 320 of appendix A to this part, (SDS), or certified product data sheets, Quantify the emissions for the same formaldehyde must be validated to determine the HAP content of the organic HAP identified as present in the according to Section 13.0 of Method 320 organic liquid. If the method you select inlet gas stream for both the inlet and of appendix A to this part. You must to determine the HAP content provides outlet gas streams of the control device. measure formaldehyde either at the inlet HAP content ranges, you must use the (B) If you use Method 18 (40 CFR part and outlet of the control device to upper end of each HAP content range in 60, appendix A–6) or Method 320 of determine control efficiency or at the determining the total HAP content of appendix A to this part, to measure outlet of a combustion device for the organic liquid. The EPA may require compliance with the emission determining compliance with the you to test the HAP content of an concentration limit, you must first emission concentration limit. You may organic liquid using Method 311 of determine which organic HAP are use ASTM D6348–12e1 (incorporated by appendix A to this part or other method present in the inlet gas stream using reference, see § 63.14) instead of Method approved by the Administrator. For knowledge of the organic liquids or the 320 of appendix A to this part under the liquids that contain any amount of screening procedure described in conditions specified in footnote 4 of formaldehyde or carbon tetrachloride, Method 18. In conducting the Table 5 to this subpart. you may not use Method 311of performance test, analyze samples (5) Except as specified in paragraph appendix A to this part. If the results of collected as specified in Method 18 at (b)(6) of this section, you may not the Method 311 of appendix A to this the outlet of the control device. conduct performance tests during part (or any other approved method) are Quantify the control device outlet periods of SSM, as specified in different from the HAP content emission concentration for the same § 63.7(e)(1). determined by another means, the organic HAP identified as present in the (6) Beginning no later than the Method 311 of appendix A to this part inlet or uncontrolled gas stream. compliance dates specified in (or approved method) results will (ii) You may use ASTM D6420–18 § 63.2342(e), paragraphs (b)(1) and (5) of govern. For liquids that contain any (incorporated by reference, see § 63.14), this section no longer apply. Instead, amount of formaldehyde or carbon to determine compliance with the total you must conduct each performance test tetrachloride, if the results of ASTM organic HAP emission limit if the target according to the requirements in D6886–18 using method B or C in concentration for each HAP is between paragraphs (b)(6)(i) and (ii) of this section 4.3 (or any other approved 150 parts per billion by volume and 100 section. method) are different from the HAP ppmv and either of the conditions (i) In lieu of the requirements content determined by another means, specified in paragraph (b)(2)(ii)(A) or (B) specified in § 63.7(e)(1), you must ASTM D6886–18 using method B or C of this section exists. For target conduct performance tests under such in section 4 (or approved method) compounds not listed in Section 1.1 of conditions as the Administrator results will govern. ASTM D6420–18 and not amenable to specifies based on representative (d) Each VOC CEMS must be detection by mass spectrometry, you performance of the affected source for installed, operated, and maintained may not use ASTM D6420–18. the period being tested. Representative according to the requirements of one of (A) The target compounds are those conditions exclude periods of startup the following performance listed in Section 1.1 of ASTM D6420– and shutdown. You may not conduct specifications in appendix B to part 60 18 (incorporated by reference, see performance tests during periods of of this chapter: Performance § 63.14); or malfunction. You must record the Specification 8, Performance (B) For target compounds not listed in process information that is necessary to Specification 8A, Performance Section 1.1 of ASTM D6420–18 document operating conditions during Specification 9, or Performance (incorporated by reference, see § 63.14), the test and include in such record an Specification 15. You must also comply but potentially detected by mass explanation to support that such with the requirements of procedure 1 of spectrometry, you must demonstrate conditions represent normal operation. appendix F to part 60 of this chapter, for recovery of the compound and the Upon request, you must make available CEMS using Performance Specification additional system continuing calibration to the Administrator such records as 8 or 8A. check after each run, as detailed in may be necessary to determine the (1) For CEMS using Performance ASTM D6420–18, Section 10.5.3, must conditions of performance tests. Specification 9 or 15 (40 CFR part 60,

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appendix B), determine the target ■ 10. Section 63.2362 is amended by (1) Description of CEMS installation analyte(s) for calibration using either revising paragraph (b)(2) to read as location. process knowledge or the screening follows: (2) Description of the monitoring procedures of Method 18 (40 CFR part equipment, including the manufacturer 60, appendix A–6). § 63.2362 When must I conduct and model number for all monitoring (2) For CEMS using Performance subsequent performance tests? equipment components and the span of Specification 8A (40 CFR part 60, * * * * * the analyzer. appendix B), conduct the relative (b) * * * (3) Routine quality control and accuracy test audits required under (2) For transport vehicles that you assurance procedures. Procedure 1 (40 CFR part 60, appendix own that do not have vapor collection (4) Conditions that would trigger a F) in accordance with Sections 8 and 11 equipment, you must maintain current CEMS performance evaluation, which of Performance Specification 8 (40 CFR certification in accordance with the U.S. must include, at a minimum, a newly part 60, appendix B). The relative DOT qualification and maintenance installed CEMS; a process change that is accuracy must meet the criteria of requirements in 49 CFR part 180, expected to affect the performance of Section 13.2 of Performance Speciation subparts E (cargo tanks) and F (tank the CEMS; and the Administrator’s 8 (40 CFR part 60, appendix B). cars). request for a performance evaluation (3) For CEMS using Performance ■ 11. Section 63.2366 is revised to read under section 114 of the Clean Air Act. Specification 8 or 8A of 40 CFR part 60, as follows: (5) Ongoing operation and appendix B, calibrate the instrument on maintenance procedures in accordance methane and report the results as carbon § 63.2366 What are my monitoring with the general requirements of installation, operation, and maintenance § 63.8(c)(1) and (3), (c)(4)(ii), and (c)(7) (C1). Use Method 25A of 40 CFR part requirements? 60, appendix A–7 as the reference and (8); method for the relative accuracy tests. (a) You must install, operate, and (6) Ongoing recordkeeping and (4) If you are required to monitor maintain a continuous monitoring reporting procedures in accordance with oxygen in order to conduct system (CMS) on each control device the general requirements of § 63.10(c) concentration corrections, you must use required in order to comply with this and (e)(1). Performance Specification 3 (40 CFR subpart. If you use a continuous (d) For each CEMS, you must locate part 60, appendix B), to certify your parameter monitoring system (CPMS) the sampling probe or other interface at oxygen CEMS, and you must comply (as defined in § 63.981), you must a measurement location such that you with procedure 1 (40 CFR part 60, comply with § 63.2346(l) and the obtain representative measurements of appendix F). Use Method 3A (40 CFR applicable requirements for CPMS in emissions from the regulated source and part 60, appendix A–2), as the reference subpart SS of this part and § 63.671, for comply with the applicable method when conducting a relative the control device being used. If you use requirements specified in § 63.2354(d). accuracy test audit. a CEMS, you must install, operate, and ■ 12. Section 63.2370 is amended by maintain the CEMS according to the ■ 9. Section 63.2358 is amended by revising paragraphs (a) and (c) to read as requirements in § 63.8 and paragraph (d) adding paragraph (b)(3) to read as follows: of this section, except as specified in follows: paragraph (c) of this section. § 63.2370 How do I demonstrate initial § 63.2358 By what date must I conduct (b) For nonflare control devices compliance with the emission limitations, performance tests and other initial controlling storage tanks and low operating limits, and work practice compliance demonstrations? throughput transfer racks, you must standards? * * * * * submit a monitoring plan according to (a) You must demonstrate initial (b) * * * the requirements in subpart SS of this compliance with each emission (3) For storage tanks at existing part, for monitoring plans. You must limitation and work practice standard affected sources that commenced also comply with the requirements that applies to you as specified in construction or reconstruction on or specified in § 63.2346(l). Tables 6 and 7 to this subpart. before October 21, 2019, you must (c) Beginning no later than the * * * * * demonstrate initial compliance with the compliance dates specified in (c) You must submit the results of the emission limitations listed in Table 2b § 63.2342(e), you must keep the written initial compliance determination in the to this subpart within 180 days of either procedures required by § 63.8(d)(2) on Notification of Compliance Status the initial startup or July 7, 2023, record for the life of the affected source according to the requirements in whichever is later, except as provided in or until the affected source is no longer § 63.2382(d). If the initial compliance paragraphs (b)(3)(i) and (ii) of this subject to the provisions of this part, to determination includes a performance section. be made available for inspection, upon test and the results are submitted (i) For storage tanks with an existing request, by the Administrator. If the electronically via the Compliance and internal or external floating roof, performance evaluation plan is revised, Emissions Data Reporting Interface complying with item 1.a.ii. in Table 2b you must keep previous (i.e., (CEDRI) in accordance with to this subpart and item 1.a. in Table 4 superseded) versions of the performance § 63.2386(g), the unit(s) tested, the to this subpart, you must conduct your evaluation plan on record to be made pollutant(s) tested, and the date that initial compliance demonstration the available for inspection, upon request, such performance test was conducted next time the storage tank is emptied by the Administrator, for a period of 5 may be submitted in the Notification of and degassed, but not later than July 7, years after each revision to the plan. The Compliance Status in lieu of the 2030. program of corrective action should be performance test results. The (ii) For storage tanks complying with included in the plan required under performance test results must be item 1.a.ii. in Table 2b to this subpart § 63.8(d)(2). In addition to the submitted to CEDRI by the date the and item 1.b. or 1.c. in Table 4 to this information required in § 63.8(d)(2), Notification of Compliance Status is subpart, you must comply within 180 your written procedures for CEMS must submitted. days after July 7, 2023. include the information in paragraphs ■ 13. Section 63.2374 is amended by * * * * * (c)(1) through (6) of this section: revising paragraph (a) to read as follows:

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§ 63.2374 When do I monitor and collect subpart must be incorporated into the control storage tank breathing loss data to demonstrate continuous compliance SSM plan. emissions, during which the control and how do I use the collected data? * * * * * device does not meet the emission (a) You must monitor and collect data (c) Except as specified in paragraph limits in Table 2 or 2b to this subpart, according to subpart SS of this part, and (e) of this section, periods of planned must not exceed 240 hours per year. The paragraphs (b) and (c) of this section. routine maintenance of a control device level of material in the storage vessel You must also comply with the used to control storage tanks or transfer shall not be increased during periods requirements specified in § 63.2346(l). racks, during which the control device that the closed-vent system or control * * * * * does not meet the emission limits in device is bypassed to perform routine ■ 14. Section 63.2378 is amended by Table 2 to this subpart, must not exceed maintenance. revising paragraphs (a), (b) introductory 240 hours per year. (4) If you elect to route emissions text, (b)(2), (c), and (d), and adding (d) Except as specified in paragraph from storage tanks to a fuel gas system paragraphs (e) and (f) to read as follows: (e) of this section, if you elect to route or to a process, as allowed by emissions from storage tanks or transfer § 63.982(d), to comply with the § 63.2378 How do I demonstrate racks to a fuel gas system or to a emission limits in Table 2 or 2b to this continuous compliance with the emission process, as allowed by § 63.982(d), to subpart, the total aggregate amount of limitations, operating limits, and work time during which the breathing loss practice standards? comply with the emission limits in Table 2 to this subpart, the total emissions bypass the fuel gas system or (a) You must demonstrate continuous aggregate amount of time during which process during the calendar year compliance with each emission the emissions bypass the fuel gas system without being routed to a control limitation, operating limit, and work or process during the calendar year device, for all reasons (except product practice standard in Tables 2 through 4 without being routed to a control changeovers of flexible operation units to this subpart that applies to you device, for all reasons (except SSM or and periods when a storage tank has according to the methods specified in product changeovers of flexible been emptied and degassed), must not subpart SS of this part, and in Tables 8 operation units and periods when a exceed 240 hours. The level of material through 10 to this subpart, as storage tank has been emptied and in the storage vessel shall not be applicable. You must also comply with degassed), must not exceed 240 hours. increased during periods that the fuel the requirements specified in (e) Beginning no later than the gas system or process is bypassed to § 63.2346(l). compliance dates specified in perform routine maintenance. (b) Except as specified in paragraph § 63.2342(e), paragraphs (b) through (d) (f) The CEMS data must be reduced to (e) of this section, you must follow the of this section no longer apply. Instead, daily averages computed using valid requirements in § 63.6(e)(1) and (3) you must be in compliance with each data consistent with the data availability during periods of startup, shutdown, emission limitation, operating limit, and requirements specified in malfunction, or nonoperation of the work practice standard specified in § 63.999(c)(6)(i)(B) through (D), except affected source or any part thereof. In paragraph (a) of this section at all times, monitoring data also are sufficient to addition, the provisions of paragraphs except during periods of nonoperation constitute a valid hour of data if (b)(1) through (3) of this section apply. of the affected source (or specific measured values are available for at * * * * * portion thereof) resulting in cessation of least two of the 15-minute periods (2) The owner or operator must not the emissions to which this subpart during an hour when calibration, shut down control devices or applies and must comply with the quality assurance, or maintenance monitoring systems that are required or requirements specified in paragraphs activities are being performed. In utilized for achieving compliance with (e)(1) through (5) of this section, as computing daily averages to determine this subpart during periods of SSM applicable. Equipment subject to the compliance with this subpart, you must while emissions are being routed to work practice standards for equipment exclude monitoring data recorded such items of equipment if the leak components in Table 4 to this during CEMS breakdowns, out of shutdown would contravene subpart, item 4 are not subject to this control periods, repairs, maintenance requirements of this subpart applicable paragraph (e). periods, calibration checks, or other to such items of equipment. This (1) Except as specified in paragraphs quality assurance activities. paragraph (b)(2) does not apply if the (e)(3) through (5) of this section, the use ■ 15. Section 63.2380 is added before item of equipment is malfunctioning. of a bypass line at any time on a closed the undesignated center heading This paragraph (b)(2) also does not vent system to divert a vent stream to ‘‘Notifications, Reports, and Records’’ to apply if the owner or operator shuts the atmosphere or to a control device read as follows: down the compliance equipment (other not meeting the requirements specified than monitoring systems) to avoid in paragraph (a) of this section is an § 63.2380 What are my requirements for damage due to a contemporaneous SSM emissions standards deviation. certain flares? of the affected source or portion thereof. (2) If you are subject to the bypass (a) Beginning no later than the If the owner or operator has reason to monitoring requirements of compliance dates specified in believe that monitoring equipment § 63.983(a)(3), then you must continue § 63.2342(e), if you reduce organic HAP would be damaged due to a to comply with the requirements in emissions by venting emissions through contemporaneous SSM of the affected § 63.983(a)(3) and the recordkeeping a closed vent system to a steam-assisted, source of portion thereof, the owner or and reporting requirements in air-assisted, or non-assisted flare to operator must provide documentation §§ 63.998(d)(1)(ii) and 63.999(c)(2), in control emissions from a storage tank, supporting such a claim in the next addition to § 63.2346(l), the low throughput transfer rack, or high Compliance report required in Table 11 recordkeeping requirements specified in throughput transfer rack that is subject to this subpart, item 1. Once approved § 63.2390(g), and the reporting to control based on the criteria specified by the Administrator, the provision for requirements specified in in Tables 2 or 2b to this subpart, then ceasing to collect, during a SSM, § 63.2386(c)(12). the flare requirements specified in monitoring data that would otherwise (3) Periods of planned routine § 63.11(b); subpart SS of this part; the be required by the provisions of this maintenance of a control device used to provisions specified in items 7.a

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through 7.d of Table 3 to this subpart; § 63.670(d) through (f), as applicable. (5) You must perform an initial Table 8 to this subpart; and the However, instead of complying with calibration to identify mass fragment provisions specified in items 1.a.iii and § 63.670(r)(3)(iii), you must also submit overlap and response factors for the 2.a.iii, and items 7.a through 7.d.2 of the alternative means of emissions target compounds. Table 9 to this subpart no longer apply. limitation request to the following (6) You must meet applicable Instead, you must meet the applicable address: U.S. Environmental Protection requirements in Performance requirements for flares as specified in Agency, Office of Air Quality Planning Specification (PS) 9 (40 CFR part 60, §§ 63.670 and 63.671, including the and Standards, Sector Policies and appendix B) for continuous monitoring provisions in Tables 12 and 13 to Programs Division, U.S. EPA Mailroom system acceptance including, but not subpart CC of this part, except as (E143–01), Attention: Organic Liquids limited to, performing an initial multi- specified in paragraphs (b) through (m) Distribution Sector Lead, 109 T.W. point calibration check at three of this section. For purposes of Alexander Drive, Research Triangle concentrations following the procedure compliance with this paragraph, the Park, NC 27711. Electronic copies in in Section 10.1 of PS 9 and performing following terms are defined in § 63.641: lieu of hard copies may also be the periodic calibration requirements Assist air, assist steam, center steam, submitted to [email protected]. listed for gas chromatographs in Table combustion zone, combustion zone gas, (j) If you choose to determine 13 to subpart CC of this part, for the flare, flare purge gas, flare supplemental compositional analysis for net heating process mass spectrometer. You may gas, flare sweep gas, flare vent gas, value with a continuous process mass use the alternative sampling line lower steam, net heating value, spectrometer, then you must comply temperature allowed under Net Heating perimeter assist air, pilot gas, premix with the requirements specified in Value by Gas Chromatograph in Table assist air, total steam, and upper steam. paragraphs (j)(1) through (7) of this 13 to subpart CC of this part. (b) The following phrases in section. (7) The average instrument calibration § 63.670(c) do not apply: (1) You must meet the requirements error (CE) for each calibration (1) ‘‘Specify the smokeless design in § 63.671(e)(2). You may augment the compound at any calibration capacity of each flare and’’; and minimum list of calibration gas concentration must not differ by more (2) ‘‘And the flare vent gas flow rate components found in § 63.671(e)(2) with than 10 percent from the certified is less than the smokeless design compounds found during a pre-survey cylinder gas value. The CE for each capacity of the flare.’’ or known to be in the gas through component in the calibration blend (c) The phrase ‘‘and the flare vent gas process knowledge. must be calculated using the following flow rate is less than the smokeless (2) Calibration gas cylinders must be equation: design capacity of the flare’’ in certified to an accuracy of 2 percent and § 63.670(d) does not apply. traceable to National Institute of (d) Section 63.670(j)(6)(ii) does not Standards and Technology (NIST) apply. Instead submit the information standards. Where: required by § 63.670(j)(6)(ii) with the (3) For unknown gas components that Notification of Compliance Status have similar analytical mass fragments Cm = Average instrument response (ppm) Ca = Certified cylinder gas value (ppm) according to § 63.2382(d)(2)(ix). to calibration compounds, you may (e) Section 63.670(o) does not apply. report the unknowns as an increase in (k) If you use a gas chromatograph or (f) Substitute ‘‘pilot flame or flare the overlapped calibration gas mass spectrometer for compositional flame’’ or each occurrence of ‘‘pilot compound. For unknown compounds analysis for net heating value, then you flame.’’ that produce mass fragments that do not may choose to use the CE of NHV (g) Substitute ‘‘affected source’’ for overlap calibration compounds, you measured versus the cylinder tag value each occurrence of ‘‘petroleum may use the response factor for the NHV as the measure of agreement for refinery.’’ nearest molecular weight hydrocarbon daily calibration and quarterly audits in (h) Each occurrence of ‘‘refinery’’ does in the calibration mix to quantify the lieu of determining the compound- not apply. unknown component’s NHVvg. specific CE. The CE for NHV at any (i) You may elect to comply with the (4) You may use the response factor calibration level must not differ by more alternative means of emissions for n-pentane to quantify any unknown than 10 percent from the certified limitation requirements specified in components detected with a higher cylinder gas value. The CE for must be § 63.670(r)in lieu of the requirements in molecular weight than n-pentane. calculated using the following equation:

Where: reporting requirements specified in § 63.2382 What notifications must I submit NHVmeasured = Average instrument § 63.2382(d)(2)(ix) and § 63.2386(d)(5). and when and what information should be response (Btu/scf) submitted? ■ 16. Section 63.2382 is amended by NHVa = Certified cylinder gas value (Btu/scf) revising paragraphs (a), (d)(1), (d)(2) (a) You must submit each notification (l) Instead of complying with introductory text, (d)(2)(ii), (vi), and in subpart SS of this part, Table 12 to § 63.670(p), you must keep the flare (vii), and adding paragraphs (d)(2)(ix) this subpart, and paragraphs (b) through monitoring records specified in and (d)(3) to read as follows: (d) of this section that applies to you. § 63.2390(h). You must submit these notifications according to the schedule in Table 12 to (m) Instead of complying with this subpart and as specified in § 63.670(q), you must comply with the paragraphs (b) through (d) of this

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section. You must also comply with the readings, heat content determinations paragraphs (c) through (j) of this section requirements specified in § 63.2346(l). (including information required by that applies to you. You must also * * * * * § 63.670(j)(6)(i), as applicable), flow rate comply with the requirements specified (d) * * * measurements, and exit velocity in § 63.2346(l). (1) Notification of Compliance Status. determinations made during the initial (b) Unless the Administrator has If you are required to conduct a visible emissions demonstration approved a different schedule for performance test, design evaluation, or required by § 63.670(h), as applicable; submission of reports under § 63.10(a), other initial compliance demonstration and all periods during the compliance you must submit each report according as specified in Table 5, 6, or 7 to this determination when the pilot flame or to Table 11 to this subpart and by the subpart, you must submit a Notification flare flame is absent. dates shown in paragraphs (b)(1) of Compliance Status. (3) Submitting Notification of through (3) of this section, by the dates (2) Notification of Compliance Status Compliance Status. Beginning no later shown in subpart SS of this part, and by requirements. The Notification of than the compliance dates specified in the dates shown in Table 12 to this Compliance Status must include the § 63.2342(e), you must submit all subpart, whichever are applicable. information required in § 63.999(b) and subsequent Notification of Compliance * * * * * in paragraphs (d)(2)(i) through (ix) of Status reports to the EPA via CEDRI, (c) First Compliance report. The first this section. which can be accessed through EPA’s Compliance report must contain the * * * * * Central Data Exchange (CDX) (https:// information specified in paragraphs (ii) The results of emissions profiles, cdx.epa.gov/). If you claim some of the (c)(1) through (12) of this section, as performance tests, engineering analyses, information required to be submitted via well as the information specified in design evaluations, flare compliance CEDRI is confidential business paragraph (d) of this section. assessments, inspections and repairs, information (CBI), then submit a * * * * * and calculations used to demonstrate complete report, including information (2) Statement by a responsible official, initial compliance according to Tables 6 claimed to be CBI, to the EPA. Submit including the official’s name, title, and and 7 to this subpart. For performance the file on a compact disc, flash drive, signature, certifying that, based on tests, results must include descriptions or other commonly used electronic information and belief formed after of sampling and analysis procedures storage medium and clearly mark the reasonable inquiry, the statements and and quality assurance procedures. If medium as CBI. Mail the electronic information in the report are true, performance test results are submitted medium to U.S. Environmental accurate, and complete. If your report is electronically via CEDRI in accordance Protection Agency, Office of Air Quality submitted via CEDRI, the certifier’s with § 63.2386(g), the unit(s) tested, the Planning and Standards, Sector Policies electronic signature during the pollutant(s) tested, and the date that and Programs Division, U.S. EPA submission process replaces this such performance test was conducted Mailroom (C404–02), Attention: Organic requirement. may be submitted in the Notification of Liquids Distribution Sector Lead, 4930 (3) Date of report and beginning and Compliance Status in lieu of the Old Page Rd., Durham, NC 27703. The ending dates of the reporting period. performance test results. The same file with the CBI omitted must be You are no longer required to provide performance test results must be submitted to the EPA via EPA’s CDX as the date of report when the report is submitted to CEDRI by the date the described earlier in this paragraph. You submitted via CEDRI. Notification of Compliance Status is may assert a claim of EPA system outage * * * * * submitted. or force majeure for failure to timely (5) Except as specified in paragraph * * * * * comply with this reporting requirement (c)(11) of this section, if you had a SSM (vi) The applicable information provided you meet the requirements during the reporting period and you specified in § 63.1039(a)(1) through (3) outlined in § 63.2386(i) or (j), as took actions consistent with your SSM for all pumps and valves subject to the applicable. plan, the Compliance report must work practice standards for equipment ■ 17. Section 63.2386 is amended by: include the information described in leak components in Table 4 to this ■ a. Revising paragraphs (a), (b) § 63.10(d)(5)(i). subpart, item 4. introductory text, (c) introductory text, * * * * * (vii) If you are complying with the (c)(2), (3), (5), and (9); (9) A listing of all transport vehicles vapor balancing work practice standard ■ b. Adding paragraphs (c)(11) and (12); into which organic liquids were loaded for transfer racks according to Table 4 to ■ c. Revising paragraph (d) introductory at transfer racks that are subject to this subpart, item 3.a, include a text, (d)(1) introductory text, (d)(1)(i) control based on the criteria specified in statement to that effect and a statement through (d)(1)(vii), (ix), and (x); Table 2 to this subpart, items 7 through that the pressure vent settings on the ■ d. Adding paragraphs (d)(1)(xiii) 10, during the previous 6 months for affected storage tanks are greater than or through (xv); which vapor tightness documentation as equal to 2.5 psig. ■ e. Revising paragraph (d)(2)(i); required in § 63.2390(c) was not on file ■ * * * * * f. Adding paragraph (d)(2)(iv); at the facility. ■ g. Revising paragraph (d)(3); (ix) For flares subject to the ■ * * * * * requirements of § 63.2380, you must h. Adding paragraph (d)(5); ■ i. Revising paragraph (e); and (11) Beginning no later than the also submit the information in this ■ j. Adding paragraphs (f) through (j). compliance dates specified in paragraph in a supplement to the The revisions and additions read as § 63.2342(e), paragraph (c)(5) of this Notification of Compliance Status follows: section no longer applies. within 150 days after the first applicable (12) Beginning no later than the compliance date for flare monitoring. In § 63.2386 What reports must I submit and compliance dates specified in lieu of the information required in when and what information is to be § 63.2342(e), for bypass lines subject to § 63.987(b), the Notification of submitted in each? the requirements § 63.2378(e)(1) and (2), Compliance Status must include flare (a) You must submit each report in the compliance report must include the design (e.g., steam-assisted, air-assisted, subpart SS of this part, Table 11 to this start date, start time, duration in hours, or non-assisted); all visible emission subpart, Table 12 to this subpart, and in estimate of the volume of gas in

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standard cubic feet (scf), the (x) The equipment manufacturer(s) specified in § 63.2342(e), you must concentration of organic HAP in the gas and model number(s) of the CMS and include a listing of any storage tanks at in ppmv and the resulting mass the pollutant or parameter monitored. an existing affected source that became emissions of organic HAP in pounds * * * * * subject to controls based on the criteria that bypass a control device. For periods (xiii) Beginning no later than the for control specified in Table 2b to this when the flow indicator is not compliance dates specified in subpart, items 1 through 3, since the operating, report the start date, start § 63.2342(e), paragraphs (d)(1)(iv) and filing of the last Compliance report. time, and duration in hours. (vi) of this section no longer apply. For * * * * * (d) Subsequent Compliance reports. each instance, report the start date, start (5) Beginning no later than the Subsequent Compliance reports must time, and duration in hours of each compliance dates specified in contain the information in paragraphs failure. For each failure, the report must § 63.2342(e), for each flare subject to the (c)(1) through (9) and paragraph (c)(12) include a list of the affected sources or requirements in § 63.2380, the of this section and, where applicable, equipment, an estimate of the quantity compliance report must include the the information in paragraphs (d)(1) in pounds of each regulated pollutant items specified in paragraphs (d)(5)(i) through (5) of this section. emitted over any emission limit, a through (iii) of this section in lieu of the (1) For each deviation from an description of the method used to information required in § 63.999(c)(3). emission limitation occurring at an estimate the emissions, and the cause of (i) Records as specified in affected source where you are using a the deviation (including unknown § 63.2390(h)(1) for each 15-minute block CMS to comply with an emission cause, if applicable), as applicable, and during which there was at least one limitation in this subpart, or for each the corrective action taken. minute when regulated material is CMS that was inoperative or out of (xiv) Corrective actions taken for a routed to a flare and no pilot flame or control during the reporting period, you CMS that was inoperative or out of flare flame is present. Include the start must include in the Compliance report control. and stop time and date of each 15- the applicable information in (xv) Total process operating time minute block. paragraphs (d)(1)(i) through (xv) of this during the reporting period. (ii) Visible emission records as section. This includes periods of SSM. (2) * * * specified in § 63.2390(h)(2)(iv) for each (i) The date and time that each (i) Except as specified in paragraph period of 2 consecutive hours during malfunction started and stopped, and (d)(2)(iv) of this section, for each storage which visible emissions exceeded a the nature and cause of the malfunction tank and transfer rack subject to control total of 5 minutes. (if known). requirements, include periods of (iii) The periods specified in (ii) The start date, start time, and planned routine maintenance during § 63.2390(h)(6). Indicate the date and duration in hours for each period that which the control device did not start and end time for the period, and each CMS was inoperative, except for comply with the applicable emission the net heating value operating zero (low-level) and high-level checks. limits in Table 2 to this subpart. parameter(s) determined following the (iii) The start date, start time, and * * * * * methods in § 63.670(k) through (n) as duration in hours for each period that (iv) Beginning no later than the applicable. the CMS that was out of control. compliance dates specified in (e) Each affected source that has (iv) Except as specified in paragraph § 63.2342(e), paragraph (d)(2)(i) of this obtained a title V operating permit (d)(1)(xiii) of this section, the date and section no longer applies. Instead for pursuant to 40 CFR part 70 or 40 CFR time that each deviation started and each storage tank subject to control part 71 must report all deviations as stopped, and whether each deviation requirements, include the start date, defined in this subpart in the occurred during a period of SSM, or start time, end date and end time of any semiannual monitoring report required during another period. planned routine maintenance during by 40 CFR 70.6(a)(3)(iii)(A) or (v) The total duration in hours of all which the control device used to control 71.6(a)(3)(iii)(A). If an affected source deviations for each CMS during the storage tank breathing losses did not submits a Compliance report pursuant reporting period, and the total duration comply with the applicable emission to Table 11 to this subpart along with, as a percentage of the total emission limits in Table 2 or 2b to this subpart. or as part of, the semiannual monitoring source operating time during that (3)(i) Except as specified in paragraph report required by 40 CFR reporting period. (d)(3)(iii) of this section, a listing of any 70.6(a)(3)(iii)(A) or 71.6(a)(3)(iii)(A), and (vi) Except as specified in paragraph storage tank that became subject to the Compliance report includes all (d)(1)(xiii) of this section, a breakdown controls based on the criteria for control required information concerning of the total duration of the deviations specified in Table 2 to this subpart, deviations from any emission limitation during the reporting period into those items 1 through 6, since the filing of the in this subpart, we will consider that are due to startup, shutdown, last Compliance report. submission of the Compliance report as control equipment problems, process (ii) A listing of any transfer rack that satisfying any obligation to report the problems, other known causes, and became subject to controls based on the same deviations in the semiannual other unknown causes. criteria for control specified in Table 2 monitoring report. However, submission (vii) The total duration in hours of to this subpart, items 7 through 10, of a Compliance report will not CMS downtime for each CMS during the since the filing of the last Compliance otherwise affect any obligation the reporting period, and the total duration report. affected source may have to report of CMS downtime as a percentage of the (iii) Beginning no later than the deviations from permit requirements to total emission source operating time compliance dates specified in the applicable title V permitting during that reporting period. § 63.2342(e), the emission limits authority. * * * * * specified in Table 2 to this subpart for (f) Beginning no later than the (ix) A brief description of the storage tanks at an existing affected compliance dates specified in emission source(s) at which the CMS source no longer apply as specified in § 63.2342(e), you must submit all deviation(s) occurred or at which the § 63.2346(a)(5). Instead, beginning no Compliance reports to the EPA via CMS was inoperative or out of control. later than the compliance dates CEDRI, which can be accessed through

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EPA’s CDX (https://cdx.epa.gov/). You The data must be submitted in a file supported by the EPA’s ERT as listed on must use the appropriate electronic format generated through the use of the the EPA’s ERT website at the time of the report template on the CEDRI website EPA’s ERT. Alternatively, you may evaluation. The results of the (https://www.epa.gov/electronic- submit an electronic file consistent with performance evaluation must be reporting-air-emissions/compliance- the XML schema listed on the EPA’s included as an attachment in the ERT or and-emissions-data-reporting-interface- ERT website. an alternate electronic file consistent cedri) for this subpart. The date report (2) Data collected using test methods with the XML schema listed on the templates become available will be that are not supported by the EPA’s ERT EPA’s ERT website. Submit the ERT listed on the CEDRI website. Unless the as listed on the EPA’s ERT website at generated package or alternative file to Administrator or delegated state agency the time of the test. The results of the the EPA via CEDRI. or other authority has approved a performance test must be included as an (3) CBI. If you claim some of the different schedule for submission of attachment in the ERT or an alternate information submitted under paragraph reports under §§ 63.9(i) and 63.10(a), the electronic file consistent with the XML (h)(1) or (2) of this section is CBI, then report must be submitted by the schema listed on the EPA’s ERT you must submit a complete file, deadline specified in this subpart, website. Submit the ERT generated including information claimed to be regardless of the method in which the package or alternative file to the EPA via CBI, to the EPA. The file must be report is submitted. If you claim some CEDRI. generated through the use of the EPA’s of the information required to be (3) CBI. If you claim some of the ERT or an alternate electronic file submitted via CEDRI is CBI, submit a information submitted under paragraph consistent with the XML schema listed complete report, including information (g)(1) or (2) of this section is CBI, then on the EPA’s ERT website. Submit the claimed to be CBI, to the EPA. The you must submit a complete file, file on a compact disc, flash drive, or report must be generated using the including information claimed to be other commonly used electronic storage appropriate form on the CEDRI website CBI, to the EPA. The file must be medium and clearly mark the medium or an alternate electronic file consistent generated through the use of the EPA’s as CBI. Mail the electronic medium to with the extensible markup language ERT or an alternate electronic file U.S. EPA/OAQPS/CORE CBI Office, (XML) schema listed on the CEDRI consistent with the XML schema listed Attention: Group Leader, Measurement website. Submit the file on a compact on the EPA’s ERT website. Submit the Policy Group, MD C404–02, 4930 Old disc, flash drive, or other commonly file on a compact disc, flash drive, or Page Rd., Durham, NC 27703. The same used electronic storage medium and other commonly used electronic storage file with the CBI omitted must be clearly mark the medium as CBI. Mail medium and clearly mark the medium submitted to the EPA via the EPA’s CDX the electronic medium to U.S. as CBI. Mail the electronic medium to as described in paragraphs (h)(1) and (2) Environmental Protection Agency, U.S. EPA/OAQPS/CORE CBI Office, of this section. Office of Air Quality Planning and Attention: Group Leader, Measurement (i) If you are required to electronically Standards, Sector Policies and Programs Policy Group, MD C404–02, 4930 Old submit a report through CEDRI in the Division, U.S. EPA Mailroom (C404–02), Page Rd., Durham, NC 27703. The same EPA’s CDX, you may assert a claim of Attention: Organic Liquids Distribution file with the CBI omitted must be EPA system outage for failure to timely Sector Lead, 4930 Old Page Rd., submitted to the EPA via EPA’s CDX as comply with the reporting requirement. Durham, NC 27703. The same file with described in paragraphs (g)(1) and (2) of To assert a claim of EPA system outage, the CBI omitted must be submitted to this section. you must meet the requirements the EPA via EPA’s CDX as described (h) Beginning no later than the outlined in paragraphs (i)(1) through (7) earlier in this paragraph. You may assert compliance dates specified in of this section. a claim of EPA system outage or force § 63.2342(e), you must start submitting (1) You must have been or will be majeure for failure to timely comply performance evaluation reports in precluded from accessing CEDRI and with this reporting requirement accordance with this paragraph. Unless submitting a required report within the provided you meet the requirements otherwise specified in this subpart, time prescribed due to an outage of outlined in paragraph (i) or (j) of this within 60 days after the date of either the EPA’s CEDRI or CDX systems. section, as applicable. completing each CEMS performance (2) The outage must have occurred (g) Beginning no later than the evaluation (as defined in § 63.2), you within the period of time beginning five compliance dates specified in must submit the results of the business days prior to the date that the § 63.2342(e), you must start submitting performance evaluation following the submission is due. performance test reports in accordance procedures specified in paragraphs (3) The outage may be planned or with this paragraph. Unless otherwise (h)(1) through (3) of this section. unplanned. specified in this subpart, within 60 days (1) Performance evaluations of CEMS (4) You must submit notification to after the date of completing each measuring relative accuracy test audit the Administrator in writing as soon as performance test required by this (RATA) pollutants that are supported by possible following the date you first subpart, you must submit the results of the EPA’s ERT as listed on the EPA’s knew, or through due diligence should the performance test following the ERT website at the time of the have known, that the event may cause procedures specified in paragraphs evaluation. Submit the results of the or has caused a delay in reporting. (g)(1) through (3) of this section. performance evaluation to the EPA via (5) You must provide to the (1) Data collected using test methods CEDRI, which can be accessed through Administrator a written description supported by the EPA’s Electronic the EPA’s CDX. The data must be identifying: Reporting Tool (ERT) as listed on the submitted in a file format generated (i) The date(s) and time(s) when CDX EPA’s ERT website (https:// through the use of the EPA’s ERT. or CEDRI was accessed and the system www.epa.gov/electronic-reporting-air- Alternatively, you may submit an was unavailable; emissions/electronic-reporting-tool-ert) electronic file consistent with the XML (ii) A rationale for attributing the at the time of the test. Submit the results schema listed on the EPA’s ERT delay in reporting beyond the regulatory of the performance test to the EPA via website. deadline to EPA system outage; CEDRI, which can be accessed through (2) Performance evaluations of CEMS (iii) Measures taken or to be taken to the EPA’s CDX (https://cdx.epa.gov/). measuring RATA pollutants that are not minimize the delay in reporting; and

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(iv) The date by which you propose to (5) In any circumstance, the reporting part 60, appendix A–8 testing, required report, or if you have already met the must occur as soon as possible after the in Table 5 to this subpart, item 2, has reporting requirement at the time of the force majeure event occurs. been performed. Various methods for notification, the date you reported. ■ 18. Section 63.2390 is amended by: the record of verification can be used, (6) The decision to accept the claim ■ a. Revising paragraphs (b)(1) and (2); such as: A check-off on a log sheet, a list of EPA system outage and allow an ■ b. Adding paragraph (b)(3); of U.S. DOT serial numbers or Method extension to the reporting deadline is ■ c. Revising paragraphs (c) 27 data, or a position description for solely within the discretion of the introductory text, (c)(2) and (3), and (d); gate security showing that the security Administrator. and guard will not allow any trucks on site (7) In any circumstance, the report ■ d. Adding paragraphs (f) through (h). that do not have the appropriate must be submitted electronically as The revisions and additions read as documentation. soon as possible after the outage is follows: (d) You must keep records of the total resolved. actual annual facility-level organic (j) If you are required to electronically § 63.2390 What records must I keep? liquid loading volume as defined in submit a report through CEDRI in the * * * * * § 63.2406 through transfer racks to EPA’s CDX, you may assert a claim of (b) * * * document the applicability, or lack force majeure for failure to timely (1) Except as specified in paragraph thereof, of the emission limitations in comply with the reporting requirement. (h) of this section for flares, you must Table 2 to this subpart, items 7 through To assert a claim of force majeure, you keep all records identified in subpart SS 10. must meet the requirements outlined in of this part and in Table 12 to this * * * * * paragraphs (j)(1) through (5) of this subpart that are applicable, including (f) Beginning no later than the section. records related to notifications and compliance dates specified in (1) You may submit a claim if a force reports, SSM, performance tests, CMS, § 63.2342(e), for each deviation from an majeure event is about to occur, occurs, and performance evaluation plans. You emission limitation, operating limit, and or has occurred or there are lingering must also comply with the requirements work practice standard specified in effects from such an event within the specified in § 63.2346(l). paragraph (a) of this section, you must period of time beginning five business (2) Except as specified in paragraph keep a record of the information days prior to the date the submission is (h) of this section for flares, you must specified in paragraph (f)(1) through (3) due. For the purposes of this paragraph, keep the records required to show of this section. a force majeure event is defined as an continuous compliance, as required in (1) In the event that an affected unit event that will be or has been caused by subpart SS of this part and in Tables 8 fails to meet an applicable standard, circumstances beyond the control of the through 10 to this subpart, with each record the number of failures. For each affected facility, its contractors, or any emission limitation, operating limit, and failure record the date, time and entity controlled by the affected facility work practice standard that applies to duration of each failure. that prevents you from complying with you. You must also comply with the (2) For each failure to meet an the requirement to submit a report requirements specified in § 63.2346(l). applicable standard, record and retain a electronically within the time period (3) In addition to the information list of the affected sources or equipment, prescribed. Examples of such events are required in § 63.998(c), the an estimate of the quantity of each acts of nature (e.g., hurricanes, manufacturer’s specifications or your regulated pollutant emitted over any earthquakes, or floods), acts of war or written procedures must include a emission limit and a description of the terrorism, or equipment failure or safety schedule for calibrations, preventative method used to estimate the emissions. hazard beyond the control of the maintenance procedures, a schedule for (3) Record actions taken to minimize affected facility (e.g., large scale power preventative maintenance, and emissions in accordance with outage). corrective actions to be taken if a § 63.2350(d) and any corrective actions (2) You must submit notification to calibration fails. taken to return the affected unit to its the Administrator in writing as soon as (c) For each transport vehicle into normal or usual manner of operation. possible following the date you first which organic liquids are loaded at a (g) Beginning no later than the knew, or through due diligence should transfer rack that is subject to control compliance dates specified in have known, that the event may cause based on the criteria specified in Table § 63.2342(e), for each flow event from a or has caused a delay in reporting. 2 to this subpart, items 7 through 10, bypass line subject to the requirements (3) You must provide to the you must keep the applicable records in in § 63.2378(e)(1) and (2), you must Administrator: paragraphs (c)(1) and (2) of this section maintain records sufficient to determine (i) A written description of the force or alternatively the verification records whether or not the detected flow majeure event; in paragraph (c)(3) of this section. included flow requiring control. For (ii) A rationale for attributing the * * * * * each flow event from a bypass line delay in reporting beyond the regulatory (2) For transport vehicles without requiring control that is released either deadline to the force majeure event; vapor collection equipment, current directly to the atmosphere or to a (iii) Measures taken or to be taken to certification in accordance with the U.S. control device not meeting the minimize the delay in reporting; and DOT qualification and maintenance requirements specified in § 63.2378(a), (iv) The date by which you propose to requirements in 49 CFR part 180, you must include an estimate of the report, or if you have already met the subpart E for cargo tanks and subpart F volume of gas, the concentration of reporting requirement at the time of the for tank cars. organic HAP in the gas and the resulting notification, the date you reported. (3) In lieu of keeping the records emissions of organic HAP that bypassed (4) The decision to accept the claim specified in paragraph (c)(1) or (2) of the control device using process of force majeure and allow an extension this section, as applicable, the owner or knowledge and engineering estimates. to the reporting deadline is solely operator shall record that the (h) Beginning no later than the within the discretion of the verification of U.S. DOT tank compliance dates specified in Administrator. certification or Method 27 of 40 CFR § 63.2342(e), for each flare subject to the

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requirements in § 63.2380, you must subsequent calculations for a minimum § 63.2342(e), the applicability criteria keep records specified in paragraphs of 5 years. If pressure and temperature for control specified in Table 2 to this (h)(1) through (10) of this section in lieu monitoring is used, then retain records subpart for storage tanks at an existing of the information required in of the 15-minute block average affected source no longer apply as § 63.998(a)(1). temperature, pressure, and molecular specified in § 63.2346(a)(5). Instead, (1) Retain records of the output of the weight of the flare vent gas or assist gas beginning no later than the compliance monitoring device used to detect the stream for each measurement location dates specified in § 63.2342(e), as an presence of a pilot flame or flare flame used to determine the 15-minute block alternative to paragraphs (a)(1) and (2) as required in § 63.670(b) for a average cumulative flows for a of this section, if a storage tank assigned minimum of 2 years. Retain records of minimum of 2 years, and retain the 15- to an existing OLD affected source is each 15-minute block during which minute block average cumulative flows subject to control under 40 CFR part 60, there was at least one minute that no that are used in subsequent calculations subpart Kb, or 40 CFR part 61, subpart pilot flame or flare flame is present for a minimum of 5 years. Y, you may elect to comply only with when regulated material is routed to a (4) The flare vent gas compositions the requirements of this subpart for flare for a minimum of 5 years. You may specified to be monitored under storage tanks at an existing affected reduce the collected minute-by-minute § 63.670(j). Retain records of individual source meeting the applicability criteria data to a 15-minute block basis with an component concentrations from each for control in Table 2b to this subpart. indication of whether there was at least compositional analysis for a minimum * * * * * of 2 years. If an NHVvg analyzer is used, one minute where no pilot flame or flare (c) * * * flame was present. retain records of the 15-minute block (1) After the compliance dates (2) Retain records of daily visible average values for a minimum of 5 specified in § 63.2342, if you have emissions observations or video years. surveillance images required in (5) Each 15-minute block average pumps, valves, or sampling connections § 63.670(h) as specified in paragraphs operating parameter calculated that are subject to a 40 CFR part 60 (h)(2)(i) through (iv) of this section, as following the methods specified in subpart, and those pumps, valves, and applicable, for a minimum of 3 years. § 63.670(k) through (n), as applicable. sampling connections are in OLD (i) To determine when visible (6) All periods during which operation and in organic liquids service, emissions observations are required, the operating values are outside of the as defined in this subpart, you must record must identify all periods when applicable operating limits specified in comply with the provisions of each regulated material is vented to the flare. § 63.670(d) through (f) when regulated subpart for those equipment leak (ii) If visible emissions observations material is being routed to the flare. components. are performed using Method 22 of 40 (7) All periods during which you do (2) After the compliance dates CFR part 60, appendix A–7, then the not perform flare monitoring according specified in § 63.2342, if you have record must identify whether the visible to the procedures in § 63.670(g). pumps, valves, or sampling connections emissions observation was performed, (8) Records of periods when there is subject to subpart GGG of this part, and the results of each observation, total flow of vent gas to the flare, but when those pumps, valves, and sampling duration of observed visible emissions, there is no flow of regulated material to connections are in OLD operation and and whether it was a 5-minute or 2-hour the flare, including the start and stop in organic liquids service, as defined in observation. Record the date and start time and dates of periods of no this subpart, you may elect to comply and end time of each visible emissions regulated material flow. with the provisions of this subpart for observation. (9) The monitoring plan required in all such equipment leak components. (iii) If a video surveillance camera is § 63.671(b). You must identify in the Notification of used, then the record must include all (10) Records described in Compliance Status required by video surveillance images recorded, § 63.10(b)(2)(vi). § 63.2382(b) the provisions with which with time and date stamps. ■ 19. Section 63.2396 is amended by: you will comply. (iv) For each 2-hour period for which ■ a. Revising paragraph (a)(3); (d) Overlap of subpart EEEE with visible emissions are observed for more ■ b. Adding paragraph (a)(4); other regulations for flares for the OLD than 5 minutes in 2 consecutive hours, ■ c. Revising paragraph (c)(1) and (2); source category. (1) Beginning no later then the record must include the date ■ d. Adding paragraph (d); and than the compliance dates specified in ■ and start and end time of the 2-hour e. Revising paragraph (e)(2). § 63.2342(e), flares that are subject to period and an estimate of the The revisions and additions read as § 60.18 of this chapter or § 63.11 and cumulative number of minutes in the 2- follows: used as a control device for an emission hour period for which emissions were § 63.2396 What compliance options do I point subject to the requirements in visible. have if part of my plant is subject to both Tables 2 or 2b to of this subpart are (3) The 15-minute block average this subpart and another subpart? required to comply only with § 63.2380. cumulative flows for flare vent gas and, (a) * * * At any time before the compliance dates if applicable, total steam, perimeter (3) Except as specified in paragraph specified in § 63.2342(e), flares that are assist air, and premix assist air specified (a)(4) of this section, as an alternative to subject to § 60.18 or § 63.11 and elect to to be monitored under § 63.670(i), along paragraphs (a)(1) and (2) of this section, comply with § 63.2380 are required to with the date and time interval for the if a storage tank assigned to the OLD comply only with § 63.2380. 15-minute block. If multiple monitoring affected source is subject to control (2) Beginning no later than the locations are used to determine under 40 CFR part 60, subpart Kb, or 40 compliance dates specified in cumulative vent gas flow, total steam, CFR part 61, subpart Y, you may elect § 63.2342(e), flares that are subject to perimeter assist air, and premix assist to comply only with the requirements of § 63.987 and used as a control device for air, then retain records of the 15-minute this subpart for storage tanks meeting an emission point subject to the block average flows for each monitoring the applicability criteria for control in requirements in Tables 2 or 2b to this location for a minimum of 2 years, and Table 2 to this subpart. subpart are required to comply only retain the 15-minute block average (4) Beginning no later than the with § 63.2380. At any time before the cumulative flows that are used in compliance dates specified in compliance dates specified in

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§ 63.2342(e), flares that are subject to ■ a. Revising the definition of ‘‘Annual (2) Fails to meet any term or condition §§ 63.987 and elect to comply with average true vapor pressure’’; that is adopted to implement an § 63.2380 are required to comply only ■ b. Adding in alphabetical order a applicable requirement in this subpart, with § 63.2380. definition for ‘‘Condensate’’; and that is included in the operating (3) Beginning no later than the ■ c. Revising the definitions of permit for any affected source required compliance dates specified in ‘‘Deviation’’ and ‘‘Equipment leak to obtain such a permit; or § 63.2342(e), flares that are subject to the component’’; (3) Before July 7, 2023, fails to meet requirements of subpart CC of this part ■ d. Adding in alphabetical order a any emission limitation (including any and used as a control device for an definition for ‘‘Force majeure event’’; operating limit) or work practice emission point subject to the ■ e. Revising the definition of ‘‘Organic standard in this subpart during SSM. On requirements in Tables 2 or 2b to this liquid’’; and after July 7, 2023, this paragraph no subpart are required to comply only ■ f. Adding definitions in alphabetical longer applies. with the flare requirements in subpart order for ‘‘Pressure relief device’’ and * * * * * CC of this part. ‘‘Relief valve’’; and Equipment leak component means (e) * * * ■ g. Revising the definition of ‘‘Vapor- each pump, valve, and sampling (2) Equipment leak components. After tight transport vehicle’’. connection system used in organic the compliance dates specified in The revisions and additions read as liquids service at an OLD operation. § 63.2342, if you are applying the follows: Valve types include control, globe, gate, applicable recordkeeping and reporting plug, and ball. Relief and check valves requirements of another subpart of this § 63.2406 What definitions apply to this are excluded. part to the valves, pumps, and sampling subpart? Force majeure event means a release connection systems associated with a * * * * * of HAP, either directly to the transfer rack subject to this subpart that Annual average true vapor pressure atmosphere from a safety device or only unloads organic liquids directly to means the equilibrium partial pressure discharged via a flare, that is or via pipeline to a non-tank process exerted by the total organic HAP in demonstrated to the satisfaction of the unit component or to a storage tank Table 1 to this subpart in the stored or Administrator to result from an event subject to the other subpart of this part, transferred organic liquid. For the beyond the owner or operator’s control, the owner or operator must be in purpose of determining if a liquid meets such as natural disasters; acts of war or compliance with the recordkeeping and the definition of an organic liquid, the terrorism; loss of a utility external to the reporting requirements of this subpart vapor pressure is determined using OLD operation (e.g., external power EEEE. If complying with the conditions of 77 degrees Fahrenheit and curtailment), excluding power recordkeeping and reporting 29.92 inches of mercury. For the curtailment due to an interruptible requirements of the other subpart purpose of determining whether an service agreement; and fire or explosion satisfies the recordkeeping and organic liquid meets the applicability originating at a near or adjoining facility reporting requirements of this subpart, criteria in Table 2 to this subpart, items outside of the OLD operation that the owner or operator may elect to 1 through 6, or Table 2b to this subpart, impacts the OLD operation’s ability to continue to comply with the items 1 through 3, use the actual annual operate. recordkeeping and reporting average temperature as defined in this * * * * * requirements of the other subpart. In subpart. The vapor pressure value in Organic liquid means: such instances, the owner or operator either of these cases is determined: (1) Any non-crude oil liquid, non- will be deemed to be in compliance (1) Using standard reference texts; condensate liquid, or liquid mixture with the recordkeeping and reporting (2) By ASTM D6378–18a that contains 5 percent by weight or requirements of this subpart. The owner (incorporated by reference, see § 63.14) greater of the organic HAP listed in or operator must identify the other using a vapor to liquid ratio of 4:1; or Table 1 to this subpart, as determined subpart being complied with in the (3) Using any other method that the using the procedures specified in Notification of Compliance Status EPA approves. § 63.2354(c). required by § 63.2382(d). * * * * * (2) Any crude oils or condensates ■ 20. Section 63.2402 is amended by downstream of the first point of custody revising paragraph (b) introductory text Condensate means hydrocarbon liquid separated from natural gas that transfer. and adding paragraph (b)(5) to read as (3) Organic liquids for purposes of condenses due to changes in the follows: this subpart do not include the temperature or pressure, or both, and following liquids: § 63.2402 Who implements and enforces remains liquid at standard conditions as (i) Gasoline (including aviation this subpart? specified in § 63.2. Only those gasoline), kerosene (No. 1 distillate oil), * * * * * condensates downstream of the first diesel (No. 2 distillate oil), asphalt, and (b) In delegating implementation and point of custody transfer after the heavier distillate oils and fuel oils; enforcement authority for this subpart to production field are considered (ii) Any fuel consumed or dispensed a State, local, or eligible tribal agency condensates in this subpart. on the plant site directly to users (such under subpart E of this part, the * * * * * as fuels for fleet refueling or for authorities contained in paragraphs Deviation means any instance in refueling marine vessels that support (b)(1) through (5) of this section are which an affected source subject to this the operation of the plant); retained by the EPA Administrator and subpart, or portion thereof, or an owner (iii) Hazardous waste; are not delegated to the State, local, or or operator of such a source: (iv) Wastewater; eligible tribal agency. (1) Fails to meet any requirement or (v) Ballast water; or * * * * * obligation established by this subpart (vi) Any non-crude oil or non- (5) Approval of an alternative to any including, but not limited to, any condensate liquid with an annual electronic reporting to the EPA required emission limitation (including any average true vapor pressure less than 0.7 by this subpart. operating limit) or work practice kilopascals (0.1 psia). ■ 21. Section 63.2406 is amended by: standard; * * * * *

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Pressure relief device means a valve, disks, and breaking, buckling, or inches of water). This capability must be rupture disk, or similar device used shearing pin devices. demonstrated annually using the only to release an unplanned, Relief valve means a type of pressure procedures specified in Method 27 of 40 nonroutine discharge of gas from relief device that is designed to re-close CFR part 60, appendix A–8. For all process equipment in order to avoid after the pressure relief. other transport vehicles, vapor tightness safety hazards or equipment damage. A * * * * * is demonstrated by performing the U.S. pressure relief device discharge can Vapor-tight transport vehicle means a DOT pressure test procedures for tank result from an operator error, a transport vehicle that has been cars and cargo tanks. demonstrated to be vapor-tight. To be malfunction such as a power failure or * * * * * equipment failure, or other unexpected considered vapor-tight, a transport ■ cause. Such devices include vehicle equipped with vapor collection 22. Table 2 to subpart EEEE of Part 63 equipment must undergo a pressure conventional, spring-actuated relief is revised to read as follows: change of no more than 250 pascals (1 valves, balanced bellows relief valves, inch of water) within 5 minutes after it Table 2 to Subpart EEEE of Part 63— pilot-operated relief valves, rupture is pressurized to 4,500 pascals (18 Emission Limits

If you own or operate . . . And if . . . Then you must . . .1

1. A storage tank at an existing affected source a. The stored organic liquid is not crude oil or i. Reduce emissions of total organic HAP (or, with a capacity ≥18.9 cubic meters (5,000 condensate and if the annual average true upon approval, TOC) by at least 95 weight- gallons) and <189.3 cubic meters (50,000 vapor pressure of the total Table 1 organic percent or, as an option, to an exhaust con- gallons) 2. HAP in the stored organic liquid is ≥27.6 centration less than or equal to 20 ppmv, kilopascals (4.0 psia) and <76.6 kilopascals on a dry basis corrected to 3-percent oxy- (11.1 psia). gen for combustion devices using supple- mental combustion air, by venting emis- sions through a closed vent system to any combination of control devices meeting the applicable requirements of subpart SS of this part and § 63.2346(l); OR ii. Comply with the work practice standards specified in Table 4 to this subpart, items 1.a, 1.b, or 1.c for tanks storing liquids de- scribed in that table. b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or 1.a.ii of condensate. this table. 2. A storage tank at an existing affected source a. The stored organic liquid is not crude oil or i. See the requirement in item 1.a.i or 1.a.ii of with a capacity ≥189.3 cubic meters (50,000 condensate and if the annual average true this table. gallons). vapor pressure of the total Table 1 organic HAP in the stored organic liquid is <76.6 kilopascals (11.1 psia). b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or 1.a.ii of condensate. this table. 3. A storage tank at a reconstructed or new af- a. The stored organic liquid is not crude oil or i. See the requirement in item 1.a.i or 1.a.ii of fected source with a capacity ≥18.9 cubic condensate and if the annual average true this table. meters (5,000 gallons) and <37.9 cubic me- vapor pressure of the total Table 1 organic ters (10,000 gallons). HAP in the stored organic liquid is ≥27.6 kilopascals (4.0 psia) and <76.6 kilopascals (11.1 psia). b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or 1.a.ii of condensate. this table. 4. A storage tank at a reconstructed or new af- a. The stored organic liquid is not crude oil or i. See the requirement in item 1.a.i or 1.a.ii of fected source with a capacity ≥37.9 cubic condensate and if the annual average true this table. meters (10,000 gallons) and <189.3 cubic vapor pressure of the total Table 1 organic meters (50,000 gallons). HAP in the stored organic liquid is ≥0.7 kilopascals (0.1 psia) and <76.6 kilopascals (11.1 psia). b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or 1.a.ii of condensate. this table. 5. A storage tank at a reconstructed or new af- a. The stored organic liquid is not crude oil or i. See the requirement in item 1.a.i or 1.a.ii of fected source with a capacity ≥189.3 cubic condensate and if the annual average true this table. meters (50,000 gallons). vapor pressure of the total Table 1 organic HAP in the stored organic liquid is <76.6 kilopascals (11.1 psia). b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or 1.a.ii of condensate. this table.

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If you own or operate . . . And if . . . Then you must . . .1

6. A storage tank at an existing, reconstructed, a. The stored organic liquid is not crude oil or i. Reduce emissions of total organic HAP (or, or new affected source meeting the capacity condensate and if the annual average true upon approval, TOC) by at least 95 weight- criteria specified in Table 2 to this subpart, vapor pressure of the total Table 1 organic percent or, as an option, to an exhaust con- items 1 through 5. HAP in the stored organic liquid is ≥76.6 centration less than or equal to 20 ppmv, kilopascals (11.1 psia). on a dry basis corrected to 3-percent oxy- gen for combustion devices using supple- mental combustion air, by venting emis- sions through a closed vent system to any combination of control devices meeting the applicable requirements of subpart SS of this part and § 63.2346(l); OR ii. Comply with the work practice standards specified in Table 4 to this subpart, item 2.a or 2.b, for tanks storing the liquids de- scribed in that table. 7. A transfer rack at an existing facility where a. The total Table 1 organic HAP content of i. For all such loading arms at the rack, re- the total actual annual facility-level organic the organic liquid being loaded through one duce emissions of total organic HAP (or, liquid loading volume through transfer racks or more of the transfer rack’s arms is at upon approval, TOC) from the loading of or- is equal to or greater than 800,000 gallons least 98 percent by weight and is being ganic liquids either by venting the emis- and less than 10 million gallons. loaded into a transport vehicle. sions that occur during loading through a closed vent system to any combination of control devices meeting the applicable re- quirements of subpart SS of this part and § 63.2346(l), achieving at least 98 weight- percent HAP reduction, OR, as an option, to an exhaust concentration less than or equal to 20 ppmv, on a dry basis corrected to 3-percent oxygen for combustion devices using supplemental combustion air; OR ii. During the loading of organic liquids, com- ply with the work practice standards speci- fied in item 3 of Table 4 to this subpart. 8. A transfer rack at an existing facility where a. One or more of the transfer rack’s arms is i. See the requirements in items 7.a.i and the total actual annual facility-level organic loading an organic liquid into a transport ve- 7.a.ii of this table. liquid loading volume through transfer racks hicle. is ≥10 million gallons. 9. A transfer rack at a new facility where the a. The total Table 1 organic HAP content of i. See the requirements in items 7.a.i and total actual annual facility-level organic liquid the organic liquid being loaded through one 7.a.ii of this table. loading volume through transfer racks is less or more of the transfer rack’s arms is at than 800,000 gallons. least 25 percent by weight and is being loaded into a transport vehicle. b. One or more of the transfer rack’s arms is i. For all such loading arms at the rack during filling a container with a capacity equal to or the loading of organic liquids, comply with greater than 55 gallons. the provisions of §§ 63.924 through 63.927; OR ii. During the loading of organic liquids, com- ply with the work practice standards speci- fied in item 3.a of Table 4 to this subpart. 10. A transfer rack at a new facility where the a. One or more of the transfer rack’s arms is i. See the requirements in items 7.a.i and total actual annual facility-level organic liquid loading an organic liquid into a transport ve- 7.a.ii of this table. loading volume through transfer racks is hicle. equal to or greater than 800,000 gallons. b. One or more of the transfer rack’s arms is i. For all such loading arms at the rack during filling a container with a capacity equal to or the loading of organic liquids, comply with greater than 55 gallons. the provisions of §§ 63.924 through 63.927; OR ii. During the loading of organic liquids, com- ply with the work practice standards speci- fied in item 3.a of Table 4 to this subpart. 1 Beginning no later than the compliance dates specified in § 63.2342(e), for each storage tank and low throughput transfer rack, if you vent emissions through a closed vent system to a flare then you must comply with the requirements specified in § 63.2346(k). 2 Beginning no later than the compliance dates specified in § 63.2342(e), the tank capacity criteria, liquid vapor pressure criteria, and emission limits specified for storage tanks at an existing affected source in Table 2 to this subpart, item 1 no longer apply. Instead, you must comply with the requirements as specified in § 63.2346(a)(5) and Table 2b to this subpart.

■ 23. Subpart EEEE of Part 63 is Table 2b to Subpart EEEE of Part 63— requirements in this Table 2b to this amended by adding Table 2b to read as Emission Limits For Storage Tanks At subpart apply to storage tanks at an follows: Certain Existing Affected Sources existing affected source in lieu of the As stated in § 63.2346(a)(5), beginning requirements in Table 2 to this subpart, no later than the compliance dates item 1 for storage tanks at an existing specified in § 63.2342(e), the affected source.

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If you own or operate . . . And if . . . Then you must . . .

1. A storage tank at an existing affected source a. The stored organic liquid is not crude oil or i. Reduce emissions of total organic HAP (or, with a capacity ≥18.9 cubic meters (5,000 condensate and if the annual average true upon approval, TOC) by at least 95 weight- gallons) and <75.7 cubic meters (20,000 gal- vapor pressure of the total Table 1 organic percent or, as an option, to an exhaust con- lons). HAP in the stored organic liquid is ≥27.6 centration less than or equal to 20 ppmv, kilopascals (4.0 psia). on a dry basis corrected to 3- percent oxy- gen for combustion devices using supple- mental combustion air, by venting emis- sions through a closed vent system to a flare meeting the requirements of §§ 63.983 and 63.2380, or by venting emissions through a closed vent system to any com- bination of nonflare control devices meeting the applicable requirements of subpart SS of this part and § 63.2346(l); OR. ii. Comply with the work practice standards specified in Table 4 to this subpart, items 1.a, 1.b, or 1.c for tanks storing liquids de- scribed in that table. b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or ii of this condensate. table. 2. A storage tank at an existing affected source a. The stored organic liquid is not crude oil or i. See the requirement in item 1.a.i or ii of this with a capacity ≥75.7 cubic meters (20,000 condensate and if the annual average true table. gallons) and <151.4 cubic meters (40,000 vapor pressure of the total Table 1 organic gallons). HAP in the stored organic liquid is ≥13.1 kilopascals (1.9 psia). b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or ii of this condensate. table. 3. A storage tank at an existing affected source a. The stored organic liquid is not crude oil or i. See the requirement in item 1.a.i or ii of this with a capacity ≥151.4 cubic meters (40,000 condensate and if the annual average true table. gallons) and <189.3 cubic meters (50,000 vapor pressure of the total Table 1 organic gallons). HAP in the stored organic liquid is ≥5.2 kilopascals (0.75 psia). b. The stored organic liquid is crude oil or i. See the requirement in item 1.a.i or ii of this condensate. table.

■ 24. Table 3 to subpart EEEE of Part 63 Table 3 to Subpart EEEE of Part 63— existing, reconstructed, or new affected is revised to read as follows: Operating Limits—High Throughput sources as follows: Transfer Racks As stated in § 63.2346(e), you must comply with the operating limits for

For each existing, each reconstructed, and each new affected source using . . . You must . . .

1. A thermal oxidizer to comply with an emission limit in Table 2 to this Maintain the daily average fire box or combustion zone temperature subpart. greater than or equal to the reference temperature established dur- ing the design evaluation or performance test that demonstrated compliance with the emission limit. 2. A catalytic oxidizer to comply with an emission limit in Table 2 to this a. Replace the existing catalyst bed before the age of the bed exceeds subpart. the maximum allowable age established during the design evaluation or performance test that demonstrated compliance with the emission limit; AND b. Maintain the daily average temperature at the inlet of the catalyst bed greater than or equal to the reference temperature established during the design evaluation or performance test that demonstrated compliance with the emission limit; AND c. Maintain the daily average temperature difference across the cata- lyst bed greater than or equal to the minimum temperature difference established during the design evaluation or performance test that demonstrated compliance with the emission limit. 3. An absorber to comply with an emission limit in Table 2 to this sub- a. Maintain the daily average concentration level of organic compounds part. in the absorber exhaust less than or equal to the reference con- centration established during the design evaluation or performance test that demonstrated compliance with the emission limit; OR b. Maintain the daily average scrubbing liquid temperature less than or equal to the reference temperature established during the design evaluation or performance test that demonstrated compliance with the emission limit; AND

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For each existing, each reconstructed, and each new affected source using . . . You must . . .

Maintain the difference between the specific gravities of the saturated and fresh scrubbing fluids greater than or equal to the difference es- tablished during the design evaluation or performance test that dem- onstrated compliance with the emission limit. 4. A condenser to comply with an emission limit in Table 2 to this sub- a. Maintain the daily average concentration level of organic compounds part. at the condenser exit less than or equal to the reference concentra- tion established during the design evaluation or performance test that demonstrated compliance with the emission limit; OR b. Maintain the daily average condenser exit temperature less than or equal to the reference temperature established during the design evaluation or performance test that demonstrated compliance with the emission limit. 5. An adsorption system with adsorbent regeneration to comply with an a. Maintain the daily average concentration level of organic compounds emission limit in Table 2 to this subpart. in the adsorber exhaust less than or equal to the reference con- centration established during the design evaluation or performance test that demonstrated compliance with the emission limit; OR b. Maintain the total regeneration stream mass flow during the adsorp- tion bed regeneration cycle greater than or equal to the reference stream mass flow established during the design evaluation or per- formance test that demonstrated compliance with the emission limit; AND Before the adsorption cycle commences, achieve and maintain the temperature of the adsorption bed after regeneration less than or equal to the reference temperature established during the design evaluation or performance test that demonstrated compliance with the emission limit; AND Achieve a pressure reduction during each adsorption bed regeneration cycle greater than or equal to the pressure reduction established during the design evaluation or performance test that demonstrated compliance with the emission limit. 6. An adsorption system without adsorbent regeneration to comply with a. Maintain the daily average concentration level of organic compounds an emission limit in Table 2 to this subpart. in the adsorber exhaust less than or equal to the reference con- centration established during the design evaluation or performance test that demonstrated compliance with the emission limit; OR b. Replace the existing adsorbent in each segment of the bed with an adsorbent that meets the replacement specifications established dur- ing the design evaluation or performance test before the age of the adsorbent exceeds the maximum allowable age established during the design evaluation or performance test that demonstrated compli- ance with the emission limit; AND Maintain the temperature of the adsorption bed less than or equal to the reference temperature established during the design evaluation or performance test that demonstrated compliance with the emission limit. 7. A flare to comply with an emission limit in Table 2 to this subpart ..... a. Except as specified in item 7.d of this table, comply with the equip- ment and operating requirements in § 63.987(a); AND b. Except as specified in item 7.d of this table, conduct an initial flare compliance assessment in accordance with § 63.987(b); AND c. Except as specified in item 7.d of this table, install and operate mon- itoring equipment as specified in § 63.987(c). d. Beginning no later than the compliance dates specified in § 63.2342(e), comply with the requirements in § 63.2380 instead of the requirements in § 63.987 and the provisions regarding flare com- pliance assessments at § 63.997(a), (b), and (c). 8. Another type of control device to comply with an emission limit in Submit a monitoring plan as specified in §§ 63.995(c) and 63.2366(b), Table 2 to this subpart. and monitor the control device in accordance with that plan.

■ 25. Table 4 to subpart EEEE of Part 63 Table 4 to Subpart EEEE of Part 63— standards for existing, reconstructed, or is revised to read as follows: Work Practice Standards new affected sources in the following As stated in § 63.2346, you may elect table. If you elect to do so, . . . to comply with one of the work practice

For each . . . You must . . .

1. Storage tank at an existing, reconstructed, or new affected source a. Comply with the requirements of 40 CFR part 63, subpart WW (con- meeting any set of tank capacity and organic HAP vapor pressure trol level 2), if you elect to meet 40 CFR part 63, subpart WW (con- criteria specified in Table 2 to this subpart, items 1 through 5 or trol level 2) requirements as an alternative to the emission limit in Table 2b to this subpart, items 1 through 3. Table 2 to this subpart, items 1 through 5 or the emission limit in Table 2b to this subpart, items 1 through 3; OR.

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For each . . . You must . . .

b. Comply with the requirements in §§ 63.2346(l) and 63.984 for routing emissions to a fuel gas system or back to a process; OR. c. Comply with the requirements of § 63.2346(a)(4) for vapor balancing emissions to the transport vehicle from which the storage tank is filled. 2. Storage tank at an existing, reconstructed, or new affected source a. Comply with the requirements in §§ 63.2346(l) and 63.984 for routing meeting any set of tank capacity and organic HAP vapor pressure emissions to a fuel gas system or back to a process; OR criteria specified in Table 2 to this subpart, item 6. b. Comply with the requirements of § 63.2346(a)(4) for vapor balancing emissions to the transport vehicle from which the storage tank is filled. 3. Transfer rack subject to control based on the criteria specified in a. If the option of a vapor balancing system is selected, install and, Table 2 to this subpart, items 7 through 10, at an existing, recon- during the loading of organic liquids, operate a system that meets structed, or new affected source. the requirements in Table 7 to this subpart, item 3.b.i and item 3.b.ii, as applicable; OR b. Comply with the requirements in §§ 63.2346(l) and 63.984 during the loading of organic liquids, for routing emissions to a fuel gas system or back to a process. 4. Pump, valve, and sampling connection that operates in organic liq- Comply with § 63.2346(l) and the requirements for pumps, valves, and uids service at least 300 hours per year at an existing, reconstructed, sampling connections in 40 CFR part 63, subpart TT (control level or new affected source. 1), subpart UU (control level 2), or subpart H. 5. Transport vehicles equipped with vapor collection equipment that are Follow the steps in 40 CFR 60.502(e) to ensure that organic liquids are loaded at transfer racks that are subject to control based on the cri- loaded only into vapor-tight transport vehicles, and comply with the teria specified in Table 2 to this subpart, items 7 through 10. provisions in 40 CFR 60.502(f), (g), (h), and (i), except substitute the term transport vehicle at each occurrence of tank truck or gasoline tank truck in those paragraphs. 6. Transport vehicles equipped without vapor collection equipment that Ensure that organic liquids are loaded only into transport vehicles that are loaded at transfer racks that are subject to control based on the have a current certification in accordance with the U.S. DOT quali- criteria specified in Table 2 to this subpart, items 7 through 10. fication and maintenance requirements in 49 CFR part 180, subpart E for cargo tanks and subpart F for tank cars.

■ 26. Table 5 to subpart EEEE of Part 63 Table 5 to Subpart EEEE of Part 63— requirements for performance tests and is revised to read as follows: Requirements for Performance Tests design evaluations for existing, and Design Evaluations reconstructed, or new affected sources As stated in §§ 63.2354(a) and as follows: 63.2362, you must comply with the

According to the For . . . You must conduct . . . According to . . . Using . . . To determine . . . following requirements . . .

1. Each existing, each re- a. A performance test to i. § 63.985(b)(1)(ii), (1) Method 1 or 1A in (A) Sampling port loca- (i) Sampling sites must constructed, and each determine the organic § 63.988(b), § 63.990(b), or appendix A–1 of 40 tions and the required be located at the inlet new affected source HAP (or, upon a § 63.995(b). CFR part 60, as ap- number of traverse and outlet of each using a nonflare control pproval, TOC) control propriate. points. control device if com- device to comply with efficiency of each plying with the control an emission limit in nonflare control de- efficiency requirement Table 2 to this subpart, vice, OR the exhaust or at the outlet of the items 1 through 10, and concentration of each control device if com- each existing affected combustion device; plying with the ex- source using a nonflare OR haust concentration control device to com- requirement; AND ply with an emission (ii) the outlet sampling limit in Table 2b to this site must be located subpart, items 1 at each control device through 3. prior to any releases to the atmosphere. (2) Method 2, 2A, 2C, (A) Stack gas velocity See the requirements in 2D, or 2F in appendix and volumetric flow items 1.a.i.(1)(A)(i) A–1 of 40 CFR part rate. and (ii) of this table. 60, or Method 2G in appendix A–2 of 40 CFR part 60, as ap- propriate. (3) Method 3A or 3B in (A) Concentration of See the requirements in appendix A–2 of 40 CO2 and O2 and dry items 1.a.i.(1)(A)(i) CFR part 60, as ap- molecular weight of and (ii) of this table. propriate 1. the stack gas. (4) Method 4 in appen- (A) Moisture content of See the requirements in dix A–3 of 40 CFR the stack gas. items 1.a.i.(1)(A)(i) part 60. and (ii) of this table.

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According to the For . . . You must conduct . . . According to . . . Using . . . To determine . . . following requirements . . .

(5) Method 25 or 25A in (A) TOC and formalde- (i) The organic HAP appendix A–7 of 40 hyde emissions, from used for the calibra- CFR part 60, as ap- any control device. tion gas for Method propriate. Method 25A in appendix A–7 316, Method 320 4, or of 40 CFR part 60 Method 323 in appen- must be the single or- dix A of this part if ganic HAP rep- you must measure resenting the largest formaldehyde. You percent by volume of may not use Methods emissions; AND 320 24 or 323 for (ii) During the perform- formaldehyde if the ance test, you must gas stream contains establish the oper- entrained water drop- ating parameter limits lets. within which TOC emissions are re- duced by the required weight-percent or, as an option for nonflare combustion devices, to 20-ppmv exhaust concentration. (6) Method 18 3 in ap- (A) Total organic HAP (i) During the perform- pendix A–6 of 40 CFR and formaldehyde ance test, you must part 60 or Method emissions, from non- establish the oper- 320 24 of appendix A combustion control ating parameter limits to this part, as appro- devices. within which total or- priate. Method 316, ganic HAP emissions Method 320 24, or are reduced by the re- Method 323 in appen- quired weight-percent. dix A of this part for measuring formalde- hyde. You may not use Methods 320 or 323 if the gas stream contains entrained water droplets. b. A design evaluation § 63.985(b)(1)(i) ...... During a design evalua- (for nonflare control tion, you must estab- devices) to determine lish the operating pa- the organic HAP (or, rameter limits within upon approval, TOC) which total organic control efficiency of HAP, (or, upon ap- each nonflare control proval, TOC) emis- device, or the exhaust sions are reduced by concentration of each at least 95 weight-per- combustion control cent for storage tanks device. or 98 weight-percent for transfer racks, or, as an option for nonflare combustion devices, to 20-ppmv exhaust concentra- tion. 2. Each transport vehicle A performance test to Method 27 of appendix Vapor tightness ...... The pressure change in that you own that is determine the vapor A of 40 CFR part 60. the tank must be no equipped with vapor tightness of the tank more than 250 collection equipment and then repair as pascals (1 inch of and is loaded with or- needed until it passes water) in 5 minutes ganic liquids at a trans- the test. after it is pressurized fer rack that is subject to 4,500 pascals (18 to control based on the inches of water). criteria specified in Table 2 to this subpart, items 7 through 10, at an existing, recon- structed, or new af- fected source. 1 The manual method in American Society of Mechanical Engineers (ASME) PTC 19.10–1981-Part 10 (2010) (incorporated by reference, see § 63.14) may be used instead of Method 3B in appendix A–2 of 40 CFR part 60 to determine oxygen concentration. 2 All compounds quantified by Method 320 of appendix A to this part must be validated according to Section 13.0 of Method 320. 3 ASTM D6420–18 (incorporated by reference, see § 63.14) may be used instead of Method 18 of 40 CFR part 60, appendix A–6 to determine total HAP emis- sions, but if you use ASTM D6420–18, you must use it under the conditions specified in § 63.2354(b)(3)(ii). 4 ASTM D6348–12e1 (incorporated by reference, see § 63.14) may be used instead of Method 320 of appendix A to this part under the following conditions: the test plan preparation and implementation in the Annexes to ASTM D6348–12e1, Sections A1 through A8 are mandatory; the percent (%) R must be determined for each target analyte (Equation A5.5); %R must be 70% ≥ R ≤ 130%; if the %R value does not meet this criterion for a target compound, then the test data is not ac- ceptable for that compound and the test must be repeated for that analyte (i.e., the sampling and/or analytical procedure should be adjusted before a retest); and the %R value for each compound must be reported in the test report and all field measurements must be corrected with the calculated %R value for that compound by using the following equation: Reported Results = ((Measured Concentration in Stack))/(%R) × 100.

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■ 27. Table 6 to subpart EEEE of Part 63 Table 6 to Subpart EEEE of Part 63— compliance with the emission limits for is amended by revising the rows for Initial Compliance With Emission existing, reconstructed, or new affected items 1 and 2 to read as follows: Limits sources as follows: As stated in §§ 63.2370(a) and 63.2382(b), you must show initial

You have demonstrated initial compliance For each . . . For the following emission limit . . . if . . .

1. Storage tank at an existing, reconstructed, or Reduce total organic HAP (or, upon approval, Total organic HAP (or, upon approval, TOC) new affected source meeting any set of tank TOC) emissions by at least 95 weight-per- emissions, based on the results of the per- capacity and liquid organic HAP vapor pres- cent, or as an option for nonflare combus- formance testing or design evaluation spec- sure criteria specified in Table 2 to this sub- tion devices to an exhaust concentration of ified in Table 5 to this subpart, item 1.a or part, items 1 through 6, or Table 2b to this ≤20 ppmv. 1.b, respectively, are reduced by at least 95 subpart, items 1 through 3. weight-percent or as an option for nonflare combustion devices to an exhaust con- centration ≤20 ppmv. 2. Transfer rack that is subject to control based Reduce total organic HAP (or, upon approval, Total organic HAP (or, upon approval, TOC) on the criteria specified in Table 2 to this TOC) emissions from the loading of organic emissions from the loading of organic liq- subpart, items 7 through 10, at an existing, liquids by at least 98 weight-percent, or as uids, based on the results of the perform- reconstructed, or new affected source. an option for nonflare combustion devices ance testing or design evaluation specified to an exhaust concentration of ≤20 ppmv. in Table 5 to this subpart, item 1.a or 1.b, respectively, are reduced by at least 98 weight-percent or as an option for nonflare combustion devices to an exhaust con- centration of ≤20 ppmv.

■ 28. Table 7 to subpart EEEE of Part 63 is amended by revising the rows for items 1, 3, and 4 to read as follows:

TABLE 7 TO SUBPART EEEE OF PART 63—INITIAL COMPLIANCE WITH WORK PRACTICE STANDARDS

You have demonstrated initial compliance For each . . . If you . . . if . . .

1. Storage tank at an existing affected source a. Install a floating roof or equivalent control i. After emptying and degassing, you visually meeting either set of tank capacity and liquid that meets the requirements in Table 4 to inspect each internal floating roof before the organic HAP vapor pressure criteria specified this subpart, item 1.a. refilling of the storage tank and perform in Table 2 to this subpart, items 1 or 2, or seal gap inspections of the primary and Table 2b to this subpart, items 1 through 3. secondary rim seals of each external float- ing roof within 90 days after the refilling of the storage tank. b. Route emissions to a fuel gas system or i. You meet the requirements in § 63.984(b) back to a process. and submit the statement of connection re- quired by § 63.984(c). c. Install and, during the filling of the storage i. You meet the requirements in tank with organic liquids, operate a vapor § 63.2346(a)(4). balancing system. 2. Storage tank at a reconstructed or new af- a. Install a floating roof or equivalent control i. You visually inspect each internal floating fected source meeting any set of tank capac- that meets the requirements in Table 4 to roof before the initial filling of the storage ity and liquid organic HAP vapor pressure cri- this subpart, item 1.a. tank and perform seal gap inspections of teria specified in Table 2 to this subpart, the primary and secondary rim seals of items 3 through 5. each external floating roof within 90 days after the initial filling of the storage tank. b. Route emissions to a fuel gas system or i. See item 1.b.i of this table. back to a process. c. Install and, during the filling of the storage i. See item 1.c.i of this table. tank with organic liquids, operate a vapor balancing system. 3. Transfer rack that is subject to control based a. Load organic liquids only into transport ve- i. You comply with the provisions specified in on the criteria specified in Table 2 to this hicles having current vapor tightness certifi- Table 4 to this subpart, item 5 or item 6, as subpart, items 7 through 10, at an existing, cation as described in Table 4 to this sub- applicable. reconstructed, or new affected source. part, item 5 and item 6.

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TABLE 7 TO SUBPART EEEE OF PART 63—INITIAL COMPLIANCE WITH WORK PRACTICE STANDARDS—Continued

You have demonstrated initial compliance For each . . . If you . . . if . . .

b. Install and, during the loading of organic i. You design and operate the vapor balancing liquids, operate a vapor balancing system. system to route organic HAP vapors dis- placed from loading of organic liquids into transport vehicles to the storage tank from which the liquid being loaded originated or to another storage tank connected to a common header. ii. You design and operate the vapor bal- ancing system to route organic HAP vapors displaced from loading of organic liquids into containers directly (e.g., no intervening tank or containment area such as a room) to the storage tank from which the liquid being loaded originated or to another stor- age tank connected to a common header. c. Route emissions to a fuel gas system or i. See item 1.b.i of this table. back to a process. 4. Equipment leak component, as defined in a. Carry out a leak detection and repair pro- i. You specify which one of the control pro- § 63.2406, that operates in organic liquids gram or equivalent control according to one grams listed in Table 4 to this subpart you service ≥300 hours per year at an existing, of the subparts listed in Table 4 to this sub- have selected, OR reconstructed, or new affected source. part, item 4. ii. Provide written specifications for your equivalent control approach.

■ 29. Table 8 to subpart EEEE of Part 63 Table 8 to Subpart EEEE of Part 63— compliance with the emission limits for is revised to read as follows: Continuous Compliance With Emission existing, reconstructed, or new affected Limits sources according to the following table: As stated in §§ 63.2378(a) and (b) and 63.2390(b), you must show continuous

You must demonstrate continuous compliance For each . . . For the following emission limit . . . by . . .

1. Storage tank at an existing, reconstructed, a. Reduce total organic HAP (or, upon ap- i. Performing CMS monitoring and collecting or new affected source meeting any set of proval, TOC) emissions from the closed data according to §§ 63.2366, 63.2374, and tank capacity and liquid organic HAP vapor vent system and control device by 95 63.2378, except as specified in item 1.a.iii pressure criteria specified in Table 2 to this weight-percent or greater, or as an option to of this table; AND subpart, items 1 through 6 or Table 2b to 20 ppmv or less of total organic HAP (or, ii. Maintaining the operating limits established this subpart, items 1 through 3. upon approval, TOC) in the exhaust of com- during the design evaluation or performance bustion devices. test that demonstrated compliance with the emission limit. iii. Beginning no later than the compliance dates specified in § 63.2342(e), if you use a flare, you must demonstrate continuous compliance by performing CMS monitoring and collecting data according to require- ments in § 63.2380. 2. Transfer rack that is subject to control based a. Reduce total organic HAP (or, upon ap- i. Performing CMS monitoring and collecting on the criteria specified in Table 2 to this proval, TOC) emissions during the loading data according to §§ 63.2366, 63.2374, and subpart, items 7 through 10, at an existing, of organic liquids from the closed vent sys- 63.2378 during the loading of organic liq- reconstructed, or new affected source. tem and control device by 98 weight-per- uids, except as specified in item 2.a.iii of cent or greater, or as an option to 20 ppmv this table; AND or less of total organic HAP (or, upon ap- ii. Maintaining the operating limits established proval, TOC) in the exhaust of combustion during the design evaluation or performance devices. test that demonstrated compliance with the emission limit during the loading of organic liquids. iii. Beginning no later than the compliance dates specified in § 63.2342(e), if you use a flare, you must demonstrate continuous compliance by performing CMS monitoring and collecting data according to require- ments in § 63.2380.

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■ 30. Table 9 to subpart EEEE of Part 63 Table 9 to Subpart EEEE of Part 63— compliance with the operating limits for is revised to read as follows: Continuous Compliance With Operating existing, reconstructed, or new affected Limits—High Throughput Transfer sources according to the following table: Racks As stated in §§ 63.2378(a) and (b) and 63.2390(b), you must show continuous

For each existing, reconstructed, and each new You must demonstrate continuous compliance affected source using . . . For the following operating limit . . . by . . .

1. A thermal oxidizer to comply with an emis- a. Maintain the daily average fire box or com- i. Continuously monitoring and recording fire sion limit in Table 2 to this subpart. bustion zone, as applicable, temperature box or combustion zone, as applicable, greater than or equal to the reference tem- temperature every 15 minutes and main- perature established during the design eval- taining the daily average fire box tempera- uation or performance test that dem- ture greater than or equal to the reference onstrated compliance with the emission limit. temperature established during the design evaluation or performance test that dem- onstrated compliance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1 2. A catalytic oxidizer to comply with an emis- a. Replace the existing catalyst bed before i. Replacing the existing catalyst bed before sion limit in Table 2 to this subpart. the age of the bed exceeds the maximum the age of the bed exceeds the maximum allowable age established during the design allowable age established during the design evaluation or performance test that dem- evaluation or performance test that dem- onstrated compliance with the emission onstrated compliance with the emission limit; AND limit; AND ii. Keeping the applicable records required in § 63.998.1 b. Maintain the daily average temperature at i. Continuously monitoring and recording the the inlet of the catalyst bed greater than or temperature at the inlet of the catalyst bed equal to the reference temperature estab- at least every 15 minutes and maintaining lished during the design evaluation or per- the daily average temperature at the inlet of formance test that demonstrated compli- the catalyst bed greater than or equal to the ance with the emission limit; AND. reference temperature established during the design evaluation or performance test that demonstrated compliance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1 c. Maintain the daily average temperature dif- i. Continuously monitoring and recording the ference across the catalyst bed greater temperature at the outlet of the catalyst bed than or equal to the minimum temperature every 15 minutes and maintaining the daily difference established during the design average temperature difference across the evaluation or performance test that dem- catalyst bed greater than or equal to the onstrated compliance with the emission limit. minimum temperature difference estab- lished during the design evaluation or per- formance test that demonstrated compli- ance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1 3. An absorber to comply with an emission limit a. Maintain the daily average concentration i. Continuously monitoring the organic con- in Table 2 to this subpart. level of organic compounds in the absorber centration in the absorber exhaust and exhaust less than or equal to the reference maintaining the daily average concentration concentration established during the design less than or equal to the reference con- evaluation or performance test that dem- centration established during the design onstrated compliance with the emission evaluation or performance test that dem- limit; OR onstrated compliance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1

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For each existing, reconstructed, and each new You must demonstrate continuous compliance affected source using . . . For the following operating limit . . . by . . .

b. Maintain the daily average scrubbing liquid i. Continuously monitoring the scrubbing liquid temperature less than or equal to the ref- temperature and maintaining the daily aver- erence temperature established during the age temperature less than or equal to the design evaluation or performance test that reference temperature established during demonstrated compliance with the emission the design evaluation or performance test limit; AND that demonstrated compliance with the Maintain the difference between the specific emission limit; AND gravities of the saturated and fresh scrub- ii. Maintaining the difference between the spe- bing fluids greater than or equal to the dif- cific gravities greater than or equal to the ference established during the design eval- difference established during the design uation or performance test that dem- evaluation or performance test that dem- onstrated compliance with the emission limit. onstrated compliance with the emission limit; AND iii. Keeping the applicable records required in § 63.998.1 4. A condenser to comply with an emission limit a. Maintain the daily average concentration i. Continuously monitoring the organic con- in Table 2 to this subpart. level of organic compounds at the exit of centration at the condenser exit and main- the condenser less than or equal to the ref- taining the daily average concentration less erence concentration established during the than or equal to the reference concentration design evaluation or performance test that established during the design evaluation or demonstrated compliance with the emission performance test that demonstrated compli- limit; OR ance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1 b. Maintain the daily average condenser exit i. Continuously monitoring and recording the temperature less than or equal to the ref- temperature at the exit of the condenser at erence temperature established during the least every 15 minutes and maintaining the design evaluation or performance test that daily average temperature less than or demonstrated compliance with the emission equal to the reference temperature estab- limit. lished during the design evaluation or per- formance test that demonstrated compli- ance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1 5. An adsorption system with adsorbent regen- a. Maintain the daily average concentration i. Continuously monitoring the daily average eration to comply with an emission limit in level of organic compounds in the adsorber organic concentration in the adsorber ex- Table 2 to this subpart. exhaust less than or equal to the reference haust and maintaining the concentration concentration established during the design less than or equal to the reference con- evaluation or performance test that dem- centration established during the design onstrated compliance with the emission evaluation or performance test that dem- limit; OR onstrated compliance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1 b. Maintain the total regeneration stream i. Maintaining the total regeneration stream mass flow during the adsorption bed regen- mass flow during the adsorption bed regen- eration cycle greater than or equal to the eration cycle greater than or equal to the reference stream mass flow established reference stream mass flow established during the design evaluation or perform- during the design evaluation or perform- ance test that demonstrated compliance ance test that demonstrated compliance with the emission limit; AND with the emission limit; AND Before the adsorption cycle commences, ii. Maintaining the temperature of the adsorp- achieve and maintain the temperature of tion bed after regeneration less than or the adsorption bed after regeneration less equal to the reference temperature estab- than or equal to the reference temperature lished during the design evaluation or per- established during the design evaluation or formance test that demonstrated compli- performance test; AND ance with the emission limit; AND Achieve greater than or equal to the pressure iii. Achieving greater than or equal to the reduction during the adsorption bed regen- pressure reduction during the regeneration eration cycle established during the design cycle established during the design evalua- evaluation or performance test that dem- tion or performance test that demonstrated onstrated compliance with the emission limit. compliance with the emission limit; AND iv. Keeping the applicable records required in § 63.998.1

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For each existing, reconstructed, and each new You must demonstrate continuous compliance affected source using . . . For the following operating limit . . . by . . .

6. An adsorption system without adsorbent re- a. Maintain the daily average concentration i. Continuously monitoring the organic con- generation to comply with an emission limit in level of organic compounds in the adsorber centration in the adsorber exhaust and Table 2 to this subpart. exhaust less than or equal to the reference maintaining the concentration less than or concentration established during the design equal to the reference concentration estab- evaluation or performance test that dem- lished during the design evaluation or per- onstrated compliance with the emission formance test that demonstrated compli- limit; OR ance with the emission limit; AND ii. Keeping the applicable records required in § 63.998.1 b. Replace the existing adsorbent in each i. Replacing the existing adsorbent in each segment of the bed before the age of the segment of the bed with an adsorbent that adsorbent exceeds the maximum allowable meets the replacement specifications estab- age established during the design evalua- lished during the design evaluation or per- tion or performance test that demonstrated formance test before the age of the adsorb- compliance with the emission limit; AND ent exceeds the maximum allowable age Maintain the temperature of the adsorption established during the design evaluation or bed less than or equal to the reference performance test that demonstrated compli- temperature established during the design ance with the emission limit; AND evaluation or performance test that dem- ii. Maintaining the temperature of the adsorp- onstrated compliance with the emission limit. tion bed less than or equal to the reference temperature established during the design evaluation or performance test that dem- onstrated compliance with the emission limit; AND iii. Keeping the applicable records required in § 63.998.1 7. A flare to comply with an emission limit in a. Except as specified in item 7.e of this table, i. Continuously operating a device that detects Table 2 to this subpart. maintain a pilot flame or flare flame in the the presence of the pilot flame or flare flare at all times that vapors may be vented flame; AND to the flare (§ 63.11(b)(5)); AND ii. Keeping the applicable records required in § 63.998.1 b. Except as specified in item 7.e of this table, i. Maintaining a flare flame at all times that maintain a flare flame at all times that va- vapors are being vented to the flare; AND pors are being vented to the flare ii. Keeping the applicable records required in (§ 63.11(b)(5)); AND § 63.998.1 c. Except as specified in item 7.e of this table, i. Operating the flare with no visible emissions operate the flare with no visible emissions, exceeding the amount allowed; AND except for up to 5 minutes in any 2 con- ii. Keeping the applicable records required in secutive hours (§ 63.11(b)(4)); AND EI- § 63.998.1 THER d.1. Except as specified in item 7.e of this i. Operating the flare within the applicable exit table, operate the flare with an exit velocity velocity limits; AND that is within the applicable limits in ii. Operating the flare with the gas heating § 63.11(b)(7) and (8) and with a net heating value greater than the applicable minimum value of the gas being combusted greater value; AND than the applicable minimum value in iii. Keeping the applicable records required in § 63.11(b)(6)(ii); OR § 63.998.1 d.2. Except as specified in item 7.e of this i. Operating the flare within the applicable lim- table, adhere to the requirements in its in 63.11(b)(6)(i); AND § 63.11(b)(6)(i). ii. Keeping the applicable records required in § 63.998.1 e. Beginning no later than the compliance i. Operating the flare with the applicable limits dates specified in § 63.2342(e), comply with in § 63.2380; AND the requirements in § 63.2380 instead of the ii. Keeping the applicable records required in requirements in § 63.11(b). § 63.2390(h). 8. Another type of control device to comply with Submit a monitoring plan as specified in Submitting a monitoring plan and monitoring an emission limit in Table 2 to this subpart. §§ 63.995(c) and 63.2366(b) and monitor the control device according to that plan. the control device in accordance with that plan. 1 Beginning no later than the compliance dates specified in § 63.2342(e), the referenced provisions specified in § 63.2346(l) do not apply.

■ 31. Table 10 to subpart EEEE of Part Table 10 to Subpart EEEE of Part 63— continuous compliance with the work 63 is revised to read as follows: Continuous Compliance With Work practice standards for existing, Practice Standards reconstructed, or new affected sources As stated in §§ 63.2378(a) and (b) and according to the following table: 63.2386(c)(6), you must show

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You must demonstrate continuous compliance For each . . . For the following standard . . . by . . .

1. Internal floating roof (IFR) storage tank at an a. Install a floating roof designed and oper- i. Visually inspecting the floating roof deck, existing, reconstructed, or new affected ated according to the applicable specifica- deck fittings, and rim seals of each IFR source meeting any set of tank capacity, and tions in § 63.1063(a) and (b). once per year (§ 63.1063(d)(2)); AND vapor pressure criteria specified in Table 2 ii. Visually inspecting the floating roof deck, to this subpart, items 1 through 5, or Table deck fittings, and rim seals of each IFR ei- 2b to this subpart, items 1 through 3. ther each time the storage tank is com- pletely emptied and degassed or every 10 years, whichever occurs first (§ 63.1063(c)(1), (d)(1), and (e)); AND iii. Keeping the tank records required in § 63.1065. 2. External floating roof (EFR) storage tank at a. Install a floating roof designed and oper- i. Visually inspecting the floating roof deck, an existing, reconstructed, or new affected ated according to the applicable specifica- deck fittings, and rim seals of each EFR ei- source meeting any set of tank capacity and tions in § 63.1063(a) and (b). ther each time the storage tank is com- vapor pressure criteria specified in Table 2 pletely emptied and degassed or every 10 to this subpart, items 1 through 5, or Table years, whichever occurs first 2b to this subpart, items 1 through 3. (§ 63.1063(c)(2), (d), and (e)); AND ii. Performing seal gap measurements on the secondary seal of each EFR at least once every year, and on the primary seal of each EFR at least every 5 years (§ 63.1063(c)(2), (d), and (e)); AND iii. Keeping the tank records required in § 63.1065. 3. IFR or EFR tank at an existing, recon- a. Repair the conditions causing storage tank i. Repairing conditions causing inspection fail- structed, or new affected source meeting inspection failures (§ 63.1063(e)). ures: Before refilling the storage tank with any set of tank capacity and vapor pressure organic liquid, or within 45 days (or up to criteria specified in Table 2 to this subpart, 105 days with extensions) for a tank con- items 1 through 5, or Table 2b to this sub- taining organic liquid; AND part, items 1 through 3. ii. Keeping the tank records required in § 63.1065(b). 4. Transfer rack that is subject to control based a. Ensure that organic liquids are loaded into i. Ensuring that organic liquids are loaded into on the criteria specified in Table 2 to this transport vehicles in accordance with the re- transport vehicles in accordance with the re- subpart, items 7 through 10, at an existing, quirements in Table 4 to this subpart, items quirements in Table 4 to this subpart, items reconstructed, or new affected source. 5 or 6, as applicable. 5 or 6, as applicable. b. Install and, during the loading of organic liq- i. Monitoring each potential source of vapor uids, operate a vapor balancing system. leakage in the system quarterly during the loading of a transport vehicle or the filling of a container using the methods and proce- dures described in the rule requirements se- lected for the work practice standard for equipment leak components as specified in Table 4 to this subpart, item 4. An instru- ment reading of 500 ppmv defines a leak. Repair of leaks is performed according to the repair requirements specified in your se- lected equipment leak standards c. Route emissions to a fuel gas system or i. Continuing to meet the requirements speci- back to a process. fied in § 63.984(b) 5. Equipment leak component, as defined in a. Comply with § 63.2346(l) and the require- i. Carrying out a leak detection and repair pro- § 63.2406, that operates in organic liquids ments of 40 CFR part 63, subpart TT, UU, gram in accordance with the subpart se- service at least 300 hours per year. or H. lected from the list in item 5.a of this table 6. Storage tank at an existing, reconstructed, a. Route emissions to a fuel gas system or i. Continuing to meet the requirements speci- or new affected source meeting any of the back to the process. fied in § 63.984(b) tank capacity and vapor pressure criteria specified in Table 2 to this subpart, items 1 through 6, or Table 2b to this subpart, items 1 through 3.

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You must demonstrate continuous compliance For each . . . For the following standard . . . by . . .

b. Install and, during the filling of the storage i. Except for pressure relief devices, moni- tank with organic liquids, operate a vapor toring each potential source of vapor leak- balancing system. age in the system, including, but not limited to pumps, valves, and sampling connec- tions, quarterly during the loading of a stor- age tank using the methods and procedures described in the rule requirements selected for the work practice standard for equipment leak components as specified in Table 4 to this subpart, item 4. An instrument reading of 500 ppmv defines a leak. Repair of leaks is performed according to the repair require- ments specified in your selected equipment leak standards. For pressure relief devices, comply with § 63.2346(a)(4)(v). If no loading of a storage tank occurs during a quarter, then monitoring of the vapor balancing sys- tem is not required

■ 32. Table 11 to subpart EEEE of Part Table 11 to Subpart EEEE of Part 63— and startup, shutdown, and malfunction 63 is revised to read as follows: Requirements for Reports reports according to the following table: As stated in § 63.2386(a), (b), and (f), you must submit compliance reports

You must submit a(n) . . . The report must contain . . . You must submit the report . . .

1. Compliance report or Periodic Report ...... a. The information specified in § 63.2386(c), Semiannually, and it must be postmarked or (d), (e). If you had a SSM during the report- electronically submitted by January 31 or ing period and you took actions consistent July 31, in accordance with § 63.2386(b). with your SSM plan, the report must also include the information in § 63.10(d)(5)(i) except as specified in item 1.e of this table; AND. b. The information required by 40 CFR part See the submission requirement in item 1.a of 63, subpart TT, UU, or H, as applicable, for this table. pumps, valves, and sampling connections; AND. c. The information required by § 63.999(c); See the submission requirement in item 1.a of AND. this table. d. The information specified in § 63.1066(b) See the submission requirement in item 1.a of including: Notification of inspection, inspec- this table. tion results, requests for alternate devices, and requests for extensions, as applicable. e. Beginning no later than the compliance dates specified in § 63.2342(e), the require- ment to include the information in § 63.10(d)(5)(i) no longer applies.. 2. Immediate SSM report if you had a SSM that a. The information required in §63.10(d)(5)(ii) i. Except as specified in item 2.a.ii of this resulted in an applicable emission standard table, by letter within 7 working days after in the relevant standard being exceeded, and the end of the event unless you have made you took an action that was not consistent alternative arrangements with the permitting with your SSM plan. authority (§ 63.10(d)(5)(ii)). ii. Beginning no later than the compliance dates specified in § 63.2342(e), item 2.a.i of this table no longer applies.

■ 33. Table 12 to subpart EEEE of Part Table 12 to Subpart EEEE of Part 63— General Provisions requirements as 63 is revised to read as follows: Applicability of General Provisions to follows: Subpart EEEE As stated in §§ 63.2382 and 63.2398, you must comply with the applicable

Citation Subject Brief description Applies to subpart EEEE

§ 63.1 ...... Applicability ...... Initial applicability determination; Applicability Yes. after standard established; Permit require- ments; Extensions, Notifications.

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Citation Subject Brief description Applies to subpart EEEE

§ 63.2 ...... Definitions ...... Definitions for part 63 standards ...... Yes. § 63.3 ...... Units and Abbrevia- Units and abbreviations for part 63 standards Yes. tions. § 63.4 ...... Prohibited Activities Prohibited activities; Circumvention, Sever- Yes. and Circumvention. ability. § 63.5 ...... Construction/Recon- Applicability; Applications; Approvals ...... Yes. struction. § 63.6(a) ...... Compliance with GP apply unless compliance extension; GP Yes. Standards/O&M Ap- apply to area sources that become major. plicability. § 63.6(b)(1)–(4) ...... Compliance Dates for Standards apply at effective date; 3 years after Yes. New and Recon- effective date; upon startup; 10 years after structed Sources. construction or reconstruction commences for CAA section 112(f). § 63.6(b)(5) ...... Notification ...... Must notify if commenced construction or re- Yes. construction after proposal. § 63.6(b)(6) ...... [Reserved]. § 63.6(b)(7) ...... Compliance Dates for Area sources that become major must comply Yes. New and Recon- with major source standards immediately structed Area upon becoming major, regardless of whether Sources That Be- required to comply when they were an area come Major. source. § 63.6(c)(1)–(2) ...... Compliance Dates for Comply according to date in this subpart, Yes. Existing Sources. which must be no later than 3 years after ef- fective date; for section 112(f) standards, comply within 90 days of effective date un- less compliance extension. § 63.6(c)(3)–(4) ...... [Reserved]. § 63.6(c)(5) ...... Compliance Dates for Area sources that become major must comply Yes. Existing Area with major source standards by date indi- Sources That Be- cated in this subpart or by equivalent time come Major. period (e.g., 3 years). § 63.6(d) ...... [Reserved]. § 63.6(e)(1)(i) ...... Operation and Mainte- Operate to minimize emissions at all times ...... Yes, before July 7, 2023. nance. No, beginning on and after July 7, 2023. See § 63.2350(d) for general duty requirement. § 63.6(e)(1)(ii) ...... Operation and Mainte- Correct malfunctions as soon as practicable ... Yes, before July 7, 2023. nance. No, beginning on and after July 7, 2023. § 63.6(e)(1)(iii) ...... Operation and Mainte- Operation and maintenance requirements Yes. nance. independently enforceable; information Ad- ministrator will use to determine if operation and maintenance requirements were met. § 63.6(e)(2) ...... [Reserved]. § 63.6(e)(3) ...... SSM Plan ...... Requirement for SSM plan; content of SSM Yes, before July 7, 2023; however, (1) the 2- plan; actions during SSM. day reporting requirement in paragraph § 63.6(e)(3)(iv) does not apply and (2) § 63.6(e)(3) does not apply to emissions sources not requiring control. No, beginning on and after July 7, 2023. § 63.6(f)(1) ...... Compliance Except You must comply with emission standards at Yes, before July 7, 2023. During SSM. all times except during SSM. No, beginning on and after July 7, 2023. § 63.6(f)(2)–(3) ...... Methods for Deter- Compliance based on performance test, oper- Yes. mining Compliance. ation and maintenance plans, records, in- spection. § 63.6(g)(1)–(3) ...... Alternative Standard ... Procedures for getting an alternative standard Yes. § 63.6(h)(1) ...... Opacity/Visible Emis- You must comply with opacity and visible Yes, before July 7, 2023. sion Standards. emission standards at all times except dur- No, beginning on and after July 7, 2023. ing SSM. § 63.6(h)(2)–(9) ...... Opacity/Visible Emis- Requirements for compliance with opacity and No; except as it applies to flares for which sion Standards. visible emission standards. Method 22 observations are required as part of a flare compliance assessment. § 63.6(i)(1)–(14) ...... Compliance Extension Procedures and criteria for Administrator to Yes. grant compliance extension. § 63.6(j) ...... Presidential Compli- President may exempt any source from re- Yes. ance Exemption. quirement to comply with this subpart. § 63.7(a)(2) ...... Performance Test Dates for conducting initial performance test- Yes. Dates. ing; must conduct 180 days after compli- ance date. § 63.7(a)(3) ...... Section 114 Authority .. Administrator may require a performance test Yes. under CAA section 114 at any time. § 63.7(b)(1) ...... Notification of Perform- Must notify Administrator 60 days before the Yes. ance Test. test.

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Citation Subject Brief description Applies to subpart EEEE

§ 63.7(b)(2) ...... Notification of Re- If you have to reschedule performance test, Yes. scheduling. must notify Administrator of rescheduled date as soon as practicable and without delay. § 63.7(c) ...... Quality Assurance Requirement to submit site-specific test plan Yes. (QA)/Test Plan. 60 days before the test or on date Adminis- trator agrees with; test plan approval proce- dures; performance audit requirements; in- ternal and external QA procedures for test- ing. § 63.7(d) ...... Testing Facilities ...... Requirements for testing facilities ...... Yes. § 63.7(e)(1) ...... Conditions for Con- Performance tests must be conducted under Yes, before July 7, 2023. ducting Performance representative conditions; cannot conduct No, beginning on and after July 7, 2023. See Tests. performance tests during SSM. § 63.2354(b)(6). § 63.7(e)(2) ...... Conditions for Con- Must conduct according to this subpart and Yes. ducting Performance EPA test methods unless Administrator ap- Tests. proves alternative. § 63.7(e)(3) ...... Test Run Duration ...... Must have three test runs of at least 1 hour Yes; however, for transfer racks per each; compliance is based on arithmetic §§ 63.987(b)(3)(i)(A)–(B) and mean of three runs; conditions when data 63.997(e)(1)(v)(A)–(B) provide exceptions to from an additional test run can be used. the requirement for test runs to be at least 1 hour each. § 63.7(e)(4) ...... Authority to Require Administrator has authority to require testing Yes. Testing. under CAA section 114 regardless of § 63.7 (e)(1)–(3). § 63.7(f) ...... Alternative Test Meth- Procedures by which Administrator can grant Yes. od. approval to use an intermediate or major change, or alternative to a test method. § 63.7(g) ...... Performance Test Data Must include raw data in performance test re- Yes, except this subpart specifies how and Analysis. port; must submit performance test data 60 when the performance test and performance days after end of test with the Notification of evaluation results are reported. Compliance Status; keep data for 5 years. § 63.7(h) ...... Waiver of Tests ...... Procedures for Administrator to waive perform- Yes. ance test. § 63.8(a)(1) ...... Applicability of Moni- Subject to all monitoring requirements in Yes. toring Requirements. standard. § 63.8(a)(2) ...... Performance Specifica- Performance Specifications in appendix B of Yes. tions. 40 CFR part 60 apply. § 63.8(a)(3) ...... [Reserved]. § 63.8(a)(4) ...... Monitoring of Flares .... Monitoring requirements for flares in § 63.11 ... Yes, before July 7, 2023; however, flare moni- toring requirements in § 63.987(c) also apply before July 7, 2023. No, beginning on and after July 7, 2023. See § 63.2380. § 63.8(b)(1) ...... Monitoring ...... Must conduct monitoring according to standard Yes. unless Administrator approves alternative. § 63.8(b)(2)–(3) ...... Multiple Effluents and Specific requirements for installing monitoring Yes. Multiple Monitoring systems; must install on each affected Systems. source or after combined with another af- fected source before it is released to the at- mosphere provided the monitoring is suffi- cient to demonstrate compliance with the standard; if more than one monitoring sys- tem on an emission point, must report all monitoring system results, unless one moni- toring system is a backup. § 63.8(c)(1) ...... Monitoring System Op- Maintain monitoring system in a manner con- Yes. eration and Mainte- sistent with good air pollution control prac- nance. tices. § 63.8(c)(1)(i) ...... Routine and Predict- Keep parts for routine repairs readily available; Yes, before July 7, 2023. able SSM. reporting requirements for SSM when action No, beginning on and after July 7, 2023. is described in SSM plan. § 63.8(c)(1)(ii) ...... CMS malfunction not in Keep the necessary parts for routine repairs if Yes. SSM plan. CMS malfunctions. § 63.8(c)(1)(iii) ...... Compliance with Oper- Develop a written SSM plan for CMS ...... Yes, before July 7, 2023. ation and Mainte- No, beginning on and after July 7, 2023. nance Requirements. § 63.8(c)(2)–(3) ...... Monitoring System In- Must install to get representative emission or Yes. stallation. parameter measurements; must verify oper- ational status before or at performance test.

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Citation Subject Brief description Applies to subpart EEEE

§ 63.8(c)(4) ...... CMS Requirements ..... CMS must be operating except during break- Yes; however, COMS are not applicable. down, out-of-control, repair, maintenance, and high-level calibration drifts; COMS must have a minimum of one cycle of sampling and analysis for each successive 10-second period and one cycle of data recording for each successive 6-minute period; CEMS must have a minimum of one cycle of oper- ation for each successive 15-minute period. § 63.8(c)(5) ...... COMS Minimum Pro- COMS minimum procedures ...... No. cedures. § 63.8(c)(6)–(8) ...... CMS Requirements ..... Zero and high level calibration check require- Yes, but only applies for CEMS. Subpart SS of ments. Out-of-control periods. this part provides requirements for CPMS. § 63.8(d)(1)–(2) ...... CMS Quality Control ... Requirements for CMS quality control ...... Yes, but only applies for CEMS. Subpart SS of this part provides requirements for CPMS. § 63.8(d)(3) ...... CMS Quality Control ... Must keep quality control plan on record for 5 Yes, before July 7, 2023, but only applies for years; keep old versions. CEMS. Subpart SS of this part provides re- quirements for CPMS. No, beginning on and after July 7, 2023. See § 63.2366(c). § 63.8(e) ...... CMS Performance Notification, performance evaluation test plan, Yes, but only applies for CEMS, except this Evaluation. reports. subpart specifies how and when the per- formance evaluation results are reported. § 63.8(f)(1)–(5) ...... Alternative Monitoring Procedures for Administrator to approve alter- Yes, but subpart SS of this part also provides Method. native monitoring. procedures for approval of CPMS. § 63.8(f)(6) ...... Alternative to Relative Procedures for Administrator to approve alter- Yes. Accuracy Test. native relative accuracy tests for CEMS. § 63.8(g) ...... Data Reduction ...... COMS 6-minute averages calculated over at Yes; however, COMS are not applicable. least 36 evenly spaced data points; CEMS 1 hour averages computed over at least four equally spaced data points; data that cannot be used in average. § 63.9(a) ...... Notification Require- Applicability and State delegation ...... Yes. ments. § 63.9(b)(1)–(2), (4)– Initial Notifications ...... Submit notification within 120 days after effec- Yes. (5). tive date; notification of intent to construct/ reconstruct, notification of commencement of construction/reconstruction, notification of startup; contents of each. § 63.9(c) ...... Request for Compli- Can request if cannot comply by date or if in- Yes. ance Extension. stalled best available control technology or lowest achievable emission rate (BACT/ LAER). § 63.9(d) ...... Notification of Special For sources that commence construction be- Yes. Compliance Require- tween proposal and promulgation and want ments for New to comply 3 years after effective date. Sources. § 63.9(e) ...... Notification of Perform- Notify Administrator 60 days prior ...... Yes. ance Test. § 63.9(f) ...... Notification of VE/ Notify Administrator 30 days prior ...... No. Opacity Test. § 63.9(g) ...... Additional Notifications Notification of performance evaluation; notifica- Yes; however, there are no opacity standards. When Using CMS. tion about use of COMS data; notification that exceeded criterion for relative accuracy alternative. § 63.9(h)(1)–(6) ...... Notification of Compli- Contents due 60 days after end of perform- Yes; however, (1) there are no opacity stand- ance Status. ance test or other compliance demonstra- ards and (2) all initial Notification of Compli- tion, except for opacity/visible emissions, ance Status, including all performance test which are due 30 days after; when to submit data, are to be submitted at the same time, to federal vs. state authority. either within 240 days after the compliance date or within 60 days after the last perform- ance test demonstrating compliance has been completed, whichever occurs first. § 63.9(i) ...... Adjustment of Sub- Procedures for Administrator to approve Yes. mittal Deadlines. change in when notifications must be sub- mitted. § 63.9(j) ...... Change in Previous In- Must submit within 15 days after the change .. No. These changes will be reported in the first formation. and subsequent compliance reports. § 63.10(a) ...... Recordkeeping/Report- Applies to all, unless compliance extension; Yes. ing. when to submit to federal vs. state authority; procedures for owners of more than one source.

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Citation Subject Brief description Applies to subpart EEEE

§ 63.10(b)(1) ...... Recordkeeping/Report- General requirements; keep all records readily Yes. ing. available; keep for 5 years. § 63.10(b)(2)(i) ...... Records Related to Occurrence of each for operations (process Yes, July 7, 2023. Startup and Shut- equipment). No, beginning on and after July 7, 2023. down. § 63.10(b)(2)(ii) ...... Recordkeeping Rel- Occurrence of each malfunction of air pollution Yes, before July 7, 2023. evant to Malfunction equipment. No, beginning on and after July 7, 2023. See Periods and CMS. § 63.2390(f). § 63.10(b)(2)(iii) ...... Recordkeeping Rel- Maintenance on air pollution control equipment Yes. evant to Mainte- nance of Air Pollu- tion Control and Monitoring Equip- ment. § 63.10(b)(2)(iv) ...... Recordkeeping Rel- Actions during SSM ...... Yes, before July 7, 2023. evant to SSM Peri- No, beginning on and after July 7, 2023. ods and CMS. § 63.10(b)(2)(v) ...... Recordkeeping Rel- Actions during SSM ...... No. evant to SSM Peri- ods and CMS. § 63.10(b)(2)(vi)–(xi) CMS Records...... Malfunctions, inoperative, out-of-control peri- Yes. ods. § 63.10(b)(2)(xii) ...... Records ...... Records when under waiver ...... Yes. § 63.10(b)(2)(xiii) ..... Records ...... Records when using alternative to relative ac- Yes. curacy test. § 63.10(b)(2)(xiv) ..... Records ...... All documentation supporting initial notification Yes. and notification of compliance status. § 63.10(b)(3) ...... Records ...... Applicability determinations ...... Yes. § 63.10(c)(1)–(14) .... Records ...... Additional records for CMS ...... Yes. § 63.10(c)(15) ...... Records ...... Additional records for CMS ...... Yes, before July 7, 2023. No, beginning on and after July 7, 2023. § 63.10(d)(1) ...... General Reporting Re- Requirement to report ...... Yes. quirements. § 63.10(d)(2) ...... Report of Performance When to submit to federal or state authority .... No. This subpart specifies how and when the Test Results. performance test results are reported. § 63.10(d)(3) ...... Reporting Opacity or What to report and when ...... Yes. Visible Emissions Observations. § 63.10(d)(4) ...... Progress Reports ...... Must submit progress reports on schedule if Yes. under compliance extension. § 63.10(d)(5) ...... SSM Reports ...... Contents and submission ...... Yes, before July 7, 2023. No, beginning on and after July 7, 2023. See § 63.2386(d)(1)(xiii). § 63.10(e)(1)–(2) ..... Additional CMS Re- Must report results for each CEMS on a unit; Yes, except this subpart specifies how and ports. written copy of CMS performance evalua- when the performance evaluation results are tion; two-three copies of COMS performance reported; however, COMS are not applica- evaluation. ble. § 63.10(e)(3)(i)–(iii) .. Reports ...... Schedule for reporting excess emissions and Yes; however, note that the title of the report parameter monitor exceedance (now defined is the compliance report; deviations include as deviations). excess emissions and parameter exceedances. § 63.10(e)(3)(iv)–(v) Excess Emissions Re- Requirement to revert to quarterly submission Yes. ports. if there is an excess emissions or parameter monitoring exceedance (now defined as de- viations); provision to request semiannual reporting after compliance for 1 year; submit report by 30th day following end of quarter or calendar half; if there has not been an exceedance or excess emissions (now de- fined as deviations), report contents in a statement that there have been no devi- ations; must submit report containing all of the information in §§ 63.8(c)(7)–(8) and 63.10(c)(5)–(13). § 63.10(e)(3)(vi)– Excess Emissions Re- Requirements for reporting excess emissions No. This subpart specifies the reported infor- (viii). port and Summary for CMS (now called deviations); requires all mation for deviations within the compliance Report. of the information in §§ 63.10(c)(5)–(13) and reports. 63.8(c)(7)–(8). § 63.10(e)(4) ...... Reporting COMS Data Must submit COMS data with performance test No. data. § 63.10(f) ...... Waiver for Record- Procedures for Administrator to waive ...... Yes. keeping/Reporting.

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Citation Subject Brief description Applies to subpart EEEE

§ 63.11(b) ...... Flares ...... Requirements for flares ...... Yes, before July 7, 2023; § 63.987 require- ments apply, and the section references § 63.11(b). No, beginning on and after July 7, 2023. See § 63.2380. § 63.11(c), (d), and Control and work prac- Alternative work practice for equipment leaks Yes. (e). tice requirements. § 63.12 ...... Delegation ...... State authority to enforce standards ...... Yes. § 63.13 ...... Addresses ...... Addresses where reports, notifications, and re- Yes. quests are sent. § 63.14 ...... Incorporation by Ref- Test methods incorporated by reference ...... Yes. erence. § 63.15 ...... Availability of Informa- Public and confidential information ...... Yes. tion.

[FR Doc. 2020–05900 Filed 7–6–20; 8:45 am] BILLING CODE 6560–50–P

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Part III

Department of the Treasury

Office of the Comptroller of the Currency 12 CFR Parts 7, 145, 155, et al. Activities and Operations of National Banks and Federal Savings Associations; National Bank and Federal Savings Association Digital Activities; Proposed Rule

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DEPARTMENT OF THE TREASURY the screen. For help with submitting ‘‘Sort By’’ drop-down on the right side effective comments please click on of the screen or the ‘‘Refine Results’’ Office of the Comptroller of the ‘‘Commenter’s Checklist.’’ For options on the left side of the screen. Currency assistance with the Regulations.gov Beta Supporting Materials can be viewed by site please call (877)–378–5457 (toll clicking on the ‘‘Documents’’ tab and 12 CFR Parts 7, 145 and 160 free) or (703) 454–9859 Monday–Friday, filtered by clicking on the ‘‘Sort By’’ [Docket ID OCC–2020–0003] 9 a.m.–5 p.m. ET or email to drop-down on the right side of the [email protected]. screen or the ‘‘Refine Results’’ options • RIN 1557–AE74 Email: regs.comments@ on the left side of the screen.’’ For occ.treas.gov. Activities and Operations of National • assistance with the Regulations.gov Beta Mail: Chief Counsel’s Office, site please call (877)–378–5457 (toll Banks and Federal Savings Attention: Comment Processing, Office free) or (703) 454–9859 Monday–Friday, Associations of the Comptroller of the Currency, 400 9 a.m.–5 p.m. ET or email to 7th Street SW, Suite 3E–218, AGENCY: Office of the Comptroller of the [email protected]. Currency, Treasury. Washington, DC 20219. • Hand Delivery/Courier: 400 7th The docket may be viewed after the ACTION: Notice of proposed rulemaking. Street SW, Suite 3E–218, Washington, close of the comment period in the same DC 20219. manner as during the comment period. SUMMARY: The Office of the Comptroller • of the Currency is issuing a notice of Fax: (571) 465–4326. Instructions: You must include FOR FURTHER INFORMATION CONTACT: Beth proposed rulemaking to revise and ‘‘OCC’’ as the agency name and ‘‘Docket Kirby, Assistant Director, Valerie Song, reorganize its regulations relating to the ID OCC–2020–0003’’ in your comment. Assistant Director, Heidi Thomas, activities and operations of national In general, the OCC will enter all Special Counsel, or Chris Rafferty, banks and Federal savings associations. comments received into the docket and Attorney, Chief Counsel’s Office, (202) This proposal would clarify and codify publish the comments on the 649–5490, Office of the Comptroller of recent OCC interpretations, integrate Regulations.gov website without the Currency, 400 7th Street SW, certain regulations for national banks change, including any business or Washington, DC 20219. For persons and Federal savings associations, and personal information provided such as who are deaf or hearing impaired, TTY, update or eliminate outdated regulatory name and address information, email (202) 649–5597. requirements that no longer reflect the addresses, or phone numbers. modern financial system. SUPPLEMENTARY INFORMATION: Comments received, including DATES: Comments must be received on attachments and other supporting I. Background or before August 3, 2020. materials, are part of the public record ADDRESSES: Commenters are encouraged and subject to public disclosure. Do not The Office of the Comptroller of the to submit comments through the Federal include any information in your Currency (OCC) periodically reviews its eRulemaking Portal or email, if possible. comment or supporting materials that regulations to eliminate outdated or Please use the title ‘‘Activities and you consider confidential or otherwise unnecessary regulatory Operations of National Banks and inappropriate for public disclosure. provisions and, where possible, to Federal Savings Associations’’ to You may review comments and other clarify or revise requirements imposed facilitate the organization and related materials that pertain to this on national banks and Federal savings distribution of the comments. You may rulemaking action by any of the associations. These reviews are in submit comments by any of the following methods: addition to the OCC’s decennial review following methods: • Viewing Comments Electronically— of its regulations as required by the • Federal eRulemaking Portal— Regulations.gov Classic or Economic Growth and Regulatory Regulations.gov Classic or Regulations.gov Beta:Regulations.gov Paperwork Reduction Act (EGRPRA).1 Regulations.gov Beta Regulations.gov Classic: Go to https:// These reviews also consider, where Classic: Go to https:// www.regulations.gov/. Enter ‘‘Docket ID appropriate, opportunities to integrate www.regulations.gov/. Enter ‘‘Docket ID OCC–2020–0003’’ in the Search box and rules that apply to national banks with OCC 2020–0003’’ in the Search Box and click ‘‘Search.’’ Click on ‘‘Open Docket similar rules that apply to Federal click ‘‘Search.’’ Click on ‘‘Comment Folder’’ on the right side of the screen. savings associations in light of the Now’’ to submit public comments. For Comments and supporting materials can transfer to the OCC of all functions of help with submitting effective be viewed and filtered by clicking on the former Office of Thrift Supervision comments please click on ‘‘View ‘‘View all documents and comments in (OTS) relating to Federal savings Commenter’s Checklist.’’ Click on the this docket’’ and then using the filtering association by Title III of the Dodd- ‘‘Help’’ tab on the Regulations.gov home tools on the left side of the screen. Click page to get information on using on the ‘‘Help’’ tab on the 1 Public Law 104–208 (1996), codified at 12 Regulations.gov, including instructions Regulations.gov home page to get U.S.C. 3311(b). Section 2222 of EGRPRA requires for submitting public comments. information on using Regulations.gov. that, at least once every 10 years, the OCC along with the other Federal banking agencies and the Regulations.gov Beta: Go to https:// The docket may be viewed after the Federal Financial Institutions Examination Council beta.regulations.gov/ or click ‘‘Visit close of the comment period in the same (FFIEC) conduct a review of their regulations to New Regulations.gov Site’’ from the manner as during the comment period. identify outdated or otherwise unnecessary Regulations.gov classic homepage. Enter Regulations.gov Beta: Go to https:// regulatory requirements imposed on insured depository institutions. Specifically, EGRPRA ‘‘Docket ID OCC–2020–0003’’ in the beta.regulations.gov/ or click ‘‘Visit requires the agencies to categorize and publish their Search Box and click ‘‘Search.’’ Public New Regulations.gov Site’’ from the regulations for comment, eliminate unnecessary comments can be submitted via the Regulations.gov classic homepage. Enter regulations to the extent that such action is ‘‘Comment’’ box below the displayed ‘‘Docket ID OCC–2020–0003’’ in the appropriate, and submit a report to Congress summarizing their review. The agencies completed document information or click on the Search Box and click ‘‘Search.’’ Click on their second EGRPRA review on March 2017 and document title and click the the ‘‘Comments’’ tab. Comments can be published their report in the Federal Register. 82 ‘‘Comment’’ box on the top-left side of viewed and filtered by clicking on the FR 15900 (March 30, 2017).

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Frank Wall Street Reform and Consumer associations that seek to engage in National Bank Acting as Finder Protection Act.2 certain corporate transactions or (§ 7.1002) As part of this process, the OCC is activities.4 The OCC is proposing a technical proposing to revise and reorganize II. Description of the Proposed Rule change to its finder regulation at subparts A through D of 12 CFR part 7, § 7.1002 and invites comment on the Activities and Operations. Specifically, Subpart A—National Banks and Federal inclusion of Federal savings association the OCC is proposing new regulations or Savings Association Powers finder activities in part 7. The OCC has updates to existing regulations to long permitted a national bank to act as address developing issues and industry Activities That are Part of, or Incidental a finder to bring together buyers and practices and to clarify OCC interpretive to, the Business of Banking (New sellers of financial and nonfinancial positions. For example, proposed § 7.1000) products and services.6 The OCC’s revisions to subpart A include new regulations include two separate rules regulations covering tax equity finance Section 7.5001 identifies the criteria that the OCC uses to determine whether relating to permissible national bank transactions, derivatives activities, and finder activities. Section 7.1002, which payment system memberships. an electronic activity is authorized for national banks as part of, or incidental codifies OCC interpretive letters, Proposed revisions to subpart B address provides that finder activities are part of to, the business of banking under 12 corporate governance issues, such as the business of banking.7 This section U.S.C. 24(Seventh) or other statutory expanding the ability of national banks also describes permissible finder authority. While this section details to choose corporate governance activities; provides an illustrative, non- those criteria in the context of electronic provisions under State or other law, exclusive list of permissible finder activities, the OCC uses these same clarifying permissible anti-takeover activities; clarifies that a national bank’s criteria to determine whether any provisions, and adding provisions finder authority does not allow it to relating to capital stock-related activities activity is part of, or incidental to, the engage in brokerage activities that have of national banks. The OCC also is business of banking. To confirm the not been found to be permissible for proposing to update and integrate rules broader applicability of the criteria national banks; and authorizes a relating to bank hours and closings in listed in § 7.5001, the OCC is proposing national bank to advertise and accept subpart C and to update rules relating to to remove the word ‘‘electronic’’ from fees for finder services unless otherwise loan production and deposit production this section and move § 7.5001 to prohibited by Federal law. Section offices and remote service units in subpart A of part 7 as new § 7.1000. As 7.5002 provides that a national bank subpart D and move these sections to part of this move, the proposal would generally may perform, provide, or subpart A to improve the organization of redesignate current § 7.1000 as § 7.1024. deliver through electronic means and part 7.3 As a companion to this These proposed changes would better facilities any activity, function, product, proposed rule, the OCC is separately organize OCC rules and clarify that the issuing an Advance Notice of Proposed or service that is otherwise permissible. criteria of this new § 7.1000 may apply Section 7.5002(a)(1) clarifies that a Rulemaking (ANPR), published to any potential national bank activity elsewhere in this issue of the Federal national bank may act as electronic and not just those that are electronic in finders and includes a list of Register as a separate document, that nature. The OCC believes that new 8 requests comment on subpart E of 12 permissible electronic finder activities. § 7.1000 belongs at the beginning of part The OCC is proposing to amend its CFR part 7 and 12 CFR part 155, the 7 because it provides the framework for regulations by adding a new paragraph OCC’s rules on electronic banking all national bank powers that follow in (8) to § 7.1002(b) that would cross- activities. subpart A. The OCC also is proposing more reference the permissible electronic general changes throughout part 7 The OCC also proposes a technical finder activities listed in § 7.5002(a)(1). including removing outdated or change to § 7.1000(c)(1). Specifically, This change would reference all superfluous regulations; consolidating the proposed rule would amend this examples of permissible finder activities related regulations into one section; and provision to clarify that the four-factor for national banks in one rule. making various technical changes test set forth in this section to determine While finder activities are part of the throughout part 7. In addition, the OCC activities authorized as part of the business of banking for a national bank, is proposing to integrate a number of business of banking applies to activities a Federal savings association may rules in part 7 to include Federal not specifically included in 12 U.S.C. engage in a finder activity only to the savings associations. 24(Seventh) or other statutory authority. extent that the activity is incidental to This proposed rule accompanies other Activities that are specifically included Federal savings association powers OCC efforts to modernize OCC rules, in 12 U.S.C. 24(Seventh) or other authorized under the Home Owners’ remove unnecessary burden, and clarify statutory authority are by express Loan Act (HOLA) (12 U.S.C. 1461 et 9 requirements, including the proposed statutory language within the business seq). The former OTS determined that, rule published in the Federal Register of banking. This clarification reflects the on April 2, 2020, which would amend 6 See, e.g., OCC Interpretive Letter No. 607 (Aug. OCC’s long-standing use of the four- 24, 1992). requirements in 12 CFR part 5 for factor test to determine whether an 7 See, e.g., OCC Interpretive Letter No. 824 (Feb. national banks and Federal savings activity not expressly included in a 27, 1998). statute is within the business of 8 The OCC’s ANPR on National Bank and Federal 2 Public Law 111–203, 124 Stat. 1376 (2010) banking.5 Savings Association Use of Digital Technology, (transferring to the OCC all functions of the former published elsewhere in this issue of the Federal OTS relating to Federal savings associations). Register as a separate document, also requests 3 The OCC has separately proposed a rule that 4 85 FR 18728. comment on whether to add more examples to the would amend 12 CFR 7.4001. See 84 FR 64229 5 The Supreme Court has held that the business electronic finder activities list in 12 CFR (Nov. 21, 2019) (Permissible Interest on Loans That of banking is not limited to the enumerated powers 7.5002(a)(1). Are Sold, Assigned, or Otherwise Transferred). The listed in 12 U.S.C. 24(Seventh) but encompasses 9 The OCC and the predecessor agencies OCC also has issued an interim final rule that more broadly activities that are part of or incidental previously responsible for the supervision of amends 12 CFR 7.1001 and 7.1003. See 85 FR 31943 to the business of banking. NationsBank of N.C., Federal savings associations ‘‘have long recognized (May 28, 2020) (Director, Shareholder, and Member N.A. v. Variable Annuity Life Ins. Co., 513 U.S. 251, that federal savings associations possess ‘incidental’ Meetings). 258–60 (1995). Continued

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if certain factors are met, a Federal where the borrower in-person receives national bank.16 Proposed paragraph (c) savings association may collect fees for loan proceeds directly from bank funds reflects this OCC precedent. referring customers to third parties 10 either: (1) From the lending bank or its Establishment of a Loan Production and may provide services and products operating subsidiary or (2) at a facility Office by a National Bank (§ 7.1004) to customers through a third-party that is established by the lending bank discount program 11 as activities or its operating subsidiary. Section Credit Decisions at Other Than Banking incidental to their statutorily 7.1003(b) further provides that a Offices of a National Bank (§ 7.1005) enumerated powers. The OCC also has borrower may receive loan proceeds Section 7.1004 provides that a recognized Federal savings association directly from bank funds in person at a national bank may use the services of finder authority in its Retail Nondeposit place that is not the bank’s main office persons not employed by the bank for Investment Products Booklet of the and is not licensed as a branch without originating loans. It also provides that Comptroller’s Handbook.12 violating 12 U.S.C. 36, 12 U.S.C. 81, and an employee or agent of a national bank The OCC invites comment on whether 12 CFR 5.30, provided that a third party or its subsidiary may originate a loan at it should add a separate provision to is used to deliver the funds and the a site other than the main office or a § 7.1002 to set forth Federal savings place is not established by the lending branch office of the bank without association finder authority. This bank or its operating subsidiary. This violating the branching and place of provision could provide that a Federal paragraph defines a third party to business requirements of 12 U.S.C. 36 savings association may engage in finder include a person who satisfies the and 12 U.S.C. 81 if the loan is approved activities to the extent that those requirements of § 7.1012(c)(2) or one and made at the main office or a branch activities are incidental to Federal who customarily delivers loan proceeds office of the bank or at an office of an savings association powers expressly directly from bank funds under operating subsidiary located on the authorized under the HOLA. The OCC accepted industry practice, such as an premises of, or contiguous to, the main also could include in this provision a attorney or escrow agent at a real estate office or branch office of the bank. list of Federal savings association finder closing. Section 7.1005 provides that a national activities that the former OTS or the The OCC is proposing to amend bank and its operating subsidiary may OCC have determined are permissible. § 7.1003 to incorporate an OCC make a credit decision regarding a loan This list could codify prior interpretation that further clarifies when application at a site other than the main interpretations and include collecting the OCC considers money to be lent at office or a branch office of the bank fees for referring customers to third a location other than the main office. provided that ‘‘money’’ is not ‘‘lent’’ at parties and providing services and Specifically, proposed paragraph (c) those other sites within the meaning of products to customers through a third- would provide that a national bank § 7.1003. party discount program. The OCC operating subsidiary may distribute loan OCC precedent has explained that the specifically requests comment on what proceeds from its own funds or bank purpose of § 7.1004 is not to prescribe other Federal savings association finder funds directly to the borrower in person where certain activities must be activities the OCC could add to this list. at offices the operating subsidiary performed but rather to help avoid Money Lent by a National Bank at established without violating 12 U.S.C. violations of the branching laws by Banking Offices or at Facilities Other 36, 12 U.S.C. 81, and 12 CFR 5.30 if the defining a ‘‘safe harbor’’ of loan Than Banking Offices (§ 7.1003) operating subsidiary provides similar origination activities that will not services on substantially similar terms constitute branching.17 Further, the Twelve U.S.C. 81 provides that a and conditions to customers of OCC has stated that this section does national bank must transact business in unaffiliated entities, including not purport to address the outer limits the place specified in its organization unaffiliated banks.13 Based on Supreme of what is permissible nor establish any certificate and in any branches Court precedent,14 OCC interpretations affirmative requirement for where loan established or maintained in accordance have recognized that a facility must production office (LPO)-originated loans with 12 U.S.C. 36. The OCC interprets provide a convenience to bank must be approved or made.18 The OCC 12 U.S.C. 81 to mean that money is customers that gives the bank a has found that § 7.1004 should not be deemed to be lent at a bank’s main competitive advantage in obtaining read to require loans originated at LPOs office unless there is a sufficient nexus customers for the facility to be to be approved and made at a main or tying the transaction to another location, considered a branch for purposes of 12 branch office, and that it is permissible in which case that location must be U.S.C. 36 and 12 CFR 5.30.15 The OCC for loans originated at an LPO to be licensed as a branch office. has found that a facility where members approved at separate back office Twelve U.S.C. 36 and 12 CFR 5.30 of the public, customers, and facilities not located on the premises of, define ‘‘branch’’ as a place of business noncustomers alike receive substantially or contiguous to, a main or branch office established by the national bank where similar services on substantially similar of the bank.19 These OCC ‘‘deposits are received, or checks paid, terms is not a facility created to attract interpretations were codified in or money lent.’’ Section 7.1003 provides bank customers and thus the § 7.1005. When the OCC adopted that for purposes of what constitutes a establishment of this type of facility § 7.1005, the agency noted that it was branch within the meaning of 12 U.S.C. offers no competitive advantage to the retaining § 7.1004 despite the potential 36 and 12 CFR 5.30, ‘‘money’’ is deemed tension between the two sections to be ‘‘lent’’ only at the place, if any, 13 See Interpretive Letter No. 814 (Nov. 3, 1997). because § 7.1004 is a judicially 14 In First National Bank in Plant City v. recognized safe harbor permitting powers, i.e., powers that are incident to the express Dickinson, the Supreme Court explained that national banks to undertake certain powers of federal savings associations as set forth because the purpose of 12 U.S.C. 36 is to maintain in the Home Owners’ Loan Act.’’ OTS Op. Acting competitive equality, it is relevant in construing the Ch. Couns. at 3 (Mar. 25, 1994). term ‘‘branch’’ to consider whether the facility gives 16 See OCC Interpretive Letter No. 814 (Nov. 3, 10 OTS Op. Ch. Couns. (May 5, 2000). the bank an advantage in its competition for 1997). 11 OTS Op. Ch. Couns. (Aug. 5, 2008). customers. First National Bank in Plant City v. 17 OCC Interpretive Letter No. 634 (July 23, 1993). 12 OCC, Comptroller’s Handbook: Retail Dickinson, 396 U.S. 122, 136–137 (1969). 18 Id.; OCC Interpretive Letter No. 667 (Oct. 12, Nondeposit Investment Products Booklet at 9 (Jan. 15 See OCC Interpretive Letter No. 635 (July 23, 1994). 2015). 1993). See also 61 FR 60342, 60347 (Nov. 27, 1996). 19 OCC Interpretive Letter No. 667 (Oct. 12, 1994).

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lending related activities without kicker.’’ Section 7.1006 further provides streamline OCC regulations while not violating branching statutes, and that it that the national bank may take the substantively changing the methods did not view a lending related activity share or stock warrant in addition to, or national banks may use to perfect their that falls outside the scope of § 7.1004, in lieu of, interest. However, the interests in stock or other securities as with § 7.1005 regarding the making of national bank may not condition the obtained as collateral for loans, which credit decisions, as necessarily violating borrower’s ability to repay principal on continue to include being listed as branching statutes.20 the value of the profit, income, earnings nominee if permitted under State law. The OCC is proposing to amend of the business enterprise or upon the § 7.1004 so that it reflects the broader value of the warrant received. Postal Services by National Banks and permissibility provided by current The former OTS and its predecessor, Federal Savings Associations (§ 7.1010) § 7.1005, to describe the permitted the Federal Home Loan Bank Board, Section 7.1010 provides that a activities as ‘‘loan production permitted a Federal savings association national bank may operate a postal activities,’’ and to remove § 7.1005 to to take a share of profit, income, or substation on banking premises and simplify and streamline its rules. As earnings as consideration for a loan as receive income from it. It describes the proposed, paragraph (a) of § 7.1004 not inconsistent with Federal savings types of services permitted and states would provide that a national bank or association lending authority under that a bank may advertise them to attract its operating subsidiary may engage in HOLA 21 to maintain parity with the customers to the bank. It also requires loan production activities at a site other commercial lending practices of the bank to operate the substation in than the main office or a branch office national banks.22 In addition, the former accordance with the rules and of the bank. The proposal would permit OTS permitted a Federal savings regulations of the United States Postal a national bank or its operating association to acquire warrants as an Service (USPS) and to keep books and subsidiary to solicit loan customers, incidental power of its authority to records on it, which are subject to market loan products, assist persons in make secured loans for commercial, inspection by the USPS, separate from completing application forms and corporate, or business purposes under those of other banking operations. related documents to obtain a loan, HOLA and applied the same restrictions The OCC is proposing to amend originate and approve loans, make on exercising those warrants as applied § 7.1010 to also apply to Federal savings credit decisions regarding a loan to national banks.23 By amending associations, consistent with the application, and offer other lending- § 7.1006 to include Federal savings position taken in agency guidance.27 related services such as loan associations, the proposed rule would The OCC also proposes to replace the information and applications at a loan codify these interpretations to clarify words ‘‘operate a postal substation’’ production office without violating 12 this authority and to better provide with ‘‘provide postal services’’ because U.S.C. 36 and 12 U.S.C. 81, provided parity with national banks. the term ‘‘Postal substation’’ is no longer that ‘‘money’’ is not deemed to be ‘‘lent’’ National Bank Holding Collateral Stock used in USPS regulations. This change at that site within the meaning of as Nominee (§ 7.1009) in terminology would clarify that § 7.1003 and the site does not accept national banks and Federal savings deposits or pay withdrawals. This Current § 7.1009 permits a national associations may offer a limited menu of description of activities is not intended bank to transfer stock it has received as postal services and are not required to to alter the description of ‘‘money lent’’ collateral for a loan into the bank’s operate full-service post offices. in § 7.1003 nor affect the scope of name as nominee.24 The OCC believes activities that are permissible for a this provision is unnecessary and is National Bank Receipt of Stock From a national bank to perform at a non- proposing to delete it. The OCC permits Small Business Investment Company branch location. Rather, the OCC is a bank to perfect its security interests in (§ 7.1015) proposing this description to provide collateral under applicable State laws Fifteen U.S.C. 682(b)(1) permits a greater clarity to what activities a consistent with the Uniform national bank to invest in one or more national bank may conduct at a loan Commercial Code.25 In situations where small business investment companies production office. As a technical a bank holds stock as collateral, (SBICs) or in any entity established change, the OCC would redesignate typically one method to perfect that solely to invest in SBICs, provided that former paragraph (a) as paragraph (b) interest under State law is to list the the total amount of all SBIC investments and amend it to reference loan bank as nominee on the stock certificate. does not exceed five percent of the production activities instead of However, recent versions of the Uniform bank’s capital and surplus.28 Section 26 originating loans. Commercial Code provide other 7.1015 provides that a national bank potentially less burdensome methods to may purchase stock of a SBIC and Loan Agreement Providing for a perfect an interest in securities National Bank Share In Profits, Income, receive benefits of such stock collateral, for example, by obtaining ownership. This section further or Earnings or for Stock Warrants control over a brokerage account (§ 7.1006) provides that the receipt and retention holding the stock. Therefore, the OCC of a dividend from a SBIC in the form The OCC is proposing to amend believes that § 7.1009 is not necessary. of stock of a corporate borrower of the § 7.1006 to include Federal savings Removing this provision would SBIC is not a purchase of stock within associations. Section 7.1006 permits a 21 the meaning of 12 U.S.C. 24(Seventh). national bank to take as consideration 12 U.S.C. 1464(c)(2). The OCC is proposing to amend for a loan: (1) A share in the profit, 22 Unpublished letter from Jordan Luke, Gen. Couns., Federal Home Loan Bank Board (Dec. 19, § 7.1015 to provide that a national bank income, or earnings from a business 1988), available on Westlaw: 1988 WL 1022319 enterprise of a borrower or (2) a stock (O.T.S.). 27 The former OTS previously concluded that warrant issued by the business 23 Id. Federal savings associations are authorized to enterprise of a borrower provided the 24 See 12 U.S.C. 24(Seventh). operate a postal substation on premises. See OTS bank does not exercise the warrant. This 25 See OCC, Comptroller’s Handbook: Asset-Based Op. Acting Ch. Couns., Mar. 25, 1994. Lending at 21–22 (2017). 28 National banks also may invest in SBICs arrangement is known as an ‘‘equity 26 Primarily Articles 8 and 9, which have been pursuant to their community development substantively adopted by all U.S. jurisdictions. See investment authority See 12 U.S.C. 24(Eleventh) 20 61 FR 4849, 4851 (Feb. 9, 1996). https://www.uniformlaws.org/acts/ucc. and 12 CFR part 24.

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may invest in a SBIC or in any entity protections against credit, operational, operations of Federal savings established solely to invest in SBICs, and market risk and outlines the associations have evolved over the past and that purchasing stock in a SBIC is protections a bank should or must take two decades and those Federal savings one example of this type of investment. in specific circumstances.31 Section associations that issue independent This amendment would more closely 7.1016 further provides that the national undertakings are familiar with non- align § 7.1015 to 15 U.S.C. 682(b). In bank should possess operational letters of credit independent addition, the OCC is proposing to expertise that is commensurate with the undertakings and related supervisory amend § 7.1015 to provide that a sophistication of its independent expectations. Furthermore, the OCC national bank’s SBIC investments are undertaking activities. Finally, § 7.1016 expects national banks and Federal subject to appropriate capital requires a bank to accurately reflect its savings associations to have operational limitations. undertakings in its records. expertise commensurate with the Fifteen U.S.C. 682(b)(2) provides a Pursuant to § 160.50, a Federal sophistication of its letters of credit or Federal savings association with similar savings association may issue letters of independent undertaking activities.35 authority to invest in SBICs.29 This credit and may issue other independent The OCC believes that this expectation authority is codified in OCC regulations undertakings as are approved by the is sufficient to ensure that all OCC- at 12 CFR 160.30. To clarify this OCC, subject to the restrictions in supervised institutions properly authority, the OCC is proposing to add § 160.120. Section 160.120 contains evaluate the risks associated with these a reference to Federal savings provisions that are largely similar to the activities. For these reasons, the OCC association SBIC authority in § 7.1015 provisions applicable to national banks finds that the OCC approval and cross-reference to 12 CFR 160.30. in § 7.1016.32 However, §§ 160.50 and requirement for non-letter of credit The OCC also is proposing to amend 160.120 provide that, unless it is a letter independent undertakings issued by § 7.1015 to clarify that a national bank of credit, a Federal savings association Federal savings associations is no longer or Federal savings association may only may issue independent necessary. invest in a SBIC that is either (1) already undertakings that have been approved The OCC also is proposing to clarify organized and has obtained a license by the OCC. The OTS explained when that Federal branches and agencies of from the Small Business it updated its regulation that Federal foreign banks may issue letters of credit Administration, or (2) in the process of savings associations were not and other independent undertakings, being organized. The OCC has traditionally involved in international consistent with the conditions outlined previously interpreted this authority to banking transactions, which utilized in § 7.1016.36 Finally, the OCC is permit a national bank to invest in a these independent undertakings, as proposing technical changes to the SBIC that is in the process of being were national banks.33 The OTS stated footnote to reflect updates to the laws organized.30 that the approval requirement provided and rules of practice cited. ‘‘the appropriate balance between giving National Bank Participation in Financial Letters of Credit and Independent thrifts greater flexibility to potentially Literacy Programs (§ 7.1021) Undertakings (§ 7.1016) engage in new types of transactions The OCC proposes to amend 12 CFR while at the same time ensuring that Twelve CFR 7.1021 provides that a 7.1016, which provides that a national thrifts have properly evaluated the risks national bank may participate in a bank may issue letters of credit and posed by a particular transaction financial literacy program on the other independent undertakings to consistent with prudent banking premises of, or at a facility used by, a customers, to include Federal savings practice.’’ 34 school. Section 7.1021 also provides associations. Section 7.1016 provides The OCC is proposing to amend that the school premises or facility will that a national bank entering into an § 7.1016 to apply it to Federal savings not be considered a branch of the bank independent undertaking should not associations, and to remove §§ 160.50 if: (1) The bank does not establish and expose itself to undue risk and also and 160.120, because of the similarities operate the school premises or facility outlines certain safety and soundness between the national bank and Federal on which the financial literacy program considerations for these activities. savings association independent is conducted; and (2) the principal Specifically, § 7.1016 provides that a undertaking regulations. As a result, a purposes of the program is educational. national bank should consider at a Federal savings association would no The OCC is proposing to amend minimum: (1) Whether the terms make longer be limited to issuing non-letter of § 7.1021 to clarify that the purpose of clear the independence of the credit independent undertakings this section is whether the facilities or undertaking; (2) whether the amount of approved by the OCC. The industry’s premises used for such a program would the undertaking is limited; (3) whether rules of practice have improved since be considered a branch of the national the undertaking is limited in duration the former OTS promulgated the bank under 12 U.S.C. 36. Facilities or or, if not, whether the bank has an regulation in 1996. In addition, the premises are only considered to be ability to end the undertaking or branches of a national bank if they are demand cash collateral from the 31 Specifically, § 7.1016(b)(2) provides that: (1) If established and operated by the national applicant; and (4) whether the the undertaking is to honor by delivery of an item bank. The proposal also would provide of value other than money, the bank should ensure that the OCC considers the undertaking will be collateralized or that market fluctuations affecting the value of the include a reimbursement right. Section item will not cause the bank to assume undue establishment and operation in this 7.1016 also provides that certain market risk; (2) if the undertaking provides for automatic renewal, the terms for renewal should be 35 undertakings require particular 12 CFR 7.1016(b)(3) and 12 CFR 160.120(b)(3). consistent with the bank’s ability to make any 36 Section 4(b) of the International Banking Act, necessary credit assessments prior to renewal; and 12 U.S.C. 3102(b) (Pub. L. 95–369) provides that the 29 As with national banks, Federal savings (3) if a bank issues an undertaking for its own operations of a foreign bank at a Federal branch or associations also may invest in SBICs pursuant to account, the underlying transaction for which it is agency shall be conducted with the same rights and their community development investment issued must be within the bank’s authority and privileges as a national bank at the same location authority. See 12 U.S.C. 1464(c)(4)(B) and 12 CFR must comply with any safety and soundness and shall be subject to all the same duties, 5.59 (Service corporations of Federal savings requirements applicable to that transaction. restrictions, penalties, liabilities, conditions, and associations). 32 See 61 FR 50951, 50958 (Sept. 30, 1996). limitations that would apply under the National 30 See OCC Interpretive Letter No. 832 (June 18, 33 Id. Bank Act to a national bank doing business at the 1998). 34 Id. same location. See also 12 CFR 28.13.

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context on a case by case basis, National Banks’ Authority To Buy and Federal savings association to engage in considering the facts and circumstances. Sell Exchange, Coin, And Bullion loan equivalent transactions pursuant to However, the OCC has previously (§ 7.1022) 12 U.S.C. 1464,40 and the former OTS 37 permitted a Federal savings association determined that whether a financial Federal Savings Associations, to participate in certain transactions in literacy program is a branch under Prohibition on Industrial or Commercial section 36 may be evaluated under the order to receive tax credits and other tax Metal Dealing or Investing (§ 7.1023) 41 safe harbor test for messenger services benefits. The OCC is proposing to The OCC also is proposing a technical established by third parties set forth in codify and clarify these interpretations change to §§ 7.1022 and 7.1023. Section § 7.1012(c)(2) and that a premises or of 12 U.S.C. 24(Seventh) and 1464 in 7.1022 prohibits a national bank from new § 7.1025.42 facility used for a school savings acquiring or selling industrial or Proposed § 7.1025(a) would permit a program is clearly established by a third commercial metal for purposes of national bank and Federal savings party if it meets this safe harbor test. dealing or investing. Section 7.1022 association to engage in a TEF The proposal would codify this excludes industrial and commercial transaction pursuant to 12 U.S.C. interpretation by providing that a metals from the national bank authority 24(Seventh) and 1464 if the transaction premises is not a branch of the national to ‘‘buy and sell exchange, coin, and is the functional equivalent of a loan, as bank if the safe harbor test in bullion.’’ Section 7.1023 similarly provided in proposed paragraph (c), and § 7.1012(c)(2) applicable to messenger prohibits a Federal savings association if a TEF transaction satisfies the services established by third parties is from dealing or investing in industrial requirements of proposed paragraph (d). satisfied and that the factor discussed in or commercial metal. Both sections Proposed § 7.1025(b) would define a § 7.1012(c)(2)(i), regarding whether the require a national bank and a Federal ‘‘tax equity finance transaction’’ as a bank employs the person who provide savings association to dispose of any transaction in which a national bank or the service, can be met if bank employee industrial or commercial metal held as Federal savings association provides participation in the financial literacy a result of dealing or investing in that equity financing to fund a project that program consists of managing the metal as soon as practicable, but not generates tax credits and other tax program or conducting or engaging in later than one year from the effective benefits and the use of an equity-based financial education activities provided date of the regulation. The OCC may structure allows the transfer of those the school or other community grant up to four separate one-year credits to the bank or savings organization retains control over the extensions if the bank makes a good association. Paragraph (b) also would program and over the premises or faith effort to dispose of the metal and define ‘‘capital and surplus’’ by cross- facilities at which the program is held. the retention of the metal for an referencing to its definition in the OCC’s additional year is not inconsistent with lending limit rule, 12 CFR 32.43 As The OCC believes that this should the safe and sound operation of the defined in the lending limit rule, for provide clarity with respect to the bank. The OCC is proposing a technical qualifying community banking meaning of ‘‘establish and operate’’ in change to both sections to replace the organizations that have elected to use § 7.1021. words ‘‘one year from the effective date the community bank leverage ratio Consistent with current practice, the of this regulation’’ with the actual framework, as set forth under the OCC’s OCC also is expanding the scope of effective date of that final rule, April 1, Capital Adequacy Standards at 12 CFR financial literacy programs beyond 2018. part 3, ‘‘capital and surplus’’ means a schools to encompass other community- qualifying community banking Tax Equity Finance Transactions (New organization’s tier 1 capital, as used based organizations, such as non-profit § 7.1025) organizations, that provide financial under 12 CFR 3.12, plus a qualifying literacy programs. In addition, the OCC The OCC and the courts have long community banking organization’s is moving the definition of financial held that a national bank may use its 12 allowance for loan and lease losses or literacy program to the beginning of the U.S.C. 24(Seventh) lending authority to adjusted allowances for credit losses, as section to clarify that, while a financial engage in transactions that do not take applicable, as reported in the the form of a traditional loan to literacy program is a program for which Consolidated Reports of Condition and accommodate the demands of the the primary purpose is educational, this Income (Call Report). For all other market, provided the transaction is the national banks and Federal savings is not a factor in determining whether functional equivalent of a loan.38 The the premises or facility is a branch for associations, ‘‘capital and surplus’’ OCC has interpreted this authority to means a national bank’s or savings purposes of section 36. permit a national bank to engage in tax association’s tier 1 and tier 2 capital, The OCC is not adding Federal equity finance (TEF) transactions.39 calculated under the risk-based capital savings associations to this section Although the OCC has not previously standards applicable to the institution because they are not subject to the addressed the permissibility of TEF as reported in the Call Report, plus the branching requirements in section 36. transactions for a Federal savings However, the OCC notes that association, OCC regulations authorize a 40 12 CFR 160.41 (Leasing). participation in financial literacy 41 See, e.g., OTS Op. Ch. Couns. (Feb. 9, 2004) programs is a permissible activity for 38 See M & M Leasing Corp. v. Seattle First Nat’l (New Market Tax Credit Program) and OTS Op. Ch. Bank, 563 F.2d 1377 (9th Cir. 1977), cert. denied, Couns. (Nov. 10, 1994) (low-income housing tax both national banks and Federal savings 436 U.S. 956 (1978). See also OCC Interpretive credit partnership). associations. Letter No. 1048 (Dec. 21, 2005); Corporate Decision 42 A national bank or Federal savings association 99–07 (March 26, 1999); Corporate Decision 98–17 may be able to participate in TEF transactions (March 27, 1998); Interpretive Letter No. 867 (June under an alternative authority, including 1, 1999). community development and public welfare 39 See OCC Interpretive Letter No. 1048 (Dec. 21, investment authority under 12 U.S.C. 24(Eleventh) 2005), OCC Interpretive Letter No. 1139 (Nov. 13, and 12 CFR 24. 2013), OCC Interpretive Letter No. 1141 (Apr. 22, 43 The OCC recently amended the definition of 2014). See also 26 U.S.C. 48 (energy ITC) and 26 ‘‘capital and surplus’’ in 12 CFR 32.2 in its recent 37 See OCC Interpretive Letter No. 839 (August 3, U.S.C. 45 (energy PTC). Internal Revenue Service community bank leverage ratio rule. See 84 FR 1998). (IRS) rules govern tax credit availability. 61776 (November 13, 2019).

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balance of a national bank’s or Federal property under 12 U.S.C. 29, and written approval of a written request by savings association’s allowance for loan acquisition of interests in real estate the national bank or Federal savings and lease losses or adjusted allowances incidental to the provision of financing association to exceed the five percent for credit losses, as applicable, not is not inconsistent with 12 U.S.C. 29. limit, that a higher aggregate limit will included in the bank’s or savings Fifth, the national bank or Federal not pose an unreasonable risk to the association’s tier 2 capital, for purposes savings association must use national bank or Federal savings of the calculation of risk-based capital, underwriting and credit approval association and that the tax equity as reported in the national bank’s or criteria and standards that are finance transactions in the national savings association’s Call Report. substantially equivalent to the bank’s or Federal savings association’s Under proposed paragraph (c), a TEF underwriting and credit approval portfolio will not be conducted in an transaction would qualify as the criteria and standards used for a unsafe or unsound manner. In no case functional equivalent of a loan if it traditional commercial loan. To comply may a bank’s or FSA’s total dollar meets eight requirements that derive with this requirement, the documents amount of TEF transactions exceed from OCC interpretations. First, the TEF governing the TEF transaction should fifteen percent of its capital and surplus. transaction structure must be necessary contain terms and conditions equivalent As provided for public welfare for making the tax credits and other tax to those found in documents governing investments under 12 U.S.C. benefits available to the national bank or typical lending relationships and 24(Eleventh) and 12 CFR 24, a national Federal savings association. The OCC transactions. bank is generally subject to a five requests comment on whether national Sixth, the national bank or Federal percent aggregate investment limit and banks or Federal savings associations savings association must be a passive this limit encourages a national bank to routinely obtain legal opinions investor in the transaction and must be maintain appropriate risk regarding the availability of tax credits unable to direct the affairs of the project diversification.44 The OCC specifically in connection with these types of company. This means that the national requests comment on whether the OCC finance transactions. bank or Federal savings association should use an alternate measure when Second, the TEF transaction must be would not be able to direct day-to-day calculating the aggregate investment of limited tenure and not indefinite. operations of the project. However, the limit and whether the proposed five Under this requirement, a national bank OCC would not consider temporary percent aggregate investment limit is or Federal savings association would management activities in the context of appropriate. need to be able to achieve its targeted foreclosure or similar proceedings as Third, the national bank or Federal return in a reasonable time, and the TEF violating this requirement. savings association has provided written transaction would need to have a Seventh, the national bank or Federal notification to the OCC prior to engaging defined termination point. A national savings association must appropriately in each TEF transaction that includes its bank or Federal savings association account for the transaction initially and evaluation of the risks posed by the could satisfy this requirement if the TEF on an ongoing basis and document transaction. transaction will terminate within a contemporaneously its accounting Fourth, the national bank or Federal reasonable time of the transaction’s assessment and conclusion. Although savings association can identify, initiation or if a project sponsor has an TEF transactions can be the functional measure, monitor, and control the option to purchase a national bank’s or equivalent of loans pursuant to a associated risks of its tax equity finance Federal savings association’s interest at national bank’s or Federal savings transaction activities individually and or near fair market value. The national association’s lending authority, the as a whole on an ongoing basis to ensure bank or Federal savings association accounting treatment of tax equity that it conducts such activities in a safe cannot control whether it retains the investments may differ from being a and sound manner. interest indefinitely. The proposed rule loan. Proposed paragraph (e) would provide would permit a national bank or Federal Proposed paragraph (d) would that the TEF transaction must be subject savings association to retain a limited provide that a national bank or Federal to the substantive legal requirements of investment interest if that interest is savings association only could engage in a loan, including the lending limits required by law to obtain continuing tax TEF transactions if it meets the prescribed by 12 U.S.C. 84, as benefits from the TEF transaction. following four additional requirements. implemented by 12 CFR 32, and, if the Third, the tax benefits and other First, the national bank or Federal active investor or project sponsor of the payments received by the national bank savings association cannot control the transaction is an affiliate of the national or Federal savings association from the sale of energy, if any, from the project. bank or Federal savings association, the TEF transaction must repay the To satisfy this requirement, a national restrictions on transactions with investment and provide an implied rate bank or Federal savings association affiliates prescribed by 12 U.S.C. 371c of return. As a result of this proposed could enter into a long-term contract and 371c–1, as implemented by 12 CFR requirement, the national bank’s or with creditworthy counterparties to sell 223. If a national bank or Federal Federal savings association’s energy from the project, as articulated in savings association is relying on its underwriting could not place undue OCC Interpretive Letter 1139, or have lending authority to participate in a TEF reliance on the value of any residual the project sponsor bear responsibility transaction, the TEF transaction would stake in the project and the proceeds of for selling generated power into the be subject to regulatory requirements disposition following the expiration of energy market so long as those sales are applicable to loans, including any the tax credits’ compliance period. stabilized by a hedge contract that applicable legal lending limits and Fourth, the national bank or Federal provides reasonable price and cash flow affiliate transaction restrictions to the savings association must not rely on certainty, as articulated in OCC extent applicable. However, the appreciation of value in the project or Interpretive Letter 1141. regulatory capital treatment of a property rights underlying the project Second, the national bank or Federal national bank or Federal savings for repayment. As discussed in OCC savings association must limit the total association’s participation in a TEF Interpretive Letter 1139, wind turbines, dollar amount of TEF transactions to no transaction would be determined solar panels, and other ancillary more than five percent of its capital and equipment are not considered real surplus unless the OCC determines, by 44 12 U.S.C. 24(Eleventh); 12 CFR 24.4(a).

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according to the regulatory capital rule ended liability as a member of the allows the member to limit its potential (12 CFR part 3). payment system.47 This interpretive liability and, as a result, the risks of The OCC specifically requests letter also outlined the approval process membership in that payment system. To comment on whether the final rule for this membership. In a subsequent address these situations, the OCC is should prohibit a national bank or interpretive letter, the OCC modified the proposing to define ‘‘open-ended Federal savings association from process to remove the approval liability’’ as liability for operational entering into TEF transactions for requirement.48 To provide additional losses that is not capped under the rules projects involving residential clarity to national banks, the OCC is of the payment system and includes installation TEF transactions not proposing to add a new § 7.1026 to part indemnifications provided to third involving utility-scale standalone 7 that would codify the current process parties as a condition of membership in power-generation facilities. The OCC for joining a payment system. The OCC the payment system. For example, also requests comment on whether the also is proposing to apply this section national banks and Federal savings final rule should permit national banks to Federal savings associations to associations may provide open-ended or Federal savings associations to invest provide equal treatment to Federal indemnifications to Federal Reserve in TEF transactions involving detached savings associations. The OCC Banks as a condition of membership in single-family residences, multi-family continues to support national banks and particular payment systems.49 This residences, or non-utility commercial Federal savings associations performing proposed definition is consistent with buildings. Further, the OCC requests their critical roles in payment systems— the definition of open-ended liability in comment on whether national banks including as members and architects. OCC Interpretive Letter 1140. and Federal savings associations should The proposal reminds national banks Fourth, although memberships in have other contractual remedies and Federal savings associations of their payment systems expose national banks available before entering into a TEF responsibility for ensuring that payment and Federal savings associations to a transaction. For example, should the system membership is conducted in a variety of risks, OCC legal precedent final rule require national banks or safe and sound manner. only has addressed whether a national Federal savings associations to have the Definitions. Proposed § 7.1026(a) bank may assume open-ended liability option to replace the sponsor or would provide definitions for several for operational losses at the payment manager of a project under certain terms used throughout the proposed system. Thus, the OCC is proposing to conditions or be required to have new section. First, the proposal would define ‘‘operational loss’’ as a charge indemnifications for breaches of tax define ‘‘appropriate OCC supervisory resulting from sources other than representations or other legal risks? In office’’ as the OCC office that is defaults by other members of the the alternative, should a final rule responsible for the supervision of a payment system. Examples of these require a project sponsor or the national bank or Federal savings operational losses would be losses that sponsor’s parent to make or guarantee association, as described in subpart A of are due to: Employee misconduct, fraud, such an indemnification? The OCC also 12 CFR part 4. misjudgment, or human error; requests comment on whether national Second, because different payment management failure; information banks and Federal savings associations systems may use different terminology, systems failures; disruptions from are currently participating in TEF the OCC is proposing to define internal or external events that result in transactions through fund-based ‘‘member’’ to include a national bank or the degradation or failure of services structures, and, if not, whether national Federal savings association designated provided by the payment system; or banks and Federal savings associations as a ‘‘member,’’ a ‘‘participant,’’ or other payment or settlement delays, want to participate in TEF transactions similar role by a payment system, constrained liquidity, contagious through fund-based structures. Further, including by a payment system that disruptions, and resulting litigation. the OCC requests comment on whether requires the national bank or Federal These examples are listed in OCC there are additional issues related to savings association to share in Interpretive Letter 1140.50 The OCC fund-based structures and whether the operational losses or maintain reserves requests comment as to whether these final rule should include additional with the payment system to offset examples should be included in this safeguards related to fund-based potential liability for operational losses. definition. If these examples should be structures. The OCC requests comment on whether included, the OCC also requests Payment System Memberships (New the definition of ‘‘member’’ should comment as to whether the examples § 7.1026) include national banks and Federal listed are appropriate and whether the list is sufficiently comprehensive or Section 7.1026 Payment System savings associations who are indirect whether other examples should be Memberships. The OCC has long members of a payment system. Third, the rules of some payment included. recognized the authority of national systems may not place a cap on the Finally, the OCC recognizes that banks to become members of payment operational liability of its members, but payment systems transfer funds for a systems.45 Similarly, OTS precedent a member’s operational liability may be variety of purposes and in varying permits Federal savings associations to amounts. For example, wholesale join payment systems.46 In 2014, the capped in some other way. For example, payment systems typically process large OCC published a legal interpretive letter a jurisdiction could have a law that does dollar transfers while retail payment clarifying that national banks may join not permit open-ended liability. If that systems may process a higher volume of payment systems with approval from law applies to the payment system, it transactions at a lower average dollar the OCC even when the national bank could effectively cap a member’s figure.51 The OCC proposes to define would be exposed to potentially open- operational liability. In other situations, a member may negotiate a separate ‘‘payment system’’ in § 7.1026 to mean a ‘‘financial market utility’’ as defined 45 See, e.g., OCC Conditional Approval Letter No. agreement with a payment system that 220 (Dec. 2, 1996); OCC Interpretive Letter No. 993 (May 16, 1997). 47 OCC Interpretive Letter No. 1140 (Jan. 13, 49 Id. 46 See, e.g., 12 CFR 145.17; OTS Op. Ch. Couns. 2014). 50 OCC Interpretive Letter No. 1140. (Sept. 15, 1995); OTS Op. Ch. Couns. (Dec. 22, 48 OCC Interpretive Letter No. 1157 (Nov. 12, 51 FFIEC IT Examination Handbook, Retail 1995). 2017). Payment Systems at 2 (Apr. 2016).

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in 12 U.S.C. 5462(6), wherever it appropriate OCC supervisory office 30 believes a national bank or Federal operates. This definition would days prior to joining a payment system savings association must be able to therefore include payment systems that that would expose it to open-ended identify, evaluate, and control its risks operate either in the U.S. or in a foreign liability. If the payment system does not from membership in a particular jurisdiction. Section 5462(6) provides expose the national bank or Federal payment system both before joining the that ‘‘a financial market utility’’ means savings association to open-ended system and on an ongoing basis.55 ‘‘any person that manages or operates a liability, the proposed rule would Proposed § 7.1026(e) would require as a multilateral system for the purpose of require the national bank or Federal prerequisite to joining a payment system transferring, clearing, or settling savings association instead to provide and on a continual basis after joining payments, securities, or other financial after-the-fact written notice within 30 that the national bank or Federal savings transactions among financial days of becoming a member of the association: (1) Identify and evaluate the institutions or between financial payment system. The OCC believes risks posed by membership in the institutions and the person’’ with membership in a payment system that payment system, taking into account certain exclusions.52 but would exclude exposes members to open-ended whether the liability is limited, and (2) derivatives clearing organizations liability creates additional risks for measure, monitor, and control those registered under the Commodity national banks and Federal savings risks. To assist with these requirements Exchange Act and clearing agencies associations. Thus, the OCC believes in paragraph (e), national banks and registered under the Securities prior notice to the OCC is appropriate in Federal savings associations should Exchange Act of 1934, and foreign these situations.53 review the standards outlined in OCC organizations that would be considered Content of notice. Proposed Interpretive Letter 1140 and OCC a derivatives clearing organization or § 7.1026(d) would provide that all Banking Circular 235. The proposal also clearing agency were it operating in the notices filed under § 7.1026 must requires a national bank or Federal United States. The OCC requests include representations that the national savings association to notify the comment on whether to include a bank or Federal savings association has appropriate OCC supervisory office if its definition of payment system and, if so, complied with the safety and soundness ongoing risk management identifies a whether this definition and the three review required by proposed safety and soundness concern, such as exclusions listed are appropriate. The § 7.1026(e)(1) before joining the a material change to the bank’s or OCC also requests comment on whether payment system and will comply with savings association’s liability or the definition appropriately the safety and soundness review and the indemnification responsibilities, as soon encompasses both foreign and domestic notification requirements in proposed as that concern is identified and to take payment systems that national banks § 7.1026(e)(2) and (e)(3) after joining the appropriate actions to remediate the and Federal savings associations may system. For after-the-fact notices risk. The OCC requests comment on join, including whether the proposed pursuant to paragraph (c)(2), the whether to include any of the criteria language properly excludes foreign proposed rule would require a national outlined in OCC Interpretive Letter 1140 equivalents of U.S.-registered bank or Federal savings association to and OCC Banking Circular 235 related derivatives clearing organizations and include a representation that either the to the analysis of: (1) The payment U.S.-registered clearing agencies. rules of the payment system do not system and its membership criteria and Notice requirements. Proposed impose liability for operational losses (2) criteria for an effective risk § 7.1026(c) would require a national on members or that the national bank’s management program to the safety and or Federal savings association’s liability bank or Federal savings association to soundness requirements in paragraph for operational losses is limited by the provide written notice to the (e). rules of the payment system to specific The OCC recognizes that a national 52 and appropriate limits that do not Financial market utility ‘‘does not include: bank’s or Federal savings association’s designated contract markets, registered futures exceed the legal lending limit specified liability will vary from payment system associations, swap data repositories, and swap by 12 CFR part 32 or a lower limit execution facilities registered under the Commodity to payment system. For example, the established for the national bank or Exchange Act (7 U.S.C. 1 et seq.), or national rules of some payment systems may Federal savings association by the OCC. securities exchanges, national securities expose members to open-ended liability associations, alternative trading systems, security- Safety and soundness procedures. based swap data repositories, and swap execution The OCC relies upon a number of for operational losses but, in reality, the facilities registered under the Securities Exchange national bank’s or Federal savings Act of 1934 (15 U.S.C. 78a et seq.), solely by reason resources to communicate in detail its safety and soundness guidance for association’s liability is limited by of their providing facilities for comparison of data separately negotiated agreements, respecting the terms of settlement of securities or national bank and Federal savings futures transactions effected on such exchange or by association memberships in payment controlling laws of the jurisdiction, or means of any electronic system operated or systems.54 At a minimum, the OCC some other means. Therefore, the controlled by such entities, provided that the proposal also would permit a national exclusions in this clause apply only with respect to the activities that require the entity to be so 53 The proposed notice requirement would not bank or Federal savings association to registered’’ nor ‘‘any broker, dealer, transfer agent, apply to existing payment system memberships. consider its open-ended liability to a or investment company, or any futures commission However, as explained below, the proposed rule particular payment system to be limited merchant, introducing broker, commodity trading would require national banks and Federal savings for purposes of the review required by advisor, or commodity pool operator, solely by associations to continuously inform the OCC of reason of functions performed by such institution changes to bank operations that would affect the proposed § 7.1026(e)(1) and (2) if the as part of brokerage, dealing, transfer agency, or institution’s risk profile. Thus, the OCC would be investment company activities, or solely by reason made aware of any payment system membership at (March 1990); OCC Banking Circular 235 (May 10, of acting on behalf of a financial market utility or a bank or savings association even though the 1989). a participant therein in connection with the specific timing and information required by this 55 For example, OCC Banking Circular 235 states furnishing by the financial market utility of services proposed rule would not apply to existing payment ‘‘Management of each national bank is responsible to its participants or the use of services of the systems memberships. for assessing risk in each payment, clearing, and financial market utility by its participants, provided 54 See, e.g., FFIEC IT Examination Handbook on settlement system in which the bank participates. that services performed by such institution do not Retail Payment Systems (Apr. 2016); FFIEC IT Management must adopt adequate policies, constitute critical risk management or processing Examination Handbook on Wholesale Payment procedures, and controls with respect to these functions of the financial market utility.’’ 12 U.S.C. Systems (July 2004); Comptroller’s Handbook: activities.’’ The OCC applied this Banking Circular 5462(6)(B). Payment Systems and Funds Transfer Activities to Federal savings associations on Oct. 1, 2014.

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bank or savings association obtains an of ‘‘branch’’ in 12 U.S.C. 36(j) to provide Establishment and Operation of a independent legal opinion prior to that ‘‘[t]he term ‘branch,’ as used in this Deposit Production Office by a National joining the payment system. That legal section, does not include an automated Bank (New § 7.1028/§ 7.4004) opinion must describe how the payment teller machine or a remote service Section 7.4004 provides that a system allocates liability for operational unit.’’ 57 Thus, the holding in Plant City national bank or its operating subsidiary losses and conclude the potential is legislatively overruled with respect to may engage in deposit production liability for the national bank or Federal any banking facility that is an ATM or activities at a site other than the main savings association is limited to specific an RSU. office or a branch of the bank, and and appropriate limits that do not further provides that a deposit exceed the legal lending limit specified As noted, the current definition of ‘‘RSU’’ in § 7.4003 requires an RSU to be production office (DPO) may solicit by 12 CFR part 32 or a lower limit deposits, provide information about automated.58 However, upon further established for the national bank or deposit products, and assist persons in consideration, the OCC believes that Federal savings association by the OCC. completing application forms and This legal opinion would enable the interpreting both the terms ATM and related documents to open a deposit OCC to verify that the liability of the RSU to require automation leads to account. Section 7.4004 specifically national bank or Federal savings incongruous results whereby a non- states that a DPO is not a branch so long association is limited even though the automated facility such as a drop box is as the site does not receive deposits, pay rules of the payment system do not considered a branch whereas an withdrawals, or make loans. It further provide any limits. If there are material automated facility such as an ATM is states that all deposit and withdrawal changes to the liability or not, despite a drop box functioning less transactions of a bank customer using a indemnification requirements of the like a full branch than an ATM. DPO must be performed by the national bank or Federal savings Furthermore, the OCC finds that drop customer, either in person at the main association after the bank or savings boxes have more in common with the office or a branch office of the bank or association joins the payment system, it types of devices already considered by mail, electronic transfer, or a similar can no longer rely on that legal opinion RSUs than with full-service branches method of transfer. Finally, this section to demonstrate that its liability is and therefore are more appropriately states that a national bank may use the limited and must notify the OCC and classified as RSUs. Accordingly, the services of persons not employed by the remediate its risks as described in bank in its deposit production activities. § 7.1026(e)(3). OCC is proposing to amend § 7.4003 to expand the definition of an RSU to As with § 7.4003, the OCC is proposing Establishment and Operation of a include either an automated or to move § 7.4004 to subpart A of part 7 Remote Service Unit by a National Bank unstaffed facility and to add drop boxes as new § 7.1028 to place it in the same subpart as other interpretations (New § 7.1027/§ 7.4003) to the list of RSU examples. This would regarding branching and non-branching Section 7.4003 provides that a bank allow unstaffed facilities, such as drop functions. This change would improve can establish and operate a remote boxes, to receive the same branching the organization of part 7. The OCC is service unit (RSU) pursuant to 12 U.S.C. treatment as ATMs and other devices proposing no other changes to this 24(Seventh). This section further states already classified as RSUs such as section except for a non-substantive that an RSU does not constitute a computers and automated loan change to its wording. branch under 12 U.S.C. 36(j) and is not machines. This amendment would subject to State geographic or provide national banks with a Combination of National Bank Loan operational restrictions or licensing significant degree of flexibility and Production Office, Deposit Production laws. Section 7.4003 defines an RSU as burden relief in the establishment of Office, and Remote Service Unit (New an automated facility, operated by a § 7.1029/§ 7.4005) drop boxes. We note that if the OCC customer of a bank, that conducts finalizes this amendment, it also will Section 7.4005 provides that a banking functions such as receiving location at which a national bank deposits, paying withdrawals, or amend 12 CFR 5.30(d) to remove ‘‘drop box’’ from the definition of ‘‘branch.’’ operates a loan production office (LPO), lending money. This section provides a DPO, and an RSU is not a ‘‘branch’’ examples of an RSU, specifically listing Because the OCC is proposing changes to this definition in another within the meaning of 12 U.S.C. 36(j) by an automated teller machine (ATMs), virtue of that combination of operations rulemaking,59 the OCC has not proposed automated loan machine, automated because none of these locations this technical amendment in this device for receiving deposits, personal individually constitutes a branch. computer, telephone, and other similar proposed rule. The OCC is proposing to add language electronic devices. Finally, this section The OCC also is proposing to move regarding the extent of the permissible notes that an RSU may be equipped § 7.4003 to subpart A of part 7 as new interaction between bank personnel and with a telephone or tele-video device § 7.1027. This change would place it in the RSU at a facility that combines a that allows contact with bank personnel. the same subpart as other loan production office or a deposit The OCC has historically treated drop interpretations regarding branching and production office with an RSU. The boxes as branches based on the 1969 non-branching functions, thereby proposed addition provides that an RSU Supreme Court case First National Bank improving the organization of part 7. at a combined location must be in Plant City, Florida v. Dickinson, 396 primarily operated by the customer with U.S. 122 (1969) (Plant City). In Plant 57 Economic Growth and Regulatory Paperwork at most delimited assistance from bank City, the Supreme Court ruled that a Reduction Act of 1996 (EGRPRA), Public Law 104– personnel. This language is based on drop box operated by a national bank 208, 110 Stat. 3009, Section 2204 (1996). published OCC precedent.60 constituted a branch under 12 U.S.C. 58 In 1997, the OCC issued an interpretive letter As with §§ 7.4003 and 7.4004, the 36(j) because it was a place ‘‘at which which explained that the OCC did not view a drop OCC also is proposing to move § 7.4005 deposits are received.’’ 56 However, in box to be an RSU because they are not automated. OCC Interpretive Letter No. 772 (March 6, 1997). to subpart A of part 7, as new § 7.1029. 1996, Congress amended the definition 59 See Articles of Association, Charters, and Bylaw Amendments (Forms), Comptroller’s 60 OCC Interpretive Letter No. 1165 (June 28, 56 Plant City, 396 U.S. 122 at 137. Licensing Manual (June 19, 2017). 2019).

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This change would place this section in consistent with prior OCC transparency and consistency among the same subpart as other interpretations that have, in connection institutions. interpretations regarding branching and with affirming the permissibility of a • Customer-driven. The proposed rule non-branching functions. This change derivatives activity in which a bank has would define ‘‘customer-driven’’ to would improve the organization of part sought to engage, directed the bank to mean a transaction entered into for a 7. notify its EIC of the details of the bank’s customer’s valid and independent business and management practices for business purpose. This approach is Permissible Derivatives Activities for performing that particular derivatives consistent with OCC interpretive National Banks (New § 7.1030) activity as a financial intermediary. As letters.62 Certain derivatives activities are with all permissible activities within the This focus on the customer permissible for national banks under 12 business of banking, derivative activities recognizes that a number of derivatives U.S.C. 24(Seventh). A national bank are subject to all other applicable laws activities are permissible for a national may engage in derivatives activities that and regulations, as well as prudential bank because the bank is acting as a reference certain rates or assets that are safety and soundness standards. financial intermediary for the customer. permissible for bank investment. In The proposal is intended to describe A customer-driven transaction would addition, a national bank may use the derivatives activities that are legally not include a transaction entered into derivatives to hedge the risks of its permissible for a national bank, for the purpose of speculating in permissible banking activities. Finally, including activities that require a bank derivative, currency, commodity, or with prior notification to the bank’s to provide notice to the OCC prior to security prices.63 Similarly, a customer- examiner-in-charge (EIC), a national engaging in the activity. Providing this driven transaction would not include a bank may engage as a financial information in a regulation is expected transaction the principal purpose of intermediary in customer-driven to promote clarity and transparency which is to deliver to a national bank derivatives activities. Congress has and, ultimately, reduce compliance assets that the national bank could not recognized national banks’ authority to burden. These proposed changes also invest in directly. engage in derivatives activities in can help ensure consistent practices • Perfectly-matched. OCC various statutes.61 across institutions when a national bank interpretive letters have permitted The OCC is proposing to issue a new seeks to commence or expand national banks to engage in various derivatives activities. OCC rules for § 7.1030 addressing derivatives customer-driven, cash settled Federal savings associations are activities permissible for national banks. derivatives transactions if they are currently set forth at 12 CFR 163.172. This new section would incorporate and perfectly-matched. In determining that streamline the framework in OCC This rule provides that a Federal savings association may engage in a transaction national banks may engage in perfectly- interpretive letters discussing bank- matched derivatives, the OCC found it permissible derivatives activities. The involving a financial derivative provided that the savings association is material that the bank would be exposed proposed rule addresses five functional 64 authorized to invest in the assets only to credit risk. OCC interpretive categories of permissible derivatives letters have typically used ‘‘perfectly- activities: (1) Derivatives referencing underlying the derivative, the transaction is safe and sound, and the matched’’ to describe two back-to-back underlyings a national bank may transactions in which all economic purchase directly as an investment; (2) association’s board of directors and management satisfy certain prudential terms match and in which the bank’s derivatives with any underlying to primary exposure is credit risk because hedge the risks arising from bank- requirements. It also states that, in the matched transactions offset one permissible activities; (3) derivatives general, a Federal savings association another’s market risk.65 The OCC with any underlying that are customer- should engage in a financial derivative proposes to incorporate a substantially driven, cash-settled and either perfectly- transaction only to reduce its risk similar definition into the rule, with matched or portfolio-hedged; (4) exposure. Because Federal savings certain clarifications. Specifically, the derivatives with any underlying that are associations have different statutory customer-driven and physically-settled authority for derivative activities, the OCC proposes to define perfectly- by transitory title transfer; and (5) OCC has not proposed to include matched to mean two back-to-back derivatives with any underlying that are Federal savings associations in § 7.1030. transactions that offset risk with respect However, the OCC is considering customer-driven, physically-settled to all economic terms (e.g., amount, moving § 163.172 to part 7 so that the (other than by transitory title transfer), maturity, duration, and underlying). derivative rules for both charters are and physically-hedged. Consistent with OCC interpretive letters, located in the same part. This move The proposed rule also would include this definition would allow transactions would better organize OCC rules. The a requirement that a national bank to be considered ‘‘perfectly-matched’’ specifics of the proposal are discussed provide written notice to its EIC prior to despite a difference in price between below. two derivatives when that difference engaging in certain derivatives Authority. Paragraph (a) of new activities. This requirement would be § 7.1030 would specify that the section 62 E.g., OCC Interpretive Letter No. 1160 (Aug. 22, is issued pursuant to 12 U.S.C. 24 61 See, e.g., 12 U.S.C. 84 (incorporating credit 2018). exposure from derivatives into the legal lending (Seventh). Paragraph (a) would further 63 OCC interpretations have specified that limit); Gramm-Leach-Bliley Act, Pub. L. 106–102, specify that a national bank may only customer-driven derivatives transactions do not 113 Stat. 1338, section 206(a)(6) (defining engage in derivatives transactions in include transactions entered into for the purpose of ‘‘identified banking product’’ to include any swap accordance with the requirements of speculating in the underlying commodity or agreement except an equity swap with a retail security prices. See e.g., OCC Interpretive Letter No. customer); 12 U.S.C. 371c (defining ‘‘covered this section. 1033 (Jun. 14, 2015); OCC Interpretive Letter No. transaction’’ between a bank and its affiliates to Definitions. In paragraph (b), the 892 (September 13, 2000); OCC Interpretive Letter include a derivative transaction); Dodd-Frank Wall proposed rule incorporates several No. 684 (Aug. 4, 1995); OCC No-Objection Letter Street Reform and Consumer Protection Act, Pub. terms that are commonly used in OCC 90–1 (Feb. 16, 1990). L. 111–203, 124 Stat. 1376, (Dodd-Frank Act) 64 See e.g., OCC No-Objection Letter No. 87–5 (Jul. section 716 (15 U.S.C. 8305); Dodd-Frank Act derivatives interpretive letters. The 20, 1987). section 731 (7 U.S.C. 6s); Dodd-Frank Act section proposed rule also defines certain terms 65 See e.g., OCC Interpretive Letter No. 1039 764 (15 U.S.C. 78o–10). for the first time to promote (Sept. 13, 2005).

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reflects the bank’s intermediation fee (in customer-driven derivatives with title transfer does not entail a bank the form of a spread).66 securities (i.e., taking ownership of the taking physical possession of a • Portfolio-hedged. OCC interpretive relevant security to hedge the customer- commodity.75 letters have discussed the permissibility driven transaction), including securities • Underlying. OCC interpretive letters of portfolio hedging with respect to that a national bank could not purchase have long analyzed derivatives specified types of underlyings. These as an investment under 12 CFR part 1.70 transactions based on the underlying letters have typically used ‘‘portfolio- In this context, consistent with prior reference asset, rate, obligation, index, hedged’’ to describe the practice of OCC interpretations,71 ‘‘physical etc. The OCC proposes to define hedging the net residual risk position in hedging’’ involving securities would ‘‘underlying’’ as the reference asset, rate, a portfolio of positions.67 This method include taking ownership of a security, obligation, or index on which the of hedging can reduce transactional by book-entry or otherwise. Section payment obligation(s) between costs and operational risks because 7.1030(e) of the proposed rule includes counterparties to a derivatives fewer transactions need to be executed additional requirements applicable to transaction is based. relative to perfectly-matched hedging physical hedging activities.72 The OCC specifically requests (in which the bank must offset each • Physical settlement or physically- comment on whether the proposed transaction on an individual basis).68 settled. OCC interpretive letters definitions accurately reflect the terms The OCC proposes to incorporate into recognize the permissibility of physical used in OCC interpretive letters and the rule a substantially similar settlement conducted as part of a whether any of these terms, in particular definition with certain clarifications. national bank’s derivatives financial ‘‘perfectly-matched’’ and ‘‘portfolio- Specifically, the OCC proposes to define intermediation activities in limited hedged,’’ would benefit from further ‘‘portfolio-hedged’’ to mean that a circumstances. Under existing clarification. Further, the OCC requests portfolio of transactions is hedged based interpretive letters and the proposed comment on whether national banks on net unmatched positions or rule, engaging in physical settlement would be able to determine effectively exposures in the portfolio. The with respect to an underlying would which activities meet these definitions proposed definition refers to unmatched entail providing a notice to the OCC.73 and, specifically, whether the OCC ‘‘positions or exposures’’ to clarify that The OCC proposes to define ‘‘physical should elaborate on the characteristics hedging on a portfolio basis may involve settlement’’ and ‘‘physically-settled’’ to of transactions that will be considered hedging based on various risk exposures mean a transaction is settled by perfectly-matched or portfolio-hedged. with different instruments in accepting title to or acquiring ownership The OCC requests comment on whether accordance with applicable policies and of the underlying asset (whether a it should include a definition of the procedures and risk limits of the bank. commodity, security, or emissions term ‘‘derivative’’ in the final rule and • Physical hedging or physically- allowance). Physical settlement stands whether a definition of this term would hedged. The OCC has issued guidance in contrast to cash-settled transactions. be necessary to appropriately scope the recognizing that it is permissible for In cash-settled transactions, proposed provision and whether any national banks to utilize physical counterparties do not exchange the definition would be workable in positions, including physical positions underlying assets. Rather, they exchange practice. To the extent a definition of in certain commodities, to hedge their cash payments based on the price of the ‘‘derivative’’ is necessary, the OCC customer-driven derivatives activities underlying. For purposes of the suggests that it be defined as follows: under certain conditions.69 The OCC proposed rule, physical settlement A contract, agreement, swap, warrant, proposes to define ‘‘physical hedging’’ includes transitory title transfer, which note, or option that is based, in whole and ‘‘physically-hedged’’ to mean is discussed below. or in part, on the value of, any interest holding title to or acquiring ownership • Transitory title transfer. OCC in, or any quantitative measure or the of an asset (for example, by warehouse interpretive letters recognize the occurrence of any event relating to, one receipt or book entry) to manage the permissibility of settling a derivatives or more commodities, securities, risks arising out of permissible transaction by transitory title transfer of currencies, interest or other rates, derivatives transactions. This definition the underlying asset in limited indexes, or other assets, except a is intended to be consistent with the circumstances. Transitory title transfer derivative does not include a: description of commodities physical is a means of physical settlement in (1) Retail forex transaction, as defined hedging activities that the OCC has which a counterparty only briefly holds in 12 CFR 48.2; identified as permissible in prior title to the underlying asset. Consistent (2) Security; interpretive letters and in OCC Bulletin with prior OCC interpretive letters,74 the (3) Loan or loan participation; 2015–35. This definition would also (4) Deposit; OCC proposes to define ‘‘transitory title (5) Banker’s acceptance; or apply to physical hedging of customer- transfer’’ to mean a transaction is settled driven derivatives referencing (6) Letter of credit. by accepting and immediately The OCC requests comment on this securities. As described further below, relinquishing title to an asset. Transitory OCC interpretive letters have recognized possible definition. Permissible Derivatives Activities the permissibility of physical hedging of 70 See, e.g., OCC Interpretive Letter No. 1090 (Oct. Generally. The proposed rule would 25, 2007); OCC Interpretive Letter No. 1064 (Jul. 13, address five categories of permissible 66 OCC Interpretive Letter No. 1110 (Jan. 30, 2006); OCC Interpretive Letter No. 1018 (Feb. 10, 2009). 2005); OCC Interpretive Letter No. 935; OCC derivatives activities. These categories 67 See e.g., OCC Interpretive Letter No. 1073 (Oct. Interpretive Letter No. 892. are discussed below. 19, 2006); OCC Interpretive Letter No. 1060 (Apr. 71 See, e.g., OCC Interpretive Letter No. 1090; 26, 2006). OCC Interpretive Letter No. 1064; OCC Interpretive 75 See, e.g., OCC Interpretive Letter No. 1073; 68 See e.g., OCC Interpretive Letter No. 1073; OCC Letter No. 1018; OCC Interpretive Letter No. 935; OCC Interpretive Letter No. 1060; OCC Interpretive Interpretive Letter No. 1060. OCC Interpretive Letter No. 892. Letter No. 1025 (Apr. 25, 2005); OCC Interpretive 69 OCC Bulletin 2015–35, Quantitative Limits on 72 See proposed rule § 7.1030(e). Letter No. 962; OCC Interpretive Letter No. 684. See Physical Commodity Transactions (Aug. 4, 2015); 73 See, e.g., OCC Interpretive Letter No. 1040; also 81 FR 96355 (Dec. 30, 2016) (explaining see also OCC Interpretive Letter No. 1040 (Sept. 15, OCC Interpretive Letter No. 935; OCC Interpretive ‘‘transitory title transfer typically does not entail 2005); OCC Interpretive Letter No. 935 (May 14, Letter No. 684; OCC Interpretive Letter No. 632. physical possession of a commodity; the ownership 2002); OCC Interpretive Letter No. 684; OCC 74 See, e.g., OCC Interpretive Letter No. 962 (Apr. occurs solely to facilitate the underlying transaction Interpretive Letter No. 632 (Jun. 30, 1993). 21, 2003). and lasts only for a moment in time.’’).

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• Derivatives Referencing risks.79 The OCC has long recognized • Derivatives Financial Underlyings in which a National Bank that a national bank may hedge its risk Intermediation for Customers. May Invest Directly. OCC interpretive using derivatives on underlyings that a OCC interpretive letters have long letters have recognized that national national bank would be permitted to recognized that a national bank may act banks may engage in derivatives invest in directly. For example, a as a financial intermediary in customer- activities where the derivative national bank may use futures contracts driven 85 derivatives transactions on a references assets that a national bank on exchange, coin, or bullion to hedge variety of reference assets as part of the could purchase directly as an activities conducted pursuant to a business of banking.86 These letters investment.76 For example, to manage national bank’s statutory authority to have recognized national banks’ its investment portfolio, a national bank buy and sell exchange, coin, or bullion. authority to enter into cash-settled, may use derivatives tied to interest Similarly, a national bank may use customer-driven derivatives rates, foreign exchange and currency, futures to hedge against the risk of loss transactions both on a perfectly- 87 88 credit, precious metals, and investment due to the interest rate fluctuations matched and portfolio-hedged basis. securities. Section 7.1030(c)(1) of the inherent in bank loan operations, U.S. The OCC has explained that these proposed rule would reflect this Treasury Bills, and certificates of derivatives activities ‘‘are, at their authority by specifying that a national deposit. essence, modern forms of financial • bank may engage in derivatives Hedging with Derivatives intermediation’’ because ‘‘through transactions with payments based on Referencing Underlyings in which a intermediated exchanges of payments, underlyings that a national bank is National Bank May Not Invest Directly. banks facilitate the flow of funds within permitted to purchase directly as an The OCC also has recognized that a our economy and serve important investment. Paragraph (c)(1) would national bank may hedge the risks of financial risk management and other financial needs of bank customers.’’ 89 address only derivatives on underlyings bank-permissible activities using that a national bank would be permitted derivatives on underlyings in which a would not need to provide notice under the to purchase directly as principal. For national bank may not invest directly. For example, in OCC Interpretive Letter proposed rule because this activity could be example, an underlying that a national conducted under proposed rule § 7.1030(c)(1). See bank could hold only as a 896, the OCC recognized that a national proposed rule § 7.1030(c)(1), (d). nonconforming investment under 12 bank may purchase cash-settled options 85 A ‘‘customer-driven’’ transaction is one entered CFR part 1 or only in satisfaction of on commodity futures contracts to into for a customer’s valid and independent hedge the risk of a commodity that business purposes. See, e.g., OCC Interpretive Letter debts previously contracted would not No. 1160; OCC Interpretive Letter No. 892. This served as collateral on an agricultural definition is addressed in § 7.1030(b) of the be a permissible underlying under this 80 paragraph. loan. Similarly, the OCC has proposed rule. recognized that it is permissible for a 86 See, e.g., OCC Interpretive Letter No. 937 (Jun. • Hedging Bank-Permissible trust bank to hedge the market risk 27, 2002); OCC Interpretive Letter No. 892; No- Activities with Derivatives. associated with the fees it received from Objection Letter 87–5. 87 See, e.g., OCC Interpretive Letter No. 1110 Under 12 U.S.C. 24 (Seventh), a its investment advisory activities using (longevity indexes); OCC Interpretive Letter No. national bank may engage in activities equity derivatives.81 Likewise, the OCC 1101 (Jul. 7, 2008) (certain risk indexes); OCC that are part of, or incidental to, the has determined that a national bank Interpretive Letter No. 1089 (Oct. 15, 2007); business of banking. Risk management may purchase certain equity derivatives (specific property indexes); OCC Interpretive Letter No. 1081 (May 15, 2007) (specific property activities, such as hedging risks arising to hedge the risks of a deposit account indexes); OCC Interpretive Letter No. 1079 (Apr. 19, from bank activities, are part of the that paid interest based, in part, upon 2007) (inflation indexes); OCC Interpretive Letter business of banking.77 Entering into changes in the Standard & Poor’s 500 No. 1065 (Jul. 24, 2006) (petroleum products, deposit, loan, and other contracts with Composite Stock Index.82 The OCC also agricultural oils, grains and grain derivatives, seeds, fibers, foodstuffs, livestock/meat products, metals, customers and engaging in other bank- has recognized that it is permissible for wood products, plastics and fertilizer); OCC permissible activities involve risks that a national bank to use commodity Interpretive Letter No. 1063 (Jun. 1, 2006) (hogs, a bank must manage as part of the derivatives to hedge commodity price lean hogs, pork bellies, lumber, corrugated business of banking. A bank must risk associated with a production cardboard, and polystyrene); OCC Interpretive 83 Letter No. 1059 (Apr. 13, 2006) (old corrugated manage the risk of those activities to payment loan. cardboard #11, polypropylene: injection molding operate profitably and in a safe and The proposed rule would recognize a (copoly), polypropylene: all grades, Dow Jones AIG sound manner.78 A bank may engage in national bank’s authority to hedge bank- Commodity Index); OCC Interpretive Letter No. hedging activities to manage these permissible activities using derivatives 1056 (Mar. 29, 2006) (frozen concentrate orange juice, polypropylene); OCC Interpretive Letter No. on underlyings in which a bank could 1039 (crude oil, natural gas, heating oil, natural 76 See, e.g., OCC Interpretive Letter No. 494 (Dec. not invest directly. Section 7.1030(c)(2) gasoline, gasoline, unleaded gas, gasoil, diesel, jet 20, 1989); OCC Interpretive Letter No. 422 (Apr. 11, of the proposed rule would provide that fuel, jet-kerosene, residual fuel oil, naphtha, ethane, 1988); OCC No Objection Letter No. 86–13 (Aug. 8, a national bank may engage in propane, butane, isobutane, crack spreads, 1986). See also, ‘‘Report to Congress and the lightends, liquefied petroleum gases, natural gas Financial Stability Oversight Council Pursuant to derivatives transactions with any liquids, distillates, oil products, coal, emissions Section 620 of the Dodd-Frank Act’’ at 86–90 underlying to hedge the risks arising allowances, benzene, dairy, cattle, wheat, corn, (September 2016), available at https:// from bank-permissible activities after soybeans, soybean meal, soybean oil, cocoa, coffee, www.occ.treas.gov/publications-and-resources/ providing notice to its EIC.84 cotton, orange juice, sugar, paper, rubber, steel, publications/banker-education/files/pub-report-to- aluminum, zinc, lead, nickel, tin, cobalt, iridium, congress-sec-620-dodd-frank.pdf (Section 620 rhodium, freight, high density polyethylene 79 Report). See OCC Interpretive Letter No. 896 (Aug. 21, (plastic), ethanol, methanol, newsprint, paper 2000); OCC Interpretive Letter No. 892. 77 See Decision of the Office of the Comptroller (linerboard), pulp (kraft), and recovered paper 80 of the Currency on the Request by Chase Manhattan See OCC Interpretive Letter No. 896. (newsprint)). Bank, N.A. to Offer the Chase Market Index 81 See OCC Interpretive Letter No. 1037 (Aug. 9, 88 See, e.g., OCC Interpretive Letter No. 1073 Investment Deposit (1988) (MII Deposit); Investment 2005). (aluminum, nickel, lead, zinc, and tin); OCC Company Institute v. Ludwig, 884 F. Supp. 4 (D.D.C. 82 See MII Deposit. Interpretive Letter No. 1060 (coal); OCC Interpretive 1995) (upholding Comptroller’s decision that the 83 See OCC Interpretive Letter No. 1117 (May 19, Letter No. 1040 (emissions allowances); OCC hedged deposit in MII Deposit is a bank-permissible 2009). Interpretive Letter No. 937 (electricity). product that did not violate the Glass-Steagall Act). 84 In contrast, if a national bank engaged in 89 OCC Interpretive Letter No. 1110; OCC 78 See generally MII Deposit; OCC Interpretive hedging using derivatives on underlyings in which Interpretive Letter No. 1101; OCC Interpretive Letter Letter No. 892. a national bank could invest directly, the bank No. 1079.

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The OCC has also recognized in this provided that the national bank does not interpretive letters addressing context the permissibility of physical take physical delivery of any derivatives hedging or financial settlement by transitory title transfer.90 commodity by receipt of physical intermediation activities, proposed As described above, transitory title quantities of the commodity on bank § 7.1020(d) would require a national transfer is a particular means of physical premises and the physical hedging bank to provide written notice to its EIC settlement in which a counterparty only activities meet the requirements in prior to engaging in activity using briefly holds title to the underlying paragraph (e) of the proposed rule. As derivatives referencing assets that a asset. Transitory title transfer does not discussed below, a national bank would national bank could not invest in entail a bank taking physical possession need to provide a written notice to its directly. of a commodity.91 Further, the OCC has EIC before engaging in financial OCC Interpretive Letter 1160 recognized that a national bank may intermediation activities with contemplates that a bank would provide engage in customer-driven financial derivatives on underlyings in which a written notification to its EIC prior to intermediation derivatives activities that national bank could not invest directly. commencing a derivatives financial are physically-settled (other than by Relative to prior OCC interpretations, intermediation business for a reference transitory title transfer) and to the proposed rule would make fewer asset addressed in prior OCC physically hedge those derivatives in distinctions based on the particular interpretive letters. This process certain circumstances.92 OCC underlying or how the national bank replaced the no-objection process that interpretive letters have explained that hedges its derivatives financial was typically included in prior OCC physical delivery can help to reduce the intermediation activity. While prior interpretive letters.95 The proposal risk in customer-driven commodity interpretations typically analyzed both would require a national bank to derivatives transactions if the activity is the underlying and the bank’s method provide a notice to its EIC prior to conducted in accordance with safe and for hedging the customer-driven commencing a financial intermediation sound banking practices and would derivative (i.e., perfectly matched versus activity in derivatives on underlyings in achieve a more accurate and precise portfolio hedged), the proposal would which a national bank could not invest hedge than a cash-settled transaction.93 permit customer-driven, cash-settled directly or expanding its financial The OCC subsequently provided derivatives transactions on any intermediation activities to include a 96 guidance on safe and sound practices underlying, whether perfectly-matched new category of underlyings. with respect to physical hedges of or portfolio-hedged. The OCC In addition, OCC interpretive letters commodity-linked financial recognizes that financial intermediation have contemplated that a national bank transactions.94 in derivatives continues to evolve and would obtain a no-objection before The OCC proposes to incorporate and that the markets for derivatives on engaging in hedging activities using streamline the framework contained in underlyings that the OCC has not derivatives on underlyings in which a its interpretive letters addressing previously addressed may have national bank could not invest 97 derivatives financial intermediation sufficient liquidity and depth to allow a directly. The OCC is not proposing to activities in § 7.1030(c)(3) through (5). bank to conduct the activity as a incorporate an EIC no-objection in First, under the proposed rule, a financial intermediary. Similarly, the connection with these hedging national bank may engage in customer- OCC recognizes that these same factors activities, and the proposal would driven, cash-settled derivatives may allow a national bank to hedge its instead create a regulatory requirement transactions on any underlying on a customer-driven derivatives activities in to provide notice to the national bank’s perfectly-matched or portfolio-hedged evolving ways—whether by portfolio EIC for these hedging activities basis. hedging or physical hedging—consistent recognized in § 7.1030(c)(2) through the Second, the proposed rule would with conducting the activity as a proposed notice requirement in permit a national bank to engage in financial intermediary. §§ 7.1030(d)(1)(i)–(ii). The OCC expects customer-driven, perfectly-matched or As with any bank-permissible that transitioning from the no-objection portfolio-hedged derivatives activity, safety and soundness standards process for derivatives hedging transactions on any underlying that is apply to derivatives financial activities to the notice process will settled by transitory title transfer. intermediation activities. The proposal enhance prudential supervision of bank Third, the proposed rule would would include additional requirements derivatives activities by ensuring that permit physically settled and physically for physical hedging activities in banks evaluate the risks of the activities hedged transactions that are either § 7.1020(e). The OCC requests comment both at inception and on an ongoing perfectly-matched or portfolio-hedged, on whether the rule should reflect any basis. additional standards regarding the Under the proposed rule, the notice 90 See OCC Interpretive Letter No. 1073 underlyings that are permissible for procedures and requirements in (aluminum, nickel, lead, zinc, and tin); OCC financial intermediation in derivatives proposed § 7.1030(d)(2) would be the Interpretive Letter No. 1060 (coal); OCC Interpretive and how national banks may hedge same for hedging activities and financial Letter No. 1025 (electricity); Interpretive Letter No. these activities. For example, the OCC 962 (electricity). The term ‘‘transitory title transfer’’ intermediation activities. The proposed means accepting and instantaneously relinquishing requests comment on whether the rule would require the written notice to title to the commodity, as a party in a ‘‘chain of regulation should include additional include information that is substantially title’’ transfer. OCC Interpretive Letter No. 1025. language relating to the liquidity of the similar to the information that is 91 See, e.g., OCC Interpretive Letter No. 1060; market for permissible customer-driven discussed in Interpretive Letter 1160. OCC Interpretive Letter No. 684. See also 81 FR derivatives activities. 96355 (Dec. 30, 2016) (explaining ‘‘transitory title Specifically, the written notice must transfer typically does not entail physical Notice requirement. OCC possession of a commodity; the ownership occurs interpretations have often included a 95 See, e.g., OCC Interpretive Letter No. 1065. solely to facilitate the underlying transaction and process in which the national bank 96 National banks that have provided notice to or lasts only for a moment in time.’’). provides notice to its EIC about the received statements of no-objection from their EICs 92 See, e.g., OCC Interpretive Letter No. 1040; business and management practices the for particular derivatives activities consistent with OCC Interpretive Letter 892; OCC Interpretive Letter the process in OCC interpretive letters would not No. 684. bank will employ in performing the be required to submit new notices for those 93 E.g., OCC Interpretive Letter No. 684. derivatives activity as financial activities. 94 See OCC Bulletin 2015–35. intermediation. Consistent with prior 97 See OCC Interpretive Letter No. 896.

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include a detailed description of the submit written notice at least 30 days invest directly. Under the proposed proposed activity, including the before the national bank commences the rule, a national bank could engage in relevant underlying(s); the anticipated derivatives activity. The OCC physical hedging only if: (1) The start date of activity; and a detailed specifically requests comment on national bank holds the underlying description of the bank’s risk whether it is sufficiently clear when a solely to hedge risks arising from management system (policies, notice would be required and what derivatives transactions originated by processes, personnel, and control would constitute a ‘‘new category of customers for the customers’ valid and systems) for identifying, measuring, underlying.’’ Prior OCC interpretations independent business purposes; (2) the monitoring, and controlling the risks of have addressed several categories of physical hedging activities offer a cost- the activity. The proposed rule does not permissible underlyings for national effective means to hedge risks arising include the requirement from bank derivatives transactions.98 The from permissible banking activities; (3) Interpretive Letter 1160 that the bank OCC requests comments on whether the the national bank does not take submitting the notice identify an OCC regulation text should list these anticipatory or maintain residual interpretive letter confirming the categories. If the regulation were to list positions in the underlying except as permissibility of transactions involving these categories, the OCC requests necessary for the orderly establishment the underlying and hedging activity. If comment on whether the regulation or unwinding of a hedging position; and the proposed rule is finalized, should specify that any new derivatives (4) the national bank does not acquire derivatives hedging and financial activities not falling within one of the equity securities for hedging purposes intermediation activities would be specified categories also requires notice. that constitute more than five percent of conducted pursuant to the regulation, The OCC believes that the proposed a class of voting securities of any without reference to prior OCC notice process will provide an efficient issuer.100 interpretations. Therefore, the OCC does notice standard for national banks Consistent with OCC interpretive not believe it would be necessary for a engaging in derivatives activities. The letters and guidance concerning national bank to identify a prior OCC notice requirement is expected to physical hedging with commodities in interpretation. The OCC believes that enhance supervision by providing bank which a national bank could not invest this framework could ultimately reduce supervisors with comprehensive, up-to- directly,101 the proposed rule would the compliance burden associated with date information on the activities in impose additional requirements on national bank derivatives activities. which the bank is engaged. This physical hedging with commodities. The proposed prior notice does not information will assist OCC supervisors Under the proposed rule, a national impose a prior approval requirement. by ensuring they have an opportunity to bank may engage in physical hedging Rather, the notice is designed to make assess a bank’s ability to engage in with commodities only if the national OCC supervisor aware of a bank’s derivatives activities in a safe and sound bank’s commodity position (including, derivatives activities so that such manner prior to the bank commencing as applicable, delivery point, purity, activities can be appropriately scoped the activity and provide them ongoing grade, chemical composition, weight, into OCC’s ongoing supervision and information as those activities expand to and size) is no more than five percent oversight of the bank’s safety and new categories. The OCC believes this of the gross notional value of the soundness. In addition, having objective is particularly important in the national bank’s derivatives that: (1) Are awareness of bank’s derivatives case of derivatives hedging and in that same particular commodity and activities will enable the OCC to raise financial intermediation activities (2) allow for physical settlement within questions as to whether the derivatives because these activities continue to 30 days. Title to commodities acquired activity can be conducted in a safe and evolve. and immediately sold in a transitory sound manner, or whether the The OCC specifically requests title transaction would not count against derivatives activity is within the scope comment on whether the final rule this five percent limit.102 Consistent of those legally authorized for a national should provide additional specificity with OCC interpretive letters,103 the bank, before the bank activities regarding the notice process and proposed rule would permit physical commence or at any time, as is the case whether any additional information hedging involving commodities only if with any other permissible bank should be included in the notice. the physical position more effectively activities. Additional requirements for physical reduces risk than a cash-settled hedge Section 7.1030(d)(1) of the proposed hedging activities. The OCC has rule would require a national bank to elaborated in interpretive letters and 100 Certain of the practices described in prior OCC provide EIC notice prior to engaging in interpretive letters are not included in the proposed guidance on practices with respect to rule text because they are generally-applicable any of the derivatives hedging or physical hedging with securities and financial intermediation activities safety and soundness standards that can be commodities.99 The OCC proposes to evaluated and addressed under other existing described in § 7.1030(c)(2) through (5) incorporate these practices into sources of law, including, as applicable, 12 U.S.C. for the first time. This notice 1818. For example, several interpretive letters proposed § 7.1030(e) with certain discuss that a national bank should have requirement would apply, for example, modifications to promote consistency in if a bank has previously engaged in appropriate risk management policies and the practices national banks employ procedures for its physical hedging activities. In cash-settled derivatives with respect to with respect to physical hedging addition, several interpretive letters have also a particular underlying as described in specified that a bank may not engage in physical activities. Specifically, the OCC § 7.1030(c)(3) but seeks to begin hedging activities for the purpose of speculating in proposes to apply the framework in physically settling transactions as security or commodity prices. As described above, interpretive letters addressing physical customer-driven financial intermediation as defined described in § 7.1030(c)(4) or (5). hedging using securities to all physical in the proposal would not include activities entered Likewise, a national bank would need to hedging activities involving underlyings into for the purpose of speculation. provide notice prior to first engaging in 101 See OCC Bulletin 2015–35; OCC Interpretive in which a national bank could not derivatives hedging activities pursuant Letter No. 684. to § 7.1030(c)(2) or expanding the bank’s 102 Consistent with OCC Interpretive Letter No. 98 See e.g., supra, note 27. 1040, this 5 percent limit would not apply to derivatives hedging activities to include 99 See OCC Bulletin 2015–35; OCC Interpretive physical hedging using emissions allowances. a new category of underlying. Under Letter No. 935; OCC Interpretive Letter No. 892; 103 See OCC Interpretive Letter No. 684; OCC proposed § 7.1030(d)(2), the bank must OCC Interpretive Letter No. 684. Interpretive Letter No. 632.

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involving the same commodity. As § 7.2000 provides that to the extent not applicable Federal banking statutes or discussed above, a national bank may inconsistent with applicable Federal regulations or safety and soundness. not take physical delivery of any banking statutes or regulations, or bank Accordingly, a national bank would no commodity by receipt of physical safety and soundness, a national bank longer be limited to using the corporate quantities of the commodity on bank may elect to follow the corporate governance provisions of the State premises. The proposed rule would governance procedures of the law of the where its main office is located. For apply these requirements to physical State in which the main office of the example, a national bank with its main hedging activities involving bank is located, the law of the State in office in State A and branches in State commodities due to the unique risks of which the holding company of the bank B and State C could elect to use the physical commodity activities.104 is incorporated, Delaware General corporate governance provisions of the Corporation Law, or the Model Business law of State A, State B, or State C. Subpart B—National Bank Corporate Corporation Act. Further, § 7.2000 Second, the proposal would revise Practices requires that a national bank designate paragraph (b) to authorize the national Corporate Governance (§ 7.2000) in its bylaws the body of law selected bank to use the law of the State where As noted, the OCC continually seeks for its corporate governance procedures. a holding company of the bank is to update its regulations to stay current Finally, § 7.2000 describes the process incorporated. The proposal would with industry changes and technological for obtaining OCC staff positions on the expressly recognize the possibility that advances, subject to Federal law and ability of a national bank to engage in a national bank may be controlled by consistent with the safe and sound a particular corporate governance more than one holding company and operation of the banking system. As part procedure. that those holding companies may be of this process, the OCC is proposing to The OCC is proposing to amend incorporated by different States. Third, the proposal would add a new update and modernize § 7.2000, which § 7.2000 to reduce burden, provide paragraph (c) that would allow a provides a regulatory framework for greater clarity, and modernize the national bank to continue to use the national bank corporate governance. As national bank charter with respect to corporate governance provisions of the described by the OCC in various corporate governance provisions. These law of the State where its holding conditional approvals,105 ‘‘corporate proposed amendments also would company is incorporated even if the governance procedures’’ generally refer address anomalous results that may holding company is later eliminated or to requirements involving the operation arise when a national bank eliminates no longer controls the bank, and the and mechanics of the internal its holding company. As a general national bank is not located in that organization of a national bank, matter, the OCC is proposing to change State. This change would remove an including relations among owners- the term ‘‘corporate governance impediment to a national bank that may investors, directors, and officers, and do procedure’’ used in § 7.2000 to choose to eliminate its holding company not include requirements that relate to ‘‘corporate governance provisions’’ and or is no longer controlled by that the banking powers or activities of a to revise paragraph (a) of § 7.2000 holding company but wishes to retain national bank or relationships between accordingly. The OCC believes that ‘‘corporate governance procedure’’ may longstanding and familiar corporate a national bank and customers or third be construed too narrowly than governance provisions. parties. Examples of corporate intended and omit corporate governance The OCC seeks comment on whether governance procedures include, but are practices that are not procedural in a national bank also should be able to not limited to, share exchanges, anti- nature. Revised paragraph (a) would adopt a combination of corporate takeover provisions, and the use of provide that the corporate governance governance provisions from the laws of blank check procedures in issuing provisions in a national bank’s articles several different States where the preferred stock. The OCC issued of association and bylaws and the national bank and any holding § 7.2000 in 1996 to provide national bank’s conduct of its corporate companies are located, thus potentially banks with increased flexibility to governance affairs must comply with resulting in a national bank following structure their corporate governance applicable Federal banking statutes and corporate governance provisions that procedures consistent with the regulations and safe and sound banking derive from a combination of States’ particular needs of the bank while practices. The OCC does not intend this laws, or whether a national bank should providing shareholders and others with change to affect the application of prior be limited to electing and using the adequate notice of the corporate corporate governance provisions of a 106 OCC interpretations of corporate standards on which a bank will rely. governance procedures to § 7.2000. single State. If the OCC permits a The OCC has not substantively changed The proposal would preserve the national bank to follow the corporate 107 § 7.2000 since its adoption. current ability of a national bank to use governance provisions from more than Section 7.2000 currently provides that the corporate governance provisions of one State, the OCC seeks comment on a national bank proposing to engage in the State in which the main office of the how to ensure that shareholders and a corporate governance procedure must bank is located, the State in which the others are made aware of the provisions comply with applicable Federal banking bank’s holding company is located, the that the bank has chosen. statutes and regulations and safe and Delaware General Corporation Law, or The OCC also requests comment on sound banking practices. In addition, the Model Business Corporation Act. whether it should make, to the extent The proposal, however, would increase appropriate, similar revisions to the 104 See Section 620 Report (describing the price flexibility in three ways. First, the regulations pertaining to corporate risks and operational risks specific to physical commodities activities). proposal would revise paragraph (b) of governance provisions for Federal 105 See e.g., OCC Conditional Approval No. 859 § 7.2000 to authorize a national bank to savings associations in 12 CFR 5.21 and (June 13, 2008) and OCC Conditional Approval No. elect the corporate governance 5.22, so that Federal savings 696 (June 9, 2005). provisions of the law of any State in associations may elect to use the 106 61 FR 4849, 4854 (Feb. 9, 1996). which any branch of the bank is located corporate governance provisions of: (1) 107 Non-substantive amendments to § 7.2000 changed the address and telephone number of the in addition to the law of the State in Any State in which the Federal savings OCC Communications Office. See 79 FR 15641 which the bank’s main office is located, association is located and (2) in the case (March 21, 2014) and 80 FR 28345 (May 18, 2015). to the extent not inconsistent with of Federal stock savings associations,

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the law of the State in which the it uses to apply the requirement in State corporate governance law if the association’s former holding company § 7.2000 that the State corporate provisions are not inconsistent with was incorporated. In addition, the OCC governance provision be ‘‘not Federal banking statutes or regulations requests comment on whether the final inconsistent with applicable Federal and not inconsistent with bank safety rule should change the term ‘‘corporate banking statutes or regulations’’ to be and soundness. governance procedures’’ to ‘‘corporate more flexible. The OCC has historically Proposed paragraph (b) would set governance provisions’’ in §§ 5.21 and viewed the standard as meaning that forth the type of anti-takeover 5.22 to be consistent with the change in State corporate governance provisions provisions in State corporate terminology proposed for § 7.2000. may be used unless Federal law has a governance provisions that the OCC The proposal also would revise different standard than State law, in specifically has determined are not current paragraph (c) of § 7.2000 which case Federal law controls. That inconsistent with Federal banking (proposed to be redesignated as is, if Federal law addresses a particular statutes or regulations.110 This list is not § 7.2000(d)). Current paragraph (c) corporate governance matter, then a exclusive and the OCC may find that provides that the OCC considers national bank must follow Federal law other State anti-takeover laws are not requests for the OCC staff’s position on on the matter and cannot supplement it inconsistent with Federal banking the ability of a national bank to engage with State law. However, the ‘‘not statutes or regulations. A national bank in a particular State corporate inconsistent’’ language could be could elect to follow these provisions, governance provision in accordance interpreted in a more flexible manner. subject to the bank safety and soundness with the no-objection procedures set One could view a State provision that limitation discussed below. forth in OCC Banking Circular 205 or imposed higher or more stringent Restrictions on business combinations any subsequently published agency requirements as ‘‘not inconsistent’’ with with interested shareholders. These procedures, and that requests should Federal law because a bank can comply State provisions prohibit, or permit the demonstrate how the proposed practice with both if it meets the State’s higher corporation to prohibit in its certificate is not inconsistent with applicable requirement. Thus, the OCC could of incorporation or other governing Federal statutes or regulations and is permit a bank to adopt a State corporate document, the corporation from consistent with bank safety and governance provision under § 7.2000 engaging in a business combination soundness. The OCC issued Banking that imposed a higher or more stringent with an interested shareholder or any Circular 205 on July 26, 1985 and has standard than Federal law, as long as in related entity for a specified period of not modified it since. However, a complying with the State provision the time (e.g., three years) from the date on national bank also may request the bank also would meet the requirements which the shareholder first becomes an views of the OCC on an interpretation in Federal law. The OCC requests interested shareholder (subject to of national banking statutes and comment on whether this change in the certain exceptions, such as board regulations through an interpretive interpretation of the ‘‘not inconsistent’’ approval). An interested shareholder is letter, which has been the more standard would be helpful. one that owns an amount of stock common approach since 1985. In order specified in the State statute, e.g., at to update this paragraph, the proposal National Bank Adoption of Anti- least fifteen percent. Federal banking would remove the requirement that Takeover Provisions (7.2001) statutes and regulations do not address, requests for the OCC’s views on State The OCC is proposing to add a new directly or indirectly, this type of corporate governance provisions use the section § 7.2001 that would address the restriction for national banks. Although no-objection procedure. The proposal extent to which a national bank may Federal banking statutes authorize also lists the information that a request include anti-takeover provisions in its national banks to engage in specified must contain. This information, similar articles of association or bylaws.108 consolidations and mergers,111 this to what is set forth in OCC Banking Anti-takeover provisions are examples authorization does not preclude a bank’s Circular 205, would include: (1) The of corporate governance procedures 109 shareholders from adopting a provision name of the bank; (2) citations to the covered by 12 CFR 7.2000. As discussed that limits the consolidations and State statutes or regulations involved; above, under current § 7.2000(b) a mergers into which the bank would (3) a discussion whether a similarly national bank may elect to follow the enter. Therefore, State restrictions on situated State bank is subject to or may corporate governance procedures of business combinations with interested adopt the corporate governance specified State law to the extent it is (1) shareholders are not inconsistent with provision; (4) identification of all not inconsistent with applicable Federal Federal law. Federal banking statutes or regulations banking statutes or regulation and (2) Poison pills. A ‘‘poison pill’’ is a State that are on the same subject as, or not inconsistent with bank safety and statutory provision that provides, or that otherwise have a bearing on, the subject soundness. permits the corporation to provide in its of the proposed State corporate The purpose of proposed § 7.2001 is certificate of incorporation or other governance provision; and (5) an to provide the OCC’s views about the governing document, that all analysis of how the proposed corporate permissibility of several types of anti- shareholders, other than the hostile governance provision is not inconsistent takeover provisions. Specifically, acquiror, have the right to purchase with applicable Federal statutes or proposed paragraph (a) of § 7.2001 additional stock at a substantial regulations nor with bank safety and would provide that a national bank may, discount upon the occurrence of a soundness. The OCC notes that this pursuant to 12 CFR 7.2000(b), adopt triggering event. Because no Federal provision would not preclude a national anti-takeover provisions included in banking statutes or regulations directly bank from seeking informal consultation or indirectly address these shareholder with OCC staff. However, if the bank 108 OCC regulations currently include provisions wants to receive a written response from addressing adoption of anti-takeover provisions by 110 Permitting the use of staggered boards is OCC staff, it should follow the stock Federal savings associations. See 12 CFR another anti-takeover provision. The proposed new procedure in this proposed paragraph 5.22(g)(7), (h) and (j)(2)(i)(A). The OCC is not section does not include staggered boards because proposing to amend those provisions. they are now expressly permitted under the (d). 109 The proposed rule would change this National Bank Act. 12 U.S.C. 71; 12 CFR 2024. Finally, the OCC requests comment terminology in § 7.2000 to ‘‘corporate governance 111 See 12 U.S.C 215, 215a, 215a–1, 215a–3, and on whether it should revise the standard provisions.’’ 215c.

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purchase rights, State poison pill laws which provide for removal for cause and governance provision that interferes are not inconsistent with Federal law.112 for failure to meet statutory director with this express right to vote is Requiring all shareholder actions to qualifications.115 Therefore, State inconsistent with Federal law. be taken at a meeting. These State provisions requiring shareholder As indicated above, § 7.2000(b) provisions provide, or permit the removal of a director only for cause are permits a national bank to elect to corporation to provide in its certificate not inconsistent with Federal law. follow a State corporate governance of incorporation or other governing Proposed paragraph (c) would set provision only if it is not inconsistent document, that all actions to be taken by forth the type of anti-takeover with Federal law and bank safety and shareholders must occur at a meeting provisions in State corporate soundness. Proposed paragraph (d) of and prohibit shareholders from taking governance provisions that the OCC has § 7.2001 addresses the impact of bank action by written consent. Certain determined are inconsistent with safety and soundness on adoption of Federal banking statutes require Federal banking statutes or regulations. anti-takeover provisions. shareholder approval to be taken at a A national bank could not elect to Anti-takeover provisions could make meeting 113 while other sections require follow these provisions. These it harder for a bank to be acquired by shareholder approval but do not specify provisions are set forth below. another bank or by investors or to raise a meeting.114 There is no provision in Supermajority voting requirements. capital by discouraging share purchases Federal law authorizing national bank These State statutory provisions require, by a potential acquiror. Thus, when a shareholders to take action by written or permit the corporation to require in bank is in a weak condition, anti- consent in lieu of a meeting. its certificate of incorporation or other takeover provisions the OCC has Furthermore, nothing in Federal law governing document, that a determined are not inconsistent with precludes a national bank’s articles of supermajority of the shareholders Federal law nevertheless would be association from requiring a meeting for approve specified matters. A inconsistent with bank safety and any action. Therefore, this type of State requirement that a supermajority vote of soundness if they would impair the provision is not inconsistent with shareholders must approve some possibility of restoring the bank to Federal law. transactions is inconsistent with Federal sound condition. These provisions Limits on shareholders’ authority to law when applied to transactions for would then be impermissible. call special meetings. These State which a Federal statute or regulation Accordingly, proposed paragraph (d) provisions provide, or permit the includes an express specific shareholder would provide that any State corporate corporation to provide in its certificate approval level. Certain provisions of the governance provision, including anti- of incorporation or other governing National Bank Act specify shareholder takeover provisions, that would render document, that only the board of approval by a two-thirds vote 116 and more difficult or discourage an injection directors, and not shareholders, have other provisions require majority of capital by purchase of bank stock, a the right to call special meetings of the shareholder approval.117 When a merger, the acquisition of the bank, a shareholders or, if shareholders have the provision in the National Bank Act tender offer, a proxy contest, the right, require a high percentage of specifies the level of shareholder vote assumption of control by a holder of a shareholders to call the meeting. required for approval, it is inconsistent large block of the bank’s stock, or the Because Federal banking statutes or with Federal law to follow a State removal of the incumbent board of regulations do not address, directly or corporate governance provision that directors or management is inconsistent indirectly, the right of shareholders of a permits or requires a different level or with bank safety and soundness if: (1) national bank to call special meetings, an additional shareholder approval The bank is less than adequately these type of State laws are not requirement for a subset of capitalized (as defined in 12 CFR part inconsistent with Federal law. shareholders. 6); (2) the bank is in troubled condition Shareholder removal of a director Restrictions on a shareholder’s right (as defined in 12 CFR 5.51(c)(7)); (3) only for cause. These State provisions to vote all the shares it owns. These grounds for the appointment of a provide, or permit the corporation to State statutory provisions prohibit, or receiver under 12 U.S.C. 191 are provide in its certificate of permit the corporation in its certificate present; or (4) the bank is otherwise in incorporation or other governing of incorporation or other governing less than satisfactory condition, as document, that shareholders may document to prohibit, a person from determined by the OCC. remove a director only for cause, rather voting shares acquired that increase However, proposed paragraph (d) also than both for cause and without cause. their percentage of ownership of the provides that an anti-takeover provision The National Bank Act and OCC company’s stock above a certain level. is not inconsistent with bank safety and regulations do not have a specific This type of provision is inconsistent soundness if, at the time it adopts the provision addressing director removal with the National Bank Act, which provision, the national bank: (1) Is not by shareholders. Removal only for cause expressly provides that each subject to any of the foregoing is consistent with the OCC’s model shareholder is entitled to one vote on conditions and (2) includes along with national bank Articles of Association, each share of stock held by the the provision a limitation that the shareholder on all matters other than provision is not effective if one or more 112 However, shareholders, including the hostile elections for directors, where of the foregoing conditions occur or if acquiror, should consider the implications under cumulative voting may be allowed if so the OCC otherwise directs the bank not the Change in Bank Control Act or Bank Holding provided in the articles of to follow the provision for supervisory Company Act if a shareholder, or shareholders association.118 A State corporate reasons. acting in concert, acquire sufficient shares to constitute ‘‘control.’’ Proposed paragraph (e) provides for 113 See 12 U.S.C. 71, 214a, 215, 215a, and 215a– 115 See Articles of Association, Charters, and OCC case-by-case review of anti- 2. Bylaw Amendments (Forms), Comptroller’s takeover provisions. The OCC reviewed 114 See 12 U.S.C. 30, 51a, 57, and 59. However, Licensing Manual (June 19, 2017) (Model Articles each type of State anti-takeover of Association, Article Fourth, last paragraph). 12 U.S.C. 21a provides that any action requiring provision described in proposed approval of the stockholders be obtained by 116 See 12 U.S.C. 30, 57, 59, 181, 214a, 215, 215a, approval by a majority vote of the voting shares at and 215a–2. paragraph (b) for consistency with a meeting, unless the statutory provision addressing 117 See 12 U.S.C. 21a and 51a. Federal banking statutes and regulations the action requires greater level of approval. 118 12 U.S.C. 61. only at a general level, without

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reviewing the specific terms of a requires shareholder approval for serving the function of president is proposed provision to be adopted by a changes to the corporation’s bylaws, generally the individual appointed to particular bank. While the OCC has then the national bank must include the oversee the national bank’s day-to-day concluded that the types of provisions provision in its articles of association. activities.120 This change would provide set out in paragraph (b) are not Director or Attorney as Proxy (§ 7.2002) national banks with flexibility in inconsistent with Federal banking employee titles and management statutes and regulations in general, the Twelve U.S.C. 61 prohibits an officer, organization. The OCC notes that 12 specific provision a particular bank clerk, teller, or bookkeeper of the bank U.S.C. 24(Fifth) provides national banks adopts may contain features that could from acting as proxy for shareholder with the authority to set the duties of change the result of the OCC’s review. voting. Section 7.2002 codifies this their officers. National banks should Similarly, some anti-takeover provisions prohibition in OCC regulations, and ensure that their employee titles do not may be inconsistent with bank safety provides that any person or group of create unnecessary confusion. and soundness for a particular national persons, except the bank’s officers, Second, the OCC is proposing to bank because of its individual clerks, tellers, or bookkeepers, may be remove the provision in § 7.2012 that circumstances, even if it is not subject designated to act as proxy. The OCC is states that a person other than the to the conditions listed in proposed proposing to amend this section to president may serve as chief executive paragraph (d). clarify that the proxy referenced in the officer, and this person is not required In order to address the need for section is for shareholder voting, as to be a director of the bank. This individual determinations when provided in the statute. The OCC provision is unnecessary. The position appropriate, proposed paragraph (e) intends no substantive change with this of chief executive officer is not would provide that the OCC may amendment. referenced in statute and, as indicated determine that a State anti-takeover President as Director; Senior Executive above, national banks have discretion to provision, as proposed or adopted by an Officer (§ 7.2012) set the duties of their officers. Further, individual national bank, is: (1) this provision would conflict with the Inconsistent with Federal banking Twelve U.S.C. 76 provides that the first proposed revision. Because statutes or regulations, even if it is of a president of the bank must be a member function rather than title would govern type included in paragraph (b) or (2) of the board and be chairman thereof, under the proposal, a chief executive inconsistent with bank safety and but that the board may designate a officer that serves the function of soundness other than as provided in director in lieu of the president to be president would be required to be a paragraph (d). The OCC could begin a chairman, who must perform duties as member of the board.121 case-by-case review on its own assigned by the board. Section 7.2012 The OCC requests comment on initiative. In addition, a bank that codifies this statutory requirement in whether the proposed changes would wishes the OCC to review the the OCC’s rules by providing that provide national banks with flexibility permissibility of the specific State anti- pursuant to 12 U.S.C. 76, the president in their organization of management or takeover provisions it has adopted or of a national bank must be a member of introduce complexity given the current proposes to adopt may request the the board of directors, but a director practices at national banks. OCC’s review, under the procedures set other than the president may be elected forth at 12 CFR 7.2000(d). chairman of the board. This section Indemnification of Institution-Affiliated Finally, proposed paragraph (f) further provides that a person other than Parties (§§ 7.2014, 145.121) addresses the method a national bank, the president may serve as the chief The OCC is proposing to amend and its shareholders, and its directors would executive officer, and that this person is reorganize § 7.2014, Indemnification of use to adopt each anti-takeover not required to be a director of the bank. institution-affiliate parties (by national provision. In general, the bank would When first proposing this rule, the OCC banks), apply revised § 7.2014 to follow the requirements for board of acknowledged that it was adding this Federal savings associations, and director and shareholder approval set second sentence to provide that a remove § 145.121, Indemnification of out in the State corporate governance person other than the president or a directors, officers and employees (by statute it is electing to follow. However, director may serve as chief executive Federal savings associations). Twelve if the provision is included in the bank’s officer of a bank.119 CFR 7.2014 addresses indemnification articles of association, the bank’s The OCC is proposing two substantive of institution-affiliated parties (IAPs) by shareholders would be required to changes to this section. First, the OCC national banks in cases involving an approve the amendment of the articles is proposing that the person serving as, administrative proceeding or civil pursuant to 12 U.S.C. 21a, even if the or in the function of, president of a action initiated by a Federal banking State law does not require approval by national bank, regardless of title, must agency, as well as cases that do not the shareholders. Further, if the State be a member of the board of directors. involve a Federal banking agency. corporate governance law requires the This change would align the regulation Under § 7.2014(a), a national bank only provision to be in the company’s articles with the OCC’s view that the bank may make or agree to make of incorporation, certificate of officer positions in 12 U.S.C. 76 and indemnification payments to an IAP incorporation, or similar document, the other provisions of the National Bank with respect to an administrative national bank must include the Act refer to functions rather than proceeding or civil action initiated by a provision in its articles of association. If required titles. If a national bank does Federal banking agency if those the State corporate governance law does not have an individual serving in the not require the provision to be in the position of president but does have 120 See OCC, ‘‘The Director’s Book: Role of company’s articles of incorporation, another officer serving the function of Directors for National Banks and Federal Savings certificate of incorporation, or similar president, the individual serving in the Associations’’ (July 2016), available at document but allows it to be in the function of president must be a member www.OCC.gov (Director’s Book). bylaws, then the national bank could 121 The Director’s Book uses the terms of the board of directors. The person ‘‘president’’ and ‘‘chief executive officer’’ include the provision in its articles of interchangeably to refer to the individual appointed association or in its bylaws. However, if 119 60 FR 11924 (March 3, 1995). This rule was by the board of directors to oversee the day-to-day the State corporate governance law finalized in 1996. 61 FR 4849 (Feb. 9, 1996). activities of a national bank.

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payments are reasonable and consistent incorporated, or the relevant provisions savings association will be repaid if the with the requirements of 12 U.S.C. of the Model Business Corporation Act person on whose behalf payment is 1828(k) and the implementing or Delaware General Corporation Law, made is later determined not to be regulations thereunder. Pursuant to provided such payments are consistent entitled to the indemnification. section 1828(k), the Federal Deposit with safe and sound banking practices. Pursuant to § 145.121(f), an Insurance Corporation (FDIC) may Additionally, pursuant to association that has a bylaw in effect prohibit, by regulation or order, any § 7.2014(b)(2), a national bank may relating to indemnification of its indemnification payment made with provide for the payment of reasonable personnel must be governed solely by regard to an administrative proceeding premiums for insurance covering the that bylaw, except that its authority to or civil action instituted by the expenses, legal fees, and liability of obtain insurance must be governed by appropriate Federal banking agency that IAPs to the extent that these costs could § 145.121(d), which, as described above, results in a final order under which the be indemnified under administrative authorizes the purchase of IAP: (1) Is assessed a civil money proceedings or civil actions not initiated indemnification insurance unless the penalty; (2) is removed or prohibited by a Federal banking agency, as insurance pays for losses created by from participating in conduct of the provided in § 7.2014(b)(1). willful or criminal misconduct. Section affairs of the insured depository Twelve CFR 145.121 addresses 145.121(g) states that the institution; or (3) is required to take indemnification of directors, officers indemnification provided for in certain affirmative actions in regards to and employees by Federal savings § 145.121 for Federal savings an insured depository institution.122 associations. Section 145.121(b) requires associations is subject to and qualified Section 1828(k) defines a Federal savings association to by 12 U.S.C. 1821(k), which addresses ‘‘indemnification payment’’ to mean any indemnify any person against whom an personal liability for directors and payment (or any agreement to make any action is brought or threatened because officers in certain civil actions. payment) by any insured depository that person is or was a director, officer, The OCC is proposing to add Federal institution to pay or reimburse an IAP or employee of the association. This savings associations to § 7.2014 so that for any liability or legal expense with indemnification is subject to the both charters would be required to regard to any administrative proceeding requirements of § 145.121(c) and (g). comply with § 7.2014. Because § 7.2014 or civil action instituted by the Section 145.121(c) provides that applies to IAPs and not only officers, appropriate Federal banking agency that indemnification only may be made directors, and employees as does results in a final order under which the available to the IAP if there is a final § 145.121, the scope of indemnification IAP: (1) Is assessed a civil money judgment on the merits in the IAP’s rules for Federal savings associations penalty; (2) is removed or prohibited favor; or, in the case of settlement, final would be broader, applying also to from participating in conduct of the judgment against the IAP, or final certain Federal savings association affairs of the insured depository judgment in the IAP’s favor other than controlling shareholders, independent institution; or (3) is required to take on the merits, if a majority of the contractors, consultants, and other certain affirmative actions in regards to disinterested directors of the Federal persons identified in 12 U.S.C. 1813(u). an insured depository institution.123 savings association determine that the The OCC also is proposing changes to Section 7.2014(a) defines ‘‘institution- IAP was acting in good faith. It also § 7.2014. First, the proposal would affiliated party’’ by reference to 12 provides that the association give the amend current § 7.2014(b)(1), U.S.C. 1813(u). OCC at least 60 days’ notice of its redesignated in this proposal as Section 7.2014(b)(1) permits a intention to indemnify an IAP and § 7.2014(a) and retitled, to provide that national bank to indemnify IAPs for provides that the association may not State law on indemnification may apply damages and expenses, including the indemnify the IAP if the OCC advises to all administrative proceedings or civil advancement of legal fees and expenses, the savings association in writing that actions for which an IAP can be in cases involving an administrative the OCC objects. Section 145.121(g) indemnified, not just actions that are proceeding or civil action that is not makes the indemnification subject to 12 initiated by a person or entity not a initiated by a Federal banking agency in U.S.C. 1821(k). Federal banking agency as under the accordance with the law of the State in Pursuant to § 145.121(d), a Federal current rule. This would clarify the which the main office of the bank is savings association may obtain application of State law on located, the law of the State in which insurance to protect it and its directors, indemnification to actions initiated by the bank’s holding company is officers, and employees from potential Federal banking agencies. However, losses arising from claims for acts current § 7.2014(a), redesignated by this 122 In prohibiting such payments, the FDIC may committed in their capacity as directors, proposal as § 7.2014(b), would still take into account several factors listed in the officers, or employees. However, a apply. Specifically, under redesignated statute, such as whether there is a reasonable basis Federal savings association may not § 7.2014(b), with respect to proceedings to believe the IAP has committed fraud, breached a fiduciary duty, or committed insider abuse; is obtain insurance that provides for or civil actions initiated by a Federal substantially responsible for the insolvency of the payment of losses incurred as a banking agency, a national bank or depository institution; has violated any Federal or consequence of willful or criminal Federal savings association only may State banking law or regulation that has had a misconduct. make or agree to make indemnification material effect on the financial condition of the institution; or was in a position of managerial or Pursuant to § 145.121(e), if a majority payments to an IAP that are reasonable fiduciary responsibility. See 12 U.S.C. 1828(k)(2). of the directors of a Federal savings and consistent with the requirements of The FDIC has forbidden certain indemnification association conclude that, in connection section 1828(k) and implementing payments by regulation. See 12 CFR 359.1(l)(1) with an action, a person may become regulations thereunder.124 (definition of ‘‘prohibited indemnification payment’’); 12 CFR 359.3 (forbidding prohibited entitled to indemnification, the The OCC also is proposing a technical indemnification payments, except as provided in directors may authorize payment of change to redesignated § 7.2014(a). As part 359). reasonable costs and expenses arising 123 See 12 U.S.C. 1828(k)(5)(A); see also 12 U.S.C. from the defense or settlement of the 124 The OCC also proposes to move the cross- 1818(b)(6) (defining affirmative actions that an IAP action. Before making advance payment reference to the definition of IAP in redesignated may be required to take in regard to insured § 7.2014(b) to redesignated paragraph (a) and to depository institutions for purposes of section of expenses, the savings association is make stylistic changes to the wording of 1828(k)(5)(A)). required to obtain an agreement that the redesignated § 7.2014(b).

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indicated above, the current rule states ultimately found not to be entitled to include the provision in § 145.121 that that in cases involving an administrative under 12 U.S.C. 1828(k) and requires Federal savings associations to proceeding or civil action not initiated implementing regulations, except to the indemnify persons against whom an by a Federal banking agency, a national extent the bank’s expenses have been action is brought under certain bank may indemnify an IAP in reimbursed by an insurance policy or circumstances, such as if they are accordance with the law of the State in fidelity bond.127 This requirement is successful on the merits of the action, which the main office of the bank is similar to the requirement in nor 132 the provision requiring a board located, the law of the State in which § 145.121(e) currently applicable to vote to authorize indemnification under the bank’s holding company is Federal savings associations and certain circumstances.133 In place of incorporated, or the relevant provisions therefore would not impose any these requirements, proposed § 7.2014 of the Model Business Corporation Act additional burdens on Federal savings would permit Federal savings or Delaware General Corporation Law, associations. Further, FDIC provided such payments are consistent regulations,128 State law,129 and the associations to incorporate State law on with safe and sound banking practices. Model Business Corporation Act 130 indemnification. Because State law Because these sources of law are contain similar requirements for IAPs to governing indemnification generally identical to the law a national bank may reimburse institutions for funds to incorporates these aspects of current elect to follow pursuant to § 7.2000(b) or which they are later found not to be § 145.121, the OCC expects that Federal the law a Federal savings association entitled. As most national banks are savings associations will continue to be may elect to follow pursuant to §§ 5.21 subject to the FDIC’s indemnification subject to similar provisions governing or 5.22, the OCC proposes to replace the regulations or have elected under 12 indemnification as before. For example, language on sources of State law in this CFR 7.2000(b) to follow State corporate State law generally requires mandatory provision with a statement that the bank law imposing reimbursement indemnification if an employee is or savings association may indemnify an requirements for advancement of funds, successful on the merits,134 as well as a IAP for damages and expenses in the OCC believes that this proposed board vote authorizing indemnification accordance with the law of the State the change would not impose any in almost all circumstances.135 Because bank or savings association has additional burden on national banks national banks also may incorporate designated for its corporate governance and would merely codify existing State indemnification law, they would under the provisions of §§ 7.2000, 5.21, practices. This proposed change also be subject to these State indemnification 125 or 5.22, as applicable. will ensure that national banks, and provisions as well. The OCC specifically Second, the OCC is proposing to Federal savings associations, do not requests comment on whether, instead amend § 7.2014(b)(2), redesignated as provide indemnification to IAPs that is of relying on State law, the final rule § 7.2014(d) in the proposal, to allow a ultimately in contravention of the should include the requirement from national bank or Federal savings statutory limits of section 1828(k). association to provide for the payment The OCC believes that proposed § 145.121 that, in the case of settlement, of reasonable insurance premiums in § 7.2014 incorporates the provisions of final judgment against the IAP, or final connection with all actions involving an current § 145.121 that should be judgment in the IAP’s favor other than IAP that could be indemnified under applicable to both national banks and on the merits, a majority of the § 7.2014, whether or not initiated by a Federal savings associations, while disinterested directors determine that Federal banking agency. The OCC maintaining appropriate flexibility for the IAP was acting in good faith before believes this change would resolve both types of institutions. Specifically, the instruction may indemnify the IAP. confusion regarding how current the proposal would apply § 7.2014 to The proposed rule also does not § 7.2014(b)(2) is applied. This proposed actions brought by a Federal banking include the provision in § 145.121 that change also would better align OCC agency and actions not brought by a requires a 60-day prior notice to the regulations on the payment of insurance Federal banking agency, as in § 145.121, OCC before making an premiums with the FDIC’s regulations while retaining the statutory limits of indemnification.136 The OCC is not and 12 U.S.C. 1828(k).126 section 1828(k).131 The proposal also proposing to retain this provision Third, the OCC is proposing to add a includes the reimbursement agreement new paragraph (c) that would require a requirement, as in § 145.121(e). because it believes it is burdensome and national bank or Federal savings However, the proposed rule does not unnecessary. However, the OCC association, before advancing funds to requests comment on whether the final an IAP under § 7.2014, to obtain a 127 National banks are required to purchase rule should include this prior notice written agreement that the IAP will fidelity coverage by 12 CFR 7.2013. requirement and, if so, what benefits reimburse the bank for any portion of 128 See 12 CFR 359.5(a)(4). prior approval would provide that 129 indemnification that the IAP is See, e.g., 8 Del. C. § 145(e); Utah Code § 16– would outweigh any additional 10a–904; 805 Ill. Comp. Stat. 5/8.75(e); see also N.Y. Bus. Corp. Law § 725(a) (requiring repayment, but regulatory burden. 125 As explained supra, the OCC is proposing to not explicitly requiring a written agreement). amend § 7.2000 to also allow national banks to 130 See Model Bus. Corp. Act § 8.53(a). follow the corporate governance provisions of the 131 Section 145.121(g) subjects and qualifies the law of any State in which any branch of the bank indemnification provided for by current § 145.121 is located or where a holding company of the bank to 12 U.S.C. 1821(k). In contrast, current § 7.2014 is incorporated even if the holding company is later explicitly subjects national bank indemnification to eliminated or no longer controls the bank and the the restrictions of 12 U.S.C. 1828(k). Section 132 national bank is not located in that State. The OCC 1828(k) directly addresses indemnification and is See § 145.121(b). is requesting comment on making the same change applicable to any insured depository institution. 133 See § 145.121(c)(1)(ii)(C)). to §§ 5.21 and 5.22. See 12 U.S.C. 1828(k)(5)(A). Section 1821(k) 134 See, e.g., 8 Del. C. 145(c); New York BCL 126 The FDIC’s implementing regulations under addresses personal liability for directors and § 723(a); 805 ILCS 5/8.75(c); Model Bus. Corp. Act, section 1828(k), 12 CFR part 359, explicitly allow officers and is also applicable to any insured § 8.52 (2016). the payment of insurance premiums in anticipation depository institution. Both of these statutes apply, 135 See, e.g., 8 Del. C. 145(d); New York BCL of actions brought by a Federal banking agency, and will continue to apply to national banks and provided the insurance is not used to reimburse the Federal savings associations but proposed § 7.2014 § 723(b); 805 ILCS 5/8.75(d); Model Bus. Corp. Act, cost of a judgment or civil monetary penalty. See retains the citation to section 1828(k) as the more §§ 8.53(c), 8.55 (2016). 12 CFR 359.1(l)(2). relevant citation for indemnification purposes. 136 See § 145.121(c)(2)).

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Restricting Transfer of Stock and Record articles of association, even if this type prohibition.139 Therefore, § 7.2020 is Dates; Stock Certificates (§ 7.2016) of transfer is incompatible with the use unnecessary. The OCC notes that Facsimile Signatures on Bank Stock of signatures and seals. Therefore, the removing § 7.2020 would not limit the Certificates (§ 7.2017) OCC is proposing to state that a national OCC’s authority over share repurchases. bank may prescribe the manner in Share repurchases are considered Lost Stock Certificates (§ 7.2018) which its stock shall be transferred in its reductions in capital and would Sections 12 CFR 7.2016, 7.2017, and by-laws or articles of association. The continue to be subject to OCC and 7.2018 contain specific requirements OCC also is proposing to specify that a shareholder approval under 12 U.S.C. related to national bank stock transfers national bank that does issue stock in 59 and 12 CFR 5.46. and stock certificates. Many of these certificate form must comply with the Capital Stock-Related Activities of a requirements are mandated by 12 U.S.C. requirements of section 52, including: National Bank (New § 7.2025) 52. However, some of these (1) The name and location of the bank; requirements are outdated because (2) name and holder of record of the The OCC is proposing a new section, national banks today rarely issue stock; (3) the number and class of shares § 7.2025, that would codify various OCC physical stock certificates. which the certificate represents; (4) if interpretations of the National Bank Act Section 7.2016(a) states that, pursuant the bank issues more than one class of involving capital stock issuances and section 52, a national bank may impose stock, the respective rights, preferences, repurchases. Specifically, proposed conditions on the transfer of its stock privileges, voting rights, powers, § 7.2025 would explain the shareholder reasonably calculated to simplify the restrictions, limitations, and approval requirements for the issuance work of the bank with respect to stock qualifications of each class of stock of authorized common stock; the transfers, voting at shareholders’ issued (unless incorporated by reference issuance, repurchase, and redemption of meetings, and related matters and to to the articles of association); (5) preferred stock pursuant to blank check protect the bank against fraudulent signatures of the president and cashier procedures; and share repurchase transfers. Consistent with the statute, of the bank, or such other officers as the programs. Generally, an increase or § 7.2016(b) allows a national bank to bylaws of the bank provide; and (6) the decrease in the amount of a national close its stock records for a reasonable seal of the bank. The OCC is proposing bank’s common or preferred stock is a period to ascertain shareholders for to continue allowing banks to meet the change in permanent capital subject to voting purposes. The board also may fix the notice and approval requirements of signature requirements of section 52 140 record dates, which should be through the use of electronic means or 12 CFR 5.46 and applicable law. Proposed § 7.2025(a) sets forth the reasonable in proximity to the date by facsimiles, as is permitted by current general requirements for changes in notice is given to shareholders of the § 7.2017. meeting. Section 7.2017 states that the permanent capital. Paragraphs (b) president and cashier of the bank, or Finally, the OCC is proposing to through (d) of proposed § 7.2025 other officers authorized by the bank’s remove § 7.2018 as unnecessary. Section provide more specific requirements for bylaws, shall sign each stock certificate. 7.2018 states that if the bank’s articles shareholder approval of various types of These signatures may be manual or of association or bylaws do not provide issuances and repurchases. Section facsimile and may be electronic. Each for replacing lost, stolen, or destroyed 7.2025(e) would identify certain certificate also must be sealed with the stock certificates, the bank may adopt permissible features for preferred stock. seal of the bank. procedures under 12 CFR 7.2000. Issuance of previously approved and To streamline OCC rules, the OCC is Section 7.2000 generally permits authorized common stock. The issuance proposing to combine §§ 7.2016 and national banks to adopt corporate of common stock is governed by 12 7.2017 into one section, § 7.2016, that governance procedures 138 in U.S.C. 57, which provides that a would apply to both stock transfers and accordance with State law, to the extent national bank ‘‘may, with the approval stock certificate requirements. The OCC not inconsistent with applicable Federal of the [OCC], and by a vote of also is proposing to make OCC rules on laws and regulations or with bank safety shareholders owning two-thirds of the stock certificates more flexible. As noted and soundness. Therefore, this stock of such [bank], increase its capital above, section 12 U.S.C. 52 requires provision is unnecessary. stock to any sum.’’ The OCC has interpreted 12 U.S.C. 57 to require a certain officers of the association to sign Acquisition and Holding of Shares as two-thirds shareholder vote to amend every bank stock certificate and for it to Treasury Stock (§ 7.2020) be sealed with the seal of the the articles of association to increase the association. However, banks now The OCC is proposing to remove 12 number of authorized shares.141 The generally hold stock in ‘‘book-entry’’ CFR 7.2020. Currently, § 7.2020 OCC also has long interpreted section 57 form, which is not a format that provides that a national bank may to permit a national bank’s board of supports signatures or stamps. Although repurchase its outstanding shares and directors to issue common stock without section 52 places requirements on hold them as treasury stock as a capital obtaining additional shareholder physical stock certificates, the OCC does reduction under 12 U.S.C. 59 if the approval at the time of the issuance so not believe that the language of that repurchase and retention is for a long as the issuance does not exceed the section requires banks to actually issue ‘‘legitimate corporate purpose’’ and not amount of common stock previously stock in certificated form. for speculative purposes. The OCC Notably, section 52 also states that issued § 7.2020 in 1996 as an exception 139 Public Law 106–569, Title XII, section 1207(a), ‘‘[t]he capital stock of each association 114 Stat. 3034 (American Homeownership and to the provision in 12 U.S.C. 83 that Economic Opportunity Act of 2000). shall be . . . transferable on the books prohibited a national bank from being 140 See generally 12 U.S.C. 51a, (preferred stock of the association in such manner as the ‘‘purchaser or holder’’ of its own issuance), 57 (increase in capital), and 59 (reduction may be prescribed in the by-laws or shares. However, in 2000, Congress of capital). articles of association.’’ 137 This amended section 83 to remove this 141 See, e.g., Articles of Association, Charter, and language allows banks to provide for Bylaw Amendments, Comptroller’s Licensing Manual (June 2017), p. 3 (indicating that two-thirds book-entry transfer in their by-laws or 138 The proposed rule would change this of a national bank’s shareholders must vote to terminology in § 7.2000 to ‘‘corporate governance increase or decrease the authorized number of 137 See 12 U.S.C. 52, first paragraph. provisions.’’ common shares in the articles of association).

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approved and authorized by Twelve U.S.C. 59 requires the approval national bank may establish a program shareholders.142 Proposed 7.2025(b) of two-thirds of shareholders for a for the repurchase, from time to time, of would codify this interpretation. national bank to reduce capital, but it the national bank’s common or Specifically, paragraph (b) would does not specify when in the process the preferred stock, if permitted by the provide that, in compliance with 12 bank must obtain shareholder approval. corporate governance provisions U.S.C. 57, a national bank may issue In Interpretive Letter 1162, the OCC adopted by the bank under 12 CFR common stock up to an amount determined that the holders of two- 7.2000. Proposed paragraph (d) also previously approved and authorized in thirds of a national bank’s shares may provides that, to satisfy the shareholder the national bank’s articles of approve in advance redemptions of approval requirement of 12 U.S.C. 59, association by holders of two-thirds of blank check preferred stock by voting to the repurchase program must be the national bank’s shares without amend the articles of association to approved in advance by the holders of obtaining additional shareholder authorize the issuance and redemption two-thirds of the national bank’s shares, approval for each subsequent issuance of blank check preferred shares.145 including through an amendment to the within the authorized amount. Proposed § 7.2025(c) would codify national bank’s articles of association Issuance, repurchase, and redemption these interpretations and permit blank that authorizes the board of directors to of preferred stock pursuant to certain check procedures, if approved in implement share repurchase programs procedures. Twelve U.S.C. 51a requires advance by the bank’s shareholders, that from time to time under board- a majority of shareholders vote to authorize the issuance, repurchase, and determined parameters that can limit approve a national bank’s issuance of redemption of preferred stock without the frequency, type, aggregate limit, or preferred stock. However, the statute additional shareholder approval at the purchase price of repurchases. does not specify when in the process the time of issuance, repurchase, or Preferred stock features. Proposed bank must obtain shareholder approval. redemption, if certain conditions are § 7.2025(e) would clarify that a national In OCC Interpretive Letter 921, the OCC met. Proposed paragraph (c) would bank may issue and maintain determined that a national bank could provide that, subject to the requirements noncumulative preferred stock under 12 adopt, subject to required shareholder of 12 U.S.C. 51a, 51b, and 59, a national U.S.C. 51b. This provision would codify approval, a provision in its articles of bank may adopt procedures to authorize a longstanding OCC interpretation that association or an amendment to its the board of directors to issue, section 51b, by its terms, describes articles authorizing the bank’s board of determine the terms of, repurchase, or limitations on the portion of the directors to issue preferred stock using redeem one or more series of preferred preferred stock dividend which may be blank check procedures (‘‘blank check stock, if permitted by the corporate cumulative. It does not require that preferred stock’’).143 Blank check governance provisions adopted by the preferred stock dividends must always preferred stock refers to preferred stock bank under 12 CFR 7.2000. This be cumulative.146 Specifically, proposed for which the board is empowered to proposed provision further provides § 7.2025(e) would provide that a issue and determine the terms of that, to satisfy the shareholder approval national bank’s preferred stock may be authorized and unissued preferred requirements of 12 U.S.C. 51a and 59, cumulative or non-cumulative and may stock. To be permissible, blank check shareholders must approve the adoption or may not have voting rights on one or preferred stock must be permitted by the of these procedures in advance through more series. an amendment to the national bank’s corporate governance procedures Subpart C— National Bank and Federal 144 articles of association, and that any adopted by the bank under § 7.2000. Savings Association Operations The OCC also determined that amendment that authorizes both the shareholders’ adoption or approval of a issuance and the repurchase and National Bank and Federal Savings blank check preferred stock article redemption of shares must be approved Association Hours and Closings constitutes the shareholder action by holders of two-thirds of the national (§ 7.3000) required by 12 U.S.C. 51a and 51b to bank’s shares. The OCC is proposing to amend issue and establish the terms of Share repurchase programs. In § 7.3000, National bank hours and preferred stock. The subsequent Interpretive Letter 1162, the OCC closings, to include Federal savings issuance of the preferred stock within determined that the shareholder associations, to update it, and to make the authorized limits would not require approval requirement in 12 U.S.C. 59 technical and clarifying changes. additional shareholder approval. may be satisfied by a two-thirds Twelve U.S.C. 95(b)(1) specifically Interpretive Letter 921 did not shareholder vote approving an authorizes the Comptroller to designate specifically address blank check amendment to the bank’s articles of a legal holiday because of emergency preferred procedures that include the association authorizing the board of conditions occurring in any State or part authority, and the shareholder action directors to implement share repurchase of a State for national banks located in required, to repurchase and redeem programs. A share repurchase program that State or affected area. Section blank check preferred stock. authorizes the board of directors to 95(b)(1) also provides that when a State The redemption or repurchase of repurchase the national bank’s common or State official authorized by law preferred stock is a reduction in capital. or preferred stock from time to time designates any day as a legal holiday for under board-determined parameters that 142 A previous version of § 5.46 (1981) provided can limit the frequency, type, aggregate 146 In part, section 51b provides that preferred that shareholder approval would not be required to limit, or purchase price of repurchases, shareholders ‘‘shall be entitled to receive such increase common stock through the issuance of a without obtaining additional cumulative dividends . . . as may be provided in class of common up to an amount previously the articles of association . . . and no dividends approved by shareholders. Subsequent amendments shareholder approval at the time the shall be declared or paid on common stock until to § 5.46, which the OCC intended to simplify 12 shares are repurchased. Proposed cumulative dividends on preferred stock have been CFR part 5, omitted this language but did not § 7.2025(d) would codify this paid in full.... ’’ The OCC has previously change this interpretation. interpretation by providing that, subject interpreted section 51a as providing national banks 143 OCC Interpretive Letter No. 921 (Dec. 13, with broad authority to issue preferred stock, 2001). to the requirements of 12 U.S.C. 59, a including preferred stock bearing noncumulative 144 The proposed rule would change this dividends, notwithstanding the language of section terminology in § 7.2000 to ‘‘corporate governance 145 OCC Interpretive Letter No. 1162 (July 6, 51b. See OCC Letter from Martin Goodman, OCC provisions.’’ 2018). Assoc. Ch. Couns. (Oct. 3, 1977).

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ceremonial or emergency reasons, that § 510.2(b) 148 and this proposed rule an emergency condition. The bank, day is a legal holiday and a national furthers that objective. savings associations, or branch or bank located in that State or affected The OCC also is proposing a number agency would need to notify the OCC of part of the State may close or remain of changes to clarify and update the such temporary closure as soon as open unless the Comptroller directs emergency closing provisions of feasible. This provision would provide otherwise by written order. § 7.3000. First, the OCC is proposing to additional flexibility to OCC-regulated clarify that § 7.3000 also applies to institutions during emergency The OCC has implemented this Federal branches and agencies of foreign conditions and would codify similar statutory provision in 12 CFR 7.3000. banks. Although current § 7.3000 language currently included in the Specifically, § 7.3000(b) provides that applies to Federal branches and OCC’s Licensing Manual.150 when the Comptroller, a State, or a agencies pursuant to section 4(b) of the Seventh, the proposal clarifies in legally authorized State official declares International Banking Act, 12 U.S.C. § 7.3000(c) that a State legal holiday a day a legal holiday due to emergency 3102(b), the OCC believes it is may be for the entire State or part of the conditions, a national bank may appropriate to specify this application State, as indicated in 12 U.S.C. 95(b)(1). temporarily limit or suspend its in the rule.149 Eighth, as provided in the statute, the operations at its affected offices. Second, the proposal would provide proposal provides in § 7.3000(c) that the Alternatively, the bank may continue its that the Comptroller may declare ‘‘any Comptroller may by written order direct operations, unless the Comptroller day’’ a legal holiday, instead of ‘‘a day,’’ the affected institution to close or directs otherwise by written order. This to more accurately reflect the statutory remain open during a State legal holiday rule provides that emergency conditions language and to clarify that the declared for ceremonial reasons, as with include natural disasters and civil and Comptroller may declare more than one a State legal holiday declared due to an municipal emergencies, such as severe day due to the emergency condition as emergency. flooding or a power emergency declared a legal holiday. Finally, the proposed rule adds a new by a local power company or Third, the proposed rule would paragraph, § 7.3000(e), to provide a government requesting that businesses amend § 7.3000(b) to state that definition of ‘‘State’’ that is consistent in the affected area close. Section emergency conditions could be ‘‘caused with the definition in 12 U.S.C. 95(b)(2). 7.3000(c) states that a State or a legally by acts of nature or of man.’’ This In addition, the OCC is proposing a authorized State official may declare a amendment mirrors the language in 12 number of technical changes to § 7.3000. day a legal holiday for ceremonial U.S.C. 95(b)(1) and would clarify the The proposal would replace the word reasons and provides that when a State broad scope of possible emergency ‘‘country’’ with ‘‘United States’’ in the legal holiday is declared for ceremonial conditions that could justify a legal phrase describing affected geographic reasons, a national bank may choose to holiday. area to make this phrase more precise; remain open or to close. Section Fourth, the proposal updates the delete the superfluous citation to 12 7.3000(d) provides that a national bank types of emergency conditions listed in U.S.C. 95 in § 7.3000(b); and delete the should assure that all liabilities or other the rule to include disasters other than superfluous first sentence of current obligations under the applicable law natural disasters, public health or safety § 7.3000(c), which states that a State or due to the bank’s closing are satisfied, emergencies, and cyber threats or other a legally authorized State official may e.g., notice to depositors about funds unauthorized intrusions, and updates declare a day a legal holiday for availability pursuant to 12 CFR the list of examples to include ceremonial reasons. 229.13(g)(4). pandemics, terrorist attacks, and cyber- In proposing these changes, the OCC attacks on bank systems. is reorganizing § 7.3000(b) and (c) so There is no equivalent statute or Fifth, the proposal provides that the that all provisions relating to corresponding regulation for Federal Comptroller may issue a declaration of Comptroller declared legal holidays for savings associations. However, a former a legal holiday in anticipation of the emergency conditions are in § 7.3000(b) OTS regulation at 12 CFR 510.2(b) emergency condition, in addition to at and all provisions related to State permitted the OTS to waive or relax any the time of the emergency or soon declared legal holidays for emergency limitations pertaining to the operations thereafter. This codifies the current and ceremonial reasons are in of a Federal savings associations in any practice of the Comptroller in most § 7.3000(c). This reorganization more area affected by a determination by the cases, which permits national banks, clearly sets forth the standards for President of the United States that a Federal savings associations, and Comptroller and State declared legal major disaster or emergency had Federal branches and agencies to better holidays and corresponds better with occurred. Amending § 7.300 to include plan for the possible closing. the statutory text. Federal savings associations would Sixth, the proposal provides that in Section 7.3000 also provides, in clarify for these institutions how a legal the absence of a Comptroller declaration paragraph (a), that a national bank’s holiday is declared and the implications of a bank holiday, a national bank, board of directors should review its of a legal holiday declaration, as well as Federal savings associations, or Federal banking hours and, independently of provide consistency between national branch or agency may choose to any other bank, take appropriate actions bank and Federal savings association temporarily close offices in response to to establishing a schedule of its banking operations on legal holidays. We note hours. The OCC is proposing to update that the Comptroller is directed under 148 See 54 FR 49411, at 49456 (Nov. 30, 1989). this provision by replacing ‘‘banking section 4 of the HOLA (12 U.S.C. 149 As indicated previously in this preamble, hours’’ with ‘‘hours of operations for section 4(b) of the International Banking Act, 12 1463(a)(1)(A)) to provide for the ‘‘safe U.S.C. 3102(b), provides that the operations of a customers.’’ Furthermore, the OCC is and sound operation’’ of Federal savings foreign bank at a Federal branch or agency shall be proposing to include Federal savings associations.147 The OTS relied on this conducted with the same rights and privileges as a associations and Federal branches and HOLA authority when it issued national bank at the same location and shall be agencies in this provision. Because subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would Federal branches and agencies typically 147 See also 12 U.S.C. 1(a) (charging the OCC with apply under the National Bank Act to a national assuring the safety and soundness of institutions bank doing business at the same location. See also 150 See Comptroller’s Licensing Manual, Branch subject to its jurisdiction). 12 CFR 28.13. Closings (June 2017).

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do not have a board of directors, amendments and not general requests financial intermediation derivatives proposed § 7.3000(a) would provide that for changes.151 activities to include a new category of an equivalent person or committee for a underlying. § 7.1030. IV. Regulatory Analyses Federal branch or agency should review • State Corporate Governance— that entity’s operating hours and take A. Paperwork Reduction Act Requests for OCC’s staff position on the appropriate action to establish a Certain provisions of the proposed ability of national bank to engage in schedule of operating hours for rulemaking contain ‘‘collection of particular State corporate governance customers. information’’ requirements within the provision must include name, citations, discussion of similarly suited State Sharing National Bank or Federal meaning of the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501– banks, identification of Federal banking Savings Association Space and statutes and regulations, and analysis of Employees (§ 7.3001) 3521). In accordance with the requirements of the PRA, the OCC may consistency with statutes, regulations, Section 7.3001 permits national banks and safety and soundness. § 7.2000. not conduct or sponsor, and a • and Federal savings associations to lease respondent is not required to respond Indemnification of institution- excess space on bank or savings to, an information collection unless it affiliated parties—Administrative association premises to other displays a currently valid Office of proceeding or civil actions not initiated businesses, share space jointly held Management and Budget (OMB) control by a Federal banking agency—A written with other businesses, offer its services number. agreement that an IAP will reimburse in space owned by or leased to other The OCC reviewed the proposed the institution for any portion of non- businesses, and share employees when rulemaking and determined that it reimbursed indemnification that the IAP sharing space. The OCC proposes to add revises certain information collection is found not entitled to is required a cross-reference to redesignated requirements previously cleared by before advancing funds to an IAP. § 7.1024, National bank or Federal OMB under OMB Control No. 1557– Federal savings associations no longer savings association ownership of 0204. The OCC has submitted the required to provide OCC prior notice of property, in § 7.3001(a)(1) to clarify that indemnification. § 7.2014. revised information collection to OMB • the requirements of § 7.1024 apply to for review under section 3507(d) of the Issuing Stock in Certificate Form— the sharing of office space and PRA (44 U.S.C. 3507(d)) and section National banks must include certain employees pursuant to § 7.3001. 1320.11 of the OMB’s implementing information, signatures and seal when regulations (5 CFR 1320). issuing stock in certificate form. General Technical Changes § 7.2016. In addition to the technical changes Current Actions Title of Information Collection: Bank discussed above, the OCC proposes The information collection Activities and Operations. numerous technical changes throughout requirements are as follows: Frequency: Event generated. Affected Public: Businesses or other 12 CFR part 7. Specifically, the • Tax Equity Finance Transactions— for-profit. proposed rule would: Written requests are required to increase Estimated number of respondents: • the aggregate limit on tax equity finance Replace the word ‘‘shall’’ with 213. ‘‘must,’’ ‘‘will,’’ or other appropriate transactions. Prior written notification to OCC is required for each tax equity Total estimated annual burden: 586 language, which is the more current rule hours. writing convention for imposing an finance transaction. § 7.1025. • Payment Systems—Thirty (30) days Comments are invited on: obligation and is the recommended a. Whether the collections of advance written notice is required drafting style of the Federal Register; information are necessary for the proper before joining a payment system that • Uniformly capitalize the words performance of the agencies’ functions, would expose the institution to open- ‘‘State’’ and ‘‘Federal’’ in conformance including whether the information has end liability. An after-the-fact written with Federal Register drafting style; practical utility; notice must be filed within 30 days of • b. The accuracy or the estimate of the Replace the term ‘‘bank’’ and becoming a member of a payment burden of the information collections, ‘‘savings association’’ with ‘‘national system that does not expose the including the validity of the bank’’ or ‘‘Federal savings association,’’ institution to open-end liabilities with methodology and assumptions used; respectively, where appropriate; certain representations. Both notices • Clarify punctuation and update or c. Ways to enhance the quality, must include safety and soundness utility, and clarity of the information to conform spelling of various terms; and representations. § 7.1026. • • be collected; Conform paragraph heading style. Derivatives Activities—Thirty (30) d. Ways to minimize the burden of the days prior written notice is required III. Request for Comments information collections on respondents, before engaging in certain derivatives including through the use of automated The OCC requests comment on any hedging activities, expanding collection techniques or other forms of aspect of this proposal, in addition to derivatives hedging activities to include information technology; and those specific requests noted in the a new category of underlying, engaging e. Estimates of capital or startup costs SUPLEMENTARY INFORMATION. Further, the in certain customer-driven financial and costs of operation, maintenance, COVID 19 emergency has required intermediation derivatives activities, and purchase of services to provide banks in many cases to consider and expanding customer-driven information. changes to the way they do business and All comments will become a matter of may potentially result in longer term 151 As indicated previously in this Supplementary Information section, the OCC has issued an interim public record. Comments on aspects of changes in industry practices. The OCC final rule that amends 12 CFR 7.1001 and 7.1003 this notice that may affect reporting, requests comment on whether it should to provide for remote participation at shareholder recordkeeping, or disclosure consider other amendments to part 7 to and board of director meetings to allow national requirements and burden estimates address issues that may have arisen due banks to hold these meetings without violating social distancing restrictions imposed in response should be sent to the addresses listed in to the COVID–19 pandemic. If so, please to the COVID–19 emergency. See 85 FR 31943 (May the ADDRESSES section of this document. provide suggestions for specific 28, 2020). Written comments and

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recommendations for the information directors is limited. As a result, the depository institutions; and (2) the collection should be sent within 60 days proposed rule, if implemented, would benefits of the proposed rule. The OCC of publication of this notice of proposed not impose new mandates on more than requests comment on any administrative rulemaking to www.reginfo.gov/public/ a limited number of banks. Therefore, burdens that the proposed rule would do/PRAMain. Find this particular the OCC believes the costs associated place on depository institutions, information collection by selecting with the proposed rule, if any, would be including small depository institutions, ‘‘Currently under 30-day Review—Open minimal and thus the proposed rule and their customers, and the benefits of for Public Comments’’ or by using the would not have a significant economic the proposed rule that the OCC should search function. impact on any small OCC-supervised consider in determining the effective entities. For these reasons, the OCC B. Regulatory Flexibility Act date and administrative compliance certifies that, if adopted, the proposed requirements for a final rule. In general, the Regulatory Flexibility rule would not have a significant Act (RFA) (5 U.S.C. 601 et seq.) requires economic impact on a substantial List of Subjects an agency, in connection with a number of small entities supervised by 12 CFR Part 7 proposed rule, to prepare an Initial the OCC. Accordingly, an Initial Computer technology, Credit, Regulatory Flexibility Analysis Regulatory Flexibility Analysis is not Derivatives, Federal savings describing the impact of the rule on required. small entities (defined by the Small associations, Insurance, Investments, Business Administration for purposes of C. Unfunded Mandates Reform Act of Metals, National banks, Reporting and the RFA to include commercial banks 1995 recordkeeping requirements, Securities, and savings institutions with total assets The OCC has analyzed the proposed Security bonds of $600 million or less and trust rule under the factors in the Unfunded 12 CFR Part 145 companies with total assets of $41.5 Mandates Reform Act of 1995 (UMRA), million of less). However, under section 2 U.S.C. 1501 et seq. Under this analysis Electronic funds transfers, Public 605(b) of the RFA, this analysis is not the OCC considered whether the deposits, Federal savings associations required if an agency certifies that the proposed rule includes a Federal 12 CFR Part 160 rule would not have a significant mandate that may result in the Consumer protection, Investments, economic impact on a substantial expenditure by State, local, and tribal Manufactured homes, Mortgages, number of small entities and publishes governments, in the aggregate, or by the Reporting and recordkeeping its certification and a short explanatory private sector, of $100 million or more requirements, Savings associations, statement in the Federal Register along in any one year ($154 million as with its rule. adjusted annually for inflation). The Securities. The OCC currently supervises UMRA does not apply to regulations For the reasons set out in the approximately 1,185 institutions that incorporate requirements preamble, the OCC proposes to amend (commercial banks, trust companies, specifically set forth in law. 12 CFR chapter I as follows: Federal savings associations, and As discussed above, the proposed branches or agencies of foreign banks, rule, if implemented, would not impose PART 7—ACTIVITIES AND collectively banks), of which 782 are new mandates on more than a limited OPERATIONS 152 small entities. Because the rule number of banks. Therefore, the OCC ■ 1. The authority citation for part 7 is applies to all OCC-supervised concludes that if implemented, the revised to read as follows: depository institutions, the proposed proposed rule would not result in an rule would affect all small OCC- expenditure of $154 million or more Authority: 12 U.S.C. 1 et seq., 25b, 29, 71, supervised entities and thus, a annually by State, local, and tribal 71a, 92, 92a, 93, 93a, 95(b)(1), 371, 371d, 481, substantial number of them. However, 484, 1463, 1464, 1465, 1818, 1828(m), governments, or by the private sector. 3102(b), and 5412(b)(2)(B). almost all of the provisions in the final Therefore, the OCC finds that the rule clarify or codify existing proposed rule does not trigger the § 7.1000 [Redesignated] requirements, loosen existing UMRA cost threshold. Accordingly, the ■ 2. Redesignate § 7.1000 as § 7.1024. requirements, increase flexibility, or OCC has not prepared the written ■ 3. Add § 7.1000 to read as follows: reduce burden. One provision in the statement described in section 202 of proposed rule, § 7.2012, which would the UMRA. § 7.1000 Activities that are part of, or require a bank president to be a member incidental to, the business of banking. of the bank’s board of directors, could E. Riegle Community Development and (a) Purpose. This section identifies the impose a new requirement on banks Regulatory Improvement Act of 1994 criteria that the Office of the subject to the prior notice requirement Pursuant to section 302(a) of the Comptroller of the Currency (OCC) uses for any change in directors pursuant to Riegle Community Development and to determine whether an activity is 12 CFR 5.51. However, the number of Regulatory Improvement Act of 1994 authorized as part of, or incidental to, banks that are subject to this prior (RCDRIA), 12 U.S.C. 4802(a), in the business of banking under 12 U.S.C. notice requirement that do not currently determining the effective date and 24(Seventh) or other statutory authority. have a president serving on the board of administrative compliance requirements (b) Restrictions and conditions on for new regulations that impose activities. The OCC may determine that 152 Consistent with the General Principles of additional reporting, disclosure, or other activities are permissible under 12 Affiliation 13 CFR 121.103(a), the OCC counts the requirements on insured depository U.S.C. 24(Seventh) or other statutory assets of affiliated financial institutions when determining if it should classify an institution as a institutions, the OCC will consider, authority only if they are subject to small entity. The OCC used December 31, 2018, to consistent with principles of safety and standards or conditions designed to determine size because a ‘‘financial institution’s soundness and the public interest: (1) provide that the activities function as assets are determined by averaging the assets Any administrative burdens that the intended and are conducted safely and reported on its four quarterly financial statements for the preceding year.’’ See footnote 8 of the U.S. proposed rule would place on soundly, in accordance with other Small Business Administration’s Table of Size depository institutions, including small applicable statutes, regulations, or Standards. depository institutions and customers of supervisory policies.

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(c) Activities that are part of the § 7.1002 National bank acting as finder. ■ b. Adding the words ‘‘or Federal business of banking. (a) In general. *** savings association’’ after the words (1) An activity is permissible for * * * * * ‘‘national bank’’ wherever it appears in national banks as part of the business of (b) * * * the first and second sentences; and banking if the activity is authorized (8) Acting as an electronic finder ■ c. Adding the words ‘‘or savings under 12 U.S.C. 24(Seventh) or other pursuant to § 7.5002(a)(1). association’’ after the words ‘‘provided statutory authority. In determining * * * * * that the bank’’ in the second sentence. whether an activity that is not ■ 5. Amend § 7.1003 by: specifically included in 12 U.S.C. ■ a. Revising the section heading; § 7.1009 [Removed and Reserved] 24(Seventh) or other statutory authority ■ b. Revising the paragraph heading in ■ 9. Remove and reserve § 7.1009. is part of the business of banking, the paragraph (a); and ■ 10. Revise § 7.1010 to read as follows: OCC considers the following factors: ■ c. Adding paragraph (c). (i) Whether the activity is the The revisions and addition read as § 7.1010 Postal services by national banks functional equivalent to, or a logical follows: and Federal savings associations. outgrowth of, a recognized banking (a) In general. A national bank or activity; § 7.1003 Money lent at banking offices or Federal savings association may provide (ii) Whether the activity strengthens at facilities other than banking offices. postal services and receive income from the bank by benefiting its customers or (a) In general. *** those services. The services performed its business; * * * * * are those permitted under applicable (iii) Whether the activity involves (c) Services on equivalent terms to rules of the United States Postal Service. risks similar in nature to those already those offered customers of unrelated These may include meter stamping of assumed by banks; and banks. An operating subsidiary owned letters and packages and the sale of (iv) Whether the activity is authorized by a national bank may distribute loan related insurance. The national bank or for State-chartered banks. proceeds from its own funds or bank Federal savings association may (2) The weight accorded each factor funds directly to the borrower in person advertise, develop, and extend the set out in paragraph (c)(1) of this section at offices the operating subsidiary has services to attract customers to the depends on the facts and circumstances established without violating 12 U.S.C. institution. of each case. 36, 12 U.S.C. 81 and 12 CFR 5.30, (b) Postal regulations. A national bank (d) Activities that are incidental to the provided that the operating subsidiary or Federal savings association providing business of banking. provides similar services on postal services must do so in accordance (1) An activity is authorized for a substantially similar terms and with the rules and regulations of the national bank as incidental to the conditions to customers of unaffiliated United States Postal Service. The business of banking if it is convenient entities including unaffiliated banks. national bank or Federal savings or useful to an activity that is ■ 6. Revise 7.1004 to read as follows: association must keep the books and specifically authorized for national banks or to an activity that is otherwise § 7.1004 Establishment of a loan records of the postal services separate part of the business of banking. In production office by a national bank. from those of other banking operations. determining whether an activity is (a) In general. A national bank or its Under 39 U.S.C. 404 and any convenient or useful to such activities, operating subsidiary may engage in loan regulations issued under that statute, the OCC considers the following factors: production activities at a site other than the United States Postal Service may (i) Whether the activity facilitates the the main office or a branch of the bank. inspect the books and records pertaining production or delivery of a bank’s A national bank or its operating to the postal services. products or services, enhances the subsidiary may solicit loan customers, § 7.1012 [Amended] bank’s ability to sell or market its market loan products, assist persons in ■ products or services, or improves the 11. Amend § 7.1012 by: completing application forms and ■ effectiveness or efficiency of the bank’s related documents to obtain a loan, a. In paragraph (c)(1), removing the operations, in light of risks presented, originate and approve loans, make words ‘‘pick up from, and deliver’’ and innovations, strategies, techniques and credit decisions regarding a loan adding in its place the words ‘‘pick up new technologies for producing and application, and offer other lending- from and deliver’’; and ■ delivering financial products and related services such as loan b. In paragraph (c)(2)(vi), removing services; and information and applications at a loan the words ‘‘back office’’ and adding in (ii) Whether the activity enables the production office without violating 12 its place the words ‘‘back-office’’. ■ bank to use capacity acquired for its U.S.C. 36 and 12 U.S.C. 81, provided 12. Revise § 7.1015 to read as follows: banking operations or otherwise avoid that ‘‘money’’ is not deemed to be ‘‘lent’’ § 7.1015 National bank and Federal economic loss or waste. at that site within the meaning of savings association investments in small (2) The weight accorded each factor § 7.1003 and the site does not accept business investment companies. set out in paragraph (d)(1) of this section deposits or pay withdrawals. (a) National banks. A national bank depends on the facts and circumstances (b) Services of other persons. A may invest in a small business of each case. national bank may use the services of, investment company (SBIC) or in any ■ 4. Amend § 7.1002 by: and compensate, persons not employed ■ a. Revising the heading in paragraph entity established solely to invest in by the bank in its loan production SBICs, including purchasing the stock of (a); activities. ■ b. In paragraph (b)(6), removing the a SBIC, subject to appropriate capital word ‘‘and’’; § 7.1005 [Removed and Reserved] limitations (see e.g., 15 U.S.C. 682(b)), ■ c. In paragraph (b)(7)(ii), removing the ■ 7. Remove and reserve § 7.1005. and may receive the benefits of such period after ‘‘specific transaction’’ and stock ownership (e.g., stock dividends). adding in its place ‘‘; and’’; and § 7.1006 [Amended] The receipt and retention of a dividend d. Adding paragraph (b)(8). ■ 8. Amend § 7.1006 by: by a national bank from a SBIC in the The revision and addition reads as ■ a. Revising the section heading by form of stock of a corporate borrower of follows: removing the words ‘‘national bank’’; the SBIC is not a purchase of stock

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within the meaning of 12 U.S.C. presentation of specified documents and ■ a. In paragraph (d), removing the word 24(Seventh). not upon nondocumentary conditions or ‘‘shall’’ and adding in its place the word (b) Federal savings associations. resolution of questions of fact or law at ‘‘may’’ wherever it appears; and Federal savings associations may invest issue between the applicant and the ■ b. In paragraph (e), removing the word in a SBIC or in any entity established beneficiary. A national bank or Federal ‘‘shall’’ and adding in its place the word solely to invest in SBICs as provided in savings association may also confirm or ‘‘must’’ and removing the words ‘‘the 12 CFR 160.30. otherwise undertake to honor or effective date of this regulation’’ and (c) Qualifying SBIC. A national bank purchase specified documents upon adding in its place the words ‘‘April 1, or Federal savings association may their presentation under another 2018’’. invest in a SBIC that is either (1) already person’s independent undertaking organized and has obtained a license within the scope of such laws or rules. § 7.1023 [Amended] from the Small Business As used in this section, the term ■ 16. Amend § 7.1023 by: Administration, or (2) in the process of national bank includes Federal branches ■ a. In paragraph (c), removing the word being organized. and agencies of a foreign bank. ‘‘shall’’ and adding in its place the word ■ ‘‘may’’ and removing the words ‘‘federal 13. Amend § 7.1016 by: (b) * * * (1) * * * ■ a. Revising the section heading; savings association’’ and adding in its ■ b. Revising paragraph (a); * * * * * place the words ‘‘Federal savings ■ c. In paragraph (b)(1) introductory (iv) The national bank or Federal association’’; and text, removing the word ‘‘banks’’ savings association either should be ■ b. In paragraph (d): wherever it appears and adding in its fully collateralized or have a post-honor ■ i. Removing the word ‘‘shall’’ and place the words ‘‘national banks and right of reimbursement from the adding in its place the word ‘‘must’’; Federal savings associations’’; applicant or from another issuer of an ■ ii. Removing the words ‘‘the effective ■ d. Revising paragraph (b)(1)(iv); independent undertaking. Alternatively, date of this regulation’’ and adding in its ■ e. In paragraph (b)(2)(ii), removing the if the national bank’s or Federal savings place the words ‘‘April 1, 2018’’; and word ‘‘bank’s’’ and adding in its place association’s undertaking is to purchase ■ iii. Removing the words ‘‘federal the words ‘‘national bank’s or Federal documents of title, securities, or other savings association’’ and adding in its savings association’s’’; valuable documents, the bank or savings place the words ‘‘Federal savings ■ f. In paragraphs (b)(1)(iii)(B), association should obtain a first priority association’’. (1)(iii)(C), (2)(i), (2)(iii), (3), and (4), right to realize on the documents if the removing the word ‘‘bank’’ and adding bank or savings association is not § 7.1024 [Amended] in its place the words ‘‘national bank or otherwise to be reimbursed. ■ 17. Amend redesignated § 7.1024 by: Federal savings association’’; ■ * * * * * a. In paragraphs (c)(2)(i) and(ii), and ■ g. In paragraphs (b)(1)(iii)(B), (2)(iii) (d), removing the word ‘‘shall’’ and and (4), adding the words ‘‘or savings ■ 14. Revise § 7.1021 to read as follows: adding in its place the word ‘‘must’’ association’s’’ after the word ‘‘bank’s’’; § 7.1021 Financial literacy programs not wherever it appears; and and branches of national banks ■ b. In paragraph (e), removing the word ■ h. In paragraph(b)(2)(i), adding the ‘‘shall’’ and adding in its place the word words ‘‘or savings association’’ after the A financial literacy program is a ‘‘may’’. word ‘‘bank’’ wherever it appears. program the principal purpose of which ■ 18. Add § 7.1025 to read as follows: The revisions read as follows: is to be educational for members of the community. The premises of, or a § 7.1025 Tax equity finance transactions. § 7.1016 Independent undertakings issued facility used by, a school or other (a) Tax equity finance transactions. A by a national bank or Federal savings organization at which a national bank association to pay against documents. national bank or Federal savings participates in a financial literacy association may engage in a tax equity (a) In general. A national bank or program is not a branch for purposes of finance transaction pursuant to 12 Federal savings association may issue 12 U.S.C. 36 provided the bank does not U.S.C. 24(Seventh) and 1464 only if the and commit to issue letters of credit and establish and operate the premises or transaction is the functional equivalent other independent undertakings within facility. The OCC considers of a loan, as provided in paragraph (c) the scope of applicable laws or rules of establishment and operation in this of this section, and the transaction 1 practice recognized by law. Under such context on a case by case basis, satisfies applicable conditions in independent undertakings, the national considering the facts and circumstances. paragraph (d) of this section. bank’s or Federal savings association’s However, the premises or facility is not (b) Definitions. For purposes of this obligation to honor depends upon the a branch of the national bank if the safe section: harbor test in 12 CFR 7.1012(c)(2) (1) Tax equity finance transaction 1 Examples of such laws or rules of practice applicable to messenger services include: The applicable version of Article 5 of the means a transaction in which a national Uniform Commercial Code (UCC) (1962, as established by third parties is satisfied. bank or Federal savings association amended 1990) or revised Article 5 of the UCC (as The factor discussed in § 7.1012(c)(2)(i) provides equity financing to fund a amended 1995); the Uniform Customs and Practice can be met if bank employee project that generates tax credits and for Documentary Credits (International Chamber of participation in the financial literacy Commerce (ICC) Publication No. 600 or any other tax benefits and the use of an applicable prior version); the Supplements to UCP program consists of managing the equity-based structure allows the 500 & 600 for Electronic Presentation (eUCP v. 1.0, program or conducting or engaging in transfer of those credits and other tax 1.1, & 2.0) (Supplements to the Uniform Customs financial education activities provided benefits to the national bank or Federal and Practices for Documentary Credits for the school or other organization retains Electronic Presentation); International Standby savings association. Practices (ISP98) (ICC Publication No. 590); the control over the program and over the (2) Capital and surplus has the same United Nations Convention on Independent premises or facilities at which the meaning that this term has in 12 CFR Guarantees and Stand-by Letters of Credit (adopted program is held. 32.2. by the U.N. General Assembly in 1995 and signed (c) Functional equivalent of a loan. A by the U.S. in 1997); and the Uniform Rules for § 7.1022 [Amended] Bank-to-Bank Reimbursements Under Documentary tax equity finance transaction is the Credits (ICC Publication No. 725). ■ 15. Amend § 7.1022 by: functional equivalent of a loan if:

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(1) The structure of the transaction is (3) The national bank or Federal organization registered under the necessary for making the tax credits and savings association has provided written Commodity Exchange Act, a clearing other tax benefits available to the notification to the OCC prior to engaging agency registered under the Securities national bank or Federal savings in each tax equity finance transaction Exchange Act of 1934, or foreign association; that includes its evaluation of the risks organization that would be considered a (2) The transaction is of limited posed by the transaction; and derivatives clearing organization or tenure and is not indefinite, such as a (4) The national bank or Federal clearing agency were it operating in the limited investment interest required by savings association can identify, United States. law to obtain continuing tax benefits; measure, monitor, and control the (c) Notice requirements. (3) The tax benefits and other associated risks of its tax equity finance (1) Prior notice required. A national payments received by the national bank transaction activities individually and bank or Federal savings association or Federal savings association from the as a whole on an ongoing basis to ensure must provide written notice to its transaction repay the investment and that such activities are conducted in a appropriate OCC supervisory office at provide the implied rate of return; safe and sound manner. least 30 days prior to joining a payment (4) Consistent with paragraph (c)(3) of (e) Applicable legal requirements. The system that exposes it to open-ended this section, the national bank or transaction is subject to the substantive liability. (2) After-the-fact notice. A national Federal savings association does not legal requirements of a loan, including bank or Federal savings association rely on appreciation of value in the the lending limits prescribed by 12 must provide written notice to its project or property rights underlying the U.S.C. 84 and 12 U.S.C. 1464(u), as appropriate OCC supervisory office project for repayment; appropriate, as implemented by 12 CFR within 30 days of joining a payment (5) The national bank or Federal 32, and if the active investor or project system that does not expose it to open- savings association uses underwriting sponsor of the transaction is an affiliate ended liability. and credit approval criteria and of the bank, to the restrictions on transactions with affiliates prescribed by (d) Content of notice. standards that are substantially (1) In general. A notice required by 12 U.S.C. 371c and 371c–1, as equivalent to the underwriting and paragraph (c) of this section must credit approval criteria and standards implemented by 12 CFR 223. ■ 19. Add § 7.1026 to read as follows: include representations that the national used for a traditional commercial loan; bank or Federal savings association: (6) The national bank or Federal § 7.1026 Payment systems memberships. (i) Has complied with the safety and savings association is a passive investor (a) In general. National banks and soundness review requirements in in the transaction and is unable to direct Federal savings associations may paragraph (e)(1) of this section; and the affairs of the project company; and become members of payment systems, (ii) Will comply with the safety and (7) The national bank or Federal subject to the requirements of this soundness review and notification savings association appropriately section. requirements in paragraphs (e)(2) and accounts for the transaction initially and (b) Definitions. As used in this (3) of this section. on an ongoing basis and has section: (2) Payment system limits on liability documented contemporaneously its (1) Appropriate OCC supervisory or no liability. A notice filed under accounting assessment and conclusion. office means the OCC office that is paragraph (c)(2) of this section also must (d) Conditions on tax equity finance responsible for the supervision of a include a representation that either: (i) The rules of the payment system do transactions. A national bank or Federal national bank or Federal savings not impose liability for operational savings association may engage in tax association, as described in subpart A of equity finance transactions only if: losses on members; or 12 CFR part 4; (ii) The national bank’s or Federal (1) The national bank or Federal (2) Member includes a national bank savings association’s liability for savings association cannot control the or Federal savings association operational losses is limited by the rules sale of energy, if any, from the project; designated as a ‘‘member,’’ or of the payment system to specific and (2) The national bank or Federal ‘‘participant,’’ or other similar role by a appropriate limits that do not exceed savings association limits the total payment system, including by a dollar amount of tax equity finance the lower of: payment system that requires the (A) the legal lending limit under 12 transactions undertaken pursuant to this national bank or Federal savings CFR 32; or section to no more than five percent of association to share in operational (B) the limit set for the bank or its capital and surplus, unless the OCC losses or maintain a reserve with the savings association by the OCC. determines, by written approval of a payment system to offset potential (e) Safety and soundness procedures. written request by the national bank or liability for operational losses; (1) Prior to joining a payment system, Federal savings association to exceed (3) Open-ended liability refers to a national bank or Federal savings the five percent limit, that a higher liability for operational losses that is not association must: aggregate limit will not pose an capped under the rules of the payment (i) Identify and evaluate the risks unreasonable risk to the national bank system and includes indemnifications posed by membership in the payment or Federal savings association and that provided to third parties as a condition system, taking into account whether the the tax equity finance transactions in of membership in the payment system; liability of the bank or savings the national bank’s or Federal savings (4) Operational loss means a charge association is limited; and association’s portfolio will not be resulting from sources other than (ii) Ensure that it can measure, conducted in an unsafe or unsound defaults by other members of the monitor, and control the risks identified manner; provided, however, that in no payment system; and pursuant to paragraph (e)(1)(i) of this case may a national bank or Federal (5) Payment system means ‘‘financial section. savings association’s total dollar amount market utility’’ as defined in 12 U.S.C. (2) After joining a payment system, a of tax equity finance transactions 5462(6), wherever operating, and national bank or Federal savings undertaken pursuant to this section includes both retail and wholesale association must manage the risks of the exceed 15 percent of its capital and payment systems. Payment system does payment system on an ongoing basis. surplus; not include a derivatives clearing This ongoing risk management must:

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(i) Identify and evaluate the risks telephone, other similar electronic (b) Definitions. For purposes of this posed by membership in the payment devices, and drop boxes. An RSU may section: system, taking into account whether the be equipped with a telephone or tele- (1) Customer-driven means a liability of the bank or savings video device that allows contact with transaction is entered into for a association is limited; and bank personnel. An RSU is not a customer’s valid and independent (ii) Measure, monitor, and control the ‘‘branch’’ within the meaning of 12 business purpose (and a customer- risks identified pursuant to paragraph U.S.C. 36(j), and is not subject to State driven transaction does not include a (e)(2)(i) of this section. geographic or operational restrictions or transaction the principal purpose of (3) If the national bank or Federal licensing laws. which is to deliver to a national bank savings association identifies risks ■ 21. Add § 7.1028 to read as follows: assets that the national bank could not during the ongoing risk management invest in directly); § 7.1028 Establishment and operation of a (2) Perfectly-matched means two required by paragraph (e)(2) of this deposit production office by a national section that raise safety and soundness bank. back-to back derivatives transactions that offset risk with respect to all concerns, such as a material change to (a) In general. A national bank or its economic terms (e.g., amount, maturity, the bank’s liability or indemnification operating subsidiary may engage in duration, and underlying); responsibilities, the national bank or deposit production activities at a site (3) Portfolio-hedged means a portfolio Federal savings association must: other than the main office or a branch (i) Notify the appropriate OCC of derivatives transactions that are of the bank. A national bank or its supervisory office as soon as the safety hedged based on net unmatched operating subsidiary may solicit and soundness concern is identified; positions or exposures in the portfolio; deposits, provide information about and (4) Physical hedging or physically- deposit products, and assist persons in (ii) Take appropriate actions to hedged means holding title to or completing application forms and remediate the risk. acquiring ownership of an asset (for related documents to open a deposit (4) A national bank or Federal savings example, by warehouse receipt or book- account at a deposit production office association that believes its open-ended entry) solely to manage the risks arising (DPO). A DPO is not a branch within the liability is otherwise limited (e.g., by out of permissible customer-driven meaning of 12 U.S.C. 36(j) and 12 CFR negotiated agreements or laws of an derivatives transactions; 5.30(d)(1) so long as it does not receive appropriate jurisdiction) may consider (5) Physical settlement or physically- deposits, pay withdrawals, or make its liability to be limited for purposes of settled means accepting title to or loans. All deposit and withdrawal the reviews required by paragraphs acquiring ownership of an asset; transactions of a bank customer using a (e)(1) and (2) of this section so long as: (6) Transitory title transfer means (i) Prior to joining the payment DPO must be performed by the accepting and immediately system, the bank or savings association customer, either in person at the main relinquishing title to an asset; and obtains an independent legal opinion office or a branch office of the bank, or (7) Underlying means the reference that: by mail, electronic transfer, or a similar asset, rate, obligation, or index on which (A) Describes how the payment method of transfer. the payment obligation(s) between (b) Services of other persons. A system allocates liability for operational counterparties to a derivative national bank may use the services of, losses; and transaction is based. (B) Concludes the potential liability and compensate, persons not employed (c) In general. A national bank may for operational losses for the national by the bank in its deposit production engage in the following derivatives bank or Federal savings association is in activities. transactions after notice in accordance ■ 22. Add § 7.1029 to read as follows: fact limited to specific and appropriate with paragraph (d) of this section, as limits that do not exceed the lower of: § 7.1029 Combination of national bank applicable: (1) The legal lending limit under 12 loan production office, deposit production (1) Derivatives transactions with CFR 32; or office, and remote service unit. payments based on underlyings a (2) The limit set for the bank or A location at which a national bank national bank is permitted to purchase savings association by the OCC; and operates a loan production office (LPO), directly as an investment; (ii) There are no material changes to a deposit production office (DPO), and (2) Derivatives transactions with any the liability or indemnification a remote service unit (RSU) is not a underlying to hedge the risks arising requirements of the bank or savings ‘‘branch’’ within the meaning of 12 from bank-permissible activities; association since the issuance of the U.S.C. 36(j) by virtue of that (3) Derivatives transactions as a independent legal opinion. combination. Since an LPO, DPO, or financial intermediary with any ■ 20. Add § 7.1027 to read as follows: RSU is not, individually, a branch under underlying that are customer-driven, 12 U.S.C. 36(j), any combination of cash-settled, and either perfectly- § 7.1027 Establishment and operation of a matched or portfolio-hedged; remote service unit by a national bank. these facilities at one location does not create a branch. The RSU at such a (4) Derivatives transactions as a A remote service unit (RSU) is an combined location must be primarily financial intermediary with any automated or unstaffed facility, operated operated by the customer with at most underlying that are customer-driven, by a customer of a bank with at most delimited assistance from bank physically-settled by transitory title delimited assistance from bank personnel. transfer, and either perfectly-matched or personnel, that conducts banking ■ 23. Add § 7.1030 to read as follows: portfolio-hedged; and functions such as receiving deposits, (5) Derivatives transactions as a paying withdrawals, or lending money. § 7.1030 Permissible derivatives activities financial intermediary with any A national bank may establish and for national banks. underlying that are customer-driven, operate an RSU pursuant to 12 U.S.C. (a) Authority. This section is issued physically-settled (other than by 24(Seventh). An RSU includes an pursuant to 12 U.S.C. 24 (Seventh). A transitory title transfer), physically- automated teller machine, automated national bank may only engage in hedged, and either perfectly-matched or loan machine, automated device for derivatives transactions in accordance portfolio-hedged, and provided that (i) receiving deposits, personal computer, with the requirements of this section. the national bank does not take physical

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delivery of any commodity by receipt of percent of a class of voting securities of Requests must include the following physical quantities of the commodity on any issuer. information: bank premises and (ii) physical hedging (5) With respect to physical hedging (1) The name of the national bank; activities meet the requirements of involving commodities: (2) Citation to the State statutes or paragraph (e) of this section. (i) A national bank’s physical position regulations involved; (d) Notice procedure. (1) A national in a particular physical commodity (3) A discussion as to whether a bank must provide notice to its (including, as applicable, delivery point, similarly situated State bank is subject Examiner-in-Charge prior to engaging in purity, grade, chemical composition, to or may adopt the corporate any of the following with respect to weight, and size) must not be more that governance provision; derivatives transactions with payments 5 percent of the gross notional value of (4) Identification of all Federal based on underlyings that a national the bank’s derivatives that are in that banking statutes or regulations that are bank is not permitted to purchase particular physical commodity and on the same subject as, or otherwise directly as an investment: allow for physical settlement within 30 have a bearing on, the subject of the (i) Engaging in derivatives hedging days. Title to commodities acquired and proposed State corporate governance activities pursuant to paragraph (c)(2) of immediately sold by a transitory title provision; and this section; transfer does not count against the 5 (5) An analysis of how the proposed (ii) Expanding the bank’s derivatives percent limit; and practice is not inconsistent with hedging activities pursuant to paragraph (ii) The physical position must more applicable Federal statutes or (c)(2) of this section to include a new effectively reduce risk than a cash- regulations and is not inconsistent with category of underlying for derivatives settled hedge referencing the same bank safety and soundness. ■ transactions; commodity. 25. Add § 7.2001 to read as follows: (iii) Engaging in customer-driven ■ 24. Amend § 7.2000 by: ■ § 7.2001 National bank adoption of anti- financial intermediation derivatives a. Revising the section heading; takeover provisions. ■ b. Revising paragraph (a); activities pursuant to paragraphs (c)(3), ■ (a) In general. Pursuant to 12 CFR (4) or (5) of this section; and c. In paragraph (b): ■ i. Removing the word ‘‘procedures’’ 7.2000(b), a national bank may adopt (iv) Expanding the bank’s customer- wherever it appears and adding in its anti-takeover provisions included in driven financial intermediation place the word ‘‘provisions’’; State corporate governance law if the derivatives activities pursuant to ■ ii. Removing the words ‘‘the state in provisions are not inconsistent with paragraphs (c)(3), (4) or (5) of this which the main office of the bank’’ and Federal banking statutes or regulations section to include any new category of adding in its place the words ‘‘any State and not inconsistent with bank safety underlyings. in which the main office or any branch and soundness. (2) The notice pursuant to paragraph of the bank’’; (b) State anti-takeover provisions that (d)(1) of this section must be submitted ■ iii. Removing the words ‘‘the state in are not inconsistent with Federal in writing at least 30 days before the which the holding company of the banking statutes or regulations. State national bank commences the activity bank’’ and adding in its place the words anti-takeover provisions that are not and include the following information: ‘‘the State in which a holding company inconsistent with Federal banking (i) A detailed description of the of the bank’’; and statues or regulations include the proposed activity, including the ■ iv. Removing the word ‘‘shall’’ and following: relevant underlyings; adding in its place the word ‘‘must’’; (1) Restriction on business (ii) The anticipated start date of the ■ d. Redesignating paragraph (c) as combinations with interested activity; and paragraph (d) and revising it; and shareholders. State provisions that (iii) A detailed description of the ■ e. Adding a new paragraph (c). prohibit, or that permit the corporation bank’s risk management system The addition and revisions are set to prohibit in its certificate of (policies, processes, personnel, and forth below. incorporation or other governing control systems) for identifying, document, the corporation from measuring, monitoring, and controlling § 7.2000 Corporate governance. engaging in a business combination the risks of the activity. (a) In general. The corporate with an interested shareholder or any (e) Additional requirements for governance provisions in a national related entity for a specified period of physical hedging activities. (1) A bank’s articles of association and bylaws time from the date on which the national bank engaging in physical and the bank’s conduct of its corporate shareholder first becomes an interested hedging activities pursuant to paragraph governance affairs must comply with shareholder, subject to certain (c)(5) of this section must hold the applicable Federal banking statutes and exceptions such as board approval. An underlying solely to hedge risks arising regulations and safe and sound banking interested shareholder is one that owns from derivatives transactions originated practices. an amount of stock specified in the State by customers for the customers’ valid * * * * * provision. and independent business purposes. (c) Continued use of former holding (2) Poison pill. State provisions that (2) The physical hedging activities company State. A national bank that has provide, or that permit the corporation must offer a cost-effective means to elected to follow the corporate to provide in its certificate of hedge risks arising from permissible governance provisions of the law of the incorporation or other governing banking activities. State in which its holding company is document, that all the shareholders, (3) The national bank must not take incorporated may continue to use those other than the hostile acquiror, have the anticipatory or maintain residual provisions even if the bank is no longer right to purchase additional stock at a positions in the underlying except as controlled by that holding company. substantial discount upon the necessary for the orderly establishment (d) Request for OCC staff position. A occurrence of a triggering event. or unwinding of a hedging position. national bank may request the views of (3) Requiring all shareholder action to (4) The national bank must not OCC staff on the permissibility of a be taken at a meeting. State provisions acquire equity securities for hedging national bank’s adoption of a particular that provide, or that permit the purposes that constitute more than 5 State corporate governance provision. corporation to provide in its certificate

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of incorporation or other governing management is inconsistent with bank association. If the State corporate document, that all actions to be taken by safety and soundness if: governance law does not require the shareholders must occur at a meeting (i) The bank is less than adequately provision to be in the company’s articles and that shareholders may not take capitalized (as defined in 12 CFR part of incorporation, certificate of action by written consent. 6); incorporation, or similar document, but (4) Limits on shareholders’ authority (ii) The bank is in troubled condition allows it to be in the bylaws, then the to call special meetings. State provisions (as defined in 12 CFR 5.51(c)(7)); national bank must include the that provide, or that permit the (iii) Grounds for the appointment of a provision in either its articles of corporation to provide in its certificate receiver under 12 U.S.C. 191 are association or in its bylaws, provided, of incorporation or other governing present; or however, that if the State corporate document, that: (iv) The bank is otherwise in less than governance law requires shareholder (i) Only the board of directors, and satisfactory condition, as determined by approval for changes to the not the shareholders, have the right to the OCC. corporation’s bylaws, then the national call special meetings of the (2) Exception. Anti-takeover bank must include the provision in its shareholders; or provisions are not inconsistent with articles of association. (ii) If shareholders have the right to bank safety and soundness if, at the time call special meetings, a high percentage the bank adopts the provisions: § 7.2002 [Amended] of shareholders is needed to call the (i) The bank is not subject to any of ■ 26. Amend § 7.2002 by adding the meeting. the conditions in paragraph (d)(1) of this words ‘‘for shareholder voting’’ after the (5) Shareholder removal of a director section; and word ‘‘proxy’’ wherever it appears. only for cause. State provisions that (ii) The bank includes, in its articles ■ 27. Amend § 7.2005 by: provide, or that permit the corporation of association or its bylaws, as ■ a. Revising the heading in paragraph to provide in its certificate of applicable pursuant to paragraph (f) of (a); and incorporation or other governing this section, a limitation that would ■ b. Removing in paragraph (c)(3)(ii), document, that shareholders may make the provisions ineffective if: the word ‘‘shall’’ and adding in its place remove a director only for cause, and (A) The conditions in paragraph (d)(1) the word ‘‘must’’. not both for cause and without cause. of this section exist; or The revision reads as follows: (c) State anti-takeover provisions that (B) The OCC otherwise directs the are inconsistent with Federal banking bank not to follow the provision for § 7.2005 Ownership of stock necessary to statutes or regulations. The following supervisory reasons. qualify as director. State anti-takeover provisions are (e) Case-by-case review. (1) OCC (a) In general. *** inconsistent with Federal banking Determination. Based on the substance * * * * * statutes or regulations: of the provision or the individual (1) Supermajority voting circumstances of a national bank, the § 7.2006 [Amended] requirements. State provisions that OCC may determine that a State anti- ■ 28. Amend § 7.2006 in the first require, or that permit the corporation to takeover provision, as proposed or sentence by removing the word ‘‘shall’’ require in its certificate of incorporation adopted by a bank, is: and adding in its place the word or other governing document, a (i) Inconsistent with Federal banking ‘‘must’’. supermajority of the shareholders to statutes or regulations, notwithstanding § 7.2008 [Amended] approve specified matters are paragraph (b) of this section; or ■ inconsistent when applied to matters for (ii) Inconsistent with bank safety and 29. Amend § 7.2008 by: ■ which Federal banking statutes or soundness other than as provided in a. In paragraph (a), removing the word regulations specify the required level of paragraph (d) of this section. ‘‘state’’ and adding in its place the word shareholder approval. (2) Review. The OCC may initiate a ‘‘State’’; and ■ (2) Restrictions on a shareholder’s review, or a bank may request OCC b. In paragraph (b), removing the word right to vote all the shares it owns. State review pursuant to 12 CFR 7.2000(d), of ‘‘shall’’ and adding in its place the word provisions that prohibit, or that permit a State anti-takeover provision. ‘‘must’’ wherever it appears. the corporation in its certificate of (f) Method of adoption for anti- § 7.2009 [Amended] takeover provisions. (1) Board and incorporation or other governing ■ 30. Amend § 7.2009 by removing the shareholder approval. A national bank document to prohibit, a person from word ‘‘shall’’ and adding in its place the must follow the provisions for approval voting shares acquired that increase word ‘‘must’’. their percentage of ownership of the by the board of directors and approval company’s stock above a certain level of shareholders for the adoption of an § 7.2010 [Amended] are inconsistent when applied to anti-takeover provision in the State ■ 31. Amend § 7.2010 in the first shareholder votes governed by 12 U.S.C. corporate governance law it has elected sentence by removing the word ‘‘shall’’ 61. to follow. However, if the provision is and adding in its place the word (d) Bank safety and soundness. (1) In included in the bank’s articles of ‘‘must’’. general. Except as provided in association, the bank’s shareholders ■ 32. Revise § 7.2012 to read as follows: paragraph (d)(2) of this section, any must approve the amendment of the State corporate governance provision, articles pursuant to 12 U.S.C. 21a, even § 7.2012 President as director. including anti-takeover provisions, that if the State law does not require Pursuant to 12 U.S.C. 76, the person would render more difficult or approval by the shareholders. serving as, or in the function of, discourage an injection of capital by (2) Documentation. If the State president of a national bank, regardless purchase of bank stock, a merger, the corporate governance law requires the of title, must be a member of the board acquisition of the bank, a tender offer, anti-takeover provision to be in the of directors. A director other than the a proxy contest, the assumption of company’s articles of incorporation, person serving as, or in the function of, control by a holder of a large block of certificate of incorporation, or similar president may be elected chairman of the bank’s stock, or the removal of the document, the national bank must the board. incumbent board of directors or include the provision in its articles of ■ 33. Revise § 7.2014 to read as follows:

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§ 7.2014 Indemnification of institution- The revision and additions read as (b) Issuance of previously approved affiliated parties. follows: and authorized common stock. In (a) Indemnification under State law. compliance with 12 U.S.C. 57, a Subject to the limitations of paragraph § 7.2016 Restricting transfer of stock and national bank may issue common stock record dates; stock certificates. (b) of this section, a national bank or up to an amount previously approved Federal savings association may (a) Restricting transfer of stock and and authorized in the national bank’s indemnify an institution-affiliated party record dates. articles of association by holders of two- for damages and expenses, including the (b) Bank stock certificates. (1) A thirds of the national bank’s shares advancement of expenses and legal fees, national bank may prescribe the manner without obtaining additional in accordance with the law of the State in which its stock must be transferred in shareholder approval for each the bank or savings association has its bylaws or articles of association. A subsequent issuance within the designated for its corporate governance bank issuing stock in certificated form authorized amount. must comply with the requirements of pursuant to § 7.2000(b) (for national (c) Issuance, Repurchase, and 12 U.S.C. 52, including as to: banks), 12 CFR 5.21(j)(3)(iii) (for Federal Redemption of Preferred Stock Pursuant mutual savings associations), or 12 CFR (i) The name and location of the bank; (ii) The name of the holder of record to Certain Procedures. Subject to the 5.22(j)(2)(iii) (for Federal Stock savings requirements of 12 U.S.C. 51a and 59, a associations), provided such payments of the stock represented thereby; (iii) The number and class of shares national bank may adopt procedures to are consistent with safe and sound which the certificate represents; authorize the board of directors to issue, banking practices. The term (iv) If the bank issues more than one determine the terms of, repurchase, and ‘‘institution-affiliated party’’ has the class of stock, the respective rights, redeem one or more series of preferred same meaning as set forth at 12 U.S.C. preferences, privileges, voting rights, stock, if permitted by the corporate 1813(u). powers, restrictions, limitations, and governance provisions adopted by the (b) Administrative proceedings or civil qualifications of each class of stock bank under 12 CFR 7.2000. To satisfy actions initiated by Federal banking issued (unless incorporated by reference the shareholder approval requirements agencies. With respect to an to the articles of association); of 12 U.S.C. 51a and 59, the adoption of administrative proceeding or civil (v) Signatures of the president and such procedures must be approved by action initiated by any Federal banking cashier of the bank, or such other shareholders in advance through an agency, a national bank or Federal officers as the bylaws of the bank amendment to the national bank’s savings association may only make or provide; and articles of association. Any amendment agree to make indemnification payments (vi) The seal of the bank. to a national bank’s articles of to an institution-affiliated party that are (2) The requirements of paragraph association that authorizes both the reasonable and consistent with the (b)(1)(v) of this section may be met issuance and the repurchase and requirements of 12 U.S.C. 1828(k) and through the use of electronic means or redemption of shares must be approved the implementing regulations by facsimile. by holders of two-thirds of the national thereunder. bank’s shares. (c) Written agreement required for §§ 7.2017 through 7.2018 [Removed] (d) Share repurchase programs. advancement. Before advancing funds ■ 35. Remove §§ 7.2017 through 7.2018. Subject to the requirements of 12 U.S.C. to an institutional-affiliated party under 59, a national bank may establish a § 7.2020 [Removed] this section, a national bank or Federal program for the repurchase, from time to ■ savings association must obtain a 36. Remove § 7.2020. time, of the national bank’s common or written agreement that the institution- § 7.2022 [Amended] preferred stock, if permitted by the affiliated party will reimburse the bank ■ 37. Amend § 7.2022 by removing the corporate governance provisions or savings association, as appropriate, adopted by the bank under 12 CFR for any portion of that indemnification word ‘‘state’’ and adding in its place the word ‘‘State’’. 7.2000. To satisfy the shareholder that the institution-affiliated party is approval requirement of 12 U.S.C. 59, ultimately found not to be entitled to § 7.2024 [Amended] the repurchase program must be under 12 U.S.C. 1828(k) and the ■ 38. Amend § 7.2024 paragraphs (a) approved in advance by the holders of implementing regulations thereunder, and (c) by removing the word ‘‘shall’’ two-thirds of the national bank’s shares, except to the extent that the bank’s or and adding in its place the word ‘‘must’’ including through an amendment to the savings association’s expenses have wherever it appears. national bank’s articles of association been reimbursed by an insurance policy ■ 39. Add § 7.2025 to read as follows: that authorizes the board of directors to or fidelity bond. repurchase the national bank’s common (d) Insurance premiums. A national § 7.2025 Capital stock-related activities of or preferred stock from time to time bank or Federal savings association may a national bank. under board-determined parameters that provide for the payment of reasonable (a) In general. A national bank must can limit the frequency, type, aggregate premiums for insurance covering the obtain the necessary shareholder limit, or purchase price of repurchases. expenses, legal fees, and liability of approval required by 12 U.S.C. 51a, 57, (e) Preferred Stock Features. A institution-affiliated parties to the extent or 59 for any change in its permanent national bank’s preferred stock may be that the expenses, fees, or liability could capital. An increase or decrease in the cumulative or non-cumulative and may be indemnified under this section. amount of a national bank’s common or or may not have voting rights on one or ■ 34. Amend § 7.2016 by: preferred stock is a change in permanent more series. ■ a. Revising the section heading; capital subject to the notice and ■ 40. Revise the heading for subpart C ■ b. Redesignating paragraph (a) as approval requirements of 12 CFR 5.46 of this part to read as follows: paragraph (a)(1) and adding a paragraph and applicable law. A national bank heading to paragraph (a); may obtain the required shareholder Subpart C—National Bank and Federal ■ c. Redesignating paragraph (b) as approval of changes in permanent Savings Association Operations paragraph (a)(2); and capital, as provided in paragraphs (b), ■ d. Adding a new paragraph (b). (c), and (d) of this section. ■ 41. Revise § 7.3000 to read as follows:

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§ 7.3000 National bank and Federal banks, Federal savings associations, and § 160.120 [Removed] savings association banking hours and Federal branches or agencies or their ■ 50. Remove § 160.120. closings. affected offices may close their affected (a) Banking hours. The board of offices or remain open on such a State- Brian P. Brooks, directors of a national bank or Federal designated holiday, unless the Acting Comptroller of the Currency. savings association, or an equivalent Comptroller by written order directs [FR Doc. 2020–12435 Filed 7–6–20; 8:45 am] person or committee of a Federal branch otherwise. BILLING CODE 4810–33–P or agency, should review its hours of (d) Liability. A national bank, Federal operations for customers and, savings association, or Federal branch or independently of any other bank, agency should assure that all liabilities DEPARTMENT OF THE TREASURY savings association, or Federal branch or or other obligations under the agency, take appropriate action to applicable law due to its closing are Office of the Comptroller of the establish a schedule of operating hours satisfied. Currency for customers. (e) Definition. For the purpose of this (b) Emergency closings declared by subpart, the term ‘‘State’’ means any of 12 CFR Parts 7 and 155 the Comptroller. Pursuant to 12 U.S.C. the several States, the District of [Docket ID OCC–2019–0028] 95(b)(1) and 1463(a)(1)(A), the Columbia, the Commonwealth of Puerto Comptroller of the Currency Rico, the Northern Mariana Islands, RIN 1557–AE74 (Comptroller), may declare any day a Guam, the Virgin Islands, American legal holiday if emergency conditions National Bank and Federal Savings Samoa, the Trust Territory of the Pacific Association Digital Activities exist. That day is a legal holiday for Islands, or any other territory or national banks, Federal savings possession of the United States. AGENCY: Office of the Comptroller of the associations, and Federal branches or Currency. agencies in the affected geographic area § 7.3001 [Amended] ACTION: Advance notice of proposed (i.e., throughout the United States, in a ■ 42. Amend § 7.3001 by: rulemaking. State, or in part of a State), and national ■ a. In paragraph (a)(1), removing the banks, Federal savings associations, and words ‘‘Lease excess space’’ and adding SUMMARY: The Office of the Comptroller Federal branches and agencies may in its place the words ‘‘Consistent with of the Currency (OCC) is interested in temporarily limit or suspend operations § 7.1024 of this title, lease excess making sure it is aware of and at their affected offices, unless the space’’; understands the evolution of financial Comptroller by written order directs ■ b. In paragraph (c) introductory text, services, so it ensures the federal otherwise. Emergency conditions may removing the word ‘‘shall’’ and adding banking system continues to serve be caused by acts of nature or of man in its place the word ‘‘must’’; and consumers, businesses, and ■ and may include natural and other c. In paragraph (c)(3), removing the communities effectively. Further, disasters, public health or safety word ‘‘state’’ and adding in its place the national banks and Federal savings emergencies, civil and municipal word ‘‘State’’. associations (banks) must have a emergencies, and cyber threats or other regulatory and supervisory framework unauthorized intrusions (e.g., severe §§ 7.4003 through 7.4005 [Removed] ■ 43. Remove §§ 7.4003 through 7.4005. that enables banks to adapt to rapidly flooding, a pandemic, terrorism, a cyber- changing trends and technology attack on bank systems, or a power § 7.4010 [Amended] developments in the financial emergency declared by a local power ■ 44. Amend the section heading for marketplace to meet customers’ company or government requesting that evolving needs while continuing to businesses in the affected area close). § 7.4010 by removing the word ‘‘state’’ operate in a safe and sound manner. The The Comptroller may issue a and adding in its place the word Office of the Comptroller of the proclamation authorizing the emergency ‘‘State’’. Currency (OCC) is reviewing its closing in anticipation of the emergency § 7.5001 [Removed] regulations on bank digital activities to condition, at the time of the emergency ■ 45. Remove § 7.5001. ensure that its regulations continue to condition, or soon thereafter. In the evolve with developments in the absence of a Comptroller declaration of PART 145—FEDERAL SAVINGS industry. This advance notice of a bank holiday, a national bank, Federal ASSOCIATIONS—OPERATIONS proposed rulemaking (ANPR) solicits savings associations, or Federal branch public input as part of this review. or agency may choose to temporarily ■ 46. The authority citation for part 145 close offices in response to an continues to read as follows: DATES: Comments must be received by emergency condition. The national Authority: 12 U.S.C. 1462a, 1463, 1464, August 3, 2020. bank, Federal savings associations, or 1828, 5412(b)(2)(B). ADDRESSES: Commenters are encouraged Federal branch or agency should notify to submit comments through the Federal the OCC of such temporary closure as § 145.121 [Removed] eRulemaking Portal or email, if possible. soon as feasible. ■ 47. Remove § 145.121. Please use the title ‘‘National Bank and (c) Emergency and ceremonial Federal Savings Association Digital closings declared by a State or State PART 160—LENDING AND Activities’’ to facilitate the organization official. In the event a State or a legally INVESTMENT and distribution of the comments. You authorized State official declares any ■ 48. The authority citation for part 160 may submit comments by any of the day to be a legal holiday for emergency continues to read as follows: following methods: or ceremonial reasons in that State or • Federal eRulemaking Portal— Authority: 12 U.S.C. 1462a, 1463, 1464, part of the State, that same day is a legal 1467a, 1701j–3, 1828, 3803, 3806, Regulations.gov Classic or holiday for national banks, Federal 5412(b)(2)(B); 42 U.S.C. 4106. Regulations.gov Beta: Regulations.gov savings associations, and Federal Classic: Go to https:// branches or agencies or their offices in § 160.50 [Removed] www.regulations.gov/. Enter ‘‘Docket ID the affected geographic area. National ■ 49. Remove § 160.50. OCC–2019–0028’’ in the Search Box and

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click ‘‘Search.’’ Click on ‘‘Comment Folder’’ on the right side of the screen. transformed the financial industry, Now’’ to submit public comments. For Comments and supporting materials can including the channels through which help with submitting effective be viewed and filtered by clicking on products and services are delivered and comments please click on ‘‘View ‘‘View all documents and comments in the nature of the products and services Commenter’s Checklist.’’ Click on the this docket’’ and then using the filtering themselves. Fewer than fifteen years ‘‘Help’’ tab on the Regulations.gov home tools on the left side of the screen. Click ago, smart phones with slide-out page to get information on using on the ‘‘Help’’ tab on the keyboards and limited touchscreen Regulations.gov, including instructions Regulations.gov home page to get capability were newsworthy.1 Today, 49 for submitting public comments. information on using Regulations.gov. percent of Americans bank on their Regulations.gov Beta: Go to https:// The docket may be viewed after the phones,2 and 85 percent of American beta.regulations.gov/ or click ‘‘Visit close of the comment period in the same millennials use mobile banking.3 New Regulations.gov Site’’ from the manner as during the comment period. The first person-to-person (P2P) Regulations.gov Classic homepage. Regulations.gov Beta: Go to https:// platform for money transfer services was Enter ‘‘Docket ID OCC–2019–0028’’ in beta.regulations.gov/ or click ‘‘Visit established in 1998.4 Today, there are the Search Box and click ‘‘Search.’’ New Regulations.gov Site’’ from the countless P2P payment options, and Public comments can be submitted via Regulations.gov Classic homepage. many Americans regularly use P2P to the ‘‘Comment’’ box below the Enter ‘‘Docket ID OCC–2019–0028’’ in transfer funds.5 In 2003, Congress displayed document information or by the Search Box and click ‘‘Search.’’ authorized digital copies of checks to be clicking on the document title and then Click on the ‘‘Comments’’ tab. made and electronically processed.6 clicking the ‘‘Comment’’ box on the top- Comments can be viewed and filtered Today, remote deposit capture is the left side of the screen. For help with by clicking on the ‘‘Sort By’’ drop-down norm for many consumers.7 The first submitting effective comments please on the right side of the screen or the cryptocurrency was created in 2009; click on ‘‘Commenter’s Checklist.’’ For ‘‘Refine Results’’ options on the left side there are now over 1,000 rival assistance with the Regulations.gov Beta of the screen. Supporting materials can cryptocurrencies,8 and approximately site, please call (877) 378–5457 (toll be viewed by clicking on the eight percent of Americans own free) or (703) 454–9859 Monday–Friday, ‘‘Documents’’ tab and filtered by cryptocurrency.9 Today, artificial 9 a.m.–5p.m. ET or email regulations@ clicking on the ‘‘Sort By’’ drop-down on intelligence (AI) and machine learning, erulemakinghelpdesk.com. the right side of the screen or the biometrics, cloud computing, big data • Email: regs.comments@ ‘‘Refine Results’’ options on the left side and data analytics, and distributed occ.treas.gov. of the screen.’’ For assistance with the ledger and blockchain technology are • Mail: Chief Counsel’s Office, Regulations.gov Beta site, please call 1 Attention: Comment Processing, Office (877) 378–5457 (toll free) or (703) 454– Charles Arthur, The history of smartphones: of the Comptroller of the Currency, 400 Timeline, The Guardian (Jan. 24, 2012, 3:00 p.m.), 9859 Monday–Friday, 9 a.m.–5 p.m. ET https://www.theguardian.com/technology/2012/jan/ 7th Street SW, Suite 3E–218, or email regulations@ 24/smartphones-timeline. Washington, DC 20219. 2 Tech’s raid on the banks; Banking and • erulemakinghelpdesk.com. Hand Delivery/Courier: 400 7th The docket may be viewed after the technology, The Economist (May 4, 2019), https:// link.gale.com/apps/doc/A584205036/ Street SW, Suite 3E–218, Washington, close of the comment period in the same DC 20219. AONE?u=wash94865&sid=AONE&xid=0023c2e4. manner as during the comment period. 3 • Fax: (571) 465–4326. Irving Wladawsky-Berger, The Digital • Viewing Comments Personally: You Revolution Comes for Banking, The Wall Street Instructions: You must include may personally inspect comments at the Journal (June 28, 2019), https://blogs.wsj.com/cio/ ‘‘OCC’’ as the agency name and ‘‘Docket 2019/06/28/the-digital-revolution-comes-for- OCC, 400 7th Street SW, Washington, ID OCC–2019–0028’’ in your comment. banking/. DC 20219. For security reasons, the OCC 4 In general, the OCC will enter all Elizabeth Judd, Timeline: 180 years of banking requires that visitors make an technology, Independent Banker (Oct. 31, 2017), comments received into the docket and appointment to inspect comments. You https://independentbanker.org/2017/10/timeline- publish the comments on the may do so by calling (202) 649–6700 or, 180-years-of-banking-technology/. Regulations.gov website without 5 Id. See also Tom Groenfeldt, Real-Time Person- for persons who are deaf or hearing change, including any business or to-Person Payments Are On The Rise In The U.S. impaired, TTY, (202) 649–5597. Upon personal information provided such as Forbes (Feb. 8, 2019, 7:00 p.m.), https:// arrival, visitors will be required to www.forbes.com/sites/tomgroenfeldt/2019/02/08/ name and address information, email present valid government-issued photo real-time-person-to-person-payments-are-on-the- addresses, or phone numbers. rise-in-the-u-s-aite/#fcb030d609d0; Jill Cornfield, identification and submit to security Comments received, including Instant payment apps grow up. They’re not just for screening in order to inspect comments. attachments and other supporting millennials anymore, CNBC (July 14, 2018), https:// FOR FURTHER INFORMATION CONTACT: Beth www.cnbc.com/2018/07/12/instant-payment-is- materials, are part of the public record growing-up-its-not-just-for-millennials- and subject to public disclosure. Do not Knickerbocker, Chief Innovation Officer, anymore.html. include any information in your Office of Innovation, (202) 649–5200; 6 Check Clearing for the 21st Century Act, Public comment or supporting materials that Karen McSweeney, Special Counsel; Law 108–100, 117 Stat. 1177 (2003). 7 you consider confidential or Jason Almonte, Special Counsel; Colleen Morrison, Protect your bank from Matthew Tynan, Counsel; or Sarah remote deposit capture risks, Independent Banker inappropriate for public disclosure. (Sept. 1, 2019), https://independentbanker.org/ You may review comments and other Turney, Senior Attorney, Chief 2019/09/protect-your-bank-from-remote-deposit- related materials that pertain to this Counsel’s Office, (202) 649–5490, for capture-risks/. rulemaking action by any of the persons who are deaf or hearing 8 Bernard Marr, A Short History of Bitcoin and following methods: impaired, TTY, (202) 649–5597, Office Crypto Currency Everyone Should Read, Forbes • (Dec. 6, 2017, 12:28 a.m.), https://www.forbes.com/ Viewing Comments Electronically— of the Comptroller of the Currency, 400 sites/bernardmarr/2017/12/06/a-short-history-of- Regulations.gov Classic or 7th Street SW, Washington, DC 20219. bitcoin-and-crypto-currency-everyone-should-read/ Regulations.gov Beta: SUPPLEMENTARY INFORMATION: #328e28a63f27. Regulations.gov Classic: Go to https:// 9 Annie Nova, Just 8 percent of Americans are I. Introduction invested in cryptocurrencies, survey says, CNBC www.regulations.gov/. Enter ‘‘Docket ID (March 16, 2018, 11:48 a.m.), https:// OCC–2019–0028’’ in the Search box and Over the past two decades, www.cnbc.com/2018/03/16/why-just-8-percent-of- click ‘‘Search.’’ Click on ‘‘Open Docket technological advances have americans-are-invested-in-cryptocurrencies-.html.

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used commonly or are emerging in the throughout its history has helped means and facilities; (3) engaging in an banking sector. Even the language used facilitate the successful evolution of the electronic activity that is comprised of to describe these innovations is industry. The OCC has long understood several component activities (composite evolving, with the term ‘‘digital’’ now that the banking business is not frozen authority); (4) the sale of excess commonly used to encompass in time and agrees with the statement electronic capacity and by-products; (5) electronic, mobile, and other online made over forty years ago by the U.S. acting as digital certification authority; activities. Court of Appeals for the Ninth Circuit: (6) data processing; (7) correspondent These technological developments ‘‘the powers of national banks must be services; (8) the location of a national have led to a wide range of new banking construed so as to permit the use of new bank conducting electronic activities; products and services delivered through ways of conducting the very old (9) the location under 12 U.S.C. 85 of innovative and more efficient channels business of banking.’’ 10 Accordingly, national banks operating exclusively in response to evolving customer the OCC has sought to regulate banking through the internet; and (10) shared preferences. Back-office banking in ways that allow for the responsible electronic space. Separate regulations at operations have experienced significant creation or adoption of technological 12 CFR part 155 address (1) Federal changes as well. AI and machine advances and to establish a regulatory savings associations’ use of electronic learning play an increasing role, for and supervisory framework that allows means and facilities generally and (2) example, in fraud identification, banking to evolve, while ensuring that requirements for Federal savings transaction monitoring, and loan safety and soundness and the fair associations using electronic means and underwriting and monitoring. And treatment of customers is preserved. facilities. The regulations in part 155 technology is fueling advances in were initially issued in 1998 and II. Existing Regulatory Framework payments. In addition, technological substantively updated in 2001 and again innovations are helping banks comply For almost twenty years, OCC in 2017.15 with the complex regulatory framework regulations have specifically addressed Over this same period, the OCC has and enhance cybersecurity to more national banks’ digital activities. The responded on a case-by-case basis to effectively protect bank and customer agency initially issued regulations in industry requests for approval to engage data and privacy. More and more banks, 1996 that addressed data processing in innovative, technology-driven of all sizes and types, are entering into activities.11 In 2000, it published an banking activities. Such approvals in relationships with technology ANPR seeking public comment on how the 1990s covered internet applications companies that enable banks and the to revise its regulations to further (e.g., transactional websites, commercial technology companies to establish new facilitate national banks’ use of website hosting services, a virtual mall, delivery channels and business developing technology, noting that an electronic marketplace for non- practices and develop new products to ‘‘rapid developments in new financial products, and internet access meet the needs of consumers, technologies are causing banks to services), electronic payment systems businesses, and communities. These reevaluate existing delivery channels activities (e.g., electronic bill payment relationships facilitate banks’ ability to and business practices and to develop and presentment services, stored value reach new customers, better serve new products and services in order to systems, electronic data interchange existing customers, and take advantage reach new customers, better serve services, and prepaid alternate media of cost efficiencies, which help them to existing customers, and take advantage such as stamps and prepaid phone remain competitive in a changing of cost efficiencies.’’ 12 The comments cards), and other technology-based industry. submitted in response to that ANPR services (e.g., digital certification Along with the opportunities formed the basis of a final rule issued authority services and electronic presented by these technological in 2002 and updated in 2008.13 Today, correspondent banking services).16 More changes, there are new challenges and these regulations, at 12 CFR part 7, recently, the OCC issued a preliminary risks. Banks should adjust their business subpart E, address (1) electronic conditional approval for a full-service models and practices to a new financial activities that are part of or incidental to national bank with a nationwide marketplace and changing customer the business of banking; 14 (2) furnishing footprint that proposes to offer banking demands. Banks are in an environment of products and services by electronic products through mobile, online, and where they compete with non-bank phone-based banking channels.17 The entities that offer products and services 10 M & M Leasing Corp. v. Seattle First Nat. Bank, OCC also approved a request for that historically have only been offered 563 F.2d 1377, 1382 (9th Cir. 1977), cert. denied, confirmation that a national bank may 436 U.S. 956 (1978). by banks, while ensuring that their 11 61 FR 4849 (Feb. 9, 1996). participate as a funding participant in a activities are consistent with the 12 65 FR 4895 (Feb. 2, 2000). real-time payment system for small authority provided by a banking charter 13 67 FR 34992 (May 17, 2002) and 73 FR 22216 dollar, irrevocable payment services.18 and safe and sound banking practices. (Apr. 24, 2008). In 2015, the OCC launched an Banks also must comply with applicable 14 This provision, at 12 CFR 7.5001, identifies the initiative to better understand the role of criteria that the OCC uses to determine whether an laws and regulations, including those electronic activity is authorized for national banks innovation in financial services and to focused on consumer protection and as part of, or incidental to, the business of banking determine what actions the agency Bank Secrecy Act/anti-money under 12 U.S.C. 24(Seventh) or other statutory could take in response to this dynamic laundering (BSA/AML) compliance. authority. While this section details those criteria environment. The OCC subsequently in the context of electronic activities, the OCC uses And, importantly, advanced persistent the criteria to determine whether any activity is part implemented a ‘‘responsible threats require banks to pay constant of or incidental to the business of banking. To innovation’’ framework designed to and close attention to increasing confirm the broader applicability of the criteria cybersecurity risks. listed in § 7.5001, the OCC is proposing in a 15 63 FR 65673 (Nov. 30, 1998), 66 FR 12993 separate rulemaking to remove the word (Mar. 2, 2001), and 82 FR 8082 (Jan 23, 2017). Notwithstanding these challenges, the ‘‘electronic’’ from this section and move it to part 16 Federal banking system is well 7, subpart A, as new § 7.1027. These proposed Specific citations for these approvals are in acquainted with and well positioned for changes would better organize OCC rules and OCC’s 2000 ANPR. See supra note 12, at 4895–96, clarify that the criteria of this section may apply to fns. 4–6. change, which has been a hallmark of 17 any potential national bank activity, not just those Conditional Approval No. 1205 (Aug. 31, this system since its inception. The that are electronic in nature. There would be no 2018). OCC’s support of responsible innovation substantive effect as a result of this change. 18 Interpretive Letter No. 1157 (Nov. 12, 2017).

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ensure that national banks and Federal its regulatory framework in the context d. Are there digital activities that savings associations have a regulatory of technology and innovation. First, any banks offer, or wish to offer, as structure that is receptive to innovation regulation adopted should be correspondent services to its affiliates or and that the agency’s supervisory technology-neutral, so that products, other financial institutions that are not approach appropriately accounts for the services, and processes can evolve included or sufficiently addressed in 12 opportunities and risks of changing regardless of the changes in technology CFR part 7, subpart E, or in part 155? business models and new products, that enables them. Second, any If so, what are they? services, and processes.19 regulation should facilitate appropriate 4. What types of activities related to The OCC also established a dedicated levels of consumer protection and cryptocurrencies or cryptoassets are Office of Innovation that serves as a privacy, including features that ensure financial services companies or bank central point of contact for interested transparency and informed consent. customers engaged? To what extent does parties and a clearinghouse for Finally, regulations on digital activities customer engagement in crypto-related innovation-related matters. This Office should be principle-based, rather than activities impact banks and the banking works to increase OCC awareness and prescriptive, to enable effective industry? What are the barriers or understanding of industry trends and management of evolving risks and to obstacles, if any, to further adoption of issues, such as the use of AI and reduce the potential that the regulations crypto-related activities in the banking machine learning, payment quickly become outdated. industry? Are there specific activities developments, the evolution of lending, IV. Issues for Comment that should be addressed in regulatory and relationships between banks and guidance, including regulations? technology companies. The Office of The public is invited to respond to the 5. How is distributed ledger Innovation also assists both OCC- following questions and offer comments supervised banks and nonbanks with technology used, or potentially used, in or suggestions on any other banking banking activities (e.g., identity understanding the agency’s expectations issues related to digital activities, use of regarding safe and sound operations, verification, credit underwriting or technology, or innovation. The OCC is monitoring, payments processing, trade fair access to financial services, and fair not seeking comment on its authority to treatment of customers. finance, and records management)? Are issue a special purpose national bank there specific matters on this topic that III. Regulatory Review charter. should be clarified in regulatory 1. Considering the financial industry’s guidance, including regulations? As part of its on-going efforts to evolution, are the OCC’s legal standards remain responsive to the evolution of in part 7, subpart E, and part 155 6. How are AI techniques, including the Federal banking system, the OCC is sufficiently flexible and clear? Should machine learning, used or potentially undertaking a comprehensive review of the standards be revised to better reflect used in activities related to banking 20 12 CFR part 7, subpart E, and part 155. developments in the broader financial (e.g., credit underwriting or monitoring, The goals of this review are to evaluate services industry? If so, how? transaction monitoring, anti-money whether these regulations effectively 2. Do any of the legal standards in laundering or fraud detection, customer take into account the ongoing evolution part 7, subpart E, or part 155 create identification and due diligence of the financial services industry, unnecessary hurdles or burdens to the processes, trading and hedging promote economic growth and use of technological advances or activities, forecasting, and marketing)? opportunity and ensure that banks innovation in banking? Are there ways the banking industry could be, but is not, using AI because of operate in a safe and sound manner, 3. Are there digital banking activities issues such as regulatory complexity, provide fair access to financial services, or issues related to digital banking lack of transparency, audit and audit treat customers fairly, and comply with activities that the OCC does not address trail complexities, or other regulatory applicable laws and regulations. in part 7, subpart E, or part 155 that the As part of this review, the OCC invites barriers? Are there specific ways these OCC should address? If so, what are the public, including members of the issues could be addressed by the OCC? these activities or issues, and why and financial service and technology sectors Should the OCC provide regulatory how should the OCC address them? and consumer groups, to share their guidance on this use, including by a. Are there digital finders’ activities experiences and ideas. Based on the issuing regulations? comments received, the OCC may (i.e., activities that bring together buyers and sellers of financial and nonfinancial 7. What new payments technologies propose specific revisions to its rules, and processes should the OCC be aware on which it would again seek public products and services) in which financial services companies engage or of and what are the potential comment. It should be noted that certain implications of these technologies and principles guide the OCC’s approach to banks wish to engage that are not included or sufficiently addressed 12 processes for the banking industry? How CFR part 7, subpart E, or part 155? If so, are new payments technologies and 19 OCC, Recommendations and Decisions for processes facilitated or hindered by Implementing a Responsible Innovation Framework what are they? (2016), https://www.occ.treas.gov/topics/ b. Is there software that a bank existing regulatory frameworks? supervision-and-examination/responsible- produces, markets, or sells (or wishes to 8. What new or innovative tools do innovation/comments/recommendations-decisions- financial services companies use to for-implementing-a-responsible-innovation- produce, market, or sell) that is not framework.pdf. within the current scope of, or comply with applicable regulations and 20 As a companion to this ANPR, the OCC is sufficiently addressed in, 12 CFR part 7, supervisory expectations (i.e., separately issuing a Notice of Proposed subpart E, or part 155? If so, what type ‘‘regtech’’)? How does the OCC’s Rulemaking, published elsewhere in this issue of of software? regulatory approach enable or hinder the Federal Register as a separate document, that advancements in this area? proposes amendments to subparts A through D of c. Does the term ‘‘software,’’ as used Part 7 that would clarify and codify recent OCC in 12 CFR 7.5006, exclude a similar 9. Are there issues unique to smaller interpretations, integrate certain regulations for product or service that should be institutions regarding the use and national banks and Federal savings associations, implementation of innovative products, and update or eliminate outdated regulatory included in this section? If so, what is requirements that no longer reflect the modern the similar product or service, and why services, or processes that the OCC financial system. should it be included? should consider?

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10. What other changes to the 11. Are there issues the OCC should response to the COVID–19 pandemic, development and delivery of banking consider in light of changes in the such as social distancing? products and services for consumers, banking system that have occurred in Brian P. Brooks, businesses and communities should the OCC be aware of and consider? Acting Comptroller of the Currency. [FR Doc. 2020–13083 Filed 7–6–20; 8:45 am] BILLING CODE 4810–33–P

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Part IV

Department of Labor

Employee Benefits Security Administration 29 CFR Part 2550 Improving Investment Advice for Workers & Retirees; Proposed Rule

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DEPARTMENT OF LABOR the final exemption in the Federal comment, EBSA recommends that you Register. include your name and other contact Employee Benefits Security ADDRESSES: All written comments and information, but DO NOT submit Administration requests for a hearing concerning the information that you consider to be proposed class exemption should be confidential, or otherwise protected 29 CFR Part 2550 sent to the Office of Exemption (such as Social Security number or an [Application No. D–12011] Determinations through the Federal unlisted phone number), or confidential business information that you do not ZRIN 1210–ZA29 eRulemaking Portal and identified by Application No. D–12011: want publicly disclosed. However, if EBSA cannot read your comment due to Improving Investment Advice for Federal eRulemaking Portal: technical difficulties and cannot contact Workers & Retirees www.regulations.gov at Docket ID number: EBSA–2020–0003. Follow the you for clarification, EBSA might not be AGENCY: Employee Benefits Security instructions for submitting comments. able to consider your comment. Administration, U.S. Department of See SUPPLEMENTARY INFORMATION Additionally, the www.regulations.gov Labor. below for additional information website is an ‘‘anonymous access’’ ACTION: Notification of Proposed Class regarding comments. system, which means EBSA will not Exemption. FOR FURTHER INFORMATION CONTACT: know your identity or contact Susan Wilker, telephone (202) 693– information unless you provide it. If you SUMMARY: This document gives notice of 8557, or Erin Hesse, telephone (202) send an email directly to EBSA without a proposed class exemption from certain 693–8546, Office of Exemption going through www.regulations.gov, prohibited transaction restrictions of the Determinations, Employee Benefits your email address will be Employee Retirement Income Security Security Administration, U.S. automatically captured and included as Act of 1974, as amended (ERISA), and Department of Labor (these are not toll- part of the comment that is placed in the the Internal Revenue Code of 1986, as free numbers). public record and made available on the internet. amended (the Code). The prohibited SUPPLEMENTARY INFORMATION: transaction provisions of ERISA and the Background Code generally prohibit fiduciaries with Comment Instructions The Employee Retirement Income respect to employee benefit plans All comments and requests for a Security Act of 1974 (ERISA) section (Plans) and individual retirement hearing must be received by the end of 3(21)(A)(ii) provides, in relevant part, accounts and annuities (IRAs) from the comment period. Requests for a that a person is a fiduciary with respect engaging in self-dealing and receiving hearing must state the issues to be to a Plan to the extent he or she renders compensation from third parties in addressed and include a general investment advice for a fee or other connection with transactions involving description of the evidence to be compensation, direct or indirect, with the Plans and IRAs. The provisions also presented at the hearing. In light of the respect to any moneys or other property prohibit purchasing and selling current circumstances surrounding the of such Plan, or has any authority or investments with the Plans and IRAs COVID–19 pandemic caused by the responsibility to do so. Internal Revenue when the fiduciaries are acting on novel coronavirus which may result in Code (Code) section 4975(e)(3)(B) behalf of their own accounts (principal disruption to the receipt of comments includes a parallel provision that transactions). This proposed exemption by U.S. Mail or hand delivery/courier, defines a fiduciary of a Plan and an IRA. would allow investment advice persons are encouraged to submit all In 1975, the Department issued a fiduciaries under both ERISA and the comments electronically and not to regulation establishing a five-part test Code to receive compensation, follow with paper copies. The for fiduciary status under this provision including as a result of advice to roll comments and hearing requests will be of ERISA.1 over assets from a Plan to an IRA, and available for public inspection in the The Department’s 1975 to engage in principal transactions, that Public Disclosure Room of the regulation also applies to the definition would otherwise violate the prohibited of fiduciary in the Code, which is Employee Benefits Security 2 transaction provisions of ERISA and the Administration, U.S. Department of identical in its wording. Under the 1975 regulation, for advice Code. The exemption would apply to Labor, Room N–1513, 200 Constitution to constitute ‘‘investment advice,’’ a registered investment advisers, broker- Avenue NW, Washington, DC 20210; financial institution or investment dealers, banks, insurance companies, however, the Public Disclosure Room professional who is not a fiduciary and their employees, agents, and may be closed for all or a portion of the under another provision of the statute representatives that are investment comment period due to circumstances must—(1) render advice as to the value advice fiduciaries. The exemption surrounding the COVID–19 pandemic of securities or other property, or make would include protective conditions caused by the novel coronavirus. recommendations as to the advisability designed to safeguard the interests of Comments and hearing requests will of investing in, purchasing, or selling Plans, participants and beneficiaries, also be available online at securities or other property (2) on a and IRA owners. The new class www.regulations.gov, at Docket ID regular basis (3) pursuant to a mutual exemption would affect participants and number: EBSA–2020–0003 and agreement, arrangement, or beneficiaries of Plans, IRA owners, and www.dol.gov/ebsa, at no charge. fiduciaries with respect to such Plans Warning: All comments received will understanding with the Plan, Plan and IRAs. be included in the public record fiduciary or IRA owner that (4) the advice will serve as a primary basis for DATES: Written comments and requests without change and will be made investment decisions with respect to for a public hearing on the proposed available online at www.regulations.gov, Plan or IRA assets, and that (5) the class exemption must be submitted to including any personal information the Department within August 6, 2020. provided, unless the comment includes 1 29 CFR 2510.3–21(c)(1), 40 FR 50842 (October The Department proposes that the information claimed to be confidential 31, 1975). exemption, if granted, will be available or other information whose disclosure is 2 26 CFR 54.4975–9(c), 40 FR 50840 (October 31, 60 days after the date of publication of restricted by statute. If you submit a 1975).

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advice will be individualized based on investment advice fiduciaries.6 In the The exemption would provide the particular needs of the Plan or IRA. FAB, the Department stated it would not additional certainty regarding covered A financial institution or investment pursue prohibited transactions claims compensation arrangements and would professional that meets this five-part against investment advice fiduciaries avoid the complexity associated with a test, and receives a fee or other who worked diligently and in good faith financial institution relying on multiple compensation, direct or indirect, is an to comply with ‘‘Impartial Conduct exemptions when providing investment investment advice fiduciary under Standards’’ for transactions that would advice. ERISA and under the Code. have been exempted in the new The proposed exemption’s principles- Investment advice fiduciaries, like exemptions, or treat the fiduciaries as based approach is rooted in the other fiduciaries to Plans and IRAs, are violating the applicable prohibited Impartial Conduct Standards for subject to duties and liabilities transaction rules. The Impartial Conduct fiduciaries providing investment advice. established in Title I of ERISA (ERISA) Standards have three components: A The proposed exemption includes and Title II of ERISA (the Internal best interest standard; a reasonable additional conditions designed to Revenue Code or the Code). Under Title compensation standard; and a support the provision of investment I of ERISA, plan fiduciaries must act requirement to make no misleading advice that meets the Impartial Conduct prudently and with undivided loyalty to statements about investment Standards. This notice also sets forth the employee benefit plans and their transactions and other relevant matters. Department’s interpretation of the five- participants and beneficiaries. Although This proposal takes into consideration part test of investment advice fiduciary these statutory fiduciary duties are not the public correspondence and status and provides the Department’s in the Code, both ERISA and the Code comments received by the Department views on when advice to roll over Plan contain provisions forbidding since February 2017 and responds to assets to an IRA 8 could be considered fiduciaries from engaging in certain informal industry feedback seeking an fiduciary investment advice under specified ‘‘prohibited transactions,’’ administrative class exemption based on ERISA and the Code. involving Plans and IRAs, including FAB 2018–02. As noted in the FAB, Since 2018, other regulators have conflict of interest transactions.3 Under following the 2016 rulemaking many considered enhanced standards of these prohibited transaction provisions, financial institutions created and conduct for investment professionals as a fiduciary may not deal with the implemented compliance structures a method of addressing conflicts of income or assets of a Plan or IRA in his designed to ensure satisfaction of the interest. At the federal level, on June 5, or her own interest or for his or her own Impartial Conduct Standards. These 2019, the Securities and Exchange account, and a fiduciary may not receive parties were permitted to continue to Commission (SEC) finalized a regulatory payments from any party dealing with rely on those structures pending further package relating to conduct standards the Plan or IRA in connection with a guidance. Under the exemption, for broker-dealers and investment advisers. The package included transaction involving assets of the Plan financial institutions could continue Regulation Best Interest, which or IRA. The Department has authority to relying on those compliance structures establishes a best interest standard grant administrative exemptions from on a permanent basis, subject to the applicable to broker-dealers when the prohibited transaction provisions in additional conditions of the exemption, 4 making a recommendation of any ERISA and the Code. rather than changing course to begin securities transaction or investment In 2016, the Department finalized a complying with the Department’s other strategy involving securities to retail new regulation that would have existing exemptions for investment customers.9 The SEC also issued an replaced the 1975 regulation and it advice fiduciaries. In addition, the interpretation of the conduct standards granted new associated prohibited exemption would provide a defense to applicable to registered investment transaction exemptions. After that private litigation as well as enforcement rulemaking was vacated by the U.S. advisers.10 As part of the package, the action by the Department, while the SEC adopted new Form CRS, which Court of Appeals for the Fifth Circuit in FAB is limited to the latter. 2018,5 the Department issued Field requires broker-dealers and registered This new proposed exemption would investment advisers to provide retail Assistance Bulletin (FAB) 2018–02, a provide relief that is broader and more temporary enforcement policy providing flexible than the Department’s existing prohibited transaction relief to fiduciary to act as an agent in an agency cross prohibited transaction exemptions for transaction for a Plan or IRA and another party to investment advice fiduciaries. The the transaction and receive reasonable 3 ERISA section 406 and Code section 4975. Department’s existing exemptions compensation for effecting or executing the 4 ERISA section 408(a) and Code section transaction from the other party to the tranaction); 4975(c)(2). Reorganization Plan No. 4 of 1978 (5 generally provide relief for discrete, PTE 84–24 Class Exemption for Certain U.S.C. App. (2018)) generally transferred the specifically identified transactions, and Transactions Involving Insurance Agents and authority of the Secretary of the Treasury to grant they were not amended to clearly Brokers, Pension Consultants, Insurance administrative exemptions under Code section 4975 provide relief for the compensation Companies, Investment Companies and Investment to the Secretary of Labor. These provisions require 7 Company Principal Underwriters, 49 FR 13208 the Secretary to make the following findings before arrangements that developed over time. (Apr. 3, 1984) , as corrected, 49 FR 24819 (June 15, granting an administrative exemption: (i) The 1984), as amended, 71 FR 5887 (Feb. 3, 2006) exemption is administratively feasible; (ii) the 6 Available at www.dol.gov/agencies/ebsa/ (providing relief for the receipt of a sales exemption is in the interests of the Plans and IRAs employers-and-advisers/guidance/field-assistance- commission by an insurance agent or broker from and their participants and beneficiaries, and (iii) the bulletins/2018-02. The Impartial Conduct Standards an insurance company in connection with the exemption is protective of the rights of participants incorporated in the FAB were conditions of the new purchase, with plan assets, of an insurance or and beneficiaries of the Plans and IRAs. The exemptions granted in 2016. See Best Interest annuity contract). Department is proposing this new class exemption Contract Exemption, 81 FR 21002 (Apr. 8, 2016), as 8 For purposes of any rollover of assets between on its own motion pursuant to ERISA section 408(a) corrected at 81 FR 44773 (July 11, 2016). a Plan and an IRA described in this preamble, the and Code section 4975(c)(2), and in accordance 7 See e.g., PTE 86–128, Class Exemption for term ‘‘IRA’’ only includes an account or annuity with procedures set forth in 29 CFR part 2570, Securities Transactions involving Employee Benefit described in Code section 4975(e)(1)(B) or (C). subpart B (76 FR 66637 (October 27, 2011)). Plans and Broker-Dealers, 51 FR 41686 (Nov. 18, 9 Regulation Best Interest: The Broker-Dealer 5 Chamber of Commerce of the United States v. 1986), as amended, 67 FR 64137 (Oct. 17, Standard of Conduct, 84 FR 33318 (July 12, 2019) U.S. Department of Labor, 885 F.3d 360 (5th Cir. 2002)(providing relief for a fiduciary’s use of its (Regulation Best Interest Release). 2018). Elsewhere in this issue of the Federal authority to cause a Plan or IRA to pay a fee for 10 Commission Interpretation Regarding Standard Register, the Department is publishing a technical effecting or executing securities transactions to the of Conduct for Investment Advisers, 84 FR 33669 amendment related to the decision. fiduciary, as agent for the Plan or IRA, and for a (July 12, 2019) (SEC Fiduciary Interpretation).

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investors with a short relationship Description of the Proposed Exemption their affiliates 16 or related entities 17 to summary with specified information receive additional compensation violate (SEC Form CRS).11 As discussed in greater detail below, the prohibited transaction provisions State regulators and standards-setting the exemption proposed in this notice unless an exemption applies.18 bodies also have focused on conduct would be available to registered The proposed exemption would standards. The New York State investment advisers, broker-dealers, condition relief on the Investment Department of Financial Services has banks, and insurance companies Professional and Financial Institution amended its insurance regulations to (Financial Institutions) and their providing advice in accordance with the establish a best interest standard in individual employees, agents, and Impartial Conduct Standards. In connection with life insurance and representatives (Investment addition, the exemption would require annuity transactions.12 The Professionals) that provide fiduciary Financial Institutions to acknowledge in Massachusetts Securities Division has investment advice to Retirement writing their and their Investment amended its regulations for broker- Investors. The proposal defines Professionals’ fiduciary status under dealers to apply a fiduciary conduct Retirement Investors as Plan ERISA and the Code, as applicable, standard, under which broker-dealers participants and beneficiaries, IRA when providing investment advice to and their agents must ‘‘[m]ake the Retirement Investor, and to describe owners, and Plan and IRA fiduciaries.15 recommendations and provide in writing the services to be provided Under the exemption, Financial investment advice without regard to the and the Financial Institutions’ and financial or any other interest of any Institutions and Investment Investment Professionals’ material party other than the customer.’’ 13 The Professionals could receive a wide conflicts of interest. Finally, Financial National Association of Insurance variety of payments that would Institutions would be required to adopt Commissioners has revised its otherwise violate the prohibited policies and procedures prudently Suitability In Annuity Transactions transaction rules, including, but not designed to ensure compliance with the Model Regulation to clarify that all limited to, commissions, 12b–1 fees, Impartial Conduct Standards and recommendations by agents and trailing commissions, sales loads, mark- conduct a retrospective review of insurers must be in the best interest of ups and mark-downs, and revenue compliance. The exemption would also the consumer and that agents and sharing payments from investment provide, subject to additional carriers may not place their financial providers or third parties. The safeguards, relief for Financial interest ahead of in the consumer’s exemption’s relief would extend to Institutions to enter into principal interest in making the prohibited transactions arising as a transactions with Retirement Investors, recommendation.14 result of investment advice to roll over in which they purchase or sell certain The approach in this proposal assets from a Plan to an IRA, as detailed investments from their own accounts. includes Impartial Conduct Standards later in this proposed exemption. The The exemption requires Financial that are, in the Department’s view, exemption also would allow Financial Institutions to provide reasonable aligned with those of the other Institutions to engage in principal oversight of Investment Professionals regulators. In this way, the proposal is and to adopt a culture of compliance. transactions with Plans and IRAs in designed to promote regulatory The proposal further provides that which the Financial Institution efficiencies that might not otherwise Financial Institutions and Investment exist under the Department’s existing purchases or sells certain investments Professionals would be ineligible to rely administrative exemptions for from its own account. on the exemption if, within the previous investment advice fiduciaries. As noted above, ERISA and the Code 10 years, they were convicted of certain This proposed exemption is expected include broad prohibitions on self- crimes arising out of their provision of to be an Executive Order (E.O.) 13771 dealing. Absent an exemption, a investment advice to Retirement deregulatory action because it would fiduciary may not deal with the income Investors; they would also be ineligible allow investment advice fiduciaries or assets of a Plan or IRA in his or her if they engaged in systematic or with respect to Plans and IRAs to own interest or for his or her own receive compensation and engage in account, and a fiduciary may not receive 16 For purposes of the exemption, an affiliate would include: (1) Any person directly or indirectly certain principal transactions that payments from any party dealing with would otherwise be prohibited under through one or more intermediaries, controlling, the Plan or IRA in connection with a controlled by, or under common control with the ERISA and the Code. The temporary transaction involving assets of the Plan Investment Professional or Financial Institution. enforcement policy stated in FAB 2018– or IRA. As a result, fiduciaries who use (For this purpose, ‘‘control’’ would mean the power 02 remains in place. The Department is to exercise a controlling influence over the proposing this class exemption on its their authority to cause themselves or management or policies of a person other than an individual) (2) Any officer, director, partner, own motion, pursuant to ERISA section employee, or relative (as defined in ERISA section 408(a) and Code section 4975(c)(2), and 3(15)), of the Investment Professional or Financial in accordance with the procedures set Institution; and (3) Any corporation or partnership forth in 29 CFR part 2570 (76 FR 66637 of which the Investment Professional or Financial (October 27, 2011)). Institution is an officer, director, or partner. 17 For purposes of the exemption, related entities would include entities that are not affiliates, but in 11 Form CRS Relationship Summary; which the Investment Professional or Financial Amendments to Form ADV, 84 FR 33492 (July 12, Institution has an interest that may affect the 2019)(Form CRS Relationship Summary Release). 15 The term ‘‘Plan’’ is defined for purposes of the exercise of its best judgment as a fiduciary. 12 New York State Department of Financial 18 exemption as any employee benefit plan described As articulated in the Department’s regulations, Services Insurance Regulation 187, 11 NYCRR 224, in ERISA section 3(3) and any plan described in ‘‘a fiduciary may not use the authority, control, or First Amendment, effective August 1, 2019. responsibility which makes such a person a Code section 4975(e)(1)(A). The term ‘‘Individual 13 950 Mass. Code Regs. 12.204 & 12.207 as fiduciary to cause a plan to pay an additional fee amended effective March 6, 2020. Retirement Account’’ or ‘‘IRA’’ is defined as any to such fiduciary (or to a person in which such 14 NAIC Takes Action to Protect Annuity account or annuity described in Code section fiduciary has an interest which may affect the Consumers; available at https://content.naic.org/ 4975(e)(1)(B) through (F), including an Archer exercise of such fiduciary’s best judgment as a article/news_release_naic_takes_action_protect_ medical savings account, a health savings account, fiduciary) to provide a service.’’ 29 CFR 2550.408b– annuity_consumers.htm. and a Coverdell education savings account. 2(e)(1).

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intentional violation of the exemption’s making investment recommendations by transaction for a fiduciary to use its conditions or provided materially any insurance, banking, or securities authority to cause an affiliate or related misleading information to the law or regulatory authority (including entity to receive additional Department in relation to their conduct any self-regulatory organization). compensation.27 under the exemption. Ineligible parties The Department recognizes that Insurance companies commonly could rely on an otherwise available different types of Financial Institutions compensate insurance agents on a statutory exemption or apply for an have different business models, and the commission basis, which generally individual prohibited transaction proposal is drafted to apply flexibly to creates prohibited transactions when exemption from the Department. This these institutions.22 Broker-dealers, for insurance agents are investment advice targeted approach of allowing the example, provide a range of services to fiduciaries that provide investment Department to give special attention to Retirement Investors, ranging from advice to Retirement Investors in parties with certain criminal executing one-time transactions to connection with the sales. However, the convictions or with a history of providing personalized investment Department is aware that insurance egregious conduct with respect to recommendations, and they may be companies often sell insurance products compliance with the exemption should compensated on a transactional basis and fixed (including indexed) annuities provide significant protections for such as through commissions.23 If through different distribution channels Retirement Investors while preserving broker-dealers that are investment than broker-dealers and registered wide availability of investment advice advice fiduciaries with respect to investment advisers. While some arrangements and products. Retirement Investors provide insurance agents are employees of an The proposed exemption would not investment advice that affects the insurance company, other insurance expand Retirement Investors’ ability to amount of their compensation, they agents are independent, and work with enforce their rights in court or create must rely on an exemption. multiple insurance companies. The any new legal claims above and beyond Registered investment advisers, by proposed exemption would apply to those expressly authorized in ERISA, contrast, generally provide ongoing either of these business models. such as by requiring contracts and/or investment advice and services and are Insurance companies can supervise warranty provisions.19 commonly paid either an assets under independent insurance agents and they management fee or a fixed fee.24 If a Scope of Relief can also create oversight and registered investment adviser is an compliance systems through contracts Financial Institutions investment advice fiduciary that charges with intermediaries such as The exemption would be available to only a level fee that does not vary on the independent marketing organizations entities that satisfy the exemption’s basis of the investment advice provided, (IMOs), field marketing organizations definition of a ‘‘Financial Institution.’’ the registered investment adviser may (FMOs) or brokerage general agencies not violate the prohibited transaction (BGAs).28 Eligible parties can also The proposal limits the types of entities 25 that qualify as a Financial Institution to rules. However, if the registered continue to use relief under the existing SEC- and state-registered investment investment adviser provides investment exemption for insurance transactions, advisers, broker-dealers, insurance advice that causes itself to receive the PTE 84–24, as an alternative.29 The companies and banks.20 The proposed level fee, such as through advice to roll Department requests comment on these definition is based on the entities over Plan assets to an IRA, the fee suggestions, and whether there are identified in the statutory exemption for (including an ongoing management fee alternatives for oversight of investment paid with respect to the IRA) is advice fiduciaries who also serve as investment advice under ERISA section 26 408(b)(14) and Code section 4975(d)(17), prohibited under ERISA and the Code. insurance agents. which are subject to well-established Additionally, if a registered investment Finally, banks and similar institutions regulatory conditions and oversight.21 adviser that is an investment advice would be permitted to act as Financial Congress determined that this group of fiduciary is dually-registered as a Institutions under the exemption if they entities could prudently mitigate certain broker-dealer, the registered investment or their employees are investment conflicts of interest in their investment adviser may engage in a prohibited advice fiduciaries with respect to advice through adherence to tailored transaction if it recommends a Retirement Investors. The Department principles under the statutory transaction that increases the broker- seeks comment on whether banks and exemption. The Department takes a dealer’s compensation, such as for their employees provide investment similar approach here, and therefore is execution of securities transactions. As advice to Retirement Investors, and if proposing to include the same group of noted above, it is a prohibited so, whether the proposal needs entities. To fit within the definition of 22 Some of the Department’s existing prohibited 27 29 CFR 2550.408b–2(e)(1). Financial Institution, the firm must not transaction exemptions would also apply to the have been disqualified or barred from 28 Although the proposal’s definition of Financial transactions described in the next few paragraphs. Institution does not include insurance 23 Regulation Best Interest Release, 84 FR at intermediaries, the Department seeks comments on 19 ERISA section 502(a) provides the Secretary of 33319. whether the exemption should include insurance Labor and plan participants and beneficiaries with 24 Id. intermediaries as Financial Institutions for the a cause of action for fiduciary breaches and 25 As noted above, fiduciaries who use their recommendation of fixed (including indexed) prohibited transactions with respect to ERISA- authority to cause themselves or their affiliates or annuity contracts. If so, the Department asks parties covered Plans (but not IRAs). Code section 4975 related entities to receive additional compensation to provide a definition of the type of intermediary imposes a tax on disqualified persons participating violate the prohibited transaction provisions unless that should be permitted to operate as a Financial in a prohibited transaction involving Plans and an exemption applies. 29 CFR 2550.408b–2(e)(1). Institution and whether any additional protective IRAs (other than a fiduciary acting only as such). 26 The Department has long interpreted the conditions might be necessary with respect to the 20 The proposal includes ‘‘a bank or similar requirement of a fee to broadly cover ‘‘all fees or intermediary. financial institution supervised by the United States other compensation incident to the transaction in 29 Class Exemption for Certain Transactions or a state, or a savings association (as defined in which the investment advice to the plan has been Involving Insurance Agents and Brokers, Pension section 3(b)(1) of the Federal Deposit Insurance Act rendered or will be rendered.’’ Preamble to the Consultants, Insurance Companies, Investment (12 U.S.C. 1813(b)(1)).’’ The Department would Department’s 1975 Regulation, 40 FR 50842 Companies and Investment Company Principal interpret this definition to extend to credit unions. (October 31, 1975). The Department’s analysis of Underwriters, 49 FR 13208 (Apr. 3, 1984), as 21 ERISA section 408(g)(11)(A) and Code section the five-part test’s application to rollovers is corrected, 49 FR 24819 (June 15, 1984), as amended, 4975(f)(8)(J)(i). discussed below. 71 FR 5887 (Feb. 3, 2006).

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adjustment to address any unique reason of the provision of investment cover compensation received as a result aspects of their business models. The advice, who is an employee, of investment advice as to persons the Department seeks comment on other independent contractor, agent or Retirement Investor may hire to serve as business models not listed here, and representative of a Financial Institution, an investment advice provider or asset invites commenters to explain whether and who satisfies the federal and state manager. other business models would be regulatory and licensing requirements of Subsection (2) of the exemption appropriate to include in this insurance, banking, and securities laws would address the circumstance in framework. (including self-regulatory organizations) which the Financial Institution may, in The proposal also allows the with respect to the covered transaction, addition to providing investment definition of Financial Institution to as applicable. Similar to the definition advice, engage in a purchase or sale of expand after the exemption is finalized of Financial Institution, this definition an investment with a Retirement based upon subsequent grants of also includes a requirement that the Investor and receive a mark-up or a individual exemptions to additional Investment Professional has not been mark-down or similar payment on the entities that are investment advice disqualified from making investment transaction. The exemption would fiduciaries that meet the five-part test recommendations by any insurance, extend to both riskless principal seeking to be treated as covered banking, or securities law or regulatory transactions and Covered Principal Financial Institutions. Additional types authority (including any self-regulatory Transactions. A riskless principal of entities, such as IMOs, FMOs, or organization). transaction is a transaction in which a BGAs, that are investment advice Financial Institution, after having fiduciaries may separately apply for Covered Transactions received an order from a Retirement relief for the receipt of compensation in The proposal would permit Financial Investor to buy or sell an investment connection with the provision of Institutions and Investment product, purchases or sells the same investment advice on the same Professionals, and their affiliates and investment product for the Financial conditions as apply to the Financial related entities, to receive reasonable Institution’s own account to offset the Institutions covered by the proposed compensation as a result of providing contemporaneous transaction with the exemption.30 If the Department grants fiduciary investment advice. The Retirement Investor. Covered Principal an individual exemption under ERISA exemption specifically covers Transactions are defined in the section 408(a) and Code section 4975(c) compensation received as a result of exemption as principal transactions after the date this exemption is granted, investment advice to roll over assets involving certain specified types of the expanded definition of Financial from a Plan to an IRA. The exemption investments, discussed in more detail Institution in the individual exemption also would provide relief for a Financial below. Principal transactions that are would be added to this class exemption Institution to engage in the purchase or not riskless and that do not fall within so other entities that satisfy the sale of an asset in a riskless principal the definition of Covered Principal definition could similarly use the class transaction or a Covered Principal Transaction would not be covered by exemption. The Department requests Transaction, and receive a mark-up, the exemption. comment on the procedural aspects, mark-down, or other payment. The The following sections provide e.g., ensuring sufficient notice to exemption would provide relief from additional information on the proposal Retirement Investors, of this permitted ERISA section 406(a)(1)(A) and (D) and as it would apply to investment advice expansion of the definition. 406(b) and Code section 4975(c)(1)(A), to roll over ERISA-covered Plan assets The Department seeks comment on (D), (E), and (F).31 to an IRA, and as it would apply to the definition of Financial Institution in Subsection (1) of the exemption Covered Principal Transactions. would provide broad relief for Financial general and whether any other type of Rollovers entity should be included. The Institutions and Investment Department also seeks comment as to Professionals that are investment advice Amounts accrued in an ERISA- whether the definition is overly broad, fiduciaries to receive all forms of covered Plan can represent a lifetime of or whether Retirement Investors would reasonable compensation as a result of savings, and often comprise the largest benefit from a narrowed list of Financial their investment advice to Retirement sum of money a worker has at Institutions. In addition, the Department Investors. For example, it would cover retirement. Therefore, the decision to requests comment on whether the compensation received as a result of roll over ERISA-covered Plan assets to definition of Financial Institution is investment advice to acquire, hold, an IRA is potentially a very sufficiently broad to cover firms that dispose of, or exchange securities and consequential financial decision for a render advice with respect to other investments. It would also cover Retirement Investor. For example, investments in Health Savings Accounts compensation received as a result of Retirement Investors may incur (HSA), and about the extent to which investment advice to take a distribution transaction costs associated with Plan participants receive investment from a Plan or to roll over the assets to moving the assets into new investments advice in connection with such an IRA, or from investment advice and accounts, and, because of the loss accounts. regarding other similar transactions of economies of scale, the cost of including (but not limited to) rollovers investing through an IRA may be higher Investment Professionals from one Plan to another Plan, one IRA than through a Plan.32 Retirement As defined in the proposal, an to another IRA, or from one type of Investment Professional is an individual account to another account (e.g., from a 32 See, e.g., ‘‘IRA Investors Are Concentrated in commission-based account to a fee- Lower-Cost Mutual Funds’’ (Aug. 8, 2018), available who is a fiduciary of a Plan or IRA by at https://www.ici.org/viewpoints/view_18_ira_ based account). The exemption would expenses_fees (‘‘The data show that 401(k) investors 30 Exemption relief for an insurance intermediary incur lower expense ratios in their mutual fund would only be required if the intermediary is an 31 The proposal does not include relief from holdings than IRA mutual fund investors. One investment advice fiduciary under the applicable ERISA section 406(a)(1)(C) and Code section reason for this is economies of scale, as many regulations. An exemption is not necessary for an 4975(c)(1)(C). The statutory exemptions, ERISA employer plans aggregate the savings of hundreds insurance intermediary or its insurance agents who section 408(b)(2) and Code section 4975(d)(2) or thousands of workers, and often carry large conduct sales transactions and are not fiduciaries provide this necessary relief for Plan or IRA service average account balances, which are more cost- under ERISA or the Code. providers, subject the applicable conditions. effective to service. In addition, employers that

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Investors who roll out of ERISA-covered which suggested that advice to roll account pension plans.37 The Plans also lose important ERISA assets out of a Plan did not generally Department also recognizes that advice protections, including the benefit of a constitute investment advice. The to roll over Plan assets can occur as part Plan fiduciary representing their Department believes that the analysis in of an ongoing relationship or an interests in selecting a menu of the Deseret Letter was incorrect and that anticipated ongoing relationship that an investment options or structuring advice to take a distribution of assets individual enjoys with his or her advice investment advice relationships, and the from an ERISA-covered Plan is actually provider. For example, in circumstances statutory causes of action to protect advice to sell, withdraw, or transfer in which the advice provider has been their interests. Retirement Investors who investment assets currently held in the giving financial advice to the individual are retirees may not have the ability to Plan. A recommendation to roll assets about investing in, purchasing, or earn additional amounts to offset any out of a Plan is necessarily a selling securities or other financial costs or losses. recommendation to liquidate or transfer instruments, the advice to roll assets out Rollovers from ERISA-covered Plans the Plan’s property interest in the of a Plan is part of an ongoing advice to IRAs were expected to approach $2.4 affected assets, the participant’s relationship that satisfies the ‘‘regular trillion cumulatively from 2016 through associated property interest in the Plan basis’’ requirement. Similarly, advice to 2020.33 These large sums of money investments, and the fiduciary oversight roll assets out of the Plan into an IRA eligible for rollover represent a structure that applies to the assets. where the advice provider will be significant revenue source for Typically the assets, fees, asset regularly giving financial advice investment advice providers. A firm that management structure, investment regarding the IRA in the course of a recommends a rollover to a Retirement options, and investment service options more lengthy financial relationship Investor can generally expect to earn all change with the decision to roll would be the start of an advice transaction-based compensation such as money out of the Plan. Accordingly, the relationship that satisfies the ‘‘regular commissions, or an ongoing advisory better view is that a recommendation to basis’’ requirement. In these scenarios, fee, from the IRA, but may or may not roll assets out of a Plan is advice with there is advice to the Plan—meaning the earn compensation if the assets remain respect to moneys or other property of Plan participant or beneficiary—on a in the Plan. the Plan. Moreover, a distribution regular basis. The Department is In light of potential conflicts of recommendation commonly involves disinclined to propose an exemption interest related to rollovers from Plans either advice to change specific that would artificially exclude rollover to IRAs, ERISA and the Code prohibit an investments in the Plan or to change advice from investment advice when investment advice fiduciary from fees and services directly affecting the that would be contrary to the parties’ receiving fees resulting from investment return on those investments.35 course of dealing and expectations. And advice to Plan participants to roll over All prongs of the five-part test must be it is more than reasonable, as discussed assets from a Plan to an IRA, unless an satisfied for the investment advice below, that the advice provider would exemption applies. The proposed provider to be a fiduciary within the anticipate that advice about rolling over exemption would provide relief, as meaning of the regulatory definition, Plan assets would be ‘‘a primary basis needed, for this prohibited transaction, including the ‘‘regular basis’’ prong and for [those] investment decisions.’’ if the Financial Institution and the prongs requiring the advice to be This interpretation would both align Investment Professional provide provided pursuant to a ‘‘mutual’’ the Department’s approach with other investment advice that satisfies the agreement, arrangement, or regulators and protect Plan participants and beneficiaries under today’s market Impartial Conduct Standards and they understanding that the advice will serve practices, including the increasing comply with the other applicable as ‘‘a primary basis’’ for investment prevalence of 401(k) plans and self- conditions discussed below.34 In decisions. As discussed below, these directed accounts. Numerous sources particular, the Financial Institution inquiries will be informed by all the acknowledge that a common purpose of would be required to document the surrounding facts and circumstances. advice to roll over Plan assets is to reasons that the advice to roll over was The Department acknowledges that establish an ongoing relationship in in the Retirement Investor’s best advice to take a distribution from a Plan which advice is provided on a regular interest. In addition, investment advice and roll over the assets may be an basis outside of the Plan, in return for fiduciaries under Title I of ERISA would isolated and independent transaction remain subject to the fiduciary duties a fee or other compensation. For that would fail to meet the regular basis example, in a 2013 notice reminding imposed by section 404 of that statute. 36 prong. However, the Department firms of their responsibilities regarding In determining the fiduciary status of believes that whether advice to roll over an investment advice provider in this IRA rollovers, the Financial Industry Plan assets to an IRA satisfies the Regulatory Authority (FINRA) stated context, the Department does not intend regular-basis prong of the five-part test to apply the analysis in Advisory that ‘‘a financial adviser has an depends on the surrounding facts and economic incentive to encourage an Opinion 2005–23A (the Deseret Letter), circumstances. The Department has long investor to roll Plan assets into an IRA interpreted advice to a Plan to include that he will represent as either a broker- sponsor 401(k) plans may defray some of the costs advice to participants and beneficiaries of running the plan, enabling the sponsor to select dealer or an investment adviser lower-cost funds (or fund share classes) for the in participant-directed individual representative.’’ 38 Similarly, in 2011, plan.’’) the U.S. Government Accountability 33 Cerulli Associates, ‘‘U.S. Retirement Markets 35 The SEC and FINRA have each recognized that Office (GAO) discussed the practice of 2019.’’ recommendations to roll over Plan assets to an IRA cross-selling, in which 401(k) service 34 The exemption would also provide relief for will almost always involve a securities transaction. investment advice fiduciaries under either ERISA or See Regulation Best Interest Release, 84 FR at providers sell Plan participants the Code to receive compensation for advice to roll 33339; FINRA Regulatory Notice 13–45 Rollovers to products and services outside of their Plan assets to another Plan, to roll IRA assets to Individual Retirement Accounts (December 2013), Plans, including IRA rollovers. GAO another IRA or to a Plan, and to transfer assets from available at https://www.finra.org/sites/default/ reported that industry professionals said one type of account to another, all limited to the files/NoticeDocument/p418695.pdf. extent such rollovers are permitted under law. The 36 Merely executing a sales transaction at the analysis set forth in this section will apply as customer’s request also does not confer fiduciary 37 Interpretive Bulletin 96–1, 29 CFR 2509.96–1. relevant to those transactions as well. status. 38 FINRA Regulatory Notice 13–45.

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‘‘cross-selling IRA rollovers to one-time sale of an insurance product, Principal Transactions participants, in particular, is an does not by itself confer fiduciary status Principal transactions involve the important source of income for service under ERISA or the Code, even if purchase from, or sale to, a Plan or IRA, 39 providers.’’ accompanied by a recommendation that of an investment, on behalf of the Therefore, the regular basis prong of the product is well-suited to the Financial Institution’s own account or the five-part test would be satisfied investor and would be a valuable the account of a person directly or when an entity with a pre-existing 41 purchase. indirectly, through one or more advice relationship with the Retirement In addition to satisfying the five-part intermediaries, controlling, controlled Investor advises the Retirement Investor test, a person must receive a fee or other by, or under common control with the to roll over assets from a Plan to an IRA. Financial Institution. Because an Similarly, for an investment advice compensation to be an investment investment advice fiduciary engaging in provider who establishes a new advice fiduciary. The Department has a principal transaction is on both sides relationship with a Plan participant and long interpreted this requirement of the transaction, the firm has a clear advises a rollover of assets from the Plan broadly to cover ‘‘all fees or other to an IRA, the rollover recommendation compensation incident to the conflict. In addition, the securities may be seen as the first step in an transaction in which the investment typically traded in principal ongoing advice relationship that could advice to the plan has been rendered or transactions often lack pre-trade price 42 satisfy the regular basis prong of the will be rendered.’’ The Department transparency and Retirement Investors five-part test depending on the facts and previously noted that ‘‘this may include, may, therefore, have difficulty circumstances.40 for example, brokerage commissions, evaluating the fairness of a particular Further, the determination of whether mutual fund sales commissions, and principal transaction. These there is a mutual agreement, insurance sales commissions.’’ 43 In the investments also can be associated with arrangement, or understanding that the rollover context, fees and compensation low liquidity, low transparency, and the investment advice will serve as a received from transactions involving possible incentive to sell unwanted primary basis for investment decisions rollover assets would be incident to the investments held by the Financial is appropriately based on the reasonable advice to take a distribution from the Institution. understanding of each of the parties, if Plan and to roll over the assets to an Consistent with the Department’s no mutual agreement or arrangement is IRA. If, under the above analysis, advice historical approach to prohibited demonstrated. Written statements to roll over Plan assets to an IRA is transaction exemptions for fiduciaries, disclaiming a mutual understanding or fiduciary investment advice under this proposal includes relief for forbidding reliance on the advice as a ERISA, the fiduciary duties of prudence principal transactions that is limited in primary basis for investment decisions and loyalty would apply to the initial scope and subject to additional are not determinative, although such instance of advice to take the conditions, as set forth in the definition statements are appropriately considered distribution and to roll over the assets. of Covered Principal Transactions, in determining whether a mutual Fiduciary investment advice concerning described below. Importantly, certain understanding exists. investment of the rollover assets and transactions would not be considered More generally, the Department ongoing management of the assets, once principal transactions for purposes of emphasizes that the five-part test does distributed from the Plan into the IRA, the exemption, and so could occur not look at whether the advice serves as would be subject to obligations in the under the more general conditions. This ‘‘the’’ primary basis of investment Code. For example, a broker-dealer who includes the sale of an insurance or decisions, but whether it serves as ‘‘a’’ satisfies the five-part test with respect to annuity contract, or a mutual fund primary basis. When financial service a Retirement Investor, advises that transaction. professionals make recommendations to Retirement Investor to move his or her Principal transactions that are a Retirement Investor, particularly assets from a Plan to an IRA, and ‘‘riskless principal transactions’’ would pursuant to a best interest standard such receives any fees or compensation be covered under the exemption as well, as the one in the SEC’s Regulation Best incident to distributing those assets, subject to the general conditions. A Interest, or another requirement to will be a fiduciary subject to ERISA, riskless principal transaction is a provide advice based on the including section 404, with respect to transaction in which a Financial individualized needs of the Retirement the advice regarding the rollover. Institution, after having received an order from a Retirement Investor to buy Investor, the parties typically should The Department requests comment on or sell an investment product, purchases reasonably understand that the advice all aspects of this part of its proposal. or sells the same investment product in will serve as at least a primary basis for For instance: Are there other rollover a contemporaneous transaction for the the investment decision. By contrast, a scenarios that are not clear and which Financial Institution’s own account to one-time sales transaction, such as the the Department should address? Does offset the transaction with the the discussion above reflect real-world 39 U.S. General Accountability Office, 401(k) Retirement Investor. The Department experiences and concerns? Does it Plans: Improved Regulation Could Better Protect requests comment on whether the provide enough clarity to financial Participants from Conflicts of Interest, GAO 11–119 exemption text should include a (Washington, DC 2011), available at https:// entities interested in the proposed definition of the terms ‘‘principal www.gao.gov/assets/320/315363.pdf. exemption? 40 The Department is aware that some Financial transaction’’ and ‘‘riskless principal Institutions pay unrelated parties to solicit clients transaction.’’ 41 for them. See Rule 206(4)–3 under the Investment Like other Investment Professionals, however, The proposal uses the defined term Advisers Act of 1940; see also Investment Advisers insurance agents may have or contemplate an Advertisements; Compensation for Solicitations, ongoing advice relationship with a customer. For ‘‘Covered Principal Transaction’’ to Proposed Rule, 84 FR 67518 (December 10, 2019). example, agents who receive trailing commissions describe the types of non-riskless The Department notes that advice by a paid on annuity transactions may continue to provide principal transactions that would be solicitor to take a distribution from a Plan and to ongoing recommendations or service with respect to covered under the exemption. For roll over assets to an IRA could be part of ongoing the annuity. advice to a Retirement Investor, if the Financial 42 Preamble to the Department’s 1975 Regulation, purchases from a Plan or IRA, the term Institution that pays the solicitor provides ongoing 40 FR 50842 (October 31, 1975). is broadly defined to include any fiduciary advice to the IRA owner. 43 Id. securities or other investment property.

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This is to reflect the possibility that a therefore, do not benefit from paying for safeguards. Employers can always principal transaction will be needed to the bond’s tax-favored status.44 render advice and recover their direct provide liquidity to a Retirement Financial Institutions and Investment expenses in transactions involving their Investor. However, for sales to a Plan or Professionals may wish to document the employees without need of an IRA, the proposed exemption would reasons for any recommendation of a exemption.45 Further, the Department provide more limited relief. For those tax-exempt municipal bond and why does not intend for the exemption to be sales, the definition of Covered the recommendation, despite the tax used by a Financial Institution or Principal Transaction would be limited consequences, was in the Retirement Investment Professional that is the to transactions involving: corporate debt Investor’s best interest. named fiduciary or plan administrator securities offered pursuant to a The Department seeks public of a Plan or an affiliate thereof, unless registration statement under the comment on all aspects of the proposal’s the Financial Institution or Investment Securities Act of 1933; U.S. Treasury treatment of principal transactions, Professional is selected as an advice securities; debt securities issued or including the proposal to provide relief provider by a party that is independent guaranteed by a U.S. federal government in this exemption for principal of them.46 Named fiduciaries and plan agency other than the U.S. Department transactions involving municipal bonds. administrators have significant of Treasury; debt securities issued or Do commenters believe that the authority over Plan operations and guaranteed by a government-sponsored exemption should extend to principal accordingly, the Department believes transactions involving municipal enterprise (GSE); municipal bonds; that any selection of these parties to also bonds? Do commenters believe the certificates of deposit; and interests in provide investment advice to the Plan or definition of municipal bonds should be Unit Investment Trusts. The Department its participants and beneficiaries should limited to taxable municipal bonds? seeks comment on whether any of these be made by an independent party who investments should be further defined Should the exemption include any will also monitor the performance of the for clarity. additional safeguards for these The Department intends for this transactions? Are there any other investment advice services. exemption to accommodate new and transactions that would benefit from As reflected in Section I(c)(2), the additional investments, as appropriate. special care before making a exemption also would not extend to Accordingly, the definition of Covered recommendation in addition to transactions that result from robo-advice Principal Transaction is designed to municipal bonds? The Department arrangements that do not involve expand to include additional requests comments on whether its interaction with an Investment investments if the Department grants an proposed mechanism for including new Professional. Congress previously individual exemption that provides and additional investments through granted statutory relief for investment relief for investment advice fiduciaries later, individual exemptions provides advice programs using computer models to sell the investment to a Retirement sufficient flexibility. in ERISA sections 408(b)(14) and 408(g) Investor in a principal transaction, Exclusions and Code sections 4975(d)(17) and under the same conditions as this class 4975(f)(8) and the Department has exemption. Section I(c) provides that certain promulgated applicable regulations For sales of a debt security to a Plan specific transactions would be excluded thereunder.47 Thus, while ‘‘hybrid’’ or IRA, the definition of Covered from the exemption. Under Section robo-advice arrangements 48 would be Principal Transaction would require the I(c)(1), the exemption would not extend permitted under the exemption, Financial Institution to adopt written to transactions involving ERISA-covered arrangements in which the only policies and procedures related to credit Plans if the Investment Professional, investment advice provided is generated quality and liquidity. Specifically, the Financial Institution, or an affiliate is by a computer model would not be policies and procedures must be either (1) the employer of employees eligible for relief under the exemption. reasonably designed to ensure that the covered by the Plan, or (2) is a named The Department requests comment on fiduciary or plan administrator, or an debt security, at the time of the whether additional relief is needed for affiliate thereof, who was selected to recommendation, has no greater than robo-advice arrangements which do not moderate credit risk and has sufficient provide advice to the Plan by a fiduciary who is not independent of the Financial liquidity that it could be sold at or near 45 Institution, Investment Professional, and ERISA section 408(b)(5) provides a statutory its carrying value within a reasonably exemption for the purchase of life insurance, health short period of time. This standard is their affiliates. The Department is of the insurance, or annuities, from an employer with intended to identify investment grade view that, to protect employees from respect to a Plan or a wholly-owned subsidiary of securities, and is included to prevent abuse, employers generally should not the employer. the exemption from being available to be in a position to use their employees’ 46 For purposes of this exemption, the Department would view a party as independent of the Financial Financial Institutions that recommend retirement benefits as potential revenue Institution and Investment Professional if: (i) The speculative debt securities from their or profit sources, without additional person was not the Financial Institution, own accounts. Investment Professional or an affiliate, (ii) the The proposal is broader than the 44 See e.g., Seven Questions to Ask When person did not have a relationship to or an interest scope of FAB 2018–02, which did not Investing in Municipal Bonds, available at http:// in the Financial Institution, Investment Professional www.msrb.org/∼/media/pdfs/msrb1/pdfs/seven- or any affiliate that might affect the exercise of the include principal transactions involving questions-when-investing.ashx. (‘‘[T]ax-exempt person’s best judgment in connection with municipal bonds. The Department bonds may not be an efficient investment for certain transactions covered by the exemption, and (iii) the cautions, however, that Financial tax advantaged accounts, such as an IRA or 401k, party does not receive and is not projected to Institutions and Investment as the tax-advantages of such accounts render the receive within the current federal income tax year, tax-exempt features of municipal bonds redundant. compensation or other consideration for his or her Professionals should pay special care to Furthermore, since withdrawals from most of those own account from the Financial Institution, the reasons for advising Retirement accounts are subject to tax, placing a tax exempt Investment Professional or an affiliate, in excess of Investors to invest in municipal bonds. bond in such an account has the effect of converting 2% of the person’s annual revenues based upon its Tax-exempt municipal bonds are often a tax-exempt income into taxable income. Finally, if prior income tax year. an investor purchases bonds in the secondary 47 29 CFR 2550.408g–1. poor choice for investors in ERISA plans market at a discount, part of the gain received upon 48 Hybrid robo-advice arrangements involve both and IRAs because the plans and IRAs sale may be subject to regular income tax rates computer software-based models and personal are already tax advantaged and, rather than capital gains rates.’’) investment advice from an Investment Professional.

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involve interaction with an Investment applicable.49 The disclosure also would suited to the problems posed by Professional. be required to provide a written conflicted investment advice. Finally, under Section I(c)(3), the description, accurate in all material The proposal’s standard of care is an objective standard that would require exemption would not extend to respects regarding the services to be the Financial Institution and Investment transactions in which the Investment provided and the Financial Institution’s Professional to investigate and evaluate Professional is acting in a fiduciary and Investment Professional’s material conflicts of interest. Under Section II(c), investments, provide advice, and capacity other than as an investment exercise sound judgment in the same advice fiduciary. This is consistent with the Financial Institution would be required to establish, maintain and way that knowledgeable and impartial FAB 2018–02, which applied to enforce written policies and procedures professionals would.51 Thus, an investment advice fiduciaries. For prudently designed to ensure that the Investment Professional’s and Financial clarity, Section I(c)(3) cites to the Financial Institution and its Investment Institution’s advice would be measured Department’s five-part test as the Professionals comply with the Impartial against that of a prudent Investment governing authority for status as an Conduct Standards. Section II(d) would Professional. As indicated in the text, investment advice fiduciary. require Financial Institutions to conduct the standard of care is measured at the Exemption Conditions an annual retrospective review. time the advice is provided, and not in hindsight.52 The standard would not Section II of the proposal sets forth Best Interest Standard measure compliance by reference to the general conditions that would be As defined in Section V(a), the how investments subsequently included in the exemption. Section III proposed best interest standard would performed or turn Financial Institutions establishes the eligibility requirements. be satisfied if investment advice and Investment Professionals into Section IV would require parties to ‘‘reflects the care, skill, prudence, and guarantors of investment performance; maintain records to demonstrate diligence under the circumstances then rather, the appropriate measure is compliance with the exemption. Section prevailing that a prudent person acting whether the Investment Professional gave advice that was prudent and in the V includes the defined terms used in the in a like capacity and familiar with such best interest of the Retirement Investor exemption. These sections are discussed matters would use in the conduct of an at the time the advice is provided. below. In order to avoid a prohibited enterprise of a like character and with transaction, the Financial Institution The proposal articulates the best like aims, based on the investment interest standard as the Financial and Investment Professional would have objectives, risk tolerance, financial Institutions’ and Investment to comply with all of the conditions of circumstances, and needs of the Professionals’ duty to ‘‘not place the the exemption, and could not waive or Retirement Investor, and does not place financial or other interest of the disclaim compliance with any of the the financial or other interest of the Investment Professional, Financial conditions. Similarly, a Retirement Investment Professional, Financial Institution or any affiliate, related entity Investor could not agree to waive any of Institution or any affiliate, related entity or other party ahead of the interests of the conditions. or other party ahead of the interests of the Retirement Investor, or subordinate the Retirement Investor, or subordinate Investment Advice Arrangement the Retirement Investor’s interests to the Retirement Investor’s interests to (Section II) their own.’’ The standard is to be their own.’’ interpreted and applied consistent with Section II sets forth conditions that This proposed best interest standard the standard set forth in the SEC’s would govern the Financial Institution’s is based on longstanding concepts Regulation Best Interest 53 and the SEC’s and Investment Professionals’ provision derived from ERISA and the high of investment advice. As discussed in fiduciary standards developed under the 51 See Regulation Best Interest Care Obligation, 17 greater detail below, Section II(a) would common law of trusts, and is intended CFR 240.15l–1(a)(2)(ii); Regulation Best Interest Release, 84 FR at 33321 (Under the Care Obligation, require Financial Institutions and to comprise objective standards of care ‘‘[t]he broker-dealer must understand potential Investment Professionals to comply and undivided loyalty, consistent with risks, rewards, and costs associated with the with the Impartial Conduct Standards the requirements of ERISA section recommendation.’’); id., at 33326 (‘‘We are adopting by providing advice that is in 404.50 These longstanding concepts of the Care Obligation largely as proposed; however, we are expressly requiring that a broker-dealer Retirement Investors’ best interest, law and equity were developed in understand and consider the potential costs charging only reasonable compensation, significant part to deal with the issues associated with its recommendation, and have a and making no materially misleading that arise when agents and persons in a reasonable basis to believe that the recommendation statements about the investment position of trust have conflicting does not place the financial or other interest of the broker-dealer ahead of the interest of the retail transaction and other relevant matters. interests, and accordingly are well- customer.’’); id. at 33376 & n. 598 (discussing the The Impartial Conduct Standards would Care Obligation in the context of complex or risky further require the Financial Institution 49 As noted above, the Department does not securities and investment strategies; citing FINRA and Investment Professional to seek to intend the exemption to expand Retirement Regulatory Notice 17–32 as explaining that ‘‘[t]he Investors’ ability, such as by requiring contracts level of reasonable diligence that is required will obtain the best execution of the and/or warranty provisions, to enforce their rights rise with the complexity and risks associated with investment transaction reasonably in court or create any new legal claims above and the security or strategy. With regard to a complex available under the circumstances, as beyond those expressly authorized in ERISA. product such as a volatility-linked [Exchange required by the federal securities laws. Neither does the Department believe the exemption Traded Product], an associated person should be would create any such expansion. capable of explaining, at a minimum, the product’s Section II(b) would require Financial 50 Cf. also Code section 4975(f)(5), which defines main features and associated risks.’’). Institutions, prior to engaging in a ‘‘correction’’ with respect to prohibited transactions 52 See Donovan v. Mazzola, 716 F.2d 1226, 1232 transaction pursuant to the exemption, as placing a Plan or IRA in a financial position not (9th Cir. 1983). worse that it would have been in if the person had 53 Regulation Best Interest’s best interest to provide a written disclosure to the acted ‘‘under the highest fiduciary standards.’’ obligation provides that a ‘‘broker, dealer, or a Retirement Investor acknowledging that While the Code does not expressly impose a duty natural person who is an associated person of a the Financial Institution and its of loyalty on fiduciaries, the best interest standard broker or dealer, when making a recommendation Investment Professionals are fiduciaries proposed here is intended to ensure adherence to of any securities transaction or investment strategy the ‘‘highest fiduciary standards’’ when a fiduciary involving securities (including account under ERISA and the Code, as advises a Plan or IRA owner under the Code. recommendations) to a retail customer, shall act in

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interpretation regarding the conduct Investment Professional, Financial fiduciary status. The reasonable standard for registered investment Institution, or other party ahead of the compensation standard requires that advisers.54 55 Retirement Investor’s financial interests, compensation not be excessive, as This best interest standard would or subordinate the Retirement Investor’s measured by the market value of the allow Investment Professionals and interests to those of the Investment particular services, rights, and benefits Financial Institutions to provide Professional or Financial Institution. the Investment Professional and investment advice despite having a Neither the best interest standard nor Financial Institution are delivering to financial or other interest in the any other condition of the exemption the Retirement Investor. Given the transaction, so long as they do not place would establish a monitoring conflicts of interest associated with the the interests ahead of the interests of the requirement for Financial Institutions or commissions and other payments that Retirement Investor, or subordinate the Investment Professionals; the parties would be covered by the exemption, Retirement Investor’s interests to their can, of course, establish a monitoring and the potential for self-dealing, it is own. For example, in choosing between obligation by agreement, arrangement, particularly important that Investment two investments equally available to the or understanding. Under Section II(b), Professionals and Financial Institutions investor, it would not be permissible for discussed below, Financial Institutions adhere to these statutory standards, the Investment Professional to advise would, however, be required to disclose which are rooted in common law investing in the one that is worse for the which services they will provide. principles. Retirement Investor because it is better Moreover, Financial Institutions should In general, the reasonableness of fees for the Investment Professional’s or the carefully consider whether certain will depend on the particular facts and Financial Institution’s bottom line. investments can be prudently circumstances at the time of the Because the standard does not forbid the recommended to the individual recommendation. Several factors inform Financial Institution or Investment Retirement Investor in the first place whether compensation is reasonable, Professional from having an interest in without ongoing monitoring of the including the market price of service(s) the transaction this standard would not investment. Investments that possess provided and/or the underlying asset(s), foreclose the Investment Professional unusual complexity and risk, for the scope of monitoring, and the and Financial Institution from being example, may require ongoing complexity of the product. No single paid, nor would it foreclose investment monitoring to protect the investor’s factor is dispositive in determining advice on proprietary products or interests. An Investment Professional whether compensation is reasonable; investments that generate third party may be unable to satisfy the exemption’s the essential question is whether the payments. best interest standard with respect to charges are reasonable in relation to The best interest standard in this such investments without a mechanism what the investor receives. Under the proposal would not impose an in place for monitoring. The added cost exemption, the Financial Institution and unattainable obligation on Investment of monitoring such investments should Investment Professional would not have Professionals and Financial Institutions also be considered by the Financial to recommend the transaction that is the to somehow identify the single ‘‘best’’ Institution and Investment Professional lowest cost or that generates the lowest investment for the Retirement Investor in determining whether the fees without regard to other relevant out of all the investments in the national recommended investments are in the factors. Recommendations of the or international marketplace, assuming Retirement Investor’s best interest. The ‘‘lowest cost’’ security or investment such advice were even possible at the Department requests comments on this strategy, without consideration of other time of the transaction. The obligation best interest standard and whether factors, could in fact violate the under the best interest standard would additional examples would be useful. exemption. be to give advice that adheres to The reasonable compensation professional standards of prudence, and Reasonable Compensation standard would apply to all transactions that does not place the interests of the General under the exemption, including investment products that bundle the best interest of the retail customer at the time Section II(a)(2) of the exemption together services and investment the recommendation is made, without placing the would establish a reasonable guarantees or other benefits, such as financial or other interest of the broker, dealer, or compensation standard. Compensation annuities. In assessing the natural person who is an associated person of a received, directly or indirectly, by the broker or dealer making the recommendation ahead reasonableness of compensation in of the interest of the retail customer.’’ 17 CFR Financial Institution, Investment connection with these products, it is 240.15l-1(a)(1). Professional, and their affiliates and appropriate to consider the value of the 54 ‘‘An investment adviser’s fiduciary duty under related entities for their services would guarantees and benefits as well as the the Advisers Act comprises a duty of care and a not be permitted to exceed reasonable value of the services. When assessing duty of loyalty. This fiduciary duty requires an compensation within the meaning of adviser ‘to adopt the principal’s goals, objectives, or the reasonableness of a charge, one ends.’ This means the adviser must, at all times, ERISA section 408(b)(2) and Code generally needs to consider the value of serve the best interest of its client and not section 4975(d)(2). all the services and benefits provided subordinate its client’s interest to its own. In other The obligation to pay no more than for the charge, not just some. If parties words, the investment adviser cannot place its own reasonable compensation to service interests ahead of the interests of its client.’’ SEC need additional guidance in this Fiduciary Interpretation, 84 FR at 33671(citations providers has been long recognized respect, they should refer to the omitted). under ERISA and the Code. ERISA Department’s interpretations under 55 The NAIC’s updated Suitability in Annuity section 408(b)(2) and Code section ERISA section 408(b)(2) and Code Transactions Model Regulation includes a safe 4975(d)(2) expressly require all types of harbor for recommendations made by financial section 4975(d)(2). The Department will professionals that are ERISA and Code fiduciaries services arrangements involving Plans provide additional guidance if in compliance with the duties, obligations, and IRAs to result in no more than necessary. prohibitions and all other requirements attendant to reasonable compensation to the service such status under ERISA and the Code. NAIC provider. Investment Professionals and Best Execution Suitability in Annuity Transactions Model Section II(a)(2)(B) of the exemption Regulation, Spring 2020, Section 6.E.(5)(c), Financial Institutions—as service available at https://www.naic.org/store/free/MDL- providers—have long been subject to would require that, as required by the 275.pdf. this requirement, regardless of their federal securities laws, the Financial

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Institution and Investment Professional materially misleading for the Financial Professional, as well as the Retirement seek to obtain the best execution of the Institution or Investment Professional to Investor, at the time of the investment investment transaction reasonably include any exculpatory clauses or transaction. The Department does not available under the circumstances. indemnification provisions in an intend the fiduciary acknowledgment or Financial Institutions and Investment arrangement with a Retirement Investor any of the disclosure obligations to Professionals subject to federal that are prohibited by applicable law.58 create a private right of action as securities laws such as the Securities Retirement Investors are clearly best between a Financial Institution or Act of 1933, the Securities Exchange Act served by statements and Investment Professional and a of 1934, and the Investment Advisers representations free from material Retirement Investor and it does not Act of 1940, and rules adopted by misstatements and omissions. Financial believe the exemption would do so.59 FINRA and the Municipal Securities Institutions and Investment As noted above, ERISA section 502(a) Rulemaking Board (MSRB), are Professionals best avoid liability—and provides a cause of action for fiduciary obligated to a longstanding duty of best best promote the interests of Retirement breaches and prohibited transactions execution. As described recently by the Investors—by ensuring that accurate with respect to ERISA-covered Plans SEC, ‘‘[a] broker-dealer’s duty of best communications are a consistent (but not IRAs). Code section 4975 execution requires a broker-dealer to standard in all their interactions with imposes a tax on disqualified persons seek to execute customers’ trades at the their customers. participating in a prohibited transaction involving Plans and IRAs (other than a most favorable terms reasonably Disclosure—Section II(b) available under the circumstances.’’ 56 fiduciary acting only as such). These are This condition complements the Section II(b) of the exemption would the sole remedies for engaging in non- reasonable compensation standard set require the Financial Institution to exempt prohibited transactions. forth in ERISA and the Code. provide certain written disclosures to The description of the services to be The Department would apply the best the Retirement Investor, prior to provided and material conflicts of execution requirement consistent with engaging in any transactions pursuant to interest is necessary to ensure the federal securities laws. Financial the exemption. The Financial Institution Retirement Investors receive Institutions that are FINRA members must acknowledge, in writing, that the information to assess the conflicts and would satisfy this subsection if they Financial Institution and its Investment compensation structures. The approach comply with the standards in FINRA Professionals are fiduciaries under taken in the proposal is principles-based rules 2121 (Fair Prices and ERISA and the Code, as applicable, with and meant to provide the flexibility Commissions) and 5310 (Best Execution respect to any fiduciary investment necessary to apply to a wide variety of and Interpositioning), or any successor advice provided by the Financial business models and practices. The rules in effect at the time of the Institution or Investment Professional to proposal does not require specific transaction, as interpreted by FINRA. the Retirement Investor. The Financial disclosures to be tailored for each Financial Institutions engaging in a Institution must provide a written Retirement Investor or each transaction purchase or sale of a municipal bond description of the services to be as long as a compliant disclosure is would satisfy this subsection if they provided and material conflicts of provided before engaging in the comply with the standards in MSRB interest arising out of the services and particular transaction for which the rules G–30 (Prices and Commissions) any recommended investment exemption is sought. The Department and G–18 (Best Execution), or any transaction. The description must be requests comments on the disclosure successor rules in effect at the time of accurate in all material respects. requirements. In particular, the the transaction, as interpreted by MSRB. The disclosure obligations in this Department seeks comment on whether Financial Institutions that are subject to proposal are designed to protect the written acknowledgment of and comply with the fiduciary duty Retirement Investors by enhancing the fiduciary status should be accompanied under section 206 of the Investment quality of information they receive in by a disclosure of the fiduciary’s Advisers Act, which as described by the connection with fiduciary investment obligations under the exemption to SEC encompasses a duty to seek best advice. The disclosures should be in provide advice in accordance with the execution, would satisfy this plain English, taking into consideration Impartial Conduct Standard. The subsection.57 Retirement Investors’ level of financial Department also requests comment on experience. The requirement can be whether the Department should instead Misleading Statements satisfied through any disclosure, or require this disclosure of Financial Section II(a)(3) would require that combination of disclosures, required to Institutions’ and Investment statements by the Financial Institution be provided by other regulators so long Professionals’ obligations under the and its Investment Professionals to the as the disclosure required by Section Impartial Conduct Standards as an Retirement Investor about the II(b) is included. alternative to requiring written recommended transaction and other The proposed disclosures are disclosure of their fiduciary status. designed to ensure that the fiduciary relevant matters are not materially Policies and Procedures—Section II(c) misleading at the time they are made. nature of the relationship is clear to the Other relevant matters would include Financial Institution and Investment General fees and compensation, material Section II(c)(1) of the proposal would conflicts of interest, and any other fact 58 See, e.g., ERISA section 410 and see also ERISA Interpretive Bulletin 75–4—Indemnification of establish an overarching requirement that could reasonably be expected to fiduciaries under ERISA § 410(a). (‘‘The Department affect the Retirement Investor’s of Labor interprets section 410(a) as rendering void 59 In Chamber of Commerce of the United States investment decisions. For example, the any arrangement for indemnification of a fiduciary v. U.S. Department of Labor, supra note 5, the U.S. Department would consider it of an employee benefit plan by the plan. Such an Court of Appeals for the 5th Circuit found that the arrangement would have the same result as an Department did not have authority to include exculpatory clause, in that it would, in effect, certain contract requirements in the new 56 Regulation Best Interest Release, 84 FR at relieve the fiduciary of responsibility and liability exemptions granted as part of the 2016 fiduciary 33373, note 565. to the plan by abrogating the plan’s right to recovery rulemaking. The Department is mindful of this 57 SEC Fiduciary Interpretation, 84 FR at 33674– from the fiduciary for breaches of fiduciary holding and has not included any contract 75 (Section II.B.2 ‘‘Duty to Seek Best Execution’’). obligations.’’) requirement in this proposal.

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that Financial Institutions establish, in the best interest of the Retirement Plan to an IRA may be one of the most maintain and enforce written policies Investor. The Department requests important financial decisions that and procedures prudently designed to comments on whether additional Retirement Investors make, as it may ensure that the Financial Institution and specific documentation requirements have a long-term impact on their its Investment Professionals comply would be appropriate. retirement security. To comply with the conditions in with the Impartial Conduct Standards. The Department believes the Under Section II(c)(2), Financial Section II(c), Financial Institutions requirement in Section II(c)(3) to Institutions’ policies and procedures would identify and carefully focus on document the reasons that advice to would be required to mitigate conflicts the particular aspects of their business take a distribution or to roll over Plan of interest to the extent that the policies model that may create incentives that and procedures, and the Financial are misaligned with the interests of or IRA assets were in the Retirement Institution’s incentive practices, when Retirement Investors. If, for example, a Investor’s best interest will serve an viewed as a whole, are prudently Financial Institution anticipates that important role in protecting Retirement designed to avoid misalignment of the conflicts of interest in its business Investors during this significant interests of the Financial Institution and model will center on advice to roll over decision. The requirement is designed Investment Professionals and the Plan assets, and after the rollover, the to ensure that Investment Professionals interests of Retirement Investors. In Financial Institution and Investment take the time to form a prudent accordance with this standard, a Professional will be compensated on a recommendation, and that a record is reasonable person reviewing the level-fee basis, the Financial available for later review. Financial Institution’s incentive Institution’s policies and procedures For purposes of compliance with the practices, policies, and procedures should focus on the rollover or exemption, a prudent recommendation would conclude that the policies do not distribution recommendation. The to roll over from an ERISA-covered Plan give Investment Professionals an proposed requirement in Section II(c)(3) to an IRA would necessarily include incentive to violate the Impartial to document the reason for rollover and consideration and documentation of the Conduct Standards, but rather are account recommendations supports following: The Retirement Investor’s reasonably designed to promote compliance with the Impartial Conduct alternatives to a rollover, including 61 compliance with the standards. Standards in this context. leaving the money in his or her current As defined in the proposal, a conflict On the other hand, if a Financial employer’s Plan, if permitted, and of interest is ‘‘an interest that might Institution intends to receive selecting different investment options; incline a Financial Institution or transaction-based third party the fees and expenses associated with Investment Professional—consciously or compensation, and compensate both the Plan and the IRA; whether the unconsciously—to make a Investment Professionals based on employer pays for some or all of the recommendation that is not in the Best transactions that occur in a Retirement Interest of the Retirement Investor’’ 60 Investor’s accounts, such as through Plan’s administrative expenses; and the Conflict mitigation is a critical commissions, the Financial Institution’s different levels of services and condition of the exemption, and is an policies and procedures would also investments available under the Plan important factor for the Department to address the incentives created by these and the IRA. For rollovers from another make the findings under ERISA section compensation arrangements. Financial IRA or changes from a commission- 408(a) and Code section 4975(d)(2), that Institutions that provide advice based account to a fee-based the exemption is in the interests of, and regarding proprietary products or from arrangement, a prudent protective of, Retirement Investors. The limited menus of products would recommendation would include requirement to avoid misalignment consider the conflicts of interest these consideration and documentation of the means, for example, that Financial arrangements create. Approaches to services that would be provided under Institutions’ policies and procedures these conflicts of interest are discussed the new arrangement. would be required to be prudently in more detail below. In evaluating a potential rollover from designed to protect Retirement Investors Advice To Roll Over Plan or IRA Assets an ERISA-covered Plan, the Investment from recommendations to make Professional and Financial Institution excessive trades, or to buy investment Rollover recommendations are a should make diligent and prudent products, annuities, or riders that are primary concern of the Department, as efforts to obtain information about the not in the investor’s best interest or that Financial Institutions and Investment existing Plan and the participant’s allocate excessive amounts to illiquid or Professionals may have a strong interests in it. If the Retirement Investor risky investments. economic incentive to recommend that is unwilling to provide the information, Section II(c)(3) of the exemption investors roll over assets into one of even after a full explanation of its would establish specific documentation their Institution’s IRAs, whether from a significance, and the information is not requirements for recommendations to Plan or from an IRA account at another otherwise readily available, the roll over Plan or IRA assets to another Financial Institution, or even between Investment Professional should make a Plan or IRA and to change from one type different account types. The decision to reasonable estimation of expenses, asset of account to another (e.g., from a roll over assets from an ERISA-covered commission-based account to a fee- values, risk, and returns based on based account). Financial Institutions 61 In general, after the rollover, the ongoing publicly available information and making these recommendations would receipt of compensation based on a fixed percentage explain the assumptions used and their be required to document the specific of the value of assets under management does not limitations to the Retirement Investor. require a prohibited transaction exemption. The Department requests comment on reason or reasons why the However, the Department cautions that certain recommendation was considered to be practices such as ‘‘reverse churning’’ (i.e. whether there are any other actions the recommending a fee-based account to an investor Department should or could take with 60 This definition is consistent with the concept with low trading activity and no need for ongoing respect to disclosure or reporting that of a conflict of interest in the SEC’s rulemaking. monitoring or advice) or recommending holding an would promote prudent rollover advice Regulation Best Interest definition of Conflict of asset solely to generate more fees may be prohibited Interest, 17 CFR 240.15l–1(b)(3); SEC Fiduciary transactions that would not satisfy the Impartial without overlapping existing regulatory Interpretation, 84 FR at 33671. Conduct Standards. requirements.

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Commission-Based Compensation (iii) Eliminating compensation annuity sales to ensure compliance with Arrangements incentives within comparable product state-law suitability requirements.63 Financial Institutions that compensate lines by, for example, capping the credit In this regard, insurance company Investment Professionals through that an associated person may receive Financial Institutions would be transaction-based payments and across mutual funds or other responsible only for an Investment incentives would need to consider how comparable products across providers; Professional’s recommendation and sale of products offered to Retirement to minimize the impact of these (iv) Implementing supervisory Investors by the insurance company in compensation incentives on fiduciary procedures to monitor conjunction with fiduciary investment investment advice to Retirement recommendations that are: near advice, and not unrelated and Investors, so that the Financial compensation thresholds; near unaffiliated insurers.64 Insurance Institution would be able to meet the thresholds for firm recognition; involve companies could implement the exemption’s standard of conflict higher compensating products, policies and procedures by monitoring mitigation set forth in proposed Section proprietary products or transactions in a market prices and benchmarks for their II(c)(2). As noted above, this standard principal capacity; or, involve the products and services, and remaining would require the policies and rollover or transfer of assets from one type of account to another (such as attentive to any financial inducements procedures, and the Financial they offer to independent agents that Institution’s incentive practices, when recommendations to roll over or transfer assets in an ERISA account to an IRA) could result in a misalignment of the viewed as a whole, to be prudently interests of the agent and his or her or from one product class to another; (v) designed to avoid misalignment of the Retirement Investor customer. Insurers Adjusting compensation for associated interests of the Financial Institution and could also create a system of oversight persons who fail to adequately manage Investment Professionals and the and compliance by contracting with an conflicts of interest; and (vi) Limiting interests of Retirement Investors. IMO to implement policies and For commission-based compensation the types of retail customer to whom a procedures designed to ensure that all of arrangements, Financial Institutions product, transaction or strategy may be 62 the agents associated with the would be encouraged to focus on both recommended. intermediary adhere to the conditions of financial incentives to Investment Financial Institutions also should this exemption. Thus, for example, as Professionals and supervisory oversight consider minimizing incentives at the one possible approach, the intermediary of investment advice. These two aspects Financial Institution level. Firms could could eliminate compensation of the Financial Institution’s policies establish or enhance the review process incentives across all the insurance and procedures would complement for investment products that may be each other, and Financial Institutions recommended to Retirement Investors. 63 Cf. NAIC Suitability in Annuity Transactions would retain the flexibility, based on This process could include procedures Model Regulation, Spring 2020, Section 6.C.(2)(d) (‘‘The insurer shall establish and maintain the characteristics of their businesses, to for identifying and mitigating conflicts adjust the stringency of each component procedures for the review of each recommendation of interest associated with the product prior to issuance of an annuity that are designed to provided that the exemption’s overall and declining to recommend a product ensure that there is a reasonable basis to determine standards would be satisfied. Financial if the Financial Institution cannot that the recommended annuity would effectively Institutions that significantly mitigate address the particular consumer’s financial effectively mitigate associated conflicts commission-based compensation situation, insurance needs and financial objectives. of interest. Such review procedures may apply a screening incentives would have less need to system for the purpose of identifying selected rigorously oversee Investment Insurance companies and insurance transactions for additional review and may be Professionals. Conversely, Financial agents that are investment advice accomplished electronically or through other means fiduciaries relying on the exemption including, but not limited to, physical review. Such Institutions that have significant an electronic or other system may be designed to variation in compensation across would be encouraged to adopt strategies require additional review only of those transactions different investment products would similar to those identified above to identified for additional review by the selection need to implement more stringent address conflicts of interest. Insurance criteria’’); and (e) (‘‘The insurer shall establish and companies could also supervise maintain reasonable procedures to detect supervisory oversight. recommendations that are not in compliance with In developing compliance structures, independent insurance agents who subsections A, B, D and E. This may include, but the Department envisions that Financial provide investment advice on their is not limited to, confirmation of the consumer’s Institutions would implement conflict products through the mechanisms noted consumer profile information, systematic customer above. To comply with the exemption, surveys, producer and consumer interviews, mitigation strategies identified by the confirmation letters, producer statements or Financial Institutions’ other regulators. the insurer could adopt and implement attestations and programs of internal monitoring. The following non-exhaustive examples supervisory and review mechanisms Nothing in this subparagraph prevents an insurer of practices identified as options by the and avoid improper incentives that from complying with this subparagraph by applying sampling procedures, or by confirming the SEC could be implemented by Financial preferentially push the products, riders, consumer profile information or other required Institutions in compensating Investment and annuity features that might information under this section after issuance or Professionals: (i) Avoiding incentivize Investment Professionals to delivery of the annuity’’), available at https:// compensation thresholds that provide investment advice to www.naic.org/store/free/MDL-275.pdf. The prior version of the model regulation, which was adopted disproportionately increase Retirement Investors that does not meet in some form by a number of states, also included compensation through incremental the Impartial Conduct Standards. similar provisions requiring systems to supervise increases in sales; (ii) Minimizing Insurance companies could implement recommendations. See Annuity Suitability (A) compensation incentives for employees procedures to review annuity sales to Working Group Exposure Draft, Adopted by the Committee Dec. 30, 2019, available at https:// to favor one type of account over Retirement Investors to ensure that they www.naic.org/documents/committees_mo275.pdf. another; or to favor one type of product were made in satisfaction of the (comparing 2020 version with prior version). over another, proprietary or preferred Impartial Conduct Standards, much as 64 Cf. Id., Section 6.C.(4) (‘‘An insurer is not provider products, or comparable they may already be required to review required to include in its system of supervision: (a) A producer’s recommendations to consumers of products sold on a principal basis, for products other than the annuities offered by the example, by establishing differential 62 Regulation Best Interest Release, 84 FR at insurer’’), available at https://www.naic.org/store/ compensation based on neutral factors; 33392. free/MDL-275.pdf.

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companies that work with the achieving their intended goal of Investment Professional prudently intermediary, assisting each of the ensuring compliance with the determines that its proprietary products insurance companies with their exemption and the provision of advice or limited menu do not offer Retirement independent obligations under the that satisfies the Impartial Conduct Investors an investment option in their exemption. This might involve the Standards. The Department seeks best interest when compared with other intermediary’s review of documentation comment on the proposed policy and investment alternatives available in the prepared by insurance agents to comply procedure requirements, including marketplace. The Department envisions with the exemption, as may be required whether this principle-based method is that Financial Institutions complying by the insurance company, or the use of sufficiently protective of participants with the Impartial Conduct Standards third-party industry comparisons and beneficiaries. would carefully consider their product available in the marketplace to help Proprietary Products and Limited offerings and form a reasonable independent insurance agents Menus of Investment Products conclusion about whether the menu of recommend products that are prudent investment options would permit for the Retirement Investors they It is important to note that the Investment Professionals to provide advise.65 Department believes that the best fiduciary investment advice to The Department notes that regulators interest standard can be satisfied by Retirement Investors in accordance with in the securities and insurance industry Financial Institutions and Investment the Impartial Conduct Standards. The have adopted provisions requiring Professionals that provide investment exemption would be available if the elimination of sales contests and similar advice on proprietary products or on a Financial Institution prudently incentives such as sales quotas, limited menu, including limitations to concludes that its offering of proprietary bonuses, and non-cash compensation proprietary products 67 and products 68 products, or its limitations on that are based on sales of certain that generate third party payments. investment product offerings, in investments within a limited period of Product limitations can serve a conjunction with the policies and 66 time. The Department agrees that beneficial purpose by allowing broker- procedures, would not cause a these practices create incentives to dealers and associated persons to misalignment of interests. Financial recommend products that are not in a develop increased familiarity with the Institutions and Investment Retirement Investor’s best interest that products they recommend. At the same Professionals cannot use a limited menu cannot be effectively mitigated. time, limited menus, particularly if they to justify making a recommendation that Therefore, Financial Institutions’ focus on proprietary products and does not meet the Impartial Conduct policies and procedures would not be products that generate third party Standards. prudently designed to avoid a payments, can result in heightened misalignment of interests between conflicts of interest. Financial The Department seeks comment on Investment Professionals and Institutions and their affiliates may this analysis. Is this preamble guidance Retirement Investors if they establish or receive more compensation than they sufficient or do commenters believe that permit these practices. To satisfy the would for recommending other it is important for the exemption text to exemption’s standard of mitigation, products, and, as a result, Investment specifically address proprietary Financial Institutions would be required Professionals’ and Financial products and limited menus of to carefully consider performance and Institutions’ interests may be misaligned investment products? Should the personnel actions and practices that with the interests of Retirement Department more specifically could encourage violation of the Investors. incorporate provisions of Regulation Impartial Conduct Standards. Financial Institutions and Investment Best Interest in this respect? 69 Should The Department notes Financial Professionals providing investment this exemption specify documentation Institutions complying with the advice on proprietary products or on a requirements reflecting the Financial exemption would need to review their limited menu would satisfy the standard Institution’s analysis or conclusions policies and procedures periodically provided they give complete and with respect to its adoption of a limited and reasonably revise them as necessary accurate disclosure of their material menu or its recommendation of to ensure that the policies and conflicts of interest in connection with proprietary products, and its ability to procedures continue to satisfy the such products or limitations and adopt comply with the conditions of this conditions of this exemption. In policies and procedures that are exemption with respect to such particular, the exemption would require prudently designed to prevent any products or menus? ongoing vigilance as to the impact of conflicts of interest from causing a Retrospective Review—Section II(d) conflicts of interest on the provision of misalignment of the interests of the fiduciary investment advice to Financial Institution and Investment Section II(d) of the proposal relates to Retirement Investors. As a matter of Professional with the interests of the the Financial Institution’s oversight of prudence, Financial Institutions should Retirement Investor. This would include its compliance, and its Investment address any deficiencies in their policies applicable to circumstances Professionals’ compliance, with the policies and procedures if, in fact, the where the Financial Institution or Impartial Conduct Standards and the policies and procedures are not policies and procedures. While 67 Proprietary products include products that are mitigation of Financial Institutions’ and 65 None of the conditions of this proposal are managed, issued or sponsored by the Financial intended to categorically bar the provision of Institution or any of its affiliates. Investment Professionals’ conflicts of employee benefits to insurance company statutory 68 Third party payments include sales charges interest is critical, Financial Institutions employees, despite the practice of basing eligibility when not paid directly by the Plan or IRA; gross must also monitor Investment for such benefits on sales of proprietary products dealer concessions; revenue sharing payments; 12b– Professionals’ conduct to detect advice of the insurance company. See Internal Revenue 1 fees; distribution, solicitation or referral fees; that does not adhere to the Impartial Code section 3121. volume-based fees; fees for seminars and 66 Regulation Best Interest Release, 84 FR at educational programs; and any other compensation, 33394–97; NAIC Suitability in Annuity consideration or financial benefit provided to the 69 See 17 CFR 240.15l–1(a)(2)(iii)(C) describing Transactions Model Regulation, Spring 2020, Financial Institution or an affiliate or related entity policies and procedures addressing material Section 6.C.(2)(h), available at https:// by a third party as a result of a transaction involving limitations placed on securities or investment www.naic.org/store/free/MDL-275.pdf. a Plan or IRA. strategies.

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Conduct Standards or the Financial advice in accordance with the Impartial undivided loyalty demanded by a Institution’s policies and procedures. Conduct Standards, and to correct any fiduciary’s position of trust and Under the proposal, Financial deficiencies in existing policies and confidence. Institutions would be required to procedures. Requiring the chief Ineligibility after a criminal conduct a retrospective review, at least executive officer (or equivalent, i.e., the conviction described in the exemption annually, that is reasonably designed to most senior officer or executive in would be automatic for an Investment assist the Financial Institution in charge of managing the Financial Professional. However, Financial detecting and preventing violations of, Institution) to certify review of the Institutions with a criminal conviction and achieving compliance with, the report is a means of creating described in the exemption would be Impartial Conduct Standards and the accountability for the review. This permitted to submit a petition to the policies and procedures governing would serve the purpose of ensuring Department and seek a determination compliance with the exemption. The that more than one person determines that continued reliance on the Department envisions that the review whether the Financial Institution is exemption would not be contrary to the would involve testing a sample of complying with the conditions of the purposes of the exemption. Petitions transactions to determine compliance. exemption and avoiding non-exempt would be required to be submitted The methodology and results of the prohibited transactions. If the chief within 10 business days of the retrospective review would be reduced executive officer does not have the conviction to the Director of the Office to a written report that is provided to experience or expertise to determine of Exemption Determinations by email the Financial Institution’s chief whether to make the certification, he or at [email protected], or by certified mail at executive officer (or equivalent officer). she would be expected to consult with Office of Exemption Determinations, That officer would be required to certify a knowledgeable compliance Employee Benefits Security annually that: professional to be able to do so. The Administration, U.S. Department of (A) The officer has reviewed the proposed retrospective review is based Labor, 200 Constitution Avenue NW, report of the retrospective review; on FINRA rules governing how broker- Suite 400, Washington, DC 20210. (B) The Financial Institution has in dealers supervise associated persons,70 Following receipt of the petition, the place policies and procedures prudently adapted to focus on the conditions of Department would provide the designed to achieve compliance with the exemption. The Department is aware Financial Institution with the the conditions of this exemption; and that other Financial Institutions are opportunity to be heard, in person or in (C) The Financial Institution has in writing or both. Because of the 10- place a prudent process to modify such subject to regulatory requirements to review their policies and procedures; 71 business day timeframe for submitting a policies and procedures as business, petition, the Department would not regulatory and legislative changes and however, for the reasons stated above, the Department believes that the expect the Financial Institution to set events dictate, and to test the forth its entire position or argument in effectiveness of such policies and specific certification requirement in the proposal will serve to protect its initial petition. The opportunity to be procedures on a periodic basis, the heard in person would be limited to one timing and extent of which is Retirement Investors in the context of conflicted investment advice in-person conference unless the reasonably designed to ensure Department determines in its sole transactions. continuing compliance with the discretion to allow additional conditions of this exemption. Eligibility (Section III) conferences. This retrospective review, report and Section III of the proposal identifies The Department’s determination as to certification would be required to be circumstances under which an whether to grant the petition would be completed no later than six months Investment Professional or Financial based solely on its discretion. In following the end of the period covered Institution would not be eligible to rely determining whether to grant the by the review. The Financial Institution on the exemption. The grounds for petition, the Department will consider would be required to retain the report ineligibility would involve certain the gravity of the offense; the and supporting data for a period of six criminal convictions or certain relationship between the conduct years. If the Department, any other egregious conduct with respect to underlying the conviction and the federal or state regulator of the Financial compliance with the exemption. The Financial Institution’s system and Institution, or any applicable self- proposed period of ineligibility would practices in its retirement investment regulatory organization, requests the business as a whole; the degree to which be 10 years. written report and supporting data the underlying conduct concerned within those six years, the Financial Criminal Convictions individual misconduct, or, alternately, Institution would make the requested An Investment Professional or corporate managers or policy; how documents available within 10 business Financial Institution would become recent was the underlying lawsuit; days of the request. The Department ineligible upon the conviction of any remedial measures taken by the believes that the requirement to provide crime described in ERISA section 411 Financial Institution upon learning of the written report within 10 business arising out of provision of advice to the underlying conduct; and such other days will ensure that Financial Retirement Investors, except as factors as the Department determines in Institutions diligently prepare their described below. The Department its discretion are reasonable in light of reports each year, resulting in includes crimes described in ERISA the nature and purposes of the meaningful protection of Retirement section 411 for the proposal because exemption. The Department would Investors. The Department requests they are likely to directly contravene the consider whether any extenuating comments about this process, including Investment Professional’s or Financial circumstances would indicate that the regarding the timing and certified Institution’s ability to maintain the high Financial Institution should be able to information. standard of integrity, care, and continue to rely on the exemption Financial Institutions can use the despite the conviction. The standard for results of the review to find more 70 See FINRA rules 3110, 3120, and 3130. the determination, as stated above, effective ways to ensure that Investment 71 See e.g., Rule 206(4)–7 under the Investment would be that continued reliance on the Professionals are providing investment Advisers Act of 1940. exemption would not be contrary to the

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purposes of the exemption. Period and Scope of Ineligibility year winding down period before Accordingly, the Department will focus The proposed period of ineligibility becoming ineligible to rely on the on the Financial Institution’s ability to would be 10 years; however, the exemption, as long as they complied fulfil its obligations under the ineligibility provisions would apply with the exemption’s other conditions exemption prudently and loyally, for differently to Investment Professionals during that year. The winding down the protection of Retirement Investors. and Financial Institutions. An period begins on the date of the trial The Department will provide a written Investment Professional convicted of a court’s judgment, regardless of whether determination to the Financial crime would become ineligible that judgment remains under appeal. Institution that articulates the basis for immediately upon the date the Financial Institutions that timely submit the determination. The Department Investment Professional is convicted by a petition regarding the conviction notes that the denial of a Financial a trial court, regardless of whether that would become ineligible as of the date Institution’s petition will not judgment remains under appeal, or of a written notice of denial from the Office of Exemption Determinations. necessarily indicate that the Department upon the date of the written ineligibility Financial Institutions that become will not entertain a separate individual notice from the Office of Exemption ineligible due to conduct with respect to exemption request submitted by the Determinations. A Financial Institution’s ineligibility exemption compliance would become same Financial Institution subject to ineligible as of the date of the written would be triggered by its own additional protective conditions. ineligibility notice from the Office of conviction or receipt of a written Exemption Determinations. Conduct With Respect to Compliance ineligibility notice, or that of another With the Exemption Financial Institutions or Investment Financial Institution in the same Professionals that become ineligible to Control Group. A Financial Institution An Investment Professional or rely on this exemption may rely on a is in a Control Group with another Financial Institution would become statutory prohibited transaction Financial Institution if, directly or exemption if one is available or may ineligible upon the date of a written indirectly, the Financial Institution ineligibility notice from the Director of seek an individual prohibited owns at least 80 percent of, is at least transaction exemption from the the Office of Exemption Determinations 80 percent owned by, or shares an 80 that they (i) engaged in a systematic Department. The Department percent or more owner with, the other encourages any Financial Institution or pattern or practice of violating the Financial Institution. For purposes of conditions of the exemption; (ii) Investment Professional facing this provision, if the Financial allegations that could result in intentionally violated the conditions of Institutions are not corporations, this exemption; or (iii) provided ineligibility to begin the application ownership is defined to include process. If the applicant becomes materially misleading information to the interests in the Financial Institution ineligible and the Department has not Department in connection with the such as profits interest or capital granted a final individual exemption, Investment Professional’s or Financial interests. the Department will consider granting Institution’s conduct under the The Department is including Control retroactive relief, consistent with its exemption. This type of conduct in Group Financial Institutions to ensure policy as set forth in 29 CFR 2570.35(d). connection with exemption compliance that a Financial Institution facing Retroactive exemptions may require would indicate that the entity should ineligibility for its actions affecting additional prospective compliance. not be permitted to continue to rely on Retirement Investors cannot simply The Department seeks comment on the broad prohibited transaction relief transfer its fiduciary investment advice the proposal’s eligibility provisions. Are in the class exemption. business to another Financial Institution the crimes included in the proposal The proposal sets forth a process that is closely related and also provides properly tailored to identify Investment fiduciary investment advice to governing the issuance of the written Professionals and Financial Institutions Retirement Investors, thus avoiding the ineligibility notice, as follows. Prior to that should no longer be eligible to rely ineligibility provisions entirely. The issuing a written ineligibility notice, the on the broad relief in the class proposed definition is narrowly tailored Director of the Office of Exemption exemption? Is additional guidance to cover only other investment advice Determinations would be required to needed with respect to any aspect of the fiduciaries that share significant ineligibility section to provide clarity to issue a written warning to the ownership. A Financial Institution Investment Professional or Financial Investment Professionals and Financial could not become ineligible based on Institutions? Institution, as applicable, identifying the actions of an entity engaged in specific conduct that could lead to unrelated services that happened to Recordkeeping (Section IV) ineligibility, and providing a six-month share a small amount of common Section IV would condition relief on opportunity to cure. At the end of the ownership. The 80 percent threshold is the Financial Institution maintaining six-month period, if the Department consistent with the Code’s rules for the records demonstrating compliance determined that the conduct persisted, determining when employees of with this exemption for six years. The it would provide the Investment multiple corporations should be treated Department generally imposes a Professional or Financial Institution as employed by the same employer.72 recordkeeping requirement on with the opportunity to be heard, in The Department requests comments on exemptions so that parties relying on an person or in writing, before the Director this definition. Is 80 percent an exemption can demonstrate, and the of the Office of Exemption appropriate threshold? Are there Department can verify, compliance with Determinations issued the written alternative ways of defining ownership the conditions of the exemption. ineligibility notice. The written that would be easily applicable to all To demonstrate compliance with the ineligibility notice would articulate the types of Financial Institutions? exemption, Financial Institutions would basis for the determination that the Unlike Investment Professionals, be required to provide, among other Investment Professional or Financial Financial Institutions would have a one- things, documentation of rollover Institution engaged in conduct recommendations and their written warranting ineligibility. 72 See Code section 414(b). policies and procedures adopted

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pursuant to Section II(c). The quantifying costs and benefits, reducing associated with this proposed Department does not expect Financial costs, harmonizing rules, and promoting exemption below. Institutions to document the reason for flexibility. At the same time, the share of total every investment recommendation Under Executive Order 12866, Plan participation attributable to made pursuant to the exemption. ‘‘significant’’ regulatory actions are participant-directed defined However, documentation may be subject to review by the Office of contribution (DC) Plans continued to especially important for Management and Budget (OMB). grow. In 2017, 83 percent of DC Plan recommendations of particularly Section 3(f) of the Executive Order participation was attributable to 401(k) complex products or recommendations defines a ‘‘significant regulatory action’’ Plans, and 98 percent of 401(k) Plan that might, on their face, appear as any regulatory action that is likely to participants were responsible directing inconsistent with the best interest of a result in a rule that may: some or all of their account Retirement Investor. (1) Have an annual effect on the investments.75 Individual DC Plan Section IV would require that the economy of $100 million or more or participants and IRA investors are records be made available, to the extent adversely and materially affect a sector responsible for investing their permitted by law, to any authorized of the economy, productivity, retirement savings and they are in need employee of the Department; any competition, jobs, the environment, of high quality, impartial advice from fiduciary of a Plan that engaged in an public health or safety, or State, local, financial service professionals in investment transaction pursuant to this or tribal governments or communities making these investment decisions. exemption; any contributing employer (also referred to as ‘‘economically Given this backdrop, the Department and any employee organization whose significant’’); believes that it is appropriate to propose members are covered by a Plan that (2) Create a serious inconsistency or an exemption to formalize the relief engaged in an investment transaction otherwise interfere with an action taken provided in the FAB. The exemption pursuant to this exemption; or any or planned by another agency; would provide Financial Institutions (3) Materially alter the budgetary participant or beneficiary of a Plan, or and Investment Professionals broader, impacts of entitlement grants, user fees, IRA owner that engaged in an more flexible prohibited transaction investment transaction pursuant to this or loan programs or the rights and relief than is currently available, while exemption. obligations of recipients thereof; or safeguarding the interests of Retirement The records should be made (4) Raise novel legal or policy issues reasonably available for examination at arising out of legal mandates, the Investors. Offering a permanent their customary location during normal President’s priorities, or the principles exemption based on the FAB would business hours. Participants, set forth in the Executive Order. provide certainty to Financial beneficiaries and IRA owners; Plan The Department anticipates that this Institutions and Investment fiduciaries; and contributing employers/ proposed exemption would be Professionals that may currently be employee organizations should be able economically significant within the relying on the temporary enforcement to request only information applicable meaning of section 3(f)(1) of Executive policy. to their own transactions, and not Order 12866. Therefore, the Department Benefits privileged trade secrets or privileged provides the following assessment of the commercial or financial information of potential benefits and costs associated This proposed exemption would the Financial Institution, or information with this proposed exemption. In generate several benefits. It would identifying other individuals. Should accordance with Executive Order 12866, provide Financial Institutions and the Financial Institution refuse to this proposed exemption was reviewed Investment Professionals with flexibility disclose information on the basis that by OMB. to choose between the new exemption the information is exempt from If the exemption is granted, it will be or existing exemptions, depending on disclosure, the Department expects that transmitted to Congress and the their needs and business models. In this the Financial Institution would provide Comptroller General for review in regard, the proposed exemption would a written notice, within 30 days, accordance with the Congressional help preserve different business models, advising the requestor of the reasons for Review Act provisions of the Small transaction arrangements, and products the refusal and that the Department may Business Regulatory Enforcement that meet different needs in the market request such information. Fairness Act of 1996 (5 U.S.C. 801 et place. This can, in turn, help preserve seq.). wide availability of investment advice Regulatory Impact Analysis arrangements and products for Need for Regulatory Action Executive Orders 12866 and 13563 Retirement Investors. Furthermore, the Statement Following the United States Court of exemption would provide certainty for Financial Institutions and Investment 73 Appeals for the Fifth Circuit decision to Executive Orders 12866 and Professionals that opted to comply with 74 vacate the Department’s 2016 fiduciary 13563 direct agencies to assess all rule and exemptions, the Department the enforcement policy announced in costs and benefits of available regulatory issued the temporary enforcement the FAB to continue with that alternatives and, if regulation is policy under FAB 2018–02 and compliance approach, and the necessary, to select regulatory announced its intent to provide exemption would ensure advice that approaches that maximize net benefits additional guidance in the future. Since satisfies the Impartial Conduct (including potential economic, then, as discussed earlier in this Standards is widely available to environmental, public health, and safety preamble, the regulatory landscape has Retirement Investors without any effects; distributive impacts; and changed as other regulators, including interruption. equity). Executive Order 13563 the SEC, have adopted enhanced emphasizes the importance of conduct standards for financial services 75 Private Pension Plan Bulletin Historic Tables professionals. These changes are and Graphs 1975–2017, Employee Benefits Security 73 Regulatory Planning and Review, 58 FR 51735 Administration (Sep. 2018), https://www.dol.gov/ (Oct. 4, 1993). accordingly reflected in the baseline sites/dolgov/files/ebsa/researchers/statistics/ 74 Improving Regulation and Regulatory Review, that the Department applies when it retirement-bulletins/private-pension-plan-bulletin- 76 FR 3821 (Jan. 21, 2011). evaluates the benefits and costs historical-tables-and-graphs.pdf.

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As described above, the FAB with respect to Retirement Investors, as maintain the high standard of integrity, announced a temporary enforcement would be required by the new care, and undivided loyalty demanded policy that would apply until the exemption. by a fiduciary’s position of trust and issuance of further guidance. Its As the proposed exemption would confidence. This targeted approach of designation as ‘‘temporary’’ apply to multiple types of investment allowing the Department to give special communicated its nature as a advice transactions, it would potentially attention to parties with certain criminal transitional measure following the allow Financial Institutions to rely on convictions or with a history of vacatur of the Department’s 2016 one exemption for investment advice egregious conduct with respect to rulemaking. Although the FAB remains transactions under a single set of compliance with the exemption should in place following this proposal, the conditions. This approach may allow provide significant protections for Department does not envision that the Financial Institutions to streamline Retirement Investors while preserving FAB represents a permanent compliance compliance, as compared to relying on wide availability of investment advice approach. This is due in part to the fact multiple exemptions with multiple sets arrangements and products. that the FAB allows Financial of conditions, resulting in a lower Although the Department expects this Institutions to avoid enforcement action overall compliance burden for some proposed exemption to generate by the Department but it does not (and Financial Institutions. Retirement significant benefits, it has not quantified cannot) provide relief from private Investors may benefit, in turn, if those the benefits due to a lack of available litigation. Financial Institutions pass their savings data. However, the Department expects In connection with the more on to them. the benefits to outweigh the compliance permanent relief it would provide, the This proposed exemption’s alignment costs associated with this proposal exemption would have more specific with other regulatory conduct standards because it creates an additional pathway conditions than the FAB, which could result in a reduction in overall for compliance with ERISA’s prohibited required only good faith compliance regulatory burden as well. As discussed transaction provisions. This new with the Impartial Conduct Standards. earlier in this preamble, the proposed pathway is broader than existing The conditions in the proposal are exemption was developed in exemptions, and thus applies to a wider designed to support the provision of consideration of other regulatory range of transaction arrangements and investment advice that meets the conduct standards. The Department products than the relief that is already Impartial Conduct Standards. For envisions that Financial Institutions and available. The Department anticipates example, the required policies and Investment Professionals that have that entities will generally take procedures and retrospective review already developed, or are in the process advantage of the exemptive relief inform Financial Institutions as to how of developing, compliance structures for available in this proposal only if it is they should implement compliance other regulators’ standards will be able less costly than other alternatives with the standards. to experience regulatory efficiencies already available, including avoiding Some Financial Institutions may through reliance on the new exemption. prohibited transactions or complying consider whether to rely on the As discussed above, the Department with a different exemption. The Department’s existing exemptions rather believes that the proposed exemption Department requests comments about than adopt the specific conditions in the would provide significant protections the specific benefits that may flow from new proposed exemption. The existing for Retirement Investors. The proposed the exemption and invites commenters exemptions generally rely on exemption would not expand to submit quantifiable data that would disclosures as conditions. However, the Retirement Investors’ ability, such as support or disprove the Department’s existing exemptions are also very through required contracts and warranty expectations. narrowly tailored in terms of the provisions, to enforce their rights in transactions and types of compensation court or create any new legal claims Costs arrangements that are covered as well as above and beyond those expressly To estimate compliance costs the parties that may rely on the authorized in ERISA. Rather, the associated with the proposed exemption. For example, the existing proposed exemption relies in large exemption, the Department takes into exemptions were never amended to measure on Financial Institutions’ account the changed regulatory clearly cover the third party reasonable oversight of Investment baseline. For example, the Department compensation arrangements, such as Professionals and their adoption of a assumes affected entities will likely revenue sharing, that developed over culture of compliance. Accordingly, in incur incremental costs if they are time. Investment advice fiduciaries addition to the Impartial Conduct already subject to another regulator’s relying on some of the existing Standards, the exemption includes similar rules or requirements. Because exemptions would be limited to the conditions designed to support this proposed exemption is intended to types of compensation that tend to be investment advice that meets those align significantly with other regulators’ more transparent to Retirement standards, such as the provisions rules and standards of conduct, the Investors, such as commission requiring written policies and Department expects the compliance payments. procedures, documentation of rollover costs associated with this proposal to be For a number of reasons, Financial recommendations, and retrospective modest. The Department estimates that Institutions may decide to rely on the review. the proposed exemption would impose new exemption, if it is finalized, instead Finally, the proposal provides that costs of more than $44 million in the of the Department’s existing Financial Institutions and Investment first year and $42 million in each exemptions. The proposed exemption Professionals with certain criminal subsequent year.76 Over 10 years, the does not identify specific transactions or convictions or that engage in egregious limit the types of payments that are conduct with respect to compliance 76 These estimates rely on the Employee Benefits covered, so Financial Institutions may with the exemption would become Security Administration’s 2018 labor rate estimates. prefer this flexibility. Additionally, ineligible to rely on the exemption. See Labor Cost Inputs Used in the Employee Benefits Security Administration, Office of Policy Financial Institutions may determine These factors would indicate that the and Research’s Regulatory Impact Analyses and that there is a marketing advantage to Financial Institution or Investment Paperwork Reduction Act Burden Calculation, acknowledging their fiduciary status Professional does not have the ability to Continued

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costs associated with the proposal include Plan fiduciaries, Plan SEC-registered IAs that advise would be approximately $294 million, participants and beneficiaries, and IRA retirement plans and other Retirement annualized to $42 million per year owners. However, according to one Investors would be directly affected by (using a 7 percent discount rate).77 compliance survey, about 52 percent of the proposed exemption. Using a perpetual time horizon (to allow IAs provide advice directly to Some IAs are dual-registered as BDs. the comparisons required under E.O. retirement plans.79 Assuming the same To avoid double counting when 13771), the annualized costs in 2016 percentage of BDs service retirement estimating compliance costs, the dollars are $30 million at a 7 percent plans, nearly 2,000 BDs would be Department counted dual-registered 80 discount rate. These costs are broken affected by the proposed exemption. entities as BDs and excluded them from down and explained below. More The proposal may also impact BDs that the burden estimates of IAs.85 The details are provided in the Paperwork advise Retirement Investors that are Department estimates there to be 12,940 Reduction Act section as well. The Plan participants or beneficiaries, or SEC-registered IAs, a figure produced by Department requests comments on this IRA owners, but the Department does subtracting the 359 dually-registered IAs overall estimate and is especially not have a basis to estimate the number from the 13,299 SEC-registered IAs. interested in how different entities will of these BDs. The Department assumes incur costs associated with this that such BDs would be considered as Similar to BDs, the Department proposed exemption as well as any providing recommendations to retail assumes that about 52 percent of SEC- quantifiable data that would support or customers under the SEC’s Regulation registered IAs provide recommendations 86 contradict any aspect of its analysis Best Interest. or services to retirement plans. below. To continue servicing retirement Applying this assumption, the plans with respect to transactions that Department estimates that Affected Entities otherwise would be prohibited under approximately 6,729 SEC-registered IAs As a first step, the Department ERISA and the Code, this group of BDs currently service retirement plans. An examines the entities likely to be would be able to rely on the proposed inestimable number of IAs may provide affected by the proposed exemption. exemption.81 Because BDs with retail advice only to Retirement Investors that The proposal would potentially impact businesses are subject to the SEC’s are Plan participants or beneficiaries or SEC- and state-registered investment Regulation Best Interest, they already IRA owners, rather than retirement advisers (IAs), broker-dealers (BDs), comply with, or are preparing to comply plans. These IAs are fiduciaries, and banks, and insurance companies, as with, standards functionally identical to they already operate under conditions well as their employees, agents, and those set forth in the proposed functionally identical to those required representatives. The Department exemption. by the proposed exemption.87 acknowledges that not all these entities Accordingly, the proposed exemption will serve as investment advice SEC-Registered Investment Advisers would pose no more than a nominal fiduciaries to Plans and IRAs within the (IAs) burden for these entities. meaning of ERISA and the Code. As of December 2018, there were State-Registered Investment Advisers Additionally, because other exemptions approximately 13,299 SEC-registered are also currently available to these IAs 82 and 17,268 state-registered IAs.83 As of December 2018, there were entities, it is unclear how widely An IA must register with the 16,939 state-registered IAs.88 Of these Financial Institutions will rely upon the appropriate regulatory authorities, with state-registered IAs, 13,793 provide exemption and which firms are most the SEC or with state securities advice to retail investors, while 3,146 do likely to choose to rely on it. To err on authorities. IAs registered with the SEC not.89 State-registered IAs tend to be the side of overestimation, the are generally larger than state-registered smaller than SEC-registered IAs, both in Department includes all entities eligible IAs, both in staff and in regulatory RAUM and staff. For example, for this proposed relief in its cost assets under management (RAUM).84 according to one survey of both SEC- estimation. The Department solicits and state-registered IAs, about 47 comments about which, and how many, 79 2019 Investment Management Compliance percent of respondent IAs reported 11 to entities would likely utilize this Testing Survey, Investment Adviser Association (Jun. 18, 2019), https:// proposed exemption. higherlogicdownload.s3.amazonaws.com/ of IAs, see General Information on the Regulation Broker-Dealers (BDs) INVESTMENTADVISER/aa03843e-7981-46b2-aa49- of Investment Advisers, Securities and Exchange c572f2ddb7e8/UploadedImages/about/190618_ Commission (Mar. 11, 2011), www.sec.gov/ As of December 2018, there were IMCTS_slides_after_webcast_edits.pdf. divisions/investment/iaregulation/memoia.htm; see 3,764 registered BDs. Of those, 2,766, or 80 If this assumption is relaxed to include all BDs, also A Brief Overview: The Investment Adviser the costs would increase by $1 million for the first Industry, North American Securities Administrators approximately 73.5 percent, reported Association (2019), www.nasaa.org/industry- 78 year and by $0.02 million for subsequent years. retail customer activities, while 998 81 The Department’s estimate of compliance costs resources/investment-advisers/investment-adviser- were estimated to have no retail does not include any state-registered BDs because guide/. customers. The Department does not the exception from SEC registration for BDs is very 85 The Department applied this exclusion rule have information about how many BDs narrow. See Guide to Broker-Dealer Registration, across all types of IAs, regardless of registration (SEC registered versus state only) and retail status advise Retirement Investors, which, as Securities and Exchange Commission (Apr. 2008), www.sec.gov/reportspubs/investor-publications/ (retail versus nonretail). defined in the proposed exemption divisionsmarketregbdguidehtm.html. 86 2019 Investment Management Compliance 82 Form CRS Relationship Summary Release at Testing Survey, supra note 79. Employee Benefits Security Administration (June 33564. 87 SEC Standards of Conduct Rulemaking: What 2019), https://www.dol.gov/sites/dolgov/files/EBSA/ 83 Id. at 33565. (Of these 17,268 state-registered It Means for RIAs, Investment Adviser Association laws-and-regulations/rules-and-regulations/ IAs, 125 are also registered with SEC and 204 are (July 2019), https:// technical-appendices/labor-cost-inputs-used-in- also dual registered BDs.) higherlogicdownload.s3.amazonaws.com/ ebsa-opr-ria-and-pra-burden-calculations-june- 84 After the Dodd-Frank Wall Street Reform and INVESTMENTADVISER/aa03843e-7981-46b2-aa49- 2019.pdf. Consumer Protection Act, an IA with $100 million c572f2ddb7e8/UploadedImages/resources/IAA- 77 The costs would be $357 million over 10-year or more in regulatory assets under management Staff-Analysis-Standards-of-Conduct- period, annualized to $42 million per year, if a 3 generally registers with the SEC, while an IA with Rulemaking2.pdf. percent discount rate is applied. less than $100 million registers with the state in 88 This excludes state-registered IAs that are also 78 Regulation Best Interest Release, 84 FR at which it has its principle office, subject to certain registered with the SEC or dual registered BDs. 33407. exceptions. For more details about the registration 89 Form CRS Relationship Summary Release.

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50 employees.90 In contrast, an non-deposit investment products with retail investors are also required, as examination of state-registered IAs (RNDIPs), including, among other of June 30, 2020, to provide disclosures reveals about 80 percent reported only products, equities, fixed-income about services provided and conflicts of 0 to 2 employees.91 According to one securities, exchange-traded funds, and interest on Form CRS and pursuant to report, 64 percent of state-registered IAs variable annuities.95 Under such the disclosure obligation in Regulation manage assets under $30 million.92 arrangements, bank employees are Best Interest. Even among entities that According to a study by the North limited to performing only clerical or currently do not provide such American Securities Administrators ministerial functions in connection with disclosures, such as insurers and some Association, about 16 percent of state- brokerage transactions. However, bank BDs, the Department believes that registered IAs provide advice or services employees may forward customer funds developing disclosures required in this to retirement plans.93 Based on this or securities and may describe, in proposed exemption would not study, the Department assumes that 16 general terms, the types of investment substantially increase costs because the percent of state-registered IAs advise vehicles available from the bank and BD required disclosures are clearly retirement plans. Thus, the Department under the arrangement. Similar specified and limited in scope. estimates that approximately 2,710 restrictions exist with respect to bank Not all entities will decide to use the state-registered, nonretail IAs provide employees’ referrals of insurance proposed exemption. Some may instead advice to retirement plans and other products and IAs. Because of the rely on other existing exemptions that Retirement Investors. limitations, the Department believes better align with their business models. that in most cases such referrals will not However, for the cost estimation, the Insurers constitute fiduciary investment advice Department assumes that all eligible The proposed exemption would affect within the meaning of the proposed entities would use the proposed insurers. Insurers are primarily exemption. Due to the prevalence of exemption and incur, on average, regulated by states, and no single banks using networking arrangements modest costs. regulator records a national-level count for transactions related to RNDIPs, the The Department estimates that of insurers. Although state regulators Department believes that most banks developing disclosures that track insurers, the sum of all insurers will not be affected with respect to such acknowledge fiduciary status and cannot be calculated by aggregating transactions. describe the services offered and any individual state totals because The Department does not have material conflicts of interest would individual insurers often operate in sufficient data to estimate the costs to incur costs of approximately $0.7 multiple states. However, the NAIC banks of any other investment advice million in the first year.97 estimates there were approximately 386 services because it does not know how The Department estimates that it insurers directly writing annuities in frequently banks use their own would cost Financial Institutions about 2018. Some of these insurers may not employees to perform activities that $0.3 million to print and mail required sell any annuity contracts in the IRA or would be otherwise prohibited. The disclosures to Retirement Investors,98 retirement plan markets. Furthermore, Department invites comments on the insurers can rely on other existing magnitude of such costs and welcomes 97 A written acknowledgment of fiduciary status exemptions instead of the proposed submission of data that would facilitate would cost approximately $0.2 million, while a written description of the services offered and any exemption. Due to lack of data, the their quantification. material conflicts of interest would cost another Department includes all 386 insurers in $0.5 million. The Department assumes that 11,782 its cost estimation, although this likely Costs Associated With Disclosures Financial Institutions, comprising 1,957 BDs, 6,729 overestimates costs. The Department The Department estimates the SEC-registered IAs, 2,710 state-registered IAs, and 386 insurers, are likely to engage in transactions invites any comments about how many compliance costs associated with the covered under this PTE. For a detailed description insurers would utilize this proposed disclosure requirement would be of how the number of entities is estimated, see the exemption. approximately $1 million in the first Paperwork Reduction Act section, below. The $0.2 year and $0.3 million per year in each million costs associated with a written Banks 96 acknowledgment of fiduciary status are calculated subsequent year. as follows. The Department assumes that it will take There are 5,362 federally insured Section II(b) of the proposed each retail BD firm 15 minutes, each nonretail BD depository institutions in the United exemption would require Financial or insurance firm 30 minutes, and each registered States.94 The Department understands Institutions to acknowledge, in writing, IA 5 minutes to prepare a disclosure conveying that banks most commonly use their status as fiduciaries under ERISA fiduciary status at an hourly labor rate of $138.41, resulting in cost burden of $221,276. Accordingly, ‘‘networking arrangements’’ to sell retail and the Code. In addition, the the estimated per-entity cost ranges from $11.53 for institutions must furnish a written IAs to $69.21 for non-retail BDs and insurers. The 90 2019 Investment Management Compliance description of the services they provide $0.5 million costs associated with a written Testing Survey, supra note 79. and any material conflicts of interest. description of the services offered and any material 91 2019 Investment Adviser Section Annual conflicts of interest are calculated as follows. The Report, North American Securities Administrators For many entities, including IAs, this Department assumes that it will take each retail BD Association (May 2019), www.nasaa.org/wp- condition would impose only modest or IA firm 5 minutes, each small nonretail BD or content/uploads/2019/06/2019–IA-Section- additional costs, if any at all. Most IAs small insurer 60 minutes, and each large nonretail Report.pdf. already disclose their status as a BDs or larger insurer 5 hours to prepare a disclosure 92 2018 Investment Adviser Section Annual fiduciary and describe the types of conveying services provided and any conflicts of Report, North American Securities Administrators interest at an hourly labor rate of $138.41, resulting Association (May 2018), www.nasaa.org/wp- services they offer in Form ADV. BDs in cost burden of $510,877. Accordingly, the content/uploads/2018/05/2018–NASAA–IA-Report- estimated per-entity cost ranges from $11.53 for Online.pdf. 95 For more details about ‘‘networking retail broker-dealers and IAs to $692.07 for large 93 2019 Investment Adviser Section Annual arrangements,’’ see Conflict of Interest Final Rule, non-retail BDs and insurers. Report, supra note 91. Regulatory Impact Analysis for Final Rule and 98 The Department estimates that approximately 94 The FDIC reports there are 4,681 Commercial Exemptions, U.S. Department of Labor (Apr. 2016), 1.8 million Retirement Investors are likely to engage banks and 681 Savings Institutions (thrifts) for www.dol.gov/sites/dolgov/files/EBSA/laws-and- in transactions covered under this PTE, of which 5,362 FDIC- Insured Institutions as of March 31, regulations/rules-and-regulations/completed- 8.1 percent are estimated to receive paper 2019. For more details, see Statistics at a Glance, rulemaking/1210-AB32-2/ria.pdf. disclosures. Distributing paper disclosures is Federal Deposit Insurance Corporation (Mar. 31, 96 Except where specifically noted, all cost estimated to take a clerical professional 1 minute 2019), www.fdic.gov/bank/statistical/stats/ estimates are expressed in 2019 dollars throughout per disclosure, at an hourly labor rate of $64.11, 2019mar/industry.pdf. this document. Continued

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but it assumes most required disclosures under which different entities are Because smaller entities generally would be electronically delivered to currently operating. For example, IAs have less complex business practices plan fiduciaries. The Department already operate under a standard and arrangements than their larger assumes that approximately 92 percent functionally identical to that required counterparts, it would likely cost less of participants who roll over their plan under the proposed exemption,103 and for them to comply with the proposed assets to IRAs would receive required report how they address conflicts of exemption. This is reflected in the disclosures electronically.99 According interests in Form ADV.104 Similarly, compliance cost estimates presented in to one study, approximately 3.6 million BDs subject to the SEC’s Regulation Best this economic analysis. accounts in retirement plans were rolled Interest also operate, or are preparing to over to IRAs in 2018.100 Of those, about operate, under a standard that is Costs Associated With Annual Report of half, 1.8 million, were rolled over by functionally identical to the proposed Retrospective Review financial services professionals.101 exemption. To comply fully with the Section II(d) would require Financial Therefore, prior to transactions proposed exemption, however, these Institutions to conduct an annual necessitated by rollovers, participants entities may need to review their retrospective review reasonably are likely to receive required disclosures policies and procedures and amend designed to assist the Financial from their Investment Professionals. In their existing policies and procedures. Institution in detecting and preventing some cases, Financial Institutions and These additional steps would impose violations of, and achieving compliance Investment Professionals may send additional, but not substantial, costs at with the Impartial Conduct Standards required disclosures to participants, the Financial Institution level. and their own policies and procedures, particularly those with participant- The insurers and non-retail BDs and to produce a written report that is directed defined contribution accounts, currently operating under a suitability certified by the institution’s chief before providing investment advice. The standard in most states and largely executive officer. The Department Department welcomes comments that relying on transaction-based forms of estimates that this requirement will speak to the costs associated with compensation, such as commissions, impose $1.7 million in costs each required disclosures. would be required to establish written year.105 FINRA requires BDs to establish policies and procedures that comply and maintain a supervisory system Costs Associated With Written Policies with the Impartial Conduct Standards, if and Procedures reasonably designed to facilitate they choose to use this proposed compliance with applicable securities The Department estimates that exemption. These activities would laws and regulations,106 to test the developing policies and procedures likely involve higher cost increases than supervisory system, and to amend the prudently designed to ensure those experienced by IAs and retail BDs. system based on the testing.107 compliance with the Impartial Conduct To a large extent, however, the entities Furthermore, the BD’s chief executive Standards would cost approximately facing potentially higher costs would officer (or equivalent officer) must 102 $1.7 million in the first year. likely elect to rely on other existing annually certify that it has processes in The estimated compliance costs exemptions. In this regard, the burden place to establish, maintain, test, and reflect the different regulatory baselines estimates on these entities are likely modify written compliance policies and overestimated to the extent that many of written supervisory procedures resulting in a cost burden of $156,094. Assuming these entities would not use this the disclosures will require two sheets of paper at reasonably designed to achieve a cost $0.05 each, the estimated material cost for the proposed exemption. compliance with FINRA rules.108 paper disclosures is $14,608. Postage for each paper disclosure is expected to cost $0.55, resulting in a 103 See SEC Fiduciary Standard of Conduct 105 The Department assumes that 794 Financial printing and mailing cost of $94,954. Interpretation (Release No. IA–5248); see also A Institutions, comprising 20 BDs, 538 SEC-registered 99 The Department estimates approximately 56.4 Brief Overview: The Investment Adviser Industry, IAs, 217 state-registered IAs, and 20 insurers, would percent of participants receive disclosures North American Securities Administrators be likely to incur costs associated with producing electronically based on data from various data Association (2019), www.nasaa.org/industry- a retrospective review report. The Department sources including the National resources/investment-advisers/investment-adviser- estimates it will take a legal professional, at an Telecommunications and Information Agency guide/. (According to the NASAA, the anti-fraud hourly labor rate of $138.41, 5 hours for small firms (NTIA). In light of the 2019 Electronic Disclosure provisions of the Investment Advisers Act of 1940, and 10 hours for large firms to produce a Regulation, the Department estimates that the NASAA Model Rule 102(a)(4)–1, and most state retrospective review report, resulting in an additional 35.5 percent of participants receive them laws require IAs to act as fiduciaries. NASAA estimated cost burden of $973,297. The estimate further states, ‘‘Fiduciary duty requires the adviser electronically. In total, 91.9 percent of participants per-entity cost ranges from $692.07 for small to hold the client’s interest above its own in all are expected to receive disclosures electronically. entities to $1,384.14 for large entities. Additionally, 100 matters. Conflicts of interest should be avoided at U.S. Retirement-End Investor 2019: Driving the Department assumes that 9,845 Financial all costs. However, there are some conflicts that will Participant Outcomes with Financial Wellness Institutions, comprising 20 BDs, 6,729 SEC- inevitably occur . . . In these instances, the adviser Programs, The Cerulli Report (2019). registered IAs, 2,710 state-registered IAs, and 386 101 must take great pains to clearly and accurately Id. insurers, would be likely to incur costs associated describe those conflicts and how the adviser will 102 The Department assumes that 11,782 Financial with reviewing and certifying the report. The maintain impartiality in its recommendations to Institutions, comprising 1,957 BDs, 6,729 SEC- Department estimates it will take a legal registered IAs, 2,710 state-registered IAs, and 386 clients.’’ 104 professional 15 minutes for small firms and 30 insurers, are likely to engage in transactions See Form ADV [17 CFR 279.1] (Part 2A of minutes for large firms to review the report and Form ADV requires IAs to prepare narrative covered under this PTE. For a detailed description certify the exemption, resulting in an estimated cost brochures that contain information such as the of how the number of entities is estimated, see the burden of $718,806. The estimated per-entity cost types of advisory services offered, fee schedule, Paperwork Reduction Act section, below. The ranges from $41.41 for small entities to $82.82 for disciplinary information and conflicts of interest. Department assumes that it will take a legal large entities. For a detailed description of how the For example, item 10.C of part 2A asks IAs to professional, at an hourly labor rage of $138.41, number of entities for each cost burden is identify if certain relationships or arrangements 22.5 minutes at each small retail BD, 45 minutes at estimated, see the Paperwork Reduction Act create a material conflict of interest, and to describe each large retail BD, 5 hours at each small nonretail section. the nature of the conflict and how to address it. If BD, 10 hours at each large nonretail BD, 15 minutes 106 at each small IA, 30 minutes at each large IA, 5 an IA recommends other IAs for its clients and the Rule 3110. Supervision, FINRA Manual, hours at each small insurer, and 10 hours at each IA receives compensation directly or indirectly www.finra.org/rules-guidance/rulebooks/finra- large insurer to meet the requirement. This results from those advisers that creates a material conflict rules/3110. in a cost burden estimate of $1,664,127. of interest or the IA has other business relationships 107 Rule 3120. Supervisory Control System, Accordingly, the estimated per-entity cost ranges with those advisers that create a material conflict FINRA Manual, www.finra.org/rules-guidance/ from $34.60 for small IAs to $1,384.14 for large non- of interest, Item 10.D of Part 2A requires the IA to rulebooks/finra-rules/3120. retail BDs and insurers. These compliance cost discuss the material conflicts of interest that these 108 Rule 3130. Annual Certification of Compliance estimates are not discounted. practices create and how to address them.) and Supervisory Processes, FINRA Manual,

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Many insurers are already subject to Due to lack of data, the Department professionals who were not fiduciaries similar standards.109 For instance, the based the cost estimates associated with under the five-part test, thus the actual NAIC’s Model Regulation contemplates state-registered IAs on the assumption number of rollovers affected by this that insurers establish a supervision that 8 percent of state-registered IAs proposed exemption is likely lower than system that is reasonably designed to advising retirement plans currently do 1.8 million. The proposed exemption comply with the Model Regulation and not produce compliance review reports, would require the Financial Institution annually provide senior management and thus would incur costs associated to document why a recommended with a written report that details with the oversight conditions in the rollover is in the best interest of the findings and recommendations on the proposed exemption. As discussed Retirement Investor. As a best practice, effectiveness of the supervision above, compared with SEC-registered the SEC already encourages firms to system.110 States that have adopted the IAs, state-registered IAs tend to be record the basis for significant Model Regulation also require insurers smaller in terms of RAUM and staffing, investment decisions such as rollovers, to conduct annual audits and obtain and thus may not have formal although doing so is not required under certifications from senior managers. procedures in place to conduct Regulation Best Interest.115 In addition, Based on these regulatory baselines, the retrospective reviews to ensure some firms may voluntarily document Department believes the compliance regulatory compliance. If that were often significant investment decisions to costs attributable to this requirement the case, the Department’s assumption demonstrate compliance with would be modest. would likely underestimate costs. applicable law, even if not required.116 SEC-registered IAs are already subject However, because state-registered IAs Therefore, the Department expects that to Rule 206(4)–7, which requires them tend to be smaller than their SEC- many Financial Institutions already to adopt and implement written policies registered counterparts, they tend to document significant decisions like and procedures reasonably designed to handle fewer transactions, limit the rollovers. ensure compliance with the Advisers range of transactions they handle, and In estimating costs associated with Act and rules adopted thereunder and have fewer employees to supervise. rollover documentations, the review them annually for adequacy and Therefore, the costs associated with Department faces uncertainty with the effectiveness of their establishing procedures to conduct regards to the number of rollovers that internal retrospective reviews and implementation. Under the same rule, would be affected by the proposed produce compliance reports would SEC-registered IAs must designate a exemption. Given this uncertainty, likely be low. In sum, the Department chief compliance officer to administer below the Department discusses a range estimates that the costs associated with the policies and procedures. However, of cost estimates. For the lower-end cost the retrospective review requirement of they are not required to conduct an estimate, the Department estimates that the proposed exemption would be internal audit nor produce a report the costs for documenting the basis for approximately $1.7 million each year. detailing findings from its audit. investment decisions would come to Nonetheless, many seem to voluntarily Costs Associated With Rollover $15 million per year.117 This low-end produce reports after conducting Documentation estimate is based on the assumption that most financial services professionals internal audits. One compliance testing In 2018, slightly more than 3.6 already incorporate documenting survey reveals that about 92 percent of million retirement plan accounts rolled SEC-registered IAs voluntarily provide over to an IRA, while slightly less than rollover justifications in their regular an annual compliance program review 0.5 million accounts were rolled over to business practices and another report to senior management.111 Relying other retirement plans.112 Not all assumption that not all rollovers are on this information, the Department rollovers were managed by financial handled by financial services estimates that only 8 percent of SEC- services professionals. As discussed professionals who act in a fiduciary registered IAs advising retirement plans above, about half of all rollovers from 115 would incur costs associated with plans to IRAs were handled by financial Regulation Best Interest Release, 84 FR at producing a retrospective review report. 33360. services professionals, while the rest 116 According to a comment letter about the The rest would incur minimal costs to were self-directed.113 Based on this proposed Regulation Best Interest, BDs have a satisfy the conditions related to this information, the Department estimates strong financial incentive to retain records requirement. approximately 1.8 million participants necessary to document that they have acted in the best interest of clients, even if it is not required. obtained advice from financial services Another comment letter about the proposed 114 www.finra.org/rules-guidance/rulebooks/finra- professionals. Some of these rollovers Regulation Best Interest suggests that BDs generally rules/3130. likely involved financial services maintain documentation for suitability purposes. 109 The previous NAIC Suitability in Annuity 117 For those rollovers affected by this proposed Transactions Model Regulation (2010) had been 112 U.S. Retirement-End Investor 2019, supra note exemption it would take, on average, 10 minutes adopted by many states before the newer NAIC 100. (To estimate costs associated with per rollover to document justifications. Thus, the Model Regulation was approved in 2020. Both documenting rollovers, the Department did not Department estimates almost 75,500 burden hours previous and updated Model Regulations contain include rollovers from plans to plans because plan- in aggregate and slightly less than $15 million similar standards as written report of retrospective to-plan rollovers are unlikely to be mediated by assuming $194.77 hourly rate for personal financial review conditions of the proposed exemption. Investment Professionals. Also plan-to-plan advisor. The Department assumes that financial 110 NAIC Suitability in Annuity Transactions rollovers occur far less frequently than plan-to-IRA services professionals would spend on average 10 Model Regulation, Spring 2020, Section 6.C.(2)(i), rollovers. Thus, even if plan-to-plan rollovers were minutes to document the basis for rollover available at https://www.naic.org/store/free/MDL- included in the cost estimation, the impact would recommendations. The Department understands 275.pdf. (The same requirement is found in the likely be small.) that financial services professionals seek and gather previous NAIC Suitability in Annuity Transactions 113 Id. information regarding to investor profiles in Model Regulation (2010), section 6.F.(1)(f).) 114 Another report suggested a higher share, 70 accordance with other regulators’ rules. Further, 111 2018 Investment Management Compliance percent of households owning IRAs held their IRAs financial professionals often discuss the basis for Testing Survey, Investment Adviser Association through Investment Professionals. Note that this is their recommendations and associated risks with (Jun. 14, 2018), https:// household level data based on an IRA owners’ their clients as a best practice. After collecting higherlogicdownload.s3.amazonaws.com/ survey, which was not particularly focused on relevant information and discussing the basis for INVESTMENTADVISER/aa03843e-7981-46b2-aa49- rollovers. (See Sarah Holden & Daniel Schrass, ‘‘The certain recommendations with clients, the c572f2ddb7e8/UploadedImages/publications/2018- Role of IRAs in US Households’ Saving for Department believes that it would take relatively Investment-Management_Compliance-Testing- Retirement, 2018,’’ ICI Research Perspective, vol. short time to document justifications for rollover Survey-Results-Webcast_pptx.pdf. 24, no. 10 (Dec. 2018).) recommendations.

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capacity.118 For the upper-end cost professionals’ practices about comments regarding the burden estimate, the Department assumes that documenting rollover associated with the recordkeeping all rollovers involving financial services recommendations, particularly whether requirement. professionals would be affected by the financial services professionals often Regulatory Alternatives proposed exemption. Then the utilize a form with a list of common estimated costs would come to $59 reasons for rollovers and how long on The Department considered various million per year.119 For the primary cost average it would take for a financial alternative approaches in developing estimate, the Department assumes that services professional to document a this proposed exemption. Those 67.4 percent of rollovers involving rollover recommendation.122 alternatives are discussed below. financial services professionals would Costs Associated With Recordkeeping No New Exemption be affected by the proposed The Department considered merely exemption.120 Under this assumption, Section IV of the proposed exemption leaving in place the existing exemptions the estimated costs would be $40 would require Financial Institutions to that provide prohibited transaction million per year.121 The Department maintain records demonstrating relief for investment advice acknowledges that uncertainty still compliance with the exemption for 6 transactions. However, the existing remains as some financial services years. The Financial Institutions would exemptions generally apply to more professionals who do not generally also be required to make records limited categories of transactions and serve as fiduciaries of their Plan clients available to regulators, Plans, and investment products, and they include may act in a fiduciary capacity in participants. Recordkeeping conditions that are tailored to the certain rollover recommendations, and requirements in Section IV are generally particular transactions or products thus would be affected by the proposed consistent with requirements made by the SEC and FINRA.123 In addition, the covered under each exemption. exemption. Alternatively, the opposite Therefore, under the existing can be true: Financial services recordkeeping requirements correspond to the 6-year period in section 413 of exemptions, Financial Institutions may professionals who usually serve as find it inefficient to implement advice fiduciaries of their Plan clients may act ERISA. The Department understands that many firms already maintain programs for all of the different in a non-fiduciary capacity in certain products and services they offer. By rollover recommendations, and thus records, as required in Section IV, as part of their regular business practices. providing a single set of conditions for would not be affected by the proposed all investment advice transactions, this exemption. The Department welcomes Therefore, the Department expects that the recordkeeping requirement in proposal aims to promote the use and any comments and data that can help availability of investment advice for all more precisely estimating the number of Section IV would impose a negligible burden.124 The Department welcomes types of transactions in a manner that rollovers affected by the exemption. In aligns with the conduct standards of addition, the Department invites 122 The Department assumes that financial other regulators, such as the SEC. comments about financial services services professionals would spend on average 10 minutes to document the basis for rollover Including an Independent Audit 118 To estimate costs, the Department further recommendations. The Department understands Requirement in the Proposed Exemption assumes that approximately 50 percent of 1.8 that financial services professionals seek and gather The proposal would require Financial million rollovers involve financial professionals information regarding to investor profiles in who already document rollover recommendations accordance with other regulators’ rules. Further, Institutions to conduct a retrospective as a best practice. Additionally, the Department financial professionals often discuss the basis for review, at least annually, designed to assumes half of the remaining half of rollovers, thus their recommendations and associated risks with detect and prevent violations of the an additional quarter of the total 1.8 million their clients as a best practice. After collecting Impartial Conduct Standards, and to rollovers, are handled by financial professionals relevant information and discussing the basis for who act in a non-fiduciary capacity. Thus the certain recommendations with clients, the ensure compliance with the policies and Department assumes that approximately three- Department believes that it would take relatively procedures governing the exemption. quarters of 1.8 million rollovers would not be short time to document justifications for rollover The exemption does not require that the affected by the proposed exemption, while one- recommendations. However, the Department review be conducted by an independent quarter of 1.8 million rollovers would be affected. welcomes comments about the burden hours 119 Assuming that it would take, on average, 10 associated with documenting rollover party, allowing Financial Institutions to minutes per rollover to document justifications, the recommendations. self-review. Department estimates about 301,850 burden hours 123 The SEC’s Regulation Best Interest amended As an alternative to this approach, the in aggregate and slightly less than $59 million Rule 17a–4(e)(5) to require that BDs retain all Department considered requiring assuming $194.77 hourly rate for personal financial records of the information collected from or independent audits to ensure advisor. provided to each retail customer pursuant to 120 In 2019, a survey was conducted to financial Regulation Best Interest for at least 6 years after the compliance under the exemption. The services professionals who hold more than 50 earlier of the date the account was closed or the Department decided against this percent of their practice’s assets under management date on which the information was last replaced or in employer-sponsored retirement plans. These updated. FINRA Rule 4511 also requires its records electronically. Electronic storage prices financial services professionals include both BDs members preserve for a period of at least 6 years have decreased substantially as cloud services and IAs. In addition, 45 percent of those those FINRA books and records for which there is become more widely available. For example, cloud professionals indicated that they make a proactive no specified period under the FINRA rules or storage space costs on average $0.018 to $0.021 per effort to pursue IRA rollovers from their DC plan applicable Exchange Act rules. GB per month. Some estimate that approximately clients. According to this survey, approximately 124 The Department notes that insurers that are 250,000 PDF files or other typical office documents 32.6 percent responded that they function in a non- expected to use the proposed exemption are can be stored on 100GB. Accordingly, the fiduciary capacity. Therefore, the Department generally not subject to the SEC’s Regulation Best Department believes that maintaining records in assumes that approximately 67.4 percent of Interest and FINRA rules. The Department electronic storage for an additional year or two financial service professionals serve their Plan understands, however, that some states’ insurance would not impose a significant cost burden on the clients as fiduciaries. See U.S. Defined Contribution regulations require insurers to retain similar records affected 386 insurers. (For more detailed pricing 2019: Opportunities for Differentiation in a for less than six years. For example, some states information of three large cloud service providers, Competitive Landscape, The Cerulli Report (2019). require insurers to maintain records for five years see https://cloud.google.com/products/calculator; 121 Assuming that it would take, on average, 10 after the insurance transaction is completed. Thus, or https://azure.microsoft.com/en-us/pricing/ minutes per rollover to document justifications, the the recordkeeping requirement of the proposed calculator/; or https:// Department estimates over 203,000 burden hours in exemption would likely impose additional burden calculator.s3.amazonaws.com/index.html.) The aggregate and slightly less than $40 million on the 386 insurers that the Department estimates Department welcomes comments on this assuming $194.77 hourly rate for personal financial would rely on this proposed exemption. However, assessment and the effect of the recordkeeping advisor. the Department expects most insurers to maintain requirement on insurers.

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approach to avoid the significant cost are to respond, including through the for mailing clerical personnel, and burden that this requirement would use of appropriate automated, $138.41 for a legal professional; 125 impose. The proposal instead requires electronic, mechanical, or other • Approximately 11,782 Financial that Financial Institutions provide a technological collection techniques or Institutions will take advantage of the written report documenting the other forms of information technology Proposed PTE and they will use the retrospective review, and supporting (e.g., permitting electronic submission Proposed PTE in conjunction with information, to the Department and of responses). transactions involving nearly all of their other regulators within 10 business days Comments should be sent to the clients that are defined benefit plans, of a request. The Department believes Office of Information and Regulatory defined contribution plans, and IRA this proposed requirement compels Affairs, Office of Management and holders.126 Financial Institutions to take the review Budget, Room 10235, New Executive Disclosures, Documentation, obligation seriously, regardless of Office Building, Washington, DC, 20503; whether they choose to hire an Retrospective Review, and Attention: Desk Officer for the Recordkeeping independent auditor to conduct the Employee Benefits Security review. Administration. OMB requests that Section II(b) of the Proposed PTE Paperwork Reduction Act comments be received within 30 days of would require Financial Institutions to furnish Retirement Investors with a As part of its continuing effort to publication of the Proposed PTE to ensure their consideration. disclosure prior to engaging in a covered reduce paperwork and respondent transaction. Section II(b)(1) would PRA Addressee: Address requests for burden, the Department conducts a require Financial Institutions to copies of the ICR to G. Christopher preclearance consultation program to acknowledge in writing that the Cosby, Office of Policy and Research, provide the general public and Federal Financial Institution and its Investment U.S. Department of Labor, Employee agencies with an opportunity to Professionals are fiduciaries under Benefits Security Administration, 200 comment on proposed and continuing ERISA and the Code, as applicable, with Constitution Avenue NW, Room N– collections of information in accordance respect to any investment advice 5718, Washington, DC, 20210. with the Paperwork Reduction Act of provided to the Retirement Investors. Telephone (202) 693–8425; Fax: (202) 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)). Section II(b)(2) would require Financial 219–5333. These are not toll-free This helps to ensure that the public Institutions to provide a written numbers. ICRs submitted to OMB also understands the Department’s collection description of the services they provide are available at www.RegInfo.gov. instructions, respondents can provide and any material conflicts of interest. the requested data in the desired format, As discussed in detail below, the The written description must be reporting burden (time and financial Proposed PTE would require Financial accurate in all material respects. resources) is minimized, collection Institutions and/or their Investment Financial Institutions will generally be instruments are clearly understood, and Professionals to (1) make certain required to provide the disclosure to the Department can properly assess the disclosures to Retirement Investors, (2) each Retirement Investor once, but impact of collection requirements on adopt written policies and procedures, Financial Institutions may need to respondents. (3) document the basis for rollover provide updated disclosures to ensure Currently, the Department is soliciting recommendations, (4) prepare a written accuracy. comments concerning the proposed report of the retrospective review, and Section II(c)(1) of the Proposed PTE information collection request (ICR) (5) maintain records showing that the included in the proposed Improving would require Financial Institutions to conditions have been met to receive establish, maintain, and enforce written Investment Advice for Workers & relief under the proposed exemption. Retirees (‘‘Proposed PTE’’). A copy of policies and procedures prudently These requirements are ICRs subject to designed to ensure that they and their the ICR may be obtained by contacting the Paperwork Reduction Act. the PRA addressee shown below or at Investment Professionals comply with www.RegInfo.gov. The Department has made the the Impartial Conduct Standards. The Department has submitted a copy following assumptions in order to Section II(c)(2) would further require of the Proposed PTE to the Office of establish a reasonable estimate of the that the Financial Institutions design the Management and Budget (OMB) in paperwork burden associated with these policies and procedures to mitigate accordance with 44 U.S.C. 3507(d) for ICRs: conflicts of interest. review of its information collections. • Disclosures distributed The Department and OMB are electronically will be distributed via 125 The Department’s 2018 hourly wage rate means already used by respondents in estimates include wages, benefits, and overhead, particularly interested in comments and are calculated as follows: mean wage data from that: the normal course of business, and the the 2018 National Occupational Employment • Evaluate whether the collection of costs arising from electronic distribution Survey (May 2018, www.bls.gov/news.release/ information is necessary for the proper will be negligible; archives/ocwage_03292019.pdf), wages as a percent performance of the functions of the • of total compensation from the Employer Cost for Financial Institutions will use Employee Compensation (December 2018, agency, including whether the existing in-house resources to prepare www.bls.gov/news.release/archives/ecec_ information will have practical utility; 03192019.pdf), and overhead cost corresponding to • the disclosures, policies and Evaluate the accuracy of the procedures, rollover documentations, each 2-digit NAICS code from the Annual Survey agency’s estimate of the burden of the of Manufacturers (December 2017, www.census.gov/ and retrospective reviews, and to data/Tables/2016/econ/asm/2016-asm.html) collection of information, including the maintain the recordkeeping systems multiplied by the percent of each occupation within validity of the methodology and necessary to meet the requirements of that NAICS industry code based on a matrix of assumptions used; the Proposed PTE; detailed occupation employment for each NAICS • Enhance the quality, utility, and industry from the BLS Office of Employment • clarity of the information to be A combination of personnel will projections (2016, www.bls.gov/emp/data/ perform the tasks associated with the occupational-data.htm). collected; and 126 • ICRs at an hourly wage rate of $194.77 For this analysis, ‘‘IRA holders’’ include Minimize the burden of the rollovers from ERISA plans. The Department collection of information on those who for a personal financial advisor, $64.11 welcomes comments on this estimate.

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Section II(c)(3) of the Proposed PTE 2,710 state-registered IAs,129 and 386 Financial Institutions and are likely to would require Financial Institutions to insurers,130 are likely to engage in engage in transactions covered under document the specific reasons for any transactions covered under this PTE. this PTE. Of these 1.8 million rollover recommendation and show that Each would need to provide disclosures Retirement Investors, it is assumed that the rollover is in the best interest of the that (1) acknowledge its fiduciary status 8.1 percent 138 or 146,083 Retirement Retirement Investor. and (2) identify the services it provides Investors, would receive paper Under Section II(d) of the Proposed and any material conflicts of interest. disclosures. Distributing paper PTE, Financial Institutions would be The Department estimates that disclosures is estimated to take a required to conduct an annual preparing a disclosure indicating clerical professional 1 minute per retrospective review that is reasonably fiduciary status would take a legal disclosure, resulting in an hourly designed to prevent violations of the professional between 5 and 30 minutes, burden of 2,435 139 and an equivalent Proposed PTE’s Impartial Conduct depending on the nature of the cost burden of $156,094.140 Assuming Standards and the institution’s own business,131 resulting in an hour burden the disclosures will require two sheets policies and procedures. The of 1,599 132 and a cost burden of of paper at a cost $0.05 each, the methodology and results of the $221,276.133 Preparing a disclosure estimated material cost for the paper retrospective review would be reduced identifying services provided and disclosures is $14,608. Postage for each to a written report that is provided to conflicts of interest would take a legal paper disclosure is expected to cost the Financial Institution’s chief professional an estimated 5 minutes to $0.55, resulting in a printing and executive officer and chief compliance 5 hours, depending on the nature of the mailing cost of $94,954. business,134 resulting in an hour burden officer (or equivalent officers). The chief Written Policies and Procedures of 3,691 135 and an equivalent cost executive officer would be required to Requirement certify that (1) the officer has reviewed burden of $510,877.136 the report of the retrospective review, The Department estimates that The Department assumes that 11,782 and (2) the Financial Institution has in approximately 1.8 million Retirement Financial Institutions, comprising 1,957 place policies and procedures prudently Investors 137 have relationships with BDs,141 6,729 SEC-registered IAs,142 designed to achieve compliance with the conditions of the Proposed PTE, and Compliance 2019 Survey estimates that 52 percent 138 According to data from the National of IAs have a pension consulting business. The Telecommunications and Information Agency (3) the Financial Institution has a estimated number of IAs affected by this exemption (NTIA), 37.7 percent of individuals age 25 and over prudent process for modifying such is the product of the SEC’s estimate of SEC- have access to the internet at work. According to policies and procedures. The process for registered IAs in 2018 and the IAA’s estimate of the a Greenwald & Associates survey, 84 percent of modifying policies and procedures percent of IAs with a pension consulting business. plan participants find it acceptable to make 129 The SEC estimated that there were 16,939 electronic delivery the default option, which is would need to be responsive to state-registered IAs that were not dually registered used as the proxy for the number of participants business, regulatory, and legislative as BDs as of December 2018 (see Form CRS who will not opt-out of electronic disclosure if changes and events, and the chief Relationship Summary Release). The NASAA 2019 automatically enrolled (for a total of 31.7 percent executive officer would be required to estimates that 16 percent of state-registered IAs receiving electronic disclosure at work). have a pension consulting business. The estimated Additionally, the NTIA reports that 40.5 percent of periodically test their effectiveness. The number of state-registered IAs affected by this individuals age 25 and over have access to the review, report, and certification would exemption is the product of the SEC’s estimate of internet outside of work. According to a Pew be completed no later than 6 months state-registered IAs in 2018 and NASAA’s estimate Research Center survey, 61 percent of internet users of the percent of state-registered IAs with a pension use online banking, which is used as the proxy for following the end of the period covered the number of internet users who will affirmatively by the review. The Financial Institution consulting business. 130 NAIC estimates that the number of insurers consent to receiving electronic disclosures (for a would be required to retain the report, directly writing annuities as of 2018 is 386. total of 24.7 percent receiving electronic disclosure outside of work). Combining the 31.7 percent who certification, and supporting data for at 131 The Department assumes that it will take each receive electronic disclosure at work with the 24.7 least 6 years, and to make these items retail BD firm 15 minutes, each nonretail BD or percent who receive electronic disclosure outside of available to the Department, any other insurance firm 30 minutes, and each registered IA work produces a total of 56.4 percent who will federal or state regulator of the Financial 5 minutes to prepare a disclosure conveying receive electronic disclosure overall. In light of the fiduciary status. 2019 Electronic Disclosure Regulation, the Institution, or any applicable self- 132 Burden hours are calculated by multiplying Department estimates that 81.5 percent of the regulatory organization within 10 the estimated number of each firm type by the remaining 43.6 percent of individuals will receive business days. estimated time it will take each firm to prepare the the disclosures electronically. In total, 91.9 percent Section IV sets forth the disclosure. of participants are expected to receive disclosures 133 recordkeeping requirements in the The hourly cost burden is calculated by electronically. multiplying the burden hour of each firm associated 139 Burden hours are calculated by multiplying Proposed PTE. with preparation of the disclosure by the hourly the estimated number of plans receiving the Production and Distribution of Required wage of a legal professional. disclosures non-electronically by the estimated time 134 The Department assumes that it will take each it will take to prepare the physical disclosure. Disclosures retail BD or IA firm 5 minutes, each small nonretail 140 The hourly cost burden is calculated as the The Department assumes that 11,782 BD or small insurer 60 minutes, and each large burden hours associated with the physical nonretail BDs or larger insurer 5 hours to prepare preparation of each non-electronic disclosure by the Financial Institutions, comprising 1,957 a disclosure conveying services provided and any hourly wage of a clerical professional. 127 128 BDs, 6,729 SEC-registered IAs, conflicts of interest. 141 The SEC estimated that there were 3,764 BDs 135 Burden hours are calculated by multiplying as of December 2018 (see Form CRS Relationship 127 The SEC estimated that there were 3,764 BDs the estimated number of each firm type by the Summary Release). The IAA Compliance 2019 as of December 2018 (see Form CRS Relationship estimated time it will take each firm to prepare the Survey estimates that 52 percent of IAs have a Summary Release). The IAA Compliance 2019 disclosure. pension consulting business. The estimated number Survey estimates that 52 percent of IAs have a 136 The hourly cost burden is calculated by of BDs affected by this exemption is the product of pension consulting business. The estimated number multiplying the burden hour of each firm associated the SEC’s estimate of total BDs in 2018 and IAA’s of BDs affected by this exemption is the product of with preparation of the disclosure by the hourly estimate of the percent of IAs with a pension the SEC’s estimate of total BDs in 2018 and IAA’s wage of a legal professional. consulting business. estimate of the percent of IAs with a pension 137 The Department estimates the number of 142 The SEC estimated that there were 12,940 consulting business. affected plans and IRAs be equal to 50 percent of SEC-registered IAs, who were not dually registered 128 The SEC estimated that there were 12,940 rollovers from plans to IRAs. Cerulli has estimated as BDs, as of December 2018 (see Form CRS SEC-registered IAs that were not dually registered the number of plans rolled into IRAs to be Relationship Summary Release). The IAA as BDs as of December 2018 (see Form CRS 3,622,198 (see U.S. Retirement-End Investor 2019, Compliance 2019 Survey estimates that 52 percent Relationship Summary Release). The IAA supra note 100). of IAs have a pension consulting business. The

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2,710 state registered IAs,143 and 386 services professionals already broker dealers are already held to a insurers,144 are likely to engage in incorporate documenting the basis for standard functionally identical to that of transactions covered under this PTE. rollover recommendations in their the retrospective review requirements of The Department estimates that regular business practices and another this proposed exemption. Accordingly, establishing, maintaining, and enforcing assumption that not all rollovers are in this analysis, the Department written policies and procedures handled by financial services assumes that broker dealers will incur prudently designed to ensure professionals who act in a fiduciary minimal costs to meet this requirement. compliance with the Impartial Conduct capacity.150 For the upper-end cost In 2018, the Investment Adviser Standards will take a legal professional estimate, the Department assumes that Association estimated that 92 percent of between 15 minutes and 10 hours, all rollovers involving financial services SEC-registered IAs voluntarily provide depending on the nature of the professionals would be affected by the an annual compliance program review business.145 This results in an hour proposed exemption. Then the costs report to senior management.160 The burden of 12,023 146 and an equivalent would be $59 million per year.151 For Department estimates that only 8 cost burden of $1,664,127.147 the primary cost estimate, the percent, or 538,161 of SEC-registered IAs Rollover Documentation Requirement Department assumes that 67.4 percent of advising retirement plans would incur rollovers would be affected by the costs associated with producing a To meet the requirement of the proposed exemption.152 Under this retrospective review report. Due to lack rollover documentation requirement, assumption, the costs would be $40 of data, the Department assumes that Financial Institutions must document million per year.153 The Department state-registered IAs exhibit similar the specific reasons that any invites comments and data regarding the retrospective review patterns and recommendation to roll over assets is in number of rollovers affected by the 162 the best interest of the Retirement estimates that 8 percent, or 217, of proposed exemption and the burden state-registered IAs would also incur Investor. The Department estimates that hours associated with documenting the 1.8 million retirement plan accounts 148 costs associated with producing a basis for rollover recommendations. The retrospective review report. were rolled into IRAs in accordance Department estimates that documenting As SEC-registered IAs are already with advice from a financial services each rollover recommendation will take subject to SEC Rule 206(4)–7 the professional. Due to uncertainty, the a personal financial advisor 10 Department assumes these IAs would Department discusses a range of cost minutes,154 resulting in 203,447 155 incur minimal costs to satisfy the estimates. For the lower-end cost burden hours and an equivalent cost estimate, the Department estimates that conditions related to this requirement. burden of $39,626,306.156 the costs for documenting the basis for Insurers in many states are already investment decisions would come to Annual Retrospective Review subject state insurance law based on the $15 million per year.149 This is based on Requirement the assumption that most financial Under the internal retrospective 160 2018 Investment Management Compliance Testing Survey, Investment Adviser Association review requirement, a Financial (Jun. 14, 2018), https:// estimated number of IAs affected by this exemption Institution is required to (1) conduct an is the product of the SEC’s estimate of SEC- higherlogicdownload.s3.amazonaws.com/ registered IAs in 2018 and IAA’s estimate of the annual retrospective review reasonably INVESTMENTADVISER/aa03843e-7981-46b2-aa49- percent of IAs with a pension consulting business. designed to assist the Financial c572f2ddb7e8/UploadedImages/publications/2018- Investment-Management_Compliance-Testing- 143 The SEC estimated that there were 16,939 Institution in detecting and preventing Survey-Results-Webcast_pptx.pdf. state-registered IAs who were not dually registered violations of, and achieving compliance 161 as BDs as of December 2018 (see Form CRS The SEC estimated that there were 12,940 Relationship Summary Release). The NASAA 2019 with the Impartial Conduct Standards SEC-registered IAs that were not dually registered estimates that 16 percent of state-registered IAs and their policies and procedures and as BDs as of December 2018 (see Form CRS have a pension consulting business. The estimated (2) produce a written report that is Relationship Summary Release). The IAA Compliance 2019 Survey estimates that 52 percent number of state-registered IAs affected by this certified by the Financial Institution’s exemption is the product of the SEC’s estimate of of IAs have a pension consulting business. The IAA state-registered IAs in 2018 and NASAA’s estimate chief executive officer. Investment Management Compliance Testing of the percent of state-registered IAs with a pension The Department understands that, as Survey estimates that 92 percent of SEC-registered consulting business. per FINRA Rule 3110,157 FINRA Rule IAs provide an annual compliance program review report to senior management. The estimated 144 NAIC estimates that 386 insurers were directly 158 159 3120, and FINRA Rule 3130, number of IAs affected by this exemption who do writing annuities as of 2018. not meet the retrospective review requirement is the 145 The Department assumes that it will take each 150 See supra note 118. product of the SEC’s estimate of SEC-registered IAs small retail BD 22.5 minutes, each large retail BD 151 See supra note 119. in 2018, the IAA’s estimate of the percent of IAs 45 minutes, each small nonretail BD 5 hours, each 152 with a pension consulting business, and IAA’s large nonretail BD 10 hours, each small IA 15 See supra note 120. 153 See supra note 121. estimate of the percent of IA’s who do not provide minutes, each large IA 30 minutes, each small an annual compliance program review report. insurer 5 hours, and each large insurer 10 hours to 154 See supra note 122. 162 The SEC estimated that there were 16,939 meet the requirement. 155 Burden hours are calculated by multiplying state-registered IAs that were not dually registered 146 the estimated number of rollovers affected by this Burden hours are calculated by multiplying as BDs as of December 2018 (see Form CRS proposed exemption by the estimated hours needed the estimated number of each firm type by the Relationship Summary Release). The NASAA 2019 to document each recommendation. estimated time it will take each firm to establish, estimates that 16 percent of state-registered IAs 156 maintain, and enforce written policies and The hourly cost burden is calculated as the have a pension consulting business. The IAA procedures. burden hour of each firm associated with meeting Investment Management Compliance Testing 147 The hourly cost burden is calculated as the the rollover documentation requirement multiplied Survey estimates that 92 percent of SEC-registered burden hour of each firm associated with meeting by the hourly wage of a personal financial advisor. IAs provide an annual compliance program review the written policies and procedures requirement 157 Rule 3110. Supervision, FINRA Manual, report to senior management. The Department multiplied by the hourly wage of a legal www.finra.org/rules-guidance/rulebooks/finra- assumes state-registered IAs exhibit similar professional. rules/3110. retrospective review patterns as SEC-registered IAs. 148 Cerulli has estimated the number of plans 158 Rule 3120. Supervisory Control System, The estimated number of state-registered IAs rolled into IRAs to be 3,622,198 (see U.S. FINRA Manual, www.finra.org/rules-guidance/ affected by this exemption is the product of the Retirement-End Investor 2019, supra note 100). The rulebooks/finra-rules/3120. SEC’s estimate of state-registered IAs in 2018, Department estimates that 50 percent of these 159 Rule 3130. Annual Certification of Compliance NASAA’s estimate of the percent of state-registered rollovers will be handled by a financial and Supervisory Processes, FINRA Manual, IAs with a pension consulting business, and IAA’s professional. www.finra.org/rules-guidance/rulebooks/finra- estimate of the percent of IA’s who do not provide 149 See supra note 117. rules/3130. an annual compliance program review report.

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NAIC’s Model Regulation, 163 Thus, the • Affected Public: Business or other Affected Small Entities Department assumes that insurers for-profit institution. The Small Business Administration would incur negligible costs associated • Estimated Number of Respondents: (SBA),170 pursuant to the Small with producing a retrospective review 11,782. Business Act,171 defines small report. This is estimated to take a legal • Estimated Number of Annual businesses and issues size standards by professional 5 hours for small firms and Responses: 1,811,099. industry. The SBA defines a small 10 hours for large firms, depending on • Frequency of Response: Initially, business in the Financial Investments the nature of the business. This results and Related Activities Sector as a 164 Annually, and when engaging in in an hour burden of 7,032 and an business with up to $41.5 million in 165 exempted transaction. equivalent cost burden of $973,297. annual receipts. Due to a lack of data • Estimated Total Annual Burden In addition to conducting the audit and shared jurisdictions, for purpose of and producing a report, Financial Hours: 234,565 during the first year and performing Regulatory Flexibility Institutions will need to review the 217,253 in subsequent years. Analyses pursuant to section 601(3) of report and certify the exemption. This is • Estimated Total Annual Burden the Regulatory Flexibility Act, the estimated to take a financial Cost: $94,954 during the first year and Department, after consultation with professional 15 minutes for small firms $94,954 in subsequent years. SBA’s Office of Advocacy, defines small and 30 minutes for large firms, entities included in this analysis depending on the nature of the business. Regulatory Flexibility Act differently from the SBA definitions.172 This results in an hour burden of The Regulatory Flexibility Act 166 For instance, in this analysis, the small- 4,340 and an equivalent cost burden (RFA) 168 imposes certain requirements 167 business definitions for BDs and SEC- of $718,806. The Department on rules subject to the notice and welcomes any comments about burden registered IAs are consistent with the comment requirements of section 553(b) SEC’s definitions, as these entities are hours associated with producing an of the Administrative Procedure Act or annual review report and certifying it. subject to the SEC’s rules as well as the any other law.169 Under section 603 of ERISA.173 As with SEC-registered IAs, Overall Summary the RFA, agencies must submit an initial the size of state-registered IAs is Overall, the Department estimates that regulatory flexibility analysis (IRFA) of determined based on total value of the in order to meet the conditions of this a proposal that is likely to have a assets they manage.174 The size of PTE, 11,782 Financial Institutions will significant economic impact on a insurance companies is based on annual produce 1.8 million disclosures and substantial number of small entities, sales of annuities. The Department notices annually. These disclosures and such as small businesses, organizations, requests comments on the notices will result in 234,565 burden and governmental jurisdictions. The appropriateness of the size standard hours during the first year and 217,253 Department determines that this used to evaluate the impact of the burden hours in subsequent years, at an proposed exemption will likely have a proposed exemption on small entities. equivalent cost of $43.9 million and significant economic impact on a In December 2018, there were 985 $41.5 million respectively. The substantial number of small entities. small-business BDs and 528 SEC- disclosures and notices in this Therefore, the Department provides its registered, small-business IAs.175 The exemption will also result in a total cost IRFA of the proposed exemption, below. Department estimates that burden for materials and postage of The Department welcomes comments approximately 52 percent of these $94,954 annually. regarding this assessment. small-businesses will be affected by the 176 These paperwork burden estimates Need for and Objectives of the Rule proposed exemption. In December are summarized as follows: 2018, the Department estimates there • Type of Review: New collection As discussed earlier in this preamble, were approximately 10,840 small state- (Request for new OMB Control the proposed class exemption would registered IAs,177 of which about 1,700 Number). allow investment advice fiduciaries to • Agency: Employee Benefits Security receive compensation and engage in 170 13 CFR 121.201. Administration, Department of Labor. transactions that would otherwise 171 15 U.S.C. 631 et seq. • Title: Improving Investment Advice violate the prohibited transaction 172 The Department consulted with the Small Business Administration Office of Advocacy in for Workers & Retirees. provisions of ERISA and the Code. As • making this determination as required by 5 U.S.C. OMB Control Number: 1210–NEW. such, the proposed exemption would 603(c). grant Financial Institutions and 173 17 CFR parts 230, 240, 270, and 275, https:// 163 NAIC Suitability in Annuity Transactions Investment Professionals the flexibility www.sec.gov/rules/final/33-7548.txt. Model Regulation, Spring 2020, Section 6.C.(2)(i), to address different business models, 174 Due to lack of available data, the Department available at https://www.naic.org/store/free/MDL- includes state-registered IAs managing assets less 275.pdf. (The same requirement is found in the and would lessen their overall than $30 million as small entities in this analysis. previous NAIC Suitability in Annuity Transactions regulatory burden by coordinating 175 See Form CRS Relationship Summary; Model Regulation (2010), section 6.F.(1)(f).) potentially overlapping regulatory Amendments to Form ADV, 84 FR 33492 (Jul. 12, 164 Burden hours are calculated by multiplying requirements. The exemption 2019). the estimated number of each firm type by the 176 conditions, including the Impartial 2019 Investment Management Compliance estimated time it will take each firm to review the Testing Survey, Investment Adviser Association report and certify the exemption. Conduct Standards and other conditions (Jun. 18, 2019), https:// 165 The hourly cost burden is calculated by supporting the standards, are expected higherlogicdownload.s3.amazonaws.com/ multiplying the burden hours for reviewing the to provide protections to Retirement INVESTMENTADVISER/aa03843e-7981-46b2-aa49- report and certifying the exemption requirement by Investors. Therefore, the Department c572f2ddb7e8/UploadedImages/about/190618_ the hourly wage of a legal professional. IMCTS_slides_after_webcast_edits.pdf. 166 Burden hours are calculated by multiplying expects the proposed exemption to 177 The SEC estimates there were approximately the estimated number of each firm type by the benefit Retirement Investors that are 17,000 state-registered IAs (see Form CRS estimated time it will take each firm to review the small entities and to provide efficiencies Relationship Summary; Amendments to Form ADV, report and certify the exemption. to small Financial Institutions. 84 FR 33492 (Jul. 12, 2019)). The Department 167 The hourly cost burden is calculated by estimates that about 64 percent of state-registered multiplying the burden hours for reviewing the IAs manage assets less than $30 million, and it report and certifying the exemption requirement by 168 5 U.S.C. 601 et seq. considers such entities small businesses. (See 2018 the hourly wage of a financial professional. 169 5 U.S.C. 601(2), 603(a); see also 5 U.S.C. 551. Investment Adviser Section Annual Report, North

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are estimated to be affected by the writing annuities in 2018,179 316 of the distribution of affected entities by proposed exemption.178 There were which the Department estimates are size. approximately 386 insurers directly small entities.180 Table 1 summarizes

TABLE 1—DISTRIBUTION OF AFFECTED ENTITIES BY SIZE

BDs SEC-registered IAs State-registered IAs Insurers

Small ...... 985 26% 528 4% 10,840 64% 316 82% Large ...... 2,779 74% 12,412 96% 6,099 36% 70 18%

Total ...... 3,764 100% 12,940 100% 16,939 100% 386 100%

Projected Reporting, Recordkeeping, entities. For example, the Department the alternative of requiring a Financial and Other Compliance Requirements estimates that a small entity would Institution to engage an independent incur, on average, an additional $1,000 party to provide an external audit. The As discussed above, the proposed in compliance costs to meet the Department elected not to propose this exemption would provide Financial conditions of the proposed exemption. requirement to avoid the increased costs Institutions and Investment These additional costs would represent this approach would impose. Smaller Professionals with the flexibility to 0.4 percent of the net capital of BD with Financial Institutions may have been choose between the new proposed $250,000. A BD with less than $500,000 disproportionately impacted by such exemption or existing exemptions, in net capital is generally considered costs, which would have been contrary depending on their individual needs small, according to the SEC. to the Department’s goals of promoting and business models. Furthermore, the access to investment advice for Duplicate, Overlapping, or Relevant proposed exemption would provide Retirement Investors. Further, the Federal Rules Financial Institutions and Investment Department is not convinced that an Professionals broader, more flexible ERISA and the Code rules governing independent, external audit would yield prohibited transaction relief than is advice on the investment of retirement useful information commensurate with currently available, while safeguarding assets overlap with SEC rules that the cost, particularly to small entities. the interests of Retirement Investors. In govern the conduct of IAs and BDs who Instead, the proposal requires that this regard, this proposed exemption advise retail investors. The Department Financial Institutions to document their could present a less burdensome considered conduct standards set by retrospective review, and provide it, and compliance alternative for some other regulators, such as SEC, state supporting information, to the Financial Institutions because it would insurance regulators, and FINRA, in Department and other regulators within allow them to streamline compliance developing the proposed exemption, 10 business days of such request. rather than rely on multiple exemptions with the goal of avoiding overlapping or with multiple sets of conditions. duplicative requirements. To the extent Unfunded Mandates Reform Act This proposed exemption simply the requirements overlap, compliance Title II of the Unfunded Mandates provides an additional alternative with the other disclosure or Reform Act of 1995 181 requires each pathway for Financial Institutions and recordkeeping requirements can be used federal agency to prepare a written Investment Professionals to receive to satisfy the exemption, provided the statement assessing the effects of any compensation and engage in certain conditions are satisfied. This would federal mandate in a proposed or final transactions that would otherwise be lead to overall regulatory efficiency. rule that may result in an expenditure prohibited under ERISA and the Code. of $100 million or more (adjusted Significant Alternatives Considered Financial Institutions would incur costs annually for inflation with the base year to comply with conditions set forth in The RFA directs the Department to 1995) in any 1 year by state, local, and the proposed exemption. However, the consider significant alternatives that tribal governments, in the aggregate, or Department believes the costs associated would accomplish the stated objective, by the private sector. For purposes of with those conditions would be modest while minimizing any significant the Unfunded Mandates Reform Act, as because the proposed exemption was adverse impact on small entities. well as Executive Order 12875, this developed in consideration of other proposed exemption does not include External Audit regulatory conduct standards. The any Federal mandate that will result in Department believes that many Under section II(d) of the proposed such expenditures. Financial Institutions and Investment exemption, Financial Institutions would Professionals have already developed, be required to conduct an annual Federalism Statement or are in the process of developing, retrospective review that is reasonably Executive Order 13132 outlines compliance structures for similar designed to detect and prevent fundamental principles of federalism. It regulatory standards. Therefore, the violations of, and achieve compliance also requires federal agencies to adhere Department does not believe the with, the Impartial Conduct Standards to specific criteria in formulating and proposed exemption will impose a and the institution’s own policies and implementing policies that have significant compliance burden on small procedures. The Department considered ‘‘substantial direct effects’’ on the states,

American Securities Administrators Association 178 Of the small, state-registered IAs, the 179 NAIC estimates that the number of insurers (May 2018), www.nasaa.org/wp-content/uploads/ Department estimates that 16 percent provide directly writing annuities as of 2018 is 386. 2018/05/2018-NASAA-IA-Report-Online.pdf.) advice or services to retirement plans (see 2019 180 LIMRA estimates in 2016, 70 insurers had Therefore, the Department estimates there were Investment Adviser Section Annual Report, North more than $38.5 million in sales. (See U.S. about 10,840 small, state-registered IAs. American Securities Administrators Association, Individual Annuity Yearbook: 2016 Data, LIMRA (May 2019)). Secure Retirement Institute (2017)). 181 Public Law 104–4, 109 Stat. 48 (1995).

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the relationship between the national transitional rules. Furthermore, the fact Financial Institution or any affiliate is government and states, or on the that a transaction is subject to an (A) the employer of employees covered distribution of power and administrative or statutory exemption is by the Plan, or (B) a named fiduciary or responsibilities among the various not dispositive of whether the plan administrator with respect to the levels of government. Federal agencies transaction is in fact a prohibited Plan that was selected to provide advice promulgating regulations that have transaction. to the Plan by a fiduciary who is not these federalism implications must independent of the Financial consult with state and local officials, Improving Investment Advice for Institution, Investment Professional, and and describe the extent of their Workers & Retirees their affiliates; or consultation and the nature of the Section I—Transactions (2) The transaction is a result of concerns of state and local officials in investment advice generated solely by (a) In general. ERISA and the Internal the preamble to the final regulation. The an interactive website in which Revenue Code prohibit fiduciaries, as Department does not believe this computer software-based models or defined, that provide investment advice proposed class exemption has applications provide investment advice to Plans and individual retirement federalism implications because it has based on personal information each accounts (IRAs) from receiving no substantial direct effect on the states, investor supplies through the website, compensation that varies based on their on the relationship between the national without any personal interaction or investment advice and compensation government and the states, or on the advice with an Investment Professional that is paid from third parties. ERISA distribution of power and (i.e., robo-advice); and the Code also prohibit fiduciaries responsibilities among the various (3) The transaction involves the levels of government. from engaging in purchases and sales Investment Professional acting in a with Plans or IRAs on behalf of their fiduciary capacity other than as an General Information own accounts (principal transactions). investment advice fiduciary within the The attention of interested persons is This exemption permits Financial meaning of the regulations at 29 CFR directed to the following: Institutions and Investment 2510.3–21(c)(1)(i) and (ii)(B) or 26 CFR (1) The fact that a transaction is the Professionals who provide fiduciary 54.4975–9(c)(1)(i) and (ii)(B) setting subject of an exemption under ERISA investment advice to Retirement forth the test for fiduciary investment section 408(a) and Code section Investors to receive otherwise advice. 4975(c)(2) does not relieve a fiduciary, prohibited compensation and engage in or other party in interest or disqualified riskless principal transactions and Section II—Investment Advice person with respect to a Plan, from certain other principal transactions Arrangement certain other provisions of ERISA and (Covered Principal Transactions) as Section II requires Investment the Code, including any prohibited described below. The exemption Professionals and Financial Institutions transaction provisions to which the provides relief from the prohibitions of to comply with Impartial Conduct exemption does not apply and the ERISA section 406(a)(1)(A), (D), and Standards, including a best interest general fiduciary responsibility 406(b), and the sanctions imposed by standard, when providing fiduciary provisions of ERISA section 404 which Code section 4975(a) and (b), by reason investment advice to Retirement require, among other things, that a of Code section 4975(c)(1)(A), (D), (E), Investors. In addition, the exemption fiduciary act prudently and discharge and (F), if the Financial Institutions and requires Financial Institutions to his or her duties respecting the Plan Investment Professionals provide acknowledge fiduciary status under solely in the interests of the participants fiduciary investment advice in ERISA and/or the Code, and describe in and beneficiaries of the Plan. accordance with the conditions set forth writing the services they will provide Additionally, the fact that a transaction in Section II and are eligible pursuant to and their material Conflicts of Interest. is the subject of an exemption does not Section III, subject to the definitional Finally, Financial Institutions must affect the requirement of Code section terms and recordkeeping requirements adopt policies and procedures 401(a) that the Plan must operate for the in Sections IV and V. prudently designed to ensure exclusive benefit of the employees of (b) Covered transactions. This compliance with the Impartial Conduct the employer maintaining the Plan and exemption permits Financial Standards when providing fiduciary their beneficiaries; Institutions and Investment investment advice to Retirement (2) Before the proposed exemption Professionals, and their affiliates and Investors and conduct a retrospective may be granted under ERISA section related entities, to engage in the review of compliance. 408(a) and Code section 4975(c)(2), the following transactions, including as part (a) Impartial Conduct Standards. The Department must find that it is of a rollover from a Plan to an IRA as Financial Institution and Investment administratively feasible, in the defined in Code section 4975(e)(1)(B) or Professional comply with the following interests of Plans and their participants (C), as a result of the provision of ‘‘Impartial Conduct Standards’’: and beneficiaries and IRA owners, and investment advice within the meaning (1) Investment advice is, at the time protective of the rights of participants of ERISA section 3(21)(A)(ii) and Code it is provided, in the Best Interest of the and beneficiaries of the Plan and IRA section 4975(e)(3)(B): Retirement Investor. As defined in owners; (1) The receipt of reasonable Section V(a), such advice reflects the (3) If granted, the proposed exemption compensation; and care, skill, prudence, and diligence is applicable to a particular transaction (2) The purchase or sale of an asset in under the circumstances then prevailing only if the transaction satisfies the a riskless principal transaction or a that a prudent person acting in a like conditions specified in the exemption; Covered Principal Transaction, and the capacity and familiar with such matters and receipt of a mark-up, mark-down, or would use in the conduct of an (4) The proposed exemption, if other payment. enterprise of a like character and with granted, is supplemental to, and not in (c) Exclusions. This exemption does like aims, based on the investment derogation of, any other provisions of not apply if: objectives, risk tolerance, financial ERISA and the Code, including statutory (1) The Plan is covered by Title I of circumstances, and needs of the or administrative exemptions and ERISA and the Investment Professional, Retirement Investor, and does not place

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the financial or other interests of the connection with covered fiduciary (1) A conviction of any crime Investment Professional, Financial advice and transactions. described in ERISA section 411 arising Institution or any affiliate, related (3) The Financial Institution out of such person’s provision of entity, or other party ahead of the documents the specific reasons that any investment advice to Retirement interests of the Retirement Investor, or recommendation to roll over assets from Investors, unless, in the case of a subordinate the Retirement Investor’s a Plan to another Plan or IRA as defined Financial Institution, the Department interests to their own; in Code section 4975(e)(1)(B) or (C), grants a petition pursuant to subsection (2)(A) The compensation received, from an IRA as defined in Code section (c)(1) below that the Financial directly or indirectly, by the Financial 4975(e)(1)(B) or (C) to a Plan, from an Institution’s continued reliance on the Institution, Investment Professional, IRA to another IRA, or from one type of exemption would not be contrary to the their affiliates and related entities for account to another (e.g., from a purposes of the exemption; or their services does not exceed commission-based account to a fee- (2) Receipt of a written ineligibility reasonable compensation within the based account) is in the Best Interest of notice issued by the Office of Exemption meaning of ERISA section 408(b)(2) and the Retirement Investor. Determinations for (A) engaging in a Code section 4975(d)(2); and (B) as (d) Retrospective Review. systematic pattern or practice of required by the federal securities laws, (1) The Financial Institution conducts violating the conditions of this the Financial Institution and Investment a retrospective review, at least annually, exemption in connection with otherwise Professional seek to obtain the best that is reasonably designed to assist the non-exempt prohibited transactions; (B) execution of the investment transaction Financial Institution in detecting and intentionally violating the conditions of reasonably available under the preventing violations of, and achieving this exemption in connection with circumstances; and compliance with, the Impartial Conduct otherwise non-exempt prohibited (3) The Financial Institutions’ and its Standards and the policies and transactions; or (C) providing materially Investment Professionals’ statements to procedures governing compliance with misleading information to the the Retirement Investor about the the exemption. Department in connection with the recommended transaction and other (2) The methodology and results of Financial Institution’s conduct under relevant matters are not, at the time the retrospective review are reduced to the exemption; in each case, as statements are made, materially a written report that is provided to the determined by the Director of the Office misleading. Financial Institution’s chief executive of Exemption Determinations pursuant to the process described in subsection (b) Disclosure. Prior to engaging in a officer (or equivalent officer) and chief (c). transaction pursuant to this exemption, compliance officer (or equivalent (b) Timing and Scope of Ineligibility. the Financial Institution provides the officer). (3) The Financial Institution’s chief (1) An Investment Professional shall following disclosure to the Retirement become ineligible immediately upon (A) Investor: executive officer (or equivalent officer) certifies, annually, that: the date of the trial court’s conviction of (1) A written acknowledgment that (A) The officer has reviewed the the Investment Professional of a crime the Financial Institution and its report of the retrospective review; described in subsection (a)(1), regardless Investment Professionals are fiduciaries (B) The Financial Institution has in of whether that judgment remains under under ERISA and the Code, as place policies and procedures prudently appeal, or (B) the date of the Office of applicable, with respect to any fiduciary designed to achieve compliance with Exemption Determinations’ written investment advice provided by the the conditions of this exemption; and ineligibility notice described in Financial Institution or Investment (C) The Financial Institution has in subsection (a)(2), issued to the Professional to the Retirement Investor; place a prudent process to modify such Investment Professional. and policies and procedures as business, (2) A Financial Institution shall (2) A written description of the regulatory and legislative changes and become ineligible following (A) the 10th services to be provided and the events dictate, and to test the business day after the conviction of the Financial Institution’s and Investment effectiveness of such policies and Financial Institution or another Professional’s material Conflicts of procedures on a periodic basis, the Financial Institution in the same Interest that is accurate and not timing and extent of which is Control Group of a crime described in misleading in all material respects. reasonably designed to ensure subsection (a)(1) regardless of whether (c) Policies and Procedures. continuing compliance with the that judgment remains under appeal, or, (1) The Financial Institution conditions of this exemption. if the Financial Institution timely establishes, maintains and enforces (4) The review, report and submits a petition described in written policies and procedures certification are completed no later than subsection (c)(1) during that period, prudently designed to ensure that the six months following the end of the upon the date of the Office of Financial Institution and its Investment period covered by the review. Exemption Determination’s written Professionals comply with the Impartial (5) The Financial Institution retains denial of the petition, or (B) the Office Conduct Standards in connection with the report, certification, and supporting of Exemption Determinations’ written covered fiduciary advice and data for a period of six years and makes ineligibility notice, described in transactions. the report, certification, and supporting subsection (a)(2), issued to the Financial (2) Financial Institutions’ policies and data available to the Department, within Institution or another Financial procedures mitigate Conflicts of Interest 10 business days of request. Institution in the same Control Group. to the extent that the policies and (3) Control Group. A Financial procedures, and the Financial Section III—Eligibility Institution is in a Control Group with Institution’s incentive practices, when (a) General. Subject to the timing and another Financial Institution if, directly viewed as a whole, are prudently scope provisions set forth in subsection or indirectly, the Financial Institution designed to avoid misalignment of the (b), an Investment Professional or owns at least 80 percent of, is at least interests of the Financial Institution and Financial Institution will be ineligible to 80 percent owned by, or shares an 80 Investment Professionals and the rely on the exemption for 10 years percent or more owner with, the other interests of Retirement Investors in following: Financial Institution. For purposes of

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this provision, if the Financial exemption. The Department will engaged in an investment transaction Institutions are not corporations, provide a written determination to the pursuant to this exemption; or ownership is defined to include Financial Institution that articulates the (4) Any participant or beneficiary of a interests in the Financial Institution basis for the determination. Plan, or IRA owner that engaged in an such as profits interest or capital (2) Written ineligibility notice under investment transaction pursuant to this interests. subsection (a)(2). Prior to issuing a exemption. (4) Winding Down Period. Any written ineligibility notice, the Director (b)(1) None of the persons described Financial Institution that is ineligible of the Office of Exemption in subsection (a)(2)–(4) above are will have a one-year winding down Determinations will issue a written authorized to examine records regarding period during which relief is available warning to the Investment Professional a recommended transaction involving under the exemption subject to the or Financial Institution, as applicable, another Retirement Investor, privileged conditions of the exemption other than identifying specific conduct implicating trade secrets or privileged commercial eligibility. After the one-year period subsection (a)(2), and providing a six- or financial information of the Financial expires, the Financial Institution may month opportunity to cure. At the end Institution, or information identifying not rely on the relief provided in this of the six-month period, if the other individuals. exemption for any additional Department determines that the conduct (2) Should the Financial Institution transactions. persists, it will provide the Investment refuse to disclose information to (c) Opportunity to be heard. Professional or Financial Institution Retirement Investors on the basis that (1) Petitions under subsection (a)(1). with the opportunity to be heard, in the information is exempt from (A) A Financial Institution that has person or in writing or both, before the disclosure, the Financial Institution been convicted of a crime may submit Director of the Office of Exemption must, by the close of the thirtieth (30th) a petition to the Department informing Determinations issues the written day following the request, provide a the Department of the conviction and ineligibility notice. The opportunity to written notice advising the requestor of seeking a determination that the the reasons for the refusal and that the Financial Institution’s continued be heard in person will be limited to one in-person conference unless the Department may request such reliance on the exemption would not be information. contrary to the purposes of the Department determines in its sole exemption. Petitions must be submitted, discretion to allow additional Section V—Definitions conferences. The written ineligibility within 10 business days after the date of (a) Advice is in a Retirement notice will articulate the basis for the the conviction, to the Director of the Investor’s ‘‘Best Interest’’ if such advice determination that the Investment Office of Exemption Determinations by reflects the care, skill, prudence, and Professional or Financial Institution email at [email protected], or by certified diligence under the circumstances then engaged in conduct described in mail at Office of Exemption prevailing that a prudent person acting subsection (a)(2). Determinations, Employee Benefits in a like capacity and familiar with such Security Administration, U.S. (d) A Financial Institution or matters would use in the conduct of an Department of Labor, 200 Constitution Investment Professional that is enterprise of a like character and with Avenue NW, Suite 400, Washington, DC ineligible to rely on this exemption may like aims, based on the investment 20210. rely on a statutory prohibited objectives, risk tolerance, financial (B) Following receipt of the petition, transaction exemption if one is available circumstances, and needs of the the Department will provide the or seek an individual prohibited Retirement Investor, and does not place Financial Institution with the transaction exemption from the the financial or other interests of the opportunity to be heard, in person or in Department. To the extent an applicant Investment Professional, Financial writing or both. The opportunity to be seeks retroactive relief in connection Institution or any affiliate, related heard in person will be limited to one with an exemption application, the entity, or other party ahead of the in-person conference unless the Department will consider the interests of the Retirement Investor, or Department determines in its sole application in accordance with its subordinate the Retirement Investor’s discretion to allow additional retroactive exemption policy as set forth interests to their own. conferences. in 29 CFR 2570.35(d). The Department (b) A ‘‘Conflict of Interest’’ is an (C) The Department’s determination may require additional prospective interest that might incline a Financial as to whether to grant the petition will compliance conditions as a condition of Institution or Investment Professional— be based solely on its discretion. In retroactive relief. consciously or unconsciously—to make determining whether to grant the Section IV—Recordkeeping a recommendation that is not in the Best petition, the Department will consider Interest of the Retirement Investor. the gravity of the offense; the (a) The Financial Institution (c) A ‘‘Covered Principal Transaction’’ relationship between the conduct maintains for a period of six years is a principal transaction that: underlying the conviction and the records demonstrating compliance with (1) For sales to a Plan or IRA: Financial Institution’s system and this exemption and makes such records (A) Involves a U.S. dollar practices in its retirement investment available, to the extent permitted by law denominated debt security issued by a business as a whole; the degree to which including 12 U.S.C. 484, to the U.S. corporation and offered pursuant to the underlying conduct concerned following persons or their authorized a registration statement under the individual misconduct, or, alternately, representatives: Securities Act of 1933; a U.S. Treasury corporate managers or policy; how (1) Any authorized employee of the Security; a debt security issued or recent was the underlying lawsuit; Department; guaranteed by a U.S. federal government remedial measures taken by the (2) Any fiduciary of a Plan that agency other than the U.S. Department Financial Institution upon learning of engaged in an investment transaction of Treasury; a debt security issued or the underlying conduct; and such other pursuant to this exemption; guaranteed by a government-sponsored factors as the Department determines in (3) Any contributing employer and enterprise; a municipal security; a its discretion are reasonable in light of any employee organization whose certificate of deposit; an interest in a the nature and purposes of the members are covered by a Plan that Unit Investment Trust; or any

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investment permitted to be sold by an (as defined in section 3(b)(1) of the (1) Is a fiduciary of a Plan or IRA by investment advice fiduciary to a Federal Deposit Insurance Act (12 reason of the provision of investment Retirement Investor under an individual U.S.C. 1813(b)(1)); advice described in ERISA section exemption granted by the Department (3) An insurance company qualified 3(21)(A)(ii) or Code section after the effective date of this exemption to do business under the laws of a state, 4975(e)(3)(B), or both, and the that includes the same conditions as that: (A) Has obtained a Certificate of applicable regulations, with respect to this exemption, and Authority from the insurance the assets of the Plan or IRA involved (B) If the recommended investment is commissioner of its domiciliary state in the recommended transaction; a debt security, the security is which has neither been revoked nor (2) Is an employee, independent recommended pursuant to written suspended; (B) has undergone and shall contractor, agent, or representative of a policies and procedures adopted by the continue to undergo an examination by Financial Institution; and Financial Institution that are reasonably an independent certified public (3) Satisfies the federal and state designed to ensure that the security, at accountant for its last completed taxable regulatory and licensing requirements of the time of the recommendation, has no year or has undergone a financial insurance, banking, and securities laws greater than moderate credit risk and examination (within the meaning of the (including self-regulatory organizations) sufficient liquidity that it could be sold law of its domiciliary state) by the with respect to the covered transaction, at or near carrying value within a state’s insurance commissioner within as applicable, and is not disqualified or reasonably short period of time; and the preceding 5 years, and (C) is barred from making investment (2) For purchases from a Plan or IRA, domiciled in a state whose law requires recommendations by any insurance, involves any securities or investment that an actuarial review of reserves be banking, or securities law or regulatory property. conducted annually and reported to the authority (including any self-regulatory (d) ‘‘Financial Institution’’ means an appropriate regulatory authority; organization). entity that is not disqualified or barred (4) A broker or dealer registered under (g) ‘‘Plan’’ means any employee from making investment the Securities Exchange Act of 1934 (15 benefit plan described in ERISA section recommendations by any insurance, U.S.C. 78a et seq.); or 3(3) and any plan described in Code banking, or securities law or regulatory section 4975(e)(1)(A). authority (including any self-regulatory (5) An entity that is described in the definition of Financial Institution in an (h) ‘‘Retirement Investor’’ means— organization), that employs the (1) A participant or beneficiary of a Investment Professional or otherwise individual exemption granted by the Department after the date of this Plan with authority to direct the retains such individual as an investment of assets in his or her independent contractor, agent or exemption that provides relief for the receipt of compensation in connection account or to take a distribution; registered representative, and that is: (2) The beneficial owner of an IRA (1) Registered as an investment with investment advice provided by an investment advice fiduciary under the acting on behalf of the IRA; or adviser under the Investment Advisers (3) A fiduciary of a Plan or IRA. Act of 1940 (15 U.S.C. 80b–1 et seq.) or same conditions as this class exemption. under the laws of the state in which the (e) ‘‘Individual Retirement Account’’ Jeanne Klinefelter Wilson, adviser maintains its principal office or ‘‘IRA’’ means any account or annuity Acting Assistant Secretary, Employee Benefits and place of business; described in Code section 4975(e)(1)(B) Security Administration, U.S. Department of (2) A bank or similar financial through (F). Labor. institution supervised by the United (f) ‘‘Investment Professional’’ means [FR Doc. 2020–14261 Filed 7–2–20; 8:45 am] States or a state, or a savings association an individual who: BILLING CODE 4510–29–P

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Reader Aids Federal Register Vol. 85, No. 130 Tuesday, July 7, 2020

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING JULY

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 17 CFR Presidential Documents 3 CFR 232...... 39476 Executive orders and proclamations 741–6000 Proclamations: 239...... 39476 The United States Government Manual 741–6000 10053...... 39821 10054...... 40085 Other Services 18 CFR 10055...... 40087 153...... 40113 Electronic and on-line services (voice) 741–6020 Executive Orders: 157...... 40113 Privacy Act Compilation 741–6050 13931...... 39455 13932...... 39457 Proposed Rules: 342...... 39854 ELECTRONIC RESEARCH 13933...... 40081 19 CFR World Wide Web 5 CFR 1605...... 40569 181...... 39690 Full text of the daily Federal Register, CFR and other publications 1650...... 40569 182...... 39690 is located at: www.govinfo.gov. 1651...... 40569 21 CFR Federal Register information and research tools, including Public Proposed Rules: Inspection List and electronic text are located at: 841...... 39851 801...... 39477 www.federalregister.gov. 843...... 39852 26 CFR E-mail 7 CFR Proposed Rules: FEDREGTOC (Daily Federal Register Table of Contents Electronic 201...... 40571 1...... 40610 202...... 40571 Mailing List) is an open e-mail service that provides subscribers 29 CFR with a digital form of the Federal Register Table of Contents. The 1260...... 39461 digital form of the Federal Register Table of Contents includes 810...... 39782 HTML and PDF links to the full text of each document. 10 CFR 2509...... 40589 Proposed Rules: 2510...... 40589 To join or leave, go to https://public.govdelivery.com/accounts/ 2560...... 39831 USGPOOFR/subscriber/new, enter your email address, then 1061...... 39495 Proposed Rules: follow the instructions to join, leave, or manage your 12 CFR 2550...... 40834 subscription. 45...... 39464, 39754 32 CFR PENS (Public Law Electronic Notification Service) is an e-mail 237...... 39464, 39754 service that notifies subscribers of recently enacted laws. 349...... 39464, 39754 319...... 40016 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 624...... 39464, 39754 320...... 40017 and select Join or leave the list (or change settings); then follow 1221...... 39464, 39754 322...... 40017 the instructions. Proposed Rules: 326...... 40018 FEDREGTOC and PENS are mailing lists only. We cannot 7...... 40794, 40827 Proposed Rules: respond to specific inquiries. 22...... 40442 286...... 39856 145...... 40794 Reference questions. Send questions and comments about the 155...... 40827 33 CFR Federal Register system to: [email protected] 160...... 40794 165...... 39852 The Federal Register staff cannot interpret specific documents or 208...... 40442 Proposed Rules: regulations. 339...... 40442 100...... 40612, 40614 614...... 40442 110...... 40153 FEDERAL REGISTER PAGES AND DATE, JULY 760...... 40442 167...... 40155 39455–39828...... 1 14 CFR 34 CFR 39829–40086...... 2 39 ...... 39470, 39829, 40584, Ch. III ...... 39833 40087–40568...... 6 40586 76...... 39479 40569–40866...... 7 71 ...... 39472, 39473, 39475, 40089, 40588 40 CFR 95...... 40092 52...... 39489 Proposed Rules: 63 ...... 39980, 40386, 40594, 39...... 39503 40740 71 ...... 40138, 40140, 40142 180 ...... 39491, 40018, 40022, 40026, 40028 15 CFR 260...... 40594 Proposed Rules: 261...... 40594 922...... 40143 278...... 40594 Proposed Rules: 16 CFR 52 ...... 39505, 40026, 40156, 1112...... 40100 40158, 40160, 40165, 40618 1239...... 40100 81...... 39505, 40026

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86...... 39858 301–52...... 39847 47 CFR 18...... 40076 281...... 39517 301–70...... 39847 Proposed Rules: 22...... 40064 600...... 39858 301–72...... 39847 1...... 39859, 40168 25...... 40064 27...... 40076 41 CFR 301–73...... 39847 2...... 40168 301–74...... 39847 101...... 40168 30...... 40076 Appendix A to Ch. 52 ...... 40061, 40064, 40071, 301–75...... 39847 301 ...... 39847 48 CFR 40075, 40076 302–1...... 39847 Appendix B to Ch. Ch. I...... 40060, 40077 53...... 40061 302–4...... 39847 301 ...... 39847 1...... 40061 Appendix E to Ch. 302–5...... 39847 2 ...... 40061, 40064, 40068 49 CFR 301 ...... 39847 302–7...... 39847 3...... 40064 192...... 40132 300–3...... 39847 302–8...... 39847 4 ...... 40061, 40068, 40076 300–70...... 39847 304–2...... 39847 5...... 40076 50 CFR 300–80...... 39847 304–6...... 39847 9...... 40064, 40076 300–90...... 39847 60–1...... 39834 13...... 40064, 40068 660...... 40135 301–10...... 39847 60–300...... 39834 14...... 40071 679...... 40609 301–11...... 39847 60–741...... 39834 15...... 40068, 40071 Proposed Rules: 301–13...... 39847 16...... 40064, 40068 622...... 40181

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