FEDERAL REGISTER
Vol. 86 Wednesday No. 104 June 2, 2021
Pages 29483–29674
OFFICE OF THE FEDERAL REGISTER
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Contents Federal Register Vol. 86, No. 104
Wednesday, June 2, 2021
Agriculture Department Strengthening Transparency in Pivotal Science Underlying See Animal and Plant Health Inspection Service Significant Regulatory Actions and Influential See Forest Service Scientific Information; Implementation of Vacatur, See National Agricultural Statistics Service 29515–29517 See Office of Partnerships and Public Engagement PROPOSED RULES See Risk Management Agency Intention To Reconsider and Revise the Clean Water Act See Rural Housing Service Section 401 Certification Rule, 29541–29544 NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals, 29546–29547 Submissions, and Approvals: Certification and Compliance Requirements for Nonroad Animal and Plant Health Inspection Service Spark-Ignition Engines, 29578–29580 NOTICES Agency Information Collection Activities; Proposals, Executive Office for Immigration Review Submissions, and Approvals: NOTICES Movement of Plants and Plant Products From Hawaii and Agency Information Collection Activities; Proposals, the Territories, 29547 Submissions, and Approvals: Decision To Add Taxa of Plants for Planting That Are Appeal to the Board of Immigration Appeals From a Quarantine Pests or Hosts of Quarantine Pests to the Decision of a DHS Officer, 29595–29596 Lists of Plants for Planting Whose Importation Is Not Authorized Pending Pest Risk Analysis, 29548–29550 Export-Import Bank NOTICES Centers for Medicare & Medicaid Services Meetings; Sunshine Act, 29580 RULES Farm Credit Administration Medicare and Medicaid Programs: Contract Year 2022 Policy and Technical Changes to the NOTICES Meetings; Sunshine Act, 29580–29581 Medicare Advantage Program, Medicare Prescription Drug Benefit Program, etc.; Corrections, 29526–29528 Federal Aviation Administration NOTICES Agency Information Collection Activities; Proposals, RULES Submissions, and Approvals, 29584–29585 Airspace Designations and Reporting Points: Eastern New York and Northern Vermont, 29489–29491 Vicinity of Cecil, FL, 29488–29489 Commerce Department Airworthiness Directives: See Foreign-Trade Zones Board Airbus Helicopters Deutschland GmbH, 29483–29486 See International Trade Administration Mooney International Corporation Airplanes, 29486– See National Oceanic and Atmospheric Administration 29488 See National Telecommunications and Information PROPOSED RULES Administration Airspace Designations and Reporting Points: See Patent and Trademark Office Bellingham, WA, 29530–29531 Central Alaska, 29531–29533 Drug Enforcement Administration RULES Federal Energy Regulatory Commission Schedules of Controlled Substances: RULES Placement of Remimazolam in Schedule IV, 29506–29509 Interstate and Intrastate Natural Gas Pipelines: Rate Changes Relating to Federal Income Tax Rate Energy Department American Forest and Paper Assn., 29503–29506 See Federal Energy Regulatory Commission Standards for Business Practices and Communication Protocols for Public Utilities, 29491–29503 Environmental Protection Agency NOTICES RULES Agency Information Collection Activities; Proposals, Air Quality State Implementation Plans; Approvals and Submissions, and Approvals, 29574–29577 Promulgations: Application: Maine; Removal of Reliance on Reformulated Gasoline in Port Townsend Paper Corp., 29573–29574 the Southern Counties of Maine, 29520–29522 Combined Filings, 29572–29573, 29577–29578 Missouri; Construction Permits By Rule, 29517–29520 Complaint: Designation of Areas for Air Quality Planning Purposes: Occidental Permian, Ltd., OXY USA WTP, LP v. El Paso California; San Diego County Ozone Nonattainment Area; Natural Gas Co., LLC, 29572 Reclassification to Severe, 29522–29526 Tenaska Clear Creek Wind, LLC v. Southwest Power Expedited Approval of Alternative Test Procedures for the Pool, Inc., 29578 Analysis of Contaminants Under the Safe Drinking Request for Comments: Water Act; Analysis and Sampling Procedures, 29526 Hybrid Resources, 29573
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Federal Highway Administration Internal Revenue Service NOTICES NOTICES Final Federal Agency Actions: Agency Information Collection Activities; Proposals, Proposed Highway in California, 29624–29625 Submissions, and Approvals, 29627–29628 Agency Information Collection Activities; Proposals, Federal Reserve System Submissions, and Approvals: NOTICES Regulation Project, 29626–29627 Change in Bank Control: Acquisitions of Shares of a Bank or Bank Holding International Trade Administration Company, 29581 NOTICES Antidumping or Countervailing Duty Investigations, Orders, Federal Trade Commission or Reviews: PROPOSED RULES Certain Hardwood Plywood Products From the People’s Energy Labeling Rule, 29533–29541 Republic of China, 29562–29565 NOTICES Meetings: Agency Information Collection Activities; Proposals, Advisory Committee on Supply Chain Competitiveness, Submissions, and Approvals, 29581–29583 29560–29561 Requests for Nominations: Food and Drug Administration District Export Council Member, 29561–29562 NOTICES Determination: International Trade Commission SANDOSTATIN (Octreotide Acetate) Injection, Equal to NOTICES 0.2 Milligrams Base/Milliliter and Equal to 1 Investigations; Determinations, Modifications, and Rulings, Milligrams Base/Milliliter, Was Not Withdrawn From etc.: Sale for Reasons of Safety or Effectiveness, 29585– Certain Cellular Signal Boosters, Repeaters, Bi-Directional 29586 Amplifiers, and Components Thereof (I), 29593– 29594 Foreign-Trade Zones Board Certain Cellular Signal Boosters, Repeaters, Bi-Directional NOTICES Amplifiers, and Components Thereof (III), 29595 Application for Reorganization Under Alternative Site Melamine From China; Scheduling of Expedited Five- Framework: Year Reviews, 29594–29595 Foreign-Trade Zone 249, Pensacola, FL, 29560 Justice Department Forest Service See Drug Enforcement Administration NOTICES See Executive Office for Immigration Review Newspapers Used for Publication of Legal Notices in the NOTICES Proposed Consent Decree Under the Clean Air Act, 29596– Southwestern Region: 29597 Arizona, New Mexico, and Parts of Oklahoma and Texas, 29550–29551 Legal Services Corporation NOTICES Government Ethics Office Meetings; Sunshine Act, 29597 NOTICES Agency Information Collection Activities; Proposals, National Aeronautics and Space Administration Submissions, and Approvals: NOTICES Executive Branch Confidential Financial Disclosure Agency Information Collection Activities; Proposals, Report, 29584 Submissions, and Approvals: Executive Branch Personnel Public Financial Disclosure NASA Serves the Public To Inspire Reach-Out and Report, 29583–29584 Engage, 29597–29598 Health and Human Services Department National Agricultural Statistics Service See Centers for Medicare & Medicaid Services NOTICES See Food and Drug Administration Agency Information Collection Activities; Proposals, See Health Resources and Services Administration Submissions, and Approvals, 29551–29552 See National Institutes of Health National Institutes of Health Health Resources and Services Administration NOTICES NOTICES Meetings: Agency Information Collection Activities; Proposals, Center for Scientific Review, 29589–29591 Submissions, and Approvals: National Human Genome Research Institute, 29589– Rural Health Care Coordination Program Performance 29590 Improvement and Measurement System Database, National Institute of Allergy and Infectious Diseases, 29586–29588 29591–29592 Meetings: National Institute of Diabetes and Digestive and Kidney Advisory Committee on Infant Mortality, 29588 Diseases, 29590–29592 National Institute of General Medical Sciences, 29589– Interior Department 29590 See National Park Service National Institute of Neurological Disorders and Stroke, See Surface Mining Reclamation and Enforcement Office 29588–29589
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National Oceanic and Atmospheric Administration Risk Management Agency PROPOSED RULES NOTICES Fisheries off West Coast States: Funding Availability: West Coast Salmon Fisheries; Amendment 21 to the Pandemic Cover Crop Program, 29553–29555 Pacific Coast Salmon Fishery Management Plan, 29544–29545 Rural Housing Service NOTICES NOTICES Meetings: Request for Applications: Gulf of Mexico Fishery Management Council, 29565– Section 533 Housing Preservation Grants for Fiscal Year 29566 2021, 29555–29560 Mid-Atlantic Fishery Management Council, 29565 Pacific Fishery Management Council, 29567–29568 Securities and Exchange Commission NOTICES National Park Service Self-Regulatory Organizations; Proposed Rule Changes: NOTICES BOX Exchange, LLC, 29634–29674 Meetings: Cboe BZX Exchange, Inc., 29611–29612 Native American Graves Protection and Repatriation ICE Clear Europe, Ltd., 29612–29623 Review Committee, 29592–29593 Investors Exchange, LLC, 29608 National Register of Historic Places: MIAX Emerald, LLC, 29608–29611 Pending Nominations and Related Actions, 29593 New York Stock Exchange, LLC, 29601–29607
National Science Foundation Small Business Administration NOTICES NOTICES Meetings: Exemption: Proposal Review Panel for Materials Research, 29598 QS Capital Strategies II, LP; Conflicts of Interest, 29623
National Telecommunications and Information Surface Mining Reclamation and Enforcement Office Administration RULES NOTICES Civil Monetary Penalty Inflation Adjustments, 29509–29515 Software Bill of Materials Elements and Considerations, 29568–29571 Surface Transportation Board Nuclear Regulatory Commission NOTICES Control and Merger; Trackage Rights Exemptions; Operation NOTICES Exemption; and Discontinuance Exemption: Consideration of Approval of Transfer of Licenses and CSX Corporation and CSX Transportation, Inc., Pan Am Conforming Amendments: Systems, Inc., Pan Am Railways, Inc., Boston and Braidwood Station, Units 1 and 2; Byron Station, Unit Maine Corp., et al., 29623–29624 Nos. 1 and 2; Calvert Cliffs Nuclear Power Plant, Lease and Operation Exemption: Units 1 and 2; et al., 29599–29600 Gulf and Ship Island Railroad, LLC; Rail Line of Harrison Office of Partnerships and Public Engagement County Development Commission at or Near NOTICES Gulfport, Harrison County, MS, 29623 Meetings: Advisory Committee on Minority Farmers, 29552–29553 Transportation Department See Federal Aviation Administration Patent and Trademark Office See Federal Highway Administration NOTICES See Pipeline and Hazardous Materials Safety Submitting Patent Applications in Structured Text Format Administration and Reliance on the Text Version as the Source or Evidentiary Copy, 29571–29572 Treasury Department See Internal Revenue Service Pipeline and Hazardous Materials Safety Administration RULES RULES Uniform Administrative Requirements, Cost Principles, and Civil Penalty Amounts: Audit Requirements for Federal Awards; Technical Correction, 29528–29529 Amendment, 29483 NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals: Submissions, and Approvals: Hazardous Materials, 29625–29626 Treasury International Capital, 29628–29629 Postal Regulatory Commission Unified Carrier Registration Plan NOTICES NOTICES Service Standard Changes, 29600–29601 Meetings; Sunshine Act, 29629–29630 Railroad Retirement Board Veterans Affairs Department NOTICES NOTICES Meetings: Meetings: Railroad Retirement Account Actuarial Advisory Veterans and Community Oversight and Engagement Committee, 29601 Board, 29630–29631
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Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice Separate Parts In This Issue of recently enacted public laws. To subscribe to the Federal Register Table of Contents Part II electronic mailing list, go to https://public.govdelivery.com/ Securities and Exchange Commission, 29634–29674 accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or 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.
2 CFR 1000...... 29483 14 CFR 39 (2 documents) ...... 29483, 29486 71 (2 documents) ...... 29488, 29489 Proposed Rules: 71 (2 documents) ...... 29530, 29531 16 CFR Proposed Rules: 305...... 29533 18 CFR 37...... 29491 38...... 29491 154...... 29503 260...... 29503 284...... 29503 21 CFR 1308...... 29506 30 CFR 723...... 29509 724...... 29509 845...... 29509 846...... 29509 40 CFR 30...... 29515 52 (2 documents) ...... 29517, 29520 81...... 29522 141...... 29526 Proposed Rules: 121...... 29541 42 CFR 405...... 29526 417...... 29526 422...... 29526 423...... 29526 455...... 29526 460...... 29526 49 CFR 107...... 29528 50 CFR Proposed Rules: 660...... 29544
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Rules and Regulations Federal Register Vol. 86, No. 104
Wednesday, June 2, 2021
This section of the FEDERAL REGISTER programs, Reporting and recordkeeping service, cleaning and inspecting certain contains regulatory documents having general requirements. parts, and depending on the inspection applicability and legal effect, most of which Accordingly, the Treasury Department results removing certain parts from are keyed to and codified in the Code of amends 2 CFR part 1000 as follows: service, applying torque, and Federal Regulations, which is published under repetitively inspecting the swashplate 50 titles pursuant to 44 U.S.C. 1510. Title 2—Grants and Agreements assembly (swashplate). This AD retains The Code of Federal Regulations is sold by Chapter X—Department of Treasury certain requirements of AD 2019–07–07, the Superintendent of Documents. expands the installation prohibition, PART 1000—UNIFORM adds additional inspections, and ADMINISTRATIVE REQUIREMENTS, updates the applicable service DEPARTMENT OF THE TREASURY COST PRINCIPLES, AND AUDIT information. The FAA is issuing this AD REQUIREMENTS FOR FEDERAL to address an unsafe condition on these 2 CFR Part 1000 AWARDS products. DATES: This AD is effective July 7, 2021. Uniform Administrative Requirements, ■ 1. The authority citation for part 1000 Cost Principles, and Audit The Director of the Federal Register continues to read as follows: approved the incorporation by reference Requirements for Federal Awards; Authority: 5 U.S.C. 301; 31 U.S.C. 301; 2 of certain publications listed in this AD Technical Amendment CFR part 200. as of July 7, 2021. AGENCY: Department of the Treasury. § 1000.336 [Redesignated as § 1000.337] ADDRESSES: For service information ACTION: Final rule; technical identified in this final rule, contact ■ amendment. 2. Redesignate § 1000.336 as Airbus Helicopters, 2701 N Forum § 1000.337 and revise it to read as Drive, Grand Prairie, TX 75052; SUMMARY: This technical amendment follows: telephone (972) 641–0000 or (800) 232– makes nonsubstantive corrections in the § 1000.337 Access to records. 0323; fax (972) 641–3775; or at https:// Department’s conforming regulations www.airbus.com/helicopters/services/ under the Uniform Administrative The right of access under 2 CFR 200.337 shall not extend to client technical-support.html. You may view Requirements, Cost Principles, and this service information at the FAA, Audit Requirements for Federal Awards. information held by attorneys or federally authorized tax practitioners Office of the Regional Counsel, DATES: Effective June 2, 2021. under the Low Income Taxpayer Clinic Southwest Region, 10101 Hillwood FOR FURTHER INFORMATION CONTACT: program. Pkwy., Room 6N–321, Fort Worth, TX Blossom Butcher-Sumner, Attorney 76177. For more information on the Advisor (Banking & Finance), Office of Blossom Butcher-Sumner, availability of this material at the FAA, the General Counsel, 202–622–0451. Attorney Advisor (Banking & Finance). call (817) 222–5110. It is also available SUPPLEMENTARY INFORMATION: On [FR Doc. 2021–11574 Filed 6–1–21; 8:45 am] on the internet at https:// January 27, 2016 (81 FR 4573), the BILLING CODE 4810–AK–P www.regulations.gov by searching for Department adopted as a final rule the and locating Docket No. FAA–2021– Office of Management and Budget’s 0135. (OMB) regulations for all Federal award- DEPARTMENT OF TRANSPORTATION Examining the AD Docket making agencies, the Uniform Administrative Requirements, Cost Federal Aviation Administration You may examine the AD docket on Principles, and Audit Requirements for the internet at https:// Federal Awards (Uniform Guidance), 14 CFR Part 39 www.regulations.gov in Docket No. FAA–2021–0135; or in person at Docket with minor deviations to make the [Docket No. FAA–2021–0135; Project Uniform Guidance consistent with Operations between 9 a.m. and 5 p.m., Identifier MCAI–2020–01044–R; Amendment Monday through Friday, except Federal existing Department policy. Treasury’s 39–21554; AD 2021–10–21] regulations are codified at 2 CFR part holidays. The AD docket contains this 1000. RIN 2120–AA64 AD, the European Aviation Safety On August 13, 2020 (85 FR 49506), Agency (now European Union Aviation Airworthiness Directives; Airbus OMB adopted revisions to the Uniform Safety Agency) (EASA) AD, any service Helicopters Deutschland GmbH Guidance. Among other things, in the information that is incorporated by final rule, OMB redesignated 2 CFR AGENCY: Federal Aviation reference, any comments received, and 200.336 as 2 CFR 200.337. This change Administration (FAA), DOT. other information. The street address for Docket Operations is U.S. Department of results in an incorrect section ACTION: Final rule. numeration and cross-reference in the Transportation, Docket Operations, Department’s regulations that is SUMMARY: The FAA is superseding M–30, West Building Ground Floor, corrected in this technical amendment. Airworthiness Directive (AD) 2019–07– Room W12–140, 1200 New Jersey 07 for various Airbus Helicopters Avenue SE, Washington, DC 20590. List of Subjects in 2 CFR Part 1000 Deutschland GmbH (Airbus Helicopters) FOR FURTHER INFORMATION CONTACT: Matt Accounting, Administrative practice Model MBB–BK117 and Model BO–105 Fuller, AD Program Manager, and procedure, Auditing, Audit helicopters. AD 2019–07–07 required Operational Safety Branch, requirements, Cost principles, removing certain part numbered Airworthiness Products Section, Cooperative agreements, Grant swashplate bellows (bellows) from General Aviation & Rotorcraft Unit,
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FAA, 10101 Hillwood Pkwy., Fort several reports of a lower clamp found This service information is reasonably Worth, TX 76177; telephone (817) 222– missing from the bellows and damaging available because the interested parties 5110; email [email protected]. the swashplate bearing ring before have access to it through their normal SUPPLEMENTARY INFORMATION: becoming detached. EASA states that an course of business or by the means investigation showed that over- identified in the ADDRESSES section. Background torqueing can damage the clamp, which Differences Between This AD and the The FAA issued a notice of proposed may have caused the clamp to become EASA AD rulemaking (NPRM) to amend 14 CFR loose and detach. EASA further advises part 39 to supersede AD 2019–07–07, that this condition, if not addressed, The EASA AD requires compliance Amendment 39–19618 (84 FR 16394, could result a detached clamp, which within different time intervals for some April 19, 2019) (AD 2019–07–07). AD could damage the swashplate and pitch actions than what this AD requires. The 2019–07–07 applied to Airbus link or strike the tail rotor, resulting in EASA AD allows a non-cumulative Helicopters Model BO–105A, BO–105C, loss of control of the helicopter. tolerance of 10 percent that may be BO–105S, BO105LS A–3, MBB–BK Accordingly, EASA AD 2016–0142R1 applied to the compliance times, and 117A–1, MBB–BK 117A–3, MBB–BK requires removing the bellows, and this AD does not. This AD applies to 117A–4, MBB–BK 117B–1, MBB–BK performing modifications, inspections, Model MBB–BK 117D–2 helicopters 117B–2, MBB–BK 117C–1, MBB–BK and corrective actions in accordance while the EASA AD does not. The 117C–2, and MBB–BK 117D–2 with the applicable service information EASA AD applies to Model BO–105D helicopters. The NPRM published in the for your helicopter. EASA AD 2016– helicopters, while this AD does not. The Federal Register on March 10, 2021 (86 0142R1 also prohibits the installation of EASA AD requires reporting corrosion FR 13665). The NPRM proposed to certain part-numbered bellows or any to Airbus Helicopters while this AD require, within 50 hours time-in-service, gearbox with certain part-numbered does not. removing the affected bellows from the bellows on any helicopter. swashplate, cleaning and inspecting the Costs of Compliance support tube for scratches, and Discussion of Final Airworthiness The FAA estimates that this AD depending on the inspection results Directive affects 211 helicopters of U.S. Registry. reworking the cylindrical area. The Comments Labor rates are estimated at $85 per NPRM proposed to require inspecting work-hour. Based on these numbers, the the clamp for corrosion, damage, and The FAA received no comments on FAA estimates that operators may incur incorrect installation, and depending on the NPRM or the determination of the the following costs in order to comply the inspection results, removing the costs. with this AD. clamp from service or reinstalling the Conclusion Inspecting the swashplate assembly clamp correctly and applying a torque. takes about 3 work-hours for an The NPRM also proposed to require These helicopters have been approved estimated cost of $255 per helicopter inspecting each ball bearing for by EASA and are approved for operation and $53,805 for the U.S. fleet per corrosion, and depending on the in the United States. Pursuant to the inspection cycle. inspection results, removing each ball FAA’s bilateral agreement with the Repairing a scratched support tube bearing from service. The NPRM European Union, EASA has notified the takes about 3 work-hours for an proposed to require inspecting the FAA of the unsafe condition described estimated cost of $255 per helicopter. deflection ring for foreign objects by in its AD. The FAA reviewed the Replacing a corroded or damaged removing the lockwire, screws, and the relevant data and determined that air clamp takes about 2 work-hours and outer deflection ring and removing any safety requires adopting this AD as parts cost about $8 for a cost of $178 per foreign objects. proposed. Accordingly, the FAA is helicopter. Additionally, the NPRM proposed to issuing this AD to address the unsafe Replacing corroded ball bearings takes require, within 400 hours TIS, condition on these helicopters. about 4 work-hours and parts cost about inspecting the swashplate for foreign Related Service Information Under 1 $3,000 for a cost of $3,340 per objects and excessive bearing rolling CFR Part 51 helicopter. friction. Finally, the NPRM proposed to Removing foreign objects from the prohibit installing a bellows P/N 105– The FAA reviewed Airbus Helicopters outer deflection ring takes about 2 work- 10113.05, P/N 4619305044, P/N Alert Service Bulletin ASB (ASB) hours for an estimated cost of $170 per 4638305043, or P/N B623M20X2240, or BO105–40A–107 for Model BO105C- helicopter. a gearbox with a bellows P/N 105– series, D-series and S-series helicopters; Authority for This Rulemaking 10113.05, P/N 4619305044, or P/N ASB BO105 LS–40A–12 for Model BO– 4638305043 on any helicopter. 105LS A–3 helicopters; ASB MBB– Title 49 of the United States Code EASA AD 2016–0142, dated July 19, BK117–40A–115 for Model MBB–BK specifies the FAA’s authority to issue 2016, which was revised to EASA AD 117 A–1, MBB–BK 117 A–3, MBB–BK rules on aviation safety. Subtitle I, 2016–0142R1, dated April 12, 2018, 117 A–4, MBB–BK 117 B–1, MBB–BK Section 106, describes the authority of issued by EASA, which is the Technical 117 B–2, and MBB–BK 117 C–1 the FAA Administrator. Subtitle VII, Agent for the Member States of the helicopters; and ASB MBB–BK117 Aviation Programs, describes in more European Union, to correct an unsafe C–2–62A–007 for Model MBB–BK 117 detail the scope of the Agency’s condition for Model MBB–BK117 A–1, C–2 helicopters, each Revision 5 and authority. MBB–BK117 A–3, MBB–BK117 A–4, dated July 25, 2017. The FAA also The FAA is issuing this rulemaking MBB–BK117 B–1, MBB–BK117 B–2, reviewed Airbus Helicopters ASB MBB– under the authority described in MBB–BK117 C–1, MBB–BK117 C–2, BK117 D–2–62A–003, Revision 3, dated Subtitle VII, Part A, Subpart III, Section and MBB–BK117 C–2e helicopters, all July 25, 2017, for Model MBB–BK 117 44701: General requirements. Under serial numbers (S/Ns), and Model D–2 helicopters. This service that section, Congress charges the FAA BO105 A, BO105 C, BO105 D, BO105 S, information specifies removing the with promoting safe flight of civil and BO105 LS A–3 helicopters, all bellows and repetitively inspecting the aircraft in air commerce by prescribing variants, all S/Ns. EASA advises of swashplate. regulations for practices, methods, and
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procedures the Administrator finds (c) Applicability (B) If the clamp is incorrectly installed, necessary for safety in air commerce. This AD applies to Airbus Helicopters before further flight install the clamp This regulation is within the scope of Deutschland GmbH Model BO–105A, BO– correctly on the shield as depicted in Detail that authority because it addresses an 105C, BO–105S, BO105LS A–3, MBB–BK 10, Figure 6 of ASB BO105–40A–107; or 117A–1, MBB–BK 117A–3, MBB–BK 117A– Detail 10, Figure 5 of ASB BO105 LS–40A– unsafe condition that is likely to exist or 12, ASB MBB–BK117–40A–115, or ASB develop on products identified in this 4, MBB–BK 117B–1, MBB–BK 117B–2, MBB– BK 117C–1, MBB–BK 117C–2, and MBB–BK MBB–BK117 C–2–62A–007; or Detail 10, rulemaking action. 117D–2 helicopters, certificated in any Figure 5 of ASB MBB–BK117 D–2–62A–003; category. as applicable to your model helicopter. Regulatory Findings (C) Apply a torque between 0.5 Nm and 0.7 The FAA has determined that this AD (d) Subject Nm to the screw and install lockwire as depicted in Detail 8, Figure 6 of ASB BO105– will not have federalism implications Joint Aircraft Service Component (JASC) Code: 6200, Main Rotor System. 40A–107; or Detail 8, Figure 5 of ASB BO105 under Executive Order 13132. This AD LS–40A–12, ASB MBB–BK117–40A–115, or will not have a substantial direct effect (e) Unsafe Condition ASB MBB–BK117 C–2–62A–007; or Detail 8, on the States, on the relationship This AD was prompted by a lower clamp Figure 5 of ASB MBB–BK117 D–2–62A–003; between the national government and found missing from the swashplate bellows as applicable to your model helicopter. the States, or on the distribution of (bellows) and damaging the swashplate (iv) Inspect each ball bearing for corrosion. power and responsibilities among the bearing ring before becoming detached. The If there is corrosion on any ball bearing, various levels of government. FAA is issuing this AD to prevent a loose before further flight, remove the ball bearing bellows clamp. The unsafe condition, if not from service. For the reasons discussed above, I addressed, could result in loss of the bellows, (v) Inspect the area under the deflection certify that this AD: contact of the bellows with the main rotor ring for foreign objects by removing the lock (1) Is not a ‘‘significant regulatory blades, main rotor mast, and tail rotor, and wire, removing the screws, and removing the action’’ under Executive Order 12866, subsequent loss of helicopter control. outer deflection ring. If there are any foreign objects, remove the foreign objects with a (2) Will not affect intrastate aviation (f) Compliance lint-free cloth. in Alaska, and Comply with this AD within the (2) Within 400 hours TIS after the effective (3) Will not have a significant compliance times specified, unless already date of this AD, after complying with the economic impact, positive or negative, done. actions in paragraph (g)(1) of this AD, and thereafter at intervals not to exceed 400 hours on a substantial number of small entities (g) Required Actions under the criteria of the Regulatory TIS, inspect the swashplate by following the (1) Within 50 hours time-in-service (TIS) Accomplishment Instructions, paragraph Flexibility Act. after the effective date of this AD: 3.B.4 of ASB BO105–40A–107; or paragraph List of Subjects in 14 CFR Part 39 (i) Remove from service bellows part 3.B.3 of ASB BO105 LS–40A–12, ASB MBB– number (P/N) 105–10113.05, P/N BK117–40A–115, ASB MBB–BK117 C–2– Air transportation, Aircraft, Aviation 4638305043, P/N 4619305044, or P/N 62A–007, or ASB MBB–BK117 D–2–62A– safety, Incorporation by reference, B623M20X2240 from the swashplate 003; as applicable to your model helicopter. Safety. assembly (swashplate). (3) After May 24, 2019 (the effective date (ii) Clean and inspect the support tube for of AD 2019–07–07), do not install a bellows Adoption of the Amendment scratches as depicted in Detail 11, Figure 6 P/N 105–10113.05, P/N 4619305044, or P/N of Airbus Helicopters Alert Service Bulletin 4638305043, or a gearbox with a bellows Accordingly, under the authority ASB (ASB) BO105–40A–107 (ASB BO105– P/N 105–10113.05, P/N 4619305044, or P/N delegated to me by the Administrator, 40A–107); or Detail 11, Figure 5 of ASB 4638305043 on any helicopter. the FAA amends 14 CFR part 39 as BO105 LS–40A–12 (ASB BO105 LS 40A–12); (4) As of the effective date of this AD, do follows: or Detail 11, Figure 5 of ASB MBB–BK117– not install a bellows P/N B623M20X2240 on 40A–115, (ASB MBB–BK117–40A–115); or any helicopter. PART 39—AIRWORTHINESS Detail 11, Figure 5 of ASB MBB–BK117 C– (h) Alternative Methods of Compliance DIRECTIVES 2–62A–007 (ASB MBB–BK117 C–2–62A– 007), each Revision 5 and dated July 25, (AMOCs) 2017; or Detail 11, Figure 5 of ASB MBB– ■ 1. The authority citation for part 39 (1) The Manager, International Validation BK117 D–2–62A–003, Revision 3, dated July Branch, FAA, has the authority to approve continues to read as follows: 25, 2017 (ASB MBB–BK117 D–2–62A–003); AMOCs for this AD, if requested using the Authority: 49 U.S.C. 106(g), 40113, 44701. as applicable to your model helicopter. If procedures found in 14 CFR 39.19. In there are scratches on the support tube, accordance with 14 CFR 39.19, send your § 39.13 [Amended] before further flight, rework the cylindrical request to your principal inspector or local area to a max depth of 0.1 mm with a ■ Flight Standards District Office, as 2. The FAA amends § 39.13 by: polishing cloth #400 or equivalent polishing appropriate. If sending information directly ■ a. Removing Airworthiness Directive cloth. The reworked area must not exceed 10 to the manager of the International Validation 2 (AD) 2019–07–07, Amendment 39– mm in width or 3 cm in area, the minimum Branch, send it to the attention of the person 19618 (84 FR 16394, April 19, 2019); separation between any adjacent reworked identified in paragraph (i)(1) of this AD. areas must be 30 mm, and total reworked Information may be emailed to: 9-AVS-AIR- and areas must not exceed 10 percent of the ■ [email protected]. b. Adding the following new AD: cylindrical area. (2) Before using any approved AMOC, (iii) Inspect the clamp for corrosion and 2021–10–21 Airbus Helicopters notify your appropriate principal inspector, correct installation. Deutschland GmbH: Amendment 39– or lacking a principal inspector, the manager 21554; Docket No. FAA–2021–0135; Note 1 to paragraph (g)(1)(iii): A figure of of the local flight standards district office/ Project Identifier MCAI–2020–01044–R. the clamp is depicted in Detail 9, Figure 6 certificate holding district office. of ASB BO105–40A–107; or Detail 9, Figure (a) Effective Date 5 of ASB BO105 LS–40A–12, ASB MBB– (i) Related Information This airworthiness directive (AD) is BK117–40A–115, or ASB MBB–BK117 C–2– (1) For more information about this AD, effective July 7, 2021. 62A–007; or Detail 9, Figure 5 of ASB MBB– contact Matt Fuller, AD Program Manager, BK117 D–2–62A–003; as applicable to your Operational Safety Branch, Airworthiness (b) Affected ADs model helicopter. Products Section, General Aviation & This AD replaces AD 2019–07–07, (A) If there is corrosion on the clamp, Rotorcraft Unit, FAA, 10101 Hillwood Pkwy., Amendment 39–19618 (84 FR 16394, April before further flight remove the clamp from Fort Worth, TX 76177; telephone (817) 222– 19, 2019) (2019–07–07). service. 5110; email [email protected].
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(2) The subject of this AD is addressed in ACTION: Final rule. apply to certain serial-numbered European Aviation Safety Agency (now Mooney Model M20V airplanes. The European Union Aviation Safety Agency) SUMMARY: The FAA is adopting a new NPRM published in the Federal (EASA) AD 2016–0142R1, dated April 12, airworthiness directive (AD) for certain 2018. You may view the EASA AD on the Register on March 9, 2021 (86 FR 13502; Mooney International Corporation corrected March 17, 2021, 86 FR 14554). internet at https://www.regulations.gov in (Mooney) Model M20V airplanes. This Docket No. FAA–2021–0135. The NPRM was prompted by reports of AD was prompted by reports of short short circuit and arcing of the alternator (j) Material Incorporated by Reference circuit and arcing of the alternator main main power cable in the engine (1) The Director of the Federal Register power cable in the engine compartment. compartment. Mooney determined the approved the incorporation by reference of This condition, if unaddressed, could alternator main power cable was the service information listed in this result in a fire hazard, loss of engine paragraph under 5 U.S.C. 552(a) and 1 CFR incorrectly positioned with slack in the thrust control, and reduced control of cable and allowed contact between the part 51. the airplane. This AD requires (2) You must use this service information alternator main power cable and as applicable to do the actions required by inspecting the alternator main power turbocharger right-hand (RH) exhaust this AD, unless the AD specifies otherwise. cable and the exhaust crossover tube for crossover tube. In one instance, this (i) Airbus Helicopters Alert Service damage, replacing damaged parts as contact caused arcing of the alternator Bulletin ASB (ASB) BO105–40A–107, necessary, and installing an additional main power cable and created a hole in Revision 5, dated July 25, 2017. alternator cable clamp. The FAA is (ii) Airbus Helicopters ASB BO105 LS– the RH exhaust crossover tube, which issuing this AD to address the unsafe may result in a fire hazard. A damaged 40A–12, Revision 5, dated July 25, 2017. condition on these products. (iii) Airbus Helicopters ASB MBB–BK117– crossover tube may also decrease 40A–115, Revision 5, dated July 25, 2017. DATES: This AD is effective July 7, 2021. effectiveness of the turbochargers and (iv) Airbus Helicopters ASB MBB–BK117 The Director of the Federal Register cause complete loss of engine power at C–2–62A–007, Revision 5, dated July 25, approved the incorporation by reference higher altitudes (above 9,000 ft. above 2017. of a certain publication listed in this AD sea level). In the NPRM, the FAA (v) Airbus Helicopters ASB MBB–BK117 as of July 7, 2021. proposed to require inspecting the D–2–62A–003, Revision 3, dated July 25, 2017. ADDRESSES: For service information alternator main power cable and the (3) For service information identified in identified in this final rule, contact exhaust crossover tube and modifying this AD, contact Airbus Helicopters, 2701 N Mooney International Corporation, 165 the alternator main power cable routing Forum Drive, Grand Prairie, TX 75052; Al Mooney Road, North Kerrville, TX by installing an additional alternator telephone (972) 641–0000 or (800) 232–0323; 78028; phone: (800) 456–3033; email: cable clamp, part number (P/N) fax (972) 641–3775; or at https:// [email protected]. You may view MS21919WCJ6. This condition, if not www.airbus.com/helicopters/services/ this service information at the FAA, addressed, could result in an inflight technical-support.html. Airworthiness Products Section, fire and loss of engine thrust control, (4) You may view this service information at the FAA, Office of the Regional Counsel, Operational Safety Branch, 901 Locust, which may lead to reduced control of Southwest Region, 10101 Hillwood Pkwy., Kansas City, MO 64106. For information the airplane. The FAA is issuing this AD Room 6N–321, Fort Worth, TX 76177. For on the availability of this material at the to address the unsafe condition on these information on the availability of this FAA, call (816) 329–4148. It is also products. material at the FAA, call (817) 222–5110. available at https://www.regulations.gov (5) You may view this service information Discussion of Final Airworthiness by searching for and locating Docket No. Directive that is incorporated by reference at the FAA 2021–0223. National Archives and Records Comments Administration (NARA). For information on Examining the AD Docket the availability of this material at NARA, The FAA received no comments on You may examine the AD docket at email [email protected], or go to: https:// the NPRM or on the determination of https://www.regulations.gov by www.archives.gov/federal-register/cfr/ibr- the costs. locations.html. searching for and locating Docket No. Conclusion Issued on Issued on May 5, 2021. FAA–2021–0223; or in person at Docket Operations between 9 a.m. and 5 p.m., Lance T. Gant, The FAA reviewed the relevant data Monday through Friday, except Federal and determined that air safety requires Director, Compliance & Airworthiness holidays. The AD docket contains this Division, Aircraft Certification Service. adopting this AD as proposed. final rule, any comments received, and Accordingly, the FAA is issuing this AD [FR Doc. 2021–11444 Filed 6–1–21; 8:45 am] other information. The address for BILLING CODE 4910–13–P to address the unsafe condition on these Docket Operations is U.S. Department of products. This AD is adopted as Transportation, Docket Operations, proposed in the NPRM. M–30, West Building Ground Floor, DEPARTMENT OF TRANSPORTATION Room W12–140, 1200 New Jersey Related Service Information Under 1 Federal Aviation Administration Avenue SE, Washington, DC 20590. CFR Part 51 FOR FURTHER INFORMATION CONTACT: The FAA reviewed Mooney 14 CFR Part 39 Jacob Fitch, Aviation Safety Engineer, International Corporation Service Fort Worth ACO Branch, FAA, 10101 Bulletin M20–340C, dated February 14, [Docket No. FAA–2021–0223; Project Identifier AD–2020–00539–A; Amendment Hillwood Pkwy., Fort Worth, TX 76177; 2020. The service information specifies 39–21550; AD 2021–10–17] phone: (817) 222–4130; fax: (817) 222– inspecting the alternator main power 5245; email: [email protected]. cable and the exhaust crossover tube for RIN 2120–AA64 SUPPLEMENTARY INFORMATION: damage and replacing damaged parts as necessary. The service information also Airworthiness Directives; Mooney Background International Corporation Airplanes contains procedures for modifying the The FAA issued a notice of proposed alternator main power cable routing by AGENCY: Federal Aviation rulemaking (NPRM) to amend 14 CFR installing an additional alternator cable Administration (FAA), DOT. part 39 by adding an AD that would clamp, P/N MS21919WCJ6.
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This service information is reasonably Costs of Compliance The FAA estimates the following available because the interested parties costs to comply with this AD: have access to it through their normal The FAA estimates that this AD course of business or by the means affects 18 airplanes of U.S. registry. identified in ADDRESSES.
ESTIMATED COSTS
Cost per Cost on U.S. Action Labor cost Parts cost product operators
Inspect the cable and exhaust crossover tube .5 work-hour × $85 per hour = $42.50 ...... $0 $42.50 $765 for damage. Install additional cable clamp ...... 5 work-hour × $85 per hour = $42.50 ...... 10 52.50 945
The FAA estimates the following results of the inspection. The agency has airplanes that might need these costs to do any necessary replacements no way of determining the number of replacements: that would be required based on the
ON-CONDITION COSTS
Cost per Action Labor cost Parts cost product
Replace alternator main power cable ...... 8 work-hours × $85 per hour = $680 ...... $1,000 $1,680 Replace exhaust crossover tube ...... 8 work-hours × $85 per hour = $680 ...... 2,500 3,180
The FAA has included all known responsibilities among the various (a) Effective Date costs in its cost estimate. According to levels of government. This airworthiness directive (AD) is the manufacturer, however, some of the For the reasons discussed above, I effective July 7, 2021. costs of this AD may be covered under certify that this AD: (b) Affected ADs warranty, thereby reducing the cost (1) Is not a ‘‘significant regulatory None. impact on affected operators. action’’ under Executive Order 12866, (c) Applicability Authority for This Rulemaking (2) Will not affect intrastate aviation in Alaska, and This AD applies to Mooney International Title 49 of the United States Code (3) Will not have a significant Corporation Model M20V airplanes, serial specifies the FAA’s authority to issue numbers 33–0001 through 33–0018, economic impact, positive or negative, certificated in any category. rules on aviation safety. Subtitle I, on a substantial number of small entities section 106, describes the authority of under the criteria of the Regulatory (d) Subject the FAA Administrator. Subtitle VII: Flexibility Act. Joint Aircraft System Component Code Aviation Programs, describes in more 2400, Electrical Power System. List of Subjects in 14 CFR Part 39 detail the scope of the Agency’s (e) Unsafe Condition authority. Air transportation, Aircraft, Aviation This AD was prompted by reports of short The FAA is issuing this rulemaking safety, Incorporation by reference, circuit and arcing of the alternator main under the authority described in Safety. power cable in the engine compartment. The Subtitle VII, Part A, Subpart III, Section FAA is issuing this AD to prevent arcing of The Amendment 44701: General requirements. Under the alternator main power cable in the engine that section, Congress charges the FAA Accordingly, under the authority compartment. This condition, if not with promoting safe flight of civil delegated to me by the Administrator, addressed, could result in an inflight fire and loss of engine thrust control, which may lead aircraft in air commerce by prescribing the FAA amends 14 CFR part 39 as to reduced control of the airplane. regulations for practices, methods, and follows: procedures the Administrator finds (f) Compliance necessary for safety in air commerce. PART 39—AIRWORTHINESS Comply with this AD before further flight This regulation is within the scope of DIRECTIVES after the effective date of this AD, unless that authority because it addresses an already done. ■ unsafe condition that is likely to exist or 1. The authority citation for part 39 (g) Required Actions continues to read as follows: develop on products identified in this (1) Inspect the alternator main power cable rulemaking action. Authority: 49 U.S.C. 106(g), 40113, 44701. and the exhaust crossover tube for burn marks, chafing, holes, and cracks, and Regulatory Findings § 39.13 [Amended] replace any cable and crossover tube that has This AD will not have federalism ■ 2. The FAA amends § 39.13 by adding a burn mark, chafing, a hole, or a crack. implications under Executive Order the following new airworthiness (2) Install an additional alternator cable 13132. This AD will not have a directive: clamp part number MS21919WCJ6 and ensure correct routing of the alternator main substantial direct effect on the States, on 2021–10–17 Mooney International power cable by following steps 1.5. through the relationship between the national Corporation: Amendment 39–21550; 1.9. of the Instructions in Mooney government and the States, or on the Docket No. FAA–2021–0223; Project International Corporation Service Bulletin distribution of power and Identifier AD–2020–00539–A. M20–340C, dated February 14, 2020.
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(h) Special Flight Permit Issued on May 5, 2021. Title 49 of the United States Code. A special flight permit may be issued with Lance T. Gant, Subtitle I, Section 106 describes the the following limitations: Director, Compliance & Airworthiness authority of the FAA Administrator. (1) Flights must not carry passengers; Division, Aircraft Certification Service. Subtitle VII, Aviation Programs, (2) Operation in daytime visual [FR Doc. 2021–11443 Filed 6–1–21; 8:45 am] describes in more detail the scope of the meteorological conditions only; BILLING CODE 4910–13–P agency’s authority. This rulemaking is (3) Straight and level flight must be promulgated under the authority maintained; described in Subtitle VII, Part A, (4) Operation in areas of known turbulence DEPARTMENT OF TRANSPORTATION Subpart I, Section 40103. Under that prohibited; and section, the FAA is charged with (5) Altitude limited to 9,000 ft. above sea Federal Aviation Administration prescribing regulations to assign the use level. of the airspace necessary to ensure the (i) Alternative Methods of Compliance 14 CFR Part 71 safety of aircraft and the efficient use of (AMOCs) [Docket No. FAA–2021–0062 Airspace airspace. This regulation is within the (1) The Manager, Fort Worth ACO Branch, Docket No. 20–ASO–21] scope of that authority as it improves the efficiency of the NAS by lessening FAA, has the authority to approve AMOCs RIN 2120–AA66 for this AD, if requested using the procedures the dependency on ground-based found in 14 CFR 39.19. In accordance with Amendment of Area Navigation (RNAV) navigation aids. 14 CFR 39.19, send your request to your Route T–207; in the Vicinity of Cecil, History principal inspector or local Flight Standards FL District Office, as appropriate. If sending The FAA published a notice of information directly to the manager of the AGENCY: Federal Aviation proposed rulemaking for Docket No. certification office, send it to the attention of Administration (FAA), DOT. FAA–2021–0062 in the Federal Register the person identified in Related Information. ACTION: Final rule. (86 FR 12866; March 5, 2021) amending (2) Before using any approved AMOC, low altitude RNAV route T–207 by notify your appropriate principal inspector, SUMMARY: This action amends low removing the Cecil, FL, VOR from the or lacking a principal inspector, the manager altitude RNAV route T–207 in Florida route description. Interested parties of the local flight standards district office/ by removing the Cecil, FL (VQQ), VOR were invited to participate in this certificate holding district office. from the route description due to the rulemaking effort by submitting written (j) Related Information planned decommissioning of that VOR. comments on the proposal. No The removal does not affect navigation comments were received. For more information about this AD, along the route. contact Jacob Fitch, Aviation Safety Engineer, United States Area Navigation routes Fort Worth ACO Branch, FAA, 10101 DATES: Effective date 0901 UTC, August are published in paragraph 6011 of FAA Hillwood Pkwy., Fort Worth, TX 76177; 12, 2021. The Director of the Federal Order 7400.11E, dated July 21, 2020, phone: (817) 222–4130; fax: (817) 222–5245; Register approves this incorporation by and effective September 15, 2020, which email: [email protected]. reference action under 1 CFR part 51, is incorporated by reference in 14 CFR subject to the annual revision of FAA (k) Material Incorporated by Reference 71.1. The RNAV route listed in the Order 7400.11 and publication of document will be subsequently (1) The Director of the Federal Register conforming amendments. published in the Order. approved the incorporation by reference of ADDRESSES: FAA Order 7400.11E, the service information listed in this Airspace Designations and Reporting Availability and Summary of paragraph under 5 U.S.C. 552(a) and 1 CFR Points, and subsequent amendments can Documents for Incorporation by part 51. be viewed online at https:// Reference (2) You must use this service information _ as applicable to do the actions required by www.faa.gov/air traffic/publications/. This document amends FAA Order this AD, unless the AD specifies otherwise. For further information, you can contact 7400.11E, Airspace Designations and (i) Mooney International Corporation the Rules and Regulations Group, Reporting Points, dated July 21, 2020, Service Bulletin M20–340C, dated February Federal Aviation Administration, 800 and effective September 15, 2020. FAA 14, 2020. Independence Avenue SW, Washington, Order 7400.11E is publicly available as (ii) [Reserved] DC 20591; telephone: (202) 267–8783. listed in the ADDRESSES section of this (3) For Mooney International Corporation The Order is also available for document. FAA Order 7400.11E lists service information identified in this AD, inspection at the National Archives and Class A, B, C, D, and E airspace areas, contact Mooney International Corporation, Records Administration (NARA). For air traffic service routes, and reporting 165 Al Mooney Road, North Kerrville, TX information on the availability of FAA points. 78028; phone: (800) 456–3033; email: Order 7400.11E at NARA, email: [email protected]. [email protected] or go to https:// The Rule (4) You may view this service information www.archives.gov/federal-register/cfr/ This action amends 14 CFR part 71 by at FAA, Airworthiness Products Section, ibr-locations.html. amending low altitude RNAV route Operational Safety Branch, 901 Locust, FOR FURTHER INFORMATION CONTACT: Paul T–207 by removing the Cecil, FL (VQQ), Kansas City, MO 64106. For information on Gallant, Rules and Regulations Group, VOR from the route description. This the availability of this material at the FAA, call (816) 329–4148. Office of Policy, Federal Aviation action is necessary due to the planned (5) You may view this service information Administration, 800 Independence decommissioning of the Cecil VOR. The that is incorporated by reference at the Avenue SW, Washington, DC 20591; Cecil VOR is located along a straight National Archives and Records telephone: (202) 267–8783. segment of T–207 between the CARRA, Administration (NARA). For information on SUPPLEMENTARY INFORMATION: FL, Fix, and the MONIA, FL, Fix. The the availability of this material at NARA, VOR is not a required component for Authority for This Rulemaking email: [email protected], or go to: navigating on T–207. Removal of the https://www.archives.gov/federal-register/cfr/ The FAA’s authority to issue rules Cecil VOR does not affect the alignment ibr-locations.html. regarding aviation safety is found in of, or navigation along, T–207.
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In addition, all latitude/longitude Environmental Review environmental assessment or coordinates in the route description are The FAA has determined that this environmental impact study. updated to the hundredths of a second airspace action of amending the low List of Subjects in 14 CFR Part 71 place for greater navigation accuracy. altitude area navigation route T–207 due FAA Order 7400.11, Airspace to the decommissioning of the Cecil, FL, Airspace, Incorporation by reference, Designations and Reporting Points, is VOR qualifies for categorical exclusion Navigation (air). published yearly and effective on under the National Environmental The Amendment September 15. Policy Act (42 U.S.C. 4321 et seq.) and its implementing regulations at 40 CFR In consideration of the foregoing, the Regulatory Notices and Analyses part 1500, and in accordance with FAA Federal Aviation Administration Order 1050.1F, Environmental Impacts: amends 14 CFR part 71 as follows: The FAA has determined that this Policies and Procedures, paragraph regulation only involves an established 5–6.5a, which categorically excludes PART 71—DESIGNATION OF CLASS A, body of technical regulations for which from further environmental impact B, C, D, AND E AIRSPACE AREAS; AIR frequent and routine amendments are review rulemaking actions that TRAFFIC SERVICE ROUTES; AND necessary to keep them operationally designate or modify classes of airspace REPORTING POINTS current. It, therefore: (1) Is not a areas, airways, routes, and reporting ‘‘significant regulatory action’’ under points (see 14 CFR part 71, Designation ■ 1. The authority citation for part 71 Executive Order 12866; (2) is not a of Class A, B, C, D, and E Airspace continues to read as follows: ‘‘significant rule’’ under Department of Areas; Air Traffic Service Routes; and Authority: 49 U.S.C. 106(f), 106(g); 40103, Transportation (DOT) Regulatory Reporting Points). As such, this action 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, Policies and Procedures (44 FR 11034; is not expected to result in any 1959–1963 Comp., p. 389. February 26, 1979); and (3) does not potentially significant environmental § 71.1 [Amended] warrant preparation of a regulatory impacts. In accordance with FAA Order evaluation as the anticipated impact is 1050.1F, paragraph 5–2 regarding ■ 2. The incorporation by reference in so minimal. Since this is a routine Extraordinary Circumstances, the FAA 14 CFR 71.1 of FAA Order 7400.11E, has reviewed this action for factors and matter that only affects air traffic Airspace Designations and Reporting circumstances in which a normally procedures and air navigation, it is Points, dated July 21, 2020, and categorically excluded action may have certified that this rule, when effective September 15, 2020, is a significant environmental impact promulgated, does not have a significant amended as follows: requiring further analysis. Accordingly, economic impact on a substantial the FAA has determined that no Paragraph 6011 United States Area number of small entities under the extraordinary circumstances exist that Navigation Routes. criteria of the Regulatory Flexibility Act. warrant preparation of an * * * * *
***** T–207 ORMOND BEACH, (OMN) TO WAYCROSS, GA (AYS) [AMENDED]
Ormond Beach, FL (OMN) VORTAC (Lat. 29°18′11.71″ N, long. 81°06′45.71″ W) CARRA, FL Fix (Lat. 29°43′50.91″ N, long. 81°36′29.10″ W) MONIA, FL Fix (Lat. 30°28′49.00″ N, long. 82°02′53.44″ W) Waycross, GA (AYS) VORTAC (Lat. 31°16′09.93″ N, long. 82°33′23.20″ W)
*****
Issued in Washington, DC, on May 25, DEPARTMENT OF TRANSPORTATION NY, VOR/DME (GFL) that is used to 2021. define a navigation fix along the route. George Gonzalez, Federal Aviation Administration Additionally, this action removes Acting Manager, Rules and Regulations segments of V–487 between Burlington, Group. 14 CFR Part 71 VT, and St Jean, Canada. These changes are necessary due to the [FR Doc. 2021–11425 Filed 6–1–21; 8:45 am] [Docket No. FAA–2021–0042; Airspace decommissioning of the Glens Falls, BILLING CODE 4910–13–P Docket No. 20–AEA–13] NY, VOR/DME, and the RIN 2120–AA66 decommissioning of the St Jean, Canada, VOR/DME (YJN). Amendment VOR Federal Airway DATES: Effective date 0901 UTC, August V–487; Eastern New York and Northern 12, 2021. The Director of the Federal Vermont Register approves this incorporation by AGENCY: Federal Aviation reference action under 1 CFR part 51, Administration (FAA), DOT. subject to the annual revision of FAA Order 7400.11 and publication of ACTION: Final rule. conforming amendments. SUMMARY: This action amends VOR ADDRESSES: FAA Order 7400.11E, Federal airway V–487 in the vicinity of Airspace Designations and Reporting Glens Falls, NY, and Burlington, VT. Points, and subsequent amendments can The change substitutes a radial from the be viewed online at https:// Burlington, VT, VOR/DME (BTV), in www.faa.gov/air_traffic/publications/. place of a radial from the Glens Falls, For further information, you can contact
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the Rules and Regulations Group, Order 7400.11E is publicly available as Environmental Review Federal Aviation Administration, 800 listed in the ADDRESSES section of this Independence Avenue SW, Washington, document. FAA Order 7400.11E lists The FAA has determined that this DC 20591; telephone: (202) 267–8783. Class A, B, C, D, and E airspace areas, airspace action of amending VOR The Order is also available for air traffic service routes, and reporting Federal airway V–487 due to the inspection at the National Archives and points. decommissioning of the Glens Falls, Records Administration (NARA). For NY, VOR/DME, and the information on the availability of FAA The Rule decommissioning of the St Jean, Canada, Order 7400.11E at NARA, email: VOR/DME, qualifies for categorical This action amends 14 CFR part 71 by [email protected] or go to https:// exclusion under the National amending VOR Federal airway V–487 in www.archives.gov/federal-register/cfr/ Environmental Policy Act (42 U.S.C. the vicinity of Glens Falls, NY, and ibr-locations.html. 4321 et seq.) and its implementing Burlington, VT. The change substitutes FOR FURTHER INFORMATION CONTACT: Paul regulations at 40 CFR part 1500, and in a radial from the Burlington, VT, VOR/ Gallant, Rules and Regulations Group, accordance with FAA Order 1050.1F, DME, in place of the Glens Falls, NY, Office of Policy, Federal Aviation Environmental Impacts: Policies and VOR/DME radial, that defines the Administration, 800 Independence Procedures, paragraph 5–6.5a, which ENSON, VT, navigation fix. Currently, Avenue SW, Washington, DC 20591; categorically excludes from further the ENSON, VT, navigation fix is telephone: (202) 267–8783. environmental impact review defined by the intersection of the SUPPLEMENTARY INFORMATION: rulemaking actions that designate or Cambridge, NY, VOR/DME (CAM) 002° modify classes of airspace areas, Authority for This Rulemaking radial, and the Glens Falls, NY, VOR/ airways, routes, and reporting points ° The FAA’s authority to issue rules DME 032 radial. (see 14 CFR part 71, Designation of regarding aviation safety is found in This change is necessary because the Class A, B, C, D, and E Airspace Areas; Title 49 of the United States Code. Glens Falls VOR/DME has been Air Traffic Service Routes; and Subtitle I, Section 106 describes the decommissioned and is no longer in Reporting Points). As such, this action authority of the FAA Administrator. service. As amended, the ENSON fix is is not expected to result in any Subtitle VII, Aviation Programs, defined by the intersection of the potentially significant environmental describes in more detail the scope of the Burlington, VT, 187°, and the impacts. In accordance with FAA Order agency’s authority. This rulemaking is Cambridge, NY 002° radials. This 1050.1F, paragraph 5–2 regarding promulgated under the authority change does not affect navigation along Extraordinary Circumstances, the FAA described in Subtitle VII, Part A, that portion of V–487. has reviewed this action for factors and Subpart I, Section 40103. Under that circumstances in which a normally Additionally, this action removes the section, the FAA is charged with categorically excluded action may have segment of V–487 that extends between prescribing regulations to assign the use a significant environmental impact the Burlington, VT, VOR/DME, and the of the airspace necessary to ensure the requiring further analysis. Accordingly, safety of aircraft and the efficient use of St Jean, Canada VOR/DME due to the the FAA has determined that no airspace. This regulation is within the decommissioning of the St Jean VOR/ extraordinary circumstances exist that scope of that authority as it modifies the DME. The amended route V–487 warrant preparation of an route structure as necessary to preserve extends between LaGuardia, NY, and environmental assessment or the safe and efficient flow of air traffic Burlington, VT. environmental impact study. within the National Airspace System. FAA Order 7400.11, Airspace List of Subjects in 14 CFR Part 71 Designations and Reporting Points, is History published yearly and effective on Airspace, Incorporation by reference, The FAA published a notice of September 15. Navigation (air). proposed rulemaking for Docket No. FAA–2021–0042 in the Federal Register Regulatory Notices and Analyses Adoption of the Amendment (86 FR 12865; March 5, 2021), amending The FAA has determined that this VOR Federal airway V–487, in eastern In consideration of the foregoing, the regulation only involves an established New York and northern Vermont. Federal Aviation Administration body of technical regulations for which Interested parties were invited to amends 14 CFR part 71 as follows: frequent and routine amendments are participate in this rulemaking effort by necessary to keep them operationally PART 71—DESIGNATION OF CLASS A, submitting written comments on the B, C, D, AND E AIRSPACE AREAS; AIR proposal. No comments were received. current. It, therefore: (1) Is not a ‘‘significant regulatory action’’ under TRAFFIC SERVICE ROUTES; AND VOR Federal airways are published in REPORTING POINTS paragraph 6010(a) of FAA Order Executive Order 12866; (2) is not a 7400.11E dated July 21, 2020, and ‘‘significant rule’’ under Department of ■ effective September 15, 2020, which is Transportation (DOT) Regulatory 1. The authority citation for part 71 incorporated by reference in 14 CFR Policies and Procedures (44 FR 11034; continues to read as follows: 71.1. The VOR Federal airways listed in February 26, 1979); and (3) does not Authority: 49 U.S.C. 106(f), 106(g); 40103, this document will be subsequently warrant preparation of a regulatory 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, published in the Order. evaluation as the anticipated impact is 1959–1963 Comp., p. 389. so minimal. Since this is a routine Availability and Summary of matter that only affects air traffic § 71.1 [Amended] Documents for Incorporation by procedures and air navigation, it is ■ 2. The incorporation by reference in Reference certified that this rule, when 14 CFR 71.1 of FAA Order 7400.11E, This document amends FAA Order promulgated, does not have a significant Airspace Designations and Reporting 7400.11E, Airspace Designations and economic impact on a substantial Points, dated July 21, 2020, and Reporting Points, dated July 21, 2020, number of small entities under the effective September 15, 2020, is and effective September 15, 2020. FAA criteria of the Regulatory Flexibility Act. amended as follows:
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Paragraph 6010(a) Domestic VOR Federal SUMMARY: The Federal Energy Compliance date: Public utilities must Airways. Regulatory Commission (Commission) is make a compliance filing to comply * * * * * revising its regulations to incorporate by with the requirements of this final rule V–487 [Amended] reference the latest version (Version through eTariff twelve months after 003.3) of the Standards for Business implementation of the WEQ Version From LaGuardia, NY; Bridgeport, CT; INT Practices and Communication Protocols 003.2 Standards, but no earlier than Bridgeport 343° and Cambridge, NY, 189° radials; Cambridge; INT Burlington, VT, 187° for Public Utilities adopted by the October 27, 2022. Compliance filings for and Cambridge 002° radials; Burlington. Wholesale Electric Quadrant (WEQ) of cybersecurity and Parallel Flow the North American Energy Standards Visualization standards are due March * * * * * Board (NAESB). The WEQ Version 2, 2022. Issued in Washington, DC, on May 25, 003.3 Standards include, in their FOR FURTHER INFORMATION CONTACT: 2021. entirety, the WEQ–023 Modeling George Gonzalez, Michael P. Lee (technical issues), Office Business Practice Standards contained of Energy Policy and Innovation, Acting Manager, Rules and Regulations in the WEQ Version 003.1 Standards, Group. Federal Energy Regulatory which address the technical issues Commission, 888 First Street NE, [FR Doc. 2021–11429 Filed 6–1–21; 8:45 am] affecting Available Transfer Capability Washington, DC 20426, (202) 502– BILLING CODE 4910–13–P (ATC) and Available Flowgate 6548. Capability (AFC) calculation for Peter Whitman (technical issues), Office wholesale electric transmission services, of Energy Policy and Innovation, with the addition of certain revisions DEPARTMENT OF ENERGY Federal Energy Regulatory and corrections. The Commission also Commission, 888 First Street NE, revises its regulations to provide that Federal Energy Regulatory Washington, DC 20426, (202) 502– transmission providers must avoid Commission 6225. unduly discriminatory and preferential Michael A. Chase (legal issues), Office treatment in the calculation of ATC. 18 CFR Parts 37 and 38 of the General Counsel, Federal DATES: Effective date: This rule is Energy Regulatory Commission, 888 [Docket Nos. RM05–5–029 and RM05–5– effective August 2, 2021. First Street NE, Washington, DC 030; Order No. 676–J] Incorporation by reference: The 20426, (202) 502–6205. incorporation by reference of certain Standards for Business Practices and Mark Bennett (legal issues), Office of the publications listed in this rule is General Counsel, Federal Energy Communication Protocols for Public approved by the Director of the Federal Utilities Regulatory Commission, 888 First Register as of August 2, 2021. The Street NE, Washington, DC 20426, AGENCY: Federal Energy Regulatory incorporation by reference of certain (202) 502–8524. other publications listed in this rule was Commission, Department of Energy. SUPPLEMENTARY INFORMATION: approved by the Director of the Federal ACTION: Final rule. Register as of April 27, 2020. Table of Contents
Paragraph Nos.
I. Background ...... 3. A. NAESB and Past Standards ...... 3. B. Summary of NAESB WEQ Version 003.3 ...... 9. II. Discussion ...... 17. A. Overview ...... 17. B. Issues Raised by Commenters ...... 20. 1. Changes to OASIS ...... 21. 2. Incorporation of WEQ–023 Standards 1.4 and 1.4.1 ...... 25. 3. Changes to the Regulatory Text ...... 33. III. Waiver Requests and Implementation Issues ...... 41. A. Waiver Requests ...... 41. 1. Comments ...... 41. 2. Commission Determination ...... 42. B. Implementation ...... 43. 1. NOPR Proposal ...... 43. 2. Comments ...... 44. 3. Commission Determination ...... 48. IV. Notice of Use of Voluntary Consensus Standards ...... 52. V. Incorporation by Reference ...... 53. VI. Information Collection Statement ...... 71. VII. Environmental Analysis ...... 75. VIII. Regulatory Flexibility Act ...... 76. IX. Document Availability ...... 79. X. Effective Date and Congressional Notification ...... 82.
1. The Federal Energy Regulatory Act (FPA) 1 to incorporate by reference version (Version 003.3) of the Standards Commission (Commission) is amending into its regulations as mandatory for Business Practices and its regulations under the Federal Power enforceable requirements, the latest Communication Protocols for Public Utilities adopted by the Wholesale 1 16 U.S.C. 791a, et seq. (2018). Electric Quadrant (WEQ) of the North
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American Energy Standards Board National Standards Institute (ANSI), 003.2 NOPR on May 16, 2019, wherein (NAESB), filed with the Commission on complying with ANSI’s requirements the Commission proposed to revise its March 30, 2020 (March 30 Filing). The that its standards reflect a consensus of regulations to incorporate by reference WEQ Version 003.3 Standards build the affected industries.4 the WEQ Version 003.2 Standards, with upon an earlier version of the standards 4. NAESB’s standards include certain enumerated exceptions.7 The that the Commission previously business practices intended to Commission announced that NAESB’s included and incorporated by reference standardize and streamline the WEQ–023 Modeling Business Practice into its regulations at 18 CFR parts 2 transactional processes of the natural Standards would be addressed and 38, respectively, in Order No. 676– gas and electric industries, as well as separately, proposing only to I.2 communication protocols and related incorporate by reference the WEQ–023 2. The WEQ Version 003.3 Standards standards designed to improve the Modeling Business Practice Standards include newly created standards as well efficiency of communication within that were moved from the WEQ–001 as modifications to existing standards each industry. NAESB supports all three OASIS Business Practice Standards by developed through the NAESB Business ‘‘quadrants’’ of the gas and electric the changes made to the WEQ Version Practice Standards development or industries: wholesale gas, wholesale 003.1 Standards.8 minor correction processes. The WEQ electric, and retail markets.5 All 7. On February 4, 2020, the Version 003.3 Standards include participants in the gas and electric Commission issued Order No. 676–I, in revisions related to the surety industries are eligible to join NAESB which it amended its regulations under assessment on cybersecurity performed and participate in standards the FPA to incorporate by reference into by Sandia National Laboratories development. its regulations as mandatory enforceable (Sandia) designed to strengthen the 5. NAESB develops its standards requirements, with certain enumerated practices and cybersecurity protections under a consensus process so that the exceptions, the WEQ Version 003.2 established within the standards. standards draw support from a wide Standards. The WEQ Version 003.2 NAESB also revised its Open Access range of industry members. NAESB’s Standards included the changes Same-Time Information System (OASIS) procedures are designed to ensure that proposed in WEQ Version 003.1 3 suite of standards, including revisions all persons choosing to participate can Standards, which were the subject of an to support new OASIS functionality that have input into the development of a earlier notice of proposed rulemaking.9 will allow for the posting of third party standard, regardless of whether they are All of these standards, except for the offers of planning redispatch services as members of NAESB, and each standard WEQ–022 and WEQ–023 Business well as providing additional NAESB adopts must be supported by a Practice Standards, update and replace information regarding the curtailment of consensus of the relevant industry standards that the Commission firm transmission service. In addition, segments. Standards that fail to gain previously incorporated by reference in consensus support are not adopted. the WEQ Version 003.3 Standards Order No. 676–H. NAESB’s consistent practice has been to include revisions to the NAESB WEQ– 8. Among the NAESB Business submit a report to the Commission after 023 Modeling Business Practice Practice Standards incorporated by it has revised existing business practice Standards. The Commission also revises reference in Order No. 676–I, the standards or has developed and adopted 18 CFR 37.6(b)(2)(i) to codify that the Commission incorporated the WEQ–022 new business practice standards. calculation of Available Transfer Electric Industry Registry (EIR) Business NAESB’s standards are initially Capability (ATC) must be conducted in Practice Standards, but did not voluntary standards, which become manner that is transparent, consistent incorporate by reference in its entirety mandatory for public utilities upon with system conditions and outages for the WEQ–023 Modeling Business incorporation by reference by the the relevant timeframe, and not unduly Practice Standards. The Commission discriminatory or preferential. Commission. 6. NAESB filed its WEQ Version 003.2 only incorporated by reference the I. Background Business Practices Standards (WEQ WEQ–023 Modeling Business Practice Standards that were moved from the A. NAESB and Past Standards Version 003.2 Standards) on December 8, 2017 (December 8 Filing), in Docket WEQ–001 OASIS Business Practice 3. NAESB is a non-profit standards No. RM05–5–027.6 After consideration Standards by the changes made to the 10 development organization established in of the December 8 Filing, the WEQ Version 003.1 Standards. The late 2001 (as the successor to the Gas Commission issued the WEQ Version Commission also did not adopt the Industry Standards Board (GISB), which NOPR proposal to incorporate by was established in 1994) and serves as 4 Prior to the establishment of NAESB in 2001, an industry forum for the development the Commission’s development of business practice 7 See Standards for Bus. Practices & Commc’n of business practice standards and standards for the wholesale electric industry was Protocols for Pub. Utils., Notice of Proposed communication protocols for the aided by two ad hoc industry working groups Rulemaking, 84 FR 24050 (May 16, 2019), 167 FERC established during the rulemaking proceeding that ¶ 61,127 (2019) (WEQ Version 003.2 NOPR). wholesale and retail natural gas and resulted in issuance of Order No. 889 and the 8 WEQ Version 003.2 NOPR, 167 FERC ¶ 61,127 electricity industry sectors. Since 1995, creation of the OASIS, while GISB’s efforts involved at P 12. See also Standards for Bus. Practices & NAESB’s predecessor GISB and the development of business practice standards for Commc’n Protocols for Pub. Utils., Notice of subsequently NAESB itself have been the wholesale natural gas industry. Once formally Proposed Rulemaking, 81 FR 49580 (Jul. 28, 2016), established, NAESB took over the standards 156 FERC ¶ 61,055, at P 42 (2016) (WEQ Version accredited members of the American development previously handled by GISB and by 003.1 NOPR). the electric working groups. 9 NAESB filed the WEQ Version 003.1 Standards 2 Standards for Bus. Practices & Commc’n 5 The retail gas quadrant and the retail electric on October 26, 2015 (October 2015 Filing). See, e.g., Protocols for Pub. Utils., Order No. 676–I, 85 FR quadrant were combined into the retail markets WEQ Version 003.1 NOPR, 156 FERC ¶ 61,055. 10,571 (Feb. 25, 2020), 170 FERC ¶ 61,062 (2020). quadrant. NAESB continues to refer to these 10 The following WEQ–023 Modeling Business 3 The OASIS suite of standards are the WEQ–001 working groups as ‘‘quadrants’’ even though there Practice Standards were incorporated by reference OASIS Business Practice Standards, the WEQ–002 are now only three quadrants. in Order No. 676–I: WEQ–023–5; WEQ–023–5.1; OASIS Standards and Communication Protocols 6 See Docket No. RM05–5–027, Report of the WEQ–023–5.1.1; WEQ–023–5.1.2; WEQ–023– Business Practice Standards, the WEQ–003 OASIS North American Energy Standards Board on 5.1.2.1; WEQ–023–5.1.2.2; WEQ–023–5.1.2.3; Data Dictionary Business Practice Standards, and Wholesale Electric Quadrant Business Practice WEQ–023–5.1.3; WEQ–023–5.2; WEQ–023–6; the WEQ–013 OASIS Implementation Guide Standards Version 003.2 under RM05–5 (Dec. 8, WEQ–023–6.1; WEQ–023–6.1.1; WEQ–023–6.1.2; Business Practice Standards. 2017) (NAESB WEQ Version 003.2 Report). and WEQ–023–A Appendix A.
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reference NAESB’s latest version of the Version 003.3 Standards include and the standards are designed to WEQ–006 Manual Time Error additions and revisions to support new improve upon the congestion Correction Business Practice Standards. OASIS functionality that will allow for management procedures for the Eastern the posting of third party offers of Interconnection through the use of real- B. Summary of NAESB WEQ Version planning redispatch services (WEQ– time data in calculations for 003.3 001–13.2) as well as providing transmission loading relief obligations. 9. On March 30, 2020, NAESB filed additional information regarding the 15. Moreover, as part of the standards the WEQ Version 003.3 Standards.11 curtailment of firm transmission service development process, NAESB made five The WEQ Version 003.3 Standards build (WEQ–001–28) prescribed in the OASIS additional revisions to the OASIS suite upon the standards included in the suite of standards.16 In response to of standards that were not made in WEQ Version 003.2 Standards. After Order No. 676–I, NAESB also revised response to Commission orders.22 First, consideration of the March 30 Filing, the standards as necessary to conform NAESB modified the OASIS suite of the Commission issued the WEQ with the Commission’s Dynegy policy, standards to improve OASIS query Version 003.3 NOPR on July 16, 2020, and stated that any standards from these functionalities. Second, NAESB wherein the Commission proposed to efforts will be incorporated into future modified the OASIS suite of standards incorporate the WEQ Version 003.3 versions of the WEQ Business Practice for new OASIS functionality to fully Standards, with certain enumerated Standards.17 document all encumbrances to 12 exceptions. 13. The WEQ Version 003.3 Standards unconditional firm transmission service, 10. NAESB’s WEQ Version 003.3 also include changes that were made to such as untagged pseudo-ties. Third, Standards include newly created support consistency with the North NAESB modified the OASIS suite of standards as well as modifications to American Electric Reliability standards to expand notice functionality existing standards developed through Corporation (NERC) Reliability and establish standards for providing the NAESB Business Practice Standards Standards, including NERC’s retirement dynamic notification to transmission development or minor correction of the NERC Interchange Scheduling customers of the renewal deadline for 13 processes. The WEQ Version 003.3 and Coordination Reliability Standards rollover rights for point-to-point Standards also include additions and and retirement of the NERC Modeling, transmission service. Fourth, NAESB revisions to the NAESB WEQ–023 Data, and Analysis Reliability modified WEQ–001 OASIS Business Modeling Business Practice Standards, Standards. NAESB coordinated with Practice Standards for use of Next Hour which the Commission addresses NERC to make modifications and Market Service and the 0–NX herein. revisions pertaining to electronic transmission product codes. Fifth, 11. The WEQ Version 003.3 Standards 18 tagging (e-Tagging), and to the NAESB modified the OASIS suite of include revisions related to the surety 19 calculation of ATC and AFC. standards to modify Network Integration assessment on cybersecurity performed 14. The WEQ Version 003.3 Standards Transmission Service (NITS) by Sandia. NAESB responded to a U.S. also include additions, revisions, and requirements. Finally, NAESB revised Department of Energy (DOE) request reservations made to the WEQ–008 the OASIS suite of standards to make that NAESB act on an expedited basis to Transmission Load Relief (TLR)— three minor corrections.23 ensure the WEQ cybersecurity standards Eastern Interconnection Business 16. The WEQ Version 003.3 Standards developed in response to the surety Practice Standards, which NAESB include the WEQ–023 Modeling assessment were included in the WEQ advises completes the standards Business Practice Standards that Version 003.3 Standards.14 NAESB development effort for the Parallel Flow provide technical details concerning the reports that the changes strengthen the Visualization (PFV) enhanced calculation of ATC for wholesale practices and cybersecurity protections congestion management process (PFV electric transmission services. The established within the standards by 20 Standards). The PFV Standards are the WEQ–023 Modeling Business Practice aligning security requirements with culmination of a multi-year Standards address aspects of certain of other cybersecurity guidelines, coordination effort between NAESB, the NERC MOD A Reliability Standards mitigating potential vulnerabilities, and NERC, and the Eastern Interconnect relating to modeling, data and analysis incorporating more secure 21 Data Sharing Network (EIDSN), Inc., that are included in the NERC’s communication and encryption proposed retirement of its MOD A methodologies. 16 NAESB WEQ Version 003.3 Report, Transmittal Reliability Standards. 12. In support of directives contained at 4. WEQ–001–13.2 adds new Third Party Offers in Order No. 890,15 NAESB also revised for Planning Redispatch Services Business Practice Standards to allow for posting of third-party offers II. Discussion the OASIS suite of standards. The WEQ of planning redispatch services. WEQ–001–28 adds A. Overview new Curtailment Posting Requirements Business 11 See NAESB WEQ Version 003.3 Report (filed Practice Standards for the posting of additional 17. NAESB’s WEQ Version 003.3 March 30, 2020). information on OASIS regarding firm transmission Standards, which we are incorporating 12 curtailments. Standards for Bus. Practices & Commc’n by reference in this final rule, include Protocols for Pub. Utils., 85 FR 55201 (Sept. 4, 17 In Dynegy Power Marketing, Inc, 99 FERC 2020) 172 FERC ¶ 61,047 (2020) (WEQ Version ¶ 61,054 (2002) (Dynegy), the Commission modifications, reservations, and/or 003.3 NOPR). established its policy on a customer’s right to keep 13 See NAESB WEQ Version 003.3 Report, its contractual rights to point-to-point firm Transmission Owners, and Balancing Authorities, Transmittal at 1–2. transmission service on the original path it has EIDSN, Inc. manages the Electric Information 14 Id. at 3–4. reserved while the customer’s request for a redirect Network (EInet), a data-sharing network for its is pending. 15 Preventing Undue Discrimination & Preference members to promote the reliable and efficient 18 in Transmission Serv., Order No. 890, 72 FR 12266 With respect to e-Tagging, NAESB also operation of the Eastern and Quebec (Mar. 15, 2007), 118 FERC ¶ 61,119, order on reh’g, modified the WEQ–004 Coordinate Interchange Interconnections. See EIDSN, Inc., Our Mission, at Order No. 890–A, 73 FR 2984 (Jan. 16, 2008), 121 Business Practice Standards’ Commercial Timing https://eidsn.org/. FERC ¶ 61,297 (2007), order on reh’g, Order No. Tables to clarify commercial timing requirements. 22 NAESB WEQ Version 003.3 Report, Transmittal 890–B, 123 FERC ¶ 61,299 (2008), order on reh’g, 19 NAESB WEQ Version 003.3 Report, Transmittal at 5. Order No. 890–C, 74 FERC 12540 (Mar. 25 2009), at 4. 23 Minor corrections were made to the WEQ–001 126 FERC ¶ 61,228, order on clarification, Order 20 Id. OASIS Business Practice Standards and the WEQ– No. 890–D, 74 FR 61511 (Nov. 25, 2009), 129 FERC 21 Comprised of North American Reliability 003 OASIS Data Dictionary Business Practice ¶ 61,126 (2009). Coordinators, Transmission Operators, Standards.
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additions to the following set of existing possible support. In section 12(d) of the Standards. NAESB’s changes to the standards: 24 National Technology Transfer and standards included modifications to Advancement Act of 1995, Congress existing templates and the creation of WEQ Business practice standards affirmatively requires federal agencies to two new templates to provide the use technical standards developed by mechanism for transmission providers 000 ...... Abbreviations, Acronyms, and voluntary consensus standards to post the required additional Definition of Terms. 001 ...... Open Access Same-Time In- organizations, like NAESB, to carry out information regarding the curtailment of 26 formation System (OASIS). policy objectives or activities. firm transmission service, including the curtailment of non-firm transmission 002 ...... OASIS Standards and Com- B. Issues Raised by Commenters munication Protocols service that preceded any firm (S&CP). 20. Comments in response to the WEQ transmission curtailments. 003 ...... OASIS S&CP Data Diction- Version 003.3 NOPR were filed by four 22. The information needed to meet aries. commenters. Commenters expressed the posting requirements is contained in 004 ...... Coordinate Interchange. general support for the Commission’s two separate tools: The Interchange 008 ...... Transmission Loading Relief proposals,27 and no comments opposed Distribution Calculator (IDC) tool for the (TLR)—Eastern Inter- the basic direction of the NOPR, Eastern Interconnection, managed by connection Business Prac- although some commenters took issue tice Standards. EIDSN, Inc., and the Enhanced 013 ...... OASIS Implementation Guide. with specific details of the NOPR Curtailment Calculator (ECC) tool for 023 ...... Modeling. proposal. Specifically, commenters the Western Interconnection, managed raised discrete concerns regarding the by the California Independent System 18. The specific NAESB standards WEQ–023 Business Practice Standards Operator. Although both the IDC and that we are incorporating by reference in and the Commission’s proposed ECC tools produce information to be this final rule establish a set of business regulatory text regarding non- posted to OASIS in accordance with the practice standards and communication discriminatory ATC calculations. standards, NAESB states that its protocols for the electric industry that Commenters also commented on members determined that the need for a will continue to enable industry whether the Commission should require mechanism to transfer data from the members to achieve efficiencies by industry to implement WEQ Version tools to OASIS should be addressed as streamlining utility business and 003.2 prior to WEQ Version 003.3, or part of any industry implementation transactional processes and instead should cancel the rather than through standards communication procedures. All of these implementation obligation of WEQ modifications. standards, except for portions of the Version 003.2 and require WEQ–023 Modeling Business Practice implementation of all accepted WEQ b. Comments Standards, update and replace standards Version 003.3 Business Practice 23. The ISO/RTO Council states that that the Commission previously Standards (including WEQ 003.2 it supports an automated mechanism to incorporated by reference in Order No. changes) within 18 months. We will transfer data from the IDC/ECC tools to 676–I. incorporate by reference into the the firm transmission curtailment 19. As the Commission has explained Commission’s regulations all of the templates.29 The ISO/RTO Council in prior orders, NAESB approved the WEQ Version 003.3 Standards and states that it currently is unclear standards under its consensus amend the regulatory text at whether firm curtailment information procedures.25 Adoption of consensus § 37.6(b)(2)(i) as described below. We must be posted manually prior to the standards is appropriate because the will separately discuss each of the implementation of an automated data consensus process helps ensure the issues raised by commenters. transfer mechanism.30 The ISO/RTO reasonableness of the standards by 1. Changes to OASIS Council contends that manually requiring that the standards draw populating firm curtailment data into support from a broad spectrum of all a. Background the templates is administratively segments of the industry. Moreover, 21. Order No. 890 requires burdensome and introduces the since the industry itself must conduct transmission providers to post to OASIS potential for human (data entry) error, business under these standards, the ‘‘all circumstances and events and automated data transfer results in a Commission’s regulations should reflect contributing to the need for a firm more reliable, accurate and equitable those standards that have the widest service curtailment, specific services posting process.31 The ISO/RTO and customers curtailed (including the Council requests that the Commission 24 See NAESB WEQ Version 003.3 Report, transmission provider’s own retail clarify that manual postings will not be Transmittal at 3. 25 loads), and the duration of the required as an interim means to achieve Standards for Business Practices and 28 Communication Protocols for Public Utilities, Order curtailment.’’ As the Commission compliance while the automated data No. 676–H, 79 FR 56939 (Sept. 24, 2015), 148 FERC explained in the NOPR, NAESB made transfer mechanism is being developed ¶ 61,205, at P 21, n.27 (2014). (‘‘WEQ’s procedures additional modifications to the OASIS per the implementation schedule for the ensure that all industry members can have input suite of standards, as well as WEQ Version 003.3 Standards. into the development of a business practice consistency changes to WEQ–000 standard, whether or not they are members of c. Commission Determination NAESB, and each standard it adopts is supported Abbreviations, Acronyms, and by a consensus of the seven industry segments: Definition of Terms Business Practice 24. Because of the importance of Transmission, generation, marketer/brokers, posting information regarding firm distribution/load serving entities, end users, independent grid operators/planners, and 26 Public Law 104–113, 12(d), 110 Stat. 775 curtailments, we will not delay technology services. Under the WEQ process, for a (1996), 15 U.S.C. 272 note (1997). implementation while industry standard to be approved, it must receive a super- 27 The ISO/RTO Council specifically endorsed the develops a more automated data transfer majority vote of 67 percent of the members of the WEQ Version 003.3 NOPR proposal to incorporate mechanism. NAESB states that its WEQ’s Executive Committee with support from at by reference business practice standards necessary least 40 percent of each of the seven industry to effectuate the PFV enhanced congestion segments. For final approval, 67 percent of the management process. ISO/RTO Council Comments 29 ISO/RTO Council Comments at 13. WEQ’s general membership must ratify the at 2, 4–5. 30 Id. standards.’’). 28 Order No. 890, 118 FERC ¶ 61,119 at P 1627. 31 Id.
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members determined that the need for a curtailments, or economic dispatches, a NAESB subcommittee with the mechanism to transfer data from the are then performed to ensure that path necessary expertise to address the tools to OASIS should be addressed as limits are not exceeded. Bonneville relevant technical issues. Although part of any industry implementation further states that this practice allows it WEQ–023–1.4 and 1.4.1 Business rather than as part of the standards to maximize transmission utilization Practice Standards were not in NERC’s modifications. While we encourage the including the integration of variable MOD A Reliability Standards, they were industry to develop automated tools as resources scheduled within the hour, proposed to help address differences in quickly as possible, we agree that this and that these requirements, if how contract paths are treated that effort should be independent from the incorporated by reference as drafted, would have existed among the three development and implementation of the would restrict energy supply and methods for calculating ATC: Rated standards. transmission availability.33 System Path Methodology, Area 27. Bonneville contends that its 2. Incorporation of WEQ–023 Standards Interchange Methodology, and Flowgate concerns with Business Practice 1.4 and 1.4.1 Methodology. Declining to adopt these Standards WEQ–023–1.4 and 1.4.1 are standards at this point could potentially a. Background particularly relevant in light of the loosen the requirements for non- 25. The WEQ–023 Business Practice recent heat wave events of August and discriminatory calculation of ATC and Standards include two new standards September 2020 in California. may require changes to specific related to contract path management not Bonneville asserts that eliminating the standards regarding particular contract previously included in the NERC MOD practice of over-scheduling until the paths. Given the deliberately broad A Reliability Standards. These two final twenty minutes prior to flow on nature of these standards, the record Business Practice Standards, WEQ–023– transmission facilities such as the does not show that current business 1.4 and WEQ–023–1.4.1, limit the California-Oregon Intertie could practices, such as a response to a amount of firm transmission service artificially restrict energy supply and sudden de-rate or outage referenced by granted on an ATC Path and limit the transmission availability.34 the ISO/RTO Council, would interchange schedule (both firm and 28. The ISO/RTO Council joins necessarily be considered a violation of non-firm) between balancing authority Bonneville in opposing WEQ–023–1.4 the standards. areas to the contract path limit for that and 1.4.1 Business Practice Standards, 31. Moreover, a consensus of the given path, respectively.32 stating that requiring transmission industry approved these standards with service providers to assume all firm Bonneville, MISO and ISO–NE voting in b. Comments transmission service reservations will be favor at the WEQ stakeholders meeting, 26. Bonneville Power Administration used in full, without accounting for the while no ISO/RTO and only one utility (Bonneville) and the ISO/RTO Council transmission customer’s scheduling voted in opposition. In reviewing these ask the Commission to decline to activity, ‘‘will undoubtedly result in less standards, the Commission relies incorporate by reference these efficient use of the transmission heavily on the consensus expertise of Standards. Bonneville asserts that the system.’’ The ISO/RTO Council also the NAESB membership.37 Concerns WEQ–023–1.4 and WEQ–023–1.4.1 expresses concern that under system with the NAESB Business Practice Business Practice Standards need conditions which include the sudden, Standards therefore should be raised further refinement by the industry unexpected outage or de-rate of a within the NAESB process, and the before they are ready for incorporation transmission facility associated with an industry should seek to resolve any by reference, if at all. Bonneville states ATC path, there may not be sufficient issues therein and, if they cannot, the that these Standards appear to be time to adjust posted ATC or modify the parties need to provide a factual record inconsistent with how Bonneville and current interchange, which could lead for the Commission to consider the other transmission service providers to a violation of the requirement.35 issue.38 and system operators in the Western 29. The ISO/RTO Council notes that 32. Bonneville and the ISO/RTO Interconnection operate their systems. WEQ–023–1.4 and 1.4.1 Business Council have raised concerns with Bonneville explains that, for itself and Practice Standards were initially whether implementation of these others, an ATC Path is allowed to be rejected by the NAESB Business standards in all cases will result in a overscheduled up to twenty minutes Practices Subcommittee, and that the loss of scheduling flexibility without the prior to flow, at which point ISO/RTO Council and other entities, risk of overscheduling. We therefore interruptions of non-firm service, including PJM Interconnection LLC, remind these parties that, as further Midcontinent Independent System discussed in P 41, we remain open to 32 WEQ–023 1.4 states, ‘‘[e]ach Transmission Operator, Inc., Southwest Power Pool, examining requests for waivers of these Service Provider shall not grant a request for Firm Electric Reliability Council Of Texas, Transmission Service on an ATC Path that serves standards when utilities make as an interface with another BAA if the net of the Inc., and the Independent Electricity compliance filings.39 Such requests Firm Transmission Service transactions into and System Operator of Ontario, raised out of the Transmission Service Provider’s BAA 36 concerns that remain unresolved. 37 would exceed the sum of the Facility Ratings of Tie Standards for Business Practices of Interstate Facilities, to which Transmission Service Providers c. Commission Determination Natural Gas Pipelines; Order No. 587, 61 FR 39,053, mutually agree they have the right to use Tie 39057 (July 26, 1996), FERC Stats. & Regs. ¶ 31,038, Facilities that comprise the ATC Path, between the 30. We incorporate by reference all of at 30.059 (1996) (cross-referenced at 76 FERC two BAAs.’’ the WEQ–023 Modeling Business ¶ 61042) (‘‘Since it is the industry that must operate under these standards, deferring to the considered WEQ–023 1.4.1 states, ‘‘[e]ach Transmission Practice Standards. The WEQ–023 Service Provider shall limit the Interchange judgment of the consensus of the industry is both Schedule (both Firm and non-Firm) of the Business Practice Standards were filed reasonable and appropriate.’’). reservations on an ATC path into and out of in October 2015 and were the product 38 See Standards for Bus. Practices of Interstate Transmission Service Provider’s BAA on an of an extensive development process by Nat. Gas Pipelines, Order No. 587–G, 63 FR 20072, interface with another BAA such that the Net 20076–80 (Apr. 23, 1998), FERC Stats. & Regs. ¶ 31,062, at 30,668–74 (1998) (cross-referenced at 83 Interchange Schedule does not exceed the sum of 33 the Facility Ratings of Tie Facilities, to which Bonneville Comments at 4. FERC ¶ 61,029) (Commission resolved issue on Transmission Service Providers mutually agree they 34 Id. at 5. which NAESB’s predecessor, the Gas Industry have the right to use the Tie Facilities that comprise 35 ISO/RTO Council Comments at 9. Standards Board, could not reach consensus). the ATC Path, between the two BAAs. 36 Id. 39 Order No. 676–H, 148 FERC ¶ 61,205 at P 80.
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should explain why the filing parties 34. The NOPR explained that ‘‘this calculation of ATC and AFC, stating that believe their current practices violate proposed regulation, in conjunction the WEQ–023 Modeling Business the standards and why their practices with the WEQ–023 Modeling Business Practice Standards ‘‘were extensively should be considered equal or superior Practice Standards, will help ensure that vetted through NAESB’s industry-wide to the standards in preventing all transmission customers will be standards development process where overscheduling while providing for treated fairly when seeking alternative any comments received regarding the more flexibility or other benefits in power supplies, and will provide for lesser degree of detail in the standards scheduling. We urge NAESB to consider comparable and not unduly were successfully addressed prior to the issues raised by Bonneville and the discriminatory or preferential treatment NAESB ratification.’’ 46 The ISO/RTO ISO/RTO Council and whether revisions of native load customers and Council contends that the WEQ–023 42 to these standards are warranted. The transmission service customers.’’ The Modeling Business Practice Standards Commission also is mindful of the Commission also sought comment on ensure non-discriminatory practices and whether it should develop new consideration of the potential benefits of limit transmission provider discretion regulations outside of the NAESB maximizing the use of transmission by requiring each transmission service when appropriate, without standards development process ‘‘to maintain the current level of detail provider to publish its ATC calculation compromising reliability, and methodology, and to describe its maintaining flexibility to maximize related to ATC calculations; if so, what methodology in its ATC implementation transmission utilization as conditions level of detail those regulations should document such that, given the same change, and has scheduled a workshop have.’’ 43 information used by the transmission that may consider these issues.40 b. Comments service provider, the ATC calculations 3. Changes to the Regulatory Text 35. Four commenters oppose the are reproducible and can be validated.47 a. Background Commission’s proposed changes to the 37. Similarly, Open Access regulatory text. No commenters filed in Technology International, Inc. (OATI) 33. The Commission sought comment support of the proposal. Bonneville and on proposed additional regulatory text maintains that the NAESB standards the Edison Electric Institute (EEI) assert development process is the best way to in 18 CFR 37.6 (information to be posted that the Commission’s proposed draft standards through an open, on the OASIS) stating that transmission language is unnecessary. Bonneville transparent, and industry participant provider ATC calculations must be further asserts that the regulatory transparent, consistent, and not unduly changes circumvent the NAESB process driven process. It states that standards discriminatory or preferential. sanctioned by the Commission for the developed through this process would Specifically, the Commission proposed development of standards, and that the help the Commission avoid the to make the revisions indicated below to Commission’s regulations are not the imposition of unintentional and the regulatory text in 18 CFR appropriate place to address technical unnecessary regulatory changes.48 All 37.6(b)(2)(i): details involving the calculation of ATC four commenters agree that, if the Information used to calculate any and TTC. In particular, Bonneville Commission determines that the WEQ– posting of ATC and TTC must be dated maintains that the Commission’s 023 Modeling Business Practice and time-stamped and all calculations proposed language includes ambiguous Standards are insufficient, it should shall be performed according to references to technical concepts such as encourage NAESB to provide additional consistently applied methodologies ‘‘factors derived from operations and details and specific standards to address referenced in the Transmission planning data’’ in the calculation of those shortcomings. Provider’s transmission tariff and shall ATC and TTC.44 EEI contends that be based on Commission-approved revisions should occur through c. Commission Determination [Reliability Standards,] business NAESB’s standard development 38. We adopt the NOPR proposal, practice and electronic communication process, and that the directives in Order with certain revisions. We recognize standards, and related implementation No. 890 and related provisions in the that commenters oppose adding these documents, as well as current industry pro forma OATT are sufficient to ensure criteria to the Commission’s regulations, that ATC calculation is consistent and practices, standards and criteria. but after consideration of their Transmission Providers shall calculate non-discriminatory. EEI also notes that arguments we continue to believe that ATC and TTC in coordination with and in Order No. 890, the Commission revisions to the Commission’s consistent with capability and usage on acknowledged its reliance on NAESB for regulations are necessary to ensure that neighboring systems, calculate system the development of business practice capability using factors derived from standards.45 transmission provider ATC calculations operations and planning data for the 36. The ISO/RTO Council disagrees are transparent, consistent with time frame for which data are being with the concerns expressed in the anticipated system conditions and posted (including anticipated outages), NOPR about the opportunity for outages for the relevant timeframe, and and update ATC and TTC calculations discriminatory practices and not unduly discriminatory or as inputs change. Such calculations transmission provider discretion in the preferential. However, in response to shall be conducted in a manner that is concerns raised in comments, we will transparent, consistent, and not unduly 42 WEQ Version 003.3 NOPR, 172 FERC ¶ 61,047 not include detailed technical criteria in 41 at P 49 (citing Mandatory Reliability Standards for the regulations, but we will instead discriminatory or preferential. the Calculation of Available Transfer Capability, Capacity Benefit Margins, Transmission Reliability include the fundamentals of Order No. 40 Electric Transmission Incentives Policy Under Margins, Total Transfer Capability, & Existing 890 requirements for calculating ATC, Section 219 of the Federal Power Act, Notice of Transmission Commitments & Mandatory which is consistent with what the Workshop, RM20–10–000 & AD19–19–000 (Apr. 15, Reliability Standards for the Bulk-Power Sys., Order Commission proposed in the NOPR. The 2021). The workshop is scheduled for September No. 729, 74 FR 64884 (Dec. 8, 2009), 129 FERC 10, 2021. ¶ 61,155, at P 2 (2009)). 41 Additions to the regulatory text are indicated 43 Id. 46 ISO/RTO Council Comments at 7. by italics. Deletions from the regulatory text are 44 Bonneville Comments at 3. 47 Id. at 7–8. indicated by [brackets.] 45 EEI Comments at 3. 48 OATI Comments at 5.
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regulatory text will read as shown the WEQ Version 003.3 Standards, and 2. Comments below.49 renewal of existing waivers previously 44. Bonneville, EEI and OATI states Information used to calculate any posting granted by the Commission. The ISO/ RTO Council requests a similar the WEQ Version 003.2 Standards and of ATC and TTC must be dated and time- the WEQ Version 003.3 Standards stamped and all calculations shall be clarification be included in the final performed according to consistently applied rule for this proceeding.51 should have distinct, sequential methodologies referenced in the implementation timelines that are Transmission Provider’s transmission tariff 2. Commission Determination separate and do not overlap.54 and shall be based on Commission-approved 42. Public utilities may seek waiver of Bonneville states work is underway [Reliability Standards,] business practice and the standards for newly developed or within the industry to implement the electronic communication standards, and newly revised standards and for the WEQ Version 003.2 Standards which related implementation documents, as well should not be interrupted due to the as current industry practices, standards and renewal of existing waivers. Our policy on when these waivers will be granted Commission’s adoption of the WEQ criteria. Such calculations shall be conducted Version 003.3 Standards.55 EEI states in a manner that is transparent, consistent or denied is not being changed in this with anticipated system conditions and final rule. The Commission has the implementation of the different outages for the relevant timeframe, and not previously stated that if a public utility versions simultaneously are not unduly discriminatory or preferential. asserts that its circumstances warrant a necessarily simple upgrades, and OASIS continued waiver of the regulations, the updates, training and testing are 39. The revised regulatory text required for successful properly references the WEQ Business public utility may file a request for a implementation.56 OATI states separate Practice Standards in place of the NERC waiver wherein the public utility can detail the circumstances that it believes implementation schedules will prevent Mod A Reliability Standards that have 57 52 wasted industry effort and cost. been proposed for retirement. It also warrant a waiver. In its request for includes in the regulation Order No. continued waiver, the public utility 45. OATI states that the Commission’s 890’s fundamental requirement that must include the date, docket number, proposed 18 month implementation transmission provider ATC calculations and explanation for why the waiver was period for the WEQ Version 003.3 must be transparent, consistent with initially granted by the Commission. Standards should begin after the anticipated system conditions and The Commission will decide on any implementation period for WEQ Version 58 outages for the relevant timeframe, and such waiver request on a case-by-case 003.2 Standards ends. Bonneville, not unduly discriminatory or basis, and absent a Commission- however, recommends a shorter preferential, but without introducing approved waiver, compliance with the implementation period of at least 12 specific technical concepts that may be standards is required by all public months, also starting no sooner than the subject to differing interpretations.50 We utilities. final compliance deadline for the WEQ Version 003.2 Standards.59 The ISO/ adopt this regulatory text because it has B. Implementation the advantage of removing the most RTO Council also supports an objectionable language opposed by 1. NOPR Proposal implementation date in October 2022 for the WEQ Version 3.3 Standards and commenters while including the 43. In the WEQ Version 003.3 NOPR, recommends that the Commission fundamental requirements in Order No. the Commission proposed to implement provide public utilities with the option 890, including that the determination of the WEQ Version 003.3 Standards, other of implementing the WEQ Version 003.2 ATC must not be unduly discriminatory than those related to cybersecurity, Standards either: (a) In October 2021 or preferential. under an 18-month implementation under the current implementation 40. Commenters do not indicate a timeline. The Commission requested timeline for the WEQ Version 003.2 need at this time for additional ATC comments on how best to proceed with Standards and prior to WEQ Version standards or for the Commission to the implementation of the remaining 003.3 Standards; or (b) in October 2022 develop further regulations outside of WEQ 003.3 Standards, including the simultaneously with the WEQ Version the NAESB standards development standards related to PFV and those 003.3 Standards.60 The ISO/RTO process. The industry, through the related to OASIS. Specifically, the Council states that the Commission NAESB process, should continue to Commission requested comments on should also permit parties to submit a consider further refinements to these whether the Commission should require single compliance filing and intended standards to improve the accuracy of the industry to implement WEQ Version implementation schedule for both WEQ these calculations. 003.2 prior to WEQ Version 003.3, or, Version 003.2 Standards and WEQ alternatively, cancel the implementation III. Waiver Requests and Version 003.3 Standards.61 Implementation Issues obligation of WEQ Version 003.2 and instead require implementation of all 46. The ISO/RTO Council also A. Waiver Requests accepted WEQ Version 003.3 Standards, requests that the PFV Standards be implemented on an expedited timeline 1. Comments including the WEQ Version 003.2 Standards, within 18 months.53 similar to the timeframe for the WEQ 41. The ISO/RTO Council asks the cybersecurity standards that is separate Commission to continue to acknowledge 51 ISO/RTO Council Comments at 13–14. from the rest of the proposed in its final rule that, consistent with 52 See Standards for Business Practices and modifications in the WEQ Version 003.3 Commission precedent and currently- Communication Protocols for Public Utilities, Order effective policy, each public utility may No. 676–E, 74 FERC 63288 (Dec. 3, 2009), 129 FERC 54 Bonneville Comments at 5; EEI Comments at 2– seek as part of its compliance filing ¶ 61,162, at P 107 (2009). 3, 6; OATI Comments at 2. waiver of new or revised standards in 53 This would include all WEQ Version 003.3 55 Bonneville Comments at 5. Standards except for the WEQ cybersecurity 56 EEI Comments at 6. standards which have an earlier implementation 57 OATI Comments at 3. 49 Additions to the current regulatory text at 18 timeline, as discussed in the NOPR, as well as the 58 CFR 37.6(b)(2)(i) are indicated by italics. Deletions implementation of the NAESB ATC-related Id. at 4. to the regulatory text are indicated by [brackets.] standards contained in WEQ–023, which will be 59 Bonneville Comments at 5. 50 See, e.g., Order No. 890, 118 FERC ¶ 61,119 at coordinated with the retirement of the NERC MOD 60 ISO/RTO Council Comments at 3. P 2. A Reliability Standards. 61 Id. at 11–12.
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Standards.62 The ISO/RTO Council commenters’ explanations as to the time adopt the ISO/RTO Council’s proposal states that the PFV Standards’ enhanced needed and complexities involved to to require both the WEQ Version 003.2 congestion process will more accurately plan and complete the tasks associated Standards and the WEQ Version 003.3 account for internal flows (i.e., network in implementing the WEQ Version 003.2 Standards to be incorporated using the and native load calculations) by Standards, we will not require the two same timeline, with both due to be incorporating the use of real-time data implementation timelines for the WEQ implemented by October 2022. Delaying into relief obligations calculated by the Version 003.2 Standards and the WEQ the current implementation timeline for IDC. Version 003.3 Standards to run the WEQ Version 003.2 Standards could 47. Moreover, the ISO/RTO Council concurrently. Accordingly, public result in additional industry effort and requests that the Commission ensure utilities will continue to implement the complicate implementation of the WEQ that the implementation timeline changes incorporated by reference in Version 003.3 Standards. account for any external dependencies Order No. 676–I, for the WEQ Version 49. As noted above, for the revisions and system changes beyond a public 003.2 Standards, under the current related to the surety assessment on utility’s control but necessary for a implementation timeline ending cybersecurity performed by Sandia, public utility’s implementation and October 2021.67 For the WEQ Version which were included in the WEQ compliance with the WEQ Version 003.3 Standards incorporated by Version 003.3 Standards,70 we will 003.3 Standards.63 For example, reference in this final rule,68 we require industry filers to submit Bonneville and the ISO/RTO Council conclude that a 15-month compliance filings for these revised reference new requirements for posting implementation period, beginning after WEQ cybersecurity standards nine TLR curtailment on a public utilities’ the completion of the implementation months after the publication of a final OASIS. This new TLR requirement timeline for the WEQ Version 003.2 rule in this proceeding, with necessitates certain changes to and/or Standards, is sufficient for implementation required no sooner than information sourced from the implementation of the WEQ Version three months after compliance filings Interchange Distribution Calculator/ 003.3 Standards..69 As a result, public are submitted to the Commission, for a Enhanced Curtailment Calculator (IDC/ utilities will submit two compliance total implementation period of at least ECC) tools 64 in order to coordinate with filings: the compliance filing for the 12 months from the issuance of this the OASIS system enhancements.65 WEQ Version 003.2 Standards will final rule. Moreover, we agree with the With respect to the modification of remain due July 27, 2021, with ISO/RTO Council request that the PFV WEQ–001 addressing the OASIS implementation no earlier than October Standards be implemented on the same curtailment postings, which requires 27, 2021, and the compliance filing for expedited timeline provided for the data from the ECC tool to meet the the WEQ Version 003.3 Standards, WEQ cybersecurity standards, that is, posting requirements, Bonneville states which we incorporate by reference in separate and apart from the the implementation timeline should be this final rule, will be due 12 months implementation of the rest of the at least six months from the time that a after implementation of the WEQ proposed modifications in the WEQ mechanism is made available to access Version 003.2 Standards, or no earlier Version 003.3 Standards. As a result, we data from the ECC.66 than October 27, 2022. Again, the will require industry filers to also Commission will determine an submit compliance filings for the PFV 3. Commission Determination implementation date for the WEQ Standards, nine months after the 48. The Commission recognized in the Version 003.3 Standards following the publication of this final rule, with WEQ Version 003.3 NOPR the potential acceptance of the compliance filings, no implementation required no sooner than for confusion through implementation earlier than three months following three months after compliance filings of Version 003.3 either immediately their submission (i.e., not before January are submitted to the Commission, for a after or simultaneously with Version 27, 2023), resulting in a 15-month total implementation period of at least 003.2 implementation. In light of implementation period. We decline to twelve months.
50. SUMMARY OF COMPLIANCE FILINGS AND IMPLEMENTATION DEADLINES
Business practice standards Compliance filings due Implementation date
WEQ Version 003.3 71 ...... 12 months after implementation of the WEQ Version No earlier than 3 months following compliance filings 003.2 Standards, or no earlier than October 27, 2022. submission (no earlier than January 27, 2023). Cybersecurity ...... 9 months after publication of this final rule in the Fed- No sooner than 12 months after publication of this final eral Register. rule in Federal Register. PFV ...... 9 months after publication of this final rule in the Fed- No sooner than 12 months after publication of this final eral Register. rule in Federal Register.
62 Id. at 2, 5, 11. this extension, the deadline for public utilities 69 By providing a fifteen-month implementation 63 Id. at 12. required to make a compliance filing through e- period, we account for any external dependencies 64 Specifically, the WEQ–001–28 business Tariff is extended from May 25, 2020, up to and and system changes beyond the control of a public practice standard defines new requirements for including July 27, 2021. In its order(s) on utility but necessary for a public utility’s compliance filings, the Commission will determine posting TLR curtailment information on a public implementation and compliance with the WEQ an implementation date for all utilities, including utility’s OASIS website, and IDC changes required utilities whose tariffs incorporate each version of Version 003.3 Standards. However, if a public before a public utility may implement and comply the NAESB standards, without modification, when utility is unable to comply with the fifteen-month with the PFV Standards. the version is accepted by the Commission, no implementation timeline, it may file a request for 65 Bonneville Comments at 5–6; ISO/RTO Council sooner than three months following the submission extension of time. The Commission will consider Comments at 12. of compliance filings (i.e., October 27, 2021). See such requests on a case-by-case basis. 66 Bonneville Comments at 5–6. Notice of Extension of Time at 2, Docket No. RM05– 70 For the specific WEQ cybersecurity standards 67 5–028 (issued Apr. 3, 2020). On April 3, 2020, the Commission granted an to be implemented under this separate timeline, extension of time for public utilities to make the 68 With two exceptions for the WEQ cybersecurity please see Appendix I. compliance filings required by Order No. 676–I. By standards and PFV Standards, as described in P 49.
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51.In keeping with the prior practice standard is a voluntary consensus standards for OASIS. These standards that the Commission adopted in Order standard or a government-unique detail network architecture No. 676–H, we are requiring public standard. In this final rule, the requirements, information access utilities and those entities with Commission is incorporating by requirements, OASIS and point-to-point reciprocity tariffs to modify their open reference voluntary consensus standards interface requirements, implementation, access transmission tariffs (OATT) to adopted by NAESB’s WEQ. and NITS interface requirements. include the WEQ standards that we are 57. The WEQ–003 OASIS Data V. Incorporation by Reference incorporating by reference. In order to Dictionary Business Practice Standards comply with this final rule, public 53. The Office of the Federal Register define the data element specifications utilities and entities with reciprocity requires agencies incorporating material for OASIS. tariffs must make a compliance filing by reference in final rules to discuss, in 58. The WEQ–004 Coordinate through eTariff no later than 90 days the preamble of the final rule, the ways Interchange Business Practice Standards from the date the final rule is published that the materials it incorporates by define the commercial processes in the Federal Register, using an reference are reasonably available to necessary to facilitate interchange indeterminant effective date (12/31/ interested parties and how interested transactions via Request for Interchange 9998) for the tariff records. The parties can obtain the materials.74 The and specify the arrangements and data Commission will establish an effective regulations also require agencies to to be communicated by the entity date for the tariff changes in the order(s) summarize, in the preamble of the final responsible for authorizing the on the compliance filings no earlier than rule, the material it incorporates by implementation of such transactions five months from the date the final rule reference. The standards we are (the entities responsible for balancing is published in the Federal Register.72 incorporating by reference in this final load and generation). Should any public utility that has rule 75 can be summarized as follows: 59. The WEQ–005 Area Control Error previously been granted a waiver of the 54. The WEQ–000 Abbreviations, (ACE) Equation Special Cases Business regulations believe that its Acronyms, and Definition of Terms Practice Standards define commercial circumstances warrant a continued Business Practice Standards provide a based requirements regarding the waiver, the public utility may file a single location for all abbreviations, obligations of a balancing authority to request for a waiver wherein the public acronyms, and defined terms referenced manage the difference between utility can detail the circumstances that in the WEQ Business Practice scheduled and actual electrical it believes warrant a waiver.73 In its Standards. These standards provide generation within its control area. Each request for continued waiver, the public common nomenclature for terms within balancing authority manages its ACE in utility must include the date, docket the wholesale electric industry, thereby accordance with the NERC Reliability number of the order(s) previously reducing confusion and opportunities Standards. These standards detail granting the waiver(s), and an for misinterpretation or requirements for jointly owned utilities, explanation for why the waiver(s) was misunderstandings among industry supplemental regulation service, and initially granted by the Commission. participants. load or generation transfer by telemetry. Any waiver requests must be filed at the 55. The WEQ–001 OASIS Business 60. The WEQ–007 Inadvertent same time with the public utility’s Practice Standards define the general Interchange Payback Business Practice compliance filing or in a separate FPA and specific transaction processing Standards define the methods in which section 205 filing. requirements and related business inadvertent energy is paid back, processes required for OASIS. The mitigating the potential for financial IV. Notice of Use of Voluntary standards detail requirements related to gain through the misuse of paybacks for Consensus Standards standard terminology for transmission inadvertent interchange. Inadvertent 52. Office of Management and Budget and ancillary services, attribute values interchange is interchange that occurs Circular A–119 (section 11) (Feb. 10, defining transmission service class and when a balancing authority cannot fully 1998) provides that when a federal type, ancillary and other services balance generation and load within its agency issues or revises a regulation definitions, OASIS registration area. The standards allow for the containing a standard, the agency procedures, procurement of ancillary repayment of any imbalances through should publish a statement in the final and other services, path naming, next bilateral in-kind payback, unilateral in- rule stating whether the adopted hour market service, identical kind payback, or other methods as transmission service requests, redirects, agreed to. 71 These include all of the WEQ Version 003.3 resales, transfers, OASIS postings, 61. The WEQ–008 Transmission Standards except for the Business Practice procedures for addressing ATC or AFC Loading Relief—Eastern Interconnection Standards that address the cybersecurity and methodology questions, rollover rights, Business Practice Standards define the parallel flow visualization, as discussed in the body of this final rule. conditional curtailment option business practices for cutting 72 As we explained in Order No. 676–H, 148 reservations, auditing usage of Capacity transmission service during a TLR FERC ¶ 61,205 at n.26, to the extent a public Benefit Margin, coordination of requests event. These standards detail utility’s OASIS obligations are administered by an for service across multiple transmission requirements for the use of independent system operator (ISO) or regional systems, consolidation, preemption and interconnection-wide TLR procedures, transmission operator (RTO) and are not covered in the public utility’s OATT, the public utility will not right-of-first refusal process, and NITS interchange transaction priorities for use need to modify its OATT to include the OASIS requests. with interconnection-wide TLR standards. Such a public utility will, however, be 56. The WEQ–002 OASIS Standards procedures, and the Eastern required to comply with these standards unless and Communication Protocols Business Interconnection procedure for physical granted a waiver by the Commission. The business practice standards that we incorporate by reference Practice Standards define the technical curtailment of interchange transactions. into our regulations in this final rule govern the 62. The WEQ–011 Gas/Electric terms and conditions that public utilities must 74 1 CFR 51.5. See Incorporation by Reference, 79 Coordination Business Practice include in their OATTs and the transactions that FR 66267 (Nov. 7, 2014). Standards define communication entities enter with public utilities under these 75 WEQ–000 Version 003.1 and WEQ–006 Version OATTs must be in accordance with the 003.1 were previously approved for incorporation protocols intended to improve incorporated standards. by reference and continue to be referenced without coordination between the gas and 73 Order No. 676–E, 129 FERC ¶ 61,162 at P 107. change. electric industries in daily operational
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communications between transportation 67. The WEQ–022 EIR Business NAESB, for an annual membership cost service providers and gas-fired power Practice Standards define the business of $8,000, which entitles them to full plants. The standards include requirements for entities utilizing the participation in NAESB and enables requirements for communicating NAESB managed EIR, a wholesale them to obtain these standards at no anticipated power generation fuel for electric industry tool that serves as the additional cost.78 Non-members may the upcoming day as well as any central repository for information obtain the Individual Standards Manual operating problems that might hinder needed in the scheduling of or Booklet for $250 per manual or gas-fired power plants from receiving transmission through electronic booklet.79 Non-members also may contractual gas quantities. transactions. The standards describe the obtain the complete set of Business 63. The WEQ–012 Public Key roles within EIR, registration Practice Standards on USB flash drive Infrastructure (PKI) Business Practice requirements, and cybersecurity. for $2,000. NAESB also provides a free Standards establish the cybersecurity 68. The WEQ–023 Modeling Business electronic read-only version of the framework for parties partaking in Practice Standards specify the standards for a three-business day transactions via a transmission requirements for calculation of ATCs period or, in the case of a regulatory provider’s OASIS or e-Tagging system. and AFCs using the methodology comment period, through the end of the The NAESB PKI framework secures selected. In the event of a conflict comment period.80 In addition, NAESB wholesale electric market electronic between these Business Practice considers requests for waivers of the commercial communications via Standards and the Transmission Service charges on a case-by-case basis based on encryption of data and the electronic Provider’s tariff or FERC approved need. authentication of parties to a transaction seams agreement(s), the tariff or FERC through the use of a digital certificate approved seams agreement(s) shall have VI. Information Collection Statement issued by a NAESB certified certificate precedence.76 71. The following collection of authority. The standards define the 69. Copies of the standards information contained in this final rule requirements for parties utilizing the incorporated by reference may be is subject to review by the Office of digital certificates issued by the NAESB obtained from NAESB, whose offices are Management and Budget (OMB) under certificate authorities. located at 801 Travis Street, Suite 1675, section 3507(d) of the Paperwork 64. The WEQ–013 OASIS Houston, TX 77002, Phone: (713) 356– Reduction Act of 1995, 44 U.S.C. Implementation Guide Business Practice 0060. NAESB’s website can be accessed 3507(d).81 OMB’s regulations require Standards detail the implementation of at https://www.naesb.org. Once COVID approval of certain information the OASIS Business Practice Standards. restrictions are lifted, copies of the collection requirements imposed by The standards detail requirements standards may be inspected at the agency rules.82 Upon approval of a related to point-to-point OASIS Federal Energy Regulatory Commission, collection(s) of information, OMB will transaction processing, OASIS template Public Reference and Files Maintenance assign an OMB control number and an implementation, preemption and right- Branch, 888 First Street NE, expiration date. Respondents subject to of-first-refusal processing, NITS Washington, DC 20426, Phone: (202) the filing requirements of this rule will application and modification of service 502–8371, https://www.ferc.gov. not be penalized for failing to respond processing, and secondary network 70. NAESB is a private, consensus to these collections of information transmission service. standards developer that develops unless the collections of information 65. The WEQ–015 Measurement and voluntary wholesale and retail display a valid OMB control number. Verification of Wholesale Electricity standards related to the energy industry. 72. The Commission solicits Demand Response Business Practice The procedures utilized by NAESB comments on the Commission’s need for Standards define a common framework make its standards reasonably available this information, whether the for transparency, consistency, and to those affected by the Commission’s information will have practical utility, accountability applicable to the regulations.77 Participants can join the accuracy of the provided burden measurement and verification of estimates, ways to enhance the quality, wholesale electric market demand 76 The suites of NAESB business practice utility, and clarity of the information to response practices. The standards standards we are not incorporating by reference in be collected, and any suggested methods describe performance evaluation this final rule are: (1) The WEQ–009 Standards of for minimizing respondents’ burden, methodology and criteria for the use of Conduct for Electric Transmission Providers, which including the use of automated equipment, technology, and procedures NAESB has eliminated as they duplicate the Commission’s regulations; (2) the WEQ–010 information techniques. to quantify the demand reduction Contracts Related Business Practice Standards that 73. The following burden estimate is value—the measurement of reduced establish model contracts for the wholesale electric based on the projected costs for the electrical usage by a demand resource. industry, which the Commission has not industry to implement the new and 66. The WEQ–021 Measurement and incorporated as they are not mandatory; (3) the WEQ–014 WEQ/WGQ eTariff Related Business revised business practice standards Verification of Energy Efficiency Practice Standards, which provide an Products Business Practice Standards implementation guide describing the various Standards Manual or Booklet to finance the mechanisms, data tables, code values/reference define a common framework for organization. The parties affected by these tables, and technical specifications used in the transparency, consistency, and Commission regulations generally are highly submission of electronic tariff filings to the sophisticated and have the means to acquire the accountability applicable to the Commission, which the Commission has not information they need to effectively participate in measurement and verification of incorporated as these submittals are governed by Commission proceedings. the Commission’s eTariff regulations; and (4) the wholesale electric market energy 78 NAESB, NAESB Membership Application, efficiency practices. The standards WEQ–016, WEQ–017, WEQ–018, WEQ–019, and WEQ–020 Business Practice Standards that were https://www.naesb.org/pdf4/naesbapp.pdf. establish energy efficiency measurement developed as part of the Smart Grid implementation 79 NAESB, NAESB Materials Order Form, https:// and verification criteria and define and which the Commission adopted as non- www.naesb.org/pdf/ordrform.pdf. requirements for energy efficiency mandatory guidance in 18 CFR 2.27 (2019). See 80 Procedures for non-members to evaluate work resource providers for the measurement Order No. 676–H, 148 FERC ¶ 61,205; Order No. products before purchasing are available at https:// 676–I, 170 FERC ¶ 61,062, at n.102. www.naesb.org/misc/NAESB_Nonmember_ and verification of energy efficiency 77 As a private, consensus standards developer, Evaluation.pdf. products and services offered in the NAESB needs the funds obtained from its 81 44 U.S.C. 3507(d). wholesale electric markets. membership fees and sales of its Individual 82 5 CFR 1320.11.
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adopted by NAESB and proposed to be rule.83 The NERC Compliance Registry, approximately 162 entities in the United incorporated by reference in this final as of March 5, 2021, identifies States that are subject to this final rule.
DOCKET NOS. RM05–5–029 AND RM05–05–030
Annual number Average burden (hrs.) Total annual burden Number of of responses Total number & cost ($) hrs. & total respondents per respondent of responses per response annual cost ($)
(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5)
FERC–516E ...... 162 1 162 6 hrs.; $498 ...... 972 hrs.; $80,676. FERC–717 ...... 162 1 162 30 hrs.; $2,490 ...... 4,860 hrs.; $403,380.
Total ...... 324 $2,988 ...... 5,832 hrs.; $484,056.
Costs to Comply with Paperwork affecting ATC and AFC calculation for natural gas and electric power that Requirements: wholesale electric transmission services, requires no construction of facilities. The estimated annual costs are as with the addition of certain revisions Therefore, an environmental assessment follows: and corrections. The revisions made by is unnecessary and has not been FERC–516E: 162 entities × 1 response/ NAESB in the WEQ Version 003.3 prepared in this final rule. entity (6 hours/response × $83.00/hour) Standards are designed to aid public = $80,676. utilities with the consistent and uniform VIII. Regulatory Flexibility Act × FERC–717: 162 entities 1 response/ implementation of requirements 76. The Regulatory Flexibility Act of × entity (30 hours/response $83.00/ promulgated by the Commission as part 1980 (RFA) 86 generally requires a hour) = $403,380. of the pro forma Open Access description and analysis of final rules Titles: FERC–516E, Electric Rate Transmission Tariff. that will have significant economic Schedule and Tariff Filings and FERC– Internal review: The Commission has impact on a substantial number of small 717, Standards for Business Practices reviewed NAESB’s proposal and has entities. The RFA does not mandate any and Communication Protocols for made a preliminary determination that particular outcome in a rulemaking. It Public Utilities. the proposed revisions are both only requires consideration of Action: Final rule. necessary and useful. In addition, the alternatives that are less burdensome to OMB Control Nos: 1902–0290 (FERC– Commission has assured itself, by small entities and an agency 516E) and 1902–0173 (FERC–717). means of its internal review, that there Respondents: Business or other for explanation of why alternatives were is specific, objective support for the rejected. profit, and not for profit institutions. burden estimates associated with the Frequency of Responses: One-time. 77. The Small Business information requirements. Administration (SBA) revised its size Necessity of the Information: This 74. Interested persons may obtain standards (effective January 22, 2014) rule will amend its regulations to information on the reporting for electric utilities from a standard incorporate by reference the latest requirements by contacting the Federal based on megawatt hours to a standard version (Version 003.3) of the Standards Energy Regulatory Commission, Office based on the number of employees, for Business Practices and of the Executive Director, 888 First including affiliates. Under SBA’s Communication Protocols for Public Street NE, Washington, DC 20426 Utilities adopted by the Wholesale [Attention: Ellen Brown, email: standards, some transmission owners Electric Quadrant (WEQ) of the North [email protected], phone: (202) will fall under the following category American Energy Standards Board 502–8663]. and associated size threshold: electric (NAESB). WEQ Version 003.3 includes bulk power transmission and control, at standards developed in accordance with VII. Environmental Analysis 500 employees.87 The Commission recommendations of the Department of 75. The Commission is required to estimates that 24 of the 162 respondents Energy sponsored cybersecurity surety prepare an Environmental Assessment are small or 14.8 percent of the assessment of the NAESB Business or an Environmental Impact Statement respondents affected by this final rule. Practice Standards that was conducted for any action that may have a 78. The Commission estimates that in 2019. Additional standards were significant adverse effect on the human the impact on these entities is consistent developed in response to the directives environment.84 The Commission has with the paperwork burden of $2,988 from FERC Order No. 890, such as the categorically excluded certain actions per entity used above.88 The standards developed to support Parallel from these requirements as not having a Commission does not consider $2,988 to Flow Visualization, intended to improve significant effect on the human be a significant economic impact. Based congestion management procedures for environment.85 The actions adopted on the above, the Commission certifies the Eastern Interconnection. The WEQ here fall within categorical exclusions that implementation of the proposed Version 003.3 Standards also include, in in the Commission’s regulations for Business Practice Standards will not their entirety, the WEQ–023 Modeling rules that are clarifying, corrective, or have a significant impact on a Business Practice Standards contained procedural, for information gathering substantial number of small entities. in the WEQ Version 003.1 Standards, analysis, and dissemination, and for Accordingly, no initial regulatory which address the technical issues sales, exchange, and transportation of flexibility analysis is required.
83 Commission staff estimates that industry is 84 Regulations Implementing the Nat’l Envt’l Pol’y 86 5 U.S.C. 601–612. similarly situated in terms of hourly cost (wages Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), 87 13 CFR 121.201, Sector 22 (Utilities), NAICS plus benefits). Based on the Commission average FERC Stats. & Regs. ¶ 30,783 (1987) (cross- code 221121 (Electric Bulk Power Transmission and cost (wages plus benefits) for 2020, $83.00/hour is referenced at 41 FERC ¶ 61,284). Control). used. 85 18 CFR 380.4. 88 36 hours at $83.00/hour = $2,988.
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IX. Document Availability PART 37—OPEN ACCESS SAME–TIME in accordance with 5 U.S.C. 552(a) and 79. In addition to publishing the full INFORMATION SYSTEMS 1 CFR part 51. All approved material may be inspected at the Federal Energy text of this document in the Federal ■ Register, the Commission provides all 1. The authority citation for part 37 Regulatory Commission, Public interested persons an opportunity to continues to read as follows: Reference and Files Maintenance view and/or print the contents of this Authority: 16 U.S.C. 791–825r, 2601– Branch, 888 First Street NE, document via the internet through 2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352. Washington, DC 20426, Tel: (202) 502– 8371, www.ferc.gov, and is available FERC’s Home Page (https:// ■ 2. Amend § 37.6 by revising paragraph from the sources listed in paragraph www.ferc.gov). At this time, the (b)(2)(i) to read as follows: Commission has suspended access to (b)(2) of this section. It is also available the Commission’s Public Reference § 37.6 Information to be posted on the for inspection at the National Archives Room due to the President’s March 13, OASIS. and Records Administration (NARA). 2020 proclamation declaring a National * * * * * For information on the availability of Emergency concerning the Novel (b) * * * this material at NARA, email Coronavirus Disease (COVID–19). (2) * * * [email protected], or go to: https:// 80. From FERC’s Home Page on the (i) Information used to calculate any www.archives.gov/federal-register/cfr/ internet, this information is available on posting of ATC and TTC must be dated ibr-locations.html . eLibrary. The full text of this document and time-stamped and all calculations (2) North American Energy Standards is available on eLibrary in PDF and shall be performed according to Board (NAESB), 801 Travis Street, Suite Microsoft Word format for viewing, consistently applied methodologies 1675, Houston, TX 77002, Tel: (713) printing, and/or downloading. To access referenced in the Transmission 356–0060. NAESB’s website is at this document in eLibrary, type the Provider’s transmission tariff and shall https://www.naesb.org/. The NAESB docket number excluding the last three be based on Commission-approved WEQ Business Practice Standards; digits of this document in the docket Reliability Standards, business practice Standards and Models the Commission number field. and electronic communication incorporates by reference are as follows: 81. User assistance is available for standards, and related implementation (i) WEQ–000, Abbreviations, eLibrary and the FERC’s website during documents, as well as current industry Acronyms, and Definition of Terms normal business hours from FERC practices, standards and criteria. Such (WEQ Version 003.1, September 30, Online Support at 202–502–6652 (toll calculations shall be conducted in a 2015) (including only the definitions of free at 1–866–208–3676) or email at manner that is transparent, consistent Interconnection Time Monitor, Time [email protected], or the with anticipated system conditions and Error, and Time Error Correction); Public Reference Room at (202) 502– outages for the relevant timeframe, and (ii) WEQ–000, Abbreviations, 8371, TTY (202)502–8659. Email the not unduly discriminatory or Acronyms, and Definition of Terms Public Reference Room at preferential. (WEQ Version 003.3, March 30, 2020); (iii) WEQ–001, Open Access Same- [email protected]. * * * * * Time Information Systems (OASIS), X. Effective Date and Congressional PART 38—STANDARDS FOR PUBLIC (WEQ Version 003.3, March 30, 2020); (iv) WEQ–002, Open Access Same- Notification UTILITY BUSINESS OPERATIONS AND Time Information Systems (OASIS) 82. These regulations are effective COMMUNICATIONS August 2, 2021. The Commission has Business Practice Standards and determined, with the concurrence of the ■ 3. The authority citation for part 38 Communication Protocols (S&CP), Administrator of the Office of continues to read as follows: (WEQ Version 003.3, March 30, 2020); Information and Regulatory Affairs of (v) WEQ–003, Open Access Same- Authority: 16 U.S.C. 791–825r, 2601–2645; Time Information Systems (OASIS) Data OMB, that this rule is not a ‘‘major rule’’ 31 U.S.C. 9701; 42 U.S.C. 7101–7352. as defined in section 351 of the Small Dictionary, (WEQ Version 003.3, March ■ 4. Revise § 38.1 to read as follows: Business Regulatory Enforcement 30, 2020); (vi) WEQ–004, Coordinate Fairness Act of 1996. The Final Rule § 38.1 Incorporation by reference of North Interchange (WEQ Version 003.3, March will be submitted to the Senate, House, American Energy Standards Board 30, 2020); and Government Accountability Office. Wholesale Electric Quadrant standards. (vii) WEQ–005, Area Control Error List of Subjects (a) Any public utility that owns, (ACE) Equation Special Cases (WEQ operates, or controls facilities used for Version 003.3, March 30, 2020); 18 CFR Part 37 the transmission of electric energy in (viii) WEQ–006, Manual Time Error Electric power, Electric utilities. interstate commerce or for the sale of Correction (WEQ Version 003.1, Sept. electric energy at wholesale in interstate 18 CFR Part 38 30, 2015); commerce and any non-public utility (ix) WEQ–007, Inadvertent Business practice standards, Electric that seeks voluntary compliance with Interchange Payback (WEQ Version utilities, Incorporation by reference, jurisdictional transmission tariff 003.3, March 30, 2020); Reporting and recordkeeping reciprocity conditions must comply (x) WEQ–008, Transmission Loading requirements. with the business practice and Relief (TLR)—Eastern Interconnection By the Commission. electronic communication standards (WEQ Version 003.3, March 30, 2020); promulgated by the North American Issued: May 20, 2021. (xi) WEQ–011, Gas/Electric Energy Standards Board (NAESB) Coordination (WEQ Version 003.3, Kimberly D. Bose, Wholesale Electric Quadrant (WEQ) that March 30, 2020); Secretary. are incorporated by reference in (xii) WEQ–012, Public Key In consideration of the foregoing, the paragraph (b) of this section. Infrastructure (PKI) (WEQ Version Commission amends parts 37 and 38, (b)(1) The material incorporated by 003.3, March 30, 2020); chapter I, title 18, Code of Federal reference in this section was approved (xiii) WEQ–013, Open Access Same- Regulations, as follows: by the Director of the Federal Register Time Information Systems (OASIS)
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Implementation Guide, (WEQ Version (xv) WEQ–021, Measurement and (xvii) WEQ–023, Modeling. (WEQ 003.3, March 30, 2020); Verification of Energy Efficiency Version 003.3, March 30, 2020). (xiv) WEQ–015, Measurement and Products (WEQ Version 003.3, March Note: The following appendix will not be Verification of Wholesale Electricity 30, 2020); published in the Code of Federal Regulations (xvi) WEQ–022, Electric Industry Demand Response (WEQ Version 003.3, Registry (WEQ Version 003.3, March 30, Appendix I March 30, 2020); 2020); and
STANDARDS AFFECTED BY THE REVISIONS TO IMPLEMENT RECOMMENDATIONS FOLLOWING SANDIA’S SURETY ASSESSMENT ON CYBERSECURITY
Standard Revisions
WEQ–000–1
Deleted seven abbreviations/acronyms ...... DNS—Domain Name Service. IPCP—Internet Protocol Control Protocol. NTP—Network Time Protocol. PPP—Point to Point Protocol. SLIP—Serial Line Internet Protocol. SNMP—Simple Network Management Protocol. SSL—Secure Sockets Layer. Added one abbreviation/acronym ...... OWASP—Open Web Application Security Project.
WEQ–001
Revised one standard ...... WEQ–001–13.1.3.3.
WEQ–002
Revised 14 standards ...... WEQ–002–2.3. WEQ–002–2.4. WEQ–002–4.2.1.1. WEQ–002–4.2.1.2. WEQ–002–4.2.1.3. WEQ–002–4.2.2. WEQ–002–5. WEQ–002–5.1.1. WEQ–002–5.1.2. WEQ–002–5.1.3. WEQ–002–5.6. WEQ–002–101.2.3.1. WEQ–002–101.3.3.2. WEQ–002–101.3.3.3.
[FR Doc. 2021–11352 Filed 6–1–21; 8:45 am] rates in light of the income tax Street NE, Washington, DC 20426, (202) BILLING CODE 6717–01–P reductions provided by the Tax Cuts 502–6167, [email protected]. and Jobs Act and the Commission’s Laura Kane (Technical Information), revised policy and precedent Office of Energy Market Regulation, 888 DEPARTMENT OF ENERGY concerning tax allowances to address First Street NE, Washington, DC 20426, the double recovery issue identified by (202) 502–8653, [email protected]. Federal Energy Regulatory United Airlines, Inc. v. FERC. These SUPPLEMENTARY INFORMATION: Commission procedures also allowed interstate natural gas pipelines to voluntarily I. Background 18 CFR Parts 154, 260, and 284 reduce their rates. In this final rule, the 1. On July 18, 2018, the Commission 1 [Docket Nos. RM18–11–002 and RP18–415– Commission finds that there are no issued a final rule (Order No. 849) 002; Order No. 849–B] more expected filings that will make use adopting procedures for determining of these special procedures, which are which jurisdictional natural gas Interstate and Intrastate Natural Gas uniquely tied to the Tax Cuts and Jobs pipelines may be collecting unjust and Pipelines; Rate Changes Relating to Act, and that all existing proceedings unreasonable rates in light of the Federal Income Tax Rate American under these procedures have closed. income tax reductions provided by the Forest & Paper Association Therefore, the Commission removes the Tax Cuts and Jobs Act 2 and the procedures from the Code of Federal Commission’s Revised Policy AGENCY: Federal Energy Regulatory Regulations as obsolete. Commission, Department of Energy. 1 Interstate & Intrastate Nat. Gas Pipelines; Rate ACTION: Final rule. DATES: This rule is effective August 2, Changes Relating to Fed. Income Tax Rate, Order 2021. No. 849, 83 FR 36672 (July 30, 2018), 164 FERC SUMMARY: Order No. 849 adopted ¶ 61,031 (2018). FOR FURTHER INFORMATION CONTACT: 2 An Act to provide for reconciliation pursuant to procedures for determining which titles II and V of the concurrent resolution on the jurisdictional natural gas pipelines may Vince Mareino (Legal Information), budget for fiscal year 2018, Public Law 115–97, 131 be collecting unjust and unreasonable Office of the General Counsel, 888 First Stat. 2054 (2017) (Tax Cuts and Jobs Act).
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Statement 3 and precedent 4 concerning requirement described above.10 Second, Option 1 hearing or eligible to be set for tax allowances to address the double new § 154.404 of the Commission’s an Option 1 hearing. As a result, the recovery issue identified by United regulations established the regulations regulations governing this type of Airlines, Inc. v. FERC.5 These necessary to govern Option 1, the limited NGA section 4 rate reduction procedures also allowed interstate limited NGA section 4 rate reduction filings are no longer needed. We shall natural gas pipelines to voluntarily filings.11 Options 2, 3, and 4 above did therefore remove § 154.404 of the reduce their rates. On April 18, 2019, not require any change in regulations, as Commission’s regulations. the Commission denied all outstanding they could proceed under preexisting 7. Order No. 849 also established requests for rehearing and reaffirmed regulatory authority. Third, new separate regulations under § 284.123(i) the Commission’s determinations in § 284.123(i) of the Commission’s to address the unique jurisdictional Order No. 849 (Order No. 849–A).6 regulations provided procedures for situation of section 311 and Hinshaw 2. Order No. 849 established a section 311 of the National Gas Policy pipelines, which have their interstate requirement, pursuant to sections 10 Act of 1978 (NGPA) 12 and Hinshaw 13 rates regulated by the Commission, but and 14(a) of the Natural Gas Act (NGA),7 pipelines to establish fair and equitable which are primarily regulated at the that all interstate natural gas companies rates for their interstate services.14 state level. Under pre-existing policy, with cost-based stated rates that filed a the Commission reviews the rates of 2017 FERC Form No. 2 or 2–A must file II. Discussion section 311 and Hinshaw pipelines the FERC Form No. 501–G informational 4. In Order No. 849, the Commission every five years on a rolling basis.16 filing for the purpose of evaluating the identified 129 interstate natural gas Section 284.123(i), in brief, provided a impact of the Tax Cuts and Jobs Act and pipelines with cost-based rates that mechanism to lower these pipelines’ the United Airlines Issuances on were required to file the FERC Form No. interstate rates prior to their five-year interstate natural gas pipelines’ revenue 501–G, codified in § 260.402. As of the review, in the event that state requirements. In addition to the FERC date of Order No. 849–A, the government regulators also adjusted Form No. 501–G filing requirement, the Commission had received filings from their rates in light of the recent changes Commission provided four options for all 129 identified pipelines.15 As of in tax code and tax policy. In the three- each interstate natural gas pipeline to April 15, 2021, all of these FERC Form and-a-half years from the passage of the make a filing to address the changes to No. 501–G filings have been accepted Tax Cuts and Jobs Act in November the pipeline’s recovery of tax costs or for filing, and the proceedings 2017 until the present, almost all explain why no action is needed: (1) A terminated. Because Order No. 849 section 311 and Hinshaw pipelines have limited NGA section 4 8 rate reduction established a one-time reporting either come before the Commission for filing (Option 1), (2) a commitment to requirement tied to a past event, it their five-year review, or have come file a general section 4 rate case or would not apply to any new pipelines before the Commission for an out-of- prepackaged settlement in the near that may enter the market in the future. cycle rate review, whether due to future (Option 2), (3) an explanation Therefore, the regulations implemented § 284.123(i), voluntary action, or the why no rate change is needed (Option in Order No. 849 are no longer needed, other requirements of section 284 of the 3), and (4) no action (Option 4). These and we hereby remove § 260.402 from Commission’s regulations that can procedures were intended to encourage the Commission’s regulations. compel an out-of-cycle rate review. The natural gas pipelines to voluntarily 5. Eleven pipelines chose Option 1, Commission, through its own review, reduce their rates to the extent the tax codified in § 154.404. Under Option 1, finds it is unlikely that the remaining changes result in their over-recovering pipelines could only choose to make section 311 and Hinshaw pipelines will their cost of service, while also these limited NGA section 4 rate trigger § 284.123(i), and in any event all providing the Commission and reduction filings at the time of their are due for their five-year review in the stakeholders information necessary to FERC Form No. 501–G filings. Just as no near future under the Commission’s pre- take targeted actions under NGA section new FERC Form No. 501–G filings are existing policy. As a result, the special 5 9 where necessary to achieve just and possible, likewise no new filings under circumstances presented by the Tax reasonable rates. § 154.404 are possible. Cuts and Jobs Act that required 3. Order No. 849 made three changes 6. For any of these limited NGA § 284.123(i) are no longer present. We to the Code of Federal Regulations. section 4 rate reduction filings that shall therefore remove § 284.123(i) of proceeded to hearing, § 154.404 also First, new § 260.402 of the the Commission’s regulations. Commission’s regulations established governs the process by which these the FERC Form No. 501–G filing hearings are adjudicated, so it would III. Regulatory Requirements not have been reasonable to remove A. Information Collection Statement 3 Inquiry Regarding the Commission’s Policy for § 154.404 before all the existing hearings 17 Recovery of Income Tax Costs, 81 FR 94366 (Dec. concluded, either with the acceptance of 8. The Paperwork Reduction Act 23, 2016), 162 FERC ¶ 61,227 (Revised Policy a settlement or with the publication of requires each Federal agency to seek Statement), order on reh’g, 83 FR 12362 (March 21, an Initial Decision. There are no and obtain the Office of Management 2018), 164 FERC ¶ 61,030 (2018) (Revised Policy and Budget’s (OMB) approval before Statement Rehearing). remaining dockets that are either in an 4 SFPP, L.P., Opinion No. 511–C, 162 FERC undertaking a collection of information ¶ 61,228, at P 9 (2018). 10 18 CFR 260.402. (including reporting, record keeping, 5 827 F.3d 122 (D.C. Cir. 2016) (United Airlines). 11 18 CFR 154.404. and public disclosure requirements) For purposes of this order, the Revised Policy 12 15 U.S.C. 3371. Statement, United Airlines, and Opinion No. 511– 13 Section 1(c) of the NGA, 15 U.S.C. 717(c), 16 Contract Reporting Requirements of Intrastate C will collectively be referred to as ‘‘United Airlines exempts from the Commission’s NGA jurisdiction Nat. Gas Cos., Order No. 735, 75 FR 29404 (May Issuances.’’ those pipelines which transport gas in interstate 26, 2010), 131 FERC ¶ 61,150, at P 96, order on 6 Interstate & Intrastate Nat. Gas Pipelines; Rate commerce if: (1) They receive natural gas at or reh’g, Order No. 735–A, 75 FR 80685 (Dec. 23, Changes Relating to Fed. Income Tax Rate, Order within the boundary of a state, (2) all the gas is 2010), 133 FERC ¶ 61,216 (2010); see also No. 849–A, 84 FR 17739 (April 26, 2019), 167 FERC consumed within that state, and (3) the pipeline is Hattiesburg Indus. Gas Sales, L.L.C., 134 FERC ¶ 61,051 (2019). regulated by a state Commission. This is known as ¶ 61,236 (2011) (imposing a five-year rate review 7 15 U.S.C. 717i(a), 717m(a). the Hinshaw exemption. requirement on Hattiesburg Industrial Gas Sales, 8 15 U.S.C. 717c. 14 18 CFR 284.123(i). L.L.C.). 9 15 U.S.C. 717d. 15 Order No. 849–A, 167 FERC ¶ 61,051 at P 4. 17 44 U.S.C. 3501–3521.
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directed to ten or more persons or and Jobs Act). This final rule eliminates NGA were not required to file FERC contained in a rule of general an existing data collection, FERC–501G Form No. 501–G. applicability. OMB regulations require (OMB Control No. 1902–0302). Order 10. The Commission identified 129 approval of certain information No. 849 (in Docket No. RM18–11–000) interstate natural gas pipelines with collection requirements contemplated allowed the Commission to determine cost-based rates that were required to by final rules (including deletion, which jurisdictional natural gas file the adopted FERC Form No. 501–G. revision, or implementation of new pipelines may be collecting unjust and Interstate natural gas pipelines had four requirements). Upon approval of a unreasonable rates in light of the recent options as to how to address the results collection of information, OMB will reduction in the corporate income tax of the formula contained in the FERC assign an OMB control number and an rate in the Tax Cuts and Jobs Act and Form No. 501–G. Each option has a expiration date. Respondents subject to changes to the Commission’s income tax different burden profile and a different the filing requirements of a rule will not allowance policies following the United cost per response. Companies made be penalized for failing to respond to the Airlines decision. FERC Form No. 501– their own business decisions as to collection of information unless the G collected information as to whether collection of information displays a the pipeline was a pass-through entity. which option they selected. This final valid OMB control number. The FERC Form No. 501–G collected income rule eliminates FERC Form No. 501–G following discussion describes and and balance sheet statement financial which reduces burden on all applicants. analyzes the collection of information to data from all NGA pipelines that have 11. All burden from FERC Form No. be deleted by this final rule. stated cost-based rates on file with the 501–G has already been incurred. For 9. Public Reporting Burden: In this Commission. NGA pipelines whose informational purposes, the previous final rule, the Commission eliminates rates were examined in a general rate estimate of burden and cost for the now- FERC Form No. 501–G 18 (One-time case under section 4 of the NGA or in complete FERC Form No. 501–G Report on Rate Effect of the Tax Cuts an investigation under section 5 of the collection follows.
FERC–501G—RATE CHANGES RELATING TO FEDERAL CORPORATE INCOME TAX RATE FOR INTERSTATE NATURAL GAS PIPELINES, TO BE ELIMINATED BY THE FINAL RULE IN DOCKET NO. RM18–11–002
Responses Average Average Respondents per Total burden hour cost per Total Total cost respondent responses per response response burden hours ($)
(1) (2) (1) * (2) = (3) (4) (5) (1) * (4) = (6) (1) * (5) = (7)
Interstate Natural Gas Pipelines With Cost-Based Rates
FERC Form No. 501– G, One-time Report (reduction) 19 ...... 129 1 *129 *9 hrs. *$756 *1,161 *$97,524
Optional Response
No Response (reduc- tion) ...... 51 0 0 0 0 0 0 Case for no change (re- duction) ...... 62 1 62 5 420 310 26,040 Limited Sec 4 filing (re- duction) 20 ...... 15 1 15 6 504 90 7,560 General Sec. 4 filing (reduction) 21 ...... 1 1 1 22 512 42,968 512 42,968
NGPA Section 311 and Hinshaw Pipelines With Cost-Based Rates
NGPA rate filing (reduc- tion) 23 ...... 24 15 1 15 24 2,015 360 30,225
Total, To Be Elimi- nated by RM18– 11–002 ...... 25 144 ...... * 222 ...... * 2,433 * 204,317 * (reduction).
12. This final rule eliminates all annual information collection burden B. Environmental Analysis information collection and (2,433 hours) and cost ($204,317) recordkeeping requirements associated associated with FERC–501G (OMB 13. The Commission is required to with RM18–11–000. The removal of the Control No. 1902–0302). prepare an Environmental Assessment FERC–501G eliminates the estimated or an Environmental Impact Statement
18 FERC–501G has also been referenced as FERC 22 The estimate for hours is based on the 24 Estimate of number of respondents assumes Form No. 501–G. estimated average hours per response for the FERC– that states will act within one year to reduce NGPA 19 18 CFR 260.402 (as revised). 545 (OMB Control No. 1902–0154), with general section 311 and Hinshaw pipeline rates to reflect NGA section 4, 18 CFR 154.312 filings weighted at the Tax Cuts and Jobs Act. 20 18 CFR 154.404 (as revised). a ratio of 20 to one. 25 Number of unique respondents = (One-time 21 18 CFR 154.312. 23 18 CFR 284.123(i) (as revised). Report) + (NGPA rate filing).
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for any action that may have a 16. From the Commission’s Home PART 154—RATE SCHEDULES AND significant adverse effect on the human Page on the internet, this information is TARIFFS environment.26 The actions taken here available on eLibrary. The full text of fall within categorical exclusions in the this document is available on eLibrary ■ 1. The authority citation for part 154 Commission’s regulations for rules in PDF and Microsoft Word format for continues to read as follows: regarding information gathering, viewing, printing, and/or downloading. Authority: 15 U.S.C. 717–717w; 31 U.S.C. 27 analysis, and dissemination. To access this document in eLibrary, 9701; 42 U.S.C. 7102–7352. Therefore, an environmental review is type the docket number excluding the § 154.404 [Removed] unnecessary and has not been prepared last three digits of this document in the in this rulemaking. ■ docket number field. 2. Remove § 154.404. C. Regulatory Flexibility Act 17. User assistance is available for PART 260—STATEMENTS AND 14. The Regulatory Flexibility Act of eLibrary and the Commission’s website REPORTS (SCHEDULES) 1980 (RFA) 28 generally requires a during normal business hours from description and analysis of final rules FERC Online Support at 202–502–6652 ■ 3. The authority citation for part 260 that will have significant economic (toll free at 1–866–208–3676) or email at continues to read as follows: impact on a substantial number of small [email protected], or the Authority: 15 U.S.C. 717–717w, 3301– entities. The RFA mandates Public Reference Room at (202) 502– 3432; 42 U.S.C. 7101–7352. consideration of regulatory alternatives 8371, TTY (202) 502–8659. Email the § 260.402 [Removed] that accomplish the stated objectives of Public Reference Room at a rulemaking while minimizing any [email protected]. ■ 4. Remove § 260.402. significant economic impact on a substantial number of small entities. In E. Effective Date and Congressional PART 284—CERTAIN SALES AND lieu of preparing a regulatory flexibility Notification TRANSPORTATION OF NATURAL GAS analysis, an agency may certify that a UNDER THE NATURAL GAS POLICY final rule will not have a significant 18. These regulations are effective ACT OF 1978 AND RELATED economic impact on a substantial August 2, 2021. This rule does not alter AUTHORITIES number of small entities.29 In Order No. the substantive rights or interests of any 849, the Commission found that the interested persons, and it merely ■ 5. The authority citation for part 284 institution of the new regulations would removes certain outdated and continues to read as follows: not have a significant impact on a nonessential natural gas regulations Authority: 15 U.S.C. 717–717z, 3301– substantial number of small entities.30 from the Commission’s body of 3432; 42 U.S.C. 7101–7352; 43 U.S.C. 1331– Most of the natural gas pipelines regulations on a prospective basis. 1356. regulated by the Commission do not fall Therefore, prior notice and comment § 284.123 [Amended] within the RFA’s definition of a small under section 4 of the Administrative entity.31 For the same reasons, removing Procedure Act (APA) 32 are unnecessary. ■ 6. In § 284.123, remove paragraph (i). these regulations will not have a The Commission has determined that [FR Doc. 2021–11353 Filed 6–1–21; 8:45 am] significant impact on a substantial this rule is not a ‘‘major rule’’ as defined BILLING CODE 6717–01–P number of small entities. in section 351 of the Small Business D. Document Availability Regulatory Enforcement Fairness Act of 1996. DEPARTMENT OF JUSTICE 15. In addition to publishing the full text of this document in the Federal List of Subjects Drug Enforcement Administration Register, the Commission provides all 18 CFR Part 154 interested persons an opportunity to 21 CFR Part 1308 view and/or print the contents of this Natural gas, Pipelines, Reporting and document via the internet through the [Docket No. DEA–658] recordkeeping requirements. Commission’s Home Page (http:// Schedules of Controlled Substances: www.ferc.gov). At this time, the 18 CFR Part 260 Commission has suspended access to Placement of Remimazolam in the Commission’s Public Reference Natural gas, Reporting and Schedule IV Room due to the President’s March 13, recordkeeping requirements. AGENCY: Drug Enforcement 2020 proclamation declaring a National 18 CFR Part 284 Administration, Department of Justice. Emergency concerning the Novel ACTION: Final rule. Coronavirus Disease (COVID–19). Continental shelf, Natural gas, Reporting and recordkeeping SUMMARY: This final rule adopts, 26 Regulations Implementing the National requirements. without change, an interim final rule Environmental Policy Act of 1969, Order No. 486, with request for comments published in 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. By the Commission. ¶ 30,783 (1987) (cross-referenced at 41 FERC the Federal Register on October 6, 2020, ¶ 61,284). Issued: May 20, 2021. placing the substance remimazolam, 27 See 18 CFR 380.4(a)(2)(ii) and (a)(5). Kimberly D. Bose, including its salts, isomers, and salts of 28 5 U.S.C. 601–612. Secretary. isomers whenever the existence of such 29 5 U.S.C. 605(b). 30 salts, isomers, and salts of isomers is Order No. 849, 164 FERC ¶ 61,031 at P 296. In consideration of the foregoing, the 31 In Order No. 849, the Commission determined possible, in schedule IV of the 3.9% of the total potential NGA respondents and Commission amends parts 154, 260, & Controlled Substances Act. With the 5.1% of the total NGPA section 311 and Hinshaw 284, chapter I, title 18, Code of Federal issuance of this final rule, DEA pipelines could be considered a small entity. Regulations, as follows: maintains remimazolam, including its Eliminating the filing requirement would eliminate any burden and cost from FERC–501G for small and salts, isomers, and salts of isomers large entities. 32 5 U.S.C. 553(b). whenever the existence of such salts,
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isomers, and salts of isomers is possible, (Remimazolam) as an intravenous classifying remimazolam as schedule III in schedule IV of the Controlled medication for the induction and ‘‘due to FDA placing a black box Substances Act. maintenance of procedural sedation in warning label on benzodiazepines and DATES: The effective date of this adults undergoing procedures lasting 30 the numerous studies illustrating [the rulemaking is July 2, 2021. minutes or less. The IFR to schedule abuse and misuse of benzodiazepines] FOR FURTHER INFORMATION CONTACT: remimazolam provided opportunity for within the public communities.’’ The Terrence L. Boos, Drug and Chemical interested persons to submit comments, commenter noted that schedule III Evaluation Section, Diversion Control as well as file a request for hearing or provided more restrictions and could Division, Drug Enforcement waiver of hearing, on or before protect the public from harm. The Administration; Telephone: 571–776– November 5, 2020. DEA did not receive individual summarized four reference 2265. any requests for hearing or waiver of articles related to the historic medical hearing. use and abuse of prescription SUPPLEMENTARY INFORMATION: Comments Received benzodiazepines, diversion and Background and Legal Authority trafficking of licit and illicit In response to the IFR, DEA received On October 6, 2020, the Drug benzodiazepines, and the serious three comments, from one individual adverse effects that may occur with Enforcement Administration (DEA), and two anonymous sources. One pursuant to 21 U.S.C. 811(j), published misuse and abuse of benzodiazepines, commenter supported schedule IV including an increase in an interim final rule (IFR) [85 FR 63014] placement; the second commenter to make remimazolam (including its benzodiazepine-related deaths. Further, suggested placement in schedule III the commenter believed that the opioid salts, isomers, and salts of isomers instead; and the third commenter whenever the existence of such salts, epidemic has overshadowed the expressed views on a non-DEA benzodiazepines misuse and abuse, but isomers, and salts of isomers is rulemaking. DEA will not summarize or possible), a schedule IV controlled suggested that benzodiazepines and respond to this last comment as it was opioids are working ‘‘in tandem substance(s). See 21 CFR 1308.14(c)(51) outside the scope of this rulemaking. (DEA Controlled Substance Code 2846). wreaking havoc in the lives of many’’ Over time, alternative chemical names Schedule IV Placement and that ‘‘creating a strong foundation have been used to describe this same An anonymous commenter briefly through classification of drugs can place specific substance. In the preamble to expressed that schedule IV was the precedent in ensuring the health and the IFR, DEA provided ‘‘4H- appropriate schedule for remimazolam safety of American citizens.’’ imidazol[1,2-a][1,4]benzodiazepine-4- based on the data from clinical trials DEA Response: DEA considered the propionic acid, 8-bromo-1-methyl-6-(2- conducted, limited side effects, and its commenter’s position; however, does pyridinyl)-(4S)-methyl ester, better performance as compared to find placement in schedule IV to be benzenesulfonate (1:1) and also, methyl similar substances such as midazolam. appropriate for remimazolam. As 3-[(4S)-8-bromo-1-methyl-6-pyridin-2- DEA Response: DEA determined in discussed briefly in the background and yl-4H-imidazo[1,2-a][1,4]benzodiazepin- the IFR, and re-affirms in this final rule, legal authority section above, and in 4yl]propanoate benzenesulfonic acid’’ 1 that remimazolam meets the criteria more detail in the IFR [85 FR 63014, as the chemical names of remimazolam, under 21 U.S.C. 812(b)(4) for schedule 63015–63016], FDA approved the New which refer to the benzenesulfonic acid IV control. As described by the Drug Application (NDA) for BYFAVO salt of remimazolam. Since DEA Department of Health and Human (remimazolam), and HHS provided DEA controlled remimazolam and its salts, Services (HHS),2 and in DEA’s August with a scientific and medical evaluation isomers, and salts of isomers in 2020 eight-factor analysis, remimazolam and a scheduling recommendation for schedule IV by publication of the IFR, demonstrated abuse potential similar to control of remimazolam in schedule IV. DEA believes it is more appropriate to midazolam, a schedule IV depressant. Pursuant to 21 U.S.C. 811(j), the include chemical names consistent with DEA appreciates the support for this scheduling recommendation by HHS the free base of this substance, namely rulemaking. and FDA approval of the NDA ‘‘4H-imidazol[1,2- necessitated DEA’s review and its own Schedule III Placement a][1,4]benzodiazepine-4-propionic acid, determination for the scheduling action 8-bromo-1-methyl-6-(2-pyridinyl)-(4S)- One individual commenter expressed (to first issue the IFR and subsequently methyl ester and methyl 3-[(4S)-8- concerns with DEA’s placement of to issue this final rule) in accordance bromo-1-methyl-6-pyridin-2-yl-4H- remimazolam in schedule IV and with 21 U.S.C. 811(b). DEA considered imidazo[1,2-a][1,4]benzodiazepin- instead suggested placing remimazolam HHS’ scientific and medical evaluation 4yl]propanoate’’ in the preamble of this in schedule III. The commenter briefly and scheduling recommendation, and final rule. It bears emphasis that the discussed the pharmacology of all other relevant data and concurred chemical that is the subject of this final remimazolam and noted that both HHS with HHS’ recommendation that rule is the same substance that was the and DEA stated the abuse potential and remimazolam has low potential of abuse subject of the IFR. DEA simply is using public health risk of remimazolam is relative to substances in schedule III alternative chemical descriptions to similar to schedule IV benzodiazepines. and therefore supported—and continues refer to that same substance in this However, the commenter stated that to support through this final rule— preamble. remimazolam induced ‘‘positive placement of remimazolam in schedule Remimazolam is a new molecular euphoria related responses in [a] human IV. DEA notes that under 21 U.S.C. entity with central nervous system abuse potential study leading to 811(b), HHS’s recommendation shall be depressant properties, and the Food and dependence to relative drugs in binding on the Administrator of DEA (as Drug Administration (FDA), in July schedule III’’ and recommended delegated by the Attorney General) as to 2020, approved the use of BYFAVO any scientific or medical considerations 2 Basis for the Recommendation to Control involved in three of the eight factors 1 The Department of Health and Human Services Remimazolam and Its Salts in Schedule IV of the also referred to the substance by these chemical Controlled Substances Act. Department of Health specified in 21 U.S.C. 811(c) (i.e., factors names in its April 2020 scientific and medical and Human Services. April 15, 2020. Received by pertaining to the substance’s actual or evaluation and scheduling recommendation. DEA on July 10, 2020. relative potential for abuse, its history
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and current pattern of abuse, and the 3. Security. Remimazolam is subject the Administrative Procedure Act (APA) scope, duration, and significance of to schedule III–V security requirements (5 U.S.C. 553) generally requires notice abuse). Regarding the commenter’s for DEA registrants and it must be and comment for rulemakings. public safety concerns with handled and stored in accordance with However, 21 U.S.C. 811(j) provides that remimazolam’s placement in schedule 21 CFR 1301.71–1301.77. Non- in cases where a certain new drug is (1) IV, there is still significant oversight for practitioners handling remimazolam approved by HHS and (2) HHS schedule IV drugs. For both the IFR and must also comply with the employee recommends control in CSA schedule this final rule, DEA made the findings screening requirements of 21 CFR II–V, DEA shall issue an IFR scheduling required under 21 U.S.C. 812(b)(4) for 1301.90–1301.93. the drug within 90 days. Additionally, the placement of remimazolam in 4. Labeling and Packaging. All labels, subsection (j) specifies that the schedule IV. labeling, and packaging for commercial rulemaking shall become immediately Requirements for Handling containers of remimazolam must effective as an IFR without requiring Remimazolam comply with 21 U.S.C. 825 and 958(e), DEA to demonstrate good cause. DEA and be in accordance with 21 CFR part issued an IFR on October 6, 2020, and As indicated above, remimazolam has 1302. solicited public comments on that rule. been a schedule IV controlled substance 5. Inventory. Since October 6, 2020, Subsection (j) further provides that after by virtue of an IFR issued by DEA in every DEA registrant who possesses any giving interested persons the October 2020. Thus, this final rule does quantity of remimazolam must take an opportunity to comment and to request not alter the regulatory requirements inventory of remimazolam on hand, a hearing, the Attorney General, as applicable to handlers of remimazolam pursuant to 21 U.S.C. 827 and 958, and delegated to the Administrator of DEA, that have been in place since that time. in accordance with 21 CFR 1304.03, shall issue a final rule in accordance Nonetheless, for informational 1304.04, and 1304.11. purposes, we restate here those with the scheduling criteria of 21 U.S.C. 6. Records and Reports. DEA 811(b) through (d) and 812(b). DEA is requirements. Remimazolam is subject registrants must maintain records and to the Controlled Substances Act’s now responding to the comments submit reports for remimazolam, submitted by the public and issuing the (CSA) schedule IV regulatory controls pursuant to 21 U.S.C. 827, 832(a), and and administrative, civil, and criminal final rule in accordance with subsection 958(e), and in accordance with 21 CFR (j). sanctions applicable to the manufacture, 1301.74(b) and (c) and parts 1304, 1312, distribution, reverse distribution, and 1317. Executive Orders 12866 (Regulatory dispensing, importing, exporting, 7. Prescriptions. All prescriptions for Planning and Review) and 13563 research, and conduct of instructional remimazolam, or products containing (Improving Regulation and Regulatory activities and chemical analysis with, remimazolam, must comply with 21 Review) and possession involving schedule IV U.S.C. 829, and be issued in accordance substances, including, but not limited with 21 CFR parts 1306 and 1311, In accordance with 21 U.S.C. 811(a) to, the following: subpart C. and (j), this scheduling action is subject 1. Registration. Any person who 8. Manufacturing and Distributing. In to formal rulemaking procedures handles (manufactures, distributes, addition to the general requirements of performed ‘‘on the record after reverse distributes, dispenses, imports, the CSA and DEA regulations that are opportunity for a hearing,’’ which are exports, engages in research, or applicable to manufacturers and conducted pursuant to the provisions of conducts instructional activities or distributors of schedule IV controlled 5 U.S.C. 556 and 557. The CSA sets chemical analysis with, or possesses) substances, such registrants should be forth procedures and criteria for remimazolam, or who desires to handle advised that (consistent with the scheduling a drug or other substance. remimazolam, must be registered with foregoing considerations) any Such actions are exempt from review by DEA to conduct such activities pursuant manufacturing or distribution of the Office of Management and Budget to 21 U.S.C. 822, 823, 957, and 958 and remimazolam may only be for the (OMB) pursuant to section 3(d)(1) of in accordance with 21 CFR parts 1301 legitimate purposes consistent with the Executive Order (E.O.) 12866 and the and 1312. Any person who intends to principles reaffirmed in E.O. 13563. handle remimazolam, and is not drug’s labeling, or for research activities registered with DEA, must submit an authorized by the Federal Food, Drug, Executive Order 12988, Civil Justice application for registration and may not and Cosmetic Act and the CSA. Reform continue to handle remimazolam unless 9. Importation and Exportation. All DEA has approved that application for importation and exportation of This regulation meets the applicable registration, pursuant to 21 U.S.C. 822, remimazolam must be in compliance standards set forth in sections 3(a) and 823, 957, and 958, and in accordance with 21 U.S.C. 952, 953, 957, and 958, 3(b)(2) of E.O. 12988 to eliminate with 21 CFR parts 1301 and 1312. These and in accordance with 21 CFR part drafting errors and ambiguity, minimize registration requirements, however, are 1312. litigation, provide a clear legal standard 10. Liability. Any activity involving not applicable to patients (end users) for affected conduct, and promote remimazolam not authorized by, or in who possess remimazolam pursuant to simplification and burden reduction. violation of, the CSA or its a lawful prescription. Executive Order 13132, Federalism 2. Disposal of stocks. Any person who implementing regulations, is unlawful, does not desire or is not able to and may subject the person to This rulemaking does not have maintain a schedule IV registration must administrative, civil, and/or criminal federalism implications warranting the surrender all quantities of currently sanctions. application of E.O. 13132. The rule does held remimazolam or may transfer all Regulatory Analyses not have substantial direct effects on the quantities of remimazolam to a person States, on the relationship between the registered with DEA in accordance with Administrative Procedure Act national government and the States, or 21 CFR part 1317, in additional to all This final rule, without change, on the distribution of power and other applicable Federal, State, local, affirms the amendment made by the IFR responsibilities among the various and tribal laws. that is already in effect. Section 553 of levels of government.
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Executive Order 13175, Consultation PART 1308—SCHEDULES OF D. Unfunded Mandates Reform Act and Coordination With Indian Tribal CONTROLLED SUBSTANCES E. Takings (Executive Order 12630) Governments F. Federalism (Executive Order 13132) ■ Accordingly, the IFR amending 21 G. Civil Justice Reform (Executive Order 12988) This rule does not have tribal CFR part 1308, which published on implications warranting the application H. Consultation With Indian Tribes October 6, 2020 (85 FR 63014), is (Executive Order 13175 and of E.O. 13175. It does not have adopted as final without change. Departmental Policy) substantial direct effects on one or more I. Paperwork Reduction Act D. Christopher Evans, Indian tribes, on the relationship J. National Environmental Policy Act between the Federal government and Acting Administrator. K. Effects on Energy Supply, Distribution, Indian tribes, or on the distribution of [FR Doc. 2021–11512 Filed 6–1–21; 8:45 am] and Use (Executive Order 13211) power and responsibilities between the BILLING CODE 4410–09–P L. Clarity of This Regulation Federal government and Indian tribes. M. Data Quality Act N. Administrative Procedure Act Regulatory Flexibility Act DEPARTMENT OF THE INTERIOR I. Background The Regulatory Flexibility Act (RFA) A. The Federal Civil Penalties Inflation Office of Surface Mining Reclamation (5 U.S.C. 601–612) applies to rules that Adjustment Act Improvements Act of and Enforcement are subject to notice and comment 2015 under section 553(b) of the APA. As Section 518 of SMCRA, 30 U.S.C. noted in the above discussion regarding 30 CFR Parts 723, 724, 845, and 846 1268, authorizes the Secretary of the the applicability of the APA, DEA was [Docket ID: OSM 2021–001; S1D1S Interior to assess civil monetary not required to publish a general notice SS08011000 SX064A000 212S180110; penalties (CMPs) for violations of of proposed rulemaking. Consequently, S2D2S SS08011000 SX064A00 21XS501520] SMCRA. The Office of Surface Mining the RFA does not apply. RIN 1029–AC79 Reclamation and Enforcement’s Unfunded Mandates Reform Act of 1995 (OSMRE) regulations implementing the Civil Monetary Penalty Inflation CMP provisions of section 518 are In accordance with the Unfunded Adjustments located in 30 CFR parts 723, 724, 845, Mandates Reform Act (UMRA) of 1995, and 846. We are adjusting CMPs in six AGENCY: 2 U.S.C. 1501 et seq., DEA has Office of Surface Mining sections—30 CFR 723.14, 723.15, determined that this action would not Reclamation and Enforcement, Interior. 724.14, 845.14, 845.15, and 846.14. result in any Federal mandate that may ACTION: Final rule. On November 2, 2015, the President result ‘‘in the expenditure by State, signed the Federal Civil Penalties SUMMARY: local, and tribal governments, in the Pursuant to the Federal Civil Inflation Adjustment Act Improvements aggregate, or by the private sector, of Penalties Inflation Adjustment Act Act of 2015 (Sec. 701 of Pub. L. 114–74) $100,000,000 or more (adjusted Improvements Act of 2015 (2015 Act), (2015 Act) into law. The 2015 Act, annually for inflation) in any 1 year.’’ which further amended the Federal which further amended the Federal Therefore, neither a Small Government Civil Penalties Inflation Adjustment Act Civil Penalties Inflation Adjustment Act Agency Plan nor any other action is of 1990 (1990 Act), and Office of of 1990 (codified as amended at 28 required under UMRA of 1995. Management and Budget (OMB) U.S.C. 2461 note), requires Federal guidance, this rule adjusts for inflation agencies to promulgate rules to adjust Paperwork Reduction Act of 1995 the level of civil monetary penalties the level of CMPs to account for assessed under the Surface Mining This action does not impose a new inflation. The 2015 Act required an Control and Reclamation Act of 1977 initial ‘‘catch-up’’ adjustment. OSMRE collection of information requirement (SMCRA). under the Paperwork Reduction Act of published the initial adjustment in the 1995. 44 U.S.C. 3501–3521. This action DATES: Effective June 2, 2021. Federal Register on July 8, 2016 (81 FR would not impose recordkeeping or FOR FURTHER INFORMATION CONTACT: 44535), and the adjustment took effect reporting requirements on State or local Kathleen G. Vello, Office of Surface on August 1, 2016. The 2015 Act also governments, individuals, businesses, or Mining Reclamation and Enforcement, requires agencies to publish annual organizations. An agency may not 1849 C Street NW, Mail Stop 4558, inflation adjustments in the Federal conduct or sponsor, and a person is not Washington, DC 20240; Telephone (202) Register no later than January 15 of each required to respond to, a collection of 208–1908. Email: [email protected]. year. These adjustments are aimed at maintaining the deterrent effect of civil information unless it displays a SUPPLEMENTARY INFORMATION: currently valid OMB control number. penalties and furthering the policy goals Table of Contents of the statutes that authorize the Congressional Review Act (CRA) I. Background penalties. Further, the 2015 Act provides that agencies must adjust civil This rule is not a major rule as A. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of monetary penalties ‘‘notwithstanding defined by the CRA, 5 U.S.C. 804. 2015 section 553 of [the Administrative However, pursuant to the CRA, DEA is B. Calculation of Adjustments Procedure Act (APA)].’’ Therefore, ‘‘the submitting a copy of this final rule to C. Effect of the Rule in Federal Program public procedure the APA generally both Houses of Congress and to the States and on Indian Lands requires—notice, an opportunity for Comptroller General. D. Effect of the Rule on Approved State comment, and a delay in effective Programs date—is not required for agencies to List of Subjects in 21 CFR Part 1308 II. Procedural Matters A. Regulatory Planning and Review issue regulations implementing the Administrative practice and (Executive Orders 12866 and 13563) annual adjustment.’’ December 23, 2020, procedure, Drug traffic control, B. Regulatory Flexibility Act Memorandum for the Heads of Reporting and recordkeeping C. Small Business Regulatory Enforcement Executive Departments and Agencies requirements. Fairness Act (M–21–10) from Russell T. Vought,
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Director, Office of Management and Pursuant to the Federal Civil Penalties Pursuant to SMCRA and the 2015 Act, Budget, Implementation of Penalty Inflation Adjustment Act Improvements this final rule reflects the statutorily Inflation Adjustments for 2021, Act of 2015 (OMB Memorandum), at 3. required CMP adjustments as follows:
Points Current Adjusted CFR citation (where penalty dollar penalty dollar applicable) amounts amounts
30 CFR 723.14 ...... 1 $68 $69 2 137 139 3 206 208 4 274 277 5 342 346 6 411 416 7 479 485 8 546 552 9 616 623 10 685 693 11 752 761 12 821 831 13 888 898 14 958 969 15 1,028 1,040 16 1,095 1,108 17 1,163 1,177 18 1,233 1,248 19 1,301 1,316 20 1,369 1,385 21 1,438 1,455 22 1,506 1,524 23 1,574 1,593 24 1,642 1,661 25 1,711 1,731 26 2,054 2,078 27 2,396 2,424 28 2,736 2,768 29 2,949 2,984 30 3,423 3,463 31 3,764 3,808 32 4,106 4,155 33 4,449 4,502 34 4,791 4,848 35 5,133 5,194 36 5,475 5,540 37 5,819 5,888 38 6,160 6,233 39 6,502 6,579 40 6,843 6,924 41 7,188 7,273 42 7,529 7,618 43 7,870 7,963 44 8,213 8,310 45 8,555 8,656 46 8,898 9,003 47 9,239 9,348 48 9,583 9,696 49 9,924 10,041 50 10,266 10,387 51 10,607 10,732 52 10,952 11,081 53 11,294 11,427 54 11,635 11,773 55 11,979 12,121 56 12,320 12,466 57 12,661 12,811 58 13,003 13,157 59 13,347 13,505 60 13,688 13,850 61 14,030 14,196 62 14,373 14,543 63 14,716 14,890 64 15,058 15,236 65 15,399 15,581 66 15,743 15,929 67 16,084 16,274 68 16,426 16,620
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Points Current Adjusted CFR citation (where penalty dollar penalty dollar applicable) amounts amounts
69 16,768 16,966 70 17,112 17,314 30 CFR 723.15(b) (Assessment of separate violations for each day) ...... 2,566 2,596 30 CFR 724.14(b) (Individual civil penalties) ...... 17,112 17,314 30 CFR 845.14 ...... 1 68 69 2 137 139 3 206 208 4 274 277 5 342 346 6 411 416 7 479 485 8 546 552 9 616 623 10 685 693 11 752 761 12 821 831 13 888 898 14 958 969 15 1,028 1,040 16 1,095 1,108 17 1,163 1,177 18 1,233 1,248 19 1,301 1,316 20 1,369 1,385 21 1,438 1,455 22 1,506 1,524 23 1,574 1,593 24 1,642 1,661 25 1,711 1,731 26 2,054 2,078 27 2,396 2,424 28 2,736 2,768 29 2,949 2,984 30 3,423 3,463 31 3,764 3,808 32 4,106 4,155 33 4,449 4,502 34 4,791 4,848 35 5,133 5,194 36 5,475 5,540 37 5,819 5,888 38 6,160 6,233 39 6,502 6,579 40 6,843 6,924 41 7,188 7,273 42 7,529 7,618 43 7,870 7,963 44 8,213 8,310 45 8,555 8,656 46 8,898 9,003 47 9,239 9,348 48 9,583 9,696 49 9,924 10,041 50 10,266 10,387 51 10,607 10,732 52 10,952 11,081 53 11,294 11,427 54 11,635 11,773 55 11,979 12,121 56 12,320 12,466 57 12,661 12,811 58 13,003 13,157 59 13,347 13,505 60 13,688 13,850 61 14,030 14,196 62 14,373 14,543 63 14,716 14,890 64 15,058 15,236 65 15,399 15,581 66 15,743 15,929 67 16,084 16,274 68 16,426 16,620
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Points Current Adjusted CFR citation (where penalty dollar penalty dollar applicable) amounts amounts
69 16,768 16,966 70 17,112 17,314 30 CFR 845.15(b) (Assessment of separate violations for each day) ...... 2,566 2,596 30 CFR 846.14(b) (Individual civil penalties) ...... 17,112 17,314
In the chart above, there are no stated rounding formula and that the regulations. Thus, this rule has no effect numbers listed in the ‘‘Points’’ column increased CMPs apply only to violations on CMPs in States with SMCRA relative to 30 CFR 723.15(b), 30 CFR that occur after the date that the primacy. 724.14(b), 30 CFR 845.15(b), and 30 CFR increases take effect. II. Procedural Matters 846.14(b) because those regulatory Generally, OSMRE assigns points to a provisions do not set forth numbers of violation as described in 30 CFR 723.13 A. Regulatory Planning and Review points. For those provisions, the current and 845.13. The CMP owed is based on (Executive Orders 12866 and 13563) regulations only set forth the dollar the number of points received, ranging Executive Order 12866 provides that amounts shown in the chart in the from one point to 70 points. For the Office of Information and Regulatory ‘‘Current Penalty Dollar Amounts’’ example, under our existing regulations Affairs (OIRA) in the Office of column; the adjusted amounts, which in 30 CFR 845.14, a violation totaling 70 Management and Budget will review all we are adopting in this rule, are shown points would amount to a $17,112 CMP. significant rules. OIRA has determined in the ‘‘Adjusted Penalty Dollar To adjust this amount, we multiply that agency regulations exclusively Amounts’’ column. $17,112 by the 2020 inflation factor of implementing the annual inflation B. Calculation of Adjustments 1.01182, resulting in a raw adjusted adjustments are not significant, amount of $17,314.26. Because the 2015 provided they are consistent with the OMB issued guidance on the 2021 Act requires us to round any increase in OMB Memorandum. Because this final annual adjustments for inflation. See the CMP amount to the nearest dollar, rule exclusively implements the annual OMB Memorandum (December 23, in this case a violation of 70 points inflation adjustments, is consistent with 2020). The OMB Memorandum notes would amount to a new CMP of the OMB Memorandum, and will have that the 1990 Act defines ‘‘civil $17,314. Pursuant to the 2015 Act, the an annual impact of less than $100 monetary penalty’’ as ‘‘any penalty, fine, increases in this final rule apply to million, it is not significant under or other sanction that . . . is for a CMPs assessed after the date the Executive Order 12866. specific monetary amount as provided increases take effect, even if the Executive Order 13563 reaffirms the by Federal law; or . . . has a maximum associated violation predates the principles of Executive Order 12866 amount provided for by Federal law; applicable increase. while calling for improvements in the and . . . is assessed or enforced by an Nation’s regulatory system to promote C. Effect of the Rule in Federal Program agency pursuant to Federal law; and predictability, to reduce uncertainty, States and on Indian Lands . . . is assessed or enforced pursuant to and to use the best, most innovative, an administrative proceeding or a civil OSMRE directly regulates surface coal and least burdensome tools for action in the Federal courts . . . .’’ Id. mining and reclamation operations achieving regulatory ends. The at 2. It further instructs that agencies within a State or on Tribal lands if the Executive Order directs agencies to ‘‘are to adjust ‘the maximum civil State or Tribe does not obtain its own consider regulatory approaches that monetary penalty or the range of approved program pursuant to sections reduce burdens and maintain flexibility minimum and maximum civil monetary 503 or 710(j) of SMCRA, 30 U.S.C. 1253 and freedom of choice for the public penalties, as applicable, for each civil or 1300(j). The increases in CMPs where these approaches are relevant, monetary penalty by the cost-of-living contained in this rule will apply to the feasible, and consistent with regulatory adjustment.’ ’’ Id. The 1990 Act, as following Federal program States: objectives. Executive Order 13563 amended by the 2015 Act, and the OMB Arizona, California, Georgia, Idaho, emphasizes further that regulations Memorandum specify that the annual Massachusetts, Michigan, North must be based on the best available inflation adjustments are based on the Carolina, Oregon, Rhode Island, South science and that the rulemaking process percent change between the Consumer Dakota, Tennessee, and Washington. must allow for public participation and Price Index for all Urban Consumers The Federal programs for those States an open exchange of ideas. We have (the CPI–U) published by the appear at 30 CFR parts 903, 905, 910, developed this rule in a manner Department of Labor for the month of 912, 921, 922, 933, 937, 939, 941, 942, consistent with these requirements, to October in the year of the previous and 947, respectively. Under 30 CFR the extent permitted by statute. adjustment, and the October CPI–U for 750.18, the increases in CMPs also B. Regulatory Flexibility Act the preceding year. The recent OMB apply to Indian lands under the Federal Memorandum specified that the cost-of- program for Indian lands. The Regulatory Flexibility Act (RFA) living adjustment multiplier for 2021, requires an agency to prepare a not seasonally adjusted, is 1.01182 (the D. Effect of the Rule on Approved State regulatory flexibility analysis for all October 2020 CPI–U (260.388) divided Programs rules unless the agency certifies that the by the October 2019 CPI–U (257.346) = As a result of litigation, see In re rule will not have a significant 1.01182). OSMRE used this guidance to Permanent Surface Mining Regulation economic impact on a substantial identify applicable CMPs and calculate Litigation, No. 79–1144, Mem. Op. number of small entities. The RFA the required inflation adjustments. The (D.D.C. May 16, 1980), 19 Env’t. Rep. applies only to rules for which an 1990 Act, as amended by the 2015 Act, Cas. (BNA) 1477, State regulatory agency is required to first publish a specifies that any resulting increases in programs are not required to mirror all proposed rule. See 5 U.S.C. 603(a) and CMPs must be rounded according to a of the penalty provisions of our 604(a). The Federal Civil Penalties
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Inflation Adjustment Act Improvements in clear language and contain clear legal June 1, 1998, to write all rules in plain Act of 2015 requires agencies to adjust standards. language. This means that each rule we civil penalties annually for inflation publish must: H. Consultation With Indian Tribes ‘‘notwithstanding section 553 [of the (a) Be logically organized; (Executive Order 13175 and Administrative Procedure Act].’’ Thus, (b) Use the active voice to address Departmental Policy) no proposed rule will be published, and readers directly; the RFA does not apply to this The Department of the Interior strives (c) Use common, everyday words and rulemaking. to strengthen its government-to- clear language rather than jargon; government relationship with Tribes (d) Be divided into short sections and C. Small Business Regulatory through a commitment to consultation Enforcement Fairness Act sentences; and with Tribes and recognition of their (e) Use lists and tables wherever This rule is not a major rule under 5 right to self-governance and Tribal possible. U.S.C. 804(2), the Small Business sovereignty. We have evaluated this rule If you believe that we have not met Regulatory Enforcement Fairness Act. under the Department’s consultation these requirements in issuing this final This rule: policy, under Departmental Manual Part rule, please contact the individual listed (a) Will not have an annual effect on 512, Chapters 4 and 5, and under the in the FOR FURTHER INFORMATION the economy of $100 million or more. criteria in Executive Order 13175 and CONTACT section. Your comments (b) Will not cause a major increase in have determined that it has no costs or prices for consumers, should be as specific as possible in substantial direct effects on Federally- order to help us determine whether any individual industries, Federal, State, or recognized Tribes or Alaska Native local government agencies, or future revisions to the rule are Claims Settlement Act (ANCSA) necessary. For example, you should tell geographic regions. Corporations, and that consultation (c) Will not have significant adverse us the numbers of the sections or under the Department’s Tribal paragraphs that you find unclear, which effects on competition, employment, consultation policy is not required. investment, productivity, innovation, or sections or sentences are too long, the the ability of United States-based I. Paperwork Reduction Act sections where you feel lists or tables would be useful, etc. enterprises to compete with foreign- This rule does not contain based enterprises. information collection requirements, M. Data Quality Act D. Unfunded Mandates Reform Act and a submission to the Office of In developing this rule, we did not Management and Budget under the This rule does not impose an conduct or use a study, experiment, or Paperwork Reduction Act (44 U.S.C. unfunded mandate on State, local, or survey requiring peer review under the 3501 et seq.) is not required. We may Tribal governments, or the private Data Quality Act (Pub. L. 106–554). not conduct or sponsor, and you are not sector, of more than $100 million per N. Administrative Procedure Act year. The rule does not have a required to respond to, a collection of significant or unique effect on State, information unless it displays a We are issuing this final rule without local, or Tribal governments or the currently valid OMB control number. prior public notice or opportunity for private sector. A statement containing J. National Environmental Policy Act public comment. As discussed above, the Federal Civil Penalties Inflation the information required by the This rule does not constitute a major Unfunded Mandates Reform Act (2 Adjustment Act Improvements Act of Federal action significantly affecting the U.S.C. 1531 et seq.) is not required. 2015 requires agencies to publish quality of the human environment. A adjusted penalties annually. Under the E. Takings (Executive Order 12630) detailed statement under the National 2015 Act, the public procedure that the This rule does not effect a taking of Environmental Policy Act of 1969 Administrative Procedure Act generally private property or otherwise have (NEPA) is not required because the rule requires—notice, an opportunity for takings implications under Executive is covered by a categorical exclusion. comment, and a delay in the effective Order 12630. A takings implication This rule is excluded from the date—is not required for agencies to assessment is not required. requirement to prepare a detailed issue regulations implementing the statement because it is a regulation of an F. Federalism (Executive Order 13132) annual adjustments required by the administrative nature. (For further 2015 Act. See OMB Memorandum, M– Under the criteria in section 1 of information see 43 CFR 46.210(i).) We 21–10, at 3. Executive Order 13132, this rule does have also determined that the rule does not have sufficient federalism not involve any of the extraordinary List of Subjects implications to warrant the preparation circumstances listed in 43 CFR 46.215 30 CFR Part 723 of a federalism summary impact that would require further analysis statement. A federalism summary under NEPA. Administrative practice and impact statement is not required. procedure, Penalties, Surface mining, K. Effects on Energy Supply, Underground mining. G. Civil Justice Reform (Executive Order Distribution, and Use (Executive Order 12988) 13211) 30 CFR Part 724 This rule complies with the This rule is not a significant energy Administrative practice and requirements of Executive Order 12988. action under the definition in Executive procedure, Penalties, Surface mining, Specifically, this rule: Order 13211. A Statement of Energy Underground mining. (a) Meets the criteria of section 3(a) Effects is not required. 30 CFR Part 845 requiring that all regulations be reviewed to eliminate errors and L. Clarity of This Regulation Administrative practice and ambiguity and be written to minimize We are required by Executive Orders procedure, Law enforcement, Penalties, litigation; and 12866 (section 1(b)(12)), 12988 (section Reporting and recordkeeping (b) Meets the criteria of section 3(b)(2) 3(b)(1)(B)), and 13563 (section 1(a)), and requirements, Surface mining, requiring that all regulations be written by the Presidential Memorandum of Underground mining.
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30 CFR Part 846 TABLE 1 TO § 723.14—Continued Authority: 28 U.S.C. 2461, 30 U.S.C. 1201 et seq., 31 U.S.C. 3701, Pub. L. 100–202, and Administrative practice and Pub. L. 100–446. procedure, Penalties, Surface mining, Points Dollars Underground mining. ■ 7. Revise the table in § 845.14 to read 44 ...... 8,310 as follows: Glenda H. Owens, 45 ...... 8,656 46 ...... 9,003 Deputy Director, Office of Surface Mining § 845.14 Determination of amount of 47 ...... 9,348 Reclamation and Enforcement. penalty. 48 ...... 9,696 * * * * * For the reasons given in the preamble, 49 ...... 10,041 the Department of the Interior amends 50 ...... 10,387 TABLE 1 TO § 845.14 30 CFR parts 723, 724, 845, and 846 as 51 ...... 10,732 set forth below. 52 ...... 11,081 53 ...... 11,427 Points Dollars PART 723—CIVIL PENALTIES 54 ...... 11,773 55 ...... 12,121 1 ...... 69 ■ 56 ...... 12,466 2 ...... 139 1. The authority citation for part 723 3 ...... 208 continues to read as follows: 57 ...... 12,811 58 ...... 13,157 4 ...... 277 Authority: 28 U.S.C. 2461, 30 U.S.C. 1201 59 ...... 13,505 5 ...... 346 6 ...... 416 et seq., and 31 U.S.C. 3701. 60 ...... 13,850 7 ...... 485 ■ 61 ...... 14,196 2. Revise the table in § 723.14 to read 8 ...... 552 62 ...... 14,543 as follows: 9 ...... 623 63 ...... 14,890 10 ...... 693 § 723.14 Determination of amount of 64 ...... 15,236 11 ...... 761 penalty. 65 ...... 15,581 12 ...... 831 66 ...... 15,929 * * * * * 13 ...... 898 67 ...... 16,274 14 ...... 969 68 ...... 16,620 ABLE TO 15 ...... 1,040 T 1 § 723.14 69 ...... 16,966 16 ...... 1,108 70 ...... 17,314 Points Dollars 17 ...... 1,177 18 ...... 1,248 1 ...... 69 ■ 3. In § 723.15, revise introductory text 19 ...... 1,316 2 ...... 139 of paragraph (b) to read as follows: 20 ...... 1,385 3 ...... 208 21 ...... 1,455 4 ...... 277 § 723.15 Assessment of separate 22 ...... 1,524 5 ...... 346 violations for each day. 23 ...... 1,593 6 ...... 416 * * * * * 24 ...... 1,661 7 ...... 485 (b) In addition to the civil penalty 25 ...... 1,731 8 ...... 552 26 ...... 2,078 9 ...... 623 provided for in paragraph (a) of this 27 ...... 2,424 10 ...... 693 section, whenever a violation contained 28 ...... 2,768 11 ...... 761 in a notice of violation or cessation 29 ...... 2,984 12 ...... 831 order has not been abated within the 30 ...... 3,463 13 ...... 898 abatement period set in the notice or 31 ...... 3,808 14 ...... 969 order or as subsequently extended 32 ...... 4,155 15 ...... 1,040 pursuant to section 521(a) of the Act, 30 33 ...... 4,502 16 ...... 1,108 U.S.C. 1271(a), a civil penalty of not less 34 ...... 4,848 17 ...... 1,177 than $2,596 will be assessed for each 35 ...... 5,194 18 ...... 1,248 36 ...... 5,540 19 ...... 1,316 day during which such failure to abate 37 ...... 5,888 20 ...... 1,385 continues, except that: 38 ...... 6,233 21 ...... 1,455 * * * * * 39 ...... 6,579 22 ...... 1,524 40 ...... 6,924 23 ...... 1,593 PART 724—INDIVIDUAL CIVIL 41 ...... 7,273 24 ...... 1,661 PENALTIES 42 ...... 7,618 25 ...... 1,731 43 ...... 7,963 26 ...... 2,078 ■ 4. The authority citation for part 724 44 ...... 8,310 27 ...... 2,424 continues to read as follows: 45 ...... 8,656 28 ...... 2,768 46 ...... 9,003 29 ...... 2,984 Authority: 28 U.S.C. 2461, 30 U.S.C. 1201 47 ...... 9,348 30 ...... 3,463 et seq., and 31 U.S.C. 3701. 48 ...... 9,696 31 ...... 3,808 ■ 5. In § 724.14, revise the first sentence 49 ...... 10,041 32 ...... 4,155 of paragraph (b) to read as follows: 50 ...... 10,387 33 ...... 4,502 51 ...... 10,732 34 ...... 4,848 § 724.14 Amount of individual civil penalty. 52 ...... 11,081 35 ...... 5,194 53 ...... 11,427 36 ...... 5,540 * * * * * 54 ...... 11,773 37 ...... 5,888 (b) The penalty will not exceed 55 ...... 12,121 38 ...... 6,233 $17,314 for each violation. * * * 56 ...... 12,466 39 ...... 6,579 57 ...... 12,811 40 ...... 6,924 PART 845—CIVIL PENALTIES 58 ...... 13,157 41 ...... 7,273 59 ...... 13,505 42 ...... 7,618 ■ 6. The authority citation for part 845 60 ...... 13,850 43 ...... 7,963 continues to read as follows: 61 ...... 14,196
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TABLE 1 TO § 845.14—Continued ACTION: Final rule. the ‘‘2021 final rule’’ (Ref. 1). This action effectuates the vacatur of the final Points Dollars SUMMARY: The Environmental Protection rule ordered by the United States Agency (EPA) is removing the District Court for the District of Montana 62 ...... 14,543 regulatory provisions associated with in Environmental Defense Fund et al. v. 63 ...... 14,890 the final rule Strengthening EPA, No. 21–cv–00003 (D. Mon. Feb. 1, 64 ...... 15,236 Transparency in Pivotal Science 2021) (EDF v. EPA). 65 ...... 15,581 Underlying Significant Regulatory Section 553 of the Administrative 66 ...... 15,929 Actions and Influential Scientific 67 ...... 16,274 Procedure Act, 5 U.S.C. 553(b)(B), Information. This action effectuates the provides that, when an agency for good 68 ...... 16,620 vacatur of the final rule ordered by the 69 ...... 16,966 cause finds that notice and public 70 ...... 17,314 United States District Court for the procedure are impracticable, District of Montana. It is also responsive unnecessary or contrary to the public to the Executive order entitled ■ 8. In § 845.15, revise introductory text interest, the agency may issue a rule ‘‘Protecting Public Health and the of paragraph (b) to read as follows: without providing notice and an Environment and Restoring Science to opportunity for public comment. EPA § 845.15 Assessment of separate Tackle the Climate Crisis,’’ signed on has determined that there is good cause violations for each day. January 20, 2021. under section 553(b)(B) to issue this * * * * * DATES: This final rule is effective May final rule without prior proposal and (b) In addition to the civil penalty 28, 2021. opportunity for comment because this provided for in paragraph (a) of this ADDRESSES: The EPA has established a action undertakes the ministerial tasks section, whenever a violation contained docket for this action under Docket ID of removing regulatory provisions in a notice of violation or cessation No. EPA–HQ–OA—2018–0259 All vacated by the court in EDF v. EPA (Ref. order has not been abated within the documents in the docket are listed on 2). abatement period set in the notice or the http://www.regulations.gov website. As a matter of law, the order issued order or as subsequently extended Although listed in the index, some by the court in EDF v. EPA on February pursuant to section 521(a) of the Act, 30 information may not be publicly 1, 2021 vacated the 2021 final rule. It is, U.S.C. 1271(a), a civil penalty of not less available, e.g., CBI or other information therefore, unnecessary to provide notice than $2,596 will be assessed for each whose disclosure is restricted by statute. and an opportunity for comment on this day during which such failure to abate Certain other material, such as action, which carries out the court’s continues, except that: copyrighted material, is not placed on orders by removing the 2021 final rule * * * * * the internet and will be publicly from 40 CFR part 30. available only in hard copy form. In addition, EPA finds that it has good PART 846—INDIVIDUAL CIVIL Publicly available docket materials are cause to make these revisions PENALTIES available electronically through http:// immediately effective upon publication www.regulations.gov. under section 553(d) of the ■ 9. The authority citation for part 846 Administrative Procedure Act, 5 U.S.C. FOR FURTHER INFORMATION CONTACT: continues to read as follows: 553(d). Section 553(d) provides that Bennett Thompson, Office of Science final rules shall not become effective Authority: 28 U.S.C. 2461, 30 U.S.C. 1201 Advisor, Policy and Engagement et seq., and 31 U.S.C. 3701. until 30 days after publication in the (8104R), Environmental Protection Federal Register ‘‘except . . . as ■ 10. In § 846.14, revise the first Agency, 1200 Pennsylvania Ave. NW, otherwise provided by the agency for sentence of paragraph (b) to read as Washington, DC 20460; telephone good cause. ’’ The purpose of this follows: number: (202) 564–1071; email address: provision is to ‘‘give affected parties a [email protected]. § 846.14 Amount of individual civil penalty. reasonable time to adjust their behavior SUPPLEMENTARY INFORMATION: before the final rule takes effect.’’ * * * * * Omnipoint Corp. v. Fed. Commc’n (b) The penalty will not exceed $17, I. General Information Comm’n, 78 F.3d 620, 630 (D.C. Cir. 314 for each violation. * * * A. Does this action apply to me? 1996); see also United States v. [FR Doc. 2021–11301 Filed 6–1–21; 8:45 am] This action removes requirements for Gavrilovic, 551 F.2d 1099, 1104 (8th Cir. BILLING CODE 4310–05–P how the EPA considers the availability 1977) (quoting legislative history). Thus, of dose-response data underlying its in determining whether good cause pivotal science used in its significant exists to waive the 30-day delay, an ENVIRONMENTAL PROTECTION regulatory actions and influential agency should, ‘‘balance the necessity AGENCY scientific information. The EPA for immediate implementation against recognizes any entity interested in principles of fundamental fairness 40 CFR Part 30 submitting studies to EPA or how EPA which require that all affected persons [EPA–HQ–OA–2018–0259; FRL–10024–32– evaluates and considers science in EPA be afforded a reasonable amount of time ORD] regulations may be interested in this to prepare for the effective date of its final rule. ruling.’’ Gavrilovic, 551 F.2d at 1105. RIN 2080–AA15 EPA has determined that there is good B. Why is EPA issuing this action? Strengthening Transparency in Pivotal cause under section 553(d) for making Science Underlying Significant The EPA is removing the regulatory this final rule effective immediately Regulatory Actions and Influential provisions associated with the final rule because this action merely implements Scientific Information; Implementation ‘‘Strengthening Transparency in Pivotal the court order vacating the 2021 final of Vacatur Science Underlying Significant rule. Delaying the effectiveness of this Regulatory Actions and Influential rule further would prolong the period of AGENCY: Environmental Protection Scientific Information’’ (86 FR 469, time between the change in the law (i.e., Agency (EPA). January 6, 2021), herein referred to as the court’s vacatur) and the
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corresponding update to the regulations, studies from the requirements of the Court for the District of Montana, Order without providing the corresponding rule. (February 1, 2021), available at https:// benefit underlying the 30-day delay. www.epa.gov/sites/production/files/ B. Litigation, Vacatur and Court Minimizing that time period would 2021-02/documents/vacatur_and_ Mandate reduce the possibility of confusion for remand_final_order_case_421-cv-00003- the public. Accordingly, EPA is making On January 11, 2021 the plaintiffs bmm.pdf. this rule effective immediately upon Environmental Defense Fund and others 3. EDF vs. EPA, Case No. 4:21–cv– publication. (EDF) filed a complaint in the U.S. 00003–BMM, United States District District Court for the District of Montana Court for the District of Montana, C. What is the Agency’s authority for (Ref. 3). Among other allegations, EDF Complaint (January 11, 2021). taking this action? contended that the 2021 final rule was 4. EDF vs. EPA, Case No. 4:21–cv– EPA promulgated the 2021 final rule substantive and therefore unlawful to 00003–BMM, United States District pursuant to its housekeeping authority, promulgate under the EPA’s Court for the District of Montana, Order which EPA gained through the housekeeping authority, which only on Partial Motion (January 27, 2021). Reorganization Plan No. 3 of 1970, 84 permits promulgation of procedural 5. EDF vs. EPA, Case No. 4:21–cv– Stat. 2086 (July 9, 1970), which created rules. The plaintiffs further argued that 00003–BMM–JTJ, United States District the EPA. The Reorganization Plan the EPA lacked good cause to make the Court for the District of Montana, established the Administrator as ‘‘head rule effective immediately. On January Defendants’ Unopposed Motion for of the agency,’’ transferred functions 27, 2021, the court issued a partial Vacatur and Remand (January 31, 2021). summary judgment ruling that the 2021 and authorities of various agencies and V. Statutory and Executive Orders final rule was substantive because it Executive departments to the EPA, Reviews including the authority to promulgate failed to provide the EPA with regulations to carry out the transferred procedural direction but instead A. Executive Order 12866: Regulatory functions. including a housekeeping narrowly limited the agency’s discretion Planning and Review and Executive authority to promulgate procedural, but to consider certain scientific research Order 13563: Improving Regulation and not substantive, rules. However, the rule when conducting future rulemakings. Regulatory Review was vacated and remanded in light of The court reasoned that by determining This action is a significant regulatory the court’s conclusion that the 2021 how the Agency weighs particular action that was submitted to the Office final rule constituted a substantive rule, scientific evidence, the 2021 final rule of Management and Budget (OMB) for and therefore the EPA lacked determined outcomes rather than review. Any changes made in response authorization to promulgate the 2021 process. The court further ruled that to OMB recommendations have been final rule pursuant to its housekeeping EPA did not have good cause to make documented in the docket. The EPA authority. This action to implement the the 2021 final rule effective immediately does not anticipate that this rulemaking vacatur is being taken pursuant to the and held that the effective date for the will have an economic impact on court’s order (Ref. 2). rule was 30 days after publication, or regulated entities. February 5, 2021 (Ref. 4). Based on the II. Background of the Vacated 2021 district court’s conclusion that the final B. Paperwork Reduction Act (PRA) Final Rule rule constituted a substantive rather This action does not contain any A. Summary of the Key Requirements in than a procedural rule, EPA lacked information collection activities and the 2021 Final Rule authority to promulgate the final rule therefore does not impose an under its housekeeping authority. Given The 2021 final rule established how information collection burden under the the court’s decision, the EPA filed an the EPA would have considered the PRA. unopposed motion to vacate and availability of dose-response data remand the rule (Ref. 5). On February 1, C. Regulatory Flexibility Act (RFA) underlying pivotal science used in its 2021, the court granted the motion This action is not subject to the RFA. significant regulatory actions and vacating the 2021 final rule and The RFA applies only to rules subject to influential scientific information (Ref. remanding it to the EPA (Ref. 2). This notice and comment rulemaking 1). When promulgating significant action effectuates the court order requirements under the Administrative regulatory actions or developing vacating the 2021 final rule. Procedure Act (APA), 5 U.S.C. 553, or influential scientific information for any other statute. This rule is not which the conclusions are driven by the III. Effective Date subject to notice and comment quantitative relationship between the This final rule will become effective requirements because the Agency has amount of dose or exposure to a upon publication in the Federal invoked the APA ‘‘good cause’’ pollutant, contaminant, or substance Register. exemption under 5 U.S.C. 553(b). and an effect, the 2021 final rule would have required that the EPA give greater IV. References D. Unfunded Mandates Reform Act consideration to studies where the 1. U.S. EPA. Strengthening (UMRA) underlying dose-response data are Transparency in Pivotal Science This action does not contain any available in a manner sufficient for Underlying Significant Regulatory unfunded mandate as described in independent validation. The 2021 final Actions and Influential Scientific UMRA, 2 U.S.C. 1531–1538, and does rule also would have required the EPA Information; Rule, 86 FR 469 (January 6, not significantly or uniquely affect small to identify and make publicly available 2021) (FRL–10019–07–ORD), available governments. The action imposes no the science that serves as the basis for at https://www.federalregister.gov/ enforceable duty on any state, local or informing a significant regulatory action documents/2021/01/06/2020-29179/ tribal governments or the private sector. at the proposed rule stage to the extent strengthening-transparency-in-pivotal- practicable; included additional science-underlying-significant- E. Executive Order 13132: Federalism requirements for the peer review of regulatory-actions-and. This action does not have federalism pivotal science; and provided criteria 2. EDF vs. EPA, Case No. 4:21–cv– implications. It will not have substantial for the Administrator to exempt certain 00003–BMM, United States District direct effects on the states, on the
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relationship between the National List of Subjects in 40 CFR Part 30 the https://www.regulations.gov Government and the states, or on the Environmental protection, website. Although listed in the index, distribution of power and Administrative practice and procedure, some information is not publicly responsibilities among the various Reporting and recordkeeping available, i.e., confidential business levels of government. requirements. information (CBI) or other information whose disclosure is restricted by statute. F. Executive Order 13175: Consultation Michael S. Regan, Certain other material, such as and Coordination With Indian Tribal Administrator. copyrighted material, is not placed on Governments the internet and will be publicly PART 30—[REMOVED AND This action does not have tribal available only in hard copy form. RESERVED] implications as specified in Executive Publicly available docket materials are Order 13175. Thus, Executive Order ■ available through https:// For the reasons set forth in the www.regulations.gov or please contact 13175 does not apply to this action. preamble and under the authority of the the person identified in the FOR FURTHER court order in Environmental Defense G. Executive Order 13045: Protection of INFORMATION CONTACT section for Children From Environmental Health Fund et al. v. EPA, No. 21–cv–00003 (D. additional information. Mon. Feb. 1, 2021) (EDF v. EPA), the Risks and Safety Risks FOR FURTHER INFORMATION CONTACT: EPA removes and reserves 40 CFR part The EPA interprets Executive Order 30. Wendy Vit, Environmental Protection 13045 as applying only to those [FR Doc. 2021–11317 Filed 5–28–21; 8:45 am] Agency, Region 7 Office, Air Quality Planning Branch, 11201 Renner regulatory actions that concern BILLING CODE 6560–50–P environmental health or safety risks that Boulevard, Lenexa, Kansas 66219 at the EPA has reason to believe may (913) 551–7697, or by email at disproportionately affect children, per ENVIRONMENTAL PROTECTION [email protected]. the definition of ‘‘covered regulatory AGENCY SUPPLEMENTARY INFORMATION: action’’ in section 2–202 of the Throughout this document ‘‘we,’’ ‘‘us,’’ Executive order. This action is not 40 CFR Part 52 and ‘‘our’’ refer to the EPA. This section subject to Executive Order 13045 [[EPA–R07–OAR–2019–0711; FRL–10024– provides additional information by because it does not concern an 22–Region 7] addressing the following: environmental health risk or safety risk. Table of Contents Air Plan Approval; Missouri; H. Executive Order 13211: Actions Construction Permits By Rule I. What is being addressed in this action? Concerning Regulations That II. Have the requirements for approval of the Significantly Affect Energy Supply, AGENCY: Environmental Protection SIP revision been met? Distribution or Use Agency (EPA). III. The EPA’s Response to Comments IV. What action is the EPA taking? ACTION: Final rule. This action is not a ‘‘significant V. Incorporation by Reference VI. Statutory and Executive Order Reviews energy action’’ within the meaning of SUMMARY: The Environmental Protection Executive Order 13211. It is not likely Agency (EPA) is approving selected I. What is being addressed in this to have a significant adverse effect on revisions to a Missouri State rule in the action? the supply, distribution or use of State Implementation Plan (SIP) that energy, and it has not otherwise been The EPA is taking final action to establishes a process and standardized approve selected revisions to 10 Code of designated as a significant energy action conditions under which certain types of by the Administrator of the Office of State Regulations (CSR) 10–6.062 in the sources can construct and operate in Missouri SIP. The revised State rule was Information and Regulatory Affairs lieu of going through the State’s formal (OIRA). submitted by the State of Missouri on construction permitting process. The March 7, 2019 and became effective on I. National Technology Transfer and EPA is approving rule revisions that March 30, 2019. The submission Advancement Act (NTTAA) include modifications to the operating requested revisions to the SIP that conditions for crematories and animal include: (1) Expanding the materials This rulemaking does not involve incinerators, adjustments to sulfur that crematories and animal incinerators technical standards. limits on Number 2 diesel oil for are allowed to burn from 100% human consistency with Federal limits, J. Executive Order 12898: Federal and animal remains to 90% human and removal of ‘‘restrictive’’ words, addition Actions To Address Environmental animal remains with up to 10% illegal of definitions specific to the rule, and Justice in Minority Populations and and waste pharmaceutical drugs, (2) other minor edits. At this time, the Low-Income Populations modifying operating conditions for agency is not acting on revisions that crematories and animal incinerators, (3) The EPA believes that this action is conflict with an EPA regulation related adjusting sulfur limits on Number 2 not subject to Executive Order 12898 (59 to disposal of pharmaceuticals collected diesel oil for consistency with Federal FR 7629, February 16, 1994) because it in drug take-back programs. The EPA’s limits, (4) removing ‘‘restrictive’’ words, does not establish an environmental approval of the State’s other rule (5) adding definitions specific to the health or safety standard. revisions is being done in accordance rule, and (6) making other minor edits. with the requirements of the Clean Air K. Congressional Review Act (CRA) The EPA is finalizing this action Act (CAA). because certain revisions to this State This action is subject to the CRA, and DATES: This final rule is effective on July rule meet the applicable requirements of the EPA will submit a rule report to 2, 2021. the Clean Air Act. EPA is not acting on each House of the Congress and to the ADDRESSES: The EPA has established a the State rule revisions that would allow Comptroller General of the United docket for this action under Docket ID crematories and animal incinerators to States. This action is not a ‘‘major rule’’ No. EPA–R07–OAR–2019–0711. All burn up to 10% by weight of illegal and as defined by 5 U.S.C. 804(2). documents in the docket are listed on waste pharmaceuticals.
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II. Have the requirements for approval pharmaceutical drugs may be subject to sources that rely on manufacturer’s of the SIP revision been met? other federal regulations under sections specifications, and it is incomplete The State’s submission has met the 112 or 129 of the Clean Air Act or the because it does not specify what public notice requirements for SIP Resource Conservation and Recovery pollutants must be demonstrated to submissions in accordance with 40 CFR Act (RCRA) depending on their meet the 99.9% combustion efficiency. 51.102. The submission also satisfied contents. Finally, the commenter states In addition, the commenter states that the completeness criteria of 40 CFR part the EPA failed to analyze whether the compliance provisions for stack tests 51, appendix V. The State provided allowing crematories and animal and opacity limit requirements fail to public notice of the revisions from incinerators to burn pharmaceuticals identify the appropriate test methods. would increase hazardous air pollutant August 1, 2018, to October 4, 2018, and The commenter says the rule also lacks emissions to such an extent that the held a public hearing on September 27, provisions that apply to owners that source would exceed the major source 2018. The State received and addressed follow manufacturers specifications. threshold and therefore not be eligible four comments from three sources, Finally, the commenter states that the for the construction permit-by-rule per including the EPA. In addition, as recordkeeping and reporting provisions 10 CSR 10–6.062(1)(A). explained in the proposal (85 FR 3304, are inadequate. Response to Comment 1: Because of Response to Comment 2: To apply for January 21, 2020) and in more detail in the issues raised in these comments, the a Missouri permit-by-rule, an applicant the EPA’s technical support document EPA is not acting on the revised completes an application. The (TSD), which is part of this docket, the language that would allow crematories application form contains the revision meets the substantive SIP and animal incinerators to burn up to conditions of operation, including requirements of the CAA, including 10% by weight of illegal and waste methods of compliance. The applicant section 110 and the implementing pharmaceuticals. Missouri added these signs the form to accept the conditions. regulations. provisions as a means of disposing This becomes the final permit issued by III. The EPA’s Responses to Comments materials collected from drug take-back the Missouri Department of Natural events and programs. However, the 1 The public comment period on the Resources. It is EPA’s understanding revisions in the State’s rule conflict with that Missouri is in the process of EPA’s proposed rule opened January 21, requirements related to drug take-back 2020, the date of its publication in the updating the application form to reflect programs established by the EPA’s final the changes made in this revision to the Federal Register, and closed on regulation, Management Standards for February 20, 2020. During this period, State rule. Hazardous Waste Pharmaceuticals and The revised rule language clearly the EPA received comments from two Amendment to the P075 Listing for commenters, which are addressed specifies the following two compliance Nicotine (84 FR 5816, February 22, demonstration options for crematories below. 2019). Specifically, the requirements for Comment 1: One commenter and animal incinerators: (1) Operate in drug take-back programs codified at 40 accordance with manufacturer’s submitted several comments regarding CFR 266.506, list five types of permitted revisions in 10 CSR 10–6.062 paragraph specifications or (2) demonstrate a combustors that must be used to destroy 99.9% combustion efficiency. Higher (3)(B)2. and subparagraph (3)(B)2.A. that waste pharmaceuticals, and would expand the materials which combustion efficiencies minimize the crematoriums and animal incinerators products of incomplete combustion and crematories and animal incinerators are are not included on the list for this allowed to burn from 100% human and associated air pollutants. purpose. The EPA explains in the The EPA reviewed a number of animal remains to 90% human and preamble of the final hazardous waste Missouri construction permits for animal remains with up to 10% illegal pharmaceuticals rule that crematories crematories and animal incinerators that and waste pharmaceutical drugs. The and animal incinerators are not allowed have been issued through the State’s comments raise multiple approvability to be used for disposal of materials formal construction permitting process issues. First, the commenter states the collected from drug take-back programs in accordance with the SIP-approved EPA failed to provide any analysis or because these units typically do not use rule, 10 CSR 10–6.060 Construction basis for its assertion that allowing air pollution control devices to limit Permits Required. The revised crematories and animal incinerators to toxic air pollutants such as mercury and compliance options and enforceability burn up to 10% pharmaceuticals would dioxins and furans. In addition to the provisions in 10 CSR 10–6.062 for not impact the stringency of the SIP or hazardous waste pharmaceuticals rule, crematories and animal incinerators are air quality. Second, the commenter there may be other state and federal consistent with the language in the states the EPA applied faulty logic in regulations applicable to crematories permits for these units that have been relying on the Commercial and and animal incinerators. Missouri has issued under 10 CSR 10–6.060. Industrial Solid Waste Incinerator represented to the EPA that it is in the The rule language regarding opacity (CISWI) rule’s exemption for process of revising 10 CSR 10–6.062 to and reporting and recordkeeping pathological waste incinerators that remove the problematic language requirements was not materially revised burn 90% pathological waste. The allowing crematories and animal from the provisions in the previously commenter contends that the 90% incinerators to burn illegal and waste approved SIP. The EPA did not intend cutoff in the CISWI rule is not a 10% pharmaceutical drugs. As evidence of to solicit comments on the rule catch-all burn-what-you-will provision, Missouri’s rulemaking to revise 10 CSR requirements that the state did not rather it is intended to distinguish those 10–6.062, the rulemaking report materially change in this rulemaking. units designed and used primarily for summarizing the changes Missouri The agency initially approved 10 CSR pathological material destruction from plans to make is included in this docket. 10–6.062 in 2006 (71 FR 38997, July 11, other units. There is no CISWI rule Comment 2: The commenter states 2006), and the opacity and reporting provision that allows for the other 10% that Missouri’s rule lacks necessary and recordkeeping provisions have not of the material to be illegal and waste enforceability provisions. For instance, pharmaceutical drugs. Third, the the commenter states that the rule is not 1 Missouri’s permit-by-rule application forms may commenter said the EPA’s analysis fails clear whether the demonstration of be found here https://dnr.mo.gov/forms/ to recognize that incineration of 99.9% combustion efficiency applies to #AirPollution.
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been revised since then. Courts have (2) are the same definitions included in Therefore, these materials have been indicated that actions, such as the the SIP-approved 10 CSR 10–6.020 approved by the EPA for inclusion in action taken on this rule, do not reopen Definitions and Common Reference the State Implementation Plan, have issues on which the agency was not Tables, and therefore there is no change been incorporated by reference by EPA seeking comment. Sierra Club v. EPA, to the stringency of the SIP. As into that plan, are fully federally 551 F.3d 1019, 1024 (D.C. Cir. 2008) explained above, the EPA did not intend enforceable under sections 110 and 113 (citing Am. Iron & Steel Inst. v. EPA, to solicit comments on the portions of of the CAA as of the effective date of the 886 F.2d 390, 397 (D.C. Cir. 1989)) the rule that the State did not materially final rulemaking of the EPA’s approval, (‘‘Under the reopening doctrine, the change in this rulemaking. Furthermore, and will be incorporated by reference in time for seeking review starts anew the addition of these general definitions the next update to the SIP compilation.3 where the agency reopens an issue by in section (2) of the rule does not impact VI. Statutory and Executive Order holding out the unchanged section as a any of the rule’s conditions or Reviews proposed regulation, offering an requirements. The provisions in the explanation for its language, soliciting permit-by-rule for each source category Under the CAA, the Administrator is comments on its substance, and covered by 10 CSR 10–6.062 contain required to approve a SIP submission responding to the comments in greater specificity related to usage of the that complies with the provisions of the promulgating the regulation in its final terms. Act and applicable Federal regulations. form.’’); Appalachian Power v. EPA, 251 Comment 4: An anonymous 42 U.S.C. 7410(k); 40 CFR 52.02(a). F.3d 1026 (D.C. Cir. 2004).2 There are no commenter recommended that the Thus, in reviewing SIP submissions, the known issues with the enforcement of revisions not be approved. The EPA’s role is to approve state choices, this rule. Therefore, the EPA is commenter stated that instead more provided that they meet the criteria of finalizing this SIP revision. stringent protections and regulations the CAA. Accordingly, this action Comment 3: The commenter stated with penalties should be put in place to merely approves state law as meeting that the EPA failed to provide a basis for better protect the environment and Federal requirements and does not proposing to approve the addition of public. impose additional requirements beyond eleven (11) definitions in section (2) of Response to Comment 4: The permit- those imposed by state law. For that the rule. The commenter states it by-rule for each source category in reason, this action: appears that the EPA is assuming that • subsection (3)(B) of the rule includes Is not a significant regulatory action previously approved definitions can be enforcement provisions. In addition, subject to review by the Office of moved into the rule. The commenter Management and Budget under finds that it is unclear why the subsection (3)(C) includes provisions for revoking a permit-by-rule and penalties Executive Orders 12866 (58 FR 51735, definition of ‘‘incinerator’’ was moved October 4, 1993) and 13563 (76 FR 3821, into this rule because it covers refuse for non-compliance, and section (4) includes reporting and recordkeeping January 21, 2011); material and open burning. The • Does not impose an information requirements. There are no known commenter also states that the collection burden under the provisions issues with the enforcement of this rule. definition of ‘‘construction’’ moved into of the Paperwork Reduction Act (44 For the reasons stated above and in the this rule does not match the definition U.S.C. 3501 et seq.); of construction in the permitting rule proposal, the EPA has determined that • Is certified as not having a that the owner/operator seeks the rule revisions comply with the significant economic impact on a exemption from [10 CSR 10–6.060] and requirements of the Clean Air Act. substantial number of small entities the reason for the difference is not IV. What action is the EPA taking? under the Regulatory Flexibility Act (5 explained. Additionally, the commenter U.S.C. 601 et seq.); notes that the definition of ‘‘printing’’ The EPA is approving all revisions • Does not contain any unfunded differs from the section that covers from the March 30, 2019, State effective mandate or significantly or uniquely printing operations (paragraph (3)(B)1.), date version of 10 CSR 10–6.062 into the affect small governments, as described which is more encompassing. Finally, Missouri SIP, except for revisions to in the Unfunded Mandates Reform Act the commenter states the definition of paragraph (3)(B)2. and subparagraph of 1995 (Pub. L. 104–4); ‘‘closed container’’ speaks to (3)(B)2.A. We are taking final action • Does not have federalism requirements regarding spilling and after consideration of the comments implications as specified in Executive leaking the contents and fails to require received from two commenters on the Order 13132 (64 FR 43255, August 10, that the closed container prevents notice of proposed rulemaking. 1999); • volatile organic compound (VOC) V. Incorporation by Reference Is not an economically significant fugitives. regulatory action based on health or Response to Comment 3: As explained In this document, the EPA is safety risks subject to Executive Order in detail in the TSD, the definitions finalizing regulatory text that includes 13045 (62 FR 19885, April 23, 1997); inserted into 10 CSR 10–6.062 section incorporation by reference. In • Is not a significant regulatory action accordance with requirements of 1 CFR subject to Executive Order 13211 (66 FR 2 ARTBA v. EPA, 588 F.3d 1109 at 1114 (rewriting 51.5, the EPA is finalizing the 28355, May 22, 2001); a rule in plain language does not reopen); Kennecott incorporation by reference of the • Is not subject to requirements of the Utah Copper Corp. v. U.S. Dept. of the Interior, 88 F.3d 1191 at 1220 (no reopener where agency Missouri Regulations described in the National Technology Transfer and ‘‘merely re-worded the provision’’ with ‘‘no amendments to 40 CFR part 52 set forth Advancement Act (NTTA) because this meaningful difference’’); Columbia Falls Aluminum below. The EPA has made, and will rulemaking does not involve technical Co. v. EPA, 139 F.3d 914, 920 (D.C. Cir. 1998) continue to make, these materials standards; and (dictum) (no reopener where agency action ‘‘merely • republished an existing rule’’); cf. also Pub. Citizen generally available through Does not provide EPA with the v. Nuclear Regulatory Com., 901 F.2d 147, 150 (D.C. www.regulations.gov and at the EPA discretionary authority to address, as Cir. 1990) (‘‘where an agency’s actions show that it Region 7 Office (please contact the appropriate, disproportionate human has not merely republished an existing rule in order person identified in the FOR FURTHER to propose minor changes to it, but has health or environmental effects, using reconsidered the rule and decided to keep it in INFORMATION CONTACT section of this effect, challenges to the rule are in order’’). preamble for more information). 3 62 FR 27968, May 22, 1997.
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practicable and legally permissible General of the United States prior to Intergovernmental relations, Lead, methods, under Executive Order 12898 publication of the rule in the Federal Nitrogen dioxide, Ozone, Particulate (59 FR 7629, February 16, 1994). Register. A major rule cannot take effect matter, Reporting and recordkeeping In addition, the SIP is not approved until 60 days after it is published in the requirements, Sulfur oxides, Volatile to apply on any Indian reservation land Federal Register. This action is not a organic compounds. or in any other area where the EPA or ‘‘major rule’’ as defined by 5 U.S.C. Dated: May 21, 2021. an Indian tribe has demonstrated that a 804(2). Edward H. Chu, tribe has jurisdiction. In those areas of Under section 307(b)(1) of the CAA, Acting Regional Administrator, Region 7. Indian country, the rule does not have petitions for judicial review of this tribal implications and will not impose action must be filed in the United States For the reasons stated in the substantial direct costs on tribal Court of Appeals for the appropriate preamble, the EPA amends 40 CFR part governments or preempt tribal law as circuit by August 2, 2021. Filing a 52 as set forth below: specified by Executive Order 13175 (65 petition for reconsideration by the PART 52—APPROVAL AND FR 67249, November 9, 2000). Administrator of this final rule does not PROMULGATION OF The Congressional Review Act, 5 affect the finality of this action for the IMPLEMENTATION PLANS U.S.C. 801 et seq., as added by the Small purposes of judicial review nor does it Business Regulatory Enforcement extend the time within which a petition ■ 1. The authority citation for part 52 Fairness Act of 1996, generally provides for judicial review may be filed, and continues to read as follows: that before a rule may take effect, the shall not postpone the effectiveness of agency promulgating the rule must such rule or action. This action may not Authority: 42 U.S.C. 7401 et seq. submit a rule report, which includes a be challenged later in proceedings to Subpart AA—Missouri copy of the rule, to each House of the enforce its requirements (see section Congress and to the Comptroller General 307(b)(2)). ■ 2. In § 52.1320, the table in paragraph of the United States. The EPA will List of Subjects in 40 CFR Part 52 (c) is amended by revising the entry submit a report containing this action ‘‘10–6.062’’ to read as follows: and other required information to the Environmental protection, Air U.S. Senate, the U.S. House of pollution control, Carbon monoxide, § 52.1320 Identification of plan. Representatives, and the Comptroller Incorporation by reference, (c) * * *
EPA-APPROVED MISSOURI REGULATIONS
State Missouri Title effective EPA approval date Explanation citation date
Missouri Department of Natural Resources
*******
Chapter 6—Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control Regulations for the State of Missouri
******* 10–6.062 ...... Construction Permits By 3/30/2019 ...... 6/2/2021, [insert Fed- EPA is approving all revisions from Rule. eral Register citation]. the 3/30/2019 State effective date version of 10 CSR 10–6.062, ex- cept for paragraph (3)(B)2. and subparagraph (3)(B)2.A.
*******
* * * * * ENVIRONMENTAL PROTECTION Implementation Plan (SIP) revision [FR Doc. 2021–11244 Filed 6–1–21; 8:45 am] AGENCY submitted by the State of Maine. This BILLING CODE 6560–50–P revision incorporates Maine’s statute 40 CFR Part 52 repealing the State’s requirement for the [EPA–R01–OAR–2021–0006; FRL–10024– sale of federal reformulated gasoline 50–Region 1] (RFG) in York, Cumberland, Sagadahoc, Androscoggin, Kennebec, Knox and Air Plan Approval; Maine; Removal of Lincoln Counties (hereinafter referred to Reliance on Reformulated Gasoline in as the ‘‘southern Maine counties’’) into the Southern Counties of Maine the Maine SIP. The intended effect of AGENCY: Environmental Protection this action is to approve the SIP revision Agency (EPA). and approve, but not incorporate into ACTION: Final rule. the SIP, the corresponding noninterference demonstration. At this SUMMARY: The Environmental Protection time, EPA is not removing the Agency (EPA) is approving a State requirement for the sale of federal RFG
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in the applicable southern Maine counties, and also proposed approval of V. Statutory and Executive Order counties as that is the subject of a Maine’s statute at 38 M.R.S. § 585–N as Reviews separate petition to the EPA amended by Public Law 2019, c. 55, § 1, Under the Clean Air Act, the Administrator submitted on August 20, which repealed the State’s requirement Administrator is required to approve a 2020. The Administrator intends to act for the sale of RFG in the southern SIP submission that complies with the on that petition in the near future. This Maine counties effective November 1, provisions of the Act and applicable action is being taken in accordance with 2020. Federal regulations. 42 U.S.C. 7410(k); the Clean Air Act. The formal SIP revision was 40 CFR 52.02(a). Thus, in reviewing SIP DATES: This rule is effective on July 2, submitted by Maine on August 20, 2020. submissions, EPA’s role is to approve 2021. Other specific requirements to opt-out state choices, provided that they meet ADDRESSES: EPA has established a of the federal RFG requirements and the the criteria of the Clean Air Act. docket for this action under Docket rationale for EPA’s proposed action are Accordingly, this action merely Identification No. EPA–R01–OAR– explained in the NPRM and will not be approves state law as meeting Federal 2021–0006. All documents in the docket restated here. Three public comments requirements and does not impose are listed on the https:// were received on the NPRM. additional requirements beyond those www.regulations.gov website. Although imposed by state law. For that reason, II. Response to Comments listed in the index, some information is this action: not publicly available, i.e., CBI or other EPA received three comments during • Is not a significant regulatory action information whose disclosure is the comment period. The three subject to review by the Office of restricted by statute. Certain other comments support EPA’s proposal to Management and Budget under material, such as copyrighted material, approve Maine’s SIP revision. Executive Orders 12866 (58 FR 51735, is not placed on the internet and will be October 4, 1993) and 13563 (76 FR 3821, publicly available only in hard copy III. Final Action January 21, 2011); • Does not impose an information form. Publicly available docket EPA is approving the August 20, 2020 collection burden under the provisions materials are available at https:// SIP revision and approving, but not of the Paperwork Reduction Act (44 www.regulations.gov or at the U.S. incorporating into the SIP, the State’s U.S.C. 3501 et seq.); Environmental Protection Agency, EPA corresponding noninterference • Is certified as not having a Region 1 Regional Office, Air and demonstration. Radiation Division, 5 Post Office significant economic impact on a Square—Suite 100, Boston, MA. EPA IV. Incorporation by Reference substantial number of small entities requests that if at all possible, you under the Regulatory Flexibility Act (5 contact the contact listed in the FOR In this rule, the EPA is finalizing U.S.C. 601 et seq.); FURTHER INFORMATION CONTACT section to regulatory text that includes • Does not contain any unfunded schedule your inspection. The Regional incorporation by reference. In mandate or significantly or uniquely Office’s official hours of business are accordance with requirements of 1 CFR affect small governments, as described Monday through Friday, 8:30 a.m. to 51.5, the EPA is finalizing the in the Unfunded Mandates Reform Act 4:30 p.m., excluding legal holidays and incorporation by reference into Maine’s of 1995 (Pub. L. 104–4); facility closures due to COVID–19. SIP Maine’s revisions to C.M.R. ch. 119 • Does not have federalism Motor Vehicle Fuel Volatility Limits that FOR FURTHER INFORMATION CONTACT: John implications as specified in Executive remove the State’s requirement for the Rogan, Air Quality Branch, U.S. Order 13132 (64 FR 43255, August 10, sale of RFG in the southern Maine Environmental Protection Agency, EPA 1999); counties and is also approving into • Region 1, 5 Post Office Square—Suite Is not an economically significant Maine’s SIP Maine’s statute at 38 M.R.S. 100, (Mail code 05–2), Boston, MA regulatory action based on health or § 585–N as amended by Public Law 02109–3912, tel. (617) 918–1645, email safety risks subject to Executive Order 2019, c. 55, § 1, which repealed the [email protected]. 13045 (62 FR 19885, April 23, 1997); State’s requirement for the sale of RFG • Is not a significant regulatory action SUPPLEMENTARY INFORMATION: in the southern Maine counties, as subject to Executive Order 13211 (66 FR Throughout this document whenever described in the amendments to 40 CFR 28355, May 22, 2001); ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean part 52 set forth below. The EPA has • Is not subject to requirements of EPA. made, and will continue to make, these Section 12(d) of the National Table of Contents documents generally available through Technology Transfer and Advancement https://www.regulations.gov and at the Act of 1995 (15 U.S.C. 272 note) because I. Background and Purpose EPA Region 1 Office (please contact the II. Response to Comments application of those requirements would FOR FURTHER III. Final Action person identified in the be inconsistent with the Clean Air Act; IV. Incorporation by Reference INFORMATION CONTACT section of this and V. Statutory and Executive Order Reviews preamble for more information). • Does not provide EPA with the Therefore, these materials have been discretionary authority to address, as I. Background and Purpose approved by EPA for inclusion in the appropriate, disproportionate human On March 25, 2021 (86 FR 15844), State implementation plan, have been health or environmental effects, using EPA published a Notice of Proposed incorporated by reference by EPA into practicable and legally permissible Rulemaking (NPRM) for the State of that plan, are fully federally enforceable methods, under Executive Order 12898 Maine. under sections 110 and 113 of the CAA (59 FR 7629, February 16, 1994). The NPRM proposed approval of as of the effective date of the final In addition, the SIP is not approved Maine’s SIP revision incorporating rulemaking of EPA’s approval, and will to apply on any Indian reservation land Maine’s revisions to C.M.R. ch. 119 be incorporated by reference in the next or in any other area where EPA or an Motor Vehicle Fuel Volatility Limits that update to the SIP compilation.1 Indian tribe has demonstrated that a remove the State’s requirement for the tribe has jurisdiction. In those areas of sale of RFG in the southern Maine 1 62 FR 27968 (May 22, 1997). Indian country, the rule does not have
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tribal implications and will not impose States Court of Appeals for the Dated: May 24, 2021. substantial direct costs on tribal appropriate circuit by August 2, 2021. Deborah Szaro, governments or preempt tribal law as Filing a petition for reconsideration by Acting Regional Administrator, EPA Region specified by Executive Order 13175 (65 the Administrator of this final rule does 1. FR 67249, November 9, 2000). not affect the finality of this action for Part 52 of chapter I, title 40 of the The Congressional Review Act, 5 the purposes of judicial review nor does Code of Federal Regulations is amended U.S.C. 801 et seq., as added by the Small it extend the time within which a as follows: Business Regulatory Enforcement petition for judicial review may be filed, Fairness Act of 1996, generally provides and shall not postpone the effectiveness PART 52—APPROVAL AND that before a rule may take effect, the of such rule or action. This action may PROMULGATION OF agency promulgating the rule must IMPLEMENTATION PLANS submit a rule report, which includes a not be challenged later in proceedings to enforce its requirements. (See section copy of the rule, to each House of the ■ 1. The authority citation for part 52 307(b)(2).) Congress and to the Comptroller General continues to read as follows: of the United States. EPA will submit a List of Subjects in 40 CFR Part 52 Authority: 42 U.S.C. 7401 et seq. report containing this action and other required information to the U.S. Senate, Environmental protection, Air Subpart U—Maine the U.S. House of Representatives, and pollution control, Carbon monoxide, the Comptroller General of the United Incorporation by reference, ■ 2. In § 52.1020(c), amend the table by States prior to publication of the rule in Intergovernmental relations, Lead, revising the entry ‘‘Chapter 119’’; and by the Federal Register. A major rule Nitrogen dioxide, Ozone, Particulate adding new State citation for ‘‘38 M.R.S. cannot take effect until 60 days after it matter, Reporting and recordkeeping § 585–N as amended by Public Law is published in the Federal Register. requirements, Sulfur oxides, Volatile 2019, c. 55, § 1’’ at the end of the table This action is not a ‘‘major rule’’ as organic compounds. to read as follows: defined by 5 U.S.C. 804(2). Under section 307(b)(1) of the Clean § 52.1020 Identification of plan. Air Act, petitions for judicial review of * * * * * this action must be filed in the United (c) * * *
EPA-APPROVED MAINE REGULATIONS
State citation Title/subject State effective date EPA approval date Explanations and citation 1
******* Chapter 119 ...... Motor Vehicle Fuel July 15, 2015 ...... June 2, 2021 [Insert Removes references from the SIP for the re- Volatility Limit. Federal Register quirement to sell reformulated gasoline in citation]. York, Cumberland, Sagadahoc, Androscoggin, Kennebec, Knox and Lin- coln counties.
******* 38 M.R.S. § 585–N as Reformulated gasoline November 1, 2020 ..... June 2, 2021 [Insert Repeals the section of the statute which re- amended by Public Federal Register quires retailers in York, Cumberland, Law 2019, c. 55, § 1. citation]. Sagadahoc, Androscoggin, Kennebec, Knox and Lincoln counties in Maine to only sell reformulated gasoline.
[FR Doc. 2021–11320 Filed 6–1–21; 8:45 a.m.] SUMMARY: Under the Clean Air Act Diego County ozone nonattainment area BILLING CODE 6560–50–P (CAA or ‘‘Act’’), the Environmental are as expeditious as practicable but no Protection Agency (EPA) is taking final later than July 20, 2027, for the 2008 action to approve a request from the ozone NAAQS, and August 3, 2033, for ENVIRONMENTAL PROTECTION State of California to reclassify the San the 2015 ozone NAAQS. With respect to AGENCY Diego County ozone nonattainment area Severe state implementation plan (SIP) from ‘‘Serious’’ to ‘‘Severe’’ for the 2008 element submittal dates that have 40 CFR Part 81 ozone National Ambient Air Quality passed, the EPA is approving a deadline Standards (NAAQS) and from of no later than 12 months from the [EPA–R09–OAR–2021–0148; FRL–10024– ‘‘Moderate’’ to ‘‘Severe’’ for the 2015 effective date of this rule for submittal 30–Region 9] ozone NAAQS. The EPA is also of revisions to the San Diego County finalizing our action to reclassify in the portion of the California SIP to meet Designation of Areas for Air Quality same manner as state land, reservation additional requirements for Severe Planning Purposes; California; San areas of Indian country and any other ozone nonattainment areas to the extent Diego County Ozone Nonattainment that such revisions have not already Area; Reclassification to Severe area of Indian country within it where the EPA or a tribe has demonstrated that been submitted. AGENCY: Environmental Protection the tribe has jurisdiction located within DATES: This rule is effective on July 2, Agency (EPA). the boundaries of the San Diego County 2021. ozone nonattainment area. The new ADDRESSES: The EPA has established a ACTION: Final rule. applicable attainment dates for the San docket for this action under Docket ID
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No. EPA–R09–OAR–2021–0148. All NAAQS and August 3, 2028, for the III. Final Action documents in the docket are listed on 2015 ozone NAAQS pursuant to the For the reasons discussed in detail in the https://www.regulations.gov EPA’s SIP Requirements Rules (SRR) for the proposed rule and summarized 3 website. Although listed in the index, the 2008 and 2015 ozone NAAQS. herein, the EPA is approving the request some information is not publicly Upon reclassification, we noted that the by CARB to reclassify the San Diego available, e.g., Confidential Business new attainment dates for the San Diego County ozone nonattainment area to Information (CBI) or other information County ozone nonattainment area Severe for the 2008 and 2015 ozone whose disclosure is restricted by statute. would be as expeditiously as NAAQS. The EPA is also reclassifying Certain other material, such as practicable, but no later than July 20, reservation areas of Indian country, and copyrighted material, is not placed on 2027, for the 2008 ozone NAAQS and any other area of Indian country within the internet and will be publicly August 3, 2033, for the 2015 ozone it where the EPA or a tribe has available only in hard copy form. NAAQS. Further, as indicated in our demonstrated that the tribe has Publicly available docket materials are proposed notice, the reformulated jurisdiction, located within the available through https:// gasoline requirement will continue to boundaries of the San Diego County www.regulations.gov, or please contact apply within San Diego County upon ozone nonattainment area consistent the person identified in the FOR FURTHER reclassification to Severe.4 with the reclassification of state lands INFORMATION CONTACT section for In addition, the EPA also proposed to (i.e., to Severe). Lastly, the EPA is additional availability information. If reclassify reservation areas of Indian setting a deadline for submittal of SIP you need assistance in a language other country and any other area of Indian revisions to address the Severe area than English or if you are a person with country where the EPA or a tribe has disabilities who needs a reasonable demonstrated that the tribe has requirements for San Diego County, to accommodation at no cost to you, please jurisdiction within the San Diego the extent that such revisions have not already been submitted, of no later than contact the person identified in the FOR County nonattainment area as Severe one year from the effective date of this FURTHER INFORMATION CONTACT section. nonattainment for the 2008 and 2015 rule. FOR FURTHER INFORMATION CONTACT: T. ozone NAAQS.5 Although eligible tribes Khoi Nguyen, Air Planning Office (AIR– may seek the EPA’s approval of relevant IV. Statutory and Executive Order 2), EPA Region IX, 75 Hawthorne Street, tribal programs under the CAA, we Reviews noted that none of the affected tribes San Francisco, CA 94105, (415) 947– Under Executive Order 12866 (58 FR would be required to submit an 4120, or by email at nguyen.thien@ 51735, October 4, 1993), this final action implementation plan as a result of this epa.gov. is not a ‘‘significant regulatory action’’ reclassification. Table of Contents Please see our April 8, 2021 proposed and therefore is not subject to Executive Order 12866. With respect to lands I. Summary of the Proposed Action rule for additional background and a II. Public Comments and EPA Responses more detailed explanation of our under state jurisdiction, voluntary III. Final Action proposed action. reclassifications under CAA section IV. Statutory and Executive Order Reviews 181(b)(3) of the CAA are based solely II. Public Comments and EPA upon requests by the state, and the EPA I. Summary of the Proposed Action Responses is required under the CAA to grant On April 8, 2021, the EPA proposed The public comment period on the them. These actions do not, in and of to grant a request by the California Air proposed rule opened on April 8, 2021, themselves, impose any new Resources Board (CARB) to voluntarily the date of its publication in the Federal requirements on any sectors of the reclassify the San Diego County Register, and closed on May 10, 2021. economy. In addition, because the nonattainment area from Serious to During this period, the EPA did not statutory requirements are clearly 1 Severe for the 2008 ozone NAAQS and receive any comments on our proposed defined with respect to the differently from Moderate to Severe for the 2015 action. classified areas, and because those ozone NAAQS.2 requirements are automatically triggered With respect to Severe SIP element 3 The EPA promulgated the SRR for the 2008 and by reclassification, reclassification does submittal dates that have passed, the 2015 ozone NAAQS at 40 CFR part 52, subpart AA not impose a materially adverse impact EPA also proposed to establish a and subpart CC, respectively. under Executive Order 12866. With deadline of no later than 12 months 4 86 FR 18227, 18229. respect to Indian country, 5 from the effective date of reclassification The tribes are identified in 40 CFR 81.305 and reclassifications do not establish for submittal of revisions to the San 86 FR 18227, 18229: Barona Group of Capitan Grande of Mission Indians of the Barona deadlines for air quality plans or plan Diego County portion of the California Reservation, Campo Band of Diegueno Mission revisions. For these reasons, this final SIP to meet additional requirements for Indians of the Campo Indian Reservation, Capitan action is also not subject to Executive Severe ozone nonattainment areas to the Grande Band of Diegueno Mission Indians of Order 13211, ‘‘Actions Concerning extent that such revisions have not California, Ewiiaapaayp Band of Kumeyaay Indians, Iipay Nation of Santa Ysabel, Inaja Band of Regulations That Significantly Affect already been submitted. With respect to Diegueno Mission Indians of the Inaja and Cosmit Energy Supply, Distribution, or Use’’ (66 the section 185 fee program, upon Reservation, Jamul Indian Village of California, La FR 28355, May 22, 2001). reclassification to Severe, we indicated Jolla Band of Luiseno Indians, La Posta Band of In addition, I certify that this final that the deadline for submittal would be Diegueno Mission Indians of the La Posta Indian Reservation, Los Coyotes Band of Cahuilla and rule will not have a significant July 20, 2022, for the 2008 ozone Cupeno Indians, Manzanita Band of Diegueno economic impact on a substantial Mission Indians of the Manzanita Reservation, Mesa number of small entities under the 1 Throughout this document and in our proposed Grande Band of Diegueno Mission Indians of the rule, we use the term ‘‘Severe’’ to refer to Severe Mesa Grande Reservation, Pala Band of Mission Regulatory Flexibility Act (5 U.S.C. 601 areas that have up to 15 years to attain the ozone Indians, Pauma Band of Luiseno Mission Indians of et seq.), and that this final rule does not standards. The ozone area designation tables in 40 the Pauma and Yuima Reservation, Rincon Band of contain any unfunded mandate or CFR part 81 specify ‘‘Severe-15’’ to distinguish such Luiseno Mission Indians of the Rincon Reservation, significantly or uniquely affect small areas from ‘‘Severe-17’’ areas, which are Severe San Pasqual Band of Diegueno Mission Indians of areas that have up to 17 years to attain the ozone California, Sycuan Band of the Kumeyaay Nation, governments, as described in the standards. and Viejas (Baron Long) Group of Capitan Grande Unfunded Mandates Reform Act of 1995 2 86 FR 18227 (April 8, 2021). Band of Mission Indians of the Viejas Reservation. (Pub. L. 104–4), because the EPA is
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required to grant requests by states for webinar on this matter on behalf of a The Congressional Review Act, 5 voluntary reclassifications and such few tribes. We held this informational U.S.C. 801 et seq., as added by the Small reclassifications in and of themselves do webinar on January 22, 2021. Business Regulatory Enforcement not impose any federal Additionally, we received responses Fairness Act of 1996, generally provides intergovernmental mandate, and from three tribes requesting formal that before a rule may take effect, the because tribes are not subject to government-to-government agency promulgating the rule must implementation plan submittal consultation. The consultation letters submit a rule report, which includes a deadlines that apply to states as a result and the information and notes from the copy of the rule, to each House of the of reclassifications. webinar and the three government-to- Congress and to the Comptroller General Executive Order 13175 (65 FR 67249, government consultations are included of the United States. The EPA will November 9, 2000) requires the EPA to in the docket for this action. The EPA submit a report containing this action develop an accountable process to has carefully considered the views and other required information to the ensure ‘‘meaningful and timely input by expressed by the tribes. U.S. Senate, the U.S. House of tribal officials in the development of Executive Order 12898 (59 FR 7629, Representatives, and the Comptroller regulatory policies that have tribal February 16, 1994) establishes federal General of the United States prior to implications.’’ ‘‘Policies that have tribal executive policy on environmental publication of the rule in the Federal Implications’’ are defined in section 1(a) justice. Its main provision directs Register. A major rule cannot take effect of the Executive Order to include federal agencies, to the greatest extent until 60 days after it is published in the regulations that have ‘‘substantial direct practicable and permitted by law, to Federal Register. This action is not a effects on one or more Indian tribes, on make environmental justice part of their ‘‘major rule’’ as defined by 5 U.S.C. the relationship between the Federal mission by identifying and addressing, 804(2). Government and the Indian tribes, or on as appropriate, disproportionately high Under section 307(b)(1) of the Clean the distribution of power and and adverse human health or Air Act, petitions for judicial review of responsibilities between the Federal environmental effects of their programs, this action must be filed in the United Government and Indian tribes.’’ Several policies, and activities on minority States Court of Appeals for the Indian tribes have areas of Indian populations and low-income appropriate circuit by August 2, 2021. country located within the boundary of populations in the United States. This Filing a petition for reconsideration by the San Diego County ozone final reclassification action relates to the Administrator of this final rule does nonattainment areas. ozone, a pollutant that is regional in not affect the finality of this action for The EPA implements federal CAA nature, and is not the type of action that the purposes of judicial review nor does programs, including reclassifications, in could result in the types of local it extend the time within which a these areas of Indian country consistent impacts addressed in Executive Order petition for judicial review may be filed, with our discretionary authority under 12898. and shall not postpone the effectiveness sections 301(a) and 301(d)(4) of the This final action also does not have of such rule or action. This action may CAA. The EPA has concluded that this not be challenged later in proceedings to final rule might have tribal implications federalism implications because it does not have substantial direct effects on the enforce its requirements. (See section for the purposes of E.O. 13175 but 307(b)(2).) would not impose substantial direct states, on the relationship between the costs upon the tribes, nor would it national government and the states, nor List of Subjects in 40 CFR Part 81 preempt tribal law. This final rule does on the distribution of power and responsibilities among the various Environmental protection, Air affect implementation of new source pollution control, Intergovernmental review for new or modified major levels of government, as specified in Executive Order 13132 (64 FR 43255, relations, National parks, Ozone, stationary sources proposed to be Wilderness areas. located in the areas of Indian country August 10, 1999). This final action does that are being reclassified, and might not alter the relationship, or the Authority: 42 U.S.C. 7401 et seq. affect projects proposed in these areas distribution of power and Dated: May 24, 2021. that require federal permits, approvals, responsibilities established in the CAA. Deborah Jordan, or funding. Such projects are subject to This final rule also is not subject to Acting Regional Administrator, Region IX. the requirements of the EPA’s general Executive Order 13045, ‘‘Protection of For the reasons stated in the conformity rule, and federal permits, Children from Environmental Health preamble, the EPA amends 40 CFR part approvals, or funding for the projects Risks and Safety Risks’’ (62 FR 19885, 81 as follows: may be more difficult to obtain because April 23, 1997), because the EPA interprets Executive Order 13045 as of the lower de minimis thresholds PART 81—DESIGNATION OF AREAS applying only to those regulatory triggered by reclassification. FOR AIR QUALITY PLANNING actions that concern health or safety Given the potential implications, the PURPOSES EPA contacted tribal officials early in risks, such that the analysis required the process of developing our proposed under section 5–501 of the Executive ■ 1. The authority citation for part 81 rule to provide an opportunity to have Order has the potential to influence the continues to read as follows: meaningful and timely input into its regulation. Authority: 42 U.S.C. 7401 et seq. development. On December 11, 2020, Reclassification actions do not we sent letters to leaders of the 17 tribal involve technical standards and thus, Subpart C—Section 107 Attainment governments representing 18 areas of the requirements of section 12(d) of the Status Designations Indian country in the nonattainment National Technology Transfer and area offering government-to-government Advancement Act of 1995 (15 U.S.C. ■ 2. Section 81.305 is amended by consultation and seeking input on how 272 note) do not apply. This final rule revising the entry for ‘‘San Diego we could best communicate with the does not impose an information County, CA’’ in the table titled tribes on this rulemaking effort. On collection burden under the provisions ‘‘California—2008 8-Hour Ozone January 12, 2021, we received a of the Paperwork Reduction Act of 1995 NAAQS [Primary and Secondary],’’ and response from one tribe requesting a (44 U.S.C. 3501 et seq.). by revising the entry for ‘‘San Diego
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County, CA’’ in the table titled NAAQS [Primary and Secondary]’’ to § 81.305 California. ‘‘California—2015 8-Hour Ozone read as follows: * * * * *
CALIFORNIA—2008 8-HOUR OZONE NAAQS [Primary and Secondary]
Designation Classification Designated area Date 1 Type Date 1 Type
******* San Diego County, CA ...... Nonattainment .. July 2, 2021 ...... Severe-15. San Diego County: Barona Group of Capitan Grande Band of Mission Indians of the Barona Reservation. 3 Campo Band of Diegueno Mission Indians of the Campo Indian Reservation. 3 Capitan Grande Band of Diegueno Mission Indians of California. 3 Ewiiaapaayp Band of Kumeyaay Indians. 3 Iipay Nation of Santa Ysabel. 3 Inaja Band of Diegueno Mission Indians of the Inaja and Cosmit Reservation. 3 Jamul Indian Village of California. 3 La Jolla Band of Luiseno Indians. 3 La Posta Band of Diegueno Mission Indians of the La Posta Indian Reservation. 3 Los Coyotes Band of Cahuilla and Cupeno Indians. 3 Manzanita Band of Diegueno Mission Indians of the Manzanita Reservation. 3 Mesa Grande Band of Diegueno Mission Indians of the Mesa Grande Reservation. 3 Pala Band of Luiseno Mission Indians of the Pala Res- ervation. 3 Pauma Band of Luiseno Mission Indians of the Pauma and Yuima Reservation. 3 Rincon Band of Luiseno Mission Indians of the Rincon Reservation. 3 San Pasqual Band of Diegueno Mission Indians of Cali- fornia. 3 Sycuan Band of the Kumeyaay Nation. 3 Viejas (Baron Long) Group of Capitan Grande Band of Mission Indians. 3
******* 1 This date is July 20, 2012, unless otherwise noted. 2 Excludes Indian country located in each area, unless otherwise noted. 3 Includes Indian country of the tribe listed in this table located in the identified area. Information pertaining to areas of Indian country in this table is intended for CAA planning purposes only and is not an EPA determination of Indian country status or any Indian country boundary. EPA lacks the authority to establish Indian country land status, and is making no determination of Indian country boundaries, in this table.
* * * * *
CALIFORNIA—2015 8-HOUR OZONE NAAQS [Primary and Secondary]
Designation Classification Designated area 1 Date 2 Type Date 2 Type
******* San Diego County, CA 2 ...... Nonattainment .. July 2, 2021 ...... Severe-15. San Diego County: 2 Barona Group of Capitan Grande Band of Mission Indians of the Barona Reservation. Campo Band of Diegueno Mission Indians of the Campo Indian Reservation. Capitan Grande Band of Diegueno Mission Indians of California. Ewiiaapaayp Band of Kumeyaay Indians. Iipay Nation of Santa Ysabel.
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CALIFORNIA—2015 8-HOUR OZONE NAAQS—Continued [Primary and Secondary]
Designation Classification Designated area 1 Date 2 Type Date 2 Type
Inaja Band of Diegueno Mission Indians of the Inaja and Cosmit Reservation. Jamul Indian Village of California. La Jolla Band of Luiseno Indians. La Posta Band of Diegueno Mission Indians of the La Posta Indian Reservation. Los Coyotes Band of Cahuilla and Cupeno Indians. Manzanita Band of Diegueno Mission Indians of the Manzanita Reservation. Mesa Grande Band of Diegueno Mission Indians of the Mesa Grande Reservation. Pala Band of Luiseno Mission Indians of the Pala Res- ervation. Pauma Band of Luiseno Mission Indians of the Pauma and Yuima Reservation. Rincon Band of Luiseno Mission Indians of the Rincon Reservation. San Pasqual Band of Diegueno Mission Indians of Cali- fornia. Sycuan Band of the Kumeyaay Nation. Viejas (Baron Long) Group of Capitan Grande Band of Mission Indians.
******* 1 Includes any Indian country in each county or area, unless otherwise specified. EPA is not determining the boundaries of any area of Indian country in this table, including any area of Indian country located in the larger designation area. The inclusion of any Indian country in the des- ignation area is not a determination that the state has regulatory authority under the Clean Air Act for such Indian country. 2 This date is August 3, 2018, unless otherwise noted.
* * * * * ■ 2. On page 28286, in the table entitled DEPARTMENT OF HEALTH AND [FR Doc. 2021–11524 Filed 6–1–21; 8:45 am] ‘‘ALTERNATIVE TESTING METHODS HUMAN SERVICES BILLING CODE 6560–50–P FOR CONTAMINANTS LISTED AT 40 CFR 141.24 (e)(1)’’, in the first column Centers for Medicare & Medicaid entitled ‘‘Contaminant’’, the twenty- Services ENVIRONMENTAL PROTECTION fourth line, ‘‘...... ’’ AGENCY should read, ‘‘Alachlor.’’ 42 CFR Parts 405, 417, 422, 423, 455 and 460 40 CFR Part 141 ■ 3. On page 28286, in the table entitled ‘‘ALTERNATIVE TESTING METHODS [CMS–4190–F3] [EPA–HQ–OW–2021–0079; FRL 10022–49– OW] FOR CONTAMINANTS LISTED AT 40 RIN 0938–AT97 CFR 141.24 (e)(1)’’, in the first column Expedited Approval of Alternative Test entitled ‘‘Contaminant’’, the twenty- Medicare and Medicaid Programs; Procedures for the Analysis of fourth line, the third row Contract Year 2022 Policy and Contaminants Under the Safe Drinking ‘‘...... ’’ should read, Technical Changes to the Medicare Water Act; Analysis and Sampling ‘‘525.3 24 Advantage Program, Medicare Procedures ■ 4. On page 28286, in the table entitled Prescription Drug Benefit Program, ‘‘ALTERNATIVE TESTING METHODS Medicaid Program, Medicare Cost Plan Correction Program, and Programs of All FOR CONTAMINANTS LISTED AT 40 In rule document 2021–10974 Inclusive Care for the Elderly; CFR 141.24 (e)(1)’’, in the first column appearing on pages 28277 through Corrections 28290 in the issue of Wednesday, May entitled ‘‘Contaminant’’, the twenty- 26, 2021, make the following correction: eighth row, beneath ‘‘Carbofuran’’ AGENCY: Centers for Medicare & currently reads, ‘‘...... ’’ and Medicaid Services (CMS), Department PART 141—NATIONAL PRIMARY should read, ‘‘Chlordane’’. of Health and Human Services (HHS). DRINKING WATER REGULATIONS [FR Doc. C1–2021–10974 Filed 6–1–21; 8:45 am] ACTION: Final rule; correction and [CORRECTED] BILLING CODE 0099–10–P correcting amendment.
■ 1. On page 28285, in the table entitled SUMMARY: This document corrects ‘‘ALTERNATIVE TESTING METHODS technical and typographical errors in FOR CONTAMINANTS LISTED AT 40 the final rule that appeared in the CFR 141.23 (k)(1)’’, in the second row January 19, 2021 Federal Register titled from the bottom of the page ‘‘pH’’, in ‘‘Medicare and Medicaid Programs; columns four, five and six, ‘‘4500–H + Contract Year 2022 Policy and B’’ should read, ‘‘4500–H + B’’ Technical Changes to the Medicare
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Advantage Program, Medicare inadvertently omitted changes that finding that the notice and comment Prescription Drug Benefit Program, would move existing paragraph (f)(2)(vi) process are impracticable, unnecessary, Medicaid Program, Medicare Cost Plan to paragraph (f)(3)(i) This error caused a or contrary to the public interest. In Program, and Programs of All Inclusive duplication of those paragraphs. addition, both section 553(d)(3) of the Care for the Elderly.’’ The effective date Therefore, we are removing paragraph APA and section 1871(e)(1)(B)(ii) of the of the final rule was March 22, 2021. (f)(2)(vi) to correct this error. Act allow the agency to avoid the 30- DATES: This document is effective June On page 6103, we inadvertently day delay in effective date where such 2, 2021. changed the format in the regulation delay is contrary to the public interest text for § 422.760(b)(3)(ii)(C) that was FOR FURTHER INFORMATION CONTACT: Cali and an agency includes a statement of inconsistent with the language in Diehl, (410) 786–4053 or Christopher support. § 423.760(b)(3)(ii)(C). In addition, we We believe that this correcting McClintick, (410) 786–4682—General made a typographical error in document does not constitute a rule that Questions. § 422.760(b)(3)(ii)(A). would be subject to the notice and Kimberlee Levin, (410) 786–2549— On page 6120, in the regulation text comment or delayed effective date Part C Issues. for § 423.568(j)(2) and (3) and (k), we requirements of the APA or section 1871 Lucia Patrone, (410) 786–8621—Part inadvertently use language applicable to of the Act. This correcting document D Issues. MA plans instead of Part D plan Kristy Nishimoto, (206) 615–2367— corrects technical errors in the preamble sponsors. Beneficiary Enrollment and Appeals and regulations text of the final rule but On page 6128, in the regulations text does not make substantive changes to Issues. for § 423.2267, we inadvertently the policies that were adopted in the Danielle Blaser, (410) 786–3487— misnumbered a paragraph. Program Integrity Issues. final rule. As a result, this correcting Tobey Oliver, (202) 260–1113—D– III. Waiver of Proposed Rulemaking document is intended to ensure that the SNP Appeals and Grievances. and Delay in Effective Date information in the final rule accurately reflects the policies adopted in that final SUPPLEMENTARY INFORMATION: Under 5 U.S.C. 553(b) of the rule. I. Background Administrative Procedure Act (APA), In addition, even if this were a rule to the agency is required to publish a which the notice and comment In FR Doc. 2021–00538 of January 19, notice of the proposed rule in the procedures and delayed effective date 2021 (86 FR 5864), the final rule titled Federal Register before the provisions requirements applied, we find that there ‘‘Medicare and Medicaid Programs; of a rule take effect. Specifically, 5 is good cause to waive such Contract Year 2022 Policy and U.S.C. 553 requires the agency to requirements. Undertaking further Technical Changes to the Medicare publish a notice of the proposed rule in notice and comment procedures to Advantage Program, Medicare the Federal Register that includes a incorporate the corrections in this Prescription Drug Benefit Program, reference to the legal authority under document into the final rule or delaying Medicaid Program, Medicare Cost Plan which the rule is proposed, and the the effective date would be contrary to Program, and Programs of All Inclusive terms and substance of the proposed the public interest because it is in the Care for the Elderly’’, there were rule or a description of the subjects and public’s interest to ensure that final rule technical errors that are identified and issues involved. Further, 5 U.S.C. 553 accurately reflects our policies. corrected in this correcting amendment. requires the agency to give interested Furthermore, such procedures would be II. Summary of Errors parties the opportunity to participate in unnecessary, as we are not altering the rulemaking through public comment payment eligibility or benefit A. Summary of Errors in the Preamble before the provisions of the rule take methodologies or policies, but rather, On pages 5870, 5895, 5950, 5975, effect. Similarly, section 1871(b)(1) of simply implementing correctly the 5983, 5985, 5987, 6007, 6016, and 6088, the Act requires the Secretary to provide policies that we previously proposed, we made inadvertent grammatical and for notice of the proposed rule in the received comment on, and subsequently typographical errors. Federal Register and provide a period of finalized. This correcting document is On page 5938, in our discussion of not less than 60 days for public intended solely to ensure that the final tiering exceptions requests and the comment for rulemaking to carry out the rule accurately reflects these policies. complaint tracking module, we administration of the Medicare program Therefore, we believe we have good inadvertently included an incorrect under title XVIII of the Act. In addition, cause to waive the requirements for link. section 553(d) of the APA, and section notice and comment and delay of On pages 5962 and 6058, we made 1871(e)(1)(B)(i) of the Social Security effective date. typographical errors in several Act (the Act) mandate a 30-day delay in regulatory citations. effective date after issuance or IV. Correction of Errors in the Preamble On pages 5977 and 5990, made publication of a rule. Sections 553(b)(B) In FR Doc. 2021–00538, published in typographical errors in cross-references and 553(d)(3) of the APA provide for the Federal Register of January 19, to other sections of the final rule. exceptions from the notice and 2021, beginning on page 5864, the On page 6062, in our discussion of the comment and delay in effective date following corrections are made: information collection requirements APA requirements. In cases in which 1. On page 5870, second column of (ICRs) regarding beneficiaries’ education these exceptions apply, sections the table, first paragraph, line 3, the on opioid risks and alternative 1871(b)(2)(C) and 1871(e)(1)(B)(ii) of the phrase ‘‘he RTBTI’’ is corrected to read treatments (§ 423.128), we mistakenly Act, also provide exceptions from the ‘‘The RTBT’’. referred to ‘‘Part D sponsors’’ rather than notice and 60-day comment period and 2. On page 5895, third column, ‘‘Part D parent organizations.’’ delay in effective date requirements of second full paragraph, line 6, the terms the Act. Section 553(b)(B) of the APA ‘‘thatthis’’ are corrected to read ‘‘that B. Summary of Errors in the Regulations and section 1871(b)(2)(C) of the Act this’’. Text authorize an agency to dispense with 3. On page 5938, second column, On page 6094, in the amendatory normal rulemaking requirements for second full paragraph, lines 8 through instructions for § 422.101, we good cause if the agency makes a 10, the website link ‘‘https://
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www.cms.gov/files/document/ Health facilities, Health maintenance Dated: May 25, 2021. cy2020part-d- organizations (HMO), Medicare, Karuna Seshasai, reportingrequirements.pdf’’ is corrected Penalties, Privacy, Reporting and Executive Secretary to the Department, to read ‘‘https://www.cms.gov/files/ recordkeeping requirements. Department of Health and Human Services. document/cy2020part-d-reporting- Accordingly, 42 CFR parts 422 and [FR Doc. 2021–11446 Filed 6–1–21; 8:45 am] requirements082719.pdf’’. 423 are corrected by making the BILLING CODE 4120–01–P 4. On page 5950, third column, third following correcting amendments: full paragraph, lines 23 and 24, the phrase ‘‘will become’’ is corrected to PART 422—MEDICARE ADVANTAGE DEPARTMENT OF TRANSPORTATION ‘‘became’’. PROGRAM 5. On page 5962, third column, Pipeline and Hazardous Materials second partial paragraph, line 7, the ■ 1. The authority citation for part 422 Safety Administration citation ‘‘§ 422.509 or § 423.510’’ is continues to read as follows: corrected to read ‘‘§ 422.510 or Authority: 42 U.S.C. 1302 and 1395hh. 49 CFR Parts 107 § 423.509’’. RIN 2105–AE99 6. On page 5975, first column, fifth § 422.101 [Amended] paragraph, line 18, the word ‘‘reward’’ ■ 2. Section 422.101 is amended by Civil Penalty Amounts; Correction is corrected to read ‘‘rewards’’. removing paragraph (f)(2)(vi). 7. On page 5977, third column, AGENCY: Department of Transportation ■ second full paragraph, line 19, the 3. Section 422.760 is amended as (DOT or the Department). phrase ‘‘Section IIIC’’ is corrected to follows: ACTION: Final rule; technical correction. read ‘‘Section III.C.’’. ■ a. In paragraph (b)(3)(ii)(A) by SUMMARY: In accordance with the 8. On page 5983, second column, first removing the word ‘‘increases’’ and Federal Civil Penalties Inflation partial paragraph, line 37, the word adding in its place the phrase ‘‘are Adjustment Act Improvements Act of ‘‘provider’’ is corrected to read increased’’. ■ b. By revising paragraph (b)(3)(ii)(C). 2015, DOT published a final rule on ‘‘provides’’. May 3, 2021 to provide the 2021 The revision reads as follows: 9. On page 5985, third column, first inflation adjustment to civil penalty full paragraph, line 6, the word ‘‘are’’ is § 422.760 Determinations regarding the amounts that may be imposed for corrected to read ‘‘is’’. amount of civil money penalties and violations of certain DOT regulations. 10. On page 5987, first column, assessment imposed by CMS. This rule corrects an error in that second partial paragraph, line 17, the * * * * * rulemaking resulting from an inaccurate word ‘‘of’’ is corrected to read ‘‘or’’. (b) * * * amendatory instruction. The rule does 11. On page 5990, second column, not change any civil penalty amounts first full paragraph, line 25, the (3) * * * (ii) * * * established in the final rule published reference ‘‘section D.’’ is corrected to on May 3, 2021. read ‘‘section V.D.’’. (C) CMS tracks the calculation and DATES: Effective June 2, 2021. 12. On page 6007, first column, accrual of the standard minimum second partial paragraph, lines 26 and penalty and aggravating factor amounts FOR FURTHER INFORMATION CONTACT: 27, the phrase ‘‘used evaluating’’ is and announces them on an annual basis. Elizabeth Kohl, Attorney-Advisor, Office of the General Counsel, U.S. corrected to read ‘‘use in evaluating’’. * * * * * 13. On page 6016, first column, first Department of Transportation, 1200 full paragraph, line 1, the word ‘‘toe’’ is PART 423—VOLUNTARY MEDICARE New Jersey Ave. SE, Washington, DC corrected to read ‘‘to’’. PRESCRIPTION DRUG BENEFIT 20590, [email protected]. 14. On page 6058, third column, first SUPPLEMENTARY INFORMATION: This rule full paragraph, line 4: ■ 4. The authority citation for part 423 corrects an error in DOT’s final rule, a. The reference ‘‘0938–10396’’ is continues to read as follows: published on May 3, 2021 (86 FR 23241) corrected to ‘‘0938–1154’’. Authority: 42 U.S.C. 1302, 1306, 1395w– in accordance with the Federal Civil b. The reference ‘‘CMS–1154’’ is 101 through 1395w–152, and 1395hh. Penalties Inflation Adjustment Act corrected to read ‘‘CMS–10396’’. Improvements Act of 2015, providing § 423.568 [Amended] 15. On page 6062, first column, first the 2021 inflation adjustment to civil full paragraph, line 1, ‘‘288 Part D ■ 5. Section 423.568 is amended as penalty amounts that may be imposed sponsors’’ is corrected to read ‘‘288 Part follows: for violations of certain DOT regulations. Specifically, in amendatory D parent organizations’’. ■ a. In paragraph (j)(2) by removing the instruction 19., DOT specified removal 16. On page 6088, second column, phrase ‘‘MA organization’’ and adding of ‘‘July 31, 2019’’ from appendix A to first full paragraph, line 12, ‘‘positon’’ is in its place the phrase ‘‘Part D plan subpart D of 49 CFR 107, and corrected to ‘‘position’’. sponsor’’. replacement with ‘‘May 3, 2021’’. The ■ List of Subjects b. In paragraph (j)(3) by removing the instruction should instead have directed term ‘‘reconsideration’’ adding in its 42 CFR Part 422 removal of ‘‘January 11, 2021’’ and place the term ‘‘redetermination’’. replacement with ‘‘May 3, 2021’’. DOT Administrative practice and ■ c. In paragraph (k) by removing the publishes this final rule to effectuate procedure, Health facilities, Health term ‘‘redetermination’’ adding in its that change. maintenance organizations (HMO), place the term ‘‘coverage Medicare, Penalties, Privacy, Reporting determination’’. Regulatory Analysis and Notices DOT has determined that all of the and recordkeeping requirements. § 423.2267 [Amended] regulatory reviews and analyses 42 CFR Part 423 ■ 6. Section 423.2267 is amended by conducted in support of the May 3, 2021 Administrative practice and redesignating paragraph (e)(13)(ii)(H) as final rule remain unchanged as a result procedure, Emergency medical services, paragraph (e)(13)(ii)(G). of this final rule.
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List of Subjects in 49 CFR Part 107 Authority: 49 U.S.C. 5101–5128, 44701; Signed in Washington, DC, on or about Pub. L. 101–410 Section 4; Pub. L. 104–121 May 24, 2021. Administrative practices and Sections 212–213; Pub. L. 104–134 Section procedure, Hazardous materials John E. Putnam, 31001; Pub. L. 114–74 Section 4 (28 U.S.C. Acting General Counsel. transportation, Packaging and 2461 note); 49 CFR 1.81 and 1.97; 33 U.S.C. containers, Penalties, Reporting and 1321. [FR Doc. 2021–11283 Filed 6–1–21; 8:45 am] recordkeeping requirements. BILLING CODE P Accordingly, the Department of Appendix A to Subpart D of Part 107 Transportation amends 49 CFR part 107 [Amended] with the following technical correction: ■ 2. In appendix A to subpart D of part PART 107—[AMENDED] 107, in the second paragraph of section B. ‘‘Penalty Increases for Multiple ■ 1. The authority citation for part 107 Counts,’’ remove ‘‘January 11, 2021’’ continues to read as follows: and add in its place ‘‘May 3, 2021’’.
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Proposed Rules Federal Register Vol. 86, No. 104
Wednesday, June 2, 2021
This section of the FEDERAL REGISTER www.archives.gov/federal-register/cfr/ Docket No. FAA–2021–0416; Airspace contains notices to the public of the proposed ibr-locations.html. Docket No. 21–ANM–30.’’ The postcard issuance of rules and regulations. The FOR FURTHER INFORMATION CONTACT: will be date/time stamped and returned purpose of these notices is to give interested to the commenter. persons an opportunity to participate in the Christopher McMullin, Rules and Regulations Group, Office of Policy, All communications received on or rule making prior to the adoption of the final before the specified comment closing rules. Federal Aviation Administration, 800 Independence Avenue SW, Washington, date will be considered before taking DC 20591; telephone: (202) 267–8783. action on the proposed rule. The proposal contained in this action may DEPARTMENT OF TRANSPORTATION SUPPLEMENTARY INFORMATION: be changed in light of comments Federal Aviation Administration Authority for This Rulemaking received. All comments submitted will The FAA’s authority to issue rules be available for examination in the 14 CFR Part 71 regarding aviation safety is found in public docket both before and after the Title 49 of the United States Code comment closing date. A report [Docket No. FAA–2021–0416; Airspace summarizing each substantive public Docket No. 21–ANM–30] (U.S.C.). Subtitle I, Section 106 describes the authority of the FAA contact with FAA personnel concerned with this rulemaking will be filed in the RIN 2120–AA66 Administrator. Subtitle VII, Aviation Programs, describes in more detail the docket. Proposed Revocation of Jet Route scope of the agency’s authority. This Availability of NPRM J–591; Bellingham, WA rulemaking is promulgated under the An electronic copy of this document authority described in Subtitle VII, Part AGENCY: Federal Aviation may be downloaded through the A, Subpart I, Section 40103. Under that Administration (FAA), DOT. internet at https://www.regulations.gov. section, the FAA is charged with Recently published rulemaking ACTION: Notice of proposed rulemaking prescribing regulations to assign the use (NPRM). documents can also be accessed through of the airspace necessary to ensure the the FAA’s web page at https:// safety of aircraft and the efficient use of SUMMARY: This action proposes to www.faa.gov/air_traffic/publications/ revoke jet route airspace. This regulation is within the airspace_amendments/. J–591 in the vicinity of Bellingham, WA scope of that authority as it would You may review the public docket due to actions of NAVCANADA modify the route structure as necessary containing the proposal, any comments revoking the entire route in Canada, to preserve the safe and efficient flow of received and any final disposition in effective February 25, 2021. air traffic within the National Airspace person in the Dockets Office (see System (NAS). ADDRESSES DATES: Comments must be received on section for address and or before July 19, 2021. Comments Invited phone number) between 9:00 a.m. and 5:00 p.m., Monday through Friday, ADDRESSES: Send comments on this Interested parties are invited to except Federal holidays. An informal proposal to the U.S. Department of participate in this proposed rulemaking docket may also be examined during Transportation, Docket Operations, 1200 by submitting such written data, views, normal business hours at the office of New Jersey Avenue SE, West Building, or arguments, as they may desire. the Operations Support Group, Western Ground Floor, Room W12–140, Comments that provide the factual basis Service Center, Federal Aviation Washington, DC 20590; telephone: (800) supporting the views and suggestions Administration, 2200 South 216th St., 647–5527, or (202) 366–9826. You must presented are particularly helpful in Des Moines, WA 98198. identify FAA Docket No. FAA–2021– developing reasoned regulatory 0416; Airspace Docket No. 21–ANM–30 decisions on the proposal. Comments Availability and Summary of at the beginning of your comments. You are specifically invited on the overall Documents for Incorporation by may also submit comments through the regulatory, aeronautical, economic, Reference internet at https://www.regulations.gov. environmental, and energy-related This document proposes to amend FAA Order 7400.11E, Airspace aspects of the proposal. FAA Order 7400.11E, Airspace Designations and Reporting Points, and Communications should identify both Designations and Reporting Points, subsequent amendments can be viewed docket numbers (FAA Docket No. FAA– dated July 21, 2020, and effective online at https://www.faa.gov/air_ 2021–0416; Airspace Docket No. 21– September 15, 2020. FAA Order traffic/publications/. For further ANM–30) and be submitted in triplicate 7400.11E is publicly available as listed information, you can contact the Rules to the Docket Management Facility (see in the ADDRESSES section of this and Regulations Group, Federal ADDRESSES section for address and document. FAA Order 7400.11E lists Aviation Administration, 800 phone number). You may also submit Class A, B, C, D, and E airspace areas, Independence Avenue SW, Washington, comments through the internet at air traffic service routes, and reporting DC 20591; telephone: (202) 267–8783. https://www.regulations.gov. points. The Order is also available for Commenters wishing the FAA to inspection at the National Archives and acknowledge receipt of their comments Background Records Administration (NARA). For on this action must submit with those NAVCANADA is in the process of information on the availability of FAA comments a self-addressed, stamped revoking airways in Canada that are Order 7400.11E at NARA, email: postcard on which the following underutilized. The Aeronautical [email protected] or go to https:// statement is made: ‘‘Comments to FAA Information Regulation and Control
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(AIRAC), issue 53 published on List of Subjects in 14 CFR Part 71 DATES: Comments must be received on December 31, 2020 identified J–591 as Airspace, Incorporation by reference, or before July 19, 2021. being revoked effective February 25, Navigation (air). ADDRESSES: Send comments on this 2021. A seven mile portion of that route proposal to the U.S. Department of navigates into the NAS, terminating at The Proposed Amendment Transportation, Docket Operations, 1200 Whatcom VHF omnidirectional range In consideration of the foregoing, the New Jersey Avenue SE, West Building beacon and tactical air navigation Federal Aviation Administration Ground Floor, Room W12–140, system (VORTAC) in Bellingham, WA. proposes to amend 14 CFR part 71 as Washington, DC 20590; telephone: (800) Since the rest of the route in Canada has follows: 647–5527, or (202) 366–9826. You must been revoked, there is no need to retain identify FAA Docket No. FAA–2021– the small portion from the Canadian PART 71—DESIGNATION OF CLASS A, 0414; Airspace Docket No. 21–AAL–25 border to the Whatcom VORTAC. B, C, D, AND E AIRSPACE AREAS; AIR at the beginning of your comments. You TRAFFIC SERVICE ROUTES; AND The Proposal may also submit comments through the REPORTING POINTS internet at https://www.regulations.gov. The FAA is proposing an amendment FAA Order 7400.11E, Airspace ■ 1. The authority citation for part 71 to 14 CFR part 71 to revoke jet route J– Designations and Reporting Points, and continues to read as follows: 591, due to NAVCANADA’s actions subsequent amendments can be viewed revoking the route in Canada. The Authority: 49 U.S.C. 106(f), 106(g); 40103, online at https://www.faa.gov/air_ proposed change is outlined below. 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, traffic/publications/. For further 1959–1963 Comp., p. 389. J–591: J–591 is currently published in information, you can contact the Rules FAA Order 7400.11E to navigate § 71.1 [Amended] and Regulations Group, Federal between Whatcom, WA; to Kelowna, ■ 2. The incorporation by reference in Aviation Administration, 800 BC, Canada. The FAA proposes to 14 CFR 71.1 of FAA Order 7400.11E, Independence Avenue SW, Washington, revoke the route in its entirety. Airspace Designations and Reporting DC 20591; telephone: (202) 267–8783. The Order is also available for Jet routes are published in paragraph Points, dated July 21, 2020, and inspection at the National Archives and 2004, of FAA Order 7400.11E, dated effective September 15, 2020, is Records Administration (NARA). For July 21, 2020, and effective September amended as follows: information on the availability of FAA 15, 2020, which is incorporated by Paragraph 2004 Jet Routes. Order 7400.11E at NARA, email: reference in 14 CFR 71.1. The ATS route * * * * * [email protected] or go to https:// listed in this document would be www.archives.gov/federal-register/cfr/ subsequently removed from the Order. J–591 [Remove] ibr-locations.html. FAA Order 7400.11, Airspace From Whatcom, WA; to Kelowna, BC, Canada. The segment within Canada is FOR FURTHER INFORMATION CONTACT: Designations and Reporting Points, is excluded. Christopher McMullin, Rules and published yearly and effective on * * * * * Regulations Group, Office of Policy, September 15. Issued in Washington, DC, on May 25, Federal Aviation Administration, 800 Regulatory Notices and Analyses 2021. Independence Avenue SW, Washington, George Gonzalez, DC 20591; telephone: (202) 267–8783. The FAA has determined that this SUPPLEMENTARY INFORMATION: proposed regulation only involves an Acting Manager, Rules and Regulations established body of technical Group. Authority for This Rulemaking [FR Doc. 2021–11423 Filed 6–1–21; 8:45 am] regulations for which frequent and The FAA’s authority to issue rules BILLING CODE 4910–13–P routine amendments are necessary to regarding aviation safety is found in keep them operationally current. It, Title 49 of the United States Code therefore: (1) Is not a ‘‘significant DEPARTMENT OF TRANSPORTATION (U.S.C.). Subtitle I, Section 106 regulatory action’’ under Executive describes the authority of the FAA Order 12866; (2) is not ‘‘significant’’ as Federal Aviation Administration Administrator. Subtitle VII, Aviation defined in Department of Transportation Programs, describes in more detail the (DOT) Regulatory Policies and 14 CFR Part 71 scope of the agency’s authority. This Procedures; and (3) does not warrant rulemaking is promulgated under the preparation of a regulatory evaluation as [Docket No. FAA–2021–0414; Airspace Docket No. 21–AAL–25] authority described in Subtitle VII, Part the anticipated impact is so minimal. A, Subpart I, Section 40103. Under that Since this is a routine matter that will RIN 2120–AA66 section, the FAA is charged with only affect air traffic procedures and air prescribing regulations to assign the use navigation, it is certified that this Proposed Revocation of Colored of the airspace necessary to ensure the proposed rule, when promulgated, will Federal Airway Red-4 (R–4) in Central safety of aircraft and the efficient use of not have a significant economic impact Alaska airspace. This regulation is within the on a substantial number of small entities AGENCY: Federal Aviation scope of that authority as it would under the criteria of the Regulatory Administration (FAA), DOT. modify the route structure as necessary Flexibility Act. ACTION: Notice of proposed rulemaking to preserve the safe and efficient flow of Environmental Review (NPRM). air traffic within the National Airspace System (NAS). This proposal will be subject to an SUMMARY: This action proposes to environmental analysis in accordance revoke Colored Federal airway R–4 in Comments Invited with FAA Order 1050.1F, central Alaska due to the scheduled Interested parties are invited to ‘‘Environmental Impacts: Policies and decommissioning of the Bear Creek participate in this proposed rulemaking Procedures’’ prior to any FAA final (BCC) Non-Directional Beacon (NDB) on by submitting such written data, views, regulatory action. December 2, 2021. or arguments, as they may desire.
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Comments that provide the factual basis Availability and Summary of regulations for which frequent and supporting the views and suggestions Documents for Incorporation by routine amendments are necessary to presented are particularly helpful in Reference keep them operationally current. It, developing reasoned regulatory This document proposes to amend therefore: (1) Is not a ‘‘significant decisions on the proposal. Comments FAA Order 7400.11E, Airspace regulatory action’’ under Executive are specifically invited on the overall Designations and Reporting Points, Order 12866; (2) is not ‘‘significant’’ as regulatory, aeronautical, economic, dated July 21, 2020, and effective defined in Department of Transportation environmental, and energy-related September 15, 2020. FAA Order (DOT) Regulatory Policies and aspects of the proposal. 7400.11E is publicly available as listed Procedures; and (3) does not warrant Communications should identify both in the ADDRESSES section of this preparation of a regulatory evaluation as docket numbers (FAA Docket No. FAA– document. FAA Order 7400.11E lists the anticipated impact is so minimal. 2021–0414; Airspace Docket No. 21– Class A, B, C, D, and E airspace areas, Since this is a routine matter that will AAL–25) and be submitted in triplicate air traffic service routes, and reporting only affect air traffic procedures and air to the Docket Management Facility (see points. navigation, it is certified that this ‘‘ADDRESSES’’ section for address and Background proposed rule, when promulgated, will phone number). You may also submit The FAA completed a study in not have a significant economic impact comments through the internet at February 2021 on a request to on a substantial number of small entities https://www.regulations.gov. decommission the BCC NDB in Tanana, under the criteria of the Regulatory Commenters wishing the FAA to AK. The FAA determined that the BCC Flexibility Act. acknowledge receipt of their comments NDB decommissioning was warranted Environmental Review on this action must submit with those due to the increased cost and difficulty comments a self-addressed, stamped in maintaining the equipment. The high This proposal will be subject to an postcard on which the following costs stem from no longer being environmental analysis in accordance statement is made: ‘‘Comments to FAA supported by FAA logistics or the with FAA Order 1050.1F, Docket No. FAA–2021–0414; Airspace manufacturer. Fabrication of parts for ‘‘Environmental Impacts: Policies and Docket No. 21–AAL–25.’’ The postcard the equipment is time consuming and is Procedures’’ prior to any FAA final will be date/time stamped and returned not cost effective. regulatory action. to the commenter. The effects of decommissioning the All communications received on or BCC NDB would be minimal on general List of Subjects in 14 CFR Part 71 before the specified comment closing aviation, since it does not support any instrument approaches. BCC NDB does, Airspace, Incorporation by reference, date will be considered before taking Navigation (air). action on the proposed rule. The however, support Federal Colored proposal contained in this action may Airway R–4, which navigates between The Proposed Amendment Bear Creek and the Chena, AK NDB. be changed in light of comments Federal Colored Airway R–4’s route received. All comments submitted will In consideration of the foregoing, the closely parallels VOR Federal Airways be available for examination in the Federal Aviation Administration V–488 and V–531, and United States public docket both before and after the proposes to amend 14 CFR part 71 as Area Navigation routes T–225 and comment closing date. A report follows: T–229, which should provide pilots an summarizing each substantive public acceptable alternative. PART 71—DESIGNATION OF CLASS A, contact with FAA personnel concerned B, C, D, AND E AIRSPACE AREAS; AIR with this rulemaking will be filed in the The Proposal TRAFFIC SERVICE ROUTES; AND docket. The FAA is proposing an amendment REPORTING POINTS Availability of NPRM to 14 CFR part 71 to revoke Colored Federal airway R–4, due to the ■ 1. The authority citation for part 71 An electronic copy of this document decommissioning of BCC NDB. The continues to read as follows: may be downloaded through the proposed change is outlined below. internet at https://www.regulations.gov. R–4: R–4 currently navigates between Authority: 49 U.S.C. 106(f), 106(g); 40103, Recently published rulemaking the Chena, AK, NDB and the Bear Creek, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, documents can also be accessed through AK, NDB. The FAA proposes to revoke 1959–1963 Comp., p. 389. the route in its entirety. the FAA’s web page at https:// § 71.1 [Amended] www.faa.gov/air_traffic/publications/ Colored Federal airways are airspace_amendments/. published in paragraph 6009(b), of FAA ■ 2. The incorporation by reference in Order 7400.11E, dated July 21, 2020, 14 CFR 71.1 of FAA Order 7400.11E, You may review the public docket and effective September 15, 2020, which containing the proposal, any comments Airspace Designations and Reporting is incorporated by reference in 14 CFR Points, dated July 21, 2020, and received and any final disposition in 71.1. The Colored Federal airway route person in the Dockets Office (see effective September 15, 2020, is listed in this document would be amended as follows: ADDRESSES section for address and subsequently removed from the Order. phone number) between 9:00 a.m. and FAA Order 7400.11, Airspace Paragraph 6009(b) Colored Federal 5:00 p.m., Monday through Friday, Designations and Reporting Points, is Airways. except Federal holidays. An informal published yearly and effective on * * * * * docket may also be examined during September 15. normal business hours at the office of R–4 [Remove] Regulatory Notices and Analyses the Operations Support Group, Western From Chena, AK, NDB; to Bear Creek, AK, Service Center, Federal Aviation The FAA has determined that this NDB. Administration, 2200 South 216th St., proposed regulation only involves an * * * * * Des Moines, WA 98198. established body of technical
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Issued in Washington, DC, on May 25, major home appliances and other Refrigeration Institute (AHRI) and DOE 2021. consumer products to help consumers staff input.5 As the Commission stated George Gonzalez, compare the energy usage and costs of in its February 2021 Rule (86 FR at Acting Manager, Rules and Regulations competing models. It also contains 9279), manufacturers may begin using Group. labeling requirements for refrigerators, the new range information prior to [FR Doc. 2021–11422 Filed 6–1–21; 8:45 am] refrigerator-freezers, freezers, January 1, 2023, in a manner consistent BILLING CODE 4910–13–P dishwashers, water heaters, clothes with DOE guidance once the FTC issues washers, room and portable air the final updates to appendices H and conditioners, furnaces, central air I. FEDERAL TRADE COMMISSION conditioners, heat pumps, plumbing products, lighting products, ceiling fans, III. Paperwork Reduction Act 16 CFR Part 305 and televisions. The Rule requires manufacturers to The current Rule contains [3084–AB15] attach yellow EnergyGuide labels to recordkeeping, disclosure, testing, and reporting requirements that constitute Energy Labeling Rule many of the covered products and prohibits retailers from removing these information collection requirements as AGENCY: Federal Trade Commission. labels or rendering them illegible. In defined by 5 CFR 1320.3(c), the definitional provision within the Office ACTION: Notice of proposed rulemaking. addition, it directs sellers, including retailers, to post label information on of Management and Budget (OMB) SUMMARY: The Federal Trade websites and in paper catalogs from regulations that implement the Commission (‘‘FTC’’ or ‘‘Commission’’) which consumers can order products. Paperwork Reduction Act (PRA). OMB proposes updates to comparability EnergyGuide labels for most covered has approved the Rule’s existing ranges and sample labels for central air products contain three main information collection requirements conditioners in the Energy Labeling disclosures: Estimated annual energy through December 31, 2022 (OMB Rule (‘‘Rule’’). cost, a product’s energy consumption or Control No. 3084–0069). The proposed DATES: Comments must be received on energy efficiency rating as determined amendments do not change the or before August 2, 2021. by Department of Energy (‘‘DOE’’) test substance or frequency of the procedures, and a comparability range recordkeeping, disclosure, or reporting ADDRESSES: Interested parties may file a comment online or on paper, by displaying the highest and lowest requirements and, therefore, do not following the instructions in the energy costs or efficiency ratings for all require further OMB clearance. Comment Submissions part of the similar models. Under the Rule, the Commission periodically updates IV. Regulatory Flexibility Act SUPPLEMENTARY INFORMATION section comparability range and annual energy below. Write ‘‘CAC Range Updates (16 The Regulatory Flexibility Act cost information based on manufacturer CFR part 305) (Matter No. R611004)’’ on (‘‘RFA’’), 5 U.S.C. 601–612, requires that data submitted pursuant to the Rule’s your comment, and file it online at the Commission conduct an analysis of reporting requirements.3 https://www.regulations.gov, by the anticipated economic impact of the following the instructions on the web- II. Proposed Updated Ranges for proposed amendment on small entities. based form. If you prefer to file your Central Air Conditioners The RFA requires that the Commission comment on paper, mail it to: Federal The Commission proposes to update provide an Initial Regulatory Flexibility Trade Commission, Office of the the comparability ranges for central air Analysis (‘‘IRFA’’) with a proposed rule Secretary, Suite CC–5610 (Annex J), 600 conditioners to ensure manufacturers unless the Commission certifies that the Pennsylvania Avenue NW, Washington, have information available for the rule will not have a significant DC 20580; or deliver your comment to: upcoming transition to new efficiency economic impact on a substantial Federal Trade Commission, Office of the descriptors required by DOE. On number of small entities. 5 U.S.C. 605. Secretary, Constitution Center, 400 7th February 12, 2021 (86 FR 9274), the As explained elsewhere in this Street SW, 5th Floor, Suite 5610 (Annex Commission published conforming Rule document, the proposed amendments J), Washington, DC 20024. amendments reflecting new DOE merely update the Rule’s appendices to FOR FURTHER INFORMATION CONTACT: efficiency descriptors on central air include revised comparability ranges Hampton Newsome (202–326–2889), conditioner labels to ensure the Rule’s and sample labels for central air Attorney, Division of Enforcement, consistency with DOE requirements, conditioners based on more recent data. Bureau of Consumer Protection, Federal which become effective on January 1, The proposed amendments do not Trade Commission, 600 Pennsylvania 2023.4 In the February Rule, the significantly change the substance or Avenue NW, Washington, DC 20580. Commission stated it would update frequency of the recordkeeping, SUPPLEMENTARY INFORMATION: ranges in appendices H and I, and the disclosure, or reporting requirements. sample labels in appendix L, once new Thus, the amendments will not have a I. Energy Labeling Rule efficiency numbers became available. ‘‘significant economic impact on a The Commission issued the Energy The Commission now proposes to substantial number of small entities.’’ 5 Labeling Rule (‘‘Rule’’) in 1979,1 amend the range tables (appendices H U.S.C. 605. The Commission has pursuant to the Energy Policy and and I) and sample labels in the Rule concluded, therefore, that a regulatory Conservation Act of 1975 (‘‘EPCA’’).2 (appendix L) using new information flexibility analysis is not necessary, and The Rule requires energy labeling for from the Air-Conditioning, Heating, & certifies, under Section 605 of the RFA (5 U.S.C. 605(b)), that the proposed 1 44 FR 66466 (Nov. 19, 1979). 3 16 CFR 305.10. amendments will not have a significant 2 42 U.S.C. 6294. EPCA also requires the 4 In 2017, DOE announced changes to the rating economic impact on a substantial Department of Energy (‘‘DOE’’) to develop test methods and associated efficiency descriptors for number of small entities. procedures that measure how much energy central air conditioners (e.g., from ‘‘Seasonal Energy appliances use, and to determine the representative Efficiency Ratio (SEER)’’ to ‘‘Seasonal Energy average cost a consumer pays for different types of Efficiency Ratio 2 (SEER2)’’). 82 FR 1786 (Jan. 6, 5 AHRI is a trade association representing central energy. 2017); and 82 FR 24211 (May 26, 2017). air conditioner manufacturers.
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V. Communications by Outside Parties the Commission by courier or overnight redact or remove it unless you submit a to the Commissioners or Their Advisors service. confidentiality request that meets the Because your comment will be placed requirements for such treatment under Written communications and on the publicly accessible website at FTC Rule § 4.9(c), and the General summaries or transcripts of oral https://www.regulations.gov, you are Counsel grants that request. communications respecting the merits solely responsible for making sure that The FTC Act and other laws the of this proceeding, from any outside your comment does not include any Commission administers permit the party to any Commissioner or sensitive or confidential information. In collection of public comments to Commissioner’s advisor, will be placed particular, your comment should not consider and use in this proceeding as on the public record. See 16 CFR include any sensitive personal appropriate. The Commission will 1.26(b)(5). information, such as your or anyone consider all timely and responsive VI. Comment Submissions else’s Social Security number; date of public comments it receives on or before birth; driver’s license number or other August 2, 2021. For information on the You can file a comment online or on state identification number, or foreign paper. For the FTC to consider your Commission’s privacy policy, including country equivalent; passport number; routine uses permitted by the Privacy comment, we must receive it on or financial account number; or credit or before August 2, 2021. Write ‘‘CAC Act, see https://www.ftc.gov/site- debit card number. You are also solely information/privacy-policy. Range Updates (16 CFR part 305) responsible for making sure your (Matter No. R611004)’’ on your comment does not include any sensitive VII. Other Matters comment. Your comment, including health information, such as medical Pursuant to the Congressional Review your name and your state, will be records or other individually Act (5 U.S.C. 801 et seq.), the Office of placed on the public record of this identifiable health information. In Information and Regulatory Affairs proceeding, including, to the extent addition, your comment should not designated this rule as not a ‘‘major practicable, on the https:// include any ‘‘[t]rade secret or any rule,’’ as defined by 5 U.S.C. 804(2). www.regulations.gov website. commercial or financial information Because of the public health which . . . is privileged or Proposed Rule Language emergency in response to the COVID–19 confidential’’—as provided in Section List of Subjects in 16 CFR Part 305 outbreak and the agency’s heightened 6(f) of the FTC Act, 15 U.S.C. 46(f), and security screening, postal mail FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— Advertising, Energy conservation, addressed to the Commission will be including in particular competitively Household appliances, Labeling, subject to delay. We strongly encourage sensitive information such as costs, Reporting and recordkeeping you to submit your comment online sales statistics, inventories, formulas, requirements. through the https://www.regulations.gov patterns, devices, manufacturing For the reasons stated above, the website. To ensure the Commission processes, or customer names. Commission proposes to amend part considers your online comment, please Comments containing material for 305 of title 16 of the Code of Federal follow the instructions on the web- which confidential treatment is Regulations as follows: based form. requested must be filed in paper form, If you file your comment on paper, must be clearly labeled ‘‘Confidential,’’ PART 305—ENERGY AND WATER USE write ‘‘CAC Range Updates (16 CFR part and must comply with FTC Rule LABELING FOR CONSUMER 305) (Matter No. R611004)’’ on your § 4.9(c). In particular, the written PRODUCTS UNDER THE ENERGY comment and on the envelope, and mail request for confidential treatment that POLICY AND CONSERVATION ACT your comment to the following address: accompanies the comment must include (‘‘ENERGY LABELING RULE’’) Federal Trade Commission, Office of the the factual and legal basis for the Secretary, 600 Pennsylvania Avenue request, and must identify the specific ■ 1. The authority citation for part 305 NW, Suite CC–5610 (Annex J), portions of the comment to be withheld continues to read as follows: Washington, DC 20580, or deliver your from the public record. See FTC Rule Authority: 42 U.S.C. 6294. comment to the following address: § 4.9(c). Your comment will be kept ■ 2. Revise appendix H to part 305 to Federal Trade Commission, Office of the confidential only if the General Counsel read as follows: Secretary, Constitution Center, 400 7th grants your request in accordance with Street SW, 5th Floor, Suite 5610 (Annex the law and the public interest. Once Appendix H to Part 305—Cooling J), Washington, DC 20024. If possible, your comment has been posted publicly Performance for Central Air please submit your paper comment to at www.regulations.gov, we cannot Conditioners
Manufacturer’s rated cooling capacity Range of SEER2’s (btu’s/hr) Low High
Single Package Units
Central Air Conditioners (Cooling Only): All capacities ...... 13.4 19 Heat Pumps (Cooling Function): All capacities ...... 13.4 19
Split System Units
Central Air Conditioner models allowed only in northern states (listed in § 305.20(g)(13)) (Cooling Only): All ca- pacities ...... 13.4 27 Central Air Conditioner models allowed in all states (Cooling Only): All capacities ...... 13.8 27 Heat Pumps (Cooling Function): All capacities ...... 14.3 42 Small-duct, high-velocity Systems ...... 12 15
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Manufacturer’s rated cooling capacity Range of SEER2’s (btu’s/hr) Low High
Space-Constrained Products
Central Air Conditioners (Cooling Only): All capacities ...... 11.7 13.7 Heat Pumps (Cooling Function): All capacities ...... 11.9 13.8
■ 3. Revise appendix I to part 305 to Appendix I to Part 305—Heating read as follows: Performance and Cost for Central Air Conditioners
Manufacturer’s rated heating capacity Range of HSPF2’s (btu’s/hr.) Low High
Single Package Units
Heat Pumps (Heating Function): All capacities ...... 6.7 8.4
Split System Units
Heat Pumps (Heating Function): All capacities ...... 7.5 14.6 Small-duct, high-velocity Systems ...... 6.1 7.5
Space-Constrained Products
Heat Pumps (Heating Function): All capacities ...... 6.3 6.5
■ 4. Amend appendix L to part 305 by Label 4, Sample Label 7, and Sample Appendix L to Part 305—Sample Labels revising Prototype Label 3, Prototype Label 8 to read as follows: * * * * * BILLING CODE 6750–01–P
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10 pt. ----1• U.S. Government Federal law prohibits removal of this label before consumer purchase. -illl--- 9 pt. Arial Narrow Arial Narrow
...... __ 10/12 10/12----4~ CentralAirConditioner XYZ Corporation Anal Narrow Bold Cooling Only ModelNH65 Arial Narrow Bold Single Package Capacity: 59,000Btu/h
1 pt. rule----4-..·r------, 19 pl.----4--1~ Efficiency Rating (SEER2)*-4'------+---- 12p1. Arial Narrow Bold Arial Narrow Bold 38 pt.Arial Bold----+--1►14 ■ 4 12 pt. triangle 3 pt. rule :W' 2 pt. rule d; 1 For energy cost info, visit ◄H----12114 ,... f Arial Narrow 10 pt Arial Narrow Bold ----+--I► 22_3 productin o.energy.gov 8/9.6Arial Narrow ----+---1► Least Efficient Most Efflclent 11 pt. Arial Narrow ----+--+---. Range of Similar Models 8112 Arial Narrow • Seasonal Energy Efficiency Ratio 2
18 pt. Arial Narrow Bold----+--1► Notice 14116.BArial Narrow Federal law allows this unit to be installed only in: bold where indicated
Mll----+-1►~~~~~~~~~ Arial Narrow HI, ID, IL, IA, IN, KS, KY, LA, MA, ME, MD, Ml, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WV, WI, WY, and U.S. territories. B Installation allowed 11 pt.Arial Narrow ----+---► Federal law prohibits installation of this unit in other states.
10 P'-----1-. Energy Efficiency Ratio 2 (EER2): Thisunrt"sEER2 is 10.5. ◄I------+---- 8 pt. Arial Narrow Bold Arial Narrow
Prototype Label 3 - Single-Package Central Air Conditioner
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10 pt---► U.S. Government Federal law prohibits removal of this label before consumer purchase. -4111--- 9 pt. Arial Narrow Arial Narrow
10/12---1• Heat Pump XYZCmporatlon --1----10/12 Arial Narrow Bold Cooling and Heating Model 6645 Arial Narrow Bold Split System Heating Capacity 26,000 Btu/h Cooling Capacity 25,000 Btu/11
1 pl rule•----1--a► Cooling ·A19na!2f2Na-rrow-Bo-l_d~~-► Efficiency Rating (SEER2)* -4------+---12pt. Arial NarrowBold 1 ~ Bold 14.3-16.0 7 pt. triangle W 2pt. rule .., __ ..______...-,, This system's --I---- 12/14 efficiency ratings depend Arial Narrow iOptArial Narrow Bold 14.3 42.0 on the coil your contractor 8/9.6 Arial Narrow Least Efficient P,lost Efficient installs with this unit The 11 pt. Arial Narrow Range of Similar Models heating efficiency rating 8/12 Arial Narrow • Seasonal Eneigy Ellicie!tcY Ratio2 varies slighUy in different geographic regions. Ask your contractor for detail!!; Heating Efficiency Rating (HSPF2)* 8.6-10.0 r--.' Forenergy cosfirifu, visit ◄t-1---- 12114 7.5 14.6 productinfo.energy.gov Arial Narrow leao!Efficienl MostEfficient Range of Similar Models • Heating Seasonal Pellormanca Facfur 2.
Prototype Label 4 - Split-system Heat Pump
* * * * *
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U.S. Government Federal law prohibits removal of this label before consumer purchase.
Central Air Conditioner XYZ Corporation Cooling Only Model NH65 Split System
Efficiency Rating (SEER2)* 14.1 For energy cost info, visit ~ productinfo.energy.gov 13.4 27.0 Least Efficient Most Efficient • Your air conditioner's efficiency Range of Similar Models rating may be better depending on the coil your contractor installs. • Seasonal Energy Efficiency Ratio 2
Notice Federal law allows this unit to be installed only in:
AK, CO, CT, ID, IL, IA, IN, KS, MA, ME, Ml, MN, MO, MT, ND, NE, NH NJ, NY, OH, OR, PA, RI, SD, UT, VT WA, WV, WI, WY, and U.S. territories.
II Installation allowed Federal law prohibits installation of this unit in other states.
Energy Efficiency Ratio 2 (EER2): This unit's EER2 is 11.6.
Sample Label 7 - Split-system Central Air Conditioner
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U.S. Government Federal law prohibits removal of this label before consumer purchase.
Heat Pump XVZ Corporation Cooling and Heating Model 6645 Split System Heating Capacity 26,000 Btu/h Cooling Capacity 25,000 Btu/h
Cooling Efficiency Rating (SEER2)* 14.3-16.0 w ~ This system's I efficiency ratings depend 14.3 42.0 on the coil your contractor Least Efficient Most Efficient installs with this unit. The Range of Similar Models heating efficiency rating • Seasonal Energy Efficiency Ratio 2 varies slightly in different geographic regions. Ask your contractor for details. Heating Efficiency Rating (HSPF2)* 8.6-10.0
• • For energy cost info, visit 7.5 14.6 productinfo.energy .gov Least Efficient Most Efficient Range of Similar Models • Heating Seasonal Performance Factor 2
Sample Label 8 - Split-system Heat Pump
BILLING CODE 6750–01–C Dissenting Statement of Commissioner piecemeal approach has clarified the Rule’s * * * * * Christine S. Wilson requirements—and I appreciate FTC staff’s efforts to keep this Rule clear and current— By direction of the Commission. Today the Commission announces required but the Commission can and should do more. April J. Tabor, changes to the Energy Labeling Rule but For the reasons described below, I dissent. makes no other changes to the Rule. Since Secretary. 2015, the Commission has sought comment portable air conditioners, ceiling fans, and electric Note: The following statement will not on provisions of this Rule at least three times, 1 water heaters); 84 FR 9261 (Mar. 14, 2019) appear in the Code of Federal Regulations. and has made numerous amendments. This (proposing amendments to organize the Rule’s product descriptions); 85 FR 20218 (Apr. 10, 2020) 1 See 81 FR 62861 (Sept. 12, 2016) (seeking (seeking comment on proposed amendments comment on proposed amendments regarding regarding central and portable air conditioners).
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I have repeatedly urged the Commission 2 noted previously,5 no area of commerce was finished or dyed with aniline dye or to seek comment on the more prescriptive too straightforward or mundane to escape the otherwise dyed, embossed, grained, aspects of this Rule. As I have noted in prior Commission’s notice: processed, finished or stitched in a certain statements, the Rule includes highly • The Trade Regulation Rule concerning manner; and required disclosures to be made prescriptive requirements detailing the trim Deception as to Non-Prismatic and Partially with respect to a product’s composition.8 size dimensions for labels, including the Prismatic Instruments Being Prismatic In March 2020, we sought comment on 1 ″ 1 ″ 6 precise width (between 5 ⁄4 to 5 ⁄2 ) and Binoculars addressed failures to disclose some of the more prescriptive provisions of 3 ″ 5 ″ length (between 7 ⁄8 and 7 ⁄8 ); the number ‘‘instruments having bulges on the tubes the Energy Labeling Rule 9 and received of picas for the copy set (between 27 and 29); which simulate prismatic instruments are not many interesting and thoughtful comments.10 the type style (Arial) and setting; the weight prismatic instruments or do not contain Rather than act on these comments or of the paper stock on which the labels are complete prism systems’’ and provided proposals, though, the Commission chose to printed (not less than 58 pounds per 500 detailed definitions of six types of binoculars finalize only proposals necessary to conform sheets or equivalent); and a suggested and field glasses. 11 minimum peel adhesive capacity of 12 • to Department of Energy changes. Again The Trade Regulation Rule concerning today, the Commission chooses to make ounces per square inch.3 For example, the Failure to Disclose that Skin Irritation May minor changes necessary for conformity but label example attached to the Rule specifies Result from Washing or Handling Glass Fiber fails to conduct a full review of the Rule to not only the categories of information to be Curtains and Draperies included a consider removing all dated and prescriptive displayed, but also the precise font and point Commission conclusion that ‘‘the failure to size in which that information is to be disclose that skin irritation may result from provisions, and to consider the recent printed. For example, the cooling efficiency body contact with glass fiber drapery and comments suggesting changes. number must appear in 38 pt. Arial Narrow curtain fabrics, and clothing or other articles The Commission last conducted a full Bold. And while the phrase ‘‘US which have been washed with such glass review of the Energy Labeling Rule in 2015. Government’’ at the top must be printed in fiber products or in containers previously Under our 10-year regulatory review 10 pt. Arial Narrow, the text next to it that used for washing such products when that schedule, the next review is scheduled for reads ‘‘Federal law prohibits removal of this container has not been cleansed of glass 2025. Nothing, however, prevents the label before consumer purchase’’ must be particles, has the capacity and tendency to Commission from conducting this review printed in 9 pt. Arial Narrow. See mislead and deceive purchasers and now. I again urge the Commission to act on Attachment 1 (Labeling Requirements). prospective purchasers and to divert business the comments we received last year, The Energy Labeling Rule exemplifies the from competitors whose products may be eliminate the more prescriptive aspects of the era in which it was created. The FTC washed or handled without the resulting Rule, and maximize the positive impact of promulgated the Rule in the 1970s, an era irritation.’’ 7 this Rule for consumers. If we are statutorily when the agency was engaged in prolific and • The Guides for the Ladies’ Handbag mandated to maintain this Rule, we should 4 highly prescriptive rulemaking. As I have Industry addressed the use of the terms endeavor to make it beneficial for consumers ‘‘scuffproof,’’ ‘‘scratchproof,’’ ‘‘scuff and competition. 2 See Dissenting Statement of Commissioner resistant,’’ and ‘‘scratch resistant;’’ Christine S. Wilson on the Notice of Proposed representations that a product is colored, Rulemaking: Energy Labeling Rule (Dec. 10, 2018) 8 16 CFR 247, https://www.ftc.gov/sites/default/ (expressing my view that the Commission should files/documents/federal_register_notices/guides- seek comment on the prescriptive labeling Standard of Unfairness, 11 Akron Law Rev. 1 (1978) luggage-and-related-products-industry-guides-shoe- requirements), https://www.ftc.gov/public- (explaining that the judicial reversals of FTC content-labeling-and-advertising-and-guides/ statements/2018/12/dissenting-statement- regulations resulted from a failure to establish an 950918luggageandrelatedproducts.pdf. commissioner-christine-s-wilson-notice-proposed; adequate legal basis for the regulations), available 9 See Concurring Statement of Commissioner See Dissenting Statement of Commissioner at: https://ideaexchange.uakron.edu/ Christine S. Wilson on the Notice of Proposed Christine S. Wilson on the Notice of Proposed akronlawreview/vol11/iss1/1/. Rulemaking: Energy Labeling Rule (Mar. 20, 2020), Rulemaking: Energy Labeling Rule (Oct. 22, 2019) 5 See Concurring Statement of Commissioner https://www.ftc.gov/system/files/documents/ (urging the Commission to seek comment on the Christine S. Wilson, Amplifier Rule (Dec. 17, 2020), public_statements/1569815/r611004_wilson_ labeling requirements), https://www.ftc.gov/system/ https://www.ftc.gov/system/files/documents/ statement_energy_labeling.pdf. files/documents/public_statements/1551786/ public_statements/1585038/csw_amplifier_rule_ 10 See, e.g., Air-Conditioning, Heating and r611004_wilson_dissent_energy_labeling_rule.pdf. stmt_11192020.pdf; Dissenting Statement of Refrigeration Institute (AHRI) Comment (#33–09), 3 See 16 CFR 305.13 and 305.20. Commissioner Christine S. Wilson on the Notice of available at: https://www.regulations.gov/ 4 See, e.g., Timothy J. Muris, Paper: Will the Proposed Rulemaking: Energy Labeling Rule (Dec. document?D=FTC-2020-0033-0009; Association of FTC’s Success Continue?, George Mason Law & 10, 2018), https://www.ftc.gov/public-statements/ Home Appliance Manufacturers (AHAM) Comment Economics No. 18 (Sept. 24, 2018) (discussing the 2018/12/dissenting-statement-commissioner- (#33–04), available at: https://www.regulations.gov/ successes and failures of the FTC’s enforcement christine-s-wilson-notice-proposed. document?D=FTC-2020-0033-0004; Goodman efforts including the aggressive rulemaking 6 16 CFR 402, https://www.ftc.gov/sites/default/ Manufacturing Comment (#33–08), available at: activities in the 1970s), available at: https:// files/documents/federal_register_notices/trade- https://www.regulations.gov/document?D=FTC- papers.ssrn.com/sol3/papers.cfm?abstract_ regulation-rule-concerning-deception-non- 2020-0033-0008. id=3254294; Timothy J. Muris, Rules Without prismatic-and-partially-prismatic-instruments- 11 See Dissenting Statement of Commissioner Reason, AEI J. on Gov’t and Society (Sept/Oct. being/950523non-prismatic.pdf. Christine S. Wilson on Notice of Proposed 1982) (describing failed FTC rulemaking 7 16 CFR 413.3(c), https://www.ftc.gov/sites/ Rulemaking: Energy Labeling Rule (Dec. 22, 2020), proceedings), available at: https://www.cato.org/ default/files/documents/federal_register_notices/ https://www.ftc.gov/system/files/documents/ sites/cato.org/files/serials/files/regulation/1982/9/ trade-regulation-rule-deceptive-advertising-and- public_statements/1585242/commission_wilson_ v6n5-4.pdf; Teresa Schwartz, Regulating Unfair labeling-size-tablecloths-and-related-products-16/ dissenting_statement_energy_labeling_rule_final12- Practices Under The FTC Act: The Need For a Legal 950523advertisingandlabelingasto.pdf. 22-2020revd2.pdf.
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[FR Doc. 2021–11498 Filed 6–1–21; 8:45 a.m.] and revise the Clean Water Act Section EPA–HQ–OW–2021–0302, by any of the BILLING CODE 6750–01–P 401 Certification Rule. In addition, EPA following methods: will initiate a series of stakeholder • Federal eRulemaking Portal: outreach sessions and invite written https://www.regulations.gov/ (our ENVIRONMENTAL PROTECTION feedback on how to revise the preferred method). Follow the online AGENCY requirements for water quality instructions for submitting written certifications under the Clean Water feedback. • 40 CFR Part 121 Act. EPA intends to revise the Clean Email: [email protected]. Include Docket ID No. EPA–HQ–OW– [EPA–HQ–OW–2021–0302; FRL–10023–97– Water Act Section 401 Certification Rule in a manner that is well informed by 2021–0302 in the subject line of the OW] message. stakeholder input on the rule’s Instructions: All submissions received Notice of Intention To Reconsider and substantive and procedural components; must include the Docket ID Number. Revise the Clean Water Act Section is better aligned with the cooperative 401 Certification Rule Written feedback received may be federalism principles that have been posted without change to https:// AGENCY: Environmental Protection central to the effective implementation www.regulations.gov/, including any Agency (EPA). of the Clean Water Act; and is personal information provided. Out of responsive to the national objectives ACTION: Notice of intent. an abundance of caution for members of outlined in President Biden’s Executive the public and our staff, the EPA Docket SUMMARY: In accordance with Protecting Order 13990. Center and Reading Room are closed to Public Health and the Environment and DATES: Written feedback must be the public, with limited exceptions, to Restoring Science to Tackle the Climate received on or before August 2, 2021. reduce the risk of transmitting COVID– Crisis (Executive Order 13990), the U.S. 19. Our Docket Center staff will Environmental Protection Agency (EPA) ADDRESSES: You may send written continue to provide remote customer announces its intention to reconsider feedback, identified by Docket ID No. service via email, phone, and webform.
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We encourage the public to submit 40 CFR part 121. Clean Water Act feedback; the principles outlined in the written feedback via https:// Section 401 Certification Rule (‘‘401 Executive Order; and issues raised in www.regulations.gov/ or email, as there Certification Rule’’), 85 FR 42210 (July ongoing litigation challenges to the 401 may be a delay in processing mail and 13, 2020). Certification Rule. As described below, faxes. Hand deliveries and couriers may On January 20, 2021, President Biden the agency has identified substantial be received by scheduled appointment signed Executive Order 13990 directing concerns with a number of provisions of only. For further information on EPA federal agencies to review rules issued the 401 Certification Rule that relate to Docket Center services and the current in the prior four years that are, or may cooperative federalism principles and status, please visit us online at https:// be, inconsistent with the policy stated CWA Section 401’s goal of ensuring that www.epa.gov/dockets. in the order. Protecting Public Health states are empowered to protect their FOR FURTHER INFORMATION CONTACT: and the Environment and Restoring water quality. Lauren Kasparek, Oceans, Wetlands and Science to Tackle the Climate Crisis, Agencies have inherent authority to Communities Division, Office of Water Executive Order 13990, 86 FR 7037 reconsider past decisions and to revise, (4502–T), U.S. Environmental (published January 25, 2021, signed replace, or repeal a decision to the Protection Agency, 1200 Pennsylvania January 20, 2021). The order provides extent permitted by law and supported Avenue NW, Washington, DC 20460; that ‘‘[i]t is, therefore, the policy of my by a reasoned explanation. FCC v. Fox telephone number: (202) 564–3351; Administration to listen to the science; Television Stations, Inc., 556 U.S. 502, email address: [email protected]. to improve public health and protect 515 (2009) (‘‘Fox’’); Motor Vehicle our environment; to ensure access to Manufacturers Ass’n of the United SUPPLEMENTARY INFORMATION: Clean clean air and water; to limit exposure to States, Inc. v. State Farm Mutual Water Act (CWA) Section 401 provides 1 2 dangerous chemicals and pesticides; to Automobile Insurance Co., 463 U.S. 29, states and tribes with a powerful tool hold polluters accountable, including 42 (1983) (‘‘State Farm’’). Importantly, to protect the quality of their waters those who disproportionately harm such a revised decision need not be from adverse impacts resulting from communities of color and low-income based upon a change of facts or federally licensed or permitted projects. communities; to reduce greenhouse gas circumstances. A revised decision based Under CWA Section 401, a federal emissions; to bolster resilience to the ‘‘on a reevaluation of which policy agency may not issue a license or permit impacts of climate change; to restore would be better in light of the facts’’ is to conduct any activity that may result and expand our national treasures and ‘‘well within an agency’s discretion’’ in any discharge into navigable waters, monuments; and to prioritize both National Ass’n of Home Builders v. unless the state or tribe where the environmental justice and the creation EPA, 682 F.3d 1032, 1038 (D.C. Cir. discharge would originate either issues of the well-paying union jobs necessary 2012) (citing Fox, 556 U.S. at 514–15). a CWA Section 401 water quality to deliver on these goals.’’ Id. at 7037, EPA does not intend to replace the certification finding ‘‘that any such Section 1. The order ‘‘directs all 401 Certification Rule with the 1971 discharge will comply with the executive departments and agencies regulation. Instead, EPA plans to applicable provisions of Sections 301, (agencies) to immediately review and, as reconsider and revise the 401 302, 303, 306, and 307’’ of the CWA, or appropriate and consistent with Certification Rule consistent with the certification is waived. 33 U.S.C. applicable law, take action to address principles outlined in the Executive 1341(a)(1). When granting a CWA the promulgation of Federal regulations Order and the agency’s legal authority. Section 401 certification, states and and other actions during the last 4 years Additionally, EPA seeks to revise the tribes are directed by CWA Section that conflict with these important rule in a manner that promotes 401(d) to include conditions, including national objectives, and to immediately efficiency and certainty in the ‘‘effluent limitations and other commence work to confront the climate certification process, that is well- limitations, and monitoring crisis.’’ Id. ‘‘For any such actions informed by stakeholder input on the requirements’’ that are necessary to identified by the agencies, the heads of 401 Certification Rule’s substantive and assure that the applicant for a federal agencies shall, as appropriate and procedural components, and that is license or permit will comply with consistent with applicable law, consider consistent with the cooperative applicable provisions of CWA Sections suspending, revising, or rescinding the federalism principles central to CWA 301, 302, 306, and 307, and with ‘‘any agency actions.’’ Id. at 7037, Section Section 401. other appropriate requirement of State 2(a). The 401 Certification Rule was Questions for Consideration law.’’ Id. at 1341(d). identified for review under the EPA promulgated implementing Executive Order. See Fact Sheet: List of The issues EPA intends to reconsider regulations for water quality Agency Actions for Review, available at include, but are not limited to, whether certification (1971 regulation) 3 prior to https://www.whitehouse.gov/briefing- the rule appropriately considers the 1972 amendments to the Federal room/statements-releases/2021/01/20/ cooperative federalism principles Water Pollution Control Act (commonly fact-sheet-list-of-agency-actions-for- central to CWA Section 401. EPA has known as the Clean Water Act or CWA), review/ (last visited on April 26, 2021). substantial concerns about whether which created Section 401. In 2020, EPA has completed its initial review portions of the rule impinge on those EPA revised these regulations found at of the 401 Certification Rule and principles. EPA also intends to determined that it will propose reconsider whether certain procedural 1 The CWA defines ‘‘state’’ as ‘‘a State, the District revisions to the rule through a new components of the rule improve, or of Columbia, the Commonwealth of Puerto Rico, the rulemaking effort. The agency has impede, the certification and licensing/ Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, considered the following factors in permitting processes. To assist in its and the Trust Territory of the Pacific Islands.’’ 33 making this determination, including development of a proposed revision, U.S.C. 1362(3). but not limited to: The text of CWA EPA is considering specific provisions 2 Tribes refers to tribes that have been approved Section 401; Congressional intent and of the rule for potential revision. EPA for ‘‘treatment in a manner similar to a State’’ status the cooperative federalism framework of welcomes feedback related to key issues for CWA Section 401. See 33 U.S.C. 1377(e). 3 36 FR 22487, November 25, 1971, redesignated CWA Section 401; concerns raised by identified during implementation of the at 37 FR 21441, October 11, 1972, further stakeholders about the 401 Certification 401 Certification Rule, including but not redesignated at 44 FR 32899, June 7, 1979. Rule, including implementation related limited to, the following:
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1. Pre-filing meeting requests. The seeking stakeholder input on the conditions or denying certification. Id. rule requires project proponents to process for determining and modifying at 121.7(c)–(e). Additionally, the rule submit a ‘‘pre-filing meeting request’’ to the reasonable period of time, including requires federal agencies to review certifying authorities at least 30 days but not limited to, whether additional certifying authority actions to determine prior to submitting a certification factors should be considered by federal whether they comply with the request. 40 CFR 121.4. EPA is interested agencies when setting the reasonable procedural requirements of CWA in the utility of the pre-filing meeting period of time, whether other Section 401 and the 401 Certification process to date, including but not stakeholders besides federal agencies Rule. Id. at 121.9. Among other issues, limited to, whether the pre-filing have a role in defining and extending EPA is concerned that a federal agency’s meetings have improved or increased the reasonable period of time, and any review may result in a state or tribe’s early stakeholder engagement, whether implementation challenges or certification or conditions being the minimum 30 day timeframe should improvements identified through permanently waived as a result of be shortened in certain instances (e.g., application of the rule’s requirements nonsubstantive and easily fixed where a certifying authority declines to for the reasonable period of time. procedural concerns identified by the hold a pre-filing meeting), and how 4. Scope of certification. The rule federal agency. EPA is seeking certifying authorities have approached limits the scope of certification, which stakeholder input on the certification pre-filing meeting requests and meetings includes both the scope of certification action process steps, including but not to date. review under CWA Section 401(a) and limited to, whether there is any utility 2. Certification request. The rule the scope of certification conditions in requiring specific components and defines a certification request as ‘‘a under CWA Section 401(d), to ‘‘assuring information for certifications with written, signed, and dated that a discharge from a Federally conditions and denials, whether it is communication that satisfies the licensed or permitted activity will appropriate for federal agencies to requirements of [section] 121.5(b) or comply with water quality review certifying authority actions for (c).’’ Id. at 121.1(c). Among other issues, requirements.’’ Id. at 121.3. The rule consistency with procedural EPA is concerned that the rule defines ‘‘water quality requirements,’’ as requirements or any other purpose, and constrains what states and tribes can the ‘‘applicable provisions of [sections] if so, whether there should be greater require in certification requests, 301, 302, 303, 306, and 307 of the Clean certifying authority engagement in the potentially limiting state and tribal Water Act, and state or tribal regulatory federal agency review process including ability to get information they may need requirements for point source an opportunity to respond to and cure before the CWA Section 401 review discharges into waters of the United any deficiencies, whether federal process begins. EPA is interested in States.’’ Id. at 121.1(n). Among other agencies should be able to deem a stakeholder input on this definition and issues, EPA is concerned that the rule’s certification or conditions as ‘‘waived,’’ the elements of a certification request narrow scope of certification and and whether, and under what contained at 40 CFR 121.5, including conditions may prevent state and tribal circumstances, federal agencies may but not limited to, the sufficiency of the authorities from adequately protecting reject state conditions. elements described in 40 CFR 121.5(b) their water quality. EPA is seeking 6. Enforcement. The rule provides and (c), and whether stakeholders have stakeholder input on the rule’s that federal agencies are responsible for experienced any process improvements interpretation of the scope of enforcing certification conditions that or deficiencies by having a single certification and certification are incorporated into a federal license or defined list of required certification conditions, and the definition of ‘‘water permit. Id. at 121.11(c). The rule does request components applicable to all quality requirements’’ as it relates to the not provide a role for certifying certification actions. statutory phrase ‘‘other appropriate authorities to enforce certification 3. Reasonable period of time. CWA requirements of state law,’’ including conditions under federal law. Section 401 requires a certifying but not limited to, whether the agency Additionally, the rule restates the authority to act on a certification request should revise its interpretation of scope statutory provision that provides within a defined time period known as to include potential impacts to water certifying authorities with the ability to the ‘‘reasonable period of time.’’ The quality not only from the ‘‘discharge’’ inspect certified projects prior to their rule requires the federal licensing or but also from the ‘‘activity as a whole’’ initial operation. Id. at 121.11(a). EPA is permitting agency to determine the consistent with Supreme Court case interested in stakeholder feedback on reasonable period of time using a series law, whether the agency should revise enforcement of CWA Section 401, of factors, provided that the time does its interpretation of ‘‘other appropriate including but not limited to, the roles of not exceed one year from the date a requirements of State law,’’ and whether federal agencies and certifying certifying authority receives a the agency should revise its authorities in enforcing certification certification request. Id. at 121.6. interpretation of scope of certification conditions, whether the statutory Additionally, the rule allows federal based on implementation challenges or language in CWA Section 401 supports agencies to extend the reasonable period improvements identified through the certifying authority enforcement of of time within that one year time period application of the newly defined scope certification conditions under federal at a certifying authority or project of certification. law, whether the CWA citizen suit proponent’s request, but does not allow 5. Certification actions and federal provision applies to Section 401, and certifying authorities to take any other agency review. The rule provides that the rule’s interpretation of a certifying action to extend or modify the certifying authorities may take one of authority’s inspection opportunities. reasonable period of time. Id. Among four actions on a certification request, 7. Modifications. The rule removed other issues, EPA is concerned that the including granting certification, granting the 1971 regulation’s provision that rule does not allow state and tribal certification with conditions, denying allowed for modifications where agreed authorities a sufficient role in setting the certification, or waiving certification. upon by the certifying authority, federal timeline for reviewing certification See id. at 121.7, 121.9. The rule requires agency, and EPA. See 85 FR 42220 (July requests and limits the factors that that certifying authorities include 13, 2020). Additionally, the rule federal agencies may use to determine specific information when granting prevents certifying authorities from the reasonable period of time. EPA is certification, granting certification with extending the reasonable period time
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unilaterally, including but not limited 10. Implementation coordination. opportunity to speak can be submitted to, the use of conditions intended to EPA is interested in hearing from to the docket as described above. reopen a certification (‘‘reopeners’’). stakeholders about facilitiating Michael S. Regan, Among other issues, EPA is concerned implementation of any rule revisions. Administrator. that the rule’s prohibition of For example, given the relationship modifications may limit the flexibility between federal provisions and state [FR Doc. 2021–11513 Filed 6–1–21; 8:45 am] of certifications and permits to adapt to processes for water quality certification, BILLING CODE 6560–50–P changing circumstances. EPA is should EPA consider specific interested in stakeholder feedback on implementation timeframes or effective modifications and ‘‘reopeners,’’ dates to allow for adoption and DEPARTMENT OF COMMERCE including but not limited to, whether integration of water quality provisions the statutory language in CWA Section National Oceanic and Atmospheric at the state level. Similarly, EPA is Administration 401 supports modification of interested in receiving feedback on certifications or ‘‘reopeners,’’ the utility whether concomitant regulatory changes 50 CFR Part 660 of modifications (e.g., specific should be proposed and finalized circumstances that may warrant simultaneously by relevant federal [RTID 0648–XA696] modifications or ‘‘reopeners’’), and agencies (e.g., the Army Corps of Fisheries Off West Coast States; West whether there are alternate solutions to Engineers, Federal Energy Regulatory Coast Salmon Fisheries; Amendment the issues that could be addressed by Commission) so that implementation of certification modifications or 21 to the Pacific Coast Salmon Fishery revised water certification provisions Management Plan ‘‘reopeners’’ that can be accomplished would be more effectively coordinated through the federal licensing or and would avoid circumstances where AGENCY: National Marine Fisheries permitting process. regulations could be interpreted as Service (NMFS), National Oceanic and 8. Neighboring jurisdictions. The rule inconsistent with one another. Atmospheric Administration (NOAA), addresses the so-called ‘‘neighboring Commerce. Outreach jurisdiction’’ process in CWA Section ACTION: Announcement of availability of 401(a)(2), including interpreting the EPA is aware that CWA Section 401 fishery management plan amendment; timeframe in which a federal agency request for comments. must notify EPA for purposes of Section and the 401 Certification Rule are of 401(a)(2) and providing process interest to many states, tribes, federal SUMMARY: The Pacific Fishery requirements for the agency’s analysis agencies, project proponents, and the Management Council (Council) has and the neighboring jurisdictions’ public because of the relationship submitted Amendment 21 to the Pacific review and response. EPA is interested between water quality certifications and Coast Salmon Fishery Management Plan in stakeholder feedback on the federal licensing and permitting (FMP) to the Secretary of Commerce for neighboring jurisdiction process, processes. As a result, EPA wants to review. If approved, Amendment 21 including but not limited to, whether ensure that it has the opportunity to would set an annual Chinook salmon the agency should elaborate in consider stakeholder input prior to abundance threshold below which the regulatory text or preamble on revising the 401 Certification Rule. EPA Council and NMFS would implement considerations informing its analysis intends to have multiple webinar-based specific management measures, through under CWA Section 401(a)(2), whether listening sessions to solicit feedback on the annual ocean salmon management the agency’s decision whether to make potential approaches to revise the 401 measures, to limit ocean salmon fishery a determination under CWA Section Certification Rule. During these impacts on the availability of Chinook 401(a)(2) is wholly discretionary, and listening sessions, EPA will provide salmon as prey for endangered Southern whether the agency should provide background information on the prior Resident killer whales (SRKW). further guidance on the Section rulemaking effort. Stakeholders will DATES: Comments on Amendment 21 401(a)(2) process that occurs after EPA have the opportunity to provide input to must be received by August 2, 2021. makes a ‘‘may affect’’ determination. EPA on the topics provided above and ADDRESSES: You may submit comments 9. Data and other information. EPA is any other relevant information on the on this document, identified by NOAA– interested in receiving any data or 401 Certification Rule for the agency’s NMFS–2021–0006, by the following information from stakeholders about the consideration. Information on the method: application of the 401 Certification listening session dates, times, and • Electronic Submissions: Submit all Rule, including but not limited to, registration instructions will be made electronic public comments via the impacts of the rule on processing available on EPA’s website, located at Federal e-Rulemaking Portal. Go to certification requests, impacts of the https://www.epa.gov/cwa-401. Persons www.regulations.gov and enter NOAA– rule on certification decisions, and or organizations wishing to provide NMFS–2021–0006 in the Search box. whether any major projects are verbal input during a listening session Click the ‘‘Comment’’ icon, complete anticipated in the next few years that will be selected on a first-come, first- the required fields, and enter or attach could benefit from or be encumbered by served basis, with consideration given your comments. the 401 Certification Rule’s proceedural to hearing from different stakeholder Instructions: Comments must be requirements. Additionally, EPA is groups. Due to the expected number of submitted by the above method to interested in stakeholder feedback about participants, individuals will be asked ensure that the comments are received, existing state CWA Section 401 to limit their oral presentation to three documented, and considered by NMFS. procedures, including whether the minutes. Further instructions on signing Comments sent by any other method, to agency should consider the extent to up and participating in listening any other address or individual, or which any revised rule might conflict sessions will be made available on received after the end of the comment with existing state CWA Section 401 EPA’s website above at a later date. period, may not be considered. All procedures and place a burden on those Supporting materials and written comments received are a part of the states to revise rules in the future. feedback from those who do not have an public record and will generally be
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posted for public viewing on for public review and comment. NMFS would be implemented through the www.regulations.gov without change. will consider the public comments annual management measures for ocean All personal identifying information received during the comment period salmon fisheries. The management (e.g., name, address, etc.) submitted described above in determining whether measures include a limit on the annual voluntarily by the sender will be to approve, partially approve, or quota in non-tribal commercial fisheries publicly accessible. Do not submit disapprove Amendment 21 to the FMP. north of Cape Falcon, Oregon, shifting confidential business information, or Amendment 21 was developed by the quota for Chinook salmon catch north of otherwise sensitive or protected Council to address impacts of the Cape Falcon, Oregon, from the spring information. NMFS will accept fisheries managed under the FMP on time period when the available anonymous comments (enter ‘‘N/A’’ in Chinook salmon as prey for the SRKW information indicates the whales the required fields if you wish to remain distinct population segment of Orcinus experience greater overlap with salmon anonymous). orca, which is listed as endangered fisheries to the summer time period, and The draft FMP, as amended through under the Endangered Species Act time and area closures in times and Amendment 21, with notations showing (ESA). The development of Amendment areas for which current data indicate how Amendment 21 would change the 21 was informed by the risk assessment greater foraging use by the killer whales FMP, if approved, is available on the prepared by the Council’s ad hoc SRKW (see proposed FMP language for detail). 1 NMFS website at https:// Workgroup. The risk assessment The goal for the Amendment 21 www.fisheries.noaa.gov/action/ identified Chinook salmon as the management responses is to limit ocean amendment-21-pacific-coast-salmon- primary prey of SRKW. Chinook salmon fishery impacts on foraging fishery-management-plan. salmon, as well as coho salmon, are opportunities for SRKW on Chinook The Council and NMFS prepared a targeted in ocean salmon fisheries salmon in years of low Chinook salmon draft Environmental Assessment. An managed under the FMP. The abundance. Management measures electronic copy of this document may be Workgroup also identified a range of implemented under Amendment 21 obtained from the West Coast Regional potential management measure the would be applied in concert with Office website at https:// Council could take to limit ocean measures designed to meet other www.fisheries.noaa.gov/west-coast/ salmon fishery impacts to Chinook requirements of the FMP including laws-and-policies/west-coast-region- salmon prey availability for SRKW. The conservation objectives and annual national-environmental-policy-act- Council considered the Workgroup catch limits for specific salmon stocks documents. recommendations in the development of and stock complexes. Amendment 21. FOR FURTHER INFORMATION CONTACT: If approved, Amendment 21 would Because Amendment 21 will be Jeromy Jording at 360–763–2268. establish a threshold for annual Chinook implemented through the annual SUPPLEMENTARY INFORMATION: salmon abundance below which management measures for the ocean Background additional management measures would salmon fishery, NMFS is not be implemented to limit the effects of promulgating an implementing rule at The ocean salmon fisheries in the the fisheries on SRKW. This low this time. exclusive economic zone (EEZ) (3–200 abundance threshold is defined as nautical miles) (5.6–370.4 kilometers) All comments received by the end of October 1 projections of Chinook off Washington, Oregon, and California the comment period on Amendment 21 salmon abundance in the area from the (see DATES and ADDRESSES above) will are managed under the Pacific Coast U.S./Canada border to Cape Falcon, OR, Salmon Fishery Management Plan be considered in the Secretary’s prior to salmon fisheries occurring in decision to approve, disapprove, or (FMP). The Magnuson-Stevens Fishery the EEZ (referred to as time step 1 Conservation and Management Act partially approve this amendment. To (TS1)). If an annual forecast for this be considered in this decision, (MSA) requires that each regional abundance is less than the arithmetic fishery management council submit any comments must be received by close of mean of the seven lowest years of TS1 business on the last day of the comment FMP or plan amendment it prepares to starting abundance during the period NMFS for review and approval, period; that does not mean postmarked 1992–2016 (1994–1996, 1998–2000 and or otherwise transmitted by that date. disapproval, or partial approval by the 2007), currently calculated as 966,000 Secretary of Commerce (Secretary). The Chinook salmon, management responses Authority: 16 U.S.C. 1801 et seq. MSA also requires that NMFS, upon Dated: May 26, 2021. receiving an FMP or amendment, 1 The SRKW Workgroup’s risk assessment report Jennifer M. Wallace, immediately publish a notice that the can be found on the Council’s website: https:// FMP or amendment is available for www.pcouncil.org/documents/2020/05/e-2-srkw- Acting Director, Office of Sustainable public review and comment. This workgroup-report-1-pacific-fishery-management- Fisheries, National Marine Fisheries Service. council-salmon-fishery-management-plan-impacts- [FR Doc. 2021–11540 Filed 6–1–21; 8:45 am] document announces that proposed to-southern-resident-killer-whales-risk-assessment- Amendment 21 to the FMP is available electronic-only.pdf/. BILLING CODE 3510–22–P
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Notices Federal Register Vol. 86, No. 104
Wednesday, June 2, 2021
This section of the FEDERAL REGISTER Policy, and Training, Docket No. 0503– data on a voluntary basis. These contains documents other than rules or 0022, Comments received in response to strategies will be reviewed and proposed rules that are applicable to the this docket will be made available for approved by OASCR, who will also public. Notices of hearings and investigations, public inspection and posted without provide oversight and monitoring of the committee meetings, agency decisions and change, including any personal collection of this data through its rulings, delegations of authority, filing of petitions and applications and agency information, to http:// compliance activities. statements of organization and functions are www.regulations.gov. If the REG data is not collected on examples of documents appearing in this Docket: For access to background applicants and participants in USDA section. documents or comments received, go to federally conducted programs, USDA the Office of the Assistant Secretary for will not be able to collect and report Civil Rights, Center for Civil Rights demographic data on its applicants and DEPARTMENT OF AGRICULTURE Operations, Docket Room at 1400 program participants. In addition, Independence Avenue SW, Washington, USDA would not be able to determine Notice of an Extension or Revision of DC 20250–3700, Mailstop 9401, if programs and services are reaching a Currently Approved Information between 8:00 a.m. and 4:30 p.m., and meeting the needs of the public, Collection Monday through Friday. beneficiaries, partners, and other AGENCY: Office of the Assistant FOR FURTHER INFORMATION CONTACT: stakeholders based on demographic Secretary for Civil Rights, USDA. Contact Denise A. Banks, Executive data. Failure to collect this information will ACTION: Notice and request for Director, Center for Civil Rights comments. Operations, Office of the Assistant also have a negative impact on USDA’s Secretary for Civil Rights, U.S. outreach and compliance activities. This SUMMARY: In accordance with the Department of Agriculture, 1400 could result in an inability to equitably Paperwork Reduction Act of 1995, this Independence Avenue SW, Washington, deliver programs and services to notice announces the intention of the DC 20250, (202) 401–7654 or applicants and producers, and Office of the Assistant Secretary for [email protected]. ultimately an inability to hold the Civil Rights (OASCR) to request a SUPPLEMENTARY INFORMATION: agencies accountable. renewal of a currently approved Title: 7 CFR part 15 Subpart D—Data Estimate of Burden: Public reporting information collection. OASCR will use Collection Requirement. burden for this collection of information the information collected to collect the OMB Number: 0503–0022. is estimated to average two minutes per race, ethnicity, and gender (REG) of all Expiration Date of Approval: July 31, response. program applicants and participants by 2021. Respondents: Producers, applicants, county and State. Type of Request: Extension and and USDA customers. DATES: Comments on this notice must be revision of a currently approved Estimated Number of Respondents: received by August 2, 2021 to be information collection. 1,200. assured of consideration. Abstract: Currently, Section 14006 of Estimated Number of Responses per ADDRESSES: Office of the Assistant the 2008 Farm Bill requires the Respondent: 1. Secretary for Civil Rights/Office of Secretary of Agriculture to annually Estimated Total Annual Burden on Compliance, Policy, and Training compile for each county and State in the Respondents: 40 hours. invites interested persons to submit United States program application and Comments are invited on: (1) Whether comments on this notice. Comments participation rate data regarding socially the proposed collection of information may be submitted by one of the disadvantaged farmers or ranchers for is necessary for the proper performance following methods: each program of USDA that serves of the functions of the agency, including b Federal eRulemaking Portal: This agricultural producers or landowners. whether the information will have website provides the ability to type This requirement only applies to FSA, practical utility; (2) the accuracy of the short comments directly into the NRCS, RD, and RMA. These four agency’s estimate of the burden of the comment field on this web page or agencies use the voluntary data proposed collection of information attach a file for lengthier comments. Go collection form approved by OMB that including the validity of the to http://www.regulations.gov. Follow is attached as a cover page to the methodology and assumptions used; (3) the on-line instructions at that site for application forms for programs that ways to enhance the quality, utility, and submitting comments. provide services to agriculture clarity of the information to be b Mail, including CD–ROMs, etc.: producers, farmers and ranchers. In collected; and (4) ways to minimize the Send to Docket Clerk, 1400 addition, all remaining USDA agencies burden of the collection of information Independence Avenue SW, Washington, with conducted programs (Animal and on those who are to respond, including DC 20250–3700, Mailstop 9401. Plant Health Inspection Service, and the use of appropriate automated, b Hand- or courier-delivered Foreign Agricultural Service) were electronic, mechanical, or other submittals: Deliver to 1400 required to develop a strategy for technological collection techniques or Independence Avenue SW, Washington, collecting voluntary REG data from other forms of information technology. DC 20250–3700, Mailstop 9401. individuals for their respective federally Comments may be sent to Denise A. Instructions: All items submitted by conducted programs by utilizing the Banks, Executive Director, Center for mail or electronic mail must include the same OMB approved form. Applicants Civil Rights Operations, Office of the Office of the Assistant Secretary for and program participants of these Assistant Secretary for Civil Rights. All Civil Rights/Office of Compliance, programs and activities provide this comments received will be available for
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public inspection during regular Monday through Friday, except and surveillance, and recordkeeping. In business hours at the same address. holidays. To be sure someone is there to addition, the activities of packaging, All responses to this notice will be help you, please call (202) 799–7039 marking, identification, and certification summarized and included in the request before coming. of sweet potatoes from Hawaii are also for Office of Management and Budget FOR FURTHER INFORMATION CONTACT: For included. approval. All comments will become a information on the movement of plants We are asking the Office of matter of public record. and plant products from Hawaii and the Management and Budget (OMB) to Winona Lake Scott, Territories, contact Mr. Marc Phillips, approve our use of these information collection activities, as described, for an Associate Assistant Secretary for Civil Rights, Senior Regulatory Policy Specialist, Office of the Assistant Secretary for Civil PPQ, APHIS, USDA, 4700 River Road additional 3 years. Rights. Unit 133, Riverdale, MD 20737; (301) The purpose of this notice is to solicit [FR Doc. 2021–11597 Filed 6–1–21; 8:45 am] 851–2114. For information on the comments from the public (as well as affected agencies) concerning our BILLING CODE 3410–18–P information collection, contact Mr. Joseph Moxey, APHIS’ Paperwork information collection. These comments Reduction Act Coordinator, at (301) will help us: DEPARTMENT OF AGRICULTURE 851–2483. (1) Evaluate whether the collection of SUPPLEMENTARY INFORMATION: information is necessary for the proper Animal and Plant Health Inspection Title: Movement of Plants and Plant performance of the functions of the Service Products From Hawaii and the Agency, including whether the [Docket No. APHIS–2021–0026] Territories. information will have practical utility; OMB Control Number: 0579–0346. (2) Evaluate the accuracy of our Notice of Request for Revision to and Type of Request: Revision to and estimate of the burden of the collection Extension of Approval of an extension of approval of an information of information, including the validity of Information Collection; Movement of collection. the methodology and assumptions used; Plants and Plant Products From Hawaii Abstract: The Plant Protection Act (3) Enhance the quality, utility, and and the Territories (PPA, 7 U.S.C. 7701 et seq.) authorizes clarity of the information to be the Secretary of Agriculture to restrict collected; and AGENCY: Animal and Plant Health the importation, entry, or interstate (4) Minimize the burden of the Inspection Service, USDA. movement of plants, plant products, and collection of information on those who ACTION: Revision to and extension of other articles to prevent the are to respond, through use, as approval of an information collection; introduction of plant pests into the appropriate, of automated, electronic, comment request. United States or their dissemination mechanical, and other collection within the United States. This authority technologies; e.g., permitting electronic SUMMARY: In accordance with the has been delegated to the Animal and submission of responses. Paperwork Reduction Act of 1995, this Plant Health Inspection Service Estimate of burden: The public notice announces the Animal and Plant (APHIS), which administers regulations Health Inspection Service’s intention to burden for this collection of information to implement the PPA. is estimated to average 0.21 hours per request a revision to and extension of In 7 CFR part 318, under the approval of an information collection response. regulations in ‘‘Subpart A—Regulated Respondents: Wholesalers and associated with the regulations for the Articles from Hawaii and the interstate movement of fruits and producers of fruits and vegetables; Territories’’ (§§ 318.13–1 through growers, shippers, and exporters in vegetables from Hawaii and the 318.13–17), APHIS prohibits or restricts Territories. Hawaii, U.S. Territories, and State plant the interstate movement of fruits and regulatory officials; and irradiation DATES: We will consider all comments vegetables into the continental United facility personnel. that we receive on or before August 2, States from Hawaii, Puerto Rico, the Estimated annual number of 2021. U.S. Virgin Islands, Guam, and the respondents: 283. ADDRESSES: You may submit comments Commonwealth of the Northern Mariana Estimated annual number of by either of the following methods: Islands to prevent plant pests and responses per respondent: 55. • Federal eRulemaking Portal: Go to noxious weeds from being introduced Estimated annual number of www.regulations.gov. Enter APHIS– into and spread within the continental responses: 15,673. 2021–0026 in the Search field. Select United States. Estimated total annual burden on the Documents tab, then select the The regulations contain requirements respondents: 3,286 hours. (Due to Comment button in the list of for a performance-based process for averaging, the total annual burden hours documents. approving the interstate movement of • may not equal the product of the annual Postal Mail/Commercial Delivery: commodities that, based on the findings number of responses multiplied by the Send your comment to Docket No. of a pest risk analysis, can be safely reporting burden per response.) APHIS–2021–0026, Regulatory Analysis imported subject to one or more All responses to this notice will be and Development, PPD, APHIS, Station designated phytosanitary measures and summarized and included in the request 3A–03.8, 4700 River Road Unit 118, for acknowledging pest-free areas. These for OMB approval. All comments will Riverdale, MD 20737–1238. requirements involve information also become a matter of public record. Supporting documents and any collection activities, including limited comments we receive on this docket permits, inspections to issue limited Done in Washington, DC, this 27th day of may be viewed at regulations.gov or in permits, inspections of production May 2021. our reading room, which is located in areas, transit permits, compliance Mark Davidson, room 1620 of the USDA South Building, agreements, inspection and certification, Acting Administrator, Animal and Plant 14th Street and Independence Avenue labeling for fruits and vegetables Health Inspection Service. SW, Washington, DC. Normal reading produced in pest free areas, written [FR Doc. 2021–11555 Filed 6–1–21; 8:45 am] room hours are 8 a.m. to 4:30 p.m., requests for facility approvals, trapping BILLING CODE 3410–34–P
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DEPARTMENT OF AGRICULTURE United States. Those regulations and that the only place where plant taxa establish two lists of taxa whose are designated as NAPPRA is in the Animal and Plant Health Inspection importation is NAPPRA: A list of taxa USDA Plants for Planting Manual. The Service of plants for planting that are quarantine commenter suggested that APHIS make [Docket No. APHIS–2018–0066] pests, and a list of taxa of plants for a comprehensive list of all NAPPRA planting that are hosts of quarantine plants, with pests of concern for each, Notice of Decision To Add Taxa of pests. Paragraph (b) of § 319.37–4 so that the reasons why a previously Plants for Planting That Are describes the process for adding plant approved plant can no longer come in Quarantine Pests or Hosts of taxa to the NAPPRA category. are made clear to the public. Quarantine Pests to the Lists of Plants In accordance with that process, on All NAPPRA plants are listed in for Planting Whose Importation Is Not November 25, 2019, we published in the chapter 6 of the USDA Plants for Authorized Pending Pest Risk Analysis Federal Register (84 FR 64825–64826, Planting Manual. The APHIS website Docket No. APHIS–2018–0066) a also lists the NAPPRA weeds and hosts AGENCY: Animal and Plant Health notice 1 that announced our of quarantine pests of Round 1, Round Inspection Service, USDA. determination that 26 taxa of plants for 2, and Round 3.4 A 2018 final rule 5 ACTION: Notice. planting are quarantine pests, and that moved about 120 plant genera, all Myrtaceae taxa (when destined to including Abies, Cassia, Crocosmia, SUMMARY: We are advising the public of Hawaii) and 43 other taxa of plants for Poaceae, and all herbaceous Fabaceae our decision to add 26 taxa of plants for planting are hosts of 18 2 quarantine from the Prohibited List in § 319.37–2(a) planting that are quarantine pests pests. The notice also made available to the NAPPRA category. We intend to (weeds), all Myrtaceae taxa (when datasheets that detail the scientific update our APHIS website to have a destined to Hawaii), and 43 other taxa evidence we evaluated in making the complete list of taxa restricted through of plants for planting that are hosts of determination that the taxa are NAPPRA notices. 17 quarantine pests, to our lists of plants quarantine pests or hosts of a quarantine Another commenter noted that hosts for planting whose importation is now pest and are being added to the cited in a 2013 Asian longhorned beetle not authorized pending pest risk NAPPRA category. (ALB)/citrus longhorned beetle (CLB) analysis. A previous notice made We solicited comments concerning Federal Order 6 were included in a datasheets available for public comment the notice and the datasheets for 60 days revised Federal Order but not added to that listed the evidence we used to ending January 24, 2020, and extended the NAPPRA tables on the APHIS determine that the taxa are quarantine the deadline for comments until website. pests or hosts of quarantine pests. This February 25, 2020. We received 132 The commenter is correct. The 2013 notice responds to the comments we comments from producers, importers, ALB/CLB Federal Order added received and announces final versions industry groups, conservationists, Cunninghamia, Pterocarya, and Tectona of the datasheets. scientists, plant pathologists, ecologists, as hosts of Anoplophora chinensis. We DATES: The changes to the lists will be administrators, teachers, students, and will update the Round 1 table on the made on July 2, 2021. private citizens. This notice responds to APHIS website accordingly. FOR FURTHER INFORMATION CONTACT: Dr. the comments we received and One commenter suggested that APHIS Indira Singh, Botanist, Plants for announces the final versions of the go to ports where non-native invasive Planting Policy, IRM, PPQ, APHIS, 4700 datasheets. species are likely to enter the United River Road Unit 133, Riverdale, MD Most commenters supported our States and locate and remove all such 20737–1236; [email protected]; addition of Myrtaceae 3 propagative pests 500 acres inland from the site. The (301) 851–2020. material to Hawaii to the NAPPRA list commenter stated that this ‘‘Early Detection and Rapid Response (EDRR)’’ SUPPLEMENTARY INFORMATION: because of the risk posed to important tree species, particularly ohi’a has been successful in the past. Background (Metrosideros polymorpha), which is The purpose of EDRR is to detect, Under the regulations in ‘‘Subpart part of the native ecosystem and identify, assess, and make a rapid H—Plants for Planting’’ (7 CFR 319.37– provides habitat for threatened and response to verified new domestic 1 through 319.37–23, referred to below endangered animal species. Most infestations that are determined to be as the regulations), the Animal and commenters expressed no concerns with invasive. The purpose of listing plants Plant Health Inspection Service (APHIS) the other taxa we proposed to add to the on NAPPRA is to prevent entry of of the U.S. Department of Agriculture NAPPRA list. Commenter concerns are unwanted plants and pests at United (USDA) prohibits or restricts the addressed below by topic. States ports of entry. Domestic issues involving new invasive species are importation of plants for planting to NAPPRA Lists prevent the introduction of quarantine therefore beyond the scope of this pests into the United States. Quarantine One commenter stated that NAPPRA notice. pest is defined in § 319.37–1 as a plant Crocosmia, Pterocarya, Tectona, Cassia, NAPPRA Exemptions Abies, and many other species that pest or noxious weed that is of potential In some cases, APHIS exempts economic importance to the United APHIS designates as NAPPRA do not appear on the APHIS NAPPRA website imports of plants that are hosts of States and not yet present in the United quarantine pests from NAPPRA States, or present but not widely 1 To view the notice, datasheets, and comments distributed and being officially we received, go to www.regulations.gov and enter 4 The NAPPRA lists can be viewed at https:// controlled. APHIS–2018–0066 in the Search field. www.aphis.usda.gov/aphis/ourfocus/planthealth/ The regulations in § 319.37–4(a) 2 The number of pests in the initial notice was 18, import-information/permits/plants-and-plant- provide for the listing of plants for but is 17 in this notice, as the Bambusoideae taxa products-permits/plants-for-planting/ct_nappra. planting whose importation is not was subsequently removed from the quarantine pest 5 83 FR 11845–11867, Docket No. APHIS–2008– list for reasons explained in this notice. 0011. authorized pending pest risk analysis 3 Myrtaceae is a host of Austropuccinia psidii, 6 DA–2013–18, ‘‘Importation of Host Material of (NAPPRA) in order to prevent the which is a quarantine pest only for the State of Anoplophora chinensis and A. glabripennis,’’ May introduction of quarantine pests into the Hawaii. 9, 2013.
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requirements when there is significant between the exporting country and the Hawaii to prepare for the proposed trade of that plant between the United States. changes. Another commenter exporting country and the United States. If data can be provided for significant representing a flower bouquet business We allow such importation based on trade between the United States and the asked us to reconsider listing inspection findings indicating that the exporting country, we will re-evaluate Eucalyptus, a member of the Myrtaceae imported plants are generally pest free the NAPPRA status of the taxon for that family, under NAPPRA for plants and from which the risk of introducing country. destined for Hawaii. quarantine pests is low. The underlying principle of the Imports of Myrtaceae Cut Flowers and NAPPRA lists is to safeguard U.S. One commenter stated that Canada Greenery Into Hawaii should be exempt from NAPPRA agriculture with the least possible effect requirements for imports of Cestrum Many commenters stated that on trade. While the addition of taxa to spp. and Gynura spp. on the basis of restrictions on Myrtaceae cut flowers the NAPPRA lists may make it more existing significant trade between and greenery are also needed for difficult for Hawaiian business to obtain Canada and the United States. The effective protection of Hawaii, and that Myrtaceae plants from other countries, commenter cited import data indicating port-of-entry inspections have not been the economic impact is outweighed by the number of plants exported to the successful in saving Hawaii from the the potentially devastating effects of United States under the US/Canada introduction of pests and pathogens. introducing quarantine pests into Some commenters noted that cut Greenhouse Grown Plant Certification Hawaii on agriculture, forests, and foliage can transmit plant diseases and Program. endangered species. We also note that that its importation into Hawaii the commenters’ primary concern was Based on the information cited by the constitutes a gap with respect to commenter, we have determined that not with NAPPRA, but with parallel phytosanitary protection. One such restrictions imposed by the State of Canada meets the threshold for commenter noted that cut greens are significant trade with the United States Hawaii on the interstate movement of suspected to have been the original Myrtaceae plants into Hawaii from other and is exempt from NAPPRA pathway for Austropuccinia psidii to requirements for Cestrum spp. and State and territories. enter Hawaii, adding that the disease Another commenter urged APHIS to Gynura spp. has been intercepted by State inspectors consider broader bans of living plant Similarly, a commenter stated that on greenery shipped from Florida. material to and from Hawaii. With the Guatemala should be exempt from APHIS understands that cut flowers ongoing introduction of new plants, NAPPRA requirements for Zea spp. and greenery are a potential pathway for insects, and pathogens into Hawaii, the seeds based on significant trade with the the entry of several pests and pathogens. commenter stated that the current United States. Another commenter While imported plants that pose a threat framework and methodology for provided import data for Pennisetum to Hawaii will be added to the NAPPRA inspecting imported and exported plant glaucum (Cenchrus americanus) millet lists, cut flowers and greenery are not materials is untenable. seeds from Chile and requested a regulated under ‘‘Subpart H—Plants for We are making no changes based on significant trade exemption from Planting,’’ but rather a different subpart, the comments, as we consider the NAPPRA requirements for this ‘‘Subpart P—Cut Flowers,’’ and are thus current framework for inspections commodity. outside the scope of this notice. adequate to manage phytosanitary risk. Based upon significant trade history Separate regulatory action is required to Taxa added to the NAPPRA list are only documented by the United States address that pathway. prohibited entry to the United States if importers and provided by the national A commenter noted that we did not they are determined to be quarantine plant protection organization of propose to add Ceratocystis lukuohia pests or until a pest risk analysis is Guatemala since the publication of the and Ceratocystis huliohia to NAPPRA. conducted that has identified notice 7 in the Federal Register on June The commenter added that these pests appropriate mitigation measures to 19, 2017, we agree with the commenter are killing ohi’a trees in Hawaii and prevent the introduction of quarantine and have determined that Zea spp. from asked that APHIS publish a new pests for which they are hosts. Guatemala meets the threshold to be proposal to add these species to the list. considered exempt from NAPPRA When a plant taxon is placed on Bambusoideae listing. As is the case with Zea spp., NAPPRA, its importation becomes We are removing the Poaceae additional documentation from United restricted. While our determination to subfamily Bambusoideae taxa from the States importers (and confirmed by list Myrtaceae in NAPPRA was based on NAPPRA quarantine pest list as the APHIS data) has demonstrated it being a host of myrtle rust subfamily is already regulated under significant trade history of Pennisetum (Austropuccinia psidii), we will base NAPPRA for Ustilago sharaiana and glaucum seeds from Chile. Therefore, as future decisions on pest risk other quarantine pests. stated in the notice we published on assessments that address all quarantine General Comments November 25, 2019,8 we are exempting pests and pathogens associated with Pennisetum glaucum from Chile and Myrtaceae, including Ceratocystis spp. One commenter noted that some of Zea spp. from Guatemala from NAPPRA the plant taxa included in the proposal Potential Economic Effects restrictions. that APHIS names as being vulnerable One commenter asked APHIS to allow Two commenters in the State of to various pests or pathogens are for the opportunity to have the NAPPRA Hawaii expressed concern that the invasive in the United States, namely lists reviewed if the industry addition of the Myrtaceae family to the Syzygium jambos, Bambusoideae, and subsequently finds and can document NAPPRA list would have a negative Euonymus, and asked if this is an that a history of significant trade exists impact on their floral businesses. appropriate priority. One commenter, a wholesale flower The commenter’s concern about importer, stated that local farms are Syzygium jambos and Euonymus being 7 82 FR 27786–27792, Docket No. APHIS–2012– 0076. unable to provide the volume that the invasive has been addressed through 8 84 FR 64825–64826, Docket No. APHIS–2018– industry requires, and that insufficient restricting their importation into the 0066. time exists for the floral industry in United States by listing them as
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NAPPRA. Bambusoideae has been DEPARTMENT OF AGRICULTURE Southwestern Regional Office deleted from this notice as it is already Regional Forester regulated under NAPPRA. Forest Service A commenter stated that the NAPPRA —Notices of Availability for Comment Newspapers Used for Publication of and Decisions and Objections listing of Elm mottle virus (EMoV) does Legal Notices in the Southwestern affecting National Forest System not clarify whether the purpose is to Region: Arizona, New Mexico, and Lands in the State of New Mexico for protect North American elm species or Parts of Oklahoma and Texas any projects of Region-wide impact, other hosts, such as hydrangea and lilac. AGENCY: Forest Service, USDA. or for any projects affecting more than The listing of EMoV is for all hosts, one National Forest or National ACTION: Notice. including lilac (Syringa), which is listed Grassland in New Mexico:— in this notice, and Hydrangea, which is SUMMARY: This notice lists the ‘‘Albuquerque Journal’’, Albuquerque, already on the NAPPRA list. newspapers that will be used by all New Mexico. —Regional Forester Notices of Comment Period Ranger Districts, Grasslands, Forests, and the Regional Office of the Availability for Comment and A commenter needed more time to Southwestern Region to publish legal Decisions and Objections affecting develop a response and requested that notices. The intended effect of this National Forest System lands in the we extend the comment period. action is to inform interested members State of Arizona for any projects of of the public which newspapers the Region-wide impact, or for any We extended the comment period for Forest Service will use to publish projects affecting more than one an additional 30 days. notices of proposed actions, notices of National Forest in Arizona: —‘‘The Therefore, in accordance with the decision, and notices of opportunity to Arizona Republic’’, Phoenix, Arizona. regulations in § 319.37–4, we are adding file an objection. This will provide the —Regional Forester Notices of 26 taxa of plants for planting that are public with constructive notice of Forest Availability for Comment and quarantine pests (weeds), and all Service proposals and decisions, Decisions and Objections affecting Myrtaceae taxa (when destined to provide information on the procedures National Grasslands in New Mexico, Hawaii) and 43 other taxa of plants for to comment or object, and establish the Oklahoma, and Texas are listed by planting that are hosts of 17 quarantine date that the Forest Service will use to Grassland and location as follows: pests whose importation is now determine if comments or objections Kiowa National Grassland —‘‘Union NAPPRA. We are exempting Zea spp. were timely. County Leader’’, Clayton New from Guatemala, Pennisetum glaucum DATES: Publication of legal notices in Mexico (syn. Cenchrus americanus) from Chile, the listed newspapers will begin on the Rita Blanca National Grassland in and Gynura spp. and Cestrum spp. from date of this publication and continue Cimarron County, Oklahoma— Canada from the NAPPRA listing. We until further notice. ‘‘Boise City News’’, Boise City, are also adding Jasminum spp. plants ADDRESSES: Roxanne Turley, Regional Oklahoma for planting from South Africa to Administrative Review Coordinator, Rita Blanca National Grassland in NAPPRA, and Catharanthus spp. plants Forest Service, Southwestern Region; Dallam County, Texas—‘‘The for planting from Canada to NAPPRA. 333 Broadway SE, Albuquerque, NM Dalhart Texan’’, Dalhart, Texas Black Kettle National Grassland in A complete list of taxa added to the 87102–3498. Roger Mills County, Oklahoma— NAPPRA list and the restrictions placed FOR FURTHER INFORMATION CONTACT: Roxanne Turley, Regional ‘‘Cheyenne Star’’, Cheyenne, on their importation can be found on Oklahoma the APHIS website at https:// Administrative Review Coordinator; Black Kettle National Grassland in www.aphis.usda.gov/aphis/ourfocus/ (505) 842–3178 or roxanne.turley@ usda.gov. Hemphill County, Texas—‘‘The planthealth/import-information/ Canadian Record’’, Canadian, Texas SUPPLEMENTARY INFORMATION: The permits/plants-and-plant-products- McClellan Creek National Grassland _ administrative procedures at 36 CFR permits/plants-for-planting/ct nappra. in Gray County, Texas—‘‘The parts 218 and 219 require the Forest Pampa News’’, Pampa, Texas Congressional Review Act Service to publish notices in a —Regional Forester Notices of newspaper of general circulation. The Pursuant to the Congressional Review Availability for Comment and content of the notices is specified in 36 Act (5 U.S.C. 801 et seq.), the Office of Decisions and Objections affecting CFR parts 218 and 219. In general, the Information and Regulatory Affairs only one National Forest or National notices will identify: The decision or designated this rule as not a major rule, Grassland unit will appear in the project by title or subject matter; the newspaper of record elected by each as defined by 5 U.S.C. 804(2). name and title of the official making the National Forest or National Grassland, Authority: 7 U.S.C. 1633 and 7701–7772 decision; how to obtain additional as listed below. and 7781–7786; 21 U.S.C. 136 and 136a; 7 information; and where and how to file CFR 2.22, 2.80, and 371.3. comments or objections. The date the Arizona National Forests notice is published will be used to Done in Washington, DC, this 27th day of Apache-Sitgreaves National Forests May 2021. establish the official date for the beginning of the comment or objection Notices for Availability for Mark Davidson, period. Where more than one Comments, Decisions and Objections by Acting Administrator, Animal and Plant newspaper is listed for any unit, the first Forest Supervisor, Alpine Ranger Health Inspection Service. newspaper listed is the primary District, Black Mesa Ranger District, [FR Doc. 2021–11559 Filed 6–1–21; 8:45 am] newspaper of record and which Lakeside Ranger District, and BILLING CODE 3410–34–P publication date shall be used for Springerville Ranger District are calculating the time period to file published in: —‘‘The White Mountain comment or an objection. Independent’’, Apache County, Arizona.
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Clifton Ranger District Notices are published in:—‘‘Arizona Capitol Mt. Taylor Ranger District notices are published in:—‘‘Copper Era’’, Clifton, Times’’, in Phoenix, Arizona. published in:—‘‘Cibola County Arizona. Globe Ranger District Notices are Beacon’’, Grants, New Mexico. published in:—‘‘Arizona Silver Belt’’, Magdalena Ranger District notices are Coconino National Forest Globe, Arizona. published in:—‘‘El Defensor-Chieftain’’, Notices for Availability for Payson Ranger District, Pleasant Socorro, New Mexico. Comments, Decisions and Objections by Valley Ranger District and Tonto Basin Mountainair Ranger District notices Forest Supervisor, Mogollon Rim Ranger Ranger District Notices are published are published in:—‘‘The Independent’’, District, and Flagstaff Ranger District are in:—‘‘Payson Roundup’’, Payson, Edgewood, New Mexico. published in: —‘‘Arizona Daily Sun’’, Arizona. Sandia Ranger District notices are Flagstaff, Arizona. published in:—‘‘Albuquerque Journal’’, Red Rock Ranger District Notices are New Mexico National Forests Albuquerque, New Mexico. published in: —‘‘Red Rock News’’, Carson National Forest Sedona, Arizona. Gila National Forest Notices for Availability for Coronado National Forest Notices for Availability for Comments, Decisions and Objections by Comments, Decisions and Objections by Notices for Availability for Forest Supervisor, Camino Real Ranger Forest Supervisor, Quemado Ranger Comments, Decisions and Objections by District, Tres Piedras Ranger District, District, Reserve Ranger District, the Forest Supervisor and Santa and Questa Ranger District are Glenwood Ranger District, Silver City Catalina Ranger District are published published in:—‘‘The Taos News’’, Taos, Ranger District and Wilderness Ranger in:—‘‘The Arizona Daily Star’’, Tucson, New Mexico. District are published in:—‘‘Silver City Arizona. Canjilon Ranger District and El Rito Daily Press’’, Silver City, New Mexico. Douglas Ranger District Notices for Ranger District Notices are published Black Range Ranger District notices projects occurring within the Chiricahua in:—‘‘Rio Grande Sun’’, Espanola, New are published in:—‘‘Sierra County and Dragoon Mountain Ranges (the Mexico. Sentinel’’, Truth or Consequences, New Chiricahua and Dragoon Ecosystem Jicarilla Ranger District Notices are Mexico. Management Areas) are published in:— published in:—‘‘Farmington Daily ‘‘Herald/Review’’, Sierra Vista, Arizona; Times’’, Farmington, New Mexico. Lincoln National Forest notices for projects occurring within the Cibola National Forest and National Notices for Availability for Peloncillo Mountain Range (the Grasslands Comments, Decisions and Objections by Peloncillo Ecosystem Management Forest Supervisor and the Sacramento Area) are published in:—‘‘Hidalgo Notices for Availability for Ranger District are published in:— County Herald’’, Lordsburg, New Comments, Decisions and Objections by ‘‘Alamogordo Daily News’’, Mexico. Forest Supervisor affecting lands in Alamogordo, New Mexico. Nogales Ranger District Notices are New Mexico, except the National Guadalupe Ranger District Notices are published in: —‘‘Nogales Grasslands are published in:— published in:—‘‘Carlsbad Current International’’, Nogales, Arizona. ‘‘Albuquerque Journal’’, Albuquerque, Argus’’, Carlsbad, New Mexico. Sierra Vista Ranger District Notices New Mexico. Smokey Bear Ranger District Notices are published in:—‘‘Herald/Review’’, Forest Supervisor Notices affecting are published in:—‘‘Ruidoso News’’, Sierra Vista, Arizona. National Grasslands in New Mexico, Ruidoso, New Mexico. Safford Ranger District Notices are Oklahoma and Texas are published by published in:—‘‘Eastern Arizona grassland and location as follows: Santa Fe National Forest Courier’’, Safford, Arizona. —Kiowa National Grassland in Colfax, Notices for Availability for Kaibab National Forest Harding, Mora and Union Counties, Comments, Decisions and Objections by New Mexico published in:—‘‘Union Forest Supervisor, Coyote Ranger Notices for Availability for County Leader’’, Clayton, New Mexico District, Cuba Ranger District, Espanola Comments, Decisions and Objections by —Rita Blanca National Grassland in Ranger District, Jemez Ranger District Forest Supervisor, North Kaibab Ranger Cimarron County, Oklahoma and Pecos-Las Vegas Ranger District are District, Tusayan Ranger District, and published in:—‘‘Boise City News’’, published in:—‘‘Albuquerque Journal’’, Williams Ranger District Notices are Boise City, Oklahoma Albuquerque, New Mexico. published in: —‘‘Arizona Daily Sun’’, —Rita Blanca National Grassland in Flagstaff, Arizona. Dated: May 26, 2021. Dallam County, Texas published in: Barnie Gyant, Prescott National Forest —‘‘The Dalhart Texan’’, Dalhart, Associate Deputy Chief, NFS. Notices for Availability for Texas [FR Doc. 2021–11558 Filed 6–1–21; 8:45 am] Comments, Decisions and Objections by —Black Kettle National Grassland, in BILLING CODE 3411–15–P Forest Supervisor, Bradshaw Ranger Roger Mills County, Oklahoma District, and Chino Valley Ranger published in:—‘‘Cheyenne Star’’, District are published in:—‘‘Daily Cheyenne, Oklahoma DEPARTMENT OF AGRICULTURE Courier’’, Prescott, Arizona. —Black Kettle National Grassland, in Verde Ranger District Notices are Hemphill County, Texas, published National Agricultural Statistics Service published in: ‘‘Verde Independent’’, in:—‘‘The Canadian Record’’, Notice of Intent To Request To Cottonwood, Arizona. Canadian, Texas —McClellan Creek National Grassland Conduct a New Information Collection Tonto National Forest published in:—‘‘The Pampa News’’, AGENCY: National Agricultural Statistics Notices for Availability for Pampa, Texas. Service, USDA. Comments, Decisions, and Objections —Kiowa National Grassland published ACTION: Notice and request for by Forest Supervisor, Cave Creek Ranger in: —‘‘Union County Leader’’, comments. District, and Mesa Ranger District are Clayton, New Mexico.
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SUMMARY: In accordance with the providing both short- and long-term up with phone and limited personal Paperwork Reduction Act of 1995, this income sources. enumeration of non-respondents to notice announces the intention of the A riparian forest buffer is an area increase response rates and to minimize National Agricultural Statistics Service adjacent to a stream, lake, or wetland data collection costs. (NASS) to seek approval to conduct a that contains a combination of trees, Respondents: Farmers and Ranchers new information collection to gather shrubs, and/or other perennial plants who reported using agroforestry data related to the use of agroforestry and is managed differently from the practices on the 2017 Census of practices. surrounding landscape, primarily to Agriculture. provide conservation benefits. Estimated Number of Respondents: DATES: Comments on this notice must be Forest farming is the cultivation of 11,800. received by August 2, 2021 to be high-value crops under the protection of Estimated Total Annual Burden on assured of consideration. a managed tree canopy. In some parts of Respondents: 9,500 hours. ADDRESSES: You may submit comments, the world, this is called multi-story Comments: Comments are invited on: identified by docket number 0535– cropping and when used on a small (a) Whether the proposed collection of NEW, by any of the following methods: scale in the tropics it is sometimes information is necessary for the proper • Email: [email protected]. called home gardening. performance of the functions of the Include docket number above in the Alley cropping is defined as the agency, including whether the subject line of the message. planting of rows of trees and/or shrubs information will have practical utility; • E-fax: (855) 838–6382. to create alleys within which (b) the accuracy of the agency’s estimate • Mail: Mail any paper, disk, or CD– agricultural or horticultural crops are of the burden of the proposed collection ROM submissions to: David Hancock, produced. The trees may include of information, including the validity of NASS Clearance Officer, U.S. valuable hardwood veneer or lumber the methodology and assumptions used; Department of Agriculture, Room 5336 species; fruit, nut or other specialty crop (c) ways to enhance the quality, utility, South Building, 1400 Independence trees/shrubs; or desirable softwood and clarity of the information to be Avenue SW, Washington, DC 20250– species for wood fiber production. collected; and (d) ways to minimize the 2024. NASS would plan and conduct the burden of the collection of information • Hand Delivery/Courier: Hand survey and deliver access to a dataset or on those who are to respond, through deliver to: David Hancock, NASS responses to approved staff from USDA- the use of appropriate automated, Clearance Officer, U.S. Department of Forestry Service, who will publish the electronic, mechanical, technological, or Agriculture, Room 5336 South Building, results of the survey. This project is other forms of information technology 1400 Independence Avenue SW, conducted as a cooperative effort with collection methods. Washington, DC 20250–2024. the U.S. Department of Agriculture’s All responses to this notice will Forestry Service—National Agroforestry FOR FURTHER INFORMATION CONTACT: become a matter of public record and be Center. Funding for this survey is being Kevin L. Barnes, Associate summarized in the request for OMB provided by the U.S. Department of Administrator, National Agricultural approval. Agriculture’s Forestry Service—National Statistics Service, U.S. Department of Agroforestry Center. Signed at Washington, DC, May 20, 2021. Agriculture, (202) 720–2707. Copies of Authority: These data will be Kevin L. Barnes, this information collection and related collected under authority of 7 U.S.C. Associate Administrator. instructions can be obtained without 2204(a). Individually identifiable data [FR Doc. 2021–11537 Filed 6–1–21; 8:45 am] charge from David Hancock, NASS— collected under this authority are BILLING CODE 3410–20–P OMB Clearance Officer, at (202) 690– governed by Section 1770 of the Food 2388 or at [email protected]. Security Act of 1985 as amended, 7 SUPPLEMENTARY INFORMATION: U.S.C. 2276, which requires USDA to DEPARTMENT OF AGRICULTURE Title: National Agroforestry Survey. afford strict confidentiality to non- OMB Control Number: 0535–NEW. aggregated data provided by Office of Partnerships and Public Type of Request: Intent to seek respondents. This Notice is submitted in Engagement approval to create a new information accordance with the Paperwork collection for a period of three years. Advisory Committee on Minority Reduction Act of 1995 (Pub. L. 104–113, Farmers; Meeting Abstract: The survey will collect data 44 U.S.C. 3501, et seq.) and Office of whether the operator uses any of five Management and Budget regulations at AGENCY: Office of Partnerships and agroforestry practices typically used for 5 CFR part 1320. Public Engagement, USDA. conservation: Windbreaks, Silvopasture, NASS also complies with OMB ACTION: Notice of conference call Riparian Forest Buffers, Alley Cropping, Implementation Guidance, meeting. as well as Forest Farming & Multi-story ‘‘Implementation Guidance for Title V Cropping. of the E-Government Act, Confidential SUMMARY: Notice is hereby given, Windbreaks are linear plantings of Information Protection and Statistical pursuant to the provisions of the rules trees and shrubs designed to provide Efficiency Act of 2002 (CIPSEA),’’ and regulations of the Department of economic, environmental and Federal Register, Vol. 72, No. 115, June Agriculture and the Federal Advisory community benefits. The primary 15, 2007, p. 33362. Committee Act (FACA), that a public purpose of most windbreaks is to slow Estimate of Burden: Public reporting teleconference of the Advisory the wind which creates a more burden for this collection of information Committee on Minority Farmers beneficial condition for soils, crops, is estimated to average 50 minutes per (ACMF) will be held to discuss USDA livestock, wildlife and people. response. NASS plans to mail out outreach, technical assistance, and Silvopasture is the deliberate publicity materials with the capacity building for and with minority integration of trees and grazing livestock questionnaires to inform respondents of farmers; the implementation of the operations on the same land. These the importance of this survey. NASS Socially Disadvantaged and Veteran systems are intensively managed for will also use a single mailing and Farmer and Rancher Grant Program both forest products and forage, internet data collection tools, followed (2501 Program); and methods of
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maximizing the participation of information concerning this public FOR FURTHER INFORMATION CONTACT: minority farmers and ranchers in the meeting may contact Eston Williams, David Zanoni, Senior Underwriter, U.S. Department of Agriculture; and to Designated Federal Officer (DFO), at [email protected], 816–926–6142. plan mechanisms for best providing [email protected] or at (202) SUPPLEMENTARY INFORMATION: advice to the Secretary on the issues 596–0226. outlined above. Background SUPPLEMENTARY INFORMATION: This notice of funding availability DATES: The public portion of the Background: The Committee was specifies the terms and conditions of conference call will be held on established in the U.S. Department of PCCP. PCCP provides premium support Wednesday, June 9, 2021 at 3:00–3:45 Agriculture pursuant to section 14008 of to eligible producers who planted and p.m. Central Standard Time (CST). the Food Conservation and Energy Act reported to Farm Service Agency (FSA) of 2008, Public Law 110–246, 122 Stat. Public Call-In Information a qualifying cover crop on acreage 1651, 2008 (7 U.S.C. 2279). The conference begins at 1:00 p.m. insured under a spring crop insurance Central Time on June 9, 2021; you may The Committee works in the interest policy during the 2021 crop year. Funds join the conference 10 minutes prior. of the public to ensure socially from Division N of the Consolidated Step 1: Dial into the conference. disadvantaged farmers have equal Appropriations Act, 2021, (Pub. L. 116– Dial-in: 888–251–2949 or 215–861– access to USDA programs. The 260) will be used for this notice of 0694. Committee advises the Secretary on the funding availability. implementation of section 2501 of the Access Code: 5416488#. Definitions Need an international dial-in number? Food, Agriculture, Conservation, and Step 2: Join the conference on your Trade Act of 1990; methods of Approved Insurance Provider (AIP) computer. maximizing the participation of means a legal entity that has entered Entry Link: https://ems8.intellor.com/ minority farmers and ranchers in U.S. into a reinsurance agreement with FCIC login/838969. Department of Agriculture programs; for the applicable reinsurance year and When you access the entry link above, and civil rights activities within the is authorized to sell and service policies you will be provided a choice—to Department, as such activities relate to or plans of insurance under the Federal install the WebEx plug-in for your participants in such programs. Crop Insurance Act. preferred browser or to join the web Dated: May 25, 2021. Crop insurance policy means an insurance policy reinsured by FCIC conference using a temporary path. Cikena Reid, Either option is acceptable. under the provisions of the Federal Crop USDA Committee Management Officer. Insurance Act, as amended. It does not Need technical assistance? [FR Doc. 2021–11595 Filed 6–1–21; 8:45 am] Audio Connection: 1–888–796–6118. include private plans of insurance. BILLING CODE 3412–88–P WebEx Connection: 1–888–793–6118. Crop year means the period within Public Comments: Written comments which the insured crop is normally grown and is designated by the calendar for the Committee’s consideration may DEPARTMENT OF AGRICULTURE be submitted to email: [email protected]. year in which the insured crop is Written comments must be received by Risk Management Agency normally harvested. Eligible insured acres means insured June 8th, 2021. acres on which the producer planted a Availability of Materials for the Notice of Funding Availability; qualifying cover crop during the 2021 Meeting: General information about the Pandemic Cover Crop Program crop year, as reported on the CLU(s) to ACMF as well as any updates FSA via a completed and signed Form concerning the meeting announced in AGENCY: Federal Crop Insurance 578-Report of Acreage on or before June this notice, may be found on the ACMF Corporation, and Risk Management 15, 2021, which may be prior to FSA’s website at https://www.usda.gov/ Agency, USDA. acreage reporting date, and reported the partnerships/advisory-committee-on- ACTION: Notification of funding same CLU(s) on their crop insurance minority-farmers. availability. acreage report by the applicable Federal Accessibility: USDA is committed to crop insurance acreage reporting date ensuring that all persons are included in SUMMARY: The Risk Management for a 2021 crop year spring crop our programs and events. If you are a Agency (RMA), on behalf of the Federal insurance policy. person with a disability and require Crop Insurance Corporation (FCIC), is Eligible producer means a producer reasonable accommodations to announcing the availability of funding meeting all of the eligibility participate in this meeting Please under the Pandemic Cover Crop requirements for PCCP. contact Eston Williams at Program (PCCP) to help agricultural FCIC means the Federal Crop [email protected] or (202) 596– producers impacted by the effects of the Insurance Corporation, a wholly owned 0226. COVID–19 outbreak. Given cover crop Government Corporation of USDA that Individuals who use cultivation requires sustained, long-term administers the Federal crop insurance telecommunication devices for the deaf investments to improve soil health and program. (TDD) may call the Federal Information gain other agronomic benefits, the FSA means the Farm Service Agency, Relay Service (FIRS) at 1–800–877–8339 economic challenges due to the USDA. between 8:00 a.m. and 8:00 p.m., pandemic made maintaining cover FSA Common Land Unit (CLU) means Eastern Standard Time, Monday cropping systems financially the smallest unit of land that has a through Friday. challenging for many producers. For the permanent, contiguous boundary, FOR FURTHER INFORMATION CONTACT: 2021 crop year, PCCP premium support common land cover and land General information about the is available to eligible producers for management, common owner, and committee can also be found at https:// eligible insured acres on a spring crop common producer association. www.usda.gov/partnerships/advisory- insurance policy on which the producer Insured crop means a crop for which committee-on-minority-farmers. Any planted a qualifying cover crop during the participant has purchased a crop member of the public wishing to obtain the 2021 crop year. insurance policy from an AIP.
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Insured acres means the participant’s endorsements to underlying polices are Paperwork Reduction Act share of insurable acreage that is not eligible for PCCP. Requirements insured in accordance with a crop Calculating and Accounting PCCP In accordance with the provisions of insurance policy purchased from an Amounts the Paperwork Reduction Act of 1995 AIP. (44 U.S.C. chapter 35, subchapter I), the PCCP means Pandemic Cover Crop For the 2021 crop year, for eligible rule does not change the information Program. insured acres covered under a spring collection approved by OMB under Person means a person as defined in crop insurance policy, the amount control numbers 0563–0053. 7 CFR 457.8(1). under PCCP for each insured acre will Environmental Review Qualifying cover crop means any of be $5, calculated on a CLU basis, with the four types of cover crops: (1) Cereals a maximum equal to the amount of In general, the environmental impacts and other grasses; (2) legumes; (3) premium owed by the insured. Amounts of programs are to be considered in a brassicas; and (4) other non-legume under PCCP are limited to the full manner consistent with the provisions broadleaves, and mixtures of two or amount of premium owed by the of the National Environmental Policy more cover crop species planted at the insured for the eligible insured acres on Act (NEPA, 42 U.S.C. 4321–4347) and same time. For the purposes of PCCP, an a CLU basis. If the full amount under the regulations of the Council on insured crop is not considered a PCCP would result in a negative Environmental Quality (40 CFR parts qualifying cover crop. premium balance for the insured on a 1500–1508). FCIC conducts programs RMA means the Risk Management CLU basis, PCCP amounts will be and activities that have been determined Agency, USDA. limited to the full amount of premium to have no individual or cumulative Spring crop means insured crops effect on the human environment. As reported for the 2021 crop year with a owed on a CLU basis. If the eligible insured acres are amended for any specified in 7 CFR 1b.4, FCIC is Federal crop insurance acreage categorically excluded from the reporting date of April 15, 2021, to reason, such as an overreporting of insured acres, the amount under PCCP preparation of an Environmental August 15, 2021, in accordance with the Analysis or Environmental Impact crop insurance policy. will be based on the eligible insured acres after any such amendment. Statement unless the FCIC Manager USDA means United States (agency head) determines that an action Department of Agriculture. Where state premium subsidy may have a significant environmental programs are also applicable, if the full Eligibility for PCCP effect. The FCIC Manager has amount of the premium support under determined this notice will not have a For the 2021 crop year, to be eligible the state premium subsidy program and significant environmental effect. for premium support under PCCP, the PCCP would result in a negative Therefore, FCIC will not prepare an participant must be a person who is premium balance for the insured on a environmental assessment or eligible to receive Federal benefits and CLU basis, state premium subsidy environmental impact statement for this who has purchased a crop insurance would be applied first toward premium action and this notice serves as policy for a spring crop from an AIP for owed. PCCP would be applied second, documentation of the programmatic insured acres on which the participant up to the full amount of producer environmental compliance decision. planted and reported a qualifying cover premium owed on a CLU basis. crop during the 2021 crop year. Cover Federal Assistance Programs The amount under PCCP will not be crops must be specifically reported to paid directly to participants. FCIC and The title and number of the Federal FSA via the Form-578 with the AIPs will account for the amount when assistance programs, as found in the corresponding crop code. Potential calculating total producer premium due. Catalog of Federal Domestic Assistance, participants that are uncertain of AIPs will adjust participant bills to which this document applies is whether their cover crop was reported accordingly. All bills still follow the 10.450—Crop Insurance. to the FSA are encouraged to contact same terms and conditions specified in their local FSA county office USDA Non-Discrimination Policy the crop insurance policy, regardless of (farmers.gov/service-locator). Only In accordance with Federal civil PCCP amounts. The payment limitations acreage reports that are filed or rights law and USDA civil rights in 7 CFR 760.1507 are not applicable to amended prior to June 15 will be regulations and policies, USDA, its PCCP. considered for the program. Agencies, offices, and employees, and Participants who are in violation of PCCP premium support will be institutions participating in or Highly Erodible Land or Wetlands provided via premium billing administering USDA programs are Conservation (16 U.S.C. 3811–12, and adjustments by the applicable RMA prohibited from discriminating based on 3821) are not eligible for premium premium billing date for the insured race, color, national origin, religion, sex, support under PCCP. crop. RMA will obtain cover crop gender identity (including gender A person is not eligible to receive records from FSA and determine expression), sexual orientation, benefits under PCCP if at any time that eligibility such that eligible producers disability, age, marital status, family or person is determined to be ineligible for do not need to take any additional parental status, income derived from a crop insurance. specific action through their crop public assistance program, political Whole Farm Revenue Protection, insurance agent to enroll in the PCCP. beliefs, or reprisal or retaliation for prior Supplemental Coverage Option, In the event that any PCCP amount is civil rights activity, in any program or Enhanced Coverage Option, and determined to be incorrect, the amount activity conducted or funded by USDA Hurricane Insurance Protection—Wind will be recalculated until the 2021 (not all bases apply to all programs). Index policies or endorsements are not reinsurance year annual settlement date Remedies and complaint filing eligible for PCCP. Stacked Income of October 7, 2022, unless otherwise deadlines vary by program or incident. Protection Plan (STAX) and Margin specified by the Administrator. After Persons with disabilities who require Protection (MP) policies are only that date, the amount will be final alternative means of communication for eligible for PCCP when insured as a except in cases of misrepresentation, program information (for example, standalone policy. STAX and MP fraud, scheme, or device. braille, large print, audiotape, American
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Sign Language, etc.) should contact the DATES: The closing deadline for receipt very low- or low-income persons for a responsible Agency or USDA TARGET of all paper pre-applications in response period of not less than five years. The Center at (202) 720–2600 (voice and to this Notice is 5:00 p.m., local time for minimum five-year restriction to rent TTY) or contact USDA through the each Rural Development State Office on the very low- and low-income tenants Federal Relay Service at (800) 877–8339. July 7, 2021. If submitting the pre- will only apply to the units that are Additionally, program information may application in electronic format, the repaired with the HPG funding. Any be made available in languages other closing deadline for receipt is 5:00 p.m. units within the property that were not than English. Eastern Daylight Time on July 19, 2021. repaired with HPG funding will not be To file a program discrimination Rural Development State Office subject to the five-year restriction. complaint, complete the USDA Program locations can be found at: http:// Discrimination Complaint Form, AD– www.rd.usda.gov/contact-us/state- B. Federal Award Information 3027, found online at https:// offices. RHS will not consider any pre- The funding instrument for the HPG www.usda.gov/oascr/how-to-file-a- application that is received after the program will be a grant agreement. The program-discrimination-complaint and closing deadline. Applicants intending term of the grant can vary from one to at any USDA office or write a letter to mail pre-applications must provide two years, depending on available funds addressed to USDA and provide in the sufficient time to permit delivery on or and demand. No maximum or minimum letter all the information requested in before the closing deadline date and grant levels have been established at the the form. To request a copy of the time. Acceptance by the United States National level. In accordance with 7 complaint form, call (866) 632–9992. Postal Service or private mailer does not CFR 1944.652, coordination and constitute delivery. Facsimile (FAX) and Submit your completed form or letter to leveraging of funding for repair and postage due pre-applications will not be USDA by mail to: U.S. Department of rehabilitation activities with housing accepted. Agriculture, Office of the Assistant and community development Secretary for Civil Rights, 1400 FOR FURTHER INFORMATION CONTACT: For organizations or activities operating in Independence Avenue SW, Washington, general information, applicants may the same geographic area are expected, DC 20250–9410 or email: OAC@ contact Bonnie Edwards-Jackson, but not required. Applicants should usda.gov. Finance and Loan Analyst, Multi- contact the Rural Development State USDA is an equal opportunity Family Housing Production and Office to determine the allocation for provider, employer, and lender. Preservation Division, telephone (202) their state. Richard Flournoy, 690–0759 (voice) (this is not a toll-free number) or (800) 877–8339 (TDD- The amount of funding available for Acting Administrator, Risk Management the HPG program may be found at the Agency. Federal Information Relay Service) or via email at [email protected]. following link: http://www.rd.usda.gov/ [FR Doc. 2021–11603 Filed 6–1–21; 8:45 am] programs-services/housing- SUPPLEMENTARY INFORMATION: BILLING CODE 3410–08–P preservation-grants. In addition, the Overview Consolidated Appropriations Act, 2021 (Pub. L. 116–260) established a set-aside DEPARTMENT OF AGRICULTURE Federal Agency Name: Rural Housing Service, USDA. for grants located in Rural Economic Area Partnership Zones (REAP Zones). Rural Housing Service Funding Opportunity Title: Housing Preservation Grants. The State Office will indicate on the list submitted to the National Office if the [Docket No. RHS–21–MFH–0008] Announcement Type: Notice. Catalog of Federal Domestic pre-application is eligible for the REAP Assistance Number: 10.433. Zones set-aside. The National Office Notice of Solicitation of Applications will then compile a national list, rank for the Section 533 Housing A. Program Description the REAP Zones applicants based on the Preservation Grants for Fiscal Year point allocations set forth in this 2021 The HPG program is a grant program, authorized under 42 U.S.C. 1490m and Federal Register Notice, and distribute AGENCY: Rural Housing Service, USDA. implemented at 7 CFR part 1944, the HPG REAP Zones set-aside starting with the highest scoring eligible HPG ACTION: Notice. subpart N, which provides qualified public agencies, private non-profit REAP Zones applicants. Other funds SUMMARY: The Rural Housing Service organizations including, but not limited will be distributed under a formula (RHS), a Rural Development agency to, Faith-Based and neighborhood allocation to States pursuant to 7 CFR (Agency) of the United States partnerships, and other eligible entities; part 1940, subpart L, ‘‘Methodology and Department of Agriculture (USDA), grant funds to assist low- and very low- Formulas for Allocation of Loan and announces that it is soliciting income homeowners in repairing and Grant Program Funds.’’ Decisions on competitive applications under its rehabilitating their homes in rural areas. funding will be based on pre- Housing Preservation Grant (HPG) In addition, the HPG program assists application scores. Anyone interested in program. This action is taken to comply cooperative housing complexes and submitting a pre-application for funding with Agency regulations which requires rental property owners in rural areas in under this program is encouraged to the Agency to announce the opening repairing and rehabilitating their units if consult the Rural Development website, and closing dates for receipt of pre- they agree to make such units available http://www.rd.usda.gov/programs- applications for HPG funds from eligible to very low- and low-income persons. services/housing-preservation-grants, applicants. The Agency will publish the Rental property owners can include periodically for updated information amount of funding on its website at: Section 515 rental properties if the regarding the status of funding https://www.rd.usda.gov/programs- eligibility requirements for the HPG authorized for this program. services/housing-preservation-grants. program are met. In accordance with 7 The commitment of program dollars Expenses incurred in developing pre- CFR 1944.663, rental property owners will be made to selected applicants that applications will be at the applicant’s must agree to make the units repaired or have fulfilled the necessary risk. rehabilitated available for occupancy to requirements for obligation.
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C. Eligibility Information pre-applications to evidence timely program, a rental property assistance 1. Eligible Applicants. Eligible entities receipt and; upon request, will provide program, or a cooperative assistance for these competitively awarded grants the applicant with a written program. include State and local Governments; acknowledgment of receipt (due to (2) The process for selecting non-profit corporations, which may Covid–19, if submitting a paper pre- recipients for HPG assistance, include, but not be limited to Faith- application, applicants must contact the determining housing preservation needs Based and community organizations; applicable State Office to confirm of the dwelling, performing the federally recognized Indian Tribes; and mailing instructions). You may access necessary work, and monitoring/ the electronic grant pre-application for consortia of eligible entities. HPG inspecting work performed. Housing Preservation Grants at: http:// applicants who were previously (3) A description of the process for www.grants.gov. coordinating with other public and selected for HPG funds are eligible to 2. Content and Form of Pre- submit new pre-applications to apply private organizations and programs that application: 7 CFR part 1944, subpart N provide assistance in rehabilitation of for FY 2021 HPG program funds. More provides details on what information eligibility requirements can be found at historic properties in accordance with 7 must be contained in the pre- CFR 1944.673. 7 CFR 1944.658, 1944.661, 1944.662 and application package. Entities wishing to 1944.686. (4) The development standard(s) the apply for assistance should contact the applicant will use for the housing 2. Cost Sharing or Matching. Pursuant Rural Development State Office to to 7 CFR 1944.652, grantees are preservation work; and, if not the Rural receive further information, the State Development standards for existing expected to coordinate and leverage allocation of funds, and copies of the funding for repair and rehabilitation dwellings, the evidence of its pre-application package. Unless acceptance by the jurisdiction where the activities; as well as replacement otherwise noted, applicants wishing to housing, with housing and community grant will be implemented. apply for assistance must make its (5) The time schedule for completing development organizations or activities statement of activities available to the operating in the same geographic area. the program. public for comment. The applicant(s) (6) The staffing required to complete While HPG funds may be leveraged with must announce the availability of its other resources, cost sharing or the program. statement of activities for review in a (7) The estimated number of very low- matching is not a requirement for the newspaper of general circulation in the and low-income minority and non- HPG applicant as the HPG applicant project area and allow at least 15 days minority persons the grantee will assist would not be denied an award of HPG for public comment. The start of this 15- with HPG funds; and, if a rental funds if all other project selection day period must occur no later than 16 property or cooperative assistance criteria have been met. days prior to the last day for acceptance program, the number of units and the 3. Other. Awards made under this of pre-applications by the United States term of restrictive covenants on their Notice are subject to the provisions Department of Agriculture (USDA)– use for very low- and low-income. contained in the Consolidated Rural Development. Federally Appropriations Act, 2021 (Pub. L. 116– recognized Indian Tribes, pursuant to 7 (8) The geographical area(s) to be 260) sections 744 and 745, Division E CFR 1944.674, are exempt from the served by the HPG program. ‘‘Financial Services and General requirement to consult with local (9) The annual estimated budget for Government Appropriations Act, 2021, leaders including announcing the the program period based on the Title VII ‘‘General Provisions— availability of its statement of activities financial needs to accomplish the Government-wide,’’ regarding Corporate for review in a newspaper. objectives outlined in the proposal. The Felony Convictions and Corporate All applicants will file an original budget should include proposed direct Federal Tax Delinquencies. To comply copy of Standard Form (SF)–424, and indirect administrative costs; such with these provisions, only applicants ‘‘Application for Federal Assistance,’’ as personnel, fringe benefits, travel, that are or propose to be, corporations and supporting information with the equipment, supplies, contracts, and will submit this form as part of their appropriate Rural Development State other cost categories, detailing those pre-application. Form AD–3030, Office. This form may be found on the costs for which the grantee proposes to ‘‘Representations Regarding Felony USDA eForms website (https:// use the HPG grant separately from non- Conviction and Tax Delinquent Status forms.sc.egov.usda.gov/eForms/ HPG resources, if any. The applicant for Corporate Applicants,’’ can be found welcomeAction.do?Home). A pre- budget should also include a schedule here: http://www.ocio.usda.gov/ application package; including SF–424, (with amounts) of how the applicant document/ad3030. is available in any Rural Development proposes to draw HPG grant funds, i.e., State Office. All pre-applications shall monthly, quarterly, lump sum for D. Pre-Application and Submission be accompanied by the following program activities, etc. Information information which Rural Development (10) A copy of an indirect cost 1. Address to Request Pre-application will use to determine the applicant’s proposal when the applicant has Package: Applicants wishing to submit eligibility to undertake the HPG another source of Federal funding in a paper pre-application in response to program and to evaluate the pre- addition to the Rural Development HPG this Notice must contact the Rural application under the project selection program. Development State Office serving the criteria of 7 CFR 1944.679. (11) A brief description of the State of the proposed HPG housing (a) A statement of activities proposed accounting system to be used. project in order to receive further by the applicant for its HPG program as (12) The method of evaluation to be information and copies of the paper pre- appropriate to the type of assistance the used by the applicant to determine the application package. You may find the applicant is proposing, including: effectiveness of its program which addresses and contact information for (1) A complete discussion of the type encompasses the requirements for each State Office following this link: of and conditions for financial quarterly reports to Rural Development http://www.rd.usda.gov/contact-us/ assistance for housing preservation, in accordance with 7 CFR 1944.683(b) state-offices. Rural Development will including whether the request for and the monitoring plan for rental date, and time stamp incoming paper assistance is for a homeowner assistance properties and cooperatives (when
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applicable) according to 7 CFR the actual number of both low-income officials. Applications from Federally 1944.689; and low-income minority households recognized Indian tribes are not subject (13) The source and estimated amount and substandard housing), the need for to this requirement. of other financial resources to be the type of housing preservation 5. Funding Restrictions: There are no obtained and used by the applicant for assistance being proposed, the limits on proposed direct and indirect both HPG activities and housing anticipated use of HPG resources for costs. Expenses incurred in developing development and/or supporting historic properties, the method of pre-applications will be at the activities. evaluation to be used by the applicant applicant’s risk. (14) The use of program income; if in determining the effectiveness of its 6. Other Submission Requirements: any, and the tracking system used for efforts. USDA is participating as a partner in the monitoring same. (f) A statement containing the Government-wide Grants.gov website. (15) The applicant’s plan for component for alleviating any Housing Preservation Grants [Catalog of disposition of any security instruments overcrowding as defined by 7 CFR Federal Domestic Assistance #10.433] is held by them as a result of its HPG 1944.656. one of the programs included at this activities in the event of its loss of legal (g) A signed copy of the website. If you are an applicant under status. documentation in accordance with 7 the HPG program, you may submit your (16) Any other information necessary CFR 1944.673 (as a companion to (a)(3) pre-application to the Agency in either to explain the proposed HPG program; above). electronic or paper format. Please be and (h) The applicant must submit written mindful that the pre-application (17) The outreach efforts outlined in statements and related correspondence deadline for electronic format differs 7 CFR 1944.671(b). reflecting compliance with 7 CFR from the deadline for paper format. The (b) Complete information about the 1944.674(a) and (c) regarding electronic format deadline will be based applicant’s experience and capacity to consultation with local Government on Eastern Daylight Time. The paper carry out the objectives of the proposed leaders in the preparation of its program format deadline is local time for each HPG program. and the consultation with local and Rural Development State Office. (c) Evidence of the applicant’s legal State Government pursuant to the Users of Grants.gov will be able to existence, including, in the case of a provisions of Executive Order 12372. download a copy of the pre-application private non-profit organization; which (i) The applicant is to make its package, complete it offline, and then may include, but not be limited to, statement of activities available to the upload and submit the pre-application Faith-Based and community public for comment prior to submission via the Grants.gov site. You may not organizations; a copy of, or an accurate to Rural Development pursuant to 7 CFR email an electronic copy of a grant pre- reference to, the specific provisions of 1944.674(b). The pre-application must application to USDA Rural State law under which the applicant is contain a description of how the Development; however, the Agency organized; a certified copy of the comments (if any were received) were encourages your participation in applicant’s Articles of Incorporation and addressed. Grants.gov. Bylaws or other evidence of corporate (j) The applicant must submit an The following are useful tips and existence; certificate of incorporation for original and one copy of Form RD 400– instructions on how to use the website: applicants other than public bodies; 1, ‘‘Equal Opportunity Agreement’’ and • When you enter the Grants.gov evidence of good standing from the Form RD 400–4, ‘‘Assurance website, you will find information about State when the corporation has been in Agreement’’ in accordance with 7 CFR submitting an application electronically existence one year or more; and the 1944.676. through the website as well as the hours names and addresses of the applicant’s Applicants should review 7 CFR part of operation. USDA-Rural Development members, directors and officers. If other 1944, subpart N for a comprehensive list strongly recommends that you do not organizations are members of the of all application requirements. wait until the pre-application deadline applicant-organization, or the applicant 3. System for Awards Management: date to begin the application process is a consortium, pre-applications should All program applicants must be through Grants.gov. To use Grants.gov, be accompanied by the names, registered in the System for Awards applicants must have a DUNS number. addresses, and principal purpose of the Management (SAM) prior to submitting The DUNS number can be obtained at other organizations. If the applicant is a a pre-application, unless determined no cost via a toll-free request line at consortium, documentation showing exempt under 2 CFR 25.110. You may (866) 705–5711. compliance with paragraph (4)(ii) under register in SAM at no cost at https:// • You may submit all documents the definition of ‘‘organization’’ in 7 sam.gov/SAM/. Recipients must electronically through the website, CFR 1944.656 must also be included. maintain an active SAM registration including all information typically (d) For a private non-profit entity; with current information at all times included on the pre-application for which may include, but not be limited during which it has an active Federal HPG, and all necessary assurances and to, Faith-Based and community award or an application under certifications. organizations, the most recent audited consideration by the Agency. The • After you electronically submit statement and a current financial applicant must ensure that the your pre-application through the statement dated and signed by an information in the database is current, website, you will receive an automatic authorized officer of the entity showing accurate and complete. Applicants must acknowledgement from Grants.gov that the amounts and specific nature of ensure they complete the Financial contains a Grants.gov tracking number. assets and liabilities together with Assistance General Certifications and • RHS may request that you provide information on the repayment schedule Representations in SAM. original signatures on forms at a later and status of any debt(s) owed by the 4. Intergovernmental Review: In date. applicant. accordance with 7 CFR 1944.674, the • If you experience technical (e) A brief narrative statement which HPG program is subject to the difficulties on the closing date and are includes information about the area to provisions of Executive Order 12372, unable to meet the 5:00 p.m. (Eastern be served and the need for improved which requires intergovernmental Daylight Time) deadline, print out your housing (including both percentage and consultation with State and local pre-application and submit it to your
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State Office; you must meet the closing (a) Points are awarded based on the (f) The proposed program contains a date and local time deadline. percentage of very low-income persons component for alleviating overcrowding • Please note that you must locate the that the applicant proposes to assist, as defined in 7 CFR 1944.656: 5 points. downloadable pre-application package using the following scale: In the event more than one pre- for this program by the CFDA Number (1) More than 80%: 20 points application receives the same amount of or FedGrants Funding Opportunity (2) 61% to 80%: 15 points points, those pre-applications will then Number, which can be found at http:// (3) 41% to 60%: 10 points be ranked based on the actual www.grants.gov. (4) 20% to 40%: 5 points percentage figure used for determining Please Note: If you receive a grant (5) Less than 20%: 0 points the points in item (a) in the ‘‘Scoring’’ award under this Notice, USDA reserves (b) The applicant’s proposal may be section of this Notice (7 CFR 1944.679 the right to post all information that is expected to result in the following (b)(1)). not protected by the Privacy Act percentage of HPG fund use (excluding Example of 1st tie-break: submitted as part of the pre-application/ administrative costs) to total cost of unit Both Applicants score 80 points application package on a public website preservation. This percentage reflects Applicant X’s percentage in ‘‘Scoring’’ with free and open access to any maximum repair or rehabilitation with section item (a) is 65% member of the public. the least possible HPG funds due to Applicant B’s percentage in ‘‘Scoring’’ E. Pre-Application Review Information leveraging, innovative financial section item (a) is 75% assistance, owner’s contribution, or Applicant B is ranked higher than 1. Criteria. All paper pre-applications other specified approaches. Points are Applicant X for Section 533 HPG funds must be filed awarded based on the following Applicant B will be funded before with the appropriate Rural Development percentage of HPG funds (excluding Applicant X State Office and all paper or electronic administrative costs) to total funds: Further, in the event that pre- pre-applications must meet the applications are still tied, then those requirements of this Notice and 7 CFR (1) 50% or less: 20 points (2) 51% to 65%: 15 points pre-applications still tied will be ranked part 1944, subpart N. Pre-applications based on the percentage figures used for determined not eligible and/or not (3) 66% to 80%: 10 points (4) 81% to 95%: 5 points determining the points in item (b) in the meeting the selection criteria will be (5) 96% to 100%: 0 points ‘‘Scoring’’ section of this Notice (7 CFR notified by the Rural Development State (c) The applicant has demonstrated its 1944.679 (b)(2)). Office. Example of 2nd tie-break: 2. Review and Selection Process. The administrative capacity in assisting very Rural Development State Offices will low- and low-income persons to obtain Both Applicants score 80 points Both Applicants percentage in utilize the following threshold project adequate housing based on the ‘‘Scoring’’ section item (a) is 65% selection criteria for applicants in following: Applicant X’s percentage in ‘‘Scoring’’ accordance with 7 CFR 1944.679: (1) The organization or a member of (a) Providing a financially feasible its staff has at least one or more years section item (b) is 55% Applicant B’s percentage in ‘‘Scoring’’ program of housing preservation experience successfully managing and section item (b) is 60% assistance. ‘‘Financially feasible’’ is operating a rehabilitation or Applicant X is ranked with a lower defined as proposed assistance which weatherization type program: 10 points. percentage than Applicant B will be affordable to the intended (2) The organization or a member of its staff has at least one or more years Applicant X will be funded before recipient or result in affordable housing Applicant B for very low- and low-income persons. experience successfully managing and (b) Serving eligible rural areas with a operating a program assisting very low- Further, 7 CFR 1944.679 (c), for concentration of substandard housing and low-income persons obtain housing applications where HPG assistance to for households of very low- and low- assistance: 10 points. rental properties or co-ops is proposed, income. (3) If the organization has those still tied will be further ranked (c) Being an eligible applicant as administered grant programs, there are based on the number of years the units defined in 7 CFR 1944.658. no outstanding or unresolved audit or are available for occupancy under the (d) Meeting the requirements of investigative findings which might program (a minimum of five years is consultation and public comment in impair carrying out the proposal: 10 required). For this part, ranking will be accordance with 7 CFR 1944.674. points. based from most to least number of (e) Submitting a complete pre- (d) The proposed program will be years. application as outlined in 7 CFR undertaken entirely in rural areas Example of 3rd tie-break: 1944.676. outside Metropolitan Statistical Areas Both Applicants score 80 points 3. Scoring. For applicants meeting all (MSAs) identified by Rural Both Applicants percentage in of the requirements listed above, the Development as having populations ‘‘Scoring’’ section item (a) is 65% Rural Development State Offices will below 10,000 or in remote parts of other Both Applicants percentage in use weighted criteria in accordance with rural areas (i.e., rural areas contained in ‘‘Scoring’’ section item (b) is 55% 7 CFR part 1944, subpart N as selection MSAs with less than 5,000 population) Applicant X’s rental unit will be for the grant recipients. Each pre- as defined in 7 CFR 1944.656: 10 points. available for occupancy under the application and its accompanying (e) The program will use less than 20 program for 10 years statement of activities will be evaluated percent of HPG funds for administration Applicant B’s rental unit will be and, based solely on the information purposes: available for occupancy under the contained in the pre-application, the (1) More than 20%: Not eligible program for 5 years applicant’s proposal will be numerically (2) 20%: 0 points Applicant X is ranked higher than rated on each criterion within the range (3) 19%: 1 point Applicant B provided. The highest-ranking (4) 18%: 2 points Applicant X will be funded before applicant(s) will be selected based on (5) 17%: 3 points Applicant B allocation of funds available to the (6) 16%: 4 points If any of the applicants that remain State. (7) 15% or less: 5 points tied after the 1st and 2nd tie-breaks are
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offering to assist single family owners, (4) Provide a copy of your Financial Assistance General then the 3rd tie-break would not be organization’s Negotiated Indirect Cost Certifications and Representations applicable, and a lottery would be used Rate Agreement. section: to select the applicant to be funded. (5) Certify that all work completed for • Form RD 400–4, ‘‘Assurance If there is still a tie after the first two the award will benefit a rural area. Agreement.’’ [or three, when applicable] tie-breaks, (6) Certify that you will comply with • Form AD–1047, ‘‘Certification then a lottery system will be used to the Federal Funding Accountability and Regarding Debarment, Suspension, and select the applicant to be funded. The Transparency Act of 2006 and report Other Responsibility Matters-Primary lottery will be conducted at the National information about subawards and Covered Transactions.’’ Office. The lottery will consist of the executive compensation. • Form AD–1048, ‘‘Certification names of each pre-application with (7) Certify that the U.S. has not Regarding Debarment, Suspension, equal scores printed onto a same size obtained an outstanding judgement Ineligibility and Voluntary Exclusion. piece of paper, which will then be against your organization in a Federal Lower Tier Covered Transactions.’’ placed into a receptacle that fully Court (other than in the United States • Form AD–1049, ‘‘Certification obstructs the view of the names. The Tax Court). Regarding Drug-Free Workplace Director of the Production and (8) Execute Form SF–424B, Requirements (Grants).’’ Preservation Division, in the presence of ‘‘Assurance—Non-Construction • Form AD–3031, ‘‘Assurance two witnesses, will draw a piece of Programs.’’ Regarding Felony Conviction or Tax paper from the receptacle. The name on (9) Execute Form SF–LLL, ‘‘Disclosure Delinquent Status for Corporate the piece of paper drawn will be the Form to Report Lobbying,’’ if applicable Applicants.’’ applicant to be funded. or certify that your organization does 3. Reporting. Post-award reporting After the award selections are made, not lobby. requirements can be found in the Grant all applicants will be notified of the (b) The applicant must provide Agreement. The grantee will provide an status of their pre-applications by mail evidence of compliance with other audit report or financial statements in with form AD–622 Form, ‘‘Notice of Pre- federal statutes, including but not accordance with Uniform Audit Application Review Action.’’ Applicants limited to the following: Requirements for Federal Awards at 2 will be given their review rights or (1) Debarment and suspension CFR part 200, subpart F. information is required in accordance appeal rights in accordance with 7 CFR G. Paperwork Reduction Act 1944.682. with 2 CFR part 417 (Nonprocurement Debarment and Suspension) The reporting requirements contained F. Federal Award Administration supplemented by 2 CFR part 180, if it in this Notice have been approved by Information applies. The section heading is ‘‘What the Office of Management and Budget 1. Federal Award Notices. The Agency information must I provide before under OMB Number 0575–0115. entering into a covered transaction with will notify; in writing, applicants whose H. Non-Discrimination Statement pre-applications have been selected for a Federal agency?’’ located at 2 CFR funding. At the time of notification, the 180.335. It is part of OMB’s Guidance In accordance with Federal civil Agency will advise the applicant what for Grants and Agreements concerning rights law and USDA civil rights further information and documentation Government-wide Debarment and regulations and policies, the USDA, its is required along with a timeline for Suspension. Agencies, offices, and employees and submitting the additional information. If (2) All of your organization’s known institutions participating in or the Agency determines it is unable to workplaces by including the actual administering USDA programs are select the pre-application for funding, address of buildings (or parts of prohibited from discrimination based on the applicant will be informed in buildings) or other sites where work race, color, national origin, religion, sex, writing. Such notification will include under the award takes place. Workplace gender identity, (including gender the reasons the applicant was not identification is required under the expression), sexual orientation, selected. The Agency will advise drug-free workplace requirements in disability, age, marital status, family/ applicants, whose pre-applications did Subpart B of 2 CFR part 421, which parental status, income derived from a not meet eligibility and/or selection adopts the Governmentwide public assistance program, political criteria, of their review rights or appeal implementation (2 CFR part 182) of the beliefs, or reprisal or retaliation for prior rights in accordance with 7 CFR Drug-Free Workplace Act. civil rights activity, in any program or 1944.682. (3) 2 CFR parts 200 and 400 (Uniform activity conducted or funded by USDA 2. Administrative and National Policy Administrative Requirements, Cost (not all bases apply to all programs). Requirements. Rural Development is Principles and Audit Requirements for Remedies and complaint filing encouraging applications for projects Federal Awards). deadlines vary by program or incident. that will support rural areas with (4) 2 CFR part 182 (Governmentwide Persons with disabilities who require persistent poverty. This emphasis will Requirements for Drug-Free Workplace alternative means of communication for support Rural Development’s mission of (Financial Assistance)) and 2 CFR part program information (e.g., Braille, large improving the quality of life for Rural 421 (Requirements for Drug Free print, audiotape, American Sign Americans and commitment to directing Workplace (Financial Assistance)). Language, etc.) should contact the resources to those who most need them. (5) Executive Order 13166, responsible Agency or USDA’s TARGET (a) The following additional ‘‘Improving Access to Services for Center, at (202) 720–2600 (voice and requirements apply to grantees selected Persons with Limited English TTY) or contact USDA through the for this program: Proficiency.’’ For information on limited Federal Relay Service, at (800) 877– (1) Complete Form RD 1942–46 English proficiency and agency-specific 8339. Additionally, program ‘‘Letter of Intent to Meet Conditions.’’ guidance, go to http://www.lep.gov. information may be made available in (2) Complete Form RD 1940–1, The following forms for acceptance of languages other than English. ‘‘Request for Obligations of Funds.’’ a federal award are now collected To file a program discrimination (3) Complete FMMI Vendor Code through your registration or annual complaint, complete the USDA Program Request Form. recertification in SAM.gov in the Discrimination Complaint Form AD–
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3027 (PDF), found online at: https:// Marine Complex, 700 South Myrick DEPARTMENT OF COMMERCE www.usda.gov/oascr/how-to-file-a- Street, Pensacola; Site 4 (10 acres)—FDC program-discrimination-complaint, and Industrial Warehouse, 10 Spruce Street, International Trade Administration at any USDA office or write a letter Pensacola; and, Site 5 (140 acres)— addressed to USDA and provide in the Century Industrial Park, Escambia Advisory Committee on Supply Chain letter all of the information requested in County Road 4 and Industrial Competitiveness: Notice of Public the form. To request a copy of the Boulevard, Century. Meetings complaint form, call (866) 632–9992. The grantee’s proposed service area AGENCY: International Trade Submit your completed form or letter to under the ASF would be Escambia, Administration, U.S. Department of USDA by: Okaloosa and Santa Rosa Counties, Commerce. (1) Mail: United States Department of Florida, as described in the application. ACTION: Notice of open meeting. Agriculture, Office of the Assistant If approved, the grantee would be able Secretary for Civil Rights, 1400 to serve sites throughout the service area SUMMARY: This notice sets forth the Independence Avenue SW, Washington, based on companies’ needs for FTZ schedule and proposed topics of DC 20250–9410; designation. The application indicates discussion for the upcoming public (2) Fax: (202) 690–7442; or that the proposed service area is within meeting of the Advisory Committee on (3) Email: [email protected]. and adjacent to the Pensacola U.S. Supply Chain Competitiveness USDA is an equal opportunity Customs and Border Protection port of (Committee). provider, employer, and lender. entry. DATES: The meeting will be held on June Chadwick Parker, The applicant is requesting authority 24, 2021, from 10:00 a.m. to 4:00 p.m., Acting Administrator, Rural Housing Service. to reorganize its existing zone to include Eastern Daylight Time (EDT). Sites 1, 2, 3 and 5 as ‘‘magnet’’ sites and [FR Doc. 2021–11564 Filed 6–1–21; 8:45 am] ADDRESSES: The meeting will be held BILLING CODE 3410–XV–P that Site 4 be removed. The ASF allows for the possible exemption of one via Webex. magnet site from the ‘‘sunset’’ time FOR FURTHER INFORMATION CONTACT: Richard Boll, Office of Supply Chain, DEPARTMENT OF COMMERCE limits that generally apply to sites under the ASF, and the applicant proposes Professional & Business Services Foreign-Trade Zones Board that Site 1 be so exempted. The (OSCPBS), International Trade applicant is also requesting approval of Administration. Telephone: 202–482– [B–42–2021] the following ‘‘usage-driven’’ sites for 1135. Email: [email protected]. SnackCrate, Inc.: Site 6 (1 acre)—201 SUPPLEMENTARY INFORMATION: Foreign-Trade Zone 249—Pensacola, East Wright Street, Pensacola; Site 7 (1 Background: The Committee was Florida; Application for Reorganization acre)—3330 Bill Metzger Lane, established under the discretionary and Expansion Under Alternative Site Pensacola; and, Site 8 (1 acre)—3867 authority of the Secretary of Commerce Framework Palafox Street, Pensacola. The and in accordance with the Federal An application has been submitted to application would have no impact on Advisory Committee Act (5 U.S.C. the Foreign-Trade Zones (FTZ) Board by FTZ 249’s previously authorized App.). It provides advice to the the Pensacola-Escambia County subzone. Secretary of Commerce on the necessary Promotion & Development Commission, In accordance with the FTZ Board’s elements of a comprehensive policy grantee of FTZ 249, requesting authority regulations, Christopher Kemp of the approach to supply chain to reorganize and expand the zone FTZ Staff is designated examiner to competitiveness and on regulatory under the alternative site framework evaluate and analyze the facts and policies and programs and investment (ASF) adopted by the FTZ Board (15 information presented in the application priorities that affect the competitiveness CFR 400.2(c)). The ASF is an option for and case record and to report findings of U.S. supply chains. For more grantees for the establishment or and recommendations to the FTZ Board. information about the Committee visit: reorganization of zones and can permit Public comment is invited from https://www.trade.gov/acscc. significantly greater flexibility in the interested parties. Submissions shall be Matters To Be Considered: Committee designation of new subzones or ‘‘usage- addressed to the FTZ Board’s Executive members are expected to continue driven’’ FTZ sites for operators/users Secretary and sent to: [email protected]. The discussing the major competitiveness- located within a grantee’s ‘‘service area’’ closing period for their receipt is August related topics raised at the previous in the context of the FTZ Board’s 2, 2021. Rebuttal comments in response Committee meetings, including supply standard 2,000-acre activation limit for to material submitted during the chain resilience and congestion; trade a zone. The application was submitted foregoing period may be submitted and competitiveness; freight movement pursuant to the Foreign-Trade Zones during the subsequent 15-day period to and policy; trade innovation; regulatory Act, as amended (19 U.S.C. 81a–81u), August 16, 2021. issues; finance and infrastructure; and and the regulations of the Board (15 CFR A copy of the application will be workforce development. The part 400). It was formally docketed on available for public inspection in the Committee’s subcommittees will report May 26, 2021. ‘‘Reading Room’’ section of the FTZ on the status of their work regarding FTZ 249 was approved by the FTZ Board’s website, which is accessible via these topics. The agenda may change to Board on May 23, 2001 (Board Order www.trade.gov/ftz. For further accommodate other Committee 1167, 66 FR 30408, June 6, 2001. The information, contact Christopher Kemp business. The Office of Supply Chain, current zone includes the following at [email protected]. Professional & Business Services will sites: Site 1 (40 acres)—Port of post the final detailed agenda on its Pensacola, 700 S. Barracks Street, Dated: May 26, 2021. website, https://www.trade.gov/acscc, at Pensacola; Site 2 (1,400 acres)— Elizabeth Whiteman, least one week prior to the meeting. Pensacola Regional Airport Complex, Acting Executive Secretary. The meeting is open to the public and 2430 Airport Boulevard, Pensacola; Site [FR Doc. 2021–11538 Filed 6–1–21; 8:45 am] press on a first-come, first-served basis. 3 (70 acres)—Pensacola Shipyard BILLING CODE 3510–DS–P Space is limited. Please contact Richard
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Boll, at [email protected], for Laura Barmby, National DEC Liaison, promotion efforts. DEC member participation information. US&FCS, at (202) 482–2675. appointments are made without regard Interested parties may submit written SUPPLEMENTARY INFORMATION: District to political affiliation. DEC membership comments to the Committee at any time Export Councils support the mission of is open to U.S. citizens and permanent before and after the meeting. Parties US&FCS by facilitating the development residents of the United States. As wishing to submit written comments for of an effective local export assistance representatives of the local exporting consideration by the Committee in network, supporting the expansion of community, DEC Members must reside advance of this meeting should email export opportunities for local U.S. in, or conduct the majority of their work them to [email protected]. companies, serving as a communication in, the territory that the DEC covers. For consideration during the meeting, link between the business community DEC membership is not open to federal and to ensure transmission to the and US&FCS, and assisting in government employees. Individuals Committee prior to the meeting, coordinating the activities of trade representing foreign governments, comments must be received no later assistance partners to leverage available including individuals registered with than 5:00 p.m. EST on June 17, 2021. resources. Individuals appointed to a the Department of Justice under the Comments received after June 17, 2021, DEC become part of a select corps of Foreign Agents Registration Act, must will be distributed to the Committee, trade professionals dedicated to disclose such representation and may be but may not be considered at the providing international trade leadership disqualified if the Department meeting. The minutes of the meeting and guidance to the local business determines that such representation is will be posted on the Committee community and assistance to the likely to impact the ability to carry out website within 60 days of the meeting. Department of Commerce on export the duties of a DEC member or raise an appearance issue for the Department. Eugene Alford, development issues. DEC members are volunteers. DEC members are not Selection Process: Nominations of Supply Chain Team Lead, Office of Supply individuals who have applied for DEC Chain, Professional, and Business Services. special government employees. DEC members receive no compensation for membership will be forwarded to the [FR Doc. 2021–11510 Filed 6–1–21; 8:45 am] their participation in DEC activities or local USEAC Director for the respective BILLING CODE 3510–DR–P reimbursement for travel and other DEC for that Director’s consideration. personal expenses. The local USEAC Director ensures that DEPARTMENT OF COMMERCE Nomination Process: Each DEC has a all nominees meet the membership maximum membership of 35. criteria. The local USEAC Director then, International Trade Administration Approximately half of the positions are in consultation with the local DEC open on each DEC for the four-year term Executive Committee, evaluates all District Export Council Nomination that begins on January 1, 2022 and runs nominations to determine their interest, Opportunity through December 31, 2025. All commitment, and qualifications. In potential nominees must complete an reviewing nominations, the local AGENCY: International Trade online nomination form and consent to USEAC Director strives to ensure a Administration, Department of sharing of the information on that form balance among exporters from a Commerce. with the DEC Executive Committee for manufacturing or service industry and ACTION: Notice of opportunity for its consideration, and consent, if export service providers. A fair appointment to serve as a District appointed, to sharing of their contact representation should be considered Export Council member. information with other DEC members from companies and organizations that and relevant government agencies and support exporters, representatives of SUMMARY: The Department of Commerce private sector organizations with a focus local and state government, and trade is currently seeking nominations of on trade. Interested individuals are organizations and associations. individuals for consideration for highly encouraged to reach out to the Membership should reflect the diversity appointment by the Secretary of local USEAC Director to learn more of the local business community, Commerce to serve as members of one about the DECs and to begin the encompass a broad range of businesses of the 61 District Export Councils application process as soon as possible. and industry sectors, and be distributed (DECs) nationwide. DECs are closely While interested individuals can submit geographically across the DEC service affiliated with the U.S. Export applications prior to July 1, 2021, area. Assistance Centers (USEACs) of the U.S. USEAC Directors will formally accept For current DEC members seeking and Foreign Commercial Service nominations from July 1 until July 31, reappointment, the local USEAC (US&FCS), which is part of the Global 2021. Director, in consultation with the DEC Markets unit within the International Eligibility and Appointment Criteria: Executive Committee, also carefully Trade Administration, and play a key Appointment is based upon an considers the nominee’s activity level role in the planning and coordination of individual’s international trade during the previous term and export activities in their communities. leadership in the local community, demonstrated ability to work DATES: Nominations for individuals to a ability to influence the local cooperatively and effectively with other DEC must be received by the local environment for exporting, knowledge DEC members and US&FCS staff. As USEAC Director by 5:00 p.m. local time of day-to-day international operations, appointees of the Secretary of on July 31, 2021. interest in export development, and Commerce in high-profile positions, FOR FURTHER INFORMATION CONTACT: willingness and ability to devote time to though volunteers, DEC Members are Please contact the Director of your local DEC activities. Members must be expected to actively participate in the USEAC for more information on DECs employed as exporters or export service DEC and support the work of local and the nomination process. You may providers or in a profession which US&FCS offices. Those that do not identify your local USEAC by entering supports U.S. export promotion efforts. support the work of the office or do not your zip code online at http:// Members include exporters, export actively participate in DEC activities export.gov/usoffices/index.asp. For service providers and others whose will not be considered for re- general program information, contact profession supports U.S. export nomination.
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The local USEAC Director, in April 6, 2021, Commerce published the domestic like product to which the consultation with the local DEC preliminary results of changed Orders pertain lack interest in the relief Executive Committee, determines which circumstances reviews (CCRs) and provided by the Orders with respect to nominees to forward to the US&FCS revocation, in part, of the Orders, LVL door stiles and rails. Accordingly, Office of U.S. Field for further pursuant to section 751(b)(1) of the we are revoking the Orders, in part, with consideration for recommendation to Tariff Act of 1930, as amended (the Act) respect to certain door stiles and rails the Secretary of Commerce. A and 19 CFR 351.216(b), with respect to made of LVL that have a width not to candidate’s background and character LVL door stiles and rails.2 We invited exceed 50 millimeters, a thickness not are pertinent to determining suitability interested parties to comment on the to exceed 50 millimeters, and a length and eligibility for DEC membership. Preliminary Results. of less than 2,450 millimeters. The Since DEC appointments are made by On April 14, 2021, we received new scope description below includes this the Secretary, the Department must factual information from MJB Wood exclusion language. make a suitability determination for all Group LLC (MJB), a U.S. importer of the Scope of the Orders DEC nominees. After completion of a subject merchandise, which was placed vetting process, the Secretary selects on the record by MJB at Commerce’s The merchandise subject to these nominees for appointment to local request.3 On April 20, 2021, Commerce Orders is hardwood and decorative DECs. DEC members are appointed by received comments from MJB and the plywood, and certain veneered panels and serve at the pleasure of the petitioner 4 in response to the as described below. For purposes of this Secretary of Commerce. Preliminary Results.5 On April 27, 2020, proceeding, hardwood and decorative plywood is defined as a generally flat, Authority: 15 U.S.C. 1512 and 4721. we received rebuttal comments from the petitioner.6 multilayered plywood or other veneered Laura Barmby, panel, consisting of two or more layers Final Results of Changed District Export Council Program Manager. or plies of wood veneers and a core, Circumstances Reviews, and [FR Doc. 2021–11560 Filed 6–1–21; 8:45 am] with the face and/or back veneer made Revocation of the Orders, in Part of non-coniferous wood (hardwood) or BILLING CODE 3510–FP–P Because no party submitted bamboo. The veneers, along with the comments opposing the Preliminary core may be glued or otherwise bonded DEPARTMENT OF COMMERCE Results of these CCRs, and the record together. Hardwood and decorative contains no further information or plywood may include products that International Trade Administration evidence that weighs against the meet the American National Standard for Hardwood and Decorative Plywood, [A–570–051; C–570–052] proposed partial revocations, Commerce has determined, pursuant to sections ANSI/HPVA HP–1–2016 (including any Certain Hardwood Plywood Products 751(d)(1) and 782(h) of the Act, and 19 revisions to that standard). From the People’s Republic of China: CFR 351.222(g), that there are changed For purposes of this proceeding a Final Results of Changed circumstances that warrant revocation ‘‘veneer’’ is a slice of wood regardless of Circumstances Reviews, and of the Orders, in part. Specifically, in thickness which is cut, sliced or sawed from a log, bolt, or flitch. The face and Revocation of the Antidumping and light of the petitioner’s statement of lack back veneers are the outermost veneer of Countervailing Duty Orders in Part of interest, and the absence of comments from any interested party addressing the wood on either side of the core AGENCY: Enforcement and Compliance issue of domestic industry support, we irrespective of additional surface International Trade Administration, find that producers accounting for coatings or covers as described below. The core of hardwood and decorative Department of Commerce. substantially all of the production of the SUMMARY: The Department of Commerce plywood consists of the layer or layers of one or more material(s) that are (Commerce) is revoking, in part, the and Antidumping Duty Order, 83 FR 504 (January antidumping duty (AD) and 4, 2018) (AD Order); and Certain Hardwood situated between the face and back countervailing duty (CVD) orders on Plywood Products from the People’s Republic of veneers. The core may be composed of certain hardwood plywood products China: Countervailing Duty Order, 83 FR 513 a range of materials, including but not (January 4, 2018) (CVD Order) (collectively, the limited to hardwood, softwood, (hardwood plywood) from the People’s Orders). Republic of China (China) with respect 2 See Certain Hardwood Plywood Products from particleboard, or medium-density to certain finished laminated veneer the People’s Republic of China: Preliminary Results fiberboard (MDF). lumber (LVL) door stiles and rails. of Changed Circumstances Reviews, and All hardwood plywood is included Consideration of Revocation of the Antidumping within the scope of these Orders DATES: Applicable June 2, 2021. and Countervailing Duty Orders in Part, 86 FR regardless of whether or not the face FOR FURTHER INFORMATION CONTACT: 17774 (April 6, 2021) (Preliminary Results). 3 and/or back veneers are surface coated Nicolas Mayora, AD/CVD Operations, See MJB’s Letter, ‘‘Changed Circumstances Reviews of Hardwood Plywood Products from the or covered and whether or not such Office V, Enforcement and Compliance, People’s Republic of China: New Factual surface coating(s) or covers obscures the International Trade Administration, Information,’’ dated April 14, 2021 (MJB’s NFI grain, textures, or markings of the wood. U.S. Department of Commerce, 1401 Letter). 4 The petitioner is the Coalition for Fair Trade in Examples of surface coatings and covers Constitution Avenue NW, Washington, include, but are not limited to: Ultra DC 20230; telephone: (202) 482–3053. Hardwood Plywood. 5 See MJB’s Letter, ‘‘Changed Circumstances violet light cured polyurethanes; oil or SUPPLEMENTARY INFORMATION: Reviews of Hardwood Plywood Products from the oil-modified or water based People’s Republic of China: Case Brief on polyurethanes; wax; epoxy-ester Background Preliminary Results,’’ dated April 20, 2021 (MJB’s finishes; moisture-cured urethanes; On January 4, 2018, Commerce Comments); see also Petitioner’s Letter, ‘‘Hardwood paints; stains; paper; aluminum; high published the AD and CVD orders on Plywood Products from the People’s Republic of China: Comments in Response to the Department’s pressure laminate; MDF; medium hardwood plywood from China.1 On Preliminary Results,’’ dated April 20, 2021 density overlay (MDO); and phenolic (Petitioner’s Comments). 1 See Certain Hardwood Plywood Products from 6 See Petitioner’s Letter, ‘‘Hardwood Plywood film. Additionally, the face veneer of the People’s Republic of China: Amended Final Products from the People’s Republic of China: hardwood plywood may be sanded; Determination of Sales at Less Than Fair Value, Rebuttal Comments,’’ dated April 27, 2021. smoothed or given a ‘‘distressed’’
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appearance through such methods as adhesives (also known as ‘‘solid on the assembly of a finished unit of hand-scraping or wire brushing. All bamboo’’); and (7) Phenolic Film Faced cabinetry. hardwood plywood is included within Plyform (PFF), also known as Phenolic Excluded from the scope of these the scope even if it is trimmed; cut-to- Surface Film Plywood (PSF), defined as Orders are finished table tops, which are size; notched; punched; drilled; or has a panel with an ‘‘Exterior’’ or ‘‘Exposure table tops imported in finished form underwent other forms of minor 1’’ bond classification as is defined by with pre-cut or drilled openings to processing. The Engineered Wood Association, attach the underframe or legs. The table All hardwood and decorative having an opaque phenolic film layer tops are ready for use at the time of plywood is included within the scope of with a weight equal to or greater than import and require no further finishing these Orders, without regard to 90g/m3 permanently bonded on both or processing. dimension (overall thickness, thickness the face and back veneers and an Excluded from the scope of these of face veneer, thickness of back veneer, opaque, moisture resistant coating Orders are finished countertops that are thickness of core, thickness of inner applied to the edges. imported in finished form and require veneers, width, or length). However, the Excluded from the scope of these no further finishing or manufacturing. most common panel sizes of hardwood Orders are wooden furniture goods that, Excluded from the scope of these and decorative plywood are 1219 x 1829 at the time of importation, are fully Orders are laminated veneer lumber mm (48 x 72 inches), 1219 x 2438 mm assembled and are ready for their (LVL) door and window components (48 x 96 inches), and 1219 x 3048 mm intended uses. Also excluded from the with (1) a maximum width of 44 (48 x 120 inches). scope of these Orders is ‘‘ready to millimeters, a thickness from 30 Subject merchandise also includes assemble’’ (RTA) furniture. RTA millimeters to 72 millimeters, and a hardwood and decorative plywood that furniture is defined as (A) furniture length of less than 2413 millimeters (2) has been further processed in a third packaged for sale for ultimate purchase water boiling point exterior adhesive, country, including but not limited to by an end-user that, at the time of (3) a modulus of elasticity of 1,500,000 trimming, cutting, notching, punching, importation, includes (1) all wooden pounds per square inch or higher, (4) drilling, or any other processing that components (in finished form) required finger-jointed or lap-jointed core veneer would not otherwise remove the to assemble a finished unit of furniture, with all layers oriented so that the grain merchandise from the scope of the (2) all accessory parts (e.g., screws, is running parallel or with no more than Orders if performed in the country of washers, dowels, nails, handles, knobs, 3 dispersed layers of veneer oriented manufacture of the in-scope product. adhesive glues) required to assemble a with the grain running perpendicular to The scope of the Orders excludes the finished unit of furniture, and (3) the other layers; and (5) top layer following items: (1) Structural plywood instructions providing guidance on the machined with a curved edge and one (also known as ‘‘industrial plywood’’ or assembly of a finished unit of furniture; or more profile channels throughout. ‘‘industrial panels’’) that is (B) unassembled bathroom vanity Excluded from the scope of these manufactured to meet U.S. Products cabinets, having a space for one or more Orders are certain door stiles and rails Standard PS 1–09, PS 2–09, or PS 2–10 sinks, that are imported with all made of LVL that have a width not to for Structural Plywood (including any unassembled hardwood and hardwood exceed 50 millimeters, a thickness not revisions to that standard or any plywood components that have been to exceed 50 millimeters, and a length substantially equivalent international cut-to-final dimensional component of less than 2,450 millimeters. standard intended for structural shape/size, painted or stained prior to Imports of hardwood plywood are plywood), and which has both a face importation, and stacked within a primarily entered under the following and a back veneer of coniferous wood; singled shipping package, except for Harmonized Tariff Schedule of the (2) products which have a face and back furniture feet which may be packed and United States (HTSUS) subheadings: veneer of cork; (3) multilayered wood shipped separately; or (C) unassembled 4412.10.0500; 4412.31.0520; flooring, as described in the bathroom vanity linen closets that are 4412.31.0540; 4412.31.0560; antidumping duty and countervailing imported with all unassembled 4412.31.0620; 4412.31.0640; duty orders on Multilayered Wood hardwood and hardwood plywood 4412.31.0660; 4412.31.2510; Flooring from the People’s Republic of components that have been cut-to-final 4412.31.2520; 4412.31.2610; China, Import Administration, dimensional shape/size, painted or 4412.31.2620; 4412.31.4040; International Trade Administration. See stained prior to importation, and 4412.31.4050; 4412.31.4060; Multilayered Wood Flooring from the stacked within a single shipping 4412.31.4075; 4412.31.4080; People’s Republic of China, 76 FR 76690 package, except for furniture feet which 4412.31.4140; 4412.31.4150; (December 8, 2011) (amended final may be packed and shipped separately. 4412.31.4160; 4412.31.4180; determination of sales at less than fair Excluded from the scope of these 4412.31.5125; 4412.31.5135; value and antidumping duty order), and Orders are kitchen cabinets that, at the 4412.31.5155; 4412.31.5165; Multilayered Wood Flooring from the time of importation, are fully assembled 4412.31.5175; 4412.31.5235; People’s Republic of China, 76 FR 76693 and are ready for their intended uses. 4412.31.5255; 4412.31.5265; (December 8, 2011) (countervailing duty Also excluded from the scope of these 4412.31.5275; 4412.31.6000; order), as amended by Multilayered Orders are RTA kitchen cabinets. RTA 4412.31.6100; 4412.31.9100; Wood Flooring from the People’s kitchen cabinets are defined as kitchen 4412.31.9200; 4412.32.0520; Republic of China: Amended cabinets packaged for sale for ultimate 4412.32.0540; 4412.32.0565; Antidumping and Countervailing Duty purchase by an end-user that, at the 4412.32.0570; 4412.32.0620; Orders, 77 FR 5484 (February 3, 2012); time of importation, includes (1) all 4412.32.0640; 4412.32.0670; (4) multilayered wood flooring with a wooden components (in finished form) 4412.32.2510; 4412.32.2525; face veneer of bamboo or composed required to assemble a finished unit of 4412.32.2530; 4412.32.2610; entirely of bamboo; (5) plywood which cabinetry, (2) all accessory parts (e.g., 4412.32.2630; 4412.32.3125; has a shape or design other than a flat screws, washers, dowels, nails, handles, 4412.32.3135; 4412.32.3155; panel, with the exception of any minor knobs, hooks, adhesive glues) required 4412.32.3165; 4412.32.3175; processing described above; (6) products to assemble a finished unit of cabinetry, 4412.32.3185; 4412.32.3235; made entirely from bamboo and and (3) instructions providing guidance 4412.32.3255; 4412.32.3265;
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4412.32.3275; 4412.32.3285; However, Commerce has exercised its results of these reviews starting April 4412.32.5600; 4412.32.3235; discretion and deviated from this 25, 2017, for purposes of the CVD Order, 4412.32.3255; 4412.32.3265; general practice if the particular facts of and June 23, 2017, for purposes of the 4412.32.3275; 4412.32.3285; the case have implications for the AD Order.14 Both parties note that they 4412.32.5700; 4412.94.1030; effective date of the partial revocation are not aware of any unliquidated 4412.94.1050; 4412.94.3105; selected by Commerce.9 Specifically, entries or pending administrative 4412.94.3111; 4412.94.3121; when selecting the effective date for the reviews that would complicate 4412.94.3141; 4412.94.3161; partial revocation, Commerce has Commerce’s implementation of the 4412.94.3175; 4412.94.4100; considered factors such as the effective revocations.15 The petitioner also states 4412.99.0600; 4412.99.1020; date proposed by the petitioner (and/or that it is not aware of any policy or legal 4412.99.1030; 4412.99.1040; the effective date agreed to by all considerations that would bar 4412.99.3110; 4412.99.3120; parties),10 the existence of unliquidated Commerce from selecting the full 4412.99.3130; 4412.99.3140; entries dating back to the requested revocation dates, as requested.16 The 4412.99.3150; 4412.99.3160; effective date,11 whether an interested petitioner and MJB further claim that 4412.99.3170; 4412.99.4100; party requested the effective date of the not implementing the effective dates of 4412.99.5115; and 4412.99.5710. revocation,12 and whether the requested the CCRs as requested would cause Imports of hardwood plywood may effective date creates potential unnecessary harm to MJB.17 No other also enter under HTSUS subheadings administrability issues (e.g., the parties commented in response to the 4412.99.6000; 4412.99.7000; products covered by the partial request for public comment on the 4412.99.8000; 4412.99.9000; revocation are in the sales database used effective revocation dates in the 4412.10.9000; 4412.94.5100; in the dumping margin calculations for Initiation Notice or in our Preliminary 4412.94.9500; and 4412.99.9500. While a completed administrative review with Results.18 the HTSUS subheadings are provided a period of review that overlaps with We find, based on the facts in this for convenience and customs purposes, date requested).13 case, that it is appropriate to apply these the written description of the scope of The petitioner and MJB requested partial revocations retroactively to these Orders is dispositive. retroactive application of the final unliquidated entries that were entered Application of the Final Results of 13, 2006); Notice of Final Results of Antidumping or withdrawn from warehouse, for These Reviews Duty Changed Circumstances Reviews and consumption, on or after April 25, 2017, MJB and the petitioner have requested Revocation of Orders in Part: Certain Corrosion- for the CVD Order, and June 23, 2017, Resistant Carbon Steel Flat Products from Canada for the AD Order, i.e., the effective dates retroactive application of the final and Germany, 71 FR 14498 (March 22, 2006); and results of these reviews starting April Notice of Final Results of Antidumping Duty of the preliminary determinations in the 25, 2017, for the purposes of the CVD Changed Circumstances Review, and Determination AD and CVD investigations. We have to Revoke Order in Part: Certain Cased Pencils from determined based on the available Order, and June 23, 2017, for purposes the People’s Republic of China, 68 FR 62428 of the AD Order,7 i.e., the dates that the (November 4, 2003). information that there are no preliminary determinations in the AD 9 See section 751(d)(3) of the Act; and Itochu administrability concerns with using the and CVD investigations published in the Building Products v. United States, 2014 WL effective dates as requested by the 1363999, at *6 (CIT April 8, 2014) (Itochu Bldg. petitioner and MJB. Commerce is also Federal Register. Section 751(d)(3) of Prod) (‘‘The statutory provision, as discussed above, the Act provides that ‘‘{a} provides Commerce with discretion in the selection not currently aware of any unliquidated determination under this section to of the effective date for a partial revocation entries that would complicate revoke an order . . . shall apply with following a changed circumstances review, but that Commerce’s implementation of these discretion may not be exercised arbitrarily so as to revocations. Accordingly, we are respect to unliquidated entries of the decide the question presented without considering subject merchandise which are entered, the relevant and competing considerations’’). exercising our discretion, based on the or withdrawn from warehouse, for 10 See, e.g., Carbon and Certain Alloy Steel Wire particular circumstances in these CCRs, consumption on or after the date Rod from Brazil, Canada, Indonesia, Mexico, to make the effective dates of these Moldova, Trinidad and Tobago, and Ukraine: Final CCRs April 25, 2017, for the purposes of determined by the administering Results of Changed Circumstances Review, 68 FR authority.’’ Consistently, Commerce’s 64079 (November 12, 2003); and Stainless Steel the CVD Order and June 23, 2017, for general practice is to instruct the U.S. Hollow Products from Sweden; Termination of the purposes of the AD Order. Customs and Border Protection (CBP) to Antidumping Duty Administrative Reviews, Final Results of Changed Circumstances Antidumping 14 liquidate without regard to AD and CVD Duty Administrative Review, and Revocation In Part See Petitioner’s Comments at 1 and MJB’s duties, and to refund any estimated of Antidumping Duty Order, 60 FR 42529 (August Comments at 2. 15 See Petitioner’s Comments at 2; see also MJB’s deposits of those duties, on all 16, 1995). 11 See Steel Wire Garment Hangers from the Comments at 4; and MJB’s NFI Letter at 4. unliquidated entries of the merchandise People’s Republic of China: Final Results of 16 See Petitioner’s Comments at 3. covered by a revocation that are not Changed Circumstances Review, and Revocation in 17 See Petitioner’s Comments at 2; see also MJB’s covered by the final results of an Part of Antidumping Duty Order, 74 FR 50956 Comments at 4; and MJB’s NFI Letter at 4. administrative review or automatic (October 2, 2009); Notice of Final Results of 18 See Certain Hardwood Plywood Products from 8 Antidumping Duty Changed Circumstances Review, the People’s Republic of China: Initiation of liquidation. and Determination To Revoke Order in Part; Certain Antidumping Duty and Countervailing Duty Cased Pencils from the People’s Republic of China, Changed Circumstances Reviews, 86 FR 8766 7 See MJB’s Comments at 2 and Petitioner’s 71 FR 13352 (March 15, 2006); and Stainless Steel (February 9, 2021) (Initiation Notice) (requesting Comments at 2. Sheet and Strip in Coils from Japan: Final Results interested parties to comment on these CCRs, 8 See, e.g., Certain Pasta from Italy: Final Results of Changed Circumstance Antidumping Duty including ‘‘comments on industry support, the of Countervailing Duty Changed Circumstances Review, and Determination To Revoke Order in proposed partial revocation language, and whether Review and Revocation, In Part, 76 FR 27634 (May Part), 65 FR 77578 (December 12, 2000). any of their entries are covered by this revocation 12, 2011); Stainless Steel Bar from the United 12 See Large Newspaper Printing Presses and request but enjoined from liquidation due to an Kingdom: Notice of Final Results of Changed Components Thereof, Whether Assembled or injunction issued in ongoing litigation’’); see also Circumstances Review and Revocation of Order, in Unassembled, from Japan: Final Results of Changed Preliminary Results, 86 FR at 17775–76 (stating, Part, 72 FR 65706 (November 23, 2007); Notice of Circumstances Antidumping Duty Administrative inter alia, that no interested party notified Final Results of Antidumping Duty Changed Review and Intent To Revoke Antidumping Duty Commerce of any unliquidated entries that are Circumstances Review and Revocation of Order In Order, In Part, 64 FR 72315 (December 27, 1999). covered by the revocation request but enjoined from Part: Certain Corrosion-Resistant Carbon Steel Flat 13 See Itochu Bldg. Prods., 2014 WL 1363999, at liquidation due to an injunction issued in ongoing Products from Germany, 71 FR 66163 (November *6. litigation).
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Instructions to CBP DEPARTMENT OF COMMERCE (302) 526–5253, at least 5 days prior to the meeting date. Because we determine that there are National Oceanic and Atmospheric Authority: 16 U.S.C. 1801 et seq. changed circumstances that warrant the Administration revocation of the Orders, in part, we Dated: May 27, 2021. [RTID 0648–XB106] will instruct CBP to liquidate without Tracey L. Thompson, regard to AD and CVD duties, and to Mid-Atlantic Fishery Management Acting Deputy Director, Office of Sustainable refund any estimated AD and CVD Council (MAFMC); Public Meeting Fisheries, National Marine Fisheries Service. duties, on all unliquidated entries of the [FR Doc. 2021–11548 Filed 6–1–21; 8:45 am] merchandise covered by these partial AGENCY: National Marine Fisheries BILLING CODE 3510–22–P revocations effective April 25, 2017, for Service (NMFS), National Oceanic and purposes of the CVD Order and June 23, Atmospheric Administration (NOAA), 2017, for purposes of the AD Order. Commerce. DEPARTMENT OF COMMERCE 19 ACTION: Notice; public meeting. Consistent with its recent notice, National Oceanic and Atmospheric Commerce intends to issue assessment SUMMARY: The Mid-Atlantic Fishery Administration instructions to CBP no earlier than 35 Management Council’s Summer days after the date of publication of Flounder, Scup, and Black Sea Bass [RTID 0648–XB136] these final results in the Federal Advisory Panel will hold a public Register. If a timely summons is filed at webinar meeting, jointly with the Gulf of Mexico Fishery Management the U.S. Court of International Trade, Atlantic States Marine Fisheries Council; Public Meeting the assessment instructions will direct Commission’s Summer Flounder, Scup, CBP not to liquidate relevant entries and Black Sea Bass Advisory Panel. AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and until the time for parties to file a request DATES: The meeting will be held on for a statutory injunction has expired Monday, June 21, 2021, from 1 p.m. Atmospheric Administration (NOAA), (i.e., within 90 days of publication). until 4 p.m. Commerce. ADDRESSES: ACTION: Notice of a public meeting via Notification to Interested Parties The meeting will be held via webinar and connection information webinar. This notice serves as a final reminder can be accessed at: https:// SUMMARY: The Gulf of Mexico Fishery to parties subject to administrative www.mafmc.org/council-events/2021/ Management Council (Council) will protective order (APO) of their joint-sfsbsb-ap-meeting-jun21. hold a five-day hybrid (virtual and in- responsibility concerning the Council address: Mid-Atlantic Fishery person) meeting to consider actions disposition of proprietary information Management Council, 800 N State affecting the Gulf of Mexico fisheries in disclosed under APO in accordance Street, Suite 201, Dover, DE 19901; the exclusive economic zone (EEZ). with 19 CFR 351.305(a)(3). Timely telephone: (302) 674–2331; www.mafmc.org. DATES: The meeting will convene written notification of the return/ Monday, June 21 through Friday, June destruction of APO materials or FOR FURTHER INFORMATION CONTACT: 25, 2021, from 8:30 a.m. until 5 p.m. conversion to judicial protective order is Christopher M. Moore, Ph.D., Executive EDT, with the exception of Thursday, hereby requested. Failure to comply Director, Mid-Atlantic Fishery June 24, 2021 until 5:30 p.m. EDT and with the regulations and terms of the Management Council, telephone: (302) Friday, June 25, 2021 until 4:30 p.m. APO is a sanctionable violation. 526–5255. EDT. SUPPLEMENTARY INFORMATION: The Mid- We are issuing and publishing these ADDRESSES: Atlantic Fishery Management Council’s The meeting will be a final results and revocation, in part, and Summer Flounder, Scup, and Black Sea hybrid meeting offering both in-person notice in accordance with sections Bass Advisory Panel will meet via and virtual options for attending the 751(b) and 777(i) of the Act and 19 CFR webinar jointly with the Atlantic States meeting. You may attend the meeting 351.216, 19 CFR 351.222(c)(3), and 19 Marine Fisheries Commission’s Summer in-person at the Opal Key Resort and CFR 351.222. Flounder, Scup, and Black Sea Bass Marina, located at 245 Front Street, Key West, FL 33040. Please note, meeting Dated: May 25, 2021. Advisory Panel. The purpose of this attendees will be expected to follow Christian Marsh, meeting is to discuss recent performance of the summer flounder, COVID–19 safety protocols as Acting Assistant Secretary for Enforcement determined by the Council and hotel. and Compliance. scup, and black sea bass commercial and recreational fisheries and develop Such precautions may include daily [FR Doc. 2021–11539 Filed 6–1–21; 8:45 am] Fishery Performance Reports. These temperature checks, masks, room BILLING CODE 3510–DS–P reports will be considered by the capacity restrictions, and/or social Scientific and Statistical Committee, the distancing. If you prefer to attend Monitoring Committee, Mid-Atlantic virtually you can access the log-on Fishery Management Council, and information on our website at Atlantic States Marine Fisheries www.gulfcouncil.org. Commission when setting 2022 and Council address: Gulf of Mexico 2023 catch and landings limits and Fishery Management Council, 4107 W management measures for summer Spruce Street, Suite 200, Tampa, FL flounder, scup, and black sea bass. 33607; telephone: (813) 348–1630. These meetings are physically FOR FURTHER INFORMATION CONTACT: Dr. 19 See Notice of Discontinuation of Policy to Issue accessible to people with disabilities. Carrie Simmons, Executive Director, Liquidation Instructions After 15 Days in Gulf of Mexico Fishery Management Applicable Antidumping and Countervailing Duly Requests for sign language Administrative Proceedings, 86 FR 3995 (January interpretation or other auxiliary aid Council; telephone: (813) 348–1630. 15, 2021). should be directed to Kathy Collins, SUPPLEMENTARY INFORMATION:
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Agenda Wednesday, June 23, 2021; 8:30 a.m.–5 virtual testimony closes one hour (1:15 p.m. p.m. EDT) before public testimony Monday, June 21, 2021; 8:30 a.m.–5 p.m. The Reef Fish Committee will begins. Persons wishing to give public The meeting will begin in a FULL convene to review the Reef Fish testimony in-person must register at the COUNCIL—CLOSED SESSION to Landings; discuss Final Action Item: registration kiosk in the meeting room. finalize the selection of Reef Fish and Reef Fish Amendment 53: Red Grouper Shrimp Advisory Panel Members; and, Friday, June 25, 2021; 8:30 a.m.–4:30 Allocations and Annual Catch Levels p.m. selection of Standing and Special and Targets; receive a presentation on Scientific and Statistical Committee Greater Amberjack Historical Landings The Council will receive committee (SSC) Members. and Potential Management Actions; reports from Shrimp, Administrative/ Committee sessions, open to the receive an overview and discuss the Budget, Migratory Species, Mackerel, public, will begin at approximately 1 Individual Fishing Quota 5-Year Habitat Protection and Restoration, Data p.m. with the Shrimp Committee Review; and Reef Fish Amendments Collection, Sustainable Fisheries, Reef receiving updates on Effort Data 36B and 36C: Modifications to Fish, Red Drum Management Collection for 2021; review and discuss Individual Fishing Quota (IFQ) Committees, and Full Council Closed Draft Framework Action: Modifications Programs. Session. The Council receive updates to the Gulf of Mexico Federal Shrimp Immediately following the Reef Fish from the following supporting agencies: Fishery Effort Monitoring and Committee Virtual and In-person South Atlantic Fishery Management Reporting; and, receive an update on the meeting, the Gulf of Mexico Fishery Council; Florida Law Enforcement P-Sea Windplot Pilot Program. Management Council and National Efforts; Gulf States Marine Fisheries The Administrative/Budget Oceanic and Atmospheric Commission; U.S. Coast Guard; U.S. Committee will review and approve the Administration/National Marine Fish and Wildlife Service; and Final Funded 2021 Budget; receive an Fisheries Service (NOAA/NMFS) will Department of State. overview and discuss Potential Projects hold an informal Question and Answer for Council Funding and modifications session. The Council will discuss any Other of Statement of Operation Practices and Thursday, June 24, 2021; 8:30 a.m.–5:30 Business items. Procedures (SOPPs) for SSC Voting p.m. —Meeting Adjourns Practices. The Data Collection Committee will The Migratory Species Committee The meeting will be a hybrid meeting. receive an update on Southeast For-hire will review the Highly Migratory You may register for the webinar by Electronic Reporting (SEFHIER) Species Amendment 13: Three-Year visiting www.gulfcouncil.org and Program and review a Presentation: Review of the Individual Bluefin Quota clicking on the Council meeting on the Draft Options for Electronic Reporting Program that Addresses the Directed calendar should you choose to attend due to Equipment Failure. Fisheries for Bluefin Tuna, and the virtually instead of in-person. The Sustainable Fisheries Committee Incidental Catch of Bluefin by the will receive a Summary Report from the The timing and order in which agenda Pelagic Longline Fishery. Joint Council Section 102 Workgroup; items are addressed may change as Tuesday, June 22, 2021; 8:30 a.m.–5 review SSC Recommendations on required to effectively address the issue, p.m. Acceptable Biological Catch (ABC) and the latest version along with other Control Rule; receive an update for Gulf meeting materials will be posted on the The Mackerel Committee will receive of Mexico Manna Fish Farms; and, website as they become available. an update on Coastal Migratory Pelagics discuss the Bycatch Reduction Although other non-emergency issues Landings; review and discuss Draft Methodology. Amendment 32: Modifications to the not contained in this agenda may come Following lunch at approximately before this group for discussion, in Gulf of Mexico Migratory Group Cobia 1:30 p.m., the Council will reconvene Catch Limits, Possession Limits, Size accordance with the Magnuson-Stevens with a Call to Order, Announcements, Fishery Conservation and Management Limits, and Framework Procedure and Introductions; Adoption of Agenda Act (Magnuson-Stevens Act), those including recommendations from the and Approval of Minutes. The Council issues may not be the subject of formal South Atlantic Council; Draft Options will receive presentations from NOAA Amendment 33: Modifications to the Office of Law Enforcement (OLE); and action during these meeting. Actions Gulf of Mexico Migratory Group King an overview the Commercial Fish Rules will be restricted to those issues Mackerel Catch Limits and Sector Application. specifically listed in this notice and any Allocations; and Draft Amendment 34: The Council will hold public issues arising after publication of this Atlantic King Mackerel Catch Levels testimony 2:15 p.m.–5:30 p.m., EDT for notice that require emergency action and Management Measures. comments pertaining to taking final under Section 305(c) of the Magnuson- The Habitat Protection and action on Reef Fish Amendment 53: Red Stevens Act, provided that the public Restoration Committee will convene to Grouper Allocations and Annual Catch has been notified of the Council’s intent review Draft Options: Generic Essential Levels and Targets; and, comments on to take final action to address the Fish Habitat Amendment and hold a Executive Order #14008 Sec 216c: emergency. discussion session and Draft Conserving Our Nations Lands and Authority: 16 U.S.C. 1801 et seq. Recommendations on President Biden’s Waters; and, open testimony on other E.O. 14008: Tackling the Climate Crisis fishery issues or concerns. Public Dated: May 27, 2021. at Home and Abroad, Section 216 (c): comment may begin earlier than 2:15 Tracey L. Thompson, Conserving our Nation’s Lands and p.m. EDT, but will not conclude before Acting Deputy Director, Office of Sustainable Water. that time. Persons wishing to give Fisheries, National Marine Fisheries Service. The Red Drum Committee will receive public testimony virtually must sign up [FR Doc. 2021–11549 Filed 6–1–21; 8:45 am] a presentation on the Process to Modify on the Council website on the day of BILLING CODE 3510–22–P Red Drum Management Out to 9 nm. public testimony. Registration for
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DEPARTMENT OF COMMERCE audio portion for the public is listen- 2 International Management Activities only except that an opportunity for oral 3. Exempted Fishing Permits National Oceanic and Atmospheric public comment will be provided prior 4. Drift Gillnet Fishery Bycatch Administration to Council Action on each agenda item. Performance Report 5. Drift Gillnet Fishery Hard Caps [RTID 0648–XB138] You can attend the webinar online using a computer, tablet, or smart phone, G. Groundfish Management Pacific Fishery Management Council; using the webinar application. Specific 1. National Marine Fisheries Service Public Meetings meeting information, including Report directions on how to join the meeting 2. Fixed Gear Catch Share Review— AGENCY: National Marine Fisheries and system requirements will be Scoping Service, National Oceanic and provided in the meeting announcement 3. Electronic Monitoring Update 4. Groundfish Endangered Species Atmospheric Administration, on the Pacific Council’s website (see Commerce. Workgroup Report www.pcouncil.org). It is recommended 5. Adopt Stock Assessments ACTION: Notice of public meetings. that you use a computer headset to 6. 2023–24 Harvest Specifications and listen to the meeting, but you may use SUMMARY: Management Measures Planning The Pacific Fishery your telephone for the audio-only Management Council (Pacific Council) 7. Inseason Adjustments—Final portion of the meeting. Action and its advisory entities will hold The following items are on the Pacific online public meetings. H. Coastal Pelagic Species Management Council agenda, but not necessarily in 1. National Marine Fisheries Service DATES: The Pacific Council and its this order. Agenda items noted as ‘‘Final Report advisory entities will meet online June Action’’ refer to actions requiring the 2. Pacific Mackerel Assessment and 21–26 and 28–30, 2021, noting there Council to transmit a proposed fishery Management Measures will be no meetings Sunday, June 27, management plan, proposed plan 3. Management Framework for the 2021. The Pacific Council meeting will amendment, or proposed regulations to Central Subpopulation of Northern begin on Thursday, June 24, 2021 at 9 the U.S. Secretary of Commerce, under Anchovy a.m. Pacific Daylight Time (PDT), Sections 304 or 305 of the Magnuson- reconvening at 8 a.m. Friday, June 25 Stevens Fishery Conservation and Advisory Body Agendas through Saturday, June 26. The Council Management Act. Additional detail on Advisory body agendas will include will reconvene Monday, June 28, agenda items, Council action, and discussions of relevant issues that are through Wednesday, June 30, 2021. All advisory entity meeting times, are on the Pacific Council agenda for this meetings are open to the public, except described in Agenda Item A.4, Proposed meeting and may also include issues for a Closed Session held from 8 a.m. to Council Meeting Agenda, and will be in that may be relevant to future Council 9 a.m., Thursday, June 24, to address the advance June 2021 briefing materials meetings. Proposed advisory body litigation and personnel matters. The and posted on the Pacific Council agendas for this meeting will be Pacific Council will meet as late as website at www.pcouncil.org no later available on the Pacific Council website necessary each day to complete its than Friday, June 4, 2021. www.pcouncil.org no later than Friday, scheduled business. A. Call to Order June 4, 2021. ADDRESSES: Meetings of the Pacific 1. Opening Remarks Schedule of Ancillary Meetings Council and its advisory entities will be 2. Roll Call webinar only. 3. Executive Director’s Report Day 1—Monday, June 21, 2021 Council address: Pacific Fishery 4. Approve Agenda Scientific and Statistical Committee Management Council, 7700 NE B. Open Comment Period Groundfish Subcommittee—8 a.m. Ambassador Place, Suite 101, Portland, 1. Comments on Non-Agenda Items Budget Committee—10 a.m. OR 97220. Instructions for attending the C. Administrative Matters Legislative Committee—1 p.m. meeting via live stream broadcast are 1. Council Coordination Committee Day 2—Tuesday, June 22, 2021 given under SUPPLEMENTARY 2. Standardized Bycatch Reporting INFORMATION, below. Methodology—Scoping Habitat Committee—8 a.m. FOR FURTHER INFORMATION CONTACT: Mr. 3. Update on Executive Order 14008 Highly Migratory Species Advisory Chuck Tracy, Executive Director; 4. Marine Planning Subpanel—8 a.m. telephone: (503) 820–2415 or (866) 806– 5. Regional Operating Agreement Highly Migratory Species Management 7204 toll-free; or access the Pacific 6. Fiscal Matters Team—8 a.m. Council website, www.pcouncil.org for 7. Legislative Matters Salmon Advisory Subpanel—8 a.m. Salmon Technical Team—8 a.m. the proposed agenda and meeting 8. Approval of Council Meeting Scientific and Statistical Committee briefing materials. Records Groundfish Subcommittee—8 a.m. SUPPLEMENTARY INFORMATION: The June 9. Membership Appointments and 24–26 and 28–30, 2021 meeting of the Council Operating Procedures Day 3—Wednesday, June 23, 2021 Pacific Council will be streamed live on 10. Future Council Meeting Agenda Habitat Committee—8 a.m. the internet. The broadcasts begin and Workload Planning Coastal Pelagic Species Advisory initially at 9 a.m. PDT Thursday, June D. Habitat Issues Subpanel—8 a.m. 24, 2021 and continue at 8 a.m. 1. Current Habitat Issues Coastal Pelagic Species Management Saturday, June 26 and Monday, June 28 E. Salmon Management Team—8 a.m. daily through Wednesday, June 30. No 1. Southern Oregon/Northern Enforcement Consultants—8 a.m. meetings are scheduled for Sunday, California Coast Coho Endangered Groundfish Advisory Subpanel—8 a.m. June 27, 2021. Broadcasts end when Species Act (ESA) Consultation Groundfish Management Team—8 a.m. business for the day is complete. Only F. Highly Migratory Species Highly Migratory Species Advisory the audio portion and presentations Management Subpanel—8 a.m. displayed on the screen at the Pacific 1. National Marine Fisheries Service Highly Migratory Species Management Council meeting will be broadcast. The Report Team—8 a.m.
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Scientific and Statistical Committee—8 before the Pacific Council for www.regulations.gov or by email to a.m. discussion, those issues may not be the [email protected]. Written subject of formal Council action during comments also may be submitted by Day 4—Thursday, June 24, 2021 this meeting. Council action will be mail to the National California State Delegation—7 a.m. restricted to those issues specifically Telecommunications and Information Oregon State Delegation—7 a.m. listed in this notice and any issues Administration, U.S. Department of Washington State Delegation—7 a.m. arising after publication of this notice Commerce, 1401 Constitution Avenue Coastal Pelagic Species Advisory that require emergency action under NW, Room 4725, Attn: Evelyn L. Subpanel—8 a.m. section 305(c) of the Magnuson-Stevens Remaley, Acting NTIA Administrator, Coastal Pelagic Species Management Fishery Conservation and Management Washington, DC 20230. For more Team—8 a.m. Act, provided the public has been detailed instructions about submitting Groundfish Advisory Subpanel—8 a.m. notified of the Pacific Council’s intent to comments, see the ‘‘Instructions for Groundfish Management Team—8 a.m. take final action to address the Commenters’’ section at the end of this Highly Migratory Species Advisory emergency. Notice. Subpanel—8 a.m. FOR FURTHER INFORMATION CONTACT: Special Accommodations Highly Migratory Species Management Allan Friedman, National Team—8 a.m. Requests for sign language Telecommunications and Information Scientific and Statistical Committee—8 interpretation or other auxiliary aids Administration, U.S. Department of a.m. should be directed to Mr. Kris Commerce, 1401 Constitution Avenue Enforcement Consultants—As Necessary Kleinschmidt at (503) 820–2412 at least NW, Room 4725, Washington, DC Day 5—Friday, June 25, 2021 10 business days prior to the meeting 20230; telephone: (202) 482–4281; date. email: [email protected]. Please direct California State Delegation—7 a.m. Authority: 16 U.S.C. 1801 et seq. media inquiries to NTIA’s Office of Oregon State Delegation—7 a.m. Public Affairs: (202) 482–7002; email: Washington State Delegation—7 a.m. Dated: May 27, 2021. [email protected]. Coastal Pelagic Species Advisory Tracey L. Thompson, SUPPLEMENTARY INFORMATION: Subpanel—8 a.m. Acting Deputy Director, Office of Sustainable Coastal Pelagic Species Management Fisheries, National Marine Fisheries Service. Background Team—8 a.m. [FR Doc. 2021–11547 Filed 6–1–21; 8:45 am] On May 12, 2021, the President issued Groundfish Advisory Subpanel—8 a.m. BILLING CODE 3510–22–P Executive Order 14028, ‘‘Improving the Groundfish Management Team—8 a.m. Nation’s Cybersecurity.’’ 1 An initial Highly Migratory Species Advisory step towards the Executive Order’s goal Subpanel—8 a.m. DEPARTMENT OF COMMERCE of ‘‘enhancing software supply chain Highly Migratory Species Management security’’ is transparency. As the Order Team—8 a.m. National Telecommunications and itself notes, ‘‘the trust we place in our Enforcement Consultants—As Necessary Information Administration digital infrastructure should be Day 6—Saturday, June 26, 2021 [Docket No. 210527–0117] proportional to how trustworthy and transparent that infrastructure is, and to California State Delegation—7 a.m. RIN 0660–XC051 the consequences we will incur if that Oregon State Delegation—7 a.m. trust is misplaced.’’ An SBOM advances Washington State Delegation—7 a.m. Software Bill of Materials Elements and Considerations transparency in the software supply Groundfish Advisory Subpanel—8 a.m. chain, similar to a ‘‘list of ingredients.’’ Groundfish Management Team—8 a.m. AGENCY: National Telecommunications NTIA is directed to publish a list of Enforcement Consultants—As Necessary and Information Administration, U.S. ‘‘minimum elements for an SBOM.’’ * No Meetings Scheduled for Sunday, Department of Commerce. NTIA has played a leadership role in June 27, 2021 ACTION: Notice, request for public advocating for SBOM, convening Day 7—Monday, June 28, 2021 comment. experts from across the software world and leading discussions around the California State Delegation—7 a.m. SUMMARY: The Executive Order on ideas of software supply chain Oregon State Delegation—7 a.m. Improving the Nation’s Cybersecurity transparency.2 The goal of this Request Washington State Delegation—7 a.m. directs the Department of Commerce, in for Comments is to seek input and Groundfish Advisory Subpanel—8 a.m. coordination with the National feedback on NTIA’s approach to Groundfish Management Team—8 a.m. Telecommunications and Information developing and publishing the Enforcement Consultants—As Necessary Administration (NTIA), to publish the minimum elements of an SBOM. NTIA Day 8—Tuesday, June 29, 2021 minimum elements for a Software Bill is committed to being open to further of Materials (SBOM). Through this additions, corrections, deletions, or California State Delegation—7 a.m. Notice, following from the Executive other changes, particularly when Oregon State Delegation—7 a.m. Order, NTIA is requesting comments on suggestions are well supported with Washington State Delegation—7 a.m. the minimum elements for an SBOM, Groundfish Advisory Subpanel—8 a.m. and what other factors should be 1 Exec. Order No. 14,028 of May 12, 2021, 86 FR Groundfish Management Team—8 a.m. considered in the request, production, 26,633 (May 17, 2021). Enforcement Consultants—As Necessary 2 See David J. Redl, NTIA Launches Initiative to distribution, and consumption of Improve Software Component Transparency, Nat’l Day 9—Wednesday, June 30, 2021 SBOMs. Telecomm. & Info. Admin. (June 6, 2018), https:// www.ntia.doc.gov/blog/2018/ntia-launches- California State Delegation—7 a.m. DATES: Comments are due on or before initiative-improve-software-component- Oregon State Delegation—7 a.m. June 17, 2021. transparency; Allan Friedman, Dir., Cybersecurity, Washington State Delegation—7 a.m. ADDRESSES: Written comments may be Nat’l Telecomm. & Info. Admin., Transparency in the Software Supply Chain: Making SBOM a Although non-emergency issues not submitted on this document identified Reality, Address at Black Hat USA 2019 Conference contained in this agenda may come by NTIA–2021–0001 through (Aug. 7, 2019).
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documents, operational evidence, and The Executive Order also defines diverse software ecosystems, sectors, support from broad-based SBOM in functional terms, framing its and markets.’’ 7 The challenge is that constituencies in the software value in terms of use cases. It notes different technical communities and ecosystem. distinct but overlapping benefits that organizations have different approaches Since 2018, NTIA has coordinated an accrue to the organization that makes to determining software identity. open and transparent multistakeholder the software (‘‘developers’’), the Operational considerations. SBOM is process on software component organization that chooses or buys more than a set of data fields. Elements transparency, providing a forum in software, and those that operate of SBOM include a set of operational which a diverse and evolving set of software. Many of these use case and business decisions and actions that experts and interested parties have been benefits center around tracking known establish the practice of requesting, able to weigh in, share their leadership or newly identified vulnerabilities, but generating, sharing, and consuming and respective visions, unpack the SBOM can also support use cases SBOMs. This includes: complex challenges of software supply around license management and • Frequency. Operational chain, and propose various solutions.3 software quality/efficiency, and can lay considerations touch on when and The idea of an SBOM is not new. Its the foundation to detect software supply where the SBOM data is generated and roots lie in the concepts developed by chain attacks. These benefits should tracked. SBOM data could be created noted American engineer and serve as a lodestar for designing and and stored in the repository of the management consultant W. Edward publishing the minimum elements of an source. For built software, it can be Deming to build post-war industrial SBOM that can be applied across the tracked and assembled at the time of supply chain leadership, and over the diverse software ecosystem. build. A new build or an update to the underlying source should, in turn, last decade an SBOM has come to be Potential Elements for an SBOM considered vital to security by notable create a new SBOM. security experts.4 By providing a forum NTIA proposes a definition of the • Depth. The ideal SBOM should for SBOM discussions, NTIA has helped ‘‘minimum elements’’ of an SBOM that track dependencies, dependencies of the community identify common builds on three broad, inter-related those dependencies, and so on down to themes, coalesce around standards, and areas: Data fields, operational the complete graph of the assembled emphasize interoperability. These considerations, and support for software. Complete depth may not discussions have led to the automation. Focusing on these three always be feasible, especially as SBOM documentation of existing tools, elements will enable an evolving practices are still novel in some products, and projects, and have helped approach to software transparency, and communities. When an SBOM cannot drive further experimentation and serve to ensure that subsequent efforts convey the full set of transitive implementation. With an emphasis on will incorporate more detail or technical dependencies, it should explicitly the practice of SBOM generation and advances. The information below is acknowledge the ‘‘known unknowns,’’ use, NTIA has sought to facilitate preliminary, and the ultimate list so that the SBOM consumer can easily ‘‘proof-of-concept’’ exercises in specific published by NTIA will be revised determine the difference between a communities and sectors.5 NTIA has based on public input. component with no further also worked across the federal Data fields. To understand the third- dependencies and a component with government to share ideas about SBOM, party components that make up unknown or partial dependencies. • seek feedback and engagement from software, certain data about each of Delivery. SBOMs should be experts in the civilian and national those components should be tracked. available in a timely fashion to those security community, and expand This ‘‘baseline component information’’ who need them and have proper access 6 general awareness of SBOM. includes: permissions and roles in place. Sharing • Supplier name SBOM data down the supply chain can What is an SBOM? • Component name be thought of as comprising two parts: • The Executive Order defines an Version of the component How the existence and availability of • Cryptograph hash of the component the SBOM is made known SBOM as ‘‘a formal record containing • the details and supply chain Any other unique identifier (advertisement or discovery) and how • Dependency relationship relationships of various components • the SBOM is retrieved by or transmitted Author of the SBOM data to those who have the appropriate used in building software.’’ It refers to Some of these data fields could be permissions (access).8 Similar to other what the software assurance expanded. For example, the areas of software assurance, there will organization SAFECode calls ‘‘third ‘‘dependency relationship’’ generally not be a one-size-fits-all approach. party components.’’ Software is made refers to the idea that one component is Anyone offering SBOMs must have and used by a wide range of included in another component, but some mechanism to deliver them, but organizations, but this diversity makes a could be expanded to also include this can ride on existing mechanisms. single model for SBOM difficult. There referencing standards, which tools were SBOM delivery can reflect the nature of is no one-size-fits-all approach to used, or how software was compiled or the software as well: Executables that providing transparency for software built. Other data fields may need more live on endpoints can store the SBOM assurance. clarity, including data fields for data on disk with the compiled code, component and supplier name. As one 3 whereas embedded systems or online NTIA, Multistakeholder Process on Promoting SBOM document notes, ‘‘[c]omponent Software Component Transparency, Notice of Open identification is fundamental to SBOM Meeting, 83 FR 26,434 (June 7, 2018). 7 Framing Working Group, Nat’l Telecomm. & 4 See Seth Carmody et al., Building Resilient and needs to scale globally across Info. Admin., Software Identification Challenges Medical Technology Supply Chains with a Software and Guidance (2021), https://www.ntia.gov/files/ Bill of Materials, 4 npj Digit. Med., at 1, 1–2 (2021), 6 See generally Framing Working Grp., Nat’l ntia/publications/ntia_sbom_software_identity- https://doi.org/10.1038/s41746-021-00403-w. Telecomm. & Info. Admin., Framing Software 2021mar30.pdf. 5 See Susan Miller, Protecting the Supply Chain Component Transparency (2019), https:// 8 Framing Working Grp., Nat’l Telecomm. & Info. with a Software Bill of Materials, GCN (Feb. 22, www.ntia.gov/files/ntia/publications/framingsbom_ Admin., Sharing and Exchanging SBOMs (2021), 2021), https://gcn.com/articles/2021/02/22/sbom- 20191112.pdf (providing further information on https://www.ntia.gov/files/ntia/publications/ntia_ supply-chain-security.aspx. baseline components). sbom_sharing_exchanging_sboms-10feb2021.pdf.
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services can have pointers to SBOM management, cybersecurity, and public options may impose higher costs on data stored online. policy. We seek comment on how these either SBOM producers or consumers. Automation support. A key element issues described below should be h. Depth. As noted above, while ideal for SBOM to scale across the software considered in defining SBOM elements SBOMs have the complete graph of the ecosystem, particularly across today and in the future. assembled software, not every software organizational boundaries, is support for a. Software Identity: There is no producer will be able or ready to share automation, including automatic single namespace to easily identify and the entire graph. generation and machine-readability. As name every software component. The i. Vulnerabilities. Many of the use the Executive Order notes, SBOMs challenge is not the lack of standards, cases around SBOMs focus on known should be machine-readable and should but multiple standards and practices in vulnerabilities. Some build on this by allow ‘‘for greater benefits through different communities. including vulnerability data in the automation and tool integration.’’ b. Software-as-a-Service and online SBOM itself. Others note that the Manual entry or distribution with services: While current, cloud-based existence and status of vulnerabilities spreadsheets does not scale, especially software has the advantage of more can change over time, and there is no across organizations. modern tool chains, the use cases for general guarantee or signal about The SBOM community has identified SBOM may be different for software that whether the SBOM data is up-to-date three existing data standards (formats) is not running on customer premises or relative to all relevant and applicable that can convey the data fields and be maintained by the customer. vulnerability data sources. used to support the operations c. Legacy and binary-only software: j. Risk Management. Not all described above: SPDX,9 CycloneDX,10 Older software often has greater risks, vulnerabilities in software code put and SWID tags.11 Experts in these especially if it is not maintained. In operators or users at real risk from formats have mapped between them to some cases, the source may not even be software built using those vulnerable create interoperability for the baseline obtainable, with only the object code components, as the risk could be described above. Because these formats available for SBOM generation. mitigated elsewhere or deemed to be already are subject to public input and d. Integrity and authenticity: An negligible. One approach to managing translation tools exist, they serve as SBOM consumer may be concerned this might be to communicate that logical starting points for sharing basic about verifying the source of the SBOM software is ‘‘not affected’’ by a specific data.12 data and confirming that it was not vulnerability through a Vulnerability In addition to the three SBOM tampered with. Some existing measures Exploitability eXchange (or ‘‘VEX’’),14 formats, the need for automation defines for integrity and authenticity of both but other solutions may exist. how some of the fields might be software and metadata can be leveraged. 4. Flexibility of implementation and implemented better. For instance, e. Threat model: While many potential requirements. If there are machine-scale detection of anticipated use cases may rely on the legitimate reasons why the above vulnerabilities requires mapping SBOM as an authoritative reference elements might be difficult to adopt or component identity fields to existing when evaluating external information use for certain technologies, industries, vulnerability databases. (such as vulnerability reports), other use or communities, how might the goals cases may rely on the SBOM as a Request for Comment and use cases described above be foundation in detecting more fulfilled through alternate means? What The discussion above lays out the sophisticated supply chain attacks. accommodations and alternate collected data points and experience These attacks could include approaches can deliver benefits while from experts and practitioners in SBOM, compromising the integrity of not only allowing for flexibility? including existing practices and novel the systems used to build the software Instructions for Commenters: NTIA proof-of-concept work. To inform, component, but also the systems used to invites comment on the full range of validate, and update NTIA’s create the SBOM or even the SBOM issues that may be presented in this understanding of SBOM, NTIA seeks itself. How can SBOM position itself to Notice, including issues that are not comment on the following questions: support the detection of internal specifically raised in the above 1. Are the elements described above, compromise? How can these more questions. Commenters are encouraged including data fields, operational advanced data collection and to address any or all of the above considerations, and support for management efforts best be integrated questions. Comments that contain automation, sufficient? What other into the basic SBOM structure? What references to studies, research, and elements should be considered and further costs and complexities would other empirical data that are not widely why? this impose? available should include copies of the 2. Are there additional use cases that f. High assurance use cases: Some referenced materials with the submitted can further inform the elements of SBOM use cases require additional data comments. Comments submitted by SBOM? about aspects of the software email should be machine-readable and 3. SBOM creation and use touches on development and build environment, should not be copy-protected. a number of related areas in IT including those aspects that are Responders should include the name of 13 enumerated in Executive Order 14028. the person or organization filing the 9 See also SPDX, https://spdx.dev/ (last visited How can SBOM data be integrated with comment, which will facilitate agency May 18, 2021). this additional data in a modular 10 See also CycloneDX, https://cyclonedx.org/ follow up for clarifications as necessary, (last visited May 18, 2021). fashion? as well as a page number on each page 11 See David Waltermire et al., Guidelines for the g. Delivery. As noted above, multiple of their submissions. All comments Creation of Interoperable Software Identification mechanisms exist to aid in SBOM received are a part of the public record (SWID) Tags (2016) (Nat’l Inst. of Standards & Tech. discovery, as well as to enable access to and will be posted on regulations.gov Internal Rep. 8060), http://dx.doi.org/10.6028/ SBOMs. Further mechanisms and NIST.IR.8060 (SWID tags are defined by ISO/IEC 19770–2:2015). standards may be needed, yet too many 14 David Braue, Software ‘Bill of Materials’ To 12 See, e.g., SwiftBOM—SBOM Generator for PoC Become Standard?, Info. Age (Oct. 22, 2020, 11:34 and Demos, https://democert.org/sbom/ (last visited 13 Exec. Order No.14028 § 4(e)(i)–(x), 86 FR a.m.), https://ia.acs.org.au/article/2020/software- May 18, 2021). 26633, 26638–39 (May 12, 2021). bill-of-materials-to-become-standard.html.
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and the NTIA website, https:// also file test submissions through Patent document, otherwise referred to as the www.ntia.gov/, without change. All Center training mode to practice filing source or evidentiary copy of the personal identifying information (for in DOCX. In addition, we will be application. This change applies to all example, name, address) voluntarily offering listening sessions to gather patent documents submitted in DOCX submitted by the commenter may be feedback and suggestions to further format, including DOCX submissions publicly accessible. Do not submit improve DOCX features. made prior to this notice. confidential business information or DATES: Effective date: June 2, 2021. The source or evidentiary copy of the otherwise sensitive or protected FOR FURTHER INFORMATION CONTACT: application is the version submitted to information. Mark O. Polutta, Senior Legal Advisor, the USPTO by the applicant in one of Dated: May 27, 2021. 571–272–7709, or Eugenia A. Jones, the following formats: Paper, DOCX, or PDF when not accompanied by a DOCX Kathy D. Smith, Senior Legal Advisor, 571–272–7727, of the Office of Patent Legal version of the same. Applicants should Chief Counsel, National Telecommunications not submit PDF versions they created and Information Administration. Administration, Office of the Deputy when filing an application in DOCX, as Commissioner for Patents. [FR Doc. 2021–11592 Filed 6–1–21; 8:45 am] they are unnecessary. If the applicant BILLING CODE 3510–60–P For technical questions related to submitting documents in DOCX format, submits documents in DOCX along with please contact the Patent Electronic PDF versions they created (not the auto- DEPARTMENT OF COMMERCE Business Center (EBC) at 1–866–217– generated PDFs created by the USPTO), 9197 (toll-free), 571–272–4100 (local), or then the DOCX version will still be considered the source or evidentiary Patent and Trademark Office [email protected]. The EBC is open from 6 copy, and the applicant will be required a.m. to midnight, ET, Monday through [Docket No.: PTO–P–2021–0010] to pay the non-DOCX surcharge fee. Friday. Applicants can rely on the DOCX Submitting Patent Applications in SUPPLEMENTARY INFORMATION: The version as the source or evidentiary Structured Text Format and Reliance USPTO is in the process of transitioning copy in order to make any corrections on the Text Version as the Source or to a system that supports submitting to the record when any discrepancies Evidentiary Copy new patent applications in structured are identified between the source or text, specifically DOCX format. AGENCY: United States Patent and evidentiary copy and the documents as Trademark Office, Department of Application documents submitted in converted by the USPTO. Accordingly, Commerce. DOCX format will facilitate the during the filing process, applicants will examination and publication processes. ACTION: Notice. be advised to review the DOCX files This notice provides information on before submission rather than reviewing SUMMARY: The United States Patent and structured text filing. Specifically, the the USPTO-generated PDF version, as Trademark Office (USPTO) is in the USPTO now considers the DOCX set forth in the August 3, 2020, final process of transitioning to a system that documents filed by applicants to be the rule. supports submitting new patent authoritative document, otherwise However, applicants are advised to applications in structured text, referred to as the source or evidentiary check the USPTO-generated versions as specifically DOCX format. Filing in copy of the application, for purposes of soon as practicable for any structured text allows applicants to determining the content of the discrepancies or errors. Any submit their specifications, claims, and application as originally filed, should a discrepancies or errors that occur as a abstracts in text-based format, thereby discrepancy be discovered. This notice result of filing an application in DOCX eliminating the need for applicants to does not require patent applicants to format should be promptly brought to convert applications into a PDF for make any changes to their practices. the attention of the USPTO. Applicants filing. It also provides a flexible format Currently, applicants may should initially contact the Patent EBC with no template constraints and electronically file an application either for investigation at 1–866–217–9197 improves data quality by supporting by submitting PDF files or by submitting (toll-free), 571–272–4100 (local), or original formats for chemical formulas, DOCX files. If an applicant submits [email protected]. Depending on the mathematical equations, and tables. The DOCX files, the USPTO uses the DOCX situation, applicants may need to file a USPTO previously stated that for files to generate PDF files prior to the petition under 37 CFR 1.181 in order to applications filed in DOCX, the actual filing of the application. The have the issue reviewed and addressed. authoritative document would be the USPTO published a final rule on setting This is consistent with current USPTO accompanying PDF that the USPTO and adjusting patent fees on August 3, procedures for documents filed in systems generate from the DOCX 2020. See Setting and Adjusting Patent patent applications. document. In response to public Fees During Fiscal Year 2020, 85 FR In this regard, the USPTO has a feedback, however, the USPTO now 46932 (Aug. 3, 2020). In addition to records retention schedule for considers the DOCX document filed by establishing a fee for applications not documents it receives, including new the applicant to be the authoritative submitted in a DOCX format, the patent applications and correspondence document. Accordingly, an applicant response to comment 54 in the final rule filed in patent applications. For who files or has filed an application in stated that for applications filed in example, applications filed in paper via DOCX may rely on that version as the DOCX, the authoritative document will mail or hand-delivery are scanned into source or evidentiary copy of the be the accompanying PDF that the the image file wrapper (IFW) or the application to make any corrections to USPTO systems generate from the Supplemental Complex Repository for the documents in the application file. DOCX document. See id. at 46957. Examiners (SCORE), as appropriate. In The USPTO will be hosting DOCX In response to public feedback, the 2011, the USPTO established a one-year training sessions to provide more USPTO has changed what will be the retention policy for patent-related information, demonstrate how to file authoritative document. The USPTO is papers scanned into the IFW or SCORE. and retrieve DOCX files in Patent informing applicants that it now See Establishment of a One-Year Center, EFS–Web, and PAIR, and considers the DOCX documents filed by Retention Period for Patent-Related answer any questions. Applicants can applicants to be the authoritative Papers That Have Been Scanned Into the
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Image File Wrapper System or the paper copies of these documents are the the ‘‘eFiling’’ link at http:// Supplemental Complex Repository for source or evidentiary copies. www.ferc.gov. Persons unable to file electronically may mail similar Examiners, 77 FR 3745 (Jan. 25, 2012). Andrew Hirshfeld, After the expiration of the one-year pleadings to the Federal Energy Commissioner for Patents, Performing the Regulatory Commission, 888 First Street period, the USPTO disposes of the Functions and Duties of the Under Secretary paper unless the applicant, patent of Commerce for Intellectual Property and NE, Washington, DC 20426. Hand owner, or reexamination party timely Director of the United States Patent and delivered submissions in docketed files a bona fide request to correct the Trademark Office. proceedings should be delivered to electronic record of the paper in IFW or [FR Doc. 2021–11256 Filed 6–1–21; 8:45 am] Health and Human Services, 12225 Wilkins Avenue, Rockville, Maryland SCORE. DOCX submissions will be BILLING CODE 3510–16–P treated similarly. Therefore, the 20852. In addition to publishing the full text procedure to correct any discrepancies of this document in the Federal or errors that occur as a result of filing DEPARTMENT OF ENERGY Register, the Commission provides all an application in DOCX format will interested persons an opportunity to align with the established procedure for Federal Energy Regulatory Commission view and/or print the contents of this an applicant, patent owner, or document via the internet through the reexamination party to request [Docket No. RP21–838–000] Commission’s Home Page (http:// corrections to the electronic record www.ferc.gov) using the ‘‘eLibrary’’ link. when there is an error caused by the Occidental Permian Ltd., OXY USA Enter the docket number excluding the USPTO in scanning papers into the WTP LP v. El Paso Natural Gas last three digits in the docket number IFW. Company, LLC; Notice of Complaint field to access the document. At this Applicants should promptly review Take notice that on May 24, 2021, time, the Commission has suspended the electronic record of an application pursuant to Section 5 of the Natural Gas access to the Commission’s Public and file any request to correct the Act 1 and Rule 206 of the Federal Energy Reference Room, due to the electronic record based on the source or Regulatory Commission’s (Commission) proclamation declaring a National evidentiary copy as soon as possible Rules of Practice and Procedure, 18 CFR Emergency concerning the Novel after the document has been submitted 385.206 (2021), Occidental Permian Ltd. Coronavirus Disease (COVID–19), issued by the President on March 13, 2020. For to the USPTO. Applicants should not and OXY USA WTP LP (Complainants) assistance, contact the Federal Energy expect to have a request to correct the filed a formal complaint against El Paso Regulatory Commission at electronic record granted if the request Natural Gas Company, LLC [email protected], or call is based on the source or evidentiary (Respondent), alleging that the Respondent’s failure to waive and toll-free, (886) 208–3676 or TYY, (202) copy and it is filed more than one year 502–8659. after submission of the document. imposition of Critical Operating Condition charges and penalties for the Comment Date: 5:00 p.m. Eastern Documents submitted by applicants in Time on June 14, 2021. PDF or DOCX in patent applications period February 15, 2021 through Dated: May 26, 2021. will be treated in a similar manner to February 17, 2021 is unjust and unreasonable, unreasonably punitive, Debbie-Anne A. Reese, papers that have been scanned into the and inconsistent with Commission IFW in that they may be disposed of Deputy Secretary. policy and precedent, all as more fully after a period of time if they are the [FR Doc. 2021–11577 Filed 6–1–21; 8:45 am] explained in its complaint. BILLING CODE 6717–01–P source or evidentiary copy. The Complainants certify that copies The USPTO’s procedures regarding of the complaint were served on the national security classified documents contacts listed for Respondent in the DEPARTMENT OF ENERGY are unaffected by this notice. National Commission’s list of Corporate Officials. security classified documents must be Any person desiring to intervene or to Federal Energy Regulatory filed in the USPTO in paper format via protest this filing must file in Commission hand-delivery to Licensing and Review accordance with Rules 211 and 214 of Combined Notice of Filings or by mail in compliance with 37 CFR the Commission’s Rules of Practice and 5.1(a) and Executive Order 13526 of Procedure (18 CFR 385.211, 385.214). Take notice that the Commission has December 29, 2009, or in electronic Protests will be considered by the received the following Natural Gas format via the Department of Defense Commission in determining the Pipeline Rate and Refund Report filings: Secret internet Protocol Router Network appropriate action to be taken, but will Docket Number: PR21–47–000. (SIPRNET). See section 115 of the not serve to make protestants parties to Applicants: Columbia Gas of Manual of Patent Examining Procedure the proceeding. Any person wishing to Maryland, Inc. (MPEP, Ninth Edition, Revision become a party must file a notice of Description: Tariff filing per intervention or motion to intervene, as 10.2019). National security classified 284.123(b), (e)/: CMD Rates Effective appropriate. The Respondent’s answer documents filed electronically via May 1 2021 to be effective 5/1/2021. and all interventions, or protests must SIPRNET are maintained at the USPTO Filed Date: 5/24/2021. be filed on or before the comment date. Accession Number: 202105245095. in paper form; an electronic record of The Respondent’s answer, motions to Comments/Protests Due: 5 p.m. ET 6/ such documents is not maintained. intervene, and protests must be served 14/2021. Thus, all national security classified on the Complainant. Docket Number: PR21–48–000. documents filed with the USPTO are The Commission strongly encourages Applicants: Columbia Gas of Ohio, maintained only in paper form, and the electronic filings of comments, protests Inc. and interventions in lieu of paper using Description: Tariff filing per 284.123(b), (e)/: COH Rates Effective 1 15 U.S.C. 717d. April 29 2021 to be effective 4/29/2021.
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Filed Date: 5/24/2021. service, and qualifying facilities filings 20426, (202) 502–6137, Accession Number: 202105245145. can be found at: http://www.ferc.gov/ Meghan.O’[email protected]. Comments/Protests Due: 5 p.m. ET 6/ docs-filing/efiling/filing-req.pdf. For Dated: May 26, 2021. 14/2021. other information, call (866) 208–3676 Kimberly D. Bose, (toll free). For TTY, call (202) 502–8659. Docket Numbers: RP21–821–001. Secretary. Applicants: Venice Gathering System, Dated: May 26, 2021. [FR Doc. 2021–11556 Filed 6–1–21; 8:45 am] L.L.C. Debbie-Anne A. Reese, BILLING CODE 6717–01–P Description: Tariff Amendment: Errata Deputy Secretary. to be effective 7/1/2021. [FR Doc. 2021–11580 Filed 6–1–21; 8:45 am] Filed Date: 5/25/21. BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Accession Number: 20210525–5019. Comments Due: 5 p.m. ET 6/7/21. Federal Energy Regulatory Docket Numbers: RP21–839–000. DEPARTMENT OF ENERGY Commission Applicants: Texas Eastern [Project No. 5411–004] Transmission, LP. Federal Energy Regulatory Description: § 4(d) Rate Filing: Commission Port Townsend Paper Corporation; Negotiated Rates—Gulfport Amendment Notice of Application for Surrender of [Docket No. AD20–9–000] 911377 to be effective 5/1/2021. Conduit Exemption, Soliciting Filed Date: 5/25/21. Hybrid Resources; Notice Inviting Comments, Motions To Intervene, and Accession Number: 20210525–5000. Comments Protests Comments Due: 5 p.m. ET 6/7/21. Docket Numbers: RP21–840–000. On January 19, 2021, the Federal Take notice that the following Applicants: Eastern Gas Transmission Energy Regulatory Commission hydroelectric application has been filed and Storage, Inc. (Commission) directed each Regional with the Commission and is available Description: § 4(d) Rate Filing: Transmission Organization and for public inspection: EGTS—West Loop Project (CP19–26) Independent System Operator (RTO/ a. Application Type: Application for Transportation Service & Negotitated ISO) to submit informational reports by surrender of conduit exemption. Rate to be effective 7/1/2021. July 19, 2021 regarding hybrid resource b. Project No.: P–5411–004. Filed Date: 5/25/21. issues, with public comments due 30 c. Date Filed: October 26, 2018. Accession Number: 20210525–5029. days thereafter (August 18, 2021).1 d. Applicant: Port Townsend Paper Comments Due: 5 p.m. ET 6/7/21. Concurrently with the issuance of this Corporation. e. Name of Project: Port Townsend Docket Numbers: RP21–841–000. notice, the Commission is issuing a staff Mill Hydro-Turbine Generator Project. Applicants: Carolina Gas white paper on Hybrid Resources. The f. Location: The project is located on Transmission, LLC. white paper discusses the Hybrid the Port Townsend Mill water supply Description: § 4(d) Rate Filing: CGT— Resources technical conference held by line in Jefferson County, Washington. Fuel Waiver to be effective 6/24/2021. the Commission in July 2020 in this proceeding, as well as the information g. Filed Pursuant to: Public Utility Filed Date: 5/25/21. Regulatory Policies Act of 1978, 16 Accession Number: 20210525–5053. learned in post-technical conference 2 U.S.C. 2705, 2708. Comments Due: 5 p.m. ET 6/7/21. comments. Pursuant to this notice, all interested persons are invited to submit h. Exemptee Contact: Michael Craft, Docket Numbers: RP21–842–000. comments on the white paper, including General Manager, Port Townsend Paper Applicants: El Paso Natural Gas information pertaining to non-RTO/ISO Corporation, 100 Mill Hill Road, Port Company, L.L.C. regions. We encourage commenters to Townsend, WA 98368; Telephone: (360) Description: § 4(d) Rate Filing: jointly respond to both the white paper 379–2065; Email: Michael.craft@ Negotiated Rate Agreement Update and RTO/ISO informational reports ptpc.com. (Pioneer Jul–Sep 2021) to be effective where applicable to avoid duplicate i. FERC Contact: Marybeth Gay, (202) 7/1/2021. comments. Comments on both the RTO/ 502–6125, [email protected]. Filed Date: 5/25/21. ISO informational reports and the white j. Deadline for Filing Comments, Accession Number: 20210525–5078. paper are due August 18, 2021, 30 days Motions To Intervene, and Protests: June Comments Due: 5 p.m. ET 6/7/21. after the RTO/ISO hybrid resource 25, 2021. The filings are accessible in the informational reports are filed. The Commission strongly encourages Commission’s eLibrary system (https:// For more information about this electronic filing. Please file comments, elibrary.ferc.gov/idmws/search/ Notice, please contact: motions to intervene, and protests using fercgensearch.asp) by querying the Kaitlin Johnson (Technical Information), the Commission’s eFiling system at docket number. Office of Energy Policy and http://www.ferc.gov/docs-filing/ Any person desiring to intervene or Innovation, Federal Energy Regulatory efiling.asp. Commenters can submit protest in any of the above proceedings Commission, 888 First Street NE, brief comments up to 6,000 characters, must file in accordance with Rules 211 Washington, DC 20426, (202) 502– without prior registration, using the and 214 of the Commission’s 8542, [email protected]. eComment system at http:// Regulations (18 CFR 385.211 and Meghan O’Brien (Legal Information), www.ferc.gov/docs-filing/ 385.214) on or before 5:00 p.m. Eastern Office of the General Counsel, Federal ecomment.asp. You must include your time on the specified comment date. Energy Regulatory Commission, 888 name and contact information at the end Protests may be considered, but First Street NE, Washington, DC of your comments. For assistance, intervention is necessary to become a please contact FERC Online Support at party to the proceeding. [email protected], (866) 1 Hybrid Resources, 174 FERC ¶ 61,034 (2021). eFiling is encouraged. More detailed 2 See Hybrid Resources, Notice Inviting Post- 208–3676 (toll free), or (202) 502–8659 information relating to filing Technical Conference Comments, Docket No. (TTY). In lieu of electronic filing, you requirements, interventions, protests, AD20–9–000 (Aug. 10, 2020). may submit a paper copy. Submissions
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sent via the U.S. Postal Service must be accordance with the Commission’s • Electronic Filing: Documents must addressed to: Kimberly D. Bose, Rules may become a party to the be filed in acceptable native Secretary, Federal Energy Regulatory proceeding. Any comments, protests, or applications and print-to-PDF, but not Commission, 888 First Street NE, Room motions to intervene must be received in scanned or picture format. 1A, Washington, DC 20426. on or before the specified comment date • For those unable to file Submissions sent via any other carrier for the particular application. electronically, comments may be filed must be addressed to: Kimberly D. Bose, o. Filing and Service of Documents: by USPS mail or by hand (including Secretary, Federal Energy Regulatory Any filing must (1) bear in all capital courier) delivery: Commission, 12225 Wilkins Avenue, letters the title ‘‘COMMENTS’’, Æ Mail via U.S. Postal Service Only: Rockville, Maryland 20852. The first ‘‘PROTEST’’, or ‘‘MOTION TO Addressed to: Federal Energy page of any filing should include docket INTERVENE’’ as applicable; (2) set forth Regulatory Commission, Secretary of the number P–5411–004. Comments in the heading the name of the applicant Commission, 888 First Street NE, emailed to Commission staff are not and the project number of the Washington, DC 20426. considered part of the Commission application to which the filing Æ Hand (Including Courier) Delivery: record. responds; (3) furnish the name, address, Deliver to: Federal Energy Regulatory The Commission’s Rules of Practice and telephone number of the person Commission, 12225 Wilkins Avenue, and Procedure require all intervenors commenting, protesting or intervening; Rockville, MD 20852. filing documents with the Commission and (4) otherwise comply with the Instructions: All submissions must be to serve a copy of that document on requirements of 18 CFR 385.2001 formatted and filed in accordance with each person whose name appears on the through 385.2005. All comments, submission guidelines at: http:// official service list for the project. motions to intervene, or protests must www.ferc.gov. For user assistance, Further, if an intervenor files comments set forth their evidentiary basis. Any contact FERC Online Support by email or documents with the Commission filing made by an intervenor must be at [email protected], or by relating to the merits of an issue that accompanied by proof of service on all phone at (866) 208–3676 (toll-free). may affect the responsibilities of a persons listed in the service list Docket: Users interested in receiving particular resource agency, they must prepared by the Commission in this automatic notification of activity in this also serve a copy of the document on proceeding, in accordance with 18 CFR docket or in viewing/downloading that resource agency. 385.2010. comments and issuances in this docket k. Description of Request: The project may do so at http://www.ferc.gov. has not operated since 2012. As a result, Dated: May 26, 2021. the exemptee has determined it would Kimberly D. Bose, FOR FURTHER INFORMATION CONTACT: like to surrender the conduit exemption. Secretary. Ellen Brown may be reached by email Electricity to the hydro-generator has [FR Doc. 2021–11554 Filed 6–1–21; 8:45 am] at [email protected], telephone been permanently disconnected. No BILLING CODE 6717–01–P at (202) 502–8663. ground disturbance is associated with SUPPLEMENTARY INFORMATION: the proposed surrender and project Title: FERC–725G (Mandatory features will remain in place. DEPARTMENT OF ENERGY Reliability Standards for the Bulk-Power l. Locations of the Application: This System: Regional Reliability Standard filing may be viewed on the Federal Energy Regulatory PRC standards: PRC–006–5 Automatic Commission’s website at http:// Commission Underfrequency Load-Shedding (UFLS), www.ferc.gov using the ‘‘eLibrary’’ link. [Docket No. IC21–30–000, RD–20–4–000] PRC–002–2, PRC–012–2, PRC–019–2, Enter the docket number excluding the PRC–023–4, PRC–024–1, PRC–025–2, last three digits in the docket number Commission Information Collection PRC–026–1, and PRC–027–1. field to access the document. You may Activities (FERC–725G); Comment OMB Control No.: 1902–0252. also register online at http:// Request; Extension Type of Request: Revisions and www.ferc.gov/docs-filing/ extension to the information collection, AGENCY: Federal Energy Regulatory esubscription.asp to be notified via as discussed in Docket No. RD20–4–000. Commission, Department of Energy. email of new filings and issuances Abstract: On August 8, 2005, Congress related to this or other pending projects. ACTION: Notice of information collection enacted into law the Electricity For assistance, call 1–866–208–3676 or and request for comments. Modernization Act of 2005, which is email [email protected], for SUMMARY: In compliance with the Title XII, Subtitle A, of the Energy TTY, call (202) 502–8659. Agencies may 1 requirements of the Paperwork Policy Act of 2005 (EPAct 2005). EPAct obtain copies of the application directly 2005 added a new section 215 to the from the applicant. Reduction Act of 1995, 44 U.S.C. 3506(c)(2)(A), the Federal Energy FPA, which required a Commission- m. Individuals desiring to be included certified Electric Reliability on the Commission’s mailing list should Regulatory Commission (Commission or FERC) is soliciting public comment on Organization (ERO) to develop so indicate by writing to the Secretary mandatory and enforceable Reliability of the Commission. the currently approved information collection, FERC–725G (Mandatory Standards, which are subject to n. Comments, Protests, or Motions To Commission review and approval. Once Intervene: Anyone may submit Reliability Standards for the Bulk-Power System: PRC Reliability Standards.). approved, the Reliability Standards may comments, a protest, or a motion to be enforced by the ERO subject to DATES: Comments on the collection of intervene in accordance with the Commission oversight, or the information are due August 2, 2021. requirements of Rules of Practice and Commission can independently enforce Procedure, 18 CFR 385.210, .211, .214, ADDRESSES: You may submit copies of Reliability Standards.2 respectively. In determining the your comments (identified by Docket appropriate action to take, the No. IC21–30–000) by one of the 1 Energy Policy Act of 2005, Public Law 109–58, Commission will consider all protests or following methods: Title XII, Subtitle A, 119 Stat. 594, 941 (codified at other comments filed, but only those Electronic filing through http:// 16 U.S.C. 824o). who file a motion to intervene in www.ferc.gov, is preferred. 2 16 U.S.C. 824o(e)(3).
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The information collected by the • PRC–025–2 Generator Relay Load- underfrequency load shedding (UFLS) FERC–725G is required to implement Ability program results by supervisors and the statutory provisions of section 215 The purpose is to set load-responsive management is included in the [2] of the Federal Power Act (FPA). protective relays associated with administrative estimations. These are Section 215 of the FPA buttresses the generation Facilities at a level to prevent consistent with estimates for similar Commission’s efforts to strengthen the unnecessary tripping of generators tasks in other Commission approved reliability of the interstate bulk power during a system disturbance for standards. grid. conditions that do not pose a risk of RD20–4 (PRC–006–4) The FERC–725G information damage to the associated equipment. collection currently contains the The revisions in the proposed reporting and recordkeeping • PRC–026–1 Relay Performance Reliability Standards will align these requirements for the following During Stable Power Swings standards with the previously approved changes to the NERC registration Reliability Standards: PRC–002–2, PRC– The purpose is to ensure that load- criteria 4 by removing reference to 006–5, PRC–012–2, PRC–019–2, PRC– responsive protective relays are entities 5 that are no longer registered 023–4, PRC–024–1, PRC–025–2, PRC– expected to not trip in response to stable with NERC. In proposed Reliability 026–1, and PRC–027–1. power swings during non-Fault Standard PRC–006–4, NERC adds the • PRC–002–2 Disturbance Monitoring conditions. UFLS-only Distribution Provider as an and Reporting Requirements • PRC–027–1 Coordination of applicable entity. In two instances, The purpose is to have adequate data Protection Systems for Performance NERC has proposed changes that will available to facilitate analysis of Bulk During Faults promote consistent use of the term Planning Coordinator across the Electric System (BES) Disturb. The purpose is to maintain the Reliability Standards.6 coordination of Protection Systems • PRC–006–5 Automatic The Commission’s request to OMB Underfrequency Load Shedding installed to detect and isolate Faults on will reflect the following: Bulk Electric System (BES) Elements, • To establish design and Addition to the burden associated such that those Protection Systems with UFLS-only distribution providers documentation requirements for operate in the intended sequence during automatic Underfrequency Load to proposed (in RD–20–4) Reliability Faults. Standard PRC–006–4.7 The petition Shedding (UFLS) programs to arrest Each of these Reliability Standards declining frequency, assist recovery of states that the currently effective have three components that impose standard is applicable to planning frequency following underfrequency burden upon affected industry: events and provide last resort system coordinators, ‘‘UFLS entities’’ (which • Requirements (e.g., denoted in each preservation measures. may include transmission owners and Reliability Standard as R1, R2 . . .) distribution providers that own, operate, • PRC–012–2 Remedial Action • Measures (e.g., denoted in each or control UFLS equipment), and Schemes Reliability Standard as M1, M2 . . .) transmission owners that own certain • To ensure that Remedial Action Evidence Retention elements. In proposed Reliability Schemes (RAS) do not introduce These three components can be Standard PRC–006–4, NERC proposes to unintentional or unacceptable reliability reviewed for the Reliability Standards in add the UFLS-only distribution provider risks to the Bulk Electric System (BES). NERC petitions in FERC’s eLibrary as an applicable UFLS entity.8 system (http://www.ferc.gov/docs-filing/ • Current, Reliability Standard PRC– • PRC–019–2 Coordination of elibrary.asp) or on NERC’s own website 006–5 9 (formerly PRC–006–3) Generating Unit or Plant Capabilities, (www.nerc.com). (Automatic Underfrequency Load Voltage Regulating Controls, and Type of Respondents: Generator Shedding) Protection owners, Planning coordinators, Commission estimates the annual The purpose is to verify coordination Distribution providers, UFLS-only burden and cost for the information of generating unit Facility or Distribution Providers, and transmission collection as follows: synchronous condenser voltage owners in the Northeast Power 4 regulating controls, limit functions, Coordinating Council (NPCC) Region. Order on Electric Reliability Organization Risk 3 Based Registration Initiative and Requiring equipment capabilities and Protection Estimate of Annual Burden: Our Compliance Filing, 150 FERC ¶ 61,213 (2015); Order System settings. estimates are based on the NERC on Compliance Filing, 153 FERC ¶ 61,024 (2015). Compliance Registry Summary of 5 NERC’s risk-based registration initiative resulted • PRC–023–4 Transmission Relay Entities as of February 5, 2021. in the removal of the load-serving entity and Load-Ability purchasing-selling entity from the NERC According to the NERC compliance compliance registry. Protective relay settings shall not registry, and Functions as of, which 6 Standards Alignment with Registration Petition limit transmission load-ability; not indicates there are registered as GO, PC, at 7. interfere with system operators’ ability DP and TO entities. The individual 7 The burden associated with the Commission burden estimates are based on the time approved standard, PRC–006–3, is included in to take remedial action to protect system FERC–725G. reliability and; be set to reliably detect needed to gather data, run studies, and 8 Standards Alignment with Registration Petition all fault conditions and protect the analyze study results to design or at 13. electrical network from these faults. update the underfrequency load 9 PRC–006–5 was approved April 1, 2021 in RM21–1 which did not trigger the PRA and • shedding programs. Additionally, PRC–024–1 Generator Frequency documentation and the review of therefore did not require prior OMB approval. The and Voltage Protective Relay Settings current version of this standard, PRC–006–5, was approved by the Commission on April 1, 2021. The The purpose is to ensure Generator 3 Burden is defined as the total time, effort, or only change was a revision to the regional variance Owners set their generator protective financial resources expended by persons to for the WECC region for PRC–006–4 modifications relays such that generating units remain generate, maintain, retain, or disclose or provide that needs to be approved through OMB. information to or for a federal agency. See 5 CFR 10 The number of entities is being reduced in connected during defined frequency and 1320 for additional information on the definition of order to more clearly identify the applicable entities voltage excursions. information collection burden. Continued
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RD20–4 NET CHANGES FOR FERC–725G, OMB CONTROL NO. 1902–0252
Average Average Average 1 annual number Average annual total Total annual PRC regional reliability standards annual number of responses per number of responses burden hours burden hours of respondents respondent per response
(1) (2) (1) * (2) = (3) (4)
PRC–006–4 (Automatic Underfrequency Load Shedding) ¥80 (TO & DP) 1 ¥80 47 ¥3,760 Reporting Requirement—program decrease 10. PRC–006–4 (Automatic Underfrequency Load Shedding) ¥80 (TO & DP) 1 ¥80 5 ¥400 Evidence Retention—program decrease 14. PRC–006–4 (Automatic Underfrequency Load Shedding) 64 (PC) ...... 1 64 47 3,008 R1–R7, R11–R15 Reporting Requirement—program in- crease & clarification 11. PRC–006–4 (Automatic Underfrequency Load Shedding) 64 (PC) ...... 1 64 5 320 R1–R7, R11–R15 Evidence Retention-program increase & clarification 14. PRC–006–4 (Automatic Underfrequency Load Shedding) 478 (TO, DP, 1 478 5 2,390 R8–R10 Evidence Retention—program increase & clari- UFLS-only DP). fication 12.
Net Changes for FERC–725G due to RD20–4 ...... 446 (net increase) ...... 1,558 (net increase)
IC21–30–000 RENEWAL AS EFFECTED BY RD20–4–000: MANDATORY RELIABILITY STANDARDS FOR THE BULK-POWER SYSTEM: REGIONAL MANDATORY RELIABILITY STANDARDS FOR THE BULK-POWER SYSTEM: REGIONAL RELIABILITY STANDARD PRC STANDARDS: PRC–006–5, PRC–002–2, PRC–012–2, PRC–019–2, PRC–023–4, PRC–024–1, PRC–025–2, PRC–026–1, AND PRC–02713
Average Average Average annual annual annual Average Total annual Cost per Reliability standard & requirement 1 number of total burden hours & cost burden hours & cost respondent number of responses per number of ($) per response ($) (rounded) ($) respondents respondent responses I (1) I (2) I (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1) PRC–006–5 (Current burden after net changes due to RD20–4)
TO/DP/PC 14 ...... 480 1 480 35 hrs.; $2,905 ...... 16,800 hrs.; $1,394,400 ...... $2,905
Net Changes for FERC–725G ...... 926 ...... 18,358 hrs.; $1,523,714. due to RD20–4.
PRC–023–4
TO/GO/DP 15 ...... 1,314 1 1,314 303 hrs.; $25,149 ...... 398,142 hrs.; $33,045,786 ..... 25,149 PC ...... 65 1 65 212 hrs.; $17,596 ...... 13,780 hrs.; $1,143,740 ...... 17,596
in subsequent rows in this table. As stated in the NERC Petition, ‘‘[t]he currently effective standard is applicable to Planning Coordinators, ‘‘UFLS entities’’ (which may include Transmission Owners and Distribution Providers that own, operate, or control UFLS equipment), and Transmission Owners that own certain Elements. In proposed Reliability Standard PRC–006–4, NERC proposes to add the UFLS-Only Distribution Provider as an applicable UFLS entity, consistent with the language in Section III(b) of Appendix 5B of the NERC Rules of Procedure (Statement of Compliance Registry Criteria) that the Reliability Standards applicable to UFLS-Only Distribution Providers includes prior effective versions of the PRC–006 standard.’’ The changes are not due to Docket No. RD20–4–000. 11 The increases are not due to Docket No. RD20– 4–000. They are a program increase of 64 PCs (and the corresponding hrs.) in order to correct and clarify the estimates. 12 The program increase is due to adding 63 UFLS-only DPs due to Docket No. RD20–4–000. In addition, 415 TOs and DPs were originally estimated in FERC–725A due to Order No. 693. However, the estimates and descriptions were not clearly spelled out, so we are clarifying them. As a result, there are 315 hours (63 * 5 hours) and the corresponding increase of 63 respondents of program increase due to Docket No. RD20–4–000, and 2,075 hours (415 * 5 hours) of increase due to adjustment.
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IC21–30–000 RENEWAL AS EFFECTED BY RD20–4–000: MANDATORY RELIABILITY STANDARDS FOR THE BULK-POWER SYSTEM: REGIONAL MANDATORY RELIABILITY STANDARDS FOR THE BULK-POWER SYSTEM: REGIONAL RELIABILITY STANDARD PRC STANDARDS: PRC–006–5, PRC–002–2, PRC–012–2, PRC–019–2, PRC–023–4, PRC–024–1, PRC–025–2, PRC–026–1, AND PRC–02713—Continued
Average Average Average annual annual annual Average Total annual Cost per Reliability standard & requirement 1 number of total burden hours & cost burden hours & cost respondent number of responses per number of ($) per response ($) (rounded) ($) respondents respondent responses I (1) (2) I (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1) PRC–025–2 16
GO/TO/DP 17 ...... 1,314 1 1,314 4 hrs.; $332 ...... 5,256 hrs.; $436,248 ...... 332
PRC–019–2
GO/TO ...... 1,178 1 1,178 8.9 hrs.; $664 ...... 9,424 hrs.; $782,192 ...... 664
PRC–024–1
GO ...... 1,003 1 1,003 8 hrs.; $664 ...... 8,024 hrs.; $665,992 ...... 664
PRC–026–1
GO/PC/TO ...... 1,189 1 1,189 18 hrs.; $1,494 ...... 21,402 hrs.; $1,776,366 ...... 1,494
PRC–002–2
TO/GO/PC 18 ...... 1,189 0.50 594.5 100 hrs.; $8,300 ...... 59,450 hrs.; $4,934,350 ...... 8,300
PRC–012–2
RC/PC/TO/GO/DP ...... 1,329 1 1,329 88 hrs.; $7,304 ...... 116,952 hrs.; $9,707,016 ...... 7,304
PRC–027–1
TO/GO/DP ...... 1,314 1 1,314 44 hrs.; $3,652 ...... 57,816 hrs.; $4,798,728 ...... 3,652
Total for FERC–725G ...... 10,226.50 ...... 708,604 hrs.; $58,814,132.
Comments: Comments are invited on: information is necessary for the proper DEPARTMENT OF ENERGY (1) Whether the collection of performance of the functions of the Commission, including whether the Federal Energy Regulatory 13 The number of respondents on this table reflect information will have practical utility; Commission information taken from NERC Compliance Registry, (2) the accuracy of the agency’s estimate while it may show a decrease from previous years Combined Notice of Filings #1 the 2021 values reflect treating standards as a whole of the burden and cost of the collection instead of by requirement which allow for aggregate of information, including the validity of Take notice that the Commission values and eliminating multiple counts of the same entity within a standard. the methodology and assumptions used; received the following electric rate 14 Using NERC Compliance Registration data (3) ways to enhance the quality, utility filings: (February 5, 2021), the number of respondents are and clarity of the information collection; Docket Numbers: ER15–1375–012. for US unique entities and takes into account the and (4) ways to minimize the burden of overlap between functions of the DP = Distribution Applicants: McCoy Solar, LLC. Provider, TO = Transmission Owner and PC= the collection of information on those Description: Notice of Change in Planning Coordinator for a total of 480. who are to respond, including the use Status of McCoy Solar, LLC. 15 Using NERC Compliance Registration data of automated collection techniques or Filed Date: 5/26/21. (February 5, 2021), the number of respondents are other forms of information technology. for US unique entities and takes into account the Accession Number: 20210526–5138. overlap between functions of the DP = Distribution Dated: May 26, 2021. Comments Due: 5 p.m. ET 6/16/21. Provider, TO = Transmission Owner and DP = Distribution Provider for a total of 1,314. The Kimberly D. Bose, Docket Numbers: ER18–194–000. number of hours also take into account line Secretary. Applicants: American Electric Power terminal work needed to be done applicable TO, [FR Doc. 2021–11552 Filed 6–1–21; 8:45 am] GO, or DP as per PRC–023–1 approved in Order No. Service Corporation, Southwest Power 773 March 18, 2010. BILLING CODE 6717–01–P Pool, Inc. 16 Reliability Standard PRC–025–2 from FERC– Description: Formal Challenge of Joint 725G2 (OMB No. 1902–0281)– a temporary place Customers’ to May 26, 2021 Annual holder is now being placed back into 725G. Informational Filing by American 17 According to the NERC compliance registry as of February 5, 2021, NERC has registered 379 Electric Power Service Corporation. distribution providers (DP), 1,003 generator owners generator owner that is also a transmission owner Filed Date: 5/21/21. (GO) and 321 transmission owners (TO). However, and/or a distribution owner. These values reflect Accession Number: 20210521–5275. under NERC’s compliance registration program, removing any year 1–2 costs and covers on-going entities may be registered for multiple functions, so Comments Due: 5 p.m. ET 6/21/21. cost from version PRC–025–1 and PRC–025–2. these numbers incorporate some double counting. Docket Numbers: ER20–687–003. The number of unique entities responding will be 18 Based on the Requirements of PRC–002–2 some approximately 994 entities registered as a entities do not have to perform tasks annual so Applicants: Tri-State Generation and transmission owner, a distribution provider, or a average response rate is set to 0.50. Transmission Association, Inc.
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Description: Compliance filing: other information, call (866) 208–3676 Health and Human Services, 12225 Fourth Compliance Filing to be effective (toll free). For TTY, call (202) 502–8659. Wilkins Avenue, Rockville, Maryland 2/25/2020. Dated: May 26, 2021. 20852. Filed Date: 5/26/21. In addition to publishing the full text Debbie-Anne A. Reese, Accession Number: 20210526–5089. of this document in the Federal Comments Due: 5 p.m. ET 6/16/21. Deputy Secretary. Register, the Commission provides all Docket Numbers: ER21–1438–000; [FR Doc. 2021–11579 Filed 6–1–21; 8:45 am] interested persons an opportunity to ER18–2358–000; ER19–1357–000; BILLING CODE 6717–01–P view and/or print the contents of this ER20–1313–000. document via the internet through the Commission’s Home Page (http:// Applicants: GridLiance High Plains DEPARTMENT OF ENERGY LLC, Southwest Power Pool, Inc. www.ferc.gov) using the ‘‘eLibrary’’ link. Description: Motion to Intervene and Federal Energy Regulatory Enter the docket number excluding the Consolidate and Formal Challenge of Commission last three digits in the docket number Xcel Energy Services Inc. field to access the document. At this Filed Date: 4/15/21. [Docket No. EL21–77–000] time, the Commission has suspended Accession Number: 20210415–5303. access to the Commission’s Public Comments Due: 5 p.m. ET 6/25/21. Tenaska Clear Creek Wind, LLC v. Reference Room, due to the Southwest Power Pool, Inc.; Notice of Docket Numbers: ER21–1737–001. proclamation declaring a National Complaint Applicants: Indianapolis Power & Emergency concerning the Novel Light Company. Take notice that on May 21, 2021, Coronavirus Disease (COVID–19), issued Description: Tariff Amendment: IPL pursuant to sections 206, 306, and 309 by the President on March 13, 2020. For Second Supplemental Filing to Reactive of the Federal Power Act, 16 U.S.C. assistance, contact the Federal Energy Power Tariff & Motion to be effective 6/ 824e, 825e, and 825h and Rule 206 of Regulatory Commission at 9/2021. the Federal Energy Regulatory [email protected], or call Filed Date: 5/26/21. Commission’s (Commission) Rules of toll-free, (886) 208–3676 or TYY, (202) Accession Number: 20210526–5080. Practice and Procedure, 18 CFR 385.206, 502–8659. Comments Due: 5 p.m. ET 6/16/21. Tenaska Clear Creek Wind, LLC Comment Date: 5:00 p.m. Eastern Docket Numbers: ER21–2001–000. (Complainant) filed a formal complaint Time on June 10, 2021. Applicants: Shell Chemical against Southwest Power Pool, Inc. Dated: May 26, 2021. Appalachia LLC. (Respondent), alleging that the Debbie-Anne A. Reese, Description: Baseline eTariff Filing: Respondent’s affected system studies for Deputy Secretary. Market-Based Rate Application and the Tenaska Clear Creek Wind Project [FR Doc. 2021–11578 Filed 6–1–21; 8:45 am] Request for Expedited Action to be are unjust, unreasonable, and contrary BILLING CODE 6717–01–P effective 5/27/2021. to Commission precedent, all as more Filed Date: 5/26/21. fully explained in its complaint. Accession Number: 20210526–5099. The Complainant certify that copies of Comments Due: 5 p.m. ET 6/16/21. ENVIRONMENTAL PROTECTION the complaint were served on the AGENCY Docket Numbers: ER21–2002–000. contacts listed for Respondent in the Applicants: Duke Energy Florida, Commission’s list of Corporate Officials. [FRL–10024–46–OAR; EPA–HQ–OAR–2021– LLC. Any person desiring to intervene or to 0329] Description: Compliance filing: DEF— protest this filing must file in Compliance Filing Revising Tariff accordance with Rules 211 and 214 of Proposed Information Collection Records to Reflect Approved Settlement the Commission’s Rules of Practice and Request; Comment Request; to be effective 5/3/2021. Procedure (18 CFR 385.211, 385.214). Certification and Compliance Filed Date: 5/26/21. Protests will be considered by the Requirements for Nonroad Spark- Accession Number: 20210526–5195. Commission in determining the Ignition Engines (Renewal), ICR Comments Due: 5 p.m. ET 6/16/21. appropriate action to be taken, but will 1695.14, OMB 2060–0338 The filings are accessible in the not serve to make protestants parties to AGENCY: Environmental Protection Commission’s eLibrary system (https:// the proceeding. Any person wishing to Agency (EPA). elibrary.ferc.gov/idmws/search/ become a party must file a notice of ACTION: Notice. fercgensearch.asp) by querying the intervention or motion to intervene, as docket number. appropriate. The Respondent’s answer SUMMARY: The Environmental Protection Any person desiring to intervene or and all interventions, or protests must Agency (EPA) is planning to submit an protest in any of the above proceedings be filed on or before the comment date. information collection request (ICR), must file in accordance with Rules 211 The Respondent’s answer, motions to ‘‘Certification and Compliance and 214 of the Commission’s intervene, and protests must be served Requirements for Nonroad Spark- Regulations (18 CFR 385.211 and on the Complainant. Ignition Engines (Renewal)’’, ICR 385.214) on or before 5:00 p.m. Eastern The Commission strongly encourages 1695.14, OMB 2060–0338 to the Office time on the specified comment date. electronic filings of comments, protests of Management and Budget (OMB) for Protests may be considered, but and interventions in lieu of paper using review and approval in accordance with intervention is necessary to become a the ‘‘eFiling’’ link at http:// the Paperwork Reduction Act. Before party to the proceeding. www.ferc.gov. Persons unable to file doing so, EPA is soliciting public eFiling is encouraged. More detailed electronically may mail similar comments on specific aspects of the information relating to filing pleadings to the Federal Energy proposed information collection request requirements, interventions, protests, Regulatory Commission, 888 First Street as described below. This notice is a service, and qualifying facilities filings NE, Washington, DC 20426. Hand proposed extension of the Nonroad can be found at: http://www.ferc.gov/ delivered submissions in docketed Spark-Ignition Engines ICR, which is docs-filing/efiling/filing-req.pdf. For proceedings should be delivered to currently approved through January 31,
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2022. This ICR will incorporate be viewed online at may be legally introduced into Emissions Defect Information Report www.regulations.gov or in person at the commerce. To apply for a certificate of (EDIR) and Voluntary Emissions Recall EPA Docket Center, EPA West, Room conformity, manufacturers are required Report (VERR) obligations within this 3334, 1301 Constitution Ave. NW, to submit descriptions of their planned ICR. The EDIR and VERR have been Washington, DC. The telephone number production line, including detailed segregated from 2060–0048 for nonroad for the Docket Center is 202–566–1744. descriptions of the emission control spark-ignition engines and vehicles and For additional information about EPA’s system, and test data. This information incorporated into our computations for public docket, visit http://www.epa.gov/ is organized by ‘‘engine family’’ groups reporting and notice purposes in this dockets. expected to have similar emission ICR. An Agency may not conduct or Pursuant to section 3506(c)(2)(A) of characteristics. The emission values sponsor and a person is not required to the PRA, EPA is soliciting comments achieved during certification testing respond to a collection of information and information to enable it to: (i) may also be used in the Averaging, unless it displays a currently valid OMB Evaluate whether the proposed Banking, and Trading (ABT) Program. control number. collection of information is necessary The program allows manufacturers to DATES: Comments must be submitted on for the proper performance of the bank credits for engine families that or before August 2, 2021. functions of the Agency, including emit below the standard and use the ADDRESSES: Submit your comments, whether the information will have credits for families that emit above the referencing the Docket ID No. EPA–HQ– practical utility; (ii) evaluate the standard. They may also trade banked OAR–2021–0329, to the EPA: Online accuracy of the Agency’s estimate of the credits with other manufacturers. using www.regulations.gov (our burden of the proposed collection of Participation in the ABT program is preferred method), or by mail to: EPA information, including the validity of voluntary. Different categories of spark- Docket Center, Environmental the methodology and assumptions used; ignition engines may also be required to Protection Agency, Mail Code 28221T, (iii) enhance the quality, utility, and comply with production-line testing 1200 Pennsylvania Ave. NW, clarity of the information to be (PLT) and in-use testing. There are also Washington, DC 20460. collected; and (iv) minimize the burden recordkeeping and labeling EPA’s policy is that all comments of the collection of information on those requirements. This information is received will be included in the public who are to respond, including through collected electronically by the Gasoline docket without change including any the use of appropriate automated Engine Compliance Center (GECC), personal information provided, unless electronic, mechanical, or other Compliance Division, Office of the comment includes profanity, threats, technological collection techniques or Transportation and Air Quality (OTAQ), information claimed to be Confidential other forms of information technology, Office of Air and Radiation of the U.S. Business Information (CBI) or other e.g., permitting electronic submission of Environmental Protection Agency. information whose disclosure is responses. EPA will consider the GECC uses this information to ensure restricted by statute. comments received and amend the ICR that manufacturers comply with FOR FURTHER INFORMATION CONTACT: as appropriate. The final ICR package applicable regulations and the Clean Air Julian Davis, Attorney Adviser, will then be submitted to OMB for Act (CAA). It may also be used by the Compliance Division, Office of review and approval. At that time, EPA Office of Enforcement and Compliance Transportation and Air Quality, U.S. will issue another Federal Register Assurance (OECA) and the Department Environmental Protection Agency, 2000 notice to announce the submission of of Justice for enforcement purposes. Traverwood, Ann Arbor, Michigan the ICR to OMB and the opportunity to Non-CBI may be disclosed on OTAQ’s 48105; telephone number: 734–214– submit additional comments to OMB. website or upon request under the 4029; fax number 734–214–4869; email Abstract: This information collection Freedom of Information Act (FOIA) to address: [email protected]. is requested under the authority of Title trade associations, environmental SUPPLEMENTARY INFORMATION: II of the Clean Air Act (42 U.S.C. 7521 groups, and the public. Any information Supporting documents, which explain et seq.) Under this Title, EPA is charged submitted for which a claim of in detail the information that the EPA with issuing certificates of conformity confidentiality is made is safeguarded will be collecting, will be available in for those engines which comply with according to EPA regulations at 40 CFR the public docket, EPA–HQ–OAR– applicable emission standards. Such a 2.201 et seq. 2021–0329, for this ICR. The docket can certificate must be issued before engines Form Numbers:
Form name Form No.
NR Small SI Bond Worksheet ...... 5900–450 NR Small SI Small Volume Bond Worksheet ...... 5900–451 Altitude Worksheet ...... 5900–452 Annual Production Worksheet ...... 5900–90 NR Small SI Production Line Testing Report ...... 5900–133 NR Small SI Averaging, Banking, and Trading Report ...... 5900–131 Evaporative Fuel Cap Test Data ...... 5900–453 Evaporative Fuel Line Test Data ...... 5900–454 Evaporative Fuel Tank Data Worksheet ...... 5900–455 HDSI ABT Report ...... 5900–134 Marine and Large SI Diurnal System Data Worksheet ...... 5900–456 NR Small SI Equipment Worksheet ...... 5900–457 Marine SI Vessel Worksheet ...... 5900–458 Marine SI Engine Data Map Sheet ...... 5900–459 Marine SI Averaging, Banking, and Trading Report ...... 5900–92 Marine SI Production Line Testing Report ...... 5900–91 Large SI Production Line Testing Report ...... 5900–130 Large SI In-Use Testing Report ...... 5900–93
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Form name Form No.
Marine SI In-Use Testing Report ...... 5900–93 Snowmobile Production Line Testing Report ...... 5900–460 Snowmobile Certification Template ...... 5900–463 Rec Vehicle Catalytic Converter Checklist ...... 5900–464 Snowmobile Averaging, Banking, and Trading Template ...... 5900–465 Rec Vehicle Fuel Line Test Data Worksheet ...... 5900–466 Rec Vehicle Fuel Tank Test Data Worksheet ...... 5900–467
Respondents/affected entities: EXPORT-IMPORT BANK conduct the board meeting virtually. If Respondents are manufacturers of you would like to observe the open nonroad engines within the following Sunshine Act Meetings; Notice of portion of the virtual meeting, see North American Industry Classification Open Meeting of the Advisory instructions below for board meeting System (NAICS) code: Committee of the Export-Import Bank visitors. of the United States (EXIM) 333618 Other Engine Equipment ADDRESSES: To observe the open portion Manufacturing TIME AND DATE: Thursday, June 17th, of the virtual meeting, go to FCA.gov, select ‘‘Newsroom,’’ then ‘‘Events.’’ 336312 Gasoline Engine and Engine 2021 from 2:00–4:30 p.m. EDT. There you will find a description of the Parts Manufacturing PLACE: The meeting will be held virtually. meeting and a link to ‘‘Instructions for 336999 Other Transportation board meeting visitors.’’ See STATUS: Public Participation: The Equipment Manufacturing SUPPLEMENTARY INFORMATION for further meeting will be open to public information about attendance requests. 336991 Motorcycle, Bicycle and Parts participation and time will be allotted Manufacturing for questions or comments submitted FOR FURTHER INFORMATION CONTACT: Dale 333112 Lawn & Garden Tractor and online. Members of the public may also Aultman, Secretary to the Farm Credit Home Lawn & Garden Equipment file written statements before or after the Administration Board (703) 883–4009. Manufacturing meeting to [email protected]. TTY is (703) 883–4056. Interested parties may register for the SUPPLEMENTARY INFORMATION: 335312 Motor and Generator meeting at https://app.smartsheet.com/ Instructions for attending the virtual Manufacturing b/form/ meeting: Parts of this meeting of the Estimated number of respondents: 42af9759b5594205b9d9dc3ae754afae. Board will be open to the public, and 430 (total). MATTERS TO BE CONSIDERED: Discussion parts will be closed. If you wish to of EXIM policies and programs to observe the open portion, at least 24 Frequency of response: Yearly for provide competitive financing to hours before the meeting, go to FCA.gov, certification, production, ABT, and expand United States exports and select ‘‘Newsroom,’’ then ‘‘Events.’’ warranty reports. comments for inclusion in EXIM’s There you will find a description of the Total estimated burden: 1,718 hours Report to the U.S. Congress on Global meeting and a link to ‘‘Instructions for (per respondent, per year). Burden is Export Credit Competition. board meeting visitors.’’ If you need defined at 5 CFR 1320.3(b). CONTACT PERSON FOR MORE INFORMATION: assistance for accessibility reasons or if Total estimated cost: $95,360,655 (per For further information, contact India you have any questions, contact Dale year), includes $30,243,492.655 Walker, External Enagagement Aultman, Secretary to the Farm Credit annualized capital or operation & Specialist, at 202–480–0062. Administration Board, at (703) 883– 4009. The matters to be considered at maintenance costs. Joyce B. Stone, the meeting are as follows: Changes in Estimates: There is a Assistant Corporate Secretary. Open Session decrease of 190 Respondents due to a [FR Doc. 2021–11717 Filed 5–28–21; 4:15 pm] previous overestimate of the number of BILLING CODE 6690–01–P Approval of Minutes component manufacturers certifying • May 13, 2021 under 40 CFR part 1060. However, as a result of consolidating Defect and Recall FARM CREDIT ADMINISTRATION New Business reporting and an improved and • Sunshine Act Meetings Bank Liquidity Reserve—Advance complete accounting for compliance Notice of Proposed Rulemaking activities, such as Production-Line AGENCY: Farm Credit Administration testing, the total hours to comply with Board, Farm Credit Administration. Reports this collection request has increased for ACTION: Notice, regular meeting. • Quarterly Report on Economic the total estimated burden of 738,603 Conditions and FCS Condition and hours for the industry. SUMMARY: Notice is hereby given, Performance pursuant to the Government in the • Byron Bunker, Semi-Annual Report on Office of Sunshine Act, of the forthcoming Examination Operations Director, Compliance Division, Office of regular meeting of the Farm Credit Transportation and Air Quality. Administration Board. Closed Session [FR Doc. 2021–11582 Filed 6–1–21; 8:45 am] DATES: The regular meeting of the Board • Office of Examination Quarterly BILLING CODE 6560–50–P will be held June 10, 2021, from 9:00 Report 1 a.m. until such time as the Board may conclude its business. Note: Because of 1 Closed session is exempt pursuant to 5 U.S.C. the COVID–19 pandemic, we will Section 552b(c)(8) and (9).
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Dated: May 28, 2021. FEDERAL TRADE COMMISSION burden of about 18 hours per year Dale Aultman, (17,100 hours total); 75 manufacturers Secretary, Farm Credit Administration Board. Agency Information Collection incur an average recordkeeping burden Activities; Proposed Collection; [FR Doc. 2021–11705 Filed 5–28–21; 4:15 pm] of about 60 hours per year (4,500 hours Comment Request; Extension total); and 950 importers of furs and fur BILLING CODE 6705–01–P products incur an average AGENCY: Federal Trade Commission. recordkeeping burden of 30 hours per ACTION: Notice. year (28,500 hours total)]. FEDERAL RESERVE SYSTEM SUMMARY: In accordance with the Disclosure: 252,901 hours [(214,834 Paperwork Reduction Act of 1995 hours for labeling + 67 hours for Change in Bank Control Notices; (PRA), the Federal Trade Commission invoices + 38,000 hours for Acquisitions of Shares of a Bank or (FTC or Commission) is seeking public advertising)]. Bank Holding Company comment on its proposal to extend for Estimated annual cost burden: an additional three years the Office of $5,194,259 (solely relating to labor The notificants listed below have Management and Budget (OMB) costs). applied under the Change in Bank Abstract: The Fur Products Labeling clearance for information collection 1 Control Act (Act) (12 U.S.C. 1817(j)) and requirements contained in the rules and Act (Fur Act) prohibits the § 225.41 of the Board’s Regulation Y (12 regulations under the Fur Products misbranding and false advertising of fur CFR 225.41) to acquire shares of a bank Labeling Act (Fur Rules or Rules). That products. The Fur Rules establish or bank holding company. The factors clearance expires on August 31, 2021. disclosure requirements that assist consumers in making informed that are considered in acting on the DATES: Comments must be received on purchasing decisions, and applications are set forth in paragraph 7 or before August 2, 2021. of the Act (12 U.S.C. 1817(j)(7)). recordkeeping requirements that assist ADDRESSES: Interested parties may file a the Commission in enforcing the Rules. The public portions of the comment online or on paper by The Rules also provide a procedure for applications listed below, as well as following the instructions in the exemption from certain disclosure other related filings required by the Request for Comments part of the provisions under the Fur Act. Board, if any, are available for SUPPLEMENTARY INFORMATION section As required by section 3506(c)(2)(A) immediate inspection at the Federal below. Write ‘‘Fur Rules; PRA of the PRA, 44 U.S.C. 3506(c)(2)(A), the Reserve Bank(s) indicated below and at Comment: FTC File No. P072108’’ on FTC is providing this opportunity for the offices of the Board of Governors. your comment, and file your comment public comment before requesting that This information may also be obtained online at https://www.regulations.gov by OMB extend the existing clearance for on an expedited basis, upon request, by following the instructions on the web- the information collection requirements contacting the appropriate Federal based form. If you prefer to file your contained in the Commission’s Fur Reserve Bank and from the Board’s comment on paper, mail your comment Rules. Freedom of Information Office at to the following address: Federal Trade https://www.federalreserve.gov/foia/ Commission, Office of the Secretary, Burden Statement request.htm. Interested persons may 600 Pennsylvania Avenue NW, Suite Staff’s burden estimates are based on express their views in writing on the CC–5610 (Annex J), Washington, DC data from the Department of Labor’s standards enumerated in paragraph 7 of 20580, or deliver your comment to the Bureau of Labor Statistics (BLS) and the Act. following address: Federal Trade data or other input from the Fur Comments regarding each of these Commission, Office of the Secretary, Industry Council of America. The applications must be received at the Constitution Center, 400 7th Street SW, relevant information collection Reserve Bank indicated or the offices of 5th Floor, Suite 5610 (Annex J), requirements in these rules and staff’s the Board of Governors, Ann E. Washington, DC 20024. corresponding burden estimates follow. Misback, Secretary of the Board, 20th FOR FURTHER INFORMATION CONTACT: Jock The estimates address the number of Street and Constitution Avenue NW, K. Chung, Attorney, Division of hours needed and the labor costs Washington, DC 20551–0001, not later Enforcement, Bureau of Consumer incurred to comply with the than June 17, 2021. Protection, Federal Trade Commission, requirements. Mail Code CC–9528, 600 Pennsylvania The Fur Products Labeling Act (Fur A. Federal Reserve Bank of Chicago Ave. NW, Washington, DC 20580, (202) Act) 2 prohibits the misbranding and (Colette A. Fried, Assistant Vice 326–2984. false advertising of fur products. The President) 230 South LaSalle Street, Fur Rules establish disclosure Chicago, Illinois 60690–1414: SUPPLEMENTARY INFORMATION: Title: Rules and regulations under the Fur requirements that assist consumers in 1. WaterStone Bank SSB 2015 Products Labeling Act, 16 CFR part 301. making informed purchasing decisions, Amended and Restated Employee Stock OMB Control Number: 3084–0099. and recordkeeping requirements that Ownership Plan and Waterstone Bank Type of Review: Extension of a assist the Commission in enforcing the SSB 401(K) Plan; to acquire voting currently approved collection. Rules. The Rules also provide a shares of WaterStone Financial, Inc., Likely Respondents: Retailers, procedure for exemption from certain and thereby indirectly acquire voting manufacturers, processors, and disclosure provisions under the Fur Act. shares of WaterStone Bank, all of importers of furs and fur products. Estimated annual hours burden: Wauwatosa, Wisconsin. Frequency of Response: Third party 303,001 hours (50,100 hours for Board of Governors of the Federal Reserve disclosure; recordkeeping requirement. recordkeeping + 252,901 hours for System, May 27, 2021. Estimated Annual Hours Burden: disclosure). 303,001 hours (50,100 hours for Recordkeeping: The Fur Rules require Michele Taylor Fennell, recordkeeping + 252,901 hours for that retailers, manufacturers, processors, Deputy Associate Secretary of the Board. disclosure). [FR Doc. 2021–11588 Filed 6–1–21; 8:45 am] Recordkeeping: 50,100 hours [950 1 15 U.S.C. 69 et seq. BILLING CODE P retailers incur an average recordkeeping 2 15 U.S.C. 69 et seq.
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and importers of furs and fur products labeling requirements annually is invoice for pelts.4 The invoice keep certain records in addition to those approximately 3,680,000.3 Staff disclosure requirement applies to fur they may keep in the ordinary course of estimates that for approximately 50 pelts, which are generally sold in groups business. Staff estimates that 950 percent of these garments (1,840,000) of at least 1100, on average. Based on retailers incur an average recordkeeping labels are attached manually, requiring information from the Fur Industry burden of about 18 hours per year approximately four minutes per garment Council of America, staff estimates total (17,100 hours total); 75 manufacturers for a total of 122,667 hours annually. sales of 4,450,000 pelts annually. Thus, incur an average recordkeeping burden For the remaining 1,840,000, the process the invoice disclosure requirement of about 60 hours per year (4,500 hours of attaching labels is semi-automated entails an estimated total burden of 67 total); and 950 importers of furs and fur and requires an average of hours (4,046 total invoices × one products incur an average approximately one minute per item, for minute). recordkeeping burden of 30 hours per a total of 30,667 hours. Thus, the total Staff estimates that the Fur Rules’ year (28,500 hours total). The combined burden for attaching labels is 153,334 advertising disclosure requirements recordkeeping burden for the industry is hours, and the total burden for labeling impose an average burden of 40 hours approximately 50,100 hours annually. garments is 61,500 hours per year per year for each of the approximately Disclosure: Staff estimates that 1,025 (30,750 hours to determine label content 950 domestic fur retailers, or a total of respondents (75 manufacturers + 950 + 30,750 hours to draft and order 38,000 hours. retail sellers of fur garments) each labels). Thus, staff estimates the total require an average of 30 hours per year Staff estimates that the incremental disclosure burden to be approximately to determine label content (30,750 hours burden associated with the Fur Rules’ 252,901 hours. total), and an average of 30 hours per invoice disclosure requirement, beyond Estimated annual cost burden: year to draft and order labels (30,750 the time that would be devoted to $5,194,259 (solely relating to labor hours total). Staff estimates that the total preparing invoices in the absence of the costs). The chart below summarizes the number of garments subject to the fur Rules, is approximately one minute per total estimated costs.
Task Hourly rate Burden hours Labor cost
Determine label content ...... $30.00 30,750 $922,500 Draft and order labels ...... 19.00 30,750 584,250 Attach labels ...... 5 13.00 122,667 1,594,671 Invoice disclosures ...... 14.00 67 938 Prepare advertising disclosures ...... 30.00 38,000 1,140,000 Recordkeeping ...... 18.00 50,100 951,900
Total ...... 5,194,259
Staff believes that there are no current agency, including whether the Commission will be subject to delay. We start-up costs or other capital costs information will have practical utility; encourage you to submit your comments associated with the Fur Rules. Because (2) the accuracy of the agency’s estimate online through the https:// the labeling of fur products has been an of the burden of the proposed collection www.regulations.gov website. integral part of the manufacturing of information, including the validity of If you prefer to file your comment on process for decades, manufacturers have the methodology and assumptions used; paper, write ‘‘Fur Rules; PRA Comment: in place the capital equipment (3) ways to enhance the quality, utility, FTC File No. P072108’’ on your necessary to comply with the Rules’ and clarity of the information to be comment and on the envelope, and mail labeling requirements. Industry sources collected; and (4) ways to minimize the your comment to the following address: indicate that much of the information burden of maintaining records and Federal Trade Commission, Office of the required by the Fur Act and Rules providing disclosures to consumers. All Secretary, 600 Pennsylvania Avenue would be included on the product label comments must be received on or before NW, Suite CC–5610 (Annex J), even absent the Rules. Similarly, August 2, 2021. Washington, DC 20580; or deliver your invoicing, recordkeeping, and You can file a comment online or on comment to the following address: advertising disclosures are tasks paper. For the FTC to consider your Federal Trade Commission, Office of the performed in the ordinary course of comment, we must receive it on or Secretary, Constitution Center, 400 7th business so that covered firms would before August 2, 2021. Write ‘‘Fur Rules; Street SW, 5th Floor, Suite 5610 (Annex incur no additional capital or other non- PRA Comment: FTC File No. P072108’’ J), Washington, DC 20024. If possible, labor costs as a result of the Act or the on your comment. Your comment— submit your paper comment to the Rules. including your name and your state— Commission by courier or overnight will be placed on the public record of service. Request for Comments this proceeding, including the https:// Because your comment will become Pursuant to Section 3506(c)(2)(A) of www.regulations.gov website. publicly available at https:// the PRA, the FTC invites comments on: Due to the public health emergency in www.regulations.gov, you are solely (1) Whether the proposed collection of response to the COVID–19 outbreak and responsible for making sure that your information is necessary for the proper the agency’s heightened security comment does not include any sensitive performance of the functions of the screening, postal mail addressed to the or confidential information. In
3 The total number of imported fur garments, fur- 4 The invoice disclosure burden for PRA purposes 5 Per industry sources, most fur labeling is done trimmed garments, and fur accessories is estimated excludes the time that respondents would spend for in the United States. This rate is reflective of an to be approximately 3,500,000 based on industry invoicing, apart from the Fur Rules, in the ordinary average domestic hourly wage for such tasks data. Estimated domestic production totals 180,000. course of business. See 5 CFR 1320.3(b)(2). performed in the United States, which is derived from recent BLS statistics.
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particular, your comment should not OFFICE OF GOVERNMENT ETHICS completed by individuals who are include any sensitive personal nominated by the President for high- information, such as your or anyone Agency Information Collection level executive branch positions else’s Social Security number; date of Activities; Information Collection requiring Senate confirmation and birth; driver’s license number or other Renewal; Comment Request for OGE individuals entering into and departing state identification number, or foreign Form 278e Executive Branch from other public reporting positions in country equivalent; passport number; Personnel Public Financial Disclosure the executive branch. The financial financial account number; or credit or Report information collected relates to: Assets and income; transactions; gifts, debit card number. You are also solely AGENCY: Office of Government Ethics reimbursements and travel expenses; responsible for making sure that your (OGE). comment does not include any sensitive liabilities; agreements or arrangements; ACTION: Notice and request for outside positions; and compensation health information, such as medical comments. records or other individually over $5,000 paid by a source—all identifiable health information. In SUMMARY: After this first round notice subject to various reporting thresholds addition, your comment should not and public comment period, the Office and exclusions. The information is include any ‘‘trade secret or any of Government Ethics (OGE) intends to collected in accordance with section 102 of the Ethics in Government Act, 5 commercial or financial information request that the Office of Management U.S.C. app. sec. 102, as amended by the which .... is privileged or and Budget (OMB) renew its approval Representative Louise McIntosh confidential’’—as provided by Section under the Paperwork Reduction Act for Slaughter Stop Trading on 6(f) of the FTC Act, 15 U.S.C. 46(f), and an existing information collection, entitled the OGE Form 278e Executive Congressional Knowledge Act of 2012 FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— (Pub. L. 112–105) (STOCK Act) and including in particular competitively Branch Personnel Public Financial Disclosure Report. OGE’s implementing financial sensitive information such as costs, disclosure regulations at 5 CFR part DATES: Written comments by the public sales statistics, inventories, formulas, 2634. and agencies on this proposed extension patterns, devices, manufacturing In 2013, OGE sought and received processes, or customer names. are invited and must be received by August 2, 2021. approval for the OGE Form 278e, an Comments containing material for electronic version of the Form 278, ADDRESSES: which confidential treatment is Comments may be implemented pursuant to the e-filing submitted to OGE by any of the requested must be filed in paper form, system mandated under section 11(b) of following methods: must be clearly labeled ‘‘Confidential,’’ the STOCK Act. The OGE Form 278e Email: [email protected] (Include collects the same information as the and must comply with FTC Rule 4.9(c). reference to ‘‘OGE Form 278e In particular, the written request for OGE Form 278. In 2014, OGE sought paperwork comment’’ in the subject line and received approval to incorporate the confidential treatment that accompanies of the message.) the comment must include the factual OGE Form 278e into its Integrity e-filing Mail, Hand Delivery/Courier: Office of application. Integrity has been in use and legal basis for the request, and must Government Ethics, 1201 New York identify the specific portions of the since January 1, 2015, and OGE now Avenue NW, Suite 500, Attention: Grant requires filers to use a version of the comment to be withheld from the public Anderson, Assistant Counsel, record. See FTC Rule 4.9(c). Your OGE Form 278e rather than the old OGE Washington, DC 20005–3917. Form 278. The version of the Form 278e comment will be kept confidential only Instructions: Comments may be that is produced by Integrity is a if the General Counsel grants your posted on OGE’s website, www.oge.gov. streamlined output report format that request in accordance with the law and Sensitive personal information, such as presents only the filer’s inputs in given the public interest. Once your comment account numbers or Social Security categories and does not report other has been posted publicly at numbers, should not be included. categories not selected by the filer. OGE www.regulations.gov, we cannot redact Comments generally will not be edited also continues to maintain an Excel or remove your comment unless you to remove any identifying or contact version of the form and a 508 compliant submit a confidentiality request that information. PDF version on its website. meets the requirements for such FOR FURTHER INFORMATION CONTACT: OMB Control Number: 3209–0001. treatment under FTC Rule 4.9(c), and Grant Anderson at the U.S. Office of Type of Information Collection: the General Counsel grants that request. Government Ethics; telephone: 202– Extension of a currently approved The FTC Act and other laws that the 482–9318; TTY: 800–877–8339; Email: collection. Commission administers permit the [email protected]. An electronic copy Type of Review Request: Regular. collection of public comments to of the OGE Form 278e is available on Affected Public: Private citizen consider and use in this proceeding, as OGE’s website at https://www.oge.gov. A Presidential nominees to executive appropriate. The Commission will paper copy may also be obtained, branch positions subject to Senate consider all timely and responsive without charge, by contacting Mr. confirmation; other private citizens who public comments that it receives on or Anderson. are potential (incoming) Federal before August 2, 2021. For information SUPPLEMENTARY INFORMATION: employees whose positions are on the Commission’s privacy policy, Title: Executive Branch Personnel designated for public disclosure filing; including routine uses permitted by the Public Financial Disclosure Report. those who file termination reports from Privacy Act, see https://www.ftc.gov/ Agency Form Number: OGE Form such positions after their Government site-information/privacy-policy. 278e. service ends; and Presidential and Vice- Abstract: The OGE Form 278 collects Presidential candidates. Josephine Liu, information from certain officers and Estimated Annual Number of Assistant General Counsel for Legal Counsel. high-level employees in the executive Respondents: 3,196. [FR Doc. 2021–11596 Filed 6–1–21; 8:45 am] branch for conflicts of interest review Estimated Time per Response: 10 BILLING CODE 6750–01–P and public disclosure. The form is also hours.
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Estimated Total Annual Burden: Sensitive personal information, such as the use of information technology). 31,960 hours. account numbers or Social Security Comments received in response to this Request for Comments: OGE is numbers, should not be included. notice will be summarized for, and may publishing this first round notice of its Comments generally will not be edited be included with, the OGE request for intent to request paperwork clearance to remove any identifying or contact extension of OMB paperwork approval. renewal for OGE Form 278e. Public information. The comments will also become a comment is invited specifically on the FOR FURTHER INFORMATION CONTACT: matter of public record. need for and practical utility of this Grant Anderson at the U.S. Office of Approved: May 27, 2021. information collection, the accuracy of Government Ethics; telephone: 202– OGE’s burden estimate, the Emory Rounds, 482–9318; TTY: 800–877–8339; Email: enhancement of quality, utility and Director, U.S. Office of Government Ethics. [email protected]. An electronic copy clarity of the information collected, and [FR Doc. 2021–11553 Filed 6–1–21; 8:45 am] of the OGE Form 450 is available on the minimization of burden (including BILLING CODE 6345–03–P OGE’s website at https://www.oge.gov. A the use of information technology). Comments received in response to this paper copy may also be obtained, notice will be summarized for, and may without charge, by contacting Mr. DEPARTMENT OF HEALTH AND be included with, the OGE request for Anderson. HUMAN SERVICES extension of OMB paperwork approval. SUPPLEMENTARY INFORMATION: The comments will also become a Title: Executive Branch Confidential Centers for Medicare & Medicaid matter of public record. Financial Disclosure Report. Services Approved: May 27, 2021. Agency Form Number: OGE Form [Document Identifier: CMS–10637 and CMS– 450. 10501] Emory Rounds, Abstract: The OGE Form 450 collects Director, U.S. Office of Government Ethics. information from covered department Agency Information Collection [FR Doc. 2021–11551 Filed 6–1–21; 8:45 am] and agency employees as required Activities: Proposed Collection; BILLING CODE 6345–03–P under OGE’s executive branch wide Comment Request regulatory provisions in subpart I of 5 CFR part 2634. The basis for the OGE AGENCY: Centers for Medicare & OFFICE OF GOVERNMENT ETHICS reporting regulation is section 201(d) of Medicaid Services, Health and Human Services (HHS). Agency Information Collection Executive Order 12674 of April 12, 1989 ACTION: Notice. Activities; Information Collection (as modified by Executive Order 12731 of October 17, 1990) and section 107(a) Renewal; Comment Request for OGE SUMMARY: The Centers for Medicare & of the Ethics in Government Act, 5 Form 450 Executive Branch Medicaid Services (CMS) is announcing U.S.C. app. sec. 107(a). OGE maintains Confidential Financial Disclosure an opportunity for the public to the form in three formats on its website: Report comment on CMS’ intention to collect a PDF version, a 508 compliant PDF information from the public. Under the AGENCY: Office of Government Ethics version, and an Excel spreadsheet Paperwork Reduction Act of 1995 (the (OGE). version. OGE seeks renewal of the OGE PRA), federal agencies are required to ACTION: Form 450 without modification. Notice and request for publish notice in the Federal Register comments. OMB Control Number: 3209–0006. Type of Information Collection: concerning each proposed collection of SUMMARY: After this first round notice Extension of a currently approved information (including each proposed and public comment period, the Office collection. extension or reinstatement of an existing of Government Ethics (OGE) plans to Type of Review Request: Regular. collection of information) and to allow request that the Office of Management Affected Public: Prospective 60 days for public comment on the and Budget (OMB) renew its approval Government employees, including proposed action. Interested persons are under the Paperwork Reduction Act for special Government employees, whose invited to send comments regarding our an existing information collection, positions are designated for confidential burden estimates or any other aspect of entitled the OGE Form 450 Executive disclosure filing and whose agencies this collection of information, including Branch Confidential Financial require that they file new entrant the necessity and utility of the proposed Disclosure Report. confidential disclosure reports prior to information collection for the proper DATES: Written comments by the public assuming Government responsibilities. performance of the agency’s functions, and agencies on this proposed extension Estimated Annual Number of the accuracy of the estimated burden, are invited and must be received by Respondents: 30,449. ways to enhance the quality, utility, and August 2, 2021. Estimated Time per Response: 3 clarity of the information to be collected, and the use of automated ADDRESSES: Comments may be hours. submitted to OGE by any of the Estimated Total Annual Burden: collection techniques or other forms of following methods: 91,347 hours. information technology to minimize the Email: [email protected]. (Include Request for Comments: OGE is information collection burden. reference to ‘‘OGE Form 450 paperwork publishing this first round notice of its DATES: Comments must be received by comment’’ in the subject line of the intent to request paperwork clearance August 2, 2021. message.) renewal for the OGE Form 450. Public ADDRESSES: When commenting, please Mail, Hand Delivery/Courier: Office of comment is invited specifically on the reference the document identifier or Government Ethics, 1201 New York need for and practical utility of this OMB control number. To be assured Avenue NW, Suite 500, Attention: Grant information collection, the accuracy of consideration, comments and Anderson, Assistant Counsel, OGE’s burden estimate, the recommendations must be submitted in Washington, DC 20005–3917. enhancement of quality, utility and any one of the following ways: Instructions: Comments may be clarity of the information collected, and 1. Electronically. You may send your posted on OGE’s website, www.oge.gov. the minimization of burden (including comments electronically to http://
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www.regulations.gov. Follow the Information Collection: Marketplace execute the HFPP studies within the instructions for ‘‘Comment or Operations; Use: The data collections HFPP. Form Number: CMS–10501 Submission’’ or ‘‘More Search Options’’ and third-party disclosure requirements (OMB control number: 0938–1251); to find the information collection will assist HHS in determining Frequency: Occasionally; Affected document(s) that are accepting Exchange compliance with Federal Public: Private sector (Business or other comments. standards and monitoring QHP issuers for-profits); Number of Respondents: 28; 2. By regular mail. You may mail in FFEs for compliance with Federal Number of Responses: 28; Total Annual written comments to the following QHP issuer standards. The data Hours: 120. (For questions regarding address: CMS, Office of Strategic collection will also assist HHS in this collection, contact Marnie Dorsey at Operations and Regulatory Affairs, monitoring Web-brokers for compliance (410–786–5942). Division of Regulations Development, with Federal Web-broker standards. The Dated: May 27, 2021. Attention: Document Identifier/OMB data collected by health insurance William N. Parham, III, Control Number: ll, Room C4–26–05, issuers and Exchanges will help to 7500 Security Boulevard, Baltimore, inform HHS, Exchanges, and health Director, Paperwork Reduction Staff, Office insurance issuers as to the participation of Strategic Operations and Regulatory Maryland 21244–1850. Affairs. To obtain copies of a supporting of individuals, employers, and statement and any related forms for the employees in the individual Exchange, [FR Doc. 2021–11591 Filed 6–1–21; 8:45 am] proposed collection(s) summarized in the SHOP, and the premium BILLING CODE 4120–01–P this notice, you may make your request stabilization programs. Form Number: CMS–10637 (OMB control number using one of following: DEPARTMENT OF HEALTH AND 1. Access CMS’ website address at 0938–1353); Frequency: Annually; HUMAN SERVICES website address at https://www.cms.gov/ Affected Public: Private sector (Business Regulations-and-Guidance/Legislation/ or other for-profits); Number of Food and Drug Administration PaperworkReductionActof1995/PRA- Respondents: 3,902; Total Annual Listing.html. Responses: 3,902; Total Annual Hours: [Docket No. FDA–2021–P–0163] 2,336,190. (For policy questions FOR FURTHER INFORMATION CONTACT: Determination That SANDOSTATIN William N. Parham at (410) 786–4669. regarding this collection contact: Nikolas Berkobien at 301–492–4400.) (Octreotide Acetate) Injection, Equal to SUPPLEMENTARY INFORMATION: 2. Type of Information Collection 0.2 Milligrams Base/Milliliter and Equal to 1 Milligrams Base/Milliliter, Was Not Contents Request: Revision of a currently approved collection; Title of Withdrawn From Sale for Reasons of This notice sets out a summary of the Information Collection: Healthcare Safety or Effectiveness use and burden associated with the Fraud Prevention Partnership (HFPP) following information collections. More AGENCY: Food and Drug Administration, Data Sharing and Information Exchange; HHS. detailed information can be found in Use: Section 1128C(a)(2) of the Social ACTION: each collection’s supporting statement Security Act (42 U.S.C. 1320a–7c(a)(2)) Notice. and associated materials (see authorizes the Secretary and the ADDRESSES). SUMMARY: The Food and Drug Attorney General to consult, and arrange Administration (FDA, Agency, or we) CMS–10637 Marketplace Operations for the sharing of data with, CMS–10501 Healthcare Fraud has determined that SANDOSTATIN representatives of health plans for (octreotide acetate) injection, equal to Prevention Partnership (HFPP) Data purposes of establishing a Fraud and Sharing and Information Exchange (EQ) 0.2 milligrams (mg) base/milliliter Abuse Control Program as specified in (mL) and 1 mg base/mL, was not Under the PRA (44 U.S.C. 3501– Section 1128(C)(a)(1) of the Social withdrawn from sale for reasons of 3520), federal agencies must obtain Security Act. The result of this authority safety or effectiveness. This approval from the Office of Management has been the establishment of the HFPP. determination means that FDA will not and Budget (OMB) for each collection of The HFPP was officially established by begin procedures to withdraw approval information they conduct or sponsor. a Charter in the fall of 2012 and signed of abbreviated new drug applications The term ‘‘collection of information’’ is by HHS Secretary Sibelius and US (ANDAs) that refer to this drug product, defined in 44 U.S.C. 3502(3) and 5 CFR Attorney General Holder. In December and it will allow FDA to continue to 1320.3(c) and includes agency requests 2020, President Trump signed into law approve ANDAs that refer to the or requirements that members of the H.R.133—Consolidated Appropriations product as long as they meet relevant public submit reports, keep records, or Act, 2021, which amended Section legal and regulatory requirements. provide information to a third party. 1128C(a) of the Social Security Act (42 Section 3506(c)(2)(A) of the PRA U.S.C. 1320a–7c(a)) providing explicit FOR FURTHER INFORMATION CONTACT: requires federal agencies to publish a statutory authority for the Healthcare Stacy Kane, Center for Drug Evaluation 60-day notice in the Federal Register Fraud Prevention Partnership including and Research, Food and Drug concerning each proposed collection of the potential expansion of the public- Administration, 10903 New Hampshire information, including each proposed private partnership analyses. Ave., Bldg. 51, Rm. 6236, Silver Spring, extension or reinstatement of an existing Data sharing within the HFPP MD 20993–0002, 301–796–8363, collection of information, before primarily focuses on conducting studies [email protected]. submitting the collection to OMB for for the purpose of combatting fraud, SUPPLEMENTARY INFORMATION: In 1984, approval. To comply with this waste, and abuse. These studies are Congress enacted the Drug Price requirement, CMS is publishing this intended to target specific Competition and Patent Term notice. vulnerabilities within the payment Restoration Act of 1984 (Pub. L. 98–417) systems in both the public and private (the 1984 amendments), which Information Collection healthcare sectors. The HFPP and its authorized the approval of duplicate 1. Type of Information Collection committees design and develop studies versions of drug products under an Request: Extension of a currently in coordination with the TTP. The core ANDA procedure. ANDA applicants approved collection; Title of function of the TTP is to manage and must, with certain exceptions, show that
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the drug for which they are seeking SANDOSTATIN (octreotide acetate) Dated: May 26, 2021. approval contains the same active injection, EQ 0.2 mg base/mL and EQ 1 Lauren K. Roth, ingredient in the same strength and mg base/mL, was being discontinued, Acting Principal Associate Commissioner for dosage form as the ‘‘listed drug,’’ which and FDA moved the drug product to the Policy. is a version of the drug that was ‘‘Discontinued Drug Product List’’ [FR Doc. 2021–11575 Filed 6–1–21; 8:45 am] previously approved. ANDA applicants section of the Orange Book. Caplin BILLING CODE 4164–01–P do not have to repeat the extensive Steriles Limited submitted a citizen clinical testing otherwise necessary to petition dated February 5, 2021 (Docket gain approval of a new drug application No. FDA–2021–P–0163), under 21 CFR DEPARTMENT OF HEALTH AND (NDA). 10.30, requesting that the Agency HUMAN SERVICES The 1984 amendments include what is now section 505(j)(7) of the Federal determine whether SANDOSTATIN Health Resources and Services Food, Drug, and Cosmetic Act (21 U.S.C. (octreotide acetate) injection, EQ 0.2 mg Administration 355(j)(7)), which requires FDA to base/mL and EQ 1 mg base/mL, was publish a list of all approved drugs. withdrawn from sale for reasons of Agency Information Collection FDA publishes this list as part of the safety or effectiveness. Activities: Submission to OMB for ‘‘Approved Drug Products With After considering the citizen petition Review and Approval; Public Comment Therapeutic Equivalence Evaluations,’’ and reviewing Agency records and Request; Rural Health Care which is known generally as the based on the information we have at this Coordination Program Performance Improvement and Measurement ‘‘Orange Book.’’ Under FDA regulations, time, FDA has determined under System Database, OMB No. 0906– drugs are removed from the list if the § 314.161 that SANDOSTATIN 0024—Reinstate With Changes Agency withdraws or suspends (octreotide acetate) injection, EQ 0.2 mg approval of the drug’s NDA or ANDA base/mL and EQ 1 mg base/mL, was not AGENCY: Health Resources and Services for reasons of safety or effectiveness or withdrawn for reasons of safety or Administration (HRSA), Department of if FDA determines that the listed drug effectiveness. The petitioner has Health and Human Services (HHS). was withdrawn from sale for reasons of ACTION: safety or effectiveness (21 CFR 314.162). identified no data or other information Notice. suggesting that SANDOSTATIN A person may petition the Agency to SUMMARY: (octreotide acetate) injection, EQ 0.2 mg In compliance with the determine, or the Agency may Paperwork Reduction Act of 1995, base/mL and EQ 1 mg base/mL, was determine on its own initiative, whether HRSA has submitted an Information withdrawn for reasons of safety or a listed drug was withdrawn from sale Collection Request (ICR) to the Office of for reasons of safety or effectiveness. effectiveness. We have carefully Management and Budget (OMB) for This determination may be made at any reviewed our files for records review and approval. Comments time after the drug has been withdrawn concerning the withdrawal of submitted during the first public review from sale, but must be made prior to SANDOSTATIN (octreotide acetate) of this ICR will be provided to OMB. approving an ANDA that refers to the injection, EQ 0.2 mg base/mL and EQ 1 OMB will accept further comments from listed drug (§ 314.161 (21 CFR 314.161)). mg base/mL, from sale. We have also the public during the review and FDA may not approve an ANDA that independently evaluated relevant approval period. does not refer to a listed drug. literature and data for possible SANDOSTATIN (octreotide acetate) DATES: Comments on this ICR should be postmarketing adverse events. We have received no later than July 2, 2021. injection, EQ 0.2 mg base/mL and EQ 1 found no information that would mg base/mL, is the subject of NDA ADDRESSES: Submit your comments, indicate that this drug product was 19667, held by Novartis including the ICR Title, to the desk withdrawn from sale for reasons of Pharmaceuticals Corporation. NDA officer for HRSA, either by email to _ 19667 was initially approved on safety or effectiveness. OIRA [email protected] or by October 21, 1988, and the EQ 0.2 mg Accordingly, the Agency will fax to (202) 395–5806. base/mL and EQ 1 mg base/mL strengths continue to list SANDOSTATIN FOR FURTHER INFORMATION CONTACT: To were approved on June 12, 1991. (octreotide acetate) injection, EQ 0.2 mg request a copy of the clearance requests SANDOSTATIN is indicated to reduce base/mL and EQ 1 mg base/mL, in the submitted to OMB for review, email the blood levels of growth hormone and ‘‘Discontinued Drug Product List’’ HRSA Information Collection Clearance IGF–I (somatomedin C) in acromegaly section of the Orange Book. The Officer at [email protected] or call patients who have had inadequate ‘‘Discontinued Drug Product List’’ (301) 443–1984. response to or cannot be treated with delineates, among other items, drug SUPPLEMENTARY INFORMATION: When surgical resection, pituitary irradiation, products that have been discontinued submitting comments or requesting and bromocriptine mesylate at from marketing for reasons other than information, please include the maximally tolerated doses. safety or effectiveness. FDA will not information request collection title for SANDOSTATIN is also indicated for the begin procedures to withdraw approval reference. symptomatic treatment of patients with Information Collection Request Title: of approved ANDAs that refer to this metastatic carcinoid tumors where it Rural Health Care Coordination Program drug product. Additional ANDAs for suppresses or inhibits the severe Performance Improvement and this drug product may also be approved diarrhea and flushing episodes Measurement System Database, OMB associated with the disease. by the Agency as long as they meet all No. 0906–0024—Reinstate with SANDOSTATIN is also indicated for the other legal and regulatory requirements Changes. treatment of profuse watery diarrhea for the approval of ANDAs. If FDA Abstract: The Rural Health Care associated with vasoactive intestinal determines that labeling for this drug Coordination (Care Coordination) peptide-secreting tumors. product should be revised to meet program is authorized under Section In a letter received by the Agency on current standards, the Agency will 330A(e) of the Public Health Service May 11, 2020, Novartis Pharmaceuticals advise ANDA applicants to submit such (PHS) Act (42 U.S.C. 254(e)), as Corporation notified FDA that labeling. amended, to ‘‘improve access and
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quality of care through the application centered delivery of health care A 60-day notice published in the of care coordination strategies with the services. Federal Register on November 30, 2020, focus areas of collaboration, leadership 2. Leadership and Workforce— vol. 85, No. 230; pp. 76585–86. There and workforce, improved outcomes, and Developing and strengthening a highly were no public comments. skilled care coordination workforce to sustainability in rural communities.’’ Need and Proposed Use of the respond to vulnerable populations’ This authority permits the Federal Information: For this program, unmet needs within the rural Office of Rural Health Policy to support performance measures were drafted to communities. rural health consortiums/networks provide data to the program and to aiming to achieve the overall goals of 3. Improved Outcomes—Expanding enable HRSA to provide aggregate improving access, delivery, and quality access and improving care quality and program data required by Congress of care through the application of care delivery, and health outcomes through under the Government Performance and coordination strategies in rural evidence-based model and/or promising Results Act of 1993. These measures communities. practices tailored to meet the local This ICR was discontinued in January populations’ needs. cover the principal topic areas of 2020. HRSA is requesting a 4. Sustainability—Developing and interest to the Office of Rural Health reinstatement with changes as it was strengthening care coordination Policy, including: (a) Access to care; (b) decided to re-compete this pilot program’s financial sustainability by population demographics; (c) staffing; program. establishing effective revenue sources (d) consortium/network; (e) The proposed Rural Health Care such as expanded service sustainability; and (f) project specific Coordination Program draft measures reimbursement, resource sharing, and/or domains. All measures will speak to for information collection reflect contributions from partners at the HRSA’s progress toward meeting the changes to the Clinical Measures section community, county, regional, and state goals set. which was previously in section eight levels. Likely Respondents: The respondents and now currently in section six. The With the continuing shift in the would be recipients of the Rural Health Clinical Measures Section now expands healthcare environment towards Care Coordination Program funding. previous project focus from three provision of value-based care and chronic diseases (i.e., Type 2 diabetes, utilization of reimbursement strategies Burden Statement: Burden in this Congestive Heart Failure, and Chronic through Centers for Medicare and context means the time expended by Obstructive Pulmonary Disease) to an Medicaid Services quality reporting persons to generate, maintain, retain, inclusive list of clinical measures in programs, the latest competitive Rural disclose or provide the information order to reflect a patient’s overall health Health Care Coordination Program requested. This includes the time and well-being as well as the cohort also aligned with this shift. An needed to review instructions; to organizations’ overall improved increased number of sophisticated develop, acquire, install, and utilize outcomes for the project. Proposed applicants leveraging increasingly technology and systems for the purpose revisions also include measures to intricate reporting methodologies for of collecting, validating, and verifying examine key elements cited for a quality, data collection, utilization and information, processing and successful rural care coordination analysis has resulted in an estimate of maintaining information, and disclosing program: (1) Collaboration, (2) burden hours more in line with the and providing information; to train leadership and workforce, (3) improved realities of the health care landscape. In personnel and to be able to respond to outcomes, and (4) sustainability. addition, the total number of responses a collection of information; to search 1. Collaboration—Utilizing a has increased to 10 since the previous data sources; to complete and review collaborative approach to coordinate Notice of Award. This is due to a new the collection of information; and to and deliver health care services through Rural Health Care Coordination Program transmit or otherwise disclose the a consortium, in which member grant cycle with an increased number of information. The total annual burden organizations actively engage in awardees therefore an increased number hours estimated for this ICR are integrated, coordinated, patient- of respondents. summarized in the table below.
TOTAL ESTIMATED ANNUALIZED BURDEN HOURS
Average Number of Number of Total burden per Total burden Form name respondents responses per responses response hours respondent (in hours)
Rural Health Care Coordination Grant Program Measures 10 1 10 3.5 35
Total ...... 10 ...... 10 ...... 35
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HRSA specifically requests comments programs directed at reducing infant DEPARTMENT OF HEALTH AND on: (1) The necessity and utility of the mortality and improving the health HUMAN SERVICES proposed information collection for the status of pregnant women and infants. proper performance of the agency’s The ACIM represents a public-private National Institutes of Health. functions, (2) the accuracy of the partnership at the highest level to estimated burden, (3) ways to enhance provide guidance and focus attention on National Institute of Neurological the quality, utility, and clarity of the the policies and resources required to Disorders and Stroke; Notice of Closed information to be collected, and (4) the address the reduction of infant mortality Meetings use of automated collection techniques and the improvement of the health Pursuant to section 10(d) of the or other forms of information status of pregnant women and infants. Federal Advisory Committee Act, as technology to minimize the information With a focus on life course, the ACIM amended, notice is hereby given of the collection burden. addresses disparities in maternal health following meetings. Maria G. Button, to improve maternal health outcomes, The meetings will be closed to the Director, Executive Secretariat. including preventing and reducing public in accordance with the [FR Doc. 2021–11542 Filed 6–1–21; 8:45 am] maternal mortality and severe maternal morbidity. The ACIM provides advice provisions set forth in sections BILLING CODE 4165–15–P on how best to coordinate myriad 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., federal, state, local, and private as amended. The grant applications and the discussions could disclose DEPARTMENT OF HEALTH AND programs and efforts that are designed confidential trade secrets or commercial HUMAN SERVICES to deal with the health and social problems impacting infant mortality and property such as patentable material, Health Resources and Services maternal health, including and personal information concerning Administration implementation of the Healthy Start individuals associated with the grant program and maternal and infant health applications, the disclosure of which would constitute a clearly unwarranted Meeting of the Advisory Committee on objectives from the National Health invasion of personal privacy. Infant Mortality Promotion and Disease Prevention AGENCY: Health Resources and Services Objectives (i.e., Healthy People 2030). Name of Committee: National Institute of Administration (HRSA), Department of The agenda for the June 22–23, 2021, Neurological Disorders and Stroke Special Emphasis Panel; Music and Health. Health and Human Services (HHS). meeting is being finalized and may Date: June 24, 2021. ACTION: Notice. include the following topics: Discussion Time: 9:00 a.m. to 6:00 p.m. of recommendations by ACIM to the SUMMARY: In accordance with the Agenda: To review and evaluate grant Secretary; updates from HRSA’s applications. Federal Advisory Committee Act, this Maternal and Child Health Bureau, and notice announces that the Advisory Place: National Institutes of Health, other federal agencies; the Centers for Committee on Infant Mortality (ACIM) Neuroscience Center, 6001 Executive Disease Control and Prevention’s has scheduled a public meeting. Boulevard, Rockville, MD 20852 (Virtual Pregnancy Risk Assessment Monitoring Information about ACIM and the agenda Meeting). System survey; and patient-physician Contact Person: W. Ernest Lyons, PhD, for this meeting can be found on the racial concordance in health care. Scientific Review Administrator, Scientific ACIM website at https://www.hrsa.gov/ Agenda items are subject to change as Review Branch, NINDS/NIH/DHHS, advisory-committees/infant-mortality/ Neuroscience Center, 6001 Executive Blvd., index.html. priorities dictate. Refer to the ACIM website for any updated information Suite 3208, MSC 9529, Rockville, MD 20852, DATES: June 22, 2021, 12:00 p.m.–4:00 concerning the meeting. 301–496–4056, [email protected]. p.m. Eastern Time (ET) and June 23, Name of Committee: National Institute of Members of the public will have the 2021, 12:00 p.m.–4:00 p.m. ET. Neurological Disorders and Stroke Special opportunity to provide written or oral ADDRESSES: This meeting will be held Emphasis Panel; Small Vessel VCID comments. Requests to submit a written via webinar. The webinar link and log- Biomarkers Validation Consortium Sites & statement or make oral comments to the in information will be available at Coordinating Center Review (U01 & U24). ACIM’s website before the meeting: ACIM should be sent to Vanessa Lee, Date: June 25, 2021. https://www.hrsa.gov/advisory- using the email address above at least 3 Time: 10:30 a.m. to 6:00 p.m. committees/infant-mortality/index.html. business days prior to the meeting. Agenda: To review and evaluate grant Public participants may submit written applications. FOR FURTHER INFORMATION CONTACT: statements in advance of the scheduled Place: National Institutes of Health, Vanessa Lee, MPH, Acting Designated meeting by emailing [email protected]. Neuroscience Center, 6001 Executive Federal Official, Maternal and Child Oral comments will be honored in the Boulevard, Rockville, MD 20852 (Virtual Health Bureau, HRSA, 5600 Fishers Meeting). Lane, Rockville, Maryland 20857; 301– order they are requested and may be limited as time allows. Contact Person: Mir Ahamed Hossain, 443–0543; or [email protected]. PhD, Scientific Review Officer, Scientific SUPPLEMENTARY INFORMATION: The ACIM Individuals who plan to attend and Review Branch, NINDS/NIH/DHHS, is authorized by section 222 of the need special assistance or another Neuroscience Center, 6001 Executive Blvd., Public Health Service Act (42 U.S.C. reasonable accommodation should Suite 3208, MSC 9529, Rockville, MD 20852, 217a), as amended. The Committee is notify Vanessa Lee at the contact 301–496–9223, [email protected]. governed by provisions of Public Law information listed above at least 10 92–463, as amended, (5 U.S.C. App. 2), business days prior to the meeting. (Catalogue of Federal Domestic Assistance which sets forth standards for the Maria G. Button, Program Nos. 93.853, Clinical Research formation and use of Advisory Related to Neurological Disorders; 93.854, Committees. Director, Executive Secretariat. Biological Basis Research in the The ACIM advises the Secretary of [FR Doc. 2021–11504 Filed 6–1–21; 8:45 am] Neurosciences, National Institutes of Health, HHS on department activities and BILLING CODE 4165–15–P HHS)
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Dated: May 26, 2021. Agenda: To review and evaluate grant Time: 9:00 a.m. to 6:00 p.m. Tyeshia M. Roberson, applications. Agenda: To review and evaluate grant Program Analyst, Office of Federal Advisory Place: National Institutes of Health, applications. Rockledge II, 6701 Rockledge Drive, Committee Policy. Place: National Institutes of Health, Bethesda, MD 20892 (Virtual Meeting). Natcher Building, 45 Center Drive, Bethesda, [FR Doc. 2021–11544 Filed 6–1–21; 8:45 am] Contact Person: Chi-Wing Chow, Ph.D., MD 20892 (Video Meeting). BILLING CODE 4140–01–P Scientific Review Officer, Center for Contact Person: John J. Laffan, Ph.D., Scientific Review, National Institutes of Scientific Review Officer, Office of Scientific Health, 6701 Rockledge Drive, Room 4110, Review, National Institute of General Medical DEPARTMENT OF HEALTH AND Bethesda, MD 20892, (301) 402–3912, Sciences, National Institutes of Health, HUMAN SERVICES [email protected]. Natcher Building, Room 3AN18J, Bethesda, (Catalogue of Federal Domestic Assistance MD 20892, 301–594–2773, laffanjo@ National Institutes of Health Program Nos. 93.306, Comparative Medicine; mail.nih.gov. 93.333, Clinical Research, 93.306, 93.333, Name of Committee: National Institute of Center for Scientific Review; Notice of 93.337, 93.393–93.396, 93.837–93.844, General Medical Sciences Special Emphasis Closed Meetings 93.846–93.878, 93.892, 93.893, National Panel; Review of Postdoctoral T32 training Institutes of Health, HHS) grant applications. Pursuant to section 10(d) of the Dated: May 26, 2021. Date: July 21, 2021. Federal Advisory Committee Act, as Time: 9:30 a.m. to 6:00 p.m. amended, notice is hereby given of the Miguelina Perez, Agenda: To review and evaluate grant following meetings. Program Analyst, Office of Federal Advisory applications. The meetings will be closed to the Committee Policy. Place: National Institutes of Health, public in accordance with the [FR Doc. 2021–11519 Filed 6–1–21; 8:45 am] Natcher Building, 45 Center Drive, Bethesda, MD 20892 (Video Meeting). provisions set forth in sections BILLING CODE 4140–01–P Contact Person: John J. Laffan, Ph.D., 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Scientific Review Officer, Office of Scientific as amended. The grant applications and Review, National Institute of General Medical the discussions could disclose DEPARTMENT OF HEALTH AND Sciences, National Institutes of Health, confidential trade secrets or commercial HUMAN SERVICES Natcher Building, Room 3AN18J, Bethesda, property such as patentable material, MD 20892, 301–594–2773, laffanjo@ and personal information concerning National Institutes of Health mail.nih.gov. individuals associated with the grant National Institute of General Medical (Catalogue of Federal Domestic Assistance Program Nos. 93.375, Minority Biomedical applications, the disclosure of which Sciences; Notice of Closed Meetings would constitute a clearly unwarranted Research Support; 93.821, Cell Biology and invasion of personal privacy. Pursuant to section 10(d) of the Biophysics Research; 93.859, Pharmacology, Federal Advisory Committee Act, as Physiology, and Biological Chemistry Name of Committee: Center for Scientific Research; 93.862, Genetics and Review Special Emphasis Panel; Infectious amended, notice is hereby given of the Developmental Biology Research; 93.88, Diseases, Reproductive Health, Asthma and following meetings. Minority Access to Research Careers; 93.96, Pulmonary Conditions: Infectious Disease The meetings will be closed to the Special Minority Initiatives; 93.859, and Reproductive Epidemiology. public in accordance with the Biomedical Research and Research Training, Date: June 23–24, 2021. provisions set forth in sections National Institutes of Health, HHS) Time: 9:00 a.m. to 6:00 p.m. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Dated: May 26, 2021. Agenda: To review and evaluate grant as amended. The grant applications and applications. Miguelina Perez, the discussions could disclose Place: National Institutes of Health, Program Analyst, Office of Federal Advisory Rockledge II, 6701 Rockledge Drive, confidential trade secrets or commercial Committee Policy. property such as patentable material, Bethesda, MD 20892 (Virtual Meeting). [FR Doc. 2021–11522 Filed 6–1–21; 8:45 am] Contact Person: Lisa Steele, Ph.D., and personal information concerning Scientific Review Officer, PSE IRG, Center for individuals associated with the grant BILLING CODE 4140–01–P Scientific Review, National Institutes of applications, the disclosure of which Health, 6701 Rockledge Drive, Room 3139, would constitute a clearly unwarranted MSC 7770, Bethesda, MD 20892, 301–594– DEPARTMENT OF HEALTH AND 6594, [email protected]. invasion of personal privacy. HUMAN SERVICES Name of Committee: Center for Scientific Name of Committee: National Institute of Review Special Emphasis Panel; PAR Panel: General Medical Sciences Special Emphasis National Institutes of Health Cancer Health Disparities. Panel; Review of applications for the Support Date: June 29, 2021. of Competitive Research (SCORE) Awards. National Human Genome Research Time: 9:00 a.m. to 8:30 p.m. Date: July 12, 2021. Institute; Notice of Closed Meeting Agenda: To review and evaluate grant Time: 10:00 a.m. to 6:00 p.m. applications. Agenda: To review and evaluate grant Pursuant to section 10(d) of the Place: National Institutes of Health, applications. Federal Advisory Committee Act, as Rockledge II, 6701 Rockledge Drive, Place: National Institutes of Health, amended, notice is hereby given of the Bethesda, MD 20892 (Virtual Meeting). Natcher Building, 45 Center Drive, Bethesda, following meeting. Contact Person: Amy L. Rubinstein, Ph.D., MD 20892 (Video Meeting). The meeting will be closed to the Scientific Review Officer, Center for Contact Person: Lisa A. Newman, SCD, public in accordance with the Scientific Review, National Institutes of Scientific Review Officer, Office of Scientific provisions set forth in sections Health, 6701 Rockledge Drive, Room 5152, Review, National Institute of General Medical 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Sciences, National Institutes of Health, 45 MSC 7844, Bethesda, MD 20892, 301–408– as amended. The grant applications and 9754, [email protected]. Center Drive, Room 3AN18A, Bethesda, MD 20814, (301) 435–0965, newmanla2@ the discussions could disclose Name of Committee: Center for Scientific confidential trade secrets or commercial Review Special Emphasis Panel; R15 AREA mail.nih.gov. and REAP: Musculoskeletal, Oral, Skin, Name of Committee: National Institute of property such as patentable material, Rheumatology and Rehabilitation Sciences. General Medical Sciences Special Emphasis and personal information concerning Date: June 30, 2021. Panel; Review of K99/R00 grant applications. individuals associated with the access Time: 12:30 p.m. to 8:30 p.m. Date: July 14, 2021. applications, the disclosure of which
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would constitute a clearly unwarranted Center Drive, Bethesda, MD. 20892, 301– Place: National Institutes of Health, invasion of personal privacy. 827–5320, [email protected]. Rockledge II, 6701 Rockledge Drive, (Catalogue of Federal Domestic Assistance Bethesda, MD 20892 (Virtual Meeting). Name of Committee: Center for Inherited Contact Person: Brian H. Scott, Ph.D., Disease Research Access Committee CIDR Program Nos. 93.375, Minority Biomedical Research Support; 93.821, Cell Biology and Scientific Review Officer, National Institutes Access Committee. of Health, Center for Scientific Review, 6701 Date: July 9, 2021. Biophysics Research; 93.859, Pharmacology, Physiology, and Biological Chemistry Rockledge Drive, Bethesda, MD 20892, (301) Time: 11:30 a.m. to 12:30 p.m. 827–7490, [email protected]. Agenda: To review and evaluate access Research; 93.862, Genetics and applications. Developmental Biology Research; 93.88, (Catalogue of Federal Domestic Assistance Place: National Human Genome Research Minority Access to Research Careers; 93.96, Program Nos. 93.306, Comparative Medicine; Institute, National Institutes of Health, 6700B Special Minority Initiatives; 93.859, 93.333, Clinical Research, 93.306, 93.333, Rockledge Drive, Suite 3100, Room 3185, Biomedical Research and Research Training, 93.337, 93.393–93.396, 93.837–93.844, Bethesda, MD 20892 (Virtual Meeting). National Institutes of Health, HHS) 93.846–93.878, 93.892, 93.893, National Institutes of Health, HHS) Contact Person: Barbara J. Thomas, Ph.D., Dated: May 26, 2021. Scientific Review Officer, Scientific Review Miguelina Perez, Dated: May 26, 2021. Branch, National Human Genome Research Miguelina Perez, Institute, National Institutes of Health, 6700B Program Analyst, Office of Federal Advisory Program Analyst, Office of Federal Advisory Rockledge Drive, Suite 3100, Room 3185, Committee Policy. Committee Policy. Mail Stop Code 6908, Bethesda, MD 20892, [FR Doc. 2021–11514 Filed 6–1–21; 8:45 am] [FR Doc. 2021–11521 Filed 6–1–21; 8:45 am] 301–402–8837, [email protected]. BILLING CODE 4140–01–P (Catalogue of Federal Domestic Assistance BILLING CODE 4140–01–P Program Nos. 93.172, Human Genome Research, National Institutes of Health, HHS) DEPARTMENT OF HEALTH AND HUMAN SERVICES DEPARTMENT OF HEALTH AND David W. Freeman, HUMAN SERVICES Program Analyst, Office of Federal Advisory National Institutes of Health Committee Policy. National Institutes of Health [FR Doc. 2021–11569 Filed 6–1–21; 8:45 am] Center for Scientific Review; Notice of BILLING CODE 4140–01–P Closed Meetings National Institute of Diabetes and Digestive and Kidney Diseases; Notice Pursuant to section 10(d) of the of Closed Meeting DEPARTMENT OF HEALTH AND Federal Advisory Committee Act, as Pursuant to section 10(d) of the HUMAN SERVICES amended, notice is hereby given of the Federal Advisory Committee Act, as following meetings. National Institutes of Health amended, notice is hereby given of the The meetings will be closed to the following meeting. National Institute of General Medical public in accordance with the The meeting will be closed to the Sciences; Notice of Closed Meeting provisions set forth in sections public in accordance with the 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., provisions set forth in sections Pursuant to section 10(d) of the as amended. The grant applications and 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Federal Advisory Committee Act, as the discussions could disclose as amended. The grant applications and amended, notice is hereby given of the confidential trade secrets or commercial the discussions could disclose following meeting. property such as patentable material, confidential trade secrets or commercial The meeting will be closed to the and personal information concerning property such as patentable material, public in accordance with the individuals associated with the grant and personal information concerning provisions set forth in sections applications, the disclosure of which individuals associated with the grant 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., would constitute a clearly unwarranted applications, the disclosure of which as amended. The grant applications and invasion of personal privacy. would constitute a clearly unwarranted the discussions could disclose invasion of personal privacy. confidential trade secrets or commercial Name of Committee: Center for Scientific property such as patentable material, Review Special Emphasis Panel; Small Name of Committee: National Institute of and personal information concerning Business: Cardiovascular and Surgical Diabetes and Digestive and Kidney Diseases Devices. Special Emphasis Panel; NIDDK Research individuals associated with the grant Date: June 29, 2021. Projects Grants. applications, the disclosure of which Time: 1:00 p.m. to 4:00 p.m. Date: June 10, 2021. would constitute a clearly unwarranted Agenda: To review and evaluate grant Time: 12:00 p.m. to 3:00 p.m. invasion of personal privacy. applications. Agenda: To review and evaluate grant applications. Name of Committee: National Institute of Place: National Institutes of Health, Place: National Institutes of Health, Two General Medical Sciences Special Emphasis Rockledge II, 6701 Rockledge Drive, Democracy Plaza, 6707 Democracy Panel; Review of NIGMS Support of Bethesda, MD 20892 (Virtual Meeting). Boulevard, Bethesda, MD 20892 (Telephone Competitive Research (SCORE) Award Contact Person: Jan Li, MD, Ph.D., Conference Call). Applications. Scientific Review Officer, Center for Contact Person: Elena Sanovich, Ph.D., Date: July 9, 2021. Scientific Review, National Institutes of Scientific Review Officer, Review Branch, Time: 10:00 a.m. to 6:00 p.m. Health, 6701 Rockledge Drive, Room 5106, DEA, NIDDK, National Institutes of Health, Agenda: To review and evaluate grant Bethesda, MD 20892, (301) 402–9607, Jan.Li@ Room 7351, 6707 Democracy Boulevard, applications. nih.gov. Bethesda, MD 20892–2542, 301–594–8886, Place: National Institutes of Health, Name of Committee: Center for Scientific [email protected]. Natcher Building, 45 Center Drive, Bethesda, Review Special Emphasis Panel; PAR–20– MD 20892 (Video Meeting). 181: Limited Competition: National Primate This notice is being published less than 15 Contact Person: Manas Chattopadhyay, Research Centers (P51). days prior to the meeting due to the timing Ph.D., Scientific Review Officer, Office of Date: July 1–2, 2021. limitations imposed by the review and Scientific Review, National Institute of Time: 10:00 a.m. to 6:00 p.m. funding cycle. General Medical Sciences, National Institutes Agenda: To review and evaluate grant (Catalogue of Federal Domestic Assistance of Health, Building 45, Room 3AN12N, 45 applications. Program Nos. 93.847, Diabetes,
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Endocrinology and Metabolic Research; Dated: May 26, 2021. Testing (R61/R33 Clinical Trial Not 93.848, Digestive Diseases and Nutrition Tyeshia M. Roberson, Allowed). Research; 93.849, Kidney Diseases, Urology Program Analyst, Office of Federal Advisory Date: June 24, 2021. and Hematology Research, National Institutes Committee Policy. Time: 10:00 a.m. to 5:00 p.m. of Health, HHS) Agenda: To review and evaluate grant [FR Doc. 2021–11546 Filed 6–1–21; 8:45 am] applications. Dated: May 26, 2021. BILLING CODE 4140–01–P Place: National Institute of Allergy and Miguelina Perez, Infectious Diseases, National Institutes of Program Analyst, Office of Federal Advisory Health, 5601 Fishers Lane, Room 3G33B, Committee Policy. DEPARTMENT OF HEALTH AND Rockville, MD 20892 (Virtual Meeting), [FR Doc. 2021–11518 Filed 6–1–21; 8:45 am] HUMAN SERVICES Contact Person: John C. Pugh, Ph.D., Scientific Review Officer, Scientific Review BILLING CODE 4140–01–P National Institutes of Health Program, Division of Extramural Activities, National Institute of Allergy and Infectious Center for Scientific Review; Amended Diseases, National Institutes of Health, 5601 DEPARTMENT OF HEALTH AND Notice of Meeting Fishers Lane, Room 3G33B, Rockville, MD HUMAN SERVICES 20852, (301) 435–2398, pughjohn@ Notice is hereby given of a change in csr.nih.gov. National Institutes of Health the meeting of the Center for Scientific (Catalogue of Federal Domestic Assistance Review Special Emphasis Panel, June Program Nos. 93.855, Allergy, Immunology, National Institute of Allergy and 11, 2021, 02:30 p.m. to June 11, 2021, and Transplantation Research; 93.856, Infectious Diseases; Notice of Closed 06:00 p.m., National Institutes of Health, Microbiology and Infectious Diseases Meeting Rockledge II, 6701 Rockledge Drive, Research, National Institutes of Health, HHS) Bethesda, MD 20892 which was Dated: May 26, 2021. Pursuant to section 10(d) of the published in the Federal Register on Tyeshia M. Roberson, Federal Advisory Committee Act, as May 18, 2021, 86 FR 26928. amended, notice is hereby given of the Program Analyst, Office of Federal Advisory The CSR Special Emphasis Panel; Committee Policy. following meeting. RFA–RM–20–017: Harnessing Data [FR Doc. 2021–11545 Filed 6–1–21; 8:45 am] The meeting will be closed to the Science for Health Discovery and BILLING CODE 4140–01–P public in accordance with the Innovation in Africa—Ethical, Legal and provisions set forth in sections Social Implications Research meeting is 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., being amended to change the end time DEPARTMENT OF HEALTH AND as amended. The grant applications and from 6:00 p.m. to 8:00 p.m. The meeting HUMAN SERVICES the discussions could disclose is closed to the public. confidential trade secrets or commercial Dated: May 26, 2021. National Institutes of Health property such as patentable material, Miguelina Perez, National Institute of Diabetes and and personal information concerning Program Analyst, Office of Federal Advisory individuals associated with the grant Committee Policy. Digestive and Kidney Diseases; Notice of Closed Meeting applications, the disclosure of which [FR Doc. 2021–11520 Filed 6–1–21; 8:45 am] would constitute a clearly unwarranted BILLING CODE 4140–01–P Pursuant to section 10(d) of the invasion of personal privacy. Federal Advisory Committee Act, as Name of Committee: National Institute of amended, notice is hereby given of the Allergy and Infectious Diseases Special DEPARTMENT OF HEALTH AND following meeting. Emphasis Panel; NIAID Clinical Trial HUMAN SERVICES The meeting will be closed to the Implementation Cooperative Agreement (U01 public in accordance with the Clinical Trial Required); NIAID Clinical Trial National Institutes of Health provisions set forth in sections Planning Grants (R34 Clinical Trial Not National Institute of Allergy and 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Allowed). as amended. The grant applications and Date: June 17, 2021. Infectious Diseases; Notice of Closed Time: 11:00 a.m. to 6:00 p.m. Meeting the discussions could disclose Agenda: To review and evaluate grant confidential trade secrets or commercial applications. Pursuant to section 10(d) of the property such as patentable material, Place: National Institute of Allergy and Federal Advisory Committee Act, as and personal information concerning Infectious Diseases, National Institutes of amended, notice is hereby given of the individuals associated with the grant Health, 5601 Fishers Lane, Room 3F58, following meeting. applications, the disclosure of which Rockville, MD 20892 (Virtual Meeting). The meeting will be closed to the would constitute a clearly unwarranted Contact Person: Mario Cerritelli, Ph.D., public in accordance with the invasion of personal privacy. Scientific Review Officer, Scientific Review provisions set forth in sections Name of Committee: National Institute of Program, National Institute of Allergy and 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Infectious Diseases, National Institutes of Diabetes and Digestive and Kidney Diseases as amended. The grant applications and Special Emphasis Panel; Exploratory Centers Health, 5601 Fishers Lane, Room 3F58, the discussions could disclose Rockville, MD 20852, 240–669–5199, (P20) for Benign Urology. confidential trade secrets or commercial Date: July 20, 2021. [email protected]. property such as patentable material, Time: 1:00 p.m. to 3:00 p.m. This notice is being published less than 15 and personal information concerning Agenda: To review and evaluate grant days prior to the meeting due to the timing individuals associated with the grant applications. limitations imposed by the review and Place: National Institutes of Health, Two funding cycle. applications, the disclosure of which would constitute a clearly unwarranted Democracy Plaza, 6707 Democracy (Catalogue of Federal Domestic Assistance Boulevard, Bethesda, MD 20892 (Virtual Program Nos. 93.855, Allergy, Immunology, invasion of personal privacy. Meeting). and Transplantation Research; 93.856, Name of Committee: National Institute of Contact Person: Lan Tian, Ph.D., Scientific Microbiology and Infectious Diseases Allergy and Infectious Diseases Special Review Officer, National Institute of Diabetes Research, National Institutes of Health, HHS) Emphasis Panel; Detection of HIV for Self- and Digestive and Kidney Diseases, National
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Institutes of Health, Bethesda, MD 20892– Dated: May 26, 2021. (NAGPRA) Program (2253), National 5452, 202–821–7210 (mobile), email: tianl@ Tyeshia M. Roberson, Park Service, telephone (202) 354–2201, nih.gov. Program Analyst, Office of Federal Advisory or email [email protected]. (Catalogue of Federal Domestic Assistance Committee Policy. SUPPLEMENTARY INFORMATION: The Program Nos. 93.847, Diabetes, [FR Doc. 2021–11543 Filed 6–1–21; 8:45 am] Committee will meet virtually on June Endocrinology and Metabolic Research; BILLING CODE 4140–01–P 28, 2021; July 7, 2021; July 13, 2021; 93.848, Digestive Diseases and Nutrition July 21, 2021; August 10, 2021; and Research; 93.849, Kidney Diseases, Urology August 19, 2021, from 3:00 p.m. until and Hematology Research, National Institutes DEPARTMENT OF HEALTH AND approximately 6:00 p.m. (Eastern). of Health, HHS) HUMAN SERVICES The agenda for each meeting may Dated: May 26, 2021. include a report from the National National Institutes of Health Miguelina Perez, NAGPRA Program; the discussion of the Program Analyst, Office of Federal Advisory National Institute of Diabetes and Committee Report to Congress; Committee Policy. Digestive and Kidney Diseases; subcommittee reports and discussion; [FR Doc. 2021–11515 Filed 6–1–21; 8:45 am] Amended Notice of Meeting and other topics related to the Committee’s responsibilities under BILLING CODE 4140–01–P Notice is hereby given of a change in section 8 of NAGPRA. In addition, the the meeting of the National Diabetes and agenda may include requests to the DEPARTMENT OF HEALTH AND Digestive and Kidney Diseases Advisory Committee for a recommendation to the HUMAN SERVICES Council, September 01, 2021, 10:00 a.m. Secretary of the Interior that an agreed- to September 02, 2021, 01:45 p.m., upon disposition of Native American National Institutes of Health National Institutes of Health, Two human remains proceed. The meetings Democracy Plaza, 6707 Democracy will be open to the public and there will National Institute of Allergy and Boulevard, Bethesda, MD, 20892 which be time for public comments. Written Infectious Diseases; Notice of Closed was published in the Federal Register comments may be sent to see FOR Meeting on December 28, 2020, 85 FR 84355. FURTHER INFORMATION CONTACT. All The meeting notice is amended to comments received will be provided to Pursuant to section 10(d) of the change the date of the meeting from the Committee. Federal Advisory Committee Act, as September 1–2, 2021 to September 9– Information on joining the virtual amended, notice is hereby given of the 10, 2021. The meeting is to the public. conference by internet or phone will be following meeting. Dated: May 26, 2021. available on the National NAGPRA The meeting will be closed to the Miguelina Perez, Program website at https:// public in accordance with the Program Analyst, Office of Federal Advisory www.nps.gov/orgs/1335/events.htm. provisions set forth in sections Committee Policy. Background 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., [FR Doc. 2021–11516 Filed 6–1–21; 8:45 am] The Committee was established in as amended. The grant applications and BILLING CODE 4140–01–P the discussions could disclose section 8 of the Native American Graves confidential trade secrets or commercial Protection and Repatriation Act of 1990. Information about NAGPRA, the property such as patentable material, DEPARTMENT OF THE INTERIOR and personal information concerning Committee, and Committee meetings is individuals associated with the grant National Park Service available on the National NAGPRA applications, the disclosure of which Program website at https:// [NPS–WASO–NAGPRA–31940; www.nps.gov/orgs/1335/events.htm. would constitute a clearly unwarranted PPWOCRADN0–PCU00RP16.R50000] invasion of personal privacy. The Committee is responsible for Native American Graves Protection monitoring the NAGPRA inventory and Name of Committee: Allergy, Immunology, identification process; reviewing and and Transplantation Research Committee and Repatriation Review Committee Notice of Public Meetings making findings related to the identity (AITC). or cultural affiliation of cultural items, Date: June 24–25, 2021. AGENCY: National Park Service, Interior. or the return of such items; facilitating Time: 10:00 a.m. to 5:00 p.m. ACTION: the resolution of disputes; compiling an Agenda: To review and evaluate grant Meeting notice. inventory of culturally unidentifiable applications. SUMMARY: The National Park Service is human remains that are in the Place: National Institute of Allergy and hereby giving notice that the Native possession or control of each Federal Infectious Diseases, National Institutes of American Graves Protection and Health 5601 Fishers Lane, Room 3G31, agency and museum, and Repatriation Review Committee recommending specific actions for Rockville, MD 20892 (Virtual Meeting). (Committee) will hold six virtual Contact Person: James T. Snyder, Ph.D., developing a process for disposition of meetings as indicated below. Scientific Review Officer, Scientific Review such human remains; consulting with Program, Division of Extramural Activities, DATES: The Committee will meet via Indian tribes and Native Hawaiian National Institute of Allergy and Infectious teleconference on June 28, 2021; July 7, organizations and museums on matters Diseases, National Institutes of Health, 5601 2021; July 13, 2021; July 21, 2021; affecting such tribes or organizations Fishers Lane, Room 3G31, Bethesda, MD August 10, 2021; and August 19, 2021, lying within the scope of work of the 20892–9834, (240) 669–5060, james.snyder@ from 3:00 p.m. until approximately 6:00 Committee; consulting with the nih.gov. p.m. (Eastern). All meetings are open to Secretary of the Interior on the (Catalogue of Federal Domestic Assistance the public. development of regulations to carry out Program Nos. 93.855, Allergy, Immunology, FOR FURTHER INFORMATION CONTACT: NAGPRA; and making and Transplantation Research; 93.856, Melanie O’Brien, Designated Federal recommendations regarding future care Microbiology and Infectious Diseases Officer, National Native American of repatriated cultural items. The Research, National Institutes of Health, HHS) Graves Protection and Repatriation Act Committee’s work is carried out during
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the course of meetings that are open to Before including your address, phone 3750, 3776 East Hammond Ave., Cudahy, the public. number, email address, or other SG100006695 Public Disclosure of Comments: personal identifying information in your Sheboygan County Before including your address, comment, you should be aware that Sheboygan Falls School, 101 School St., telephone number, email address, or your entire comment—including your Sheboygan Falls, SG100006692 other personal identifying information personal identifying information—may in your comments, you should be aware be made publicly available at any time. Vernon County that your entire comment—including While you can ask us in your comment Hillsboro Condensed Milk Company, 206 your personal identifying information— to withhold your personal identifying East Madison St., Hillsboro, SG100006696 may be made publicly available at any information from public review, we Additional documentation has been time. While you can ask us in your cannot guarantee that we will be able to received for the following resources: comment to withhold your personal do so. IOWA identifying information from public Nominations submitted by State or review, we cannot guarantee that we Tribal Historic Preservation Officers: Linn County will be able to do so. Sinclair, Caroline, Mansion (Additional CALIFORNIA Authority: 5 U.S.C. Appendix 2; 25 U.S.C. Documentation), 2160 Linden Dr. SE, 3006. Contra Costa County Cedar Rapids, AD76000780 Winehaven Historic District (Boundary WEST VIRGINIA Alma Ripps, Decrease), Both sides of Stenmark Dr. Chief, Office of Policy. between Drowly Dr. and Grays Cir., Brooke County [FR Doc. 2021–11098 Filed 6–1–21; 8:45 am] Richmond, BC100006694 Hall, Lewis, Mansion (Additional Documentation), (Pleasant Avenue MRA), BILLING CODE 4312–52–P Sonoma County 1300 Pleasant Ave., Wellsburg, Hines House, 301 Chinquapin Ln., Sea AD86001074 Ranch, SG100006689 DEPARTMENT OF THE INTERIOR (Authority: Section 60.13 of 36 CFR part 60) IDAHO National Park Service Dated: May 25, 2021. Butte County Sherry A. Frear, [NPS–WASO–NRNHL–DTS#–32036; Craters of the Moon National Monument Chief, National Register of Historic Places/ PPWOCRADI0, PCU00RP14.R50000] Mission 66 Historic District (National Park National Historic Landmarks Program. Service Mission 66 Era Resources MPS), 18 [FR Doc. 2021–11590 Filed 6–1–21; 8:45 am] National Register of Historic Places; miles west of Arco on US 20/26/93, Arco Notification of Pending Nominations vicinity, MP100006698 BILLING CODE 4312–52–P and Related Actions MONTANA AGENCY: National Park Service, Interior. Lewis and Clark County INTERNATIONAL TRADE ACTION: Notice. Shaw’s Best Factory, 4261⁄2 Harrison Ave., COMMISSION SUMMARY: The National Park Service is Helena, SG100006699 [Investigation No. 337–TA–1249] soliciting electronic comments on the OREGON significance of properties nominated Certain Cellular Signal Boosters, before May 22, 2021, for listing or Jackson County Repeaters, Bi-Directional Amplifiers, related actions in the National Register Holmes, Harry and Eleanor, House, 217 and Components Thereof (I); of Historic Places. South Modoc Ave., Medford, SG100006685 Commission Determination Not To DATES: Comments should be submitted Linn County Review an Initial Determination electronically by June 17, 2021. Mill City Southern Pacific Rail Road (SPRR) Granting a Joint Motion To Terminate ADDRESSES: Comments are encouraged Bridge, Across North Santiam R., Mill City, the Investigation Based on Settlement; to be submitted electronically to SG100006686 Termination of the Investigation National_Register_Submissions@ RHODE ISLAND AGENCY: U.S. International Trade nps.gov with the subject line ‘‘Public Washington County Commission. Comment on
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Commission’s electronic docket (EDIS) settlement would be contrary to the SUPPLEMENTARY INFORMATION: at https://edis.usitc.gov. For help public interest. Id. at 2. No petitions for Background.—On February 5, 2021, accessing EDIS, please email review were filed. the Commission determined that the [email protected]. General The Commission has determined not domestic interested party group information concerning the Commission to review the subject ID. The response to its notice of institution (85 may also be obtained by accessing its investigation is terminated in its FR 69359, November 2, 2020) of the internet server at https://www.usitc.gov. entirety. subject five-year reviews was adequate Hearing-impaired persons are advised The Commission vote for this and that the respondent interested party that information on this matter can be determination took place on May 27, group response was inadequate. The obtained by contacting the 2021. Commission did not find any other Commission’s TDD terminal on (202) The authority for the Commission’s circumstances that would warrant 205–1810. determination is contained in section conducting full reviews.1 Accordingly, 337 of the Tariff Act of 1930, as SUPPLEMENTARY INFORMATION: The the Commission determined that it Commission instituted this investigation amended, 19 U.S.C. 1337, and in Part would conduct expedited reviews on February 25, 2021, based on a 210 of the Commission’s Rules of pursuant to section 751(c)(3) of the complaint filed on behalf of Wilson Practice and Procedure, 19 CFR part Tariff Act of 1930 (19 U.S.C. 1675(c)(3)). Electronics LLC of St. George, Utah 210. For further information concerning (‘‘Wilson’’). 86 FR 11553–554 (Feb. 25, By order of the Commission. the conduct of these reviews and rules 2021). The complaint, as supplemented, Issued: May 27, 2021. of general application, consult the alleged violations of section 337 of the Lisa Barton, Commission’s Rules of Practice and Tariff Act of 1930, as amended, 19 Secretary to the Commission. Procedure, part 201, subparts A and B U.S.C. 1337, based upon the importation (19 CFR part 201), and part 207, [FR Doc. 2021–11594 Filed 6–1–21; 8:45 am] subparts A, D, E, and F (19 CFR part into the United States, the sale for BILLING CODE P importation, and the sale within the 207). United States after importation of Please note the Secretary’s Office will certain cellular signal boosters, INTERNATIONAL TRADE accept only electronic filings at this repeaters, bi-directional amplifiers, and COMMISSION time. Filings must be made through the components thereof by reason of Commission’s Electronic Document infringement of certain claims of U.S. [Investigation Nos. 701–TA–526 and 731– Information System (EDIS, https:// TA–1262 (Review)] Patent Nos. 7,221,967 (‘‘the ’967 edis.usitc.gov). No in-person paper- patent’’); 7,409,186; 7,486,929; based filings or paper copies of any Melamine From China; Scheduling of electronic filings will be accepted until 7,729,669 (‘‘the ’669 patent’’); 7,783,318 Expedited Five-Year Reviews (‘‘the ’318 patent’’); 8,583,033 (‘‘the ’033 further notice. patent’’); 8,583,034; 8,639,180; AGENCY: United States International Staff report.—A staff report 8,755,399; 8,849,187; 8,874,029; and Trade Commission. containing information concerning the 8,874,030. The complaint, as ACTION: Notice. subject matter of the reviews will be supplemented, further alleged that an placed in the nonpublic record on May SUMMARY: industry in the United States exists as The Commission hereby gives 26, 2021, and made available to persons required by the applicable Federal notice of the scheduling of expedited on the Administrative Protective Order Statute. The Commission instituted reviews pursuant to the Tariff Act of service list for these reviews. A public three separate investigations, and 1930 (‘‘the Act’’) to determine whether version will be issued thereafter, defined the scope of the present revocation of the countervailing and pursuant to section 207.62(d)(4) of the investigation as whether there is a antidumping duty orders on melamine Commission’s rules. violation of section 337 based on the from China would be likely to lead to Written submissions.—As provided in allegations of infringement as to the continuation or recurrence of material section 207.62(d) of the Commission’s asserted claims of the ’967, ’669, ’318, injury within a reasonably foreseeable rules, interested parties that are parties and ’033 patents as to the accused time. to the reviews and that have provided products identified in the notice of DATES: February 5, 2021. individually adequate responses to the notice of institution,2 and any party investigation. Id. The notice of FOR FURTHER INFORMATION CONTACT: investigation named as respondents: Nitin Joshi (202–708–1669), Office of other than an interested party to the Cellphone-Mate, Inc. d/b/a SureCall of Investigations, U.S. International Trade reviews may file written comments with Fremont, California and Shenzhen Commission, 500 E Street SW, the Secretary on what determination the SureCall Communication Technology Washington, DC 20436. Hearing- Commission should reach in the Co., Ltd. of Shenzhen, China impaired persons can obtain reviews. Comments are due on or before (collectively, ‘‘SureCall’’). information on this matter by contacting June 2, 2021 and may not contain new On May 12, 2021, Wilson and the Commission’s TDD terminal on 202– factual information. Any person that is SureCall filed a joint motion to 205–1810. Persons with mobility neither a party to the five-year reviews terminate the investigation based on a impairments who will need special nor an interested party may submit a settlement agreement. assistance in gaining access to the brief written statement (which shall not On May 14, 2021, the ALJ issued the Commission should contact the Office contain any new factual information) subject ID granting the joint motion to of the Secretary at 202–205–2000. 1 A record of the Commissioners’ votes is terminate pursuant to Commission Rule General information concerning the available from the Office of the Secretary and at the 210.21(b)(1) (19 CFR 210.21(b)(1)). See Commission may also be obtained by Commission’s website. Order No. 7 at 1–2 (May 14, 2021). The accessing its internet server (https:// 2 The Commission has found the response to its ALJ found that the motion to terminate www.usitc.gov). The public record for notice of institution filed on behalf of Cornerstone Chemical Company, Inc., a domestic producer of complies with the Commission’s rules these reviews may be viewed on the melamine, to be individually adequate. Comments and that there is no evidence that Commission’s electronic docket (EDIS) from other interested parties will not be accepted terminating this investigation by at https://edis.usitc.gov. (see 19 CFR 207.62(d)(2)).
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pertinent to the reviews by June 2, 2021. Commission has determined not to based on a settlement agreement. On However, should the Department of review an initial determination (‘‘ID’’) May 13, 2021, the ALJ issued the subject Commerce (‘‘Commerce’’) extend the (Order No. 9) of the presiding ID granting the joint motion to terminate time limit for its completion of the final administrative law judge (‘‘ALJ’’) the investigation. The ID explained that results of its reviews, the deadline for terminating the investigation based on the parties provided confidential and comments (which may not contain new settlement. The investigation is public versions of the settlement factual information) on Commerce’s terminated. agreement. ID at 2. The parties also final results is three business days after FOR FURTHER INFORMATION CONTACT: stated that there are no other the issuance of Commerce’s results. If Amanda Fisherow, Esq., Office of the agreements, written or oral, express or comments contain business proprietary General Counsel, U.S. International implied, regarding the subject matter of information (BPI), they must conform Trade Commission, 500 E Street SW, this Investigation. Id. The ID concluded with the requirements of sections 201.6, Washington, DC 20436, telephone (202) that termination of the investigation is 207.3, and 207.7 of the Commission’s 205–3179. Copies of non-confidential in the public interest. Id. No petitions rules. The Commission’s Handbook on documents filed in connection with this for review were filed. Filing Procedures, available on the investigation may be viewed on the The Commission has determined not Commission’s website at https:// Commission’s electronic docket (EDIS) to review the subject ID. The www.usitc.gov/documents/handbook_ at https://edis.usitc.gov. For help investigation is terminated. on_filing_procedures.pdf, elaborates accessing EDIS, please email The Commission vote for this upon the Commission’s procedures with [email protected]. General determination took place on May 27, respect to filings. information concerning the Commission 2021. In accordance with sections 201.16(c) may also be obtained by accessing its The authority for the Commission’s and 207.3 of the rules, each document internet server at https://www.usitc.gov. determination is contained in section filed by a party to the reviews must be Hearing-impaired persons are advised 337 of the Tariff Act of 1930, as served on all other parties to the reviews that information on this matter can be amended (19 U.S.C. 1337), and in Part (as identified by either the public or BPI obtained by contacting the 210 of the Commission’s Rules of service list), and a certificate of service Commission’s TDD terminal, telephone Practice and Procedure (19 CFR part must be timely filed. The Secretary will (202) 205–1810. 210). not accept a document for filing without SUPPLEMENTARY INFORMATION: On By order of the Commission. a certificate of service. February 25, 2021, the Commission Issued: May 27, 2021. Determination.—The Commission has instituted this investigation based on a Lisa Barton, determined these reviews are complaint filed by Wilson Electronics Secretary to the Commission. extraordinarily complicated and LLC of St. George, Utah. 86 FR 11552– therefore has determined to exercise its [FR Doc. 2021–11593 Filed 6–1–21; 8:45 am] 53 (Feb. 25, 2021). The complaint, as BILLING CODE 7020–02–P authority to extend the review period by supplemented, alleged violations of up to 90 days pursuant to 19 U.S.C. section 337 of the Tariff Act of 1930, as 1675(c)(5)(B). amended (19 U.S.C. 1337), based on the DEPARTMENT OF JUSTICE Authority: These reviews are being importation into the United States, the conducted under authority of title VII of the sale for importation, or the sale within Executive Office for Immigration Tariff Act of 1930; this notice is published the United States after importation of Review pursuant to section 207.62 of the certain cellular signal boosters, Commission’s rules. repeaters, bi-directional amplifiers, and [OMB Number 1125–0010] By order of the Commission. components thereof by reason of Agency Information Collection Issued: May 26, 2021. infringement of certain claims of eleven Activities; Proposed Collection; Lisa Barton, patents, including U.S. Patent Nos. Comments Requested; Notice of Secretary to the Commission. 7,486,929 (‘‘the ’929 patent’’); 7,409,186 Appeal to the Board of Immigration [FR Doc. 2021–11501 Filed 6–1–21; 8:45 am] (‘‘the ’186 patent’’); 8,755,399 (‘‘the ’399 Appeals From a Decision of a DHS patent’’); and 8,849,187 (‘‘the ’187 BILLING CODE 7020–02–P Officer patent’’). Id. at 11553. The complaint, as supplemented, further alleged that a AGENCY: Executive Office for INTERNATIONAL TRADE domestic industry exists. Id. The Immigration Review, Department of COMMISSION Commission instituted three separate Justice. investigations, and defined the scope of ACTION: 30-Day notice. [Investigation No. 337–TA–1251] the present investigation as whether there is a violation of section 337 based SUMMARY: The Department of Justice Certain Cellular Signal Boosters, (DOJ), Executive Office for Immigration Repeaters, Bi-Directional Amplifiers, on the allegations of infringement as to the asserted claims of the ’929, ’186, Review (EOIR), will be submitting the and Components Thereof (III); following information collection request Commission Determination Not To ’399, and ’187 patents as to the accused products identified in the notice of to the Office of Management and Budget Review an Initial Determination (OMB) for review and approval in Terminating the Investigation Based investigation. Id. The notice of investigation named two respondents: accordance with the Paperwork on Settlement; Termination of the Reduction Act of 1995. This proposed Investigation Cellphone-Mate, Inc. d/b/a SureCall of Fremont, California; and Shenzhen information collection was previously AGENCY: U.S. International Trade SureCall Communication Technology published in the Federal Register on Commission. Co., Ltd. of Shenzhen, China. Id. The March 3, 2021, allowing for a 60-day comment period. ACTION: Notice. Office of Unfair Import Investigations is not named as a party. Id. DATES: Comments are encouraged and SUMMARY: Notice is hereby given that On May 12, 2021, the parties jointly will be accepted for an additional 30 the U.S. International Trade moved to terminate this investigation days until July 2, 2021.
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ADDRESSES: Written comments and Abstract: A party affected by a requires payment of a civil penalty of recommendations for the proposed decision of a DHS Officer may appeal $298,000, and injunctive relief information collection should be sent that decision to the Board, provided that including: (a) Notification of a test plan, within 30 days of publication of this the Board has jurisdiction pursuant to 8 conducting a performance test, and notice to www.reginfo.gov/public/do/ CFR 1003.1(b). The party must complete submitting a test report related to the PRAMain. Find this particular the Form EOIR–29 and submit it to the SSI units; (b) setting and meeting site- information collection by selecting DHS office having administrative specific operating limits; (c) meeting ‘‘Currently under 30-day Review—Open control over the record of proceeding in emission limits and standards, and for Public Comments’’ or by using the order to exercise its regulatory right to demonstrating initial and ongoing appeal. search function. compliance with those limits and 5. An estimate of the total number of If you need a copy of the proposed standards; (d) submitting an initial information collection or additional respondents and the amount of time compliance report; (e) conducting information, please contact Lauren estimated for an average respondent to annual testing; (f) submitting an annual Alder Reid, Assistant Director, Office of respond: It is estimated that 1,664 compliance report; (g) submitting Policy, Executive Office for Immigration respondents complete the form annually Review, 5107 Leesburg Pike, Suite 2500, with an average of 30 minutes per progress reports and semi-annual Falls Church, VA 22041, telephone: response for completion. deviation reports; (j) conducting initial (703) 305–0289. 6. An estimate of the total public and annual air control device burden (in hours) associated with the inspections and performing related SUPPLEMENTARY INFORMATION: Written collection: 832 annual burden hours. repairs; (k) meeting annual operator comments and suggestions from the If additional information is required public and affected agencies concerning training requirements; and, (l) installing contact: Melody Braswell, Department the proposed collection of information a carbon monoxide emissions Clearance Officer, United States are encouraged. Your comments should monitoring system and demonstrating Department of Justice, Justice address one or more of the following compliance with carbon monoxide Management Division, Policy and four points: emission limits. Planning Staff, Two Constitution —Evaluate whether the proposed Square, 145 N Street NE, 3E.405B, The publication of this notice opens collection of information is necessary Washington, DC 20530. a period for public comment on the for the proper performance of the proposed Consent Decree. Comments functions of the Bureau of Justice Dated: May 26, 2021. should be addressed to the Assistant Statistics, including whether the Melody D. Braswell, Attorney General, Environment and information will have practical utility; Department Clearance Officer for PRA, U.S. Natural Resources Division, and should Department of Justice. —Evaluate the accuracy of the agency’s refer to United States v. The estimate of the burden of the [FR Doc. 2021–11527 Filed 6–1–21; 8:45 am] Metropolitan District, D.J. Ref. No. 90– proposed collection of information, BILLING CODE 4410–30–P 5–2–1–12047. All comments must be including the validity of the submitted no later than thirty (30) days methodology and assumptions used; DEPARTMENT OF JUSTICE after the publication date of this notice. —Evaluate whether and if so how the Comments may be submitted either by quality, utility, and clarity of the Notice of Lodging of Proposed email or by mail: information to be collected can be Consent Decree Under the Clean Air enhanced; and Act To submit —Minimize the burden of the collection comments: Send them to: of information on those who are to On May 25, 2021, the Department of respond, including through the use of Justice lodged a proposed Consent By email ...... pubcomment-ees.enrd@ appropriate automated, electronic, Decree (‘‘Consent Decree’’) with the usdoj.gov. mechanical, or other technological United States District Court for the By mail ...... Assistant Attorney General, collection techniques or other forms District of Connecticut in a lawsuit U.S. DOJ—ENRD, P.O. of information technology, e.g., entitled United States v. The Box 7611, Washington, DC 20044–7611. permitting electronic submission of Metropolitan District, Civil Action No. responses. 3:21–cv–0715. In its Complaint, the United States, on During the public comment period, Overview of This Information behalf of the U.S. Environmental the proposed Consent Decree may be Collection Protection Agency (‘‘EPA’’), alleges that examined and downloaded at this 1. Type of Information Collection: The Metropolitan District violated the Justice Department website: https:// Revision and extension of a currently Clean Air Act (the ‘‘CAA’’ or ‘‘Act’’), 42 www.justice.gov/enrd/consent-decrees. approved collection. U.S.C. 7413, by violating the We will provide a paper copy of the 2. The Title of the Form/Collection: requirements for Standards of proposed Consent Decree upon written Notice of Appeal to the Board of Performance for New Sewage Sludge request and payment of reproduction Immigration Appeals from a Decision of Incineration Units, 40 CFR part 60, costs. Please mail your request and a DHS Officer. subpart LLLL. Those alleged violations payment to: Consent Decree Library, 3. The agency form number: EOIR–29 include failing to submit required U.S. DOJ—ENRD, P.O. Box 7611, (OMB 1125–0010). control and monitoring plans, conduct Washington, DC 20044–7611. 4. Affected public who will be asked annual performance tests that comply or required to respond, as well as a brief with the CAA regulations, and achieve Please enclose a check or money order abstract: continuous compliance with operating for $10.00 (25 cents per page Primary: A party who appeals a parameter limits and air pollution decision of a DHS Officer to the Board emission limits from its sewage sludge of Immigration Appeals (Board). incineration (‘‘SSI’’) units. The Other: None. proposed Consent Decree in this case
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reproduction cost), payable to the eliminate background noises. To avoid general public and other Federal United States Treasury. disrupting the meeting, please refrain agencies to take this opportunity to from placing the call on hold if doing so comment on proposed and/or Henry Friedman, will trigger recorded music or other continuing information collections. Assistant Chief, Environmental Enforcement sound. From time to time, the Chair may Section, Environment & Natural Resources DATES: Comments are due by August 2, Division. solicit comments from the public. 2021. [FR Doc. 2021–11523 Filed 6–1–21; 8:45 am] STATUS: Open. ADDRESSES: Written comments and BILLING CODE 4410–15–P MATTERS TO BE CONSIDERED: recommendations for this information 1. Approval of meeting agenda collection should be sent within 60 days 2. Approval of minutes of the Finance of publication of this notice to LEGAL SERVICES CORPORATION Committee’s meeting on April 19, www.reginfo.gov/public/do/PRAMain. 2021 Find this information collection by Sunshine Act Meeting 3. Public comment regarding LSC’s selecting ‘‘Currently under 60-day Fiscal Year 2023 budget request Review—Open for Public Comments’’ or TIME AND DATE: The Legal Services 4. Public comment on other matters by using the search function. Corporation’s (LSC) Board Finance 5. Consider and act on other business FOR FURTHER INFORMATION CONTACT: Committee will meet remotely on 6. Consider and act on adjournment of Requests for additional information or Thursday, June 10, 2021. The meeting meeting copies of the information collection will commence at 2:00 p.m., EDT, CONTACT PERSON FOR INFORMATION: instrument(s) and instructions should continuing until the conclusion of the Jessica Wechter, Board Relations be directed to Claire Little, NASA Committee’s agenda. Coordinator, (202) 295–1626, or Yladrea Clearance Officer, NASA Headquarters, PLACE: Drummond, Special Assistant to the 300 E Street SW, JF0000, Washington, Public Notice of Virtual Remote President, (202) 295–1633. Questions DC 20546 or email claire.a.little@ _ Meeting may be sent by electronic mail to FR nasa.gov. [email protected]. SUPPLEMENTARY INFORMATION: LSC will conduct the June 10, 2021 Accessibility: LSC complies with the meeting virtually via ZOOM. Americans with Disabilities Act and I. Abstract Public Observation: Unless otherwise Section 504 of the 1973 Rehabilitation The National Aeronautics and Space noted herein, the Finance Committee Act. Upon request, meeting notices and Administration (NASA) is committed to meeting will be open to public materials will be made available in effectively performing the Agency’s observation. Members of the public who alternative formats to accommodate communication function in accordance wish to participate virtually may do so individuals with disabilities. with the Space Act Section 203(a)(3) to by following the directions provided Individuals needing other ‘‘provide for the widest practicable and below. accommodations due to disability in Directions for Open Sessions: appropriate dissemination of order to attend the meeting in person or • To join the Zoom meeting by information concerning its activities and telephonically should contact Jessica computer, please click this link. the results there of,’’ and to enhance Wechter at (202) 295–1626 or FR_ Æ public understanding of, and https://lsc-gov.zoom.us/j/ [email protected] at least 2 participation in, the nation’s space 95753297614? business days in advance of the program in accordance with the NASA pwd=YjJIVmRCVEdyTDNT meeting. If a request is made without Strategic Plan. amExUUFzeDZSQT09 advance notice, LSC will make every Æ Meeting ID: 957 5329 7614 effort to accommodate the request but The NASA Serves the Public to Æ Passcode: 150301 Inspire Reach-Out and Engage • cannot guarantee that all requests can be To join the Zoom meeting with one fulfilled. (NSPIREHub) is a one-stop, web-based tap from your mobile phone, please volunteer management system that click dial: Dated: May 26, 2021. streamlines communications, Æ +13017158592, 95753297614# US Stefanie Davis, recruitment and marketing and (Washington, DC) Senior Assistant General Counsel. enhances reporting and management of Æ +13126266799, 95753297614# US [FR Doc. 2021–11534 Filed 5–27–21; 11:15 am] official outreach events. The (Chicago) BILLING CODE 7050–01–P NSPIREHub engages, informs and • To join the Zoom meeting by inspires current docents, employees telephone, please dial one of the (civil servants and contractors), interns following numbers: NATIONAL AERONAUTICS AND and qualified members of the general Æ +1 301 715 8592 US (Washington DC) SPACE ADMINISTRATION public to share NASA’s advancements, Æ challenges and contributions through +1 312 626 6799 US (Chicago) [Notice: 21–032] Æ +1 646 876 9923 US (New York) participation in official outreach (i.e., Æ launch support, special events support +1 408 638 0968 US (San Jose) Name of Information Collection: NASA Æ +1 669 900 6833 US (San Jose) activities, etc.). Æ Serves the Public To Inspire Reach- +1 253 215 8782 US (Tacoma) Out and Engage (NSPIREHub) The NSPIREHub utilizes a multiple Æ +1 346 248 7799 US (Houston) tiered, role-based NAMS provisioning to Æ Meeting ID: 957 5329 7614 AGENCY: National Aeronautics and empower system administrators to Æ Find your local number: https://lsc- Space Administration (NASA). request and collect specific user gov.zoom.us/u/adI2lh1Gkr ACTION: Notice of information collection. information for the purpose of • Once connected to the Zoom coordinating the carrying out of NASA’s meeting, please immediately ‘‘MUTE’’ SUMMARY: The National Aeronautics and official outreach activities. These your telephone/computer microphone. Space Administration, as part of its specific purposes include but are not Members of the public are asked to continuing effort to reduce paperwork limited To: Facilitating pre-event keep their telephones muted to and respondent burden, invites the briefings, onsite and virtual support
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trainings, shadowing opportunities and NATIONAL SCIENCE FOUNDATION June 29, 2021 (Day 2) assignment scheduling. 10:00 a.m.–10:15 a.m. Executive Session The information collected and Proposal Review Panel for Materials protected within the NSPIREHub helps Research; Notice of Meeting (CLOSED) 10:15 a.m.–11:15 a.m. Response to to ensure all outreach support team In accordance with the Federal Advisory members, prior to serving, are equipped Committee Act (Pub. L. 92–463, as amended), Questions: Director and Team with the tools, skills and confidence the National Science Foundation (NSF) 11:15 a.m.–11:45 a.m. Executive necessary to share their stories in announces the following meeting: Session: Discussions (CLOSED) alignment with NASA’s communication NAME AND COMMITTEE CODE: CMMT 11:45 a.m.–11:55 a.m. Break priorities. It also makes possible the OpenKIM Virtual Site Visit (1203). efficient reporting of metric data 11:55 a.m.–12:20 p.m. Executive DATE AND TIME: June 28–29, 2021; Session: Meeting with University relevant to the impact of official 10:00 a.m.–6:00 p.m. outreach on fulfillment of NASA’s Administrators (CLOSED) responsibilities as related to the Space PLACE: NSF, 2415 Eisenhower Avenue, Alexandria, VA 22314 | Virtual. 12:20 p.m.–5:00 p.m. NSF + Site Visit Act, Section 203. Team—Report Writing (CLOSED) TYPE OF MEETING: Part-Open. II. Methods of Collection 5:00 p.m.—6:00 p.m. Review Committee CONTACT PERSON: Dr. Daryl Hess, Electronic. Program Director, Division of Materials Chair Debriefing with OpenKIM Research, National Science Foundation, Director (CLOSED) OpenKIM Team III. Data 2415 Eisenhower Avenue, Room and Review Committee Title: NASA Serves the Public to W 9216, Alexandria, VA 22314; REASON FOR CLOSING: The work being Inspire, Reach-out, and Engage Telephone: (703) 292–4942. reviewed during closed portions of the VolunteerHub (NSPIREHub). PURPOSE OF MEETING: Virtual site visit to virtual site visit include information of OMB Number: provide an evaluation of the progress of a proprietary or confidential nature, Type of Review: New. the projects at the host site for the including technical information; Division of Materials Research at the Affected Public: Individuals. financial data, such as salaries and National Science Foundation. Estimated Annual Number of personal information concerning Activities: 5,250. Agenda individuals associated with the project. These matters are exempt under Estimated Number of Respondents June 28, 2021 (Day 1) 5 U.S.C. 552b(c), (4) and (6) of the per Activity: 3. 10:00 a.m.–10:30 a.m. Executive: Government in the Sunshine Act. Annual Responses: 15,750. Registration and orientation for Dated: May 27, 2021. Estimated Time per Response: 10 Review Committee members minutes. (CLOSED) Crystal Robinson, Estimated Total Annual Burden 10:30 a.m.–10:45 a.m. Introductions and Committee Management Officer. Hours: 2,630. Overview—Daryl W. Hess, Program [FR Doc. 2021–11581 Filed 6–1–21; 8:45 am] Estimated Total Annual Cost: Director, NSF, Division of Materials BILLING CODE 7555–01–P $66,938. Research 10:45 a.m.–12:30 p.m. OpenKIM Project IV. Request for Comments Presentations Part I Comments are invited on: (1) Whether • OpenKIM Introduction & Overview the proposed collection of information • Demonstration is necessary for the proper performance • OpenKIM Progress of the functions of NASA, including • Community Engagement whether the information collected has • Products and Technical practical utility; (2) the accuracy of 12:30 p.m.–1:00 p.m. Discussion: NASA’s estimate of the burden OpenKIM Team, Review Committee (including hours and cost) of the 1:00 p.m.–1:45 p.m. Executive Session: proposed collection of information; (3) Discussions and Lunch (CLOSED) ways to enhance the quality, utility, and 1:45 p.m.–2:45 p.m. OpenKIM Project clarity of the information to be Presentations Part II collected; and (4) ways to minimize the • OpenKIM Management burden of the collection of information • Education, Outreach, Diversity & on respondents, including automated Inclusion collection techniques or the use of other • The Road Ahead: Future OpenKIM forms of information technology. 2:45 p.m.–3:20 p.m. Discussion: Comments submitted in response to OpenKIM Team, Review Committee this notice will be summarized and 3:20 p.m.–3:30 p.m. Break included in the request for OMB 3:30 p.m.–4:00 p.m. Meeting with approval of this information collection. Students and junior collaborators They will also become a matter of 4:00 p.m.–4:45 p.m. Executive Session: public record. Discussion and Follow-up Questions (CLOSED) Lori Parker, 4:45 p.m.–5:00 p.m. Break NASA PRA Clearance Officer. 5:00 p.m.–6:00 p.m. Meeting with [FR Doc. 2021–11526 Filed 6–1–21; 8:45 am] OpenKIM Director and Team: Present BILLING CODE 7510–13–P Questions
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NUCLEAR REGULATORY however, the NRC encourages electronic • Attention: The PDR, where you may COMMISSION comment submission through the examine and order copies of public Federal Rulemaking website: documents, is currently closed. You [Docket Nos. STN 50–456, STN 50–457, 72– • Federal Rulemaking Website: Go to 73, STN 50–454, STN 50–455, 72–68, 50– may submit your request to the PDR via 317, 50–318, 72–8, 50–461, 72–1046, 50–10, https://www.regulations.gov and search email at [email protected] or call 1– 50–237, 50–249, 72–37, 50–333, 72–12, 50– for Docket ID NRC–2021–0099. Address 800–397–4209 or 301–415–4737, 373, 50–374, 72–70, 50–352, 50–353, 72–65, questions about Docket IDs in between 8:00 a.m. and 4:00 p.m. (EST), 50–220, 50–410, 72–1036, 50–171, 50–277, Regulations.gov to Stacy Schumann; Monday through Friday, except Federal 50–278, 72–29, 50–254, 50–265, 72–53, 50– telephone: 301–415–0624; email: holidays. 244, 72–67, 50–272, 50–311, 72–48, 50–289, [email protected]. For technical B. Submitting Comments 72–77, 50–295, 50–304, and 72–1037; NRC– questions, contact the individual listed 2021–0099] in the FOR FURTHER INFORMATION The NRC encourages electronic comment submission through the Braidwood Station, Units 1 and 2; CONTACT section of this document. • Email comments to: Federal Rulemaking website (https:// Byron Station, Unit Nos. 1 and 2; www.regulations.gov). Please include Calvert Cliffs Nuclear Power Plant, [email protected]. If you do not receive an automatic email reply Docket ID NRC–2021–0099 in your Units 1 and 2; Clinton Power Station, comment submission. Unit No. 1; Dresden Nuclear Power confirming receipt, then contact us at 301–415–1677. The NRC cautions you not to include Station, Units 1, 2, and 3; James A. • identifying or contact information that FitzPatrick Nuclear Power Plant; Fax comments to: Secretary, U.S. Nuclear Regulatory Commission at 301– you do not want to be publicly LaSalle County Station, Units 1 and 2; disclosed in your comment submission. Limerick Generating Station, Units 1 415–1101. • Mail comments to: Secretary, U.S. The NRC will post all comment and 2; Nine Mile Point Nuclear Station, Nuclear Regulatory Commission, submissions at https:// Units 1 and 2; Peach Bottom Atomic Washington, DC 20555–0001, ATTN: www.regulations.gov as well as enter the Power Station, Units 1, 2, and 3; Quad Rulemakings and Adjudications Staff. comment submissions into ADAMS. Cities Nuclear Power Station, Units 1 For additional direction on obtaining The NRC does not routinely edit and 2; R. E. Ginna Nuclear Power information and submitting comments, comment submissions to remove Plant; Salem Nuclear Generating see ‘‘Obtaining Information and identifying or contact information. Station, Unit Nos. 1 and 2; Three Mile Submitting Comments’’ in the If you are requesting or aggregating Island Nuclear Station, Unit 1; Zion SUPPLEMENTARY INFORMATION section of comments from other persons for Nuclear Power Station, Units 1 and 2; this document. submission to the NRC, then you should and the Associated Independent Spent inform those persons not to include FOR FURTHER INFORMATION CONTACT: Fuel Storage Installations; identifying or contact information that Consideration of Approval of Transfer Blake A. Purnell, Office of Nuclear Reactor Regulation, U.S. Nuclear they do not want to be publicly of Licenses and Conforming disclosed in their comment submission. Amendments Regulatory Commission, Washington, DC 20555–0001; telephone: 301–415– Your request should state that the NRC does not routinely edit comment AGENCY: Nuclear Regulatory 1380; email: [email protected]. submissions to remove such information Commission. SUPPLEMENTARY INFORMATION: before making the comment ACTION: Application for indirect transfer submissions available to the public or of licenses; opportunity to comment, I. Obtaining Information and entering the comment into ADAMS. request a hearing, and petition for leave Submitting Comments to intervene; extension of comment A. Obtaining Information II. Discussion period. Please refer to Docket ID NRC–2021– On May 3, 2021, the NRC solicited SUMMARY: On May 3, 2021, the U.S. 0099 when contacting the NRC about comments on an application dated Nuclear Regulatory Commission (NRC, the availability of information for this February 25, 2021 (ADAMS Accession the Commission) solicited comments on action. You may obtain publicly No. ML21057A273), as supplemented an application for indirect transfer of available information related to this by letter dated March 25, 2021 (ADAMS licenses in the Federal Register. The action by any of the following methods: Accession No. ML21084A165), filed by • public comment period was originally Federal Rulemaking Website: Go to Exelon Generation Company, LLC scheduled to close on June 2, 2021. The https://www.regulations.gov and search (EGC), on behalf of itself and Exelon for Docket ID NRC–2021–0099. Corporation; Exelon FitzPatrick, LLC; NRC has decided to extend the public • comment period until June 23, 2021, to NRC’s Agencywide Documents Nine Mile Point Nuclear Station, LLC; allow more time for members of the Access and Management System R. E. Ginna Nuclear Power Plant, LLC; public to develop and submit their (ADAMS): You may obtain publicly and Calvert Cliffs Nuclear Power Plant, comments. available documents online in the LLC. The application is seeking NRC ADAMS Public Documents collection at approval of the indirect transfer of DATES: The due date for comments https://www.nrc.gov/reading-rm/ control of Renewed Facility Operating requested in the document published on adams.html. To begin the search, select License Nos. NPF–72 and NPF–77 for May 3, 2021 (86 FR 23437), is extended. ‘‘Begin Web-based ADAMS Search.’’ For Braidwood Station, Units 1 and 2, Comments should be filed no later than problems with ADAMS, please contact respectively; Renewed Facility June 23, 2021. Comments received after the NRC’s Public Document Room (PDR) Operating License Nos. NPF–37 and this date will be considered, if it is reference staff at 1–800–397–4209, 301– NPF–66 for Byron Station, Unit Nos. 1 practical to do so, but the Commission 415–4737, or by email to pdr.resource@ and 2, respectively; Renewed Facility is able to ensure consideration only for nrc.gov. The ADAMS accession number Operating License Nos. DPR–53 and comments received on or before this for each document referenced (if it is DPR–69 for Calvert Cliffs Nuclear Power date. available in ADAMS) is provided the Plant (Calvert Cliffs), Units 1 and 2, ADDRESSES: You may submit comments first time that it is mentioned in this respectively; Facility Operating License by any of the following methods; document. No. NPF–62 for Clinton Power Station,
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Unit No. 1; Facility Operating License reorganized. The name of the new For the Nuclear Regulatory Commission. No. DPR–2 and Renewed Facility ultimate parent company and the Blake A. Purnell, Operating License Nos. DPR–19 and renamed EGC are yet to be determined; Project Manager, Plant Licensing Branch III, DPR–25 for Dresden Nuclear Power therefore, the application refers to these Division of Operating Reactor Licensing, Station, Units 1, 2, and 3, respectively; companies as HoldCo and SpinCo, Office of Nuclear Reactor Regulation. Renewed Facility Operating License No. respectively. The application also [FR Doc. 2021–11528 Filed 6–1–21; 8:45 am] DPR–59 for James A. FitzPatrick Nuclear requests that the NRC consent to the BILLING CODE 7590–01–P Power Plant (FitzPatrick); Renewed indirect transfer of control of the Facility Operating License Nos. NPF–11 licenses for the FitzPatrick, NMP, and and NPF–18 for LaSalle County Station, Ginna facilities (i.e., the reactor units POSTAL REGULATORY COMMISSION Units 1 and 2, respectively; Renewed and associated ISFSIs) to support the [Docket No. N2021–2; Order No. 5900] Facility Operating License Nos. NPF–39 reorganization of EGC. and NPF–85 for Limerick Generating The application, as supplemented, Service Standard Changes Station, Units 1 and 2, respectively; also requests NRC approval to replace Renewed Facility Operating License AGENCY: Postal Regulatory Commission. existing nuclear operating services Nos. DPR–63 and NPF–69 for Nine Mile ACTION: Notice. Point Nuclear Station (NMP), Units 1 agreements and financial support and 2, respectively; Facility Operating agreements associated with the SUMMARY: The Commission is License No. DPR–12 and Subsequent ownership and operation of the Calvert acknowledging a filing by the Postal Renewed Facility Operating License Cliffs, NMP, Ginna, and FitzPatrick Service of its intent to conduct a pre- Nos. DPR–44 and DPR–56 for Peach facilities. The application requests NRC filing conference regarding its proposed Bottom Atomic Power Station, Units 1, approval to transfer the qualified and changes to the service standards for 2, and 3, respectively; Renewed Facility non-qualified trusts for FitzPatrick from First-Class Package Services. This Operating License Nos. DPR–29 and Exelon Generation Consolidation, LLC document informs the public of this DPR–30 for Quad Cities Nuclear Power (a subsidiary of EGC) to New proceeding and the pre-filing Station, Units 1 and 2, respectively; FitzPatrick, LLC. Pursuant to section conference, and takes other Renewed Facility Operating License No. 50.90 of title 10 of the Code of Federal administrative steps. DPR–18 for R. E. Ginna Nuclear Power Regulations, the application, as DATES: Pre-filing conference: June 8, Plant (Ginna); Renewed Facility supplemented, requests amendments to 2021, 1:00 p.m. to 3:00 p.m., Eastern Operating License Nos. DPR–70 and the Calvert Cliffs, Units 1 and 2; NMP, Daylight Time—Virtual Online. DPR–75 for Salem Nuclear Generating Units 1 and 2; and Ginna licenses to ADDRESSES: Submit comments Station, Unit Nos. 1 and 2, respectively; delete conditions referencing the electronically via the Commission’s Renewed Facility License No. DPR–50 Constellation Energy Nuclear Group, Filing Online system at http:// for Three Mile Island Nuclear Station, LLC (a subsidiary of EGC at the time of www.prc.gov. Those who cannot submit Unit 1; Facility Operating License Nos. the proposed transaction) Board and its comments electronically should contact DPR–39 and DPR–48 for Zion Nuclear operating agreement to reflect the the person identified in the FOR FURTHER Power Station (Zion), Units 1 and 2, internal reorganization of EGC described INFORMATION CONTACT section by respectively; Renewed Materials License in the application. telephone for advice on filing No. SNM–2505 for the independent By order dated November 26, 2019 alternatives. spent fuel storage installation (ISFSI) at (ADAMS Accession No. ML19228A130), FOR FURTHER INFORMATION CONTACT: Calvert Cliffs; and the general licenses as modified by orders dated October 21, David A. Trissell, General Counsel, at for the ISFSIs at the other sites 2020, and May 12, 2021 (ADAMS 202–789–6820. (collectively, the licenses). These reactor Accession Nos. ML20259A469 and SUPPLEMENTARY INFORMATION: Pursuant units and associated ISFSIs are ML21110A606, respectively), the NRC to 39 CFR 3020.111(d), on May 25, 2021, collectively referred to as the facilities. authorized the direct transfer of Facility the Postal Service filed a notice of its The NRC is also considering amending Operating License Nos. DPR–39 and intent to conduct a pre-filing conference the licenses for administrative purposes DPR–48 for Zion, Units 1 and 2, regarding its proposed changes to the to reflect the proposed transfer. respectively, and the generally licensed service standards for First-Class Package The application, as supplemented, Zion ISFSI from ZionSolutions, LLC to Services.1 Due to the COVID–19 requests that the NRC consent to the EGC. According to the February 25, pandemic, the conference will be held indirect transfer of control of the 2021, application, the Zion license virtually on June 8, 2021, from 1:00 p.m. licenses to support a proposed transfer will be completed prior to the to 3:00 p.m. Eastern Daylight Time transaction in which Exelon spin transaction. (EDT). See Notice at 1, 3. At this Corporation will transfer its 100 percent The public comment period on this conference, Postal Service ownership of EGC to a newly created action was originally scheduled to close representatives capable of discussing subsidiary that will then be spun off to on June 2, 2021. The NRC has decided the policy rationale for its proposal will Exelon Corporation shareholders, to extend the public comment period be available to educate the public and becoming EGC’s new ultimate parent until June 23, 2021, to allow more time to allow interested persons to provide company. Once the spin transaction is for members of the public to develop feedback to the Postal Service that it can completed, the new ultimate parent and submit their comments. Separately, use to modify or refine its proposal company, EGC, and its subsidiaries will before formally filing a request for an no longer be affiliated with Exelon by order dated May 24, 2021 (ADAMS Accession No. ML21144A125), the Corporation. EGC will remain the same 1 Acting Secretary of the Commission Notice of Pre-Filing Conference, May 25, 2021 Pennsylvania limited liability company (Notice). First-Class Package Services ‘‘is a mailing as before the proposed transaction and extended the time for filing hearing service available for lightweight packages—for retail will continue to own and/or operate the requests and petitions to intervene on mailers, the weight of the package cannot exceed 13 this action until June 14, 2021. ounces; for commercial mailers, the weight of the facilities, as applicable, and hold the package cannot exceed 15.999 ounces.’’ Notice at 1, licenses, but it will be renamed and Dated: May 26, 2021. n.1.
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advisory opinion from the Commission. The Postal Service must file its formal Actuarial Advisory Committee will hold See id. The registration instructions, request for an advisory opinion with the a virtual meeting on June 7, 2021, at which are available at https:// Commission at least 90 days before 9:00 a.m. (Central Daylight Time) on the about.usps.com/what/strategic-plans/ implementing any of the proposed conduct of the 28th Actuarial Valuation delivering-for-america/#conference, changes. 39 CFR 3020.112. This formal of the Railroad Retirement System. The direct interested persons to a website to request must certify that the Postal agenda for this meeting will include a register to participate using Zoom, and Service has made good faith efforts to discussion of the results and state that ‘‘[s]pace is limited. Unless all address the concerns raised at the pre- presentation of the 28th Actuarial available spaces are taken, you will have filing conference and meet other content Valuation. The text and tables that until June 1, 2021, at 5:00 p.m. EDT to requirements. Id. section 3020.113. constitute the Valuation will have been register.’’ After the Postal Service files the formal prepared in draft form for review by the The Commission establishes Docket request for an advisory opinion, the Committee. It is expected that this will No. N2021–2 to consider the Postal Commission will set forth a procedural be the last meeting of the Committee Service’s proposed changes to the schedule and provide additional before publication of the Valuation. service standards for First-Class Package information in a notice and order that The meeting will be open to the Services. In conjunction with the will be published in the Federal public. Persons wishing to submit announcement of its 10-Year Strategic Register. Id. section 3020.110. Before written statements, make oral Plan,2 the Postal Service proposes to issuing its advisory opinion, the presentations, or attend the meeting revise the existing service standards for Commission must provide an should address their communications or First-Class Package Services, which opportunity for a formal, on-the-record notices to Patricia Pruitt would ‘‘generally affect service on a hearing pursuant to 5 U.S.C. 556 and ([email protected]) so that nationwide or substantially nationwide 557. 39 U.S.C. 3661(c). The procedural information on how to join the virtual basis.’’ Notice at 1 (quoting 39 U.S.C. rules in 39 CFR part 3020 apply to meeting can be provided. 3661(b)). The Postal Service asserts that Docket No. N2021–2. Dated: May 27, 2021. its proposed approach would be similar Pursuant to 39 U.S.C. 3661(c) and 39 Stephanie Hillyard, to the changes proposed to Market CFR 3020.111(d), the Commission Secretary to the Board. Dominant First-Class Mail (letter- and appoints Mallory L. Smith to represent flat-shaped mailpieces) in Docket the interests of the general public [FR Doc. 2021–11567 Filed 6–1–21; 8:45 am] N2021–1, because the First-Class (Public Representative) in this BILLING CODE P Package Services service standards proceeding. Pursuant to 39 CFR would also be adjusted to account for 3020.111(d), the Secretary shall arrange additional drive time between origin for publication of this Order in the SECURITIES AND EXCHANGE and destination processing facilities. Federal Register. COMMISSION See Notice at 2. However, the actual It is ordered: [Release No. 34–92033; File Nos. SR–NYSE– service standards that the Postal Service 1. The Commission establishes Docket 2021–14, SR–NYSEAMER–2021–10, SR– proposes to apply to First-Class Package No. N2021–2 to consider the Postal NYSEArca–2021–13, SR–NYSECHX–2021– Services would diverge from those Service’s proposed changes to the 03, SR–NYSENAT–2021–04] proposed for First-Class Mail. See id. service standards for First-Class Package Specifically, the Postal Service states Services. Self-Regulatory Organizations; New that its proposal for First-Class Package 2. The Postal Service shall conduct a York Stock Exchange LLC, NYSE Services would expand the drive time virtual pre-filing conference regarding American LLC, NYSE Arca, Inc., NYSE for the 2-Day service standard to allow its proposal on June 8, 2021, from 1:00 Chicago, Inc., and NYSE National, Inc.; additional drive time to certain p.m. to 3:00 p.m. Eastern Daylight Time. Order Instituting Proceedings To processing facilities. See id. 3. Pursuant to 39 U.S.C. 3661(c) and Determine Whether To Approve or Additionally, within the contiguous 39 CFR 3020.111(d), Mallory L. Smith is Disapprove Proposed Rule Changes United States, the Postal Service states appointed to serve as an officer of the To Amend the Schedule of Wireless that its proposal would narrow the Commission (Public Representative) to Connectivity Fees and Charges To Add scope of the existing 3-Day service represent the interests of the general Circuits for Connectivity Into and Out standard; instead the 4-Day and 5-Day public in this proceeding. of the Data Center in Mahwah, New service standards would apply to certain 4. Pursuant to 39 CFR 3020.111(d), Jersey the Secretary shall arrange for First-Class Package Services traveling May 26, 2021. longer distances between origin and publication of this order in the Federal destination processing facilities. Id. Register. I. Introduction Moreover, within the non-contiguous By the Commission. On February 12, 2021, New York United States and certain territories, the Erica A. Barker, Stock Exchange LLC (‘‘NYSE’’), NYSE Postal Service plans to increase service Secretary. American LLC (‘‘NYSE American’’), standards by up to one day. Id. The NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE Postal Service adds that a 4-Day service [FR Doc. 2021–11517 Filed 6–1–21; 8:45 am] BILLING CODE 7710–FW–P Chicago, Inc. (‘‘NYSE Chicago’’), and standard would apply for certain NYSE National, Inc. (‘‘NYSE National’’) volume, while all other volume to non- (collectively, the ‘‘Exchanges’’) each contiguous destinations would be RAILROAD RETIREMENT BOARD filed with the Securities and Exchange subject to the 5-Day service standard. Id. Commission (‘‘Commission’’), pursuant Actuarial Advisory Committee With to Section 19(b)(1) of the Securities 2 See United States Postal Service, Delivering for Respect to the Railroad Retirement Exchange Act of 1934 (‘‘Exchange Act’’ America: Our Vision and Ten-Year Plan to Achieve or ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Financial Sustainability and Service Excellence, Account; Notice of Public Meeting March 23, 2021, at 53, available at https:// about.usps.com/what/strategic-plans/delivering-for- Notice is hereby given in accordance 1 15 U.S.C. 78s(b)(1). america/assets/USPS_Delivering-For-America.pdf. with Public Law 92–463 that the 2 17 CFR 240.19b–4.
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a proposed rule change to amend their ‘‘Wireless Connectivity Fees and telecommunications service providers schedule of Wireless Connectivity Fees Charges’’ to ‘‘Mahwah Wireless, offer wired circuits into and out of the and Charges (‘‘Fee Schedule’’) to (1) add Circuits, and Non-Colocation Mahwah Data Center.16 The Exchanges circuits for connectivity into and out of Connectivity Fees and Charges.’’ 8 The propose to add to the Fee Schedule the the data center in Mahwah, New Jersey Exchanges expect the proposed changes circuit options offered by IDS to both (‘‘Mahwah Data Center’’); (2) add to be operative 60 days after the colocation Users and NCL Customers to services available to customers of the proposed rule changes become connect into and out of the Mahwah Mahwah Data Center that are not effective.9 Data Center.17 colocation Users; and (3) change the The Exchanges state that they make Specifically, the Exchanges propose to name of the Fee Schedule to ‘‘Mahwah the current proposals solely as a result amend the Fee Schedule to add two Wireless, Circuits, and Non-Colocation of their determination that the different types of circuits, each available Connectivity Fees and Charges.’’ The Commission’s interpretations of the in three different sizes, under the new proposed rule changes were published Act’s definitions of the terms heading ‘‘C. Mahwah Circuits.’’ 18 First, for comment in the Federal Register on ‘‘exchange’’ 10 and ‘‘facility’’ 11 apply to the Exchanges propose to amend the Fee March 4, 2021.3 On April 7, 2021, connectivity services described herein Schedule to add ‘‘Optic Access’’ pursuant to Section 19(b)(2) of the Act,4 that are offered by entities other than circuits, which are circuits that IDS the Commission designated a longer the Exchanges.12 The Exchanges state operates and that customers can use to period within which to either approve that they disagree with the connect between the Mahwah Data the proposed rule changes, disapprove Commission’s interpretations, deny the Center and IDS access centers at six the proposed rule changes, or institute services covered herein are offerings of third-party owned data centers.19 proceedings to determine whether to an ‘‘exchange’’ or a ‘‘facility’’ thereof, Second, the Exchanges propose to disapprove the proposed rule changes.5 and have sought review of the amend the Fee Schedule to add lower- This order institutes proceedings under Commission’s interpretations as latency Optic Low Latency circuits that Section 19(b)(2)(B) of the Exchange Act 6 expressed in the Wireless Approval IDS operates and that customers can use to determine whether to approve or Order in the Court of Appeals for the to connect between the Mahwah Data disapprove the proposed rule changes. District of Columbia Circuit.13 Center and IDS’s Secaucus Access II. Description of the Proposed Rule A. Mahwah Circuits Center or Carteret Access Center.20 The Changes Exchanges propose to add a chart to the According to the Exchanges, Fee Schedule to include these circuits, The Exchanges propose to amend the customers can connect into and out of setting forth each type of service and the Fee Schedule to add services (‘‘NCL the Mahwah Data Center using either associated amounts of initial plus Services’’) and related fees available to wireless connections or wired fiber monthly fees.21 customers of the data center in Mahwah optic circuits.14 Both ICE Data Services Data Center that are not colocation (‘‘IDS’’) 15 and third-party B. Non-Colocation Services Users (‘‘NCL Customers’’), as well as The Exchanges propose to amend the 8 circuits into and out of the Mahwah See id. at 12715–16. Fee Schedule to add several services 9 See id. at 12716. Data Center that are available to both available to NCL Customers as well as 7 10 See 15 U.S.C. 78c(a)(1) (‘‘The term ‘exchange’ colocation Users and NCL Customers. several notes under the new heading ‘‘D. The Exchanges also propose changing means any organization, association, or group of persons, whether incorporated or unincorporated, Non-Colocation (‘‘NCL’’) Services.’’ 22 the name of the Fee Schedule from which constitutes, maintains, or provides a market According to the Exchanges, these are place or facilities for bringing together purchasers the services that IDS offers within the 3 See Securities Exchange Act Release Nos. 91217 and sellers of securities or for otherwise performing (February 26, 2021), 86 FR 12715 (March 4, 2021) with respect to securities the functions commonly Mahwah Data Center that are not (SR–NYSE–2021–14) (‘‘Notice’’); 91218 (February performed by a stock exchange as that term is colocation services.23 26, 2021), 86 FR 12744 (March 4, 2021) (SR– generally understood, and includes the market NYSEAMER–2021–10); 91216 (February 26, 2021), place and the market facilities maintained by such themselves are indirect subsidiaries of ICE. See 86 FR 12735 (March 4, 2021) (SR–NYSEArca–2021– exchange.’’). Wireless Approval Order, supra note 12, at 67045. 13); 91219 (February 26, 2021), 86 FR 12724 (March 11 See 15 U.S.C. 78c(a)(2) (‘‘The term ‘facility’ 16 4, 2021) (SR–NYSECHX–2021–03); and 91215 when used with respect to an exchange includes its See Notice, supra note 3, at 12716. (February 26, 2021), 86 FR 12752 (March 4, 2021) premises, tangible or intangible property whether 17 See id. (SR–NYSENAT–2021–04) (collectively, the on the premises or not, any right to the use of such 18 See id. ‘‘Notices’’). Comments received on the Notices are premises or property or any service thereof for the 19 These data centers include: (1) 111 Eighth available on the Commission’s website at: https:// purpose of effecting or reporting a transaction on an Avenue, New York, NY; (2) 32 Avenue of the www.sec.gov/comments/sr-nyse-2021-14/ exchange (including, among other things, any Americas, New York, NY; (3) 165 Halsey, Newark, srnyse202114.htm. For ease of reference, citations to system of communication to or from the exchange, NJ; (4) Secaucus, NJ (the ‘‘Secaucus Access the Notice(s) are to the Notice for SR–NYSE–2021– by ticker or otherwise, maintained by or with the Center’’); (5) Carteret, NJ (the ‘‘Carteret Access 14. consent of the exchange), and any right of the Center’’); and (6) Weehawken, NJ. Optic Access 4 15 U.S.C. 78s(b)(2). exchange to the use of any property or service.’’). circuits are available in 1 Gb, 10 Gb, and 40 Gb 5 See Securities Exchange Act Release No. 91490 12 See Notice, supra note 3, at 12716; see also sizes. See id. (April 7, 2021), 86 FR 19313 (April 13, 2021). The Securities Exchange Act Release No. 90209 (October 20 Optic Low Latency circuits are available in 1 Commission designated June 2, 2021, as the date by 15, 2020), 85 FR 67044 (October 21, 2020) (SR– Gb, 10 Gb, and 40 Gb sizes. See id. which it should approve, disapprove, or institute NYSE–2020–05, SR–NYSEAMER–2020–05, SR– 21 The proposed types of services and amounts of proceedings to determine whether to disapprove the NYSEArca–2020–08, SR–NYSECHX–2020–02, SR– charges are as follows: Optic Access Circuit—1 Gb proposed rule changes. NYSENAT–2020–03, SR–NYSE–2020–11, SR– ($1,500 initial charge plus $1,500 monthly charge); 6 15 U.S.C. 78s(b)(2)(B). NYSEAMER–2020–10, SR–NYSEArca–2020–15, Optic Access Circuit—10 Gb ($5,000 initial charge 7 See Notice, supra note 3, at 12715. For purposes SR–NYSECHX–2020–05, SR–NYSENAT–2020–08) plus $2,500 monthly charge); Optic Access of the Exchanges’ colocation services, a ‘‘User’’ (‘‘Wireless Approval Order’’). Circuit—40 Gb ($5,000 initial charge plus $6,000 means any market participant that requests to 13 See Notice, supra note 3, at 12716; see also monthly charge); Optic Low Latency Circuit—1 Gb receive colocation services directly from the Intercontinental Exchange, Inc. v. SEC, No. 20–1470 ($1,500 initial charge plus $2,750 monthly charge); Exchanges. See id. at 12715 n.4 (citing Securities (D.C. Cir. 2020). Optic Low Latency Circuit—10 Gb ($5,000 initial Exchange Act Release No. 76008 (September 29, 14 See id. at 12716. charge plus $3,950 monthly charge); and Optic Low 2015), 80 FR 60190 (October 5, 2015) (SR–NYSE– 15 IDS operates through several different Latency Circuit—40 Gb ($5,000 initial charge plus 2015–40)). NCL Customers do not co-locate any Intercontinental Exchange, Inc. (‘‘ICE’’) affiliates, $8,250 monthly charge). See id. equipment in the Mahwah Data Center. See id. at including NYSE Technologies Connectivity, Inc., an 22 See id. 12720 n.10. indirect subsidiary of NYSE. The Exchanges 23 See id.
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1. IDS Network Ports products (‘‘Included Data Products’’) 31 Exchanges state that IDS charges a that it selects.32 monthly recurring fee for connectivity The Exchanges propose to amend the 2. NCL Connectivity to Third Party to a Third Party System, which the Fee Schedule to add services that IDS Exchanges propose to add to their Fee offers enabling NCL Customers to Systems, Data Feeds, Testing and Certification Feeds, and DTCC Schedule.36 The Exchanges propose to connect to the IDS Network in the add a chart to the Fee Schedule setting 24 The Exchanges also propose to amend Mahwah Data Center. The Exchanges forth a description of each type of the Fee Schedule to provide for the describe the ‘‘IDS Network’’ as a wide connectivity service to Third Party connectivity services that IDS offers for area network available in the Mahwah Systems over the IDS Network, along Data Center and other access centers.25 NCL Customers to Third Party Systems, Third Party Data Feeds, third party with the associated amount of monthly The Exchanges propose to add a chart fees per connection.37 to the Fee Schedule setting forth and testing and certification feeds, and 33 describing each type of IDS Network DTCC (each as defined below). The Exchanges also propose to add Port providing NCL Customers access to a. Connectivity to Third Party Systems Note 2, titled ‘‘Note 2: Third Party IDS’s network,26 along with the Systems,’’ to the section of the Fee The Exchanges propose to specify in Schedule titled ‘‘D. Non-Colocation associated amounts of initial plus the Fee Schedule services that IDS offers monthly fees.27 (‘‘NCL’’) Services,’’ which would NCL Customers to access the trading provide that when an NCL Customer and execution services of Third Party The Exchanges also propose to add to purchases a connection that includes markets and other content service the Fee Schedule several notes access to Third Party Systems, it providers (‘‘Third Party Systems’’) for a regarding these services, which they receives access to Third Party Systems fee.34 According to the Exchanges, NCL state are based on General Notes 4, 5, it selects subject to any technical and 6 of the Exchanges’ Price List Customers connect to Third Party 35 provisioning requirements, 28 Systems over the IDS Network. The regarding colocation. Specifically, the authorization, and licensing from such Exchanges propose to add the heading 38 31 Proposed Note 1 provides that these ‘‘Included Third Party System. Proposed Note 2 ‘‘NCL Notes’’ after the tables in the Data Products’’ are as follows: NMS feeds—CTS, also provides that fees for the Third proposed section of the Fee Schedule CQS, and OPRA; NYSE; NYSE American; NYSE Party Systems are charged by the American Options; NYSE Arca; NYSE Arca titled ‘‘D. Non-Colocation (‘‘NCL’’) provider of such Third Party System.39 29 Proposed Note 1, titled Options; NYSE Best Quote and Trades (BQT); NYSE Services.’’ Bonds; NYSE Chicago; and NYSE National. See id. In addition, proposed Note 2 states that ‘‘Note 1: IDS Network,’’ would establish 32 Proposed Note 1 also states that when an NCL the Exchanges are not the exclusive that when an NCL Customer purchases Customer purchases access to the IDS Network, it method to connect to Third Party receives connectivity to any of the Included Data access to the IDS Network, the NCL 40 Products that it selects, subject to any necessary Systems. Customer would receive: (a) The ability technical provisioning requirements, authorization, to access the trading and execution and licensing by the provider of the Included Data connection to a Third Party System is not through systems of the Exchanges (‘‘Exchange Feed. Fees for the Included Data Products are the Exchange’s execution system. See id. charged by the provider of such Included Data Systems’’) as well as of the Global OTC 36 Specifically, when an NCL Customer requests Products. An NCL Customer can change the 30 System (‘‘Global OTC’’); and (b) Included Data Products to which it receives access to a Third Party System, IDS identifies the connectivity to any of the listed data connectivity at any time, subject to authorization applicable third-party market or other content from the provider of such Included Data Product. service provider and the bandwidth connection it Proposed note 1 also states that because access to requires. See id. 24 See id. the IDS Network is not the exclusive method to 37 The Exchanges propose the following monthly 25 See id. connect to the Included Data Products, an NCL fees per connection: 1Mb ($200 per connection 26 A port is connected to a circuit by using a cross Customer does not have to purchase a service that monthly charge); 3Mb ($400 per connection connect. See id. at 12720; see also infra note 65 and includes access to the IDS Network to connect to monthly charge); 5Mb ($500 per connection accompanying text. such Included Data Products. See id. monthly charge); 10Mb ($800 per connection 27 The proposed types of services and the 33 The Exchanges state that they propose to adopt monthly charge); 25Mb ($1,200 per connection Exchanges’ descriptions of them, along with the substantially similar services and fees as set forth monthly charge); 50Mb ($1,800 per connection associated amounts of initial plus monthly fees, are in the Exchanges’ Price List regarding colocation. monthly charge); 100Mb ($2,500 per connection as follows: NCL IDS Network Access—10 Gb, a 10 See id. (citing Securities Exchange Act Release No. monthly charge); 200Mb ($3,000 per connection Gb IDS Network port ($10,000 initial charge plus 80311 (March 24, 2017), 82 FR 15749 (March 30, monthly charge); and 1Gb, $3,500 per connection $15,250 monthly charge); and NCL IDS Network 2017) (SR–NYSE–2016–45)). monthly charge. See id. at 12717–18. Access—40 Gb, a 40 Gb IDS Network port ($10,000 34 See id. 38 See id. at 12718. initial charge plus $19,750 monthly charge). See 35 The Exchanges state that in order to obtain 39 See id. Notice, supra note 3, at 12716–17. access to a Third Party System, an NCL Customer 40 Proposed Note 2 would further provide that 28 See id. at 12717. enters into an agreement with the relevant third- these ‘‘The Third Party Systems’’ are as follows: 29 See id. party content service provider, pursuant to which American Trading Group (ATG); BM&F Bovespa; the third-party content service provider charges the 30 Boston Options Exchange (BOX), Canadian Proposed Note 1 states that when an NCL NCL Customer for access to the Third Party System. Securities Exchange (CSE); Cboe BYX Exchange Customer purchases access to the IDS Network, it When such services are requested, IDS establishes (CboeBYX), Cboe BZX Exchange (CboeBZX), Cboe receives the ability to access the trading and a connection between the NCL Customer and the execution systems of the NYSE, NYSE American, relevant third party content service provider over EDGA Exchange (CboeEDGA), and Cboe EDGX NYSE Arca, NYSE Chicago, and NYSE National the IDS Network. IDS charges the NCL Customer for Exchange (CboeEDGX); Cboe Exchange (Cboe) and (together, the Exchange Systems) as well as of the connectivity to the Third Party System. An NCL Cboe C2 Exchange (C2); Chicago Mercantile Global OTC (the Global OTC System), subject, in Customer only receives, and is only charged by IDS Exchange (CME Group); Credit Suisse; Euronext each case, to authorization by the NYSE, NYSE for, connectivity to each Third Party System for Optiq Cash and Derivatives Unicast (EUA); American, NYSE Arca, NYSE Chicago, NYSE which the customer enters into an agreement with Euronext Optiq Cash and Derivatives (Production); National, or Global OTC, as applicable. Proposed the third-party content service provider. According Investor Exchange (IEX); ITG TriAct Matchnow; Note 1 also states that each Exchange listed above to the Exchanges, neither the Exchanges nor IDS has Long Term Stock Exchange (LTSE); Members offers access to its Exchange Systems to its members an affiliation with the providers of the Third Party Exchange (MEMX); MIAX Options, MIAX PEARL and Global OTC offers access to the Global OTC Systems. Establishing an NCL Customer’s access to Options, MIAX PEARL Equities, and MIAX System to its subscribers, such that an NCL a Third Party System does not give either IDS or Emerald; Morgan Stanley; Nasdaq; NASDAQ Customer does not have to purchase a service that the Exchanges any right to use the Third Party Canada (CXC, CXD, CX2); NASDAQ ISE; Neo includes access to the IDS Network to obtain access Systems. Connectivity to a Third Party System does Aequitas; NYFIX Marketplace; Omega; OneChicago; to Exchange Systems or the Global OTC System. See not provide access or order entry to the Exchange’s OTC Markets Group; TD Ameritrade; and TMX id. execution system, and an NCL Customer’s Group. See id.
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b. Connectivity to Third Party Data such parties generally receive their own exclusive method to connect to Third Feeds feeds for purposes of diagnostics and Party Data Feeds.51 testing.46 The Exchanges propose to add The Exchanges propose to specify in c. Connectivity to Third Party Data a chart to the Fee Schedule setting forth the Fee Schedule connectivity services Testing and Certification Feeds that IDS offers NCL Customers to a description of each type of The Exchanges propose to specify in connect to data feeds from third-party connectivity service to Third Party the Fee Schedule that NCL Customers markets and other content service Feeds over the IDS Network, along with may obtain connectivity to third-party providers (‘‘Third Party Data Feeds’’) for the associated amount of monthly 47 testing and certification feeds.52 a fee.41 According to the Exchanges, fees. According to the Exchanges, NCL Customers connect to Third Party The Exchanges also propose to add certification feeds are used to certify Data Feeds over the IDS Network.42 Note 3, titled ‘‘Note 3: Third Party The Exchanges state that IDS charges Systems,’’ to the section of the Fee that an NCL Customer conforms to any a monthly recurring fee for connectivity Schedule titled ‘‘D. Non-Colocation of the relevant content service to each Third Party Data Feed.43 Third (‘‘NCL’’) Services.’’ 48 Proposed Note 3 provider’s requirements for accessing Party Data Feed providers may charge would provide that pricing for data Third Party Systems or receiving Third redistribution fees.44 The Exchanges feeds from third party markets and other Party Data Feeds, while testing feeds propose that, when IDS is charged a service providers (Third Party Data would provide NCL Customers an redistribution fee by the Third Party Feeds) is for connectivity only, which is environment in which to conduct tests 53 Data Feed provider, IDS would pass subject to any technical provisioning with non-live data. The Exchanges through the charge to the NCL requirements, authorization, and state that such feeds, which are solely Customer, without change to the fee.45 licensing from the provider of the data used for certification and testing and do In addition, the Exchanges propose they feed, and is over the IDS Network.49 not carry live production data, are it would not charge NCL Customers that Proposed Note 3 would also state that available over the IDS Network.54 The are third-party markets or content fees for Third Party Data Feeds are Exchanges propose to add a $100 providers for connectivity to their own charged by the provider of such data monthly recurring charge per feed for feeds, as the Exchanges maintain that feeds,50 as well as that IDS is not the connectivity to Third Party Testing and Certification Feeds to the Fee 55 41 See id. 46 See id. Schedule. 42 47 The proposed descriptions of these services The Exchanges state that IDS receives Third d. Connectivity to DTCC Party Data Feeds from multiple national securities and associated amount of monthly fees are as exchanges and other content service providers at follows: BM&F Bovespa ($3,000); Boston Options The Exchanges propose to specify in the Mahwah Data Center, and provides connectivity Exchange (BOX) ($1,000); Canadian Securities the Fee Schedule services that IDS to that data to NCL Customers for a fee. According Exchange (CSE) ($1,000); Cboe BZX Exchange to the Exchanges, in order to connect to a Third (CboeBZX) and Cboe BYX Exchange (CboeBYX) provides to connect NCL Customers to Party Data Feed, an NCL Customer enters into a ($2,000); Cboe EDGX Exchange (CboeEDGX) and Depository Trust & Clearing Corporation contract with the relevant third-party market or Cboe EDGA Exchange (CboeEDGA) ($2,000); Cboe (‘‘DTCC’’) for clearing, fund transfer, other content service provider, pursuant to which Exchange (Cboe) and Cboe C2 Exchange (C2) insurance, and settlement services.56 the content service provider charges the NCL ($2,000); CME Group ($3,000); Euronext Optiq Customer for the Third Party Data Feed. IDS Compressed Cash ($900); Euronext Optiq IDS charges the NCL Customer for the receives the Third Party Data Feed over its fiber Compressed Derivatives ($600); Euronext Optiq connectivity to DTCC.57 The Exchanges optic network and, after the data provider and NCL Shaped Cash ($1,200); Euronext Optiq Shaped Customer enter into an agreement and IDS receives Derivatives ($900); Financial Industry Regulatory IDS does not charge third party markets or content authorization from the data provider, IDS Authority (FINRA) ($500); Global OTC ($100); ICE providers for connectivity to their own feeds. See retransmits the data to the NCL Customer over the Data Services Consolidated Feed ≤100 Mb ($200); id. NCL Customer’s IDS Network port. IDS charges the ICE Data Services Consolidated Feed >100 Mb to ≤1 51 NCL Customer for the connectivity to the Third Gb ($500); ICE Data Services Consolidated Feed >1 See id. Party Data Feed. An NCL Customer only receives, Gb ($1,000); ICE Data Services Consolidated Feed 52 See id. and is only charged for, connectivity to the Third Shared Farm ≤100Mb ($200); ICE Data Services 53 See id. Party Data Feeds for which it entered into contracts. Consolidated Feed Shared Farm >100 Mb to ≤1 Gb 54 The Exchanges state that connectivity to third With the exception of the IDS, ICE, and Global OTC ($500); ICE Data Services Consolidated Feed Shared party testing and certification feeds would be feeds, neither the Exchanges nor IDS has any Farm >1 Gb ($1,000); ICE Data Services—ICE TMC subject to any technical provisioning requirements, affiliation with the sellers of the Third Party Data ($200); ICE Data Services PRD ($200); ICE Data authorization, and licensing from the provider of Feeds. The Exchanges and IDS have no right to use Services PRD CEP ($400); Intercontinental the data feed; fees for such feeds are charged by the the Third Party Data Feeds other than as a Exchange (ICE) ($1,500); Investors Exchange (IEX) provider of the feed; and the Exchanges are not the redistributor of the data. The Third Party Data ($1,000); ITG TriAct Matchnow ($1,000); Members exclusive method to connect to third-party testing Feeds do not provide access or order entry to the Exchange (MEMX) ($3,000); MIAX Emerald and certification feeds. See id. Exchange’s execution system. With the exception of ($3,500); MIAX Options/MIAX PEARL Options 55 See id. the ICE feed, the Third Party Data Feeds do not ($2,000); MIAX PEARL Equities ($2,500); Montre´al 56 According to the Exchanges, in order to provide access or order entry to the execution Exchange (MX) ($1,000); MSCI 5 Mb ($500); MSCI connect to DTCC, an NCL Customer enters into a systems of the third party generating the feed. The 25 Mb ($1,200); NASDAQ Stock Market ($2,000); contract with DTCC, pursuant to which DTCC Exchanges further represent that IDS receives Third NASDAQ OMX Global Index Data Service ($100); charges the NCL Customer for the services Party Data Feeds via arms-length agreements and NASDAQ UQDF & UTDF ($500); NASDAQ Canada provided. IDS receives the DTCC feed over its fiber has no inherent advantage over any other (CXC, CXD, CX2) ($1,500); NASDAQ ISE ($1,000); optic network and, after DTCC and the NCL distributor of such data. See id. Neo Aequitas ($1,200); Omega ($1,000); OneChicago Customer entered into the services contract and IDS 43 The monthly recurring fee is per Third Party ($1,000); OTC Markets Group ($1,000); Vela— received authorization from DTCC, IDS provides Data Feed, with the exception that the monthly SuperFeed <500 Mb ($250); Vela—SuperFeed >500 connectivity to DTCC to the NCL Customer over the recurring fee for the ICE Data Services Consolidated Mb to <1.25 Gb ($800); Vela—SuperFeed >1.25 Gb NCL Customer’s IDS Network port. The Exchanges Feeds (including the ICE Data Services ($1,000); and TMX Group ($2,500). See id. at state that connectivity to DTCC does not provide Consolidated Feed Shared Farm feeds), Vela— 12718–19. access or order entry to the Exchanges’ execution SuperFeeds, and MSCI feeds vary by the bandwidth 48 See id. at 12719. systems, and an NCL Customer’s connection to of the connection. According to the Exchanges, 49 See id. DTCC is not through the Exchanges’ execution depending on its needs and bandwidth, an NCL 50 Proposed Note 3 further provides that Third systems. See id. at 12719–20. Customer may opt to receive all or some of the Party Data Feed providers may charge redistribution 57 The Exchanges state that connectivity to DTCC Third Party Data Feeds. See id. fees, and that when IDS is charged a redistribution is subject to any technical provisioning 44 See id. fee, IDS passes the charge through to the customer, requirements, authorization, and licensing from 45 The fee would be labeled as a pass-through of without change to the fee. The fee is labeled as a DTCC; fees for such feeds are charged by DTCC; and a redistribution fee on the NCL Customer’s invoice. pass-through of a redistribution fee on the IDS is not the exclusive provider to connect to See id. customer’s invoice. Proposed Note 3 also states that DTCC feeds. See id. at 12720.
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propose to add a $500 monthly use such cross connects to connect from Exchanges propose to add a $950 per recurring charge for a 5 Mb connection the IDS Network or NMS Network to a request charge to change an NCL service to DTCC and a $2,500 monthly recurring circuit connecting outside the Mahwah that has already been installed/ charge for a 10 Mb connection to DTCC Data Center.65 According to the completed for a customer to the Fee to the Fee Schedule.58 Exchanges, the proposed fees for this Schedule.72 service would be identical to the fees for 3. NCL NMS Network Ports C. Fee Schedule Name the corresponding service in The Exchanges propose to amend the colocation.66 The Exchanges propose to Finally, the Exchanges propose Fee Schedule to add services that IDS add a $500 initial charge plus a $600 change the name of the Fee Schedule currently offers enabling NCL monthly charge to furnish and install from ‘‘Wireless Connectivity Fees and Customers to connect to the NMS feeds one NCL Cross Connect to the Fee Charges’’ to ‘‘Mahwah Wireless, for which the Securities Industry Schedule.67 Circuits, and Non-Colocation Automation Corporation is engaged as Connectivity Fees and Charges,’’ since the securities information processor (the 5. NCL Expedite Fee the Fee Schedule will no longer be ‘‘NMS Network’’) in the Mahwah Data The Exchanges propose to amend the limited to wireless services.73 59 Fee Schedule to specify optional Center. The Exchanges propose to add III. Exchanges’ Justification and services that IDS offers NCL Customers a chart to the Fee Schedule setting forth Comments Received and describing each type of NCL NMS to expedite the completion of services Network Port providing NCL Customers purchased or ordered by the NCL The Exchanges generally argue that access to the NCL NMS Network, along Customer, for which IDS charges an the proposed rule changes are with the associated amounts of initial ‘‘Expedite Fee.’’ 68 If an NCL Customer reasonable, equitable, and not unfairly plus monthly fees.60 wishes to obtain NCL Services earlier discriminatory because use of the The Exchanges also propose to add than the expected completion date, the proposed services is completely Note 4, titled ‘‘Note 4: NMS Network,’’ NCL Customer may pay the Expedite voluntary and alternatives to them are to the section of the Fee Schedule titled Fee.69 The Exchanges propose to add a available.74 According to the Exchanges, ‘‘D. Non-Colocation (‘‘NCL’’) Services,’’ $4,000 per request charge for expedited IDS operates in a highly competitive establishing that when an NCL installation/completion of a customer’s market in which exchanges, third party Customer purchases an NMS Network NCL service to the Fee Schedule.70 telecommunications providers, Hosting Users,75 and other third-party vendors port, it has the option of receiving the 6. NCL Change Fee NMS feeds over the NMS Network.61 offer connectivity services as a means to Proposed Note 4 would provide that The Exchanges propose to amend the facilitate the trading and other market 76 when an NCL Customer purchases Fee Schedule to specify the ‘‘Change activities of market participants. With access to the NMS Network, upon its Fee’’ that IDS charges an NCL Customer these proposals, the Exchanges assert request, it will receive connectivity to if the NCL Customer requests a change that market participants would have any of the NMS feeds that it selects, to one or more existing NCL Services more choices with respect to the form subject to any necessary technical that IDS has already established or and price of the services they use, 71 provisioning requirements, completed for the NCL Customer. The allowing market participants to select authorization, and licensing from the the services and connectivity options 65 provider of such NMS feed.62 Proposed See id. at 12720. that better suit their needs, thereby 66 See id. Note 4 would also state that fees for the helping them tailor their connectivity 67 See id. operations to the requirements of their NMS feeds are charged by the provider 68 According to the Exchanges, the proposed fees businesses.77 In any case, the Exchanges of such NMS feed.63 would be similar to the ‘‘Expedite Fee’’ applicable to Users in colocation. See id. (citing Securities state that there are currently few NCL 4. NCL Cross Connect Exchange Act Release No. 67666 (August 15, 2012), Customers, and thus expect that the The Exchanges propose to amend the 77 FR 50742 (August 22, 2012) (SR–NYSE–2012– 18). through submitting an order form requesting Fee Schedule to specify fiber cross 69 The Exchanges state that the time saved would multiple services), the NCL Customer would be connect services that IDS offers NCL vary depending on the type(s) of service(s) ordered, charged a one-time Change Fee of $950, which Customers for an initial and monthly but the Expedite Fee would always be a flat $4,000, would cover the multiple services. See id. at 12720– charge.64 A cross connect is used to allowing the NCL Customer to determine if the 21. expected time savings warrants payment of the fee. 72 See id. at 12721. connect a circuit to a port, the See id. 73 See id. Exchanges state, and NCL Customers 70 See id. 74 See id. 71 The Exchanges state that several of the 75 ‘‘Hosting’’ is a service offered by a User to 58 See id. proposed services that would be added to the Fee another entity in the User’s space within the 59 See id. Schedule include an initial fee in addition to an ongoing monthly fee. These initial fees are related Mahwah Data Center. The Exchanges allow Users 60 The Exchanges propose a $10,000 initial charge to act as Hosting Users for a monthly fee. See id. plus $11,000 monthly charge for a 10 Gb NCL NMS to IDS’s initial cost of establishing or installing a particular service for the NCL Customer. IDS (citing Securities Exchange Act Release No. 76008 Network port, and a $10,000 initial charge plus charges a fee of $950 per order if the NCL Customer (September 29, 2015), 80 FR 60190 (October 5, $18,000 monthly charge for a 40 Gb NCL NMS requests a change to one or more existing NCL 2015) (SR–NYSE–2015–40)). Network port. See id. Services that IDS has already established or 76 See id. In this regard, the Exchanges maintain 61 See id. completed for the NCL Customer. According to the that most of the third-party telecommunications 62 Proposed Note 4 would further provide that Exchanges, this is similar to the ‘‘Change Fee’’ providers that provide circuits do so at fees lower these NMS feeds are as follows: CTS; CQS; and applicable to Users in colocation. For example, the than those proposed herein, and that most NCL OPRA. See id. initial installation of an IDS Network connection Customers and colocation Users use such third 63 See id. would include establishing and configuring market party telecommunication circuits into and out of 64 See id. According to the Exchanges, because data services requested by the NCL Customer, the Mahwah Data Center. See id. at 12722. NCL Customers do not co-locate any equipment in which would be covered by the initial install fee. 77 See id. at 12723. More generally, the Exchanges the Mahwah Data Center, they generally require However, if the NCL Customer requests that IDS maintain that market participants consider various fewer fiber cross connects than colocation Users. establish and configure additional market data factors in determining which connectivity options Hence, the Exchanges do not propose amending the services for its IDS Network connection, the NCL to choose, including latency; bandwidth size; Fee Schedule to include bundles of 6, 12, 18, or 24 Customer would be charged a one-time Change Fee amount of network uptime; the equipment that the cross connects as are available to colocation Users. of $950 for that request. If an NCL Customer orders network uses; the cost of the connection; and the See id. at 12720 n.10. two or more services at one time (for example, applicable contractual provisions. See id. at 12722.
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impact of the proposals would be rule changes.87 This commenter argues IDS may be able to provide that third minimal.78 that the Exchanges have failed to parties cannot.93 With respect to the competitive demonstrate that the proposed rule Moreover, the commenter argues that environment, the Exchanges maintain changes are consistent with the Act.88 the Exchanges have not provided any generally that the proposed rule changes The commenter asserts that the quantitative or other specific are reasonable because the proposed proposals are not transparent as to information to support their argument fees are constrained by competition.79 In whether they are only prospective, or that fees for the proposed services are this regard, the Exchanges argue that the whether and to what extent they cover reasonable because of the need to proposed services are voluntary and services and fees that are already in recover data center costs.94 The 89 available to all market participants on effect. commenter states that the following an equal basis.80 In addition, the This commenter further argues that information would be relevant with Exchanges provide some cost-based the Exchanges’ competition- and cost- respect to the Exchanges’ cost-based based justifications for the proposals arguments: Which cost components the justifications throughout for why the 90 proposals are reasonable, claiming that amount to conclusory assertions. The Exchanges believe are relevant to the offering the proposed services requires commenter maintains that the services and why; the amount of those the provision, maintenance, and Exchanges do not specifically assert that costs over some specified period of other service providers can offer the operation of the Mahwah Data Center, recent time (e.g., during the last year); ability to transmit data or messages into including the installation, monitoring, and how those costs compare to the or out of the Mahwah Data Center as support, and maintenance of the amount of fees from the services that quickly and efficiently as IDS can.91 proposed services.81 The Exchanges also has been collected or is expected to be With respect to competition, the 95 assert that various of the proposed collected over the same time period. commenter states that the Exchanges changes to the Fee Schedule would should explain the following: Who the IV. Proceedings To Determine Whether provide market participants with greater other competing providers are and To Approve or Disapprove the transparency and clarity.82 which, if any of them, provide all of the Proposed Rule Changes The Exchanges argue that the same functionality as is provided by IDS The Commission is instituting proposals provide for an equitable in terms of access to exchange systems, proceedings pursuant to Section allocation of fees and are not unfairly third market systems, and market data; 19(b)(2)(B) of the Act to determine discriminatory, again contending that how the fees for the services compare to whether the Exchanges’ proposed rule the proposed services are voluntary and the prices charged by competing changes should be approved or available to all market participants on providers for the same or similar disapproved.96 Institution of 83 an equal basis. The Exchanges claim services; and whether competing proceedings does not indicate that the that the proposed rule changes do not providers have the ability to provide Commission has reached any apply differently to distinct types or services that are equivalent to the conclusions with respect to any of the sizes of market participants, but rather services in terms of latency or other issues involved. Rather, the Commission apply to all market participants equally, characteristics, and if so, the basis for seeks and encourages interested persons and state that the Fee Schedule would that conclusion (and if not equivalent, to provide additional comment on the be applied uniformly to all market what differences there are and how they proposed rule changes to inform the 84 participants. affect the question of whether the fees Commission’s analysis of whether to Lastly, the Exchanges argue that the charged are fair and reasonable).92 The approve or disapprove the proposed proposed rule changes do not impose an commenter also notes the Exchanges’ rule changes. unnecessary or inappropriate burden on claim that third-party providers of Pursuant to Section 19(b)(2)(B) of the competition because there are numerous circuits in the Mahwah Data Center Act,97 the Commission is providing other third parties that provide circuits charge lower fees than IDS, and argues notice of the grounds for possible and connectivity at the Mahwah Data that this raises the question of why IDS disapproval under consideration: Center, with whom IDS competes for the is able to charge more and what benefits • Whether the Exchanges have provision of such services to demonstrated how the proposals are customers.85 According to the 87 Letter from John Ramsay, Chief Market Policy consistent with Section 6(b)(4) of the Exchanges, the proposals do not affect Officer, Investors Exchange LLC (‘‘IEX’’) to Vanessa Act, which requires that the rules of a competition among national securities Countryman, Secretary, Commission, dated March 25, 2021 (‘‘IEX Letter’’). national securities exchange ‘‘provide exchanges or among members of the 88 See id. at 1, 4–5. The commenter also disputes for the equitable allocation of reasonable Exchanges, but rather the Exchanges’ the Exchanges’ assertion that the proposed services dues, fees, and other charges among its filing of the proposals puts IDS at a are not offerings of an ‘‘exchange’’ or a ‘‘facility’’ members and issuers and other persons competitive disadvantage relative to its thereof. See id. at 2; see also supra notes 10–13 and using its facilities;’’ 98 commercial competitors that are not accompanying text. 89 This commenter states that it is important for subject to filing requirements of Section providing informed comment on the proposals that 93 See id.; see also supra note 76. 19(b) of the Act.86 the Exchanges be clear as to whether they are 94 See IEX Letter at 3. 95 The Commission has received one seeking retroactive approval of offerings and fees See id. that are already in effect, and if so, understanding 96 15 U.S.C. 78s(b)(2)(B). comment letter regarding the proposed their history. The commenter states that the 97 Id. Section 19(b)(2)(B) of the Act also provides Exchanges should at a minimum explain: Which that proceedings to determine whether to 78 See id. at 12721. fees are already in effect and how long have they disapprove a proposed rule change must be been in effect; if previously charged by an entity 79 See id. at 12721–22. concluded within 180 days of the date of other than IDS, by which entity, and what the 80 See id. at 12721. publication of notice of the filing of the proposed purpose was for the change in entity; and if any rule change. See id. The time for conclusion of the 81 See id. at 12721–23. specific fees have increased, what the dates and proceedings may be extended for up to 60 days if 82 See id. at 12722. amounts of the increases were, as well as the the Commission finds good cause for such 83 See id. at 12723. reasons for such increases. See IEX Letter at 2. extension and publishes its reasons for so finding, 84 See id. 90 See id. at 3. or if the exchange consents to the longer period. See 85 See id. at 12724. 91 See id. at 4. id. 86 See id. at 12723–24. 92 See id. 98 15 U.S.C. 78f(b)(4).
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• Whether the Exchanges have using its facilities; are designed to Commission, 100 F Street NE, demonstrated how the proposals are perfect the operation of a free and open Washington, DC 20549–1090. consistent with Section 6(b)(5) of the market and a national market system, Act, which requires, among other and to protect investors and the public All submissions should refer to File things, that the rules of a national interest; are not designed to permit Nos. SR–NYSE–2021–14, SR– securities exchange be ‘‘designed to unfair discrimination between NYSEAMER–2021–10, SR–NYSEArca– perfect the operation of a free and open customers, issuers, brokers, or dealers; 2021–13, SR–NYSECHX–2021–03, and market and a national market system’’ and do not impose any burden on SR–NYSENAT–2021–04. The file and ‘‘protect investors and the public competition that is not necessary or numbers should be included on the interest,’’ and not be ‘‘designed to appropriate in furtherance of the subject line if email is used. To help the permit unfair discrimination between purposes of the Act; 104 as well as any Commission process and review your customers, issuers, brokers, or other provision of the Act, or the rules comments more efficiently, please use dealers;’’ 99 and and regulations thereunder. only one method. The Commission will • Whether the Exchanges have post all comments on the Commission’s V. Commission’s Solicitation of demonstrated how the proposals are internet website (http://www.sec.gov/ Comments consistent with Section 6(b)(8) of the rules/sro.shtml). Copies of the Act, which requires that the rules of a The Commission requests written submission, all subsequent national securities exchange ‘‘not views, data, and arguments with respect amendments, all written statements impose any burden on competition not to the concerns identified above as well with respect to the proposed rule necessary or appropriate in furtherance as any other relevant concerns. Such change that are filed with the 100 of the purposes of [the Act].’’ comments should be submitted by June Commission, and all written As discussed in Section III above, the 23, 2021. Rebuttal comments should be communications relating to the Exchanges made various arguments in submitted by July 7, 2021. Although proposed rule change between the support of the proposals and the there do not appear to be any issues Commission and any person, other than Commission received a comment letter relevant to approval or disapproval that those that may be withheld from the that expressed concerns regarding the would be facilitated by an oral public in accordance with the proposals, including that the Exchanges presentation of views, data, and did not provide sufficient information to arguments, the Commission will provisions of 5 U.S.C. 552, will be establish that the proposals are consider, pursuant to Rule 19b–4, any available for website viewing and consistent with the Act and the rules request for an opportunity to make an printing in the Commission’s Public thereunder. oral presentation.105 Reference Room, 100 F Street NE, Under the Commission’s Rules of The Commission asks that Washington, DC 20549, on official Practice, the ‘‘burden to demonstrate commenters address the sufficiency and business days between the hours of that a proposed rule change is merit of the Exchanges’ statements in 10:00 a.m. and 3:00 p.m. Copies of such consistent with the Exchange Act and support of the proposals, in addition to filing also will be available for the rules and regulations issued any other comments they may wish to inspection and copying at the principal thereunder . . . is on the self-regulatory submit about the proposed rule changes. office of the Exchanges. All comments organization [‘SRO’] that proposed the Interested persons are invited to received will be posted without change. rule change.’’ 101 The description of a submit written data, views, and Persons submitting comments are proposed rule change, its purpose and arguments concerning the proposed rule cautioned that we do not redact or edit operation, its effect, and a legal analysis changes, including whether the personal identifying information from of its consistency with applicable proposals are consistent with the Act. comment submissions. You should requirements must all be sufficiently Comments may be submitted by any of submit only information that you wish detailed and specific to support an the following methods: 102 to make publicly available. All affirmative Commission finding. Any submissions should refer to File Nos. failure of an SRO to provide this Electronic Comments SR–NYSE–2021–14, SR–NYSEAMER– information may result in the • Use the Commission’s internet 2021–10, SR–NYSEArca–2021–13, SR– Commission not having a sufficient comment form (http://www.sec.gov/ NYSECHX–2021–03, and SR– basis to make an affirmative finding that rules/sro.shtml); or NYSENAT–2021–04 and should be a proposed rule change is consistent • Send an email to rule-comments@ submitted on or before June 23, 2021. with the Act and the applicable rules sec.gov. Please include File Nos. SR– 103 Rebuttal comments should be submitted and regulations. NYSE–2021–14, SR–NYSEAMER–2021– The Commission is instituting 10, SR–NYSEArca–2021–13, SR– by July 7, 2021. proceedings to allow for additional NYSECHX–2021–03, SR–NYSENAT– For the Commission, by the Division of consideration and comment on the 2021–04 on the subject line. Trading and Markets, pursuant to delegated issues raised herein, including as to authority.106 Paper Comments whether the proposals are consistent J. Matthew DeLesDernier, with the Act, specifically, with its • Send paper comments in triplicate Assistant Secretary. requirements that the rules of a national to Secretary, Securities and Exchange securities exchange provide for the [FR Doc. 2021–11533 Filed 6–1–21; 8:45 am] BILLING CODE 8011–01–P equitable allocation of reasonable dues, 104 See 15 U.S.C. 78f(b)(4), (5), and (8). fees, and other charges among its 105 15 U.S.C. 78s(b)(2). Section 19(b)(2) of the Act members, issuers, and other persons grants the Commission flexibility to determine what type of proceeding—either oral or notice and opportunity for written comments—is appropriate 99 15 U.S.C. 78f(b)(5). for consideration of a particular proposal by an 100 15 U.S.C. 78f(b)(8). SRO. See Securities Acts Amendments of 1975, 101 17 CFR 201.700(b)(3). Report of the Senate Committee on Banking, 102 See id. Housing and Urban Affairs to Accompany S. 249, 103 See id. S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). 106 17 CFR 200.30–3(a)(57).
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SECURITIES AND EXCHANGE whether to disapprove, the proposed proposed rule change. The text of these COMMISSION rule change (File No. SR–IEX–2021–06). statements may be examined at the For the Commission, by the Division of places specified in Item IV below. The [Release No. 34–92029; File No. SR–IEX– Trading and Markets, pursuant to delegated Exchange has prepared summaries, set 2021–06] authority.7 forth in sections A, B, and C below, of the most significant aspects of such Self-Regulatory Organizations; J. Matthew DeLesDernier, statements. Investors Exchange LLC; Notice of Assistant Secretary. Designation of a Longer Period for [FR Doc. 2021–11531 Filed 6–1–21; 8:45 am] A. Self-Regulatory Organization’s Commission Action on a Proposed BILLING CODE 8011–01–P Statement of the Purpose of, and Rule Change To Enhance the IEX Statutory Basis for, the Proposed Rule Retail Price Improvement Program for Change the Benefit of Retail Investors SECURITIES AND EXCHANGE COMMISSION 1. Purpose May 26, 2021. [Release No. 34–92028; File No. SR– The Exchange recently adopted a new On April 1, 2021, the Investors EMERALD–2021–19] data product known as the Liquidity Exchange LLC (‘‘IEX’’) filed with the Taker Event Report (the ‘‘Report’’), Securities and Exchange Commission Self-Regulatory Organizations; MIAX which will be available for purchase to (‘‘Commission’’), pursuant to Section Emerald, LLC; Notice of Filing and Exchange Members on a voluntary 19(b)(1) of the Securities Exchange Act Immediate Effectiveness of a Proposed basis.4 The Exchange now proposes to of 1934 (‘‘Act’’) 1 and Rule 19b–4 Rule Change To Amend Its Fee adopt fees for the Report. The Report thereunder,2 a proposed rule change to Schedule To Adopt Fees for a New was recently approved by the Securities enhance its Retail Price Improvement Data Product Known as the Liquidity and Exchange Commission Program for the benefit of retail Taker Event Report (‘‘Commission’’) and is described under investors. The proposed rule change Exchange Rule 531(a).5 The Report is an was published for comment in the May 26, 2021. optional product available to Members. 3 Pursuant to Section 19(b)(1) of the Federal Register on April 15, 2021. By way of background, the Report is Securities Exchange Act of 1934 The Commission received a comment a daily report that provides a Member 4 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 letter on the proposed rule change. (‘‘Recipient Member’’) with its liquidity 5 notice is hereby given that on May 14, Section 19(b)(2) of the Act provides response time details for executions of 2021, MIAX Emerald, LLC (‘‘MIAX that within 45 days of the publication of an order resting on the Book,6 where Emerald’’ or ‘‘Exchange’’), filed with the notice of the filing of a proposed rule that Recipient Member attempted to Securities and Exchange Commission change, or within such longer period up execute against such resting order 7 (‘‘Commission’’) a proposed rule change to 90 days (i) as the Commission may within a certain timeframe. It is as described in Items I, II, and III below, designate if it finds such longer period important to note that the content of the which Items have been prepared by the to be appropriate and publishes its Report is specific to the Recipient Exchange. The Commission is reasons for so finding or (ii) as to which Member and the Report will not include publishing this notice to solicit the self-regulatory organization any information related to any Member comments on the proposed rule change consents, the Commission shall either other than the Recipient Member. from interested persons. approve the proposed rule change, The following information is included disapprove the proposed rule change, or I. Self-Regulatory Organization’s in the Report regarding the resting institute proceedings to determine Statement of the Terms of Substance of order: (A) The time the resting order whether the proposed rule change the Proposed Rule Change was received by the Exchange; (B) should be disapproved. The 45th day symbol; (C) order reference number, after publication of the notice for this The Exchange is filing a proposal to amend the Exchange’s Fee Schedule which is a unique reference number proposed rule change is May 30, 2021. assigned to a new order at the time of The Commission is extending this 45- (‘‘Fee Schedule’’) to adopt fees for a new data product known as the Liquidity receipt; (D) whether the Recipient day time period. 8 3 Member is an Affiliate of the Member The Commission finds that it is Taker Event Report. The text of the proposed rule change appropriate to designate a longer period 4 is available on the Exchange’s website at The term ‘‘Member’’ means an individual or within which to take action on the organization approved to exercise the trading rights http://www.miaxoptions.com/rule- proposed rule change so that it has associated with a Trading Permit. Members are filings/emerald, at MIAX’s principal sufficient time to consider the proposed deemed ‘‘members’’ under the Exchange Act. See office, and at the Commission’s Public the Definitions Section of the Fee Schedule and rule change and the comments received Reference Room. Exchange Rule 100. thereon. Accordingly, pursuant to 5 See Securities Exchange Act Release No. 91787 Section 19(b)(2) of the Act,6 the II. Self-Regulatory Organization’s (May 6, 2021), 86 FR 26111 (May 12, 2021) (SR– Commission designates July 14, 2021, as Statement of the Purpose of, and EMERALD–2021–09) (Order Granting Approval of a Proposed Rule Change to Adopt Exchange Rule the date by which the Commission shall Statutory Basis for, the Proposed Rule 531(a), Reports, to Provide for a New ‘‘Liquidity either approve or disapprove, or Change Taker Event Report’’). institute proceedings to determine In its filing with the Commission, the 6 The term ‘‘Book’’ means the electronic book of buy and sell orders and quotes maintained by the Exchange included statements System. See Exchange Rule 100. The term ‘‘System’’ 1 15 U.S.C. 78s(b)(1). concerning the purpose of and basis for means the automated trading system used by the 2 17 CFR 240.19b–4. the proposed rule change and discussed Exchange for the trading of securities. See id. 3 See Securities Exchange Act Release No. 91523 any comments it received on the 7 Only displayed orders will be included in the (April 9, 2021), 86 FR 19912 (April 15, 2021). Report. The Exchange notes that it does not 4 Comments received on the proposed rule change currently offer any non-displayed orders types on are available at: https://www.sec.gov/comments/sr- 7 17 CFR 200.30–3(a)(31). its options trading platform. iex-2021-06/sriex202106.htm. 1 15 U.S.C. 78s(b)(1). 8 The term ‘‘affiliate’’ of or person ‘‘affiliated 5 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. with’’ another person means a person who, directly, 6 Id. 3 See, generally, Exchange Rule 531(a). or indirectly, controls, is controlled by, or is under
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that entered the resting order; 9 (E) Member. If the resting order executes The Report will be a Member-specific origin type (e.g., Priority Customer,10 against multiple contra-side responses, report and will help Members to better Market Maker; 11) (F) side (buy or sell); only the EBBO and ABBO at the time of understand by how much time a and (G) displayed price and size of the the execution against the first response particular order missed executing resting order.12 will be included. against a specific resting order, thus The following information is included The following information is included allowing that Member to determine in the Report regarding the execution of in the Report regarding response(s) sent whether it wants to invest in the the resting order: (A) The EBBO 13 at the by the Recipient Member: (A) Recipient necessary resources and technology to time of execution; 14 (B) the ABBO 15 at Member identifier; (B) the time mitigate missed executions against the time of execution; 16 (C) the time difference between the time the first certain resting orders on the Exchange’s first response that executes against the response that executes against the Book. resting order was received by the resting order was received by the The Exchange proposes to provide the Exchange and the size of the execution Exchange and the time of each response Report in response to Member demand and type of the response; 17 (D) the time sent by the Recipient Member, for data concerning the timeliness of difference between the time the resting regardless of whether it executed or their incoming orders and executions order was received by the Exchange and not; 19 (C) size and type of each response against resting orders. Members have the time the first response that executes submitted by Recipient Member; and (D) periodically requested from the against the resting order was received by response reference number, which is a Exchange’s trading operations personnel 18 the Exchange; and (E) whether the unique reference number attached to the information concerning the timeliness response was entered by the Recipient response by the Recipient Member. of their incoming orders and efficacy of The Report includes the data set for their attempts to execute against resting common control with, such other person. See executions and contra-side responses liquidity on the Exchange’s Book. The Exchange Rule 100. purpose of the Report is to provide 9 The Report will simply indicate whether the that occurred within 200 microseconds Recipient Member is Affiliate of the Member that of the time the resting order was Members the necessary data in a entered the resting order and not include any other received by the Exchange. The Report standardized format on a T+1 basis to information that may indicate the identity of the contains historical data from the prior those that subscribe to the Report on an Member that entered the resting order. equal basis. 10 trading day and will be available after The term ‘‘Priority Customer’’ means a person The product is offered to Members on or entity that (i) is not a broker or dealer in the end of the trading day, generally on a completely voluntary basis in that the securities, and (ii) does not place more than 390 a T+1 basis. The Report does not Exchange is not required by any rule or orders in listed options per day on average during include real-time data. a calendar month for its own beneficial account(s). regulation to make this data available The Exchange believes the additional The number of orders shall be counted in and potential subscribers may purchase accordance with Interpretation and Policy .01 to data points from the matching engine the Report only if they voluntarily Exchange Rule 100. See Exchange Rule 100. outlined above may help Members gain 11 choose to do so. It is a business decision The term ‘‘Market Maker’’ refers to ‘‘Lead a better understanding about their own Market Makers’’, ‘‘Primary Lead Market Makers’’ of each Member whether to subscribe to interactions with the Exchange. The and ‘‘Registered Market Makers’’ collectively. See the Report or not. Exchange Rule 100. Exchange believes the Report will The Exchange proposes to adopt new 12 This information is also included in the Missed provide Members with an opportunity Opportunity—Latency Report, which is similar Section 7), Reports, in its Fee Schedule, to learn more about better opportunities which will provide that Members may report for equity securities that is offered by the to access liquidity and receive better NASDAQ Stock Market, LLC (the ‘‘NASDAQ purchase the Report on a monthly or Report’’). See NASDAQ Equity Section 7, Rule execution rates. The Report will annual (12-month) basis. The Exchange 146(a)(2). The Exchange notes that the displayed increase transparency and democratize price and size are also disseminated via the proposes to assess a monthly fee of information so that all firms that $4,000 per month and a fee of $24,000 Exchange’s proprietary data feeds and the Options subscribe to the Report have access to Price Reporting Authority (‘‘OPRA’’). The Exchange per year for a 12-month subscription for also notes that the displayed price of the resting the same information on an equal basis, the Report. Members may cancel their order may be different than the ultimate execution even for firms that do not have the price. This may occur when a resting order is subscription at any time. The Exchange appropriate resources to generate a also proposes to specify that for mid- displayed and ranked at different prices upon entry similar report regarding interactions to avoid a locked or crossed market. month subscriptions, new subscribers 13 The term ‘‘EBBO’’ means the best bid or offer with the Exchange. will be charged for the full calendar on the Exchange. See Exchange Rule 100. Members generally would use a month for which they subscribe and 14 Exchange Rule 531(a)(1)(ii)(B) provides that if liquidity accessing order if there is a will be provided Report data for each the resting order executes against multiple contra- high probability that it will execute side responses, only the EBBO at the time of the trading day of the calendar month prior execution against the first response will be against an order resting on the to the day on which they subscribed. included. Exchange’s Book. The Report identifies The Exchange intends to begin to offer 15 The term ‘‘ABBO’’ or ‘‘Away Best Bid or Offer’’ by how much time an order that may the Report and charge the proposed fees means the best bid(s) or offer(s) disseminated by have been marketable missed an on May 17, 2021. other Eligible Exchanges (defined in Exchange Rule execution. The Report will provide 1400(g)) and calculated by the Exchange based on 2. Statutory Basis market information received by the Exchange from greater visibility into the missed trading OPRA. See Exchange Rule 100. execution, which will allow Members to The Exchange believes that the 16 Exchange Rule 531(a)(1)(ii)(A) further provides optimize their models and trading proposed rule change is consistent with that if the resting order executes against multiple patterns to yield better execution Section 6(b) of the Act,20 in general, and contra-side responses, only the ABBO at the time of the execution against the first response will be results. furthers the objectives of Section 6(b)(5) included. of the Act,21 in particular, in that it is 17 The time the Exchange received the response 19 For purposes of calculating this duration of designed to prevent fraudulent and order would be in nanoseconds and would be the time, the Exchange will use the time the resting manipulative acts and practices, to time the response was received by the Exchange’s order and the Recipient Member’s response(s) is promote just and equitable principles of network, which is before the time the response received by the Exchange’s network, both of which would be received by the System. would be before the order and response(s) would 18 The time difference would be provided in be received by the System. This time difference 20 15 U.S.C. 78f(b). nanoseconds. would be provided in nanoseconds. 21 15 U.S.C. 78f(b)(5).
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trade, to remove impediments to and broader forms that are most important to long-term interest in the Report. A lower perfect the mechanism of a free and investors and listed companies.’’ 25 annual subscription fee would also open market and a national market Making similar data products available incentivize Members to subscribe to the system, and to protect investors and the to market participants fosters Report on a long-term basis, thereby public interest, and that it is not competition in the marketplace, and improving the efficiency by which the designed to permit unfair constrains the ability of exchanges to Exchange may deliver the Report by discrimination among customers, charge supra-competitive fees. In the doing so on a regular basis over a brokers, or dealers. The Exchange also event that a market participant views prolonged and set period of time. The believes that its proposal to adopt fees one exchange’s data product as more Exchange notes that other exchanges for the Report is consistent with Section attractive than the competition, that provide annual subscriptions for reports 6(b) of the Act 22 in general, and furthers market participant can, and often does, concerning their data product the objectives of Section 6(b)(4) of the switch between similar products. The offerings.27 Act 23 in particular, in that it is an proposed fees are a result of the The Exchange also believes the equitable allocation of dues, fees and competitive environment of the U.S. proposed fees are reasonable as they other charges among its Members and options industry as the Exchange seeks would support the introduction of a other recipients of Exchange data. to adopt fees to attract purchasers of the new market data product to Members In adopting Regulation NMS, the recently introduced Report. that are interested in gaining insight Commission granted self-regulatory The Exchange believes the proposed into latency in connection with orders organizations (‘‘SROs’’) and broker- fees are reasonable as the proposed fees that failed to execute against an order dealers increased authority and are both modest and similar to fees resting on the Exchange’s Book. The flexibility to offer new and unique assessed by other exchanges that Report accomplishes this by providing market data to the public. It was provide similar data products.26 Indeed, those Members data to analyze by how believed that this authority would if the Exchange proposed fees that much time their order may have missed expand the amount of data available to market participants viewed as an execution against a contra-side order consumers, and also spur innovation excessively high, then the proposed fees resting on the Book. Members may use and competition for the provision of would simply serve to reduce demand this data to optimize their models and market data. The Exchange believes that for the Exchange’s data product, which trading patterns in an effort to yield the Report further broadens the as noted, is entirely optional. Other better execution results by calculating availability of U.S. option market data to options exchanges are also free to by how much time their order may have investors consistent with the principles introduce their own comparable data missed an execution. of Regulation NMS. The Report also products with lower prices to better Selling market data, such as the promotes increased transparency compete with the Exchange’s offering. Report, is also a means by which through the dissemination of the Report. As such, the Exchange believes that the exchanges compete to attract business. Particularly, the Report will benefit proposed fees are reasonable and set at To the extent that the Exchange is investors by facilitating their prompt a level to compete with other options successful in attracting subscribers for access to the value added information exchanges that may choose to offer the Report, it may earn trading revenues that is included in the Report. The similar reports. Moreover, if a market and further enhance the value of its data Report will allow Members to access participant views another exchange’s products. If the market deems the information regarding their trading potential report as more attractive, then proposed fees to be unfair or activity that they may utilize to evaluate such market participant can merely inequitable, firms can diminish or their own trading behavior and order choose not to purchase the Exchange’s discontinue their use of the data and/or interactions. Report and instead purchase another avail themselves of similar products The Exchange operates in a highly 28 competitive environment. Indeed, there exchange’s similar data product, which offered by other exchanges. The are currently 16 registered options may offer similar data points, albeit Exchange therefore believes that the exchanges that trade options. Based on based on that other market’s trading proposed fees for the Report reflect the publicly available information, no single activity. competitive environment and would be options exchange has more than 15% of The Exchange also believes providing properly assessed on Member users. The the market share and currently the an annual subscription for an overall Exchange also believes the proposed Exchange represents only approximately lower fee than a monthly subscription is fees are equitable and not unfairly 6.08% of the market share.24 The equitable and reasonable because it discriminatory as the fees would apply Commission has repeatedly expressed would enable the Exchange to gauge equally to all users who choose to its preference for competition over purchase such data. It is a business 25 regulatory intervention in determining See Securities Exchange Act Release No. 51808 decision of each Member that chooses to (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) purchase the Report. The Exchange’s prices, products, and services in the (‘‘Regulation NMS Adopting Release’’). securities markets. Particularly, in 26 The NASDAQ Stock Market LLC (‘‘NASDAQ’’) proposed fees would not differentiate Regulation NMS, the Commission charges fees ranging from $1,500 to $3,500 per between subscribers that purchase the highlighted the importance of market month for a similar report for equity securities Report and are set at a modest level that called the Missed Opportunity—Latency report as would allow any interested Member to forces in determining prices and SRO part of its NASDAQ Trader Insights offering. See revenues and, also, recognized that NASDAQ Equity Section 7, Rule 146(a)(2). See also purchase such data based on their current regulation of the market system the CME Group, Inc.’s Time and Sale report. https:// business needs. ‘‘has been remarkably successful in www.cmegroup.com/trading/about-time- The Exchange reiterates that the sales.html#:∼:text=CME%20Globex%20Options)-, decision as to whether or not to promoting market competition in its CME%20Group’s%20Time %20%26%20Sales%20report purchase the Report is entirely optional 22 15 U.S.C. 78f(b). %20provides%20the%20price 23 15 U.S.C. 78f(b)(4). %20and%20time,calendar%20date) 27 Cboe Exchange, Inc. (‘‘Cboe’’) assesses a 24 See Cboe Global Markets U.S. Options Market %20of%20the%20transaction.& $24,000 annual fee for an intra-day subscription to Month-to-Date Volume Summary (April 28, 2021), text=A%20zero%20volume%20represents%20an Open-Close Data. See https://datashop.cboe.com/ available at https://markets.cboe.com/us/options/ %20indicative%20price.,-The%20Indicator options-summary-subscription. market_statistics/. %20column. 28 See supra note 26.
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for all potential subscribers. Indeed, no intramarket competition. Particularly, only one method. The Commission will market participant is required to the proposed product and fees apply post all comments on the Commission’s purchase the Report, and the Exchange uniformly to any purchaser in that the internet website (http://www.sec.gov/ is not required to make the Report Exchange does not differentiate between rules/sro.shtml). Copies of the available to all investors. It is entirely a subscribers that purchase the Report. submission, all subsequent business decision of each Member to The proposed fees are set at a modest amendments, all written statements subscribe to the Report. The Exchange level that would allow any interested with respect to the proposed rule offers the Report as a convenience to Member to purchase such data based on change that are filed with the Members to provide them with their business needs. Commission, and all written additional information regarding trading communications relating to the C. Self-Regulatory Organization’s activity on the Exchange on a delayed proposed rule change between the Statement on Comments on the basis after the close of regular trading Commission and any person, other than Proposed Rule Change Received From hours. A Member that chooses to those that may be withheld from the Members, Participants, or Others subscribe to the Report may discontinue public in accordance with the receiving the Report at any time if that Written comments were neither provisions of 5 U.S.C. 552, will be Member determines that the information solicited nor received. available for website viewing and contained in the Report is no longer III. Date of Effectiveness of the printing in the Commission’s Public useful. Proposed Rule Change and Timing for Reference Room, 100 F Street NE, B. Self-Regulatory Organization’s Commission Action Washington, DC 20549, on official Statement on Burden on Competition business days between the hours of The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the The Exchange does not believe that effective pursuant to Section filing also will be available for 29 the proposed rule change will result in 19(b)(3)(A)(ii) of the Act, and Rule inspection and copying at the principal 30 any burden on competition that is not 19b–4(f)(2) thereunder. At any time office of the Exchange. All comments necessary or appropriate in furtherance within 60 days of the filing of the received will be posted without change. of the purposes of the Act. The proposed rule change, the Commission Persons submitting comments are Exchange made the Report available in summarily may temporarily suspend cautioned that we do not redact or edit order to keep pace with changes in the such rule change if it appears to the personal identifying information from industry and evolving customer needs Commission that such action is comment submissions. You should and demands, and believes the data necessary or appropriate in the public submit only information that you wish product will contribute to robust interest, for the protection of investors, to make available publicly. All competition among national securities or otherwise in furtherance of the submissions should refer to File exchanges. As a result, the Exchange purposes of the Act. If the Commission Number SR–EMERALD–2021–19 and believes this proposed rule change takes such action, the Commission shall should be submitted on or before June permits fair competition among national institute proceedings to determine 23, 2021. securities exchanges. whether the proposed rule should be The Exchange also does not believe approved or disapproved. For the Commission, by the Division of the proposed fees would cause any Trading and Markets, pursuant to delegated unnecessary or inappropriate burden on IV. Solicitation of Comments authority.31 intermarket competition as other Interested persons are invited to J. Matthew DeLesDernier, exchanges are free to introduce their submit written data, views, and Assistant Secretary. own comparable data product with arguments concerning the foregoing, [FR Doc. 2021–11530 Filed 6–1–21; 8:45 am] lower prices to better compete with the including whether the proposed rule BILLING CODE 8011–01–P Exchange’s offering. The Exchange change is consistent with the Act. operates in a highly competitive Comments may be submitted by any of environment, and its ability to price the the following methods: SECURITIES AND EXCHANGE Report is constrained by competition COMMISSION among exchanges who choose to adopt Electronic Comments a similar product. The Exchange must • [Release No. 34–92032; File No. SR– Use the Commission’s internet CboeBZX–2021–024] consider this in its pricing discipline in comment form (http://www.sec.gov/ order to compete for the market data. rules/sro.shtml); or Self-Regulatory Organizations; Cboe • For example, proposing fees that are Send an email to rule-comments@ BZX Exchange, Inc.; Notice of excessively higher than fees for sec.gov. Please include File Number SR– Designation of a Longer Period for potentially similar data products would EMERALD–2021–19 on the subject line. Commission Action on a Proposed simply serve to reduce demand for the Rule Change To List and Trade Shares Exchange’s data product, which as Paper Comments • of the WisdomTree Bitcoin Trust Under discussed, market participants are under Send paper comments in triplicate BZX Rule 14.11(e)(4), Commodity- no obligation to utilize. In this to Secretary, Securities and Exchange Based Trust Shares competitive environment, potential Commission, 100 F Street NE, purchasers are free to choose which, if Washington, DC 20549–1090. May 26, 2021. any, similar product to purchase to All submissions should refer to File On March 26, 2021, Cboe BZX satisfy their need for market Number SR–EMERALD–2021–19. This Exchange, Inc. (‘‘BZX’’) filed with the information. As a result, the Exchange file number should be included on the Securities and Exchange Commission believes this proposed rule change subject line if email is used. To help the (‘‘Commission’’), pursuant to Section permits fair competition among national Commission process and review your 19(b)(1) of the Securities Exchange Act securities exchanges. comments more efficiently, please use of 1934 (‘‘Act’’) 1 and Rule 19b–4 The Exchange does not believe the proposed rule change would cause any 29 15 U.S.C. 78s(b)(3)(A)(ii). 31 17 CFR 200.30–3(a)(12). unnecessary or inappropriate burden on 30 17 CFR 240.19b–4(f)(2). 1 15 U.S.C. 78s(b)(1).
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thereunder,2 a proposed rule change to SECURITIES AND EXCHANGE (A) Clearing Agency’s Statement of the list and trade shares of the WisdomTree COMMISSION Purpose of, and Statutory Basis for, the Bitcoin Trust under BZX Rule Proposed Rule Change 14.11(e)(4), Commodity-Based Trust [Release No. 34–92020; File No. SR–ICEEU– (a) Purpose Shares. The proposed rule change was 2021–010] published for comment in the Federal ICE Clear Europe is submitting Register on April 15, 2021.3 The Self-Regulatory Organizations; ICE proposed amendments to the Amended Commission has received comments on Clear Europe Limited; Notice of Filing Documents that are intended to make a the proposed rule change.4 of Proposed Rule Change Relating to variety of improvements and changes, the Clearing Rules, Clearing including to (1) update various Rules Section 19(b)(2) of the Act 5 provides Procedures, Finance Procedures, and procedures to reflect current laws that within 45 days of the publication of Delivery Procedures, CDS Procedures, and regulations such as those relating to notice of the filing of a proposed rule Membership Procedures, Complaint post-default porting, capital change, or within such longer period up Resolution Procedures and General requirements, and anti-money to 90 days (i) as the Commission may Contract Terms laundering requirements, (2) update designate if it finds such longer period various defined terms, (3) update certain May 26, 2021. to be appropriate and publishes its product and Clearing Member reasons for so finding or (ii) as to which Pursuant to Section 19(b)(1) of the termination rules, (4) update certain the self-regulatory organization Securities Exchange Act of 1934 1 2 notice provisions, (5) clarify consents, the Commission shall either (‘‘Act’’), and Rule 19b–4 thereunder, membership criteria and obligations for approve the proposed rule change, notice is hereby given that on May 13, Clearing Members, (6) clarify how open disapprove the proposed rule change, or 2021, ICE Clear Europe Limited (‘‘ICE contract positions are aggregated and institute proceedings to determine Clear Europe’’ or the ‘‘Clearing House’’) netted, (7) update certain systems filed with the Securities and Exchange whether the proposed rule change references to reflect current systems and Commission (‘‘Commission’’) the should be disapproved. The 45th day delete obsolete references, (8) amend proposed rule changes described in after publication of the notice for this and clarify the Complaint Resolution Items I, II and III below, which Items proposed rule change is May 30, 2021. Procedures, (9) update various have been prepared primarily by ICE provisions of the Delivery Procedures, The Commission is extending this 45- Clear Europe. The Commission is day time period. (10) introduce a summary disciplinary publishing this notice to solicit process and clarify disciplinary The Commission finds that it is comments on the proposed rule change processes and (11) make various other appropriate to designate a longer period from interested persons. drafting improvements, clarifications within which to take action on the I. Clearing Agency’s Statement of the and updates, in each case as described proposed rule change so that it has Terms of Substance of the Proposed in further detail herein. sufficient time to consider the proposed Rule Change rule change and the comments received. a. Removal of ‘‘Default Portability Accordingly, pursuant to Section ICE Clear Europe Limited proposes to Preference’’ 3 19(b)(2) of the Act,6 the Commission amend its Clearing Rules (the ‘‘Rules’’) (including to the CDS Standard Terms, Various amendments are proposed to designates July 14, 2021, as the date by remove the process whereby Non-FCM/ which the Commission shall either F&O Standard Terms and FX Standard Terms annexed thereto), Clearing BD Clearing Members are able to deliver approve or disapprove, or institute Procedures, Finance Procedures, a ‘‘Default Portability Preference’’, with proceedings to determine whether to Delivery Procedures, CDS Procedures, advance, pre-default, porting disapprove, the proposed rule change Membership Procedures, Complaint information to the Clearing House. This (File No. SR–CboeBZX–2021–024). Resolution Procedures and General process and mechanism had been For the Commission, by the Division of Contract Terms (collectively, the developed by ICE Clear Europe as part Trading and Markets, pursuant to delegated ‘‘Amended Documents’’) to make of its default planning processes prior to authority.7 various updates and enhancements. post-crisis legislation such as EMIR coming into force. EMIR requires post- J. Matthew DeLesDernier, II. Clearing Agency’s Statement of the default porting notices to be served as Assistant Secretary. Purpose of, and Statutory Basis for, the a pre-condition to porting, rendering the [FR Doc. 2021–11532 Filed 6–1–21; 8:45 am] Proposed Rule Change default portability preference structure BILLING CODE 8011–01–P In its filing with the Commission, ICE to be of limited assistance. In addition, Clear Europe included statements and in practice, ICE Clear Europe did concerning the purpose of and basis for not receive many notices of Default the proposed rule change and discussed Portability Preferences. After EMIR, any comments it received on the other clearing houses did not use or proposed rule change. The text of these ceased to use such notices and potential statements may be examined at the transferee clearing members are often places specified in Item IV below. ICE unwilling to commit to receive porting in advance. As part of default 2 17 CFR 240.19b–4. Clear Europe has prepared summaries, management planning and following 3 See Securities Exchange Act Release No. 91521 set forth in sections (A), (B), and (C) (April 9, 2021), 86 FR 19917 (April 15, 2021). below, of the most significant aspects of default drills with industry 4 Comments received on the proposed rule change such statements. participation, it was determined to are available at: https://www.sec.gov/comments/sr- remove this structure from the Rules. cboebzx-2021-024/srcboebzx2021024.htm. 1 15 U.S.C. 78s(b)(1). Various changes will be made to the 5 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. Rules to remove references to pre- 6 Id. 3 Capitalized terms used but not defined herein default Porting Notice and, where 7 17 CFR 200.30–3(a)(31). have the meanings specified in the Rules. appropriate, replace these references
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with post-default Porting Notices, as to Default Portability Preferences and Commodity EFRP’’ definition (which is discussed herein. include reference to Porting Notices. not otherwise used) would be deleted. This proposal results in a number of proposed changes. In Rule 101, the b. Introducing Consistency to the d. Amendments to Product Termination definition of ‘‘Default Portability Definitions Relating to Energy Rules Preference’’ definition would be Transactions Rule 105 would be amended to deleted. The related concept of ‘‘Non- A series of amendments are proposed shorten the termination period Transfer Positions’’ in Rule 101 would to certain definitions relating to Energy (generally from four months to one be deleted as this defined term would transactions, simplifying and making month) for a service withdrawal for a no longer be used following removal of such terms consistent with certain product in circumstances in which there the Default Portability Preference amendments previously made to is no open interest in the relevant Set. concept. A new definition of ‘‘Porting definitions for other F&O Products.4 In such circumstances, in ICE Clear Notice’’ (which refers to a post-default Consistent with such prior Europe’s view, a longer termination indication of a porting preference) amendments, in Rule 101, the ‘‘Energy’’ period is unnecessary, since no action is would be introduced in Rule 101, with definition would be shortened to refer to required by Clearing Members to close a cross-reference to the existing the term ‘‘Market’’ rather than naming out their positions. Proposed definition of that term in the Standard all specific ICE markets. New amendments would also clarify that Terms Annex. definitions would be introduced for where a product termination occurs In Rule 904, which addresses ‘‘Energy Matched Transaction’’ following actions of the relevant procedures for post-default transfer of (referencing an energy transaction exchange (e.g., a de-listing), the notice contracts and margin, various changes conducted on a Market) and a revised period required under the exchange’s are proposed to implement the remove definition of ‘‘Energy Transaction’’ rules would instead apply and the of Default Portability Preferences. would be added (covering an Energy exchange would be responsible for Specifically, changes are proposed to Matched Transaction or an Energy Block providing such notice. Rules 904(g) and 904(j) to remove the Transaction meeting specified criteria). e. Amendments to the Termination references to Default Portability The changes are consistent with the Rules for Clearing Members Preference and instead refer to the approach used in the definitions of process around the use of Porting Financials & Softs Matched Transaction Amendments are proposed to Rule Notices. Rule 904(g) would be amended and Financials & Softs Transactions. 209(d) to facilitate membership to state that consent to become a The introduction to the General terminations in the context of a Transferee Clearing Member can only be Contract Terms would similarly be corporate group reorganization where a evidenced in a Porting Notice where amended to remove references to named new Clearing Member that is an Affiliate that Clearing Member has countersigned ICE markets and instead use the more will be receiving the terminating the notice or otherwise agreed in generic term ‘‘relevant Market’’. Clearing Member’s Open Contract Positions. The amendment would writing. This clarifies that simply being c. EFRP (Exchange for Related Position) establish an exception to the named by a customer as a potential Definition Amendments Transferee Clearing Member is requirement for terminating Clearing insufficient. The changes proposed at Several changes to the Rules are Members to immediately upon service Rules 904(m), 904(p), 904(u) and 904(w) proposed to address more clearly of a Termination Notice pay to the reflect the deletion of the definition of exchange for related position Clearing House Assessment Default Portability Preference. transactions (referred to as EFRPs) Contributions equal to three times the Related changes are proposed in Rule under applicable Market rules, required relevant guaranty fund 907(d), which relates to the Clearing including to revise defined terms and contribution. In ICE Clear Europe’s House’s ability to rely on certain clarify that such transactions are view, such an exception is warranted information provided to it. References to available on exchanges for products since all positions would be received by Default Portability Preference and Non- other than soft commodities. an affiliated Clearing Member in good Transfer Positions have been deleted. In Rule 101, a new ‘‘EFRP’’ definition standing that would remain liable with Instead, in connection with porting the would be added, to be defined using a respect to any obligations arising from Clearing House will be entitled to rely similar structure to that for EFP and EFS or related to the holding of such on any information provided to it by a transactions. Also in Rule 101, in the positions under the Rules (including as defaulter prior to declaration of default ‘‘EFS’’ definition would be clarified to to future Assessment Contributions). in respect of Contracts, Customer-CM refer only to exchange for swaps or Rule 209(d) would be further Transactions, Margin and the Accounts similar transactions under Market Rules amended to clarify that references in the in which Contracts and Margin were and to remove an existing reference to Clearing Rules to Assessment recorded or which relate to particular exchange for related positions, which Contributions being called or to Customers or particular groups of would now be covered by the EFRP Guaranty Fund Contributions being Customers. This would allow the definition. In the ‘‘Financials & Softs replenished or applied, where the Clearing House to continue to be able to Block Transaction’’ definition, reference Clearing Member has provided act efficiently in default scenarios, and to ‘‘Soft Commodity EFRPs’’ would be Permitted Cover to the Clearing House be able to rely on more of the relevant widened to include all ‘‘EFRP’’s under (whether under Rule 209(d) or prior to information available to it in relation to all Market Rules, as Soft Commodity the Clearing Member serving its the Defaulter. Amendments would also EFRPs are specific to ICE Futures termination notice or the Termination clarify that the Clearing House has no Europe. This would be in line with the Date), would be interpreted as a obligation to inquire of any person as to definitions for EFP and EFS reference to that Permitted Cover being any Porting Notice. transactions. Accordingly, the ‘‘Soft applied. The new reference to Permitted The CDS Standard Terms (paragraph Cover which has been provided prior to 4 See Exchange Act Release No. 34–87275 (File 6), F&O Standard Terms (paragraph 6) No. SR–ICEEU–2019–020) (Oct. 10, 2019), 84 FR the serving of a termination notice or a and FX Standard Terms (paragraph 6) 55649 (Oct. 17, 2019) (changes to definitions using Termination Date would clarify that, as would be amended to remove references the term Market). is currently intended, the Cover
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provided at that earlier stage could also Rule 113(c) and 113(d) would be New Rule 301(o) would allow the be included as part of, for example, any amended to clarify the precise time Clearing House to request information applications of Guaranty Fund by the when effective service is deemed to be when needed on account balances of Clearing House under Part 9 or Part 11. made for communications by fax, email nominated accounts of the Clearing Further amendments to Rule 209(d) and courier, and that effective service Member at financial institutions, would clarify for the avoidance of doubt and delivery can be achieved outside of including for the purpose of calling on that the following obligations would opening hours on a business day, available cash where the Clearing apply to a terminating Clearing Member consistent with current operational Member has failed to meet a payment until Open Contract Positions have been practices. obligation or determining whether the closed, the Termination Date has passed Rule 1901(n) is similarly proposed to Clearing Member is or is likely to be in and all Guaranty Fund Contributions be amended to make clear that process default. This change would address have been returned under Rule 1102(g): agents for Sponsored Principals will act issues that have arisen in practice where Application of Guaranty Fund as agents for service of process of any payment banks have refused to provide Contributions, application of notice, order or other communication such information to the Clearing House. Assessment Contributions (to the extent under the Rules and the Sponsored This consent, as part of the Rules, paid under Rule 209(d) or otherwise Principal Agreement. should promote the sharing of this prior to the Termination Date), position To conform to the Rules, amendments important information. limits under Part 6, disciplinary actions to paragraph 4.2E of the summary table h. Greater flexibility in Financial under Part 10 and the declaration and at paragraph 4.2 of the Membership Reporting by Clearing Members consequences of an Event of Default Procedures would provide that under Part 9 of the Rules. This termination of a Clearing Membership It is proposed that Rule 205(a)(ii) be amendment is not intended to change Agreement or membership as a Clearing amended to give the Clearing House the current requirements under the Member would become effective no less greater flexibility to accept different Rules, but rather to state those than 30 Business Days after the date of kinds of financial statements (for requirements more clearly in a single the Termination Notice Time or example, semi-annual accounts) from provision and thereby facilitate the pursuant to Rule 917(c) instead of no Clearing Members as part of their Clearing House’s enforcing its rules less than three months’ advance notice financial reporting obligations, in during a termination period. if termination is not for cause and circumstances where that Clearing The proposed amendments to Rule otherwise as specified in and allowed Member does not produce a quarterly 209(d) overall reflect the Clearing pursuant to the Rules. financial statement for its regulators. House’s experience with both default Additionally, updates would be made This amendment would also result in a planning and recent Clearing Member throughout the summary table at conforming change to the summary terminations involving group paragraph 4.2 of the Membership table at paragraph 4.2 of the reorganizations. Procedures to the email address to Membership Procedures. which Clearing Members should send f. Notice Provisions The amendment would formalize certain notifications. current operational practice for those These proposed changes are designed g. Clarifying Clearing Membership Clearing Members who do not draw up to clarify and provide greater flexibility Criteria and Clearing Member regulatory quarterly financials and as to delivery of notices under the Obligations means that the basis for accepting such Rules. The changes have been informed reporting would be set forth in the Rules Rule 201(a)(ix) would be amended to by default simulation planning and in rather than pursuant to a separate reference that under existing Rule particular the requirements around arrangement, increasing transparency. default notices under Rule 901, but are 201(b), the Clearing House may require not limited to that context. Rules 113(a) that potential Clearing Members enter In addition, Rule 205(a)(ii) as well as and 113(a)(i) would be amended to into additional annexes or agreements to the summary table at paragraph 4.2 of delete the references to telephone as a the Clearing Membership Agreement in the Membership Procedures would be valid mode of service of notices (since order to be, and remain, eligible for amended to change the deadline for this is not supported operationally) and Clearing Membership. Some such submitting financial statements from 30 to replace it with email. The email annexes have had to be developed to to 45 days after the relevant period so address last notified to the Clearing cater for local law issues arising in that the deadline aligns with other House by a Clearing Member would certain EU member states as part of regulatory reporting deadlines (for become an option for service of notices. Clearing Members’ post-Brexit group example, the FCA deadlines). The addition of new Rule 113(a)(ii) legal structuring. This change would i. Clarifying CDS Contract Formation would clarify that the Clearing House clarify the basis in the Rules for the may also validly deliver notices to a Clearing House to require such Rule 401(o) would be amended to process agent nominated by the Clearing additional documentation to be make clear that where a CDS Contract of Member to act as its agent. Rule 113(e) executed, where necessary. a Non-FCM/BD Clearing Member for a already referred to such agents for Rule 202(a)(xxii) would be amended customer account arises pursuant to service of process, and would be to extend the requirement for Clearing Rule 401, a Customer-CM CDS expanded to explicitly refer to service of Members to have competent persons Transaction arises between the other contractual notices and accessible to the Clearing House, to also Customer and the Non-FCM/BD communications. A further change to include two hours prior to the start of Clearing Member at the same time as the Rule 113(a) clarifies that delivery in the business day. This is consistent with Contract. The current rule does not accordance with this section would be current operational practice and is specify the timing of the Customer-CM deemed made to the Clearing Member or necessary to ensure that staff are CDS Transaction, and the amendment Sponsored Principal (also if made to an available to process and deal with would reflect the equivalent rule for agent appointed by the Clearing Member queries in relation to morning margin F&O in Rule 401(n) and eliminate an or Sponsored Principal). calls. unintended drafting distinction.
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j. Clarifying How Open Contract amendments come out of default event would be made throughout the CDS Positions Are Aggregated and Netted simulations and planning. Procedures where ‘‘CDS Risk Committee’’ is currently used. The proposed amendments at Rule n. Affiliate Cross-Defaults 406(b) and (c) address contractual It is proposed that Rule 901(a)(iv) be q. Amendments to Complaint netting for F&O contracts. The proposed amended to clarify that the declaration Resolution Procedures changes would align the provisions for of an Event of Default in respect of one Various clarifications and F&O Contracts more closely with the Clearing Member is a circumstance in amendments are proposed throughout corresponding rule on contractual which the Clearing House can declare the Complaint Resolution Procedures. netting for CDS contracts in Rule 406(d) an Event of Default in respect of another et seq. Paragraph 1.1 would be amended to Clearing Member that is a Group reframe the Complaint Resolution In particular, the changes would Company. In the Clearing House’s view, Procedures based on ICE Clear Europe’s address aggregation of open contract this is the effect of Rule 901(a) as it obligations as a CCP under EMIR.8 positions of an F&O Clearing Member in stands already, but the Clearing House Throughout the procedures, the term addition to netting of such positions, has decided to clarify this expressly in and would clarify that the process for ‘‘Complaints Resolution Procedure’’ light of questions raised in default would be replaced with ‘‘Complaint aggregation or netting takes place via planning exercises. contractual novation. Resolution Procedures’’ to correct a o. ‘‘Eligible Contract Participant’’ Status typographical error and for consistency k. Clarifying How the Clearing House Rule 201(a)(xx) would be amended to with the term used in Rule 101. May Amend Contract Terms provide that the requirement that a Paragraph 1.1 would be amended to It is proposed that Rule 409(a) be Clearing Member be an ‘‘eligible use the defined term ‘‘Person’’ (which is amended so that the Clearing House can contract participant’’ 6 only applies if it defined in Rule 101) rather than evidence its consent to amendments, is to be a CDS Clearing member or an ‘‘person’’. This would be reflected as a waivers and variations of the Contract FX Clearing member. Such status would global change throughout the Complaint Terms by way of Circular. This has been not be required under U.S. law for a Resolution Procedures. Further the usual way of issuing such Clearing Member that is only an F&O amendments in paragraphs 1.1 and 1.2 amendments, waivers and variations, Clearing Member. The amendment would be made to provide for an and would conform the Rules with reflects that such status is required independent ‘‘Commissioner,’’ who is operational practice. under applicable U.S. law for persons responsible for the investigation of that trade swaps and security-based complaints generally, and for the l. Pledged Collateral Not for Settlement swaps (such as CDS), but not for appointment of an ‘‘Investigator’’ to Payments futures.7 Section 10 of the F&O investigate a particular complaint. It is proposed that Rule 1603(c) be Standard Terms would for similar Minor drafting updates would be made amended to clarify that only ‘‘original’’ reasons be amended to remove a in paragraph 1.3 to improve clarity. or ‘‘initial’’ types of Margin payments be requirement that an F&O Clearing Additional drafting changes provided in the form of Pledged Member and Customer be an eligible throughout the procedures would be Collateral, and that such collateral contract participant. Rule 1901(b)(xv) made to refer where appropriate to excludes Variation Margin, Mark-to- would also be amended to provide that ‘‘Eligible Complaint’’ instead of Market Margin and FX Mark-to-Market the requirement that a Sponsored complaint. This would clarify that only Margin, which is provided to or by the Principal be an eligible contract Eligible Complaints (and not other Clearing House by outright transfer of participant only applies in relation to complaints) would be subject to this cash as a settlement payment. The CDS Contracts and FX Contracts. process. As a result, the defined term ‘‘Complaint’’ has been replaced globally change is intended to be consistent with p. Corrected Names of Internal Risk by the undefined term ‘‘complaint’’, to amendments previously made to the Committees Rules to clarify that such variation and allow a distinction between complaints It is proposed that Rule 916(d) be mark-to-market margin are settlement generally speaking and those that amended to change the term ‘‘Risk payments rather than collateral, and was qualify as ‘‘Eligible Complaints’’ within Committee’’ to ‘‘relevant product risk inadvertently omitted from such prior the scope of the procedures. committee’’. This reflects that there are amendments.5 The definition of ‘‘Eligible different product risk committees Complaints’’ in paragraph 2.1 would be m. Hedging Following an Event of addressing topics specific to F&O and broadened to include complaints against Default CDS which take on this role. The Risk any Directors, officers, employees or Committee established under EMIR has Rule 903(c) would be amended to committees (or committee members) of different competencies. The changes clarify that the Clearing House’s right to the Clearing House, which ICE Clear clarify and align the Rules to current authorize hedging transactions in a Europe believes is the proper scope for Clearing House governance processes. Default scenario would include the Complaint Resolution Procedures. In the Finance Procedures paragraph The amendments would also clarify that transactions on a Market, any other 14(2) and 14(3), reference to the CDS Exchange or over the counter. The Eligible Complaints may relate to the Risk Committee and FX Risk Committee manner in which the Clearing House amendments would also provide that would be corrected to ‘‘CDS Product such transactions taking place on an has failed to perform applicable Risk Committee’’ and ‘‘FX Product Risk regulatory functions. exchange which is not a Market, or Committee’’ to reflect the correct where requested or directed otherwise committee names. The same change by the Clearing House, need not 8 As a result of ICE Clear Europe Circular C20/ themselves be cleared. These 163, this reference to EMIR is to be interpreted as 6 Commodity Exchange Act Section 1a(18), 7 including a reference to EMIR as applicable in the U.S.C. 1a(18). United Kingdom under the European Union 5 Exchange Act Release No. 34–88665 (File No. 7 See Section 6(l) of the Act, 15 U.S.C. 78f(l); (Withdrawal) Act 2018. See Exchange Act Release SR–ICEEU–2020–003) (Apr. 16, 2020), 85 FR 22892 Commodity Exchange Act Section 2(e), 7 U.S.C. No. 34–90746 (File No. SR–ICEEU–2020–016) (Dec. (Apr. 23, 2020). 2(e). 21, 2020), 85 FR 85704 (Dec. 29, 2020).
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Minor drafting amendments would be Paragraph 4.12 would be amended to r. Amendments to CDS Procedures made in paragraph 2.2 to correct expand the list of ongoing matters that Relating to List of Eligible Single Name typographical errors and use of defined would justify delay in the Reference Entities terms. Commissioner’s consideration of an Paragraph 11.4 would be amended Paragraph 3.6 would be amended to Eligible Complaint to be consistent with such that the Clearing House be include ‘‘investigation of the’’ before the list at paragraph 4.8, and also required to update certain relevant ‘‘Eligible Complaint’’ for drafting clarity. reference other processes under Part 10 information relating to CDS Contracts A drafting improvement would be of the Rules. on its website after making certain made in paragraph 4.1 to clarify that updates relating to Permitted Single acknowledgment of the complaint by Paragraph 4.14 would be amended Name Fixed Rates and Eligible Single the Clearing House must be made with minor non-substantive drafting Name Reference Entities instead of promptly, and in any case within 5 improvements. giving notice by Circular of such Business Days of receipt. Paragraph 5 would be amended to actions. New paragraph 4.2 would be added to clarify that the Investigator recommends allow the Clearing House to refer rather than takes remedial action s. Amendments to CDS Procedures To complaints to another recognized body himself. Allow Clearing Members To Nominate or authorized person where they Paragraph 6.3 would be amended to Affiliates consider that such entity is entirely or add ‘‘appeal process’’ to the list of Paragraph 4.4(f) of the CDS partly responsible for the subject matter dispute resolution procedures that a Procedures would be amended to clarify of the complaint. For example, a Complainant cannot use if it requires that CDS Clearing Members could complaint might better be administered the referral of any Eligible Complaint to designate an Affiliate that is also a CDS by an exchange for which the Clearing the Commissioner pursuant to the Clearing Member to accept CDS House clears. New paragraph 4.3 would Complaint Resolution Procedures. Contracts in lieu of it for CDS Contracts be added to set out the process whereby Reference to ‘‘mediation’’ has also been arising as a result of the existing CDS the Clearing House would be able to end-of-day pricing process pursuant to refer such a complaint. The deleted (as unnecessary in light of the other listed types of dispute resolution). Rule 401(a)(xi). amendments are intended to clarify A similar same change would be existing procedures, and avoid a Paragraph 7.2 would be amended to made at paragraph 11.5, to allow situation where the Clearing House clarify that the Commissioner does not designation of an Affiliate to accept would be forced to address a duplicative have to continue investigating a transactions arising out of the existing complaint or a complaint better handled complaint if the complaint is not an auction process to be used in the case by another entity. Eligible Complaint. Paragraph 7.3 would of self-referencing CDS transactions. Paragraph 4.4 would be amended to be amended to make clear that the This reflects existing practice for CDS correct minor typographical errors. Commissioner would only be required Clearing Members, as documented in The amendments to paragraph 4.5 to produce a final response where the certain arrangements between the would clarify that the Investigator must complaint is an Eligible Complaint. Clearing House and certain CDS be an individual who has no personal Paragraph 7.6 would be amended to Clearing Members allowing this to take interest or involvement in the matter of ensure that the Commissioner has place, but was unintentionally omitted the Eligible Complaint. The access to all relevant personnel from the CDS Procedures. amendments to that paragraph would (including directors, officers and other also make typographical corrections and t. Clarifications to CDS Clearing Member persons to whom functions have been similar drafting improvements. Sign Off of Weekly Cycles Paragraph 4.7 would be amended to outsourced) that may be needed for the purposes of the Eligible Complaint. It is proposed that new paragraph 3.5 make clear that the Investigator would be added to the CDS Procedures to not be required to disclose any Paragraph 7.8 would be amended to require CDS Clearing Members to information about the Complainant’s obligate the Clearing House to inform provide sign off via email on weekly identity when drafting their report of the Complainant of an alternative cycles by the time specified by the the Eligible Complaint. This paragraph Commissioner, when one is appointed, Clearing House. This change would would also be amended to correct minor within five Business Days of the date of document existing operational typographical errors and to update appointment. processes. cross-references. Paragraph 8.1 would be amended to Paragraph 4.8 would be amended to u. Adjustments to Clearing Member state explicitly that the Clearing House Capital Requirements include delivery disputes and appeals is required to consider the in the list of potential ongoing matters Commissioner’s report and It is proposed that paragraph 3.5(a) of that could warrant delay in the recommendations, in addition to the Membership Procedures would be consideration of an Eligible Complaint. informing the Commissioner of any amended to lower, from 50% to 25%, A similar change would also be made in proposed steps it would take in the portion of a Clearing Member’s paragraph 4.12. Certain typographical response to the report and Capital requirement that may be covered errors would also be corrected. recommendations. Certain other non- by subordinated loans before the Paragraph 4.11 would be amended to substantive drafting clarifications would Clearing House would require a written clarify that where the Clearing House be made as well. undertaking from the Clearing Member objects to the referral of a complaint to to not repay subordinated loans without the Commissioner under specified Paragraphs 8.2 and 8.3 would be the consent of the Clearing House. This circumstances (such that the Clearing amended to correct typographical errors. change would align the Clearing House can conclude its own Paragraph 11 would be amended to Member capital requirement more investigation), it must submit to the include the Investigator as a person closely with Basel III requirements. The Commissioner the reasons for that subject to the confidentiality obligations Basel II standard for ‘‘tier 2’’ determination. Several cross-references with respect to the complaint, and make instruments was set at 50% of total in the paragraph would also be updated. certain drafting clarifications. capital, i.e., Tier 2 capital including
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certain subordinated debt instruments Laundering Directive’’ to reflect the A new paragraph 1.1(d) of the could be of an amount equal to tier 1 implementation of the fifth EU Anti- Delivery Procedures would obligate (essentially share capital) (Section B, Money Laundering Directive. A Clearing Members to conduct Annex 1a, Basel II). This was changed definition of ‘‘Money Laundering appropriate AML due diligence for any in Basel III (LEX 20.1) to involve greater Regulations’’ is also proposed to be transferors/transferees and provide restrictions on the usage of subordinated added to the rules to reference the relevant documentation to the Clearing debt in general subject, where applicable UK regulations House and/or Clearing Member. The subordinated debt may be used, to an corresponding to that Directive amendments at paragraphs 5.4 and 5.5 upper limit of 25%. This proposed (including after its exit from the of the Delivery Procedures would clarify change in capital requirements European Union). that transferors and transferees that are promotes greater consistency with its In Rule 201(a)(xxix) and 1901(d)(xi), customers would be bound by the F&O existing operational implementation of the reference to ‘simplified due Standard Terms, including with respect capital requirements for Clearing diligence’ is proposed to be removed. to delivery of information, and also Members, albeit remaining more liberal This reflects the repeal and restatement clarify that transferors/transferees are than Basel III. All of the Clearing of the former U.K.’s Money Laundering not customers of the Clearing House for Members are located in countries which Regulations 2007 pursuant to the Money purposes of relevant anti-money have implemented Basel III and this Laundering, Terrorist Financing and laundering laws and other Applicable change is not considered to be material Transfer of Funds (Information on the Law. for any of them, whilst at the same time Payer) Regulations 2017, which making the Clearing House’s capital removed simplified due diligence as the y. Amendments To Reflect Updates to requirements more robust. default option for a defined list of ICE Clear Europe Systems It is further proposed that paragraph entities and replaced this with a New definitions of ‘‘ECS’’, ‘‘MFT’’, 3.5 of the Membership Procedures discretion on in-scope firms to apply ‘‘ICE FEC’’ and ‘‘MPFE’’, reflecting would be amended to remove risk-based levels of due diligence. various existing ICE Clear Europe irrevocable letters of credit as a Rule 201(a)(xxxi) is proposed to be systems, are proposed in the Delivery potential method that Clearing Members amended to include anti-money Procedures so that there is consistent or Sponsored Principals may use to laundering laws to the list of applicable usage across the Procedures. satisfy capital requirements. Instead, the laws that are required to be acceptable Clearing House could, at its discretion, to the Clearing House in a jurisdiction An amendment is proposed to require a Clearing Member to post for Clearing Members. Clearing Procedures paragraph 1.1(a) as additional cash or collateral in addition New Rule 201(a)(xxxiii) is proposed the referenced PTMS/ACT systems are to the normal margin requirements to be added to require Clearing Members legacy systems no longer used by the pursuant to the amendments. to have adequate policies, procedures, Clearing House, and have been replaced systems and controls relating to with ICE FEC. v. Replacement of Prospectus Directive Applicable Laws, including relating to Amendments are proposed to Clearing anti-money laundering and the Amendments are proposed to Part Procedures paragraphs 1.1(f) and 3.1(c) prevention of financial crime. 1501 of the Rules to change the to remove the definitions of MFT and definition of ‘‘Prospectus Directive’’ to Amendments are proposed to Rules 202(a)(xii) and 1901(m) to update ECS as these terms would now be ‘‘Prospectus Regulation’’ as the EU defined in the Delivery Procedures. Prospectus Directive has been repealed relevant references to relevant laws, and replaced with the Prospectus clarify that the Clearing Member is Similar amendments are proposed to Regulation. Conforming changes would required to make certain representations Finance Procedures paragraphs 3.10, be made to the definitions of ‘‘Offer to and warranties to the Clearing House 3.11, 3.21 and 4.5 to ensure that the use the Public’’, ‘‘Relevant Member State’’ with respect to the matters in those of defined term ‘‘ECS’’ is consistent. subsections, require the Clearing and ‘‘Securities’’. The definition of z. Clarifications Relating to Negative Member to have the necessary authority ‘‘2010 PD Amending Directive’’ (and EDSP references thereto) would be deleted as from customers and others to disclose this is also no longer in force. the necessary information about The definition of ‘‘Exchange Delivery Conforming changes would be made in beneficial owners in order to comply Settlement Price’’ in Rule 101 would be Rule 1503 to remove obsolete legislative with requirements under Applicable amended to clarify, for the avoidance of references. Laws, and to retain copies of documents doubt, that the EDSP can be positive, required to be retained under anti- negative or zero. w. Changes to Clearing Member money laundering laws. Account Requirements A similar amendment is proposed to Rule 703(b) would be revised to clarify the process for payment Amendments to the Finance Rule 1607(g) to require FCM/BD obligations if the EDSP is a negative Procedures in paragraphs 4.1(a)(i) and Customers to also obtain the authority number. (iv) and 4.4(a)(i) and (iv) are proposed from ‘‘beneficial owners’’ to disclose to the account requirements for information to the Clearing Member and aa. Clarification to the Finance members to reflect that ICE Clear Europe Clearing House necessary for anti- Procedures clears both EUR and USD denominated money laundering due diligence. CDS contracts and as such all CDS Similar amendments are also Amendments are proposed to Clearing Members are required to have proposed to the CDS Standard Terms paragraph 6.1(i)(ix) of the Finance both EUR and USD accounts (and need 3(q), F&O Standard Terms 3(r) and FX Procedures to clarify that the additional not have a GBP account). Standard Terms 3(q) to require margin requirement that applies where Customers to obtain the necessary payment of variation or mark-to-market x. Updates for Changes to Applicable authority from beneficial owners to margin is made in a currency other than Anti-Money Laundering Law make disclosure to the Clearing Member the contractual currency would apply Amendments are proposed in Rule and Clearing House necessary for anti- on a Currency Holiday. This reflects 101 to update the definition of ‘‘Money money laundering due diligence. current Clearing House practice.
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bb. Amendments to Delivery Procedures instead of just paragraph 7.3. The may substitute a letter of indemnity in Various changes are proposed to the amendments would provide that the favor of the Buyer would be removed. Various other typographical Delivery Procedures to update Clearing Members and Clearing House corrections and updates to use of provisions to update various operational would have a reasonable period of time defined terms and cross-references are practices and make other drafting after the Failed Delivery to enter into an made throughout the Delivery improvements. EADP Agreement or effect delivery Procedures. It is proposed that a new paragraph 7 under EADP instead of only until the be added to the Delivery Procedures to close of business on the Business Day cc. Introduction of a Summary reference the alternative delivery following the day of the Failed Delivery Disciplinary Process and Other procedure for Emission Contracts as set before the Clearing House refers the Disciplinary Process Updates out in paragraph A.7 of the Delivery matter to the relevant exchange. Pursuant to the amendments, the Amendments would be made to the Procedures. Subsequent paragraphs Rules to introduce a summary fining would be renumbered and conforming Clearing House would also consider what reasonable next steps it should power for the Clearing House (in line amendments to cross-references would take. The Clearing House could decide with other ICE exchanges for which ICE be made. to take one of the listed steps, but Clear Europe provides clearing services) Various changes would made and to make certain minor drafting throughout to remove references to the pursuant to the amendments would not be limited by the list and would not be improvements to the disciplinary legacy ICE System Crystal, and update required to Invoice Back affected process provisions of the Rules. The this to refer to ECS, MFT and ICE FEC Contracts. intention behind these provisions is to which are the systems now used by the Part M (ICE Endex German Power introduce a more streamlined Clearing House. Similarly, changes are Futures) would be deleted as these sanctioning process for clear-cut and proposed to delete Delivery contracts have been delisted from the minor rules violations, examples of Documentation Summaries and form relevant exchange. which are cited in the rule itself and references where ECS has replaced the In Part N, outdated references to ICE discussed further below, rather than manual submission of forms to the OTC Contracts would be deleted. having these subject to the formal and Clearing House. These changes are made In Part U, new provisions relating to more cumbersome proceedings of a throughout the Delivery Procedures, failed settlement and non-delivery of disciplinary committee. including in relation to ICE Gasoil securities under a Financials & Softs In Rule 101, the definition of ‘‘Appeal Futures (in Part B), and ICE Futures UK Gilt Contract would be added, including Panel’’ would be amended to include Natural Gas Contracts (in Part D), ICE as to the steps the Clearing House can reference to the new Summary Endex TTF Natural Gas Contracts (in take to promote settlement in Disciplinary Process. Also in Rule 101, Part F), ICE Endex Gaspool Natural Gas accordance with the contract terms and a new definition of ‘‘Summary Contracts (in Part G), ICE Endex NCG the requirements of the CREST central Disciplinary Process’’ would be Natural Gas (in Part H), ICE Endex ZTP securities depository and allocation of introduced. Natural Gas Contracts (in Part I), ICE the costs of such steps to the Clearing A minor amendment is proposed to Deliverable US Emissions Contracts (in Member that failed to make delivery. Rule 102(j) to refer to new Rule 1008 in Part N), Financials & Softs White Sugar These changes are intended to reflect the context of disciplinary proceedings Contracts (in Part Q), Financials & Softs existing practices and provide under the Rules. An amendment is Gilt Contract (in Part U) and Equity consistency with provisions of the proposed to Rule 102(p) to clarify that Futures/Options (in Part Z). Delivery Procedures for other contracts, Disciplinary Panels, Summary In Part A (ICE Deliverables EU including Part Z. Disciplinary Committees and Appeal Emissions Contracts), references to In Part Z, relating to Equity Futures Panels are also able to exercise ‘‘Account’’, which is no longer a defined and Options, various updates would be discretion in the same way as the term in the Delivery Procedures, would made to reference the correct settlement Clearing House. be corrected to reference the defined facilities and relevant settlement details Amendments are proposed to 1002(i) term, ‘‘Registry Account’’. The defined and settlement procedures. The and 1003(b) to make reference to the term, ‘‘Contract Date’’, would be treatment of corporate events relating to new Summary Disciplinary Process. In amended such that it would no longer underlying securities would be clarified 1005(c), the word ‘‘exclusive’’ would be include a Business Day on which the through reference to the relevant deleted in relation to discretion, as Rule Delivery Period commences for those Exchange corporate action policy. 102(p) now governs this matter. trades executed on a Business Day. Provisions dealing with failed deliveries New Rule 1005(g) would be added to Section 9.3 would be deleted as and partial deliveries would also be make clear that Rule 1005 applies as the unnecessary as Part A no longer clarified, including as to the steps the appeal process for the Summary references auction contracts. Clearing House may take to facilitate Disciplinary Process. Also in Part A, the procedures delivery, the rights and responsibilities Proposed Rule 1008 would be following the entry into an EADP of the buying clearing member with introduced to set out the new summary Agreement by a Clearing Member and respect to onward deliveries under other disciplinary process against a Clearing the Clearing House would be amended contracts and the allocation of costs to Member, clarifying the situations in such that the existing Contract would no clearing members. The buying-in which these new Rules apply, the longer be liquidated, but instead dealt timetable would also be clarified. Other sanctioning power of the Summary with in the manner specified in the typographical corrections and similar Disciplinary Process and the process by EADP. If the existing Contract were to drafting clarifications would be made which the Summary Disciplinary be liquidated under the EADP, this throughout Part Z. Process would be conducted. The would be done on the basis of the In the first table in Part FF, with Summary Disciplinary Process may be Exchange Delivery Settlement Price. respect to the receipt of documents by applied in relation to: The late filing or Delivery under the EADP Agreement the Clearing House, the statement that submission of any document, notice or would be subject to the requirements set in the event of non-availability of any of information; the late making of any out in the entirety of paragraph 7 the listed delivery documents, Seller payment; any failure to record a
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Contract in the correct Account; the late ensure that the defined term includes definition ‘‘Mark-to-Market Price’’. A making or taking of any delivery; any securities clearing agencies regulated by change would similarly be made at Rule breach of Rule 202(a)(xix) (participation the SEC. 905(g) to delete a reference to ‘‘Market- in default management simulations, In the ‘‘Defaulter’’ definition, to-Market Value’’ as well as the unused new technology testing and other amendments would clarify that the term Reference Price. exercises); any breach of Rule 503(g) defined term refers to a person in An amendment is proposed to Rule (the submission of end-of-day prices respect of whom an Event of Default has 905(b)(ix) to reflect that there may be relating to Sets of CDS Contracts occurred, rather than a person in respect multiple Defaulters rather than just one. required of Clearing Members to aid in of whom a Default Notice has been Amendments to Rule 908(i) would the establishment of Mark-to-Market issued. correct typographical errors and an Prices); any breach of a position limit A new definition of ‘‘FINRA’’ incorrect cross-reference. under Part 6 of the Rules; any breach of referencing the U.S. Financial Industry Rule 908(ii) would be amended to any provision of the Rules or Procedures Regulatory Authority, the self-regulatory reflect that the applicable modifications considered by the Clearing House to be body of several US clearing members, would be set out in the Default Auction of a factual nature where the Clearing would be added. The term is currently Procedures as opposed to a Circular. House holds sufficient evidence of such used but in the definition of Regulatory In the definition of ‘‘MTM/VM’’ in facts; any breach of any provision of the Authority, but is not defined. Rule 913(a)(xxxi), amendments would Rules or Procedures considered by the The definition of ‘‘Original Margin’’ be proposed to reflect that MTM/VM is Clearing House to be minor in nature; or would be amended to clarify that transferred to rather than held as a any breach of the Rules or Procedures buyer’s security, seller’s security and deposit by the Clearing House. which the Clearing House considered delivery margin would all be included. The definition of ‘‘Product would be appropriately addressed by The ‘‘Regulatory Authority’’ Termination Amount’’ in Rule the Summary Disciplinary Process. definition would also be updated to 913(a)(xxxviii) is proposed to be deleted Sanctions pursuant to proposed Rule include reference to ‘‘National Futures as this term is already defined in Rule 1008 would be limited to the following: Association’’, a self-regulatory body in 916. Issuance of a private warning or the U.S. which supervises several A minor amendment is proposed to reprimand naming the Clearing Member clearing members. Rule 913(a)(lviii) to clarify for the or a Clearing Member Customer, client The definition of ‘‘Rule Change’’ avoidance of doubt that amounts or Representative; a fine of up to would be amended expressly to include payable in respect of transfers are £50,000; or any combination of the changes to the Contract Terms. Rule included in the definition of ‘‘Transfer foregoing. 109(b)(vii) and (viii) and 109(k) already Cost’’. Proposed Rule 1008 would also assume that the definition ‘‘Rule A correction would be made to Rule specify the process of imposing any Change’’ covers changes to Contract 915(e) to refer to correctly reference all sanction, including the notice process Terms, but the definition itself is categories of mark-to-market or variation by the Clearing House, the opportunity inconsistently narrower. The cross margin for all product categories. for a Clearing Member to appeal, the reference to Rule 109 would be clarified Clarifications would be made to Rule grounds for appeal and the actions the to reflect that it is not the sole provision 916(i) to be clear that Guaranty Fund appeal panel may take (i.e., to affirm, governing the process for Rule Changes. and Assessment contributions due vary or revoke a sanction). It would also In the definition of ‘‘Segregated pursuant to Rule 916(i) are subject to the allow the Clearing House to provide Customer’’, typographical corrections provisions of Rule 917 (including the further guidance by way of Circular in would be made. limitations thereon during a Cooling-off relation to the operation of the The definitions of ‘‘Transferee’’ and Period). Summary Disciplinary Process. ‘‘Transferor’’ would be revised to clarify Rule 918(d) would be clarified to refer that the subject of a transfer or delivery to any Event of Default rather than dd. Other Proposed Drafting is a Deliverable (as defined in the multiple Events of Default. Enhancements and Improvements Rules). It is proposed to incorporate A number of other drafting Rule 201(a)(v) is proposed to be references to Rules 916 and 918 into enhancements, clarifications and amended to correct an erroneous use of Rule 1102(g) to reflect that these Rules improvements are proposed. the singular ‘‘Contract’’ when the plural are also applicable in certain cases to This includes a number of ‘‘Contracts’’ should be used. determining the return of Guaranty amendments to the definitions in Rule Rules 304(a)(ii)(A), 304(a)(ii)(B) and Fund contributions. 101. A new definition of ‘‘Acceptance 1901(e) would be amended to correctly Rule 1901(d)(vi) would be deleted Time’’ would be added. The definition reference the term ‘‘Nominated Bank because the Council Directive is consistent with the definitions Account’’. referenced by this provision has been currently in the CDS Procedures and FX A clarification is proposed to Rule repealed. Subsequent provisions would Procedures, and would be added to the 401(g) to reflect that under existing be renumbered and cross-references in Rules for clarity given that the term is practice and as stated and assumed other provisions updated. used in the Rules, e.g., Rule 1204 and elsewhere in the Rules (e.g., Rule 906, A typographical error in the title of also in paragraph 10 of Standard Terms Clearing Procedures), Clearing Members Part 23 would be corrected. annexes. can have multiple Proprietary Position Other typographical and similar In the definition of ‘‘Applicable Law’’, Accounts. corrections would be made in various a reference to ‘‘the FSMA’’ would be Rule 406(a) would be amended to provisions of the Rules, including added. This important piece of UK remove an erroneous reference to the 102(q), 202(a)(xxi), 203(a)(xx) and legislation for CCPs, such as ICE Clear legacy term ‘‘Clearing Processing 504(c)(vi). Europe, was unintentionally omitted System’’ and replace it with the correct Part 3(b) of the F&O Standard Terms from the ‘‘Applicable Law’’ definition. defined term ‘‘ICE System’’. would be amended to more clearly state In the ‘‘Clearing Organisation’’ Rule 904(b) would be amended to that Customer-CM F&O Transactions definition, a reference to ‘‘securities correct the use of an incorrect term would arise in accordance with Part 4 clearing agency’’ would be added, to ‘‘Market-to-Market Value’’ to the correct of the Rules. This change would align
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with the drafting used in the other of the rules including by fine, censure thus facilitate the process of post-default Standard Terms. or any other fitting sanction. Section porting in a manner consistent with Proposed clarifications would be 17A(b)(3)(H) of the Act 14 requires that applicable regulations, including the made to Rule 1607(d)(iii), CDS Standard a clearing agency provide a fair requirements of Rule 17Ad–22(e)(14),18 Terms 7(iii), F&O Standard Terms 7(iii) procedure with respect to the while avoiding the concerns created by and FX Standard Terms 7(iii) to refer to disciplining of participants. The the existing process. ‘‘Personal Data’’ rather than ‘‘Personal addition of the new Summary Further, proposed amendments to Data of its Data Subjects’’. This change Disciplinary Process would enable the Rule 209(d) would facilitate the process eliminates unnecessary language. Clearing House to impose appropriate of porting positions, pre-default, in the A minor change is proposed to fines or to censure appropriate parties in context of a corporate group paragraph 15.4(b) of the Finance the event of a rule violation. It would reorganization where a new Clearing Procedures to delete an outdated also specify the process of imposing any Member that is an Affiliate will be reference to the Continuing CDS Rule sanction, including the notice process receiving the terminating Clearing Provisions, which are no longer in by the Clearing House, the opportunity Member’s Open Contract Positions, and effect. for a Clearing Member to appeal, the thereby facilitate the Clearing House’s grounds for appeal and the actions the compliance with requirements of Rule (b) Statutory Basis appeal panel may take (i.e., to affirm, 17Ad–22(e)(14) 19 to enable portability ICE Clear Europe believes that the vary or revoke a sanction). As such, by of customer positions and collateral. proposed rule changes are consistent enabling appropriate disciplining of (ii) Operational Risk with the requirements of Section 17A of participants and providing a fair the Act 9 and the regulations thereunder procedure relating to this process, ICE Rule 17Ad–22(e)(17)(i) 20 requires that applicable to it, including the standards Clear Europe believes the amendments a clearing agency manage its operational under Rule 17Ad–22.10 In particular, are consistent with the requirements of risks through appropriate policies and Section 17A(b)(3)(F) of the Act requires Section 17A(b)(3)(G) and (H) of the procedures. The amendments to the that that rule changes be consistent with Act.15 notices provisions would facilitate the prompt and accurate clearance and The amendments are also consistent electronic notice, including for default settlement of securities transactions and with the relevant specific requirements notices under Rule 901 and other derivative agreements, contracts and of Rule 17Ad–22,16 as set forth in the notices more generally under Rule 113. transactions cleared by ICE Clear following discussion: These clarifications better ensure appropriate and timely notices will be Europe, the safeguarding of securities (i) Portability and funds in the custody or control of provided, reducing operational risks ICE Clear Europe or for which it is Rule 17Ad–22(e)(14) 17 requires that relating to timely receipt of notices. responsible, and the protection of clearing agencies maintain policies and Further, proposed amendments to investors and the public interest.11 As procedures which enable the Rule 202(a)(xxii) would extend the discussed herein, the proposed rule segregation and portability of customer’s requirement for Clearing Members to changes are principally designed to positions and collateral. The have competent persons accessible to clarify various aspects of the Rules and amendments provide greater clarity the Clearing House to also include the Procedures to improve drafting and to with respect to providing porting two hours prior to the start of the update the Rules and Procedures to instructions. The amendments would business day, to ensure that operational ensure consistency with current remove the existing process whereby policies are consistent with consistent operational practices and processes as Non-FCM/BD Clearing Members may with operational practices and ensures well as current applicable laws and deliver a ‘‘Default Portability that staff are available to process and regulations. In ICE Clear Europe’s view, Preference’’, with advance porting deal with questions in relation to these changes would therefore facilitate information, to the Clearing House, an morning margin calls. The amendment the prompt and accurate clearance and option that was rarely used and that has would thus reduce the operational risks settlement of transactions through the proven to be impractical and has been of not being able to address such calls Clearing House and would generally be superseded by requirements under in a timely manner. The proposed changes at Rule 301(o) consistent with the protection of EMIR that post-default porting notices enhance the Clearing House’s ability to investors and the public interest. be served prior to porting, which request information when needed on Furthermore, ensuring that the Rules limited the value of instructions account balances, including for the and Procedures are clear, including with provided prior to default. The amendments will also clarify the purpose of calling on available cash respect to matters such as portability, process for providing post-default where the Clearing Member has failed to will enhance the safeguarding of porting notices. The amendments will meet a payment obligation, and are securities and funds in the custody or expected to reduce operational risks that control of the Clearing House or for 14 15 U.S.C. 78q–1(b)(3)(H). may arise where the Clearing House which it is responsible. As such, ICE 15 15 U.S.C. 78q–1(b)(3)(G) and (H). may not otherwise have access to such Clear Europe believes the amendments 16 17 CFR 240.17Ad–22. information. are consistent with the requirements of 17 17 CFR 240.17Ad–22(e)(14) which states that 12 ‘‘[e]ach covered clearing agency shall establish, Section 17A(b)(3)(F) of the Act. 18 Further, Section 17A(b)(3)(G) of the implement, maintain and enforce written policies 17 CFR 240.17Ad–22(e)(14). 19 17 CFR 240.17Ad–22(e)(14). 13 and procedures reasonably designed to, as Act requires that clearing agency rules applicable: (14) Enable, when the covered clearing 20 17 CFR 240.17Ad–22(e)(17)(i) which states that provide that its participants shall be agency provides central counterparty services for ‘‘[e]ach covered clearing agency shall establish, appropriately disciplined for violations security-based swaps or engages in activities that implement, maintain and enforce written policies the Commission has determined to have a more and procedures reasonably designed to, as complex risk profile, the segregation and portability applicable: (17) Manage the covered clearing 9 15 U.S.C. 78q–1. of positions of a participant’s customers and the agency’s operational risks by: (i) Identifying the 10 17 CFR 240.17Ad–22. collateral provided to the covered clearing agency plausible sources of operational risk, both internal 11 15 U.S.C. 78q–1(b)(3)(F). with respect to those positions and effectively and external, and mitigating their impact through 12 15 U.S.C. 78q–1(b)(3)(F). protect such positions and related collateral from the use of appropriate systems, policies, 13 15 U.S.C. 78q–1(b)(3)(G). the default or insolvency of that participant.’’ procedures, and controls.’’
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(iii) Legal Basis and/or Clearing Member. These process in such case, consistent with 27 Rule 17Ad–22(e)(1) 21 requires that a requirements support the well-founded Rule 17Ad–22(e)(10). clearing agency provide for a well- basis for the Clearing House’s operation Proposed amendments to the Delivery founded legal basis for each aspect of its under applicable anti-money laundering Procedures will clarify other aspects of activities in all relevant jurisdictions. laws. the physical settlement process. The amendments to Rule 201(a)(ix) Overall, these changes, as well the Proposed new paragraph 7 to the would clarify that the Clearing House numerous other changes to improve the Delivery Procedures will contemplate may require that potential Clearing drafting and clarity of the Rules and an alternative delivery procedure for Members enter into additional annexes/ Procedures, are generally consistent certain Emission Contracts in the event agreements to the Clearing Membership with establishing a well-founded legal of a failed delivery. In Part U, new Agreement in accordance with Rule framework for the Clearing House’s provisions relating to failed settlement 201(b) in order to be, and remain, operations, within the meaning of Rule and non-delivery of securities under a 22 eligible for Clearing Membership. The 17Ad–22(e)(1). Financials & Softs Gilt Contract would Clearing House would expect to impose (iv) Margin be added, including as to the steps the such requirements where necessary to Clearing House can take to promote Rule 17Ad–22(e)(6) require that a comply with or address post-Brexit local settlement in accordance with the covered clearing agency establish a risk- law group structuring issues, including contract terms and the requirements of based margin system that, among other as applicable to its Clearing Members the CREST central securities depository matters, ‘‘[m]arks participant positions located in certain EU member states. and allocation of the costs of such steps to market and collects margin, including This change would clarify the legal to the Clearing Member that failed to variation margin . . ., at least daily.’’ 23 basis under the Rules for the Clearing make delivery. Updates to Part Z would Rule 1603(c) would be amended to House to require additional be made to reference the correct clarify that only ‘‘original’’ or ‘‘initial’’ documentation to be executed, where settlement facilities and relevant types of Margin payments would be necessary. settlement details and settlement provided in the form of Pledged The proposed amendments to Rule procedures. Part Z provisions dealing Collateral, and that such collateral 1901(b)(xv), Rule 1901(d)(ix), Rule with failed deliveries and partial excludes Variation Margin, Mark-to- 201(a)(xx) and Section 10 of the F&O deliveries would also be clarified. Market Margin and FX Mark-to-Market Standard Terms, which would remove Throughout the Delivery Procedures, Margin which is provided to or by the the requirement for Clearing Members, the delivery documentation summaries, Clearing House by outright transfer of Customer and Sponsored Principals to timetables and other relevant provisions cash as a settlement payment. This be ‘‘eligible contract participants’’ if will be updated and clarified to reflect amendment is consistent with the they are solely engaging in F&O current operational processes and treatment of variation and mark-to- Contracts, is intended to remove an Clearing House systems and to remove market margin as settlement unnecessary requirement for such outdated references and language. payments,24 as provided elsewhere in Contracts while ensuring that the Taken together, these changes will the Rules and Procedures, and in ICE membership requirements remain establish and update transparent written Clear Europe’s view is consistent with compliant with applicable US laws. standards associated with physical the margin framework requirements The amendments to paragraph 3.5(a) deliveries, consistent with the under Rule 17Ad–22(e)(6).25 of the Membership Procedures to lower requirements of Rule 17Ad–22(e)(10).28 the threshold at which the Clearing (v) Settlement and Physical Delivery House will require a written (vi) Governance Arrangements undertaking from a Clearing Member to Rule 17Ad–22(e)(10) requires that a Rule 17Ad–22(e)(2)(i) 29 requires that not repay subordinated loans will align covered clearing agency ‘‘establish and a clearing agency have governance the Rules more closely with Basel III maintain transparent written standards requirements applicable to Clearing that state its obligations with respect to arrangements that are clear and Members. the delivery of physical instruments, transparent. The proposed amendments The various amendments to address and establish and maintain operational to Rule 916(d) would change ‘‘Risk applicable anti-money laundering laws practices that identify, monitor, and Committee’’ to ‘‘relevant product risk in the EU and UK, including to address manage the risks associated with such committee’’ to reflect the different requirements to provide necessary physical deliveries.’’ 26 The proposed product risk committees addressing information for due diligence checks, amendment to the definition of topics specific to F&O and CDS are intended to facilitate compliance by ‘‘Exchange Delivery Settlement Price’’ Contracts. Similar changes would be the Clearing House, Clearing Members, in the Rules will clarify for the made to references to relevant risk Sponsored Principals and Customers avoidance of doubt that the EDSP can be committees in certain Procedures, as with applicable anti-money laundering positive, negative or zero. The discussed above. In ICE Clear Europe’s laws. Similarly, amendments to the amendments will also clarify the view, these amendments would clarify Delivery Procedures would obligate procedure for payment of the EDSP in governance descriptions in the Rules Clearing Members to conduct a physical settlement where the EDSP is and Procedures to more clearly and appropriate anti-money laundering negative. The amendments will thus accurately reflect established AML due diligence for any transferors/ clarify and enhance the settlement arrangements, and are thus consistent transferees and provide relevant with Rule 17Ad–22(e)(2)(i). documentation to the Clearing House 22 17 CFR 240.17Ad–22(e)(1). 23 17 CFR 240.17Ad–22(e)(6). 27 17 CFR 240.17Ad–22(e)(10). 24 21 17 CFR 240.17Ad–22(e)(1) which states that As discussed above, the amendments are also 28 17 CFR 240.17Ad–22(e)(10). ‘‘[e]ach covered clearing agency shall establish, consistent with the approach provided for in 29 17 CFR 240.17Ad–22(e)(2)(i) which states that implement, maintain and enforce written policies Exchange Act Release No. 34–88665 (File No. SR– ‘‘[e]ach covered clearing agency shall establish, and procedures reasonably designed to, as ICEEU–2020–003) (Apr. 16, 2020), 85 FR 22892 implement, maintain and enforce written policies applicable: (1) Provide for a well-founded, clear, (Apr. 23, 2020). and procedures reasonably designed to, as transparent, and enforceable legal basis for each 25 17 CFR 240.17Ad–22(e)(6). applicable: (2) Provide for governance arrangements aspect of its activities in all relevant jurisdictions.’’ 26 17 CFR 240.17Ad–22(e)(10). that: (i) Are clear and transparent;’’.
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(vii) Membership Criteria appropriate in furtherance of the IV. Solicitation of Comments purpose of the Act. The amendments are Rule 17Ad–22(e)(18) requires covered Interested persons are invited to clearing agencies to establish criteria for generally intended to improve drafting clarity in the Rules and Procedures and submit written data, views, and participation which ensures participants arguments concerning the foregoing, have sufficient financial resources and update various provisions to refer to current laws and operational and other including whether the proposed rule robust operational capacity to meet change is consistent with the Act. processes, including with respect to obligations arising from participation Comments may be submitted by any of 30 such matters as portability, settlement and to monitor compliance. Proposed the following methods: amendments would extend the hours and delivery procedures, updated during which staff are available to system references, anti-money Electronic Comments process and deal with questions in laundering procedures and similar • relation to morning margin calls, which matters. Overall, ICE Clear Europe does Use the Commission’s internet strengthen operational capacity to meet not expect the amendments would comment form (http://www.sec.gov/ obligations arising from participation. impose any material new obligations on rules/sro.shtml) or The amendments would also clarify Clearing Member. Further, ICE Clear • Send an email to rule-comments@ certain requirements as to member Europe does not expect that the sec.gov. Please include File Number SR– Capital, including to reference updated proposed changes will adversely affect ICEEU–2021–010 on the subject line. capital standards and to limit the use of access to clearing or the ability of Paper Comments certain subordinated debt as capital. Clearing Members, their customers or These amendments are intended to be other market participants to continue to • Send paper comments in triplicate consistent with the requirements of the clear contracts. ICE Clear Europe also to Secretary, Securities and Exchange Basel III capital framework applicable to does not believe the amendments would Commission, 100 F Street NE, most Clearing Members. In ICE Clear materially affect the cost of clearing or Washington, DC 20549–1090. Europe view, the amendments otherwise limit market participants’ All submissions should refer to File accordingly set appropriate Capital choices for selecting clearing services. requirements for Clearing Members, Number SR–ICEEU–2021–010. This file Accordingly, ICE Clear Europe does not number should be included on the consistent with the requirements of Rule believe the amendments would impose 17Ad–22(e)(18). subject line if email is used. To help the any burden on competition not Commission process and review your (viii) Default Management necessary or appropriate in furtherance comments more efficiently, please use Rule 17Ad–22(e)(13) 31 requires a of the purpose of the Act. only one method. The Commission will covered clearing agency to ensure that it (C) Clearing Agency’s Statement on post all comments on the Commission’s ‘‘has the authority and operational Comments on the Proposed Rule internet website (http://www.sec.gov/ rules/sro.shtml). Copies of the capacity to take timely action to contain Change Received From Members, submission, all subsequent losses and liquidity demands’’ in the Participants or Others case of default. amendments, all written statements The amendments would, as noted ICE Clear Europe conducted a with respect to the proposed rule above, clarify certain aspects of the consultation with respect to the change that are filed with the Clearing House’s default management proposed amendments to the Rules set Commission, and all written procedures, including the use of post- forth herein.33 No written comments communications relating to the default porting notices and the manner relating to the proposed amendments proposed rule change between the of delivering default notices. The have been received by ICE Clear Europe. Commission and any person, other than amendments would clarify the ability of ICE Clear Europe will notify the those that may be withheld from the the Clearing House to use hedging post- Commission of any comments received public in accordance with the default, and clarify certain aspects of the with respect to the proposed rule provisions of 5 U.S.C. 552, will be definition of Event of Default, change. available for website viewing and particularly in connection with defaults printing in the Commission’s Public of affiliated Clearing Members. A III. Date of Effectiveness of the Reference Room, 100 F Street NE, number of other drafting improvements Proposed Rule Change and Timing for Washington, DC 20549, on official would be made in the Part 9 of the Commission Action business days between the hours of Rules, as discussed above. In ICE Clear 10:00 a.m. and 3:00 p.m. Copies of such Europe’s view, these amendments will Within 45 days of the date of filings will also be available for generally enhance the Clearing House’s publication of this notice in the Federal inspection and copying at the principal default management procedures and Register or within such longer period office of ICE Clear Europe and on ICE facilitate its ability to take timely action up to 90 days (i) as the Commission may Clear Europe’s website at https:// in the case of a default to contain losses, designate if it finds such longer period www.theice.com/clear-europe/ consistent with the requirements of Rule to be appropriate and publishes its regulation. 32 17Ad–22(e)(13). reasons for so finding or (ii) as to which All comments received will be posted the self-regulatory organization (B) Clearing Agency’s Statement on without change. Persons submitting consents, the Commission will: Burden on Competition comments are cautioned that we do not (A) By order approve or disapprove redact or edit personal identifying ICE Clear Europe does not believe the such proposed rule change, or information from comment submissions. proposed amendments would have any You should submit only information impact, or impose any burden, on (B) institute proceedings to determine that you wish to make available competition not necessary or whether the proposed rule change should be disapproved. publicly. All submissions should refer to File Number SR–ICEEU–2021–010 30 17 CFR 240.17Ad–22(e)(18). and should be submitted on or before 31 17 CFR 240.17Ad–22(e)(13). 33 ICE Clear Europe Circular C21/013 (Feb. 2, 32 17 CFR 240.17Ad–22(e)(13). 2021). June 23, 2021.
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For the Commission, by the Division of SURFACE TRANSPORTATION BOARD filing on the Board’s website. In Trading and Markets, pursuant to delegated addition, a copy of each pleading must authority.34 [Docket No. FD 36519] be served on GSIR’s representative, J. Matthew DeLesDernier, Gulf & Ship Island Railroad LLC— Thomas F. McFarland, Thomas F. Assistant Secretary. Lease and Operation Exemption—Rail McFarland, P.C., 2230 Marston Lane, [FR Doc. 2021–11529 Filed 6–1–21; 8:45 am] Line of Harrison County Development Flossmoor, IL 60422–1336. According to GSIR, this action is BILLING CODE 8011–01–P Commission at or Near Gulfport, Harrison County, MS categorically excluded from environmental review under 49 CFR Gulf & Ship Island Railroad LLC 1105.6(c) and from historic reporting (GSIR), a noncarrier, has filed a verified requirements under 49 CFR 1105.8(b). SMALL BUSINESS ADMINISTRATION notice of exemption under 49 CFR Board decisions and notices are 1150.31 to lease from the Harrison available at www.stb.gov. [License No. 02/02–0695] County Development Commission, Decided: May 27, 2021. acting with the Harrison County Board QS Capital Strategies II, L.P.; Notice By the Board, Scott M. Zimmerman, Acting of Supervisors (the County), and operate Director, Office of Proceedings. Seeking Exemption Under Section 312 approximately five miles of industrial Brendetta Jones, of the Small Business Investment Act, lead tracks known as the Seaway Lead, Clearance Clerk. Conflicts of Interest extending between a point approximately 800 feet east of U.S. [FR Doc. 2021–11589 Filed 6–1–21; 8:45 am] Notice is hereby given that QS Capital Highway 49 on the Seaway Lead and the BILLING CODE 4915–01–P Strategies II, L.P., 527 Madison Avenue, end of the Seaway Lead at Bernard Bayou Industrial Park, at or near 11th Floor, New York, NY 10022, a SURFACE TRANSPORTATION BOARD Federal Licensee under the Small Gulfport, in Harrison County, Miss. (the Business Investment Act of 1958, as Line). [Docket No. FD 36472; Docket No. FD 36472 amended (‘‘the Act’’), in connection This transaction is related to a (Sub-No. 1); Docket No. FD 36472 (Sub-No. 2); Docket No. FD 36472 (Sub-No. 3); Docket with the financing of a small concerns, concurrently filed verified notice of exemption in Chicago, Rock Island & No. FD 36472 (Sub-No. 4); Docket No. FD has sought an exemption under Section 36472 (Sub-No. 5); Docket No. AB 1312X] 312 of the Act and Section 107.730, Pacific Railroad LLC—Continuance in Financings which Constitute Conflicts Control Exemption—Gulf & Ship Island CSX Corporation and CSX of Interest of the Small Business Railroad LLC, Docket No. FD 36420, in Transportation, Inc., et al.—Control which Chicago Rock Island & Pacific Administration (‘‘SBA’’) Rules and and Merger—Pan Am Systems, Inc., LLC seeks to continue in control of GSIR Regulations (13 CFR 107.730). QS Pan Am Railways, Inc., Boston and upon GSIR’s becoming a Class III rail Capital Strategies II, L.P. is proposing to Maine Corporation, Maine Central carrier. Railroad Company, Northern Railroad, provide financing to BrandMuscle, Inc. GSIR states that it has reached an to support the Company’s growth. Pan Am Southern LLC, Portland agreement with the County pursuant to Terminal Company, Springfield The proposed transaction is brought which GSIR will lease the Line from the Terminal Railway Company, Stony within the purview of § 107.730 of the County and operate it. GSIR further Brook Railroad Company, and Vermont Regulations because QS Capital states that the proposed transaction does & Massachusetts Railroad Company; Strategies, L.P., an Associate of QS not involve any provision or agreement Norfolk Southern Railway—Trackage Capital Strategies II, L.P., by virtue of that would limit GSIR’s future Rights Exemption—CSX Common Control as defined at § 107.50, interchange of traffic on the Line with Transportation, Inc.; Norfolk Southern holds a debt investment in a third-party connecting carrier. Railway—Trackage Rights GSIR certifies that its projected BrandMuscle, Inc. and the proposed Exemption—Providence & Worcester annual revenues as a result of this transaction would discharge an Railroad; Norfolk Southern Railway— transaction will not result in GSIR’s obligation to an Associate. Trackage Rights Exemption—Boston & becoming a Class II or Class I rail Maine Corp.; Norfolk Southern Therefore, the proposed transaction is carrier. GSIR further certifies that its Railway—Trackage Rights considered self-deal pursuant to 13 CFR projected annual revenue will not Exemption—Pan Am Southern LLC; 107.730 and requires a regulatory exceed $5 million. Pittsburg & Shawmut Railroad— exemption. Notice is hereby given that The transaction may be consummated Operation Exemption—Pan Am any interested person may submit on or after June 16, 2021, the effective Southern LLC; SMS Rail Lines of New date of the exemption (30 days after the written comments on the transaction York, LLC—Discontinuance verified notice was filed). within fifteen days of the date of this Exemption—in Albany County, N.Y. publication to Associate Administrator If the verified notice contains false or for Investment, U.S. Small Business misleading information, the exemption AGENCY: Surface Transportation Board. Administration, 409 Third Street SW, is void ab initio. Petitions to revoke the ACTION: Decision No. 3 in STB Finance Washington, DC 20416. exemption under 49 U.S.C. 10502(d) Docket No. 36472 et al.; notice of may be filed at any time. The filing of rejection of application. Thomas Morris, a petition to revoke will not Acting Associate Administrator, Director, automatically stay the effectiveness of SUMMARY: The Board rejects as Office of SBIC Liquidation, Office of the exemption. Petitions for stay must incomplete an application seeking Investment and Innovation. be filed no later than June 9, 2021 (at approval for CSX Corporation (CSXC), [FR Doc. 2021–11503 Filed 6–1–21; 8:45 am] least seven days before the exemption CSX Transportation, Inc. (CSXT), and BILLING CODE P becomes effective). 747 Merger Sub 2, Inc., to acquire All pleadings, referring to Docket No. control of seven rail carriers owned by FD 36519, should be filed with the Pan Am Systems, Inc. (Systems), and 34 17 CFR 200.30–3(a)(12). Surface Transportation Board via e- Pan Am Railways, Inc. (PAR), and to
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merge six of those railroads into CSXT. Massachusetts Railroad Company announce actions taken by Caltrans that The Board finds that the application (V&M) (collectively, Applicants) filed an are final. The actions relate to a fails to include the information needed application (Application) for Board proposed highway project, interchange to satisfy the Market Analysis approval for: (1) CSXC, CSXT, and 747 improvement of Valley Boulevard at requirement for a ‘‘significant’’ Merger Sub 2 to control the seven PAR Interstate 605 and Temple Avenue in transaction application under our Railroads controlled by Systems and the City of Industry, Los Angeles regulations. However, the applicants are PAR, and (2) CSXT to merge six of the County, State of California. Those permitted to file a revised application. seven railroads into CSXT. This actions grant licenses, permits, and DATES: The effective date of the Board’s proposal is referred to as the Merger approvals for the project. decision is May 26, 2021. Applicants Transaction. In addition to the DATES: By this notice, the FHWA, on may file a revised application at any Application for the proposed Merger behalf of Caltrans, is advising the public time after issuance of the Board’s Transaction, there are several related of final agency actions subject to 23 decision, but no later than August 26, filings for transactions related to the U.S.C. 139(l)(1). A claim seeking 2021. Applicants are directed to file a Merger Transaction: Four notices of judicial review of the Federal agency letter in this docket by June 7, 2021, exemption for Norfolk Southern actions on the highway project will be indicating if and when they anticipate Railway Company to acquire trackage barred unless the claim is filed on or filing a revised application. rights over existing lines owned by four before November 1, 2021. If the Federal ADDRESSES: Any filing submitted in separate railroads; a petition for law that authorizes judicial review of a these proceedings should be filed with exemption to allow Pittsburg & claim provides a time period of less the Board via e-filing on the Board’s Shawmut Railroad, LLC d/b/a Berkshire than 150 days for filing such a claim, website. In addition, one copy of each & Eastern Railroad, to replace then that short time period applies. filing must be sent (and may be sent by Springfield Terminal as the operator of FOR FURTHER INFORMATION CONTACT: For email only if service by email is Pan Am Southern LLC; and a notice of Caltrans: Jason Roach, Senior acceptable to the recipient) to each of exemption to allow SMS Rail Lines of Environmental Planner/Branch Chief, the following: (1) Secretary of New York, LLC to discontinue service Caltrans Division of Environmental Transportation, 1200 New Jersey on and terminate its lease of a rail line Planning, District 7, 100 South Main Avenue SE, Washington, DC 20590; (2) known as the Voorheesville Running Street, Los Angeles, CA 90012. Office Attorney General of the United States, Track. Hours: 8:00 a.m.–5:00 p.m., Pacific c/o Assistant Attorney General, The Board finds that the Application Standard Time, telephone (213) 310– Antitrust Division, Room 3109, fails to include the information needed 2653 or email [email protected]. Department of Justice, Washington, DC to satisfy the Market Analysis For FHWA, contact David Tedrick at 20530; (3) CSX’s 1 and 747 Merger Sub requirement for a ‘‘significant’’ (916) 498–5024 or email david.tedrick@ 2’s representative, Anthony J. LaRocca, transaction application under 49 CFR dot.gov. Steptoe & Johnson LLP, 1330 1180.7. Accordingly, the Board is SUPPLEMENTARY INFORMATION: Effective Connecticut Ave. NW, Washington, DC rejecting the Application as incomplete. July 1, 2007, FHWA assigned, and 20036; (4) Systems’,2 PAR’s, and PAR However, Applicants are permitted to Caltrans assumed, environmental Railroads’ representative, Robert B. file a revised application to remedy the responsibilities for this project pursuant Culliford, Pan Am Systems, Inc., 1700 deficiencies identified in the Board’s to 23 U.S.C. 327. Notice is hereby given Iron Horse Park, North Billerica, MA decision. that Caltrans has taken final agency Additional information is contained 01862; and (5) any other person actions subject to 23 U.S.C. 139(l)(1) by in the Board’s decision served on May designated as a Party of Record on the issuing licenses, permits, and approvals 26, 2021, which is available at service list. for the following highway project in the www.stb.gov. FOR FURTHER INFORMATION CONTACT: State of California. Caltrans, in Amy Ziehm at (202) 245–0391. Decided: May 26, 2021. cooperation with Los Angeles County Assistance for the hearing impaired is By the Board, Board Members Begeman, Metropolitan Transportation Authority available through the Federal Relay Fuchs, Oberman, Primus, and Schultz. (LA Metro), San Gabriel Valley Council Service at (800) 877–8339. Regena Smith-Bernard, of Governments (SGVCOG), Gateway SUPPLEMENTARY INFORMATION: On April Clearance Clerk. Cities Council of Governments 26, 2021, CSX Corporation CSXC, CSXT, [FR Doc. 2021–11507 Filed 6–1–21; 8:45 am] (GCCOG), Los Angeles County 747 Merger Sub 2, Inc. (747 Merger Sub BILLING CODE 4915–01–P Department of Public Works (LACDPW), 2), Systems, PAR, Boston and Maine and City of Industry propose to improve Corporation (Boston & Maine), Maine mobility and relieve congestion, Central Railroad Company (Maine DEPARTMENT OF TRANSPORTATION capacity constraints, and other related Central), Northern Railroad (Northern), deficiencies on Interstate 605 (I–605) at Portland Terminal Company (Portland Federal Highway Administration the Valley Boulevard interchange Terminal), Springfield Terminal including high accident rate locations, Railway Company (Springfield Notice of Final Federal Agency Actions inadequate truck turn paths, Terminal), Stony Brook Railroad on Proposed Highway in California nonstandard lane and shoulder widths Company (Stony Brook), and Vermont & AGENCY: Federal Highway along loop ramps, and noncompliant Administration (FHWA), Department of Americans with Disabilities Act (ADA) 1 CSXT is a wholly owned subsidiary of CSXC. facilities. The actions by the Federal CSXC and CSXT are referred to collectively as CSX. Transportation (DOT). agencies, and the laws under which 2 Systems directly and wholly owns PAR, which ACTION: Notice of limitation on claims in turn directly and wholly owns four rail carriers: for judicial review of actions by the such actions were taken, are described Boston & Maine, Maine Central, Portland Terminal, California Department of Transportation in the Final Initial Study with Negative and Springfield Terminal. Boston & Maine directly Declaration (ND)/Finding of No and wholly owns Northern and Stony Brook, as (Caltrans). well as a 98% interest in V&M. These seven rail Significant Impact (FONSI) for the carriers will be referred to collectively as the PAR SUMMARY: The FHWA, on behalf of project, approved on April 7, 2021, and Railroads. Caltrans, is issuing this notice to in other documents in Caltrans’ project
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records. The ND/FONSI and other DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety project records are available by contact Administration, U.S. Department of Caltrans at the addresses provided Pipeline and Hazardous Materials Transportation, 1200 New Jersey above. The Caltrans ND/FONSI and Safety Administration Avenue SE, Washington, DC 20590– other project records can be viewed and [Docket No. PHMSA–2020–0159 (Notice No. 0001. downloaded at the following Metro 2021–05)] SUPPLEMENTARY INFORMATION: Section Early Action I–605 Valley Blvd. 1320.8(d), title 5, Code of Federal Interchange Improvement Project Hazardous Materials: Information Regulations (CFR) requires PHMSA to website. Collection Activities provide interested members of the This notice applies to all Federal AGENCY: Pipeline and Hazardous public and affected agencies an agency decisions as of the issuance date Materials Safety Administration opportunity to comment on information of this notice and all laws under which (PHMSA), DOT. collection and recordkeeping requests. such actions were taken, including but ACTION: Notice and request for This notice identifies information not limited to: comments. collection requests PHMSA will be 1. Council on Environmental Quality submitting to the Office of Management Regulations SUMMARY: In accordance with the and Budget (OMB) for renewal and 2. National Environmental Policy Act of Paperwork Reduction Act of 1995, this extension. These information 1969, as amended, 42 U.S.C. 4321 et. seq. notice announces that the Information collections are contained in 49 CFR 3. Federal-Aid Highway Act of 1970, 23 Collection Requests (ICRs) discussed 171.6 of the Hazardous Materials U.S.C. 109 below will be forwarded to the Office of Regulations (HMR; 49 CFR parts 171– 4. MAP–21, the Moving Ahead for Progress Management and Budget (OMB) for 180). PHMSA has revised burden in the 21st Century Act (Pub. L. 112–141) renewal and extension. These ICRs estimates, where appropriate, to reflect 5. Clean Air Act Amendments of 1990 current reporting levels or adjustments (CAAA) describe the nature of the information 6. Clean Water Act of 1977 and 1987 collections and their expected burdens. based on changes in proposed or final 7. Federal Water Pollution Control Act of A notice and request for comments with rules published since the information 1972 (see Clean Water Act of 1977 & a 60-day comment period on these ICRs collections were last approved. Please 1987) was published in the Federal Register note that in the February 23, 2021 (86 8. Paleontological Resources Preservation Act on February 23, 2021 under Docket No. FR 11052), notice and request for (16 U.S.C. 470aaa) PHMSA–2020–0159 (Notice No. 2021– comments, PHMSA included an 9. Historic Sites Act of 1935 01). PHMSA did not receive any additional information collection under 10. Safe Drinking Water Act of 1944, as comments in response to this notice. OMB Control Number 2137–0022 titled amended DATES: Interested persons are invited to ‘‘Testing, Inspection, and Marking 11. Endangered Species Act of 1973 Requirements for Cylinders.’’ However, 12. Executive Order 11990, Protection of submit comments on or before July 2, Wetlands 2021. since that publication, PHMSA received a 3-year renewal for this collection 13. Executive Order 13112, Invasive Species ADDRESSES: Written comments and 14. Executive Order 13186, Migratory Birds based on changes associated with a final recommendations for the proposed rule PHMSA published on December 28, 15. Fish and Wildlife Coordination Act of information collections should be sent 1934, as amended 2020, titled ‘‘Hazardous Materials: 16. Migratory Bird Treaty Act within 30 days of publication of this Miscellaneous Amendments Pertaining 17. Department of Transportation Act of notice to www.reginfo.gov/public/do/ to DOT-Specification Cylinders’’ (HM– 1966, 49 U.S.C. 303 PRAMain. Find this particular 234; 85 FR 85380). As this collection 18. Energy Policy and Conservation Act of information collection by selecting has been renewed until May 31, 2024, 1975 (42 U.S.C. Section 6201) ‘‘Currently under 30-day Review—Open OMB Control Number 2137–0022 is no 19. Energy Policy Act of 2005, 109th for Public Comments’’ or by using the Congress H.R.6 (2005–2006) longer contained in this notice for search function. comment and subsequent renewal. The 20. Title VI of the Civil Rights Act of 1964, We invite comments on: (1) Whether following information is provided for as amended the proposed collection of information each information collection: (1) Title of 21. Executive Order 12898, Federal Actions is necessary for the proper performance to Address Environmental Justice and the information collection, including of the functions of the Department, Low-Income Populations former title if a change is being made; including whether the information will 22. Comprehensive Environmental Response (2) OMB control number; (3) summary have practical utility; (2) the accuracy of 23. Compensation and Liability Act of the information collection activity; (4) the Department’s estimate of the burden (CERCLA) of 1980 description of affected public; (5) 24. Resource Conservation and Recovery Act of the proposed information collection; estimate of total annual reporting and (RCRA) of 1976 (3) ways to enhance the quality, utility, recordkeeping burden; and (6) (Catalog of Federal Domestic Assistance and clarity of the information to be frequency of collection. PHMSA will Program Number 20.205, Highway Planning collected; and (4) ways to minimize the request a 3-year term of approval for and Construction. The regulations burden of the collection of information each information collection activity and implementing Executive Order 12372 on respondents, including the use of will publish a notice in the Federal regarding intergovernmental consultation on automated collection techniques or Federal programs and activities apply to this Register upon OMB’s approval. other forms of information technology. program.) PHMSA requests comments on the Docket: For access to the Dockets to Authority: 23 U.S.C. 139(l)(1). following information collections: read background documents or Title: Cargo Tank Specification Issued on: May 26, 2021. comments received, go to http:// Requirements. Rodney Whitfield, www.regulations.gov. OMB Control Number: 2137–0014. Director, Financial Services, Federal Highway FOR FURTHER INFORMATION CONTACT: Summary: This information collection Administration, California Division. Steven Andrews or Shelby Geller, consolidates and describes the [FR Doc. 2021–11535 Filed 6–1–21; 8:45 am] Standards and Rulemaking Division, information collection provisions in BILLING CODE 4910–RY–P (202) 366–8553, [email protected], parts 107, 178, and 180 of the HMR
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involving the manufacture, perform the functions in accordance the transportation of hazardous qualification, maintenance, and use of with the HMR. DOT uses the materials. all specification cargo tank motor registration statements to identify these (3) Manufacturers’ Data Reports, vehicles. It also includes the persons to ensure they possess the Certificates, and Related Papers: These information collection and knowledge and skills necessary to reports are prepared by cargo tank recordkeeping requirements for persons perform the required functions and that manufacturers and certifiers. They are who are engaged in the manufacture, they are performing the specified used by cargo tank owners, operators, assembly, requalification, and functions in accordance with the users, and DOT compliance personnel maintenance of DOT specification cargo applicable regulations. to verify that a cargo tank motor vehicle tank motor vehicles. The types of (2) Requalification and Maintenance was designed and constructed to meet information collected include: Reports: These reports are prepared by all requirements of the applicable (1) Registration Statements: Cargo persons who requalify or maintain cargo specification. tank manufacturers and repairers, as tanks. This information is used by cargo The following information collections well as cargo tank motor vehicle tank owners, operators and users, and and their burdens are associated with assemblers, are required to be registered DOT compliance personnel to verify this OMB Control Number. Please note with DOT and must furnish information that the cargo tanks are requalified, that these estimates may be rounded for relative to their qualifications to maintained, and in proper condition for readability:
Annual Total annual Time per Total annual Information collection respondents responses response burden hours
Registration—Cargo Tank Manufacturers ...... 24 24 20 minutes ...... 8 Registration—Repair Facilities ...... 33 33 20 minutes ...... 11 Registration—Design Certifying Engineers & Registered Inspectors ...... 1,110 1,110 20 minutes ...... 370 Registration—Recordkeeping ...... 117 117 15 minutes ...... 29 Updating a Cargo Tank Registration ...... 145 145 15 minutes ...... 36 Design Certificates for Prototypes ...... 55 55 2.5 hours ...... 138 Design Certificates for Prototypes—Recordkeeping ...... 7 7 15 minutes ...... 2 Manufacture’s Data Reports or Certificate and Related Papers ...... 145 6,960 30 minutes ...... 3,480 Manufacture’s Data Reports or Certificate and Related Papers—Record- 700 700 15 minutes...... 175 keeping. Completion of Manufacturer’s Data Report—New Cargo Tanks ...... 145 4,785 30 minutes ...... 2,393 Completion of Manufacturer’s Data Report—Remanufactured Cargo 145 1,015 30 minutes...... 508 Tanks. Completion of Manufacturer’s Data Report—Recordkeeping ...... 145 580 15 minutes ...... 145 Cargo Tank Repair/Modification Reports ...... 195 15,015 5 minutes ...... 1,251 Testing and Inspection of Cargo Tanks—Visual Inspections ...... 1,654 24,600 30 minutes ...... 12,300 Testing and Inspection of Cargo Tanks—External Visual Inspections ...... 1,654 123,000 30 minutes ...... 61,500
Affected Public: Manufacturers, Title: Container Certification an adequate level of safety for the assemblers, repairers, requalifiers, Statements. transport of explosives aboard vessel certifiers, and owners of cargo tanks. OMB Control Number: 2137–0582. and consistency with similar Annual Reporting and Recordkeeping Summary: Shippers of explosives, in requirements in international standards. Burden: freight containers or transport vehicles The following information collections by vessel, are required to certify on Number of Respondents: 6,274. and their burdens are associated with shipping documentation that the freight this OMB Control Number. Please note Total Annual Responses: 178,146. container or transport vehicle meets that these estimates may also be Total Annual Burden Hours: 82,346. minimal structural serviceability rounded for readability: Frequency of Collection: On occasion. requirements. This requirement ensures
Time per Information collection Annual Total annual response Total annual respondents responses (minutes) burden hours
Freight Container Packing Certification ...... 620 890,000 1 14,833 Class 1 (explosives) Container Structural Serviceability Statement ...... 30 4,500 1 75
Affected Public: Shippers of Issued in Washington, DC, on May 27, DEPARTMENT OF THE TREASURY explosives in freight containers or 2021, under authority delegated in 49 CFR transport vehicles by vessel. 1.97. Internal Revenue Service William A. Quade, Annual Reporting and Recordkeeping Proposed Collection; Comment Burden: Deputy Associate Administrator of Hazardous Materials Safety, Pipeline and Hazardous Request for Regulation Project Number of Respondents: 650. Materials Safety Administration. AGENCY: Internal Revenue Service (IRS), Total Annual Responses: 894,500. [FR Doc. 2021–11566 Filed 6–1–21; 8:45 am] Treasury. Total Annual Burden Hours: 14,908. BILLING CODE 4910–60–P ACTION: Notice and request for Frequency of Collection: On occasion. comments.
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SUMMARY: The Internal Revenue Service Estimated Total Annual Burden DATES: Written comments should be (IRS), as part of its continuing effort to Hours: 301,018. received on or before August 2, 2021 to reduce paperwork and respondent The following paragraph applies to all be assured of consideration. burden, invites the general public and of the collections of information covered ADDRESSES: Direct all written comments other Federal agencies to take this by this notice: to Kinna Brewington, Internal Revenue opportunity to comment on information An agency may not conduct or Service, Room 6526, 1111 Constitution collections, as required by the sponsor, and a person is not required to Avenue NW, Washington, DC 20224. respond to, a collection of information Paperwork Reduction Act of 1995. The FOR FURTHER INFORMATION CONTACT: unless the collection of information IRS is soliciting comments concerning Requests for additional information or displays a valid OMB control number. application procedures for qualified copies of the form and instructions Books or records relating to a collection intermediary status under final qualified should be directed to Martha R. Brinson, of information must be retained as long intermediary withholding agreement. at (202) 317–5753, or at Internal as their contents may become material DATES: Written comments should be Revenue Service, Room 6526, 1111 in the administration of any internal received on or before August 2, 2021 to Constitution Avenue NW, Washington, revenue law. Generally, tax returns and be assured of consideration. DC 20224, or through the internet at tax return information are confidential, ADDRESSES: Direct all written comments [email protected]. to Kinna Brewington, Internal Revenue as required by 26 U.S.C. 6103. Request for Comments: Comments SUPPLEMENTARY INFORMATION: Service, Room 6526, 1111 Constitution Title: Simplified Employee Pension- Avenue NW, Washington, DC 20224. submitted in response to this notice will be summarized and/or included in the Individual Retirement Accounts FOR FURTHER INFORMATION CONTACT: Contribution Agreement. Requests for additional information or request for OMB approval. Comments will be of public record. Comments are OMB Number: 1545–0499. copies of this form should be directed Form Number: 5305–SEP. to Martha R. Brinson, at (202) 317–5753, invited on: (a) Whether the collection of information is necessary for the proper Abstract: Form 5305–SEP is used by or at Internal Revenue Service, Room an employer to make an agreement to 6526, 1111 Constitution Avenue NW, performance of the functions of the agency, including whether the provide benefits to all employees under Washington, DC 20224, or through the a Simplified Employee Pension (SEP) internet at [email protected]. information has practical utility; (b) the accuracy of the agency’s estimate of the described in Internal Revenue Code SUPPLEMENTARY INFORMATION: section 408(k). This form is not to be Title: Application Procedures for burden of the collection of information; (c) ways to enhance the quality, utility, filed with the IRS but is to be retained Qualified Intermediary Status Under in the employer’s records as proof of Section 1441; Final Qualified and clarity of the information to be collected; (d) ways to minimize the establishing a SEP and justifying a Intermediary Withholding Agreement. deduction for contributions to the SEP. OMB Number: 1545–1597. burden of the collection of information on or other forms of information Current Actions: There are no changes Revenue Procedure Number: 2000–12 being made to the form at this time. (Revenue Procedure 2000–12 is technology; and (e) estimates of capital or start-up costs and costs of operation, Type of Review: Extension of a modified by Announcement 2000–50, currently approved collection. Revenue Procedure 2003–64, Revenue maintenance, and purchase of services to provide information. Affected Public: Business or other for- Procedure 2004–21, and Revenue profit organizations. Procedure 2005–77.) Approved: May 26, 2021. Estimated Number of Respondents: Abstract: This revenue procedure Martha R. Brinson, 100,000. gives guidance for entering into a Tax Analyst. Estimated Time per Respondent: 4hr., withholding agreement with the IRS to 57 mins. be treated as a Qualified Intermediary [FR Doc. 2021–11511 Filed 6–1–21; 8:45 am] Estimated Total Annual Burden (QI) under regulation section 1.1441– BILLING CODE 4830–01–P Hours: 495,000. 1(e)(5). It describes the application The following paragraph applies to all procedures for becoming a QI and the DEPARTMENT OF THE TREASURY of the collections of information covered terms that the IRS will ordinarily by this notice: require in a QI withholding agreement. Internal Revenue Service An agency may not conduct or The objective of a QI withholding sponsor, and a person is not required to agreement is to simplify withholding Proposed Collection; Comment respond to, a collection of information and reporting obligations with respect to Request for Form 5305–SEP unless the collection of information payments of income made to an account displays a valid OMB control number. holder through one or more foreign AGENCY: Internal Revenue Service (IRS), Books or records relating to a intermediaries. Treasury. collection of information must be Current Actions: There are no changes ACTION: Notice and request for retained as long as their contents may to the paperwork burden previously comments. become material in the administration approved by OMB. Type of Review: Extension of a SUMMARY: The Internal Revenue Service of any internal revenue law. Generally, currently approved collection. (IRS), as part of its continuing effort to tax returns and tax return information Affected Public: Business or other for- reduce paperwork and respondent are confidential, as required by 26 profit organizations. burden, invites the general public and U.S.C. 6103. Estimated Number of Respondents: other Federal agencies to take this Request for Comments: Comments 88,504. opportunity to comment on information submitted in response to this notice will Estimated Number of Responses: collections, as required by the be summarized and/or included in the 1,097,991. Paperwork Reduction Act of 1995. The request for OMB approval. Comments Estimated Time per Respondent: 16 IRS is soliciting comments concerning will be of public record. Comments are minutes. Simplified Employee Pension- invited on: (a) Whether the collection of ** Estimated Time for a QI: 2,093 Individual Retirement Accounts information is necessary for the proper hours. Contribution Agreement. performance of the functions of the
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agency, including whether the Description: Form SLT is part of the foreign securities and four types of U.S. information has practical utility; (b) the Treasury International Capital (TIC) securities, where for each type of U.S. accuracy of the agency’s estimate of the reporting system, which is required by security there is a column for foreign- burden of the collection of information; law (22 U.S.C. 286f; 22 U.S.C. 3103; E.O. official-held and a separate column for (c) ways to enhance the quality, utility, 10033; 31 CFR 128), and is designed to other-foreign-held. (3) To accomplish and clarity of the information to be collect timely information on the aims in (1) above, both the Form collected; (d) ways to minimize the international portfolio capital SLT and the instructions are expanded burden of the collection of information movements. Form SLT is a monthly to add the collection of data on the total on or other forms of information report on cross-border portfolio change in the fair (market) value over technology; and (e) estimates of capital investment in long-term marketable the month for all securities held at the or start-up costs and costs of operation, securities by U.S. and foreign residents. end of the month for each type of long- maintenance, and purchase of services This information is used by the U.S. term security. In the Form SLT, one to provide information. Government in the formulation of column is added for each of the 11 Approved: May 26, 2021. international financial and monetary columns of holdings mentioned in (2) Martha R. Brinson, policies and for the preparation of the above; in the instructions, sections II.F.4 U.S. balance of payments accounts and Tax Analyst. and III.G are added. (4) To accomplish the U.S. international investment the aims in (1) above, both the Form [FR Doc. 2021–11509 Filed 6–1–21; 8:45 am] position. SLT and the instructions are expanded BILLING CODE 4830–01–P Current Actions: (1) Justification: One to add the collection of data on U.S. important aim of this revision of the purchases and U.S. sales of long-term DEPARTMENT OF THE TREASURY SLT data collection is to create, for the securities by U.S.-residents with first time, a data collection of ‘‘changes foreign-residents; in the Form SLT, two Agency Information Collection in fair value’’ for the TIC securities data. columns are added for each of the 11 Activities; Submission for OMB Users of TIC data often compare the columns of holdings mentioned in (2) Review; Comment Request; Treasury change in the holdings of long-term above; in the instructions, sections International Capital securities reported on the Form SLT, II.F.3, II.F.5, III.E and III.F are added. (5) with the net purchases (purchases less Note that while purchases and sales in AGENCY: Departmental Offices, U.S. sales) of long-term securities reported the revised SLT data collection appear Department of the Treasury. on the Form S. There is general to be generally the same as in the Form ACTION: Notice. agreement that the difference between S data collection, there are three the change in holding and the net important differences: (i) Purchases and SUMMARY: The Department of the purchases is due largely to the change sales in the Form SLT are reported by Treasury will submit the following in fair value of the securities, with less the custodian or issuer or end-investor information collection requests to the important factors making up the that is also reporting the holdings, while Office of Management and Budget remainder of the difference. In in the Form S purchases and sales are (OMB) for review and clearance in mathematical terms, ‘‘Change in reported by a trader (e.g., broker-dealer, accordance with the Paperwork holdings’’ equals ‘‘purchases less sales’’ prime broker, principal trading firm); Reduction Act of 1995, on or after the plus ‘‘change in fair value’’ plus ‘‘other (ii) the Form SLT data are recorded from date of publication of this notice. The factors’’. Different assessments between the U.S. point of view, while the Form public is invited to submit comments on TIC data users often arise because each S data are recorded from the foreign this request. one has to create their own estimates of point-of-view (e.g., Form SLT DATES: Comments must be received on the ‘‘change in fair value’’ despite ‘‘purchases’’ are made by U.S. residents or before July 2, 2021. lacking detailed information on the from foreign-residents, whereas Form S ADDRESSES: Written comments and holdings of, and transactions in, the ‘‘purchases’’ are made by foreign- recommendations for the proposed many securities in the TIC system. residents from U.S.-residents); and (iii) information collection should be sent Another aim of this revision of the SLT purchases and sales of foreign securities within 30 days of publication of this data collection is to obtain the three in Form SLT are recorded opposite the notice to www.reginfo.gov/public/do/ main data types (holdings, purchases foreign country that issued the security, PRAMain. Find this particular and sales, and change in fair value) from whereas the Form S data are recorded information collection by selecting the same source. The result should opposite the country that purchased or ‘‘Currently under 30-day Review—Open greatly improve the connections sold the security. The Form SLT data for Public Comments’’ or by using the between the holdings data and the are much more informative about U.S. search function. purchases and sales data and the claims on individual foreign countries. FOR FURTHER INFORMATION CONTACT: ‘‘change in fair value’’ data. Lastly, (6) The revised Form SLT no longer has Copies of the submissions may be while there is an increase in the Parts A and B, where previously a obtained from Molly Stasko by emailing reporting burden on custodians from the custodian reported data in part A and an [email protected], calling (202) 622– revision of the SLT, after 2022 it is issuer and/or end-investor reported data 8922, or viewing the entire information expected that this increase in burden in part B. In the revised Form SLT the collection request at www.reginfo.gov. will be significantly offset by the reporting firm must check one or both SUPPLEMENTARY INFORMATION: decrease in burden when the Form S is of the two boxes in the top-center Title: Treasury International Capital discontinued. (2) No changes are made section of the cover page to specify Form SLT, ‘‘Aggregate Holdings, in the collection of holdings data; i.e., whether the data is from a custodian or Purchases and Sales, and Fair Value no changes are made in the columns from an issuer and/or end- investor or Changes of Long-Term Securities by and rows of the Form SLT or in the from both; see II.A in the instructions. U.S. and Foreign Residents.’’ instructions regarding the holdings of So a firm that reports data for both a OMB Control Number: 1505–0235. long-term securities. In both the current custodian and an issuer/end-user can Type of Review: Revision of a and revised Form SLT there are eleven combine both types of data into one currently approved collection. such columns covering three types of report, and no longer needs to report
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them separately in part A and part B. (7) UNIFIED CARRIER REGISTRATION V. Report of the Federal Motor Carrier To allow time for respondents to revise PLAN Safety Administration (FMCSA)— their reporting systems, the revised form FMCSA Representative Sunshine Act Meetings Notice; Unified and instructions are scheduled to The FMCSA will provide a report on Carrier Registration Plan Board of become effective for reports as of any relevant activity. November 2022. (8) Until the revised Directors Meeting form becomes effective in 2022, the VI. Updates Concerning UCR TIME AND DATE: June 8, 2021, from 12:00 Legislation—UCR Board Chair currently-approved Form SLT and p.m. to 3:00 p.m., Eastern time. instructions will continue to be in The UCR Board Chair will call for any PLACE: This meeting will be accessible effect. (9) The name of the revised Form updates regarding UCR legislation since via conference call and screensharing. SLT on the cover page and elsewhere is the last Board meeting. Any interested person may call 877– expanded to ‘‘Aggregate Holdings, 853–5247 (U.S. toll free), 888–788–0099 VII. Chief Legal Officer Report—UCR Purchases and Sales, and Fair Value (U.S. toll free), +1 929–205–6099 (U.S. Chief Legal Officer Changes of Long-Term Securities by toll), or +1 669–900–6833 (U.S. toll), The UCR Chief Legal Officer will U.S. and Foreign Residents.’’ Added on Conference ID 945 5272 6109, to provide an update on the status of the the cover page under the name, is the participate in the meeting. The website March 2019 data event. phrase ‘‘Effective for reports beginning to participate via Zoom meeting and VIII. New Master Services Agreement as of November 2022’’. (10) After the screenshare is https://kellen.zoom.us/j/ Between the UCR Plan and Seikosoft— revised Form SLT becomes effective in 94552726109. November 2022, there will be a UCR Board Chair, UCR Chief Legal STATUS: This meeting will be open to the Officer, and UCR Executive Director duplication of the Purchase and Sales public. data with the Form S for roughly three For Discussion and Possible Action MATTERS TO BE CONSIDERED: The Unified months. This period of overlap for Carrier Registration Plan Board of The UCR Board Chair, the UCR Chief comparison of the two sources of data Directors (the ‘‘Board’’) will continue its Legal Officer, and the UCR Executive will allow the agencies to make any work in developing and implementing Director will lead a discussion on a new necessary adjustments to the revised the Unified Carrier Registration Plan proposed Master Services Agreement Form SLT and/or instructions. After the and Agreement. The subject matter of between the UCR Plan and Seikosoft as overlap period ends, and if the the meeting will include: the current Master Services Agreement purchases and sales data from the expires on September 30, 2021. The revised Form SLT are acceptable, then Agenda Board may decide to adopt a new the Form S will be discontinued. (11) I. Welcome and Call to Order—UCR Master Services Agreement between the Some other clarifications and format Board Chair UCR Plan and Seikosoft containing changes may be made to improve the The UCR Board Chair will welcome additional developer assistance instructions. attendees, call the meeting to order, call beginning June 15, 2021. Form: Treasury Form SLT. roll for the Board, confirm the presence IX. Discussion of the Final Report Affected Public: Businesses or other of a quorum, and facilitate self- Received From the UCR Plan’s External for-profit organizations. introductions. Auditor Regarding the Audited Statements of Cash Receipts and Estimated Number of Respondents: II. Verification of Meeting Notice—UCR Executive Director Disbursements of the Depository for the 438. Calendar Years Ended December 31, Frequency of Response: Monthly. The UCR Executive Director will 2019 and December 31, 2018—UCR verify publication of the meeting notice Estimated Total Number of Annual Chief Legal Officer and UCR Executive on the UCR website and distribution to Director Responses: 5,256. the UCR contact list via email followed The UCR Chief Legal Officer and the Estimated Time per Response: by subsequent publication of the notice UCR Executive Director will lead a Average 11.7 hours per respondent per in the Federal Register. filing. The estimated average burden per discussion of the Final Audit Report of III. Review and Approval of Board Audited Statements of Cash Receipts respondent varies, from about 21.6 Agenda—UCR Board Chair and Disbursements of the Depository for hours per filing for a U.S.-resident Calendar Years Ended December 31, For Discussion and Possible Action custodian to about 9.3 hours for a U.S.- 2019 and December 31, 2018 from our resident issuer or U.S.-resident end- The proposed Agenda will be external auditor, Williams Benator and investor. reviewed, and the Board will consider Libby, LLP, including a material Estimated Total Annual Burden adoption. weakness identified in a letter dated Hours: 61,722 hours. Ground Rules May 12, 2021. (Authority: 44 U.S.C. 3501 et seq.) ➢ Board actions taken only in X. Subcommittee Reports Dated: May 27, 2021. designated areas on agenda Audit Subcommittee—UCR Audit Molly Stasko, IV. Approval of Minutes of the April 22, Subcommittee Chair Treasury PRA Clearance Officer. 2021 UCR Board Meeting—UCR Board A. 2021 Inspection Audits—UCR Audit [FR Doc. 2021–11599 Filed 6–1–21; 8:45 am] Chair Subcommittee Vice-Chair BILLING CODE 4810–AK–P For Discussion and Possible Action For Discussion and Possible Action Draft Minutes of the April 22, 2021 The Audit Subcommittee Vice-Chair UCR Board meeting will be reviewed. will lead a discussion regarding The Board will consider action to possibly requiring participating states to approve. audit 100% of the motor carriers
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identified through roadside inspection. Finance Subcommittee—UCR Finance XII. Other Business—UCR Board Chair The Board may take action to require Subcommittee Chair The UCR Board Chair will call for any participating states to audit all • UCR Registration Fee other items Board members would like unregistered motor carriers identified Recommendation for 2023—Calculation to discuss. through roadside enforcement. The UCR Methodology—UCR Finance XIII. Adjournment—UCR Board Chair Audit Subcommittee recommends that Subcommittee Chair and UCR the Board adopt this action. Depository Manager The UCR Board Chair will adjourn the meeting. B. Review the Current Focused For Discussion and Possible Action This agenda will be available no later Anomaly Reviews (FARs) Audits The UCR Finance Subcommittee than 5:00 p.m. Eastern time, May 28, Assigned to the States—UCR Audit Chair and the UCR Depository Manager 2021 at: https://plan.ucr.gov. Subcommittee Vice-Chair will lead a discussion regarding the CONTACT PERSON FOR MORE INFORMATION: For Discussion and Possible Action merits of using an ‘‘average collections’’ Elizabeth Leaman, Chair, Unified method for estimating the remaining Carrier Registration Plan Board of The UCR Audit Subcommittee Vice- fees collected before the end of the 2021 Directors, (617) 305–3783, eleaman@ Chair will lead a discussion regarding registration year on September 30, 2022 board.ucr.gov. the current number of FARs assigned to versus the ‘‘minimum collections’’ Alex B. Leath, the states and consider options to method used for estimating fee collections over the same period. The Chief Legal Officer, Unified Carrier increase the number of FARs assigned. Registration Plan. The Board may take action to increase Board may take action to select the most [FR Doc. 2021–11655 Filed 5–28–21; 4:15 pm] the number of FARs required to be appropriate method to use. The UCR BILLING CODE 4910–YL–P processed annually by each Finance Subcommittee recommends participating state. The UCR Audit that the Board adopt the ‘‘average collections’’ method for calculating and Subcommittee recommends that the DEPARTMENT OF VETERANS Board adopt this action. recommending the UCR registration fee to the U.S. Department of AFFAIRS C. Definition of Commercial Motor Transportation Secretary and FMCSA Veterans and Community Oversight Vehicle for UCR Purposes—UCR Audit for the 2023 UCR registration year. and Engagement Board, Notice of Subcommittee Chair and UCR Executive Education and Training Meeting Director Subcommittee—UCR Education and The Department of Veterans Affairs For Discussion and Possible Action Training Subcommittee Chair (VA) gives notice under the Federal • The UCR Audit Subcommittee Chair Update on Basic Audit Training Advisory Committee Act (FACA), 5 and the UCR Executive Director will Module and Flow Chart/Decision Tree— U.S.C. App. 2, that the Veterans and UCR Education and Training provide proposed modifications to the Community Oversight and Engagement Subcommittee Chair definition of a ‘‘Commercial Motor Board will meet virtually on June 29, Vehicle’’ for UCR purposes. The The UCR Education and Training 2021. The meeting will begin and end as follows: proposed changes are intended to Subcommittee Chair will provide an update on the development of the Basic include clarifying language while Date Time retaining the definition of Commercial Audit Training Module and Flow Chart/ Motor Vehicle as set forth by reference Decision Tree and other possible June 29, 2021 ...... 3:00 p.m. to 6:00 p.m. EST. training modules going forward. to the UCR Act (49 U.S. Code 31101.) The meetings are open to the public The Board may take action to adopt the XI. Contractor Reports—UCR Executive and will be recorded. Members of the proposed modifications for inclusion in Director public can attend the meeting by the UCR Handbook. The UCR Audit • UCR Executive Director’s Report registering at the link below: https:// Subcommittee recommends that the veteransaffairs.webex.com/veterans The UCR Executive Director will Board adopt the proposed modifications affairs/onstage/g.php?MTID=e4773 provide a report covering recent activity to this definition. 8a7af470cfd8abf11982d6705057. for the UCR Plan. The Board was established by the D. State UCR Audit Reports for • DSL Transportation Services, Inc. West Los Angeles Leasing Act of 2016 Registration Year 2020—UCR Audit on September 29, 2016. The purpose of Subcommittee Chair DSL Transportation Services, Inc. will report on the latest data from the FARs the Board is to provide advice and make The UCR Audit Subcommittee Chair program, discuss motor carrier recommendations to the Secretary of will lead a discussion regarding the inspection results, and other matters. Veterans Affairs on: Identifying the states’ obligations to complete audit goals of the community and Veteran • Seikosoft reports for registration year 2020 and partnership; improving services and outcomes for Veterans, members of the discuss the preliminary status of audit Seikosoft will provide an update on Armed Forces, and the families of such reports for registration year 2020 that recent/new activity related to the Veterans and members; and on the were due on June 1, 2021. National Registration System. • implementation of the Draft Master Plan UCR Administrator Report (Kellen)— approved by the Secretary on January UCR Operations and Depository 28, 2016, and on the creation and Manager implementation of any successor master The UCR Staff will provide a plans. management report covering recent On June 29, the agenda will include activity for the Depository, Operations, opening remarks from the Committee and Communications. Chair, Executive Sponsor, and other VA
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officials. There will be a general update subcommittee, will report on activities asked to identify themselves by first from Veterans Administration Greater since the last meeting, followed by an name, last name, email address, Los Angeles Healthcare System out brief to the full Board on any draft affiliation (if any) and interest in making (VAGLAHS) on a revised Draft Master recommendations considered for a public comment. Please select Plan timeline based upon engineering forwarding to the SECVA. ‘‘Submit’’ to finish registration. You will challenges, the proposed plan to work A public comment session will occur receive a confirmation email from with State/County/City considering from 5:05 p.m. to 5:55 p.m. Individuals WEBEX shortly after registration. The recent rebalance of State budget, the wishing to make public comments are confirmation email will include a target timeframe to house next required to register during the WEBEX calendar event invitation and compliment of Veterans as a result of registration process. In the interest of instructions to join the meeting via web executing the Draft Master Plan, and the time management, speakers will be held browser or telephone. Attempts to join strategy moving forward regarding to a 5-minute time limit and selected in the meeting will not work until the host encampment of Veterans located outside the order of event registration. If time opens the meeting approximately ten the campus gates. The San Francisco VA expires and your name was not selected, minutes prior to start time. Health Care System will provide a or you did not register to provide public Any member of the public seeking presentation on a model of care and comment and would like to do so, you additional information should contact programs to serve medically and are asked to submit public comments Mr. Eugene W. Skinner, Jr. at (202) 631– behaviorally complex homeless via email at [email protected] for 7645 or at [email protected]. veterans, and the Hope of the Valley inclusion in the official meeting record. Rescue Mission will provide an To attend the meeting, use the Dated: May 27, 2021. overview of its Tiny Home initiative. registration instructions—Registration Jelessa M. Burney, The Board’s Master Plan with Services Instructions: Select the ‘‘Register’’ Federal Advisory Committee Management and Outcomes subcommittee and hyperlink in event status or the Officer. Outreach and Community Engagement ‘‘Register’’ button located bottom center [FR Doc. 2021–11568 Filed 6–1–21; 8:45 am] with Services and Outcomes of the page. Attendees will then be BILLING CODE P
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Vol. 86 Wednesday, No. 104 June 2, 2021
Part II
Securities and Exchange Commission
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing of Proposed Rule Change To Adopt Rules Governing the Trading of Equity Securities on the Exchange Through a Facility of the Exchange Known as Boston Security Token Exchange LLC; Notice
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SECURITIES AND EXCHANGE proposed rule change, such as the under the proposed rules. The COMMISSION application to become a BSTX ‘‘Securities’’ 5 under the proposed rules Participant, have been submitted with would be equity securities that meet [Release No. 34–92017; File No. SR–BOX– 2021–06] the proposal as Exhibits 3A through 3L. BSTX listing standards and that trade on In addition, the Exchange proposes to the BSTX System. The Exchange would Self-Regulatory Organizations; BOX make certain amendments to several operate the BSTX Market Data Exchange LLC; Notice of Filing of existing BOX Rules to facilitate trading Blockchain, which would record certain Proposed Rule Change To Adopt Rules on BSTX. The proposed changes to the information regarding orders and Governing the Trading of Equity existing BOX Rules would not change transactions occurring on BSTX with Securities on the Exchange Through a the core purpose of the subject Rules or respect to Securities. All BOX Facility of the Exchange Known as the functionality of other BOX trading Participants would be eligible to Boston Security Token Exchange LLC systems and facilities. Specifically, the participate in BSTX provided that they Exchange is seeking to amend BOX become a BSTX Participant pursuant to May 25, 2021. Rules 100, 2020, 2060, 3180, 7130, 7150, the proposed rules. Under the proposed Pursuant to Section 19(b)(1) of the 7230, 7245, IM–8050–3, 11010, 11030 rules, BSTX would serve as the listing Securities Exchange Act of 1934 and 12140. These proposed changes are market for eligible companies and (‘‘Act’’),1 and Rule 19b–4 thereunder,2 set forth in Exhibit 5B. Material issuers of exchange traded products notice is hereby given that on May 12, proposed to be added to the Rule as (‘‘ETPs’’) that wish to issue their 2021, BOX Exchange LLC (the currently in effect is underlined and registered securities as Securities. ‘‘Exchange’’) filed with the Securities material proposed to be deleted is Securities would trade as NMS stock.6 and Exchange Commission bracketed. The Exchange is not proposing rules (‘‘Commission’’) the proposed rule All capitalized terms not defined that would support its extension of change as described in Items I and II herein have the same meaning as set unlisted trading privileges (‘‘UTP’’) to below, which Items have been prepared forth in the Exchange’s Rules.4 other NMS stock, and accordingly the by the self-regulatory organization. The The text of the proposed rule change Exchange does not intend to extend any Commission is publishing this notice to is available from the principal office of such UTP in connection with this solicit comments on the proposed rule the Exchange, at the Commission’s proposal. The Exchange would therefore from interested persons. Public Reference Room and also on the only trade Securities listed on BSTX Exchange’s internet website at http:// unless and until it proposes and I. Self-Regulatory Organization’s boxoptions.com. Statement of the Terms of Substance of receives Commission approval for rules the Proposed Rule Change II. Self-Regulatory Organization’s that would support trading in other Statement of the Purpose of, and types of securities, including through Pursuant to the provisions of Section any extension of UTP to other NMS 19(b)(1) of the Securities Exchange Act Statutory Basis for, the Proposed Rule 3 Change stock. A guide to the structure of the of 1934 as amended (‘‘Exchange Act’’), proposed rule change is described In its filing with the Commission, the BOX Exchange LLC (‘‘BOX’’ or the immediately below. ‘‘Exchange’’) is filing with the Securities self-regulatory organization included and Exchange Commission (‘‘SEC’’ or statements concerning the purpose of, Guide to the Scope of the Proposed Rule ‘‘Commission’’) a proposed rule change and basis for, the proposed rule change Change to adopt rules to govern the trading of and discussed any comments it received The proposal for trading of Securities equity securities on the Exchange on the proposed rule change. The text through BSTX generally involves through a facility of the Exchange of these statements may be examined at changes to existing BOX Rules and new known as Boston Security Token the places specified in Item IV below. BOX Rules pertaining specifically to Exchange LLC (‘‘BSTX’’). As described The self-regulatory organization has BSTX (‘‘BSTX Rules’’). In addition, the more fully below, BSTX would operate prepared summaries, set forth in Exchange plans to submit a separate a fully automated, price/time priority Sections A, B, and C below, of the most proposed rule change pertaining to execution system for the trading of significant aspects of such statements. BSTX’s corporate governance ‘‘Securities,’’ which would be equity A. Self-Regulatory Organization’s documents. To support the trading of securities that meet BSTX listing Statement of the Purpose of, and Securities through BSTX, certain standards and for which certain Statutory Basis for, the Proposed Rule conforming changes are proposed to information regarding orders and Change existing BOX Rules and entirely new executions on BSTX would be recorded BSTX Rules are also proposed as Rule and disseminated on a proprietary 1. Purpose Series 17000 through 29000.7 Each of market data feed that BSTX operates The Exchange is proposing to adopt a those new Rule Series and the using a proprietary blockchain system series of rules to govern the trading of provisions thereunder are described in (‘‘BSTX Market Data Blockchain’’). The certain equity securities through a greater detail below. Where the BSTX proposed additions to the Exchange’s facility of the Exchange known as BSTX Rules are based on existing rules of Rules setting forth new Rule Series and make certain amendments to the another national securities exchange, 17000–29000 have been submitted with existing BOX rules to facilitate trading the source rule from the relevant the proposal as Exhibit 5A. All text set on BSTX. As described more fully exchange is noted along with a forth in Exhibit 5A would be added to below, BSTX would operate a fully the Exchange’s rules and therefore automated, price/time priority 5 As discussed further below, BSTX proposes to underlining of the text is omitted to execution system (‘‘BSTX System’’) for use the term ‘‘Security’’ to refer to BSTX-listed improve readability. Forms proposed to securities to distinguish them from other securities the trading of certain equity securities issued by an issuer that the issuer does not list on be used in connection with the that would be considered ‘‘Securities’’ BSTX. 6 17 CFR 242.600(b)(48). 1 15 U.S.C. 78s(b)(1). 4 The Exchange’s Rules can be found on the 7 The proposed changes to BOX Rules and the 2 17 CFR 240.19b–4. Exchange’s public website: https://boxoptions.com/ proposed BSTX Rules have been submitted with 3 15 U.S.C. 78s(b)(1). regulatory/rulebook-filings/. this proposal as Exhibits 5B and 5A, respectively.
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discussion of notable differences proposed rule change that the Exchange ....’’14 The Exchange plans to join between the source rule and the will submit to the Commission. existing transaction reporting plans, as proposed BSTX Rule. The proposed discussed in Part VIII below, for the BSTX Would Be a Facility of BOX That BSTX Rules are addressed in Part III purposes of Security quotation and Would Support Trading in the New 15 below and they generally cover the Asset Class of Securities for BOX transaction reporting. The term ‘‘NMS following areas: stock’’ means ‘‘any NMS security other • Section 17000—General Provisions BSTX would operate as a facility 9 of than an option’’ 16 and therefore of BSTX; BOX, which is a national securities Securities traded on BSTX would be • Section 18000—Participation on exchange registered with the SEC. As a classified as NMS stock. BSTX; facility of BOX, BSTX’s operations Securities would meet the definition • Section 19000—Business Conduct would be subject to applicable of NMS stock and would trade, clear, for BSTX Participants; requirements in Sections 6 and 19 of the and settle in the same manner as all • Section 20000—Financial and Exchange Act, among other applicable other NMS stocks traded today. As rules and regulations.10 Currently, BOX Operational Rules for BSTX described in further detail below, the functions as an exchange only for Participants; operation of the BSTX Market Data standardized options. At the time that • Section 21000—Supervision; Blockchain would in no way modify or • BSTX commences operations it would alter market participants’ obligations Section 22000—Miscellaneous support trading in Securities that are Provisions; under Regulation NMS. • equity securities (including certain Section 23000—Trading Practice ETPs), as descried in more detail below. BSTX Would Support Trading of Rules; Accordingly, the proposal represents a Registered Securities • Section 24000—Discipline and new asset class for BOX, and the All Securities traded on BSTX would Summary Suspension; discussion below sets forth the changes • generally be required to be registered Section 25000—Trading Rules; and additions to the Exchange’s Rules to • with the Commission under both Section 25200—Market Making on support the trading of equity securities Section 12 of the Exchange Act 17 and BSTX; as Securities on BSTX. • Section 6 of the Securities Act of 1933 Section 26000—BSTX Listing Rules The Exchange proposes to use the (‘‘Securities Act’’).18 BSTX would not Other Than for Exchange Traded term ‘‘Security’’ 11 to describe a NMS support trading of Securities offered Products; stock trading on the BSTX system. The under an exemption from registration • Section 27000—Suspension and legal significance, therefore, of a for public offerings, with the exception Delisting; ‘‘Security’’ is that it would be an equity of certain offerings under Regulation A • Section 27100—Guide to Filing security that is approved for listing on that meet the proposed BSTX listing Requirements; BSTX and that trades on the BSTX standards. • Section 27200—Procedures for System. A security that is offered by an Review of Exchange Listing issuer with the intent of it becoming Issuance and Clearance and Settlement Determinations; and listed on BSTX would therefore not of Securities • Section 28000—Trading and Listing become a ‘‘Security’’ under the BSTX would maintain certain rules, of Exchange Traded Products; proposed BSTX Rules unless and until as described below, to address custody, • Section 29000—Dues, Fees, it actually does become listed on BSTX clearance and settlement in connection Assessments and Other Charges. and trades on the BSTX System.12 with Securities. All transactions in Securities would clear and settle in Overview of BSTX and Considerations Securities Would Be NMS Stocks accordance with the rules, policies and Related to the Listing, Trading and The Securities would qualify as NMS procedures of registered clearing Clearance and Settlement of Securities 13 stocks pursuant to Regulation NMS, agencies. Specifically, BSTX anticipates The Joint Venture and Ownership of which defines the term ‘‘NMS security’’ that at the time it commences in relevant part to mean ‘‘any security BSTX operations, Securities that are listed and or class of securities for which traded on BSTX would be securities that On June 19, 2018, t0.com Inc. transaction reports are collected, have been made eligible for services by (‘‘tZERO’’) and BOX Digital Markets processed and made available pursuant The Depository Trust Company (‘‘DTC’’) LLC (‘‘BOX Digital’’) announced a joint to an effective transaction reporting plan venture to facilitate the trading of and that DTC would serve as the 19 8 securities depository for such Securities on the Exchange. As part of 9 15 U.S.C. 78c(a)(2). Section 3(a)(2) of the the joint venture, BOX Digital, which is Exchange Act, provides that ‘‘the term ‘facility’ 14 a subsidiary of BOX Holdings Group when used with respect to an exchange includes its 17 CFR 242.600(b)(47). premises, tangible or intangible property whether 15 17 CFR 242.601(a)(1). The Rule states in LLC, and tZERO each own 50% of the on the premises or not, any right to the use of such relevant part that ‘‘every national securities voting class of equity and over 45% premises or property or any service thereof for the exchange shall file [with the SEC] a transaction economic interest of BSTX LLC. purpose of effecting or reporting a transaction on an reporting plan regarding transactions in listed Pursuant to the BSTX LLC Agreement, exchange (including, among other things, any equity and Nasdaq securities executed through its system of communication to or from the exchange, facilities . . . .’’ BOX Digital and tZERO will perform by ticker or otherwise, maintained by or with the 16 17 CFR 242.600(b)(47). certain specified functions with respect consent of the exchange), and any right of the 17 15 U.S.C. 78l. to the operation of BSTX. As noted, exchange to the use of any property or service.’’ 18 15 U.S.C. 77f. Because BSTX will share certain systems of the these details, as well as the proposed 19 15 U.S.C. 78c(a)(23)(A). Section 3(a)(23)(A) of Exchange, BSTX would be a facility of the the Exchange Act defines the term ‘‘clearing governance structure of the joint venture Exchange. agency’’ to include ‘‘any person, such as a securities will be the subject of a separate 10 15 U.S.C. 78f; 15 U.S.C. 78s. depository, who (i) acts as a custodian of securities 11 The Exchange proposes to define the term in connection with a system for the handling of 8 See tZERO and BOX Digital Markets Sign Deal ‘‘Security’’ to mean a NMS stock, as defined in Rule securities whereby all securities of a particular class to Create Joint Venture, Business Wire (June 19, 600(b)(47) of the Exchange Act, trading on the or series of any issuer deposited within the system 2018), https://www.businesswire.com/news/home/ BSTX System. See proposed Rule 17000(a)(31). are treated as fungible and may be transferred, 20180619005897/en/tZERO-and-BOX-Digital- 12 Id. loaned, or pledged by bookkeeping entry without Markets-Sign-Deal-to-Create-Joint-Venture. 13 17 CFR 242.600 through .613. Continued
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Securities. It is also expected that BSTX would be conducted in the same name’’ with DTC.21 BSTX Rule 26137 confirmed trades in Securities on BSTX general manner in which offerings of would require that for an issuer’s would be transmitted to National exchange-listed equity securities are security to be eligible to be a Security, Securities Clearing Corporation conducted today under the federal BSTX must have received a (‘‘NSCC’’) for clearing such that NSCC securities laws. An issuer will enter into representation from the issuer that a would clear the trades through its a firm commitment or best efforts CUSIP number that identifies the systems to produce settlement underwriting agreement with a sole security is included in a file of eligible obligations that would be due for underwriter or underwriting syndicate; issues maintained by a securities settlement between participants at DTC. the underwriter(s) will market the depository that is registered with the BSTX believes that this custody, securities and distribute them to SEC as a clearing agency. This is based clearance and settlement structure is the purchasers; and secondary trading in on rules that are currently maintained same general structure that exists today the securities (that are intended to trade by other equities exchanges.22 In for other exchange-traded equity on BSTX as Securities) will thereafter practice, BSTX Rule 26137 requires the securities. Importantly, for purposes of commence on BSTX. Security to have a CUSIP number that Issuers on BSTX could include both NSCC’s clearing activities and DTC’s is included in a file of eligible securities settlement activities in respect of the (1) new issuers who do not currently that is maintained by DTC because the Securities, the relevant Securities would have any class of securities registered on Exchange believes that DTC currently is be cleared and settled by NSCC and a national securities exchange, and (2) the only clearing agency registered with DTC in exactly the same manner as issuers who currently have securities registered on a national securities the SEC that provides securities those activities are performed by NSCC 23 and DTC currently regarding a class of exchange and who are seeking depository services. NMS Stock. registration of a separate class of equity Book-Entry Settlement at a Securities The operation of the BSTX Market securities for listing on BSTX as Depository Data Blockchain will have no impact or Securities. BSTX does not intend for effect on the manner in which a Securities listed, or intended to be BSTX would also maintain Proposed Security clears and settles. The BSTX listed, on BSTX to be fungible with any BSTX Rule 26135 regarding uniform Market Data Blockchain would be other class of securities from the same book-entry settlement. The rule would implemented through the operation of issuer.20 If an issuer sought to list require each BSTX Participant to use the the proposed BSTX Rules and would securities on BSTX that are not a facilities of a securities depository for occur separate and apart from the separate class of an issuer’s securities, the book-entry settlement of all clearance and settlement process. The BSTX does not intend to approve such transactions in depository eligible Security would be an ordinary equity a class of security for listing on BSTX securities with another BSTX security for NSCC’s and DTC’s as a Security, pursuant to BSTX’s Participant or a member of a national purposes. The BSTX Market Data authority under BSTX Rule 26101. At securities exchange that is not BSTX or Blockchain would be a separate set of the commencement of BSTX’s a member of a national securities market data that uses distributed ledger operations, certain equities (including association.24 Proposed BSTX Rule technology to record certain order and ETPs) would be eligible for listing as 26135 is based on the depository transaction information regarding orders Securities. This would be addressed by eligibility rules of other equities and transactions in Securities on BSTX. BSTX Rules 26102 (Equity Issues), exchanges and Financial Industry 26103 (Preferred Securities), 26105 Issuance of Equity Securities Eligible To Regulatory Authority (‘‘FINRA’’).25 (Warrant Securities) and the Rule 28000 Become a Security Those rules were first adopted as part of Series (Trading and Listing of Exchange a coordinated industry effort in 1995 to With the exception of certain offerings Traded Products), which would be part under Regulation A that meet the of BSTX’s listing rules and would promote book-entry settlement for the proposed BSTX listing standards, all contemplate that only those specified vast majority of initial public offerings Securities traded on BSTX will have types of equity securities would be been offered and sold in registered eligible for listing. 21 The term ‘‘street name’’ refers to a securities offerings under the Securities Act, holding structure in which DTC, through its Securities Depository Eligibility nominee Cede & Co., would be the registered holder which means that purchasers of the of the securities and, in turn, DTC would grant Securities will benefit from all of the BSTX would maintain rules that security entitlements in such securities to relevant protections of registration. The Division would promote a structure in which accounts of its participants. Proposed BSTX Rule of Corporation Finance will need to Securities would be held in ‘‘street 26136 would also provide, with certain exceptions, that securities listed on BSTX must be eligible for make a public interest finding in order a direct registration program operated by a clearing to accelerate the effectiveness of the 20 The Exchange notes that distinct classes of agency registered under Section 17A of the registration statements for these securities issued by an issuer that are Securities Exchange Act. DTC operates the only such program offerings. Because BSTX would be a would not be fungible with another class of today, known as the Direct Registration System, securities of the same issuer because no class of an which permits an investor to hold a security as the facility of a national securities issuer’s securities is fungible with a separate class registered owner in electronic form on the books of exchange, all Securities would be of its securities—otherwise they would be the same the issuer. class of security. To the extent that two classes of registered under Section 12(b) of the 22 Proposed BSTX Rule 26137 is based on current an issuer’s shares had identical voting and NYSE Rule 777. Exchange Act, thereby subjecting all of economic rights but were registered with the 23 these issuers to the reporting regime in Commission as separate classes (e.g., Class A shares See Exchange Act Release No. 78963 Section 13(a) of the Exchange Act. and Class B shares), the two classes of shares could (September 28, 2016), 81 FR 70744, 70748 (October All offerings of securities that are be economically fungible with one another insofar 13, 2016) (footnote 46 and the accompanying text as they convey the same economic and beneficial acknowledge that DTC is the only registered intended to be listed as Securities on rights and interests to investors, but this would not clearing agency that provides securities depository mean that ownership of a Class A share is the same services for the U.S. securities markets). physical delivery of securities certificates, or (ii) as ownership of a Class B share notwithstanding 24 FINRA is currently the only national securities otherwise permits or facilitates the settlement of that each class provides the same economic association registered with the SEC. securities transactions or the hypothecation or benefits. In any case, nothing herein proposes any 25 See e.g., FINRA Rule 11310. Book-Entry lending of securities without physical delivery of change to the existing framework for different Settlement and NYSE Rule 776. Book-Entry securities certificates.’’ classes of securities. Settlement of Transactions.
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and ‘‘thereby reduce settlement risk’’ in The Exchange believes that because permissioned blockchain maintained by the U.S. national market system.26 DTC currently is the only clearing the Exchange. As described further agency registered with the SEC that below, a BSTX Participant would have Participation in a Registered Clearing provides securities depository services, the ability to see detailed information Agency That Uses a Continuous Net at the commencement of BSTX’s about its trading activity on BSTX but Settlement System operations, Securities would be only anonymized information with Under proposed BSTX Rule 25140, securities that have been made eligible respect to the trading activity of other each BSTX Participant would be for services by DTC, including book- BSTX Participants. BSTX Participants required to either (i) be a member of a entry settlement services. would have no obligations with respect registered clearing agency that uses a to providing information to, accessing, continuous net settlement (‘‘CNS’’) Settlement Cycle maintaining, or using the BSTX Market system, or (ii) clear transactions Proposed BSTX Rule 25100(d) would Data Blockchain. The Exchange believes executed on BSTX through a member of address settlement cycle considerations that the information made available on such a registered clearing agency. The regarding trades in Securities. Security the BSTX Market Data Blockchain Exchange believes that today NSCC is trades that result from orders matched would be generally similar to Daily the only registered clearing agency that against the electronic order book of Trade and Quote (‘‘TAQ’’) data made uses a CNS system to clear equity BSTX would be required to clear and available by New York Stock Exchange securities, and proposed BSTX Rule settle pursuant to the rules, policies and LLC except that the Exchange would use 25140 further specifies that BSTX will procedures of a registered clearing distributed ledger or ‘‘blockchain’’ maintain connectivity and access to the agency. As noted above in connection technology to record such information, Universal Trade Capture system of with the description of proposed BSTX a BSTX Participant would be able to see NSCC to transmit confirmed trade Rule 25140, the Exchange expects that non-anonymized information about its details to NSCC regarding trades at the commencement of operations by own trading activity on BSTX, and the executed on BSTX. The proposed rule BSTX it would transmit confirmed trade market data would pertain only to would also address the following: (i) A details to NSCC regarding Security trading activity on BSTX and not the requirement that each Security trades that occur on BSTX and that broader market (e.g., an over-the-counter transaction executed through BSTX NSCC would be the registered clearing (‘‘OTC’’) 29 transaction in a Security must be executed on a locked-in basis agency that clears Security trades. reported to the consolidated tape).30 for automatic clearance and settlement As described in greater detail below processing; (ii) the circumstances under in Part II.I, the Exchange is also Background on Blockchain Technology which the identity of contra parties to proposing that BSTX Participants would In general, a blockchain is essentially a Security transaction that is executed be able to include parameters in orders a ledger that can maintain digital through BSTX would be required to submitted to BSTX to indicate a records of assets, transactions, or other remain anonymous or may be revealed; preference to use faster settlement information. A blockchain’s central and (iii) certain circumstances under cycles that are currently available function is to encode transitions or which a Security transaction may be through NSCC and DTC under certain changes to the ledger. Whenever one cleared through arrangements with a circumstances. BSTX believes that change to the blockchain ledger occurs member of a foreign clearing agency. allowing BSTX Participants to use these to record a state transition, the entire Proposed BSTX Rule 25140 is based on faster settlement cycles where blockchain is immutably changed to a substantially identical rule of the consistent with the rules, policies and reflect the state transition. Investor’s Exchange, LLC (‘‘IEX’’), procedures of a registered clearing There are broadly two types of which, in turn, is consistent with the agency would mitigate settlement risk blockchains: (i) Public blockchains that 27 rules of other equities exchanges. for transactions in such Securities due are decentralized, open to anyone BSTX believes that the operation of its to faster settlement. BSTX believes that running the same protocol; 31 and (ii) a depository eligibility rule and its book- NSCC already has authority under its private, permission-based blockchains entry services rule would promote a rules, policies and procedures to clear where only those granted access may framework in which Securities that certain trades on a T+1 or T+0 basis, view or take other actions with respect would be eligible to be listed and traded which are shorter settlement cycles than to the blockchain. on BSTX would be equity securities that the longest settlement cycle of T+2 that have been made eligible for services by BSTX Market Data Blockchain as a is generally permitted under SEC Rule Private Permissioned Network a registered clearing agency that 15c6–1 for a security trade that involves operates as a securities depository and a broker-dealer.28 Furthermore, BSTX The BSTX Market Data Blockchain that are settled through the facilities of understands that NSCC does already would operate as a private, permission- the securities depository by book-entry. clear trades in accordance with this based blockchain accessible only to authority. BSTX Participants. The Exchange would 26 These coordinated depository eligibility rules control all aspects of the BSTX Market resulted from proposed listing rules amendments The BSTX Market Data Blockchain Data Blockchain. Pursuant to proposed developed by the Legal and Regulatory Subgroup of the U.S. Working Committee, Group of Thirty BSTX will make available to BSTX Rule 17020(b), each BSTX Participant Clearance and Settlement Project. See Securities Participants certain market data related would be assigned a BSTX Market Data Exchange Act Release Nos 35774 (May 26, 1995) to trading activity occurring on BSTX Blockchain address that corresponds to (SR–NASD–95–24), 60 FR 28813 (June 2, 1995); the BSTX Participant’s trading activity 35773 (May 26, 1995), 60 FR 28817 (June 2, 1995) through the use of a private, (SR–NYSE–95–19). 27 See IEX Rule 11.250 (Clearance and Settlement; 28 17 CFR 240.15c6–1. Under SEC Rule 15c6–1, 29 OTC in this context refers to trading occurring Anonymity), which was approved by the with certain exceptions, a broker-dealer is not otherwise than on a national securities exchange. Commission in 2016 as part of its approval of IEX’s permitted to enter a contract for the purchase or 30 See e.g., NYSE, Daily TAQ Fact Sheet, https:// application for registration as a national securities sale of security that provides for payment of funds www.nyse.com/publicdocs/nyse/data/Daily_TAQ_ exchange. Exchange Act Release No. 78101 (June and delivery of securities later than the second Fact_Sheet.pdf. 17, 2016); 81 FR 41142 (June 23, 2016); see also business day after the date of the contract unless 31 A ‘‘protocol’’ in this context generally means a Cboe BZX Rule 11.14 (Clearance and Settlement; otherwise expressly agreed to by the parties at the set of rules governing the format of messages that Anonymity). time of the transaction. are exchanged between the participants.
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on BSTX. The Exchange will also issue information with respect to all orders the BSTX Market Data Blockchain login credentials to each BSTX and messages and executions submitted would be the same substantive Participant through which the BSTX to and occurring on BSTX: information that would be available Participant may access the BSTX Market (1) Symbol, side (buy/sell), limit through the Exchange’s proprietary Data Blockchain to see its order and price, quantity, time-in-force market data feeds, so access to the BSTX transaction information on BSTX as (2) Order type (e.g., limit order, ISO) Market Data Blockchain would not well as certain anonymized market data (3) Order capacity (principal/agent) provide additional information that from other BSTX Participants, as (4) Short/long sale order marking could not otherwise be obtained through discussed further below. (5) Message type (e.g., order, the Exchange’s proprietary market data The BSTX Market Data Blockchain modification, cancellation) feed.33 The Exchange proposes to allow would generally operate by collecting (6) A unique identification number for flexibility to provide additional, information from two sources, which attributable to each order, execution, or anonymized trading activity or general the Exchange would then translate into other message (e.g., cancelation or information to BSTX Participants via information capable of being recorded to modification) Regulatory Circular in order to provide the BSTX Market Data Blockchain. (7) Such other information regarding the Exchange with the ability to Specifically, the data inputs for the a BSTX Participant’s trading activity on enhance the content of General Market BSTX Market Data Blockchain would BSTX as the Exchange may determine Data based on feedback from BSTX come from (i) the BSTX System 32 to and set forth via Regulatory Circular. Participants or in the event that new capture information such as executed Participant Proprietary Data would data elements become relevant in the transactions and (ii) each BSTX effectively contain a record of all of a future. Participant’s order/message information BSTX’s Participant’s trading activity on General Market Data would be passing through the financial BSTX. Participant Proprietary Data anonymized, meaning that a BSTX information exchange (‘‘FIX’’) gateway would only be available to the BSTX Participant would not be able to through which all orders and messages Participant from which such data determine the identity of another BSTX pass in order to connect to the BSTX derived. That is, a BSTX Participant Participant’s orders, quotes, System. For example, if a BSTX would not have access to the Participant cancellations, or other messages. For the Participant sends an order to buy 100 Proprietary Data of another BSTX avoidance of doubt, the alphanumeric shares of Security XYZ, when that order Participant. As a result, no BSTX address assigned to each BSTX is sent to the Exchange, the Exchange Participant would be provided with Participant to facilitate the BSTX Market would capture this information as it access to trading information of another Data Blockchain would not be visible as passes through the FIX gateway in an BSTX Participant in a manner that part of General Market Data.34 As a automated process that results in the would allow for reverse engineering of result, there should not be cause for BSTX Participant being able to see that trading strategies or otherwise concern regarding potential trading order on the BSTX Market Data compromise the confidential nature of information leakage or the ability to Blockchain through its login credentials. each BSTX Participant’s trading reverse engineer another BSTX The BSTX Market Data Blockchain information. The Exchange proposes to Participant’s trading strategies given the does not require any affirmative action allow for flexibility to provide anonymous nature of General Market on the part of a BSTX Participant in additional Participant Proprietary Data Data. BSTX Participants would order for its information to be recorded to each BSTX Participant via Regulatory generally have available to them via the to the BSTX Market Data Blockchain. Circular in order to provide the BSTX Market Data Blockchain the same Rather, the BSTX Market Data Exchange with the ability to enhance information they would have today with Blockchain captures trading activity that the content of Participant Proprietary respect to other BSTX Participants occurs on BSTX in the normal course Data based on feedback from BSTX trading activity in subscribing to an and is made available to BSTX Participants. exchange’s proprietary data feed. Participants as an additional resource General Market Data is the second The Exchange proposes to append that they may choose to use in their type of information that would be timestamps to the information made discretion in the same general manner available on the BSTX Market Data available. Timestamps related to all that a market participant might use TAQ Blockchain, which would consist of: information on the BSTX Market Data (1) All orders, modifications, Blockchain would indicate the time to data. cancellations, and executions occurring the microsecond at which an order Information Available on the BSTX on BSTX in an anonymized format. posted to the BSTX Book or that the Market Data Blockchain (2) Administrative data and other BSTX System took other action with As set forth in proposed Rule information from the Exchange (e.g., respect to an order (e.g., effects a 17020(c), there are two types of trading halts, or technical messages). cancellation, execution, modification). information that would be available on (3) Such other anonymized trading Information would be posted to the the BSTX Market Data Blockchain: (i) A activity or general information as the BSTX Market Data Blockchain on a BSTX Participant’s own order and Exchange may determine and set forth delayed basis of at least 5 minutes. As transaction information related to its via Regulatory Circular. a result, the BSTX Market Data General Market Data is intended to trading activity on BSTX (‘‘Participant Blockchain would not function as a allow BSTX Participants to be able to Proprietary Data’’); and (ii) anonymized, observe the BSTX Order Book, changes 33 The BSTX Market Data Blockchain may include general market data available to all thereto, and executions occurring on certain non-material information, such as a unique BSTX Participants (‘‘General Market BSTX in generally the same manner that order identification number specific to the Data’’). With respect to Participant blockchain that would not be available through a market participant can today see order Proprietary Data, a BSTX Participant proprietary market data products. and transaction information on an 34 would be able to see the following For example, in looking at General Market Data, exchange by subscribing to an BSTX Participant X would not be able to determine exchange’s proprietary market data feed. by name, address, or otherwise that a particular 32 The ‘‘BSTX System’’ refers to the automated order, modification to an existing order, or executed trading system used by BSTX for the trading of The Exchange notes that the General transaction involved BSTX Participant Y or any Securities. See proposed Rule 17000(a)(15). Market Data that would be available on other BSTX Participant.
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substitute for real-time market data. A trading strategies. As proposed, the Moreover, the Exchange believes that BSTX Participant would have the ability BSTX Market Data Blockchain requires new technology, such as blockchain to download market data from the BSTX no affirmative obligation on the part of technology, may be able to help perfect Market Data Blockchain, which it could the BSTX Participant. As a result, if a the mechanism of a free and open use to, for example, back test trading BSTX Participant does not find the market and a national market system, strategies or evaluate executions BSTX Market Data Blockchain to be of consistent with Section 6(b)(5) of the received on BSTX. use to it, it could simply ignore it Exchange Act.40 Finally, in order to promote clarity without cost or penalty. In the event of any disruption to the with respect to how a BSTX Participant Second, the Exchange believes that BSTX Market Data Blockchain or a may use the BSTX Market Data the BSTX Market Data Blockchain will BSTX Participant’s access to the BSTX Blockchain, the Exchange proposes to help familiarize BSTX Participants with Market Data Blockchain, there would be provide in Rule 17020(c)(3) that the the use and capabilities of blockchain no impact on the ability of market information available on the BSTX technology in a manner that does not participants to trade Securities, which Market Data Blockchain does not act as impose any burden on them or other the Exchange believes furthers the a substitute for any recordkeeping market participants. The Commission protection of investors and the public obligations of a BSTX Participant. The has stated that it is ‘‘mindful of the interest, consistent with Section 6(b)(5) Exchange notes that broker-dealers benefits of increasing use of new of the Exchange Act.41 There would also recordkeeping obligations generally technologies for investors and the be no disruption in the distribution of require a much broader set of records markets, and has encouraged market data related to Securities covering the entirety of a broker-dealers experimentation and innovation . . .’’ 36 because the BSTX Market Data trading activity across all trading stating further that ‘‘[i]nformation and Blockchain operates as a separate and centers.35 As a result, the Exchange communications technologies are distinct service of the Exchange. would not expect that a BSTX critical to healthy and efficient primary Participant would ever rely on the BSTX and secondary markets.’’ 37 Regarding Trading Securities on Other National Market Data Blockchain, which would the judgment of whether the benefits of Securities Exchanges contain only its trading activity on certain technologies are meritorious, the Securities would be eligible for BSTX, as a substitute for its Commission has explained its view that trading on other national securities independent recordkeeping obligations. ‘‘[t]he market will ultimately prove the exchanges that extend UTP to them, worth of technology—whether the other than with respect to Thinly Periodic Audit of the BSTX Market Data benefits to the industry and its investors Traded Securities as discussed below in Blockchain by the Exchange of developing and using new services Part II.H. As described above in Part To help ensure the proper functioning are greater than the associated costs.’’ 38 II.E, Securities would be held in ‘‘street of the BSTX Market Data Blockchain Consistent with these statements, the name’’ at DTC, have a CUSIP number, and accuracy of information thereon, Exchange believes that promoting use of and would clear and settle through the the Exchange proposes in Rule blockchain technology through the facilities of a clearing agency registered 17020(c)(3) to periodically audit the BSTX Market Data Blockchain will with the SEC (i.e., NSCC and DTC BSTX Market Data Blockchain. allow BSTX Participants to observe and respectively). As a result, Securities Specifically, the Exchange proposes to increase their familiarity with the would be able to trade on other perform the audit at least bi-annually to capabilities and potential benefits of exchanges and OTC in the same manner ensure that the BSTX Market Data blockchain technology in a context that as other NMS stock. Accordingly, other Blockchain accurately captures order operates within the current equity exchanges would generally be able to and transaction data on BSTX. The market infrastructure and that the extend UTP to Securities in accordance Exchange expects that it will initially proposal will thereby advance and with Commission rules. The BSTX audit the BSTX Market Data Blockchain protect the public’s interest in the use Market Data Blockchain would not more frequently (e.g., monthly) during and development of new data the first year of operation to make sure processing techniques that may create the technology to view the complete history of a the BSTX Market Data Blockchain opportunities for more efficient, transaction where it may not be available today and operates as intended during the period 39 enhance existing records related to securities effective and safe securities markets. transactions.’’ Financial Industry Regulatory of time when the Exchange expects Authority, Distributed Ledger Technology: BSTX Participants to be familiarizing 36 Securities and Exchange Commission, The Implications of Blockchain for the Securities themselves with the BSTX Market Data Impact of Recent Technological Advances on the Industry (January 2017), available at: https:// Blockchain. Securities Markets (Sep. 1997), https:// www.finra.org/sites/default/files/FINRA_ www.sec.gov/news/studies/techrp97.htm. Blockchain_Report.pdf. Further, Paxos Trust Benefits of the BSTX Market Data 37 Id. Company echoed similar themes in connection with Blockchain 38 Id. its receipt of no-action relief from the Commission 39 Report of the Senate Committee on Banking, staff, and explained in its request letter certain The Exchange believes that there are Housing & Urban Affairs, S. Rep. No. 94–75, at 8 benefits of blockchain technology including two primary benefits related to the (1975) (expressing Congress’ finding that new data ‘‘greater data accuracy and transparency, advanced BSTX Market Data Blockchain. First, the processing and communications systems create the security, and increased levels of availability and opportunity for more efficient and effective operational efficiency . . . .’’ See Letter from Exchange believes that a BSTX markets). While the Exchange believes that its Jeffrey S. Mooney, Division of Trading and Markets, Participant may find the information proposal represents an introductory step in pairing Securities and Exchange Commission to Charles useful to them for a variety of purposes the benefits of blockchain technology with the Cascarilla and Daniel Burstein, Paxos Trust such as to review the BSTX Participant’s current equity market infrastructure, other market Company, LLC re: Clearing Agency Registration participants and FINRA have recognized additional Under Section 17A(b)(1) of the Securities Exchange trading activity on BSTX, determine potential benefits to blockchain technology in Act of 1934 (October 28, 2019), https:// what the market was at a particular various applications related to the securities www.sec.gov/divisions/marketreg/mr-noaction/ point in time on BSTX for a given markets. FINRA has stated ‘‘[o]ne of the proposed 2019/paxos-trust-company-102819-17a.pdf. The Security, evaluate execution quality on benefits of [blockchain technology] is the ability to Exchange believes such benefits may be generally offer a timestamped, sequential, audit trail of relevant to future potential applications of BSTX, or download the data to back-test transaction records. This may provide regulators blockchain technology. and other interested parties (e.g., internal audit, 40 15 U.S.C. 78f(b)(5). 35 See e.g., 17 CFR 240.17a–3. public auditors) with the opportunity to leverage 41 Id.
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impact the ability of Securities to trade former Director of the Division of Indeed, as former Chairman Jay Clayton on other exchanges or OTC. Trading and Market Brett Redfearn,47 noted, the Commission’s Statement on the Commission’s Small Business Market Structure Innovation for Thinly Qualifying Thinly Traded Securities Advisory Committee 48 and Traded Securities specifically invites Trading Only on BSTX demonstrated through empirical ‘‘market participants to submit The Exchange proposes to suspend analyses by the Division of Trading and innovative proposals designed to UTP in Securities that meet the Market’s Office of Analytics and improve the secondary market for thinly proposed definition of a ‘‘Thinly Traded Research (‘‘OAR’’) 49 and academics.50 traded securities, including, in Security’’ in order to concentrate A frequently discussed potential connection with such proposals, displayed liquidity for such Securities, solution to these liquidity and poor requests to suspend or terminate make market making in such securities market quality issues facing thinly unlisted trading privileges, known as more attractive, and thereby improve traded securities has been the UTP.’’ 52 In response to the the market quality for such Securities. suspension of UTP for such securities, Commission’s call and to improve the As proposed, Thinly Traded Securities allowing for displayed liquidity to be market quality for thinly traded would still be able to trade OTC, but concentrated on a single exchange.51 securities, the Exchange proposes a would not be eligible for trading on suspension of UTP for qualifying another national securities exchange for Equity Market Structure 2019: Looking Back & ‘‘Thinly Traded Securities,’’ as detailed as long as the Security meets the Moving Forward, Remarks at Gabelli School of further below. Business, Fordham University, New York, New definition of a Thinly Traded Security, York (March 8, 2019) (‘‘2019 Market Structure Thinly Traded Securities Defined described below. Remarks’’), https://www.sec.gov/news/speech/ The Commission, Commission staff, clayton-redfearn-equity-market-structure-2019. The Exchange proposes in Rule the U.S. Department of Treasury,42 47 ‘‘I believe there are serious questions, however, 25150(a) to define ‘‘Thinly Traded about whether the current market structure that Securities’’ as a Security 53 of an academics, and a broad spectrum of works relatively well for very active stocks is market participants have recognized optimal for thinly traded securities.’’ Brett operating company that meets certain that ‘‘the current ‘one-size-fits-all’ Redfearn, Director of the Division of Trading and market capitalization and average daily equity market structure, as largely Markets, Commission, Modernizing U.S. Equity volume of trading (‘‘ADV’’) Market Structure (June 22, 2020) (‘‘2020 Market requirements. The Exchange proposes governed under Regulation NMS, may Structure Remarks’’), https://www.sec.gov/news/ not be optimal for thinly traded speech/clayton-redfearn-modernizing-us-equity- two separate, but similar, types of securities’’ 43 and that ‘‘more needs to be market-structure-2020-06-22. eligibility criteria depending on if a done to promote liquidity and to 48 Advisory Committee on Small and Emerging Security has been publicly traded for at Companies, Commission, Recommendation least six months or if the Security is just improve the listing and trading Regarding Separate U.S. Equity Market for environment for thinly traded Securities of Small and Emerging Companies beginning to trade publicly (i.e., stocks.’’ 44 The Commission noted that (February 1, 2013) (generally finding that the U.S. publicly traded for less than six the ‘‘secondary market for thinly traded equity markets frequently fail to offer a satisfactory months). Specifically, the Exchange trading venue for small and emerging companies, proposes that a Security that has been securities faces liquidity challenges that which (i) has discouraged initial public offerings of can have a negative effect on both the securities of such companies, (ii) undermines publicly traded for at least six months investors and issuers traded securities entrepreneurship, and (iii) weakens the broader shall be considered a Thinly Traded faces liquidity challenges that can have U.S. economy), https://www.sec.gov/info/smallbus/ Security if the Security has (i) market acsec/acsecrecommendation-032113-emerg-co- capitalization of less than $1 billion, a negative effect on both investors and ltr.pdf. issuer’’ including ‘‘wider spreads and 49 Division of Trading and Markets, Commission, and (ii) an average daily volume of less displayed size relative to securities ‘‘Empirical Analysis of Liquidity Demographics and trading of 100,000 shares or less during that trade in greater volume, often Market Quality,’’ (April 10, 2018) (‘‘OAR Report’’), at least four (4) of the preceding six (6) https://www.sec.gov/files/thinly_traded_eqs_data_ calendar months (‘‘Ongoing Eligibility resulting in higher transaction costs for summary.pdf (finding, among other things, that investors.’’ 45 These concerns have been thinly traded securities (i) had, on average, fewer Criteria’’). For a Security that has not echoed in statements by former exchanges quoting at the national best bid or been publicly traded for at least six Commission Chairman Jay Clayton,46 national best offer than more actively traded months, the Exchange proposes that a securities; (ii) had quoted depths at the inside (i.e., Security shall be considered a Thinly the volume of shares available at the highest bid 42 See U.S. Department of the Treasury, ‘‘A and lowest offer) were smaller and quoted spreads Traded Security if during the first three Financial System That Creates Economic (i.e., the difference between bid and offer prices) Opportunities: Capital Markets’’ (October 2017), and relative quoted spreads were greater for these consultation with their underwriter and listing https://www.treasury.gov/press-center/press- thinly traded securities relative to more actively exchange, be permitted to partially or fully suspend releases/Documents/A-Financial-System-Capital- traded securities; and (iii) likely face a trading UTP for their securities and select the exchanges MarketsFINAL-FINAL.pdf (‘‘Treasury Report’’). environment with less market making activity at the and venues upon which their securities will 43 Commission Statement on Market Structure inside (i.e., the highest bid and lowest offer) or in trade.’’); 2019 Market Structure Remarks, at n.13 Innovation for Thinly Traded Securities (Oct. 17, larger order size, which may make finding a (noting that several panelists on the Roundtable on 2019), 84 FR 56956 (Oct. 24, 2019) (‘‘Commission counterparty to execute a particular trade more Market Structure for Thinly-Traded Securities, Statement on Thinly Traded Securities’’). difficult). See also TM Background Paper at 2–3 supported the approach of limiting unlisted trading 44 See Division of Trading and Markets, (summarizing the findings from the OAR Report). privileges, with some suggesting going even farther Commission, ‘‘Background Paper on the Market 50 See e.g., TM Background Paper at 6–7 (noting and considering whether Regulation NMS rules Structure for Thinly Traded Securities,’’ at 9 (Oct. that ‘‘the economic literature in this area [of should be eliminated in this segment of the market). 17, 2019), https://www.sec.gov/rules/policy/2019/ liquidity and trading volume] has consistently 52 2020 Market Structure Remarks. See also thinly-traded-securities-tm-background-paper.pdf documented that stocks with lower trading volume Commission Statement on Thinly Traded Securities (‘‘TM Background Paper’’) (summarizing the views tend to have higher transaction costs’’ and at 56957 (‘‘[t]herefore, for thinly traded securities, of certain participants in the Commission staff’s ‘‘[n]umerous studies have found evidence linking the Commission is interested in considering Roundtable on the Market Structure for Thinly lower liquidity to lower stock prices, which proposals for market structure innovations in Traded Securities in April 2018). suggests that diminished liquidity may also impact conjunction with the potential suspension or 45 Commission Statement on Thinly Traded stock prices. These analyses show that investors termination of UTP and/or the possibility of Securities at 56956. must be paid a premium in order to hold less liquid exemptive relief from Regulation NMS and other 46 ‘‘Illiquidity hampers [thinly-traded issuers] in stocks. Consequently, thinly traded securities may rules under the Exchange Act.’’). many areas, including in their ability to raise have lower stock prices due to diminished 53 The Exchange proposes to define a ‘‘Security’’ additional capital, obtain research coverage, engage liquidity.’’) (internal citations omitted). to mean a NMS stock, as defined in Rule 600(b)(47) in mergers and acquisitions, and hire and retain 51 See e.g., Treasury Report at 60 (‘‘Treasury of the Exchange Act, trading on the BSTX System. personnel.’’ Chairman Jay Clayton, Commission, recommends that issuers of less-liquid stocks, in See proposed Rule 17000(a)(31).
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(3) months of public trading in the greater than $1 billion may be more the previous six months, but would be Security, the Security has a (i) market likely to have or soon have an ADV required to continuously meet the capitalization of less than $1 billion, above 100,000 shares. The OAR Report requirement of an ADV at or below and (ii) an average daily volume of indicates that the median market 100,000 shares for four of the preceding trading of 100,000 shares or less (‘‘Initial capitalization for common stocks with six months on a rolling basis. Eligibility Criteria’’). an ADV between 50,000 to 100,000 shares is $313 million.57 This same Thinly Traded Exchange Traded Thinly Traded Security Criteria figure for common stocks with an ADV Products Thresholds above 100,000 shares is $1.313 billion.58 Importantly, the Exchange proposes to The Exchange believes that the Accordingly, the Exchange believes that limit the availability of Thinly Traded criteria of a market capitalization of less most, if not all, stocks that have an ADV Security status to operating companies. than $1 billion and an ADV of 100,000 of 100,000 shares or less will also have This means that an ETP that is a shares or less are appropriate thresholds a market capitalization of less than $1 Security would not be eligible to be to determine whether a security is billion. The primary purpose of the considered a Thinly Traded Security thinly traded. The ADV requirement is market capitalization threshold is even if it otherwise meets the criteria. the primary indicator of whether a therefore to limit the availability of The Exchange proposes to exclude ETPs security is thinly traded as it helps Thinly Traded Security status to smaller from eligibility because ETPs, even indicate how much liquidity there is in issuers and remove companies whose those with an ADV of 100,000 shares or a stock and the relative ease through securities may soon reach an ADV of less, do not necessarily have the same which an investor may get into and out more than 100,000. problems of a lack of liquidity as thinly of positions in that stock. The The Exchange proposes to set forth traded shares of an operating company. Commission staff’s OAR Report found how it will calculate market For example, participants in the that NMS stocks with ADV of less than capitalization in proposed Rule Commission’s Roundtable on Market 100,000 ‘‘face a trading environment 25150(a)(4). For Ongoing Eligibility Structure for Thinly-Traded Securities with less market making activity at the Criteria, market capitalization would be (the ‘‘Roundtable’’) noted that ‘‘as inside (i.e., the highest bid and lowest determined as the product of (a) the opposed to a corporate stock, an ETP offer) or in larger order size, which may number outstanding shares of the that is thinly traded may still be highly make finding a counterparty to execute Security as reported in the most recent liquid, and that therefore the level of a particular trade more difficult.’’ The quarterly or annual report of the secondary market trading does not OAR Report also found, among other company; and (b) the average closing correlate as closely with liquidity as it things, that NMS stocks with an ADV of price of the Security over the preceding does for corporate stocks.’’ 60 Given that less than 100,000: (i) Have on average, six (6) full calendar months. For Initial the purpose of the Exchange’s proposal fewer exchanges quoting at the national Eligibility Criteria, market capitalization with respect to Thinly Traded Securities best bid or offer (‘‘NBBO’’); (ii) more would be determined as the product of is to improve liquidity and market volume executing away from exchange (a) the number of outstanding shares of quality for small issuers, the Exchange venues indicating that exchange venues the Security as reported in the most believes that it is appropriate to exclude are a relatively less attractive venue for recent quarterly or annual report of the ETPs that, while perhaps thinly traded, executions in such securities; and (iii) company; and (b) the average closing do not appear to suffer from the same have a smaller number of block trades price of the Security over the first three 54 liquidity issues as those faced by the than more actively traded securities. months during which the Security has securities of thinly traded operating The Treasury Report also recommended been publicly traded. The Exchange companies. the use of ADV as a simple approach ‘‘to believes that this is a standard method differentiate between liquid and illiquid for calculating the market capitalization Initial and Ongoing Criteria 55 stocks.’’ Accordingly, the Exchange of a security. As described above, the Exchange Average daily volume would be believes that a threshold of an ADV of proposes different sets of criteria to measured in accordance with the terms trading at or below 100,000 is become a Thinly Traded Security of the proposed Rules—e.g., for Ongoing appropriate because it would limit the depending on how long a Security has Eligibility Criteria, the analysis would Securities for which UTP is suspended been publicly traded. As proposed, the be the average daily share volume of only to those Securities that are in fact earliest in time that a Security could trading in the Security over the thinly traded and for which the become eligible for status as a Thinly preceding six months of trading to Commission’s OAR found concerns Traded Security (and therefore eligible determine whether the ADV is 100,000 with respect to market quality relative to for suspension of UTP, as discussed more widely-traded securities.56 shares or less for four out of those six months. The Exchange believes the use below) would be three months after the The Exchange believes that it is also initial public offering of the Security. appropriate to set a maximum market of a look back of four out of the previous six months is a reasonable approach to The Exchange believes that every capitalization threshold for Thinly Security that undergoes an initial public Traded Securities to ensure that the determine whether a stock is thinly traded and is similar to other offering should initially be available for suspension of UTP (discussed below) is UTP because there is no way to limited to small, thinly traded mechanisms used in Commission rules to evaluate differing regulatory determine a priori whether or not a companies. The Exchange believes that Security will be thinly traded. Only companies with a market capitalization treatment.59 Under this formulation, a Security could have an ADV that after there is some empirical evidence based on the first three months of public 54 See OAR Report and TM Background Paper at exceeded 100,000 shares in up to two of 2. trading that a Security appears to be 55 Treasury Report at 60. 57 OAR Report at 4. 56 The Exchange notes that OAR’s criteria used an 58 Id. 60 Background Paper at 19. Other Roundtable ADV of less than 100,000 shares while the 59 See e.g., 17 CFR 242.301(b)(5) (regarding the participants similarly noted that ‘‘. . . as a practical Exchange proposes to use a criteria of 100,000 triggering of fair access requirements under matter, ETPs have ‘unlimited liquidity’ and an ETP shares or less. The Exchange believes that this de Regulation ATS) and 17 CFR 242.1000 (defining a can be both thinly traded and very liquid at the minimis difference is immaterial. SCI ATS with reference to the volume of its trading. same time.’’ Id.
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thinly traded would the Security freely and openly available on all upon publication of the rule filing in the become eligible. venues and equitably available on other Federal Register. The Exchange proposes in Rule exchange venues. The Exchange The Exchange believes that these rule 25150(a)(3) that a Security that becomes believes that three months is a sufficient filings to effectuate the suspension of a Thinly Traded Security under the amount of time to determine whether a UTP would be appropriately filed Initial Eligibility Criteria would be Security that recently underwent its IPO pursuant to Section 19(b)(3)(A) and Rule considered a Thinly Traded Security is thinly traded given that interest in a 19b–4(f) thereunder as a stated policy, until it has been publicly traded for at Security is likely to be highest around practice, or interpretation with respect least six months, at which time the the time of its IPO in connection with to the meaning, administration, or Security would have to meet the underwriter’s selling efforts and the enforcement of an existing rule.66 Ongoing Eligibility Criteria. In effect, media attention that often accompanies Specifically, the proposed rule change the Exchange proposes that a Security an IPO. Thus, if a Security has an ADV would provide notice of the Exchange’s that meets the Initial Eligibility Criteria of 100,000 shares or less during its first upcoming enforcement of proposed would be deemed to meet such criteria three months of trading despite this Rule 25150 to suspend UTP (or remove until it has been publicly traded for long time period being among the most likely a suspension of UTP) with respect to a enough to determine whether it meets to have the highest market interest in qualifying Thinly Traded Security. the Ongoing Eligibility Criteria. The the Security, the Security is likely to The Exchange believes that exchanges Exchange notes that any suspension of benefit from a suspension of UTP. The are readily capable of suspending UTP, as discussed further below, would Exchange therefore proposes the Initial trading in a security that is currently not be effective for at least thirty days Eligibility Criteria as an early on-ramp traded on their exchange. Exchanges after publication of a rule filing with the to the suspension of UTP for a Security need and provide for the ability to Commission in the Federal Register. As that has not yet traded for a full four to suspend trading in securities on their a result, a Security that meets the Initial six months to be able to determine exchange for regulatory halts, triggering Eligibility Criteria for the first three whether it meets the Ongoing Eligibility of market wide or single stock circuit months that it trades publicly could Criteria. breakers, and to comply with the only have UTP suspended at the earliest Commission’s authority to order a at the commencement of month four Suspension of Unlisted Trading trading halt pursuant to Section 12(k) of and more likely at the four and one half Privileges the Exchange Act.67 Accordingly, the month mark.61 Thus, a Security that As noted above, the Exchange Exchange believes that voluntarily meets the Initial Eligibility proposes that a Security that qualifies as delaying the implementation of the Requirements and for which UTP was a Thinly Traded Security would be suspension of UTP by 30 calendar days suspended would be deemed to be a eligible for a suspension of UTP. The will provide other exchanges and Thinly Traded Security for 1.5 to two Exchange proposes that an issuer of a market participants with adequate months before it would have to meet the qualifying Thinly Traded Security notice and sufficient time to prepare for Ongoing Eligibility Criteria. would have to affirmatively request in a suspension of UTP in the relevant The Exchange believes that this writing that UTP be suspended. The Thinly Traded Security. The Exchange approach of initially allowing a Security Exchange believes that issuers should be also believes that exchanges are also to be eligible for UTP promotes empowered to make the decision as to readily capable of extending UTP to a consistency with Section 6(b)(5) of the whether UTP should be suspended with Security that is not currently traded on 62 68 Exchange Act by helping to perfect respect to the issuer’s Thinly Traded the exchange. Accordingly, the the mechanism of a free and open Security. Exchange believes that other exchanges market and by promoting just and would be able to extend UTP to a Thereafter, in order to effectuate a equitable principles of trade. Security for which the suspension of suspension of UTP and to provide Specifically, the Exchange believes that UTP is lifted shortly after the notice to market participants of the companies engaged in an initial public effectiveness of the rule filing providing suspension of UTP, the Exchange would offering should not have UTP notice of a resumption in UTP with submit an immediately effective rule suspended until it can be determined respect to the Security. filing pursuant to Section 19(b)(3)(A) of whether those shares have an ADV of The Exchange recognizes that the Exchange Act,63 100,000 shares or less and market with the suspending UTP and making BSTX the capitalization of less than $1 billion, effectiveness of such suspension of UTP only national securities exchange on thereby ensuring that IPOs resulting in occurring at least 30 calendar days after which a Thinly Traded Security trades publication of the rule filing in the would increase both the relative a high ADV or market capitalization are 64 Federal Register. Conversely, when a importance of BSTX as a trading venue 61 After a seven business day review period Security no longer meets the definition for such Thinly Traded Security and the during which the Commission may reject a rule of a Thinly Traded Security under the disruption that might arise if access to filing submitted by the Exchange under certain Exchange’s Rules, the Exchange would BSTX were somehow disrupted. circumstances (15 U.S.C. 78s(b)(10)), the similarly submit a rule filing pursuant Commission must publish a proposed rule change Accordingly, the Exchange proposes to by the Exchange within 15 days after the initial to Section 19b(b)(3)(A) within 14 run a live, parallel system in addition to submission by the Exchange to the Commission (15 calendar days of the Thinly Traded the Exchange’s primary system U.S.C. 78s(b)(2)(E)). As a result, a rule filing seeking Security no longer qualifying as a supporting trading in any Thinly Traded suspension of UTP for a qualifying Thinly Traded Thinly Traded Security (and therefore Security would likely only be published in the Federal Register at the earliest after the Security no longer eligible to have UTP 66 15 U.S.C. 78s(b)(3)(A). 17 CFR 240.19b–4(f)(1). 65 had been trading for 3.5 months and the suspension suspended). The resumption of UTP 67 15 U.S.C. 78l(k). of UTP would only commence thirty days thereafter with respect to the former Thinly 68 For example, in November 2000, the (i.e., after the Security had traded for 4.5 months). Traded Security would be effective Commission adopted amendment to Rule 12f–2 Suspension of UTP would then last for a minimum lifting a limitation that previously prevented an of 1.5 months, at which time, the Security would exchange from extending UTP until the day after need to meet the Ongoing Eligibility requirements 63 15 U.S.C. 78s(b)(3)(A). trading commenced on the primary listing to continue to have UTP continue to be suspended. 64 See proposed Rule 25150(b)(1). exchange. See Exchange Act Release No. 43217, 65 62 15 U.S.C. 78f(b)(5). 65 See proposed Rule 25150(b)(2). FR 53560 (Sept. 5, 2000).
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Securities for which UTP has been (iii) changes in quotation size; (iv) Exchange Act 74 because other suspended in order to guard against a changes in the depth of liquidity; (v) exchanges could similarly be granted a potential disruption in trading access. changes in spreads (quoted spread and suspension of UTP for qualifying thinly The Exchange would maintain the realized spread); and (vi) changes in traded securities listed on their markets. ability to automatically fail over to the trade size. The Exchange will perform Exchanges can compete with each other other live or ‘‘hot’’ parallel system in the this analysis at least annually (provided in attracting issuers of thinly traded event of any disruption to the primary there is sufficient sample data from the securities to be singly-listed and traded system. preceding year) and make public its on their respective exchanges. In addition, because Thinly Traded findings with respect to how the market Exchanges would still be able to Securities would no longer trade on for Thinly Traded Securities has compete with one another for listings other exchanges via UTP at the election changed as a result of the suspension of and the market for all thinly traded of an issuer and a determination by the UTP. securities could be improved. Moreover, Exchange that the Security qualifies as if the suspension of UTP has the desired a Thinly Traded Security, the Exchange Request for Exemptive Relief effect of improving the overall liquidity plans to remove quotation and trading The Exchange believes that it is in the of a Thinly Traded Security, such activity in Thinly Traded Securities public interest and consistent with Security should hopefully exceed the from the revenue allocation formulas of protection of investors, pursuant to 100,000 share ADV or $1 billion market the appropriate NMS plan for Section 6(b)(5) of the Exchange Act,71 as capitalization thresholds and become consolidated market data through an well as in furtherance of the perfection available for UTP, thus removing any 69 amendment to such plan(s). The of a free and open market and national barrier to competition once the purpose Exchange believes that it would be market system to suspend UTP under for which the suspension of UTP was appropriate to exclude such Thinly this proposal with respect to Thinly initiated has been fulfilled. Traded Securities from the revenue Traded Securities to improve liquidity Similarly, consistent with Section 75 allocation formula so that the Exchange and overall market quality for such 6(b)(5) of the Exchange Act, the does not receive undue compensation Securities. Consistent with the Exchange believes that the proposed from the NMS plan for consolidated Department of the Treasury’s suspension of UTP for Thinly Traded market data arising from the Thinly recommendations, the Exchange Securities would not permit unfair Traded Securities. The existing and believes that ‘‘[c]onsolidating trading to discrimination between customers, proposed revenue allocation formulas fewer venues would simplify the issuers, brokers or dealers, because the apportion revenues from the NMS plan process of making markets in those suspension is for the purpose of in part based on the amount of trading stocks and thereby encourage more furthering the regulatory objective of and quoting occurring on each exchange market makers to provide more liquidity improving market quality for securities in ‘‘Eligible Securities’’ as defined under 72 that are thinly traded. Although non- 70 in those issues.’’ Also consistent with the NMS plan. As a result, BSTX the Department of the Treasury’s Thinly Traded Securities would not be might receive additional profits under recommendations, the Exchange able to have UTP suspended, this the revenue allocation formula if Thinly discriminatory treatment is not ‘‘unfair’’ proposes that there be no limitation on Traded Securities were not excluded given the substantial public interest, as trading OTC in order ‘‘maintain a basic from ‘‘Eligible Securities’’ given that demonstrated through the Commission’s level of competition for execution’’ and BSTX would be the only venue able to statements and by market participants at that an issuer would be provided a quote and trade Thinly Traded the Roundtable, in improving market choice as to whether its qualifying Securities. conditions for thinly traded securities. Thinly Traded Security have UTP Finally, the Exchange proposes to The Exchange believes that the suspended.73 make available each month anonymized proposed suspension of UTP would trade and quotation data relating to In addition, the Exchange believes help protect investors and the public Thinly Traded Securities to regulators, that, consistent with the OAR Report interest, consistent with Section 6(b)(5), academics, and others requesting such which found that NMS stocks with an by concentrating displayed liquidity on market data from the Exchange for the ADV of less than 100,000 shares a single venue, thereby providing purpose of studying the effects of the experience more trading on off- greater incentives for market makers in suspension of UTP. The Exchange exchange venues than on-exchange and Thinly Traded Securities and in turn intends to additionally perform its own have less quoted depth at the inside of making it easier for investors to buy and analysis on the impact of the suspension the market, much of the poor market sell shares of Thinly Traded Securities. of UTP for Thinly Traded Securities to quality is attributable to deficiencies in The Exchange believes that there is a evaluate its efficacy. The Exchange will displayed quotations of Thinly Traded general consensus among members of evaluate market quality for Thinly Securities. As a result the Exchange Commission staff, former Traded Securities across a variety of believes that it is appropriate to suspend Commissioners (including former metrics including an analysis of: (i) trading on other exchanges—i.e., other Chairman Jay Clayton), the Department Relative trading volumes on BSTX venues displaying liquidity—in order to of the Treasury, and market versus OTC; (ii) improvements in ADV; concentrate displayed liquidity on a participants, as well as empirical single exchange, while still allowing evidence, making clear that operating 69 The Exchange notes that certain exchanges trading to occur in the OTC market. company stocks with an ADV of less have challenged the Commission’s May 6, 2020, The Exchange does not believe that than 100,000 shares suffer significant order directing the self-regulatory organizations to develop a new NMS plan for consolidated market the suspension of UTP for Thinly liquidity and market quality challenges data. Exchange Act Release No. 88827 (May 5, Traded Securities will impose a burden not faced by stocks with greater trading 2020), 85 FR 28702 (May 13, 2020). The Exchange on competition not necessary or volume. It is for this reason, the would seek to amend the new NMS plan or the appropriate in furtherance of the Exchange believes, that the Commission existing NMS plans as appropriate. specifically solicited requests from 70 See e.g., Exchange Act Release No. 90096 (Oct. 6, 2020), 85 FR 64565, Exhibit D (Oct. 13, 2020) 71 15 U.S.C. 78f(b)(5). https://www.sec.gov/rules/sro/nms/2020/34- 72 Treasury Report at 60. 74 15 U.S.C. 78f(b)(8). 90096.pdf. 73 Id. 75 15 U.S.C. 78f(b)(5).
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exchanges for innovative approaches to a T+0 basis (‘‘Order with a T+0 As a result of this structure, all orders improve the market for thinly traded Preference’’) or on a T+1 basis (‘‘Order in Securities would be eligible to match securities, including requests for with a T+1 Preference’’) would only and execute against any order against suspension of UTP.76 result in executions that would actually which they are marketable with Accordingly, the Exchange plans to settle more quickly than on a T+2 basis settlement to occur at the later submit an application for the if, and only if, all of the conditions in settlement date of any two matching suspension of UTP for Thinly Traded Rule 25060(h) are met and the execution orders. Only where an Order with a T+1 Securities, as described above, to the that is transmitted to NSCC is eligible Preference or an Order with a T+0 Commission pursuant to Rule 12f–3 of for T+0 or T+1 settlement under the Preference match with another Order the Exchange Act, which rule allows rules, policies and procedures of a with a T+1 Preference or Order with a issuers, broker-dealers who make registered clearing agency.81 Any such T+0 Preference will those orders (or markets in a security admitted to UTP, preference included by a BSTX matching portions thereof) be eligible to ‘‘or any other person having a bona fide Participant would only become settle more quickly than the standard interest in the question of termination or operative if the order happens to settlement cycle of T+2. As previously suspension of such unlisted trading execute against another order from a noted in Part II.E, the Exchange believes privileges’’ to submit an application for BSTX Participant that also includes a that the clearance and settlement the suspension of UTP consistent with parameter indicating a preference for processes at NSCC and DTC are already certain specified requirements.77 The settlement on a T+0 or T+1 basis, as capable of facilitating such shortened Exchange believes that there is good described in more detail below. This settlement times. cause for the suspension of UTP to means that at the time of order entry all The Exchange believes that promote efficiency, competition, and orders in Securities would be regular facilitating shorter settlement cycles as capital formation 78 by facilitating the way orders that would be presumed to permitted under the rules, policies, and trading of Thinly Traded Securities in a settle on a T+2 basis. Faster settlement procedures of a registered clearing manner that addresses structural market consistent with the rules, policies and agency is consistent with Section 6(b)(5) quality challenges in today’s markets for procedures of a registered clearing of the Exchange Act 83 because it is in such securities. agency would occur if and only if two the public interest and furthers the orders execute against each other in a Ability for BSTX Participants To protection of investors as well as helps manner that meets the conditions in Include a Parameter for a Preference for perfect the mechanism of a free and Rule 25060(h). Settlement of Transactions in Securities open market and the national market As proposed, an Order with a T+0 Faster Than T+2 system. Specifically, the Exchange Preference will execute against any believes that BSTX Participants have an As described above in Section II.E.5., order against which it is marketable interest in being able to access risk- BSTX believes that NSCC already has with settlement occurring on a standard reducing market functionality that is authority under its rules, policies and settlement cycle (T+2) except where: (i) presently available and compatible with procedures to clear certain trades on a The Order with a T+0 Preference market structure, such as shorter T+1 or T+0 basis, which are shorter executes against another Order with a settlement cycles, and that this can settlement cycles than the longest T+0 Preference, in which case reduce costs for market participants settlement cycle of T+2 that is generally settlement shall occur on the trade date, settling trading obligations in that permitted under SEC Rule 15c6–1 for a or (ii) the Order with a T+0 Preference Security and reduce settlement risk. For security trade that involves a broker- executes against an Order with a T+1 example, market participants settling 79 dealer. Furthermore, BSTX Preference, in which case settlement trades in a Security on a T+2 basis must understands that NSCC does already shall occur the next trading day after the post margin collateral to NSCC for two clear trades in accordance with this trade date (i.e., T+1). Similarly, as trading days. The margin collateral authority. proposed, an Order with a T+1 cannot otherwise be used until The Exchange proposes that BSTX Preference will execute against any settlement on T+2. In addition, by Participants would be able to include in order against which it is marketable shortening the timing of settlement from their orders in Securities that are with settlement occurring on a standard T+2 to T+1 or T+0, the risk horizon for submitted to BSTX certain parameters to settlement cycle (T+2) except where: (i) a potential default in settling the trade indicate a preference for settlement on The Order with a T+1 Preference is correspondingly shortened as well. a same day (T+0) or next trading day executes against another Order with a This means that market participants (T+1) basis when certain conditions are T+1 Preference or an Order with a T+0 engaged in a transaction settling 80 met. Any such orders would at the Preference, in which case settlement transactions on shorter settlement cycles time of order entry represent orders that occurs on the next trading day after the than T+2 receive the benefits of not would be regular-way and would be trade date (i.e., T+1). In all cases, an having to encumber collateral assets for presumed to settle on a T+2 basis just order not marked with a preference for as long and facing a shorter period of like any other order submitted by a either T+0 or T+1 settlement would be settlement risk. The Exchange believes BSTX Participant that does not include assured under the settlement timing that these benefits in turn free up assets a parameter indicating a preference for logic in proposed Rule 25060(h) of to be used elsewhere in financial faster settlement. As described in greater settlement on T+2. The possibility of a markets, thereby helping to promote the detail below, however, orders in a shortened settlement time would have efficient allocation of capital and Security that include a parameter no impact on the Exchange’s proposed perfecting the mechanism of a free and indicating a preference for settlement on price time priority structure for order 82 matching. Order C) and resting Order C (marked as an Order 76 Commission Statement on Thinly Traded with a T+0 Preference but with priority second to Securities at 56956. 81 See proposed Rule 25100(d). that of Order B). Order A will interact first with 77 17 CFR 240.12f–3. 82 For example, assume Order A is marked as an Order B, notwithstanding that Order C is also 78 15 U.S.C. 78c(f). Order with a T+0 Preference and it is sent to BSTX marketable against Order A and is also marked as 79 See supra note 28. and is marketable against both resting Order B an Order with a T+0 Preference. 80 See proposed Rule 25060(h). (standard T+2 settlement, with time priority over 83 15 U.S.C. 78(f)(b)(5).
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open market.84 All else being equal, the of the conditions in Rule 25060(h) are Proposed BSTX Rules Exchange believes that a BSTX met, as described above, where participant may find that between two settlement faster than T+2 is consistent The discussion in this Part III otherwise identical stocks, one for with the rules, policies and procedures addresses the proposed BSTX Rules that which it may be able to settle the of a registered clearing agency.86 would be adopted as Rule Series 17000 transaction more quickly is more In adopting amendments to SEC Rule through 29000. 15c6–1 in 2017 to shorten the standard attractive than one that settles over a General Provisions of BSTX and settlement cycle for most broker-dealer longer duration and potentially requires Definitions (Rule 17000 Series) collateral to be held for a longer period. transactions in securities from T+3 to The Exchange notes that the proposed T+2, the Commission stated its belief The Exchange proposes to adopt as its potential for shortened settlement that the shorter settlement cycle would Rule 17000 Series (General Provisions of timing for an Order with a T+0 have positive effects regarding the BSTX) a set of general provisions Preference or an Order with a T+1 liquidity risks and costs faced by relating to the trading of Securities and Preference will in no way impact or members in a clearing agency, like other rules governing participation on prevent any market participant that NSCC, that performs central BSTX. Proposed Rule 17000 sets forth 87 desires to effect a trade in a Security on counterparty (‘‘CCP’’) services, and the defined terms used throughout the BSTX from doing so. This is because that it would also have positive effects BSTX Rules. The majority of the under proposed Rule 25060(h), any for other market participants. proposed definitions are substantially Order with a T+1 Preference or Order Specifically, the Commission stated its similar to defined terms used in other with a T+0 Preference will continue to belief that the resulting ‘‘reduction in equities exchange rulebooks, such as interact with any other order in the the amount of unsettled trades and the with respect to the term ‘‘customer.’’ 92 Security against which it is marketable period of time during which the CCP is The Exchange proposes to set forth new (including any order in the Security that exposed to risk would reduce the definitions for certain terms to does not include a parameter indicating amount of financial resources that the specifically identify systems, a preference for settlement faster than CCP members may have to provide to agreements, or persons as they relate to T+2) and a resulting execution will support the CCP’s risk management BSTX and as distinct from other always settle using the latest settlement process . . .’’ and that ‘‘[t]his reduction timing associated with two matching in the potential need for financial Exchange systems, agreements, or orders. Accordingly, non-BSTX resources should, in turn, reduce the persons that may be used in connection Participants seeing a quote in a Security liquidity costs and capital demands with the trading of other options on the 93 on BSTX will remain able to execute clearing broker-dealers face . . . and Exchange. The Exchange also against that quote posted on BSTX even allow for improved capital proposes to define certain unique terms if that quote includes a latent parameter utilization.’’ 88 The Commission went relating to the trading of Securities, 94 for a preference for T+0 or T+1 on to state its belief that shortening the including the term ‘‘Security’’ itself 95 settlement where consistent with the settlement cycle ‘‘would also lead to and ‘‘Thinly Traded Securities,’’ as rules, policies and procedures of a benefits to other market participants, well as for other features of BSTX such registered clearing agency. In this way, including introducing broker-dealers, the Exchange believes that the proposal institutional investors, and retail the later of any two matched orders (e.g., if a T+1 is fully compatible with the current order matches with a T+2 order, the orders would investors’’ such as ‘‘quicker access to settle T+2). Only where an order marked for a market structure and would help perfect funds and securities following trade shorter settlement time matches with another order the mechanism of a free and open execution’’ and ‘‘reduced margin similarly marked would a shorter settlement time market by allowing for shorter charges and other fees that clearing occur. Consequently, the proposed use of shorter settlement times than T+2 where settlement times would not adversely impact any broker-dealers may pass down to other market participant seeking T+2 settlement in a 89 consistent with the rules, policies and market participants[.]’’ The transaction for a Security. procedures of a registered clearing Commission also ‘‘noted that a move to 92 Proposed Rule 17000(a)(17) defines the term agency and where both parties to a a T+1 standard settlement cycle could ‘‘customer’’ to not include a broker or dealer, which transaction in a Security indicate a have similar qualitative benefits of parallels the same definition in other exchange preference for faster settlement than rulebooks. See e.g., IEX Rule 1.160(j). Similarly, the market, credit, and liquidity risk Exchange proposes to define the term ‘‘Regular T+2. reduction for market participants[.]’’ 90 Trading Hours’’ as the time between 9:30 a.m. and Finally, because all orders in BSTX agrees with these statements by 4:00 p.m. Eastern Time. See proposed Rule Securities submitted to BSTX would at the Commission and has therefore 17000(a)(29) cf. IEX Rule 1.160(gg) (defining ‘‘Regular Market Hours’’ in the same manner). the time of the order entry be presumed proposed BSTX Rules 25060(h) and to settle on a regular way T+2 basis and 93 For example, the Exchange proposes to define 25100(d) in a form that would promote the term ‘‘BSTX’’ to mean the facility of the would interact with any other order the benefits of available, shorter Exchange for executing transaction in Securities, against which the order is marketable, settlement cycles.91 the term ‘‘BSTX Participant’’ to mean a Participant the Exchange believes that Orders with or Options Participant (as those terms are defined in the Exchange’s Rule 100 Series) that is a T+0 Preference and Orders with a T+1 86 17 CFR 242.611(b)(2). authorized to trade Securities, and the term ‘‘BSTX Preference would be considered 87 See 17 CFR 240.17Ad–22(a)(2) (defining the System’’ to mean the automated trading system ‘‘protected’’ within the meaning of Rule term ‘‘central counterparty’’ to mean ‘‘a clearing used by BSTX for the trading of Securities. See 611 of the Exchange Act.85 Orders with agency that interposes itself between the proposed Rule 17000(a)(8), (11), and (15). counterparties to securities transactions, acting a T+0 Preference and Orders with a T+1 94 Proposed Rule 17000(a)(31) provides that the functionally as the buyer to every seller and the term ‘‘Security’’ means a NMS stock, as defined in Preference would not fall within the seller to every buyer’’). Rule 600(b)(47) of the Exchange Act, trading on the exception for protected quotation status 88 Exchange Act Release No. 80295 (March 22, BSTX System. The proposed definition further set forth in Rule 611(b)(2) of the 2017), 82 FR 15564, 15570–71 (March 29, 2017). specifies that references to a ‘‘security’’ or Exchange Act because they will only 89 Id. at 15571. ‘‘securities’’ in the Rules may include Securities. 90 settle more quickly than T+2 where all Id. at 15582. 95 Proposed Rule 17000(a)(32) provides that the 91 As described in this Part II.I, an order for a term ‘‘Thinly Traded Security’’ is defined in Rule Security marked for T+0 or T+1 could still interact 25150. See Part II.H for further discussion of Thinly 84 Id. with any other order, including an order with the Traded Securities and the definition set forth in 85 17 CFR 242.611. default T+2 settlement, with settlement to occur at proposed Rule 25150.
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as the ‘‘BSTX Market Data be an existing Options Participant or Business Conduct for BSTX Participants Blockchain.’’ 96 become a Participant of the Exchange (Rule 19000 Series) In addition to setting forth proposed pursuant to the Rule 2000 Series; and The Exchange proposes to adopt as its definitions used throughout the (iii) provide such other information as Rule 19000 Series (Business Conduct for proposed Rules, the Exchange proposes required by the Exchange.100 Proposed BSTX Participants), twenty two rules to specify in proposed Rule 17010 Rule 18010 (Requirements for BSTX relating to business conduct (Applicability) that the Rules set forth in Participants) sets forth certain requirements for BSTX Participants that the Rule 17000 Series to Rule 29000 requirements for BSTX Participants are substantially similar to business Series apply to the trading, listing, and including requirements that each BSTX conduct rules of other exchanges.104 related matters pertaining to the trading Participant comply with Rule 15c3–1 The proposed Rule 19000 Series would of Securities. Proposed Rule 17010(b) under the Exchange Act, comply with specify business conduct requirements provides that, unless specific Rules with respect to: (i) Just and equitable relating to Securities govern or unless applicable books and records requirements, and be a member of a principles of trade; 105 (ii) adherence to the context otherwise requires, the 106 registered clearing agency or clear law; (iii) use of fraudulent provisions of any Exchange Rule (i.e., 107 108 Security transactions through another devices; (iv) false statements; (v) including Exchange Rules in the Rule 109 BSTX Participant that is a member/ know your customer; (vi) fair dealing 100 through 16000 Series) shall be with customers; 110 (vii) suitability; 111 97 participant of a registered clearing applicable to BSTX Participants. This (viii) the prompt receipt and delivery of agency.101 Finally, proposed Rule 18020 is intended to make clear that BSTX securities; 112 (ix) charges for services Participants are subject to all of the (Associated Persons) provides that performed; 113 (x) use of information Exchange’s Rules that may be applicable associated persons of a BSTX obtained in a fiduciary capacity; 114 (xi) to them, notwithstanding that their Participant are bound by the Rules of publication of transactions and trading activity may be limited solely to the Exchange to the same extent as each quotations; 115 (xii) offers at stated trading Securities. The Exchange BSTX Participant. believes that the proposed definitions The Exchange believes that the 104 See Cboe BZX Chapter 5 rules. See also IEX set forth in Rule 17000 are consistent proposed Rule 18000 Series Rule 5.150 with respect to proposed Rule 21040 with Section 6(b)(5) of the Exchange (Prevention of the Misuse of Material, Non-Public Act 98 because they protect investors (Participation on BSTX) is consistent Information). and the public interest by setting forth with Section 6(b)(5) of the Exchange 105 Proposed Rule 19000 (Just and Equitable Act 102 because these proposed rules are Principles of Trade) provides that no BSTX clear definitions that help BSTX Participant, including its associated persons, shall Participants understand and apply designed to promote just and equitable engage in acts or practices inconsistent with just Exchange Rules. Without clearly principles of trade, and protect investors and equitable principles of trade. defining terms used in the Exchanges and the public interest by setting forth 106 Proposed Rule 19010 (Adherence to Law) the requirements to become a BSTX generally requires BSTX Participants to adhere to Rules and providing clarity as to the applicable laws and regulatory requirements. Exchange Rules that may apply, market Participant and specifying that 107 Proposed Rule 19020 (Use of Fraudulent participants could be confused as to the associated persons of a BSTX Devices) generally prohibits BSTX Participants from application of certain rules, which Participant are bound by Exchange effecting a transaction in any security by means of could cause harm to investors. Rules. Under proposed Rule 18000, a a manipulative, deceptive or other fraudulent device or contrivance. BSTX Participant must first become an Participation on BSTX (Rule 18000 108 Proposed Rule 19030 (False Statements) Series) Exchange Participant pursuant to the generally prohibits BSTX Participants and their Exchange Rule 2000 Series which the associated persons from making false statements or The Exchange proposes to adopt as its Exchange believes would help assure misrepresentations in communications with the Rule 18000 Series (Participation on Exchange. that BSTX Participants meet the 109 BSTX), three rules setting forth certain Proposed Rule 19040 (Know Your Customer) appropriate standards for trading on requires BSTX Participants to comply with FINRA requirements relating to participation on BSTX in furtherance of the protection of Rule 2090 as if such rule were part of the Exchange BSTX. Proposed Rule 18000 (BSTX Rules. investors.103 Participation) establishes ‘‘BSTX 110 Proposed Rule 19050 (Fair Dealing with Participants’’ as a new category of Customers) generally requires BSTX Participants to 100 Proposed Rule 18000 also sets forth the deal fairly with customers and specifies certain Exchange participation for effecting Exchange’s review process regarding BSTX activities that would violate the duty of fair dealing transactions on the BSTX System, Participation Agreements and certain limitations on (e.g., churning or overtrading in relation to the provided they: (i) Complete the BSTX the ability to transfer BSTX Participant status (e.g., objectives and financial situation of a customer). Participant Application, Participation in the case of a change of control). In addition 111 Proposed Rule 19060 (Suitability) provides 99 proposed Rule 18000(b)(2) provides that a BSTX that BSTX Participants and their associated persons Agreement, and User Agreement; (ii) Participant shall continue to abide by all applicable shall comply with FINRA Rule 2111 as if such rule requirements of the Rule 2000 Series, which would were part of the Exchange Rules. 96 Proposed Rule 17000(a)(9) provides that the include, for example, IM–2040–5, which specifies 112 Proposed Rule 19070 (Prompt Receipt and term ‘‘BSTX Market Data Blockchain’’ means the continuing education requirements of Exchange Delivery of Securities) would generally prohibit a private, permissioned blockchain network through Participants and their associated persons. BSTX Participant from accepting a customer’s which a BSTX Participant may access certain order 101 Proposed Rule 18010(b) is similar to the rules purchase order for a security until it can determine and transaction data related to trading activity on of existing exchanges. See e.g., IEX Rule 2.160(c). that the customer agrees to receive the securities BSTX. See Part II.F for further discussion of the Proposed Rule 18010(a) is also similar to the rules against payment. BSTX Market Data Blockchain. of existing exchanges. See e.g., IEX Rule 1.160(s) 113 Proposed Rule 19080 (Charges for Services 97 Proposed Rule 17010 further specifies that to and Cboe BZX Rule 17.2(a). Performed) generally requires that charges imposed the extent the provisions of the Rules relating to the 102 15 U.S.C. 78f(b)(5). on customers by broker-dealers shall be reasonable trading of Securities contained in Rule 17000 Series 103 The Exchange notes that the approach of and not unfairly discriminatory. to Rule 29000 Series are inconsistent with any other requiring members of a facility of an exchange to 114 Proposed Rule 19090 (Use of Information provisions of the Exchange Rules, the Rules relating first become members of the exchange is consistent Obtained in a Fiduciary Capacity) generally restricts to Security trading shall control. with the approach used by another national the use of information as to the ownership of 98 15 U.S.C. 78f(b)(5). securities exchange. See Cboe BZX Rule 17.1(b)(3) securities when acting in certain capacities (e.g., as 99 The BSTX Participant Application, (requiring that a Cboe BZX options member be an a trustee). Participation Agreement, and User Agreement have existing member or become a member of the Cboe 115 Proposed Rule 19100 (Publication of been submitted as Exhibits 3A, 3B, and 3C to the BZX equities exchange pursuant to the Cboe BZX Transactions and Quotations) generally prohibits a proposal respectively. Chapter II Series). BSTX Participant from disseminating a transaction
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prices; 116 (xiii) payments involving other provisions that would not apply to Maintenance and furnishing of books publications that influence the market the trading of Securities on the BSTX and records; 131 (ii) financial reports; 132 price of a security; 117 (xiv) customer System.127 (iii) net capital compliance; 133 (iv) early confirmations; 118 (xv) disclosure of a The Exchange believes that the warning notifications pursuant to Rule control relationship with an issuer of proposed Rule 19000 Series (Business 17a–11 under the Exchange Act; 134 (v) Securities; 119 (xvi) discretionary Conduct) is consistent with Section authority of the Chief Regulatory Officer accounts; 120 (xvii) improper use of 6(b)(5) of the Exchange Act 128 because to impose certain restrictions; 135 (vi) customers’ securities or funds and a these proposed rules are designed to margin; 136 (vii) day-trading margin; 137 prohibition against guarantees and prevent fraudulent and manipulative (viii) customer account information; 138 sharing in accounts; 121 (xviii) the extent acts and practices, promote just and (ix) maintaining records of customer to which sharing in accounts is equitable principles of trade, and complaints; 139 and (x) disclosure of permissible; 122 (xix) communications protect investors and the public interest financial condition.140 with customers and the public; 123 (xx) by setting forth appropriate standards of The Exchange believes that the gratuities; 124 (xxi) telemarketing; 125 conduct applicable to BSTX Participants proposed Rule 20000 (Financial and and (xxii) mandatory systems testing.126 in carrying out their business activities. Operational Rules) Series is consistent The Exchange notes that the proposed For example, proposed Rule 19000 (Just with Section 6(b)(5) of the Exchange financial responsibility rules are and Equitable Principles of Trade) and Act 141 because these proposed rules are virtually identical to those of other 19010 (Adherence to Law) would designed to prevent fraudulent and national securities exchanges other than prohibit BSTX Participants from manipulative acts and practices, changes to defined terms and certain engaging in acts or practices promote just and equitable principles of inconsistent with just and equitable trade, and protect investors and the or quotation information unless the BSTX principles of trade or that would violate public interest by subjecting BSTX Participant believes it to be bona fide. applicable laws and regulations. Participants to certain recordkeeping, 116 Proposed Rule 19110 (Offers at Stated Prices) Similarly, proposed Rule 19050 (Fair generally prohibits a BSTX Participant from offering to transact in a security at a stated price unless it Dealing with Customers) would require 131 Proposed Rule 20000 (Maintenance, Retention is in fact prepared to do so. that BSTX Participants deal fairly with and Furnishing of Books, Records and Other 117 Proposed Rule 19120 (Payments Involving their customers and proposed Rule Information) requires that BSTX Participants comply with current Exchange Rule 1000 Publications that Influence the Market Price of a 19030 (False Statements) would Security) generally prohibits direct or indirect (Maintenance, Retention and Furnishing of Books, payments with the aim of disseminating generally prohibit BSTX Participants, or Records and Other Information) and that BSTX information that is intended to effect the price of their associated persons from making Participants shall submit to the Exchange order, a security. false statements or misrepresentations to market and transaction data as the Exchange may 118 Proposed Rule 19130 (Customer specify by Information Circular. the Exchange. The Exchange believes 132 Confirmations) requires that BSTX Participants Proposed Rule 20010 (Financial Reports) comply with Rule 10b–10 of the Exchange Act. 17 that requiring that BSTX Participants provides that BSTX Participants shall comply with CFR 240.10b–10. comply with the proposed business the requirements of current Exchange Rule 10020 119 Proposed Rule 19140 (Disclosure of Control conduct rules in the Rule 19000 Series (Financial Reports). Relationship with Issuer) generally requires BSTX would further the protection of 133 Proposed Rule 20020 (Capital Compliance) provides that each BSTX Participant subject to Rule Participants to disclose any control relationship investors and the public interest by with an issuer of a security before effecting a 15c3–1 under the Exchange Act (17 CFR 240.15c3– transaction in that security for the customer. promoting high standards of commercial 1) shall comply with such rule and other financial 120 Proposed Rule 19150 (Discretionary Accounts) honor and integrity. In addition, each of and operational rules contained in the proposed generally provides certain restrictions on BSTX the rules in the proposed Rule 19000 Rule 20000 series. 134 Participants handling of discretionary accounts, Series (Business Conduct) is 17 CFR 240.17a–11. Proposed Rule 20030 such as by effecting excessive transactions or (‘‘Early Warning’’ Notification) provides that BSTX obtained authorization to exercise discretionary substantially similar to supervisory Participants subject to the reporting or notifications powers. rules of other exchanges.129 requirements of Rule 17a–11 under the Exchange 121 Proposed Rule 19160 (Improper Use of Act (17 CFR 240.17a–11) or similar ‘‘early warning’’ Customers’ Securities or Funds and Prohibition Financial and Operational Rules for requirements imposed by other regulators shall against Guarantees and Sharing in Accounts) BSTX Participants (Rule 20000 Series) provide the Exchange with certain reports and generally prohibits BSTX Participants from making financial statements. improper use of customers securities or funds and The Exchange proposes to adopt as its 135 Proposed Rule 20040 (Power of CRO to Impose prohibits guarantees to customers against losses. Rule 20000 Series (Financial and Restrictions) generally provides that the Exchange’s 122 Proposed Rule 19170 (Sharing in Accounts; Operational Rules), ten rules relating to Chief Regulatory Officer may impose restrictions Extent Permissible) generally prohibits BSTX financial and operational requirements and conditions on a BSTX Participant subject to the early warning notification requirements under Participants and their associated persons from for BSTX Participants that are sharing directly or indirectly in the profit or losses certain circumstances. of the account of a customer unless certain substantially similar to financial and 136 Proposed Rule 20050 (Margin) sets forth the exceptions apply such as where an associated operational rules of other exchanges.130 required margin amounts for certain securities held person receives prior written authorization from the The proposed Rule 20000 Series would in a customer’s margin account. BSTX Participant with which he or she is specify financial and operational 137 Proposed Rule 20060 (Day Trading Margin) associated. sets forth additional requirements with respect to 123 Proposed Rule 19180 (Communications with requirements with respect to: (i) customers that engage in day trading. Customers and the Public) generally provides that 138 Proposed Rule 20070 (Customer Account BSTX Participants and their associated persons 127 For example, the Exchange is not proposing to Information) requires that BSTX Participants shall comply with FINRA Rule 2210 as if such rule adopt a rule contained in other exchanges’ business comply with FINRA Rule 4512 as if such rule were were part of the Exchange Rules. conduct rules relating to disclosures that broker- part of the Exchange Rules and further clarifies 124 Proposed Rule 19190 (Gratuities) requires dealers give to their customers regarding the risks certain cross-references within FINRA Rule 4512. BSTX Participants to comply with the requirements of effecting securities transactions during times 139 Proposed Rule 20080 (Record of Written set forth in BOX Exchange Rule 3060 (Gratuities). other than during regular trading hours (e.g., higher Customer Complaints) requires that BSTX 125 Proposed Rule 19200 (Telemarketing) requires volatility, possibly lower liquidity) because Participants comply with FINRA Rule 4513 as if that BSTX Participants and their associated persons executions may only occur during regular trading such rule were part of the Exchange Rules. comply with FINRA Rule 3230 as if such rule were hours on the BSTX System. See e.g., IEX Rule 3.290, 140 Proposed Rule 20090 (Disclosure of Financial part of the Exchange’s Rules. Cboe BZX Rule 3.21. Condition) generally requires that BSTX 126 Proposed Rule 19210 (Mandatory Systems 128 15 U.S.C. 78f(b)(5). Participants make available certain information Testing) requires that BSTX Participants comply 129 See supra note 1044. regarding the BSTX Participant’s financial with Exchange Rule 3180 (Mandatory Systems 130 See Cboe BZX Chapter 6 rules and IEX condition upon request of a customer. Testing). Chapter 5 rules. 141 15 U.S.C. 78f(b)(5).
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disclosure, and related requirements information; 147 and (vi) implementation substantially similar to rules of other designed to ensure that BSTX of an anti-money laundering (‘‘AML’’) exchanges.152 These miscellaneous Participants conduct themselves in a compliance program.148 These rules are provisions relate to: (i) Comparison and financially responsible manner. For designed to ensure that BSTX settlement requirements; 153 (ii) failures example, proposed Rule 20000 would Participants are able to appropriately to deliver and failures to receive; 154 (iii) require BSTX Participants to comply supervise their business activities, forwarding of proxy and other issuer- with existing Exchange Rule 1000, review and maintain records with related materials; 155 (iv) which sets forth certain recordkeeping respect to such supervision, and enforce commissions; 156 (v) regulatory services responsibilities and the obligation to specific procedures relating insider- agreements; 157 and (vi) transactions furnish these to the Exchange upon trading and AML. involving Exchange employees.158 request so that the Exchange can The Exchange believes that the These rules are designed to capture appropriately monitor the financial proposed Rule 21000 (Supervision) additional regulatory requirements condition of a BSTX Participant and its Series is consistent with Section 6(b)(5) applicable to BSTX Participants, such as compliance with applicable regulatory of the Exchange Act 149 because these setting forth their obligation to deliver requirements. Similarly, proposed Rule proposed rules are designed to prevent proxy materials at the request of an 20050 would set forth the margin fraudulent and manipulative acts and issuer and to incorporate by reference requirements that BSTX Participants practices, promote just and equitable Rule 200–203 of Regulation SHO.159 must retain with respect to customers principles of trade, and protect investors The Exchange believes that the trading in a margin account to ensure and the public interest by ensuring that proposed Rule 22000 (Miscellaneous that BSTX Participants are not BSTX Participants have appropriate Provisions) Series is consistent with extending credit to customers in a supervisory controls in place to carry Section 6(b)(5) of the Exchange Act 160 manner that might put the financial out their business activities in because these proposed rules are condition of the BSTX Participant in compliance with applicable regulatory designed to prevent fraudulent and jeopardy. Each of the proposed rules in requirements. For example, proposed manipulative acts and practices, the Rule 20000 Series (Financial and Rule 21000 (Written Procedures) would Operational Rules) is substantially require BSTX Participants to enforce 152 See Cboe BZX Chapter 13 rules. See also IEX similar to existing rules of other written procedures which enable them Rule 6.180 with respect to proposed Rule 22050 to supervise the activities of their (Transactions Involving BOX Employees). exchanges or incorporates an existing 153 Proposed Rule 22000 (Comparison and rule of the Exchange or another self- associated persons and proposed Rule Settlement Requirements) provides that a BSTX regulatory organization (‘‘SRO’’) by 21010 (Responsibility of BSTX Participant that is a member of a registered clearing reference. Participants) would require a BSTX agency shall implement comparison and settlement Participant to designate a person in each procedures as may be required under the rules of Supervision (Rule 21000 Series) such entity. The proposed rule would further office to carry out written supervisory provide that, notwithstanding this general The Exchange proposes to adopt as its procedures. Requiring appropriate provision, the Board may extend or postpone the Rule 21000 Series (Supervision), six supervision of a BSTX Participant’s time of delivery of a BSTX transaction whenever rules relating to certain supervisory the Board determines that it is called for by the business activities and associated public interest, just and equitable principles of requirements for BSTX Participants that persons would promote compliance trade or to address unusual conditions. In such a are substantially similar to supervisory with the federal securities laws and case, delivery will occur as directed by the Board. rules of other exchanges.142 The other applicable regulatory 154 Proposed Rule 22010 (Failure to Deliver and Proposed Rule 21000 Series would requirements in furtherance of the Failure to Receive) provides that borrowing and deliveries must be effected in accordance with Rule specify supervisory requirements with protection of investors and the public 203 of Regulation SHO (17 CFR 242.203) and respect to: (i) Enforcing written interest.150 In addition, each of the rules incorporates Rules 200–203 of Regulation SHO by procedures to appropriately supervise in the proposed Rule 21000 Series reference into the rule (17 CFR 242.200 through the BSTX Participant’s conduct and .203). (Supervision) is substantially similar to 155 151 Proposed Rule 22020 (Forwarding of Proxy compliance with applicable regulatory supervisory rules of other exchanges. and Other Information; Proxy Voting) generally requirements; 143 (ii) designation of an Miscellaneous Provisions (Rule 22000 provides that BSTX Participants shall forward individual to carry out written proxy materials when requested by an issuer and supervisory procedures; 144 (iii) Series) sets forth certain conditions and limitations for The Exchange proposes to adopt as its BSTX Participants to give a proxy to vote stock that maintenance and keeping of records is registered in its name. carrying out the BSTX Participant’s Rule 22000 Series (Miscellaneous 156 Proposed Rule 22030 (Commissions) provides written supervisory procedures; 145 (iv) Provisions), six rules relating to a that the Exchange Rules or practices shall not be review of activities of each of a BSTX variety of miscellaneous requirements construed to allow a BSTX Participant or its Participant’s offices, including periodic applicable to BSTX Participants that are associated persons to agree or arrange for the charging of fixed rates commissions for transactions examination of customer accounts to on the Exchange. 147 detect and prevent irregularities or Proposed Rule 21040 (Prevention of the 157 Proposed Rule 22040 (Regulatory Service abuses; 146 (v) the prevention of the Misuse of Material, Non-Public Information) Agreement) provides that the Exchange may enter misuse of material non-public generally requires BSTX Participants to enforce into regulatory services agreements with other SROs written procedures designed to prevent misuse of to assist in carrying out regulatory functions, but material non-public information and sets forth the Exchange shall retain ultimate legal 142 See Cboe BZX Chapter 5 rules. See also IEX examples of conduct that would constitute a misuse responsibility for, and control of, its SRO Rule 5.150 with respect to proposed Rule 21040 of material, non-public information. responsibilities. (Prevention of the Misuse of Material, Non-Public 148 Proposed Rule 21050 (Anti-Money Laundering 158 Proposed Rule 22040 (Transactions Involving Information). Compliance Program). The Exchange already has Exchange Employees) sets forth conditions and 143 Proposed Rule 21000 (Written Procedures). rules with respect to Exchange Participants limitations on a BSTX Participant providing loans 144 Proposed Rule 21010 (Responsibility of BSTX enforcing an AML compliance program set forth in or supporting the account of an Exchange employee Participants) would also require that a copy of a Exchange Rule 10070 (Anti-Money Laundering (e.g., promptly obtaining and implementing an BSTX’s written supervisory procedures be kept in Compliance Program), so proposed Rule 21050 instruction from the employee to provide duplicate each office and makes clear that final responsibility specifies that BSTX Participants shall comply with account statement to the Exchange) in order to for proper supervision rests with the BSTX the requirements of that pre-existing rule. mitigate any potential conflicts of interest that Participant. 149 15 U.S.C. 78f(b)(5). might arise from such a relationship. 145 Proposed Rule 21020 (Records). 150 Id. 159 17 CFR 242.200 through .203. 146 Proposed Rule 21030 (Review of Activities). 151 See supra note 142. 160 15 U.S.C. 78f(b)(5).
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promote just and equitable principles of successively lower prices, or to exchanges,167 and generally prohibits trade, and protect investors and the otherwise engage in activity for the BSTX Participants from trading ahead of public interest by ensuring that BSTX purpose of creating or inducing a false, customer orders unless certain Participants comply with additional misleading or artificial appearance of enumerated exceptions are available regulatory requirements, such as Rule activity in such security.164 Proposed and requires BSTX Participants to have 203 of Regulation SHO 161 as provided Rule 23010 (Fictitious Transactions) a written methodology in place in proposed Rule 22010 (Failure to similarly prohibits BSTX Participants governing execution priority to ensure Deliver and Failure to Receive), in from fictitious transaction activity, such compliance with the Rule. The connection with their participation on as executing a transaction which Exchange proposes to adopt each of the BSTX. For example, proposed Rule involves no beneficial change in exceptions to the prohibition against 22030 (Commissions) prohibits BSTX ownership, and proposed Rule 23020 trading ahead of customer orders as Participants from charging fixed rates of (Excessive Sales by a BSTX Participant) provided in FINRA Rule 5320 other commissions for transactions on the prohibits a BSTX Participant from than the exception related to trading Exchange consistent with Section 6(e)(1) executing purchases or sales in any outside of normal market hours, since of the Exchange Act.162 Similarly, security trading on the Exchange for any trading on the Exchange would be proposed Rule 22050 (Transactions account in which it has an interest, limited to regular trading hours. involving Exchange Employees) sets which are excessive in view of the The Exchange proposes to adopt the forth certain requirements and BSTX Participant’s financial resources order handling procedures requirement prohibitions relating to a BSTX or in view of the market for such in proposed Rule 23050(i) consistent Participant providing certain financial security.165 Proposed Rule 23060 (Joint with the rules of other exchanges.168 services to an Exchange employee, Activity) prohibits a BSTX Participant Specifically, proposed Rule 23050(i) which the Exchange believes helps from directly or indirectly holding any would provide that a BSTX Participant prevent potentially fraudulent and interest or participation in any joint must make every effort to execute a manipulative acts and practices and account for buying or selling a security marketable customer order that it furthers the protection of investors and traded on the Exchange unless reported receives fully and promptly and must the public interest. to the Exchange with certain cross customer orders when they are information provided and proposed marketable against each other consistent Trading Practice Rules (Rule 23000 with the proposed Rule. Series) Rule 23090 (Best Execution) reaffirms BSTX Participants best execution The Exchange proposes to adopt a The Exchange proposes to adopt as its obligations to their customers.166 modified version of the exception set Rule 23000 Series (Trading Practice Proposed Rule 23050 (Prohibition forth in FINRA Rule 5320.06 relating to Rules), 14 rules relating to trading against Trading Ahead of Customer minimum price improvement standards practice requirements for BSTX as proposed in Rule 23050(h). Under Orders) is substantially similar to Participants that are substantially proposed Rule 23050(h), BSTX FINRA 5320 and rules adopted by other similar to trading practice rules of other Participants would be permitted to exchanges.163 The proposed Rule 23000 execute an order on a proprietary basis 164 Proposed Rule 23030 (Manipulative Series would specify trading practice Transactions) specifies further prohibitions relating when holding an unexecuted limit order requirements related to: (i) Market to potential manipulation by prohibiting BSTX in that same security without being manipulation; (ii) fictitious transactions; Participants from, among other things, participating required to execute the held limit order (iii) excessive sales by a BSTX or having any direct or indirect interest in the provided that they give price profits of a manipulative operation or knowingly Participant; (iv) manipulative managing or financing a manipulative operation. improvement of $0.01 to the unexecuted transactions; (v) dissemination of false 165 Other proposed rules relating to potential held limit order. While FINRA Rule information; (vi) prohibition against manipulation include: (i) Rule 23040 5320.06 sets forth alternate, lower price trading ahead of customer orders; (vii) (Dissemination of False Information), which improvement standards for securities joint activity; (viii) influencing data generally prohibits, consistent with Exchange Rule 3080, BSTX Participants from spreading priced below $1, the Exchange proposes feeds; (ix) trade shredding; (x) best information that is false or misleading; (ii) Rule to adopt a uniform price improvement execution; (xi) publication of 23070 (Influencing Data Feeds), which generally requirement of $0.01 for Securities transactions and changes; (xii) trading prohibits transactions to influence data feeds; (iii) traded on the BSTX System consistent ahead of research reports; (xiii) front Rule 23080 (Trade Shredding), which generally prohibits conduct that has the intent or effect of with the Exchange’s proposed uniform running of block transactions; and (xiv) splitting any order into multiple smaller orders for minimum price variant of $0.01 set forth a prohibition against disruptive quoting the primary purpose of maximizing remuneration to in proposed Rule 25030. and trading activity. The purpose of the the BSTX Participant; (iv) Rule 23110 (Trading In addition, the Exchange proposes to trading practice rules is to set forth Ahead of Research Reports), which generally adopt an exception for bona fide error prohibits BSTX Participants from trading based on standards and rules relating to the non-public advance knowledge of a research report transactions as proposed in Rule trading conduct of BSTX Participants, and requires BSTX Participants to enforce policies 25030(g) which would allow a BSTX primarily with respect to prohibiting and procedures to limit information flow from Participant to trade ahead of a customer forms of market manipulation and research personnel to trading personnel that might order if the trade is to correct a bona trade on such information; (v) Rule 23120 (Front specifying certain obligations broker- Running Block Transactions), which incorporates fide error, as defined in the rule. This dealers have to their customers, such as FINRA Rule 5270 as though it were part of the proposed exception is nearly identical the duty of best execution. For example, Exchange’s Rules; and (vi) Rule 23130 (Disruptive to similar exceptions of other proposed Rule 23000 (Market Quoting and Trading Activity Prohibited), which exchanges 169 except that other incorporates Exchange Rule 3220 by reference. Manipulation) sets forth a general 166 In addition, proposed Rule 23100 (Publication exchange rules also provide an prohibition against a BSTX Participant of Transactions and Changes) provides that the exception whereby firms may submit a purchasing a security at successively Exchange will disseminate transaction information proprietary order ahead of a customer higher prices or sales of a security at to appropriate data feeds, BSTX participants must order to offset a customer order that is provide information necessary to facilitate the dissemination of such information, and that an 161 17 CFR 242.203. Exchange official shall be responsible for approving 167 See e.g., Cboe BZX Rule 12.6. 162 15 U.S.C. 78f(e)(1). corrections to any reports transmitted over data 168 See e.g., Cboe BZX Rule 12.6.07. 163 See Cboe BZX Chapter 12 rules. feeds. 169 See e.g., Cboe BZX Rule 12.5.05.
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in an amount other than a round lot (i.e., Participants and trading on the BSTX that BSTX Participants would not allow 100 shares). The Exchange is not System. The Exchange also proposes to for unauthorized access to the BSTX adopting an exception for odd-lot orders adopt as Rule 24010 a minor rule System and would not engage in under these circumstances because the violation plan with respect to conduct detrimental to the maintenance minimum unit of trading for Securities transactions on BSTX.171 of fair and orderly markets. pursuant to proposed Rule 25020 is one Proposed Rule 24000 incorporates by Security. The Exchange believes that reference existing rules that have Rule 25010—Days/Hours there may be a notable amount of already been approved by the Proposed Rule 25010 sets forth the trading in amounts of less than 100 Commission. days and hours during which BSTX Securities (i.e., trading in odd-lot Trading Rules and the BSTX System would be open for business and during amounts), and the Exchange accordingly (Rule 25000 Series) does not believe that it is appropriate to which transactions may be effected on allow BSTX Participants to trade ahead Rule 25000—Access to and Conduct on the BSTX System. Under the proposed of customer orders just to offset an odd- the BSTX Marketplace rule, transactions may be executed on lot customer order. The Exchange proposes to adopt Rule the BSTX System between 9:30 a.m. and The Exchange believes that the 25000 (Access to and Conduct on the 4:00 p.m. Eastern Time. The proposed proposed Rule 23000 Series relating to BSTX Marketplace) to set forth rules rule also specifies certain holidays trading practice rules is consistent with relating to access to the BSTX System BSTX would not be open (e.g., New Section 6(b)(5) of the Exchange Act 170 and certain conduct requirements Year’s Day) and provides that the Chief because these proposed rules are applicable to BSTX Participants. Executive Officer, President, or Chief designed to prevent fraudulent and Specifically, proposed Rule 25000 Regulatory Officer of the Exchange, or manipulative acts and practices that provides that only BSTX Participants, such person’s designee who is a senior could harm investors and to promote including their associated persons, that officer of the Exchange, shall have the just and equitable principles of trade. are approved for trading on the BSTX power to halt or suspend trading in any The proposed rules in the Rule 23000 System shall effect any transaction on Securities, close some or all of BSTX’s Series are substantially similar to the the BSTX System. Proposed Rule facilities, and determine the duration of rules of other exchanges and generally 25000(b) generally requires that a BSTX any such halt, suspension, or closing, include a variety of prohibitions against Participant maintain a list of authorized when such person deems the action types of trading activity or other traders that may obtain access to the necessary for the maintenance of fair conduct that could potentially be BSTX System on behalf of the BSTX and orderly markets, the protection of manipulative, such as prohibitions Participant, have procedures in place investors, or otherwise in the public against market manipulation, fictitious reasonably designed to ensure that all interest. transactions, and the dissemination of authorized traders comply with false information. The Exchange has Exchange Rules and to prevent The Exchange believes that proposed proposed to exclude certain provisions unauthorized access to the BSTX Rule 25010 is designed to protect from, or make certain modifications to, System, and to provide the list of investors and the public interest, comparable rules of other SROs, as authorized traders to the Exchange upon consistent with Section 6(b)(5) of the detailed above, in order to account for request. Proposed Rule 25000(c) and (d) Exchange Act,173 by setting forth the certain unique aspects related to the restate provisions that are already set days and hours that trades may be proposed trading of Securities. The forth in Exchange Rule 7000, generally effected on the BSTX System and by Exchange believes that it is consistent providing that BSTX Participants shall providing officers of the Exchange with with applicable requirements under the not engage in conduct that is the authority to halt or suspend trading Exchange Act to exclude these inconsistent with the maintenance of a when such officers believe that such provisions and exceptions because they fair and orderly market or the ordinary action is necessary or appropriate to set forth requirements that would not and efficient conduct of business, as maintain fair and orderly markets or to apply to BSTX Participants trading in well as conduct that is likely to impair protect investors or in the public Securities and are not necessary for the public confidence in the operations of interest. Exchange to carry out its functions of the Exchange. Examples of such Rule 25020—Units of Trading facilitating Security transactions and prohibited conduct include failure to regulating BSTX Participants. abide by a determination of the Proposed Rule 25020 sets forth the Disciplinary Rules (Rule 24000 Series) Exchange, refusal to provide minimum unit of trading on the BSTX With respect to disciplinary matters, information requested by the Exchange, System, which shall be one Security. the Exchange proposes to adopt Rule and failure to adequately supervise The Exchange believes that proposed 24000 (Discipline and Summary employees. Proposed Rule 25000(f) Rule 25020 is consistent with Section Suspension), which provides that the provides the Exchange with authority to 6(b)(5) of the Exchange Act 174 because provisions of the Exchange Rule 11000 suspend or terminate access to the it fosters cooperation and coordination Series (Summary Suspension), 12000 BSTX System under certain of persons engaged in facilitating Series (Discipline), 13000 Series circumstances. transactions in securities by specifying The Exchange believes that proposed (Review of Certain Exchange Actions), the minimum unit of trading of Rule 25000 is consistent with Section and 14000 Series (Arbitration) of the Securities on the BSTX System. In 6(b)(5) of the Exchange Act 172 because Exchange Rules shall be applicable to addition, other exchanges similarly it is designed to protect investors and BSTX Participants and trading on the provide that the minimum unit of the public interest and promote just and BSTX System. The Exchange already trading is one share for their market equitable principles of trade by ensuring has Rules pertaining to discipline and and/or for certain securities.175 suspension of Exchange Participants 171 The proposed additions to the Exchange’s that it proposes to extend to BSTX minor rule violation plan pursuant to proposed 173 15 U.S.C. 78f(b)(5). Rule 24010 are discussed below in Part IV. 174 15 U.S.C. 78f(b)(5). 170 15 U.S.C. 78f(b)(5). 172 15 U.S.C. 78f(b)(5). 175 See e.g., IEX Rule 11.180.
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Rule 25030—Minimum Price Variant the buy/sell direction of any imbalance priority.183 When the BSTX System Proposed Rule 25030 provides the at the time of dissemination cannot determine an opening price of a (collectively, with the TOP, ‘‘Broadcast BSTX-listed Security at the start of minimum price variant for Securities 179 shall be $0.01. The Exchange believes Information’’). Broadcast Information regular trading hours, BSTX would that proposed Rule 25030 is consistent would be recalculated and disseminated nevertheless open the Security for with Section 6(b)(5) of the Exchange Act every time a new order is received or trading and move all trading interest cancelled and where such event causes received during the Pre-Opening Phase because it fosters cooperation and the TOP or Paired Securities to change. to the BSTX Book.184 coordination of persons engaged in With respect to priority during the For initial public offerings of facilitating transactions in securities by opening match for all Securities, Securities (‘‘Initial Security Offerings’’), specifying the minimum price variant consistent with proposed Rule 25080 the process would be generally the same for Securities and promotes compliance (Execution and Price/Time Priority), as regular market openings. However, in with Rule 612 of Regulation NMS.176 among multiple orders at the same advance of an Initial Security Offering Under Rule 612 of Regulation NMS, the price, execution priority during the auction (‘‘Initial Security Offering Exchange is, among other things, opening match is determined based on Auction’’), the Exchange shall announce prohibited from displaying, ranking or the time the order was received by the a ‘‘Quote-Only Period’’ that shall be accepting from any person a bid or offer BSTX System. between fifteen (15) and thirty (30) or order in an NMS stock in an Consistent with the manner in which minutes plus a short random period increment smaller than $0.01 if that bid the Exchange opens options trading, the prior to the Initial Security Offering or offer or order is priced equal to or BSTX System would determine a single Auction.185 The Quote-Only Period may greater than $1.00 per share. Where a price at which a BSTX-listed Security be extended in certain cases.186 As with bid or offer or order is priced less than would be opened by calculating the regular market openings the Exchange or equal to $1.00 per share, the optimum number of Securities that would disseminate Broadcast minimum acceptable increment is could be matched at a price, taking into Information at the commencement of $0.0001. Proposed Rule 25030 sets a consideration all the orders on the the Quote Only Period, and Broadcast uniform minimum price variant for all BSTX Book.180 Proposed Rule Information would be re-calculated and Securities of $0.01 irrespective of 25040(a)(6) provides that the opening disseminated every time a new order is whether the Security is trading below match price is the price which results in received or cancelled and where such $1.00. the matching of the highest number of event causes the TOP price or Paired Rule 25040—Opening the Marketplace Securities. If two or more prices would Securities to change.187 In the event of satisfy this maximum quantity criteria, any extension to the Quote-Only Period Proposed Rule 25040 sets forth the the price leaving the fewest resting or a trading pause, the Exchange will opening process for the BSTX System Securities in the BSTX Book will be notify market participants regarding the for BSTX-listed Securities and non- selected at the opening price and where circumstances and length of the BSTX-listed securities. For BSTX-listed two or more prices would satisfy the extension.188 Orders will be matched Securities, the Exchange proposes to maximum quantity criteria and leave and executed at the conclusion of the allow for order entry to commence at the fewest Securities in the BSTX Book, Quote-Only Period, rather than at 9:30 8:30 a.m. ET during the Pre-Opening the price closest to the previous day’s a.m. Eastern Time.189 Following the Phase. Proposed Rule 25040(a) provides 181 closing price will be selected. The initial cross at the end of the Quote- that orders will not execute during the opening price must also be within the Only Period wherein orders will execute Pre-Opening Phase, which lasts until ‘‘Collar Price Range’’ as set forth in based on price/time priority consistent regular trading hours begin at 9:30 a.m. proposed Rule 25040(a)(5), which is with proposed Rule 25080, the ET.177 Similar to how the Exchange’s designed to ensure that a Security opens Exchange will transition to normal opening process works for options in an fair and orderly manner and under trading pursuant to proposed Rule trading, BSTX would disseminate a market conditions where there is 25040(a)(6).190 theoretical opening price (‘‘TOP’’) to sufficient quotation interest (e.g., a BSTX Participants, which is the price at national best bid and offer), the market 183 See proposed Rule 25040(a)(7). which the opening match would occur is not crossed, and where the opening 184 Id. 178 at a given moment in time. Under the price will not drastically depart from 185 See proposed Rule 25040(b)(1). proposed rule, the Exchange will also the market at the time of the auction or 186 Such cases are when: (i) There is no TOP; (ii) broadcast other information during the the preceding day’s closing price.182 the underwriter requests an extension; (iii) the TOP Pre-Opening Phase. Specifically, in moves the greater of 10% or fifty (50) cents in the Unexecuted trading interest during the fifteen (15) seconds prior to the initial cross; or (iv) addition to the TOP, the Exchange opening match will move to the BSTX in the event of a technical or systems issue at the would disseminate pursuant to Book and will preserve price time Exchange that may impair the ability of BSTX proposed Rule 25040(a)(3): (i) ‘‘Paired Participants to participate in the Initial Security Offering or of the Exchange to complete the Initial Securities,’’ which is the quantity of 179 Pursuant to proposed Rule 25040(a)(3), any Security Offering. See proposed Rule 25040(b)(2). Securities that would execute at the orders which are at a better price (i.e., bid higher or offer lower) than the TOP would be shown only 187 See proposed Rule 25040(b)(3). TOP; (ii) the ‘‘Imbalance Quantity,’’ as a total quantity on the BSTX Book at a price 188 See proposed Rule 25040(b)(4). The Exchange which is the number of Securities that equal to the TOP. also proposes that if a trading pause is triggered by may not be matched with other orders 180 See proposed Rule 25040(a)(4)(ii). the Exchange or if the Exchange is unable to reopen at the TOP at the time of dissemination; 181 With respect to an initial public offering of a trading at the end of the trading pause due to a systems or technology issue, the Exchange will and (iii) the ‘‘Imbalance Side,’’ which is Security where there is no previous day’s closing price, the opening price would be the price immediately notify the single plan processor assigned to the Security by the underwriter for the responsible for consolidation of information for the 176 17 CFR 242.611. offering, referred to as the ‘‘Initial Security Offering security pursuant to Rule 603 of Regulation NMS 177 As a result, orders marked IOC submitted Reference Price.’’ See Proposed Rule under the Securities Exchange Act of 1934. Id. during the Pre-Opening Phase would be rejected by 25040(a)(5)(ii)(3). 189 See proposed Rule 25040(b)(5). the BSTX System. See proposed Rule 25040(a)(7). 182 See proposed Rule 25040(a)(5). The Exchange 190 As with the regular opening process, orders 178 The TOP can only be calculated where the notes that the auction collars proposed in Rule marked IOC submitted during the Pre-Opening BSTX Book is crossed during the Pre-Opening 25040(a)(5) are substantially similar to those of Phase of an Initial Security Offering Auction would Phase. See proposed Rule 25040(a)(2). Cboe BZX. See Cboe BZX Rule 11.23. be rejected. See proposed Rule 25040(b)(6).
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The Exchange also proposes a process open the Security for trading without an mechanism of a free and open market by for reopening trading following a Limit auction.196 establishing a uniform process to Up-Limit Down Halt or trading pause The opening process with respect to determine the opening price of (‘‘Halt Auctions’’). For Halt Auctions, non-BSTX-listed securities is set forth in Securities.201 Proposed Rule 25040 the Exchange proposes that in advance proposed Rule 25040(e). Pursuant to provides a mechanism by which BSTX of reopening, the Exchange shall that Rule, BSTX Participants who wish Participants may submit orders in announce a Quote-Only Period that to participate in the opening process advance of the start of regular trading shall be five (5) minutes prior to the may submit orders and quotes for hours, perform an opening cross, and Halt Auction.191 This Quote-Only inclusion in the BSTX Book, but such commence regular hours trading in Period may be extended in certain orders and quotes cannot execute until Securities listed on BSTX or otherwise. circumstances.192 The Exchange the termination of the Pre-Opening Where an opening cross is not possible proposes to disseminate the same Phase (‘‘Opening Process’’). Orders that in a BSTX-listed Security, the Exchange Broadcast Information as it does for an are canceled before the Opening Process will proceed by opening regular hours Initial Security Offering Auction and will not participate in the Opening trading in the Security anyway, which would similarly provide notification of Process. The Exchange will attempt to is consistent with the manner in which any extension to the quote-only period perform the Opening Process and will other exchanges open trading in as with an Initial Security Offering match buy and sell orders that are securities.202 With respect to initial Auction.193 The transition to normal executable at the midpoint of the public offerings of Securities and trading would also occur in the same NBBO.197 Generally, the price of the openings after a Limit Up-Limit Down manner as Initial Security Offering Opening Process will be at the midpoint halt or trading pause, BSTX proposes to Auctions, as described above.194 of the first NBBO subsequent to the first use a process with features similar to its The Exchange also proposes to adopt two-sided quotation published by the normal opening process. There are a certain contingency procedures in listing exchange after 9:30:00 a.m. variety of different ways in which an proposed Rule 25040(d) that would Eastern Time. Pursuant to proposed exchange can open trading in securities, provide that when a disruption occurs Rule 25040(e)(4), if the conditions to including with respect to an initial that prevents the execution of an Initial establish the price of the Opening public offering of a Security, and the Security Offering Auction the Exchange Process set forth above do not occur by Exchange believes that proposed Rule will publicly announce the Quote-Only 9:45:00 a.m. Eastern Time, orders will 25040 provides a simple and clear Period for the Initial Security Offering be handled in time sequence, beginning method for opening transactions that is with the order with the oldest time consistent with the protection of Auction, and the Exchange will then 203 cancel all orders on the BSTX Book and stamp, and will be placed on the BSTX investors and the public interest. disseminate a new scheduled time for Book cancelled, or executed in Additionally, proposed Rule 25040 the Quote-Only Period and opening accordance with the terms of the order. applies to all BSTX Participants in the match.195 Similarly, when a disruption A similar process will occur for re- same manner and is therefore not occurs that prevents the execution of a opening a non-BSTX-listed security designed to permit unfair 198 Halt Auction, the Exchange will subject to a halt. The proposed discrimination among BSTX Participants. publicly announce that no Halt Auction opening process for Securities listed on will occur, and all orders in the halted another exchange serves as a Rule 25050—Trading Halts Security on the BSTX Book will be placeholder in anticipation of other exchanges eventually listing and trading BSTX proposes to adopt rules relating canceled after which the Exchange will 204 Securities, or the equivalent thereof, to trading halts that are substantially given that there are no other exchanges 191 See proposed Rule 25040(c)(1). Orders marked 201 currently trading Securities. The The Exchange has not proposed to operate a IOC submitted during the Quote-Only Period would closing auction at this time. As a result, the closing be rejected. In addition, Halt Auctions would be proposed process for opening Securities price of a Security on BSTX would be the last subject to the proposed Halt Auction Collar, as set listed on another exchange is similar to regular way transaction occurring on BSTX, which forth in proposed Rule 25040(c)(2)(i) and (ii). These existing exchange rules governing the the Exchange believes is a simple and fair way to proposed collars for Halt Auctions are substantially establish the closing price of a Security that does similar to those provided by Cboe BZX, and are opening of trading of a security listed on not permit unfair discrimination among customers, 199 designed to make sure that the Exchange is able to another exchange. issuers, or broker-dealers consistent with Section reopen trading in a Security in a fair and orderly Consistent with Section 6(b)(5) of the 6(b)(5) of the Exchange Act. Id. This proposed manner. See Cboe BZX Rule 11.23(d). To the extent Exchange Act,200 the Exchange believes process is consistent with the overall proposed an Halt Auction would occur at an ‘‘Impermissible that the proposed process for opening simplified market structure for BSTX, which does Price’’ (i.e., a price outside of the proposed Halt not include a variety of order types offered by other Auction collars), the Exchange would extend the trading in BSTX-listed Securities and exchanges such as market-on-close and limit-on- period of Halt Auction and gradually expand the Securities listed on other exchanges will close orders. The Exchange believes that a scope of the collar price range over time until it is promote just and equitable principles of simplified market structure, including the proposed able to re-open trading in the Security in a manner trade and will help perfect the manner in which a closing price would be consistent with proposed Rule 25040(c)(2). determined, promotes the public interest and the 192 See proposed Rule 25040(c)(2). The Quote- protection of investors consistent with Section Only Period shall be extended for an additional five 196 See proposed Rule 25040(d)(2). The Exchange 6(b)(5) of the Exchange Act through reduced (5) minutes should a Halt Auction be unable to be notes that these contingency procedures are complexity. Id. performed due to the absence of a TOP (‘‘Initial substantially similar to those of another exchange 202 See e.g., BOX Rule 7070. Extension Period’’). After the Initial Extension (see e.g., IEX Rule 11.350(c)(4)) and are designed to 203 The Exchange notes that its proposed opening, Period, the Exchange proposes that the Quote-Only ensure that the Exchange has appropriate Initial Security Offering Auction, and Halt Auction Period shall be extended for additional five (5) mechanisms in place to address possible processes are substantially similar to those of minute periods should a Halt Auction be unable to disruptions that may arise in an Initial Security another exchange. See Cboe BZX Rule 11.23. The be performed due to absence of a TOP (‘‘Additional Offering Auction or Halt Auction, consistent with key differences between the Exchange’s proposed Extension Period’’) until a Halt Auction occurs. the protection of investors and the public interest processes and those of the Cboe BZX exchange are Under the proposed Rule, the Exchange shall pursuant to Section 6(b)(5) of the Exchange Act. 15 that the Exchange has substantially fewer order attempt to conduct a Halt Auction during the course U.S.C. 78f(b)(5). types, which make its opening process less of each Additional Extension Period. Id. 197 See proposed Rule 25040(e)(2). complex. 193 See proposed Rule 25040(c)(3)–(5). 198 See proposed Rule 25040(e)(5). 204 The Exchange notes that rules on opening 194 Id. 199 See e.g., Cboe BZX Rule 11.24. trading for non-BSTX-listed security are set forth in 195 See proposed Rule 25040(d)(1). 200 15 U.S.C. 78f(b)(5). proposed Rule 25040(e).
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similar to other exchange rules adopted be supported by the Exchange, such as the BSTX System will not support in connection with the NMS Plan to market orders and auction orders. The hidden orders or undisplayed liquidity, Address Extraordinary Market Volatility Exchange has also reserved the right in as set forth in proposed Rule 25100. The (‘‘LULD Plan’’), with certain exceptions proposed Rule 25050(f) to halt or Exchange has also proposed an that reflect Exchange functionality. suspend trading in other circumstances additional order parameter for BSTX BSTX intends to join the LULD Plan where the Exchange deems it necessary Participants to indicate a preference for prior to the commencement of trading to do so for the protection of investors T+0 or T+1 settlement, as previously Securities. Below is an explanation of and in the furtherance of the public described in Item 3, Part II.I. BSTX’s approach to certain categories of interest. Consistent with Section 6(b)(5) of the orders during a trading halt: The Exchange believes that canceling Exchange Act,213 the Exchange believes • Short Sales—BSTX cancels all resting order interest during a trading that the proposed order entry rules will orders on the book during a halt and halt and rejecting incoming orders promote just and equitable principles of rejects any new orders, so rules relating received during the trading halt is trade and help perfect the mechanism of to the repricing of short sale orders consistent with Section 6(b)(5) of the a free and open market by establishing during a trading halt that certain other Exchange Act 209 because it is not the types of orders and modifiers that all exchanges have adopted have been designed to permit unfair BSTX Participants may use in entering omitted. discrimination among BSTX orders to the BSTX System. Because • Pegged Orders—BSTX would not Participants. The orders and trading these order types and TIFs are available support pegged orders, at least initially, interest of all BSTX Participants would to all BSTX Participants, the proposed so rules relating to pegged orders during be canceled in the event of a trading halt rule does not unfairly discriminate a trading halt have been omitted. and each BSTX Participant would be among market participants, consistent • Routable Orders—Pursuant to required to resubmit any orders they with Section 6(b)(5) of the Exchange proposed Rule 25130, the BSTX System had resting on the order book. Act. The proposed rule sets forth a very simple exchange model whereby there will reject any order or quotation that Rule 25060—Order Entry would lock or cross a protected is only one order type—limit orders— Proposed Rule 25060 sets forth the quotation of another exchange (rather and two TIFs. Upon the initial launch manner in which BSTX Participants than routing such order or quotation), of BSTX, there will be no hidden orders, may enter orders to the BSTX System. and therefore rules relating to handling price sliding, pegged orders, or other The BSTX System would initially only of routable orders during a trading halt order type features that add complexity. support limit orders.210 Orders that do have been omitted. The Exchange believes that creating a not designate a limit price would be • Limit Orders—Because BSTX simplified exchange model is designed rejected.211 The BSTX System would to protect investors and is in the public would cancel resting order interest and also only support two time-in-force reject incoming orders during a trading interest because it reduces complexity, (‘‘TIF’’) designations initially: (i) DAY; thereby helping market participants halt, specific rules relating to the and (ii) immediate or cancel (‘‘IOC’’). repricing of limit-priced interest that better understand how orders would DAY orders will queue during the Pre- operate on the BSTX System. certain other exchanges have adopted Opening Phase, may trade during have been omitted.205 Rule 25070—Audit Trail • regular market hours, and, if unexecuted Auction Orders, Market Orders, and at the close of the trading day (4:00 p.m. Proposed Rule 25070 (Audit Trail) is FOK Orders—BSTX would not support ET), are canceled by the BSTX designed to ensure that BSTX these order types, at least initially, so System.212 All orders are given a default Participants provide the Exchange with rules relating to these order types during TIF of DAY. BSTX Participants may also information to be able to identify the 206 a trading halt have been omitted. designate orders as IOC, which source of a particular order and other Pursuant to proposed Rule 25050(d), designation overrides the default TIF of information necessary to carry out the the Exchange would cancel all resting DAY. IOC orders are not accepted by the Exchange’s oversight functions. The orders in a non-BSTX listed security BSTX System during the Pre-Opening proposed rule is substantially similar to subject to a trading halt, reject any Phase. During regular trading hours, IOC existing BOX Rule 7120 but eliminates incoming orders in that Security, and orders will execute in whole or in part certain information unique to orders for will only resume accepting orders immediately upon receipt by the BSTX options contracts (e.g., exercise price) following a broadcast message to BSTX System. The BSTX System will not because Securities are equity securities. Participants indicating a forthcoming re- support modification of resting orders. The proposed rule also provides that 207 opening of trading. To change the price or quantity of an BSTX Participants that employ an BSTX believes that it is in the public order resting on the BSTX Book, a BSTX electronic order routing or order interest and furthers the protection of Participant must cancel the resting order management system that complies with investors, consistent with Section and submit a new order, which will Exchange requirements will be deemed 208 6(b)(5) of the Exchange Act to result in a new time stamp for purposes to comply with the Rule if the required provide for a mechanism to halt trading of BSTX Book priority. In addition, all information is recorded in an electronic in Securities during periods of orders on BSTX will be displayed, and format. The proposed rule also specifies extraordinary market volatility that order information must be kept for consistent with the LULD Plan. 209 Id. no less than three years and that where However, the Exchange has excluded 210 The BSTX System will also accept incoming specific customer or account number rules relating to order types and other Intermarket Sweep Orders (‘‘ISO’’) pursuant to proposed Rule 25060(c)(2). ISOs must be limit information is not provided to the aspects of the LULD Plan that would not orders, are ineligible for routing, may be submitted Exchange, BSTX Participants must with a limit price during Regular Trading Hours, maintain such information on their 205 See e.g., Cboe BZX 11.18(e)(5)(B). and must have a time-in-force of IOC. Proposed books and records. 206 IOC orders would be handled pursuant to Rule 25060(c)(2) is substantially similar to rules of proposed Rule 25050(g)(5). other national securities exchanges. See e.g., Cboe The Exchange believes that proposed 207 Trading would resume pursuant to proposed BZX Rule 11.9(d). Rule 25070 is designed to protect Rule 25040(e)(5). See proposed Rule 25050(g)(7). 211 Proposed Rule 25060(c)(1). 208 15 U.S.C. 78f(b)(5). 212 Proposed Rule 25060(d)(1). 213 15 U.S.C. 78f(b)(5).
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investors and the public interest, effect must occur at a price above the system. The proposed risk controls are consistent with Section 6(b)(5) of the best bid unless the order is market also similar to existing risk controls Exchange Act,214 because it will provide ‘‘short exempt,’’ is consistent with the provided by the Exchange to Options the Exchange with information Exchange Act because it is intended Participants. necessary to carry out its oversight role. promote compliance with Regulation Without being able to identify the SHO in furtherance of the protection of Rule 25100—Trade Execution, source and terms of a particular order, investors and the public interest. Reporting, and Dissemination of the Exchange’s ability to adequately Quotations Rule 25090—BSTX Risk Controls surveil its market, with or through Proposed Rule 25090 sets forth certain Proposed Rule 25100 provides that another SRO, for trading inconsistent the Exchange shall collect and with applicable regulatory requirements risk controls applicable to orders submitted to the BSTX System. The disseminate last sale information for would be impeded. In order to promote transactions executed on the BSTX compliance with Rule 201 of Regulation proposed risk controls are designed to system. The proposed rule further SHO, proposed Rule 25080(b)(3) prevent the submission and execution of provides that the aggregate of the best- provides that when a short sale price potentially erroneous orders. Under the ranked non-marketable Limit Order(s), test restriction is in effect, the execution proposed rule, the BSTX System will pursuant to Rule 25080, to buy and the price of the short sale order must be reject orders that exceed a maximum best-ranked non-marketable Limit higher than (i.e., above) the best bid, order size, as designated by each BSTX Order(s) to sell in the BSTX Book shall unless the sell order is marked ‘‘short Participant. The Exchange, however be collected and made available to exempt’’ pursuant to Regulation SHO. may set default values for this control. The proposed rule also provides a quotation vendors for dissemination. Rule 25080—Execution and Price Time means by which all of a BSTX Proposed Rule 25100 further provides Priority Participant’s orders will be canceled in that the BSTX System will operate as an Proposed Rule 25080 governs the the event that the BSTX Participant ‘‘automated market center’’ within the execution of orders on the BSTX loses its connection to the BSTX meaning of Regulation NMS and will System, providing a price-time priority System. Proposed Rule 25090(c) display ‘‘automated quotations’’ at all model. The proposed rule provides that provides a risk control that prevents times except in the event of a system orders of BSTX Participants shall be incoming limit orders from being malfunction.218 In addition, the ranked and maintained in the BSTX accepted by the BSTX System if the proposed Rule specifies that the Book according to price-time priority, order’s price is more than a designated Exchange shall identify all trades such that within each price level, all percentage away from the National Best executed pursuant to an exception or an orders shall be organized by the time of Bid or Offer in the marketplace. exemption of Regulation NMS. The entry. The proposed rule further Proposed Rule 25090(d) provides a Exchange will disseminate last sale and provides that sell orders may not maximum order rate control whereby quotation information pursuant to Rule execute a price below the best bid in the the BSTX System will reject an 602 of Regulation NMS and will marketplace and buy orders cannot incoming order if the rate of orders maintain connectivity to the securities execute at a price above the best offer in received by the BSTX System exceeds a information processors for the marketplace. Further, the proposed designated threshold. With respect to dissemination of quotation rule ensures compliance with both of these risk controls (price information.219 BSTX Participants may Regulation SHO, Regulation NMS, and protection for limit orders and obtain access to this information the LULD Plan, in a manner consistent maximum order rate), BSTX through the securities information with the rulebooks of other national Participants may designate the processors. securities exchanges.215 appropriate thresholds, but the Proposed Rule 25100(d) provides that The Exchange believes that proposed Exchange may also provide default executions that occur as a result of Rule 25080 is consistent with Section values and mandatory minimum levels. orders matched against the BSTX Book, The Exchange believes the proposed 6(b)(5) of the Exchange Act 216 because pursuant to Rule 25080, shall clear and risk controls in Rule 25090 are it is designed to promote just and settle pursuant to the rules, policies, consistent with Section 6(b)(5) of the equitable principles of trade and foster and procedures of a registered clearing Exchange Act 217 because they are cooperation and coordination with agency. Rule 25100(e) obliges BSTX designed to help prevent the execution persons facilitating transactions in Participants, or a clearing member/ of potentially erroneous orders, which securities by setting forth the order participant clearing on behalf of a BSTX furthers the protection of investors and execution priority scheme for Security Participant to honor trades effected on the public interest. Among other things, transactions. Numerous other exchanges the BSTX System on the scheduled erroneous orders can be disruptive to similarly operate a price-time priority settlement date, and the Exchange shall the operation of an exchange structure for effecting transactions. The not be liable for the failure of BSTX proposed rule also does not permit marketplace, can lead to temporary price dislocations, and can hinder price unfair discrimination among BSTX 218 formation. The Exchange believes that 17 CFR 242.600(b)(4) and (5). The general Participants because all BSTX purpose of an exchange being deemed an Participants are subject to the same offering configurable risk controls to ‘‘automated trading center’’ displaying ‘‘automated price-time priority structure. In BSTX Participants, along with default quotations’’ relates to whether or not an exchange’s quotations may be considered protected under addition, the Exchange believes that values where a BSTX Participant has not designated its desired controls, will Regulation NMS. See Exchange Act Release No. specifying in proposed Rule 25080(b)(3) 51808, 70 FR 37495, 37520 (June 29, 2005). Other that execution of short sale orders when protect investors by reducing the trading centers may not effect transactions that a short sale price test restriction is in number of erroneous executions on the would trade through a protected quotation of BSTX System and will remove another trading center. The Exchange believes that impediments to and perfect the it is useful to specify that it will operate as an 214 15 U.S.C. 78f(b)(5). automated trading center at this time to make clear 215 See e.g., Cboe BZX Rule 11.13(a)(2)–(3) mechanism of a free and open market to market participants that it is not operating a governing regular trading hours. manual market with respect to Securities. 216 15 U.S.C. 78f(b)(5). 217 15 U.S.C. 78f(b)(5). 219 17 CFR 242.602.
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Participants to satisfy these proposed Rule 25100(c), an Official may it would promote just and equitable obligations.220 determine that a transaction is clearly principles of trade, remove The Exchange believes that proposed erroneous if the price of the transaction impediments to, and perfect the Rule 25100 is consistent with Section to buy (sell) that is the subject of the mechanism of, a free and open market 6(b)(5) of the Exchange Act 221 because complaint is greater than (less than) the and a national market system by setting it will foster cooperation and ‘‘Reference Price’’ 225 by an amount that forth the process by which clearly coordination with persons processing equals or exceeds specified ‘‘Numerical erroneous trades on the BSTX System information with respect to, and Guidelines.’’ 226 The Official may may be identified and remedied. facilitating transactions in securities by consider additional factors in Proposed Rule 25110 would apply requiring the Exchange to collect and determining whether a transaction is equally to all BSTX Participants and is disseminate quotation and last sale clearly erroneous, such as whether therefore not designed to permit unfair transaction information to market trading in the security had recently discrimination among BSTX participants. BSTX Participants will halted or overall market conditions.227 Participants, consistent with Section need last sale and quotation information Similar to other exchanges ‘clearly 6(b)(5) of the Exchange Act.231 The to effectively trade on the BSTX System, erroneous rules, the Exchange may proposed rule is substantially similar to and proposed Rule 25100 sets forth the determine that trades are clearly the clearly erroneous rules of other requirement for the Exchange to provide erroneous in certain circumstances such exchanges.232 For example, proposed this information as well as the as during a system disruption or Rule 25110 does not include provisions information to be provided. The malfunction, on a BSTX Officer’s (or related to clearly erroneous transactions proposed rule is similar to rules of other senior employee designee) own motion, for routed orders because orders for exchanges relating to the dissemination during a trading halt, or with respect to Securities will not route to other of last sale and quotation information. a series of transactions over multiple exchanges.233 Securities would also The Exchange believes that requiring days.228 Under proposed Rule only trade during regular trading hours BSTX Participants (or firms clearing 25110(e)(2), BSTX Participants affected (i.e., 9:30 a.m. ET to 4:00 p.m. ET), so trades on behalf of other BSTX by a determination by an Official may provisions from comparable exchange Participants) to honor their trade appeal this decision to the Chief rules relating to clearly erroneous obligations on the settlement date is Regulatory Officer of BSTX, provided executions occurring outside of regular consistent with the Exchange Act such appeal is made within thirty (30) trading hours have been excluded. because it will foster cooperation with minutes after the party making the Proposed Rule 25110 also excludes persons engaged in clearing and settling appeal is given notice of the initial provisions from comparable clearly 229 transactions in Securities, consistent determination being appealed. The erroneous rules of certain other with Section 6(b)(5) of the Exchange Chief Regulatory Officer’s determination exchanges relating to clearly erroneous 222 Act. shall constitute final action by the executions in unlisted trading privileges Exchange on the matter at issue Rule 25110—Clearly Erroneous securities that are subject to an initial pursuant to proposed Rule public offering.234 Proposed Rule 25110 sets forth the 25110(e)(2)(ii). manner in which BSTX will resolve The Exchange believes that proposed The Exchange believes that its clearly erroneous executions that might Rule 25110 is consistent with Section proposed process for BSTX Participants occur on the BSTX System and is 6(b)(5) of the Exchange Act,230 because to appeal clearly erroneous execution substantially similar to comparable determinations made by an Exchange clearly erroneous rules on other minutes after the transaction. Proposed Rule Official pursuant to proposed Rule exchanges. Under proposed Rule 25100, 2511(d). 25110 to the Chief Regulatory Officer of transactions that involve an obvious 225 The Reference Price would be equal to the BSTX is consistent with Section 6(b)(5) consolidated last sale immediately prior to the of the Exchange Act 235 because it error such as price or quantity, may be execution(s) under review except for in canceled after review and a circumstances, such as, for example, relevant news determination by an officer of BSTX or impacting a security or securities, periods of 231 Id. such other employee designee of BSTX extreme market volatility, sustained illiquidity, or 232 See e.g., Cboe BZX Rule 11.17. Similar to other widespread system issues, where use of a different 223 exchanges’ comparable rules, proposed Rule 25110 (‘‘Official’’). BSTX Participants that Reference Price is necessary for the maintenance of provides BSTX with the ability to determine clearly believe they submitted an order a fair and orderly market and the protection of erroneous trades that result from a system erroneously to the Exchange may investors and the public interest. Proposed Rule disruption or malfunction, a BSTX Official acting request a review of the transaction, and 25110(c)(1). on his or her own motion, trading halts, multi-day 226 The proposed Numerical Guidelines are 10% trading events, multi-stock events involving five or must do so within thirty (30) minutes of where the Reference Price ranges from $0.00 to more (but less than twenty) securities whose execution and provide certain $25.00, 5% where the Reference Price is greater executions occurred within a period of five minutes information, including the factual basis than $25.00 up to and including $50.00, and 3% or less, multi-stock events involving twenty or more for believing that the trade is clearly where the Reference Price ranges is greater than securities whose executions occurred within a 224 $50. Proposed Rule 25110(c)(1). period of five minutes or less, securities subject to erroneous, to the Official. Under 227 Proposed Rule 25110(c)(1). the LULD Plan, and for leveraged ETP Securities. 228 See proposed Rule 25110(f)–(j). These 233 Other exchange clearly erroneous rules 220 These proposed provisions are substantially provisions are virtually identical to similar reference removing trades from the Consolidated similar to those of exchanges. See e.g., Nasdaq Rule provisions of other exchanges’ clearly erroneous Tape. Because Security transactions would be 4627 and IEX Rule 10.250. rules other than by making certain administrative reported pursuant to a separate transaction 221 15 U.S.C. 78f(b)(5). edits (e.g., replacing the term ‘‘security’’ with reporting plan, proposed Rule 25110 eliminates 222 Id. ‘‘Security’’). references to the ‘‘Consolidated Tape’’ and provides 223 A transaction made in clearly erroneous error 229 Determinations by an Official pursuant to that clearly erroneous Security transactions will be and canceled by both parties or determined by the proposed Rule 25110(f) relating to system removed from ‘‘all relevant data feeds Exchange to be clearly erroneous would be removed disruptions or malfunctions may not be appealed if disseminating last sale information for Security from the Consolidated Tape. Proposed Rule the Official made a determination that the transactions.’’ See proposed Rule 25110(a). 25110(a). nullification of transactions was necessary for the 234 The Exchange notes that not all equities 224 Proposed Rule 25110(b). The Official may also maintenance of a fair and orderly market or the exchanges have a provision with respect to trade consider certain ‘‘outlier’’ transactions on a case by protection of invests and the public interest. nullification for UTP securities that are the subject case basis where the request for review is submitted Proposed Rule 25110(d)(2). of an initial public offering. See IEX Rule 11.270. after 30 minutes but no longer than sixty (60) 230 15 U.S.C. 78f(b)(5). 235 15 U.S.C. 78f(b)(5).
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promotes just and equitable principles a ‘‘covered security’’ 239 at a price that from engaging in a pattern or practice of of trade and fosters cooperation and is less than or equal to the current displaying quotations that lock or cross coordination with persons regulating, national best bid if the price of that a protected quotation unless an settling, and facilitating transactions in security decreases by 10% or more, as exception applies. The Exchange securities by providing a clear and determined by the listing market for the proposes in Rule 25130(d) that the expedient process to appeal covered security, from the covered BSTX System will reject any order or determinations made by an Official. security’s closing price on the listing quotation that would lock or cross a BSTX Participants benefit from having a market as of the end of Regular Trading protected quotation of another exchange quick resolution to potentially clearly Hours on the prior day (the ‘‘Trigger at the time of entry. erroneous executions and giving the Price’’). The proposed rule further Chief Regulatory Officer discretion to specifies the duration of the ‘‘Short Sale The Exchange believes proposed Rule decide any appeals of an Official’s Price Test’’ and that the BSTX System 25130 is consistent with Section 6(b)(5) determination provides an efficient shall determine whether a transaction in of the Exchange Act 245 because it is means to resolve potential appeals that a covered security has occurred at a designed to promote just and equitable applies equally to all BSTX Participants Trigger Price and shall immediately principles of trade and foster and therefore does not permit unfair notify the responsible single plan cooperation and coordination with discrimination among BSTX processor.240 persons facilitating transactions in Participants, consistent with Section The Exchange believes that proposed securities by ensuring that the Exchange 6(b)(5) of the Exchange Act. The Rule 25120 is consistent with Section prevents display of quotations that lock Exchange notes that, with respect to 6(b)(5) of the Exchange Act,241 because or cross any protected quotation in an options trading on the Exchange, the it would promote just and equitable NMS stock, in compliance with Exchange’s Chief Regulatory Officer principles of trade and further the applicable provisions of Regulation similarly has sole authority to overturn protection of investors and the public NMS. or modify obvious error determinations interest by enforcing rules consistent made by an Exchange Official and that with Regulation SHO. Pursuant to Rule 25140—Clearance and Settlement: such determination constitutes final Regulation SHO, broker-dealers are Anonymity Exchange action on the matter at required to appropriately mark orders as 242 Proposed Rule 25140 provides that issue.236 In addition, proposed Rule long, short, or short exempt, and each BSTX Participant must either (1) 25110(e)(2)(iii) provides that any trading centers are required to establish, be a member of a registered clearing determination made by an Official or maintain, and enforce written policies the Chief Regulatory Officer of BSTX and procedures reasonably designed to, agency that uses a CNS system, or (2) under proposed Rule 25110 shall be among other things, prevent the clear transactions executed on the rendered without prejudice as to the execution or display of a short sale Exchange through another Participant rights of the parties to the transaction to order of a covered security at a price that is a member of such a registered submit their dispute to arbitration. that is less than or equal to the current clearing agency. The Exchange would Accordingly, there is an additional national best bid if the price of that maintain connectivity and access to the safeguard in place for BSTX Participants covered security decreases by 10% or UTC of NSCC for transmission of to seek further review of the Exchange’s more from its closing price on the executed transactions. The proposed clearly erroneous determination. primary listing market on the prior Rule requires a Participant that clears 243 To the extent Securities become day. Proposed Rule 25120 is designed through another participant to obtain a tradeable on other national securities to promote compliance with Regulation written agreement, in a form acceptable exchanges or other changes arise that SHO, is nearly identical to similar rules to the Exchange, that sets out the terms may necessitate changes to proposed of other exchanges, and would apply of such arrangement. The proposed Rule Rule 25110 to conform more closely equally to all BSTX Participants. also provides that BSTX transaction with the clearly erroneous execution Rule 25130—Locking or Crossing reports shall not reveal contra party rules of other exchanges, the Exchange Quotations in NMS Stocks identities and that transactions would intends to implement changes as Proposed Rule 25130 sets forth be settled and cleared anonymously. In necessary through a proposed rule provisions related to locking or crossing certain circumstances, such as for change filed with the Commission quotations. The proposed rule is regulatory purposes, the Exchange may pursuant to Section 19 of the Exchange substantially similar to the rules of other reveal the identity of a Participant or its 237 Act at such future date. national securities exchanges.244 clearing firm such as to comply with a Rule 25120—Short Sales Proposed Rule 25130 is designed to court order. promote compliance with Regulation The Exchange believes that proposed Proposed Rule 25120 sets forth certain NMS and prohibits BSTX participants Rule 25140 is consistent with Section requirements with respect to short sale 6(b)(5) of the Exchange Act 246 because orders submitted to the BSTX System 239 Proposed Rule 25120(b) provides that the it would foster cooperation and that is virtually identical to similar rules terms ‘‘covered security,’’ ‘‘listing market,’’ and on other exchanges.238 Specifically, ‘‘national best bid’’ shall have the same meaning as coordination with persons engaged in proposed Rule 25120 requires BSTX in Rule 201 of Regulation SHO. 17 CFR 242.201(a). regulating, clearing, settling, processing 240 Proposed Rule 25120(d). The proposed rule information with respect to, and Participants to appropriately mark further provides in paragraph (d)(1) that if a covered orders as long, short, or short exempt security did not trade on BSTX on the prior trading facilitating transactions in securities. and provides that the BSTX System will day, BSTX’s determination of the Trigger Price shall Proposed Rule 25140 is similar to rules not execute or display a short sale order be based on the last sale price on the BSTX System of other exchanges relating to clearance for that Security on the most recent day on which and settlement.247 not marked short exempt with respect to the Security traded. 241 15 U.S.C. 78f(b)(5). 236 See BOX Rule 7170(n). 242 17 CFR 242.200(g). 245 15 U.S.C. 78f(b)(5). 237 15 U.S.C. 78s. 243 17 CFR 242.201(b)(1). 246 15 U.S.C. 78f(b)(5). 238 See e.g., IEX Rule 11.290. 244 See IEX Rule 11.310. 247 See e.g. IEX Rule 11.250.
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Rule 25150—Thinly Traded Securities makers with respect to Tier 2 NMS to meet liquidity demands and would and Suspension of Unlisted Trading stocks (as defined under the LULD make it easier for Market Makers and Privileges plan).252 The Exchange believes that the DMMs to meet their quotation Proposed Rule 25150 would set forth proposed Designated Percentage for obligations, which in turn incentivize the criteria for eligible Securities to be quotation obligations of Market Makers more Market Maker participation. considered ‘‘Thinly Traded Securities’’ would be sufficient to ensure that there The Exchange notes that proposed for which UTP may be suspended at the is adequate liquidity sufficiently close Rule 25210 is substantially similar to election of the issuer. Discussion of this to the National Best Bid or Offer NYSE American Rule 7.23E, with the Rule is set forth above in Part II.H. (‘‘NBBO’’) in Securities and to ensure exceptions of: (i) The modified normal fair and orderly markets. The Exchange unit of trading, Designated Percentage, Market Making on BSTX (Rule 25200 notes that pursuant to proposed Rule and Defined Limit (as discussed above); Series) 25210(a)(1)(iii), there is nothing to (ii) specifying that the minimum The BSTX Market Making Rules preclude a Market Maker from entering quotation increment shall be $0.01; and (Rules 25200—25240) provide for trading interest at price levels that are (iii) specifying that Market Maker registration and describe the obligations closer to the NBBO, so Market Makers quotations must be firm for their of Market Makers on the Exchange. The have the ability to quote must closer to displayed size and automatically proposed Market Making Rules also the NBBO than required by the executable. The Exchange believes that provide for registration and obligations Designated Percentage requirement if the additional specifications with of Designated Market Makers (‘‘DMMs’’) they so choose. respect to the minimum quotation in a given Security, allocation of a DMM The Exchange proposes in Rule increment and firm quotation to a particular Security, and parameters 25210(a)(4) that, in the event that price requirement will add additional clarity for business combinations of DMMs. movements cause a Market Maker or to the expectations of Market Makers on Proposed Rule 25200 sets forth the DMM’s quotations to fall outside of the the Exchange. basic registration requirement for a National Best Bid (Offer) (or last sale Proposed Rule 25220 sets forth the BSTX Market Maker by noting that a price in the event there is no National registration requirements for a DMM. Market Maker must enter a registration Best Bid (Offer)) by a given percentage, Under proposed Rule 25220, a DMM request to BSTX and that such with such percentage called the must be a registered Market Maker and registration shall become effective on ‘‘Defined Limit,’’ in a Security for which be approved as a DMM in order to the next trading day after the they are a Market Maker, the Market receive an allocation of Securities registration is entered, or, in the Maker or DMM must enter a new bid or pursuant to proposed Rule 25230, Exchange’s discretion, the registration offer at not more than the Designated which is described below.256 For may become effective the day that it is Percentage away from the National Best Securities in which a Participant serves entered (and the Exchange will provide Bid (Offer) in that Security. The as a DMM, it must meet the same notice to the Market Maker in such Exchange proposes that the Defined obligations as if it were a Market Maker cases). The proposed Rule further Limit shall be 31.5%.253 Under the and must also maintain a bid or offer at provides that a BSTX Market Maker’s proposed Rules, a Market Maker’s the National Best Bid and Offer at least registration shall be terminated by the quotations must be firm and 25% of the day measured across all Exchange if the Market Maker fails to automatically executable for their size, Securities in which such Participant 257 enter quotations within five business and, to the extent the Exchange finds serves as DMM. The proposed Rule days after the registration becomes that a Market Maker has a substantial or provides, among other things, that a effective.248 continued failure to meet its quotation there will be no more than one DMM Proposed Rule 25210 sets forth the obligations, such Market Maker may per Security and that a DMM must obligations of Market Makers, including face disciplinary action from the maintain information barriers between DMMs. Under the proposed Rule, a Exchange.254 Under the proposed the trading unit operating as a DMM and BSTX Participant that is a Market Market Maker and DMM Rules, Market the trading unit operating as a BSTX Maker, including a DMM, is generally Makers and DMMs’ two-sided quotation Market Maker in the same Security (to 258 required to post two-sided quotes obligations must be maintained for a the extent applicable). The Rule during the regular market session for quantity of a ‘‘normal unit of trading’’ further provides a process by which a each Security in which it is registered which is defined as one Security.255 The DMM may temporarily withdraw from as a Market Maker.249 The Exchange Exchange believes that Securities may its DMM status, which is similar to the same process for a BSTX Market proposes that such quotes must be initially trade in smaller increments 259 entered within a certain percentage, relative to other listed equities and that Maker and similar to the same process for DMMs on other called the ‘‘Designated Percentage,’’ of reducing the two-sided quoting 260 the National Best Bid (Offer) price in increment from one round lot (i.e., 100 exchanges. The Exchange notes that such Security (or last sale price, in the shares) to one Security will be sufficient proposed Rule 25220 is substantially event there is no National Best Bid similar to NYSE American Rule 7.24E with the exception that the Exchanges (Offer)) on the Exchange.250 The 252 See NYSE American Rule 7.23E(a)(1)(B)(iii) proposes to add a provision stating that Exchange proposes that the Designated (providing that, other than during certain time periods around the market open and close, the the Exchange is not required to assign Percentage would be 30%.251 The Designated Percentage for Tier 2 NMS stocks priced a DMM if the Security has an adequate Exchange notes that the proposed below $1.00 is 30% and for Tier 2 NMS stocks number of BSTX Market Makers Designated Percentage is substantially priced above $1.00 is 28%). assigned to such Security. The purpose similar to the corresponding Designated 253 See proposed Rule 25210(a)(1)(ii)(3). Percentage for NYSE American market 254 See proposed Rule 25210(b) and (c). Pursuant to proposed Rule 25310(d), a BSTX Market Maker, 256 See proposed 25220(b). DMMs would be other than a DMM, may apply for a temporary approved by the Exchange pursuant to an 248 Proposed Rule 25200 is substantially similar withdrawal from its Market Maker status provided application process an [sic]. to IEX Rule 11.150. it meets certain conditions such as demonstrating 257 See proposed Rule 25220(c). 249 See proposed Rule 25210(a)(1). legal or regulatory requirements that necessitate its 258 See proposed Rule 25220(b). 250 See proposed Rule 25210(a)(1)(ii)(A). temporary withdrawal. 259 See proposed Rule 25210(d). 251 See proposed Rule 25210(a)(1)(ii)(B). 255 See proposed Rule 25210(a)(1). 260 See e.g., NYSE American Rule 7.24E(b)(4).
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of this requirement is to acknowledge DMM for a Security for at least one year Exchange will use to evaluate a the possibility that a Security need not unless compelling circumstances exist proposed combination, and the timing necessarily have a DMM provided that for which the Exchange may consider a for a decision by the Exchange, subject each Security has been assigned at least shorter time period. Each of these to the Exchange’s right to extend such three active Market Makers at initial provisions is substantially similar to time period. The Exchange notes that listing and two Market Makers for corresponding provisions in NYSE proposed Rule 25240 is substantially continued listing, consistent with American Rule 7.25E(b)(1)–(3), with the similar to NYSE American Rule 7.26E. proposed Rule 26106 (Market Maker exception that the Exchange may The Exchange believes that the Requirement), which is discussed shorten the one year DMM commitment proposed Market Making Rules set forth further below. period in compelling circumstances.263 in the Rule 25200 Series are consistent In proposed Rule 25230, the Exchange Proposed Rule 25230(b) further sets with Section 6(b)(5) of the Exchange proposes to set forth the process by forth specific provisions related to a Act 266 because they are designed to which a DMMs are allocated and variety of different issuances and types promote just and equitable principles of reallocated responsibility for a of securities, including spin-offs or trade, to foster cooperation and particular Security. Proposed Rule related companies, warrants, rights, coordination with persons engaged in 25230(a) sets forth the basic eligibility relistings, equity Security listing after facilitating transactions in securities, criteria for when a Security may be preferred Security, listed company and to remove impediments to and allocated to a DMM, providing that this mergers, target Securities, and closed- perfect the mechanism of a free and may occur when the Security is initially end management investment open market and a national market listed on BSTX, when it is reassigned companies.264 Each of these provisions system. The Exchange notes that the pursuant to Rule 25230, or when it is is substantially similar to corresponding proposed Rules are substantially similar currently listed without a DMM provisions in NYSE American Rule to the market making rules of other assigned to the Security.261 Proposed 7.25E(b)(4)–(11). exchanges, as detailed above,267 and Rule 2530(a) also specifies that a DMM’s Proposed Rule 25230(c) sets forth the that all BSTX Participants are eligible to eligibility to participate in the allocation reallocation process for a DMM in a become a Market Maker or DMM process is determined at the time the manner that is substantially similarly to provided they comply with the interview is scheduled by the Exchange corresponding provisions in NYSE proposed requirements.268 The and specifies that a DMM must meet American Rule 7.25E(c). Generally, proposed Market Maker Rules set forth with the quotation requirements set under the proposed Rule, an issuer may the quotation and related expectations forth in proposed Rule 25220(c) (DMM request a reallocation to a new DMM of BSTX Market Makers which the obligations). The proposed Rule further and Exchange staff will review this Exchange believes will help ensure that specifies how the Exchange will handle request, along with any DMM response there is sufficient liquidity in Securities. several situations in which the DMM letter, and eventually make a Although the corresponding NYSE does not meet its obligations, such as, determination.265 Proposed Rule American rules upon which the for example, by issuing an initial 25230(d), (e), and (f), set forth proposed Rules are based provide for warning advising of poor performance if provisions governing an allocation multiple tiers and classes of stocks that the DMM fails to meet its obligations for freeze, allocation sunset, and criteria for were each associated with a different a one-month period.262 applicants that are not currently DMMs Designated Percentage and Defined Proposed Rule 25230(b) sets forth the to be eligible to be allocated a Security Limit, the Exchange has collapsed all manner in which a DMM may be as a DMM respectively. Each of these such classes in to one category and selected and allocated a Security. Under provisions are likewise substantially provided a single Designated Percentage proposed Rule 25230(b), an issuer may similar to corresponding provisions in of 30% and Defined Limit of 31.5% for select its DMM directly, delegate the NYSE American Rule 7.25E(d)–(f). all Security trading on BSTX. The authority to the Exchange to selects its Finally, proposed Rule 25240 sets Exchange believes that simplifying the DMM, or may opt to proceed with forth the DMM combination review Rules in this manner can reduce the listing without a DMM, in which case a policy. The proposed Rule, among other potential for confusion and allows for minimum of three non-DMM Market things, defines a proposed combination easier compliance and will still Makers at initial listing and two non- among DMMs, requires that DMMs adequately serve the liquidity needs of DMM Market Makers for continued provide a written submission to the investors of Security investors, which listing must be assigned to its Security Office of the Corporate Secretary of the the Exchange believes promotes the consistent with proposed Rule 26106. Exchange and specifies, among other removal of impediments to and Proposed Rule 25230(b) further sets things, the items to be disclosed in the perfection of the mechanism of a free forth provisions relating to the interview written submission, the criteria that the and open market and a national market between the issuer and DMMs, the system, consistent with Section 6(b)(5) 263 269 Exchange selection by delegation, and a The Exchange believes that providing the of the Exchange Act. Exchange with flexibility to shorten the one year requirement that a DMM serve as a The Exchange has also proposed that commitment period is appropriate to accommodate the minimum quotation size of Market unforeseen events or circumstances that might arise 261 As previously noted, pursuant to proposed with respect to a DMM, such as a force majeure Makers will be one Security. As noted Rule 26106, a Security may, in lieu of having a event, preventing a DMM from being able to carry above, the Exchange believes that DMM assigned to it, have a minimum of three non- out its functions. Securities may initially trade in smaller DMM Market Makers at initial listing and two non- 264 See proposed Rule 25230(b)(4)–(11). increments relative to other listed DMM Market Makers for continued listing to be 265 In addition, proposed Rule 25230(c)(2) sets eligible for listing on the Exchange. Consequently, forth provisions that allow for the Exchange’s CEO 266 a Security might not have a DMM when it initially to immediately initiate a reallocation proceeding 15 U.S.C. 78f(b)(5). begins trading on BSTX, but may acquire a DMM upon written notice to the DMM and the issuer 267 See NYSE American Rule 7, Section 2. later. when the DMM’s performance in a particular 268 In this regard, the Exchange believes the 262 See proposed Rule 25230(a)(4). The proposed market situation was, in the judgment of the proposed Market Making Rules are not designed to handling of these scenarios where a DMM does not Exchange, so egregiously deficient as to call into permit unfair discrimination between BSTX meet its obligations is substantially similar to question the Exchange’s integrity or impair the Participants, consistent with Section 6(b)(5) of the parallel requirements in NYSE American Rule Exchange’s reputation for maintaining an efficient, Exchange Act. 15 U.S.C. 78f(b)(5). 7.25E(a)(4). fair, and orderly market. 269 15 U.S.C. 78f(b)(5).
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equities and that reducing the two-sided • The BSTX Disclosure Policies consistent with Section 6(b)(5) of the quoting increment from one round lot (26400 Series) are based on the NYSE Exchange Act.274 (i.e., 100 shares) to one Security would American Disclosure Policies (Sections With respect to initial listing be sufficient to meet liquidity demands 401–404). standards for non-ETP Securities, which and would make it easier for Market • The BSTX Dividends and Splits begin at proposed Rule 26101, the Makers and DMMs to meet their Rules (26500 Series) are based on the Exchange proposes to adopt listing quotation obligations, which in turn NYSE American Dividends and Stock standards that are substantially similar incentivize more Market Maker Splits Sections (Sections 501–522). to the NYSE American listing rules.275 participation. The Exchange believes • The BSTX Accounting; Annual and The Exchange believes that adopting that adopting quotation requirements Quarterly Reports Rules (26600 Series) listing rules similar to those in place on and parameters that are appropriate for are based on the NYSE American other national securities exchanges will the nature and types of securities that Accounting; Annual and Quarterly facilitate more uniform standards across will trade on the Exchange will promote Reports Sections (Sections 603–624). exchanges, which helps foster cooperation and coordination with the protection of investors and the • The BSTX Shareholders’ Meetings, persons engaged in regulating, clearing, public interest by assuring that the Approval and Voting of Proxies Rules settling, processing information with Exchange Rules are appropriately (26700 Series) are based on the NYSE respect to, and facilitating transactions tailored to its market. American Shareholders’ Meetings, in securities, consistent with Section Approval and Voting of Proxies Sections BSTX Listing Rules Other Than for 6(b)(5) of the Exchange Act.276 Market Exchange Traded Products and (Sections 701–726).273 • participants that are already familiar Suspension and Delisting Rules (Rule The BSTX Corporate Governance with NYSE American’s listing standards 26000 and 27000 Series) Rules (26800 Series) are based on the will already be familiar with most of the NYSE American Corporate Governance substance of the proposed listing rules. The BSTX Listing Rules Other than Sections (Sections 801–809). for Exchange Traded Products (the The Exchange also believes that • The BSTX Additional Matters Rules ‘‘Non-ETP Listing Rules’’) in the Rule adopting proposed listing standards that (26900 Series) are based on the NYSE Series 26000 and the Suspension and closely resemble those of NYSE American Additional Matters Sections Delisting Rules in the Rule 27000 Series American may also foster competition (Sections 920–994). among listing exchanges for companies have been adapted from, and are • substantially similar to, Parts 1—12 of The BSTX Suspension and seeking to publicly list their securities. the NYSE American LLC Company Delisting Rules (27000 Series) are based The Exchange is proposing an addition Guide.270 Except as described below, on the NYSE American Suspension and (relative to the NYSE American listing each proposed Rule in the BSTX 26000 Delisting Sections (Sections 1001–1011). rules) to the initial listing standards for • 277 and 27000 Series is substantially similar The BSTX Guide to Filing preferred Securities. Specifically, the to a Section of the NYSE American Requirements (27100 Series) are based Exchange proposes an additional Company Guide.271 Below is further on the NYSE American Guide to Filing standard for preferred Securities to list detail. Requirements (Section 1101). on the Exchange based on NASDAQ • Rule 5510.278 The Exchange believes a • The BSTX Rule 26100 Series are The BSTX Procedures for Review of based on the NYSE American Original Exchange Listing Determinations (27200 Series) are based on the NYSE American 274 15 U.S.C. 78f(b)(5). Listing Requirements (Sections 101– 275 See NYSE American Section 101. The 146).272 Procedures for Review of Exchange Exchange understands that the Commission has • The BSTX Original Listing Listing Determinations (Sections 1201– extended relief to NYSE American with respect to Procedures (26200 Series) are based on 1211). certain quantitative listing standards that do not Notwithstanding that the proposed meet the thresholds of SEC Rule 3a51–1. 17 CFR the NYSE American Original Listing 240.3a51–1. Initial listings of securities that do not Procedures (Sections 201–222). Rule 26000 and 27000 Series are meet such thresholds and are not subject to the • The BSTX Additional Listings substantially similar to those of other relief provided to NYSE American would qualify as ‘‘penny stocks’’ and would be subject to additional Rules (26300 Series) are based on the exchanges, BSTX proposes certain additions or modifications to these rules regulation. BSTX notes that it is not seeking relief NYSE American Additional Listings related to SEC Rule 3a51–1 and therefore has Sections (Sections 301–350). specific to its market. For example, clarified proposed Rule 26101(a)(2) to ensure that BSTX proposes to add definitions that issuers have at least one year of operating history. apply to the proposed BSTX Rule 26000 BSTX will also require new listings pursuant to 270 All references to various ‘‘Sections’’ in the proposed Rule 26102 to have a public distribution discussion of these Listing Rules refer to the various and 27000 Series. The definitions set of 1 million Securities, 400 public Security holders, Sections of the NYSE American Company Guide. forth in proposed Rule 26000 are and a minimum market price of $4 per Security. 271 The Exchange notes that while the numbering designed to facilitate understanding of These provisions meet the requirements in SEC of BSTX’s Listing Rules generally corresponds to a these Rule Series by market Rule 3a51–1 and are consistent with the rules of Section of the NYSE American LLC Company other national securities exchanges. See e.g., Guide, BSTX did not integrate certain Sections of participants. Increased clarity may serve Nasdaq Rule 5510. The quantitative thresholds the NYSE American Company Guide that the to remove impediments to and perfect specified in Rule 26102 are also reflected in the Exchange deemed inapplicable to its operations, the mechanism of a free and open Sample Underwriter’s Letter that has been such as with respect to types of securities which the market and a national market system submitted as Exhibit 3L to this proposal. In Exchange is not proposing to make eligible for addition, the Exchange notes that proposed Rule listing (i.e., bonds, debentures, securities of foreign and may also foster cooperation and 26140, which governs the additional listing companies (other than Canadian companies), coordination with persons engaged in requirements of a company that is affiliated with investment trusts, and securities such as equity- regulating, clearing, settling, processing the Exchange, is based on similar provisions in linked term notes). The Exchange also proposes to NYSE American Rule 497 and IEX 14.205. information with respect to, and 276 modify cross-references in the proposed Non-ETP facilitating transactions in securities, 15 U.S.C. 78f(b)(5). Listing Rules to accord with its Rules. 277 See proposed Rule 26103. 272 Pursuant to proposed Rule 26136, all 278 See proposed Rule 26103(b)(2). Preferred securities initially listing on BSTX, except 273 The Exchange notes that the proposed fees for Security Distribution Standard 2 requires that a securities which are book-entry only, must be certain items in the proposed Listing Rules (e.g., preferred Security listing satisfy the following eligible for a Direct Registration Program operated proxy follow-up mailings) are the same as those conditions: Minimum bid price of at least $4 per by a clearing agency registered under Section 17A charged by NYSE American. See e.g., proposed IM– Security; at least 10 Round Lot holders; At least of the Exchange Act. 15 U.S.C. 78q–1. 26722–8 cf. NYSE American Section 722.80. Continued
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proposed rule providing an additional and perfect the mechanism of a free and and only two for continued listing.286 In initial listing standard for preferred open market and a national market accordance with these previously Securities consistent with a similar system, and, in general, to protect approved rules, the Exchange believes provision of NASDAQ would expand investors and the public interest, proposed Rule 26205 would ensure fair the possible universe of issuances that consistent with Section 6(b)(5) of the and orderly markets and would would be eligible to list on the Exchange Exchange Act.282 facilitate the provision of sufficient to include preferred Securities. The The Exchange’s proposed Rules liquidity for Securities. Exchange believes that such a rule provide additional flexibility for listed The Exchange also proposes a number would help remove impediments to and companies in choosing how liquidity of other non-substantive changes from perfect the mechanism of a free and would be provided in their listings by the baseline NYSE American listing open market and a national market allowing listed companies to meet either rules, such as to eliminate references to system, consistent with Section 6(b)(5) the DMM Requirement or Active Market the concept of a ‘‘specialist,’’ since 287 of the Exchange Act by giving issuers an Maker Requirement for initial listing BSTX will not have a specialist, or additional means by which it could list and continued trading.283 Pursuant to references to certificated equities, since a different type of security (i.e., a Securities will be uncertificated proposed Rule 26205, a company may 288 preferred Security) and investors the choose to be assigned a DMM by the equities. As another example, NYSE opportunity to trade in such preferred Exchange or to select its own DMM.284 American Section 623 requires that 279 Securities. Further, consistent with Alternatively, a company may elect, or three copies of certain press releases be the public interest, rules that provide the Exchange may determine, that, in sent to the exchange, while the Exchange proposes only that a single more opportunity for listings may lieu of a DMM, a minimum of three (3) copy of such press release be shared promote competition among listing market makers would be assigned to the with the Exchange.289 In addition, the exchanges and capital formation for Security at initial listing; such Exchange proposes to adopt Rule 26720 issuers. requirement may be reduced to two (2) With respect to the definitions in in a manner that is substantially similar market makers following the initial proposed Rule 26000, these are to NYSE American Section 720, but listing, consistent with proposed Rule designed to facilitate understanding of proposes to modify the internal citations 26106. The Exchange believes that such the BSTX Non-ETP Listing Rules by to ensure consistency with its proposed additional flexibility would promote the market participants. The Exchange Rulebook.290 In its proposed Rules, the removal of impediments to and believes that allowing market perfection of the mechanism of a free participants to better understand and 286 See e.g., IEX Rule 14.206. interpret the BSTX Non-ETP Listing and open market and a national market 287 See e.g., NYSE American Section 513(f), Rules removes impediments to and system, consistent with Section 6(b)(5) noting that open orders to buy and open orders to 285 sell on the books of a specialist on an ex rights date perfects the mechanism of a free and of the Exchange Act. The Commission has previously approved are reduced by the cash value of the rights. open market and a national market Proposed Rule 26340(f) deletes this provision system, and may also foster cooperation exchange rules providing for three because BSTX will not have specialists. Similarly, and coordination with persons engaged market makers to be assigned to a because BSTX will not have specialists, the particular security upon initial listing Exchange is not proposing to adopt a parallel rule in regulating, clearing, settling, to NYSE American Section 516, which specifies processing information with respect to, that certain types of orders are to be reduced by a and facilitating transactions in 282 15 U.S.C. 78f(b)(5). specialist when a security is quoted ex-dividend, 283 See proposed Rule 26205. BSTX-listed ex-distribution or ex-rights are set forth in NYSE securities, consistent with Section Securities must meet the criteria specified in American Rule 132. 280 6(b)(5) of the Exchange Act. proposed Rule 26106, which provides that unless 288 See e.g., NYSE American Section 117 The Exchange also proposes certain otherwise provided, all Securities listed pursuant to including a clause relating to paired securities for enhancements to the notice the BSTX Listing Standards must meet one of the which ‘‘the stock certificates of which are printed requirements for listed companies to following requirements: (1) The DMM Requirement back-to-back on a single certificate’’). Similarly, the whereby a DMM must be assigned to a given Exchange has proposed to replace certain references communicate to BSTX related to record Security; or (2) the Active Market Maker to the ‘‘Office of General Counsel’’ contained in dates and defaults.281 The Exchange Requirement which states that (i) for initial certain NYSE American Listing Rule (see e.g., believes that these additional disclosure inclusion the Security must have at least three Section 1205) with references to the Exchange’s and communication obligations can registered and active Market Makers, and (ii) for ‘‘Legal Department’’ to accommodate differences in continued listing, a Security must have at least two BSTX’s organizational structure. See proposed Rule help BSTX in monitoring for listed registered and active Market Makers, one of which 27204. As another example, proposed Rule 27205 company compliance with applicable may be a Market Maker entering a stabilizing bid. refers to the Exchange’s ‘‘Hearing Committee’’ as rules and regulations; such additional 284 Exchange personnel responsible for managing defined in Section 6.08 of the Exchange’s By-Laws disclosure obligations are designed to the listing and onboarding process would be to similarly accommodate organizational responsible for determining to which DMM a differences between the Exchange and NYSE prevent fraudulent and manipulative Security would be assigned. As provided in American. acts and practices, to promote just and proposed Rule 26205, the Exchange makes every 289 See proposed Rule 26623. equitable principles of trade, to foster effort to see that each Security is allocated in the 290 Specifically, proposed Rule 26720 would cooperation and coordination with best interests of the company and its shareholders, provide that participants must comply with Rules persons engaged in regulating, clearing, as well as that of the public and the Exchange. 26720 through 26725 and BSTX’s Rule 22020 Similarly, the Exchange anticipates that these same (Forwarding of Proxy and Other Issuer-Related settling, processing information with personnel would be responsible for answering Materials; Proxy Voting). NYSE American Section respect to, and facilitating transactions questions relating to the Exchange’s listing rules 726, upon which proposed Rule 26720 is based, in securities, to remove impediments to pursuant to proposed Rule 26994 (New Policies). includes cross-references to NYSE American’s The Exchange notes that certain provisions in the corresponding rules to proposed Rules 26720 NYSE American Listing Manual contemplate a through 26725, and also includes cross-references 200,000 Publicly Held Securities; and Market Value ‘‘Listing Qualifications Analyst’’ that would to NYSE American Rules 578 through 585, for of Publicly Held Securities of at least $3.5 million. perform a number of these functions. The Exchange which the Exchange is not proposing corresponding 279 15 U.S.C. 78f(b)(5). is not proposing to adopt provisions that rules. These NYSE American rules for which the 280 Id. specifically contemplate a ‘‘Listing Qualifications Exchange is not proposing to adopt a parallel rule 281 See Proposed Rule 26502, which requires, Analyst,’’ but expects to have personnel that will relate to certain requirements specific to proxy among other things, a listing company to give the perform the same basic functions, such as advising voting (e.g., requiring that a member state the actual Exchange at least ten days’ notice in advance of a issuers and prospective issuers with respect to number of shares for which a proxy is given—NYSE record date established for any other purpose, relevant rules related to listing. American Rule 578) or, in some cases, relate to including meetings of shareholders. 285 15 U.S.C. 78f(b)(5). certificated securities (e.g., NYSE American Rule
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Exchange has not included certain form BSTX.295 Similarly, the Exchange is not public interest, consistent with Section letters related to proxy rules that are proposing at this time to support debt 6(b)(5) of the Exchange Act.301 included in the NYSE American securities (other than those that may be The Exchange proposes to adopt rules; 291 instead, these forms will be ETPs), so the Exchange has not corporate governance listing standards included in the BSTX Listing proposed to adopt certain provisions as its Rule 26800 Series that are Supplement.292 The Exchange is not from the NYSE American Listing substantially similar to the corporate proposing to adopt provisions relating Manual related to bonds/debt governance listing standards set forth in to future priced securities at this securities 296 or the trading of units.297 Part 8 of the NYSE American Listing time.293 In addition, the Exchange is not The Exchange believes that the Manual. However, it includes certain proposing to allow for listing of foreign departures from the NYSE American clarifications, most notably that certain companies, other than Canadian rules upon which the proposed Rules proposed provisions are not intended to companies,294 or to allow for issuers to are based, as described above, are non- restrict the number of terms that a transfer their existing securities to substantive (e.g., by not including director may serve 302 and that, if a provisions relating to instruments that limited partnership is managed by a 579), which would be inapplicable to the Exchange will not trade on the Exchange), would general partner rather than a board of since it proposes to only list uncertificated apply to all issuers in the same manner directors, the audit committee securities. The Exchange believes that it does not and are therefore not designed to permit need to propose to adopt parallel rules requirements applicable to the listed corresponding to NYSE American Rules 578–585 at unfair discrimination, consistent with entity should be satisfied by the general 298 this time and notes that other listing exchanges do Section 6(b)(5) of the Exchange Act. partner.303 The Exchange also notes not appear have corresponding versions of these The Exchange proposes in Rule 26507 that, unlike the current NYSE American NYSE American Rules. See e.g., Cboe BZX Rules. to prohibit the issuance of fractional rules upon which the proposed Rules The Exchange believes that proposed Rule 26720 Securities and to provide that cash must and the Exchange’s other proposed Rules governing are based, the proposed Rules on proxies, including those referenced in proposed be paid in lieu of any distribution or corporate governance do not include Rule 26720, are sufficient to govern BSTX part of a distribution that might result provisions on asset-backed securities 299 Participants’ obligations with respect to proxies. in fractional interests in Securities. and foreign issues (other than those 291 The forms found in NYSE American Section The Exchange believes that disallowing from Canada), since the Exchange does 722.20 and 722.40 would be included in the BSTX fractional shares reduces complexity. By Listing Supplement. not proposed to allow for such foreign 292 The BSTX Listing Supplement would contain extension, the requirement to provide issuers to list on BSTX at this time. samples of letters containing the information and cash in lieu of fractional shares The Exchange proposes to adopt instructions required pursuant to the proxy rules to simplifies the process related to share additional listing rules as its Rule 26900 be given to clients in the circumstances indicated transfer and tracking of share in the appropriate heading. These are intended to Series that are substantially similar to serve as examples and not as prescribed forms. ownership. The Exchange believes that the corporate governance listing Participants would be permitted to adapt the form this simplification promotes just and standards set forth in Part 9 of the NYSE of these letters for their own purposes provided all equitable principles of trade, fosters of the required information and instructions are American Listing Manual. The only cooperation and coordination with significant difference from the baseline clearly enumerated in letters to clients. Pursuant to persons engaged in regulating, clearing, proposed Rule 26212, the BSTX Listing Supplement NYSE American rules is that the would also include a sample application for settling, processing information with proposed BSTX Rules do not include original listing, which the Exchange has submitted respect to, and facilitating transactions as Exhibit 3G. In addition, proposed Rule 26350 provisions related to certificated in securities, removes impediments to securities, since Securities listed on states that the BSTX Listing Supplement will and perfect the mechanism of a free and include a sample cancellation notice; the Exchange BSTX will be uncertificated. open market and a national market expects such notice to be substantially in the same The Exchange proposes to adopt system, and, in general, protects form as NYSE American’s sample notice in NYSE suspension and delisting rules as its American Section 350. Other examples of items that investors and the public interest, Rule 27000 Series that are substantially would appear in the BSTX Listing Supplement consistent with Section 6(b)(5) of the include certain certifications to be completed by the 300 similar to the corporate governance CEO of listed companies pursuant to proposed Rule Exchange Act. Proposed BSTX Rule 26130 (Original listing standards set forth in Parts 10, 26810(a) and (c), and forms of letters to be sent to 11, and 12 of the NYSE American clients requesting voting instructions and other Listing Applications) would require letters relating to proxy votes pursuant to proposed listing applicants to furnish a legal Listing Manual. The proposed rules do IM–26722–2 and IM–26722–4. The Exchange opinion that the applicant’s Security is not include concepts from the baseline expects that these proposed materials in the BSTX a security under applicable United NYSE American rules regarding foreign, Listing Supplement would be substantially similar fixed income securities, or other non- to the corresponding versions of such samples used States securities laws. Such a by NYSE American. The purpose of putting these requirement provides assurance to the equity securities because the Exchange sample letters and other information into the BSTX Exchange that Security trading relates to is not proposing to allow for listing of Listing Supplement rather than directly in the rules 304 appropriate asset classes. The Exchange such securities at this time. is to improve the readability of the Rules. The Exchange believes that the 293 See e.g., NYSE American Section 101, believes that this Rule promotes just and Commentary .02. The Exchange is also not equitable principles of trade and, in proposals in the Rule 26800 to Rule proposing to adopt a parallel provision to NYSE general, protects investors and the 27000 Series, which are based on the American Section 950 (Explanation of Difference rules of NYSE American with the between Listed and Unlisted Trading Privileges) 295 differences explained above, are because the Exchange believes that such provision Consequently, the Exchange does not propose is not necessary and contains extraneous historical to adopt a parallel provision to NYSE American details that are not particularly relevant to the Section 113 at this time. 301 Id. trading of Securities. The Exchange notes that 296 See e.g., NYSE American Sections 1003(b)(iv) 302 See proposed Rule 26802(d). numerous other listing exchanges do not have a and (e). 303 See proposed Rule 26801(b). 297 similar provision to NYSE American Section 950. See e.g., NYSE American Sections 106(f), 304 As with all sections of the proposed rules, See e.g., IEX Listing Rules. 401(i), and 1003(g). references to ‘‘securities’’ have been changed to 294 See proposed Rule 26109. Because the 298 15 U.S.C. 78f(b)(5). ‘‘Securities’’ where appropriate and, in the Rule Exchange does not propose to allow foreign issuers 299 The Exchange also proposes certain 27000 Series, certain references have been of Securities, it does not propose to adopt a parallel conforming changes in Rule 26503 (Form of Notice) conformed from the baseline NYSE American provision to NYSE American Section 110 and other to reiterate that fractional interests in Securities are provisions to account for the differences in similar provisions relating to foreign issuers—e.g., not permitted by the Exchange. governance structure and naming conventions of NYSE American Section 801(f). 300 15 U.S.C. 78f(b)(5). BSTX.
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designed to foster cooperation and • Proposed Rule 28005 (Managed and traded. This adds competition to coordination with persons engaged in Fund Shares) is based on NYSE Arca the marketplace for the listing of ETPs, facilitating transactions in securities, Rule 8.600–E providing greater choice for issuers of remove impediments to and perfect the • Proposed Rule 28006 (Active Proxy ETPs and an additional trading venue mechanism of a free and open market Portfolio Shares) is based on NYSE Arca on which market participants can trade and a national market system, and, in Rule 8.601–E such products. As noted, the proposed general to protect investors and the • Proposed Rule 28007 (Managed Rule 28000 Series is substantially public interest. Further, the differences Portfolio Shares) is based on NYSE Arca similar to the rules of NYSE Arca in the proposals compared to the Rule 8.900–E relating to ETPs, with only non- analogous NYSE American provisions For each Rule in the 28000 Series, the substantive differences, which appropriately reflect the differences Exchange proposes provisions that are differences appropriately reflect the between the two exchanges. The substantially similar to provisions in the differences between the two exchanges Exchange believes that ensuring that its NYSE Arca rulebook, with adjustments (e.g., internal cross-references within systems are appropriately described in made to ensure appropriate reference to each rule book or excluding provisions the BSTX Rules facilitates market concepts in other parts of the BSTX related to products that the Exchange participants’ review of such Rules, Rulebook. For example, in cases where will not support). which serves to remove impediments to the precedent NYSE Arca rule referred Fees (Rule 29000 Series) and perfect the mechanism of a free and to a specific provision regarding open market and a national market delisting procedures, the Exchange has The Exchange proposes to set forth as system by ensuring that market modified the proposed Rules to its Rule 29000 Series (Fees) the participants can easily navigate, reference to the proposed Rule 27000 Exchange’s authority to prescribe understand and comply with the Series, which set forth the Exchange’s reasonable dues, fees, assessments or Exchange’s rulebook. Therefore, the proposed Rules governing suspension other charges as it may deem Exchange believes its proposals are and delisting.306 As another example, appropriate. As provided in proposed consistent with Section 6(b)(5) of the the proposed definition of ‘‘ETP Rule 29000 (Authority to Prescribe Exchange Act.305 Holder,’’ which closely parallels the Dues, Fees, Assessments and Other same definition in the NYSE Arca Charges), these fees may include Trading and Listing Rules for Exchange- Rulebook, but is located in a different membership dues, transaction fees, Trade Products (Rule 28000 Series) place in the proposed BSTX Rulebook communication and technology fees, The Exchange proposes as the Rule as compared to the NYSE Arca regulatory fees, and other fees, which 28000 Series rules related to trading and rulebook.307 In addition, certain will be equitably allocated among BSTX listing ETPs. These proposed Rules products or concepts that are supported Participants, issuers, and other persons allow for an array of different types of by NYSE Arca but are not supported by using the Exchange’s facilities.309 ETPs to be traded and listed on the the Exchange have not been included in Proposed Rule 29010 (Regulatory Exchange and would provide the proposal. For example, the Exchange Revenues) generally provides that any individuals and institutions with notes that the NYSE Arca rulebook revenues received by the Exchange from diverse range of products in which to provides for trading of a Nasdaq–100 fees derived from its regulatory function invest. The proposed Rules would set Index product, Currency Trust Shares, or regulatory fines will not be used for forth requirements and initial as well as and Commodity Index Trust Shares,308 non-regulatory purposes or distributed continued listing standards for a variety whereas the Exchange will not support to the stockholder, but rather, shall be of ETPs noted in the bulleted list below. trading in these specific ETPs and applied to fund the legal and regulatory The proposed Rules have been adapted therefore has not included provisions operations of the Exchange (including from, and are substantially similar to, relating to the listing and trading of surveillance and enforcement activities). rules found in the NYSE Arca Inc. such products in its proposal. The The Exchange believes that the (‘‘NYSE Arca’’) rulebook. Below is a list discussion below describes other proposed Rule 29000 Series (Fees) is of the proposed Rules in the 28000 notable variations from the NYSE Arca consistent with Sections 6(b)(5) of the Series and the NYSE Arca rules on rules set forth in the proposed Rule Exchange Act because these proposed which it is based: Series 28000. rules are designed to protect investors • Proposed Rule 28000 (Investment The Exchange believes that the and the public interest by setting forth Company Units) is based on NYSE Arca proposals in the Rule 28000 Series help the Exchange’s authority to assess fees Rule 5.2–E(j)(3) remove impediments to and perfect the on BSTX Participants, which would be • Proposed Rule 28001 (Equity Index- mechanism of a free and open market used to operate the BSTX System and Linked Securities, Commodity-Linked and a national market system, and, in surveil BSTX for compliance with Securities, Currency-Linked Securities, general promote the protecting of applicable laws and rules. The Fixed Income Index-Linked Securities, investors and the public interest Exchange believes that the proposed Futures-Linked Securities and because they will facilitate an additional Rule 29000 Series (Fees) is also Multifactor Index-Linked Securities) is exchange on which ETPs can be listed consistent with Sections 6(b)(3) of the based on NYSE Arca Rule 5.2–E(j)(6) Exchange Act 310 because the proposed • Proposed Rule 28002 (Exchange- 306 As another example, the concept of ‘‘Core Rules specify that all fees assessed by Traded Fund Shares) is based on NYSE Trading Hours’’ in the NYSE Arca Rulebook (as the Exchange shall be equitably Arca Rule 5.2–E(j)(8) defined therein) has no analog in the BSTX allocated among BSTX Participants, • Rulebook. The BSTX Rulebook only allows for Proposed Rule 28003 (Trust Issued Regular Trading Hours and thus the proposal issuers and other persons using the Receipts) is based on NYSE Arca Rule references the concept of Regular Trading Hours. 8.200–E 307 See proposed IM–28000–1g. In the NYSE Arca 309 Proposed Rule 29000 further provides • Proposed Rule 28004 (Commodity- rule book, the comparable definition is set forth in authority for the Exchange to charge BSTX Based Trust Shares) is based on NYSE NYSE Arca Rulebook Rule 1. Participants a regulatory transaction fee pursuant to 308 Specifically, Section 2 of Rule 8–E in the Section 31 of the Exchange Act (15 U.S.C. 78ee) and Arca Rule 8.201–E NYSE Arca rulebook allows for trading of a that the Exchange will set forth fees pursuant to Nasdaq–100 Index product, Currency Trust Shares, publicly available schedule of fees. 305 15 U.S.C. 78f(b)(5). and Commodity Index Trust Shares. 310 15 U.S.C. 78f(b)(5).
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Exchange’s facilities. The Exchange standard quarterly report of actions Exchange proposes to amend those notes that the proposed Rule 29000 taken on minor rule violations under the Exchange Rules that would apply to Series is substantially similar to the MRVP. The quarterly report includes: BSTX Participants, but that currently existing rules of another exchange.311 The Exchange’s internal file number for only contemplate trading in options. The Exchange intends to submit a the case, the name of the individual Therefore, the Exchange is seeking to proposed rule change to the and/or organization, the nature of the amend the following Exchange Rules, Commission setting forth the proposed violation, the specific rule provision each of which is set forth in Exhibit 5B fees relating to trading on BSTX in violated, the sanction imposed, the submitted with the proposal: advance of the launch of BSTX. number of times the rule violation has • Rule 100(a) (Definitions) ‘‘Options occurred, and the date of disposition. Participant’’ or ‘‘Participant’’: The Minor Rule Violation Plan The Exchange’s MRVP, as proposed to Exchange proposes to change the The Exchange’s disciplinary rules, be amended, is consistent with Sections definition of ‘‘Options Participant or including Exchange Rules applicable to 6(b)(1), 6(b)(5) and 6(b)(6) of the Participant’’ to ‘‘Participant’’ to reflect ‘‘minor rule violations,’’ are set forth in Exchange Act,315 which require, in part, Options Participants and BSTX the Rule 12000 Series of the Exchange’s that an exchange have the capacity to Participants and to amend the definition current Rules. Such disciplinary rules enforce compliance with, and provide as follows: ‘‘The term ‘Participant’ would apply to BSTX Participants and appropriate discipline for, violations of means a firm, or organization that is their associated persons pursuant to the rules of the Commission and of the registered with the Exchange pursuant proposed Rule 24000. The Exchange’s exchange. In addition, because amended to the Rule 2000 Series for purposes of Minor Rule Violation Plan (‘‘MRVP’’) Rule 12140 will offer procedural rights participating in trading on a facility of specifies those uncontested minor rule to a person sanctioned for a violation the Exchange and includes an ‘Options violations with sanctions not exceeding listed in proposed Rule 24010, the Participant’ and ‘BSTX Participant.’ ’’ $2,500 that would not be subject to the Exchange will provide a fair procedure • Rule 100(a) (Definitions) ‘‘Options provisions of Rule 19d–1(c)(1) under the for the disciplining of members and Participant’’: The Exchange proposes to Exchange Act 312 requiring that an SRO associated persons, consistent with add a definition of ‘‘Options promptly file notice with the Section 6(b)(7) of the Exchange Act.316 Participant’’ that would be defined as Commission of any final disciplinary This proposal to include the rules follows: ‘‘The term ‘Options Participant’ action taken with respect to any person listed in Rule 24010 in the Exchange’s is a Participant registered with the or organization.313 The Exchange’s MRVP is consistent with the public Exchange for purposes of participating MRVP includes the policies and interest, the protection of investors, or in options trading on the Exchange.’’ 318 procedures set forth in Exchange Rule otherwise in furtherance of the purposes • Rule 2020(g)(2) (Participant 12140 (Imposition of Fines for Minor of the Exchange Act, as required by Rule Eligibility and Registration): The 317 Violations). 19d–1(c)(2) under the Exchange Act, Exchange proposes to delete subsection The Exchange proposes to amend its because it should strengthen the (g)(2) and replace it with the following: MRVP and Rule 12140 to include Exchange’s ability to carry out its ‘‘(2) Persons associated with a proposed Rule 24010 (Penalty for Minor oversight and enforcement Participant whose functions are related Rule Violations). The Rules included in responsibilities as an SRO in cases solely and exclusively to transactions in proposed Rule 24010 as appropriate for where full disciplinary proceedings are municipal securities; (3) persons disposition under the Exchange’s MRVP unsuitable in view of the minor nature associated with a Participant whose are: (a) Rule 20000 (Maintenance, of the particular violation. In requesting functions are related solely and Retention and Furnishing of Records); the proposed change to the MRVP, the exclusively to transactions in (b) Rule 25070 (Audit Trail); (c) Rule Exchange in no way minimizes the commodities; (4) persons associated 25210(a)(1) (Two-Sided Quotation importance of compliance with with a Participant whose functions are Obligations of BSTX Market Makers); Exchange Rules and all other rules related solely and exclusively to and Rule 25120 (Short Sales). The rules subject to the imposition of fines under transactions in securities futures, included in proposed Rule 12140 are the MRVP. However, the MRVP provided that any such person is the same as the rules included in the provides a reasonable means of appropriately registered with a MRVPs of other exchanges.314 Upon addressing rule violations that do not registered futures association; and (5) implementation of this proposal, the rise to the level of requiring formal persons associated with a Participant Exchange will include the enumerated disciplinary proceedings, while who are restricted from accessing the trading rule violations in the Exchange’s providing greater flexibility in handling Exchange and that do not engage in the certain violations. The Exchange will securities business of the Participant 311 See Cboe BZX Rules 15.1 and 15.2. continue to conduct surveillance with relating to activity that occurs on the 312 17 CFR 240.19d–1(c)(1). due diligence and make a determination Exchange.’’ 319 313 The Commission adopted amendments to based on its findings, on a case-by-case • Rule 2060 (Revocation of paragraph (c) of Rule 19d–1 to allow SROs to basis, whether a fine of more or less submit for Commission approval plans for the Participant Status or Association with a abbreviated reporting of minor disciplinary than the recommended amount is Participant): The Exchange proposes to infractions. See Exchange Act Release No. 21013 appropriate for a violation under the amend Rule 2060 to refer to ‘‘securities (June 1, 1984), 49 FR 23828 (June 8, 1984). Any MRVP or whether a violation requires a disciplinary action taken by an SRO against any formal disciplinary action. person for violation of a rule of the SRO which has 318 In addition, as a result of these new defined been designated as a minor rule violation pursuant Amendments to Existing BOX Rules terms, the Exchange proposes to renumber to such a plan filed with and declared effective by definitions set forth in Rule 100(a) to keep the the Commission will not be considered ‘‘final’’ for Due to the new BSTX trading facility definitions in alphabetical order. purposes of Section 19(d)(1) of the Exchange Act if and the introduction of trading in 319 In addition to revising Rule 2020(g)(2) to the sanction imposed consists of a fine not Securities= [sic] on the Exchange, the broaden it to include securities activities beyond exceeding $2,500 and the sanctioned person has not just options trading, the Exchange proposes to add sought an adjudication, including a hearing, or greater specificity to define persons that are exempt otherwise exhausted his administrative remedies. 315 15 U.S.C. 78f(b)(1), 78f(b)(5) and 78f(b)(6). from registration, consistent with the approach 314 See e.g., IEX Rule 9.218 and Cboe BZX Rule 316 15 U.S.C. 78f(b)(7). adopted by other exchanges. See e.g., IEX Rule 8.15.01. 317 17 CFR 240.19d–1(c)(2). 2.160(m).
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transactions’’ rather than ‘‘options Rules and penalties relating to trading becoming a BSTX Participant and for securities transactions.’’ on BSTX that are set forth in Rule 24010 issuers to list their Securities. These • Rule 3180(a) (Mandatory Systems (Penalty for Minor Rule Violations).’’ forms have been submitted with the Testing): The Exchange proposes to The Exchange believes that the proposal as Exhibits 3A–3L. Each are amend subsection (a)(1) of Rule 3180 to proposed amendments to the definitions described below. also include BSTX Participants, in set forth in Rule 100 are consistent with addition to the categories of Market Section 6(b)(5) of the Exchange Act 320 BSTX Participant Application Makers and OFPs. because they protect investors and the Pursuant to proposed Rule 18000(b), • Rule 7130(a)(2)(v) Execution and public interest by setting forth clear in order to become a BSTX Participant, Price/Time Priority: The Exchange definitions that help BOX and BSTX an applicant must complete a BSTX proposes to update the cross reference Participants understand and apply Participant Application, which has been to Rule 100(a)(58) to refer to Rule Exchange Rules. Without defining terms submitted with the proposal as Exhibit 100(a)(59), which defines the term used in the Exchange Rules clearly, 3A. The proposed BSTX Participant ‘‘Request for Quote’’ or ‘‘RFQ’’ under market participants could be confused Application requires the applicant to the Rules after the proposed as to the application of certain rules, provide certain basic information such renumbering. which could cause harm to investors. as identifying the applicants name and • Rule 7150(a)(2) (Price Improvement The Exchange believes that the contact information, Designated Period): The Exchange proposes to proposed amendments to the other Examining Authority, organizational amend Rule 7150(a)(2) to update the Exchange Rules detailed above are structure, and Central Registration cross reference to the definition of a consistent with Section 6(b)(5) of the Depository (‘‘CRD’’) number. The BSTX 321 Professional in Rule 100(a)(51) to Exchange Act because the proposed Participant Application also requires instead refer to Rule 100(a)(52), which rule change is designed to foster applicants to provide additional is where that term would be defined in cooperation and coordination with information including certain beneficial the Rules after the proposed persons engaged in facilitating ownership information, the applicant’s renumbering. transactions in securities, remove • current Form BD, an organization chart, Rule 7230 (Limitation of Liability): impediments to and perfect the a description of how the applicant The Exchange proposes to amend the mechanism of a free and open market receives orders from customers, how it references in Rule 7230 to ‘‘Options and a national market system, and, in will send orders to BSTX, and a copy of Participants’’ to simply ‘‘Participants.’’ general to protect investors and the written supervisory procedures and • Rule 7245(a)(4) (Complex Order public interest. The Exchange believes information barrier procedures. Price Improve Period): The Exchange that the proposed rule change would In addition, the BSTX Participant proposes to update the cross reference remove impediments to and perfect the Application allows applicants to to Rule 100(a)(51) to refer to Rule mechanism of a free and open market indicate whether they are applying to be 100(a)(52), which defines the term and a national market system by a BSTX Market Maker or a Designated ‘‘Professional’’ after the proposed ensuring that market participants can Market Maker. Applicants wishing to renumbering. easily navigate, understand and comply become a BSTX Market Maker or • IM–8050–3: The Exchange proposes with the Exchange’s rulebook. The Designated Market Maker must provide to update the cross reference to Rule Exchange believes that the proposed certain additional information including 100(a)(56) to refer to Rule 100(a)(57), rule change enables the Exchange to a list of each of the applicant’s trading which defines the term ‘‘quote’’ or continue to enforce the Exchange’s representatives (including a copy of ‘‘quotation’’ after the proposed rules. The Exchange notes that none of each representative’s Form U4), a copy renumbering. the proposed changes to the current of the applicant’s written supervisory • Rule 11010(a) ‘‘Investigation Exchange rulebook would materially procedures relating to market making, a Following Suspension’’: The Exchange alter the application of any of those description of the source and amount of proposes to amend subsection (a) of Rules, other than by extending them to the applicant’s capital, and information Rule 11010 to remove the reference to apply to BSTX Participants and trading regarding the applicant’s other business ‘‘in BOX options contracts’’ and to on the BSTX System. As such, the activities and information barrier modify the word ‘‘position’’ with the proposed amendments would foster procedures. word ‘‘security’’ as follows: ‘‘. . . the cooperation and coordination with amount owing to each and a complete persons engaged in facilitating BSTX Participant Agreement list of each open long and short security transactions in securities and would Pursuant to Exchange Rule 18000(b), position maintained by the Participant remove impediments to and perfect the to transact business on BSTX, and each of his or its Customers.’’ mechanism of a free and open market • prospective BSTX Participants must Rule 11030 (Failure to Obtain and a national exchange system. complete a BSTX Participant Reinstatement): The Exchange proposes Further, the Exchange believes that, by Agreement. The BSTX Participant to amend Rule 11030 to replace the ensuring the rulebook accurately reflects Agreement has been submitted with the reference to ‘‘Options Participant’’ to the intention of the Exchange’s rules, proposal as Exhibit 3B. The BSTX simply ‘‘Participant.’’ the proposed rule change reduces • Participant Agreement provides that a Rule 12140 (Imposition of Fines for potential investor or market participant BSTX Participant must agree with the Minor Rule Violations): The Exchange confusion. proposes to amend Rule 12140 to Exchange as follows: replace references to ‘‘Options Forms To Be Used in Connection With 1. Participant agrees to abide by the Participant’’ to simply ‘‘Participant.’’ In BSTX Rules of the Exchange and applicable addition, the Exchange proposes to add In connection with the operation of bylaws, as amended from time to time, paragraph (f) to Rule 12140, to BSTX, the Exchange proposes to use a and all circulars, notices, incorporate the aforementioned series of new forms to facilitate interpretations, directives and/or modifications to the Exchange’s MRVP. decisions adopted by the Exchange. New paragraph (f) of Rule 12140 would 320 15 U.S.C. 78f(b)(5). 2. Participant acknowledges that provide: ‘‘(f) Transactions on BSTX. 321 Id. BSTX Participant and its associated
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persons are subject to the oversight and Selection form to notify BSTX of the Additional Listing Application jurisdiction of the Exchange. selection. The form must be signed by (submitted with the proposal as Exhibit 3. Participant authorizes the Exchange a duly authorized officer as specified in 3H) to apply for the listing of Securities to make available to any governmental proposed Rule 25230(b)(1). on BSTX.323 The BSTX Original Listing agency or SRO any information it may Application provides information Clearing Authorization Forms have concerning the BSTX Participant necessary, and in accordance with or its associated persons, and releases In accordance with proposed Rule Section 12(b) of the Exchange Act,324 for the Exchange from any and all liability 18010, BSTX Participants that are not Exchange regulatory staff to conduct a in furnishing such information. members/participants of a registered due diligence review of a company to 4. Participant acknowledges its clearing agency must clear their determine if it qualifies for listing on the obligation to update any and all transactions through a BSTX Participant Exchange. The BSTX Additional Listing information contained in any part of the that is a member of a registered clearing Application requires certain further BSTX Participant’s application, agency. A BSTX Participant clearing information for an additional listing of including termination of membership through another BSTX Participant Securities. Relevant factors regarding with another SRO. would do so using, as applicable, either the company and securities to be listed These provisions of the BSTX the BSTX Clearing Authorization (non- would determine the type of Participant Agreement and others Market Maker) form (submitted with the information required. The following therein are generally designed to reflect proposal as Exhibit 3E) or the BSTX describes each category and use of the Exchange’s SRO obligations to Participant Clearing Authorization application information: regulate BSTX Participants. (Market Maker) form (submitted with 1. Corporate information regarding the Accordingly, these provisions the proposal as Exhibit 3F). Each form issuer of the security to be listed, contractually bind a BSTX Participant to would be maintained by BSTX and each including company name, address, comply with Exchange rules, form specifies that the BSTX Participant contact information, Central Index Key acknowledge the Exchange’s oversight clearing on behalf of the other BSTX Code (CIK), SEC File Number, state and and jurisdiction, authorize the Exchange Participant accepts financial country of incorporation, date of to disclose information regarding the responsibility for all transactions on incorporation, whether the company is Participant to any governmental agency BSTX that are made by the BSTX a foreign private issuer, website address, or SRO and acknowledge the obligation Participant designated on the form. SIC Code, CUSIP number of the security to update any and all Application being listed and the date of fiscal year contained in the Participant’s BSTX Listing Applications end. This information is required of all application. The Exchange proposes to specify the applicants and is necessary in order for the Exchange’s regulatory staff to collect BSTX User Agreement required forms of listing application, listing agreement and other basic company information for In order to become a BSTX documentation that listing applicants recordkeeping and due diligence Participant, prospective participants and listed companies must execute or purposes, including review of must also execute a BSTX User complete (as applicable) as a information contained in the company’s Agreement pursuant to proposed Rule prerequisite for initial and ongoing SEC filings. 18000(b). The BSTX User Agreement, listing on the Exchange, as applicable 2. For original listing applications submitted with the proposal as Exhibit (collectively, ‘‘listing documentation’’). only, corporate contact information 3C, includes provisions related to the As proposed, the listing forms are including the company’s Chief term of the agreement, compliance with substantially similar to those currently Executive Officer, Chief Financial exchange rules, right and obligations in use by NYSE American LLC, with Officer, Corporate Secretary, General under the agreement, changes to BSTX, certain differences to account for the Counsel and Investor Relations Officer. proprietary rights under the agreement, trading of Securities. All listing This information is required of all initial use of information received under the documentation will be available on the applicants and is necessary in order for relationship, disclaimer of warranty, Exchange’s website (boxoptions.com). the Exchange’s regulatory staff to collect limitation of liability, indemnification, Each of the listing documents form a current company contact information termination and assignment. The duly authorized representative of the for purposes of obtaining any additional information is necessary to outline the company must sign an affirmation that due diligence information to complete a rights and obligations of the prospective the information provided is true and listing qualification review of the Participant and the Exchange under the correct as of the date the form was applicant. terms of the agreement. Both the BSTX signed. In the event that in the future 3. For original listing applications Participant Agreement and BSTX User the Exchange makes any substantive only, offering and security information Agreement will be available on the changes (including changes to the regarding an offering, including the type Exchange’s website (boxoptions.com). rights, duties, or obligations of a listed of offering, a description of the issue, par value, number of Securities company or listing applicant or the BSTX Security Market Designated outstanding or offered, total Securities Exchange, or that would otherwise Market Maker Selection Form unissued, but reserved for issuance, date require a rule filing) to such documents, In accordance with proposed Rule authorized, purpose of Securities to be it will submit a rule filing in accordance 25230(b)(1), BSTX will maintain the issued, number of Securities authorized, with Rule 19b–4.322 BSTX Security Designated Market and information relating to payment of Pursuant to Rule 26130 and 26300 of Maker Selection Form, which has been dividends. This information is required the Exchange Rules, a company must submitted with the proposal as Exhibit of all applicants listing Securities on the file and execute the BSTX Original 3D. The issuer may select its DMM from Listing Application (submitted with the among a pool of DMMs eligible to 323 Pursuant to proposed Exchange Rule 26130, proposal as Exhibit 3G) or the BSTX participate in the process. Within two an applicant seeking the initial listing of its Security must also provide a legal opinion that the business days of the issuer selecting its 322 The Exchange will not submit a rule filing if applicant’s Security is a security under applicable DMM, it will use the BSTX Security the changes made to a document are solely United States securities laws. Market Designated Market Maker typographical or stylistic in nature. 324 15 U.S.C. 78l(b).
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Exchange, and is necessary in order for listing standards for listing on the BSTX 13. For additional listing applications the Exchange’s regulatory staff to collect Security Market, it does not necessarily only, information for a technical basic information about the offering. mean that its application will be original listing, including reverse 4. For original listing applications approved. This information is necessary Security splits and changes in states of only, information regarding the in order for the Exchange’s regulatory incorporation. This information is company’s transfer agent. Transfer agent staff to assess whether an Applicant required of all applicants listing information is required for all Issuer is qualified for listing. additional Securities on the Exchange, applicants. This information is 9. For original listing applications and is necessary in order for the necessary in order for the Exchange’s only, regulatory review information, Exchange’s regulatory staff to collect regulatory staff to collect current contact including a certification that no officer, basic information about the offering. information for such company transfer board member or non-institutional 14. For additional listing applications agent for purposes of obtaining any shareholder with greater than 10% only, information for a forward Security additional due diligence information to ownership of the company has been split or Security dividend, including complete a listing qualification review convicted of a felony or misdemeanor forward Security split ratios and of the applicant. relating to financial issues during the information related to Security 5. For original listing applications past ten years or a detailed description dividends. This information is required only, contact information for the outside of any such matters. This section also of all applicants listing additional counsel with respect to the listing notes that the Exchange will review Securities on the Exchange, and is application, if any. This information is background materials available to it necessary in order to determine the necessary in order for the Exchange’s regarding the aforementioned rights associated with the Securities. regulatory staff to collect applicable individuals as part of the eligibility 15. For additional listing applications contact information for purposes of review process. This regulatory review only, relevant company documents. obtaining any additional due diligence information is necessary in order for the This information is required of all information to complete a listing Exchange’s regulatory staff to assess applicants listing additional Securities qualification review of the applicant whether there are regulatory matters on the Exchange, and is necessary to and assess compliance with Exchange related to the company that render it assess to support the Exchange’s Rule 26130. unqualified for listing. regulatory staff listing qualification 6. For original listing applications 10. For original listing applications review. only, a description of any security only, supporting documentation 16. For additional listing applications preferences. This information is required prior to listing approval only, reconciliation for technical necessary to determine whether the includes a listing agreement, corporate original listing, including Securities Applicant issuer has any existing class governance affirmation, listing issued and outstanding after the of common stock or equity securities application checklist and underwriter’s technical original event, listed reserves entitling the holders to differential letter. This documentation is necessary previously approved for listing, and voting rights, dividend payments, or in order to support the Exchange’s unlisted reserves not yet approved by other preferences. regulatory staff listing qualification the Exchange. This information is 7. For original listing applications review (corporate governance required of all applicants listing only, type of Security listing, including affirmation, listing application checklist additional Securities on the Exchange, the type of transaction (initial public and underwriter’s letter) and to and is necessary to assess to support the offering of a Security, merger, spin-off, effectuate the listed company’s Exchange’s regulatory staff listing follow on offering, reorganization, agreement to the terms of listing (listing qualification review and to obtain all of exchange offer or conversion) and other agreement). the information relevant to the offering. details related to the transaction, 11. For additional listing applications including the name and contact only, transaction details, including the Checklist for Original Listing information for the investment banker/ purpose of the issuance, total Securities, Application financial advisor contacts. This date of board authorization, date of In order to assist issuers seeking to list information is necessary in order for the shareholder authorization and its Securities on BSTX, the Exchange Exchange’s regulatory staff to collect anticipated date of issuance. This has provided a checklist for issuers to information for such company for information is required of all applicants seeking to file an original listing purposes of obtaining any additional listing additional Securities on the application with BSTX. The BSTX due diligence information to complete a Exchange, and is necessary in order for Listing Application Checklist, submitted listing qualification review of the the Exchange’s regulatory staff to collect with the proposal as Exhibit 3I, provides applicant. basic information about the offering. that issuers must provide BSTX with a 8. For original listing applications 12. For additional listing applications listing application, listing agreement, only, exchange requirements for listing only, insider participation and future corporate governance affirmation, consideration. This section notes that to potential issuances, including whether underwriter’s letter (for an initial public be considered for listing, the Applicant any director, officer or principal offering of a Security only) and relevant Issuer must meet the Exchange’s shareholder of the company has a direct SEC filings (e.g., 8–A, 10, 40–F, 20–F). minimum listing requirements, that the or indirect interest in the transaction, Each of the above referenced forms are Exchange has broad discretion regarding and if the transaction potentially fully described herein. The checklist is the listing of any Security and may deny requires the company to issue any necessary to assist issuers and the listing or apply additional or more Securities in the future above the Exchange regulatory staff in assessing stringent criteria based on any event, amount they are currently applying for. the completion of the relevant condition or circumstance that makes This information is required of all documents. the listing of an Applicant Issuer’s applicants listing additional Securities Security inadvisable or unwarranted in on the Exchange, and is necessary in BSTX Security Market Listing the opinion of the Exchange. The order for the Exchange’s regulatory staff Agreement section also notes that even if an to collect basic information about the Pursuant to proposed Exchange Rule Applicant Issuer meets the Exchange’s offering. 26132, to apply for listing on the
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Exchange, a company must execute the trading symbol at the Exchange’s the applicable standards, and specify BSTX Security Market Listing discretion at any time. any applicable phase-ins or exemptions. Agreement (the ‘‘Listing Agreement’’), 7. Company agrees to furnish to the Companies are required to submit a which has been submitted with this Exchange on demand such information BSTX Security Market Corporate proposal as Exhibit 3J. Pursuant to the concerning the Company as the Governance Affirmation upon initial proposed Listing Agreement, a company Exchange may reasonably request. listing on the Exchange and thereafter agrees with the Exchange as follows: 8. Company agrees to pay when due when an event occurs that makes an 1. Company certifies that it will all fees associated with its listing of existing form inaccurate. This BSTX comply with all Exchange rules, Securities on the BSTX Security Market, Security Market Corporate Governance policies, and procedures that apply to in accordance with the Exchange’s Affirmation assists the Exchange listed companies as they are now in Rules. regulatory staff in monitoring listed effect and as they may be amended from 9. Company agrees to file all required company compliance with the corporate time to time, regardless of whether the periodic financial reports with the SEC, governance requirements. Company’s organization documents including annual reports and, where would allow for a different result. applicable, quarterly or semi-annual Sample Underwriter’s Letter 2. Company shall notify the Exchange reports, by the due dates established by In accordance with proposed Rule at least 20 days in advance of any the SEC. 26101, an initial public offering of a change in the form or nature of any The various provisions of the Listing Security must meet certain listing listed Securities or in the rights, Agreement are designed to accomplish requirements. The Exchange seeks to benefits, and privileges of the holders of several objectives. First, clauses 1–3 and require the issuer’s underwriter to such Securities. 6–8 reflect the Exchange’s SRO execute a letter setting forth the details 3. Company understands that the obligations to assure that only listed of the offering, including the name of Exchange may remove its Securities companies that are compliant with the offering and why the offering meets from listing on the BSTX Security applicable Exchange rules may remain the criteria of the BSTX rules. This Market, pursuant to applicable listed. Thus, these provisions information, set forth in the proposed procedures, if it fails to meet one or contractually bind a listed company to Sample Underwriter’s Letter and more requirements of Paragraphs 1 and comply with Exchange rules, provide submitted with this proposal as Exhibit 2 of this agreement. notification of any corporate action or 3L, is necessary to assist the Exchange’s 4. In order to publicize the Company’s other event that will cause the company regulatory staff in assessing the listing on the BSTX Security Market, the to cease to be in compliance with offering’s compliance with BSTX listing Company authorizes the Exchange to Exchange listing requirements, evidence standards for an initial public offering of use the Company’s corporate logos, the company’s understanding that it a Security. website address, trade names, and trade/ may be removed from listing (subject to service marks in order to convey applicable procedures) if it fails to be in Regulation quotation information, transactional compliance or notify the Exchange of In connection with the operation of reporting information, and other any event of noncompliance, furnish the BSTX, the Exchange will leverage many information regarding the Company in Exchange with requested information on of the structures it established to operate connection with the Exchange. In order demand, pay all fees due and file all a national securities exchange in to ensure the accuracy of the required periodic reports with the SEC. compliance with Section 6 of the information, the Company agrees to Clauses four and five contain standard Exchange Act.325 Specifically, the provide the Exchange with the legal representations and agreements Exchange will extend its Regulatory Company’s current corporate logos, from the listed company to the Services Agreement with FINRA to website address, trade names, and trade/ Exchange regarding use of its logo, trade cover BSTX Participants and trading on service marks and with any subsequent names, trade/service markets, and the BSTX System. This Regulatory changes to those logos, trade names and trading symbols as well as potential Services Agreement will govern many marks. The Listing Agreement further legal claims against the Exchange in aspects of the regulation and discipline requires that the Company specify a connection thereto. of BSTX Participants, just as it does for telephone number to which questions BSTX Security Market Company options regulation. The Exchange will regarding logo usage should be directed. Corporate Governance Affirmation perform Security listing regulation, 5. Company indemnifies the Exchange authorize BSTX Participants to trade on and holds it harmless from any third- In accordance with the proposed Rule the BSTX System, and conduct party rights and/or claims arising out of 26800 Series, companies listed on BSTX surveillance of Security trading on the use by the Exchange or, any affiliate or would be required to comply with BSTX System. facility of the Exchange certain corporate governance standards, Section 17(d) of the Exchange Act 326 (‘‘Corporations’’) of the Company’s relating to, for example, audit and the related Exchange Act rules corporate logos, website address, trade committees, director nominations, permit SROs to allocate certain names, trade/service marks, and/or the executive compensation, board regulatory responsibilities to avoid trading symbol used by the Company. composition, and executive sessions. In duplicative oversight and regulation. 6. Company warrants and represents certain circumstances the corporate Under Exchange Act Rule 17d–1,327 the that the trading symbol to be used by governance standards that apply vary SEC designates one SRO to be the the Company does not violate any trade/ depending on the nature of the Designated Examining Authority, or service mark, trade name, or other company. In addition, there are phase- DEA, for each broker-dealer that is a intellectual property right of any third in periods and exemptions available to member of more than one SRO. The party. The Company’s trading symbol is certain types of companies. The DEA is responsible for the financial provided to the Company for the limited proposed BSTX Security Market aspects of that broker-dealer’s regulatory purpose of identifying the Company’s Corporate Governance Affirmation, security in authorized quotation and submitted with this proposal as Exhibit 325 15 U.S.C. 78f. trading systems. The Exchange reserves 3K, enables a company to confirm to the 326 15 U.S.C. 78q(d). the right to change the Company’s Exchange that it is in compliance with 327 17 CFR 240.17d–1.
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oversight. Because Exchange regulatory and self-regulatory conferred by this title matters not Participants, including BSTX organization responsibilities, including related to the purposes of this title or Participants, also must be members of at those applicable to BSTX. Finally, as it the administration of the Exchange. least one other SRO, the Exchange does with options, the Exchange will The Exchange believes that BSTX will would generally not be designated as perform automated surveillance of benefit individual investors, other the DEA for any of its members.328 trading on BSTX for the purpose of market participants, and the equities Rule 17d–2 under the Exchange maintaining a fair and orderly market at market generally. The Exchange Act 329 permits SROs to file with the all times and monitor BSTX to identify proposes to establish BSTX as a facility Commission plans under which the unusual trading patterns and determine of the Exchange that would trade SROs allocate among each other the whether particular trading activity equities in a similar manner to how responsibility to receive regulatory requires further regulatory investigation equities presently trade on other reports from, and examine and enforce by FINRA. exchanges. BSTX would also make compliance with specified provisions of In addition, the Exchange will oversee available to BSTX Participants the BSTX the Exchange Act and rules thereunder the process for determining and Market Data Blockchain, which and SRO rules by, firms that are implementing trade halts, identifying provides certain order and transaction members of more than one SRO and responding to unusual market information with respect to a BSTX (‘‘common members’’). If such a plan is conditions, and administering the Participant’s trading activity on BSTX, declared effective by the Commission, Exchange’s process for identifying and as well as anonymized order and an SRO that is a party to the plan is remediating ‘‘clearly erroneous trades’’ transaction data with respect to all relieved of regulatory responsibility as pursuant to proposed Rule 25110. trading activity occurring on BSTX. The to any common member for whom Exchange believes that the content of responsibility is allocated under the NMS Plans information available on the BSTX plan to another SRO. The Exchange The Exchange intends to join the Market Data Blockchain would plans to join the Plan for the Allocation Order Execution Quality Disclosure generally be similar to TAQ data made of Regulatory Responsibilities Regarding Plan, the Plan to Address Extraordinary available by NYSE today, except that (i) Regulation NMS.330 The Exchange may Market Volatility, the Plan Governing the BSTX Market Data Blockchain choose to join certain Rule 17d–2 the Process of Selecting a Plan would use a private, permissioned agreements such as the agreement Processor, and the applicable plan(s) for network controlled by the Exchange to allocating responsibility for insider consolidation and dissemination of make the market data available to BSTX trading rules.331 market data. The Exchange is already a Participants; (ii) a BSTX Participant For those regulatory responsibilities participant in the NMS plan related to would be able to certain see non- that fall outside the scope of any Rule the Consolidated Audit Trail. Consistent anonymized information about its own 17d–2 agreements that the Exchange with Section 6(b)(5) of the Exchange trading activity on BSTX; 335 and (iii) may join, subject to Commission Act,332 the Exchange believes that the BSTX Market Data Blockchain approval, the Exchange will retain full joining the same set of NMS plans that would include market data only with regulatory responsibility under the all other national securities exchanges respect to trading activity occurring on Exchange Act. However, as noted, the that trade equities must join fosters BSTX, while the Exchange understands Exchange will extend its existing cooperation and coordination with other that TAQ data includes certain trading Regulatory Services Agreement with national securities exchanges and other and quotation data that may occur on FINRA to provide that FINRA personnel market participants engaged in other markets.336 The Exchange believes will operate as agents for the Exchange regulating, clearing, settling, processing that the use of blockchain technology, in performing certain regulatory information with respect to, and through a private permissioned network functions with respect to BSTX. As is facilitating transactions in securities. that operates in manner that is fully the case with the Exchange’s options compatible with the existing regulatory trading platform, the Exchange will 2. Statutory Basis structures for trading, recordkeeping, supervise FINRA and continue to bear The Exchange believes that the and clearance and settlement that ultimate regulatory responsibility for proposed rule change is consistent with market participants are familiar with is BSTX. Consistent with the Exchange’s the provisions of the Exchange Act,333 an appropriate way to introduce existing regulatory structure, the in general and with Section 6(b)(5) of blockchain to the current market Exchange’s Chief Regulatory Officer the Exchange Act,334 in particular, in structure. BSTX Participants would shall have general supervision of the that it is designed to promote just and have not have affirmative obligations to regulatory operations of BSTX, equitable principles of trade, to foster provide information to the blockchain including responsibility for overseeing cooperation and coordination with nor would they be required to access or the surveillance, examination, and persons engaged in regulating, clearing, use it. The data inputs to the BSTX enforcement functions and for settling, processing information with Market Data Blockchain would be administering all regulatory services respect to, and facilitating transactions captured in the ordinary course as BSTX agreements applicable to BSTX. in securities, to remove impediments to Participants’ orders and messages are Similarly, the Exchange’s existing and perfect the mechanism of a free and Regulatory Oversight Committee will be open market and a national market 335 All non-anonymized information would be responsible for overseeing the adequacy system, and, in general, to protect available only to the BSTX Participant who and effectiveness of Exchange’s investors and the public interest; and it provided such information to the Exchange through its trading activity on BSTX. is not designed to permit unfair 336 See e.g., NYSE, Daily TAQ Fact Sheet, (noting 328 See Exchange Rule 2020(a) (requiring that a discrimination between customers, that TAQ data ‘‘provides users access to all trades Participant be a member of another registered issuers, brokers, or dealers, or to and quotes for all issues traded on NYSE, Nasdaq national securities exchange or association). regulate by virtue of any authority and the regional exchanges for a single trading day’’ 329 17 CFR 240.17d–2. and is ‘‘a comprehensive history of daily activity 330 Exchange Act Release No. 85046 (February 4, from NYSE markets and the U.S. Consolidated Tape 2019), 84 FR 2643 (February 7, 2019). 332 15 U.S.C. 78f(b)(5). covering U.S. Equities instruments (CTA and UTP 331 Exchange Act Release No. 84392 (October 10, 333 15 U.S.C. 78a et seq. participating markets’’) https://www.nyse.com/ 2018), 83 FR 52243 (October 16, 2018). 334 15 U.S.C. 78f(b)(5). publicdocs/nyse/data/Daily_TAQ_Fact_Sheet.pdf.
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sent to the Exchange through the FIX available on the BSTX Market Data regular-way and would be presumed to gateway. The BSTX Market Data Blockchain as BSTX Participants, but settle on a T+2 basis just like any other Blockchain, therefore, would be through a different means (i.e., through order submitted by a BSTX Participant optional functionality available to all the proprietary market data feeds rather that does not include a parameter BSTX Participants on equal terms, and than via the BSTX Market Data indicating a preference for faster therefore is not unfairly discriminatory, Blockchain). Because the same settlement. As described in greater consistent with Section 6(b)(5) of the anonymized information would be detail above, however, an Order with a Exchange Act.337 available to non-BSTX Participants T+0 Preference or an Order with a T+1 The Exchange has proposed to make through another means, the Exchange Preference would only result in the BSTX Market Data Blockchain believes that the proposed limitation of executions that would actually settle available only to BSTX Participants access to the BSTX Market Data more quickly than on a T+2 basis if, and rather than other market participants Blockchain is not unfairly only if, all of the conditions in Rule that are not BSTX Participants primarily discriminatory and does not impose a 25060(h) are met and the execution that because the Exchange believes that burden on competition, consistent with is transmitted to NSCC is eligible for BSTX Participants would be the most Sections 6(b)(5) and 6(b)(8) of the T+0 or T+1 settlement under the rules, likely to be interested in potentially Exchange Act.340 policies and procedures of a registered using the BSTX Market Data In addition, because the BSTX Market clearing agency.343 Any such preference Blockchain. The BSTX Market Data Data Blockchain only captures included by a BSTX Participant would Blockchain would consist of information with respect to trading only become operative if the order information that pertains solely to activity on BSTX, it would have no happens to execute against another trading activity on BSTX and not other effect or impact on other exchanges, order from a BSTX Participant that also exchanges. The Exchange believes, promoting consistency with Section includes a parameter indicating a therefore, that most persons interested 6(b)(8) of the Exchange Act, which preference for settlement on a T+0 or in market data relating to trading on prohibits an exchange’s rules from T+1 basis. BSTX would likely become a BSTX imposing a burden on competition not The Exchange believes that the Participant, at which time they would necessary or appropriate in furtherance proposed ability for BSTX Participants have access to the BSTX Market Data of the Exchange Act.341 The entry of an to indicate a preference for shorter Blockchain. The Exchange solicits innovative competitor such as BSTX settlement times as described above is comment from the public as to whether seeking to implement a measured consistent with the Exchange Act and in non-BSTX Participants would be introduction of blockchain technology particular Section 6(b)(5) of the interested in having access to the BSTX in connection with the trading of equity Exchange Act because it would help Market Data Blockchain and the securities may promote competition by remove impediments to and perfect the anticipated uses of the BSTX Market encouraging other market participants to mechanism of a free and open market Data Blockchain by such non-BSTX find ways of using blockchain and is not designed to permit unfair Participants.338 To the extent that non- technology in connection with discrimination between or among BSTX Participants are interested in securities transactions. The proposed market participants.344 Specifically, access to General Market Data (i.e., regulation of BSTX and BSTX allowing for BSTX Participants to anonymized market data) available on Participants, as well as the execution of potentially reduce the settlement time the BSTX Market Data Blockchain, the Securities using a price-time priority for transactions on BSTX pursuant to Exchange would consider providing model and the clearance and settlement the rules, policies and procedures of a access to such persons on an ad hoc of Securities pursuant to the rules, registered clearing agency helps remove basis 339 or may consider amendments policies and procedures of a registered impediments to and perfects a free an to the proposal (or subsequent rule clearing agency will all operate in a open market by allowing greater choice filings) to provide regular access to manner substantially similar to existing for BSTX Participants who may want to General Market Data on the BSTX equities exchanges. In this way, the avail themselves of currently available Market Data Blockchain if there is Exchange believes that BSTX provides a functionality at registered clearing sufficient interest or demand from non- robust regulatory structure that protects agencies. Moreover, the Commission has BSTX Participants. The Exchange notes investors and the public interest while previously noted a number of positive that the anonymized data that would be introducing the use of blockchain effects relating to the liquidity risks and available on the BSTX Market Data technology as an additional feature in costs faced by members in a clearing Blockchain would be the same connection with Securities traded on agency, and the Exchange believes that information that would be available the Exchange. this proposed functionality on BSTX through the Exchange’s proprietary In connection with the clearance and would help realize such positive market data feeds, which any person settlement of Securities pursuant to the effects.345 Proposed Rule 25060(h) is not (i.e., both BSTX Participants and non- rules, policies and procedures of a designed to permit unfair BSTX Participants) would be able to registered clearing agency, the Exchange discrimination between market acquire. Accordingly, under the proposes that BSTX Participants would participants consistent with Section proposal, non-BSTX Participants would be able to include in their orders in 6(b)(5) 346 because the Rule would allow still be able to access the same Securities that are submitted to BSTX all orders that are marketable against anonymized market data information certain parameters to indicate a one another—regardless of the preference for settlement on a same day settlement preference of the BSTX 337 15 U.S.C. 78f(b)(5). (T+0) or next trading day (T+1) basis Participant submitting the order (or 342 338 The Exchange reiterates that non-anonymized when certain conditions are met. Any their customer)—to execute against each market data available on the BSTX Market Data such orders would at the time of order Blockchain would only ever be accessible by the entry represent orders that would be 343 BSTX Participant who provided such market data See proposed Rule 25100(d). through its trading on BSTX. 344 15 U.S.C. 78f(b)(5). 339 For example, the Exchange might provide 340 15 U.S.C. 78f(b)(5) and (8). 345 See supra notes 888–91 and accompanying temporary access to the BSTX Market Data 341 15 U.S.C. 78f(b)(8). text. Blockchain to academics studying equity markets. 342 See proposed Rule 25060(h). 346 15 U.S.C. 78f(b)(5).
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other. A BSTX Participant that would available market data for others to make of the purposes of the Exchange Act.352 like settlement of T+2 could still similar studies, the Exchange can help The Exchange operates in an intensely interact with orders on BSTX that ensure that the suspension of UTP is in competitive global marketplace for indicate a preference for a shorter fact having the intended effect of transaction services. The Exchange settlement cycle and vice-versa. Only improving market quality for Thinly competes for the privilege of providing where two orders that both indicate a Traded Securities and/or determine market services to broker-dealers preference for a shorter settlement cycle what else might be necessary to improve through the Exchange’s service offerings match on BSTX would a shorter market quality, all of which the and associated benefits it is able to settlement cycle be possible. Exchange believes will help further the provide. The Exchange’s ability to The Exchange also proposes to protection of investors and the public compete in this environment is based in suspend unlisted trading privileges for interest. large part on the quality of its trading Securities that qualify as Thinly Traded Similarly, consistent the Exchange systems, the overall quality of its market Securities, which the Exchange also believes that the proposed suspension of and its attractiveness to market believes is consistent with the Exchange UTP for Thinly Traded Securities would participants who evaluate the Exchange Act for the reasons detailed in Part II.H on, among other things, speed, 347 not permit unfair discrimination above. The Exchange proposes to between customers, issuers, brokers or reliability, the likelihood and costs of suspend UTP only for Securities that dealers, because the suspension is for executions, as well as spreads, fairness, qualify as Thinly Traded Securities, the purpose of furthering the regulatory and transparency. which are generally those with an ADV objective of improving market quality The Exchange believes that the of trading of 100,000 or less and a primary areas where the proposed rule for securities that are thinly traded. market capitalization of less than $1 change could potentially result in a Although non-Thinly Traded Securities billion, and where an issuer of a Thinly burden on competition are with regard would not be able to have UTP Traded Security elects to have UTP to the terms on which: (1) Issuers may suspended, this discriminatory suspended. The Exchange believes that list their securities for trading, (2) treatment is not ‘‘unfair’’ given the the proposed suspension of UTP is market participants may access BSTX as substantial public interest, as consistent with Section 6(b)(5) of the a facility of the Exchange and use its demonstrated through the Commission’s Exchange Act 348 because it is designed services including the BSTX Market statements and by market participants at to remove impediments to and perfect Data Blockchain, (3) Security the Roundtable, in improving market the mechanism of a free and open transactions may be cleared and settled, market and a national market system, conditions for thinly traded securities. (4) Security transactions would occur and, in general, to protect investors and The Exchange believes that the OTC (5) Security transactions would the public interest by concentrating proposed suspension of UTP would occur on other exchanges through an displayed liquidity on a single help protect investors and the public extension of UTP to Securities that are exchange, which many, including the interest, consistent with Section 6(b)(5), not Thinly Traded Securities; and (6) Commission, have suggested could by concentrating displayed liquidity on there would be a suspension of UTP for potentially improve the market quality a single venue, thereby providing Thinly Traded Securities. for thinly traded securities. The greater incentives for market makers in Regarding considerations (1) and (2), Exchange believes that concentrating Thinly Traded Securities and in turn and as described in detail in Item 3 displayed liquidity on a single venue making it easier for investors to buy and above, the BSTX Rules are drawn could make market making more sell shares of Thinly Traded Securities. substantially from the existing rules of attractive in Thinly Traded Securities, The Exchange believes that there is a other exchanges that the Commission thereby increasing the overall amount general consensus among members of has already found to be consistent with and depth of liquidity in the market and Commission staff, former the Exchange Act, including regarding in turn making it easier for investors to Commissioners (including former whether they impose any burden on acquire and dispose of positions in Chairman Jay Clayton), the Department competition that is not necessary or Thinly Traded Securities, which of the Treasury, and market appropriate in furtherance of its furthers the protection of investors and participants, as well as empirical purposes. For example, the BSTX Non- the public interest, consistent with evidence, making clear that operating ETP Listing Rules in the 26000 Series Section 6(b)(5) of the Exchange Act.349 company stocks with an ADV of less and Suspension and Delisting Rules in The Exchange would make available than 100,000 shares suffer significant the 27000 Series that affect issuers and order and transaction data relating to liquidity and market quality challenges their ability to list Securities for trading Thinly Traded Securities to regulators, not faced by stocks with greater trading are based substantially on the current academics, and others upon request to volume. It is for this reason, the rules of NYSE American. Additionally, evaluate how the suspension of UTP has Exchange believes, that the Commission the BSTX Trading and Listing of ETPs impacted Thinly Traded Securities. The specifically solicited requests from Rules in the 28000 Series that concern Exchange will also perform its own exchanges for innovative approaches to issuers and their ability to list Securities analysis across a range of market quality improve the market for thinly traded that are exchange-traded products are metrics to evaluate whether the securities, including requests for based substantially on the current rules 351 suspension of UTP has had the intended suspension of UTP. of NYSE Arca. Additionally, the BSTX effect of improving market quality for B. Self-Regulatory Organization’s Rules regarding membership and access Thinly Traded Securities.350 The Statement on Burden on Competition to and use of the facilities of BSTX are Exchange believes that by studying the also substantially based on existing effect of the suspension of UTP for The Exchange does not believe that exchange rules. Specifically, the Thinly Traded Securities and making the proposed rule change will result in relevant BSTX Rules are as follows: any burden on competition that is not participation on BSTX (Rule 18000 347 See supra notes 71–76 and accompanying text. necessary or appropriate in furtherance Series); business conduct for BSTX 348 15 U.S.C. 78f(b)(5). participants (Rule 19000 Series); 349 Id. 351 Commission Statement on Thinly Traded 350 See Part II.H.5. Securities at 56956. 352 15 U.S.C. 78f(b)(8).
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financial and operational rules for BSTX captured by NYSE TAQ data, the BSTX Regarding consideration (3) and the participants (Rule 20000 Series); Market Data Blockchain is pro- manner in which Security transactions supervision (Rule 21000 Series); competitive by offering a similar type of may be cleared and settled, the miscellaneous provisions (Rule 22000 market data and using an innovative Exchange proposes under BSTX Rule Series); trading practices (Rule 23000 technology to do so. For these reasons, 25100(d) to clear and settle transactions Series); discipline and summary the Exchange believes that the BSTX in Securities in accordance with the suspension (Rule 24000 Series); trading Market Data Blockchain would not rules, policies and procedures of a (Rule 25000 Series); market making impose any burden on competition. registered clearing agency. The (Rule 25200 Series); and dues, fees, In addition to not imposing any Exchange believes that this is consistent assessments, and other charges (Rule burden on competition, the Exchange with how other exchange-listed equity 28000 [sic] Series). As described in believes that the BSTX Market Data securities are cleared and settled today. detail in Item 3, these rules are Blockchain would provide two primary Therefore, BSTX’s rules regarding substantially based on analogous rules benefits to BSTX Participants. First, the clearance and settlement of Security of the following exchanges, as Exchange believes that BSTX transactions do not impose any relative applicable: BOX; Investors Exchange Participants that choose to access the burden on competition regarding the LLC; Cboe BZX Exchange, Inc.; The BSTX Market Data Blockchain may find manner in which trades may be cleared Nasdaq Stock Market LLC; and NYSE the information useful as a focused and settled because market participants American LLC. source of market data regarding order would be able to clear and settle Regarding consideration (2) and use of and transaction information on Security transactions in the same the BSTX Market Data Blockchain, the BSTX.353 Second, the Exchange believes manner as they already do in other terms on which BSTX would operate that the BSTX Market Data Blockchain types of NMS stock. The Exchange the BSTX Market Data Blockchain under would help familiarize BSTX believes that this is equally true Rule 17020 would apply equally to all Participants that access the market data regarding the proposed ability of BSTX BSTX Participants and would therefore with the capabilities of blockchain Participants to submit to BSTX orders in not impose any different burden on one technology in a manner that does not Securities in which they include a BSTX Participant compared to another. impose any burden on competition on parameter expressing a preference for As described in detail in Item 3, BSTX them or others. The Commission has T+1 or T+0 settlement, consistent with would issue login credentials to each stated that it is ‘‘mindful of the benefits the rules, policies and procedures of a BSTX Participant through which the of increasing use of new technologies registered clearing agency, as proposed BSTX Participant may choose to access for investors and the markets, and has in the operation of proposed BSTX the BSTX Market Data Blockchain. encouraged experimentation and Rules 25060(h) and 25100(d). As Accessing the BSTX Market Data innovation . . .’’ stating further that described in detail in Item 3 above, Blockchain would not be required. If a ‘‘[i]nformation and communications BSTX believes that NSCC and DTC Participant chooses to do so, it would be technologies are critical to healthy and already have authority under their rules able to see its order and transaction efficient primary and secondary policies and procedures to clear and information on BSTX as well as certain markets.’’ 354 Regarding the judgment of settle certain trades on a T+1 or T+0 anonymized General Market Data from whether the benefits of certain basis and that these clearing agencies do other BSTX Participants. Because the technologies are meritorious, the already clear and settle trades in General Market Data would be Commission has explained its view that accordance with this authority. anonymized, the Exchange believes that ‘‘[t]he market will ultimately prove the The Exchange believes that answering there would not be cause for concern worth of technology—whether the the question of whether a burden on regarding potential trading information benefits to the industry and its investors competition is imposed by the proposal leakage or the ability for a BSTX of developing and using new services to allow BSTX Participants to specify an Participant to reverse engineer another are greater than the associated costs.’’ 355 order parameter indicating a preference BSTX Participant’s trading strategies. Consistent with these statements, the for potential settlement on a T+0 or T+1 Moreover, the BSTX Market Data Exchange believes that promoting use of basis requires an assessment under three Blockchain would not require any the functionality of blockchain general circumstances for order affirmative action on the part of a BSTX technology through the BSTX Market submissions and executions. The first Participant for its information to be Data Blockchain will allow BSTX possible circumstance contemplates recorded to the BSTX Market Data Participants to observe and increase orders that BSTX Participants would Blockchain. Rather the Exchange would their familiarity with the capabilities submit to the BSTX System and that control all aspects of the BSTX Market and potential benefits of blockchain would result in an execution on BSTX. Data Blockchain as a private, technology in a context that operates Here, it would be entirely the choice of permission-based blockchain accessible within the current equity market any BSTX Participant regarding whether to BSTX Participants, and the BSTX infrastructure and thereby advances and to include an order parameter indicating Market Data Blockchain would capture protects the public’s interest in the use a preference for T+0 or T+1 settlement order and execution activity that occurs and development of new data where possible under the settlement in the normal course on BSTX and is processing techniques that may create logic in BSTX Rule 25060(h). If no such made available to BSTX Participants as opportunities for more efficient, additional parameter is included in the an additional resource that they may use effective and safe securities markets.356 order, the order defaults to settle on a in their discretion. The BSTX Market regular-way T+2 basis under the Data Blockchain would functionally 353 For example, a BSTX Participant may wish to settlement logic in proposed BSTX Rule provide market data similarly to what use the market data to review its trading activity on 25060(h). As described in Part II.I of NYSE offers through TAQ data, but BSTX, determine what the market quality was at a Item 3, an order that includes a particular time for a given Security or to evaluate would simply provide it using execution quality on BSTX. parameter indicating a preference for distributed ledger technology. 354 See supra n. 366–38 and accompanying text. potential T+0 settlement will execute Accordingly, although capturing a 355 Id. against any order against which it is different set of market data than 356 See supra n. 39 and accompanying text. marketable with settlement occurring on
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a regular-way settlement cycle of T+2 611,358 the Commission’s ‘‘order optional and any BSTX Participant that except where: (i) The order with the protection rule’’, to be routed to BSTX includes such a parameter would do so parameter for potential settlement on from a third party exchange that extends with an ex-ante understanding of the T+0 executes against another order with UTP to a Security. This required routing settlement logic in BSTX Rule 25060 a parameter for potential settlement on of the order in such a Security would that could cause an executed transaction T+0 (in which case settlement would occur in this setting because the NBBO to settle more quickly than T+2. As occur on the trade date if the transaction existed on BSTX at the time of the entry noted, the Exchange believes that orders is also eligible for settlement on T+0 of the order. Under proposed BSTX Rule in a Security that would be required to under the rules, policies and procedures 25060(h), the order routed to BSTX be routed to BSTX, for example under of a registered clearing agency) or (ii) would execute against any order against the Commission’s Order Protection the order with a parameter for potential which it is marketable without regard to Rule, would also not impose any burden settlement on T+0 executes against an whether a BSTX Participant may have on competition because other exchanges order with a parameter for potential included an optional parameter for do not have rules that similarly settlement on T+1 (in which case potential T+0 or T+1 settlement where contemplate the inclusion of a T+0 or settlement would occur T+1). Similarly, the order executes against another order T+1 parameter, such routed orders as proposed, an order that includes a that also has an optional parameter for would therefore result in T+2 settlement parameter for potential settlement on potential T+0 or T+1 settlement under if executed against any other order on T+1 will execute against any order the settlement logic in BSTX Rule BSTX against which the order is against which it is marketable with 25060(h). In the event the order routed marketable (regardless of whether the settlement occurring on a regular-way to BSTX executes against another order order against which it executes includes settlement date of T+2 except where: (i) on BSTX against which it is marketable, an optional parameter indicating a An order that includes a parameter for that executed transaction in the Security preference for T+0 or T+1 settlement). potential settlement on T+1 executes would be bound for regular way T+2 Therefore, any order routed to BSTX against another such order or an order settlement under BSTX Rule 25060(h) would be able to interact with any other that includes a parameter for potential because the Exchange believes that the order on BSTX against which it is settlement on T+0 (in which case routed order from a third party marketable and would settle on a settlement would occur T+1). In all exchange would not include a regular way T+2 basis just as occurs cases under the settlement logic in parameter for T+0 or T+1 settlement. today regarding any order in an NMS proposed BSTX Rule 25060(h), an order This is because the Exchange believes stock that is routed to a national that does not include an optional that no other exchange currently securities exchange. parameter indicating a preference for includes any such optional parameters The third possible circumstance potential settlement on T+0 or T+1 to be able to indicate a preference for contemplates an order that must be would be a regular way order that potential T+0 or T+1 settlement. This routed under the order protection rule would always receive T+2 settlement if structure means that any non-BSTX from BSTX to a third party exchange it executes against any other order in the Participant that sees a quote in a that extends UTP for a Security because BSTX System. In this way, all of the Security on BSTX would remain able to the third party exchange has the NBBO orders submitted to BSTX would be execute against that quote even if that at that time. The Exchange believes that regular way orders that in and of quote includes an optional parameter this setting is not relevant under the themselves would be presumed to settle indicating a preference for T+0 or T+1 proposed rules of BSTX. Specifically, on T+2. Only where a BSTX Participant settlement where an executed order the Exchange believes that it is not includes the optional parameters to becomes eligible for any such settlement relevant because proposed BSTX Rule express a preference for potential T+0 or on a basis that is faster that T+2 under 25130(d) states that the BSTX System T+1 settlement (where consistent with the settlement logic in BSTX Rule will reject any order or quotation that the rules, policies and procedures of a 25060(h). The Exchange believes that no would lock or cross a protected registered clearing agency) and the order burden on competition results in this quotation of another exchange at the matches against another order seeking a second possible circumstance because time of entry. Therefore, any such shorter settlement time than T+2 could an order routed to BSTX would interact orders that would otherwise be required a transaction settle more quickly than against any order on BSTX against to be routed by BSTX to another T+2 under the settlement logic in which it is marketable. All orders in a exchange will instead be rejected by the proposed BSTX Rule 25060(h) and as Security that are submitted directly to BSTX System. Accordingly, any described immediately above. Thus, BSTX by BSTX Participants or that may specification by a BSTX Participant of a every market participant seeking T+2 be routed to BSTX would be regular way T+0 or T+1 settlement timing parameter settlement for an execution on BSTX orders that when viewed in isolation for an order in this setting could not would be able to interact with any order would be presumed to settle on a T+2 create any burden on competition against which their order is marketable, basis at the time of order entry. It would because the order will be rejected and including those marked for possible T+0 only be upon execution against another would never lead to an execution. or T+1 settlement. In addition, the order that also includes an order In addition to not imposing any possibility of shortened settlement parameter expressing a preference for burden on competition, the Exchange timing would have no impact on the settlement on a T+0 or T+1 basis that believes that allowing BSTX Exchange’s price time priority.357 For the executed transaction (i.e., not the Participants to use faster settlement these reasons, the Exchange believes initial orders) would become eligible for cycles where consistent with the rules, that no burden on competition is settlement faster than T+2 under the policies and procedures of a registered imposed in this first possible settlement logic in Rule 25060(h). The clearing agency would mitigate circumstance. Exchange believes this imposes no settlement risk for transactions in such The second possible circumstance burden on competition on BSTX Securities, consistent with the benefits arises when an order that would be Participants because inclusion of any the Commission has noted in this area. required under Exchange Act Rule T+0 or T+1 parameter would be entirely Namely, in adopting amendments to SEC Rule 15c6–1 in 2017 to shorten the 357 See supra n. 82 and accompanying text. 358 17 CFR 242.611. standard settlement cycle for most
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broker-dealer transactions in securities take place in the same manner as for Act 362 because the suspension of UTP from T+3 to T+2, the Commission stated other NMS stocks. has the potential to help solve market its belief that the shorter settlement With respect to consideration (5) quality problems for Thinly Traded cycle would have positive effects noted above regarding other exchanges Securities that have been publicly regarding the liquidity risks and costs extending UTP to Securities that are not identified by the Commission, faced by members in a clearing agency, Thinly Traded Securities (and for which Commission staff, the U.S. Department like NSCC, that performs CCP services, the issuer elected to suspend UTP), the of Treasury, academics, and a broad and that it would also have positive Exchange does not believe that the spectrum of market participants.363 The effects for other market participants. proposed Rules would impose a burden Exchange agrees with the views Specifically, the Commission stated its on competition that is not necessary or expressed in the related publications belief that the resulting ‘‘reduction in appropriate in furtherance of the that ‘‘the current ‘one-size-fits-all’ the amount of unsettled trades and the purposes of the Exchange Act. This is equity market structure, as largely period of time during which the CCP is because, with the exception of Thinly governed under Regulation NMS, may exposed to risk would reduce the Traded Securities described below, not be optimal for thinly traded amount of financial resources that the other national securities exchanges securities’’ 364 and that ‘‘more needs to CCP members may have to provide to would be able to extend UTP to be done to promote liquidity and to support the CCP’s risk management Securities in accordance with improve the listing and trading process . . .’’ and that ‘‘[t]his reduction Commission rules just as they can environment for thinly traded in the potential need for financial regarding any other NMS stock. stocks.’’ 365 The Commission noted that resources should, in turn, reduce the Regarding consideration (6) and the ‘‘secondary market for thinly traded liquidity costs and capital demands suspensions of UTP for Thinly Traded securities faces liquidity challenges that clearing broker-dealers face . . . and Securities, the Exchange believes that can have a negative effect on both allow for improved capital proposed BSTX Rule 25150 would investors and issuers traded securities utilization.’’ 359 The Commission went impose a burden on competition as faces liquidity challenges that can have on to state its belief that shortening the described below. However, for the a negative effect on both investors and settlement cycle ‘‘would also lead to reasons described below the Exchange issuer’’ including ‘‘wider spreads and benefits to other market participants, believes that the degree of the burden on less displayed size relative to securities including introducing broker-dealers, competition is justified under the that trade in greater volume, often institutional investors, and retail Exchange Act because it is necessary resulting in higher transaction costs for investors’’ such as ‘‘quicker access to and appropriate to promote other investors.’’ 366 These concerns have funds and securities following trade express objectives of the Exchange Act. been echoed in statements by former execution’’ and ‘‘reduced margin If an operating company that is an Commission Chairman Jay Clayton, charges and other fees that clearing issuer of a Security gives written notice former Director of the Division of broker-dealers may pass down to other to the Exchange under BSTX Rule Trading and Market Brett Redfearn, the market participants[.]’’ 360 The 25150(b) that it elects a suspension of Commission’s Small Business Advisory Commission also ‘‘noted that a move to UTP and the Exchange determines that Committee and demonstrated through a T+1 standard settlement cycle could the Security qualifies as a Thinly empirical analyses by the Division of have similar qualitative benefits of Traded Security, the Thinly Traded Trading and Market’s Office of market, credit, and liquidity risk Security would be eligible to trade only Analytics and Research (OAR) and reduction for market participants[.]’’ 361 on BSTX and OTC while the suspension academics.367 A frequently discussed The Exchange agrees with these of UTP is in effect. This would burden potential solution to these liquidity and statements by the Commission and has competition regarding other national poor market quality issues facing thinly therefore proposed BSTX Rule 25100(d) securities exchanges for the time that traded securities has been the in a form that would promote the the suspension of UTP is in effect suspension of UTP for such securities, benefits of shorter settlement cycles for because it would mean that the allowing for displayed liquidity to be Securities without imposing burdens on exchanges would not be permitted to concentrated on a single exchange.368 other national securities exchanges or extend UTP to the Thinly Traded The Exchange has thus proposed the market participants that are not BSTX Security and therefore the Thinly suspension of UTP in response to these Participants. Traded Security would only trade on concerns. The Exchange notes that it proposes to use the same criteria as used With respect to consideration (4) BSTX and OTC. The Exchange believes, by OAR (i.e., an ADV of less than above, as previously noted, market however, that this burden on other 100,000 shares) 369 to distinguish thinly participants would not be limited in exchanges is appropriately limited to traded securities from more actively their ability to trade Securities OTC the subset of Securities that are Thinly traded securities with the additional because Securities could be traded OTC, Traded Securities because it would only conditions that only the Securities of an including Thinly Traded Securities for apply (i) in the event that the Security operating company and must have a which UTP has been suspended, and meets the average daily trading volume market capitalization of less than $1 would be cleared and settled in the thresholds in BSTX Rule 25150 and (ii) same manner as other NMS stocks the issuer elects to notify the Exchange in writing that it wishes to suspend 362 15 U.S.C. 78f(b)(8). through the facilities of a registered 363 UTP. Therefore, the burden on other See supra n. 42–50 and accompanying text. clearing agency. Thus, the Exchange 364 Id. does not believe that its proposal will exchanges would never apply regarding 365 Id. place any new burden on competition a Security that is not a Thinly Traded 366 Id. with respect to OTC trading, given that Security. 367 Id. trading, clearance and settlement will As also described in Item 3, Part II.H, 368 See supra note 51–52. the Exchange believes that this limited 369 See supra note 56 noting the immaterial burden on other exchanges would be difference between the construction used by OAR 359 See supra n. 88–91 and accompanying text. of an ADV of less than 100,000 shares versus the 360 Id. offset and necessary and appropriate Exchange’s proposed construction of an ADV of 361 Id. under Section 6(b)(8) of the Exchange 100,000 shares or less.
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billion, which the Exchange believes C. Self-Regulatory Organization’s All submissions should refer to File helps ensure that the competitive Statement on Comments on the Number SR–BOX–2021–06. This file burden imposed by the proposed Proposed Rule Change Received From number should be included on the suspension of UTP is narrowly tailored Members, Participants, or Others subject line if email is used. To help the to address liquidity and market quality Commission process and review your Written comments were not and are concerns for securities that are thinly comments more efficiently, please use not intended to be solicited with respect traded.370 It is for these reasons that the only one method. The Commission will to the proposed rule change and none Exchange believes that the burden on post all comments on the Commission’s have been received. competition through the suspension of internet website (http://www.sec.gov/ UTP for Thinly Traded Securities (at the III. Date of Effectiveness of the rules/sro.shtml). Copies of the election of the issuer) is justified in Proposed Rule Change and Timing for submission, all subsequent furtherance of goal of improving market Commission Action amendments, all written statements quality for securities that are thinly Within 45 days of the date of with respect to the proposed rule traded. publication of this notice in the Federal change that are filed with the In addition, the Exchange does not Register or within such longer period Commission, and all written believe that the suspension of UTP for up to 90 days (i) as the Commission may communications relating to the Thinly Traded Securities will impose a designate if it finds such longer period proposed rule change between the burden on competition not necessary or to be appropriate and publishes its Commission and any person, other than appropriate in furtherance of the those that may be withheld from the 371 reasons for so finding or (ii) as to which Exchange Act because other the self-regulatory organization public in accordance with the exchanges could similarly be granted a consents, the Commission will: provisions of 5 U.S.C. 552, will be suspension of UTP for qualifying thinly available for website viewing and (A) By order approve or disapprove traded securities listed on their markets. printing in the Commission’s Public the proposed rule change, or Exchanges can compete with each other Reference Room, 100 F Street NE, in attracting issuers of thinly traded (B) institute proceedings to determine Washington, DC 20549, on official securities to be singly-listed and traded whether the proposed rule change business days between the hours of on their respective exchanges. should be disapproved. 10:00 a.m. and 3:00 p.m. Copies of the Exchanges would still be able to IV. Solicitation of Comments filing also will be available for compete with one another for listings inspection and copying at the principal Interested persons are invited to and the market for all thinly traded office of the Exchange. All comments submit written data, views, and securities could be improved. Moreover, received will be posted without change. arguments concerning the foregoing, if the suspension of UTP has the desired Persons submitting comments are including whether the proposed rule effect of improving the overall liquidity cautioned that we do not redact or edit change is consistent with the Act. of a Thinly Traded Security, such personal identifying information from Comments may be submitted by any of Security should hopefully exceed the comment submissions. You should the following methods: 100,000 share ADV or $1 billion market submit only information that you wish capitalization thresholds and become Electronic Comments to make available publicly. All available for UTP, thus removing any submissions should refer to File • Use the Commission’s internet barrier to competition once the purpose Number SR–BOX–2021–06 and should comment form (http://www.sec.gov/ for which the suspension of UTP was be submitted on or before June 23, 2021. rules/sro.shtml); or initiated has been fulfilled. • Send an email to rule-comments@ For the Commission, by the Division of sec.gov. Please include File Number SR– Trading and Markets, pursuant to delegated 370 In addition, the Exchange proposes to work authority.372 with other SROs to amend the revenue allocation BOX–2021–06 on the subject line. formula of the applicable NMS plan(s) for J. Matthew DeLesDernier, consolidated market data to exclude Thinly Traded Paper Comments Assistant Secretary. Securities in order to prevent the Exchange from • Send paper comments in triplicate [FR Doc. 2021–11410 Filed 6–1–21; 8:45 am] unduly profiting from the suspension of UTP under such formula. See supra notes 70–71 and to Secretary, Securities and Exchange BILLING CODE 8011–01–P accompanying text. Commission, 100 F Street NE, 371 15 U.S.C. 78f(b)(8). Washington, DC 20549–1090. 372 17 CFR 200.30–3(a)(12).
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