Vol. 81 Monday, No. 142 July 25, 2016
Pages 48315–48686
OFFICE OF THE FEDERAL REGISTER
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Contents Federal Register Vol. 81, No. 142
Monday, July 25, 2016
Agriculture Department NOTICES See Forest Service Agency Information Collection Activities; Proposals, See Procurement and Property Management Office, Submissions, and Approvals: Agriculture Department Disclosure and Reporting of CRA-Related Agreements, See Rural Business-Cooperative Service 48499–48500 Interagency Guidance on Asset Securitization Activities, Antitrust Division 48500–48501 NOTICES Reduction of Permanent Capital Notice, 48498–48499 Final Judgment and Competitive Impact Statement: Charter Renewals: United States v. VA Partners I, LLC, ValueAct Capital Minority Depository Institutions Advisory Committee, Master Fund, LP, and ValueAct Co-Invest 48499 International, LP, 48450–48461 Membership Changes under the National Cooperative Copyright Royalty Board Research and Production Act: PROPOSED RULES Advanced Media Workflow Association, Inc., 48449– Determination of Rates and Terms for Making and 48450 Distributing Phonorecords (Phonorecords III), 48371– Integrated Photonics Institute for Manufacturing 48372 Innovation Operating under the Name of the American Institute for Manufacturing Integrated Defense Department Photonics, 48450 See Navy Department OpenDaylight Project, Inc., 48462 NOTICES Agency Information Collection Activities; Proposals, Census Bureau Submissions, and Approvals, 48398–48399, 48404– PROPOSED RULES 48405, 48407–48408 2020 Census Residence Criteria and Residence Situations, Agency Information Collection Activities; Proposals, 48365–48366 Submissions, and Approvals: Contract Funding—Limitation of Costs/Funds, 48423– Centers for Medicare & Medicaid Services 48424 NOTICES Arms Sales, 48396–48407 Agency Information Collection Activities; Proposals, Environmental Assessments; Availability, etc.: Submissions, and Approvals, 48424–48425 Addressing the Closure of Former Defense Fuel Support Children and Families Administration Point Moffett Field Located in Santa Clara County, NOTICES CA, 48404 Agency Information Collection Activities; Proposals, Education Department Submissions, and Approvals, 48425 RULES Coast Guard Final Priorities: RULES Training of Interpreters for Individuals Who Are Deaf or Drawbridge Operations: Hard of Hearing and Individuals Who Are Deaf-Blind Fox River, DePere to Oshkosh, WI, 48327–48329 Program, 48335–48346 Safety Zones: PROPOSED RULES Illinois River Mile 69.3 to 69.8; Meredosia, IL, 48333– Program Integrity and Improvement, 48598–48617 48335 NOTICES Pleasure Beach Bridge, Bridgeport, CT, 48329–48331 Applications for New Awards: Security Zones: Training of Interpreters for Individuals Who Are Deaf or Delaware River, Schuylkill River; Philadelphia, PA, Hard of Hearing and Individuals Who Are Deaf-Blind 48331–48333 Program, 48409–48414 PROPOSED RULES Drawbridge Operations: Energy Department Keweenaw Waterway, Houghton and Hancock, MI, RULES 48369–48371 Energy Conservation Program: Test Procedures for Ceiling Fans, 48620–48646 Commerce Department NOTICES See Census Bureau Approvals to Import and Export Natural Gas, 48414–48415 See International Trade Administration See National Oceanic and Atmospheric Administration Environmental Protection Agency RULES Comptroller of the Currency Air Quality State Implementation Plans; Approvals and RULES Promulgations: Guidance: Limited Approval, Limited Disapproval of California Air Interagency Questions and Answers Regarding Plan Revisions, Eastern Kern Air Pollution Control Community Reinvestment, 48506–48556 District, 48346–48348
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Clean Air Act Requirements: Qualification of Drivers; Exemption Applications: Clean Data Determination for 1997 PM2.5 Standards; Vision, 48493–48495 California—South Coast, 48350–48356 Extension of Deadline for Action on the Section 126 Federal Reserve System Petition from Connecticut, 48348–48350 RULES National Emission Standards for Hazardous Air Pollutants Guidance: for the Portland Cement Manufacturing Industry, Interagency Questions and Answers Regarding 48356–48362 Community Reinvestment, 48506–48556 PROPOSED RULES NOTICES National Emission Standards for Hazardous Air Pollutants Changes in Bank Control: for the Portland Cement Manufacturing Industry, Acquisitions of Shares of a Bank or Bank Holding 48372–48373 Company, 48421 Pesticides; Certification of Pesticide Applicators: Formations of, Acquisitions by, and Mergers of Bank Submission to the Secretary of Agriculture, 48373–48374 Holding Companies, 48421 Proposals to Engage in or to Acquire Companies Engaged in Federal Aviation Administration Permissible Nonbanking Activities, 48421 RULES Airworthiness Directives: CFM International, S.A. Turbofan Engines Modified by Federal Trade Commission Supplemental Type Certificate SE00034EN, 48321– NOTICES 48323 Agency Information Collection Activities; Proposals, Extension of Requirement for Helicopters to Use the New Submissions, and Approvals, 48421–48423 York North Shore Helicopter Route, 48323–48327 Special Conditions: Federal Transit Administration Avmax Aviation Services Inc., Bombardier Model DHC– NOTICES 8–100/–200/–300 Series Airplanes; Installed Limitations on Claims Against a Proposed Public Rechargeable Lithium Batteries and Battery Systems, Transportation Project, 48498 48319–48321 PROPOSED RULES Fish and Wildlife Service Establishment of Restricted Area R–2306F: RULES Yuma Proving Ground, AZ, 48364–48365 Migratory Bird Hunting: NOTICES Seasons and Bag and Possession Limits for Certain Petitions for Exemptions; Summaries: Migratory Game Birds, 48648–48685 AirNet II, 48491 Florida Air Transport, 48490–48491 Forest Service Federal Communications Commission NOTICES RULES Meetings: Radio Experimentation and Market Trials: Streamlining North Gifford Pinchot Resource Advisory Committee, Rules, 48362–48363 48376–48377 NOTICES Travel Management Plan: Agency Information Collection Activities; Proposals, Pike/San Isabel National Forests, 48375–48376 Submissions, and Approvals, 48415–48420 General Services Administration Federal Deposit Insurance Corporation NOTICES RULES Agency Information Collection Activities; Proposals, Guidance: Submissions, and Approvals: Interagency Questions and Answers Regarding Contract Funding—Limitation of Costs/Funds, 48423– Community Reinvestment, 48506–48556 48424 NOTICES Terminations of Receivership: Health and Human Services Department Columbia Savings Bank, Cincinnati, OH, 48420–48421 See Centers for Medicare & Medicaid Services Federal Highway Administration See Children and Families Administration See Health Resources and Services Administration NOTICES See Indian Health Service Final Federal Agency Actions: See National Institutes of Health Florida Proposed Transportation Projects, 48491–48493 See Substance Abuse and Mental Health Services Federal Motor Carrier Safety Administration Administration NOTICES NOTICES Research Misconduct, 48426–48427 Commercial Driver’s License Standards; Applications for Exemption: Daimler Trucks North America, 48496–48498 Health Resources and Services Administration Hours of Service of Drivers: NOTICES U.S. Department of Energy; FAST Act Extension of Health Center Program, 48426 Expiration Date, 48495–48496 WestRock Exemption; FAST Act Extension of Homeland Security Department Compliance Date, 48496 See Coast Guard
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Housing and Urban Development Department National Archives and Records Administration PROPOSED RULES NOTICES Continuum of Care Program: Charter Renewals: Continuum of Care Formula, 48366–48369 Advisory Committee on Presidential Library-Foundation NOTICES Partnerships, 48464 Meetings: Manufactured Housing Consensus Committee, National Institutes of Health Teleconference, 48442–48443 NOTICES Government-Owned Inventions; Availability for Licensing, Indian Health Service 48439 NOTICES Meetings: Agency Information Collection Activities; Proposals, Eunice Kennedy Shriver National Institute of Child Submissions, and Approvals: Health and Human Development, 48438–48439 Environmental Health Assessment of Tribal Child Care National Heart, Lung, and Blood Advisory Council, 48440 Centers in the Pacific Northwest, 48437–48438 National Heart, Lung, and Blood Institute, 48439–48440 Funding Availabilities: National Indian Health Outreach and Education—Health National Oceanic and Atmospheric Administration Reform Funding Opportunity, 48427–48437 NOTICES Agency Information Collection Activities; Proposals, Interior Department Submissions, and Approvals, 48393–48394 See Fish and Wildlife Service Applications: See Ocean Energy Management Bureau Marine Mammals; File No. 20481, 48394 Meetings: Caribbean Fishery Management Council, 48394–48396 Internal Revenue Service International Whaling Commission, 48395 NOTICES Agency Information Collection Activities; Proposals, Navy Department Submissions, and Approvals, 48501–48503 NOTICES Agency Information Collection Activities; Proposals, International Trade Administration Submissions, and Approvals, 48408 NOTICES Environmental Assessments; Availability, etc.: Antidumping or Countervailing Duty Investigations, Orders, Consolidation and Renovation at Marine Corps Forces or Reviews: Reserve Center Brooklyn, NY, 48408–48409 Certain Biaxial Integral Geogrid Products from the People’s Republic of China, 48384–48386 Nuclear Regulatory Commission Certain Corrosion-Resistant Steel Products from India, NOTICES Italy, Republic of Korea and the People’s Republic of Meetings; Sunshine Act, 48464 China, 48387–48390 Certain Corrosion-Resistant Steel Products from India, Ocean Energy Management Bureau Italy, the People’s Republic of China, the Republic of Korea and Taiwan, 48390–48393 NOTICES Utility Scale Wind Towers from the People’s Republic of Records of Decisions: China, 48384 Gulf of Mexico, Outer Continental Shelf, Western Establishment of the U.S. Department of Commerce Trade Planning Area Oil and Gas Lease Sale 248, 48449 Finance Advisory Council, 48386–48387 Sales: Western Gulf of Mexico Planning Area Outer Continental Shelf Oil and Gas Lease Sale 248, 48443–48448 Justice Department See Antitrust Division Presidential Documents NOTICES ADMINISTRATIVE ORDERS Agency Information Collection Activities; Proposals, Foreign Assistance Act of 1961; Delegation of Authority Submissions, and Approvals: Under Section 610 (Memorandum of July 13, 2016), Proposed Uniform Language for Testimony and Reports, 48315 48462–48464 Foreign Assistance Act of 1961; Delegation of Authority Proposed Consent Decrees under the Clean Water and Oil Under Sections 614(a)(1) and 610 (Memorandum of Pollution Act, 48462 July 13, 2016), 48317
Library of Congress Procurement and Property Management Office, See Copyright Royalty Board Agriculture Department NOTICES National Aeronautics and Space Administration Fiscal Year 2015 Service Contract Inventories, 48377 NOTICES Agency Information Collection Activities; Proposals, Railroad Retirement Board Submissions, and Approvals: NOTICES Contract Funding—Limitation of Costs/Funds, 48423– Agency Information Collection Activities; Proposals, 48424 Submissions, and Approvals, 48464–48465
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Rural Business-Cooperative Service See Federal Motor Carrier Safety Administration NOTICES See Federal Transit Administration Funding Availabilities: Biorefinery, Renewable Chemical, and Biobased Product Treasury Department Manufacturing Assistance Program, 48377–48381 See Comptroller of the Currency Repowering Assistance Program, 48381–48384 See Internal Revenue Service Securities and Exchange Commission NOTICES Separate Parts In This Issue Priorities, Requirements, Definitions, and Selection Criteria: NASDAQ BX, Inc., 48485–48487 Part II Self-Regulatory Organizations; Proposed Rule Changes: Depository Trust Co., 48482–48485 Federal Deposit Insurance Corporation, 48506–48556 Financial Industry Regulatory Authority, Inc., 48465– Federal Reserve System, 48506–48556 48475 Treasury Department, Comptroller of the Currency, 48506– NASDAQ Stock Market, LLC, 48475–48477, 48487–48490 48556 NYSE Arca, Inc., 48477–48482 Part III Small Business Administration Small Business Administration, 48558–48595 RULES Small Business Mentor Protege Programs, 48558–48595 Part IV NOTICES Education Department, 48598–48617 Disaster Declarations: Oklahoma, 48490 Part V Military Reservist Economic Injury Disaster Loans Interest Energy Department, 48620–48646 Rate for Fourth Quarter Fiscal Year 2016, 48490 Part VI Substance Abuse and Mental Health Services Interior Department, Fish and Wildlife Service, 48648– Administration 48685
NOTICES Agency Information Collection Activities; Proposals, Reader Aids Submissions, and Approvals, 48440–48441 Consult the Reader Aids section at the end of this issue for Current List of HHS-Certified Laboratories and phone numbers, online resources, finding aids, and notice Instrumented Initial Testing Facilities Which Meet of recently enacted public laws. Minimum Standards to Engage in Urine Drug Testing for Federal Agencies, 48441–48442 To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http:// Transportation Department listserv.access.gpo.gov and select Online mailing list See Federal Aviation Administration archives, FEDREGTOC-L, Join or leave the list (or change See Federal Highway Administration settings); then follow the instructions.
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CFR PARTS AFFECTED IN THIS ISSUE
A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.
3 CFR Administrative Orders: Memorandums: Memorandum of July 13, 2016 ...... 48315 Memorandum of July 13, 2016 ...... 48317 10 CFR 429...... 48620 430...... 48620 12 CFR 25...... 48506 195...... 48506 228...... 48506 345...... 48506 13 CFR 121...... 48558 124...... 48558 125...... 48558 126...... 48558 127...... 48558 134...... 48558 14 CFR 25...... 48319 39...... 48321 93...... 48323 Proposed Rules: 73...... 48364 15 CFR Proposed Rules: Ch.1 ...... 48365 24 CFR Proposed Rules: 578...... 48366 33 CFR 117...... 48327 165 (3 documents) ...... 48329, 48331, 48333 Proposed Rules: 117...... 48369 34 CFR Ch. III ...... 48335 Proposed Rules: 600...... 48598 668...... 48598 37 CFR Proposed Rules: 385...... 48371 40 CFR 52 (3 documents) ...... 48346, 48348, 48350 63...... 48356 Proposed Rules: 63...... 48372 171...... 48373 47 CFR 5...... 48362 50 CFR 20...... 48648
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Federal Register Presidential Documents Vol. 81, No. 142
Monday, July 25, 2016
Title 3— Memorandum of July 13, 2016
The President Delegation of Authority Under Section 610 of the Foreign As- sistance Act of 1961
Memorandum for the Secretary of State
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby delegate to you the authority, subject to fulfilling the requirements of section 652 of the Foreign Assistance Act of 1961 (FAA), and section 7009(d) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2010 (Division F, Public Law 111–117) (FY 2010 SFOAA), as carried forward by the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Division B, Public Law 112–10), and section 7009(d) of the FY 2012 SFOAA (Division I, Public Law 112–74), to make the requisite determination and execute the transfer under section 610 of the FAA of up to $21,380,000 in FY 2011 International Narcotics Control and Law Enforcement (INCLE) funds and up to $435,000 in FY 2012 INCLE funds to the Economic Support Fund account in order to provide assistance for Burma. You are authorized and directed to publish this memorandum in the Federal Register.
THE WHITE HOUSE, Washington, July 13, 2016
[FR Doc. 2016–17639 Filed 7–22–16; 8:45 am] Billing code 4710–10–P
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Memorandum of July 13, 2016
Delegation of Authority Under Sections 614(a)(1) and 610 of the Foreign Assistance Act of 1961
Memorandum for the Secretary of State
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby delegate to you the following authorities, subject to fulfilling the requirements of sections 614(a)(3) and 652 of the Foreign Assistance Act of 1961 (FAA), and section 7009(d) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2010 (Division F, Public Law 111–117), in order to provide assistance for Nigeria: (1) the authority under section 614(a)(1) of the FAA to determine whether it is important to the security interests of the United States to furnish assistance using up to $19,708,000 of Fiscal Year (FY) 2010 supplemental International Narcotics Control and Law Enforcement (INCLE) funds without regard to any other provision of law within the purview of section 614(a)(1) of the FAA; and (2) the authority under section 610 of the FAA to make the requisite determination and execute the transfer of up to $7,968,000 of these FY 2010 supplemental INCLE funds to the Economic Support Fund account. You are authorized and directed to publish this memorandum in the Federal Register.
THE WHITE HOUSE, Washington, July 13, 2016
[FR Doc. 2016–17640
Filed 7–22–16; 8:45 am] Billing code 4710–10–P
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Rules and Regulations Federal Register Vol. 81, No. 142
Monday, July 25, 2016
This section of the FEDERAL REGISTER • Mail: Send comments to Docket FAA therefore finds that good cause contains regulatory documents having general Operations, M–30, U.S. Department of exists for making these special applicability and legal effect, most of which Transportation (DOT), 1200 New Jersey conditions effective upon publication in are keyed to and codified in the Code of Avenue SE., Room W12–140, West the Federal Register. Federal Regulations, which is published under Building Ground Floor, Washington, 50 titles pursuant to 44 U.S.C. 1510. Comments Invited DC, 20590–0001. • The Code of Federal Regulations is sold by Hand Delivery or Courier: Take We invite interested people to take the Superintendent of Documents. Prices of comments to Docket Operations in part in this rulemaking by sending new books are listed in the first FEDERAL Room W12–140 of the West Building written comments, data, or views. The REGISTER issue of each week. Ground Floor at 1200 New Jersey most helpful comments reference a Avenue SE., Washington, DC, between 9 specific portion of the special a.m. and 5 p.m., Monday through conditions, explain the reason for any DEPARTMENT OF TRANSPORTATION Friday, except Federal holidays. recommended change, and include • Fax: Fax comments to Docket supporting data. Federal Aviation Administration Operations at 202–493–2251. We will consider all comments we Privacy: The FAA will post all receive by the closing date for 14 CFR Part 25 comments it receives, without change, comments. We may change these special [Docket No. FAA–2015–1087; Special to http://www.regulations.gov/, conditions based on the comments we Conditions No. 25–622–SC] including any personal information the receive. commenter provides. Using the search Background Special Conditions: Avmax Aviation function of the docket Web site, anyone Services Inc., Bombardier Model DHC– can find and read the electronic form of On September 8, 2015, Avmax 8–100/–200/–300 Series Airplanes; all comments received into any FAA Aviation Services Inc. applied for a Installed Rechargeable Lithium docket, including the name of the supplemental type certificate (STC) for Batteries and Battery Systems individual sending the comment (or the installation of rechargeable lithium signing the comment for an association, batteries to replace the existing nickel- AGENCY: Federal Aviation cadmium and lead-acid rechargeable Administration (FAA), DOT. business, labor union, etc.). DOT’s complete Privacy Act Statement can batteries in Bombardier Model DHC–8– ACTION: Final special conditions; be found in the Federal Register 100/–200/–300 series airplanes. request for comments. published on April 11, 2000 (65 FR The Model DHC–8–100/–200/–300 series airplanes are transport-category, SUMMARY: These special conditions are 19477–19478), as well as at http:// twin-engine turboprops with a issued for the Bombardier Model DHC– DocketsInfo.dot.gov/. maximum capacity of 37 (100 and 200 8–100/–200/–300 series airplanes. These Docket: Background documents or series) or 50 (300 series) passengers and airplanes, as modified by Avmax comments received may be read at a maximum takeoff weight of 36,300 lbs Aviation Services Inc. (Avmax), will http://www.regulations.gov/ at any time. (100 and 200 series) or 43,000 lbs (300 have a novel or unusual design feature Follow the online instructions for series). when compared to the state of accessing the docket or go to the Docket technology envisioned in the Operations in Room W12–140 of the Type Certification Basis airworthiness standards for transport- West Building Ground Floor at 1200 Under the provisions of 14 CFR category airplanes. This design feature New Jersey Avenue SE., Washington, 21.101, Avmax must show that the is rechargeable lithium batteries to DC, between 9 a.m. and 5 p.m., Monday Bombardier Model DHC–8–100/–200/– replace the existing nickel-cadmium through Friday, except Federal holidays. 300 series airplanes, as changed, and lead-acid rechargeable batteries. FOR FURTHER INFORMATION CONTACT: continue to meet the applicable The applicable airworthiness Nazih Khaouly, FAA, Airplane and provisions of the regulations regulations do not contain adequate or Flight Crew Interface Branch, ANM– incorporated by reference in Type appropriate safety standards for these 111, Transport Airplane Directorate, Certificate No. A13NM, or the design features. These special Aircraft Certification Service, 1601 Lind applicable regulations in effect on the conditions contain the additional safety Avenue SW., Renton, Washington date of application for the change. The standards that the Administrator 98057–3356; telephone 425–227–2432; regulations incorporated by reference in considers necessary to establish a level facsimile 425–227–1149. the type certificate are commonly of safety equivalent to that established SUPPLEMENTARY INFORMATION: The FAA referred to as the ‘‘original type by the existing airworthiness standards. has determined that notice of, and certification basis.’’ DATES: This action is effective on opportunity for prior public comment In addition, if the regulations Avmax July 25, 2016. We must receive on, these special conditions is incorporated by reference do not your comments by September 8, 2016. impracticable because these procedures provide adequate standards regarding ADDRESSES: Send comments identified would significantly delay issuance of the change, the applicant must comply by docket number FAA–2015–1087 the design approval and thus delivery of with certain regulations in effect on the using any of the following methods: the affected airplanes. In addition, the date of application for the change. • Federal eRegulations Portal: Go to substance of these special conditions If the Administrator finds that the http://www.regulations.gov/ and follow has been subject to the public comment applicable airworthiness regulations the online instructions for sending your process in several prior instances with (i.e., 14 CFR part 25) do not contain comments electronically. no substantive comments received. The adequate or appropriate safety standards
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for the Model DHC–8–100/–200/–300 2007, Amendment 25–123 moved the flammable. The electrolyte can serve as series airplanes because of a novel or contents of paragraph (b) in § 25.1353 to a source of fuel for an external fire if unusual design feature, special the new subpart H, resulting in the there is a breach of the battery conditions are prescribed under the relocation of the regulations governing container. provisions of 14 CFR 21.16. the installation of batteries in § 25.1353 These problems, which users of Special conditions are initially from paragraph (c) to paragraph (b). lithium batteries experience, raise applicable to the model for which they The proposed use of rechargeable concerns about the use of these batteries are issued. Should the applicant apply lithium batteries for equipment and in commercial aviation. The intent of for an STC to modify any other model systems on airplanes prompted the FAA these special conditions is to establish included on the same type certificate to to review the adequacy of these existing appropriate airworthiness standards for incorporate the same novel or unusual battery regulations. Our review lithium battery installations in the design feature, the special conditions indicates that the existing regulations do Bombardier Model DHC–8–100/–200/– would also apply to the other model. not adequately address several failure, 300 series airplanes and to ensure, as In addition to the applicable operational, and maintenance required in §§ 25.601 and 25.1309, that airworthiness regulations and special characteristics of lithium batteries, these battery installations are not conditions, the Model DHC–8–100/– which could affect the safety and hazardous or unreliable. 200/–300 series airplanes must comply reliability of the lithium battery These special conditions contain the with the fuel-vent and exhaust-emission installations. additional safety standards that the requirements of 14 CFR part 34, and the At present, the airplane industry has Administrator considers necessary to noise-certification requirements of 14 limited experience with the use of establish a level of safety equivalent to CFR part 36. lithium batteries in applications that established by the existing The FAA issues special conditions, as involving commercial aviation. airworthiness standards. defined in 14 CFR 11.19, in accordance However, other users of this technology, Applicability with § 11.38, and they become part of ranging from wireless-telephone the type certification basis under manufacturers to the electric-vehicle As discussed above, these special § 21.101. industry, have noted safety problems conditions are applicable to Bombardier Model DHC–8–100/–200/–300 series Novel or Unusual Design Features with rechargeable lithium batteries. These problems include overcharging, airplanes as modified by Avmax. The Bombardier Model DHC–8–100/– over-discharging, and flammability of Should Avmax apply at a later date for 200/–300 series airplanes, as modified cell components. a supplemental type certificate to by Avmax, will incorporate the modify any other model included on following novel or unusual design 1. Overcharging Type Certificate No. A13NM feature: Installed rechargeable lithium In general, lithium batteries are incorporating the same novel or unusual batteries and battery systems. significantly more susceptible to design feature, the special conditions Rechargeable lithium batteries are a internal failures that can result in self- would apply to that model as well. novel or unusual design feature in sustaining increases in temperature and Conclusion transport-category airplanes. This type pressure (i.e., thermal runaway) than of battery has certain failure, their nickel-cadmium or lead-acid This action affects only certain novel operational, and maintenance counterparts. This condition is or unusual design features on two characteristics that differ significantly especially true for overcharging, which model series of airplanes. It is not a rule from those of the nickel-cadmium and causes heating and destabilization of the of general applicability. lead-acid rechargeable batteries components of the cell, leading to the The substance of these special currently approved for installation on formation (by plating) of highly unstable conditions has been subjected to the transport-category airplanes. metallic lithium. The metallic lithium notice and comment period in several prior instances and has been derived Discussion can ignite, resulting in a self-sustaining fire or explosion. In addition, the without substantive change from those The current regulations governing severity of thermal runaway, due to previously issued. It is unlikely that installation of batteries in large overcharging, increases with increasing prior public comment would result in a transport-category airplanes were battery capacity due to the higher significant change from the substance derived from Civil Air Regulations amount of electrolyte in large batteries. contained herein. Therefore, because a (CAR) part 4b.625(d) as part of the re- delay would significantly affect the codification of CAR 4b that established 2. Over-Discharging certification of the airplane, which is 14 CFR part 25 in February 1965. The Discharge of some types of lithium imminent, the FAA has determined that recodified battery requirements, battery cells beyond a certain voltage prior public notice and comment are § 25.1353(c)(1) through (c)(4), basically (typically 2.4 volts), can cause corrosion unnecessary and impracticable, and reworded the CAR requirements. of the electrodes of the cell, resulting in good cause exists for adopting these Increased use of nickel-cadmium loss of battery capacity that cannot be special conditions upon publication in batteries in small airplanes resulted in reversed by recharging. This loss of the Federal Register. The FAA is increased incidents of battery fires and capacity may not be detected by the requesting comments to allow interested failures that led to additional simple voltage measurements persons to submit views that may not rulemaking affecting large transport- commonly available to flightcrews as a have been submitted in response to the category airplanes as well as small means of checking battery status—a prior opportunities for comment airplanes. On September 1, 1977, and problem shared with nickel-cadmium described above. March 1, 1978, with Amendments 25– batteries. List of Subjects in 14 CFR Part 25 41 and 25–42, respectively, the FAA added paragraphs (c)(5) and (c)(6) to 3. Flammability of Cell Components Aircraft, Aviation safety, Reporting § 25.1353, governing nickel-cadmium Unlike nickel-cadmium and lead-acid and recordkeeping requirements. battery installations on large transport- batteries, some types of lithium batteries The authority citation for these category airplanes. On December 10, use liquid electrolytes that are special conditions is as follows:
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Authority: 49 U.S.C. 106(g), 40113, 44701, a. A battery-temperature sensing and reduction that may result from normal 44702, 44704. over-temperature warning system with a operational degradation. means for automatically disconnecting The Special Conditions Note 2: These special conditions are not the battery from its charging source in ■ intended to replace § 25.1353(c) in the Accordingly, pursuant to the authority the event of an over-temperature certification basis of Bombardier Model delegated to me by the Administrator, condition, or, DHC–8–100/–200/–300 series airplanes. the following special conditions are b. A battery-failure sensing and These special conditions apply only to issued as part of the type certification warning system with a means for rechargeable lithium batteries and lithium basis for Bombardier Model DHC–8– automatically disconnecting the battery battery systems and their installations on 100/–200/–300 series airplanes from its charging source in the event of Bombardier Model DHC–8–100/–200/–300 series airplanes, as modified by Avmax. The modified by Avmax Aviation Services battery failure. Inc. requirements of § 25.1353(c) remain in effect 8. Any rechargeable lithium battery for batteries and battery installations on In lieu of the requirements of 14 CFR installation, the function of which is Bombardier Model DHC–8–100/–200/–300 25.1353(c)(1) through (c)(4) at required for safe operation of the series airplanes that do not use lithium Amendment 25–51, all rechargeable airplane, must incorporate a monitoring batteries. lithium batteries and battery systems on and warning feature that will provide an Model DHC–8–100/–200/–300 Issued in Renton, Washington, on July 15, indication to the appropriate flight airplanes, as modified by Avmax 2016. crewmembers whenever the state-of- Aviation Services Inc., must be designed Michael Kaszycki, charge of the batteries has fallen below and installed as follows: Assistant Manager, Transport Airplane levels considered acceptable for Directorate, Aircraft Certification Service. 1. Safe cell temperatures and dispatch of the airplane. pressures must be maintained during [FR Doc. 2016–17428 Filed 7–22–16; 8:45 am] 9. The instructions for continued any foreseeable charging or discharging BILLING CODE 4910–13–P condition and during any failure of the airworthiness required by § 25.1529 charging or battery monitoring system must contain maintenance requirements not shown to be extremely remote. The to assure that the battery is sufficiently DEPARTMENT OF TRANSPORTATION rechargeable lithium battery installation charged at appropriate intervals must preclude explosion in the event of specified by the battery manufacturer Federal Aviation Administration those failures. and the equipment manufacturer that 2. Design of the rechargeable lithium contain the rechargeable lithium battery 14 CFR Part 39 batteries must preclude the occurrence or rechargeable lithium battery system. This is required to ensure that [Docket No. FAA–2012–1289; Directorate of self-sustaining, uncontrolled Identifier 2012–NE–43–AD; Amendment 39– increases in temperature or pressure. rechargeable lithium batteries and 18591; AD 2016–14–10] 3. No explosive or toxic gases emitted rechargeable lithium battery systems by any rechargeable lithium battery in will not degrade below specified RIN 2120–AA64 normal operation, or as the result of any ampere-hour levels sufficient to power the airplane systems for intended Airworthiness Directives; CFM failure of the battery charging system, International, S.A. Turbofan Engines monitoring system, or battery applications. The instructions for continued airworthiness must also Modified by Supplemental Type installation which is not shown to be Certificate SE00034EN extremely remote, may accumulate in contain procedures for the maintenance hazardous quantities within the of batteries in spares storage to prevent AGENCY: Federal Aviation airplane. the replacement of batteries with Administration (FAA), DOT. batteries that have experienced 4. Installations of rechargeable ACTION: degraded charge retention ability or Final rule; request for lithium batteries must meet the comments. requirements of § 25.863(a) through (d). other damage due to prolonged storage 5. No corrosive fluids or gases that at a low state of charge. Replacement SUMMARY: We are superseding may escape from any rechargeable batteries must be of the same airworthiness directive (AD) 2013–02– lithium battery may damage manufacturer and part number as 02 for certain CFM International, S.A. surrounding structure or any adjacent approved by the FAA. Precautions CFM56–3, CFM56–3B, and CFM56–3C systems, equipment, or electrical wiring should be included, in the instructions turbofan engines. AD 2013–02–02 of the airplane in such a way as to cause for continued airworthiness required removal from service of certain a major or more-severe failure maintenance instructions, to prevent high-pressure turbine (HPT) disks condition, in accordance with mishandling of the rechargeable lithium manufactured by Global Material § 25.1309(b) and applicable regulatory battery and rechargeable lithium battery Solutions of Pratt & Whitney, at reduced guidance. systems, which could result in short- maximum life limits. This AD corrects circuit, or other unintentional impact 6. Each rechargeable lithium battery the serial numbers (S/Ns) listed in AD damage caused by dropping batteries or installation must have provisions to 2013–02–02. This AD was prompted by other destructive means that could prevent any hazardous effect on reports that certain HPT disk S/Ns in result in personal injury or property structure or essential systems caused by AD 2013–02–02 and in certain Pratt & damage. the maximum amount of heat the Whitney service information are battery can generate during a short Note 1: The term ‘‘sufficiently charged’’ incorrect. We are issuing this AD to circuit of the battery or of its individual means that the battery will retain enough of prevent uncontained release of multiple cells. a charge, expressed in ampere-hours, to turbine blades, damage to the engine, ensure that the battery cells will not be and damage to the airplane. 7. Lithium battery installations must damaged. A battery cell may be damaged by have a system to control the charging lowering the charge below a point where the DATES: This AD is effective August 9, rate of the battery automatically, battery experiences a reduction in the ability 2016. designed to prevent battery overheating to charge and retain a full charge. This The Director of the Federal Register or overcharging, and, reduction would be greater than the approved the incorporation by reference
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of a certain publication listed in this AD FR 5712, January 28, 2013), (‘‘AD 2013– Comments Invited as of August 9, 2016. 02–02’’) for all CFM56–3, CFM56–3B, This AD is a final rule that involves We must receive any comments on and CFM56–3C turbofan engines requirements affecting flight safety, and this AD by September 8, 2016. modified by Supplemental Type we did not provide you with notice and ADDRESSES: You may send comments, Certificate SE00034EN, with certain an opportunity to provide your using the procedures found in 14 CFR HPT disks, installed. AD 2013–02–02 comments before it becomes effective. 11.43 and 11.45, by any of the following required removal from service of certain However, we invite you to send any methods: high-pressure turbine (HPT) disks written data, views, or arguments about • Federal eRulemaking Portal: Go to manufactured by Global Material this AD. Send your comments to an http://www.regulations.gov. Follow the Solutions of Pratt & Whitney, at reduced address listed under the ADDRESSES instructions for submitting comments. maximum life limits. AD 2013–02–02 section. Include ‘‘Docket No. FAA– • Fax: 202–493–2251. resulted from a report of a forging 2012–1289; Directorate Identifier 2012– • Mail: U.S. Department of process error during manufacture of NE–43–AD’’ at the beginning of your Transportation, Docket Operations, M– these HPT disks. We issued AD 2013– comments. We specifically invite 30, West Building Ground Floor, Room 02–02 to prevent uncontained release of comments on the overall regulatory, W12–140, 1200 New Jersey Avenue SE., multiple turbine blades, damage to the economic, environmental, and energy Washington, DC 20590. engine, and damage to the airplane. aspects of this AD. We will consider all • Hand Delivery: U.S. Department of Actions Since AD 2013–02–02 Was comments received by the closing date Transportation, Docket Operations, M– Issued and may amend this AD because of 30, West Building Ground Floor, Room those comments. W12–140, 1200 New Jersey Avenue SE., Since we issued AD 2013–02–02, we We will post all comments we Washington, DC 20590, between 9 a.m. received reports that certain HPT disk receive, without change, to http:// and 5 p.m., Monday through Friday, S/Ns GLKBAA9307, GLKBAA9335, www.regulations.gov, including any except Federal holidays. GLKBAA9404, GLKBAA9407, and personal information you provide. We For service information identified in GLKBAA9409, in AD 2013–02–02 and will also post a report summarizing each this AD, contact Pratt & Whitney, 400 in certain Pratt & Whitney service substantive verbal contact we receive Main St., East Hartford, CT 06108; information are incorrect. The correct S/ about this AD. phone: 860–565–7700; fax: 860–565– Ns are: GKLBAA9307, GKLBAA9335, Costs of Compliance 1605. You may view this service GKLBAA9404, GKLBAA9407, and information at the FAA, Engine & GKLBAA9409. We estimate that this AD affects 0 Propeller Directorate, 1200 District engines installed on airplanes of U.S. Avenue, Burlington, MA 01803. For Related Service Information Under 1 registry. We also estimate that it will information on the availability of this CFR Part 51 take about 61 hours per engine to comply with this AD. The average labor material at the FAA, call 781–238–7125. We reviewed Pratt & Whitney Corp. It is also available on the Internet at rate is $85 per hour. Required parts cost Special Instruction No. 6F–12, Revision about $0 per engine. Based on these http://www.regulations.gov by searching A, dated May 17, 2016. The Special for and locating Docket No. FAA–2012– figures, we estimate the cost of this AD Instruction describes procedures for on U.S. operators to be $0. 1289. reducing the maximum life limit for Examining the AD Docket affected HPT disks. This service Authority for This Rulemaking information is reasonably available You may examine the AD docket on Title 49 of the United States Code because the interested parties have the Internet at http:// specifies the FAA’s authority to issue access to it through their normal course www.regulations.gov by searching for rules on aviation safety. Subtitle I, of business or by the means identified and locating Docket No. FAA–2012– Section 106, describes the authority of in the ADDRESSES section. the FAA Administrator. Subtitle VII, 1289; or in person at the Docket Aviation Programs, describes in more Management Facility between 9 a.m. FAA’s Determination detail the scope of the Agency’s and 5 p.m., Monday through Friday, authority. except Federal holidays. The AD docket We are issuing this AD because we We are issuing this rulemaking under contains this AD, the mandatory evaluated all the relevant information the authority described in Subtitle VII, continuing airworthiness information, and determined the unsafe condition Part A, Subpart III, Section 44701, regulatory evaluation, any comments described previously is likely to exist or ‘‘General requirements.’’ Under that received, and other information. The develop in other products of the same section, Congress charges the FAA with address for the Docket Office (phone: type design. promoting safe flight of civil aircraft in 800–647–5527) is in the ADDRESSES AD Requirements air commerce by prescribing regulations section. Comments will be available in for practices, methods, and procedures the AD docket shortly after receipt. This AD requires removal from the Administrator finds necessary for FOR FURTHER INFORMATION CONTACT: service of affected HPT disks at certain safety in air commerce. This regulation Kenneth Steeves, Aerospace Engineer, recalculated reduced maximum life is within the scope of that authority Engine Certification Office, FAA, Engine limits. because it addresses an unsafe condition & Propeller Directorate, 1200 District FAA’s Justification and Determination that is likely to exist or develop on Avenue, Burlington, MA 01803; phone: of the Effective Date products identified in this rulemaking 781–238–7765; fax: 781–238–7199; action. email: [email protected]. No domestic operators use this Regulatory Findings SUPPLEMENTARY INFORMATION: product. Therefore, we find that notice and opportunity for prior public This AD will not have federalism Discussion comment are unnecessary and that good implications under Executive Order On January 14, 2013, we issued AD cause exists for making this amendment 13132. This AD will not have a 2013–02–02, Amendment 39–17323 (78 effective in less than 30 days. substantial direct effect on the States, on
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the relationship between the national (d) Unsafe Condition the availability of this material at NARA, call government and the States, or on the This AD was prompted by reports that 202–741–6030, or go to: http:// distribution of power and certain HPT disk serial numbers in AD 2013– www.archives.gov/federal-register/cfr/ibr- responsibilities among the various 02–02 and in certain Pratt & Whitney service locations.html. levels of government. information are incorrect. We are issuing this Issued in Burlington, Massachusetts, on AD to prevent uncontained release of For the reasons discussed above, I July 11, 2016. multiple turbine blades, damage to the Colleen M. D’Alessandro, certify that this AD: engine, and damage to the airplane. (1) Is not a ‘‘significant regulatory Manager, Engine & Propeller Directorate, (e) Compliance action’’ under Executive Order 12866, Aircraft Certification Service. Comply with this AD within the [FR Doc. 2016–17442 Filed 7–22–16; 8:45 am] (2) Is not a ‘‘significant rule’’ under compliance times specified, unless already BILLING CODE 4910–13–P DOT Regulatory Policies and Procedures done. (44 FR 11034, February 26, 1979), (1) For CFM56–3, CFM56–3B, and CFM56– (3) Will not affect intrastate aviation 3C turbofan engines operating to 20,100 lbs DEPARTMENT OF TRANSPORTATION in Alaska to the extent that it justifies maximum takeoff (MTO) thrust, remove the making a regulatory distinction, and HPT disk from service on or before Federal Aviation Administration accumulating 8,000 cycles-since-new (CSN). (4) Will not have a significant (2) For CFM56–3B and CFM56–3C turbofan economic impact, positive or negative, engines operating to 22,100 lbs MTO thrust, 14 CFR Part 93 on a substantial number of small entities remove the HPT disk from service on or [Docket No.: FAA–2010–0302; Amdt. No. under the criteria of the Regulatory before accumulating 8,000 CSN. 93–99] Flexibility Act. (3) For CFM56–3C turbofan engines operating to 23,500 lbs MTO thrust, remove RIN 2120–AK84 List of Subjects in 14 CFR Part 39 the HPT disk from service on or before accumulating 4,000 CSN. Extension of the Requirement for Air transportation, Aircraft, Aviation (4) For HPT disks that have been used in Helicopters to Use the New York North safety, Incorporation by reference, multiple models or thrust installations, use Shore Helicopter Route Safety. the formula in the ADDED DATA section of AGENCY: Federal Aviation Adoption of the Amendment Pratt & Whitney Special Instruction 6F–12, Revision A, dated May 17, 2016 to calculate Administration (FAA), DOT. Accordingly, under the authority the remaining life on the disk. ACTION: Final rule. delegated to me by the Administrator, (f) Alternative Methods of Compliance SUMMARY: the FAA amends part 39 of the Federal This rulemaking amends the (AMOCs) expiration date of the final rule Aviation Regulations (14 CFR part 39) as The Manager, Engine Certification Office, follows: requiring pilots operating civil FAA, may approve AMOCs for this AD. Use helicopters under Visual Flight Rules to the procedures found in 14 CFR 39.19 to use the New York North Shore PART 39—AIRWORTHINESS make your request. You may email your DIRECTIVES request to: [email protected]. Helicopter Route when operating along that area of Long Island, New York. The ■ 1. The authority citation for part 39 (g) Related Information current rule expires on August 6, 2016. continues to read as follows: For more information about this AD, The FAA finds it necessary to extend contact Kenneth Steeves, Aerospace the rule for an additional four years to Authority: 49 U.S.C. 106(g), 40113, 44701. Engineer, Engine Certification Office, FAA, preserve the current operating § 39.13 [Amended] Engine & Propeller Directorate, 1200 District environment while the FAA conducts Avenue, Burlington, MA 01803; phone: 781– ongoing helicopter research that will be ■ 2. The FAA amends § 39.13 by 238–7765; fax: 781–238–7199; email: [email protected]. considered to determine appropriate removing airworthiness directive (AD) future actions. 2013–02–02, Amendment 39–17323 (78 (h) Material Incorporated by Reference DATES: This final rule is effective August FR 5712, January 28, 2013), (‘‘AD 2013– (1) The Director of the Federal Register 7, 2016, through August 6, 2020. 02–02’’), and adding the following new approved the incorporation by reference ADDRESSES: For information on where to AD: (IBR) of the service information listed in this obtain copies of rulemaking documents 2016–14–10 CFM International, S.A. paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. and other information related to this Turbofan Engines Modified by final rule, see ‘‘How To Obtain Supplemental Type Certificate (2) You must use this service information SE00034EN: Amendment 39–18591; as applicable to do the actions required by Additional Information’’ in the Docket No. FAA–2012–1289; Directorate this AD, unless the AD specifies otherwise. SUPPLEMENTARY INFORMATION section of Identifier 2012–NE–43–AD. (i) Pratt & Whitney Corp. Special this document. Instruction No. 6F–12, Revision A, dated FOR FURTHER INFORMATION CONTACT: For (a) Effective Date May 17, 2016. technical questions concerning this This AD is effective August 9, 2016. (ii) Reserved. (3) For Pratt & Whitney service information action, contact Kenneth Ready, Airspace (b) Affected ADs identified in this AD, contact Pratt & and Rules Team, AJV–113, Federal This AD supersedes AD 2013–02–02. Whitney, 400 Main St., East Hartford, CT Aviation Administration, 800 06108; phone: 860–565–7700; fax: 860–565– Independence Avenue SW., (c) Applicability 1605. Washington, DC 20591; telephone (202) This AD applies to CFM International, S.A. (4) You may view this service information 267–3396; email kenneth.ready@ CFM56–3, CFM56–3B, and CFM56–3C at FAA, Engine & Propeller Directorate, 1200 faa.gov. turbofan engines, modified by Supplemental District Avenue, Burlington, MA 01803. For Type Certificate SE00034EN, with a high- information on the availability of this SUPPLEMENTARY INFORMATION: pressure turbine (HPT) disk, part number (P/ material at the FAA, call 781–238–7125. Authority for This Rulemaking N) 880026, serial number (S/N) (5) You may view this service information GKLBAA9307, GKLBAA9335, GKLBAA9404, at the National Archives and Records The FAA’s authority to issue rules on GKLBAA9407, or GKLBAA9409, installed. Administration (NARA). For information on aviation safety is found in Title 49 of the
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United States Code. Subtitle I, Section transitioning to or from a destination or (TRB), a research project was initiated 106 describes the authority of the FAA point of landing. In addition, the rule is through the Airport Cooperative Administrator. Subtitle VII, Aviation based on a voluntary VFR route that was Research Program (ACRP) to provide Programs, describes in more detail the developed by the FAA, working with helicopter noise-modeling guidance. scope of the agency’s authority. the Eastern Region Helicopter Council. The project reviewed, evaluated, and The FAA has broad authority and The voluntary route originally was documented current helicopter noise responsibility to regulate the operation added to the Chart on May 8, 2008. prediction models and identified of aircraft, the use of the navigable The rule originally had a two-year potential improvements to AEDT to airspace and to establish safety duration and was set to terminate on better capture the unique complexity of standards for and regulate the August 6, 2014. The FAA limited the helicopter operations. The research was certification of airmen, aircraft, and air duration of the rule because, at the time published in January 2016. The FAA is carriers. (49 U.S.C. 40104 et seq., of promulgation, the FAA did not have currently reviewing the findings and 40103(b)). The FAA’s authority for this data on the current rate of compliance will consider making modeling rule is contained in 49 U.S.C. 40103 and with the voluntary route nor the improvements in AEDT based on those 44715. Under section 40103, the circumstances surrounding an findings. Improved modeling will allow Administrator of the FAA has authority operator’s decision not to use the route. better quantification of the noise to ‘‘prescribe air traffic regulations on The FAA concluded there would be no impacts of helicopter operations and the flight of aircraft (including reason to retain the rule if the FAA better inform decisions on measures to regulations on safe altitudes) for . . . (B) determined the noise situation along the abate helicopter-noise impacts. protecting individuals and property on North Shore of Long Island did not The FAA’s Center of Excellence, the ground. (49 U.S.C. 40103(b)(2)(B)). improve. Accordingly, the Agency called the Aviation Sustainability In addition, section 44715(a), provides decided that the rule would expire in Center (ASCENT), has funded that to ‘‘relieve and protect the public two years, if it was determined there is Pennsylvania State University to health and welfare from aircraft noise,’’ no meaningful improvement in the conduct modeling of helicopters to the Administrator of the FAA, ‘‘as he effects of helicopter noise on quality of identify potential noise-abatement deems necessary, shall prescribe . . . life or that the rule was otherwise procedures that may result in quieter (ii) regulations to control and abate unjustified. Specifically, the FAA stated operations. The first phase of this aircraft noise . . .’’ that should there be such an project focuses on integrating the tools improvement, the FAA may, after needed to predict helicopter-source Good Cause for Immediate Adoption appropriate notice and opportunity for noise and providing the necessary Without Prior Notice comment, decide to make the rule integration within AEDT to be able to Section 553(d)(3) of the permanent. Likewise, should the FAA illustrate potential noise impacts of Administrative Procedure Act requires determine that reasonable modification such noise abatement procedures. The that agencies publish a rule not less could be made to the route to better second phase of the project is focused than 30 days before its effective date, address noise concerns (and any other on developing noise-abatement except as otherwise provided by the relevant concerns), the FAA may choose procedures for either individual agency for good cause found and to modify the rule after notice and helicopters or classes of helicopters. published with the rule. The current comment. These phases of the research are rule expires on August 6, 2016. To On June 23, 2014, the FAA issued a scheduled to be completed by August prevent confusion among pilots using two-year extension of the rule’s 2017. At that time, the FAA will need the route and avoid disruption of the termination date to provide additional to determine whether to initiate and current operating environment, the FAA time for the Agency to assess the rule’s support flight tests during 2018, which finds that good cause exists to make this impact and consider whether to make would be necessary prior to advancing rule effective in less than 30 days. the mandatory use of the route the use of the procedures with I. Background permanent (79 FR 35488). Since then, helicopter operators. the FAA has been engaged in a variety The FAA is also engaged in research In response to concerns from a large of helicopter research initiatives that and collaboration with helicopter number of local residents regarding could inform the Agency’s future operators, seeking to educate pilots on noise from helicopters operating over actions on this rule. Topics addressed the benefits of noise-abatement Long Island, the FAA issued the New by these research efforts, described in procedures, when to institute them, and York North Shore Helicopter Route final more detail below, include modeling of the piloting procedures for achieving rule (77 FR 39911, July 6, 2012). The helicopter performance and noise, quieter operations. This project rule requires civil helicopter pilots helicopter noise-abatement procedures, addresses noted issues by developing a operating Visual Flight Rules (VFR), and community response to helicopter strategy for pilot awareness of noise- whose route of flight takes them over noise. abatement techniques, looking at ways the north shore of Long Island between The FAA has initiated efforts to to illustrate the benefits through the Visual Point Lloyd Harbor (VPLYD) improve helicopter performance- modeling, and examining the potential waypoint and Orient Point (VPOLT), to modeling capabilities for more accurate for video training on how to incorporate use the North Shore Helicopter Route, operational impact analysis. This noise-abatement procedures. This as published in the New York research is scheduled to be completed research will utilize the findings of the Helicopter Chart (‘‘the Chart’’). The rule in 2016, with an implementation plan ASCENT project described above. was promulgated to maximize use of the for incorporation into the FAA’s Finally, the FAA has two projects to route, as published per the Chart, to Aviation Environmental Design Tool review methodologies to determine secure and improve upon decreased (AEDT).1 Also, through the National community response to helicopter levels of noise that had been voluntarily Academies of Science, Engineering, and operations. One project is administered achieved. Under the rule, pilots are Medicine Transportation Review Board through the ACRP. The objectives of the permitted to deviate from the route and ACRP research project are to: (1) altitude requirements when necessary 1 AEDT is the FAA’s tool for computing noise, Determine the significance of acoustical for safety, weather conditions, or emissions and fuel burn. and non-acoustical factors that
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influence community annoyance to regulation only upon a reasoned B. Regulatory Flexibility Determination helicopter noise, (2) describe how these determination that the benefits of the The Regulatory Flexibility Act of 1980 factors compare to those contributing to intended regulation justify its costs. (Pub. L. 96–354) (RFA) establishes ‘‘as a fixed-wing aircraft community Second, the Regulatory Flexibility Act principle of regulatory issuance that annoyance, and (3) develop and validate of 1980 (Pub. L. 96–354) requires agencies shall endeavor, consistent with a research method to relate helicopter- agencies to analyze the economic the objectives of the rule and of noise exposure to surveyed community impact of regulatory changes on small applicable statutes, to fit regulatory and annoyance. This project is two-thirds entities. Third, the Trade Agreements informational requirements to the scale Act (Pub. L. 96–39) prohibits agencies complete, and ACRP expects the project of the businesses, organizations, and from setting standards that create to be completed in late 2016. Further, governmental jurisdictions subject to unnecessary obstacles to the foreign the FAA has initiated a second project regulation.’’ To achieve this principle, commerce of the United States. In in an effort to test a different agencies are required to solicit and developing U.S. standards, the Trade methodology for gathering information consider flexible regulatory proposals Act requires agencies to consider on community annoyance for residents and to explain the rationale for their international standards and, where in the vicinity of helicopter operations. actions to assure that such proposals are appropriate, that they be the basis of The FAA has gathered data for this given serious consideration.’’ The RFA U.S. standards. Fourth, the Unfunded project, and the analysis is underway. covers a wide range of small entities, Mandates Reform Act of 1995 (Pub. L. The goal is to report on the methodology including small businesses, not-for- in late 2016, and when completed, it 104–4) requires agencies to prepare a written assessment of the costs, benefits, profit organizations, and small will provide an alternative method for governmental jurisdictions. developing an annoyance survey for and other effects of proposed or final rules that include a Federal mandate Agencies must perform a review to helicopters. determine whether a rule will have a Both of these projects provide an likely to result in the expenditure by State, local, or tribal governments, in the significant economic impact on a opportunity for the FAA to compare substantial number of small entities. If methodologies and determine the most aggregate, or by the private sector, of $100 million or more annually (adjusted the agency determines that it will, the effective approach for conducting a agency must prepare a regulatory helicopter noise-annoyance survey. At for inflation with base year of 1995). This portion of the preamble flexibility analysis as described in the the completion of the projects, the FAA RFA. However, if an agency determines intends to select the most effective, summarizes the FAA’s analysis of the economic impacts of this final rule. that a rule is not expected to have a survey methodology and determine if a significant economic impact on a larger scale, community survey would Department of Transportation Order DOT 2100.5 prescribes policies and substantial number of small entities, better inform the FAA on appropriate section 605(b) of the RFA provides that methods to address concerns over procedures for simplification, analysis, and review of regulations. If the the head of the agency may so certify helicopter noise. The FAA will then and a regulatory flexibility analysis is consider the need for a comprehensive expected cost impact is so minimal that a proposed or final rule does not not required. The certification must helicopter community annoyance include a statement providing the survey. While the research reaches warrant a full evaluation, this order permits that a statement to that effect factual basis for this determination, and maturity by the end of 2017, applying the reasoning should be clear. the research will take longer. and the basis for it to be included in the preamble if a full regulatory evaluation The FAA believes that this final rule II. The Final Rule of the cost and benefits is not prepared. does not have a significant economic impact on a substantial number of small This final rule extends for an Such a determination has been made for entities for the following reasons. With additional four years (i.e., to August 6, this final rule. The reasoning for this this final rule, the regulatory provisions 2020) the requirement for pilots of civil determination follows: already in place will be extended four helicopters to use the North Shore This final rule extends for an years to provide the FAA with sufficient Helicopter Route when transiting along additional four years (i.e., to August 6, time to consider results of the described the north shore of Long Island. The FAA 2020) the requirement for pilots of civil research efforts in determining expects that four years will be sufficient helicopters to use the North Shore Helicopter Route when transiting along appropriate future actions on the rule. time to consider results of the described the north shore of Long Island. The final regulatory flexibility analysis research efforts in determining Extending the current rule for four years for the 2012 final rule determined that appropriate future actions on the rule. is expected to provide the FAA with it had a minimal cost impact on a Extending the requirement to use the sufficient time to consider results of the substantial number of small entities. North Shore Helicopter Route during described research efforts in This final rule extends those this period will continue to foster determining appropriate future actions requirements. Thus, the FAA expects a maximum use of the North Shore on the rule. The FAA determined the minimal economic impact on a Helicopter Route and avoid disruption 2012 final rule would impose minimal substantial number of small entities. of the current operating environment. costs because many of the existing Therefore, as provided in section Therefore, the FAA finds that a four- operators were already complying with 605(b), the head of the FAA certifies year extension of the current rule is the final rule requirements. As this final that this rulemaking will not result in a warranted. rule extends those requirements, the significant economic impact on a III. Regulatory Notices and Analyses FAA expects this final rule imposes substantial number of small entities. only minimal costs. A. Regulatory Evaluation The FAA has, therefore, determined C. International Trade Impact Changes to Federal regulations must that this final rule is not a ‘‘significant Assessment undergo several economic analyses. regulatory action’’ as defined in section The Trade Agreements Act of 1979 First, Executive Order 12866 and 3(f) of Executive Order 12866, and is not (Pub. L. 96–39), as amended by the Executive Order 13563 direct that each ‘‘significant’’ as defined in DOT’s Uruguay Round Agreements Act (Pub. Federal agency shall propose or adopt a Regulatory Policies and Procedures. L. 103–465), prohibits Federal agencies
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from establishing standards or engaging cooperation to meet shared challenges 2. Visiting the FAA’s Regulations and in related activities that create involving health, safety, labor, security, Policies Web page at http:// unnecessary obstacles to the foreign environmental, and other issues and to www.faa.gov/regulations_policies or commerce of the United States. reduce, eliminate, or prevent 3. Accessing the Government Printing Pursuant to these Acts, the unnecessary differences in regulatory Office’s Web page at http:// establishment of standards is not requirements. The FAA has analyzed www.gpo.gov/fdsys/. considered an unnecessary obstacle to this action under the policies and Copies may also be obtained by the foreign commerce of the United agency responsibilities of Executive sending a request to the Federal States, so long as the standard has a Order 13609, and has determined that Aviation Administration, Office of legitimate domestic objective, such as this action would have no effect on Rulemaking, ARM–1, 800 Independence the protection of safety, and does not international regulatory cooperation. operate in a manner that excludes Avenue SW., Washington, DC 20591, or imports that meet this objective. The G. Environmental Analysis by calling (202) 267–9680. Commenters statute also requires consideration of FAA Order 1050.1F, ‘‘Environmental must identify the docket or amendment international standards and, where Impacts: Policies and Procedures,’’ number of this rulemaking. appropriate, that they be the basis for identifies FAA actions that, in the All documents the FAA considered in U.S. standards. The FAA has assessed absence of extraordinary circumstances, developing this rulemaking action, the potential effect of this final rule and are categorically excluded from including economic analyses and determined that the rule will preserve requiring an environmental assessment technical reports, may be accessed from the current operating environment and (EA) or environmental impact statement the Internet through the Federal is not considered an unnecessary (EIS) under the National Environmental eRulemaking Portal referenced in item obstacle to foreign commerce. Policy Act. This rule qualifies for the (1) above. categorical exclusion in paragraph 5– D. Unfunded Mandates Assessment B. Small Business Regulatory 6.6.f of that Order, which includes Enforcement Fairness Act Title II of the Unfunded Mandates ‘‘[r]egulations. . . excluding those that Reform Act of 1995 (Pub. L. 104–4) if implemented may cause a significant The Small Business Regulatory requires each Federal agency to prepare impact on the human environment. Enforcement Fairness Act (SBREFA) of a written statement assessing the effects There are no extraordinary 1996 requires FAA to comply with of any Federal mandate in a proposed or circumstances that warrant preparation small entity requests for information or final agency rule that may result in an of an EA or EIS. advice about compliance with statutes expenditure of $100 million or more (in IV. Executive Order Determinations and regulations within its jurisdiction. 1995 dollars) in any one year by State, A small entity with questions regarding local, and tribal governments, in the A. Executive Order 13132, Federalism this document, may contact its local aggregate, or by the private sector; such The FAA has analyzed this final rule FAA official, or the person listed under a mandate is deemed to be a ‘‘significant under the principles and criteria of the FOR FURTHER INFORMATION CONTACT regulatory action.’’ The FAA currently Executive Order 13132, Federalism. The heading at the beginning of the uses an inflation-adjusted value of $155 agency determined that this action will preamble. To find out more about million in lieu of $100 million. This not have a substantial direct effect on SBREFA on the Internet, visit http:// final rule does not contain such a the States, or the relationship between www.faa.gov/regulations_policies/ mandate; therefore, the requirements of the Federal Government and the States, rulemaking/sbre_act/. Title II of the Act do not apply. or on the distribution of power and List of Subjects in 14 CFR Part 93 E. Paperwork Reduction Act responsibilities among the various The Paperwork Reduction Act of 1995 levels of government, and, therefore, Air traffic control, Airspace, (44 U.S.C. 3507(d)) requires that the does not have Federalism implications. Navigation (air). FAA consider the impact of paperwork B. Executive Order 13211, Regulations The Amendment and other information collection That Significantly Affect Energy Supply, burdens imposed on the public. The Distribution, or Use In consideration of the foregoing, the FAA has determined that there is no Federal Aviation Administration The FAA analyzed this final rule new requirement for information amends chapter I of Title 14 of the Code under Executive Order 13211, Actions collection associated with this final of Federal Regulations as follows: Concerning Regulations that rule. Significantly Affect Energy Supply, PART 93–SPECIAL AIR TRAFFIC F. International Compatibility and Distribution, or Use (May 18, 2001). The RULES Cooperation agency has determined that it is not a In keeping with U.S. obligations ‘‘significant energy action’’ under the ■ 1. The authority citation for part 93 under the Convention on International executive order and it is not likely to continues to read as follows: Civil Aviation, it is FAA policy to have a significant adverse effect on the supply, distribution, or use of energy. Authority: 49 U.S.C. 106(g), 40103, 40106, conform to International Civil Aviation 40109, 40113, 44502, 44514, 44701, 44715, Organization (ICAO) Standards and V. How To Obtain Additional 44719, 46301. Recommended Practices to the Information maximum extent practicable. The FAA ■ 2. Add § 93.101 to read as follows: has determined that there are no ICAO A. Availability of Rulemaking § 93.101 Applicability. Standards and Recommended Practices Documents that correspond to these proposed An electronic copy of rulemaking This subpart prescribes a special air regulations. documents may be obtained from the traffic rule for civil helicopters Executive Order 13609, Promoting Internet by— operating VFR along the North Shore, International Regulatory Cooperation, 1. Searching the Federal eRulemaking Long Island, New York, between August promotes international regulatory Portal (http://www.regulations.gov); 6, 2012, and August 6, 2020.
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Issued under authority provided by 49 II. Background Information and location of first responders and public U.S.C. 106(f), 44701(a), and 44703 in Regulatory History safety vessels that may require the Washington, DC, on July 15, 2016. bridge to open at any time to perform Michael P. Huerta, On May 6, 2016, we published a notice of proposed rulemaking (NPRM) rescue or emergency operations on Lake Administrator. entitled Drawbridge Operation Winnebago. Vessels in distress or [FR Doc. 2016–17427 Filed 7–22–16; 8:45 am] Regulation; Fox River, DePere to seeking shelter from weather on Lake BILLING CODE 4910–13–P Oshkosh, WI, in the Federal Register Winnebago may also need the CN–RR bridge to open at any time. A delay in (81 FR 27373). We did receive one bridge openings at this location may comment on this rule. DEPARTMENT OF HOMELAND endanger life or property and is SECURITY III. Legal Authority and Need for Rule therefore exempted from the proposed The Coast Guard is issuing this rule 2-hour advance notice requirement from Coast Guard under authority 33 U.S.C. 499. vessels for all other drawbridges Currently, the regulation for Fox River between midnight and 8 a.m. All drawbridges would be required to 33 CFR Part 117 drawbridges (33 CFR 117.1087) includes open if at least 12-hours advance notice the opening schedule for drawbridges in [Docket No. USCG–2016–0256] is provided prior to passing between Green Bay, WI, where large commercial RIN 1625–AA09 October 8 and April 26 each year. vessel traffic continues to transit. This This rule removes the George Street Drawbridge Operation Regulation; Fox rule does not include any changes to the bridge from the regulation, establishes River, DePere to Oshkosh, WI schedules for drawbridges over the consistent annual dates for drawbridge commercial ship channel in Green Bay. schedules between river miles 7.13 and AGENCY: Coast Guard, DHS. The sections of the current regulation 58.3, eliminates currently exempted ACTION: Final rule. that includes all other drawbridges bridge opening times during certain between river mile 7.13 in DePere, WI days and times in Oshkosh, makes SUMMARY: The Coast Guard is modifying at the DePere Pedestrian bridge, to river permanent the requirement for vessels the operating schedule for all mile 58.3 in Oshkosh, WI, describe to provide 2-hours advance notice drawbridges over the Fox River between inconsistent dates and times for between midnight and 8 a.m., and DePere, WI and Oshkosh, WI. This rule required drawbridge openings, establishes the winter bridge operating will establish drawbridge schedules that particularly for the four highway schedules throughout the entire river coincide with lock schedules during the drawbridges in Oshkosh. They also system. boating season and standard winter include reference to the George Street The dates, times, and conditions have drawbridge schedules. bridge at mile 7.27. The George Street been employed by local authorities for DATES: This rule is effective August 24, bridge has been removed in the past 15 approximately 10 years and are 2016. years. In the current regulation, the generally accepted by vessel operators ADDRESSES: To view documents Oshkosh drawbridges contain in the area as established conditions. mentioned in this preamble as being exemptions during certain dates and The dates, times, and conditions have available in the docket, go to http:// times where the drawbridges are not also been reviewed and accepted by www.regulations.gov, type USCG–2016– required to open for vessels or vessels WIS–DOT and FRNSA during the 0256. In the ‘‘SEARCH’’ box and click must provide advance notice prior to development of this rule. ‘‘SEARCH.’’ Click on Open Docket passing during nighttime hours. This rule establishes the requirement IV. Discussion of Comments, Changes Folder on the line associated with this and the Final Rule rulemaking. for all drawbridges, except the Canadian National Railroad (CN–RR) bridge at The Coast Guard provided a comment FOR FURTHER INFORMATION CONTACT: If mile 55.72 in Oshkosh, to open on period of 45 days and received one you have questions on this rule, call or signal between the hours of 8 a.m. and comment. Canadian National Railway email Mr. Lee D. Soule, Bridge midnight each day from April 27 to Company (CN–RR) wished to clarify for Management Specialist, Ninth Coast October 7 every year. This schedule will the record that the bridge described in Guard District; telephone 216–902– match the lock schedule established by the NPRM as the ‘‘CN–RR bridge at Mile 6085, email [email protected]. FRNSA and drawbridge schedules used 55.72 over Fox River in Oshkosh, WI’’ SUPPLEMENTARY INFORMATION: by WIS–DOT. Between the hours of should reflect Wisconsin Central Ltd. as I. Table of Abbreviations midnight and 8 a.m., except for the CN– the entity holding common carrier RR bridge in Oshkosh, all drawbridges responsibilities at this location. The CFR Code of Federal Regulations would open for vessels if at least 2- Coast Guard recognizes that Wisconsin DHS Department of Homeland Security hours advance notice of arrival is Central, Ltd. is owned by CN–RR, but E.O. Executive Order FR Federal Register provided. for consistency in describing bridge NEPA National Environmental Policy Act The CN–RR bridge at mile 55.72 in owners throughout the Fox River system of 1969 Oshkosh is located where Fox River in official publications, and since the NPRM Notice of proposed rulemaking feeds into the southwest section of Lake bridges are locally known and referred RFA Regulatory Flexibility Act of 1980 Winnebago. The portion of Fox River in to as ‘‘Canadian National’’ bridges, we SNPRM Supplemental notice of proposed the Oshkosh area, and Lake Winnebago, will continue to describe the railroad rulemaking are among the busiest portions of the drawbridge at Mile 55.72 in Oshkosh as Pub. L. Public Law Fox River System for recreational vessel the CN–RR bridge. § Section traffic. The CN–RR bridge provides 6 Additionally, CN–RR commented on U.S.C. United States Code WIS–DOT Wisconsin Department of feet of vertical clearance in the closed the disparity of proposed bridge Transportation position and prevents most vessels from operations between nearby highway FRNSA Fox River Navigational System passing under the bridge, thereby bridges and the CN–RR bridge at Mile Authority requiring the drawbridge to open 55.72 in Oshkosh, WI. The NPRM CN–RR Canadian National Railroad regularly for vessels. This is also the excluded the CN–RR bridge at Mile
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55.72 in Oshkosh from operating with comments from the Small Business principles and preemption requirements the same schedule as the nearby Administration on this rule. The Coast described in Executive Order 13132. highway bridges requiring 2-hours Guard certifies under 5 U.S.C. 605(b) Also, this rule does not have tribal advance notice for openings between that this rule would not have a implications under Executive Order the hours of midnight and 8am due to significant economic impact on a 13175, Consultation and Coordination the low vertical clearance (6-feet) of the substantial number of small entities. with Indian Tribal Governments, bridge in the closed position that This rule standardizes drawbridge because it would not have a substantial restricts most vessels from passing schedules that have been in place and direct effect on one or more Indian underneath, the proximity of the CN–RR would not have a significant economic tribes, on the relationship between the bridge at the entrance to Fox River from impact on any vessel owner or operator Federal Government and Indian tribes, Lake Winnebago, the location of nearby because the bridges will open with or on the distribution of power and first-responders, and the need to open advance notice during low traffic times responsibilities between the Federal for vessels seeking shelter from weather on the waterway or when ice conditions Government and Indian tribes. on Lake Winnebago. The exclusion of hinder normal navigation. the CN–RR bridge from the same While some owners or operators of E. Unfunded Mandates Reform Act conditions as the nearby highway vessels intending to transit the bridges The Unfunded Mandates Reform Act bridges in Oshkosh is due to safety may be small entities, for the reasons of 1995 (2 U.S.C. 1531–1538) requires concerns for vessel operators and is stated in section V.A above, this rule Federal agencies to assess the effects of retained in this final rule. would not have a significant economic their discretionary regulatory actions. In impact on any vessel owner or operator. V. Regulatory Analyses particular, the Act addresses actions Under section 213(a) of the Small that may result in the expenditure by a Business Regulatory Enforcement We developed this rule after State, local, or tribal government, in the Fairness Act of 1996 (Public Law 104– considering numerous statutes and aggregate, or by the private sector of 121), we want to assist small entities in Executive Orders related to rulemaking. $100,000,000 (adjusted for inflation) or understanding this rule. If the rule Below we summarize our analyses more in any one year. Though this rule would affect your small business, based on a number of these statutes and will not result in such an expenditure, organization, or governmental Executive Orders, and we discuss First we do discuss the effects of this rule jurisdiction and you have questions Amendment rights of protesters. elsewhere in this preamble. concerning its provisions or options for A. Regulatory Planning and Review compliance, please contact the person F. Environment Executive Orders 12866 and 13563 listed in the FOR FURTHER INFORMATION We have analyzed this rule under direct agencies to assess the costs and CONTACT, above. Small businesses may Department of Homeland Security benefits of available regulatory send comments on the actions of Management Directive 023–01 and alternatives and, if regulation is Federal employees who enforce, or Commandant Instruction M16475.lD, necessary, to select regulatory otherwise determine compliance with, which guides the Coast Guard in approaches that maximize net benefits. Federal regulations to the Small complying with the National Executive Order 13563 emphasizes the Business and Agriculture Regulatory Environmental Policy Act of 1969 importance of quantifying both costs Enforcement Ombudsman and the (NEPA)(42 U.S.C. 4321–4370f), and and benefits, of reducing costs, of Regional Small Business Regulatory have made a determination that this harmonizing rules, and of promoting Fairness Boards. The Ombudsman action is one of a category of actions flexibility. This rule has not been evaluates these actions annually and which do not individually or designated a ‘‘significant regulatory rates each agency’s responsiveness to cumulatively have a significant effect on action,’’ under Executive Order 12866. small business. If you wish to comment the human environment. This rule Accordingly, it has not been reviewed on actions by employees of the Coast simply promulgates the operating by the Office of Management and Guard, call 1–888–REG–FAIR (1–888– regulations or procedures for Budget. 734–3247). The Coast Guard will not drawbridges. This action is categorically This regulatory action determination retaliate against small entities that excluded from further review, under is based on the ability that vessels can question or complain about this rule or figure 2–1, paragraph (32)(e), of the still transit the bridge given advanced any policy or action of the Coast Guard. notice during times when vessel traffic Instruction. is at its lowest. This rule provides a C. Collection of Information Under figure 2–1, paragraph (32)(e), of drawbridge schedule that is virtually the This rule calls for no new collection the Instruction, an environmental same as has been used by vessel of information under the Paperwork analysis checklist and a categorical operators in the area for approximately Reduction Act of 1995 (44 U.S.C. 3501– exclusion determination are not 10 years. 3520). required for this rule. B. Impact on Small Entities D. Federalism and Indian Tribal G. Protest Activities The Regulatory Flexibility Act of 1980 Government The Coast Guard respects the First (RFA), 5 U.S.C. 601–612, as amended, A rule has implications for federalism Amendment rights of protesters. requires federal agencies to consider the under Executive Order 13132, Protesters are asked to contact the potential impact of regulations on small Federalism, if it has a substantial direct person listed in the FOR FURTHER entities during rulemaking. The term effect on the States, on the relationship INFORMATION CONTACT section to ‘‘small entities’’ comprises small between the national government and coordinate protest activities so that your businesses, not-for-profit organizations the States, or on the distribution of message can be received without that are independently owned and power and responsibilities among the jeopardizing the safety or security of operated and are not dominant in their various levels of government. We have people, places or vessels. fields, and governmental jurisdictions analyzed this rule under that Order and List of Subjects in 33 CFR Part 117 with populations of less than 50,000. have determined that it is consistent The Coast Guard did not receive any with the fundamental federalism Bridges.
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For the reasons discussed in the mooring or anchoring within the safety effective less than 30 days after preamble, the Coast Guard amends 33 zone unless authorized by Captain of publication in the Federal Register. CFR part 117 as follows: the Port (COTP), Sector Long Island III. Legal Authority and Need for Rule Sound. PART 117—DRAWBRIDGE The legal basis for this temporary rule DATES: This rule is effective without OPERATION REGULATIONS is 33 U.S.C. 1231. actual notice from July 25, 2016 until On December 09, 2015, the Coast ■ 1. The authority citation for part 117 December 31, 2016. For the purposes of Guard was made aware of damage continues to read as follows: enforcement, actual notice from July 1, sustained to Pleasure Beach Bridge, 2016 until July 25, 2016. Authority: 33 U.S.C. 499; 33 CFR 1.05–1; Bridgeport, CT that has created a hazard Department of Homeland Security Delegation ADDRESSES: To view documents to navigation. After further analysis of No. 0170.1. mentioned in this preamble as being the bridge structure, the Coast Guard available in the docket, go to http:// ■ 2. In § 117.1087, revise paragraphs (b) concluded that the overall condition of www.regulations.gov, type USCG–2015– and (c) to read as follows: the structure created a continued hazard 1088 in the ‘‘SEARCH’’ box and click to navigation. The COTP Sector LIS has § 117.1087 Fox River. ‘‘SEARCH.’’ Click on Open Docket determined that the safety zone * * * * * Folder on the line associated with this established by this temporary final rule (b) All drawbridges between mile 7.13 rule. is necessary to provide for the safety of in DePere and mile 58.3 in Oshkosh, FOR FURTHER INFORMATION CONTACT: If life on navigable waterways. except the Canadian National Railroad you have questions on this rule, contact IV. Discussion of the Rule bridge at mile 55.72, shall open as Petty Officer Jay TerVeen, Prevention follows: Department, U.S. Coast Guard Sector The safety zone established by this (1) From April 27 through October 7, Long Island Sound, telephone (203) rule will cover all navigable waters of the draws shall open on signal, except 468–4446, email Jay.C.TerVeen@ the entrance channel to Johnsons Creek between the hours of midnight and 8 uscg.mil in the vicinity of Pleasure Beach Bridge, a.m., the draws shall open if at least 2- SUPPLEMENTARY INFORMATION: Bridgeport, CT. This safety zone will be hours advance notice is given. bound inside an area that starts at a (2) From October 8 through April 26, I. Table of Abbreviations point on land at position 41–10.2N, the draws shall open if at least 12-hours COTP Captain of the Port 073–10.7W and then east along the advance notice is given. DHS Department of Homeland Security shoreline to a point on land at position (c) The draw of the Canadian National FR Federal Register 41–9.57N, 073–9.54W and then south Railroad bridge at mile 55.72 shall open LIS Long Island Sound across the channel to a point on land at on signal, except from October 8 NPRM Notice of Proposed Rulemaking position 41–9.52N, 073–9.58W and then through April 26; the draw shall open NAD 83 North American Datum 1983 west along the shoreline to a point on if at least 12-hours advance notice is II. Background Information and land at position 41–9.52N, 073–10.5W given. Regulatory History and then north across the channel back * * * * * to the point of origin. The Coast Guard was made aware of This rule prohibits vessels from Dated: July 12, 2016. damage to Pleasure Beach Bridge which entering, transiting, mooring, or J.E. Ryan, creates a hazard to navigation. A anchoring within the area specifically Rear Admiral, U.S. Coast Guard, Commander, temporary final rule entitled, ‘‘Safety designated as a safety zone during the Ninth Coast Guard District. Zone; Pleasure Beach Bridge, period of enforcement unless authorized [FR Doc. 2016–17541 Filed 7–22–16; 8:45 am] Bridgeport, CT’’ was published in the by the COTP or designated BILLING CODE 9110–04–P Federal Register (80 FR 79480). representative. The Coast Guard is issuing this The Coast Guard will notify the temporary final rule without prior public and local mariners of this safety DEPARTMENT OF HOMELAND notice and opportunity to comment zone through appropriate means, which SECURITY pursuant to authority under section 4(a) may include, but are not limited to, of the Administrative Procedure Act publication in the Federal Register, the Coast Guard (APA) (5 U.S.C. 553(b)). This provision Local Notice to Mariners, and Broadcast authorizes an agency to issue a rule Notice to Mariners. 33 CFR Part 165 without prior notice and opportunity to V. Regulatory Analyses [Docket Number USCG–2015–1088] comment when the agency for good cause finds that those procedures are We developed this rule after RIN 1625–AA00 ‘‘impracticable, unnecessary, or contrary considering numerous statutes and to the public interest.’’ Under 5 U.S.C. Safety Zone; Pleasure Beach Bridge, executive orders related to rulemaking. 553(b)(B), the Coast Guard finds that Bridgeport, CT Below we summarize our analyses good cause exists for not publishing an based on these statutes and executive AGENCY: Coast Guard, DHS. NPRM with respect to this rule because orders and we discuss First Amendment ACTION: Temporary final rule. doing so would be impracticable, given rights of protestors. the imminent conclusion of the SUMMARY: The Coast Guard is previous safety zone and the ongoing A. Regulatory Planning and Review establishing a temporary safety zone on repairs. This rule is necessary to protect Executive Orders 12866 and 13563 the navigable waters of Pleasure Beach, the safety of waterway users. direct agencies to assess the costs and Bridgeport, CT for Pleasure Beach We are issuing this rule, and under 5 benefits of available regulatory Bridge. This temporary safety zone is U.S.C. 553(d)(3), and for the same alternatives and, if regulation is necessary to provide for the safety of life reasons stated in the preceding necessary, to select regulatory on navigable waters. This regulation paragraph, the Coast Guard finds that approaches that maximize net benefits. prohibits entry into, transit through, good cause exists for making this rule Executive Order 13563 emphasizes the
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importance of quantifying both costs employees of the Coast Guard, call 1– determined that this action is one of a and benefits, of reducing costs, of 888–REG–FAIR (1–888–734–3247). The category of actions that do not harmonizing rules, and of promoting Coast Guard will not retaliate against individually or cumulatively have a flexibility. This rule has not been small entities that question or complain significant effect on the human designated a ‘‘significant regulatory about this proposed rule or any policy environment. This temporary rule action,’’ under Executive Order 12866. or action of the Coast Guard. involves the establishment of a safety Accordingly, it has not been reviewed zone. It is categorically excluded from C. Collection of Information by the Office of Management and further review under paragraph 34(g) of Budget. The Coast Guard determined This rule will not call for a new Figure 2–1 of the Commandant that this rulemaking is not a significant collection of information under the Instruction. An environmental analysis regulatory action for the following Paperwork Reduction Act of 1995 (44 checklist supporting this determination, reasons: 1) persons or vessels desiring to U.S.C. 3501–3520). a Categorical Exclusion Determination, enter the safety zone may do so with D. Federalism and Indian Tribal and EA Checklist, will be in the docket permission from the COTP Sector LIS or Governments for review. We seek any comments or a designated representative; and 2) the information that may lead to the Coast Guard will notify the public of the A rule has implications for federalism discovery of a significant environmental enforcement of this rule via appropriate under Executive Order 13132, impact from this rule. means, such as via Local Notice to Federalism, if it has a substantial direct Mariners and Broadcast Notice to effect on the States, on the relationship G. Protest Activities Mariners to increase public awareness between the national government and The Coast Guard respects the First of this safety zone. the States, or on the distribution of Amendment rights of protesters. power and responsibilities among the Protesters are asked to contact the B. Impact on Small Entities various levels of government. We have person listed in the FOR FURTHER The Regulatory Flexibility Act of analyzed this rule under that order and INFORMATION CONTACT section to 1980, 5 U.S.C. 601–612, as amended, have determined that it is consistent coordinate protest activities so that your requires Federal agencies to consider with the fundamental federalism message can be received without the potential impact of regulations on principles and preemption requirements jeopardizing the safety or security of small entities during rulemaking. The described in Executive Order 13132. people, places, or vessels. term ‘‘small entities’’ comprises small Also, this rule does not have tribal businesses, not-for-profit organizations implications under Executive Order List of Subjects in 33 CFR Part 165 that are independently owned and 13175, Consultation and Coordination Harbors, Marine safety, Navigation operated and are not dominant in their with Indian Tribal Governments, (water), Reporting and recordkeeping fields, and governmental jurisdictions because it does not have a substantial requirements, Security measures, with populations of less than 50,000. direct effect on one or more Indian Waterways. The Coast Guard certifies under 5 U.S.C. tribes, on the relationship between the For the reasons discussed in the 605(b) that this rule will not have a Federal Government and Indian tribes, preamble, the Coast Guard amends 33 significant economic impact on a or on the distribution of power and CFR part 165 as follows: substantial number of small entities. responsibilities between the Federal While some owners or operators of Government and Indian tribes. If you PART 165—REGULATED NAVIGATION vessels intending to transit the safety believe this rule has implications for AREAS AND LIMITED ACCESS AREAS zone may be small entities, for the federalism or Indian tribes, please ■ reasons stated in section V.A above, this contact the person listed in the FOR 1. The authority citation for part 165 rule will not have a significant FURTHER INFORMATION CONTACT section continues to read as follows: economic impact on any vessel owner above. Authority: 33 U.S.C. 1231; 50 U.S.C. 191; or operator. 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; Under section 213(a) of the Small E. Unfunded Mandates Reform Act and Department of Homeland Security Business Regulatory Enforcement The Unfunded Mandates Reform Act Delegation No. 0170.1. Fairness Act of 1996 (Public Law 104– of 1995 (2 U.S.C. 1531–1538) requires ■ 2. Add § 165.T01–0503 to read as 121), we want to assist small entities in Federal agencies to assess the effects of follows: understanding this rule. If the rule their discretionary regulatory actions. In would affect your small business, particular, the Act addresses actions § 165.T01–0503 Safety Zone; Pleasure organization, or governmental that may result in the expenditure by a Beach Bridge, Bridgeport, CT. jurisdiction and you have questions State, local, or tribal government, in the (a) Location. The following area is a concerning its provisions or options for aggregate, or by the private sector of safety zone: All navigable waters of the compliance, please contact the person $100,000,000 (adjusted for inflation) or entrance channel to Johnsons Creek in listed in the FOR FURTHER INFORMATION more in any one year. Though this rule the vicinity of Pleasure Beach Bridge, CONTACT section. will not result in such an expenditure, Bridgeport, CT bound inside an area Small businesses may send comments we do discuss the effects of this rule that starts at a point on land at position on the actions of Federal employees elsewhere in this preamble. 41°10′02.964″ N., 073°10′08.148″ W. and who enforce, or otherwise determine then east along the shoreline to a point compliance with, Federal regulations to F. Environment on land at position 41°09′57.996″ N., the Small Business and Agriculture We have analyzed this rule under 073°09′54.324″ W. and then south Regulatory Enforcement Ombudsman Department of Homeland Security across the channel to a point on land at and the Regional Small Business Management Directive 023–01 and position 41°09′52.524″ N., Regulatory Fairness Boards. The Commandant Instruction M16475.lD, 073°09′58.861″ W. and then west along Ombudsman evaluates these actions which guide the Coast Guard in the shoreline to a point on land at annually and rates each agency’s complying with the National position 41°09′52.776″ N., responsiveness to small business. If you Environmental Policy Act of 1969 (42 073°10′04.944″ W. and then north across wish to comment on actions by U.S.C. 4321–4370f), and have the channel back to the point of origin.
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(b) Enforcement period. This rule will DEPARTMENT OF HOMELAND pursuant to authority under section 4(a) be enforced from 12:00 a.m. on July 1, SECURITY of the Administrative Procedure Act 2016 to 12:00 a.m. January 1, 2017. (APA) (5 U.S.C. 553(b)). This provision Coast Guard (c) Definitions. The following authorizes an agency to issue a rule without prior notice and opportunity to definitions apply to this section: A 33 CFR Part 165 comment when the agency for good ‘‘designated representative’’ is any [Docket No. USCG–2016–0363] cause finds that those procedures are commissioned, warrant, or petty officer ‘‘impracticable, unnecessary, or contrary of the U.S. Coast Guard who has been RIN 1625–AA87 to the public interest.’’ Under 5 U.S.C. designated by the Captain of the Port 553(b)(B), the Coast Guard finds that (COTP), Sector Long Island Sound, to Security Zone, Delaware River, good cause exists for not publishing a act on his or her behalf. The designated Schuylkill River; Philadelphia, PA notice of proposed rulemaking (NPRM) representative may be on an official AGENCY: Coast Guard, DHS. with respect to this rule because the patrol vessel or may be on shore and final details for the Democratic National ACTION: Temporary Final Rule. will communicate with vessels via Convention were not known until July VHF–FM radio or loudhailer. ‘‘Official SUMMARY: The Coast Guard is 12, 2016. Delaying the effective date by patrol vessels’’ may consist of any Coast establishing temporary security zones in first publishing an NPRM and holding a Guard, Coast Guard Auxiliary, state, or the waters of the Delaware River, comment period would be contrary to local law enforcement vessels assigned Schuylkill River, and Darby Creek, in the rule’s objectives of ensuring safety of or approved by the COTP Sector Long Philadelphia, PA. These temporary life on the navigable waters and Island Sound. In addition, members of zones are intended to restrict vessels protection of the Democratic Nation the Coast Guard Auxiliary may be from portions of the Delaware River, Convention and the accompanying high- present to inform vessel operators of Schuylkill River, and Darby Creek ranking government officials. this regulation. during the Democratic National For similar reasons, under 5 U.S.C. 553(d)(3), the Coast Guard finds that (d) Regulations. (1) The general Convention from July 25, 2016, to July 29, 2016. During the enforcement good cause exists for making this regulations contained in § 165.23 apply. period, no unauthorized vessels or temporary rule effective less than 30 (2) In accordance with the general people will be permitted to enter or days after publication in the Federal regulations in § 165.23, entry into or move within the security zone without Register. movement within this zone is permission from the Captain of the Port III. Legal Authority and Need for Rule prohibited unless authorized by the or his designated representative. This The Coast Guard is issuing this rule COTP, Long Island Sound. security zone is necessary to provide under authority in 33 U.S.C. 1231. The security for the Democratic National (3) Operators desiring to enter or Captain of the Port, Delaware Bay has Convention. operate within the safety zone should determined that these temporary contact the COTP Sector Long Island DATES: This rule is effective from 11:00 security zones are necessary to provide Sound at 203–468–4401 (Sector Sector a.m. on July 25, 2016, to 1:00 a.m. on for the security of the Democratic Long Island Sound Command Center) or July 29, 2016. Nation Convention and the the designated representative via VHF ADDRESSES: To view documents accompanying high-ranking government channel 16 to obtain permission to do mentioned in this preamble as being officials, and to protect against sabotage so. available in the docket, go to http:// or terrorist attacks to human life, (4) Any vessel given permission to www.regulations.gov, type USCG–2016– vessels, mariners, and waterfront enter or operate in the safety zone must 0363 in the ‘‘SEARCH’’ box and click facilities at or near this event. comply with all directions given to ‘‘SEARCH.’’ Click on Open Docket IV. Discussion of the Rule them by the COTP Sector Long Island Folder on the line associated with this rule. The Democratic National Convention Sound, or the designated on-scene will take place in Philadelphia, PA from FOR FURTHER INFORMATION CONTACT: If representative. July 25, 2016 until July 29, 2016. During you have questions on this rule, call or this event many high-ranking (5) Upon being hailed by a U.S. Coast email Petty Officer Tom Simkins, U.S. government officials will be arriving in Guard vessel by siren, radio, flashing Coast Guard, Sector Delaware Bay, Philadelphia, PA. The Coast Guard is light or other means, the operator of the Waterways Management Division, Coast establishing several security zones in vessel shall proceed as directed. Guard; telephone (215)271–4851, email portions of the Delaware River, [email protected]. Dated: June 28, 2016. Schuylkill River, and Darby Creek in E. J. Cubanski, III, SUPPLEMENTARY INFORMATION: Philadelphia, PA. Captain, U. S. Coast Guard, Captain of the I. Table of Abbreviations The first security zone includes all the Port Sector Long Island Sound. waters of the Delaware River from the CFR Code of Federal Regulations [FR Doc. 2016–17543 Filed 7–22–16; 8:45 am] New Jersey shore line, to the DHS Department of Homeland Security Pennsylvania shore line, beginning at BILLING CODE 9110–04–P FR Federal Register NPRM Notice of proposed rulemaking the west end of Little Tinicum Island § Section extending in a Northeasterly direction U.S.C. United States Code and ending at the mouth of the COTP Captain of the Port Schuylkill River; The second security zone includes all II. Background Information and the waters of the Schuylkill River inside Regulatory History a boundary described as 500 yards south The Coast Guard is issuing this of the I–95 Bridge and ending 500 yards temporary final rule without prior north of the George C. Platt Memorial notice and opportunity to comment Bridge.
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The third security zone includes all that are independently owned and 13175, Consultation and Coordination waters of Darby Creek inside a boundary operated and are not dominant in their with Indian Tribal Governments, described as originating from 500 yards fields, and governmental jurisdictions because it does not have a substantial south of the Conrail Railroad Bridge and with populations of less than 50,000 direct effect on one or more Indian ending 100 yards north of the I–95 The Coast Guard certifies under 5 U.S.C. tribes, on the relationship between the Bridge. 605(b) that this rule will not have a Federal Government and Indian tribes, Access to this security zone will be significant economic impact on a or on the distribution of power and restricted while the zone is being substantial number of small entities. responsibilities between the Federal enforced. Only vessels or people While some owners or operators of Government and Indian tribes. If you specifically authorized by the Captain of vessels intending to transit the security believe this rule has implications for the Port, Delaware Bay, or his zone may be small entities, for the federalism or Indian tribes, please designated representative may enter or reasons stated in section V.A above, this contact the person listed in the FOR remain in the regulated area. These rule will not have a significant FURTHER INFORMATION CONTACT section security zones will be enforced with economic impact on any vessel owner above. actual notice by the United States Coast or operator. E. Unfunded Mandates Reform Act Guard representatives on scene, as well Under section 213(a) of the Small as other methods listed in 33 CFR 165.7. Business Regulatory Enforcement The Unfunded Mandates Reform Act Fairness Act of 1996 (Pub. L. 104–121), of 1995 (2 U.S.C. 1531–1538) requires V. Regulatory Analyses we want to assist small entities in Federal agencies to assess the effects of We developed this rule after understanding this rule. If the rule their discretionary regulatory actions. In considering numerous statutes and would affect your small business, particular, the Act addresses actions executive orders (Executive Orders) organization, or governmental that may result in the expenditure by a related to rulemaking. Below we jurisdiction and you have questions State, local, or tribal government, in the summarize our analyses based on a concerning its provisions or options for aggregate, or by the private sector of number of these statutes and Executive compliance, please contact the person $100,000,000 (adjusted for inflation) or Orders, and we discuss First listed in the FOR FURTHER INFORMATION more in any one year. Though this rule Amendment rights of protestors. CONTACT section. will not result in such an expenditure, Small businesses may send comments we do discuss the effects of this rule A. Regulatory Planning and Review on the actions of Federal employees elsewhere in this preamble. Executive Orders 12866 and 13563 who enforce, or otherwise determine F. Environment direct agencies to assess the costs and compliance with, Federal regulations to benefits of available regulatory the Small Business and Agriculture We have analyzed this rule under alternatives and, if regulation is Regulatory Enforcement Ombudsman Department of Homeland Security necessary, to select regulatory and the Regional Small Business Management Directive 023–01 and approaches that maximize net benefits. Regulatory Fairness Boards. The Commandant Instruction M16475.lD, Executive Order 13563 emphasizes the Ombudsman evaluates these actions which guide the Coast Guard in importance of quantifying both costs annually and rates each agency’s complying with the National and benefits, of reducing costs, of responsiveness to small business. If you Environmental Policy Act of 1969(42 harmonizing rules, and of promoting wish to comment on actions by U.S.C. 4321–4370f), and have flexibility. This rule has not been employees of the Coast Guard, call 1– determined that this action is one of a designated a ‘‘significant regulatory 888–REG–FAIR (1–888–734–3247). The category of actions that do not action,’’ under Executive Order 12866. Coast Guard will not retaliate against individually or cumulatively have a Accordingly, it has not been reviewed small entities that question or complain significant effect on the human by the Office of Management and about this rule or any policy or action environment. This rule involves three Budget. of the Coast Guard. security zones which will be enforced This regulatory action determination for less than 12 hours at any one time is based on the size, location, duration, C. Collection of Information and includes all the waters of the and time-of-year of the security zone. This rule calls for no new collection Delaware River from the New Jersey Vessel traffic will be able to safely of information under the Paperwork shore line, to the Pennsylvania shore transit around this security zone which Reduction Act of 1995 (44 U.S.C. 3501– line, beginning at the west end of Little will impact a small designated area of 3520). Tinicum Island extending in a the Delaware River, Schuylkill River, Northeasterly direction and ending at and Darby Creek in Philadelphia, PA for D. Federalism and Indian Tribal the mouth of the Schuylkill River; all less than 12 hours. Moreover, the Coast Governments the waters of the Schuylkill River inside Guard will issue Broadcast Notice to A rule has implications for federalism a boundary described as 500 yards south Mariners via VHF–FM marine channel under Executive Order 13132, of the I–95 bridge and ending 500 yards 16 identifying the security zone Federalism, if it has a substantial direct north of the George C. Platt Memorial locations and describing the process in effect on the States, on the relationship Bridge; and all waters of Darby Creek which vessels can request permission to between the national government and inside a boundary described as 500 transit the security zones. the States, or on the distribution of yards south of the Darby Creek Railroad power and responsibilities among the Bridge and ending 100 yards north of B. Impact on Small Entities various levels of government. We have the I–95 Bridge. The Regulatory Flexibility Act of analyzed this rule under that Order and It is categorically excluded from 1980, 5 U.S.C. 601–612, as amended, have determined that it is consistent further review under paragraph 34(g) of requires Federal agencies to consider with the fundamental federalism Figure 2–1 of the Commandant the potential impact of regulations on principles and preemption requirements Instruction. An environmental analysis small entities during rulemaking. The described in Executive Order 13132. checklist supporting this determination term ‘‘small entities’’ comprises small Also, this rule does not have tribal and a Categorical Exclusion businesses, not-for-profit organizations implications under Executive Order Determination are available in the
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docket where indicated under as a Federal, State, and local officer ADDRESSES: To view documents ADDRESSES. We seek any comments or designated by or assisting the Captain of mentioned in this preamble as being information that may lead to the the Port, Delaware Bay in the available in the docket, go to http:// discovery of a significant environmental enforcement of the security zone. www.regulations.gov, type USCG–2016– impact from this rule. (c) Regulations. (1) Under the general 0678 in the ‘‘SEARCH’’ box and click security zone regulations in subpart D of ‘‘SEARCH.’’ Click on Open Docket G. Protest Activities this part, no person or vessel may enter Folder on the line associated with this The Coast Guard respects the First the security zone described in paragraph rule. Amendment rights of protesters. (a) of this section unless authorized by FOR FURTHER INFORMATION CONTACT: If Protesters are asked to contact the the COTP or the COTP’s designated you have questions on this rule, call or person listed in the FOR FURTHER representative. email LCDR Sean Peterson, Chief of INFORMATION CONTACT section to (2) To seek permission to enter, Prevention, U.S. Coast Guard; telephone coordinate protest activities so that your contact the COTP or the COTP’s 314–269–2332, email Sean.M.Peterson@ message can be received without representative on VHF–FM channel 16. uscg.mil. jeopardizing the safety or security of Those in the security zone must comply SUPPLEMENTARY INFORMATION: people, places or vessels. with all lawful orders or directions I. Table of Abbreviations List of Subjects in 33 CFR Part 165 given to them by the COTP or the COTP’s designated representative. CFR Code of Federal Regulations Harbors, Marine safety, Navigation (d) Enforcement period: This rule is COTP Captain of the Port (water), Reporting and recordkeeping effective from 11:00 a.m. on July 25, DHS Department of Homeland Security requirements, Security measures, 2016, to 1:00 a.m. on July 29, 2016. FR Federal Register Waterways. NPRM Notice of proposed rulemaking Dated: July 19, 2016. For the reasons discussed in the § Section Benjamin A. Cooper, preamble, the Coast Guard amends 33 U.S.C. United States Code CFR part 165 as follows: Captain, U.S. Coast Guard, Captain of the II. Background Information and Port, Delaware Bay. Regulatory History PART 165—REGULATED NAVIGATION [FR Doc. 2016–17440 Filed 7–22–16; 8:45 am] AREAS AND LIMITED ACCESS AREAS BILLING CODE 9110–04–P The Coast Guard is issuing this temporary rule without prior notice and ■ 1. The authority citation for part 165 opportunity to comment pursuant to continues to read as follows: DEPARTMENT OF HOMELAND authority under section 4(a) of the Administrative Procedure Act (APA) (5 Authority: 33 U.S.C. 1231; 50 U.S.C. 191; SECURITY 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; U.S.C. 553(b)). This provision Department of Homeland Security Delegation Coast Guard authorizes an agency to issue a rule No. 0170.1. without prior notice and opportunity to 33 CFR Part 165 comment when the agency finds good ■ 2. Add § 165.T05–0363 to read as cause that those procedures are follows: [Docket Number USCG–2016–0678] ‘‘impracticable, unnecessary, or contrary § 165.T05–0363 Security Zone; Delaware RIN 1625–AA00 to the public interest.’’ Under 5 U.S.C. River, and Schuylkill River; Philadelphia, 553(b)(B), the Coast Guard finds that PA. Safety Zone; Illinois River Mile 69.3 to good cause exists for not publishing a (a) Location. The following areas are 69.8; Meredosia, IL NPRM with respect to this rule because security zones: Ameren, the company performing the (1) The first security zone includes all AGENCY: Coast Guard, DHS. power line operations, notified the the waters of the Delaware River from ACTION: Temporary final rule. Coast Guard on July 8, 2016 of the dates the New Jersey shore line, to the for these operations, requiring Pennsylvania shore line, beginning at SUMMARY: The Coast Guard is helicopters to stretch power lines across the est end of Little Tinicum Island establishing a temporary safety zone for the river. This notice did not allow for extending in a Northeasterly direction certain waters of the Illinois River from the full NPRM process to be completed. and ending at the mouth of the mile 69.3 to mile 69.8. This safety zone Due to the risks associated with power Schuylkill River; is needed to protect persons, property line work crossing the navigational (2) The second security zone includes and infrastructure from potential channel, a safety zone is needed to all the waters of the Schuylkill River damage and safety hazards associated protect persons and property on the inside a boundary described as 500 with work being performed on new waterway. It would be impracticable to yards south of the I–95 Bridge and power lines across the river. Entry of publish a NPRM because the safety zone ending 500 yards north of the George C. vessels or persons into this zone is must be established beginning July 25, Platt Memorial Bridge. prohibited unless specifically 2016. Broadcast Notice to Mariners and (3) The third security zone includes authorized by the Captain of the Port, information sharing with waterway all waters of Darby Creek inside a Upper Mississippi River (COTP). users will update mariners of the safety boundary described as originating 500 Deviation from the safety zone may be zone and enforcement times during the yards south of the Conrail Railroad requested and will be considered on a operations. Bridge and ending 100 yards north of case-by-case basis as specifically We are issuing this rule, and under 5 the I–95 Bridge. authorized by the COTP or a designated U.S.C. 553(d)(3), the Coast Guard finds (b) Definitions. As used in this representative. that good cause exists for making it section, designated representative DATES: This rule is effective from July effective less than 30 days after means a Coast Guard Patrol 25, 2016 through August 16, 2016. This publication in the Federal Register. Commander, including a Coast Guard rule will be enforced from 7 a.m. until Providing 30 days notice would be coxswain, petty officer, or other officer 7 p.m. daily beginning on July 25, 2016 impracticable because immediate action operating a Coast Guard vessel; as well through August 16, 2016. is needed to protect persons and
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property from the hazards associated navigation. This rule establishes a about this rule or any policy or action with power line work crossing the temporary safety zone limiting access to of the Coast Guard. navigable channel. a one-half mile area on the Illinois River C. Collection of Information from mile 69.3 to mile 69.8, for 12 hours III. Legal Authority and Need for Rule each day for approximately 3 weeks. This rule will not call for a new The Coast Guard is issuing this rule The impacts on navigation will be collection of information under the under authority in 33 U.S.C. 1231. The limited to ensure the safety of mariners Paperwork Reduction Act of 1995 (44 COTP has determined that potential and vessels during the period that U.S.C. 3501–3520). hazards associated with using helicopters will be pulling power lines D. Federalism and Indian Tribal helicopters to stretch power lines across across the navigational channel. Governments the navigational channel presents safety Notifications of enforcement times will concerns for anyone within this limited be communicated to the marine A rule has implications for federalism area of the waterway. This rule provides community via Broadcast Notice to under Executive Order 13132, additional safety measures, to protect Mariners. Deviation requests will be Federalism, if it has a substantial direct persons and vessels, in the form of a reviewed and considered on a case-by- effect on the States, on the relationship safety zone from mile 69.3 to mile 69.8 case basis. between the national government and on the Illinois River to protect those in the States, or on the distribution of the area and for the Coast Guard to B. Impact on Small Entities power and responsibilities among the maintain navigational safety. The Regulatory Flexibility Act of various levels of government. We have 1980, 5 U.S.C. 601–612, as amended, analyzed this rule under that Order and IV. Discussion of Comments, Changes, have determined that it is consistent and the Rule requires Federal agencies to consider the potential impact of regulations on with the fundamental federalism The Coast Guard is establishing a small entities during rulemaking. The principles and preemption requirements temporary safety zone prohibiting term ‘‘small entities’’ comprises small described in Executive Order 13132. access to the Illinois River from mile businesses, not-for-profit organizations Also, this rule does not have tribal 69.3 to mile 69.8, extending the entire that are independently owned and implications under Executive Order width of the river from 7 a.m. until 7 operated and are not dominant in their 13175, Consultation and Coordination p.m. daily, beginning on July 25, 2016 fields, and governmental jurisdictions with Indian Tribal Governments, and scheduled to end on August 16, with populations of less than 50,000. because it does not have a substantial 2016, or until conditions allow for safe The Coast Guard certifies under 5 U.S.C. direct effect on one or more Indian navigation, whichever occurs earlier. 605(b) that this rule will not have a tribes, on the relationship between the Deviation from the safety zone may be significant economic impact on a Federal Government and Indian tribes, requested and will be considered on a substantial number of small entities. or on the distribution of power and responsibilities between the Federal case-by-case basis as specifically While some owners or operators of Government and Indian tribes. If you authorized by the COTP or a designated vessels intending to transit the safety believe this rule has implications for representative. The COTP may be zone may be small entities, for the federalism or Indian tribes, please contacted by telephone at 314–269– reasons stated in section V.A. above, contact the person listed in the FOR 2332 or can be reached by VHF–FM this rule will not have a significant FURTHER INFORMATION CONTACT section. channel 16. economic impact on any vessel owner V. Regulatory Analyses or operator. E. Unfunded Mandates Reform Act We developed this rule after Under section 213(a) of the Small The Unfunded Mandates Reform Act considering numerous statutes and Business Regulatory Enforcement of 1995 (2 U.S.C. 1531–1538) requires Executive Orders related to rulemaking. Fairness Act of 1996 (Pub. L. 104–121), Federal agencies to assess the effects of Below we summarize our analyses we want to assist small entities in their discretionary regulatory actions. In based on a number of these statutes and understanding this rule. If the rule particular, the Act addresses actions Executive orders, and we discuss First would affect your small business, that may result in the expenditure by a Amendment rights of protestors. organization, or governmental State, local, or tribal government, in the jurisdiction and you have questions aggregate, or by the private sector of A. Regulatory Planning and Review concerning its provisions or options for $100,000,000 (adjusted for inflation) or Executive Orders 12866 and 13563 compliance, please contact the person more in any one year. Though this rule direct agencies to assess the costs and listed in the FOR FURTHER INFORMATION will not result in such an expenditure, benefits of available regulatory CONTACT section. we do discuss the effects of this rule alternatives and, if regulation is Small businesses may send comments elsewhere in this preamble. necessary, to select regulatory on the actions of Federal employees approaches that maximize net benefits. who enforce, or otherwise determine F. Environment Executive Order 13563 emphasizes the compliance with, Federal regulations to We have analyzed this rule under importance of quantifying both costs the Small Business and Agriculture Department of Homeland Security and benefits, of reducing costs, of Regulatory Enforcement Ombudsman Management Directive 023–01 and harmonizing rules, and of promoting and the Regional Small Business Commandant Instruction M16475.lD, flexibility. This rule has not been Regulatory Fairness Boards. The which guide the Coast Guard in designated a ‘‘significant regulatory Ombudsman evaluates these actions complying with the National action,’’ under Executive Order 12866. annually and rates each agency’s Environmental Policy Act of 1969 (42 Accordingly, it has not been reviewed responsiveness to small business. If you U.S.C. 4321–4370f), and have by the Office of Management and wish to comment on actions by determined that this action is one of a Budget. employees of the Coast Guard, call 1– category of actions that do not This regulatory action determination 888–REG–FAIR (1–888–734–3247). The individually or cumulatively have a is based on the limited location, Coast Guard will not retaliate against significant effect on the human enforcement periods and impacts on small entities that question or complain environment. This rule involves a safety
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zone on the Illinois River from mile 69.3 (2) To seek permission to enter, (Rehabilitation Act), as amended by the to mile 69.8. It is categorically excluded contact the COTP or the COTP’s Workforce Innovation and Opportunity from further review under paragraph representative via VHF–FM channel 16, Act (WIOA), the Rehabilitation Services 34(g) of Figure 2–1 of the Commandant or through Coast Guard Sector Upper Administration (RSA) makes grants to Instruction. An environmental analysis Mississippi River at 314–269–2332. public and private nonprofit agencies checklist supporting this determination Those in the safety zone must comply and organizations, including and a Categorical Exclusion with all lawful orders or directions institutions of higher education, to Determination are available in the given to them by the COTP or the establish interpreter training programs docket where indicated under COTP’s designated representative. or to provide financial assistance for ADDRESSES. We seek any comments or (d) Enforcement period. This rule will ongoing interpreter training programs to information that may lead to the be enforced from 7 a.m. until 7 p.m. train a sufficient number of qualified discovery of a significant environmental daily beginning on July 25, 2016 interpreters throughout the country. The impact from this rule. through August 16, 2016. grants are designed to train interpreters Dated: July 18, 2016. to effectively interpret and transliterate G. Protest Activities using spoken, visual, and tactile modes M.L. Malloy, The Coast Guard respects the First of communication; ensure the Amendment rights of protesters. Captain, U.S. Coast Guard, Captain of the maintenance of the interpreting skills of Port Upper Mississippi River. Protesters are asked to contact the qualified interpreters; and provide [FR Doc. 2016–17240 Filed 7–22–16; 8:45 am] person listed in the FOR FURTHER opportunities for interpreters to improve INFORMATION CONTACT section to BILLING CODE 9110–04–P their skills in order to meet both the coordinate protest activities so that your highest standards approved by message can be received without certifying associations and the jeopardizing the safety or security of DEPARTMENT OF EDUCATION communication needs of individuals people, places or vessels. who are deaf or hard of hearing and 34 CFR Chapter III individuals who are deaf-blind. List of Subjects in 33 CFR Part 165 [Docket ID ED–2016–OSERS–0005; CFDA Program Authority: 29 U.S.C. 772(f). Harbors, Marine safety, Navigation Number: 84.160C.] Applicable Program Regulations: 34 (water), Reporting and recordkeeping CFR part 396. requirements, Security measures, Final Priority—Training of Interpreters We published a notice of proposed Waterways. for Individuals Who Are Deaf or Hard priority (NPP) for this competition in For the reasons discussed in the of Hearing and Individuals Who Are the Federal Register on April 7, 2016 preamble, the Coast Guard amends 33 Deaf-Blind Program (81 FR 20268). That notice contained background information and our reasons CFR part 165 as follows: AGENCY: Office of Special Education and for proposing the particular priority. Rehabilitative Services, Department of PART 165—REGULATED NAVIGATION Public Comment: In response to our Education. AREAS AND LIMITED ACCESS AREAS invitation in the NPP, 26 parties ACTION: Final priority. submitted comments on the proposed ■ 1. The authority citation for part 165 SUMMARY: The Assistant Secretary for priority. Generally, we do not address continues to read as follows: Special Education and Rehabilitative technical and other minor changes, or Authority: 33 U.S.C. 1231; 50 U.S.C. 191; Services announces a final priority suggested changes the law does not 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; under the Training of Interpreters for authorize us to make under the Department of Homeland Security Delegation Individuals Who Are Deaf or Hard of applicable statutory authority. In No. 0170.1. Hearing and Individuals Who Are Deaf- addition, we do not address general ■ 2. Add § 165.T08–0678 to read as Blind program. The Assistant Secretary comments that raised concerns not follows: may use this priority for competitions in directly related to the proposed priority. fiscal year 2016 and later years. We take Analysis of Comments and Changes: § 165.T08–0678 Safety Zone; Illinois River An analysis of the comments and of any 69.3 to 69.8; Meredosia, IL. this action to provide training and technical assistance to better prepare changes in the priority since publication (a) Location. The following area is a novice interpreters to become highly of the NPP follows. safety zone: All waters of the Illinois qualified nationally certified sign River mile 69.3 to 69.8, extending the State-Level Certification or Licensure language interpreters. entire width of the river. Comment: A few commenters (b) Definitions. As used in this DATES: This priority is effective August suggested broadening the proposed section, designated representative 24, 2016. outcomes for the Experiential Learning means a Coast Guard Patrol FOR FURTHER INFORMATION CONTACT: Model Demonstration Center (Center) Commander, including a Coast Guard Kristen Rhinehart-Fernandez, U.S. beyond national certification to include coxswain, petty officer, or other officer Department of Education, 400 Maryland State-level certification or licensure. operating a Coast Guard vessel and a Avenue SW., Room 5062, Potomac These commenters noted that, in some Federal, State, and local officer Center Plaza (PCP), Washington, DC States, the State certification system is designated by or assisting the Captain of 20202–2800. Telephone: (202) 245–6103 used to prepare interpreters for the Port Upper Mississippi River or by email: [email protected]. advancement to national-level (COTP) in the enforcement of the safety If you use a telecommunications certification. Other States use the zone. device for the deaf (TDD) or a text Educational Interpreter Performance (c) Regulations. (1) Under the general telephone (TTY), call the Federal Relay Assessment (EIPA) and the Board for safety zone regulations in subpart C of Service (FRS), toll free, at 1–800–877– Evaluation of Interpreters (BEI) for this part, you may not enter the safety 8339. certification or licensure to offer zone described in paragraph (a) of this SUPPLEMENTARY INFORMATION: interpreting services within the State. section unless authorized by the COTP Purpose of Program: Under the Finally, one commenter stated that or the COTP’s designated representative. Rehabilitation Act of 1973 acknowledging the variability in State-
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to-State licensure and certification activities in postsecondary education, interpreters nationwide and therefore requirements is essential in meeting the employment, and community settings. should be maintained in the priority. goal of novice interpreters in the None of this, however, prohibits While we recognize CCIE is not experiential learning program achieving applicants from using State certification accredited by CHEA, we do not believe national certification. or licensure as an internal benchmark, this will adversely impact the lead Discussion: One goal of this program if applicable, for tracking participant applicant’s ability to effectively design is to increase the number and quality of progress towards achieving national and implement this Center because each nationally certified interpreters. We do certification. accreditation has a different purpose. not agree that modification of the Change: None. CHEA focuses on the quality of higher proposed outcomes to include State- education institutions and programs in Prospective Applicants level certification or licensure is order for the public to know that an appropriate for the Center. Comment: Many commenters institution or program provides an First, designating national addressed the proposed requirement overall quality education. certification as a desired outcome for that the lead applicant must be By contrast, the mission of CCIE is novice interpreters in the experiential accredited by the Commission on focused specifically on professionalism learning program will ensure Collegiate Interpreter Education (CCIE). in the field of interpreter education consistency in the training of these Many commenters recommended through the accreditation of professional interpreters, as well as the competencies removing this requirement because (1) preparation programs, the development these interpreters will possess by the CCIE accreditation is voluntary, (2) CCIE and revision of interpreter education end of the training period. This will also is not accredited by the Council for standards, the encouragement of ensure that novice interpreters will Higher Education Accreditation (CHEA), excellence in program development, a effectively meet the evolving needs of which is the body that accredits and sets national and international dialogue on youth and adults in the United States standards for organizations that review the preservation and advancement of who are deaf and hard of hearing or are and accredit higher education programs, standards in the field of interpreter and deaf-blind, including those who are and (3) attending a CCIE accredited higher education, and the application of consumers of the Vocational interpreter education program is not a knowledge, skills, and ethics of the Rehabilitation (VR) system. requirement for becoming a credentialed profession. There are currently 13 CCIE- Second, there is limited information interpreter. accredited programs 2 across the country available on the reliability and validity Several other commenters were that would meet the lead applicant of assessments used by States to confer concerned that the requirement would requirement for this competition. At certifications and licensures. For limit the pool of eligible applicants present, CCIE is the only entity in the example, in some cases, an individual because only about one-third of 44 field of interpreter education that pays a fee to receive a license to work baccalaureate interpreting programs measures the standards of interpreter as an interpreter in a State, regardless of nationwide are CCIE accredited. In education programs. skill or competency. In other cases, addition, there are five CCIE accredited We recognize that these standards are assessments, such as the BEI, are State associate of the arts (AA) degree the minimum requirements for CCIE specific, and there is no information interpreting programs. accreditation and a program may exceed about how the specific levels of skills A few commenters stated that the these standards in many areas, and competencies they assess compare proposed requirement would mean that including those indicated by the with the level of skills and programs on the path to accreditation, comments. One of the goals of the competencies required to pass other private entities that do not possess or Center is to increase accessibility of and State-level licensure tests, let alone the have such accreditation available to access to interaction and immersion in national interpreter certification exam. them, and non-CCIE accredited the Deaf community, having an Conversely, national certification programs offering rigorous, high-quality available Deaf population to promote assessments have undergone instruction in American Sign Language student training, and standards such as psychometric evaluation to ensure (ASL)-English interpretation would not ASL fluency. As such, we believe the consistency, reliability, and validity of be eligible to serve as a lead applicant. requirements in the priority support this results. Several commenters stated that CCIE goal. Finally, the EIPA does not apply to accreditation standards do not include We acknowledge that CCIE the training we intend to be offered by several areas that are significant to the accreditation is voluntary and that the Center. The EIPA focuses on proposed priority, including attending a CCIE-accredited interpreter interpreting competencies that are accessibility of, access to, interaction education program is not a requirement necessary to effectively interpret in with, and immersion in the Deaf for becoming a credentialed interpreter. elementary and secondary general community; having an available Deaf However, we believe that the interpreter education settings. We intend for the population to promote student training; education program should be Center to train interpreters with specific and standards such as ASL fluency. accredited. The Center is then better competencies that are necessary to One commenter estimated the cost of positioned to incorporate interpreter effectively interpret for youth and adults accreditation from CCIE at $10,000 or education standards into the design and who are deaf 1 or hard of hearing and more and noted that some organizations delivery of training and to evaluate its individuals who are deaf-blind, are not in a position to support CCIE- effectiveness in increasing the number including those who are VR consumers related costs at this time. of certified interpreters. in transition from school to post-school Finally, one commenter suggested While non-CCIE accredited that CCIE accreditation be considered as baccalaureate degree English-ASL 1As used in this notice, the word ‘‘deaf’’ refers to a secondary qualification, rather than a programs are not eligible as the lead (1) ‘‘deaf’’ and ‘‘Deaf’’ people, i.e. to the condition requirement for the lead applicant. applicant, they may serve as members of of deafness; (2) to ‘‘deaf, hard of hearing, and Deaf- Discussion: We believe the proposed Blind’’; and (3) to individuals who are culturally the consortium. We respect and value Deaf and who use American Sign Language (ASL). requirement for the lead applicant to be When we use ‘‘Deaf,’’ we refer only to the third accredited by CCIE aligns with the goal 2 www.discoverinterpreting.com/?Find_an_ASL- group. of the Center to improve the quality of English_Interpreting_program.
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non-CCIE accredited programs offering support to transition-age youth and who are deaf and who can model native rigorous, high-quality interpreter adults with disabilities through such (first language) fluency in ASL. education. We are also sensitive to activities as funding various VR services Applicants are encouraged to include budgetary and other constraints that and training of qualified personnel. The in their consortium other appropriate may limit institutions pursuing CCIE final priority aligns with the WIOA entities such as VR agencies, accreditation. We encourage eligible framework by focusing on the training community-based organizations, and lead applicants to consider a number of of qualified interpreters to work with State commissions. Applicants could appropriate entities, including high- transition-age youth and adults who are develop at least one partnership with a quality non-CCIE accredited deaf, hard of hearing, or deaf-blind. community-based entity (for example, baccalaureate degree interpreter Thus, programs that prepare students to with a Commission for the Deaf that is education programs, to carry out the work in K–12 settings are not eligible knowledgeable and involved in the work of the consortium. applicants or members of the delivery of interpreter services), at least Change: None. consortium because WIOA funds do not one partnership with industry or government agencies (e.g., State VR Consideration of Other Eligible support training of interpreters to work agencies or American Job Centers) and Applicants in K–12 settings, with the exception of transition services. at least one partnership with post- Comment: Some commenters Change: Under the purpose of the secondary settings (e.g., universities that suggested consideration of other eligible priority, we have clarified that the serve a large number of deaf and hard lead applicants or as members of the Center must prepare novice interpreters of hearing students). Each of these consortium such as AA programs, to work in VR settings. partnerships would yield different types associate in applied sciences (AAS) of learning and coaching contexts and programs, and master’s degree In paragraph (a) under ‘‘Establish a consortium’’ in the Project Activities allow for dynamic application of new interpreter education programs that ideas and structures for possible prepare interpreter educators in section of the priority, we have clarified that an eligible consortium can be replication. In addition, non-CCIE addition to hosting baccalaureate degree accredited baccalaureate degree English- programs that prepare students to work comprised of a designated lead applicant that operates both bachelor’s ASL programs may serve as members of in kindergarten through grade 12 (K–12) the consortium. and master’s degree programs in settings upon graduation. We agree that training for novice interpreter education that are Discussion: The proposed priority did interpreters must include skills for not specify that programs offering both recognized and accredited by CCIE. interacting in diverse cultural milieus a bachelor’s and master’s degree in Members of a Consortium and, as such, members of the interpreter education could serve as consortium must represent diverse Comment: A number of commenters lead applicants if the program holds linguistic and cultural minority asked that we clarify which entities CCIE accreditation. We agree that these backgrounds and be qualified to provide must be represented in the consortium. programs should be eligible lead instruction on best practices for One commenter recommended applicants and may also serve as interpreting in diverse cultural and maintaining the proposed entities in members of the consortium, and we are linguistic settings. revising the priority accordingly. order to gain the broadest analysis of Change: In paragraph (b) under However, AA/AAS programs are not effective models and practices possible. ‘‘Establish a consortium’’ in the Project eligible lead applicants. Since July 2012, In addition, commenters also stated Activities section of the priority, we there has been an educational that the entities participating in the clarified that members of the requirement for an individual to sit for consortium should be required to consortium must be staffed by or have the Registry of Interpreters for the Deaf include individuals who are access to experienced and certified National Interpreter Certification test. experienced and qualified interpreters, interpreters, interpreter educators, Specifically, candidates must possess, at interpreter educators, trained mentors, individuals who are deaf, trained a minimum, a bachelor’s degree in any and individuals who are deaf, as well as mentors, and first language models in field or major, or a demonstrated those who can model native (first ASL. We added that consortium educational equivalency. We want to language) fluency in ASL. One members must represent diverse ensure that, while the individuals commenter stated that the most linguistic and cultural minority served by the Center require additional successful experiential learning backgrounds and be qualified to provide skills training to be provided by the programs include coaching, mentoring, instruction on best practices in Center, they otherwise meet the and explicit instruction that focuses interpreting in diverse cultural and requirements to sit for the National specifically on the skills for interacting linguistic settings. Certification examination. in diverse cultural milieus. Programs that prepare students to Discussion: We agree that we need to Consortium Expectations in Terms of work in K–12 settings are not eligible clarify paragraph (b) under ‘‘Establish a Cost Match lead applicants or members of the consortium’’ and the types of entities Comment: One commenter asked consortium because the focus of this that must be represented in the whether consortium members or other program is to prepare novice consortium. When we stated in the identified partners must contribute to interpreters to work in VR settings. We proposed priority that ‘‘members of the the cost of implementation, either believe this focus was implied in the consortium must be staffed by or have through direct or indirect contributions. background section of the priority but access to experienced and certified Discussion: The proposed priority did recognize it was not clearly stated interpreters, interpreter educators, and not address this question. The within the proposed priority. Therefore, trained mentors with the capability in responsibility for costs associated with we take this opportunity to provide providing feedback and guidance to all aspects of the Center, such as further explanation to support the focus novice interpreters, and in serving as program design, implementation, of this program. language models,’’ we meant that training activities, and evaluation, as The Workforce Innovation and members of the consortium must have well as oversight and management of Opportunity Act (WIOA) emphasizes on staff, or have access to, individuals the Center, will be determined and
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agreed upon by the lead applicant, members. By not requiring other program. One of the reasons for piloting members of the consortium, and other specific team members, we will also the program in a single site by year two identified partners. This also applies to avoid inadvertently excluding potential is to identify and resolve issues and determining any direct or indirect costs team members. challenges that may arise, as well as to or in-kind contributions made by the The Department acknowledges there make improvements to the content and lead applicant, members of the are interpreter-related definitions delivery of the training based on consortium, and other identified available through other Federal feedback from the team working with partners. The notice inviting agencies. However, we want to ensure the novice interpreters and the novice applications will specify whether there that any interpreter-related definitions interpreters participating in the first is a cost-matching requirement and, if are appropriate for the Center and align pilot. This Center is a demonstration so, it will confirm the percentage of the with the statute and regulations for this and, at the conclusion of the grant, we match. Regardless of how the lead program. will assess program outcomes and applicant, consortium members, and In a notice of proposed rulemaking determine whether or not an other identified partners determine (NPRM) published in the Federal experiential learning approach had an shared costs, it is ultimately the Register on April 16, 2015 (80 FR impact in improving the preparation of responsibility of the lead applicant to 20988), we proposed to amend the novice interpreters. For these reasons, meet the cost-matching requirement. definition of a ‘‘qualified professional’’ we believe the proposed timelines are Change: None. to mean an individual who has (1) met reasonable. existing certification or evaluation Change: None. Team Comprised of Native Language requirements equivalent to the highest Users, Qualified Interpreters, and standards approved by certifying Project Activities Trained Mentors associations; and (2) successfully Comment: Several commenters Comment: We received several demonstrated interpreting skills that suggested that we include in the priority comments about the proposed reflect the highest standards approved additional project activities that are requirement for the consortium to by certifying associations through prior associated with long-term success for establish a team of native language work experience.’’ The term ‘‘qualified ASL-English interpreters. Some users, qualified interpreters, and trained interpreter’’ used throughout the examples of additional project activities mentors to partner with novice proposed priority is synonymous with included: (1) Volunteer interpreting interpreters during and after successful ‘‘qualified professional.’’ A notice of experiences pairing experienced completion of the experiential learning final rulemaking is anticipated to interpreters who agree to volunteer with program. Overall, commenters publish in late July. novice interpreters; (2) in-service recommended maintaining separation of Change: We replaced the term training programs built around these positions but indicated a need for ‘‘qualified interpreter’’ with ‘‘qualified individualized skills development clear definitions, roles, responsibilities, professional’’ for accuracy and activities/modules determined after a and the training and qualifications consistency with our regulations. Under comprehensive diagnostic assessment to necessary for each position within the Training Activities, in paragraph (a)(1), increase novice practitioner team. Rather than the Department we added that applicants must describe performance; (3) scripted training developing its own definitions, one in their application the roles and exercises involving real-life scenarios commenter recommended the responsibilities for each team member. with actors/mentors from the Deaf Department use applicable definitions Project Timelines community; (4) curricular modifications developed by the Office of Personnel and differentiation strategies to serve Management when defining the roles of Comment: Commenters generally novice interpreters who are children of these team members. Two commenters supported the proposed timeline to plan deaf adults (CODAs), particularly stated that native language users not and design the curriculum, develop CODAs of color; (5) socialization with only include deaf individuals but also training modules, and to implement a the Deaf community; and (6) field-based those individuals who have grown up pilot experiential learning program induction programs that employ more using the language and are fluent in it within the first two years of the grant direct supervision of work experiences (e.g., children of deaf adults). In period. However, one commenter than is typically available through addition to serving as language models, cautioned that expecting students to mentorship. native language users should provide become ready-to-work interpreters by Discussion: Applicants must meet the mentorship in linguistic and cultural attending a four-year program is minimum proposed project activities competencies. Another commenter unrealistic. Another commenter and may add or incorporate other suggested combining the roles of native reasoned that a sustainable program specific activities, including the language user and trained mentor. needs two to three years to design, activities described in the comments, as Discussion: We will not further implement, evaluate, revise, and appropriate, in order to strengthen the specify who must be a member of the continue implementation with three to design, curriculum, and training team to work with novice interpreters. four graduated cohorts in order to developed and delivered by the Center. We believe applicants are best suited to generate evidence of impact. We encourage applicants to include in assemble an inclusive and appropriate Discussion: We recognize that their proposed project any additional team. Applicants may define team graduates from baccalaureate degree activities that they believe would members and determine the roles, ASL-English interpreter training improve the preparation of novice responsibilities, and qualifications of programs may not be immediately ready interpreters. these positions. While we acknowledge to work and that is why we are Change: None. that some roles among team members establishing a model demonstration may be shared or combined, we expect, center to better prepare novice Measures for Assessing the however, the team to include, at interpreters to become nationally Improvement in Interpreting Skills of minimum, native language users, certified sign language interpreters. We Novice Interpreters qualified interpreters, and trained also agree that adequate time is needed Comment: Several commenters mentors, as well as other appropriate to analyze evidence and assess the suggested that, to assess outcomes more
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effectively and in a way that goes Discussion: We agree there was an not explicitly stated and to clarify this beyond self-reported ‘‘meaningfulness,’’ inconsistency in the proposed priority. we are adding paragraph (b)(5) in the we require in the priority the use of The pilot site entity must be hosted by Training Activities section of the specific assessment tools to measure the a baccalaureate degree ASL-English priority. improvement in interpreting skills of program. This is essential to the priority We also agree that we need to clarify novice interpreters, such as diagnostic because we believe these specific the required cohort participants. We assessments/reviews; tools that address programs demonstrate the ability to intend for the Center to train the proficiency of educational effectively recruit and select cohort interpreters with specific competencies interpreters, such as the Educational participants, as well as track and that are necessary to effectively interpret Interpreter Performance Assessment evaluate participants. However, to for adults who are deaf or hard of (EIPA) developed by Boys Town provide applicants with more flexibility, hearing and individuals who are deaf- National Research Hospital; assessments we also want to clarify that applicants blind, including those who are VR used by the American Council for may either identify eligible pilot sites in consumers, in transition from school to Teaching Foreign Languages, Texas their application or describe the process post-school activities, postsecondary Board for Evaluators of Interpreters, and and criteria they will use to identify education, employment, and Utah Interpreting Program; pre- and eligible pilot sites upon award. We also community settings. Therefore, post-program scores on the American clarify that partner organizations may graduates of partner organizations Sign Language Proficiency Inventory; or serve as experiential learning sites. preparing K–12 interpreters are not general assessment instruments like the Changes: We have revised paragraph appropriate to participate in the pilot. Cultural Intelligence Scale, Intercultural (b)(1) in the Training Activities section Eligible cohort participants may Development Inventory, or other well- of the priority to require applicants to include deaf individuals, students in reviewed measures of intercultural identify at least three existing their final one or two semesters of competence. One commenter stated that baccalaureate degree ASL-English completing their degree from a CCIE- or measurement of instruction in core interpretation programs to host the pilot non-CCIE-accredited baccalaureate dispositions of novice interpreters is sites. We have also added to paragraph degree ASL-English interpreter program, needed because without instruction in (b)(1) that applicants may describe the recent graduates of CCIE- and non-CCIE- and measurement of elements of process and criteria they will use to accredited baccalaureate degree ASL- essential professional attributes, a identify the pilot sites upon award. English interpreter education programs, and working novice interpreters who novice interpreter may become more of Cohort Participants a ‘‘language technician’’ but not a true intend to obtain national certification Comment: Several commenters asked mediator. and interpret for adults who are deaf or that the Department clarify the hard of hearing and individuals who are Discussion: We acknowledge there are qualifications of novice interpreter deaf-blind, including deaf consumers of several assessment tools that may be applicants who would be selected to the VR system. The recruitment and appropriate to measure the participate in the pilot sites. One selection of cohort participants will be improvement in interpreting skills of commenter recommended removing the determined by the Center. novice interpreters, and we believe that requirement for cohort participants to Change: We have expanded the list of applicants are better positioned to have a bachelor’s degree in any field or possible cohort participants by deleting determine which tools are most major (as required to sit for the National the requirement for the cohort to appropriate for their proposed projects. Interpreter Certification exam). The comprise graduates from baccalaureate Nothing in this priority prevents commenter proposed that cohort degree ASL-English interpretation applicants from choosing to use any participants who do not have a programs who are preparing for, or have valid or reliable assessment tool to bachelor’s degree could, instead, not passed, the National Interpreter gauge the progress of novice demonstrate equivalent knowledge and Certification knowledge and interpreters. Any proposed instruments skills in ASL-English interpretation. performance exams and who intend to must be valid and reliable and the Other commenters suggested that cohort work as interpreters, which was in applicant must submit rationale to participants include: (1) Individuals paragraph (b)(2) of the Training support the use of each instrument. who are deaf or hard of hearing and who Activities section of the proposed Change: We have added the are preparing for the Certification of priority. We have also expanded the list requirements that any proposed Deaf Interpreter (CDI) exam; (2) of possible cohort participants by instruments must be valid and reliable, graduates of partner organizations adding paragraphs (b)(4) and (b)(5) and the applicant must submit rationale preparing K–12 interpreters; and (3) under the Training Activities section. to support the use of each instrument, graduates of baccalaureate degree Under paragraph (b)(4), applicants must to paragraphs (b)(9) and (c) of the programs who have not yet obtained ensure cohort participants intend to Training Activities section and program accreditation from the CCIE. obtain national certification and paragraph (c)(1) in the Application One commenter stressed the importance interpret for adults who are deaf or hard Requirements section. of diversity and inclusion among cohort of hearing and individuals who are deaf- blind, including deaf consumers of the Pilot Sites participants and of ensuring recruitment of students of color, trilingual students, VR system. We have provided that Comment: A few commenters asked deaf and deaf-blind students, and eligible cohort participants may include that we clarify which entities are children of deaf adults. deaf individuals, students in their final eligible to be pilot sites. More Discussion: We agree that, to the one or two semesters of completing their specifically, one commenter noted that extent possible, applicants must ensure degree from a CCIE or non-CCIE the proposed priority indicated in one diversity and inclusion among cohort accredited baccalaureate degree ASL- place that a partner organization may be participants and ensure recruitment of English interpreter program, recent a pilot site, while providing in another students of color, trilingual students, graduates of CCIE and non-CCIE place that the pilot site must be an deaf and deaf-blind students, and accredited baccalaureate degree ASL- existing baccalaureate degree ASL- children of deaf adults. While this was English interpreter education programs, English interpretation program. implied in the proposed priority, it was and working novice interpreters. Under
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paragraph (b)(5), applicants must, to the in all circumstances, however. Some suggested the Department could require extent possible, ensure diversity and cohort participants may be fully capable the applicant to establish guidelines inclusion among cohort participants and of completing the program and attaining basing the number of interpreters in ensure recruitment of students of color, national certification but may not be in each cohort on the applicant’s program trilingual students, deaf and deaf-blind a position to pay even reasonable fees, size. students, and children of deaf adults. and we would not want to exclude them Discussion: We agree that the number Comment: None. from participating. Therefore, we of novice interpreters per cohort may Discussion: Upon further review of encourage applicants that choose to vary depending on the pilot site. We paragraph (b) of the Training Activities charge reasonable fees to consider a also agree that novice interpreters will section of the priority, we believe that process for waiving these fees on a case- require personalized and in-depth we should clarify the requirements for by-case basis. attention. We revised the priority to recruiting and selecting cohort If an applicant chooses to charge allow applicants to provide a plan in participants and align this paragraph reasonable fees, it must describe in the their application for how they will with other revisions we are making to application how this fee will be determine the number of cohorts for this section. determined. If successful, upon award, each pilot site and the number of Change: We have made several the applicant must develop internal participants in each cohort upon award. revisions to paragraph (b) of the policies and procedures for collecting Applicants should plan accordingly for Training Activities section of the and effectively managing these fees. all cohorts to complete the training priority. First, we have moved the Any fees retained as a result of a program before the end of the project in requirement, in proposed paragraph participant dropping out are considered order to evaluate and report on (b)(2), that applicants provide a plan to program income. Therefore, applicants outcomes of each cohort in each pilot ensure that at least one cohort is should refer to 2 CFR 200.307 for site. completed in each pilot site prior to the applicable regulations for program Change: In paragraph (b)(2) of the end of the project period into a new income. Training Activities section of the paragraph (b)(3). Second, we have Change: In paragraph (a)(1) of the priority, we have added the option for moved a portion of paragraph (b)(3) into Training Activities section of the applicants to provide a plan for how a new paragraph (b)(6) and added a priority, we have removed the proposed they will determine the number of provision requiring that applicants requirement that all activities must be cohorts for each pilot site and the establish processes and procedures for offered at no cost to participants during number of participants in each cohort recruitment and selection of cohort the program. We have added paragraph upon award, rather than requiring that participants, including criteria to ensure (b)(10) to provide that applicants may all applicants make this determination cohort participants demonstrate the choose to charge reasonable fees to capability to successfully complete the cohort participants but must describe in in the application. program and obtain national their application how these fees will be General Comments certification. Third, we have added determined. In addition, we have Comment: A couple of commenters paragraph (b)(7) to require that provided that, upon award, applicants suggested participants in the cohort applicants establish procedures to must develop internal policies and identify and provide technical procedures for collecting and effectively should receive college credit or assistance to cohort participants who managing these fees, and for waiving continuing education units for may be ‘‘at risk’’ of dropping out of the these fees for a cohort participant if participation in an effort to elevate program. Finally, we have added there is a financial hardship. Any fees interest and recruitment into the paragraph (b)(11) to provide that, upon retained as a result of a participant program. award, all successful applicants must dropping out are considered program Discussion: We anticipate a number of develop and effectively communicate to income. cohort participants will be students in their final semester of completing their all cohort participants policies and Number of Cohorts procedures related to participation in baccalaureate degree English-ASL the experiential learning program. Comment: Several commenters program and, therefore, may not benefit recommended a specific number of from additional college credit. However, Cost of Cohorts cohorts and a number of novice nothing in the priority prevents Comment: Some commenters interpreters per cohort. Generally, applicants from proposing to award disagreed with the proposed commenters supported cohorts of 8 to college credits or continuing education requirement that all activities must be 12 novice interpreters based on the units to participants. Should they offered at no cost to participants during Conference of Interpreter Trainers’ choose to award such credits, applicants the program. Commenters indicated that recommended classroom size for are expected in their application to offering the experiential learning interpreter education classes. One describe their plans to do so. program at no cost does not allow buy- commenter recommended following Change: We have added paragraph in from participants who may drop the CCIE guidelines of up to 12 in a cohort. (b)(8) in the Training Activities section program at any time since there is no Other commenters suggested 3 to 4 of this priority to clarify that applicants penalty for doing so. One commenter cohorts with anywhere from 8 to 12 may determine whether to award suggested a reasonable fee be required novice interpreters. One commenter college credits or continuing education for cohort participants and that, upon indicated that class sizes need to be on units to cohort participants, as successful completion of the program, the smaller side so that students can get appropriate, and to require applicants to the fee could be refunded to the more personalized and in-depth describe any plans for awarding college participant. attention. Another commenter credits or continuation education units Discussion: We agree for the reasons recommended the Department should in their application. commenters stated that it can be not require a certain number of novice Comment: One commenter appropriate to charge reasonable fees interpreters per cohort since this recommended an invitational priority or and applicants may do so. Charging number could vary greatly among each competitive preference for novice reasonable fees may not be appropriate program. However, the commenter applicants.
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Discussion: A novice applicant for interpreting services continues to baccalaureate degree ASL-English priority already exists under 34 CFR exceed the available supply of qualified programs to provide work experiences 77.225, so it is not necessary to establish interpreters. Interpreters must be and mentoring; (2) pilot the experiential one in this NFP. If we use the novice qualified to work with both individuals learning program in three baccalaureate priority in a competition, we will with a range of linguistic competencies degree ASL-English programs and provide notification in the applicable from a variety of cultural backgrounds evaluate the results; and (3) disseminate notice inviting application published in and individuals with disabilities. practices that are promising or the Federal Register. Interpreters need additional education, supported by evidence, examples, and Change: None. training, and experience in order to lessons learned. Comment: Two commenters meet certification standards, to bridge The Center must prepare novice recommended the priority support two the graduation-to-credential gap, and to interpreters to work in VR settings and additional areas to address unmet needs gain sufficient skills to interpret in the field. The first commenter be designed to achieve, at a minimum, effectively. Therefore, we believe the following outcomes: indicated that research has provided a establishing a Model Demonstration snapshot into the unmet needs of deaf Center will better prepare novice (a) Increase the number of certified or hard of hearing individuals and interpreters to become nationally interpreters. individuals who are deaf-blind, and, certified sign language interpreters in (b) Reduce the average length of time therefore, recommended we include a order to meet the needs of individuals it takes for novice interpreters to robust needs assessment (which was who are deaf and hard of hearing and become nationally certified after part of the 2010 interpreter training individuals who are deaf-blind. graduating from baccalaureate degree grants) within this priority. The second Change: None. ASL-English interpretation programs; commenter recommended that we Comment: Several commenters and require grantees to undertake the offered additional strategies beyond the (c) Increase the average number of research necessary to develop a required logic model and project hours that novice interpreters, through psychometrically valid instrument evaluation to ensure that grantees are the experiential learning program, because, they stated, no domain-specific evaluating their programs throughout interact with and learn from the local instrument exists yet in the sign planning, designing, and implementing deaf community. language interpreting field for the experiential learning curriculum. evaluating intercultural competency. For example, commenters suggested that Project Activities Discussion: These activities are applicants could supplement or outside the purpose and intent of this strengthen their evaluation using To meet the requirements of this priority. secondary sources such as research and priority, the Center must, at a minimum, Change: None. investigative books, journal articles, and conduct the following activities: Comment: While the majority of dissertations, and use national Establish a consortium comments support the goals and intent certifications such as the BEI or EIPA, of the proposed priority, five portfolios, consumer endorsement, and (a) The applicant must establish a commenters recommended maintaining other relevant methods of design. consortium of training and technical the current national and regional Discussion: We acknowledge there are assistance (TA) providers or use an interpreter education centers. other potential strategies that could be Discussion: We do not believe existing network of providers to design used to ensure a program evaluation and implement a model experiential maintaining the current structure of framework includes the planning, national and regional interpreter learning program. An eligible designing, and implementing of the consortium must be comprised of a education centers is in the best interest experiential learning curriculum. of the field. The Department has funded designated lead applicant that operates Applicants may propose unique or a baccalaureate degree ASL-English interpreter training programs since 1964 additional strategies beyond the to meet the needs of VR consumers who interpretation program that is required logic model and program recognized and accredited by CCIE or are deaf or hard of hearing and evaluation. Applicants should provide individuals who are deaf-blind. At each that operates both bachelor’s and rationale in their application to support master’s degree programs in interpreter critical juncture, we have re-evaluated these additional strategies. the interpreter training program to education that are recognized and Change: None. accredited by CCIE; and determine how to best meet the needs FINAL PRIORITY: of consumers of interpreting services. In This notice contains one final (b) Members of the consortium must the course of this ongoing re-evaluation, priority. be staffed by or have access to we concluded that, since 2005, when Experiential Learning Model experienced and certified interpreters, the current priorities were established Demonstration Center for Novice interpreter educators, individuals who for the national and regional centers, the Interpreters and Baccalaureate Degree are deaf, trained mentors, and first training needs of interpreters have ASL-English Interpretation Programs. language models in ASL. The changed as a result of new and emerging Final Priority: consortium must also represent issues facing VR consumers who are The purpose of this priority is to fund members with diverse linguistic and deaf or hard of hearing and individuals a cooperative agreement for the cultural minority backgrounds who are who are deaf-blind. The Department establishment of a model demonstration qualified to provide instruction on best gave serious consideration to how we center (Center) to: (1) Develop an practices in interpreting in diverse could continue to effectively use our experiential learning program that could cultural and linguistic settings. All funds to influence the field of be implemented through baccalaureate consortium members must demonstrate interpreter education and ultimately degree ASL-English programs or the capability to provide training, meet the current and future needs of VR through partner organizations, such as mentoring, and feedback in person or consumers. community-based organizations, remotely to novice interpreters who are As we noted in the background advocacy organizations, or commissions geographically dispersed across the section in the NPP, we believe the need for the deaf or deaf-blind that work with country, including the territories.
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Training Activities participate in the program (i.e., education programs, and working (a) In years one and two, design and participants who need to work while in novice interpreters; (5) To the extent possible, ensure implement an experiential learning the program, have child care or elder diversity and inclusion among cohort program that is based upon promising care considerations, or live in participants and ensure recruitment of and best practices or modules in the geographically isolated areas); (4) Provide experiential learning that students of color, trilingual students, preparation of novice interpreters to engages novice interpreters with deaf and deaf-blind students, and become certified interpreters. The different learning styles; children of deaf adults; program design must, at a minimum: (5) Provide interpreting experiences (6) Establish processes and (1) Include a team that comprises with a variety of deaf consumers who procedures for recruitment and native language users, qualified have different linguistic and selection of cohort participants, professionals, and trained mentors to communication needs and preferences, including criteria to ensure cohort partner with novice interpreters during and are located in different settings, participants demonstrate the capability and after successful completion of the including VR settings (e.g., VR to successfully complete the program experiential learning program. counseling, assessments, job-related and obtain national certification. This Applicants must describe in their services, training, pre-employment may include, but is not limited to, application the roles and transition services, transition services, submission of an application, relevant responsibilities for each team member. post-employment services, etc.), assessments, interviewing prospective Roles for team members must include American Job Centers, and other participants, and obtaining but are not limited to: relevant workforce partner locations; recommendations from faculty at (i) Native language users who will (6) Require novice interpreters to baccalaureate degree ASL-English serve as language models; observe, discuss, and reflect on the work interpretation programs and other (ii) Qualified professionals who will of the advisor interpreter; appropriate entities; act in an advisory role by observing, (7) Require novice interpreters to (7) Establish procedures to identify providing feedback, and discussing the interpret in increasingly more complex and provide technical assistance to novice interpreter’s ability to accurately and demanding situations. The advisor cohort participants who may be ‘‘at interpret spoken English into ASL and interpreter must provide written and risk’’ of dropping out of the program; ASL into spoken English in a variety of oral feedback that includes strengths (8) Determine if college credits or situations for a range of consumers; and and areas of improvement, as well as a continuing education units will be (iii) Provide mentoring to novice discussion with the novice interpreter awarded to cohort participants, as interpreters, as needed. This may about interpretation options, ethical appropriate. Should applicants choose include one-on-one instruction to behavior, and how best to meet the to do so, they must describe any plans address specific areas identified by the communication needs of a particular for awarding college credits or advisor as needing further practice, as consumer; and continuation education units in their well as offering tools, resources, and (b) Pilot the experiential learning application; guidance to novice interpreters to program in a single site by year two and (9) Describe any assessment tools that prepare them for potential challenges expand to additional sites beginning in will be used to gauge the progress of they may encounter as they grow and year three. Applicants must: novice interpreters. Any proposed advance in the profession. One-on-one (1) Identify at least three existing instruments must be valid and reliable instruction may address, but is not baccalaureate degree ASL-English and the applicant must submit rationale limited to, meaning transfer (e.g., interpretation programs to host the pilot to support the use of each instrument; accurately providing an equivalent sites. The baccalaureate programs must (10) Describe in their application how message, appropriately handling use a curriculum design that is based any reasonable fees that the applicant register), ethical behavior, meeting the upon current best practices in the ASL- proposes to charge cohort participants consumer’s linguistic preference, English Interpreter Education will be determined. If successful, upon managing the flow of information (e.g., profession. Applicants may identify the award, applicants must develop internal pace, density, turn-taking), and other pilot sites in the application or describe policies and procedures for collecting related aspects of the interpreting task. the process and criteria they will use to and effectively managing these fees, as (2) Provide multiple learning identify the pilot sites upon award; well for waiving fees for a cohort opportunities, such as an internship (2) Indicate in the application the participant if there is a financial with a community program, mentoring, number of cohorts for each pilot site and hardship. Any fees retained as a result and intensive site-specific work. the number of participants in each of a participant dropping out are Intensive site-specific work may task a cohort or provide a plan in the considered program income. Therefore, novice interpreter, under close direction application for how this will be applicants should refer to 2 CFR from the advisor interpreter, with determined upon award; 200.307 for applicable regulations for providing interpreting services to deaf (3) Provide a plan in the application program income; and individuals employed at a work site, or to ensure that at least one cohort is (11) Develop and effectively to deaf students taking courses at completed in each pilot site prior to the communicate to all cohort participants college or enrolled in an apprenticeship end of the project period; the policies and procedures related to program. Other learning modalities may (4) Ensure cohort participants intend participation in the experiential be proposed and must include adequate to obtain national certification and learning program. justification. interpret for adults who are deaf or hard (c) Conduct a formative and (3) Emphasize innovative of hearing and individuals who are deaf- summative evaluation. Any proposed instructional delivery methods, such as blind, including deaf consumers of the instruments must be valid and reliable distance learning or block scheduling VR system. Cohort participants may and the applicant must submit rationale (i.e., a type of academic scheduling that include deaf individuals, students to support the use of each instrument. offers students fewer classes per day for within one or two semesters of At a minimum, this must include: longer periods of time) that would allow completing their interpreter education (1) An assessment of participant novice interpreters to more easily program, recent graduates of interpreter outcomes from each cohort that
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includes, at a minimum, level of Center either may develop new platforms or learning program and, at the end of the knowledge and practical skill levels systems or may modify existing platforms or program, to successfully obtain national using pre- and post-assessments; systems, so long as the requirements of this certification; feedback from novice interpreters, from priority are met. (2) Demonstrate knowledge of practices that are promising or interpreter advisors, including written Coordination Activities feedback from observed interpreting supported by evidence in training situations, from deaf consumers, from (a) Establish an advisory committee. novice interpreters; and trained mentors, including written To effectively implement the Training (3) Demonstrate knowledge of feedback from mentoring sessions, and Activities section of this priority, the practices that are promising or from others, as appropriate; applicant must establish an advisory supported by evidence in providing (2) Clear and specific measureable committee that meets at least semi- experiential learning. outcomes that include, but are not annually. The advisory committee must (b) Demonstrate, in the narrative limited to: include representation from all affected section of the application under (i) Improvement in specific linguistic stakeholder groups (i.e., interpreters, ‘‘Quality of Project Services,’’ how the competencies, as identified by the interpreter training programs, deaf proposed project will— applicant, in English and ASL; individuals, and VR agencies) and may (1) Ensure equal access and treatment (ii) Improvement in specific include other relevant groups. The for members of groups that have competencies, as identified by the advisory committee will advise on the historically been underrepresented applicant, in ASL-English strategies for establishing sites to pilot based on race, color, national origin, interpretation; the experiential learning program, the gender, age, or disability in accessing (iii) Outcomes in achieving national approaches to the experiential learning postsecondary education and training; certification; and program, modifications to experiential (2) Identify the needs of intended (iv) The length of time for novice learning activities, TA, sustainability recipients of training; and interpreters to become nationally planning, and evaluating the (3) Ensure that project activities and certified sign language interpreters after effectiveness of the program, as well as products meet the needs of the intended participating in this project compared to other relevant areas as determined by recipients by creating materials in the national average of 19–24 months. the consortium. formats and languages that are (b) Establish one or more accessible; Technical Assistance and communities of practice 3 that focus on (4) Achieve its goals, objectives, and Dissemination Activities project activities in this priority and that intended outcomes. To meet this Conduct TA and dissemination act as vehicles for communication and requirement, the applicant must identify activities that must include: exchange of information among and provide— (a) Preparing and broadly participants in the experiential learning (i) Measurable intended project disseminating TA materials related to program, as well as other relevant outcomes; practices that are promising or stakeholders; (ii) Evidence of an existing supported by evidence and successful (c) Communicate, collaborate, and Memorandum of Understanding or a strategies for working with novice coordinate, on an ongoing basis, with Letter of Intent between the lead interpreters; other relevant Department-funded applicant, members of the consortium, (b) Establishing and maintaining a projects, as applicable; and other proposed training and TA state-of-the-art information technology (d) Maintain ongoing communication providers, and other relevant partners to (IT) platform sufficient to support with the RSA project officer and other establish a consortium that includes a Webinars, teleconferences, video RSA staff as required. description of each proposed partner’s anticipated commitment of financial or conferences, and other virtual methods Application Requirements of dissemination of information and TA. in-kind resources (if any), how each To be funded under this priority, proposed provider’s current and Note: All products produced by the Center applicants must meet the application proposed activities align with those of must meet government- and industry- requirements in this priority. RSA the proposed project, how each recognized standards for accessibility, encourages innovative approaches to proposed provider will be held including section 508 of the Rehabilitation meet the following requirements: Act. accountable under the proposed (a) Demonstrate, in the narrative structure, and evidence to demonstrate (c) Developing and maintaining a section of the application under a working relationship between the state-of-the-art archiving and ‘‘Significance of the Project,’’ how the applicant and its proposed partners and dissemination system that— proposed project will address the need key stakeholders and other relevant (1) Provides a central location for later for nationally certified sign language groups; and use of TA products, including curricula, interpreters. To meet this requirement, (iii) A plan for communicating, audiovisual materials, Webinars, the applicant must: collaborating, and coordinating with an examples of practices that are promising (1) Demonstrate knowledge of advisory committee; key staff in State or supported by evidence, and any other English/ASL competencies that novice VR agencies, such as State Coordinators relevant TA products; and interpreters must possess in order to for the Deaf; State and local partner (2) Is open and available to the public. enter and to complete an experiential programs; Registry of Interpreters for the (d) Providing a minimum of two Deaf, Inc.; RSA partners, such as the Webinars or video conferences over the 3 A community of practice (CoP) is a group of Council of State Administrators of course of the project to describe and people who work together to solve a persistent problem or to improve practice in an area that is Vocational Rehabilitation and the disseminate information to the field important to them and who deepen their knowledge National Council of State Agencies for about results, challenges, solutions, and and expertise by interacting on an ongoing basis. the Blind; and relevant programs within practices that are promising or CoPs exist in many forms, some large in scale that the Office of Special Education and supported by evidence. deal with complex problems, others small in scale that focus on a problem at a very specific level. For Rehabilitative Services (OSERS). Note: In meeting the requirements for more information on communities of practice, see: (3) Use a conceptual framework to paragraphs (a), (b), and (c) of this section, the www.tadnet.org/pages/510. design experiential learning activities,
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describing any underlying concepts, (3) How the evaluation plan will be (i) Clearly defined responsibilities for assumptions, expectations, beliefs, or implemented and revised, as needed, key project personnel, consultants, and theories, as well as the presumed during the project. The applicant must subcontractors, as applicable; and relationships or linkages among these designate at least one individual with (ii) Timelines and milestones for variables and any empirical support for sufficient dedicated time, experience in accomplishing the project tasks; this framework. evaluation, and knowledge of the (2) Key project personnel and any (4) Be based on current research and project to support the design and consultants and subcontractors make use of practices that are promising implementation of the evaluation. Tasks allocated to the project and how these or supported by evidence. may include, but are not limited to, allocations are appropriate and adequate To meet this requirement, the coordinating with the advisory to achieve the project’s intended applicant must describe— committee and RSA to revise the logic outcomes, including an assurance that (i) How the current research about model to provide for a more such personnel will have adequate adult learning principles and comprehensive measurement of availability to ensure timely implementation science will inform the implementation and outcomes, to reflect communications with stakeholders and proposed TA; and any changes or clarifications to the logic RSA; (ii) How the proposed project will model discussed at the kick-off meeting, (3) The proposed management plan incorporate current research and and to revise the evaluation design and will ensure that the products and practices that are promising or instrumentation proposed in the grant services provided are of high quality; supported by evidence in the application consistent with the logic and development and delivery of its (4) The proposed project will benefit model (e.g., developing quantitative or products and services. from a diversity of perspectives, qualitative data collections that permit (5) Develop products and provide including the advisory committee, as both the collection of progress data and services that are of high quality and well as other relevant groups in its the assessment of project outcomes); sufficient intensity and duration to development and operation. achieve the intended outcomes of the (4) The standards and targets for (f) Address the following application proposed project. To address this determining effectiveness; requirements. The applicant must— requirement, the applicant must (5) How evaluation results will be (1) Include, in Appendix A, a logic describe its proposed activities to used to examine the effectiveness of model that depicts, at a minimum, the identify or develop the knowledge base implementation and progress toward goals, activities, outputs, and intended for practices that are promising or achieving the intended outcomes; and outcomes of the proposed project; supported by evidence in experiential (6) How the methods of evaluation (2) Include, in Appendix A, a learning for novice interpreters. will produce quantitative and Memorandum of Understanding or a (6) Develop products and implement qualitative data that demonstrate Letter of Intent between the lead services to maximize the project’s whether the project activities achieved applicant, members of the consortium, efficiency. To address this requirement, their intended outcomes. other proposed training and TA the applicant must describe— (d) Demonstrate, in the narrative providers, and other relevant partners; (i) How the proposed project will use section of the application under (3) Include, in Appendix A, a technology to achieve the intended ‘‘Adequacy of Project Resources,’’ conceptual framework for the project; project outcomes; and how— (4) Include, in Appendix A, person- (ii) With whom the proposed project (1) The proposed project will loading charts and timelines as will collaborate and the intended encourage applications for employment applicable, to illustrate the management outcomes of this collaboration. from persons who are members of plan described in the narrative; (c) In the narrative section of the groups that have historically been (5) Include, in the budget, attendance application under ‘‘Quality of the underrepresented based on race, color, at the following: Evaluation Plan,’’ include an evaluation national origin, gender, age, or (i) A one and one-half day kick-off plan for the project. To address this disability, as appropriate; meeting in Washington, DC, after receipt requirement, the applicant must (2) The proposed key project of the award; describe— personnel, consultants, and (ii) An annual planning meeting in (1) Evaluation methodologies, subcontractors have the qualifications Washington, DC, with the RSA project officer and other relevant RSA staff including instruments, data collection and experience to provide experiential during each subsequent year of the methods, and analyses that will be used learning to novice interpreters and to project period; and to evaluate the project. Any proposed achieve the project’s intended instruments must be valid and reliable, (iii) A one-day intensive review outcomes; meeting in Washington, DC, during the and the applicant must submit rationale (3) The applicant and any key to support the use of each instrument; third quarter of the third year of the partners have adequate resources to project period. (2) Measures of progress in carry out the proposed activities; and implementation, including the extent to Types of Priorities: (4) The proposed costs are reasonable When inviting applications for a which the project’s activities and in relation to the anticipated results and competition using one or more products have reached their target benefits. priorities, we designate the type of each populations; intended outcomes or (e) Demonstrate, in the narrative priority as absolute, competitive results of the project’s activities in order section of the application under preference, or invitational through a to evaluate those activities; and how ‘‘Quality of the Management Plan,’’ notice in the Federal Register. The well the goals and objectives of the how— effect of each type of priority follows: proposed project, as described in its (1) The proposed management plan 4 Absolute priority: Under an absolute logic model, have been met; will ensure that the project’s intended priority, we consider only applications outcomes will be achieved on time and that meet the priority (34 CFR 4 A logic model communicates how the project will achieve its intended outcomes and provides a within budget. To address this 75.105(c)(3)). framework for both the formative and summative requirement, the applicant must Competitive preference priority: evaluations of the project. describe— Under a competitive preference priority,
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we give competitive preference to an productivity, competition, jobs, the innovation or anticipated behavioral application by (1) awarding additional environment, public health or safety, or changes.’’ points, depending on the extent to State, local, or tribal governments or We are issuing this final priority only which the application meets the priority communities in a material way (also on a reasoned determination that its (34 CFR 75.105(c)(2)(i)); or (2) selecting referred to as an ‘‘economically benefits justify its costs. In choosing an application that meets the priority significant’’ rule); among alternative regulatory over an application of comparable merit (2) Create serious inconsistency or approaches, we selected those that does not meet the priority (34 CFR otherwise interfere with an action taken approaches that maximize net benefits. 75.105(c)(2)(ii)). or planned by another agency; Based on the analysis that follows, the Invitational priority: Under an (3) Materially alter the budgetary Department believes that this regulatory invitational priority, we are particularly impacts of entitlement grants, user fees, action is consistent with the principles interested in applications that meet the or loan programs or the rights and in Executive Order 13563. priority. However, we do not give an obligations of recipients thereof; or We also have determined that this application that meets the priority a (4) Raise novel legal or policy issues regulatory action does not unduly preference over other applications (34 arising out of legal mandates, the interfere with State, local, and tribal CFR 75.105(c)(1)). President’s priorities, or the principles governments in the exercise of their This notice does not preclude us from stated in the Executive order. governmental functions. proposing additional priorities, This final regulatory action is not a In accordance with both Executive requirements, definitions, or selection significant regulatory action subject to orders, the Department has assessed the criteria, subject to meeting applicable review by OMB under section 3(f) of potential costs and benefits, both rulemaking requirements. Executive Order 12866. quantitative and qualitative, of this We have also reviewed this final regulatory action. The potential costs Note: This notice does not solicit are those resulting from statutory applications. In any year in which we choose regulatory action under Executive Order to use this priority, we invite applications 13563, which supplements and requirements and those we have through a notice in the Federal Register. explicitly reaffirms the principles, determined as necessary for structures, and definitions governing administering the Department’s Paperwork Reduction Act of 1995 regulatory review established in programs and activities. Through this priority, experiential As part of its continuing effort to Executive Order 12866. To the extent permitted by law, Executive Order learning and TA will be provided to reduce paperwork and respondent novice interpreters in order for them to burden, the Department provides the 13563 requires that an agency— (1) Propose or adopt regulations only achieve national certification. These general public and Federal agencies upon a reasoned determination that activities will help interpreters to more with an opportunity to comment on their benefits justify their costs effectively meet the communication proposed and continuing collections of (recognizing that some benefits and needs of individuals who are deaf or information in accordance with the costs are difficult to quantify); hard of hearing and individuals who are Paperwork Reduction Act of 1995 (PRA) (2) Tailor its regulations to impose the deaf-blind. The training ultimately will (44 U.S.C. 3506(c)(2)(A)). This helps least burden on society, consistent with improve the quality of VR services and ensure that: The public understands the obtaining regulatory objectives and the competitive integrated employment Department’s collection instructions, taking into account—among other things outcomes achieved by individuals with respondents can provide the requested and to the extent practicable—the costs disabilities. This priority will promote data in the desired format, reporting of cumulative regulations; the efficient and effective use of Federal burden (time and financial resources) is (3) In choosing among alternative funds. minimized, collection instruments are regulatory approaches, select those Intergovernmental Review: This clearly understood, and the Department approaches that maximize net benefits program is subject to Executive Order can properly assess the impact of (including potential economic, 12372 and the regulations in 34 CFR collection requirements on respondents. environmental, public health and safety, part 79. Information about This final priority contains and other advantages; distributive Intergovernmental Review of Federal information collection requirements that impacts; and equity); Programs under Executive Order 12372 are approved by OMB under the (4) To the extent feasible, specify is in the application package for this National Interpreter Education program performance objectives, rather than the program. 1820–0018; this final priority does not behavior or manner of compliance a Accessible Format: Individuals with affect the currently approved data regulated entity must adopt; and disabilities can obtain this document in collection. (5) Identify and assess available an accessible format (e.g., braille, large Executive Orders 12866 and 13563 alternatives to direct regulation, print, audiotape, or compact disc) on including economic incentives—such as request to the program contact person Regulatory Impact Analysis user fees or marketable permits—to listed under FOR FURTHER INFORMATION Under Executive Order 12866, the encourage the desired behavior, or CONTACT. Secretary must determine whether this provide information that enables the Electronic Access to This Document: regulatory action is ‘‘significant’’ and, public to make choices. The official version of this document is therefore, subject to the requirements of Executive Order 13563 also requires the document published in the Federal the Executive Order and subject to an agency ‘‘to use the best available Register. Free Internet access to the review by the Office of Management and techniques to quantify anticipated official edition of the Federal Register Budget (OMB). Section 3(f) of Executive present and future benefits and costs as and the Code of Federal Regulations is Order 12866 defines a ‘‘significant accurately as possible.’’ The Office of available via the Federal Digital System regulatory action’’ as an action likely to Information and Regulatory Affairs of at: www.gpo.gov/fdsys. At this site, you result in a rule that may— OMB has emphasized that these can view this document, as well as all (1) Have an annual effect on the techniques may include ‘‘identifying other documents of this Department economy of $100 million or more, or changing future compliance costs that published in the Federal Register, in adversely affect a sector of the economy, might result from technological text or Portable Document Format
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(PDF). To use PDF you must have Pollution Control District (EKAPCD) SUPPLEMENTARY INFORMATION: Adobe Acrobat Reader, which is portion of the California State Throughout this document, ‘‘we,’’ ‘‘us’’ available free at the site. Implementation Plan (SIP). These and ‘‘our’’ refer to the EPA. You may also access documents of the revisions concern volatile organic Table of Contents Department published in the Federal compounds (VOC) emitted from motor Register by using the article search vehicle and mobile equipment I. Proposed Action feature at: www.federalregister.gov. refinishing operations. Under the II. Public Comments and EPA Responses Specifically, through the advanced authority of the Clean Air Act (CAA or III. EPA Action search feature at this site, you can limit the Act), this action simultaneously IV. Incorporation by Reference your search to documents published by approves a local rule that regulates these V. Statutory and Executive Order Reviews the Department. emission sources and directs California A. Executive Order 12866: Regulatory Planning and Review and Executive Dated: July 19, 2016. to correct rule deficiencies. Order 13563: Improving Regulation and Sue Swenson, DATES: This rule will be effective on Regulatory Review Acting Assistant Secretary for Special August 24, 2016. B. Paperwork Reduction Act (PRA) Education and Rehabilitative Services. ADDRESSES: EPA has established docket C. Regulatory Flexibility Act (RFA) [FR Doc. 2016–17404 Filed 7–22–16; 8:45 am] number EPA–R09–OAR–2016–0105 for D. Unfunded Mandates Reform Act BILLING CODE 4000–01–P this action. Generally, documents in the (UMRA) docket for this action are available E. Executive Order 13132: Federalism electronically at http:// F. Executive Order 13175: Coordination ENVIRONMENTAL PROTECTION www.regulations.gov or in hard copy at With Indian Tribal Governments AGENCY EPA Region IX, 75 Hawthorne Street, G. Executive Order 13045: Protection of San Francisco, California 94105–3901. Children From Environmental Health 40 CFR Part 52 While all documents in the docket are Risks and Safety Risks H. Executive Order 13211: Actions That [EPA–R09–OAR–2016–0105; FRL–9947–69– listed at http://www.regulations.gov, Significantly Affect Energy Supply, Region 9] some information may be publicly Distribution, or Use available only at the hard copy location I. National Technology Transfer and Limited Approval, Limited Disapproval (e.g., copyrighted material, large maps, Advancement Act (NTTAA) of California Air Plan Revisions, multi-volume reports), and some may J. Executive Order 12898: Federal Actions Eastern Kern Air Pollution Control not be available in either location (e.g., To Address Environmental Justice in District confidential business information Minority Populations and Low-Income (CBI)). To inspect the hard copy Population AGENCY: Environmental Protection materials, please schedule an Agency (EPA). I. Proposed Action appointment during normal business ACTION: Final rule. hours with the contact listed in the FOR On April 15, 2016 (81 FR 22204), the SUMMARY: The Environmental Protection FURTHER INFORMATION CONTACT section. EPA proposed a limited approval and Agency (EPA) is finalizing a limited FOR FURTHER INFORMATION CONTACT: limited disapproval of the following approval and limited disapproval of Arnold Lazarus, EPA Region IX, (415) rule that was submitted for revisions to the Eastern Kern Air 972–3024, [email protected]. incorporation into the California SIP.
TABLE 1—SUBMITTED RULE
Local agency Rule No. Rule title Amended Submitted
EKAPCD ...... 410.4A Motor Vehicle and Mobile Equipment Refinishing Operations 03/13/14 07/25/14
We proposed a limited approval Our proposed action contains more under section 110(k)(3) and 301(a), the because we determined that this rule information on the basis for this EPA is simultaneously finalizing a improves the SIP and is largely rulemaking and on our evaluation of the limited disapproval of the rule. consistent with the relevant CAA submittal. This final limited disapproval does requirements. We simultaneously not trigger sanctions or a federal II. Public Comments and EPA proposed a limited disapproval because implementation plan (FIP) clock. Responses some rule provisions conflict with Sanctions will not be imposed under section 110 and part D of the Act. These The EPA’s proposed action provided CAA 179(b) because the submittal of provisions include the following: a 30-day public comment period. During Rule 410.4A is discretionary (i.e., not • Paragraph VI(A), ‘‘VOC Content this period we received no comments. required to be included in the SIP), and EPA will not promulgate a FIP in this Limits,’’ provides VOC limits for cavity III. EPA Action wax, deadener, gasket/gasket sealing instance under CAA 110(c)(1) because material, lubricating wax/compounds No comments were submitted that the disapproval does not reveal a and trunk interior coatings. However, in change our assessment of the rule as deficiency in the SIP for the area that conflict with long-standing guidance on described in our proposed action. such a FIP must correct. Specifically, enforceability such as discussed in the Therefore, as authorized in sections there is no EPA control techniques Bluebook, these terms are not defined in 110(k)(3) and 301(a) of the Act, the EPA guidelines (CTG) for Motor Vehicle and the rule.1 is finalizing a limited approval of the Mobile Equipment Refinishing submitted rule. This action incorporates Operations and, according to CARB’s 1 See ‘‘Issues Relating to VOC Regulation the submitted rule into the California Facility Search Engine, there are no Cutpoints, Deficiencies, and Deviations,’’ (a.k.a., SIP, including those provisions facilities that emit VOC in the EKAPCD Bluebook) EPA OAQPS, May 25, 1988. P2–7. identified as deficient. As authorized for this category for the most recent
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database year of 2013. Accordingly, the D. Unfunded Mandates Reform Act unless to do so would be inconsistent failure of the EKAPCD to adopt (UMRA) with applicable law or otherwise revisions to Rule 410.4A would not This action does not contain any impractical. The EPA believes that this adversely affect the SIP’s compliance unfunded mandate as described in action is not subject to the requirements with the CAA’s requirements, such as UMRA, 2 U.S.C. 1531–1538, and does of section 12(d) of the NTTAA because the requirements for section 182 ozone not significantly or uniquely affect small application of those requirements would reasonably available control technology governments. This action does not be inconsistent with the CAA. (RACT), reasonable further progress, impose additional requirements beyond J. Executive Order 12898: Federal and attainment demonstrations. Note those imposed by state law. Actions To Address Environmental that the submitted rule has been Accordingly, no additional costs to adopted by the EKAPCD and the EPA’s State, local, or tribal governments, or to Justice in Minority Populations and final limited disapproval does not the private sector, will result from this Low-Income Population prevent the local agency from enforcing action. it. The limited disapproval also does not The EPA lacks the discretionary prevent any portion of the rule from E. Executive Order 13132: Federalism authority to address environmental being incorporated by reference into the This action does not have federalism justice in this rulemaking. federally enforceable SIP as discussed in implications. It will not have substantial K. Congressional Review Act (CRA) a July 9, 1992 EPA memo found at: direct effects on the states, on the http://www.epa.gov/nsr/ttnnsr01/gen/ relationship between the national This action is subject to the CRA, and pdf/memo-s.pdf. government and the states, or on the the EPA will submit a rule report to distribution of power and each House of the Congress and to the IV. Incorporation by Reference responsibilities among the various Comptroller General of the United In this rule, the EPA is finalizing levels of government. States. This action is not a ‘‘major rule’’ regulatory text that includes as defined by 5 U.S.C. 804(2). incorporation by reference. In F. Executive Order 13175: Coordination accordance with requirements of 1 CFR With Indian Tribal Governments L. Petitions for Judicial Review 51.5, the EPA is finalizing the This action does not have tribal Under section 307(b)(1) of the Clean incorporation by reference of the implications, as specified in Executive EKAPCD rule described in the Order 13175, because the SIP is not Air Act, petitions for judicial review of amendments to 40 CFR part 52 set forth approved to apply on any Indian this action must be filed in the United below. The EPA has made, and will reservation land or in any other area States Court of Appeals for the continue to make, these documents where the EPA or an Indian tribe has appropriate circuit by September 23, available electronically through demonstrated that a tribe has 2016. Filing a petition for www.regulations.gov and in hard copy jurisdiction, and will not impose reconsideration by the Administrator of at the appropriate EPA office (see the substantial direct costs on tribal this final rule does not affect the finality ADDRESSES section of this preamble for governments or preempt tribal law. of this rule for the purposes of judicial more information). Thus, Executive Order 13175 does not review nor does it extend the time apply to this action. within which a petition for judicial V. Statutory and Executive Order review may be filed, and shall not Reviews G. Executive Order 13045: Protection of postpone the effectiveness of such rule Additional information about these Children From Environmental Health or action. This action may not be statutes and Executive Orders can be Risks and Safety Risks challenged later in proceedings to found at http://www2.epa.gov/laws- The EPA interprets Executive Order enforce its requirements (see section regulations/laws-and-executive-orders. 13045 as applying only to those 307(b)(2)). regulatory actions that concern A. Executive Order 12866: Regulatory environmental health or safety risks that List of Subjects in 40 CFR Part 52 Planning and Review and Executive the EPA has reason to believe may Environmental protection, Air Order 13563: Improving Regulation and disproportionately affect children, per pollution control, Incorporation by Regulatory Review the definition of ‘‘covered regulatory reference, Intergovernmental relations, This action is not a significant action’’ in section 2–202 of the Ozone, Particulate matter, Reporting regulatory action and was therefore not Executive Order. This action is not and recordkeeping requirements, submitted to the Office of Management subject to Executive Order 13045 Volatile organic compounds. and Budget (OMB) for review. because it does not impose additional Dated: June 3, 2016. B. Paperwork Reduction Act (PRA) requirements beyond those imposed by state law. Alexis Strauss, This action does not impose an information collection burden under the H. Executive Order 13211: Actions That Acting Regional Administrator, Region IX. PRA because this action does not Significantly Affect Energy Supply, Distribution, or Use Part 52, Chapter I, Title 40 of the Code impose additional requirements beyond of Federal Regulations is amended as those imposed by state law. This action is not subject to Executive follows: Order 13211, because it is not a C. Regulatory Flexibility Act (RFA) significant regulatory action under PART 52—APPROVAL AND I certify that this action will not have Executive Order 12866. PROMULGATION OF a significant economic impact on a IMPLEMENTATION PLANS substantial number of small entities I. National Technology Transfer and under the RFA. This action will not Advancement Act (NTTAA) ■ impose any requirements on small Section 12(d) of the NTTAA directs 1. The authority citation for Part 52 entities beyond those imposed by state the EPA to use voluntary consensus continues to read as follows: law. standards in its regulatory activities Authority: 42 U.S.C. 7401 et seq.
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Subpart F—California out the purposes of the section 307(d)’s CAA prohibits emissions of any air notice-and-comment rulemaking pollutant in amounts which will ■ 2. Section 52.220 is amended by requirements. By this action, the EPA is contribute significantly to adding paragraphs (c)(231)(i)(B) (9) and making that determination. The EPA is nonattainment in, or interfere with (c)(447)(i)(D)(5) to read as follows: therefore extending the deadline for maintenance by, any other state with acting on the petition to no later than respect to any NAAQS. The petition § 52.220 Identification of plan. January 25, 2017. asserts that emissions from Brunner * * * * * DATES: This final rule is effective on July Island’s three major boiler units are (c) * * * 25, 2016. linked to downwind nonattainment and (231) * * * ADDRESSES: The EPA has established a maintenance ozone receptor sites in (i) * * * Connecticut for the 2008 ozone NAAQS (B) * * * docket for this action under Docket ID No. EPA–HQ–OAR–2016–0347. All and that this impact would be mitigated (9) Previously approved on November by regulation of nitrogen oxide 13, 1998 in paragraph (c)(231)(i)(B)(4) documents in the docket are listed on the http://www.regulations.gov Web emissions at the plant or shutting down and now deleted with replacement in the plant. site. Although listed in the index, some (c)(447)(i)(D)(5) Rule 410.4A amended Pursuant to CAA section 126(b), the information is not publicly available, on March 7, 1996. EPA must make the finding requested in e.g., Confidential Business Information * * * * * the petition, or must deny the petition, or other information whose disclosure is (447) * * * within 60 days of its receipt. Under (i) * * * restricted by statute. Certain other CAA section 126(c), any existing (D) * * * material, such as copyrighted material, sources for which the EPA makes the (5) Rule 410.4A, ‘‘Motor Vehicle and is not placed on the Internet and will be requested finding must cease operations Mobile Equipment Refinishing publicly available only in hard copy within 3 months of the finding, except Operations,’’ amended on March 13, form. Publicly available docket that the source may continue to operate 2014. materials are available electronically if it complies with emission limitations through http://www.regulations.gov. * * * * * and compliance schedules (containing FOR FURTHER INFORMATION CONTACT: [FR Doc. 2016–17192 Filed 7–22–16; 8:45 am] Ms. increments of progress) that the EPA Gobeail McKinley, Office of Air Quality BILLING CODE 6560–50–P may provide to bring about compliance Planning and Standards (C504–04), U.S. with the applicable requirements as EPA, Research Triangle Park, North expeditiously as practical but no later ENVIRONMENTAL PROTECTION Carolina 27709, telephone number (919) than 3 years from the date of the AGENCY 541–5246, email: finding. [email protected]. CAA section 126(b) further provides 40 CFR Part 52 SUPPLEMENTARY INFORMATION: that the EPA must hold a public hearing on the petition. The EPA’s action under [EPA–HQ–OAR–2016–0347; FRL–9949–42– I. Background and Legal Requirements OAR] section 126 is also subject to the for Interstate Air Pollution procedural requirements of CAA section Extension of Deadline for Action on This is a procedural action to extend 307(d). See CAA section 307(d)(1)(N). the Section 126 Petition From the deadline for the EPA to respond to One of these requirements is notice-and- Connecticut a petition from the state of Connecticut comment rulemaking, under section filed pursuant to CAA section 126(b). 307(d)(3)–(6). AGENCY: Environmental Protection The EPA received the petition on June In addition, CAA section 307(d)(10) Agency (EPA). 1, 2016. The petition requests that the provides for a time extension, under ACTION: Final rule. EPA make a finding under section certain circumstances, for a rulemaking 126(b) of the CAA that the Brunner subject to CAA section 307(d). SUMMARY: In this action, the Island Steam Electric Station located in Specifically, CAA section 307(d)(10) Environmental Protection Agency (EPA) York County, Pennsylvania is operating provides: is determining that 60 days is in a manner that emits air pollutants in Each statutory deadline for promulgation insufficient time to complete the violation of the provisions of section of rules to which this subsection applies technical and other analyses and public 110(a)(2)(D)(i)(I) of the CAA with which requires promulgation less than six notice-and-comment process required respect to the 2008 ozone NAAQS. months after date of proposal may be for our review of a petition submitted by Section 126(b) of the CAA authorizes extended to not more than six months after the state of Connecticut pursuant to date of proposal by the Administrator upon states to petition the EPA to find that a a determination that such extension is section 126 of the Clean Air Act (CAA). major source or group of stationary The petition requests that the EPA make necessary to afford the public, and the sources in upwind states emits or would agency, adequate opportunity to carry out the a finding that the Brunner Island Steam emit any air pollutant in violation of the purposes of the subsection. Electric Station located in York County, prohibition of CAA section Pennsylvania, emits air pollution that CAA section 307(d)(10) may be 110(a)(2)(D)(i) 1 by contributing significantly contributes to applied to section 126 rulemakings significantly to nonattainment or nonattainment and interferes with because the 60-day time limit under maintenance problems in downwind maintenance of the 2008 ozone national CAA section 126(b) necessarily limits states. Section 110(a)(2)(D)(i)(I) of the ambient air quality standards (NAAQS) the period for promulgation of a final in Connecticut. Under section rule after proposal to less than 6 1 The text of CAA section 126 codified in the months. 307(d)(10) of CAA, the EPA is United States Code cross references CAA section authorized to grant a time extension for 110(a)(2)(D)(ii) instead of CAA section II. Final Rule responding to the petition if the EPA 110(a)(2)(D)(i). The courts have confirmed that this is a scrivener’s error and the correct cross reference A. Rule determines that the extension is is to CAA section 110(a)(2)(D)(i). See Appalachian necessary to afford the public, and the Power Co. v. EPA, 249 F.3d 1032, 1040–44 (D.C. Cir. In accordance with CAA section agency, adequate opportunity to carry 2001). 307(d)(10), the EPA is determining that
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the 60-day period afforded by CAA substantive review of the CAA section any state, local or tribal governments or section 126(b) for responding to the 126 petition. the private sector. petition from the state of Connecticut is C. Effective Date Under the APA E. Executive Order 13132: Federalism not adequate to allow the public and the agency the opportunity to carry out the This action is effective on July 25, This action does not have federalism purposes of CAA section 307(d). 2016. Under the APA, 5 U.S.C. implications. It will not have substantial Specifically, the 60-day period is 553(d)(3), agency rulemaking may take direct effects on the states, on the insufficient for the EPA to complete the effect before 30 days after the date of relationship between the national necessary technical review, develop an publication in the Federal Register if government and the states, or on the adequate proposal, and allow time for the agency has good cause to mandate distribution of power and notice and comment, including an an earlier effective date. This action—a responsibilities among the various opportunity for public hearing, on a deadline extension—must take effect levels of government. immediately because its purpose is to proposed finding regarding whether the F. Executive Order 13175: Consultation extend by 6 months the deadline for Brunner Island Steam Electric Station and Coordination With Indian Tribal action on the petition. As discussed identified in the CAA section 126 Governments petition contributes significantly to earlier, the EPA intends to use the 6- This action does not have tribal nonattainment or interferes with month extension period to develop a implications, as specified in Executive maintenance of the 2008 ozone NAAQS proposal on the petition and provide Order 13175. This good cause final in Connecticut. Moreover, the 60-day time for public comment before issuing action simply extends the date for the period is insufficient for the EPA to the final rule. It would not be possible EPA to take action on a petition. Thus, review and develop response to any for the EPA to complete the required notice and comment and public hearing Executive Order 13175 does not apply public comments on a proposed finding, to this rule. or testimony supplied at a public process within the original 60-day hearing, and to develop and promulgate period noted in the statute. These G. Executive Order 13045: Protection of a final finding in response to the reasons support an immediate effective Children From Environmental Health petition. The EPA is in the process of date. and Safety Risks determining an appropriate schedule for III. Statutory and Executive Order The EPA interprets Executive Order action on the CAA section 126 petition. Reviews 13045 as applying only to those This schedule must afford the EPA A. Executive Orders 12866: Regulatory regulatory actions that concern adequate time to prepare a proposal that Planning and Review and Executive environmental health or safety risks that clearly elucidates the issues to facilitate Order 13563: Improving Regulation and the EPA has reason to believe may public comment, and must provide Regulatory disproportionately affect children, per adequate time for the public to comment the definition of ‘‘covered regulatory and for the EPA to review and develop This action is exempt from review by action’’ in section 2–202 of the responses to those comments prior to the Office of Management and Budget Executive Order. This action is not issuing the final rule. As a result of this because it simply extends the date for subject to Executive Order 13045 extension, the deadline for the EPA to the EPA to take action on a petition. because it does not concern an act on the petition is January 25, 2017. B. Paperwork Reduction Act (PRA) environmental health risk or safety risk. B. Notice and Comment Under the This action does not impose an H. Executive Order 13211: Actions That Administrative Procedures Act (APA) information collection burden under the Significantly Affect Energy Supply, PRA. This good cause final action Distribution or Use This document is a final agency simply extends the date for the EPA to action, but may not be subject to the This action is not subject to Executive take action on a petition and does not Order 13211, because it is not a notice-and-comment requirements of impose any new obligations or the APA, 5 U.S.C. 553(b). The EPA significant regulatory action under enforceable duties on any state, local or Executive Order 12866. believes that, because of the limited tribal governments or the private sector. time provided to make a determination, It does not contain any recordkeeping or I. National Technology Transfer and the deadline for action on the CAA reporting requirements. Advancement Act (NTTAA) section 126 petition should be extended C. Regulatory Flexibility Act (RFA) This rulemaking does not involve pursuant to section 307(d)(10) of CAA. technical standards. Congress may not have intended a CAA This action is not subject to the RFA. section 307(d)(10) extension The RFA applies only to rules subject to J. Executive Order 12898: Federal determination to be subject to notice- notice-and-comment rulemaking Actions To Address Environmental and-comment rulemaking. However, to requirements under the APA, 5 U.S.C. Justice in Minority Populations and the extent that this extension 553, or any other statute. This rule is not Low-Income Populations determination otherwise would require subject to notice-and-comment The EPA believes that this action is notice and opportunity for public requirements because the agency has not subject to Executive Order 12898 (59 comment, there is good cause within the invoked the APA ‘‘good cause’’ FR 7629, February 16, 1994) because it meaning of 5 U.S.C. 553(b)(3)(B) not to exemption under 5 U.S.C. 553(b). does not establish an environmental apply those requirements here. health or safety standard. This good D. Unfunded Mandates Reform Act Providing for notice and comment of cause final action simply extends the (UMRA) this extension determination under date for the EPA to take action on a section 307(d)(10) of CAA would be This action does not contain any petition and does not have any impact impracticable because of the limited unfunded mandate of $100 million or on human health or the environment. time provided for making this more as described in UMRA, 2 U.S.C. determination, and would be contrary to 1531–1538, and does not significantly or K. Congressional Review Act (CRA) the public interest because it would uniquely affect small governments. The This action is subject to the CRA, and divert agency resources from the action imposes no enforceable duty on the EPA will submit a rule report to
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1 each House of the Congress and to the fine particle (PM2.5) National Ambient NAAQS’’). Herein, we refer to our Comptroller General of the United Air Quality Standards. This December 9, 2014 proposed rule as the States. The CRA allows the issuing determination is based upon complete ‘‘proposed rule.’’ agency to make a rule effective sooner (or otherwise validated), quality-assured In our proposed rule, we explained than otherwise provided by the CRA if and certified ambient air monitoring that in making an attainment the agency makes a good cause finding data showing that the area has determination, the EPA generally relies that notice-and-comment rulemaking monitored attainment of the 1997 on complete, quality-assured and procedures are impracticable, annual and 24-hour PM2.5 NAAQS certified data gathered at State and unnecessary or contrary to the public based on the 2011–2013 monitoring Local Air Monitoring Stations (SLAMS) interest (5 U.S.C. 808(2)). The EPA has period, and that all complete data and entered into the EPA’s Air Quality made a good cause finding for this rule available since that time period indicate System (AQS) database.2 Under 40 CFR as discussed in Section II.B of this that the area continues to attain. Based 50.7 (‘‘National primary and secondary document, including the basis for that on the above determination, the ambient air quality standards for PM2.5’’) finding. requirements for this area to submit and appendix N to 40 CFR part 50 certain state implementation plan (SIP) (‘‘Interpretation of the National Ambient IV. Statutory Authority revisions related to attainment shall be Air Quality Standards for PM2.5’’), the The statutory authority for this action suspended for so long as the area 1997 annual and 24-hour PM2.5 NAAQS is provided by sections 110, 126 and continues to attain the 1997 annual and is met when each monitoring site in the 307 of the CAA as amended (42 U.S.C. 24-hour PM2.5 standards. area has a design value at or below the standard.34 7410, 7426 and 7607). DATES: This rule is effective on August The EPA proposed the determination V. Judicial Review 24, 2016. of attainment for the South Coast area Under section 307(b)(1) of the CAA, ADDRESSES: The EPA has established a based upon a review of the monitoring judicial review of this final rule is docket for this action under Docket ID network operated by the South Coast available only by the filing of a petition No. EPA–R09–OAR–2014–0708. All Air Quality Management District for review in the U.S. Court of Appeals documents in the docket are listed on (SCAQMD) and the data collected at the for the for the appropriate circuit by the http://www.regulations.gov Web monitoring sites operating during the September 23, 2016. Under section site. Although listed in the index, some most recent three-year period from 307(b)(2) of the CAA, the requirements information is not publicly available, which data was available at the time of that are the subject of this final rule may e.g., confidential business information the proposed rule (i.e., 2011 to 2013). not be challenged later in civil or (CBI) or other information whose Based on this review, the EPA found criminal proceedings brought by us to disclosure is restricted by statute. that complete (or otherwise validated), enforce these requirements. Certain other material, such as quality-assured and certified data for the copyrighted materials, is not placed on South Coast showed that the annual and List of Subjects in 40 CFR Part 52 the Internet and will be publicly 24-hour design values for the 2011–2013 Environmental protection, available only in hard copy form. period were equal to or less than 15 Administrative practices and Publicly available docket materials are micrograms per cubic meter (m/m3) and procedures, Air pollution control, available through http:// 65 m/m3, respectively, at all monitoring Electric utilities, Incorporation by www.regulations.gov, or please contact sites and that, therefore, the South Coast reference, Intergovernmental relations, the person identified in the FOR FURTHER had attained the 1997 PM2.5 NAAQS. Sulfur dioxide. INFORMATION CONTACT section for See the data summary tables on pages Dated: July 14, 2016. additional availability information. 73003 and 73004 of our proposed rule. In conjunction with and based upon Gina McCarthy, FOR FURTHER INFORMATION CONTACT: our proposed determination that the Administrator. Wienke Tax, (415) 947–4192, or by email at [email protected]. South Coast had attained the standard, [FR Doc. 2016–17412 Filed 7–22–16; 8:45 am] SUPPLEMENTARY INFORMATION: BILLING CODE 6560–50–P 1 The South Coast includes Orange County, the Throughout this document, wherever southwestern two-thirds of Los Angeles County, ‘‘we’’, ‘‘us’’ or ‘‘our’’ are used, we mean southwestern San Bernardino County, and western ENVIRONMENTAL PROTECTION the EPA. Riverside County (see 40 CFR 81.305). AGENCY 2 AQS is EPA’s repository for ambient air quality Table of Contents data. Data completeness requirements for a given year are met when at least 75 percent of the 40 CFR Part 52 I. Summary of Proposed Action scheduled sampling days for each quarter have II. Evaluation of 2014 and 2015 Data [EPA–R09–OAR–2014–0708; FRL–9949–47- valid data. III. Public Comments and the EPA’s 3 Region 9] The annual PM2.5 standard design value is the Responses 3-year average of annual mean concentration, and IV. Final Action the 1997 annual PM2.5 NAAQS is met when the Clean Data Determination for 1997 V. Statutory and Executive Order Reviews annual standard design value at each eligible PM2.5 Standards; California—South monitoring site is less than or equal to 15.0 mg/m3. Coast; Applicability of Clean Air Act I. Summary of Proposed Action In 2012, we established a more stringent annual 3 Requirements PM2.5 NAAQS of 12.0 mg/m , 78 FR 3086 (January On December 9, 2014 (79 FR 72999), 15, 2013) (‘‘2012 PM2.5 NAAQS’’), but the 1997 AGENCY: Environmental Protection the EPA proposed to determine that the annual PM2.5 NAAQS remains in effect. 4 Agency (EPA). Los Angeles-South Coast Air Basin The 24-hour PM2.5 standard design value is the (‘‘South Coast’’) nonattainment area had 3-year average of annual 98th percentile 24-hour ACTION: Final rule. average values recorded at each eligible monitoring attained the 1997 annual and 24-hour site, and the 1997 24-hour PM2.5 NAAQS is met SUMMARY: The Environmental Protection national ambient air quality standards when the 24-hour standard design value at each Agency (EPA) is taking final action to (NAAQS or ‘‘standards’’) for fine monitoring site is less than or equal to 65 mg/m3. particles (generally referring to particles In 2006, we established a more stringent 24-hour determine that the South Coast air PM NAAQS of 35 mg/m3, 71 FR 61144 (October less than or equal to 2.5 micrometers in 2.5 quality planning area in California has 17, 2006) (‘‘2006 PM2.5 NAAQS’’), but the 1997 24- attained the 1997 annual and 24-hour diameter, PM2.5)(‘‘1997 PM2.5 hour PM2.5 NAAQS remains in effect.
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the EPA also proposed to determine that regarding eligibility of data from certain addition of the near-road sites, the the obligation under the Clean Air Act collocated monitors for comparison to SCAQMD network of PM2.5 monitoring (CAA or ‘‘Act’’) to submit any remaining the NAAQS. sites continues to meet the minimum attainment-related SIP revisions arising At the time of our proposed rule, the requirements of our monitoring from classification of the South Coast as PM2.5 monitoring network in the South regulations even in the absence of the a Moderate nonattainment area under Coast consisted of 18 SLAMS. three discontinued sites.7 subpart 4 of part D (of title I of the Act) Monitoring networks frequently change With respect to the eligibility of data for the 1997 PM2.5 NAAQS was not over time in response to changing from collocated monitors for applicable for so long as the area circumstances, requirements and needs. comparison with the NAAQS, our continues to attain the 1997 PM2.5 Since our proposed rule, the SCAQMD regulations provide that monitoring NAAQS. These attainment-related has discontinued monitoring at three agencies must assess data from PM2.5 requirements include, but are not sites (Burbank, Riverside (Magnolia) and FEM monitors using certain limited to, the part D, subpart 4 Ontario (Fire Station)) and has performance criteria where the data are obligations to provide an attainment established near-road PM2.5 monitoring identified as not of sufficient demonstration pursuant to section sites along Route 710 in Long Beach and comparability to a collocated FRM, and 189(a)(1)(B), the reasonably available along Route 60 in Ontario.5 During at the monitoring agency requests that the control measures (RACM) provisions of least portions of 2014 and 2015, FEM data should not be used for section 189(a)(1)(C) and the reasonable SCAQMD operated collocated filter- comparison to the NAAQS.8 As further progress (RFP) provisions of based Federal Reference Method (FRM) described on page 73003 of the section 189(c). In so doing, we proposed and Federal Equivalent Method (FEM) proposed rule, the SCAQMD requested to apply the EPA’s Clean Data Policy to Beta Attenuation Method (BAM) that the 2011–2013 data from the the 1997 PM2.5 NAAQS to suspend the samplers at seven sites: Anaheim, collocated PM2.5 FEM monitors at seven Burbank, Central Los Angeles, North attainment-related SIP submittal monitoring sites in the PM2.5 monitoring obligations under subpart 4 of part D (of Long Beach, South Long Beach, network be considered not eligible for title I of the CAA), since the South Coast Rubidoux and Mira Loma. comparison to the NAAQS as part of its nonattainment area is considered a With respect to the discontinued sites, 2014 Annual Air Quality Monitoring ‘‘Moderate’’ nonattainment area under SCAQMD has requested approval from Network Plan. The EPA approved the subpart 4. See page 73005 of our the EPA to suspend monitoring at the request by letter dated September 9, proposed rule. In proposing to apply the Burbank and Riverside (Magnolia) sites 2014. Similarly, as part of the 2015 Clean Data Policy to the 1997 PM2.5 until suitable replacement sites can be Annual Air Quality Monitoring Network 6 NAAQS, we explained that we are located. SCAQMD is not planning to Plan, the SCAQMD submitted an applying the same statutory replace the Ontario (Fire Station) site ineligibility determination request for interpretation with respect to the but rather to consolidate measurements data from collocated FEM monitors over implications of clean data from that site with nearby sites and thus the 2012–2014 period, and on May 2, determinations that the Agency has long has requested approval from the EPA to 2016, the EPA approved that request.9 applied in regulations for the 1997 8- discontinue, rather than suspend, Both determinations were made based hour ozone and PM2.5 NAAQS and in monitoring at the Ontario (Fire Station) on assessments of the data showing that individual rulemakings for the 1-hour site. The EPA has not taken action on bias in the FEM data (relative to ozone, coarse particle (PM10) and lead the requests due to insufficient collocated FRM data) exceeded EPA’s NAAQS. information, but is working with the performance criteria for acceptable Please see the proposed rule for more SCAQMD to provide the basis to resolve slope and intercept as defined in 40 CFR detailed information concerning the the requests by including sufficient 58.11(e). PM NAAQS, designations of PM 2.5 2.5 information in SCAQMD’s upcoming In the South Coast, SCAQMD has nonattainment areas, the regulatory 2016 Annual Air Quality Monitoring designated the PM FRM samplers as basis for determining attainment of the 2.5 Network Plan (due for submittal to the the primary monitors where FRM and NAAQS, the SCAQMD’s PM 2.5 EPA in July 2016). None of the three FEM monitors are collocated at a given monitoring network, the EPA’s review discontinued sites (Burbank, Riverside site. Under our regulations, comparisons and evaluation of the data and the (Magnolia) and Ontario (Fire Station)) with the PM NAAQS are made on a rationale and implications for 2.5 was ever the design value site in the site-level, not a monitor-level basis, and application of the Clean Data Policy to South Coast for PM2.5, and given that the the 1997 PM NAAQS. the default dataset for a site is based on 2.5 determination of attainment is based on the designated primary monitor’s II. Evaluation of 2014 and 2015 Data the concentrations measured at the recorded concentrations.10 Collocated design value site, the fact that the EPA monitors may be used to augment the We noted in our proposed rule that, has not yet approved the relocation or at that time, AQS included no PM2.5 default dataset to fill in data gaps; closure of the three monitoring sites however, collocated monitor data are data for year 2014 for the South Coast, does not preclude taking final action on but that several quarters of preliminary ineligible for this purpose if the EPA has the attainment determination. approved a request from a district to data were expected to be uploaded to With respect to the two newly- AQS prior to the EPA’s final action. See approve a determination that such data established near-road PM2.5 monitoring page 73003 of the proposed rule. We sites, the EPA has approved the sites also indicated that we would review the 7 See letter and enclosures from Gretchen and has determined that, with the Busterud, Acting Deputy Director, Air Division, preliminary 2014 data prior to taking EPA Region IX, to Matt Miyasato, Deputy Executive final action to ensure that 2014 data are 5 See SCAQMD, Annual Air Quality Monitoring Officer, Science and Technology Advancement, consistent with the determination of Network Plan, July 2015, pages 16 and 17. SCAQMD, dated October 29, 2015. attainment. In the paragraphs that SCAQMD submitted the 2015 network plan to the 8 40 CFR 58.11(e). follow, before we discuss the data for EPA on July 1, 2015. See letter from Rene M. 9 See letter from Meredith Kurpius, Manager, Air Bermudez, Principal Air Quality Instrument Quality Analysis Office, Air Division, EPA Region 2014 and 2015, we discuss changes to Specialist, SCAQMD, to Meredith Kurpius, Ph.D., IX, to Jason Low, Ph.D., South Coast Air Quality the SCAQMD PM2.5 ambient monitoring EPA Region IX, July 1, 2015. Management District, dated May 2, 2016. network and the EPA’s determination 6 Id., at appendix D, pages 1 and 2. 10 40 CFR part 50, appendix N, section 3.0(d).
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are ineligible for NAAQS comparison associated with that project. The criterion, as defined by the QA purposes. In this instance, the EPA has SCAQMD’s weighing room reopened on Handbook, SCAQMD has invalidated approved such ineligibility requests for December 4, 2014, and the QA issues these data. Therefore these data will not collocated PM2.5 FEM monitoring data affecting 2014 data did not affect data be considered as valid data for the for both the 2011–2013 and 2012–2014 collected in 2015. purposes of this action.14 Given the periods. The requirements in 40 CFR part 50, extent of invalidated data, the dataset appendix L, section 8.3.6 state that post- With respect to the data, all four for quarter four of 2014 is incomplete sample conditioning and weighing shall quarters for 2014 and 2015 have now from all of the monitoring sites, not exceed 30 days. This refers to the been uploaded, and the SCAQMD has resulting in an incomplete year for 2014. amount of time between when the Unlike the data for 2014, however, the certified that 2014 and 2015 data are sample is collected and when the 11 data collected during 2015 are complete quality-assured. As part of the 2014 sample is post-weighed. This is (or nearly complete) for all four quarters and 2015 data review process, we commonly referred to as the ‘‘post- from all monitors.15 For 2015, the basin- reviewed raw data reports for SCAQMD sample hold time requirement’’ and, per wide high-site annual average and (98th monitoring sites. With respect to 2014 EPA guidance (‘‘QA Handbook’’), is percentile) 24-hour-average PM data, we noted that significant portions considered a ‘‘critical criteria’’.13 2.5 concentrations are 14.5 mg/m3 and 43 of the 2014 data had been flagged with Adherence to this requirement is mg/m3, respectively, based on complete a number of Quality Assurance (QA) important because loss of mass is or nearly complete datasets for 2015. qualifier flags. Specifically, portions of possible with excessive post-sample During 2015, the high site for the annual the 2014 data in quarters one, two, three hold times, which would likely bias average was the near-road Ontario and four were flagged with ‘‘QX’’ (does data low. not meet QC criteria) and portions of As described in section 17.3.3 and (Route 60) site, and the high site for the data in quarter four were flagged with appendix D of the QA Handbook, for 98th percentile 24-hour concentration was the Mira Loma site. Because the ‘‘1’’ (deviation from a CFR/critical PM2.5, critical criteria are the specific criteria requirement).12 An in-depth requirements in 40 CFR 50 appendix L concentrations fall below the relevant 3 review of the data revealed that the ‘‘1’’ and 40 CFR 58 appendix A that have NAAQS (15.0 mg/m , annual average 3 and ‘‘QX’’ flags were associated with been deemed critical to maintaining the and 65 mg/m , 24-hour average), they are deviations from the criteria in 40 CFR integrity of a sample or group of consistent with the 2011–2013 data part 50 appendix L, sections 8.3.6 and samples. The QA handbook further upon which the determination of 8.3.5, respectively. Some of the QA explains that observations that do not attainment is based. issues during 2014 stem from meet each and every criterion on the Lastly, we find further support for the arrangements made by SCAQMD in Critical Criteria Table should be conclusion that the South Coast has anticipation of the agency’s temporary invalidated unless there are compelling attained the 1997 PM2.5 standard in a closure of its weighing room to allow for reasons and justification for not doing review of the long-term trends in PM2.5 an upgrade to that facility and in so. Since a portion of the 2014 data in concentrations in the South Coast as response to construction delays quarter four has not met a critical summarized below in Table 1.
TABLE 1—SOUTH COAST BASIN-WIDE HIGH ANNUAL AND 24-HOUR PM2.5 CONCENTRATIONS, 2001–2015
98th Percentile Annual 24-hour Year average average (μg/m3) a (μg/m3) b
2001 ...... 31.0 74 2002 ...... 27.5 66 2003 ...... 24.8 77 2004 ...... 22.1 72 2005 ...... 20.9 58 2006 ...... 20.8 54 2007 ...... 20.9 71 2008 ...... 18.3 47 2009 ...... 17.2 43 2010 ...... 15.2 36 2011 ...... 15.3 37 2012 ...... 15.1 36 2013 ...... 14.1 38 2014 ......
11 For the letter of certification of 2014 data, see 13 See EPA’s Quality Assurance Handbook for Air or greater sampling days with valid data) except for: the letter from Matt M. Miyasato, Ph.D., Deputy Pollution Measurement Systems, Volume II, May, (1) Quarter one at the Long Beach—Route 710 near- Executive Officer, Science and Technology 2013 (EPA–454/B–13–003). road monitor (AQS ID #06–037–4008) during which Advancement, SCAQMD, to Jared Blumenfeld, 14 On May 5, 2016, SCAQMD replaced the data 74 percent of sampling days have valid data; and Regional Administrator, EPA Region IX, dated May code ‘‘1’’ with the null data code ‘‘AR’’ (lab error) (2) quarter four at the Anaheim monitor (AQS ID 1, 2015. For the letter of certification of 2015 data, see the letter from Laki Tisopulos, Ph.D., P.E., for post-sample hold time requirement # 06–059–0007) during which 43 percent of Assistant Deputy Executive Officer, Science and noncompliant data and therefore removed the data sampling days have valid data. The Long Beach— Technology Advancement, SCAQMD, to Deborah from the regulatory data record. See 2014 Raw Data Route 710 near-road monitor began operating in _ _ Jordan, Air Division Director, EPA Region IX, April Report (AMP 350), May 5, 2016. SouthCoast PM2.5 2015. The Anaheim monitor has been operating for _ _ 29, 2016. RawDataReport PostSample Removed.pdf. many years but has never been the design value site 12 See 2014 Raw Data Report (AMP 350, April 14, 15 The data from all quarters of 2015 from all of within the South Coast. 2016, SouthCoast_PM2.5_RawDataReport_2014.pdf). the monitoring sites are complete (i.e., 75 percent
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TABLE 1—SOUTH COAST BASIN-WIDE HIGH ANNUAL AND 24-HOUR PM2.5 CONCENTRATIONS, 2001–2015—Continued
98th Percentile Annual 24-hour Year average average (μg/m3) a (μg/m3) b
2015 ...... 14.5 43 a Basin-wide high annual-average concentration is from the Rubidoux site for 2001–2005, the Mira Loma site from 2006–2013, and the Ontario (Route 60) site for 2015. Bold values represent exceedances of the applicable 1997 standard. b Basin-wide high 98th percentile 24-hour average concentration is from the Rubidoux site for 2001–2003, 2005, and 2006; the San Bernardino site for 2004 and 2007; the Mira Loma site for 2008, 2010, 2011, 2013, and 2015; the Azusa site for 2009; and the Fontana site for 2012. Bold values represent exceedances of the applicable 1997 standard. Source: AQS Design Value Reports, dated October 6, 2014, October 7, 2014, and May 5, 2016.
As shown in Table 1, basin-wide that the South Coast is not attaining the South Coast is not currently attaining high-site PM2.5 concentrations in the 1997 PM2.5 standards, and because the the 1997 PM2.5 standards. We disagree. South Coast declined rapidly from 2001 South Coast is not attaining the First, CARB’s AQMIS combines to 2009. In more recent years, the standard, suspension of attainment- preliminary (real-time) data with official decline has been more gradual and has related SIP submittal requirements, as (historical) data. By their nature, even started to level out; however, the proposed by the EPA, is inappropriate. preliminary data are subject to change level reached in recent years are below In support of their assertion, Health and may be subject to adjustment, the 1997 PM2.5 NAAQS of (less than or Advocates present annual average PM2.5 substitution or exclusion under equal to) 15.0 mg/m3 (annual average) data for six monitoring sites in the applicable monitoring regulations. In and 65 mg/m3 (98th percentile 24-hour South Coast for year 2014 downloaded this instance, the annual average PM2.5 average). We have concluded that South from the California Air Resources concentrations cited by Health Coast attained the 1997 PM2.5 standard Board’s (CARB’s) Air Quality and Advocates at four of the monitoring sites by the end of 2013, and this conclusion Meteorological Information System (Central Los Angeles, Rubidoux, Mira is supported by the data collected (AQMIS) Web site (http:// Loma and Burbank) reflect data during 2015 and the long-term trend www.arb.ca.gov/aqmis2/aqmis2.php). collected by continuous PM2.5 FEM data of PM2.5 concentrations in the Specifically, Health Advocates present monitors for which the SCAQMD has South Coast that show signs of leveling the following data downloaded from requested an ineligibility determination out at a level consistent with attainment AQMIS: (i.e., for comparison to the NAAQS), of that standard. and because the EPA has approved the 2014 Annual SCAQMD’s request, the continuous III. Public Comments and the EPA’s Monitoring site mean PM FEM data are excluded from (μg/m3) 2.5 Responses NAAQS attainment determinations. The EPA’s proposed rule provided a Central Los Angeles—Los With respect to the annual average PM2.5 30-day public comment period. Upon Angeles (Main Street) ...... 18.8 concentrations cited by Health request, we extended the comment Metropolitan Riverside Coun- Advocates at the two other monitoring period 14 days, from January 8th to ty—Rubidoux ...... 15.6 sites (Riverside (Magnolia) and Upland), January 22nd, 2015.16 We received one Riverside—Magnolia ...... 16.3 the data reflect non-FEM methods and set of comments on our proposed rule, Mira Loma—Mira Loma (Van are therefore not eligible for comparison Buren) ...... 19.2 18 a letter from Earthjustice on behalf of a with the PM2.5 NAAQS. group that Earthjustice refers to Burbank—W Palm Ave ...... 19.8 Second, as discussed in detail in San Bernardino—Upland ...... 17.9 collectively as ‘‘Health Advocates’’.17 section II of this document, a review of We summarize the comments from Lastly, Health Advocates assert that, the only complete, quality-assured data Health Advocates and respond to them in light of 2014 data showing violations available after the 2011–2013 period, below. of the 1997 PM standard, the EPA that is, the 2015 PM2.5 ambient data Comment #1: Health Advocates assert 2.5 must reclassify the South Coast as a collected in the South Coast, supports that 2014 monitoring data demonstrate ‘‘Serious’’ nonattainment area under EPA’s determination that the area is CAA section 188(b)(2) and require the attaining the NAAQS. As a result, our 16 See 80 FR 449 (January 6, 2015). South Coast to prepare a ‘‘Serious’’ area suspension of attainment-related SIP 17 See letter, Elizabeth Forsyth, Earthjustice, and submittal requirements is appropriate, Maya Golden-Krasner, Communities for a Better plan. Environment, to Wienke Tax, EPA Region IX, dated Response to Comment #1: We note and reclassification of the area to January 22, 2015. Earthjustice submitted the that Health Advocates do not challenge ‘‘Serious’’ for the 1997 PM2.5 standards comments on our proposed rule on behalf of our evaluation of South Coast PM data is not warranted. Communities for a Better Environment, Sierra Club, 2.5 Lastly, with respect to reclassification for 2011–2013, our proposed Center for Biological Diversity, WildEarth of the South Coast to Serious, we note Guardians, Medical Advocates for Healthy Air, and determination that the design values in that the EPA has reclassified the South Physicians for Social Responsibility—Los Angeles. the South Coast for that period are less Earthjustice’s letter included four attachments: (1) Coast from Moderate to Serious for the EPA’s technical support document and response to than the 1997 PM2.5 standards or our more stringent 2006 (24-hour) PM2.5 comments document for action on the 2007 South proposed suspension of any remaining NAAQS. See 81 FR 1514 (January 13, Coast Air Quality Management Plan; (2) comments SIP submittal requirements for the 1997 2016). As a result of that action, on the 2011 Air Monitoring Network Plan for the PM standards. Rather, Health South Coast Air Quality Management District; (3) a 2.5 California is required to submit, by Advocates assert that data for 2014 draft report prepared by Greg Gould, ‘‘Near August 14, 2017, additional SIP Roadway Emissions: Measures, Exposure, and made available since publication of our Monitoring;’’ and a report prepared by E.H. Pechan proposed rule precludes our final 18 & Associations, Inc., ‘‘Estimating Contributions of Under 40 CFR 50.7(a)(1), the 1997 PM2.5 On-Road Emissions to Near Highway PM2.5 determination of attainment because the NAAQS are defined in terms of ambient air Concentrations.’’ 2014 data purportedly shows that the measurements made by FRMs or FEMs.
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revisions to satisfy the statutory before the court has ruled on this 2015, and the 98th percentile 24-hour 19 3 requirements that apply to Serious PM2.5 issue. PM2.5 concentration was 36 m/m . At the nonattainment areas, including the Response to Comment #2: CAA Ontario Route 60 site, the corresponding requirements of subpart 4 of part D, title section 107(a) provides that each state concentrations were 14.5 m/m3 and 40 m/ I of the Act. The Serious area plan must shall have the primary responsibility for m3, respectively. In summary, the provide for attainment of the 2006 PM2.5 assuring air quality within the entire ambient concentrations were less than NAAQS in the South Coast as geographic area comprising such state the corresponding 1997 PM2.5 NAAQS expeditiously as practicable, but no later by submitting a SIP that will specify the and are consistent with continued than December 31, 2019, in accordance manner in which the NAAQS will be attainment of the 1997 PM2.5 NAAQS in with the requirements of part D of title achieved and maintained in such state. the South Coast. Also, as noted in our proposed rule, I of the Act. CAA section 107(a) does not specify how the EPA must determine whether the EPA’s evaluation of whether the Moreover, notwithstanding the an area within a state has attained the South Coast PM2.5 nonattainment area suspension of attainment-related SIP NAAQS. Such determinations are has attained the 1997 annual and 24- requirements related to the 1997 PM2.5 governed by the applicable sections of hour PM2.5 NAAQS is based in part on NAAQS arising from today’s action, 40 CFR parts 50, 53 and 58, and in the our review of the adequacy of the PM2.5 California must continue to develop proposed rule at page 73001, the EPA monitoring network in the such plans not just for the more identifies the specific regulations nonattainment area and the reliability of stringent 2006 (24-hour) PM2.5 NAAQS governing our proposed determination the data collected by the network. cited above, but also for the more of attainment for the South Coast for the During the relevant time period in which the data that we relied upon for stringent 2012 (annual average) PM2.5 1997 PM2.5 standards. NAAQS for which the South Coast has Health Advocates cite changes made the proposed determination of been classified as Moderate by the EPA to the Agency’s monitoring attainment were collected (i.e., 2011– 2013), the PM monitoring network in nonattainment effective April 15, 2015. regulations to require states to establish 2.5 the South Coast was not required to See 80 FR 2206 (January 15, 2015). The near-road PM2.5 monitors in certain include near-road PM monitors. new South Coast plan addressing urban areas as support for their 2.5 assertion that the EPA’s proposed Therefore, the lack of a near-road PM2.5 Moderate area requirements for the 2012 monitor during the 2011–2013 period PM2.5 NAAQS is due no later than determination of attainment for the South Coast in essence denies does not undermine our determination October 15, 2016. See CAA section of attainment of the standard based on 189(a)(2)(B). thousands of people who live near highways from the protections of the the data collected during those years. Comment #2: Health Advocates Clean Air Act. We agree that the EPA’s Moreover, as noted above, the near-road contend that the EPA cannot make a monitoring regulations have been ambient PM2.5 data that are now available are consistent with continued clean data determination for the 1997 revised to require near-road PM2.5 PM2.5 standards in the South Coast monitoring in Core-Based Statistical attainment of the 1997 PM2.5 NAAQS in because the data the EPA considered for Areas (CBSAs) having one million or the South Coast. Lastly, Health Advocates are correct its proposed determination exclude data greater persons. See 40 CFR part 58, that a lawsuit was filed in the Ninth from near-roadway monitors. In support appendix D, section 4.7.1(b), as added Circuit Court of Appeals, in which near- of their contention, Health Advocates by the EPA’s final action published at road PM concentrations were at issue. cite CAA section 107(a), which requires 78 FR 3086, at 3282 (January 15, 2013). 2.5 See Physicians for Social states to assure air quality within the The South Coast encompasses two Responsibility—Los Angeles v. EPA, entire geographic area and note that such areas, the Los Angeles-Long Beach- Ninth Circuit, No. 12–70079. However, Congress did not exempt areas near Anaheim, CA CBSA and the Riverside- the action that is challenged in that case highways, where evidence cited by the San Bernardino, CA CBSA. Given that is the EPA’s approval of the attainment commenters indicates much higher both CBSAs exceed 2.5 million people, demonstration for the 1997 PM2.5 levels of PM2.5 within 300 meters of the the first PM2.5 monitors specifically standards in the South Coast that relies highway. Thus, they assert that the located to measure the near-road on modeling results to predict future inclusion of near-roadway monitoring environment were required to be ambient concentrations. Today’s action data is necessary to protect the people operational as of January 1, 2015. In does not rely on future modeled who live, work and go to school within response to the revised monitoring concentrations but rather on past 300 meters of a highway in the South requirements, beginning January 1, monitored concentrations collected by a Coast and cite changes in the EPA’s 2015, the SCAQMD began monitoring monitoring network that, as explained monitoring regulations that require ambient PM2.5 concentrations at two above, is adequate and consistent with near-roadway monitoring in certain near-road sites: the Long Beach Route the EPA’s monitoring requirements for urban areas. 710 site (AQS ID 06–037–4008) is the relevant period. located near Route 710 in Long Beach, Health Advocates also cite a case In any event, on June 9, 2015, the and the Ontario Route 60 Near-Road site court issued a memorandum denying pending in the Ninth Circuit Court of (06–071–0027) is located near Route 60 the petition for review in the Physicians Appeals in which community and in Ontario. We now have one year’s for Social Responsibility case. As environmental groups are challenging worth of data from the two near-road relevant here, the court held that the the EPA’s approval of the attainment 20 PM2.5 monitors. At the Long Beach South Coast PM plan does not 2.5 demonstration for the 1997 PM2.5 Route 710 site, the annual average PM2.5 impermissibly ignore pollution in the standards in the South Coast, in part, on concentration was 12.9 m/m3 during near-highway areas because the the grounds that the attainment monitoring guidelines explicitly specify demonstration does not address the 19 The case cited is Physicians for Social that states generally need not monitor Responsibility—Los Angeles v. EPA, 9th Cir., No. near-highway environment. Health ‘‘microscale’’ or ‘‘middle scale’’ areas, Advocates contend that the EPA should 12–70079. 20 See AQS Design Value Report, dated May 5, which include ‘‘traffic corridors’’ and not make a clean data determination 2016. areas ‘‘along traffic corridors.’’ See
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Physicians for Social Responsibility— will remain suspended. If, after today’s apply to Indian Tribes, and thus this Los Angeles v. EPA, No. 12–70079, action, the EPA subsequently action will not impose substantial direct memorandum opinion at 3 (9th Cir., determines, after notice-and-comment costs on tribal governments or preempt June 9, 2015). Thus, the case presents no rulemaking in the Federal Register, that tribal law. reason to delay final action on the the area has violated the 1997 PM2.5 The Congressional Review Act, 5 determination of attainment for the NAAQS, the basis for the suspension of U.S.C. 801 et seq., as added by the Small South Coast for the 1997 PM2.5 the attainment planning requirements Business Regulatory Enforcement standards. for the area would no longer exist, and Fairness Act of 1996, generally provides IV. Final Action the area would thereafter have to that, before a rule may take effect, the address such requirements. agency promulgating the rule must For the reasons stated above, the EPA submit a rule report, which includes a V. Statutory and Executive Order is taking final action to determine that copy of the rule, to each House of the Reviews the South Coast nonattainment area in Congress and to the Comptroller General California has attained the 1997 annual This final action makes a of the United States. The EPA will and 24-hour PM2.5 NAAQS based on determination of attainment based on submit a report containing this action complete (or otherwise validated), air quality and suspends certain federal and other required information to the quality-assured and certified data in requirements, and thus, this action U.S. Senate, the U.S. House of AQS for 2011–2013. We also find that would not impose additional Representatives and the Comptroller the most recent quality-assured and requirements beyond those imposed by General of the United States prior to certified data in AQS show that this area state law. For this reason, the final publication of the rule in the Federal continues to attain the standards. action: Register. A major rule cannot take effect In conjunction with and based upon • Is not a ‘‘significant regulatory until 60 days after it is published in the our final determination that the South action’’ subject to review by the Office Federal Register. This action is not a Coast has attained and is currently of Management and Budget under ‘‘major rule’’ as defined by 5 U.S.C. attaining the standard, the EPA is taking Executive Order 12866 (58 FR 51735, 804(2). final action to determine that the October 4, 1993); Under section 307(b)(1) of the CAA, • obligation to submit any remaining Does not impose an information petitions for judicial review of this attainment-related SIP revisions arising collection burden under the provisions action must be filed in the United States from classification of the South Coast as of the Paperwork Reduction Act (44 Court of Appeals for the appropriate a Moderate nonattainment area under U.S.C. 3501 et seq.); circuit by September 23, 2016. Filing a subpart 4 of part D (of title I of the Act) • Is certified as not having a petition for reconsideration by the for the 1997 PM NAAQS is not 2.5 significant economic impact on a Administrator of this final rule does not applicable for so long as the area substantial number of small entities affect the finality of this action for the continues to attain the 1997 PM 2.5 under the Regulatory Flexibility Act (5 purposes of judicial review, nor does it NAAQS. These attainment-related U.S.C. 601 et seq.); extend the time within which a petition requirements include, but are not • Does not contain any unfunded for judicial review may be filed, and limited to, the part D, subpart 4 mandate or significantly or uniquely obligations to provide an attainment shall not postpone the effectiveness of affect small governments, as described such rule or action. This action may not demonstration pursuant to section in the Unfunded Mandates Reform Act 189(a)(1)(B), the RACM provisions of be challenged later in proceedings to of 1995 (Pub. L. 104–4); enforce its requirements. (See section section 189(a)(1)(C) and the RFP • Does not have Federalism 307(b)(2).) provisions of section 189(c). implications as specified in Executive Today’s final action does not Order 13132 (64 FR 43255, August 10, List of Subjects in 40 CFR Part 52 constitute a redesignation of the South 1999); Environmental protection, Air Coast nonattainment area to attainment • Is not an economically significant pollution control, Incorporation by for the 1997 annual and 24-hour PM 2.5 regulatory action based on health or reference, Nitrogen dioxide, Particulate NAAQS under CAA section 107(d)(3) safety risks subject to Executive Order matter, Reporting and recordkeeping because we have not yet approved a 13045 (62 FR 19885, April 23, 1997); requirements, Sulfur oxides, Volatile maintenance plan for the South Coast as • Is not a significant regulatory action organic compounds. meeting the requirements of section subject to Executive Order 13211 (66 FR 175A of the CAA or determined that the 28355, May 22, 2001); Dated: July 8, 2016. area has met the other CAA • Is not subject to requirements of Alexis Strauss, requirements for redesignation. The Section 12(d) of the National Acting Regional Administrator, Region IX. classification and designation status in Technology Transfer and Advancement Part 52, Chapter I, Title 40 of the Code 40 CFR part 81 remains Moderate Act of 1995 (15 U.S.C. 272 note) because of Federal Regulations is amended as nonattainment for this area until such application of those requirements would follows: time as the EPA determines that be inconsistent with the CAA; and • California has met the CAA Does not provide the EPA with the PART 52—APPROVAL AND requirements for redesignating the discretionary authority to address PROMULGATION OF South Coast nonattainment area to disproportionate human health or IMPLEMENTATION PLANS attainment. environmental effects with practical, If the South Coast nonattainment area appropriate and legally permissible ■ 1. The authority citation for Part 52 continues to monitor attainment of the methods under Executive Order 12898 continues to read as follows: 1997 PM2.5 NAAQS, the requirements (59 FR 7629, February 16, 1994). Authority: 42 U.S.C. 7401 et seq. for the area to submit an attainment In addition, this final action does not demonstration and associated RACM, an have tribal implications as specified by Subpart F—California RFP plan, contingency measures and Executive Order 13175 (65 FR 67249, any other planning requirements related November 9, 2000), because the SIP ■ 2. Section 52.247 is amended by to attainment of the 1997 PM2.5 NAAQS obligations discussed herein do not adding paragraph (g) to read as follows:
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§ 52.247 Control strategy and regulations: 24, 2016. If the EPA receives significant G. Executive Order 13045: Protection of Fine Particle Matter. adverse comment, we will publish a Children From Environmental Health * * * * * timely withdrawal in the Federal Risks and Safety Risks (g) Determination of Attainment: H. Executive Order 13211: Actions Register informing the public that the Concerning Regulations That Effective August 24, 2016, the EPA has rule will not take effect. Significantly Affect Energy Supply, determined that, based on 2011 to 2013 ADDRESSES: Submit your comments, Distribution, or Use ambient air quality data, the South identified by Docket ID No. EPA–HQ– I. National Technology Transfer and Coast PM2.5 nonattainment area has OAR–2011–0817, to the Federal Advancement Act (NTTAA) attained the 1997 annual and 24-hour eRulemaking Portal: http:// J. Executive Order 12898: Federal Actions To Address Environmental Justice in PM2.5 NAAQS. This determination www.regulations.gov. Follow the online suspends the requirements for this area Minority Populations and Low-Income instructions for submitting comments. Populations to submit an attainment demonstration, Once submitted, comments cannot be K. Congressional Review Act (CRA) associated reasonably available control edited or withdrawn. The EPA may measures, a reasonable further progress publish any comment received to its I. General Information plan, contingency measures and other public docket. Do not submit A. Why is the EPA using a direct final planning SIPs related to attainment for electronically any information you rule? as long as this area continues to attain consider to be Confidential Business the 1997 annual and 24-hour PM The EPA is publishing this direct final 2.5 Information (CBI) or other information rule without a prior proposed rule NAAQS. If the EPA determines, after whose disclosure is restricted by statute. notice-and-comment rulemaking, that because we view this as a Multimedia submissions (audio, video, noncontroversial action and do not this area no longer meets the 1997 PM2.5 etc.) must be accompanied by a written NAAQS, the corresponding anticipate significant adverse comment. comment. The written comment is However, in the ‘‘Proposed Rules’’ determination of attainment for the area considered the official comment and shall be withdrawn. section of this Federal Register, we are should include discussion of all points publishing a separate document that [FR Doc. 2016–17410 Filed 7–22–16; 8:45 am] you wish to make. The EPA will will serve as the proposed rule to amend BILLING CODE 6560–50–P generally not consider comments or the National Emission Standards for comment contents located outside of the Hazardous Air Pollutants for the primary submission (i.e., on the Web, Portland Cement Manufacturing ENVIRONMENTAL PROTECTION Cloud, or other file sharing system). For Industry, if EPA receives significant AGENCY additional submission methods, the full adverse comments on this direct final EPA public comment policy, 40 CFR Part 63 rule. We will not institute a second information about CBI or multimedia comment period on this action. Any [EPA–HQ–OAR–2011–0817; FRL–9949–46– submissions, and general guidance on parties interested in commenting must OAR] making effective comments, please visit do so at this time. For further RIN 2060–AS98 http://www2.epa.gov/dockets/ information about commenting on this commenting-epa-dockets. rule, see the ADDRESSES section of this National Emission Standards for FOR FURTHER INFORMATION CONTACT: Ms. document. Hazardous Air Pollutants for the Sharon Nizich, Sector Policies and If the EPA receives significant adverse Portland Cement Manufacturing Programs Division (D243–02), Office of comment on all or a distinct portion of Industry Air Quality Planning and Standards, this direct final rule, we will publish a U.S. Environmental Protection Agency, timely withdrawal in the Federal AGENCY: Environmental Protection Research Triangle Park, North Carolina, Register informing the public that some Agency (EPA). 27711; telephone number: (919) 541– or all of this direct final rule will not ACTION: Direct final rule. 2825; fax number: (919) 541–5450; and take effect. We would address all public email address: [email protected]. comments in any subsequent final rule SUMMARY: The Environmental Protection based on the proposed rule. Agency (EPA) is taking direct final SUPPLEMENTARY INFORMATION: action to amend the National Emission Organization of This Document. The B. Does this direct final rule apply to Standards for Hazardous Air Pollutants information in this preamble is me? for the Portland Cement Manufacturing organized as follows: Categories and entities potentially Industry. This direct final rule provides, I. General Information regulated by this direct final rule for a period of 1 year, an additional A. Why is the EPA using a direct final rule? include: compliance alternative for sources that B. Does this direct final rule apply to me? would otherwise be required to use an C. What should I consider as I prepare my Category NAICS Code 1 HCl CEMS to demonstrate compliance comments for the EPA? with the HCl emissions limit. This II. What are the amendments made by this Portland cement manufac- direct final rule? turing facilities ...... 327310 compliance alternative is needed due to III. Statutory and Executive Order Reviews 1 the current unavailability of a A. Executive Order 12866: Regulatory North American Industry Classification calibration gas used for quality Planning and Review and Executive System. assurance purposes. This direct final Order 13563: Improving Regulation and This table is not intended to be rule also restores regulatory text Regulatory Review exhaustive, but rather provides a guide requiring the reporting of clinker B. Paperwork Reduction Act (PRA) for readers regarding entities likely to be production and kiln feed rates that was C. Regulatory Flexibility Act (RFA) regulated by this direct final rule. To deleted inadvertently. D. Unfunded Mandates Reform Act determine whether your facility is (UMRA) DATES: This rule is effective on E. Executive Order 13132: Federalism affected, you should examine the September 8, 2016 without further F. Executive Order 13175: Consultation applicability criteria in 40 CFR 63.1340. notice, unless the EPA receives and Coordination With Indian Tribal If you have questions regarding the significant adverse comment by August Governments applicability of any aspect of this action
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to a particular entity, consult either the Method 321 performance test (note Manufacturer Intermediate Standards air permitting authority for the entity or Method 321 is the HCl stack testing (GMIS). The GMIS cylinders are then your EPA Regional representative as performance method required by this used to produce NIST-traceable gas listed in 40 CFR 63.13. rule), the owner or operator cylinders that are sold commercially.1 simultaneously measures a control The initial approach used by NIST to C. What should I consider as I prepare device parameter and establishes a site- certify the RGM cylinders was not my comments for the EPA? specific parameter limit that will be viable in the long term as the Do not submit information containing continuously monitored to determine instrumentation used by NIST largely CBI to the EPA through http:// compliance. If the kiln is controlled depleted the HCl RGM gas volume, www.regulations.gov or email. Clearly using a wet scrubber or tray tower, the leaving little gas in the cylinder for the mark the part or all of the information owner or operator would monitor the vendors to use in preparing GMIS that you claim to be CBI. For CBI pressure drop across the scrubber and/ materials. Because of this concern, NIST information on a disk or CD–ROM that or liquid flow rate and pH during the initiated development of an improved you mail to the EPA, mark the outside HCl performance test. If the kiln is RGM certification procedure. The of the disk or CD–ROM as CBI and then controlled using a dry scrubber, the development of both the initial and identify electronically within the disk or sorbent injection rate would be more recently improved approach has CD–ROM the specific information that monitored during the performance test. been hampered by the challenges is claimed as CBI. In addition to one Under the second option, the owner or presented in handling HCl gas. HCl gas complete version of the comments that operator may establish sulfur dioxide is extremely reactive and difficult to includes information claimed as CBI, a (SO2) as the operating parameter by handle in both gas cylinders and copy of the comments that does not measuring SO2 emissions using a CEMS analytically. As such, it has taken contain the information claimed as CBI simultaneously with the Method 321 considerable time for NIST to optimize must be submitted for inclusion in the test and establishing the site-specific the new analytical equipment and public docket. Information so marked SO2 limit that will be continuously approach to achieve the necessary will not be disclosed except in monitored to determine compliance uncertainty requirements (e.g., <1 accordance with procedures set forth in with the HCl limit. percent uncertainty). 40 CFR part 2. Send or deliver The current rule requires that if a In addition, the commercial information identified as CBI only to the source chooses to monitor HCl establishment of NIST-traceable gases is following address: OAQPS Document emissions using a CEMS, they must do dependent on collaboration between Control Officer (C404–02), U.S. so in accordance with PS–15, PS–18, or NIST and the specialty gas vendors. Environmental Protection Agency, any other PS for HCl CEMS in appendix There are a limited number of vendors Research Triangle Park, North Carolina B to part 60 of this chapter. (See 40 CFR providing the stable, accurate, low and 27711, Attention Docket ID No. EPA– part 60 appendix B.) Quality assurance high concentration cylinder gases to HQ–OAR–2011–0817. procedures for HCl CEMS require that NIST to certify as RGMs. NIST is now they be capable of reading HCl receiving a regular supply of candidate II. What are the amendments made by concentrations that span a range of RGM cylinders from these vendors and this direct final rule? possible emission levels below as well is beginning work on higher In response to a concern raised by a as above expected HCl emission concentration HCl gas standards needed stakeholder regarding the availability of concentrations. These quality assurance to support integrated path HCl monitors calibration gases for HCl continuous procedures require the use of National (IP–CEMS). Once the RGMs are monitoring compliance, this direct final Institute of Standards and Technology available, the specialty gas vendors rule amends 40 CFR 63.1349(b)(6) of the (NIST)-traceable calibration gases for must complete a series of procedures to performance testing requirements for HCl. establish the certainty of their products HCl by adding an alternative method for Following our decision to create PS– which adds to the time to achieve wide performance testing. Under the current 18 and Procedure 6 for HCl continuous commercial availability. rule, the owner or operator of a kiln monitoring in 2012, the EPA worked As a result, the EPA is providing, for subject to the emission limits for HCl in with NIST and commercial gas vendors a period of 1 year, an additional 40 CFR 63.1343 may demonstrate on development of NIST-traceable HCl compliance alternative for sources that compliance by one of the following gas standards to support the PS–18 and would otherwise be required to use an methods: Portland Cement Maximum Achievable HCl CEMS. In this alternative, the HCl • An owner or operator of a kiln may Control Technology (MACT) CEMS is still required to be installed demonstrate compliance by operating a rulemaking. While some of the low HCl and operated, but actual compliance continuous emissions monitoring concentration (<10 parts per million, or with the HCl emissions limit is system (CEMS) meeting the ppm) NIST-traceable gases have been determined by a three run stack test. requirements of performance available on a limited basis since 2013, The HCl CEMS will still provide a specification 15 (PS–15), PS–18, or any the full range of HCl concentrations continuous readout of HCl emissions, other PS for HCl CEMS in appendix B required to support all HCl emissions but because the CEMS will not be to part 60, with compliance based on a monitoring technologies (including calibrated with the required NIST- 30-kiln operating day rolling average. integrated path that requires traceable calibration gases, the HCl • If the kiln is controlled using a wet concentrations 100 times higher) are not measurement is not considered to be scrubber, tray tower, or dry scrubber, widely available at this time. sufficiently accurate on an absolute the owner or operator, as an alternative The approach used by NIST in 2013 basis for compliance, but would be to using a CEMS, may demonstrate was to certify the Research Gas Material sufficient to indicate any relative change compliance with the HCl limit using (RGM) cylinders as primary gas in HCl emissions occurring subsequent one of two options, described below. standards. These cylinders contain HCl Under both options, a performance gas and are provided to NIST by 1 EPA Traceability Protocol for Assay and test must be conducted by the owner or vendors for NIST certification, and Certification of Gaseous Calibration Standards, U.S. Environmental Protection Agency Office of operator using Method 321. Under the subsequently used by the vendors as Research and Development, EPA/600/R–12/531, first option, while conducting the transfer standards to prepare the Gas May 2012.
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to the compliance test. Therefore, the As is the case for the PM CPMS A. Executive Order 12866: Regulatory HCl CEMS under this alternative would requirements (see 40 CFR Planning and Review and Executive function as a continuous parameter 63.1349(b)(1)(i)), this alternative Order 13563: Improving Regulation and monitor system (CPMS) as in the case of includes a scaling factor of 75 percent Regulatory Review the particulate matter (PM) CPMS of the emission standard as a benchmark This action is not a significant requirement (see 78 FR 10014–10015, (2.25 parts per million volume, dry basis regulatory action and was, therefore, not 10019–10020, February 12, 2013). Based @ 7-percent oxygen). Sources that submitted to the Office of Management on conversations with gas vendors and choose this option will conduct a and Budget (OMB) for review. NIST, we anticipate that NIST-traceable Method 321 test to determine B. Paperwork Reduction Act (PRA) calibration gases for HCl will be compliance with the HCl emissions available in sufficient quantities within standard and during this testing will This action does not impose any new one year of this notice (see J. Ryan, also monitor their HCl CPMS output in information collection burden under the memo to S. Johnson, Docket ID No. indicated ppm to determine where their PRA. OMB has previously approved the EPA–HQ–OAR–2011–0817, Status of information collection activities HCl CPMS output would intersect 75 NIST-Traceable Hydrogen Chloride contained in the existing regulation (40 percent of their allowed HCl emissions, (HCl) Calibration Gases for Use With CFR part 63, subpart RRR) and has HCl Continuous Emissions Monitoring and set their operating level at that ppm assigned OMB control number 2060– Systems (CEMS) Under 40 CFR part 63, output. This scaling procedure 0416. This action does not change the subpart LLL, June 22, 2016). Thus, this alleviates re-testing concerns for sources information collection requirements. alternative will expire on July 25, 2017 that operate well below the emission C. Regulatory Flexibility Act (RFA) and owner/operators must have in place limit and provides greater operational one of the original HCl compliance flexibility while assuring continuous I certify that this action will not have demonstration alternatives (we compliance with the HCl emission a significant economic impact on a anticipate HCl CEMS operated standard. For sources whose Method substantial number of small entities monitoring equipment according to 40 321 compliance tests place them at or under the RFA. This action will not CFR 63.1350(l)) by this date. above 75 percent of the emission impose any requirements on small Under this new, temporary standard, their operating limit is entities. This action does not create any alternative, the owner or operator would determined by the average of three new requirements or burdens and no demonstrate initial compliance by Method 321 test runs (for sources with costs are associated with this direct final conducting a performance test using no inline raw mill) or the time weighted action. Method 321 and would monitor average of six Method 321 test runs (for D. Unfunded Mandates Reform Act compliance with an operating parameter kilns with inline raw mills). We believe (UMRA) limit through use of an HCl CPMS. For that by adopting a scaling factor as well This action does not contain an the HCl CPMS, the owner operator as the use of 30 days of averaged HCl unfunded mandate as described in would use the average HCl CPMS CPMS measurements, the parametric UMRA, 2 U.S.C. 1531–1538, and does indicated output, typically displayed as limit in no way imposes a stringency not significantly or uniquely affect small parts per million volume, wet basis HCl level higher than the level of the HCl governments. The action imposes no recorded at in-stack oxygen emissions standard and will avoid enforceable duty on any state, local, or concentration during the HCl triggering unnecessary retests for many tribal governments or the private sector. performance test to establish the facilities, especially for the lower- E. Executive Order 13132: Federalism operating limit. To determine emitting sources. continuous compliance with the This action does not have federalism In addition to adding the interim operating limit, the owner or operator implications. It will not have substantial testing and monitoring provisions for would record the indicated HCl CPMS direct effects on the states, on the output data for all periods when the HCl, we are restoring a recordkeeping relationship between the national process is operating and use all the HCl regulatory provision that was deleted government and the states, or on the CPMS data, except data obtained during inadvertently during one of the recent distribution of power and times of monitor malfunctions. Thus, rule revisions. The provision in responsibilities among the various continuous compliance with the question is the former 40 CFR levels of government. operating limit would be demonstrated 63.1355(e). This provision relates to the by using all valid hourly average data recordkeeping requirements for clinker F. Executive Order 13175: Consultation collected by the HCl CPMS for all production and kiln feed rates. This and Coordination With Indian Tribal operating hours to calculate the requirement was added in the 2010 final Governments arithmetic average operating parameter amendments and was not removed or This action does not have tribal in units of the operating limit (indicated revised in subsequent amendments to implications, as specified in Executive ppm) on a 30-kiln operating day rolling the rule. This rulemaking restores this Order 13175. It will neither impose average basis, updated at the end of provision in the regulatory text to substantial direct compliance costs on each new kiln operating day. An ensure that the regulated community federally recognized tribal governments, exceedance of the kiln 30-day operating has a clear understanding of the nor preempt tribal law. The EPA is limit would trigger evaluation of the applicable compliance requirements. aware of one tribally owned Portland control system operation and resetting cement facility currently subject to 40 the operating limit based on a new III. Statutory and Executive Order CFR part 63, subpart LLL that will be correlation with performance testing. Reviews subject to this direct final rule. For kilns with inline raw mills, However, the provisions of this direct performance testing and monitoring HCl Additional information about these final rule are not expected to impose to establish the site specific operating statutes and Executive Orders can be new or substantial direct compliance limit must be conducted during both found at http://www2.epa.gov/laws- costs on Tribal governments since the raw mill on and raw mill off conditions. regulations/laws-and-executive-orders. provisions in this direct final rule are
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adding an alternative to the HCl Dated: July 14, 2016. compliance test as your operating limit. monitoring provisions, adding an option Gina McCarthy, You must use the HCl CPMS indicated which provides operational flexibility. Administrator. signal data to demonstrate continuous Thus, Executive Order 13175 does not For the reasons stated in the compliance with your operating limit. apply to this action. preamble, the Environmental Protection (1) Your HCl CPMS must provide a ppm HCl concentration output and the G. Executive Order 13045: Protection of Agency is amending title 40, chapter I, part 63 of the Code of Federal establishment of its relationship to Children From Environmental Health Regulations (CFR) as follows: manual reference method measurements Risks and Safety Risks must be determined in units of indicated ppm. The instrument signal The EPA interprets Executive Order PART 63—NATIONAL EMISSION may be in ppmvw or ppmvd and the 13045 as applying to those regulatory STANDARDS FOR HAZARDOUS AIR signal may be a measurement of HCl at actions that concern environmental POLLUTANTS FOR SOURCE CATEGORIES in-stack concentration or a corrected health or safety risks that the EPA has oxygen concentration. Once the reason to believe may ■ 1. The authority citation for part 63 relationship between the indicated disproportionately affect children, per continues to read as follows: output of the HCl CPMS and the the definition of ‘‘covered regulatory Authority: 42 U.S.C. 7401, et seq. reference method test results is action’’ in section 2–202 of the established, the HCl CPMS instrument Executive Order. This action is not Subpart LLL—National Emission measurement basis (ppmvw or ppmvd, subject to Executive Order 13045 Standards for Hazardous Air Pollutants or oxygen correction basis) must not be because it does not concern an for the Portland Cement Manufacturing altered. Likewise, any setting that environmental health risk or safety risk. Industry impacts the HCl CPMS indicated HCl response must remain fixed after the H. Executive Order 13211: Actions ■ Concerning Regulations That 2. Section 63.1349 is amended by site-specific operating limit is set. adding paragraph (b)(6)(v) to read as Significantly Affect Energy Supply, (2) Your HCl CPMS operating range follows: must be capable of reading HCl Distribution, or Use concentrations from zero to a level § 63.1349 Performance testing equivalent to 125 percent of the highest This action is not subject to Executive requirements. Order 13211 because it is not a expected value during mill off * * * * * significant regulatory action under operation. If your HCl CPMS is an auto- (b) * * * Executive Order 12866. ranging instrument capable of multiple (6) * * * scales, the primary range of the I. National Technology Transfer and (v) As an alternative to paragraph instrument must be capable of reading Advancement Act (NTTAA) (b)(6)(ii) of this section, the owner or an indicated HCl concentration from operator may demonstrate initial zero to 10 ppm. This rulemaking does not involve compliance by conducting a (3) During the initial performance test technical standards. performance test using Method 321 of of a kiln with an inline raw mill, or any appendix A to this part. You must also J. Executive Order 12898: Federal such subsequent performance test that monitor continuous performance Actions To Address Environmental demonstrates compliance with the HCl through use of an HCl CPMS according Justice in Minority Populations and limit, record and average the indicated to paragraphs (b)(6)(v)(A) through (H) of Low-Income Populations ppm HCl output values from the HCl this section. For kilns with inline raw CPMS for each of the six periods The EPA believes that this action does mills, compliance testing and corresponding to the compliance test not have disproportionately high and monitoring HCl to establish the site runs (e.g., average each of your HCl adverse human health or environmental specific operating limit must be CPMS output values for six effects on minority populations, low- conducted during both raw mill on and corresponding Method 321 test runs). income populations, or indigenous raw mill off conditions. With the average values of the six test peoples, as specified in Executive Order (A) For your HCl CPMS, you must runs, calculate the average of the three 12898 (59 FR 7629, February 16, 1994). establish a 30 kiln operating day site- mill on test runs and the average of the This action does not affect the level of specific operating limit. If your HCl three mill off test runs. Calculate the protection provided to human health or performance test demonstrates your HCl time weighted result using the average the environment. emission levels to be less than 75 of the three mill on tests and the average percent of your emission limit (2.25 of the three mill off tests and the K. Congressional Review Act (CRA) ppmvd @7% O2), you must use the time previous annual ratio of mill on/mill off weighted average HCl CPMS indicated operations. Kilns without an inline raw This action is subject to the CRA, and value recorded during the HCl mill will conduct three compliance tests the EPA will submit a rule report to compliance test (typically measured as and calculate the average monitor each House of the Congress and to the ppmvw HCl at stack O2 concentration, output values corresponding to these Comptroller General of the United but a dry, oxygen corrected value would three test runs and not use time States. This action is not a ‘‘major rule’’ also suffice), your HCl instrument zero weighted values to determine their site as defined by 5 U.S.C. 804(2). output value, and the time weighted specific operating limit. List of Subjects in 40 CFR Part 63 average HCl result of your compliance (B) Determine your operating limit as test to establish your operating limit. If specified in paragraphs (b)(6)(i) or (iii) Environmental protection, your HCl compliance test demonstrates of this section. If your HCl performance Administrative practice and procedures, your HCl emission levels to be at or test demonstrates your HCl emission Air pollution control, Hazardous above 75 percent of your emission limit levels to be below 75 percent of your substances, Intergovernmental relations, (2.25 ppmvd @7% O2), you must use the emission limit, kilns with inline raw Reporting and recordkeeping time weighted average HCl CPMS mills will use the time weighted average requirements. indicated value recorded during the HCl indicated HCl ppm concentration CPMS
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value recorded during the HCl (C) If the average of your three test with the procedures in paragraphs compliance test, the zero value output Method 321 compliance test runs (for (b)(6)(v)(C)(1) through (5) of this section. from your HCl CPMS, and the time kilns without an inline raw mill) or the (1) Determine your HCl CPMS weighted average HCl result of your time weighted average of your six instrument zero output with one of the compliance test to establish your Method 321 compliance test runs (for an following procedures: operating limit. Kilns without inline kiln with an inline raw mill) is below raw mills will not use a time weighted 75 percent of your HCl emission limit, (i) Zero point data for in situ average value to establish their you must calculate an operating limit by instruments should be obtained by operating limit. If your time weighted establishing a relationship of the removing the instrument from the stack HCl compliance test demonstrates your average HCl CPMS indicated ppm to the and monitoring ambient air on a test HCl emission levels to be at or above 75 Method 321 test average HCl bench. percent of your emission limit, you will concentration using the HCl CPMS (ii) If neither of the steps in use the time weighted HCl CPMS instrument zero, the average HCl CPMS paragraphs (b)(6)(v)(C)(1)(i) through (ii) indicated ppm value recorded during indicated values corresponding to the of this section are possible, you must the HCl compliance test to establish three (for kilns without inline raw mills) use a zero output value provided by the your operating limit. Kilns without or time weighted HCl CPMS indicated manufacturer. inline raw mills will not use time values corresponding to the six (for weighted compliance test results to kilns with inline raw mills) compliance (2) If your facility does not have an make this determination. You must test runs, and the average HCl inline raw mill you will determine your verify an existing operating limit or concentration (for kilns without raw HCl CPMS indicated average in HCl establish a new operating limit for each mills) or average time weighted HCl ppm, and the average of your kiln, after each repeated performance concentration (for kilns with inline raw corresponding three HCl compliance test. mills) from the Method 321 compliance test runs, using equation 11a.
Where: Yi = The HCl concentration value for the and the average of your corresponding three (or six) runs constituting the Xi = The HCl CPMS data points for the three HCl compliance test runs, using (or six) runs constituting the performance test; and equation 11b. If you have an inline raw n = The number of data points. performance test; mill, use this same equation to calculate (3) You will determine your HCl a second three-test average for your mill CPMS indicated average in HCl ppm, off CPMS and compliance test data.
Where: Yi = The HCl concentration value for the CPMS ppm value, and your HCl three runs constituting the mill on OR Xi = The HCl CPMS data points for the three compliance test average, determine a runs constituting the mill on OR mill off mill off performance test; and relationship of performance test HCl (as n = The number of data points. performance test; ppmvd @7% O2) concentration per HCl (4) With your instrument zero CPMS indicated ppm with Equation expressed in ppm, your average HCl 11c.
Where: X1 = The average indicated ppm output from HC1 CPMS indicated value from R = The relative performance test your HCl CPMS; and Equation 11c in Equation 11d, below. concentration per indicated ppm for z = The ppm of your instrument zero This sets your operating limit at the HC1 your HCl CPMS; determined from paragraph (b)(6)(v)(C)(1) of this section. CPMS output value corresponding to 75 Y1 = The average HCl concentration as percent of your emission limit. ppmvd @7% O2 during the performance (5) Determine your source specific 30 test; kiln operating day operating limit using
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Where: R = The relative performance test your operating limit by averaging the Ol = The operating limit for your HCl CPMS concentration per indicated ppm for HCl CPMS output corresponding to your on a 30 kiln operating day average, as your HCl CPMS, from Equation 11c. HCl performance test runs that indicated ppm; (D) If the average of your HCl demonstrate compliance with the L = 3 ppmvd @7% O2; z = Your instrument zero, determined from compliance test runs is at or above 75 emission limit using Equation 11e. paragraph (b)(6)(v)(C)(1) of this section ; percent of your HCl emission limit (2.25 and ppmvd@7% O2) you must determine
Where: indicated output data for all periods operating hours to calculate the Oh = Your site specific HCl CPMS operating when the process is operating and use arithmetic average operating parameter limit, in indicated ppm. all the HCl CPMS data for calculations in units of the operating limit (ppmvw) Xi = The HCl CPMS data points for all runs when the source is not out of control. on a 30 kiln operating day rolling i. n = The number of data points. You must demonstrate continuous average basis, updated at the end of compliance with the operating limit by each new kiln operating day. Use (E) To determine continuous using all quality-assured hourly average Equation 11f to determine the 30 kiln compliance with the operating limit, data collected by the HCl CPMS for all operating day average. you must record the HCl CPMS
Where: (F) If you exceed the 30 kiln operating while the raw mill is on and while the 30 kiln operating day parameter average = day operating limit, you must evaluate raw mill is off. Using the fraction of The average indicated value for the the control system operation and re-set time the raw mill is on calculate your CPMS parameter over the previous 30 the operating limit. HCl CPMS limit as a weighted average days of kiln operation; (G) The owner or operator of a kiln of the HCl CPMS indicated values Hpvi = The hourly parameter value for hour i; and with an inline raw mill and subject to measured during raw mill on and raw n = The number of valid hourly parameter limitations on HCl emissions must mill off compliance testing using values collected over 30 kiln operating demonstrate initial compliance by Equation 11g. days. conducting separate performance tests
Where: ■ 3. Section 63.1350 is amended by (i) Within 48 hours of the exceedance, R = HCl CPMS operating limit; adding paragraph (l)(4) to read as visually inspect the APCD; b = Average indicated HCl CPMS value follows: (ii) If inspection of the APCD during mill on operations, ppm; identifies the cause of the exceedance, t = Fraction of operating time with mill on; § 63.1350 Monitoring requirements. take corrective action as soon as a = Average indicated HCl CPMS value * * * * * during mill off operations ppm; and possible and return the HCl CPMS (1¥t) = Fraction of operating time with mill (l) * * * measurement to within the established value; and off. (4) If you monitor continuous (iii) Within 30 days of the exceedance (H) Paragraph (b)(6)(v) of this section performance through the use of an HCl CPMS according to paragraphs or at the time of the annual compliance expires on July 25, 2017 at which test, whichever comes first, conduct an (b)(6)(v)(A) through (H) of § 63.1349, for time the owner or operator must HCl emissions compliance test to any exceedance of the 30 kiln operating demonstrate compliance with determine compliance with the HCl paragraphs (b)(6)(i), (ii), or (iii). day HCl CPMS average value from the emissions limit and to verify or * * * * * established operating limit, you must: reestablish the HCl CPMS operating
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limit within 45 days. You are not 2016. The full text of this document is Regulatory Flexibility Certification required to conduct additional testing available for inspection and copying 2. The Regulatory Flexibility Act for any exceedances that occur between during normal business hours in the (RFA) 1 requires that agencies prepare a the time of the original exceedance and FCC Reference Center (Room CY–A257), regulatory flexibility analysis for notice- the HCl emissions compliance test 445 12th Street SW., Washington, DC and-comment rulemaking proceedings, required under this paragraph. 20554. The complete text of this unless the agency certifies that ‘‘the rule (iv) HCl CPMS exceedances leading to document also may be purchased from will not have a significant economic more than four required performance the Commission’s copy contractor, Best impact on a substantial number of small tests in a 12-month process operating Copy and Printing, Inc., 445 12th Street entities.’’ 2 Modification of section 5.303 period (rolling monthly) constitute a SW., Room, CY–B402, Washington, DC of the Commission’s Rules establishes presumptive violation of this subpart. 20554. The full text may also be parity between all qualified medical * * * * * downloaded at: https://apps.fcc.gov/ device manufacturers as to permissible ■ 4. Section 63.1355 is amended by edocs_public/Query.do?numberFld=16- frequencies of operation for conducting adding paragraph (e) to read as follows: 86&numberFld2=&docket=&dateFld= basic research and clinical trials with &docTitleDesc. RF-based medical devices. The § 63.1355 Recordkeeping requirements. People with Disabilities: To request Commission previously determined that * * * * * materials in accessible formats for ‘‘[t]he entities affected by the proposed (e) You must keep records of the daily people with disabilities (braille, large rule change are equipment clinker production rates and kiln feed manufacturers seeking to test medical rates. print, electronic files, audio format), send an email to [email protected] or call equipment designed to operate in the * * * * * the Consumer & Governmental Affairs restricted frequency bands listed in [FR Doc. 2016–17293 Filed 7–22–16; 8:45 am] Bureau at 202–418–0530 (voice), 202– section 15.205(a) of the rules, and such BILLING CODE 6560–50–P 418–0432 (tty). manufacturers are limited in number,’’ and certified that the proposed rules This document does not contain new would not have a significant economic FEDERAL COMMUNICATIONS or modified information collection impact on a substantial number of small COMMISSION requirements subject to the Paperwork entities. The Commission received no Reduction Act of 1995 (PRA), Public comments that addressed this 47 CFR Part 5 Law 104–13. determination or that claimed that the [ET Docket Nos. 10–236 and 06–155; FCC Synopsis proposal requires additional RFA 16–86] analysis. The Commission therefore 1. In 2013, the Commission certifies that the rule revisions set forth Radio Experimentation and Market established in the Report and Order in herein will not have a significant Trials—Streamlining Rules this proceeding, 78 FR 25137, April 29, economic impact on a substantial number of small entities. AGENCY: Federal Communications 2013, three new kinds of experimental Commission. licenses—including program licenses— Congressional Review Act designed to benefit the development of ACTION: Final rule. new technologies and expedite their 3. The Commission will send a copy of this Second Report and Order in a SUMMARY: In this document, the introduction to the marketplace. In this Commission modifies its rules to permit Second Report and Order, the report to Congress and the Government program experimental radio licensees Commission adopts the proposal set Accountability Office pursuant to the (program licensees) to experiment with forth in the Further NPRM, 80 FR 52437, Congressional Review Act, see 5 U.S.C. radio frequency (RF)-based medical August 31, 2015, by modifying section 801(a)(1)(A). devices on certain restricted 5.303 of its rules for program licenses to Ordering Clauses frequencies, if the medical device being permit experimentation in the restricted 4. Accordingly, IT IS ORDERED, that, tested is designed to comply with frequency bands for medical devices pursuant to sections 301 and 303 of the applicable Commission service rules. that comply with the service rules in Communications Act of 1934, as Adoption of this proposal facilitates Part 18 (Industrial, Scientific, and amended, 47 U.S.C. 301 and 303, and access to spectrum that can be used Medical Equipment), Part 95 Subpart H §§ 1.1 and 1.425 of the Commission’s under an experimental program license (Wireless Medical Telemetry Service), rules, 47 CFR 1.1, 1.425, this Second to improve the utility of this type of or Part 95 Subpart I (Medical Device Report and Order IS ADOPTED. licensing scheme for those entities Radiocommunication Service). This rule 5. IT IS FURTHER ORDERED that part experimenting with RF-based medical change will establish parity between all 5 of the Commission’s rules, 47 CFR devices, and thereby help to advance qualified medical device manufacturers part 5, IS AMENDED, as set forth in the innovation in this area. This action will and developers—whether they are Rule Changes. These revisions will be result in no harm to any qualified health care institutions or medical effective August 24, 2016. license applicant or licensee. device manufacturers—as to permissible 6. IT IS FURTHER ORDERED that, if DATES: Effective August 24, 2016. frequencies of operation for conducting no applications for review are timely FOR FURTHER INFORMATION CONTACT: basic research and clinical trials with filed, this proceeding SHALL BE Rodney Small, Office of Engineering RF-based medical devices. Accordingly, TERMINATED and the docket CLOSED. and Technology, 202–418–2452, because the Commission finds that the [email protected]. proposal will serve the public interest 1 See 5 U.S.C. 604. The RFA, see 5 U.S.C. 601 et SUPPLEMENTARY INFORMATION: This is a by promoting medical innovation with seq., has been amended by the Contract with summary of the Commission’s Second no detriment to the public, it adopts that America Advancement Act of 1996, Public Law proposal. Revised section 5.303 of the 104–121, 110 Stat. 847 (1996) (CWAAA). Title II of Report and Order, ET Docket No. 10– the CWAAA is the Small Business Regulatory 236 and 06–155, FCC 16–86, adopted rules is set forth at the end of this Enforcement Fairness Act of 1996 (SBREFA). June 29, 2016, and released June 30, summary. 2 5 U.S.C. 605(b).
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List of Subjects in 47 CFR Part 5 PART 5—EXPERIMENTAL RADIO exclusively allocated to the passive SERVICE services (including the radio astronomy Radio, Reporting and recordkeeping service). In addition, licensees may not requirements. ■ 1. The authority citation for part 5 use any frequency or frequency band Federal Communications Commission. continues to read as follows: below 38.6 GHz that is listed in Marlene H. Dortch, Authority: Secs. 4, 302, 303, 307, 336 48 § 15.205(a) of this chapter. Stat. 1066, 1082, as amended; 47 U.S.C. 154, Secretary. (b) Exception: Licensees may use 302, 303, 307, 336. Interpret or apply sec. frequencies listed in § 15.205(a) of this Rule Changes 301, 48 Stat. 1081, as amended; 47 U.S.C. 301. chapter for testing medical devices (as defined in § 5.402(b) of this chapter), if For the reasons set forth in the ■ 2. Section 5.303 is revised to read as the device is designed to comply with preamble the Federal Communications follows: all applicable service rules in part 18; Commission amends 47 CFR part 5 as part 95, subpart H; or part 95, subpart follows: § 5.303 Frequencies. (a) Licensees may operate in any I of this chapter. frequency band, including those above [FR Doc. 2016–17319 Filed 7–22–16; 8:45 am] 38.6 GHz, except for frequency bands BILLING CODE 6712–01–P
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Proposed Rules Federal Register Vol. 81, No. 142
Monday, July 25, 2016
This section of the FEDERAL REGISTER Environmental Sciences Division, U.S. above. You may also submit comments contains notices to the public of the proposed Army Garrison-Yuma, Yuma, Arizona through the Internet at issuance of rules and regulations. The 85365–9498. You may review the public www.regulations.gov. purpose of these notices is to give interested docket containing the proposal, any Commenters wishing the FAA to persons an opportunity to participate in the comments received, and any final acknowledge receipt of their comments rule making prior to the adoption of the final on this action must submit with those rules. disposition in person in the Docket Office between 9:00 a.m. and 5:00 p.m., comments a self-addressed, stamped Monday through Friday, except Federal postcard on which the following DEPARTMENT OF TRANSPORTATION holidays. The Docket Office (telephone statement is made: ‘‘Comments to FAA 1 (800) 647–5527), is on the ground Docket No. FAA–2016–7055 and Federal Aviation Administration floor of the building at the above Airspace Docket No. 15–AWP–11.’’ The address. postcard will be date/time stamped and 14 CFR Part 73 returned to the commenter. FOR FURTHER INFORMATION CONTACT: Paul All communications received on or [Docket No. FAA–2016–7055; Airspace Gallant, Airspace Policy Group, Office before the specified closing date for Docket No. 15–AWP–11] of Airspace Services, Federal Aviation comments will be considered before RIN 2120–AA66 Administration, 800 Independence taking action on the proposed rule. The Avenue SW., Washington, DC 20591; proposal contained in this action may Proposed Establishment of Restricted telephone: (202) 267–8783. be changed in light of comments Area R–2306F; Yuma Proving Ground, SUPPLEMENTARY INFORMATION: received. All comments submitted will AZ. Authority for This Rulemaking be available for examination in the public docket both before and after the AGENCY: Federal Aviation The FAA’s authority to issue rules Administration (FAA), DOT. closing date for comments. A report regarding aviation safety is found in summarizing each substantive public ACTION: Notice of proposed rulemaking Title 49 of the United States Code. contact with FAA personnel concerned (NPRM). Subtitle I, Section 106 describes the with this rulemaking will be filed in the authority of the FAA Administrator. SUMMARY: This action proposes to docket. Subtitle VII, Aviation Programs, establish restricted area R–2306F in the describes in more detail the scope of the Availability of NPRMs vicinity of Laguna Army Airfield at agency’s authority. Yuma Proving Ground, AZ. The An electronic copy of this document This rulemaking is promulgated proposed restricted area would allow may be downloaded through the under the authority described in the Department of the Army to Internet at www.regulations.gov. Subtitle VII, part A, subpart I, Section You may review the public docket maximize the existing fixed 40103. Under that section, the FAA is containing the proposal, any comments infrastructure to support hazardous test charged with prescribing regulations to received and any final disposition in programs and segregate these activities assign the use of the airspace necessary person at the Docket Office (see from non-participating aircraft at Yuma to ensure the safety of aircraft and the ADDRESSES section for address and Proving Ground (YPG). These programs efficient use of airspace. This regulation phone number) between 9:00 a.m. and include ground and airborne testing of is within the scope of that authority as 5:00 p.m., Monday through Friday, non-eye-safe lasers, high energy radars it would establish a restricted area at except Federal holidays. An informal and the development of unproven Yuma, AZ, to enhance aviation safety docket may also be examined during weapons systems. The restricted and accommodate essential Army normal business hours at the office of airspace would ensure the safe testing testing requirements. the Operations Support Group, Western and evaluation of these programs Service Center, Federal Aviation Comments Invited without impacting non-participating Administration, 1601 Lind Ave. SW., aircraft and the general public. Interested parties are invited to Renton, WA 98057. DATES: Comments must be received on participate in this proposed rulemaking or before September 8, 2016. by submitting such written data, views, Background ADDRESSES: Send comments on this or arguments as they may desire. Yuma Proving Ground (YPG) is a proposal to the U.S. Department of Comments that provide the factual basis Major Range and Test Facility Base that Transportation, Docket Operations, 1200 supporting the views and suggestions conducts the development and testing of New Jersey Avenue SE., West Building presented are particularly helpful in emerging aviation weapon technologies. Ground Floor, Room W12–140, developing reasoned regulatory This testing includes both ground and Washington, DC 20590; telephone: 1 decisions on the proposal. Comments air-to-ground propagation of non-eye- (800) 647–5527, or (202) 366–9826. You are specifically invited on the overall safe lasers, high power radars and must identify FAA Docket No. FAA– regulatory, aeronautical, economic, developmental, unproven weapons 2016–7055 and Airspace Docket No. 15– environmental, and energy-related systems. Testing includes the actual AWP–11, at the beginning of your aspects of the proposal. operation of these systems using various comments. You may also submit Communications should identify both proven and unproven aircraft platforms. comments through the Internet at http:// docket numbers (FAA Docket No. FAA– Due to the hazards of these systems, it www.regulations.gov. Comments on 2016–7055 and Airspace Docket No. 15– is imperative that these activities be environmental and land use aspects AWP–11) and be submitted in triplicate segregated within a restricted area. To should be directed to: Meg McDonald, to the Docket Office at the address listed safely and efficiently test and evaluate
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these technologies, YPG needs to use List of Subjects in 14 CFR Part 73 SUMMARY: The Bureau of the Census the existing airspace and ground Airspace, Prohibited areas, Restricted (Census Bureau) is issuing this infrastructure at Laguna Army Airfield. areas. document to extend the comment Use of the Airfield is limited to ‘‘official period on the Proposed 2020 Census business only’’ with ‘‘prior permission The Proposed Amendment Residence Criteria and Residence required.’’ Therefore, hazardous testing In consideration of the foregoing, the Situations, which was published in the could be conducted safely within Federal Aviation Administration Federal Register on June 30, 2016. The proposed R–2306F without impacting proposes to amend 14 CFR part 73 as comment period for the proposed non-participating aircraft. follows: criteria, which would have ended on August 1, 2016, is now extended until The Proposal PART 73—SPECIAL USE AIRSPACE September 1, 2016. The FAA is proposing an amendment ■ 1. The authority citation for part 73 DATES: Comments on the proposed to 14 CFR part 73 to establish a new continues to read as follows: criteria published on June 30, 2016 (81 restricted area, R–2306F, extending from FR 42577), must be received by Authority: 49 U.S.C. 106(f), 106(g); 40103, September 1, 2016. the surface to 1,700 feet MSL, in the 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, vicinity of Laguna Army Airfield at 1959–1963 Comp., p. 389. ADDRESSES: Direct all written comments Yuma Proving Ground, AZ. The regarding the Proposed 2020 Census § 73.23 Arizona [Amended] proposed area would be used for the Residence Criteria and Residence ■ testing of various hazardous systems 2. § 73.23 is amended as follows: Situations to Karen Humes, Chief, including non-eye-safe lasers, high * * * * * Population Division, U.S. Census energy radars and the development of R–2306F, Yuma West, AZ [New] Bureau, Room 6H174, Washington, DC 20233; or Email experimental weapons. Testing would Boundaries. Beginning at lat. 32° 51′ 52″ include the operation of these systems N., long. 114° 26′ 52″ W.; to lat. 32° 52′ 30″ [[email protected]]. from various aircraft platforms. N., long. 114° 21′ 03″ W.; to lat. 32° 51′ 15″ FOR FURTHER INFORMATION CONTACT: Restricted airspace is required to N., long. 114° 21′ 03″ W.; to lat. 32° 51′ 18″ Population and Housing Programs N., long. 114° 19′ 29″ W.; then clockwise Branch, U.S. Census Bureau, 6H185, effectively test these complex integrated ° ′ systems without posing a hazard to non- along a 3.5 NM arc centered at lat. 32 51 Washington, DC 20233, telephone (301) 52″ N., long. 114° 23′ 34″ W.; to lat. 32° 49′ participating aircraft and/or ground 30″ N., long. 114° 26′ 39″ W.; to lat. 32° 49′ 763–2381; or Email personnel. Proposed R–2306F would be 51″ N., long. 114° 26′ 38″ W.; to lat. 32° 50′ [[email protected]]. completely contained over YPG-owned 08″ N., long. 114° 26′ 33″ W.; to lat. 32° 50′ SUPPLEMENTARY INFORMATION: land. No supersonic flights would be 17″ N., long. 114° 26′ 19″ W.; to lat. 32° 50′ 31″ N., long. 114° 26′ 17″ W.; to lat. 32° 50′ Background conducted within the proposed ″ ° ′ ″ ° ′ airspace. 42 N., long. 114 26 29 W.; to lat. 32 51 The U.S. Census Bureau is committed 11″ N., long. 114° 26′ 34″ W.; to the point of to counting every person in the 2020 Regulatory Notices and Analyses beginning Designated altitudes. Surface to 1,700 feet Census once, only once, and in the right The FAA has determined that this MSL. place. The fundamental reason that the proposed regulation only involves an Time of designation. Intermittent, 0600– decennial census is conducted is to 1800 local time, Monday–Saturday; other fulfill the Constitutional requirement established body of technical times by NOTAM. regulations for which frequent and (Article I, Section 2) to apportion the Controlling agency. Yuma Approach seats in the U.S. House of routine amendments are necessary to Control, MCAS Yuma, AZ. keep them operationally current. It, Using agency. U.S., Army, Commanding Representatives among the states. Thus, therefore: (1) Is not a ‘‘significant Officer, Yuma Proving Ground, Yuma, AZ. for a fair and equitable apportionment, regulatory action’’ under Executive * * * * * it is crucial that the Census Bureau Order 12866; (2) is not a ‘‘significant counts everyone in the right place Issued in Washington, DC, on July 19, during the decennial census. rule’’ under Department of 2016. The residence criteria are used to Transportation (DOT) Regulatory Leslie M. Swann, Policies and Procedures (44 FR 11034; determine where people are counted Acting Manager, Airspace Policy Group. during each decennial census. For more February 26, 1979); and (3) does not [FR Doc. 2016–17558 Filed 7–22–16; 8:45 am] information on the Proposed 2020 warrant preparation of a regulatory BILLING CODE 4910–13–P Census Residence Criteria and evaluation as the anticipated impact is Residence Situations (also referred to as so minimal. Since this is a routine the proposed ‘‘2020 Census Residence matter that will only affect air traffic DEPARTMENT OF COMMERCE Rule and Residence Situations’’ in the procedures and air navigation, it is text of the earlier document), please see certified that this proposed rule, when Bureau of the Census the original document of proposed promulgated, will not have a significant criteria and request for comment economic impact on a substantial 15 CFR Chapter I published in the Federal Register on number of small entities under the [Docket Number 160526465–6618–02] June 30, 2016 (81 FR 42577). criteria of the Regulatory Flexibility Act. Because of the scope of the proposed Environmental Review Proposed 2020 Census Residence criteria, and in response to individuals Criteria and Residence Situations; and organizations who have requested This proposal will be subjected to an Extension of Comment Period more time to review the proposed environmental analysis in accordance AGENCY: Bureau of the Census, criteria, the Census Bureau has decided with FAA Order 1050.1F, Department of Commerce. to extend the comment period for an ‘‘Environmental Impacts: Policies and additional 31 days. This document ACTION: Proposed Criteria; Extension of Procedures,’’ prior to any FAA final announces the extension of the public Comment Period. regulatory action. comment period to September 1, 2016.
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Dated: July 19, 2016. the Federal eRulemaking Portal at Housing Act of 2009 (HEARTH Act). Nancy A. Potok, www.regulations.gov. HUD strongly The purpose of the CoC program is to Deputy Director, Bureau of the Census. encourages commenters to submit promote communitywide commitment [FR Doc. 2016–17484 Filed 7–22–16; 8:45 am] comments electronically. Electronic to the goal of ending homelessness; BILLING CODE 3510–07–P submission of comments allows the provide funding for efforts by nonprofit commenter maximum time to prepare providers, and State and local and submit a comment, ensures timely governments to quickly rehouse receipt by HUD, and enables HUD to homeless individuals and families while DEPARTMENT OF HOUSING AND make them immediately available to the minimizing the trauma and dislocation URBAN DEVELOPMENT public. Comments submitted caused to homeless individuals, 24 CFR Part 578 electronically through the families, and communities by www.regulations.gov Web site can be homelessness; promote access to and [Docket No. FR–5476–N–04] viewed by other commenters and effective utilization of mainstream interested members of the public. programs by homeless individuals and RIN 2506–AC29 Commenters should follow the families; and optimize self-sufficiency Continuum of Care Program: instructions provided on that site to among individuals and families Solicitation of Comment on Continuum submit comments electronically. experiencing homelessness. Section 427 of the McKinney Vento of Care Formula Note: To receive consideration as public comments, comments must be submitted Act, as amended by the HEARTH Act, AGENCY: Office of the Assistant through one of the two methods specified directs the Secretary to establish, by Secretary for Community Planning and above. Again, all submissions must refer to regulation, a funding formula that is Development, HUD. the docket number and title of the document. based upon factors that are appropriate ACTION: Notice; request for comments. No Facsimile Comments. Facsimile to allocate funds to meet the goals and (fax) comments are not acceptable. objectives of the CoC program. As part SUMMARY: On July 31, 2012, HUD Public Inspection of Public of the interim rule, HUD codified the published an interim rule, for public Comments. All properly submitted formula for establishing a CoC’s comment, entitled ‘‘Homeless comments and communications Preliminary Pro Rata Need (PPRN Emergency Assistance and Rapid submitted to HUD will be available for formula) that had been used for many Transition to Housing: Continuum of public inspection and copying between years prior to the interim rule to Care Program,’’ a program designed to 8 a.m. and 5 p.m. weekdays at the above establish a CoC’s PPRN. The PPRN address the critical problem of address. Due to security measures at the formula is a combination of the formula homelessness through a coordinated HUD Headquarters building, an advance used to award Emergency Solutions community-based process of identifying appointment to review the public Grants (ESG) Program grant funds and needs and building a system of housing comments must be scheduled by calling Community Development Block Grant and services to address those needs. the Regulations Division at 202–708– (CBDG) funds. Under the current PPRN HUD received 551 public comments on 3055 (this is not a toll-free number). formula, after a .2 percent set-aside for the interim rule. Approximately 42 of Individuals with speech or hearing U.S. territories and insular areas, 75 the public comments addressed the impairments may access this number percent of the total CoC allocation is Continuum of Care formula, with the through TTY by calling the Federal distributed to ESG entitlement majority of these commenters seeking Relay Service at 800–877–8339. Copies communities, generally comprised of changes to the formula. With the interim of all comments submitted are available large metropolitan cities and urban rule now in place for 3 years, HUD seeks for inspection and downloading at counties where homelessness is more additional comment on the Continuum www.regulations.gov. concentrated, according to the CDBG of Care formula. formula. The remaining 25 percent of Comment Due Date: September 23, FOR FURTHER INFORMATION CONTACT: the CoC allocation is distributed to ESG 2016. Norm Suchar, Director, Office of Special non-entitlement communities according Needs Assistance Programs, Office of ADDRESSES: Interested persons are to the CDBG formula. Within this Community Planning and Development, framework, the current CDBG formula is invited to submit comments regarding Department of Housing and Urban this rule to the Regulations Division, structured as a ‘‘dual formula’’ system. Development, 451 7th Street SW., As set forth below, Formula A allocates Office of General Counsel, 451 7th Washington, DC 20410–7000; telephone Street SW., Room 10276, Department of funds to communities based on the number 202–708–4300 (this is not a toll- following weighted factors: population, Housing and Urban Development, free number). Hearing- and speech- Washington, DC 20410–0500. poverty, and overcrowding. Formula B impaired persons may access this assigns a different weighting scheme to Communications must refer to the above number through TTY by calling the docket number and title. There are two an alternative menu of factors: Federal Relay Service at 800–877–8339 1 methods for submitting public population growth lag, poverty, and (this is a toll-free number). 2 comments. All submissions must refer pre-1940s housing. Specifically, the 3 to the above docket number and title. SUPPLEMENTARY INFORMATION: existing CDBG formulas are weighted as follows. 1. Submission of Comments by Mail. I. Background Comments may be submitted by mail to Continuum of Care (CoC) Interim Rule 1 Population growth lag identifies slower growing the Regulations Division, Office of communities or communities experiencing General Counsel, Department of On July 31, 2012, at 77 FR 45422, population loss as potential indicators of Housing and Urban Development, 451 HUD published in the Federal Register communities in decline and in need of 7th Street SW., Room 10276, an interim rule to implement the CoC development assistance. Washington, DC 20410–0500. authorized amendments to the 2 The share of housing units built before 1940 reflects the age of a community’s housing stock, a 2. Electronic Submission of McKinney-Vento Homeless Assistance potential indicator of blight. Comments. Interested persons may Act in the Homeless Emergency 3 For non-entitlement communities, Formula B submit comments electronically through Assistance and Rapid Transition to uses population instead of population growth lag.
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Formula A Formula B reductions in funding for renewal insulating potential formulas from the projects. limitations of directly including PIT 25% * population ...... 20% * population As a result of the comments received, counts. Further, by using factors growth lag. HUD has explored several alternative correlated with the PIT count, the 50% * poverty ...... 30% * poverty. factors relevant to homelessness for proposed formulas mitigate the risk of 25% * overcrowding .. 50% * pre-1940 hous- potential inclusion in the PPRN formula data fluctuations in PIT counts that may ing. and is re-opening the public comment be less prevalent in large Census period on the PPRN formula established Pursuant to this dual formula system, datasets. Finally, since PIT counts are in 24 CFR 578.17(a) of the interim rule HUD calculates the funding amounts for locally-generated and self-reported by for the purpose of seeking broader input each jurisdiction under both Formulas jurisdictions seeking funding under the on four proposed changes to the PPRN A and B and assigns the larger of the CoC program, direct inclusion of PIT formula described in this section of the two grant calculations, less a pro rata counts into an allocation formula may Notice before HUD selects the formula reduction to ensure the total amount create perverse incentives against to include in the final rule. In objective PIT count methodologies. allocated is within the amount developing the following proposals, Before considering any new factors, appropriated for funding. HUD reviewed the factors included in Section 427 of the McKinney Vento HUD considered the many comments the existing PPRN formula— Act, as amended by the HEARTH Act received in response to the formula in overcrowding, poverty, pre-1940s also allows HUD to adjust a CoC’s the interim rule, including those stating housing, and population—and their formula to ensure that the formula that the current formula utilizes factors correlation to rates of homelessness. amount is sufficient to renew existing that are not necessarily correlated with HUD conducted Pearson’s Correlation projects in each CoC for one year, which homelessness such as urban blight and analyses 6 and found that three of these is known as the Annual Renewal population growth lag, and the request factors had a positive and statistically Demand (ARD). In the FY 2015 that the PPRN formula be based on significant correlation with rates of Continuum of Care Program NOFA, and updated factors that are intended to homelessness. These were: (1) in several previous Continuum of Care specifically measure homelessness. In developing proposals for Overcrowding, with a .277 correlation; Program NOFAs, the amount of funding alternative factors to be included in the (2) poverty, with a .153 correlation; and that CoCs were eligible to receive was final formula, HUD sought to maintain (3) pre-1940s housing, with a .113 based primarily on their ARD and the the basic structure of the current PPRN correlation. Population was not shown PPRN formula had little impact on the formula, while investigating alternative to have a significant correlation with amount they were eligible to apply for. data sources and measures to be rates of homelessness in a community. Only for a minority of CoCs that had a included as formula factors. The In addition to analyzing factors PPRN that was larger than their ARD characteristics of the data sources for included in the current PPRN formula, did the PPRN formula affect funding, the four proposed alternative formula HUD also considered several other and in these cases, it only affected the factors were determined to be consistent potential factors related to housing amount available for new projects. The with HUD’s 2001 Report to Congress 4 markets, affordability, and PPRN formula would only have a more on measuring need for homeless grant demographics, as well as a hybrid factor significant impact on CoC funding if the funding. Namely, the data sources for that combined housing market and amount of funding available for the CoC the proposed factors 5 are: (1) Relevant affordability measures. Understanding program nationally is significantly to measuring homelessness, (2) accurate, these factors, along with their larger than the amount needed to renew (3) timely, and (4) readily available for correlation, is necessary to existing projects for one year. every jurisdiction. HUD chose not to understanding the formulas being Several stakeholders indicated that proposed for consideration. the existing PPRN formula was not incorporate the point-in-time count data into the formula because not all CoCs Broadly speaking, the potential representative of the number of formula factors chosen by HUD for individuals and families experiencing use the same methodology to conduct their counts—with some CoCs having analysis, and described more fully homelessness in their geographic area. below, represent important community- Therefore, the interim rule specifically stronger methodology than others—and because not all CoCs conduct annual level determinants of homelessness sought comment on the PPRN formula identified in the research literature. and the process for determining a CoC’s PIT counts. Instead, HUD used an average of two years of PIT count data Together, these factors represent three maximum award amount. HUD solicited related categories of known public comment through November 16, to compare how highly a factor being considered for the formula correlated determinants of homelessness: housing 2012 and of the 551 public comments market factors, economic conditions, that HUD received, approximately 42 with rates of homelessness. In this way, PIT counts helped quantify the and housing affordability (which public comments were directed to the combines housing market and economic PPRN formula. The majority of the relevance of potential formula factors to measuring homelessness, while factors). Other categories of known comments on the PPRN formula were community-level determinants of from western States, counties, and 4 See ‘‘Report to Congress: Measuring ‘‘Need’’ for homelessness, such as climate factors or cities, and indicated that the CDBG HUD’s McKinney-Vento Homeless Competitive the robustness and quality of a formula was not the appropriate basis Grants,’’ January 2001 at https:// community’s safety net of social for the PPRN formula because the CDBG www.hudexchange.info/resources/documents/ services for vulnerable populations, MeasuringNeed.pdf. formula utilizes urban blight, as were found to lack the type of data reflected in the age of housing stock, 5 Including the decennial Census (population), American Community Survey 5-Year Data (poverty, and population growth lag factors to overcrowding, pre-1940 housing, renter-occupied 6 Pearson’s correlation coefficients range from -1 allocate funds, which may measure units, average gross rent, rent-to-income ratio, to 1. A correlation coefficient of -1 or 1 indicates community development needs vacant rental units, and hybrid factor), and a perfect linear relationship (negative or positive, generally, but are not specifically Comprehensive Housing Affordability Strategy 5- respectively) between two variables, while a Year Data (affordability gap, rent-burdened correlation coefficient of 0 indicates a random tailored to measure homelessness. Other extremely low-income households, and hybrid relationship or no linear relationship between two commenters stated that they opposed factor). variables.
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measures (e.g., timely and readily dividing aggregate gross rent by the an affordability factor (rent-burdened available for each jurisdiction) number of renter-occupied housing ELI households) by a housing market necessary to be included as potential units) and rates of homelessness. factor (renter-occupied units), two formula factors. Similarly, some • Vacant rental units—HUD explored variables found to be correlated with demographic factors identified as this factor because some studies have homelessness (with correlations of .336 possible correlates to homelessness theorized that people are at higher risk and .444, respectively). This factor was were excluded from consideration due of homelessness in tight rental markets; calculated by multiplying the number of to data limitations. For example, however, HUD found no significant rent-burdened ELI households by the population growth lag could not be correlation between rental vacancy rates ratio of: the jurisdiction’s percentage of readily calculated for every jurisdiction (calculated by dividing the number of renter-occupied units divided by the due to changes in geographic vacant rental units by total rental units) national percentage of renter-occupied boundaries since 1960 that artificially and rates of homelessness. Therefore, it units. HUD found that this hybrid factor affect population counts. was not used in any of the proposed had a .393 correlation with rates of Potential Housing Market Factors: formulas for consideration. homelessness. • Affordability gap—This factor was HUD considered the following potential II. Proposed PPRN Formula Options for housing market factors: created to measure the gap between the demand for and supply of rental units Public Comment • Renter-occupied units—HUD that are both affordable and available to explored this factor because renters After reviewing the simple (bivariate) Extremely Low-Income (ELI) 7 renter generally experience higher housing Pearson’s correlations between rates of households. HUD considered this factor instability than inhabitants of owner- homelessness and each of the above because ELI households have been occupied units. They are also more factors, HUD considered many different shown to be at a greater risk of housing options for leveraging a combination of vulnerable to steep or sudden increases instability and homelessness. For this these factors into a formula that would in rent, may be more economically factor, HUD found a .310 correlation better capture pro-rata need than any unstable, and are subject to evictions as between this factor as a percentage of single factor on its own. HUD a result of non-payment of rent which total housing units and rates of considered various factor weights as tend to happen more quickly than the homelessness. foreclosure process. For this factor, HUD Potential Affordability Factors: HUD representing the relative magnitude of found a .444 correlation between renter- considered the following potential each factor’s effect on need within a occupied units as a percentage of all factors related to the cost of housing particular formula combination. The occupied housing units and rates of combined with renters’ ability to pay: proposed weights represent what HUD homelessness. • Rent-to-income ratio is the views to be reasonable options for • Average gross rent—HUD explored comparison of how much rent people weighting the relative magnitudes of this factor because several studies have pay when compared to their income in factors within each formula option found measures of ‘‘rent level’’ to be the designated geographic area. HUD based on its simple correlational significantly correlated to higher rates of found a .288 correlation with rates of analyses and the theoretical homelessness. However, this aggregate homelessness. relationships between sets of factors and measure encompasses the entire rental • Rent-burdened ELI households are homelessness documented in market and may not be a good indicator those ELI households that pay more established research literature. of the rent pressures specifically faced than 30% of their gross income for HUD seeks comment on the four by individuals and families housing. HUD found a .336 correlation formula options set out in the table experiencing homelessness or at risk of with rates of homelessness. below. HUD believes these options are homelessness. For this factor, HUD Hybrid Factor: HUD considered one better correlated with rates of found a .248 correlation between factor, developed specifically for the homelessness at the local level than the average gross rent (calculated by purposes of this formula, that weighted current PPRN formula.
Formula A Formula B Formula C Formula D
10% * population ...... 25% * poverty ...... 25% * population ...... 25% * poverty 15% * poverty ...... 25% * affordability gap ...... 25% * poverty ...... 25% * affordability gap 25% * affordability gap ...... 25% * rent-burdened ELI house- 50% * hybrid factor ...... 50% * hybrid factor holds. 25% * rent-burdened ELI house- 25% * rental units. holds. 25% * rental units.
None of these proposed PPRN formula and rural areas most in need of dual calculation system utilized under options include the 75%/25% split homeless assistance, whether by ESG the current PPRN formula. between entitlement and non- entitlement designation, population HUD has posted, on its Web site, a entitlement communities that is a part density considerations, or otherwise. In listing of each CoC’s existing PPRN of the current formula. In addition to addition, HUD welcomes comments on amount (as determined using the comments on the proposed formulas set whether any of the four proposed existing formula) as well as the amount forth above, HUD welcomes comments options should be combined into a dual that each CoC’s PPRN would be using on factors and corresponding weights or multi-formula system similar to the each of these four proposed formulas. that will target formula funding to urban HUD has also published a tool on its
7 ELI households consist of families with incomes that do not exceed 30 percent of the area median income.
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Web site that stakeholders can use to openings during the early morning clearance of 35 feet in the intermediate adjust the weights of the proposed hours. They have also requested to position. The US41 bridge is a bi-level factors and determine the resulting expand and modify the current winter bridge originally designed with the PPRN. This tool can be used to explore operating schedule. upper level providing access for formula options, using the factors listed DATES: Comments and related material automobiles and the lower level above, other than the four formula must reach the Coast Guard on or before providing access for rail, oversized options already published by HUD on August 24, 2016. vehicles, and snowmobiles. its Web site. Using all of this ADDRESSES: You may submit comments The rail service to the peninsula has information, HUD seeks comment on identified by docket number USCG– been discontinued and oversized the proposed formulas made available 2016–0582 using Federal eRulemaking vehicles must provide advance notice to as well as any new formulas and factors Portal at http://www.regulations.gov. the state before traveling over the road relevant to the goals and objectives of See the ‘‘Public Participation and to the peninsula. Most recreational and the CoC program for HUD to consider. Request for Comments’’ portion of the commercial vessel traffic, including Additionally, HUD acknowledges that SUPPLEMENTARY INFORMATION section passenger vessel services, end prior to each of the proposed formula options below for instructions on submitting November 15 each year and do not will result in the PPRN amounts of some comments. resume services until after May 7 due to CoCs decreasing. To prevent against a the formation of ice in the waterway. CoC losing a substantial amount of FOR FURTHER INFORMATION CONTACT: If Large commercial freighter vessels do PPRN in a given year, HUD is you have questions on this proposed not routinely pass through the considering including language that rule, call or email Mr. Lee D. Soule, Keweenaw Waterway. would prevent a CoC from losing more Bridge Management Specialist, U.S. The current regulation, 33 CFR than a certain portion of their PPRN. For Coast Guard; telephone 216–650–5408, 117.635, requires the bridge to operate example, if a CoC’s current PPRN email [email protected]. with a 24-hour advance notice for amount is $2.5 million and a newly SUPPLEMENTARY INFORMATION: openings from January 1 through March adopted PPRN formula would result in I. Table of Abbreviations 15 each year. From March 16 through the CoC’s PPRN amount being reduced December 31 the bridge opens on signal to $1.7 million, HUD could consider CFR Code of Federal Regulations at all times. language that would provide the CoC DHS Department of Homeland Security E.O. Executive order III. Discussion of Proposed Rule with more than $1.7 million in PPRN, FR Federal Register but less than $2.5 million. HUD seeks This rule proposes to amend 33 CFR MDOT Michigan Department of 117.635 in accordance with the below comment on this proposal and also, Transportation what the appropriate amount or portion NPRM Notice of proposed rulemaking described changes. The table below to be protected should be. SNPRM Supplemental notice of proposed shows total bridge opening data HUD welcomes other comments on rulemaking provided by MDOT, from April 16 to how the CoC formula may be improved. Pub. L. Public Law December 14, between the hours of § Section midnight and 4 a.m., for the past 6 Dated: July 19, 2016. U.S.C. United States Code years. Harriet Tregoning, II. Background, Purpose and Legal Principal Deputy Assistant Secretary for Year Openings Community Planning and Development. Basis [FR Doc. 2016–17567 Filed 7–22–16; 8:45 am] MDOT has requested to change the 2010 ...... 4 BILLING CODE 4210–67–P operating schedule of the US41 bridge at 2011 ...... 6 mile 16.0. The US41 bridge is the only 2012 ...... 6 crossing over the Keweenaw Waterway 2013 ...... 10 2014 ...... 7 DEPARTMENT OF HOMELAND and connects the towns of Houghton 2015 ...... 6 SECURITY and Hancock, Michigan. The current operating schedule has been in place for This proposed rule would allow the Coast Guard approximately 31 years and the use of bridge to operate with at least a 2-hour the waterway has significantly changed, advance notice for openings from April 33 CFR Part 117 prompting the request to modify the 15 through December 14 between the [Docket No. USCG–2016–0582 current regulation. hours of midnight and 4 a.m. During Keweenaw Peninsula is the these hours no bridge tender will be RIN 1625–AA09 northernmost part of Michigan’s Upper required at the bridge. The bridge will Peninsula projecting into Lake Superior. Drawbridge Operation Regulation; be placed in the intermediate position The Keweenaw Waterway runs during this 4-hour time period Keweenaw Waterway, Houghton and northwesterly to southeasterly and Hancock, MI providing a vertical clearance of 35 feet. separates the peninsula from the Vessels requiring a full bridge opening AGENCY: Coast Guard, DHS. mainland making the US41 bridge the will still be able to obtain an opening ACTION: Notice of proposed rulemaking. only bridge crossing for residents and with a 2-hour advance notice. Vessels visitors to the peninsula. may also go around the peninsula to SUMMARY: The Coast Guard proposes to The Keweenaw Waterway is used by avoid passing through the bridge. change the operating schedule that recreational, commercial, inspected and The table below shows the total governs the US41 bridge, mile 16.0 over uninspected passenger, and towing bridge opening data provided by MDOT, the Keweenaw Waterway between the vessels. The US41 bridge is a vertical lift between December 15 and April 15, for towns of Houghton and Hancock, type drawbridge and provides a the past 5 years. Michigan. The Michigan Department of horizontal clearance of 250 feet, a Transportation (MDOT) has requested a vertical clearance of 103 feet in the fully Year Openings review of the current operating schedule open position, a vertical clearance of 7 of the drawbridge due to a lack of feet in the closed position, and a vertical 2011 0
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Year Openings may be small entities, for the reasons E. Unfunded Mandates Reform Act stated in section IV.A above this The Unfunded Mandates Reform Act 2012 1 proposed rule would not have a of 1995 (2 U.S.C. 1531–1538) requires 2013 5 significant economic impact on any Federal agencies to assess the effects of 2014 0 vessel owner or operator. 2015 0 their discretionary regulatory actions. In If you think that your business, particular, the Act addresses actions organization, or governmental This proposed rule would allow the that may result in the expenditure by a jurisdiction qualifies as a small entity State, local, or tribal government, in the bridge to operate with at least a 12-hour and that this rule would have a advance notice for openings from aggregate, or by the private sector of significant economic impact on it, $100,000,000 (adjusted for inflation) or December 15 through April 14. During please submit a comment (see these hours no bridge tender will be more in any one year. Though this ADDRESSES) explaining why you think it proposed rule will not result in such an required at the bridge. Vessels may also qualifies and how and to what degree go around the peninsula to avoid expenditure, we do discuss the effects of this rule would economically affect it. this proposed rule elsewhere in this passing under the bridge. Under section 213(a) of the Small preamble. At all other times, the bridge will Business Regulatory Enforcement continue to open on signal. Fairness Act of 1996 (Public Law 104– F. Environment IV. Regulatory Analyses 121), we want to assist small entities in We have analyzed this proposed rule understanding this proposed rule. If the under Department of Homeland We developed this proposed rule after rule would affect your small business, considering numerous statutes and Security Management Directive 023–01 organization, or governmental and Commandant Instruction Executive Orders related to rulemaking. jurisdiction and you have questions M16475.lD, which guides the Coast Below we summarize our analyses concerning its provisions or options for Guard in complying with the National based on these statutes and Executive compliance, please contact the person Environmental Policy Act of 1969 Orders and we discuss First listed in the FOR FURTHER INFORMATION (NEPA)(42 U.S.C. 4321–4370f), and Amendment rights of protestors. CONTACT, above. The Coast Guard will have made a preliminary determination A. Regulatory Planning and Review not retaliate against small entities that that this action is one of a category of question or complain about this Executive Orders 12866 and 13563 actions which do not individually or proposed rule or any policy or action of cumulatively have a significant effect on direct agencies to assess the costs and the Coast Guard. benefits of available regulatory the human environment. This proposed alternatives and, if regulation is C. Collection of Information rule simply promulgates the operating necessary, to select regulatory regulations or procedures for This proposed rule would call for no drawbridges. Normally such actions are approaches that maximize net benefits. new collection of information under the categorically excluded from further Executive Order 13563 emphasizes the Paperwork Reduction Act of 1995 (44 review, under figure 2–1, paragraph importance of quantifying both costs U.S.C. 3501–3520.). (32)(e), of the Instruction. and benefits, of reducing costs, of Under figure 2–1, paragraph (32)(e), of harmonizing rules, and of promoting D. Federalism and Indian Tribal Government the Instruction, an environmental flexibility. This NPRM has not been analysis checklist and a categorical designated a ‘‘significant regulatory A rule has implications for federalism exclusion determination are not action,’’ under Executive Order 12866. under Executive Order 13132, required for this rule. We seek any Accordingly, the NPRM has not been Federalism, if it has a substantial direct comments or information that may lead reviewed by the Office of Management effect on the States, on the relationship to the discovery of a significant and Budget. between the national government and environmental impact from this This regulatory action determination the States, or on the distribution of proposed rule. is based on the infrequent requests for power and responsibilities among the openings and the ability of vessels to various levels of government. We have G. Protest Activities still transit the bridge given advanced analyzed this proposed rule under that The Coast Guard respects the First notice. Additionally, vessels may go Order and have determined that it is Amendment rights of protesters. around the peninsula. consistent with the fundamental Protesters are asked to contact the federalism principles and preemption B. Impact on Small Entities person listed in the FOR FURTHER requirements described in Executive INFORMATION CONTACT section to The Regulatory Flexibility Act of 1980 Order 13132. coordinate protest activities so that your (RFA), 5 U.S.C. 601–612, as amended, Also, this proposed rule does not have message can be received without requires federal agencies to consider the tribal implications under Executive jeopardizing the safety or security of potential impact of regulations on small Order 13175, Consultation and people, places or vessels. entities during rulemaking. The term Coordination with Indian Tribal ‘‘small entities’’ comprises small Governments, because it would not have V. Public Participation and Request for businesses, not-for-profit organizations a substantial direct effect on one or Comments that are independently owned and more Indian tribes, on the relationship We view public participation as operated and are not dominant in their between the Federal Government and essential to effective rulemaking, and fields, and governmental jurisdictions Indian tribes, or on the distribution of will consider all comments and material with populations of less than 50,000. power and responsibilities between the received during the comment period. The Coast Guard certifies under 5 U.S.C. Federal Government and Indian tribes. Your comment can help shape the 605(b) that this proposed rule would not If you believe this proposed rule has outcome of this rulemaking. If you have a significant economic impact on implications for federalism or Indian submit a comment, please include the a substantial number of small entities. tribes, please contact the person listed docket number for this rulemaking, While some owners or operators of in the FOR FURTHER INFORMATION indicate the specific section of this vessels intending to transit the bridge CONTACT section above. document to which each comment
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applies, and provide a reason for each LIBRARY OF CONGRESS terms for the section 115 license. 17 suggestion or recommendation. U.S.C. 801(b)(1), 804(b)(4). Accordingly, We encourage you to submit Copyright Royalty Board the Judges commenced the current comments through the Federal proceeding in January 2016, by eRulemaking Portal at http:// 37 CFR Part 385 publishing notice of the commencement www.regulations.gov. If your material [Docket No. 16–CRB–0003–PR (2018–2022)] and a request that interested parties cannot be submitted using http:// submit petitions to participate. See 81 www.regulations.gov, contact the person Determination of Rates and Terms for FR 255 (Jan. 5, 2016). in the FOR FURTHER INFORMATION Making and Distributing Phonorecords The Judges received petitions to CONTACT section of this document for (Phonorecords III) participate in the current proceeding alternate instructions. from Amazon Digital Services, Inc.; AGENCY: Copyright Royalty Board, Apple, Inc.; American Society of We accept anonymous comments. All Library of Congress. Composers, Authors and Publishers comments received will be posted ACTION: Proposed rule. (ASCAP); Broadcast Music, Inc. (BMI); without change to http:// Church Music Publishers Association; www.regulations.gov and will include SUMMARY: The Copyright Royalty Judges David Powell; Deezer S.A.; Digital any personal information you have publish for comment proposed Media Association (DiMA); Gear provided. For more about privacy and regulations that set rates and terms Publishing Co; GEO Music Group; the docket, you may review a Privacy applicable during the period beginning Google, Inc.; Music Reports, Inc.; Act notice regarding the Federal Docket January 1, 2018, and ending December Nashville Songwriters Association Management System in the March 24, 31, 2022, for the section 115 statutory International; National Music Publishers 2005, issue of the Federal Register (70 license for making and distributing Association; Harry Fox Agency; FR 15086). phonorecords of nondramatic musical Omnifone Group Limited; Pandora Documents mentioned in this notice, works. Media, Inc.; Recording Industry and all public comments, are in our DATES: Comments and objections, if any, Association of America, Inc. (RIAA); online docket at http:// are due no later than August 24, 2016. Rhapsody International, Inc.; www.regulations.gov and can be viewed ADDRESSES: The proposed rule is posted Songwriters of North America; Sony by following that Web site’s on the agency’s Web site (www.loc.gov/ Music Entertainment; SoundCloud instructions. Additionally, if you go to crb) and on the web at Regulations.gov Limited; Spotify USA Inc.; Universal the online docket and sign up for email (www.regulations.gov). Interested Music Group (UMG); and Warner Music alerts, you will be notified when parties should submit electronic Group (WMG). comments are posted or a final rule is The Judges gave notice to all comments via email to [email protected]. published. participants of the three-month Those who chose not to submit negotiation period required by 17 U.S.C. comments electronically should see List of Subjects in 33 CFR Part 117 803(b)(3) and directed that, if the How to Submit Comments in the participants were unable to negotiate a Bridges. SUPPLEMENTARY INFORMATION section settlement, they should submit Written below for physical addresses and further For the reasons discussed in the Direct Statements no later than October instructions. preamble, the Coast Guard proposes to 3, 2016. On June 15, 2016, the Judges amend 33 CFR part 117 as follows: FOR FURTHER INFORMATION CONTACT: received a motion stating that several Kimberly Whittle, Attorney Advisor, by participants 1 had reached a partial PART 117—DRAWBRIDGE telephone at (202) 707–7658, or by OPERATION REGULATIONS settlement ‘‘among a significant portion email at [email protected]. of the sound recording and music SUPPLEMENTARY INFORMATION: ■ 1. The authority citation for part 117 publishing industries’’ regarding the continues to read as follows: Background rates and terms under Section 115 of the Copyright Act for physical Authority: 33 U.S.C. 499; 33 CFR 1.05–1; Section 115 of the Copyright Act, title phonorecords, permanent digital Department of Homeland Security Delegation 17 of the United States Code, requires a downloads, and ringtones for 2018– No. 0170.1. copyright owner of a nondramatic 2022 rate period and seeking approval ■ 2. Revise § 117.635 to read as follows: musical work to grant a license (also of that partial settlement. See Joint known as the ‘‘mechanical’’ compulsory Motion to Adopt Partial Settlement, § 117.635 Keweenaw Waterway license) to any person who wants to Docket No. 16–CRB–0003–PR (2018– The draw of the US41 bridge, mile make and distribute phonorecords of 2022) at 1 (June 15, 2016) (Motion). 16.0 between Houghton and Hancock, that work, provided that the copyright The settlement proposes ‘‘that the shall open on signal; except that from owner has allowed phonorecords of the royalty rates and terms presently set April 15 through December 14, between work to be produced and distributed, forth in 37 C.F.R. Part 385 Subpart A midnight and 4 a.m., the draw shall be and that the licensee complies with the should be continued for the rate period placed in the intermediate position and statute and regulations. In addition to at issue in the Proceeding, with one open on signal if at least 2 hours notice the production or distribution of minor conforming update, namely, that is given. From December 15 through physical phonorecords (compact discs, an outdated cross reference in section April 14 the draw shall open on signal vinyl, cassette tapes, and the like), 385.4 regarding statements of account be if at least 12 hours notice is given. section 115 applies to digital updated, and that the continued rates transmissions of phonorecords, Dated: July 12, 2016. including permanent digital downloads 1 The participants filing the motion were Church J.E. Ryan, and ringtones. Music Publishers Association, Nashville Rear Admiral, U.S. Coast Guard, Commander, Chapter 8 of the Copyright Act Songwriters Association International, National Ninth Coast Guard District. Music Publishers Association, Harry Fox Agency, requires the Copyright Royalty Judges and Songwriters of North America (collectively self- [FR Doc. 2016–17544 Filed 7–22–16; 8:45 am] (Judges) to conduct proceedings every named the ‘‘Copyright Owners’’), and licensees BILLING CODE 9110–04–P five years to determine the rates and UMG and WMG.
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should apply to ‘‘Subpart A respective successors, and any entity PART 385—RATES AND TERMS FOR Configurations made and distributed by controlling, controlled by, or under common USE OF MUSICAL WORKS UNDER or on behalf of UMG and WMG’’ and, control with any such entity, when it has COMPULSORY LICENSE FOR MAKING in the Judges’ discretion, to other obtained a compulsory license under 17 AND DISTRIBUTING OF PHYSICAL licensees. Motion at 3. U.S.C. 115, and the implementing regulations, to make and distribute AND DIGITAL PHONORECORDS Section 801(b)(7)(A) of the Copyright phonorecords of a nondramatic musical ■ Act authorizes the Judges to adopt rates work, including by means of a digital 1. The authority citation for part 385 and terms negotiated by ‘‘some or all of phonorecord delivery. continues to read as follows: the participants in a proceeding at any The Judges solicit comments on Authority: 17 U.S.C. 115, 801(b)(1), time during the proceeding’’ provided 804(b)(4). they are submitted to the Judges for whether they should adopt the proposed approval. This section provides that regulations, including the change in the § 385.1 [Amended] Judges shall provide notice and an cross reference, as statutory rates and ■ 2. Section 385.1(a) is amended by opportunity to comment on the terms relating to the making and adding ‘‘, during the period January 1, agreement to (1) those that would be distribution of physical or digital 2018, through December 31, 2022’’ after bound and (2) participants in the phonorecords of nondramatic musical ‘‘17 U.S.C. 115’’. proceeding that would be bound by the works for the participants that terms, rates, or other determination set submitted the Motion. In addition, the § 385.4 [Amended] by the agreement. See section Judges seek comment on whether they ■ 3. Section 385.4 is amended by 801(b)(7)(A). The Judges may decline to should apply the rates and terms in the removing ‘‘§ 201.19(e)(7)(i)’’ and adding adopt the agreement as a basis for partial settlement to all copyright ‘‘§ 210.16(g)(1)’’ in its place. owners and licensees and whether they statutory terms and rates for participants Dated: July 19, 2016. should specify the five-year period in not party to the agreement if any Suzanne M. Barnett, participant objects and the Judges the regulation. Chief Copyright Royalty Judge. conclude that the agreement does not Comments and objections must be provide a reasonable basis for setting submitted no later than August 24, [FR Doc. 2016–17437 Filed 7–22–16; 8:45 am] statutory terms or rates. Id. 2016. BILLING CODE 1410–72–P If the Judges adopt rates and terms How To Submit Comments reached pursuant to a negotiated settlement, those rates and terms are Interested members of the public must ENVIRONMENTAL PROTECTION binding on all copyright owners of submit comments to only one of the AGENCY musical works and those using the following addresses. If not commenting musical works in the activities by email or online, commenters must 40 CFR Part 63 described in the proposed regulations. submit an original of their comments, [EPA–HQ–OAR–2011–0817; FRL–9949–45– Proposed Adjustments to Rates and five paper copies, and an electronic OAR] Terms version in searchable PDF format on a CD. RIN 2060–AS98 In publishing the parties’ proposed Email: [email protected]; or rates and terms, the Judges are making National Emission Standards for the requested change in the cross Online: http://www.regulations.gov; or Hazardous Air Pollutants for the reference because it is clearly outdated. U.S. mail: Copyright Royalty Board, Portland Cement Manufacturing The text of the section it refers to merely P.O .Box 70977, Washington, DC 20024– Industry 0977; or says ‘‘reserved.’’ In addition, the Judges AGENCY: Environmental Protection propose adding the dates of the five-year Overnight service (only USPS Express Agency (EPA). period to the ‘‘General’’ section in order Mail is acceptable): Copyright Royalty ACTION: Proposed rule. to specify the applicable dates of the Board, P.O. Box 70977, Washington, DC rates and terms. 20024–0977; or SUMMARY: The Environmental Protection In the event the Judges determine not Commercial courier: Address package Agency (EPA) is proposing to amend the to adopt the proposed regulations for all to: Copyright Royalty Board, Library of National Emission Standards for copyright owners of musical works Congress, James Madison Memorial Hazardous Air Pollutants for the licensed under section 115 for the Building, LM–403, 101 Independence Portland Cement Manufacturing making or distributing of physical or Avenue SE., Washington, DC 20559– Industry. In the ‘‘Rules and digital phonorecords, the parties have 6000. Deliver to: Congressional Courier Regulations’’ section of this Federal proposed the following revised Acceptance Site, 2nd Street NE., and D Register, we are publishing a direct final 2 definition of licensee , which would Street NE., Washington, DC; or rule, without a prior proposed rule, that make the rates in the partial settlement corrects an inadvertent error and applicable only to ‘‘Subpart A Hand delivery: Library of Congress, James Madison Memorial Building, LM– temporarily revises the testing and Configurations made and distributed by monitoring requirements for or on behalf of [licensees] UMG and 401, 101 Independence Avenue SE., Washington, DC 20559–6000. hydrochloric acid (HCl) due to the WMG’’: current unavailability of a calibration Licensee is Capitol Christian Music Group, List of Subjects in 37 CFR Part 385 gas used for quality assurance purposes. Inc., Capitol Records, LLC, UMG Recordings, If we receive no adverse comment, we Inc., Warner Music Inc., any of their Copyright, Phonorecords, Recordings. will not take further action on this Proposed Regulations 2 The current definition is: ‘‘Licensee is a person proposed rule. or entity that has obtained a compulsory license For the reasons set forth in the DATES: Written comments must be under 17 U.S.C. 115, and the implementing received by August 24, 2016. regulations, to make and distribute phonorecords of preamble, the Copyright Royalty Judges a nondramatic musical work, including by means propose to amend 37 CFR part 385 as ADDRESSES: Submit your comments, of a digital phonorecord delivery.’’ 37 CFR 385.2. follows: identified by Docket ID No. EPA–HQ–
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OAR–2011–0817, to the Federal subsequent final rule based on this ENVIRONMENTAL PROTECTION eRulemaking Portal: http:// proposed rule. AGENCY www.regulations.gov. If we receive adverse comment on a 40 CFR Part 171 Follow the online instructions for distinct provision of the direct final submitting comments. Once submitted, rule, we will publish a timely [EPA–HQ–OPP–2011–0183; FRL–9947–75] comments cannot be edited or withdrawal in the Federal Register RIN 2070–AJ20 withdrawn. The EPA may publish any indicating which provisions we are comment received to its public docket. withdrawing. The provisions that are Notification of Submission to the Do not submit electronically any not withdrawn will become effective on Secretary of Agriculture; Pesticides; information you consider to be the date set out in the direct final rule, Certification of Pesticide Applicators Confidential Business Information (CBI) notwithstanding adverse comment on or other information whose disclosure is AGENCY: Environmental Protection any other provision. We do not intend restricted by statute. Multimedia Agency (EPA). to institute a second comment period on submissions (audio, video, etc.) must be ACTION: Notification of submission to accompanied by a written comment. this action. Any parties interested in the Secretary of Agriculture. The written comment is considered the commenting must do so at this time. official comment and should include The regulatory text for this proposal is SUMMARY: This document notifies the discussion of all points you wish to identical to that for the direct final rule public as required by the Federal make. The EPA will generally not published in the ‘‘Rules and Insecticide, Fungicide, and Rodenticide consider comments or comment Regulations’’ section of this Federal Act (FIFRA) that the EPA Administrator has forwarded to the Secretary of the contents located outside of the primary Register. For further supplementary United States Department of Agriculture submission (i.e., on the Web, Cloud, or information, the detailed rationale for (USDA) a draft regulatory document other file sharing system). For this proposal and the regulatory additional submission methods, the full concerning the certification of pesticide revisions, see the direct final rule applicators rule revisions. The draft EPA public comment policy, published in the ‘‘Rules and information about CBI or multimedia regulatory document is not available to Regulations’’ section of this Federal the public until after it has been signed submissions, and general guidance on Register. making effective comments, please visit and made available by EPA. http://www2.epa.gov/dockets/ II. Does this action apply to me? DATES: See Unit I. under SUPPLEMENTARY commenting-epa-dockets. INFORMATION. Categories and entities potentially ADDRESSES: The docket for this action, FOR FURTHER INFORMATION CONTACT: Ms. regulated by this proposed rule include: Sharon Nizich, Sector Policies and identified by docket identification (ID) Programs Division (D243–02), Office of number EPA–HQ–OPP–2011–0183, is Category NAICS available at http://www.regulations.gov Air Quality Planning and Standards, Code 1 U.S. Environmental Protection Agency, or at the Office of Pesticide Programs Research Triangle Park, North Carolina Portland cement manufacturing fa- Regulatory Docket (OPP Docket) in the 27711; telephone number: (919) 541– cilities ...... 327310 Environmental Protection Agency Docket Center (EPA/DC), West William 2825; fax number: (919) 541–5450; and 1 North American Industry Classification email address: [email protected]. Jefferson Clinton Bldg., Rm. 3334, 1301 System. Constitution Ave. NW., Washington, DC SUPPLEMENTARY INFORMATION: This table is not intended to be 20460–0001. The Public Reading Room I. Why is the EPA issuing this proposed exhaustive, but rather provides a guide is open from 8:30 a.m. to 4:30 p.m., rule? for readers regarding entities likely to be Monday through Friday, excluding legal holidays. The telephone number for the regulated by this proposed rule. To This document proposes to take Public Reading Room is (202) 566–1744, determine whether your facility is action on amendments to the National and the telephone number for the OPP Emission Standards for Hazardous affected, you should examine the Docket is (703) 305–5805. Please review Pollutants for the Portland Cement applicability criteria in 40 CFR 63.1340. the visitor instructions and additional Manufacturing Industry. We have If you have any questions regarding the information about the docket available published a direct final rule to amend applicability of any aspect of this this at http://www.epa.gov/dockets. 40 CFR part 63, subpart LLL by action to a particular entity, consult FOR FURTHER INFORMATION CONTACT: correcting an inadvertent error and either the air permitting authority for Michelle Arling, Field and External revising the testing and monitoring the entity or your EPA Regional Affairs Division (7506P), Office of requirements for HCl in the ‘‘Rules and representative as listed in 40 CFR 63.13. Pesticide Programs, Environmental Regulations’’ section of this Federal III. Statutory and Executive Orders Protection Agency, 1200 Pennsylvania Register because we view this as a Ave. NW., Washington, DC 20460–0001; noncontroversial action and anticipate For a complete discussion of the telephone number: (703) 308–5891; no adverse comment. We have administrative requirements applicable email address: [email protected]. explained our reasons for this action in to this action, see the direct final rule in SUPPLEMENTARY INFORMATION: the preamble to the direct final rule. the ‘‘Rules and Regulations’’ section of I. What action is EPA taking? If we receive no adverse comment, we this Federal Register. will not take further action on this Section 25(a)(2)(B) of FIFRA requires proposed rule. If we receive adverse Dated: July 14, 2016. the EPA Administrator to provide the comment on a distinct portion of the Gina McCarthy, Secretary of USDA with a copy of any direct final rule, we will withdraw that Administrator. draft final rule at least 30 days before portion of the rule and it will not take [FR Doc. 2016–17292 Filed 7–22–16; 8:45 am] signing it in final form for publication effect. In this instance, we would BILLING CODE 6560–50–P in the Federal Register. The draft final address all public comments in any rule is not available to the public until
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after it has been signed by EPA. If the receiving the draft final rule, the EPA List of Subjects in Part 171 Secretary of USDA comments in writing Administrator may sign the final rule for Environmental protection, regarding the draft final rule within 15 publication in the Federal Register any Agricultural worker safety, Applicator days after receiving it, the EPA time after the 15-day period. competency, Pesticide safety training, Administrator shall include the II. Do any statutory and executive order Pesticide worker safety, Pesticides and comments of the Secretary of USDA, if reviews apply to this notification? pests, Restricted use pesticides. requested by the Secretary of USDA, and the EPA Administrator’s response No. This document is merely a Dated: July 15, 2016. to those comments with the final rule notification of submission to the Jack E. Housenger, that publishes in the Federal Register. Secretary of USDA. As such, none of the Director, Office of Pesticide Programs. If the Secretary of USDA does not regulatory assessment requirements [FR Doc. 2016–17405 Filed 7–22–16; 8:45 am] comment in writing within 15 days after apply to this document. BILLING CODE 6560–50–P
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Notices Federal Register Vol. 81, No. 142
Monday, July 25, 2016
This section of the FEDERAL REGISTER The Forest Service is seeking back to 1984. Many changes have contains documents other than rules or comments from individuals, occurred since that time, in terms of proposed rules that are applicable to the organizations, and local, state, and type and volume of use, general public. Notices of hearings and investigations, federal agencies that may be interested population pressures, urban interface committee meetings, agency decisions and in or affected by the proposed action development, and other factors. Further, rulings, delegations of authority, filing of petitions and applications and agency (described below). Comments may the improved precision of field statements of organization and functions are pertain to the nature and scope of the measurements (i.e., global positioning examples of documents appearing in this environmental, social, and economic system devices) and graphical depiction section. issues, and possible alternatives related of route locations and management area to the development of the travel boundaries has at times resulted in management plan and EIS. Scoping perceived conflicts with data published DEPARTMENT OF AGRICULTURE notices have been sent to potentially in 1984. affected persons and those that have The settlement agreement referenced Forest Service expressed a continued interest in this herein identified a subset of MVUM project. Other interested individuals, designated roads and trails that were Pike/San Isabel National Forests; organizations, or agencies may have being managed contrary to Forest Plan Colorado; Pike/San Isabel National their names added to the mailing list for direction. Alternatives A and B Forests Travel Management Plan this project at any time by submitting a represent the issues addressed in the settlement agreement. Alternatives C AGENCY: Forest Service, USDA. request to the PSI Forest Planner, John Dow at 719–553–1476 ([email protected]). and D represent issues from the ACTION: Notice of intent to prepare an settlement agreement along with environmental impact statement. DATES: Comments concerning the scope of the analysis must be received by revisions to certain rotues as a result of SUMMARY: The Forest Service proposes September 8, 2016. The scoping the PSI’s Travel Analysis Process (TAP). to undertake motorized travel comment period commences on NOI Purpose and Need for Action management planning to designate publication date and continues for 45 The action’s purpose and need is to roads, trails, and areas open to public days thereafter. The draft environmental improve management of motor vehicle motorized vehicle use on the six impact statement is expected in early spring of 2018 and the final use via evaluation of motorized route districts of the Pike and San Isabel designations on National Forest System National Forests (PSI), pursuant to 36 environmental impact statement is expected in early 2019. (NFS) lands within the PSI in CFR part 212, subpart B. The proposed compliance with 36 CFR parts 212, 251, ADDRESSES: Written comments road and trail environmental impact 261, and 295, and all other applicable concerning this notice should be statement (EIS) evaluation and record of laws. The action also needs to consider addressed to Travel Management, Pike/ decision (ROD) will determine which effects on resources with the objective of San Isabel National Forests, 2840 roads and trails will be designated or re- minimizing the impacts resulting from Kachina Dr., Pueblo, CO 81008. designated for public motorized use and the designated motorized trails and Comments may also be sent via email to published on future motor vehicle use areas pursuant to 36 CFR 212.55(b), and [email protected], or maps (MVUMs), as described in subpart to analyze the environmental impacts of via facsimile to 719–553–1440, with B of the Travel Management Final Rule, all motorized routes proposed for ‘‘PSI Travel Management’’ in the subject dated November 9, 2005. The PSI’s designation, including routes in the line. Comments must be readable in MVUMs display all roads and motorized baseline contested by the Plaintiffs as Microsoft Word, rich text or pdf formats. trails open to the public for motorized identified in the settlement agreement. use. This action is in direct response to All comments, including names and addresses when provided, are placed in The designation of roads and trails must the PSI MVUM settlement agreement balance the needs of the broad range of (hereafter referred to as the settlement the record and will be available for public inspection and copying. The recreationalists and other legitimate agreement), which is the culmination of users of the national forests with the public may inspect comments after they a multi-year lawsuit brought against the need to protect natural and cultural are received and summarized at the Forest Service by The Wilderness resources. Society, Quiet Use Coalition, Wildlands travel planning Web page at: CPR, Center for Native Ecosystems and www.psitravelmanagement.org. Proposed Action Great Old Broads for Wilderness. The FOR FURTHER INFORMATION CONTACT: John In accordance with 36 CFR part 212, Cimarron and Comanche National Dow, Forest Planner at 719–553–1476. the proposed action will analyze current Grasslands, which are administered in Individuals who use telecommunication designated motorized roads and trails, conjunction with the Pike and San devices for the deaf (TDD) may call the minus certain specific routes described Isabel National Forests, will not be Federal Information Relay Service in the settlement agreement. The included in this EIS. (FIRS) at 1–800–877–8339 between 8 proposed action will also analyze some Scoping Process: Scoping is an a.m. and 8 p.m., Eastern Time, Monday priority proposed changes to the ongoing process used to identify through Friday. transportation system, including the important issues and determine the SUPPLEMENTARY INFORMATION: inclusion of some current Forest Order extent of analysis necessary for an transportation prohibitions associated informed decision on a proposed action. Background with roads and trails on NFS lands, and This Notice of Intent (NOI) serves as The current PSI Land and Resource including appropriate road and trail formal initiation of the scoping process. Management Plan (Forest Plan) dates seasonal restrictions within the PSI.
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These analyses could result in changes but would not be limited to: and Cimarron and Comanche National to the existing transportation system on decommissioning and/or conversion of Grasslands Resource Management Plan the PSI. Depending on the analyses of unneeded authorized routes, (PSICC RMP)? roads and motorized trails, i.e., which elimination of mixed use modes of • If the proposal is not consistent roads and trails are designated as open travel on certain roads, seasonal with the PSICC RMP, what is the scope to the public, it may be necessary to closures, road/trail reroutes, and scale of any required amendments? amend the Forest Plan. construction of new motorized • What alternative or combination of Per the settlement agreement dated recreational trails and/or extensions to alternatives ensures the PSI follows the November 16, 2015, the PSI existing trails, downgrading of requirements for multiple uses outlined transportation system that is open to maintenance levels, and other such in the Multiple Use Sustained Yield Act public motorized travel consists of a revisions necessary for the effective of 1960. • total of 2,004 miles of NFS roads and management of the NFS transportation What alternative or combination of 507 miles of NFS trails. That November network. The goal of this alternative alternatives best represents the 16, 2015 system is documented through would be to move toward a safe, designated motorized roads and trails USFS databases, spreadsheets, and affordable, and environmentally sound network taking into consideration the reports, along with spatial data, and can transportation system, while leaving travel management rule motorized trails be accessed from the travel planning room for future site-specific revisions as and road designation criterion outlined Web page at: psitravelmanagement.org. needed. in 36 CFR 212.55. Alternative D: This Alternative would Preliminary Issues Possible Alternatives consist of all the Alternative C revisions, Four preliminary alternatives have plus additional, non-urgent changes, Preliminary issues identified by the been identified and are described briefly which would direct the PSI toward the PSI are: (1) Resource damage caused by user- below. minimum NFS network needed for safe Alternative A: The No-Action created (non-NFS) routes; and efficient travel, and for (2) Potential lost recreational Alternative, as per settlement agreement administration, utilization, and opportunities from route closures; language, would consist of the public protection of NFS lands per 36 CFR (3) Safety concerns on mixed-use motorized routes depicted on the 212.5(b)(1). The additional changes (highway legal and non-highway legal) following MVUMs minus 30 NFS would be made in accordance with the routes. routes/route segments identified in the opportunities and recommendations settlement agreement, that are either provided in the TAP Addendum Dated: July 8, 2016. already decommissioned or would be Reports for the individual districts on Erin Connelly, temporarily changed to administrative the PSI. Forest and Grasslands Supervisor, Pike and use only during the interim EIS process: San Isabel National Forests and Cimarron • 2010 Pikes Peak Ranger District Responsible Official and Comanche National Grasslands. MVUM The Responsible Official is Erin [FR Doc. 2016–17498 Filed 7–22–16; 8:45 am] • 2010 South Park Ranger District Connelly, Forest and Grasslands BILLING CODE 3411–15–P MVUM Supervisor, Pike and San Isabel • 2010 Salida Ranger District MVUM National Forests and Cimarron and • 2012 Leadville Ranger District Comanche National Grasslands, 2840 DEPARTMENT OF AGRICULTURE MVUM Kachina Dr., Pueblo CO. 81008. • 2012 San Carlos Ranger District Forest Service MVUM Scoping Process North Gifford Pinchot Resource • 2013 South Platte Ranger District The Forest Service will conduct Advisory Committee MVUM scoping meetings to solicit comments Alternative B: This Alternative would from the public and interested parties AGENCY: Forest Service, USDA. consist of the public motorized routes as on this proposed action. ACTION: Notice of meeting. they are currently recorded in the Meetings are currently scheduled official Forest Service Infrastructure from 5:00 p.m. to 7:00 p.m. at the SUMMARY: The North Gifford Pinchot (INFRA) database, as of June 16, 2016, following locations and dates: Resource Advisory Committee (RAC) minus routes contested by the Plaintiffs Pueblo, CO—August 23, 2016: Pueblo will meet in Salkum, Washington. The and identified in the settlement Community College, Fortino Ballroom committee is authorized under the agreement. (2nd floor of student center), 900 West Secure Rural Schools and Community Alternative C: This Alternative would Orman Avenue, Pueblo, CO 81004. Self-Determination Act (the Act) and consitutue the routes as they are Salida, CO—August 24, 2016: Steam operates in compliance with the Federal currently recorded in the official Forest Plant Theatre and Event Center Advisory Committee Act. The purpose Service INFRA database, as of June 16, Ballroom, 220 West Sackett Street, of the committee is to improve 2016, plus certain revisions to those Salida, CO 81201. collaborative relationships and to roads that were considered as urgent, Colorado Springs, CO—August 25, 2016: provide advice and recommendations to priority changes, in conformance with Colorado Springs Utilities, Pikes Peak the Forest Service concerning projects the results of the PSI’s TAP Addendum Room, Leon Young Service Center, and funding consistent with Title II of Reports. Over the course of the last three 1521 S. Hancock Expressway, the Act. RAC information can be found years, PSI resource specialists Colorado Springs, CO 80903. at the following Web site: http:// conducted TAPs covering each ranger Additional information will be posted www.fs.usda.gov/main/giffordpinchot/ district. A TAP is a process whereby on the travel planning Web page at: workingtogether/advisorycommittees. personnel representing key resource psitravelmanagement.org. DATES: The meeting will be held on areas assign benefit and risk ratings to Tuesday, August 16, 2016, from 10:00 each road. The results of each TAP were Nature of Decisions To Be Made a.m. to 4:00 p.m. compiled in a TAP Addendum Report. • Is the proposal consistent with the All RAC meetings are subject to Urgent, priority changes may include, Pike and San Isabel National Forests cancellation. For status of meeting prior
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to attendance, please contact the person Dated: July 18, 2016. DEPARTMENT OF AGRICULTURE listed under FOR FURTHER INFORMATION Gina Owens, CONTACT. Forest Supervisor. Rural Business-Cooperative Service ADDRESSES: The meeting will be held at [FR Doc. 2016–17496 Filed 7–22–16; 8:45 am] Notice of Solicitation of Applications the Salkum Timberland Library, BILLING CODE 3411–15–P for the Biorefinery, Renewable Community Room, 2480 U.S. Highway Chemical, and Biobased Product 12, Salkum, Washington. Manufacturing Assistance Program Written comments may be submitted DEPARTMENT OF AGRICULTURE as described under SUPPLEMENTARY AGENCY: Rural Business-Cooperative INFORMATION. All comments, including Office of Procurement and Property Service, USDA. names and addresses when provided, Management ACTION: Notice. are placed in the record and are Public Availability of FY 2015 Service available for public inspection and SUMMARY: This Notice announces the copying. The public may inspect Contract Inventories solicitation of applications for funds comments received at Gifford Pinchot available under the Biorefinery, AGENCY: Office of Procurement and National Forest Supervisor’s Office. Renewable Chemical, and Biobased Please call ahead to facilitate entry into Property Management, Departmental Product Manufacturing Assistance the building. Management, Department of Program (the Program) to provide Agriculture. guaranteed loans to fund the FOR FURTHER INFORMATION CONTACT: Gala development, construction, and ACTION: Notice of public availability of Miller, RAC Coordinator, by phone at Retrofitting of commercial scale FY 2015 Services Contracts Inventories. 360–891–5014 or via email at biorefineries using Eligible technology [email protected]. and of Biobased product manufacturing Individuals who use SUMMARY: In accordance with Section facilities that use technologically new telecommunication devices for the deaf 743 of Division C of the Consolidated commercial scale processing and (TDD) may call the Federal Information Appropriations Act of 2010 (Pub. L. manufacturing equipment to convert Relay Service (FIRS) at 1–800–877–8339 111–117), Department of Agriculture is Renewable chemicals and other between 8:00 a.m. and 8:00 p.m., publishing this notice to advise the biobased outputs of biorefineries into Eastern Standard Time, Monday public of the availability of the FY 2015 end-user products, on a commercial through Friday. Services Contracts Inventory. This scale. inventory provides information on FY SUPPLEMENTARY INFORMATION: The DATES: With this Notice, the Agency is 2015 service contract actions over purpose of the meeting is to: announcing two separate application 1. Elect the Chair and Vice Chair of $25,000. The information is organized cycles, as is provided which are the RAC, by function to show how contracted established in accordance with 7 CFR 2. Review submitted Title II project resources are distributed throughout the 4279.260(b), with application closing proposals, and agency. The inventory has been dates of 4:30 p.m. Eastern Daylight 3. Make project recommendations for developed in accordance with guidance Time, October 3, 2016, and 4:30 p.m. Title II funding. issued on November 5, 2010, by the Eastern Daylight Time, April 3, 2017. The meeting is open to the public. Office of Management and Budget’s Applications must be received in the The agenda will include time for people Office of Federal Procurement Policy USDA Rural Business-Cooperative to make oral statements of three minutes (OFPP). OFPP’s guidance is available at Service, Energy Division no later than or less. Individuals wishing to make an http://www.whitehouse.gov/sites/ 4:30 p.m. Eastern Daylight Time of the oral statement should request in writing default/files/omb/procurement/memo/ application closing date to compete for by August 10, 2016, to be scheduled on service-contract-inventories-guidance- program funds. Any application the agenda. Anyone who would like to 11052010.pdf. received after 4:30 p.m. Eastern Daylight bring related matters to the attention of The Department of Agriculture has Time of the application closing date will the committee may file written posted its inventory and a summary of be considered for the subsequent statements with the committee staff the inventory on the Office of application cycle, provided that funding before or after the meeting. Written Procurement and Property Management is available. comments and requests for time for oral homepage at the following link: http:// ADDRESSES: Applications and forms may comments must be sent to Gala Miller, www.dm.usda.gov/procurement/. be obtained from: RAC Coordinator, 10600 NE 51st Circle, • USDA, Rural Business-Cooperative Vancouver, Washingtonn 98682; by FOR FURTHER INFORMATION CONTACT: Service, Energy Division, Attention: email to [email protected], or via Crandall Watson, Office of Procurement Biorefinery, Renewable Chemical, and facsimile to 360 891 5045. and Property Management, at (202) 720– Biobased Product Manufacturing Meeting Accommodations: If you are 7529, or by mail at OPPM, MAIL STOP Assistance Program, 1400 Independence a person requiring reasonable 9304, U.S. Department of Agriculture, Avenue SW., STOP 3225, Washington, accommodation, please make requests 1400 Independence Avenue SW., DC 20250–3225. in advance for sign language Washington, DC 20250–9303. Please cite • Agency Web site: http:// interpreting, assistive listening devices, ‘‘2015 Service Contract Inventory’’ in all forms.sc.egov.usda.gov/eForms/ or other reasonable accommodation. For correspondence. welcomeAction.do?Home. Follow the access to the facility or proceedings, instructions for obtaining the please contact the person listed in the Lisa M. Wilusz, application and forms. Application section titled FOR FURTHER INFORMATION Director, Office of Procurement and Property materials can also be obtained from the CONTACT. All reasonable Management. Agency’s Web site. http:// accommodation requests are managed [FR Doc. 2016–17499 Filed 7–22–16; 8:45 am] www.rd.usda.gov/programs-services/ on a case by case basis. BILLING CODE 3410–TX–P biorefinery-assistance-program.
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FOR FURTHER INFORMATION CONTACT: and of Biobased product manufacturing D. Application Completeness. Todd Hubbell, Rural Business- facilities that use technologically new Incomplete Phase 1 applications will be Cooperative Service, Energy Division, commercial scale processing and rejected and the Project will be given no Biorefinery, Renewable Chemical, and manufacturing equipment and required further consideration. Lenders will be Biobased Product Manufacturing facilities to convert Renewable informed of the element(s) that made Assistance Program, USDA, 1400 chemicals and other biobased outputs of the application incomplete. If the Independence Avenue SW., Mail Stop biorefineries into end-user products on Lender makes the required edits and 3225, Washington, DC 20250–3225. a commercial scale. resubmits the application to the USDA’s Telephone: 202–690–2516. Email: B. Statutory Authority. This Program Rural Business-Cooperative Service, [email protected]. is authorized under 7 U.S.C. 8103. Energy Division by 4:30 p.m. Eastern SUPPLEMENTARY INFORMATION: Regulations are contained in 7 CFR part Daylight Time, on the application 4279, subpart C and in 7 CFR part 4287, closing date, the Agency will reconsider Paperwork Reduction Act subpart D. the application. C. Definition of Terms. The In accordance with the Paperwork IV. Application Submission Reduction Act of 1995, the information definitions applicable to this Notice are Information collection requirements associated with published at 7 CFR 4279.202 and 7 CFR the Program, as covered in this Notice, 4287.302. A. Letter of Intent. For each guarantee have been approved by the Office of C. Application awards. The Agency request, the Lender or the Borrower Management Budget (OMB) under OMB will review, evaluate, score, and award must submit to the Agency a non- Control Number 0570–0065. applications received in response to this binding letter of intent to apply for a Notice based on the provisions found in loan guarantee, not less than 30 Overview 7 CFR part 4279, subpart C and as calendar days prior to the application Federal Agency Name: Rural indicated in this Notice. deadline. The letter of intent due date Business-Cooperative Service (an is September 6, 2016 for the October 3, Agency of USDA in the Rural II. Award Information 2016 application cycle and March 6, Development mission area). A. Available funds. This Notice is a 2017 for the April 3, 2017 cycle. The Solicitation Opportunity Title: solicitation for applications that will be letter must identify the Borrower, the Biorefinery, Renewable Chemical, and funded using budget authority provided Lender and any Project sponsors; Biobased Product Manufacturing by the Agricultural Act of 2014 (2014 describe the Project and Project Assistance Program. Farm Bill). The 2014 Farm Bill location; describe the proposed Announcement Type: Notice of authorized mandatory funding in each feedstock, primary technologies of the Solicitation of Applications. of fiscal years 2014, 2015 and 2016. Of facility, and primary products Catalog of Federal Domestic the funds available, the 2014 Farm Bill produced; estimate the Total Project Assistance (CFDA) Number: The CFDA provided for up to 15 percent of the Cost and amount of loan requested; and number for this Notice is 10.865. mandatory funds for only fiscal years identify the application cycle due date. Dates: Applications must be received 2014 and 2015 to promote Biobased The Agency reserves the right to request in the USDA Rural Business- product manufacturing. additional information from potential Cooperative Service, Energy Division no B. Type of Award. Guaranteed loan. applicants. Applications that do not later than the application closing dates C. Approximate Number of Awards. submit a letter of intent by 30 days prior of 4:30 p.m. Eastern Daylight Time, Subject to the amount of funding to the application closing date will not October 3, 2016, and 4:30 p.m. Eastern available. be accepted by the Agency in that Daylight Time, April 3, 2017. Any D. Guarantee Loan Funding. The particular application cycle. application received after 4:30 p.m. provisions of 7 CFR 4279.232 apply to B. Application Submittal. For each Eastern Daylight Time of the application this Notice. The Borrower needs to guarantee request, the Lender must closing date will be considered for the provide the remaining funds from other submit to the Agency an application subsequent application cycle, provided non-Federal sources to complete the that is in conformance with 7 CFR that funding is available. Project. 4279.261. The content and methods of Availability of Notice and Rule: This E. Guarantee and Annual Renewal application submittal are specified Notice and the interim rule for the Fees. The guarantee and Annual below. Additionally, the Agency has Program are available on the USDA Renewal Fees specified in 7 CFR developed an Application Guide that Rural Development Web site at: http:// 4279.231 are applicable to this Notice. explains the application procedures and www.rd.usda.gov/programs-services/ F. Anticipated Award Date. The details the process for submission of an biorefinery-assistance-program and at award date will vary based on timing of application. This guide is located at http://www.rd.usda.gov/newsroom. completion of each Project’s individual http://www.rd.usda.gov/files/RBS_ application process. Section9003Biorefinery_ I. Funding Opportunity Description ApplicationGuide.pdf. A. Purpose of the Program. The III. Eligibility Information C. Content and Form of Submission. purpose of the Biorefinery, Renewable A. Eligible Lenders. To be eligible for All applicants must submit one paper Chemical, and Biobased Product this Program, Lenders must meet the copy of the application materials and an Manufacturing Program is to assist in eligibility requirements in 7 CFR electronic copy containing the same the development of new and emerging 4279.208. information that is included in the technologies for the development of B. Eligible Borrowers. To be eligible paper copy. Detailed instructions Advanced biofuels, Renewable for this Program, Borrowers must meet regarding application submission are chemicals, and Biobased product the eligibility requirements in 7 CFR explained in the Application Guide that manufacturing. This is achieved through 4279.209. the Agency has developed. The guarantees for loans made to fund the C. Eligible Projects. To be eligible for Application Guide is available online on development, construction, and this Program, projects must meet the the ‘‘Forms and Resources’’ page at Retrofitting of Commercial scale eligibility requirements in 7 CFR http://www.rd.usda.gov/programs- Biorefineries using Eligible technology 4279.210. services/biorefinery-assistance-program
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or by contacting Todd Hubbell, definition requires that the Biobased manufactured Biobased product, 6 Telephone: 202–690–2516. Email: product manufacturing facility use points will be awarded. [email protected]. Renewable chemicals and other (ii) If the Borrower has signed letters Application materials should be biobased outputs of biorefineries as of intent to enter into contracted sales submitted to USDA Rural Business- inputs and also requires that the agreements, or comparable Cooperative Service, Energy Division, Borrower use technologically new documentation, for the purchase for Attention: Biorefinery, Renewable commercial scale processing and greater than 50 percent of the dollar Chemical, and Biobased Product manufacturing equipment and required value of the manufactured Biobased Manufacturing Assistance Program, facilities. The facility must produce product, or combination of signed 1400 Independence Avenue SW., STOP end-user products. contracts or agreements and letters of 3225, Washington, DC 20250–3225. intent or comparable documentation, 4 The Agency’s application process is VI. Biobased Product Manufacturing points will be awarded. divided into two phases. Phase 1 Eligibility Information (iii) If the Borrower has signed letters applications will provide information The eligibility requirements for of interest to enter into contracted sales needed to determine Lender, Borrower, prospective Lenders and Borrowers will agreements, or comparable and Project eligibility; preliminary not change from those listed above for documentation, for the purchase for economic and technical feasibility; and the Program, generally. For Biobased greater than 50 percent of the dollar the priority score of the application. product manufacturing Projects, the value of the manufactured Biobased Based on the priority score ranking, the Eligible Project requirement is modified product, or combination of signed Agency will invite applicants whose to reflect that eligible Projects will use contracts, letters of intent or comparable Phase 1 applications receive higher technologically new commercial scale documentation, 2 points will be priority scores to submit Phase 2 processing and manufacturing awarded. applications. Phase 2 application equipment and required facilities to (2) Duration of contracted sales materials will be submitted as the convert Renewable chemicals and other agreements. A maximum of 6 points Project planning and engineering are biobased outputs of biorefineries into will be awarded. finalized and will include information end-user products on a commercial (i) If the Borrower commits to enter such as: Environmental compliance scale. into contracted sales agreements prior to information, technical report, financial Additionally, for purposes of loan closing for purchase for greater model, and the Lender’s credit Biobased product manufacturing than or equal to 50 percent of the dollar evaluation. Phase 1 applications must Projects, only for purposes of technical value of manufactured Biobased product contain the information required in the review, technical reports need to for the period not less than the loan Agency’s Application Guide and in address only the technologically new term, 6 points will be awarded. (ii) If the Borrower commits to enter accordance with 7 CFR 4279.261. commercial scale processing and D. Local Owner. For applications into contracted sales agreements prior to manufacturing equipment and required submitted under this Notice, when the loan closing for purchase for greater facilities. majority of feedstock to be utilized by than or equal to 50 percent of the dollar the Project on an annual basis is VII. Biobased Product Manufacturing value of the manufactured Biobased harvested from the land, the term ‘‘local Application Processing Procedures product for the period not less than 5 owner’’ is defined as an individual who years but less than the term of the loan, The application processing owns any portion of an eligible 4 points will be awarded. procedures will remain the same for Biorefinery and whose primary (iii) If the Borrower commits to enter Biobased product manufacturing residence is located within the into contracted sales agreements prior to geographic area that the Biorefinery’s projects as for the projects described loan closing for purchase for greater feedstock originates. In all other cases, above. than or equal to 50 percent of the dollar ‘‘local owner’’ is defined as an For applications submitted under this value of the manufactured Biobased individual who owns any portion of an Notice, ‘‘local owner’’ is defined as an product for the period not less than 1 eligible Biorefinery and whose primary individual who owns any portion of an year but less than 5 years, 2 points will residence is located within 100 miles of eligible Biorefinery and whose primary be awarded. the Biorefinery. residence is located within 100 miles of (3) Financial strength of the the Biorefinery. contracted sales agreement V. Biobased Product Manufacturing VIII. Biobased Product Manufacturing counterparty. A maximum of 4 points This notice also includes the Scoring will be awarded. solicitation of applications for funds (i) If the Borrower commits to enter available under the Biorefinery, In lieu of the criteria listed in 7 CFR into contracted sales agreements prior to Renewable Chemical, and Biobased 4279.266, Biobased product loan closing for purchase for greater Product Manufacturing Assistance manufacturing Projects will be scored than or equal to 50 percent of the dollar Program to specifically fund Biobased using the criteria listed below: value of the manufactured Biobased product manufacturing. The 2014 Farm (a) Whether the Borrower has product with a counterparty with a Bill added Biobased product established a market for the corporate credit rating not less than AA, manufacturing to the Program and manufactured Biobased product, as Aa2, or equivalent, 4 points will be provided for up to 15 percent of the applicable. A maximum of 16 points can awarded. mandatory funds for fiscal years 2014 be awarded. Points to be awarded will (ii) If the Borrower commits to enter and 2015 to be used to support facilities be determined as follows: into contracted sales agreements prior to producing Biobased products for end (1) Degree of commitment of loan closing for purchase for greater use. The 2014 Farm Bill provides the contracted sales agreements. A than or equal to 50 percent of the dollar definition of ‘‘Biobased product maximum of 6 points will be awarded. value of the manufactured Biobased manufacturing,’’ which the Agency has (i) If the Borrower has signed product with a counterparty with a incorporated into the subsequent contracts for purchase for greater than corporate credit rating less than AA, interim rule (see 7 CFR 4279.202). This 50 percent of the dollar value of Aa2, or equivalent, but not less than
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A¥, or A3, or equivalent, 2 points will used by the proposed Project will be negative impacts on existing be awarded. supplied by producer associations and manufacturing plants or other facilities (iii) If the Borrower commits to enter cooperatives or biorefineries supplied that use Renewable chemicals and other into contracted sales agreements prior to by producer associations and biobased outputs of biorefineries. A loan closing for purchase for greater cooperatives, 3 points will be awarded. maximum of 5 points can be awarded. than or equal to 50 percent of the dollar (e) The level of financial participation Points to be awarded will be determined value of the manufactured Biobased by the Borrower, including support from as follows: product with a counterparty with a non-Federal Government sources and (1) If the Borrower has failed to corporate credit rating less than A¥, or private sources. A maximum of 20 establish, through an independent third- A3, or equivalent, but not less than points can be awarded. Points to be party Feasibility study, that the BBB¥, or Baa3, or equivalent, 1 point awarded will be determined as follows: production technology proposed in the will be awarded. (1) If the sum of the loan amount application, if adopted, will not have (b) Whether the area in which the requested and other direct Federal any economically significant negative Borrower proposes to place the Project, funding is less than or equal to 50 impacts on existing manufacturing defined as the area that will supply the percent of total Eligible project costs, 20 plants or other facilities that use similar Renewable chemicals and other points will be awarded. Renewable chemicals and other biobased outputs of biorefineries to the (2) If the sum of the loan amount biobased outputs of biorefineries, 0 proposed Project, has any other similar requested and other direct Federal points will be awarded. facilities. A maximum of 5 points can be funding is greater than 50 percent but (2) If the Borrower has established, awarded. Points to be awarded will be less than or equal to 55 percent of total through an independent third-party determined as follows: Eligible project costs, 16 points will be Feasibility study, that the production (1) If the area that will supply the awarded. technology proposed in the application, Renewable chemicals and other (3) If the sum of the loan amount if adopted, will not have any biobased outputs of biorefineries to the requested and other direct Federal economically significant negative proposed Project does not have any funding is greater than 55 percent but impacts on existing manufacturing other similar facilities, 5 points will be less than or equal to 60 percent of total plants or other facilities that use awarded. Eligible project costs, 12 points will be Renewable chemicals and other (2) If there are other similar facilities awarded. biobased outputs of biorefineries, 5 located within the area that will supply (4) If the sum of the loan amount and points will be awarded. the renewable chemicals and other other direct Federal funding is greater (h) The potential for rural economic biobased outputs of biorefineries to the than 60 percent but less than or equal development. A maximum of 10 points proposed Project, 0 points will be to 65 percent of total Eligible project can be awarded. Points to be awarded awarded. costs, 8 points will be awarded. will be determined as follows: (c) Whether the Borrower is proposing (5) If the sum of the loan amount and (1) If the Project is located in a Rural to use Renewable chemicals and other other direct Federal funding is greater Area, 5 points will be awarded. biobased outputs of biorefineries not than 65 percent but less than or equal (2) If the Project creates jobs through previously used in the Biobased product to 70 percent of total Eligible project direct employment with an average manufacturing. A maximum of 10 costs, 4 points will be awarded. wage that exceeds the county median points can be awarded. Points to be (f) Whether the Borrower has household wages where the Project will awarded will be determined as follows: established that the adoption of the be located, 5 points will be awarded. (1) If the Borrower proposes to use manufacturing process proposed in the (i) The level of local ownership of the Renewable chemicals and other application will have a positive effect facility proposed in the application. For biobased outputs of biorefineries on three impact areas: resource the purposes of this Notice, a Local previously used in the manufacture of a conservation (e.g., water, soil, forest), owner is defined as ‘‘An individual who Biobased product in a commercial public health (e.g., potable water, air owns any portion of an eligible facility, 0 points will be awarded. quality), and the environment (e.g., Advanced biofuel Biorefinery and (2) If the Borrower proposes to use compliance with an applicable whose primary residence is located Renewable chemicals and other renewable fuel standard, greenhouse within 100 miles of the Biorefinery.’’ A biobased outputs of biorefineries not gases, emissions, particulate matter). A maximum of 5 points can be awarded. previously used in the manufacture of a maximum of 10 points can be awarded. Points to be awarded will be determined Biobased product in a commercial Based on what the Borrower has as follows: facility, 10 points will be awarded. provided in either the application or the (1) If Local owners have an ownership (d) Whether the Borrower is Feasibility study, points to be awarded interest in the facility of more than 20 proposing to work with producer will be determined as follows: percent but less than or equal to 50 associations or cooperatives. A (1) If process adoption will have a percent, 3 points will be awarded. maximum of 5 points can be awarded. positive impact on any one of the three (2) If Local owners have an ownership Points to be awarded will be determined impact areas (resource conservation, interest in the facility of more than 50 as follows: public health, or the environment), 3 percent, 5 points will be awarded. (1) If at least 50 percent of the dollar points will be awarded. (j) Whether the Project can be value of Renewable chemicals and other (2) If process adoption will have a replicated. A maximum of 10 points can biobased outputs of biorefineries to be positive impact on two of the three be awarded. Points to be awarded will used by the proposed Project will be impact areas, 6 points will be awarded. be determined as follows: supplied by producer associations and (3) If process adoption will have a (1) If the Project can be commercially cooperatives or biorefineries supplied positive impact on all three impact replicated regionally (e.g., Northeast, by producer associations and areas, 10 points will be awarded. Southwest, etc.), 5 points will be cooperatives, 5 points will be awarded. (g) Whether the Borrower can awarded. (2) If at least 30 percent of the dollar establish that, if adopted, the technology (2) If the Project can be commercially value of Renewable chemicals and other proposed in the application will not replicated nationally, 10 points will be biobased outputs of biorefineries to be have any economically significant awarded.
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(k) If the Project uses a particular has an active Federal award or an bases will apply to all programs and/or technology, system, or process that is application under consideration by the employment activities.) not currently operating at commercial Agency. Applicants must provide a If you wish to file a Civil Rights scale as of October 1 of the fiscal year DUNS number for each application program complaint of discrimination, for which the funding is available; submitted to the Agency. complete the USDA Program October 1, 2016, 5 points will be Discrimination Complaint Form (PDF), X. Administration Information awarded. found online at http:// (l) The Administrator can award up to A. Notifications. The Agency will www.ascr.usda.gov/complaint_filing_ a maximum of 10 bonus points: notify, in writing, Lenders whose Phase cust.html, or at any USDA office, or call (1) To ensure, to the extent practical, 1 applications have scored highest and (866) 632–9992 to request the form. You there is diversity in the types of Projects will invite them to submit Phase 2 may also write a letter containing all of approved for loan guarantees to ensure applications. If the Agency determines it the information requested in the form. as wide a range as possible technologies, is unable to guarantee any particular Send your completed complaint form or products, and approaches are assisted in loan, the Lender will be informed in letter to us by mail at U.S. Department the program portfolio; and writing. Such notification will include of Agriculture, Director, Office of (2) To applications that promote the reason(s) for denial of the guarantee. Adjudication, 1400 Independence partnerships and other activities that B. Administrative and National Policy Avenue SW., Washington, DC 20250– assist in the development of new and Requirements. 9410, by fax (202) 690–7442 or email at emerging technologies for the 1. Review or Appeal Rights. A person [email protected]. development of Renewable chemicals may seek a review of an Agency Individuals who are deaf, hard of and other biobased outputs of decision or appeal to the National hearing or have speech disabilities and biorefineries, so as to, as applicable, Appeals Division in accordance with 7 you wish to file either an EEO or promote resource conservation, public CFR 4279.204. program complaint please contact health, and the environment; diversify 2. Exception Authority. The USDA through the Federal Relay markets for agricultural and forestry provisions specified in 7 CFR 4279.203 Service at (800) 877–8339 or (800) 845– products and agriculture waste material; and 7 CFR 4287.303 apply to this 6136 (in Spanish). and create jobs and enhance the Notice. Persons with disabilities, who wish to economic development of the rural C. Environmental Review. The Agency file a program complaint, please see economy. No additional information will review all applicant proposals that information above on how to contact us regarding partnerships is detailed in this may qualify for assistance under this by mail directly or by email. If you Notice. section in accordance with 7 CFR part require alternative means of 1970, Environmental Policies and communication for program information IX. General Program Information Procedures. The environmental review (e.g., Braille, large print, audiotape, etc.) A. Loan Origination. Lenders seeking for projects that score high enough will please contact USDA’s TARGET Center a loan guarantee under this Notice must be submitted during the Phase 2 at (202) 720–2600 (voice and TDD). comply with all of the provisions found application process and must be in 7 CFR 4279, subpart C. conducted in accordance with 7 CFR Dated: July 18, 2016. B. Loan Processing. The Agency will part 1970, Environmental Policies and Samuel H. Rikkers, process loans guaranteed under this Procedures. Administrator, Rural Business-Cooperative Notice in accordance with the Service. provisions specified in 7 CFR 4279.260 XI. Agency Contacts [FR Doc. 2016–17486 Filed 7–22–16; 8:45 am] through 4279.290. For general questions about this BILLING CODE 3410–XY–P C. Evaluation of Applications and Notice, please contact Todd Hubbell, Awards. Awards under this Notice will Rural Business–Cooperative Service, be made on a competitive basis; Energy Division, Biorefinery, Renewable DEPARTMENT OF AGRICULTURE submission of an application neither Chemical, and Biobased Product reserves funding nor ensures funding. Manufacturing Assistance Program, U.S. Rural Business-Cooperative Service The Agency will evaluate each Department of Agriculture, 1400 Notice of Solicitation of Applications application received in the USDA Rural Independence Avenue SW., Mail Stop for the Repowering Assistance Business–Cooperative Service, Energy 3225, Washington, DC 20250–3225. Program Division, select Phase 1 applications in Telephone: 202–690–2516. Email: accordance with 7 CFR 4279.267 to [email protected]. AGENCY: Rural Business-Cooperative invite submittal of Phase 2 applications Service and Rural Utilities Service, Nondiscrimination Statement and will make awards using the USDA. provisions specified in 7 CFR 4279.278. The U.S. Department of Agriculture ACTION: Notice. D. Guaranteed Loan Servicing. The (USDA) prohibits discrimination against Agency will service loans guaranteed its customers, employees, and SUMMARY: This Notice announces the under this Notice in accordance with applicants for employment on the bases solicitation of applications for funds the provisions specified in 7 CFR of race, color, national origin, age, available under the Repowering 4287.301 through 4287.399. disability, sex, gender identity, religion, Assistance Program to encourage the use E. System for Award Management reprisal, and where applicable, political of renewable biomass as a replacement (SAM) and Dun and Bradstreet Data beliefs, marital status, familial or fuel source for fossil fuels used to Universal Numbering System (DUNS) parental status, sexual orientation, or all provide process heat or power in the Registration. Unless exempt under 2 or part of an individual’s income is operation of eligible biorefineries. To be CFR 25.110, the Applicant must be derived from any public assistance eligible for payments, biorefineries must registered in the SAM prior to program, or protected genetic have been in existence on or before June submitting an application and maintain information in employment or in any 18, 2008. an active SAM registration with current program or activity conducted or funded DATES: Applications will be accepted information at all times during which it by the Department. (Not all prohibited from July 25, 2016 through October 24,
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2016. Applications received after Repowering Assistance Program are permits and financing fees. Any project October 24, 2016, regardless of their available on the USDA Rural costs incurred by the applicant prior to postmark, will not receive Development Web site at http:// application for payment assistance consideration. If the actual deadline www.rd.usda.gov/programs-services/ under this Notice will be ineligible for falls on a weekend or a federally- repowering-assistance-program and at payment assistance. observed holiday, the deadline is the http://www.rd.usda.gov/newsroom. F. Type of Instrument. Payment next Federal business day. agreement. I. Funding Opportunity Description ADDRESSES: Applications and forms may III. Eligibility Information be obtained from: A. Purpose of the Program. The • USDA, Rural Business-Cooperative purpose of this program is to provide A. Eligible Applicants. Applicant Service, Energy Division, Attention: financial incentives to biorefineries in eligibility requirements are found in 7 Repowering Assistance Program, 1400 existence on or before June 18, 2008 (the CFR 4288.10. Among other things, to be Independence Avenue SW., Room date of the enactment of the Food, eligible for this program, an applicant 6901–S, STOP 3225, Washington, DC Conservation, and Energy Act of 2008) must be a biorefinery that has been in 20250–3225. to replace the use of fossil fuels used to existence on or before June 18, 2008, • Agency Web site: http:// produce heat or power at their facilities and will utilize renewable biomass to forms.sc.egov.usda.gov/eForms. Follow by installing new systems that use replace fossil fuel for repowering the instructions for obtaining the renewable biomass, or to produce new biorefinery. application and forms. Application energy from renewable biomass. B. Ineligible Projects. In accordance materials can also be obtained from the B. Statutory Authority. This Program with 7 CFR 4288.10(b), a project is not Agency’s Web site. http:// is authorized under 7 U.S.C. 8104. eligible under this Notice if it is using www.rd.usda.gov/programs-services/ Regulations are contained in 7 CFR part feedstocks for repowering that are feed repowering-assistance-program. 4288, subpart A and are incorporated by grain commodities that received benefits FOR FURTHER INFORMATION CONTACT: For reference. under Title I of the Food, Conservation, further information on this payment C. Definition of Terms. The and Energy Act of 2008. Projects that do program, please contact Fred Petok, definitions applicable to this Notice are not score at least 5 points under the 7 USDA, Rural Business-Cooperative published at 7 CFR 4288.2. CFR 4288.21(b) process, the minimum Service, Energy Division, 1400 D. Application Awards. The Agency number of points for cost-effectiveness Independence Avenue SW., Room will review, evaluate, and award and percentage of reduction of fossil 6901–S, STOP 3225, Washington, DC applications received in response to this fuel used, will be deemed ineligible. Notice based on the provisions found in 20250–3225. Telephone: 202–690–0784. IV. Multiple Submissions Email: [email protected]. 7 CFR part 4288, subpart A. In accordance with 7 CFR SUPPLEMENTARY INFORMATION: II. Award Information 4288.10(a)(2), corporations and entities Paperwork Reduction Act A. Available Funds. This Notice is a with more than one biorefinery can In accordance with the Paperwork solicitation for applications that will be submit an application for only one of Reduction Act of 1995, the information funded using budget authority provided their biorefineries. However, if a collection requirements associated with by the Agricultural Act of 2014 (Pub. L. corporation or entity has multiple the Section 9004 Repowering Assistance 113–79) and available under current biorefineries located at the same Program, as covered in this Notice, have law. location, the entity may submit an been approved by the Office of B. Number of Payments. The number application that covers such Management and Budget (OMB) under of payments will depend on the number biorefineries provided the heat and OMB Control Number 0570–0066. of participating biorefineries. power used in the multiple biorefineries C. Amount of Payments. The Agency are centrally produced. Overview will determine the amount of payments V. Scoring Advice Federal Agency Name: Rural to be made to a biorefinery in Business-Cooperative Service (an accordance with its regulations at 7 CFR A. Cost Effectiveness. To be eligible agency of the United States Department part 4288, subpart A, which take into and meet the minimum scoring criteria, of Agriculture (USDA) in the Rural consideration the percentage reduction the project must have a simple payback Development mission area). in fossil fuel used by the biorefinery period of no more than 10 years (i.e., Solicitation Opportunity Title: (including the quantity of fossil fuels a must be awarded at least five points for Repowering Assistance Program. renewable biomass system is replacing) cost-effectiveness under 7 CFR Announcement Type: Notification of and the cost and cost-effectiveness of 4288.21(b)(1)). Solicitation of Applications. the renewable biomass system. B. Percentage of Reduction of Fossil Catalog of Federal Domestic D. Payment Limitations. There is no Fuel Used. To be eligible and meet the Assistance (CFDA) Number. The CFDA minimum payment amount that an minimum scoring criteria, the applicant number for this Notice is 10.866. individual biorefinery can receive. The must demonstrate that the repowering Dates: To receive funding maximum amount an individual project has an anticipated annual consideration, applications must be biorefinery can receive under this reduction in fossil fuel use of at least 40 received in the USDA Rural Business- Notice is 50 percent of total eligible percent (i.e., the application must be Cooperative Service, Energy Division no project costs up to a maximum of $1 awarded at least five points for later than 4:30 p.m. Eastern Daylight million. percentage of reduction of fossil fuel Time on October 24, 2016. Any E. Project Costs. Eligible project costs, used under 7 CFR 4288.21(b)(2)). application received after 4:30 p.m. in accordance with 7 CFR 4288.11, will Eastern Daylight Time on October 24, be only for project related construction VI. Project Financing 2016, will not compete for funds costs for repowering improvements The applicant must demonstrate that announced in this Notice. associated with the equipment, it has sufficient funds or has obtained Availability of Notice and Rule. This installation, engineering, design, site commitments for sufficient funds to Notice and the interim rule for the plans, associated professional fees, complete the repowering project, taking
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into account the amount of the payment provide the applicant of the higher provisions of 7 CFR 4288.25 apply to request in the application. scoring application the opportunity to this Notice. reduce the amount of its payment VII. Application and Submission C. Environmental Review. All request to the amount of funds Information recipients under this Notice are subject available. If the applicant agrees to to the requirements of 7 CFR part 1970. A. To Request Applications. lower its payment request, it must Application forms are available from the certify that the purposes of the project X. Agency Contacts USDA Rural Development State Office, can be met, and the Agency must For further information about this State Energy Coordinator, and the determine the project is feasible at the Notice, please contact Fred Petok, Agency Web site found at http:// lower amount. USDA, Rural Business—Cooperative forms.sc.egov.usda.gov. Follow Service, Energy Division, 1400 instructions on the Agency Web site for IX. Administration Information Independence Avenue SW., Room 6868, obtaining the application and forms. A. Notice of Eligibility. The provisions STOP 3225, Washington, DC 20250– http://www.rd.usda.gov/programs- of 7 CFR 4288.23 apply to this Notice. 3225. Telephone: 202–690–0784. Email: services/repowering-assistance-program. These provisions include notifying an B. Content and Form of Submission. applicant determined to be eligible for [email protected]. Applicants must submit a signed participation and notifying an applicant XI. Nondiscrimination Statement original and one copy of an application determined to be ineligible, including containing all the information specified their application score and ranking and The U.S. Department of Agriculture in 7 CFR 4288.20(b) and (c). the score necessary to qualify for (USDA) prohibits discrimination against C. Submission Dates and Times. payments. its customers, employees, and Applications to participate in this B. Administrative and National Policy applicants for employment on the bases program must be submitted between Requirements. of race, color, national origin, age, July 25, 2016 and October 24, 2016. (1) Review or Appeal Rights. A person disability, sex, gender identity, religion, Applications received after 4:30 p.m. may seek a review of an Agency adverse reprisal, and where applicable, political Eastern Daylight Time October 24, 2016, decision or appeal to the National beliefs, marital status, familial or regardless of their postmark, will not be Appeals Division as provided in 7 CFR parental status, sexual orientation, or all considered by the Agency for funding 4288.3. or part of an individual’s income is consideration. (2) Compliance With Other Laws and derived from any public assistance D. Where to Submit. Applications Regulations. The provisions of 7 CFR program, or protected genetic shall be sent to the Repowering 4288.4 apply to this Notice, which information in employment or in any Assistance Program at 1400 includes requiring participating program or activity conducted or funded Independence Avenue SW., Room biorefineries to be in compliance with by the Department. (Not all prohibited 6901–S, Washington DC, 20150. Please other applicable Federal, State, and bases will apply to all programs and/or note that regular mail delivery, or local laws. employment activities.) courier delivery must be coordinated (3) Oversight and Monitoring. The If you wish to file a Civil Rights with the Agency in order for the provisions of 7 CFR 4288.5(a) and (b) program complaint of discrimination, proposal to be delivered by the date. apply to this Notice, which includes the complete the USDA Program right of the Agency to verify all payment Discrimination Complaint Form (PDF), VIII. Application Review and Selection applications and subsequent payments Information found online at http:// and the requirement that each www.ascr.usda.gov/complaint_filing_ The Agency will evaluate projects biorefinery must make available, at one cust.html, or at any USDA office, or call based on the cost, cost-effectiveness, place at all reasonable times for (866) 632–9992 to request the form. You and capacity of projects to reduce fossil examination by the Agency, all books, may also write a letter containing all of fuels used. documents, papers, receipts, payroll the information requested in the form. A. Review. The Agency will review records, and bills of sale adequate to Send your completed complaint form or applications submitted under this identify the purposes for which, and the letter to us by mail at U.S. Department Notice in accordance with 7 CFR manner in which, funds were expended of Agriculture, Director, Office of 4288.21(a). for all eligible project costs for a period Adjudication, 1400 Independence B. Scoring. The Agency will score of not less than 3 years from the final Avenue SW., Washington, DC 20250– applications submitted under this payment date. 9410, by fax (202) 690–7442 or email at Notice in accordance with 7 CFR (4) Reporting. Upon completion of the [email protected]. 4288.21(b). repowering project funded under this Individuals who are deaf, hard of C. Ranking and Selecting Notice, the biorefinery must submit a hearing or have speech disabilities and Applications. The Agency will consider report, in accordance with 7 CFR you wish to file either an EEO or the score an application has received 4288.5(c), to the Agency annually for program complaint please contact compared to the scores of other the first 3 years after completion of the USDA through the Federal Relay applications, with higher scoring project. The reports are to be submitted Service at (800) 877–8339 or (800) 845– applications receiving first as of October 1 of each year. consideration for payments. Using the (5) Payment Provisions. Fiscal Year 6136 (in Spanish). application scoring criteria point values (FY) 2016 payments will be made Persons with disabilities, who wish to specified in 7 CFR 4288.21, the Agency according to the provisions specified in file a program complaint, please see will select applications for payments. 7 CFR 4288.13(b) and (c) and in 7 CFR information above on how to contact us D. Availability of Funds. As 4288.24. by mail directly or by email. If you applications are funded, if insufficient (6) Exception Authority. The require alternative means of funds remain to pay the next highest provisions of 7 CFR 4288.7 apply to this communication for program information scoring application, the Agency may Notice. (e.g., Braille, large print, audiotape, etc.) elect to pay a lower scoring application. (7) Succession and Control of please contact USDA’s TARGET Center Before this occurs, the Agency will Facilities and Production. The at (202) 720–2600 (voice and TDD).
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Dated: July 18, 2016. part, if the party that requested a review SUMMARY: On June 24, 2016, the Samuel H. Rikkers, withdraws its request within 90 days of Department of Commerce Administrator, Rural Business-Cooperative the date of publication of notice of (‘‘Department’’) published in the Service. initiation of the requested review. In Federal Register the Preliminary [FR Doc. 2016–17485 Filed 7–22–16; 8:45 am] this case, WTTC withdrew its request Determination of the countervailing BILLING CODE 3410–XY–P for review within the 90-day deadline, duty (‘‘CVD’’) investigation on certain and no other party requested an biaxial integral geogrid products administrative review of the CVD order. (‘‘geogrids’’) from the People’s Republic DEPARTMENT OF COMMERCE Therefore, in accordance with 19 CFR of China (‘‘PRC’’). The Department is 351.213(d)(1), we are rescinding this amending the Preliminary International Trade Administration review in its entirety. Determination of the investigation to correct three ministerial errors. [C–570–982] Assessment DATES: Effective June 24, 2016. Utility Scale Wind Towers from the The Department will instruct U.S. FOR FURTHER INFORMATION CONTACT: Bob People’s Republic of China: Customs and Border Protection (CBP) to Palmer or Ryan Mullen, AD/CVD Rescission of Countervailing Duty assess CVDs on all entries of wind Operations, Office V, Enforcement and Administrative Review; 2015 towers from the PRC during the period Compliance, International Trade January 1, 2015, through December 31, Administration, Department of AGENCY: Enforcement and Compliance, 2015, at rates equal to the cash deposit Commerce, 14th Street and Constitution International Trade Administration, of estimated CVDs required at the time Avenue NW., Washington, DC 20230; Department of Commerce. of entry, or withdrawal from warehouse, telephone: (202) 482–9068 or (202) 482– SUMMARY: The Department of Commerce for consumption, in accordance with 19 5260, respectively. CFR 351.212(c)(1)(i). The Department (the Department) is rescinding its SUPPLEMENTARY INFORMATION: On June intends to issue appropriate assessment administrative review of the 24, 2016, the Department published in instructions to CBP 15 days after the countervailing duty (CVD) order on the Federal Register the Preliminary publication of this notice. utility scale wind towers (wind towers) Determination of the CVD investigation from the People’s Republic of China Notifications of geogrids from the PRC.1 On June 24, (PRC) for the period January 1, 2015, This notice serves as a final reminder 2016, and June 27, 2016, respectively, through December 31, 2015. Taian Modern Plastic Co., Ltd. (‘‘Taian DATES: Effective July 25, 2016. to parties subject to administrative protective order (APO) of their Modern’’) and BOSTD Geosynthetics FOR FURTHER INFORMATION CONTACT: responsibility concerning the return or Qingdao Ltd. (‘‘BOSTD Qingdao’’) Kristen Johnson, AD/CVD Operations, destruction of proprietary information alleged that the Department made Office III, Enforcement and Compliance, disclosed under APO, in accordance significant ministerial errors in the International Trade Administration, 2 with 19 CFR 351.305.(a)(3). Timely Preliminary Determination. U.S. Department of Commerce, 14th written notification of the return or Street and Constitution Avenue NW., Significant Ministerial Error destruction of APO materials or Washington, DC 20230; telephone: (202) A ministerial error, as defined in conversion to judicial protective order is 482–4793. section 751(h) of the Tariff Act of 1930, hereby requested. Failure to comply as amended (‘‘the Act’’), includes SUPPLEMENTARY INFORMATION: with the regulations and the terms of an ‘‘errors in addition, subtraction, or other APO is a violation which is subject to Background arithmetic function, clerical errors sanction. The Department initiated an resulting from inaccurate copying, This notice is issued and published in administrative review of the CVD order duplication, or the like, and any other accordance with sections 751(a)(1) and on wind towers from the PRC with type of unintentional error which the 777(i)(1) of the Tariff Act of 1930, as respect to 50 companies for the period administering authority considers amended, and 19 CFR 351.213(d)(4). January 1, 2015, through December 31, ministerial.’’ 3 With respect to 2015, based on a request by the Dated: July 18, 2016. preliminary determinations, 19 CFR petitioner, the Wind Tower Trade Christian Marsh, 351.224(e) provides that the Department Coalition (WTTC).1 On July 6, 2016, Deputy Assistant Secretary for Antidumping ‘‘will analyze any comments received WTTC timely withdrew its request for and Countervailing Duty Operations. and, if appropriate, correct any an administrative review of all 50 [FR Doc. 2016–17562 Filed 7–22–16; 8:45 am] significant ministerial error by 2 companies. No other party requested a BILLING CODE 3510–DS–P amending the preliminary review. determination . . .’’ A significant Rescission of Review DEPARTMENT OF COMMERCE 1 See Countervailing Duty Investigation of Certain Pursuant to 19 CFR 351.213(d)(1), the Biaxial Integral Geogrid Products From the People’s Department will rescind an International Trade Administration Republic of China: Preliminary Determination and Alignment of Final Determination With Final administrative review in whole or in [C–570–037] Antidumping Determination, 81 FR 41292 (June 24, 2016) (‘‘Preliminary Determination’’). 1 See Initiation of Antidumping and 2 On June 30, 2016 the Department received Countervailing Duty Administrative Reviews, 81 FR Certain Biaxial Integral Geogrid comments submitted by Tensar Corporation in 20324 (April 7, 2016) (Initiation Notice). In the Products From the People’s Republic reply to the ministerial allegations of Taian Modern Initiation Notice, we inadvertently listed only 45 of China: Amended Preliminary and BOSTD Qingdao. However, in accordance with companies; however, WTTC requested a review of Results of Countervailing Duty 19 CFR 351.224(c)(3), these reply comments were 50 companies. See Letter from WTTC regarding rejected from the record. See Letter from Catherine ‘‘Request for Administrative Review’’ (February 23, Investigation Bertrand, Program Manager, Office V, ‘‘Certain 2016). Biaxial Integral Geogrids Products from the People’s AGENCY: 2 See Letter from the WTTC regarding Enforcement and Compliance, Republic of China: Tensar Corporation’s Ministerial ‘‘Withdrawal of Request for Administrative International Trade Administration, Reply Comments’’ (July 5, 2016). Review’’ (July 6, 2016). Department of Commerce. 3 See also 19 CFR 351.224(f).
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ministerial error is defined as an error, accordance with section 751(h) of the we inadvertently included BOSTD the correction of which, singly or in Act, we agree that we inadvertently Qingdao’s purchases of imported combination with other errors, would used only Taian Modern’s sales of polypropylene in the LTAR calculation. result in: (1) A change of at least five geogrids in our calculation instead of We also agree that we miscalculated the absolute percentage points in, but not total sales. This resulted in a significant benefit total of the various electricity less than 25 percent of, the error within the meaning of section categories. These errors resulted in a countervailable subsidy rate calculated 735(e) of the Act and 19 CFR 351.224(g). significant error within the meaning of in the original (erroneous) preliminary We have corrected this error in this section 735(e) of the Act and 19 CFR determination; or (2) a difference notice. 351.224(g). We have corrected these between a countervailable subsidy rate BOSTD Qingdao alleges that in the errors in this notice. of zero (or de minimis) and a Preliminary Determination, the countervailable subsidy rate of greater Department stated that it would add to Amended Preliminary Determination than de minimis or vice versa.4 As the purchase price for each individual We are amending the preliminary explained further in the Ministerial domestic purchase the reported delivery countervailing duty rates for Taian Error Memorandum issued concurrently charge and VAT paid to obtain a total Modern and BOSTD Qingdao pursuant with this Notice,5 and pursuant to 19 amount paid. However, the Department to 19 CFR 351.224(e). In addition, the CFR 351.224(e) and (g), the Department unintentionally included BOSTD preliminary ‘‘All-Others’’ Rate was is amending the Preliminary Qingdao’s purchases of imported (e.g., Determination to reflect the correction non-Chinese origin) polypropylene in based on the simple average of the of three ministerial errors made in the the less-than-adequate-remuneration subsidy rates calculated for Taian calculation of the subsidy rates for (‘‘LTAR’’) calculation. Modern and BOSTD Qingdao. Thus, we Taian Modern and BOSTD Qingdao. Next, with respect to the electricity are also amending the ‘‘All-Others’’ rate for LTAR calculation, BOSTD Qingdao to account for the change in Taian Ministerial Error Allegations alleges that the Department made an Modern’s and BOSTD Qingdao’s Taian Modern alleges that, although error in addition. In the Department’s subsidy rate. Specifically, we are the Department stated in the calculation worksheet, the benefit totals calculating the simple average of the Preliminary Determination that it was from each of the various electricity corrected subsidy rate for Taian Modern using total sales as the denominator in categories was hardcode rather than a and BOSTD Qingdao. Further, calculating the subsidy rate because the sum formula. The actual sum of BOSTD correcting Taian Modern’s ‘‘Provision of programs were considered domestic Qingdao’s electricity benefit is Polypropylene for LTAR’’ error and subsidies, the Department actually used considerably less. BOSTD Qingdao’s ‘‘Provision of only Taian Modern’s sales of geogrids as After comparing the ministerial error Electricity for LTAR’’ calculation leads the denominator in its calculations. allegations against record evidence, in to a change in the adverse facts available After comparing the ministerial error accordance with section 751(h) of the rate.6 The revised subsidy rates are as allegations against record evidence, in Act, we agree with BOSTD Qingdao that follows:
Company Subsidy rate
BOSTD Geosynthetics Qingdao Ltd. and Beijing Orient Science & Technology Development Co., Ltd ...... 5.19 Taian Modern Plastic Co., Ltd ...... 20.79 All-Others ...... 12.99 Chengdu Tian Road Engineering Materials Co., Ltd.* ...... 119.13 Chongqing Jiudi Reinforced Soil Engineering Co., Ltd.* ...... 119.13 CNBM International Corporation * ...... 119.13 Dezhou Yaohua Geosynthetics Ltd.* ...... 119.13 Dezhou Zhengyu Geosynthetics Ltd.* ...... 119.13 Hongye Engineering Materials Co., Ltd.* ...... 119.13 Hubei Nete Geosynthetics Ltd.* ...... 119.13 Jiangsu Dingtai Engineering Material Co., Ltd.* ...... 119.13 Jiangsu Jiuding New Material Ltd.* ...... 119.13 Lewu New Material Ltd.* ...... 119.13 Nanjing Jinlu Geosynthetics Ltd.* ...... 119.13 Nanjing Kunchi Composite Material Ltd.* ...... 119.13 Nanyang Jieda Geosynthetics Co., Ltd.* ...... 119.13 Qingdao Hongda Plastics Corp.* ...... 119.13 Shandong Dexuda Geosynthetics Ltd.* ...... 119.13 Shandong Haoyang New Engineering Materials Co., Ltd.* ...... 119.13 Shandong Tongfa Glass Fiber Ltd.* ...... 119.13 Shandong Xinyu Geosynthetics Ltd.* ...... 119.13 Tai’an Haohua Plastics Co., Ltd.* ...... 119.13 Taian Hengbang Engineering Material Co., Ltd.* ...... 119.13 Taian Naite Geosynthetics Ltd.* ...... 119.13 Taian Road Engineering Materials Co., Ltd.* ...... 119.13 Tenax * ...... 119.13
4 See 19 CFR 351.224(g) (1), (2). Biaxial Integral Geogrid Products from the People’s System (‘‘ACCESS’’). ACCESS is available to 5 See Memorandum to Paul Piquado, Assistant Republic of China: Allegation of Significant registered users at http://access.trade.gov, and is Secretary for Enforcement and Compliance, from Ministerial Errors in the Preliminary available to all parties in the Central Records Unit, Determination,’’ dated concurrently with this notice James Doyle, Director, Office V, through Christian room B8024 of the main Department of Commerce (‘‘Ministerial Error Memorandum’’). This building. Marsh, Deputy Assistant Secretary for Antidumping memorandum is on file electronically via 6 and Countervailing Duty Operations, entitled, Enforcement and Compliance’s Antidumping and See Ministerial Error Memorandum for the ‘‘Countervailing Duty Investigation of Certain Countervailing Duty Centralized Electronic Service revised adverse facts available rate.
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Company Subsidy rate
Hengshui Zhongtiejian Group Co.* ...... 119.13 Qingdao Sunrise Dageng Import and Export Co., Ltd.* ...... 119.13 * Non-cooperative company to which an adverse facts available rate is being applied. See Countervailing Duty Investigation of Certain Biaxial Integral Geogrid Products From the People’s Republic of China: Preliminary Determination and Alignment of Final Determination With Final Anti- dumping Determination, 81 FR 41292 (June 24, 2016) and accompanying Preliminary Decision Memo at ‘‘Use of Facts Otherwise Available and Adverse Inferences.’’
These amended preliminary results Council, Room 18002, 1401 Constitution financing challenges faced by U.S. are published in accordance with Avenue NW., Washington, DC 20230, or exporters, especially SMEs, and their sections 751(h) and 777(i)(1) of the Act. via email at: [email protected]. foreign buyers, (2) examine other Dated: July 19, 2016. FOR FURTHER INFORMATION CONTACT: noteworthy issues raised by Paul Piquado, Ericka Ukrow, Office of Finance and stakeholders represented by the membership, (3) identify emerging Assistant Secretary for Enforcement and Insurance Industries, Room 18002, U.S. Compliance. Department of Commerce, 1401 financing sources that would address these gaps, and (4) recommend specific [FR Doc. 2016–17565 Filed 7–22–16; 8:45 am] Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–0405, activities by which these BILLING CODE 3510–DS–P email: [email protected]. recommendations could be incorporated SUPPLEMENTARY INFORMATION: and implemented. DEPARTMENT OF COMMERCE I. Background and Authority II. Structure, Membership, and Operation International Trade Administration The U.S. Department of Commerce Trade Finance Advisory Council (TFAC) The TFAC shall consist of no more U.S. Department of Commerce Trade is established in accordance with the than twenty members appointed by the Finance Advisory Council provisions of the Federal Advisory Secretary. Members may be drawn from: • Establishment Committee Act, as amended, 5 U.S.C. U.S. companies that are exporters of App., to advise the Secretary on matters goods and services; AGENCY: International Trade • relating to private sector trade financing U.S. commercial banks that provide Administration, U.S. Department of for U.S. exporters. The Department trade finance products, cross-border Commerce. affirms that the creation of the TFAC is payment services, or foreign exchange ACTION: Notice of establishment of the necessary and in the public interest. solutions; U.S. Department of Commerce Trade The Department of Commerce, • Non-bank U.S. financial institutions Finance Advisory Council. International Trade Administration, that provide trade finance products, Office of Finance and Insurance cross-border payment services, or SUMMARY: The Secretary of Commerce Industries, is accepting nominations for foreign exchange solutions; (Secretary), having determined that it is • Associations that represent: (a) U.S. in the public interest in connection with membership on the TFAC. The TFAC functions solely as an advisory exporters and SMEs; and (b) U.S. the performance of duties imposed on commercial banks or non-bank financial the Department of Commerce by law, committee. The TFAC shall advise the Secretary in identifying effective ways institutions or other professionals that and with the concurrence of the General facilitate international trade Services Administration, announces to help expand access to finance for U.S. exporters, especially small- and transactions; establishment of the U.S. Department of • medium-sized enterprises (SMEs), and U.S. companies or entities whose Commerce Trade Finance Advisory business includes trade-finance-related Council. This advisory committee will their foreign buyers. The TFAC shall provide a necessary activities or services; advise the Secretary on the development forum to facilitate the discussion • U.S. scholars, academic of strategies and programs that would between a diverse group of stakeholders institutions, or public policy help expand access to trade finance for such as banks, non-bank financial organizations with expertise in global U.S. exporters. The establishment of this institutions, other trade finance related business, trade finance, and federal advisory committee is necessary organizations, and exporters to gain a international banking related subjects; to provide input to the Secretary better understanding regarding current and regarding the challenges faced by U.S. challenges facing U.S. exporters in • Economic development exporters in accessing capital, accessing finance. organizations and other U.S. regional, innovative solutions that can address The TFAC shall draw upon the state and local governmental and non- these challenges, and recommendations experience of its members in order to governmental organizations whose on strategies that can expand access to obtain ideas and suggestions for missions or activities include the finance and educate U.S. exporters on innovative solutions to these challenges. analysis, provision, or facilitation of available resources. This notice also The TFAC shall develop trade finance products/services. requests nominations for membership. recommendations on programs or Membership shall include a broad DATES: Nominations for members must activities that the Department of range of companies and organizations in be received on or before 5 p.m. EDT Commerce could incorporate as part of terms of products and services, Monday, August 22, 2016. its export promotion and trade finance company size, and geographic location ADDRESSES: All nominations should be education efforts. of both the source and destination of submitted to the Executive Secretary, The TFAC shall report to the trade finance. Members will be selected Advisory Council on Trade Finance to: Secretary on its activities and based on their ability to carry out the Ericka Ukrow, Office of Finance and recommendations. In creating its objectives of the TFAC, in accordance Insurance Industries, U.S. Department reports, the TFAC should: (1) Evaluate with applicable Department of of Commerce Trade Finance Advisory current credit conditions and specific Commerce guidelines, in a manner that
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ensures that the TFAC is balanced in (see ‘‘Structure, Membership and Dated: July 19, 2016. terms of points of view and Operation’’). Individuals may nominate Paul Thanos, demographics. Priority may be given to themselves or other individuals, and a Director, Office of Finance and Insurance candidates who have executive-level company, institution, trade association, Industries. (Chief Executive Officer, Executive or organization may nominate a [FR Doc. 2016–17436 Filed 7–22–16; 8:45 am] Chairman, President, or comparable qualified representative for membership BILLING CODE 3510–DR–P level of responsibility) experience. on the TFAC. Members, with the exception of those Nominations shall state that the from academia and public policy DEPARTMENT OF COMMERCE organizations, serve in a representative nominee is willing to serve as a member capacity, representing their own views of the TFAC. All nomination packages International Trade Administration and interests and those of their should include the following information for each nominee: (1) Name [C–475–833, C–570–027, C–533–864, C–580– particular sector, not as Special 879] Government Employees. The members and title of the individual requesting from academia and public policy consideration. (2) Nominations shall Certain Corrosion-Resistant Steel organizations serve as experts and state that the nominee is willing to serve Products From India, Italy, Republic of therefore are Special Government as a member of the TFAC. The potential Korea and the People’s Republic of Employees (SGEs), pursuant to 18 candidate’s personal resume and short China: Countervailing Duty Order U.S.C. 202, and will be required to biography (less than 300 words). (3) A AGENCY: comply with certain ethics laws and brief statement describing how the Enforcement and Compliance, rules, including filing a Confidential potential candidate will contribute to International Trade Administration, Financial Disclosure form. Additionally, the work of the TFAC based on his/her Department of Commerce. a member serving as an expert must not unique experience and perspective (not SUMMARY: Based on affirmative final be a Federally Registered Lobbyist. to exceed 100 words). (4) All relevant determinations by the Department of Prospective nominees should contact information, including mailing Commerce (‘‘Department’’) and the designate the capacity in which they are address, fax, email, phone number, and International Trade Commission applying to serve and identify either support staff information where (‘‘ITC’’), the Department is issuing a their area of expertise or the U.S. relevant. (5) An affirmative statement countervailing duty order on certain industry sector they wish to represent. that the potential candidate meets all corrosion-resistant steel products Members of the TFAC will not be eligibility criteria, including an (‘‘corrosion-resistant steel’’) from India, compensated for their services or affirmative statement that the potential Italy, Republic of Korea (‘‘Korea’’), and reimbursed for their travel expenses. candidate is not required to register as the People’s Republic of China (‘‘PRC’’). Appointments to the TFAC shall be a foreign agent under the Foreign Agents DATES: Effective July 25, 2016. made without regard to political Registration Act of 1938, as amended. FOR FURTHER INFORMATION CONTACT: affiliation. Myrna Lobo at (202) 482–2371 (the In addition, for a potential candidate Each member shall be appointed for a Republic of Korea); Emily Halle at (202) to serve in a representative capacity: (a) term of two years and will serve at the 482–0176 (the People’s Republic of A sponsor letter on the sponsoring pleasure of the Secretary. The Secretary China); Matt Renkey at (202) 482–2312 entity’s letterhead containing a brief may at his/her discretion reappoint any (India); Robert Palmer at (202) 482–9068 member to an additional term or terms, statement of why the potential (Italy); AD/CVD Operations, provided that the member proves to candidate should be considered for Enforcement and Compliance, work effectively on the TFAC and his/ membership on the TFAC. This sponsor International Trade Administration, her knowledge and advice are still letter should also address the potential U.S. Department of Commerce, 14th needed. candidate’s experience and leadership Street and Constitution Avenue NW., The TFAC chair and vice chair or vice related to trade finance; (b) A brief Washington, DC 20230. description of the company, institution, chairs shall be selected from the SUPPLEMENTARY INFORMATION: members of the TFAC by the Assistant trade association, or organization to be Secretary for Industry & Analysis after represented and its business activities Background consulting with the members. Their and export market(s) served, if In accordance with sections 705(d) of term of service will not exceed the applicable; (c) Information regarding the the Tariff Act of 1930, as amended duration of the current charter term and ownership and control of the sponsoring (‘‘Act’’), on June 2, 2016, the they may be reselected for additional entity, including the stock holdings as Department published its affirmative periods should the charter be renewed appropriate; and (d) The sponsoring final determinations that and should they remain on the TFAC. entity’s size (number of employees and countervailable subsidies are being annual sales), place of incorporation, III. Compensation provided to producers and exporters of product or service line, major markets in corrosion-resistant steel from India, Members will not be paid for their which the entity operates, and the Italy, Korea, and the PRC.1 On July 15, engagement in the performance of their entity’s export or import experience. duties as members of the Council. 1 In addition, for a potential candidate See Countervailing Duty Investigation of Certain Members will not receive per diem and Corrosion-Resistant Steel Products From Italy: Final travel expenses. to serve as an expert: A statement that Affirmative Determination and Final Affirmative the potential candidate is not a Critical Circumstances, in Part, 81 FR 35326 (June IV. Nomination Federally registered lobbyist and that 2, 2016); Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products From the The Department of Commerce will the potential candidate understands People’s Republic of China: Final Affirmative consider nominations of all qualified that, if appointed, the potential Determination, and Final Affirmative Critical individuals to ensure that the TFAC candidate will not be allowed to Circumstances Determination, in Part, 81 FR 35308 continue to serve as a Committee (June 2, 2016); Countervailing Duty Investigation of includes representatives of the Certain Corrosion-Resistant Steel Products From viewpoints and members with the areas member if the potential candidate India: Final Affirmative Determination, 81 FR of subject matter expertise noted above becomes a Federally registered lobbyist. Continued
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2016, the ITC notified the Department of Act, we are publishing these reinstitute the suspension of liquidation its affirmative determinations that an countervailing duty orders. of corrosion-resistant steel from India, industry in the United States is As a result of the ITC’s final Italy, Korea, and the PRC, effective on materially injured within the meaning determinations, in accordance with the date of publication of the ITC’s of section 735(b)(1)(A)(ii) of the Act by section 706(a) of the Act, the notice of final determinations in the reason of subsidized imports of subject Department will direct U.S. Customs Federal Register, and to assess, upon merchandise from India, Italy, Korea, and Border Protection (‘‘CBP’’) to assess, further instruction by the Department and the PRC, and its determination that upon further instruction by the pursuant to section 706(a)(1) of the Act, critical circumstances do not exist with Department, countervailing duties on countervailing duties for each entry of respect to imports of subject unliquidated entries of corrosion- the subject merchandise in an amount merchandise from these countries that resistant steel from India, Italy, Korea, based on the net countervailable are subject to the Department’s and the PRC entered, or withdrawn from subsidy rates for the subject affirmative critical circumstances warehouse, for consumption on or after merchandise, except for subject finding.2 November 6, 2015, the date on which merchandise entered by the de minimis the Department published its Scope of the Order companies from Italy (Acciaieria Arvedi preliminary countervailing duty S.p.A., Finarvedi S.p.A., Arvedi Tubi determinations in the Federal Register,3 The products covered by this Acciaio S.p.A., Euro-Trade S.p.A., and before March 4, 2016, the date on investigation are certain corrosion- Siderurgica Triestina Srl., Marcegaglia which the Department instructed CBP to resistant steel products. For a complete S.p.A. and Marfin S.p.A.) and the de discontinue the suspension of description of the scope of the order, see minimis companies from Korea (Union liquidation in accordance with section Appendix I. Steel Manufacturing Co. Ltd/Dongkuk 703(d) of the Act. Section 703(d) of the Steel Mill Co., Ltd.). These exclusions Countervailing Duty Order Act states that the suspension of liquidation pursuant to a preliminary will apply only to subject merchandise In accordance with sections determination may not remain in effect both produced and exported by de 705(b)(1)(A)(i) and 705(d) of the Act, the for more than four months. Therefore, minimis companies from Italy ITC has notified the Department of its entries of corrosion-resistant steel made (Acciaieria Arvedi S.p.A., Finarvedi final determinations that the industry in on or after March 4, 2016, and prior to S.p.A., Arvedi Tubi Acciaio S.p.A., the United States producing corrosion- the date of publication of the ITC’s final Euro-Trade S.p.A., Siderurgica Triestina resistant steel is materially injured by determination in the Federal Register Srl., Marcegaglia S.p.A. and Marfin reason of subsidized imports of are not liable for the assessment of S.p.A.) and the de minimis companies corrosion-resistant steel from India, countervailing duties due to the from Korea (Union Steel Manufacturing Italy, Korea, and the PRC, and that Department’s discontinuation, effective Co. Ltd/Dongkuk Steel Mill Co., Ltd.). critical circumstances do not exist with March 4, 2016, of the suspension of On or after the date of publication of the respect to imports of subject liquidation. ITC’s final injury determinations in the merchandise from Italy, Korea, and the Federal Register, CBP must require,4 at PRC that are subject to the Department’s Continuation of Suspension of the same time as importers would affirmative critical circumstances Liquidation normally deposit estimated duties on finding, in part. Therefore, in In accordance with section 706 of the this merchandise, a cash deposit equal accordance with section 705(c)(2) of the Act, the Department will direct CBP to to the rates noted below:
Subsidy rate (percent)
Exporter/Producer from India: JSW Steel Limited and JSW Steel Coated Products Limited ...... 29.49 Uttam Galva Steels Limited and Uttam Value Steels Limited ...... 8.00 All-Others ...... 18.73 Exporter/Producer from Italy: Acciaieria Arvedi S.p.A., Finarvedi S.p.A., Arvedi Tubi Acciaio S.p.A., Euro-Trade S.p.A., and Siderurgica Triestina Srl., col- lectively, the Arvedi Group ...... 5 0.48 Marcegaglia S.p.A. and Marfin S.p.A., the Marcegaglia Group ...... 6 0.07 Ilva S.p.A ...... 38.51 All-Others ...... 13.02 Exporter/Producer from Korea: Union Steel Manufacturing Co. Ltd/Dongkuk Steel Mill Co., Ltd ...... 7 0.72 Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co., Ltd ...... 1.19
35323 (June 2, 2016); and Countervailing Duty TA–534–537 and 731–TA–1274–1278 (Final), FR 68854 (November 6, 2015), (collectively, Investigation of Certain Corrosion-Resistant Steel USITC Publication 4620, (July 2016). ‘‘Preliminary Determinations’’). See also Products From the Republic of Korea: Final 3 See Countervailing Duty Investigation of Certain Antidumping and Countervailing Duty Affirmative Determination, and Final Affirmative Corrosion-Resistant Steel Products From Italy: Investigations of Corrosion-Resistant Steel Products Critical Circumstances Determination, in Part, 81 Preliminary Affirmative Determination, 80 FR From India, Italy, the People’s Republic of China, FR 35310 (June 2, 2016). 68839 (November 6, 2015), Countervailing Duty the Republic of Korea, and Taiwan: Preliminary Investigation of Certain Corrosion-Resistant Steel 2 See Letter to Christian Marsh, Deputy Assistant Determinations of Critical Circumstances, 80 FR Products From the People’s Republic of China: Secretary of Commerce for Enforcement and 68504 (November 5, 2015) (‘‘Preliminary Critical Preliminary Affirmative Determination, 80 FR Circumstances’’). Compliance, from Irving A. Williamson, Chairman 68843 (November 6, 2015), Countervailing Duty 4 of the U.S. International Trade Commission, Investigation of Certain Corrosion-Resistant Steel With the exception of those companies whose regarding certain corrosion-resistant steel products Products From the Republic of Korea: Preliminary net subsidy was de minimis, and hence, are from India, Italy, Korea, the PRC, and Taiwan (July Affirmative Determination, 80 FR 68842 (November excluded from this order. These exclusions will 15, 2016) (‘‘ITC Letter’’); see also Corrosion- 6, 2015), Countervailing Duty Investigation of apply only to subject merchandise both produced Resistant Steel Products from India, Italy, Korea, the Certain Corrosion-Resistant Steel Products From and exported by those companies identified here PRC, and Taiwan, USITC Investigation Nos. 701– India: Preliminary Affirmative Determination, 80 whose net subsidy was de minimis.
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Subsidy rate (percent)
All-Others ...... 1.19 Exporter/Producer from the PRC: Yieh Phui (China) Technomaterial Co., Ltd ...... 39.05 Angang Group Hong Kong Company Ltd ...... 241.07 Baoshan Iron & Steel Co., Ltd ...... 241.07 Duferco S.A., Hebei Iron & Steel Group, and Tangshan Iron and Steel Group Co., Ltd ...... 241.07 Changshu Everbright Material Technology ...... 241.07 Handan Iron & Steel Group ...... 241.07 All-Others ...... 39.05
Critical Circumstances lengths) of a thickness less than 4.75 mm and (‘‘HSLA’’) steels. IF steels are recognized as a width that is 12.7 mm or greater and that low carbon steels with micro-alloying levels Withregard to the ITC’s negative measures at least 10 times the thickness. The of elements such as titanium and/or niobium critical circumstances determination on products covered also include products not added to stabilize carbon and nitrogen imports of corrosion-resistant steel from in coils (e.g., in straight lengths) of a elements. HSLA steels are recognized as Italy, Korea, and the PRC, we will thickness of 4.75 mm or more and a width steels with micro-alloying levels of elements instruct CBP to lift suspension and to exceeding 150 mm and measuring at least such as chromium, copper, niobium, refund any cash deposits made to secure twice the thickness. The products described titanium, vanadium, and molybdenum. the payment of estimated countervailing above may be rectangular, square, circular, or Furthermore, this scope also includes Advanced High Strength Steels (‘‘AHSS’’) duties with respect to entries of the other shape and include products of either rectangular or non-rectangular cross-section and Ultra High Strength Steels (‘‘UHSS’’), subject merchandise entered, or where such cross-section is achieved both of which are considered high tensile withdrawn from warehouse, for subsequent to the rolling process, i.e., strength and high elongation steels. consumption on or after August 8, 2015 products which have been ‘‘worked after Subject merchandise also includes (i.e., 90 days prior to the date of the rolling’’ (e.g., products which have been corrosion-resistant steel that has been further publication of the CVD Preliminary beveled or rounded at the edges). For processed in a third country, including but Determinations), but before November 6, purposes of the width and thickness not limited to annealing, tempering painting, requirements referenced above: varnishing, trimming, cutting, punching and/ 2015 (i.e., the date of publication of the or slitting or any other processing that would CVD Preliminary Determinations). (1) Where the nominal and actual measurements vary, a product is within the not otherwise remove the merchandise from Notifications to Interested Parties scope if application of either the nominal or the scope of the order if performed in the actual measurement would place it within country of manufacture of the in-scope This notice constitutes the the scope based on the definitions set forth corrosion resistant steel. countervailing duty orders with respect above, and All products that meet the written physical to corrosion-resistant steel from Italy, (2) where the width and thickness vary for description, and in which the chemistry India, Korea, and the PRC pursuant to a specific product (e.g., the thickness of quantities do not exceed any one of the noted section 706(a) of the Act. Interested certain products with non-rectangular cross- element levels listed above, are within the section, the width of certain products with scope of this order unless specifically parties may contact the Department’s excluded. The following products are outside Central Records Unit, Room B8024 of non-rectangular shape, etc.), the measurement at its greatest width or of and/or specifically excluded from the the main Commerce Building, for copies thickness applies. scope of this order: • of an updated list of countervailing duty Steel products included in the scope of this Flat-rolled steel products either plated or orders currently in effect. order are products in which: (1) iron coated with tin, lead, chromium, chromium These orders are issued and published predominates, by weight, over each of the oxides, both tin and lead (‘‘terne plate’’), or in accordance with section 706(a) of the other contained elements; (2) the carbon both chromium and chromium oxides (‘‘tin Act and 19 CFR 351.211(b). content is 2 percent or less, by weight; and free steel’’), whether or not painted, (3) none of the elements listed below exceeds varnished or coated with plastics or other Dated: July 18, 2016. the quantity, by weight, respectively non-metallic substances in addition to the Paul Piquado, indicated: metallic coating; • Clad products in straight lengths of Assistant Secretary for Enforcement and • 2.50 percent of manganese, or 4.7625 mm or more in composite thickness Compliance. • 3.30 percent of silicon, or • and of a width which exceeds 150 mm and Appendix I 1.50 percent of copper, or measures at least twice the thickness; and • 1.50 percent of aluminum, or • • Certain clad stainless flat-rolled The products covered by this order are 1.25 percent of chromium, or products, which are three-layered corrosion- certain flat-rolled steel products, either clad, • 0.30 percent of cobalt, or • resistant flat-rolled steel products less than plated, or coated with corrosion-resistant 0.40 percent of lead, or 4.75 mm in composite thickness that consist metals such as zinc, aluminum, or zinc-, • 2.00 percent of nickel, or • of a flat-rolled steel product clad on both aluminum-, nickel- or iron-based alloys, 0.30 percent of tungsten (also called sides with stainless steel in a 20%–60%– whether or not corrugated or painted, wolfram), or 20% ratio. varnished, laminated, or coated with plastics • 0.80 percent of molybdenum, or • The products subject to the order are or other non-metallic substances in addition 0.10 percent of niobium (also called currently classified in the Harmonized Tariff to the metallic coating. The products covered columbium), or Schedule of the United States (‘‘HTSUS’’) • include coils that have a width of 12.7 mm 0.30 percent of vanadium, or under item numbers: 7210.30.0030, • or greater, regardless of form of coil (e.g., in 0.30 percent of zirconium 7210.30.0060, 7210.41.0000, 7210.49.0030, successively superimposed layers, spirally Unless specifically excluded, products are 7210.49.0091, 7210.49.0095, 7210.61.0000, oscillating, etc.). The products covered also included in this scope regardless of levels of 7210.69.0000, 7210.70.6030, 7210.70.6060, include products not in coils (e.g., in straight boron and titanium. 7210.70.6090, 7210.90.6000, 7210.90.9000, For example, specifically included in this 7212.20.0000, 7212.30.1030, 7212.30.1090, 5 De minimis. scope are vacuum degassed, fully stabilized 7212.30.3000, 7212.30.5000, 7212.40.1000, 6 Id. (commonly referred to as interstitial-free 7212.40.5000, 7212.50.0000, and 7 Id. (‘‘IF’’)) steels and high strength low alloy 7212.60.0000.
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The products subject to the order may also Background a width of 12.7 mm or greater, enter under the following HTSUS item regardless of form of coil (e.g., in numbers: 7210.90.1000, 7215.90.1000, In accordance with sections 735(d) and 777(i)(1) of the Tariff Act of 1930, successively superimposed layers, 7215.90.3000, 7215.90.5000, 7217.20.1500, spirally oscillating, etc.). The products 7217.30.1530, 7217.30.1560, 7217.90.1000, as amended (the ‘‘Act’’), and 19 CFR 7217.90.5030, 7217.90.5060, 7217.90.5090, 351.210(c), on June 2, 2016, the covered also include products not in 7225.91.0000, 7225.92.0000, 7225.99.0090, Department published its affirmative coils (e.g., in straight lengths) of a 7226.99.0110, 7226.99.0130, 7226.99.0180, final determinations in the LTFV thickness less than 4.75 mm and a 7228.60.6000, 7228.60.8000, and investigations of certain corrosion- width that is 12.7 mm or greater and 7229.90.1000. resistant steel products from India, Italy, that measures at least 10 times the The HTSUS subheadings above are Korea, the PRC, and Taiwan.1 On July thickness. The products covered also provided for convenience and customs 15, 2016, the ITC notified the include products not in coils (e.g., in purposes only. The written description of the straight lengths) of a thickness of 4.75 scope of the order is dispositive. Department of its affirmative determination that an industry in the mm or more and a width exceeding 150 [FR Doc. 2016–17563 Filed 7–22–16; 8:45 am] United States is materially injured mm and measuring at least twice the BILLING CODE 3510–DS–P within the meaning of section thickness. The products described above 735(b)(1)(A)(i) of the Act, by reason of may be rectangular, square, circular, or the LTFV imports of certain corrosion- other shape and include products of DEPARTMENT OF COMMERCE resistant steel products from India, Italy, either rectangular or non-rectangular cross-section where such cross-section International Trade Administration Korea, the PRC, and Taiwan, and its determination that critical is achieved subsequent to the rolling circumstances do not exist with respect process, i.e., products which have been [A–533–863, A–475–832, A–570–026, A–580– to imports of subject merchandise from ‘‘worked after rolling’’ (e.g., products 878, A–583–856] Italy, Korea, the PRC, and Taiwan that which have been beveled or rounded at Certain Corrosion-Resistant Steel are subject to the Department’s the edges). For purposes of the width Products From India, Italy, the affirmative critical circumstances and thickness requirements referenced People’s Republic of China, the findings.2 above: (1) Where the nominal and actual Republic of Korea and Taiwan: Scope of the Orders Amended Final Affirmative measurements vary, a product is within The products covered by these orders Antidumping Determination for India the scope if application of either the are certain flat-rolled steel products, and Taiwan, and Antidumping Duty nominal or actual measurement would either clad, plated, or coated with Orders place it within the scope based on the corrosion-resistant metals such as zinc, definitions set forth above, and AGENCY: Enforcement and Compliance, aluminum, or zinc-, aluminum-, nickel- (2) where the width and thickness International Trade Administration, or iron-based alloys, whether or not vary for a specific product (e.g., the Department of Commerce. corrugated or painted, varnished, thickness of certain products with non- SUMMARY: Based on affirmative final laminated, or coated with plastics or rectangular cross-section, the width of determinations by the Department of other non-metallic substances in certain products with non-rectangular Commerce (the ‘‘Department’’) and the addition to the metallic coating. The shape, etc.), the measurement at its International Trade Commission (the products covered include coils that have greatest width or thickness applies. ‘‘ITC’’), the Department is issuing Steel products included in the scope 1 antidumping duty orders on certain See Certain Corrosion-Resistant Steel Products of these orders are products in which: from India: Final Determination of Sales at Less (1) Iron predominates, by weight, over corrosion-resistant steel products from Than Fair Value and Final Negative Determination India, Italy, the People’s Republic of of Critical Circumstances, 81 FR 35329 (June 2, each of the other contained elements; (2) China (‘‘PRC’’), the Republic of Korea 2016) (‘‘India Final’’); Certain Corrosion-Resistant the carbon content is 2 percent or less, (‘‘Korea’’), and Taiwan. In addition, the Steel Products from Italy: Final Determination of by weight; and (3) none of the elements Sales at Less Than Fair Value and Final Affirmative listed below exceeds the quantity, by Department is amending its final Determination of Critical Circumstances, in Part, 81 determinations of sales at less-than-fair- FR 35320 (June 2, 2016) (‘‘Italy Final’’); Certain weight, respectively indicated: • value (‘‘LTFV’’) from India and Taiwan, Corrosion-Resistant Steel Products from the 2.50 percent of manganese, or • as a result of ministerial errors. Republic of Korea: Final Determination of Sales at 3.30 percent of silicon, or Less Than Fair Value and Final Affirmative • 1.50 percent of copper, or DATES: Effective July 25, 2016. Determination of Critical Circumstances, 81 FR • 35303 (June 2, 2016) (‘‘Korea Final’’); Certain 1.50 percent of aluminum, or FOR FURTHER INFORMATION CONTACT: Julia Corrosion-Resistant Steel Products from the • 1.25 percent of chromium, or Hancock or Susan Pulongbarit at (202) People’s Republic of China: Final Determination of • 0.30 percent of cobalt, or 482–1394 and (202) 482–4031, Sales at Less Than Fair Value and Final Affirmative • 0.40 percent of lead, or Critical Circumstances Determination, in Part, 81 • respectively (Italy), Kabir Archuletta at FR 35316 (June 2, 2016) (‘‘PRC Final’’); and Certain 2.00 percent of nickel, or (202) 482–2593 (India); Elfi Blum or Corrosion-Resistant Steel Products from Taiwan: • 0.30 percent of tungsten (also called Lingjun Wang (Korea) at (202) 482–0197 Final Determination of Sales at Less Than Fair wolfram), or or (202) 482–2316, respectively; Nancy Value and Final Affirmative Determination of • 0.80 percent of molybdenum, or Critical Circumstances, in Part, 81 FR 35313 (June • Decker or Andrew Huston at (202) 482– 2, 2016) (‘‘Taiwan Final’’). 0.10 percent of niobium (also called 0196 or (202) 482–4261, respectively 2 See Letter to Christian Marsh, Deputy Assistant columbium), or (PRC); or Shanah Lee or Paul Stolz at Secretary of Commerce for Enforcement and • 0.30 percent of vanadium, or (202) 482–6386 and (202) 482–4474, Compliance, from Irving A. Williamson, Chairman • 0.30 percent of zirconium respectively (Taiwan), AD/CVD of the U.S. International Trade Commission, regarding certain corrosion-resistant steel products Unless specifically excluded, products Operations, Enforcement and from India, Italy, Korea, the PRC, and Taiwan (July are included in this scope regardless of Compliance, U.S. Department of 15, 2016) (‘‘ITC Letter’’); see also Corrosion- levels of boron and titanium. Commerce, 14th Street and Constitution Resistant Steel Products from India, Italy, Korea, For example, specifically included in Avenue NW., Washington, DC 20230. the PRC, and Taiwan, USITC Investigation Nos. 701–TA–534–537 and 731–TA–1274–1278 (Final), this scope are vacuum degassed, fully SUPPLEMENTARY INFORMATION: USITC Publication 4620 (July 2016). stabilized (commonly referred to as
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interstitial-free (IF)) steels and high 7210.70.6090, 7210.90.6000, decreased from 4.44 percent to 4.43 strength low alloy (HSLA) steels. IF 7210.90.9000, 7212.20.0000, percent. Although the ‘‘all-others’’ rate steels are recognized as low carbon 7212.30.1030, 7212.30.1090, is based in part on JSW’s dumping steels with micro-alloying levels of 7212.30.3000, 7212.30.5000, margin, the corrections noted above did elements such as titanium and/or 7212.40.1000, 7212.40.5000, not have an effect on the all-others rate niobium added to stabilize carbon and 7212.50.0000, and 7212.60.0000. determined in the India Final.7 nitrogen elements. HSLA steels are The products subject to the orders recognized as steels with micro-alloying may also enter under the following Amendment to Taiwan Final levels of elements such as chromium, HTSUS item numbers: 7210.90.1000, Determination copper, niobium, titanium, vanadium, 7215.90.1000, 7215.90.3000, On June 7, 2016, AK Steel and molybdenum. 7215.90.5000, 7217.20.1500, Corporation (‘‘Petitioner’’) submitted to Furthermore, this scope also includes 7217.30.1530, 7217.30.1560, the Department a timely allegation that Advanced High Strength Steels (AHSS) 7217.90.1000, 7217.90.5030, the Department made ministerial errors and Ultra High Strength Steels (UHSS), 7217.90.5060, 7217.90.5090, in the margin calculations in the Taiwan both of which are considered high 7225.91.0000, 7225.92.0000, Final.8 tensile strength and high elongation 7225.99.0090, 7226.99.0110, The Department reviewed the record steels. 7226.99.0130, 7226.99.0180, and agrees that the errors referenced in Subject merchandise also includes 7228.60.6000, 7228.60.8000, and Petitioner’s allegation constitute corrosion-resistant steel that has been 7229.90.1000. ministerial errors within the meaning of further processed in a third country, The HTSUS subheadings above are 19 CFR 351.224(f).9 Specifically, as a including but not limited to annealing, provided for convenience and customs result of programming errors in the tempering, painting, varnishing, purposes only. The written description application of partial AFA to certain trimming, cutting, punching and/or of the scope of the orders is dispositive. control numbers, the Department failed slitting or any other processing that Amendment to India Final to use the sales quantities to weight would not otherwise remove the Determination average the costs of certain control merchandise from the scope of the numbers, the Department failed to use On May 31, 2016, JSW Steel Ltd. and orders if performed in the country of the highest total cost of manufacture as JSW Steel Coated Products Limited manufacture of the in-scope corrosion AFA for certain control numbers, and (collectively ‘‘JSW’’) alleged that the resistant steel. the Department incorrectly applied AFA Department made ministerial errors in All products that meet the written to certain control numbers.10 Pursuant the India Final.3 A ministerial error is physical description, and in which the to 19 CFR 351.224(e), the Department is defined as an error in addition, chemistry quantities do not exceed any amending the Taiwan Final to reflect subtraction, or other arithmetic one of the noted element levels listed the correction of the ministerial errors function, clerical error resulting from above, are within the scope of these described above. Based on our inaccurate copying, duplication, or the orders unless specifically excluded. The correction, the weighted-average like, and any other similar type of following products are outside of and/ dumping margin for the collapsed entity unintentional error which the Secretary or specifically excluded from the scope comprised of Prosperity Tieh Enterprise considers ministerial.4 of these orders: Company., Ltd., Yieh Phui Enterprise • Flat-rolled steel products either The Department reviewed the record Co., and Synn Industrial Co., Ltd., plated or coated with tin, lead, and agrees that three of the errors increased from 3.77 percent to 10.34 chromium, chromium oxides, both tin referenced in JSW’s allegation constitute percent.11 In addition, because the ‘‘all- and lead (‘‘terne plate’’), or both ministerial errors within the meaning of others’’ rate is based on the corrected chromium and chromium oxides (‘‘tin 19 CFR 351.224(f).5 Specifically, the weighted-average dumping margin, the free steel’’), whether or not painted, Department used an incorrect variable Department has revised the all-others varnished or coated with plastics or in the recalculation of JSW’s home rate in this amended final determination other non-metallic substances in market inventory carrying costs, accordingly.12 addition to the metallic coating; transposed two digits in the • Clad products in straight lengths of recalculation of JSW’s indirect selling Antidumping Duty Orders expenses, and neglected to fully adjust 4.7625 mm or more in composite As stated above, on July 15, 2016, in JSW’s cash deposit rate for export thickness and of a width which exceeds accordance with sections 735(b)(1)(A)(i) subsidies based on adverse facts 150 mm and measures at least twice the and 735(d) of the Act, the ITC notified available (‘‘AFA’’).6 Pursuant to 19 CFR thickness; and the Department of its final • Certain clad stainless flat-rolled 351.224(e), the Department is amending determinations in these investigations, products, which are three-layered the India Final to reflect the correction in which it found that an industry in the corrosion-resistant flat-rolled steel of the ministerial errors described products less than 4.75 mm in above. Based on our correction, JSW’s 7 Id. composite thickness that consist of a weighted-average dumping margin 8 See Letter to the Secretary of Commerce from flat-rolled steel product clad on both Petitioners ‘‘Certain Corrosion-Resistant Steel sides with stainless steel in a 20%-60%- 3 See Letter to the Secretary of Commerce from Products From Taiwan: Petitioner’s Ministerial 20% ratio. JSW ‘‘JSW’s Ministerial Error Comments in Error Comments’’ (June 7, 2016). The products subject to the orders are Response to the Department’s Final Determination’’ 9 See Memorandum to Christian Marsh, Deputy (May 31, 2016). Assistant Secretary for Antidumping and currently classified in the Harmonized 4 See section 735(e) of the Act. Countervailing Duty Operations ‘‘Ministerial Error Tariff Schedule of the United States 5 See Memorandum to Christian Marsh, Deputy Memorandum Concerning the Final Determination (‘‘HTSUS’’) under item numbers: Assistant Secretary for Antidumping and in the Antidumping Duty Investigation of Certain 7210.30.0030, 7210.30.0060, Countervailing Duty Operations ‘‘Antidumping Corrosion-Resistant Steel Products from Taiwan’’ (July 15, 2016). 7210.41.0000, 7210.49.0030, Duty Investigation of Certain Corrosion-Resistant Steel Products from India: Allegation of Ministerial 10 Id. 7210.49.0091, 7210.49.0095, Errors in the Final Determination’’ (July 5, 2016) 11 Id. 7210.61.0000, 7210.69.0000, (‘‘India Ministerial Error Memo’’). 12 See the ‘‘Estimated Weighted-Average 7210.70.6030, 7210.70.6060, 6 Id. Dumping Margins’’ section below.
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United States is materially injured by injury determination as further exports of the subject merchandise reason of imports of certain corrosion- described below. request the Department to extend that resistant steel products from India, Italy, four-month period to no more than six Suspension of Liquidation Korea, the PRC, and Taiwan and that months. At the request of exporters that critical circumstances do not exist with In accordance with section account for a significant proportion of respect to imports of subject 735(c)(1)(B) of the Act, the Department certain corrosion-resistant steel merchandise from Italy, Korea, the PRC, will instruct CBP to continue to suspend products from India, Italy, Korea, the and Taiwan that are subject to the liquidation on all relevant entries of PRC, and Taiwan, the Department Department’s affirmative critical certain corrosion-resistant steel extended the four-month period to six circumstances findings.13 Therefore, in products from India, Italy, Korea, the months in each case.19 In the underlying accordance with section 735(c)(2) of the PRC, and Taiwan. These instructions investigations, the Department Act, the Department is issuing these suspending liquidation will remain in published the preliminary antidumping duty orders. Because the effect until further notice. determinations on January 4, 2016. ITC determined that imports of certain The Department will also instruct Therefore, the extended period, corrosion-resistant steel products from CBP to require cash deposits equal to beginning on the date of publication of India, Italy, Korea, the PRC, and Taiwan the amounts as indicated below, which the preliminary determination, ended are materially injuring a U.S. industry, are adjusted for certain countervailable on July 2, 2016. Furthermore, section unliquidated entries of such subsidies, where appropriate, as 737(b) of the Act states that definitive merchandise from India, Italy, Korea, described below. Accordingly, effective duties are to begin on the date of on the date of publication of the ITC’s the PRC, and Taiwan, entered or publication of the ITC’s final injury final affirmative injury determinations, withdrawn from warehouse for determination. CBP will require, at the same time as Therefore, in accordance with section consumption, are subject to the importers would normally deposit 733(d) of the Act and our practice, the assessment of antidumping duties. estimated duties on this subject Department will instruct CBP to Therefore, in accordance with section merchandise, a cash deposit equal to the terminate the suspension of liquidation 736(a)(1) of the Act, the Department will cash deposit rates listed below.15 The and to liquidate, without regard to direct U.S. Customs and Border relevant all-others rates apply to all antidumping duties, unliquidated Protection (‘‘CBP’’) to assess, upon producers or exporters not specifically entries of certain corrosion-resistant further instruction by the Department, listed. For the purpose of determining steel products from India, Italy, Korea, antidumping duties equal to the amount cash deposit rates, the estimated the PRC, and Taiwan entered, or by which the normal value of the weighted-average dumping margins for withdrawn from warehouse, for merchandise exceeds the export price imports of subject merchandise from consumption after July 3, 2016, the date (or constructed export price) of the India, Italy, Korea, and the PRC have on which the provisional measures merchandise, for all relevant entries of been adjusted, as appropriate, for export expired, until and through the day certain corrosion-resistant steel subsidies found in the final preceding the date of publication of the products from India, Italy, Korea, the determinations of the companion ITC’s final injury determinations in the PRC, and Taiwan. Antidumping duties countervailing duty investigations of Federal Register. Suspension of will be assessed on unliquidated entries this merchandise imported from India, liquidation will resume on the date of of certain corrosion-resistant steel Italy, Korea, and the PRC.16 Because the publication of the ITC’s final products from India, Italy, Korea, the Department determined that determination in the Federal Register. PRC, and Taiwan entered, or withdrawn countervailable subsidies were not Critical Circumstances from warehouse, for consumption on or provided to producers and exporters of after January 4, 2016, the date of certain corrosion-resistant steel With regard to the ITC’s negative publication of the preliminary products from Taiwan, we did not critical circumstances determination on determinations,14 but will not include adjust the weighted-average dumping imports of subject merchandise from entries occurring after the expiration of margin for export subsidies.17 In the Korea, the PRC, and Taiwan, the the provisional measures period and case of determining cash deposit rates Department will instruct CBP to lift before publication of the ITC’s final for subject merchandise from the PRC, suspension and to refund any cash estimated weighted-average dumping deposits made to secure the payment of 13 See ITC Letter. margins were also adjusted, where estimated antidumping duties with 14 See Certain Corrosion-Resistant Steel Products appropriate, for estimated domestic respect to entries of subject merchandise from India: Affirmative Preliminary Determination subsidy pass-through.18 entered, or withdrawn from warehouse, of Sales at Less Than Fair Value and Postponement for consumption on or after October 6, of Final Determination, 81 FR 63 (January 4, 2016) Provisional Measures (‘‘India Prelim’’); Certain Corrosion-Resistant Steel 2015 (i.e., 90 days prior to the date of Products from Italy: Preliminary Affirmative Section 733(d) of the Act states that publication of the preliminary Determination of Sales at Less Than Fair Value and instructions issued pursuant to an determinations), but before January 4, Postponement of Final Determination, 81 FR 69 affirmative preliminary determination 2016, (i.e., the date of publication of the (January 4, 2016) (‘‘Italy Prelim’’); Certain Corrosion-Resistant Steel Products from the may not remain in effect for more than preliminary determinations). With Republic of Korea: Affirmative Preliminary four months, except where exporters regard to the ITC’s negative critical Determination of Sales at Less Than Fair Value and representing a significant proportion of circumstances determination on imports Postponement of Final Determination, 81 FR 78 of subject merchandise from Italy, the (January 4, 2016) (‘‘Korea Prelim’’); Certain 15 Corrosion-Resistant Steel Products from the See section 736(a)(3) of the Act. Department will instruct CBP to lift People’s Republic of China: Affirmative Preliminary 16 See India Final; Italy Final; Korea Final; and suspension and to refund any cash Determination of Sales at Less Than Fair Value and PRC Final. See also section 772(c)(1)(C) of the Act. deposits made to secure payment of Postponement of Final Determination, 81 FR 75 17 See Countervailing Duty Investigation of estimated antidumping duties with (January 4, 2016) (‘‘PRC Prelim’’); and Certain Certain Corrosion-Resistant Steel Products From Corrosion-Resistant Steel Products from Taiwan: Taiwan: Final Negative Countervailing Duty respect to entries of subject merchandise Negative Preliminary Determination of Sales at Less Determination, 81 FR 35299 (June 2, 2016). Than Fair Value, 81 FR 72 (January 4, 2016) 18 See China Final, 81 FR at 35318. See also 19 See India Prelim; Italy Prelim; Korea Prelim; (‘‘Taiwan Prelim’’). section 777A(f) of the Act. PRC Prelim; and Taiwan Prelim.
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entered, or withdrawn from warehouse, 2, 2016, (i.e., the date of publication of Estimated Weighted-Average Dumping for consumption by one respondent on the final determination for Italy).20 Margins or after March 4, 2016 (i.e., 90 days prior The weighted-average antidumping to the date of publication of the final duty margin percentages and cash determination for Italy), but before June deposit rates are as follows:
Weighted-average Cash deposit rate Exporter or producer dumping margin (percent) (percent) 21
India: JSW: 22 ...... JSW Steel Ltd ...... JSW Coated Products Ltd ...... 4.43 0.00 Uttam Galva: 23 ...... Uttam Galva Steel Limited ...... Uttam Value Steels Limited ...... Atlantis International Services Company Ltd ...... Uttam Galva Steels, Netherlands, B.V ...... Uttam Galva Steels (BVI) Limited ...... 3.05 0.00 All-Others ...... 3.86 0.00 Italy: Acciaieria Arvedi S.p.A ...... 12.63 12.63 Marcegalia S.p.A 24 ...... 92.12 92.12 All-Others ...... 12.63 12.48 Korea: Dongkuk Steel Mill Co., Ltd./Union Steel Manufacturing Co., Ltd ...... 8.75 8.75 Hyundai Steel Company ...... 47.80 47.79 All-Others ...... 28.28 28.27 PRC: Yieh Phui (China) Technomaterial Co., Ltd ...... 209.97 199.43 Jiangyin Zongcheng Steel Co. Ltd ...... 209.97 199.43 Union Steel China ...... 209.97 199.43 PRC-Wide Entity ...... 209.97 199.43 Taiwan: Prosperity Tieh Enterprise Co., Ltd., Yieh Phui Enterprise Co., Ltd., and Synn Industrial Co., Ltd 25 10.34 All-Others ...... 10.34
This notice constitutes the DEPARTMENT OF COMMERCE Type of Request: Regular (extension of antidumping duty orders with respect to a currently approved information certain corrosion-resistant steel National Oceanic and Atmospheric collection). products from India, Italy, the PRC, Administration Number of Respondents: 1705. Korea and Taiwan pursuant to section Average Hours per Response: HMS Submission for OMB Review; 736(a) of the Act. Interested parties can permit applications, 30 minutes; HMS Comment Request find a list of antidumping duty orders permit renewal applications, 3 minutes; CPS renewal applications, 15 minutes; currently in effect at http://enforcement. The Department of Commerce will CPS transfers, 30 minutes; photo trade.gov/stats/iastats1.html. submit to the Office of Management and requirement, 30 minutes; exempted These orders are published in Budget (OMB) for clearance the fishing permits, 1 hour; appeals, 2 following proposal for collection of accordance with section 736(a) of the hours. Act and 19 CFR 351.211(b). information under the provisions of the Burden Hours: 94. Paperwork Reduction Act (44 U.S.C. Dated: July 18, 2016. Chapter 35). Needs and Uses: This request is for a Paul Piquado, revision and extension to the existing Agency: National Oceanic and reporting requirements approved under Assistant Secretary for Enforcement and Atmospheric Administration (NOAA). Compliance. OMB Control Number 0648–0204, West Title: West Coast Permit Family of [FR Doc. 2016–17557 Filed 7–22–16; 8:45 am] Coast Region Family of Forms. The West Forms—Southwest. Coast Region (WCR) Permits Office BILLING CODE 3510–DS–P OMB Control Number: 0648–0204. administers permits required for Form Number(s): None. persons to participate in Federally-
20 In the Italy Final, the Department found that 22 The Department found JSW Steel Ltd. and JSW 24 The Department found that Marcegaglia critical circumstances existed for Marcegaglia Coated Products Limited to be affiliated and treated S.p.A.’s weighted-average dumping margin and S.p.A. Because we calculated a de minimis them as a single entity. JSW’s cash deposit rate was cash deposit rate should also be applied to preliminary dumping margin for Marcegaglia reduced as a result of correction of the ministerial Marcegaglia Carbon Steel. See Italy Final and errors described above. See India Final, 81 FR at S.p.A., we did not instruct CBP to collect cash accompanying Issues and Decision Memorandum at 35330. deposits until 90 days before the Italy Final. Comment 2. 23 The Department found Uttam Galva Steels 25 21 See India Ministerial Error Memo for a Limited, Uttam Value Steels Limited, Atlantis The Department found Yieh Phui Enterprise complete discussion regarding the change to JSW’s International Services Company Ltd., Uttam Galva Co., Ltd., Synn Industrial Co., Ltd., and Prosperity weighted-average dumping margin and cash deposit Steels, Netherlands, B.V., and Uttam Galva Steels Tieh Enterprise Co., Ltd., to be affiliated and treated rate. (BVI) Limited to be affiliated and treated them as them as a single entity. See Taiwan Final, 81 FR a single entity. See India Final, 81 FR at 35330. at 35314.
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managed fisheries off the West Coast Commerce collections currently under SUPPLEMENTARY INFORMATION: The under the Magnuson-Stevens Fishery review by OMB. subject permit is requested under the Conservation and Management act, 16 Written comments and authority of the Marine Mammal U.S.C. 1801 et seq. There are three types recommendations for the proposed Protection Act of 1972, as amended of permits: basic fishery permits for information collection should be sent (MMPA; 16 U.S.C. 1361 et seq.) and the Highly Migratory Species (HMS), within 30 days of publication of this regulations governing the taking and limited entry permits for Coastal Pelagic notice to OIRA_Submission@ importing of marine mammals (50 CFR Species (CPS), and experimental fishing omb.eop.gov or fax to (202) 395–5806. part 216). permits (EFP). The WCR Permits Office Dated: July 20, 2016. The applicant proposes to film proposes to revise one permit within the Sarah Brabson, California sea lions (Zalophus collection of information approved californianus) for a documentary film NOAA PRA Clearance Officer. under OMB Control Number 0648–0204. on animal behavior [i.e., OCEAN (BLUE Currently, under 50 CFR part 660.707, [FR Doc. 2016–17471 Filed 7–22–16; 8:45 am] PLANET II)]. Filming activities would HMS permits are issued to vessels that BILLING CODE 3510–22–P occur along the California coast and fish for HMS off or land HMS in the offshore from Point An˜ o Nuevo south to States of California, Oregon, and the Channel Islands, focusing on the DEPARTMENT OF COMMERCE Washington. Permits are issued for a 2- Monterey Bay region. Up to 1,000 year term and remain valid until the National Oceanic and Atmospheric California sea lions would be first date of renewal. The Inter- Administration approached for filming from land, American Tropical Tuna Commission vessel, and underwater (snorkelers or (IATTC) adopted amended Resolution RIN 0648–XE664 scuba divers). In addition, up to 1,000 C–11–06 which requires a vessel on the long-beaked common dolphins IATTC regional vessel registry to add a Marine Mammals; File No. 20481 (Delphinus capensis) and 1,000 short- photograph of the vessel showing its beaked common dolphins (D. delphis) AGENCY: National Marine Fisheries may be incidentally harassed and filmed identifying vessel markings. NMFS Service (NMFS), National Oceanic and during operations. Filming would occur proposed to revise OMB Control Atmospheric Administration (NOAA), August 2016 through March 2017, Number 0648–0204 to require new and Commerce. renewing applicants to submit a vessel although the key filming period is photo with their application. Owners ACTION: Notice; receipt of application. expected to be mid-August to early/mid- can email or mail photographs to the SUMMARY: Notice is hereby given that September. The permit is requested for Long Beach Permits Office, which in the BBC Natural History Unit, 23 a one year period. turn will be submitted to the IATTC Whiteladies Road, Bristol BS8 2LR, In compliance with the National vessel database manager. Online United Kingdom, has applied in due Environmental Policy Act of 1969 (42 submission option is expected to be form for a permit to conduct commercial U.S.C. 4321 et seq.), an initial available through the National Permits and educational photography of determination has been made that the System (NPS) by 2016 year-end. California sea lions (Zalophus activity proposed is categorically NMFS estimates this revision could californianus). excluded from the requirement to affect up to 1639 respondents, which is prepare an environmental assessment or the total number of permitted HMS DATES: Written, telefaxed, or email environmental impact statement. vessels. Currently, HMS renewal forms comments must be received on or before Concurrent with the publication of are mailed to permit holders within 60 August 24, 2016. this notice in the Federal Register, days prior to expiration. To reduce the ADDRESSES: These documents are NMFS is forwarding copies of the expected burden from photo available upon written request or by application to the Marine Mammal submission, pre-filled renewal forms appointment in the Permits and Commission and its Committee of with basic data will substitute the Conservation Division, Office of Scientific Advisors. current renewal application. Forms can Protected Resources, NMFS, 1315 East- Dated: July 19, 2016. be completed by signing and dating a West Highway, Room 13705, Silver Donna S. Wieting, statement of acknowledgement that all Spring, MD 20910; phone (301) 427– Director, Office of Protected Resources, current information is correct. 8401; fax (301) 713–0376. National Marine Fisheries Service. The basic information collected from Written comments on this application [FR Doc. 2016–17402 Filed 7–22–16; 8:45 am] applicants will remain the same. There should be submitted to the Chief, will be minimal expected public burden Permits and Conservation Division, at BILLING CODE 3510–22–P to submit photographs, which will not the address listed above. Comments may apply after the initial photo is also be submitted by facsimile to (301) DEPARTMENT OF COMMERCE submitted. There will be no additional 713–0376, or by email to burden beyond the estimated [email protected]. Please National Oceanic and Atmospheric application processing time or include File No. 20481 in the subject Administration recordkeeping/reporting costs. line of the email comment. Affected Public: Business or other for- Those individuals requesting a public RIN 0648–XE747 profit organizations; individuals or hearing should submit a written request households. to the Chief, Permits and Conservation Caribbean Fishery Management Frequency: Biannually and on Division at the address listed above. The Council; Public Meeting request should set forth the specific occasion. AGENCY: National Marine Fisheries reasons why a hearing on this Respondent’s Obligation: Required to Service (NMFS), National Oceanic and application would be appropriate. obtain or retain benefits. Atmospheric Administration (NOAA), This information collection request FOR FURTHER INFORMATION CONTACT: Rosa Commerce. may be viewed at reginfo.gov. Follow Gonza´lez or Jennifer Skidmore, (301) ACTION: Notice of a public meeting. the instructions to view Department of 427–8401.
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SUMMARY: The Caribbean Fishery Special Accommodations A draft agenda for the upcoming IWC Management Council’s Scientific and These meetings are physically meeting will be posted on the IWC Statistical Committee (SSC) will hold a accessible to people with disabilities. Secretariat’s Web site at http:// three-day meeting. For more information or request for sign www.iwc.int. NOAA will a hold public meeting to DATES: The meetings will be held on language interpretation and other discuss the tentative U.S. positions for August 17–19, 2016. auxiliary aids, please contact Mr. the October 2016 IWC meeting in ADDRESSES: The meetings will be held at Miguel A. Rolo´n, Executive Director, Slovenia. Because the NOAA public ˜ Caribbean Fishery Management Council, the Council Office: 270 Munoz Rivera meeting will address U.S. positions, the ˜ Avenue, Suite 401, San Juan, Puerto 270 Munoz Rivera Avenue, Suite 401, substance of the meeting must be kept Rico. San Juan, Puerto Rico, 00918–1903, confidential. Any U.S. citizen with an telephone (787) 766–5926, at least 5 FOR FURTHER INFORMATION CONTACT: identifiable interest in U.S. whale Caribbean Fishery Management Council, days prior to the meeting date. conservation policy may participate, but 270 Mun˜ oz Rivera Avenue, Suite 401, Dated: July 19, 2016. NOAA reserves the authority to inquire San Juan, Puerto Rico 00918–1903, Tracey L. Thompson, about the interests of any person who telephone (787) 766–5926. Acting Deputy Director, Office of Sustainable appears at the meeting and to determine SUPPLEMENTARY INFORMATION: The Fisheries, National Marine Fisheries Service. the appropriateness of that person’s Caribbean Fishery Management [FR Doc. 2016–17450 Filed 7–22–16; 8:45 am] participation. In particular, persons who Council’s Scientific and Statistical BILLING CODE 3510–22–P represent foreign interests may not Committee (SSC) will hold a three-day attend. Persons deemed by NOAA to be meeting to discuss the items contained ineligible to attend will be asked to in the following agenda: DEPARTMENT OF COMMERCE leave the meeting. These stringent measures are necessary to protect the —Call to Order National Oceanic and Atmospheric confidentiality of U.S. negotiating —Adoption of Agenda Administration positions. —Island Based Fishery Management The October 3, 2016, meeting will be RIN 0648–XE704 Plans (IBFMPs) held in the NOAA Science Center —Review Goals and Objectives of the Room, 1301 East-West Highway, Silver IBFMPs International Whaling Commission; 66th Meeting; Announcement of Public Spring, MD 20910. Photo identification —Finalize Action 1: Species to is required to enter the building. include for federal management in Meeting Special Accommodations each IBFMP AGENCY: National Marine Fisheries —Recommendations to the Caribbean Service (NMFS), National Oceanic and The meeting is physically accessible Fishery Management Council Atmospheric Administration (NOAA), to people with disabilities. Requests for (CFMC) Commerce. sign language interpretation or other —Review/Finalize Action 2: Review ACTION: Notice of public meeting. auxiliary aids should be directed to Consolidated List of Stocks and Jordan Carduner, jordan.carduner@ Stock Complexes/Species SUMMARY: This notice announces the noaa.gov or 301–427–8483, by Complexes—NMFS Southeast date, time, and location of the public September 19, 2016. Regional Office (SERO) Update meeting to be held prior to the 66th Dated: July 19, 2016. —Recommendations to CFMC International Whaling Commission John Henderschedt, —Review Action 3: Reference Points (IWC) meeting. —Update SEDAR 46 US Caribbean Director, Office of International Affairs and DATES: The public meeting will be held Seafood Inspection Program, National Marine Data Limited Species—Southeast October 3, 2016, at 9:30 a.m. Fisheries Service. Fisheries Science Center (SEFSC) —Acceptable Biological Catch (ABC) ADDRESSES: The public meeting will be [FR Doc. 2016–17452 Filed 7–22–16; 8:45 am] Control Rule Work Group Report held in the NOAA Science Center BILLING CODE 3510–22–P —Brief review of ABC Control Rule Room, 1301 East-West Highway, Silver Spring, MD 20910. —Examples of ABC Control Rules: DEPARTMENT OF COMMERCE South Atlantic, Gulf of Mexico, FOR FURTHER INFORMATION CONTACT: Western Pacific Councils Jordan Carduner at jordan.carduner@ National Oceanic and Atmospheric —Discussion on tiers ABC Control noaa.gov or 301–427–8483. Administration Rule SUPPLEMENTARY INFORMATION: The —Evaluation of components of Secretary of Commerce is responsible RIN 0648–XE748 uncertainty for discharging the domestic obligations Caribbean Fishery Management —Potential guidance coming out of of the United States under the Council; Public Meeting data poor models (Overfishing International Convention for the Limit (OFL) and ABC advice) Regulation of Whaling, 1946. The U.S. AGENCY: National Marine Fisheries —Review U.S. Caribbean landings IWC Commissioner has responsibility Service (NMFS), National Oceanic and data (commercial and recreational) for the preparation and negotiation of Atmospheric Administration (NOAA), for entire historical series U.S. positions on international issues Commerce. —Recommendations to the SSC from concerning whaling and for all matters ACTION: Notice of a public meeting. the ABC Working Group involving the IWC. The U.S. IWC —Recommendations to the CFMC on Commissioner is staffed by the SUMMARY: The Caribbean Fishery ABC Control Rule Department of Commerce and assisted Management Council’s ABC Control —Consider Action 4: Framework by the Department of State, the Rule Group will hold a two-day Procedures for the IBFMP Department of the Interior, the Marine meeting. —Finalize 5-year CFMC—Other Mammal Commission, and other U.S. DATES: The meetings will be held on Business Government agencies. August 15 and 16, 2016.
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ADDRESSES: The meetings will be held at • Review landings data (commercial DEPARTMENT OF DEFENSE the Caribbean Fishery Management and recreational) for entire historical Council Headquarters, 270 Mun˜ oz series Office of the Secretary Rivera Avenue, Suite 401, San Juan, • Recommendations to the SSC [Transmittal No. 16–47] Puerto Rico 00918. • Other Business FOR FURTHER INFORMATION CONTACT: 36(b)(1) Arms Sales Notification Caribbean Fishery Management Council, Special Accommodations 270 Mun˜ oz Rivera Avenue, Suite 401, AGENCY: Department of Defense, Defense San Juan, Puerto Rico 00918–1903, These meetings are physically Security Cooperation Agency. telephone: (787) 766–5926. accessible to people with disabilities. ACTION: Notice. For more information or request for sign SUPPLEMENTARY INFORMATION: language interpretation and other SUMMARY: The Department of Defense is The Caribbean Fishery Management auxiliary aids, please contact Mr. publishing the unclassified text of a Council’s ABC Control Rule Group will ´ section 36(b)(1) arms sales notification. hold a two-day meeting to discuss the Miguel A. Rolon, Executive Director, Caribbean Fishery Management Council, This is published to fulfill the items contained in the following requirements of section 155 of Public 270 Mun˜ oz Rivera Avenue, Suite 401, agenda: Law 104–164 dated July 21, 1996. San Juan, Puerto Rico, 00918–1903, • Call to Order FOR FURTHER INFORMATION CONTACT: • telephone (787) 766–5926, at least 5 Adoption of Agenda days prior to the meeting date. Chandelle K. Parker, DSCA/LMO, (703) • Brief Review of ABC Control Rule 697–9027. • Examples of ABC Control Rules: Dated: July 19, 2016. The following is a copy of a letter to South Atlantic, Gulf of Mexico, Tracey L. Thompson, the Speaker of the House of Western Pacific Acting Deputy Director, Office of Sustainable Representatives, Transmittal 16–47 with • Discussion on tiers ABC Control Rule Fisheries, National Marine Fisheries Service. attached Policy Justification and • Evaluation of components of [FR Doc. 2016–17451 Filed 7–22–16; 8:45 am] Sensitivity of Technology. uncertainty BILLING CODE 3510–22–P Dated: July 20, 2016. • Potential guidance coming out of data Aaron Siegel, poor models (OFL advice to ABC SSC Alternate OSD Federal Register Liaison advice to CFMC) Officer, Department of Defense.
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Transmittal No. 16–47 (iii) Description and Quantity or (iv) Military Department: Navy (ATA Quantities of Articles or Services under Notice of Proposed Issuance of Letter of and ASZ) Consideration for Purchase: Offer Pursuant to Section 36(b)(1) of the (v) Prior Related Cases, if any: JA–P– Arms Export Control Act, as amended Major Defense Equipment (MDE): Up ARH—MAR 11, $32,149,836; JA–P– to two hundred forty-six (246) Standard AQO—FEB 08, $36,133,478; JA–P– (i) Prospective Purchaser: Government Missiles (SM–2), Block IIIB Vertical AQE—AUG 06, $25,932,921; JA–P– of Japan Launching Tactical All-Up Rounds, AQF—AUG 06, $32,030,680; JA–P– RIM–66M–09 (ii) Total Estimated Value: ANW—SEP 05, $46,147,937; JA–P– Non-MDE: This request also includes ANX—SEP 05, $30,207,196; JA–P– Major Defense Equipment* .. $685 million the following Non-MDE: MK 13 MOD 0 Other ...... $136 million APS—SEP 05, $24,923,134; JA–P– Vertical Launching System Canisters, APT—NOV 04, $25,041,269; JA–P– TOTAL ...... $821 million operator manuals, U.S. Government and APU—NOV 04, $18,297,591; JA–P– contractor engineering, technical and APV—NOV 04, $13,328,470; JA–P– logistics support services.
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APG—JUL 03, $26,545,311; JA–P– will have no difficulty absorbing these 5. All defense articles and services APP—JUL 03, $15,581,478 new missiles into its armed forces. listed in this transmittal have been (vi) Sales Commission, Fee, etc. Paid, The proposed sale of this equipment authorized for release and export to the Offered, or Agreed to be Paid: None and support will not alter the basic Government of Japan. (vii) Sensitivity of Technology military balance in the region. [FR Doc. 2016–17476 Filed 7–22–16; 8:45 am] The principal contractors will be Contained in the Defense Article or BILLING CODE 5001–06–P Defense Services Proposed to be Sold: Raytheon Missile Systems Company, See Annex attached Tucson, Arizona; Raytheon Company, (viii) Date Report Delivered to Camden, Arkansas; and BAE of DEPARTMENT OF DEFENSE Congress: 15 July 2016 Minneapolis and Aberdeen, South * as defined in Section 47(6) of the Dakota. There are no known offset Office of the Secretary agreements proposed in connection Arms Export Control Act [Docket ID: DOD–2016–OS–0078] with this potential sale. POLICY JUSTIFICATION Implementation of this sale will not Proposed Collection; Comment Japan—SM–2 Block IIIB Standard require the assignment of any U.S. or Request Missiles contractor representatives to Japan. There will be no adverse impact on AGENCY: Office of the Under Secretary of The Government of Japan has U.S. defense readiness as a result of this Defense for Personnel and Readiness, requested a possible sale of up to two proposed sale. DoD. hundred forty-six (246) Standard Missile (SM–2), Block IIIB Vertical Transmittal No. 16–47 ACTION: Notice. Launching Tactical All-Up Rounds, Notice of Proposed Issuance of Letter of SUMMARY: In compliance with the RIM–66M–09. This request also Offer Pursuant to Section 36(b)(1) of the Paperwork Reduction Act of 1995, the includes MK 13 MOD 0 Vertical Arms Export Control Act Office of the Under Secretary of Defense Launching System Canisters, operator Annex Item No. vii for Personnel and Readiness announces manuals and technical documentation, a proposed public information U.S. Government and contractor (vii) Sensitivity of Technology: collection and seeks public comment on engineering, technical and logistics 1. A completely assembled Standard the provisions thereof. Comments are support services. The total estimated Missile–2 (SM–2) Block IIIB with or invited on: Whether the proposed value of Major Defense Equipment without a conventional warhead, collection of information is necessary (MDE) is $685 million. The total overall whether a tactical, telemetry or inert for the proper performance of the estimated value is $821 million. (training) configuration, is classified functions of the agency, including Japan is one of the major political and CONFIDENTIAL. Missile component whether the information shall have economic powers in East Asia and the hardware includes: Guidance Section practical utility; the accuracy of the Western Pacific, a key democratic (classified CONFIDENTIAL), Target agency’s estimate of the burden of the partner of the United States in ensuring Detection Device (classified proposed information collection; ways regional peace and stability, a close CONFIDENTIAL), Warhead to enhance the quality, utility, and coalition ally in regional contingency (UNCLASSIFIED), Rocket Motor clarity of the information to be operations, and a close cooperative and (UNCLASSIFIED), Steering Control collected; and ways to minimize the international exchange agreement Section (UNCLASSIFIED), Safe and burden of the information collection on partner. It is vital to U.S. national Arming Device (UNCLASSIFIED), respondents, including through the use interests that Japan develops and Autopilot Battery Unit (classified of automated collection techniques or maintains a strong and ready self- CONFIDENTIAL), and if telemetry other forms of information technology. defense capability. This transaction is missiles, AN/DKT–71 Telemeters DATES: Consideration will be given to all consistent with U.S. foreign policy and (UNCLASSIFIED). comments received by September 23, national security objectives and the 2. SM–2 operator and maintenance 2016. 1960 Treaty of Mutual Cooperation and documentation is usually Security. CONFIDENTIAL. Shipboard operation/ ADDRESSES: You may submit comments, These SM–2 Block IIIB missiles will firing guidance is generally identified by docket number and title, be used for anti-air warfare at sea. Japan CONFIDENTIAL. Pre-firing missile by any of the following methods: currently fields four Kongo-class and assembly/pedigree information is • Federal eRulemaking Portal: http:// two Atago-class destroyers, all of which UNCLASSIFIED. www.regulations.gov. Follow the are equipped with the Aegis Combat 3. If a technologically advanced instructions for submitting comments. system and SM–2 Block IIIA/IIIB adversary were to obtain knowledge of • Mail: Department of Defense, Office missiles. Japan is also building two new the specific hardware and software of the Deputy Chief Management Aegis-equipped destroyers based on a elements, the information could be used Officer, Directorate for Oversight and modified Atago-class hull. The SM–2 to develop countermeasures that might Compliance, 4800 Mark Center Drive, Block IIIB missiles proposed in this sale reduce weapon system effectiveness or Mailbox #24, Alexandria, VA 22350– will be used on these two future be used in the development of a system 1700. destroyers as well as supplementing with similar or advanced capabilities. Instructions: All submissions received Japan’s missile inventory. Combined 4. A determination has been made must include the agency name, docket with the Aegis combat system, the SM– that Japan can provide substantially the number and title for this Federal 2 Block IIIB provides significantly same degree of protection for the Register document. The general policy enhanced area defense capabilities over sensitive technology being released as for comments and other submissions critical East Asian and Western Pacific the U.S. Government. This sale is from members of the public is to make air and sea-lines of communication. necessary in furtherance of the U.S. these submissions available for public Japan has two Intermediate-Level foreign policy and national security viewing on the Internet at http:// Maintenance Facilities capable of objectives outlined in the Policy www.regulations.gov as they are maintaining the SM–2 Block IIIB and Justification. received without change, including any
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personal identifiers or contact up-to-date eligibility and access into JPAS on over 1,000,000 contract information. information on all personnel (military, employees annually. Any associated forms for this civilian and contractor personnel) Dated: July 20, 2016. collection may be located within this adjudicated by the DoD. The DoD Aaron Siegel, same electronic docket and downloaded Adjudicators and Security Managers are for review/testing. Follow the also able to update eligibility and access Alternate OSD Federal Register Liaison Officer, Department of Defense. instructions at http:// levels of military, civilian and www.regulations.gov for submitting contractor personnel nominated for [FR Doc. 2016–17493 Filed 7–22–16; 8:45 am] comments. Please submit comments on access to sensitive DoD information. BILLING CODE 5001–06–P any given form identified by docket Affected Public: Individuals or number, form number, and title. Households. DEPARTMENT OF DEFENSE FOR FURTHER INFORMATION CONTACT: To Annual Burden Hours: 333,333. request more information on this Number of Respondents: 500,000. Responses per Respondent: 2. Office of the Secretary proposed information collection or to Annual Responses: 1,000,000. obtain a copy of the proposal and Average Burden per Response: 20 [Transmittal No. 16–40] associated collection instruments, minutes. please write to the Office of the Joint Frequency: On occasion. 36(b)(1) Arms Sales Notification Personnel Adjudication System, ATTN: The Joint Personnel Adjudication Defense Manpower Data Center (DMDC) System (JPAS) is a DoD personnel AGENCY: Defense Security Cooperation Boyers, ATTN: JPAS PM, P.O. Box 168, security system and is the authoritative Agency, Department of Defense. Boyers, PA 16020–0168. source for clearance information ACTION: Notice. SUPPLEMENTARY INFORMATION: resulting in access determinations to Title; Associated Form; and OMB sensitive/classified information and SUMMARY: The Department of Defense is Number: Joint Personnel Adjudication facilities. Collection and maintenance of publishing the unclassified text of a System (JPAS); OMB Control Number personal data in JPAS is required to section 36(b)(1) arms sales notification. 0704–0496. facilitate the initiation, investigation This is published to fulfill the Needs and Uses: JPAS requires and adjudication of information relevant requirements of section 155 of Public personal data collection to facilitate the to DoD security clearances and Law 104–164 dated July 21, 1996. initiation, investigation and employment suitability determinations FOR FURTHER INFORMATION CONTACT: adjudication of information relevant to for active duty military, civilian Chandelle K. Parker, DSCA/LMO, (703) DoD security clearances and employees, and contractors requiring 697–9027. employment suitability determinations such credentials. Facility Security The following is a copy of a letter to for active duty military, civilian Officers (FSOs) working in private the Speaker of the House of employees and contractors requiring companies that contract with DoD and Representatives, Transmittal 16–40 with such credentials. As a Personnel who need access to the JPAS system to attached Policy Justification and Security System it is the authoritative update security-related information Sensitivity of Technology. source for clearance information about their company’s employees must resulting in accesses determinations to complete DD Form 2962. Once granted Dated: July 20, 2016. sensitive/classified information and access, the FSOs maintain employee Aaron Siegel, facilities. Specific uses include: personal information, submit requests Alternate OSD Federal Register Liaison Facilitation for DoD Adjudicators and for investigations, and submit other Officer, Department of Defense. Security Managers to obtain accurate relevant personnel security information BILLING CODE 5001–06–P
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BILLING CODE 5001–06–C (iii) Description and Quantity or eight (8) OA–8697 A/ARD Direction Transmittal No. 16–40 Quantities of Articles or Services Under Finding Groups, eight (8) AN/ARN– Consideration for Purchase: 118(V) NAV Receivers, eight (8) AN/ Notice of Proposed Issuance of Letter of Major Defense Equipment (MDE): ARN–146 On Top Position Indicators, Offer Pursuant to Section 36(b)(1) of the Twelve (12) T–700 GE 401C engines sixteen (16) IP–1544A/ASQ–200 Arms Export Control Act, as amended (ten (10) installed and two (2) spares) Horizontal Situation Video Displays (i) Prospective Purchaser: Government Non-MDE: (HSVD), eight (8) AN/ARC–174A (V)2 of Israel This request also includes the HF Radios, sixteen (16) AN/ARC182(V) UHF/UHF Radios, eight (8) PIN 70600– (ii) Total Estimated Value: following non-MDE items: eight (8) AN/ APN–194(V) Radar Altimeters, eight (8) 81010–011 Communication System Major Defense Equipment * $55 million AN/APN–217A Doppler Radar Controllers, eight (8) GAU–16 50 Caliber Other ...... $245 million Navigation Sets, eight (8) AN/ARN–15l Machine Guns, eight (8) M–60D/M–240 (V)2 Global Positioning Systems, eight Machine Guns, eight (8) Internal TOTAL ...... $300 million (8) AN/APX–100(V) Identification Auxiliary Fuel Tanks, sixteen (16) Friend or Foe (IFF) Transponder Sets, External Auxiliary Fuel Tanks, and
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eight (8) C–11822/AWQ Controllers, Israel has been approved to receive SAASM provides a Space-based Global Armament System. Also included are eight (8) SH–60F Sea Hawk Helicopters Navigation Satellite System (GNSS) that spares and repair parts, support and test via the Excess Defense Articles (EDA) provides reliable location and time equipment, communication equipment, Program under a separate notification. information in all weather at all times ferry support, publications and That separate notification included only and anywhere on or near the Earth technical documentation, U.S. the SH–60 airframes, thus this when the signal is unobstructed line of Government and contractor engineering, transmittal includes all the major site to four or more GPS satellites. technical and logistics support services, components and customer-unique 3. The AN/ARC–182–electronic and other related elements of logistical requirements requested to supplement counter-countermeasures (ECCM) Radio and program support. the EDA grant transfer. is a combined Very High Frequency (iv) Military Department: Navy Israel has purchased four new frigates (VHF)/Ultra High Frequency (UHF) (v) Prior Related Cases, if any: None to secure the Leviathan Natural Gas military communications system (vi) Sales Commission, Fee, etc., Paid, Field. The SH–60F helicopters will be designed for all types of fixed-wing Offered, or Agreed To Be Paid: None used onboard these new frigates to aircraft and helicopters. Small and light (vii) Sensitivity of Technology patrol and protect these gas fields as enough to be especially attractive for Contained in the Defense Article or well as other areas under threat. installation in the lighter aircraft Defense Services Proposed To Be Sold: The proposed sale will improve classes, it covers the frequency bands See Annex attached. Israel’s capability to meet current and from 30 to 88 MHz in FM, 116 to 156 (viii) Date Report Delivered to future threats. The SH–60F Sea-Hawk MHz in AM, 156 to 174 MHz in FM and Congress: 5 July 2016 Helicopters along with the parts, for the UHF band 225 to 400 MHz in * as defined in Section 47(6) of the systems, and support enumerated in this both AM and FM modes. Additionally, Arms Export Control Act. notification will provide the capability a receiver-only facility covering the POLICY JUSTIFICATION to perform troop/transport deployment, band 108 to 116 MHz is provided for communications relay, gunfire support, navigation purposes. Channel spacing Israel—Excess SH–60F Sea-Hawk and search and rescue. Secondary Helicopter equipment and support: throughout the range is at 25 KHz missions include vertical intervals. The Government of Israel has replenishment, combat search and requested to procure twelve (12) T–700 4. The AN/ARC–174A (V)2 HF Radio rescue, and humanitarian missions. provides capability to transmit and GE 401C engines (ten (10) installed and Israel will use the enhanced capability two (2) spares), eight (8) AN/APN– receive on Upper Sideband (USB), as a deterrent to regional threats and to Lower Sideband (LSB), and Amplitude 194(V) Radar Altimeters; eight (8) AN/ strengthen its homeland defense. Israel APN–217A Doppler Radar Navigation Modulation (AM). will have no difficulty absorbing this 5. A determination has been made Sets; eight (8) AN/ARN–15l (V)2 Global equipment into its armed forces. Positioning Systems; eight (8) AN/APX– that Government of Israel can provide The proposed sale of this equipment substantially the same degree of 100(V) Identification Friend or Foe (IFF) and support will not alter the basic Transponder Sets; eight (8) OA–8697 A/ protection for the sensitive technology military balance in the region. being released as the U.S. Government. ARD Direction Finding Groups; eight (8) The principal contractors will be This sale is necessary in furtherance of AN/ARN–118(V) NAV Receivers; eight Science and Engineering Services, LLC, the U.S. foreign policy and national (8) AN/ARN–146 On Top Position Huntsville, Alabama, and General security objectives outlined in the Indicators; sixteen (16) IP–1544A/ASQ– Electric (GE) of Lynn, Massachusetts. Policy Justification. 200 Horizontal Situation Video Displays There are no known offset agreements 6. All defense articles and services (HSVD); eight (8) AN/ARC–174A (V)2 proposed in connection with this listed in this transmittal have been HF Radios; sixteen (16) AN/ARC182(V) potential sale. UHF/UHF Radios; eight (8) PIN 70600– Implementation of this proposed sale authorized for release and export to 81010–011 Communication System will require the assignment of Israel. Controllers; eight (8) GAU–16 50 Caliber additional U.S. Government and/or [FR Doc. 2016–17466 Filed 7–22–16; 8:45 am] Machine Guns; eight (8) M–60D/M–240 contractor representatives to Israel. BILLING CODE 5001–06–P Machine Guns; eight (8) Internal Auxiliary Fuel Tanks; sixteen (16) Transmittal No. 16–40 External Auxiliary Fuel Tanks; and Notice of Proposed Issuance of Letter of DEPARTMENT OF DEFENSE eight (8) C–11822/AWQ Controllers, Offer Pursuant to Section 36(b)(1) of the Armament System. Also included are Arms Export Control Act Office of the Secretary spares and repair parts, support and test Annex [Transmittal No. 16–27] equipment, communication equipment, ferry support, publications and Item No. vii 36(b)(1) Arms Sales Notification technical documentation, U.S. (vii) Sensitivity of Technology: Government and contractor engineering, 1. The U.S. Navy primarily employed AGENCY: Department of Defense, Defense technical and logistics support services, the SH–60F as an aircraft carrier based Security Cooperation Agency. and other related elements of logistical anti-submarine warfare aircraft and a ACTION: Notice. and program support. The estimated search and rescue support aircraft cost is $300 million. during carrier flight operations. Unless SUMMARY: The Department of Defense is This proposed sale will contribute to otherwise noted below, SH–60F publishing the unclassified text of a the foreign policy and national security hardware and support equipment, test section 36(b)(1) arms sales notification. of the United States by helping to equipment and maintenance spares are This is published to fulfill the improve the security of a strategic UNCLASSIFIED. requirements of section 155 of Public regional partner, which has been, and 2. Global Positioning System (GPS)/ Law 104–164 dated July 21, 1996. continues to be, an important force for Precise Positioning Service (PPS)/ FOR FURTHER INFORMATION CONTACT: political stability and economic progress Selective Availability Anti-spoofing Chandelle K. Parker, DSCA/LMO, (703) in the Middle East. Module (SAASM). The GPS/PPS/ 697–9027.
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The following is a copy of a letter to attached Policy Justification and Dated: July 20, 2016. the Speaker of the House of Sensitivity of Technology. Aaron Siegel, Representatives, Transmittal 16–27 with Alternate OSD Federal Register Liaison Officer, Department of Defense.
DEFENSE SECURITY COOPERATION AGENCY
I 5
Transmittal No. 16–27 Other ...... $45 million Seven thousand seven hundred (7,700) Mk–84/BLU–117 bombs Notice of Proposed Issuance of Letter of TOTAL ...... $785 million Offer Pursuant to Section 36(b)(1) of the Five thousand nine hundred forty Arms Export Control Act, as amended (iii) Description and Quantity or (5,940) GBU–12 guidance kits Quantities of Articles or Services under (i) Prospective Purchaser: United Arab Consideration for Purchase: Five thousand nine hundred forty (5,940) Mk–82/BLU–111 bombs Emirates Major Defense Equipment (MDE): (ii) Total Estimated Value: Seven thousand seven hundred Five hundred (500) GBU–31V1 Major Defense Equipment * $740 million (7,700) GBU–10 guidance kits guidance kits
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Five hundred (500) Mk–84/BLU–117 to meet current and future threats. The entered into the guidance control unit. bombs UAE continues to provide host-nation After weapon release, movable tail fins Five hundred (500) GBU–31V3 support of vital U.S. forces stationed at guide the weapon to the target guidance kits Al Dhafra Air Base and plays a vital role coordinates. In addition to the tail kit, Five hundred (500) BLU–109 bombs in supporting U.S. regional interests. other elements in the overall system that Fourteen thousand six hundred forty The UAE was a valued partner and are essential for successful employment (14,640) FMU–152 fuzes active participant in OPERATION include: Access to accurate target Non-MDE: IRAQI FREEDOM (OIF), OPERATION coordinates, INS/GPS capability, and Also included is munitions support. ENDURING FREEDOM (OEF), Operational Test and Evaluation Plan. The estimated value of this possible sale OPERATION UNIFIED PROTECTOR 2. The GBU–12 is a 500-pound laser- is $785 million. (OUP), and now is a valued partner in guided ballistic bomb (LGB). The LGB is (iv) Military Department: USAF (AAD, OIR coalition operations. a maneuverable, free-fall weapon that A02) The proposed sale of this equipment guides to a spot of laser energy reflected (v) Prior Related Cases, if any: SAA– and support will not alter the basic off of the target. The LGB is delivered $113,853,132–AUG 00, YAB– military balance in the region. like a normal general-purpose (GP) $156,304,329–AUG 02, YAC– The UAE will have no difficulties warhead and the semi-active guidance $874,241,603–MAR 08, AAC– absorbing these munitions into its corrects for many of the normal errors $13,467,991–JUN 11, AAD– inventory. inherent in any delivery system. Laser $11,827,867–JAN 15, AAE– The munitions will be sourced designation for the weapon can be $130,000,000–OCT 15, AAF– through procurement and the contractor provided by a variety of laser target $310,000,000–JAN 16 determined during contract markers or designators. (vi) Sales Commission, Fee, etc., Paid, negotiations. There are no known offset a. The LGB consists of a laser Offered, or Agreed to be Paid: None agreements proposed in connection guidance kit, a computer control group (vii) Sensitivity of Technology with this potential sale. (CCG), and a warhead specific Air Foil Contained in the Defense Article or There are no additional U.S. Group (AFG), that attach to the nose and Defense Services Proposed to be Sold: Government or contractor tail of Mk–82 or BLU–111 bomb bodies. See Attached Annex. representatives anticipated to be (viii) Date Report Delivered to The overall weapon is CONFIDENTIAL. stationed in the UAE as a result of this 3. The GBU–10 is a 2,000-pound Congress: 15 July 2016 potential sale. laser-guided ballistic bomb (LGB). The * as defined in Section 47(6) of the There will be no adverse impact on LGB is a maneuverable, free-fall weapon Arms Export Control Act. U.S. defense readiness as a result of this that guides to a spot of laser energy Policy Justification proposed sale. reflected off of the target. The LGB is delivered like a normal GP United Arab Emirates—Munitions, Transmittal No. 16–27 warhead and the semi-active guidance Sustainment, and Support Notice of Proposed Issuance of Letter of corrects for many of the normal errors The Government of the United Arab Offer Pursuant to Section 36(b)(1) of the inherent in any delivery system. Laser Emirates (UAE) requests approval to Arms Export Control Act, as amended designation for the weapon can be procure seven thousand seven hundred Annex provided by a variety of laser target (7,700) GBU–10 guidance kits with markers or designators. seven thousand seven hundred (7,700) Item No. vii a. The LGB consists of a laser Mk–84/BLU–117 bombs, five thousand (vii) Sensitivity of Technology: guidance kit, a CCG, and a warhead nine hundred forty (5,940) GBU–12 1. The GBU–31 2,000-pound Joint AFG that attach to the nose and tail of guidance kits with five thousand nine Direct Attack Munition (JDAM) is a Mk–84 or BLU–117 bomb body. The hundred forty (5,940) Mk–82/BLU–111 guidance tail kit that converts unguided overall weapon is CONFIDENTIAL. bombs, five hundred (500) GBU–31V1 free-fall bombs into accurate, Global 4. The FMU–152 is a multi-delay, guidance kits with five hundred (500) Positioning System (GPS) guided multi-arm fuze and proximity sensor Mk–84/BLU–117 bombs, five hundred adverse weather ‘‘smart’’ munitions. compatible with GP blast, (500) GBU–31V3 guidance kits with five With the addition of a new tail section fragmentation, and hardened-target hundred (500) BLU–109 bombs, and that contains an inertial navigational penetrator warheads. The fuze is cockpit fourteen thousand six hundred forty system (INS) and a GPS guidance selectable in-flight (prior to release) (14,640) FMU–152 fuzes. This sale also control unit, JDAM improves the when used with JDAM weapons. The includes non-MDE munitions items. accuracy of unguided, general-purpose FMU–152 interfaces with the GBU–10, The total estimated value of MDE is bombs in an all-weather condition. GBU–12, and GBU–31 weapons among $740 million. The overall total JDAM can be launched from very low to others. The hardware is estimated value is $785 million. high altitudes in a dive, toss and loft, or UNCLASSIFIED. This proposed sale contributes to the in straight and level flight with an on- 5. A determination has been made foreign policy and national security of axis or off-axis delivery. JDAM enables that the UAE can provide substantially the United States by helping the UAE multiple weapons to be directed against the same degree of protection for the remain an active member of the single or multiple targets on a single sensitive technology being released as OPERATION INHERENT RESOLVE pass. the U.S. Government. (OIR) coalition working to defeat the a. The GBU–31V1 contains the 6. This sale is necessary in Islamic State in Iraq and the Levant standard 2,000-pound BLU–117 or Mk– furtherance of the U.S. foreign policy (ISIL). These munitions will sustain the 84 bomb body. The GBU–31V3 contains and national security objectives UAE’s efforts and support a key partner the 2,000-pound BLU–109 penetrator outlined in the Policy Justification. that remains an important force for bomb body. The highest classification Moreover, the benefits to be derived political stability and economic progress for the JDAM, its components, and from this sale outweigh the potential in the Middle East. technical data is SECRET. damage that could result if the sensitive The proposed sale provides the UAE b. Weapon accuracy depends on target technology were revealed to additional precision guided munitions coordinates and present position as unauthorized persons.
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7. All defense articles and services final EA is available in hardcopy at the of state and county environmental listed in this transmittal have been Mountain View Public Library, located regulations for the failure to be properly authorized for release and export to the at 585 Franklin Street, Mountain View, closed. Implementation of the No UAE. California 94041, Phone: (650) 903–6337 Action Alternative would leave the [FR Doc. 2016–17483 Filed 7–22–16; 8:45 am] or electronically at http://www.dla.mil/ DFSP Moffett Field facilities in a BILLING CODE 5001–06–P Portals/104/Documents/Energy/ caretaker status. The No Action Publications/E_Moffett_FinalEA_ Alternative would not meet the purpose 160713.pdf?ver=2016-07-13-120724- of and need for the Proposed Action. DEPARTMENT OF DEFENSE 920. Potential Environmental Impacts: No Purpose and Need for Action: The significant effects on environmental Office of the Secretary purpose of the Proposed Action is to resources would be expected from the reduce environmental risks associated Proposed Action. Potential insignificant, Notice of Availability (NOA) for a with the five closed USTs; address two adverse effects on air quality, biological Finding of No Significant Impact Notices of Violation that DLA Energy, resources, geology, water resources, (FONSI) for the Environmental received in March 2015 from the State hazardous materials and waste, noise, Assessment (EA) Addressing the of California Water Resources Control and transportation could be expected. Closure of Former Defense Fuel Board and County of Santa Clara No effects on cultural resources, Support Point (DFSP) Moffett Field regarding improper UST maintenance; environmental justice, land use, public Located in Santa Clara County, and eliminate aging infrastructure no health and safety, socioeconomics, California longer required to meet the Department recreation, utilities, or visual resources of Defense mission. DLA Energy AGENCY: Defense Logistics Agency would be expected. Details of the received the Notices of Violation based (DLA), DoD. environmental consequences are upon the State of California Water ACTION: Notice of Availability (NOA) for discussed in the EA, which is hereby Resources Control Board and County of incorporated by reference. a Finding of No Significant Impact Santa Clara’s determination that DLA is (FONSI) for the Environmental Determination: Based on the analysis not maintaining the five USTs in of the Proposed Action’s potential Assessment (EA) addressing the Closure compliance with California and Santa of Former Defense Fuel Support Point impacts to the human environment from Clara County codes after the USTs were routine operations, it was concluded (DFSP) Moffett Field located in Santa emptied and cleaned in 2005. The Clara County, CA. that the Proposed Action would Proposed Action is therefore also produce no significant adverse impacts. SUMMARY: On May 16, 2016, DLA necessary to resolve State of California Human environment was interpreted published a NOA in the Federal Water Resources Control Board and comprehensively to include the natural Register announcing the publication of County of Santa Clara assertions that and physical environment and the the EA addressing the Closure of DFSP DLA is not in compliance with the relationship of people with that Moffett Field in Santa Clara County, CA California Code of Regulations (CCR), environment. No significant cumulative (81 FR 30266). The EA was available for Title 23, Division 3, Chapter 16, Article effects were identified. Implementation a 30-day public comment period that 7, Underground Storage Tank of the Proposed Action will not violate ended June 15, 2016. The EA was Requirements, and Unified Facilities any Federal, state, or local laws. Based prepared as required under the National Criterion 3–460–0. DLA Energy is on the results of the analyses performed committed to closure of these tanks, as Environmental Policy Act (NEPA) of during preparation of the EA, Ms. Mary well as implementation of a phased 1969 and complies with DLA Regulation D. Miller, Director, DLA Installation closure agreement (Phase II) with the 1000.22. No comments were received Support, concludes that the Closure of Santa Clara Environmental Health during the public comment period. This DFSP Moffett Field in Santa Clara FONSI documents the decision of DLA Department. Proposed Action and Alternatives: County, CA does not constitute a major to proceed with the Closure of DFSP Under the Proposed Action, DLA Federal action significantly affecting the Moffett Field. DLA has determined that proposes to permanently close DFSP quality of the human environment the Proposed Action is not a major Moffett Field. Under this proposal the within the context of NEPA. Therefore, Federal action significantly affecting the fuel facility infrastructure would be an environmental impact statement for quality of the human environment physically disconnected, abandoned in the Proposed Action is not required. within the context of NEPA and that no place, dismantled, and/or demolished. Dated: July 20, 2016. significant impacts on the human NASA would continue to be the Aaron Siegel, environment are associated with this property owner of the parcel. The decision. Alternate OSD Federal Register Liaison Proposed Action involves the closure of Officer, Department of Defense. FOR FURTHER INFORMATION CONTACT: the five USTs and associated pipelines, [FR Doc. 2016–17504 Filed 7–22–16; 8:45 am] Stacey Christenbury at 703–767–6557 truck fill stands, high-speed aircraft BILLING CODE 5001–06–P during normal business hours Monday fueling hydrants, and related through Friday, from 8:00 a.m. to 4:30 infrastructure (e.g., manhole vaults, p.m. (EST) or by email: [email protected]. pumps, pump houses, pump pads, DEPARTMENT OF DEFENSE SUPPLEMENTARY INFORMATION: hydrants, racks, cathodic protection Cooperating Agency: National system). Office of the Secretary Aeronautics and Space Administration. Description of the No Action DLA completed an EA to address the Alternative: Under the No Action [Docket ID: DOD–2013–OS–0068] potential environmental consequences Alternative, DFSP Moffett Field’s former Proposed Collection; Comment associated with the proposed closure of fuel facilities would remain in their Request DFSP Moffett Field in Santa Clara current nonclosure status and the State County, CA. This FONSI incorporates of California Water Resources Control AGENCY: Office of the Assistant to the the EA by reference and summarizes the Board and County of Santa Clara, would Secretary of Defense for Public Affairs, results of the analyses in the EA. The continue to consider the site in violation DoD.
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ACTION: Notice. www.regulations.gov for submitting participation and whether the desired comments. Please submit comments on support is permissible and/or available. SUMMARY: In compliance with the any given form identified by docket If the forms are not provided, the review Paperwork Reduction Act of 1995, the number, form number, and title. process is greatly increased because the Office of the Assistant to the Secretary FOR FURTHER INFORMATION CONTACT: To Armed Forces must make additional of Defense for Public Affairs announces request more information on this written and telephonic inquiries with the proposed extension of a public proposed information collection or to the event sponsor. In addition, use of information collection and seeks public obtain a copy of the proposal and the forms reduces the event sponsor’s comment on the provisions thereof. associated collection instruments, preparation time because the forms Comments are invited on: Whether the please write to: The Office of the provide a detailed outline of proposed collection of information is Assistant to the Secretary of Defense for information required, eliminate the necessary for the proper performance of Public Affairs, ATTN: CPO (Adrien F. need for a detailed letter, and contain the functions of the agency, including Creecy-Starks), 1400 Defense, The concise information necessary for whether the information shall have Pentagon, Washington, DC 20301–1400, determining appropriateness of military practical utility; the accuracy of the or call the Directorate for Community support. Use of the forms is essential to agency’s estimate of the burden of the and Public Outreach at (703) 695–3845. reduce preparation and processing time, proposed information collection; ways SUPPLEMENTARY INFORMATION: increase productivity, and maximize to enhance the quality, utility, and responsiveness to the public. clarity of the information to be Title; Associated Form; and OMB collected; and ways to minimize the Number: Request for Armed Forces Dated: July 20, 2016. burden of the information collection on Participation in Public Events (Non- Aaron Siegel, respondents, including through the use Aviation), DD Form 2536 and Request Alternate OSD Federal Register Liaison of automated collection techniques or for Military Aerial Support, DD Form Officer, Department of Defense. other forms of information technology. 2535; OMB Control Number 0704–0290. [FR Doc. 2016–17457 Filed 7–22–16; 8:45 am] Needs and Uses: This information BILLING CODE 5001–06–P DATES: Consideration will be given to all collection requirement is necessary to comments received by September 23, evaluate the eligibility of events to 2016. receive Armed Forces community DEPARTMENT OF DEFENSE ADDRESSES: You may submit comments, relations support and to determine identified by docket number and title, whether requested military assets are Office of the Secretary by any of the following methods: available. • Federal eRulemaking Portal: http:// Affected Public: State, local, or tribal [Transmittal No. 16–39] www.regulations.gov. Follow the governments; Federal agencies or 36(b)(1) Arms Sales Notification instructions for submitting comments. employees; for-profit and non-profit • Mail: Department of Defense, Office institutions; and individuals or AGENCY: Defense Security Cooperation of the Deputy Chief Management households. Agency, Department of Defense. Officer, Directorate for Oversight and Annual Burden Hours: 17,850. ACTION: Notice. Compliance, 4800 Mark Center Drive, Number of Respondents: 51,000. Mailbox #24, Alexandria, VA 22350– Responses per Respondent: 1. SUMMARY: The Department of Defense is 1700. Average Burden per Response: 21 publishing the unclassified text of a Instructions: All submissions received minutes. section 36(b)(1) arms sales notification. must include the agency name, docket Frequency: On Occasion. This is published to fulfill the number and title for this Federal Respondents are individuals or requirements of section 155 of Public Register document. The general policy representatives of Federal and non- Law 104–164 dated July 21, 1996. for comments and other submissions Federal government agencies, FOR FURTHER INFORMATION CONTACT: from members of the public is to make community groups, for-profit and non- Chandelle K. Parker, DSCA/LMO, (703) these submissions available for public profit organizations, and civic 697–9027. viewing on the Internet at http:// organizations requesting Armed Forces The following is a copy of a letter to www.regulations.gov as they are support for patriotic events conducted the Speaker of the House of received without change, including any in the civilian domain. DD Forms 2535 Representatives, Transmittal 16–39 with personal identifiers or contact and 2536 record the type of military attached Policy Justification and information. support requested, event data, and Any associated form(s) for this sponsoring organization information. Sensitivity of Technology. collection may be located within this The completed forms provide the Dated: July 20, 2016. same electronic docket and downloaded Armed Forces the minimum Aaron Siegel, for review/testing. Follow the information necessary to determine Alternate OSD Federal Register Liaison instructions at http:// whether an event is eligible for military Officer, Department of Defense.
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Transmittal No. 16–39 (iii) Description and Quantity or Continuous Wave Illumination Notice of Proposed Issuance of Letter of Quantities of Articles or Services Under Transmitters, Ten (10) MK25 Quad Pack Offer Pursuant to Section 36(b)(1) of the Consideration for Purchase: Containers, One (1) Inertial Missile Arms Export Control Act, as amended Major Defense Equipment (MDE): Initializer Power Supply (IMIPS), Thirty-three (33) Evolved Seasparrow canisters, spare and repair parts, (i) Prospective Purchaser: Government Missiles (ESSMs) support and test equipment, of Chile Six (6) Evolved Seasparrow Telemetry publications and technical (ii) Total Estimated Value: Missiles documentation, personnel training, U.S. Three (3) MK 41 Vertical Launching Government and contractor engineering, Major Defense Equip- ment * ...... $73.2 million Systems (VLS), tactical version, baseline technical and logistics support services, Other ...... $66.9 million VII technical assistance, installation and Non-MDE: integration oversight support, logistics, TOTAL ...... $140.1 million This request also includes the program management, packaging and *as defined in Section 47(6) of the Arms following Non-MDE: Five (5) ESSM transportation. Export Control Act. Shipping Containers, Five (5) MK–73 (iv) Military Department: Navy
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(v) Prior Related Cases, if any: CI–P– additional U.S. Government or elements, primarily performance AFO, P&A data contractor representatives to Chile. characteristics, engagement algorithms, (vi) Sales Commission, Fee, etc., Paid, There will be no adverse impact on and transmitter specific frequencies, the Offered, or Agreed To Be Paid: None U.S. defense readiness as a result of this information could be used to develop (vii) Sensitivity of Technology proposed sale. countermeasures that might reduce Contained in the Defense Article or Transmittal No. 16–39 weapon system effectiveness. Defense Services Proposed To Be Sold: 5. A determination has been made See Annex attached. Notice of Proposed Issuance of Letter of that the recipient country can provide (viii) Date Report Delivered to Offer Pursuant to Section 36(b)(1) of the substantially the same degree of Congress: 1 July 2016 Arms Export Control Act protection for the sensitive technology POLICY JUSTIFCATION Annex being released as the U.S. Government. This sale is necessary in furtherance of Chile—Evolved Seasparrow Missiles Item No. vii the U.S. foreign policy and national (ESSMs): (vii) Sensitivity of Technology: security objectives outlined in the The Government of Chile has 1. The sale of Evolved Seasparrow Policy Justification. requested a possible sale of: missiles (ESSM) under this proposed 6. All defense articles and services Major Defense Equipment (MDE): FMS case will result in the transfer of listed in this transmittal have been Thirty-three (33) Evolved Seasparrow classified missile equipment to Chile. authorized for release and export to Missiles (ESSMs) Both classified and unclassified defense Chile. Six (6) Evolved Seasparrow Telemetry equipment and technical data will be [FR Doc. 2016–17472 Filed 7–22–16; 8:45 am] Missiles transferred. The missile includes the BILLING CODE 5001–06–P Three (3) MK 41 Vertical Launching guidance section, warhead section, Systems (VLS), tactical version, baseline transition section, propulsion section, VII control section and Thrust Vector DEPARTMENT OF DEFENSE Non-MDE: Control (TVC), of which the guidance This request also includes the section and transition section are Office of the Secretary following Non-MDE: Ten (10) MK25 classified CONFIDENTIAL. Standard [Docket ID: DOD–2012–OS–0014] Quad Pack Canisters; Five (5) ESSM missile documentation to be provided Shipping Containers; Five (5) MK–73 under this FMS case will include: Proposed Collection; Comment Continuous Wave Illumination a. Parametric documents classified Request Transmitters, One (1) Inertial Missile CONFIDENTIAL. Initializer Power Supply (IMIPS); spare b. Missile Handling/Maintenance AGENCY: Defense Logistics Agency, DoD. and repair parts, support and test Procedures. ACTION: Notice. equipment, publications and technical c. General Performance Data classified documentation, personnel training, U.S. CONFIDENTIAL. SUMMARY: In compliance with the Government and contractor engineering, d. Firing Guidance classified Paperwork Reduction Act of 1995, the technical and logistics support services, CONFIDENTIAL. Defense Logistics Agency announces a technical assistance, installation and e. Dynamics Information classified proposed public information collection integration oversight support, logistics, CONFIDENTIAL. and seeks public comment on the program management, packaging and 2. The MK 41 Vertical Launching provisions thereof. Comments are transportation. Systems (VLS) is a fixed, vertical, multi- invited on: whether the proposed The total estimated value of MDE is missile launching system with the collection of information is necessary $73.2 million. The total overall capability to store and launch multiple for the proper performance of the estimated value is $140.1 million. missile variants depending on the functions of the agency, including This proposed sale will contribute to warfighting mission. MK 41 VLS is a whether the information shall have the foreign policy and national security modular, below-deck configuration with practical utility; the accuracy of the of the United States by increasing each module consisting of 8 missile agency’s estimate of the burden of the Chile’s ability to contribute to regional cells with an associated gas proposed information collection; ways security and promoting interoperability management and deluge system. The to enhance the quality, utility, and with the U.S. forces. The sale will highest classification of the hardware to clarity of the information to be provide upgraded air defense be exported is UNCLASSIFIED. The collected; and ways to minimize the capabilities on Chile’s type 23 frigates. highest classification of the technical burden of the information collection on The proposed sale improves Chile’s documentation to be exported is respondents, including through the use capability to deter regional threats and UNCLASSIFIED. The highest of automated collection techniques or strengthen its homeland defense. Chile classification of software to be exported other forms of information technology. is CONFIDENTIAL. will have no difficulty absorbing this DATES: 3. The proposed sale of ESSM under Consideration will be given to all equipment into its armed forces. comments received by September 23, The proposed sale of this equipment this FMS case will result in the transfer 2016. and support will not alter the basic of sensitive technological information military balance in the region. and or restricted information contained ADDRESSES: You may submit comments, The prime contractors will be in the missile guidance section. Certain identified by docket number and title, Raytheon Missile Systems, Tucson, operating frequencies and performance by any of the following methods: Arizona, BAE Systems, Aberdeen, South characteristics are classified SECRET • Federal eRulemaking Portal: http:// Dakota, and Lockheed Martin, Bethesda, because they could be used to develop www.regulations.gov. Follow the MD. There are no known offset tactics and/or countermeasures to instructions for submitting comments. agreements proposed in connection reduce or defeat missile effectiveness. • Mail: Department of Defense, Office with this potential sale. 4. If a technologically advanced of the Deputy Chief Management Implementation of this proposed sale adversary were to obtain knowledge of Officer, Directorate for Oversight and will not require the assignment of any the specific hardware and software Compliance, 4800 Mark Center Drive,
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Mailbox #24, Alexandria, VA 22350– Responses per Respondent: 1. between sponsor applicants and Fourth 1700. Annual Responses: 42,000. Class Midshipmen at the United States Instructions: All submissions received Average Burden per Response: .33 Naval Academy. An analysis of the must include the agency name, docket hours (20 minutes). information collection is made by the number and title for this Federal Frequency: On occasion. Sponsor Program Director during the Register document. The general policy Respondents are individuals/ process in order to best match sponsors for comments and other submissions businesses/contractors who receive with Midshipmen. from members of the public is to make defense property identified as U.S. Affected Public: Individuals or these submissions available for public Munitions List Items and Commerce households. viewing on the Internet at http:// Control List Items through: Purchase, Frequency: Annually. www.regulations.gov as they are exchange/trade sale, authorized transfer Respondent’s Obligation: Voluntary. received without change, including any or donation. They are checked to OMB Desk Officer: Ms. Jasmeet personal identifiers or contact determine if they are responsible, not Seehra. information. debarred bidders, Specially Designated Comments and recommendations on Any associated form(s) for this Nationals or Blocked Persons, or have the proposed information collection collection may be located within this not violated U.S. export laws. should be emailed to Ms. Jasmeet same electronic docket and downloaded The form is available on the DOD Seehra, DoD Desk Officer, at Oira_ for review/testing. Follow the DEMIL/Trade Security Controls Web [email protected]. Please instructions at http:// page, DLA Disposition Services usable identify the proposed information www.regulations.gov for submitting property sales Web page, General collection by DoD Desk Officer and the comments. Please submit comments on Services Administration (GSA) auction Docket ID number and title of the any given form identified by docket Web page, and Defense Contract information collection. number, form number, and title. Management Agency offices, FormFlow You may also submit comments and FOR FURTHER INFORMATION CONTACT: To and ProForm. recommendations, identified by Docket request more information on this Dated: July 20, 2016. ID number and title, by the following method: proposed information collection or to Aaron Siegel, • obtain a copy of the proposal and Federal eRulemaking Portal: http:// Alternate OSD Federal Register Liaison www.regulations.gov. Follow the associated collection instruments, Officer, Department of Defense. please write to the Defense Logistics instructions for submitting comments. [FR Doc. 2016–17456 Filed 7–22–16; 8:45 am] Instructions: All submissions received Agency Headquarters, ATTN: Mr. BILLING CODE 5001–06–P Robert Bednarcik, J33, 8725 John J. must include the agency name, Docket Kingman Rd., Ft. Belvoir, VA 22060– ID number and title for this Federal 6221; or call (703)767–1178. Register document. The general policy DEPARTMENT OF DEFENSE for comments and other submissions SUPPLEMENTARY INFORMATION: Department of the Navy from members of the public is to make Title; Associated Form; and OMB these submissions available for public Number: End-Use Certificate, DLA Form [Docket ID: USN–2013–0032] viewing on the Internet at http:// 1822, OMB No. 0704–0382. www.regulations.gov as they are Needs and Uses: All individuals Submission for OMB Review; received without change, including any wishing to acquire DOD/Government Comment Request personal identifiers or contact property identified as U.S. Munitions information. ACTION: Notice. List Items (MLI) or Commerce Control DOD Clearance Officer: Mr. Frederick List Item (CCLI) must complete this SUMMARY: Licari. form each time they enter into a The Department of Defense has submitted to OMB for clearance, the Written requests for copies of the transaction. It is used to clear recipients information collection proposal should to ensure their eligibility to conduct following proposal for collection of information under the provisions of the be sent to Mr. Licari at WHS/ESD business with the government. That Directives Division, 4800 Mark Center they are not debarred bidders; Specially Paperwork Reduction Act. DATES: Consideration will be given to all Drive, East Tower, Suite 02G09, Designated Nationals (SDN) or Blocked Alexandria, VA 22350–3100. Persons; have not violated U.S. export comments received by August 24, 2016. laws; will not divert the property to FOR FURTHER INFORMATION CONTACT: Fred Dated: July 20, 2016. denied/sanctioned countries, Licari, 571–372–0493. Aaron Siegel, unauthorized destinations or sell to SUPPLEMENTARY INFORMATION: Alternate OSD Federal Register Liaison debarred/Bidder Experience List firms Title, Associated Form And OMB Officer, Department of Defense. or individuals. The EUC informs the Number: United States Naval Academy [FR Doc. 2016–17487 Filed 7–22–16; 8:45 am] recipients that when this property is to Sponsor Application; OMB Control BILLING CODE 5001–06–P be exported, they must comply with the Number 0703–0054. International Traffic in Arms Regulation Type Of Request: Reinstatement, with (ITAR), 22 CFR 120 et seq.; Export change, of a previously approved DEPARTMENT OF DEFENSE Administration Regulations (EAR), 15 collection for which approval has Department of the Navy CFR 730 et seq.; Office of Foreign Asset expired. Controls (OFAC), 31 CFR 500 et seq.; Number of Respondents: 800. Extension of Public Comment Period and the United States Customs Service Responses per Respondent: 1. on the Environmental Assessment rules and regulations. Annual Responses: 800. Addressing the Consolidation and Affected Public: Individuals or Average Burden per Response: 1 hour. Renovation at Marine Corps Forces households; business or other for-profit; Annual Burden Hours: 800. Reserve Center Brooklyn, New York not-for-profit institutions. Needs And Uses: This collection of Annual Burden Hours: 14,000. information is necessary to determine AGENCY: Department of the Navy, Number of Respondents: 42,000. the eligibility and overall compatibility Department of Defense.
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ACTION: Notice. Full Text of Announcement Note: The Department is not bound by any estimates in this notice. I. Funding Opportunity Description SUMMARY: The Department of the Navy Note: Under 34 CFR 75.562(c), an (DoN) is extending the public comment Purpose of Program: Under the indirect cost reimbursement on a period for the Environmental Rehabilitation Act of 1973 training grant is limited to the Assessment (EA) assessing the potential (Rehabilitation Act), as amended by the recipient’s actual indirect costs, as environmental impacts from the Workforce Innovation and Opportunity determined by its negotiated indirect consolidation of approximately 55 full- Act, the Rehabilitation Services cost rate agreement, or eight percent of time active duty and 549 reserve staff Administration (RSA) makes grants to a modified total direct cost base, and their equipment from the Armed public and private nonprofit agencies whichever amount is less. Indirect costs Forces Reserve Center Farmingdale and and organizations, including in excess of the limit may not be Marine Forces Reserve Center Garden institutions of higher education, to charged directly, used to satisfy City to Marine Corps Reserve Center establish interpreter training programs matching or cost-sharing requirements, Brooklyn published on June 29, 2016 or to provide financial assistance for or charged to another Federal award. (81 FR 42338). The comment period ongoing interpreter training programs to Project Period: Up to 60 months. scheduled to end July 15, 2016 is train a sufficient number of qualified Continuing the Fourth and Fifth Years extended to August 15, 2016. This interpreters throughout the country. The of the Project: In deciding whether to action will allow interested persons grants are designed to train interpreters continue funding the Training of additional time to analyze the issues to effectively interpret and transliterate Interpreters for Individuals Who Are and prepare their comments. The EA using spoken, visual, and tactile modes Deaf or Hard of Hearing and Individuals can be viewed at: of communication; ensure the Who Are Deaf-Blind program for the www.marforres.marines.mil/ maintenance of the interpreting skills of fourth and fifth years, the Department GeneralSpecialStaff/Facilities.aspx. qualified interpreters; and provide will conduct a one-day intensive review opportunities for interpreters to improve meeting during the third quarter of the DATES: The EA public review period is their skills in order to meet both the third year of the project period. Specific extended to August 15, 2016. highest standards approved by details of this review and evaluation FURTHER INFORMATION: Mr. Christopher certifying associations and the criteria will be established in the Hurst, NEPA Project Manager, U.S. communication needs of individuals cooperative agreement. Marine Corps Forces Reserve, 2000 who are deaf or hard of hearing and III. Eligibility Information Opelousas Avenue, New Orleans, LA individuals who are deaf-blind. 70114, or by email at Priority: This priority is from the 1. Eligible Applicants: Baccalaureate [email protected]. notice of final priority for this program degree ASL-English interpretation published elsewhere in this issue of the programs that are recognized and Dated: July 19, 2016. accredited by the Commission on N. A. Hagerty-Ford, Federal Register (NFP). Absolute Priority: For FY 2016, this Collegiate Interpreter Education (CCIE) Commander, Office of the Judge Advocate priority is an absolute priority. Under 34 are eligible to apply as lead applicants General, U.S. Navy, Federal Register Liaison in the consortium. States and public or Officer. CFR 75.105(c)(3), we consider only applications that meet this priority. nonprofit agencies and organizations, [FR Doc. 2016–17537 Filed 7–22–16; 8:45 am] This priority is: including institutions of higher BILLING CODE 3810–FF–P Experiential Learning Model education, such as baccalaureate degree Demonstration Center for Novice ASL-English interpretation programs Interpreters and Baccalaureate Degree that are not CCIE accredited, are not ASL-English Interpretation Programs. eligible to be lead applicants but are DEPARTMENT OF EDUCATION Program Authority: 29 U.S.C. 772(f). eligible to be members of the Applicable Regulations: (a) The consortium. Applications for New Awards; Training Education Department General 2. Cost Sharing or Matching: The of Interpreters for Individuals Who Are Administrative Regulations (EDGAR) in Commissioner may award grants to Deaf or Hard of Hearing and 34 CFR parts 75, 77, 79, 81, 82, 84, 86, public or private nonprofit agencies or Individuals Who Are Deaf-Blind and 99. (b) The Office of Management organizations to pay part of the costs for Program and Budget (OMB) Guidelines to interpreter training programs (section 302(f)(1)(A) of the Rehabilitation Act of AGENCY: Office of Special Education and Agencies on Governmentwide Rehabilitative Services, Department of Debarment and Suspension 1973). Therefore, in order to be Education. (Nonprocurement) in 2 CFR part 180, as considered for funding, applicants must adopted and amended as regulations of identify in the application budget and ACTION: Notice. the Department in 2 CFR part 3485. (c) budget narrative a 10 percent match The Uniform Administrative towards the total cost of the project. In Overview Information: Training of Requirements, Cost Principles, and order to calculate match, applicants may Interpreters for Individuals Who Are Audit Requirements for Federal Awards use the match-calculator available at: Deaf or Hard of Hearing and Individuals in 2 CFR part 200, as adopted and https://rsa.ed.gov/match-calculator.cfm. Who Are Deaf-Blind Program Notice amended as regulations of the inviting applications for new awards for IV. Application and Submission Department in 2 CFR part 3474. (d) The Information fiscal year (FY) 2016. regulations for this program in 34 CFR Catalog of Federal Domestic part 396. (e) The NFP. 1. Address To Request Application Assistance (CFDA) Number: 84.160C. Package: You can obtain an application II. Award Information package via the Internet or from the DATES: Type of Award: Cooperative Education Publications Center (ED Applications Available: July 25, 2016. agreement. Pubs). To obtain a copy via the Internet, Deadline for Transmittal of Estimated Available Funds: $800,000. use the following address: www.ed.gov/ Applications: August 24, 2016. Estimated Number of Awards: 1. fund/grant/apply/grantapps/index.html.
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To obtain a copy from ED Pubs, write, include: (1) A logic model; (2) a 4. Intergovernmental Review: This fax, or call: ED Pubs, U.S. Department Memorandum of Understanding or a competition is subject to Executive of Education, P.O. Box 22207, Letter of Intent between the lead Order 12372 and the regulations in 34 Alexandria, VA 22304. Telephone, toll applicant, members of the consortium, CFR part 79. However, under 34 CFR free: 1–877–433–7827. FAX: (703) 605– other proposed training and TA 79.8(a), we waive intergovernmental 6794. If you use a telecommunications providers, and other relevant partners; review in order to make an award by the device for the deaf (TDD) or a text (3) a conceptual framework for the end of FY 2016. telephone (TTY), call, toll free: 1–877– project; and (4) person-loading charts 5. Funding Restrictions: We reference 576–7734. and timelines. There are no page limits regulations outlining funding You can contact ED Pubs at its Web or standards for materials in Appendix restrictions in the Applicable site, also: www.EDPubs.gov or at its A. The only optional materials that will Regulations section of this notice. email address: [email protected]. be accepted are letters of support. Please 6. Data Universal Numbering System If you request an application package note that our reviewers are not required Number, Taxpayer Identification from ED Pubs, be sure to identify this to read optional materials. Number, and System for Award program or competition as follows: Please note that any funded Management: To do business with the CFDA number 84.160C. applicant’s application abstract will be Department of Education, you must— Individuals with disabilities can made available to the public. a. Have a Data Universal Numbering obtain a copy of the application package 3. Submission Dates and Times: System (DUNS) number and a Taxpayer in an accessible format (e.g., braille, Applications Available: July 25, 2016. Identification Number (TIN); large print, audiotape, or compact disc) Date of Pre-Application: Interested b. Register both your DUNS number by contacting the person or team listed parties are invited to submit questions and TIN with the System for Award under Accessible Format in section VIII to the following email address: Management (SAM), the Government’s of this notice. [email protected]. In the subject line primary registrant database; c. Provide your DUNS number and 2. Content and Form of Application of the email, please insert the text TIN on your application; and Submission: Requirements concerning ‘‘CFDA 84.160C’’. Interested parties are d. Maintain an active SAM the content and form of an application, invited to participate in a pre- registration with current information together with the forms you must application teleconference with staff while your application is under review submit, are in the application package from the Department at 3:00 p.m. on by the Department and, if you are for this competition. July 28, 2016. The teleconference Page Limit: The application narrative awarded a grant, during the project number is: 800–369–1883, and the (Part III of the application) is where you, period. passcode is: 2888105. For further the applicant, address the selection You can obtain a DUNS number from information about the pre-application criteria that reviewers use to evaluate Dun and Bradstreet at the following teleconference, contact the person listed your application. Because of the limited Web site: http://fedgov.dnb.com/ under FOR FURTHER INFORMATION time available to review applications webform. A DUNS number can be CONTACT in section VII of this notice. and make a recommendation for created within one to two business days. Deadline for Transmittal of funding, we strongly encourage If you are a corporate entity, agency, Applications: August 24, 2016. applicants to limit the application institution, or organization, you can Applications for grants under this narrative to no more than 60 pages, obtain a TIN from the Internal Revenue competition must be submitted using the following standards: Service. If you are an individual, you • A ‘‘page’’ is 8.5″ × 11″, on one side electronically using the Grants.gov can obtain a TIN from the Internal only, with 1’’ margins at the top, Apply site (Grants.gov). For information Revenue Service or the Social Security bottom, and both sides. (including dates and times) about how Administration. If you need a new TIN, • Double space (no more than three to submit your application please allow two to five weeks for your lines per vertical inch) all text in the electronically, or in paper format by TIN to become active. application narrative, including titles, mail or hand delivery if you qualify for The SAM registration process can take headings, footnotes, quotations, an exception to the electronic approximately seven business days, but references, and captions, as well as all submission requirement, please refer to may take upwards of several weeks, text in charts, tables, figures, and Other Submission Requirements in depending on the completeness and graphs. section IV of this notice. accuracy of the data you enter into the • Use a font that is either 12 point or We do not consider an application SAM database. Thus, if you think you larger or no smaller than 10 pitch that does not comply with the deadline might want to apply for Federal (characters per inch). requirements. financial assistance under a program • Use one of the following fonts: Individuals with disabilities who administered by the Department, please Times New Roman, Courier, Courier need an accommodation or auxiliary aid allow sufficient time to obtain and New, or Arial. An application submitted in connection with the application register your DUNS number and TIN. in any other font (including Times process should contact the person listed We strongly recommend that you Roman or Arial Narrow) will not be under FOR FURTHER INFORMATION register early. accepted. CONTACT in section VII of this notice. If Note: Once your SAM registration is In addition to the page-limit guidance the Department provides an active, it may be 24 to 48 hours before on the application narrative section, we accommodation or auxiliary aid to an you can access the information in, and recommend that you adhere to the individual with a disability in submit an application through, following page limits, using the connection with the application Grants.gov. standards listed above: (1) The abstract process, the individual’s application If you are currently registered with should be no more than one page, (2) remains subject to all other SAM, you may not need to make any the resumes of key personnel should be requirements and limitations in this changes. However, please make certain no more than two pages per person, and notice. that the TIN associated with your DUNS (3) a bibliography should be no more Deadline for Intergovernmental number is correct. Also note that you than three pages. Appendix A must Review: October 24, 2016. will need to update your registration
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annually. This may take three or more Please note the following: Education Supplemental Information for business days. • When you enter the Grants.gov site, SF 424, Budget Information—Non- Information about SAM is available at you will find information about Construction Programs (ED 524), and all www.SAM.gov. To further assist you submitting an application electronically necessary assurances and certifications. with obtaining and registering your through the site, as well as the hours of • You must upload any narrative DUNS number and TIN in SAM or operation. sections and all other attachments to updating your existing SAM account, • Applications received by your application as files in a read-only, we have prepared a SAM.gov Tip Sheet, Grants.gov are date and time stamped. non-modifiable Portable Document which you can find at: http:// Your application must be fully Format (PDF). Do not upload an www2.ed.gov/fund/grant/apply/sam- uploaded and submitted and must be interactive or fillable PDF file. If you faqs.html. date and time stamped by the upload a file type other than a read- In addition, if you are submitting your Grants.gov system no later than 4:30:00 only, non-modifiable PDF (e.g., Word, application via Grants.gov, you must (1) p.m., Washington, DC time, on the Excel, WordPerfect, etc.) or submit a be designated by your organization as an application deadline date. Except as password-protected file, we will not Authorized Organization Representative otherwise noted in this section, we will review that material. Please note that (AOR); and (2) register yourself with not accept your application if it is this could result in your application not Grants.gov as an AOR. Details on these received—that is, date and time being considered for funding because steps are outlined at the following stamped by the Grants.gov system—after the material in question—for example, Grants.gov Web page: www.grants.gov/ 4:30:00 p.m., Washington, DC time, on the project narrative—is critical to a web/grants/register.html. the application deadline date. We do meaningful review of your proposal. For 7. Other Submission Requirements: not consider an application that does that reason, it is important to allow Applications for grants under this not comply with the deadline yourself adequate time to upload all competition must be submitted requirements. When we retrieve your material as PDF files. The Department electronically unless you qualify for an application from Grants.gov, we will will not convert material from other exception to this requirement in notify you if we are rejecting your formats to PDF. accordance with the instructions in this application because it was date and time • Your electronic application must section. stamped by the Grants.gov system after comply with any page-limit a. Electronic Submission of 4:30:00 p.m., Washington, DC time, on requirements described in this notice. Applications. the application deadline date. • After you electronically submit Applications for grants under the • The amount of time it can take to your application, you will receive from Training of Interpreters for Individuals upload an application will vary Grants.gov an automatic notification of Who Are Deaf or Hard of Hearing and depending on a variety of factors, receipt that contains a Grants.gov Individuals Who Are Deaf-Blind including the size of the application and tracking number. This notification Program must be submitted the speed of your Internet connection. indicates receipt by Grants.gov only, not electronically using the Therefore, we strongly recommend that receipt by the Department. Grants.gov Governmentwide Grants.gov Apply site you do not wait until the application will also notify you automatically by at www.Grants.gov. Through this site, deadline date to begin the submission email if your application met all the you will be able to download a copy of process through Grants.gov. Grants.gov validation requirements or if the application package, complete it • You should review and follow the there were any errors (such as offline, and then upload and submit Education Submission Procedures for submission of your application by your application. You may not email an submitting an application through someone other than a registered electronic copy of a grant application to Grants.gov that are included in the Authorized Organization Representative us. application package for this competition or inclusion of an attachment with a file We will reject your application if you to ensure that you submit your name that contains special characters). submit it in paper format unless, as application in a timely manner to the You will be given an opportunity to described elsewhere in this section, you Grants.gov system. You can also find the correct any errors and resubmit, but you qualify for one of the exceptions to the Education Submission Procedures must still meet the deadline for electronic submission requirement and pertaining to Grants.gov under News submission of applications. submit, no later than two weeks before and Events on the Department’s G5 Once your application is successfully the application deadline date, a written system home page at www.G5.gov. In validated by Grants.gov, the Department statement to the Department that you addition, for specific guidance and will retrieve your application from qualify for one of these exceptions. procedures for submitting an Grants.gov and send you an email with Further information regarding application through Grants.gov, please a unique PR/Award number for your calculation of the date that is two weeks refer to the Grants.gov Web site at: application. before the application deadline date is www.grants.gov/web/grants/applicants/ These emails do not mean that your provided later in this section under apply-for-grants.html. application is without any disqualifying Exception to Electronic Submission • You will not receive additional errors. While your application may have Requirement. point value because you submit your been successfully validated by You may access the electronic grant application in electronic format, nor Grants.gov, it must also meet the application for the Training of will we penalize you if you qualify for Department’s application requirements Interpreters for Individuals Who Are an exception to the electronic as specified in this notice and in the Deaf or Hard of Hearing and Individuals submission requirement, as described application instructions. Disqualifying Who Are Deaf-Blind Program at elsewhere in this section, and submit errors could include, for instance, www.Grants.gov. You must search for your application in paper format. failure to upload attachments in a read- the downloadable application package • You must submit all documents only, non-modifiable PDF; failure to for this competition by the CFDA electronically, including all information submit a required part of the number. Do not include the CFDA you typically provide on the following application; or failure to meet applicant number’s alpha suffix in your search forms: the Application for Federal eligibility requirements. It is your (e.g., search for 84.160, not 84.160C). Assistance (SF 424), the Department of responsibility to ensure that your
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submitted application has met all of the • No later than two weeks before the should check with your local post Department’s requirements. application deadline date (14 calendar office. • We may request that you provide us days or, if the fourteenth calendar day We will not consider applications original signatures on forms at a later before the application deadline date postmarked after the application date. falls on a Federal holiday, the next deadline date. Application Deadline Date Extension business day following the Federal c. Submission of Paper Applications in Case of Technical Issues with the holiday), you mail or fax a written by Hand Delivery. Grants.gov System: If you are statement to the Department, explaining If you qualify for an exception to the experiencing problems submitting your which of the two grounds for an electronic submission requirement, you application through Grants.gov, please exception prevents you from using the (or a courier service) may deliver your contact the Grants.gov Support Desk, Internet to submit your application. paper application to the Department by toll free, at 1–800–518–4726. You must If you mail your written statement to hand. You must deliver the original and obtain a Grants.gov Support Desk Case the Department, it must be postmarked two copies of your application by hand, Number and must keep a record of it. no later than two weeks before the on or before the application deadline If you are prevented from application deadline date. If you fax date, to the Department at the following electronically submitting your your written statement to the address: U.S. Department of Education, application on the application deadline Department, we must receive the faxed Application Control Center, Attention: date because of technical problems with statement no later than two weeks (CFDA Number 84.160C), 550 12th the Grants.gov system, we will grant you before the application deadline date. Street SW., Room 7039, Potomac Center an extension until 4:30:00 p.m., Address and mail or fax your Plaza, Washington, DC 20202–4260. Washington, DC time, the following statement to: Kristen Rhinehart- The Application Control Center business day to enable you to transmit Fernandez, U.S. Department of accepts hand deliveries daily between your application electronically or by Education, 400 Maryland Avenue SW., 8:00 a.m. and 4:30:00 p.m., Washington, hand delivery. You also may mail your Room 5062, Potomac Center Plaza, DC time, except Saturdays, Sundays, application by following the mailing Washington, DC 20202–2800. FAX: and Federal holidays. Note for Mail or Hand Delivery of instructions described elsewhere in this (202) 245–7591. Paper Applications: If you mail or hand notice. Your paper application must be deliver your application to the If you submit an application after submitted in accordance with the mail or hand-delivery instructions described Department— 4:30:00 p.m., Washington, DC time, on (1) You must indicate on the envelope in this notice. the application deadline date, please and—if not provided by the FOR b. Submission of Paper Applications contact the person listed under Department—in Item 11 of the SF 424 FURTHER INFORMATION CONTACT by Mail. in the CFDA number, including suffix If you qualify for an exception to the section VII of this notice and provide an letter, if any, of the competition under electronic submission requirement, you explanation of the technical problem which you are submitting your may mail (through the U.S. Postal you experienced with Grants.gov, along application; and with the Grants.gov Support Desk Case Service or a commercial carrier) your (2) The Application Control Center Number. We will accept your application to the Department. You will mail to you a notification of receipt application if we can confirm that a must mail the original and two copies of your grant application. If you do not technical problem occurred with the of your application, on or before the receive this notification within 15 Grants.gov system and that the problem application deadline date, to the business days from the application affected your ability to submit your Department at the following address: deadline date, you should call the U.S. application by 4:30:00 p.m., U.S. Department of Education, Department of Education Application Washington, DC time, on the Application Control Center, Attention: Control Center at (202) 245–6288. application deadline date. We will (CFDA Number 84.160C), LBJ Basement contact you after we determine whether Level 1, 400 Maryland Avenue SW., V. Application Review Information your application will be accepted. Washington, DC 20202–4260. 1. Selection Criteria: The selection Note: The extensions to which we You must show proof of mailing criteria for this competition are from 34 refer in this section apply only to the consisting of one of the following: CFR 75.210 of EDGAR and are listed in unavailability of, or technical problems (1) A legibly dated U.S. Postal Service the application package. with, the Grants.gov system. We will not postmark. 2. Review and Selection Process: We grant you an extension if you failed to (2) A legible mail receipt with the remind potential applicants that in fully register to submit your application date of mailing stamped by the U.S. reviewing applications in any to Grants.gov before the application Postal Service. discretionary grant competition, the deadline date and time or if the (3) A dated shipping label, invoice, or Secretary may consider, under 34 CFR technical problem you experienced is receipt from a commercial carrier. 75.217(d)(3), the past performance of the unrelated to the Grants.gov system. (4) Any other proof of mailing applicant in carrying out a previous Exception to Electronic Submission acceptable to the Secretary of the U.S. award, such as the applicant’s use of Requirement: You qualify for an Department of Education. funds, achievement of project exception to the electronic submission If you mail your application through objectives, and compliance with grant requirement, and may submit your the U.S. Postal Service, we do not conditions. The Secretary may also application in paper format, if you are accept either of the following as proof consider whether the applicant failed to unable to submit an application through of mailing: submit a timely performance report or the Grants.gov system because— (1) A private metered postmark. submitted a report of unacceptable • You do not have access to the (2) A mail receipt that is not dated by quality. Internet; or the U.S. Postal Service. In addition, in making a competitive • You do not have the capacity to Note: The U.S. Postal Service does not grant award, the Secretary requires upload large documents to the uniformly provide a dated postmark. various assurances including those Grants.gov system; and Before relying on this method, you applicable to Federal civil rights laws
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that prohibit discrimination in programs 2. Administrative and National Policy (4) The number and percentage of or activities receiving Federal financial Requirements: individuals who successfully pass the assistance from the Department of We identify administrative and National Interpreter Certification test, by Education (34 CFR 100.4, 104.5, 106.4, national policy requirements in the cohort. 108.8, and 110.23). application package and reference these (5) The average length of time for each 3. Risk Assessment and Special and other requirements in the individual to successfully pass the Conditions: Consistent with 2 CFR Applicable Regulations section of this National Interpreter Certification test, by 200.205, before awarding grants under notice. cohort. this competition, the Department We reference the regulations outlining 5. Continuation Awards: In making a conducts a review of the risks posed by the terms and conditions of an award in continuation award under 34 CFR applicants. Under 2 CFR 3474.10, the the Applicable Regulations section of 75.253, the Secretary considers, among Secretary may impose special this notice and include these and other other things: whether a grantee has conditions and, in appropriate specific conditions in the GAN. The made substantial progress in achieving circumstances, high-risk conditions on a GAN also incorporates your approved the goals and objectives of the project; grant if the applicant or grantee is not application as part of your binding whether the grantee has expended funds financially stable; has a history of commitments under the grant. in a manner that is consistent with its unsatisfactory performance; has a 3. Reporting: (a) If you apply for a approved application and budget; and, financial or other management system grant under this competition, you must if the Secretary has established that does not meet the standards in 2 ensure that you have in place the performance measurement CFR part 200, subpart D; has not necessary processes and systems to requirements, the performance targets in fulfilled the conditions of a prior grant; comply with the reporting requirements the grantee’s approved application. or is otherwise not responsible. in 2 CFR part 170 should you receive In making a continuation award, the 4. Integrity and Performance System: funding under the competition. This Secretary also considers whether the If you are selected under this does not apply if you have an exception grantee is operating in compliance with competition to receive an award that under 2 CFR 170.110(b). the assurances in its approved over the course of the project period (b) At the end of your project period, application, including those applicable may exceed the simplified acquisition you must submit a final performance to Federal civil rights laws that prohibit threshold (currently $150,000), under 2 report, including financial information, discrimination in programs or activities CFR 200.205(a)(2) we must make a as directed by the Secretary. If you receiving Federal financial assistance judgment about your integrity, business receive a multiyear award, you must from the Department (34 CFR 100.4, ethics, and record of performance under submit an annual performance report 104.5, 106.4, 108.8, and 110.23). Federal awards—that is, the risk posed that provides the most current VII. Agency Contact by you as an applicant—before we make performance and financial expenditure an award. In doing so, we must consider information as directed by the Secretary FOR FURTHER INFORMATION CONTACT: any information about you that is in the under 34 CFR 75.118. The Secretary Kristen Rhinehart-Fernandez, U.S. integrity and performance system may also require more frequent Department of Education, 400 Maryland (currently referred to as the Federal performance reports under 34 CFR Avenue SW., Room 5062, Potomac Awardee Performance and Integrity 75.720(c). For specific requirements on Center Plaza, Washington, DC 20202– Information System (FAPIIS)), reporting, please go to www.ed.gov/ 2800. Telephone: (202) 245–6103 or by accessible through SAM. You may fund/grant/apply/appforms/ email: [email protected]. review and comment on any appforms.html. If you use a TDD or a TTY, call the information about yourself that a (c) Under 34 CFR 75.250(b), the Federal Relay Service, toll free, at 1– Federal agency previously entered and Secretary may provide a grantee with 800–877–8339. that is currently in FAPIIS. additional funding for data collection Please note that, if the total value of analysis and reporting. In this case, the VIII. Other Information your currently active grants, cooperative Secretary establishes a data collection Accessible Format: Individuals with agreements, and procurement contracts period. disabilities can obtain this document from the Federal Government exceeds 4. Performance Measures: The and a copy of the application package in $10,000,000, the reporting requirements Government Performance and Results an accessible format (e.g., braille, large in 2 CFR part 200, Appendix XII, Act of 1993 (GPRA) directs Federal print, audiotape, or compact disc) on require you to report certain integrity departments and agencies to improve request to the program contact person information to FAPIIS semiannually. the effectiveness of their programs by listed under FOR FURTHER INFORMATION Please review the requirements in 2 CFR engaging in strategic planning, setting CONTACT in section VII of this notice. part 200, Appendix XII, if this grant outcome-related goals for programs, and Electronic Access to This Document: plus all the other Federal funds you measuring program results against those The official version of this document is receive exceed $10,000,000. goals. the document published in the Federal The performance measures for this Register. Free Internet access to the VI. Award Administration Information program are as follows: official edition of the Federal Register 1. Award Notices: If your application (1) The number of individuals and the Code of Federal Regulations is is successful, we notify your U.S. enrolled in the experiential learning available via the Federal Digital System Representative and U.S. Senators and program, by cohort. at: www.gpo.gov/fdsys. At this site, you send you a Grant Award Notification (2) The average length of time each can view this document, as well as all (GAN), or we may send you an email individual interacted with the local deaf other documents of this Department containing a link to access an electronic community, by cohort. published in the Federal Register, in version of your GAN. We may notify (3) The number and percentage of text or Portable Document Format you informally, also. individuals who successfully complete (PDF). To use PDF you must have If your application is not evaluated or the experiential learning program, by Adobe Acrobat Reader, which is not selected for funding, we notify you. cohort. available free at the site.
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You may also access documents of the Dated: July 19, 2016. DEPARTMENT OF ENERGY Department published in the Federal Sue Swenson, Register by using the article search Acting Assistant Secretary for Special Orders Granting Authority To Import feature at: www.federalregister.gov. Education and Rehabilitative Services. and Export Natural Gas, To Import and Specifically, through the advanced [FR Doc. 2016–17406 Filed 7–22–16; 8:45 am] Export Liquefied Natural Gas, To search feature at this site, you can limit Vacate Authority, and Errata During BILLING CODE 4000–01–P your search to documents published by June 2016 the Department.
FE Docket Nos.
BARCLAYS BANK PLC ...... 16–127–NG. FLINT HILLS RESOURCES, LP ...... 15–169–LNG. PAA NATURAL GAS STORAGE ULC ...... 16–53–NG. FLINT HILLS RESOURCES, LP ...... 15–168–LNG. HOUSTON PIPE LINE COMPANY LP ...... 16–62–NG. BG ENERGY MERCHANTS, LLC ...... 16–74–NG. SOUTHWEST ENERGY, L.P ...... 16–64–NG. IMPERIAL IRRIGATION DISTRICT ...... 16–69–NG. BP CANADA ENERGY MARKETING CORP ...... 16–68–NG. PENGROWTH ENERGY MARKETING CORPORATION ...... 16–73–NG. NEXEN ENERGY MARKETING U.S.A. INC ...... 16–70–NG. MERCURIA ENERGY AMERICA, INC ...... 16–71–NG. CONCORD ENERGY LLC ...... 16–77–NG. BP ENERGY COMPANY ...... 16–72–LNG. UNION GAS LIMITED ...... 16–79–NG. CONCORD ENERGY LLC ...... 16–80–NG. ENERGY SOURCE NATURAL GAS INC ...... 16–75–NG. ST. LAWRENCE GAS COMPANY, INC ...... 16–76–NG. J. ARON & COMPANY ...... 16–82–NG. INFINITE ENERGY, INC ...... 16–81–NG. MORGAN STANLEY CAPITAL GROUP INC ...... 16–84–NG.
AGENCY: Office of Fossil Energy, at http://energy.gov/fe/listing-doefe- 4:30 p.m., Monday through Friday, Department of Energy. authorizationsorders-issued-2016. except Federal holidays. ACTION: Notice of orders. They are also available for inspection Issued in Washington, DC, on July 19, SUMMARY: The Office of Fossil Energy and copying in the U.S. Department of 2016. (FE) of the Department of Energy gives Energy (FE–34), Division of Natural Gas John A. Anderson, notice that during June 2016, it issued Regulation, Office of Regulation and Director, Office of Regulation and orders granting authority to import and International Engagement, Office of International Engagement, Office of Oil and export natural gas, to import and export Fossil Energy, Docket Room 3E–033, Natural Gas. liquefied natural gas (LNG), to vacate Forrestal Building, 1000 Independence APPENDIX authority, and errata. These orders are Avenue SW., Washington, DC 20585, summarized in the attached appendix (202) 586–9478. The Docket Room is DOE/FE ORDERS GRANTING IMPORT/ and may be found on the FE Web site open between the hours of 8:00 a.m. and EXPORT AUTHORIZATIONS
Order No. Date Docket No. Company Description
3706–A ...... 06/09/16 15–127–NG ...... Barclays Bank Plc ...... Order 3706–A vacating Order 3706 granting blanket authority to import natural gas from Canada. 3822 ...... 06/13/16 15–169–LNG ...... Flint Hills Resources, LP ...... Order 3822 granting blanket authority to export LNG to Free Trade Agreement Countries by truck, rail, barge, and non-barge waterborne vessels. 3828–A ...... 06/16/16 16–53–NG ...... PAA Natural Gas Storage ULC... Order 3828–A vacating Order 3828 granting blanket authority to import/export natural gas from/to Canada. 3829-Errata ...... 06/06/16 15–168–LNG ...... Flint Hills Resources, LP ...... Errata adding API as intervenor. 3834–A ...... 06/27/16 16–62–NG ...... Houston Pipe Line Company LP Order 3834–A vacating Order 3834 granting blanket authority to import/export natural gas from/to Mexico. 3841 ...... 06/09/16 16–74–NG ...... BG Energy Merchants, LLC ...... Order 3841 granting blanket authority to import/export natural gas from/to Canada/Mexico. 3842 ...... 06/09/16 16–64–NG ...... Southwest Energy, L.P ...... Order 3842 granting blanket authority to import/export natural gas from/to Canada/Mexico. 3843 ...... 06/09/16 16–69–NG ...... Imperial Irrigation District ...... Order 3843 granting blanket authority to import/export natural gas from/to Mexico. 3844 ...... 06/09/16 16–68–NG ...... BP Canada Energy Marketing Order 3844 granting blanket authority to import/export Corp. natural gas from/to Canada. 3845 ...... 06/09/16 16–73–NG ...... Pengrowth Energy Marketing Order 3845 granting blanket authority to import natural Corporation. gas from Canada. 3847 ...... 06/10/16 16–70–NG ...... Nexen Energy Marketing U.S.A. Order 3847 granting blanket authority to import/export Inc. natural gas from/to Canada/Mexico.
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Order No. Date Docket No. Company Description
3848 ...... 06/10/16 16–71–NG ...... Mercuria Energy Marketing, Inc .. Order 3848 granting blanket authority to import/export natural gas from/to Canada/Mexico. 3849 ...... 06/13/16 16–77–NG ...... Concord Energy LLC ...... Order 3849 granting blanket authority to import/export natural gas from/to Canada/Mexico. 3850 ...... 06/13/16 16–72–LNG ...... BP Energy Company ...... Order 3850 granting blanket authority to import LNG from various sources by vessel. 3851 ...... 06/16/16 16–79–NG ...... Union Gas Limited ...... Order 3851 granting blanket authority to import/export natural gas from/to Canada. 3852 ...... 06/16/16 16–80–NG ...... Concord Energy LLC ...... Order 3852 granting blanket authority to import/export natural gas from/to Canada. 3853 ...... 06/17/16 16–75–NG ...... Energy Source National Gas Inc Order 3853 granting blanket authority to import/export natural gas from/to Canada. 3854 ...... 06/16/16 16–76–NG ...... St. Lawrence Gas Company, Inc Order 3854 granting blanket authority to import natural gas from Canada. 3855 ...... 06/17/16 16–82–NG ...... J. Aron & Company ...... Order 3855 granting blanket authority to import/export natural gas from/to Canada/Mexico. 3856 ...... 06/17/16 16–81–NG ...... Infinite Energy, Inc ...... Order 3856 granting blanket authority to import/export natural gas from/to Canada. 3857 ...... 06/21/16 16–84–NG ...... Morgan Stanley Capital Group Order 3857 granting blanket authority to import/export Inc. natural gas from/to Canada/Mexico.
[FR Doc. 2016–17473 Filed 7–22–16; 8:45 am] The FCC may not conduct or sponsor a under review appears, look for the OMB BILLING CODE 6450–01–P collection of information unless it control number of this ICR and then displays a currently valid Office of click on the ICR Reference Number. A Management and Budget (OMB) control copy of the FCC submission to OMB FEDERAL COMMUNICATIONS number. No person shall be subject to will be displayed. COMMISSION any penalty for failing to comply with SUPPLEMENTARY INFORMATION: a collection of information subject to the OMB Control Number: 3060–0466. [OMB 3060–0466, 3060–0799 and 3060– PRA that does not display a valid OMB Title: Sections 73.1201, 74.783 and 1078] control number. 74.1283, Station Identification. DATES: Written comments should be Form Number: Not applicable. Information Collections Being Type of Review: Extension of a Submitted for Review and Approval to submitted on or before August 24, 2016. If you anticipate that you will be currently approved collection. the Office of Management and Budget Respondents: Business or other for- submitting comments, but find it profit entities; Not for-profit AGENCY: Federal Communications difficult to do so within the period of institutions; State, local or Tribal Commission. time allowed by this notice, you should Government. ACTION: Notice and request for advise the contacts below as soon as Number of Respondents and comments. possible. Responses: 24,083 respondents; 24,083 SUMMARY: As part of its continuing effort ADDRESSES: Direct all PRA comments to responses. Nicholas A. Fraser, OMB, via email Estimated Time per Response: 0.166– to reduce paperwork burdens, and as _ _ required by the Paperwork Reduction Nicholas A. [email protected]; and 1 hour. Frequency of Response: On occasion Act (PRA) of 1995 (44 U.S.C. 3501– to Cathy Williams, FCC, via email PRA@ reporting requirement; Recordkeeping 3520), the Federal Communications fcc.gov and to [email protected]. requirement; Third party disclosure Commission (FCC or Commission) Include in the comments the OMB control number as shown in the requirement. invites the general public and other Obligation to Respond: Required to Federal agencies to take this SUPPLEMENTARY INFORMATION section below. obtain or maintain benefits. The opportunity to comment on the statutory authority for this collection of following information collections. FOR FURTHER INFORMATION CONTACT: For information is contained in 47 U.S.C. Comments are requested concerning: additional information or copies of the 151, 152, 154(i), 303, 307 and 308. Whether the proposed collection of information collection, contact Cathy Total Annual Burden: 23,249 hours. information is necessary for the proper Williams at (202) 418–2918. To view a Total Annual Cost: None. performance of the functions of the copy of this information collection Nature and Extent of Confidentiality: Commission, including whether the request (ICR) submitted to OMB: (1) Go There is no need for confidentiality with information shall have practical utility; to the Web page
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47 CFR 74.783(b) requires licensees of to the FCC. The licensee must keep this electronically by, all licensees that hold television translators whose station information in the primary station’s licenses in auctionable services. identification is made by the television files. The FCC Form 602 is comprised of station whose signals are being OMB Control No.: 3060–0799. the Main Form containing information rebroadcast by the translator, must Title: FCC Ownership Disclosure regarding the filer and the Schedule A secure agreement with this television Information for the Wireless is used to collect ownership data station licensee to keep in its file, and Telecommunications Services. pertaining to the Disclosable Interest available to FCC personnel, the Form No.: FCC Form 602. Holder(s). Each Disclosable Interest translator’s call letters and location, Type of Review: Extension of a Holder will have a separate Schedule A. giving the name, address and telephone currently approved collection. Thus, a filer will submit its FCC Form number of the licensee or his service Respondents: Business or other for- 602 with multiple copies of Schedule A, representative to be contacted in the profit; Not-for-profit institutions; and as necessary, to list each Disclosable event of malfunction of the translator. It State, Local or Tribal government. Interest Holder and associated shall be the responsibility of the Number of Respondents and information. translator licensee to furnish current Responses: 4,115 respondents and 4,115 OMB Control Number: 3060–1078. information to the television station responses. Title: Rules and Regulations licensee for this purpose. Estimated Time per Response: .5 Implementing the Controlling the 47 CFR 73.1201(b)(1) requires that the hours–1.5 hours. Assault of Non-Solicited Pornography official station identification consist of Frequency of Response: On occasion and Marketing Act of 2003, CG Docket the station’s call letters immediately reporting requirement. No. 04–53. followed by the community or Obligation To Respond: Required to Form Number: N/A. Type of Review: Extension of a communities specified in its license as obtain or retain benefits. The statutory currently approved collection. the station’s location. The name of the authority for this collection of this Respondents: Business or other for- licensee, the station’s frequency, the information is contained in sections station’s channel number, as stated on profit entities; Not-for-profit 154(i), 303(g), 303(r), and 332(c)(7) of the station’s license, and/or the station’s institutions; Individuals or households. the Communications Act of 1934, as network affiliation may be inserted Number of Respondents and amended. The statutory authority for between the call letters and station Responses: 5,443,062 respondents; this collection of this information is location. Digital Television (DTV) 5,443,062 responses. contained in sections 154(i), 303(g), stations, or DAB Stations, choosing to Estimated Time per Response: 1–10 303(r), and 332(c)(7) of the include the station’s channel number in hours (average per response). Communications Act of 1934, as the station identification must use the Frequency of Response: amended. station’s major channel number and Recordkeeping requirement; On may distinguish multicast program Total Annual Burden: 5,217 hours. occasion reporting requirements; Third streams. For example, a DTV station Total Annual Cost: $762,300. party disclosure requirement. with major channel number 26 may use Privacy Act Impact Assessment: No Obligation to Respond: Required to 26.1 to identify a High Definition impact(s). obtain or retain benefits. The statutory Television (HDTV) program service and Nature and Extent of Confidentiality: authority for this information collection 26.2 to identify a Standard Definition In general there is no need for is the CAN–SPAM Act of 2003, 15 Television (SDTV) program service. A confidentiality. On a case by case basis, U.S.C. 7701–7713, Public Law 108–187, radio station operating in DAB hybrid the Commission may be required to 117 Stat. 2719. mode or extended hybrid mode shall withhold from disclosure certain Total Annual Burden: 30,254,373 identify its digital signal, including any information about the location, hours. free multicast audio programming character, or ownership of a historic Total Annual Cost: $12,935,843. streams, in a manner that appropriately property, including traditional religious Nature and Extent of Confidentiality: alerts its audience to the fact that it is sites. Confidentiality is an issue to the extent listening to a digital audio broadcast. No Needs and Uses: The FCC Form 602 that individuals and households other insertion between the station’s call is necessary to obtain the identity of the provide personally identifiable letters and the community or filer and to elicit information required information, which is covered under the communities specified in its license is by section 1.2112 of the Commission’s FCC’s updated system of records notice permissible. A station may include in its rules regarding: (1) Persons or entities (SORN), FCC/CGB–1, ‘‘Informal official station identification the name holding a 10 percent or greater direct or Complaints, Inquiries and Requests for of any additional community or indirect ownership interest or any Dispute Assistance’’, which became communities, but the community to general partners in a general partnership effective on September 24, 2014. which the station is licensed must be holding a direct or indirect ownership Privacy Impact Assessment: The named first. interest in the applicant (‘‘Disclosable Privacy Impact Assessment (PIA) for 47 CFR 74.783(e) permits low power Interest Holders’’); and (2) All FCC- Informal Complaints and Inquiries was TV permittees or licensees to request to regulated entities in which the filer or completed on June 28, 2007. It may be be assigned four-letter call signs in lieu any of its Disclosable Interest Holders reviewed at http://www.fcc.gov/omd/ of the five-character alpha-numeric call owns a 10 percent or greater interest. privacyact/ signs. The data collected on the FCC Form 602 Privacy5FImpact5FAssessment.html. 47 CFR 74.1283(c)(1) requires a FM includes the FCC Registration Number The Commission is in the process of translator station licensee whose (FRN), which serves as a ‘‘common updating the PIA to incorporate various identification is made by the primary link’’ for all filings an entity has with revisions to it as a result of revisions to station must arrange for the primary the FCC. The Debt Collection the SORN. station licensee to furnish the Improvement Act of 1996 requires that Needs and Uses: The reporting translator’s call letters and location entities filing with the Commission use requirements included under this OMB (name, address, and telephone number an FRN. The FCC Form 602 was Control Number 3060–1078 enable the of the licensee or service representative) designed for, and must be filed Commission to collect information
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regarding violations of the Controlling information technology; and ways to Estimated Time per Response: 4 the Assault of Non-Solicited further reduce the information minutes—10 hours. Pornography and Marketing Act of 2003 collection burden on small business Frequency of Response: On occasion (CAN–SPAM Act). This information is concerns with fewer than 25 employees. and one time reporting requirements, used to help wireless subscribers stop The FCC may not conduct or sponsor a recordkeeping requirement and third receiving unwanted commercial mobile collection of information unless it party disclosure requirement. services messages. On August 12, 2004, displays a currently valid Office of Obligation to Respond: Required to the Commission released an Order, Management and Budget (OMB) control obtain or retain benefits. Statutory Rules and Regulations Implementing the number. No person shall be subject to authority for this information collection Controlling the Assault of Non-Solicited any penalty for failing to comply with is contained in 47 U.S.C. 151, 152, Pornography and Marketing Act of 2003, a collection of information subject to the 154(i), 201–205, 215, 251(b)(2), 251(e)(2) CG Docket No. 04–53, FCC 04–194, PRA that does not display a valid OMB and 332 of the Communications Act of published at 69 FR 55765, September control number. 1934, as amended. 16, 2004, adopting rules to prohibit the DATES: Written comments should be Total Annual Burden: 673,460 hours. sending of commercial messages to any submitted on or before August 24, 2016. Total Annual Cost: No cost. address referencing an Internet domain If you anticipate that you will be Privacy Impact Assessment: No name associated with wireless submitting comments, but find it impact. subscribers’ messaging services, unless difficult to do so within the period of Nature and Extent of Confidentiality: the individual addressee has given the time allowed by this notice, you should The Commission is not requesting sender express prior authorization. The advise the contacts below as soon as respondents to submit confidential information collection requirements possible. information to the Commission. If the consist § 64.3100(a)(4), (d), (e) and (f) of ADDRESSES: Direct all PRA comments to respondents wish confidential treatment the Commission’s rules. Nicholas A. Fraser, OMB, via email of their information, they may request Federal Communications Commission. [email protected]; and confidential treatment under 47 CFR Gloria J. Miles, to Nicole Ongele, FCC, via email PRA@ 0.459 of the Commission’s rules. Needs and Uses: Section 251(b)(2) of Federal Register Liaison Officer, Office of the fcc.gov and to [email protected]. Secretary. Include in the comments the OMB the Communications Act of 1934, as amended, requires LECs to ‘‘provide, to [FR Doc. 2016–17426 Filed 7–22–16; 8:45 am] control number as shown in the SUPPLEMENTARY INFORMATION the extent technically feasible, number BILLING CODE 6712–01–P section below. portability in accordance with requirements prescribed by the FOR FURTHER INFORMATION CONTACT: For Commission.’’ Through the LNP FEDERAL COMMUNICATIONS additional information or copies of the COMMISSION process, consumers have the ability to information collection, contact Nicole retain their phone number when [OMB 3060–0742, 3060–0207] Ongele at (202) 418–2991. To view a switching telecommunications service copy of this information collection providers, enabling them to choose a Information Collections Being request (ICR) submitted to OMB: (1) Go provider that best suits their needs and Submitted for Review and Approval to to the Web page http://www.reginfo.gov/ enhancing competition. In the Porting the Office of Management and Budget public/do/PRAMain, (2) look for the Interval Order and Further Notice, the section of the Web page called Commission mandated a one business AGENCY: Federal Communications ‘‘Currently Under Review,’’ (3) click on Commission. day porting interval for simple wireline- the downward-pointing arrow in the to-wireline and intermodal port ACTION: Notice and request for ‘‘Select Agency’’ box below the requests. The information collected in comments. ‘‘Currently Under Review’’ heading, (4) the standard local service request data select ‘‘Federal Communications fields is necessary to complete simple SUMMARY: As part of its continuing effort Commission’’ from the list of agencies to reduce paperwork burdens, and as wireline-to-wireline and intermodal presented in the ‘‘Select Agency’’ box, ports within the one business day required by the Paperwork Reduction (5) click the ‘‘Submit’’ button to the Act (PRA) of 1995 (44 U.S.C. 3501– porting interval mandated by the right of the ‘‘Select Agency’’ box, (6) Commission and will be used to comply 3520), the Federal Communications when the list of FCC ICRs currently Commission (FCC or Commission) with Section 251 of the under review appears, look for the OMB Telecommunications Act of 1996. invites the general public and other control number of this ICR and then Federal agencies to take this click on the ICR Reference Number. A OMB Control Number: 3060–0207. opportunity to comment on the copy of the FCC submission to OMB Title: Part 11—Emergency Alert following information collections. will be displayed. System (EAS), Order, FCC 16–32. Comments are requested concerning: Form Number: N/A. SUPPLEMENTARY INFORMATION: whether the proposed collection of OMB Control Number: 3060–0742. Type of Review: Revision of a information is necessary for the proper Title: Sections 52.21 through 52.36, currently approved collection. performance of the functions of the Telephone Number Portability, 47 CFR Respondents: Business or other for- Commission, including whether the part 52, subpart (C) and CC Docket No. profit entities, not-for-profit institutions, information shall have practical utility; 95–116. and state, local or tribal government. the accuracy of the Commission’s Form Number: N/A. Number of Respondents and burden estimate; ways to enhance the Type of Review: Extension of a Responses: 63,080 respondents; quality, utility, and clarity of the currently approved collection. 3,596,546 responses. information collected; ways to minimize Respondents: Business or other for- Estimated Time per Response: 1 hour the burden of the collection of profit entities. (EAS Participants); 20 hours (SECCs). information on the respondents, Number of Respondents and Frequency of Response: One-time including the use of automated Responses: 3,631 respondents; reporting requirement and collection techniques or other forms of 10,002,005 responses. recordkeeping requirement.
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Obligation to Respond: Obligatory for • who they were monitoring at the amendments to the State EAS Plans on all entities required to participate in time of the test, and the make and file with the Bureau. • EAS. Statutory authority for this model number of the EAS This information will be used by FCC collection of information is contained in equipment that they utilized. staff to gauge the effectiveness of the The Third Report and Order indicates 47 U.S.C. 154(i) and 606 of the EAS’s capacity to disseminate in- that the national tests of EAS, and Communications Act of 1934, as language EAS emergency alert content related information collections will amended. to persons who communicate in a likely be carried out on an annual basis. Total Annual Burden: 110,476 hours. language other than English or may have On March 10, 2010, OMB approved the Total Annual Cost: No cost. a limited understanding of the English Privacy Impact Assessment: No collection as indicated by the related language; to determine whether private Impact(s). Notice of Office of Management and and local efforts to disseminate EAS Nature and Extent of Confidentiality: Budget Action notification. multilingual content might be There is no need for confidentiality. The FCC is submitting this Needs and Uses: Part 11 contains information collection to the Office of incorporated into the overall national rules and regulations addressing the Management and Budget (OMB) as a EAS structure; and to confirm that nation’s Emergency Alert System (EAS). revision of the previously approved private and local EAS multilingual The EAS provides the President with information collection that established operations are consistent with national the capability to provide immediate the mandatory Electronic Test Reporting plans, FCC regulations, and EAS communications and information to the System (ETRS) that EAS Participants operation. general public at the national, state and must utilize to file identifying and test The Commission expects that the local area level during periods of result data as part of their participation costs to EAS Participants to comply national emergency. The EAS also in nationwide EAS testing. Specifically, with these reporting requirements will provides state and local governments the Order adopted in EB Docket No. 04– be minimal, and largely limited to and the National Weather Service with 296, FCC 16–32, amends the State EAS internal administrative charges the capability to provide immediate Plan filing requirements set forth at associated with drafting a brief communications and information to the Section 11.21 of the Commission’s rules statement, and submitting that general public concerning emergency to require EAS Participants (i.e., the statement, and any other relevant situations posing a threat to life and broadcasters, cable systems, and other information that the EAS Participant property. State and local use of the EAS service providers subject to the FCC’s may wish to provide to their SECC for is required to be described in State EAS EAS rules) to provide the following inclusion into the State EAS Plan for the Plans that are administered by State information to their respective SECC, state in which the EAS Participant Emergency Communications who in turn will include such operates. The Commission further Committees (SECC) and submitted to information in the State EAS Plan expects that the vast majority of EAS the FCC for approval. submitted to the Commission for Participants are not engaged in In the Third Report and Order in EB approval: multilingual EAS activities and Docket No. 04–296, FCC 11–12, the • A description of any actions taken therefore will need to submit nothing Commission adopted rules establishing by the EAS Participant (acting more than a very brief statement to their a regulatory structure for a national test individually, in conjunction with other SECC explaining their decision to plan of the EAS. In order for the Commission EAS Participants in the geographic area, or not plan future actions to provide to determine the extent to which the and/or in consultation with state and EAS alert content in languages other test, and by extension the EAS, was local emergency authorities), to make than English to their non-English successful, the FCC adopted rules EAS alert content available in languages speaking audience(s). For the requiring EAS Participants, within forty other than English to its non-English presumably small percentage of EAS five (45) days of the date of the first speaking audience(s); Participants that actually are engaged in • national EAS test, to record and submit A description of any future actions multilingual EAS activities, the filing to the Commission the following test- planned by the EAS Participant, in will merely require that they supply a related diagnostic information for each consultation with state and local summary of actions they already have alert received from each message source emergency authorities, to provide EAS taken in this regard. Accordingly, the monitored at the time of the national alert content in languages other than FCC estimates that complying with the test: English to its non-English speaking reporting requirement will take EAS • Whether they received the alert audience(s), along with an explanation Participants, on average, approximately message during the designated test; for the EAS Participant’s decision to one hour. The FCC estimates that • whether they retransmitted the plan or not plan such actions; and compiling the EAS Participant • alert; Any other relevant information that summaries of multilingual EAS • if they were not able to receive and/ the EAS Participant may wish to activities and incorporating such or transmit the alert, their ‘best effort’ provide. information into the State EAS Plan will diagnostic analysis regarding the In addition, in the event that there is take SECCs, on average, approximately cause(s) for such failure; a material change to any of the 20 hours. • a description of their station information that EAS Participants are The following information collection identification and level of designation required to furnish their respective contained in Part 11 may be impacted (PEP, LP–1, etc.); SECCs, EAS Participants must, within • the date/time of receipt of the EAN 60 days of the occurrence of such by these rule amendments: message by all stations; the date/time of material change, submit aa letter to their Section 11.21 requires that state and PEP station acknowledgement of receipt respective SECCs, copying the local EAS plans be reviewed and of the EAN message to FOC; Commission’s Public Safety and approved by the Chief, Public Safety • the date/time of initiation of actual Homeland Security Bureau (Bureau) and Homeland Security, prior to broadcast of the Presidential message; that describe such change. The SECCs implementation to ensure that they are • the date/time of receipt of the EAT are required to incorporate the consistent with national plans, FCC message by all stations; information in such letters as regulations, and EAS operation.
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Federal Communications Commission. to Nicole Ongele, FCC, via email PRA@ Order, FCC 16–33, which reformed Marlene H. Dortch, fcc.gov and to [email protected]. universal service for rate-of-return local Secretary, Office of the Secretary. Include in the comments the OMB exchange carriers (LECs). These reforms [FR Doc. 2016–17503 Filed 7–22–16; 8:45 am] control number as shown in the require approximately 95 rate-of-return BILLING CODE 6712–01–P SUPPLEMENTARY INFORMATION section LECs to make one-time tariff filings and below. NECA to make two tariff filings with the FOR FURTHER INFORMATION CONTACT: For necessary support materials outside the FEDERAL COMMUNICATIONS additional information or copies of the normal annual filing period. We note COMMISSION information collection, contact Nicole that we are removing the requirement that competitive and incumbent LECs [OMB 3060–0298, 3060–0400, 3060–0819] Ongele at (202) 418–2991. To view a copy of this information collection make a one-time intrastate tariff filing to Information Collections Being request (ICR) submitted to OMB: (1) Go establish Voice over Internet Protocol Submitted for Review and Approval to to the Web page
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at this time, we are removing the omd/privacyact/Privacy_Impact_ Lifeline Broadband Providers (LBPs), requirement that competitive and Assessment.html. updating the obligations to advertise incumbent LECs make a one-time Nature and Extent of Confidentiality: Lifeline offerings, modifying the non- intrastate tariff filing to establish Voice Some of the requirements contained in usage de-enrollment requirements over Internet Protocol rates at intrastate this information collection do affect within the program, moving to rolling levels, as this requirement has been met. individuals or households, and thus, annual subscriber recertification, and Sections 201, 202, and 203 of the there are impacts under the Privacy Act. streamlining the first-year ETC audit Communications Act of 1934, as The FCC’s system of records notice requirements. Also, the Commission amended (the Act) require common (SORN), FCC/WCB–1, ‘‘Lifeline seeks to update the number of carriers to establish just and reasonable Program.’’ The Commission will use the respondents for all the existing charges, practices, and regulations for information contained in FCC/WCB–1 information collection requirements, their interstate telecommunications to cover the personally identifiable thus increasing the total burden hours services provided. For services that are information (PII) that is required as part for some requirements and decreasing still covered under Section 203, tariff of the Lifeline Program (‘‘Lifeline’’). As the total burden hours for other schedules containing charges, rates, required by the Privacy Act of 1974, as requirements. Finally, the Commission rules, and regulations must be filed with amended, 5 U.S.C. 552a, the seeks to revise the FCC Forms 555, 497, the Commission. Part 61 of the Commission also published a SORN, and 481 to incorporate the new Commission’s Rules, 47 CFR part 61, FCC/WCB–1 ‘‘Lifeline Program’’ in the Commission rules and modify the prescribes the framework for the Federal Register on December 6, 2013 filings for FCC Forms 555 and 497 to establishment of and subsequent (78 FR 73535). include detailed field descriptions. Also, respondents may request revisions to tariffs. Certain local Federal Communications Commission. exchange carriers are required to submit materials or information submitted to Marlene H. Dortch, a biennial or annual Tariff Review Plan the Commission or to the Universal (TRP) in partial fulfillment of cost Service Administrative Company Secretary, Office of the Secretary. support material required by Part 61. (USAC or Administrator) be withheld [FR Doc. 2016–17502 Filed 7–22–16; 8:45 am] The Commission developed the TRP to from public inspection under 47 CFR BILLING CODE 6712–01–P minimize reporting burdens on 0.459 of the FCC’s rules. We note that reporting incumbent local exchange USAC must preserve the confidentiality carriers (ILECs). TRPs set forth the of all data obtained from respondents; FEDERAL DEPOSIT INSURANCE summary material ILECs file to support must not use the data except for CORPORATION revisions to the rates in their interstate purposes of administering the universal access service tariffs. For those services service programs; and must not disclose Notice to All Interested Parties of the still requiring cost support, TRPs assist data in company-specific form unless Termination of the Receivership of the Commission in determining whether directed to do so by the Commission. 10499, Columbia Savings Bank, Needs and Uses: The Commission ILEC access charges are just and Cincinnati, Ohio will submit this information collection reasonable as required under the Act. Notice is hereby given that the Federal OMB Control Number: 3060–0819. after this comment period to obtain the full, three-year clearance from the Office Deposit Insurance Corporation (‘‘FDIC’’) Title: Lifeline and Link Up Reform as Receiver for Columbia Savings Bank, and Modernization, of Management and Budget (OMB). The Commission also proposes several Cincinnati, Ohio (‘‘the Receiver’’) Telecommunications Carriers Eligible intends to terminate its receivership for for Universal Service Support, Connect revisions to this information collection. On April 27, 2016, the Commission said institution. The FDIC was America Fund. appointed receiver of Columbia Savings Form Numbers: FCC Form 497, 555, & released an order reforming its low- income universal service support Bank on May 23, 2014. The liquidation 481. of the receivership assets has been Type of Review: Revision of a mechanisms. Lifeline and Link Up completed. To the extent permitted by currently approved collection. Reform and Modernization; Respondents: Individuals or Telecommunications Carriers Eligible available funds and in accordance with households and business or other for- for Universal Service Support; Connect law, the Receiver will be making a final profit. America Fund, WC Docket Nos. 11–42, dividend payment to proven creditors. Number of Respondents: 21,162,260 09–197, 10–90, Third Further Notice of Based upon the foregoing, the respondents; 23,956,240 responses. Proposed Rulemaking, Order on Receiver has determined that the Estimated Time per Response: .0167 Reconsideration, and Further Report continued existence of the receivership hours–250 hours. and Order, (Lifeline Third Reform will serve no useful purpose. Frequency of Response: Annual and Order). This revised information Consequently, notice is given that the on occasion reporting requirements and collection addresses requirements to receivership shall be terminated, to be third party disclosure requirement. carry out the programs to which the effective no sooner than thirty days after Obligation to Respond: Required to Commission committed itself in the the date of this Notice. If any person obtain or retain benefits. Lifeline Third Reform Order. Under this wishes to comment concerning the Total Annual Burden: 13,484,412 information collection, the Commission termination of the receivership, such hours. seeks to revise the information comment must be made in writing and Total Annual Cost: $937,500. collection to comply with the sent within thirty days of the date of Privacy Act Impact Assessment: Yes. Commission’s new rules, adopted in the this Notice to: Federal Deposit The Commission completed a Privacy Lifeline Third Reform Order, regarding Insurance Corporation, Division of Impact Assessment (PIA) for some of the phasing out support for mobile voice Resolutions and Receiverships, information collection requirements over the next six years, requiring Attention: Receivership Oversight contain in this collect. The PIA was Eligible Telecommunications Carriers Department 34.6, 1601 Bryan Street, published in the Federal Register at 78 (ETCs) to certify compliance with the Dallas, TX 75201. FR 73535 on December 6, 2013. The PIA new minimum service requirements, No comments concerning the may be reviewed at: http://www.fcc.gov/ creating a new ETC designation for termination of this receivership will be
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considered which are not sent within (BHC Act), Regulation Y (12 CFR part FEDERAL RESERVE SYSTEM this time frame. 225), and all other applicable statutes Notice of Proposals To Engage in or Dated: July 19, 2016. and regulations to become a bank holding company and/or to acquire the To Acquire Companies Engaged in Federal Deposit Insurance Corporation. Permissible Nonbanking Activities Robert E. Feldman, assets or the ownership of, control of, or Executive Secretary. the power to vote shares of a bank or The companies listed in this notice bank holding company and all of the [FR Doc. 2016–17453 Filed 7–22–16; 8:45 am] have given notice under section 4 of the banks and nonbanking companies BILLING CODE 6714–01–P Bank Holding Company Act (12 U.S.C. owned by the bank holding company, 1843) (BHC Act) and Regulation Y, (12 including the companies listed below. CFR part 225) to engage de novo, or to FEDERAL RESERVE SYSTEM The applications listed below, as well acquire or control voting securities or as other related filings required by the assets of a company, including the Change in Bank Control Notices; Board, are available for immediate companies listed below, that engages Acquisitions of Shares of a Bank or inspection at the Federal Reserve Bank either directly or through a subsidiary or Bank Holding Company indicated. The applications will also be other company, in a nonbanking activity available for inspection at the offices of that is listed in § 225.28 of Regulation Y The notificants listed below have (12 CFR 225.28) or that the Board has the Board of Governors. Interested applied under the Change in Bank determined by Order to be closely persons may express their views in Control Act (12 U.S.C. 1817(j)) and related to banking and permissible for writing on the standards enumerated in § 225.41 of the Board’s Regulation Y (12 bank holding companies. Unless CFR 225.41) to acquire shares of a bank the BHC Act (12 U.S.C. 1842(c)). If the otherwise noted, these activities will be or bank holding company. The factors proposal also involves the acquisition of conducted throughout the United States. that are considered in acting on the a nonbanking company, the review also Each notice is available for inspection notices are set forth in paragraph 7 of includes whether the acquisition of the at the Federal Reserve Bank indicated. the Act (12 U.S.C. 1817(j)(7)). nonbanking company complies with the The notice also will be available for The notices are available for standards in section 4 of the BHC Act inspection at the offices of the Board of immediate inspection at the Federal (12 U.S.C. 1843). Unless otherwise Governors. Interested persons may Reserve Bank indicated. The notices noted, nonbanking activities will be express their views in writing on the also will be available for inspection at conducted throughout the United States. question whether the proposal complies the offices of the Board of Governors. Unless otherwise noted, comments with the standards of section 4 of the Interested persons may express their regarding each of these applications BHC Act. views in writing to the Reserve Bank must be received at the Reserve Bank Unless otherwise noted, comments indicated for that notice or to the offices indicated or the offices of the Board of regarding the applications must be of the Board of Governors. Comments received at the Reserve Bank indicated Governors not later than August 22, must be received not later than August or the offices of the Board of Governors 2016. 10, 2016. not later than August 15, 2016. A. Federal Reserve Bank of Kansas A. Federal Reserve Bank of Richmond A. Federal Reserve Bank of City (Dennis Denney, Assistant Vice (Adam M. Drimer, Assistant Vice Minneapolis (Jacquelyn K. Brunmeier, President) 1 Memorial Drive, Kansas President) 701 East Byrd Street, Assistant Vice President) 90 Hennepin City, Missouri 64198–0001: Richmond, Virginia 23261–4528. Avenue, Minneapolis, Minnesota 1. The Shirley Oliver Dynasty Trust, Comments can also be sent 55480–0291: Dallas, Texas; the James H. Oliver electronically to or 1. Citizens Bancorp, Inc., Cadott, Exempt Trust and the James H. Oliver [email protected]: Wisconsin; to engage, de novo, in Non-Exempt Trust, both of Grand extending credit and servicing loans 1. First Citizens Bancshares, Inc., Island, Nebraska; Gregory Oliver, pursuant to section 225.28(b)(1) of Raleigh, North Carolina; to acquire at Dallas, Texas; Robert Almquist, Wood Regulation Y. least 5 percent but less than 9 percent River, Nebraska; and Thomas Emerton, Board of Governors of the Federal Reserve Cairo, Nebraska; to retain control of of the voting securities of Carter Bank & Trust, Martinsville, Virginia. System, July 20, 2016. Platte Valley Cattle Company, Grand Margaret Shanks, Island, Nebraska, parent of Town and B. Federal Reserve Bank of Deputy Secretary of the Board. Country Bank, Ravenna, Nebraska. Minneapolis (Jacquelyn K. Brunmeier, [FR Doc. 2016–17481 Filed 7–22–16; 8:45 am] Board of Governors of the Federal Reserve Assistant Vice President) 90 Hennepin BILLING CODE 6210–01–P System, July 20, 2016. Avenue, Minneapolis, Minnesota Margaret Shanks, 55480–0291: Deputy Secretary of the Board. 1. The Bridger Company, Bridger, FEDERAL TRADE COMMISSION [FR Doc. 2016–17482 Filed 7–22–16; 8:45 am] Montana; to acquire 100 percent of the BILLING CODE 6210–01–P voting shares of Montana State Bank, Agency Information Collection Plentywood, Montana. Activities; Submission for OMB Review; Comment Request FEDERAL RESERVE SYSTEM Board of Governors of the Federal Reserve System, July 20, 2016. AGENCY: Federal Trade Commission Formations of, Acquisitions by, and Margaret Shanks, (‘‘Commission’’ or ‘‘FTC’’). Mergers of Bank Holding Companies Deputy Secretary of the Board. ACTION: Notice. [FR Doc. 2016–17480 Filed 7–22–16; 8:45 am] The companies listed in this notice SUMMARY: The information collection have applied to the Board for approval, BILLING CODE 6210–01–P requirements described below will be pursuant to the Bank Holding Company submitted to the Office of Management Act of 1956 (12 U.S.C. 1841 et seq.) and Budget (‘‘OMB’’) for review, as
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required by the Paperwork Reduction resulting information will be practically • calls made in response to general Act (‘‘PRA’’). The FTC is seeking public useful; (2) the accuracy of the FTC’s media advertising (with some important comments on its proposal to extend for burden estimates, including whether the exceptions) an additional three years the current methodology and assumptions used are • calls made in response to direct PRA clearance for information valid; (3) how to improve the quality, mail advertising (with some important collection requirements in its utility, and clarity of the disclosure exceptions) Telemarketing Sales Rule (‘‘TSR’’). That requirements; and (4) how to minimize • Political campaign calls protected clearance expires on August 31, 2016. the burden of providing the required by the First Amendment. DATES: Comments must be submitted on information to consumers. Public comments on the April 14, or before August 24, 2016. None of the public comments directly 2016 Notice ranged from a complaint about receiving repeated unsolicited ADDRESSES: Interested parties may file a addressed the above and, lacking ‘‘junk’’ telefaxes—to a complaint that comment online or on paper, by independent reason thus far to revise its the FTC fails to enforce the TSR—to a following the instructions in the burden estimates, the FTC will submit suggestion that the FTC consider ways Request for Comment part of the for OMB review, contemporaneous with to pro-actively thwart unsolicited calls SUPPLEMENTARY INFORMATION section this published Notice, its previously to mobile phones in a vein similar to below. Write ‘‘TSR PRA Comment, FTC published burden estimates on the which ‘‘NoMoRobo’’ (http:// File No. P094400’’ on your comment, TSR’s disclosure, recordkeeping, and www.nomorobo.com) blocks some and file your comment online at https:// reporting requirements. For more details unwanted robocalls (to date, Nomorobo ftcpublic.commentworks.com/ftc/ about the Rule requirements, the works only with some landline carriers, tsrrulepra2 by following the instructions background behind these information collection provisions, and the FTC’s and not with cell phones)—to a on the web-based form. If you prefer to suggestion, more generally, ‘‘that better file your comment on paper, mail your burden estimates and methodology behind them, see the April 14, 2016 automation [be devised] in addressing comment to the following address: the illegal calling issue.’’ Federal Trade Commission, Office of the Notice. To clarify for purposes of receiving In response, the FTC notes that Secretary, 600 Pennsylvania Avenue Federal Communication Commission NW., Suite CC–5610 (Annex J), public comments for this second Notice, the disclosure, recordkeeping, and rules, not the FTC’s TSR, address Washington, DC 20580, or deliver your ‘‘junk’’ telefaxes. (See https:// comment to the following address: reporting requirements for which the Commission sought public comment www.fcc.gov/stop-unwanted-calls.) To Federal Trade Commission, Office of the date, the FTC has brought at least 105 Secretary, Constitution Center, 400 7th concern such requirements imposed upon telemarketers and/or other sellers enforcement actions against companies Street SW., 5th Floor, Suite 5610 and telemarketers for Do Not Call, (Annex J), Washington, DC 20024. who are subject to, and not otherwise exempted under, the TSR. Some types abandoned call, robocall (i.e., automated FOR FURTHER INFORMATION CONTACT: of businesses are not covered by the dialing technology to make calls that Requests for additional information or TSR even though they conduct deliver prerecorded messages), and copies of the proposed information telemarketing campaigns that may Registry violations (https://www.ftc.gov/ requirements for the TSR should be involve some interstate telephone calls news-events/media-resources/do-not- addressed by mail to Craig Tregillus, to sell goods or services. These three call-registry/enforcement). A variety of Staff Attorney, Division of Marketing types of entities are not subject to the new technologies has increased the Practices, Bureau of Consumer FTC’s jurisdiction, and not covered by number of illegal telemarketing calls Protection, Federal Trade Commission, the TSR: made to telephone numbers on the Room CC–8607, 600 Pennsylvania Ave. • Banks, federal credit unions, and Registry. The net effect of these new NW., Washington, DC 20580, or by federal savings and loans technologies is that individuals and telephone to (202) 326–2970. • common carriers—such as long- companies who do not care about SUPPLEMENTARY INFORMATION: On April distance telephone companies and complying with the Registry or other 14, 2016, the Commission requested airlines—when they are engaging in telemarketing laws are able to make public comment on the information common carrier activity more illegal telemarketing calls cheaply collection requirements and related PRA • non-profit organizations—those and in a manner that makes it difficult burden estimates associated with the entities that are not organized to carry for the FTC and other law enforcement TSR. 81 FR 22082 (‘‘April 14, 2016 on business for their own, or their agencies to find them. The FTC Notice’’). Pursuant to the OMB members,’ profit. continues to solicit ideas and assistance regulations, 5 CFR part 1320, that The above types of entities are not to combat illegal automated calls: implement the PRA, 44 U.S.C. 3501 et covered by the TSR because they are https://www.ftc.gov/news-events/press- seq., the FTC is providing this second specifically exempt from the FTC’s releases/2015/03/ftc-announces-new- opportunity for public comment while jurisdiction. Nevertheless, any other for robocall-contests-combat-illegal- seeking OMB approval to renew profit individual or company that automated. Moreover, the FTC in clearance for those information contracts with one of these three types tandem with other law enforcement collection requirements. of entities to provide telemarketing agencies continues to bring actions In response to its prior request for services must comply with the TSR. against illegal telemarketing calls: public comment, the Commission Moreover, some types of calls also are https://www.ftc.gov/news-events/media- received ten comments, most of which not covered by the TSR, regardless of resources/do-not-call-registry/robocalls. were either non-germane or not directly whether the entity making or receiving The FTC also continues to track how responsive to the nature of the public the call is covered. These include: technology affects the Registry and the comments sought. As required by the • Unsolicited calls from consumers consumers and telemarketers who PRA, the Commission had sought public • calls placed by consumers in access it. comments specifically on the following: response to a catalog To reiterate, pursuant to its (1) Whether the recordkeeping, • business-to-business calls that do obligations under the PRA, the FTC disclosure, and reporting requirements not involve retail sales of nondurable seeks public comment on the necessity are necessary, including whether the office or cleaning supplies of its TSR recordkeeping, disclosure,
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and reporting requirements, whether the request in accordance with the law and DEPARTMENT OF DEFENSE information resulting from those the public interest. requirements will be practically useful, Postal mail addressed to the GENERAL SERVICES the accuracy of the FTC’s associated Commission is subject to delay due to ADMINISTRATION PRA burden estimates, and how to heightened security screening. As a improve the quality, utility, and clarity result, we encourage you to submit your NATIONAL AERONAUTICS AND of the TSR’s disclosure requirements comments online. To make sure that the SPACE ADMINISTRATION while also minimizing the burden on Commission considers your online [OMB Control No. 9000–0074; Docket 2016– affected entities to provide the required comment, you must file it at https:// 0053; Sequence 19] information to consumers. ftcpublic.commentworks.com/ftc/ Request for Comment: You can file a tsrrulepra2, by following the Submission for OMB Review; Contract comment online or on paper. For the instructions on the web-based form. Funding—Limitation of Costs/Funds Commission to consider your comment, When this Notice appears at http:// we must receive it on or before August AGENCY: Department of Defense (DOD), www.regulations.gov/#!home, you also General Services Administration (GSA), 24, 2016. Write ‘‘TSR PRA Comment, may file a comment through that Web FTC File No. P094400’’ on your and National Aeronautics and Space site. Administration (NASA). comment. Your comment—including If you file your comment on paper, your name and your state—will be ACTION: Notice of request for extension write ‘‘TSR PRA Comment, FTC File No. of an existing OMB clearance. placed on the public record of this P094400’’ on your comment and on the proceeding, including to the extent envelope, mail your comment to the SUMMARY: Under the provisions of the practicable, on the public Commission following address: Federal Trade Paperwork Reduction Act, the Web site, at http://www.ftc.gov/os/ Commission, Office of the Secretary, Regulatory Secretariat Division will be publiccomments.shtm. As a matter of 600 Pennsylvania Avenue NW., Suite submitting to the Office of Management discretion, the Commission tries to CC–5610 (Annex J), Washington, DC and Budget (OMB) a request to review remove individuals’ home contact 20580, or deliver your comment to the and approve an extension of a information from comments before following address: Federal Trade previously approved information placing them on the Commission Web Commission, Office of the Secretary, collection requirement concerning site. Because your comment will be made Constitution Center, 400 7th Street SW., limitation of costs/funds. public, you are solely responsible for 5th Floor, Suite 5610 (Annex J), DATES: Submit comments on or before making sure that your comment does Washington, DC 20024. If possible, August 24, 2016. not include any sensitive personal submit your paper comment to the ADDRESSES: Submit comments regarding information, like anyone’s Social Commission by courier or overnight this burden estimate or any other aspect Security number, date of birth, driver’s service. of this collection of information, license number or other state The FTC Act and other laws that the including suggestions for reducing this identification number or foreign country Commission administers permit the burden to: Office of Information and equivalent, passport number, financial collection of public comments to Regulatory Affairs of OMB, Attention: account number, or credit or debit card consider and use in this proceeding as Desk Officer for GSA, Room 10236, number. You are also solely responsible appropriate. The Commission will NEOB, Washington, DC 20503. for making sure that your comment does consider all timely and responsive Additionally submit a copy to GSA by not include any sensitive health public comments that it receives on or any of the following methods: information, like medical records or before August 24, 2016. For information • Regulations.gov: http:// other individually identifiable health on the Commission’s privacy policy, www.regulations.gov. Submit comments information. In addition, do not include including routine uses permitted by the via the Federal eRulemaking portal by any ‘‘[t]rade secret or any commercial or Privacy Act, see http://www.ftc.gov/ftc/ searching the OMB control number. financial information which is . . . privacy.htm. Select the link ‘‘Submit a Comment’’ privileged or confidential’’ as provided Comments on the recordkeeping, that corresponds with ‘‘Information in Section 6(f) of the FTC Act 15 U.S.C. disclosure, and reporting requirements Collection 9000–0074, Contract 46(f), and FTC Rule 4.10(a)(2), 16 CFR subject to review under the PRA should Funding—Limitation of Costs/Funds’’. 4.10(a)(2). In particular, do not include additionally be submitted to OMB. If Follow the instructions provided at the competitively sensitive information sent by U.S. mail, they should be ‘‘Submit a Comment’’ screen. Please such as costs, sales statistics, addressed to Office of Information and include your name, company name (if inventories, formulas, patterns devices, Regulatory Affairs, Office of any), and ‘‘Information Collection 9000– manufacturing processes, or customer Management and Budget, Attention: 0074, Contract Funding—Limitation of names. Desk Officer for the Federal Trade Costs/Funds’’ on your attached If you want the Commission to give Commission, New Executive Office document. your comment confidential treatment, Building, Docket Library, Room 10102, • Mail: General Services you must file it in paper form, with a 725 17th Street NW., Washington, DC Administration, Regulatory Secretariat request for confidential treatment, and 20503. Comments sent to OMB by U.S. Division (MVCB), 1800 F Street NW., you have to follow the procedure postal mail, however, are subject to Washington, DC 20405. ATTN: Ms. explained in FTC Rule 4.9(c).1 Your delays due to heightened security Flowers/IC 9000–0074, Contract comment will be kept confidential only precautions. Thus, comments instead Funding—Limitation of Costs/Funds. if the FTC General Counsel grants your should be sent by facsimile to (202) Instructions: Please submit comments 395–5806. only and cite Information Collection 1 In particular, the written request for confidential 9000–0074, Contract Funding— treatment that accompanies the comment must David C. Shonka, Limitation of Costs/Funds, in all include the factual and legal basis for the request, Acting General Counsel. and must identify the specific portions of the correspondence related to this comment to be withheld from the public record. See [FR Doc. 2016–17474 Filed 7–22–16; 8:45 am] collection. Comments received generally FTC Rule 4.9(c), 16 CFR 4.9(c). BILLING CODE 6750–01–P will be posted without change to http://
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www.regulations.gov, including any Total Annual Responses: 123,392. ADDRESSES: When commenting, please personal and/or business confidential Hours per Response: 0.33. reference the document identifier or information provided. To confirm Total Burden Hours: 40,719. OMB control number. To be assured receipt of your comment(s), please Obtaining Copies of Proposals: consideration, comments and check www.regulations.gov, Requesters may obtain a copy of the recommendations must be submitted in approximately two to three days after information collection documents from any one of the following ways: submission to verify posting (except the General Services Administration, 1. Electronically. You may send your allow 30 days for posting of comments Regulatory Secretariat Division (MVCB), comments electronically to http:// submitted by mail). 1800 F Street NW., Washington, DC www.regulations.gov. Follow the FOR FURTHER INFORMATION CONTACT: Ms. 20405, telephone 202–501–4755. Please instructions for ‘‘Comment or Kathlyn Hopkiins, Procurement cite OMB Control No. 9000–0074, Submission’’ or ‘‘More Search Options’’ Analyst, Office of Governmentwide Contract Funding—Limitation of Costs/ to find the information collection Acquisition Policy, GSA 202–969–7226 Funds, in all correspondence. document(s) that are accepting or email [email protected]. comments. William Clark, 2. By regular mail. You may mail SUPPLEMENTARY INFORMATION: Director, Office of Governmentwide written comments to the following A. Purpose Acquisition Policy, Office of Acquisition address: CMS, Office of Strategic Policy, Office of Governmentwide Policy. Firms performing under Operations and Regulatory Affairs, [FR Doc. 2016–17479 Filed 7–22–16; 8:45 am] Division of Regulations Development, incrementally funded, cost- BILLING CODE 6820–EP–P reimbursement Federal contracts are Attention: Document Identifier/OMB required to notify the contracting officer Control Number lll, Room C4–26– in writing whenever they have reason to 05, 7500 Security Boulevard, Baltimore, believe— DEPARTMENT OF HEALTH AND Maryland 21244–1850. (1) The costs the contractors expect to HUMAN SERVICES To obtain copies of a supporting incur under the contracts in the next 60 statement and any related forms for the days, when added to all costs previously Centers for Medicare & Medicaid proposed collection(s) summarized in incurred, will exceed 75 percent of the Services this notice, you may make your request estimated cost of the contracts; or (2) using one of following: [Document Identifier: CMS–R–297 (CMS– 1. Access CMS’ Web site address at The total cost for the performance of the L564)] contracts will be greater or substantially http://www.cms.hhs.gov/ PaperworkReductionActof1995. less than estimated. Agency Information Collection 2. Email your request, including your As a part of the notification, the Activities: Proposed Collection; address, phone number, OMB number, contractors must provide a revised Comment Request estimate of total cost. The frequency of and CMS document identifier, to this collection of information is AGENCY: Centers for Medicare & [email protected]. variable, contingent upon both funding Medicaid Services, HHS. 3. Call the Reports Clearance Office at and spending patterns. ACTION: Notice. (410) 786–1326. A notice was published in the Federal FOR FURTHER INFORMATION CONTACT: Register at 81 FR 21873 on April 13, SUMMARY: The Centers for Medicare & Reports Clearance Office at (410) 786– 2016. No comments were received. Medicaid Services (CMS) is announcing 1326. an opportunity for the public to However, three changes were made to SUPPLEMENTARY INFORMATION: the annual reporting burden estimates comment on CMS’ intention to collect conveyed in the preliminary 60-day information from the public. Under the Contents notice. First, the initial estimate Paperwork Reduction Act of 1995 (the This notice sets out a summary of the included data on certain fixed-price and PRA), federal agencies are required to use and burden associated with the cost-sharing contracts, subsequently publish notice in the Federal Register following information collections. More deemed not directly impacted by the concerning each proposed collection of detailed information can be found in FAR clauses 52.232–20 and 52.232–22; information (including each proposed each collection’s supporting statement those data points have been removed extension or reinstatement of an existing and associated materials (see from the estimate for this collection. collection of information) and to allow ADDRESSES). Accordingly, the number of contract 60 days for public comment on the CMS–R–297 (CMS–L564) Request for actions has been reduced. Secondly, the proposed action. Interested persons are Employment Information number of responses per respondent has invited to send comments regarding our been reassessed at one per year in lieu burden estimates or any other aspect of Under the PRA (44 U.S.C. 3501– of five; this is consistent with updated this collection of information, including 3520), federal agencies must obtain data, based on consultation with subject any of the following subjects: the approval from the Office of Management matter experts within the Government. necessity and utility of the proposed and Budget (OMB) for each collection of Third, the estimated time to produce information collection for the proper information they conduct or sponsor. each funding letter was reduced from 1⁄2 performance of the agency’s functions; The term ‘‘collection of information’’ is hour to 1⁄3 hour, as office software the accuracy of the estimated burden; defined in 44 U.S.C. 3502(3) and 5 CFR applications continue to improve, ways to enhance the quality, utility, and 1320.3(c) and includes agency requests making basic computations, word clarity of the information to be or requirements that members of the processing, and communication collected; and the use of automated public submit reports, keep records, or increasingly efficient. collection techniques or other forms of provide information to a third party. information technology to minimize the Section 3506(c)(2)(A) of the PRA B. Annual Reporting Burden information collection burden. requires federal agencies to publish a Respondents: 123,392. DATES: Comments must be received by 60-day notice in the Federal Register Responses per Respondent: 1. September 23, 2016. concerning each proposed collection of
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information, including each proposed Dated: July 20, 2016. Youth, and Families anticipates issuing extension or reinstatement of an existing William N. Parham, III, a new Program Instruction for federal collection of information, before Director, Paperwork Reduction Staff, Office fiscal year 2017. submitting the collection to OMB for of Strategic Operations and Regulatory Following the publication of the first approval. To comply with this Affairs. Federal Register notice, the Children’s requirement, CMS is publishing this [FR Doc. 2016–17478 Filed 7–22–16; 8:45 am] Bureau engaged in a number of outreach notice. BILLING CODE 4120–01–P activities to seek additional input from grantees and experts in the field on how Information Collection best to reduce grantee burden, ensure DEPARTMENT OF HEALTH AND that the reporting process was useful to 1. Type of Information Collection HUMAN SERVICES grantees, and maximize the ability to Request: Extension of a currently evaluate the program overall. These approved collection; Title of Administration for Children and efforts have resulted in the decision to Families Information Collection: Request for require one annual submission, as Employment Information; Use: Section opposed to two submissions. 1837(i) of the Social Security Act Submission for OMB Review; Comment Request The annual submission will include: provides for a special enrollment period (1) A self-assessment, and (2) a strategic for individuals who delay enrolling in Title: State Court Improvement plan. The self-assessment requires the Medicare Part B because they are Program. grantees to identify the topical work covered by a group health plan based on OMB No.: 0970–0307. areas of the last year, identify strengths, Description: The Court Improvement their own or a spouse’s current challenges and need for technical Program (CIP) is a mandatory formula employment status. Disabled assistance. The self-assessment has been grant funded under section 438 of the individuals with Medicare may also designed with user/grantee input with Social Security Act, and most recently delay enrollment because they have the intention of minimizing burden and reauthorized under the Child and large group health plan coverage based maximizing usefulness of the process Family Services Improvement and on their own or a family member’s and product to the grantee. The strategic Innovation Act of 2012 (Pub. L. 112–34). current employment status. When these plan identifies projects and activities The purpose of the CIP is to facilitate and intended results for the coming individuals apply for Medicare Part B, the handling of child welfare cases in they must provide proof that the group the courts. All 50 states, Puerto Rico, year. The strategic plan was also health plan coverage is (or was) based and the District of Columbia receive developed with grantee input. on current employment status. Form grants under the program. The program A full application will be due once Number: CMS–R–297 (CMS–L564) requires two submissions annually from every five years. The full application (OMB control number: 0938–0787); grantees that constitute information will require a five year strategic plan, Frequency: Once; Affected Public: collections under the Paperwork letters of commitment from the highest Private sector (Business or other for- Reduction Act. court of appeal and state title IV–E/IV– profits and Not-for-profit institutions); The purpose of this notice is to B agency, a budget narrative, and a list Number of Respondents: 15,000; Total request an extension of the Office of of all statewide task force members. Annual Responses: 15,000; Total Management and Budget Control Taken together, the changes reduce Annual Hours: 5,000. (For policy Number 0907–0307 permitting the overall burden hours from years past questions regarding this collection continued use of the information and those anticipated in the previous contact Lindsay Scully at 410–786– collections required by ACF–CB–PI–12– Federal Register notice by 6843.) 02. The burden estimates are provided approximately 50%. below. The Administration on Children, Respondents: Highest State Court.
ANNUAL BURDEN ESTIMATES
Number of Average Instrument Number of responses per burden hours Total burden respondents respondent per response hours
Full Application ...... 52 1 40 2,080 Updated Strategic Plan ...... 52 1 12 624 Self-Assessment ...... 52 1 36 1,772
Estimated Total Annual Burden information collection. Email address: information collection should be sent Hours: 4,476. [email protected]. directly to the following: Office of Management and Budget, Paperwork Additional Information OMB Comment Reduction Project, Email: OIRA_ Copies of the proposed collection may OMB is required to make a decision [email protected], Attn: be obtained by writing to the concerning the collection of information Desk Officer for the Administration for Administration for Children and between 30 and 60 days after Children and Families. Families, Office of Planning, Research publication of this document in the Robert Sargis, and Evaluation, 330 C Street SW., Federal Register. Therefore, a comment Reports Clearance Officer. Washington, DC 20201. Attention is best assured of having its full effect Reports Clearance Officer. All requests if OMB receives it within 30 days of [FR Doc. 2016–17403 Filed 7–22–16; 8:45 am] should be identified by the title of the publication. Written comments and BILLING CODE 4184–01–P recommendations for the proposed
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DEPARTMENT OF HEALTH AND data to achieve the quality, cost, and Independent of its a-Toxin Gene.’’ HUMAN SERVICES patient-centered goals of delivery HGT 20:751–758, July 2009 (hereafter system reforms. In addition, health referred to as ‘‘HGT 2009’’) (Retracted Health Resources and Services centers that do not currently have a 03/2010). Administration certified electronic health record (EHR) • Li, Z., Fallon, J., Mandeli, J., Wetmur, at all sites and in use by all providers J., & Woo, S.L.C. ‘‘Oncopathic Health Center Program must propose at a minimum to use Bacteriotherapy with Engineered C. AGENCY: Health Resources and Services DSHII funding to initiate and/or perfringens Spores is Superior and Administration, HHS. increase the number of sites and Complementary to Gemcitabine providers using a certified EHR. The Treatment in an Orthotopic Murine ACTION: Notice of class deviations from the requirements for competition and investments will help health centers Model of Pancreatic Cancer.’’ improve the quality and safety of application period for the health center Submitted for publication in Can. Res. services provided to the nation’s most program. (hereafter referred to as the ‘‘Can. Res. vulnerable populations. Manuscript 2009’’). SUMMARY: The Bureau of Primary Health FOR FURTHER INFORMATION CONTACT: • Li, Z., Fallon, J., Mandeli, J., Wetmur, Care (BPHC) is awarding funds to health Olivia Shockey, Expansion Division J., & Woo, S.L.C. ‘‘Oncopathic centers transitioning to value-based Director, Office of Policy and Program Bacteriotherapy with Cp/plc-/sod-/ models of care, improving the use of Development, Bureau of Primary Health PVL is Complementary to information in decision making, and Care, Health Resources and Services Gemcitabine Treatment for Pancreatic increasing engagement in delivery Administration at 301–443–9282 or Cancer in Mice.’’ Presented at the system transformation. [email protected]. 12th Annual Meeting of the American Society of Gene Therapy, May 27–30, SUPPLEMENTARY INFORMATION: Dated: July 18, 2016. Intended Recipient of the Award: 2009. James Macrae, • Approximately 1,380 Health Center R21 CA120017–02 Acting Administrator. • R21 CA120017 Final Progress Report Program award recipients. • Amount of Competitive Awards: [FR Doc. 2016–17497 Filed 7–22–16; 8:45 am] R01 CA130897–01 BILLING CODE 4165–15–P • R01 CA130897–01 A1 Approximately $90 million will be • R01 CA130897–01 A2 awarded in FY 2016 through a one-time • R01 CA130897–01 A2 Supplemental supplement. DEPARTMENT OF HEALTH AND Material Period of Supplemental Funding: HUMAN SERVICES • R01 CA148697–01 Anticipated 12 month project period is The JNCI 2008 and HGT 2009 papers September 1, 2016 through August 31, Office of the Secretary were retracted, and the Can. Res. 2017. CFDA Number: 93.224. Manuscript 2009 was withdrawn. Findings of Research Misconduct ORI found that the Respondent Authority: Section 330 of the Public AGENCY: Office of the Secretary, HHS. intentionally, knowingly, and recklessly Health Service Act, as amended (42 U.S.C. ACTION: Notice. engaged in research misconduct by 254b, as amended). falsely claiming to have generated Justification: Targeting the Nation’s SUMMARY: Notice is hereby given that recombinant Clostridium perfringens neediest populations and geographic the Office of Research Integrity (ORI) (Cp) strains, Cp/sod-, Cp/sod-/PVL, and areas, the Health Center Program has taken final action in the following Cp/plc-/sod-/PVL, to depict the effects supports more than 1,300 health centers case: of recombinant Cp strains on their that operate over 9,000 service delivery Zhiyu Li, Ph.D., Mount Sinai School ability to destroy cancer cells in a sites in every state, the District of of Medicine: Based upon the evidence murine model, when these bacterial Columbia, Puerto Rico, the Virgin and findings of an investigation report strains were not produced nor the data Islands, and the Pacific Basin. Nearly 23 by the Mount Sinai School of Medicine derived from them, and by falsifying million patients received (MSSM) and additional analysis histopathological data reported in fifty- comprehensive, culturally competent, conducted by ORI in its oversight seven (57) images in two (2) published quality primary health care services review, ORI found that Dr. Zhiyu Li, papers, one (1) submitted manuscript, through the Health Center Program former Postdoctoral Fellow, MSSM, two (2) poster presentations, and seven award recipients in 2014. engaged in research misconduct in (7) of Respondent’s supervisor’s grant The fiscal year (FY) 2016 Health research that was supported by National applications and fabricating the Center Program Delivery System Health Cancer Institute (NCI), National corresponding nineteen (19) summary Information Investment (DSHII) funding Institutes of Health (NIH), grant R21 bar graphs that were based on those will provide formula-based, one-time CA120017. ORI found that falsified and/ false images. support for the purchase of health or fabricated data were included in the Specifically, Respondent trimmed and information technology (health IT) following published papers, submitted used portions of Figure 6 (right panel) enhancements to accelerate health manuscript, poster presentation, and of a draft R21 CA120017–01 grant centers’ transition to value-based grant applications: application, representing an image of models of care, improve efforts to share • Li, Z., Fallon, J., Mandeli, J., Wetmur, liver tumor two (2) days after injection and use information to support better J., & Woo, S.L.C. ‘‘A Genetically of Cp/plc- bacteria, to represent decisions, and increase engagement in Enhanced Anaerobic Bacterium for unrelated results from different delivery system transformation efforts. Oncopathic Therapy of Pancreatic experiments in: Grant funds will help health centers Cancer.’’ JNCI 100(19):1389–1400, • Figures 5D and 7C (left panel), grant make strategic investments to enhance October 2008 (hereafter referred to as R21 CA120017 Final Progress Report their health IT, implement new clinical ‘‘JNCI 2008’’) (Retracted 02/2010). • Figure 6A, grant R01 CA130897–01 and administrative workflows, develop • Li, Z., Fallon, J., Mandeli, J., Wetmur, • Figures 9D and 17A (top left, middle, new reports, and better prepare J., & Woo, S.L.C. ‘‘The Oncopathic and right panels and bottom left providers and staff to use health IT and Potency of Clostridium perfringens is panel), grant R01 CA130897–01 A1
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• Figures 6D and 9C (left panel), grant represent different experimental and/or peer review committee, or as a R01 CA130897–01 A2 conditions in Figures 3C (middle panel), consultant. • Figure 2A (left, middle, and right 3B (left panel), 3C (right panel), and 3D FOR FURTHER INFORMATION CONTACT: panels) in R01 CA130897–01 A2 (left panel) in HGT 2009 respectively. Director, Office of Research Integrity, Supplemental Material Respondent trimmed and used • 1101 Wootton Parkway, Suite 750, Figures 4D and 7C (left panel), grant portions of Figure 4E (right panel) in Rockville, MD 20852, (240) 453–8800. R01 CA148697–01 JNCI 2008, representing pancreatic • Figure 4D (left panel), JNCI 2008 tumor from mice injected with Cp/sod- Kathryn M. Partin, • Figure 3A (left panel), HGT 2009 /PVL bacteria, to represent mice injected Director, Office of Research Integrity. • Figure 1A (left, middle and right with Cp/plc-/sod-/PVL bacteria in the [FR Doc. 2016–17495 Filed 7–22–16; 8:45 am] panels), Can. Res. Manuscript 2009 following: BILLING CODE 4150–31–P • Figure labeled ‘‘Intratumoral Bacterial • Figure 2, row B (right panel), R01 Titers and Quantification of Tumor CA130897 01 A2 Supplemental Necrosis’’ (top left panel), AGST 2009 Material DEPARTMENT OF HEALTH AND Poster presentation 2 • Figure 3, row D (right panel), HGT HUMAN SERVICES Respondent trimmed and used 2009 Indian Health Service portions of Figure 6C of R21 CA120017– • Figure entitled ‘‘Intratumoral bacterial 02, representing pancreatic tumor five Titers and Quantification of Tumor Office of Direct Service and (5) days after injection of Cp/sod- Necrosis’’ (bottom right panel), AGST Contracting Tribes National Indian bacteria, to represent results from 2009 Poster presentation 2 Health Outreach and Education— • different experiments in: Figure 1, row B (right panel), Can. Health Reform Funding Opportunity • Figures 5E, 6E and 7C (right panel), Res. Manuscript 2009 grant R21 CA120017 Final Progress The Respondent also fabricated the Announcement Type: New Limited Report resulting quantitative data in nineteen Competition. • Figures 9E, 10E, and 13C (right panel), (19) summary bar-graphs based on the Funding Announcement Number: grant R01 CA130897–01 A1 false histopathological images in: HHS–2016–IHS–NIHOE–3–Health– • Reform–0001. Figures 6E, 7E and 9C (right panel), • Figure 7C, grant R21 CA120017 Final grant R01 CA130897–01 A2 Catalog of Federal Domestic • Progress Report Assistance Number: 93.933. Figures 4E, 5E and 7C (right panel), • Figures 13C and 17B, grant R01 grant R01 CA148697–01 CA130897–01 A1 Key Dates • Figure 4D (right panel), JNCI 2008 • • Figure 9C, grant R01 CA130897–01 Application Deadline Date: August Figure 3A (middle and right panels), A2 HGT 2009 25, 2016. • Figure 2A–B, grant R01 CA130897–01 Review Date: August 29, 2016. • Figure labeled ‘‘Intratumoral Bacterial A2 Supplemental Material Earliest Anticipated Start Date: Titers and Quantification of Tumor • Figure 7C, grant R01 CA148697–01 September 15, 2016. Necrosis’’ (top right and middle • Figures 4A, B, D, and E, JNCI 2008 Proof of Non-Profit Status Due Date: panels), AGST 2009 Poster • Figures 3A–D, HGT 2009 August 25, 2016. presentation 2 • Figure 1C, Can. Res. Manuscript 2009 Respondent trimmed and used a • Figure entitled ‘‘Oncopathic Potency I. Funding Opportunity Description portion of a figure that was reported as of Cp/sod-/PVL in Tumor-bearing Statutory Authority mouse pancreatic tumor tissue treated Mice’’ graph (C) in AGST 2009 Poster The Indian Health Service (IHS) with control liposomes in four (4) presentation 1 Office of Direct Service and Contracting • figures (Figure 6D in R21 CA120017 Figure entitled ‘‘Intratumoral Tribes (ODSCT) and the Office of Final Progress Report, Figure 10D in Bacterial Titers and Quantification of Resource Access and Partnerships R01 CA130897–01 A1, Figure 7D in R01 Tumor Necrosis’’ top and bottom row (ORAP) is accepting cooperative CA130897–01 A2, and Figure 5D in R01 graphs in AGST 2009 Poster agreement applications for the National CA148697–01), to represent results from presentation 2 Indian Health Outreach and Education mouse pancreatic tumor tissue not The following administrative actions III (NIHOE–III)–Health Reform funding treated with control liposomes in: have been implemented for a period of opportunity that includes outreach and • Figures 7C (middle panel), grant R21 five (5) years, beginning on July 3, 2016: education activities on the following: CA120017 Final Progress Report (1) Respondent is debarred from any The Patient Protection and Affordable • Figure 13C (left panel), grant R01 contracting or subcontracting with any Care Act, Public Law 111–148, as CA130897–01 A1 agency of the United States Government amended by the Health Care and • Figures 9C (middle panel), grant R01 and from eligibility for, or involvement Education Reconciliation Act of 2010, CA130897–01 A2 in, nonprocurement programs of the Public Law 111–152, collectively known • Figure 7C (middle panel), grant R01 United States Government referred to as as the Affordable Care Act (ACA), and CA148697–01 ‘‘covered transactions’’ pursuant to the Indian Health Care Improvement • Figure 4D (middle panel), JNCI 2008 HHS’ Implementation (2 CFR part 376 et • Act (IHCIA), as amended. This program Figure entitled ‘‘Oncopathic Potency seq) of Office of Management and is authorized under the Snyder Act, of Cp/sod-/PVL in Tumor-bearing Budget (OMB) Guidelines to Agencies codified at 25 U.S.C. 13, and the Mice’’ row C (left panel), AGST 2009 on Governmentwide Debarment and Transfer Act, codified at 42 U.S.C. Poster presentation 1 Suspension, 2 CFR part 180 (collectively 2001(a). This program is described in Respondent falsified at least four (4) the ‘‘Debarment Regulations’’); and the Catalog of Federal Domestic and possibly eight (8) images by using (2) Respondent is prohibited from Assistance under 93.933. and relabeling Figures 4A (left panel), serving in any advisory capacity to the 4B (right panel), and 4B (left panel) in U.S. Public Health Service (PHS) Background JNCI 2008 and Figure 1B (center panel) including, but not limited to, service on The NIHOE III—Health Reform of Cancer Res. Manuscript 2009, to any PHS advisory committee, board, program carries out health program
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objectives in the American Indian/ training, education and outreach on a awards that are selected for funding Alaska Native (AI/AN) community in national scale. This limitation ensures under this announcement. the interest of improving the quality of that the awardee will have (1) a national Two entities applying separately to and access to health care for all 567 information-sharing infrastructure accomplish appropriately divided Federally-recognized Tribes including which will facilitate the timely program activities: Tribal governments operating their own exchange of information between the 1. One entity will apply for $75,000 health care delivery systems through HHS, Tribes, and Tribal organizations per FY or $225,000 total. self-determination contracts and on a broad scale; (2) a national 2. The second entity will apply for the compacts with the IHS and Tribes that perspective on the needs of AI/AN remaining $125,000 per FY or $375,000 continue to receive health care directly communities that will ensure that the total. from the IHS. This program addresses information developed and Anticipated Number of Awards health policy and health program issues disseminated through the projects is and disseminates educational culturally appropriate, useful and Approximately two awards will be information to all AI/AN Tribes and addresses the most pressing needs of AI/ issued under this program villages. These Health Reform awards AN communities; and (3) established announcement. require that public forums be held at relationships with Tribes and Tribal Project Period Tribal educational consumer organizations that will foster open and conferences to disseminate changes and The project period will be for three honest participation by AI/AN years and will run consecutively from updates on the latest health care communities. Regional and local information. These awards also require September 15, 2016 to September 14, organizations will not have the 2019. that regional and national meetings be mechanisms in place to conduct coordinated for information communication on a national level, nor Cooperative Agreement dissemination as well as for the will they have an accurate picture of the Cooperative agreements awarded by inclusion of planning and technical health care needs facing AI/ANs the HHS are administered under the assistance and health care nationwide. Organizations with less same policies as a grant. The funding recommendations on behalf of experience will lack the established agency (IHS) is required to have participating Tribes to ultimately inform relationships with Tribes and Tribal substantial programmatic involvement IHS and the Department of Health and organizations throughout the country in the project during the entire award Human Services (HHS) based on Tribal that will facilitate participation and the segment. Below is a detailed description input through a broad based consumer open and honest exchange of of the level of involvement required for network. information between Tribes and HHS. both IHS and the grantee. IHS will be Purpose However, awardees will be expected to responsible for activities listed under work with regional and local The purpose of this IHS cooperative section A and the grantee will be organizations to achieve the goals agreement announcement is to responsible for activities listed under herein. With the limited funds available encourage national Indian section B as stated: for these health reform projects, HHS organizations, IHS, and Tribal partners must ensure that the training, education Substantial Involvement Description for to work together to conduct ACA/IHCIA and outreach efforts described in this Cooperative Agreement training and technical assistance throughout Indian Country. Under the announcement reach the widest A. IHS Programmatic Involvement audience possible in a timely fashion, Limited Competition NIHOE Health (1) The IHS assigned program official are appropriately tailored to the needs Reform Cooperative Agreement will work in partnership with the of AI/AN communities throughout the program, the overall program objective awardee in all decisions involving country, and come from a source that is to improve Indian health care by strategy, hiring of consultants, AI/ANs recognize and trust. For these conducting training and technical deployment of resources, release of reasons, this is a limited competition assistance across AI/AN communities to public information materials, quality announcement. ensure that the Indian health care assurance, coordination of activities, system and all AI/ANs are prepared to II. Award Information any training activities, reports, budget take advantage of the new health Type of Award and evaluation. Collaboration includes insurance coverage options which will data analysis, interpretation of findings improve the quality of and access to Cooperative Agreement. and reporting. health care services and increase Estimated Funds Available (2) The IHS assigned program official resources for AI/AN health care. The will approve the training curriculum goal of this program announcement is to The total amount of funding content, facts, delivery mode, pre- and coordinate and conduct training and identified for the current funding cycle post-assessments, and evaluation before technical assistance on a national scale which covers fiscal years (FY) 2016– any materials are printed and the for the 567 Federally-recognized Tribes 2018 is approximately $600,000. training is conducted. and Tribal organizations on the changes, Individual award amounts are (3) The IHS assigned program official improvements and authorities of the anticipated to be $200,000 per FY, will review and approve all of the final ACA and IHCIA and the health respectively, if awarded to two entities draft products before they are published insurance options available to AI/AN applying separately. Further details are and distributed. through the Health Insurance provided in the applicable section B. Grantee Cooperative Agreement Marketplace. components. The amount of funding available for both competing and Award Activities Limited Competition Justification continuation awards issued under this The awardee must comply with Competition for the award included announcement is subject to the relevant Office of Management and in this announcement is limited to availability of appropriations and Budget (OMB) Circular provisions national Indian organizations with at budgetary priorities of the Agency. The regarding lobbying, any applicable least ten years of experience providing IHS is under no obligation to make lobbying restrictions provided under
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other law, and any applicable restriction 1. Develop and implement a outreach focusing on four consumer on the use of appropriated funds for communications strategy for each FY as groups: (1) Consumers; (2) Tribal lobbying activities. Awardees are follows: Leadership and Membership; (3) Tribal expected to: a. Applicant 1—$75,000 per FY Employers; and (4) Indian Health (1) Foster collaboration across the totaling $225,000 for all three years. Facility Administrators. Indian health care system to encourage i. Educate AI/ANs on the available • The awardee shall provide and facilitate an open exchange of ideas health coverage options under the ACA; measurable outcomes and performance and open communication regarding ii. Focus on the needs of Direct improvement activities for ACA/IHCIA training and technical assistance on the Services Tribes, including: Providing outreach and education actions. ACA and IHCIA provisions. policy review and analysis of health • The awardee shall share (2) Conduct training and technical care issues, training Tribal leaders on information, innovative ideas, assistance on the ACA and IHCIA and the health insurance options available challenges and solutions, and provide the changes and requirements that will under the ACA and sharing outreach progress reports. and education best practices among affect AI/ANs either independently or Policy Analysis Direct Service Tribes. jointly via a partnership as described • previously. The purpose of this IHS iii. Develop a technical assistance The awardee shall develop, monitor cooperative agreement announcement is plan and provide technical assistance to and review ACA review metrics that to encourage national and regional NIHOE Health Reform partners, Tribal provide indicators of AI/AN Indian organizations and IHS and Tribal leaders, Tribal employers and Direct participation in marketplace plans and (I/T) partners to work together to Service Tribes on ACA/IHCIA I/T participation as network providers conduct ACA/IHCIA training and implementation across the Indian health in the marketplace and disseminate technical assistance throughout Indian care system. ACA policy information at national Country. The project goals are three-fold iv. Work with NIHOE Health Reform conferences and through IHS advisory for the IHS and the selected entities: partners and Direct Service Tribes to committees. • The awardee shall review and (i) Materials—Develop and achieve economies of scale and reduce coordinate ACA/IHCIA policy disseminate (upon IHS approval) duplication of AI/AN training and recommendations and strategies by the training materials about the ACA/IHCIA outreach and education materials, I/T. impact on the Indian health care system including the development of cross- • The awardee shall ensure the including: Educating consumers on the cutting ACA/IHCIA content specific to training curriculum content addresses health care insurance options available, the Indian health care system. v. Work with NIHOE Health Reform all new regulations and operations for educating the I/T system on the process partners and Direct Service Tribes to implementing the ACA/IHCIA for enrollment (with a special focus on enhance collaboration with other requirements. the Certified Application Counselor Federal agency programs, local, state, (CAC) and Hardship Exemption Information Sharing and Technical Tribal and national partners. requirements) and eligibility Assistance b. Applicant 2—$125,000 per FY determinations, and maximizing totaling $375,000 for all three years. • The awardee shall collaborate and revenue opportunities. i. Educate Tribal leaders and Tribal coordinate to ensure training and (ii) Training—Develop and implement employers on the health insurance educational materials are widely an ACA/IHCIA implementation training options under the ACA including the distributed to Tribal leaders and plan and individual training sessions Small Business Health Options Program frontline enrollment personnel. aimed at educating all Indian health and Tribal self-insurance; and • The awardee shall conduct and care system stakeholders on health care ii. Develop a technical assistance plan record monthly meetings with NIHOE system impact and changes, specifically and provide technical assistance to Health Reform national and regional implementation in the different types of NIHOE Health Reform partners, Tribal principals to share information, share marketplaces, the role of Health leaders, Tribal employers and Direct best practices, and provide progress Insurance Marketplace assisters (special Service Tribes on ACA/IHCIA reports. emphasis on CAC), Navigators, and the implementation across the Indian health • The awardee shall plan Hardship Exemption for AI/ANs. care system. communication around key moments or Collaborate and partner with other The following key components need events through the grant period to national organizations to identify ways to be addressed in the work plan: increase education efforts. to take full advantage of the health care Develop a national coordination • The awardees shall identify I/T coverage options offered through the strategy for the Health Reform project to audiences that may have challenges Health Insurance Marketplace. ensure a shared vision and mission with enrollments and tailor outreach (iii) Technical Assistance—Provide amongst all partners and convene efforts accordingly. technical assistance to I/T on the ACA/ partners on a regular basis. • The awardees shall develop IHCIA implementation. Work with these Applicants should describe plans for communications vehicles to showcase entities to assess the training needs, addressing the following: positive impact stories of I/T with ACA/ identify innovations in ACA/IHCIA IHCIA. implementation, including technology, Outreach and Education • The awardee shall develop and and promote the dissemination and • The awardee shall coordinate and provide templates for Tribal, IHS, and replication of solutions to the challenges develop a multiple strategy education community outreach and education. faced by I/T in implementing the ACA/ and outreach training approach for I/T • The awardee shall conduct IHCIA through the identification and that reaches the widest audience workshops and/or presentations promotion of best practices. possible in a timely fashion, including, but not limited to, the appropriately tailored to the needs of successes of the ACA/IHCIA promising Summary of Tasks To Be Performed AI/AN communities. practices and/or best practices of I/T The project will conduct the • The awardee shall conduct regional programs at three national conferences following major activities: and national ACA/IHCIA education and (venue and content of presentations to
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be agreed upon in advance by the • The awardee shall attend regularly by grantee are secondary reviews awardee and the IHS assigned program scheduled, in-person and conference intended solely to identify programs in official). call meetings with the IHS assigned need of technical assistance.] • The awardee will provide postings program official team to discuss the Æ The awardee shall help the IHS on ACA/IHCIA outreach and education awardee’s services and outreach and assigned program official identify related information for appropriate Web education related issues. The awardee challenges faced by participating I/T site dissemination. must provide meeting minutes that and assist in developing solutions. • The awardee will develop and/or highlight the awardee’s specific • Copies of educational and practice- maintain a comprehensive list of ACA/ involvement and participation. based information provided to I/T IHCIA outreach and education program • The awardee shall obtain approval programs (electronic form and one hard development and business practice from the IHS assigned program official copy). guidelines for use by I/T programs. for all PowerPoint presentations, • Copies of all promotional and • The awardee shall act as a resource electronic content, and other materials, educational materials provided to I/T broker and identify subject matter including mass emails, developed by programs and other projects (electronic experts to conduct trainings and awardee pursuant to this award and any form and one hard copy). technical assistance for implementation supplemental awards prior to the • Copies of all promotional materials of the ACA enrollments. presentation or dissemination of such • provided to media and other outlets The awardee shall provide quarterly materials to any party, allowing for a (electronic form and one hard copy). articles for national and local media reasonable amount of time for IHS • Copies of all articles published outlets and I/T news information review. (electronic form and one hard copy). • sources, focusing on the successful The awardee shall conduct and Submit semi-annual and annual impact and outcomes of ACA/IHCIA in record monthly meetings with NIHOE progress reports to ORAP and ODSCT, Tribal communities, available resources, national and regional principals to share due no later than 30 days after the and funding opportunities. information and provide progress reporting cycle, attaching any necessary • The awardee shall meet with reports. • documentation. For example: Meeting stakeholders to identify their needs from The awardee shall assess and minutes, correspondence with I/T a community level and monitor level of provide measurable outcomes and programs, samples of all written access to education and outreach performance improvement activities for materials developed including materials (i.e., pharmacy bags, palm ACA/IHCIA outreach and education brochures, news articles, videos, and cards, posters, payroll inserts, etc.). actions both quantitative and radio and television ads to adequately Training qualitative. document accomplishments. 1. The awardee shall monitor and • The awardee will submit a • The awardee shall re-evaluate all track I/T facility enrollment data and ACA/IHCIA training material available deliverable schedule to the program identify challenges and opportunities official not later than 30 days after the for AI/AN, present findings to IHS, and for outreach and education activities mutually decide on new materials. start date. and report findings on a regular basis. The IHS will provide guidance and • The awardee shall record training 2. Identify successes and gaps in assistance as needed. Copies of all sessions and make the recordings enrollment and develop future requirements must be submitted to the available to the I/T and AI/AN enrollment campaigns and report IHS ODSCT; IHS ORAP; and IHS community on the Web sites of the findings on a regular basis. national Indian organizations and Deputy Director. Requirements partners. A. Collaboration and Coordination To • The awardee shall provide focused • Attendance at regularly scheduled Ensure Training and Materials Are ACA/IHCIA education that translates in meetings between awardee and the IHS Widely Distributed everyday language explaining the assigned program official, evidenced by benefits of the ACA and the special meeting minutes which highlight the 1. Evaluate all available ACA/IHCIA provisions for Indians. The awardee, awardee’s specific involvement and training material available for AI/AN because involvement of community participation. and create additional materials as based partners and local leadership • Participation on outreach and needed that are related to ACA/IHCIA. from all I/T levels is an important factor education conference calls identified by 2. Record, track, and coordinate in the success of any enrollment the IHS assigned program official, information sharing activities process, shall develop modified training evidenced by meeting agenda and (enrollments, trainings, information briefs for Tribal health directors, chief minutes as needed. shared, meetings, updates, etc.) with executive officers, health care • Report of outcomes at conferences IHS Offices: ODSCT, ORAP and 11 IHS professionals, and Tribal leaders to (meeting booths, workshops and/or area offices including Albuquerque assist with outreach efforts. presentations provided): Area, Bemidji Area, Billings Area, • The awardee shall provide ongoing 1. National Advisory Committee California Area, Great Plains Area, AI/AN consumers training on tools conference calls and meetings. Nashville Area, Navajo Area, Oklahoma developed for State Based Marketplace 2. IHS area conference calls. City Area, Phoenix Area, Portland Area (SBM) implementation. 3. IHS area and national webinars. and Tucson Area. 4. Other AI/AN national conferences. 3. Record training sessions and Reporting • Completed programmatic reviews of describe how they will be made • The awardee shall provide semi- semi and annual progress reports of available on the Web sites of the annual reports documenting and outreach and education projects, in national Indian organizations and describing progress and order to identify projects that require partners. accomplishment of the activities technical assistance. [Note: This review 4. Describe how to ensure the training specified above, attaching any necessary is not to replace IHS review of outreach curriculum content addresses all new documentation to adequately document and education programs. The regulations implementing the ACA and accomplishments. programmatic reviews to be conducted IHCIA requirements.
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5. Participate in monthly meetings 1. Eligibility The following documentation is with NIHOE Health Reform national and To be eligible for this ‘‘New Limited required: regional principals to share information competition Announcement’’, an Proof of Non-Profit Status and provide progress reports. applicant must be a 501(c)(3) non-profit 6. Provide ongoing training on tools Organizations claiming non-profit entity who meets the following criteria: status must submit proof. A copy of the developed for SBM implementation. Eligible applicants that can apply for 7. Because involvement of community 501(c)(3) Certificate must be received this funding opportunity are national with the application submission by the based partners and local leadership Indian organizations. from all I/T levels is an important factor Application Deadline Date listed under The national Indian organizations the Key Dates section on page one of in the success of any enrollment must have the infrastructure in place to process, develop modified training this announcement. accomplish the work under the An applicant submitting any of the briefs for other community leaders to proposed program. assist with outreach efforts. above additional documentation after Eligible entities must have the initial application submission due B. Work Plan demonstrated expertise in the following date is required to ensure the areas: 1. Provide a Work Plan that describes • information was received by the IHS by Representing all Tribal governments obtaining documentation confirming the sequence of specific activities and and providing a variety of services to steps that will be used to carry out each delivery (i.e., FedEx tracking, postal Tribes, area health boards, Tribal return receipt, etc.). of the objectives, including updates organizations, and Federal agencies, and about progress implementing the ACA. playing a major role in focusing IV. Application and Submission 2. Report the number of CAC staff attention on Indian health care needs, Information trained and employed, network resulting in improved health outcomes 1. Obtaining Application Materials contracts, additional consumers for AI/ANs. enrolled in Medicaid, Children’s Health • Promoting and supporting Indian The application package and detailed Insurance Program (CHIP) or health care education and coordinating instructions for this announcement can marketplace plan, and in-network efforts to inform AI/AN of Federal be found at http://www.Grants.gov or contracts with a Qualified Health Plans decisions that affect Tribal government http://www.ihs.gov/dgm/funding/. (QHP) in the Marketplace using the interests including the improvement of Questions regarding the electronic Model QHP Addendum for Indian Indian health care. application process may be directed to Health Care Providers. Describe • Administering national health Mr. Paul Gettys at (301) 443–2114 or outreach and enrollment activities, policy and health programs. (301) 443–5204. partnerships, and planning. • Maintaining a national AI/AN 2. Content and Form Application 3. Include a detailed time line that constituency and clearly supporting Submission links activities to project objectives for critical services and activities within the The applicant must include the every 12-month budget period for the IHS mission of improving the quality of project narrative as an attachment to the three years of funding. health care for AI/AN people. application package. Mandatory 4. Identify challenges, both • Supporting improved health care in documents for all applicants include: opportunities and barriers that are likely Indian Country. • Table of contents. to be encountered in designing and • Providing education and outreach • implementing the activities and Abstract (one page) summarizing on a national scale (the applicant must the project. approaches that will be used to address provide evidence of at least ten years of • such challenges. Application forms: experience in this area). Æ SF–424, Application for Federal 5. Describe communication methods Note: Please refer to Section IV.2 Assistance. with partners including plans for (Application and Submission Æ SF–424A, Budget Information— improving communication. Information/Subsection 2, Content and Non-Construction Programs. C. Evaluation Form of Application Submission) for Æ SF–424B, Assurances—Non- additional proof of applicant status Construction Programs. 1. Provide a plan for assessing the documents required such as proof of • Budget Justification and Narrative achievement of the project’s objectives non-profit status, etc. (must be single spaced and not exceed and for evaluating changes in the 2. Cost Sharing or Matching five pages). specific problems and contributing • Project Narrative (must be single factors. The IHS does not require matching spaced and not exceed ten pages for 2. Identify performance measures by funds or cost sharing for grants or each of the two components). which the project will track its progress cooperative agreements. Æ Background information on the over time. 3. Other Requirements organization. 3. Secure agreement with IHS on Æ Proposed scope of work, objectives, evaluation methods and deadlines. If application budgets exceed the and activities that provide a description highest dollar amount outlined under D. Budget of what will be accomplished, including the ‘‘Estimated Funds Available’’ a one-page Timeframe Chart. Provide a functional categorically section within this funding • Tribal letters of support (Optional). itemized budget and program narrative announcement, the application will be • Letter of support from justification that supports considered ineligible and will not be organization’s board of directors. accomplishing the program objectives, reviewed for further consideration. If • 501(c)(3) Certificate (if applicable). activities, and outcomes within the deemed ineligible, IHS will not return • Position descriptions of key timeframes specified. the application. The applicant will be personnel. notified by email by the Division of • Resumes of key personnel. III. Eligibility Information Grants Management (DGM) of this • Contractor/Consultant resumes or I. decision. qualifications and scope of work.
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• Disclosure of Lobbying Activities additional details about what must be match the scope of work described in (SF–LLL). included in the narrative. the project narrative. The budget • Certification Regarding Lobbying narrative should not exceed five pages. (GG-Lobbying Form). Part A: Program Information (4 Page • Copy of current Negotiated Indirect Limitation for Each Component) 3. Submission Dates and Times Cost rate (IDC) agreement (required) in Section 1: Needs Applications must be submitted order to receive IDC. Describe how the national Indian electronically through Grants.gov by • Organizational Chart (optional). organization(s) has the experience to 11:59 p.m. Eastern Daylight Time (EDT) • Documentation of current OMB A– provide outreach and education efforts on the Application Deadline Date listed 133 required Financial Audit (if regarding the pertinent changes and in the Key Dates section on page one of applicable). updates in health care listed herein. this announcement. Any application Acceptable forms of documentation received after the application deadline include: Part B: Program Planning and will not be accepted for processing, nor Æ Email confirmation from Federal Evaluation (4 Page Limitation for Each will it be given further consideration for Audit Clearinghouse (FAC) that audits Component) funding. Grants.gov will notify the were submitted; or Section 1: Program Plans applicant via email if the application is Æ Face sheets from audit reports. Describe fully and clearly the rejected. These can be found on the FAC Web direction the national Indian If technical challenges arise and site: http://harvester.census.gov/sac/ organization plans to address the assistance is required with the dissem/accessoptions.html?submit=Go NIHOE III Health Reform requirements, electronic application process, contact +To+Database. including how the national Indian Grants.gov Customer Support via email organization plans to demonstrate to [email protected] or at (800) 518– Public Policy Requirements improved health education and 4726. Customer Support is available to All Federal-wide public policies outreach services to all 567 Federally- address questions 24 hours a day, 7 days apply to IHS grants and cooperative recognized Tribes. Include proposed a week (except on Federal holidays). If agreements with exception of the timelines as appropriate and applicable. problems persist, contact Mr. Paul discrimination policy. Section 2: Program Evaluation Gettys ([email protected]), DGM Grant Systems Coordinator, by Requirements for Project and Budget Describe fully and clearly how the telephone at (301) 443–2114 or (301) Narratives outreach and education efforts will impact changes in knowledge and 443–5204. Please be sure to contact Mr. A. Project Narrative: This narrative awareness in Tribes and Tribal Gettys at least ten days prior to the should be a separate Word document organizations to encourage appropriate application deadline. Please do not that is no longer than ten pages for each changes by increasing knowledge and contact the DGM until you have of the two components for a total of 20 awareness resulting in informed received a Grants.gov tracking number. pages: $600,000 to conduct ACA/IHCIA choices. Identify anticipated or expected In the event you are not able to obtain education and outreach training and benefits for the Tribal constituency. a tracking number, call the DGM as soon technical assistance for three as possible. consecutive years. Project narrative Part C: Program Report (2 Page If the applicant needs to submit a must: Be single-spaced, be type written, Limitation for Each Component) paper application instead of submitting have consecutively numbered pages, use Section 1: Describe major electronically through Grants.gov, a black type not smaller than 12 accomplishments over the last 36 waiver must be requested. Prior characters per one inch, and be printed months. approval must be requested and on one side only of standard size 81⁄2″ Identify and describe significant obtained from Mr. Robert Tarwater, x 11″ paper. program achievements associated with Director, DGM, (see Section IV.6 below Be sure to succinctly address and the delivery of quality health outreach for additional information). The waiver answer all questions listed under the and education. Provide a comparison of must: (1) Be documented in writing narrative and place them under the the actual accomplishments to the goals (emails are acceptable), before evaluation criteria (refer to Section V.1, established for the project period, or if submitting a paper application, and (2) Evaluation criteria in this applicable, provide justification for the include clear justification for the need announcement) and place all responses lack of progress. to deviate from the required electronic and required information in the correct Section 2: Describe major activities grants submission process. A written section (noted below), or they shall not over the last 36 months. waiver request must be sent to be considered or scored. These Please provide an overview of [email protected] with a copy to narratives will assist the Objective significant program activities and [email protected]. Once the Review Committee (ORC) in becoming impacts (meaningful changes made), waiver request has been approved, the familiar with the applicant’s activities associated with the delivery of quality applicant will receive a confirmation of and accomplishments prior to this health outreach and education. This approval email containing submission cooperative agreement award. If the section should address significant instructions and the mailing address to narrative exceeds the page limit, only program activities and impacts submit the application. A copy of the the first ten pages of each component including those related to the written approval must be submitted will be reviewed. The ten-page limit for accomplishments listed in the previous along with the hardcopy of the the narrative does not include the work section. application that is mailed to DGM. plan, standard forms, table of contents, B. Budget Narrative: This narrative Paper applications that are submitted budget, budget justifications, narratives, must include a line item budget with a without a copy of the signed waiver and/or other appendix items. narrative justification for all from the Director of the DGM will not There are three parts to the narrative: expenditures identifying reasonable and be reviewed or considered for funding. Part A—Program Information; Part B— allowable costs necessary to accomplish The applicant will be notified via email Program Planning and Evaluation; and the goals and objectives as outlined in of this decision by the Grants Part C—Program Report. See below for the project narrative. Budget should Management Officer of the DGM. Paper
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applications must be received by the • Upon contacting Grants.gov, obtain Accordingly, all IHS grantees must DGM no later than 5:00 p.m., EDT, on a tracking number as proof of contact. notify potential first-tier sub-recipients the Application Deadline Date listed in The tracking number is helpful if there that no entity may receive a first-tier the Key Dates section on page one of are technical issues that cannot be sub-award unless the entity has this announcement. Late applications resolved and a waiver from the agency provided its DUNS number to the prime will not be accepted for processing or must be obtained. grantee organization. This requirement • considered for funding. If it is determined that a waiver is ensures the use of a universal identifier needed, the applicant must submit a 4. Intergovernmental Review to enhance the quality of information request in writing (emails are available to the public pursuant to the Executive Order 12372 requiring acceptable) to [email protected] Transparency Act. intergovernmental review is not with a copy to [email protected]. applicable to this program. Please include a clear justification for System for Award Management (SAM) 5. Funding Restrictions the need to deviate from the standard electronic submission process. Organizations that were not registered • Pre-award costs are not allowable. • If the waiver is approved, the with Central Contractor Registration and • The available funds are inclusive of application should be sent directly to have not registered with SAM will need direct and appropriate indirect costs. the DGM by the Application Deadline to obtain a DUNS number first and then • Only one grant/cooperative Date listed in the Key Dates section on access the SAM online registration agreement will be awarded per page one of this announcement. through the SAM home page at https:// applicant. • Applicants are strongly encouraged • www.sam.gov (U.S. organizations will IHS will not acknowledge receipt of not to wait until the deadline date to also need to provide an Employer applications. begin the application process through Identification Number from the Internal 6. Electronic Submission Requirements Grants.gov as the registration process for Revenue Service that may take an SAM and Grants.gov could take up to All applications must be submitted additional 2–5 weeks to become active). fifteen working days. Completing and submitting the electronically. Please use the http:// • Please use the optional attachment registration takes approximately one www.Grants.gov Web site to submit an feature in Grants.gov to attach hour to complete and SAM registration application electronically and select the additional documentation that may be will take 3–5 business days to process. ‘‘Find Grant Opportunities’’ link on the requested by the DGM. homepage. Download a copy of the • All applicants must comply with Registration with the SAM is free of application package, complete it offline, any page limitation requirements charge. Applicants may register online and then upload and submit the described in this funding at https://www.sam.gov. completed application via the http:// announcement. Additional information on www.Grants.gov Web site. Electronic • After electronically submitting the implementing the Transparency Act, copies of the application may not be application, the applicant will receive including the specific requirements for submitted as attachments to email an automatic acknowledgment from DUNS and SAM, can be found on the messages addressed to IHS employees or Grants.gov that contains a Grants.gov IHS Grants Management, Grants Policy offices. tracking number. The DGM will Web site: http://www.ihs.gov/dgm/ If the applicant receives a waiver to download the application from policytopics/. submit paper application documents, Grants.gov and provide necessary copies they must follow the rules and timelines to the appropriate agency officials. V. Application Review Information that are noted below. The applicant Neither the DGM nor the ODSCT will must seek assistance at least ten days notify the applicant that the application The instructions for preparing the prior to the Application Deadline Date has been received. application narrative also constitute the listed in the Key Dates section on page • Email applications will not be evaluation criteria for reviewing and one of this announcement. accepted under this announcement. scoring the application. Weights Applicants that do not adhere to the assigned to each section are noted in Dun and Bradstreet (D&B) Data timelines for System for Award parentheses. The ten page narrative for Universal Numbering System (DUNS) Management (SAM) and/or http:// each component should include only www.Grants.gov registration or that fail All IHS applicants and grantee the first year of activities; information to request timely assistance with organizations are required to obtain a for multi-year projects should be technical issues will not be considered DUNS number and maintain an active included as an appendix. See ‘‘Multi- for a waiver to submit a paper registration in the SAM database. The year Project Requirements’’ at the end of application. DUNS number is a unique 9-digit this section for more information. The Please be aware of the following: identification number provided by D&B narrative section should be written in a • Please search for the application which uniquely identifies each entity. manner that is clear to outside reviewers package in http://www.Grants.gov by The DUNS number is site specific; unfamiliar with prior related activities entering the CFDA number or the therefore, each distinct performance site of the applicant. It should be well Funding Opportunity Number. Both may be assigned a DUNS number. numbers are located in the header of Obtaining a DUNS number is easy, and organized, succinct, and contain all this announcement. there is no charge. To obtain a DUNS information necessary for reviewers to • If you experience technical number, please access it through http:// understand the project fully. Points will challenges while submitting your fedgov.dnb.com/webform, or to expedite be assigned to each evaluation criteria application electronically, please the process, call (866) 705–5711. adding up to a total of 100 points. A contact Grants.gov Support directly at: All HHS recipients are required by the minimum score of 60 points is required [email protected] or (800) 518–4726. Federal Funding Accountability and for funding. Points are assigned as Customer Support is available to Transparency Act of 2006, as amended follows: address questions 24 hours a day, 7 days (‘‘Transparency Act’’), to report a week (except on Federal holidays). information on sub-awards.
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1. Criteria (2) Submit a work plan in the c. How ongoing monitoring will be appendix which includes the following used to improve the project. A. Introduction and Need for Assistance information: d. Any products, such as manuals or (15 Points) a. Provide the action steps on a policies, that might be developed and (1) Describe the individual entity’s timeline for accomplishing the proposed how they might lend themselves to and/or partnering entities’ (as project objective(s). replication by others. applicable) current health, education b. Identify who will perform the (3) Describe how the project will and technical assistance operations as action steps. document what is learned throughout related to the broad spectrum of health c. Identify who will supervise the the project period. Describe any needs of the AI/AN community. Include action steps taken. evaluation efforts that are planned to what programs and services are d. Identify what tangible products occur after the grant periods ends. currently provided (i.e., Federally will be produced during and at the end (4) Describe the ultimate benefit for funded, State funded, etc.), any of the proposed project objective(s). the AI/ANs that will be derived from memorandums of agreement with other e. Identify who will accept and/or this project. approve work products during the national, area or local Indian health D. Organizational Capabilities, Key duration of the proposed project and at board organizations, HHS agencies that Personnel and Qualifications (15 Points) rely on the applicant as the primary the end of the proposed project. gateway organization that is capable of f. Include any training that will take (1) Describe the organizational providing the dissemination of health place during the proposed project and structure of the organization. information, information regarding who will be attending the training. (2) Describe the ability of the technologies currently used (i.e., g. Include evaluation activities organization to manage the proposed hardware, software, services, etc.), and planned. project. Include information regarding identify the source(s) of technical (3) If consultants or contractors will similarly sized projects in scope and support for those technologies (i.e., in- be used during the proposed project, financial assistance as well as other house staff, contractors, vendors, etc.). please include the following cooperative agreements/grants and Include information regarding how long information in their scope of work (or projects successfully completed. the applicant has been operating and its note if consultants/contractors will not (3) Describe what equipment (i.e., fax length of association/partnerships with be used): machine, phone, computer, etc.) and area health boards, etc. [historical a. Educational requirements. facility space (i.e., office space) will be collaboration]. b. Desired qualifications and work available for use during the proposed experience. project. (2) Describe the organization’s current c. Expected work products to be (4) List key personnel who will work technical assistance ability. Include delivered on a timeline. on the project. Include title used in the what programs and services are d. If a potential consultant/contractor work plan. In the appendix, include currently provided, programs and has already been identified, please position descriptions and resumes for services projected to be provided, etc. include a resume in the Appendix. all key personnel. Position descriptions (3) Describe the population to be should clearly describe each position served by the proposed project. Include C. Program Evaluation (15 Points) and duties, indicating desired a description of the number of Tribes Each proposed objective requires an qualifications and experience and Tribal members who currently evaluation component to assess its requirements related to the proposed benefit from the technical assistance progression and ensure its completion. project. Resumes must indicate that the provided by the applicant. Also, include the evaluation activities in proposed staff member is qualified to (4) State how previous cooperative the work plan. Describe the proposed carry out the proposed project activities. agreement funds facilitated education, plan to evaluate both outcomes and If a position is to be filled, indicate that training and technical assistance nation- process. Outcome evaluation relates to information on the proposed position wide for AI/ANs and relate the the results identified in the objectives, description. progression of health care information and process evaluation relates to the delivery and development relative to the work plan and activities of the project. E. Categorical Budget and Budget current proposed project. (Copies of (1) For outcome evaluation, describe: Justification (10 Points) reports will not be accepted.) a. What the criteria will be for (1) Provide a categorical budget for (5) Describe collaborative and determining success of each objective. 12-month budget period requested. supportive efforts with national, area b. What data will be collected to (2) If indirect costs are claimed, and local Indian health boards. determine whether the objective was indicate and apply the current (6) Describe how the project relates to met. negotiated rate to the budget. Include a the purpose of the cooperative c. At what intervals will data be copy of the rate agreement in the agreement by addressing the following: collected. appendix. Identify how the proposed project will d. Who will collect the data and their (3) Provide a narrative justification address the changes and requirements of qualifications. explaining why each line item is the Acts. e. How the data will be analyzed. necessary/relevant to the proposed f. How the results will be used. project. Include sufficient cost and other B. Project Objective(s), Work Plan and (2) For process evaluation, describe: details to facilitate the determination of Approach (45 Points) a. How the project will be monitored cost allowability (i.e., equipment and assessed for potential problems and (1) Proposed project objectives must specifications, etc.). needed quality improvements. be: b. Who will be responsible for Multi-Year Project Requirements a. Measurable and (if applicable) monitoring and managing project Projects requiring a second and/or quantifiable. improvements based on results of third year must include a brief project b. Results oriented. ongoing process improvements and narrative and budget (one additional c. Time-limited. their qualifications. page per year) addressing the
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developmental plans for each additional that is approved for funding under this • Uniform Administrative year of the project. announcement will need to request or Requirements for HHS Awards, ‘‘Cost Additional documents can be have a user account in GrantSolutions Principles,’’ located at 45 CFR part 75, uploaded as Appendix Items in in order to retrieve their NoA. The NoA subpart E. Grants.gov is the authorizing document for which E. Audit Requirements: • Work plan, logic model and/or time funds are dispersed to the approved • Uniform Administrative line for proposed objectives. entities and reflects the amount of Requirements for HHS Awards, ‘‘Audit • Position descriptions for key staff. Federal funds awarded, the purpose of Requirements,’’ located at 45 CFR part • Resumes of key staff that reflect the grant, the terms and conditions of 75, subpart F. current duties. the award, the effective date of the 3. Indirect Costs (IDC) • Consultant or contractor proposed award, and the budget/project period. scope of work and letter of commitment This section applies to all grant Disapproved Applicants (if applicable). recipients that request reimbursement of • Current Indirect Cost Agreement. Applicants who received a score less indirect costs (IDC) in their grant • Organizational chart. than the recommended funding level for application. In accordance with HHS • Map of area identifying project approval, 60 points or more, and were Grants Policy Statement, Part II–27, IHS location(s). deemed to be disapproved by the ORC, requires applicants to obtain a current • Additional documents to support will receive an Executive Summary IDC rate agreement prior to award. The narrative (i.e., data tables, key news Statement from the ODSCT within 30 rate agreement must be prepared in accordance with the applicable cost articles, etc.). days of the conclusion of the ORC principles and guidance as provided by outlining the strengths and weaknesses 2. Review and Selection the cognizant agency or office. A current of their application submitted. The rate covers the applicable grant Each application will be prescreened ODSCT will also provide additional activities under the current award’s by the DGM staff for eligibility and contact information as needed to budget period. If the current rate is not completeness as outlined in the funding address questions and concerns as well on file with the DGM at the time of announcement. Applications that meet as provide technical assistance if award, the IDC portion of the budget the eligibility criteria shall be reviewed desired. for merit by the ORC based on will be restricted. The restrictions evaluation criteria in this funding Approved But Unfunded Applicants remain in place until the current rate is announcement. The ORC could be Approved but unfunded applicants provided to the DGM. Generally, IDC rates for IHS grantees composed of both Tribal and Federal that met the minimum scoring range are negotiated with the Division of Cost reviewers appointed by the IHS program and were deemed by the ORC to be Allocation (DCA) https://rates.psc.gov/ to review and make recommendations ‘‘Approved,’’ but were not funded due and the Department of Interior (Interior on these applications. The technical to lack of funding, will have their Business Center) https://www.doi.gov/ review process ensures selection of applications held by DGM for a period ibc/services/finance/indirect-Cost- quality projects in a national of one year. If additional funding Services/indian-tribes. For questions competition for limited funding. becomes available during the course of regarding the indirect cost policy, please Incomplete applications and FY 2016, the approved but unfunded call the Grants Management Specialist applications that are non-responsive to application may be re-considered by the listed under ‘‘Agency Contacts’’ or the the eligibility criteria will not be awarding program office for possible main DGM office at (301) 443–5204. referred to the ORC. The applicant will funding. The applicant will also receive be notified via email of this decision by an Executive Summary Statement from 4. Reporting Requirements the Grants Management Officer of the the IHS program office within 30 days The grantee must submit required DGM. Applicants will be notified by of the conclusion of the ORC. reports consistent with the applicable DGM, via email, to outline minor Note: Any correspondence other than deadlines. Failure to submit required missing components (i.e., budget the official NoA signed by an IHS grants reports within the time allowed may narratives, audit documentation, key management official announcing to the result in suspension or termination of contact form) needed for an otherwise project director that an award has been an active grant, withholding of complete application. All missing made to their organization is not an additional awards for the project, or documents must be sent to DGM on or authorization to implement their other enforcement actions such as before the due date listed in the email program on behalf of IHS. withholding of payments or converting of notification of missing documents 2. Administrative Requirements to the reimbursement method of required. payment. Continued failure to submit To obtain a minimum score for Cooperative agreements are required reports may result in one or funding by the ORC, applicants must administered in accordance with the both of the following: (1) The address all program requirements and following regulations, policies, and imposition of special award provisions; provide all required documentation. OMB cost principles: and (2) the non-funding or non-award of VI. Award Administration Information A. The criteria as outlined in this other eligible projects or activities. This program announcement. requirement applies whether the 1. Award Notices B. Administrative Regulations for delinquency is attributable to the failure The Notice of Award (NoA) is a Grants: of the grantee organization or the legally binding document signed by the • Uniform Administrative individual responsible for preparation grants management officer and serves as Requirements for HHS Awards located of the reports. Per DGM policy, all the official notification of the grant at 45 CFR part 75. reports are required to be submitted award. The NoA will be initiated by the C. Grants Policy: electronically by attaching them as a DGM in our grant system, • HHS Grants Policy Statement, ‘‘Grant Note’’ in GrantSolutions. GrantSolutions (https:// Revised 01/07. Personnel responsible for submitting www.grantsolutions.gov). Each entity D. Cost Principles: reports will be required to obtain a login
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and password for GrantSolutions. Please period) and where: (1) The project minorityhealth.hhs.gov/omh/ see the Agency Contacts list in section period start date was October 1, 2010 or browse.aspx?lvl=2&lvlid=53. VII for the systems contact information. after and (2) the primary awardee will Pursuant to 45 CFR 80.3(d), an The reporting requirements for this have a $25,000 sub-award obligation individual shall not be deemed program are noted below. dollar threshold during any specific subjected to discrimination by reason of his/her exclusion from benefits limited A. Progress Reports reporting period will be required to address the FSRS reporting. For the full by federal law to individuals eligible for Program progress reports are required IHS award term implementing this benefits and services from the Indian semi-annually within 30 days after the requirement and additional award Health Service. budget period ends. These reports must applicability information, visit the DGM Recipients will be required to sign the include a brief comparison of actual Grants Policy Web site at: http:// HHS–690 Assurance of Compliance accomplishments to the goals www.ihs.gov/dgm/policytopics/. form which can be obtained from the established for the period, or, if following Web site: http://www.hhs.gov/ applicable, provide sound justification D. Compliance With Executive Order sites/default/files/forms/hhs-690.pdf, for the lack of progress and other 13166 Implementation of Services and send it directly to the: U.S. pertinent information as required. A Accessibility Provisions for All Grant Department of Health and Human final report must be submitted within 90 Application Packages and Funding Services, Office of Civil Rights, 200 days of expiration of the budget/project Opportunity Announcements Independence Ave. SW., Washington, period. Recipients of federal financial DC 20201. B. Financial Reports assistance (FFA) from HHS must E. Federal Awardee Performance and administer their programs in Federal Financial Report FFR (SF– Integrity Information System (FAPIIS) compliance with federal civil rights law. 425), Cash Transaction Reports are due The IHS is required to review and This means that recipients of HHS funds 30 days after the close of every calendar consider any information about the must ensure equal access to their quarter to the Payment Management applicant that is in the Federal Awardee programs without regard to a person’s Services, HHS at: http:// Performance and Integrity Information race, color, national origin, disability, www.dpm.psc.gov. It is recommended System (FAPIIS) before making any age and, in some circumstances, sex and that the applicant also send a copy of award in excess of the simplified religion. This includes ensuring your the FFR (SF–425) report to the Grants acquisition threshold (currently programs are accessible to persons with Management Specialist. Failure to $150,000) over the period of limited English proficiency. HHS submit timely reports may cause a performance. An applicant may review provides guidance to recipients of FFA disruption in timely payments to the and comment on any information about on meeting their legal obligation to take organization. itself that a federal awarding agency reasonable steps to provide meaningful Grantees are responsible and previously entered. IHS will consider access to their programs by persons with accountable for accurate information any comments by the applicant, in limited English proficiency. Please see being reported on all required reports: addition to other information in FAPIIS http://www.hhs.gov/civil-rights/for- the Progress Reports and Federal in making a judgment about the individuals/special-topics/limited- Financial Report. applicant’s integrity, business ethics, english-proficiency/guidance-federal- and record of performance under federal C. Federal Sub-Award Reporting System financial-assistance-recipients-title-VI/. awards when completing the review of (FSRS) The HHS Office for Civil Rights (OCR) risk posed by applicants as described in This award may be subject to the also provides guidance on complying 45 CFR 75.205. Transparency Act sub-award and with civil rights laws enforced by HHS. As required by 45 CFR part 75 executive compensation reporting Please see http://www.hhs.gov/civil- Appendix XII of the Uniform Guidance, requirements of 2 CFR part 170. rights/for-individuals/section-1557/ non-federal entities (NFEs) are required The Transparency Act requires the index.html; and http://www.hhs.gov/ to disclose in FAPIIS any information OMB to establish a single searchable civil-rights/index.html. Recipients of about criminal, civil, and administrative database, accessible to the public, with FFA also have specific legal obligations proceedings, and/or affirm that there is information on financial assistance for serving qualified individuals with no new information to provide. This awards made by Federal agencies. The disabilities. Please see http:// applies to NFEs that receive federal Transparency Act also includes a www.hhs.gov/civil-rights/for- awards (currently active grants, requirement for recipients of Federal individuals/disability/index.html. cooperative agreements, and grants to report information about first- Please contact the HHS OCR for more procurement contracts) greater than tier sub-awards and executive information about obligations and $10,000,000 for any period of time compensation under Federal assistance prohibitions under federal civil rights during the period of performance of an awards. laws at http://www.hhs.gov/civil-rights/ award/project. IHS has implemented a Term of for-individuals/disability/index.html or Award into all IHS Standard Terms and call 1–800–368–1019 or TDD 1–800– Mandatory Disclosure Requirements Conditions, NoAs and funding 537–7697. Also note it is an HHS As required by 2 CFR part 200 of the announcements regarding the FSRS Departmental goal to ensure access to Uniform Guidance, and the HHS reporting requirement. This IHS Term of quality, culturally competent care, implementing regulations at 45 CFR part Award is applicable to all IHS grant and including long-term services and 75, effective January 1, 2016, the IHS cooperative agreements issued on or supports, for vulnerable populations. must require a non-federal entity or an after October 1, 2010, with a $25,000 For further guidance on providing applicant for a federal award to disclose, sub-award obligation dollar threshold culturally and linguistically appropriate in a timely manner, in writing to the met for any specific reporting period. services, recipients should review the IHS or pass-through entity all violations Additionally, all new (discretionary) National Standards for Culturally and of federal criminal law involving fraud, IHS awards (where the project period is Linguistically Appropriate Services in bribery, or gratutity violations made up of more than one budget Health and Health Care at http:// potentially affecting the federal award.
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Submission is required for all smoke-free workplace and promote the to Ms. Celeste Davis by one of the applicants and recipients, in writing, to non-use of all tobacco products. In following methods: the IHS and to the HHS Office of addition, Pub. L. 103–227, the Pro- • Mail: Ms. Celeste Davis, Director, Inspector General all information Children Act of 1994, prohibits smoking Division of Environmental Health related to violations of Federal criminal in certain facilities (or in some cases, Services/Emergency Management law involving fraud, bribery, or gratuity any portion of the facility) in which Coordinator, U.S. DHHS/Indian Health violations potentially affecting the regular or routine education, library, Service, 1414 NW Northrup St., 800, Federal award. 45 CFR 75.113. day care, health care, or early childhood Portland, OR 97209. Disclosures must be sent in writing to: development services are provided to • Phone: 503–414–7774. U.S. Department of Health and Human children. This is consistent with the • Email: [email protected]. Services, Indian Health Service, HHS mission to protect and advance the • Fax: 503–414–7776. Division of Grants Management, ATTN: physical and mental health of the SUPPLEMENTARY INFORMATION: The Robert Tarwater, Director, 5600 Fishers American people. Division is submitting the proposed Lane, Mailstop: 09E70, Rockville, Dated: July 18, 2016. information collection to OMB for Maryland 20852. (Include ‘‘Mandatory Elizabeth A. Fowler, review, as required by the Paperwork Grant Disclosures’’ in subject line). Ofc: Deputy Director for Management Operations, Reduction Act of 1995. This Notice is (301) 443–5204. Fax: (301) 594–0899. Indian Health Service. soliciting comments from members of Email: [email protected]. the public and affected agencies AND [FR Doc. 2016–17500 Filed 7–22–16; 8:45 am] BILLING CODE 4165–16–P concerning the proposed collection of U.S. Department of Health and information to: (1) Evaluate whether the Human Services, Office of Inspector proposed collection of information is General, ATTN: Mandatory Grant DEPARTMENT OF HEALTH AND necessary for the proper performance of Disclosures, Intake Coordinator, 330 HUMAN SERVICES the functions of the agency, including Independence Avenue SW., Cohen whether the information will have Building, Room 5527, Washington, DC Indian Health Service practical utility: (2) Evaluate the 20201, URL: http://oig.hhs.gov/fraud/ accuracy of the agency’s estimate of the reportfraud/index.asp. (Include Request for Public Comment: 60 Day burden of the proposed collection of ‘‘Mandatory Grant Disclosures’’ in Proposed Information Collection: information; (3) Enhance the quality, subject line). Fax: (202) 205–0604 Environmental Health Assessment of utility, and clarity of the information to (Include ‘‘Mandatory Grant Disclosures’’ Tribal Child Care Centers in the Pacific be collected; and (4) Minimize the in subject line) or Email: Northwest burden of the collection of information MandatoryGranteeDisclosures@ AGENCY: Indian Health Service, HHS. on those who are to respond; including oig.hhs.gov. through the use of appropriate Failure to make required disclosures ACTION: Notice automated collection techniques of can result in any of the remedies SUMMARY: In compliance with the other forms of information technology, described in 45 CFR 75.371 Remedies Paperwork Reduction Act of 1995 which e.g., permitting electronic submission of for noncompliance, including requires 60 days advance opportunity responses. suspension or debarment (See 2 CFR for public comment on proposed Title of Proposal: Environmental parts 180 & 376 and 31 U.S.C. 3321). information collection projects, the Health Assessment of Tribal Child Care VII. Agency Contacts Indian Health Service (IHS) is Centers in the Pacific Northwest. 1. Questions on the programmatic publishing for comment a summary of OMB Control Number: To be assigned. issues may be directed to: Ms. Michelle proposed information collection to be Need for the Information and EagleHawk, Deputy Director, ODSCT, submitted to the Office of Management Proposed Use: The Portland Area IHS 5600 Fishers Lane, Mail Stop: O8E17, and Budget (OMB) for review. and EPA seek to conduct an Proposed Collection: Proposed Rockville, Maryland 20857, Telephone: environmental health assessment of Collection: Title: 0917–NEW, ‘‘Indian (301) 443–1104, E-Mail: tribal child care centers in Portland Health Service Environmental Health [email protected]. Area Indian Country (in the states of 2. Questions on grants management Assessment of Tribal Child Care Centers Washington, Oregon, and Idaho). There and fiscal matters may be directed to: in the Pacific Northwest.’’ Type of is a significant data gap regarding the Ms. Patience Musikikongo, Grants Information Collection Request: Three levels of lead, allergens, pesticides, and Management Specialist, DGM, 5600 year approval of this new information polychlorinated biphenyls (PCBs) in Fishers Lane, Mail Stop: 09E70, collection, 0917–NEW, ‘‘Indian Health child care centers within Portland Area Rockville, MD 20857, Telephone: (301) Service Environmental Health Indian country. This research will help 443–2059, Fax: (301) 594–0899, E-Mail: Assessment of Tribal Child Care Centers us understand the potential for exposure [email protected]. in the Pacific Northwest.’’ to these chemicals among children who 3. Questions on systems matters may Form(s): Child Care Center Director attend. For example, Eliminating be directed to: Mr. Paul Gettys, Grant Questionnaire and Pesticide Applicator Childhood Lead Poisoning: A Federal Systems Coordinator, 5600 Fishers Questionnaire. Strategy Targeting Lead Paint Hazards, Lane, Mail Stop: 09E70, Rockville, MD DATES: Comment Due Date: September produced by the President’s Task Force 20857, Phone: (301) 443–2114; or the 23, 2016. Your comments regarding this on Environmental Health Risks and DGM main line (301) 443–5204, Fax: information collection are best assured Safety Risks to Children discusses the (301) 594–0899, E-Mail: Paul.Gettys@ of having full effect if received within need for more data on lead levels in ihs.gov. 60 days of the date of this publication. licensed child care facilities. Also, data ADDRESSES: Send your written is limited on the interrelationships VIII. Other Information comments, requests for more between exposure factors, building The Public Health Service strongly information on the collection, or factors, and community factors and their encourages all cooperative agreement requests to obtain a copy of the data combined impact on children’s and contract recipients to provide a collection instrument and instructions exposures from chemical agents in child
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care environments. Non-chemical this project is to provide valuable data methods and practices for preventing stressors, such as noise, number of about the levels of lead, allergens, and controlling indoor environmental windows in the child care center, tree pesticides, and PCBs in child care hazards. This project may be replicated cover, and shade cover in play area, will facilities located in Portland Area in other IHS areas. be included in data collection. Indian Country. This project will help Agency Form Numbers: None. Community factors, such as mapping prioritize services and funding based on Members of Affected Public: the locations of the child care facilities, known needs and risks in order to help Operators of tribal child care facilities roads, and agricultural operations, will facilities obtain needed services. This and pesticide applicators who work in be included in data collection in order data may help tribes secure funding child care facilities. to evaluate the relationship between from the federal Head Start program and indoor air quality and the outdoor other funding sources for repairs, Status of the Proposed Information environment. rehabilitations or other corrective Collection: New request. IHS and EPA will also incorporate action. This study may also provide The table below provides: Types of follow-up outreach and education with federal Head Start and Tribal Programs data collection instruments, Estimated facilities to explain results and suggest with data to improve standards and number of respondents, Number of corrective actions to remediate or initiate policy changes, if necessary. IHS responses per respondent, Annual reduce exposures from lead, allergens, will also provide indoor air quality kits number of responses, Average burden pesticides, and PCBs that are detected in to the facilities and environmental hour per response, and Total annual the facilities. The principal purpose of health training to center staff to provide burden hours.
Number Average Data collection instrument Type of respondent Number of responses per burden per Estimated respondents response burden hours respondent (hours)
Child Care Center Director Questionnaire ...... Child Care Center Director 45 1 1.5 67.5 Pesticide Applicator Questionnaire ...... Pesticide Applicator ...... 30 1 0.5 15
Total ...... 75 ...... 82.5
There are no direct costs to and personal information concerning DEPARTMENT OF HEALTH AND respondents other than their time to individuals associated with the grant HUMAN SERVICES voluntarily complete the forms and applications, the disclosure of which submit them for consideration. would constitute a clearly unwarranted National Institutes of Health Comment Due Date: Comments invasion of personal privacy. regarding this information collection are Eunice Kennedy Shriver National best assured of having full effect if Name of Committee: Eunice Kennedy Institute of Child Health and Human received within 60 days of the date of Shriver, National Institute of Child Health Development (NICHD); Notice of this publication. and Human Development Special Emphasis Closed Meeting Panel; Genetic Quality Control in the Dated: July 13, 2016. Mammalian Germline. Pursuant to section 10(d) of the Elizabeth A. Fowler, Date: September 6, 2016. Federal Advisory Committee Act, as Deputy Director for Management Operations, Time: 12:00 p.m. to 3:00 p.m. amended (5 U.S.C. App.), notice is Indian Health Service. Agenda: To review and evaluate grant hereby given of the following meeting. [FR Doc. 2016–17494 Filed 7–22–16; 8:45 am] applications. The meeting will be closed to the BILLING CODE 4165–16–P Place: National Institutes of Health, 6710B public in accordance with the Rockledge Drive, Room 2137C, Bethesda, MD provisions set forth in section 552b(c)(4) 20892 (Telephone Conference Call). and 552b(c)(6), Title 5 U.S.C., as DEPARTMENT OF HEALTH AND Contact Person: Dennis E. Leszczynski, amended. The grant applications and HUMAN SERVICES Ph.D., Scientific Review Officer, Division of the discussions could disclose Scientific Review, Eunice Kennedy Shriver confidential trade secrets or commercial National Institutes of Health National Institute of Child Health and property such as patentable material, Human Development, NIH, 6710B Rockledge Eunice Kennedy Shriver National and personal information concerning Drive, Room 2137C, Bethesda, MD 20892, Institute of Child Health & Human individuals associated with the grant (301) 435–6884, [email protected]. Development; Notice of Closed applications, the disclosure of which Meeting (Catalogue of Federal Domestic Assistance would constitute a clearly unwarranted Program Nos. 93.864, Population Research; invasion of personal privacy. Pursuant to section 10(d) of the 93.865, Research for Mothers and Children; Name of Committee: National Advisory Federal Advisory Committee Act, as 93.929, Center for Medical Rehabilitation Child Health and Human Development amended (5 U.S.C. App.), notice is Research; 93.209, Contraception and Council. hereby given of the following meeting. Infertility Loan Repayment Program, National Date: August 22, 2016. The meeting will be closed to the Institutes of Health, HHS) Time: 2:00 p.m. to Adjournment. Agenda: To review and evaluate grant public in accordance with the Dated: July 19, 2016. provisions set forth in sections applications. Michelle Trout, Place: National Institutes of Health, 6710B 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Rockledge Drive, Bethesda, MD 20892 as amended. The contract proposals and Program Analyst, Office of Federal Advisory Committee Policy. (Telephone Conference Call). the discussions could disclose Contact Person: Della Hann, Ph.D., [FR Doc. 2016–17422 Filed 7–22–16; 8:45 am] confidential trade secrets or commercial Director, Division of Extramural Research, property such as patentable material, BILLING CODE 4140–01–P Eunice Kennedy Shriver National Institute of
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Child Health and Human Development, NIH, cell lines, and orthotopic models based Intellectual Property: Research use— 6710B Rockledge Drive, Room 2314, on Rb, p53 and/or Brca 1/2 inactivation no patent protection will be sought. Bethesda, MD 20892, (301) 496–8535, useful for biomarker discovery and Publications: [email protected]. preclinical testing. 1. Szabova L., Yin C., Bupp S., et al. (Catalogue of Federal Domestic Assistance Description of Technology: The high Perturbation of Rb, p53 and Brca1 Program Nos. 93.864, Population Research; mortality rate from ovarian cancers can or Brca2 cooperate in inducing 93.865, Research for Mothers and Children; be attributed to late-stage diagnosis and metastatic serous epithelial ovarian 93.929, Center for Medical Rehabilitation Research; 93.209, Contraception and lack of effective treatment. Despite cancer. Cancer research. Infertility Loan Repayment Program, National enormous effort to develop better 2012;72(16):4141–4153. Institutes of Health, HHS) targeted therapies, platinum-based 2. Szabova L., Bupp S., Kamal M., et al. Dated: July 19, 2016. chemotherapy still remains the standard Pathway-Specific Engineered Mouse Allograft Models Michelle Trout, of care for ovarian cancer patients, and resistance occurs at a high rate. One of Functionally Recapitulate Human Program Analyst, Office of Federal Advisory Serous Epithelial Ovarian Cancer. Committee Policy. the rate limiting factors for translation of new drug discoveries into clinical Katoh M., ed. PLoS ONE. [FR Doc. 2016–17423 Filed 7–22–16; 8:45 am] treatments has been the lack of suitable 2014;9(4):e95649. BILLING CODE 4140–01–P preclinical cancer models with high Collaboration Opportunity: predictive value. Researchers at the NCI seek licensing NCI CAPR has developed Tri-allelic and/or co-development research DEPARTMENT OF HEALTH AND ∂ K18–T121 tg/ /Brca1 fl/fl /p53 fl/fl SEOC HUMAN SERVICES collaborations for the commercialization GEM Model, GEM-derived SEOC of agents for the treatment of SEOC. National Institutes of Health orthotopic mouse model, and biological Contact Information: Requests for materials derived therefrom, with copies of the patent application or Government-Owned Inventions; several key histopathologic, inquiries about licensing, research Availability for Licensing immunophenotypical, and genetic collaborations, and co-development features of human SEOC. SEOC GEMs opportunities should be sent to John D. AGENCY: National Institutes of Health, were utilized to create orthotopic Hewes, Ph.D., email: john.hewes@ HHS. immunocompetent transplant models, nih.gov. ACTION: Notice. and to generate synchronized cohorts of Dated: July 11, 2016. mice suitable for preclinical studies. John D. Hewes, SUMMARY: The invention listed below is NCI CAPR conducted studies that owned by an agency of the U.S. determine these models are tractable for Technology Transfer Specialist, Technology Transfer Center, National Cancer Institute. Government and is available for use in routine efficacy studies and licensing and/or co-development in the demonstrate the utility of these models [FR Doc. 2016–17419 Filed 7–22–16; 8:45 am] U.S. in accordance with 35 U.S.C. 209 in evaluating the potential efficacy of BILLING CODE 4140–01–P and 37 CFR part 404 to achieve novel therapeutics for ovarian cancer. expeditious commercialization of Potential Commercial Applications: results of federally-funded research and • DEPARTMENT OF HEALTH AND These models serve as a foundation HUMAN SERVICES development. Foreign patent for preclinical research and evaluation applications are filed on selected of efficacy of novel therapeutics for National Institutes of Health inventions to extend market coverage ovarian cancer. for companies and may also be available • The GEM models described here National Heart, Lung, and Blood for licensing and/or co-development. can be used to develop cell lines and Institute; Notice of Closed Meeting ADDRESSES: Invention Development and allograft models for evaluating drug Marketing Unit, Technology Transfer potency relative to Brca1 mutation Pursuant to section 10(d) of the Center, National Cancer Institute, 9609 status. Federal Advisory Committee Act, as Medical Center Drive, Mail Stop 9702, • These mouse models provide the amended (5 U.S.C. App.), notice is Rockville, MD, 20850–9702. opportunity for evaluation of effective hereby given of the following meeting. FOR FURTHER INFORMATION CONTACT: therapeutics, including prediction of The meeting will be closed to the Information on licensing and co- differential responses in Brca1-wild public in accordance with the development research collaborations, type and Brca1–deficient tumors and provisions set forth in sections and copies of the U.S. patent development of relevant biomarkers. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., applications listed below may be Value Proposition: as amended. The grant applications and obtained by contacting: Attn. Invention • Novel resource for evaluating the discussions could disclose Development and Marketing Unit, disease etiology and biomarkers, confidential trade secrets or commercial Technology Transfer Center, National therapeutic evaluation, and improved property such as patentable material, Cancer Institute, 9609 Medical Center imaging strategies in epithelial ovarian and personal information concerning Drive, Mail Stop 9702, Rockville, MD cancer individuals associated with the grant 20850–9702, Tel. 240–276–5515 or • Similarity to human ovarian cancer applications, the disclosure of which email [email protected]. A based on transcriptional profiling would constitute a clearly unwarranted signed Confidential Disclosure • Suitable preclinical cancer models invasion of personal privacy. Agreement may be required to receive with high predictive value. Name of Committee: National Heart, Lung, copies of the patent applications. Development Stage: Pre-clinical (in and Blood Institute Special Emphasis Panel Pediatric Heart Network Clinical Research SUPPLEMENTARY INFORMATION: vivo validation). Centers (UG1). Technology description follows. Inventor(s): Simone Difilippantonio, Date: August 17–18, 2016 Title of invention: Novel metastatic Terry Van Dyke, Zoe Weaver Ohler, Time: 8:30 a.m. to 5:00 p.m. serous epithelial ovarian cancer (SEOC) Ludmila Szabova, Sujata Bupp, Yurong Agenda: To review and evaluate grant genetically engineered mouse models, Song, Chaoying Yin. applications.
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Place: The Dupont Circle Hotel, 1500 New Extramural Research Activities, National activities associated with its Mental Hampshire Avenue NW., Washington, DC Heart, Lung, and Blood Institute, 6701 Health First Aid (MHFA) program. 20036. Rockledge Drive, Room 7214, Bethesda, MD This information is needed to Contact Person: Susan Wohler Sunnarborg, 20892–7924, 301–435–0270, prengerv@ Ph.D., Scientific Review Officer, Office of nhlbi.nih.gov. evaluate implementation of MHFA and Youth Mental Health First Aid in three Scientific Review/DERA, National, Heart, Any interested person may file written Lung, and Blood Institute 6701 Rockledge comments with the committee by forwarding distinct grant programs: Project Drive, Room 7182, Bethesda, MD 20892 the statement to the Contact Person listed on Advancing Wellness and Resilience in [email protected] this notice. The statement should include the Education (AWARE) State Education (Catalogue of Federal Domestic Assistance name, address, telephone number and when Agency (SEA) Cooperative Agreements, Program Nos. 93.233, National Center for applicable, the business or professional which provide funding to support Sleep Disorders Research; 93.837, Heart and affiliation of the interested person. MHFA and YMHFA training to state Vascular Diseases Research; 93.838, Lung Information is also available on the education agencies; Project AWARE Diseases Research; 93.839, Blood Diseases Institute’s/Center’s home page: and Resources Research, National Institutes Local Education Agency (LEA) Grants, www.nhlbi.nih.gov/meetings/nhlbac/ which provide funding to school of Health, HHS) index.htm, where an agenda and any districts; and Project AWARE Dated: July 19, 2016. additional information for the meeting will Community (C), a new funding Michelle Trout, be posted when available. (Catalogue of Federal Domestic Assistance opportunity in fiscal year 2015 that is Program Analyst, Office of Federal Advisory intended to support MHFA and YMHFA Committee Policy. Program Nos. 93.233, National Center for Sleep Disorders Research; 93.837, Heart and training through a wide range of [FR Doc. 2016–17421 Filed 7–22–16; 8:45 am] Vascular Diseases Research; 93.838, Lung community organizations. BILLING CODE 4140–01–P Diseases Research; 93.839, Blood Diseases The MHFA/YMHFA evaluation will and Resources Research, National Institutes address both overarching and program- of Health, HHS) DEPARTMENT OF HEALTH AND specific questions related to the HUMAN SERVICES Dated: July 19, 2016. implementation and effectiveness of Michelle Trout, widespread dissemination of mental National Institutes of Health Program Analyst, Office of Federal Advisory health literacy programs through these Committee Policy. three distinct funding mechanisms and National Heart, Lung, and Blood [FR Doc. 2016–17420 Filed 7–22–16; 8:45 am] increase SAMHSA’s understanding of Institute; Notice of Meeting BILLING CODE 4140–01–P training, referral benefits, and issues in varied milieu (e.g., implementation Pursuant to section 10(d) of the climate, leadership). These evaluation Federal Advisory Committee Act, as DEPARTMENT OF HEALTH AND questions are essential to address amended (5 U.S.C. App.), notice is HUMAN SERVICES because, although MHFA/YMHFA has a hereby given of a meeting of the track record and well-articulated theory National Heart, Lung, and Blood Substance Abuse and Mental Health of action, it is vital for SAMHSA to be Advisory Council. Services Administration able to identify factors that are expected The meeting will be closed to the to increase or decrease the extent public in accordance with the Agency Information Collection MHFA/YMHFA is disseminated and provisions set forth in sections Activities: Submission for OMB implemented with quality. 552b(c)(4) and 552b(c)(6), title 5 U.S.C., Review; Comment Request This data collection is covered under as amended. The grant applications and the requirements of Public Law 103–62, the discussions could disclose Periodically, the Substance Abuse and the Government Performance and confidential trade secrets or commercial Mental Health Services Administration property such as patentable material, (SAMHSA) will publish a summary of Results Act (GPRA) of 1993, Title 38, and personal information concerning information collection requests under section 527, Evaluation and Data individuals associated with the grant OMB review, in compliance with the Collection, as well as 38 CFR 1.15, applications, the disclosure of which Paperwork Reduction Act (44 U.S.C. Standards for Program Evaluation. would constitute a clearly unwarranted Chapter 35). To request a copy of these SAMHSA is requesting clearance for invasion of personal privacy. documents, call the SAMHSA Reports four data collection instruments: Clearance Officer on (240) 276–1243. (1) MHFA/YMHFA Pre-Training Name of Committee: National Heart, Lung, Survey and Blood Advisory Council. Project: Mental Health First Aid Date: August 30, 2016. (2) MHFA/YMHFA Post-Training Time: 1:00 p.m. to 3:00 p.m. Evaluation-NEW Survey Agenda: To review and evaluate grant The Substance Abuse and Mental (3) MHFA/YMHFA 3-Month and 6- applications. Health Services Administration’s Month Follow-Up Survey Place: National Institutes of Health, 6701 (4) Qualitative protocol for interviews Rockledge Drive, Room 9100, Bethesda, MD (SAMHSA) Center for Mental Health 20892 (Teleconference). Services (CMHS) is requesting approval with site coordinators Contact Person: Valerie L. Prenger, Ph.D., from the Office of Management and The table below reflects the MPH, Acting Division Director, Division of Budget (OMB) for new data collection annualized hourly burden.
Responses Instrument/Activity Number of per Total Hours per Total burden respondents respondent responses response hours
MHFA/YMHFA Pre-Training Survey ...... 22,800 1 22,800 .33 7,524 MHFA/YMHFA Post-Training Survey ...... 22,800 1 22,800 .25 5,700 MHFA/YMHFA 3-Month Follow-Up Survey ...... 19,380 1 19,380 .17 3,294 MHFA/YMHFA 6-Month Follow-Up Survey ...... 17,100 1 17,100 .17 2,907 Qualitative Interviews ...... 23 1 23 .75 17.25
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Responses Instrument/Activity Number of per Total Hours per Total burden respondents respondent responses response hours
Total ...... 22,823 ...... 82,103 ...... 19,442
Written comments and 2008 (73 FR 75122); and on April 30, and specimen validity tests on urine recommendations concerning the 2010 (75 FR 22809). specimens: proposed information collection should A notice listing all currently HHS- HHS-Certified Instrumented Initial be sent by August 24, 2016 to the certified laboratories and IITFs is Testing Facilities SAMHSA Desk Officer at the Office of published in the Federal Register Information and Regulatory Affairs, during the first week of each month. If Dynacare, 6628 50th Street NW., Office of Management and Budget any laboratory or IITF certification is Edmonton, AB Canada T6B 2N7, 780– (OMB). To ensure timely receipt of suspended or revoked, the laboratory or 784–1190 (Formerly: Gamma- comments, and to avoid potential delays IITF will be omitted from subsequent Dynacare Medical Laboratories) in OMB’s receipt and processing of mail lists until such time as it is restored to HHS-Certified Laboratories sent through the U.S. Postal Service, full certification under the Mandatory commenters are encouraged to submit Guidelines. ACM Medical Laboratory, Inc., 160 Elmgrove Park, Rochester, NY 14624, their comments to OMB via email to: If any laboratory or IITF has 585–429–2264 [email protected]. withdrawn from the HHS National Aegis Analytical Laboratories, Inc., 345 Although commenters are encouraged to Laboratory Certification Program (NLCP) Hill Ave., Nashville, TN 37210, 615– send their comments via email, during the past month, it will be listed 255–2400 (Formerly: Aegis Sciences commenters may also fax their at the end and will be omitted from the Corporation, Aegis Analytical comments to: 202–395–7285. monthly listing thereafter. Laboratories, Inc., Aegis Analytical Commenters may also mail them to: This notice is also available on the Office of Management and Budget, Laboratories) Internet at http://www.samhsa.gov/ Alere Toxicology Services, 1111 Newton Office of Information and Regulatory workplace. Affairs, New Executive Office Building, St., Gretna, LA 70053, 504–361–8989/ Room 10102, Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: 800–433–3823 (Formerly: Kroll Giselle Hersh, Division of Workplace Laboratory Specialists, Inc., Summer King, Programs, SAMHSA/CSAP, 5600 Laboratory Specialists, Inc.) Statistician. Fishers Lane, Room 16N03A, Rockville, Alere Toxicology Services, 450 [FR Doc. 2016–17411 Filed 7–22–16; 8:45 am] Maryland 20857; 240–276–2600 (voice). Southlake Blvd., Richmond, VA 23236, 804–378–9130 (Formerly: BILLING CODE 4162–20–P SUPPLEMENTARY INFORMATION: The Kroll Laboratory Specialists, Inc., Mandatory Guidelines were initially Scientific Testing Laboratories, Inc.; developed in accordance with Executive DEPARTMENT OF HEALTH AND Kroll Scientific Testing Laboratories, Order 12564 and section 503 of Public HUMAN SERVICES Inc.) Law 100–71. The ‘‘Mandatory Baptist Medical Center-Toxicology Guidelines for Federal Workplace Drug Substance Abuse and Mental Health Laboratory, 11401 I–30, Little Rock, Testing Programs,’’ as amended in the Services Administration AR 72209–7056, 501–202–2783 revisions listed above, requires strict (Formerly: Forensic Toxicology standards that laboratories and IITFs Current List of HHS-Certified Laboratory Baptist Medical Center) must meet in order to conduct drug and Laboratories and Instrumented Initial Clinical Reference Lab, 8433 Quivira specimen validity tests on urine Testing Facilities Which Meet Minimum Road, Lenexa, KS 66215–2802, 800– specimens for federal agencies. Standards To Engage in Urine Drug 445–6917 Testing for Federal Agencies To become certified, an applicant DrugScan, Inc., 200 Precision Road, laboratory or IITF must undergo three Suite 200, Horsham, PA 19044, 800– AGENCY: Substance Abuse and Mental rounds of performance testing plus an 235–4890 Health Services Administration, HHS. on-site inspection. To maintain that Dynacare,* 245 Pall Mall Street, ACTION: Notice. certification, a laboratory or IITF must London, ONT, Canada N6A 1P4, 519– participate in a quarterly performance 679–1630 (Formerly: Gamma- SUMMARY: The Department of Health and testing program plus undergo periodic, Dynacare Medical Laboratories) Human Services (HHS) notifies federal on-site inspections. ElSohly Laboratories, Inc., 5 Industrial agencies of the laboratories and Laboratories and IITFs in the Park Drive, Oxford, MS 38655, 662– Instrumented Initial Testing Facilities applicant stage of certification are not to 236–2609 (IITF) currently certified to meet the be considered as meeting the minimum Fortes Laboratories, Inc., 25749 SW. standards of the Mandatory Guidelines requirements described in the HHS Canyon Creek Road, Suite 600, for Federal Workplace Drug Testing Mandatory Guidelines. A HHS-certified Wilsonville, OR 97070, 503–486–1023 Programs (Mandatory Guidelines). The laboratory or IITF must have its letter of Laboratory Corporation of America Mandatory Guidelines were first certification from HHS/SAMHSA Holdings, 7207 N. Gessner Road, published in the Federal Register on (formerly: HHS/NIDA), which attests Houston, TX 77040, 713–856–8288/ April 11, 1988 (53 FR 11970), and that it has met minimum standards. 800–800–2387 subsequently revised in the Federal In accordance with the Mandatory Laboratory Corporation of America Register on June 9, 1994 (59 FR 29908); Guidelines dated November 25, 2008 Holdings, 69 First Ave., Raritan, NJ September 30, 1997 (62 FR 51118); (73 FR 71858), the following HHS- 08869, 908–526–2400/800–437–4986 April 13, 2004 (69 FR 19644); November certified laboratories and IITFs meet the (Formerly: Roche Biomedical 25, 2008 (73 FR 71858); December 10, minimum standards to conduct drug Laboratories, Inc.)
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Laboratory Corporation of America Quest Diagnostics Incorporated, 8401 DEPARTMENT OF HOUSING AND Holdings, 1904 Alexander Drive, Fallbrook Ave., West Hills, CA 91304, URBAN DEVELOPMENT Research Triangle Park, NC 27709, 818–737–6370 (Formerly: SmithKline [Docket No. FR–5923–N–03] 919–572–6900/800–833–3984 Beecham Clinical Laboratories) (Formerly: LabCorp Occupational Redwood Toxicology Laboratory, Notice of a Federal Advisory Testing Services, Inc., CompuChem 3700650 Westwind Blvd., Santa Rosa, Committee Meeting: Manufactured Laboratories, Inc.; CompuChem CA 95403, 800–255–2159 Housing Consensus Committee Laboratories, Inc., A Subsidiary of Roche Biomedical Laboratory; Roche Southwest Laboratories, 4625 E. Cotton AGENCY: Office of the Assistant CompuChem Laboratories, Inc., A Center Boulevard, Suite 177, Phoenix, Secretary for Housing—Federal Housing Member of the Roche Group) AZ 85040, 602–438–8507/800–279– Commissioner, Department of Housing Laboratory Corporation of America 0027 and Urban Development (HUD). Holdings, 1120 Main Street, STERLING Reference Laboratories, 2617 ACTION: Notice of a Federal Advisory Southaven, MS 38671, 866–827–8042/ East L Street, Tacoma, Washington Committee Meeting: Manufactured 800–233–6339 (Formerly: LabCorp 98421, 800–442–0438 Housing Consensus Committee (MHCC). Occupational Testing Services, Inc.; MedExpress/National Laboratory U.S. Army Forensic Toxicology Drug SUMMARY: This notice sets forth the Center) Testing Laboratory, 2490 Wilson St., schedule and proposed agenda for a LabOne, Inc. d/b/a Quest Diagnostics, Fort George G. Meade, MD 20755– teleconference meeting of the MHCC. 10101 Renner Blvd., Lenexa, KS 5235, 301–677–7085, Testing for The teleconference meeting is open to 66219, 913–888–3927/800–873–8845 Department of Defense (DoD) the public. The agenda provides an (Formerly: Quest Diagnostics Employees Only opportunity for citizens to comment on Incorporated; LabOne, Inc.; Center for the business before the MHCC. * The Standards Council of Canada Laboratory Services, a Division of DATES: The teleconference meeting will (SCC) voted to end its Laboratory LabOne, Inc.) be held on August 9, 2016, 10:00 a.m. MedTox Laboratories, Inc., 402 W. Accreditation Program for Substance to 5:00 p.m. Eastern Daylight Time County Road D, St. Paul, MN 55112, Abuse (LAPSA) effective May 12, 1998. (EDT). The teleconference numbers are: 651–636–7466/800–832–3244 Laboratories certified through that US toll-free: 1–866–813–5287. MetroLab-Legacy Laboratory Services, program were accredited to conduct Participant Code: 4325433. Webinar: 1225 NE. 2nd Ave., Portland, OR forensic urine drug testing as required https://zoom.us/j/350303292; Meeting 97232, 503–413–5295/800–950–5295 by U.S. Department of Transportation ID: 350 303 292. Minneapolis Veterans Affairs Medical (DOT) regulations. As of that date, the FOR FURTHER INFORMATION CONTACT: Center, Forensic Toxicology certification of those accredited Pamela Beck Danner, Administrator and Laboratory, 1 Veterans Drive, Canadian laboratories will continue Designated Federal Official (DFO), Minneapolis, MN 55417, 612–725– under DOT authority. The responsibility Department of Housing and Urban 2088, Testing for Veterans Affairs for conducting quarterly performance Development, Office of Manufactured (VA) Employees Only testing plus periodic on-site inspections Housing Programs, 451 7th Street SW., National Toxicology Laboratories, Inc., of those LAPSA-accredited laboratories Room 9168, Washington, DC 20410, 1100 California Ave., Bakersfield, CA was transferred to the U.S. HHS, with telephone (202) 708–6423 (this is not a 93304, 661–322–4250/800–350–3515 the HHS’ NLCP contractor continuing to One Source Toxicology Laboratory, Inc., toll-free number). Persons who have 1213 Genoa-Red Bluff, Pasadena, TX have an active role in the performance difficulty hearing or speaking may 77504, 888–747–3774 (Formerly: testing and laboratory inspection access this number via TTY by calling University of Texas Medical Branch, processes. Other Canadian laboratories the toll-free Federal Information Relay Clinical Chemistry Division; UTMB wishing to be considered for the NLCP Service at 800–877–8339. Pathology-Toxicology Laboratory) may apply directly to the NLCP SUPPLEMENTARY INFORMATION: Notice of Pacific Toxicology Laboratories, 9348 contractor just as U.S. laboratories do. this meeting provided in accordance DeSoto Ave., Chatsworth, CA 91311, Upon finding a Canadian laboratory to with the Federal Advisory Committee 800–328–6942 (Formerly: Centinela be qualified, HHS will recommend that Act, 5. U.S.C. App. 10(a)(2) through Hospital Airport Toxicology DOT certify the laboratory (Federal implementing regulations at 41 CFR § 102–3.150. The MHCC was established Laboratory) Register, July 16, 1996) as meeting the by the National Manufactured Housing Pathology Associates Medical minimum standards of the Mandatory Construction and Safety Standards Act Laboratories, 110 West Cliff Dr., Guidelines published in the Federal Spokane, WA 99204, 509–755–8991/ of 1974, 42 U.S.C. 5403 (a)(3), as Register on April 30, 2010 (75 FR 800–541–7891x7 amended by the Manufactured Housing Phamatech, Inc., 15175 Innovation 22809). After receiving DOT Improvement Act of 2000, (Pub. L. 106– Drive, San Diego, CA 92128, 888– certification, the laboratory will be 569). According to 42 U.S.C. 5403, as 635–5840 included in the monthly list of HHS- amended, the purposes of the MHCC are Quest Diagnostics Incorporated, 1777 certified laboratories and participate in to: Montreal Circle, Tucker, GA 30084, the NLCP certification maintenance • Provide periodic recommendations 800–729–6432 (Formerly: SmithKline program. to the Secretary to adopt, revise, and interpret the Federal manufactured Beecham Clinical Laboratories; Charles LoDico, SmithKline Bio-Science Laboratories) housing construction and safety Quest Diagnostics Incorporated, 400 Chemist. standards in accordance with this Egypt Road, Norristown, PA 19403, [FR Doc. 2016–17441 Filed 7–22–16; 8:45 am] subsection; 610–631–4600/877–642–2216 BILLING CODE 4160–20–P • Provide periodic recommendations (Formerly: SmithKline Beecham to the Secretary to adopt, revise, and Clinical Laboratories; SmithKline Bio- interpret the procedural and Science Laboratories) enforcement regulations, including
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regulation specifying the permissible DEPARTMENT OF THE INTERIOR ADDRESSES: Interested parties, upon scope and conduct of monitoring in request, may obtain a compact disc (CD– accordance with subsection (b); Bureau of Ocean Energy Management ROM) containing the Final NOS Package • Be organized and carry out its by contacting the BOEM Gulf of Mexico business in a manner that guarantees a Western Gulf of Mexico Planning Area (GOM) Region at the following address: fair opportunity for the expression and (WPA) Outer Continental Shelf (OCS) Gulf of Mexico Region Public consideration of various positions and Oil and Gas Lease Sale 248 (WPA Sale Information Office, Bureau of Ocean for public participation. 248); MMAA104000 Energy Management, 1201 Elmwood The MHCC is deemed an advisory Park Boulevard, New Orleans, Louisiana AGENCY: Bureau of Ocean Energy committee not composed of Federal 70123–2394, (504) 736–2519 or (800) Management (BOEM), Interior. employees. 200–GULF, or by visiting the BOEM Public Comment: Citizens wishing to ACTION: Final Notice of Sale. Web site at http://www.boem.gov/Sale- make comments on the business of the 248/. MHCC are encouraged to register before SUMMARY: On Wednesday, August 24, August 4, 2016, by contacting Home 2016, the Bureau of Ocean Energy Table of Contents Innovation Research Labs, Attention: Management (BOEM) will open and This Final NOS includes the Kevin Kauffman, 400 Prince Georges publicly announce bids for blocks following sections: offered in the Western Gulf of Mexico Blvd., Upper Marlboro, MD 20774, or I. Lease Sale Area email to [email protected] or Planning Area (WPA) Lease Sale 248 II. Statutes And Regulations call 1–888–602–4663. Written comments (WPA Sale 248), in accordance with the III. Lease Terms and Economic Conditions are encouraged. The MHCC strives to provisions of the Outer Continental IV. Lease Stipulations accommodate citizen comments to the Shelf Lands Act (OCSLA) (43 U.S.C. V. Information to Lessees extent possible within the time 1331–1356, as amended) and the VI. Maps constraints of the meeting agenda. implementing regulations issued VII. Bidding Instructions Advance registration is strongly pursuant thereto (30 CFR parts 550 and VIII. Bidding Rules and Restrictions IX. Forms encouraged. The MHCC will also 556). The WPA Sale 248 Final Notice of Sale (NOS) Package (Final NOS X. The Lease Sale provide an opportunity for public XI. Delay of Sale comment on specific matters before the Package) contains information essential MHCC. to potential bidders. Bidders are charged I. Lease Sale Area with knowing the contents of the Tentative Agenda documents contained in the Final NOS Blocks Offered for Leasing: BOEM August 9, 2016 Package. proposes to offer for bid in this lease sale all of the available unleased acreage I. Call to Order—Chair & Designated Date and Time: Bid opening for WPA Sale 248 will begin at 9:00 a.m. on in the WPA, except those blocks listed Federal Officer (DFO) in ‘‘Blocks Not Offered for Leasing’’ II. Opening Remarks—Chair Wednesday, August 24, 2016. All times referred to in this document are local below. A. Roll-Call—Administering Blocks Not Offered for Leasing: The Organization (AO) time in New Orleans, unless otherwise specified. following whole and partial blocks are B. Introductions not offered for lease in this sale: i. HUD Staff Location: There will be a change in • Whole and partial blocks that lie ii. Guests the bid opening process for this sale. within the boundaries of the Flower C. Administrative Announcements— Bid opening will still occur at the Garden Banks National Marine DFO and AO Mercedes-Benz Superdome, 1500 Sanctuary (Sanctuary) in the East and III. Approve MHCC draft minutes from Sugarbowl Drive, New Orleans, West Flower Garden Banks and Stetson January 19–21, MHCC Meeting Louisiana 70112, but the bid opening at Bank. The following list identifies all IV. Discussion on conduct of meeting the Superdome facility will not be open blocks affected by the Sanctuary V. Review of Summary of DOE Proposed to the public. Instead, the bid opening boundaries: Rule on Manufactured Home will be available for the public to view Energy Standards (HUD Staff) DOE in real-time on BOEM’s Web site at High Island, East Addition, South Power Point Summary and link to www.boem.gov via video live-streaming Extension (Leasing Map TX7C) proposed rule can be found on beginning at 9:00 a.m. on the day of the Whole Block: A–398. HUD’s Web site at: hud.gov/mhs sale. The use of live-streaming to Portions of Blocks: A–366, A–367, A– VI. Public Comments announce bids is being implemented to 374, A–375, A–383, A–384, A–385, A– VII. Lunch provide greater access to a wider 388, A–389, A–397, A–399, A–401. VIII. Continue Review and Summary of national and international audience DOE requests for comments on the while ensuring the security of BOEM High Island, South Addition (Leasing proposed Rule staff. BOEM will also post the results on Map TX7B) IX. Break its Web site after bid opening and Portions of Blocks: A–502, A–513. X. Committee recommendations on reading is completed. proposed rule Garden Banks (OPD NG15–02) Bid Submission Deadline: BOEM XI. Public Comments must receive all sealed bids between Portions of Blocks: 134, 135. XII. Wrap Up/Next Steps—DFO/AO • The following blocks whose lease XIII. Adjourn 8:00 a.m. and 4:00 p.m. on normal working days, and from 8:00 a.m. to the status is currently under appeal: Dated: July 19, 2016. Bid Submission Deadline of 10:00 a.m. Matagorda Island (Leasing Map TX4) Pamela Beck Danner, on Tuesday, August 23, 2016, the day Block 632 Administrator, Office of Manufactured before the lease sale. For more Matagorda Island (Leasing Map TX4) Housing Programs. information on bid submission, see Block 656 [FR Doc. 2016–17568 Filed 7–22–16; 8:45 am] Section VII, ‘‘Bidding Instructions,’’ of Matagorda Island (Leasing Map TX4) BILLING CODE 4210–67–P this document. Block 657
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Please Note: A CD–ROM (in ArcGIS and of each whole and partial block in this provision of the lease. Each lease is Acrobat (.pdf) format) containing all of the lease sale is shown in the document subject to amendments to the applicable GOM Region leasing maps and official ‘‘List of Blocks Available for Leasing’’ statutes and regulations, including, but protraction diagrams (OPDs), is available included in the Final NOS Package. not limited to, OCSLA, that do not from the BOEM Gulf of Mexico Region Public Information Office for a price of $15.00. The Some of these blocks may be partially explicitly conflict with an express GOM Region leasing maps and OPDs also are leased or transected by administrative provision of the lease. The lessee available online for free in .pdf and .gra lines, such as the Federal/State expressly bears the risk that such new formats at http://www.boem.gov/Official- jurisdictional line, or may not be or amended statutes and regulations Protraction-Diagrams. offered. A bid on a block must include (i.e., those that do not explicitly conflict For the current status of all WPA all of the available Federal acreage of with an express provision of the lease) leasing maps and OPDs, please refer to that block. Information on the unleased may increase or decrease the lessee’s 66 FR 28002 (May 21, 2001), 67 FR portions of such blocks can be found in obligations under the lease. the document entitled ‘‘Western 60701 (September 26, 2002), 72 FR III. Lease Terms and Economic Planning Area, Lease Sale 248, August 27590 (May 16, 2007), 76 FR 54787 Conditions (September 2, 2011), 79 FR 32572 (June 24, 2016—Unleased Split Blocks and 5, 2014), and 80 FR 3251 (January 22, Available Unleased Acreage of Blocks Lease Terms with Aliquots and Irregular Portions 2015). OCS Lease Form In addition, Supplemental Official under Lease or Deferred,’’ which is OCS Block Diagrams (SOBDs) for blocks included in this Final NOS Package. BOEM will use Form BOEM–2005 containing the U.S. 200-Nautical Mile For additional information, please call (October 2011) to convey leases Limit line and the U.S.-Mexico Mr. Lenny Coats, Chief of the Mapping resulting from this sale. This lease form Maritime and Continental Shelf and Automation Section, at (504) 731– may be viewed on the BOEM Web site Boundary line are available. These 1457. at http://www.boem.gov/About-BOEM/ Procurement-Business-Opportunities/ SOBDs are available from the BOEM II. Statutes and Regulations Gulf of Mexico Region Public BOEM-OCS-Operation-Forms/BOEM- Information Office and on BOEM’s Web Each lease is issued pursuant and 2005.aspx. The lease form will be site at http://www.boem.gov/ subject to OCSLA, implementing amended to conform with the specific Supplemental-Official-OCS-Block- regulations promulgated pursuant terms, conditions, and stipulations Diagrams-SOBDs/. thereto, and other applicable statutes applicable to each individual lease. The For additional information, or to order and regulations in existence upon the terms, conditions, and stipulations the above referenced maps or diagrams, effective date of the lease, as well as applicable to this sale are set forth please call the Mapping and those applicable statutes enacted and below. regulations promulgated thereafter, Automation Section at (504) 731–1457. Initial Periods All blocks being offered in the lease except to the extent that the after- sale are shown on these leasing maps enacted statutes and regulations Initial periods are summarized in the and OPDs. The available Federal acreage explicitly conflict with an express following table:
Water depth (Meters) Initial period
0 to < 400 ...... Standard initial period is 5 years; the lessee may earn an additional 3 years (i.e., for an 8-year extended initial period) if a well is spudded targeting hydrocarbons below 25,000 feet True Vertical Depth Subsea (TVD SS) during the first 5 years of the lease. 400 to < 800 ...... Standard initial period is 5 years; the lessee will earn an additional 3 years (i.e., for an 8-year extended ini- tial period) if a well is spudded during the first 5 years of the lease. 800 to < 1,600 ...... Standard initial period is 7 years; the lessee will earn an additional 3 years (i.e., for a 10-year extended ini- tial period) if a well is spudded during the first 7 years of the lease. 1,600 + ...... 10 years.
(1) The standard initial period for a In order to earn the 8-year extended receives confirmation from BOEM. The lease in water depths less than 400 initial period, the lessee is required to Regional Supervisor for Leasing and meters issued as a result of this sale is submit to the BOEM Gulf of Mexico Plans will confirm in writing, within 30 5 years. If the lessee spuds a well Regional Supervisor for Leasing and days of receiving the lessee’s letter, targeting hydrocarbons below 25,000 Plans, as soon as practicable, but in any whether the lessee has earned the feet TVD SS within the first 5 years of instance not more than 30 days after extended initial period and update the lease, then the lessee may earn an completion of the drilling operation, a BOEM records accordingly. additional 3 years, resulting in an 8-year letter providing the well number, spud A lessee that has earned the 8-year extended initial period. The lessee will date, information demonstrating a target extended initial period by spudding a earn the 8-year extended initial period below 25,000 feet TVD SS and whether well with a hydrocarbon target below when the well is drilled to a target that target was reached, and if 25,000 feet TVD SS during the standard below 25,000 feet TVD SS, or the lessee applicable, any safety, mechanical, or 5-year initial period of the lease will not may earn the 8-year extended initial other problems encountered that be granted a suspension for that same period under the regulations at 30 CFR period in cases where the well targets, prevented the well from reaching a 250.175 because the lease is not at risk but does not reach, a depth below depth below 25,000 feet TVD SS. This letter must request confirmation that the of expiring. 25,000 feet TVD SS due to mechanical lessee earned the 8-year extended initial (2) The standard initial period for a or safety reasons, where sufficient period. The extended initial period is lease in water depths ranging from 400 evidence is provided. not effective unless and until the lessee to less than 800 meters issued as a result
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of this sale is 5 years. If the lessee spuds result of this sale will be 7 years. If the deeper issued as a result of this sale will a well within the standard 5-year initial lessee spuds a well within the standard be 10 years. period of the lease, the lessee will earn 7-year initial period of the lease, the Economic Conditions an additional 3 years, resulting in an 8- lessee will earn an additional 3 years, year extended initial period. resulting in a 10-year extended initial Minimum Bonus Bid Amounts In order to earn the 8-year extended period. • $25.00 per acre or fraction thereof initial period, the lessee is required to In order to earn the 10-year extended for blocks in water depths less than 400 submit to the BOEM Gulf of Mexico initial period, the lessee is required to meters; and Regional Supervisor for Leasing and submit to the BOEM Gulf of Mexico • $100.00 per acre or fraction thereof Plans, as soon as practicable, but in no Regional Supervisor for Leasing and for blocks in water depths 400 meters or case more than 30 days after spudding Plans, as soon as practicable, but in no deeper. a well, a letter providing the well case more than 30 days after spudding BOEM will not accept a bonus bid number and spud date, and requesting a well, a letter providing the well unless it provides for a cash bonus in confirmation that the lessee earned the number and spud date, and requesting the amount equal to, or exceeding, the 8-year extended initial period. Within confirmation that the lessee earned the specified minimum bid of $25.00 per 30 days of receipt of the request, the 10-year extended initial period. Within acre or fraction thereof for blocks in Regional Supervisor for Leasing and 30 days of receipt of the request, the water depths less than 400 meters, and Plans will provide written confirmation Regional Supervisor for Leasing and $100.00 per acre or fraction thereof for of whether the lessee has earned the Plans will provide written confirmation blocks in water depths 400 meters or extended initial period and update of whether the lessee has earned the deeper. BOEM records accordingly. extended initial period and update (3) The standard initial period for a BOEM records accordingly. Rental Rates lease in water depths ranging from 800 (4) The standard initial period for a Annual rental rates are summarized in to less than 1,600 meters issued as a lease in water depths 1,600 meters or the following table:
RENTAL RATES PER ACRE OR FRACTION THEREOF
Water depth Years (meters) 1–5 Years 6, 7, & 8 +
0 to < 200 ...... $7.00 $14.00, $21.00, & $28.00 200 to < 400 ...... 11.00 $22.00, $33.00, & $44.00 400 + ...... 11.00 $16.00
Escalating Rental Rates for Leases With forms of royalty relief is authorized IV. Lease Stipulations an 8-Year Extended Initial Period in under existing BOEM regulations at 30 One or more of the following Water Depths Less Than 400 Meters CFR part 560. The specific details stipulations may be applied to leases Any lessee with a lease in less than relating to eligibility and issued as a result of this sale. The 400 meters water depth who earns an 8- implementation of the various royalty detailed text of these stipulations is year extended initial period will pay an relief programs, including those contained in the ‘‘Lease Stipulations’’ escalating rental rate as shown above. involving the use of RSVs, are codified section of this Final NOS Package. The rental rates after the fifth year for in BSEE regulations at 30 CFR part 203. (1) Topographic Features; blocks in less than 400 meters water In this sale, the only royalty relief (2) Military Areas; depth will become fixed and no longer program being offered, which involves (3) United Nations Convention on the escalate, if another well is spudded the provision of RSVs, relates to the Law of the Sea Royalty Payment; targeting hydrocarbons below 25,000 drilling of ultra-deep wells in water (4) Protected Species; and feet TVD SS after the fifth year of the depths of less than 400 meters, as (5) Agreement between the United States of America and the United lease, and BOEM concurs that such a described below. well has been spudded. In this case, the Mexican States Concerning rental rate will become fixed at the Royalty Suspension Volumes on Gas Transboundary Hydrocarbon Reservoirs rental rate in effect during the lease year Production From Ultra-Deep Wells in the Gulf of Mexico. in which the additional well was V. Information to Lessees spudded. Leases issued as a result of this sale may be eligible for RSVs incentives on The following Information to Lessees Royalty Rate gas produced from ultra-deep wells (ITL) clauses provide detailed • 18.75%. pursuant to 30 CFR part 203. These information on certain issues pertaining regulations implement the requirements to this oil and gas lease sale. The Minimum Royalty Rate of the Energy Policy Act of 2005. Under detailed text of the following ITL • $7.00 per acre or fraction thereof this program, wells on leases in less clauses is contained in the ‘‘Information per year for blocks in water depths less than 400 meters water depth and to Lessees’’ section of this Final NOS than 200 meters; and Package. • completed to a drilling depth of 20,000 $11.00 per acre or fraction thereof feet TVD SS or deeper receive a RSV of (1) Navigation Safety; per year for blocks in water depths 200 (2) Ordnance Disposal Areas in the 35 billion cubic feet on the production meters or greater. WPA; of natural gas. This RSVs incentive is (3) Existing and Proposed Artificial Royalty Suspension Provisions subject to applicable price thresholds Reefs/Rigs-to-Reefs; The issuance of leases with royalty set forth in the regulation at 30 CFR part (4) Lightering Zones; suspension volumes (RSVs) or other 203. (5) Indicated Hydrocarbons List;
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(6) Military Areas in the WPA; legally binds the bidder(s) to comply • amend an areawide development (7) BSEE Inspection and Enforcement with all applicable regulations, bond via bond rider; of Certain U.S. Coast Guard Regulations; including payment of one-fifth of the • provide a letter of credit; or (8) Potential Sand Dredging Activities bonus bid amount on all apparent high • provide a lump sum payment in in the WPA; bids. advance via EFT. (9) Notice of Arrival on the Outer The information required on the For more information on EFT Continental Shelf; bid(s) is specified in the document ‘‘Bid procedures, see Section X of this (10) Bidder/Lessee Notice of Form’’ contained in the Final NOS document entitled ‘‘The Lease Sale.’’ Obligations Related to Criminal/Civil Package. A blank bid form is provided Affirmative Action Charges and Offenses, Suspension, or in the Final NOS Package for Debarment; convenience and may be copied and Prior to bidding, each bidder should (11) Protected Species; and completed with the necessary file Equal Opportunity Affirmative (12) Proposed Flower Garden Banks information described above. Action Representation Form BOEM– Expansion. 2032 (October 2011) and Equal Bid Envelope VI. Maps Opportunity Compliance Report Each bid must be submitted in a Certification Form BOEM–2033 The maps pertaining to this lease sale separate sealed envelope labeled as (October 2011) with the BOEM GOM may be found on the BOEM Web site at follows: Region Adjudication Section. This http://www.boem.gov/Sale-248. The • ‘‘Sealed Bid for Oil and Gas Lease certification is required by 41 CFR part following maps also are included in this Sale 248, not to be opened until 9:00 60 and Executive Order No. 11248, Final NOS Package: a.m. Wednesday, August 24, 2016;’’ issued September 24, 1965, as amended Lease Terms and Economic Conditions • map name and number or OPD by Executive Order No. 11375, issued Map name and number; October 13, 1967. Both forms must be • on file for the bidder(s) in the GOM The lease terms, economic conditions, block number for block bid upon; Region Adjudication Section prior to the and the blocks to which these terms and and • execution of any lease contract. conditions apply are shown on the map the exact name and qualification number of the submitting bidder only. entitled ‘‘Final, Western Planning Area, Geophysical Data and Information Lease Sale 248, August 24, 2016, Lease The Final NOS Package includes a Statement sample bid envelope for reference. Terms and Economic Conditions.’’ The Geophysical Data and Stipulations and Deferred Blocks Map Mailed Bids Information Statement (GDIS) is If bids are mailed, please address the composed of three parts: The blocks to which one or more lease (1) The ‘‘Statement’’ page includes the stipulations may apply are shown on envelope containing the sealed bid envelope(s) as follows: Attention: company representatives’ information the map entitled ‘‘Final, Western and lists of blocks bid on that used Planning Area, Lease Sale 248, August Leasing and Financial Responsibility Section, BOEM Gulf of Mexico Region, proprietary data and those blocks bid on 24, 2016, Stipulations and Deferred that did not use proprietary data; Blocks Map.’’ 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123–2394, (2) the ‘‘Table’’ listing the required VII. Bidding Instructions Contains Sealed Bids for WPA Oil and data about each proprietary survey used Gas Lease Sale 248, Please Deliver to (see below); and Bids may be submitted in person or (3) the ‘‘Maps’’ being the live trace Ms. Cindy Thibodeaux, 2nd Floor, by mail at the address below. maps for each survey that are identified Immediately. Instructions on how to submit a bid, in the GDIS statement and table. secure payment of the advance bonus Please Note: Bidders mailing bid(s) are Every bidder submitting a bid on a bid deposit (if applicable), and what advised to call Ms. Cindy Thibodeaux at block in WPA Sale 248, or participating information must be included with the (504) 736–2809 or Mr. Carrol Williams at as a joint bidder in such a bid, must bid are as follows: (504) 736- 2803, immediately after putting submit at the time of bid submission all their bid(s) in the mail. If BOEM receives Bid Form bids later than the Bid Submission Deadline, three parts of the GDIS. A bidder must submit the GDIS even if a joint bidder For each block bid upon, a separate the BOEM Regional Director (RD) will return or bidders on a specific block also have sealed bid must be submitted in a sealed those bids unopened to bidders. Please see submitted a GDIS. Any speculative data envelope (as described below) and ‘‘Section XI. Delay of Sale’’ regarding BOEM’s discretion to extend the Bid that has been reprocessed externally or include the following: • Submission Deadline in the case of an ‘‘in-house’’ is considered proprietary Total amount of the bid in whole unexpected event (e.g., flooding or travel dollars only; due to the proprietary processing and is • restrictions) and how bidders can obtain no longer considered speculative. sale number; more information on such extensions. • sale date; The GDIS must be submitted in a • separate and sealed envelope, and each bidder’s exact name; Advance Bonus Bid Deposit Guarantee • each bidder’s proportionate interest, identify all proprietary data; stated as a percentage, using a Bidders that are not currently an OCS reprocessed speculative data, and/or maximum of five decimal places (e.g., oil and gas lease record title holder or any Controlled Source Electromagnetic 33.33333%); designated operator, or those that ever surveys, Amplitude Versus Offset, • typed name and title, and signature have defaulted on a one-fifth bonus bid Gravity, or Magnetic data; or other of each bidder’s authorized officer; deposit, by Electronic Funds Transfer information used as part of the decision • each bidder’s qualification number; (EFT) or otherwise, must guarantee to bid or participate in a bid on the • map name and number or OPD (secure) the payment of the one-fifth block. name and number; bonus bid deposit prior to bid The GDIS statement must include the • block number; and submission using one of the following name, phone number, and full address • statement acknowledging that the four methods: of a contact person and an alternate who bidder(s) understands that this bid • Provide a third-party guarantee; are both knowledgeable about the
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information and data listed and who are the survey (see the ‘‘Example of (3) Persons must have a current On- available for 30 days after the sale date. Preferred Format’’ in the Final NOS line Representations and Certifications The GDIS statement also must include Package for additional information). Application at https://www.sam.gov. a list of all blocks bid upon that did not Pursuant to 30 CFR 551.12 and 30 Please Note: The GDIS Information Table use proprietary or reprocessed pre- or CFR 556.501, as a condition of the sale, must be submitted digitally, preferably as an post-stack geophysical data and the BOEM Gulf of Mexico RD requests Excel spreadsheet, on a CD or DVD along information as part of the decision to that all bidders and joint bidders submit with the seismic data map(s). If bidders have bid or to participate as a joint bidder in the proprietary data identified on their any questions, please contact Ms. Dee Smith the bid. The GDIS statement must be GDIS within 30 days after the lease sale at (504) 736–2706, or Mr. John Johnson at submitted even if no proprietary (unless they are notified after the lease (504) 736–2455. geophysical data and information were sale that BOEM has withdrawn the used in bid preparation for the block. request). This request only pertains to Bidders should refer to Section X of The GDIS table should have columns proprietary data that is not this document, ‘‘The Lease Sale: that clearly state the sale number; the commercially available. Commercially Acceptance, Rejection, or Return of bidder company’s name; the block area available data is not required to be Bids,’’ regarding a bidder’s failure to and block number bid on; the owner of submitted to BOEM, and reimbursement comply with the requirements of the the original data set (i.e., who initially will not be provided if such data is Final NOS, including any failure to acquired the data); the industry’s submitted by a bidder. The BOEM Gulf submit information as required in this original name of the survey (e.g., E of Mexico RD will notify bidders and Final NOS or Final NOS Package. Octopus); the BOEM permit number for joint bidders of any withdrawal of the Telephone Numbers/Addresses of the survey; whether the data set is a fast request, for all or some of the Bidders track version; whether the data is proprietary data identified on the GDIS, speculative or proprietary; the data type within 15 days of the lease sale. BOEM requests that bidders provide (e.g., 2–D, 3–D, or 4–D; pre-stack or Pursuant to 30 CFR part 551 and 30 CFR this information in the suggested format post-stack; and time or depth); 556.501 as a condition of this sale, all prior to or at the time of bid submission. migration algorithm (e.g., Kirchhoff bidders required to submit data must The suggested format is included in the Migration, Wave Equation Migration, ensure that the data is received by Final NOS Package. The form must not Reverse Migration, Reverse Time BOEM no later than the 30th day be enclosed inside the sealed bid Migration) of the data; and areal extent following the lease sale, or the next envelope. of bidder survey (i.e., number of line business day if the submission deadline miles for 2–D or number of blocks for falls on a weekend or Federal holiday. Additional Documentation 3–D). Provide the computer storage size, The data must be submitted to BOEM at BOEM may require bidders to submit to the nearest gigabyte, of each seismic the following address: Bureau of Ocean other documents in accordance with 30 data and velocity volume used to Energy Management, Resource Studies, CFR 556.501. evaluate the lease block in question. MS 881A, 1201 Elmwood Park Blvd., This information will be used in New Orleans, LA 70123–2304. VIII. Bidding Rules and Restrictions BOEM recommends that bidders mark estimating the reproduction costs for Restricted Joint Bidders each data set, if applicable. The the submission’s external envelope as availability of reimbursement of ‘‘Deliver Immediately to DASPU.’’ On May 17, 2016, BOEM published production costs will be determined BOEM also recommends that the data be the most recent List of Restricted Joint consistent with 30 CFR 551.13. The next submitted in an internal envelope, or Bidders in the Federal Register at 81 FR column should state who reprocessed otherwise marked, with the following 30548. Potential bidders are advised to the data (e.g., external company name or designation: ‘‘Proprietary Geophysical refer to the Federal Register, prior to ‘‘in-house’’) and when final Data Submitted Pursuant to Lease Sale bidding, for the most current List of reprocessing was completed (month and 248 and used during evaluation of Restricted Joint Bidders in place at the year). If the data was sent to BOEM for Block.’’ time of the lease sale. Please refer to the bidding in a previous lease sale, list the In the event a person supplies any joint bidding provisions at 30 CFR date the data was processed (month and type of data to BOEM, that person must 556.511 and 556.512. year) and indicate if Amplitude Versus meet the following requirements to Offset (AVO) data was used in the qualify for reimbursement: Authorized Signatures evaluation. BOEM reserves the right to (1) Persons must be registered with All signatories executing documents query about alternate data sets, to the System for Award Management quality check, and to compare the listed (SAM), formerly known as the Central on behalf of bidder(s) must execute the and alternative data sets to determine Contractor Registration (CCR). CCR same in conformance with the BOEM which data set most closely meets the usernames will not work in SAM. A qualification records. Bidders are needs of the fair market value new SAM User Account is needed to advised that BOEM considers the signed determination process. An example of register or update an entity’s records. bid to be a legally binding obligation on the preferred format of the table may be The Web site for registering is https:// the part of the bidder(s) to comply with found in the Final NOS Package, and a www.sam.gov. all applicable regulations, including blank digital version of the preferred (2) Persons must be enrolled in the payment of one-fifth of the bonus bid on table may be accessed on the WPA Sale Department of the Treasury’s Internet all high bids. A statement to this effect 248 Web page at http://www.boem.gov/ Payment Platform (IPP) for electronic must be included on each bid form (see Sale-248/. invoicing. The person must enroll in the the document ‘‘Bid Form’’ contained in The GDIS maps are live trace maps (in IPP at https://www.ipp.gov/. Access the Final NOS Package). .pdf and ArcGIS shape files) that should then will be granted to use the IPP for Unlawful Combination or Intimidation be submitted for each proprietary survey submitting requests for payment. When that is identified in the GDIS table. They a request for payment is submitted, it BOEM warns bidders against violation should illustrate the actual areal extent must include the assigned Purchase of 18 U.S.C. 1860, prohibiting unlawful of the proprietary geophysical data in Order Number on the request. combination or intimidation of bidders.
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Bid Withdrawal (6) GDIS Form; and (3) the amount of the bid has been Bids may be withdrawn only by (7) GDIS Envelope Form. determined to be adequate by the written request delivered to BOEM prior authorized officer. X. The Lease Sale Any bid submitted that does not to the Bid Submission Deadline. The conform to the requirements of the Final withdrawal request must be on Bid Opening and Reading NOS and Final NOS Package, OCSLA, company letterhead and must contain Sealed bids received in response to BOEM regulations, or other applicable the bidder’s name, its BOEM the Final NOS will be opened at the statutes or regulations, may be rejected qualification number, the map name/ place, date, and hour specified in the and returned to the bidder. The U.S. number, and the block number(s) of the ‘‘DATE AND TIME’’ and ‘‘LOCATION’’ Department of Justice and the Federal bid(s) to be withdrawn. The withdrawal sections of this document. The opening Trade Commission will review the request must be executed by an of the bids is for the sole purpose of results of the lease sale for antitrust authorized signatory of the bidder and publicly announcing and recording the issues prior to the acceptance of bids must be executed in conformance with bids received; no bids will be accepted and issuance of leases. the BOEM qualification records. or rejected at that time. Signatories must be authorized to bind Bid Adequacy Review Procedures their respective legal business entities Bonus Bid Deposit for Apparent High To ensure that the U.S. Government (e.g., a corporation, partnership, or Bids receives a fair return for the conveyance LLC), and documentation must be on Each bidder submitting an apparent of leases from this sale, high bids will file with BOEM setting forth this high bid must submit a bonus bid be evaluated in accordance with authority to act on the business entity’s deposit to the U.S. Department of the BOEM’s bid adequacy procedures which behalf for purposes of bidding and lease Interior’s Office of Natural Resources are available at http://www.boem.gov/ execution under OCSLA (e.g., business Revenue (ONRR) equal to one-fifth of Oil-and-Gas-Energy-Program/Leasing/ charter or articles, incumbency the bonus bid amount for each such bid. Regional-Leasing/Gulf-of-Mexico- certificate, or power of attorney). The A copy of the notification of the high Region/Bid-Adequacy-Procedures.aspx. name and title of the authorized bidder’s one-fifth bonus bid amount Lease Award signatory must be typed under the may be obtained on the BOEM Web site signature block on the withdrawal at http://www.boem.gov/Sale-248/ BOEM requires each bidder awarded request. The BOEM Gulf of Mexico RD, under the heading ‘‘Notification of EFT a lease to: (1) execute all copies of the lease or the RD’s designee, will indicate any 1/5 Bonus Liability’’ after 1:00 p.m. on (Form BOEM–2005 [October 2011], as approval by signing and dating the the day of the sale. All payments must withdrawal request. amended); be deposited electronically into an (2) pay by EFT the balance of the Bid Rounding interest-bearing account in the U.S. bonus bid amount and the first year’s Treasury by 11:00 a.m. Eastern Time the The bonus bid amount must be stated rental for each lease issued in day following the bid reading (no accordance with the requirements of 30 in whole dollars. Minimum bonus bid exceptions). Account information is calculations, including all rounding, for CFR 218.155 and 556.520; and provided in the ‘‘Instructions for (3) satisfy the bonding requirements all blocks are shown in the document Making Electronic Funds Transfer entitled ‘‘List of Blocks Available for of 30 CFR part 556, subpart I, as Bonus Payments’’ found on the BOEM amended. Leasing,’’ which is included in this Web site identified above. Final NOS Package. If the acreage of a ONRR requests that only one block contains a decimal figure, then BOEM requires bidders to use EFT transaction be used for payment of the prior to calculating the minimum bonus procedures for payment of one-fifth four-fifths bonus bid amount and the bid, BOEM has rounded up to the next bonus bid deposits for WPA Sale 248, first year’s rental. following the detailed instructions whole acre. The appropriate minimum XI. Delay of Sale contained on the ONRR Payment rate per acre was then applied to the The BOEM Gulf of Mexico RD has the whole (rounded up) acreage. If this Information Web page at http:// www.onrr.gov/FM/PayInfo.htm. discretion to change any date, time, calculation resulted in a fractional and/or location specified in the Final dollar amount, the minimum bonus bid Acceptance of a deposit does not constitute and will not be construed as NOS Package in case of an event that the was rounded up to the next whole BOEM Gulf of Mexico RD deems may dollar amount. The bonus bid amount acceptance of any bid on behalf of the United States. interfere with the carrying out of a fair must be greater than or equal to the and orderly lease sale process. Such minimum bonus bid in whole dollars. Withdrawal of Blocks events could include, but are not IX. Forms The United States reserves the right to limited to, natural disasters (e.g., earthquakes, hurricanes, and floods), The Final NOS Package includes withdraw any block from this lease sale wars, riots, acts of terrorism, fires, instructions, samples, and/or the prior to issuance of a written acceptance strikes, civil disorder, or other events of preferred format for the following items. of a bid for the block. a similar nature. In case of such events, BOEM strongly encourages bidders to Acceptance, Rejection, or Return of Bids bidders should call (504) 736–0557, or use these formats; should bidders use access the BOEM Web site at http:// another format, they are responsible for The United States reserves the right to www.boem.gov, for information including all the information specified reject any and all bids. No bid will be regarding any changes. for each item in this Final NOS Package. accepted, and no lease for any block (1) Bid Form; will be awarded to any bidder, unless: Dated: July 18, 2016. (2) Sample Completed Bid; (1) the bidder has complied with all Abigail Ross Hopper, (3) Sample Bid Envelope; requirements of the Final NOS Package Director, Bureau of Ocean Energy (4) Sample Bid Mailing Envelope; and applicable regulations; Management. (5) Telephone Numbers/Addresses of (2) the bid submitted is the highest [FR Doc. 2016–17574 Filed 7–22–16; 8:45 am] Bidders Form; valid bid; and BILLING CODE 4310–MR–P
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DEPARTMENT OF THE INTERIOR the WPA’s 28.58 million acres. As of required by BOEM or the Bureau of June 2016, approximately 23.7 million Safety and Environmental Enforcement Bureau of Ocean Energy Management acres of the proposed WPA lease sale as a result of post-lease plan and permit area are unleased. The estimated review processes for the Gulf of Mexico [Docket No. BOEM–2016–0008] amount of resources projected to be OCS Region. Gulf of Mexico, Outer Continental Shelf developed as a result of the proposed After careful consideration, BOEM (OCS), Western Planning Area (WPA) WPA lease sale is 0.116–0.200 billion has selected the proposed action, which Oil and Gas Lease Sale 248; barrels of oil (BBO) and 0.538–0.938 is identified as BOEM’s preferred MMAA104000 trillion cubic feet (Tcf) of gas. alternative (Alternative A) in the WPA Alternative B—Exclude the Unleased 248 Supplemental EIS. BOEM’s AGENCY: Bureau of Ocean Energy Blocks Subject to the Topographic selection of the preferred alternative Management (BOEM), Interior. Features Stipulation: This alternative meets the purpose and need for the ACTION: Notice of availability of a record would offer for lease all unleased blocks proposed action, as identified in the of decision within the proposed WPA lease sale WPA 248 Supplemental EIS, and area, as described for the proposed reflects an orderly resource SUMMARY: BOEM is announcing the action (Alternative A), but it would development with protection of the availability of a Record of Decision for exclude from leasing any unleased human, marine, and coastal proposed oil and gas WPA Lease Sale blocks subject to the Topographic environments while also ensuring that 248. This Record of Decision identifies Features Stipulation. The estimated the public receives an equitable return the Bureau’s selected alternative for amount of resources projected to be for these resources and that free-market proposed WPA Lease Sale 248, which is developed under this alternative is competition is maintained. analyzed in the Gulf of Mexico OCS Oil 0.116–0.200 BBO and 0.538–0.938 Tcf Authority: This Notice of Availability of and Gas Lease Sale: 2016; Western of gas. The number of blocks that would a Record of Decision is published pursuant Planning Area Lease Sale 248 Final not be offered under Alternative B to the regulations (40 CFR part 1503) Supplemental Environmental Impact represents only a small percentage of implementing the provisions of the National Statement (WPA 248 Supplemental the total number of blocks to be offered Environmental Policy Act of 1969, as EIS). BOEM has selected the proposed under Alternative A; therefore, it is amended (42 U.S.C. 4321 et seq.). action, which is identified as BOEM’s expected that the levels of activity for Dated: July 18, 2016. preferred alternative (Alternative A) in Alternative B would be essentially the Abigail Ross Hopper, the WPA 248 Supplemental EIS. The same as those projected for the WPA Director, Bureau of Ocean Energy Record of Decision and associated proposed action. Management. Alternative C—No Action: This information are available on the [FR Doc. 2016–17566 Filed 7–22–16; 8:45 am] alternative is the cancellation of agency’s Web site at http:// BILLING CODE 4310–MR–P www.boem.gov/nepaprocess/. proposed WPA Lease Sale 248 and is identified as the environmentally FOR FURTHER INFORMATION CONTACT: For preferred alternative. more information on the Record of Lease Stipulations—The WPA 248 DEPARTMENT OF JUSTICE Decision, you may contact Mr. Gary D. Supplemental EIS describes all lease Antitrust Division Goeke, Bureau of Ocean Energy stipulations, which are included in the Management, Gulf of Mexico OCS Final Notice of Sale Package. The five Region, 1201 Elmwood Park Boulevard Notice Pursuant to the National lease stipulations for proposed WPA Cooperative Research and Production (GM 623E), New Orleans, Louisiana Lease Sale 248 are the Topographic 70123–2394. You may also contact Mr. Act of 1993—Advanced Media Features Stipulation, the Military Areas Workflow Association, Inc. Goeke by telephone at 504–736–3233. Stipulation, the Protected Species SUPPLEMENTARY INFORMATION: In the Stipulation, the United Nations Notice is hereby given that, on June WPA 248 Supplemental EIS, BOEM Convention on the Law of the Sea 22, 2016, pursuant to section 6(a) of the evaluated three alternatives, which are Royalty Payment Stipulation, and the National Cooperative Research and summarized below with regard to Stipulation on the Agreement between Production Act of 1993, 15 U.S.C. 4301 proposed WPA Lease Sale 248: the United States of America and the et seq. (‘‘the Act’’), Advanced Media Alternative A—The Proposed Action: United Mexican States Concerning Workflow Association, Inc. has filed This is BOEM’s preferred alternative. Transboundary Hydrocarbon Reservoirs written notifications simultaneously This alternative would offer for lease all in the Gulf of Mexico. Several of these with the Attorney General and the unleased blocks within the proposed lease stipulations have been developed Federal Trade Commission disclosing WPA lease sale area for oil and gas to help mitigate potential impacts from changes in its membership. The operations with the following exception: oil and gas activities. All practicable notifications were filed for the purpose whole and partial blocks within the means to avoid or minimize of extending the Act’s provisions boundary of the Flower Garden Banks environmental harm from the selected limiting the recovery of antitrust National Marine Sanctuary (i.e., the alternative at the lease sale stage are plaintiffs to actual damages under boundary as of the publication of the being adopted through application of specified circumstances. Specifically, WPA 248 Supplemental EIS). these stipulations. The stipulations will Arkena, Paris, FRANCE; DirectOut All unleased whole and partial blocks be added as lease terms where GmbH, Mittweida, GERMANY; in the WPA that BOEM will offer for applicable and will therefore be Macnica, Inc., Solana Beach, CA; MNC leasing in proposed WPA Lease Sale 248 enforceable as part of the lease. Software, Inc., San Diego, CA; MOG are listed in the document ‘‘List of Appendix A of the WPA 246 Technologies, SA, Maia, PORTUGAL; Blocks Available for Leasing,’’ which is Supplemental EIS, which is Real-Time Innovations, Sunnyvale, CA; included in the Final Notice of Sale for incorporated by reference into the WPA Ross Video, Ottawa, Ontario, CANADA; WPA Lease Sale 248 being published 248 Supplemental EIS, provides a list Sebastien Cre`me (individual member), contemporaneously. The proposed WPA and description of standard post-lease Paris, FRANCE; and Carl Fleischhauer lease sale area encompasses nearly all of mitigating measures that may be (individual member), Port Republic,
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MD, have been added as parties to this for the State University of New York, ‘‘Defendants’’) alleging that ValueAct’s venture. acting on behalf of the State University acquisitions of voting securities of Also, MOG Solutions SA, Maia, of New York Polytechnic Institute, Halliburton Company and Baker Hughes PORTUGAL; and National Albany, NY; The Trustees of Columbia Incorporated violated Section 7A of the TeleConsultants, Glendale, CA, have University in the City of New York, New Clayton Act, 15 U.S.C. 18a, commonly withdrawn as parties to this venture. York, NY; The Regents of the University known as the Hart-Scott-Rodino No other changes have been made in of California, on behalf of its Santa Antitrust Improvement Act of 1976 (the either the membership or planned Barbara campus, Santa Barbara, CA; ‘‘HSR Act’’). The proposed Final activity of the group research project. Massachusetts Institute of Technology, Judgment requires the Defendants to pay Membership in this group research Cambridge, MA; Arizona Board of a civil penalty of $11,000,000 and project remains open, and Advanced Regents on behalf of the University of further prohibits Defendants from Media Workflow Association, Inc. Arizona, Tucson, AZ; The Rector and engaging in conduct of the sort alleged intends to file additional written Visitors of the University of Virginia, in the Complaint, in violation of the notifications disclosing all changes in Charlottesville, VA; and SunEdison HSR Act. membership. Semiconductor Limited, St. Peters, MO. Copies of the Complaint, proposed On March 28, 2000, Advanced Media The general area of AIM Photonics’ Final Judgment, and Competitive Impact Workflow Association, Inc. filed its planned activity is research, Statement are available for inspection original notification pursuant to section development and demonstration in the on the Antitrust Division’s Web site at 6(a) of the Act. The Department of manufacture of integrated photonics. http://www.justice.gov/atr and at the Justice published a notice in the Federal AIM Photonics seeks to (1) advance Office of the Clerk of the United States Register pursuant to section 6(b) of the integrated photonic circuit District Court for the Northern District Act on June 29, 2000 (65 FR 40127). manufacturing technology development of California. Copies of these materials The last notification was filed with while simultaneously providing access may be obtained from the Antitrust the Department on March 23, 2016. A to state-of-the-art fabrication, packaging, Division upon request and payment of notice was published in the Federal and testing capabilities for commercial the copying fee set by Department of Register pursuant to section 6(b) of the enterprises, academia and the Justice regulations. Act on April 18, 2016 (81 FR 22633). government; (2) create an adaptive Public comment is invited within 60 integrated photonic circuit workforce Patricia A. Brink, days of the date of this notice. Such capable of meeting industry needs and comments, including the name of the Director of Civil Enforcement, Antitrust thus further increasing domestic Division. submitter, and responses thereto, will be competitiveness; and (3) meet [FR Doc. 2016–17434 Filed 7–22–16; 8:45 am] posted on the Antitrust Division’s Web participating commercial, defense and site, filed with the Court, and, under BILLING CODE P civilian agency needs in this burgeoning certain circumstances, published in the technology area. AIM Photonics became Federal Register. Comments should be the sixth Institute for Manufacturing DEPARTMENT OF JUSTICE directed to Kathleen S. O’Neill, Chief, Innovation. Its objective is to increase Transportation, Energy & Agriculture Antitrust Division manufacturing in the United States. Section, Antitrust Division, Department Patricia A. Brink, of Justice, 450 Fifth Street NW., Suite Notice Pursuant to the National Director of Civil Enforcement, Antitrust 8000, Washington, DC 20530 Cooperative Research and Production Division. (telephone: 202–307–2931). Act of 1993—Integrated Photonics /s/ lllllllllllllllll Institute for Manufacturing Innovation [FR Doc. 2016–17435 Filed 7–22–16; 8:45 am] Operating Under the Name of the BILLING CODE P Patricia A. Brink, American Institute for Manufacturing Director of Civil Enforcement. Integrated Photonics DEPARTMENT OF JUSTICE Kathleen S. O’Neill (PA Bar No. 82785) Joseph Chandra Mazumdar (WI Bar No. Notice is hereby given that, on June Antitrust Division 1030967) 16, 2016, pursuant to Section 6(a) of the Brian E. Hanna (VA Bar No. 80439) National Cooperative Research and United States v. VA Partners I, LLC, Robert A. Lepore (AZ Bar No. 028137) Production Act of 1993, 15 U.S.C. 4301 ValueAct Capital Master Fund, LP, and Tai Milder (CABN 267070) et seq. (‘‘the Act’’), the Integrated ValueAct Co-Invest International, LP; United States Department of Justice, Photonics Institute for Manufacturing Proposed Final Judgment and Antitrust Division Innovation operating under the name of Competitive Impact Statement 450 Fifth Street, NW., Suite 8000 the American Institute for Washington, DC 20530 Manufacturing Integrated Photonics Notice is hereby given pursuant to the Telephone: (202) 307–2931 (‘‘AIM Photonics’’), has filed written Antitrust Procedures and Penalties Act, Fax: (202) 307–2874 notifications simultaneously with the 15 U.S.C. 16(b)–(h), that a proposed Email: [email protected] Attorney General and the Federal Trade Final Judgment, Stipulation, and Brian J. Stretch (CABN 163973) Commission disclosing (1) the identities Competitive Impact Statement have United States Attorney of the parties to the venture and (2) the been filed with the United States [Additional counsel listed on signature nature and objectives of the venture. District Court for the Northern District page] The notifications were filed for the of California in United States of Attorneys for Plaintiff United States of purpose of invoking the Act’s provisions America v. VA Partners I, LLC, et al., America limiting the recovery of antitrust Civil Action No. 16-cv-01672. On April plaintiffs to actual damages under 4, 2016, the United States filed a United States District Court for the specified circumstances. Complaint against VA Partners I, LLC, Northern District of California San Pursuant to Section 6(b) of the Act, ValueAct Capital Master Fund, L.P. and Francisco Division the identities of the parties to the ValueAct Co-Invest International, L.P. United States of America, Plaintiff, v. VA venture are: The Research Foundation (collectively ‘‘ValueAct’’ or Partners I, LLC, Valueact Capital Master
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Fund, L.P., Valueact Co-Invest International, that purchasing a stake in each of these affecting commerce, within the meaning L.P., Defendants. firms would allow it to ‘‘be a strong of Section 1 of the Clayton Act, 15 Case No.: 16-cv-01672 advocate for the deal to close,’’ which U.S.C. 12, and Section 7A(a)(1) of the Judge: William Alsup would in turn ‘‘[i]ncrease probability of Clayton Act, 15 U.S.C. 18a(a)(1). Filed: 04/04/2016 deal happening.’’ If the deal 9. Venue is properly based in this Complaint encountered ‘‘regulatory issues,’’ District under Section 12 of the Clayton ValueAct ‘‘would be well positioned as The United States of America, acting Act, 15 U.S.C. 22, and under 28 U.S.C. an owner of both companies to help under the direction of the Attorney 1391(b)(2), (c)(2). Each of the develop the new terms.’’ ValueAct General of the United States, brings this Defendants transacts or has transacted executives also discussed internally a civil action to obtain civil penalties and business in this district and has its back-up plan to ‘‘sell at least some of equitable relief against the Defendants principal place of business here. Baker’s pieces’’ if the deal were blocked (collectively, ‘‘ValueAct’’) for failing to or abandoned. III. Intradistrict Assignment comply with the premerger notification 4. ValueAct’s purchases of and waiting period requirements of the Halliburton and Baker Hughes shares 10. Assignment to the San Francisco Hart-Scott-Rodino Antitrust did not qualify for the narrow Division is proper because this action Improvements Act of 1976 (‘‘HSR Act’’), exemption from the requirements of the arose primarily in San Francisco and alleges as follows: HSR Act for acquisitions made solely for County. Many of the events that gave rise to the claims occurred in San I. Introduction the purpose of investment. ValueAct planned from the outset to take steps to Francisco, and Defendants’ headquarters 1. The Hart-Scott-Rodino Act, 15 influence the business decisions of both and principal places of business were U.S.C. 18a, is an essential part of companies, and met frequently with during the relevant events, and continue modern antitrust enforcement. It executives of both companies to execute to be, located in San Francisco. requires purchasers of voting securities those plans. IV. The Defendants in excess of a certain value to notify the 5. These HSR Act violations allowed Department of Justice and the Federal ValueAct to become one of the largest 11. This case arises from acquisitions Trade Commission and to observe a shareholders of both Halliburton and of stock over several months by two waiting period before consummating the Baker Hughes, without providing the investment funds—ValueAct Master transaction. These obligations extend to government its statutory right to notice Capital Fund, L.P. (‘‘Master Fund’’) and acquisitions of minority interests. One and prior review of the stock purchases. ValueAct Co-Invest International, L.P. limited exemption to these obligations ValueAct established these positions as (‘‘Co-Invest Fund’’). Though separate applies if the purchaser’s holdings Halliburton and Baker Hughes were entities for purposes of the HSR Act, constitute less than ten percent of the being investigated for agreeing to a both funds have the same general stock of the company and the merger that threatens to substantially partner—VA Partners I, LLC (‘‘VA acquisition is ‘‘solely for the purpose of lessen competition in numerous Partners’’). Master Fund and Co-Invest investment’’—that is, the purchaser has markets. ValueAct intended to use its Fund are organized under the laws of no intention of participating in the position as a major shareholder of these the British Virgin Islands, and VA company’s business decisions. companies to obtain access to Partners is organized under the laws of 2. ValueAct promotes itself as having management, to learn information about Delaware. Master Fund, Co-Invest Fund, a strategy of ‘‘active, constructive the merger and the companies’ strategies and VA Partners (collectively, involvement’’ in the management of the in private conversations with senior ‘‘ValueAct’’ or ‘‘Defendants’’) all have companies in which it invests. This case executives, to influence those the same principal office and place of concerns recent acquisitions by two executives to improve the chances that business in San Francisco, California. ValueAct investment funds of over $2.5 the merger would be completed, and to 12. ValueAct is well known as an billion of voting securities of influence other business decisions Halliburton Company and Baker Hughes activist investor. In contrast to other whether or not the merger went forward. large funds that focus on passive Incorporated. Halliburton and Baker 6. The Court should assess a civil investment strategies to generate Hughes are head-to-head competitors penalty of at least $19 million to address returns, ValueAct’s Web site explains and two of the largest providers of ValueAct’s violations of the HSR Act, that it pursues a strategy of ‘‘active, oilfield products and services in the and should restrain ValueAct from constructive involvement’’ in the world. On November 17, 2014, further violations. Halliburton and Baker Hughes management of the companies in which announced their intent to merge. Their II. Jurisdiction and Venue it invests. The Web site further states, proposed merger is the subject of an 7. This Complaint is filed and these ‘‘The goal in each investment is to work ongoing antitrust review in the United proceedings are instituted under Section constructively with management and/or States and several other countries. 7A of the Clayton Act, 15 U.S.C. 18a, the company’s board to implement a 3. ValueAct began acquiring added by Title II of the HSR Act, to strategy or strategies that maximize significant holdings of the two recover civil penalties and equitable returns for all shareholders.’’ companies on the heels of the relief for violations of that section. 13. ValueAct tracks its ‘‘activism’’ in Halliburton/Baker Hughes merger 8. This Court has jurisdiction over the these investments by various metrics, announcement. From the beginning, Defendants and over the subject matter such as success in changing executive ValueAct anticipated influencing the of this action pursuant to Section 7A(g) compensation, and touts these statistics business decisions of the companies as of the Clayton Act, 15 U.S.C. 18a(g), and in its presentations to potential the merger process unfolded. ValueAct pursuant to 28 U.S.C. 1331, 1337(a), investors as illustrated by the following sent memoranda to its investors 1345 and 1355. Each of the Defendants slide from ValueAct’s June 2015 outlining this strategy and explaining is engaged in commerce, or in activities presentation:
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14. In presentations, ValueAct has agencies with an opportunity to use ValueAct’s ownership position to explained that it likes ‘‘disciplined investigate and to seek an injunction to influence management of each firm as oligopolies’’ and looks to invest in prevent the consummation of necessary to increase the probability of businesses in ‘‘[o]ligopolistic markets, anticompetitive transactions. the deal being completed. ValueAct’s high barriers-to-entry.’’ 17. The HSR Act contains certain Master Fund crossed the applicable HSR 15. ValueAct funds have previously limited exemptions to the notification Act reporting thresholds for Baker violated the HSR Act by acquiring and waiting period requirements. The Hughes and Halliburton on December 1 voting securities without making the acquirer of voting securities has the and December 5, 2014, respectively, and required notifications. In 2003, burden of showing eligibility for an Master Fund continued to build up its ValueAct Capital Partners, L.P. filed exemption. One such exemption applies position as its executives discussed corrective notifications for three prior narrowly to acquisitions made ‘‘solely strategy. These discussions culminated acquisitions of voting securities. for the purpose of investment’’ if the in the drafting of memoranda that ValueAct outlined steps it would take to voting securities held do not exceed ten ValueAct sent to its investors on January ensure future compliance with the HSR percent of the outstanding voting 16, 2015. These memoranda—one about Act. No enforcement action was taken at securities of the issuer. 15 U.S.C. Baker Hughes and one about that time. Master Fund then failed to 18a(c)(9). The regulations implementing Halliburton—explained ValueAct’s make required filings with respect to the Act explain that, to qualify for this decision to acquire stakes in these three acquisitions that it made in 2005. exemption, the acquiring party must competitors through its Master Fund, ValueAct agreed to pay a $1.1 million have ‘‘no intention of participating in and offered investors the opportunity to civil penalty to settle an HSR Act the formulation, determination, or increase their stakes in these firms enforcement action based on these direction of the basic business decisions through additional share purchases by violations. of the issuer.’’ 16 CFR 801.1(i)(1). ValueAct’s Co-Invest Fund. V. Background B. ValueAct’s Initial Investment 20. These memoranda and other Decision and Strategy contemporaneous documents show that A. The Hart-Scott-Rodino Antitrust 18. After Halliburton and Baker ValueAct’s most senior executives Improvements Act Hughes announced their intent to merge planned from the outset to play an 16. The HSR Act requires parties to on November 17, 2014, ValueAct began active role at Halliburton and Baker file a notification with the Federal Trade purchasing stock in each company Hughes. The lead ValueAct partner Commission and the Department of through its Master Fund and Co-Invest responsible for the Baker Hughes Justice and to observe a waiting period Fund. ValueAct continued to make investment internally circulated a draft before consummating acquisitions of purchases in both companies for several of an investor memorandum explaining voting securities or assets that exceed months, eventually acquiring over $2.5 that ‘‘our activist approach limits our certain value thresholds. These billion in securities of the two downside in the unlikely case that the requirements give the antitrust companies combined. merger does not close.’’ The draft enforcement agencies prior notice of, 19. As ValueAct was acquiring stock further noted that if the merger were not and information about, proposed in these two companies in December completed, ValueAct ‘‘would likely seek transactions. The waiting period also 2014 and early January 2015, its to take a more active role in overseeing provides the antitrust enforcement executives were developing strategies to the company.’’ ValueAct’s CEO then
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requested an insertion into the Pharmaceuticals] comp plan in from contact and sharing that they plan to be memorandum highlighting that outside the board room?’’ The CEO large shareholders of BHI.’’ ValueAct’s ‘‘[a]ctive role’’ is an responded ‘‘Yes. Good idea.’’ (ValueAct 28. On January 16, 2015, ValueAct additional reason to invest in both had recently convinced management to filed a Beneficial Ownership Report companies. change the executive compensation plan (Schedule 13D) with the Securities and 21. Although the memoranda at another of its investments, Valeant Exchange Commission publicly ultimately shared with investors Pharmaceuticals.) disclosing its substantial stake in Baker watered down the words used to 25. ValueAct also intended to play a Hughes and reporting that it might describe ValueAct’s activist strategy, role in Halliburton’s efforts to integrate discuss ‘‘competitive and strategic they still emphasized that purchasing a the two firms. ValueAct told its matters’’ with Baker Hughes stake in Halliburton and Baker Hughes investors that its stake in Halliburton management, and might ‘‘propos[e] would ‘‘increase probability of deal ‘‘helps to further enhance our changes in [Baker Hughes’s] happening’’ and would allow ValueAct relationship with management and the operations.’’ Before submitting the to be ‘‘a strong advocate for the deal to board of directors as they work to Schedule 13D, ValueAct’s CEO notified close.’’ ValueAct identified this as one complete the merger and integrate the Halliburton’s CEO of the impending of three ‘‘key considerations’’ business into Halliburton’s existing filing on Baker Hughes, explaining that supporting its investment decision. A operations.’’ the filing ‘‘gives us the flexibility to contemporaneous email among engage with the company [Baker C. ValueAct’s Efforts To Influence the ValueAct partners remarked that if Hughes] on all issues.’’ Later the same Management of Both Companies Halliburton’s shareholders threatened to day, ValueAct’s CEO emailed vote against the deal, ValueAct’s 26. Consistent with its investment Halliburton’s CEO a copy of its ‘‘position in HAL should be meaningful strategy of ‘‘active, constructive investment memoranda for both enough to have a substantial role in involvement,’’ ValueAct established a Halliburton and Baker Hughes. those conversations.’’ direct line to senior management at both 29. By February, after ValueAct had 22. ValueAct also intended to help Halliburton and Baker Hughes and met completed its outreach to investors restructure the merger if it hit with them frequently from the time it seeking capital for additional share roadblocks. On December 16, 2014, started acquiring stock. From December purchases, ValueAct began acquiring ValueAct’s CEO emailed his partners: 2014 through January 2016, ValueAct stock in Halliburton and Baker Hughes ‘‘if we own both we can drive new terms met in person or had teleconferences through Co-Invest Fund. On March 10, to get the deal done if weird [expletive] more than fifteen times with senior 2015, Co-Invest Fund’s holdings in is happening.’’ ValueAct also expressed management of Halliburton or Baker Halliburton crossed the applicable HSR this view in its memos to investors: ‘‘In Hughes, including meeting multiple Act reporting threshold. the event of further fundamental times with the CEOs of both companies. 30. Also in early March, ValueAct dislocation or regulatory issues, it is ValueAct partners also exchanged a contacted Halliburton to offer assistance possible the deal would need to be number of emails with management at in advance of the shareholder vote on restructured and we believe ValueAct both firms about the merger and the the merger. ValueAct offered Capital would be well positioned as an companies’ respective operations. Halliburton ‘‘to speak with any of owner of both companies to help 27. ValueAct reached out to Baker [Halliburton’s] top shareholders about develop the new terms.’’ Hughes immediately after it began [ValueAct’s] view of the merger prior to 23. In a December 2014 internal purchasing shares. On December 1, the vote.’’ Halliburton responded that it email, a ValueAct partner observed that 2014, the day Master Fund’s holdings would let ValueAct know if ValueAct’s ‘‘[i]f the deal failed, the back-up plan crossed the HSR Act threshold for Baker help became necessary. would seem to be to sell at least some Hughes, a ValueAct partner told a Baker 31. In May 2015, ValueAct further of Baker’s pieces, and we think that we Hughes executive that ValueAct was engaged with Halliburton on the could get up to 12x EBITDA for just 2 positive on the merger but also liked company’s plans for post-merger of BHI’s businesses—artificial lift and ‘‘that 20% of [Baker Hughes’s] revenue integration. On May 13, ValueAct met chemicals.’’ ValueAct’s memoranda to comes from non-capital intensive with Halliburton’s CEO to discuss investors noted, ‘‘Recent transactions in business lines which could command a actions that Halliburton could take in an each of those industries [specialty big multiple if sold.’’ A few days later, attempt to achieve its target merger chemicals and artificial lift] suggest that ValueAct’s CEO met in person with the synergies. On May 27, a ValueAct these businesses are worth north of 10 CFO of Baker Hughes. According to partner called Halliburton’s Chief times EBITDA.’’ Moreover, the Baker Baker Hughes’s notes of the meeting, Integration Officer to recommend a firm Hughes memorandum explained that ValueAct’s CEO ‘‘highlighted that it was for real estate integration services. In a there are ‘‘numerous levers for the critical that BHI continued focused [sic] subsequent email exchange, another company to pull to drive margin on many of these improvement ValueAct partner emphasized the need expansion,’’ and identified Baker opportunities despite the acquisition. to engage on these issues at the Hughes’s pressure pumping business as He specifically emphasized with graphs executive level, and stated that a good candidate for margin the largest gap/opportunities he saw.’’ Halliburton’s plan was ‘‘a traditional improvement. With respect to the gap in Baker approach likely to leave value on the 24. Regardless of how the merger Hughes’s North American margins, table.’’ Instead, the partner identified process unfolded, ValueAct intended to ValueAct’s CEO stated, ‘‘Looking to alternative ways the real estate firm influence the business decisions of both learn with BHI on how to close that could work with Halliburton to help companies. For example, on December GAP [sic].’’ ValueAct’s CEO also achieve the synergy goals. 5, 2014, the day Master Fund’s holdings discussed other areas ‘‘that he thought 32. ValueAct also followed through in Halliburton crossed the HSR Act BHI should continue to focus on as on its idea for changing Halliburton’s threshold, a ValueAct partner wrote an there was a lot of improvement executive compensation plan. On July email to ValueAct’s CEO about opportunity.’’ According to the notes, 14, 2015, ValueAct contacted Halliburton: ‘‘Wonder if it would be the meeting ended with ValueAct’s CEO Halliburton’s CEO to schedule a meeting possible to get the VRX [Valeant ‘‘stating that they would remain in to discuss executive compensation. At
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the meeting, which ultimately occurred Halliburton’s CEO, advocating that each obligated to comply with its in September, ValueAct delivered a Halliburton pursue selective requirements. thirty-five-page presentation detailing acquisitions of Baker Hughes’s A. Count 1: Master Fund’s Acquisition ValueAct’s preferred approach, production chemicals and artificial lift of Halliburton commenting on Halliburton’s current businesses. According to Halliburton’s plan, and proposing specific changes. notes of the call, ValueAct suggested 42. The HSR Act and applicable implementing regulations required that D. Consistent With Its Initial Plans, that Halliburton should offer a substantial sum to acquire these Master Fund file a notification and ValueAct Worked To Restructure the report form with the antitrust Merger or To Sell Parts of Baker Hughes businesses and settle the $3.5 billion merger break-up fee at the same time. enforcement agencies and observe a 33. ValueAct carefully monitored the 37. During this conversation with the waiting period before acquiring any status of the antitrust review process CEO of Halliburton, ValueAct shared voting securities in Halliburton that and intended to intervene with the Baker Hughes’s plans if the merger would result in Master Fund holding an management of each firm as necessary could not close. According to aggregate total amount of voting to increase the probability of the deal Halliburton’s notes of the call, ValueAct securities in excess of the $50 million being completed. ValueAct met with stated that if the merger could not be threshold, as adjusted ($75.9 million in Baker Hughes’s CEO in May 2015 and consummated, Baker Hughes’s CEO December 2015, and $76.3 million according to ValueAct’s notes of that intended to ‘‘run the company like he beginning in February 2016). meeting, Baker Hughes’s CEO ‘‘seemed did before.’’ Halliburton’s CEO then 43. On or about December 4, 2014, pretty worried about anti-trust, and asked whether Baker Hughes’s CEO was Master Fund began purchasing implied odds deal goes through 70% or ‘‘listening to VA.’’ A ValueAct partner Halliburton voting securities. On or lower in his mind.’’ ValueAct then replied that Baker Hughes’s CEO about December 5, 2014, Master Fund’s continued to push management of both ‘‘realize [sic] can go to his board aggregate value of Halliburton voting companies to preserve the deal or, if directly.’’ ValueAct also asked securities exceeded the $75.9 million these efforts failed, to sell off pieces of Halliburton’s CEO if there was threshold. Master Fund continued to Baker Hughes. purchase Halliburton voting securities 34. On August 31, 2015, ValueAct met ‘‘anything we [ValueAct] can do to be helpful,’’ and explicitly offered to until June 30, 2015, by which time with Baker Hughes’s CEO ‘‘to plant the Master Fund’s aggregate value of seed to seek alternative options with ‘‘apply pressure to BHI CEO regarding unhappiness if he continues to run co. Halliburton voting securities exceeded other buyers if the deal falls through.’’ $1.4 billion. In its initial investment analysis, the if deal does not go through.’’ In short, ValueAct offered to use its position as 44. Master Fund failed to file the ValueAct partners had discussed selling required notification or to observe the individual Baker Hughes businesses as a shareholder to pressure Baker Hughes’s management to change its required waiting period. a back-up plan if the merger failed. 45. On or about January 27, 2016, business strategy in ways that could ValueAct presented an updated analysis Master Fund had sold a sufficient affect Baker Hughes’s competitive to argue this case to Baker Hughes. quantity of voting securities of future. ValueAct also proposed restructuring Halliburton such that its holdings were the deal with Halliburton, suggesting 38. ValueAct and Halliburton’s no longer in excess of $76.3 million. that Baker Hughes should sell its willingness to discuss the competitive 46. Master Fund was in violation of pressure pumping, artificial lift, and future of Baker Hughes in the absence the requirements of the HSR Act related specialty chemical businesses to of a merger is further confirmed by to its purchase of Halliburton voting Halliburton at a premium in lieu of notes contained in ValueAct’s files. securities each day beginning December receiving the merger termination fee. These notes list ‘‘3 options that Lazard 5, 2014, and ending on or about January 35. According to ValueAct notes from [presumably Halliburton’s CEO, David 27, 2016. the meeting, Baker Hughes’s CEO was Lesar] discussed’’ with respect to Baker ‘‘very committed to running BHI stand- Hughes. One of those options was B. Count 2: Co-Invest Fund’s Acquisition alone if the deal fails and did not seem ‘‘Cripple a competitor.’’ of Halliburton to entertain the idea of shopping the 39. On November 5, 2015, ValueAct 47. The HSR Act and applicable business piecemeal to other buyers.’’ made a detailed fifty-five page implementing regulations required that The notes explain that ValueAct agreed presentation to Baker Hughes’s CEO Co-Invest Fund file a notification and that the Baker Hughes CEO’s plan to proposing operational and strategic report form with the antitrust ‘‘focus on technology-based product changes to the company. The same day, enforcement agencies and observe a lines, and grow the business organically ValueAct lobbied Halliburton’s senior waiting period before acquiring any in these areas seems like the right areas management to pursue alternative ways voting securities in Halliburton that to focus for the stand-alone company.’’ to get the deal done. would result in Co-Invest Fund holding But this plan was not what the ValueAct VI. Violations Alleged an aggregate total amount of voting executives hoped for: ‘‘the problem is securities in excess of the $50 million that this story seems like a 4–5 year 40. Plaintiff alleges and incorporates threshold, as adjusted ($76.3 million period with the stock not generating a paragraphs 1 through 39 as if set forth beginning in February 2016). great return over that period.’’ fully herein. 48. On or about February 24, 2015, According to Baker Hughes’s notes of 41. The HSR Act provides that any Co-Invest Fund began purchasing the meeting, the ValueAct executives person, or any officer, director, or Halliburton voting securities. On or registered disappointment with Baker partner thereof, who fails to comply about March 10, 2015, Co-Invest Fund’s Hughes’s CEO, and informed him that with any provision of the HSR Act is aggregate value of Halliburton voting Halliburton and Baker Hughes were liable to the United States for a civil securities exceeded the $76.3 million ‘‘the only investment ValueAct had penalty for each day during which such threshold. Co-Invest Fund continued to where they did not have board seats.’’ person is in violation. Master Fund and purchase Halliburton voting securities 36. On September 18, 2015, ValueAct Co-Invest Fund are each considered a until March 12, 2015, by which time Co- pitched its restructuring plan to separate person under the Act and are Invest Fund’s aggregate value of
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Halliburton voting securities exceeded observing a waiting period, violated the Telephone: (415) 436–7200 $138 million. HSR Act; Email: [email protected] 49. Co-Invest Fund failed to file the (c) That the Court adjudge and decree Kathleen S. O’Neill required notification or observe the that Defendant Master Fund’s Joseph Chandra Mazumdar required waiting period. acquisitions of voting securities of Baker Brian E. Hanna 50. On or about January 22, 2016, Co- Hughes, without having filed a Robert A. Lepore Invest Fund had sold a sufficient notification and report form and U.S. Department of Justice quantity of voting securities of observing a waiting period, violated the Antitrust Division Halliburton such that its holdings were HSR Act; 450 Fifth Street, NW, Suite 8000 no longer in excess of $76.3 million. (d) That the Court order Defendants to Washington, DC 20530 51. Co-Invest Fund was in violation of pay to the United States an appropriate Tel: (202) 307–2931 the requirements of the HSR Act related civil penalty as provided by the HSR Fax: (202) 307–2874 to its purchase of Halliburton voting Act, 15 U.S.C. § 18a(g)(1), the Debt Email: [email protected] securities each day beginning March 10, Collection Improvement Act of 1996, Email: [email protected] 2015, and ending on or about January Pub. L. 104–134, § 31001(s) (amending Email: [email protected] 22, 2016. the Federal Civil Penalties Inflation Email: [email protected] Adjustment Act of 1990, 28 U.S.C. Tai Milder C. Count 3: Master Fund’s Acquisition of § 2461 note), and Federal Trade U.S. Department of Justice Baker Hughes Commission Rule 1.98, 16 CFR § 1.98, Antitrust Division 52. The HSR Act and applicable 74 Fed. Reg. 858 (Jan. 9, 2009); 450 Golden Avenue implementing regulations required that (e) That the Court enjoin Defendants Box 36046, room 10–0101 Master Fund file a notification and from any future violations of the HSR Tel: (415) 934–5300 report form with the antitrust Act; Fax: (415) 934–5399 enforcement agencies and observe a (f) That the Court order such other Email: [email protected] waiting period before acquiring any and further relief as the Court may deem Attorneys for Plaintiff United States of voting securities in Baker Hughes that just and proper; and, America would result in Master Fund holding an (g) That the Court award the Plaintiff United States District Court for the aggregate total amount of voting its costs of this suit. Northern District of California San securities in excess of the $50 million Dated: Francisco Division threshold, as adjusted ($75.9 million in Respectfully submitted, December 2015, and $76.3 million UNITED STATES OF AMERICA, Plaintiff, beginning in February 2016). For the Plaintiff United States of America: v. VA Partners I, LLC, et al., Defendants. 53. On or about November 28, 2014, /s/ lllllllllllllllllll Case No.: 16–cv–01672 Master Fund began purchasing Baker Judge: William Alsup William J. Baer, Filed: 07/12/2016 Hughes voting securities. On or about Assistant Attorney General. December 1, 2014, Master Fund’s /s/ lllllllllllllllllll COMPETITIVE IMPACT STATEMENT aggregate value of Baker Hughes voting David I. Gelfand, The United States, pursuant to the securities exceeded the $75.9 million Deputy Assistant Attorney General. Antitrust Procedures and Penalties Act threshold. Master Fund continued to /s/ lllllllllllllllllll (‘‘APPA’’), 15 U.S.C. § 16(b)–(h), files purchase Baker Hughes voting securities Patricia A. Brink (Cabn 144499), this Competitive Impact Statement to set until January 15, 2015, by which time Director of Civil Enforcement. forth the information necessary to Master Fund’s aggregate value of Baker /s/ lllllllllllllllllll enable the Court and the public to Hughes voting securities exceeded $1.2 Kathleen S. O’Neill, evaluate the proposed Final Judgment billion. Chief, Transportation, Energy, and that would terminate this civil antitrust 54. Master Fund failed to file the Agriculture Section. proceeding. required notification or to observe the /s/ lllllllllllllllllll required waiting period. I. Nature and Purpose of this Robert A. Lepore, Proceeding 55. Master Fund was in violation of Assistant Chief, Transportation, Energy, and the requirements of the HSR Act related Agriculture Section. On April 4, 2016, the United States to its purchase of Baker Hughes voting /s/ lllllllllllllllllll filed a Complaint against VA Partners I, securities each day beginning on Joseph Chandra Mazumdar, Brian E. Hanna, LLC, (‘‘VA Partners I’’), ValueAct December 1, 2014, and remains in Tai Milder, Trial Attorneys. Capital Master Fund, L.P. (‘‘Master violation of the HSR Act to the present. United States Department of Justice Fund’’), and ValueAct Co-Invest VII. Request For Relief Antitrust Division International, L.P. (‘‘Co-Invest Fund’’) 450 Fifth Street, NW (collectively, ‘‘ValueAct’’ or Wherefore, Plaintiff requests: Suite 8000 ‘‘Defendants’’), related to Master Fund’s (a) That the Court adjudge and decree Washington, DC 20530 and Co-Invest Fund’s acquisition of that Defendant Master Fund’s Telephone: (202) 307–2931 voting securities of Halliburton Co. acquisitions of voting securities of [email protected] (‘‘Halliburton’’) and Baker Hughes Halliburton, without having filed a /s/ lllllllllllllllllll Incorporated (‘‘Baker Hughes’’) in 2014 notification and report form and Brian J. Stretch (Cabn 163973), United States and 2015. observing a waiting period, violated the Attorney. The Complaint alleges that ValueAct HSR Act; By Jonathan U. Lee (Cabn 148792), violated Section 7A of the Clayton Act, Acting Chief, Civil Division (b) That the Court adjudge and decree Assistant U.S. Attorney Office of the United 15 U.S.C. 18a, commonly known as the that Defendant Co-Invest Fund’s States Attorney Hart-Scott-Rodino Antitrust acquisitions of voting securities of Northern District of California Improvements Act of 1976 (the ‘‘HSR Halliburton, without having filed a 450 Golden Gate Avenue Act’’). The HSR Act states that ‘‘no notification and report form and San Francisco, CA 94102 person shall acquire, directly or
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indirectly, any voting securities of any it intended to participate in the business ValueAct entities have previously person’’ exceeding certain thresholds decisions of both companies. violated the HSR Act by acquiring until that person has filed pre- The Complaint seeks a ruling that the voting securities without making the acquisition notification and report forms Defendants’ acquisitions of voting required notifications. In 2003, with the Department of Justice and the securities of Halliburton and Baker ValueAct Capital Partners, L.P. filed Federal Trade Commission (collectively, Hughes, without filing and observing corrective notifications for three prior the ‘‘agencies’’) and the post-filing the mandatory waiting period, violated acquisitions of voting securities. waiting period has expired. Id. A key the HSR Act. The Complaint asks the ValueAct outlined steps it would take to purpose of the notification and waiting Court to issue an appropriate injunction ensure future compliance with the HSR period is to protect consumers and and order the Defendants to pay an Act. No enforcement action was taken at competition from potentially appropriate civil penalty to the United that time. Master Fund then failed to anticompetitive transactions by States. make required filings with respect to providing the agencies an opportunity On July 12, 2016, the United States three acquisitions that it made in 2005. ValueAct Capital Partners, L.P. agreed to to conduct an antitrust review of filed a Stipulation and proposed Final pay a $1.1 million civil penalty to settle proposed transactions before they are Judgment that eliminates the need for a an HSR Act enforcement action based consummated. trial in this case. The proposed Final on these violations. This case arises because ValueAct, an Judgment is designed to prevent and investment manager that is well known restrain Defendants’ HSR Act violations. B. The Defendants’ Unlawful Conduct for actively involving itself in the Under the proposed Final Judgment, The Complaint in this case alleges management of the companies in which which is explained more fully below, that ValueAct violated the HSR Act in it invests, made substantial purchases of Defendants must pay a civil penalty of connection with acquisitions of voting stock in two direct competitors with the $11 million. Further, Defendants are securities of Halliburton and Baker intent to participate in those companies’ prohibited from engaging in future Hughes in 2014 and 2015. In making business decisions, without complying conduct of the sort alleged in the these acquisitions, ValueAct improperly with the notification and waiting period Complaint. relied on the limited investment-only requirements of the HSR Act. Through The United States and the Defendants exemption from HSR filing these purchases, ValueAct have stipulated that the proposed Final requirements despite the fact that simultaneously became one of the Judgment may be entered after ValueAct intended from the outset to largest shareholders of both Halliburton compliance with the APPA, unless the play an ‘‘active role’’ at both Halliburton and Baker Hughes. ValueAct established United States first withdraws its and Baker Hughes. ValueAct’s failure to these positions as Halliburton and Baker consent. Entry of the proposed Final file the necessary notifications Hughes—the second and third largest Judgment would terminate this case, prevented the Department from timely providers of oilfield services in the except that the Court would retain reviewing ValueAct’s stock acquisitions, world—were being investigated for jurisdiction to construe, modify, or which risked harming competition agreeing to a merger that threatened to enforce the provisions of the proposed given that they resulted in ValueAct’s substantially lessen competition in over Final Judgment and punish violations becoming one of the largest twenty product markets in the United thereof. shareholders in two direct competitors States. After the United States that were pursuing an anticompetitive II. Description of the Events Giving Rise challenged that merger on April 6, 2016, merger. Halliburton and Baker Hughes to the Alleged Violations of the The Complaint alleges that ValueAct abandoned their anticompetitive plan to Antitrust Laws committed three distinct violations of merge. ValueAct’s failure to comply A. The Defendants and the Acquisitions the HSR Act. First, Defendant Master with the HSR Act prevented the of Halliburton and Baker Hughes Voting Fund acquired voting securities of agencies from reviewing ValueAct’s Securities Halliburton in excess of the HSR Act’s acquisitions in advance, compromising thresholds without complying with the the agencies’ ability to protect Master Fund and Co-Invest Fund are notification and waiting period competition and consumers. offshore funds organized under the laws requirements. Second, Defendant Co- The Complaint alleges that the of the British Virgin Islands, with each Invest Fund acquired voting securities Defendants could not rely on the HSR having a principal place of business in of Halliburton in excess of the HSR Act’s limited exemption for acquisitions San Francisco, California. VA Partners I Act’s thresholds without complying made ‘‘solely for the purpose of is the general partner of the Defendant with the notification and waiting period investment’’ (the ‘‘investment-only Funds. VA Partners I is a limited requirements. Third, Defendant Master exemption’’). 15 U.S.C. 18a(c)(9) liability company organized under the Fund acquired voting securities of Baker exempts ‘‘acquisitions, solely for the laws of Delaware, with its principal Hughes in excess of the HSR Act’s purpose of investment, of voting place of business in San Francisco, thresholds without complying with the securities, if, as a result of such California. notification and waiting period acquisition, the securities acquired or ValueAct is well known as an activist requirements. held do not exceed 10 per centum of the investor. ValueAct’s website explains As described in more detail in the outstanding voting securities of the that it pursues a strategy of ‘‘active, Complaint, ValueAct intended from the issuer.’’ Voting securities are held constructive involvement’’ in the time it made these stock purchases to ‘‘solely for the purpose of investment’’ management of the companies in which use its position as a major shareholder if the acquirer has ‘‘no intention of it invests. The website further of both Halliburton and Baker Hughes to participating in the formulation, elaborates: ‘‘[t]he goal in each obtain access to management, to learn determination, or direction of the basic investment is to work constructively information about the companies and business decisions of the issuer.’’ 16 with management and/or the company’s the merger in private conversations with CFR § 801.1(i)(1). As explained in the board to implement a strategy or senior executives, to influence those Complaint, ValueAct did not qualify for strategies that maximize returns for all executives to improve the chances that the investment-only exemption because shareholders.’’ the Halliburton-Baker Hughes merger
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would be completed, and ultimately an acquirer must have ‘‘no intention of person who has responsibility for, or influence other business decisions participating in the formulation, authority over, each Defendant’s regardless of whether the merger was determination, or direction of the basic acquisitions of voting securities. The consummated. ValueAct executives met business decisions of the issuer’’ to compliance officer is also required to frequently with the top executives of the qualify for the investment-only obtain a certification form from each companies (both in person and by exemption. 16 CFR § 801.1(i)(1) such person verifying that he or she has teleconference), and sent numerous (emphasis added). received a copy of the Final Judgment emails to these the top executives on a ValueAct did not have a passive and understands his or her obligations. variety of business issues. During these intent when it acquired stock in To help ensure that the Defendants meetings, ValueAct identified specific Halliburton and Baker Hughes. The comply with the Final Judgment, business areas for improvement. proposed merger of these competitors Section VI grants duly authorized ValueAct also made presentations to was central to ValueAct’s investment representatives of the United States each company’s senior executives, strategy. As described in the Complaint, Department of Justice (‘‘DOJ’’) access, including presentations on post-merger ValueAct intended from the outset to upon reasonable notice, to each integration. The totality of the evidence use its ownership stake in each firm to Defendant’s records and documents described in the Complaint makes clear influence the firm’s management, as relating to matters contained in the that ValueAct could not claim the necessary, to increase the probability of Final Judgment. The Defendants must limited HSR exemption for passive the merger being consummated or also make their personnel available for investment. propose alternatives if it could not be interviews or depositions regarding completed. An investor who is such matters. In addition, the III. Explanation of the Proposed Final considering influencing basic business Defendants must, upon written request Judgment decisions—such as merger and from duly authorized representatives of The proposed Final Judgment acquisition strategy, corporate the Assistant Attorney General in charge contains injunctive relief and requires restructuring, and other competitively of the DOJ’s Antitrust Division, submit payment of civil penalties, which are significant business strategies (e.g., written reports relating to matters designed to prevent future violations of relating to price, production capacity, or contained in the Final Judgment. the HSR Act. The proposed Final production output)—is not passive. C. Civil Penalties Judgment sets forth prohibited conduct, Therefore, ValueAct was not entitled to and provides access and inspection rely on the investment-only exemption. The HSR Act currently provides a procedures to enable the United States The prohibited conduct provision of maximum civil penalty of $16,000 per to determine and ensure compliance the proposed Final Judgment is aimed at day for each day a defendant is in with the proposed Final Judgment. deterring future HSR violations of the violation of the Act. This maximum sort alleged in the Complaint, in penalty will be adjusted to $40,000 per A. Prohibited Conduct particular, those that pose the greatest day as of August 1, 2016, pursuant to Section IV of the proposed Final threat to competition. This provision the Federal Civil Penalties Inflation Judgment is designed to prevent future does not represent a comprehensive list Adjustment Act Improvements Act of HSR violations of the sort alleged in the of all conduct that would disqualify an 2015, Public Law 114–74 § 701 (further Complaint. Under this provision, the acquirer of voting securities from amending the Federal Civil Penalties Defendants may not rely on the HSR relying on the investment-only Inflation Adjustment Act of 1990), and Act’s investment-only exemption if they exemption of the HSR Act. Other Federal Trade Commission Rule 1.98, 16 intend to take, or their investment actions, including but not limited to CFR 1.98, 81 Fed. Reg. 42,476 (June 30, strategy identifies circumstances in those described in the Statement of 2016). The proposed Final Judgment which they may take, the following Basis and Purpose accompanying the imposes an $11 million civil penalty for actions: (1) proposing a merger, HSR Rules to implement the Act, may the Defendants’ failure to comply with acquisition, or sale to which the issuer disqualify an acquirer from relying on the notice and waiting requirements of of the acquired voting securities is a the investment-only exemption. the HSR Act. party; (2) proposing to another person in Premerger Notification: Reporting and The Department considered several which the Defendant has an ownership Waiting Period Requirements, 43 Fed. factors in assessing what penalty would stake the potential terms for a merger, Reg. 33,450, 34,465 (July 31, 1978) be appropriate in this case. First, the acquisition, or sale between the person (identifying conduct that may be facts as described in the Complaint and the issuer; (3) proposing new or inconsistent with the investment-only make clear that ValueAct intended to modified terms for a merger or exemption). take an active role in the business acquisition to which the issuer is a In light of ValueAct’s conduct at issue decisions of both Halliburton and Baker party; (4) proposing an alternative to a in this case and its past violations, this Hughes, and ValueAct should have merger or acquisition to which the injunction is an appropriate means to recognized its filing obligation. To the issuer is a party, either before ensure that ValueAct is deterred from extent that ValueAct had any doubt consummation or upon abandonment; violating the HSR Act again. If ValueAct about its obligations, it could have (5) proposing changes to the issuer’s does violate any of the provisions of the sought the advice of the Federal Trade corporate structure that require proposed Final Judgment, the Court may Commission’s Premerger Notification shareholder approval; or (6) proposing impose additional sanctions for Office, but did not do so. Second, as changes to the issuer’s strategies contempt, if appropriate. discussed above, ValueAct has regarding pricing, production capacity, previously violated the HSR Act six or production output of the issuer’s B. Compliance times. Finally, although the HSR Act is products and services. Section V of the proposed Final a strict liability statute, the Department The HSR Act exempts acquisitions Judgment sets forth required compliance considers it an aggravating factor that made ‘‘solely for the purpose of procedures. Section V requires the the transactions at issue raised investment.’’ 15 U.S.C. 18a(c)(9) Defendants to designate a compliance substantive competitive concerns. (emphasis added). As explained in the officer, who is required to distribute a ValueAct became one of the largest regulations implementing the HSR Act, copy of the Final Judgment to each shareholders of two direct competitors,
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and proceeded to actively and consent to the proposed Final Judgment consent judgment is in the public interest; simultaneously participate in the at any time prior to entry. The and management of each company. comments and the response of the (B) the impact of entry of such judgment Moreover, ValueAct established these upon competition in the relevant market or United States will be filed with the markets, upon the public generally and positions as Halliburton and Baker Court. In addition, comments will be individuals alleging specific injury from the Hughes were being investigated for posted on the U.S. Department of violations set forth in the complaint agreeing to a merger that threatened to Justice, Antitrust Division’s internet including consideration of the public benefit, substantially lessen competition in over website and, under certain if any, to be derived from a determination of twenty product markets in the United circumstances, published in the Federal the issues at trial. States, and planned to intervene to Register. Written comments should be 15 U.S.C. 16(e)(1)(A) & (B). In influence the probability that the merger submitted to: considering these statutory factors, the would be completed or to determine the Kathleen S. O’Neill court’s inquiry is necessarily a limited companies’ courses if it was not. As a Chief, Transportation, Energy and one, as the government is entitled to result, the violations prejudiced the Agriculture Section ‘‘broad discretion to settle with the Department’s ability to enforce the Antitrust Division defendant within the reaches of the antitrust laws. United States Department of Justice public interest.’’ United States v. Together, these factors call for a 450 Fifth Street, NW, Suite 8000 Microsoft Corp., 56 F.3d 1448, 1461 substantial penalty. However, the Washington, DC 20530 (D.C. Cir. 1995); see generally United Email: [email protected] Department did adjust the penalty States v. SBC Commc’ns, Inc., 489 F. downward from the maximum because The proposed Final Judgment Supp. 2d 1, 10–11 (D.D.C. 2007) the Defendants are willing to resolve the provides that this Court retains (assessing public interest standard matter by consent decree and avoid jurisdiction over this action, and the under the Tunney Act); United States v. prolonged litigation. Despite the parties may apply to this Court for any U.S. Airways Group, Inc., 38 F. Supp. 3d downward adjustment, the penalty in order necessary or appropriate for the 69, 75 (D.D.C. 2014) (noting the court this case will be the largest penalty ever modification, interpretation, or has broad discretion of the adequacy of imposed for a violation of the HSR Act. enforcement of the Final Judgment. the relief at issue); United States v. Such a penalty appropriately reflects the InBev N.V./S.A., No. 08–1965 (JR), gravity of the conduct at issue, and will VI. Alternatives to the Proposed Final Judgment 2009–2 Trade Cas. (CCH) ¶ 76,736, 2009 deter ValueAct and other companies U.S. Dist. LEXIS 84787, at *3, (D.D.C. from violating the HSR Act. As an alternative to the proposed Aug. 11, 2009) (noting that the court’s IV. Remedies Available to Potential Final Judgment, the United States review of a consent judgment is limited Private Litigants considered pursuing a full trial on the and only inquires ‘‘into whether the merits against the Defendants. The There is no private antitrust action for government’s determination that the United States is satisfied, however, that proposed remedies will cure the HSR Act violations; therefore, entry of the proposed relief is an appropriate the proposed Final Judgment will antitrust violations alleged in the remedy in this matter. Given the facts of complaint was reasonable, and whether neither impair nor assist the bringing of this case, the United States is satisfied any private antitrust action. the mechanism to enforce the final that the injunction coupled with the judgment are clear and manageable’’).1 V. Procedures Available for proposed civil penalty is sufficient to As the United States Court of Appeals Modification of the Proposed Final address the violations alleged in the for the District of Columbia Circuit has Judgment Complaint and to deter violations by held, under the APPA a court considers, The United States and Defendant have similarly situated entities in the future, among other things, the relationship stipulated that the proposed Final without the time, expense, and between the remedy secured and the Judgment may be entered by this Court uncertainty of a full trial on the merits. specific allegations set forth in the after compliance with the provisions of VII. Standard of Review Under the government’s complaint, whether the the APPA, provided that the United APPA for the Proposed Final Judgment decree is sufficiently clear, whether States has not withdrawn its consent. enforcement mechanisms are sufficient, The APPA requires that remedies The APPA conditions entry of the and whether the decree may positively contained in proposed consent decree upon this Court’s determination harm third parties. See Microsoft, 56 judgments in antitrust cases brought by that the proposed Final Judgment is in F.3d at 1458–62. With respect to the the United States be subject to a sixty the public interest. adequacy of the relief secured by the The APPA provides a period of at (60) day comment period, after which decree, a court may not ‘‘ ‘engage in an least sixty (60) days preceding the the court shall determine whether entry unrestricted evaluation of what relief effective date of the proposed Final of the proposed Final Judgment is ‘‘in would best serve the public.’ ’’ United Judgment within which any person may the public interest.’’ 15 U.S.C. 16(e)(1). States v. BNS, Inc., 858 F.2d 456, 462 submit to the United States written In making that determination, the court, (9th Cir. 1988) (quoting United States v. comments regarding the proposed Final in accordance with the statute as Bechtel Corp., 648 F.2d 660, 666 (9th Judgment. Any person who wishes to amended in 2004, is required to Cir. 1981)); see also Microsoft, 56 F.3d comment should do so within sixty (60) consider: at 1460–62; United States v. Alcoa, Inc., days of the date of publication of this (A) the competitive impact of such Competitive Impact Statement in the judgment, including termination of alleged 1 The 2004 amendments substituted ‘‘shall’’ for violations, provisions for enforcement and ‘‘may’’ when setting forth the relevant factors for Federal Register, or the last date of courts to consider and amended the list of factors publication in a newspaper of the modification, duration of relief sought, anticipated effects of alternative remedies to focus on competitive considerations and to summary of this Competitive Impact actually considered, whether its terms are address potentially ambiguous judgment terms. Statement, whichever is later. All Compare 15 U.S.C. § 16(e) (2004), with 15 U.S.C. ambiguous, and any other competitive § 16(e)(1) (2006); see also SBC Commc’ns, 489 F. comments received during this period considerations bearing upon the adequacy of Supp. 2d at 11 (concluding that the 2004 will be considered by the United States, such judgment that the court deems amendments ‘‘effected minimal changes’’ to Tunney which remains free to withdraw its necessary to a determination of whether the Act review).
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152 F. Supp. 2d 37, 40 (D.D.C. 2001); United States, 460 U.S. 1001 (1983)); see permit intervenors as part of its review InBev, 2009 U.S. Dist. LEXIS 84787, at also U.S. Airways, 38 F. Supp. 3d at 76 under the Tunney Act). The language *3. Courts have held that: (noting that room must be made for the wrote into the statute what Congress [t]he balancing of competing social and government to grant concessions in the intended when it enacted the Tunney political interests affected by a proposed negotiation process for settlements Act in 1974, as Senator Tunney antitrust consent decree must be left, in the (citing Microsoft, 56 F.3d at 1461)); explained: ‘‘[t]he court is nowhere first instance, to the discretion of the United States v. Alcan Aluminum Ltd., compelled to go to trial or to engage in Attorney General. The court’s role in 605 F. Supp. 619, 622 (W.D. Ky. 1985) extended proceedings which might have protecting the public interest is one of (approving the consent decree even the effect of vitiating the benefits of insuring that the government has not though the court would have imposed a breached its duty to the public in consenting prompt and less costly settlement to the decree. The court is required to greater remedy). To meet this standard, through the consent decree process.’’ determine not whether a particular decree is the United States ‘‘need only provide a 119 Cong. Rec. 24,598 (1973) (statement the one that will best serve society, but factual basis for concluding that the of Sen. Tunney). Rather, the procedure whether the settlement is ‘‘within the reaches settlements are reasonably adequate for the public interest determination is of the public interest.’’ More elaborate remedies for the alleged harms.’’ SBC left to the discretion of the court, with requirements might undermine the Commc’ns, 489 F. Supp. 2d at 17. the recognition that the court’s ‘‘scope effectiveness of antitrust enforcement by Moreover, the court’s role under the of review remains sharply proscribed by consent decree. APPA is limited to reviewing the precedent and the nature of Tunney Act Bechtel, 648 F.2d at 666 (emphasis remedy in relationship to the violations proceedings.’’ SBC Commc’ns, 489 F. added) (citations omitted).2 In that the United States has alleged in its Supp. 2d at 11.3 A court can make its determining whether a proposed Complaint, and does not authorize the public interest determination based on settlement is in the public interest, a court to ‘‘construct [its] own the competitive impact statement and district court ‘‘must accord deference to hypothetical case and then evaluate the response to public comments alone. the government’s predictions about the decree against that case.’’ Microsoft, 56 U.S. Airways, 38 F. Supp. 3d at 76. efficacy of its remedies, and may not F.3d at 1459; see also U.S. Airways, 38 require that the remedies perfectly F. Supp. 3d at 75 (noting that the court VIII. Determinative Documents match the alleged violations.’’ SBC must simply determine whether there is There are no determinative materials Commc’ns, 489 F. Supp. 2d at 17; see a factual foundation for the or documents within the meaning of the also U.S. Airways, 38 F. Supp. 3d at 75 government’s decisions such that its APPA that were considered by the (noting that a court should not reject the conclusions regarding the proposed United States in formulating the proposed remedies because it believes settlements are reasonable); InBev, 2009 proposed Final Judgment. others are preferable); Microsoft, 56 F.3d U.S. Dist. LEXIS 84787, at *20 (stating at 1461 (noting the need for courts to be that ‘‘the ‘public interest’ is not to be Date: July 12, 2016 ‘‘deferential to the government’s measured by comparing the violations Respectfully Submitted, predictions as to the effect of the alleged in the complaint against those /s/ Kathleen S. O’Neill proposed remedies’’); United States v. the court believes could have, or even Kathleen S. O’Neill Archer-Daniels-Midland Co., 272 F. should have, been alleged’’). Because U.S. Department of Justice Supp. 2d 1, 6 (D.D.C. 2003) (noting that the ‘‘court’s authority to review the Antitrust Division the court should grant due respect to the decree depends entirely on the 450 5th St. NW., 8000 government’s exercising its Washington, DC 20530 United States’ prediction as to the effect Tel: (202) 307–2931 of proposed remedies, its perception of prosecutorial discretion by bringing a Fax: (202) 307–2784 the market structure, and its views of case in the first place,’’ it follows that Email: [email protected] the nature of the case). ‘‘the court is only authorized to review Courts have greater flexibility in the decree itself,’’ and not to ‘‘effectively Kathleen S. O’Neill approving proposed consent decrees redraft the complaint’’ to inquire into Joseph Chandra Mazumdar than in crafting their own decrees other matters that the United States did Brian E. Hanna following a finding of liability in a not pursue. Microsoft, 56 F.3d at 1459– Robert A. Lepore litigated matter. ‘‘[A] proposed decree 60. As the United States District Court U.S. Department of Justice must be approved even if it falls short for the District of Columbia recently Antitrust Division of the remedy the court would impose confirmed in SBC Communications, 450 Fifth Street, NW., Suite 8000 on its own, as long as it falls within the courts ‘‘cannot look beyond the Washington, DC 20530 range of acceptability or is ‘within the complaint in making the public interest Tel: (202) 307–2931 reaches of public interest.’ ’’ United determination unless the complaint is 3 See United States v. Enova Corp., 107 F. Supp. States v. Am. Tel. & Tel. Co., 552 F. drafted so narrowly as to make a 2d 10, 17 (D.D.C. 2000) (noting that the ‘‘Tunney Supp. 131, 151 (D.D.C. 1982) (citations mockery of judicial power.’’ 489 F. Act expressly allows the court to make its public omitted) (quoting United States v. Supp. 2d at 15. interest determination on the basis of the Gillette Co., 406 F. Supp. 713, 716 (D. In its 2004 amendments, Congress competitive impact statement and response to made clear its intent to preserve the comments alone’’); United States v. Mid-Am. Mass. 1975), aff’d sub nom. Maryland v. Dairymen, Inc., No. 73–CV–681–W–1, 1977–1 Trade practical benefits of utilizing consent Cas. (CCH) ¶ 61,508, at 71,980, *22 (W.D. Mo. 1977) 2 Cf. BNS, 858 F.2d at 464 (holding that the decrees in antitrust enforcement, adding (‘‘Absent a showing of corrupt failure of the court’s ‘‘ultimate authority under the [APPA] is the unambiguous instruction that government to discharge its duty, the Court, in limited to approving or disapproving the consent ‘‘[n]othing in this section shall be making its public interest finding, should . . . decree’’); United States v. Gillette Co., 406 F. Supp. carefully consider the explanations of the 713, 716 (D. Mass. 1975) (noting that, in this way, construed to require the court to government in the competitive impact statement the court is constrained to ‘‘look at the overall conduct an evidentiary hearing or to and its responses to comments in order to picture not hypercritically, nor with a microscope, require the court to permit anyone to determine whether those explanations are but with an artist’s reducing glass’’). See generally intervene.’’ 15 U.S.C. § 16(e)(2); see also reasonable under the circumstances.’’); S. Rep. No. Microsoft, 56 F.3d at 1461 (discussing whether ‘‘the 93–298, at 6 (1973) (‘‘Where the public interest can remedies [obtained in the decree are] so U.S. Airways, 38 F. Supp. 3d at 76 be meaningfully evaluated simply on the basis of inconsonant with the allegations charged as to fall (indicating that a court is not required briefs and oral arguments, that is the approach that outside of the ‘reaches of the public interest’ ’’). to hold an evidentiary hearing or to should be utilized.’’).
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Fax: (202) 307–2874 II. Definitions III. Applicability Email: [email protected] As used in this Final Judgment: This Final Judgment applies to all Email: [email protected] (A) ‘‘Covered Acquisition’’ means an Defendants, including each of their Email: [email protected] acquisition of Voting Securities of an Email: [email protected] directors, officers, general partners, Issuer that is subject to the reporting managers, agents, parents, subsidiaries, Tai Milder and waiting requirements of the HSR successors, and assigns, all in their U.S. Department of Justice Act, 15 U.S.C. § 18a, and that is not capacities as such, and to all other Antitrust Division otherwise exempt from the requirements Persons and entities that are in active 450 Golden Gate Avenue of the HSR Act, but for which Defendant Box 36046, room 10–0101 concert or participation with any of the Tel: (415) 934–5300 have not reported under the HSR Act, in foregoing with respect to conduct Fax: (415) 934–5399 reliance on the exemption pursuant to prohibited in Section IV when the Email: [email protected] Section (c)(9) of the HSR Act, 15 U.S.C. relevant Persons or entities have § 18a(c)(9). received actual notice of this Final Attorneys for Plaintiff United States of (B) ‘‘Issuer’’ means a legal entity that Judgment by personal service or America issues Voting Securities. otherwise. United States District Court for the (C) ‘‘Officer or Director’’ means (1) the IV. Prohibited Conduct Northern District of California San members of the Issuer’s board of Francisco Division directors; (2) those persons whose Each Defendant is enjoined from positions are designated by the bylaws making a Covered Acquisition, without United States of America, Plaintiff, v. VA Partners I, LLC, et al., Defendants. or articles of incorporation of the Issuer, filing and observing the waiting period its parent, or any subsidiary of the as required by the HSR Act, 15 U.S.C. Case No.: 16–cv–01672 Judge: William Alsup Issuer; or (3) those persons whose § 18a, if at the time of such Covered Filed: 07/12/2016 positions are appointed by the board of Acquisition (i) the Defendant intends to the Issuer, its parent, or any subsidiary take any of the below actions, or (ii) the [PROPOSED] FINAL JUDGMENT of the Issuer. If there are no persons who Defendant’s investment strategy specific WHEREAS, Plaintiff, the United meet the criteria listed above, ‘‘Officer to such Covered Acquisition identifies States of America (‘‘United States’’) filed or Director’’ means those individuals circumstances in which the Defendant its Complaint on April 4, 2016, alleging whose capacities and duties are similar may take any of the below actions: that VA Partners I, LLC, ValueAct to the officers or directors of a (A) Propose to an Officer or Director Capital Master Fund, L.P., and ValueAct corporation, including deciding whether of the Issuer that the Issuer merge with, Co-Invest International, L.P. to make the acquisition or sale of a acquire, or sell itself to another Person; (collectively, ‘‘ValueAct’’ or business. Notwithstanding the (B) Propose to an Officer or Director ‘‘Defendants’’) violated Section 7A of foregoing, Officer or Director shall not of any other Person in which the the Clayton Act, 15 U.S.C. § 18a, include any persons whose job Defendant owns Voting Securities or an commonly known as the Hart-Scott- responsibilities primarily relate to equity interest the potential terms on Rodino Antitrust Improvements Act of investor relations. which that Person might merge with, 1976 (the ‘‘HSR Act’’), and Plaintiff and (D) The terms ‘‘Person(s)’’ and acquire, or sell itself to the Issuer; Defendants, by their respective ‘‘Voting Securities’’ have the meanings (C) Propose to an Officer or Director attorneys, having consented to the entry as defined in the HSR Act and of the Issuer new or modified terms for of this Final Judgment without trial or Regulations promulgated thereunder, 16 any publicly announced merger or adjudication of any issue of fact or law, CFR §§ 801–803. acquisition to which the Issuer is a and without this Final Judgment (E) ‘‘Propose’’ means communicating party; constituting any evidence against, or an a plan of action for consideration, (D) Propose to an Officer or Director admission by, the Defendants with discussion or adoption. of the Issuer an alternative to a publicly respect to any such issue of fact or law; (F) ‘‘ValueAct Partners I, LLC’’ means announced merger or acquisition to AND WHEREAS Defendants agree to Defendant ValueAct Partners I, LLC, a which the Issuer is a party, either before be bound by the provisions of this Final limited liability company and general consummation of the publicly Judgment pending its approval by the partner of Defendants ValueAct Master announced merger or acquisition or Court; Capital Fund, L.P. and ValueAct Co- upon its abandonment; NOW, THEREFORE, before any Invest International, L.P., organized (E) Propose to an Officer or Director testimony is taken, and without trial or under the laws of Delaware, with its of the Issuer changes to the Issuer’s adjudication of any issue of fact or law, principal place of business at One corporate structure that require and upon consent of the parties, it is Letterman Drive, San Francisco, CA shareholder approval; or, hereby ORDERED, ADJUDGED, AND 94129. (F) Propose to an Officer or Director DECREED: (G) ‘‘ValueAct Master Capital Fund, of the Issuer changes to the Issuer’s L.P.’’ means Defendant ValueAct Master strategies regarding the pricing of the I. Jurisdiction Capital Fund, L.P., an offshore fund Issuer’s product(s) or service(s), its The Court has jurisdiction over the organized under the laws of the British production capacity, or its production subject matter of this action. The Virgin Islands, with its principal place output. Defendants consent solely for the of business at One Letterman Drive, San purpose of this action and the entry of Francisco, CA 94129. V. Compliance this Final Judgment that this Court has (H) ‘‘ValueAct Co-Invest International, (A) Defendants shall maintain a jurisdiction over each of the parties to L.P.’’ means Defendant ValueAct Co- compliance program that shall include this action and that the Complaint states Invest International, L.P., an offshore designating, within thirty (30) days of a claim upon which relief can be fund organized under the laws of the the entry of this Final Judgment, a granted against the Defendants under British Virgin Islands, with its principal Compliance Officer with responsibility Section 7A of the Clayton Act, 15 U.S.C. place of business at One Letterman for achieving compliance with this Final § 18a. Drive, San Francisco, CA 94129. Judgment. The Compliance Officer
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shall, on a continuing basis, supervise (2) To interview, informally or on the contact Janie Ingalls of the Antitrust the review of current and proposed record, Defendants’ directors, officers, Division’s Antitrust Documents Group activities to ensure compliance with this employees, agents or other Persons, who at (202) 514–2481 for instructions before Final Judgment. The Compliance Officer may have their individual counsel making the transfer. If the payment is shall be responsible for accomplishing present, relating to any matters made by cashier’s check, the check shall the following activities: contained in this Final Judgment. The be made payable to the United States (1) Distributing, within thirty (30) interviews shall be subject to the Department of Justice and delivered to: days of the entry of this Final Judgment, reasonable convenience of the Janie Ingalls interviewee and without restraint or a copy of this Final Judgment to any United States Department of Justice Person who has responsibility for or interference by Defendants. authority over acquisitions by (B) Upon written request of a duly Antitrust Division, Antitrust Documents Defendants of Voting Securities; authorized representative of the Group (2) Distributing, within thirty (30) Assistant Attorney General in charge of 450 5th Street, NW, Suite 1024 days of succession, a copy of this Final the Antitrust Division, Defendants shall Washington, DC 20530 Judgment to any Person who succeeds submit written reports, under oath if Defendants shall pay the full amount requested, relating to any of the matters to a position described in Section V.A.1; of the civil penalties within thirty (30) contained in this Final Judgment as may and days of entry of this Final Judgment. In (3) Obtaining within sixty (60) days be requested. (C) No information or documents the event of a default in payment, from the entry of this Final Judgment, obtained by the means provided in this interest at the rate of eighteen (18) and once within each calendar year after Final Judgment shall be divulged by the percent per annum shall accrue thereon the year in which this Final Judgment Plaintiff to any person other than an from the date of default to the date of is entered during the term of this Final authorized representative of the payment. Judgment, and retaining for the term of executive branch of the United States or this Final Judgment, a written VIII. Retention of Jurisdiction of the Federal Trade Commission, certification from each Person except in the course of legal proceedings This Court retains jurisdiction to designated in Sections V.A.1 and V.A.2 to which the United States is a party enable any party to this Final Judgment that he or she: (a) has received, read, (including grand jury proceedings), or to apply to this Court at any time for understands, and agrees to abide by the for the purpose of securing compliance such further orders and directions as terms of this Final Judgment; (b) with this Final Judgment, or as may be necessary or appropriate to carry understands that failure to comply with otherwise required by law. out or construe this Final Judgment, to this Final Judgment may result in (D) If, at the time information or modify or terminate any of its conviction for criminal contempt of documents are furnished by Defendants provisions, to enforce compliance, and court; and (c) is not aware of any to Plaintiff, Defendants represent and to punish any violations of its violation of the Final Judgment. identify in writing the material in any provisions. (B) Within sixty (60) days of the entry such information or documents to IX. Expiration of Final Judgment of this Final Judgment, Defendants shall which a claim of protection may be certify to Plaintiff that they have (1) asserted under Rule 26(c)(1) of the This Final Judgment shall expire ten designated a Compliance Officer, Federal Rules of Civil Procedure, and (10) years from the date of its entry. specifying his or her name, business Defendants mark each pertinent page of X. Costs address and telephone number; and (2) such material, ‘‘Subject to claim of distributed the Final Judgment in protection under Rule 26(c)(1) of the Each party shall bear its own costs. accordance with Section V.A.1. Federal Rules of Civil Procedure,’’ then XI. Public Interest Determination (C) If any of Defendants’ directors or the United States shall give ten (10) officers or the Compliance Officer learns calendar days’ notice prior to divulging The entry of this Final Judgment is in of any violation of this Final Judgment, such material in any legal proceeding the public interest. The parties have Defendants shall within ten (10) (other than a grand jury proceeding) to complied with the requirements of the business days make a corrective filing which Defendants are not a party. Antitrust Procedures and Penalties Act, under the HSR Act. 15 U.S.C. § 16, including making copies VII. Civil Penalty VI. Plaintiff’s Access and Inspection available to the public of this Final Judgment is hereby entered in this Judgment, the Competitive Impact (A) For the purpose of determining or matter in favor of Plaintiff United States Statement, and any comments thereon securing compliance with this Final of America and against Defendants, and, and the United States’ responses to Judgment, and subject to any legally pursuant to Section 7A(g)(1) of the comments. Based upon the record recognized privilege, duly authorized Clayton Act, 15 U.S.C. § 18a(g)(1), the before the Court, which includes the representatives of the United States Federal Civil Penalties Inflation Competitive Impact Statement and any Department of Justice shall, upon Adjustment Act Improvements Act of comments and response to comments written request of a duly authorized 2015, Pub. L. 114–74 § 701 (amending filed with the Court, entry of this Final representative of the Assistant Attorney the Federal Civil Penalties Inflation Judgment is in the public interest. General in charge of the Antitrust Adjustment Act of 1990), and Federal DATED: llllllllllllllll Division, and on reasonable notice to Trade Commission Rule 1.98, 16 CFR Defendants, be permitted: 1.98, 81 FR 42,476 (June 30, 2016), Court approval subject to the Antitrust Procedures and Penalties Act, 15 U.S.C. § 16 lllll (1) Access during Defendants’ office Defendants are hereby ordered to pay a hours to inspect and copy, or at civil penalty in the amount of eleven lllllllllllllllllllll Plaintiff’s option, to require Defendants million dollars ($11,000,000). Payment Hon. William Alsup, to provide copies of all records and of the civil penalty ordered hereby shall United States District Judge. documents in their possession or be made by wire transfer of funds or [FR Doc. 2016–17432 Filed 7–22–16; 8:45 am] control relating to any matters contained cashier’s check. If the payment is made BILLING CODE 4410–11–P in this Final Judgment; and by wire transfer, Defendants shall
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DEPARTMENT OF JUSTICE Partnership and eight related Enbridge address any future spills that might entities (‘‘Enbridge’’) arising from two occur. Antitrust Division separate oil transmission pipeline The publication of this notice opens failures that resulted in discharges of oil a period for public comment on the Notice Pursuant to the National to waters of the United States and proposed Consent Decree. Comments Cooperative Research and Production adjoining shorelines. One of these should be addressed to the Assistant Act of 1993—OpenDaylight Project, pipeline failures occurred on July 25, Attorney General, Environment and Inc. 2010, near Marshall, Michigan on a Natural Resources Division, and should pipeline known as Line 6B, and resulted refer to United States v. Enbridge Notice is hereby given that, on June in discharges of oil to Talmadge Creek, Energy, Limited Partnership, et al., D.J. 27, 2016 pursuant to section 6(a) of the a large stretch the Kalamazoo River, and Ref. No. 90–5–1–1–10099. All National Cooperative Research and their adjoining shorelines. The other comments must be submitted no later Production Act of 1993, 15 U.S.C. 4301 pipeline failure occurred on or about than thirty (30) days after the et seq. (‘‘the Act’’), OpenDaylight September 9, 2010, in Romeoville, publication date of this notice. Project, Inc. (‘‘OpenDaylight’’) has filed Illinois on a pipeline known as Line 6A, Comments may be submitted either by written notifications simultaneously and resulted in discharges of oil email or by mail: with the Attorney General and the primarily to an unnamed tributary to the Federal Trade Commission disclosing Des Plaines River, a retention pond, and To submit changes in its membership. The Send them to: their adjoining shorelines. The comments: notifications were filed for the purpose Complaint seeks injunctive relief and of extending the Act’s provisions By email ...... pubcomment-ees.enrd@ civil penalties under Sections 309 and limiting the recovery of antitrust usdoj.gov. 311 of the Clean Water Act, as amended, plaintiffs to actual damages under By mail ...... Assistant Attorney General, 33 U.S.C. 1319 and 1321, for both the specified circumstances. Specifically, U.S. DOJ—ENRD, P.O. Marshall, Michigan and the Romeoville, Box 7611, Washington, DC Serro, LLC, Santa Clara, CA, has been Illinois oil spills. In addition, under 20044–7611. added as a party to this venture. No other changes have been made in Section 1002 of the Oil Pollution Act, as During the public comment period, either the membership or planned amended, 33 U.S.C. 2702, the Complaint the proposed Consent Decree may be activity of the group research project. seeks to recover from Enbridge all examined and downloaded at this Membership in this group research unreimbursed removal costs incurred Justice Department Web site: https:// project remains open, and OpenDaylight and to be incurred by the United States www.justice.gov/enrd/consent-decrees. intends to file additional written in connection with the Marshall, We will provide a paper copy of the notifications disclosing all changes in Michigan oil spill. proposed Consent Decree upon written membership. Under the proposed Consent Decree, request and payment of reproduction On May 23, 2013, OpenDaylight filed Enbridge will pay a civil penalty of $61 costs. Please mail your request and its original notification pursuant to million for the Marshall, Michigan oil payment to: Consent Decree Library, section 6(a) of the Act. The Department spill, and an additional $1 million for U.S. DOJ—ENRD, P.O. Box 7611, of Justice published a notice in the the Romeoville, Illinois oil spill. In Washington, DC 20044–7611. Federal Register pursuant to section addition, Enbridge will pay over $5.4 You may request a paper copy of the 6(b) of the Act on July 1, 2013 (78 FR million in unreimbursed federal Consent Decree with or without 39326). removal costs that the Oil Spill Liability Appendices. If requesting a copy of the The last notification was filed with Trust Fund (‘‘Fund’’) paid in connection proposed Consent Decree with the Department on April 4, 2016. A with the Marshall, Michigan oil spill Appendices, please enclose a check or notice was published in the Federal through October 1, 2015, and Enbridge money order for $52.25 (25 cents per Register pursuant to section 6(b) of the will pay all additional removal costs page reproduction cost) payable to the Act on May 3, 2016 (81 FR 26582). consistent with the National Contingency Plan that are paid by the United States Treasury. If requesting a Patricia A. Brink, Fund after October 1, 2015, in copy of the proposed Consent Decree Director of Civil Enforcement, Antitrust connection with the Marshall, Michigan without Appendices, please enclose a Division. oil spill. Prior to the Consent Decree, the check or money order for $42.25 [FR Doc. 2016–17433 Filed 7–22–16; 8:45 am] United States billed Enbridge for payable to the United States Treasury. BILLING CODE P additional federal removal costs Randall M. Stone, incurred in connection with both the Acting Assistant Chief, Environmental Marshall, Michigan oil spill and the DEPARTMENT OF JUSTICE Enforcement Section, Environment and Romeoville, Illinois oil spill, and Natural Resources Division. Notice of Lodging of Proposed Enbridge paid all such amounts billed. [FR Doc. 2016–17492 Filed 7–22–16; 8:45 am] Finally, the proposed Consent Decree Consent Decree Under the Clean Water BILLING CODE 4410–15–P Act and the Oil Pollution Act includes an extensive program of injunctive relief, including a series of On July 20, 2016, the Department of measures designed to (1) reduce the DEPARTMENT OF JUSTICE Justice lodged a proposed Consent potential for future pipeline failures that Decree with the United States District could result in unlawful discharges [Docket No. OLP 159] Court for the Western District of from Enbridge’s Lakehead System Michigan in the lawsuit entitled United pipelines, (2) improve leak detection Notice of Public Comment Period on States v. Enbridge Energy, Limited capabilities and Enbridge’s response to Proposed Uniform Language for Partnership, et al., Civil Action No. situations that could indicate potential Testimony and Reports 1:16–cv–914. pipeline failures, and (3) improve AGENCY: Department of Justice. The Complaint in this action asserts Enbridge’s emergency response and ACTION: Notice. claims against Enbridge Energy, Limited preparedness capabilities to better
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SUMMARY: This notice announces the delaying the process, those documents Supporting Documentation: Each opening of the public comment period will be posted for public comment Proposed Uniform Language document on the Proposed Uniform Language for separately. is accompanied by supporting Testimony and Reports (Proposed Ongoing Review of Previously documentation (posted separately) that Uniform Language) documents for the Received Comments: The Department provides additional scientific forensic disciplines of anthropology, received 127 comments on the Proposed background and policy considerations explosive chemistry, explosive devices, Uniform Language documents for fiber, to support the statements approved for geology, hair, handwriting analysis, footwear and tire treads, general use and statements not approved in metallurgy, mitochondrial DNA and Y chemistry, glass, latent prints, serology, examination testimony and/or chromosome typing, and paints and and toxicology. Comment was open laboratory reports. The Department is polymers. through July 8, 2016. Due to the not seeking public comment on the DATES: Written public comment substantive nature of the comments and supporting documentation, however, regarding the Proposed Uniform the recency of the closing of the commenters are welcome to provide Language should be submitted through comment period, the Department’s thoughts and suggestions on these www.regulations.gov before August 26, adjudication process is ongoing. While documents but notes that only each 2016. several comments suggested changes to Proposed Uniform Language document the format and content of the Proposed will be forwarded to the Deputy FOR FURTHER INFORMATION CONTACT: The Uniform Language documents, the Attorney General for review and Office of Legal Policy, 950 Pennsylvania Department has not decided whether, or potential adoption by Department Avenue NW., Washington, DC 20530, by to what extent, to make changes in light personnel. phone at 202–514–4601 or via email at of those comments, nor have changes Posting of Public Comments: To [email protected]. been incorporated into Proposed ensure proper handling of comments, SUPPLEMENTARY INFORMATION: As part of Uniform Language documents for please reference ‘‘Docket No. OLP 159’’ the Department’s continued efforts to anthropology, explosive chemistry, on all electronic and written advance the practice of forensic science explosive devices, geology, hair, correspondence. The Department by ensuring Department forensic handwriting, metallurgy, mitochondrial encourages all comments on this examiners are testifying and reporting DNA and Y chromosome typing, and framework be submitted electronically consistent with applicable scientific paints and polymers. Previously through www.regulations.gov. Paper standards and across Department received comments are being reviewed comments that duplicate the electronic components including the Bureau of and, if adopted, will be reflected in all submission are not necessary as all Alcohol, Tobacco, Firearms and relevant Uniform Language documents. comments submitted to Explosives (ATF), the Drug Enforcement As a result, commenters do not need to www.regulations.gov will be posted for Administration (DEA), and the Federal submit identical or substantially public review and are part of the official Bureau of Investigation (FBI), the identical comments on this group of docket record. Department is developing Proposed Proposed Uniform Language documents; In accordance with the Federal Uniform Language that would apply to commenters may wish to make their Records Act, please note that all all Department forensic laboratory comments more discipline-specific for comments received are considered part personnel. The Proposed Uniform this group. of the public record, and shall be made Language documents are based on the Proposed Uniform Language: The available for public inspection online at Federal Bureau of Investigation’s (FBI) Department is posting the Proposed www.regulations.gov. The comments to Approved Scientific Standards for Uniform Language document for each of be posted may include personally Testimony and Reports (ASSTRs) but the following forensic science identifiable information (such as your differ substantially. As a primary matter, disciplines on www.regulations.gov and name, address, etc.) and confidential the ASSTRs are currently in effect for seeking public comment: anthropology, business information voluntarily FBI personnel, while the Proposed explosive chemistry, explosive devices, submitted by the commenter. Uniform Language documents are geology, hair, handwriting, metallurgy, The Department will post all merely proposed and have not been mitochondrial DNA and Y chromosome comments received on adopted. After adjudication of public typing, and paints and polymers. Each www.regulations.gov without making comment and the incorporation of Proposed Uniform Language document any changes to the comments or appropriate edits, it is anticipated that contains two primary sections: redacting any information, including each Proposed Uniform Language statements approved for use in any personally identifiable information document will be forwarded to the examination testimony and/or provided. It is the responsibility of the Deputy Attorney General. If one or more laboratory reports and statements not commenter to safeguard personally are adopted by the Deputy Attorney approved for use in examination identifiable information. You are not General, they would become effective testimony and/or laboratory reports. We required to submit personally for Department forensic laboratory ask that you review and provide identifying information in order to personnel. comment on each Proposed Uniform comment on the Proposed Uniform Process: On June 10, 2016, the Language document separately. Language and the Department Department posted Proposed Uniform Review Sheet: In order to assist recommends that commenters not Language documents for fiber, footwear commenters in evaluating each include personally identifiable and tire treads, general chemistry, glass, Proposed Uniform Language document, information such as Social Security latent prints, serology, and toxicology. the Department has provided a review Numbers, personal addresses, telephone At that time, the Department stated its sheet that identifies certain criteria. numbers, and email addresses that they intention to publish all remaining Commenters may find it helpful to use do not want made public in their Proposed Uniform Language documents a format similar to that provided by the comments as such submitted in July 2016. Documents for two review sheet to frame their responses. information will be available to the disciplines (nuclear DNA and firearms Use of the review sheet is optional but public via www.regulations.gov. and toolmarks) are not ready to be would be helpful to provide consistency Comments submitted through posted at this time but rather than in commentary. www.regulations.gov will not include
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the email address of the commenter NUCLEAR REGULATORY need a reasonable accommodation to unless the commenter chooses to COMMISSION participate in these public meetings, or need this meeting notice or the include that information as part of his [NRC–2016–0001] or her comment. transcript or other information from the public meetings in another format (e.g. Dated: July 20, 2016. Sunshine Act Meeting braille, large print), please notify Kira Antell, DATE: July 25, August 1, 8, 15, 22, 29, Kimberly Meyer, NRC Disability Senior Counsel, Office of Legal Policy. 2016. Program Manager, at 301–287–0739, by [FR Doc. 2016–17551 Filed 7–22–16; 8:45 am] PLACE: Commissioners’ Conference videophone at 240–428–3217, or by BILLING CODE 4410–18–P Room, 11555 Rockville Pike, Rockville, email at Kimberly.Meyer-Chambers@ Maryland. nrc.gov. Determinations on requests for reasonable accommodation will be STATUS: Public and Closed. made on a case-by-case basis. NATIONAL ARCHIVES AND RECORDS Week of July 25, 2016 * * * * * ADMINISTRATION Tuesday, July 26, 2016 Members of the public may request to receive this information electronically. 9:00 a.m. Meeting with NRC [NARA–2016–043] If you would like to be added to the Stakeholders (Public Meeting) distribution, please contact the Nuclear Advisory Committee on Presidential (Contact: Denise McGovern: 301– Regulatory Commission, Office of the Library-Foundation Partnerships 415–0681) Secretary, Washington, DC 20555 (301– This meeting will be webcast live at 415–1969), or email AGENCY: National Archives and Records the Web address—http://www.nrc.gov/. [email protected] or [email protected]. Administration (NARA). Thursday, July 28, 2016 Dated: July 20, 2016. ACTION: Charter Renewal of the Advisory 9:00 a.m. Hearing on Combined Denise L. McGovern, Committee on Presidential Library- Licenses for Levy Nuclear Plant, Foundation Partnerships. Units 1 and 2: Section 189a. of the Policy Coordinator, Office of the Secretary. Atomic Energy Act Proceeding [FR Doc. 2016–17619 Filed 7–21–16; 4:15 pm] SUMMARY: In accordance with the (Public Meeting) (Contact: Donald BILLING CODE 7590–01–P provisions of section 9(a)(2) of the Habib: 301–415–1035) Federal Advisory Committee Act (Pub. This meeting will be webcast live at L. 92–463, 5 U.S.C., App.), the National the Web address—http://www.nrc.gov/. RAILROAD RETIREMENT BOARD Archives and Records Administration Week of August 1, 2016—Tentative Agency Forms Submitted for OMB (NARA) is renewing the Advisory Review, Request for Comments Committee on Presidential Library- There are no meetings scheduled for Foundation Partnerships, a federal the week of August 1, 2016. Summary: In accordance with the advisory committee that advises the Week of August 8, 2016—Tentative Paperwork Reduction Act of 1995 (44 Archivist of the United States on U.S.C. Chapter 35), the Railroad There are no meetings scheduled for matters relating to the public-private Retirement Board (RRB) is forwarding the week of August 8, 2016. partnership of the Presidential Libraries an Information Collection Request (ICR) operated by NARA. Week of August 15, 2016—Tentative to the Office of Information and Regulatory Affairs (OIRA), Office of There are no meetings scheduled for DATES: The charter renewal was Management and Budget (OMB). Our the week of August 15, 2016. effective on July 16, 2016 and remains ICR describes the information we seek in effect for two years from that date. Week of August 22, 2016—Tentative to collect from the public. Review and ADDRESSES: Please submit any questions There are no meetings scheduled for approval by OIRA ensures that we on this notice by email to regulation_ the week of August 22, 2016. impose appropriate paperwork burdens. [email protected], by phone to The RRB invites comments on the Week of August 29, 2016—Tentative 301.837.3151, or by mail to National proposed collection of information to determine (1) the practical utility of the Archives and Records Administration; There are no meetings scheduled for collection; (2) the accuracy of the Regulation Comments Desk, Suite 4100; the week of August 29, 2016. estimated burden of the collection; (3) * * * * * College Park, MD 20740–6001. ways to enhance the quality, utility, and The schedule for Commission FOR FURTHER INFORMATION CONTACT: clarity of the information that is the meetings is subject to change on short subject of collection; and (4) ways to Denise LeBeck by phone at 301–837– notice. For more information or to verify minimize the burden of collections on 1724, by email at denise.lebeck@ the status of meetings, contact Denise respondents, including the use of nara.gov, or by mail at National McGovern at 301–415–0681 or via email automated collection techniques or Archives and Records Administration; at [email protected]. Office of Presidential Libraries; 8601 other forms of information technology. * * * * * Comments to the RRB or OIRA must Adelphi Road; College Park, MD 20740– The NRC Commission Meeting 6001. contain the OMB control number of the Schedule can be found on the Internet ICR. For proper consideration of your Dated: July 20, 2016. at: http://www.nrc.gov/public-involve/ comments, it is best if the RRB and Patrice Little Murray, public-meetings/schedule.html. OIRA receive them within 30 days of Committee Management Officer. * * * * * the publication date. [FR Doc. 2016–17460 Filed 7–22–16; 8:45 am] The NRC provides reasonable Title and purpose of information accommodation to individuals with collection: Repayment of Debt; OMB BILLING CODE 7515–01–P disabilities where appropriate. If you 3220–0169.
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When the Railroad Retirement Board Previous Requests for Comments: The Abstract: When the RRB determines (RRB) determines that an overpayment RRB has already published the initial that an overpayment of benefits under of Railroad Retirement Act or Railroad 60-day notice (81 FR 28907 on May 10, the Railroad Retirement Act or Railroad Unemployment Insurance Act benefits 2016) required by 44 U.S.C. 3506(c)(2). Unemployment Insurance Act has has occurred, it initiates prompt action That request elicited no comments. occurred, it initiates action to notify the to notify the annuitant of the claimant of the overpayment and to Information Collection Request (ICR) overpayment and to recover the money recover the amount owed. The owed the RRB. To effect payment of a Title: Repayment of Debt. collection obtains information needed to debt by credit card, the RRB utilizes OMB Control Number: 3220–0169. allow for repayment by the claimant by Form G–421F, Repayment by Credit credit card, in addition to the customary Card. The RRB’s procedures pertaining Form(s) submitted: G–421F. form of payment by check or money to benefit overpayment determinations Type of request: Extension without order. and the recovery of such benefits are change of a currently approved Changes proposed: The RRB proposes prescribed in 20 CFR 255 and 340. collection. no changes to Form G–421F. One form is completed by each Affected public: Individuals or The burden estimate for the ICR is as respondent. Completion is voluntary. Households. follows:
Annual Time Burden Form No. responses (minutes) (hours)
G–421F ...... 535 5 45
Total ...... 535 ...... 45
Additional Information or Comments: Securities and Exchange Commission A. Self-Regulatory Organization’s Copies of the forms and supporting (‘‘SEC’’ or ‘‘Commission’’) the proposed Statement of the Purpose of, and documents can be obtained from Dana rule change as described in Items I and Statutory Basis for, the Proposed Rule Hickman at (312) 751–4981 or II below, which Items have been Change [email protected]. prepared by FINRA. The Commission is 1. Purpose Comments regarding the information publishing this notice to solicit collection should be addressed to comments on the proposed rule change (i) Background Charles Mierzwa, Railroad Retirement from interested persons. Board, 844 North Rush Street, Chicago, The market in U.S. Treasury Illinois, 60611–2092 or I. Self-Regulatory Organization’s securities—or ‘‘Treasuries’’ 3—is the [email protected] and to the Statement of the Terms of Substance of deepest and most liquid government OMB Desk Officer for the RRB, Fax: the Proposed Rule Change securities market in the world.4 202–395–6974, Email address: OIRA_ Treasuries are traded by broker-dealers [email protected]. FINRA is proposing to expand the as well as commercial bank dealers and Trade Reporting and Compliance Engine principal trading firms (‘‘PTFs’’) that are Charles Mierzwa, (‘‘TRACE’’) reporting rules to include Chief of Information Resources Management. not registered as broker-dealers with the most secondary market transactions in SEC or members of FINRA. There is not [FR Doc. 2016–17475 Filed 7–22–16; 8:45 am] marketable U.S. Treasury securities. currently a complete public repository BILLING CODE 7905–01–P The text of the proposed rule change is available on FINRA’s Web site at 3 When used throughout this filing, the term http://www.finra.org, at the principal ‘‘Treasuries’’ includes all debt securities issued by SECURITIES AND EXCHANGE office of FINRA and at the the U.S. Department of the Treasury, and the term COMMISSION ‘‘U.S. Treasury Securities’’ reflects the definition of Commission’s Public Reference Room. that term in the TRACE Rules, which comprises a [Release No. 34–78359; File No. SR–FINRA– II. Self-Regulatory Organization’s narrower group of Treasuries. See Rule 6710(p). The 2016–027] term ‘‘Treasuries’’ does not include Treasury Statement of the Purpose of, and futures, and as discussed below, the proposed rule Self-Regulatory Organizations; Statutory Basis for, the Proposed Rule change would not apply to transactions in Treasury Change futures. Financial Industry Regulatory 4 Treasuries—such as bills, notes, and bonds—are Authority, Inc.; Notice of Filing of a In its filing with the Commission, debt obligations of the U.S. government. Because Proposed Rule Change Relating to the these debt obligations are backed by the ‘‘full faith Reporting of U.S. Treasury Securities FINRA included statements concerning and credit’’ of the government, and thus by its to the Trade Reporting and the purpose of and basis for the ability to raise tax revenues and print currency, proposed rule change and discussed any Treasuries are generally considered the safest of all Compliance Engine investments. As of April 30, 2016, there was comments it received on the proposed approximately $13.4 trillion outstanding of interest- July 19, 2016. rule change. The text of these statements bearing marketable U.S. Treasury debt. See U.S. Pursuant to Section 19(b)(1) of the may be examined at the places specified Department of the Treasury, Bureau of the Fiscal Securities Exchange Act of 1934 Service, Monthly Statement of the Public Debt, in Item IV below. FINRA has prepared April 30, 2016, available at http:// 1 2 (‘‘Act’’) and Rule 19b–4 thereunder, summaries, set forth in sections A, B, www.treasurydirect.gov/govt/reports/pd/mspd/ notice is hereby given that on July 18, and C below, of the most significant 2016/opds042016.prn. According to data compiled 2016, Financial Industry Regulatory aspects of such statements. by the Securities Industry and Financial Markets Authority, Inc. (‘‘FINRA’’) filed with the Association (‘‘SIFMA’’), average daily trading volumes by primary dealers in June 2016 was estimated at slightly over $512.5 billion. See U.S. 1 15 U.S.C. 78s(b)(1). Treasury Trading Volume, available at http:// 2 17 CFR 240.19b–4. www.sifma.org/research/statistics.aspx.
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or audit trail for information on obtain additional market data and in rule change is FINRA’s proposal to transactions in Treasuries.5 ways to more effectively monitor require reporting by its members of On October 15, 2014, the market for diverse but related markets.’’ 10 The RFI transactions in U.S. Treasury Securities. Treasuries (as well as for Treasury stated that the Treasury Dept. was also (ii) Proposed Rule Change futures and other closely-related interested in ‘‘the potential benefits and financial markets) experienced an costs of additional transparency with As described below, the proposed rule unusually high level of volatility and a respect to Treasury market trading change would require all FINRA rapid round-trip in prices. In response activity and trading venue policies and members involved in transactions in to the unexplained volatility, an existing practices.’’ 11 U.S. Treasury Securities, as defined in interagency working group (‘‘IAWG’’) The RFI included four sections, each the TRACE rules, to report most led by the U.S. Department of the of which expanded upon one of the four transactions in those securities to Treasury (‘‘Treasury Dept.’’) analyzed ‘‘next steps’’ identified in the JSR, and TRACE. both the conditions that contributed to each section included numerous (A) Scope of Securities the events of October 15 and the questions for public consideration, structure of the U.S. Treasury market ranging from broad high-level questions The TRACE reporting rules apply to more generally.6 A detailed joint staff to detailed and specific questions on ‘‘Reportable TRACE Transactions,’’ as report (‘‘JSR’’), was issued on July 13, discrete issues. Section I requested defined in Rule 6710(c), involving 2015, that included a set of preliminary comment on the evolution of the U.S. ‘‘TRACE-Eligible Securities,’’ as defined findings on the October 15 volatility, Treasury market, the primary drivers of in Rule 6710(a). Any ‘‘U.S. Treasury described the current state of the U.S. that evolution, and implications for Security,’’ as defined in Rule 6710(p), is Treasury market, and proposed a series market functioning and liquidity. currently excluded from the definition of four ‘‘next steps’’ in understanding Section II asked for information on risk of TRACE-Eligible Security; the evolution of the U.S. Treasury management practices and market consequently, no trading activity by market.7 Included among these ‘‘next conduct across the U.S. Treasury market FINRA members in U.S. Treasury steps’’ was an assessment of the data and on implications for operational Securities is required to be reported to available to regulators and to the public risks and risks to market functioning TRACE. Rule 6710(p) defines ‘‘U.S. regarding the cash market for and integrity. Section III requested Treasury Security’’ as ‘‘a security issued Treasuries.8 comment on official sector access to by the U.S. Department of the Treasury Following publication of the JSR, on data regarding the cash market for to fund the operations of the federal January 19, 2016, the Treasury Dept. Treasuries. Section IV focused on government or to retire such published a Request for Information whether dissemination of U.S. Treasury outstanding securities.’’ (‘‘RFI’’) seeking public comment on market transaction data to the public FINRA is proposing to amend the structural changes in the U.S. Treasury would be beneficial. TRACE rules to require the reporting of market and their implications for market The comment period on the RFI transactions in all Treasuries with the functioning.9 One of the RFI’s stated closed on April 22, 2016, and 52 exception of savings bonds.13 To intents was to develop a holistic view of comment letters were submitted. As effectuate this requirement, the trading and risk management practices discussed below, approximately 30 of proposed rule change amends the in the U.S. Treasury market, particularly the letters addressed reporting to the definition of ‘‘TRACE-Eligible Security’’ in light of the evolution of the market official sector or public dissemination. to include U.S. Treasury Securities and resulting from technological advances Following receipt and review of the amends the definition of ‘‘U.S. Treasury over the past two decades, including the comment letters, on May 16, 2016, the Security’’ to exclude savings bonds. The associated growth of high-speed Treasury Dept. and the SEC announced term ‘‘U.S. Treasury Securities’’ will electronic trading. The RFI noted that, that ‘‘they are working together to therefore include all marketable given this evolution, ‘‘access to timely explore efficient and effective means of Treasuries, including Treasury bills, and comprehensive data across related collecting U.S. Treasury cash market notes, and bonds, as well as separate markets is increasingly important,’’ and transaction information[, and that as] principal and interest components of a the Treasury Dept. is therefore part of those efforts, the agencies are U.S. Treasury Security that have been ‘‘interested in the most efficient and requesting that [FINRA] consider a separated pursuant to the Separate effective ways for the official sector to proposal to require its member brokers Trading of Registered Interest and and dealers to report Treasury cash Principal of Securities (STRIPS) 5 See Joint Staff Report: The U.S. Treasury Market market transactions to a centralized program operated by the Treasury on October 15, 2014, at 9 (July 13, 2015) (‘‘JSR’’), repository.’’ 12 The Treasury Dept. noted 14 available at https://www.sec.gov/reportspubs/ Dept. Because Money Market special-studies/treasury-market-volatility-10-14- that it ‘‘will continue working with Instruments are excluded from the 2014-joint-report.pdf. (‘‘Several agencies under a other agencies and authorities to range of authorities are responsible for regulating develop a plan for collecting similar 13 Unlike other Treasuries, savings bonds issued various components of the Treasury market and its data from institutions who actively by the Treasury Dept. are generally non-transferable participants.’’). Transactions in Treasury futures are trade U.S. Treasury securities but are and are therefore not marketable securities ultimately reported to the Commodity Futures purchased and sold in the secondary market. See, Trading Commission (‘‘CFTC’’), which has not FINRA members.’’ The proposed e.g., 31 CFR 353.15 (providing that Series EE and jurisdiction over futures. See id. at 10–12. Series HH ‘‘[s]avings bonds are not transferable and 6 The IAWG consists of representatives of the 10 RFI Notice, supra note 9, at 3929. are payable only to the owners named on the bonds, Treasury Dept., the Federal Reserve Board of 11 RFI Notice, supra note 9, at 3929. except as specifically provided in these regulations Governors, the Federal Reserve Bank of New York, 12 Press Release, U.S. Department of the Treasury, and then only in the manner and to the extent so the SEC, and the CFTC. Statement on Trade Reporting in the U.S. Treasury provided’’); see also 31 CFR 360.15 (establishing the 7 See JSR, supra note 5, at 7. Market (May 16, 2016), available at https:// same transfer provisions for Series I savings bonds). 8 See JSR, supra note 5, at 6–7, 45–49. www.treasury.gov/press-center/press-releases/ 14 The STRIPS program is a program operated by 9 The RFI, which was written in consultation with Pages/jl0457.aspx (‘‘Treasury Press Release’’). See the Treasury Dept. under which eligible securities the staffs of all of the agencies involved in the JSR, also Press Release, U.S. Securities and Exchange are authorized to be separated into principal and was published in the Federal Register on January Commission, Statement on Trade Reporting in the interest components and transferred separately. See 22, 2016. See Notice Seeking Public Comment on U.S. Treasury Market (May 16, 2016), available at 31 CFR 356.2; see generally 31 CFR 356.31 the Evolution of the Treasury Market Structure, 81 https://www.sec.gov/news/pressrelease/2016- (providing details on how the STRIPS program FR 3928 (January 22, 2016) (‘‘RFI Notice’’). 90.html. works).
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definition of TRACE-Eligible Security, of transactions. The proposed rule reverse repurchase transactions are the proposed rule change also amends change amends Rule 6730(e) to exempt structured as purchases and sales, the the definition of ‘‘Money Market from the reporting requirement transfer of securities effectuated as part Instrument’’ to exclude U.S. Treasury purchases by a member from the of these transactions is not made as the Securities, including U.S. Treasury bills, Treasury Dept. as part of an auction. All result of an investment decision but, which have maturities of one year or U.S. Treasury Securities reportable to rather, is more akin to serving as less, and therefore any U.S. Treasury TRACE are offered to the public by the collateral pledged as part of a secured Security, including U.S. Treasury bills, Treasury Dept. through an auction financing. Consequently, repurchase would be TRACE reportable under the process.18 When-issued trading in these and reverse repurchase transactions are proposed rule change.15 securities, however, which would be economically equivalent to financings, reportable under the proposed rule (B) Reportable Transactions and the pricing components of these change, can begin before the auction transactions are typically not the market In general, any transaction in a takes place after the Treasury Dept. value of the securities. For these TRACE-Eligible Security is a announces an auction.19 reasons, historically, FINRA has taken ‘‘Reportable TRACE Transaction’’ unless The proposed rule change includes the position that repurchase and reverse the transaction is subject to an three new definitions for ‘‘Auction,’’ repurchase transactions should not be 16 exemption. Consequently, unless ‘‘Auction Transaction,’’ and ‘‘When- reported to TRACE and is proposing to specifically exempted, the proposed Issued Transaction’’ to address codify this exemption as part of the rule change would define all members’ reporting obligations proposed rule change. transactions in U.S. Treasury Securities involving when-issued trading activity The proposed rule change would as ‘‘Reportable TRACE Transactions,’’ and purchases directly from the require Reportable TRACE Transactions and therefore subject to TRACE Treasury Dept. as part of an auction. in U.S. Treasury Securities generally to reporting requirements. As is currently The proposed rule change amends Rule be reported on the same day as the the case with all TRACE reporting 6730(e) to exempt an ‘‘Auction transaction on an end-of-day basis. obligations, any member that is a ‘‘Party Transaction,’’ defined as the purchase of Because FINRA is not currently to a Transaction’’ in a TRACE-Eligible a U.S. Treasury Security in an proposing to disseminate any trade-level Security is required to report the 20 Auction, from the TRACE reporting information to the public regarding transaction; thus, a reportable requirements. FINRA is proposing to transactions in U.S. Treasury Securities, transaction in U.S. Treasury Securities exempt Auction Transactions from the the proposed rule change generally between two FINRA members must be reporting requirements because this imposes a same-day reporting reported by both members.17 transaction data is already maintained Rule 6730(e) currently includes six requirement as opposed to a more by the Treasury Dept. as part of the immediate requirement, such as 15 exemptions from the TRACE trade auction process and is readily accessible reporting requirements for certain types minutes. Under the proposed to regulators; therefore, reporting these amendments to Rule 6730, Reportable transactions to TRACE would be TRACE Transactions in U.S. Treasury 15 See 31 CFR 356.5(a). Rule 6710(o) defines a duplicative and provide limited Securities executed on a business day at ‘‘Money Market Instrument’’ as ‘‘a debt security that additional benefit to regulators. When- at issuance has a maturity of one calendar year or or after 12:00:00 a.m. Eastern Time issued transactions, however, are not less, or, if a discount note issued by an Agency, as through 5:00:00 p.m. Eastern Time must defined in paragraph (k), or a Government- currently reported to the Treasury Dept., be reported the same day during TRACE Sponsored Enterprise, as defined in paragraph (n), and the proposed rule change would System Hours.22 Transactions executed a maturity of one calendar year and one day or require members to report ‘‘When- less.’’ on a business day after 5:00:00 p.m. 16 Issued Transactions,’’ defined as ‘‘a For purposes of the trade reporting rules, Eastern Time but before the TRACE transaction in a U.S. Treasury Security FINRA considers a ‘‘trade’’ or a ‘‘transaction’’ to system closes must be reported no later entail a change of beneficial ownership between that is executed before the Auction for parties. See, e.g., Securities Exchange Act Release the security.’’ than the next business day (T+1) during No. 74482 (March 11, 2015), 80 FR 13940, 13941 The proposed rule change also TRACE System Hours, and, if reported (March 17, 2015) (Order Approving SR–FINRA– on T+1, designated ‘‘as/of’’ and include 2014–050) (noting that, in the context of TRACE amends the list of exempted reporting, ‘‘[b]ecause the transaction between the transactions in Rule 6730(e) to codify a the date of execution. Transactions member and its non-member affiliate represents a long-standing interpretation for all executed on a business day at or after change in beneficial ownership between different TRACE-Eligible Securities that 6:30:00 p.m. Eastern Time through legal entities, it is a reportable transaction and is 11:59:59 p.m. Eastern Time—or on a publicly disseminated under the current rule’’); repurchase and reverse repurchase Trade Reporting Frequently Asked Questions, transactions are not reportable to Saturday, a Sunday, a federal or Q100.4, available at http://www.finra.org/industry/ TRACE.21 Although repurchase and religious holiday or other day on which trade-reporting-faq#100 (defining ‘‘trade’’ and the TRACE system is not open at any ‘‘transaction’’ for purposes of the equity trade 18 time during that day (determined using reporting rules as a change in beneficial The regulations governing the sale and issuance ownership). For this reason, although trading a of these Treasuries, as well as the auction process, Eastern Time)—must be reported the principal or interest component of a U.S. Treasury are set forth in Part 356 of Title 31 of the Code of next business day (T+1) during TRACE Security that has been separated under the STRIPS Federal Regulations. System Hours, designated ‘‘as/of,’’ and 19 program would constitute a Reportable TRACE See Kenneth D. Garbade and Jeffrey F. Ingber, include the date of execution. Transaction, the act of separating or reconstituting The Treasury Auction Process: Objectives, the components of a U.S. Treasury Security under Structure, and Recent Adaptations, 11 Current (C) Reportable Transaction Information the STRIPS program would not constitute a Issues in Econ. & Fin., Feb. 2005, at 2, available at Reportable TRACE Transaction. FINRA is proposing https://www.newyorkfed.org/research/current_ Rule 6730(c) lists the following to adopt Supplementary Material .05 to Rule 6730 issues/ci11-2.html. transaction information that must be to clarify the reporting obligations in this scenario. 20 The proposed rule change defines an 17 See Rule 6730(a), (b)(1). The term ‘‘Party to a ‘‘Auction’’ as ‘‘the bidding process by which the Transaction’’ is defined in Rule 6710(e) as ‘‘an U.S. Department of the Treasury sells marketable available at http://www.finra.org/industry/faq- introducing broker, if any, an executing broker- securities to the public pursuant to part 356 of Title reporting-corporate-and-agencies-debt-frequently- dealer, or a customer.’’ For purposes of the 31 of the Code of Federal Regulations.’’ See 31 CFR asked-questions-faq. definition, the term ‘‘customer’’ includes a broker- 356.2. 22 TRACE System Hours are currently 8:00:00 dealer that is not a FINRA member. See Rule 21 See Reporting of Corporate and Agencies Debt a.m. Eastern Time through 6:29:59 p.m. Eastern 6710(e). Frequently Asked Questions, Question 4.6, Time on a business day. See Rule 6710(t).
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reported to TRACE for each Reportable conducted on electronic platforms. As two new modifiers to indicate particular TRACE Transaction: noted in the RFI, inter-dealer trading in transactions that are part of larger (1) CUSIP number or, if a CUSIP the cash market increasingly makes use trading strategies. First, the proposed number is not available at the Time of of electronic platforms operated by rule change would require that members Execution, a similar numeric identifier inter-dealer brokers, and ‘‘a significant append a ‘‘.B’’ modifier to a trade report or a FINRA symbol; portion of trading in the dealer-to- if the transaction being reported is part (2) The size (volume) of the customer market occurs on platforms of a series of transactions where at least transaction, as required by Rule that facilitate the matching of buy and one of the transactions involves a 6730(d)(2); sell orders primarily through request for futures contract (e.g., a ‘‘basis’’ trade). (3) Price of the transaction (or the quote (‘‘RFQ’’) systems.’’ 23 Because Second, the proposed rule change elements necessary to calculate price, many of these electronic platforms would require that members append an which are contract amount and accrued capture timestamps in sub-second time ‘‘.S’’ modifier to a trade report if the interest) as required by Rule 6730(d)(1); increments, FINRA is proposing new transaction being reported is part of a (4) A symbol indicating whether the Supplementary Material .04 to Rule series of transactions where at least one transaction is a buy or a sell; 6730 that would require that, when of the transactions is executed at a pre- (5) Date of Trade Execution (for ‘‘as/ reporting transactions in U.S. Treasury determined fixed price or would of’’ trades only); Securities executed electronically, otherwise result in the transaction being (6) Contra-party’s identifier (MPID, members report the time of execution to executed away from the current market customer, or a non-member affiliate, as the finest increment of time captured in (e.g., a fixed price transaction in an ‘‘on- applicable); the member’s system (e.g., milliseconds the-run’’ security as part of a transaction (7) Capacity—Principal or Agent (with or microseconds) but, at a minimum, in in an ‘‘off-the-run’’ security). These riskless principal reported as principal); increments of seconds. FINRA is not modifiers would allow FINRA to better (8) Time of Execution; requiring members to update their understand and evaluate execution (9) Reporting side executing broker as systems to comply with a finer time prices for specific transactions in U.S. ‘‘give-up’’ (if any); increment; rather, the proposed rule Treasury Securities that may otherwise (10) Contra side Introducing Broker in change would simply require members appear aberrant because they are case of ‘‘give-up’’ trade; to report the time of execution to significantly outside of the price range (11) The commission (total dollar TRACE in the same time increment the for that security at that time. Among amount); 24 other things, FINRA believes that these (12) Date of settlement; and member’s system captures. Finally, FINRA is proposing a new modifiers could reduce the number of (13) Such trade modifiers as required trade indicator and two new trade false positive results that could be by either the TRACE rules or the TRACE modifiers that reflect unique attributes generated through automated users guide. of the U.S. Treasury cash market. The surveillance patterns that include the The proposed rule change would price as part of the pattern. generally apply the existing information proposed rule change would establish a requirements for Reportable TRACE new trade indicator for any Reportable (D) Other Amendments Transactions to trade reports in TRACE Transaction in a U.S. Treasury Security that meets the definition of The proposed rule change amends Reportable TRACE Transactions in U.S. Rule 6750 regarding the dissemination Treasury Securities; however, FINRA is ‘‘When-Issued Transaction.’’ Such an indicator is necessary so that FINRA can of transaction information reported to proposing several amendments to Rule TRACE. As indicated by numerous 6730 to clarify how some of this readily determine whether price is being reported on the transaction based on a commenters to the RFI, there is information would be reported if the substantial disagreement as to the transaction involves a U.S. Treasury percentage of face or par value or whether, as required for When-Issued potential benefits of public Security. First, the proposed rule change dissemination of information on amends Rule 6730 to clarify that, Transactions, the member is reporting the yield. The indicator would also be transactions in U.S. Treasury Securities. because when-issued trading is based on Many commenters expressed concerns used to validate trades in a U.S. yield rather than on price as a about public dissemination of these Treasury Security that are reported with percentage of face or par value, transactions, and these concerns are an execution date before the auction for members should report the yield in lieu heightened when some, but not all, of the price when the transaction is a the security has taken place. In addition to the new indicator, the market participants are reporting When-Issued Transaction, as defined in proposed rule change would require the transactions. Consequently, at this time, the TRACE rules. The proposed use of two new modifiers when FINRA is not proposing to disseminate amendments also make clear that, as is applicable to reported transactions. information on transactions in U.S. the case whenever price is reported for Treasury Securities, and the proposed Because individual transactions in U.S. a transaction executed on a principal rule change amends Rule 6750(b) to add Treasury Securities are often executed basis, the yield reported by a member transactions in U.S. Treasury Securities as part of larger trading strategies, for a When-Issued Transaction must to the list of transactions for which individual transactions undertaken as include any mark-up or mark-down. If information will not be disseminated. part of these strategies can often be the member, however, is acting in an The proposed rule change also priced away from the current market for agency capacity, the total dollar amount amends two fee provisions in the FINRA legitimate reasons. FINRA is proposing of any commission must be reported rules to reflect the fact that, initially, separately. FINRA will not be charging transaction- 23 RFI Notice, supra note 9, at 3928. Second, the proposed rule change 24 FINRA rules governing trade reporting of equity level fees on transactions in U.S. would require reporting of a more securities currently require members to report time Treasury Securities reported to TRACE. precise time of execution for to the millisecond if the member captures time to First, the proposed rule change amends transactions in U.S. Treasury Securities that level of granularity. See Rule 6380A, Section 1(b)(2) of Schedule A to the Supplementary Material .04; Rule 6380B, that are executed electronically. A Supplementary Material .04; Rule 6622, FINRA By-Laws to exclude transactions significant portion of the trading activity Supplementary Material .04; see also Regulatory in U.S. Treasury Securities from the in the U.S. Treasury cash market is Notice 14–21 (May 2014). Trading Activity Fee (‘‘TAF’’). Second,
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the proposed rule change amends Rule Government Securities Act Treasuries. Recent events such as the 7730 to exclude transactions in U.S. Amendments of 1993 (‘‘GSAA’’) anomalous price behavior of October 15, Treasury Securities from the TRACE eliminated these statutory limitations.28 2014 have showcased the need for a transaction reporting fees. However, FINRA also believes that the proposed thorough review of the market structure because FINRA will incur costs to rule change is consistent with the by the official sector. The data collected expand the TRACE system and to provisions of Section 15A(b)(9) of the under the proposed rule change will enhance its examination and Act,29 which requires that FINRA rules enable FINRA to enhance monitoring surveillance efforts to monitor its not impose any burden on competition and enforcement of best execution and members’ trading activity in U.S. that is not necessary or appropriate. other broker-dealer obligations Treasury Securities, it is considering the FINRA believes that the proposed rule regarding transactions in Treasuries. appropriate long-term funding approach change creates an effective structure for The data will also be necessary for the for the program and will analyze FINRA members to report transactions official sector to conduct comprehensive potential fee structures once it has more in U.S. Treasury Securities so that market surveillance for Treasuries. As data relating to the size and volume of transaction information is available to summarized by the RFI: ‘‘The need for U.S. Treasury Security reporting. regulators. FINRA believes the proposed more comprehensive official sector Finally, the proposed rule change reporting requirements will significantly access to data, particularly with respect amends Rule 0150 to add the FINRA enhance its, and other regulators’, to U.S. Treasury cash market activity, is Rule 6700 Series to the list of FINRA ability to review transactions in U.S. clear.’’ 30 rules that apply to ‘‘exempted Treasury Securities to identify trading (b) Economic Baseline securities,’’ except municipal securities. activity that may violate applicable laws If the Commission approves the or regulations. FINRA believes that The proposed rule change would proposed rule change, FINRA will leveraging the existing TRACE structure impose reporting requirements on announce the effective date of the and reporting model will reduce the Treasury cash market participants that proposed rule change in a Regulatory burdens on firms to comply with the are FINRA members, extending with Notice to be published no later than 90 new reporting obligations, thus making some modification the TRACE reporting days following Commission approval. the implementation more efficient. requirements to transactions in U.S. The effective date will be no later than Treasury Securities.31 The current 365 days following Commission B. Self-Regulatory Organization’s Treasury cash market structure serves as approval.25 FINRA understands that Statement on Burden on Competition an economic baseline to assess the providing sufficient lead-time between FINRA does not believe that the potential impacts on FINRA members, the publication of technical proposed rule change will result in any non-FINRA members, trading venues specification and the implementation burden on competition that is not and investors. In an effort to rely to the date is critical to firms’ ability to meet necessary or appropriate in furtherance extent possible on empirical evidence, the announced implementation date; of the purposes of the Act. much of the description of current FINRA will work to publish technical activities relies on public evidence, specifications as soon as possible after Economic Impact Assessment primarily collected by regulators for a SEC approval of the proposed rule (a) Need for the Rule period preceding and including the change. As discussed above, the official sector October 15, 2014 event. This information is, in some cases, more than 2. Statutory Basis does not currently receive any regular reporting of Treasury cash market two years old and may not reflect FINRA believes that the proposed rule transactions following auction. There is current practices. These data are change is consistent with the provisions no central database reflecting the supplemented by discussions with a of Section 15A(b)(6) of the Act,26 which trading activities in the market of wide range of market participants. requires, among other things, that FINRA rules must be designed to (i) Overview of Treasury Cash Market 3208 (1986). The GSA, among other things, prevent fraudulent and manipulative amended Section 15A(f) to provide that, ‘‘[e]xcept Broadly, the secondary markets for acts and practices, to promote just and as provided in paragraph (2) of this subsection, Treasuries can be categorized into two equitable principles of trade, and, in nothing in this section shall be construed to apply segments: Cash and futures. The general, to protect investors and the with respect to any transaction by a registered Treasury cash market has been broker or dealer in any exempted security.’’ See bifurcated between the inter-dealer public interest. Prior to 1993, Section Government Securities Act of 1986, Public Law 99– 15A(f) of the Act imposed limitations on 571, 102(g)(1), 100 Stat. 3208 (1986). Paragraph market, in which dealers trade with one a registered security association’s ability (f)(2), which was added by the GSA, provided that another, and the dealer-to-customer to adopt rules applicable to transactions a registered securities association could adopt and market, where customers may include implement rules with respect to exempted 27 asset managers, pension funds, in exempted securities; however, the securities to (1) enforce members’ compliance with the relevant provisions of the Act and rules and insurance companies, and 25 FINRA anticipates staggering the regulations thereunder, (2) adequately discipline its corporations.32 The daily trading implementation dates so that the general reporting members, (3) inspect members’ books and records, volume in the U.S. Treasury cash requirement is implemented before members are and (4) prohibit fraudulent, misleading, deceptive market was estimated to be $510 billion required to include the trade modifiers described and false advertising. Id. for the first two weeks of April 2014 and above. Specific implementation dates will be 28 See Government Securities Act Amendments of announced in the Regulatory Notice. 1993, Public Law 103–202, § 106(b)(1), 107 Stat. $1,214 billion on October 15, 2014, 26 15 U.S.C. 78o–3(b)(6). 2344 (1993). See also NASD Notice to Members 96– 27 Before 1986, Section 15A(f) of the Act provided 66 (October 1996); Securities Exchange Act Release 30 RFI Notice, supra note 9, at 3931. that ‘‘[n]othing in this section shall be construed to No. 37588 (August 20, 1996), 61 FR 44100 (August 31 TRACE currently covers corporate debt apply with respect to any transaction by a broker 27, 1996) (Order Approving File No. SR–NASD–95– securities, agency debentures, asset- and mortgage- or dealer in any exempted security.’’ See 15 U.S.C. 39). Although the GSAA also included a provision backed securities. 78o–3 (historical notes). In 1986, the Government explicitly prohibiting the SEC from adopting regular 32 As discussed further below, firms in the inter- Securities Act of 1986 (‘‘GSA’’) established a federal reporting requirements, the GSAA included no such dealer market can be grouped into several broad system for the regulation of brokers and dealers prohibition on FINRA. See Government Securities categories: Bank dealer, non-bank dealer, hedge who transact business in government securities and Act Amendments of 1993, Public Law 103–202, fund, asset manager, and PTFs. They may or may certain other exempted securities. See Government 103(a), 107 Stat. 2344 (1993). not be FINRA members. See JSR, supra note 5, at Securities Act of 1986, Public Law 99–571, 100 Stat. 29 15 U.S.C. 78o–3(b)(9). 12.
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when trading volume reached a record the dealer-to-customer activity still accounted for more than 50% of the high.33 The inter-dealer market takes place over the phone (voice). An total trading volume across various accounted for approximately 45% of the ad hoc survey of trading activity of the maturities in the cash market, while trading volume for the first two weeks largest dealers, estimated to represent bank-dealers accounted for roughly 30 of April 2014 and 53% for October 15, more than half of overall dealer-to- to 40% of volume in the cash market.45 34 2014. Traders in the cash market seek customer activity, revealed that voice When asked, market participants offer to establish positions as an investment trading remains an important protocol 39 a wide range of estimates of the and an effective hedge for other for executing customer trades. An percentage of cash market activities positions. Trading in the cash market estimated 62% of this dealer-to- conducted by FINRA members in the also reflects short term funding customer trading volume still takes Treasury market. These estimates range activities, in the form of repurchase place over the phone on normal trading from 25%–65% of the dollar volume, agreements. Trading strategies may also days, with the remaining 38% occurring with most participants indicating that include simultaneous trades of different via RFQ systems.40 The dealer-to- cash Treasury securities or cash and customer market serves an important broker-dealers remain particularly futures in order to hedge interest rate role in liquidity provision for older, active in on-the-run trading. risk or arbitrage away small pricing ‘‘off-the-run’’ issues and other less While bank-dealers may account for a discrepancies. liquid securities. For example, the minority share of trading volume in the The inter-dealer market is dominated average daily trading volume on inter-dealer market, they trade by automated trading, sometimes in TradeWeb and Bloomberg was significant volume directly with their large volumes and at high speed. The estimated to be $22 billion for on-the- customers. The Federal Reserve Bank of primary locations for price discovery in runs and $25 billion for off-the-runs New York designated 23 primary the Treasury cash market are the during April 2–17, 2014.41 dealers to serve as trading electronic trading platforms BrokerTec counterparties in its implementation of (ii) Treasury Cash Market Participants and eSpeed, which utilize a central monetary policy.46 These primary limit order book (‘‘CLOB’’) protocol.35 As reported by the JSR, participants of dealers are included in the bank-dealer These platforms are operated by broker- the inter-dealer market can be grouped category of the JSR. Data reported to the dealers or affiliates of broker-dealers into several broad categories based on Federal Reserve Bank of New York by that are registered with the SEC and are their business model and corporate the primary dealers show that over the FINRA members. In the inter-dealer structure: Bank-dealer, non-bank dealer, first three quarters of 2015, average market, the majority of trading occurs in hedge fund, asset manager, and PTFs.42 daily activity of these dealers in the the most recently issued Treasuries, PTFs are increasingly prevalent and dealer-to-customer market was $292 known as ‘‘on-the-run’’ securities. While now account for the majority of trading billion.47 Out of the 23 primary dealers, on-the-runs are the most actively traded and standing quotes in the order book 21 are broker-dealer FINRA members Treasuries, likely accounting for more of the inter-dealer cash market.43 By and would be subject to the proposed than half of total daily trading volumes, contrast, bank-dealers still account for a reporting requirements. FINRA they make up less than 5% of majority of secondary cash market understands that bank holding outstanding marketable Treasuries.36 trading overall (when including dealer- companies that also include a broker- The dealer-to-customer market has to-customer trading), but they constitute dealer affiliate typically conduct the less visibility to regulators and many well under half of the trading and majority of the trading through the market participants. In contrast to the quoting activity in the inter-dealer cash broker-dealer. The bank-regulated 44 inter-dealer market, a significant portion market. For example, in the inter- dealer’s activities are typically limited of trading in the dealer-to-customer dealer market on October 15, 2014, PTFs to investment for its own portfolios or market occurs on platforms that for hedging purposes. In addition, the facilitate the matching of buy and sell Customer Markets on October 15, 2014, presented at the conference of the Evolving Structure of the broker-dealer affiliate may enter orders primarily through request for U.S. Treasury Market (October 20–21, 2015) repurchase agreement transactions with quote (‘‘RFQ’’) systems. These platforms (‘‘Preliminary Look’’) available at https:// the bank-regulated dealer, and the bank- are increasingly electronic, but are www.newyorkfed.org/medialibrary/media/ regulated dealer then reverses the generally not conducive to high newsevents/events/markets/2015/October-15- Dealer-to-Customer-Analysis.pdf. Treasuries out to its customers. frequency trading strategies.37 The 39 See Primary Dealer Participation, supra note To assess the potential impact of the major RFQ platforms for Treasuries are 33. proposed rule change, it may also be TradeWeb and Bloomberg.38 Much of 40 See Primary Dealer Participation, supra note 33. useful to examine the proportion of 41 33 See Federal Reserve Bank of New York, See Preliminary Look, supra note 38. government securities brokers (‘‘GSBs’’) Michael Fleming, Frank Keane and Ernst 42 See JSR, supra note 5, at 12. When referring to or government securities dealers Schaumburg, Primary Dealer Participation in the findings from the JSR or other source material citing (‘‘GSDs’’) that would be subject to the Secondary U.S. Treasury Market, Liberty Street to the JSR, this filing relies on the entity definitions proposed reporting requirements. GSBs Economics, February 12, 2016 (‘‘Primary Dealer in the JSR. In its description of market participants, Participation’’) available at http:// the JSR does not attempt to separate FINRA-member and GSDs are designations used by libertystreeteconomics.newyorkfed.org/2016/02/ broker-dealers from other participants. Bank-dealers FINRA and bank regulators for regulated primary-dealer-participation-in-the-secondary-us- include FINRA members, their affiliates and dealers entities acting as brokers or dealers in supervised by federal or state banking regulators. treasury-market.html#.V4hpXvkrJD8. the government securities markets. 34 Elsewhere, this filing refers to FINRA-member Id. broker dealers as firms, FINRA members or broker- Approximately 1,260 FINRA members 35 RFI Notice, supra note 9, at 3929. dealers and other dealers as bank-regulated dealers. identified themselves as GSBs or GSDs 36 Chris Cameron, James Clark and Gabriel Mann, 43 See James Clark and Gabriel Mann, A Deeper Examining Liquidity in On-the-Run and Off-the-Run Look at Liquidity Conditions in the Treasury Treasury Securities, Treasury Notes (blog) (May 20, Market, Treasury Notes (blog) (May 6, 2016), 45 See JSR, supra note 5, at 21. 2016), available at https://www.treasury.gov/ available at https://www.treasury.gov/connect/blog/ 46 See Federal Reserve Bank of New York, connect/blog/Pages/Examining-Liquidity-in-On-the- Pages/A-Deeper-Look-at-Liquidity-Conditions-in- Primary Dealers List, available at https:// Run-and-Off-the-Run-Treasury-Securities.aspx. the-Treasury-Market.aspx. www.newyorkfed.org/markets/pridealers_ 37 RFI Notice, supra note 9, at 3928. 44 Id. The article cites the JSR and does not current.html. 38 See Federal Reserve Bank of New York, Ernst attempt to separate FINRA members from dealers 47 See Primary Dealer Participation, supra note Schaumburg, A Preliminary Look at Dealer-to- supervised by federal or state banking regulators. 33.
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on Form BD.48 FINRA understands that The technical and operational costs reporting, as traders at FINRA-member there are at least 23 non-FINRA associated with reporting Treasury cash firms must apply the modifiers correctly members that registered as GSDs with market transactions are likely to vary and consistently to ensure meaningful their respective federal banking across firms. For FINRA-member firms data collection. Larger firms indicated regulators. These entities are regulated that are already reporting to TRACE, the that Treasuries are typically traded by the Office of the Comptroller of the costs associated with reporting U.S. across many desks within the firm and Currency (19 firms), the Federal Reserve Treasury Security transactions may be this increases compliance costs because (three firms), or the Federal Deposit more limited. Within FINRA members the new modifiers need to be identified Insurance Corporation (one firm). that would be required to report by individual traders, as they are Treasury cash market transactions, some uniquely situated to know whether a (c) Economic Impacts are already reporting transactions in specific trade is associated with a cross- (i) Benefits TRACE-Eligible Securities. These firms instrument strategy that would require The primary benefits from the may be able to use or otherwise leverage the modifier. Some firms also suggested proposed rule change arise from better the TRACE infrastructure and the that it may be difficult for a trader to monitoring of the Treasuries markets associated compliance framework for know at the time of a trade whether it and participants by regulators. As U.S. Treasury Securities and reduce is part of a cross-instrument strategy, discussed above, the primary locations costs associated with the proposed rule thus increasing complexity and their for price discovery in the Treasury cash change. For example, out of the FINRA regulatory risk. Moreover, some firms market are FINRA members, and members that identified themselves as indicated to FINRA that the costs transactions on those platforms would GSBs or GSDs on Form BD, more than associated with the expansion of current be subject to the proposed reporting 70% had TRACE reporting activities systems to accommodate the proposed requirements. Therefore, the proposed between June 2015 and May 2016. new trade indicator and modifiers may data collection is expected to capture a Based on conversations with market be substantial. FINRA notes that it plans significant portion of transactions in the participants, some current TRACE to phase in the modifiers to simplify the inter-dealer Treasury cash market. reporters will have much higher volume immediate implementation of the Further, since 21 of the 23 primary of reported transactions. proposed rule change and provide firms dealers are FINRA members, the data Based on the review of TRACE additional time to make the necessary collection will shed light on the less reporting for the year June 2015 through changes to implement the new transparent dealer-to-customer market May 2016, FINRA identified 338 modifiers. and the trading of less liquid off-the-run FINRA-member firms registered as GSBs Based on conversations with market securities. The data will improve the or GSDs with no reported TRACE participants, another potential challenge official sector’s general monitoring and transactions. FINRA does not have any for some firms is to update their systems surveillance capabilities, including data to measure the extent of these to meet the requirement that the yield those designed to detect disruptive firms’ activities in the Treasury market reported by a member for a When-Issued trading practices or risks to market today. For these firms that are active in Transaction must include any mark-up stability. The proposed rule change will the Treasury cash market but currently or mark-down. FINRA understands that assist in the analysis of specific market not subject to TRACE reporting there may be differences in current events or trends, and provide regulators requirements, the costs may be more practices as to whether mark-ups and with the data to better evaluate how significant as the firms will need to mark-downs are captured at the time of policy decisions may be expected to develop new reporting systems or enter a When-Issued Transaction. Those firms impact the market. Collectively, these into agreements with third parties to that do not currently capture this should strengthen the Treasury cash report and to develop and maintain information will incur additional costs market microstructure, reduce regulatory compliance programs with in meeting this condition of the manipulative activities, and enhance respect to the new reporting proposed rule. investor protection. Moreover, the requirements. Finally, all FINRA-member firms proposed data collection will permit The larger inter-dealer platforms have subject to the proposed rule change indicated to FINRA that the operational FINRA to better monitor for compliance would need to establish policies and challenges with collecting and with its own rules. FINRA believes that procedures and monitor ongoing delivering trade reporting may be using the existing TRACE reporting reporting activities to ensure material but not unduly large. A infrastructure is an efficient and cost compliance with the reporting potential challenge for some platforms effective mechanism to collect the data. requirements. may be to update and maintain The proposed rule change does not (ii) Potential Direct Costs counterparty identification systems to contemplate any direct assessments to FINRA understands that the proposed meet the reporting requirements. firms reporting U.S. Treasury Security rule change is associated with potential For introducing firms, FINRA transactions to TRACE, as is required for direct and indirect costs. Direct costs understands that clearing firms and other TRACE reportable events. But would be born primarily by FINRA- service providers will be able to offer FINRA notes that it may seek to collect member firms with new reporting regulatory reporting in U.S. Treasury transaction or other forms of fees from obligations or the clearing firms or other Securities as they do currently for reporting firms in the future, subject to service providers who would report on TRACE-Eligible Securities. Introducing a separate rule filing with the SEC. their behalf. firms may need to enhance their systems to provide the additional (iii) Potential Indirect Costs 48 General-purpose broker-dealers that conduct a information necessary to complete a FINRA has identified several sources government securities business must note this trade report. FINRA understands that of potential indirect costs. Although the activity on their Form BD if it accounts for at least these firms will also incur additional data collection is expected to capture a 1% of annual revenue from the securities or service costs, typically based on the significant portion of the Treasury cash investment advisory business. It is possible that some broker-dealers trade government securities in trade volume reported on their behalf. market, not all participants in this small sizes without self-identifying as GSBs or The new modifiers may introduce market are FINRA members, and this GSDs. additional complexity to the proposed fact may impact the proposed rule
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change in different ways. First, the inter-dealer trading out of the large collecting the information (such as official sector may not be able to obtain inter-dealer platforms in order to avoid batch file submissions); however, such a a complete picture of Treasury cash reporting. The access to deep liquidity process would require creation and market activities, thereby potentially and the ability to transact when desired maintenance of an additional, parallel limiting the benefits of the proposed are deemed to be more valuable than the infrastructure by all affected firms as rule change. Specifically, the proposed gain from anonymity. well as FINRA, providing for a costlier rule change only requires that FINRA- The proposed rule change may also implementation and ongoing support. member firms be identified uniquely in have other indirect impacts on the Some firms may find it more cost the trade report. Thus, regulators would Treasury cash market. If the reporting effective to report trades singularly not be able to assign trading activity costs are significant, they potentially throughout the day, while others may directly or uniquely to other market may raise barriers to entry and reduce prefer providing trade reports at fixed participants or reasonably estimate participation of FINRA members in the intervals, allowing firms sufficient time positions in government securities to Treasury cash market. The depth of the to ensure the accuracy of the transaction those firms. This impediment may be ‘‘on the run’’ Treasury market, in information prior to submitting the mitigated by the authorities of particular, suggests that dealers face low information to FINRA. FINRA notes that regulators, particularly bank regulators, margins in these securities, and any much of the benefits of batch-reporting to monitor the activities of market material additional regulatory costs may can be achieved by providing an end-of- participants under their immediate be a more significant impediment where day reporting timeframe. jurisdictions. But, FINRA notes that the firm does not have extensive activity The existing TRACE reporting some PTFs and hedge funds do not have in Treasuries or can mutualize the framework requires that if there are two a primary prudential regulator, although regulatory costs through a third party FINRA members executing a trade (one regulators can gather identity and provider. Moreover, depending on the as the buyer and one as the seller), both trading information of PTFs and hedge competitiveness of the Treasury cash FINRA members must report. Several funds directly from the market market, some FINRA-member firms may commenters to the RFI advocated for participants under their jurisdiction. transfer the costs to customers and one-sided reporting rather than two- Second, the proposed reporting thereby increase transaction costs. sided reporting. FINRA determined that requirements may create competitive (d) Alternatives Considered maintaining the two-sided reporting disadvantage for FINRA members. This framework is preferable and will allow disadvantage may arise in several FINRA evaluated various options FINRA to compare the information related contexts. First, the proposed rule around implementing reporting as reported by each party to identify change would impose operational and proposed. FINRA reviewed its existing discrepancies or potential non-reporting compliance costs avoided by some reporting facilities as well as alternative by one party. Moreover, accommodating options such as periodic batch-reporting competitors. Second, regulators will one-sided reporting would necessitate and file submissions. have a greater ability to monitor the significant changes to the existing Given the intended coverage, FINRA Treasury cash market activity of those TRACE infrastructure that could affect firms uniquely identified in TRACE determined that TRACE provided the most efficient and cost effective way of all TRACE reporting firms and reporting. These firms’ Treasury trading significantly reduce the benefits to using may face higher regulatory scrutiny than implementing the requirement for several reasons. First, the reporting an existing system described above. In firms not so identified or lacking a addition, FINRA believes the burdens to primary prudential regulator. These structure that has been developed and implemented for other fixed income firms of two-sided reporting can be firms may incur greater costs in reduced because TRACE allows for one responding to regulators’ inquiries and securities can be extended to U.S. Treasury Securities with minor participant to report on behalf of other compliance-related activities. another, provided the two parties have Firms reporting to TRACE might also modifications. Second, the infrastructure supporting TRACE is proper agreements in place to allow the find that dealers that are not required to party to report on the other party’s report their transactions in U.S. already in use by a significant portion of FINRA members affected by the behalf. Any such arrangements are Treasury Securities may try to leverage voluntary, and each participant the lack of reporting as a competitive proposal such that these members have connectivity established and currently (including ATSs) can determine if they advantage with customers. Customers would like to provide this service to its may migrate their business from FINRA- report to the facility. In addition to the trading partners or subscribers. member firms to other dealers if they transaction reporting infrastructure believe there is value to avoiding itself, FINRA as well as member firms C. Self-Regulatory Organization’s surveillance. Further, even FINRA- have developed supporting processes Statement on Comments on the member firms may seek to migrate their around the TRACE facility that can be Proposed Rule Change Received From government securities business to leveraged, such as monitoring tools, Members, Participants, or Others affiliates that are not FINRA members if compliance processes, and alerts. Written comments on the proposed Among other alternatives, FINRA they determine there is a net benefit to rule change were neither solicited nor considered other existing FINRA trade do so. received; however, the Treasury Dept. reporting facilities, including the OTC However, as noted above, the received numerous comments in Reporting Facility and the Alternative Treasury Dept. stated that it would response to the RFI addressing reporting Display Facility, that support develop a plan for collecting similar requirements for transactions in transaction reporting for equity data from non-FINRA members active in Treasuries. Fifty-two comments were securities and concluded these facilities the Treasury cash market. In addition, submitted. Approximately 30 letters FINRA understands from market were not suitable for reporting of addressed reporting to the official sector participants that these competitive transactions in U.S. Treasury Securities or public dissemination.49 impacts are likely small. For instance, and that TRACE, with its existing market participants do not generally reporting protocols and framework, was 49 The RFI Notice and all of the comment letters believe that regulatory reporting, by preferable. FINRA also considered submitted in response to the RFI Notice are itself, would lead non-reporters to shift developing an alternative processes of available at https://www.regulations.gov/
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As noted above, Section III of the RFI reporting additional information on transactions may increase the overall emphasized the need for more Treasury cash market activity.’’ 53 number of errors, it also provides comprehensive official sector access to Several commenters to the RFI FINRA with a means to validate reports transaction data for Treasuries and provided views on specific reporting that does not exist if a single party requested comment on the types of data requirements. Industry participants reports the transaction. FINRA believes that should be made available to the expressed the view that a single-side that the overall benefits to the audit trail official sector regarding the Treasury reporting obligation was preferable to of requiring multiple reports outweigh cash securities market and on numerous having multiple counterparties or the costs, particularly since FINRA is practical considerations associated with venues report the same transaction; 54 proposing to initially exempt reports in gathering that data. The RFI noted that however, one commenter suggested U.S. Treasury Securities from the ‘‘[t]he need for more comprehensive using a two-sided reporting structure.55 TRACE trade reporting fees. official sector access to data, Those commenters expressing support There was widespread support among particularly with respect to U.S. for single-side reporting often also the commenters to extend reporting Treasury cash market activity, is suggested that trades conducted on a obligations to all Treasury securities clear.’’ 50 Section III solicited views on trading platform be reported by the rather than a defined subset.59 The ways to collect, aggregate, and monitor trading platform rather than the suggested timing of submitting trade data but also included questions on counterparties; 56 however, this view reports varied between those generally additional infrastructure that would be was not unanimous.57 MFA suggested urging real-time reporting,60 delayed necessary for market participants to that requiring all Treasury cash market reporting,61 or a combination thereof begin reporting data, especially given participants to report ‘‘would be depending upon the type of security.62 the diversity of trading venues in the extremely costly and burdensome for As one commenter noted, the timing of Treasury markets and the fact that managers/funds . . . and could deter trade report submission is also trading activity in these markets ‘‘often some market participants from trading influenced by the purpose: Reporting 58 extends beyond individual regulator in the Treasury cash markets.’’ solely for regulatory purposes does not boundaries.’’ 51 Section III included As noted above, the proposed rule require the immediacy that would be questions concerning the scope of change follows the current TRACE necessary if post-trade market potential transaction reporting reporting structure requiring that any transparency were also a goal.63 obligations and market participant Party to the Transaction that is a FINRA As discussed above, FINRA is obligations, numerous specific Member report the transaction to proposing to impose reporting questions on the mechanics of trade TRACE; therefore, if two or more FINRA obligations on all Treasuries with the reporting, and questions as to whether members are Parties to the Transaction, exception of savings bonds, which are additional data (e.g., orders, quotes) each member will have an independent not generally traded in the secondary obligation to report the transaction to should be reported.52 market; thus, the proposed reporting TRACE. FINRA believes that this requirements would apply to all Approximately 26 commenters reporting structure helps to ensure the marketable Treasuries and all expressed some level of support for accuracy of reported transactions and, transactions in those securities with the official sector reporting. As the Treasury as a result, significantly enhances the exceptions of purchases in the initial Dept. noted, ‘‘[t]he responses to the RFI quality of the audit trail. Although auction, repurchase transactions, and expressed broad support for more requiring multiple reports for some reverse repurchase transactions. comprehensive reporting to regulators, including nearly unanimous support for 53 Treasury Press Release, supra note 12. 59 See Citadel, at 10; FIA PTG, at 3; ICAP, at 6; 54 See Citadel, at 11 (suggesting that ‘‘single-sided MMI, at 10; Nasdaq, at 6; Prudential, at 13; document?D=TREAS-DO-2015-0013-0001. The reporting (i.e., where each transaction is only Tripathy, at 5; Wells Fargo, at 5. following comment letters are specifically cited reported by one party) has proven successful in 60 See Citadel, at 10–11; Tradeweb, at 5 (‘‘Such below: Letters to David R. Pearl, Office of the reducing complexity and data discrepancies under reporting should occur as frequently as real-time, Executive Secretary, Treasury Dept., from Citadel the CFTC’s reporting regime for swaps’’); MFA, at although the implementation and phasing of any LLC (April 22, 2016) (‘‘Citadel’’); Direct Match 5 (‘‘On a practical level, it would also be much reporting requirement should be carefully evaluated (April 22, 2016) (‘‘Direct Match’’); Federal Reserve easier, more efficient and cost-effective to with respect to the cost and the technical build Bank of Chicago (May 5, 2016) (‘‘FRB Chicago’’); implement a single-sided reporting regime that required.’’). FIA Principal Traders Group (April 22, 2016) (‘‘FIA requires trading platforms and intermediaries to 61 See FIA PTG, at 30 (recognizing that, while PTG’’); ICAP plc (April 22, 2016) (‘‘ICAP’’); report transactions.’’); RBS Securities, at 7 (‘‘RBS real-time reporting may be an end goal, ‘‘a Investment Company Institute (April 8, 2016) notes that based on experience in other regulatory reasonable standard would target the end-of- (‘‘ICI’’); KCG Holdings, Inc. (April 28, 2016) frameworks, bilateral reporting substantially trading-day as a starting point for reporting (‘‘KCG’’); Andrei Kirilenko, Director, Centre for increases the required technology and controls for objectives’’); MarketAxess, at 3 (‘‘T+1 reporting is Global Finance and Technology, Imperial College compliance, with minimal additional benefit to the sufficient to ensure that regulators have a timely Business School (April 22, 2016) (‘‘Kirilenko’’); regulator or public.’’); SIFMA AMG, at 4 (arguing picture of market activity and that firms have Managed Funds Association (April 22, 2016) that a ‘‘‘one-sided’ approach is more operationally sufficient time to deliver the required level of (‘‘MFA’’); MarketAxess Holdings, Inc. and Xtracker efficient and reduces the risk of trade reporting accuracy.’’); Prudential, at 16. Ltd. (April 21, 2016) (‘‘MarketAxess’’); Modern errors’’). See also FIA PTG, at 23; Prudential, at 14; 62 See Morgan Stanley, at 3 (‘‘Timing Markets Initiative (April 22, 2016) (‘‘MMI’’); Morgan Tradeweb, at 5. requirements should vary based on transaction Stanley & Co. (April 22, 2016) (‘‘Morgan Stanley’’); 55 See Kirilenko, at 1. type, e.g., illiquid investments should have a longer Nasdaq, Inc. (April 22, 2016) (‘‘Nasdaq’’); 56 See FIA PTG, at 23 (‘‘Wherever possible, the time to report.’’) Virtu, at 2 (suggesting real-time Prudential Fixed Income (April 21, 2016) official sector should use information provided by reporting for ‘‘electronically matched on-the-run (‘‘Prudential’’); RBS Securities Inc. (April 22, 2016) trading venues and depositories to support its trades,’’ five-minute reporting for manual trades, (‘‘RBS Securities’’); SIFMA, Asset Management information gathering.’’); MFA, at 4 (stating their fifteen-minute reporting for ‘‘trades in excess of a Group (April 22, 2016) (‘‘SIFMA AMG’’); SIFMA view that ‘‘reporting should be by trading platforms, specified volume threshold in on-the-run and American Bankers Association (April 22, 2016) dealers and market makers/principal trading firms’’ Treasuries,’’ and ‘‘an extended reporting window’’ (‘‘SIFMA/ABA’’); Tradeweb Markets LLC (April 22, because these entities ‘‘are in the best position to for off-the-run Treasuries). Those in favor of real- 2016) (‘‘Tradeweb’’); Rakesh Tripathy (March 22, efficiently provide streamlined data to regulators’’). time reporting—and generally real-time public 2016) (‘‘Tripathy’’); Virtu Financial, Inc. (March 18, 57 See MarketAxess, at 3 (‘‘We would recommend dissemination—recognized the need for some 2016) (‘‘Virtu’’); Wells Fargo & Company (April 21, placing the reporting responsibility on the exceptions. Citadel, for example, suggested 2016) (‘‘Wells Fargo’’). counterparties to the trade rather than on the venue exceptions of 15 to 30 minutes for block 50 See RFI Notice, supra note 9, at 3931. . . . so that firms have a single process, regardless transactions and less liquid off-the-run securities. 51 See RFI Notice, supra note 9, at 3931–32. of how and where the trade is executed.’’). See Citadel, at 11. 52 See RFI Notice, supra note 9, at 3932–33. 58 MFA, at 5. 63 See MarketAxess, at 2.
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Because FINRA is not currently As discussed above, the proposed rule Venues, etc.).’’ 73 Direct Match noted proposing to disseminate any trade-level change largely extends to transactions in that lack of consistency could create information to the public regarding U.S. Treasury Securities the existing regulatory arbitrage opportunities that transactions in U.S. Treasury Securities, TRACE reporting fields, which include could result in market changes.74 the proposed rule change generally settlement date, category of As noted above, after reviewing the imposes a same-day reporting counterparties, and in some cases the comments, the Treasury Dept. and the requirement as opposed to a more trading venue (e.g., alternative trading SEC requested that FINRA consider a immediate requirement, such as 15 system (‘‘ATS’’) identifiers if the ATS proposal to require its members to minutes. FINRA believes an end-of-day does not also report the transaction). As report Treasury cash market or next-day timing requirement strikes noted, FINRA is proposing two new transactions to a centralized repository. an appropriate balance between modifiers to capture information on FINRA has filed the proposed rule ensuring timely access by regulators to transactions that are part of larger change in response to that request. the transaction data without imposing trading strategies. FINRA believes that, Although the proposed rule change unnecessary requirements on reporting initially, the new fields and modifiers it would apply only to FINRA members, firms. Permitting end-of-day or next-day is proposing are sufficient for the Treasury Dept. noted that it ‘‘will reporting will also provide members surveillance and review of transaction continue working with other agencies with additional time to submit their activity; however, FINRA will monitor and authorities to develop a plan for filings and, if necessary, make any the information once reporting begins to collecting similar data from institutions corrections to their trade reports before determine whether additional who actively trade U.S. Treasury submission. This flexibility will provide transaction information may be needed securities but are not FINRA members with more choices in how to to enhance the audit trail and its members.’’ 75 comply with the reporting requirements, surveillance program. and FINRA believes this flexibility Multiple commenters suggested that III. Date of Effectiveness of the should reduce the burdens on firms in any reporting requirement should span Proposed Rule Change and Timing for complying with the new reporting across all market participants, and some Commission Action requirements and improve the accuracy commenters specifically noted the of trade reports, particularly given the Within 45 days of the date of importance of regulatory cooperation, as high volumes in which U.S. Treasury publication of this notice in the Federal a benefit for both regulators and for Register or within such longer period (i) Securities are traded. 70 Relatively few commenters provided reporting firms. FRB Chicago noted as the Commission may designate up to views on specific elements that should the current lack of regulation for the 90 days of such date if it finds such be reported to the official sector. In Treasury market and called for longer period to be appropriate and addition to the general transaction coordinated efforts to ‘‘harmonize the publishes its reasons for so finding or information necessary for effective processes observed in the U.S. Treasury (ii) as to which the self-regulatory markets around trading, clearing and organization consents, the Commission transaction reporting (e.g., security, 71 side, size, price, time), some reporting requirements.’’ SIFMA shall: (a) By order approve or commenters suggested including: noted that reporting requirements ‘‘must disapprove such proposed rule change, • Trading venue; 64 meet the desire to provide the official or (b) institute proceedings to determine • settlement date; 65 sector with a comprehensive and whether the proposed rule change • category of counterparty; 66 expedient view of the markets’’ while should be disapproved. • type of trading protocol; 67 also recognizing the burdens that • whether the transaction was reporting requirements could impose.72 IV. Solicitation of Comments 68 cleared; and Similarly, MMI noted that the Interested persons are invited to • whether the trade was part of a requirements must ‘‘cast an all- submit written data, views, and package transaction.69 encompassing net’’ so that regulators arguments concerning the foregoing, have a comprehensive view of market including whether the proposed rule 64 See Citadel, at 11; Direct Match, at 11; Morgan activity and suggested that regulators change is consistent with the Act. Stanley, at 3; Tradeweb, at 5. ‘‘must have a complete picture of order, 65 Comments may be submitted by any of See Morgan Stanley, at 2. MarketAxess noted indicative pricing, RFQ responses and that settlement date is not a current field for MiFID the following methods: transaction reporting in Europe but noted that a trade data across all instruments (cash settlement date ‘‘beyond the standard settlement and futures) all sectors (on-the-run and Electronic Comments cycle may impact the agreed price, so there may be off-the-run) all methods (electronic and • value in collecting that information, depending on voice) and all platforms (IDBs, D2C Use the Commission’s Internet the ultimate purpose of the reporting regime.’’ comment form (http://www.sec.gov/ MarketAxess, at 4; see also FIA PTG, at 27 (noting rules/sro.shtml); or that non-standard settlement dates may have 70 See Direct Match, at 10; FRB Chicago, at 5; ICI, reporting value). at 4–5; KCG, at 3; MFA, at 4; MMI, at 10; SIFMA • Send an email to rule-comments@ 66 See Morgan Stanley, at 3. AMG, at 3–4; SIFMA/ABA, at 10. ICI explicitly sec.gov. Please include File No. SR– 67 See Citadel, at 11 (suggesting examples of noted the benefits to both regulators and reporters: FINRA–2016–027 on the subject line. ‘‘voice, electronic RFQ, or CLOB [central limit order Regulatory coordination will enhance the ability book]’’). of Treasury, as well as other regulators, to conduct 68 See Citadel, at 11. more comprehensive analysis and surveillance of 73 MMI, at 10. See also SIFMA AMG, at 4 69 See Citadel, at 11. Citadel noted that common trading in the Treasury markets by obtaining a (‘‘[M]andating, establishing, and implementing an package transactions involving Treasuries include broader view of these integrated markets, and official sector reporting regime requires spread overs (an interest rate swap and a Treasury), increase regulators’ ability to obtain higher quality coordination across markets and jurisdictions.’’) curves (two Treasuries of different maturities), and more consistent data. A coordinated 74 See Direct Match, at 10 (‘‘[I]n a market as butterflies (three Treasuries of different maturities), rulemaking effort will help minimize compliance fragmented and as lightly-regulated as the one for and exchange for physicals (a future and a costs for market participants, to the extent they can Treasuries, the potential for adverse second order Treasury). Citadel also suggested that ‘‘to utilize existing reporting infrastructures and effects is substantial: In the event that regulations distinguish between different types of packages, requirements to meet any new reporting obligations disadvantage a particular market segment, it is very data should also be collected on how many legs are that Treasury may impose. ICI, at 5. easy for trading to move to another, or to create a associated with the specific package transaction and 71 FRB Chicago, at 5. new one.’’). the instruments involved.’’ 72 SIFMA/ABA, at 10. 75 Treasury Press Release, supra note 12.
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Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Statement of the Purpose of, and the • COMMISSION Send paper comments in triplicate Statutory Basis for, the Proposed Rule to Brent J. Fields, Secretary, Securities [Release No. 34–78360; File No. SR– Change and Exchange Commission, 100 F Street NASDAQ–2016–096] NE., Washington, DC 20549–1090. 1. Purpose The Exchange proposes to increase All submissions should refer to File No. Self-Regulatory Organizations; The the ORF from $0.0019 to $0.0021 as of SR–FINRA–2016–027. This file number NASDAQ Stock Market LLC; Notice of August 1, 2016 to account for a should be included on the subject line Filing and Immediate Effectiveness of Proposed Rule Change To Make reduction in market volume the if email is used. To help the Adjustments to Nasdaq’s Options Exchange has experienced. The Commission process and review your Regulatory Fee Exchange’s proposed change to the ORF comments more efficiently, please use should balance the Exchange’s only one method. The Commission will July 19, 2016. regulatory revenue against the post all comments on the Commission’s Pursuant to Section 19(b)(1) of the anticipated revenue [sic]. Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934 Background rules/sro.shtml). Copies of the (‘‘Act’’), 1 and Rule 19b–4 thereunder,2 submission, all subsequent notice is hereby given that on July 6, The ORF is assessed to each member amendments, all written statements 2016, The NASDAQ Stock Market LLC for all options transactions executed or with respect to the proposed rule (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the cleared by the member that are cleared change that are filed with the Securities and Exchange Commission at The Options Clearing Corporation Commission, and all written (‘‘SEC’’ or ‘‘Commission’’) the proposed (‘‘OCC’’) in the Customer range (i.e., that communications relating to the rule change as described in Items I, II, clear in the Customer account of the proposed rule change between the and III, below, which Items have been member’s clearing firm at OCC). The Commission and any person, other than prepared by the Exchange. The Exchange monitors the amount of those that may be withheld from the Commission is publishing this notice to revenue collected from the ORF to public in accordance with the solicit comments on the proposed rule ensure that it, in combination with other provisions of 5 U.S.C. 552, will be change from interested persons. regulatory fees and fines, does not available for Web site viewing and exceed regulatory costs. The ORF is I. Self-Regulatory Organization’s imposed upon all transactions executed printing in the Commission’s Public Statement of the Terms of Substance of by a member, even if such transactions Reference Room, 100 F Street NE., the Proposed Rule Change do not take place on the Exchange.3 The Washington, DC 20549 on official ORF also includes options transactions The Exchange proposes to make business days between the hours of that are not executed by an Exchange adjustments to its Options Regulatory 10:00 a.m. and 3:00 p.m. Copies of such member but are ultimately cleared by an Fee (‘‘ORF’’) by amending NASDAQ filing also will be available for Exchange member.4 The ORF is not Options Market LLC (‘‘NOM’’) Rules at inspection and copying at the principal charged for member proprietary options Chapter XV, Section 5. office of FINRA. All comments received transactions because members incur the will be posted without change; the While the changes proposed herein costs of owning memberships and Commission does not edit personal are effective upon filing, the Exchange through their memberships are charged identifying information from has designated the amendments become transaction fees, dues and other fees that submissions. You should submit only operative on August 1, 2016. are not applicable to non-members. The information that you wish to make The text of the proposed rule change dues and fees paid by members go into available publicly. All submissions is available on the Exchange’s Web site the general funds of the Exchange, a should refer to File No. SR–FINRA– at http://nasdaq.cchwallstreet.com, at portion of which is used to help pay the 2016–027, and should be submitted on the principal office of the Exchange, and costs of regulation. The ORF is collected or before August 15, 2016. at the Commission’s Public Reference indirectly from members through their clearing firms by OCC on behalf of the For the Commission, by the Division of Room. Exchange. Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s authority.76 The ORF is designed to recover a Statement of the Purpose of, and portion of the costs to the Exchange of Robert W. Errett, Statutory Basis for, the Proposed Rule the supervision and regulation of its Deputy Secretary. Change [FR Doc. 2016–17446 Filed 7–22–16; 8:45 am] 3 The ORF applies to all ‘‘C’’ account origin code In its filing with the Commission, the orders executed by a member on the Exchange. BILLING CODE 8011–01–P Exchange included statements Exchange Rules require each member to record the concerning the purpose of and basis for appropriate account origin code on all orders at the the proposed rule change and discussed time of entry in order to allow the Exchange to properly prioritize and route orders and assess any comments it received on the transaction fees pursuant to the Rules of the proposed rule change. The text of these Exchange and report resulting transactions to OCC. statements may be examined at the 4 In the case where one member both executes a places specified in Item IV below. The transaction and clears the transaction, the ORF is assessed to the member only once on the execution. Exchange has prepared summaries, set In the case where one member executes a forth in sections A, B, and C below, of transaction and a different member clears the the most significant aspects of such transaction, the ORF is assessed only to the member statements. who executes the transaction and is not assessed to the member who clears the transaction. In the case where a non-member executes a transaction and a 1 15 U.S.C. 78s(b)(1). member clears the transaction, the ORF is assessed 76 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. to the member who clears the transaction.
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members, including performing routine anticipated regulatory costs. While these marketplace for violations of Exchange surveillances, investigations, adjustments result in an increase, the Rules. The ORF assists the Exchange to examinations, financial monitoring, and increase is modest and within the range fund the cost of this regulation of the policy, rulemaking, interpretive, and of ORFs assessed by other options marketplace. enforcement activities. The Exchange exchanges. believes that revenue generated from the The Exchange believes that amending B. Self-Regulatory Organization’s ORF, when combined with all of the the ORF from $0.0019 to $0.0021 as of Statement on Burden on Competition Exchange’s other regulatory fees, will August 1, 2016 is equitable and not The Exchange does not believe that cover a material portion, but not all, of unfairly discriminatory because this the proposed rule change will impose the Exchange’s regulatory costs. The adjustment would be applicable to all any burden on competition not Exchange will continue to monitor the members on all of their transactions that amount of revenue collected from the clear as Customer at OCC. In addition, necessary or appropriate in furtherance ORF to ensure that it, in combination the ORF seeks to recover the costs of of the purposes of the Act. The with its other regulatory fees and fines, supervising and regulating members, Exchange does not believe that the does not exceed regulatory costs. If the including performing routine proposed rule change will impose any Exchange determines regulatory surveillances, investigations, burden on competition not necessary or revenues exceed regulatory costs, the examinations, financial monitoring, and appropriate in furtherance of the Exchange will adjust the ORF by policy, rulemaking, interpretive, and purposes of the Act. [sic] In terms of submitting a fee change filing to the enforcement activities. inter-market competition, the Exchange Commission. The ORF is not charged for member notes that it operates in a highly proprietary options transactions because competitive market in which market ORF Adjustments members incur the costs of owning participants can readily favor competing The Exchange is proposing to increase memberships and through their venues if they deem fee levels at a the ORF from $0.0019 to $0.0021 as of memberships are charged transaction particular venue to be excessive, or August 1, 2016. In light of recent market fees, dues and other fees that are not rebate opportunities available at other volumes, the Exchange is proposing to applicable to non-members. Moreover, venues to be more favorable. In such an change the amount of ORF that will be the Exchange believes the ORF ensures environment, the Exchange must fairness by assessing higher fees to those collected by the Exchange. The continually adjust its fees to remain Exchange regularly reviews its ORF to members that require more Exchange competitive with other exchanges and ensure that the ORF, in combination regulatory services based on the amount with alternative trading systems that with its other regulatory fees and fines, of Customer options business they have been exempted from compliance does not exceed regulatory costs. The conduct. Exchange believes this adjustment will Regulating Customer trading activity with the statutory standards applicable permit the Exchange to cover a material is more labor intensive and requires to exchanges. Because competitors are portion of its regulatory costs, while not greater expenditure of human and free to modify their own fees in exceeding regulatory costs. technical resources than regulating non- response, and because market The Exchange notified members of Customer trading activity. Surveillance, participants may readily adjust their this ORF adjustment thirty (30) calendar regulation and examination of non- order routing practices, the Exchange days prior to the proposed operative Customer trading activity generally believes that the degree to which fee date.5 tends to be more automated and less changes in this market may impose any labor intensive. As a result, the costs burden on competition is extremely 2. Statutory Basis associated with administering the limited. The Exchange believes that its Customer component of the Exchange’s The Exchange does not believe that proposal is consistent with Section 6(b) overall regulatory program are increasing its ORF creates an undue of the Act 6 in general, and furthers the anticipated to be higher than the costs burden on intra-market competition objectives of Sections 6(b)(4) and 6(b)(5) associated with administering the non- because the adjustment will apply to all of the Act 7 in particular, in that it Customer component of its regulatory provides for the equitable allocation of program. The Exchange proposes members on all of their transactions that reasonable dues, fees and other charges assessing higher fees to those members clear as Customer at OCC. The Exchange among members and issuers and other that will require more Exchange is obligated to ensure that the amount of persons using any facility or system regulatory services based on the amount regulatory revenue collected from the which the Exchange operates or of Customer options business they ORF, in combination with its other controls, and is not designed to permit conduct.8 Additionally, the dues and regulatory fees and fines, does not unfair discrimination between fees paid by members go into the exceed regulatory costs. Additionally, customers, issuers, brokers, or dealers. general funds of the Exchange, a portion the dues and fees paid by members go The Exchange believes that increasing of which is used to help pay the costs into the general funds of the Exchange, the ORF from $0.0019 to $0.0021 as of of regulation. The Exchange believes a portion of which is used to help pay August 1, 2016 is reasonable because that the proposed ORF is a small cost for the costs of regulation. The Exchange’s the Exchange’s collection of ORF needs Customer executions. The Exchange has members are subject to ORF on other to be balanced against the amount of in place a regulatory structure to surveil options markets.9 regulatory revenue collected by the for, examine and monitor the Exchange. The Exchange believes that 9 The following options exchanges assess an ORF, the proposed adjustments noted herein 8 The ORF is not charged for orders that clear in Chicago Board Options Exchange, Incorporated categories other than the Customer range at OCC will serve to balance the Exchange’s (‘‘CBOE’’), C2 Options Exchange, Inc. (‘‘C2’’), the regulatory revenue against the (e.g., NOM Market Maker orders) because members incur the costs of memberships and through their International Securities Exchange, LLC (‘‘ISE’’), memberships are charged transaction fees, dues and NYSE Arca, Inc. (‘‘NYSEArca’’) and NYSE AMEX 5 See Options Trader Alert #2016–16. other fees that go into the general funds of the LLC (‘‘NYSEAmex’’), BATS Exchange, Inc. 6 15 U.S.C. 78f(b). Exchange, a portion of which is used to help pay (‘‘BATS’’) and The NASDAQ Options Market LLC 7 15 U.S.C. 78f(b)(4) and (5). the costs of regulation. (‘‘NOM’’).
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C. Self-Regulatory Organization’s those that may be withheld from the I. Self-Regulatory Organization’s Statement on Comments on the public in accordance with the Statement of the Terms of the Substance Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be of the Proposed Rule Change Members, Participants, or Others available for Web site viewing and The Exchange proposes to amend No written comments were either printing in the Commission’s Public NYSE Arca Equities Rule 1.1(ggP) to solicited or received. Reference Room, 100 F Street NE., establish an Official Closing Price for Washington, DC 20549, on official III. Date of Effectiveness of the Exchange-listed securities if the business days between the hours of Proposed Rule Change and Timing for Exchange is unable to conduct a Closing 10:00 a.m. and 3:00 p.m. Copies of the Commission Action Auction. The proposed rule change is filing also will be available for The foregoing rule change has become available on the Exchange’s Web site at inspection and copying at the principal www.nyse.com, at the principal office of effective pursuant to Section office of the Exchange. All comments 10 the Exchange, and at the Commission’s 19(b)(3)(A)(ii) of the Act. received will be posted without change; At any time within 60 days of the Public Reference Room. filing of the proposed rule change, the the Commission does not edit personal II. Self-Regulatory Organization’s Commission summarily may identifying information from Statement of the Purpose of, and temporarily suspend such rule change if submissions. You should submit only Statutory Basis for, the Proposed Rule it appears to the Commission that such information that you wish to make Change action is: (i) Necessary or appropriate in available publicly. All submissions the public interest; (ii) for the protection should refer to File Number SR– In its filing with the Commission, the of investors; or (iii) otherwise in NASDAQ–2016–096, and should be self-regulatory organization included furtherance of the purposes of the Act. submitted on or before August 15, 2016. statements concerning the purpose of, If the Commission takes such action, the For the Commission, by the Division of and basis for, the proposed rule change Commission shall institute proceedings Trading and Markets, pursuant to delegated and discussed any comments it received to determine whether the proposed rule authority.11 on the proposed rule change. The text should be approved or disapproved. Robert W. Errett, of those statements may be examined at IV. Solicitation of Comments Deputy Secretary. the places specified in Item IV below. The Exchange has prepared summaries, Interested persons are invited to [FR Doc. 2016–17447 Filed 7–22–16; 8:45 am] set forth in sections A, B, and C below, submit written data, views, and BILLING CODE 8011–01–P arguments concerning the foregoing, of the most significant parts of such including whether the proposed rule statements. change is consistent with the Act. SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Comments may be submitted by any of COMMISSION Statement of the Purpose of, and the following methods: Statutory Basis for, the Proposed Rule Electronic Comments [Release No. 34–78357; File No. SR– Change NYSEArca–2016–94] • Use the Commission’s Internet 1. Purpose comment form (http://www.sec.gov/ Self-Regulatory Organizations; NYSE The Exchange is proposing to amend rules/sro.shtml); or Arca, Inc.; Notice of Filing and • Send an email to rule-comments@ its rules to specify back-up procedures Immediate Effectiveness of Proposed sec.gov. Please include File Number SR– for determining an Official Closing Price NASDAQ–2016–096 on the subject line. Rule Change Amending NYSE Arca for Exchange-listed securities if it is Equities Rule 1.1 To Establish an unable to conduct a Closing Auction in Paper Comments Official Closing Price for Exchange- one or more securities due to a systems • Send paper comments in triplicate Listed Securities if the Exchange Is or technical issue.4 Specifically, the to Secretary, Securities and Exchange Unable To Conduct a Closing Auction Exchange proposes to amend NYSE Commission, 100 F Street NE., Arca Equities Rule 1.1(ggP) (‘‘Rule Washington, DC 20549–1090. July 19, 2016. 1.1(ggP)’’) to establish an Official All submissions should refer to File Pursuant to Section 19(b)(1) 1 of the Closing Price for Exchange-listed Number SR–NASDAQ–2016–096. This Securities Exchange Act of 1934 (the securities if the Exchange is impaired. file number should be included on the ‘‘Act’’),2 and Rule 19b–4 thereunder,3 The proposed changes are based on subject line if email is used. To help the notice is hereby given that on July 6, approved rules of the New York Stock Commission process and review your 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ Exchange, LLC (‘‘NYSE’’) and NYSE comments more efficiently, please use or ‘‘NYSE Arca’’) filed with the MKT LLC (‘‘NYSE MKT’’).5 Those only one method. The Commission will Securities and Exchange Commission markets, together with the Exchange and post all comments on the Commission’s (the ‘‘Commission’’) the proposed rule the NASDAQ Stock Market LLC Internet Web site (http://www.sec.gov/ change as described in Items I and II (‘‘Nasdaq’’), developed the back-up rules/sro.shtml). Copies of the below, which Items have been prepared procedures after taking into submission, all subsequent by the self-regulatory organization. The consideration feedback from discussions amendments, all written statements Commission is publishing this notice to with industry participants, including with respect to the proposed rule solicit comments on the proposed rule change that are filed with the 4 change from interested persons. See New York Stock Exchange press release Commission, and all written dated July 22, 2015, available here: http:// communications relating to the ir.theice.com/press-and-publications/press- releases/all-categories/2015/07-22-2015.aspx. proposed rule change between the 11 17 CFR 200.30–3(a)(12). 5 See Securities Exchange Act Release No. 78015 1 15 U.S.C. 78s(b)(1). Commission and any person, other than (June 8, 2016), 81 FR 38747 (June 14, 2016) (SR– 2 15 U.S.C. 78a. NYSE–2016–18) and (SR–NYSEMKT–2016–31) 10 15 U.S.C. 78s(b)(3)(A)(ii). 3 17 CFR 240.19b–4. (‘‘OCP Approval Order’’).
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meeting the following key goals official closing price on a trading day, as under the NYSE and NYSE MKT important to market participants: the Official Closing Price is the most rules, the Exchange proposes that the • Providing a pre-determined, recent consolidated last sale eligible back-up procedures specified in consistent solution that would result in trade during Core Trading Hours on that proposed Rules 1.1(ggP)(2)–(4) would be a closing print to the applicable trading day. If there were no applicable to Exchange-listed securities securities information processor (‘‘SIP’’) consolidated last sale eligible trades only. within a reasonable time frame from the during Core Trading Hours on that As proposed, Rule 1.1(ggP)(2) would normal closing time; trading day, the Official Closing Price provide that if the Exchange determines • Minimizing the need for industry will be the prior trading day’s Official at or before 3:00 p.m. Eastern Time that participants to modify their processing Closing Price. it is unable to conduct a Closing of data from the SIPs; and The rule further provides that an Auction in one or more NYSE Arca- • Providing advance notification of Official Closing Price may be adjusted to listed securities due to a systems or the applicable closing contingency plan reflect corporate actions or a correction technical issue, the Exchange would to provide sufficient time for industry to a closing price, as disseminated by designate an alternate exchange for such participants to route any closing interest the primary listing market for the security or securities. The Exchange to an alternate venue to participate in security. would publicly announce the exchange that venue’s closing auction. In Rule 7, the Exchange uses the designated as the alternate exchange via The Exchange also proposes to amend Official Closing Price for three purposes: Trader Update. In such case, the Official Rule 1.1(ggP) to specify that, for a UTP (1) To determine the Auction Reference Closing Price of each security would be 6 Security, the Exchange would use the Price for a security, as provided for in determined on the following hierarchy: official closing price as disseminated by Rule 7.35P(a)(8)(A); (2) to determine the • Proposed Rule 1.1(ggP)(2)(A) would the primary listing exchange to Trading Collar for a security if there is provide that the Official Closing Price determine the Trading Collar 7 for such no consolidated last sale price on the would be the official closing price for security if there is no consolidated last same trading day, as provided for in such security under the rules of the sale price on the same trading day, or Rule 7.31P(a)(1)(B)(i); and (3) for designated alternate exchange. For the Auction Reference Price 8 for such securities listed on the Exchange only, example, if the Exchange designates security. for purposes of determining whether to Nasdaq as the alternate exchange, the Background trigger a Short Sale Price Test, as Official Closing Price would be based on defined under Rule 7.16P(f)(2).9 Nasdaq Rule 4754, which defines how Current Rule 1.1(ggP) describes how Nasdaq establishes an official closing Proposed Amendments the Exchange establishes the ‘‘Official price. Closing Price,’’ which is the reference The Exchange proposes to amend The proposed 3:00 p.m. cut off time price to determine the closing price in Rule 1.1(ggP) to establish how the was selected in part based on a security for purposes of Rule 7 Exchange would determine an Official discussions with market participants Equities Trading. Rule 1.1(ggP) provides Closing Price if the Exchange is unable regarding their capability to re-direct that the Official Closing Price is to conduct a Closing Auction in an closing-only interest in Exchange-listed determined as follows: NYSE Arca–listed security or securities securities in time to participate in the • As provided for in Rule 1.1(ggP)(1), due to a systems or technical issue. To closing auction of an alternate venue. By for securities listed on the Exchange, the reflect this change, the Exchange designating an alternate exchange before Official Closing Price is the price proposes to add new rule text as 3:00 p.m. Eastern Time, the Exchange established in a Closing Auction of one proposed Rules 1.1(ggP)(2)–(4) and re- believes that market participants would round lot or more on a trading day. If number current Rule 1.1(ggP)(2) as be more likely to have sufficient notice there is no Closing Auction or if a proposed Rule 1.1ggP(5), as described in to direct any closing-only interest in Closing Auction trade is less than a greater detail below. Exchange-listed securities to the round lot on a trading day, the Official Proposed Rules 1.1(ggP)(2)–(4) are designated alternate exchange. By Closing Price is the most recent based on NYSE Rules 123C(1)(e)(ii)–(iv) providing market participants sufficient consolidated last sale eligible trade and NYSE MKT Rules 123C(1)(e)(ii)– time, when possible, to route closing- during Core Trading Hours on that (iv)—Equities with non-substantive only interest to an alternate venue for trading day. If there were no differences to use NYSE Arca Equities participation in that exchange’s closing consolidated last sale eligible trades terminology instead of NYSE auction process, that alternate during Core Trading Hours on that terminology, as follows: ‘‘Corporation’’ exchange’s closing auction would be trading day, the Official Closing Price or ‘‘NYSE Arca Marketplace’’ instead of more likely to result in a closing price will be the prior trading day’s Official ‘‘Exchange,’’ ‘‘Closing Auction’’ instead that reflects market value for such Closing Price. of ‘‘closing transaction,’’ ‘‘Core Trading security. • As provided for in Rule 1.1(ggP)(2), Hours’’ instead of ‘‘regular trading If there were insufficient interest for for securities listed on an exchange hours,’’ and ‘‘ETP Holder’’ instead of a closing auction on the designated other than the Exchange, the Official ‘‘member organization.’’ 10 In addition, alternate exchange, the Exchange Closing Price is the official closing price believes that the rules of Nasdaq disseminated by the primary listing 9 The Exchange disseminates to the SIP the provide for an appropriate hierarchy of market for that security via a public data Official Closing Price as an ‘‘M’’ value. For a which price to use to determine the feed on a trading day. If the primary description of all sale conditions that are reportable Official Closing Price. listing market does not disseminate an to the SIP for Exchange-listed securities, including the ‘‘M’’ value, see the Consolidated Tape System • Proposed Rule 1.1(ggP)(2)(B) would Participant Communications Interface provide if the designated alternate 6 As defined in NYSE Arca Equities Rule 1.1(ii), Specification, dated November 16, 2015, at 86, exchange does not have an official the term ‘‘UTP Security’’ means a security that is available here: https://www.ctaplan.com/ listed on a national securities exchange other than publicdocs/ctaplan/notifications/trader-update/cts_ closing price in a security, the Official the Exchange and that trades on the NYSE Arca input_spec.pdf. Marketplace pursuant to unlisted trading privileges. 10 See NYSE Arca Equities Rules 1.1(k) (defining term ‘‘Closing Auction’’); 1.1(j) (defining the term 7 See NYSE Arca Equities Rule 7.31P(a)(1)(B)(i). the term ‘‘Corporation’’); 1.1(e) (defining the term ‘‘Core Trading Hours’’); and 1.1(n) (defining the 8 See NYSE Arca Equities Rule 7.35P(a)(8)(A). ‘‘NYSE Arca Marketplace’’); 7.35P(d) (defining the term ‘‘ETP Holder’’).
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Closing Price would be the volume- The Exchange believes not publishing VWAP would be calculated in the same weighted average price (‘‘VWAP’’) of the an Official Closing Price would be a rare manner as set forth in proposed in Rule consolidated last-sale eligible prices of occurrence, and is most likely to occur 1.1(ggP)(2)(B), described above. the last five minutes of trading during for a thinly-traded security, such as a However, if the Exchange’s Core Trading Hours up to the time that when issued security, right, or warrant, determination that it is unable to the VWAP is processed. The VWAP that has been listed for trading but does conduct a Closing Auction is after 3:00 would include any closing transactions not have any consolidated last-sale p.m. ET, the proposed VWAP on an exchange and would take into eligible trades. calculation would be the primary means account any trade breaks or corrections If the Corporation determines that it is for determining the Official Closing up to the time the VWAP is processed. impaired at or before 3:00 p.m. and the Price for a security. In such case, the Because the VWAP would include any Official Closing Price for an Exchange- Exchange believes that the VWAP last-sale eligible trades, busts, or listed security is determined pursuant to would appropriately reflect the pricing corrections that were reported up to the proposed Rule 1.1(ggP)(2), the SIP of a security because it would include, time that the SIP calculates the VWAP, would publish the Official Closing Price in a volume-weighted manner, the price the Exchange believes that the VWAP for such security no differently than and volume of closing transactions on price would reflect any pricing how the SIP publishes the Official other exchanges if market participants adjustments that may be reported after Closing Price for an Exchange-listed are able to route closing interest in 4:00 p.m. ET. security pursuant to Rule 1.1(ggP)(1).11 Exchange-listed securities to an As discussed above, the manner by Accordingly, if the Official Closing Price alternate venue for participation in a which exchanges calculate their is determined pursuant to proposed closing auction. respective official closing prices provide Rule 1.1(ggP)(2), recipients of SIP data • Proposed Rule 1.1(ggP)(3)(B) would for an official closing price in the would not have to make any changes to provide that if there were no absence of a closing transaction. their systems because the SIP would consolidated last-sale eligible trades in Accordingly, the Exchange believes that publish the ‘‘M’’ last sale condition as the last five minutes of trading during in circumstances when the Exchange an Exchange Official Closing Price for Core Trading Hours in such security, the designates an alternate exchange, the any impacted Exchange-listed Official Closing Price would be the last VWAP calculation would rarely be used securities. consolidated last-sale eligible trades As further proposed, Rule 1.1(ggP)(3) to determine the Official Closing Price [sic] during Core Trading Hours on that would describe how the Corporation for an Exchange-listed security. trading day. This proposed rule text is • Proposed Rule 1.1(ggP)(2)(C) would would determine the Official Closing the same as proposed Rule provide that if the designated alternate Price for a security if the Corporation 1.1(ggP)(2)(C). exchange does not have an official determines after 3:00 p.m. Eastern Time • closing price in a security and there that it is unable to conduct a Closing Proposed Rule 1.1(ggP)(3)(C) would were no consolidated last-sale eligible Auction in one or more NYSE Arca- provide that if there were no trades in the last five minutes of trading listed securities due to a systems or consolidated last-sale eligible trades in during Core Trading Hours in such technical issue. Based on input from such security on a trading day, the security, the Official Closing Price market participants, the Exchange Official Closing Price would be the prior would be the last consolidated last-sale believes that, if the Exchange were to day’s Official Closing Price. This eligible trade during Core Trading Hours announce after 3:00 p.m. Eastern Time proposed rule text is the same as proposed Rule 1.1(ggP)(2)(D). on that trading day. that it is impaired and unable to • • Proposed Rule 1.1(ggP)(2)(D) would conduct a Closing Auction, market Finally, proposed Rule provide that if the designated alternate participants would not have sufficient 1.1(ggP)(3)(D) would provide that if an exchange does not have an official time to re-direct closing-only orders to Official Closing Price for a security closing price in a security and there an alternate venue. Accordingly, in such cannot be determined under (A), (B), or were no consolidated last-sale eligible scenario, the Exchange proposes to use (C) of proposed Rule 1.1(ggP)(3) and trades in a security on a trading day in the following hierarchy for determining there is no prior day’s Official Closing such security, the Official Closing Price the Official Closing Price for a security: Price, the Exchange would not publish would be the prior day’s Official Closing • Proposed Rule 1.1(ggP)(3)(A) would an Official Closing Price for such Price. provide that the Official Closing Price security. This proposed rule text is • Finally, proposed [sic] would be the VWAP of the consolidated based on proposed Rule 1.1(ggP)(2)(E). 1.1(ggP)(2)(E) would provide that if an last-sale eligible prices of the last five Similar to how the Official Closing Official Closing Price for a security minutes of trading during Core Trading Price would be published under cannot be determined under (A), (B), or Hours up to the time that the VWAP is proposed Rule 1.1(ggP)(2), if the (C) of proposed Rule 1.1(ggP)(2) and processed, including any closing Exchange determines that it is impaired there is no prior day’s Official Closing transactions on an exchange. The VWAP after 3:00 p.m. and the Official Closing Price, the Exchange would not publish would take into account any trade Price is determined pursuant to an Official Closing Price for such breaks or corrections up to the time of proposed Rule 1.1(ggP)(3), the SIP security. [sic] the VWAP is processed. This would publish the Official Closing Price The Exchange would use the for such security no differently than hierarchy set forth in proposed Rule 11 The Operating Committees of the CTA Plan, CQ how the SIP publishes the Official 1.1(ggP)(2)(B)–(E) only if the designated Plan, and the Joint Self-Regulatory Organization Closing Price for an Exchange-listed alternate exchange did not disseminate Plan Governing the Collection, Consolidation, and security pursuant to Rule 1.1(ggP)(1). Dissemination of Quotation and Transaction an official closing price in a security. In Information for Nasdaq-Listed Securities Traded on Accordingly, if the Official Closing Price addition, the Exchange proposes to add Exchanges on an Unlisted Trading Privileges Basis is determined pursuant to proposed as paragraph (E) of Rule 1.1(ggP)(2) what approved the Impaired Market Contingency Plan Rule 1.1(ggP)(3), recipients of SIP data would happen if there were no Official under which the SIPs would print an impaired would not have to make any changes to primary listing exchange’s contingency Official Closing Price published on the prior Closing Price as the Official Closing Price of that their systems because the SIP would trading day (i.e., the Exchange would primary listing exchange as provided for in the publish the ‘‘M’’ last sale condition as not publish an Official Closing Price). rules of respective primary listing exchanges. an Exchange Official Closing Price for
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any impacted Exchange-listed consolidated last-sale eligible trades on 1.1(ggP)(5) would use that Official securities. its first day of trading on the Exchange. Closing Price as well. For purposes of Rule 7.16P(f)(2) and This proposed rule change is based on To effect this amendment, the determining whether to trigger a Short NYSE Rule 123C(1)(e)(i) and NYSE Exchange proposes to delete the phrase Sale Price Test under that rule, the MKT Rule 123C(1)(e)(i)—Equities. As ‘‘For securities listed on an exchange Official Closing Price for Exchange- proposed, for a security that has other than NYSE Arca,’’ and replace it listed securities would still be transferred its listing to the Exchange with ‘‘For purposes of Rules determined based on Rule 1.1(ggP)(1). If and does not have any consolidated last- 7.31P(a)(1)(B)(i) and 7.35P(a)(8)(A) for the Exchange is impaired and cannot sale eligible trades on its first trading UTP Securities only’’. The remaining conduct a Closing Auction, similar to day, the Official Closing Price would be text of the rule would be unchanged. NYSE and NYSE MKT, the Official the prior day’s closing price The Exchange believes that for UTP Closing Price as defined in proposed disseminated by the primary listing Securities, the official closing price as Rules 1.1(ggP)(2) and (3) would be used market that previously listed such disseminated by the primary listing for purposes of determining whether a security. In addition, for a security that market would be a better price to use to Short Sale Price Test is triggered under is a new listing and does not have any determine the next day’s Trading Rule 7.16P(f)(2) in an Exchange-listed consolidated last-sale eligible trades on Collars or Auction Reference Price security the next trading day. its first trading day, the Official Closing rather than using the Exchange- Proposed Rule 1.1(ggP)(4) would Price would be based on a derived last determined Official Closing Price under provide that if the Exchange determines sale associated with the price of such Rule 1.1(ggP)(1). the Official Closing Price under security before it begins trading on the Because of the technology changes paragraphs (2) or (3) of proposed Rule Exchange. The Exchange believes the associated with this proposed rule 1.1(ggP), the Exchange would publicly proposed rule text would provide change, the Exchange will implement announce the manner by which it transparency in Exchange rules of how the proposed back-up procedures for would determine its Official Closing the Exchange would determine the determining an Official Closing Price no Price and the designated alternate Official Closing Price for a security that later than 120 days after the operative exchange, if applicable, and all open has transferred its listing to the date of this proposed rule change and interest designated for the Exchange Exchange, and thus did not have a prior close residing in the NYSE Arca will announce the implementation date day’s Official Closing Price on the via Trader Update. Marketplace would be deemed Exchange, or is a new listing that did cancelled to give ETP Holders the not have any trades on its first trading 2. Statutory Basis opportunity to route their closing day. interest to alternate execution venues. The Exchange believes that the Finally, the Exchange proposes to proposed rule change is consistent with This proposed rule would make clear 12 that any determination that the amend proposed Rule 1.1(ggP)(5) Section 6(b) of the Act, in general, and Exchange would make under proposed (which is current Rule 1.1(ggP)(2)) to furthers the objectives of Section 6(b)(5) 13 Rules 1.1(ggP)(2) or (3) would be clarify that this rule text would continue of the Act, in particular, in that it is publicly announced so that market to specify how the Exchange would designed to prevent fraudulent and participants would have an opportunity determine the Official Closing Price for manipulative acts and practices, to to route their closing interest UTP Securities for purposes of promote just and equitable principles of accordingly. In addition, the proposed establishing Trading Collars if there is trade, to foster cooperation and rule change would make clear that any no consolidated last sale price on the coordination with persons engaged in interest designated for the Exchange same trading day, or Auction Reference facilitating transactions in securities, close, i.e., MOC Orders and LOC Orders, Prices. For these purposes only, the and to remove impediments to and would be cancelled by the Exchange so Exchange would continue to use the perfect the mechanism of a free and ETP Holders may route such interest to official closing price as disseminated by open market and a national market alternate execution venues. the primary listing market for that system. To reflect that the Exchange could be security via a public data feed on a The Exchange believes that the designated as an alternate exchange by trading day for these purposes. The proposed rule change would remove another primary listing market, the proposed change to the rule text is impediments to and perfect the Exchange proposes to amend Rule designed to make clear that the mechanism of a free and open market 1.1(ggP)(1) to specify that the rule Exchange would continue to use the and a national market system because it would be applicable to Auction-Eligible official closing price of the primary would provide transparency in how the Securities, as defined in Rule listing market as the Official Closing Exchange would determine the Official 7.35P(a)(1), rather than only be Price for UTP Securities for these Closing Price in Exchange-listed applicable for securities listed on NYSE specific purposes, while at the same securities when the Exchange is unable Arca. With this proposed change, if time, providing for the Exchange to to conduct a Closing Auction due to a NYSE, NYSE MKT, or Nasdaq designate publish a ‘‘M’’ value for Auction- systems or technical issue. The the Exchange as its designated alternate Eligible Securities based on an Official Exchange believes that the proposed exchange under their respective back-up Closing Price determined pursuant to amendments would remove rules, Rule 1.1(ggP)(1) would govern 1.1(ggP)(1), as proposed. In addition, if impediments to and perfect the how the Exchange would determine the another primary listing market mechanism of a free and open market Official Closing Price for Auction- designates the Exchange as its and a national market system because Eligible Securities. designated alternate exchange under its the proposed determination of an The Exchange also proposes to amend official closing price rules, any Official Official Closing Price was crafted in Rule 1.1(ggP)(1) to specify how the Closing Price published by the response to input from industry Exchange would determine the Official Exchange in such securities would be participants and would: Closing Price for a security that has published by the SIP as the official transferred its listing to the Exchange or closing price of the primary listing 12 15 U.S.C. 78f(b). is a new listing and does not have any exchange. Accordingly, proposed Rule 13 15 U.S.C. 78f(b)(5).
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• Provide a pre-determined, an anomalous trade that may not reflect public interest by using the official consistent solution that would result in the true price of a security from being closing price as determined by the a closing print to the SIP within a set as the Official Closing Price for a primary listing market for UTP reasonable time frame from the normal security. Securities for purposes of determining closing time; The Exchange further believes that the the next day’s first Trading Collar (in • minimize the need for industry proposed rule change would remove the absence of a consolidated last sale participants to modify their processing impediments to and perfect the price) or Auction Reference Price. of data from the SIP; and mechanism of a free and open market • provide advance notification of the and a national market system because B. Self-Regulatory Organization’s applicable closing contingency plan to the proposal would have minimal Statement on Burden on Competition provide sufficient time for industry impact on market participants. As The Exchange does not believe that participants to route any closing interest proposed, from the perspective of the proposed rule change will impose to an alternate venue to participate in market participants, even if the any burden on competition that is not that venue’s closing auction Exchange were impaired, the SIP would necessary or appropriate in furtherance More specifically, the Exchange publish an Official Closing Price for of the purposes of the Act. The believes the proposed hierarchy for Exchange-listed securities on behalf of proposed rule change is not designed to determining the Official Closing Price if the Exchange in a manner that would be address any competitive issues, but the Exchange determines that it is no different than if the Exchange were rather to provide for how the Exchange impaired at or before 3:00 p.m. Eastern not impaired. If the Exchange would determine an Official Closing Time would remove impediments to determines that it is impaired after 3:00 Price for Exchange-listed securities if it and perfect the mechanism of a free and p.m., market participants would not is impaired and cannot conduct a open market and a national market have to make any system changes. If the closing transaction due to a systems or system because the proposal, which is Exchange determines that it is impaired technical issue. The proposal has been based on input from market participants before 3:00 p.m. Eastern Time and crafted with input from market and the approved rules of NYSE and designates an alternate exchange, participants, Nasdaq, and the SIPs, and NYSE MKT, would provide sufficient market participants may have to do is designed to reduce the burden on time for market participants to direct systems work to re-direct closing-only competition by having similar back-up closing-only interest to a designated orders to the alternate exchange. procedures across all primary listing alternate exchange in time for such However, the Exchange understands, exchanges if such exchange is impaired interest to participate in a closing based on input from market and cannot conduct a closing auction. auction on such alternate venue in a participants, that such changes would meaningful manner. The Exchange be feasible based on the amount of C. Self-Regulatory Organization’s further believes that relying on the advance notice. In addition, the Statement on Comments on the official closing price of a designated Exchange believes that designating an Proposed Rule Change Received From alternate exchange would provide for an alternate exchange when there is Members, Participants, or Others established hierarchy for determining an sufficient time to do so would remove No written comments were solicited Official Closing Price for an Exchange- impediments to and perfect the or received with respect to the proposed listed security if there is insufficient mechanism of a free and open market rule change. interest to conduct a closing auction on and a national market system because it the alternate exchange. In such case, the would allow for the price-discovery III. Date of Effectiveness of the rules of Nasdaq already provide a mechanism of a closing auction to be Proposed Rule Change and Timing for mechanism for determining an official available for impacted Exchange-listed Commission Action closing price for securities that trade on securities. Because the foregoing proposed rule that market. In addition, the Exchange believes change does not: (i) Significantly affect The Exchange further believes that if that the proposed amendments to Rule the protection of investors or the public the Exchange determines after 3:00 p.m. 1.1(ggP)(1) would remove impediments interest; (ii) impose any significant that it is impaired and unable the to and perfect the mechanism of a free burden on competition; and (iii) become conduct a Closing Auction, the and open market and a national market operative for 30 days from the date on proposed VWAP calculation would system because the proposed rule which it was filed, or such shorter time remove impediments to and perfect the change would enable the Exchange to as the Commission may designate, it has mechanism of a free and open market serve as a designated alternate exchange become effective pursuant to Section and a national market system because it under the respective rules of NYSE, 19(b)(3)(A) of the Act and Rule 19b– would provide for a mechanism to NYSE MKT, or Nasdaq. Specifically, by 4(f)(6) thereunder.14 determine the value of an affected expanding the reach of Rule 1.1(ggP)(1) At any time within 60 days of the security for purposes of determining an to all Auction-Eligible Securities on the filing of the proposed rule change, the Official Closing Price. By using a Exchange, and not just Exchange-listed Commission summarily may volume-weighted calculation that would securities, the hierarchy for determining temporarily suspend such rule change if include the closing transactions on an an Official Closing Price specified in it appears to the Commission that such affected security on alternate exchanges Rule 1.1(ggP) would be available to all action is necessary or appropriate in the as well as any busts or corrections that securities that trade on the Exchange. public interest, for the protection of were reported up to the time that the Because the Exchange would be investors, or otherwise in furtherance of SIP calculates the value, the Exchange determining an Official Closing Price for believes that the proposed calculation UTP Securities under the proposed 14 17 CFR 240.19b–4(f)(6). As required under Rule would reflect the correct price of a amendments to Rule 1.1(ggP)(1) for 19b–4(f)(6)(iii), the Exchange provided the security. In addition, by using a VWAP purposes of disseminating an ‘‘M’’ value Commission with written notice of its intent to file calculation rather than the last to the SIPs, the Exchange further the proposed rule change, along with a brief description and the text of the proposed rule consolidated last-sale eligible price as of believes that the proposed amendments change, at least five business days prior to the date the end of Core Trading Hours, the to Rule 1.1(ggP)(5) would be consistent of filing of the proposed rule change, or such Exchange would reduce the potential for with the protection of investors and the shorter time as designated by the Commission.
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the purposes of the Act. If the For the Commission, by the Division of change will: (i) Allow CP Participants to Commission takes such action, the Trading and Markets, pursuant to delegated designate a sub-account for Collateral Commission shall institute proceedings authority.15 Positioning (a ‘‘CP Sub-Account’’) of to determine whether the proposed rule Robert W. Errett, Securities selected by the CP Participant should be approved or disapproved. Deputy Secretary. (the ‘‘CP Securities’’) to Deliver to EB; [FR Doc. 2016–17444 Filed 7–22–16; 8:45 am] and (ii) establish the Securities Account IV. Solicitation of Comments BILLING CODE 8011–01–P of EB (the ‘‘EB Account’’) on the books Interested persons are invited to of DTC to receive and hold such CP submit written data, views, and Securities. DTC understands that EB arguments concerning the foregoing, SECURITIES AND EXCHANGE will then credit such CP Securities to an including whether the proposed rule COMMISSION account it maintains on its books for such CP Participant for use in transfers change is consistent with the Act. [Release No. 34–78358; File No. SR–DTC– Comments may be submitted by any of 2016–004] on the books of EB (‘‘EB Collateral the following methods: Transactions’’) in connection with EB’s Self-Regulatory Organizations; The collateral management services (‘‘EB Electronic Comments Depository Trust Company; Order CMS’’), as described below.5 • Use the Commission’s Internet Approving Proposed Rule Change To (i) Background comment form (http://www.sec.gov/ Establish a Link With Euroclear rules/sro.shtml); or (a) New Regulations Require Better July 19, 2016. • Access to and Management of Securities Send an email to rule-comments@ On June 3, 2016, The Depository Trust Collateral sec.gov. Please include File Number SR– Company (‘‘DTC’’) filed with the NYSEArca–2016–94 on the subject line. New and enhanced regulatory Securities and Exchange Commission requirements are leading derivative and Paper Comments (‘‘Commission’’) proposed rule change financing counterparties to seek SR–DTC–2016–004 pursuant to Section increased efficiency in the availability • Send paper comments in triplicate 19(b)(1) of the Securities Exchange Act and deployment of collateral and to Brent J. Fields, Secretary, Securities 1 of 1934 (‘‘Act’’), and Rule 19b–4 streamlined margin processing. More and Exchange Commission, 100 F Street 2 thereunder, to establish a link (‘‘EB specifically, the phase-in period of the NE., Washington, DC 20549–1090. Link’’) between DTC and Euroclear Basel III liquidity rules,6 as well as All submissions should refer to File Bank SA/NV (‘‘EB’’). The proposed rule recent regulatory changes by the Number SR–NYSEArca–2016–94. This change was published for comment in Commodity Futures Trading file number should be included on the the Federal Register on June 16, 2016.3 Commission,7 the U.S. prudential subject line if email is used. To help the The Commission did not receive any regulators,8 European Market Commission process and review your comment letters on the proposed rule Infrastructure Regulation,9 and the Basel comments more efficiently, please use change. For the reasons discussed only one method. The Commission will below, the Commission is granting 5 On May 9, 2016, EB filed an application with post all comments on the Commission’s approval of the proposed rule change. the Commission on Form CA–1, seeking to amend its existing exemption from clearing agency Internet Web site (http://www.sec.gov/ I. Description of the Proposed Rule registration by expanding its existing exemption to rules/sro.shtml). Copies of the Change authorize EB to offer EB CMS to its U.S. submission, all subsequent participants for U.S. equities (the ‘‘EB CA–1 amendments, all written statements The following is a description of the Amendment’’). DTC understands that the EB CA– proposed rule change, as provided 1 Amendment is necessary for EB to offer EB CMS, with respect to the proposed rule and consequently, the DTCC Euroclear Global change that are filed with the primarily by DTC: Collateral Ltd. (‘‘DEGCL’’) Inventory Management Commission, and all written The proposed rule change consists of Service (‘‘DEGCL IMS’’), to U.S. participants for communications relating to the amendments to the Rules, By-Laws and U.S. equities. Commission approval of this Organization Certificate of The proposed rule change to add new Rule 34 (EB Link) proposed rule change between the will have no effect on the authority of EB pursuant Commission and any person, other than Depository Trust Company (the to the EB CA–1 Amendment. In addition, this 4 those that may be withheld from the ‘‘Rules’’) in order to add new Rule 34 proposed rule change provides that it will not be public in accordance with the (EB Link) to establish EB Link between implemented until the EB CA–1 Amendment is DTC and EB for DTC Participants that approved by the Commission. provisions of 5 U.S.C. 552, will be 6 are also EB participants (‘‘CP Basel Committee on Banking Supervision, Basel available for Web site viewing and III: A global framework for more resilient banks and printing in the Commission’s Public Participants’’) to use Securities held at the banking system, December 2010 and revised Reference Room, 100 F Street NE., DTC for EB Collateral Transactions (as June 2011; Basel Committee on Banking Supervision, Basel III: The Liquidity Coverage Ratio Washington, DC 20549 on official defined below). The proposed Rule 34 specifies the Accounts, Free Deliveries, and liquidity risk monitoring tools, January 2013; business days between the hours of Basel Committee on Banking Supervision, Basel III: 10:00 a.m. and 3:00 p.m. Copies of such and the terms and conditions that The net stable funding ratio, October 2014, filing also will be available for together comprise collateral positioning available at www.bis.org/bcbs/basel3.htm. 7 inspection and copying at the principal (‘‘Collateral Positioning’’ or ‘‘CP’’) for Margin Requirements for Uncleared Swaps for CP Participants. The proposed rule Swap Dealers and Major Swap Participants, 81 FR office of the Exchange. All comments 635 (January 6, 2016); 17 CFR parts 23 and 140. received will be posted without change; 8 Margin and Capital Requirements for Covered 15 the Commission does not edit personal 17 CFR 200.30–3(a)(12). Swap Entities, 80 FR 74840 (November 30, 2015); 1 15 U.S.C. 78s(b)(1). identifying information from 12 CFR parts 45, 237, 349, 624 and 1221. The U.S. 2 17 CFR 240.19b–4. prudential regulators include: Office of the submissions. You should submit only 3 See Securities Exchange Act Release No. 78031 Comptroller of the Currency—Treasury, Board of information that you wish to make (June 10, 2016), 81 FR 39303 (June 16, 2016) (SR– Governors of the Federal Reserve System, Federal available publicly. All submissions DTC–2016–004). Deposit Insurance Corporation, Farm Credit should refer to File Number SR– 4 Each capitalized term not otherwise defined Administration, and the Federal Housing Finance herein has its respective meaning as set forth in the Agency. NYSEArca–2016–94, and should be Rules, available at http://www.dtcc.com/legal/rules 9 European Supervisory Authorities’ (ESAs) Final submitted on or before August 15, 2016. -and-procedures.aspx. Draft Regulatory Technical Standards on risk-
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Committee on Banking Supervision applicable law of the UK. DEGCL was For purposes of the EB Link, EB has (‘‘BCBS’’) and the International formed for the purpose of offering global become a Participant of DTC,13 in order Organization of Securities Commissions information, record keeping, and to establish the EB Account to which CP (‘‘IOSCO’’),10 have resulted in increased processing services for derivatives Securities will be credited. Accordingly, capital requirements, mandatory central collateral transactions and other types of EB will act in two capacities: (i) On its clearing of more derivatives financing transactions. DEGCL seeks to own behalf as a Participant of DTC, to transactions, and new margining rules provide services to its users, including maintain the EB Account in which CP for bilateral trades, driving a significant buy-side and sell-side financial Securities may be held, so that EB may increased demand for high quality institutions, in meeting their risk effect book entry transfers of those collateral. management and regulatory Securities on its own books and records; These regulatory changes further requirements for the holding and and (ii) on behalf of each CP Participant include requirements for initial margin exchange of collateral, as required by as the representative (the ‘‘CP for counterparties as well as a reduction these new regulatory requirements. or removal of thresholds for variation Representative’’) of such CP Participant, In particular, DEGCL IMS will address to provide instructions to DTC on the margin.11 It is expected that the the increased demand for cross-border inclusion of initial margin will CP Participant’s behalf for the Delivery availability of securities collateral, some of CP Securities from the CP Sub- significantly increase the amount of of which may be held at DTC. The Account, and to receive certain collateral required and will create purpose of DEGCL IMS is to offer to its information (x) once each Business Day, additional margin calls by affected users a more global view of their identifying the CP Securities that are counterparties. In addition, it is collateral assets and support cross- credited to the CP Sub-Account at the expected that the removal or reduction border mobility and to integrate of thresholds for variation margin will information and record keeping for time of the report (the ‘‘CP Securities mean any changes in underlying collateral use of Securities held at DTC Report’’), and (y) that specified CP valuations may trigger increased margin and EB. Securities have been Delivered into or calls requiring market participants to DEGCL IMS will be operated by EB out of the CP Sub-Account, and/or that hold additional collateral available for and other entities in the Euroclear an instruction has been given to DTC to posting. Also, these regulatory changes group, as the service provider to DEGCL, Deliver specified CP Securities out of include new restrictions on eligible in accordance with appropriate the CP Sub-Account, as applicable (the collateral, requiring the use of highly agreements among these parties and in ‘‘Delivery Information’’). liquid assets, prescribed haircuts, compliance with applicable regulatory The CP Participant will authorize EB segregation requirements, as well as a requirements. There is no direct as its CP Representative, to provide prohibition on rehypothecation for relationship between DTC and DEGCL instructions on its behalf, and to receive initial margin. Given these forthcoming IMS. DEGCL IMS will be offered to any the CP Securities Report and Delivery requirements, counterparties will need financial institution that is both a DTC Information. Both the CP Securities to access and deploy collateral more Participant and a participant of EB that Report and Delivery Information will effectively. has elected to use EB CMS (‘‘EB include, with respect to the CP (b) Proposed Rule Change Will Support Collateral Participant’’). Securities specified therein, the DEGCL IMS (ii) EB Link and Collateral Positioning following information: (i) The CUSIP, DEGCL is a United Kingdom (‘‘UK’’) Will Offer Global Collateral Mobility for ISIN, or other identification number of joint venture of DTCC and Euroclear Securities Held at DTC by CP the CP Securities; and (ii) the number of S.A./N.V. (‘‘Euroclear’’), authorized by Participants shares or other units or principal the Financial Conduct Authority amount of the CP Securities. The proposed rule change will (‘‘FCA’’) in the UK as a ‘‘service establish the EB Link between DTC and The CP Participant will instruct DTC company’’ 12 in accordance with EB through which a CP Participant to Deliver the CP Securities from the CP could Deliver Securities from its Participant’s Account to its CP Sub- mitigation techniques for OTC-derivative contracts Account. After the CP Securities have not cleared by a CCP under Article 11(15) of Account to its CP Sub-Account and, Regulation (EU) No 648/2012 (EMIR), available at from there, to the EB Account at DTC. been credited to the CP Sub-Account, https://www.eba.europa.eu/documents/10180/ The object is for EB to then credit the EB, as CP Representative, may instruct 1398349/RTS+on+Risk+Mitigation+Techniques+for DTC to make a Free Delivery of the +OTC+contracts+%28JC-2016-+18%29.pdf/ Securities to an account of the CP fb0b3387-3366-4c56-9e25-74b2a4997e1d. Participant on the books of EB for use appropriate CP Securities from the CP 14 10 BCBS–IOSCO, Margin requirements for non- in EB CMS. Sub-Account to the EB Account. All centrally cleared derivatives (March 2015), Deliveries from the CP Participant’s available at http://www.bis.org/bcbs/publ/ permission: (a) Incorporates a limitation Account to its CP Sub-Account and d317.htm. substantially to the effect that the firm carry on from the CP Sub-Account to the EB 11 Initial margin means money, securities, or regulated activities only with market counterparties property posted by a party to a swap as performance or intermediate customers; and (b) includes bond to cover potential future exposures arising requirements substantially to the effect that the firm 13 EB was accepted as a Participant on February from changes in the market value of the position. must not: (i) Guarantee, or otherwise accept 18, 2016. Upon approval of EB as a Participant, EB, Variation margin means a payment made by or responsibility for, the performance, by a participant like any other Participant, signed a Participant’s collateral posted by a party to a swap to cover the in arrangements made by the firm in carrying on Agreement pursuant to which it agreed, inter alia, current exposure arising from changes in the market regulated activities, of obligations undertaken by that the DTC Rules shall be a part of the terms and value of the position since the trade was executed that participant in connection with those conditions of every contract or transaction that EB or the previous time the position was marked to arrangements; or (ii) approve any financial may make or have with DTC, including the market. See 17 CFR 23.700. promotion on behalf of any other person or any Regulation Systems Compliance and Integrity 12 DEGCL was authorized as a ‘‘service company’’ specified class of persons; or (iii) in carrying on its testing requirements set forth in DTC Rule 2 by the FCA on March 29, 2016. A ‘‘service regulated activities, provide services otherwise than (Participants and Pledgees). company,’’ as defined in the FCA Handbook, in accordance with documents (of a kind specified 14 EB will determine the eligibility of CP Glossary, is: ‘‘[A] firm whose only permitted in the requirement) provided by the firm to the Securities for DEGCL IMS on the basis of the activities are making arrangements with a view to FCA.’’ FCA Handbook, Glossary, available at eligibility profile provided to DEGCL by its user transactions in investments, and agreeing to carry https://www.handbook.fca.org.uk/handbook/ counterparties, and subject to EB’s securities on that regulated activity, and whose Part 4A glossary. eligibility rules.
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Account will be Free Deliveries, subject The CP Securities held in the EB is a private rights of action; and (D) to to DTC risk management controls.15 Account are held there exclusively for any third party for any reason, including After CP Securities have been credited EB Collateral Transactions, so this without limitation, DEGCL. to the EB Account, it will then be EB’s proposed rule change will require EB to (iv) Implementation Timeframe responsibility to credit them to an Deliver CP Securities from the EB account at EB maintained for the CP Account to the Securities Account of the This proposed rule change will be Participant, as an EB Collateral EB Global Custodian in connection with implemented on the later of: (i) The date Participant. The originating CP any liquidation of those CP Securities. of Commission approval of this filing; Participant, as an EB Collateral (iii) Proposed Rule Change and (ii) the date of a Commission order Participant, may then choose to hold the approving the EB CA–1 Amendment, CP Securities in an account at EB, The proposed rule change will add authorizing EB to offer EB CMS to U.S. pending use in any EB Collateral Rule 34 to the DTC Rules, to provide for: EB Collateral Participants for U.S. Transaction, or transfer the CP 1. The establishment and equities. Participants will be advised of Securities on the books of EB to one or maintenance of a CP Sub-Account for the implementation date through the more other EB Collateral Participants in each CP Participant; issuance of a DTC Important Notice. connection with EB Collateral 2. The establishment and Transactions. maintenance of the EB Account for the II. Discussion and Commission EB may instruct DTC to Deliver CP purpose of Collateral Positioning Findings Deliveries; Securities from the EB Account to the Section 19(b)(2)(C) of the Act 19 CP Sub-Account from which such CP 3. Free Deliveries of CP Securities by a CP Participant from an Account of the directs the Commission to approve a Securities originated. This may occur if: proposed rule change of a self- (i) The CP Participant as a DEGCL IMS CP Participant to its CP Sub-Account, and back to (A) the originating Account regulatory organization if it finds that user changes its DEGCL IMS inventory such proposed rule change is consistent profile in a way that renders the CP of the CP Participant; (B) another Non- CP Account of the CP Participant; or (C) with the requirements of the Act and Securities credited to the EB Account no rules and regulations thereunder longer eligible for DEGCL IMS; (ii) the the Account of another Participant; 4. Free Deliveries of CP Securities as applicable to such organization. The CP Participant submits a Delivery Commission believes that the proposal instruction for such CP Securities; 16 or instructed by EB, as CP Representative of the CP Participant, from the CP Sub- is consistent with Section 17A(b)(3)(F) (iii) the CP Securities are subject to a of the Act 20 and Rule 17Ad–22(d)(7) 17 Account of the CP Participant to the EB corporate action or tax event. thereunder,21 as described in detail EB may also instruct DTC to Deliver Account; below. CP Securities from the EB Account to 5. Free Deliveries of CP Securities as the Securities Account of a Participant instructed by EB from the EB Account (i) Consistency With Section that EB has designated as its global to (A) the CP Sub-Account from which 17A(b)(3)(F) custodian (‘‘EB Global Custodian’’).18 such CP Securities originated, or (B) the Account of the EB Global Custodian; Section 17A(b)(3)(F) of the Act 22 15 DTC risk management controls, including 6. Information to be provided by DTC requires, among other things, that the Collateral Monitor and Net Debit Cap (as defined in to EB, as CP Representative of the CP rules of the clearing agency be designed Rule 1, Section 1 of the DTC Rules, supra note 4), Participant, specifically, the CP to promote the prompt and accurate are designed so that DTC may complete system- clearance and settlement of securities wide settlement notwithstanding the failure to Securities Report and the Delivery settle of its largest Participant or affiliated family of Information; transactions, and to assure the Participants. The Collateral Monitor tests whether 7. The requirement that Deliveries safeguarding of securities and funds a Receiver has adequate collateral to secure the provided in the proposed rule change which are in the custody or control of amount of its net debit balance. The Net Debit Cap the clearing agency or for which it is limits the Net Debit Balance of a Participant so that must be Free Deliveries, and shall be it cannot exceed DTC liquidity resources for subject to the terms and provisions of responsible. The Commission settlement. Pursuant to these controls under the DTC Rules and the Procedures understands that EB is currently an applicable DTC Rules and Procedures, any Delivery applicable to the Deliveries of indirect Participant holding DTC instruction order to a CP Sub-Account that will Eligible Securities through one or more cause the CP Participant to exceed its Net Debit Cap Securities, including DTC risk (which a Free Delivery should not) or to have management controls; and other financial institutions that are insufficient DTC collateral to secure its obligations 8. DTC’s disclaimer of liability to: (A) direct Participants. With this proposal, to DTC (which is possible), will not be processed Any CP Participant as a result of acting a direct link will be established between by DTC. CP Deliveries will be processed in the same on instructions from EB or providing EB DTC and EB (i.e., the EB Link), through order and with the same priority as otherwise provided in the DTC Rules and Procedures (i.e., the Delivery Information or the CP which Participants can more directly such Deliveries will not take precedence over any Securities Report pursuant to Rule 34; deploy their securities collateral for EB other type of Delivery in the DTC system). (B) EB as a result of acting on Collateral Transactions. As such, 16 If at any time a CP Participant has a pending instructions from a CP Participant transactions will be processed with EB instruction for Delivery of Securities that had been Delivered from its CP Sub-Account to the EB pursuant to Rule 34; (C) EB or any CP more efficiently by eliminating a step in Account, DTC understands that EB will instruct Participant as a result of any loss processing such transactions, thus DTC to Deliver those Securities from the EB relating to Rule 34, unless caused promoting prompt and accurate Account back to the CP Sub-Account from which directly by DTC’s gross negligence, transactions and the safeguarding of they originated. willful misconduct, or violation of securities and funds in the custody or 17 If EB does not Deliver the CP Securities back to the CP Sub-Account of the CP Participant prior Federal securities laws for which there control of DTC, consistent with the to the applicable record date for a corporate action, requirements of the Act, in particular the corporate action will be processed by DTC in characterizes as its ‘‘global custodian’’ and that is Section 17A(b)(3)(F), cited above. the ordinary course to EB as the Participant holding a DTC Participant. The EB Link is proposed to be the Securities on the Record Date. established for, and expressly limited to, Collateral 19 18 EB has not been a direct DTC Participant or had Positioning in connection with EB Collateral 15 U.S.C. 78s(b)(2)(C). a Securities Account at DTC prior to this proposed Transactions. EB may continue to use the EB Global 20 15 U.S.C. 78q–1(b)(3)(F). EB Link; EB has held Eligible Securities only as an Custodian for other EB transactions and to hold 21 17 CFR 240.17Ad–22(d)(7). indirect participant through a bank that it non-CP Securities indirectly at DTC. 22 15 U.S.C. 78q–1(b)(3)(F).
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(ii) Consistency With Rule 17Ad– SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s 22(d)(7) COMMISSION Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Rule 17Ad–22(d)(7) under the Act 23 Change requires a clearing agency, such as DTC, [Release No. 34–78361; File No. SR–BX– 2016–043] to establish, implement, maintain and 1. Purpose enforce written policies and procedures Self-Regulatory Organizations; The Exchange proposes to increase reasonably designed to evaluate the NASDAQ BX, Inc.; Notice of Filing and the ORF from $0.0003 to $0.0004 as of potential sources of risks that can arise Immediate Effectiveness of Proposed August 1, 2016 to account for a when the clearing agency establishes Rule Change To Make Adjustments to reduction in market volume the links either cross-border or domestically Its Options Regulatory Fee Exchange has experienced. The to clear or settle trades, and ensure that Exchange’s change to the ORF should the risks are managed prudently on an July 19, 2016. balance the Exchange’s regulatory 24 ongoing basis. In developing the Pursuant to Section 19(b)(1) of the revenue against the anticipated revenue proposed EB Link, DTC stated that it Securities Exchange Act of 1934 [sic]. evaluated the risks that could arise by (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Background establishing a link with EB, a foreign notice is hereby given that on July 6, The ORF is assessed to each member central securities depository. DTC stated 2016, NASDAQ BX, Inc. (‘‘BX’’ or for all options transactions executed or that it determined that all Deliveries ‘‘Exchange’’) filed with the Securities cleared by the member that are cleared between CP Sub-Accounts and the EB and Exchange Commission (‘‘SEC’’ or at The Options Clearing Corporation Account will be subject to DTC risk ‘‘Commission’’) the proposed rule management controls and will be (‘‘OCC’’) in the Customer range (i.e., that change as described in Items I, II, and clear in the Customer account of the limited to Free Deliveries. Therefore, III, below, which Items have been there should be minimum risk, in member’s clearing firm at OCC). The prepared by the Exchange. The Exchange monitors the amount of particular, no funds settlement risk, Commission is publishing this notice to associated with EB Link. revenue collected from the ORF to solicit comments on the proposed rule ensure that it, in combination with other III. Conclusion change from interested persons. regulatory fees and fines, does not exceed regulatory costs. The ORF is On the basis of the foregoing, the I. Self-Regulatory Organization’s Statement of the Terms of Substance of imposed upon all transactions executed Commission finds that the proposal is by a member, even if such transactions the Proposed Rule Change consistent with the requirements of the do not take place on the Exchange.3 The Act and in particular with the The Exchange proposes to make ORF also includes options transactions requirements of Section 17A of the adjustments to its Options Regulatory that are not executed by an Exchange 25 Act and the rules and regulations Fee (‘‘ORF’’) by amending BX Rules at member but are ultimately cleared by an 4 thereunder. Chapter XV, Section 5. Exchange member. The ORF is not charged for member proprietary options It is therefore ordered, pursuant to While the changes proposed herein Section 19(b)(2) of the Act, that transactions because members incur the are effective upon filing, the Exchange costs of owning memberships and proposed rule change SR–DTC–2016– has designated the amendments become 004 be, and hereby is, approved.26 through their memberships are charged operative on August 1, 2016. transaction fees, dues and other fees that For the Commission, by the Division of The text of the proposed rule change are not applicable to non-members. The Trading and Markets, pursuant to delegated is available on the Exchange’s Web site dues and fees paid by members go into 27 authority. at http://nasdaqbx.cchwallstreet.com/, the general funds of the Exchange, a Robert W. Errett, at the principal office of the Exchange, portion of which is used to help pay the Deputy Secretary. and at the Commission’s Public costs of regulation. The ORF is collected [FR Doc. 2016–17445 Filed 7–22–16; 8:45 am] Reference Room. indirectly from members through their BILLING CODE 8011–01–P clearing firms by OCC on behalf of the II. Self-Regulatory Organization’s Exchange. Statement of the Purpose of, and Statutory Basis for, the Proposed Rule 3 The ORF applies to all ‘‘C’’ account origin code Change orders executed by a members on the Exchange. Exchange Rules require each member to record the In its filing with the Commission, the appropriate account origin code on all orders at the time of entry in order to allow the Exchange to Exchange included statements properly prioritize and route orders and assess concerning the purpose of and basis for transaction fees pursuant to the Rules of the the proposed rule change and discussed Exchange and report resulting transactions to OCC. any comments it received on the The Exchange represents that it has surveillances in place to verify that members mark orders with the proposed rule change. The text of these correct account origin code. statements may be examined at the 4 In the case where one member both executes a places specified in Item IV below. The transaction and clears the transaction, the ORF is 23 17 CFR 240.17Ad–22(d)(7). Exchange has prepared summaries, set assessed to the member only once on the execution. 24 17 CFR 240.17Ad–22(d)(7). In the case where one member executes a forth in sections A, B, and C below, of 25 15 U.S.C. 78q–1. transaction and a different member clears the transaction, the ORF is assessed only to the member 26 In approving the proposed rule change, the the most significant aspects of such statements. who executes the transaction and is not assessed to Commission considered the proposal’s impact on the member who clears the transaction. In the case efficiency, competition, and capital formation. 15 where a non-member executes a transaction and a U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1). member clears the transaction, the ORF is assessed 27 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. to the member who clears the transaction.
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The ORF is designed to recover a the proposed adjustments noted herein of regulation. The Exchange believes portion of the costs to the Exchange of will serve to balance the Exchange’s that the proposed ORF is a small cost for the supervision and regulation of its regulatory revenue against the Customer executions. The Exchange has members, including performing routine anticipated regulatory costs. It is further in place a regulatory structure to surveil surveillances, investigations, reasonable because this adjustment for, examine and monitor the examinations, financial monitoring, and results in a price increase. While these marketplace for violations of Exchange policy, rulemaking, interpretive, and adjustments result in an increase, the Rules. The ORF assists the Exchange to enforcement activities. The Exchange increase is modest and within the range fund the cost of this regulation of the believes that revenue generated from the of ORFs assessed by other options marketplace. ORF, when combined with all of the exchanges. B. Self-Regulatory Organization’s Exchange’s other regulatory fees, will The Exchange proposes to amend the Statement on Burden on Competition cover a material portion, but not all, of ORF from $0.0003 to $0.0004 as of the Exchange’s regulatory costs. The August 1, 2016 is [sic] equitable and not The Exchange does not believe that Exchange will continue to monitor the unfairly discriminatory because this the proposed rule change will impose amount of revenue collected from the adjustment would be applicable to all any burden on competition not ORF to ensure that it, in combination members on all of their transactions that necessary or appropriate in furtherance with its other regulatory fees and fines, clear as Customer at OCC. In addition, of the purposes of the Act. The does not exceed regulatory costs. If the the ORF seeks to recover the costs of Exchange does not believe that the Exchange determines regulatory supervising and regulating members, proposed rule change will impose any revenues exceed regulatory costs, the including performing routine burden on competition not necessary or Exchange will adjust the ORF by surveillances, investigations, appropriate in furtherance of the submitting a fee change filing to the examinations, financial monitoring, and purposes of the Act. [sic] In terms of Commission. policy, rulemaking, interpretive, and inter-market competition, the Exchange enforcement activities. ORF Adjustments notes that it operates in a highly The ORF is not charged for member competitive market in which market The Exchange is proposing to increase proprietary options transactions because participants can readily favor competing the ORF from $0.0003 to $0.0004 as of members incur the costs of owning venues if they deem fee levels at a August 1, 2016. In light of recent market memberships and through their particular venue to be excessive, or volumes, the Exchange proposes to memberships are charged transaction rebate opportunities available at other change the amount of ORF that will be fees, dues and other fees that are not venues to be more favorable. In such an collected by the Exchange. The applicable to non-members. Moreover, environment, the Exchange must Exchange regularly reviews its ORF to the Exchange believes the ORF ensures continually adjust its fees to remain ensure that the ORF, in combination fairness by assessing higher fees to those competitive with other exchanges and with its other regulatory fees and fines, members that require more Exchange with alternative trading systems that does not exceed regulatory costs. The regulatory services based on the amount have been exempted from compliance Exchange believes this adjustment will of Customer options business they with the statutory standards applicable permit the Exchange to cover a material conduct. to exchanges. Because competitors are Regulating Customer trading activity portion of its regulatory costs, while not free to modify their own fees in is more labor intensive and requires exceeding regulatory costs. response, and because market greater expenditure of human and The Exchange notified members of participants may readily adjust their technical resources than regulating non- this ORF adjustment thirty (30) calendar order routing practices, the Exchange Customer trading activity. Surveillance, days prior to the proposed operative believes that the degree to which fee 5 regulation and examination of non- date. changes in this market may impose any Customer trading activity generally burden on competition is extremely 2. Statutory Basis tends to be more automated and less limited. The Exchange believes that its labor intensive. As a result, the costs proposal is consistent with Section 6(b) associated with administering the The Exchange does not believe that of the Act 6 in general, and furthers the Customer component of the Exchange’s increasing its ORF creates an undue objectives of Sections 6(b)(4) and 6(b)(5) overall regulatory program are burden on intra-market competition of the Act 7 in particular, in that it anticipated to be higher than the costs because the adjustment will apply to all provides for the equitable allocation of associated with administering the non- members on all of their transactions that reasonable dues, fees and other charges Customer component of its regulatory clear as Customer at OCC. The Exchange among members and issuers and other program. The Exchange proposes is obligated to ensure that the amount of persons using any facility or system assessing higher fees to those members regulatory revenue collected from the which the Exchange operates or that will require more Exchange ORF, in combination with its other controls, and is not designed to permit regulatory services based on the amount regulatory fees and fines, does not unfair discrimination between of Customer options business they exceed regulatory costs. Additionally, customers, issuers, brokers, or dealers. conduct.8 Additionally, the dues and the dues and fees paid by members go The Exchange believes that increasing fees paid by members go into the into the general funds of the Exchange, the ORF from $0.0003 to $0.0004 as of general funds of the Exchange, a portion a portion of which is used to help pay August 1, 2016 is reasonable because of which is used to help pay the costs the costs of regulation. The Exchange’s the Exchange’s collection of ORF needs members are subject to ORF on other 9 to be balanced against the amount of 8 The ORF is not charged for orders that clear in options markets. regulatory revenue collected by the categories other than the Customer range at OCC Exchange. The Exchange believes that (e.g., BX Options Market Maker orders) because 9 The following options exchanges assess an ORF: members incur the costs of memberships and Chicago Board Options Exchange, Incorporated through their memberships are charged transaction (‘‘CBOE’’), C2 Options Exchange, Inc. (‘‘C2’’), the 5 See Options Trader Alert #2016–16. fees, dues and other fees that go into the general International Securities Exchange, LLC (‘‘ISE’’), 6 15 U.S.C. 78f(b). funds of the Exchange, a portion of which is used NYSE Arca, Inc. (‘‘NYSEArca’’) and NYSE AMEX 7 15 U.S.C. 78f(b)(4) and (5). to help pay the costs of regulation. LLC (‘‘NYSEAmex’’), BATS Exchange, Inc.
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C. Self-Regulatory Organization’s proposed rule change between the (‘‘Consolidated Volume’’) requirement Statement on Comments on the Commission and any person, other than for a credit tier for providing liquidity Proposed Rule Change Received From those that may be withheld from the in securities of all three Tapes; (ii) Members, Participants, or Others public in accordance with the delete a credit tier for providing No written comments were either provisions of 5 U.S.C. 552, will be liquidity in securities of all three Tapes; solicited or received. available for Web site viewing and and (iii) provide a new credit for printing in the Commission’s Public providing liquidity in securities of all III. Date of Effectiveness of the Reference Room, 100 F Street NE., three Tapes. Proposed Rule Change and Timing for Washington, DC 20549, on official The text of the proposed rule change Commission Action business days between the hours of is available at The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the nasdaq.cchwallstreet.com, at Nasdaq’s effective pursuant to Section filing also will be available for principal office, and at the 19(b)(3)(A)(ii) of the Act.10 inspection and copying at the principal Commission’s Public Reference Room. At any time within 60 days of the office of the Exchange. All comments II. Self-Regulatory Organization’s filing of the proposed rule change, the received will be posted without change; Statement of the Purpose of, and Commission summarily may the Commission does not edit personal Statutory Basis for, the Proposed Rule temporarily suspend such rule change if identifying information from Change it appears to the Commission that such submissions. You should submit only In its filing with the Commission, action is: (i) Necessary or appropriate in information that you wish to make Nasdaq included statements concerning the public interest; (ii) for the protection available publicly. All submissions the purpose of, and basis for, the of investors; or (iii) otherwise in should refer to File Number SR–BX– proposed rule change and discussed any furtherance of the purposes of the Act. 2016–043, and should be submitted on comments it received on the proposed If the Commission takes such action, the or before August 15, 2016. rule change. The text of those Commission shall institute proceedings For the Commission, by the Division of statements may be examined at the to determine whether the proposed rule Trading and Markets, pursuant to delegated places specified in Item IV below. The should be approved or disapproved. authority.11 Robert W. Errett, Exchange has prepared summaries, set IV. Solicitation of Comments forth in sections A, B, and C below, of Deputy Secretary. Interested persons are invited to the most significant parts of such [FR Doc. 2016–17448 Filed 7–22–16; 8:45 am] statements. submit written data, views, and BILLING CODE 8011–01–P arguments concerning the foregoing, A. Self-Regulatory Organization’s including whether the proposed rule Statement of the Purpose of, and change is consistent with the Act. SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule Comments may be submitted by any of COMMISSION Change the following methods: [Release No. 34–78354; File No. SR– 1. Purpose Electronic Comments NASDAQ–2016–102] The purpose of the proposed rule • Use the Commission’s Internet Self-Regulatory Organizations; The change is to amend certain credits for comment form (http://www.sec.gov/ NASDAQ Stock Market LLC; Notice of the use of the order execution and rules/sro.shtml); or routing services of the Nasdaq Market • Filing and Immediate Effectiveness of Send an email to rule-comments@ Proposed Rule Change To Amend Center by members for all securities sec.gov. Please include File Number SR– Nasdaq Rule 7018 priced at $1 or more that it trades. BX–2016–043 on the subject line. Specifically, the Exchange proposes to July 19, 2016. amend Nasdaq Rule 7018(a)(1), (2), and Paper Comments Pursuant to Section 19(b)(1) of the (3) to: (i) Amend the Consolidated • Send paper comments in triplicate Securities Exchange Act of 1934 Volume requirement for a credit tier for to Secretary, Securities and Exchange (‘‘Act’’),1 and Rule 19b–4 thereunder,2 providing liquidity in securities of all Commission, 100 F Street NE., notice is hereby given that on July 13, three Tapes; 3 (ii) delete a credit tier for Washington, DC 20549–1090. 2016, The NASDAQ Stock Market LLC providing liquidity in securities of all All submissions should refer to File (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the three Tapes; and (iii) provide a new Number SR–BX–2016–043. This file Securities and Exchange Commission credit for providing liquidity in number should be included on the (‘‘SEC’’ or ‘‘Commission’’) a proposed securities of all three Tapes. subject line if email is used. To help the rule change as described in Items I, II First Change Commission process and review your and III below, which Items have been comments more efficiently, please use prepared by the Exchange. The The purpose of the first change is to only one method. The Commission will Commission is publishing this notice to increase the Consolidated Volume post all comments on the Commission’s solicit comments on the proposed rule requirement for accessing liquidity in an Internet Web site (http://www.sec.gov/ change from interested persons. existing credit tier. Currently, the credit rules/sro.shtml). Copies of the tier requires a member to access more submission, all subsequent I. Self-Regulatory Organization’s than 0.65% of Consolidated Volume amendments, all written statements Statement of the Terms of the Substance through one or more of its Nasdaq with respect to the proposed rule of the Proposed Rule Change Market Center MPIDs, provided that the change that are filed with the Nasdaq is proposing changes to member also provides a daily average of Commission, and all written amend Nasdaq Rule 7018(a) to: (i) communications relating to the Amend the consolidated volume 3 There are three Tapes, which are based on the listing venue of the security: Tape C securities are Nasdaq-listed; Tape A securities are New York (‘‘BATS’’) and The NASDAQ Options Market LLC 11 17 CFR 200.30–3(a)(12). Stock Exchange (‘‘NYSE’’)-listed; and Tape B (‘‘NOM’’). 1 15 U.S.C. 78s(b)(1). securities are listed on exchanges other than Nasdaq 10 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4. and NYSE.
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at least 2 million shares of liquidity in shares of liquidity provided in all controls, and is not designed to permit all securities during the month. The securities during the month unfair discrimination between Exchange is proposing to increase the representing more than 0.10% of customers, issuers, brokers, or dealers. required Consolidated Volume Consolidated Volume during the month, First Change requirement to more than 0.80%. The through one or more of its Nasdaq current credit will remain as $0.0029 Market Center MPIDs, and that adds The Exchange believes that this per share executed. The Consolidated Customer,4 Professional,5 Firm,6 Non- proposed amendment to the Volume requirement will be increased NOM Market Maker 7 and/or Broker- requirements of an existing credit tier as stated above for all three Tapes. Dealer 8 liquidity in Non-Penny Pilot provided in securities of all three Tapes Increasing the Consolidated Volume Options of 0.40% or more of total is reasonable because it amends a criteria will require members to access industry average daily volume (‘‘ADV’’) measure of activity with another, both of more liquidity to receive the $0.0029 in the customer clearing range for which represent a significant per share executed credit tier, but the Equity and exchange-traded fund contribution to that market. Specifically, Exchange believes that the members that (‘‘ETF’’) option contracts per day in a the Exchange is increasing the want to avail themselves of this credit month on the NOM. requirement that a member with shares tier will be able to meet the increased As a general principle, the Exchange of liquidity accessed in all securities Consolidated Volume requirement. chooses to offer credits to members in through one or more of its Nasdaq Increasing the amount of liquidity return for market improving behavior. Market Center MPIDs representing more accessed should be beneficial to other Under Rule 7018(a), the various credits than 0.65% of Consolidated Volume members as more of their resting limit the Exchange provides for members during the month. The Exchange is orders may be accessed by members require them to significantly contribute proposing to increase the monthly seeking to attain this credit tier. to market quality by providing certain Consolidated Volume requirement from more than 0.65% to more than 0.80%. Second Change levels of Consolidated Volume through one or more of its Nasdaq Market Center The member must also provide a daily The purpose of the second change is MPIDs, and volume on NOM. The average of at least 2 million shares of to delete the credit tier of $0.0030 per Exchange believes that by adding more liquidity in all securities through one or share executed for a member with in Non-Penny names on NOM that the more of its Nasdaq Market Center MPIDs shares of liquidity provided in all market for these options on NOM will during the month along with the securities during the month improve and the Exchange seeks to required shares of liquidity accessed. representing more than 0.20% of encourage such behavior. The Exchange believes that the Consolidated Volume during the month, proposed amendment to the through one or more of its Nasdaq 2. Statutory Basis requirements of an existing credit tier Market Center MPIDs and that qualifies The Exchange believes that its provided in securities of all three Tapes for the additional $0.05 per contract proposal is consistent with Section 6(b) is an equitable allocation and is not credit under Note c(3) of Nasdaq of the Act,9 in general, and furthers the unfairly discriminatory because the Options Market (‘‘NOM’’) Chapter XV objectives of Sections 6(b)(4) and 6(b)(5) Exchange will apply the same $0.0029 Section 2(1) in securities of all three of the Act,10 in particular, in that it per share executed credit to all similarly Tapes. provides for the equitable allocation of situated members. Thus, if a member No market participants qualified for reasonable dues, fees, and other charges meets the requirements, it will receive this credit tier recently, thus rendering among members and issuers and other the credit. Also, and as previously it ineffective as acting as an incentive. persons using any facility or system discussed, Nasdaq believes that However, since the Exchange is limited which the Exchange operates or although increasing the Consolidated in the amount of credits that it can Volume criteria will require members to provide to market participants and even 4 The term ‘‘Customer’’ or (‘‘C’’) applies to any access more liquidity to receive the though no market participants currently transaction that is identified by a Participant for $0.0029 per share executed credit tier, qualify for this credit tier, this can easily clearing in the Customer range at The Options members seeking to achieve this credit Clearing Corporation (‘‘OCC’’) which is not for the shift from month to month so Nasdaq is account of broker or dealer or for the account of a tier will be able to meet the increased proposing to delete it. Nasdaq must be ‘‘Professional’’ (as that term is defined in Chapter Consolidated Volume requirement. selective in providing credits to I, Section 1(a)(48)). Increasing the amount of liquidity members, and allocates credits to where 5 The term ‘‘Professional’’ or (‘‘P’’) means any accessed should be beneficial to other it believes it will receive the best result person or entity that (i) is not a broker or dealer in members as their resting limit orders securities, and (ii) places more than 390 orders in in terms of improvement to market listed options per day on average during a calendar may be accessed by members seeking to quality. The Exchange believes that month for its own beneficial account(s) pursuant to attain this credit tier. eliminating this credit tier for all three Chapter I, Section 1(a)(48). All Professional orders Second Change Tapes is the only way to ensure that it shall be appropriately marked by Participants. 6 The term ‘‘Firm’’ or (‘‘F’’) applies to any The Exchange believes that the will not going forward impact the transaction that is identified by a Participant for overall balance of credits and fees. clearing in the Firm range at OCC. proposed changes to delete a credit tier 7 for a member with shares of liquidity Third Change The term ‘‘NOM Market Maker’’ or (‘‘M’’) is a Participant that has registered as a Market Maker on provided in all securities during the The purpose of the third change is to NOM pursuant to Chapter VII, Section 2, and must month representing more than 0.20% of provide an additional credit to members also remain in good standing pursuant to Chapter Consolidated Volume during the month, VII, Section 4. In order to receive NOM Market that provide liquidity. Currently, the Maker pricing in all securities, the Participant must through one or more of its Nasdaq Exchange provides several credits under be registered as a NOM Market Maker in at least one Market Center MPIDs and that qualifies Rules 7018(a)(1), (2), and (3), each of security. for the additional $0.05 per contract which apply to securities of a different 8 The term ‘‘Broker-Dealer’’ or (‘‘B’’) applies to credit under Note c(3) of NOM Chapter any transaction which is not subject to any of the Tape, in return for market-improving other transaction fees applicable within a particular XV Section 2(1) in securities of all three behavior. The Exchange is proposing to category. Tapes is reasonable because the add a new credit tier of $0.0027 per 9 15 U.S.C. 78f(b). Exchange must, from time to time, share executed for a member that has 10 15 U.S.C. 78f(b)(4) and (5). adjust the level of credits provided, and
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the criteria required to receive them, to Customer, Professional, Firm, Non-NOM participants may readily adjust their provide the most efficient allocation of Market Maker and/or Broker-Dealer order routing practices, the Exchange credits in terms of market improving liquidity in Non-Penny Pilot Options of believes that the degree to which fee behavior. 0.40% or more of total industry ADV in changes in this market may impose any Specifically, with regard to the the customer clearing range for Equity burden on competition is extremely eliminated $0.0030 per share executed and ETF option contracts per day in a limited. credit tier, as discussed previously, month on the NOM. In this instance, the changes to the Nasdaq observed that no market The Exchange believes that the credits provided for the use of the order participants qualified for this credit tier proposed new credit tier is reasonable execution and routing services of the recently, thus rendering it ineffective as because although it provides for a lower Nasdaq Market Center by members for acting as an incentive. The Exchange is credit than some other NOM-linked all securities priced at $1 or more that limited in the amount of credits that it credit tiers, it also has a corresponding it trades are reflective of the intense can provide to market participants so lower Consolidated Volume threshold of competition among trading venues in even though no market participants 0.10%. Also, the proposed new credit capturing order flow. Moreover, the currently qualified for this credit tier, tier specifically requires adding proposed changes do not impose a this can easily shift from month to liquidity in Non-Penny Pilot Options.11 burden on competition because month. Nasdaq must be selective in Currently, the credit tier referencing the Exchange membership is optional and is providing credits to members, and NOM fee schedule that is being deleted also the subject of competition from allocates credits to where it believes it in the Second Change (described above) other trading venues. For these reasons, will receive the best result in terms of also has a Non-Penny liquidity the Exchange does not believe that any improvement to market quality. The component as part of the criteria, so of the proposed changes will impair the Exchange believes that it is reasonable using liquidity in Non-Penny Pilot ability of members or competing order to eliminate this credit tier as the only Options as a tiering criteria is not novel. execution venues to maintain their way to ensure that it will not going The Exchange believes that the competitive standing in the financial forward impact the overall balance of proposed $0.0027 per share executed markets. Moreover, because there are credits and fees. credit is an equitable allocation and is numerous competitive alternatives to The Exchange believes that the not unfairly discriminatory because the the use of the Exchange, it is likely that proposed change to delete the credit tier Exchange will apply the same credit to the Exchange will lose market share as described above in Rule 7018(a) is an all similarly situated members. Thus, if a result of the changes if they are equitable allocation and is not unfairly a member meets the requirements, it unattractive to market participants. discriminatory because the Exchange will receive the credit. A member will eliminate the same credit for all achieving this credit tier will be C. Self-Regulatory Organization’s similarly situated members. The credits providing liquidity in less liquid Statement on Comments on the Nasdaq provides are designed to options classes (i.e., Non-Penny names). Proposed Rule Change Received From improve market quality for all market The Exchange believes that by adding Members, Participants, or Others participants, and Nasdaq allocates its more in Non-Penny names on NOM that Written comments were neither credits in a manner that it believes are the market for these options on NOM solicited nor received. the most likely to achieve that result. will improve and the Exchange seeks to Elimination of the existing credit tier encourage such behavior. III. Date of Effectiveness of the under the rule is an equitable allocation Proposed Rule Change and Timing for B. Self-Regulatory Organization’s and is not unfairly discriminatory Commission Action Statement on Burden on Competition because no participants qualified under The foregoing change has become this credit tier, therefore, its elimination The Exchange does not believe that effective pursuant to Section will not impact any members. the proposed rule change will impose 19(b)(3)(A)(ii) of the Act.12 At any time any burden on competition not Third Change within 60 days of the filing of the necessary or appropriate in furtherance proposed rule change, the Commission The Exchange believes that the of the purposes of the Act. In terms of summarily may temporarily suspend proposed rule change to add a new inter-market competition, the Exchange such rule change if it appears to the credit tier of $0.0027 per share executed notes that it operates in a highly Commission that such action is is reasonable because it is consistent competitive market in which market necessary or appropriate in the public with other credits that the Exchange participants can readily favor competing interest, for the protection of investors, provides to members that provide venues if they deem fee levels at a or otherwise in furtherance of the liquidity. As discussed previously, as a particular venue to be excessive, or purposes of the Act. general principle the Exchange chooses rebate opportunities available at other to offer credits to members in return for venues to be more favorable. In such an IV. Solicitation of Comments market improving behavior. Under Rule environment, the Exchange must Interested persons are invited to 7018(a), the various credits the continually adjust its fees to remain submit written data, views, and Exchange provides for members require competitive with other exchanges and arguments concerning the foregoing, them to significantly contribute to with alternative trading systems that including whether the proposed rule market quality by providing certain have been exempted from compliance change is consistent with the Act. levels of Consolidated Volume through with the statutory standards applicable Comments may be submitted by any of one or more of its Nasdaq Market Center to exchanges. Because competitors are the following methods: MPIDs, and volume on NOM. The free to modify their own fees in proposed credit will be provided to response, and because market Electronic Comments members that not only contribute to the • Use the Commission’s Internet Exchange by providing more than 11 See NOM Chapter XV, Note c(3)(b) to Section comment form (http://www.sec.gov/ 2(1), which also supports members to add 0.10% of Consolidated Volume through Customer, Professional, Firm, Non-NOM Market rules/sro.shtml); or one or more of its Nasdaq Market Center Maker and/or Broker-Dealer liquidity in Non-Penny MPIDs during the month, but also adds Pilot Options. 12 15 U.S.C. 78s(b)(3)(A)(ii).
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• Send an email to rule-comments@ SUMMARY: This is a Notice of the SMALL BUSINESS ADMINISTRATION sec.gov. Please include File Number SR– Presidential declaration of a major NASDAQ–2016–102 on the subject line. disaster for Public Assistance Only for Military Reservist Economic Injury Disaster Loans Interest Rate for Fourth Paper Comments the State of Oklahoma (FEMA–4274– DR), dated 07/15/2016. Quarter FY 2016 • Send paper comments in triplicate to Secretary, Securities and Exchange Incident: Severe Storms and Flooding. In accordance with the Code of Commission, 100 F Street NE., Incident Period: 06/11/2016 through Federal Regulations 13—Business Credit Washington, DC 20549–1090. 06/13/2016. and Assistance § 123.512, the following interest rate is effective for Military All submissions should refer to File Effective Date: 07/15/2016. Reservist Economic Injury Disaster Number SR–NASDAQ–2016–102. This Physical Loan Application Deadline Loans approved on or after July 22, file number should be included on the Date: 09/13/2016. 2016. subject line if email is used. To help the Military Reservist Loan Program Commission process and review your Economic Injury (EIDL) Loan 4.000%. comments more efficiently, please use Application Deadline Date: 04/17/2017. Dated: July 15, 2016. only one method. The Commission will ADDRESSES: Submit completed loan post all comments on the Commission’s applications to: U.S. Small Business Lisa Lopez Suarez, Internet Web site (http://www.sec.gov/ Administration, Processing and Acting Associate Administrator for Disaster Assistance. rules/sro.shtml). Copies of the Disbursement Center, 14925 Kingsport submission, all subsequent [FR Doc. 2016–17467 Filed 7–22–16; 8:45 am] Road, Fort Worth, TX 76155. amendments, all written statements BILLING CODE P with respect to the proposed rule FOR FURTHER INFORMATION CONTACT: A. change that are filed with the Escobar, Office of Disaster Assistance, Commission, and all written U.S. Small Business Administration, DEPARTMENT OF TRANSPORTATION communications relating to the 409 3rd Street SW., Suite 6050, proposed rule change between the Washington, DC 20416. Federal Aviation Administration Commission and any person, other than [Summary Notice No. 2016–85] those that may be withheld from the SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the public in accordance with the Petition for Exemption; Summary of President’s major disaster declaration on provisions of 5 U.S.C. 552, will be Petition Received; Florida Air available for Web site viewing and 07/15/2016, Private Non-Profit Transport printing in the Commission’s Public organizations that provide essential Reference Room, 100 F Street NE., services of governmental nature may file AGENCY: Federal Aviation Washington, DC 20549 on official disaster loan applications at the address Administration (FAA), DOT. business days between the hours of listed above or other locally announced ACTION: Notice. 10:00 a.m. and 3:00 p.m. Copies of such locations. SUMMARY: This notice contains a filing also will be available for The following areas have been inspection and copying at the principal summary of a petition seeking relief determined to be adversely affected by from specified requirements of Title 14 office of the Exchange. All comments the disaster: received will be posted without change; of the Code of Federal Regulations. The the Commission does not edit personal Primary Counties: Caddo; Comanche; purpose of this notice is to improve the identifying information from Cotton; Garvin; Grady; Stephens. public’s awareness of, and participation in, the FAA’s exemption process. submissions. You should submit only The Interest Rates are: information that you wish to make Neither publication of this notice nor the inclusion or omission of information available publicly. All submissions Percent should refer to File Number SR– in the summary is intended to affect the NASDAQ–2016–102, and should be For Physical Damage: legal status of the petition or its final submitted on or before August 15, 2016. Non-Profit Organizations With disposition. Credit Available Elsewhere: 2.625 For the Commission, by the Division of DATES: Comments on this petition must Trading and Markets, pursuant to delegated Non-Profit Organizations With- identify the petition docket number and authority.13 out Credit Available Else- must be received on or before August where: 2.625 15, 2016. Robert W. Errett, For Economic Injury: Deputy Secretary. Non-Profit Organizations With- ADDRESSES: Send comments identified [FR Doc. 2016–17443 Filed 7–22–16; 8:45 am] out Credit Available Else- by docket number FAA–2016–7045 BILLING CODE 8011–01–P where: 2.625 using any of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov and follow The number assigned to this disaster the online instructions for sending your SMALL BUSINESS ADMINISTRATION for physical damage is 14775B and for comments electronically. [Disaster Declaration # 14775 and # 14776] economic injury is 14776B. • Mail: Send comments to Docket (Catalog of Federal Domestic Assistance Operations, M–30; U.S. Department of Oklahoma Disaster # OK–00105 Numbers 59002 and 59008) Transportation (DOT), 1200 New Jersey Avenue SE., Room W12–140, West AGENCY: U.S. Small Business Lisa Lopez-Suarez, Administration. Building Ground Floor, Washington, DC Acting Associate Administrator for Disaster 20590–0001. ACTION: Notice. Assistance. • Hand Delivery or Courier: Take [FR Doc. 2016–17454 Filed 7–22–16; 8:45 am] comments to Docket Operations in 13 17 CFR 200.30–3(a)(12). BILLING CODE 8025–01–P Room W12–140 of the West Building
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Ground Floor at 1200 New Jersey SUMMARY: This notice contains a Issued in Washington, DC, on July 14, Avenue SE., Washington, DC, between 9 summary of a petition seeking relief 2016. a.m. and 5 p.m., Monday through from specified requirements of Title 14 Dale Bouffiou, Friday, except Federal holidays. of the Code of Federal Regulations. The Deputy Director, Office of Rulemaking. • Fax: Fax comments to Docket purpose of this notice is to improve the Petition For Exemption Operations at 202–493–2251. public’s awareness of, and participation Privacy: In accordance with 5 U.S.C. in, the FAA’s exemption process. Docket No.: FAA–2016–3686. 553(c), DOT solicits comments from the Neither publication of this notice nor Petitioner: AirNet II, LLC. public to better inform its rulemaking the inclusion or omission of information Section(s) of 14 CFR Affected: process. DOT posts these comments, in the summary is intended to affect the 61.51(f)(2). without edit, including any personal legal status of the petition or its final Description of Relief Sought: AirNet information the commenter provides, to disposition. II, LLC seeks relief to allow AirNet II, http://www.regulations.gov, as LLC (AirNet) to assign a properly DATES: Comments on this petition must trained and qualified second in described in the system of records identify the petition docket number and notice (DOT/ALL–14 FDMS), which can command (SIC) during a flight that must be received on or before August otherwise does not require a SIC and to be reviewed at http://www.dot.gov/ 15, 2016. privacy. also allow the SIC to log that flight time. Docket: Background documents or ADDRESSES: Send comments identified AirNet II, LLC also request this relief be comments received may be read at by docket number FAA–2016–3686 extended to its operations outside of the http://www.regulations.gov at any time. using any of the following methods: United States. • Follow the online instructions for Federal eRulemaking Portal: Go to [FR Doc. 2016–17429 Filed 7–22–16; 8:45 am] accessing the docket or go to the Docket http://www.regulations.gov and follow BILLING CODE 4910–13–P Operations in Room W12–140 of the the online instructions for sending your West Building Ground Floor at 1200 comments electronically. • New Jersey Avenue SE., Washington, Mail: Send comments to Docket DEPARTMENT OF TRANSPORTATION DC, between 9 a.m. and 5 p.m., Monday Operations, M–30; U.S. Department of through Friday, except Federal holidays. Transportation (DOT), 1200 New Jersey Federal Highway Administration Avenue SE., Room W12–140, West FOR FURTHER INFORMATION CONTACT: Notice of Final Federal Agency Actions Brent Hart (202) 267–4034, Office of Building Ground Floor, Washington, DC 20590–0001. on Proposed Transportation Projects Rulemaking, Federal Aviation • in Florida Administration, 800 Independence Hand Delivery or Courier: Take Avenue SW., Washington, DC 20591. comments to Docket Operations in AGENCY: Federal Highway This notice is published pursuant to Room W12–140 of the West Building Administration (FHWA), DOT. Ground Floor at 1200 New Jersey 14 CFR 11.85. ACTION: Notice of Limitation of Claims Avenue SE., Washington, DC, between 9 for Judicial Review of Actions by Issued in Washington, DC, on July 14, a.m. and 5 p.m., Monday through FHWA, U.S. Army Corps of Engineers 2016. Friday, except Federal holidays. (USACE), and Other Federal Agencies. Dale Bouffiou, • Fax: Fax comments to Docket Acting Director, Office of Rulemaking. Operations at 202–493–2251. SUMMARY: This notice announces actions Petition for Exemption Privacy: In accordance with 5 U.S.C. taken by FHWA and other Federal 553(c), DOT solicits comments from the Agencies since September 17, 2014, that Docket No.: FAA–2016–7045. public to better inform its rulemaking are final within the meaning of 23 Petitioner: Florida Air Transport. process. DOT posts these comments, U.S.C. 139(l)(1). The actions relate to the Section(s) of 14 CFR Affected: without edit, including any personal proposed SR–20 (from US–301 to CR– 91.529(a) and (b); 125.265(a) and (b). information the commenter provides, to 315) in Alachua and Putnam Counties; Description of Relief Sought: Florida http://www.regulations.gov, as Pensacola Bay Bridge, SR–30 (US–98, Air Transport wants to allow company described in the system of records from 17th Avenue to Baybridge Drive) flight engineers (FEs) to maintain notice (DOT/ALL–14 FDMS), which can in Escambia and Santa Rosa Counties; currency in Douglas DC–6 airplanes, be reviewed at http://www.dot.gov/ Anna Maria Island Bridge, SR–64 using an Events Based Currency (EBC) privacy. (Manatee Avenue) (from west of SR–789 program rather than obtaining 50 hours Docket: Background documents or (East Bay Drive) to east of Perico Bay of operating experience or completing a comments received may be read at Blvd.) in Manatee County; Capital Circle competency check every 6 months. http://www.regulations.gov at any time. SW (SR–263), (from US–319 (SR–61) [FR Doc. 2016–17430 Filed 7–22–16; 8:45 am] Follow the online instructions for (Crawfordville Highway) to SR–20 BILLING CODE 4910–13–P accessing the docket or go to the Docket (Blountstown Highway) in Leon County, Operations in Room W12–140 of the SR 90/Tamiami Trail (US Highway 41) West Building Ground Floor at 1200 in Miami-Dade County, Palm Bay DEPARTMENT OF TRANSPORTATION New Jersey Avenue SE., Washington, Parkway Southern Interchange at I–95 DC, between 9 a.m. and 5 p.m., Monday Federal Aviation Administration in Brevard County, SR 710 (from SR 76 through Friday, except Federal holidays. to Blue Heron Blvd. at I–95) in Martin [Summary Notice No. 2016–66] FOR FURTHER INFORMATION CONTACT: and Palm Beach Counties, and US 301 Alphonso W. Pendergrass II, (202) 267– (from CR 227 to CR 233) in Starke, Petition for Exemption; Summary of 4713, Office of Rulemaking, Federal Bradford County in the State of Florida. Petition Received; AirNet II Aviation Administration, 800 These actions grant licenses, permits, and approvals for the projects. AGENCY: Federal Aviation Independence Avenue SW., Administration (FAA), DOT. Washington, DC 20591. DATES: By this notice, FHWA is advising This notice is published pursuant to the public of final agency actions ACTION: Notice. 14 CFR 11.85. subject to 23 U.S.C. 139(l)(1). A claim
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seeking judicial review of the Federal Migratory Bird Treaty Act (MBTA) [16 were taken are described in the agency actions on the listed highway U.S.C. 703–712]; Magnuson-Stevenson Environmental Assessment (EA) and in projects will be barred unless the claim Fishery Conservation and Management the Finding of No Significant Impact is filed on or before December 22, 2016. Act of 1976, as amended [16 U.S.C. 1801 (FONSI) issued on March 17, 2015, and If the Federal law that authorizes et seq.]. are available by contacting Mr. Stephen judicial review of a claim provides a 5. Historic and Cultural Resources: Browning, PE., Project Development time period of less than 150 days for Section 106 of the National Historic Engineer, Planning and Environmental filing such claim, then that shorter time Preservation Act of 1966, as amended Management Office, Mail Station 2007, period still applies. (106) [16 U.S.C. 470(f) et seq.]; 1109 South Marion Avenue, Lake City, FOR FURTHER INFORMATION CONTACT: For Archaeological Resources Protection Act Florida 32025, Phone Number: (386) FHWA: Ms. Cathy Kendall, AICP, of 1977 (ARPA) [16 U.S.C. 470(aa)– 961–7455, Email Address: Senior Environmental Specialist, FHWA 470(II)]; Archaeological and Historic [email protected]. Florida Division, 3500 Financial Plaza, Preservation Act (AHPA) [16 U.S.C. 2. Project Location: Escambia and Suite 400, Tallahassee, Florida 32312; 469–469(c)]; Native American Grave Santa Rosa Counties, Pensacola Bay telephone: (850) 553–2225; email: Protection and Repatriation Act Bridge, SR–30 (US–98) from 17th [email protected] . The FHWA (NAGPRA) [25 U.S.C. 3001–3013]. Avenue to Baybridge Drive), Federal Florida Division Office’s normal 6. Social and Economic: Civil Rights Project No: 4221–078–P. Project type: Act of 1964 (Civil Rights) [42 U.S.C. business hours are 7:30 a.m. to 4:00 p.m. The project involves the replacement of 20009(d)–2000(d)(1)]; American Indian (Eastern Standard Time), Monday the existing 4-lane Pensacola Bay Bridge Religious Freedom Act [42 U.S.C. 1996]; through Friday, except Federal holidays. with a 6-lane bridge. The actions by Farmland Protection Policy Act (FPPA) For USACE: Mr. Andrew A. Kizlauskas, FHWA and the laws under which such [7 U.S.C. 4201–4209]. Chief, Panama City Permitting Section, actions were taken are described in the 7. Wetlands and Water Resources: EA and in the Finding of No Significant U.S. Army Corps of Engineers, Panama Clean Water Act (Section 404, Section City Regulatory Office, 1002 West 23rd Impact (FONSI) issued on May 5, 2015, 401, Section 319) [33 U.S.C. 1251– and are available at http:// Street, Suite 350, Panama City, Florida 1377]; Coastal Barriers Resources Act www.pensacolabaybridge.com/. Corps 32405; telephone: (850) 763–0717, Ext. (CBRA) [16 U.S.C. 3501 et seq.]; Coastal Regional General Permit 92 verification 23; email: Andrew.A.Kizlauskas@ Zone Management Act (CZMA) [16 issued 30 March 2016 (DOT–3–FPN usace.army.mil. U.S.C. 1451–1465]; Land and Water 413062–3–32–01–Section 2, SR 8 (I–10) SUPPLEMENTARY INFORMATION: Notice is Conservation Fund (LWCF) [16 U.S.C. from Escambia Bay Bridge to east of SR hereby given that FHWA and other 4601–4604]; Safe Drinking Water Act 281). Federal Agencies have taken final (SDWA) [42 U.S.C. 300(f)–300(j)(6)]; 3. Project Location: Manatee County, agency action by issuing licenses, Rivers and Harbors Act of 1899 [33 Anna Maria Island Bridge, SR–64 permits, and approvals for the projects U.S.C. 401–406]; Wild and Scenic (Manatee Avenue) from west of SR–789 listed below. The actions by the Federal Rivers Act [16 U.S.C. 1271–1287]; (East Bay Drive) to east of Perico Bay agencies on a project, and the laws Emergency Wetlands Resources Act [16 Blvd., Federal Project No: 424436–1– under which such actions were taken, U.S.C. 3921, 3931]; Wetlands 21–01. Project type: The project are described in the documented Mitigation, [23 U.S.C. 103(b)(6)(M) and involves the replacement of the existing environmental assessment (EA) or 103(b)(11)]; Flood Disaster Protection two-lane double-leaf bascule Anna environmental impact statement (EIS) Act [42 U.S.C. 4001–4128]. Maria Island Bridge (Bridge Number issued in connection with the project, 8. Executive Orders: E.O. 11990 130054) with a two-lane high rise fixed- and in other project records for the Protection of Wetlands; E.O. 11988 span bridge on SR–64 (Manatee Avenue) listed projects. The EA or FEIS, Record Floodplain Management; E.O. 12898, crossing the Gulf Intracoastal Waterway. of Decision (ROD), and other documents Federal Actions to Address The actions by FHWA and the laws from FHWA and other Federal Agency Environmental Justice in Minority under which such actions were taken project records for the listed projects are Populations and Low Income are described in the EA and in the available by contacting the FHWA or by Populations; E.O. 11593 Protection and Finding of No Significant Impact using the links provided below. Enhancement of Cultural Resources; (FONSI) issued on January 15, 2016, and This notice applies to all Federal E.O. 13287 Preserve America; E.O. are available at http:// agency decisions by issuing licenses, 13175 Consultation and Coordination www.annamariaislandbridge.com/. permits, and approvals as of the with Indian Tribal Governments; E.O. 4. Project Location: Leon County, issuance date of this notice and all laws 11514 Protection and Enhancement of Capital Circle SW (SR–263), (from US– under which such actions were taken, Environmental Quality; E.O. 13112 319 (SR–61) (Crawfordville Highway) to including but not limited to: Invasive Species. SR–20 (Blountstown Highway), 1. General: National Environmental The projects subject to this notice are: Financial Project No: 415782–4. Project Policy Act (NEPA) [42 U.S.C. 4321– 1. Project Location: Alachua and type: This project involves widening the 4351; Federal-Aid Highway Act (FAHA) Putnam Counties, SR–20 (from US–301 existing roadway from 2-lanes to 6- [23 U.S.C. 109 and 23 U.S.C. 128]. to CR–315), Federal Project No: XA– lanes. The actions by FHWA and the 2. Air: Clean Air Act (CAA), 42 U.S.C. 400–1(43). Project type: The project will laws under which such actions were 7401–7671(q). widen SR–20 from a two-lane rural taken are described in the EA and in the 3. Land: Section 4(f) of the roadway to a four-lane urban divided Finding of No Significant Impact Department of Transportation Act of roadway from East of US–301 in the (FONSI) issued on January 14, 2016, and 1966 (4f) [49 U.S.C. 303 and 23 U.S.C. Town of Hawthorne to CR–315 in the are available at http:// 138]. Town of Interlachen. Corps Nationwide blueprint2000.org/projects/capital- 4. Wildlife: Endangered Species Act Permit verification 14 SAJ–2015–00890 circle/. (ESA) [16 U.S.C. 1531–1544 and 1536]; issued 6 May 2015 (DOT–2–FPN 5. Project Location: Miami-Dade Marine Mammal Protection Act [16 207818–2–52–01–SR20 Bridge/Culvert County, SR 90/Tamiami Trail (US U.S.C. 1361], Fish and Wildlife Replacement). The actions by FHWA Highway 41). Project Type: The project Coordination Act [16 U.S.C. 661–667(d); and the laws under which such actions will implement roadway modifications
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to restore more natural water flow to DEPARTMENT OF TRANSPORTATION provides, to www.regulations.gov, as Everglades National Park and Florida described in the system of records Bay for the purpose of restoring habitat Federal Motor Carrier Safety notice (DOT/ALL–14 FDMS), which can within the Park and ecological Administration be reviewed at www.dot.gov/privacy. connectivity between the Park and [Docket No. FMCSA–2015–0347] II. Background Water Conservation Areas. The project limits are between milepost 13.87 and Qualification of Drivers; Exemption On January 12, 2016, FMCSA 24.62 (west of Krome Avenue). This Applications; Vision published a notice of receipt of project will not add through lanes. The exemption applications from certain project will remove approximately 5.5 AGENCY: Federal Motor Carrier Safety individuals, and requested comments miles of existing 2-lane roadway fill Administration (FMCSA), DOT. from the public (81 FR 1474). That embankment and construct an equal ACTION: Notice of final disposition. notice listed 28 applicants’ case length of 2-lane bridging to replace the histories. The 28 individuals applied for removed embankment. Remaining SUMMARY: FMCSA announces its exemptions from the vision requirement roadway and fill embankment will be decision to exempt 28 individuals from in 49 CFR 391.41(b)(10), for drivers who slightly raised in elevation. Corps the vision requirement in the Federal operate CMVs in interstate commerce. Individual Permit SAJ–2014–01231 Motor Carrier Safety Regulations Under 49 U.S.C. 31136(e) and 31315, issued April 6, 2015, and is available at (FMCSRs). They are unable to meet the FMCSA may grant an exemption for a 2- http://geo.usace.army.mil/egis/ vision requirement in one eye for year period if it finds ‘‘such exemption f?p=340:9:0::NO. various reasons. The exemptions will would likely achieve a level of safety enable these individuals to operate that is equivalent to or greater than the 6. Project Location: Brevard County, commercial motor vehicles (CMVs) in Palm Bay Parkway Southern level that would be achieved absent interstate commerce without meeting such exemption.’’ The statute also Interchange at I–95. Financial Project the prescribed vision requirement in No: 426904–1–22–01 and 426904–1–22– allows the Agency to renew exemptions one eye. The Agency has concluded that at the end of the 2-year period. 02. Project Type: The project builds a granting these exemptions will provide new interchange that will directly Accordingly, FMCSA has evaluated the a level of safety that is equivalent to or 28 applications on their merits and connect the Palm Bay Parkway and greater than the level of safety Micco Road to I–95 just south of the made a determination to grant maintained without the exemptions for exemptions to each of them. City of Palm Bay in Brevard County. these CMV drivers. Corps Individual Permit SAJ–2009– DATES: The exemptions were granted III. Vision and Driving Experience of 01907 issued February 4, 2016, (DOT– the Applicants 5–FPN–426904–1–22–01), and is February 12, 2016. The exemptions available at http://geo.usace.army.mil/ expire on February 12, 2018. The vision requirement in the egis/f?p=340:9:0::NO. FOR FURTHER INFORMATION CONTACT: FMCSRs provides: Christine A. Hydock, Chief, Medical A person is physically qualified to 7. Project Location: Martin and Palm Programs Division, (202) 366–4001, drive a commercial motor vehicle if that Beach Counties, SR 710 (from SR 76 to [email protected], FMCSA, person has distant visual acuity of at Blue Heron Blvd. at I–95). Project type: Department of Transportation, 1200 least 20/40 (Snellen) in each eye Adds capacity to SR 710 and provides New Jersey Avenue SE., Room W64– without corrective lenses or visual a new urban interchange at Northlake 113, Washington, DC 20590–0001. acuity separately corrected to 20/40 Boulevard. Corps Individual Permit Office hours are 8:30 a.m. to 5 p.m., e.t., (Snellen) or better with corrective SAJ–2013–02593 issued September 17, Monday through Friday, except Federal lenses, distant binocular acuity of a least 2014, and is available at http:// holidays. If you have questions 20/40 (Snellen) in both eyes with or geo.usace.army.mil/egis/ regarding viewing or submitting without corrective lenses, field of vision f?p=340:9:0::NO. material to the docket, contact Docket of at least 70° in the horizontal meridian 8. Project Location: Starke, Bradford Services, telephone (202) 366–9826. in each eye, and the ability to recognize County, US 301 (from CR 227 to CR SUPPLEMENTARY INFORMATION: the colors of traffic signals and devices 233). Project type: Provides a 4 lane, showing red, green, and amber (49 CFR limited-access 7.3 mile bypass around I. Electronic Access 391.41(b)(10)). the City of Starke. Corps Individual You may see all the comments online FMCSA recognizes that some drivers Permit SAJ–2013–00113 issued March through the Federal Document do not meet the vision requirement but 4, 2016 (DOT–2–FPN 208001), and is Management System (FDMS) at http:// have adapted their driving to available at http://geo.usace.army.mil/ www.regulations.gov. accommodate their vision limitation egis/f?p=340:9:0::NO. Docket: For access to the docket to and demonstrated their ability to drive (Catalog of Federal Domestic Assistance read background documents or safely. The 28 exemption applicants Program Number 20.205, Highway Planning comments, go to http:// listed in this notice are in this category. and Construction. The regulations www.regulations.gov and/or Room They are unable to meet the vision implementing Executive Order 12372 W12–140 on the ground level of the requirement in one eye for various regarding intergovernmental consultation on West Building, 1200 New Jersey Avenue reasons, including age-related macular Federal programs and activities apply to this SE., Washington, DC, between 9 a.m. degeneration, amblyopia, complete loss program.) and 5 p.m., Monday through Friday, of vision, corneal scar, embryonic Authority: 23 U.S.C. 139(l)(1) except Federal holidays. cataract, macular scar, optic atrophy, Privacy Act: In accordance with 5 optic nerve damage, prosthetic eye, James C. Christian, U.S.C. 553(c), DOT solicits comments reduced vision, refractive amblyopia, Division Administrator, Federal Highway from the public to better inform its retinal detachment, and strabismic Administration, Tallahassee, Florida. rulemaking process. DOT posts these amblyopia. In most cases, their eye [FR Doc. 2016–17110 Filed 7–22–16; 8:45 am] comments, without edit, including any conditions were not recently developed. BILLING CODE 4910–RY–P personal information the commenter Nineteen of the applicants were either
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born with their vision impairments or To qualify for an exemption from the experiences of drivers in the first 2 years have had them since childhood. vision requirement, FMCSA requires a with their experiences in the final year. The 9 individuals that sustained their person to present verifiable evidence Applying principles from these vision conditions as adults have had it that he/she has driven a commercial studies to the past 3-year record of the for a range of 6 to 44 years. vehicle safely with the vision deficiency 28 applicants, no drivers were involved Although each applicant has one eye for the past 3 years. Recent driving in crashes, and 3 drivers were convicted which does not meet the vision performance is especially important in of moving violations in a CMV. All the requirement in 49 CFR 391.41(b)(10), evaluating future safety, according to applicants achieved a record of safety each has at least 20/40 corrected vision several research studies designed to while driving with their vision in the other eye, and in a doctor’s correlate past and future driving impairment, demonstrating the opinion, has sufficient vision to perform performance. Results of these studies likelihood that they have adapted their all the tasks necessary to operate a CMV. support the principle that the best driving skills to accommodate their Doctors’ opinions are supported by the predictor of future performance by a condition. As the applicants’ ample applicants’ possession of valid driver is his/her past record of crashes driving histories with their vision commercial driver’s licenses (CDLs) or and traffic violations. Copies of the deficiencies are good predictors of non-CDLs to operate CMVs. Before studies may be found at Docket Number future performance, FMCSA concludes issuing CDLs, States subject drivers to FMCSA–1998–3637. their ability to drive safely can be knowledge and skills tests designed to FMCSA believes it can properly apply projected into the future. evaluate their qualifications to operate a the principle to monocular drivers, We believe that the applicants’ CMV. because data from the Federal Highway intrastate driving experience and history All of these applicants satisfied the Administration’s (FHWA) former waiver provide an adequate basis for predicting testing requirements for their State of their ability to drive safely in interstate study program clearly demonstrate the residence. By meeting State licensing commerce. Intrastate driving, like driving performance of experienced requirements, the applicants interstate operations, involves monocular drivers in the program is demonstrated their ability to operate a substantial driving on highways on the better than that of all CMV drivers CMV, with their limited vision, to the interstate system and on other roads collectively (See 61 FR 13338, 13345, satisfaction of the State. built to interstate standards. Moreover, March 26, 1996). The fact that While possessing a valid CDL or non- driving in congested urban areas experienced monocular drivers CDL, these 28 drivers have been exposes the driver to more pedestrian demonstrated safe driving records in the authorized to drive a CMV in intrastate and vehicular traffic than exists on waiver program supports a conclusion commerce, even though their vision interstate highways. Faster reaction to that other monocular drivers, meeting disqualified them from driving in traffic and traffic signals is generally the same qualifying conditions as those interstate commerce. They have driven required because distances between required by the waiver program, are also CMVs with their limited vision in them are more compact. These likely to have adapted to their vision careers ranging for 3 to 59 years. In the conditions tax visual capacity and deficiency and will continue to operate past three years, no drivers were driver response just as intensely as safely. involved in crashes, and 3 drivers were interstate driving conditions. The convicted of moving violations in a The first major research correlating veteran drivers in this proceeding have CMV. past and future performance was done operated CMVs safely under those The qualifications, experience, and in England by Greenwood and Yule in conditions for at least 3 years, most for medical condition of each applicant 1920. Subsequent studies, building on much longer. Their experience and were stated and discussed in detail in that model, concluded that crash rates driving records lead us to believe that the January 12, 2016 notice (81 FR for the same individual exposed to each applicant is capable of operating in 1474). certain risks for two different time interstate commerce as safely as he/she periods vary only slightly (See Bates has been performing in intrastate IV. Basis for Exemption Determination and Neyman, University of California commerce. Consequently, FMCSA finds Under 49 U.S.C. 31136(e) and 31315, Publications in Statistics, April 1952). that exempting these applicants from FMCSA may grant an exemption from Other studies demonstrated theories of the vision requirement in 49 CFR the vision requirement in 49 CFR predicting crash proneness from crash 391.41(b)(10) is likely to achieve a level 391.41(b)(10) if the exemption is likely history coupled with other factors. of safety equal to that existing without to achieve an equivalent or greater level These factors—such as age, sex, the exemption. For this reason, the of safety than would be achieved geographic location, mileage driven and Agency is granting the exemptions for without the exemption. Without the conviction history—are used every day the 2-year period allowed by 49 U.S.C. exemption, applicants will continue to by insurance companies and motor 31136(e) and 31315 to the 28 applicants be restricted to intrastate driving. With vehicle bureaus to predict the listed in the notice of January 12, 2016 the exemption, applicants can drive in probability of an individual (81 FR 1474). interstate commerce. Thus, our analysis experiencing future crashes (See Weber, We recognize that the vision of an focuses on whether an equal or greater Donald C., ‘‘Accident Rate Potential: An applicant may change and affect his/her level of safety is likely to be achieved by Application of Multiple Regression ability to operate a CMV as safely as in permitting each of these drivers to drive Analysis of a Poisson Process,’’ Journal the past. As a condition of the in interstate commerce as opposed to of American Statistical Association, exemption, therefore, FMCSA will restricting him or her to driving in June 1971). A 1964 California Driver impose requirements on the 28 intrastate commerce. Record Study prepared by the California individuals consistent with the To evaluate the effect of these Department of Motor Vehicles grandfathering provisions applied to exemptions on safety, FMCSA concluded that the best overall crash drivers who participated in the considered the medical reports about predictor for both concurrent and Agency’s vision waiver program. the applicants’ vision as well as their nonconcurrent events is the number of Those requirements are found at 49 driving records and experience with the single convictions. This study used 3 CFR 391.64(b) and include the vision deficiency. consecutive years of data, comparing the following: (1) That each individual be
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physically examined every year (a) by the terms and conditions of the Legal Basis an ophthalmologist or optometrist who exemption; (2) the exemption has FMCSA has authority under 49 U.S.C. attests that the vision in the better eye resulted in a lower level of safety than 31136(e) and 31315 to grant exemptions continues to meet the requirement in 49 was maintained before it was granted; or from certain parts of the Federal Motor CFR 391.41(b)(10) and (b) by a medical (3) continuation of the exemption would Carrier Safety Regulations. FMCSA must examiner who attests that the individual not be consistent with the goals and publish a notice of each exemption is otherwise physically qualified under objectives of 49 U.S.C. 31136 and 31315. request in the Federal Register [49 CFR If the exemption is still effective at the 49 CFR 391.41; (2) that each individual 381.315(a)]. provide a copy of the ophthalmologist’s end of the 2-year period, the person may Section 5206(b)(2)(A) of the FAST Act or optometrist’s report to the medical apply to FMCSA for a renewal under requires FMCSA to extend all examiner at the time of the annual procedures in effect at that time. exemptions from the HOS regulations medical examination; and (3) that each Issued on: July 19, 2016. (49 CFR part 395) that were in effect on individual provide a copy of the annual Larry W. Minor, the date of enactment of the Act to a medical certification to the employer for Associate Administrator for Policy. period of 5 years from the date the retention in the driver’s qualification exemption was granted. The exemption file, or keep a copy in his/her driver’s [FR Doc. 2016–17458 Filed 7–22–16; 8:45 am] BILLING CODE 4910–EX–P may be renewed. Because this action qualification file if he/she is self- merely implements a statutory mandate employed. The driver must have a copy that took effect on the date of enactment of the certification when driving, for DEPARTMENT OF TRANSPORTATION of the FAST Act, notice and comment presentation to a duly authorized are not required. Federal, State, or local enforcement Federal Motor Carrier Safety official. Administration DOE Exemption V. Discussion of Comments [Docket No. FMCSA–2012–0370] From 2013 to 2015, DOE held a limited exemption from the mandatory FMCSA received no comments in this 30-minute rest break requirement of 49 proceeding. Hours of Service of Drivers: U.S. Department of Energy (DOE); FAST Act CFR 395.3(a)(3)(ii) that allowed DOE IV. Conclusion Extension of Expiration Date contract carriers and their drivers transporting security-sensitive Based upon its evaluation of the 28 AGENCY: Federal Motor Carrier Safety radioactive materials to be treated the exemption applications, FMCSA Administration (FMCSA), DOT. same as drivers transporting explosives exempts the following drivers from the ACTION: Notice; extension of exemption. pursuant to § 395.1(q). As that vision requirement in 49 CFR exemption neared expiration, DOE SUMMARY: 391.41(b)(10), subject to the FMCSA announces the applied for its renewal. requirements cited above (49 CFR extension of the hours-of-service (HOS) FMCSA reviewed DOE’s request and 391.64(b)): exemption granted to the U.S. the public comments and reaffirmed its David W. Anderson (OR) Department of Energy (DOE) on June 30, previous conclusion that allowing these Charles H. Baim (PA) 2015, for certain commercial motor drivers to count on-duty time Troy C. Blackburn (OH) vehicle (CMV) drivers. The Agency ‘‘attending’’ their CMVs toward the Johnnie E. Byler (PA) extends the expiration date of the required 30-minute break, would Raymond E. Catanio (NJ) exemption to June 29, 2020 in response promote safety at least as effectively as Dana L. Colberg (OR) to section 5206(b)(2)(A) of the ‘‘Fixing the break itself. The notice renewing the Peter D. Costas (NY) America’s Surface Transportation Act’’ DOE exemption was published on June Darrin G. Davis (WI) (FAST Act). That section extends the 22, 2015 [80 FR 35703]. Rene Hernandez Gonzalez (FL) expiration date of all HOS exemptions The substance of the 2015 exemption Johnnie W. Hines, Jr. (FL) in effect on the date of enactment to 5 is not affected by this extension. The Dean L. Knutson (SD) years from the date of issuance of the DOE exemption covers only the 30- Melvin L. Lester (MS) exemptions. The DOE exemption from minute break requirement [49 CFR Gerald R. Metzler (PA) the Agency’s 30-minute rest break 395.3(a)(3)(ii)] and is restricted to Kory M. Nelson (MD) requirement is limited to DOE’s contract contract motor carriers and their drivers Douglas L. Peterson (WI) motor carriers and their employee- employed by DOE transporting security- Ramon S. Puente (IA) drivers engaged in the transportation of sensitive radioactive materials. On each Dennis W. Rhoades (VT) security-sensitive radioactive materials. trip, the drivers are allowed to use 30 Jose H. Rivas (NM) The Agency previously determined that minutes or more of ‘‘attendance time’’ to Joseph T. Saba (MN) CMV operations under this exemption meet the requirements for a rest break in LeRoy W. Scharkey (MN) would likely achieve a level of safety the manner provided in 49 CFR Roger H. Schwisow (NE) equivalent to or greater than the level of 395.1(q), provided they perform no Walton W. Smith, Jr. (VA) safety that would be obtained in the other on-duty activities during the rest Dustin W. Tharp (IA) absence of the exemption. break. Aaron D. Tillman (DE) DATES: This limited exemption is The FMCSA does not believe the Larry J. Weber (WI) effective from June 30, 2015, through safety record of any driver operating Richard N. Wescott (ME) June 29, 2020. under this exemption will deteriorate. Oscar M. Wilkins (ME) FOR FURTHER INFORMATION CONTACT: Mr. However, should deterioration in safety Rodney W. Wright (PA) Thomas Yager, Chief, FMCSA Driver occur, FMCSA will take all steps In accordance with 49 U.S.C. 31136(e) and Carrier Operations Division; Office necessary to protect the public interest, and 31315, each exemption will be valid of Carrier, Driver and Vehicle Safety including revocation of the exemption. for 2 years unless revoked earlier by Standards; Telephone: 614–942–6477. The FMCSA has the authority to FMCSA. The exemption will be revoked Email: [email protected]. terminate the exemption at any time the if: (1) The person fails to comply with SUPPLEMENTARY INFORMATION: Agency has the data/information to
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conclude that safety is being that was in effect on the date of Agency has the data/information to compromised. enactment of the Act to a period of 5 conclude that safety is being Issued on: July 14, 2016. years from the date the exemption was compromised. granted. The exemption may be T.F. Scott Darling, III, Issued on: July 14, 2016. renewed. Because this action merely T.F. Scott Darling, III, Acting Administrator. implements a statutory mandate that [FR Doc. 2016–17459 Filed 7–22–16; 8:45 am] took effect on the date of enactment of Acting Administrator. BILLING CODE 4910–EX–P the FAST Act, notice and comment are [FR Doc. 2016–17462 Filed 7–22–16; 8:45 am] not required. BILLING CODE 4910–EX–P DEPARTMENT OF TRANSPORTATION WestRock Exemption WestRock, a motor carrier formerly DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety known as RockTenn, applied for a Administration limited exemption from the prohibition Federal Motor Carrier Safety Administration [Docket No. FMCSA–2010–0027] from operating a CMV on a public road after the end of the 14th hour after [Docket No. FMCSA–2012–0032] Hours of Service of Drivers: WestRock coming on duty following 10 or more Exemption; FAST Act Extension of consecutive hours off duty [49 CFR Commercial Driver’s License Compliance Date 395.3(a)(2)] on behalf of their shipping Standards: Application for Exemption; department employees operating CMVs. Daimler Trucks North America AGENCY: Federal Motor Carrier Safety FMCSA reviewed WestRock’s (Daimler) Administration (FMCSA), DOT. application and the public comments AGENCY: ACTION: Notice; extension of exemption. and concluded that limiting the Federal Motor Carrier Safety Administration (FMCSA), DOT. SUMMARY: FMCSA announces the exemption to CDL holders employed by WestRock who are exclusively assigned ACTION: Notice of final disposition; grant extension of the exemption granted to of application for exemption. WestRock, formerly known as to a specific route, and may operate a CMV on a public road past the 14-hour RockTenn, on April 17, 2014, for short SUMMARY: FMCSA announces its limit, will promote safety at least as trips to their loading docks. The Agency decision to grant an exemption to effectively as the ‘‘14-hour rule.’’ These extends the expiration date from April Daimler Trucks North America drivers operate like certain short-haul 17, 2014 to April 16, 2019, in response (Daimler) for one of its commercial drivers, who are already permitted a 16- to the ‘‘Fixing America’s Surface motor vehicle (CMV) drivers. Daimler hour driving ‘‘window’’ once a week Transportation Act’’ (FAST Act). That requested a 5-year exemption from the and other non-CDL short-haul drivers Act extends the expiration date of Federal requirement to hold a U.S. who are allowed two 16-hour duty hours-of-service (HOS) exemptions in commercial driver’s license (CDL) for periods per week. WestRock held a effect on the date of enactment of the similar 2-year exemption from 2012– Mr. Sebastian Boehm, a project engineer FAST Act to 5 years from the date of 2014. A Notice of Final Determination for the Daimler Trucks and Bus issuance of the exemptions. The granting the WestRock exemption was Division. Mr. Boehm holds a valid WestRock exemption from the Agency’s published on April 22, 2014 [79 FR German commercial license and wants 14 hour rule is limited to WestRock 22571]. to test drive Daimler vehicles on U.S. drivers operating commercial motor The substance of the exemption is not roads to better understand product vehicles (CMVs) between WestRock affected by this extension. The requirements in ‘‘real world’’ shipping and receiving departments exemption covers only the ‘‘14 hour environments, and verify results. only, on the public road (Compress rule’’ [49 CFR 395.3(a)(3)(ii)]. The Daimler believes the requirements for a Street). The Agency previously exemption is restricted to drivers German commercial license ensure that determined that the CMV operations of employed by WestRock operating CMVs operation under the exemption will WestRock’s drivers under this on a specified route. On each trip, the likely achieve a level of safety exemption would likely achieve a level CMV must only travel on the public equivalent to or greater than the level of safety equivalent to or greater than road (Compress Street)—approximately that would be obtained in the absence the level of safety that would be 275 feet in one direction—between of the exemption. obtained in the absence of the WestRock’s shipping and receiving DATES: This exemption is effective July exemption. departments. The exemption enables 25, 2016 and expires July 25, 2021. DATES: This limited exemption is WestRock’s shipping department drivers ADDRESSES: effective from April 17, 2014 through and occasional substitute CDL holders Docket: For access to the docket to April 16, 2019. who transport paper mill products read background documents or SUPPLEMENTARY INFORMATION: between WestRock’s shipping and comments, go to www.regulations.gov at receiving locations on Compress Street any time or visit Room W12–140 on the Legal Basis to work up to 16 hours in a day and ground level of the West Building, 1200 FMCSA has authority under 49 U.S.C. return to work with a minimum of at New Jersey Avenue SE., Washington, 31136(e) and 31315 to grant exemptions least 8 hours off duty. DC, between 9 a.m. and 5 p.m., ET, from certain parts of the Federal Motor The FMCSA does not believe the Monday through Friday, except Federal Carrier Safety Regulations. FMCSA must safety record of any driver operating holidays. The on-line FDMS is available publish a notice of each exemption under this exemption will deteriorate. 24 hours each day, 365 days each year. request in the Federal Register [49 CFR However, should deterioration in safety Privacy Act: In accordance with 5 381.315(a)]. occur, FMCSA will take all steps U.S.C. 553(c), DOT solicits comments Section 5206(b)(2)(A) of the FAST Act necessary to protect the public interest, from the public to better inform its requires FMCSA to extend any including revocation of the exemption. rulemaking process. DOT posts these exemption from any provision of the The FMCSA has the authority to comments, without edit, including any HOS regulations under 49 CFR part 395 terminate the exemption at any time the personal information the commenter
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provides, to www.regulations.gov, as and conditions. The exemption may be driver’s ability to operate CMVs in the described in the system of records renewed (49 CFR 381.300(b)). U.S. Since 2012, FMCSA has granted notice (DOT/ALL–14 FDMS), which can Section 5206(a)(3) of the ‘‘Fixing Daimler drivers similar exemptions be reviewed at www.dot.gov/privacy. America’s Surface Transportation Act,’’ [May 25, 2012 (77 FR 31422); July 22, (FAST Act) [Pub. L. 114–94, 129 Stat. FOR FURTHER INFORMATION CONTACT: For 2014 (79 FR 42626); March 27, 2015 (80 information concerning this notice, 1312, 1537, Dec. 4, 2015], amended 49 FR 16511); October 5, 2015 (80 FR contact Ms. Pearlie Robinson, FMCSA U.S.C. 31315(b) by adding a new 60220); December 7, 2015 (80 FR Driver and Carrier Operations Division; paragraph (2) which permits exemptions 76059); December 21, 2015 (80 FR for no longer than 5 years from their Office of Carrier, Driver and Vehicle 79410)]. dates of inception, instead of the Safety Standards; Telephone: 202–366– previous 2 years. This statutory Public Comments 4325. Email: [email protected]. If you provision will be codified in 49 CFR have questions on viewing or submitting On May 4, 2016, FMCSA published part 381 in a forthcoming rulemaking. material to the docket, contact Docket notice of this application and requested Services, telephone (202) 366–9826. III. Request for Exemption public comments (81 FR 26866). No comments were submitted. SUPPLEMENTARY INFORMATION: On behalf of Sebastian Boehm, Daimler has applied for a 5-year FMCSA Decision I. Public Participation exemption from 49 CFR 383.23, which Based upon the merits of this prescribes licensing requirements for Viewing Comments and Documents application, including Mr. Boehm’s drivers operating CMVs in interstate or To view comments, as well as extensive driving experience and safety intrastate commerce. Mr. Boehm is record, FMCSA has concluded that the documents mentioned in this preamble unable to obtain a CDL in any of the exemption would likely achieve a level as being available in the docket, go to States due to his lack of residency in the of safety that is equivalent to or greater www.regulations.gov and insert the United States. A copy of the application than the level that would be achieved docket number, ‘‘FMCSA–2012–0032 in is in Docket No. FMCSA–2012–0032. the ‘‘Keyword’’ box and click ‘‘Search.’’ The exemption would allow Mr. absent such exemption, in accordance Next, click the ‘‘Open Docket Folder’’ Boehm to operate CMVs in interstate or with § 381.305(a). button and choose the document to intrastate commerce to support Daimler Terms and Conditions for the review. If you do not have access to the field tests designed to meet future Exemption Internet, you may view the docket vehicle safety and environmental online by visiting the Docket requirements and to promote FMCSA grants Daimler and Sebastian Management Facility in Room W12–140 technological advancements in vehicle Boehm an exemption from the CDL on the ground floor of the DOT West safety systems and emissions requirement in 49 CFR 383.23 to allow Building, 1200 New Jersey Avenue SE., reductions. Mr. Boehm needs to drive Mr. Boehm to drive CMVs in this Washington, DC 20590, between 9 a.m. Daimler vehicles on public roads to country without a U.S. State-issued and 5 p.m., e.t., Monday through Friday, better understand ‘‘real world’’ CDL, subject to the following terms and except Federal holidays. environments in the U.S. market. conditions: (1) The driver and carrier must comply with all other applicable II. Legal Basis According to Daimler, Mr. Boehm will typically drive for no more than 6 hours provisions of the FMCSRs (49 CFR parts FMCSA has authority under 49 U.S.C. per day, and that 10 percent of the test 350–399); (2) the driver must be in 31136(e) and 31315 to grant exemptions driving will be on two-lane state possession of the exemption document from the Federal Motor Carrier Safety highways, while 90 percent will be on and a valid German commercial license; Regulations. FMCSA must publish a interstate highways. The driving will (3) the driver must be employed by and notice of each exemption request in the consist of no more than 200 miles per operate the CMV within the scope of his Federal Register (49 CFR 381.315(a)). day, for one to two weeks on a quarterly duties for Daimler; (4) at all times while The Agency must provide the public an basis. He will in all cases be operating a CMV under this exemption, opportunity to inspect the information accompanied by a holder of a U.S. CDL the driver must be accompanied by a relevant to the application, including who is familiar with the routes to be holder of a U.S. CDL who is familiar any safety analyses that have been traveled. with the routes traveled; (5) Daimler conducted. The Agency must also Mr. Boehm would be required to must notify FMCSA in writing within 5 provide an opportunity for public comply with all applicable Federal business days of any accident, as comment on the request. Motor Carrier Safety Regulations defined in 49 CFR 390.5, involving this The Agency reviews the safety (FMCSRs) (49 CFR parts 350–399) driver; and (6) Daimler must notify analyses and the public comments, and except the CDL provisions described in FMCSA in writing if this driver is determines whether granting the this notice. convicted of a disqualifying offense exemption would likely achieve a level Mr. Boehm holds a valid German under § 383.51 or § 391.15 of the of safety equivalent to, or greater than, commercial license, and as explained by FMCSRs. the level that would be achieved by the Daimler in its exemption request, the In accordance with 49 U.S.C. 31315 current regulation (49 CFR 381.305). requirements for that license ensure that and 31136(e), the exemption will be The decision of the Agency must be the same level of safety is met or valid for 5 years unless revoked earlier published in the Federal Register (49 exceeded as if this driver had a U.S. by the FMCSA. The exemption will be CFR 381.315(b)) with the reason for the CDL. Furthermore, according to revoked if: (1) Mr. Boehm fails to grant or denial, and, if granted, the Daimler, Mr. Boehm is familiar with the comply with the terms and conditions specific person or class of persons operation of CMVs worldwide. of the exemption; (2) the exemption receiving the exemption, and the FMCSA has previously determined results in a lower level of safety than regulatory provision or provisions from that the process for obtaining a German was maintained before it was granted; or which exemption is granted. The notice commercial license is comparable to, or (3) continuation of the exemption would must also specify the effective period of as effective as, the requirements of part be inconsistent with the goals and the exemption, and explain its terms 383, and adequately assesses the objectives of 49 U.S.C. 31315 and 31136.
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VIII. Preemption with the National Environmental Policy DEPARTMENT OF THE TREASURY In accordance with 49 U.S.C. Act (NEPA) and in other documents in Office of the Comptroller of the 31315(d), as implemented by 49 CFR the FTA administrative record for the Currency 381.600, during the period this project. Interested parties may contact exemption is in effect, no State shall either the project sponsor or the relevant FTA Regional Office for more Agency Information Collection enforce any law or regulation applicable Activities: Proposed Information to interstate or intrastate commerce that information. Contact information for FTA’s Regional Offices may be found at Collection; Submission for OMB conflicts with or is inconsistent with Review; Reduction of Permanent this exemption with respect to a firm or https://www.fta.dot.gov. This notice applies to all FTA Capital Notice person operating under the exemption. decisions on the listed project as of the AGENCY: Issued on: July 14, 2016. Office of the Comptroller of the issuance date of this notice and all laws Currency (OCC), Treasury. T.F. Scott Darling, III, under which such actions were taken, ACTION: Notice and request for comment. Acting Administrator. including, but not limited to, NEPA [42 [FR Doc. 2016–17463 Filed 7–22–16; 8:45 am] U.S.C. 4321–4375], Section 4(f) of the SUMMARY: The OCC, as part of its BILLING CODE 4910–EX–P Department of Transportation Act of continuing effort to reduce paperwork 1966 [49 U.S.C. 303], Section 106 of the and respondent burden, invites the National Historic Preservation Act [16 general public and other Federal DEPARTMENT OF TRANSPORTATION U.S.C. 470f], and the Clean Air Act [42 agencies to take this opportunity to U.S.C. 7401–7671q]. This notice does comment on a new information Federal Transit Administration not, however, alter or extend the collection as required by the Paperwork limitation period for challenges of Limitation on Claims Against a Reduction Act of 1995 (PRA). project decisions subject to previous An agency may not conduct or Proposed Public Transportation notices published in the Federal Project sponsor, and a respondent is not Register. The project and actions that required to respond to, an information AGENCY: Federal Transit Administration are the subject of this notice are: collection unless it displays a currently (FTA), DOT. Project name and location: Southwest valid Office of Management and Budget Light Rail Transit (LRT) Project, ACTION: Notice. (OMB) control number. Hennepin County, MN. Project sponsor: The OCC is soliciting comment SUMMARY: This notice announces final Metropolitan Council. Project concerning a new information collection environmental actions taken by the description: The proposed project is titled ‘‘Reduction of Permanent Capital Federal Transit Administration (FTA) approximately 14.5 miles of new Notice.’’ The OCC also is giving notice for a project in Hennepin County, MN. double-track proposed as an extension that it has sent the collection to OMB for The purpose of this notice is to of the METRO Green Line (Central review. Corridor LRT), which will operate from announce publicly the environmental DATES: Comments must be received by downtown Minneapolis through the decisions by FTA on the subject project August 24, 2016. and to activate the limitation on any communities of St. Louis Park, Hopkins, ADDRESSES: Because paper mail in the claims that may challenge these final Minnetonka, and Eden Prairie, passing Washington, DC area and at the OCC is environmental actions. in close proximity to Edina. The project subject to delay, commenters are DATES: By this notice, FTA is advising will operate primarily at-grade, with structures providing grade separation of encouraged to submit comments by the public of final agency actions email, if possible. Comments may be subject to Section 139(l) of Title 23, LRT crossings, roadways, and water bodies at specified locations. For just sent to: Legislative and Regulatory United States Code (U.S.C.). A claim Activities Division, Office of the seeking judicial review of FTA actions under one-half mile, the project will operate in a shallow light rail tunnel in Comptroller of the Currency, Attention: announced herein for the listed public 1557–NEW, 400 7th Street SW., Suite transportation project will be barred the Kenilworth Corridor, between West Lake Street and just south of the 3E–218, Mail Stop 9W–11, Washington, unless the claim is filed on or before DC 20219. In addition, comments may December 22, 2016. Kenilworth Lagoon. Proposed system elements include 16 new light rail be sent by fax to (571) 465–4326 or by FOR FURTHER INFORMATION CONTACT: Jay stations (including the Eden Prairie electronic mail to [email protected]. M. Fox, Acting Assistant Chief Counsel, Town Center Station that is deferred for You may inspect and photocopy Office of Chief Counsel, (215) 656–7258 construction at a later date), one comments in person at the OCC, 400 7th or Terence Plaskon, Environmental operations and maintenance facility, 20 Street SW., Washington, DC 20219. For Protection Specialist, Office of traction power substations, 25 signal security reasons, the OCC requires that Environmental Programs, (202) 366– bungalow sites, and other ancillary visitors make an appointment to inspect 0442. FTA is located at 1200 New Jersey facilities. Final agency actions: Section comments. You may do so by calling Avenue SE., Washington, DC 20590. 4(f) determination; a Section 106 (202) 649–6700 or, for persons who are Office hours are from 9:00 a.m. to 5:00 Memorandum of Agreement, dated July deaf or hard of hearing, TTY, (202) 649– p.m., Monday through Friday, except 13, 2016; project-level air quality 5597. Upon arrival, visitors will be Federal holidays. conformity; and a Record of Decision, required to present valid government- SUPPLEMENTARY INFORMATION: Notice is dated July 15, 2016. Supporting issued photo identification and submit hereby given that FTA has taken final documentation: Final Environmental to a security screening in order to agency actions by issuing certain Impact Statement, dated May 13, 2016. inspect and photocopy comments. approvals for the public transportation All comments received, including project listed below. The actions on the Lucy Garliauskas, attachments and other supporting project, as well as the laws under which Associate Administrator Planning and materials, are part of the public record such actions were taken, are described Environment. and subject to public disclosure. Do not in the documentation issued in [FR Doc. 2016–17469 Filed 7–22–16; 8:45 am] include any information in your connection with the project to comply BILLING CODE P comment or supporting materials that
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you consider confidential or DEPARTMENT OF THE TREASURY DEPARTMENT OF THE TREASURY inappropriate for public disclosure. Additionally, please send a copy of Office of the Comptroller of the Office of the Comptroller of the your comments by mail to: OCC Desk Currency Currency Officer, 1557–NEW, U.S. Office of Agency Information Collection Management and Budget, 725 17th [Docket ID OCC–2016–0019] Street NW., #10235, Washington, DC Activities: Information Collection 20503 or by email to: oira submission@ Minority Depository Institutions Renewal; Submission for OMB Review; omb.eop.gov. Advisory Committee Disclosure and Reporting of CRA- FOR FURTHER INFORMATION CONTACT: Related Agreements Shaquita Merritt, OCC Clearance AGENCY: Office of the Comptroller of the Currency, Department of the Treasury. AGENCY: Office of the Comptroller of the Officer, at (202) 649–5490 or, for Currency, Treasury. persons who are deaf or hard of hearing, ACTION: Notice. ACTION: Notice and request for TTY, (202) 649–5597, Legislative and comment. Regulatory Activities Division, Office of SUMMARY: The Comptroller of the the Comptroller of the Currency, 400 7th Currency has determined that the SUMMARY: The Office of the Comptroller Street SW., Washington, DC 20219. renewal of the charter of the OCC of the Currency (OCC), as part of its SUPPLEMENTARY INFORMATION: The OCC Minority Depository Institutions continuing effort to reduce paperwork is seeking approval for a proposed new Advisory Committee (MDIAC) is and respondent burden, invites the information collection: necessary and in the public interest to general public and other Federal Title of Collection: Reduction of provide advice and information about agencies to take this opportunity to Permanent Capital Notice. the current circumstances and future comment on a continuing information OMB Control No.: 1557–NEW. development of minority depository collection, as required by the Paperwork Type of Review: New collection. institutions, in accordance with the Reduction Act of 1995 (PRA). Affected Public: Businesses or other goals established by section 308 of the An agency may not conduct or for-profit. Financial Institutions Reform, Recovery, sponsor, and a respondent is not Estimated Number of Respondents: 2. and Enforcement Act of 1989 (FIRREA), required to respond to, an information Estimated Frequency of Response: On Pub. L. 101–73, Title III, 103 Stat. 353, collection unless it displays a currently occasion. 12 U.S.C. 1463 note. Estimated Total Burden: 40 minutes. valid OMB control number. Description: Under 12 CFR 5.55, the DATES: The charter of the OCC MDIAC The OCC is soliciting comment OCC will review the information is renewed for a two-year period that concerning the renewal of its submitted by a Federal savings began on June 28, 2016. information collection titled, association in its application or notice FOR FURTHER INFORMATION CONTACT: ‘‘Disclosure and Reporting of CRA- requesting approval to issue a capital Beverly F. Cole, Deputy Comptroller for Related Agreements.’’ The OCC also is distribution to determine whether the Compliance Supervision and Designated giving notice that it has sent the Federal savings association’s request is Federal Officer, (202) 649–5420, Office collection to OMB for review. in accordance with existing statutory of the Comptroller of the Currency, 400 DATES: Comments must be received by and regulatory criteria. In addition, the 7th Street SW., Washington, DC 20219. August 24, 2016. information provides the OCC with a SUPPLEMENTARY INFORMATION: Notice of ADDRESSES: Because paper mail in the mechanism for monitoring reductions in the renewal of the MDIAC charter is Washington, DC area and at the OCC is capital since these distributions may hereby given under section 10(a)(2) of subject to delay, commenters are place the Federal savings association at the Federal Advisory Committee Act, 5 encouraged to submit comments by risk. U.S.C. App. (1988), and with the email, if possible. Comments may be On April 26, 2016, the OCC issued a approval of the Secretary of the sent to: Legislative and Regulatory 60-day notice soliciting comment on Treasury. The Comptroller of the Activities Division, Office of the this proposed information collection, 81 Currency has determined that the Comptroller of the Currency, Attention: FR 24690. No comments were received. renewal of the MDIAC charter is 1557–0219, 400 7th Street SW., Suite Comments continue to be solicited on: necessary and in the public interest to 3E–218, Mail Stop 9W–11, Washington, (a) Whether the proposed collection of provide advice and information about DC 20219. In addition, comments may information is necessary for the proper the current circumstances and future be sent by fax to (571) 465–4326 or by performance of the functions of the development of minority depository electronic mail to [email protected]. OCC; institutions, in accordance with the You may personally inspect and (b) The accuracy of OCC’s estimate of photocopy comments at the OCC, 400 the burden of the proposed information goals established by section 308 of FIRREA. The goals of section 308 are to 7th Street SW., Washington, DC 20219. collection; For security reasons, the OCC requires (c) Ways to enhance the quality, preserve the present number of minority that visitors make an appointment to utility, and clarity of the information to depository institutions, preserve the inspect comments. You may do so by be collected; minority character of minority (d) Ways to minimize the burden of depository institutions in cases calling (202) 649–6700 or, for persons the information collection on involving mergers or acquisitions, who are deaf or hard of hearing, TTY, respondents, including through the use provide technical assistance, and (202) 649–5597. Upon arrival, visitors of information technology. encourage the creation of new minority will be required to present valid depository institutions. government-issued photo identification Dated: July 19, 2016. and submit to security screening in Karen Solomon, Dated: July 19, 2016. order to inspect and photocopy Deputy Chief Counsel, Office of the Thomas J. Curry, comments. Comptroller of the Currency. Comptroller of the Currency. All comments received, including [FR Doc. 2016–17490 Filed 7–22–16; 8:45 am] [FR Doc. 2016–17489 Filed 7–22–16; 8:45 am] attachments and other supporting BILLING CODE 4810–33–P BILLING CODE 4810–33–P materials, are part of the public record
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and subject to public disclosure. Do not the public and the appropriate agency.3 of awareness of the filing requirements include any information in your The parties also must file a report in § 35.6 was not considered as this is comment or supporting materials that annually with the appropriate agency not within the scope of the PRA. you consider confidential or concerning the disbursement, receipt, Comments continue to be invited on: inappropriate for public disclosure. and use of funds or other resources (a) Whether the collection of Additionally, please send a copy of under the agreement.4 The collections of information is necessary for the proper your comments by mail to: OCC Desk information in CRA Sunshine performance of the functions of the Officer, 1557–0219, U.S. Office of implement these statutorily mandated OCC, including whether the information Management and Budget, 725 17th disclosure and reporting requirements. has practical utility; Street NW., #10235, Washington, DC The parties to the agreement may (b) The accuracy of the OCC’s 20503, or by email to: oira submission@ request confidential treatment of estimate of the information collection omb.eop.gov. proprietary and confidential burden; FOR FURTHER INFORMATION CONTACT: information in an agreement or annual (c) Ways to enhance the quality, Shaquita Merritt, OCC Clearance report.5 utility, and clarity of the information to Officer, (202) 649–5490 or, for persons The information collections are found be collected; who are deaf or hard of hearing, TTY, in 12 CFR 35.4(b); 35.6(b)–(d); and (d) Ways to minimize the burden of (202) 649–5597, Legislative and 35.7(b) and (f). the collection on respondents, including Regulatory Activities Division, Office of Type of Review: Extension of a through the use of automated collection the Comptroller of the Currency, currently approved collection. techniques or other forms of information Washington, DC 20219. Affected Public: Individuals; technology; and SUPPLEMENTARY INFORMATION: The OCC Businesses or other for-profit. (e) Estimates of capital or start-up is proposing to extend, without change, Estimated Number of Respondents: costs and costs of operation, OMB approval of the following 14. maintenance, and purchase of services information collection: Estimated Total Annual Burden: to provide information. Title: Disclosure and Reporting of 1,026. Dated: July 19, 2016. CRA-Related Agreements. Comments: On March 9, 2016, the Karen Solomon, OMB Control No.: 1557–0219. OCC issued a 60-day notice soliciting Description: National banks, Federal Deputy Chief Counsel, Office of the comment on this information collection, Comptroller of the Currency. savings associations, and their affiliates 81 FR 12565. The OCC received one [FR Doc. 2016–17488 Filed 7–22–16; 8:45 am] (institutions) occasionally enter into comment from an individual. agreements with nongovernmental The commenter stated that the BILLING CODE 4810–33–P entities or persons (NGEPs) that are collection is necessary and has practical related to their Community utility. The commenter suggested that DEPARTMENT OF THE TREASURY Reinvestment Act (CRA) the OCC amend 12 CFR 35.6 to require responsibilities. Section 48 of the that national banks and Federal savings Office of the Comptroller of the Federal Deposit Insurance Act (FDI associations publish covered agreements Currency Act) 1 requires disclosure of certain of on their Web sites and that the OCC post these agreements and imposes reporting them on its Web site as well. The CRA Agency Information Collection requirements on institutions and other Sunshine statute set forth in section 48 Activities: Information Collection insured depository institutions (IDIs), of the FDI Act requires that the Federal Renewal; Submission for OMB Review; their affiliates, and NGEPs. As banking agencies’ CRA Sunshine Interagency Guidance on Asset mandated by the FDI Act, the OCC, the regulations protect proprietary and Securitization Activities Federal Deposit Insurance Corporation, confidential information of parties.6 In and the Federal Reserve Board issued order to comply with that statutory AGENCY: Office of the Comptroller of the regulations to implement these requirement, the OCC will make Currency (OCC), Treasury. disclosure and reporting requirements. covered agreements and annual reports ACTION: Notice and request for The disclosure and reporting provisions available to the public in accordance comment. of these regulations constitute with the Freedom of Information Act SUMMARY: The OCC, as part of its collections of information under the (FOIA) 7 and the OCC’s rules regarding continuing effort to reduce paperwork PRA. The regulation issued by the OCC the availability of information under the and respondent burden, invites the is codified at 12 CFR part 35, and the FOIA.8 general public and other Federal collections of information contained in The commenter believed that the agencies to comment on a continuing that regulation are known as ‘‘CRA burden estimates may be low as information collection as required by Sunshine.’’ institutions may not be aware of the the Paperwork Reduction Act of 1995 Section 48 of the FDI Act applies to filing requirements in § 35.6(d). The (PRA). written agreements that: (1) Are made in commenter requested that the OCC In accordance with the requirements fulfillment of the CRA; (2) involve funds discuss how the estimates were derived of the PRA, the OCC may not conduct or other resources of an IDI or affiliate and whether the possibility of or sponsor, and the respondent is not with an aggregate value of more than underreporting was factored into the required to respond to, an information $10,000 in a year or loans with an estimates. The estimates were obtained collection unless it displays a currently aggregate principal value of more than by counting the number of actual filings valid Office of Management and Budget $50,000 in a year; and (3) are entered received. Failure to report due to a lack into by an IDI or affiliate of an IDI and (OMB) control number. 2 The OCC is soliciting comment an NGEP. 3 12 U.S.C. 1831y(a). The parties to a covered agreement 4 12 U.S.C. 1831y(b)–(c). concerning renewal of its information must make the agreement available to 5 12 CFR 35.8; see 12 U.S.C. 1831y(h)(2)(A). collection titled, ‘‘Interagency Guidance 6 12 U.S.C. 1831y(h)(2)(A). on Asset Securitization Activities.’’ The 1 12 U.S.C. 1831y. 7 5 U.S.C. 552 et seq. OCC also is giving notice that it has sent 2 12 U.S.C. 1831y(e). 8 12 CFR part 4, subpart b; see 12 CFR 35.8. the collection to OMB for review.
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DATES: Comments must be submitted on retained interests, and maintain a other Federal agencies to take this or before August 24, 2016. management information system to opportunity to comment on proposed ADDRESSES: Because paper mail in the monitor asset securitization activities. and/or continuing information Washington, DC area and at the OCC is An institution’s management uses the collections, as required by the subject to delay, commenters are information collected to ensure the safe Paperwork Reduction Act of 1995, encouraged to submit comments by and sound operation of the institution’s Public Law 104–13 (44 U.S.C. email, if possible. Comments may be asset securitization activities. The OCC 3506(c)(2)(A)). Currently, the IRS is sent to: Legislative and Regulatory uses the information to evaluate the soliciting comments concerning Activities Division, Office of the quality of an institution’s risk Determination of Interest Expense Comptroller of the Currency, Attention: management practices. Deduction of Foreign Corporation. 1557–0217, 400 7th Street SW., Suite Affected Public: Businesses or other DATES: Written comments should be 3E–218, Mail Stop 9W–11, Washington, for-profit. received on or before September 23, DC 20219. In addition, comments may Burden Estimates: 2016 to be assured of consideration. Estimated Number of Respondents: 35 be sent by fax to (571) 465–4326 or by ADDRESSES: Direct all written comments electronic mail to [email protected]. national banks and Federal savings to Tuawana Pinkston, Internal Revenue You may personally inspect and associations. Service, Room 6526, 1111 Constitution photocopy comments at the OCC, 400 Estimated Annual Burden: 1,827 Avenue NW., Washington, DC 20224. 7th Street SW., Washington, DC 20219. hours. Frequency of Response: On occasion. FOR FURTHER INFORMATION CONTACT: For security reasons, the OCC requires Requests for additional information or that visitors make an appointment to Comments: On April 27, 2016, the OCC issued a 60-day notice soliciting copies of the collection tools should be inspect comments. You may do so by directed to Kerry Dennis, Internal calling (202) 649–6700 or, for persons comment on the information collection, 81 FR 24939. No comments were Revenue Service, Room 6526, 1111 who are deaf or hard of hearing, TTY, Constitution Avenue NW., Washington, (202) 649–5597. Upon arrival, visitors received. Comments continue to be invited on: DC 20224, or through the internet at will be required to present valid [email protected]. government-issued photo identification (a) Whether the collection of SUPPLEMENTARY INFORMATION: and submit to security screening in information is necessary for the proper Title: Determination of Interest order to inspect and photocopy performance of the functions of the Expense Deduction of Foreign comments. OCC, including whether the information Corporation. All comments received, including has practical utility; OMB Number: 1545–2030. Form attachments and other supporting (b) The accuracy of the OCC’s Number: TD 9465. materials, are part of the public record estimate of the information collection burden; Abstract: This document contains and subject to public disclosure. Do not final regulations under Section 882(c) of include any information in your (c) Ways to enhance the quality, utility, and clarity of the information to the Internal Revenue Code concerning comment or supporting materials that the determination of the interest you consider confidential or be collected; (d) Ways to minimize the burden of expense deduction of foreign inappropriate for public disclosure. corporations engaged in a trade or Additionally, please send a copy of the collection on respondents, including business within the United States. your comments by mail to: OCC Desk through the use of automated collection These final regulations conforms the Officer, 1557–0217, U.S. Office of techniques or other forms of information interest expense rules to recent U.S. Management and Budget, 725 17th technology; and Income Tax Treaty agreements and Street, NW., #10235, Washington, DC (e) Estimates of capital or start-up adopt other changes to improve 20503 or by email to: oira submission@ costs and costs of operation, compliance. omb.eop.gov. maintenance, and purchase of services to provide information. Current Actions: There are no changes FOR FURTHER INFORMATION CONTACT: to the previously approved burden of Dated: July 19, 2016. Shaquita Merritt, OCC Clearance this existing collection. Officer, (202) 649–5490 or, for persons Karen Solomon, Type of Review: Extension of a who are deaf or hard of hearing, TTY, Deputy Chief Counsel, Office of the currently approved collection. (202) 649–5597, Legislative and Comptroller of the Currency. Affected Public: Businesses or other Regulatory Activities Division, Office of [FR Doc. 2016–17491 Filed 7–22–16; 8:45 am] for-profit organizations. the Comptroller of the Currency, 400 7th BILLING CODE P Estimated Number of Respondents: Street SW., Suite 3E–218, Mail Stop 75. 9W–11, Washington, DC 20219. Estimated Time per Respondent: 28 SUPPLEMENTARY INFORMATION: The OCC DEPARTMENT OF THE TREASURY min. is requesting that OMB extend its Estimated Total Annual Burden Internal Revenue Service approval of the following information Hours: 35 hours. collection: Proposed Collection; Comment The following paragraph applies to all Title: Interagency Guidance on Asset Request for Regulation Project. of the collections of information covered Securitization Activities. by this notice: OMB Control No.: 1557–0217. AGENCY: Internal Revenue Service (IRS), An agency may not conduct or Type of Review: Regular. Treasury. sponsor, and a person is not required to Description: This information ACTION: Notice and request for respond to, a collection of information collection applies to institutions comments. unless the collection of information engaged in asset securitization activities displays a valid OMB control number. and provides that any institution SUMMARY: The Department of the Books or records relating to a collection engaged in these activities should Treasury, as part of its continuing effort of information must be retained as long maintain a written asset securitization to reduce paperwork and respondent as their contents may become material policy, document the fair value of burden, invites the general public and in the administration of any internal
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revenue law. Generally, tax returns and copies of the regulation should be information shall have practical utility; tax return information are confidential, directed to Kerry Dennis at Internal (b) the accuracy of the agency’s estimate as required by 26 U.S.C. 6103. Revenue Service, Room 6526, 1111 of the burden of the collection of Request for Comments: Comments Constitution Avenue NW., Washington, information; (c) ways to enhance the submitted in response to this notice will DC 20224, or through the internet at quality, utility, and clarity of the be summarized and/or included in the [email protected]. information to be collected; (d) ways to request for OMB approval. All SUPPLEMENTARY INFORMATION: minimize the burden of the collection of comments will become a matter of Title: Continuity of Interest. information on respondents, including public record. Comments are invited on: OMB Number: 1545–1691. through the use of automated collection (a) Whether the collection of Regulation Project Number: REG– techniques or other forms of information information is necessary for the proper 120882–97 (TD 8898). technology; and (e) estimates of capital performance of the functions of the Abstract: Taxpayers who entered into or start-up costs and costs of operation, agency, including whether the a binding agreement on or after January maintenance, and purchase of services information shall have practical utility; 28, 1998 (the effective date of § 1.368– to provide information. (b) the accuracy of the agency’s estimate 1), and before the effective date of the Approved: July 12, 2016. of the burden of the collection of final regulations under § 1.368–1(e) may Tuawana Pinkston, information; (c) ways to enhance the request a private letter ruling permitting IRS Reports Clearance Officer. quality, utility, and clarity of the them to apply § 1.368–1(e) to their [FR Doc. 2016–17468 Filed 7–22–16; 8:45 am] information to be collected; (d) ways to transaction. A private letter ruling will BILLING CODE 4830–01–P minimize the burden of the collection of not be issued unless the taxpayer information on respondents, including establishes to the satisfaction of the IRS, through the use of automated collection that there is not a significant risk of DEPARTMENT OF THE TREASURY techniques or other forms of information different parties to the transaction technology; and (e) estimates of capital taking inconsistent positions, for U.S. Internal Revenue Service or start-up costs and costs of operation, tax purposes with respect to the maintenance, and purchase of services applicability of § 1.368–1(e) to the Proposed Collection; Comment to provide information. transaction. Request for Form 14693 Current Actions: There is no change Approved: July 6, 2016. AGENCY: Internal Revenue Service (IRS), in the paperwork burden previously Tuawana Pinkston, Treasury. approved by OMB. This regulation is IRS Reports Clearance Officer. ACTION: Notice and request for [FR Doc. 2016–17464 Filed 7–22–16; 8:45 am] being submitted for renewal purposes only. comments. BILLING CODE 4830–01–P Type of Review: Extension of a SUMMARY: The Department of the currently approved collection. Treasury, as part of its continuing effort DEPARTMENT OF THE TREASURY Affected Public: Businesses and other to reduce paperwork and respondent for-profit organizations. burden, invites the general public and Internal Revenue Service Estimated Number of Respondents: other Federal agencies to take this 10. opportunity to comment on proposed Proposed Collection; Comment Estimated Time per Respondent: 150 and/or continuing information Request for Regulation Project hours. collections, as required by the Estimated Total Annual Burden AGENCY: Internal Revenue Service (IRS), Paperwork Reduction Act of 1995, Hours: 1,500. Treasury. Public Law 104–13 (44 U.S.C. The following paragraph applies to all 3506(c)(2)(A)). Currently, the IRS is ACTION: Notice and request for of the collections of information covered comments. soliciting comments concerning Form by this notice: 14693, Application for Reduced Rate of An agency may not conduct or SUMMARY: The Department of the Withholding on Whistleblower Award Treasury, as part of its continuing effort sponsor, and a person is not required to Payment. respond to, a collection of information to reduce paperwork and respondent DATES: Written comments should be burden, invites the general public and unless the collection of information displays a valid OMB control number. received on or before September 23, other Federal agencies to take this 2016 to be assured of consideration. opportunity to comment on proposed Books or records relating to a collection of information must be ADDRESSES: Direct all written comments and/or continuing information to Christie Preston, Internal Revenue collections, as required by the retained as long as their contents may become material in the administration Service, Room 6129, 1111 Constitution Paperwork Reduction Act of 1995, Avenue NW., Washington, DC 20224. Public Law 104–13 (44 U.S.C. of any internal revenue law. Generally, FOR FURTHER INFORMATION CONTACT: 3506(c)(2)(A)). Currently, the IRS is tax returns and tax return information Requests for additional information or soliciting comments concerning are confidential, as required by 26 copies of the forms and instructions Continuity of Interest. U.S.C. 6103. Request for Comments: Comments should be directed to Allan Hopkins, at DATES: Written comments should be submitted in response to this notice will Internal Revenue Service, Room 6129, received on or before September 23, be summarized and/or included in the 1111 Constitution Avenue NW., 2016 to be assured of consideration. request for OMB approval. All Washington, DC 20224, or through the ADDRESSES: Direct all written comments comments will become a matter of Internet at [email protected]. to Tuawana Pinkston, Internal Revenue public record. Comments are invited on: SUPPLEMENTARY INFORMATION: Service, Room 6526, 1111 Constitution (a) Whether the collection of Title: Application for Reduced Rate of Avenue NW., Washington, DC 20224. information is necessary for the proper Withholding on Whistleblower Award FOR FURTHER INFORMATION CONTACT: performance of the functions of the Payment. Requests for additional information or agency, including whether the OMB Number: 1545–XXXX.
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Form Number: Form 14693. Estimated Total Annual Burden information is necessary for the proper Abstract: The Application for Hours: 75. performance of the functions of the Reduced Rate of Withholding on The following paragraph applies to all agency, including whether the Whistleblower Award Payment will be of the collections of information covered information shall have practical utility; used by the whistleblower to apply for by this notice: (b) the accuracy of the agency’s estimate a reduction in withholding to minimize An agency may not conduct or of the burden of the collection of the likelihood of the IRS over sponsor, and a person is not required to information; (c) ways to enhance the respond to, a collection of information withholding tax from award payments quality, utility, and clarity of the unless the collection of information providing whistleblowers with a pre- information to be collected; (d) ways to award payment opportunity to displays a valid OMB control number. Books or records relating to a collection minimize the burden of the collection of substantiate their relevant attorney fees information on respondents, including and court costs. The Whistleblower of information must be retained as long as their contents may become material through the use of automated collection Office will review and evaluate the form techniques or other forms of information and calculate the rate. in the administration of any internal revenue law. Generally, tax returns and technology; and (e) estimates of capital Current Actions: This new form is tax return information are confidential, or start-up costs and costs of operation, being submitted for OMB approval. as required by 26 U.S.C. 6103. maintenance, and purchase of services Type of Review: New collection. Request for Comments: Comments to provide information. Affected Public: Individuals or submitted in response to this notice will Approved: July 12, 2016. households. be summarized and/or included in the Estimated Number of Respondents: request for OMB approval. All Allan Hopkins, 100. comments will become a matter of Tax Analyst. Estimated Time per Respondent: 45 public record. Comments are invited on: [FR Doc. 2016–17465 Filed 7–22–16; 8:45 am] minutes. (a) Whether the collection of BILLING CODE 4830–01–P
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Part II
Department of the Treasury
Office of the Comptroller of the Currency
Federal Reserve System
Federal Deposit Insurance Corporation
12 CFR Parts 25, 195, 228, et al. Community Reinvestment Act; Interagency Questions and Answers Regarding Community Reinvestment; Guidance
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DEPARTMENT OF THE TREASURY FOR FURTHER INFORMATION CONTACT: The Agencies first published the OCC: Bobbie K. Kennedy, Bank Questions and Answers under the Office of the Comptroller of the Examiner, Compliance Policy Division, auspices of the Federal Financial Currency (202) 649–5470; Vonda Eanes, National Institutions Examination Council Bank Examiner and District Community (FFIEC) in 1996 (61 FR 54647). The 12 CFR Parts 25 and 195 Affairs Officer, Community Affairs, Questions and Answers were last (202) 649–6420; or Margaret Hesse, published in full by the Agencies on [Docket ID OCC–2014–0021] Senior Counsel, Community and March 11, 2010 (2010 Questions and FEDERAL RESERVE SYSTEM Consumer Law Division, (202) 649– Answers) (75 FR 11642). In 2013, the 6350, Office of the Comptroller of the Agencies adopted revised guidance on 12 CFR Part 228 Currency, 400 7th Street SW., community development topics that Washington, DC 20219. amended and superseded five Q&As and [Docket No. OP–1497] Board: Catherine M.J. Gates, Senior added two new Q&As (2013 Questions Project Manager, (202) 452–2099; or and Answers) (78 FR 69671), which FEDERAL DEPOSIT INSURANCE Theresa A. Stark, Senior Project supplemented the 2010 Questions and CORPORATION Manager, (202) 452–2302, Division of Answers. This document supplements, Consumer and Community Affairs, revises, republishes, and supersedes the 12 CFR Part 345 Board of Governors of the Federal 2010 Questions and Answers and the Reserve System, 20th Street and 2013 Questions and Answers. Community Reinvestment Act; The Questions and Answers are Interagency Questions and Answers Constitution Avenue NW., Washington, DC 20551. grouped by the provision of the CRA Regarding Community Reinvestment; regulations that they discuss, are Guidance FDIC: Patience R. Singleton, Senior Policy Analyst, Supervisory Policy presented in the same order as the AGENCY: Office of the Comptroller of the Branch, (202) 898–6859; Sharon B. regulatory provisions, and employ an Currency, Treasury (OCC); Board of Vejvoda, Senior Examination Specialist, abbreviated method of citing to the Governors of the Federal Reserve Compliance and CRA Examinations regulations. For example, for thrifts, the System (Board); Federal Deposit Branch, (202) 898–3881; Surya Sen, small savings association performance Insurance Corporation (FDIC). Section Chief, Supervisory Policy standards appear at 12 CFR 195.26; for national banks, the small bank ACTION: Guidance on the interpretation Branch, (202) 898–6699, Division of performance standards appear at 12 CFR and application of the Community Depositor and Consumer Protection; or 25.26; for Federal Reserve System Reinvestment Act regulations. Richard M. Schwartz, Counsel (202) 898–7424; or Sherry Ann Betancourt, member banks supervised by the Board, SUMMARY: The OCC, Board, and FDIC Counsel, (202) 898–6560, Legal they appear at 12 CFR 228.26; and for (the Agencies) are adopting as final Division, Federal Deposit Insurance state nonmember banks, they appear at revisions to the Interagency Questions Corporation, 550 17th Street NW., 12 CFR 345.26. Accordingly, the citation and Answers Regarding Community Washington, DC 20429. would be to 12 CFR ll.26. Each Q&A is numbered using a system that Reinvestment (Questions and Answers) SUPPLEMENTARY INFORMATION: based on the proposal issued on consists of the regulatory citation and a September 10, 2014 addressing I. Background number, connected by a dash. For alternative systems for delivering retail The Agencies implement the example, the first Q&A addressing 12 banking services; community Community Reinvestment Act (CRA) (12 CFR ll.26 would be identified as development-related issues; and the U.S.C. 2901 et seq.) through their CRA § ll.26–1. Although a particular Q&A may qualitative aspects of performance, regulations. See 12 CFR parts 25, 195, provide guidance on one regulatory including innovative or flexible lending 228, and 345. The CRA is designed to provision, e.g., 12 CFR ll.22, which practices and the responsiveness and encourage regulated financial relates to the lending test applicable to innovativeness of an institution’s loans, institutions to help meet the credit large institutions, its content may also qualified investments, and community needs of their entire communities. The be applicable to, for example, small development services. The Agencies are CRA regulations establish the institutions, which are evaluated clarifying nine of the 10 proposed framework and criteria by which the pursuant to small institution questions and answers (Q&A), revising Agencies assess an institution’s record performance standards found at 12 CFR four existing Q&As for consistency, and of helping to meet the credit needs of its ll.26. Thus, readers with a particular adopting two new Q&As. The Agencies community, including low- and interest in small institution issues, for are not adopting one of the proposed moderate-income neighborhoods, example, should review Q&As relevant revisions to guidance that addressed the consistent with safe and sound to other financial institutions as well. availability and effectiveness of retail operations. The regulations provide banking services. Finally, the Agencies different evaluation standards for A. The 2014 Proposal and Overview of are making technical corrections to the institutions of different asset sizes and Comments Questions and Answers to update cross- types. On September 10, 2014, the Agencies references and remove references The Agencies publish the Questions proposed to revise six existing Q&As.2 related to the Office of Thrift 1 and Answers to provide guidance on Two Q&As addressed the availability Supervision (OTS) as obsolete. The the interpretation and application of the and effectiveness of retail banking Agencies are publishing all of the new CRA regulations to agency personnel, services 3 and one Q&A addressed and revised Q&As, as well as those financial institutions, and the public. innovative or flexible lending Q&As that were published in 2010 and practices.4 The other three proposed 2013 and that remain in effect in this 1 Throughout this document, ‘‘Questions and final guidance. Answers’’ refers to the ‘‘Interagency Questions and Answers Regarding Community Reinvestment’’ in 2 75 FR 53838 (Sept. 10, 2014). DATES: This document goes into effect its entirety; ‘‘Q&A’’ refers to an individual question 3 Q&As § ll.24(d)–1 and § ll.24(d)(3)–1. on July 25, 2016. and answer within the Questions and Answers. 4 Q&A § ll.22(b)(5)–1.
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revised Q&As addressed community as well as outreach for bankers and ‘‘support permanent job creation, development-related issues, including other interested parties. retention, and/or improvement for economic development, community persons who are currently low- or II. Revisions to Existing Q&As development loans, and activities that moderate-income, or support permanent are considered to revitalize or stabilize A. Community Development job creation, retention, and/or an underserved nonmetropolitan improvement either in low- or 5 Community development is an middle-income geography. The important component of community moderate-income geographies or in Agencies also proposed to add four new reinvestment and is considered in the areas targeted for redevelopment by Federal, state, local, or tribal Q&As, two of which addressed CRA evaluations of financial community development services,6 and governments.’’ The Q&A further institutions of all types and sizes. two of which provided general guidance explained, ‘‘[t]he Agencies will presume Community development activities are on responsiveness and innovativeness.7 that any loan to or investment in a considered under the regulations’ large Together, the Agencies received 126 SBDC, SBIC, Rural Business Investment institution, intermediate small different comment letters on the Company, New Markets Venture Capital institution, and wholesale and limited proposed Q&As, plus over 900 form Company, or New Markets Tax Credit- purpose institution performance tests. letter submissions. The commenters eligible Community Development Entity See 12 CFR ll.22(b)(4), ll.23, included financial institutions and their promotes economic development.’’ ll ll ll trade associations (collectively, industry .24(e), .26(c), and .25. In The Agencies proposed to revise commenters), community development addition, small institutions may use existing Q&A § ll.12(g)(3)–1 to clarify advocates and consumer organizations community development activities to what is meant by the phrase ‘‘promote (collectively, community organization receive consideration toward an economic development,’’ and to better commenters), state bank supervisors, outstanding rating. The Agencies align this Q&A with other guidance Federal agencies, and other interested believe that community development provided in existing Q&As § ll.12(i)– parties. generally improves the circumstances 1 and § ll.12(i)–3 regarding Most commenters supported the for low- and moderate-income consideration of economic development Agencies’ efforts to clarify the CRA individuals and stabilizes and activities undertaken by financial guidance. Some commenters also revitalizes the communities in which institutions. Further, the Agencies suggested revisions to the proposed new they live or work. proposed to revise the guidance to add and revised Q&As, as well as posed The Agencies proposed to provide additional examples that would questions or stated concerns about the additional clarification of three Q&As demonstrate a purpose of economic Q&As. Comments received by the addressing community development- development, such as workforce Agencies on each revised or new related topics. development and technical assistance proposed Q&A are discussed in further i. Economic Development support for small businesses. In detail below in Parts II and III. addition, the Agencies requested public The CRA regulations define B. Summary of Final Q&As comment on seven questions regarding community development to include the proposed revisions to the Q&A. The Agencies are adopting nine of the ‘‘activities that promote economic The Agencies received 40 comments 10 proposed Q&As with clarifications to development by financing businesses or addressing proposed revised Q&A reflect commenters’ suggestions. Parts II farms that meet the size eligibility § ll.12(g)(3)–1. Most commenters and III below discuss the clarifications standards of the Small Business provided general comments about the made to these nine Q&As. Further, as Administration’s Development proposed revised Q&A, with relatively discussed more fully below in Part Company (SBDC) or Small Business few responding to the seven specific II.C.i., in response to comments Investment Company (SBIC) programs questions posed by the Agencies. received, the Agencies are not adopting (13 CFR 121.301) or have gross annual Commenters generally supported the as final the proposed revisions to Q&A revenues of $1 million or less.’’ See 12 Agencies’ efforts to clarify the types of § ll.24(d)–1, one of the Q&As that CFR ll.12(g)(3). The Questions and activities that promote economic addresses the availability and Answers provide additional guidance development. One industry commenter effectiveness of retail banking services. on activities that promote economic mentioned that changing the format to The Agencies are also revising four development in Q&As § ll.12(g)(3)–1, a bulleted list of activities that additional existing Q&As 8 and adopting § ll.12(i)–1, § ll.12(i)–3, and demonstrate a purpose of economic two new Q&As 9 based on questions and § ll.12(t)–4. development is helpful. suggestions provided by the Existing Q&A § ll.12(g)(3)–1 A few industry commenters suggested commenters. Finally, as discussed in explained the phrase ‘‘promote eliminating the purpose test altogether, Part IV, the Agencies have made economic development.’’ This Q&A asserting that the regulations require technical corrections to 25 Q&As to stated that activities promote economic only that activities relate to businesses update, for example, regulatory development by financing small that meet Small Business references, addresses, and references businesses or farms if they meet two Administration (SBA) size-eligibility related to the former OTS. ‘‘tests’’: (i) A ‘‘size test’’ (the requirements. However, the Agencies As has been done in the past, the beneficiaries of the activity must meet note the intent of the purpose test is to Agencies intend to provide training on the size eligibility standards of the explain what is meant by the phrase all aspects of the new and revised SBDC or SBIC programs or have gross ‘‘promote economic development.’’ The Questions and Answers for examiners, annual revenues of $1 million or less); purpose test ensures that examiners and (ii) a ‘‘purpose test,’’ which is consider only activities that promote 5 Q&As § ll.12(g)(3)–1; § ll.12(h)–1; and intended to ensure that a financial economic development as activities § ll.12(g)(4)(iii)–4. institution’s activities promote with a primary purpose of community 6 Q&As § ll.24(a)–1 and § ll.24(e)–2. 7 Q&As § ll.21(a)–3 and § ll.21(a)–4. economic development consistent with development. Other loans to small 8 Q&As § ll.12(g)–1, § ll.12(i)–3, § ll.12(t)– the CRA regulations. Existing Q&A businesses and small farms are 4, and § ll.26(c)(3)–1. § ll.12(g)(3)–1 stated that activities considered as retail loans if they meet 9 Q&As § ll.12(g)–4 and § ll.24(d)(4)–1. promote economic development if they certain loan-size standards (see 12 CFR
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ll.12(v) and (w)); larger loans to small activities benefit low- or moderate- workforce development programs, businesses and small farms that do not income individuals is to provide promote economic development. meet the purpose test would not be evidence of low-wage jobs, which is not The Agencies note that only one of considered in a CRA evaluation as small consistent with the spirit or intent of the the examples in the final Q&A explicitly business or small farm loans. CRA. These commenters also expressed refers to permanent job creation, Furthermore, they would not be concerns that the proposal did not retention, and/or improvement for low- considered as community development include examples of methods that could or moderate-income persons. The loans, unless they have an alternate be used to demonstrate that the persons Agencies encourage activities that community development purpose as for whom jobs are created, retained, or promote economic development defined in 12 CFR ll.12(g). improved are low- or moderate-income, through opportunities for low- and The Agencies specifically asked what and asked that the Agencies incorporate moderate-income individuals to obtain information is available to demonstrate examples into the final Q&A. higher wage jobs, such as through that an activity meets the size and The Agencies are adopting revisions private industry collaborations with purpose tests. One community to existing Q&A § ll.12(g)(3)–1 largely workforce development programs for organization commenter suggested that as proposed, but with additional unemployed persons and are clarifying examiners consider the size of the clarifications. that examiners will consider the business by revenues or, alternatively, First, the Agencies recognize that qualitative aspects of performance the mission statement of the financial institutions may rely on a related to all activities that promote intermediary lender, if the statement variety of methods to demonstrate that economic development. In particular, provides sufficient detail on the types of activities promote economic activities will be considered more businesses served, to demonstrate an development. To make clear that responsive to community needs if a activity meets the size test. A few financial institutions may provide majority of jobs created, retained, and/ industry commenters suggested that all various types of information to or improved benefit low- or moderate- activities that support small businesses demonstrate that an activity meets the income individuals. should be presumed to qualify and meet purpose test, the Agencies have added The Agencies also note that Q&A the purpose test. a statement in the final Q&A clarifying § ll.12(g)(2)–1 provides examples of As noted above, existing Q&A § ll that examiners will employ appropriate ways in which an institution could .12(g)(3)–1 explained that the Agencies flexibility in reviewing any information determine that community services and, will presume that any loan to or provided by a financial institution that therefore, other types of community investment in a SBDC, SBIC, Rural reasonably demonstrates that the development activities, including Business Investment Company, New purpose, mandate, or function of an economic development, are targeted to Markets Venture Capital Company, or activity meets the purpose test. low- or moderate-income individuals. In New Markets Tax Credit-eligible In addition to the above revisions, the particular, the example explaining that Community Development Entity Agencies had proposed to add examples an institution may use readily available promotes economic development. The of types of activities that would meet data for the average wage for workers in Agencies proposed a revision to the the purpose test of promoting economic a particular occupation or industry Q&A to add the following presumption: development. The Agencies are could be useful when determining For loans to or investments in a adopting these examples largely as whether an activity promotes economic Community Development Financial proposed, but with some clarifications development. Institution (CDFI) that finances small and revisions to address commenters’ The Agencies specifically asked businesses or small farms. As discussed concerns, as discussed more fully whether the proposed examples below, the Agencies are adopting this below. Accordingly, the Agencies are demonstrating that an activity promotes proposed amendment to Q&A adopting this final Q&A with reference economic development for CRA § ll.12(g)(3)–1 regarding CDFIs. to activities that are considered to purposes were appropriate, and whether The Agencies also proposed to revise promote economic development if they there are other examples the Agencies the existing Q&A support permanent job creation, should include. Most commenters § ll.12(g)(3)–1 by removing the retention, and/or improvement: generally agreed the proposed examples reference to persons who are • For low- or moderate-income were appropriate. Several community ‘‘currently’’ low- or moderate-income in persons; organization commenters, as well as a order to clarify that banks can focus on • in low- or moderate-income state bank supervisory agency community development activities that geographies; commenter, suggested the Q&A should extend beyond support for low-wage • in areas targeted for redevelopment also include a reference to the ‘‘quality jobs. The Agencies specifically by Federal, state, local, or tribal of jobs’’ created, retained, or improved. requested input on whether the governments; Industry commenters, however, proposed revision would help to clarify • by financing intermediaries that opposed a ‘‘quality of jobs standard,’’ what is meant by job creation, retention, lend to, invest in, or provide technical expressing concerns related to increased or improvement for low- or moderate- assistance to start-ups or recently subjectivity by examiners and the income individuals. Commenters formed small businesses or small farms; Agencies and documentation burden on generally agreed with removing the or institutions, small businesses or small reference to persons who are • through technical assistance or farms, and examiners. The Agencies ‘‘currently’’ low- or moderate-income. supportive services for small businesses recognize that the term ‘‘quality’’ is However, most commenters indicated or farms, such as shared space, subjective, not easily defined, and that the proposal did not sufficiently technology, or administrative assistance. heavily influenced by local economic clarify what is meant by job creation, The final Q&A also recognizes that conditions, needs, and opportunities. retention, or improvement for low- or Federal, state, local, or tribal economic The amount of time, resources, and moderate-income persons beyond the development initiatives that include expertise needed to fairly evaluate the creation of low-wage jobs. Industry provisions for creating or improving quality of jobs created, retained, and/or commenters reiterated concerns that the access by low- or moderate-income improved for low- or moderate-income primary method to demonstrate that persons to jobs, or job training or individuals could be overly burdensome
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for examiners, financial institutions, for example, for large institutions, under Commenters overwhelmingly and small businesses or small farms. the retail lending evaluation criteria. supported adding CDFIs that finance However, the Agencies note that The Agencies also proposed to add small businesses or small farms to the examiners are not precluded from activities that support permanent job list of entities for which loans or considering qualitative factors relative creation, retention, and/or improvement investments are presumed to promote to a particular financial institution’s ‘‘[t]hrough workforce development and/ economic development; even so, some performance context, including, at the or job or career training programs that questioned limiting the presumption to institution’s option, any information target unemployed or low- or moderate- CDFIs that finance small businesses or provided on the quality of jobs created, income persons’’ to the list of activities small farms. The Agencies are adopting retained, or improved through any of that are considered to promote this revision as proposed. In order for a the types of activities listed in the economic development under the CDFI to promote economic development Q&A’s description of the purpose test as purpose test. Two government agency by financing small businesses and small promoting economic development. commenters expressed concerns that farms, it follows that any CDFI these activities, in and of themselves, presumed to promote economic The Agencies proposed that may not involve financing small development would need to finance permanent job creation, retention, and/ businesses or small farms and, therefore, small businesses or small farms. or improvement is supported ‘‘through would not meet the size test. To address Additionally, the Agencies are further the creation or development of small these concerns, the final Q&A does not revising the statement granting businesses or farms’’ and, therefore, incorporate this example in the list of presumptions for activities related to the such activity would be considered to those types of activities that promote specified entities to include services promote economic development and economic development under the provided to these entities, as well loans meet the ‘‘purpose test.’’ The Agencies purpose test. However, the Agencies are and investments. proposed this example in an effort to amending existing Q&As § ll.12(g)–1 Several commenters representing the recognize the impact small businesses and § ll.12(t)–4 to clarify that Historic Tax Credit (HTC) industry have on job creation in general, and to activities related to workforce suggested changes to the proposed Q&A address industry concerns that activities development or job training programs that would expand and clarify the in support of intermediary lenders or for low- or moderate-income or circumstances under which CRA other service providers, such as unemployed persons are considered consideration would be available for business incubators that lend to start-up qualified community development loans and investments related to businesses and help businesses become activities. projects involving HTCs. These bankable and sustainable, are often not The last example of a type of activity commenters suggested the Agencies considered under the purpose test. that would be considered to promote amend Q&A § ll.12(g)(3)–1 to create a Industry commenters have previously economic development that the presumption that activities related to indicated that such activities are not Agencies proposed referred to ‘‘Federal, HTC projects qualify for CRA considered because it is not clear under state, local, or tribal economic consideration as promoting economic the purpose test that these activities development initiatives that include development by financing small help promote economic development provisions for creating or improving businesses and small farms. Because not since any job creation, retention, or access by low- or moderate-income all HTC projects would meet the improvement would occur in the persons, to jobs, affordable housing, requirements to qualify for CRA future—after the businesses are financial services, or community consideration under 12 CFR organized or more established. services.’’ Industry and community ll.12(g)(3), the Agencies believe it However, there were concerns that the organization commenters suggested would be inappropriate to grant such a proposed guidance stating that amending or eliminating this proposed presumption. Nonetheless, in instances permanent job creation, retention, and/ activity altogether because it blurs the in which loans to, or investments in, or improvement ‘‘through the creation line between activities that support projects that receive HTCs do meet the or development of small business or economic development and those that regulatory definition of community farms’’ may be overly broad and could support other types of community development, including the geographic result in diffuse potential benefit to low- development and could create restrictions, the Agencies concur that or moderate-income persons or confusion. Although the Agencies’ CRA consideration should be provided. geographies. The Agencies are adopting original intention was to recognize all For example, a loan to, or investment in, this example with revisions to clarify Federal, state, local, or tribal economic an HTC project that does, in fact, relate that examiners will consider activities development initiatives, the Agencies to a facility that will house small that support permanent job creation, agree with these commenters and have businesses that support permanent job retention, and/or improvement by eliminated references to affordable creation, retention, or improvement for financing intermediaries that lend to, housing, financial services, and low- or moderate-income individuals, in invest in, or provide technical community services, which would low- or moderate-income areas, or in assistance to start-up or recently formed receive consideration under other areas targeted for redevelopment by small businesses or small farms. This prongs of the definition of ‘‘community Federal, state, local, or tribal example applies to loans to, investments development.’’ However, the Agencies governments may receive CRA in, or services to intermediaries that, in have otherwise retained the example in consideration as promoting economic turn, lend to, invest in, or provide the final Q&A being adopted, and have development. Further, a loan to or technical assistance to small businesses added a reference to governmental investment in an HTC project that will or small farms, and not to activities economic development initiatives that provide affordable housing or provided directly by an institution to include job training or workforce community services for low- or small businesses or small farms. A loan development programs, because those moderate-income individuals would to a small business or small farm would initiatives are closely related to job meet the definition of community be considered under the lending test creation, retention, and/or development as affordable housing or a applicable to a particular institution— improvement. community service targeted to low- or
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moderate-income individuals, Agencies long ago recognized that many or rehabilitated communications respectively. Similarly, loans to or small businesses, particularly start-up infrastructure as an example of an investments in HTC projects may also companies, are not immediately activity that would be considered to meet the definition of community prepared for, or qualified to engage in, revitalize or stabilize a nonmetropolitan development when the project traditional bank financing and, middle-income geography. These revitalizes or stabilizes a low- or therefore, included providing technical commenters, primarily representing moderate-income geography, designated assistance to small businesses and small community organizations, generally disaster area, or a designated distressed farms as a community development expressed the view that CRA or underserved nonmetropolitan activity. However, the Agencies consideration should be used as a middle-income geography. Greater understand that reasoning may not be means of encouraging financial weight will be given to those HTC- clear to examiners or financial institutions to find more direct ways to related activities that are most institutions. To address this issue, the meet the needs of low- or moderate- responsive to community credit needs, Agencies have amended the description income individuals and geographies. including the needs of low- or of the ‘‘size test’’ in the final Q&A to One individual commenter that opposed moderate-income individuals or explain that the term ‘‘financing’’ in this the addition of the example expressed geographies. See Q&As § ll.12(g)–1, context is considered broadly and concern that ‘‘regulatory creep’’ was § ll.12(g)(2)–1, § ll.12(g)(4)–2, includes technical assistance that moving the focus of the CRA away from § ll.12(g)(4)(i)–1, and readies a business that meets the size its original mission of helping to meet § ll.12(g)(4)(ii)–2 through–4. eligibility standards to obtain financing. community credit needs. In response to the Agencies’ request The Agencies intend this explanation to In contrast, most industry for input on the types of information ensure that technical assistance that commenters, as well as a few examiners should review when readies a small business or small farm community organization commenters, determining the performance context of to obtain financing is an activity that supported the addition of the new an institution, some community promotes economic development and, example addressing communications organizations suggested consulting local thus, would receive consideration as a infrastructure. These commenters stated studies and Federal Reserve Bank credit community development activity. that such an example would provide surveys; talking with CDFIs, local further clarity regarding what municipalities, and community ii. Revitalize or Stabilize Underserved constitutes an activity that could organizations that work directly with Nonmetropolitan Middle-Income revitalize or stabilize underserved small businesses; reviewing municipal Geographies nonmetropolitan middle-income needs assessments; and evaluating The definition of ‘‘community geographies. Many commenters who business and local demographic data. development’’ includes ‘‘activities that supported the addition of the new One industry commenter suggested revitalize or stabilize . . . underserved example noted the importance of examiners could review financial nonmetropolitan middle-income communications infrastructure, and in institution Consolidated Reports of geographies . . . .’’ See 12 CFR particular broadband access, to the Condition and Income (Call Reports) ll.12(g)(4)(iii). The CRA regulations economic viability of underserved and academic or governmental further provide that activities revitalize nonmetropolitan middle-income economic development reports or or stabilize underserved geographies’ residents and businesses in adopted plans. Another industry nonmetropolitan middle-income the current marketplace. Further, many commenter suggested that existing geographies if they help to meet of these commenters noted that the Q&As explain that an institution may essential community needs, including addition of the new example also may provide examiners with any relevant the needs of low- or moderate-income help to improve access to alternative information and, therefore, provide individuals. See 12 CFR systems of delivering retail banking sufficient guidance without overlaying ll.12(g)(4)(iii)(B). Existing Q&A services, which require reliable access prescriptive changes that could be § ll.12(g)(4)(iii)–4 provided further to broadband. counter-productive to an institution’s guidance by listing examples of The Agencies are adopting the new efforts to balance innovativeness and activities that would be considered to example describing a new or responsiveness with its unique business help to revitalize or stabilize rehabilitated communications strategy. Also regarding performance underserved nonmetropolitan middle- infrastructure because they continue to context, community organization income geographies. The Agencies believe that, consistent with the CRA commenters called for examiners to proposed to revise this guidance by regulatory definition of ‘‘community conduct ‘‘robust’’ analyses of local adding a new example describing an development,’’ communications needs, including localized data on activity related to a new or rehabilitated infrastructure is an essential community employment needs and opportunities communications infrastructure in service. Specifically, the definition of for low- or moderate-income recognition that the availability of ‘‘community development’’ provides individuals. The Agencies will consider reliable communications infrastructure, that activities that help meet ‘‘essential commenters’ suggestions going forward. such as broadband Internet service, is community needs’’ revitalize and Finally, one community organization important in helping to revitalize or stabilize underserved nonmetropolitan commenter noted that activities that stabilize underserved nonmetropolitan middle-income geographies. Further, support technical assistance may not middle-income geographies. existing Q&A § ll.12(g)(4)(iii)–4 involve ‘‘financing’’ small businesses or The Agencies received 66 comments clarifies that ‘‘financing for the small farms and, therefore, may not be addressing the proposed addition of the construction, expansion, improvement, consistent with the size test. Providing new example involving maintenance, or operation of essential technical assistance on financial matters communications infrastructure. infrastructure’’ may qualify for to small businesses is currently cited as Commenters’ views on whether the new revitalization or stabilization an example of a community example should be added to Q&A consideration. As noted above, in the development service in Q&A § ll.12(g)(4)(iii)–4 were mixed. Agencies’ view, reliable § ll.12(i)–3 and involves the A number of commenters expressed communications infrastructure is provision of financial services. The concern regarding the addition of a new increasingly essential to the economic
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viability of all residents of underserved included in Q&A § ll.12(g)(4)(iii)–4 is investing in renewable energy facilities nonmetropolitan middle-income not exhaustive. qualifies for CRA consideration under, geographies, including low- and In response to these comments, the for example, 12 CFR ll.12(g)(4)(iii), or moderate-income individuals. Agencies are adopting a new Q&A any of the other provisions within the Several industry and community § ll.12(g)–4. This new Q&A explains definition of community development, organization commenters, as well as a that examples included throughout the then the financial institution would commenter representing a state banking Questions and Answers are not receive consideration for the activity. supervisor, sought clarification exhaustive; rather, the Agencies provide Therefore, the Agencies are not regarding the extent to which the new examples to illustrate the types of expressly adding a reference to or rehabilitated communications activities that may qualify for renewable energy facilities to the list of infrastructure must benefit low- or consideration under a particular examples in Q&A moderate-income individuals or provision of the regulations. § ll.12(g)(4)(iii)–4. geographies. The Agencies considered Nonetheless, the Agencies emphasize Other commenters suggested that whether to provide additional that the examples that are expressly loans enabling flood control measures clarification addressing these comments provided are not the only activities that should be considered as an example of and determined that additional might receive CRA consideration. In a community development loan. guidance was not necessary. First, addition, new Q&A § ll.12(g)–4 Although these comments were offered existing Q&A § ll.12(g)(4)(iii)–4 states explains that financial institutions may as a suggestion for an example of a that, to receive CRA consideration on receive consideration for a community community development loan in the basis of revitalizing or stabilizing an development activity, such as a connection with Q&A § ll.12(h)–1, underserved nonmetropolitan middle- qualified investment, if it serves a the Agencies believe that the income geography, a project must meet similar community development commenters’ suggestion of a new or essential community needs, including purpose as an activity described in an rehabilitated flood control measure is the needs of low- or moderate-income example related to a different type of another example of essential individuals. Although the geographies community development activity, such infrastructure that could qualify as an (a term defined at 12 CFR ll.12(k) as as a community development loan. If a activity that revitalizes or stabilizes an census tracts) addressed by Q&A financial institution can demonstrate underserved nonmetropolitan middle- § ll.12(g)(4)(iii)–4 are designated as that an activity it has undertaken has a income geography. As such, the middle-income, there typically are low- primary purpose of community Agencies have added the following new and moderate-income individuals and development and meets the relevant example in Q&A § ll.12(g)(4)(iii)–4: neighborhoods interspersed throughout geographic requirements, that activity ‘‘a new or rehabilitated flood control these nonmetropolitan geographies. should receive CRA consideration. The Agencies considered whether the measure, such as a levee or storm drain, Second, the CRA regulations 10 and example pertaining to a new or that serves the community, including Q&A § ll.12(g)(4)(iii)–4 do not require rehabilitated communications low- and moderate-income residents.’’ that financial institutions demonstrate infrastructure should be added to any that projects primarily benefit the low- iii. Community Development Loans other Q&As, such as Q&A and moderate-income individuals or § ll.12(g)(4)(iii)–3, but declined to The Agencies’ CRA regulations define neighborhoods in these geographies in add the example to any other Q&As. The ‘‘community development loan’’ to order to receive CRA consideration for Agencies believe that new Q&A mean a loan that has community revitalizing or stabilizing the § ll.12(g)–4, described above, should development as its primary purpose. ll underserved nonmetropolitan middle- provide guidance as to whether a new See 12 CFR .12(h). Existing Q&A ll income geographies. The Agencies or rehabilitated communications § .12(h)–1 provides examples of believe that the current explanation in infrastructure might receive CRA community development loans. The ll Q&A § .12(g)(4)(iii)–4 is clear consideration in other contexts. The Agencies proposed to add a new regarding the benefits to an underserved Agencies do not believe it is necessary example of loans to finance certain nonmetropolitan middle-income to add the same example to any other renewable energy or energy-efficient geography and the low- and moderate- Q&As. technologies. The proposed example income individuals within that Some industry and community was intended to clarify that such loans geography. organization commenters, as well as the may be considered as community Two industry commenters and one U.S. Environmental Protection Agency development loans when the renewable community organization commenter (EPA), requested that the Agencies add energy or energy-efficiency requested that the proposed new additional examples of activities that improvements help reduce operational example not be limited to Q&A qualify for consideration as activities costs and maintain the affordability of § ll.12(g)(4)(iii)–4, asserting that that revitalize or stabilize underserved single-family or multifamily housing or communications infrastructure should nonmetropolitan middle-income community facilities that serve low- and also be considered to be an activity that geographies. For example, the EPA moderate-income individuals. revitalizes or stabilizes distressed suggested expanding Q&A The Agencies received 43 distinct nonmetropolitan middle-income, and § ll.12(g)(4)(iii)–4 to address comments and 917 form letters low- or moderate-income, geographies. renewable energy facilities, which it addressing the proposed example in One industry commenter stated that it posited could be considered ‘‘public Q&A § ll.12(h)–1. Industry and should be made clear that investments services.’’ (As discussed below, loans to community organization commenters, as in new or rehabilitated communications finance certain renewable energy well as commenters representing infrastructure, and not just loans related facilities has been added to the environmental organizations, generally to such activities, would receive CRA examples of community development supported adding the proposed example consideration. In addition, a few loans in Q&A § ll.12(h)–1.) Consistent to the Q&A. However, a few community commenters requested generally that the with the explanation in new Q&A organization commenters expressed Agencies clarify that the list of examples § ll.12(g)–4, if a financial institution differing opinions regarding how the were to submit information Agencies proposed to describe that an 10 See 12 CFR ll.12(g)(4)(iii). demonstrating that financing or indirect benefit from renewable energy
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improvements would be considered. A facility that serves low- or moderate- improvements in schools. The Agencies few community organization income individuals. believe that inclusion of this language in commenters believed that the benefit to The EPA suggested adding Q&A § ll.12(h)–1 is unnecessary. A low- or moderate-income households or ‘‘revitalizing a contaminated property school that primarily serves low- or geographies should be more clear and by installing renewable energy’’ to the moderate- income students could be direct. These commenters asserted that list of examples of community considered as a community facility, and loans financing renewable energy or development loans in the revision of a loan for energy efficiency energy-efficiency initiatives should be Q&A § ll.12(h)–1. A community improvements at that school would required to result in a demonstrable development loan must have a primary qualify as a community development reduction in the operating or purpose of community development loan, consistent with the example in the maintenance cost for affordable housing (see Q&A § ll.12(h)–8). The Agencies revised Q&A. or community facilities serving low- or do not believe it is clear that revitalizing A number of community organization moderate-income individuals in order to a contaminated property by installing commenters suggested broadening the renewable energy facilities would language in Q&A § ll.12(h)–1 to qualify for CRA consideration as always have a primary purpose of include water conservation community development loans. In community development, as defined in improvements. The Agencies agree that response to these comments, the 12 CFR ll.12(g). Therefore, the water conservation improvements can Agencies agree that there should be a Agencies have not added this particular promote sustainable affordable housing discernible benefit to the affordable example. or community facilities serving low- or housing or community facilities serving Several renewable energy-related moderate-income individuals by low- or moderate-income individuals. industry commenters discussed the job lowering operating costs and, Thus, the Agencies have revised the creation and job training aspects of accordingly, have modified the example example in Q&A § ll.12(h)–1 to installing renewable energy to include water conservation. In remove the reference to ‘‘indirect improvements and requested greater addition, activities related to water benefit.’’ However, to provide further CRA consideration of the impact of jobs conservation improvements may also clarification, the Agencies have added during the construction phase. The qualify as having a different community an example illustrating how renewable agencies note that Q&A § ll.12(h)–5, development purpose if an institution energy facilities could benefit low- or in offering guidance on community were to maintain information moderate-income individuals by development activities that revitalize or demonstrating that the activity meets reducing a tenant’s utility cost or the stabilize a low- or moderate-income the applicable community development cost of providing utilities to common geography, states that some activities definition as explained in new Q&A areas in an affordable housing provide only indirect or short-term § ll.12(g)–4. development. benefits to low- or moderate-income Although some commenters also In addition, a number of commenters individuals and, as such, do not receive suggested adding flood control representing the renewable energy CRA consideration. Construction jobs improvements to the example in Q&A industry asked the Agencies to consider are used as an illustration of this type § ll.12(h)–1, the Agencies concluded renewable energy facilities that are not of short-term benefit. Consistent with that financing for flood control attached directly on the affordable this guidance, the Agencies do not improvements may more appropriately housing or community services facility, believe that additional consideration be considered as essential infrastructure should be given to short-term job addressing the need for revitalization explaining that this approach could be creation related to the installation of and stabilization of underserved more efficient, technologically simpler, renewable energy improvements nonmetropolitan middle-income or less costly if a particular building site benefitting affordable housing or a geographies. See Q&A is not oriented to optimize renewable community facility that serves low- or § ll.12(g)(4)(iii)–4. energy generation. In response to these moderate-income individuals and are The final paragraph of existing Q&A comments, the Agencies have revised not amending the Q&A as suggested by § ll.12(h)–1 stated that the the example in the final Q&A to clarify the commenters. rehabilitation and construction of that a renewable energy project may be A few renewable energy-related affordable housing or community located on-site or off-site. This industry commenters suggested that facilities may include the abatement or clarification would apply, for example, CRA consideration should be given for remediation of environmental hazards, to a community-scale or micro-grid loans to low- or moderate-income and provided lead-based paint as an renewable energy facility or solar panels homeowners to install renewable energy example. The Agencies received many placed on carports instead of being facilities or energy-efficient comments from community and physically mounted on the main improvements. A loan to a homeowner environmental organizations suggesting building, so long as the benefit from the for these purposes would be considered the inclusion of more explicit energy generated is provided to an as a consumer loan or home mortgage enumeration of several additional affordable housing project or a loan. Under the existing regulation and examples of environmental hazards and community facility that has a guidance, these loans may be have added to the example ‘‘asbestos, community development purpose. To considered in an institution’s CRA mold, or radon’’ as other examples of demonstrate that activities related to a evaluation under the lending test environmental hazards that may be renewable energy facility or project have relevant to the particular institution, so abated or remediated as part of a a primary purpose of community the Agencies have not made any rehabilitation or construction project. development, an institution may additional revisions to the Questions One renewable energy-related provide a copy of the contractual and Answers in response to this industry commenter noted that the agreement, such as a lease, power comment. discussion in the preamble of the purchase agreement, or energy service One environmental organization September 2014 Federal Register notice contract, that allocates energy or suggested broadening the proposed addressing the proposed revision to otherwise reduces energy cost to benefit language in Q&A § ll.12(h)–1 to Q&A § ll.12(h)–1 may affect certain affordable housing or a community expressly cover energy efficiency energy financing programs. The
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Agencies reiterate that all loans acknowledges these programs as a type by the Agencies intended to address this considered in an institution’s CRA of lending activity that is likely to be issue. The Agencies have revised the evaluation, including loans that finance responsive in helping to meet the credit introductory paragraph of the final Q&A renewable energy or energy-efficient needs of many communities. See Q&A to make clearer that innovative or technologies, must be consistent with § ll.22(a)–1. However, the Agencies flexible lending practices are not the safe and sound operation of the believed that outreach initiatives offered required to obtain a specific CRA rating. institution and should not include in conjunction with small dollar loan In addition, the final Q&A is revised to features that could compromise any programs improve the success of those cross-reference Q&A § ll.28–1, which lender’s existing lien position. affiliated lending programs in meeting explains how innovativeness is The Agencies want to make clear that the credit needs of low- and moderate- considered in the rating process. the addition of this example does not income individuals and communities Current Q&A § ll.28–1 explicitly expand the definition of community and, therefore, merit qualitative states, among other things, that the lack development, but rather clarifies that consideration as an example of an of innovative lending practices will not consideration will be given for loans innovative or flexible lending practice. result in a ‘‘Needs to Improve’’ CRA financing renewable energy facilities or The second example proposed by the rating. Rather, the guidance notes that energy-efficient improvements in Agencies described mortgage or the use of innovative lending practices affordable housing or community consumer lending programs that utilize may augment the consideration given to facilities that otherwise meet the alternative credit histories in a manner an institution’s performance under the existing definition of community that would benefit low- or moderate- quantitative criteria, resulting in a development. income individuals. The Agencies higher performance rating. believed that considering alternative One industry commenter addressed B. Lending Test—Innovative or Flexible credit histories to supplement the Agencies’ proposed language stating Lending Practices conventional trade line information that examiners will consider whether, The CRA regulations provide that a with additional information about the and the extent to which, innovative or financial institution’s lending borrower, such as rent and utility flexible practices augment the success performance is evaluated by, among payments, could provide some and effectiveness of an institution’s other things, an institution’s ‘‘use of additional creditworthy low- or lending program. This commenter innovative or flexible lending practices moderate-income individuals an questioned whether the proposed in a safe and sound manner to address opportunity to gain access to credit, guidance would be sufficient to help the credit needs of low- or moderate- consistent with safe and sound examiners or bankers understand and income individuals or geographies.’’ See underwriting practices. The Agencies identify innovative or flexible lending 12 CFR ll.22(b). Existing guidance also solicited comment on whether the activities since examiner discretion contained in Q&A § ll.22(b)(5)–1 proposed guidance was sufficient to determines what is considered provides two examples that illustrate encourage institutions to design more ‘‘innovative’’ or ‘‘flexible.’’ The the range of practices that examiners innovative and flexible lending Agencies recognize that the terms may consider when evaluating the programs that are responsive to ‘‘innovative’’ and ‘‘flexible’’ are innovativeness or flexibility of an community needs; whether the benefits qualitative in nature and, thus, institution’s lending practices. The of using alternative credit histories examiner judgment is needed to assess Agencies believed that the current outweighed any concerns; and if this the unique characteristics and guidance would benefit from additional additional guidance would better enable differences in an institution’s lending examples of innovative or flexible examiners and institutions to identify programs. However, the Agencies lending practices and therefore, those cases in which alternative credit believe additional guidance concerning proposed to expand the list of examples. histories benefit low- or moderate- what constitutes an innovative activity First, the Agencies proposed to revise income individuals. would be helpful to the review process Q&A § ll.22(b)(5)–1 to emphasize that The Agencies received 87 comments undertaken by examiners. Bankers and an innovative or flexible lending addressing the proposed revisions and examiners may also find additional practice is not required to obtain a the three related questions the Agencies guidance in new Q&A § ll.21(a)–4, specific rating, but rather is a qualitative posed for comment. Because discussed in further detail below, which consideration that, when present, can commenters’ more general observations explains, among other things, that enhance a financial institution’s CRA also addressed the three questions, their ‘‘innovative activities are especially performance. Second, the Agencies responses to the questions are integrated meaningful when they emphasize proposed to explain that examiners will into the broader discussion of the serving, for example, low- or moderate- consider whether, and to what extent, comments received by the Agencies. income consumers or distressed or the innovative or flexible practices Most commenters were supportive of underserved nonmetropolitan middle- augment the success and effectiveness the Agencies’ intent to clarify how income geographies in new or more of the institution’s lending program. examiners evaluate an institution’s effective ways.’’ Although examiner Third, the Agencies proposed two new innovative or flexible lending practices. judgment and discretion remain in examples of innovative or flexible However, several commenters determining what lending practices are lending practices. The first example representing both the banking industry deemed innovative or flexible, the described small dollar loan programs as and community organizations expressed Agencies believe the additional an innovative or flexible practice when some concerns about the revisions, as guidance in Q&A § ll.21(a)–4 such loans are made in a safe and sound discussed more fully below. provides further clarification on when manner with reasonable terms, and are A few industry commenters asked the an activity should be considered offered in conjunction with outreach Agencies to further clarify that innovative or flexible. initiatives that include financial literacy innovative activities, such as small Most commenters addressing or a savings component. A small dollar dollar lending programs and alternative proposed Q&A § ll.22(b)(5)–1 loan program currently receives credit histories, are not required to commented on the two examples consideration under the lending test obtain a specific CRA rating, and had proposed by the Agencies. Concerning and, therefore, the guidance already concerns despite the revision proposed the small dollar loan example, most
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community organization commenters value, but could have a institution’s traditional underwriting recognized that such programs could be disproportionately negative impact on standards. Further, when such a a feasible alternative to higher-cost low- or moderate-income individuals program is used to demonstrate that loans offered by payday lenders. and people of color. These commenters consumers have a timely and consistent Industry commenters were also suggested that the Agencies clarify the record of paying their obligations, the supportive of small dollar lending types of data sources that should be program may be considered an programs. For example, one industry used in alternative credit history reports innovative or flexible practice that commenter stated that small dollar that could be considered innovative, but augments the success and effectiveness loans are a path for a bank’s clients with that would not have a negative impact of the lending program. The Agencies thin credit files or a lack of credit on low- or moderate-income note that, similar to the small dollar history to build or establish a credit individuals. loan program example and the other score. Nevertheless, some community Industry commenters were also examples in this Q&A, the use of organization commenters expressed supportive of the proposed example alternative credit histories as an concern that the proposed example on concerning alternative credit histories. innovative or flexible lending practice is small dollar loans did not make A few industry commenters not required for the financial institution reference to any consumer protection acknowledged that the use of alternative to obtain a specific CRA rating. See Q&A standards. credit histories could be effective in § ll.28–1. In particular, one state agency expanding access to credit to low- or Finally, the Agencies revised the expressed concern that the small dollar moderate-income individuals. However, introductory paragraph of this Q&A to loan example did not sufficiently these industry commenters believed that make clear that, although many emphasize consumer protection and the access to credit should be balanced financial institutions have used safety and soundness aspects of against safety and soundness innovative or flexible lending practices, individual small dollar loans. This considerations. These industry such as a small dollar loan program or commenter suggested that the Agencies commenters urged the Agencies to work consideration of alternative credit consider adding the phrase ‘‘based on a closely with each other to provide a histories, to customize loans to their borrower’s ability to repay’’ to the small consistent message regarding the customers’ specific needs in a safe and dollar loan example because it would activities that could be innovative and sound manner and consistent with emphasize that small dollar loans made flexible while ensuring delivery in a statutes, regulations, and guidance, such in a safe and sound manner are safe and sound manner. practices are not required to obtain a evaluated with respect to individual The Agencies are finalizing the specific CRA rating. Further, the CRA loans and not the entire portfolio. example addressing consideration of regulations provide that a financial Similarly, several community alternative credit histories largely as institution is not required to make loans organization commenters asked that the proposed with clarifying revisions based or investments or to provide services Agencies give CRA consideration for on comments received. The Agencies that are inconsistent with safe and small dollar loan programs only if the agree with commenters that certain data sound operations. Financial institutions loans are safe and sound alternatives to sources provide little or no predictive are permitted and encouraged to high-cost predatory programs. value. Hence, the Agencies intend to develop and apply flexible underwriting In response to these comments, the consider an institution’s use of standards for loans that benefit low- or Agencies are adopting the small dollar alternative credit histories that are moderate-income geographies or loan program example largely as consistent with safe and sound banking individuals only if consistent with safe proposed with a revision to ensure practices and that would benefit and sound operations. See 12 CFR ll consistency with Q&A § ll.22(a)–1. otherwise creditworthy low- or .21(d). Finally, one industry commenter moderate-income individuals who requested that the Agencies clarify the would otherwise be denied credit. C. Service Test term ‘‘reasonable terms’’ in the context Individuals that may benefit from such i. Availability and Effectiveness of of small dollar lending programs. This programs are those who may not qualify Retail Banking Services commenter expressed concern that for credit based on the use of ‘‘reasonable terms’’ was undefined and, conventional credit bureau reports The CRA regulations provide that the thus, would add confusion as to what because they have little, or no, Agencies evaluate the availability and would receive CRA consideration. The reportable credit history with the effectiveness of a financial institution’s Agencies note that whether a lending national credit bureaus (hence a credit systems for delivering retail banking program has ‘‘reasonable terms’’ would denial due to a low, or no, credit score services under the service test pursuant depend on the facts and circumstances with the national credit bureaus), but to four criteria: (1) The current and, therefore, defining the term would have a timely and consistent record of distribution of the institution’s branches not be practicable. paying obligations (such as rent and among low-, moderate-, middle-, and Most community organization utility bills). The Agencies believe that upper-income geographies; (2) the commenters were supportive of the the use of alternative credit histories to institution’s record of opening and proposed new example addressing supplement (not substitute for) the closing branches, particularly those consideration of alternative credit institution’s traditional underwriting located in low- or moderate-income histories as an innovative or flexible programs, may open opportunities to geographies or primarily serving low- or lending practice. Several community some creditworthy low- or moderate- moderate-income individuals; (3) the organization commenters, however, income individuals to gain access to availability and effectiveness of expressed concern over the risk of using credit. Accordingly, the Agencies have alternative systems for delivering retail certain alternative data sources, such as modified the example to clarify that banking services in low- and moderate- social media, checking account history, alternative credit histories should be income geographies and to low- and voter registration records, and criminal used to evaluate low- or moderate- moderate-income individuals; and (4) convictions, to establish credit history. income individuals who lack sufficient the range of services provided in low-, According to these commenters, such conventional credit histories and who moderate-, middle-, and upper-income data sources provide no predictive would be denied credit based on the geographies and the degree to which the
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services are tailored to meet the needs important in providing financial Commenters generally believed the of those geographies. services to low- and moderate-income proposed factors were reasonable and The Agencies proposed to revise geographies. However, the Agencies are sufficiently flexible. Community current Q&A § ll.24(d)–1, which making a minor revision to the Q&A to organization commenters emphasized addresses how examiners should remove references to automated teller the importance of determining whether evaluate the availability and machines (‘‘ATMs’’) as the only alternative services and products were effectiveness of an institution’s systems example of alternative delivery systems not just offered, but adopted and used for delivering retail banking services. to acknowledge that many other consistently by consumers. These Specifically, the Agencies proposed to alternative delivery channels are commenters suggested that the cost of delete the statements that ‘‘performance utilized by financial institutions. The products is most relevant in the standards place primary emphasis on Agencies note that other Q&As being consideration of whether an alternative full-service branches’’ and that finalized in this document provide delivery system is available to, and used alternative delivery systems are additional guidance on how examiners by, low- and moderate-income considered ‘‘only to the extent’’ that will evaluate criteria under the retail individuals. they are effective alternatives in service test to ensure that appropriate Some community organization providing needed services to low- or consideration is given to branches, commenters suggested that the Agencies moderate-income geographies and alternative delivery systems, and refrain from placing too much emphasis individuals. The proposal was intended financial services tailored to meet the on alternative delivery systems until to encourage broader availability of needs of low- and moderate-income usage data can be accessed and used by alternative delivery systems to low- or individuals or geographies. See Q&As the public to independently monitor the moderate-income geographies and § ll.24(d)(3)–1 and § ll.24(d)(4)–1. industry’s performance. Furthermore, individuals without diminishing the these commenters suggested that the value full-service branches offer to ii. Alternative Systems for Delivering Agencies clarify that financial communities. Retail Banking Services institutions will not receive CRA The Agencies received 41 comments The Agencies proposed to revise Q&A consideration for serving low- or on proposed revisions to Q&A § ll.24(d)(3)–1, which addresses how moderate-income individuals or areas § ll.24(d)–1. Nearly all of the industry examiners evaluate the availability and outside of their assessment areas using commenters supported the revision, effectiveness of alternative delivery online or mobile technology. including commenters that stressed the systems in the context of the retail Conversely, industry commenters continued importance of branches to the service test. The proposed revisions focused on the difficulty of evaluating communities they serve. Some industry were responsive to suggestions that the the availability and effectiveness of commenters, however, voiced concern Agencies update the guidance to reflect services based on the income of the about how the Agencies would technological advances used to deliver recipient because such information is implement the revision and asked for retail banking services by: (1) Adding collected only in the context of a loan further clarification on how examiners examples of such technologically application. would weigh branches and alternative advanced systems, even though the The Agencies specifically sought delivery systems and utilize examples were not, and are not, comment on whether the factors performance context considerations in intended to limit consideration of new proposed were sufficiently flexible to be rating the different delivery systems’ methods as technology evolves; and (2) used by examiners as the financial performance under the service test. In providing additional guidance on how services marketplace evolves, and if contrast, almost all community examiners will evaluate the availability other factors should be included. organization commenters opposed the and effectiveness of alternative delivery Commenters that addressed this proposed revisions, asserting that systems. question were largely supportive. branches continue to be uniquely Proposed Q&A § ll.24(d)(3)–1 Industry commenters indicated that the important to low- and moderate-income identified additional factors that factors were sufficiently flexible, but neighborhoods and individuals, elderly examiners may consider when noted that additional guidance was customers, and local businesses. Many evaluating whether a financial needed regarding the use of proxies for of these community organization institution’s alternative delivery systems income and how the criteria would be commenters highlighted the importance are available and effective in delivering weighted. Community organization of face-to-face contact in order to retail banking services in low- and commenters were also generally overcome language barriers and moderate-income geographies and to supportive of the proposed factors but effectively provide essential financial low- and moderate-income individuals. offered suggestions on how to services, such as opening accounts, These proposed factors included: (1) implement them. applying for loans, and explaining terms Ease of access, whether physical or One industry commenter opposed the and conditions. These commenters virtual; (2) cost to consumers, as proposed factor that would evaluate the believed the proposed changes compared to other delivery systems; (3) comparative cost of alternative delivery regarding how examiners should weigh range of services delivered; (4) ease of systems to the consumer because it branches and alternative delivery use; (5) rate of adoption; and (6) would give examiners broad discretion systems would result in more branches reliability of the system. The proposed when evaluating the pricing of banking being closed. Moreover, these Q&A further explained that examiners services. Other industry commenters commenters stated that the proposed will consider any information an suggested that the Agencies provide revisions to Q&A § ll.24(d)–1 would institution maintains and provides to more clarity regarding how the factors not resolve the CRA regulations’ examiners to demonstrate that the would be weighted. Yet another outdated definition of assessment area. institution’s alternative delivery systems industry commenter suggested that the In consideration of the comments are available to, and used by, low- and Agencies clearly specify that the list of received, the Agencies are withdrawing moderate-income individuals, such as factors is not intended to be exhaustive the proposed revisions to Q&A data on customer usage or transactions. and requested that the guidance clearly § ll.24(d)–1 to avoid the unintended The Agencies received 41 comments state that there is no regulatory inference that branches are less on the proposed Q&A § ll.24(d)(3)–1. requirement to provide banking services
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at a reduced cost. Finally, another The Agencies did not include industry commenters stated that industry commenter suggested that additional explanation to the ‘‘ease of financial institutions do not collect consideration should be given to the access’’ factor, as suggested by some income information from customers and continuum of access channels that an commenters, but note that evaluation of most suggested that the income level of institution provides, rather than ‘‘ease of access’’ could include the census tract where the customer comparing services within delivery consideration of language access, resides is the best available proxy for channels. This commenter further stated disability accommodation, and the income. Another industry commenter that financial institutions providing a ability to use a system with alternative counseled against any effort to collect full range of access channels should forms of identification. Similarly, the income information when opening receive greater consideration than Agencies did not revise the final Q&A deposit accounts, asserting that opening mono-line or limited-channel to address how the various factors will a bank account needs to be as simple as institutions. be weighted since the availability and possible to increase access to banking Community organization commenters applicability of information regarding services. This commenter believed that focused on the importance of evaluating each factor will vary depending on the the more questions a financial the actual impact of financial services type of delivery system under institution asks, the fewer people would on low- and moderate-income consideration and the performance finish the process and, more communities. These commenters context of the institution. The factors importantly, that income information suggested evaluating the sustainability cited in the final Q&A are examples of collected in this way would quickly of accounts opened, the range of information that is relevant to the become stale and statistically invalid. services offered through alternative evaluation of whether alternative One industry commenter suggested delivery systems, and the degree to delivery systems are available and that some financial institutions may which they are tailored to meet the effective, and they are meant to be maintain information, such as internal needs of low- or moderate-income flexible. operations reports, industry rankings, individuals. In addition, some The Agencies did not revise the and customer surveys, that would be community organization commenters guidance to address the comment helpful in understanding their suggested that the Agencies provide suggesting that the proposed measures performance context, but, since the additional explanation on the ‘‘ease of of availability and effectiveness of types of information that institutions access’’ factor to include consideration alternative delivery systems should be maintain vary widely, such information of language access, disability made applicable to branches and third- would be difficult to use for anything accommodation, and ability to use a party service providers. The Agencies other than context. A community system with alternative forms of share the commenter’s view that organization commenter suggested that identification. financial institutions should provide examiners evaluate the frequency of One commenter, a public policy high-quality service delivery overall; transactions, adoption and attrition organization, supported the proposed however, the measures of availability rates, as well as any geographic and factors, but suggested that they be and effectiveness in Q&A § income data available. applied to determine the effectiveness of ll.24(d)(3)–1 were designed to Two commenters addressed the branches as well as alternative delivery evaluate alternative delivery systems. information available regarding the systems. This commenter stated that As provided in the Interagency CRA reliability of alternative delivery high-cost or inconvenient branches are Examination Procedures, examiners systems. The first, representing a no more beneficial than poorly utilized assess the quantity, quality, and community organization, suggested that alternative delivery platforms, and accessibility of the financial examiners evaluate the alternative asserted that the Agencies’ objective institution’s service delivery systems delivery systems’ ability to handle peak should be to encourage high-quality provided in low-, moderate-, middle-, transaction volumes, the frequency of service delivery through both branches and upper-income geographies. system crashes, the number of service and alternative channels. This Examiners also consider the degree to shut downs for system maintenance, commenter also stated that the use of which services are tailored to the and the information security of systems. intermediaries, such as community- convenience and needs of each The other comment, from a financial based organizations that provide face-to- geography (e.g., extended business institution, suggested that the Agencies face interaction with customers, should hours, including weekends, evenings, or provide specific guidance on, and be considered as an effective substitute by appointment, providing bilingual examples of, the types of information for branch activity. services in specific geographies, etc.). that might be relevant to the evaluation In general, the commenters agreed The second question on which the of a system’s reliability. that the factors proposed are reasonable Agencies requested comment asked The comment letters indicated that and sufficiently flexible. The Agencies about the types of information routinely the types of information collected and are finalizing the proposed factors in maintained by financial institutions that maintained by financial institutions that final Q&A § ll.24(d)(3)–1 largely as would be useful to demonstrate the would be relevant to an evaluation of proposed, but with two modifications. availability and effectiveness of its the availability and effectiveness of First, to address commenters’ concern alternative delivery systems to low- or alternative delivery systems vary that availability of alternative delivery moderate-income individuals. One widely. The Agencies, therefore, are systems alone does not demonstrate a industry commenter described the data retaining the proposed language stating system’s responsiveness to community that it has begun to collect and retain to that examiners will consider any needs, the Agencies have revised the comprehensively assess all delivery information that an institution factor regarding the rate of adoption to systems, including customer complaint maintains and provides to demonstrate read ‘‘the rate of adoption and use’’ metrics, cost of delivery (including the availability and effectiveness of its (emphasis added). Second, the Agencies third-party costs), new account/product alternative delivery systems to low- or clarified the language regarding the cost volume, account/product closure moderate-income individuals. to consumers as compared with the volume, current accounts/product Third, the Agencies asked what other bank’s other delivery systems, as volume, and Service Level Agreements sources of data and quantitative discussed more fully below. metrics (uptime/downtime). Other information examiners could use to
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evaluate the proposed factors and related to determining the relative cost alternative delivery systems to whether financial institutions have such of alternative delivery systems, suggest consumers as compared with other data readily available for examiners to that the distinction between delivery delivery systems, as well as the range of review. One industry trade association systems and financial products is not services delivered relative to other commenter suggested that market clear. For example, many commenters delivery systems, (i) offered by the studies be used to determine alternative focused on how the costs of financial institution, (ii) offered by institutions delivery systems’ usage because income products tailored to meet the needs of within the institution’s assessment data is not available. Another industry low- and moderate-income customers, area(s), or (iii) offered by the banking commenter suggested that the such as prepaid cards and low-cost industry generally. Two industry interagency examination procedures be checking accounts, should be evaluated, commenters stated that an evaluation of modified to require that examiners rather than addressing information that the cost to consumers compared to other gather cost data from advertisements, could be used to determine the relative delivery systems is best evaluated brochures, online product lists, and costs of delivery systems, such as usage within the specific context of each similar sources to compare service costs or access fees for online accounts and financial institution. One of these across banks and within broad mobile banking platforms. commenters suggested that it would be geographic areas. This commenter also In order to more clearly distinguish unreasonably burdensome to expect an suggested that examiners should gather between delivery systems and financial institution to survey and monitor costs information from the community products tailored to meet the needs of related to other institutions’ delivery regarding the cost of services locally in low- or moderate-income individuals, systems. One industry commenter the course of examinations. the Agencies have revised Q&A suggested that it would be preferable to A community organization § ll.12(i)–3, which lists examples of evaluate the cost to consumers within commenter noted the lack of useful data community development services, to each assessment area, recognizing that regarding the actual geographic location remove from that list any examples of examiners are required to reach a of a person or business holding deposits retail banking services that are tailored conclusion on a financial institution’s and suggested that the Summary of to meet the needs of low- or moderate- performance in each of its assessment Deposits 11 information collected by the income individuals. This revised Q&A areas. One community organization FDIC be improved to provide better data is discussed more fully below under commenter stated that the cost to regarding depositor location. Another III.A.i. However, these examples of consumers of a particular delivery community organization commenter retail services will continue to be given system should not be considered along suggested that examiners evaluate consideration under the service test as with other factors, such as the rate of punitive fees, prohibitive minimum provided pursuant to 12 CFR adoption and sustained use. Another balances, and narrow risk assessments ll.24(d)(4). community organization commenter associated with bank products. A third The Agencies have also added a new asserted that examiners should consider ll community organization commenter Q&A § .24(d)(4)–1 addressing how the total cost of products because fees suggested that examiners refer to online examiners evaluate whether retail are a primary factor preventing sources to provide cost comparisons of services are tailored to meet the needs households from obtaining bank products across providers. This of geographies of different income products and retaining banking commenter also suggested that levels. The Agencies are adopting Q&A relationships. ll examiners consider a comparison of § .24(d)(4)–1 in response to the After reviewing the comments many comments received regarding how costs relative to other banks in the received in response to this question, examiners evaluate alternative delivery assessment area and the industry the Agencies agree that it would be most systems. Many of these commenters overall. Still another community appropriate to compare the costs of a indicated that some confusion exists in commenter focused on how prepaid financial institution’s alternative distinguishing alternative delivery cards could be evaluated for delivery systems with its other delivery systems from financial products that are effectiveness, suggesting that examiners systems because of significant tailored to meet the needs of low- or evaluate whether the cardholder’s credit differences in size, capacity, and moderate-income geographies and business strategy among institutions. As score had improved as a measure of individuals. The Agencies believe that a result, the Agencies have revised the whether the card helped accountholders this new guidance makes clear that, in final Q&A to clarify that costs of save money, build credit, and improve addition to evaluating the range of alternative delivery systems will be financial literacy. This commenter also services provided in geographies of compared to the financial institution’s suggested that income could be different incomes, examiners will also other delivery systems. estimated from direct deposits of review any other information provided Lastly, the Agencies asked whether employment checks. by the institution to demonstrate that its the proposed revisions adequately The Agencies found these comments services are tailored to meet the needs address changes in the way financial helpful in thinking about the types of of its customers in the various institutions deliver products in the information that may be useful in geographies of its assessment area(s). context of assessment area(s) based on evaluating the availability and The final guidance further explains that the location of a financial institution’s effectiveness of alternative delivery this information may include data branches and deposit-taking ATMs. systems. Moreover, the Agencies noted regarding the costs and features of loan While most commenters noted that the that the comments, particularly those and deposit products, account usage proposed Q&A offered helpful guidance and retention, geographic location of on how examiners would evaluate the 11 The Summary of Deposits (SOD) is the annual survey of branch office deposits as of June 30 for accountholders, the availability of availability and effectiveness of all FDIC-insured institutions, including insured information in languages other than alternative delivery systems, they also U.S. branches of foreign banks. This survey has English, and any other relevant observed that the proposed guidance been conducted since 1934. Instructions, survey information maintained by the did not adequately address the trend in results, market share reports, contact information, and survey facsimiles are available through the institution. the financial services industry toward FDIC’s Summary of Deposits Web site at https:// Fourth, the Agencies asked whether non-branch delivery systems and its www2.fdic.gov/sod/. examiners should evaluate the cost of impact on financial institutions’
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performance within their branch-based by the institution that demonstrates In reviewing the comments, the assessment areas. Similarly, one community development services are Agencies noted that much of the industry commenter and one responsive to those needs in order to confusion surrounding the distinction community organization commenter address concerns that examiners have between retail banking services and noted that the Agencies should clarify refused to consider certain types of community development services can that the evaluation of alternative documentation. be traced to the inclusion of retail delivery systems is conducted strictly The Agencies solicited comment on services or products that are tailored to within the assessment areas defined by all aspects of this proposed new Q&A meet the needs of low- or moderate- branches and emphasize that CRA and specifically requested commenters’ income individuals in existing Q&A evaluations do not consider alternative views on two questions, as discussed § ll.12(i)–3, which lists examples of delivery systems outside of an below. The Agencies received 26 community development services. Of institution’s assessment area. Currently, comments that were generally the 11 examples of community the regulations provide for supportive of the intent of the Q&A; development services listed in Q&A consideration of alternative delivery however, most of these commenters did § ll.12(i)–3, five are related to branch systems to the extent that they meet the not believe that the proposed Q&A delivery systems and retail products or needs of low- and moderate-income would achieve its stated purpose. A services. They involve: (i) providing individuals within an institution’s number of commenters asserted that the financial services to low- or moderate- assessment area. proposal did not elevate the relative income individuals through branches importance of community development and other facilities located in low- or III. New Questions and Answers services compared to retail banking moderate-income geographies; (ii) Proposed in 2014 services as the Agencies had intended. increasing access to financial services A. Community Development Services The Agencies specifically requested by opening or maintaining branches or comment on whether the proposed other facilities that help to revitalize or i. Evaluating Retail Banking and guidance provided sufficient clarity stabilize a low- or moderate-income Community Development Services regarding how examiners evaluate retail geography, a designated disaster area, or The Agencies proposed a new Q&A and community development services a distressed or underserved § ll.24(a)–1 to clarify how examiners under the large institution service test nonmetropolitan middle-income evaluate retail and community and if not, suggestions that would make geography; (iii) providing electronic development services under the large the Q&A clearer. Community benefits transfer and point of sale institution service test to improve organization and industry commenters terminal systems; (iv) providing consistency and reduce uncertainty responded generally that the proposed international remittance services; and regarding the performance criteria in the Q&A did not clarify how retail services (v) providing other financial services service test, and to encourage additional that benefit low- and moderate-income with the primary purpose of community community development services. individuals or geographies and that are development, such as low-cost savings For retail banking services, the described as community development or checking accounts, including proposed new Q&A stated that services under existing Q&A electronic transfer accounts, individual ‘‘examiners consider the availability and § ll.12(i)–3 (such as low-cost development accounts, or free or low- effectiveness of an institution’s systems transaction accounts and electronic cost government, payroll, or other check for delivering banking services, benefit transfer accounts) are evaluated. cashing services. particularly in low- and moderate- Rather, at least one commenter believed The Agencies have revised Q&A income geographies and to low- and the proposed Q&A exacerbated the § ll.24(a)–1 in response to these moderate-income individuals; the range confusion that currently exists. One comments. The final Q&A incorporates, of services provided in low-, community organization commenter as examples, most of the retail banking moderate-, middle-, and upper-income contended that the Agencies incorrectly services currently listed as community geographies; and the degree to which labelled low-cost transaction and development services under Q&A the services are tailored to meet the savings accounts as community § ll.12(i)–3. These examples needs of those geographies.’’ With development services, rather than as demonstrate retail banking services that regard to community development retail banking services. This sentiment improve access to financial services, or services, the proposed Q&A stated that was shared by a few other commenters decrease costs, for low- or moderate- examiners would consider the extent of who asserted that basic transaction income individuals. The examples community development services savings and checking accounts should include: low-cost deposit accounts; offered. be considered retail banking services. electronic benefit transfer accounts and The proposed Q&A sought to Commenters noted that, under existing point of sale systems; individual differentiate retail services that are also guidance, these services could be development accounts; free or low-cost considered community development classified as either retail banking or government, payroll, or other check services under existing Q&A community development services. cashing services; and reasonably priced § ll.12(i)–3 (such as low-cost banking These commenters and others urged international remittance services. accounts targeted to low- or moderate- the Agencies to more clearly demarcate In turn, as mentioned above, the income individuals) from other retail the boundaries between retail banking Agencies have deleted all of the retail banking services by stating that services and community development banking services from the list of examiners would consider whether services in the Questions and Answers. examples of community development these retail banking services are They requested that the Agencies services in Q&A § ll.12(i)–3. This responsive and effective in that they provide specific examples or additional conforming change is intended to ‘‘improve or increase access to financial explanation that more clearly identifies address commenters’ concerns that services by low- and moderate-income which products and services will be including examples of retail banking individuals or in low- or moderate- evaluated under the retail banking services, even when such services income geographies.’’ In addition, the services criteria and which will be increase access by, or reduce costs for, proposed Q&A stated that examiners considered as community development low- or moderate-income individuals or will consider any information provided services. geographies, in the list of examples for
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community development services leads planned to weigh the relative and services offered are responsive to to confusion and inconsistencies importance of retail banking and community needs. A few industry and regarding how retail services are community development services under community organization commenters, considered during the evaluation the service test pursuant to the proposed however, sought further clarification process. Q&A. For instance, one industry regarding the types of information that The Agencies are also adopting commenter urged the Agencies to state would be considered to ensure conforming revisions to existing Q&A that community development services consistency. § ll.26(c)(3)–1 to ensure these will be reflected in the total ‘‘score’’ that The Agencies specifically requested activities are appropriately evaluated in is attributed to the service test. Other comment on what types of information intermediate small institutions. This commenters noted that the Agencies financial institutions are likely to Q&A addresses what activities appear to give more consideration to maintain that may demonstrate that an examiners consider when evaluating the branches than other services when institution’s community development provision of community development evaluating a large institution’s service services are responsive to the needs of services by an intermediate small test performance. low- or moderate-income individuals or institution. To ensure that intermediate In response to these comments, the in low- or moderate-income small institutions continue to receive Agencies have revised Q&A geographies. In response to this consideration under their community § ll.24(a)–1 to stress that both retail question, both community organization development test for retail banking banking and community development and industry commenters provided services that increase access by, or services are important factors under the several examples of the types of reduce costs for, low- or moderate- large institution service test. The information that are or should be income individuals, the Agencies are revision to the Q&A now states: ‘‘Retail maintained to demonstrate such revising existing Q&A § ll.26(c)(3)–1. banking services and community responsiveness, including: (i) Although the revised Q&A labels development services are two Documentation evidencing attendance services such as electronic benefit components of the service test and are at and involvement in applicable transfer accounts, individual both important in evaluating a large community events; (ii) surveys development accounts, and free or low- institution’s performance.’’ The completed by the financial institution to cost government, payroll, or other check Agencies note that, as with other aspects ascertain community needs; (iii) an cashing services as retail services, of the CRA evaluation process, the institution’s records of discussions with examiners will continue to consider relative weighting of retail banking and community contacts; and (iv) publicly these services when evaluating the community development services will available market research data that provision of community development depend on the financial institution’s support the importance to low- or services for an intermediate small performance context. moderate-income families for a institution when the services increase Several commenters asserted that the particular type of service, such as access by, or reduce costs for, low- or proposed Q&A did not sufficiently financial literacy education services or moderate-income individuals. This Q&A explain how qualitative factors, such as Volunteer Income Tax Assistance is revised to clarify also that branches ‘‘effectiveness’’ and ‘‘availability,’’ (VITA) tax preparation. Some and other facilities in low- or moderate- would be evaluated in the context of commenters suggested that the income geographies, designated disaster retail banking and community examples would be useful and effective areas, or distressed or underserved development services. These additions to the final Q&A. nonmetropolitan middle-income commenters urged the Agencies to The examples offered by commenters geographies are considered as providing provide more specificity by defining key are practical suggestions of the types of community development services under terms or providing concrete examples of information institutions could collect or the community development test the metrics for the key concepts of maintain to demonstrate the applicable to intermediate small ‘‘availability and effectiveness’’ and responsiveness of a community institutions. ‘‘responsiveness.’’ The Agencies did not development service. However, the The Agencies made one additional revise Q&A § ll.24(a)–1 to address the Agencies have chosen not to include the revision based on these comments. qualitative factors associated with retail above suggested examples in the final Because all of the examples of banking and community development Q&A because some examiners and community development services that services because the Agencies believe bankers may view examples as now remain in revised Q&A other Q&As adequately discuss what is requirements, which could lead to § ll.12(i)–3 are more direct examples meant by ‘‘availability and unintended burden on financial of community development services, the effectiveness’’ and ‘‘responsiveness.’’ institutions. The Agencies remind Agencies added a cross-reference to See Q&As § ll.24(d)–1 and institutions that they can provide any Q&A § ll.12(i)–3 in the discussion of § ll.21(a)–3, respectively. information to examiners that community development services in The proposed Q&A stated that demonstrates responsiveness. new Q&A § ll.24(a)–1. examiners will consider any One community organization In addition to addressing the information provided by the institution commenter opined that community confusion between retail and that demonstrates its community development services are currently community development services, some development services are responsive to defined too narrowly and urged the commenters asserted that proposed the needs of low- or moderate-income Agencies to broaden the definition of Q&A § ll.24(a)–1 did not adequately individuals and low- or moderate- community development services to emphasize the importance of income geographies. Industry include access for small businesses. community development services or commenters were particularly This commenter contended that address concerns that community supportive of this proposal. These financial institutions should receive development services are not given commenters opined that examiners CRA consideration when loan officers sufficient consideration in the service often impose excessive and refer a small business applicant to an test relative to retail banking services. A unreasonable documentation intermediary when the applicant does few commenters contended that it requirements on institutions to not qualify for a bank loan. The remained unclear how the Agencies demonstrate that particular products Agencies note that Q&A § ll.12(i)–3
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already addresses bank referral effective and responsive. However, ‘‘responsiveness,’’ respectively, to direct programs for small businesses and commenters disagreed on whether the readers to additional guidance regarding provides that they may qualify for proposed Q&A fully achieved its stated these criteria. community development service goal of clarifying the assessment of Further, the final Q&A discusses how consideration when the financial qualitative and quantitative factors or qualitative performance criteria institution ‘‘[provides] technical explaining the importance of qualitative augment the consideration given to assistance on financial matters to small factors. community development services by businesses or community development The Agencies specifically requested recognizing that community organizations, including organizations feedback on whether the proposed development services sometimes require and individuals who apply for loans or guidance sufficiently explained the special expertise and effort on the part grants under the Federal Home Loan importance of the qualitative factors of the financial institution and provide Banks’ Affordable Housing Program.’’ related to community development benefit to the community that would not Finally, to reflect more closely the services. Commenters addressing this otherwise be possible. The final Q&A regulatory factors used to evaluate question were divided, with a slight states that these assessments will community development services, the majority stating the proposed Q&A depend on the impact of a particular Agencies have revised final Q&A sufficiently explained the importance of activity on community needs and the § ll.24(a)–1 to state clearly that the qualitative factors related to benefits received by a community and examiners evaluate the extent of community development services. For illustrates this point with an example of community development services and example, one community organization a community development service that their innovativeness and responsiveness commenter found the guidance on would be considered responsive to to community needs. examiners taking into consideration the credit and community needs. degree to which community In addition, some commenters, ii. Quantitative and Qualitative development services are responsive to representing both the industry and Measures of Community Development community needs helpful. Other community organizations, asserted that Services commenters, representing both the the proposed Q&A did not provide The Agencies proposed new Q&A industry and community organizations, sufficient guidance regarding how the § ll.24(e)–2 to clarify how community noted that clarifying that examiners quantitative and qualitative factors development services are quantitatively should not rely solely on quantitative would be comparatively weighted under and qualitatively evaluated. The new factors, such as hours spent by the service test. Some commenters Q&A is meant to address inconsistencies employees conducting financial literacy expressed support for a balanced in how community development workshops, was adequate guidance and approach to how qualitative and services have been evaluated would help give examiners needed quantitative factors are evaluated in quantitatively and to respond to direction to consider other factors assessing community development concerns that qualitative factors, such as besides hours worked when making service performance, while others whether community development evaluations of community development indicated a preference for weighting one services are effective or responsive to services. Other commenters viewed that factor over the other. For instance, one community needs, receive inadequate statement as inadequate. These industry commenter preferred using the consideration. Thus, the proposed Q&A commenters noted the proposed Q&A hours spent by employees performing noted that both quantitative and mentioned only that the review ‘‘is not community development services as the qualitative aspects of community limited to a single quantitative factor’’ baseline measure, augmented with a development services are considered rather than listing examples of the review of responsiveness, innovation, during an institution’s evaluation. qualitative factors that examiners could leadership, complexity, and flexibility, With regard to quantitative factors, consider. Commenters further noted that to the extent that the institution chooses the proposed Q&A stated that examiners the proposed Q&A did not adequately to provide such information. State assess the extent to which community explain qualitative factors, such as financial regulator commenters took an development services are offered and responsiveness, and asserted that the opposing position, suggesting that used by the community. This review is proposal could benefit from the qualitative aspects of community not limited to a single quantitative inclusion of specific examples of how development services should serve as factor, such as the number of hours that examiners assess the degree to which the primary driver in determining financial institution staff devotes to a services are responsive to community whether services are effective and particular community development needs. responsive. service. Rather, an evaluation of The Agencies have revised Q&A The Agencies do not believe it is community development services § ll.24(e)–2 to address some of these necessary to revise the Q&A to address assesses the degree to which those comments. The final Q&A incorporates these comments. First, the Agencies services are responsive to community language that, consistent with regulatory note that examiners do not use a needs. Finally, the proposed Q&A stated factors, more explicitly states that specific formula when quantitatively that examiners would consider any examiners will consider community and qualitatively evaluating community relevant information provided by the development services qualitatively by development services. As with all institution and from third parties to assessing the degree to which those aspects of an institution’s CRA quantify the extent and responsiveness services are innovative or responsive to performance evaluation, the of community development services. community needs. The proposed Q&A performance context of the institution Overall, the Agencies received 19 did not include a reference to will affect how the qualitative and comments addressing this proposed ‘‘innovativeness,’’ although it is a quantitative factors are considered Q&A. Commenters unanimously qualitative factor included in the under the service test. Similarly, some supported the Agencies’ intent to clarify regulation. See 12 CFR ll.24(e). In industry commenters asserted that the the quantitative and qualitative factors addition, the Agencies added cross- Q&A should specify how many that examiners review when evaluating references to Q&As § ll.21(a)–4 and community development services community development services to § ll.21(a)–3, which discuss the would be needed in order to obtain a determine whether these services are qualitative factors ‘‘innovativeness’’ and rating of ‘‘outstanding’’ or
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‘‘satisfactory.’’ However, examiners do receive favorable CRA consideration. needs of their communities based on not utilize specific benchmarks. Instead, The commenter asserted that, while their performance context. The the nature of each community quantitative information is necessary in proposed new Q&A indicated that development service and the assessing whether a community examiners would look at not only the performance context of the institution development service is effective in volume and types of an institution’s are considered. assisting low- or moderate-income activities, but also how effective those The proposed Q&A stated that individuals and families to access the activities have been. The proposed Q&A examiners will consider any relevant financial system, obtaining this noted that examiners always evaluate information provided by the institution information can be very expensive and responsiveness in light of an or from a third party to quantify the resource intensive. The commenter institution’s performance context. The extent and responsiveness of maintained that providing an incentive proposed new Q&A also suggested community development services. to finance data collection systems in several information sources that could Industry commenters were particularly nonprofit organizations would increase inform examiners’ evaluations of supportive of this aspect of the proposal the availability and quality of this much performance context and because they viewed it as a flexible needed information. The Agencies note responsiveness. policy. that the CRA regulations allow for the The Agencies received 28 public With regard to relevant information, consideration of grants or other funding comments addressing the proposed new the Agencies specifically asked what to nonprofit organizations with a Q&A. With few exceptions, the types of information financial community development purpose as commenters were supportive of the institutions and third parties would be qualified investments or community Agencies’ intent to clarify how likely to maintain that may be used to development loans. Such funding could examiners evaluate an institution’s demonstrate the extent to which be used by these recipients for a variety responsiveness to credit and community community development services are of purposes, including data collection. development needs. However, a number offered and used. In response, of commenters, representing both the commenters provided several examples B. Responsiveness and Innovativeness industry and community organizations, of relevant information that may be i. Responsiveness questioned whether the proposed new available, including: (i) data on the Q&A would help examiners or bankers number of low- and moderate-income The term ‘‘responsiveness’’ is found understand that a project or program has individuals attending counseling throughout the CRA regulations and the been responsive to credit and sessions; (ii) demographic information Questions and Answers. Generally, the community development needs. on clients or customers benefitting from Agencies’ regulations and guidance The Agencies requested comment on a service; (iii) records of the number and promote an institution’s responsiveness three questions relating to proposed types of community development to credit and community development new Q&A § ll.21(a)–3. First, the service provided; and (iv) attestations needs by providing that the greater an Agencies asked whether the proposed collected via a survey of employees, institution’s responsiveness to credit new Q&A appropriately highlighted the directors, and officers that tracks hourly and community development needs in importance of responsiveness to credit involvement in community its assessment area(s), the higher the and community development needs and development services. CRA rating that is assigned to that provided a flexible, yet clear, standard Rather than referring to only a single institution. See, e.g., 12 CFR ll, for determining how financial quantitative factor as an example, final appendix A, section (b)(2)(i). institutions would receive Q&A § ll.24(e)–2 includes a list of Responsiveness is generally a consideration. An industry commenter examples of quantitative factors that consideration in all of the ratings that and a community organization examiners may assess to determine the the Agencies assign. commenter agreed that the importance extent to which community The Agencies’ Questions and Answers of responsiveness to credit and development services are offered and address responsiveness in various community development needs was used. The expanded list should provide contexts. For example, Q&A highlighted, but that there was also an additional clarity and address concerns § ll.21(a)–2 explains that increase in subjectivity in the evaluation that examiners and institutions may responsiveness is meant to lend a process and burden to institutions, as default to ‘‘the number of hours qualitative element to the rating system. well as a shortage of detail. To help financial institution staff devotes to a Other Q&As state that examiners should clarify how the Agencies review particular community development give greater weight to those activities responsiveness and the flexible service’’ as the only quantitative that are most responsive to community approach taken, a new sentence was measure of community development needs, including the needs of low- or added at the beginning of the answer to services. The final Q&A includes the moderate-income individuals and provide a road map of the three factors following additional examples of geographies. See, e.g., Q&A that examiners consider when quantitative factors: (i) The number of § ll.12(g)(4)(ii)–2. evaluating responsiveness: quantity, low- and moderate-income individuals Because the concept of quality, and performance context. The participating in a community ‘‘responsiveness’’ is utilized in the CRA answer then describes each of the three development activity; (ii) the number of regulations and Questions and Answers factors. organizations served by a community applicable to all covered institutions, The Agencies also asked whether development activity; and (iii) the the Agencies proposed a new Q&A there were other sources of information number of sessions of a community § ll.21(a)–3 to set forth general that examiners should consider when development service activity. guidance on how examiners evaluate evaluating an institution’s Finally, a community organization whether a financial institution has been responsiveness to credit and community commenter suggested that the Agencies responsive to credit and community development needs. Commenters revise the proposed Q&A to explicitly development needs. The Agencies representing both the industry and state that institutions’ funding of intended the proposed Q&A to community organizations suggested a community organizations to enable encourage institutions to think number of information sources, them to collect quantitative data will strategically about how to best meet the including targeted outreach to local
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organizations; local, state, and Federal development activities to support. In participation in the organization or information compilations; reports and support of their views, commenters activity. New Q&A § ll.21(a)–3, as studies by academic institutions; and asserted that (i) the requirement to first adopted, also includes an example of the Consumer Financial Protection demonstrate responsiveness to such an investment. Bureau’s (CFPB) complaint database. assessment area needs is too vague to Finally, several industry commenters Two community organization cause a change in institutions’ noted that the proposed new Q&A stated commenters asserted that examiners investment strategies; (ii) due to that ‘‘activities are particularly should be required to review increased subjectivity and additional responsive to community development information from all of the sources cited burden of proof in the evaluation needs if they benefit low- or moderate- in the proposed Q&A. An industry process, institutions will likely maintain income individuals, low- or moderate- commenter stated that, although the their focus on assessment area activities; income geographies, designated disaster Agencies should accept information (iii) the proposed Q&A does not provide areas, or distressed or underserved from financial institutions, care must be insight to help institutions make nonmetropolitan middle-income taken not to require institutions to determinations on which community geographies.’’ They asked whether any perform needs assessments or evaluate development activities to support; and activity that has a community the institutions on the quality of (iv) a bright line test would be development purpose, as defined in the information they provide, consistent preferable to an evaluation of whether CRA regulations, would be with Q&A § ll.21(b)(2)–1. Another the financial institution has been ‘‘particularly’’ responsive. If so, they industry commenter suggested that the responsive to credit and community noted that financing for small Agencies should ensure that regulatory development needs and opportunities. businesses or small farms should also be requirements, guidelines, and actions by On the other hand, the sixth commenter, included. And, if not, the Agencies examiners are flexible and do not create representing the industry, stated that the should clarify what is meant by that unnecessary burden. Two other proposed Q&A may encourage financial statement. In addition, two community commenters, one representing the institutions to focus on community organization commenters addressed the industry and the other a community development activities that benefit low- importance of the ‘‘impact’’ of organization, stated that they and moderate-income individuals or responsive activities. These commenters appreciated the clarification that geographies, disaster areas, and asserted that responsiveness must be examiners should not rely so heavily on distressed or underserved demonstrated through impact and quantitative factors. They noted that the nonmetropolitan middle-income outcomes in meeting a documented unique needs and opportunities in an geographies. This commenter believed community need. To address these institution’s local community should be that recognizing responsiveness rather related comments, the Agencies have the basis for evaluating the institution’s than placing all the emphasis on deleted the statement addressing performance. quantitative benchmarks will encourage activities that would be ‘‘particularly In response to these comments, the financial institutions to engage in responsive’’ that caused the confusion. Agencies expanded the list of sources of various community development In its place, the final Q&A explains that, information about credit and activities. when evaluated qualitatively, some community development needs and activities are more responsive than opportunities that examiners may To respond to commenters’ assertion others, and that activities are more consider by adding ‘‘consumer that new Q&A § ll.21(a)–3, as responsive if they are successful in complaint information.’’ To address proposed, would not assist a financial meeting identified credit and commenters’ concern that a formal institution in determining whether a community development needs. The needs assessment will be expected from community development activity in the final Q&A also includes an example of financial institutions, the Agencies have broader statewide or regional area that two community development activities, deleted the reference to an assessment includes the institution’s assessment one of which would be considered more prepared by the institution and have area(s) would receive CRA responsive than the other, to describe clarified that examiners will consider consideration, the Agencies have added this concept. any relevant information provided to to the final Q&A a new paragraph ii. Innovativeness examiners by the financial institution discussing how examiners will that is maintained by the institution in determine whether an institution has The Agencies proposed a new Q&A its ordinary course of business. been responsive to the credit and § ll.21(a)–4 in response to reports Finally, the Agencies asked whether community development needs of its about inconsistencies in the types of the new Q&A would help a financial assessment area(s). First, examiners will activities considered innovative and institution in making decisions about consider as responsive all of the requests from financial institutions that the community development activities institution’s community development the Agencies provide clarification of the in which it will participate, particularly activities in its assessment area(s). ‘‘innovativeness’’ standard found if those activities benefit individuals or Examiners will also consider as throughout the CRA regulations. For geographies located somewhere in the responsive to assessment area needs any example, the large institution lending broader statewide or regional area that community development activities that test evaluates the complexity and includes the institution’s assessment support an organization or activity that innovativeness of community area(s), but that may not benefit the covers an area that is larger than, but development lending and the institution’s assessment area(s). See includes, the institution’s assessment institution’s use of innovative or flexible Q&A § ll.12(h)–6. Of the six area(s). If the purpose, mandate, or lending practices in a safe and sound commenters who addressed this function of the organization or activity manner to address the credit needs of question, five commenters (two includes serving the institution’s low- or moderate-income individuals or representing the industry and three assessment area(s), it will be considered geographies. See 12 CFR ll.22(b)(4) representing community development responsive to assessment area needs and (5). The large institution investment funds) believed that proposed Q&A even if the institution’s assessment test evaluates the innovativeness or § ll.21(a)–3 would not help bankers area(s) did not receive an immediate or complexity of qualified investments. to determine which community direct benefit from the institution’s See 12 CFR ll.23(e)(2). Similarly, the
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large institution service test evaluates needs and had a positive demonstrable With regard to comments we received the innovativeness and responsiveness impact on the communities they were about innovative products and services of community development services. meant to serve. Industry commenters already in the market, the Agencies See 12 CFR ll.24(e)(2). The sought language stating that continue to believe that innovativeness performance criteria in the community innovativeness is not required, lack of it could include a financial institution’s development test for wholesale or will not have a negative impact, and, adoption of products, services, or limited purpose banks include an when present, innovativeness will result delivery systems already in the market evaluation of the use of innovative or in positive consideration. These under certain circumstances. This is complex qualified investments, commenters also sought language especially true for smaller institutions community development loans, or specifically tying ‘‘innovativeness’’ to and institutions that have, to date, community development services. See the requirement that CRA activities offered only traditional products, 12 CFR ll.25(c)(2). Finally, when must be consistent with safe and sound services, or delivery systems. For sake of evaluating a strategic plan, the Agencies banking practices. clarity, the Agencies amended the final evaluate a plan’s measurable goals With regard to the proposed Q&A Q&A by removing the potentially according to the regulatory criteria, all statement addressing consideration for ambiguous terms ‘‘capacity’’ and of which mention innovativeness. See entities that do not have the ‘‘capacity ‘‘market leader.’’ Specifically, the 12 CFR ll.27(g)(3). to be market leaders,’’ commenters had Agencies replaced the reference to The proposed new Q&A stated that an differing points of view. One industry ‘‘market leader’’ with ‘‘leaders in innovative practice or activity will be commenter found that statement to be innovation’’ and explained that some considered when an institution overly broad, open to wide financial institutions may not be leaders implements meaningful improvements interpretation, and contrary to the intent in innovation ‘‘due to, for example, to products, services, or delivery of the Q&A. This general view was also available financial resources or systems that respond more effectively to shared by two other commenters. On the technological expertise.’’ customer and community needs, other hand, one community particularly to the needs of those organization commenter was expressly IV. Technical Corrections segments enumerated in the definition in favor of that statement, although The Agencies also have revised the of community development. Then, the another community organization Questions and Answers to address a proposed Q&A addressed commenter stated that a financial number of events that have occurred innovativeness in terms of an institution should not receive since the 2010 Questions and Answers institution’s market and customers, consideration for innovativeness when were published, including, for example, specifically stating that innovation bringing another institution’s innovative the elimination of the OTS and the includes the introduction of products, product to its assessment area(s) unless Thrift Financial Report (TFR), changes services, or delivery systems by it is doing so in a way that could not in data sources for income-level institutions, which do not have the have been, or was not otherwise, done. information, and the transfer to the capacity to be market leaders in In response to comments, the CFPB of rulemaking authority for innovation, to their low- or moderate- Agencies are adopting Q&A § l certain consumer financial laws. The income customers or segments of l.21(a)–4 with revisions to provide Agencies have made technical changes consumers or markets not previously additional clarification. As stated above, to a number of Q&As to provide this served. the Agencies note that ‘‘innovativeness’’ updated information. The Agencies’ proposal stressed that is a regulatory consideration in a variety A. Elimination of the OTS institutions should not innovate simply of performance tests. The Agencies to meet this criterion of the applicable continue to believe that there is a The Dodd-Frank Wall Street Reform test, particularly if, for example, existing benefit in clarifying the term, while not and Consumer Protection Act of 2010, products, services, or delivery systems overemphasizing its importance. The Public Law 111–203 (July 21, 2010) effectively address the needs of all final Q&A continues to make the point (Dodd-Frank Act), transferred powers of segments of the community. The that ‘‘innovative’’ practices need to be the OTS to the OCC, the FDIC, and the proposed Q&A also indicated that responsive to community needs but are Board, and eliminated the OTS. practices that cease to be innovative not required if existing products, Specifically, among other changes, the may still receive qualitative services, or delivery systems effectively Dodd-Frank Act transferred rulemaking consideration for being flexible, address the needs of all segments of the and supervisory authority over savings complex, or responsive. community. The final Q&A also adds a and loan holding companies and The majority of commenters cross-reference to Q&A § ll.28–1, supervisory authority over their non- addressing Q&A § ll.21(a)–4 were which explains how innovativeness is depository subsidiaries to the Board; largely supportive of the Agencies’ considered in the rating process and transferred rulemaking authority over intent to clarify how examiners evaluate states, in part: ‘‘The lack of innovative Federal savings associations and state an institution’s innovativeness. lending practices, innovative or savings associations, and supervisory Nevertheless, several of the commenters complex qualified investments, or authority over Federal savings posed questions about the import of innovative community development associations, to the OCC; and transferred ‘‘innovativeness’’ generally, services alone will not result in a ‘needs supervisory authority over state savings notwithstanding the specific references to improve’ CRA rating. However, under associations to the FDIC. See 12 U.S.C. to that term in the various CRA these tests, the use of innovative lending 5412–5413; see also 12 U.S.C. 2905. The performance tests. practices, innovative or complex OCC transferred the CRA rules Rather than focusing on qualified investments, and innovative applicable to savings associations from innovativeness, several of the community development services may 12 CFR part 563e to 12 CFR part 195. community organization commenters augment the consideration given to an The Agencies’ rules are substantially urged the Agencies to address institution’s performance under the similar throughout so that a general strengthening performance context quantitative criteria of the regulations, reference to the section and paragraph when evaluating whether the subject resulting in a higher performance of the rule (e.g., 12 CFR ll.12(a)) CRA activities were responsive to local rating.’’ continues to describe the same
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provision in all four of the rules. same time, the FFIEC announced that it Interagency Questions and Answers However, 12 CFR 195.11(c), which is would begin using ACS data to update Regarding Community Reinvestment applicable to savings associations, geographic incomes every five years. § ll.11—Authority, Purposes, and includes one less paragraph than the Q&A § ll.12(m)–1 has been revised to Scope rules applicable to national and state reflect the current data sources used to banks. As a result, the citation to section calculate income level data for § ll.11(c) Scope 11 of the rule in the related Q&As must geographies and individuals. §§ ll.11(c)(3) & 195.11(c)(2) Certain separately mention the rule applicable Special Purpose Institutions to savings associations. Therefore, the E. Data Reporting Agencies have changed the references §§ ll.11(c)(3) & 195.11(c)(2)—1: Is in the two Q&As addressing Q&As § ll.42–1, § ll.42–2, and the list of special purpose institutions §§ ll.11(c)(3) & 563e.11(c)(2) to § ll.42–6 address data submission, exclusive? §§ ll.11(c)(3) & 195.11(c)(2), validation, and software, respectively. A1. No, there may be other examples respectively. The Agencies have revised these Q&As of special purpose institutions. These to include updated data submission institutions engage in specialized B. Elimination of the Thrift Financial instructions and the correct Board activities that do not involve granting Report contact information for submitting credit to the public in the ordinary In 2010, when the Questions and questions about CRA data submission, course of business. Special purpose Answers were last updated, banks filed validation, and software. institutions typically serve as Call Reports and savings associations correspondent banks, trust companies, filed TFRs. Beginning with the first F. Outdated Reference or clearing agents or engage only in quarterly filing in 2012, all savings Q&A § ll.12(g)(4)–1 advises that the specialized services, such as cash associations began filing Call Reports. revised definition of ‘‘community management controlled disbursement The Agencies are removing the services. A financial institution, references to the TFR in 12 Q&As. One development,’’ which became effective in 2005 for banks and 2006 for savings however, does not become a special additional Q&A refers to the Uniform purpose institution merely by ceasing to associations, is applicable to all Thrift Performance Report (UTPR), make loans and, instead, making institutions. Because this revised which was phased out when savings investments and providing other retail associations began filing Call Reports. definition has been in effect for around banking services. Uniform Bank Performance Reports are 10 years, it has been shortened to omit §§ ll.11(c)(3) & 195.11(c)(2)—2: To now produced for savings associations, the historical information about its be a special purpose institution, must so the Agencies have removed the effective dates. The revised version an institution limit its activities in its reference to the UTPR in Q&A merely affirms that the definition of charter? § ll.26(b)(1)–1. The Agencies have ‘‘community development’’ is A2. No. A special purpose institution also adopted a consistent citation to the applicable to all institutions. may, but is not required to, limit the relevant sections of the Call Report and G. OCC Address Changes scope of its activities in its charter, have made revisions to effect those articles of association, or other corporate changes where necessary throughout the Q&A Appendix B to Part ll–1 organizational documents. An Questions and Answers. includes OCC-specific contact institution that does not have legal C. Home Mortgage Disclosure Act information. The OCC’s headquarters limitations on its activities, but has (HMDA) Regulation moved in December 2012; thus, the voluntarily limited its activities, Q&A has been revised to reflect the however, would no longer be exempt The Dodd-Frank Act transferred from Community Reinvestment Act exclusive rulemaking authority to the OCC’s new street address, which is to be included in national banks’ and Federal (CRA) requirements if it subsequently CFPB for certain consumer financial engaged in activities that involve laws, including the HMDA. The CFPB savings associations’ public notices. In addition, a Web site URL has been granting credit to the public in the subsequently published its own rule to ordinary course of business. An 12 added that national banks and Federal implement HMDA, 12 CFR part 1003. institution that believes it is exempt savings associations may include in Four Q&As referred to home mortgage from CRA as a special purpose their public notices that will allow data collected under the HMDA and institution should seek confirmation of provided a citation to the Board’s interested parties to find information this status from its supervisory Agency. HMDA rule at 12 CFR part 203. The about planned OCC CRA evaluations in Agencies have updated those citations upcoming quarters. Similarly, an email § ll.12—Definitions to refer to the CFPB’s HMDA rule at 12 address has been added that national § ll.12(a) Affiliate CFR part 1003. banks and Federal savings associations § ll.12(a)—1: Does the definition of D. Income Level Data Sources may include in their public notices to which commenters may submit ‘‘affiliate’’ include subsidiaries of an Q&A § ll.12(m)–1 discusses the electronic comments about institutions’ institution? sources of income level data for A1. Yes, ‘‘affiliate’’ includes any performance in helping to meet geographies and individuals. Beginning company that controls, is controlled by, community credit needs. with the FFIEC’s geographic income or is under common control with data published in 2012, the FFIEC The text of the final Interagency another company. An institution’s discontinued using decennial census Questions and Answers follows: subsidiary is controlled by the data to calculate geographic income institution and is, therefore, an affiliate. levels and began using the U.S. Census § ll.12(f) Branch Bureau’s American Community Survey (ACS) five-year estimate data. At the § ll.12(f)—1: Do the definitions of ‘‘branch,’’ ‘‘automated teller machine 12 See 80 FR 66127 (Oct. 28, 2015). (ATM),’’ and ‘‘remote service facility
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(RSF)’’ include mobile branches, ATMs, middle-income area, if the mall consideration under the applicable test. and RSFs? stabilizes the adjacent low-income The same would be true if the A1. Yes. Staffed mobile offices that community by providing needed community development activity are authorized as branches are shopping services that are not otherwise described in a particular Q&A were a considered ‘‘branches,’’ and mobile available in the low-income community. qualified investment or community ATMs and RSFs are considered ‘‘ATMs’’ § ll.12(g)—3: Does the regulation development service. For example, Q&A and ‘‘RSFs.’’ provide flexibility in considering § ll.12(h)–1 provides an example of a § ll.12(f)—2: Are loan production performance in high-cost areas? community development loan to a not- offices (LPO) branches for purposes of A3. Yes, the flexibility of the for-profit organization supporting the CRA? performance standards allows primarily low- or moderate-income A2. LPOs and other offices are not examiners to account in their housing needs. Similarly, a grant to the ‘‘branches’’ unless they are authorized evaluations for conditions in high-cost same not-for-profit organization would as branches of the institution through areas. Examiners consider lending and be considered a qualified investment or the regulatory approval process of the services to individuals and geographies technical assistance, such as writing a institution’s supervisory Agency. of all income levels and businesses of grant proposal for the not-for-profit § ll.12(g) Community Development all sizes and revenues. In addition, the organization, would be considered as a flexibility in the requirement that community development service. § ll.12(g)—1: Are community community development loans, Further if a financial institution engaged development activities limited to those community development services, and in all of these activities, each would be that promote economic development? qualified investments have as their considered under the applicable test. A1. No. Although the definition of ‘‘primary’’ purpose community See Q&A § ll.23(b)–1. ‘‘community development’’ includes development allows examiners to Moreover, lists of examples included activities that promote economic account for conditions in high-cost throughout the Questions and Answers development by financing small areas. For example, examiners could are not exhaustive. A Q&A may include businesses or farms, the rule does not take into account the fact that activities examples to demonstrate activities that limit community development loans address a credit shortage among middle- may qualify under that Q&A, but the and services and qualified investments income people or areas caused by the examples are not the only activities that to those activities. Community disproportionately high cost of building, might qualify. Financial institutions development also includes community- maintaining or acquiring a house when may submit information about activities or tribal-based child care, educational, determining whether an institution’s they believe meet the definition of health, social services, or workforce loan to or investment in an organization community development loan, qualified development or job training programs that funds affordable housing for investment, or community development targeted to low- or moderate-income middle-income people or areas, as well service to examiners for consideration. persons, affordable housing for low- or as low- and moderate-income people or ll moderate-income individuals, and areas, has as its primary purpose § .12(g)(1) Affordable Housing activities that revitalize or stabilize low- community development. See also Q&A (Including Multifamily Rental Housing) or moderate-income areas, designated § ll.12(h)–8 for more information on for Low- or Moderate-Income disaster areas, or underserved or ‘‘primary purpose.’’ individuals distressed nonmetropolitan middle- § ll.12(g)—4: Can examples of § ll.12(g)(1)—1: When determining income geographies. community development activities whether a project is ‘‘affordable housing § ll.12(g)—2: Must a community discussed in a particular Q&A also for low- or moderate-income development activity occur inside a low- apply to other types of community individuals,’’ thereby meeting the or moderate-income area, designated development activities not specifically definition of ‘‘community disaster area, or underserved or discussed in that Q&A if they have a development,’’ will it be sufficient to use distressed nonmetropolitan middle- similar community development a formula that relates the cost of income area in order for an institution purpose? ownership, rental, or borrowing to the to receive CRA consideration for the A4. Yes. The Interagency Questions income levels in the area as the only activity? and Answers Regarding Community factor, regardless of whether the users, A2. No. Community development Reinvestment (Questions and Answers) likely users, or beneficiaries of that includes activities, regardless of their provide examples of particular activities affordable housing are low- or location, that provide affordable that may receive consideration as moderate-income individuals? housing for, or community services community development activities. A1. The concept of ‘‘affordable targeted to, low- or moderate-income Because a particular Q&A often housing’’ for low- or moderate-income individuals and activities that promote describes a single type of community individuals does hinge on whether low- economic development by financing development activity, such as a or moderate-income individuals benefit, small businesses and farms. Activities community development loan, the or are likely to benefit, from the that stabilize or revitalize particular corresponding examples are of housing. It would be inappropriate to low- or moderate-income areas, community development loans. give consideration to a project that designated disaster areas, or However, because community exclusively or predominately houses underserved or distressed development loans, qualified families that are not low- or moderate- nonmetropolitan middle-income areas investments, and community income simply because the rents or (including by creating, retaining, or development services all must have a housing prices are set according to a improving jobs for low- or moderate- primary purpose of community particular formula. income persons) also qualify as development, a qualified investment or For projects that do not yet have community development, even if the community development service that occupants, and for which the income of activities are not located in these areas. supports a community development the potential occupants cannot be One example is financing a supermarket purpose similar to the activity described determined in advance, or in other that serves as an anchor store in a small in the context of the community projects where the income of occupants strip mall located at the edge of a development loan would likely receive cannot be verified, examiners will
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review factors such as demographic, school at which the majority of students Æ in areas targeted for redevelopment economic, and market data to determine qualify for free or reduced-price meals by Federal, state, local, or tribal the likelihood that the housing will under the U.S. Department of governments; ‘‘primarily’’ accommodate low- or Agriculture’s National School Lunch Æ by financing intermediaries that moderate-income individuals. For Program. lend to, invest in, or provide technical example, examiners may look at median • The community service is targeted assistance to start-ups or recently rents of the assessment area and the to individuals who receive or are formed small businesses or small farms; project; the median home value of either eligible to receive Medicaid. or Æ through technical assistance or the assessment area, low- or moderate- • The community service is provided supportive services for small businesses income geographies or the project; the to recipients of government assistance or farms, such as shared space, low- or moderate-income population in programs that have income technology, or administrative assistance; the area of the project; or the past qualifications equivalent to, or stricter or performance record of the than, the definitions of low- and organization(s) undertaking the project. • Federal, state, local, or tribal moderate-income as defined by the CRA economic development initiatives that Further, such a project could receive Regulations. Examples include U.S. consideration if its express, bona fide include provisions for creating or Department of Housing and Urban improving access by low- or moderate- intent, as stated, for example, in a Development’s section 8, 202, 515, and prospectus, loan proposal, or income persons to jobs or to job training 811 programs or U.S. Department of or workforce development programs. community action plan, is community Agriculture’s section 514, 516, and development. The agencies will presume that any Supplemental Nutrition Assistance loan or service to or investment in a § ll.12(g)(2) Community Services programs. SBDC, SBIC, Rural Business Investment Targeted to Low- or Moderate-Income § ll.12(g)(3) Activities That Promote Company, New Markets Venture Capital Individuals Economic Development by Financing Company, New Markets Tax Credit- § ll.12(g)(2)—1: Community Businesses or Farms That Meet Certain eligible Community Development development includes community Size Eligibility Standards Entity, or Community Development services targeted to low- or moderate- Financial Institution that finances small income individuals. What are examples § ll.12(g)(3)—1: ‘‘Community businesses or small farms, promotes of ways that an institution could development’’ includes activities that economic development. (See also Q&As determine that community services are promote economic development by § ll.42(b)(2)–2, § ll.12(h)–2, and offered to low- or moderate-income financing businesses or farms that meet § ll.12(h)–3 for more information individuals? certain size eligibility standards. Are all about which loans may be considered A1. Examples of ways in which an activities that finance businesses and community development loans.) institution could determine that farms that meet the size eligibility Examiners will employ appropriate community services are targeted to low- standards considered to be community flexibility in reviewing any information or moderate-income persons include, development? provided by a financial institution that but are not limited to: A1. No. The concept of ‘‘community reasonably demonstrates that the • The community service is targeted development’’ under 12 CFR ll purpose, mandate, or function of the to the clients of a nonprofit organization .12(g)(3) involves both a ‘‘size’’ test and activity meets the ‘‘purpose test.’’ that has a defined mission of serving a ‘‘purpose’’ test that clarify what Examiners will also consider the low- and moderate-income persons, or, economic development activities are qualitative aspects of performance. For because of government grants, for considered under CRA. An institution’s example, activities will be considered example, is limited to offering services loan, investment, or service meets the more responsive to community needs if only to low- or moderate-income ‘‘size’’ test if it finances, either directly, a majority of jobs created, retained, and/ persons. or through an intermediary, businesses or improved benefit low- or moderate- • The community service is offered or farms that either meet the size income individuals. by a nonprofit organization that is eligibility standards of the Small ll located in and serves a low- or § .12(g)(4) Activities That Revitalize Business Administration’s Development or Stabilize Certain Geographies moderate-income geography. Company (SBDC) or Small Business • The community service is Investment Company (SBIC) programs, § ll.12(g)(4)—1: Is the definition of conducted in a low- or moderate-income or have gross annual revenues of $1 ‘‘community development’’ applicable area and targeted to the residents of the million or less. For consideration under to all institutions? area. the ‘‘size test,’’ the term financing is A1. The definition of ‘‘community • The community service is a clearly considered broadly and includes development’’ is applicable to all defined program that benefits primarily technical assistance that readies a institutions, regardless of a particular low- or moderate-income persons, even business that meets the size eligibility institution’s size or the performance if it is provided by an entity that offers standards to obtain financing. To meet criteria under which it is evaluated. ll other programs that serve individuals of the ‘‘purpose test,’’ the institution’s § .12(g)(4)–2: Will activities that all income levels. provide housing for middle-income and • loan, investment, or service must The community service is offered at promote economic development. These upper-income persons qualify for a workplace to workers who are low- activities are considered to promote favorable consideration as community and moderate-income, based on readily economic development if they support development activities when they help available data for the average wage for • to revitalize or stabilize a distressed or workers in that particular occupation or permanent job creation, retention, underserved nonmetropolitan middle- industry (see, e.g., http://www.bls.gov/ and/or improvement income geography or designated Æ bls/blswage.htm (Bureau of Labor for low- or moderate-income disaster areas? Statistics)). persons; A2. An activity that provides housing • The community service is provided Æ in low- or moderate-income for middle- or upper-income individuals to students or their families from a geographies; qualifies as an activity that revitalizes or
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stabilizes a distressed nonmetropolitan A1. Activities that revitalize or revitalization or stabilization activities middle-income geography or a stabilize a low- or moderate-income in a particular disaster area to assist in designated disaster area if the housing geography are activities that help to long-term recovery efforts, this time directly helps to revitalize or stabilize attract new, or retain existing, period may be extended. the community by attracting new, or businesses or residents. Examiners will § ll.12(g)(4)(ii)—2: What activities retaining existing, businesses or presume that an activity revitalizes or are considered to ‘‘revitalize or residents and, in the case of a stabilizes a low- or moderate-income stabilize’’ a designated disaster area, designated disaster area, is related to geography if the activity has been and how are those activities considered? disaster recovery. The Agencies approved by the governing board of an A2. The Agencies generally will generally will consider all activities that Enterprise Community or Empowerment consider an activity to revitalize or revitalize or stabilize a distressed Zone (designated pursuant to 26 U.S.C. stabilize a designated disaster area if it nonmetropolitan middle-income 1391) and is consistent with the board’s helps to attract new, or retain existing, geography or designated disaster area, strategic plan. They will make the same businesses or residents and is related to but will give greater weight to those presumption if the activity has received disaster recovery. An activity will be activities that are most responsive to similar official designation as consistent presumed to revitalize or stabilize the community needs, including needs of with a Federal, state, local, or tribal area if the activity is consistent with a low- or moderate-income individuals or government plan for the revitalization or bona fide government revitalization or neighborhoods. Thus, for example, a stabilization of the low- or moderate- stabilization plan or disaster recovery loan solely to develop middle- or upper- income geography. For example, plan. The Agencies generally will income housing in a community in need foreclosure prevention programs with consider all activities relating to disaster of low- and moderate-income housing the objective of providing affordable, recovery that revitalize or stabilize a would be given very little weight if sustainable, long-term loan designated disaster area, but will give there is only a short-term benefit to low- restructurings or modifications to greater weight to those activities that are and moderate-income individuals in the homeowners in low- or moderate- most responsive to community needs, community through the creation of income geographies, consistent with including the needs of low- or temporary construction jobs. (Except in safe and sound banking practices, may moderate-income individuals or connection with intermediate small help to revitalize or stabilize those neighborhoods. Qualifying activities institutions, a housing-related loan is geographies. may include, for example, providing not evaluated as a ‘‘community To determine whether other activities financing to help retain businesses in development loan’’ if it has been revitalize or stabilize a low- or the area that employ local residents, reported or collected by the institution moderate-income geography, examiners including low- and moderate-income individuals; providing financing to or its affiliate as a home mortgage loan, will evaluate the activity’s actual impact attract a major new employer that will unless it is a multifamily dwelling loan. on the geography, if information about create long-term job opportunities, See 12 CFR ll.12(h)(2)(i) and Q&As this is available. If not, examiners will including for low- and moderate-income § ll.12(h)–2 and § ll.12(h)–3.) An determine whether the activity is individuals; providing financing or activity will be presumed to revitalize or consistent with the community’s formal other assistance for essential stabilize such a geography or area if the or informal plans for the revitalization community-wide infrastructure, activity is consistent with a bona fide and stabilization of the low- or community services, and rebuilding government revitalization or moderate-income geography. For more needs; and activities that provide stabilization plan or disaster recovery information on what activities revitalize housing, financial assistance, and plan. See Q&As § ll.12(g)(4)(i)–1 and or stabilize a low- or moderate-income ll services to individuals in designated § ll.12(h)–5. geography, see Q&As § .12(g)–2 and § ll.12(h)–5. disaster areas and to individuals who In underserved nonmetropolitan have been displaced from those areas, ll middle-income geographies, activities § .12(g)(4)(ii) Activities That including low- and moderate-income that provide housing for middle- and Revitalize or Stabilize Designated individuals (see, e.g., Q&As § ll.12(i)– upper-income individuals may qualify Disaster Areas 3; § ll.12(t)–4; § ll.22(b)(2) & (3)–4; as activities that revitalize or stabilize § ll.12(g)(4)(ii)—1: What is a § ll.22(b)(2) & (3)–5; and § ll such underserved areas if the activities ‘‘designated disaster area’’ and how .24(d)(3)–1). also provide housing for low- or long does it last? moderate-income individuals. For A1. A ‘‘designated disaster area’’ is a § ll.12(g)(4)(iii) Activities That example, a loan to build a mixed- major disaster area designated by the Revitalize or Stabilize Distressed or income housing development that Federal government. Such disaster Underserved Nonmetropolitan Middle- provides housing for middle- and designations include, in particular, Income Geographies upper-income individuals in an Major Disaster Declarations § ll.12(g)(4)(iii)—1: What criteria underserved nonmetropolitan middle- administered by the Federal Emergency are used to identify distressed or income geography would receive Management Agency (FEMA) (http:// underserved nonmetropolitan, middle- positive consideration if it also provides www.fema.gov), but excludes counties income geographies? housing for low- or moderate-income designated to receive only FEMA Public A1. Eligible nonmetropolitan middle- individuals. Assistance Emergency Work Category A income geographies are those designated by the Agencies as being in § ll.12(g)(4)(i) Activities That (Debris Removal) and/or Category B distress or that could have difficulty Revitalize or Stabilize Low- or (Emergency Protective Measures). Examiners will consider institution meeting essential community needs Moderate-Income Geographies activities related to disaster recovery (underserved). A particular geography § ll.12(g)(4)(i)—1: What activities that revitalize or stabilize a designated could be designated as both distressed are considered to ‘‘revitalize or disaster area for 36 months following and underserved. As defined in 12 CFR stabilize’’ a low- or moderate-income the date of designation. Where there is ll.12(k), a geography is a census tract geography, and how are those activities a demonstrable community need to delineated by the U.S. Bureau of the considered? extend the period for recognizing Census.
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A nonmetropolitan middle-income attract new, or retain existing, including children from low- and geography will be designated as businesses or residents. An activity will moderate-income families; distressed if it is in a county that meets be presumed to revitalize or stabilize the • a new or rehabilitated one or more of the following triggers: (1) area if the activity is consistent with a communications infrastructure, such as An unemployment rate of at least 1.5 bona fide government revitalization or broadband internet service, that serves times the national average, (2) a poverty stabilization plan. The Agencies the community, including low- and rate of 20 percent or more, or (3) a generally will consider all activities that moderate-income residents; or population loss of 10 percent or more revitalize or stabilize a distressed • a new or rehabilitated flood control between the previous and most recent nonmetropolitan middle-income measure, such as a levee or storm drain, decennial census or a net migration loss geography, but will give greater weight that serves the community, including of five percent or more over the five- to those activities that are most low- and moderate-income residents. year period preceding the most recent responsive to community needs, Other activities in the area, such as census. including needs of low- or moderate- financing a project to build a sewer line A nonmetropolitan middle-income income individuals or neighborhoods. spur that connects services to a middle- geography will be designated as Qualifying activities may include, for or upper-income housing development underserved if it meets criteria for example, providing financing to attract while bypassing a low- or moderate- population size, density, and dispersion a major new employer that will create income development that also needs the that indicate the area’s population is long-term job opportunities, including sewer services, generally would not sufficiently small, thin, and distant from for low- and moderate-income qualify for revitalization or stabilization a population center that the tract is individuals, and activities that provide consideration in geographies designated likely to have difficulty financing the financing or other assistance for as underserved. If an underserved fixed costs of meeting essential essential infrastructure or facilities geography is also designated as a community needs. The Agencies will necessary to attract or retain businesses distressed or a disaster area, additional use as the basis for these designations or residents. See Q&As § ll activities may be considered to the ‘‘urban influence codes,’’ numbered .12(g)(4)(i)–1 and § ll.12(h)–5. revitalize or stabilize the geography, as ll ‘‘7,’’ ‘‘10,’’ ‘‘11,’’ and ‘‘12,’’ maintained § .12(g)(4)(iii)—4: What activities explained in Q&As § ll.12(g)(4)(ii)–2 by the Economic Research Service of the are considered to ‘‘revitalize or and § ll.12(g)(4)(iii)–3. U.S. Department of Agriculture. stabilize’’ an underserved The Agencies publish data source nonmetropolitan middle-income § ll.12(h) Community Development information along with the list of geography, and how are those activities Loan eligible nonmetropolitan census tracts evaluated? § ll.12(h)—1: What are examples of on the Federal Financial Institutions A4. The regulation provides that community development loans? Examination Council (FFIEC) Web site activities revitalize or stabilize an A1. Examples of community (http://www.ffiec.gov). underserved nonmetropolitan middle- development loans include, but are not § ll.12(g)(4)(iii)—2: How often will income geography if they help to meet limited to, loans to the Agencies update the list of essential community needs, including • borrowers for affordable housing designated distressed and underserved needs of low- or moderate-income rehabilitation and construction, nonmetropolitan middle-income individuals. Activities, such as including construction and permanent geographies? financing for the construction, financing of multifamily rental property A2. The Agencies will review and expansion, improvement, maintenance, serving low- and moderate-income update the list annually. The list is or operation of essential infrastructure persons; published on the FFIEC Web site (http:// or facilities for health services, • not-for-profit organizations serving www.ffiec.gov). education, public safety, public primarily low- and moderate-income To the extent that changes to the services, industrial parks, affordable housing or other community designated census tracts occur, the housing, or communication services, development needs; Agencies have determined to adopt a will be evaluated under these criteria to • borrowers to construct or one-year ‘‘lag period.’’ This lag period determine if they qualify for rehabilitate community facilities that will be in effect for the 12 months revitalization or stabilization are located in low- and moderate- immediately following the date when a consideration. Examples of the types of income areas or that serve primarily census tract that was designated as projects that qualify as meeting essential distressed or underserved is removed low- and moderate-income individuals; community needs, including needs of • from the designated list. Revitalization low- or moderate-income individuals, financial intermediaries including or stabilization activities undertaken would be Community Development Financial during the lag period will receive • a new or expanded hospital that Institutions (CDFI), New Markets Tax consideration as community serves the entire county, including low- Credit-eligible Community Development development activities if they would and moderate-income residents; Entities, Community Development have been considered to have a primary • an industrial park for businesses Corporations (CDC), minority- and purpose of community development if whose employees include low- or women-owned financial institutions, the census tract in which they were moderate-income individuals; community loan funds or pools, and located were still designated as • a new or rehabilitated sewer line low-income or community development distressed or underserved. that serves community residents, credit unions that primarily lend or § ll.12(g)(4)(iii)—3: What activities including low- or moderate-income facilitate lending to promote community are considered to ‘‘revitalize or residents; development; stabilize’’ a distressed nonmetropolitan • a mixed-income housing • local, state, and tribal governments middle-income geography, and how are development that includes affordable for community development activities; those activities evaluated? housing for low- and moderate-income • borrowers to finance environmental A3. An activity revitalizes or families; clean-up or redevelopment of an stabilizes a distressed nonmetropolitan • a renovated elementary school that industrial site as part of an effort to middle-income geography if it helps to serves children from the community, revitalize the low- or moderate-income
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community in which the property is the small institution is an intermediate A4. No. Credit cards issued to low- or located; small institution (see Q&A § ll.12(h)– moderate-income individuals for • businesses, in an amount greater 3). Multifamily dwelling loans, household, family, or other personal than $1 million, when made as part of however, may be considered as expenditures, whether as part of a the Small Business Administration’s community development loans as well program targeted to such individuals or 504 Certified Development Company as home mortgage loans. See also Q&A otherwise, do not qualify as community program; and § ll.42(b)(2)–2. development loans because they do not • borrowers to finance renewable § ll.12(h)—3: May an intermediate have as their primary purpose any of the energy, energy-efficient, or water small institution that is not subject to activities included in the definition of conservation equipment or projects that HMDA reporting have home mortgage ‘‘community development.’’ support the development, rehabilitation, loans considered as community § ll.12(h)—5: The regulation improvement, or maintenance of development loans? Similarly, may an indicates that community development affordable housing or community intermediate small institution have includes ‘‘activities that revitalize or facilities, such as a health clinic that small business and small farm loans stabilize low- or moderate-income provides services for low- or moderate- and consumer loans considered as geographies.’’ Do all loans in a low- to income individuals. For example, the community development loans? moderate-income geography have a benefit to low- or moderate-income A3. Yes. In instances where stabilizing effect? individuals may result in either a intermediate small institutions are not A5. No. Some loans may provide only reduction in a tenant’s utility cost or the required to report HMDA or small indirect or short-term benefits to low- or cost of providing utilities to common business or small farm loans, these moderate-income individuals in a low- areas in an affordable housing loans may be considered, at the or moderate-income geography. These development. Further, a renewable institution’s option, as community loans are not considered to have a energy facility may be located on-site or development loans, provided they meet community development purpose. For example, a loan for upper-income off-site, so long as the benefit from the the regulatory definition of ‘‘community energy generated is provided to an housing in a low- or moderate-income development.’’ If small business or affordable housing project or a area is not considered to have a small farm loan data have been reported community facility that has a community development purpose to the Agencies to preserve the option community development purpose. simply because of the indirect benefit to to be evaluated as a large institution, but The rehabilitation and construction of low- or moderate-income persons from the institution ultimately chooses to be affordable housing or community construction jobs or the increase in the evaluated under the intermediate small facilities, referred to above, may include local tax base that supports enhanced institution examination standards, then the abatement or remediation of, or services to low- and moderate-income the institution would continue to have other actions to correct, environmental area residents. On the other hand, a loan hazards, such as lead-based paint, the option to have such loans for an anchor business in a low- or asbestos, mold, or radon that are present considered as community development moderate-income area (or a nearby area) in the housing, facilities, or site. loans. However, if the institution opts to that employs or serves residents of the § ll.12(h)—2: If a retail institution be evaluated under the lending, area and, thus, stabilizes the area, may that is not required to report under the investment, and service tests applicable be considered to have a community Home Mortgage Disclosure Act (HMDA) to large institutions, it may not choose development purpose. For example, in a makes affordable home mortgage loans to have home mortgage, small business, low-income area, a loan for a pharmacy that would be HMDA-reportable home small farm, or consumer loans that employs and serves residents of the mortgage loans if it were a reporting considered as community development area promotes community development. institution, or if a small institution that loans. § ll.12(h)—6: Must there be some is not required to collect and report loan Loans other than multifamily immediate or direct benefit to the data under the CRA makes small dwelling loans may not be considered institution’s assessment area(s) to business and small farm loans and under both the lending test and the satisfy the regulations’ requirement that consumer loans that would be collected community development test for qualified investments and community and/or reported if the institution were a intermediate small institutions. Thus, if development loans or services benefit an large institution, may the institution an institution elects to have certain institution’s assessment area(s) or a have these loans considered as loans considered under the community broader statewide or regional area that community development loans? development test, those loans may not includes the institution’s assessment A2. No. Although small institutions also be considered under the lending area(s)? are not required to report or collect test, and would be excluded from the A6. No. The regulations recognize that information on small business and small lending test analysis. community development organizations farm loans and consumer loans, and Intermediate small institutions may and programs are efficient and effective some institutions are not required to choose individual loans within their ways for institutions to promote report information about their home portfolio for community development community development. These mortgage loans under HMDA, if these consideration. Examiners will evaluate organizations and programs often institutions are retail institutions, the an intermediate small institution’s operate on a statewide or even Agencies will consider in their CRA community development activities multistate basis. Therefore, an evaluations the institutions’ originations within the context of the responsiveness institution’s activity is considered a and purchases of loans that would have of the activity to the community community development loan or service been collected or reported as small development needs of the institution’s or a qualified investment if it supports business, small farm, consumer or home assessment area(s). an organization or activity that covers mortgage loans, had the institution been § ll.12(h)—4: Do secured credit an area that is larger than, but includes, a collecting and reporting institution cards or other credit card programs the institution’s assessment area(s). The under the CRA or the HMDA. Therefore, targeted to low- or moderate-income institution’s assessment area(s) need not these loans will not be considered as individuals qualify as community receive an immediate or direct benefit community development loans, unless development loans? from the institution’s participation in
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the organization or activity, provided majority of the entire activity’s benefits prepared to demonstrate the activities’ that the purpose, mandate, or function or dollar value, then the activity may qualifications. of the organization or activity includes still be considered to possess the § ll.12(i) Community Development serving geographies or individuals requisite primary purpose, and the Service located within the institution’s institution may receive CRA assessment area(s). consideration for the entire activity, if § ll.12(i)—1: In addition to meeting In addition, a retail institution will (1) the express, bona fide intent of the the definition of ‘‘community receive consideration for certain other activity, as stated, for example, in a development’’ in the regulation, community development activities. prospectus, loan proposal, or community development services must These activities must benefit community action plan, is primarily one also be related to the provision of geographies or individuals located or more of the enumerated community financial services. What is meant by somewhere within a broader statewide development purposes; (2) the activity ‘‘provision of financial services’’? or regional area that includes the is specifically structured (given any A1. Providing financial services institution’s assessment area(s). relevant market or legal constraints or means providing services of the type Examiners will consider these activities performance context factors) to achieve generally provided by the financial even if they will not benefit the the expressed community development services industry. Providing financial institution’s assessment area(s), as long purpose; and (3) the activity services often involves informing as the institution has been responsive to accomplishes, or is reasonably certain to community members about how to get community development needs and accomplish, the community or use credit or otherwise providing opportunities in its assessment area(s). development purpose involved. credit services or information to the § ll.12(h)—7: What is meant by the Generally, a loan, investment, or community. For example, service on the term ‘‘regional area’’? service will be determined to have a board of directors of an organization A7. A ‘‘regional area’’ may be an ‘‘primary purpose’’ of community that promotes credit availability or intrastate area or a multistate area that development only if it meets the criteria finances affordable housing is related to includes the financial institution’s described above. However, an activity the provision of financial services. assessment area(s). Regional areas involving the provision of affordable Providing technical assistance about typically have some geographic, housing also may be deemed to have a financial services to community-based demographic, and/or economic ‘‘primary purpose’’ of community groups, local or tribal government interdependencies and may conform to development in certain other limited agencies, or intermediaries that help to commonly accepted delineations, such circumstances in which these criteria meet the credit needs of low- and as ‘‘the tri-county area’’ or the ‘‘mid- have not been met. Specifically, moderate-income individuals or small Atlantic states.’’ Regions are often activities related to the provision of businesses and farms is also providing defined by the geographic scope and mixed-income housing, such as in financial services. By contrast, activities specific purpose of a community connection with a development that has that do not take advantage of the development organization or initiative. a mixed-income housing component or employees’ financial expertise, such as § ll.12(h)—8: What is meant by the an affordable housing set-aside required neighborhood cleanups, do not involve term ‘‘primary purpose’’ as that term is by Federal, state, or local government, the provision of financial services. used to define what constitutes a also would be eligible for consideration § ll.12(i)—2: Are personal community development loan, a as an activity that has a ‘‘primary charitable activities provided by an qualified investment, or a community purpose’’ of community development at institution’s employees or directors development service? the election of the institution. In such outside the ordinary course of their A8. A loan, investment, or service has cases, an institution may receive pro employment considered community as its primary purpose community rata consideration for the portion of development services? development when it is designed for the such activities that helps to provide A2. No. Services must be provided as express purpose of revitalizing or affordable housing to low- or moderate- a representative of the institution. For stabilizing low- or moderate-income income individuals. For example, if an example, if a financial institution’s areas, designated disaster areas, or institution makes a $10 million loan to director, on her own time and not as a underserved or distressed finance a mixed-income housing representative of the institution, nonmetropolitan middle-income areas, development in which 10 percent of the volunteers one evening a week at a local providing affordable housing for, or units will be set aside as affordable community development corporation’s community services targeted to, low- or housing for low- and moderate-income financial counseling program, the moderate-income persons, or promoting individuals, the institution may elect to institution may not consider this economic development by financing treat $1 million of such loan as a activity a community development small businesses or farms that meet the community development loan. In other service. requirements set forth in 12 CFR ll words, the pro rata dollar amount of the § ll.12(i)—3: What are examples of .12(g). To determine whether an activity total activity will be based on the community development services? is designed for an express community percentage of units set-aside for A3. Examples of community development purpose, the agencies affordable housing for low- or moderate- development services include, but are apply one of two approaches. First, if a income individuals. not limited to, the following: majority of the dollars or beneficiaries of The fact that an activity provides • Providing technical assistance on the activity are identifiable to one or indirect or short-term benefits to low- or financial matters to nonprofit, tribal, or more of the enumerated community moderate-income persons does not government organizations serving low- development purposes, then the activity make the activity community and moderate-income housing or will be considered to possess the development, nor does the mere economic revitalization and requisite primary purpose. presence of such indirect or short-term development needs; Alternatively, where the measurable benefits constitute a primary purpose of • Providing technical assistance on portion of any benefit bestowed or community development. Financial financial matters to small businesses or dollars applied to the community institutions that want examiners to community development organizations, development purpose is less than a consider certain activities should be including organizations and individuals
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who apply for loans or grants under the home purchase or home improvement (HMDA–LAR), even if they fund the Federal Home Loan Banks’ (FHLB) loans are consumer loans if they are loans. May an institution receive any Affordable Housing Program; extended to one or more individuals for consideration under CRA for its home • Lending employees to provide household, family, or other personal mortgage loan brokerage activities? financial services for organizations expenditures. A2. Yes. A financial institution that facilitating affordable housing § ll.12(j)—2: May a home equity funds home mortgage loans but construction and rehabilitation or line of credit be considered a ‘‘consumer immediately assigns the loans to the development of affordable housing; loan’’ even if part of the line is for home lender that made the credit decisions • Providing credit counseling, home- improvement purposes? may present information about these buyer and home maintenance A2. If the predominant purpose of the loans to examiners for consideration counseling, financial planning or other line is home improvement, the line may under the lending test as ‘‘other loan financial services education to promote only be reported under HMDA and may data.’’ Under Regulation C, the broker community development and affordable not be considered a consumer loan. institution does not record the loans on housing, including credit counseling to However, the full amount of the line its HMDA–LAR because it does not assist low- or moderate-income may be considered a ‘‘consumer loan’’ if make the credit decisions, even if it borrowers in avoiding foreclosure on its predominant purpose is for funds the loans. An institution electing their homes; household, family, or other personal to have these home mortgage loans • Establishing school savings expenditures, and to a lesser extent considered must maintain information programs or developing or teaching home improvement, and the full amount about all of the home mortgage loans financial education or literacy curricula of the line has not been reported under that it has funded in this way. for low- or moderate-income HMDA. This is the case even though Examiners will consider these other individuals; and there may be ‘‘double counting’’ because loan data using the same criteria by • Providing foreclosure prevention part of the line may also have been which home mortgage loans originated programs to low- or moderate-income reported under HMDA. or purchased by an institution are ll homeowners who are facing foreclosure § .12(j)—3: How should an evaluated. institution collect or report information on their primary residence with the Institutions that do not provide on loans the proceeds of which will be objective of providing affordable, funding but merely take applications used for multiple purposes? sustainable, long-term loan and provide settlement services for modifications and restructurings. A3. If an institution makes a single loan or provides a line of credit to a another lender that makes the credit Examples of technical assistance decisions will receive consideration for activities that are related to the customer to be used for both consumer and small business purposes, consistent this service as a retail banking service. provision of financial services and that Examiners will consider an institution’s might be provided to community with the instructions for the Consolidated Reports of Condition and mortgage brokerage services when development organizations include evaluating the range of services • serving on the board of directors; Income (Call Report), the institution • should determine the major provided to low-, moderate-, middle- serving on a loan review committee; and upper-income geographies and the • developing loan application and (predominant) component of the loan or degree to which the services are tailored underwriting standards; the credit line and collect or report the to meet the needs of those geographies. • developing loan-processing entire loan or credit line in accordance Alternatively, an institution’s mortgage systems; with the regulation’s specifications for • developing secondary market that loan type. brokerage service may be considered a community development service if the vehicles or programs; § ll.12(l) Home Mortgage Loan • assisting in marketing financial primary purpose of the service is services, including development of § ll.12(l)—1: Does the term ‘‘home community development. An institution advertising and promotions, mortgage loan’’ include loans other than wishing to have its mortgage brokerage publications, workshops and ‘‘home purchase loans’’? service considered as a community conferences; A1. Yes. ‘‘Home mortgage loan’’ development service must provide • furnishing financial services includes ‘‘home improvement loan,’’ sufficient information to substantiate training for staff and management; ‘‘home purchase loan,’’ and that its primary purpose is community • contributing accounting/ ‘‘refinancing,’’ as defined in the HMDA development and to establish the extent bookkeeping services; regulation, Regulation C, 12 CFR part of the services provided. • assisting in fund raising, including 1003. This definition also includes § ll.12(m) Income Level soliciting or arranging investments; and multifamily (five-or-more families) • providing services reflecting a dwelling loans, and loans for the § ll.12(m)—1: Where do institutions financial institution’s employees’ areas purchase of manufactured homes. See find income level data for geographies of expertise at the institution, such as also Q&A § ll.22(a)(2)–7. and individuals? human resources, information § ll.12(l)—2: Some financial A1. The median family income (MFI) technology, and legal services. institutions broker home mortgage levels for geographies, i.e., census tracts, Refer to Q&A § ll.24(a)—1 for loans. They typically take the borrower’s are calculated using income data from information about how retail services application and perform other the U.S. Census Bureau’s American are evaluated under the large institution settlement activities; however, they do Community Survey (ACS) and service test. not make the credit decision. The broker geographic definitions from the Office of institutions may also initially fund these Management and Budget (OMB), and are § ll.12(j) Consumer Loan mortgage loans, then immediately updated approximately every five years. § ll.12(j)—1: Are home equity loans assign them to another lender. Because Geographic income data, along with considered ‘‘consumer loans’’? the broker institution does not make the detailed information about the FFIEC’s A1. Home equity loans made for credit decision, under Regulation C calculation of geographic MFI data, are purposes other than home purchase, (HMDA), they do not record the loans on available on the FFIEC Web site at home improvement, or refinancing their HMDA loan application registers http://www.ffiec.gov/cra.htm.
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The income levels for individuals are • Does the lending test or the investments. However, FHLB member calculated annually by the FFIEC using community development test present a institutions may receive CRA geographic definitions from the OMB, more accurate picture of the consideration as a community income data from the ACS, and the institution’s CRA performance? development service for technical Consumer Price Index from the § ll.12(n)—3: Do ‘‘niche assistance they provide on behalf of Congressional Budget Office. Individual institutions’’ qualify as limited purpose applicants and recipients of funding MFI data for metropolitan statistical (or wholesale) institutions? from the FHLB’s Affordable Housing areas (MSA) and statewide A3. Generally, no. Institutions that are Program. See Q&A § ll.12(i)–3. nonmetropolitan areas, along with in the business of lending to the public, § ll.12(t)—4: What are examples of detailed information about the FFIEC’s but specialize in certain types of retail qualified investments? calculation of individual MFI data, are loans (for example, home mortgage or A4. Examples of qualified available on the FFIEC Web site at small business loans) to certain types of investments include, but are not limited http://www.ffiec.gov/cra.htm. borrowers (for example, to high-end to, investments, grants, deposits, or income level customers or to shares in or to: § ll.12(n) Limited Purpose Institution corporations or partnerships of licensed • Financial intermediaries (including § ll.12(n)—1: What constitutes a professional practitioners) (‘‘niche CDFIs, New Markets Tax Credit-eligible ‘‘narrow product line’’ in the definition institutions’’) generally would not Community Development Entities, of ‘‘limited purpose institution’’? qualify as limited purpose (or CDCs, minority- and women-owned A1. An institution offers a narrow wholesale) institutions. financial institutions, community loan product line by limiting its lending § ll.12(t) Qualified Investment funds, and low-income or community activities to a product line other than a development credit unions) that § ll.12(t)—1: Does the CRA traditional retail product line required primarily lend or facilitate lending in regulation provide authority for to be evaluated under the lending test low- and moderate-income areas or to institutions to make investments? (i.e., home mortgage, small business, low- and moderate-income individuals A1. No. The CRA regulation does not and small farm loans). Thus, an in order to promote community provide authority for institutions to institution engaged only in making development, such as a CDFI that make investments that are not otherwise credit card or motor vehicle loans offers promotes economic development on an a narrow product line, while an allowed by Federal law. § ll.12(t)—2: Are mortgage-backed Indian reservation; institution limiting its lending activities • Organizations engaged in affordable to home mortgages is not offering a securities or municipal bonds ‘‘qualified investments’’? housing rehabilitation and construction, narrow product line. including multifamily rental housing; ll A2. As a general rule, mortgage- § .12(n)—2: What factors will the • Organizations, including, for Agencies consider to determine whether backed securities and municipal bonds are not qualified investments because example, SBICs, specialized SBICs, and an institution that, if limited purpose, Rural Business Investment Companies makes loans outside a narrow product they do not have as their primary purpose community development, as (RBIC) that promote economic line, or, if wholesale, engages in retail development by financing small lending, will lose its limited purpose or defined in the CRA regulations. Nonetheless, mortgage-backed securities businesses; wholesale designation because of too • or municipal bonds designed primarily Community development venture much other lending? capital companies that promote A2. Wholesale institutions may to finance community development economic development by financing engage in some retail lending without generally are qualified investments. small businesses; losing their designation if this activity is Municipal bonds or other securities • Facilities that promote community incidental and done on an with a primary purpose of community development by providing community accommodation basis. Similarly, limited development need not be housing- services for low- and moderate-income purpose institutions continue to meet related. For example, a bond to fund a individuals, such as youth programs, the narrow product line requirement if community facility or park or to provide homeless centers, soup kitchens, health they provide other types of loans on an sewage services as part of a plan to care facilities, battered women’s centers, infrequent basis. In reviewing other redevelop a low-income neighborhood and alcohol and drug recovery centers; lending activities by these institutions, is a qualified investment. Certain • Projects eligible for low-income the Agencies will consider the following municipal bonds in underserved nonmetropolitan middle-income housing tax credits; factors: • • Is the retail lending provided as an geographies may also be qualified State and municipal obligations, incident to the institution’s wholesale investments. See Q&A § ll such as revenue bonds, that specifically lending? .12(g)(4)(iii)–4. Housing-related bonds support affordable housing or other • Are the retail loans provided as an or securities must primarily address community development; • accommodation to the institution’s affordable housing (including Not-for-profit organizations serving wholesale customers? multifamily rental housing) needs of low- and moderate-income housing or • Are the other types of loans made low- or moderate-income individuals in other community development needs, only infrequently to the limited purpose order to qualify. See also Q&A § ll such as counseling for credit, home- institution’s customers? .23(b)–2. ownership, home maintenance, and • Does only an insignificant portion § ll.12(t)—3: Are FHLB stocks or other financial literacy programs; and of the institution’s total assets and unpaid dividends and membership • Organizations supporting activities income result from the other lending? reserves with the Federal Reserve Banks essential to the capacity of low- and • How significant a role does the ‘‘qualified investments’’? moderate-income individuals or institution play in providing that type(s) A3. No. FHLB stocks or unpaid geographies to utilize credit or to of loan(s) in the institution’s assessment dividends, and membership reserves sustain economic development, such as, area(s)? with the Federal Reserve Banks do not for example, day care operations and job • Does the institution hold itself out have a sufficient connection to training programs or workforce as offering that type(s) of loan(s)? community development to be qualified development programs that enable low-
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or moderate-income individuals to responsive to area community Consumer Price Index. More work. development needs. specifically, the dollar thresholds will See also Q&As § ll.12(g)(4)(ii)—2; § ll.12(t)—9: How do examiners be adjusted annually based on the year- § ll.12(g)(4)(iii)–3; § ll.12(g)(4)(iii)– evaluate loans or investments to to-year change in the average of the 4. organizations that, in turn, invest in Consumer Price Index for Urban Wage § ll.12(t)—5: Will an institution instruments that do not have a Earners and Clerical Workers, not receive consideration for charitable community development purpose, and seasonally adjusted for each 12-month contributions as ‘‘qualified use only the income, or a portion of the period ending in November, with investments’’? income, from those investments to rounding to the nearest million. Any A5. Yes, provided they have as their support their community development changes in the asset size thresholds will primary purpose community purpose? be published in the Federal Register. development as defined in the A9. Examiners will give quantitative Historical and current asset-size regulations. A charitable contribution, consideration for the dollar amount of threshold information may be found on whether in cash or an in-kind funds that benefit an organization or the FFIEC’s Web site at http:// contribution of property, is included in activity that has a primary purpose of www.ffiec.gov/cra. community development. If an the term ‘‘grant.’’ A qualified investment § ll.12(v) Small Business Loan is not disqualified because an institution invests in (or lends to) an ll institution receives favorable treatment organization that, in turn, invests those § .12(v)—1: Are loans to nonprofit for it (for example, as a tax deduction funds in instruments that do not have as organizations considered small business loans or are they considered community or credit) under the Internal Revenue their primary purpose community development loans? Code. development, such as Treasury A1. To be considered a small business ll securities, and uses only the income, or § .12(t)—6: An institution makes loan, a loan must meet the definition of or participates in a community a portion of the income, from those investments to support the ‘‘loans to small businesses’’ in the development loan. The institution instructions in the Call Report. In provided the loan at below-market organization’s community development purposes, the Agencies will consider general, a loan to a nonprofit interest rates or ‘‘bought down’’ the organization, for business or farm interest rate to the borrower. Is the lost only the amount of the investment income used to benefit the organization purposes, where the loan is secured by income resulting from the lower interest nonfarm nonresidential property and rate or buy-down a qualified or activity that has a community development purpose for CRA purposes. the original amount of the loan is $1 investment? million or less, if a business loan, or A6. No. The Agencies will, however, Examiners will, however, provide consideration for such instruments $500,000 or less, if a farm loan, would consider the responsiveness, be reported in the Call Report as a small innovativeness, and complexity of the when the organization invests solely as a means of securing capital for business or small farm loan. If a loan to community development loan within a nonprofit organization is reportable as the bounds of safe and sound banking leveraging purposes, securing additional financing, or in order to generate a a small business or small farm loan, it practices. cannot also be considered as a § ll.12(t)—7: Will the Agencies return with minimal risk until funds can be deployed toward the originally community development loan, except consider as a qualified investment the by a wholesale or limited purpose wages or other compensation of an intended community development activity. The organization must express institution. Loans to nonprofit employee or director who provides organizations that are not small business assistance to a community development a bona fide intent to deploy the funds from investments and loans in a manner or small farm loans for Call Report organization on behalf of the purposes may be considered as institution? that primarily serves a community development purpose in order for the community development loans if they A7. No. However, the Agencies will meet the regulatory definition of consider donated labor of employees or institution to receive consideration under the applicable test. ‘‘community development.’’ directors of a financial institution as a § ll.12(v)—2: Are loans secured by community development service if the § ll.12(u) Small Institution commercial real estate considered small activity meets the regulatory definition § ll.12(u)—1: How are Federal and business loans? of ‘‘community development service.’’ state branch assets of a foreign bank A2. Yes, depending on their principal § ll.12(t)—8: When evaluating a calculated for purposes of the CRA? amount. Small business loans include qualified investment, what A1. A Federal or state branch of a loans secured by ‘‘nonfarm consideration will be given for prior- foreign bank is considered a small nonresidential properties,’’ as defined in period investments? institution if the Federal or state branch the Call Report, in amounts of $1 A8. When evaluating an institution’s has assets less than the asset threshold million or less. qualified investment record, examiners delineated in 12 CFR ll.12(u)(1) for § ll.12(v)—3: Are loans secured by will consider investments that were small institutions. nonfarm residential real estate to made prior to the current examination, finance small businesses ‘‘small but that are still outstanding. Qualitative § ll.12(u)(2) Small Institution business loans’’? factors will affect the weight given to Adjustment A3. Typically not. Loans secured by both current period and outstanding § ll.12(u)(2)—1: How often will the nonfarm residential real estate that are prior-period qualified investments. For asset size thresholds for small used to finance small businesses are not example, a prior-period outstanding institutions and intermediate small included as ‘‘small business’’ loans for investment with a multi-year impact institutions be changed, and how will Call Report purposes unless the security that addresses assessment area these adjustments be communicated? interest in the nonfarm residential real community development needs may A1. The asset size thresholds for estate is taken only as an abundance of receive more consideration than a ‘‘small institutions’’ and ‘‘intermediate caution. (See Call Report Glossary current period investment of a small institutions’’ will be adjusted definition of ‘‘Loan Secured by Real comparable amount that is less annually based on changes to the Estate.’’) The Agencies recognize that
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many small businesses are financed by A2. No. Examiners will consider the Examiners evaluate the loans that would not have been made or responsiveness to credit and community responsiveness of an institution’s would have been made on less favorable development needs, as well as the activities to credit and community terms had they not been secured by innovativeness and complexity, if development needs in light of the residential real estate. If these loans applicable, of an institution’s institution’s performance context. That promote community development, as community development lending, is, examiners consider the institution’s defined in the regulation, they may be qualified investments, and community capacity, its business strategy, the needs considered as community development development services. These criteria of the community, and the opportunities loans. Otherwise, at an institution’s include consideration of the degree to for lending, investments, and services in option, the institution may collect and which they serve as a catalyst for other the community. To inform their maintain data separately concerning community development activities. The assessment, examiners may consider these loans and request that the data be criteria are designed to add a qualitative information about credit and considered in its CRA evaluation as element to the evaluation of an community development needs and ‘‘Other Secured Lines/Loans for institution’s performance. opportunities from many sources, Purposes of Small Business.’’ See also (‘‘Innovativeness’’ and ‘‘complexity’’ are including: Q&A § ll.22(a)(2)–7. not factors in the community • demographic and other information § ll.12(v)—4: Are credit cards development test applicable to compiled by local, state, and Federal issued to small businesses considered intermediate small institutions.) government entities; ‘‘small business loans’’? § ll.21(a)—3: ‘‘Responsiveness’’ to • public comments received by the A4. Credit cards issued to a small credit and community development Agency, for example, in response to its business or to individuals to be used, needs is either a criterion or otherwise publication of its planned examination with the institution’s knowledge, as a consideration in all of the schedule; business accounts are small business performance tests. How do examiners • information from community loans if they meet the definitional evaluate whether a financial institution leaders or organizations; requirements in the Call Report has been ‘‘responsive’’ to credit and • studies and reports from academic instructions. community development needs? institutions and other research bodies; A3. There are three important factors • consumer complaint information; § ll.12(x) Wholesale Institution that examiners consider when and • § ll.12(x)—1: What factors will the evaluating responsiveness: quantity, any relevant information provided Agencies consider in determining quality, and performance context. to examiners by the financial institution whether an institution is in the business Examiners evaluate the volume and type that is maintained by the institution in of extending home mortgage, small of an institution’s activities, i.e., retail its ordinary course of business. business, small farm, or consumer loans and community development loans and Responsiveness to community to retail customers? services and qualified investments, as a development needs and opportunities in A1. The Agencies will consider first step in evaluating the institution’s an institution’s assessment area(s) is whether: responsiveness to credit and community also a key consideration when an • The institution holds itself out to development needs. In addition, an institution plans to engage in the retail public as providing such assessment of ‘‘responsiveness’’ community development activities that loans. encompasses the qualitative aspects of benefit areas outside of its assessment • the institution’s revenues from performance, including the effectiveness area(s). Q&A § ll.12(h)–6 states that extending such loans are significant of the activities. For example, some an institution will receive consideration when compared to its overall community development activities for activities that benefit geographies or operations, including off-balance sheet require specialized expertise or effort on individuals located somewhere within a activities. the part of the institution or provide a broader statewide or regional area that A wholesale institution may make benefit to the community that would not includes the institution’s assessment some retail loans without losing its otherwise be made available. In some area(s) even if they will not benefit the wholesale designation as described cases, a smaller loan may have more institution’s assessment area(s), as long above in Q&A § ll.12(n)–2. benefit to a community than a larger as the institution has been responsive to § ll.21—Performance Tests, loan. In other words, when evaluated community development needs and Standards, and Ratings, in General qualitatively, some activities are more opportunities in its assessment area(s). responsive than others. Activities are When considering whether an § ll.21(a) Performance Tests and more responsive if they are successful in institution has been responsive to Standards meeting identified credit and community development needs and § ll.21(a)—1: How will examiners community development needs. For opportunities in its assessment area(s), apply the performance criteria? example, investing in a community examiners will consider all of the A1. Examiners will apply the development organization that institution’s community development performance criteria reasonably and specializes in originating home activities in its assessment area(s). fairly, in accord with the regulations, mortgage loans to low- or moderate- Examiners will also consider as the examination procedures, and this income individuals would be responsive to assessment area needs guidance. In doing so, examiners will considered more responsive than an community development activities that disregard efforts by an institution to investment of the same amount in a support an organization or activity that manipulate business operations or single-family mortgage-backed security covers an area that is larger than, but present information in an artificial light in which the majority of the loans are includes, the institution’s assessment that does not accurately reflect an to low- or moderate-income borrowers. area(s). This is true if the purpose, institution’s overall record of lending Although both of these activities may mandate, or function of the organization performance. receive consideration as a qualified or activity includes serving geographies § ll.21(a)—2: Are all community investment, the former example would or individuals located within the development activities weighted equally be considered to be more responsive institution’s assessment area(s), even by examiners? than the latter. though the institution’s assessment
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area(s) did not receive an immediate or A1. The performance context is a § ll.21(b)(4) Institutional Capacity direct benefit from the institution’s broad range of economic, demographic, and Constraints participation in the organization or and institution- and community-specific § ll.21(b)(4)—1: Will examiners activity. For example, suppose an information that an examiner reviews to consider factors outside of an institution were to invest in a statewide understand the context in which an institution’s control that prevent it from community development fund that was institution’s record of performance engaging in certain activities? organized with the purpose of providing should be evaluated. The Agencies will A1. Yes. Examiners will take into community development loans provide examiners with some of this account statutory and supervisory throughout the state in which the information. The performance context is limitations on an institution’s ability to institution is located. Examiners would not a formal assessment of community engage in any lending, investment, and consider this investment when credit needs. service activities. For example, a savings evaluating the institution’s association that has made few or no responsiveness to community § ll.21(b)(2) Information Maintained qualified investments due to its limited development needs and opportunities in by the Institution or Obtained From investment authority may still receive a its assessment area(s) even if the fund Community Contacts low satisfactory rating under the had not provided a loan within the ll § .21(b)(2)—1: Will examiners investment test if it has a strong lending institution’s assessment area(s). consider performance context record. § ll.21(a)—4: What is meant by information provided by institutions? ‘‘innovativeness’’? A1. Yes. An institution may provide § ll.21(b)(5) Institution’s Past A4. ‘‘Innovativeness’’ is one of several examiners with any information it Performance and the Performance of qualitative considerations under the deems relevant, including information Similarly Situated Lenders lending, investment, and service tests. on the lending, investment, and service The community development test for § ll.21(b)(5)—1: Can an opportunities in its assessment area(s). institution’s assigned rating be wholesale and limited purpose This information may include data on institutions similarly considers adversely affected by poor past the business opportunities addressed by performance? ‘‘innovative’’ loans, investments, and lenders not subject to the CRA. services in the evaluation of A1. Yes. The Agencies will consider Institutions are not required, however, performance. Under the CRA an institution’s past performance in its to prepare a formal needs assessment. If regulations, all innovative practices or overall evaluation. For example, an an institution provides information to activities will be considered when an institution that received a rating of examiners, the Agencies will not expect institution implements meaningful ‘‘needs to improve’’ in the past may information other than what the improvements to products, services, or receive a rating of ‘‘substantial institution normally would develop to delivery systems that respond more noncompliance’’ if its performance has prepare a business plan or to identify effectively to customer and community not improved. potential markets and customers, needs, particularly those segments § ll.21(b)(5)—2: How will including low- and moderate-income enumerated in the definition of examiners consider the performance of community development. persons and geographies in its similarly situated lenders? Institutions should not innovate assessment area(s). The Agencies will A2. The performance context section simply to meet this criterion of the not evaluate an institution’s efforts to of the regulation permits the applicable test, particularly if, for ascertain community credit needs or performance of similarly situated example, existing products, services, or rate an institution on the quality of any lenders to be considered, for example, delivery systems effectively address the information it provides. as one of a number of considerations in needs of all segments of the community. § ll.21(b)(2)—2: Will examiners evaluating the geographic distribution of See Q&A § ll.28–1. Innovative conduct community contact interviews an institution’s loans to low-, moderate- activities are especially meaningful as part of the examination process? , middle-, and upper-income when they emphasize serving, for A2. Yes. Examiners will consider geographies. This analysis, as well as example, low- or moderate-income information obtained from interviews other analyses, may be used, for consumers or distressed or underserved with local community, civic, and example, where groups of contiguous nonmetropolitan middle-income government leaders. These interviews geographies within an institution’s geographies in new or more effective provide examiners with knowledge assessment area(s) exhibit abnormally ways. Innovativeness may also include regarding the local community, its low penetration. In this regard, the products, services, or delivery systems economic base, and community performance of similarly situated already present in the assessment area development initiatives. To ensure that lenders may be analyzed if such an by institutions that are not leaders in information from local leaders is analysis would provide accurate insight innovation—due, for example, to the considered—particularly in areas where into the institution’s lack of lack of available financial resources or the number of potential contacts may be performance in those areas. The technological expertise—when they limited—examiners may use regulation does not require the use of a subsequently introduce those products, information obtained through an specific type of analysis under these services, or delivery systems to their interview with a single community circumstances. Moreover, no ratio low- or moderate-income customers or contact for examinations of more than developed from any type of analysis is segments of consumers or markets not one institution in a given market. In linked to any lending test rating. addition, the Agencies may consider previously served. Practices that cease § ll.21(f) Activities in Cooperation to be innovative may still receive information obtained from interviews conducted by other Agency staff and by With Minority- or Women-Owned qualitative consideration for being Financial Institutions and Low-Income flexible, complex, or responsive. the other Agencies. In order to augment contacts previously used by the Credit Unions § ll.21(b) Performance Context Agencies and foster a wider array of § ll.21(f)—1: The CRA provides § ll.21(b)—1: What is the contacts, the Agencies may share that, in assessing the CRA performance performance context? community contact information. of nonminority- and non-women-owned
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(majority-owned) financial institutions, credit needs of an institution’s viewed less favorably by examiners than examiners may consider as a factor assessment area(s) and that may one that does. However, if consumer capital investments, loan participations, warrant favorable consideration as loans constitute a substantial majority of and other ventures undertaken by the activities that are responsive to the the institution’s business, the Agencies institutions in cooperation with needs of the institution’s assessment will evaluate them even if the minority- or women-owned financial area(s)? institution does not so elect. The institutions and low-income credit A1. Credit needs vary from Agencies interpret ‘‘substantial unions (MWLI), provided that these community to community. However, majority’’ to be so significant a portion activities help meet the credit needs of there are some lending activities that are of the institution’s lending activity by local communities in which the MWLIs likely to be responsive in helping to number and dollar volume of loans that are chartered. Must such activities also meet the credit needs of many the lending test evaluation would not benefit the majority-owned financial communities. These activities include meaningfully reflect its lending institution’s assessment area(s)? • providing loan programs that performance if consumer loans were A1. No. Although the regulations include a financial education excluded. generally provide that an institution’s component about how to avoid lending § ll.22(a)(2) Loan Originations and CRA activities will be evaluated for the activities that may be abusive or Purchases/Other Loan Data extent to which they benefit the otherwise unsuitable; institution’s assessment area(s) or a • establishing loan programs that § ll.22(a)(2)—1: How are lending broader statewide or regional area that provide small, unsecured consumer commitments (such as letters of credit) includes the institution’s assessment loans in a safe and sound manner (i.e., evaluated under the regulation? area(s), the Agencies apply a broader based on the borrower’s ability to repay) A1. The Agencies consider lending geographic criterion when evaluating and with reasonable terms; commitments (such as letters of credit) • capital investments, loan participations, offering lending programs, which only at the option of the institution, and other ventures undertaken by that feature reporting to consumer reporting regardless of examination type. institution in cooperation with MWLIs, agencies, that transition borrowers from Commitments must be legally binding as provided by the CRA. Thus, such loans with higher interest rates and fees between an institution and a borrower activities will be favorably considered (based on credit risk) to lower-cost in order to be considered. Information in the CRA performance evaluation of loans, consistent with safe and sound about lending commitments will be the institution (as loans, investments, or lending practices. Reporting to used by examiners to enhance their services, as appropriate), even if the consumer reporting agencies allows understanding of an institution’s MWLIs are not located in, or such borrowers accessing these programs the performance, but will be evaluated activities do not benefit, the assessment opportunity to improve their credit separately from the loans. area(s) of the majority-owned institution histories and thereby improve their § ll.22(a)(2)—2: Will examiners or the broader statewide or regional area access to competitive credit products; review application data as part of the and that includes its assessment area(s). The • lending test? activities must, however, help meet the establishing loan programs with the A2. Application activity is not a credit needs of the local communities in objective of providing affordable, performance criterion of the lending which the MWLIs are chartered. The sustainable, long-term relief, for test. However, examiners may consider impact of a majority-owned institution’s example, through loan refinancings, this information in the performance activities in cooperation with MWLIs on restructures, or modifications, to context analysis because this the majority-owned institution’s CRA homeowners who are facing foreclosure information may give examiners insight rating will be determined in conjunction on their primary residences. on, for example, the demand for loans. Examiners may consider favorably with its overall performance in its ll such lending activities, which have § .22(a)(2)—3: May a financial assessment area(s). institution receive consideration under Examples of activities undertaken by features augmenting the success and effectiveness of the small, intermediate CRA for home mortgage loan a majority-owned financial institution modification, extension, and in cooperation with MWLIs that would small, or large institution’s lending programs. consolidation agreements (MECA), in receive CRA consideration may include which it obtains home mortgage loans • making a deposit or capital § ll.22(a)(1) Types of Loans from other institutions without actually investment; Considered purchasing or refinancing the home • purchasing a participation in a loan; § ll.22(a)(1)—1: If a large retail mortgage loans, as those terms have • loaning an officer or providing institution is not required to collect and been interpreted under CRA and HMDA, other technical expertise to assist an report home mortgage data under the as implemented by 12 CFR part 1003? MWLI in improving its lending policies HMDA, will the Agencies still evaluate A3. Yes. In some states, MECAs, and practices; • the institution’s home mortgage lending which are not considered loan providing financial support to refinancings because the existing loan enable an MWLI to partner with schools performance? A1. Yes. The Agencies will sample obligations are not satisfied and or universities to offer financial literacy the institution’s home mortgage loan replaced, are common. Although these education to members of its local files in order to assess its performance transactions are not considered to be community; or • under the lending test criteria. purchases or refinancings, as those providing free or discounted data § ll.22(a)(1)—2: When will terms have been interpreted under CRA, processing systems, or office facilities to examiners consider consumer loans as they do achieve the same results. A aid an MWLI in serving its customers. part of an institution’s CRA evaluation? small, intermediate small, or large § ll.22—Lending Test A2. Consumer loans will be evaluated institution may present information if the institution so elects and has about its MECA activities with respect § ll.22(a) Scope of Test collected and maintained the data; an to home mortgages to examiners for § ll.22(a)—1: Are there any types of institution that elects not to have its consideration under the lending test as lending activities that help meet the consumer loans evaluated will not be ‘‘other loan data.’’
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§ ll.22(a)(2)—4: In addition to Report Glossary definition of ‘‘Loan the rating. In evaluating an institution’s MECAs, what are other examples of Secured by Real Estate.’’) If this same lending, examiners will consider ‘‘other loan data’’? loan is refinanced and the new loan is legitimate business reasons for the A4. Other loan data include, for also secured by a one-to-four family allocation of the lending activity. example, residence, but only through an § ll.22(b)(2) & (3) Geographic • loans funded for sale to the abundance of caution, this loan is Distribution and Borrower secondary markets that an institution reported not only as a refinancing under Characteristics has not reported under HMDA; HMDA, but also as a small business loan • unfunded loan commitments and under CRA. (Note that small farm loans § ll.22(b)(2) & (3)—1: How do the letters of credit; are similarly treated.) geographic distribution of loans and the • commercial and consumer leases; It is not anticipated that ‘‘double- distribution of lending by borrower • loans secured by nonfarm reported’’ loans will be so numerous as characteristics interact in the lending residential real estate, not taken as an to affect the typical institution’s CRA test applicable to either large or small abundance of caution, that are used to rating. In the event that an institution institutions? finance small businesses or small farms reports a significant number or amount A1. Examiners generally will consider and that are not reported as small of loans as both home mortgage and both the distribution of an institution’s business/small farm loans or reported small business loans, examiners will loans among geographies of different under HMDA; and consider that overlap in evaluating the income levels, and among borrowers of • an increase to a small business or institution’s performance and generally different income levels and businesses small farm line of credit if the increase will consider the ‘‘double-reported’’ and farms of different sizes. The would cause the total line of credit to loans as small business loans for CRA importance of the borrower distribution exceed $1 million, in the case of a small consideration. criterion, particularly in relation to the business line; or $500,000, in the case The origination of a small business or geographic distribution criterion, will of a small farm line. small farm loan that is secured by a one- depend on the performance context. For § ll.22(a)(2)—5: Do institutions to-four family residence is not example, distribution among borrowers receive consideration for originating or reportable under HMDA, unless the with different income levels may be purchasing loans that are fully purpose of the loan is home purchase or more important in areas without guaranteed? home improvement. Nor is the loan A5. Yes. For all examination types, identifiable geographies of different reported as a small business or small examiners evaluate an institution’s income categories. On the other hand, farm loan if the security interest is not record of helping to meet the credit geographic distribution may be more taken merely as an abundance of needs of its assessment area(s) through important in areas with the full range of caution. Any such loan may be provided the origination or purchase of specified geographies of different income to examiners as ‘‘other loan data’’ types of loans. Examiners do not take categories. (‘‘Other Secured Lines/Loans for into account whether or not such loans § ll.22(b)(2) & (3)—2: Must an Purposes of Small Business’’) for are guaranteed. institution lend to all portions of its consideration during a CRA evaluation. § ll.22(a)(2)—6: Do institutions assessment area? See Q&A § ll.12(v)—3. The receive consideration for purchasing A2. The term ‘‘assessment area’’ refinancings of such loans would be loan participations? describes the geographic area within A6. Yes. Examiners will consider the reported under HMDA. which the agencies assess how well an amount of loan participations purchased § ll.22(b) Performance Criteria institution, regardless of examination when evaluating an institution’s record type, has met the specific performance ll of helping to meet the credit needs of its § .22(b)(1) Lending Activity tests and standards in the rule. The assessment area(s) through the § ll.22(b)(1)—1: How will the Agencies do not expect that simply origination or purchase of specified Agencies apply the lending activity because a census tract is within an types of loans, regardless of examination criterion to discourage an institution institution’s assessment area(s), the type. As with other loan purchases, from originating loans that are viewed institution must lend to that census examiners will evaluate whether loan favorably under CRA in the institution tract. Rather the Agencies will be participations purchased by an itself and referring other loans, which concerned with conspicuous gaps in institution, which have been sold and are not viewed as favorably, for loan distribution that are not explained purchased a number of times, artificially origination by an affiliate? by the performance context. Similarly, if inflate CRA performance. See, e.g., Q&A A1. Examiners will review closely an institution delineated the entire § ll.21(a)–1. institutions with (1) a small number and county in which it is located as its § ll.22(a)(2)—7: How are amount of home mortgage loans with an assessment area, but could have refinancings of small business loans, unusually good distribution among low- delineated its assessment area as only a which are secured by a one-to-four and moderate-income areas and low- portion of the county, it will not be family residence and that have been and moderate-income borrowers and (2) penalized for lending only in that reported under HMDA as a refinancing, a policy of referring most, but not all, of portion of the county, so long as that evaluated under CRA? their home mortgage loans to affiliated portion does not reflect illegal A7. A loan of $1 million or less with institutions. If an institution is making discrimination or arbitrarily exclude a business purpose that is secured by a loans mostly to low- and moderate- low- or moderate-income geographies. one-to-four family residence is income individuals and areas and The capacity and constraints of an considered a small business loan for referring the rest of the loan applicants institution, its business decisions about CRA purposes only if the security to an affiliate for the purpose of how it can best help to meet the needs interest in the residential property was receiving a favorable CRA rating, of its assessment area(s), including those taken as an abundance of caution and examiners may conclude that the of low- and moderate-income where the terms have not been made institution’s lending activity is not neighborhoods, and other aspects of the more favorable than they would have satisfactory because it has performance context, are all relevant to been in the absence of the lien. (See Call inappropriately attempted to influence explain why the institution is serving or
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not serving portions of its assessment examiners could view home mortgage account that the 65 percent project area(s). loans to middle-income individuals in a provides more affordable housing for § ll.22(b)(2) & (3)—3: Will low-income geography very differently. more people per dollar expended. examiners take into account loans made For example, if the loans are for homes Under 12 CFR ll.22(b)(4), the by affiliates when evaluating the or multifamily housing located in an extent of CRA consideration an proportion of an institution’s lending in area for which the local, state, tribal, or institution receives for its community its assessment area(s)? Federal government or a community- development loans should bear a direct A3. Examiners will not take into based development organization has relation to the benefits received by the account loans made by affiliates when developed a revitalization or community and the innovation or determining the proportion of an stabilization plan (such as a Federal complexity of the loans required to institution’s lending in its assessment enterprise community or empowerment accomplish the activity, not simply to area(s), even if the institution elects to zone) that includes attracting mixed- the dollar amount expended on a have its affiliate lending considered in income residents to establish a particular transaction. By applying all the remainder of the lending test stabilized, economically diverse lending test performance criteria, a evaluation. However, examiners may neighborhood, examiners may give more community development loan of a lower consider an institution’s business consideration to such loans, which may dollar amount could meet the credit strategy of conducting lending through be viewed as serving the low- or needs of the institution’s community to an affiliate in order to determine moderate-income community’s needs as a greater extent than a community whether a low proportion of lending in well as serving those of the middle- or development loan with a higher dollar the assessment area(s) should adversely upper-income borrowers. If, on the other amount, but with less innovation, affect the institution’s lending test hand, no such plan exists and there is complexity, or impact on the rating. no other evidence of governmental community. § ll.22(b)(2) & (3)—4: When will support for a revitalization or § ll.22(b)(4)—2: How do examiners examiners consider loans (other than stabilization project in the area and the consider community development loans community development loans) made loans to middle- or upper-income in the evaluation of an institution’s outside an institution’s assessment borrowers significantly disadvantage or record of lending under the lending test area(s)? primarily have the effect of displacing applicable to large institutions? A4. Consideration will be given for low- or moderate-income residents, A2. An institution’s record of making loans to low- and moderate-income examiners may view these loans simply community development loans may persons and small business and farm as home mortgage loans to middle- or have a positive, neutral, or negative loans outside of an institution’s upper-income borrowers who happen to impact on the lending test rating. assessment area(s), provided the reside in a low- or moderate-income Community development lending is one institution has adequately addressed the geography and weigh them accordingly of five performance criteria in the needs of borrowers within its in their evaluation of the institution. lending test criteria and, as such, it is assessment area(s). The Agencies will considered at every examination. As apply this consideration not only to § ll.22(b)(4) Community Development with all lending test criteria, examiners loans made by large retail institutions Lending evaluate an institution’s record of being evaluated under the lending test, § ll.22(b)(4)—1: When evaluating making community development loans but also to loans made by small and an institution’s record of community in the context of an institution’s intermediate small institutions being development lending under the lending business model, the needs of its evaluated under their respective test applicable to large institutions, may community, and the availability of performance standards. Loans to low- an examiner distinguish among community development opportunities and moderate-income persons and small community development loans on the in its assessment area(s) or the broader businesses and farms outside of an basis of the actual amount of the loan statewide or regional area(s) that institution’s assessment area(s), that advances the community includes the assessment area(s). For however, will not compensate for poor development purpose? example, in some cases community lending performance within the A1. Yes. When evaluating the development lending could have either institution’s assessment area(s). institution’s record of community a neutral or negative impact when the § ll.22(b)(2) & (3)—5: Under the development lending under 12 CFR l volume and number of community lending test applicable to small, l.22(b)(4), it is appropriate to give development loans are not adequate, intermediate small, or large institutions, greater weight to the amount of the loan depending on the performance context, how will examiners evaluate home that is targeted to the intended while in other cases, it would have a mortgage loans to middle- or upper- community development purpose. For positive impact when the institution is income individuals in a low- or example, consider two $10 million a leader in community development moderate-income geography? projects (with a total of 100 units each) lending. Additionally, strong A5. Examiners will consider these that have as their express primary performance in retail lending may home mortgage loans under the purpose affordable housing and are compensate for weak performance in performance criteria of the lending test, located in the same community. One of community development lending, and i.e., by number and amount of home these projects sets aside 40 percent of its conversely, strong community mortgage loans, whether they are inside units for low-income residents and the development lending may compensate or outside the financial institution’s other project allocates 65 percent of its for weak retail lending performance. assessment area(s), their geographic units for low-income residents. An distribution, and the income levels of institution would report both loans as § ll.22(b)(5) Innovative or Flexible the borrowers. Examiners will use $10 million community development Lending Practices information regarding the financial loans under the 12 CFR ll.42(b)(2) § ll.22(b)(5)—1: What do examiners institution’s performance context to aggregate reporting obligation. However, consider in evaluating the determine how to evaluate the loans transaction complexity, innovation and innovativeness or flexibility of an under these performance criteria. all other relevant considerations being institution’s lending under the lending Depending on the performance context, equal, an examiner should also take into test applicable to large institutions?
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A1. In evaluating the innovativeness offered in a safe and sound manner, and the five categories of consumer or flexibility of an institution’s lending which includes evaluating an loans (motor vehicle loans, credit card practices (and the complexity and individual’s ability to repay, an loans, home equity loans, other secured innovativeness of its community institution may establish outreach loans, and other unsecured loans). development lending), examiners will initiatives or financial counseling § ll.22(c)(2) Constraints on Affiliate not be limited to reviewing the overall targeted to low- or moderate-income Lending variety and specific terms and individuals or communities. The conditions of the credit product institution’s efforts to encourage the § ll.22(c)(2)(i) No Affiliate May Claim themselves. Examiners also consider availability, awareness, and use of the a Loan Origination or Loan Purchase if whether, and the extent to which, small dollar loan program to meet the Another Institution Claims the Same innovative or flexible terms or products credit needs of low- and moderate- Loan Origination or Purchase augment the success and effectiveness income individuals, in lieu of higher- § ll.22(c)(2)(i)—1: Regardless of of the institution’s community cost credit, should augment the success examination type, how is this constraint development loan programs or, more and effectiveness of the lending on affiliate lending applied? generally, of its loan programs that program. Such loans may be considered A1. This constraint prohibits one address the credit needs of low- or responsive under Q&A § ll.22(a)—1, affiliate from claiming a loan origination moderate-income geographies or and the use of such outreach initiatives or purchase claimed by another affiliate. individuals. Historically, many in conjunction with financial literacy However, an institution can count as a institutions have used innovative and education or linked savings programs purchase a loan originated by an flexible lending practices to customize also may be considered as an innovative affiliate that the institution loans to their customers’ specific needs or flexible practice to the extent that subsequently purchases, or count as an in a safe and sound manner. However, they augment the success and origination a loan later sold to an an innovative or flexible lending effectiveness of the related loan affiliate, provided the same loans are practice is not required in order to program. Such initiatives may receive not sold several times to inflate their obtain a specific CRA rating. See Q&A consideration under other performance value for CRA purposes. For example, § ll.28—1. Examples of lending criteria as well. For example, an practices that are considered innovative assume that two institutions are initiative to partner with a nonprofit affiliated. Institution A originates a loan or flexible include: organization to provide financial • In connection with a community and claims it as a loan origination. counseling that encourages responsible Institution B later purchases the loan. development loan program, an use of credit may, by itself, constitute a institution may establish a technical Institution B may count the loan as a community development service purchased loan. assistance program under which the eligible for consideration under the institution, directly or through third The same institution may not count service test. both the origination and purchase. parties, provides affordable housing • In connection with a mortgage or developers and other loan recipients Thus, for example, if an institution consumer lending program targeted to claims loans made by an affiliated with financial consulting services. Such low- or moderate-income geographies or a technical assistance program may, by mortgage company as loan originations, individuals, consistent with safe and the institution may not also count the itself, constitute a community sound lending practices, an institution development service eligible for loans as purchased loans if it later may establish underwriting standards purchases the loans from its affiliate. consideration under the service test of that utilize alternative credit histories, the CRA regulations. In addition, the See also Q&As § ll.22(c)(2)(ii)—1 and such as utility or rent payments, in an § ll.22(c)(2)(ii)—2. technical assistance may be considered effort to evaluate low- or moderate- as an innovative or flexible practice that income individuals who lack sufficient § ll.22(c)(2)(ii) If an Institution Elects augments the success and effectiveness conventional credit histories and who to Have its Supervisory Agency of the related community development would be denied credit under the Consider Loans Within a Particular loan program. institution’s traditional underwriting Lending Category Made by One or More • In connection with a small business standards. The use of alternative credit of the Institution’s Affiliates in a lending program in a low- or moderate- histories in this manner to demonstrate Particular Assessment Area, the income area and consistent with safe Institution Shall Elect to Have the and sound lending practices, an that consumers have a timely and consistent record of paying their Agency Consider all Loans Within That institution may implement a program Lending Category in That Particular under which, in addition to providing obligations may be considered as an innovative or flexible practice that Assessment Area Made by all of the financing, the institution also contracts Institution’s Affiliates with the small business borrowers. Such augments the success and effectiveness a contracting arrangement would not, of the lending program. § ll.22(c)(2)(ii)—1: Regardless of itself, qualify for CRA consideration. § ll.22(c) Affiliate Lending examination type, how is this constraint However, it may be considered as an on affiliate lending applied? innovative or flexible practice that § ll.22(c)(1) In General A1. This constraint prohibits ‘‘cherry- augments the loan program’s success § ll.22(c)(1)—1: If an institution, picking’’ affiliate loans within any one and effectiveness, and improves the regardless of examination type, elects to category of loans. The constraint program’s ability to serve community have loans by its affiliate(s) considered, requires an institution that elects to development needs by helping to may it elect to have only certain have a particular category of affiliate promote economic development categories of loans considered? lending in a particular assessment area through support of small business A1. Yes. An institution may elect to considered to include all loans of that activities and revitalization or have only a particular category of its type made by all of its affiliates in that stabilization of low- or moderate-income affiliate’s lending considered. The basic particular assessment area. For example, geographies. categories of loans are home mortgage assume that an institution has several • In connection with a small dollar loans, small business loans, small farm affiliates, including a mortgage company loan program with reasonable terms and loans, community development loans, that makes loans in the institution’s
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assessment area. If the institution elects the other hand, asset-backed and debt .22(c)(2)(i), that two affiliates may not to include the mortgage company’s securities that do not represent an both claim the same loan origination or home mortgage loans, it must include equity-type interest in a third party will loan purchase. However, if the financial all of its affiliates’ home mortgage loans not be considered under the lending test institution and the third party are not made in its assessment area. In addition, unless the securities are booked by the affiliates, the third party may receive the institution cannot elect to include purchasing institution as a loan. For consideration for the community only those low- and moderate-income example, if an institution purchases development loans it originates, and the home mortgage loans made by its stock in a CDC that primarily lends in financial institution that invested in the affiliates and not home mortgage loans low- and moderate-income areas or to third party may also receive to middle- and upper-income low- and moderate-income individuals consideration for its pro rata share of the individuals or areas. in order to promote community same community development loans § ll.22(c)(2)(ii)—2: Regardless of development, the institution may claim under 12 CFR ll.22(d). examination type, how is this constraint a pro rata share of the CDC’s loans as applied if an institution’s affiliates are community development loans. The § ll.23—Investment Test also insured depository institutions institution’s pro rata share is based on § ll.23(a) Scope of Test subject to the CRA? its percentage of equity ownership in § ll.23(a)—1: May an institution, A2. Strict application of this the CDC. Q&A § ll.23(b)—1 provides regardless of examination type, receive constraint against ‘‘cherry-picking’’ to information concerning consideration of consideration under the CRA loans of an affiliate that is also an an equity or equity-type investment regulations if it invests indirectly insured depository institution covered under the investment test and both the through a fund, the purpose of which is by the CRA would produce the lending and investment tests. (Note that anomalous result that the other in connection with an intermediate community development, as that is institution would, without its consent, small institution’s CRA performance defined in the CRA regulations? A1. Yes, the direct or indirect nature not be able to count its own loans. evaluation, community development of the qualified investment does not Because the Agencies did not intend to loans, including pro rata shares of affect whether an institution will deprive an institution subject to the community development loans, are CRA of receiving consideration for its considered only in the community receive consideration under the CRA own lending, the Agencies read this development test.) regulations because the regulations do constraint slightly differently in cases § ll.22(d)—2: Regardless of not distinguish between ‘‘direct’’ and involving a group of affiliated examination type, how will examiners ‘‘indirect’’ investments. Thus, an institutions, some of which are subject evaluate loans made by consortia or institution’s investment in an equity to the CRA and share the same third parties? fund that, in turn, invests in projects assessment area(s). In those A2. Loans originated or purchased by that, for example, provide affordable circumstances, an institution that elects consortia in which an institution housing to low- and moderate-income to include all of its mortgage affiliate’s participates or by third parties in which individuals, would receive home mortgage loans in its assessment an institution invests will be considered consideration as a qualified investment area would not automatically be only if they qualify as community under the CRA regulations, provided the required to include all home mortgage development loans and will be investment benefits one or more of the loans in its assessment area of another considered only under the community institution’s assessment area(s) or a affiliate institution subject to the CRA. development criterion. However, loans broader statewide or regional area(s) However, all loans of a particular type originated directly on the books of an that includes one or more of the made by any affiliate in the institution’s institution or purchased by the institution’s assessment area(s). assessment area(s) must either be institution are considered to have been Similarly, an institution may receive counted by the lending institution or by made or purchased directly by the consideration for a direct qualified another affiliate institution that is institution, even if the institution investment in a nonprofit organization subject to the CRA. This reading reflects originated or purchased the loans as a that, for example, supports affordable the fact that a holding company may, for result of its participation in a loan housing for low- and moderate-income business reasons, choose to transact consortium. These loans would be individuals in the institution’s different aspects of its business in considered under the lending test or assessment area(s) or a broader different subsidiary institutions. community development test criteria statewide or regional area(s) that However, the method by which loans appropriate to them depending on the includes the institution’s assessment are allocated among the institutions for type of loan and type of examination. area(s). CRA purposes must reflect actual § ll.22(d)—3: In some § ll.23(a)—2: In order to receive business decisions about the allocation circumstances, an institution may invest CRA consideration, what information of banking activities among the in a third party, such as a community may an institution provide that would institutions and should not be designed development bank, that is also an demonstrate that an investment in a solely to enhance their CRA evaluations. insured depository institution and is nationwide fund with a primary purpose thus subject to CRA requirements. If the of community development will directly § ll.22(d) Lending by a Consortium or investing institution requests its or indirectly benefit one or more of the a Third Party supervisory Agency to consider its pro institution’s assessment area(s) or a § ll.22(d)—1: Will equity and rata share of community development broader statewide or regional area that equity-type investments in a third party loans made by the third party, as includes the institution’s assessment receive consideration under the lending allowed under 12 CFR ll.22(d), may area(s)? test? the third party also receive A2. There may be several ways to A1. If an institution has made an consideration for these loans? demonstrate that the institution’s equity or equity-type investment in a A3. Yes, regardless of examination investment in a nationwide fund meets third party, community development type, as long as the financial institution the geographic requirements, and the loans made by the third party may be and the third party are not affiliates. The Agencies will employ appropriate considered under the lending test. On regulations state, at 12 CFR ll flexibility in this regard in reviewing
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information the institution provides that A1. Yes, in some instances the nature CFR ll.23(e), may an examiner reasonably supports this determination. of an activity may make it eligible for distinguish among qualified investments In making this determination, the consideration under more than one of based on how much of the investment Agencies will consider any information the performance tests. For example, actually supports the underlying provided by a financial institution that certain investments and related support community development purpose? reasonably demonstrates that the provided by a large retail institution to A1. Yes. By applying all the criteria, purpose, mandate, or function of the a CDC may be evaluated under the a qualified investment of a lower dollar fund includes serving geographies or lending, investment, and service tests. amount may be weighed more heavily individuals located within the Under the service test, the institution under the investment test than a institution’s assessment area(s) or a may receive consideration for any qualified investment with a higher broader statewide or regional area that community development services that it dollar amount that has fewer qualitative includes the institution’s assessment provides to the CDC, such as service by enhancements. The criteria permit an area(s). Typically, information about an executive of the institution on the examiner to qualitatively weight certain where a fund’s investments are expected CDC’s board of directors. If the investments differently or to make other to be made or targeted will be found in institution makes an investment in the appropriate distinctions when the fund’s prospectus, or other CDC that the CDC uses to make evaluating an institution’s record of documents provided by the fund prior community development loans, the making qualified investments. For to or at the time of the institution’s institution may receive consideration instance, an examiner should take into investment, and the institution, at its under the lending test for its pro rata account that a targeted mortgage-backed option, may provide such share of community development loans security that qualifies as an affordable documentation in connection with its made by the CDC. Alternatively, the housing issue that has only 60 percent CRA evaluation. institution’s investment may be of its face value supported by loans to Nationwide funds are important considered under the investment test, low- or moderate-income borrowers sources of investments in low- and assuming it is a qualified investment. In would not provide as much affordable moderate-income and underserved addition, an institution may elect to housing for low- and moderate-income have a part of its investment considered communities throughout the country individuals as a targeted mortgage- under the lending test and the and can be an efficient vehicle for backed security with 100 percent of its remaining part considered under the institutions in making qualified face value supported by affordable investment test. If the investing investments that help meet community housing loans to low- and moderate- institution opts to have a portion of its development needs. Nationwide funds income borrowers. The examiner should investment evaluated under the lending may be suitable investment describe any differential weighting (or test by claiming its pro rata share of the opportunities, particularly for large other adjustment), and its basis in the CDC’s community development loans, financial institutions with a nationwide Performance Evaluation. See also Q&A the amount of investment considered ll branch footprint. Other financial § .12(t)—8 for a discussion about under the investment test will be offset the qualitative consideration of prior- institutions, including those with a by that portion. Thus, the institution nationwide business focus, may find period investments. would receive consideration under the § ll.23(e)—2: How do examiners such funds to be efficient investment investment test for only the amount of evaluate an institution’s qualified vehicles to help meet community its investment multiplied by the investment in a fund, the primary development needs in their assessment percentage of the CDC’s assets that meet purpose of which is community area(s) or the broader statewide or the definition of a qualified investment. development, as defined in the CRA regional area that includes their § ll.23(b)—2: If home mortgage regulations? assessment area(s). Prior to investing in loans to low- and moderate-income A2. When evaluating qualified such a fund, an institution should borrowers have been considered under investments that benefit an institution’s consider reviewing the fund’s an institution’s lending test, may the assessment area(s) or a broader investment record to see if it is generally institution that originated or purchased statewide or regional area that includes consistent with the institution’s them also receive consideration under its assessment area(s), examiners will investment goals and the geographic the investment test if it subsequently look at the following four performance considerations in the regulations. purchases mortgage-backed securities criteria: Examiners will consider investments in that are primarily or exclusively backed (1) The dollar amount of qualified nationwide funds that benefit the by such loans? investments; institution’s assessment area(s). A2. No. Because the institution (2) The innovativeness or complexity Examiners will also consider received lending test consideration for of qualified investments; investments in nationwide funds that the loans that underlie the securities, (3) The responsiveness of qualified benefit the broader statewide or regional the institution may not also receive investments to credit and community area that includes the institution’s consideration under the investment test development needs; and assessment area(s) consistent with the for its purchase of the securities. Of (4) The degree to which the qualified treatment detailed in Q&A § ll course, an institution may receive investments are not routinely provided .12(h)—6. investment test consideration for by private investors. With respect to the first criterion, § ll.23(b) Exclusion purchases of mortgage-backed securities that are backed by loans to low- and examiners will determine the dollar § ll.23(b)—1: Even though the moderate-income individuals as long as amount of qualified investments by regulations state that an activity that is the securities are not backed primarily relying on the figures recorded by the considered under the lending or service or exclusively by loans that the same institution according to generally tests cannot also be considered under institution originated or purchased. accepted accounting principles (GAAP). the investment test, may parts of an Although institutions may exercise a activity be considered under one test § ll.23(e) Performance Criteria range of investment strategies, including and other parts be considered under § ll.23(e)—1: When applying the short-term investments, long-term another test? four performance criteria of 12 investments, investments that are
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immediately funded, and investments consider the extent to which the extent of financial institutions’ with a binding, up-front commitment institution provides such services and involvement in IDAs and the products that are funded over a period of time, their innovativeness and responsiveness and services they offer in connection institutions making the same dollar to community needs. Examples of with the accounts will vary. Thus, amount of investments over the same community development services are subject to 12 CFR ll.23(b), examiners number of years, all other performance listed in Q&A § ll.12(i)—3. Examiners evaluate the actual services and criteria being equal, would receive the will consider any information provided products provided by an institution in same level of consideration. Examiners by the institution that demonstrates connection with IDA programs as one or will include both new and outstanding community development services more of the following: community investments in this determination. The benefit low- or moderate-income development services, retail banking dollar amount of qualified investments individuals or are responsive to services, qualified investments, home also will include the dollar amount of community development needs. mortgage loans, small business loans, legally binding commitments recorded § ll.24(d) Performance Criteria— consumer loans, or community by the institution according to GAAP. Retail Banking Services development loans. See, e.g., Q&A The extent to which qualified § ll.12(i)—3. investments receive consideration, § ll.24(d)—1: How do examiners Note that all types of institutions may however, depends on how examiners evaluate the availability and participate in IDA programs. Their IDA evaluate the investments under the effectiveness of an institution’s systems activities are evaluated under the remaining three performance criteria— for delivering retail banking services? performance criteria of the type of innovativeness and complexity, A1. Convenient access to full service examination applicable to the particular responsiveness, and degree to which the branches within a community is an institution. investment is not routinely provided by important factor in determining the private investors. Examiners also will availability of credit and non-credit § ll.24(d)(3) Availability and consider factors relevant to the services. Therefore, the service test Effectiveness of Alternative Systems for institution’s CRA performance context, performance standards place primary Delivering Retail Banking Services such as the effect of outstanding long- emphasis on full service branches while § ll.24(d)(3)—1: How do examiners term qualified investments, the pay-in still considering alternative systems. evaluate alternative systems for schedule, and the amount of any cash The principal focus is on an delivering retail banking services? call, on the capacity of the institution to institution’s current distribution of A1. There are a number of alternative make new investments. branches and its record of opening and systems used by financial institutions to closing branches, particularly branches § ll.24—Service Test deliver retail banking services to located in low- or moderate-income customers. Non-branch delivery § ll.24(a) Scope of Test geographies or primarily serving low- or systems, such as ATMs, online and moderate-income individuals. However, § ll.24(a)—1: How do examiners mobile banking, and other means by an institution is not required to expand evaluate retail banking services and which institutions provide services to its branch network or operate community development services under their customers evolve over time. No unprofitable branches. Under the the large institution service test? matter the means of delivery, examiners A1. Retail banking services and service test, alternative systems for evaluate the extent to which the community development services are delivering retail banking services are alternative delivery systems are the two components of the service test considered only to the extent that they available and effective in providing and are both important in evaluating a are effective alternatives in providing financial services to low- and moderate- large institution’s performance. In needed services to low- and moderate- income geographies and individuals. evaluating retail banking services, income areas and individuals. For example, a system may be § ll.24(d)—2: How do examiners examiners consider the availability and determined to be effective based on the evaluate an institution’s activities in effectiveness of an institution’s systems accessibility of the system to low- and connection with Individual for delivering banking services, moderate-income geographies and particularly in low- and moderate- Development Accounts (IDA)? individuals. To determine whether a A2. Although there is no standard income geographies and to low- and financial institution’s alternative IDA program, IDAs typically are deposit moderate income individuals; the range delivery system is an available and accounts targeted to low- and moderate- of services provided in low-, moderate- effective means of delivering retail income families that are designed to , middle-, and upper-income banking services in low- and moderate- help them accumulate savings for geographies; and the degree to which income geographies and to low- and education or job-training, down- the services are tailored to meet the moderate-income individuals, payment and closing costs on a new needs of those geographies. Examples of examiners may consider a variety of home, or start-up capital for a small retail banking services that improve factors, including business. Once participants have access to financial services, or decrease • the ease of access, whether physical successfully funded an IDA, their costs, for low- or moderate-income or virtual; personal IDA savings are matched by a individuals include • the cost to consumers, as compared • low-cost deposit accounts; public or private entity. Financial with the institution’s other delivery • electronic benefit transfer accounts institution participation in IDA systems; and point of sale terminal systems; programs comes in a variety of forms, • the range of services delivered; • individual development accounts; including providing retail banking • the ease of use; • free or low-cost government, services to IDA accountholders, • the rate of adoption and use; and payroll, or other check cashing services; providing matching dollars or operating • the reliability of the system. and funds to an IDA program, designing or Examiners will consider any • reasonably priced international implementing IDA programs, providing information an institution maintains remittance services. consumer financial education to IDA and provides to examiners In evaluating community accountholders or prospective demonstrating that the institution’s development services, examiners accountholders, or other means. The alternative delivery systems are
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available to, and used by, low- or maintain regarding services offered provides community development moderate-income individuals, such as through alternative delivery systems services as well as the innovativeness data on customer usage or transactions. (see Q&A § ll.24(d)(3)—1) and and responsiveness of such services. § ll.24(d)(3)—2: Are debit cards through collaborations with Examiners consider both quantitative considered under the service test as an government, community, educational or and qualitative aspects of community alternative delivery system? employer organizations to offer or development services during the A2. By themselves, no. However, if expand the range of services or access evaluation. Examiners assess debit cards are a part of a larger to services, particularly designed to quantitative factors to determine the combination of products, such as a meet the needs of their assessment extent to which community comprehensive electronic banking area(s), including low- and moderate- development services are offered and service, that allows an institution to income communities will also be used. The review is not limited to a deliver needed services to low- and considered. Examiners will also review single quantitative factor. For example, moderate-income areas and individuals information provided by the public quantitative factors may include the in its community, the overall delivery through comments or community number of system that includes the debit card contacts. • low- or moderate-income feature would be considered an participants; alternative delivery system. § ll.24(e) Performance Criteria— • organizations served; Community Development Services • sessions sponsored; or § ll.24(d)(4) Range of Services § ll.24(e)—1: Under what • financial institution staff hours Provided in Geographies of Different conditions may an institution receive devoted. Incomes consideration for community Examiners will also consider § ll.24(d)(4)—1: How do examiners development services offered by qualitative factors by assessing the evaluate the range of services provided affiliates or third parties? degree to which community in low-, moderate-, middle-, and upper- A1. At an institution’s option, the development services are innovative or income geographies and the degree to Agencies will consider services responsive to community needs. See which those services are tailored to meet performed by an affiliate or by a third Q&As § ll.21(a)—4 and § ll.21(a)— the needs of those geographies? party on the institution’s behalf under 3. These performance criteria recognize A1. Examiners review both the service test if the services provided that community development services information from the institution’s public enable the institution to help meet the sometimes require special expertise and file and other information provided credit needs of its community. Indirect effort on the part of the institution and related to the range of services offered services that enhance an institution’s provide benefit to the community that and how they are tailored to meet the ability to deliver credit products or would not otherwise be possible. Such particular needs of low- and moderate- deposit services within its community an assessment will depend on the income geographies. Examiners always and that can be quantified may be impact of a particular activity on review the information that institutions considered under the service test, if community needs and the benefits must maintain in their public files: A those services have not been considered received by a community. See Q&A list of services generally offered at their already under the lending or investment § ll.28(b)—1. For example, a financial branches, including their hours of test. See Q&A § ll.23(b)–1. For institution employee’s unique expertise operation; available loan and deposit example, an institution that contracts and service on the board of a products; transaction fees, as well as with a community organization to community organization may descriptions, where applicable, of provide home ownership counseling to demonstrate these qualitative factors material differences in the availability low- and moderate-income home buyers when the employee’s ongoing or cost of services at particular as part of the institution’s mortgage engagement significantly improves the branches. See 12 CFR ll.43(a)(5). The program may receive consideration for products, services or operations of the information provided by the financial that indirect service under the service community development organization. institution to identify the types of test. In contrast, donations to a Examiners will consider any relevant services offered and any differences in community organization that offers information provided by the institution services among its branches in different financial services to low- or moderate- and from third parties that documents geographies may indicate how its income individuals may be considered the extent, innovativeness, and services (including, where appropriate, under the investment test, but would responsiveness of community business hours) are tailored to the not also be eligible for consideration development services. convenience and needs of its assessment under the service test. Services § ll.25—Community Development area(s), particularly low- or moderate- performed by an affiliate will be treated Test for Wholesale or Limited Purpose income geographies or low- or the same as affiliate loans and Institutions moderate-income individuals. See 12 investments made in the institution’s CFR ll, appendix A, section (b)(3). assessment area and may be considered § ll.25(a) Scope of Test Examiners also review any other if the service is not claimed by any other § ll.25(a)—1: How can certain information provided by the institution, institution. See 12 CFR ll.22(c) and credit card banks help to meet the credit such as data regarding the costs and ll.23(c). needs of their communities without features of loan and deposit products, § ll.24(e)—2: In evaluating losing their exemption from the account usage and retention, geographic community development services, what definition of ‘‘bank’’ in the Bank location of accountholders, the quantitative and qualitative factors do Holding Company Act (BHCA), as availability of information in languages examiners review? amended by the Competitive Equality other than English, and any other A2. The community development Banking Act of 1987 (CEBA)? relevant information demonstrating that services criteria are important factors in A1. Although the BHCA restricts its services are tailored to meet the the evaluation of a large institution’s institutions known as CEBA credit card needs of its customers in the various service test performance. According to banks to credit card operations, a CEBA geographies in its assessment area(s). the regulation, the Agencies evaluate the credit card bank can engage in Any information that institutions may extent to which the financial institution community development activities
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without losing its exemption under the loans and community development institution examination procedures. The BHCA. A CEBA credit card bank could services, by that institution nationwide. regulation does not specify an provide community development In determining whether an institution additional lag period between becoming services and investments without has adequately addressed the needs of an intermediate small institution and engaging in operations other than credit its assessment area(s), examiners will being examined as an intermediate card operations. For example, the bank consider qualified investments that small institution, as it does for large could provide credit card counseling, or benefit a broader statewide or regional institutions, because an intermediate the financial expertise of its executives, area that includes the institution’s small institution is not subject to CRA free of charge, to community assessment area(s). data collection and reporting development organizations. In addition, requirements. Institutions should ll a CEBA credit card bank could make § .25(f) Community Development contact their primary regulator for qualified investments, as long as the Performance Rating information on examination schedules. investments meet the guidelines for § ll.25(f)—1: Must a wholesale or § ll.26(b) Lending Test passive and noncontrolling investments limited purpose institution engage in all provided in the BHCA and the Board’s three categories of community § ll.26(b)—1: May examiners Regulation Y. Finally, although a CEBA development activities (lending, consider, under one or more of the credit card bank cannot make any loans investment, and service) to perform well performance criteria of the small other than credit card loans, under 12 under the community development test? institution performance standards, CFR ll.25(d)(2) (community A1. No, a wholesale or limited lending-related activities, such as development test—indirect activities), purpose institution may perform well community development loans and the bank could elect to have part of its under the community development test lending-related qualified investments, qualified passive and noncontrolling by engaging in one or more of these when evaluating a small institution? investments in a third-party lending activities. A1. Yes. Examiners can consider consortium considered as community ‘‘lending-related activities,’’ including development lending, provided that the § ll.26—Small Institution community development loans and consortium’s loans otherwise meet the Performance Standards lending-related qualified investments, requirements for community § ll.26—1: When evaluating a small when evaluating the first four development lending. When assessing a or intermediate small institution’s performance criteria of the small CEBA credit card bank’s CRA performance, will examiners consider, institution performance test. Although performance under the community at the institution’s request, retail and lending-related activities are specifically development test, examiners will take community development loans mentioned in the regulation in into account the bank’s performance originated or purchased by affiliates, connection with only the first three context. In particular, examiners will qualified investments made by affiliates, criteria (i.e., loan-to-deposit ratio, consider the legal constraints imposed or community development services percentage of loans in the institution’s by the BHCA on the bank’s activities, as provided by affiliates? assessment area(s), and lending to part of the bank’s performance context A1. Yes. However, a small institution borrowers of different incomes and in 12 CFR ll.21(b)(4). that elects to have examiners consider businesses of different sizes), examiners can also consider these activities when § ll.25(d) Indirect Activities affiliate activities must maintain sufficient information that the they evaluate the fourth criteria— § ll.25(d)—1: How are investments examiners may evaluate these activities geographic distribution of the in third-party community development under the appropriate performance institution’s loans. organizations considered under the criteria and ensure that the activities are Although lending-related community community development test? not claimed by another institution. The development activities are evaluated A1. Similar to the lending test for constraints applicable to affiliate under the community development test retail institutions, investments in third- activities claimed by large institutions applicable to intermediate small party community development also apply to small and intermediate institutions, these activities may also organizations may be considered as small institutions. See Q&As addressing augment the loan-to-deposit ratio ll qualified investments or as community 12 CFR ll.22(c)(2) and related analysis (12 CFR .26(b)(1)) and the development loans or both (provided guidance provided to large institutions percentage of loans in the intermediate there is no double counting), at the regarding affiliate activities. Examiners small institution’s assessment area(s) ll institution’s option, as described above will not include affiliate lending in analysis (12 CFR .26(b)(2)), if in the discussion regarding 12 CFR ll calculating the percentage of loans and, appropriate. § ll.26(b)—2: What is meant by ‘‘as .22(d) and ll.23(b). as appropriate, other lending-related appropriate’’ when referring to the fact activities located in an institution’s § ll.25(e) Benefit to Assessment that lending-related activities will be assessment area(s). Area(s) considered, ‘‘as appropriate,’’ under the § ll.25(e)—1: How do examiners § ll.26(a) Performance Criteria various small institution performance evaluate a wholesale or limited purpose criteria? § ll.26(a)(2) Intermediate Small institution’s qualified investment in a A2. ‘‘As appropriate’’ means that Institutions fund that invests in projects nationwide lending-related activities will be and which has a primary purpose of § ll.26(a)(2)—1: When is an considered when it is necessary to community development, as that is institution examined as an intermediate determine whether an institution meets defined in the regulations? small institution? or exceeds the standards for a A1. If examiners find that a wholesale A1. When a small institution has met satisfactory rating. Examiners will also or limited purpose institution has the intermediate small institution asset consider other lending-related activities adequately addressed the needs of its threshold delineated in 12 CFR ll at an institution’s request, provided they assessment area(s), they will give .12(u)(1) for two consecutive calendar have not also been considered under the consideration to qualified investments, year-ends, the institution may be community development test applicable as well as community development examined under the intermediate small to intermediate small institutions.
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§ ll.26(b)—3: When evaluating a A2. No specific ratio is reasonable in considered in light of the performance small institution’s lending performance, every circumstance, and each small context. For example, a small institution will examiners consider, at the institution’s ratio is evaluated in light of is not required to lend evenly institution’s request, community information from the performance throughout its assessment area(s) or in development loans originated or context, including the institution’s any particular geography. However, in purchased by a consortium in which the capacity to lend, demographic and order to meet the standards for institution participates or by a third economic factors present in the satisfactory performance under this party in which the institution has assessment area(s), and the lending criterion, conspicuous gaps in a small invested? opportunities available in the institution’s loan distribution must be A3. Yes. However, a small institution assessment area(s). If a small adequately explained by performance that elects to have examiners consider institution’s loan-to-deposit ratio context factors such as lending community development loans appears unreasonable after considering opportunities in the institution’s originated or purchased by a consortium this information, lending performance assessment area(s), the institution’s or third party must maintain sufficient may still be satisfactory under this product offerings and business strategy, information on its share of the criterion taking into consideration the and institutional capacity and community development loans so that number and the dollar volume of loans constraints. In addition, it may be the examiners may evaluate these loans sold to the secondary market or the impracticable to review the geographic under the small institution performance number and amount and innovativeness distribution of the lending of an criteria. or complexity of community institution with very few § ll.26(b)—4: Under the small development loans and lending-related demographically distinct geographies institution lending test performance qualified investments. within an assessment area. If sufficient standards, will examiners consider both § ll.26(b)(1)—3: If an institution information on the income levels of loan originations and purchases? makes a large number of loans off-shore, individual borrowers or the revenues or A4. Yes, consistent with the other will examiners segregate the domestic sizes of business borrowers is not assessment methods in the regulation, loan-to-deposit ratio from the foreign available, examiners may use loan size examiners will consider both loans loan-to-deposit ratio? as a proxy for estimating borrower originated and purchased by the A3. No. Examiners will look at the characteristics, where appropriate. institution. Likewise, examiners may institution’s net loan-to-deposit ratio for § ll.26(c) Intermediate Small consider any other loan data the small the whole institution, without any Institution Community Development institution chooses to provide, adjustments. Test including data on loans outstanding, § ll.26(b)(2) Percentage of Lending commitments, and letters of credit. § ll.26(c)—1: How will the § ll.26(b)—5: Under the small Within Assessment Area(s) community development test be applied institution lending test performance § ll.26(b)(2)—1: Must a small flexibly for intermediate small standards, how will qualified institution have a majority of its lending institutions? investments be considered for purposes in its assessment area(s) to receive a A1. Generally, intermediate small of determining whether a small satisfactory performance rating? institutions engage in a combination of institution receives a satisfactory CRA A1. No. The percentage of loans and, community development loans, rating? as appropriate, other lending-related qualified investments, and community A5. The small institution lending test activities located in the institution’s development services. An institution performance standards focus on lending assessment area(s) is but one of the may not simply ignore one or more of and other lending-related activities. performance criteria upon which small these categories of community Therefore, examiners will consider only institutions are evaluated. If the development, nor do the regulations lending-related qualified investments percentage of loans and other lending- prescribe a required threshold for for the purpose of determining whether related activities in an institution’s community development loans, a small institution that is not an assessment area(s) is less than a qualified investments, and community intermediate small institution receives a majority, then the institution does not development services. Instead, based on satisfactory CRA rating. meet the standards for satisfactory the institution’s assessment of performance only under this criterion. community development needs in its ll § .26(b)(1) Loan-to-Deposit Ratio The effect on the overall performance assessment area(s), it may engage in § ll.26(b)(1)—1: How is the loan-to- rating of the institution, however, is different categories of community deposit ratio calculated? considered in light of the performance development activities that are A1. A small institution’s loan-to- context, including information responsive to those needs and deposit ratio is calculated in the same regarding economic conditions; loan consistent with the institution’s manner that the Uniform Bank demand; the institution’s size, financial capacity. Performance Report (UBPR) determines condition, business strategies, and An intermediate small institution has the ratio. It is calculated by dividing the branching network; and other aspects of the flexibility to allocate its resources institution’s net loans and leases by its the institution’s lending record. among community development loans, total deposits. The ratio is found in the qualified investments, and community Liquidity and Investment Portfolio § ll.26(b)(3) & (4) Distribution of development services in amounts that it section of the UBPR. Examiners will use Lending Within Assessment Area(s) by reasonably determines are most this ratio to calculate an average since Borrower Income and Geographic responsive to community development the last examination by adding the Location needs and opportunities. Appropriate quarterly loan-to-deposit ratios and § ll.26(b)(3) & (4)—1: How will a levels of each of these activities would dividing the total by the number of small institution’s performance be depend on the capacity and business quarters. assessed under these lending strategy of the institution, community § ll.26(b)(1)—2: How is the distribution criteria? needs, and number and types of ‘‘reasonableness’’ of a loan-to-deposit A1. Distribution of loans, like other opportunities for community ratio evaluated? small institution performance criteria, is development.
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§ ll.26(c)(3) Community Development how the institution’s activities respond assessment area(s) that display income Services to those needs. variation. An institution with a high An evaluation of the degree of § ll.26(c)(3)—1: What will loan-to-deposit ratio and a high responsiveness considers the following examiners consider when evaluating the percentage of loans in its assessment factors: The volume, mix, and provision of community development area(s), but with only a reasonable qualitative aspects of community services by an intermediate small penetration of borrowers at all income development loans, qualified institution? levels or a reasonable dispersion of investments, and community A1. In addition to the examples listed loans throughout geographies of development services. Consideration of in Q&A § ll.12(i)–3, examiners will differing income levels in its assessment the qualitative aspects of performance consider retail banking services as area(s), generally will not be rated recognizes that community ‘‘outstanding’’ based only on its lending community development services if development activities sometimes they provide benefit to low- or performance. However, the institution’s require special expertise or effort on the performance in making qualified moderate-income individuals. Examples part of the institution or provide a include: investments and its performance in • benefit to the community that would not providing branches and other services Low-cost deposit accounts; otherwise be made available. (However, • electronic benefit transfer accounts and delivery systems that enhance ‘‘innovativeness’’ and ‘‘complexity’’— credit availability in its assessment and point of sale terminal systems; factors examiners consider when • individual development accounts; area(s) may augment the institution’s • evaluating a large institution under the satisfactory rating to the extent that it free or low-cost government, lending, investment, and service tests— payroll, or other check cashing services; may be rated ‘‘outstanding.’’ are not criteria in the intermediate small § ll.26(d)—2: Will a small and institutions’ community development • reasonably priced international institution’s qualified investments, test.) In some cases, a smaller loan may community development loans, and remittance services. have more qualitative benefit to a In addition, providing services to low- community development services be community than a larger loan. Activities considered if they do not directly benefit and moderate-income individuals are considered particularly responsive its assessment area(s)? through branches and other facilities to community development needs if located in low- and moderate-income, they benefit low- and moderate-income A2. Yes. These activities are eligible designated disaster, or distressed or individuals in low- or moderate-income for consideration if they benefit a underserved nonmetropolitan middle- geographies, designated disaster areas, broader statewide or regional area that income areas is considered. Generally, or distressed or underserved includes a small institution’s the presence of branches located in low- nonmetropolitan middle-income assessment area(s), as discussed more and moderate-income geographies will geographies. Activities are also fully in Q&As § ll.12(h)–6 and § ll help to demonstrate the availability of considered particularly responsive to .12(h)–7. banking services to low- and moderate- community development needs if they § ll.27—Strategic Plan income individuals. benefit low- or moderate-income § ll.27(c) Plans in General § ll.26(c)(4) Responsiveness to geographies. Community Development Needs § ll.26(d) Performance Rating § ll.27(c)—1: To what extent will the Agencies provide guidance to an § ll.26(c)(4)—1: When evaluating § ll.26(d)—1: How can a small an intermediate small institution’s institution during the development of its institution that is not an intermediate strategic plan? community development record, what small institution achieve an will examiners consider when reviewing ‘‘outstanding’’ performance rating? A1. An institution will have an the responsiveness of community A1. A small institution that is not an opportunity to consult with and provide development lending, qualified intermediate small institution that information to the Agencies on a investments, and community meets each of the standards in the proposed strategic plan. Through this development services to the community lending test for a ‘‘satisfactory’’ rating process, an institution is provided development needs of the area? and exceeds some or all of those guidance on procedures and on the A1. When evaluating an intermediate standards may warrant an information necessary to ensure a small institution’s community ‘‘outstanding’’ performance rating. In complete submission. For example, the development record, examiners will assessing performance at the Agencies will provide guidance on consider not only quantitative measures ‘‘outstanding’’ level, the Agencies whether the level of detail as set out in of performance, such as the number and consider the extent to which the the proposed plan would be sufficient to amount of community development institution exceeds each of the permit Agency evaluation of the plan. loans, qualified investments, and performance standards and, at the However, the Agencies’ guidance during community development services, but institution’s option, its performance in plan development and, particularly, also qualitative aspects of performance. making qualified investments and prior to the public comment period, will In particular, examiners will evaluate providing services that enhance credit not include commenting on the merits the responsiveness of the institution’s availability in its assessment area(s). In of a proposed strategic plan or on the community development activities in some cases, a small institution may adequacy of measurable goals. light of the institution’s capacity, qualify for an ‘‘outstanding’’ § ll.27(c)—2: How will a joint business strategy, the needs of the performance rating solely on the basis of strategic plan be reviewed if the community, and the number and types its lending activities, but only if its affiliates have different primary Federal of opportunities for each type of performance materially exceeds the supervisors? community development activity (its standards for a ‘‘satisfactory’’ rating, A2. The Agencies will coordinate performance context). Examiners also particularly with respect to the review of and action on the joint plan. will consider the results of any penetration of borrowers at all income Each Agency will evaluate the assessment by the institution of levels and the dispersion of loans measurable goals for those affiliates for community development needs, and throughout the geographies in its which it is the primary regulator.
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§ ll.27(f) Plan Content required for a ‘‘satisfactory’’ or regulation. The evaluation of a ‘‘outstanding’’ CRA rating? multistate institution that maintains a § ll.27(f)(1) Measurable Goals A1. No. The performance criterion of domestic branch in two or more states § ll.27(f)(1)—1: How should annual ‘‘innovativeness’’ applies only under the in a multistate metropolitan area will measurable goals be specified in a lending, investment, and service tests include a written evaluation (containing strategic plan? applicable to large institutions and the the same information described above) A1. Annual measurable goals (e.g., community development test applicable and rating of its CRA record of number of loans, dollar amount, to wholesale and limited purpose performance in the multistate geographic location of activity, and institutions. Moreover, even under these metropolitan area. In such cases, the benefit to low- and moderate-income tests, the lack of innovative lending statewide evaluation and rating will be areas or individuals) must be stated practices, innovative or complex adjusted to reflect performance in the with sufficient specificity to permit the qualified investments, or innovative portion of the state not within the public and the Agencies to quantify community development services alone multistate MSA. what performance will be expected. will not result in a ‘‘needs to improve’’ § ll.28(a)—2: How are institutions However, institutions are provided CRA rating. However, under these tests, that operate within only a single state flexibility in specifying goals. For the use of innovative lending practices, assigned a rating? example, an institution may provide innovative or complex qualified A2. An institution that operates ranges of lending amounts in different investments, and innovative community within only a single state (‘‘single-state categories of loans. Measurable goals development services may augment the institution’’) will be assigned a rating of may also be linked to funding consideration given to an institution’s its CRA record based on its performance requirements of certain public programs performance under the quantitative within that state. In assigning this or indexed to other external factors as criteria of the regulations, resulting in a rating, the Agencies will separately long as these mechanisms provide a higher performance rating. See also present a single-state institution’s quantifiable standard. Q&A § ll.26(c)(4)–1 for a discussion performance for each metropolitan area about responsiveness to community in which the institution maintains one § ll.27(g) Plan Approval development needs under the or more domestic branch offices. This § ll.27(g)(2) Public Participation community development test applicable separate presentation will contain to intermediate small institutions. conclusions, supported by facts and § ll.27(g)(2)—1: How will the public data, on the single-state institution’s § ll.28(a) Ratings in General receive notice of a proposed strategic performance under the performance plan? § ll.28(a)—1: How are institutions tests and standards in the regulation. A1. An institution submitting a with domestic branches in more than § ll.28(a)—3: How do the Agencies strategic plan for approval by the one state assigned a rating? weight performance under the lending, Agencies is required to solicit public A1. The evaluation of an institution investment, and service tests for large comment on the plan for a period of 30 that maintains domestic branches in retail institutions? days after publishing notice of the plan more than one state (‘‘multistate A3. A rating of ‘‘outstanding,’’ ‘‘high at least once in a newspaper of general institution’’) will include a written satisfactory,’’ ‘‘low satisfactory,’’ ‘‘needs circulation. The notice should be evaluation and rating of its CRA record to improve,’’ or ‘‘substantial sufficiently prominent to attract public of performance as a whole and in each noncompliance,’’ based on a judgment attention and should make clear that state in which it has a domestic branch. supported by facts and data, will be public comment is desired. An The written evaluation will contain a assigned under each performance test. institution may, in addition, provide separate presentation on a multistate Points will then be assigned to each notice to the public in any other manner institution’s performance for each MSA rating as described in the first matrix set it chooses. and the nonmetropolitan area within forth below. A large retail institution’s § ll.28—Assigned Ratings each state, if it maintains one or more overall rating under the lending, domestic branch offices in these areas. investment and service tests will then § ll.28—1: Are innovative lending This separate presentation will contain be calculated in accordance with the practices, innovative or complex conclusions, supported by facts and second matrix set forth below, which qualified investments, and innovative data, on performance under the incorporates the rating principles in the community development services performance tests and standards in the regulation.
POINTS ASSIGNED FOR PERFORMANCE UNDER LENDING, INVESTMENT AND SERVICE TESTS
Lending Service Investment
Outstanding ...... 12 6 6 High Satisfactory ...... 9 4 4 Low Satisfactory ...... 6 3 3 Needs to Improve ...... 3 1 1 Substantial Noncompliance ...... 0 0 0
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COMPOSITE RATING POINT prohibited basis, in violation, for supplement its record of performance REQUIREMENTS example, of the Fair Housing Act or the and to respond to the substantive issues [Add points from three tests] Equal Credit Opportunity Act (as raised in the application proceeding. implemented by Regulation B). § ll.29(a)—2: What consideration is Rating Total points Examples of other illegal credit given to an institution’s commitments practices inconsistent with helping to for future action in reviewing an Outstanding ...... 20 or over. meet community credit needs include application by those Agencies that Satisfactory ...... 11 through 19. violations of consider such commitments? Needs to Improve ...... 5 through 10. • the Truth in Lending Act regarding A2. Commitments for future action Substantial Noncompliance 0 through 4. rescission of certain mortgage are not viewed as part of the CRA record Note: There is one exception to the Com- transactions and regarding disclosures of performance. In general, institutions posite Rating matrix. An institution may not re- and certain loan term restrictions in cannot use commitments made in the ceive a rating of ‘‘satisfactory’’ unless it re- connection with credit transactions that applications process to overcome a ceives at least ‘‘low satisfactory’’ on the lend- ing test. Therefore, the total points are capped are subject to the Home Ownership and seriously deficient record of CRA at three times the lending test score. Equity Protection Act; performance. However, commitments • the Real Estate Settlement for improvements in an institution’s ll § .28(b) Lending, Investment, and Procedures Act regarding the giving and performance may be appropriate to Service Test Ratings accepting of referral fees, unearned fees, address specific weaknesses in an § ll.28(b)—1: How is performance or kickbacks in connection with certain otherwise satisfactory record or to under the quantitative and qualitative mortgage transactions; and address CRA performance when a performance criteria weighed when • the Federal Trade Commission Act financially troubled institution is being examiners assign a CRA rating? regarding unfair or deceptive acts or acquired. A1. The lending, investment, and practices. Examiners will determine the ll service tests each contain a number of effect of evidence of illegal credit § .29(b) Interested Parties performance criteria designed to practices as set forth in examination § ll.29(b)—1: What consideration is measure whether an institution is procedures and § ll.28(c) of the given to comments from interested effectively helping to meet the credit regulation. parties in reviewing an application? needs of its entire community, Violations of other provisions of the A1. Materials relating to CRA including low- and moderate-income consumer protection laws generally will performance received during the neighborhoods, in a safe and sound not adversely affect an institution’s CRA application process can provide manner. Some of these performance rating, but may warrant the inclusion of valuable information. Written criteria are quantitative, such as number comments in an institution’s comments, which may express either and amount, and others, such as the use performance evaluation. These support for or opposition to the of innovative or flexible lending comments may address the institution’s application, are made a part of the practices, the innovativeness or policies, procedures, training programs, record in accordance with the Agencies’ complexity of qualified investments, and internal assessment efforts. procedures, and are carefully and the innovativeness and considered in making the Agencies’ § ll.29—Effect of CRA Performance responsiveness of community decisions. Comments should be on Applications development services, are qualitative. supported by facts about the applicant’s The performance criteria that deal with § ll.29(a) CRA Performance performance and should be as specific these qualitative aspects of performance as possible in explaining the basis for recognize that these loans, qualified § ll.29(a)—1: What weight is given to an institution’s CRA performance supporting or opposing the application. investments, and community These comments must be submitted development services sometimes require examination in reviewing an application? within the time limits provided under special expertise and effort on the part the Agencies’ procedures. of the institution and provide a benefit A1. In reviewing applications in which CRA performance is a relevant § ll.29(b)—2: Is an institution to the community that would not required to enter into agreements with otherwise be possible. As such, the factor, information from a CRA examination of the institution is a private parties? Agencies consider the qualitative A2. No. Although communications aspects of an institution’s activities particularly important consideration. The examination is a detailed between an institution and members of when measuring the benefits received its community may provide a valuable by a community. An institution’s evaluation of the institution’s CRA performance by its supervisory Agency. method for the institution to assess how performance under these qualitative best to address the credit needs of the criteria may augment the consideration In this light, an examination is an important, and often controlling, factor community, the CRA does not require given to an institution’s performance an institution to enter into agreements under the quantitative criteria of the in the consideration of an institution’s record. In some cases, however, the with private parties. The Agencies do regulations, resulting in a higher level of not monitor compliance with nor performance and rating. examination may not be recent, or a specific issue raised in the application enforce these agreements. ll § .28(c) Effect of Evidence of process, such as progress in addressing § ll.41—Assessment Area Discriminatory or Other Illegal Credit weaknesses noted by examiners, Delineation Practices progress in implementing commitments ll § ll.28(c)—1: What is meant by previously made to the reviewing § .41(a) In General ‘‘discriminatory or other illegal credit Agency, or a supported allegation from § ll.41(a)—1: How do the Agencies practices’’? a commenter, is relevant to CRA evaluate ‘‘assessment areas’’ under the A1. An institution engages in performance under the regulation and CRA regulations? discriminatory credit practices if it was not addressed in the examination. A1. The rule focuses on the discourages or discriminates against In these circumstances, the applicant distribution and level of an institution’s credit applicants or borrowers on a should present sufficient information to lending, investments, and services
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rather than on how and why an A2. No. However, an institution that • income levels in the institution’s institution delineated its assessment determines that it predominantly serves assessment area(s) and surrounding area(s) in a particular manner. an area that is smaller than a city, town, geographies; Therefore, the Agencies will not or other political subdivision may • locations of branches and deposit- evaluate an institution’s delineation of delineate as its assessment area the taking ATMs; its assessment area(s) as a separate larger political subdivision and then, in • loan distribution in the institution’s performance criterion. Rather, the accordance with 12 CFR ll.41(d), assessment area(s) and surrounding Agencies will only review whether the adjust the boundaries of the assessment geographies; assessment area(s) delineated by the area to include only the portion of the • the institution’s size; institution complies with the limitations political subdivision that it reasonably • the institution’s financial condition; set forth in the regulations at 12 CFR l can be expected to serve. The smaller and l.41(e). area that the institution delineates must • the business strategy, corporate § ll.41(a)—2: If an institution elects consist of entire geographies, may not structure, and product offerings of the to have the Agencies consider affiliate reflect illegal discrimination, and may institution. lending, will this decision affect the not arbitrarily exclude low- or institution’s assessment area(s)? moderate-income geographies. § ll.41(e)(4) May Not Extend A2. If an institution elects to have the Substantially Beyond an MSA Boundary ll lending activities of its affiliates § .41(d) Adjustments to Geographic or Beyond a State Boundary Unless considered in the evaluation of the Area(s) Located in a Multistate MSA institution’s lending, the geographies in § ll.41(d)—1: When may an § ll.41(e)(4)—1: What are the which the affiliate lends do not affect institution adjust the boundaries of an maximum limits on the size of an the institution’s delineation of assessment area to include only a assessment area? assessment area(s). portion of a political subdivision? A1. An institution may not delineate ll § .41(a)—3: Can a financial A1. Institutions must include whole an assessment area extending institution identify a specific racial or geographies (i.e., census tracts) in their substantially across the boundaries of an ethnic group rather than a geographic assessment areas and generally should MSA unless the MSA is in a combined area as its assessment area? include entire political subdivisions. statistical area (CSA)). Although more A3. No, assessment areas must be Because census tracts are the common than one MSA in a CSA may be based on geography. The only exception geographic areas used consistently delineated as a single assessment area, to the requirement to delineate an nationwide for data collection, the an institution’s CRA performance in assessment area based on geography is Agencies require that assessment areas individual MSAs in those assessment that an institution, the business of be made up of whole geographies. If areas will be evaluated using separate which predominantly consists of including an entire political subdivision median family incomes and other serving the needs of military personnel would create an area that is larger than relevant information at the MSA level or their dependents who are not located the area the institution can reasonably rather than at the CSA level. within a defined geographic area, may be expected to serve, an institution may, An assessment area also may not delineate its entire deposit customer but is not required to, adjust the extend substantially across state base as its assessment area. boundaries of its assessment area to boundaries unless the assessment area is § ll.41(c) Geographic Area(s) for include only portions of the political located in a multistate MSA. An Institutions Other Than Wholesale or subdivision. For example, this institution may not delineate a whole Limited Purpose Institutions adjustment is appropriate if the state as its assessment area unless the assessment area would otherwise be entire state is contained within an MSA. § ll.41(c)(1) Generally Consist of One extremely large, of unusual These limitations apply to wholesale or More MSAs or Metropolitan configuration, or divided by significant and limited purpose institutions as well Divisions or One or More Contiguous geographic barriers (such as a river, as other institutions. Political Subdivisions mountain, or major highway system). An institution must delineate separate § ll.41(c)(1)—1: Besides cities, When adjusting the boundaries of their assessment areas for the areas inside towns, and counties, what other units of assessment areas, institutions must not and outside an MSA if the area served local government are political arbitrarily exclude low- or moderate- by the institution’s branches outside the subdivisions for CRA purposes? income geographies or set boundaries MSA extends substantially beyond the A1. Townships and Indian that reflect illegal discrimination. MSA boundary. Similarly, the reservations are political subdivisions institution must delineate separate for CRA purposes. Institutions should § ll.41(e) Limitations on Delineation assessment areas for the areas inside be aware that the boundaries of of an Assessment Area and outside of a state if the institution’s townships and Indian reservations may § ll.41(e)(3) May Not Arbitrarily branches extend substantially beyond not be consistent with the boundaries of Exclude Low- or Moderate-Income the boundary of one state (unless the the census tracts (i.e., geographies) in Geographies assessment area is located in a the area. In these cases, institutions multistate MSA). In addition, the must ensure that their assessment § ll.41(e)(3)—1: How will institution should also delineate area(s) consists only of whole examiners determine whether an separate assessment areas if it has geographies by adding any portions of institution has arbitrarily excluded low- branches in areas within the same state the geographies that lie outside the or moderate-income geographies? that are widely separate and not at all political subdivision to the delineated A1. Examiners will make this contiguous. For example, an institution assessment area(s). determination on a case-by-case basis that has its main office in New York § ll.41(c)(1)—2: Are wards, school after considering the facts relevant to City and a branch in Buffalo, New York, districts, voting districts, and water the institution’s assessment area and each office serves only the districts political subdivisions for CRA delineation. Information that examiners immediate areas around it, should purposes? will consider may include delineate two separate assessment areas.
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§ ll.41(e)(4)—2: May an institution Attention: CRA Processing, 20th & a merger and subsequent data reporting delineate one assessment area that Constitution Avenue NW., MS N402, responsibilities are described below. consists of an MSA and two large Washington, DC 20551–0001. • Two institutions are exempt from counties that abut the MSA but are not For questions about submitting or CRA collection and reporting adjacent to each other? resubmitting CRA data, please contact requirements because of asset size. The A2. As a general rule, an institution’s the FFIEC at [email protected]. institutions merge. No data collection is assessment area should not extend § ll.42—2: Should an institution required for the year in which the substantially beyond the boundary of an develop its own program for data merger takes place, regardless of the MSA. Therefore, the MSA would be a collection, or will the regulators require resulting asset size. Data collection separate assessment area, and because a certain format? would begin after two consecutive years the two abutting counties are not A2. An institution may use the free in which the combined institution had adjacent to each other and, in this software that is provided by the FFIEC year-end assets at least equal to the example, extend substantially beyond to reporting institutions for data small institution asset-size threshold the boundary of the MSA, the collection and reporting or develop its amount described in 12 CFR institution would delineate each county own program. Those institutions that ll.12(u)(1). as a separate assessment area, assuming develop their own programs may create • Institution A, an institution branches or deposit-taking ATMs are a data submission using the File required to collect and report the data, located in each county and the MSA. Specifications and Edit Validation Rules and Institution B, an exempt institution, So, in this example, there would be that have been set forth to assist with merge. Institution A is the surviving three assessment areas. However, if the electronic data submissions. For institution. For the year of the merger, MSA and the two counties were in the information about specific electronic data collection is required for Institution same CSA, then the institution could formatting procedures, contact A’s transactions. Data collection is delineate only one assessment area [email protected]. optional for the transactions of the including them all. But, the institution’s § ll.42—3: How should an previously exempt institution. For the CRA performance in the MSAs and the institution report data on lines of credit? following year, all transactions of the non-MSA counties in that assessment A3. Institutions must collect and surviving institution must be collected area would be evaluated using separate report data on lines of credit in the same and reported. median family incomes and other way that they provide data on loan • Two institutions that each are relevant information at the MSA and originations. Lines of credit are required to collect and report the data state, non-MSA level, rather than at the considered originated at the time the merge. Data collection is required for CSA level. line is approved or increased; and an the entire year of the merger and for § ll.42—Data Collection, Reporting, increase is considered a new subsequent years so long as the and Disclosure origination. Generally, the full amount surviving institution is not exempt. The § ll.42—1: When must an of the credit line is the amount that is surviving institution may file either a institution collect and report data under considered originated. In the case of an consolidated submission or separate the CRA regulations? increase to an existing line, the amount submissions for the year of the merger A1. All institutions except small of the increase is the amount that is but must file a consolidated report for institutions are subject to data collection considered originated and that amount subsequent years. and reporting requirements. (‘‘Small should be reported. However, consistent § ll.42—6: Can small institutions institution’’ is defined in the Agencies’ with the Call Report instructions, get a copy of the data collection CRA regulations at 12 CFR ll.12(u).) institutions would not report an software even though they are not Examples describing the data collection increase to a small business or small required to collect or report data? requirements of institutions, in farm line of credit if the increase would A6. Yes. Any institution that is particular those that have just surpassed cause the total line of credit to exceed interested in receiving a copy of the the asset-size threshold of a small $1 million, in the case of a small software may download it from the institution, may be found on the FFIEC business line, or $500,000, in the case FFIEC Web site at http://www.ffiec.gov/ Web site at http://www.ffiec.gov/cra. All of a small farm line. Of course, cra. For assistance, institutions may institutions that are subject to the data institutions may provide information send an email to [email protected]. collection and reporting requirements about such line increases to examiners § ll.42—7: If a small institution is must report the data for a calendar year as ‘‘other loan data.’’ designated a wholesale or limited (CY) by March 1 of the subsequent year. § ll.42—4: Should renewals of lines purpose institution, must it collect data For example, data for CY 2015 would be of credit be collected and/or reported? that it would not otherwise be required reported by March 1, 2016. A4. Renewals of lines of credit for to collect because it is a small The Board of Governors of the Federal small business, small farm, consumer, institution? Reserve System processes the reports for or community development purposes A7. No. However, small institutions all of the primary regulators. Data may should be collected and reported, if that are designated as wholesale or be submitted on diskette, CD–ROM, or applicable, in the same manner as limited purpose institutions must be via Internet email. renewals of small business or small farm prepared to identify those loans, CRA respondents are encouraged to loans. See Q&A § ll.42(a)–5. investments, and services to be use the free FFIEC Data Entry Software Institutions that are HMDA reporters evaluated under the community to send their CRA data. ‘‘Submission via continue to collect and report home development test. Web’’ is the preferred option. CRA equity lines of credit at their option in § ll.42(a) Loan Information Required respondents may also send a properly accordance with the requirements of 12 To be Collected and Maintained encrypted CRA file (using the ‘‘Export to CFR part 1003. Federal Reserve Board via Internet § ll.42—5: When should merging § ll.42(a)—1: Must institutions email’’ option) to [email protected]. institutions collect data? collect and report data on all Please mail diskette or CD–ROM A5. Three scenarios of data collection commercial loans of $1 million or less submissions to: Federal Reserve Board, responsibilities for the calendar year of at origination?
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A1. No. Institutions that are not of the term of a loan. However, for Examiners would consider that portion exempt from data collection and purposes of small business and small of the line when they evaluate the reporting are required to collect and farm CRA data collection and reporting, institution’s home mortgage lending. report only those commercial loans that it is not necessary to distinguish When an institution refinances a home they capture in Call Report Schedule between the two.) When reporting small equity line of credit into another home RC–C, Part II. Small business loans are business and small farm data, however, equity line of credit, HMDA reporting defined as those whose original an institution may only report one continues to be optional. If the amounts are $1 million or less and that origination (including a renewal or institution opts to report the refinanced were reported as either ‘‘Loans secured refinancing treated as an origination) line, the entire amount of the line would by nonfarm or nonresidential real per loan per year, unless an increase in be reported as a refinancing and estate’’ or ‘‘Commercial and industrial the loan amount is granted. However, a examiners will consider the entire loans’’ in Call Report Schedule RC–C, demand loan that is merely reviewed refinanced line when they evaluate the Part I. annually is not reported as a renewal institution’s home mortgage lending. § ll.42(a)—2: For loans defined as because the term of the loan has not If an institution that has originated a small business loans, what information been extended. home equity line of credit for both home should be collected and maintained? If an institution increases the amount improvement and small business A2. Institutions that are not exempt of a small business or small farm loan purposes (or if an institution that has from data collection and reporting are when it extends the term of the loan, it refinanced such a line into another line) required to collect and maintain, in a should always report the amount of the chooses not to report a home standardized, machine-readable format, increase as a small business or small improvement loan (or a refinancing) information on each small business loan farm loan origination. The institution under HMDA, and if the line meets the originated or purchased for each should report only the amount of the regulatory definition of a ‘‘community calendar year: increase if the original or remaining development loan,’’ the institution • A unique number or alpha-numeric amount of the loan has already been should collect and report information symbol that can be used to identify the reported one time that year. For on the entire line as a community relevant loan file. example, a financial institution makes a development loan. If the line does not • The loan amount at origination. term loan for $25,000; principal qualify as a community development • The loan location. payments have resulted in a present loan, the institution has the option of • An indicator whether the loan was outstanding balance of $15,000. In the collecting and maintaining (but not to a business with gross annual next year, the customer requests an reporting) the entire line of credit as revenues of $1 million or less. additional $5,000, which is approved, ‘‘Other Secured Lines/Loans for The location of the loan must be and a new note is written for $20,000. Purposes of Small Business.’’ maintained by census tract. In addition, In this example, the institution should § ll.42(a)—8: When collecting small supplemental information contained in report both the $5,000 increase and the business and small farm data for CRA the file specifications includes a date renewal or refinancing of the $15,000 as purposes, may an institution collect and associated with the origination or originations for that year. These two report information about loans to small purchase and whether a loan was originations may be reported together as businesses and small farms located originated or purchased by an affiliate. a single origination of $20,000. outside the United States? The same requirements apply to small § ll.42(a)—6: Does a loan to the A8. At an institution’s option, it may farm loans. ‘‘fishing industry’’ come under the collect data about small business and § ll.42(a)—3: Will farm loans need definition of a small farm loan? small farm loans located outside the to be segregated from business loans? A6. Yes. Instructions for Call Report United States; however, it cannot report A3. Yes. Schedule RC—C, Part I include loans this data because the CRA data § ll.42(a)—4: Should institutions ‘‘made for the purpose of financing collection software will not accept data collect and report data on all fisheries and forestries, including loans concerning loan locations outside the agricultural loans of $500,000 or less at to commercial fishermen’’ as a United States. origination? component of the definition for ‘‘Loans § ll.42(a)—9: Is an institution that A4. Institutions are to report those to finance agricultural production and has no small farm or small business farm loans that they capture in Call other loans to farmers.’’ Call Report loans required to report under CRA? Report Schedule RC–C, Part II. Small Schedule RC–C, Part II, which serves as A9. Each institution subject to data farm loans are defined as those whose the basis of the definition for small reporting requirements must, at a original amounts are $500,000 or less business and small farm loans in the minimum, submit a transmittal sheet, and were reported as either ‘‘Loans to regulation, captures both ‘‘Loans to definition of its assessment area(s), and finance agricultural production and finance agricultural production and a record of its community development other loans to farmers’’ or ‘‘Loans other loans to farmers’’ and ‘‘Loans loans. If the institution does not have secured by farmland’’ in Call Report secured by farmland.’’ community development loans to Schedule RC–C, Part I. § ll.42(a)—7: How should an report, the record should be sent with § ll.42(a)—5: Should institutions institution report a home equity line of ‘‘0’’ in the community development collect and report data about small credit, part of which is for home loan composite data fields. An business and small farm loans that are improvement purposes and part of institution that has not purchased or refinanced or renewed? which is for small business purposes? originated any small business or small A5. An institution should collect A7. When an institution originates a farm loans during the reporting period information about small business and home equity line of credit that is for would not submit the composite loan small farm loans that it refinances or both home improvement and small records for small business or small farm renews as loan originations. (A business purposes, the institution has loans. refinancing generally occurs when the the option of reporting the portion of the § ll.42(a)—10: How should an existing loan obligation or note is home equity line that is for home institution collect and report the satisfied and a new note is written, improvement purposes as a home location of a loan made to a small while a renewal refers to an extension improvement loan under HMDA. business or farm if the borrower
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provides an address that consists of a § ll.42(a)(2)—2: How should an Alternatively, if the institution post office box number or a rural route institution collect data about multiple considered the revenues of only the and box number? loan originations to the same business? entity to which the loan is actually A10. Prudent banking practices and A2. If an institution makes multiple extended, the institution should rely Bank Secrecy Act regulations dictate originations to the same business, the solely upon whether gross annual that institutions know the location of loans should be collected and reported revenues are above or below $1 million their customers and loan collateral. as separate originations rather than for that entity. However, if the Further, Bank Secrecy Act regulations combined and reported as they are on institution considered and relied on specifically state that a post office box the Call Report, which reflects loans revenues or income of a cosigner or is not an acceptable address. Therefore, outstanding, rather than originations. guarantor that is not an affiliate of the institutions typically will know the However, if institutions make multiple borrower, such as a sole proprietor, the actual location of their borrowers or originations to the same business solely institution should not adjust the loan collateral beyond an address to inflate artificially the number or borrower’s revenues for reporting consisting only of a post office box. volume of loans evaluated for CRA purposes. Many borrowers have street addresses lending performance, the Agencies may § ll.42(a)(4)—2: If an institution in addition to rural route and box combine these loans for purposes of that is not exempt from data collection numbers. Institutions should ask their evaluation under the CRA. and reporting does not request or borrowers to provide the street address § ll.42(a)(2)—3: How should an consider revenue information to make of the main business facility or farm or institution collect data pertaining to the credit decision regarding a small the location where the loan proceeds credit cards issued to small businesses? business or small farm loan, must the otherwise will be applied. Moreover, in A3. If an institution agrees to issue institution collect revenue information many cases in which the borrower’s credit cards to a business’s employees, in connection with that loan? A2. No. In those instances, the address consists only of a rural route all of the credit card lines opened on a institution should enter the code number, the institution knows the particular date for that single business indicating ‘‘revenues not known’’ on the location (i.e., the census tract) of the should be reported as one small individual loan portion of the data borrower or loan collateral. Once the business loan origination rather than collection software or on an internally institution has this information reporting each individual credit card developed system. Loans for which the available, it should assign the census line, assuming the criteria in the ‘‘small institution did not collect revenue tract to that location (geocode) and business loan’’ definition in the information may not be included in the report that information as required regulation are met. The credit card loans to businesses and farms with gross under the regulation. program’s ‘‘amount at origination’’ is the annual revenues of $1 million or less However, if an institution cannot sum of all of the employee/business credit cards’ credit limits opened on a when reporting this data. determine a rural borrower’s street § ll.42(a)(4)—3: What gross revenue address, and does not know the census particular date. If subsequently issued credit cards increase the small business should an institution use in determining tract, the institution should report the the gross annual revenue of a start-up borrower’s state, county, MSA or credit line, the added amount is reported as a new origination. business? metropolitan division, if applicable, and A3. The institution should use the ‘‘NA,’’ for ‘‘not available,’’ in lieu of a § ll.42(a)(3) The Loan Location actual gross annual revenue to date census tract code. § ll.42(a)(3)—1: Which location (including $0 if the new business has § ll.42(a)(2) Loan Amount at should an institution record if a small had no revenue to date). Although a Origination business loan’s proceeds are used in a start-up business will provide the variety of locations? institution with pro forma projected § ll.42(a)(2)—1: When an A1. The institution should record the revenue figures, these figures may not institution purchases a small business loan location by either the location of accurately reflect actual gross revenue or small farm loan, in whole or in part, the small business borrower’s and, therefore, should not be used. which amount should the institution headquarters or the location where the § ll.42(a)(4)—4: When indicating collect and report—the original amount greatest portion of the proceeds are the gross annual revenue of small of the loan or the amount at purchase? applied, as indicated by the borrower. business or small farm borrowers, do A1. When collecting and reporting institutions rely on the gross annual ll information on purchased small § .42(a)(4) Indicator of Gross Annual revenue or the adjusted gross annual business and small farm loans, Revenue revenue of their borrowers? including loan participations, an § ll.42(a)(4)—1: When indicating A4. Institutions rely on the gross institution collects and reports the whether a small business borrower had annual revenue, rather than the adjusted amount of the loan at origination, not at gross annual revenues of $1 million or gross annual revenue, of their small the time of purchase. This is consistent less, upon what revenues should an business or small farm borrowers when with the Call Report’s use of the institution rely? indicating the revenue of small business ‘‘original amount of the loan’’ to A1. Generally, an institution should or small farm borrowers. The purpose of determine whether a loan should be rely on the revenues that it considered this data collection is to enable reported as a ‘‘loan to a small business’’ in making its credit decision. For examiners and the public to judge or a ‘‘loan to a small farm’’ and in which example, in the case of affiliated whether the institution is lending to loan size category a loan should be businesses, such as a parent corporation small businesses and small farms or reported. When assessing the volume of and its subsidiary, if the institution whether it is only making small loans to small business and small farm loan considered the revenues of the entity’s larger businesses and farms. purchases for purposes of evaluating parent or a subsidiary corporation of the The regulation does not require lending test performance under CRA, parent as well, then the institution institutions to request or consider however, examiners will evaluate an would aggregate the revenues of both revenue information when making a institution’s activity based on the corporations to determine whether the loan; however, if institutions do gather amounts at purchase. revenues are $1 million or less. this information from their borrowers,
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the Agencies expect them to collect and loan, where should it be reported? Can § ll.22(b)(4)–1, examiners may make rely upon the borrowers’ gross annual Federal Housing Administration, qualitative distinctions among revenue for purposes of CRA. The CRA Veterans Affairs, and Small Business community development loans on the regulations similarly do not require Administration loans be reported as basis of the extent to which the loan institutions to verify revenue amounts; community development loans? advances the community development thus, institutions may rely on the gross A2. Except for multifamily affordable purpose. annual revenue amount provided by housing loans, which may be reported In addition, if an institution that borrowers in the ordinary course of by retail institutions both under HMDA reports CRA data elects to request business. If an institution does not as home mortgage loans and as consideration for loans that provide collect gross annual revenue community development loans, in order mixed-income housing where only a information for its small business and to avoid double counting, retail portion of the loan has community small farm borrowers, the institution institutions must report loans that meet development as its primary purpose, should enter the code ‘‘revenues not the definition of ‘‘home mortgage loan,’’ such as in connection with a known.’’ See Q&A § ll.42(a)(4)–2. ‘‘small business loan,’’ or ‘‘small farm development that has a mixed-income loan’’ only in those respective categories housing component or an affordable § ll.42(b) Loan Information Required even if they also meet the definition of housing set-aside required by Federal, To Be Reported ‘‘community development loan.’’ As a state, or local government, the § ll.42(b)(1) Small Business and practical matter, this is not a institution must report only the pro rata Small Farm Loan Data disadvantage for institutions evaluated dollar amount of the portion of the loan under the lending, investment, and § ll.42(b)(1)—1: For small business that provides affordable housing to low- service tests because any affordable or moderate-income individuals. The and small farm loan information that is housing mortgage, small business, small collected and maintained, what data pro rata dollar amount of the total farm, or consumer loan that would activity will be based on the percentage should be reported? otherwise meet the definition of A1. Each institution that is not of units that are affordable. See Q&A ‘‘community development loan’’ will be § ll.12(h)–8 for a discussion of exempt from data collection and considered elsewhere in the lending reporting is required to report in ‘‘primary purpose’’ of community test. Any of these types of loans that development describing the distinction machine-readable form annually by occur outside the institution’s March 1 the following information, between the types of loans that would assessment area(s) can receive be reported in full and those for which aggregated for each census tract in consideration under the borrower which the institution originated or only the pro rata amount would be characteristic criteria of the lending test. reported. purchased at least one small business or See Q&A § ll.22(b)(2) & (3)–4. § ll.42(b)(2)—4: When an small farm loan during the prior year: Limited purpose and wholesale institution purchases a participation in • The number and amount of loans institutions that meet the size threshold originated or purchased with original for reporting purposes also must report a community development loan, which amounts of $100,000 or less. loans that meet the definitions of home amount should the institution report— • The number and amount of loans mortgage, small business, or small farm the entire amount of the credit originated or purchased with original loans in those respective categories. originated by the lead lender or the amounts of more than $100,000 but less However, these institutions must also amount of the participation purchased? than or equal to $250,000. report any loans from those categories A4. The institution reports only the • The number and amount of loans that meet the regulatory definition of amount of the participation purchased originated or purchased with original ‘‘community development loan’’ as as a community development loan. amounts of more than $250,000 but not community development loans. There is However, the institution uses the entire more than $1 million, as to small no double counting because wholesale amount of the credit originated by the business loans, or $500,000, as to small and limited purpose institutions are not lead lender to determine whether the farm loans. subject to the lending test and, original credit meets the definition of a • To the extent that information is therefore, are not evaluated on their ‘‘loan to a small business,’’ ‘‘loan to a available, the number and amount of level and distribution of home mortgage, small farm,’’ or ‘‘community loans to businesses and farms with gross small business, small farm, and development loan.’’ For example, if an annual revenues of $1 million or less consumer loans. institution purchases a $400,000 (using the revenues the institution § ll.42(b)(2)—3: When the primary participation in a business credit that considered in making its credit purpose of a loan is to finance an has a community development purpose, decision). affordable housing project for low- or and the entire amount of the credit moderate-income individuals, but, for originated by the lead lender is over $1 ll § .42(b)(2) Community Development example, only 40 percent of the units in million, the institution would report Loan Data question will actually be occupied by $400,000 as a community development § ll.42(b)(2)—1: What information individuals or families with low or loan. about community development loans moderate incomes, should the entire § ll.42(b)(2)—5: Should institutions must institutions report? loan amount be reported as a collect and report data about A1. Institutions subject to data community development loan? community development loans that are reporting requirements must report the A3. It depends. As long as the primary refinanced or renewed? aggregate number and amount of purpose of the loan is a community A5. Yes. Institutions should collect community development loans development purpose as described in information about community originated and purchased during the Q&A § ll.12(h)–8, the full amount of development loans that they refinance prior calendar year. the institution’s loan should be or renew as loan originations. § ll.42(b)(2)—2: If a loan meets the included in its reporting of aggregate Community development loan definition of a home mortgage, small amounts of community development refinancings and renewals are subject to business, or small farm loan AND lending. Even though the entire amount the reporting limitations that apply to qualifies as a community development of the loan is reported, as noted in Q&A refinancings and renewals of small
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business and small farm loans. See Q&A A1. No. Further, if the institution commercial and industrial purposes § ll.42(a)–5. routinely collects, but does not verify, a that are secured by residential real borrower’s income when making a estate, unless the security interest in the § ll.42(b)(3) Home Mortgage Loans credit decision, it need not verify the nonfarm residential real estate is taken § ll.42(b)(3)—1: Must institutions income for purposes of data only as an abundance of caution. (See that are not required to collect home maintenance. Q&A § ll.12(v)–3.) Loans extended to mortgage loan data by the HMDA collect § ll.42(c)(1)(iv)—2: May an small businesses with gross annual home mortgage loan data for purposes institution list ‘‘0’’ in the income field revenues of $1 million or less may, of the CRA? on consumer loans made to employees however, be secured by residential real A1. No. If an institution is not when collecting data for CRA purposes estate. May an institution collect this required to collect home mortgage loan as the institution would be permitted to information to supplement its small data by the HMDA, the institution need do under HMDA? business lending data at the time of not collect home mortgage loan data A2. Yes. examination? under the CRA. Examiners will sample § ll.42(c)(1)(iv)—3: When collecting A1. Yes. If these loans promote these loans to evaluate the institution’s the gross annual income of consumer community development, as defined in home mortgage lending. If an institution borrowers, do institutions collect the the regulation, the institution should wants to ensure that examiners consider gross annual income or the adjusted collect and report information about the all of its home mortgage loans, the gross annual income of the borrowers? loans as community development loans. institution may collect and maintain A3. Institutions collect the gross Otherwise, at the institution’s option, it data on these loans. annual income, rather than the adjusted may collect and maintain data § ll.42(c) Optional Data Collection gross annual income, of consumer concerning loans, purchases, and lines and Maintenance borrowers. The purpose of income data of credit extended to small businesses collection in connection with consumer and secured by nonfarm residential real § ll.42(c)(1) Consumer Loans loans is to enable examiners to estate for consideration in the CRA § ll.42(c)(1)—1: What are the data determine the distribution, particularly evaluation of its small business lending. requirements regarding consumer loans? in the institution’s assessment area(s), of An institution may collect this A1. There are no data reporting the institution’s consumer loans, based information as ‘‘Other Secured Lines/ requirements for consumer loans. on borrower characteristics, including Loans for Purposes of Small Business’’ Institutions may, however, opt to collect the number and amount of consumer in the individual loan data. This and maintain data on consumer loans. If loans to low-, moderate-, middle-, and information should be maintained at the an institution chooses to collect upper-income borrowers, as determined institution but should not be submitted information on consumer loans, it may on the basis of gross annual income. for central reporting purposes. collect data for one or more of the The regulation does not require § ll.42(c)(2)—2: Must an institution following categories of consumer loans: institutions to request or consider collect data on loan commitments and Motor vehicle, credit card, home equity, income information when making a letters of credit? other secured, and other unsecured. If loan; however, if institutions do gather A2. No. Institutions are not required an institution collects data for loans in this information from their borrowers, to collect data on loan commitments a certain category, it must collect data the Agencies expect them to collect the and letters of credit. Institutions may, for all loans originated or purchased borrowers’ gross annual income for however, provide for examiner within that category. The institution purposes of CRA. The CRA regulations consideration information on letters of must maintain these data separately for similarly do not require institutions to credit and commitments. each category for which it chooses to verify income amounts; thus, § ll.42(c)(2)—3: Are commercial collect data. The data collected and institutions may rely on the gross and consumer leases considered loans maintained should include for each loan annual income amount provided by for purposes of CRA data collection? • a unique number or alpha-numeric borrowers in the ordinary course of A3. Commercial and consumer leases symbol that can be used to identify the business. are not considered small business or relevant loan file; § ll.42(c)(1)(iv)—4: Whose income small farm loans or consumer loans for • the loan amount at origination or does an institution collect when a purposes of the data collection purchase; consumer loan is made to more than requirements in 12 CFR ll.42(a) & • the loan location; and one borrower? (c)(1). However, if an institution wishes • the gross annual income of the A4. An institution that chooses to to collect and maintain data about borrower that the institution considered collect and maintain information on leases, the institution may provide this in making its credit decision. consumer loans collects the gross data to examiners as ‘‘other loan data’’ Generally, guidance given with annual income of all primary obligors under 12 CFR ll.42(c)(2) for respect to data collection of small for consumer loans, to the extent that consideration under the lending test. business and small farm loans, the institution considered the income of § ll.42(d) Data on Affiliate Lending including, for example, guidance the obligors when making the decision regarding collecting loan location data, to extend credit. Primary obligors § ll.42(d)—1: If an institution elects and whether to collect data in include co-applicants and co-borrowers, to have an affiliate’s home mortgage connection with refinanced or renewed including co-signers. An institution lending considered in its CRA loans, will also apply to consumer does not, however, collect the income of evaluation, what data must the loans. guarantors on consumer loans, because institution make available to examiners? guarantors are only secondarily liable A1. If the affiliate is a HMDA reporter, § ll.42(c)(1)(iv) Income of Borrower for the debt. the institution must identify those loans § ll.42(c)(1)(iv)—1: If an institution reported by its affiliate under 12 CFR does not consider income when making § ll.42(c)(2) Other Loan Data part 1003 (Regulation C, implementing an underwriting decision in connection § ll.42(c)(2)—1: Call Report HMDA). At its option, the institution with a consumer loan, must it collect Schedule RC–C, Part II does not allow may provide examiners with either the income information? institutions to report loans for affiliate’s entire HMDA Disclosure
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Statement or just those portions See 12 CFR ll.43(b)(5). The kept at a main office and at a branch. covering the loans in its assessment institution must update the description The institution also must ensure that the area(s) that it is electing to consider. If on a quarterly basis. information required to be maintained the affiliate is not required by HMDA to at a main office and branch, if kept § ll.43(b) Additional Information report home mortgage loans, the electronically, can be readily Available to the Public institution must provide sufficient data downloaded and printed for any concerning the affiliate’s home mortgage § ll.43(b)(1) Institutions Other Than member of the public who requests a loans for the examiners to apply the Small Institutions hard copy of the information. performance tests. § ll.43(b)(1)—1: Must an institution § ll.44—Public Notice by Institutions § ll.43—Content and Availability of that elects to have affiliate lending § ll.44—1: Are there any placement Public File considered include data on this lending or size requirements for an institution’s in its public file? ll public notice? § .43(a) Information Available to the A1. Yes. The lending data to be Public A1. The notice must be placed in the contained in an institution’s public file institution’s public lobby, but the size § ll.43(a)(1) Public Comments Related covers the lending of the institution’s and placement may vary. The notice to an Institution’s CRA Performance affiliates, as well as of the institution should be placed in a location and be of § ll.43(a)(1)—1: What happens to itself, considered in the assessment of a sufficient size that customers can comments received by the Agencies? the institution’s CRA performance. An easily see and read it. A1. Comments received by an Agency institution that has elected to have ll will be on file at the Agency for use by mortgage loans of an affiliate considered § .45—Publication of Planned examiners. Those comments are also must include either the affiliate’s Examination Schedule available to the public unless they are HMDA Disclosure Statements for the § ll.45—1: Where will the Agencies exempt from disclosure under the two prior years or the parts of the publish the planned examination Freedom of Information Act. Disclosure Statements that relate to the schedule for the upcoming calendar § ll.43(a)(1)—2: Is an institution institution’s assessment area(s), at the quarter? required to respond to public institution’s option. A1. The Agencies may use the comments? § ll.43(b)(1)—2: May an institution Federal Register, a press release, the A2. No. All institutions should review retain its CRA disclosure statement in Internet, or other existing Agency comments and complaints carefully to electronic format in its public file, rather publications for disseminating the list of determine whether any response or than printing a hard copy of the CRA the institutions scheduled for CRA other action is warranted. A small disclosure statement for retention in its examinations during the upcoming institution subject to the small public file? calendar quarter. Interested parties institution performance standards is A2. Yes, if the institution can readily should contact the appropriate Federal specifically evaluated on its record of print out its CRA disclosure statement financial supervisory Agency for taking action, if warranted, in response from an electronic medium (e.g., CD, information on how the Agency is to written complaints about its DVD, or Internet Web site) when a publishing the planned examination performance in helping to meet the consumer requests the public file. If the schedule. credit needs in its assessment area(s). request is at a branch other than the § ll.45—2: Is inclusion on the list of See 12 CFR ll.26(b)(5). For all main office or the one designated institutions that are scheduled to institutions, responding to comments branch in each state that holds the undergo CRA examinations in the next may help to foster a dialogue with complete public file, the institution calendar quarter determinative of members of the community or to present should provide the CRA disclosure whether an institution will be examined relevant information to an institution’s statement in a paper copy, or in another in that quarter? supervisory Agency. If an institution format acceptable to the requestor, A2. No. The Agencies attempt to responds in writing to a letter in the within five calendar days, as required determine as accurately as possible public file, the response must also be by 12 CFR ll.43(c)(2)(ii). which institutions will be examined during the upcoming calendar quarter. placed in that file, unless the response § ll.43(c) Location of Public However, whether an institution’s name reflects adversely on any person or Information placing it in the public file violates a appears on the published list does not law. § ll.43(c)—1: What is an conclusively determine whether the institution’s ‘‘main office’’ ? institution will be examined during that § ll.43(a)(2) CRA Performance A1. An institution’s main office is the quarter. The Agencies may need to defer Evaluation main, home, or principal office as a planned examination or conduct an § ll.43(a)(2)—1: May an institution designated in its charter. unforeseen examination because of include a response to its CRA § ll.43(c)—2: May an institution scheduling difficulties or other performance evaluation in its public maintain a copy of its public file on an circumstances. intranet or the Internet? file? ll A1. Yes. However, the format and A2. Yes, an institution may keep all Appendix A to Part —Ratings content of the evaluation, as transmitted or part of its public file on an intranet Appendix A to Part ll—1: Must an by the supervisory Agency, may not be or the Internet, provided that the institution’s performance fit each aspect of a altered or abridged in any manner. In institution maintains all of the particular rating profile in order to receive addition, an institution that received a information, either in paper or that rating? less than satisfactory rating during it electronic form, that is required in 12 A1. No. Exceptionally strong performance ll in some aspects of a particular rating profile most recent examination must include CFR .43. An institution that opts to may compensate for weak performance in in its public file a description of its keep part or all of its public file on an others. For example, a retail institution other current efforts to improve its intranet or the Internet must follow the than an intermediate small institution that performance in helping to meet the rules in 12 CFR ll.43(c)(1) and (2) as uses non-branch delivery systems to obtain credit needs of its entire community. to what information is required to be deposits and to deliver loans may have
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almost all of its loans outside the institution’s that are scheduled for CRA evaluation in a OCC-, FDIC-, and Board-supervised assessment area(s). Assume that an examiner, particular quarter, you may insert the institutions: ‘‘Officer in Charge of after consideration of performance context following Web site along with the postal Supervision’’ is the title of the responsible and other applicable regulatory criteria, mailing address of the deputy comptroller: official at the appropriate Federal Reserve concludes that the institution has weak http://www.occ.treas.gov. In addition, in Bank. performance under the lending criteria connection with the invitation for comments applicable to lending activity, geographic on the bank’s performance in helping to meet End of text of the Interagency Questions distribution, and borrower characteristics community credit needs, you may insert the and Answers within the assessment area(s). The institution following email address along with the postal may compensate for such weak performance mailing address of the deputy comptroller: Dated: July 6, 2016. by exceptionally strong performance in [email protected]. Thomas J. Curry, For community banks, insert in the community development lending in its Comptroller of the Currency. assessment area(s) or a broader statewide or appropriate blank the postal mailing address regional area that includes its assessment of the deputy comptroller of the district in which the institution is located. These By order of the Board of Governors of the area(s). addresses can be found at http:// Federal Reserve System, July 7, 2016. Appendix B to Part ll—CRA Notice www.occ.gov. For banks supervised under the Robert deV. Frierson, large bank program, insert in the appropriate Secretary of the Board. Appendix B to Part ll—1: What agency blank the following postal mailing address: information should be added to the CRA ‘‘Large Bank Supervision, 400 7th Street SW., Dated at Washington, DC, this 6th day of notice form? Washington, DC 20219–0001.’’ For banks July, 2016. A1. The following information should be supervised under the midsize/credit card Federal Deposit Insurance Corporation. added to the form: bank program, insert in the appropriate blank Valerie J. Best, OCC-supervised institutions only: For all the following postal mailing address: Assistant Executive Secretary. national banks and Federal savings ‘‘Midsize and Credit Card Bank Supervision, associations (collectively, banks), in 400 7th Street SW., Washington, DC 20219– [FR Doc. 2016–16693 Filed 7–22–16; 8:45 am] connection with the nationwide list of banks 0001.’’ BILLING CODE 4810–33–P 6210–01–P 6714–01–P
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Part III
Small Business Administration
13 CFR Parts 121, 124, 125, et al. Small Business Mentor Prote´ge´ Programs; Final Rule
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SMALL BUSINESS ADMINISTRATION was published, the title had been annually to SBA the participants in its changed to: ‘‘Small Business Mentor mentor-prote´ge´ program, the assistance 13 CFR Parts 121, 124, 125, 126, 127, Prote´ge´ Program; Small Business Size provided to small businesses through and 134 Regulations; Government Contracting the program, and the progress of prote´ge´ RIN 3245–AG24 Programs; 8(a) Business Development/ firms to compete for Federal prime Small Disadvantaged Business Status contracts and subcontracts. Small Business Mentor Prote´ge´ Determinations; HUBZone Program; On February 5, 2015, SBA published Programs Women-Owned Small Business Federal in the Federal Register a comprehensive Contract Program; Rules of Procedure proposal to implement a new AGENCY: U.S. Small Business Governing Cases Before the Office of Government-wide mentor-prote´ge´ Administration. Hearings and Appeals.’’ In drafting this program for all small businesses. 80 FR ACTION: Final rule. final rule, SBA concluded that the 6618. SBA decided to implement one simpler current title (‘‘Small Business new small business mentor-prote´ge´ SUMMARY: The U.S. Small Business Mentor Prote´ge´ Programs’’) is easier for program instead of four new mentor- Administration (SBA or Agency) is the public to understand and would be prote´ge´ programs (one for small amending its regulations to implement consistent with the title that has been businesses, one for SDVO small provisions of the Small Business Jobs publicly reported in the Regulatory businesses, one for WOSBs and one for Act of 2010, and the National Defense Agenda since 2013. HUBZone small businesses) since the Authorization Act for Fiscal Year 2013. other three types of small businesses Based on authorities provided in these I. Background (SDVO, HUBZone and women-owned) two statutes, the rule establishes a On September 27, 2010, the President would be necessarily included within Government-wide mentor-prote´ge´ signed into law the Small Business Jobs any mentor-prote´ge´ program targeting program for all small business concerns, Act of 2010 (Jobs Act), Public Law 111– all small business concerns. SBA did consistent with SBA’s mentor-prote´ge´ 240, 124 Stat. 2504, which was designed not eliminate the 8(a) BD mentor- program for Participants in SBA’s 8(a) to protect the interests of small prote´ge´ program. Thus, the intent was to Business Development (BD) program. businesses and increase opportunities in propose two separate mentor-prote´ge´ The rule also makes minor changes to the Federal marketplace. With the programs, one for 8(a) BD Participants the mentor-prote´ge´ provisions for the enactment of the Jobs Act, Congress and one for all small businesses 8(a) BD program in order to make the recognized that mentor-prote´ge´ (including 8(a) Participants if they mentor-prote´ge´ rules for each of the programs serve an important business choose to create a small business programs as consistent as possible. The development function for small mentor-prote´ge´ relationship instead of a rule also amends the current joint business and authorized SBA to mentor-prote´ge´ relationship under the venture provisions to clarify the establish separate mentor-prote´ge´ 8(a) BD program). The small business conditions for creating and operating programs for the Service-Disabled mentor-prote´ge´ program was drafted to joint venture partnerships, including the Veteran-Owned Small Business Concern be as similar to the 8(a) mentor-prote´ge´ effect of such partnerships on any (SDVO SBC) Program, the HUBZone program as possible. mentor-prote´ge´ relationships. In Program, and the Women-Owned Small The proposed rule called for a 60-day addition, the rule makes several Business (WOSB) Program, each comment period, with comments additional changes to current size, 8(a) modeled on SBA’s existing mentor- required to be made to SBA by April 6, Office of Hearings and Appeals and prote´ge´ program available to 8(a) 2015. The overriding comment SBA HUBZone regulations, concerning Business Development (BD Program received in the first few weeks after the among other things, ownership and Participants. See section 1347(b)(3) of publication was to extend the comment control, changes in primary industry, the Jobs Act. period. In response to these comments, standards of review and interested party On January 2, 2013, the President SBA published a notice in the Federal status for some appeals. Finally, SBA signed into law the National Defense Register on April 7, 2015, extending the notes that the title of this rule has been Authorization Act for Fiscal Year 2013 comment period an additional 30 days changed. (NDAA 2013), Public Law 112–239, 126 to May 6, 2015. 80 FR 18556. In Stat. 1632. Section 1641 of the NDAA addition to providing a 90-day comment DATES: This rule is effective August 24, 2013 authorized SBA to establish a 2016. period, SBA also conducted a series of mentor-prote´ge´ program for all small tribal consultations pursuant to FOR FURTHER INFORMATION CONTACT: business concerns. This section further Executive Order 13175, Tribal Brenda Fernandez, U.S. Small Business provides that a small business mentor- Consultations. SBA conducted three in- Administration, Office of Government prote´ge´ program must be identical to the person tribal consultations (in Contracting, 409 3rd Street SW., 8th 8(a) BD mentor-prote´ge´ program, except Washington, DC on February 26, 2015, Floor, Washington, DC 20416; (202) that SBA may modify the program to the in Tulsa, Oklahoma on April 21, 2015, 205–7337; [email protected]. extent necessary, given the types of and in Anchorage, Alaska on April 23, SUPPLEMENTARY INFORMATION: This rule small business concerns to be included 2015) and two telephonic tribal initially appeared in the Regulatory as prote´ge´s. Section 1641 also provides consultations (one on April 7, 2015, and Agenda of Fall 2010 with the title that a Federal department or agency a Hawaii/Native Hawaiian Organization ‘‘Small Business Jobs Act: Small could not carry out its own agency specific one on April 8, 2015). Business Mentor-Prote´ge´ Programs.’’ specific mentor-prote´ge´ program for Currently, the mentor-prote´ge´ SBA carried this rule title until the small businesses unless the head of the program available to firms participating Regulatory Agenda of Spring 2013 when department or agency submitted a plan in the 8(a) BD program is used as a the reference to the Jobs Act was taken for such a program to SBA and received business development tool in which out, and the title changed to ‘‘Small the SBA Administrator’s approval of the mentors provide diverse types of Business Mentor-Prote´ge´ Programs.’’ plan. Finally, section 1641 requires the business assistance to eligible 8(a) BD This change reflected the statutory head of each Federal department or prote´ge´s. This assistance may include, amendments in section 1641 of NDAA agency carrying out an agency-specific among other things, technical and/or 2013. However, when the proposed rule mentor-prote´ge´ program to report management assistance; financial
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assistance in the form of equity In addition, it is not SBA’s intent to important business development investments and/or loans; subcontracts; terminate a particular MPA without purposes that should continue to be and/or assistance in performing Federal considering the views of the prote´ge´ coordinated through SBA’s Office of prime contracts through joint venture firm. However, the mere fact that a Business Development, rather than arrangements. The explicit purpose of prote´ge´ wants the mentor-prote´ge´ through a separate mentor-prote´ge´ office the 8(a) BD mentor-prote´ge´ relationship relationship to continue will not be managed elsewhere within the Agency. is to enhance the capabilities of prote´ge´s dispositive if SBA believes that As such, this final rule makes no and to improve their ability to termination is justified. changes as to how MPAs are processed successfully compete for both Conversely, SBA received a for the 8(a) BD program. government and commercial contracts. significant number of comments In addition, the final rule revises the Similarly, the mentor-prote´ge´ program supporting a small business mentor- joint venture provisions contained in for all small business concerns is prote´ge´ program. These commenters § 125.15(b) (for SDVO SBCs, and which designed to require approved mentors to believed that a small business mentor- are now contained in § 125.18(b)), provide assistance to prote´ge´ firms in prote´ge´ program would enable firms § 126.616 (for HUBZone SBCs), and order to enhance the capabilities of that are not in the 8(a) BD program to § 127.506 (for WOSB and Economically prote´ge´s, to assist prote´ge´s with meeting receive critical business development Disadvantaged Women-Owned Small their business goals, and to improve the assistance that would otherwise not be Business (EDWOSB) concerns) to more ability of prote´ge´s to compete for available to them. Many of these fully align those requirements to the contracts. commenters expressed support for the requirements of the 8(a) BD program. opportunity to gain meaningful One commenter opposed expanding The rule also adds a new § 125.8 to expertise that would help them to the mentor-prote´ge´ program beyond the specify requirements for joint ventures independently perform more complex 8(a) BD program. The commenter between small business prote´ge´ firms and higher value contracts in the future. and their mentors. The rule also makes believed that it has not been established This rule implements a mentor- that the 8(a) mentor-prote´ge´ program is several additional changes to current prote´ge´ program similar to the 8(a) BD size, 8(a) BD and HUBZone regulations bestowing a substantial benefit on 8(a) mentor-prote´ge´ program for all small Participants, and, therefore, SBA should that are needed to clarify certain business concerns. The rule adds this provisions or correct interpretations of perform additional research and program to a new § 125.9 of SBA’s analysis before expanding the program. the regulations that were inconsistent regulations. SBA proposed one program with SBA’s intent. These changes, the SBA disagrees. In the current 8(a) BD for all small businesses because SBA mentor-prote´ge´ program, in order for comments to the proposed rule, and believed it would be easier for the small SBA’s response to the comments are set any mentor-prote´ge´ relationship to business and acquisition communities continue, the 8(a) prote´ge´ firm must forth more fully below. to use and understand. However, SBA In response to the 90-day comment demonstrate annually what benefits it specifically requested comments as to has derived from the mentor-prote´ge´ period, SBA received 113 comments, whether SBA should finalize one small with most of the commenters relationship. Where the benefits business mentor-prote´ge´ program, as provided to the prote´ge´ firm are commenting on multiple proposed proposed, or, rather, five separate provisions. With the exception of minimal or where it appears that the ´ ´ mentor-protege programs for the various comments that did not set forth any relationship has been used primarily to small business entities. Most permit a non–8(a) (oftentimes, large) rationale or make suggestions, SBA commenters supported having one new discusses and responds fully to all the mentor to benefit from contracts with its ´ ´ small business mentor-protege program comments below. approved prote´ge´, through one or more instead of four new mentor-prote´ge´ joint ventures, that it would otherwise programs (one for SDVO small Summary of Comments and SBA’s not be eligible for, SBA will terminate businesses, one for HUBZone small Response the mentor-prote´ge´ relationship. The businesses, one for WOSBs, and one for Definition of Joint Venture (13 CFR proposed rule also provided that SBA small businesses not falling into one of 121.103(h)) may terminate the mentor-prote´ge´ the other categories). They agreed that it agreement (MPA) where it determines would be less confusing to deal with SBA’s size regulations recognize that that the parties are not complying with one new program, rather than four new joint ventures may be formal or any term or condition of the MPA. This programs, and that it was not necessary informal. The proposed rule amended rule requires similar reporting of to have four separate mentor-prote´ge´ § 121.103(h) to clarify that every joint benefits for non–8(a) prote´ge´ firms and programs since the three subcategories venture, whether a separate legal entity similar consequences where the benefits of small business are necessarily or an ‘‘informal’’ arrangement that exists provided to the prote´ge´ firm do not included within the overall category of between two (or more) parties, must be adequately justify the mentor-prote´ge´ small business. Many of the commenters in writing. SBA never meant that an relationship. One commenter requested were concerned, however, that changes informal joint venture arrangement clarification as to when and how SBA could be made to the current 8(a) BD could exist without a formal written would cancel a MPA. SBA’s analysis as mentor-prote´ge´ program. Specifically, document setting forth the to whether a prote´ge´ firm is adequately commenters were concerned that SBA responsibilities of all parties to the joint benefitting from the relationship or might want to eliminate the 8(a) BD venture. SBA merely intended to whether non-compliance with one or mentor-prote´ge´ program as a separate recognize that a joint venture need not more specific terms or conditions of the program and instead roll it into the be established as a limited liability MPA should warrant termination of the small business mentor-prote´ge´ program. company or other formal separate legal agreement is a fact specific SBA has considered those concerns and entity. determination to be made based on the has decided to keep the 8(a) BD mentor- A few comments opposed that totality of the circumstances. SBA prote´ge´ program as a separate program. provision of the proposed rule that would not terminate a particular MPA That program has independently identified informal joint ventures as where there are de minimus or operated successfully for a number of partnerships, believing that entering inadvertent violations of the agreement. years and SBA believes that it serves into a formal or informal partnership
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often comes with certain obligations company itself did not perform work oftentimes a firm will have some that may not be intended under a joint under the contract and the individual individuals not on its payroll venture. For example, partners generally employees who performed work did not considered an employee for HUBZone have fiduciary duties to each other, bind at any point work for the prote´ge´ firm. eligibility purposes. Populated joint one another with their actions, and are SBA received comments on both sides ventures present a problem because it jointly and severally liable for the debts of this issue. Several commenters can be difficult for firms to determine of the business. One commenter supported the proposed change, noting whom should be counted as an recommended that SBA should replace that forming a separate legal entity is an employee at any given time. the phrase ‘‘formal or informal undue burden, and questioned whether SBA continues to believe that the partnership’’ with the words the firm admitted to the 8(a) program benefits received by a prote´ge´ from a ‘‘contractual affiliation.’’ SBA does not (the prote´ge´ small business) would gain joint venture are more readily agree that this recommended change any direct benefits if all the work was identifiable where the work done on would be beneficial. First, SBA believes performed by a separate legal entity. In behalf of the joint venture is performed that the term ‘‘contractual affiliation’’ is addition, several of the commenters by the prote´ge´ and the mentor not precise and would cause confusion. appreciated SBA’s attempt to simplify separately. In such a case, it is much Moreover, SBA continues to believe that these regulatory requirements. Several easier to determine that the prote´ge´ firm state law would recognize an ‘‘informal’’ other commenters opposed the performed at least 40% of all work done joint venture with a written document elimination of populated joint ventures. by the joint venture, performed more setting forth the responsibilities of the Many of these commenters believed that than merely ministerial or joint venture partners as some sort of populated joint venture companies are administrative work, and otherwise partnership. As such, this rule merely an important mechanism for an entity- gained experience that could be used to identifies the consequences of forming owned firm to remain competitive. They perform a future contract an informal joint venture and should argued that this method of business independently. Thus, this rule adopts assist firms in determining what type of organization facilitates the development the proposed language to allow a joint venture meets the parties’ needs in of the disadvantaged small business separate legal entity joint venture to each case. If the joint venture partners because it makes the company more have its own separate employees to do not want the associated competitive in the marketplace. perform administrative functions, but consequences of being considered a Specifically, these commenters pointed not to have its own separate employees partnership, then it might be beneficial out that a populated joint venture has its to perform contracts awarded to the for the joint venture to be formed as a own lower indirect costs, which, in joint venture. limited liability company. Therefore, turn, lowers the cost to the Government. SBA also proposed to require joint this final rule adopts the proposed Although SBA understands the benefit venture partners to allow SBA’s language and specifies that a joint of using lower indirect costs from a authorized representatives, including venture may be a formal or informal populated joint venture, SBA continues representatives authorized by the SBA partnership or exist as a separate limited to believe that a small prote´ge´ firm does Inspector General, to access its files and liability company or other separate legal not adequately enhance its expertise or inspect and copy records and entity. However, regardless of form, the ability to perform larger and more documents when necessary. Several joint venture must be reduced to a complex contracts on its own in the commenters requested SBA to clarify written agreement. future when all the work through a joint that the access should be limited to In addition, the proposed rule venture is performed by a populated documents and records relating to the specified that if a joint venture exists as separate legal entity. A joint venture joint venture, not to unrelated a formal separate legal entity, it may not between a prote´ge´ firm and its mentor documents of the joint venture partners be populated with individuals intended is intended to promote the business themselves. SBA agrees and has to perform contracts awarded to the development of the prote´ge´ firm. SBA amended §§ 124.513(i), 125.8(h), joint venture. This is a change from the questions how that can be accomplished 125.18(b)(8), 126.616(h), and 127.506(i) current regulation that allows a separate where the prote´ge´ itself performs no to clarify that SBA’s access would be legal entity joint venture to be work on a particular joint venture related to files, records and documents unpopulated, to be populated with contract, and the employees who do the of the joint venture. A few commenters administrative personnel only, or to be work for the separate legal entity may or also recommended that SBA should populated with its own separate may not have any present or future provide reasonable notice before it employees that are intended to perform connection to the prote´ge´ firm. In the sought access to such records. SBA contracts awarded to the joint venture. 8(a) BD context, the purpose is to disagrees. SBA’s Office of Inspector SBA explained that it is concerned that promote the business development of General must be able to have unlimited allowing populated joint ventures the firm that was admitted to the 8(a) access when investigating potential between a mentor and prote´ge´ would BD program, the prote´ge´ firm, not a violations of SBA’s regulations. In a not ensure that the prote´ge´ firm and its separate legal entity that is not itself a potential fraud case, providing notice employees benefit by developing new certified 8(a) Participant. In addition, could cause a destruction of records or expertise, experience, and past populated joint ventures create unique provide time for a party to create the performance. The separate joint venture problems in the HUBZone program. appearance of complying with entity would gain those things. If the HUBZone’s unique requirements with applicable requirements. As such, this individuals hired by the joint venture to regard to employees, principal office, final rule does not require SBA to perform the work under the contract did and residency make maintaining provide reasonable notice before seeking not come from the prote´ge´ firm, there is HUBZone status while participating in access to joint venture files, records and no guarantee that they would ultimately populated joint ventures difficult. In documents. SBA notes, however, that in end up working for the prote´ge´ firm determining whether an individual its normal oversight responsibilities not after the contract is completed. In such should be determined an employee, the related to any investigation of alleged a case, the prote´ge´ firm would have HUBZone program utilizes the totality wrongdoing, SBA would generally gained nothing out of that contract. The of the circumstances approach and provide reasonable notice.
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Place of Performance regardless of whether the mentor was Government in its ability to deter itself a HUBZone qualified SBC. wrongdoing. Regular reporting and In the case of Latvian Connection SBA received a significant number of monitoring of the limitations on General Trading and Construction LLC, comments on this provision. The subcontracting requirements will allow B–408633, Sept. 18, 2013, 2013 CPD ¶ commenters overwhelmingly supported all parties to know where the joint 224, GAO ruled that § 19.000(b) of the allowing a HUBZone qualified SBC that venture stands with respect to those Federal Acquisition Regulation (FAR) obtained an SBA-approved small requirements and what must be done to limits the application of FAR part 19 business mentor-prote´ge´ relationship to come into compliance in the future if (dealing with SBA’s small business be able to joint venture with its mentor the joint venture’s performance is below programs) to acquisitions conducted in on all contracts for which the prote´ge´ the required amount at any point in the United States (and its outlying individually qualified, including time. A contracting officer will be able areas). The basis for GAO’s ruling was HUBZone contracts. The commenters to more closely oversee the performance that SBA’s regulations were silent on felt that such a provision would allow of a contract where the reports show this issue and therefore, the more prote´ge´s to perform contracts that they inadequate performance to date. specific FAR regulation controlled. otherwise could not have obtained and As such, the final rule adopts the Heeding this advice, SBA promulgated truly provide them with expertise and proposed language requiring joint regulations to address this issue. past performance that would help them venture partners to annually report Specifically, SBA made wholesale to individually perform additional compliance to both the contracting changes to 13 CFR 125.2 on October 2, contracts in the future. officer and SBA. 2013. As a result, SBA issued a final The commenters expressed that they Tracking Joint Venture Awards rule recognizing that small business felt that the purposes of the HUBZone contracting could be used ‘‘regardless of program would be appropriately served The proposed rule announced that the place of performance.’’ 13 CFR by allowing non-HUBZone firms to act SBA was considering various methods 125.2(a) and (c). as mentors and joint venture with of tracking awards to the joint ventures permitted by SBA’s regulations. The The February 5, 2015 proposed rule prote´ge´ HUBZone firms because the possible approaches included: proposed to add similar language to HUBZone firm itself would be Requiring all joint ventures permitted §§ 124.501, 125.22(b), 126.600, and developed and would necessarily be by the regulations to include in their 127.500, thus specifically authorizing required to hire additional HUBZone names ‘‘small business joint venture,’’ contracting in the 8(a) BD, SDVO, employees if it sought to remain eligible and, if a mentor-prote´ge´ joint venture, to HUBZone and WOSB programs for future HUBZone contracts. include in their names ‘‘mentor-prote´ge´ regardless of the place of performance, Joint Venture Certifications and small business joint venture;’’ requiring where appropriate. Although SBA Performance of Work Reports (13 CFR contracting officers to identify awards as believes that the authority to use those 125.8, 125.18, 126.616, 127.506) going to small business joint ventures or programs in appropriate circumstances The proposed rule required all to mentor-prote´ge´ small business joint overseas already exists, the proposed partners to a joint venture agreement ventures; requiring SBCs to amend their rule merely sought to make that that perform a SDVO, HUBZone, WOSB, SAM entries to specify that they have authority clear. Nothing in the Small or small business set-aside contract to formed a joint venture; requiring each Business Act would prohibit the use of certify to the contracting officer and joint venture to get a separate DUNS those programs in appropriate SBA prior to performing any such number; or a combination of all of these circumstances overseas. SBA received a contract that they will perform the actions. SBA sought to ensure that few comments on this issue. The contract in compliance with the joint governmental agencies and members of commenters supported clarification of venture regulations and with the joint the public could track joint venture the current authority. The regulatory venture agreement. In addition, the awards, which would promote text merely highlights contracting parties to the joint venture are required transparency and accountability. SBA officers’ discretionary authority to use to report to the contracting officer and specifically asked for comments on how these programs where appropriate to SBA how they are meeting or have best to track awards to joint ventures. regardless of the place of performance. met the applicable performance of work SBA believes a tracking approach will HUBZone Joint Ventures (13 CFR requirements for each SDVO, HUBZone, deter fraudulent or improper conduct, 126.616) WOSB or small business set-aside and promote compliance with SBA’s contract they perform as a joint venture. regulations. The HUBZone program is a SBA received comments both SBA received numerous comments on community growth and development supporting and opposing this approach. these proposals both in support and in program in which businesses are One commenter suggested use of an opposition to the alternate approaches incentivized to establish principal office honor system for the reporting. SBA did contemplated. Several commenters locations in, and employ individuals not view this as a viable alternative. opposed the naming requirement, from, areas of chronically high Others believed that certifications in the expressing concern about the unemployment and/or low income in System for Award Management (SAM) administrative burden on the order to stimulate economic should be sufficient. Other commenters participating firms to change names, development. To further this purpose, supported the proposed approach as a establish duns numbers and meet other the HUBZone program regulations reasonable way to ensure compliance. compliance requirements in order to permitted a joint venture only between SBA believes that affirmative reporting meet this requirement. Other a HUBZone SBC and another HUBZone by the joint venture parties to both the commenters recommended that the SBC. In authorizing a mentor-prote´ge´ contracting officer and SBA will provide cleanest way to track awards to joint relationship for HUBZone qualified the necessary information to track the ventures would in fact be to require a SBCs, the proposed rule provided use and performance of joint ventures. joint venture to form a new entity in language to allow joint ventures for SBA also believes that the certification SAM and identity itself to be a joint HUBZone contracts between a and reporting requirements venture in SAM. Several commenters HUBZone prote´ge´ firm and its mentor, implemented in this rule will assist the suggested the SAM system adopt a
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certification for joint ventures, or to ensure consistency in the process, locations) than simply providing alternatively contracting officers and specifically sought comments as to adequate staff at one location. SBA designate in SAM that an award was whether that approach should be recognizes that the D/GC is responsible made to a joint venture. implemented. Finally, the for many other functions, and In response to the comments, SBA supplementary information to the understands several commenters’ first notes that any SAM certification proposed rule provided that SBA may concerns that mentor-prote´ge´ process is beyond SBA’s authority and institute certain ‘‘open’’ and ‘‘closed’’ applications might not be the highest outside the scope of this rule. SBA also periods for the receipt of mentor-prote´ge´ priority of that office. Therefore, SBA notes that current participants in the applications if the number of firms intends to establish a separate unit 8(a) BD program annually report to SBA seeking SBA to approve their mentor- within the Office of Business the joint venture awards they have prote´ge´ relationships becomes Development whose sole function received and how they are meeting the unwieldy. In such a case, SBA would would be to process mentor-prote´ge´ limitations on subcontracting then accept mentor-prote´ge´ applications applications and review the MPAs and requirements. To track small business only in ‘‘open’’ periods. the assistance provided under them joint venture awards, SBA could require SBA received a significant number of once approved. This final rule provides similar reporting. However, SBA does comments regarding applications for that this new unit will process and not seek to impose any unnecessary mentor-prote´ge´ relationships. make determinations with respect to all burdens on small business. With that in Commenters applauded SBA’s proposal small business MPAs, with the ultimate mind, SBA believes that additional to keep the 8(a) BD mentor-prote´ge´ decision to be made by the AA/BD or reporting is not necessary, but continues program separate from the small his/her designee. SBA believes that the to believe that some sort of joint venture business mentor-prote´ge´ program. efficiencies gained by having a identification is required. Thus, this Commenters also supported establishing dedicated staff for the small business final rule requires joint ventures to be a separate office to process applications mentor-prote´ge´ program will allow SBA separately identified in SAM so that for the small business mentor-prote´ge´ to timely process applications for awards to joint ventures can be properly program. The commenters were mentor-prote´ge´ status, and that the need accounted for. A joint venture must be concerned, however, about the for open and closed enrollment periods identified as a joint venture in SAM, administrative burden the additional will be reduced. Of course, it is still with a separate DUNS number and small business mentor-prote´ge´ program possible that the number of applications CAGE number than those of the will have on SBA’s resources. They felt could overwhelm the dedicated small individual parties to the joint venture. that the volume of firms seeking mentor- business mentor-prote´ge´ unit. If that is In addition, the Entity Type in SAM prote´ge´ relationships could excessively the case, open enrollment periods could must be identified as a joint venture, delay SBA’s processing of applications. still be a possibility. Several and the individual joint venture Commenters also opposed the proposal commenters suggested that SBA may partners should also be listed. to have open enrollment periods to have an enormous volume of receive small business mentor-prote´ge´ Applications for SBA’s Small Business applications, and others suggested applications. They thought that such a Mentor-Prote´ge´ Program (13 CFR 125.9) otherwise. SBA believes that additional process would cause significant delays information is needed before a decision As noted above, SBA proposed in allowing firms to benefit from the to control the acceptance of applications implementing one universal small mentor-prote´ge´ program. They also felt is necessary. If the need arises, SBA will business mentor-prote´ge´ program that open enrollment periods could provide advance notice to allow instead of a separate mentor-prote´ge´ cause firms to miss out on potential applicants the opportunity to program for each type of small business developmental procurement properly plan. (i.e., HUBZone, SDVO, WOSB program, opportunities if they had to wait several and small business). In addition, the months before they could apply to Mentors (13 CFR 124.520 and 125.9) proposed rule indicated that SBA participate in the program. If there were The proposed rule permitted any for- intended to maintain a separate mentor- open enrollment periods, then profit business concern that prote´ge´ program for eligible 8(a) BD commenters believed that firms should demonstrates a commitment and the Program Participants. The proposed rule be processed on a first come first served ability to assist small business concerns provided that a small business seeking basis, and different types of small to be approved to act as a mentor and a mentor-prote´ge´ relationship would be businesses should not be given priority receive the benefits of the mentor- required to submit an application to or processed first over other types of prote´ge´ relationship. SBA also proposed SBA and that SBA’s Director of small businesses. to limit mentors to for-profit business Government Contracting (D/GC) would SBA understands the concerns raised entities based on the language contained review and either approve or decline by the commenters. It is not SBA’s in the NDAA 2013. Section 1641 of the small business MPAs. SBA’s Associate intent to delay participation in the small NDAA 2013 added section 45(d)(1) of Administrator for BD (AA/BD) would business mentor-prote´ge´ program. In the Small Business Act, 15 U.S.C. continue to review and approve or order to reduce the processing time for 657r(d)(1), which defines the term decline mentor-prote´ge´ relationships in a small business mentor-prote´ge´ mentor to be ‘‘a for-profit business the 8(a) BD program. Under the application, SBA considered changing concern of any size.’’ In order to make proposed language, an eligible 8(a) BD final approval from the D/GC to six the 8(a) BD mentor-prote´ge´ program Program Participant could choose to senior SBA district directors. SBA consistent with the small business seek SBA’s approval of a mentor-prote´ge´ thought that six decision makers instead mentor-prote´ge´ program, SBA proposed relationship through the 8(a) BD of one might speed up the processing that mentors in the 8(a) BD mentor- program, or could seek a small business time for applications and eliminate the prote´ge´ program must be for profit mentor-prote´ge´ relationship through need for open enrollment periods. businesses as well. This was a change SBA’s mentor-prote´ge´ program for all However, such a structure could also for the 8(a) BD program, which small businesses. SBA announced it was cause inconsistent results and could previously allowed non-profit entities to considering having one office review require more overall resources (by be mentors. SBA felt that the change to and either approve or decline all MPAs requiring additional staff in six different the 8(a) BD program made sense because
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Congress intended the new mentor- of situations where SBA denied a large mentor for more than three prote´ge´ prote´ge´ program for small businesses to multi-national firm from being a mentor firms. They argued that some of the best be as similar to the 8(a) BD mentor- because one or more financial potential mentors could be large firms prote´ge´ program as possible. documents indicated a loss. These that were already mentoring other small A small number of commenters individuals believed SBA did not take businesses, and by limiting the number disagreed with having a small business the proper approach when considering of prote´ge´s that a mentor could have mentor-prote´ge´ program at all, and whether a business concern should be a could deprive a particular firm of a argued that the statutory authorities mentor. They stressed that SBA should mentor that could be an ideal partner. were discretionary and did not require look only at whether the proposed Conversely, several other commenters SBA to implement additional small mentor can deliver what it has said it agreed with SBA that allowing one firm business mentor-prote´ge´ programs. A will bring to the prote´ge´. They believed to mentor an unlimited number of few of these commenters also felt that if that anything beyond that was not prote´ge´ firms could allow a large there were such a program, the mentors necessary. SBA agrees that the ‘‘good business to unduly benefit from should be limited to other small financial condition’’ requirement has contracts that are intended to primarily businesses. They expressed the view caused some confusion. SBA believes benefit small business. One commenter that individual small businesses could that the key issue is whether a proposed believed that allowing three prote´ge´s at be harmed competing against joint mentor can meet its obligations under the same time for one mentor was too ventures in which a large business its MPA. If a proposed mentor can fulfill much, and recommended restricting it mentor was a partner. Although SBA those obligations and has the financial to two prote´ge´ firms at one time. SBA understands that the small business wherewithal to provide all of the continues to believe that there must be mentor-prote´ge´ programs authorized by business development assistance to the a limit on the number of firms that one the Jobs Act and the NDAA 2013 are prote´ge´ firm as described in its MPA, business, particularly one that is other discretionary, SBA believes that they SBA should not otherwise care about than small, can mentor. Although SBA will serve an important developmental the proposed mentor’s financial believes that the small business mentor- function that will enable many small condition. SBA wants to ensure that the prote´ge´ program will certainly afford businesses to grow to be able to prote´ge´ firm receives needed business business development opportunities to independently perform procurements development assistance through the many small businesses, SBA remains that they otherwise would not have mentor-prote´ge´ relationship. If that can concerned about large businesses been able to perform. In addition, the be demonstrated, SBA will be satisfied benefitting disproportionately. If one vast majority of commenters supported with the arrangement. As such, this firm could be a mentor for an unlimited a small business mentor-prote´ge´ final rule changes the requirement that number (or even a larger limited program and many of those comments a mentor have good financial condition number) of prote´ge´s, that firm would believed that it would be critical in to one requiring that the mentor must receive benefits from the mentor-prote´ge´ helping them to advance and be able to demonstrate that it can fulfill its program through joint ventures and perform larger and more complex obligations under the MPA. possible stock ownership far beyond the contracts on their own. SBA agrees with benefits to be derived by any individual the majority of commenters on this issue In addition, the proposed rule provided that a mentor participating in prote´ge´. In addition, the 8(a) BD and this final rule implements a small program in effect at the time that the ´ ´ any SBA-approved mentor-prote´ge´ business mentor-protege program. Jobs Act and the NDAA 2013, also Because the language of section 45(d)(1) program would generally have no more limited mentors to having no more than of the Small Business Act, 15 U.S.C. than one prote´ge´ at a time. It also three prote´ge´ firms. Since those 657r(d)(1), specifies a mentor in the provided that SBA could authorize a authorities permitted SBA to implement small business mentor-prote´ge´ program concern to mentor more than one a small business mentor-prote´ge´ to be ‘‘a for-profit business concern of prote´ge´ at a time where it can program as similar as possible to the any size’’ and section 45(a)(2) of the demonstrate that the additional mentor- 8(a) BD mentor-prote´ge´ program, it Small Business Act, 15 U.S.C. prote´ge´ relationship would not makes sense that SBA should limit any 657r(a)(2), requires the mentor-prote´ge´ adversely affect the development of mentor to a total of three prote´ge´ firms. program for small businesses to be either prote´ge´ firm (e.g., the second firm Therefore, this final rule adopts the ‘‘identical to the [8(a) BD] mentor- may not be a competitor of the first prote´ge´ program . . . as in effect on the firm). The rule also proposed, however, language of the proposed rule, which date of enactment of this section . . .,’’ that no firm could be a mentor of more permits any mentor to have up to a total ´ ´ which authorized large business than three prote´ge´s in the aggregate at of three protege firms at one time. One mentors, this final rule authorizes only one time under either of the mentor- commenter requested that SBA clarify other than small businesses that are prote´ge´ programs authorized by that a mentor can have no more than ´ ´ organized for profit to be mentors. § 124.520 or § 125.9. A mentor could three protege firms at one time, not Specifically, the final rule authorizes choose to have: Up to three prote´ge´s in three firms in the mentor’s entire any ‘‘concern,’’ regardless of size, to be the 8(a) BD program; or up to three existence. SBA believes that is a mentor, and the term ‘‘concern’’ has prote´ge´s in the small business program; adequately spelled out in the regulatory historically been defined in SBA’s size or one or more prote´ge´s in one program text and does not further clarify that regulations to mean a business entity and one or more in another program, but provision in this final rule. organized for profit. no more than three prote´ge´s in the Finally, the proposed rule provided The proposed rule also required a aggregate. SBA received comments on that a prote´ge´ in the small business firm seeking to be a mentor to both sides of this issue. A few mentor-prote´ge´ program may not demonstrate that it ‘‘possesses a good commenters believed that all SBA become a mentor and retain its prote´ge´ financial condition.’’ Several should care about is whether a mentor status. That proposal was patterned off commenters urged SBA to clarify what can adequately provide needed business the 8(a) BD mentor-prote´ge´ program. it means to possess good financial development assistance to a proposed SBA received several comments condition. In addition, during the tribal prote´ge´. If they could, these commenters opposing this proposal. The consultations, several individuals spoke believed that a specific firm could be a commenters felt that firms that have
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themselves been prote´ge´s may be in the qualified as small for the particular type to a potential joint venture with its best position to act as mentors. In of work for which a mentor-prote´ge´ mentor other than its status as a small addition, they argued that just because relationship is sought, even if the firm business. The intent of allowing joint a firm can act as a mentor to smaller or no longer qualified as small for its ventures between a prote´ge´ firm and its less experienced firms does not mean primary business activity. These mentor is to provide a prote´ge´ firm the that they too don’t need help getting to commenters believed that there would opportunity to further develop its the next level. They did not believe that be no harm in allowing such a mentor- expertise and enhance its ability to it would make sense to require a current prote´ge´ relationship because the prote´ge´ independently perform similar contracts prote´ge´ to terminate the MPA with its firm would still have to qualify as a in the future. The mentor-prote´ge´ mentor before it will be approved as a small business for any contract program is not intended to enable firms mentor to another small business opportunity requiring status as a small that have outgrown a particular size concern. The commenters believed that business that it sought. In other words, standard to find another industry in in both the 8(a) BD and small business if SBA approved a mentor-prote´ge´ which they have no expertise or past mentor-prote´ge´ programs a firm should relationship that focused on assisting a performance merely to be able to be permitted to be both a prote´ge´ and firm to gain access to or expand its continue to receive additional contracts mentor in appropriate circumstances. experience in a particular industry or as a small business. As long as the firm SBA agrees with this position; thus, this NAICS code where the proposed prote´ge´ can demonstrate how the mentor- final rule provides that SBA may firm qualified as a small business for the prote´ge´ relationship is a logical authorize a small business to be both a size standard corresponding to that progression for the firm and will further prote´ge´ and a mentor at the same time NAICS code but not for the size develop current capabilities, SBA where the firm can demonstrate that the standard corresponding to its primary believes that a mentor-prote´ge´ second relationship will not compete or industry, the prote´ge´ firm could form a relationship may be appropriate. Thus, otherwise conflict with the first mentor- joint venture with its mentor and be the final rule provides that a concern prote´ge´ relationship. considered small for a contract must qualify as small for the size standard corresponding to its primary Prote´ge´s (13 CFR 124.520 and 125.9) opportunity only where the prote´ge´ firm qualified as small. It could not take that NAICS code or identify that it is seeking ´ ´ In order to qualify as a protege, the mentor-prote´ge´ relationship, form a business development assistance with proposed rule required a business joint venture and be considered small respect to a secondary NAICS code and concern to qualify as small for the size for contract opportunities in the qualify as small for the size standard standard corresponding to its primary prote´ge´’s primary industry if the prote´ge´ corresponding to that NAICS code. NAICS code. This was a departure for did not qualify as small for that NAICS The proposed rule provided that a the current 8(a) BD mentor-prote´ge´ code. prote´ge´ participating in either of the program, which required an 8(a) mentor-prote´ge´ programs generally Program Participant to: Have a size that SBA believes that consistency would have no more than one mentor at is less than half the size standard between the 8(a) BD mentor-prote´ge´ a time. However, it authorized a prote´ge´ corresponding to its primary NAICS program and the small business mentor- to have two mentors where the two code; or be in the developmental stage prote´ge´ program is critical, particularly relationships would not compete or of its 8(a) program participation; or not where this final rule authorizes an 8(a) otherwise conflict with each other and have received an 8(a) contract. SBA mentor-prote´ge´ relationship to the prote´ge´ demonstrates that the received a significant number of transition to a small business mentor- second relationship pertains to an comments supporting the change to prote´ge´ relationship when the 8(a) unrelated, secondary NAICS code, or loosen the requirements to qualify as a prote´ge´ graduates from or otherwise the first mentor does not possess the prote´ge´ for the 8(a) BD mentor-prote´ge´ leaves the 8(a) BD program. Therefore, specific expertise that is the subject of program. These commenters supported SBA believes that it does not make the MPA with the second mentor. The consistency between the two programs sense to have different rules regarding comments supported this provision and, and believed that allowing more mature who can qualify as a prote´ge´ for the two therefore, SBA adopts it in this final small businesses to participate as mentor-prote´ge´ programs. As such, SBA rule. prote´ge´s in the 8(a) BD mentor-prote´ge´ does not agree with the commenters In addition, § 125.9(c)(1) of the program would facilitate more dynamic who recommended that SBA continue proposed rule required that SBA verify developmental assistance and to limit prote´ge´s in the 8(a) BD mentor- that a firm qualifies as a small business strengthen the contractor base for prote´ge´ program only to Participants before approving that firm to act as a government procurements. Several whose size was less than half the size prote´ge´ in a small business mentor- commenters also felt that the proposed standard corresponding to their primary prote´ge´ relationship. SBA was change made the requirement clearer to industry. Moreover, SBA feels that any attempting to make eligibility for the understand and implement. Conversely, small business could gain valuable small business mentor-prote´ge´ program a few commenters did not support business development assistance similar to that of the 8(a) BD mentor- changes to the size of the prote´ge´ for the through the mentor-prote´ge´ program. prote´ge´ program. Just as only firms that 8(a) BD mentor-prote´ge´ program. These For this reason, SBA agrees with the have been certified to be eligible to commenters believed that the 8(a) commenters who recommended that a participate in the 8(a) BD program and mentor-prote´ge´ program should not be firm that does not qualify as small for verified to meet at least one of the three made available to larger, or successful, its primary NAICS code should be able requirements set forth in the prior 8(a) or experienced 8(a) Participants, and to form a mentor-prote´ge´ relationship in BD regulations could be a prote´ge´, the that allowing participation by firms that a secondary NAICS code for which it proposed rule would have permitted are close to exceeding their applicable does qualify as small. However, SBA only those firms that have been size standard would thwart the purpose would not authorize mentor-prote´ge´ affirmatively determined to be small to of the program. SBA also received relationships in secondary NAICS codes qualify as prote´ge´s for the small several comments recommending that a where the firm had never performed any business mentor-prote´ge´ program. firm should be able to form a mentor- work in that NAICS code previously or Several commenters believed that such prote´ge´ relationship as long as it where the prote´ge´ would bring nothing a requirement was overly burdensome.
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These commenters did not believe that relationship could do so by notification, departments and agencies, conceivably size and 8(a) BD status were without applying to and receiving other agency-specific mentor-prote´ge´ comparable. They argued that size has approval from SBA to do so. In light of programs for small business would not always been a self-certification process that change, the final rule also deletes be needed. In the proposed rule, SBA that is open to review and protest in § 124.520(d)(5) as unnecessary. That specifically requested comments as to connection with any individual provision provided that SBA would not whether other Federal mentor-prote´ge´ procurement, and that the same should approve an 8(a) BD mentor-prote´ge´ programs should continue after the one- be true in the mentor-prote´ge´ context. relationship where the proposed prote´ge´ year grace period expires. SBA They felt that SBA should be able to rely firm had less than six months remaining understands that many of the agency- on the size self-certification of a firm in its 8(a) program term. Because SBA specific mentor-prote´ge´ programs seeking to qualify as small for a small will now permit an 8(a) prote´ge´ to incentivize mentors to utilize their business mentor-prote´ge´ relationship. transfer its mentor-prote´ge´ relationship prote´ge´s as subcontractors. For instance, The commenters believed that a firm to a small business mentor-prote´ge´ some agencies provide additional approved to be a small business prote´ge´ relationship after it leaves the 8(a) BD evaluation points to a large business would not gain any undue benefit from program (provided the firm continues to submitting an offer on an unrestricted the program merely by entering a qualify as a small business), it does not procurement where the business has an mentor-prote´ge´ relationship. If a firm make sense that SBA would not approve active MPA, where the business has that was approved to be a prote´ge´ was a mentor-prote´ge´ relationship for a used the prote´ge´ firm as a subcontractor not in fact small and was awarded a proposed 8(a) prote´ge´ that has less than previously, or where the mentor and joint venture contract with its mentor six months remaining in its program prote´ge´ are submitting an offer as a joint based solely on its status as a prote´ge´, term. SBA will give such a firm the venture. In addition, some mentor- of course that would be objectionable. option of pursuing an 8(a) mentor- prote´ge´ programs give additional credit However, because the size protest prote´ge´ relationship during its last six to a large business mentor toward its procedures permit any interested party months in the 8(a) BD program, and subcontracting plan goals when the to protest the size of any apparent then transferring that relationship to a mentor uses the prote´ge´ as a successful offeror, the commenters small business mentor-prote´ge´ subcontractor on the mentor’s prime believed that a prote´ge´ that was not relationship when the prote´ge´ firm contract(s) with the given agency. SBA’s small would ultimately be found leaves the 8(a) BD program, or pursuing mentor-prote´ge´ programs assume more ineligible for award of the contract and, a small business mentor-prote´ge´ of a prime contractor role for prote´ge´s, thus, would not unduly benefit from its relationship during that same time but would also encourage subcontracts mentor-prote´ge´ relationship. SBA frame. from mentors to prote´ge´s as part of the developmental assistance that prote´ge´s agrees, and as long as it is clear that Mentor-Prote´ge´ Programs of Other receive from their mentors. Because one SBA’s approval of a mentor-prote´ge´ Departments and Agencies (13 CFR or more mentor-prote´ge´ programs of relationship does not amount to a 125.10) formal determination of size eligibility, other agencies ultimately may not be As noted above, section 1641 of the SBA believes that the size protest continued after SBA’s various mentor- NDAA 2013 provided that a Federal procedures would in fact be sufficient to prote´ge´ programs are finalized, SBA department or agency cannot carry out protect the integrity of the program. requested comments as to whether the its own agency specific mentor-prote´ge´ subcontracting incentives authorized by The proposed rule provided that a program for small businesses unless the mentor-prote´ge´ programs of other ´ ´ protege firm that graduates or otherwise head of the department or agency agencies should specifically be leaves the 8(a) BD program but submitted a plan for such a program to incorporated into SBA’s mentor-prote´ge´ continues to qualify as a small business SBA and received the SBA programs. may transfer its 8(a) mentor-prote´ge´ Administrator’s approval of the plan. SBA received only a few comments relationship to a small business mentor- The NDAA 2013 specifically excluded regarding this proposed new section. prote´ge´ relationship. Several the Department of Defense’s mentor- These commenters agreed with the commenters supported this proposal as prote´ge´ program, but included all other statutory provisions in questioning the a natural extension of SBA’s current mentor-prote´ge´ programs of utility of other Federal mentor-prote´ge´ implementation of a small business other agencies. Under its provisions, a programs. Their only concern was mentor-prote´ge´ program. A few department or agency that is currently whether SBA would have the necessary commenters sought clarification, conducting a mentor-prote´ge´ program resources to handle mentor-prote´ge´ however, as to whether the transfer from (except the Department of Defense) may applications for the entire government. an 8(a) BD mentor-prote´ge´ relationship continue to operate that program for one SBA is working to assure that it can to a small business mentor-prote´ge´ year but must then go through the SBA adequately process mentor-prote´ge´ relationship would be automatic or approval process in order for the applications, but, as noted above, if the whether the prote´ge´ firm would have to program to continue after one year. number of firms seeking SBA to approve apply and again receive SBA approval. Thus, in order to continue to operate their mentor-prote´ge´ relationships It was not SBA’s intent to require a firm any current mentor-prote´ge´ program becomes unwieldy, SBA may institute to apply to transfer its 8(a) BD mentor- beyond one year after SBA’s mentor- certain ‘‘open’’ and ‘‘closed’’ periods for prote´ge´ relationship to a small business prote´ge´ regulations are final, each the receipt of further mentor-prote´ge´ mentor-prote´ge´ relationship. SBA department or agency would be required applications. In such a case, SBA would intended that a firm merely inform SBA to obtain the SBA Administrator’s then accept mentor-prote´ge´ applications of its intent to transfer its mentor- approval. These statutory provisions only in ‘‘open’’ periods. prote´ge´ relationship. There would be no were proposed to be implemented in Assuming that many agencies will SBA review or approval required of new § 125.10 of SBA’s regulations. decide not to continue their own such a transfer. As such, this final rule Because the SBA’s 8(a) BD and small mentor-prote´ge´ programs, one adopts the language of the proposed rule business mentor-prote´ge´ programs will commenter recommended that SBA and adds clarifying language that a firm apply to all Government small business should incorporate the subcontracting seeking to transfer its mentor-prote´ge´ contracts, and thus to all Federal incentives found in other mentor-
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prote´ge´ programs to ensure that these Several commenters sought BD program (which has ownership useful benefits are not eliminated. clarification of the requirement that the restrictions on firms in the same or Although SBA believes that it is up to project manager of a joint venture similar line of business), a large individual procuring agencies whether between a prote´ge´ firm and its SBA- business may currently own a to provide subcontracting incentives for approved mentor must be an employee substantial ownership interest in a small any specific procurement, SBA also of the prote´ge´ firm. These comments business (up to 49% where one believes that these incentives should be pointed out that many times a firm that individual owns the remaining 51%) authorized and used, where appropriate. is awarded a contract will hire many, if without a finding of affiliation, and that As such, this final rule identifies not all, of the individuals currently the affiliation rules are sufficient to subcontracting incentives as a possible performing the work under the contract protect against a large business from benefit to be provided by procuring for a different firm. These commenters unduly benefitting from small business activities in appropriate circumstances. recommended that SBA clarify that an contracting programs. After further The final rule authorizes procuring individual identified as the project consideration, SBA agrees. During the activities to provide incentives in the manager need not be an employee of the mentor-prote´ge´ relationship, the prote´ge´ contract evaluation process to a firm prote´ge´ firm at the time the joint venture firm is shielded from a finding of that will provide significant makes an offer, as long as there is a affiliation where a large business mentor subcontracting work to its SBA- commitment by the individual to work owns 40% of the prote´ge´. Once the approved prote´ge´ firm. SBA does not for the prote´ge´ if the joint venture wins mentor-prote´ge´ relationship ends, any intend that a mentor receive an the award. SBA agrees and has clarified protection from a finding of affiliation incentive where it lists the prote´ge´ as a that the individual identified as the also ends. As such, if the large business subcontractor that would perform project manager of the joint venture mentor’s 40% ownership interest is merely ministerial functions that would need not be an employee of the prote´ge´ controlling (or deemed to be controlling not enhance the prote´ge´’s business firm at the time the joint venture under SBA’s affiliation rules), the two development. Any such incentive submits an offer, but, if he or she is not, firms will be affiliated and the former would be at the discretion of the there must be a signed letter of intent prote´ge´ would not qualify as a small procuring activity. that the individual commits to be business. For this reason, there is no need to require a former mentor to Benefits of Mentor-Prote´ge´ employed by the prote´ge´ firm if the joint divest itself of its 40% ownership Relationships (13 CFR 124.520 and venture is the successful offeror. The interest in the former prote´ge´ after the 125.9) final rule also clarifies that the individual identified as the project mentor-prote´ge´ relationship ends. If it As with the 8(a) BD program, under manager cannot be employed by the does not divest, the former prote´ge´ will the proposed small business mentor- mentor and become an employee of the be found to be ineligible for any contract prote´ge´ program, a prote´ge´ may joint prote´ge´ firm for purposes of as a small business where the 40% venture with its SBA-approved mentor performance under the joint venture. ownership interest causes affiliation and qualify as a small business for any SBA is concerned that such an under SBA’s size rules. As such, this Federal government contract or ‘‘employee’’ of the prote´ge´ has no ties to final rule does not add any language subcontract, provided the prote´ge´ the prote´ge´, is not bound to stay with requiring a mentor to divest itself of its qualifies as small for the size standard the prote´ge´ after performance of the ownership interest in a prote´ge´ firm corresponding to the NAICS code contract is complete, and could easily once the mentor-prote´ge´ relationship assigned to the procurement. ends. Commenters supported this provision. go back to the mentor at that time. If that They believed that it provides happens, the business development of Written Mentor-Prote´ge´ Agreement (13 ´ ´ incentives to firms to become mentors the protege firm would be diminished. CFR 124.520 and 125.9) and encourages meaningful business Consistent with the 8(a) BD program, The key to any mentor-prote´ge´ development assistance to prote´ge´s on the proposed rule permitted a mentor to relationship is the benefits to be any small business contracts for which a small business to own an equity received by the proposed prote´ge´ firm they qualify as small. As such, SBA interest of up to 40% in the prote´ge´ firm from the proposed mentor. It is essential adopts the proposed language in this in order to raise capital for the prote´ge´ that such benefits be identified as final rule. firm. SBA requested comments as to clearly and specifically as possible. To This means that a joint venture whether this 40% ownership interest this end, the proposed rule required that between a prote´ge´ and its approved should be a temporary interest, being all MPAs be in writing, identifying mentor in the small business mentor- authorized only as long as the mentor- specifically the benefits intended to be prote´ge´ program will be deemed to be a prote´ge´ relationship exists, or whether it derived by the projected prote´ge´ firms. small business concern for any Federal should be able to survive the Commenters universally supported contract or subcontract. It does not termination of the mentor-prote´ge´ requiring a written MPA and that the mean that such a joint venture relationship. SBA was concerned that benefits to be provided through a MPA affirmatively qualifies for any other allowing a mentor to own 40% of a must be clearly identified. Specifically, small business program. For example, a small business prote´ge´ after the mentor- they felt that the proposed provision joint venture between a small business prote´ge´ relationship ends may allow far- requiring that there be a detailed prote´ge´ firm and its SBA-approved reaching influence by large businesses timeline for the delivery of the mentor will be deemed a small business that act as mentors and enable them to assistance in the MPA was critical to concern for any Federal contract or receive long-term benefits from ensuring that assistance was timely subcontract for which the prote´ge´ programs designed to assist only small provided to prote´ge´ firms. They qualified as small, but the joint venture businesses. Several commenters understood that without clear and will qualify for a contract reserved or believed that mentors should not be identifiable deliverables set forth in set-aside for eligible 8(a) BD, HUBZone required to divest themselves of their MPAs, both prote´ge´ firms and SBA SBCs, SDVO SBCs, or WOSBs only if ownership interest in a prote´ge´ firm would lack the ability to require the prote´ge´ firm meets the particular once the mentor-prote´ge´ relationship mentors to provide specific business program-specific requirements as well. ends. They noted that, outside the 8(a) development assistance. One
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commenter noted that the proposed assistance as part of the assistance that The mentor-prote´ge´ program should be regulatory language identified will be provided through the 8(a) BD or a boost to a small business’s subcontracts as a benefit that a prote´ge´ small business mentor-prote´ge´ development that enables the small can receive through its MPA. The relationship. Therefore, SBA has business to independently perform commenter agreed that subcontracts are clarified the regulatory text to better larger and more complex contracts in an important developmental benefit, but implement its intent in this final rule. the future. It should not be a crutch that requested clarification that business The proposed rule also provided that prevents small businesses from seeking development assistance can be gained SBA will review a mentor-prote´ge´ and performing those larger and more by a prote´ge´ both by receiving a relationship annually to determine complex contracts on their own. SBA subcontract from its mentor and by whether to approve its continuation for understands that it may take longer than subcontracting specific work to its another year. SBA intended to evaluate three years to develop a meaningful mentor. SBA agrees that a subcontract in the relationship and determine whether mentor-prote´ge´ relationship. Therefore, either direction can be beneficial to the the mentor provided the agreed-upon the final rule will continue to authorize prote´ge´ and that a subcontract from a business development assistance, and two three-year MPAs with different prote´ge´ to its mentor should not, by whether the assistance provided appears mentors, but will allow each to be itself, give rise to a finding of affiliation to be worthwhile. SBA also proposed to extended for a second three years as something outside the MPA. As such, limit the duration of a MPA to three provided the prote´ge´ has received the this final rule clarifies that a subcontract years and to permit a prote´ge´ to have agreed-upon business development from a prote´ge´ to a mentor can be one three-year MPA with one entity and assistance and will continue to receive developmental assistance authorized by one three-year MPA with another entity, additional assistance. SBA intends to a MPA. or two three-year MPAs (successive or limit all small businesses, including 8(a) otherwise) with the same entity. SBA The proposed rule also required a Participants, to having two mentors. invited comments regarding whether firm seeking approval to be a prote´ge´ in Although an 8(a) Participant can three years is an appropriate length of ´ ´ either the 8(a) BD or small business transfer its 8(a) mentor-protege time and whether SBA should allow a mentor-prote´ge´ programs to identify any relationship to a small business mentor- mentor and prote´ge´ to enter into an prote´ge´ relationship after it leaves the other mentor-prote´ge´ relationship it has additional MPA upon the expiration of 8(a) BD program, it can have only two through another Federal agency or SBA the original agreement. Several mentor-prote´ge´ relationships in total. If and provide a copy of each such MPA commenters did not believe that three it transfers its 8(a) mentor-prote´ge´ to SBA. The proposed rule required that years was an appropriate length to relationship to a small business mentor- the MPA submitted to SBA for approval authorize a mentor-prote´ge´ relationship. prote´ge´ relationship after it leaves the must identify how the assistance to be A few commenters disagreed with any program, it may enter into one provided by the proposed mentor is specific limit on the number of years additional mentor-prote´ge´ relationship. different from assistance provided to the that a MPA may be in place. They It cannot enter into two additional small prote´ge´ through another mentor-prote´ge´ believed that as long as the prote´ge´ business mentor-prote´ge´ relationships. relationship, either with the same or a continues to qualify as a small business The proposed rule also solicited different mentor. Several commenters and to receive developmental comments on clarifying language not opposed this requirement. They thought assistance, and the mentor is capable of currently contained in the 8(a) mentor- that the requirement might cause and actually providing the assistance, prote´ge´ regulations authorizing the disputes as to whether the proposed then the mentor-prote´ge´ relationship continuation of a mentor-prote´ge´ MPA was different enough from a MPA should be allowed to continue. A few relationship where control or ownership with another agency. One commenter other commenters thought that three of the mentor changes during the term questioned whether a MPA of another years was too short and recommended of the MPA. Specifically, the proposed agency could be transferred into the a longer length. They believed that in rule provided (for the 8(a) BD and small SBA’s 8(a) BD or small business mentor- many instances it takes several years in business mentor-prote´ge´ programs) that prote´ge´ program. This commenter order for both the mentor and prote´ge´ to if control of the mentor changes reasoned that if one or more mentor- understand how best to work with each (through a stock sale or otherwise), the prote´ge´ programs of other agencies cease other, and three years is not sufficient previously approved mentor-prote´ge´ because of the new Government-wide to allow that process to develop. They relationship may continue provided SBA small business mentor-prote´ge´ felt that the proposed rule would, in that, after the change in control, the program, a firm should be able to use effect, limit a prote´ge´ to one mentor mentor expresses in writing to SBA that that agreement, or at least the assistance throughout its life as a small business. it acknowledges the MPA and that it that had been committed but not yet Although the rule proposed to authorize continues its commitment to fulfill its provided through the agreement, in the two three-year MPAs with two separate obligations under the agreement. SBA’s program. SBA continues to mentors, the commenters felt that Commenters supported this provision, believe that assistance that has already because it takes a few years to get one and it is not changed in this final rule. been provided or pledged in a MPA of mentor-prote´ge´ relationship to operate Size of 8(a) Joint Venture (13 CFR another agency should not be used as smoothly, most prote´ge´s would elect to 124.513). the basis for an SBA MPA. The intent keep the first MPA for a second three is that a prote´ge´ firm gain business years instead of seeking a new three- The rule also proposed to amend development assistance that it otherwise year MPA with a different mentor. § 124.513 to clarify that interested would not be able to obtain. SBA agrees, SBA believes that the mentor-prote´ge´ parties may protest the size of an SBA- however, that if certain specified program serves an important business approved 8(a) joint venture that is the assistance was identified in a MPA of development function for 8(a) apparent successful offeror for a another agency, but that assistance had Participants and other small businesses. competitive 8(a) contract. This change not yet been provided, a firm should be However, SBA does not believe that any alters the rule expressed in Size Appeal able to choose to terminate the mentor- mentor-prote´ge´ relationship should last of Goel Services, Inc. and Grunley/Goel prote´ge´ relationship with the other indefinitely (i.e., for as long as the Joint Venture D LLC, SBA No. SIZ–5320 agency and use the not yet provided prote´ge´ qualifies as a small business). (2012), which concluded that the size of
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an SBA-approved 8(a) joint venture not make any sense. There is no 8(a) and small business joint ventures to could not be protested because SBA certainty that the joint venture will SDVO joint ventures (§ 125.18(b)(5)), had, in effect, determined the joint submit an offer, and, if it does, that it HUBZone joint ventures (§ 126.616(f)), venture to qualify as small when it will be the apparent successful offeror. and WOSB joint ventures (§ 127.506(f)). approved the joint venture pursuant to Section 124.507(e) provides that within Recertification When an Affiliate § 124.513(e). SBA’s decision to five working days after being notified by Acquires Another Concern (13 CFR authorize a joint venture between a a contracting officer of the apparent 121.404(g)(2)(ii)(A)) current 8(a) Program Participant and successful offeror, SBA will verify the another party by its Office of Business 8(a) eligibility of that entity. If the In the final rule, SBA is clarifying its Development was never intended to act apparent successful offeror is a joint position that recertification is required as a formal size determination. Only venture and SBA has not yet approved when an affiliate of an entity acquires SBA’s Office of Government Contracting the joint venture, the five-day period for another concern. Under SBA’s general may issue formal size determinations. determining general eligibility would principles of affiliation, if a firm is an SBA received a few comments then apply to the joint venture also. If affiliate it means that one entity controls supporting this proposed change, the SBA district office has asked for or has the power to control the other or believing that the size protest clarifications or changes with respect to a third party controls both, and SBA procedures should be available with the joint venture and has not received aggregates the receipts or employees of respect to any apparent successful them by the end of this five-day period the concern in question and its offeror in a competitive 8(a) (and the contracting officer has not affiliates. In our view, an acquisition by procurement, including joint ventures. granted SBA additional time to conduct an affiliate must be deemed an Accordingly, this revision makes clear an eligibility determination), SBA will acquisition by the concern in question. that unsuccessful offerors on a have to say that it was unable to verify Otherwise, firms could easily competitive 8(a) set-aside contract may the eligibility of the apparent successful circumvent SBA’s recertification rules challenge the size of an apparently offeror joint venture. by simply creating affiliates to acquire successful joint venture offeror. or merge with other firms. The clear One commenter encouraged SBA to Agency Consideration of the Past intent of SBA’s recertification rule was add additional language to clarify that Performance and Capabilities of Team to require recertification when an entity the only issue that may be challenged is Members (13 CFR 124.513(f), 125.8(e), exceeds the size standard due to size, and not the underlying terms, 125.18(b)(5), 126.616(f), and 127.506(f)) acquisition, merger or novation, and conditions, or structure of the joint In the proposed rule, SBA proposed there is no public policy rationale for venture agreement itself. SBA believes that an Agency must consider the past not requiring recertification based on such a clarification is not necessary. As performance of the members of a joint the whether it is the entity in question part of a size protest, an SBA Office of venture when considering the past that acquires another concern, or an Government Contracting Area Office performance of an entity submitting an affiliate of the entity in question. The will review a joint venture agreement to offer as a joint venture. SBA proposed bottom line is the entity, including its make sure that the agreement complies this for both 8(a) joint ventures affiliates, no longer qualifies as small with § 124.513, but in no way would (proposed § 124.513(f)) and small and agencies should not receive future that office seek or have the authority to business joint ventures (proposed small business credit for dollars invalidate certain terms or conditions of § 125.8(e)). This proposal was in awarded to the concern in question, or the joint venture. response to agencies that were its affiliates. A few commenters also sought considering only the past performance Establishing Social Disadvantage for the clarification of SBA’s regulations of a joint venture entity, and not 8(a) BD Program (13 CFR 124.103) regarding when SBA will determine the considering the past performance of the eligibility of an 8(a) joint venture. They very entities that created the joint SBA also proposed amendments to questioned whether approval would venture entity. Where an agency § 124.103(c) in order to clarify that an occur as part of the offer and acceptance required the specific joint venture entity individual claiming social disadvantage process or at some later point in time. itself to have experience and past must present a combination of facts and SBA’s regulations provide that SBA performance, it made it extremely hard evidence which by itself establishes that approval of an 8(a) joint venture must for newly established (and impossible the individual has suffered social occur prior to the award of an 8(a) for first-time) joint venture partners to disadvantage that has negatively contract. § 124.513(e)(1). That being the demonstrate positive past performance. impacted his or her entry into or case, requiring an eligibility Each partner to a joint venture may have advancement in the business world. determination for a joint venture as part individually performed on one or more Under the proposed rule, SBA could of the offer and acceptance process similar contracts previously, but the disregard a claim of social disadvantage would make that requirement joint venture would not be credited with where a legitimate alternative ground meaningless. SBA believes that a district any experience or past performance of for an adverse action exists and the office has flexibility to determine the its individual partners. Commenters individual has not presented evidence eligibility of a particular 8(a) joint generally supported these changes. A that would render his/her claim any venture depending upon its workload. few commenters recommended that more likely than the alternative ground. As long as that determination occurs SBA clarify that the same policy should A statement that a male co-worker any time prior to award, SBA has also apply to joint ventures in the received higher compensation or was complied with the regulatory SDVO, HUBZone and WOSB programs, promoted over a woman does not requirement. For a competitive 8(a) arguing that joint ventures in those amount to an incident of social procurement, SBA does not receive an programs could also be hurt where a disadvantage by itself. Additional facts offering letter on behalf of any particular procuring agency did not consider the are necessary to establish an instance of 8(a) Participant or potential offeror. As experience and past performance of the social disadvantage. A statement that a such, requiring SBA to determine the individual partners to a joint venture. male co-worker received higher eligibility of a potential joint venture SBA agrees. As such, this final rule adds compensation or was promoted over a offeror at the time of acceptance would similar language to that proposed for woman and that the woman had the
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same or superior qualifications and Control of an 8(a) BD Applicant or same or similar industry as the primary responsibilities would constitute an Participant industry classification of the applicant incident of social disadvantage. Section 124.106 of SBA’s regulations or Participant. A few commenters opposed this currently provides that one or more 8(a) BD Application Processing (13 CFR proposed change. They did not believe disadvantaged individuals must control 124.202, 124.203, 124.104(b), and that it would be appropriate to require the daily business operations of an 8(a) 124.108(a)) BD applicant or Participant. In proof of certain events that are not SBA’s regulations require applicants determining whether the experience of easily documented. One commenter to the 8(a) BD program to submit certain one or more disadvantaged individuals noted that SBA currently permits specified supporting documentation, claiming to manage the applicant or individuals to prove social disadvantage including financial statements, copies of Participant is sufficient for SBA to with affidavits and sworn statements signed Federal personal and business determine that control exists, SBA’s attesting to events in their lives that tax returns and individual and business regulations require that the individuals they believe were motivated by bias or bank statements. The regulations also must have managerial experience ‘‘of discrimination, and questioned how an required that an applicant must submit the extent and complexity needed to run individual could in fact present a signed IRS Form 4506T, Request for the concern.’’ Although the regulations additional evidence to prove his or her Copy or Transcript of Tax Form, in all also provide that a ‘‘disadvantaged claim of alleged discriminatory conduct. cases. A commenter questioned the SBA believes that these commenters individual need not have the technical need for every applicant to submit IRS misunderstood SBA’s intent. SBA does expertise or possess a required license Form 4506T. SBA agrees that this form not intend that individuals provide to be found to control an applicant or is not needed in every case. SBA always additional supporting documentation or Participant,’’ several comments has the right to request any applicant to evidence. Rather, SBA is merely looking indicated that there is confusion as to submit specific information that may be for the individual’s statement to contain what type of managerial experience is needed in connection with a specific a more complete picture. As noted in needed to satisfy SBA’s requirements. application. As long as SBA’s the proposed rule, the example of a man SBA did not intend to require in all regulations clearly provide that SBA being promoted over a woman without instances that a disadvantaged may request any additional documents additional facts does not lead to a more individual must have managerial SBA deems necessary to determine likely than not conclusion of experience in the same or similar line of whether a specific applicant is eligible discriminatory conduct. If the man had work as the applicant or Participant. A to participate in the 8(a) BD program, 10 years of experience to the woman’s middle manager in a multi-million SBA will be able to request that a 3 years of experience, there could be a dollar large business or a vice president particular firm submit IRS Form 4506T legitimate reason for his promotion over in a concern qualifying as small but where SBA believes it to be appropriate. the woman. However, if she can say that nevertheless substantial may have As such, this final rule eliminates the the two had similar experience and gained sufficient managerial experience requirement from § 124.203 that an in a totally unrelated business field. The qualifications and yet he was promoted applicant must submit IRS Form 4506T words ‘‘of the extent and complexity and she was not, her claim of in very case, and clarifies that SBA may needed to run the concern’’ were meant discriminatory conduct would have request additional documentation when to look at the degree of management merit. All SBA is looking for is the necessary. experience, not the field in which that complete picture, or additional facts, In addition, a commenter noted that experience was gained. For example, an that would make an individual’s claim SBA’s regulations provide that individual who has been a middle of bias or discriminatory conduct more applications for the 8(a) BD program manager of a large aviation firm for 20 likely than not. Absent any evidence to must generally be filed electronically, years and can demonstrate overseeing the contrary, SBA would continue to and questioned the need to allow hard the work of a substantial number of rely on affidavits and sworn statements, copy applications at all. The commenter employees may be deemed to have and as long as those statements was concerned that there is a greater managerial experience of the extent and possibility for one or more attachments presented a clear picture, they would be complexity needed to run a five- to be misplaced when an applicant files sufficient to establish an instance of employee applicant firm whose primary a hard copy application, that SBA staff social disadvantage. industry category was in emergency could incorrectly transpose information SBA is not intending to raise the management consulting even though when putting it into an electronic evidentiary burden placed on an 8(a) that individual had no technical format, and that in today’s business applicant above the preponderance of knowledge relating to the emergency world there is no excuse for not having the evidence standard. SBA is not management consulting field. SBA access to the internet and SBA’s seeking definitive proof, but rather believes, however, that more specific electronic application. SBA agrees. As additional facts to support the claim industry-related experience may be such, this final rule amends § 124.202 to that a negative outcome (e.g., failure to needed in appropriate circumstances to require applications to be filed receive a promotion or needed training) ensure that the disadvantaged electronically, with the understanding was based on discriminatory conduct individual(s) claiming to control the that certain supporting documentation instead of one or more legitimate non- day-to-day operations of the firm do so may also be required under § 124.203. discriminatory reasons. It is not SBA’s in fact. This would be particularly true Section 124.203 also requires that an intent to disbelieve an applicant. In fact, where a non-disadvantaged owner (or applicant must provide a wet signature SBA intends to rely on personal former owner) who has experience from each individual claiming social narratives to support claims of social related to the industry is actively disadvantage status. Several disadvantage. As long as those claims involved in the day-to-day management commenters questioned the need for are complete and are not contradictory, of the firm. In order to clarify SBA’s ‘‘wet’’ signatures, arguing that this SBA will depend solely on the intent, this rule adds language to requirement placed a significant burden narratives, and consider them to be § 124.106 to specify that management on applicants. These commenters noted instances of social disadvantage. experience need not be related to the that an applicant that files an electronic
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8(a) BD application must also sign and financial information to SBA. SBA since size standards are established on manually send a wet signature to SBA. believes that the written narrative on a national basis. Thus, the final rule They argued that such a requirement economic disadvantage is an provides that an entity-owned business did not make sense, as long as the unnecessary burden imposed on concern is not subject to the broad individual(s) upon whom eligibility is applicants to the 8(a) BD program. exemption to affiliation set forth in 13 based take responsibility for any SBA’s determination as to whether an CFR part 124 where one or more entity- information submitted on behalf of the individual qualifies as economically owned firms are found to have obtained, applicant. SBA agrees and has disadvantaged is based solely on an or are likely to obtain, a substantial eliminated the requirement for a wet analysis of objective financial data unfair competitive advantage on a signature. Any electronic signing relating to the individual’s net worth, national basis in a particular NAICS protocol must ensure the Agency is able income and total assets. As such, this code with a particular size standard. to specifically identify the individual final rule eliminates the requirement In making this assessment, SBA will making the representation in an that each individual claiming economic consider a firm’s percentage share of the electronic system. As long as applicants disadvantage must submit a narrative national market and other relevant know that the individual(s) upon whom statement in support of his or her claim factors to determine whether a firm is eligibility is based take responsibility of economic disadvantage. dominant in a specific six-digit NAICS for the accuracy and truthfulness of any code with a particular size standard. Substantial Unfair Competitive information submitted on behalf of the SBA will review Federal Procurement Advantage Within an Industry Category applicant, an electronic, uploaded Data System (FPDS) data to compare the (13 CFR 124.109, 124.110, and 124.111) signature should be sufficient. firm’s share of the industry as compared SBA’s regulations also provided that Pursuant to section 7(j)(10)(J)(ii)(II) of to overall small business participation if during the processing of an the Small Business Act, 15 U.S.C. in that industry to determine whether application, SBA receives adverse 636(j)(10)(J)(ii)(II), ‘‘[i]n determining the there is an unfair competitive information regarding possible criminal size of a small business concern owned advantage. The rule does not conduct by the applicant or any of its by a socially and economically contemplate a finding of affiliation principals, SBA would automatically disadvantaged Indian tribe (or a wholly where an entity-owned concern appears suspend further processing of the owned business entity of such tribe) [for to have obtained an unfair competitive application and refer it to SBA’s Office purposes of 8(a) BD program entry and advantage in a local market, but remains of Inspector General (OIG) for review. 8(a) BD contract award], each firm’s size competitive, but not dominant, on a Commenters believed that both of these shall be independently determined national basis. provisions unnecessarily delayed SBA’s without regard to its affiliation with the Management of Tribally-Owned 8(a) processing of 8(a) applications. These tribe, any entity of the tribal Program Participants (13 CFR 124.109) commenters believed that referral to government, or any other business SBA’s OIG should not occur in every enterprise owned by the tribe, unless The proposed rule sought to add instance, such as where a minor the Administrator determines that one language to § 124.109(c)(4) specifying infraction occurred many years ago, but or more such tribally owned business that the individuals responsible for the that SBA should have the discretion to concerns have obtained, or are likely to management and daily operations of a refer matters to SBA’s OIG in obtain, a substantial unfair competitive tribally-owned concern cannot manage appropriate instances. SBA is advantage within an industry category.’’ more than two Program Participants at committed to reducing the processing For purposes of the 8(a) BD program, the the same time. This language is taken time for 8(a) applications and agrees term ‘‘Indian tribe’’ includes any Alaska directly from section 7(j)(11)(B)(iii)(II) of that mandatory OIG referral may be Native village or regional or village the Small Business Act (15 U.S.C. unnecessary. SBA agrees that an corporation (within the meaning of the 636(j)(11)(B)(iii)(II)), but does not application evidencing a 20 year old Alaska Native Claims Settlement Act). currently appear in SBA’s 8(a) BD disorderly conduct offense for an 15 U.S.C. 637(a)(13). SBA’s regulations regulations. The proposed rule provided individual claiming disadvantaged have extended this broad exclusion that SBA believes it is necessary to status when that individual was in from affiliation to the other entity- incorporate this provision into the college should not be referred to the OIG owned firms authorized to participate in regulations to more fully apprise where that is the only instance of the 8(a) BD program (i.e., firms owned tribally-owned 8(a) applicants and anything concerning the individual’s by Native Hawaiian Organizations Participants of the control requirements good character. Such an offense has (NHOs) and Community Development applicable to them. Those commenting nothing to do with the individual’s Corporations (CDCs)). See §§ 124.109(a), on this provision understood the change business integrity. In addition, even if it 124.109(c)(2)(iii), 124.110(b), and and supported it. Thus, this final rule did, an offense that was that old (with 124.111(c). The proposed rule attempted adopts the proposed language. no other instances of such misconduct) to provide guidance as to how SBA will Native Hawaiian Organizations (NHOs) could also be determined not to be determine whether a firm has obtained (13 CFR 124.110) relevant for a present good character or is likely to obtain ‘‘a substantial determination, and thus, not be one that unfair competitive advantage within an The proposed rule also sought to add caused SBA to suspend an 8(a) industry category.’’ language to § 124.110(d) to clarify that application and refer the matter to the SBA received a significant number of the members or directors of an NHO OIG for review. This final rule provides comments supporting the clarifying need not have the technical expertise or necessary discretion to SBA to allow language of the proposed rule. possess a required license to be found SBA to determine when to refer a matter Commenters agreed that the term to control an applicant or Participant to the OIG. ‘‘industry category’’ should be defined owned by the NHO. Rather, the NHO, In addition, SBA’s regulations provide by six digit NAICS code, as that through its members and directors, must that each individual claiming economic application would be consistent with merely have managerial experience of disadvantage must describe such other similar terms in SBA’s regulations. the extent and complexity needed to run economic disadvantage in a narrative They also agreed that an industry the concern. As with individually statement, and must submit personal category should be looked at nationally owned 8(a) applicants and Participants,
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individual NHO members may be Organization’’ to mean ‘‘any community the AA/BD believes that circumstances required to demonstrate more specific service organization serving Native of the Native Hawaiian community may industry-related experience in Hawaiians in the State of Hawaii which have changed. appropriate circumstances to ensure (A) is a nonprofit corporation . . ., (B) Sole Source 8(a) Awards that the NHO in fact controls the day- is controlled by Native Hawaiians, and to-day operations of the firm. This is (C) whose business activities will Pursuant to § 8(a)(1)(D) of the Small particularly true where a non- principally benefit such Native Business Act, 8(a) procurements that disadvantaged owner (or former owner) Hawaiians.’’ 15 U.S.C. 637(a)(15). The exceed $7.0 million for those assigned a who has experience related to the crucial point is that an NHO must be a manufacturing NAICS code and $4.0 industry is actively involved in the day- community service organization that million for all others must generally be to-day management of the firm. benefits Native Hawaiians. It is certainly competed among eligible 8(a) Program Commenters supported this change as a understood that an NHO must serve Participants. 15 U.S.C. 637(a)(1)(D). needed clarification to the control economically disadvantaged Native However, pursuant to section 303 of the requirements for NHOs. They believed Hawaiians, but nowhere is there any Business Opportunity Reform Act of 1988 (Pub. L. 100–656), 102 Stat. 3853, that this change will allow NHOs with hint that economically disadvantaged 3887–3888, 8(a) Program Participants significant management experience to Native Hawaiians must control the owned by Indian tribes and Alaska participate in and branch out into NHO. The statutory language merely Native Corporations (ANCs) are exempt diverse industries, and that such a requires that an NHO must be controlled from those competitive threshold change will have a positive effect on the by Native Hawaiians. In order to Native Hawaiian community. The final limitations. As such, a Participant maximize benefits to the Native owned by an Indian tribe or ANC can rule adopts the language as proposed. Hawaiian community, SBA believes that The Small Business Act authorizes receive an 8(a) sole source award in any it makes sense that an NHO should be small business concerns owned by amount under the Small Business Act. able to attract the most qualified Native ‘‘economically disadvantaged’’ NHOs to Section 811 of the National Defense Hawaiians to run and control the NHO. participate in the 8(a) BD program. 15 Authorization Act for Fiscal Year 2010 If the most qualified Native Hawaiians U.S.C. 637(a)(4)(A)(i)(III). Neither the (NDAA 2010) (Section 811), Public Law cannot be part of the team that controls statute nor its legislative history 111–84, imposed justification and an NHO because they may not qualify provides any guidance on how to approval requirements on any 8(a) sole individually as economically determine whether an NHO is source contract that exceeds $20 economically disadvantaged. Currently, disadvantaged, SBA believes that is a million. 123 Stat. 2190, 2405. § 124.110(c)(1) provides that in disservice to the Native Hawaiian Specifically, section 811 provides that determining whether an NHO is community. As such, this final rule the head of an agency may not award a economically disadvantaged, SBA will changes the way that SBA will sole source 8(a) contract for an amount look at the individual economic status determine whether an NHO qualifies as exceeding $20 million ‘‘unless the of the NHO’s members. The NHO must economically disadvantaged. It makes contracting officer for the contract establish that a majority of its members NHOs similar to Indian tribes by justifies the use of a sole-source contract qualify as economically disadvantaged requiring an NHO to present in writing’’ and ‘‘the justification is under the rules that apply to individuals information relating to the economic approved by the appropriate official as set forth in § 124.104. The proposed disadvantaged status of Native designated to approve contract awards rule solicited comments as to whether Hawaiians, including the for dollar amounts that are comparable this is the most sensible approach to unemployment rate of Native Hawaiians to the amount of the sole-source establishing economic disadvantage for and the per capita income of Native contract. . .’’ Id. This provision has NHOs. Hawaiians. The difference between been implemented in FAR 19.808–1(a) SBA received a significant number of tribes and NHOs, however, is that one and 6.303–1(b), which currently provide comments from the Native Hawaiian tribe serves and intends to benefit one that SBA cannot accept for negotiation community on this issue, including distinct group of people (i.e., its specific a sole-source 8(a) contract that exceeds several commenters who appeared at tribal members), and multiple NHOs $22 million unless the requesting one or more of the tribal consultations. may be established to serve and benefit agency has completed a justification in These commenters recommended that the same group of people (i.e., the entire accordance with the requirements of NHOs should establish economic Native Hawaiian community). As with FAR 6.303. The FAR recently increased disadvantage in the same way that tribes economic disadvantage for tribes, once the $20 million amount to $22 million currently do for the 8(a) BD program: an NHO establishes that it is in order to take into account inflation. that is, by providing information economically disadvantaged in Several commenters to the proposed relating to members, including the tribal connection with the application of one rule noted that SBA’s regulations do not unemployment rate, the per capita firm owned and controlled by the NHO take into account section 811 or FAR income of tribal members, and the because the intended beneficiaries are 19.808–1, and requested that SBA percentage of tribal members below the economically disadvantaged, it need not amend its regulations to be consistent poverty level. For the Native Hawaiian reestablish its economic disadvantage with the FAR. This final rule merely community, this would mean that an for another firm owned by the NHO. In incorporates the section 811 and FAR NHO would have to describe the addition, unless a second NHO intends requirements into SBA’s regulations. In individuals to be served by the NHO to serve and benefit a different addition, it requires a procuring agency and provide the economic data population than that of the first NHO that is offering a sole source regarding those individuals. SBA agrees that established its economic requirement that exceeds $22 million that basing the economic disadvantage disadvantage status, the second NHO for award through the 8(a) BD to provide status of an NHO on individual Native also need not submit information to a statement in its offering letter that the Hawaiians who control the NHO does establish its economic disadvantage. Of necessary justification and approval not seem to be the most appropriate way course, in any case, the AA/BD may under the FAR has occurred. SBA will to do so. The Small Business Act request an NHO to reestablish/establish not question and does not need to defines the term ‘‘Native Hawaiian its economic disadvantage status where obtain a copy of the justification and
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approval, but merely ensure that it has supplementary information to the eligible to participate in the 8(a) BD been done. proposed rule also requested comments program (i.e., it can meet the potential SBA believes that there is some as to whether an alternative that would for success requirement simply by confusion in the 8(a) and procurement permit SBA to change a Participant’s having the entity make a firm written communities regarding the requirements primary industry automatically, based commitment to support the operations of section 811. There is a misconception on FPDS data, should be considered of the applicant), the applicant has wide by some that there can be no 8(a) sole instead. latitude in selecting its primary NAICS source awards that exceed $22 million. SBA received a vast number of code. If the applicant selects a primary That is not true. Nothing in either comments on this particular provision, NAICS code merely to avoid the section 811 or the FAR prohibits 8(a) both as formal written comments and as primary NAICS code of another sole source awards to Program part of the various tribal consultations. Participant owned by the entity and has Participants owned by Indian tribes and In fact, this was the most heavily no intention of doing any work in that ANCs above $22 million. All that is commented on provision of the NAICS code, SBA believes that it should required is that a contracting officer proposed rule. Commenters focused on be able to change that Participant’s justify the award and have that the alternative to allow SBA to change primary NAICS code. Without such justification approved at the proper a Participant’s primary industry ability, there would be no requirement level. In addition, there is no statutory unilaterally and strenuously opposed that the newly admitted Participant or regulatory requirement that would that alternative. Commenters presented actually perform most, or any, work in support prohibiting 8(a) sole source many reasons why they opposed any the six digit NAICS code selected as its awards above any specific dollar automatic change in Participants’ primary business classification in its amount, higher or lower than $22 primary industry category. They felt that application after being certified to million. it would inappropriately impose a participate in the 8(a) BD program. A As noted above, 8(a) procurements significant change on a firm based on firm could circumvent the intent of that exceed $7.0 million for those inherently incomplete date in FPDS, SBA’s regulations by selecting a primary assigned a manufacturing NAICS code which does not take all revenue streams business classification that is different and $4.0 million for all others must into consideration. Commenters also from the primary business classification generally be competed among eligible noted that firms are not limited to of any other Participant owned by that 8(a) Program Participants. This final pursuing work only in their primary same entity merely to get admitted to rule also amends § 124.506(a)(2)(ii) NAICS code, and naturally pursue work regarding the competitive threshold in multiple NAICS codes. They believed the 8(a) BD program, and then perform amounts to make it consistent with the that it would be contrary to the business the majority, or even all, of its work in inflationary adjustment made to the development purposes of the program to the identical primary NAICS code as FAR. As such, the final rule replaces the discourage firms from branching out another Participant owned by the entity. outdated $6.5 million competitive into several related industry categories. That should not be permitted to occur. threshold for procurements assigned a In addition, commenters noted that the However, SBA agrees with the manufacturing NAICS, and replaces it work to be performed for a particular commenters that SBA should not with the $7.0 million competitive requirement may often be classified change a Participant’s primary NAICS threshold currently contained in under more than one NAICS code. code without discussion back and forth § 19.805–1(a)(2) of the FAR. Commenters argued that if there are between SBA and the Participant. SBA several reasonable NAICS codes that merely wants to ensure that the Change in Primary Industry Participant has made and will continue Classification (13 CFR 124.112) could be assigned to a requirement and a procuring agency selects one code to make good faith efforts to receive The proposed rule sought to authorize (that happens to be a Participant’s contracts (either Federal or non-Federal) SBA to change the primary industry secondary NAICS code) instead of in the NAICS code it identified as its classification contained in a another (which is the Participant’s primary NAICS code. For example, Participant’s business plan where the primary NAICS code), the Participant where a Participant details contract greatest portion of the Participant’s total should not be penalized for not opportunities under its primary NAICS revenues during a three-year period performing work in its identified code that it submitted offers for in the have evolved from one NAICS code to primary NAICS code. Commenters also last year, but was not successful in another. It also provided discretion to felt that a unilateral change by SBA winning, and its concrete plans to SBA in deciding whether to change a would deny a Participant due process continue to seek additional Participant’s primary industry rights and argued that there definitely opportunities in that NAICS code, SBA classification because SBA recognized should be dialogue between SBA and would not change the Participant’s that whether the greatest portion of a the Participant before any change is primary industry classification. SBA firm’s revenues is derived from one made to the Participant’s primary understands the cyclical nature of NAICS code, as opposed to one or more NAICS code. Finally, although several business and that different factors may other NAICS codes, is a snapshot in commenters supported SBA’s belief that affect what type of contract time that is ever changing. The rule also it needed the ability to change a opportunities are available. SBA does proposed to require SBA to notify the Participant’s primary NAICS code in not expect a Participant to do no Participant of its intent to change the appropriate circumstances, a few business when there is a downward turn Participant’s primary industry different commenters opposed any in the industry identified as its primary classification and afford the Participant change to a Participant’s primary NAICS NAICS code. Where SBA believes that a the opportunity to submit information code. Participant’s revenues for a secondary explaining why such a change would be SBA continues to believe that it NAICS code exceed those of its inappropriate. Although the language of should have the ability to change a identified primary NAICS code over the the proposed rule specifically Participant’s primary NAICS code in Participant’s last three completed fiscal authorized the opportunity for a appropriate circumstances. Because an years, SBA would notify the Participant Participant to dispute any intent to entity-owned applicant need not have a of its belief and ask the firm for input change its primary NAICS code, the track record of past performance to be as to what its primary NAICS code is.
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At that point, SBA would be looking for recommendation and incorporates it owned Participant to report benefits as a reasonable explanation as to why the into this final rule. part of its annual review submission. identified primary NAICS code should SBA believes it is more appropriate that 8(a) BD Program Suspensions (13 CFR remain as the Participant’s primary this information be submitted as part of 124.305) NAICS code. The Participant should a Participant’s submission of its annual identify: all non-Federal work that it has SBA proposed to add two additional financial statements pursuant to performed in its primary NAICS code; bases for allowing a Participant to elect § 124.602. SBA wants to make clear that any efforts it has made to obtain to be suspended from 8(a) BD program benefits reporting should not be tied to contracts in the primary NAICS code; all participation: Where the Participant’s continued eligibility, as may be contracts that it was awarded that it principal office is located in an area assumed where such reporting is part of believes could have been classified declared a major disaster area or where SBA’s annual review analysis. The under its primary NAICS code, but there is a lapse in Federal proposed rule changed the timing of which a contracting officer assigned appropriations. The changes were benefits reporting from the time of a another reasonable NAICS code; and intended to allow a firm to suspend its Participant’s annual review submission any other information that it believes term of participation in the 8(a) BD to the time of a Participant’s annual has a bearing on why its primary NAICS program in order to not miss out on financial statement submission. SBA code should not be changed despite contract opportunities that the firm believes that the data collected by performing more work in another might otherwise have lost due to a certain Participants in preparing their NAICS code. disaster or a lapse in Federal funding. financial statements submissions may SBA received only comments in also help them report some of the The proposed rule also provided that support of these two new bases to allow if SBA determined that a change in a benefits that flow to the native or other a Participant to elect suspension from community. The regulatory change will Participant’s primary NAICS code was 8(a) BD program participation. As such, continue to require the submission of appropriate and that Participant was an the final rule adopts the language the data on an annual basis but within entity-owned firm that could not have contained in the proposed rule. Upon 120 days after the close of the concern’s two Participants in the program with the the request of a certified 8(a) firm in a fiscal year instead of as part of the same primary NAICS code, the entity major declared disaster area, SBA will annual submission. (tribe, ANC, NHO, or CDC) would be be able to suspend the eligibility of the required to choose which Participant firm for up to a one year period while Commenters supported this change, should leave the 8(a) BD program if the the firm recovers from the disaster to believing that it was important to change in NAICS codes caused it to ensure that it is able to take full remove any doubt that benefits have two Participants with the same advantage of the 8(a) BD program, rather reporting should not in any way be tied primary NAICS code. Several than being impacted by lack of capacity to continued eligibility. Although a few commenters opposed requiring an entity or contracting opportunities due to commenters opposed the reporting of to terminate the continued participation disaster-induced disruptions. During benefits flowing back to the native or of one of its 8(a) BD Participants where such a suspension, a Participant would other community entirely, most it would have two Participants having not be eligible for 8(a) BD program commenters understood that this the same primary NAICS code after SBA benefits, including set-asides, however, requirement was generated in response changes the primary NAICS of one of but would not ‘‘lose time’’ in its to a GAO audit and was intended to the firms. Instead, these commenters program term due to the extenuating support the continued need for the recommended that the second, newer circumstances wrought by a disaster. tribal 8(a) program. The final rule firm be permitted to continue to Similarly, this rule will allow a adopts the proposed language. participate in the 8(a) BD program, but Participant to elect to suspend its Reverse Auctions (13 CFR 125.2 and not be permitted to receive any participation in the 8(a) BD program 125.5) additional 8(a) contracts in the six-digit where: Federal appropriations for one or NAICS code that is the primary NAICS more Federal departments or agencies SBA also proposed to amend code of the other 8(a) Participant. SBA have expired without being extended §§ 125.2(a) and 125.5(a)(1) to address agrees that that would be a more via continuing resolution or other reverse auctions. Specifically, SBA suitable approach. The second firm is means and no new appropriations have proposed to reinforce the principle that the one that should not have been able been enacted (i.e., during a lapse in all of SBA’s regulations, including those to have been admitted to the 8(a) BD appropriations); SBA has previously relating to set-asides and referrals for a program to perform most of its work in accepted an offer for a sole source 8(a) Certificate of Competency, apply to a NAICS code that was the primary award on behalf of the Participant; and reverse auctions. With a reverse auction, NAICS code of another Participant award of the 8(a) sole source contract is the Government is buying a product or owned by the same entity. Allowing the pending. A Participant could not elect a service, but the businesses are bidding entity to choose to end the participation partial suspension of 8(a) BD program against each other, which tends to drive of the first firm, which may already be benefits. If it elects to be suspended the price down (hence the name reverse near the end of its program term, while during a lapse in Federal auction). In a reverse auction, the allowing the second firm to continue to appropriations, the Participant would be bidders actually get to see all of the receive 8(a) contracts in a primary ineligible to receive any new 8(a) BD other bidders’ prices and can ‘‘outbid’’ NAICS code that it never should have program benefits during the suspension. them by offering a lower price. had would not appear to be much of a Although SBA believes that the small deterrent to others to continue this Benefits Reporting Requirement (13 CFR business rules currently apply to reverse practice, and would not in any way 124.602) auctions, the proposed rule intended to penalize the second Participant that The proposed rule included an make it clear to contracting officials that made no reasonable attempt to perform amendment to the time frame for the there are no exceptions to SBA’s small work in the NAICS code that it reporting of benefits for entity-owned business regulations for reverse identified as its primary NAICS code to Participants in the 8(a) BD program. auctions. SBA received no adverse SBA. Thus, SBA adopts the Previously, SBA required an entity- comments in response to this provision.
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As such, the final rule makes no conform to SBA’s interpretation or unrestricted to set-aside contracting changes from the proposed rule. intent. might result in competition among 2. What are the alternatives to this fewer total bidders, although there will Reconsideration of Decisions of SBA’s rule? be more small businesses eligible to OHA (13 CFR 134.227) As noted above in the supplementary submit offers. The added competition The proposed rule added clarifying information, this rule seeks to for many of these procurements could language to § 134.227(c) to recognize implement the Jobs Act of 2010 and result in lower prices to the Government SBA as a party that may file a request NDAA 2013 authorities by creating one for procurements reserved for SBCs, for reconsideration in an OHA new mentor-prote´ge´ program in which HUBZone SBCs, WOSB concerns, and proceeding in which it has not any small business could participate SDVO SBCs, although SBA cannot previously participated. The final rule instead of implementing four new quantify this benefit. To the extent that ´ ´ adopts the language as proposed. This separate small business mentor-protege more than two thousand SBCs could provision is intended to alter the rule programs (i.e., having a separate mentor- become active in the small business ´ ´ expressed in Size Appeal of Goel protege program for SDVO SBCs, mentor-prote´ge´ program, this might Services, Inc. and Grunley/Goel JVD HUBZone SBCs, WOSB concerns, and entail some additional administrative LLC, SBA No. SIZ–5356 (2012), which all other small business concerns, in costs to the Federal Government addition to the current mentor-prote´ge´ held that SBA could not request associated with additional bidders for program for 8(a) BD Participants). SBA reconsideration where SBA did not Federal small business procurement decided to implement one program for appear as a party in the original appeal. opportunities. all small businesses because SBA The SBA believes that it is axiomatic believed it would be easier for the small The small business mentor-prote´ge´ that SBA is always an interested party business and acquisition communities program may have some distributional regarding an appeal of an SBA decision to use and understand. The statutory effects among large and small to OHA, and that SBA may request authority for this rule specifically businesses. Although SBA cannot reconsideration of an OHA appeal mandates that the new mentor-prote´ge´ estimate with certainty the actual decision even where SBA chose not to programs be modeled on the existing outcome of the gains and losses among or otherwise did not file a response to mentor-prote´ge´ program for small small and large businesses, it can the initial appeal petition. business concerns participating in the identify several probable impacts. There Compliance With Executive Orders 8(a) BD program. Thus, to the extent may be a transfer of some Federal 12866, 13563, 12988, and 13132, the practicable, SBA has attempted to adopt contracts from large businesses to SBC Paperwork Reduction Act (44 U.S.C. the regulations governing the 8(a) prote´ge´s. However, large business Ch. 35), and the Regulatory Flexibility mentor-prote´ge´ program in establishing mentors will be able to joint venture Act (5 U.S.C. 601–612) the mentor-prote´ge´ program for SBCs. with prote´ge´ firms for contracts reserved 3. What are the potential benefits and for small business and be eligible to Executive Order 12866 costs of this regulatory action? perform contracts that they would The Office of Management and Budget The final rule enhances the ability of otherwise be ineligible to perform. Large (OMB) has determined that this small business concerns to obtain larger businesses may have fewer Federal prime contracts that would be normally proposed rule is a significant regulatory prime contract opportunities as Federal out of the reach of these businesses. The action for purposes of Executive Order agencies decide to set aside more small business mentor-prote´ge´ program 12866. Accordingly, the next section Federal contracts for SBCs, SDVO SBCs, should allow all small businesses to tap contains SBA’s Regulatory Impact HUBZone SBCs, and WOSB concerns. into the expertise and capital of larger Analysis. This is not a major rule, In addition, some Federal contracts may firms, which in turn should help small however, under the Congressional be awarded to HUBZone prote´ge´s business concerns become more Review Act. instead of large businesses since these knowledgeable, stable, and competitive firms may be eligible for an evaluation in the Federal procurement arena. Regulatory Impact Analysis adjustment for contracts when they SBA estimates that under the final compete on a full and open basis. This 1. Is there a need for the regulatory rule, approximately 2,000 SBCs, will action? become active in the small business transfer may be offset by a greater The final rule implements section mentor-prote´ge´ program, and prote´ge´ number of contracts being set aside for 1347(b)(3) of the Small Business Jobs firms may obtain Federal contracts SBCs, SDVO SBCs, HUBZone SBCs, and Act of 2010, Public Law 111–240, 124 totaling possibly $2 billion per year. WOSB concerns. SBA cannot estimate Stat. 2504, which authorizes the Agency SBA notes that these estimates represent the potential distributional impacts of to establish mentor-prote´ge´ programs for an extrapolation from data on the these transfers with any degree of SDVO SBCs, HUBZone SBCs, and percentage of 8(a) BD Program precision. WOSB concerns, modeled on the Participants with signed MPAs and joint The small business mentor-prote´ge´ Agency’s mentor-prote´ge´ program for venture agreements, and are based on program is consistent with SBA’s small business concerns participating in the dollars awarded to SBCs in FY 2012 statutory mandate to assist small programs under section 8(a) of the Small according to data retrieved from the businesses, and this regulatory action Business Act (15 U.S.C. 637(a)). In Federal Procurement Data System— promotes the Administration’s addition, the final rule implements Next Generation (FPDS–NG). With SBCs objectives. One of SBA’s goals in section 1641 of the NDAA 2013, Public able to compete for larger contracts and support of the Administration’s Law 112–239, which authorized SBA to thus a greater number of contracts in objectives is to help individual small establish a mentor-prote´ge´ program for general, Federal agencies may choose to businesses, including SDVO SBCs, all small business concerns. SBA is also set aside more contracts for competition HUBZone SBCs, and WOSB concerns, updating its rules to clarify areas where among small businesses, SDVO SBCs, succeed through fair and equitable small business concerns may have been HUBZone SBCs, and WOSB concerns, access to capital and credit, Federal confused or where OHA’s rather than using full and open contracts, and management and interpretations of SBA rules do not competition. The movement from technical assistance.
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Executive Order 13563 Executive Order 13132 and reviewing each collection of A description of the need for this For the purpose of Executive Order information. SBA solicited public comments on regulatory action and the benefits and 13132, SBA has determined that this these collections of information at the costs associated with this action, final rule will not have substantial proposed rule stage. Except as discussed including possible distributional direct effects on the States, on the below, there was very little feedback on impacts that relate to Executive Order relationship between the national these changes. SBA will submit the final 13563, is included above in the government and the States, or on the information collections to OMB for Regulatory Impact Analysis. distribution of power and responsibilities among the various approval. Executive Order 12866 1. Title and Description: Mentor- levels of government. Therefore, SBA Prote´ge´ Agreement [SBA Form 2459]. In an effort to engage interested has determined that this final rule has The agreement between a mentor and parties in this action, SBA met with no federalism implications warranting prote´ge´ will include an assessment of representatives from various agencies to preparation of a federalism assessment. the prote´ge´’s needs and goals; a obtain their feedback on SBA’s description of the how the mentor proposed mentor-prote´ge´ program. For Paperwork Reduction Act intends to assist prote´ge´ in meeting its example, SBA participated in a For purposes of the Paperwork goals; and the timeline for delivery of Government-wide meeting involving Reduction Act, 44 U.S.C. Chapter 35, SBA has determined that this final rule such assistance. Office of Small and Disadvantaged Need and Purpose: The agreement would impose new reporting Business Utilization (OSDBU) must be submitted to SBA for review requirements. These collections of representatives responsible for mentor- and approval, to help the Agency to ´ ´ information include the following: (1) protege programs in their respective determine whether the proposed Information necessary for SBA to agencies. It was generally agreed upon assistance will enhance the ´ ´ evaluate the success of a mentor-prote´ge´ that SBA’s proposed mentor-protege development of the prote´ge´ and not relationship; (2) information necessary program would complement the already merely further the interest of the for SBA to determine whether a existing Federal programs due in part to mentor. The information will also be prospective mentor is capable of the differing incentives offered to the beneficial to SBA’s efforts to reduce carrying out its responsibilities to assist mentors under the various programs. fraud, waste, and abuse in Federal SBA also presented proposed small the prote´ge´ firm under the proposed ´ ´ contracting programs. business mentor-prote´ge´ programs to mentor-protege agreement; (3) OMB Control Number: New businesses in thirteen cities in the U.S. information necessary for SBA to Collection. and sought their input as part of the Jobs evaluate compliance with performance Description and Estimated Number of Act tours. In developing the proposed of work requirements, including work Respondents: This information will be rule, SBA considered all input, performed by the joint venture; and (4) collected from small business prote´ge´s suggestions, recommendations, and information detailing the proposed pursuant to § 125.9(e). SBA estimates relevant information obtained from relationship between the mentor and this number to be 2,000. industry groups, individual businesses, prote´ge´. The rule also eliminates the Estimated Response Time: 1 hour. and Federal agencies. collection of information currently Total Estimated Annual Hour Burden: Finally, SBA also conducted a series contained in SBA’s regulations. 2,000. of tribal consultations pursuant to Specifically, the final rule eliminates Overall, commenters agreed that the Executive Order 13175, Tribal the requirement that each individual collection of information identified in Consultations. SBA conducted three in- claiming economic disadvantage for the proposed rule is necessary for the person tribal consultations (in purposes of 8(a) eligibility must submit proper performance of SBA’s functions, Washington, DC on February 26, 2015, a narrative statement in support of his and would not be overly burdensome in Tulsa, Oklahoma on April 21, 2015, or her claim of economic disadvantage. for affected business concerns. and in Anchorage, Alaska on April 23, SBA eliminated this requirement 2. Title and Description: Mentor- 2015) and two telephonic tribal because SBA believes it to be Prote´ge´ Financial and Other consultations (one on April 7, 2015, and burdensome and unnecessary. Information. [Form number not a Hawaii/Native Hawaiian Organization Finally, the final rule also makes a applicable] The final rule requires specific one on April 8, 2015). These minor change to the benefits reporting concerns seeking to participate in the consultations highlighted those issues schedule from the time of an 8(a) small business mentor-prote´ge´ program specifically relevant to the tribal, ANC, Participant’s annual review submission to submit certain financial information and NHO communities, but also to when the Participant submits its to SBA, including copies of Federal tax solicited comments regarding all of the financial statement as required by returns or audited financial statements, provisions of the proposed rule. SBA § 124.602; specifically, within 120 days if applicable, filings required by the considered the statements and after the close of the Participant’s fiscal Securities and Exchange Commission, recommendations received during the year. The 8(a) Participants Benefits as well as payroll records. consultation process in finalizing this Report form has been approved by OMB Need and Purpose: The information rule. (OMB Control No. 3245–0391). This rule requested is necessary for SBA to makes no substantive changes to the determine whether prospective mentors Executive Order 12988 benefits information to be reported to are in good financial condition and For purposes of Executive Order SBA, it merely adjusts the reporting capable of meeting their obligations 12988, SBA has drafted this final rule, date. The title, summary of each under the mentor–prote´ge´ agreement to to the extent practicable, in accordance information collection, description of provide assistance to prote´ge´s and with the standards set forth in sections respondents, and an estimate of the enhance their ability to successfully 3(a) and 3(b)(2) of that Executive Order, reporting burden are discussed below. compete for Federal contracts. SBA will to minimize litigation, eliminate Included in the estimate is the time for use the information to help determine ambiguity, and reduce burden. This rule reviewing instructions, searching whether the mentor can meet its has no preemptive or retroactive effect. existing data needed, and completing obligations to provide business
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development assistance under the waste, or abuse in SBA’s mentor-prote´ge´ monitor compliance with the limitations mentor-prote´ge´ agreement, and also programs. on subcontracting requirements in its whether the prote´ge´ is an appropriate OMB Control Number: New effort to reduce fraud, waste, and abuse. participant in the program. This Collection. SBA believes that any additional burden information is to be submitted along Description of and Estimated Number imposed by this recordkeeping with the mentor-prote´ge´ agreement as of Respondents: This information will requirement would be minimal because part of the program approval process. be collected from small business firms are already required to track their SBA believes that any additional burden prote´ge´s pursuant to proposed compliance with these requirements. imposed by this requirement would be § 125.9(g). SBA estimates this number to OMB Control Number: New minimal since the firms maintain the be 2,000. Collection. information in their general course of Estimated Response Time: 2 hours. Description and Estimated Number of business. Total Estimated Annual Hour Burden: Respondents: This information will be OMB Control Number: New 4,000 collected from SBC, SDVO SBC, Collection. 4. Title and Description: Joint venture HUBZone SBC, and WOSB joint venture Description of and Estimated Number agreement. [Form number not partners under § 125.8(i), § 125.18(b), of Respondents: Pursuant to applicable] The final rule requires § 126.616(i), and § 127.506(j). SBA § 125.9(b)(2), this information will be participants to enter into a joint venture estimates this number to be between collected from concerns seeking to agreement that contains certain required 1,500 and 2,000. benefit as mentors from SBA’s mentor- provisions, pertaining to ownership, Estimated Response Time: 1 hour. Total Estimated Annual Hour Burden: prote´ge´ programs under § 125.9. SBA profits, bank accounts, itemization of 1,500–2,000. estimates this number to be between equipment and specification of 1500 and 2000, since SBA has estimated responsibilities. Commenters Regulatory Flexibility Act 5 U.S.C., 601– the number of prote´ge´s to be 2,000. recommended that no specific format 612 should be required for this agreement; Estimated Response Time: 1 hour. therefore no specific format is Under the Regulatory Flexibility Act Total Estimated Annual Hour Burden: mandated. However, the agreement (RFA), this final rule may have a 1,500–2,000. must include the information outlined significant impact on a substantial 3. Title and Description: Mentor- in § 125.8; § 125.18 ; § 126.616; and number of small businesses. Prote´ge´ Benefits Report [SBA Form § 127.506. Immediately below, SBA sets forth a ´ ´ number 2460]. Proteges participating in Need and Purpose: This information final regulatory flexibility analysis ´ ´ the small business mentor-protege collection is necessary to ensure that (FRFA) addressing the impact of this program are required to submit to SBA joint venture agreements contain the final rule in accordance with section ´ ´ annual reports on their mentor-protege provisions and information required by 604, Title 5, of the United States Code. relationships. The information to be regulation, including ownership, The FRFA examines the need and included in these annual reports is the distribution of profits, bank accounts, objectives for this final rule; the same type of information that is itemization of equipment, and significant issues raised by public ´ ´ currently required of proteges specification of responsibilities. comment and SBA’s responses thereto; participating in SBA’s 8(a) Business OMB Control Number: New kind and number of small entities that Development program, and as such will Collection. may be affected; the projected be modeled on the mentor-prote´ge´ Description and Estimated Number of recordkeeping, reporting, and other annual reporting requirements in Respondents: This information will be requirements; and a description of the Attachment B of SBA Form 1450 (OMB collected from SBC, SDVO SBC, steps SBA has taken to minimize the Control Number 3245–0205). Such HUBZone SBC, and WOSB joint venture significant economic impact on small information includes identification of partners SBA estimates this number to entities. the technical, management and/or be between 1,500 and 2,000. 1. What are the need for and objective financial assistance provided by Estimated Response Time: 1 hour. of the rule? mentors to prote´ge´s; and a description Total Estimated Annual Hour Burden: This final rule implements section of how that assistance has impacted the 1,500–2,000 1347(b)(3) of the Small Business Jobs development of the prote´ge´s. Once a 5. Title and Description: Joint venture Act of 2010, Public Law 111–240, and mentor-prote´ge´ relationship ends, the performance of work report [Form section 1641 of the NDAA 2013, Public prote´ge´ must submit a close out report number not applicable]. The final rule Law 112–239. As discussed above, the to SBA on whether the prote´ge´ believed imposes a requirement on SBC joint Small Business Jobs Act tasked the the mentor-prote´ge´ relationship was venture partners to annually submit to Agency with establishing mentor- beneficial and describe any lasting the applicable contracting officers and prote´ge´ programs for SDVO SBCs, benefits it received. SBA performance of work reports HUBZone SBCs, and WOSB concerns, Need and Purpose: This information demonstrating their how they are modeled on the Agency’s mentor- collection is necessary for SBA to, meeting or have met (for completed prote´ge´ program for small business among other things, evaluate whether contracts), the applicable performance concerns participating in programs and to what extent the prote´ge´s are of work requirements for each SDVO, under section 8(a) of the Small Business benefiting or have benefitted from the HUBZone, WOSB or small business set- Act (13 U.S.C. 637(a)), commonly relationship and in general, the aside contract they perform as a joint known as the 8(a) Business effectiveness of the program in meeting venture. Commenters recommended Development program. Similarly, its objectives. The information will also that no specific format should be section 1641 of NDAA 2013 authorized help SBA to determine whether to required by which the information SBA to establish a mentor-prote´ge´ approve the continuation of the mentor- should be transmitted to SBA. Thus, program for all small business concerns prote´ge´ agreement, approve a second SBA will permit any format that is that is identical to the 8(a) BD mentor- mentor-prote´ge´ agreement with the easiest for the joint venture partners. prote´ge´ program, except that SBA may same parties, or take other actions as Need and Purpose: This requirement modify the program to the extent necessary to protect against fraud, will greatly enhance SBA’s ability to necessary given the types of small
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business concerns included as prote´ge´s. requirements of the rule and an estimate and women-owned) would be SBA chose to implement one small of the classes of small entities which necessarily included within any mentor- business mentor-prote´ge´ program, in will be subject to the requirements? prote´ge´ program targeting all small addition to the 8(a) BD mentor-prote´ge´ The final rule imposes the following business concerns. Having one program. reporting and recordkeeping additional program instead of four 2. What are the significant issues requirements: (1) Information necessary additional programs will be easier for raised by the public comments, SBA’s for SBA to evaluate the success of a small business concerns to use and assessment of such issues, and any mentor-prote´ge´ relationship; (2) understand, and cause less of a burden changes made in the proposed rule as information necessary for SBA to on them. a result of such comments? determine whether a prospective mentor As noted above, SBA received 113 is meeting its obligations under its In addition, where the benefits ´ ´ comments in response to the proposed MPA; and (3) information necessary for provided to a protege firm are minimal rule, with most of the commenters SBA to evaluate compliance with or where it appears that the relationship commenting on multiple proposed performance of work requirements. has been used primarily to permit a provisions. A description of the SDVO SBC, HUBZone SBC, and WOSB large mentor to benefit from contracts comments received, SBA’s response to joint venture partners would be required with its approved prote´ge´, through one such comments, and the changes made to submit to SBA performance of work or more joint ventures, that it would to the final rule in response to the reports demonstrating their compliance otherwise not be eligible for, SBA will comments is identified in detail in the with the limitations on subcontracting terminate the mentor-prote´ge´ supplementary information section of requirements. SBA estimates this relationship. This will allow a small this final rule. The most heavily number to be approximately 2,000. prote´ge´ firm to get out of a bad mentor- commented on provision of the The Paperwork Reduction Act prote´ge´ relationship that may have a proposed rule was the provision requirements are addressed further negative impact on its economic authorizing SBA to change the primary above. development and seek and enter a new NAICS code of an 8(a) BD Program 5. What steps has SBA taken to mentor-prote´ge´ relationship that will Participant in appropriate minimize the significant economic prove to be more beneficial to the small circumstances. SBA believed that many impact on small entities? prote´ge´ firm. of the commenters misconstrued SBA’s Thirteen Federal agencies, including Throughout this final rule, SBA has intent. SBA alleviated the concern that SBA, currently offer mentor-prote´ge´ attempted to minimize any costs to SBA would unilaterally change a firm’s programs aimed at assisting small small business. SBA believes that the primary NAICS code without input from businesses to gain the technical and benefits to be gained through a the firm by clarifying in the final rule business skills necessary to successfully productive mentor-prote´ge´ relationship that there will be a dialogue between compete in the Federal procurement will far outweigh any administrative SBA and the affected Participant before market. While the mentor-prote´ge´ costs associated with the mentor-prote´ge´ any NAICS code change is made, and programs offered by other agencies program. In addition, the provisions of that a change will not occur where the share SBA’s goal of increasing the the final rule attempt to impose firm provides a reasonable explanation participation of small businesses in safeguards that ensure that small as to why the identified primary NAICS Government contracts, the other Federal businesses receive meaningful business code should remain as the Participant’s mentor-prote´ge´ programs are structured development assistance, while at the primary NAICS code. differently than SBA’s proposed mentor- same time ensuring that large businesses SBA received a significant number of prote´ge´ programs, particularly in terms do not unduly benefit from small comments supporting a small business of the incentives offered to mentors. For business contracts for which they would mentor-prote´ge´ program. These example, some agencies offer additional otherwise be ineligible to perform. commenters believed that a small points to a bidder who has a signed business mentor-prote´ge´ program would mentor-prote´ge´ agreement in place, List of Subjects while other agencies offer the benefit of enable firms that are not in the 8(a) BD 13 CFR Part 121 program to receive critical business reimbursing mentors for certain costs development assistance that would associated with prote´ge´s’ business Administrative practice and otherwise not be available to them. development. SBA, as the agency procedure, Government procurement, Many of these commenters expressed authorized to determine small business Government property, Individuals with support for the opportunity to gain size status, is uniquely qualified to offer disabilities, Loan programs-business, meaningful expertise that would help mentor-prote´ge´ program participants the Reporting and recordkeeping them to independently perform more distinctive benefit of an exclusion from requirements, Small businesses. complex and higher value contracts in affiliation. This incentive makes SBA’s the future. mentor-prote´ge´ programs particularly 13 CFR Part 124 3. What are SBA’s description and attractive to potential mentors. Having a Administrative practice and estimate of the number of small entities larger and more robust mentor pool procedures, Government procurement, to which the rule will apply? increases the likelihood that small The final rule will apply to all small business prote´ge´s will indeed obtain Hawaiian natives, Indians—business business concerns participating in the valuable business development and finance, Minority businesses, Federal procurement market that seek to assistance. Reporting and recordkeeping form mentor-prote´ge´ relationships. SBA SBA decided to implement one new requirements, Tribally-owned concerns, estimates this number to be about two small business mentor-prote´ge´ program Technical assistance. thousand, based upon the number of instead of four new mentor-prote´ge´ 13 CFR Part 125 8(a) Participants that have established programs (one for small businesses, one mentor-prote´ge´ relationships in that for SDVO small businesses, one for Government contracts, Government program. WOSBs and one for HUBZone small procurement, Reporting and 4. What are the projected reporting, businesses) since the other three types recordkeeping requirements, Small recordkeeping, and other compliance of small businesses (SDVO, HUBZone businesses, Technical assistance.
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13 CFR Part 126 services’’ under the exception to not be performed at a holding company Administrative practice and affiliation and those that could not. or parent entity level. (1) Contract administration services procedure, Government procurement, * * * * * that encompass actual and direct day-to- Penalties, Reporting and recordkeeping day oversight and control of the (6) A firm that has an SBA-approved requirements, Small businesses. performance of a contract/project are mentor-prote´ge´ agreement authorized 13 CFR Part 127 not shared common administrative under § 124.520 or § 125.9 of this chapter is not affiliated with its mentor Government contracts, Reporting and services, and would include tasks or functions such as negotiating directly firm solely because the prote´ge´ firm recordkeeping requirements, Small receives assistance from the mentor businesses. with the government agency regarding proposal terms, contract terms, scope under the agreement. Similarly, a 13 CFR Part 134 and modifications, project scheduling, prote´ge´ firm is not affiliated with its mentor solely because the prote´ge´ firm Administrative practice and hiring and firing of employees, and receives assistance from the mentor procedure, Organization and functions overall responsibility for the day-to-day under a federal mentor-prote´ge´ program (Government agencies). and overall project and contract completion. where an exception to affiliation is For the reasons set forth in the (2) Contract administration services specifically authorized by statute or by preamble, SBA amends 13 CFR parts that are administrative in nature may SBA under the procedures set forth in 121, 124, 125, 126, 127, and 134 as constitute administrative services that § 121.903. Affiliation may be found in follows: can be shared, and would fall within the either case for other reasons as set forth exception to affiliation. These PART 121—SMALL BUSINESS SIZE in this section. administrative services include tasks REGULATIONS * * * * * such as record retention not related to (h) * * * For purposes of this ■ a specific contract (e.g., employee time 1. The authority citation for part 121 provision and in order to facilitate continues to read as follows: and attendance records), maintenance of databases for awarded contracts, tracking of the number of contract Authority: 15 U.S.C. 632, 634(b)(6), 636(b), monitoring for regulatory compliance, awards made to a joint venture, a joint 662, and 694a(9). template development, and assisting venture: must be in writing and must do ■ 2. Amend § 121.103 by revising accounting with invoice preparation as business under its own name; must be paragraphs (b)(2)(ii), (b)(6), the last two needed. identified as a joint venture in the sentences of paragraph (h) introductory (C) Business development may System for Award Management (SAM); text, and paragraph (h)(3)(ii) to read as include both services that could be may be in the form of a formal or follows: considered ‘‘common administrative informal partnership or exist as a services’’ under the exception to separate limited liability company or § 121.103 How does SBA determine affiliation and those that could not. other separate legal entity; and, if it affiliation? Efforts at the holding company or parent exists as a formal separate legal entity, * * * * * level to identify possible procurement may not be populated with individuals (b) * * * opportunities for specific subsidiary intended to perform contracts awarded (2) * * * companies may properly be considered to the joint venture (i.e., the joint (ii) Business concerns owned and ‘‘common administrative services’’ venture may have its own separate controlled by Indian Tribes, ANCs, under the exception to affiliation. employees to perform administrative NHOs, CDCs, or wholly-owned entities However, at some point the opportunity functions, but may not have its own of Indian Tribes, ANCs, NHOs, or CDCs, identified by the holding company’s or separate employees to perform contracts are not considered to be affiliated with parent entity’s business development awarded to the joint venture). SBA may other concerns owned by these entities efforts becomes concrete enough to also determine that the relationship because of their common ownership or assign to a subsidiary and at that point between a prime contractor and its common management. In addition, the subsidiary must be involved in the subcontractor is a joint venture, and that affiliation will not be found based upon business development efforts for such affiliation between the two exists, the performance of common opportunity. At the proposal or bid pursuant to paragraph (h)(5) of this administrative services so long as preparation stage of business section. adequate payment is provided for those development, the appropriate subsidiary * * * * * services. Affiliation may be found for company for the opportunity has been other reasons. identified and a representative of that (3) * * * (A) Common administrative services company must be involved in preparing (ii) Two firms approved by SBA to be which are subject to the exception to an appropriate offer. This does not mean a mentor and prote´ge´ under § 125.9 of affiliation include, bookkeeping, to imply that one or more this chapter may joint venture as a small payroll, recruiting, other human representatives of a holding company or business for any Federal government resource support, cleaning services, and parent entity cannot also be involved in prime contract or subcontract, provided other duties which are otherwise preparing an offer. They may be the prote´ge´ qualifies as small for the size unrelated to contract performance or involved in assisting with preparing the standard corresponding to the NAICS management and can be reasonably generic part of an offer, but the specific code assigned to the procurement, and pooled or otherwise performed by a subsidiary that intends to ultimately the joint venture meets the requirements holding company, parent entity, or perform the contract must control the of § 125.18(b)(2) and (3), § 126.616(c) sister business concern without technical and contract specific portions and (d), or § 127.506(c) and (d) of this interfering with the control of the of preparing an offer. In addition, once chapter, as appropriate. subject firm. award is made, employee assignments * * * * * (B) Contract administration services and the logistics for contract include both services that could be performance must be controlled by the ■ 3. Amend § 121.404 by revising considered ‘‘common administrative specific subsidiary company and should paragraph (g)(2)(ii)(A) to read as follows:
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§ 121.404 When is the size status of a The additions and revisions read as position. She must identify her qualifications business concern determined? follows: (education, experience, years of employment, * * * * * supervisory functions) as being equal or (g) * * * § 124.103 Who is socially disadvantaged? superior to that of her male counterpart in order for SBA to consider that particular (2) * * * * * * * * (c) * * * incident may be the result of discriminatory (ii) * * * conduct. (A) When a concern, or an affiliate of (1) * * * Such individual should present corroborating evidence to Example 2 to paragraph (c)(3)(ii). A the concern, acquires or is acquired by woman who is not a member of a designated another concern; support his or her claim(s) of social group attempts to establish her individual disadvantage where readily available. * * * * * social disadvantage based on gender. She (2) * * * certifies that while working for company Y, § 121.406 [Amended] (ii) The individual’s social she was not permitted to attend a disadvantage must be rooted in professional development conference, even ■ 4. Amend § 121.406(b)(5) introductory treatment which he or she has though male employees were allowed to text by removing the phrase ‘‘paragraph experienced in American society, not in attend similar conferences in the past. (b)(1)(iii)’’ and adding in its place the other countries; Without additional facts, that claim is phrase ‘‘paragraph (b)(1)(iv)’’. (iii) The individual’s social insufficient to establish an incident of gender bias that could lead to a finding of social § 121.702 [Amended] disadvantage must be chronic and substantial, not fleeting or insignificant; disadvantage. It is no more likely that she was not permitted to attend the conference ■ 5. Amend § 121.702(a)(1)(i) by adding and the words ‘‘an Indian tribe, ANC or based on gender bias than based on non- (iv) The individual’s social discriminatory reasons. She must identify NHO (or a wholly owned business disadvantage must have negatively that she was in the same professional entity of such tribe, ANC or NHO),’’ impacted on his or her entry into or position and level as the male employees before the words ‘‘or any combination of advancement in the business world. who were permitted to attend similar these’’. SBA will consider any relevant conferences in the past, and she must ■ 6. Amend § 121.1001 by redesignating evidence in assessing this element, identify that funding for training or paragraph (b)(10) through (12) as including experiences relating to professional development was available at paragraphs (b)(11) through (13), education, employment and business the time she requested to attend the conference. respectively, and by adding a new history (including experiences relating paragraph (b)(10) to read as follows: to both the applicant firm and any other (iii) SBA may disregard a claim of previous firm owned and/or controlled social disadvantage where an individual § 121.1001 Who may initiate a size protest by the individual), where applicable. presents evidence of discriminatory or request a formal size determination? * * * * * conduct, but fails to connect the * * * * * (3) An individual claiming social discriminatory conduct to consequences (b) * * * disadvantage must present facts and that negatively impact his or her entry (10) For purposes of the small evidence that by themselves establish into or advancement in the business business mentor-prote´ge´ program that the individual has suffered social world. authorized pursuant to § 125.9 of this disadvantage that has negatively Example to paragraph (c)(3)(iii). A woman chapter (based on its status as a small impacted his or her entry into or business for its primary or identified who is not a member of a designated group advancement in the business world. attempts to establish her individual social secondary NAICS code), the business (i) Each instance of alleged disadvantage based on gender. She provides concern seeking to be a prote´ge´ or SBA discriminatory conduct must be instances where one or more male business may request a formal size accompanied by a negative impact on clients utter derogatory statements about her determination. the individual’s entry into or because she is a woman. After each instance, * * * * * advancement in the business world in however, she acknowledges that the clients order for it to constitute an instance of gave her contracts or otherwise continued to PART 124—8(A) BUSINESS do business with her. Despite suffering social disadvantage. discriminatory conduct, this individual has DEVELOPMENT/SMALL (ii) SBA may disregard a claim of DISADVANTAGED BUSINESS STATUS not established social disadvantage because social disadvantage where a legitimate the discriminatory conduct did not have an DETERMINATIONS alternative ground for an adverse adverse effect on her business. employment action or other perceived ■ 7. The authority citation for part 124 adverse action exists and the individual (4) SBA may request an applicant to continues to read as follows: has not presented evidence that would provide additional facts to support his Authority: 15 U.S.C. 634(b)(6), 636(j), render his/her claim any more likely or her claim of social disadvantage to 637(a), 637(d) and 644; Pub. L. 99–661; Pub. than the alternative ground. substantiate that a negative outcome L. 100–656, sec. 1207; Pub. L. 101–37; Pub. was based on discriminatory conduct L. 101–574, section 8021; Pub. L. 108–87; Example 1 to paragraph (c)(3)(ii). A instead of one or more legitimate non- and 42 U.S.C. 9815. woman who is not a member of a designated discriminatory reasons. group attempts to establish her individual ■ 8. Amend § 124.103 as follows: social disadvantage based on gender. She (5) SBA will discount or disbelieve ■ a. Add a sentence at the end of certifies that while working for company X, statements made by an individual paragraph (c)(1); she received less compensation than her seeking to establish his or her ■ b. Revise paragraph (c)(2)(ii); male counterpart. Without additional facts, individual social disadvantage where ■ c. Redesignate paragraph (c)(2)(iii) as that claim is insufficient to establish an such statements are inconsistent with (c)(2)(iv); incident of gender bias that could lead to a other evidence contained in the record. ■ finding of social disadvantage. Without d. Add a new paragraph (c)(2)(iii); additional facts, it is no more likely that the (6) In determining whether an ■ e. Revise newly redesignated individual claiming disadvantage was paid individual claiming social disadvantage paragraph (c)(2)(iv) introductory text; less than her male counterpart because he meets the requirements set forth in this and had superior qualifications or because he had paragraph (c), SBA will determine ■ f. Add paragraphs (c)(3) through (6). greater responsibilities in his employment whether:
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(i) Each specific claim establishes an percent’’ in paragraph (a)(4) and adding SBA looks beyond these corporate incident of bias or discriminatory in its place ‘‘20 percent’’. formalities and examines the totality of conduct; The revision reads as follows: the information submitted by the (ii) Each incident of bias or applicant to determine which § 124.108 What other eligibility discriminatory conduct negatively individual(s) manage the actual day-to- impacted the individual’s entry into or requirements apply for individuals or businesses? day operations of the applicant concern. advancement in the business world; and (B) Officers, board members, and/or (iii) In the totality, the incidents of (a) * * * tribal leaders may control a holding (1) If during the processing of an bias or discriminatory conduct that company overseeing several tribally- application, SBA receives adverse negatively impacted the individual’s owned or ANC-owned companies, information from the applicant or a entry into or advancement in the provided they do not actually control credible source regarding possible business world establish chronic and the day-to-day management of more criminal conduct by the applicant or substantial social disadvantage. than two current 8(a) BD Program any of its principals, SBA may suspend * * * * * Participant firms. further processing of the application ■ 9. Amend § 124.104 by revising and refer it to SBA’s Office of Inspector * * * * * paragraph (b)(1) to read as follows: General (OIG) for review. If the SBA ■ 14. Amend § 124.110 as follows: ■ § 124.104 Who is economically suspends the application, but does not a. Add a sentence to the end of disadvantaged? hear back from OIG within 45 days, SBA paragraph (b) introductory text; may proceed with application ■ b. Add paragraphs (b)(1) and (2); * * * * * ■ c. Revise paragraph (c) introductory (b) Submission of financial processing. The AA/BD will consider text and paragraph (c)(1); information. (1) Each individual any findings of the OIG when evaluating ■ the application. d. Revise paragraph (d); claiming economic disadvantage must ■ e. Redesignate paragraph (g) as submit personal financial information. * * * * * paragraph (h); and * * * * * ■ 13. Amend § 124.109 by adding ■ f. Add a new paragraph (g). ■ 10. Amend § 124.105 by revising paragraphs (c)(2)(iv) and (c)(4)(iii) to The additions and revisions read as paragraph (h)(2) introductory text to read as follows: follows: read as follows: § 124.109 Do Indian tribes and Alaska § 124.110 Do Native Hawaiian § 124.105 What does it mean to be Native Corporations have any special rules Organizations have any special rules for unconditionally owned by one or more for applying to the 8(a) BD program? applying to the 8(a) BD program? disadvantaged individuals? * * * * * * * * * * * * * * * (c) * * * (b) * * * In determining whether an (h) * * * (2) * * * NHO-owned concern has obtained, or is (2) A non-Participant concern in the (iv) In determining whether a tribally- likely to obtain, a substantial unfair same or similar line of business or a owned concern has obtained, or is likely competitive advantage within an principal of such concern may not own to obtain, a substantial unfair industry category, SBA will examine the more than a 10 percent interest in a competitive advantage within an firm’s participation in the relevant six Participant that is in the developmental industry category, SBA will examine the digit NAICS code nationally. stage or more than a 20 percent interest firm’s participation in the relevant six (1) SBA will consider the firm’s in a Participant in the transitional stage digit NAICS code nationally as percentage share of the national market of the program, except that a former compared to the overall small business and other relevant factors to determine Participant in the same or similar line share of that industry. whether the firm is dominant in a of business or a principal of such a (A) SBA will consider the firm’s specific six-digit NAICS code with a former Participant (except those that percentage share of the national market particular size standard. have been terminated from 8(a) BD and other relevant factors to determine (2) SBA does not contemplate a program participation pursuant to whether the firm is dominant in a finding of affiliation where an NHO- §§ 124.303 and 124.304) may have an specific six-digit NAICS code with a owned concern appears to have equity ownership interest of up to 20 particular size standard. obtained an unfair competitive percent in a current Participant in the (B) SBA does not contemplate a advantage in a local market, but remains developmental stage of the program or finding of affiliation where a tribally- competitive, but not dominant, on a up to 30 percent in a transitional stage owned concern appears to have national basis. Participant. obtained an unfair competitive (c) An NHO must establish that it is * * * * * advantage in a local market, but remains economically disadvantaged and that its ■ 11. Amend § 124.106 introductory text competitive, but not dominant, on a business activities will principally by adding a new fifth sentence to read national basis. benefit Native Hawaiians. Once an NHO as follows: * * * * * establishes that it is economically (4) * * * disadvantaged in connection with the § 124.106 When do disadvantaged (iii) The individuals responsible for application of one NHO-owned firm, it individuals control an applicant or the management and daily operations of need not reestablish such status in order Participant? a tribally-owned concern cannot manage to have other businesses that it owns * * * Management experience need more than two Program Participants at certified for 8(a) BD program not be related to the same or similar the same time. participation, unless specifically industry as the primary industry (A) An individual’s officer position, requested to do so by the AA/BD. If a classification of the applicant or membership on the board of directors or different NHO identifies that it will Participant. * * * position as a tribal leader does not serve and benefit the same Native * * * * * necessarily imply that the individual is Hawaiian community as an NHO that ■ 12. Amend § 124.108 by revising responsible for the management and has already established its economic paragraph (a)(1) and by removing ‘‘10 daily operations of a given concern. disadvantage status, that NHO need not
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establish its economic disadvantage ■ 15. Amend § 124.111 by adding a despite an increase in revenues in a status in connection with an 8(a) BD sentence to the end of paragraph (c) and secondary NAICS code beyond those application of a business concern that it by adding paragraphs (c)(1) and (2) to received in its designated primary owns, unless specifically requested to read as follows: industry classification. The Participant do so by the AA/BD. should identify: All non-federal work (1) In order to establish that an NHO § 124.111 Do Community Development that it has performed in its primary Corporations (CDCs) have any special rules NAICS code; any efforts it has made and is economically disadvantaged, it must for applying to the 8(a) BD program? demonstrate that it will principally any plans it has to make to receive benefit economically disadvantaged * * * * * contracts to obtain contracts in its Native Hawaiians. To do this, the NHO (c) * * * In determining whether a primary NAICS code; all contracts that must provide data showing the CDC-owned concern has obtained, or is it was awarded that it believes could economic condition of the Native likely to obtain, a substantial unfair have been classified under its primary Hawaiian community that it intends to competitive advantage within an NAICS code, but which a contracting serve, including: industry category, SBA will examine the officer assigned another reasonable (i) The number of Native Hawaiians in firm’s participation in the relevant six NAICS code; and any other information the community that the NHO intends to digit NAICS code nationally. that it believes has a bearing on why its serve; (1) SBA will consider the firm’s primary NAICS code should not be (ii) The present Native Hawaiian percentage share of the national market changed despite performing more work unemployment rate of those and other relevant factors to determine in another NAICS code. individuals; whether the firm is dominant in a (iii) As long as the Participant (iii) The per capita income of those specific six-digit NAICS code with a provides a reasonable explanation as to Native Hawaiians, excluding judgment particular size standard. why the identified primary NAICS code awards; (2) SBA does not contemplate a continues to be its primary NAICS code, (iv) The percentage of those Native finding of affiliation where a CDC- SBA will not change the Participant’s Hawaiians below the poverty level; and owned concern appears to have primary NAICS code. (v) The access to capital of those obtained an unfair competitive (iv) Where an SBA change in the Native Hawaiians. advantage in a local market, but remains primary NAICS code of an entity-owned competitive, but not dominant, on a * * * * * firm results in the entity having two national basis. (d) An NHO must control the Participants with the same primary applicant or Participant firm. To * * * * * NAICS code, the second, newer establish that it is controlled by an ■ 16. Amend § 124.112 by designating Participant will not be able to receive NHO, an applicant or Participant must the text of paragraph (e) as paragraph any 8(a) contracts in the six-digit NAICS demonstrate that the NHO controls its (e)(1), and adding paragraph (e)(2) to code that is the primary NAICS code of board of directors, managing members, read as follows: the first, older Participant for a period managers or managing partners. of time equal to two years after the first § 124.112 What criteria must a business Participant leaves the 8(a) BD program. (1) The NHO need not possess the meet to remain eligible to participate in the technical expertise necessary to run the 8(a) BD program? * * * * * NHO-owned applicant or Participant ■ 17. Revise § 124.202 to read as * * * * * follows: firm. The NHO must have managerial (e) * * * experience of the extent and complexity (2) SBA may change the primary § 124.202 How must an application be needed to run the concern. Management industry classification contained in a filed? experience need not be related to the Participant’s business plan where the same or similar industry as the primary An application for 8(a) BD program greatest portion of the Participant’s total admission must be filed in an electronic industry classification of the applicant revenues during the Participant’s last or Participant. format. An electronic application can be three completed fiscal years has evolved found by going to the 8(a) BD page of (2) An individual responsible for the from one NAICS code to another. As day-to-day management of an NHO- SBA’s Web site (http://www.sba.gov). part of its annual review, SBA will The SBA district office will provide an owned firm need not establish personal consider whether the primary NAICS social and economic disadvantage. applicant with information regarding code contained in a Participant’s the 8(a) BD program. * * * * * business plan continues to be ■ 18. Revise § 124.203 to read as (g) An NHO-owned firm’s eligibility appropriate. follows: for 8(a) BD participation is separate and (i) Where SBA believes that the distinct from the individual eligibility of primary industry classification § 124.203 What must a concern submit to the NHO’s members, directors, or contained in a Participant’s business apply to the 8(a) BD program? managers. plan does not match the Participant’s Each 8(a) BD applicant concern must (1) The eligibility of an NHO-owned actual revenues over the Participant’s submit those forms and attachments concern is not affected by the former most recently completed three fiscal required by SBA when applying for 8(a) BD participation of one or more of years, SBA may notify the Participant of admission to the 8(a) BD program. These the NHO’s individual members. its intent to change the Participant’s forms and attachments may include, but (2) In determining whether an NHO is primary industry classification and not be limited to, financial statements, economically disadvantaged, SBA may afford the Participant the opportunity to copies of signed Federal personal and consider the individual economic status respond. business tax returns, individual and of an NHO member or director even if (ii) A Participant may challenge SBA’s business bank statements, personal the member or director previously used intent to change its primary industry history statements, and any additional his or her disadvantaged status to classification by demonstrating why it documents SBA deems necessary to qualify an individually owned 8(a) believes the primary industry determine eligibility. In all cases, the applicant or Participant. classification contained in its business applicant must provide a signature from * * * * * plan continues to be appropriate, each individual claiming social and
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economic disadvantage status. The contract the performance of these will approve the joint venture prior to electronic signing protocol will ensure contracts to qualified Participants. * * * award pursuant to § 124.513(e). the Agency is able to specifically (b) * * * In addition, for multiple (2) * * * For a competitive 8(a) identify the individual making the award contracts not set aside for the 8(a) procurement, SBA will determine the representation. The individual(s) upon BD program, a procuring agency may set eligibility of the apparent successful whom eligibility is based take aside specific orders to be competed offeror pursuant to § 124.507(b). responsibility for the accuracy of all only among eligible 8(a) Participants, * * * * * information submitted on behalf of the regardless of the place of performance. (g) * * * applicant. Such an order may be awarded as an (4) A procuring agency may offer, and ■ 19. Amend § 124.305 by removing the 8(a) award where the order was offered SBA may accept, an order issued under period at the end of paragraph (h)(1)(ii) to and accepted by SBA as an 8(a) award a BOA to be awarded through the 8(a) and adding in its place ‘‘; or’’, adding and the order specifies that the BD program where the BOA itself was paragraphs (h)(1)(iii) and (iv), performance of work and/or non- not accepted for the 8(a) BD program, redesignating paragraph (h)(5) as (h)(6) manufacturer rule requirements apply but rather was awarded on an and adding a new paragraph (h)(5). as appropriate. unrestricted basis. The additions read as follows: * * * * * * * * * * ■ § 124.305 What is suspension and how is 21. Amend § 124.502 by revising § 124.504 [Amended] a Participant suspended from the 8(a) BD paragraph (c)(9), by removing ‘‘and’’ at program? the end of paragraph (c)(16), by ■ 23. Amend § 124.504 by removing the * * * * * redesignating paragraph (c)(17) as reference to ‘‘§ 124.503(h)’’ in paragraph (h)(1) * * * (c)(18), and by adding a new paragraph (d)(4) and adding in its place (iii) A Participant has a principal (c)(17). ‘‘§ 124.50(3)(h)(2)’’. place of business located in a federally The revision and addition read as ■ 24. Amend § 124.506 by removing declared disaster area and elects to follows: ‘‘$6,500,000’’ in paragraph (a)(2)(ii) and suspend its participation in the 8(a) BD adding in its place ‘‘$7,000,000’’, and program for a period of up to one year § 124.502 How does an agency offer a adding paragraph (b)(5). from the date of the disaster declaration procurement to SBA for award through the 8(a) BD program? The addition reads as follows: to allow the firm to recover from the disaster and take full advantage of the * * * * * § 124.506 At what dollar threshold must an (c) * * * 8(a) procurement be competed among program. A Participant that elects to be eligible Participants? suspended may request that the (9) The acquisition history, if any, of suspension be lifted prior to the end the requirement, including specifically * * * * * date of the original request; or whether the requirement is a follow-on (b) * * * (iv) Federal appropriations for one or requirement, and whether any portion (5) An agency may not award an 8(a) more federal departments or agencies of the contract was previously sole source contract for an amount have lapsed, SBA has previously performed by a small business outside exceeding $22,000,000 unless the accepted an offer for a sole source 8(a) of the 8(a) BD program; contracting officer justifies the use of a award on behalf of the Participant, * * * * * sole source contract in writing and has award is pending, and the Participant (17) A statement that the necessary obtained the necessary approval under elects to suspend its participation in the justification and approval under the the Federal Acquisition Regulation. 8(a) BD program during the lapse in Federal Acquisition Regulation has * * * * * federal appropriations. occurred where a requirement whose ■ 25. Amend § 124.507 by redesignating * * * * * estimated contract value exceeds paragraphs (b)(3) through (5) as (5) Where a Participant is suspended $22,000,000 is offered to SBA as a sole paragraphs (b)(4) through (6), pursuant to (h)(1)(iv) of this section, the source requirement on behalf of a respectively, and by adding new Participant must notify SBA when the specific Participant; and paragraph (b)(3) to read as follows: lapse in appropriation ends so that SBA * * * * * § 124.507 What procedures apply to can immediately lift the suspension. ■ 22. Amend § 124.503 by adding two competitive 8(a) procurements? When the suspension is lifted, the sentences to the end of paragraph (a)(1), * * * * * length of the suspension will be added by adding one sentence to the end of to the concern’s program term. (b) * * * paragraph (a)(2), and by adding (3) Where the apparent successful * * * * * paragraph (g)(4) to read as follows: offeror is a joint venture and SBA has ■ 20. Amend § 124.501 by revising the not approved the joint venture prior to first sentence of paragraph (a) and by § 124.503 How does SBA accept a procurement for award through the 8(a) BD receiving notification of the apparent adding two sentences to the end of program? successful offeror, review of the joint paragraph (b) to read as follows: (a) * * * venture will be part of the eligibility § 124.501 What general provisions apply (1) * * * As part of its acceptance of determination conducted under this to the award of 8(a) contracts? a sole source requirement, SBA will paragraph (b). If SBA cannot approve (a) Pursuant to section 8(a) of the determine the eligibility of the the joint venture within 5 days of Small Business Act, SBA is authorized Participant identified in the offering receiving a procuring activity’s request to enter into all types of contracts with letter, using the same analysis set forth for an eligibility determination, and the other Federal agencies regardless of the in § 124.507(b)(2). Where a procuring procuring activity does not grant place of performance, including agency offers a sole source 8(a) additional time for review, SBA will be contracts to furnish equipment, procurement on behalf of a joint unable to verify the eligibility of the supplies, services, leased real property, venture, SBA will conduct an eligibility joint venture for award. or materials to them or to perform review of the lead 8(a) party to the joint * * * * * construction work for them, and to venture as part of its acceptance, and ■ 26. Amend § 124.513 as follows:
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■ a. Add paragraph (b)(3); (7) Specifying the responsibilities of to submit an addendum setting forth ■ b. Revise paragraphs (c)(2), (c)(6) and the parties with regard to negotiation of contract performance for the non-8(a) (7), (d), and (e)(1); the contract, source of labor, and contract(s) to SBA for approval. ■ c. Add paragraphs (e)(2)(iii) and (e)(3); contract performance, including ways (3) Where a joint venture has been ■ d. Redesignate paragraphs (f), (g), (h), that the parties to the joint venture will established and approved by SBA and (i) as paragraphs (g), (h), (i) and (k), ensure that the joint venture and the without a corresponding specific 8(a) respectively; 8(a) partner(s) to the joint venture will contract award (including where a joint ■ e. Add new paragraph (f); meet the performance of work venture is established in connection ■ f. Revise newly redesignated requirements set forth in paragraph (d) with a blanket purchase agreement paragraphs (g) and (i); and of this section, where practical. If a (BPA), basic agreement (BA), or basic ■ g. Add paragraph (j) and (l). contract is indefinite in nature, such as ordering agreement (BOA)), the The additions and revisions read as an indefinite quantity contract or a Participant must submit an addendum follows: multiple award contract where the level to the joint venture agreement, setting § 124.513 Under what circumstances can a of effort or scope of work is not known, forth the performance requirements, to joint venture be awarded an 8(a) contract? the joint venture must provide a general SBA for approval for each of the three * * * * * description of the anticipated 8(a) contracts authorized to be awarded (b) * * * responsibilities of the parties with to the joint venture. In the case of a (3) SBA approval of a joint venture regard to negotiation of the contract, BPA, BA or BOA, each order issued agreement pursuant to paragraph (e) of source of labor, and contract under the agreement would count as a this section does not equate to a formal performance, not including the ways separate contract award, and SBA size determination. As such, despite that the parties to the joint venture will would need to approve the addendum SBA’s approval of a joint venture, the ensure that the joint venture and the for each order prior to award of the size status of a joint venture that is the 8(a) partner(s) to the joint venture will order to the joint venture. apparent successful offeror for a meet the performance of work (f) Past performance and experience. competitive 8(a) contract may be requirements set forth in paragraph (d) When evaluating the past performance protested pursuant to § 121.1001(a)(2) of of this section, or in the alternative, and experience of an entity submitting this chapter. See § 124.517(b). specify how the parties to the joint an offer for an 8(a) contract as a joint (c) * * * venture will define such responsibilities venture approved by SBA pursuant to (2) Designating an 8(a) Participant as once a definite scope of work is made this section, a procuring activity must the managing venturer of the joint publicly available; consider work done individually by venture and an employee of an 8(a) * * * * * each partner to the joint venture as well Participant as the project manager (d) Performance of work. (1) For any as any work done by the joint venture responsible for performance of the 8(a) contract, including those between a itself previously. contract. The individual identified as prote´ge´ and a mentor authorized by (g) Contract execution. Where SBA the project manager of the joint venture § 124.520, the joint venture must has approved a joint venture, the need not be an employee of the 8(a) perform the applicable percentage of procuring activity will execute an 8(a) Participant at the time the joint venture work required by § 124.510 of this contract in the name of the joint venture submits an offer, but, if he or she is not, chapter. entity or the 8(a) Participant, but in there must be a signed letter of intent (2) The 8(a) partner(s) to the joint either case will identify the award as that the individual commits to be venture must perform at least 40% of one to an 8(a) joint venture or an 8(a) employed by the 8(a) Participant if the the work performed by the joint venture. mentor-prote´ge´ joint venture, as joint venture is the successful offeror. (i) The work performed by the 8(a) appropriate. The individual identified as the project partner(s) to a joint venture must be * * * * * manager cannot be employed by the more than administrative or ministerial (i) Inspection of records. The joint mentor and become an employee of the functions so that the 8(a) partners gain venture partners must allow SBA’s 8(a) Participant for purposes of substantive experience. authorized representatives, including performance under the joint venture; (ii) The amount of work done by the representatives authorized by the SBA * * * * * partners will be aggregated and the work Inspector General, during normal (6) Itemizing all major equipment, done by the 8(a) partner(s) must be at business hours, access to its files to facilities, and other resources to be least 40% of the total done by all inspect and copy all records and furnished by each party to the joint partners. In determining the amount of documents relating to the joint venture. venture, with a detailed schedule of cost work done by a non-8(a) partner, all (j) Certification of compliance. Prior or value of each, where practical. If a work done by the non-8(a) partner and to the performance of any 8(a) contract contract is indefinite in nature, such as any of its affiliates at any subcontracting by a joint venture, the 8(a) BD an indefinite quantity contract or a tier will be counted. Participant to the joint venture must multiple award contract where the level (e) * * * submit a written certification to the of effort or scope of work is not known, (1) SBA must approve a joint venture contracting officer and SBA, signed by the joint venture must provide a general agreement prior to the award of an 8(a) an authorized official of each partner to description of the anticipated major contract on behalf of the joint venture. the joint venture, stating as follows: equipment, facilities, and other A Participant may submit a joint (i) The parties have entered into a resources to be furnished by each party venture agreement to SBA for approval joint venture agreement that fully to the joint venture, without a detailed at any time, whether or not in complies with paragraph (c) of this schedule of cost or value of each, or in connection with a specific 8(a) section; the alternative, specify how the parties procurement. (ii) The parties will perform the to the joint venture will furnish such (2) * * * contract in compliance with the joint resources to the joint venture once a (iii) If a second or third contract to be venture agreement and with the definite scope of work is made publicly awarded a joint venture is not an 8(a) performance of work requirements set available; contract, the Participant would not have forth in paragraph (d) of this section.
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(iii) The parties have obtained SBA’s The revisions and additions read as (iii) Once a prote´ge´ firm graduates or approval of the joint venture agreement follows: otherwise leaves the 8(a) BD program or and any addendum to that agreement grows to be other than small for its and that there have been no § 124.520 What are the rules governing primary NAICS code, it will not be SBA’s 8(a) Mentor-Prote´ge´ program? modifications to the agreement that SBA eligible for any further 8(a) contracting has not approved. (a) * * * This assistance may include benefits from its 8(a) BD mentor-prote´ge´ technical and/or management * * * * * relationship. Leaving the 8(a) BD assistance; financial assistance in the (l) Basis for suspension or debarment. program, growing to be other than small form of equity investments and/or loans; The Government may consider the for its primary NAICS code, or subcontracts (either from the mentor to following as a ground for suspension or terminating the mentor-prote´ge´ the prote´ge´ or from the prote´ge´ to the debarment as a willful violation of a relationship while a prote´ge´ is still in mentor); trade education; and/or regulatory provision or requirement the program, does not, however, assistance in performing prime contracts applicable to a public agreement or generally affect contracts previously with the Government through joint transaction: awarded to a joint venture between the venture arrangements. * * * (1) Failure to enter a joint venture prote´ge´ and its mentor. A prote´ge´ firm (b) * * * agreement that complies with paragraph that graduates or otherwise leaves the (1) * * * (c) of this section; 8(a) BD program but continues to (i) Is capable of carrying out its (2) Failure to perform a contract in qualify as a small business may transfer responsibilities to assist the prote´ge´ firm accordance with the joint venture its 8(a) mentor-prote´ge´ relationship to a under the proposed mentor-prote´ge´ agreement or performance of work small business mentor-prote´ge´ agreement; requirements in paragraph (d) of this relationship. In order to effectuate such section; or * * * * * a transfer, a firm must notify SBA of its (3) Failure to submit the certification (2) * * * Under no circumstances intent to transfer its 8(a) mentor-prote´ge´ required by paragraph (e) of this section will a mentor be permitted to have more relationship to a small business mentor- ´ ´ or comply with paragraph (i) of this than three prote´ge´s at one time in the protege relationship. The transfer will section. aggregate under the mentor-prote´ge´ occur without any application or programs authorized by §§ 124.520 and approval process. ■ 27. Amend § 124.515 by revising 125.9 of this chapter. (A) A joint venture between a prote´ge´ paragraph (a) introductory text and by (3) In order to demonstrate that it is firm that continues to qualify as small removing the words ‘‘An 8(a) contract’’ capable of carrying out its and its mentor may certify its status as in paragraph (a)(1) introductory text and responsibilities to assist the prote´ge´ firm small for any Government contract or adding in their place the words ‘‘An 8(a) under the proposed mentor-prote´ge´ subcontract so long as the prote´ge´ (and/ contract or order’’. agreement, a firm seeking to be a mentor or the joint venture) has not been The revision reads as follows: may submit to the SBA copies of the determined to be other than small for § 124.515 Can a Participant change its federal tax returns it submitted to the the size standard corresponding to the ownership or control and continue to IRS, or audited financial statements, procurement at issue (or any higher size perform an 8(a) contract, and can it transfer including any notes, or in the case of standard). performance to another firm? publicly traded concerns, the filings (B) Where the prote´ge´ firm no longer (a) An 8(a) contract (or 8(a) order required by the Securities and Exchange qualifies as small, the receipts and/or where the underlying contract is not an Commission (SEC), for the past three employees of the prote´ge´ and mentor 8(a) contract) must be performed by the years. would generally be aggregated in Participant that initially received it determining the size of any joint venture * * * * * between the mentor and prote´ge´ after unless a waiver is granted under (c) * * * paragraph (b) of this section. that date. (1) In order to initially qualify as a (C) Except for contracts with * * * * * prote´ge´ firm, a concern must: durations of more than five years ■ 28. Amend § 124.520 as follows: (i) Qualify as small for the size (including options), a contract awarded ■ a. Revise the second sentence of standard corresponding to its primary to a joint venture between a prote´ge´ and paragraph (a); NAICS code or identify that it is seeking a mentor as a small business continues ■ b. Revise paragraph (b)(1)(i); business development assistance with to qualify as an award to small business ■ c. Remove the words ‘‘or non-profit respect to a secondary NAICS code and for the life of that contract and the joint entity’’ from the first sentence of qualify as small for the size standard venture remains obligated to continue paragraph (b) introductory text and from corresponding to that NAICS code; and performance on that contract. the second sentence of paragraph (b)(2); (ii) Demonstrate how the business (D) For contracts with durations of ■ d. Revise the last sentence of development assistance to be received more than five years (including paragraph (b)(2); through its proposed mentor-prote´ge´ options), where size re-certification is ■ e. Revise paragraph (b)(3); relationship would advance the goals required no more than 120 days prior to ■ f. Revise paragraphs (c)(1) and (4); and objectives set forth in its business the end of the fifth year of the contract ■ g. Remove paragraph (c)(5); plan. and no more than 120 days prior to ■ h. Revise paragraph (d)(1)(iii); * * * * * exercising any option thereafter, once ■ i. Add paragraph (d)(5); (4) The AA/BD may authorize a the prote´ge´ firm no longer qualifies as ■ j. Redesignate paragraphs (e)(2) Participant to be both a prote´ge´ and a small for its primary NAICS code, the through (5) as paragraphs (e)(3) through mentor at the same time where the joint venture must aggregate the (6), respectively; Participant can demonstrate that the receipts/employees of the partners to ■ k. Add a new paragraph (e)(2); second relationship will not compete or the joint venture in determining ■ l. Revise newly designated paragraph otherwise conflict with the first mentor- whether it continues to qualify as and (e)(5); prote´ge´ relationship. can re-certify itself to be a small ■ m. Add paragraphs (e)(7) and (8); and (d) * * * business under the size standard ■ n. Add paragraph (i). (1) * * * corresponding to the NAICS code
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assigned to that contract. The rules set mentor expresses in writing to SBA that disposal agency determine to be in the forth in § 121.404(g)(3) of this chapter it acknowledges the mentor-prote´ge´ interest of: apply in such circumstances. agreement and certifies that it will * * * * * continue to abide by its terms. * * * * * ■ 33. Amend § 125.5 by revising the (5) Where appropriate, procuring (8) SBA may terminate the mentor- second and third sentences of paragraph activities may provide incentives in the prote´ge´ agreement at any time if it (a)(1) to read as follows: contract evaluation process to a firm determines that the prote´ge´ is not that will provide significant adequately benefiting from the § 125.5 What is the Certificate of subcontracting work to its SBA- relationship or that the parties are not Competency Program? approved prote´ge´ firm. complying with any term or condition (a) General. (1) * * * A COC is a (e) * * * of the mentor prote´ge´ agreement. In the written instrument issued by SBA to a (2) A firm seeking SBA’s approval to event SBA terminates the relationship, Government contracting officer, be a prote´ge´ must identify any other the mentor-prote´ge´ joint venture is certifying that one or more named small mentor-prote´ge´ relationship it has obligated to complete any previously business concerns possess the through another federal agency or SBA awarded contracts unless the procuring responsibility to perform a specific and provide a copy of each such agency issues a stop work order. Government procurement (or sale) mentor-prote´ge´ agreement to SBA. * * * * * contract, including any contract (i) The 8(a) BD mentor-prote´ge´ (i) Results of mentor-prote´ge´ deriving from a reverse auction. The agreement must identify how the relationship. (1) In order to assess the COC Program is applicable to all assistance to be provided by the results of a mentor-prote´ge´ relationship Government procurement actions, proposed mentor is different from upon its completion, the prote´ge´ must including Multiple Award Contracts assistance provided to the prote´ge´ report to SBA whether it believed the and orders placed against Multiple through another mentor-prote´ge´ mentor-prote´ge´ relationship was Award Contracts, where the contracting relationship, either with the same or a beneficial and describe any lasting officer has used any issues of capacity different mentor. benefits to the prote´ge´. or credit (responsibility) to determine (ii) A firm seeking SBA’s approval to (2) Where a prote´ge´ does not report suitability for an award. * * * be a prote´ge´ may terminate a mentor- the results of a mentor-prote´ge´ * * * * * prote´ge´ relationship it has through relationship upon its completion, SBA another agency and use any not yet will not approve a second mentor- § 125.6 [Amended] provided assistance identified in the prote´ge´ relationship either under this ■ other mentor-prote´ge´ agreement as part 34. Amend § 125.6 by removing section or under § 125.9 of this chapter. of the assistance that will be provided ‘‘§ 125.15’’ from paragraph (b) introductory text and adding in its place through the 8(a) BD mentor-prote´ge´ § 124.604 [Amended] ‘‘§ 125.18’’, and by removing relationship. Any assistance that has ■ already been provided through another 29. Amend § 124.604 by removing the ‘‘§ 125.15(b)(3)’’ from paragraph (b)(5) mentor-prote´ge´ relationship cannot be phrase ‘‘annual review submission’’ and and adding in its place ‘‘§ 125.18(b)(3)’’. identified as assistance that will be adding in its place the phrase ‘‘annual financial statement submission (see §§ 125.8 through 125.30 [Redesignated as provided through the 8(a) BD mentor- §§ 125.11 through 125.33] prote´ge´ relationship. § 124.602)’’ in the first sentence. ■ 35. Redesignate §§ 125.8 through * * * * * § 124.1002 [Amended] 125.30 as §§ 125.11 through 125.33, (5) SBA will review the mentor- ■ 30. Amend § 124.1002 by removing respectively, and locate them in the prote´ge´ relationship annually during the paragraph (b)(4). subparts as indicated in the following prote´ge´ firm’s annual review to list: determine whether to approve its PART 125—GOVERNMENT ■ i. Section 125.11 in subpart A; continuation for another year. Unless CONTRACTING PROGRAMS ■ ii. Sections 125.12 through 125.16 in rescinded in writing at that time, the subpart B; mentor-prote´ge´ relationship will ■ 31. The authority citation for part 125 ■ iii. Sections 125.17 through 125.26 in automatically renew without additional is revised to read as follows: subpart C; written notice of continuation or Authority: 15 U.S.C. 632(p), (q); 634(b)(6); ■ iv. Sections 125.27 through 125.31 in extension to the prote´ge´ firm. The term 637; 644; 657f; 657r. subpart D; and of a mentor-prote´ge´ agreement may not ■ ■ exceed three years, but may be extended 32. Amend § 125.2 by revising the v. Sections 125.32 and 125.33 in for a second three years. A prote´ge´ may third sentence of paragraph (a) subpart E. ■ have two three-year mentor-prote´ge´ introductory text to read as follows: 36. Add new §§ 125.8, 125.9 and agreements with different mentors, and 125.10 to precede subpart A to read as § 125.2 What are SBA’s and the procuring follows: each may be extended an additional agency’s responsibilities when providing three years provided the prote´ge´ has contracting assistance to small § 125.8 What requirements must a joint received the agreed-upon business businesses? venture satisfy to submit an offer for a development assistance and will (a) General. * * * Small business procurement or sale set aside or reserved continue to receive additional assistance concerns must receive any award for small business? through the extended mentor-prote´ge´ (including orders, and orders placed (a) General. A joint venture of two or agreement. against Multiple Award Contracts) or more business concerns may submit an * * * * * contract, part of any such award or offer as a small business for a Federal (7) If control of the mentor changes contract, any contract for the sale of procurement, subcontract or sale so long (through a stock sale or otherwise), the Government property, or any contract as each concern is small under the size previously approved mentor-prote´ge´ resulting from a reverse auction, standard corresponding to the NAICS relationship may continue provided regardless of the place of performance, code assigned to the contract, or qualify that, after the change in control, the which SBA and the procuring or as small under one of the exceptions to
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affiliation set forth in § 121.103(h)(3) of multiple award contract where the level (xii) Stating that a project-end profit this chapter. of effort or scope of work is not known, and loss statement, including a (b) Contents of joint venture the joint venture must provide a general statement of final profit distribution, agreement. (1) A joint venture description of the anticipated major must be submitted to SBA no later than agreement between two or more entities equipment, facilities, and other 90 days after completion of the contract. that individually qualify as small need resources to be furnished by each party (c) Performance of work. (1) For any not be in any specific form or contain to the joint venture, without a detailed contract set aside or reserved for small any specific conditions in order for the schedule of cost or value of each, or in business that is to be performed by a joint venture to qualify as a small the alternative, specify how the parties joint venture between a small business business. to the joint venture will furnish such prote´ge´ and its SBA-approved mentor (2) Every joint venture agreement to resources to the joint venture once a authorized by § 125.9, the joint venture perform a contract set aside or reserved definite scope of work is made publicly must perform the applicable percentage for small business between a prote´ge´ available; of work required by § 125.6, and the small business and its SBA-approved (vii) Specifying the responsibilities of small business partner to the joint mentor authorized by § 125.9 or the parties with regard to negotiation of venture must perform at least 40% of § 124.520 of this chapter must contain a the contract, source of labor, and the work performed by the joint venture. provision: contract performance, including ways (2) The work performed by the small (i) Setting forth the purpose of the that the parties to the joint venture will business partner to a joint venture must joint venture; ensure that the joint venture and the be more than administrative or (ii) Designating a small business as small business partner(s) to the joint ministerial functions so that it gains the managing venturer of the joint venture will meet the performance of substantive experience. venture, and an employee of the small work requirements set forth in (3) The amount of work done by the business managing venturer as the paragraph (d) of this section, where partners will be aggregated and the work project manager responsible for ´ ´ practical. If a contract is indefinite in done by the small business protege performance of the contract. The nature, such as an indefinite quantity partner must be at least 40% of the total individual identified as the project contract or a multiple award contract done by the partners. In determining the manager of the joint venture need not be where the level of effort or scope of amount of work done by a mentor an employee of the small business at the work is not known, the joint venture participating in a joint venture with a time the joint venture submits an offer, ´ ´ must provide a general description of small business protege, all work done by but, if he or she is not, there must be the anticipated responsibilities of the the mentor and any of its affiliates at a signed letter of intent that the parties with regard to negotiation of the any subcontracting tier will be counted. individual commits to be employed by (d) Certification of compliance. Prior contract, source of labor, and contract the small business if the joint venture is to the performance of any contract set performance, not including the ways the successful offeror. The individual aside or reserved for small business by that the parties to the joint venture will identified as the project manager cannot a joint venture between a prote´ge´ small ensure that the joint venture and the be employed by the mentor and become business and a mentor authorized by small business partner(s) to the joint an employee of the small business for § 125.9, the small business partner to venture will meet the performance of purposes of performance under the joint the joint venture must submit a written work requirements set forth in venture; certification to the contracting officer paragraph (d) of this section, or in the (iii) Stating that with respect to a and SBA, signed by an authorized alternative, specify how the parties to separate legal entity joint venture, the official of each partner to the joint the joint venture will define such small business must own at least 51% venture, stating as follows: of the joint venture entity; responsibilities once a definite scope of (1) The parties have entered into a (iv) Stating that the small business work is made publicly available; joint venture agreement that fully must receive profits from the joint (viii) Obligating all parties to the joint complies with paragraph (b) of this venture commensurate with the work venture to ensure performance of a section; performed by the small business, or in contract set aside or reserved for small (2) The parties will perform the the case of a separate legal entity joint business and to complete performance contract in compliance with the joint venture, commensurate with their despite the withdrawal of any member; venture agreement and with the ownership interests in the joint venture; (ix) Designating that accounting and performance of work requirements set (v) Providing for the establishment other administrative records relating to forth in paragraph (c) of this section. and administration of a special bank the joint venture be kept in the office of (e) Past performance and experience. account in the name of the joint venture. the small business managing venturer, When evaluating the past performance This account must require the signature unless approval to keep them elsewhere and experience of an entity submitting of all parties to the joint venture or is granted by the District Director or his/ an offer for a contract set aside or designees for withdrawal purposes. All her designee upon written request; reserved for small business as a joint payments due the joint venture for (x) Requiring that the final original venture established pursuant to this performance on a contract set aside or records be retained by the small section, a procuring activity must reserved for small business will be business managing venturer upon consider work done individually by deposited in the special account; all completion of any contract set aside or each partner to the joint venture as well expenses incurred under the contract reserved for small business that was as any work done by the joint venture will be paid from the account as well; performed by the joint venture; itself previously. (vi) Itemizing all major equipment, (xi) Stating that quarterly financial (f) Contract execution. The procuring facilities, and other resources to be statements showing cumulative contract activity will execute a contract set aside furnished by each party to the joint receipts and expenditures (including or reserved for small business in the venture, with a detailed schedule of cost salaries of the joint venture’s principals) name of the joint venture entity or a or value of each, where practical. If a must be submitted to SBA not later than small business partner to the joint contract is indefinite in nature, such as 45 days after each operating quarter of venture, but in either case will identify an indefinite quantity contract or a the joint venture; and the award as one to a small business
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joint venture or a small business (3) Failure to submit the certification required by the Securities and Exchange mentor-prote´ge´ joint venture, as required by paragraph (d) of this section Commission (SEC), for the past three appropriate. or comply with paragraph (g) of this years. (g) Inspection of records. The joint section. (3) Once approved, a mentor must venture partners must allow SBA’s (j) Compliance with performance of annually certify that it continues to authorized representatives, including work requirements. Any person with possess good character and a favorable representatives authorized by the SBA information concerning a joint venture’s financial position. Inspector General, during normal compliance with the performance of (4) Generally, a mentor will have no business hours, access to its files to work requirements may report that more than one prote´ge´ at a time. inspect and copy all records and information to SBA and/or the SBA However, SBA may authorize a concern documents relating to the joint venture. Office of Inspector General. to mentor more than one prote´ge´ at a (h) Performance of work reports. In time where it can demonstrate that the § 125.9 What are the rules governing connection with any contract set aside SBA’s small business mentor-prote´ge´ additional mentor-prote´ge´ relationship or reserved for small business that is program? will not adversely affect the ´ ´ awarded to a joint venture between a (a) General. The small business development of either protege firm (e.g., ´ ´ protege small business and a mentor mentor-prote´ge´ program is designed to the second firm may not be a competitor authorized by § 125.9, the small enhance the capabilities of prote´ge´ firms of the first firm). Under no business partner must describe how it is by requiring approved mentors to circumstances will a mentor be meeting or has met the applicable provide business development permitted to have more than three ´ ´ performance of work requirements for assistance to prote´ge´ firms and to proteges at one time in the aggregate ´ ´ each contract set aside or reserved for improve the prote´ge´ firms’ ability to under the mentor-protege programs small business that it performs as a joint successfully compete for federal authorized by §§ 124.520 and 125.9 of venture. contracts. This assistance may include this chapter. ´ ´ (1) The small business partner to the technical and/or management (c) Proteges. (1) In order to initially ´ ´ joint venture must annually submit a assistance; financial assistance in the qualify as a protege firm, a concern must report to the relevant contracting officer form of equity investments and/or loans; qualify as small for the size standard and to the SBA, signed by an authorized subcontracts (either from the mentor to corresponding to its primary NAICS official of each partner to the joint the prote´ge´ or from the prote´ge´ to the code or identify that it is seeking venture, explaining how the mentor); trade education; and/or business development assistance with performance of work requirements are assistance in performing prime contracts respect to a secondary NAICS code and being met for each contract set aside or with the Government through joint qualify as small for the size standard reserved for small business that is venture arrangements. Mentors are corresponding to that NAICS code. performed during the year. encouraged to provide assistance (i) A firm may self-certify that it (2) At the completion of every relating to the performance of contracts qualifies as small for its primary or contract set aside or reserved for small set aside or reserved for small business identified secondary NAICS code. business that is awarded to a joint so that prote´ge´ firms may more fully (ii) Where a firm is other than small venture between a prote´ge´ small develop their capabilities. for the size standard corresponding to business and a mentor authorized by (b) Mentors. Any concern that its primary NAICS code and seeks to § 125.9, the small business partner to demonstrates a commitment and the qualify as a small business prote´ge´ in a the joint venture must submit a report ability to assist small business concerns secondary NAICS code, the firm must to the relevant contracting officer and to may act as a mentor and receive benefits demonstrate how the mentor-prote´ge´ the SBA, signed by an authorized as set forth in this section. This includes relationship is a logical business official of each partner to the joint other than small businesses. progression for the firm and will further venture, explaining how and certifying (1) In order to qualify as a mentor, a develop or expand current capabilities. that the performance of work concern must demonstrate that it: SBA will not approve a mentor-prote´ge´ requirements were met for the contract, (i) Is capable of carrying out its relationship in a secondary NAICS code and further certifying that the contract responsibilities to assist the prote´ge´ firm in which the firm has no prior was performed in accordance with the under the proposed mentor-prote´ge´ experience. provisions of the joint venture agreement; (2) A prote´ge´ firm may generally have agreement that are required under (ii) Possesses good character; only one mentor at a time. SBA may paragraph (b) of this section. (iii) Does not appear on the federal list approve a second mentor for a particular (i) Basis for suspension or debarment. of debarred or suspended contractors; prote´ge´ firm where the second For any joint venture between a prote´ge´ and relationship will not compete or small business and a mentor authorized (iv) Can impart value to a prote´ge´ firm otherwise conflict with the assistance by § 125.9, the Government may due to lessons learned and practical set forth in the first mentor-prote´ge´ consider the following as a ground for experience gained or through its relationship and: suspension or debarment as a willful knowledge of general business (i) The second relationship pertains to violation of a regulatory provision or operations and government contracting. an unrelated NAICS code; or requirement applicable to a public (2) In order to demonstrate that it is (ii) The prote´ge´ firm is seeking to agreement or transaction: capable of carrying out its acquire a specific expertise that the first (1) Failure to enter a joint venture responsibilities to assist the prote´ge´ firm mentor does not possess. agreement that complies with paragraph under the proposed mentor-prote´ge´ (3) SBA may authorize a small (b) of this section; agreement, a firm seeking to be a mentor business to be both a prote´ge´ and a (2) Failure to perform a contract in may submit to the SBA copies of the mentor at the same time where the small accordance with the joint venture federal tax returns it submitted to the business can demonstrate that the agreement or performance of work IRS, or audited financial statements, second relationship will not compete or requirements in paragraph (c) of this including any notes, or in the case of otherwise conflict with the first mentor- section; or publicly traded concerns, the filings prote´ge´ relationship.
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(4) Where appropriate, SBA may § 121.404(g)(3) of this chapter apply in another agency and use any not yet examine the Service-Disabled Veteran- such circumstances. provided assistance identified in the Owned Small Business status or (2) In order to raise capital, the other mentor-prote´ge´ agreement as part Women-Owned Small Business status of prote´ge´ firm may agree to sell or of the assistance that will be provided a concern seeking to be a prote´ge´ that otherwise convey to the mentor an through the small business mentor- claims such status in any Federal equity interest of up to 40% in the prote´ge´ relationship. Any assistance that procurement database. prote´ge´ firm. has already been provided through (d) Benefits. (1) A prote´ge´ and mentor (3) Notwithstanding the mentor- another mentor-prote´ge´ relationship may joint venture as a small business for prote´ge´ relationship, a prote´ge´ firm may cannot be identified as assistance that any government prime contract or qualify for other assistance as a small will be provided through the small subcontract, provided the prote´ge´ business, including SBA financial business mentor-prote´ge´ relationship. qualifies as small for the procurement. assistance. (3) The written agreement must be Such a joint venture may seek any type (4) No determination of affiliation or approved by the Associate of small business contract (i.e., small control may be found between a prote´ge´ Administrator for Business business set-aside, 8(a), HUBZone, firm and its mentor based solely on the Development (AA/BD) or his/her SDVO, or WOSB) for which the prote´ge´ mentor-prote´ge´ agreement or any designee. The agreement will not be firm qualifies (e.g., a prote´ge´ firm that assistance provided pursuant to the approved if SBA determines that the qualifies as a WOSB could seek a WOSB agreement. However, affiliation may be assistance to be provided is not set-aside as a joint venture with its SBA- found for other reasons set forth in sufficient to promote any real approved mentor). § 121.103 of this chapter. developmental gains to the prote´ge´, or if (i) SBA must approve the mentor- (5) Where appropriate, procuring SBA determines that the agreement is prote´ge´ agreement before the two firms activities may provide incentives in the merely a vehicle to enable the mentor to may submit an offer as a joint venture contract evaluation process to a firm receive small business contracts. on a particular government prime that will provide significant (4) The agreement must provide that contract or subcontract in order for the subcontracting work to its SBA- either the prote´ge´ or the mentor may joint venture to receive the exclusion approved prote´ge´ firm. terminate the agreement with 30 days from affiliation. (e) Written agreement. (1) The mentor advance notice to the other party to the (ii) In order to receive the exclusion and prote´ge´ firms must enter a written mentor-prote´ge´ relationship and to SBA. from affiliation, the joint venture must agreement setting forth an assessment of (5) SBA will review the mentor- meet the requirements set forth in the prote´ge´’s needs and providing a prote´ge´ relationship annually to § 125.8(b)(2), (c), and (d). detailed description and timeline for the determine whether to approve its (iii) Once a prote´ge´ firm no longer delivery of the assistance the mentor continuation for another year. Unless qualifies as a small business for the size commits to provide to address those rescinded in writing as a result of the standard corresponding to its primary needs (e.g., management and/or review, the mentor-prote´ge´ relationship NAICS code, it will not be eligible for technical assistance, loans and/or equity will automatically renew without any further contracting benefits from its investments, cooperation on joint additional written notice of mentor-prote´ge´ relationship. However, a venture projects, or subcontracts under continuation or extension to the prote´ge´ change in the prote´ge´’s size status does prime contracts being performed by the firm. The term of a mentor-prote´ge´ not generally affect contracts previously mentor). The mentor-prote´ge´ agreement agreement may not exceed three years, awarded to a joint venture between the must: but may be extended for a second three prote´ge´ and its mentor. (i) Address how the assistance to be years. A prote´ge´ may have two three- (A) Except for contracts with provided through the agreement will year mentor-prote´ge´ agreements with durations of more than five years help the prote´ge´ firm meet its goals as different mentors, and each may be (including options), a contract awarded defined in its business plan; extended an additional three years to a joint venture between a prote´ge´ and (ii) Establish a single point of contact provided the prote´ge´ has received the a mentor as a small business continues in the mentor concern who is agreed-upon business development to qualify as an award to small business responsible for managing and assistance and will continue to receive for the life of that contract and the joint implementing the mentor-prote´ge´ additional assistance through the venture remains obligated to continue agreement; and extended mentor-prote´ge´ agreement. performance on that contract. (iii) Provide that the mentor will (6) SBA must approve all changes to (B) For contracts with durations of provide such assistance to the prote´ge´ a mentor-prote´ge´ agreement in advance, more than five years (including firm for at least one year. and any changes made to the agreement options), where size re-certification is (2) A firm seeking SBA’s approval to must be provided in writing. If the required under § 121.404(g)(3) of this be a prote´ge´ must identify any other parties to the mentor-prote´ge´ chapter no more than 120 days prior to mentor-prote´ge´ relationship it has relationship change the mentor-prote´ge´ the end of the fifth year of the contract through another federal agency or SBA agreement without prior approval by and no more than 120 days prior to and provide a copy of each such SBA, SBA shall terminate the mentor- exercising any option thereafter, once mentor-prote´ge´ agreement to SBA. prote´ge´ relationship and may also the prote´ge´ no longer qualifies as small (i) The small business mentor-prote´ge´ propose suspension or debarment of one for the size standard corresponding to agreement must identify how the or both of the firms pursuant to its primary NAICS code, the joint assistance to be provided by the paragraph (h) of this section where venture must aggregate the receipts/ proposed mentor is different from appropriate. employees of the partners to the joint assistance provided to the prote´ge´ (7) If control of the mentor changes venture in determining whether it through another mentor-prote´ge´ (through a stock sale or otherwise), the continues to qualify as and can re- relationship, either with the same or a previously approved mentor-prote´ge´ certify itself to be a small business different mentor. relationship may continue provided under the size standard corresponding (ii) A firm seeking SBA’s approval to that, after the change in control, the to the NAICS code assigned to that be a prote´ge´ may terminate a mentor- mentor expresses in writing to SBA that contract. The rules set forth in prote´ge´ relationship it has through it acknowledges the mentor-prote´ge´
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agreement and certifies that it will (iv) All federal contracts awarded to (2) SBA may consider a mentor’s continue to abide by its terms. the mentor-prote´ge´ relationship as a failure to comply with the terms and (8) SBA may terminate the mentor- joint venture (designating each as a conditions of an SBA-approved mentor- prote´ge´ agreement at any time if it small business set-aside, small business prote´ge´ agreement as a basis for determines that the prote´ge´ is not reserve, or unrestricted procurement), debarment on the grounds, including benefiting from the relationship or that the value of each contract, and the but not limited to, that the mentor has the parties are not complying with any percentage of the contract performed not complied with the terms of a public term or condition of the mentor prote´ge´ and the percentage of revenue accruing agreement under 2 CFR 180.800(b). agreement. In the event SBA terminates to each party to the joint venture; and (i) Results of mentor-prote´ge´ the relationship, the mentor-prote´ge´ (v) A narrative describing the success relationship. (1) In order to assess the joint venture is obligated to complete such assistance has had in addressing results of a mentor-prote´ge´ relationship any previously awarded contracts the developmental needs of the prote´ge´ upon its completion, the prote´ge´ must unless the procuring agency issues a and addressing any problems report to SBA whether it believed the stop work order. encountered. mentor-prote´ge´ relationship was (f) Decision to decline mentor-prote´ge´ (2) The prote´ge´ must report the beneficial and describe any lasting relationship. (1) Where SBA declines to mentoring services it receives by benefits to the prote´ge´. approve a specific mentor-prote´ge´ category and hours. (2) Where a prote´ge´ does not report agreement, the prote´ge´ may request the (3) The prote´ge´ must annually certify the results of a mentor-prote´ge´ AA/BD or designee to reconsider the to SBA whether there has been any relationship upon its completion, SBA Agency’s initial decline decision by change in the terms of the agreement. will not approve a second mentor- filing a request for reconsideration (4) SBA will review the prote´ge´’s prote´ge´ relationship either under this within 45 calendar days of receiving report on the mentor-prote´ge´ section or under § 124.520 of this notice that its mentor-prote´ge´ agreement relationship, and may decide not to chapter. was declined. The prote´ge´ may revise approve continuation of the agreement the proposed mentor-prote´ge´ agreement if it finds that the mentor has not § 125.10 Mentor-Prote´ge´ programs of and provide any additional information provided the assistance set forth in the other agencies. and documentation pertinent to mentor-prote´ge´ agreement or that the (a) Except as provided in paragraph overcoming the reason(s) for the initial assistance has not resulted in any (c) of this section, a Federal department decline. material benefits or developmental gains or agency may not carry out a mentor- (2) SBA will issue a written decision to the prote´ge´. prote´ge´ program for small business within 45 calendar days of receipt of the (h) Consequences of not providing unless the head of the department or prote´ge´’s request. SBA may approve the assistance set forth in the mentor- agency submits a plan to the SBA mentor-prote´ge´ agreement, deny it on prote´ge´ agreement. (1) Where SBA Administrator for the program and the the same grounds as the original determines that a mentor has not SBA Administrator approves the plan. decision, or deny it on other grounds. provided to the prote´ge´ firm the Before starting a new mentor prote´ge´ (3) If SBA declines the mentor-prote´ge´ business development assistance set program, the head of a department or agreement solely on issues not raised in forth in its mentor-prote´ge´ agreement, agency must submit a plan to the SBA the initial decline, the prote´ge´ can ask SBA will notify the mentor of such Administrator. Within one year of the for reconsideration as if it were an determination and afford the mentor an effective date of this section, the head of initial decline. opportunity to respond. The mentor a department or agency must submit a (4) If SBA’s final decision is to decline must respond within 30 days of the plan to the SBA for any previously a specific mentor-prote´ge´ agreement, the notification, explaining why it has not existing mentor-prote´ge´ program that small business concern seeking to be a provided the agreed upon assistance the department or agency seeks to prote´ge´ cannot attempt to enter into and setting forth a definitive plan as to continue. another mentor-prote´ge´ relationship when it will provide such assistance. If (b) The SBA Administrator will with the same mentor for a period of 60 the mentor fails to respond, does not approve or disapprove a plan submitted calendar days from the date of the final supply adequate reasons for its failure to under paragraph (a) of this section based decision. The small business concern provide the agreed upon assistance, or on whether the proposed program: may, however, submit another proposed does not set forth a definite plan to (1) Will assist prote´ge´s to compete for mentor-prote´ge´ agreement with a provide the assistance: Federal prime contracts and different proposed mentor at any time (i) SBA will terminate the mentor- subcontracts; and after the SBA’s final decline decision. prote´ge´ agreement; (2) Complies with the provisions set (g) Evaluating the mentor-prote´ge´ (ii) The firm will be ineligible to again forth in §§ 125.9 and 124.520 of this relationship. (1) Within 30 days of the act as a mentor for a period of two years chapter, as applicable. anniversary of SBA’s approval of the from the date SBA terminates the (c) Paragraph (a) of this section does mentor-prote´ge´ agreement, the prote´ge´ mentor-prote´ge´ agreement; and not apply to: must report to SBA for the preceding (iii) SBA may recommend to the (1) Any mentor-prote´ge´ program of year: relevant procuring agency to issue a the Department of Defense; (i) All technical and/or management stop work order for each federal contract (2) Any mentoring assistance assistance provided by the mentor to the for which the mentor and prote´ge´ are provided under a Small Business prote´ge´; performing as a small business joint Innovation Research Program or a Small (ii) All loans to and/or equity venture in order to encourage the Business Technology Transfer Program; investments made by the mentor in the mentor to comply with its mentor- and prote´ge´; prote´ge´ agreement. Where a prote´ge´ firm (3) A mentor-prote´ge´ program (iii) All subcontracts awarded to the is able to independently complete operated by a Department or agency on prote´ge´ by the mentor and all performance of any such contract, SBA January 2, 2013, for a period of one year subcontracts awarded to the mentor by may recommend to the procuring after the effective date of this section. the prote´ge´, and the value of each agency to authorize a substitution of the (d) The head of each Federal subcontract; prote´ge´ firm for the joint venture. department or agency carrying out an
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agency-specific mentor-prote´ge´ program (i) Setting forth the purpose of the performance, not including the ways must report annually to SBA: joint venture; that the parties to the joint venture will (1) The participants (both prote´ge´ (ii) Designating an SDVO SBC as the ensure that the joint venture and the firms and their approved mentors) in its managing venturer of the joint venture, SDVO small business partner(s) to the mentor-prote´ge´ program. This includes and an employee of the SDVO SBC joint venture will meet the performance identifying the number of participants managing venturer as the project of work requirements set forth in that are: manager responsible for performance of paragraph (d) of this section, or in the (i) Small business concerns; the contract; alternative, specify how the parties to (ii) Small business concerns owned (iii) Stating that with respect to a the joint venture will define such and controlled by service-disabled separate legal entity joint venture, the responsibilities once a definite scope of veterans; SDVO SBC must own at least 51% of the work is made publicly available; (iii) Small business concerns owned joint venture entity; (viii) Obligating all parties to the joint and controlled by socially and (iv) Stating that the SDVO SBC must venture to ensure performance of the economically disadvantaged receive profits from the joint venture SDVO contract and to complete individuals; commensurate with the work performed performance despite the withdrawal of (iv) Small business concerns owned by the SDVO SBC, or in the case of a any member; and controlled by Indian tribes, Alaska separate legal entity joint venture, (ix) Designating that accounting and Native Corporations, Native Hawaiian commensurate with their ownership other administrative records relating to Organizations, and Community interests in the joint venture; the joint venture be kept in the office of Development Corporations; and (v) Providing for the establishment the SDVO SBC managing venturer, (v) Small business concerns owned and administration of a special bank unless approval to keep them elsewhere and controlled by women; account in the name of the joint venture. is granted by the District Director or his/ (2) The assistance provided to small This account must require the signature her designee upon written request; businesses through the program; and of all parties to the joint venture or (x) Requiring that the final original (3) The progress of prote´ge´ firms designees for withdrawal purposes. All records be retained by the SDVO SBC under the program to compete for payments due the joint venture for managing venturer upon completion of Federal prime contracts and performance on an SDVO contract will the SDVO contract performed by the subcontracts. be deposited in the special account; all joint venture; ■ 37. Amend newly redesignated expenses incurred under the contract (xi) Stating that quarterly financial § 125.18 by revising paragraph (b) to will be paid from the account as well; statements showing cumulative contract read as follows: (vi) Itemizing all major equipment, receipts and expenditures (including facilities, and other resources to be salaries of the joint venture’s principals) § 125.18 What requirements must an furnished by each party to the joint must be submitted to SBA not later than SDVO SBC meet to submit an offer on a venture, with a detailed schedule of cost 45 days after each operating quarter of contract? or value of each, where practical. If a the joint venture; and * * * * * contract is indefinite in nature, such as (xii) Stating that a project-end profit (b) Joint ventures. An SDVO SBC may an indefinite quantity contract or a and loss statement, including a enter into a joint venture agreement multiple award contract where the level statement of final profit distribution, with one or more other SBCs or its SBA- of effort or scope of work is not known, must be submitted to SBA no later than approved mentor for the purpose of the joint venture must provide a general 90 days after completion of the contract. performing an SDVO contract. description of the anticipated major (3) Performance of work. (i) For any (1) Size of concerns to an SDVO SBC equipment, facilities, and other SDVO contract, including those between joint venture. (i) A joint venture of at resources to be furnished by each party a prote´ge´ and a mentor authorized by least one SDVO SBC and one or more to the joint venture, without a detailed § 125.9 or § 124.520 of this chapter, the other business concerns may submit an schedule of cost or value of each, or in joint venture must perform the offer as a small business for a the alternative, specify how the parties applicable percentage of work required competitive SDVO SBC procurement or to the joint venture will furnish such by § 125.6. sale, or be awarded a sole source SDVO resources to the joint venture once a (ii) The SDVO SBC partner(s) to the contract, so long as each concern is definite scope of work is made publicly joint venture must perform at least 40% small under the size standard available; of the work performed by the joint corresponding to the NAICS code (vii) Specifying the responsibilities of venture. assigned to the procurement or sale. the parties with regard to negotiation of (A) The work performed by the SDVO (ii) A joint venture between a prote´ge´ the contract, source of labor, and SBC partner(s) to a joint venture must be firm that qualifies as an SDVO SBC and contract performance, including ways more than administrative or ministerial its SBA-approved mentor (see §§ 125.9 that the parties to the joint venture will functions so that they gain substantive and 124.520 of this chapter) will be ensure that the joint venture and the experience. deemed small provided the prote´ge´ SDVO small business partner(s) to the (B) The amount of work done by the qualifies as small for the size standard joint venture will meet the performance partners will be aggregated and the work corresponding to the NAICS code of work requirements set forth in done by the SDVO SBC partner(s) must assigned to the SDVO procurement or paragraph (b)(3) of this section, where be at least 40% of the total done by all sale. practical. If a contract is indefinite in partners. In determining the amount of (2) Contents of joint venture nature, such as an indefinite quantity work done by a non-SDVO SBC partner, agreement. Every joint venture contract or a multiple award contract all work done by the non-SDVO SBC agreement to perform an SDVO contract, where the level of effort or scope of partner and any of its affiliates at any including those between a prote´ge´ firm work is not known, the joint venture subcontracting tier will be counted. that qualifies as an SDVO SBC and its must provide a general description of (4) Certification of Compliance. Prior SBA-approved mentor authorized by the anticipated responsibilities of the to the performance of any SDVO § 124.520 or § 125.9 of this chapter, parties with regard to negotiation of the contract as a joint venture, the SDVO must contain a provision: contract, source of labor, and contract SBC partner to the joint venture must
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submit a written certification to the debarment as a willful violation of a information contained in an application contracting officer and SBA, signed by regulatory provision or requirement or document submission at any time. an authorized official of each partner to applicable to a public agreement or (c) The burden of proof to the joint venture, stating as follows: transaction: demonstrate eligibility is on the (i) The parties have entered into a (i) Failure to enter a joint venture applicant concern. If a concern does not joint venture agreement that fully agreement that complies with paragraph provide requested information within complies with paragraph (b)(2) of this (b)(2) of this section; the allotted time provided by SBA, or if section; (ii) Failure to perform a contract in it submits incomplete information, SBA (ii) The parties will perform the accordance with the joint venture may presume that disclosure of the contract in compliance with the joint agreement or performance of work missing information would adversely venture agreement and with the requirements in paragraph (b)(3) of this affect the business concern or performance of work requirements set section; or demonstrate a lack of eligibility in the forth in paragraph (b)(3) of this section. (iii) Failure to submit the certification area or areas to which the information (5) Past performance and experience. required by paragraph (b)(4) of this relates. When evaluating the past performance section or comply with paragraph (b)(7) (d) The applicant must be eligible as and experience of an entity submitting of this section. of the date it submitted its application an offer for an SDVO contract as a joint (10) Any person with information and up until and at the time the D/HUB venture established pursuant to this concerning a joint venture’s compliance issues a decision. The decision will be section, a procuring activity must with the performance of work based on the facts set forth in the consider work done individually by requirements may report that application, any information received in each partner to the joint venture as well information to SBA and/or the SBA response to SBA’s request for as any work done by the joint venture Office of Inspector General. clarification, and any changed itself previously. circumstances since the date of (6) Contract execution. The procuring § 125.22 [Amended] application. activity will execute an SDVO contract ■ 38. Amend newly redesignated (e) Any changed circumstance in the name of the joint venture entity § 125.22 by adding the phrase ‘‘, occurring after an applicant has or the SDVO SBC, but in either case will regardless of the place of performance,’’ submitted an application will be identify the award as one to an SDVO in the first sentence of paragraphs (b)(1) considered and may constitute grounds joint venture or an SDVO mentor- and (b)(2)(i) after the words ‘‘for small for decline. After submitting the prote´ge´ joint venture, as appropriate. business concerns’’ and before the application and signed representation, (7) Inspection of records. The joint words ‘‘when there is a reasonable an applicant must notify SBA of any venture partners must allow SBA’s expectation’’. changes that could affect its eligibility. authorized representatives, including The D/HUB may propose decertification representatives authorized by the SBA PART 126—HUBZONE PROGRAM for any HUBZone SBC that failed to Inspector General, during normal inform SBA of any changed ■ business hours, access to its files to 39. The authority citation for part 126 circumstances that affected its eligibility inspect and copy all records and is revised to read as follows: for the program during the processing of documents relating to the joint venture. Authority: 15 U.S.C. 632(a), 632(j), 632(p), the application. (8) Performance of work reports. An 644, and 657a; Pub. L. 111–240, 24 Stat. * * * * * SDVO SBC partner to a joint venture 2504. ■ 41. Amend § 126.600 by revising the must describe how it is meeting or has ■ 40. Amend § 126.306 as follows: introductory text to read as follows: met the applicable performance of work ■ a. Revise paragraphs (a) and (b); requirements for each SDVO contract it ■ b. Redesignate paragraphs (c) and (d) § 126.600 What are HUBZone contracts? performs as a joint venture. as paragraphs (f) and (g), respectively; HUBZone contracts are contracts (i) The SDVO SBC partner to the joint and awarded to a qualified HUBZone SBC, venture must annually submit a report ■ c. Add new paragraphs (c), (d) and (e). regardless of the place of performance, to the relevant contracting officer and to The revisions and additions read as through any of the following the SBA, signed by an authorized follows: procurement methods: official of each partner to the joint * * * * * venture, explaining how and certifying § 126.306 How will SBA process the ■ that the performance of work certification? 42. Revise § 126.615 to read as requirements are being met. (a) The D/HUB or designee is follows: (ii) At the completion of every SDVO authorized to approve or decline § 126.615 May a large business participate contract awarded to a joint venture, the applications for certification. SBA will on a HUBZone contract? SDVO SBC partner to the joint venture receive and review all applications and Except as provided in § 126.618(d), a must submit a report to the relevant request supporting documents. SBA large business may not participate as a contracting officer and to the SBA, must receive all required information, prime contractor on a HUBZone award, signed by an authorized official of each supporting documents, and completed but may participate as a subcontractor to partner to the joint venture, explaining HUBZone representation before it will an otherwise qualified HUBZone SBC, how and certifying that the performance begin processing a concern’s subject to the contract performance of work requirements were met for the application. SBA will not process requirements set forth in § 126.700. incomplete packages. SBA will make its contract, and further certifying that the ■ 43. Revise § 126.616 to read as determination within ninety (90) contract was performed in accordance follows: with the provisions of the joint venture calendar days after receipt of a complete agreement that are required under package whenever practicable. The § 126.616 What requirements must a joint paragraph (b)(2) of this section. decision of the D/HUB or designee is the venture satisfy to submit an offer on a (9) Basis for suspension or debarment. final agency decision. HUBZone contract? The Government may consider the (b) SBA may request additional (a) General. A qualified HUBZone following as a ground for suspension or information or clarification of SBC may enter into a joint venture
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agreement with one or more other SBCs, This account must require the signature is granted by the District Director or his/ or with an approved mentor authorized of all parties to the joint venture or her designee upon written request; by § 125.9 of this chapter (or, if also an designees for withdrawal purposes. All (10) Requiring that the final original 8(a) BD Participant, with an approved payments due the joint venture for records be retained by the HUBZone mentor authorized by § 124.520 of this performance on a HUBZone contract SBC managing venturer upon chapter), for the purpose of submitting will be deposited in the special account; completion of the HUBZone contract an offer for a HUBZone contract. The all expenses incurred under the contract performed by the joint venture; joint venture itself need not be certified will be paid from the account as well; (11) Stating that quarterly financial as a qualified HUBZone SBC. (6) Itemizing all major equipment, statements showing cumulative contract (b) Size. (1) A joint venture of at least facilities, and other resources to be receipts and expenditures (including one qualified HUBZone SBC and one or furnished by each party to the joint salaries of the joint venture’s principals) more other business concerns may venture, with a detailed schedule of cost must be submitted to SBA not later than submit an offer as a small business for or value of each, where practical. If a 45 days after each operating quarter of a HUBZone procurement or sale so long contract is indefinite in nature, such as the joint venture; and as each concern is small under the size an indefinite quantity contract or a (12) Stating that a project-end profit standard corresponding to the NAICS multiple award contract where the level and loss statement, including a code assigned to the procurement or of effort or scope of work is not known, statement of final profit distribution, sale. the joint venture must provide a general must be submitted to SBA no later than (2) A joint venture between a prote´ge´ description of the anticipated major 90 days after completion of the contract. firm and its SBA-approved mentor (see equipment, facilities, and other (d) Limitations on subcontracting. (1) § 125.9 of this chapter) will be deemed resources to be furnished by each party For any HUBZone contract to be ´ ´ small provided the protege qualifies as to the joint venture, without a detailed performed by a joint venture between a small for the size standard schedule of cost or value of each, or in qualified HUBZone SBC and another corresponding to the NAICS code the alternative, specify how the parties qualified HUBZone SBC, the aggregate assigned to the HUBZone procurement to the joint venture will furnish such of the qualified HUBZone SBCs to the or sale. resources to the joint venture once a joint venture, not each concern (c) Contents of joint venture definite scope of work is made publicly separately, must perform the applicable agreement. Every joint venture available; percentage of work required by § 125.6 agreement to perform a HUBZone (7) Specifying the responsibilities of of this chapter. contract, including those between a the parties with regard to negotiation of (2) For any HUBZone contract to be prote´ge´ firm that is a certified HUBZone the contract, source of labor, and performed by a joint venture between a SBC and its SBA-approved mentor contract performance, including ways qualified HUBZone prote´ge´ and a small authorized by § 124.520 or § 125.9 of that the parties to the joint venture will business concern or its SBA-approved this chapter, must contain a provision: (1) Setting forth the purpose of the ensure that the joint venture and the mentor authorized by § 125.9 or joint venture; HUBZone partner(s) to the joint venture § 124.520 of this chapter, the joint (2) Designating a HUBZone SBC as the will meet the performance of work venture must perform the applicable managing venturer of the joint venture, requirements set forth in paragraph (d) percentage of work required by § 125.6 and an employee of the HUBZone SBC of this section, where practical. If a of this chapter, and the HUBZone SBC managing venturer as the project contract is indefinite in nature, such as partner to the joint venture must manager responsible for performance of an indefinite quantity contract or a perform at least 40% of the work the contract. The individual identified multiple award contract where the level performed by the joint venture. as the project manager of the joint of effort or scope of work is not known, (i) The work performed by the venture need not be an employee of the the joint venture must provide a general HUBZone SBC partner to a joint venture HUBZone SBC at the time the joint description of the anticipated must be more than administrative or venture submits an offer, but, if he or responsibilities of the parties with ministerial functions so that it gains she is not, there must be a signed letter regard to negotiation of the contract, substantive experience. of intent that the individual commits to source of labor, and contract (ii) The amount of work done by the be employed by the HUBZone SBC if performance, not including the ways partners will be aggregated and the work the joint venture is the successful that the parties to the joint venture will done by the HUBZone prote´ge´ partner offeror. The individual identified as the ensure that the joint venture and the must be at least 40% of the total done project manager cannot be employed by HUBZone partner(s) to the joint venture by the partners. In determining the the mentor and become an employee of will meet the performance of work amount of work done by a mentor the HUBZone SBC for purposes of requirements set forth in paragraph (d) participating in a joint venture with a performance under the joint venture; of this section, or in the alternative, HUBZone qualified prote´ge´, all work (3) Stating that with respect to a specify how the parties to the joint done by the mentor and any of its separate legal entity joint venture, the venture will define such responsibilities affiliates at any subcontracting tier will HUBZone SBC must own at least 51% once a definite scope of work is made be counted. of the joint venture entity; publicly available; (e) Certification of compliance. Prior (4) Stating that the HUBZone SBC (8) Obligating all parties to the joint to the performance of any HUBZone must receive profits from the joint venture to ensure performance of the contract as a joint venture, the venture commensurate with the work HUBZone contract and to complete HUBZone SBC partner to the joint performed by the HUBZone SBC, or in performance despite the withdrawal of venture must submit a written the case of a separate legal entity joint any member; certification to the contracting officer venture, commensurate with their (9) Designating that accounting and and SBA, signed by an authorized ownership interests in the joint venture; other administrative records relating to official of each partner to the joint (5) Providing for the establishment the joint venture be kept in the office of venture, stating as follows: and administration of a special bank the HUBZone SBC managing venturer, (i) The parties have entered into a account in the name of the joint venture. unless approval to keep them elsewhere joint venture agreement that fully
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complies with paragraph (c) of this applicable to a public agreement or will perform primary and vital section; transaction: requirements of the contract. See (ii) The parties will perform the (1) Failure to enter a joint venture § 121.103(h)(4) of this chapter. contract in compliance with the joint agreement that complies with paragraph venture agreement and with the (c) of this section; PART 127—WOMEN-OWNED SMALL performance of work requirements set (2) Failure to perform a contract in BUSINESS FEDERAL CONTRACT forth in paragraph (d) of this section. accordance with the joint venture PROGRAM (f) Past performance and experience. agreement or performance of work ■ 45. The authority citation for part 127 When evaluating the past performance requirements in paragraph (d) of this is revised to read as follows: and experience of an entity submitting section; or an offer for a HUBZone contract as a (3) Failure to submit the certification Authority: 15 U.S.C. 632, 634(b)(6), joint venture established pursuant to required by paragraph (e) of this section 637(m), 644 and 657r. this section, a procuring activity must or comply with paragraph (h) of this § 127.500 [Amended] consider work done individually by section. each partner to the joint venture as well (k) Any person with information ■ 46. Amend § 127.500 by adding the as any work done by the joint venture concerning a joint venture’s compliance words ‘‘, regardless of the place of itself previously. with the performance of work performance’’ to the end of the sentence. (g) Contract execution. The procuring requirements may report that ■ 47. Amend § 127.506 as follows: ■ activity will execute a HUBZone information to SBA and/or the SBA a. Revise the section introductory text contract in the name of the joint venture Office of Inspector General. and paragraph (a), add an italic subject entity or the HUBZone SBC, but in ■ 44. Revise § 126.618 to read as head to paragraph (c) introductory text, either case will identify the award as follows: and revise paragraphs (c)(2) and (3); ■ one to a HUBZone joint venture or a b. Redesignate paragraph (c)(4) as § 126.618 How does a HUBZone SBC’s (c)(7) and paragraph (c)(5) as (c)(10) HUBZone mentor-prote´ge´ joint venture, participation in a Mentor-Prote´ge´ as appropriate. respectively; relationship affect its participation in the ■ c. Add new paragraphs (c)(4) through (h) Inspection of records. The joint HUBZone Program? (6); venture partners must allow SBA’s (a) A qualified HUBZone SBC may ■ d. Revise newly redesignated authorized representatives, including enter into a mentor-prote´ge´ relationship paragraphs (c)(7) and (c)(10); representatives authorized by the SBA under § 125.9 of this chapter (or, if also ■ e. Add paragraphs (c)(8) and (9) and Inspector General, during normal an 8(a) BD Participant, under § 124.520 (c)(11) and (12); business hours, access to its files to of this chapter) or in connection with a ■ f. Revise paragraphs (d), (e), and (f); inspect and copy all records and mentor-prote´ge´ program of another and documents relating to the joint venture. agency, provided that such relationships ■ g. Add paragraphs (g) through (l). (i) Performance of work reports. The do not conflict with the underlying The revisions and additions read as HUBZone SBC partner to a joint venture HUBZone requirements. follows: must describe how it is meeting or has (b) For purposes of determining met the applicable performance of work whether an applicant to the HUBZone § 127.506 May a joint venture submit an requirements for each HUBZone offer on an EDWOSB or WOSB Program or a HUBZone SBC qualifies as requirement? contract it performs as a joint venture. small under part 121 of this chapter, (1) The HUBZone SBC partner to the SBA will not find affiliation between A joint venture, including those ´ ´ joint venture must annually submit a the applicant or qualified HUBZone between a protege and a mentor under report to the relevant contracting officer SBC and the firm that is its mentor in § 125.9 of this chapter (or, if also an 8(a) and to the SBA, signed by an authorized an SBA-approved mentor-prote´ge´ BD Participant, under § 124.520 of this official of each partner to the joint relationship (including a mentor that is chapter), may submit an offer on a venture, explaining how the other than small) on the basis of the WOSB Program contract if the joint performance of work requirements are mentor-prote´ge´ agreement or the venture meets all of the following being met for each HUBZone contract assistance provided to the prote´ge´ firm requirements: performed during the year. under the agreement. SBA will not (a)(1) A joint venture of at least one (2) At the completion of every consider the employees of the mentor in WOSB or EDWOSB and one or more HUBZone contract awarded to a joint determining whether the applicant or other business concerns may submit an venture, the HUBZone SBC partner to qualified HUBZone SBC meets (or offer as a small business for a WOSB the joint venture must submit a report continues to meet) the 35% HUBZone Program procurement or sale so long as to the relevant contracting officer and to residency requirement or the principal each concern is small under the size the SBA, signed by an authorized office requirement, or in determining standard corresponding to the NAICS official of each partner to the joint the size of the applicant or qualified code assigned to the procurement or venture, explaining how and certifying HUBZone SBC for any employee-based sale. (2) A joint venture between a prote´ge´ that the performance of work size standard. requirements were met for the contract, (c) A qualified HUBZone SBC that is firm and its SBA-approved mentor (see and further certifying that the contract a prime contractor on a HUBZone § 125.9 and § 124.520 of this chapter) was performed in accordance with the contract may subcontract work to its will be deemed small provided the ´ ´ provisions of the joint venture mentor. protege qualifies as small for the size agreement that are required under (1) The HUBZone SBC must meet the standard corresponding to the NAICS paragraph (c) of this section. applicable performance of work code assigned to the WOSB Program (j) Basis for suspension or debarment. requirements set forth in § 125.6(c) of procurement or sale. The Government may consider the this chapter. * * * * * following as a ground for suspension or (2) SBA may find affiliation between (c) Contents of joint venture debarment as a willful violation of a a prime HUBZone contractor and its agreement.*** regulatory provision or requirement mentor subcontractor where the mentor * * * * *
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(2) Designating a WOSB as the joint venture will meet the performance (ii) The amount of work done by the managing venturer of the joint venture, of work requirements set forth in partners will be aggregated and the work and an employee of the WOSB paragraph (d) of this section, where done by the WOSB partner(s) must be at managing venturer as the project practical. If a contract is indefinite in least 40% of the total done by all manager responsible for performance of nature, such as an indefinite quantity partners. In determining the amount of the contract. The individual identified contract or a multiple award contract work done by the non-WOSB partner, as the project manager of the joint where the level of effort or scope of all work done by the non-WOSB partner venture need not be an employee of the work is not known, the joint venture and any of its affiliates at any WOSB at the time the joint venture must provide a general description of subcontracting tier will be counted. submits an offer, but, if he or she is not, the anticipated responsibilities of the (e) Certification of compliance. Prior there must be a signed letter of intent parties with regard to negotiation of the to the performance of any WOSB that the individual commits to be contract, source of labor, and contract Program contract as a joint venture, the employed by the WOSB if the joint performance, not including the ways WOSB Program participant in the joint venture is the successful offeror. The that the parties to the joint venture will venture must submit a written individual identified as the project ensure that the joint venture and the certification to the contracting officer manager cannot be employed by the WOSB Program participant(s) in the and SBA, signed by an authorized mentor and become an employee of the joint venture will meet the performance official of each partner to the joint WOSB for purposes of performance of work requirements set forth in venture, stating as follows: under the joint venture; paragraph (d) of this section, or in the (i) The parties have entered into a (3) Stating that with respect to a alternative, specify how the parties to joint venture agreement that fully separate legal entity joint venture, the the joint venture will define such complies with paragraph (c) of this WOSB must own at least 51% of the responsibilities once a definite scope of section; joint venture entity; work is made publicly available; (ii) The parties will perform the (4) Stating that the WOSB must (8) Obligating all parties to the joint contract in compliance with the joint receive profits from the joint venture venture to ensure performance of the venture agreement and with the commensurate with the work performed WOSB contract and to complete performance of work requirements set by the WOSB, or in the case of a performance despite the withdrawal of forth in paragraph (d) of this section. separate legal entity joint venture, any member; (f) Past performance and experience. commensurate with their ownership When evaluating the past performance (9) Designating that accounting and interests in the joint venture; and experience of an entity submitting other administrative records relating to (5) Providing for the establishment an offer for a WOSB Program contract as the joint venture be kept in the office of and administration of a special bank a joint venture established pursuant to the WOSB managing venturer, unless account in the name of the joint venture. this section, a procuring activity must approval to keep them elsewhere is This account must require the signature consider work done individually by granted by the District Director or his/ of all parties to the joint venture or each partner to the joint venture as well her designee upon written request; designees for withdrawal purposes. All as any work done by the joint venture (10) Requiring that the final original payments due the joint venture for itself previously. performance on a WOSB Program records be retained by the WOSB (g) Contract execution. The procuring contract will be deposited in the special managing venturer upon completion of activity will execute a WOSB Program account; all expenses incurred under the WOSB Program contract performed contract in the name of the joint venture the contract will be paid from the by the joint venture; entity or the WOSB, but in either case account as well; (11) Stating that quarterly financial will identify the award as one to a (6) Itemizing all major equipment, statements showing cumulative contract WOSB Program joint venture or a WOSB facilities, and other resources to be receipts and expenditures (including Program mentor-prote´ge´ joint venture, furnished by each party to the joint salaries of the joint venture’s principals) as appropriate. venture, with a detailed schedule of cost must be submitted to SBA not later than (h) Submission of joint venture or value of each, where practical. If a 45 days after each operating quarter of agreement. The WOSB Program contract is indefinite in nature, such as the joint venture; and participant must provide a copy of the an indefinite quantity contract or a (12) Stating that a project-end profit joint venture agreement to the multiple award contract where the level and loss statement, including a contracting officer. of effort or scope of work is not known, statement of final profit distribution, (i) Inspection of records. The joint the joint venture must provide a general must be submitted to SBA no later than venture partners must allow SBA’s description of the anticipated major 90 days after completion of the contract. authorized representatives, including equipment, facilities, and other (d) Performance of work. (1) For any representatives authorized by the SBA resources to be furnished by each party WOSB Program contract, the joint Inspector General, during normal to the joint venture, without a detailed venture (including one between a business hours, access to its files to schedule of cost or value of each, or in prote´ge´ and a mentor authorized by inspect and copy all records and the alternative, specify how the parties § 125.9 or § 124.520 of this chapter) documents relating to the joint venture. to the joint venture will furnish such must perform the applicable percentage (j) Performance of work reports. The resources to the joint venture once a of work required by § 125.6 of this WOSB Program participant in the joint definite scope of work is made publicly chapter. venture must describe how it is meeting available; (2) The WOSB partner(s) to the joint or has met the applicable performance (7) Specifying the responsibilities of venture must perform at least 40% of of work requirements for each WOSB the parties with regard to negotiation of the work performed by the joint venture. Program contract it performs as a joint the contract, source of labor, and (i) The work performed by the WOSB venture. contract performance, including ways partner(s) to a joint venture must be (1) The WOSB partner to the joint that the parties to the joint venture will more than administrative or ministerial venture must annually submit a report ensure that the joint venture and the functions so that they gain substantive to the relevant contracting officer and to WOSB Program participant(s) in the experience. the SBA, signed by an authorized
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official of each partner to the joint with the performance of work § 134.406 Review of the administrative venture, explaining how the requirements may report that record. performance of work requirements are information to SBA and/or the SBA * * * * * being met for each WOSB Program Office of Inspector General. (b) Except in suspension appeals, the contract performed during the year. Administrative Law Judge’s review is (2) At the completion of every WOSB PART 134—RULES OF PROCEDURE limited to determining whether the Program contract awarded to a joint GOVERNING CASES BEFORE THE Agency’s determination is arbitrary, venture, the WOSB partner to the joint OFFICE OF HEARINGS AND APPEALS capricious, or contrary to law. As long venture must submit a report to the as the Agency’s determination is not ■ relevant contracting officer and to the 48. The authority citation for part 134 arbitrary, capricious or contrary to law, SBA, signed by an authorized official of continues to read as follows: the Administrative Law Judge must each partner to the joint venture, Authority: 5 U.S.C. 504; 15 U.S.C. 632, uphold it on appeal. explaining how and certifying that the 634(b)(6), 637(a), 648(l), 656(i), and 687(c); (1) The Administrative Law Judge performance of work requirements were E.O. 12549, 51 FR 6370, 3 CFR, 1986 Comp., must consider whether the decision was met for the contract, and further p. 189. based on a consideration of the relevant certifying that the contract was ■ 49. Amend § 134.227 by revising factors and whether there has been a performed in accordance with the paragraph (c) to read as follows: clear error of judgment. provisions of the joint venture (2) If the SBA’s path of reasoning may agreement that are required under § 134.227 Finality of decisions. reasonably be discerned, the paragraph (c) of this section. * * * * * Administrative Law Judge will uphold a (k) Basis for suspension or debarment. (c) Reconsideration. Except as decision of less than ideal clarity. The Government may consider the otherwise provided by statute, the * * * * * following as a ground for suspension or applicable program regulations in this debarment as a willful violation of a chapter, or this part 134, an initial or § 134.501 [Amended] regulatory provision or requirement final decision of the Judge may be applicable to a public agreement or ■ 51. Amend § 134.501 by removing reconsidered. Any party in interest, ‘‘§ 125.26’’ from paragraph (a) and by transaction: including SBA where SBA did not (1) Failure to enter a joint venture adding ‘‘§ 125.29’’ in its place. appear as a party during the proceeding agreement that complies with paragraph that led to the issuance of the Judge’s (c) of this section; § 134.515 [Amended] decision, may request reconsideration (2) Failure to perform a contract in ■ by filing with the Judge and serving a 52. Amend § 134.515 by removing ‘‘13 accordance with the joint venture petition for reconsideration within 20 CFR 125.28’’ from paragraph (a) and by agreement or performance of work days after service of the written adding ‘‘§ 125.31 of this chapter’’ in its requirements in paragraph (d) of this decision, upon a clear showing of an place. section; or (3) Failure to submit the certification error of fact or law material to the Dated: July 1, 2016. required by paragraph (e) or comply decision. The Judge also may reconsider Maria Contreras-Sweet, with paragraph (i) of this section. a decision on his or her own initiative. Administrator. (l) Any person with information ■ 50. Amend § 134.406 by revising [FR Doc. 2016–16399 Filed 7–22–16; 8:45 am] concerning a joint venture’s compliance paragraph (b) to read as follows: BILLING CODE 8025–01–P
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Part IV
Department of Education
34 CFR Parts 600 and 668 Program Integrity and Improvement; Proposed Rule
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DEPARTMENT OF EDUCATION McArdle, U.S. Department of Education, minimum standards of State 400 Maryland Ave. SW., Room 6W256, authorization that an institution must 34 CFR Parts 600 and 668 Washington, DC 20202. Scott Filter, U.S. demonstrate in order to establish [Docket ID ED–2016–OPE–0050] Department of Education, 400 Maryland eligibility to participate in title IV Ave. SW., Room 6W253, Washington, programs. While the regulations RIN 1840–AD20 DC 20202. established in 2010 made clear that all Privacy Note: The Department’s eligible institutions must have State Program Integrity and Improvement policy is to make all comments received authorization in the States in which AGENCY: Office of Postsecondary from members of the public available for they are physically located, the U.S. Education, Department of Education. public viewing in their entirety on the Court of Appeals for the District of ACTION: Notice of proposed rulemaking. Federal eRulemaking Portal at Columbia set aside the Department’s www.regulations.gov. Therefore, regulations regarding authorization of SUMMARY: The Secretary proposes to commenters should be careful to distance education programs or amend the State authorization sections include in their comments only correspondence courses, and the of the Institutional Eligibility information that they wish to make regulations did not address additional regulations issued under the Higher publicly available. locations or branch campuses located in Education Act of 1965, as amended FOR FURTHER INFORMATION CONTACT: foreign locations. As such, these (HEA). In addition, the Secretary Sophia McArdle, U.S. Department of proposed regulations would clarify the proposes to amend the Student Education, 400 Maryland Ave. SW., State authorization requirements an Assistance General Provisions Room 6W256, Washington, DC 20202. institution must comply with in order to regulations issued under the HEA, Telephone (202) 453–6318 or by email be eligible to participate in title IV including the addition of a new section at: [email protected]. Scott Filter, programs, ending uncertainty with on required institutional disclosures for U.S. Department of Education, 400 respect to State authorization and distance education and correspondence Maryland Ave. SW., Room 6W253, closing any gaps in State oversight to courses. Washington, DC 20202. Telephone (202) ensure students, families and taxpayers DATES: We must receive your comments 453–7249 or by email at: scott.filter@ are protected. The Office of the Inspector General on or before August 24, 2016. ed.gov. If you use a telecommunications (OIG), the Government Accountability ADDRESSES: Submit your comments Office (GAO), and others have voiced through the Federal eRulemaking Portal device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay concerns over fraudulent practices, or via postal mail, commercial delivery, issues of non-compliance with or hand delivery. We will not accept Service (FRS), toll free, at 1–800–877– 8339. requirements of the title IV programs, comments submitted by fax or by email and other challenges within the distance or those submitted after the comment SUPPLEMENTARY INFORMATION: education environment. Such practices period. To ensure that we do not receive Executive Summary and challenges include misuse of title duplicate copies, please submit your IV funds, verification of student comments only once. In addition, please Purpose of This Regulatory Action: identity, and gaps in consumer include the Docket ID at the top of your This regulatory action establishes protections for students. The clarified comments. requirements for institutional eligibility requirements related to State If you are submitting comments to participate in title IV, HEA programs. authorization will support the integrity electronically, we strongly encourage These financial aid programs are the of the title IV, HEA programs by you to submit any comments or Federal Pell Grant program, the Federal permitting the Department to withhold attachments in Microsoft Word format. Supplemental Educational Opportunity title IV funds from institutions that are If you must submit a comment in Adobe Grant, the Federal Work-Study program, not authorized to operate in a given Portable Document Format (PDF), we the Teacher Education Assistance for State. strongly encourage you to convert the College and Higher Education (TEACH) Because institutions that offer PDF to print-to-PDF format or to use Grant program, Federal Family distance education programs usually some other commonly used searchable Educational Loan Program, and the offer the programs in multiple States, text format. Please do not submit the William D. Ford Direct Loan program. there are unique challenges with respect PDF in a scanned format. Using a print- The HEA established what is to oversight of these programs by State to-PDF format allows the Department of commonly known as the program and other agencies. Education (Department) to integrity ‘‘triad’’ under which States, Many States and stakeholders have electronically search and copy certain accrediting agencies, and the expressed concerns with these unique portions of your submissions. Department act jointly as gatekeepers for challenges, especially those related to • Federal eRulemaking Portal: Go to the Federal student aid programs ensuring adequate consumer protections www.regulations.gov to submit your mentioned above. This triad has been in for students as well as compliance by comments electronically. Information existence since the inception of the institutions participating in this sector. on using Regulations.gov, including HEA; and as an important component of For example, some States have instructions for accessing agency this triad, the HEA requires institutions expressed concerns over their ability to documents, submitting comments, and of higher education to obtain approval identify what out of State providers are viewing the docket, is available on the from the States in which they provide operating in their States, whether those site under ‘‘help’’ tab. postsecondary educational programs. programs prepare their students for • Postal Mail, Commercial Delivery, This requirement recognizes the employment, including meeting or Hand Delivery: The Department important oversight role States play in licensure requirements in those States, strongly encourages commenters to protecting students, their families, the academic quality of programs submit their comments electronically. taxpayers, and the general public as a offered by those providers, as well as However, if you mail or deliver your whole. the ability to receive, investigate and comments about the proposed The Department established address student complaints about out- regulations, address them to Sophia regulations in 2010 to clarify the of-State institutions.
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One stakeholder provided an example prospective students with important to access complaint resolution in either of a student in California who enrolled information that will protect them. the State in which the institution is in an online program offered by an Summary of the Major Provisions of authorized or the State in which they institution in Virginia, but then This Regulatory Action: The proposed reside. The clarified requirements informed the institution of her decision regulations would— related to State authorization also to cancel her enrollment agreement. • Require an institution offering support the integrity of the title IV, HEA Four years later, that student was told distance education or correspondence programs by permitting the Department that her wages would be garnished if courses to be authorized by each State to withhold title IV funds from she did not begin making monthly in which the institution enrolls institutions that are not authorized to payments on her debt to the institution. students, if such authorization is operate in a given State. Institutions that Although the State of California had a required by the State, in order to link choose to offer distance education will cancellation law that may have been State authorization of institutions incur costs in complying with State beneficial to the student, that law did offering distance education to authorization requirements as well as not apply due to the institution’s lack of institutional eligibility to participate in costs associated with the disclosures physical presence in the State. title IV programs, including through a that would be required by the proposed According to the stakeholder, the State authorization reciprocity regulations. agreement. Invitation to Comment: We invite you Virginia-based institution was also • exempt from oversight by the Define the term ‘‘State authorization to submit comments regarding these appropriate State oversight agency, reciprocity agreement’’ to be an proposed regulations. To ensure that making it problematic for the student to agreement between two or more States your comments have maximum effect in voice a complaint or have any action that authorizes an institution located developing the final regulations, we taken on it. and legally authorized in a State urge you to identify clearly the specific Documented wrong-doing has been covered by the agreement to provide section or sections of the proposed reflected in the actions of multiple State postsecondary education through regulations that each of your comments attorneys general who have filed distance education or correspondence addresses, and provide relevant lawsuits against online education courses to students in other States information and data, as well as other providers due to misleading business covered by the agreement. supporting materials in the request for • Require an institution to document tactics. For example, the attorney comment, even when there is no the State process for resolving general of Iowa settled a case against a specific solicitation of data. We also complaints from students enrolled in distance education provider for urge you to arrange your comments in programs offered through distance the same order as the proposed misleading Iowa students because the education or correspondence courses. regulations. Please do not submit provider stated that their educational • Require that an additional location comments outside the scope of the programs would qualify a student to or branch campus located in a foreign specific proposed regulations in this earn teacher licensure, which the location be authorized by an appropriate notice of proposed rulemaking, as we programs did not lead to. government agency of the country are not required to respond to comments As such, this regulatory action also where the additional location or branch that are outside of the scope of the establishes requirements for campus is located and, if at least half of proposed rule. See ADDRESSES: for institutional disclosures to prospective an educational program can be instructions on how to submit and enrolled students in programs completed at the location or branch comments. offered through distance education or campus, be approved by the We invite you to assist us in correspondence courses, which we institution’s accrediting agency and be complying with the specific believe will protect students by reported to the State where the requirements of Executive Orders 12866 providing them with important institution’s main campus is located. and 13563 and their overall requirement information that will influence their • Require that an institution provide of reducing regulatory burden that attendance in distance education public and individualized disclosures to might result from the proposed programs or correspondence courses as enrolled and prospective students regulations. Please let us know of any well as improve the efficacy of State- regarding its programs offered solely further ways we could reduce potential based consumer protections for through distance education or costs or increase potential benefits students. Since distance education may correspondence courses. while preserving the effective and involve multiple States, authorization efficient administration of the Costs and Benefits requirements among States may differ, Department’s programs and activities. and students may be unfamiliar with or The proposed regulations support During and after the comment period, fail to receive information about States in their efforts to develop you may inspect all public comments complaint processes, licensure standards and increase State about the proposed regulations by requirements, or other requirements of accountability for a significant sector of accessing Regulations.gov. You may also authorities in States in which they do higher education—the distance inspect the comments in person in not reside. education sector. In 2014, over Room 6C105, 400 Maryland Ave. SW., These disclosures will provide 2,800,000 students were enrolled in Washington, DC, between 8:30 a.m. and consistent information necessary to over 23,000 separate distance education 4 p.m., Washington, DC time, Monday safeguard students and taxpayer programs. The potential primary through Friday of each week except investments in the title IV, HEA benefits of the proposed regulations are: Federal holidays. If you want to programs. By requiring disclosures that (1) Increased transparency and access to schedule time to inspect comments, reflect actions taken against a distance institutional/program information please contact the individuals listed education program, how to lodge through additional disclosures, (2) under FOR FURTHER INFORMATION complaints against a program they updated and clarified requirements for CONTACT. believe has misled them, and whether State authorization of distance Assistance to Individuals with the program will lead to certification or education and foreign additional Disabilities in Reviewing the licensure will provide enrolled and locations, and (3) a process for students Rulemaking Record: On request, we will
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provide an appropriate accommodation Written comments submitted in enrollment of needy students as defined or auxiliary aid to an individual with a response to the April 16, 2013, in title III of the HEA; two-year public disability who needs assistance to document may be viewed through the institutions of higher education; four- review the comments or other Federal eRulemaking Portal at year public institutions of higher documents in the public rulemaking www.regulations.gov, within docket ID education; private, non-profit record for the proposed regulations. If ED–2012–OPE–0008. Instructions for institutions of higher education; private, you want to schedule an appointment finding comments are also available on for-profit institutions of higher for this type of accommodation or the site under the ‘‘help’’ tab. education; regional accrediting agencies; auxiliary aid, please contact the person Negotiated Rulemaking national accrediting agencies; listed under FOR FURTHER INFORMATION specialized accrediting agencies; CONTACT. Section 492 of the HEA, 20 U.S.C. financial aid administrators at 1098a, requires the Secretary to obtain Public Participation postsecondary institutions; business public involvement in the development officers and bursars at postsecondary On May 1, 2012, we published a of proposed regulations affecting institutions; admissions officers at document in the Federal Register (77 programs authorized by title IV of the postsecondary institutions; institutional FR 25658) announcing our intent to HEA. After obtaining advice and third-party servicers who perform establish a negotiated rulemaking recommendations from the public, functions related to the title IV Federal committee under section 492 of the HEA including individuals and Student Aid programs (including to develop proposed regulations representatives of groups involved in collection agencies); State approval designed to prevent fraud and otherwise the title IV, HEA programs, in most agencies; and lenders, community ensure proper use of title IV of the HEA, cases the Secretary must subject the banks, and credit unions. The Federal student aid program funds, proposed regulations to a negotiated Department considered the nominations especially within the context of current rulemaking process. If negotiators reach submitted by the public and chose technologies. On April 16, 2013, we consensus on the proposed regulations, negotiators who would represent the published a document in the Federal the Department agrees to publish various constituencies. Register (78 FR 22467), which we without alteration a defined group of The negotiating committee included corrected on April 30, 2013 (78 FR regulations on which the negotiators the following members: 25235), announcing additional topics reached consensus unless the Secretary for consideration for action by a reopens the process or provides a Chris Lindstrom, U.S. Public Interest Research Group, and Maxwell John Love negotiated rulemaking committee. The written explanation to the participants (alternate), United States Student following topics for consideration were stating why the Secretary has decided to Association, representing students. identified: Cash management of funds depart from the agreement reached Whitney Barkley, Mississippi Center for provided under the title IV Federal during negotiations. Further information Justice, and Toby Merrill (alternate), Project Student Aid programs; State on the negotiated rulemaking process on Predatory Student Lending, The Legal authorization for programs offered can be found at: http://www2.ed.gov/ Services Center, Harvard Law School, through distance education or policy/highered/reg/hearulemaking/ representing legal assistance organizations correspondence education; State hea08/neg-reg-faq.html. that represent students. authorization for foreign locations of On November 20, 2013, we published Suzanne Martindale, Consumers Union, a document in the Federal Register (78 representing consumer advocacy institutions located in a State; clock-to- organizations. Carolyn Fast, Consumer credit- hour conversion; gainful FR 69612) announcing our intent to Frauds and Protection Bureau, New York employment; changes to the campus establish a negotiated rulemaking Attorney General’s Office, and Jenny safety and security reporting committee to prepare proposed Wojewoda (alternate), Massachusetts requirements in the Clery Act made by regulations to address program integrity Attorney General’s Office representing State the Violence Against Women Act; and and improvement issues for the Federal attorneys general and other appropriate State the definition of ‘‘adverse credit’’ for Student Aid programs authorized under officials. borrowers in the Federal Direct PLUS title IV of the HEA. That document set David Sheridan, School of International & Loan program. In that notice, we forth a schedule for the committee Public Affairs, Columbia University in the meetings and requested nominations for City of New York, and Paula Luff (alternate), announced three public hearings at DePaul University, representing financial aid which interested parties could comment individual negotiators to serve on the administrators. on the topics suggested by the negotiating committee. Gloria Kobus, Youngstown State Department and could suggest The Department sought negotiators to University, and Joan Piscitello (alternate), additional topics for consideration for represent the following groups: Iowa State University, representing business action by a negotiated rulemaking Students; legal assistance organizations officers and bursars at postsecondary committee. We also invited parties that represent students; consumer institutions. unable to attend a public hearing to advocacy organizations; State higher David Swinton, Benedict College, and submit written comments on the education executive officers; State George French (alternate), Miles College, representing minority serving institutions. additional topics and to submit other attorneys general and other appropriate Brad Hardison, Santa Barbara City College, topics for consideration. On May 13, State officials; business and industry; and Melissa Gregory (alternate), Montgomery 2013, we announced in the Federal institutions of higher education eligible College, representing two-year public Register (78 FR 27880) the addition of to receive Federal assistance under title institutions. a fourth hearing. The hearings were held III, parts A, B, and F and title V of the Chuck Knepfle, Clemson University, and J. on May 21, 2013, in Washington, DC; HEA, which include Historically Black Goodlett McDaniel (alternate), George Mason May 23, 2013, in Minneapolis, Colleges and Universities (HBCUs), University, representing four-year public Minnesota; May 30, 2013, in San Hispanic-Serving Institutions, American institutions. Francisco, California; and June 4, 2013, Indian Tribally Controlled Colleges and Elizabeth Hicks, Massachusetts Institute of Technology, and Joe Weglarz (alternate), in Atlanta, Georgia. Transcripts from the Universities, Alaska Native and Native Marist College, representing private, public hearings are available at http:// Hawaiian-Serving Institutions, nonprofit institutions. www2.ed.gov/policy/highered/reg/ Predominantly Black Institutions, and Deborah Bushway, Capella University, and hearulemaking/2012/index.html. other institutions with a substantial Valerie Mendelsohn (alternate), American
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Career College, representing private, for- State authorization of distance agreement with the State where the profit institutions. education; State authorization of foreign institution providing that educational Casey McGuane, Higher One, and Bill locations of domestic institutions; cash program is located. Such an agreement Norwood (alternate), Heartland Payment management; retaking coursework; and can provide institutions located in Systems, representing institutional third- party servicers. PLUS loan adverse credit history. Under participating States with greater ease by Russ Poulin, WICHE Cooperative for the protocols, a final consensus would which to achieve State authorization in Educational Technologies, and Marshall Hill have to include consensus on all six multiple States. However, we strongly (alternate), National Council for State issues, which was not achieved in these believe that a State should be active in Authorization Reciprocity Agreements, negotiations. If consensus were reached, protecting its own students, and representing distance education providers. we would have been required to therefore such agreements should not Dan Toughey, TouchNet, and Michael propose the agreed upon language. As it prohibit a participating State from Gradisher (alternate), Pearson Embanet, was not reached, there is no such enforcing its own consumer protection representing business and industry. requirement; the Department has laws. Thus, any reciprocity agreement Paul Kundert, University of Wisconsin Credit Union, and Tom Levandowski discretion with regard to the regulations that would prohibit a participating State (alternate), Wells Fargo Bank Law it proposes on the negotiated issues. from enforcing its own consumer Department, Consumer Lending & Corporate Significant Proposed Regulations: We protection laws would not comply with Regulatory Division, representing lenders, discuss substantive issues under the our proposed definition of a State community banks, and credit unions. sections of the proposed regulations to authorization reciprocity agreement, nor Leah Matthews, Distance Education and which they pertain. Generally, we do meet the requirements for State Training Council, and Elizabeth Sibolski not address proposed regulatory authorization under 34 CFR 600.9. (alternate), Middle States Commission on provisions that are technical or § 600.9 State Authorization Higher Education, representing accrediting otherwise minor in effect. agencies. State Authorization of Distance or Carney McCullough, U.S. Department of § 600.2 Definitions Education, representing the Department. Correspondence Education Providers Pamela Moran, U.S. Department of State Authorization Reciprocity Statute: Section 101(a)(2) of the HEA Education, representing the Department. Agreement defines the term ‘‘institution of higher The negotiated rulemaking committee Statute: Section 101(a)(2) of the HEA education’’ to mean, in part, an met to develop proposed regulations on defines the term ‘‘institution of higher educational institution in any State that February 19–21, 2014, March 26–28, education’’ to mean, in part, an is legally authorized within the State to 2014, and April 23–25, 2014. During the educational institution in any State that provide a program of education beyond March session, the Department is legally authorized within the State to secondary education. Section 102(a) of proposed adding a negotiated provide a program of education beyond the HEA provides, by reference to rulemaking session to the schedule to secondary education. Section 102(a) of section 101(a)(2) of the HEA, that a give the negotiators more time to the HEA provides, by reference to proprietary institution of higher consider the issues and reach consensus section 101(a)(2) of the HEA, that a education and a postsecondary on proposed regulatory language. The proprietary institution of higher vocational institution must be similarly negotiators agreed to add a fourth and education and a postsecondary authorized within a State. final session. On April 11, 2014, we vocational institution must be similarly Current Regulations: Following published in the Federal Register (79 authorized within a State. negotiations that occurred in 2010 on a FR 20139) a document announcing the Current Regulations: None. number of program integrity issues, the addition of a fourth session. That final Proposed Regulations: The Department promulgated a regulation in session was held on May 19–20, 2014. Department proposes to add under § 600.9(c) regarding the State At its first meeting, the negotiating § 600.2 a definition of a ‘‘State authorization of institutions providing committee reached agreement on its authorization reciprocity agreement’’. distance education programs (75 FR protocols and proposed agenda. These The Department proposes to define a 66832). On July 12, 2011, in response to protocols provided, among other things, State authorization reciprocity a legal challenge by the Association of that the committee would operate by agreement as an agreement between two Private Sector Colleges and Universities, consensus. Consensus means that there or more States that authorizes an the U.S. District Court for the District of must be no dissent by any member in institution located and legally Columbia vacated § 600.9(c) on order for the committee to have reached authorized in a State covered by the procedural grounds. On August 14, agreement. Under the protocols, if the agreement to provide postsecondary 2012, on appeal, the U.S. Court of committee reached a final consensus on education through distance education or Appeals for the D.C. Circuit ruled that all issues, the Department would use the correspondence courses to students in § 600.9(c) was not a logical outgrowth of consensus-based language in its other States covered by the agreement the Department’s proposed rules proposed regulations. Furthermore, the and does not prohibit a participating published at 75 FR 34806 (June 18, Department would not alter the State from enforcing its own consumer 2010) and vacated the regulation. consensus-based language of its protection laws. Therefore the Department needed to go proposed regulations unless the Reasons: The HEA requires that an through a new rulemaking and public Department reopened the negotiated institution be legally authorized in comment process. rulemaking process or provided a States to provide a program of education The vacated regulations under written explanation to the committee beyond secondary education for § 600.9(c) had provided that, if an members regarding why it decided to purposes of institutional eligibility for institution is offering postsecondary depart from that language. funding under the HEA. One way a education through distance or During the first meeting, the State could authorize an institution that correspondence education to students in negotiating committee agreed to provides postsecondary education a State in which it is not physically negotiate an agenda of six issues related through distance education or located, or in which it is otherwise to student financial aid. These six issues correspondence courses to students in subject to State jurisdiction as were: Clock-to-credit-hour conversion; that State is to enter into a reciprocity determined by the State, the institution
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would be required to meet any State institution’s main campus, as identified institution would need to document that requirements in order to legally offer by the Department of Education and the there is a State complaint process in postsecondary distance or institution’s accrediting agency, is each State in which the students reside. correspondence education in that State. located, to review and take appropriate This State process must include steps to Furthermore, an institution was action on complaints from any of those review and appropriately act in a timely required to be able to provide, upon enrolled students concerning the manner on complaints by any of those request, documentation of the State’s institution. students concerning the institution, approval for the distance or Reasons: These proposed regulations including enforcing applicable State correspondence education to the would operationalize the requirement in law. Students enrolled in programs Secretary. the HEA that an institution described in offered through distance education or Proposed Regulations: Under § 600.9(a)(1) be legally authorized in a correspondence courses would therefore proposed § 600.9(c)(1)(i), an institution State to provide a program of education be able to access a complaint process described under § 600.9(a)(1) that offers beyond secondary education for under both current § 600.9(a)(1), which postsecondary education through purposes of institutional eligibility for requires a process in the State in which distance education or correspondence funding under the HEA in the case of the institution is physically located, and courses to students in a State in which institutions providing distance proposed § 600.9(c)(2), which requires a it is not physically located or in which education or correspondence courses in process in a student’s State of residence. it is otherwise subject to State States that have State authorization Because a State authorization jurisdiction as determined by the State, requirements. It is reasonable to expect reciprocity agreement may also except as provided in § 600.9(c)(1)(ii), that, if a State has requirements designate a State process for these would need to meet any State regarding its approval for an institution complaints, an institution could requirements in order to legally offer to offer postsecondary educational alternatively show that it was covered postsecondary distance or programs through distance education or by that agreement’s process for resolving correspondence education in that State. correspondence courses in the State, complaints. An institution would be required to then an institution would have to meet document to the Secretary the State’s those State requirements to be State Authorization of Foreign approval upon request. considered legally authorized to operate Additional Locations and Branch Under proposed § 600.9(c)(1)(ii), if an in that State for purposes of institutional Campuses of Domestic Institutions institution described under § 600.9(a)(1) eligibility for funding under the HEA Statute: Sections 101(a)(2), 102(a)(1), offers postsecondary education through and that the institution would be able to 102(b)(1)(B), and 102(c)(1)(B) of the distance education or correspondence demonstrate that it has met those HEA require an educational institution courses in a State that participates in a requirements. Similarly, in the case to be legally authorized in a State to State authorization reciprocity where a State is participating in a State provide a program of education beyond agreement, and the institution offering authorization reciprocity agreement, an secondary education in order to be the program is located in a State where institution described in § 600.9(a)(1) eligible to apply to participate in it is covered by such an agreement, the that participates in such agreement programs approved under the HEA, institution would be considered to be should be able to meet any requirements unless an institution meets the legally authorized to offer of such an agreement to be considered definition of a foreign institution. postsecondary distance or legally authorized to operate in a State Current Regulations: Although the correspondence education in the State and to demonstrate that it meets those State authorization regulations in students enrolled in the program reside, requirements. current §§ 600.4(a)(3), 600.5(a)(4), subject to any limitations in that We have previously stated that, with 600.6(a)(3), and 600.9 delineate the agreement. An institution would be respect to institutions subject to 34 CFR requirements for State authorization of required to document its coverage under 600.9(a), State authorization for an institutions, they do not specifically such an agreement to the Secretary upon institution must include a process address State authorization request. where the State reviews and requirements for foreign locations of In addition, under proposed appropriately acts on complaints arising domestic institutions. § 600.9(c)(2)(i), if an institution under State law (75 FR 66865–66, Oct. Proposed Regulations: The proposed described under § 600.9(a)(1) is offering 29, 2010). We further clarified in Dear regulations would specify the postsecondary education through Colleague Letter GEN–14–04 that, while requirements for State authorization of distance education or correspondence a State may refer the review of foreign additional locations and branch courses to students residing in a State in complaints concerning an institution to campuses of domestic institutions. which it is not physically located, in another entity, the final authority to Proposed § 600.9(d)(1) would specify order for the institution to be considered ensure that complaints are resolved the requirements for legal authorization legally authorized in that State, the timely is with the State. Similarly, we for any foreign additional location at institution would be required to believe that States should also play an which a student can complete 50 document that there is a State process important role in the protection of percent or more of an educational in each State in which its enrolled students who enroll in postsecondary program, and for any foreign branch students reside to review and take educational programs provided through campus. Proposed § 600.9(d)(1)(i) would appropriate action on complaints from distance education or correspondence require these additional locations and any of those enrolled students courses. Therefore, just like institutions branch campuses to be legally concerning the institution, including physically located in a State, in order authorized to operate by an appropriate enforcing applicable State law. for an institution offering postsecondary government authority in the country Alternatively, under § 600.9(c)(2)(ii), an educational programs through distance where the foreign additional location or institution could document that it was education or correspondence courses to branch campus is physically located, covered under a State authorization students residing in one or more States unless the additional location or branch reciprocity agreement which included a in which the institution is not campus is located on a U.S. military process, in either the States in which physically located to be considered base and is exempt from obtaining such students reside or the State in which the legally authorized in those States, the authorization from the foreign country.
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Under proposed § 600.9(d)(1)(ii), an campus of the institution is located agencies to approve the addition of institution would be required to provide limits the authorization of the branch campuses, and current documentation of that authorization by institution to exclude the foreign § 602.22(a)(2)(viii), which generally the foreign country to the Department additional location or branch campus, requires accrediting agencies to have upon request. The documentation the foreign additional location or branch substantive change policies that include would be required to demonstrate that campus would not be considered to be the evaluation of additional locations the government authority for the foreign authorized regardless of the percentage that provide at least 50 percent of a country is aware that the additional of the program offered at a foreign program, unless the location meets location or branch campus provides additional location or branch campus. certain exceptions. postsecondary education and does not Reasons: The negotiating committee Because of the protections provided object to those activities. In addition, reached tentative agreement on the by State authorization of the main proposed § 600.9(d)(1)(iii) would proposed regulations related to campus of an institution and accrediting require these additional locations and additional locations or branch campuses agency oversight, the proposed legal branch campuses to be approved in in a foreign location. The Department authorization standard for foreign accordance with the existing regulations did not make substantive changes to the additional locations and branch for the approval of additional locations regulatory language to which the campuses in § 600.9(d)(1)(i), (ii) and (iv) and branch campuses in the regulations committee tentatively agreed. is more lenient than the standard for The proposed regulations would for the Secretary’s recognition of foreign schools, which provides that allow an institution with a foreign accrediting agencies (§ 602.24(a) and legal authorization must be obtained additional location or branch campus to § 602.22(a)(2)(viii)). Proposed from the education ministry, council, or meet the statutory State authorization § 600.9(d)(1)(iv) would require equivalent agency of the country in requirement for the foreign location or institutions to be in compliance with which the institution is located to any additional requirements for legal branch campus in a manner that recognizes both the domestic control of provide an educational program beyond authorization established by the foreign the secondary education level. Under country. Proposed § 600.9(d)(1)(v) the institution as a whole, while ensuring that the foreign location or the proposed regulations, a license for would specify that an institution would an additional location of a U.S. based be required to report the establishment branch campus is legally operating in postsecondary educational institution to or operation of a foreign additional the foreign country in which it is operate from an appropriate foreign location or branch campus to the State located. In addition, the proposed government authority would be in which the main campus of the regulations would recognize the sufficient to demonstrate compliance institution is located at least annually, importance of extending the protections with § 600.9(d)(1)(i). In addition, unlike or more frequently if required by the provided to U.S. students attending an foreign schools, which must provide State. Although these regulations would institution in a State to those attending documentation of legal authorization up not require an institution to obtain at a foreign additional location or front, § 600.9(d)(1)(ii) would require that authorization in the State in which the branch campus. the institution provide documentation main campus is located for the foreign The proposed regulations would only additional location or branch campus, apply to foreign additional locations of the authorization by the foreign § 600.9(d)(1)(vi) would require the and branch campuses of domestic country in which the additional location institution to comply with any institutions. They would not apply to or branch campus is located upon limitations on the establishment or study abroad arrangements that request to demonstrate that the operation of a foreign additional domestic institutions have with foreign government authority for the foreign location or branch campus set by that institutions whereby a student attends a country is aware that the additional State. portion of a program at a separate location or branch provides Proposed § 600.9(d)(2) would require foreign institution, which are regulated postsecondary education and does not that foreign additional locations at under current § 668.5. These proposed object to the institution’s activities. This which less than 50 percent of an regulations also would not apply to would allow the Department to ensure educational program is offered, or will foreign institutions. The requirements that a foreign additional location or be offered, be in compliance with any for additional locations of foreign branch campus actually has the requirements for legal authorization institutions are contained in current appropriate authorization to operate. It established by the foreign country. § 600.54(d). would also demonstrate that a foreign Proposed § 600.9(d)(3) would provide Proposed § 600.9(d)(1) would limit additional location or branch campus is that an institution must disclose to the applicability of the proposed legal not operating under a license for a enrolled and prospective students the authorization and accreditation purpose other than providing information regarding the student requirements to (1) foreign additional postsecondary education and, therefore, complaint process described in locations at which 50 percent or more is in compliance with section 101(a)(2) § 668.43(b), in accordance with 34 CFR of an educational program is offered, or of the HEA, which defines the term 668.41 and would be satisfied by will be offered, and (2) all foreign ‘‘institution of higher education’’ to making this information available to branch campuses. This is consistent mean, in part, an educational institution prospective and enrolled students on with current § 600.10(b)(3) which in any State that is legally authorized the institution’s Web site, which would provides that, generally, title IV within the State to provide a program of then make it available to the general eligibility does not automatically extend education beyond secondary education. public. The requirement would apply to to any branch campus or additional The proposed regulations would require all foreign additional locations and location where the institution provides that the government authority for the branch campuses where students are at least 50 percent of the educational foreign country is aware that the attending and receiving title IV funds, program, so institutions are required to additional location or branch provides regardless of the amount of the program apply for separate approval of such postsecondary education. Although the offered there. locations under current § 600.20. It Department originally proposed Proposed § 600.9(d)(4) would make would also be consistent with current requiring an institution to demonstrate clear that if the State in which the main § 602.24(a), which requires accrediting that the government entity had actively
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consented to the location’s or branch’s applicability of authorizing Proposed § 600.9(d)(4) would make provision of postsecondary education, requirements of the foreign country. clear that if the State limits the again because of the protections Proposed § 600.9(d)(1)(iii) would not authorization of the institution to provided by State authorization of the create a new requirement for accrediting exclude the additional foreign location main campus of an institution and agency approval of foreign additional or branch campus in a foreign country, accrediting agency oversight, the locations or branch campuses. Rather, the additional location or branch committee ultimately agreed that it was approval would be required in campus would not be considered to be only necessary that the foreign accordance with the existing regulations authorized by the State. This would government entity not object to it. for the approval of additional locations mean that a State is not required to Some negotiators suggested that State and branch campuses in the regulations authorize a foreign additional location authorization of the institution’s main for the Secretary’s recognition of or branch campus, but if a State campus and compliance with the accrediting agencies. That is, under the expressly prohibits an institution then accreditation requirements for a foreign current regulations, if an institution the location is not considered to be additional location or branch campus plans to establish a branch campus, the authorized. A State may also provide was sufficient for the location or branch accrediting agency must require the conditions by which an institution must campus to be title IV eligible. However, institution to notify the agency, submit abide by to have its foreign additional the negotiated rulemaking committee a business plan for the branch campus, locations or branch campuses be discussed and tentatively agreed that and wait for accrediting agency authorized. In such an instance, the this standard did not provide enough approval (§ 602.24(a)). For additional institution must abide by those protection for students who would be locations that provide at least 50 percent conditions to be considered authorized. harmed if a country sought to close an of a program, accrediting agencies must additional location or branch campus have substantive change policies that § 668.50 Institutional Disclosures for that it had not authorized to operate. For include the evaluation of additional Distance or Correspondence Programs this same reason, proposed locations that provide at least 50 percent Statute: Section 485(a)(1) of the HEA § 600.9(d)(1)(iv) would require that of a program, unless the location meets provides that an institution must foreign additional locations and branch certain exceptions (§ 602.22(a)(2)(viii)). disclose information about the campuses be in compliance with any In order to facilitate the oversight role institution’s accreditation and State additional requirements for legal of the State in which the institution’s authorization. authorization established by the foreign main campus is located with respect to Current Regulations: None. country. While the committee agreed a foreign additional location or branch Proposed Regulations: The that it was not necessary that the campus, proposed § 600.9(d)(1)(v) Department proposes to add new specific legal authorization would require an institution with a § 668.50, which would require an requirements of proposed main campus in the State to report the institution to disclose certain § 600.9(d)(1)(i) and (ii) would apply to establishment or operation of a foreign information about the institution’s foreign additional locations at which additional location or branch campus to distance education programs or less than 50 percent of an educational the State at least annually, or more correspondence courses to enrolled and program is offered, or will be offered frequently if required by the State. prospective students. The Department (discussed above), the committee agreed Although the proposed regulations proposes seven general disclosures to be that proposed § 600.9(d)(2) would would not specifically require an made publicly available and three require that foreign additional locations institution to obtain authorization in the individualized disclosures that will at which less than 50 percent of an State in which the main campus is require direct communication with educational program is offered, or will located for the foreign additional enrolled and prospective students, but be offered, be in compliance with any location or branch campus, in only if certain conditions are met. The requirements for legal authorization recognition that a State may set proposed regulations state that the established by the foreign country. limitations on the establishment or Under the proposed regulations, a operation of foreign locations or branch Secretary may determine the form and foreign additional location or branch campuses other than simply denying content of these disclosures in the campus that is located on a U.S. military eligibility, proposed § 600.9(d)(1)(vi) future. These proposed disclosures will base and is exempt from obtaining legal would provide that an institution must not alter or reduce any other required authorization from the foreign country comply with any State limitations on disclosures that are required in this would be exempt from being legally the establishment or operation of a subpart. authorized to operate by an appropriate foreign additional location or branch For distance education programs and government authority in the country campus set by that State. correspondence courses offered by an where the additional location or branch To ensure that students are aware of institution of higher education, the campus is physically located. Although the complaint process of the State in institution must disclose: some negotiators suggested that all which the main campus of the • How the distance education additional locations or branch campuses institution is located, proposed program or correspondence course is located on U.S. military bases should be § 600.9(d)(3) would require institutions authorized (34 CFR 668.50(b)(1)); exempt from the laws and regulations of to disclose information regarding the • How to submit complaints to the the countries in which they are located student complaint process to enrolled appropriate State agency responsible for because they are considered to be and prospective students at that foreign student complaints or to the state located on ‘‘U.S. soil,’’ the Department’s additional location or branch campus. authority reciprocity agreement, understanding is that U.S. military bases To minimize burden, the proposed whichever is appropriate based on how are not automatically considered to be regulations would require that this the program or course is authorized (34 located on ‘‘U.S. soil.’’ Rather, they are disclosure be made in accordance with CFR 668.50(b)(2)); governed by individual Status of Forces the existing consumer disclosure • How to submit complaints to the Agreements and vary by country and requirements of subpart D of part 668, appropriate State agency in the base. These regulations would defer to rather than through the establishment of student’s State of residence (34 CFR those agreements regarding the a separate disclosure. 668.50(b)(3));
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• Any adverse actions taken by a agreement would also be required to meet the prerequisites for licensure or State or accrediting agency against an provide contact information for the certification in States where none of its institution of higher education’s individual responsible for handling enrolled students reside, but does distance education program or such complaints, as set out in the State require an institution to disclose correspondence course and the year that authorization reciprocity agreement, if whether it has made such the action was initiated for the previous applicable. determinations and, if it has made a five calendar years (34 CFR 668.50(b)(4) Under proposed § 668.50(b)(3), an determination, whether its programs and 34 CFR 668.50(b)(5)); institution would be required to meet such prerequisites. • Refund policies that the institution disclose the process for submitting Under proposed § 668.50(c), an is required to comply with (34 CFR complaints to the appropriate State institution offering programs solely 668.50(b)(6)); agency for all States in which the through distance education or • The applicable licensure or institution enrolls students in distance correspondence courses would be certification requirements for a career a education programs or correspondence required to provide individualized student prepares to enter, and whether courses, regardless of whether the disclosures to students to disclose the program meets those requirements institution is authorized by the State in certain information, but only if certain (34 CFR 668.50(b)(7)). which the main campus of the conditions are met. An individualized Additionally, these institutions must institution is located or by a State disclosure would be providing a also disclose directly: authorization reciprocity agreement. • disclosure through direct contact, such When a distance education program Under proposed § 668.50(b)(4) and as through an email or written or correspondence course does not meet (5), an institution would be required to correspondence, unlike a public the licensure or certification disclose any adverse actions a State disclosure, such as through the requirements for a State to all entity or an accrediting agency has program’s Web site or in promotional prospective students (34 CFR initiated related to the institution’s material. 668.50(c)(1)(i)); distance education programs or Under proposed § 668.50(c)(1)(i), an • When an adverse action is taken correspondence courses for a five institution would be required to provide against an institution’s postsecondary calendar year period prior to the year in an individualized disclosure to education programs offered by the which the institution makes the prospective students when the institution solely through distance disclosure. education or correspondence student to Under proposed § 668.50(b)(6), an institution determines that an each enrolled and prospective student institution would be required to educational program is being offered (34 CFR 668.50(c)(2)); and disclose, for any State in which the solely through distance education or • Any determination that a program institution enrolls students in distance correspondence courses, excluding ceases to meet licensure or certification education programs or correspondence internships or practicums, does not requirements to each enrolled and courses, any State policies requiring the meet licensure or certification prospective student (34 CFR institution to refund unearned tuition prerequisites in the State of the 668.50(c)(2)). and fees. student’s residence. The institution Under proposed § 668.50(b)(1), an Under proposed § 668.50(b)(7), an would be required to obtain an institution would be required to institution would be required to acknowledgment from the student that disclose whether the program offered by disclose the applicable educational the communication was received prior the institution through distance prerequisites for professional licensure to the student’s enrollment in the education or correspondence courses is or certification which the program program. The Department believes this authorized by each State in which prepares the student to enter in any can be solved relatively easily by students enrolled in the program reside. State in which the program’s enrolled including attestation as part of a If an institution is authorized through a students reside, or any other State for student’s enrollment agreement or other State authorization reciprocity which the institution has made a paperwork required for new students by agreement, the institution would be determination regarding such the institution, which an institution required to disclose its authorization prerequisites. The institution would would already prepare and maintain. status under such an agreement. also be required to disclose whether the Under proposed § 668.50(c)(1)(ii), an Under proposed § 668.50(b)(2)(i), an distance education program or institution would be required to provide institution authorized by a State agency correspondence course does or does not an individualized disclosure to enrolled would be required to disclose the satisfy those applicable educational and prospective students of any adverse process for submitting complaints to the prerequisites for professional licensure action initiated by a State or an appropriate State agency in the State in or certification. Distance education accrediting agency related to the which the main campus of the programs and correspondence courses institution’s programs, including the institution is located, including enroll students from a multitude of years in which such actions were providing contact information for the States where they do not have a initiated, and when the institution appropriate individuals at the State physical presence and their programs determines that its program ceases to agencies that handle consumer may not necessarily lead to licensure or meet licensure or certification complaints. certification, which would be important prerequisites of a State. These Under proposed § 668.50(b)(2)(ii), an for students to know. For any State as individualized disclosures would have institution that is authorized by a State to which an institution has not made a to occur within 30 days and 7 days of authorization reciprocity agreement determination with respect to the the institution becoming aware of the would be required to disclose the licensure or certification requirement, event, respectively. complaint process established by the an institution would be required to Reasons: The proposed regulations in reciprocity agreement, if the agreement disclose a statement to that effect. This § 668.50 would increase transparency establishes such a process. In addition disclosure does not require an and accountability in the distance to the State authorization reciprocity institution to make a determination with education sector by providing enrolled agreement’s complaint process, an regard to how its distance education and prospective students with essential institution authorized through such an programs or correspondence courses information about postsecondary
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institutions that offer distance education how their distance education program referred to as an ‘‘economically programs and correspondence courses. or correspondence course was significant’’ rule); Through these proposed authorized. (2) Create serious inconsistency or requirements, a student enrolled or Providing information to a student otherwise interfere with an action taken planning to enroll in programs offered about tuition refund policies is also or planned by another agency; through distance education or important as it may impact a student’s (3) Materially alter the budgetary correspondence courses would receive finances and their decision to enroll in impacts of entitlement grants, user fees, information regarding whether programs a distance education program or or loan programs or the rights and or courses are authorized by the State in correspondence courses. This obligations of recipients thereof; or which he or she lives and whether those information can help a student navigate (4) Raise novel legal or policy issues programs or courses also meet State the refund process if they decide to arising out of legal mandates, the prerequisites for licensure and withdraw from a course or program. President’s priorities, or the principles certification. Without such Given the multi-State environment in stated in the Executive order. requirements, students could which distance education programs and This proposed regulatory action is a unknowingly enroll in programs that do correspondence courses may be offered, significant regulatory action subject to not qualify them for Federal student aid it is important that students understand review by OMB under section 3(f) of or that do not fulfill requirements for and make informed decisions about the Executive Order 12866. employment in a particular profession educational options available to them We have also reviewed these or field, either in the State in which through distance and correspondence regulations under Executive Order they reside or in the State in which they education. As such, these proposed 13563, which supplements and intend to seek employment. regulations would require that certain explicitly reaffirms the principles, These requirements would also individualized disclosures be made to structures, and definitions governing strengthen the effectiveness of the students, but only in certain situations. regulatory review established in program integrity triad by ensuring that Under these proposed regulations, when Executive Order 12866. To the extent enrolled and prospective students are a State or accrediting agency initiates an permitted by law, Executive Order aware of any adverse actions a State or adverse action against an institution 13563 requires that an agency— accrediting agency has initiated against offering programs offered through (1) Propose or adopt regulations only an institution that may potentially distance education or correspondence upon a reasoned determination that impact the post-secondary success or courses or if a program does not meet their benefits justify their costs financial well-being of students. This or ceases to meet prerequisites for State (recognizing that some benefits and requirement would also limit the time licensure or certification, this costs are difficult to quantify); period for disclosing such information information will be directly (2) Tailor its regulations to impose the to the past five years, so that institutions communicated to enrolled and least burden on society, consistent with would not be required to disclose every prospective students. In those obtaining regulatory objectives and adverse action ever made against them, situations, these disclosures will help a taking into account—among other things and institutions that have improved student evaluate whether enrollment or and to the extent practicable—the costs over time will be able to distance continued enrollment in a particular of cumulative regulations; themselves from an adverse compliance program is in his or her best interest. (3) In choosing among alternative history. Overall, the public and individualized regulatory approaches, select those We believe it is important to provide disclosures provided under these approaches that maximize net benefits information to students on whatever proposed regulations establish (including potential economic, adverse actions have been initiated important consumer protections within environmental, public health and safety, against an institution regarding its the distance education field and help and other advantages; distributive distance education program or enrolled and prospective students make impacts; and equity); correspondence course regardless of the informed choices about postsecondary (4) To the extent feasible, specify status of the action. For example, if an distance education programs and performance objectives, rather than the institution appeals an adverse action correspondence courses. behavior or manner of compliance a being taken against it by a State, we regulated entity must adopt; and believe that an institution should still Executive Orders 12866 and 13563 (5) Identify and assess available disclose that adverse action to an Regulatory Impact Analysis alternatives to direct regulation, enrolled or prospective student. including economic incentives—such as However, the institution is permitted to Introduction user fees or marketable permits—to provide qualifying information to the Under Executive Order 12866, it must encourage the desired behavior, or student about any appeal that is being be determined whether this regulatory provide information that enables the pursued by the institution regarding its action is ‘‘significant’’ and, therefore, public to make choices. distance education program or subject to the requirements of the Executive Order 13563 also requires correspondence course offered by the Executive order and subject to review by an agency ‘‘to use the best available institution. the Office of Management and Budget techniques to quantify anticipated Additionally, through these (OMB). Section 3(f) of Executive Order present and future benefits and costs as requirements, students would receive 12866 defines a ‘‘significant regulatory accurately as possible.’’ The Office of information about the complaint action’’ as an action likely to result in Information and Regulatory Affairs of processes available to them. This a rule that may— OMB has emphasized that these information should be readily available (1) Have an annual effect on the techniques may include ‘‘identifying to students as a way to ensure economy of $100 million or more, or changing future compliance costs that transparency and to protect students adversely affect a sector of the economy, might result from technological from bad actors in the field. We also productivity, competition, jobs, the innovation or anticipated behavioral believe that students should be environment, public health or safety, or changes.’’ provided with the complaint process for State, local, or tribal governments or We are issuing these proposed their State of residence regardless of communities in a material way (also regulations only on a reasoned
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determination that their benefits would Need for Regulatory Action education providers has increased justify their costs. In choosing among The landscape of higher education steadily. In 2014, market research firm alternative regulatory approaches, we has changed over the last 20 years. Global Industry Analysts projected that selected those approaches that During that time, the role of distance 2015 revenue for the distance education maximize net benefits. Based on the education in the higher education sector industry would reach $107 billion.2 For analysis that follows, the Department has grown significantly. For Fall 1999, the same year, gross output for the believes that these proposed regulations eight percent of all male students and overall non-hospital private Education are consistent with the principles in ten percent of all female students Services sector totaled $332.2 billion.3 Executive Order 13563. participated in at least one distance Distance education has grown to We also have determined that this education course.1 Recent IPEDS data account for roughly one-third of the U.S. regulatory action would not unduly indicate that in the fall of 2013, 26.4 non-hospital private Education Services interfere with State, local, and tribal percent of students at degree-granting, sector. In this aggressive market governments in the exercise of their title IV participating institutions were environment, distance education governmental functions. enrolled in at least one distance providers have looked to expand their education class.1 The emergence of In this Regulatory Impact Analysis we footprint to gain market share. An online learning options has allowed analysis of recent data from IPEDS discuss the need for regulatory action, students to enroll in colleges authorized indicates that 2,301 title-IV- the potential costs and benefits, net in other States and jurisdictions with participating institutions offered 23,434 budget impacts, assumptions, relative ease. According to the National limitations, and data sources, as well as Center for Education Statistics’ programs through distance education in regulatory alternatives we considered. Integrated Postsecondary Education 2014. Approximately 2.8 million Although the majority of the costs Data System (IPEDS), in the fall of 2014, students were exclusively enrolled in related to information collection are the number of students enrolled distance education courses, with 1.2 discussed within this RIA, elsewhere in exclusively in distance education million of those students enrolled in this NPRM under Paperwork Reduction programs totaled 843,107. Distance programs offered by institutions from a Act of 1995, we also identify and further education industry sales have increased different State. Table 1 summarizes the explain burdens specifically associated alongside student enrollment. As number of institutions, programs, and with information collection students continue to embrace distance students involved in distance education requirements. education, revenue for distance by sector.
TABLE 1—2014 PARTICIPATION IN DISTANCE EDUCATION BY SECTOR
Students Institutions Number of Students exclusively in offering distance distance exclusively in out-of-state Sector education education distance distance programs programs education education programs programs
Public 4-year ...... 540 5,967 692,074 144,039 Private Not-for-Profit 4-year ...... 745 6,555 607,224 333,495 Proprietary 4-year ...... 255 5,153 820,630 628,699 Public 2-year ...... 625 5,311 690,771 45,684 Private Not-for-Profit 2-year ...... 15 42 814 388 Proprietary 2-year ...... 87 339 21,421 5,291 Public less-than-2-year ...... 7 10 55 - Private Not-for-Profit less-than- 2-year ...... 1 1 - - Proprietary less-than-2-year ...... 26 56 1,056 382
Total ...... 2,301 23,434 2,834,045 1,157,978
Some States have entered into Agreement (SARA) administered by the However, even where States accept the reciprocity agreements with other States National Council for State Authorization terms of a reciprocity agreement, that in an effort to address the issues that Reciprocity Agreements, which agreement may not apply to all distance education presents, such as establishes standards for the interstate institutions and programs in any given States having differing and conflicting offering of postsecondary distance- State. requirements that institutions of higher education courses and programs. There also has been a significant education will have to adhere to, Through a State authorization growth in the number of American potentially causing increased costs and reciprocity agreement, an approved institutions and programs enrolling burden for those institutions. For institution may provide distance students abroad. As of May 2016, example, as of June 2016, 40 States and education to residents of any other American universities were operating 80 the District of Columbia have entered member State without seeking foreign locations worldwide according into a State Authorization Reciprocity authorization from each member State. to information available from the
1 2014 Digest of Education Statistics: Table 2 Online Learning Industry Poised for $107 3 US Bureau of Economic Analysis GDP-by- 311.15: Number and percentage of students enrolled Billion In 2015 (http://www.forbes.com/sites/ Industry interactive table (http://bea.gov/iTable/ in degree-granting postsecondary institutions, by tjmccue/2014/08/27/online-learning-industry- iTableHtml.cfm?reqid=51&step=51&isuri=1&5101= distance education participation, location of poised-for-107-billion-in-2015/#46857a0966bc). 1&5114=a&5113=61go&5112=1&5111=2014&5102= student, level of enrollment, and control and level 15). of institution: fall 2012 and fall 2013.
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Department’s Postsecondary Education reported to the State where the allow them to pursue the chosen career Participation System (PEPS). Many institution’s main campus is located. upon program completion. The institutions are also allowing foreign • Require that an institution provide licensure disclosure requires students to enroll in distance education public and individualized disclosures to acknowledgment by the student before programs in conjunction with, or in lieu enrolled and prospective students enrollment, which emphasizes the of, taking courses at a foreign location. regarding its programs offered solely importance of ensuring students receive American institutions operating through distance education or that information. It also recognizes that foreign locations are still relatively new. correspondence courses. students may have specific plans for As such, data about the costs involved Discussion of Costs, Benefits, and using their degree, potentially in a new in these operations is limited. Some Transfers State of residence where the program American institutions establishing would meet the relevant prerequisites. locations in other countries have The potential primary benefits of the Students in distance education or at negotiated joint ventures and proposed regulations are: (1) Increased foreign locations of domestic reimbursement agreements with foreign transparency and access to institutional institutions would also benefit from the governments to share the startup costs. and program information, (2) updated disclosure and availability of complaint The Department found no evidence and clarified requirements for State resolution processes that would let them authorization of distance education and suggesting that institutions make know how to submit complaints to the foreign additional locations, and (3) a payments to foreign governments in State in which the main campus of the process for students to access complaint order to operate in the foreign country. institution is located or, for distance resolution in either the State in which With the expansion of these higher education students, the students’ State the institution is authorized or the State education models, the Department of residence. This can help to ensure the in which they reside. availability to students of consumer believes it is important to maintain a We have identified the following minimum standard of State approval for protections and make it more groups and entities we expect to be convenient for students to access those higher education institutions. The affected by the proposed regulations: proposed regulations support States in supports. • Students their efforts to develop standards for • Institutions Institutions this growing sector of higher education. • Federal, State, and local government Institutions will benefit from the The clarified requirements related to Students increased clarity concerning the State authorization also support the requirements and process for State integrity of the Federal student aid Students who made public comments authorization of distance education and programs by not supplying funds to during negotiated rulemaking stated that of foreign additional locations. programs and institutions that are not the availability of online courses Institutions will bear the costs of authorized to operate in a given State. allowed them to earn credentials in an ensuring they remain in compliance Summary of Proposed Changes environment that suited their personal with State authorization requirements, needs. We believe, therefore, that whether through entering into a State The proposed regulations: students would benefit from increased authorization reciprocity agreement or • Require an institution offering transparency about distance education researching and meeting the relevant distance education or correspondence programs. The disclosures of adverse requirements of the States in which they courses to be authorized by each State actions against the programs, refund operate distance education programs. in which the institution enrolls policies, and the prerequisites for The Department does not ascribe students, if such authorization is licensure and whether the program specific costs to the proposed State required by the State, including through meets those prerequisites in States for authorization regulations and associated a State authorization reciprocity which the institution has made those definitions because it is presumed that agreement. determinations would provide valuable institutions are complying with • Define the term ‘‘State authorization information that can help students make applicable State authorization reciprocity agreement’’ to be an more informed decisions about which requirements. Additionally, nothing in agreement between two or more States institution to attend. Increased access to the proposed regulations would require that authorizes an institution located in information could help students institutions to participate in distance a State covered by the agreement to identify programs that offer credentials education. However, in the event that provide postsecondary education that potential employers recognize and the clarification of the State through distance education or value. Additionally, institutions would authorization requirements in the correspondence courses to students in have to provide an individualized proposed regulations, among other other States covered by the agreement. disclosure to enrolled and prospective factors, would provide an incentive for • Require an institution to document students of adverse actions against the more institutions to be involved to offer the State process for resolving institution and when programs offered distance education courses, the complaints from students enrolled in solely through distance education or Department has estimated some costs as programs offered through distance correspondence courses do not meet an illustrative example of what education or correspondence courses. licensure or certification prerequisites institutions can expect from complying • Require that an additional location in the student’s State of residence. The with State authorization requirements. or branch campus located in a foreign disclosure regarding adverse actions The costs for each institution will location be authorized by an appropriate would help ensure that students have vary based on a number of factors, government agency of the country information about potential wrongdoing including the institutions’ size, the where the additional location or branch by institutions. Similarly, disclosures extent to which an institution provides campus is located and, if at least half of regarding whether a program meets distance education, and whether it an educational program can be applicable licensure or certification participates in a State authorization completed at the location or branch requirements would provide students reciprocity agreement or chooses to campus, be approved by the with valuable information about obtain authorization in specific States. institution’s accrediting agency and be whether attending the program will The Department has estimated annual
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costs for institutions that participate in institutions with 20,001 or more on-line million annually in direct fees and a reciprocity agreement using cost out-of-State students.5 charges associated with distance information for the National Council of These costs are only one example of education authorization. Additional State Authorization Reciprocity an arrangement institutions can use to State fees to institutions applied were Agreements.4 We assume that meet distance education authorization $3,000 for institutions under 2,500 FTE, participation in such agreements will requirements, so actual costs will vary. $6,000 for 2,500 to 9,999 FTE, and vary by sector and size of institution. As seen in Table 2 below, the $10,000 for institutions with 10,000 or Additionally, States that participate in Department applied the costs associated more FTE. The Department welcomes these arrangements may charge their with a SARA arrangement to all 2,301 comments on the assumptions and own fees, which vary by size and type title IV participating institutions estimates presented here and will of institution and range from zero reported as offering distance education consider them in the analysis of the dollars to $40,000 annually for programs in IPEDS for a total of $19.3 final regulation.
TABLE 2—ESTIMATED COSTS OF STATE AUTHORIZATION OF DISTANCE EDUCATION
Additional Institutions Count SARA Fees State fees
Public 2-year or less Under 2,500 ...... 273 546,000 819,000 2,500 to 9,999 ...... 290 1,160,000 1,740,000 10,000 or more ...... 69 414,000 690,000 Private Not-for-Profit 2-year or less Under 2,500 ...... 16 32,000 48,000 2,500 to 9,999 ...... – ...... 10,000 or more ...... – ...... Proprietary 2-year or less Under 2,500 ...... 109 218,000 327,000 2,500 to 9,999 ...... 3 12,000 18,000 10,000 or more ...... 1 6,000 10,000 Public 4-year Under 2,500 ...... 92 184,000 276,000 2,500 to 9,999 ...... 235 940,000 1,410,000 10,000 or more ...... 213 1,278,000 2,130,000 Private Not-for-Profit 4-year Under 2,500 ...... 474 948,000 1,422,000 2,500 to 9,999 ...... 227 908,000 1,362,000 10,000 or more ...... 44 264,000 440,000 Proprietary 4-year Under 2,500 ...... 198 396,000 594,000 2,500 to 9,999 ...... 39 156,000 234,000 10,000 or more ...... 18 108,000 180,000
Total ...... 2,301 7,570,000 11,700,000
Domestic institutions that choose to is discussed in more detail under the the Federal government in operate foreign locations may incur Paperwork Reduction Act of 1995 administering the title IV, HEA costs from complying with the section of this preamble. In total, the programs. The proposed regulations requirements of the foreign country or proposed regulations are estimated to would not require States to take specific the State of their main campus, and increase burden on institutions actions related to authorization of these will vary based on the location, participating in the title IV, HEA distance education programs. States the State, the percentage of the program programs by 35,365 hours. The would choose the systems they offered at the foreign location, and other monetized cost of this burden on establish, their participation in a State factors. As with distance education, institutions, using wage data developed authorization reciprocity agreement, nothing in the regulation requires using Bureau of Labor Statistics BLS and the fees they charge institutions and institutions to operate foreign locations data available at: www.bls.gov/ncs/ect/ have the option to do nothing in and we assume that institutions have sp/ecsuphst.pdf, is $ 1,292,591. This response to the proposed regulations. complied with applicable requirements burden estimate is based on an hourly Therefore, the Department has not in operating their foreign locations. rate of $36.55. quantified specific annual costs to States based on the proposed In addition to the costs institutions Federal, State, and Local Governments incur from identifying State regulations. requirements or entering a State The proposed regulations maintain Net Budget Impacts authorization reciprocity agreement to the important role of States in comply with the proposed regulations, authorizing institutions and in The proposed regulations are not institutions will incur costs associated providing consumer protection for estimated to have a significant net with the proposed disclosure residents. The increased clarity about budget impact in costs over the 2017– requirements. This additional workload State authorization should also assist 2026 loan cohorts. A cohort reflects all
4 NC–SARA Fees http://nc-sara.org/what-does- 5 State Fees for In-state Institutions http:// sara.org/state-fees-regarding-sara (National Council institution-do. www.nc-sara.org/state-fees-regarding-sarawww.nc- for State Authorization Reciprocity Agreement).
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loans originated in a given fiscal year. including data from the National foreign locations without considering Consistent with the requirements of the Student Loan Data System, and data specific alternative proposals. Credit Reform Act of 1990, budget cost from a range of surveys conducted by Clarity of the Regulations estimates for the student loan programs the National Center for Education reflect the estimated net present value of Statistics such as the 2012 National Executive Order 12866 and the all future non-administrative Federal Postsecondary Student Aid Survey. Data Presidential memorandum ‘‘Plain costs associated with a cohort of loans. from other sources, such as the U.S. Language in Government Writing’’ In the absence of evidence that the Census Bureau, were also used. require each agency to write regulations proposed regulations will significantly that are easy to understand. change the size and nature of the Alternatives Considered The Secretary invites comments on student loan borrower population, the In the interest of promoting good how to make these proposed regulations Department estimates no significant net governance and ensuring that these easier to understand, including answers budget impact from the proposed proposed regulations produce the best to questions such as the following: regulations. While the clarity about the possible outcome, the Department • Are the requirements in the requirements for State authorization and reviewed and considered various proposed regulations clearly stated? the option to use State authorization proposals from both internal sources as • Do the proposed regulations contain reciprocity agreements may expand the well as from non-Federal negotiators. technical terms or other wording that availability of distance education; that We summarize below the major interferes with their clarity? does not necessarily mean the volume of proposals that we considered but • Does the format of the proposed student loans will expand greatly. ultimately declined to adopt in these regulations (grouping and order of Additional distance education could proposed regulations. sections, use of headings, paragraphing, serve as a convenient option for The Department has addressed State etc.) aid or reduce their clarity? students to pursue their education and authorization during two previous • Would the proposed regulations be loan funding may shift from physical to rulemaking sessions, one in 2010 and easier to understand if we divided them online campuses. Distance education the other in 2014. In 2010, State into more (but shorter) sections? (A has expanded significantly already and authorization of distance education was ‘‘section’’ is preceded by the symbol the proposed regulations are only one not a topic addressed in the ‘‘§ ’’ and a numbered heading; for factor in institutions’ plans within this negotiations, but the Department example, § 668.50 Institutional field. The distribution of title IV, HEA addressed the issue in the final rule in disclosures for distance education or program funding could continue to response to public comment. The correspondence education programs.) evolve, but the overall volume is also distance education provision in the • Could the description of the driven by demographic and economic 2010 regulation was struck down in proposed regulations in the conditions that are not affected by the court on procedural grounds, leading to SUPPLEMENTARY INFORMATION section of proposed regulations and State the inclusion of the issue in the 2014 this preamble be more helpful in authorization requirements are not negotiations. The 2014 proposal would making the proposed regulations easier expected to change loan volumes in a have required, in part, an institution of to understand? If so, how? way that would result in a significant higher education to obtain State • What else could we do to make the net budget impact. Likewise, the authorization wherever its students proposed regulations easier to availability of options to study abroad at were located. That proposal would also understand? foreign locations of domestic have allowed for reciprocity agreements To send any comments that concern institutions offers students flexibility between States as a form of State how the Department could make these and potentially rewarding experiences, authorization, including State proposed regulations easier to but is not expected to significantly authorization reciprocity agreements understand, see the instructions in the change the amount or type of loans administered by a non-State entity. The ADDRESSES section. Department and participants of the 2014 students use to finance their education. Initial Regulatory Flexibility Analysis Therefore, the Department does not rulemaking session were unable to reach estimate that the requirements that an consensus. The proposed regulations would additional location or branch campus As it developed the proposed affect institutions that participate in the located in a foreign location be regulations, the Department considered title IV, HEA. The U.S. Small Business authorized by an appropriate adopting the 2010 or 2014 proposals. Administration (SBA) Size Standards government agency of the country However, the 2010 rule did not allow define ‘‘for-profit institutions’’ as ‘‘small where the additional location or branch for reciprocity agreements and did not businesses’’ if they are independently campus is located and, if at least half of require a student complaint process for owned and operated and not dominant an educational program can be distance education students if a State in their field of operation with total completed at the location or branch did not already require it. The 2014 annual revenue below $7,000,000. The campus, be approved by the proposal raised concerns about SBA Size Standards define ‘‘not-for- institution’s accrediting agency and be complexity and level of burden profit institutions’’ as ‘‘small reported to the State where the involved. The Department therefore organizations’’ if they are independently institution’s main campus is located used elements of both proposals in owned and operated and not dominant will have a significant budget impact on formulating these proposed regulations. in their field of operation, or as ‘‘small title IV, HEA programs. The Department Using the 2010 rule as a starting point, entities’’ if they are institutions welcomes comments on this analysis the proposed regulations allow for State controlled by governmental entities and will consider them in the authorization reciprocity agreements with populations below 50,000. Under development of the final rule. and provide a student complaint these definitions, approximately 4,267 process requirement to achieve a of the IHEs that would be subject to the Assumptions, Limitations and Data balance between appropriate oversight proposed paperwork compliance Sources and burden level. The Department and provisions of the final regulations are In developing these estimates, a wide non-Federal negotiators reached small entities. Accordingly, we have range of data sources were used, agreement on the provisions related to prepared this initial regulatory
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flexibility analysis to present an Description of and, Where Feasible, an higher education market. Overall, as of estimate of the effect on small entities Estimate of the Number of Small Fall 2013, approximately 13 percent of of the proposed regulations. The Entities to which the Regulations Will students receive their education Department welcomes comments on this Apply exclusively through distance education analysis and requests additional These proposed regulations would while 73 percent took no distance information to refine it. affect IHEs that participate in the education courses. However, at Federal Direct Loan Program and proprietary institutions almost 52 Description of the Reasons That Action borrowers. Approximately 60 percent of percent of students were exclusively by the Agency Is Being Considered IHEs qualify as small entities, even if distance education students and 40 percent had not enrolled in distance The Secretary is proposing to amend the range of revenues at the not-for- education courses. As discussed above, the regulations governing the title IV, profit institutions varies greatly. Using data from IPEDS, the Department we assume that most of the proprietary HEA programs to provide clarity to the institutions offering a substantial requirements for, and options to: obtain estimates that approximately 4,267 IHEs participating in the title IV, HEA amount of distance education are not State authorization of distance programs qualify as small entities— small entities, but if not-for-profit education, correspondence courses, and 1,878 are not-for-profit institutions, institutions expand their role in the foreign locations; document the process 2,099 are for-profit institutions with distance education sector, small entities to resolve complaints from distance programs of two years or less, and 290 could increase their share of revenue. education students in the State in which are for-profit institutions with four-year On the other hand, small entities that they reside; and make disclosures about programs. The Department believes that operate physical campuses could face distance education and correspondence most proprietary institutions that are more competition from distance courses. heavily involved in distance education education providers. The potential should not be considered small entities reshuffling of resources within higher Succinct Statement of the Objectives of, education would occur regardless of the and Legal Basis for, the Proposed because the scale required to operate substantial distance education programs proposed regulations, but the clarity Regulations would put them above the relevant provided by the distance education Section 101(a)(2) of the HEA defines revenue threshold. However, the private requirements and the acceptance of the term ‘‘institution of higher non-profit sector’s involvement in the State authorization reciprocity education’’ to mean, in part, an field may mean that a significant agreementss could accelerate those changes. educational institution in any State that number of small entities could be is legally authorized within the State to affected. The Department also expects However, in order to accommodate students through distance learning, provide a program of education beyond this to be the case for foreign locations institutions would face a number of secondary education. Section 102(a) of of domestic institutions, with proprietary institutions operating costs, including the costs of complying the HEA provides, by reference to foreign locations unlikely to be small with the authorization requirements of section 101(a)(2) of the HEA, that a entities and a number of private not-for- the proposed regulations. As with the proprietary institution of higher profit classified as small entities broader set of institutions, the costs for education and a postsecondary involved. small entities would vary based on the vocational institution must be similarly Distance education offers small scope of the distance education they authorized within a State. Section entities, particularly not-for-profit choose to provide, the States in which 485(a)(1) of the HEA provides that an entities of substantial size that are they operate, and the size of the institution must disclose information classified as small entities, an institution. Applying the same costs about the institution’s accreditation and opportunity to serve students who could from the National Council for State State authorization. not be accommodated at their physical Authorization Reciprocity Agreements locations. Institutions that that choose as in the Regulatory Impact Analysis, to provide distance education could we estimate that small entities will face potentially capture a larger share of the annual costs of $7.0 million.
TABLE 3—ESTIMATED COSTS FOR STATE AUTHORIZATION OF DISTANCE EDUCATION FOR SMALL ENTITIES
Additional Institutions Count SARA fees state fees
Private Not-for-Profit 2-year or less Under 2,500 ...... 16 32,000 48,000 2,500 to 9,999 ...... — 10,000 or more ...... — Proprietary 2-year or less Under 2,500 ...... 109 218,000 327,000 2,500 to 9,999 ...... — — — 10,000 or more ...... — — — Private Not-for-Profit 4-year Under 2,500 ...... 474 948,000 1,422,000 2,500 to 9,999 ...... 227 908,000 1,362,000 10,000 or more ...... 44 264,000 440,000 Proprietary 4-year Under 2,500 ...... 198 396,000 594,000 2,500 to 9,999 ...... — — — 10,000 or more ...... — — — Total 1,068 2,766,000 4,193,000
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Description of the Projected Reporting, requirement to the hours and costs reassignment of existing staff from other Recordkeeping and Other Compliance estimated in the Paperwork Reduction activities. In total, these changes are Requirements of the Regulations, Act of 1995 section of the preamble. estimated to increase burden on small Including an Estimate of the Classes of This additional workload is discussed entities participating in the title IV, HEA Small Entities That Will Be Subject to in more detail under the Paperwork programs by 13,981 hours. The the Requirement and the Type of Reduction Act of 1995 section of the monetized cost of this additional burden Professional Skills Necessary for preamble. Additional workload would on institutions, using wage data Preparation of the Report or Record normally be expected to result in developed using BLS data available at estimated costs associated with either www.bls.gov/ncs/ect/sp/ecsuphst.pdf, is Table 3 relates the estimated burden the hiring of additional employees or $510,991. This cost was based on an of each information collection opportunity costs related to the hourly rate of $36.55.
TABLE 4—PAPERWORK REDUCTION ACT BURDEN FOR SMALL ENTITIES
OMB control Provision Reg section number Hours Costs
Reporting related to foreign additional locations or branch campuses. 600.9 ...... 1845–NEW1 ...... 86 3,158 Public disclosure made to enrolled and prospective students in the in- 668.50(b) ...... 1845–NEW2 ...... 13,623 497,921 stitution’s distance education programs or correspondence courses. Requires 7 disclosures related to State authorization, complaints process, adverse actions, refund policies, and whether the program meets prerequisites for licensure or certification.. Individualized disclosure to and attestation by enrolled and prospective 668.50(c) ...... 1845–NEW2 ...... 271 9,912 students of distance education programs about adverse actions or the program not meeting licensure requirements in the student’s State..
Total ...... 13,981 510,991
Identification, to the Extent Practicable, submitted a copy of these sections, and According to information available of All Relevant Federal Regulations an Information Collection Request (ICR) from the Department’s Postsecondary that May Duplicate, Overlap, or to OMB for its review. Education Participation System (PEPS), Conflict with the Regulations A Federal agency may not conduct or there are currently 80 domestic The regulations are not expected to sponsor a collection of information institutions with identified additional duplicate, overlap, or conflict with unless OMB approves the collection locations in 60 foreign countries; 35 existing Federal regulations. under the PRA and the corresponding public institutions, 42 private, not-for- information collection instrument profit institutions, and 3 private, for- Alternatives Considered displays a currently valid OMB control profit institutions. number. Notwithstanding any other As described above, the Department Section 600.9 State Authorization participated in negotiated rulemaking provision of law, no person is required when developing the proposed to comply with, or is subject to penalty State Authorization of Foreign regulations, and considered a number of for failure to comply with, a collection Additional Locations and Branch options for some of the provisions. No of information if the collection Campuses of Domestic Institutions alternatives were aimed specifically at instrument does not display a currently Requirements: Proposed small entities. valid OMB control number. In the final regulations, we will § 600.9(d)(1)(v) would specify that, for Paperwork Reduction Act of 1995 display the control numbers assigned by any foreign additional location at which As part of its continuing effort to OMB to any information collection 50 percent or more of an educational reduce paperwork and respondent requirements proposed in this NPRM program is offered, or will be offered, burden, the Department provides the and adopted in the final regulations. and any foreign branch campus, an general public and Federal agencies institution would be required to report with an opportunity to comment on Background the establishment or operation of the proposed and continuing collections of The following data will be used foreign additional location or branch information in accordance with the throughout this section: For the year campus to the State in which the main Paperwork Reduction Act of 1995 (PRA) 2014, there were 2,301 institutions that campus of the institution is located at (44 U.S.C. 3506(c)(2)(A)). This helps reported to IPEDS that they had least annually, or more frequently if ensure that: The public understands the enrollment of 2,834,045 students required by the State. Department’s collection instructions, attending a program through distance Burden Calculation: There will be respondents can provide the requested education as follows: burden on each domestic institution data in the desired format, reporting 1,172 public institutions reported reporting the establishment or burden (time and financial resources) is 1,382,900 students attending a program continued operation of a foreign minimized, collection instruments are through distance education; additional location or branch campus to clearly understood, and the Department 761 private, not-for-profit institutions the State in which the main campus of can properly assess the impact of reported 608,038 students attending a the domestic institution is located. We collection requirements on respondents. program through distance education; estimate that each institution will Sections 600.9 and 668.50 contain 368 private, for-profit institutions require 2 hours annually to draft and information collection requirements. reported 843,107 students attending a submit the required notice. The total Under the PRA, the Department has program through distance education. estimated burden would be 160 hours
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under OMB Control Number 1845– complaints, as set out in the State public disclosure requirements would NEW1. We estimate that 35 public authorization reciprocity agreement. take institutions an average of 15 hours institutions will require a total of 70 Under proposed § 668.50(b)(3), an to research, develop, and post on a Web hours to draft and submit the required institution would be required to site. We estimate that 1,172 public State notice (35 institutions × 2 hours). disclose the process for submitting institutions would require 17,580 hours We estimate that 42 private, not-for- complaints to the appropriate State to research, develop, and post on a Web profit institutions will require a total of agency in the State in which enrolled site the required public disclosures 84 hours to draft and submit the students reside, including contact (1,172 institutions × 15 hours). We required State notice (42 institutions × information for the appropriate estimate that 761 private, not-for-profit 2 hours). We estimate that 3 private, for- individuals at those State agencies that institutions would require 11,415 hours profit institutions will require a total of handle consumer complaints. to research, develop, and post on a Web 6 hours to draft and submit the required Under proposed § 668.50(b)(4), an site the required public disclosures (761 State notice (3 institutions × 2 hours). institution would be required to institutions × 15 hours). We estimate The total estimated burden for 34 CFR disclose any adverse actions a State that 368 private, for-profit institutions 600.9 would be 160 hours under OMB entity has initiated related to the would require 5,520 hours to research, Control Number 1845–NEW1. institution’s distance education develop, and post on a Web site the programs or correspondence courses for required public disclosures (368 Section 668.50 Institutional a five calendar year period prior to the institutions × 15 hours). Disclosures for Distance or year in which the institution makes the The total estimated burden for Correspondence Programs disclosure. proposed § 668.50(b) would be 34,515 Under proposed § 668.50(b)(5) an Requirements: The Department hours under OMB Control Number institution would be required to proposes to add new § 668.50(b) and (c), 1845–NEW2. disclose any adverse actions an which would require disclosures to accrediting agency has initiated related Individualized Disclosures enrolled and prospective students in the to the institution’s distance education Under proposed § 668.50(c)(1)(i), an institution’s distance education programs or correspondence courses for institution would be required to provide programs or correspondence courses. a five calendar year period prior to the an individualized disclosure to Seven proposed disclosures would be year in which the institution makes the prospective students when it determines made publicly available, and three disclosure. a program offered solely through disclosures would require direct Under proposed § 668.50(b)(6), an distance education or correspondence communication with enrolled and institution would be required to courses does not meet licensure or prospective students when certain disclose any refund policies for the certification prerequisites in the State of conditions have been met. These return of unearned tuition and fees with the student’s residence. proposed disclosures would not change which the institution is required to Under proposed § 668.50(c)(1)(ii), an any other required disclosures of comply by any State in which the institution would be required to provide subpart D of Student Assistance General institution enrolls students in a distance an individualized disclosure to both Provisions. education program or correspondence enrolled and prospective students Public Disclosures courses. This disclosure would require within 30 days of when it becomes publication of the State-specific aware of any adverse action initiated by Under proposed § 668.50(b)(1), an requirements on the refund policies as a State or an accrediting agency related institution would be required to well as any institutional refund policies to the institution’s programs offered disclose whether or not the program that would be applicable to students through distance education or offered through distance education or enrolled in programs offered through correspondence courses; or within correspondence courses is authorized by distance education or correspondence seven days of the institution’s each State in which enrolled students courses with which the institution must determination that a program ceases to reside. If an institution is authorized comply. meet licensure or certification through a State authorization reciprocity Under proposed § 668.50(b)(7), an prerequisites of a State. agreement, the institution would be institution would be required to For prospective students who receive required to disclose its authorization disclose the applicable educational any individualized disclosure and status under such an agreement. prerequisites for professional licensure subsequently enroll, proposed Under proposed § 668.50(b)(2)(i), an or certification which the program § 668.50(c)(2) would require an institution authorized by a State agency offered through distance education or institution to obtain an acknowledgment would be required to disclose the correspondence course prepares the from the student that the process for submitting complaints to the student to enter for each State in which communication was received prior to appropriate State agency in the State in students reside, and for which the the student’s enrollment in the program. which the main campus of the institution has made a determination Burden Calculation: We anticipate institution is located, including contact regarding such prerequisites. For any that institutions will provide this information for the appropriate State for which an institution has not information electronically to enrolled individuals at those State agencies that made a determination with respect to and prospective students regarding their handle consumer complaints. the licensure or certification distance education or correspondence Under proposed § 668.50(b)(2)(ii), an requirement, an institution would be courses. We estimate that institutions institution authorized by a State required to disclose a statement to that would take an average of 2 hours to authorization reciprocity agreement effect. develop the language for the would be required to disclose the Burden Calculation: We anticipate individualized disclosures. We estimate complaint process established by the that institutions will provide this that it would take an additional average reciprocity agreement, if the agreement information electronically to enrolled of 4 hours for the institution to established such a process. An and prospective students regarding their individually disclose this information to institution would be required to provide distance education or correspondence enrolled and prospective students for a a contact responsible for handling such courses. We estimate that the seven total of 6 hours of burden to the
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institutions. We estimate that five estimate that 18 private, for-profit sections of the proposed regulations percent of institutions would meet the institutions would require 108 hours to involving information collections, the criteria to require these individual develop the language for the disclosures information being collected, and the disclosures. We estimate that 59 public and to individually disclose this collections that the Department will institutions would require 354 hours to information to enrolled and prospective submit to OMB for approval and public × develop the language for the disclosures students (18 institutions 6 hours). comment under the PRA, and the and to individually disclose this The total estimated burden for estimated costs associated with the information to enrolled and prospective proposed § 668.50(c) would be 690 information collections. The monetized hours under OMB Control Number students (59 institutions × 6 hours). We net costs of the increased burden on 1845–NEW2. estimate that 38 private, not-for-profit The combined total estimated burden institutions, lenders, guaranty agencies, institutions would require 228 hours to for proposed § 668.50 would be 35,205 and borrowers, using BLS wage data, develop the language for the disclosures hours under OMB Control Number available at www.bls.gov/ncs/ect/sp/ and to individually disclose this 1845–NEW2. ecsuphst.pdf, is $1,292,591 as shown in information to enrolled and prospective Consistent with the discussion above, the chart below. This cost was based on students (38 institutions × 6 hours). We the following chart describes the an hourly rate of $36.55 for institutions.
COLLECTION OF INFORMATION
OMB Control number and Regulatory section Information collection estimated burden Estimated [change in burden] costs
§ 600.9 ...... The proposed regulations would specify that, for any foreign addi- 1845–NEW1—This would be a $5,848 tional location at which 50 percent or more of an educational new collection. We estimate program is offered, or will be offered, and any foreign branch that the burden would increase campus, an institution would be required to report the establish- by 160 hours. ment or operation of the foreign additional location or branch campus to the State in which the main campus of the institution is located at least annually, or more frequently if required by the State. § 668.50(b) ...... The proposed regulations would require institutions to produce dis- 1845–NEW2—This would be a 1,261,523 closures to enrolled and prospective students in the institution’s new collection. We estimate distance education programs or correspondence courses. Seven that the burden would increase proposed disclosures must be made publicly available. These by 34,515 hours. disclosures include: (1) Whether the distance education programs are authorized by the State where the student resides; (2) The process for submitting a complaint to the appropriate State agency in the State where the main campus of the institution is located; (3) The process for submitting a complaint if the institution is cov- ered by a State authorization reciprocity agreement and it has such a process; (4) The disclosure of any adverse action initiated by the institu- tion’s State entity related to the distance education program; (5) The disclosure of any adverse action initiated by the institu- tion’s accrediting agency related to the distance education pro- gram; (6) The disclosure of any refund policy required by any State in which the institution enrolls students; (7) The disclosure of any determination made regarding whether or not the distance education program meets applicable pre- requisites for professional licensure or certification in the State where the student resides, if such a determination has been made. If such a determination has not been made, a statement to that effect would be required. § 668.50(c) ...... The proposed regulations would require institutions to produce dis- 1845–NEW2—This would be a 25,220 closures to enrolled and prospective students in the institution’s new collection. We estimate distance education programs or correspondence courses. Three that the burden would increase proposed disclosures must be made available to individuals. by 690 hours These disclosures include: (1) Notice of an adverse action by the State or accrediting agency related to the distance education program. This disclosure must be provided within 30 days of when the institution becomes aware of the action; (2) Notice of the institution’s determination that the distance edu- cation program no longer meets the prerequisites for licensure or certification of a State. This disclosure must be provided with- in 7 days of when the institution makes such a determination.
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The total burden hours and change in Control number affected by the burden hours associated with each OMB proposed regulations follows:
Proposed Control number Total proposed change in burden hours burden hours
1845–NEW1 ...... 160 160 1845–NEW2 ...... 35,205 35,205
Total ...... 35,365 35,365
We have prepared an Information Comments’’ on the top of your Format (PDF). To use PDF you must Collection Request (ICR) for these comments. have Adobe Acrobat Reader, which is information collection requirements. If available free at the site. Intergovernmental Review you want to review and comment on the You may also access documents of the ICR, please follow the instructions in These programs are not subject to Department published in the Federal the ADDRESSES section of this notice. Executive Order 12372 and the Register by using the article search regulations in 34 CFR part 79. Note: The Office of Information and feature at: www.federalregister.gov. Regulatory Affairs in the Office of Assessment of Educational Impact Specifically, through the advanced search feature at this site, you can limit Management and Budget (OMB), and the In accordance with section 411 of the Department of Education review all your search to documents published by General Education Provisions Act, 20 comments posted at www.regulations.gov. the Department. (Catalog of Federal U.S.C. 1221e–4, the Secretary Domestic Assistance: 84.007 FSEOG; In preparing your comments, you may particularly requests comments on 84.033 Federal Work Study Program; want to review the ICR, including the whether these proposed regulations 84.037 Federal Perkins Loan Program; supporting materials, in would require transmission of 84.063 Federal Pell Grant Program; www.regulations.gov by using the information that any other agency or 84.069 LEAP; 84.268 William D. Ford Docket ID number specified in this authority of the United States gathers or notice. These proposed collections are makes available. Federal Direct Loan Program; 84.379 identified as proposed collections 1845– TEACH Grant Program) Federalism NEW1 and 1845–NEW2. List of Subjects We consider your comments on these Executive Order 13132 requires us to proposed collections of information in— ensure meaningful and timely input by 34 CFR Part 600 • Deciding whether the proposed State and local elected officials in the Colleges and universities, Foreign collections are necessary for the proper development of regulatory policies that relations, Grant programs-education, performance of our functions, including have federalism implications. Loan programs-education, Reporting whether the information will have ‘‘Federalism implications’’ means and recordkeeping requirements, practical use; substantial direct effects on the States, Student aid, Vocational education. • Evaluating the accuracy of our on the relationship between the estimate of the burden of the proposed National Government and the States, or 34 CFR Part 668 collections, including the validity of our on the distribution of power and Administrative practice and methodology and assumptions; responsibilities among the various procedure, Colleges and universities, • Enhancing the quality, usefulness, levels of government. The proposed Consumer protection, Grant programs- and clarity of the information we regulations in § 600.9(c) and (d) may education, Loan programs-education, collect; and have federalism implications. We Reporting and recordkeeping • Minimizing the burden on those encourage State and local elected requirements, Selective Service System, who must respond. This includes officials to review and provide Student aid, Vocational education. exploring the use of appropriate comments on these proposed Dated: July 13, 2016. automated, electronic, mechanical, or regulations. other technological collection Accessible Format: Individuals with John B. King, Jr., techniques. disabilities can obtain this document in Secretary of Education. Between 30 and 60 days after an accessible format (e.g., braille, large For the reasons discussed in the publication of this document in the print, audiotape, or compact disc) on preamble, the Secretary proposes to Federal Register, OMB is required to request to the person [one of the amend parts 600 and 668 as follows: make a decision concerning the persons] listed under FOR FURTHER collections of information contained in INFORMATION CONTACT. PART 600—INSTITUTIONAL these proposed regulations. Therefore, Electronic Access to This Document: ELIGIBILITY UNDER THE HIGHER to ensure that OMB gives your The official version of this document is EDUCATION ACT OF 1965, AS comments full consideration, it is the document published in the Federal AMENDED important that OMB receives your Register. Free Internet access to the ■ comments on this ICR by August 24, official edition of the Federal Register 1. The authority citation for part 600 2016. This does not affect the deadline and the Code of Federal Regulations is continues to read as follows: for your comments to us on the available via the Federal Digital System Authority: 20 U.S.C. 1001, 1002, 1003, proposed regulations. at: www.gpo.gov/fdsys. At this site you 1088, 1091, 1094, 1099b, and 1099c, unless If your comments relate to the ICRs can view this document, as well as all otherwise noted. for these proposed regulations, please other documents of this Department ■ 2. Section 600.2 is amended by specify the Docket ID number and published in the Federal Register, in adding, in alphabetical order, a indicate ‘‘Information Collection text or Adobe Portable Document definition of ‘‘State authorization
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reciprocity agreement’’ to read as from any of those enrolled students that foreign country as the foreign follows: concerning the institution— country may establish. (i) In each State in which the (3) In accordance with the § 600.2 Definitions. institution’s enrolled students reside; or requirements of 34 CFR 668.41, the * * * * * (ii) Through a State authorization institution must disclose to enrolled and State authorization reciprocity reciprocity agreement which designates prospective students at foreign agreement. An agreement between two for this purpose either the State in additional locations the information or more States that authorizes an which the institution’s enrolled regarding the student complaint process institution located and legally students reside or the State in which the described in 34 CFR 668.43(b). authorized in a State covered by the institution’s main campus is located. (4) If the State in which the main agreement to provide postsecondary (d) An additional location or branch campus of the institution is located education through distance education or campus of an institution, described limits the authorization of the correspondence courses to students in under paragraph (a)(1) of this section, institution to exclude the foreign other States covered by the agreement that is located in a foreign country, i.e., additional location or branch campus, and does not prohibit a participating not in a State, must comply with the foreign additional location or branch State from enforcing its own consumer §§ 600.8, 600.10, 600.20, and 600.32, campus is not considered to be legally protection laws. and the following requirements: authorized by the State. * * * * * (1) For any additional location at * * * * * which 50 percent or more of an ■ 3. Section 600.9 is amended by educational program (as defined in revising paragraph (c) and adding PART 668—STUDENT ASSISTANCE § 600.2) is offered, or will be offered, or paragraph (d) to read as follows: GENERAL PROVISIONS at a branch campus— ■ § 600.9 State authorization. (i) The additional location or branch 4. The authority citation for part 668 continues to read as follows: * * * * * campus must be legally authorized by (c)(1)(i) If an institution described an appropriate government authority to Authority: 20 U.S.C. 1001–1003, 1070a, 1070g, 1085, 1087b, 1087d, 1087e, 1088, under paragraph (a)(1) of this section operate in the country where the additional location or branch campus is 1091, 1092, 1094, 1099c, 1099c–1, 1221e–3, offers postsecondary education through and 3474, unless otherwise noted. distance education or correspondence physically located, unless the additional courses to students in a State in which location or branch campus is physically § 668.2 [Amended] the institution is not physically located located on a U.S. military base and the ■ 5. Section 668.2 is amended in or in which the institution is otherwise institution can demonstrate that it is paragraph (a) by adding to the list of subject to that State’s jurisdiction as exempt from obtaining such definitions, in alphabetical order, determined by that State, except as authorization from the foreign country; ‘‘Distance education’’. (ii) The institution must provide to provided in paragraph (c)(1)(ii) of this ■ 6. Section 668.50 is added to subpart the Secretary, upon request, section, the institution must meet any D to read as follows: documentation of such legal State requirements for it to be legally authorization to operate in the foreign § 668.50 Institutional disclosures for offering postsecondary distance country, demonstrating that the distance or correspondence programs. education or correspondence courses in government authority is aware that the (a) General. In addition to the other that State. The institution must, upon additional location or branch campus institutional disclosure requirements request, document to the Secretary the provides postsecondary education and established in this subpart, an State’s approval. that the government authority does not institution described under 34 CFR (ii) If an institution described under object to those activities; 600.9(a)(1) that offers a program solely paragraph (a)(1) of this section offers (iii) The additional location or branch through distance education or postsecondary education through campus must be approved by the correspondence courses must provide distance education or correspondence institution’s recognized accrediting the information described in paragraphs courses in a State that participates in a agency in accordance with § 602.24(a) (b) and (c) of this section to enrolled and State authorization reciprocity and § 602.22(a)(2)(viii), as applicable; prospective students in that program. agreement, and the institution is (iv) The additional location or branch (b) Public disclosures. An institution covered by such agreement, the campus must meet any additional described under 34 CFR 600.9(a)(1) that institution is considered to meet State requirements for legal authorization in offers an educational program that is requirements for it to be legally offering that foreign country as the foreign provided, or can be completed solely postsecondary distance education or country may establish; through distance education or correspondence courses in that State, (v) The institution must report to the correspondence courses, excluding subject to any limitations in that State in which the main campus of the internships and practicums, must make agreement. The institution must, upon institution is located at least annually, available the following information to request, document its coverage under or more frequently if required by the enrolled and prospective students of such an agreement to the Secretary. State, the establishment or operation of such program, the form and content of (2) If an institution described under each foreign additional location or which the Secretary may determine: paragraph (a)(1) of this section offers branch campus; and (1)(i) Whether the institution is postsecondary education through (vi) The institution must comply with authorized to provide the program by distance education or correspondence any limitations the State places on the each State in which enrolled students courses to students residing in a State in establishment or operation of the foreign reside; or which the institution is not physically additional location or branch campus. (ii) Whether the institution is located, for the institution to be (2) An additional location at which authorized through a State authorization considered legally authorized in that less than 50 percent of an educational reciprocity agreement, as defined in 34 State, the institution must document program (as defined in § 600.2) is CFR 600.2; that there is a State process for review offered or will be offered must meet the (2)(i) If the institution is required to and appropriate action on complaints requirements for legal authorization in provide a disclosure under paragraph
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(b)(1)(i) of this section, a description of which such actions were initiated, through distance education or the process for submitting complaints, related to postsecondary education correspondence courses must disclose including contact information for the programs offered solely through directly and individually— receipt of consumer complaints at the distance education or correspondence (i) To each prospective student, any appropriate State authorities in the State courses at the institution for the five determination by the institution that the in which the institution’s main campus calendar years prior to the year in which program does not meet licensure or is located, as required under § 668.43(b); the disclosure is made; certification prerequisites in the State of (6) Refund policies with which the and the student’s residence, prior to the (ii) If the institution is required to institution is required to comply by any student’s enrollment; and provide a disclosure under paragraph State in which enrolled students reside (b)(1)(ii) of this section, and that for the return of unearned tuition and (ii) To each enrolled and prospective agreement establishes a complaint fees; and student— process as described in 34 CFR (7)(i) The applicable educational (A) Any adverse action initiated by a 600.9(c)(2)(ii), a description of the prerequisites for professional licensure State or an accrediting agency related to process for submitting complaints that or certification for the occupation for postsecondary education programs was established in the reciprocity which the program prepares students to offered by the institution solely through agreement, including contact enter in— distance education or correspondence information for receipt of consumer (A) Each State in which the program’s study within 30 days of the institution’s complaints at the appropriate State enrolled students reside; and becoming aware of such action; or authorities; (B) Any other State for which the (3) A description of the process for institution has made a determination (B) Any determination by the submitting consumer complaints in regarding such prerequisites; institution that the program ceases to each State in which the program’s (ii) If the institution makes a meet licensure or certification enrolled students reside, including determination with respect to prerequisites of a State within 7 days of contact information for receipt of certification or licensure prerequisites that determination. consumer complaints at the appropriate in a State, whether the program does or (2) For a prospective student who State authorities; does not satisfy the applicable received a disclosure under paragraph (4) Any adverse actions a State entity educational prerequisites for (c)(1)(i) of this section and who has initiated, and the years in which professional licensure or certification in subsequently enrolls in the program, the such actions were initiated, related to that State; and institution must receive postsecondary education programs (iii) For any State as to which the acknowledgment from that student that offered solely through distance institution has not made a the student received the disclosure and education or correspondence courses at determination with respect to the be able to demonstrate that it received the institution for the five calendar licensure or certification prerequisites, a the student’s acknowledgment. years prior to the year in which the statement to that effect. disclosure is made; (c) Individualized disclosures. (1) An (Authority: 20 U.S.C. 1092) (5) Any adverse actions an accrediting institution described under 34 CFR [FR Doc. 2016–17068 Filed 7–22–16; 8:45 am] agency has initiated, and the years in 600.9(a)(1) that offers a program solely BILLING CODE 4000–01–P
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Part V
Department of Energy
10 CFR Parts 429 and 430 Energy Conservation Program: Test Procedures for Ceiling Fans; Final Rule
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DEPARTMENT OF ENERGY specifying stable measurement criteria Street, 4th Floor, New York, NY 10036, and a method for determining stability. 212–642–4900, or www.ansi.org. You 10 CFR Parts 429 and 430 DATES: The effective date of this rule is can obtain copies of IEC 62301:2011 August 24, 2016. The final rule changes from the International Electrotechnical [Docket No. EERE–2013–BT–TP–0050] will be mandatory for representations Commission, 3, rue de Varembe´, P.O. made with respect to the energy use or Box 131, CH—1211 Geneva 20— RIN 1904–AD10 efficiency of ceiling fans starting Switzerland, or https://webstore.iec.ch. January 23, 2017. The incorporation by For a further discussion of these Energy Conservation Program: Test reference of certain publications listed standards, see section IV.M. Procedures for Ceiling Fans in this rule was approved by the Table of Contents AGENCY: Office of Energy Efficiency and Director of the Federal Register on August 24, 2016. I. Authority and Background Renewable Energy, Department of II. Synopsis of the Final Rule Energy. ADDRESSES: The docket, which includes III. Discussion ACTION: Final rule. Federal Register notices, public meeting A. Scope of Applicability attendee lists and transcripts, 1. Clarification of the Statutory Definition SUMMARY: The U.S. Department of comments, and other supporting of a Ceiling Fan Energy (DOE) is issuing a final rule to documents/materials, is available for 2. Ceiling Fans Not Subject to the Test amend the test procedures for ceiling review at regulations.gov. All Procedure fans. DOE is establishing an integrated 3. Definitions of Low-Speed Small- documents in the docket are listed in Diameter, High-Speed Small-Diameter, efficiency metric for ceiling fans, based the regulations.gov index. However, and Large-Diameter Ceiling Fans on airflow and power consumption at some documents listed in the index, 4. Definitions of Hugger, Standard, Multi- high and low speed for low-speed small- such as those containing information Mount, Highly-Decorative, Belt-Driven, diameter ceiling fans; at high speed for that is exempt from public disclosure, and Very-Small-Diameter Ceiling Fans high-speed small-diameter ceiling fans; may not be publicly available. B. Compliance Date and at up to five speeds for large- A link to the docket Web page can be C. Existing Test Procedure diameter ceiling fans. The integrated found at: http://www.regulations.gov/ D. Integrated Efficiency Metric 1. Low-Speed Small-Diameter Ceiling Fans efficiency metric also accounts for #!docketDetail;D=EERE-2013-BT-TP- 2. High-Speed Small-Diameter Ceiling Fans power consumed in standby mode. DOE 0050. This Web page will contain a link 3. Large-Diameter Ceiling Fans is also adopting new test procedures for to the docket for this document on the E. Modifications to Existing Test Procedure large-diameter ceiling fans, multi-mount regulations.gov site. The regulations.gov 1. Required Testing Speeds for Low-Speed ceiling fans, ceiling fans with multiple Web page will contain simple Small-Diameter and High-Speed Small- fan heads, and ceiling fans where the instructions on how to access all Diameter Ceiling Fans airflow is not directed vertically, and documents, including public comments, 2. Elimination of Test Cylinder From Test clarifying when these methods must be in the docket. Setup and Specification of Effective Area 3. Specification of Method of Measuring conducted. Additionally, DOE is For further information on how to the Distance Between Ceiling Fan Blades adopting the following changes to the review the docket, contact Ms. Lucy and Air Velocity Sensors During Testing current test procedure: Eliminating the deButts at (202) 287–1604 or by email: 4. Specification of Fan Configuration test cylinder from the test setup; [email protected]. During Testing specifying the method of measuring the FOR FURTHER INFORMATION CONTACT: 5. Specification of Test Method for Ceiling distance between the ceiling fan blades Ms. Lucy deButts, U.S. Department of Fans With Heaters and the air velocity sensors during Energy, Office of Energy Efficiency 6. Specification on Mounting Fans to Real Ceiling for Testing testing; specifying the fan configuration and Renewable Energy, Building 7. Revised Allowable Measurement during testing for ceiling fans that can Technologies Office, EE–2J, 1000 Tolerance for Air Velocity Sensors be mounted in more than one Independence Avenue SW., 8. Revised Allowable Mounting Tolerance configuration; specifying the test Washington, DC 20585–0121. for Air Velocity Sensors method for ceiling fans with heaters; Telephone: (202) 287–1604. Email: 9. Specifications To Reduce Testing specifying that a ceiling fan is not [email protected]. Variation subject to the test procedure if the plane Ms. Elizabeth Kohl, U.S. Department of 10. Revised Testing Temperature Requirement of rotation of the ceiling fan’s blades Energy, Office of the General Counsel, 11. Specification of Air Delivery Room cannot be within 45 degrees of GC–33, 1000 Independence Avenue Doors and Air Conditioning Vents horizontal; specifying that centrifugal SW., Washington, DC 20585–0121. 12. Specification of Power Source and ceiling fans are not subject to the test Telephone: (202) 586–7796. Email: Measurement procedure; specifying that all small- [email protected]. 13. Specification of Blade Span diameter ceiling fans must be mounted SUPPLEMENTARY INFORMATION: This final Measurement directly to the real ceiling for testing; rule incorporates by reference into part F. Additional Test Methods revising the allowable measurement 1. Test Method for Large-Diameter Ceiling 430 the following industry standards: Fans tolerance for air velocity sensors; (1) ANSI/AMCA Standard 230–15, 2. Test Method for Multi-Mount Ceiling revising the allowable mounting (‘‘AMCA 230–15’’), ‘‘Laboratory Fans tolerance for air velocity sensors; Methods of Testing Air Circulating Fans 3. Test Method for Ceiling Fans With revising the testing temperature for Rating and Certification,’’ ANSI Multiple Fan Heads requirement; requiring measurement approved October 16, 2015. 4. Test Method for Ceiling Fans Where the axes to be perpendicular to walls; (2) IEC 62301, (‘‘IEC 62301–U’’), Airflow Is Not Directed Vertically specifying the position of air ‘‘Household electrical appliances— 5. Test Method for Power Consumption in conditioning vents and doors during Standby Mode Measurement of standby power,’’ G. Certification and Enforcement testing; specifying operation of room (Edition 2.0, 2011–01). IV. Procedural Issues and Regulatory Review conditioning equipment; specifying the You can obtain copies of ANSI/AMCA A. Review Under Executive Order 12866 power source and how power Standard 230–15 from the American B. Review Under the Regulatory Flexibility measurements are to be made; and National Standards Institute, 25 W. 43rd Act
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1. Description of the Need For, and amending test procedures for covered descriptor, if technically feasible. (42 Objectives of, the Rule products, including ceiling fans. EPCA U.S.C. 6295(gg)(2)(A)) If an integrated 2. Description of Significant Issues Raised provides that any test procedures must test procedure is technically infeasible, by Public Comment be reasonably designed to produce test DOE must prescribe a separate standby- 3. Description of Comments Submitted by the Small Business Administration results that measure energy efficiency, mode and off-mode test procedure for 4. Description of Estimated Number of energy use, or estimated annual the covered product, if technically Small Entities Regulated operating cost of a covered product feasible. Id. This test procedure 5. Description of the Projected Compliance during a representative average use rulemaking addresses standby-mode Requirements of the Final Rule cycle or period of use, and must not be and off-mode power consumption. 6. Description of Steps Taken To Minimize unduly burdensome to conduct. (42 DOE is concurrently conducting an Impacts to Small Businesses U.S.C. 6293(b)(3)) energy conservation standards C. Review Under the Paperwork Reduction In addition, if DOE determines that a rulemaking for ceiling fans.1 On Act of 1995 test procedure amendment is warranted, September 29, 2014, DOE published in D. Review Under the National it must publish proposed test Environmental Policy Act of 1969 the Federal Register a Notice of Public E. Review Under Executive Order 13132 procedures and offer the public an Meeting and Availability of the F. Review Under Executive Order 12988 opportunity to present oral and written Preliminary Technical Support G. Review Under the Unfunded Mandates comments on them. (42 U.S.C. Document for the energy conservation Reform Act of 1995 6293(b)(2)) Finally, in any rulemaking to standards rulemaking for ceiling fans. H. Review Under the Treasury and General amend a test procedure, DOE must 79 FR 58290. DOE held the preliminary Government Appropriations Act, 1999 determine to what extent, if any, the analysis public meeting on November I. Review Under Executive Order 12630 proposed test procedure would alter the J. Review Under Treasury and General 19, 2014. DOE requested feedback in the measured energy efficiency of any preliminary analysis document and Government Appropriations Act, 2001 covered product as determined under K. Review Under Executive Order 13211 received both written comments and L. Review Under Section 32 of the Federal the existing test procedure. (42 U.S.C. comments at the public meeting from Energy Administration Act of 1974 6293(e)) interested parties on many issues M. Description of Materials Incorporated EPCA established energy conservation related to test methods for evaluating by Reference standards (design standards) for ceiling the airflow and electrical consumption N. Congressional Notification fans, as well as requirements for the performance of ceiling fans. Some of the V. Approval of the Office of the Secretary ceiling fan test procedure. (42 U.S.C. comments that DOE received related to 6295(ff) and 6293(b)(16)(A)(1)) I. Authority and Background the test procedure for ceiling fans were Specifically, EPCA requires that test addressed in the test procedure SNOPR Title III of the Energy Policy and procedures for ceiling fans be based on (80 FR 31487 (Jun. 3, 2015)), and the Conservation Act of 1975 (42 U.S.C. the ‘‘ENERGY STAR Testing Facility remaining comments are addressed 6291, et seq.; ‘‘EPCA’’ or, ‘‘the Act’’) sets Guidance Manual: Building a Testing throughout this final rule. The ceiling forth a variety of provisions designed to Facility and Performing the Solid State fan energy conservation standards improve energy efficiency. Part B of title Test Method for ENERGY STAR NOPR was published on January 13, III, which for editorial reasons was Qualified Ceiling Fans, Version 1.1.’’ Id. 2016, and the associated public meeting redesignated as Part A upon The current DOE ceiling fan test was held on February 3, 2016. (81 FR incorporation into the U.S. Code (42 procedure, based on that source, was 1688) DOE received comments on the U.S.C. 6291–6309, as codified), published in a 2006 final rule (71 FR standards NOPR pertaining to various establishes the ‘‘Energy Conservation 71341 (Dec. 8, 2006)), which codified Program for Consumer Products Other the test procedure in DOE’s regulations aspects of the test procedure, Than Automobiles.’’ These consumer in the Code of Federal Regulations particularly regarding definitions of products include ceiling fans, the (CFR) at 10 CFR 430.23(w) and 10 CFR ceiling fan types, and these comments subject of this document. (42 U.S.C. part 430, subpart B, appendix U, are also addressed throughout this final 6291(49), 6293(b)(16)(A)(i) and (B), and ‘‘Uniform Test Method for Measuring rule. 6295(ff)) the Energy Consumption of Ceiling II. Synopsis of the Final Rule Under EPCA, the energy conservation Fans.’’ program consists essentially of four EPCA requires DOE, at least once This final rule amends DOE’s current parts: (1) Testing, (2) labeling, (3) every 7 years, to conduct an evaluation test procedures for ceiling fans Federal energy conservation standards, of the test procedures for all covered contained in 10 CFR part 430, subpart and (4) certification and enforcement products and either amend the test B, appendix U; 10 CFR 429.32; and 10 procedures. The testing requirements procedures (if the Secretary determines CFR 430.23(w). This final rule: (1) consist of test procedures that that amended test procedures would Specifies new test procedures for large- manufacturers of covered products must more accurately or fully comply with diameter ceiling fans, multi-mount use as the basis for (1) certifying to DOE the requirements of 42 U.S.C. ceiling fans, ceiling fans with multiple that their products comply with the 6293(b)(3)) or publish a determination fan heads, and ceiling fans where the applicable energy conservation in the Federal Register not to amend airflow is not directed vertically, and (2) standards adopted under EPCA, and (2) them. (42 U.S.C. 6293(b)(1)(A)) The final adopts the following changes to the making representations about the rule resulting from this rulemaking will current test procedure: (a) Low-speed efficiency of those products. Similarly, satisfy this requirement. small-diameter ceiling fans must be DOE must use these test procedures to In addition, for covered products with tested at high and low speeds; (b) high- determine whether the products comply test procedures that do not fully account speed small-diameter ceiling fans must with any relevant standards for standby-mode and off-mode energy be tested at high speed only; (c) large- promulgated under EPCA. (42 U.S.C. consumption, EPCA directs DOE to diameter ceiling fans must be tested at 6295(s)) amend its test procedures to do so with 1 The ceiling fan energy conservation standard Under 42 U.S.C. 6293, EPCA sets forth such energy consumption integrated rulemaking information is available at the criteria and procedures that DOE into the overall energy efficiency, regulations.gov under docket number EERE–2012– must follow when prescribing or energy consumption, or other energy BT–STD–0045.
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up to five speeds; (d) a test cylinder is III. Discussion ceiling fans pursuant to the test not to be used during testing; (e) fans procedure if the plane of rotation of the A. Scope of Applicability that can be mounted at more than one ceiling fan’s blades cannot be within 45 height are to be mounted in the EPCA defines a ‘‘ceiling fan’’ as ‘‘a degrees of horizontal, as the test configuration that minimizes the non-portable device that is suspended procedure is not designed to provide distance between the fan blades and the from a ceiling for circulating air via the accurate performance data for such fans. ceiling; (f) any heater installed with a rotation of fan blades.’’ (42 U.S.C. 80 FR 31487. In response to this ceiling fan is to be switched off during 6291(49)) The test procedures described proposal, Big Ass Solutions (BAS) testing; (g) small-diameter ceiling fans in this final rule apply to any product suggested DOE base this exemption on must be mounted directly to the real meeting this definition, including the direction of discharge for the ceiling; (h) the allowable measurement applications where large airflow volume majority of the airflow rather than on tolerance for air velocity sensors is may be needed and highly decorative the plane of rotation of the ceiling fan’s 5 ±5%; (i) the allowable mounting fans (as discussed in section III.A.4.), blades. (BAS, No. 13 at pp. 1–2) BAS distance tolerance for air velocity except for belt-driven ceiling fans, also provided two examples of ceiling sensors is ±1/16’’; (j) the air delivery centrifugal ceiling fans, oscillating fans for which the blades have a ceiling fans, or ceiling fans whose room must be at 70 F ±5 F during horizontal plane of rotation, but for blades’ plane of rotation cannot be testing; (k) air delivery room doors and which the proposed test procedure within 45 degrees of horizontal (see air conditioning vents must be closed would not adequately evaluate the Section III.A.2). All fans that meet the ceiling fan’s performance due to the and forced-air conditioning equipment statutory definition of a ceiling fan are direction of the majority of the airflow turned off during testing; (l) small- ceiling fans and do not fall within the not being vertically downward. (Id.) diameter ceiling fans capable of being scope of the rulemaking under DOE considers the two example operated on both single- and multi- consideration for commercial and ceiling fans BAS provided to be phase power must be tested with single- industrial fans and blowers.4 centrifugal ceiling fans, which DOE has phase power, and large-diameter ceiling separately determined will not be 1. Clarification of the Statutory fans capable of being operated on both subject to this final rule. Therefore, DOE Definition of a Ceiling Fan single- and multi-phase power must be maintains that ceiling fans whose tested with multi-phase power; (m) any DOE previously interpreted the blades’ plane of rotation cannot be fan rated for operation either at 120 V definition of a ceiling fan such that it within 45 degrees of horizontal will not or at 240 V must be tested at that excluded certain types of ceiling fans be subject to this final rule. voltage, otherwise a fan must be tested commonly referred to as hugger fans. 71 In the concurrent ceiling fans energy at its lowest rated voltage or the mean FR 71343 (Dec. 8, 2006). However, in conservation standards NOPR, DOE has of its lowest rated voltage range; (n) the test procedure final rule for ceiling proposed to define belt-driven ceiling measurement axes must be fan light kits (CFLKs), DOE fans as ceiling fans with a series of one perpendicular to test room walls; and reinterpreted the definition of ceiling or more fan heads, each driven by a belt (o) measurement stabilization fan to include hugger fans and clarified connected to one or more motors. requirements must be met for a valid that the definition also includes fans However, in the energy conservation test (i.e., average air velocity for all axes capable of producing large volumes of standards NOPR, DOE does not propose for each sensor must be within 5% and airflow. 80 FR 80209 (Dec. 24, 2015) standards for belt-driven ceiling fans, average electrical power measurement 2. Ceiling Fans Not Subject to the Test based on the limited number of basic must be within 1% for successive Procedure models and lack of available data. measurements).2 DOE also determines Therefore, although DOE is investigating that belt-driven ceiling fans, centrifugal In the October 2014 test procedure appropriate test procedures for belt- ceiling fans, oscillating ceiling fans, and NOPR, DOE proposed that centrifugal driven ceiling fans, such fans will not be ceiling fans for which the plane of ceiling fans (commonly referred to as subject to the test procedure adopted rotation of the fan blades cannot be ‘‘bladeless’’ ceiling fans) would not be here. within 45 degrees of horizontal are not required to test such fans according to DOE has observed that there are subject to this final rule. the ceiling fan test procedure, which ceiling fans capable of oscillating, either would not accurately measure the through an oscillation of the axis of Additionally, to support the ongoing energy efficiency of such fans. ALA energy conservation standards rotation of individual fan heads or a supported this proposal, and DOE rotation in position amongst multiple rulemaking for ceiling fans, this final received no comments expressing fan heads. Such fans can be tested rule establishes test procedures for an disagreement. (ALA, No. 8 at p. 1) DOE according to the appropriate proposed integrated efficiency metric measured in is defining a centrifugal ceiling fan as a test procedures for ceiling fans with tilt cubic feet per minute per watt (CFM/W) ceiling fan for which the primary and/or multi-headed fans if the axis of that is applicable to all ceiling fans for airflow direction is in the same plane as rotation of the fan blades can remain in which DOE has proposed energy the rotation of the fan blades. In this a fixed position relative to the ceiling conservation standards.3 In this final final rule, DOE is not requiring (e.g., by switching off the oscillating rule, DOE also addresses standby mode manufacturers of centrifugal ceiling fans feature). However, DOE recognizes that and off-mode power consumption for to test such fans according to the test not all ceiling fans capable of oscillating ceiling fans. (42 U.S.C. 6295(gg)(2)(A) procedure. can meet this requirement. In this final and (3)) In the ceiling fans test procedure supplemental notice of proposed 5 A notation in this form provides a reference for 2 This provision allows for in-axis variation rulemaking (SNOPR) published on June information that is in the docket of DOE’s amongst sensors while making sure the 3, 2015, DOE proposed that rulemaking to develop test procedures for ceiling measurement as a whole is stable. fans (Docket No. EERE–2013–BT–TP–0050), which 3 The docket for the concurrent ceiling fans manufacturers are not required to test is maintained at www.regulations.gov. This notation energy conservation standards rulemaking is indicates that the statement preceding the reference located here: http://www.regulations.gov/ 4 https://www.regulations.gov/ is document number 13 in the docket and appears #!docketDetail;D=EERE-2012-BT-STD-0045. #!docketDetail;D=EERE-2013-BT-STD-0006. at pages 1–2 of that document.
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rule, DOE is defining an ‘‘oscillating procedures for low-volume ceiling fans, diameter ceiling fan’’ is a ceiling fan ceiling fan’’ as ‘‘a ceiling fan containing high-volume ceiling fans with blade that is greater than seven feet in one or more fan heads for which the spans less than or equal to seven feet, diameter; (2) A ‘‘small-diameter ceiling axis of rotation of the fan blades cannot and high-volume ceiling fans with blade fan’’ is a ceiling fan that is less than or remain in a fixed position relative to the spans greater than seven feet. equal to seven feet in diameter; (3) A ceiling. Such fans have no inherent Specifically, DOE proposed to test all ‘‘low-speed small-diameter ceiling fan’’ means by which to disable the ceiling fans with blade spans less than is a small diameter ceiling fan that oscillating function separate from the or equal to seven feet (i.e., both low- meets both requirements in Table 1; and fan blade rotation.’’ Although DOE is volume ceiling fans and high-volume (4) A ‘‘high-speed small-diameter investigating appropriate test ceiling fans with blade spans less than ceiling fan’’ is a small diameter ceiling procedures for oscillating ceiling fans, or equal to seven feet) using a test fan that fails to meet at least one of the fans with an oscillating function that procedure based on version 1.1 of the requirements in Table 1. Table 1 cannot remain in a fixed position ENERGY STAR test method, while all indicates maximum speed tip for low- relative to the ceiling will not be subject high-volume ceiling fans with blade speed small-diameter ceiling fans, to the test procedures adopted here. For spans greater than seven feet would be depending on blade thickness. The the purpose of this test procedure, tested using a modified version of the values in Table 1 are based on the multi-head ceiling fans for which the AMCA 230–12 test procedure. DOE Underwriters Laboratory (UL) ceiling fan will not oscillate if fan blades are further proposed that high-volume fan safety standard (UL Standard 507– only installed on one fan head do not ceiling fans with blade spans less than 1999, ‘‘UL Standard for Safety for meet the definition of ‘‘oscillating fan’’ or equal to seven feet would be tested Electric Fans’’) which designates and are subject to the test procedure at only high speed, whereas other maximum fan tip speeds (for a given established by this final rule. For this ceiling fans with blade spans less than thicknesses at the edge of the blades) rulemaking, because the airflow or equal to seven feet (i.e., low-volume that are safe for use in applications measurement for multi-head fans is to ceiling fans) would be tested at both where the distance between the fan be taken with the fan blades installed on high and low speeds. DOE proposed this blades and the floor is 10 feet or less. only one fan head, such ceiling fans are change to harmonize the DOE test Given the definitions and the not considered oscillating ceiling fans, procedure with accepted industry requirements set forth in Table 1, DOE and are therefore subject to the test testing practices, and DOE received no notes that any small-diameter ceiling procedures adopted here. stakeholder feedback in disagreement fan with blade edge thickness less than with this approach. 3.2 mm is necessarily a high-speed 3. Definitions of Low-Speed Small- In this final rule, DOE is employing small-diameter (HSSD) ceiling fan. DOE Diameter, High-Speed Small-Diameter, different terminology to delineate fans also notes that, in response to the and Large-Diameter Ceiling Fans that were previously known as low- ceiling fan energy conservation In the October 2014 test procedure volume, high-volume small-diameter, standards NOPR, ALA provided minor, NOPR, DOE proposed definitions for and high-volume. To maintain clarifying edits to the definitions of low-volume and high-volume ceiling consistency with the definitions several fan types, including high-speed fans based on airflow volume, blade proposed in the concurrent ceiling fans small diameter ceiling fans, standard span, blade edge thickness, and the energy conservation standards ceiling fans and hugger ceiling fans. maximum tip speed of the fan blades. rulemaking, DOE is defining the (ALA, No. 137 6 at pp. 4–5) These edits Furthermore, in the test procedure following categories of ceiling fans for have been incorporated into the SNOPR, DOE proposed different test use in this final rule: (1) A ‘‘large- definitions in this final rule.
TABLE 1—UL 507 BLADE THICKNESS AND MAXIMUM TIP SPEED LIMITS
Thickness (t) of edges of blades Maximum speed at tip of blades Airflow direction * (mm) (Inch) (m/s) (feet per minute)
Downward-only ...... 4.8 > t ≥ 3.2 3/16 > t ≥ 1/8 16.3 3200 Downward-only ...... t ≥ 4.8 t ≥ 3/16 20.3 4000 Reversible ...... 4.8 > t ≥ 3.2 3/16 > t ≥ 1/8 12.2 2400 Reversible ...... t ≥ 4.8 t ≥ 3/16 16.3 3200 * The ‘‘downward-only’’ and ‘‘reversible’’ airflow directions are mutually exclusive; therefore, a ceiling fan that can only produce airflow in the downward direction need only meet the ‘‘downward-only’’ blade edge thickness and tip speed requirements and a ceiling fan that can produce airflow in the downward and upward directions need only meet the ‘‘reversible’’ requirements.
4. Definitions of Hugger, Standard, Furthermore, DOE proposed to define 2014 test procedure NOPR, but DOE did Multi-Mount, Highly-Decorative, Belt- standard and multi-mount ceiling fans receive comments from Emerson and Driven, and Very-Small-Diameter as ‘‘a ceiling fan where the lowest point Westinghouse Lighting asking for the Ceiling Fans on the fan blades is more than ten inclusion of a blade warpage tolerance. inches from the ceiling’’ and ‘‘a ceiling (Emerson, Public Meeting Transcript, In the October 2014 test procedure fan that can be mounted in both the No. 83 at pp. 86–87; Westinghouse NOPR, DOE proposed to define a hugger standard and hugger ceiling fan Lighting, Public Meeting Transcript, No. ceiling fan as ‘‘a ceiling fan where the configurations,’’ respectively. 83 at p. 89) DOE understands the lowest point on the fan blades is no Stakeholders did not object to the 10- concern put forth by Emerson and more than ten inches from the ceiling.’’ inch threshold specified in the October Westinghouse Lighting, but DOE
6 This document was submitted to the docket of standards for ceiling fans (Docket No. EERE–2012– DOE’s rulemaking to develop energy conservation BT–STD–0045).
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concludes that a specific distance needs more fan heads, each driven by a belt 6295(ff)(6)(B)(ii)) Furthermore, BAS did to be selected to provide a clear division connected to one or more motors;’’ and not elaborate on the statement that between the product classes for hugger a very-small-diameter ceiling fan as ‘‘a measuring the airflow of highly- and standard ceiling fans. For example, ceiling fan that is not a highly- decorative fans is more difficult than DOE found that standard ceiling fans on decorative ceiling fan or belt-driven measuring RPM and blade span, and no the market have a median distance of 12 ceiling fan; and has one or more fan other stakeholders expressed concern inches from the ceiling to the fan blades; heads, each of which has a blade span with measuring the airflow of highly- therefore, increasing the 10-inch of 18 inches or less.’’ decorative fans. Therefore, DOE is distance by way of a blade warpage ALA did not oppose the inclusion of finalizing the definition of a highly- tolerance could result in the RPM and CFM in the highly-decorative decorative ceiling fan as ‘‘a ceiling fan miscategorization of ceiling fans. ceiling fan definition. (ALA, No. 137 8 at with a maximum rotational speed of 90 DOE also proposed regulatory p. 6) However, BAS commented that the RPM and less than 1,840 CFM airflow definitions for hugger and standard proposed definition for highly- at high speed, as determined by sections ceiling fans and other low-speed small- decorative fans should be based on tip 3 and 4 of appendix U.’’ diameter (LSSD) ceiling fans as part of speed, rather than a combination of DOE notes that efficiency the ceiling fans energy conservation RPM and CFM. According to BAS, using performance standards have not been standards rulemaking. Under the RPM as a basis for the definition proposed for highly-decorative ceiling proposed definitions, a hugger ceiling without incorporating blade span limits fans in the concurrent energy fan is ‘‘a ceiling fan that is not a very smaller-diameter fans more than larger- conservation standards rulemaking (81 small-diameter ceiling fan, highly- diameter fans. BAS added that the use FR 1688 (January 13, 2016)). If DOE decorative ceiling fan or belt-driven of tip speed rather than RPM is does not establish performance ceiling fan; and where the lowest point consistent with the definitions for standards for highly-decorative fans, on fan blades is ≤ 10 inches from the standard and hugger fans, and RPM and manufacturers would continue to ceiling; and has a blade thickness of blade span measurements are generally submit certification reports to DOE for ≥3.2 mm at the edge and a maximum tip easier to make than airflow such fans with respect to the statutory speed ≤ the applicable limit in the table measurements for highly-decorative design standards. Both DOE and in this definition,’’ and a standard fans. BAS therefore suggests DOE adopt manufacturers would determine ceiling fan is ‘‘a ceiling fan that is not a definition requiring that only highly- whether a fan met the definition of a a very small-diameter ceiling fan, decorative ceiling fans have tip speeds highly decorative fan using the final test highly-decorative ceiling fan or belt- less than or equal to 700 feet per procedure, though manufacturers would 9 driven ceiling fan; and where the lowest minute. (BAS, No. 138 at pp. 2–4) not be required to submit the supporting point on fan blades is >10 inches from DOE understands BAS’s concern information, including any test data, the ceiling; and has a blade thickness of regarding the potential for that supports their highly decorative ≥3.2 mm at the edge and a maximum tip disproportionate impact on fans of classification as part of their speed ≤ the applicable limit in the table different diameters if RPM is the sole certification submission to DOE. In in this definition.’’ (81 FR 1688 (January criterion for determining whether a addition, manufacturers would be 13, 2016)) In both of these definitions, ceiling fan is highly-decorative, but it is required to test highly-decorative fans the table referenced is Table 1 above. for this reason that a maximum airflow according to the test procedure DOE finalizes these definitions, with requirement is also part of the definition established in this final rule to make minor clarifying edits suggested by ALA of a highly-decorative ceiling fan. In representations of the energy efficiency (ALA, No. 137 7 at pp. 4–5), in this regard to BAS’s comment that basing the of such fans (e.g., for the EnergyGuide rulemaking. DOE also defines a multi- definition of highly-decorative ceiling label). mount ceiling fan as ‘‘a ceiling fan that fans off of tip speed rather than RPM is The CA IOUs recommended that DOE can be mounted in the configurations consistent with the definition for include in the proposed definition of associated with the definitions of both standard and hugger fans, DOE notes belt-driven ceiling fans that belt-driven standard and hugger ceiling fans,’’ that the tip speed limits in the standard ceiling fans have one or more motors consistent with the proposed definition and hugger ceiling fan definitions that located outside of the fan head. (CA in the October 2014 test procedure delineate those fans from high-speed IOUs, No. 14410 at p. 1) To reduce NOPR. small-diameter ceiling fans are drawn potential regulatory ambiguity, DOE is DOE also proposed regulatory from UL Standard 507 and based on finalizing the definition of a belt-driven definitions for highly-decorative, belt- safety considerations for fans installed ceiling fan as ‘‘a ceiling fan with a series driven, and very-small diameter ceiling in the residential sector. EPCA describes of one or more fan heads, each driven fans as part of the energy conservation highly-decorative ceiling fans as ceiling by a belt connected to one or more standards rulemaking. Because the fans for which air movement motors that are located outside of the hugger and standard ceiling fan performance is a secondary design fan head.’’ definitions finalized here invoke these feature; therefore, the criteria are DOE received no comments in the terms, DOE is addressing any comments different for highly-decorative ceiling proposed definition of very-small- related to the definitions of these terms fans and including an airflow limit in diameter ceiling fans; therefore, DOE is here. DOE proposed to define a highly- the definition for highly-decorative finalizing the definition of a very-small- decorative ceiling fan as ‘‘a ceiling fan ceiling fans is consistent with the diameter ceiling fan as ‘‘a ceiling fan with a maximum rotational speed of 90 statutory intent. (42 U.S.C. that is not a highly-decorative ceiling RPM and less than 1,840 CFM airflow fan or belt-driven ceiling fan; and has at high speed;’’ a belt-driven ceiling fan 8 This document was submitted to the docket of one or more fan heads, each of which DOE’s rulemaking to develop energy conservation as ‘‘a ceiling fan with a series of one or standards for ceiling fans (Docket No. EERE–2012– has a blade span of 18 inches or less.’’ BT–STD–0045). 7 This document was submitted to the docket of 9 This document was submitted to the docket of 10 This document was submitted to the docket of DOE’s rulemaking to develop energy conservation DOE’s rulemaking to develop energy conservation DOE’s rulemaking to develop energy conservation standards for ceiling fans (Docket No. EERE–2012– standards for ceiling fans (Docket No. EERE–2012– standards for ceiling fans (Docket No. EERE–2012– BT–STD–0045). BT–STD–0045). BT–STD–0045).
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B. Compliance Date that rulemaking, DOE will not assert procedure established in this final rule In the October 2014 test procedure civil penalty authority for violations of (see Section III.A.2 for a discussion of NOPR, DOE proposed a compliance date the applicable standards arising as a ceiling fans not required to be tested). 180 days after the publication of any result of the reinterpretation of the Airflow efficiency appears to be a final amended test procedures in the ceiling fan definition before June 26, nearly-universal metric used to describe Federal Register. ALA urged DOE to not 2017. the efficiency of ceiling fans and consists of airflow (i.e., the service require use of a revised ceiling fans test C. Existing Test Procedure provided by a ceiling fan), as measured procedure until the compliance date of DOE’s test procedure for ceiling fans the energy conservation standards in cubic feet per minute (CFM), divided is codified in appendix U to subpart B by power consumption, as measured in established by the ongoing standards of part 430 of Title 10 of the CFR; 10 rulemaking, because DOE’s revised test watts (W). Additionally, in accordance CFR 429.32; and 10 CFR 430.23(w). The with the proposal in the October 2014 procedure will require manufacturers to current DOE test procedure references test procedure NOPR, DOE is amending retest every basic model of ceiling fan ® the ‘‘ENERGY STAR Testing Facility 10 CFR 429.32 to provide sampling currently on the market. Additionally, Guidance Manual: Building a Testing requirements for determining the DOE regulations already contain a test Facility and Performing the Solid State represented values for ceiling fans. procedure for ceiling fans that can Test Method for ENERGY STAR Stakeholders generally agreed with continue to be used up to the Qualified Ceiling Fans,’’ version 1.1.11 DOE’s test procedure NOPR proposal to compliance date of the new ceiling fan ENERGY STAR has since revised its test use airflow efficiency as the efficiency efficiency standards. (ALA, No. 14 procedure, creating version 1.2 of metric for ceiling fans; however, at p. 2) ENERGY STAR’s guidance manual.12 MacroAir suggested DOE use fan This final rule, which would amend Although certain proposals in this efficiency—the amount of wind power appendix U to Subpart B of 10 CFR 430, rulemaking are consistent with version produced by the fan divided by the would not affect a manufacturer’s ability 1.2 of the ENERGY STAR test power consumption of the fan—instead. to comply with current energy procedure, including test room (MacroAir, No. 6 at pp. 1–4) Part of conservation standards, because DOE dimensions and associated tolerances, MacroAir’s argument for using fan does not currently have performance- DOE has proposed no modification to efficiency as opposed to airflow based standards for ceiling fans as the 15-minute ceiling fan warm-up time efficiency is that fan efficiency does not measured by the airflow efficiency. As specified in the current DOE test overly inflate when revolutions per a result, manufacturers will not need procedure, which is in accordance with minute (RPM) are reduced, whereas time to re-design and re-tool their the specifications of version 1.1 (as airflow efficiency tends to be higher at ceiling fans to meet any energy opposed to the 30-minute warm-up time lower fan speeds. DOE analyzed reports conservation standards based on the before low speed specified in version from testing over 30 ceiling fans in early updated test procedures. The key 1.2). On this issue, the People’s 2014 and found that while airflow requirement manufacturers will need to Republic of China (P.R. China) efficiency does tend to be lower at meet prior to the compliance date of the commented that International higher RPM, the reverse is true for fan concurrent ceiling fan energy Electrotechnical Commission (IEC) efficiency: Fan efficiency tends to be conservation standards is the standard 60879:1986, Performance and lower at lower RPM and higher at higher requirement that any representations of Construction of Electric Circulating RPM. Therefore, in the same way that ceiling fan efficiency be based on the Fans and Regulators, requires a warm- manufacturers could opt to add more test procedures set forth in this final up time of two hours to achieve steady- lower-RPM speeds on their ceiling fans rule on and after the compliance date of state conditions at the test voltage. (P.R. to increase their overall airflow this final rule. Because re-tooling and China, No. 17 at p. 3) efficiency, manufacturers could opt to re-design of ceiling fans will not be DOE determined, however, that a 15- remove lower-RPM speeds on their required, a compliance date 180 days minute warm-up time for testing is ceiling fans to increase their overall fan after the publication of this final rule in sufficient to bring the fan’s performance efficiency. DOE notes that lower-RPM the Federal Register will give into near-steady-state conditions while speeds consume less energy than manufacturers enough time to have their still keeping test burden (in this case, higher-RPM speeds, and the removal of ceiling fans tested to meet the time) to a minimum. Therefore, DOE has lower-RPM speeds eliminates the ability representation requirement. retained the 15-minute warm-up time in of consumers to use lower speeds when Manufacturers are required to use the this final rule. appropriate. Additionally, the fan revised appendix U for representations D. Integrated Efficiency Metric efficiency calculation provided by of ceiling fan efficiency 180 days after MacroAir incorporates blade span as an the publication of any final amended DOE is applying a single metric based input, which could result in test procedures in the Federal Register. on airflow efficiency to all ceiling fans unintentional market shifts (in this case, If DOE establishes minimum energy required to be tested according to the toward smaller blade spans). Because conservation standards for ceiling fans airflow efficiency is the metric accepted based on airflow efficiency in the 11 U.S. Environmental Protection Agency. ENERGY STAR® Testing Facility Guidance Manual: by the majority of the ceiling fan concurrent energy conservation Building a Testing Facility and Performing the Solid industry, DOE is using airflow standards rulemaking, manufacturers State Test Method for ENERGY STAR Qualified efficiency as the basis of the integrated will be required to use the revised Ceiling Fans: Version 1.1. 2002. (Last accessed efficiency metric for ceiling fans in this appendix U for determining compliance October 9, 2015.) https://www.energystar.gov/ia/ partners/manuf_res/downloads/ceiltestfinal.pdf. final rule. with any amended standards. 12 U.S. Environmental Protection Agency. With regard to the integrated With respect to hugger fans, ENERGY STAR® Laboratory Guidance Manual: efficiency metric, BAS and ALA compliance with requirements related to Building a Testing Facility and Performing the Solid commented that the metric should the ceiling fan reinterpretation (see State Test Method for ENERGY STAR Qualification incorporate the effect of energy-saving of Ceiling Fans: Version 1.2. 2011. (Last accessed Section III.A.1) was discussed in the October 9, 2015.) http://www.energystar.gov/ia/ controls (e.g., occupancy sensors) CFLK test procedure final rule. 80 FR partners/manuf_res/downloads/Ceiling_Fan_ intended to reduce the amount of time 80209 (Dec. 24, 2015) As discussed in Laboratory_Guidance_Manual.pdf. a ceiling fan is operated in active mode.
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(BAS, Public Meeting Transcript, No. 5 setting.15 (ALA, No. 8 at p. 6) Hunter a particular ceiling fan setting based on at p. 145; ALA, Public Meeting Fan Company (Hunter) also asked DOE the specific amount of airflow that Transcript, No. 5 at pp. 150–151) to review the hours-of-use assumptions speed provides; instead, because LSSD Results from a Lawrence Berkeley in light of the AcuPOLL survey results, ceiling fans typically have a small National Laboratory (LBNL) survey of especially because energy consumption number of discrete speeds, consumers the residential sector 13 showed that at medium speed is typically less than are expected to select the setting based ceiling fans are operated in unoccupied the mid-point in energy consumption on an imprecise determination of spaces more than 40% of the time, on between high and low speeds. (Hunter, whether a given setting is providing too average, suggesting significant potential Public Meeting Transcript, No. 83 at pp. much or too little airflow. DOE also energy savings for controls. However, 15, 104) ALA again submitted a notes that as a consequence of LSSD DOE is unaware of any similar data for comment in response to the TP SNOPR ceiling fans having discrete speeds, the commercial or industrial sectors, or asking that DOE use the AcuPOLL data precise airflow comparisons between any data quantifying the actual decrease for the LSSD ceiling fans efficiency different LSSD ceiling fans is in energy consumption from the use of metric weighting. (ALA, No. 14 at p. 6) impossible. Test burden would be ceiling fan controls and sensors. Finally, In light of ALA’s and Hunter’s added by having to test all available ceiling fan sensors and controls are an comments and the AcuPOLL survey speed settings to determine which emerging technology, and such devices results, DOE compared the LBNL and settings most closely align with the are currently rare, so it is difficult to AcuPOLL survey results and concluded chosen airflow values. Therefore, in this anticipate which controls may actually that both surveys are relevant sources of final rule DOE is requiring all LSSD reduce energy use, or how much energy information that should be taken into ceiling fans to be tested at their lowest use may be saved by a particular control account to determine the fraction of and highest speed settings, regardless of or sensor type. Given this, DOE has not time spent at each fan speed. DOE the airflow volume provided at those considered measuring the energy therefore estimated that the fraction of settings. time LSSD ceiling fans were operated at savings of controls or sensors in this 2. High-Speed Small-Diameter Ceiling final rule. each speed was equal to the simple average of the fractions reported by the Fans 1. Low-Speed Small-Diameter Ceiling LBNL and AcuPOLL surveys: 33% on For reasons set forth in the test Fans high speed, 38% on medium speed, and procedure SNOPR, DOE proposed in the 29% on low speed. When normalized to SNOPR to test all ceiling fans with blade To apply a single energy efficiency 100%, the fractions for high and low spans less than or equal to seven feet metric to LSSD ceiling fans, DOE is speed are 53% and 47%, respectively. according to a test procedure based on using a weighted average of the airflow DOE is weighting the high and low air velocity sensor measurements (i.e., and power consumption at high and low speed test results for LSSD ceiling fans as in the ENERGY STAR test fan speeds, defined as the highest based on these normalized fractions. procedure), with the caveat that HSSD available and lowest available speeds, Therefore, for calculating the overall fans would still be tested only at high respectively. While most LSSD ceiling efficiency for LSSD ceiling fans, DOE speed. BAS and ALA supported testing fans have one or more speeds between apportions the following daily operating HSSD fans at high speed only. (BAS, high and low, DOE is using only high hours (based on an overall daily usage No. 13 at p. 2; ALA, No. 14 at p. 6) DOE and low speed in the metric to limit test of 6.4 hours per day, as proposed in the is keeping the proposal to test HSSD burden and avoid confusion regarding October 2014 test procedure NOPR): 3.4 fans only at high speed because they the definition of medium speed for hours at high speed, 3.0 hours at low typically do not have discrete speeds, ceiling fans with more than three speed, and 17.6 hours in off or standby and therefore speeds other than high speeds. mode. may not be well defined. Additionally, In the October 2014 test procedure The CA IOUs supported DOE’s use of DOE does not have enough information NOPR, DOE proposed to use hours-of- airflow efficiency as the metric for to estimate a distribution of time spent use results from a Lawrence Berkeley ceiling fan efficiency, but are concerned at speeds other than high speed for the National Laboratory (LBNL) survey of that DOE’s proposal to test LSSD ceiling efficiency metric for HSSD ceiling fans. U.S. ceiling fan owners to weight the fans at low speed and high speed may In the October 2014 test procedure low and high speed test results in the not be specific enough. In particular, the NOPR, DOE proposed operating hours efficiency metric calculation for LSSD CA IOUs suggest DOE require testing of for HSSD ceiling fans of 12 hours per ceiling fans.14 The LBNL survey ceiling fans at speeds that provide a day. No stakeholders indicated indicated these ceiling fans are operated specific airflow, which allows for a disagreement with the SNOPR testing on high setting 41% of the time and on more direct comparison of the utility proposal nor the NOPR’s proposed low setting 22% of the time. In provided by ceiling fans. (CA IOUs, No. operating hours for HSSD fans; response, the American Lighting 15 at pp. 1–3) This suggestion aligned therefore, for calculating the overall Association (ALA) requested that DOE with comments made by BAS and efficiency for these ceiling fans, DOE use data from an AcuPOLL survey Fanimation regarding HSSD and large– apportions the following daily operating indicating different hours of use— diameter ceiling fans during the October hours: 12 hours at high speed and 12 specifically, that ceiling fans are 2014 test procedure NOPR public hours in off or standby mode. operated only 26% of the time on high meeting. (BAS, Public Meeting 3. Large-Diameter Ceiling Fans setting and 36% of the time on low Transcript, No. 5 at pp. 106–108; Fanimation, Public Meeting Transcript, In the test procedure SNOPR, DOE 13 Kantner, C. L. S., S. J. Young, S. M. Donovan, No. 5 at p. 110) DOE concluded that, proposed to test all large-diameter and K. Garbesi. Ceiling Fan and Ceiling Fan Light while airflow is the main utility ceiling fans at five equally-spaced Kit Use in the U.S.—Results of a Survey on Amazon provided by ceiling fans, consumers of speeds: 100% (max speed), 80%, 60%, Mechanical Turk. 2013. Lawrence Berkeley 40%, and 20%. The SNOPR also National Laboratory: Berkeley, CA. Report No. LSSD ceiling fans are unlikely to select proposed that each speed other than LBNL–6332E. (Last accessed October 13, 2015.) ± http://www.escholarship.org/uc/item/3r67c1f9. 15 AcuPOLL® Precision Research, Inc. Survey of 100% is given a tolerance of 1% of the 14 Kantner, et al. (2013), op. cit. Consumer Ceiling Fan Usage and Operations. 2014. average measured RPM at 100% speed.
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BAS and AMCA commented that if In response to the SNOPR, BAS reason to test at high speed first, in this testing at multiple speeds is required, suggested that DOE require testing only final rule, DOE specifies that LSSD the tolerance should be revised to be the at high speed for large-diameter ceiling ceiling fans be tested at low speed first, greater of 2 RPM and ±1% of the average fans. (BAS, No. 13 at p. 8) BAS also and then high speed. measured RPM at 100% speed. (BAS, provided examples of multiple large- As discussed in Section III.D.2, DOE No. 13 at p. 8; AMCA, No. 140 16 at p. diameter fans that are unable to operate is requiring all HSSD fans to be tested 2) The tolerance DOE proposed in the at those five equally-spaced speeds; at high speed only. SNOPR would mean that the RPM therefore, BAS suggests that if testing at 2. Elimination of Test Cylinder From tolerance for fans that only achieve 50 multiple speeds is required, DOE report Test Setup and Specification of Effective RPM at high speed would be 0.5 RPM. the results of each tested speed Area DOE has concluded that the proposed separately. (BAS, No. 13 at pp. 4–5) The tolerance may be too stringent, and California investor-owned utilities (CA In the October 2014 test procedure perhaps not measurable, given the IOUs) suggested reporting the airflow NOPR, DOE proposed to eliminate the measurement tolerance of the test lab and power draw of each of the speeds current test procedure requirement to equipment. On the other hand, BAS’s tested, in addition to the weighted use a test cylinder while conducting suggested tolerance means in practice airflow efficiency. (CA IOUs, No. 15 at airflow measurements. Under the that the 2 RPM tolerance would be in pp. 1–3) BAS added that no reputable proposed rule, the positioning of the effect for any large-diameter ceiling fans source of hours-of-use data exist for ceiling fan and the air velocity sensors that provide 200 RPM or less on high large-volume ceiling fans, which would would remain the same as in the current speed (which is a significant fraction of be required to calculate the weighted test procedure, but without a test the large-diameter ceiling fan market). airflow efficiency of the ceiling fan if cylinder between them. Additionally, According to BAS’s proposal, a ceiling such fans are tested at five speeds. the same effective area and number of fan that only provides 50 RPM at high (BAS, No. 13 at pp. 5–6) sensors as in the current test procedure speed would have a tolerance of ±4% of While hours-of-use for large-diameter would be used to calculate the airflow the average measured RPM at high ceiling fans have not been well-studied, of a low-volume ceiling fan; specifically, speed, which DOE believes may be a more representative ceiling fan to measure the airflow using enough air insufficient to ensure repeatability in efficiency can be calculated by testing velocity sensors to record air delivery test measurements. Therefore, in this large-diameter ceiling fans at multiple within a circle 8 inches larger in final rule, DOE specifies an RPM speeds and weighting all those speeds diameter than the blade span of the tolerance of the greater of 1 RPM and equally (when compared to calculating ceiling fan being tested. ±1% of the average measured RPM at the efficiency at only high speed). DOE received unanimous agreement 100% speed. Therefore, as explained in more detail from stakeholders regarding the In the test procedure SNOPR, to in Section III.F.1, DOE will require proposal to eliminate the test cylinder weight the performance results of the testing of large-diameter ceiling fans at from the test setup. (Hunter, Public ceiling fans at each of the five speeds, up to five speeds. For calculating a Meeting Transcript, No. 83 at pp. 124– DOE took a simple average of hours-of- ceiling fan’s overall efficiency, the 125; Fanimation, Public Meeting use estimates provided by BAS and calculated efficiency at each tested Transcript, No. 83 at p. 125; BAS, No. MacroAir. In doing so, DOE assumed speed will be apportioned active mode 88 at p. 52; American Lighting that BAS agreed with DOE’s estimate in operating hours equally (e.g., if five Association, No. 8 at p. 8) According to 17 the October 2014 NOPR of 12 hours of speeds are tested, each speed is given DOE testing, as well as comments active mode operation per day. (BAS, 20% of the overall daily operating from BAS and Hunter regarding their in- No. 13 at pp. 5–6) BAS took issue with hours). house testing, testing with a cylinder DOE’s assumption and, therefore, does not result in any significant E. Modifications to Existing Test disagreed with DOE’s overall active difference in measured efficiency when Procedure mode estimate of 15 hours per day, compared to testing without the calculated using a simple average of the 1. Required Testing Speeds for Low- cylinder in place; furthermore, testing 12 hours assumed from BAS and the 18 Speed Small-Diameter and High-Speed without a cylinder in place is more hours of active mode operation Small-Diameter Ceiling Fans representative of typical usage submitted by MacroAir. Id. DOE conditions. (BAS, Public Meeting As discussed in Section III.D.1, DOE Transcript, No. 83 at p. 124; Hunter, received no new operating hours is requiring all LSSD ceiling fans to be estimates that could be used to calculate Public Meeting Transcript, No. 83 at pp. tested at high and low speeds. DOE has 124–125) Therefore, in this final rule an alternative active mode operation concluded that this approach will yield time for large-diameter ceiling fans; DOE has eliminated the test cylinder a more representative airflow efficiency from the test setup. however, based on BAS’s comment and than testing only at high speed, while the lack of available large-diameter In regard to the effective area and the limiting test burden and avoiding number of air velocity sensors to use hours-of-use data, DOE has determined confusion regarding the definition of that using the active mode time of 12 during testing, ALA conducted testing medium speed for ceiling fans with according to the test procedure hours per day originally proposed in the more than three speeds. In the test October 2014 test procedure NOPR is proposed in the SNOPR and commented procedure SNOPR, DOE proposed to test that including airflow measurements the most appropriate and representative LSSD ceiling fans at high speed first, estimate. As a result, DOE retains the 12 outside the limits of the proposed and then to test them at low speed. BAS sensor setup would provide a more hours of daily active-mode operation for suggested DOE reverse this proposal, large-diameter ceiling fans proposed in requiring low speed to be tested prior to 17 U.S. Department of Energy–Office of Energy the October 2014 test procedure NOPR. high speed to reduce the likelihood of Efficiency and Renewable Energy. Ceiling Fan Test entrained air affecting the test results. Procedure Development Testing Final Report, Part 16 This document was submitted to the docket of (BAS, No. 13 at p. 7) In light of BAS’s 1: Energy Conservation Program for Consumer DOE’s rulemaking to develop energy conservation Products: Ceiling Fans. 2014. (Last accessed standards for ceiling fans (Docket No. EERE–2012– suggestion, and because DOE has November 5, 2015.) http://www.regulations.gov/ BT–STD–0045). concluded that there is no compelling #!documentDetail;D=EERE-2013-BT-TP-0050-0002.
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accurate representation of the airflow representative of the service provided position of the lowest point on the for many small-diameter ceiling fans. by a ceiling fan. Additionally, imposing ceiling fan blades, rather than ‘‘the (ALA, No. 18 at p. 2) Therefore, ALA a 40 fpm sensor threshold could present middle of the fan blade tips.’’ DOE suggested DOE modify the proposed test test repeatability issues, especially in proposed this because it may be unclear procedure for all small-diameter ceiling cases where one or more sensors how the ‘‘middle of blade tip’’ fans to incorporate data from 12 air measure an average airflow near 40 fpm. measurement specified in the previous velocity sensors per sensor arm, spaced For example, a subset of sensors meets test procedure should be made for at 4-inch intervals, and incorporate the the threshold in one test, but in a ceiling fans having non-flat or unusually airflow data only from sensors recording subsequent test on the same fan a shaped blades. BAS expressed an average airflow of more than 40 feet different subset of sensors meets the agreement with this proposal, and no per minute (fpm). If DOE declined to threshold. DOE also notes that the stakeholders expressed disagreement. adopt this approach, ALA suggested that definition for highly-decorative ceiling (BAS, Public Meeting Transcript, No. 83 DOE use enough air velocity sensors per fans finalized in this rule is based in at p. 132) sensor arm to record air delivery within part on airflow (as measured using the a circle 24 inches larger in diameter SNOPR proposal), so incorporating this Additionally, DOE notes that because than the blade span of the ceiling fan 40 fpm threshold could affect whether HSSD ceiling fans are required to be being tested. (ALA, No. 18 at pp. 2–3) certain fans are categorized as highly- tested according to the same test DOE appreciates ALA’s concern that decorative. procedure prescribed for LSSD ceiling more airflow sensors should be used to In regard to ALA’s alternate proposal fans, with the exception that only high characterize small-diameter ceiling fans of using enough airflow sensors to speed will be tested for HSSD fans (see now that a test cylinder is not required. record air delivery within a circle 24 the discussion in Section III.D.2), this In regard to requiring 12 sensors for all inches larger in diameter than the blade clarification also applies to testing fans, DOE concluded that this approach span of the ceiling fan being tested, DOE HSSD ceiling fans. DOE, therefore, would not provide a representative notes that in practice this would result requires that the appropriate vertical comparison between larger and smaller in adding two extra airflow sensors per position for LSSD and HSSD ceiling ceiling fans. This is because the airflow sensor arm to the number of sensors fans (hereinafter collectively referred to efficiency for all small-diameter ceiling specified in the SNOPR, regardless of as small-diameter ceiling fans) in fans would be evaluated across the same blade span. This also increases by two relation to the air velocity sensors be effective area, despite ceiling fan guides the total number of sensors required to determined by the position of the lowest consistently recommending that be installed in the experimental set up point on the ceiling fan blades. consumers scale the size of a ceiling fan to be able to accommodate testing of the to the size of a room (e.g., installing largest small-diameter ceiling fans. 4. Specification of Fan Configuration larger ceiling fans in larger spaces), Requiring two additional sensors be During Testing making such a comparison unlikely to used during testing may therefore add be representative of typical use. additional cost burden on the order of In the October 2014 test procedure In regards to the 40 fpm minimum, $1,000 per sensor to the test procedure NOPR, DOE proposed that if a fan has DOE conducted testing to determine the without clear evidence that this would more than one mounting option that effect ALA’s proposal would have on a result in a more representative would meet the configuration associated fan’s measured airflow efficiency. measurement. with the definition of a standard ceiling Across nearly 40 fans DOE tested, no Therefore, in this final rule DOE has fan (see section III.A.4), that ceiling fan sensors recorded an average velocity not implemented the proposals set forth should be tested in the configuration less than 40 fpm while the fan was by ALA regarding the number of air with the smallest distance between the operating at high speed; however, velocity sensors to be used in the ceiling and the lowest point of the fan average measurements below 40 fpm airflow measurement, but requires the blades. Similarly, if a fan has more than were observed for some ceiling fans usage of the same number of sensors for one mounting option that would meet while operating at low speed. Therefore, measuring airflow of small-diameter the configuration associated with the either the airflow efficiency of some ceiling fans that was set forth in the TP definition of a hugger ceiling fan (see ceiling fans would be calculated using SNOPR. The number of the sensors section III.A.4), that ceiling fan should a different effective area at high speed being finalized in this test procedure be tested in the configuration with the compared to low speed—which DOE final rule is in line with the number of smallest distance between the ceiling believes would not be representative of sensors required by the current DOE and and the lowest point of the fan blades. typical use, as an installed ceiling fan is Energy Star test procedures for ceiling DOE received general agreement with intended to service the same area fans. Additionally, test labs are already this proposal from Westinghouse regardless of the fan speed setting at accustomed to testing ceiling fans per Lighting, because all ceiling fans would which it is operating at a given time— the current DOE and Energy Star test receive equitable treatment (i.e., tested or all sensors specified for a given procedures, and so retaining the same in the same relative configuration). ceiling fan should be used, because all number of sensors in this final rule sensors were required when taking the would not add any additional test (Westinghouse Lighting, Public Meeting measurement at high speed. burden. Transcript, No. 83 at pp. 132–134) Furthermore, the test results showed Therefore, in this final rule DOE adopts that for many fans operating at low 3. Specification of Method of Measuring the proposal from the October 2014 test speed, a discontinuous set of sensors the Distance Between Ceiling Fan procedure NOPR: Small-diameter would meet the 40 fpm average airflow Blades and Air Velocity Sensors During ceiling fans that can be mounted in requirement (e.g., sensors 1 and 3 would Testing more than one configuration that meets meet the 40 fpm requirement, but not In the October 2014 test procedure the standard or hugger ceiling fan sensor 2). However consumers expect NOPR, DOE proposed to specify that the definition are required to be tested in airflow service from a ceiling fan over appropriate vertical position of LSSD the configuration that minimizes the a continuous area; a discontinuous set ceiling fans in relation to the air velocity distance between the ceiling and lowest of measurements would not be sensors should be determined by the part of the fan blades.
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5. Specification of Test Method for up, there is no additional test burden. specifies the air velocity sensors be Ceiling Fans With Heaters Additionally, testing ceiling fans mounted every 4″ ± 1/16″ along the In the October 2014 test procedure mounted to the real ceiling is more sensor arm. representative of actual use than testing NOPR, DOE proposed that during 9. Specifications To Reduce Testing the ceiling fans mounted to a false testing any heater packaged with a Variation ceiling. For these reasons, DOE requires ceiling fan should be installed, because ALA commented that there are an object hanging directly below the fan mounting the ceiling fan to the real ceiling for testing small-diameter ceiling problems with variation in the results of blades might affect airflow, but DOE’s proposed ceiling fan test switched off. The single stakeholder fans. DOE notes that because HSSD ceiling fans are required to be tested procedure that will raise the cost of comment DOE received from Hunter on according to the same test procedure manufacturer compliance. ALA’s this proposal was supportive. (Hunter, prescribed for LSSD ceiling fans, with members observed these issues by Public Meeting Transcript, No. 83 at pp. the exception that only high speed will testing the same ceiling fan at different 135) Therefore, DOE requires any be tested for HSSD fans (see the test labs and by testing identical ceiling heaters packaged with ceiling fans to be discussion in Section III.D.2), this fans at the same test lab. According to installed but switched off during testing. requirement applies to all small- ALA, separate tests of the same ceiling 6. Specification on Mounting Fans to diameter ceiling fans. fan at different test labs produced test Real Ceiling for Testing results that vary by as much as 31 7. Revised Allowable Measurement percent; and separate tests of identical In the test procedure SNOPR, DOE Tolerance for Air Velocity Sensors ceiling fans at the same test lab proposed to require that all small- In the October 2014 test procedure produced results that vary by as much diameter ceiling fans be mounted to the NOPR, DOE proposed to change the air as 15 percent. ALA stated that the real ceiling (rather than a false ceiling) velocity sensor measurement tolerances variability in test results is beyond for testing. One of the reasons that DOE from the current test procedure (based commercially reasonable tolerances for cited for this proposal was data on ENERGY STAR guidance manual ceiling fan manufacturers. They supplied by BAS in response to the v1.1) value of 1% to 5%, the stringency concluded that these problems will October 2014 test procedure NOPR required by ENERGY STAR guidance effectively require manufacturers to indicating a decrease in measured manual v1.2. Hunter and ALA adopt much larger-than-customary efficiency performance when a ceiling supported this proposal, and no ‘‘safety factors’’ in their ceiling fan fan is mounted to a false ceiling rather stakeholders opposed the proposal. design and development processes to than a real ceiling. (BAS, Public Meeting (Hunter, Public Meeting Transcript, No. ensure that the significant variation in Transcript, No. 5 at pp. 125–126) Other 83 at p. 136; ALA, No. 8 at p. 8) test results will not result in finding of stakeholders expressed agreement with Therefore, DOE requires an air velocity noncompliance by DOE. (ALA, No. 139 mounting ceiling fans to the real ceiling sensor measurement tolerance not to at pp. 5–6) during testing in the test procedure exceed 5% for testing small-diameter Lutron commented that while they do NOPR public meeting. (Fanimation, ceiling fans. It is worth noting that the not manufacture ceiling fans, they agree Public Meeting Transcript, No. 5 at pp. ENERGY STAR guidance manuals with the concerns of the fan industry 129; Minka Group, Public Meeting explicitly list ‘‘suggested equipment’’, with regard to the impact of changing Transcript, No. 5 at pp. 129) However, including air velocity sensors, to be test procedures and the concerns over ALA requested DOE conduct further used for ENERGY STAR testing. The test data consistency. (Lutron, No. 141 at testing at an independent test lab to procedure established by this final rule p. 3) confirm the results supplied by BAS includes equipment specifications, In response to these concerns, DOE before finalizing a requirement to test including tolerances, but does not list conducted a thorough review of all with the ceiling fans mounted to the real specific equipment. Note that some available test data to identify ceiling. (ALA, No. 14 at pp. 4–5) ‘‘suggested equipment’’ in the ENERGY opportunities to decrease testing DOE performed additional testing of STAR guidance manuals may not meet variation. During this review, DOE ceiling fans provided by a number of the equipment specifications included found that sudden temperature manufacturers in December 2015. For in this test procedure, so testing variations in the test room are the this testing, DOE mounted the ceiling laboratories should check their primary driver of test result variations. fan to the real ceiling, and adjusted the equipment and ensure that it is capable The hot-wire anemometer sensors height of the air velocity sensors, as of meeting the specifications being typically used to measure air velocity proposed in the SNOPR. DOE testing adopted in this final rule. sense a change in temperature induced confirmed a decrease in measured by the flow of air. Hot-wire anemometer efficiency when a ceiling fan is mounted 8. Revised Allowable Mounting sensors must have the ability to store to a false ceiling rather than a real Tolerance for Air Velocity Sensors heat, a property known as thermal mass, ceiling. Based on the testing, DOE The proposed regulatory text for to make such measurements. The rate at concludes that no significant additional testing small-diameter ceiling fans in which a hot-wire anemometer loses test burden will be added by testing the test procedure SNOPR required stored heat to air flowing at a given ceiling fans mounted to the real ceiling mounting the air velocity sensors every velocity is fixed based on the hot-wire and adjusting the height of the air four inches along each sensor arm, as anemometer’s physical and material velocity sensors, relative to mounting specified in the current ENERGY STAR properties. If the rate at which the hot- the ceiling fans to a false ceiling, test procedure. BAS suggested DOE alter wire anemometer loses stored heat is keeping the air velocity sensors this requirement to specify a tolerance different than the rate at which the stationary, and adjusting the height of of 1/16″. (BAS, No. 13 at p. 6) DOE temperature in the test room is the false ceiling. There is a one-time agrees that having a specified tolerance changing, the measurements of that hot- cost needed to set up the sensor arms for the air velocity sensor mounting wire anemometer will vary. While the such that the height of the air velocity interval is useful and would not hot-wire anemometers typically have sensors can be adjusted for all ceiling significantly alter the measured test temperature compensating functions, fans. However, once this has been set- results; therefore, in this final rule DOE the thermal mass of a hot-wire
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anemometer is not capable of The SNOPR proposed axes be to another axis if a single, sweeping compensating for sudden changes. In perpendicular to walls or directed into sensor arm is being used. DOE estimates the context of this test procedure, the air corners. 80 FR 31500, 31501 (June 3, additional measurements to meet velocity measured by a sensor may vary 2015) This document maintains the stability criteria to be less than 10 markedly if the temperature in the test requirement for axes perpendicular to minutes total for four additional axes of room has changed significantly and walls but disallows axes directed into measurements (i.e., one additional quickly between measurements. the corners because of a higher degree iteration). Even if two additional Consequently, test results may vary of observed output variation when using measurements in all 4 axes are significantly. this configuration. The SNOPR necessary for each speed, 40 minutes DOE considered many options to proposed to turn off space-conditioning (two iterations multiplied by 10 minutes address the temperature control and air equipment during air velocity multiplied by two speeds) of additional velocity measurement issues, including measurements. 80 FR 31501 (June 3, test time is not a significant increase in alternative air velocity sensors and 2015) This document maintains that overall test time which is roughly 3 changes to test room specifications requirement for forced-air equipment, hours including set up and warm up related to temperature control. DOE but allows non-forced-air equipment to periods and one iteration of air velocity determined that hot-wire anemometers remain on. This allowance is a zero- and power measurements per speed are still the preferred sensor for air burden method for improving tested. DOE recognizes that some labs velocity measurements. DOE did not temperature control and in turn, may need to make investments in find an alternative air velocity minimizing test result variation. The facility upgrades to improve measurement sensor type or apparatus SNOPR proposed voltage temperature control to meet these that would produce significantly better measurements. 80 FR 31501 (June 3, stability criteria. These upgrades could air velocity measurements at similar 2015) This document clarifies where include low-cost weatherization cost, effectiveness, or industry this measurement should be taken to techniques like adding weather familiarity. In addition, changes to the minimize test result variation. DOE does stripping to test-room doors or adding test room specifications related to not expect these provisions to change insulation, or more costly improvements temperature control could result in measured efficiency, only improve like switching from forced-air to non- additional test burden due to capital measurement repeatability. Also, DOE forced-air space-conditioning investment in new equipment or test does not expect these provisions to equipment. DOE testing indicates that room renovations. Ultimately, DOE result in significant increases in test these stability requirements can be met found in its review of available test data burden. in labs that performed testing per the that average air velocity measurements test procedure proposed in the SNOPR In this final rule, DOE is establishing did not vary significantly between axes and the ENERGY STAR test procedure stability criteria to minimize test result for all tests. This leads DOE to believe using forced-air conditioning variation. These stability criteria are in that reducing variation is achievable equipment. Therefore, these stability terms of acceptable air velocity and without using alternative air velocity provisions do not require significant sensors or specifying significant changes power measurement variation. investment in changes to the lab set up to the test room and equipment. Instead, Subsequent measurements must be compared to test procedures that the in this final rule, DOE is adopting the made until stable measurements are industry is already using. following provisions to minimize test achieved. Stable measurements are Requiring measurement axes to be procedure output variation: achieved when: (1) The average air perpendicular to test room walls will • Specifying criteria for air velocity velocity for all axes for each sensor reduce air swirl patterns that can occur and power measurements that indicate varies by less than 5% compared to the in test room corners and potentially lead stable measurements. average air velocity measured for that to unstable test measurements. This • Require measurement axes be same sensor in a successive set of air provision should not result in any perpendicular to test room walls. velocity measurements, and (2) average additional test burden because no • Require forced-air space power consumption varies by less than additional time or materials are needed. conditioning equipment be turned off 1% in a successive set of power Requiring forced-air space during air velocity measurements, but consumption measurements. Variations conditioning equipment be turned off allow for conditioning equipment that that do not meet those criteria indicate during air velocity measurements, but does not supply air to the test room, that a significant change in temperature allowing for conditioning equipment such as radiant conditioning equipment, likely occurred during the test and that does not supply air to the test room to be left on. results will vary too significantly. DOE to be left on, is similar to what DOE • Require voltage be measured within is adopting a provision that proposed in the SNOPR. The difference 6 inches of connection supplied with measurements that do not meet the in the provision being adopted in this fan. definition of stable measurements are final rule and the SNOPR proposal is These provisions are modifications to prohibited from being used in the test that forced-air and non-forced air space those proposed in the June 2015 test result. Instead, this final rule specifies conditioning equipment are procedure SNOPR. The June 2015 that the measurement of air velocity and differentiated and non-forced air space SNOPR proposed air velocity and power power be repeated until stable conditioning equipment can be left on measurements and tolerances on each. measurements are achieved. DOE during air velocity measurements. A lab should be able to measure air understands that this will result in tests Allowing non-forced air space velocity and power in the same way it that require at least two iterations of conditioning equipment to operate would have per the test procedure measurements in each axis for each during air velocity measurements will proposed in the SNOPR. 80 FR 31500– speed tested to achieve stable help keep test room temperature 31502 (June 3, 2015) The stability measurements and a valid test. These conditions stable. Allowing forced-air criteria established by this final rule iterations represent additional test time space conditioning equipment to remain specify that air velocity and power be and therefore burden. Each additional on during air velocity measurements measured until variation in those axis is 100 additional seconds plus the may also help keep test room measurements is satisfactorily limited. time it may take a sensor arm to travel temperature stable, but the air supplied
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to the room from this equipment can 11. Specification of Air Delivery Room are rated for use with both single-phase interfere with air velocity Doors and Air Conditioning Vents and multi-phase electricity. AMCA and measurements. Any lab already using The proposed regulatory text for BAS made the following suggestions: (1) non forced-air space conditioning testing of small-diameter ceiling fans in Test voltage at the rated voltage of the equipment should not experience the test procedure SNOPR indicates that variable-speed device, or the rated additional burden from this provision. the air delivery room’s air conditioning voltage of the motor if no variable-speed Through testing, DOE also determined vents must be closed three minutes control exists; (2) test the fan at the that labs that use forced-air conditioning prior to and during testing. BAS mean input voltage if a voltage range is equipment can produce stable test suggested DOE update this language to specified; (3) test and rate fans capable results despite turning off the forced-air indicate that air delivery room doors of operating with single- and multi- equipment. Such facilities will also not should also be closed during testing, but phase power under both conditions; and require additional time or materials to that the air conditioning vents and (4) test fans with multiple voltage ranges, but the same phase power, at the test as a result of this provision. doors may be open between test mean of the lowest input voltage range. Requiring test voltage be measured sessions to maintain space conditions. (BAS, No. 13 at p. 7) DOE agrees with (AMCA, No. 140 at p. 3; BAS, No. 138 within 6 inches of the connection 18 BAS’s suggestion, and notes that further at pp. 16–20) supplied with the fan avoids variations DOE appreciates the comments down in that same section of the in measurements that may result from received regarding test input voltage, regulatory text the procedure requires and agrees that a provision should be measuring voltage at varying distances the test lab to ‘‘close all doors and made to test certain fans that are not from the supplied connection. Wires vents.’’ In this final rule, DOE requires rated for use with 120 V or 240 V. DOE have losses that are proportional to that all doors and vents must be closed also agrees that if multiple voltage length. Consequently, a voltage three minutes prior to and during ranges are specified for a given ceiling measurement taken 12 inches from the testing, but that they may be opened fan, the ceiling fan should be tested supplied connection will be different when testing is not taking place (e.g., according to the lower voltage range. than a measurement taken 6 inches from between testing different speeds of a DOE therefore finalizes the following the supplied connection. Putting limits ceiling fan, or between testing different supply voltage requirements for all on the distance of the voltage ceiling fans) to maintain space tested ceiling fans: The supply voltage measurement will minimize differences conditions. Better maintaining space must be: (1) 120 V if the ceiling fan’s in test results that may otherwise result conditions by allowing doors and vents minimum rated voltage is 120 V or the between test labs or iterations of the test to be open as often and long as possible lowest rated voltage range contains 120 in a given lab. except for three minutes prior and V, (2) 240 V if the ceiling fan’s during testing will facilitate achieving minimum rated voltage is 240 V or the 10. Revised Testing Temperature the stability criteria established by this lowest rated voltage range contains 240 Requirement document, as discussed in section V, or (3) the ceiling fan’s minimum III.E.9. In the test procedure SNOPR, the rated voltage (if a voltage range is not proposed regulatory text for testing 12. Specification of Power Source and given) or the mean of the lowest rated small-diameter ceiling fans required the Measurement voltage range, in all other cases. air delivery room temperature be kept at The proposed regulatory text for In regard to the comments about ± 76 F 2 F during testing, which is in testing all fans in the test procedure testing and rating ceiling fans that can line with the current DOE test SNOPR instructs the test lab to measure be operated on both single- and multi- procedure for ceiling fans (which is power consumption of the fan, but it phase power under both conditions, based on the ENERGY STAR test does not specify how the fan power DOE has determined that LSSD and procedure v. 1.1). BAS suggested DOE should be measured in the case of fans HSSD fans are typically operated on update this requirement to 70 F ± 5 F, operated with multi-phase electricity. single-phase circuits whereas large which aligns with the ENERGY STAR BAS suggested DOE specify that active diameter fans are typically operated on test procedure v. 1.2. BAS indicated that (real) power be measured in all phases multi-phase circuits. Therefore, DOE tightening the air temperature simultaneously, as many large-diameter specifies in this final rule that LSSD and HSSD fans capable of operating with requirements results in significant ceiling fans are operated with three- single- and multi-phase power be tested burden on the test lab, and also noted phase electricity. (BAS, No. 13 at p. 8) DOE agrees with BAS’s suggestion, with single-phase power, and large that the anemometers and associated diameter fans capable of operating with software used by the test labs which will alleviate any confusion from measuring power consumption of fans single- and multi-phase power be tested automatically correct for changes in with multi-phase power. DOE will temperature and humidity. (BAS, No. 13 utilizing multi-phase electricity. DOE also notes that this requirement aligns further allow manufacturers to test such at p. 7) DOE has concluded that relaxing fans in the other configuration (i.e., the temperature requirement from 76 F with the power measurement requirements set forth in AMCA 230–15. using multi-phase power for LSSD and ± 2 F to 70 F ± 5 F will not significantly HSSD fans and single-phase power for impact the measured test results if In this final rule, DOE specifies that active (real) power must be measured large diameter fans) and make stable measurement criteria are simultaneously in all phases for all representations of efficiency associated achieved and will align with the ceiling fans required to be tested using with both single and multi-phase requirements of the current industry- the test procedure. electricity if a manufacturer desires to standard test procedure; therefore, in The test procedure SNOPR also do so, but the test results in this this final rule, DOE specifies the air instructs that the tests be conducted configuration will not be valid to assess ± delivery room temperature to be 70 F with the fan connected to a supply 5 F during testing. Stable measurement 18 Both documents were submitted to the docket circuit with a specific voltage according of DOE’s rulemaking to develop energy criteria are described in more detail in to the fan’s rating (120 V or 240 V), but conservation standards for ceiling fans (Docket No. section III.E.9. it does not specify how to test fans that EERE–2012–BT–STD–0045).
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compliance with any amended energy the measurements of the diameter of the would align with AMCA 230–15. (BAS, conservation standard. DOE also largest circle swept by any part of the No. 13 at p. 7) DOE notes that it is clarifies that any ceiling fan rated to fan blade assembly (including any blade currently unaware of any commercially- operate on only single-phase power attachments) of the tested samples, available large-diameter fans with blade must be tested and rated at single-phase rounded to the nearest inch. spans greater than 24 feet. Because power. Similarly, any ceiling fan rated F. Additional Test Methods larger ceiling fans are not currently to operate on only multi-phase power commercially available, DOE cannot must be tested and rated at multi-phase 1. Test Method for Large-Diameter confirm that that the test procedure will power. Ceiling Fans produce reliable results for fans larger 13. Specification of Blade Span In the October 2014 test procedure than 24 feet in diameter. In addition, Measurement NOPR, DOE proposed to incorporate DOE prefers to align the scope of the test AMCA 230–12 by reference. An updated procedure with the scope of the The proposed regulatory text for version of AMCA 230 published on concurrent energy conservation testing all fans in the test procedure October 16, 2015. DOE is incorporating standards rulemaking for ceiling fans, SNOPR instructs the test lab to conduct by reference AMCA 230–15 in this final which includes fans with blade spans the appropriate test procedure based, in rule. The test procedure specified in less than or equal to 24 feet. Therefore, part, on the blade span of the ceiling AMCA 230–15 is fundamentally in this final rule DOE confirms that the fan, but it does not clearly articulate if equivalent to the test procedure test procedure is applicable to ceiling or how the blade span is to be specified in AMCA 230–12 (i.e., both fans up to 24 feet in diameter. measured. BAS suggested that the blade test procedures use thrust, as measured BAS supported the test room span of a particular ceiling fan be by a load cell, to determine a ceiling determined as follows: (1) The blade dimensions proposed in the SNOPR and fan’s airflow), with a few notable no stakeholders expressed span should be defined as the diameter differences: (1) AMCA 230–15 is of the largest circle swept by any part of disagreement. (BAS, No. 13 at p. 6) In applicable to ceiling fans of all blade this final rule DOE requires the the fan blade assembly, including any spans, whereas AMCA 230–12 was only following test room dimensions for blade attachments; and (2) The rated applicable to ceiling fans with blade large-diameter ceiling fans: (1) The blade span of a particular ceiling fan spans less than or equal to 6 feet; (2) minimum distance between the ceiling should be the average or the larger of the AMCA 230–15 specifies the number of and the blades of a ceiling fan being measured blade spans of the multiple speeds to test, whereas AMCA 230–12 tested shall be 40% of the ceiling fan samples required for testing. (BAS, No. did not provide such a specification; blade span; (2) the minimum distance 138 19 at pp. 16–17) DOE concludes that and (3) AMCA 230–15 has updated test between the floor and the blades of the the blade span of a ceiling fan is the room dimensions relative to AMCA fan shall be the larger of 80% of the diameter of the largest circle swept by 230–12. In the test procedure SNOPR, ceiling fan blade span or 4.6 m; 21 any part of the fan blade assembly, DOE proposed to limit the applicable and including any blade attachments. blade span to less than or equal to 24 (3) the minimum distance between the Furthermore, DOE agrees that the feet, to align with the anticipated centerline of a ceiling fan and walls average measured blade span of the number of speeds to test to be specified and/or large obstructions is 150% of the tested ceiling fan samples, rounded to in AMCA 230–15, and to align with the ceiling fan blade span. the nearest inch, be used for anticipated test room dimensions to be DOE also notes that the efficiency determining a ceiling fan’s product class specified in AMCA 230–15. metric for large-diameter ceiling fans is and the number of air velocity sensors (Anticipated changes to AMCA 230 to be calculated based on the fan required (in the case of an LSSD fan), were based on comments from AMCA efficiency at up to five speeds (see the rather than using the ceiling fan’s rated (AMCA, No. 84 20 at p. 2.)) discussion provided in Section III.D.3). blade span (which in some cases may In regard to the test procedure SNOPR Table 2 provides the requirements for not be publicly advertised). Therefore, proposal to limit the blade span selecting which speeds to test and how for the purposes of this final rule test applicable for testing to 24 feet, BAS to weight the efficiency results at each procedure, DOE requires that the blade suggested that DOE not have a tested speed for calculating the span of a ceiling fan be the average of maximum blade span limit at all, which weighted efficiency metric.22
TABLE 2—REQUIREMENTS FOR TESTING LARGE-DIAMETER CEILING FANS
Efficiency metric weighting for each Available speeds Number of speeds to test Which speeds to test speed ** (%)
1 ...... All ...... All ...... 100 2 ...... All ...... All ...... 50 3 ...... All ...... All ...... 33 4 ...... All ...... All ...... 25 5 ...... All ...... All ...... 20 6+ (discrete) ...... 5 ...... 5 fastest speeds ...... 20
19 This document was submitted to the docket of 21 In the SNOPR, DOE proposed a minimum requirement. 4.6 m is approximately 15.1 feet, so DOE’s rulemaking to develop energy conservation distance between the floor and the blades of the the difference between the SNOPR proposal and standards for ceiling fans (Docket No. EERE–2012– ceiling fan as the larger of 80% of the ceiling fan AMCA 230–15 is trivial. BT–STD–0045). blade span or 15 feet, based on comments submitted 22 The percentages in the final row of the ‘‘Which 20 This document was submitted to the docket of by BAS and AMCA indicating this would be the Speeds to Test’’ column in Table 2 are based on the DOE’s rulemaking to develop energy conservation requirement set forth in AMCA 230–15. However, RPM at the fastest speed setting (e.g., 80% speed standards for ceiling fans (Docket No. EERE–2012– the AMCA 230–15 requirement indicates 80% of corresponds to 80% of the measured RPM at the BT–STD–0045). the ceiling fan blade span or 4.6 m for this fastest speed).
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TABLE 2—REQUIREMENTS FOR TESTING LARGE-DIAMETER CEILING FANS—Continued
Efficiency metric weighting for each Available speeds Number of speeds to test Which speeds to test speed ** (%)
Infinite (continuous) * ...... 5 ...... 100% (max) speed ...... 20 80% speed ...... 60% speed ...... 40% speed ...... 20% speed ...... * This corresponds to a ceiling fan, such as a ceiling fan with a variable-frequency drive (VFD), which operates over a continuous (rather than discrete) range of speeds. ** All tested speeds are to be weighted equally. Therefore, the weighting shown here for a ceiling fan with three available speeds is approximate.
Therefore, DOE requires all large- these fans in both configurations proposed in the October 2014 test diameter ceiling fans to be tested provides the most representative procedure NOPR. according to AMCA 230–15, but with measurement of efficiency. 4. Test Method for Ceiling Fans Where the modification that the number of 3. Test Method for Ceiling Fans With the Airflow Is Not Directed Vertically speeds to be tested is as set forth in Multiple Fan Heads Table 2. In the October 2014 test procedure In the October 2014 test procedure NOPR, for ceiling fans where the airflow 2. Test Method for Multi-Mount Ceiling NOPR, DOE proposed to test ceiling fans is not directed vertically, DOE proposed Fans with multiple fan heads according to the to adjust the ceiling fan head such that Because multi-mount ceiling fans can following: (1) A single fan head is to be the airflow is as vertical as possible and be installed in configurations associated tested, with the fan head in the same oriented along one of the four sensor with both standard and hugger ceiling position as when a fan with a single axes. In this proposal, the distances fans, DOE proposed in the October 2014 head is tested, such that it is directly between the lowest point on the fan test procedure NOPR to test multi- over sensor 1 (i.e., at the center of the blades and the air velocity sensors mount ceiling fans in both test set-up, where the four sensor axes should be the same as for all other LSSD configurations: (1) In the configuration meet); (2) the effective blade span is the ceiling fans. Then, instead of measuring associated with standard ceiling fans, blade span of an individual fan head (if the air velocity for only those sensors while minimizing the distance between all fan heads are the same size) or the directly beneath the ceiling fan, the air the ceiling and the lowest part of the fan blade span of the largest fan head (if the velocity should be measured at all blades, and (2) in the configuration fan heads are of various sizes); (3) the sensors along the axis for which the associated with hugger ceiling fans, distance between the air velocity airflow is oriented, as well as the axis while minimizing the distance between sensors and the fan blades of the oriented 180 degrees with respect to that the ceiling and the lowest part of the fan centered fan head should be the same as axis. Using the same total number of blades. DOE received feedback from for all other small-diameter ceiling fans; sensors as would be utilized if the BAS indicating agreement with this (4) the airflow measurements should be airflow was directly downward, the proposal. (BAS, Public Meeting made in the same manner as for all airflow should be calculated based on Transcript, No. 83 at p. 81) However, other LSSD ceiling fans, but with only the continuous set of sensors with the ALA suggested DOE revise this proposal the centered fan head switched on; (5) largest air velocity measurements. The to allow manufacturers to choose to test at least one of each unique category of effective area used to calculate airflow multi-mount fans in either both fan head is to be tested for ceiling fans under this proposal would be the same configurations or only the configuration that include more than one category of as for an un-tilted ceiling fan with the associated with hugger ceiling fans, as fan head (if all the fan heads are the same blade span. that configuration should provide a same, then only one fan head needs to In response to this proposal, conservative measured efficiency when be tested); (6) the total airflow is to be Fanimation expressed agreement, and compared to the efficiency measurement determined by multiplying the airflow no other stakeholders provided in the configuration associated with results of an individual fan head by the comment. (Fanimation, Public Meeting standard ceiling fans. (ALA, No. 8 at p. number of fan heads of that category Transcript, No. 83 at p. 140) In this final 8) (and summing over all of the categories rule, DOE requires ceiling fans where AcuPoll survey data submitted by of heads); (7) the power consumption at the airflow is not directed vertically to ALA suggest that a significant fraction a given speed is to be measured with all be tested in accordance with the of multi-mount ceiling fans are installed fan heads switched on. aforementioned provisions proposed in in the configuration associated with In response, multiple stakeholders the October 2014 test procedure NOPR. hugger fans and a significant fraction are expressed agreement with DOE’s 5. Test Method for Power Consumption installed in the configuration associated proposal. (Fanimation, Public Meeting in Standby Mode with standard fans, and DOE cannot Transcript, No. 83 at p. 138; Matthews know the installation configuration a Fan Company, Public Meeting In the 2014 test procedure NOPR, priori.23 Because consumers may install Transcript, No. 83 at p. 138; Minka DOE proposed to add standby mode multi-mount fans in either Group, Public Meeting Transcript, No. power consumption testing for all configuration, DOE believes testing 83 at p. 138; ALA, No. 8 at p. 8) ceiling fans sold with hardware to Therefore, DOE requires all multi-head maintain any of the standby functions 23 AcuPOLL® Precision Research, Inc. Survey of ceiling fans to be tested in accordance defined in 42 U.S.C. Consumer Ceiling Fan Usage and Operations. 2013. with the aforementioned provisions 6295(gg)(1)(A)(iii)(II) either (1) installed
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in the body of the ceiling fan, or the however, this reflects the fact that the agency shall prepare a final ceiling fan light kit packaged with it, equivalent standby power consumption regulatory flexibility analysis (FRFA). prior to sale, or (2) packaged with the represents a larger fraction of the overall As required by Executive Order 13272, ceiling fan, and which is the sole means power consumption for more efficient ‘‘Proper Consideration of Small Entities of operating the ceiling fan. DOE ceiling fans. In other words, the effect of in Agency Rulemaking,’’ 67 FR 53461 proposed to perform the standby test including standby power consumption (August 16, 2002), DOE published following the active mode test in for a more efficient fan is not greater in procedures and policies on February 19, accordance with the procedure in IEC absolute terms, but rather greater only 2003 to ensure that the potential standard 62301:2011. Because IEC relative to the energy used by that fan impacts of its rules on small entities are 62301:2011 would add at least 40 in active mode. This is a result of properly considered during the DOE minutes to the test procedure for ceiling incorporating standby mode into any rulemaking process. 68 FR 7990. DOE fans subject to standby mode testing, integrated efficiency metric, as required has made its procedures and policies DOE proposed to reduce the IEC by 42 U.S.C. 6295(gg)(2). Therefore, available on the Office of the General 62301:2011-specified interval of time DOE retains the method proposed in the Counsel’s Web site: http://energy.gov/ over which testing occurs and period of October 2014 test procedure NOPR for gc/office-general-counsel. time prior to conducting the standby incorporating standby power DOE reviewed this final rule under testing. Specifically, DOE proposed to consumption into the integrated the provisions of the Regulatory wait three minutes after active mode efficiency metric. Flexibility Act and the policies and functionality has been switched off to procedures published on February 19, begin the standby mode test and then to G. Certification and Enforcement 2003. The final rule prescribes test collect power consumption data in Ceiling fan manufacturers must procedure amendments that would be standby mode for 100 seconds. submit certification reports for each used to determine compliance with any All stakeholders expressed agreement basic model before it is distributed in amended energy conservation standards with DOE’s proposal to include standby commerce per 10 CFR 429.12. that DOE may prescribe for ceiling fans. testing. However, BAS noted that the Components of similar design may be DOE has prepared a final regulatory proposed method of incorporating substituted without additional testing, if flexibility analysis (FRFA) for this standby power losses into the airflow the substitution does not affect the rulemaking. The FRFA describes efficiency metric could penalize very energy consumption of the ceiling fan. potential impacts on small businesses efficient ceiling fans while boosting the (10 CFR 429.11) Ceiling fan certification associated with ceiling fan testing efficiency of lower-efficiency ceiling reports must follow the product-specific requirements. fans, and BAS provided example data sampling and reporting requirements DOE has transmitted a copy of this for support. (BAS, Public Meeting specified in 10 CFR 429.32. Consistent FRFA to the Chief Counsel for Advocacy Transcript, No. 5 at pp. 100–102) with the dates specified for use in of the Small Business Administration DOE appreciates BAS’s review of the section III.B, ceiling fan manufacturers for review. proposed method for incorporating are required to calculate ceiling fan 1. Description of the Need For, and standby loss into the airflow efficiency efficiency utilizing the calculations Objectives of, the Rule metric; however, DOE notes that BAS’s provided in revised appendix U. Upon assertion that high-efficiency ceiling the compliance date of any amended A description of the need for, and fans are disproportionately penalized energy conservation standards for objectives of, the rule is set forth for any standby consumption is based ceiling fans, manufacturers would be elsewhere in the preamble and not on a comparison of the measured required to follow the revised reporting repeated here. efficiency calculated using the existing requirements provided at 10 CFR 429.32 ENERGY STAR test procedure and the 2. Description of Significant Issues for each ceiling fan basic model. measured efficiency calculated using Raised by Public Comment the test procedure proposed in the IV. Procedural Issues and Regulatory DOE received no comments October 2014 test procedure NOPR. Review specifically on the initial regulatory Using this comparison, BAS found that A. Review Under Executive Order 12866 flexibility analysis prepared for this an efficient ceiling fan having 1.5 W of rulemaking. Comments on the economic power consumption in standby mode The Office of Management and Budget impacts of the rule are discussed has a calculated efficiency has determined that test procedure elsewhere in the preamble and did not approximately 13% lower than the rulemakings do not constitute necessitate changes to the analysis efficiency calculated using the current ‘‘significant regulatory actions’’ under required by the Regulatory Flexibility ENERGY STAR test method. BAS also section 3(f) of Executive Order 12866, Act. found that less efficient ceiling fans Regulatory Planning and Review, 58 FR with standby power consumption 51735 (Oct. 4, 1993). Accordingly, this 3. Description of Comments Submitted actually received an increase in action was not subject to review under by the Small Business Administration calculated efficiency using the proposed the Executive Order by the Office of The Small Business Administration test method. When comparing the Information and Regulatory Affairs did not submit comments on DOE’s measured efficiency using the proposed (OIRA) in the Office of Management and proposed rule. test method with and without standby, Budget (OMB). however, DOE concluded that all ceiling 4. Description of Estimated Number of B. Review Under the Regulatory fans with standby power consumption Small Entities Regulated receive an efficiency penalty relative to Flexibility Act For the manufacturers of the covered the calculated efficiency assuming no The Regulatory Flexibility Act (5 ceiling fan products, the Small Business standby power consumption. DOE notes U.S.C. 601 et seq.) requires that when an Administration (SBA) has set a size that this approach penalizes more agency promulgates a final rule under 5 threshold, which defines those entities efficient ceiling fans more than less U.S.C. 553, after being required by that classified as ‘‘small businesses’’ for the efficient ceiling fans for an equal section or any other law to publish a purposes of the statute. DOE used the amount of standby power consumption; general notice of proposed rulemaking, SBA’s small business size standards to
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determine whether any small entities ceiling fans that produce large volumes to perform the current ENERGY STAR would be subject to the requirements of of airflow (i.e., large-diameter ceiling test procedure for ceiling fans, which is the rule. See 13 CFR part 121. The size fans) also meet the EPCA definition. 80 similar to DOE’s final test procedure, standards are listed by North American FR 80209 (Dec. 24, 2015) The changes and the changes in cost associated with Industry Classification System (NAICS) in interpretation of the ceiling fan the key differences between the two test code and industry description and are definition discussed above result in the procedures. DOE expects that the available at: https://www.sba.gov/sites/ applicability of the design standards set following modifications would impose a default/files/files/Size_Standards_ forth in EPCA at 42 U.S.C. 6295(ff)(1) to change in test burden compared to the Table.pdf. Ceiling fan manufacturing is the following types of fans 30 days after current ENERGY STAR test procedure: classified under NAICS code 335210, the publication of the ceiling fan light (1) The requirement to test at only one ‘‘Small Electrical Appliance kit final test procedure, which is fan speed instead of three speeds; (2) the Manufacturing.’’ The SBA sets a January 25, 2016. 80 FR 80209 (Dec. 24, elimination of the requirement to use a threshold for NAICS classification for 2015). test cylinder; (3) the requirement to 335210 of 1,500 employees or less.24 DOE research indicates that all ceiling mount the ceiling fan to the real ceiling; DOE reviewed ALA’s list of ceiling fans currently on the market, including (4) the reduced warm up time before fan manufacturers,25 the ENERGY STAR large-diameter ceiling fans, appear to testing at low speed, (5) the requirement Product Databases for Ceiling Fans,26 meet the EPCA design standards. For to conduct standby-mode testing, and the California Energy Commission’s large-diameter ceiling fans, DOE (6) specifying criteria for air velocity Appliance Database for Ceiling Fans,27 searched for product specifications on and power measurements that indicate and the Federal Trade Commission’s the Web sites of manufacturers of large- stable measurements. In total, DOE Appliance Energy Database for Ceiling diameter ceiling fans and from Web estimates that these changes reduce the Fans.28 Based on this review, using data sites of retailers of HSSD ceiling fans. typical time to perform the final test on the companies for which DOE was Only one large-diameter ceiling fan procedure by one hour compared to the able to obtain information on the model was found with a light kit, and ENERGY STAR test procedure, as numbers of employees, DOE identified the fan controls were separate from the described below. 66 companies that sell ceiling fans lighting controls for that fan. Most large- (1) Testing at only one speed instead covered by this test procedure. 25 of diameter ceiling fans appeared to be of three yields a total test time that is these companies are large businesses capable of operating at more than one approximately 70 minutes shorter than with more than 1,500 total employees. speed (typically with an adjustable the ENERGY STAR test procedure. DOE DOE determined that of the remaining speed control). specifies that only high speed is to be 41 companies with less than 1,500 Based on this research, DOE does not tested. Based on test quotes from third- employees, only six companies are expect any cost of complying with the party labs, DOE estimates that the small businesses that maintain domestic design requirements for small business average cost for each speed is $87.50 per production facilities. Of the six small manufacturers of large-diameter ceiling speed. Therefore, testing at only one ceiling fan businesses, four manufacture fans. DOE discusses the costs of testing speed instead of three reduces the total HSSD ceiling fans and three in the following section. test cost by $175 per ceiling fan. (2) Not requiring use of a test cylinder manufacture large-diameter ceiling b. Projected Testing Costs fans.29 eliminates any potential costs associated DOE establishes test procedures that with purchasing new test cylinders. If 5. Description of the Projected measure energy efficiency or energy use the test procedure required the use of Compliance Requirements of the Final of a representative average use cycle for test cylinders, then a new cylinder Rule a given product, and that are not unduly would be necessary to test any ceiling a. Additional Fans Required To Be burdensome to conduct. If the fan with a diameter that does not Tested concurrent rulemaking regarding energy correspond to one of the cylinders in a conservation standards for ceiling fans test lab’s existing inventory. Based on In the ceiling fan light kit test results in efficiency performance discussions with third-party testing procedure final rule, DOE reinterpreted standards, DOE would require testing facilities, DOE estimates that new test the EPCA definition of ceiling fan to for certification of two ceiling fans per cylinders would cost approximately include hugger fans and stated that basic model, the minimum sample size $2,000–3,000 per cylinder. By not using required by 10 CFR 429.11. To a cylinder, these costs will be avoided. 24 U.S. Small Business Administration, Table of determine the potential cost of the final Not requiring a test cylinder also Small Business Size Standards (August 22, 2008) (Available at: http://www.sba.gov/sites/default/ test procedure on small ceiling fan shortens the test time of DOE’s final test files/Size_Standards_Table.pdf). manufacturers of HSSD and large- procedure relative to ENERGY STAR’s 25 The American Lighting Association, list of diameter ceiling fans under a potential test procedure for all HSSD ceiling fans, Manufacturers & Representatives (Available at: energy conservation standard for ceiling because time is not required to put a test http://www.americanlightingassoc.com/Members/ cylinder in place for each test (estimated Resources/Manufacturers-Representatives.aspx). fans, DOE estimated the cost of testing 26 The U.S. Environmental Protection Agency and two ceiling fans. The cost of testing was to take 15 minutes). the U.S. Department of Energy, ENERGY STAR then multiplied over the estimated (3) Requiring mounting ceiling fans to Ceiling Fans—Product Databases for Ceiling Fans number of basic models produced by a the real ceiling involves a one-time lab (Available at: http://www.energystar.gov/products/ small manufacturer. The estimated cost cost for a mechanism that allows for the certified-products/detail/ceiling-fans). adjustment of the height of the air 27 The California Energy Commission, Appliance of testing HSSD and large-diameter Database for Ceiling Fans (Available at: http:// ceiling fans is discussed in further detail velocity sensors to keep the distance www.appliances.energy.ca.gov/QuickSearch.aspx). below. between the bottom of the fan blades 28 The Federal Trade Commission, Appliance and the air velocity sensor heads at a Energy Databases for Ceiling Fans (Available at: High-Speed Small-Diameter Ceiling specified vertical distance (43 inches). http://www.ftc.gov/bcp/conline/edcams/eande/ Fans Based on the materials employed and appliances/ceilfan.htm). 29 These numbers do not add up to six because DOE estimated the cost to test HSSD test quotes from third-party labs, DOE one company manufacturers both types of ceiling ceiling fans, based on estimates from estimates the one-time cost to construct fans. third-party testing facilities of the cost a mechanism to allow for the
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adjustment of the height of the air point on the ceiling fan blades, (8) In response to stakeholder comments, velocity sensors is less than $2,000. specifying that ceiling fans should be DOE considered alternatives to the test Once the mechanism is constructed, it tested in the configuration that procedure established by this final rule. can be used to test all HSSD ceiling minimizes the distance between the Specifically, DOE considered requiring fans, and therefore does not add ceiling and the lowest part of the fan additional sensors for HSSD fan testing. substantial test cost thereafter. blades, (9) requiring that any heaters DOE found that additional sensors (4) Requiring 15 minutes of warm up packaged with ceiling fans to be would cost an estimated $1,000 per time before testing at low speed installed but switched off during testing, sensor added, but found no evidence compared to 30 minutes in the ENERGY (10) revised allowable measurement that additional sensors would improve STAR test procedure further reduces the tolerance for air velocity sensors, (11) how well the test procedure represents relative amount of time required for revised allowable mounting tolerance an HSSD fan’s typical energy use. DOE’s final test procedure by 15 for air velocity sensors, (12) revised Consequently, DOE decided not to minutes. testing temperature requirement, (13) adopt provisions for additional sensors. (5) Requiring standby-mode testing for requiring that all doors and vents must ceiling fans with standby functionality be closed during testing, (14) specifying Large-Diameter Ceiling Fans yields an additional cost for such fans. that active (real) power must be DOE estimated the cost to test a large- Using the quotes provided by third- measured simultaneously in all phases, diameter ceiling fan based on party testing facilities, DOE estimates (15) requiring measurement axes be discussions with testing facilities that the standby test for all ceiling fans perpendicular to test room walls, (16) capable of performing the AMCA 230 with standby functionality costs $200 require forced-air space conditioning test procedure as well as cost estimates per basic model. equipment be turned off during air based on the time and labor costs (6) Specifying criteria for air velocity velocity measurements, but allow for necessary to perform the test procedure and power measurements that indicate conditioning equipment that does not on large-diameter ceiling fans. DOE stable measurements may increase test supply air to the test room, such as estimates that the one-time cost for a lab time and require one-time capital costs. radiant conditioning equipment, to be to buy a load-cell, a fabricated load-cell If stability criteria are not met after left on, and (17) requiring voltage be frame, power meter, and one air velocity taking air velocity and power measured within 6 inches of connection sensor is approximately $4,500. Based measurements in each axis, these supplied with fan. on test quotes, DOE estimates that the measurements must be repeated until Based on all of the differences test procedure for large-diameter ceiling stability criteria are met. Measurements between the final test procedure and the fans will cost manufacturers on average in each additional axis is 100 additional ENERGY STAR test procedure, and $7,500 per basic model for testing at up seconds plus the time it may take a estimates from third-party testing sensor arm to travel to another axis if a to five speeds. Using the standby test facilities of the labor costs associated quote of $200 per basic model, DOE single, sweeping sensor arm is being with these differences, DOE estimates used. DOE estimates this to be less than estimates that the total test cost for the that the final test procedure for HSSD final test procedure and standby testing 10 minutes total if four additional axes ceiling fans will cost $1,325 on average for a large-diameter ceiling fans will be of measurements are needed to meet per basic model, once the mechanism $7,700. stability criteria. Even if four additional for the adjustment of the height of the measurements in all four axes are air velocity sensors is constructed, and For the three small business necessary, only 40 minutes of additional the insulation and non-forced-air manufacturers of large-diameter ceiling test time would be required. DOE conditioning system is added, if fans that DOE identified, the number of recognizes that some labs may need to necessary. DOE did not find accurate basic models produced per make investments in facility upgrades to data on the percentage of HSSD ceiling manufacturer varies from one to 30. improve temperature control to meet fans with standby capability, though Therefore, based on the test cost per these stability criteria. These upgrades DOE located some HSSD ceiling fans ceiling fan basic model, the testing cost could include low-cost weatherization without standby capability in Web in the first year would range from techniques like adding weather searches. To provide a conservative cost approximately $7,700 to $231,000 for stripping to test-room doors or adding estimate, DOE made the assumption that small manufacturers of large-diameter insulation. More costly improvements, all HSSD ceiling fans should be tested ceiling fans. DOE expects this cost to be like switching from forced-air to non- for standby power. Using the standby lower in subsequent years because only forced-air space-conditioning test quote of $200 per basic model, DOE new or redesigned ceiling fan models equipment, are unlikely but may be estimates that the total test cost for the would need to be tested. necessary. Even the most costly upgrade final test procedure and standby testing 6. Description of Steps Taken To of adding insulation and switching to a for single-headed HSSD ceiling fans will Minimize Impacts to Small Businesses non-forced-air conditioning system be $1,525. would only be a one-time cost on the For the four small business DOE considered a number of industry order of $5,000. Once these upgrades to manufacturers of HSSD ceiling fans that and governmental test procedures that the test room are completed, they can be DOE identified, the number of basic measure the efficiency of ceiling fans to used to test all HSSD ceiling fans, and models produced per manufacturer develop the test procedure in today’s therefore do not add substantial test cost varies significantly from one to rulemaking. There appear to be two thereafter. approximately 30. Therefore, based on common approaches to testing ceiling In addition, DOE expects that the the test cost per ceiling fan basic model, fans: An approach based on using air following modifications as described in the testing cost in the first year would velocity sensors to calculate airflow, section III.E would impose no range from approximately $1,525 to such as the current DOE test procedure additional test burden compared to the $45,750 for small manufacturers of for ceiling fans, ENERGY STAR’s test current ENERGY STAR test procedure: HSSD ceiling fans. DOE expects this procedure, and CAN/CSA–C814–10, (7) Specifying that the vertical position cost to be lower in subsequent years and an approach based on using a load in relation to the air velocity sensors be because only new or redesigned ceiling cell to measure thrust, such as AMCA determined by the position of the lowest fan models would need to be tested. 230.
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In principle, either approach could be to average 30 hours per response, effect on the States, on the relationship used to measure the airflow efficiency of including the time for reviewing between the national government and all ceiling fans, but maintaining instructions, searching existing data the States, or on the distribution of consistency with industry practice sources, gathering and maintaining the power and responsibilities among the would minimize test burden for all data needed, and completing and various levels of government. EPCA ceiling fan manufacturers. Though a reviewing the collection of information. governs and prescribes Federal load-cell based approach appears to be Notwithstanding any other provision preemption of State regulations as to a potentially simpler method of of the law, no person is required to energy conservation for the products estimating airflow efficiency, in respond to, nor shall any person be that are the subject of this final rule. industry, ceiling fans less than or equal subject to a penalty for failure to comply States can petition DOE for exemption to 7 feet in diameter, have historically with, a collection of information subject from such preemption to the extent, and been tested according to the air-velocity to the requirements of the PRA, unless based on criteria, set forth in EPCA. (42 sensor based approach. Large-diameter that collection of information displays a U.S.C. 6297(d)) No further action is ceiling fans, on the other hand, have currently valid OMB Control Number. required by Executive Order 13132. historically been tested according to the D. Review Under the National F. Review Under Executive Order 12988 load-cell based approach. It also appears Environmental Policy Act of 1969 to be cost-prohibitive to scale up the air- When reviewing existing regulations velocity sensor based approach to the In this final rule, DOE amends its test or promulgating new regulations, large-diameter ceiling fans currently on procedure for ceiling fans to more section 3(a) of Executive Order 12988, the market given the number of sensors accurately measure the energy ‘‘Civil Justice Reform,’’ 61 FR 4729 (Feb. that would be required to cover ceiling consumption of these products. DOE 7, 1996), imposes on Federal agencies fans 24 feet in diameter and the cost of has determined that this rule falls into the general duty to adhere to the constructing an appropriate rotating a class of actions that are categorically following requirements: (1) Eliminate sensor arm. Therefore, DOE adopted the excluded from review under the drafting errors and ambiguity; (2) write less burdensome approach in this final National Environmental Policy Act of regulations to minimize litigation; (3) rule. 1969 (42 U.S.C. 4321 et seq.) and DOE’s provide a clear legal standard for DOE also adopted a number of other implementing regulations at 10 CFR part affected conduct rather than a general measures in this final rule that will 1021. Specifically, this rule amends an standard; and (4) promote simplification minimize impacts to small businesses: existing rule without affecting the and burden reduction. Section 3(b) of (1) Retaining the 15-minute warm-up amount, quality or distribution of Executive Order 12988 specifically time (see section III.C); (2) Eliminating energy usage, and, therefore, will not requires that Executive agencies make the test cylinder from the test setup for result in any environmental impacts. every reasonable effort to ensure that the HSSD ceiling fans (see section III.E.1); Thus, this rulemaking is covered by regulation: (1) Clearly specifies the (3) Mounting HSSD ceiling fans to the Categorical Exclusion A5 under 10 CFR preemptive effect, if any; (2) clearly real ceiling, rather than a false ceiling, part 1021, subpart D, which applies to specifies any effect on existing Federal for testing (see section III.E.6); (4) any rulemaking that interprets or law or regulation; (3) provides a clear Relaxing the allowable measurement amends an existing rule without legal standard for affected conduct tolerance for the air velocity sensors changing the environmental effect of while promoting simplification and used in testing HSSD ceiling fans (see that rule. Accordingly, neither an burden reduction; (4) specifies the section III.E.7); and (5) Relaxing the test environmental assessment nor an retroactive effect, if any; (5) adequately room temperature tolerance (see section environmental impact statement is defines key terms; and (6) addresses III.E.9). required. other important issues affecting clarity and general draftsmanship under any E. Review Under Executive Order 13132 C. Review Under the Paperwork guidelines issued by the Attorney Reduction Act of 1995 Executive Order 13132, ‘‘Federalism,’’ General. Section 3(c) of Executive Order Manufacturers of ceiling fans must 64 FR 43255 (August 4, 1999), imposes 12988 requires Executive agencies to certify to DOE that their products certain requirements on agencies review regulations in light of applicable comply with any applicable energy formulating and implementing policies standards in sections 3(a) and 3(b) to conservation standards. In certifying or regulations that preempt State law or determine whether they are met or it is compliance, manufacturers must first that have Federalism implications. The unreasonable to meet one or more of obtain test data for their products Executive Order requires agencies to them. DOE has completed the required according to the DOE test procedures, examine the constitutional and statutory review and determined that, to the including any amendments adopted for authority supporting any action that extent permitted by law, this final rule those test procedures on the date that would limit the policymaking discretion meets the relevant standards of compliance is required. DOE has of the States and to carefully assess the Executive Order 12988. established regulations for the necessity for such actions. The certification and recordkeeping Executive Order also requires agencies G. Review Under the Unfunded requirements for all covered consumer to have an accountable process to Mandates Reform Act of 1995 products and commercial equipment, ensure meaningful and timely input by Title II of the Unfunded Mandates including ceiling fans. See generally 10 State and local officials in the Reform Act of 1995 (UMRA) requires CFR part 429. The collection-of- development of regulatory policies that each Federal agency to assess the effects information requirement for the have Federalism implications. On of Federal regulatory actions on State, certification and recordkeeping is March 14, 2000, DOE published a local, and Tribal governments and the subject to review and approval by OMB statement of policy describing the private sector. Pub. L. 104–4, sec. 201 under the Paperwork Reduction Act intergovernmental consultation process (codified at 2 U.S.C. 1531). For a (PRA). This requirement has been it will follow in the development of regulatory action likely to result in a approved by OMB under OMB control such regulations. 65 FR 13735. DOE has rule that may cause the expenditure by number 1910–1400. Public reporting examined this final rule and determined State, local, and Tribal governments, in burden for the certification is estimated that it will not have a substantial direct the aggregate, or by the private sector of
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$100 million or more in any one year guidelines were published at 67 FR the Federal Trade Commission (FTC) (adjusted annually for inflation), section 8452 (Feb. 22, 2002), and DOE’s concerning the impact of the 202 of UMRA requires a Federal agency guidelines were published at 67 FR commercial or industry standards on to publish a written statement that 62446 (Oct. 7, 2002). DOE has reviewed competition. estimates the resulting costs, benefits, this final rule under the OMB and DOE The final rule incorporates testing and other effects on the national guidelines and has concluded that it is methods contained in the following economy. (2 U.S.C. 1532(a), (b)) The consistent with applicable policies in commercial standards: ANSI/AMCA UMRA also requires a Federal agency to those guidelines. Standard 230–15, ‘‘Air Movement and develop an effective process to permit Control Association Laboratory Methods K. Review Under Executive Order 13211 timely input by elected officers of State, of testing Air Circulating Fans for Rating local, and Tribal governments on a Executive Order 13211, ‘‘Actions and Certification’’ and IEC 62301:2011, proposed ‘‘significant intergovernmental Concerning Regulations That ‘‘Household Electrical Appliances— mandate,’’ and requires an agency plan Significantly Affect Energy Supply, Measurement of Standby Power.’’ The for giving notice and opportunity for Distribution, or Use,’’ 66 FR 28355 (May Department has evaluated these timely input to potentially affected 22, 2001), requires Federal agencies to standards and is unable to conclude small governments before establishing prepare and submit to OMB, a whether they fully comply with the any requirements that might Statement of Energy Effects for any requirements of section 32(b) of the significantly or uniquely affect small significant energy action. A ‘‘significant FEAA (i.e., whether they were governments. On March 18, 1997, DOE energy action’’ is defined as any action developed in a manner that fully published a statement of policy on its by an agency that promulgated or is provides for public participation, process for intergovernmental expected to lead to promulgation of a comment, and review.) DOE has consultation under UMRA. 62 FR final rule, and that: (1) Is a significant consulted with both the Attorney 12820; also available at http:// regulatory action under Executive Order General and the Chairman of the FTC energy.gov/gc/office-general-counsel. 12866, or any successor order; and (2) about the impact on competition of DOE examined this final rule according is likely to have a significant adverse using the methods contained in these to UMRA and its statement of policy effect on the supply, distribution, or use standards and has received no and determined these requirements do of energy; or (3) is designated by the comments objecting to their use. not apply because the rule contains Administrator of OIRA as a significant energy action. For any significant energy M. Description of Materials neither an intergovernmental mandate Incorporated by Reference nor a mandate that may result in the action, the agency must give a detailed expenditure of $100 million or more in statement of any adverse effects on In this final rule, DOE is incorporating any year. energy supply, distribution, or use if the by reference specific sections of the regulation is implemented, and of following industry standards: (1) ANSI/ H. Review Under the Treasury and reasonable alternatives to the action and AMCA Standard 230–15 (‘‘AMCA 230– General Government Appropriations their expected benefits on energy 15’’), ‘‘Air Movement and Control Act, 1999 supply, distribution, and use. Association Laboratory Methods of Section 654 of the Treasury and This regulatory action to amend the Testing Air Circulating Fans for Rating General Government Appropriations test procedure for measuring the energy and Certification,’’ and (2) IEC 62301–U Act, 1999 (Pub. L. 105–277) requires efficiency of ceiling fans is not a (Edition 2.0, 2011–01), ‘‘Household Federal agencies to issue a Family significant regulatory action under Electrical Appliances—Measurement of Policymaking Assessment for any rule Executive Order 12866. Moreover, it Standby Power.’’ that may affect family well-being. This would not have a significant adverse AMCA 230–15 is an industry- rule would not have any impact on the effect on the supply, distribution, or use standard test procedure for measuring autonomy or integrity of the family as of energy, nor has it been designated as the airflow efficiency of commercial and an institution. Accordingly, DOE has a significant energy action by the industrial ceiling fans. The test concluded that it is not necessary to Administrator of OIRA. Therefore, it is procedure in this final rule references prepare a Family Policymaking not a significant energy action, and, Section 3 through Section 9 of AMCA Assessment. accordingly, DOE has not prepared a 230–15 (except sections 5.1 and 9.5 and Statement of Energy Effects. Test Figures 2 and 3), which specify the I. Review Under Executive Order 12630 test apparatus, general instructions, L. Review Under Section 32 of the DOE has determined, under Executive procedure, and calculations for Federal Energy Administration Act of Order 12630, ‘‘Governmental Actions measuring airflow efficiency. AMCA 1974 and Interference with Constitutionally 230–15 is available from the American Protected Property Rights’’ 53 FR 8859 Under section 301 of the Department National Standards Institute, 25 W. 43rd (March 18, 1988), that this regulation of Energy Organization Act (Pub. L. 95– Street, 4th Floor, New York, NY 10036, will not result in any takings that might 91; 42 U.S.C. 7101), DOE must comply 212–642–4900, or www.ansi.org. require compensation under the Fifth with section 32 of the Federal Energy IEC 62301–U is an industry-standard Amendment to the U.S. Constitution. Administration Act of 1974, as amended test procedure for measuring the by the Federal Energy Administration standby power draw of electrical J. Review Under Treasury and General Authorization Act of 1977. (15 U.S.C. appliances (including ceiling fans). The Government Appropriations Act, 2001 788; FEAA) Section 32 essentially test procedure in this final rule Section 515 of the Treasury and provides in relevant part that, where a references Section 4.3.1 through Section General Government Appropriations proposed rule authorizes or requires use 5.3.2 of IEC 62301–U (except sections Act, 2001 (44 U.S.C. 3516 note) provides of commercial standards, the notice of 5.1 and 5.2), which specify the test for agencies to review most proposed rulemaking must inform the apparatus, general instructions, disseminations of information to the public of the use and background of procedure and calculations for public under guidelines established by such standards. In addition, section measuring standby power consumption. each agency pursuant to general 32(c) requires DOE to consult with the Copies of IEC 62301–U are available guidelines issued by OMB. OMB’s Attorney General and the Chairman of from the International Electrotechnical
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Commission, 3, rue de Varembe´, P.O. (i) Any represented value of the definitions, see appendix U to this Box 131, CH–1211 Geneva 20– efficiency or airflow is less than or equal subpart. Switzerland, or https://webstore.iec.ch. to the lower of: * * * * * (A) The mean of the sample, where: ■ N. Congressional Notification 5. Section 430.3 is amended by adding paragraphs (b)(3) and (p)(6) to read as As required by 5 U.S.C. 801, DOE will follows: report to Congress on the promulgation of this rule before its effective date. The § 430.3 Materials incorporated by report will state that it has been reference. determined that the rule is not a ‘‘major And x¯ is the sample mean; n is the * * * * * th rule’’ as defined by 5 U.S.C. 804(2). number of samples; and xi is the i (b) * * * sample; or (3) ANSI/AMCA Standard 230–15 V. Approval of the Office of the (B) The lower 90 percent confidence (‘‘AMCA 230–15’’), ‘‘Laboratory Secretary limit (LCL) of the true mean divided by Methods of Testing Air Circulating Fans The Secretary of Energy has approved 0.9, where: for Rating and Certification,’’ ANSI publication of this final rule. approved October 16, 2015, IBR approved for appendix U to this List of Subjects subpart, as follows: 10 CFR Part 429 And x¯ is the sample mean; s is the (i) Section 3—Units of Measurement; Confidential business information, sample standard deviation; n is the (ii) Section 4—Symbols and Subscripts; (including Table 1— Energy conservation, Household number of samples; and t0.90 is the t appliances, Imports, Reporting and statistic for a 90% one-tailed confidence Symbols and Subscripts); (iii) Section 5—Definitions (except recordkeeping requirements. interval with n¥1 degrees of freedom (from appendix A to subpart B); and 5.1); (iv) Section 6—Instruments and 10 CFR Part 430 (ii) Any represented value of the Section Methods of Measurement; Administrative practice and wattage is greater than or equal to the (v) Section 7—Equipment and Setups procedure, Confidential business higher of: (except the last 2 bulleted items in 7.1— information, Energy conservation, (A) The mean of the sample, where: Household appliances, Imports, Allowable test setups); (vi) Section 8—Observations and Incorporation by reference, Conduct of Test; Intergovernmental relations, Small (vii) Section 9—Calculations (except businesses. 9.5); and Issued in Washington, DC, on July 6, 2016. And x¯ is the sample mean; n is the (viii) Test Figure 1—Vertical Airflow Kathleen B. Hogan, th Setup with Load Cell (Ceiling Fans). number of samples; and xi is the i Deputy Assistant Secretary for Energy sample; or * * * * * Efficiency, Energy Efficiency and Renewable (B) The upper 95 percent confidence (p) * * * Energy. limit (UCL) of the true mean divided by (6) IEC 62301 (‘‘IEC 62301–U’’), For the reasons stated in the 1.1, where: Household electrical appliances— preamble, DOE amends parts 429 and Measurement of standby power, 430 of chapter II, subchapter D of Title (Edition 2.0, 2011–01), IBR approved for 10, Code of Federal Regulations, as set appendix U to this subpart, as follows: forth below: (i) Section 4.3—General conditions for And x¯ is the sample mean; s is the measurements: Power supply: Section PART 429—CERTIFICATION, sample standard deviation; n is the 4.3.1—Supply voltage and frequency COMPLIANCE, AND ENFORCEMENT number of samples; and t0.95 is the t (first paragraph only), FOR CONSUMER PRODUCTS AND statistic for a 95% one-tailed confidence (ii) Section 4.3—General conditions ¥ COMMERCIAL AND INDUSTRIAL interval with n 1 degrees of freedom for measurements: Power supply: EQUIPMENT (from appendix A to this subpart). Section 4.3.2—Supply voltage * * * * * waveform; ■ 1. The authority citation for part 429 (iii) Section 4.4—General conditions continues to read as follows: PART 430—ENERGY CONSERVATION for measurements: Power measuring Authority: 42 U.S.C. 6291–6317. PROGRAM FOR CONSUMER instruments; PRODUCTS ■ 2. Section 429.32 is amended by (iv) Section 5.3—Measurements: Procedure: Section 5.3.1—General revising paragraph (a) to read as follows: ■ 3. The authority citation for part 430 (except the last bulleted item), and § 429.32 Ceiling fans. continues to read as follows: (v) Section 5.3—Measurements: (a) Determination of represented Authority: 42 U.S.C. 6291–6309; 28 U.S.C. Procedure: Section 5.3.2—Sampling value. Manufacturers must determine 2461 note. method (first two paragraphs and Note the represented value, which includes ■ 4. Section 430.2 is amended by 1). the certified rating, for each basic model revising the definition for ‘‘ceiling fan’’ * * * * * of ceiling fan by testing, in conjunction to read as follows: ■ 6. Section 430.23 is amended by with the following sampling provisions: § 430.2 Definitions. revising paragraph (w) to read as (1) The requirements of § 429.11 are follows: applicable to ceiling fans; and * * * * * (2) For each basic model of ceiling fan Ceiling fan means a nonportable § 430.23 Test procedures for the selected for testing, a sample of device that is suspended from a ceiling measurement of energy and water sufficient size must be randomly for circulating air via the rotation of fan consumption. selected and tested to ensure that— blades. For all other ceiling fan-related * * * * *
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(w) Ceiling fans. Measure the manufacturers of ceiling fans, as specified in more motors that are located outside of the efficiency of a ceiling fan, expressed in Section 2 of this appendix, must make any fan head. cubic feet per minute per watt (CFM/W), representations with respect to energy use or 1.7. Blade span means the diameter of the in accordance with appendix U to this efficiency in accordance with the results of largest circle swept by any part of the fan testing pursuant to this appendix. subpart. blade assembly, including any blade 1. Definitions: attachments. * * * * * 1.1. 20% speed means the ceiling fan speed 1.8. Ceiling fan efficiency means the ratio ■ at which the blade RPM are measured to be 7. Appendix U to subpart B of part of the total airflow to the total power 430 is added to read as follows: 20% of the blade RPM measured at high speed. consumption, in units of cubic feet per Appendix U To Subpart B OF Part 1.2. 40% speed means the ceiling fan speed minute per watt (CFM/W). 430—Uniform Test Method for at which the blade RPM are measured to be 1.9. Centrifugal ceiling fan means a ceiling Measuring the Energy Consumption of 40% of the blade RPM measured at high fan for which the primary airflow direction Ceiling Fans speed. is in the same plane as the rotation of the fan 1.3. 60% speed means the ceiling fan speed blades. Prior to January 23, 2017, manufacturers at which the blade RPM are measured to be 1.10. High speed means the highest must make any representations with respect 60% of the blade RPM measured at high available ceiling fan speed, i.e., the fan speed to the energy use or efficiency of ceiling fans speed. corresponding to the maximum blade as specified in Section 2 of this appendix 1.4. 80% speed means the ceiling fan speed revolutions per minute (RPM). at which the blade RPM are measured to be (other than hugger ceiling fans, multi-mount 1.11. High-speed small-diameter ceiling ceiling fans in the hugger configuration, and 80% of the blade RPM measured at high fan means a small-diameter ceiling fan that large-diameter ceiling fans) in accordance speed. with the results of testing pursuant either to 1.5. Airflow means the rate of air is not a very-small-diameter ceiling fan, this appendix, or to the applicable test movement at a specific fan-speed setting highly-decorative ceiling fan or belt-driven requirements set forth in 10 CFR parts 429 expressed in cubic feet per minute (CFM). ceiling fan and that has a blade thickness of and 430, as they appeared in the 10 CFR 1.6. Belt-driven ceiling fan means a ceiling less than 3.2 mm at the edge or a maximum parts 200 to 499 edition revised as of January fan with a series of one or more fan heads, tip speed greater than the applicable limit 1, 2016. On or after January 23, 2017, each driven by a belt connected to one or specified in the table in this definition.
HIGH-SPEED SMALL-DIAMETER CEILING FAN BLADE AND TIP SPEED CRITERIA
Thickness (t) of edges of blades Tip speed threshold Airflow direction feet per Mm inch m/s minute
Downward-only ...... 4.8 > t ≥ 3.2 3/16 > t ≥ 1/8 16.3 3,200 Downward-only ...... t ≥ 4.8 t ≥ 3/16 20.3 4,000 Reversible ...... 4.8 > t ≥ 3.2 3/16 > t ≥ 1/8 12.2 2,400 Reversible ...... t ≥ 4.8 t ≥ 3/16 16.3 3,200
1.12. Highly-decorative ceiling fan means a which the lowest point on the fan blades is corresponding to the minimum, non-zero, ceiling with a maximum rotational speed of less than or equal to 10 inches from the blade RPM. 90 RPM and less than 1,840 CFM airflow at ceiling. 1.16. Low-speed small-diameter ceiling fan high speed, as determined by sections 3 and 1.14. Large-diameter ceiling fan means a means a small-diameter ceiling fan that has 4 of this appendix. ceiling fan that is greater than seven feet in a blade thickness greater than or equal to 3.2 1.13. Hugger ceiling fan means a low-speed small-diameter ceiling fan that is not a very- diameter. mm at the edge and a maximum tip speed small-diameter ceiling fan, highly-decorative 1.15. Low speed means the lowest available less than or equal to the applicable limit ceiling fan or belt-driven ceiling fan; for ceiling fan speed, i.e., the fan speed specified in the table in this definition.
LOW-SPEED SMALL-DIAMETER CEILING FAN BLADE AND TIP SPEED CRITERIA
Thickness (t) of edges of blades Tip speed threshold Airflow direction feet per Mm inch m/s minute
Reversible ...... 4.8 > t ≥ 3.2 3/16 > t ≥ 1/8 12.2 2,400 Reversible ...... t ≥ 4.8 t ≥ 3/16 16.3 3,200
1.17. Multi-head ceiling fan means a means by which to disable the oscillating all tested speeds. For multi-head fans, this ceiling fan with more than one fan head, i.e., function separate from the fan blade rotation. includes the airflow from all fan heads. more than one set of rotating fan blades. 1.20. Small-diameter ceiling fan means a 1.23. Very-small-diameter ceiling fan 1.18. Multi-mount ceiling fan means a low- ceiling fan that is less than or equal to seven means a small-diameter ceiling fan that is not speed small-diameter ceiling fan that can be feet in diameter. a highly-decorative ceiling fan or belt-driven mounted in the configurations associated 1.21. Standard ceiling fan means a low- ceiling fan; and has one or more fan heads, with both the standard and hugger ceiling speed small-diameter ceiling fan that is not each of which has a blade span of 18 inches fans. a very-small-diameter ceiling fan, highly- or less. 1.19. Oscillating ceiling fan means a ceiling decorative ceiling fan or belt-driven ceiling 2. Scope: fan containing one or more fan heads for fan; for which the lowest point on fan blades The provisions in this appendix apply to which the axis of rotation of the fan blades is greater than 10 inches from the ceiling. ceiling fans except: cannot remain in a fixed position relative to 1.22. Total airflow means the sum of the (1) Ceiling fans where the plane of rotation the ceiling. Such fans have no inherent product of airflow and hours of operation at of a ceiling fan’s blades is not less than or
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equal to 45 degrees from horizontal, or specified in section 3) of an individual fan (1) Make sure the transformer power is off. cannot be adjusted based on the head, if all fan heads are the same size. If the Hang the ceiling fan to be tested directly from manufacturer’s specifications to be less than fan heads are of varying sizes, the effective the ceiling, according to the manufacturer’s or equal to 45 degrees from horizontal; blade span is the blade span (as specified in installation instructions. Hang all non-multi- (2) Centrifugal ceiling fans; section 3) of the largest fan head. mount ceiling fans in the fan configuration (3) Belt-driven ceiling fans; and 3.2. Test apparatus for low-speed small- that minimizes the distance between the (4) Oscillating ceiling fans. diameter and high-speed small-diameter 3. General Instructions, Test Apparatus, ceiling fans: All instruments are to have ceiling and the lowest point of the fan blades. and Test Measurement: accuracies within ±1% of reading, except for Hang and test multi-mount fans in two The test apparatus and test measurement the air velocity sensors, which must have configurations: The configuration associated used to determine energy performance accuracies within ±5% of reading or 2 feet with the definitions of a standard fan that depend on the ceiling fan’s blade span. For per minute (fpm), whichever is greater. minimizes the distance between the ceiling each tested ceiling fan, measure the lateral Equipment is to be calibrated at least once a and the lowest point of the fan blades and the distance from the center of the axis of year to compensate for variation over time. configuration associated with the definition rotation of the fan blades to the furthest fan 3.2.1. Air Delivery Room Requirements of a hugger fan that minimizes the distance blade edge from the center of the axis of (1) The air delivery room dimensions are between the ceiling and the lowest point of rotation, and multiply this distance by two. to be 20 ± 0.75 feet x 20 ± 0.75 feet with an ± the fan blades. The blade span for a basic model of ceiling 11 0.75 foot-high ceiling. The control room (2) Connect wires as directed by fan is then calculated as the arithmetic mean shall be constructed external to the air manufacturer’s wiring instructions. Note: of this distance across each ceiling fan in the delivery room. sample, rounded to the nearest inch. (2) The ceiling shall be constructed of sheet Assemble fan prior to the test; lab personnel 3.1. General instructions. rock or stainless plate. The walls must be of must follow the instructions provided with 3.1.1. Record measurements at the adequate thickness to maintain the specified the fan by the fan manufacturer. Balance the resolution of the test instrumentation. Round temperature and humidity during the test. fan blade assembly in accordance with the off calculations to the number of significant The paint used on the walls, as well as the manufacturer’s instructions to avoid digits present at the resolution of the test paint used on the ceiling material, must be excessive vibration of the motor assembly (at instrumentation, except for blade span, of a type that minimizes absorption of any speed) during operation. which is rounded to the nearest inch. Round humidity and that keeps the temperature of (3) With the ceiling fan installed, adjust the the final ceiling fan efficiency value to the the room constant during the test (e.g., oil- height of the air velocity sensors to ensure nearest whole number as follows: based paint). the vertical distance between the lowest 3.1.1.1. A fractional number at or above the (3) The room must not have any ventilation point on the ceiling fan blades and the air midpoint between the two consecutive whole other than an air conditioning and return velocity sensors is 43 inches. numbers shall be rounded up to the higher system used to control the temperature and (4) Either a rotating sensor arm or four of the two whole numbers; or humidity of the room. The construction of 3.1.1.2. A fractional number below the the room must ensure consistent air fixed sensor arms can be used to take airflow midpoint between the two consecutive whole circulation patterns within the room. Vents measurements along four axes, labeled A–D. numbers shall be rounded down to the lower must have electronically-operated damper Axes A, B, C, and D are at 0, 90, 180, and of the two whole numbers. doors controllable from a switch outside of 270 degree positions. Axes A–D must be 3.1.2. For multi-head ceiling fans, the the testing room. perpendicular to the four walls of the room. effective blade span is the blade span (as 3.2.2. Equipment Set-Up See Figure 1 of this appendix.
(5) Minimize the amount of exposed with the first sensor at the point where the ceiling fan being tested. The experimental wiring. Store all sensor lead wires under the four axes intersect. Do not touch the actual set-up is shown in Figure 2 of this appendix. floor, if possible. sensor prior to testing. Use enough sensors to (6) Place the sensors at intervals of 4 ± record air delivery within a circle 8 inches 0.0625 inches along a sensor arm, starting larger in diameter than the blade span of the
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(7) Table 1 of this appendix shows the instruction or installation manual must be cannot be achieved, orient the ceiling fan (or appropriate number of sensors needed per completed prior to conducting testing. fan head, if the ceiling fan is a multi-head each of four axes (including the first sensor 3.2.3. Multi-Head Ceiling Fan Test Set-Up fan) such that any remaining tilt is aligned at the intersection of the axes) for common Hang a multi-headed ceiling fan from the along one of the four sensor axes. Instead of fan sizes. ceiling such that one of the ceiling fan heads measuring the air velocity for only those is centered directly over sensor 1 (i.e., at the sensors directly beneath the ceiling fan, the TABLE 1 TO APPENDIX U TO SUBPART intersection of axes A, B, C, and D). The air velocity is to be measured at all sensors distance between the lowest point any of the B OF PART 430: SENSOR SELEC- along that axis, as well as the axis oriented fan blades of the centered fan head can reach 180 degrees with respect to that axis. For TION REQUIREMENTS and the air velocity sensors is to be such that example, if the tilt is oriented along axis A, it is the same as for all other small-diameter air velocity measurements are to be taken for Fan blade Number ceiling fans (see Figure 2 of this appendix). all sensors along the A–C axis. No span * If the multi-head ceiling fan has an (inches) of sensors measurements would need to be taken along oscillating function (i.e., the fan heads the B–D axis in this case. All other aspects change their axis of rotation relative to the of test set-up remain unchanged from 36 6 ceiling) that can be switched off, switch it off sections 3 through 3.2.2. 42 7 prior to taking airflow measurements. If any 3.3. Active mode test measurement for low- 44 7 multi-head fan does not come with the blades 48 7 preinstalled, install fan blades only on the speed small-diameter and high-speed small- 52 8 fan head that will be directly centered over diameter ceiling fans. 54 8 the intersection of the sensor axes. (Even if 3.3.1. Test conditions to be followed when 56 8 the fan heads in a multi-head ceiling fan testing: 60 9 would typically oscillate when the blades are (1) Maintain the room temperature at 70 ± 72 10 installed on all fan heads, the ceiling fan is degrees 5 degrees Fahrenheit and the room ± 84 12 subject to this test procedure if the centered humidity at 50% 5% relative humidity fan head does not oscillate when it is the during the entire test process. * The fan sizes listed are illustrative and do only fan head with the blades installed.) If (2) If present, the ceiling fan light fixture not restrict which ceiling fan sizes can be is to be installed but turned off during tested. the fan blades are preinstalled on all fan heads, measure airflow in accordance with testing. (8) Install an RPM (revolutions per minute) section 3.3 except only turn on the centered (3) If present, any heater is to be installed meter, or tachometer, to measure RPM of the fan head. Measure the power consumption but turned off during testing. ceiling fan blades. measurements are to be made separately, (4) If present, turn off any oscillating (9) Use an RMS sensor capable of with the fan blades installed on all fan heads function causing the axis of rotation of the measuring power with an accuracy of ±1% to and with any oscillating function, if present, fan head(s) to change relative to the ceiling measure ceiling fan power consumption. If switched on. during operation prior to taking airflow the ceiling fan operates on multi-phase 3.2.4. Test Set-Up for Ceiling Fans with measurements. Turn on any oscillating power input, measure the active (real) power Airflow Not Directly Downward function prior to taking power in all phases simultaneously. Measure test For ceiling fans where the airflow is not measurements. voltage within 6’’ of the connection supplied directly downward, adjust the ceiling fan (5) The supply voltage shall be: with the ceiling fan. head such that the airflow is as vertical as (i) 120 V if the ceiling fan’s minimum rated (10) Complete any conditioning possible prior to testing. For ceiling fans voltage is 120 V or the lowest rated voltage instructions provided in the ceiling fan’s where a fully vertical orientation of airflow range contains 120 V,
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(ii) 240 V if the ceiling fan’s minimum the 0 degree position by remotely controlling all phases simultaneously at each speed rated voltage is 240 V or the lowest rated the antenna rotator. continuously for 100 seconds with all fan voltage range contains 240 V, or Step 2: Set software up to read and record heads turned on, and record the average (iii) The ceiling fan’s minimum rated air velocity, expressed in feet per minute value at each speed in watts (W). voltage (if a voltage range is not given) or the (FPM) in 1 second intervals. (Temperature For ceiling fans with an oscillating mean of the lowest rated voltage range, in all does not need to be recorded in 1 second function, measure active (real) power other cases. The test voltage shall not vary by intervals.) Record current barometric consumption in all phases simultaneously at more than ±1% during the tests. pressure. each speed continuously for 100 seconds (6) Test ceiling fans rated for operation Step 3: Allow test fan to run 15 minutes with the oscillating function turned on. with only a single- or multi-phase power at rated voltage and at high speed if the Record the average value of the power supply with single- or multi-phase ceiling fan is an HSSD ceiling fan. If the measurement in watts (W). ceiling fan is an LSSD ceiling fan, allow the electricity, respectively. Measure active (real) For both multi-head ceiling fans and fans test fan to run 15 minutes at the rated voltage power in all phases continuously when with an oscillating function, repeat power and at low speed. Turn off all forced-air testing. Test ceiling fans capable of operating consumption measurement until stable with single- and multi-phase electricity with environmental conditioning equipment entering the chamber (e.g., air conditioning), power measurements are achieved. single-phase electricity. DOE will allow 3.4. Test apparatus for large-diameter manufacturers of ceiling fans capable of close all doors and vents, and wait an additional 3 minutes prior to starting test ceiling fans: operating with single- and multi-phase The test apparatus and instructions for electricity to test such fans with multi-phase session. Step 4: Begin recording readings. Take 100 testing large-diameter ceiling fans must power and make representations of efficiency conform to the requirements specified in associated with both single and multi-phase airflow velocity readings (100 seconds run- time) and save these data. If using a rotating sections 3 through 7 of AMCA 230–15 electricity if a manufacturer desires to do so, sensor arm, this is axis A. For all fans except (incorporated by reference, see § 430.3), with but the test results in the multi-phase multi-head fans and fans capable of the following modifications: configuration will not be valid to assess oscillating, measure power during the 3.4.1. The test procedure is applicable to compliance with any amended energy interval that air velocity measurements are large-diameter ceiling fans up to 24 feet in conservation standard. taken. Record the average value of the power diameter. (7) Conduct the test with the fan connected measurement in watts (W). 3.4.2. A ‘‘ceiling fan’’ is defined as in 10 to a supply circuit at the rated frequency. Step 5: Similarly, take 100 air velocity (8) Measure power input at a point that CFR 430.2. readings (100 seconds run-time) for Axes B, 3.4.3. The supply voltage shall be (1) 120 includes all power-consuming components of C, and D; save these data as well. Measure the ceiling fan (but without any attached V if the ceiling fan’s minimum rated voltage power as described in Step 4. If using four is 120 V or the lowest rated voltage range light kit or heater energized). fixed sensor arms, take the readings for all 3.3.2. Airflow and Power Consumption contains 120 V, (2) 240 V if the ceiling fan’s sensor arms simultaneously. minimum rated voltage is 240 V or the lowest Testing Procedure: Step 6: Repeat Steps 4 and 5 until stable Measure the airflow (CFM) and power rated voltage range contains 240 V, or (3) the measurements are achieved. ceiling fan’s minimum rated voltage (if a consumption (W) for HSSD ceiling fans until Step 7: Repeat steps 1 through 6 above on voltage range is not given) or the mean of the stable measurements are achieved, measuring high fan speed for LSSD ceiling fans. Note: lowest rated voltage range, in all other cases. at high speed only. Measure the airflow and Ensure that temperature and humidity 3.4.4. Test ceiling fans rated for operation power consumption for LSSD ceiling fans readings are maintained within the required with only a single- or multi-phase power until stable measurements are achieved, tolerances for the duration of the test (all measuring first at low speed and then at high tested speeds). Forced-air environmental supply with single- or multi-phase speed. Airflow and power consumption conditioning equipment may be used and electricity, respectively. Test ceiling fans measurements are considered stable if: doors and vents may be opened between test capable of operating with single- and multi- (1) The average air velocity for all axes for sessions to maintain environmental phase electricity with multi-phase electricity. each sensor varies by less than 5% compared conditions. DOE will allow manufacturers of ceiling fans to the average air velocity measured for that Step 8: If testing a multi-mount ceiling fan, capable of operating with single- and multi- same sensor in a successive set of air velocity repeat steps 1 through 7 with the ceiling fan phase electricity to test such fans with single- measurements, and in the ceiling fan configuration (associated phase power and make representations of (2) Average power consumption varies by with either hugger or standard ceiling fans) efficiency associated with both single and less than 1% in a successive set of power not already tested. multi-phase electricity if a manufacturer consumption measurements. These stability If a multi-head ceiling fan includes more desires to do so, but the test results in the criteria are applied differently to ceiling fans than one category of ceiling fan head, then single-phase configuration will not be valid with airflow not directly downward. See test at least one of each unique category. A to assess compliance with any amended section 4.1.2 of this appendix. fan head with different construction that energy conservation standard. Step 1: Set the first sensor arm (if using could affect air movement or power 3.5. Active mode test measurement for four fixed arms) or single sensor arm (if using consumption, such as housing, blade pitch, large-diameter ceiling fans: a single rotating arm) to the 0 degree Position or motor, would constitute a different (1) Calculate the airflow (CFM) and (Axis A). If necessary, use a marking as category of fan head. measure the active (real) power consumption reference. If using a single rotating arm, Step 9: For multi-head ceiling fans, (W) in all phases simultaneously for ceiling adjust the sensor arm alignment until it is at measure active (real) power consumption in fans at the speeds specified in Table 2.
TABLE 2 TO APPENDIX U TO SUBPART B OF PART 430—SPEEDS TO BE TESTED FOR LARGE-DIAMETER CEILING FANS
Efficiency metric Available speeds Number of speeds to test Which speeds to test weighting for each speed ** (%)
1 ...... All ...... All ...... 100 2 ...... All ...... All ...... 50 3 ...... All ...... All ...... 33 4 ...... All ...... All ...... 25 5 ...... All ...... All ...... 20 6+ (discrete) ...... 5 ...... 5 fastest speeds ...... 20
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TABLE 2 TO APPENDIX U TO SUBPART B OF PART 430—SPEEDS TO BE TESTED FOR LARGE-DIAMETER CEILING FANS— Continued
Efficiency metric Available speeds Number of speeds to test Which speeds to test weighting for each speed ** (%)
Infinite (continuous) * ...... 5 ...... High speed ...... 20 80% speed 60% speed 40% speed 20% speed * This corresponds to a ceiling fan, such as a ceiling fan with a variable-frequency drive (VFD) that operates over a continuous (rather than dis- crete) range of speeds. ** All tested speeds are to be weighted equally. Therefore, the weighting shown here for a ceiling fan with three available speeds is approximate.
(2) When testing at speeds other than high b Continuous functions, including power method, where the power measuring speed (i.e., X% speed where X is 80, 60, 40, information or status displays (including instrument can record true average power or 20) for ceiling fans that can operate over clocks), or sensor-based functions. over an operator selected period, the average an infinite number of speeds (e.g., ceiling (2) Measure standby power consumption power is taken directly from the power fans with VFDs), ensure the average after completion of active mode testing and measuring instrument. For the accumulated measured RPM is within the greater of 1% of after the active mode functionality has been energy method, determine the average power the average RPM at high speed or 1 RPM. For switched off (i.e., the rotation of the ceiling by dividing the measured energy by the time example, if the average measured RPM at fan blades is no longer energized). The for the monitoring period. Use units of watt- high speed is 50 RPM, for testing at 80% ceiling fan must remain connected to the hours and hours for both methods to speed the average measured RPM should be main power supply and be in the same determine average power in watts. between 39 RPM and 41 RPM. If the average configuration as in active mode (i.e., any 4. Calculation of Ceiling Fan Efficiency measured RPM falls outside of this tolerance, ceiling fan light fixture should still be From the Test Results: adjust the ceiling fan speed and repeat the attached). Measure standby power (1) The efficacy of a ceiling fan is the test. Calculate the airflow and measure the consumption according to sections 4 and ceiling fan efficiency (as defined in section 1 active (real) power consumption in all phases 5.3.1 through 5.3.2 of IEC 62301–U of this appendix). Calculate two ceiling fan simultaneously in accordance with the test (incorporated by reference, see § 430.3) with efficiencies for multi-mount ceiling fans: One requirements specified in sections 8 and 9, the following modifications: efficiency corresponds to the ceiling fan AMCA 230–15 (incorporated by reference, 3.6.1. Allow 3 minutes between switching see § 430.3), with the following off active mode functionality and beginning mounted in the configuration associated with modifications: the standby power test. (No additional time the definition of a hugger ceiling fan, and the 3.5.1. Measure active (real) power before measurement is required.) other efficiency corresponds to the ceiling consumption in all phases simultaneously at 3.6.2. Simultaneously in all phases, fan mounted in the configuration associated a point that includes all power-consuming measure active (real) power consumption with the definition of a standard ceiling fan. components of the ceiling fan (but without continuously for 100 seconds, and record the (2) Calculate fan efficiency using the any attached light kit or heater energized). average value of the standby power average of both sets of airflow and power 3.5.2. Measure active (real) power measurement in watts (W). measurements from the successive sets of consumption in all phases simultaneously 3.6.3. Determine power consumption measurements that meet the stability criteria. continuously at the rated voltage that according to section 5.3.2 of IEC 62301–U, or (3) To calculate the measured airflow for represents normal operation over the time by using the following average reading HSSD and LSSD ceiling fans, multiply the period for which the load differential test is method. Note that a shorter measurement average air velocity measurement at each conducted. period may be possible using the sample sensor from section 3.3 of this appendix (for 3.6. Test measurement for standby power method in section 5.3.2 of IEC 62301–U. high speed for HSSD ceiling fans, and for consumption. (1) Connect the product to the power high and low speeds for LSSD ceiling fans) (1) Measure standby power consumption if supply and power measuring instrument. with the sensor’s effective area (explained the ceiling fan offers one or more of the (2) Select the mode to be measured (which below), and then sum the products to obtain following user-oriented or protective may require a sequence of operations and the overall measured airflow at the tested functions: could require waiting for the product to speed. Using the airflow and the power bbo The ability to facilitate the automatically enter the desired mode) and consumption measurements from sections activation or deactivation of other functions then monitor the power. 3.3 and 3.5 of this appendix (for all tested (including active mode) by remote switch (3) Calculate the average power using settings for large-diameter ceiling fans) (including remote control), internal sensor, or either the average power method or the calculate the efficiency for any ceiling fan as timer. accumulated energy method. For the average follows:
Where: Wi = power consumption at speed i, (4) Table 3 of this appendix specifies CFMi = airflow at speed i, OHSb = operating hours in standby mode, and the daily hours of operation to be used OHi = operating hours at speed i, WSb = power consumption in standby mode. in calculating ceiling fan efficiency:
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TABLE 3 TO APPENDIX U TO SUBPART B OF PART 430—DAILY OPERATING HOURS FOR CALCULATING CEILING FAN EFFICIENCY
No standby With standby
Daily Operating Hours for LSSD Ceiling Fans
High Speed ...... 3.4 3.4 Low Speed ...... 3.0 3.0 Standby Mode ...... 0.0 17.6 Off Mode ...... 17.6 0.0
Daily Operating Hours for HSSD Ceiling Fans
High Speed ...... 12.0 12.0 Standby Mode ...... 0.0 12.0 Off Mode ...... 12.0 0.0
Daily Operating Hours for Large-Diameter Ceiling Fans
Active Mode * ...... 12.0 12.0 Standby Mode ...... 0.0 12.0 Off Mode ...... 12.0 0.0 * The active mode hours must be apportioned equally across the number of active mode speeds tested (e.g., if four speeds are tested, 25% of the active mode hours are apportioned to each speed).
(5) Calculate the effective area ceiling fans with the following ceiling fan, the effective width of the corresponding to each sensor used in equations: circle is 2 inches, and the effective area the test method for small-diameter (6) For sensor 1, the sensor located is: directly underneath the center of the
(7) For the sensors between sensor 1 measurement, the effective area has a distance d, in inches, from sensor 1, and the last sensor used in the width of 4 inches. If a sensor is a then the effective area is:
(8) For the last sensor, the width of a circle 8 inches larger in diameter than inches of the end of the ceiling fan the effective area depends on the the ceiling fan blade span (as specified blades is included in the airflow horizontal displacement between the in section 3 of this appendix). calculation, the effective width of the last sensor and the point on the ceiling (9) Therefore, for example, for a 42- circle corresponding to the last sensor fan blades furthest radially from the inch ceiling fan, the last sensor is 3 would be 3 inches. The calculation for center of the fan. The total area included inches beyond the end of the ceiling fan the effective area corresponding to the in an airflow calculation is the area of blades. Because only the area within 4 last sensor would then be:
(10) For a 46-inch ceiling fan, the have a width of 5 inches, and the effective area of the last sensor would effective area would be:
4.1.1. Ceiling fan efficiency included in the ceiling fan (a single measured power consumption with all calculations for multi-head ceiling fans airflow measurement can be applied to fan heads on. Using the airflow and To determine the airflow at a given identical fan heads, but at least one of power consumption measurements from speed for a multi-head ceiling fan, sum each unique fan head must be tested). section 3.3 of this appendix, calculate the measured airflow for each fan head The power consumption is the
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ceiling fan efficiency for a multi-head ceiling fan as follows:
Where: the axis that the ceiling fan tilt is velocity at A axis sensors 3 and 5 as a CFMi = sum of airflow at a given speed for directed in (and along the axis that is substitute for the average air velocity at each head, 180 degrees from the first axis). For sensor 2, take the average of the air OHi = operating hours at a given speed, example, a 42-inch fan tilted toward velocity at A axis sensors 2 and 6 as a Wi = total power consumption at a given axis A may create the pattern of air substitute for the average air velocity at speed, velocity shown in Figure 3 of this sensor 3, etc. Lastly, take the average of OHSb = operating hours in standby mode, and W = power consumption in standby mode. appendix. As shown in Table 1 of this the air velocities at A axis sensor 10 and Sb appendix, a 42-inch fan would normally C axis sensor 4 as a substitute for the 4.1.2. Ceiling fan efficiency require 7 active sensors. However average air velocity at sensor 7. Stability calculations for ceiling fans with airflow because the fan is not directed criteria apply after these substitutions. not directly downward downward, all sensors must record data. For example, air velocity stability at Using a set of sensors that cover the In this case, because the set of sensors sensor 7 are determined based on the same diameter as if the airflow were corresponding to maximum air velocity average of average air velocity at A axis directly downward, the airflow at each are centered 3 sensor positions away sensor 10 and C axis sensor 4 in speed should be calculated based on the from the sensor 1 along the A axis, successive measurements. Any air continuous set of sensors with the substitute the air velocity at A axis velocity measurements made along the largest air velocity measurements. This sensor 4 for the average air velocity at B–D axis are not included in the continuous set of sensors must be along sensor 1. Take the average of the air calculation of average air velocity.
[FR Doc. 2016–17139 Filed 7–22–16; 8:45 am] BILLING CODE 6450–01–P
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Part VI
Department of the Interior
Fish and Wildlife Service 50 CFR Part 20 Migratory Bird Hunting; Seasons and Bag and Possession Limits for Certain Migratory Game Birds; Final Rule
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DEPARTMENT OF THE INTERIOR On December 11, 2015, we published under the caption FOR FURTHER in the Federal Register (80 FR 77088) INFORMATION CONTACT. Fish and Wildlife Service the proposed frameworks for the 2016– Endangered Species Act Consideration 17 season migratory bird hunting 50 CFR Part 20 regulations. On March 28, 2016, we Section 7 of the Endangered Species [Docket No. FWS–HQ–MB–2015–0034; published in the Federal Register (81 Act of 1973, as amended (16 U.S.C. 1531 FF09M21200–167–FXMB1231099BPP0] FR 17302) final season frameworks for et seq.), provides that, ‘‘The Secretary migratory game bird hunting shall review other programs RIN 1018–BA70 regulations, from which State wildlife administered by him and utilize such conservation agency officials selected Migratory Bird Hunting; Seasons and programs in furtherance of the purposes season hunting dates, hours, areas, and of this Act’’ (and) shall ‘‘insure that any Bag and Possession Limits for Certain limits for 2016–17 seasons. Migratory Game Birds action authorized, funded, or carried out The final rule described here is the * * * is not likely to jeopardize the AGENCY: Fish and Wildlife Service, final in the series of proposed, continued existence of any endangered Interior. supplemental, and final rulemaking species or threatened species or result in ACTION: Final rule. documents for migratory game bird the destruction or adverse modification hunting regulations for 2016–17 and of [critical] habitat. * * *.’’ SUMMARY: This rule prescribes the deals specifically with amending Consequently, we conducted formal hunting seasons, hours, areas, and daily subpart K of 50 CFR part 20. It sets consultations to ensure that actions bag and possession limits for migratory hunting seasons, hours, areas, and limits resulting from these regulations would game birds. Taking of migratory birds is for migratory game bird species. This not likely jeopardize the continued prohibited unless specifically provided final rule is the culmination of the existence of endangered or threatened for by annual regulations. This rule rulemaking process for the migratory species or result in the destruction or permits the taking of designated species game bird hunting seasons, which adverse modification of their critical during the 2016–17 season. started with the August 6, 2015, habitat. Findings from these DATES: This rule takes effect on July 25, proposed rule. As discussed elsewhere consultations are included in a 2016. in this document, we supplemented that biological opinion, which concluded proposal on December 11, and ADDRESSES: You may inspect comments that the regulations are not likely to published final season frameworks on received on the migratory bird hunting jeopardize the continued existence of March 28, 2016, that provided the regulations during normal business any endangered or threatened species. season selection criteria from which the hours at the Service’s office at 5275 Our biological opinions resulting from States selected these seasons. This final Leesburg Pike, Falls Church, Virginia. this section 7 consultation are public rule sets the migratory game bird You may obtain copies of referenced documents available for public hunting seasons based on that input reports from the street address above, or inspection at the address indicated from the States. We previously from the Division of Migratory Bird under ADDRESSES. addressed all comments in the March 28 Management’s Web site at http:// Federal Register. Regulatory Planning and Review www.fws.gov/migratorybirds/, or at (Executive Orders 12866 and 13563) http://www.regulations.gov at Docket National Environmental Policy Act No. FWS–HQ–MB–2015–0034. (NEPA) Executive Order 12866 provides that FOR FURTHER INFORMATION CONTACT: Ron The programmatic document, the Office of Information and Regulatory W. Kokel, Division of Migratory Bird ‘‘Second Final Supplemental Affairs (OIRA) will review all significant Management, U.S. Fish and Wildlife Environmental Impact Statement: rules. OIRA has reviewed this rule and Service, (703) 358–1714. Issuance of Annual Regulations has determined that this rule is SUPPLEMENTARY INFORMATION: Permitting the Sport Hunting of significant because it would have an Migratory Birds (EIS 20130139),’’ filed annual effect of $100 million or more on Regulations Schedule for 2016 with the Environmental Protection the economy. On August 6, 2015, we published in Agency (EPA) on May 24, 2013, Executive Order 13563 reaffirms the the Federal Register (80 FR 47388) a addresses NEPA compliance by the principles of E.O. 12866 while calling proposal to amend 50 CFR part 20. The Service for issuance of the annual for improvements in the nation’s proposal provided a background and framework regulations for hunting of regulatory system to promote overview of the migratory bird hunting migratory game bird species. We predictability, to reduce uncertainty, regulations process, and addressed the published a notice of availability in the and to use the best, most innovative, establishment of seasons, limits, and Federal Register on May 31, 2013 (78 and least burdensome tools for other regulations for hunting migratory FR 32686), and our Record of Decision achieving regulatory ends. The game birds under §§ 20.101 through on July 26, 2013 (78 FR 45376). We also executive order directs agencies to 20.107, 20.109, and 20.110 of subpart K. address NEPA compliance for waterfowl consider regulatory approaches that Major steps in the 2016–17 regulatory hunting frameworks through the annual reduce burdens and maintain flexibility cycle relating to open public meetings preparation of separate environmental and freedom of choice for the public and Federal Register notifications were assessments, the most recent being where these approaches are relevant, also identified in the August 6, 2015, ‘‘Duck Hunting Regulations for 2016– feasible, and consistent with regulatory proposed rule. 17,’’ with its corresponding January objectives. E.O. 13563 emphasizes On October 20–21, 2015, we held 2016, finding of no significant impact. further that regulations must be based open meetings with the Flyway Council In addition, an August 1985 on the best available science and that Consultants, at which the participants environmental assessment entitled the rulemaking process must allow for reviewed information on the current ‘‘Guidelines for Migratory Bird Hunting public participation and an open status of migratory game birds and Regulations on Federal Indian exchange of ideas. We have developed developed recommendations for the Reservations and Ceded Lands’’ is this rule in a manner consistent with 2016–17 regulations for these species. available from the person indicated these requirements.
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An updated economic analysis was Small Business Regulatory Enforcement therefore, reduces restrictions on the use prepared for the 2013–14 season. This Fairness Act of private and public property. analysis was based on data from the This rule is a major rule under 5 Energy Effects—Executive Order 13211 newly released 2011 National Hunting U.S.C. 804(2), the Small Business and Fishing Survey, the most recent Executive Order 13211 requires Regulatory Enforcement Fairness Act. agencies to prepare Statements of year for which data are available (see For the reasons outlined above, this rule discussion in Regulatory Flexibility Act, Energy Effects when undertaking certain will have an annual effect on the actions. While this rule is a significant below). This analysis estimated economy of $100 million or more. consumer surplus for three alternatives regulatory action under Executive Order for duck hunting (estimates for other Paperwork Reduction Act 12866, it is not expected to adversely affect energy supplies, distribution, or species are not quantified due to lack of This final rule does not contain any use. Therefore, this action is not a data). The alternatives were: (1) Issue new information collection that requires significant energy action and no restrictive regulations allowing fewer approval under the Paperwork Statement of Energy Effects is required. days than those issued during the 2012– Reduction Act of 1995 (44 U.S.C. 3501 13 season, (2) issue moderate et seq.). We may not conduct or sponsor Government-to-Government regulations allowing more days than and you are not required to respond to Relationship With Tribes those in alternative 1, and (3) issue a collection of information unless it In accordance with the President’s liberal regulations identical to the displays a currently valid Office of memorandum of April 29, 1994, regulations in the 2012–13 season. For Management and Budget (OMB) control ‘‘Government-to-Government Relations the 2013–14 season, we chose number. OMB has reviewed and with Native American Tribal Alternative 3, with an estimated approved the information collection Governments’’ (59 FR 22951), Executive consumer surplus across all flyways of requirements associated with migratory Order 13175, and 512 DM 2, we have $317.8–$416.8 million. For the 2016–17 bird surveys and assigned the following evaluated possible effects on Federally season, we have also chosen alternative OMB control numbers: recognized Indian tribes and have 3. We also chose Alternative 3 for the • 1018–0019—North American determined that there are no effects on 2009–10, the 2010–11, the 2011–12, the Woodcock Singing Ground Survey Indian trust resources. However, in the 2012–13, the 2014–15, and the 2015–16 (expires 5/31/2018). August 6 Federal Register, we solicited seasons. The 2013–14 analysis is part of • 1018–0023—Migratory Bird proposals for special migratory bird the record for this rule and is available Surveys (expires 6/30/2017). Includes hunting regulations for certain Tribes on at http://www.regulations.gov at Docket Migratory Bird Harvest Information Federal Indian reservations, off- No. FWS–HQ–MB–2015–0034. Program, Migratory Bird Hunter reservation trust lands, and ceded lands Surveys, Sandhill Crane Survey, and for the 2016–17 migratory bird hunting Regulatory Flexibility Act Parts Collection Survey. season. The resulting proposals were contained in a May 27, 2016, proposed The annual migratory bird hunting Unfunded Mandates Reform Act rule (81 FR 34226). By virtue of these regulations have a significant economic We have determined and certify, in actions, we have consulted with affected impact on substantial numbers of small compliance with the requirements of the Tribes. entities under the Regulatory Flexibility Unfunded Mandates Reform Act, 2 Federalism Effects Act (5 U.S.C. 601 et seq.). We analyzed U.S.C. 1502 et seq., that this rulemaking the economic impacts of the annual will not impose a cost of $100 million Due to the migratory nature of certain hunting regulations on small business or more in any given year on local or species of birds, the Federal entities in detail as part of the 1981 cost- State government or private entities. Government has been given benefit analysis. This analysis was Therefore, this rule is not a ‘‘significant responsibility over these species by the revised annually from 1990–95. In 1995, regulatory action’’ under the Unfunded Migratory Bird Treaty Act. We annually the Service issued a Small Entity Mandates Reform Act. prescribe frameworks from which the Flexibility Analysis (Analysis), which States make selections regarding the was subsequently updated in 1996, Civil Justice Reform—Executive Order hunting of migratory birds, and we 1998, 2004, 2008, and 2013. The 12988 employ guidelines to establish special primary source of information about The Department, in promulgating this regulations on Federal Indian hunter expenditures for migratory game rule, has determined that this rule will reservations and ceded lands. This bird hunting is the National Hunting not unduly burden the judicial system process preserves the ability of the and Fishing Survey, which is conducted and that it meets the requirements of States and tribes to determine which at 5-year intervals. The 2013 Analysis sections 3(a) and 3(b)(2) of Executive seasons meet their individual needs. was based on the 2011 National Hunting Order 12988. Any State or Indian tribe may be more and Fishing Survey and the U.S. restrictive than the Federal frameworks Department of Commerce’s County Takings Implication Assessment at any time. The frameworks are Business Patterns, from which it was In accordance with Executive Order developed in a cooperative process with estimated that migratory bird hunters 12630, this rule, authorized by the the States and the Flyway Councils. would spend approximately $1.5 billion Migratory Bird Treaty Act (16 U.S.C. This process allows States to participate at small businesses in 2013. Copies of 703–712), does not have significant in the development of frameworks from the Analysis are available upon request takings implications and does not affect which they will make selections, from the Division of Migratory Bird any constitutionally protected property thereby having an influence on their Management (see FOR FURTHER rights. This rule will not result in the own regulations. These rules do not INFORMATION CONTACT) or from our Web physical occupancy of property, the have a substantial direct effect on fiscal site at http://www.fws.gov/ physical invasion of property, or the capacity, change the roles or migratorybirds or at http:// regulatory taking of any property. In responsibilities of Federal or State www.regulations.gov at Docket No. fact, this rule allows hunters to exercise governments, or intrude on State policy FWS–HQ–MB–2015–0034. otherwise unavailable privileges and, or administration. Therefore, in
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accordance with Executive Order 13132, believe that sufficient public notice and Federal Regulations is amended as these regulations do not have significant opportunity for involvement have been follows: federalism effects and do not have given to affected persons. sufficient federalism implications to Further, States need sufficient time to PART 20—MIGRATORY BIRD warrant the preparation of a federalism communicate these season selections to HUNTING summary impact statement. their affected publics, and to establish and publicize the necessary regulations ■ 1. The authority citation for part 20 Review of Public Comments and procedures to implement these continues to read as follows: The preliminary proposed rulemaking seasons. Thus, we find that ‘‘good Authority: Migratory Bird Treaty Act, 40 (August 6 Federal Register) opened the cause’’ exists, within the terms of 5 Stat. 755, 16 U.S.C. 703–712; Fish and public comment period for 2016–17 U.S.C. 553(d)(3) of the Administrative Wildlife Act of 1956, 16 U.S.C. 742 a–j; migratory game bird hunting Procedure Act, and therefore, under Public Law 106–108, 113 Stat. 1491, Note regulations. We previously addressed all authority of the Migratory Bird Treaty Following 16 U.S.C. 703. comments in a March 28, 2016, Federal Act (July 3, 1918), as amended (16 Note— The following annual hunting Register publication (81 FR 17302). U.S.C. 703–711), these regulations will regulations provided for by §§ 20.101 through Regulations Promulgation take effect less than 30 days after 20.106 and 20.109 of 50 CFR 20 will not publication. Accordingly, with each appear in the Code of Federal Regulations The rulemaking process for migratory conservation agency having had an because of their seasonal nature. game bird hunting, by its nature, opportunity to participate in selecting operates under a time constraint as ■ 2. Section 20.101 is revised to read as the hunting seasons desired for its State seasons must be established each year or follows: or Territory on those species of hunting seasons remain closed. migratory birds for which open seasons § 20.101 Seasons, limits, and shooting However, we intend that the public be are now prescribed, and consideration hours for Puerto Rico and the Virgin provided extensive opportunity for having been given to all other relevant Islands. public input and involvement in matters presented, certain sections of compliance with Administrative Subject to the applicable provisions of Procedure Act requirements. Thus, title 50, chapter I, subchapter B, part 20, the preceding sections of this part, areas when the preliminary proposed subpart K, are hereby amended as set open to hunting, respective open rulemaking was published, we forth below. seasons (dates inclusive), shooting and established what we believed were the List of Subjects in 50 CFR Part 20 hawking hours, and daily bag and longest periods possible for public possession limits for the species Exports, Hunting, Imports, Reporting comment and the most opportunities for designated in this section are prescribed and recordkeeping requirements, public involvement. We also provided as follows: Transportation, Wildlife. notification of our participation in Shooting and hawking hours are one- multiple Flyway Council meetings, Dated: June 30, 2016. half hour before sunrise until sunset. opportunities for additional public Karen Hyun, review and comment on all Flyway Acting Principal Assistant Deputy Secretary CHECK COMMONWEALTH Council proposals for regulatory change, for Fish and Wildlife and Parks. REGULATIONS FOR AREA and opportunities for additional public For the reasons set out in the DESCRIPTIONS AND ANY review during the Service Regulations preamble, title 50, chapter I, subchapter ADDITIONAL RESTRICTIONS. Committee meeting. Therefore, we B, part 20, subpart K of the Code of (a) Puerto Rico.
Limits Season dates Bag Possession
Doves and Pigeons: Zenaida, white–winged, and mourning doves (1) Sept. 3–Oct. 31 ...... 20 20 Scaly–naped pigeons ...... Sept. 3–Oct. 31 ...... 5 5 Ducks ...... Nov. 12–Dec. 19 & ...... 6 12 Jan. 14–Jan. 30 ...... 6 12 Common Moorhens ...... Nov. 12–Dec. 19 & ...... 6 12 Jan. 14–Jan. 30 ...... 6 12 Common Snipe ...... Nov. 12–Dec. 19 & ...... 8 16 Jan. 14–Jan. 30 ...... 8 16 (1) Not more than 10 Zenaida and 3 mourning doves in the aggregate.
Restrictions: In Puerto Rico, the masked duck, purple gallinule, Closed Areas: Closed areas are season is closed on the ruddy duck, American coot, Caribbean coot, white- described in the March 28, 2016, white-cheeked pintail, West Indian crowned pigeon, and plain pigeon. Federal Register (81 FR 17302). whistling duck, fulvous whistling duck, (b) Virgin Islands.
Limits Season dates Bag Possession
Zenaida doves ...... Sept. 1–Sept. 30 ...... 10 10 Ducks ...... CLOSED.
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Restrictions: In the Virgin Islands, the § 20.102 Seasons, limits, and shooting CHECK STATE REGULATIONS FOR seasons are closed for ground or quail hours for Alaska. AREA DESCRIPTIONS AND ANY doves, pigeons, ruddy duck, white- Subject to the applicable provisions of ADDITIONAL RESTRICTIONS. cheeked pintail, West Indian whistling the preceding sections of this part, areas duck, fulvous whistling duck, masked open to hunting, respective open Area seasons Dates duck, and all other ducks, and purple seasons (dates inclusive), shooting and gallinule. hawking hours, and daily bag and North Zone ...... Sept. 1–Dec. 16. Closed Areas: Ruth Cay, just south of possession limits for the species Gulf Coast Zone ...... Sept. 1–Dec. 16. St. Croix, is closed to the hunting of designated in this section are prescribed Southeast Zone ...... Sept. 16–Dec. 31. migratory game birds. All Offshore Cays as follows: Pribilof & Aleutian Is- Oct. 8–Jan. 22. under jurisdiction of the Virgin Islands Shooting and hawking hours are one- lands Zone. Government are closed to the hunting of half hour before sunrise until sunset. Kodiak Zone ...... Oct. 8–Jan. 22. migratory game birds. Area descriptions were published in the ■ 3. Section 20.102 is revised to read as March 28, 2016, Federal Register (81 FR follows: 17302).
Daily bag and possession limits Ducks White Area (1) Canada fronted Light Emperor Sandhill geese geese geese Brant geese Snipe cranes (2)(3) (4)(5) (6) (7)
North Zone ...... 10–30 4–12 4–12 6–18 3–9 Closed .. 8–24 3–9 Gulf Coast Zone ...... 8–24 4–12 4–12 6–18 3–9 Closed .. 8–24 2–6 Southeast Zone...... 7–21 4–12 4–12 6–18 3–9 Closed.. 8–24 2–6 Pribilof and Aleutian Islands Zone ...... 7–21 4–12 4–12 6–18 3–9 Closed .. 8–24 2–6 Kodiak Zone ...... 7–21 4–12 4–12 6–18 3–9 Closed .. 8–24 2–6 (1) The basic duck bag limits may include no more than 2 canvasbacks daily, and may not include sea ducks. In addition to the basic duck lim- its, the sea duck limit is 10 daily (singly or in the aggregate), including no more than 6 each of either harlequin or long-tailed ducks. Sea ducks include scoters, common and king eiders, harlequin ducks, long-tailed ducks, and common and red-breasted mergansers. The season for Steller’s and spectacled eiders is closed. (2) In Units 5 and 6, the taking of Canada geese is only permitted from September 28 through December 16. In the Middleton Island portion of Unit 6, the taking of Canada geese is by special permit only. The maximum number of Canada goose permits is 10 for the season. A mandatory goose-identification class is required. Hunters must check in and out. The daily bag and possession limit is 1. The season will close if incidental harvest includes 5 dusky Canada geese. A dusky Canada goose is any dark-breasted Canada goose (Munsell 10 YR color value five or less) with a bill length between 40 and 50 millimeters. (3) In Units 9, 10, 17, and 18, for Canada geese, the daily bag limit is 6 and the possession limit is 18. (4) In Units 9, 10, and 17, for white-fronted geese, the daily bag limit is 6 and the possession limit is 18. (5) In Unit 18, for white-fronted geese, the daily bag limit is 10 and the possession limit is 30. (6) Light geese include snow geese and Ross’s geese. (7) In Unit 17 of the North Zone, for sandhill cranes, the daily bag limit is 2 and the possession limit is 6.
Falconry: The total combined bag and a harvest report with the State after the designated in this section are prescribed possession limit for migratory game season is completed. Up to 500 permits as follows: birds taken with the use of a raptor may be issued in Unit 18; 300 permits Shooting and hawking hours are one- under a falconry permit is 3 per day, 9 each in Units 22 and 23; and 200 half hour before sunrise until sunset in possession, and may not exceed a permits in Unit 17. except as otherwise noted. Area descriptions were published in the more restrictive limit for any species ■ 4. Section 20.103 is revised to read as March 28, 2016, Federal Register (81 FR listed in this subsection. follows: Special Tundra Swan Season: In 17302). Units 17, 18, 22, and 23, there will be § 20.103 Seasons, limits, and shooting CHECK STATE REGULATIONS FOR hours for doves and pigeons. a tundra swan season from September 1 AREA DESCRIPTIONS AND ANY through October 31 with a season limit Subject to the applicable provisions of ADDITIONAL RESTRICTIONS. of 3 tundra swans per hunter. This the preceding sections of this part, areas (a) Doves. season is by State registration permit open to hunting, respective open Note: Unless otherwise noted, the seasons only; hunters will be issued 1 permit seasons (dates inclusive), shooting and listed below are for mourning and white- allowing the take of up to 3 tundra hawking hours, and daily bag and winged doves. Daily bag and possession swans. Hunters will be required to file possession limits for the species limits are in the aggregate for the two species.
Limits Season dates Bag Possession
EASTERN MANAGEMENT UNIT
Alabama: North Zone: 12 noon to sunset ...... Sept. 10 only ...... 15 15 1⁄2 hour before sunrise to sunset ...... Sept. 11–Oct. 30 & ...... 15 45 Dec. 8–Jan. 15 ...... 15 45 South Zone:
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Limits Season dates Bag Possession
12 noon to sunset ...... Sept. 17 only ...... 15 15 1⁄2 hour before sunrise to sunset ...... Sept. 18–Sept. 25 & ...... 15 45 Oct. 8–Oct. 23 & ...... 15 45 Nov. 12–Jan. 15 ...... 15 45 Delaware ...... Sept. 1–Oct. 1 & ...... 15 45 Oct. 19–Oct. 22 & ...... 15 45 Nov. 21–Jan. 14 ...... 15 45 Florida: 12 noon to sunset ...... Sept. 24–Oct. 24 ...... 15 45 1⁄2 hour before sunrise to sunset ...... Nov. 12–Dec. 5 & ...... 15 45 Dec. 12–Jan. 15 ...... 15 45 Georgia: 12 noon to sunset ...... Sept. 3 only ...... 15 15 1⁄2 hour before sunrise to sunset ...... Sept. 4–Sept. 18 & ...... 15 45 Oct. 8–Oct. 28 & ...... 15 45 Nov. 24–Jan. 15 ...... 15 45 Illinois (1) ...... Sept. 1–Nov. 14 & ...... 15 45 Dec. 26–Jan. 9 ...... 15 45 Indiana ...... Sept. 1–Oct. 16 & ...... 15 45 Nov. 1–Nov. 13 & ...... 15 45 Dec. 10–Jan. 8 ...... 15 45 Kentucky: 11 a.m. to sunset ...... Sept. 1 only ...... 15 15 1⁄2 hour before sunrise to sunset ...... Sept. 2–Oct. 26 & ...... 15 45 Nov. 24–Dec. 4 & ...... 15 45 Dec. 24–Jan. 15 ...... 15 45 Louisiana: North Zone: 1⁄2 hour before sunrise to sunset ...... Sept. 3–Sept. 25 & ...... 15 45 Oct. 8–Nov. 13 & ...... 15 45 Dec. 17–Jan. 15 ...... 15 45 South Zone: 1⁄2 hour before sunrise to sunset ...... Sept. 3–Sept. 11 & ...... 15 45 Oct. 8–Nov. 27 & ...... 15 45 Dec. 17–Jan. 15 ...... 15 45 Maryland: 12 noon to sunset ...... Sept. 1–Oct. 8 ...... 15 45 1⁄2 hour before sunrise to sunset ...... Oct. 21–Nov. 19 & ...... 15 45 Dec. 17–Jan. 7 ...... 15 45 Mississippi: North Zone ...... Sept. 3–Oct. 9 & ...... 15 45 Oct. 22–Nov. 6 & ...... 15 45 Dec. 10–Jan. 15 ...... 15 45 South Zone ...... Sept. 3–Sept. 11 & ...... 15 45 Oct. 8–Nov. 13 & ...... 15 45 Dec. 3–Jan. 15 ...... 15 45 North Carolina ...... Sept. 3–Oct. 8 & ...... 15 45 Nov. 21–Dec. 3 & ...... 15 45 Dec. 5–Jan. 14 ...... 15 45 Ohio ...... Sept. 1–Nov. 6 & ...... 15 45 Dec. 17–Jan. 8 ...... 15 45 Pennsylvania: 12 noon to sunset ...... Sept. 1–Oct. 8 ...... 15 45 1⁄2 hour before sunrise to sunset ...... Oct. 15–Nov. 26 & ...... 15 45 Dec. 26–Jan. 3 ...... 15 45 Rhode Island: 12 noon to sunset ...... Sept. 10–Oct. 9 ...... 15 45 1⁄2 hour before sunrise to sunset ...... Oct. 15–Nov. 27 & ...... 15 45 Dec. 10–Dec. 25 ...... 15 45 South Carolina: 12 noon to sunset ...... Sept. 3–Sept. 5 ...... 12 36 1⁄2 hour before sunrise to sunset ...... Sept. 6–Oct. 15 & ...... 12 36 Nov. 12–Nov. 26 & ...... 12 36 Dec. 15–Jan. 15 ...... 12 36 Tennessee: 12 noon to sunset ...... Sept. 1 only ...... 15 15 1⁄2 hour before sunrise to sunset ...... Sept. 2–Sept. 28 & ...... 15 45 Oct. 8–Oct. 30 & ...... 15 45 Dec. 8–Jan. 15 ...... 15 45 Virginia: 12 noon to sunset ...... Sept. 3–Sept. 9 ...... 15 45
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Limits Season dates Bag Possession
1⁄2 hour before sunrise to sunset ...... Sept. 10–Oct. 30 & ...... 15 45 Nov. 19–Nov. 27 & ...... 15 45 Dec. 24–Jan. 15 ...... 15 45 West Virginia: 12 noon to sunset ...... Sept. 1 only ...... 15 15 1⁄2 hour before sunrise to sunset ...... Sept. 2–Oct. 15 & ...... 15 45 Oct. 31–Nov. 19 & ...... 15 45 Dec. 19–Jan. 12 ...... 15 45 Wisconsin ...... Sept. 1–Nov. 29 ...... 15 45
CENTRAL MANAGEMENT UNIT
Arkansas ...... Sept. 3–Oct. 23 & ...... 15 45 Dec. 8–Jan. 15 ...... 15 45 Colorado ...... Sept. 1–Nov. 9 ...... 15 45 Iowa ...... Sept. 1–Nov. 9 ...... 15 45 Kansas ...... Sept. 1–Nov. 29 ...... 15 45 Minnesota ...... Sept. 1–Nov. 29 ...... 15 45 Missouri ...... Sept. 1–Nov. 29 ...... 15 45 Montana ...... Sept. 1–Oct. 30 ...... 15 45 Nebraska ...... Sept. 1–Oct. 30 ...... 15 45 New Mexico: North Zone ...... Sept. 1–Nov. 29 ...... 15 45 South Zone: ...... Sept. 1–Oct. 30 & ...... 15 45 Dec. 3–Jan. 1 ...... 15 45 North Dakota ...... Sept. 1–Nov. 29 ...... 15 45 Oklahoma ...... Sept. 1–Oct. 31 & ...... 15 45 Dec. 17–Dec. 25 ...... 15 45 South Dakota ...... Sept. 1–Nov. 9 ...... 15 45 Texas (2): North Zone ...... Sept. 1–Nov. 13 & ...... 15 45 Dec. 17–Jan. 1 ...... 15 45 Central Zone ...... Sept. 1–Nov. 6 & ...... 15 45 Dec. 17–Jan. 8 ...... 15 45 South Zone: Special Area ...... Sept. 23–Nov. 9 & ...... 15 45 Dec. 17–Jan. 23 ...... 15 45 (Special Season) ...... Sept. 3–Sept. 4 & ...... 15 45 12 noon to sunset ...... Sept. 10–Sept. 11 ...... 15 45 Remainder of the South Zone ...... Sept. 23–Nov. 13 & ...... 15 45 Dec. 17–Jan. 23 ...... 15 45 Wyoming ...... Sept. 1–Nov. 29 ...... 15 45
WESTERN MANAGEMENT UNIT
Arizona (3) ...... Sept. 1–Sept. 15 & ...... 15 45 Nov. 25–Jan. 8 ...... 15 45 California (4) ...... Sept. 1–Sept. 15 & ...... 15 45 Nov. 14–Dec. 28 ...... 15 45 Idaho ...... Sept. 1–Oct. 30 ...... 15 45 Nevada ...... Sept. 1–Oct. 30 ...... 15 45 Oregon ...... Sept. 1–Oct. 30 ...... 15 45 Utah ...... Sept. 1–Oct. 30 ...... 15 45 Washington ...... Sept. 1–Oct. 30 ...... 15 45
OTHER POPULATIONS
Hawaii (5) ...... Nov. 5–Nov. 27 & ...... 10 30 Dec. 3–Jan. 23 ...... 10 30 (1) In Illinois, shooting hours are sunrise to sunset. (2) In Texas, the daily bag limit is 15 mourning, white-winged, and white-tipped doves in the aggregate, of which no more than 2 may be white- tipped doves with a maximum 90-day season. Possession limits are three times the daily bag limit. During the special season in the Special White-winged Dove Area of the South Zone, the daily bag limit is 15 mourning, white-winged, and white-tipped doves in the aggregate, of which no more than 2 may be mourning doves and 2 may be white-tipped doves. Possession limits are three times the daily bag limit. (3) In Arizona, during September 1 through 15, the daily bag limit is 15 mourning and white-winged doves in the aggregate, of which no more than 10 may be white-winged doves. During November 25 through January 8, the daily bag limit is 15 mourning doves. (4) In California, the daily bag limit is 15 mourning and white-winged doves in the aggregate, of which no more than 10 may be white-wing doves. (5) In Hawaii, the season is only open on the island of Hawaii. The daily bag limits are 10 mourning doves, spotted doves, and chestnut-bellied sandgrouse in the aggregate. Shooting hours are from one-half hour before sunrise through one-half hour after sunset. Hunting is permitted only on weekends and State holidays.
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(b) Band-tailed Pigeons.
Limits Season dates Bag Possession
Arizona ...... Sept. 2–Sept. 15 ...... 2 6 California: North Zone ...... Sept. 19–Sept. 27 ...... 2 6 South Zone ...... Dec. 19–Dec. 27 ...... 2 6 Colorado ...... Sept. 1–Sept. 14 ...... 2 6 New Mexico: North Zone ...... Sept. 1–Sept. 14 ...... 2 6 South Zone ...... Oct. 1–Oct. 14 ...... 2 6 Oregon ...... Sept. 15–Sept. 23 ...... 2 6 Utah (1) ...... Sept. 1–Sept. 14 ...... 2 6 Washington ...... Sept. 15–Sept. 23 ...... 2 6 (1) In Utah, each band-tailed pigeon hunter must have a band-tailed pigeon hunting permit issued by the State.
■ 5. Section 20.104 is revised to read as seasons (dates inclusive), shooting and except as otherwise noted. Area follows: hawking hours, and daily bag and descriptions were published in the possession limits for the species March 28, 2016, Federal Register (81 FR § 20.104 Seasons, limits, and shooting 17302). hours for rails, woodcock, and snipe. designated in this section are prescribed as follows: Subject to the applicable provisions of CHECK STATE REGULATIONS FOR the preceding sections of this part, areas Shooting and hawking hours are one- AREA DESCRIPTIONS AND ANY open to hunting, respective open half hour before sunrise until sunset ADDITIONAL RESTRICTIONS.
Sora and Virginia Rails Clapper and King Rails Woodcock Snipe Daily bag limit 25 (1) 15 (2) 3 8 Possession limit 75 (1) 45 (2) 9 24
ATLANTIC FLYWAY Connecticut (3) ...... Sept. 1–Nov. 9 ...... Sept. 1–Nov. 9 ...... Oct. 22–Nov. 19 & Nov. Oct. 22–Nov. 19 & Nov. 21–Dec. 6. 21–Dec. 6. Delaware ...... Sept. 1–Nov. 9 ...... Sept. 1–Nov. 9 ...... Nov. 21–Dec. 3 & Dec. Sept. 20–Dec. 3 & Dec. 14–Jan. 14. 14–Jan. 14. Florida ...... Sept. 1–Nov. 9 ...... Sept. 1–Nov. 9 ...... Dec. 18–Jan. 31 ...... Nov. 1–Feb. 15. Georgia ...... Sept. 24–Nov. 10 & Nov. Sept. 24–Nov. 10 & Nov. Dec. 10–Jan. 23 ...... Nov. 15–Feb. 28. 25–Dec. 16. 25–Dec. 16. Maine (4) ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 1–Oct. 29 & Oct. 31– Sept. 1–Dec. 16. Nov. 15. Maryland (5) ...... Sept. 1–Nov. 9 ...... Sept. 1–Nov. 9 ...... Oct. 28–Nov. 25 & Jan. Sept. 27–Nov. 25 & Dec. 13–Jan. 28. 13–Jan. 28. Massachusetts (6) ...... Sept. 1–Nov. 7 ...... Closed ...... Oct. 5–Oct. 29 & Oct. 31– Sept. 1–Dec. 16. Nov. 19. New Hampshire ...... Closed ...... Closed ...... Oct. 1–Nov. 14 ...... Sept. 15–Nov. 14. New Jersey (7): North Zone ...... Sept. 1–Nov. 9 ...... Sept. 1–Nov. 9 ...... Oct. 15–Nov. 19 ...... Sept. 16–Dec. 31. South Zone ...... Sept. 1–Nov. 9 ...... Sept. 1–Nov. 9 ...... Nov. 12–Dec. 3 & Dec. Sept. 16–Dec. 31. 17–Dec. 30. New York (8) ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 1–Nov. 14 ...... Sept. 1–Nov. 9. North Carolina ...... Sept. 1–Oct. 1 & Oct. 14– Sept. 1–Oct. 1 & Oct. 14– Dec. 15–Jan. 28 ...... Nov. 14–Feb. 28. Nov. 21. Nov. 21. Pennsylvania (9) ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 15–Nov. 26 ...... Oct. 15–Nov. 26. Rhode Island (10) ...... Sept. 1–Nov. 9 ...... Sept. 1–Nov. 9 ...... Oct. 15–Nov. 28 ...... Sept. 1–Nov. 9. South Carolina ...... Sept. 17–Sept. 21 & Oct. Sept. 17–Sept. 21 & Oct. Dec. 18–Jan. 31 ...... Nov. 14–Feb. 28. 15–Dec. 18. 15–Dec. 18. Vermont ...... Closed ...... Closed ...... Oct. 1–Nov. 14 ...... Oct. 1–Nov. 14. Virginia ...... Sept. 10–Nov. 18 ...... Sept. 10–Nov. 18 ...... Oct. 29–Nov. 4 & Dec. 9– Oct. 7–Oct. 10 & Oct. 21– Jan. 15. Jan. 31. West Virginia (11) ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 15–Nov. 19 & Nov. Sept. 1–Dec. 16. 28–Dec. 6. MISSISSIPPI FLYWAY Alabama ...... Sept. 10–Sept. 25 & Nov. Sept. 10–Sept. 25 & Nov. Dec. 16–Jan. 29 ...... Nov. 12–Feb. 26. 26–Jan. 18. 26–Jan. 18. Arkansas ...... Sept. 10–Nov. 18 ...... Closed ...... Nov. 5–Dec. 19 ...... Nov. 1–Feb. 15. Illinois (12) ...... Sept. 3–Nov. 11 ...... Closed ...... Oct. 15–Nov. 28 ...... Sept. 3–Dec. 18. Indiana (13) ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 15–Nov. 28 ...... Sept. 1–Dec. 16. Iowa (14) ...... Sept. 3–Nov. 11 ...... Closed ...... Oct. 1–Nov. 14 ...... Sept. 3–Nov. 30. Kentucky ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 22–Nov. 11 & Nov. Sept. 21–Oct. 30 & Nov. 14–Dec. 7. 24–Jan. 29.
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Sora and Virginia Rails Clapper and King Rails Woodcock Snipe Daily bag limit 25 (1) 15 (2) 3 8 Possession limit 75 (1) 45 (2) 9 24
Louisiana: West Zone ...... Sept. 10–Sept. 25 & Nov. Sept. 10–Sept. 25 & Nov. Dec. 18–Jan. 31 ...... Nov. 2–Dec. 4 & Dec. 17– 12–Jan. 4. 12–Jan. 4. Feb. 28. East Zone ...... Sept. 10–Sept. 25 & Nov. Sept. 10–Sept. 25 & Nov. Dec. 18–Jan. 31 ...... Nov. 2–Dec. 4 & Dec. 17– 12–Jan. 4. 12–Jan. 4. Feb. 28 . Coastal Zone ...... Sept. 10–Sept. 25 & Nov. Sept. 10–Sept. 25 & Nov. Dec. 18–Jan. 31 ...... Nov. 2–Dec. 4 & Dec. 17– 12–Jan. 4. 12–Jan. 4. Feb. 28. Michigan ...... Sept. 1–Nov. 9 ...... Closed ...... Sept. 24–Nov. 7 ...... Sept. 1–Nov. 9. Minnesota ...... Sept. 1–Nov. 7 ...... Closed ...... Sept. 24–Nov. 7 ...... Sept. 1–Nov. 7. Mississippi ...... Sept. 3–Nov. 11 ...... Sept. 3–Nov. 11 ...... Dec. 18–Jan. 31 ...... Nov. 14–Feb. 28. Missouri ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 15–Nov. 28 ...... Sept. 1–Dec. 16. Ohio ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 8–Nov. 21 ...... Sept. 1–Nov. 29 & Dec. 17–Jan. 2. Tennessee: Reelfoot Zone ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 29–Dec. 12 ...... Nov. 14–Feb. 28. State Zone ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 29–Dec. 12 ...... Nov. 14–Feb. 28. Wisconsin: North Zone ...... Sept. 24–Nov. 22 ...... Closed ...... Sept. 24–Nov. 7 ...... Sept. 24–Nov. 22. South Zone ...... Oct. 1–Oct. 9 & Oct. 15– Closed ...... Sept. 24–Nov. 7 ...... Oct. 1–Oct. 9 & Oct. 15– Dec. 4. Dec. 4. Miss. River Zone ...... Oct. 1–Oct. 7 & Oct. 15– Closed ...... Sept. 24–Nov. 7 ...... Oct. 1–Oct. 7 & Oct. 15– Dec. 6. Dec. 6. CENTRAL FLYWAY Colorado ...... Sept. 1–Nov. 9 ...... Closed ...... Closed ...... Sept. 1–Dec. 16. Kansas ...... Sept. 1–Nov. 9 ...... Closed ...... Oct. 15–Nov. 28 ...... Sept. 1–Dec. 16. Montana ...... Closed ...... Closed ...... Closed ...... Sept. 1–Dec. 16. Nebraska (15) ...... Sept. 1–Nov. 9 ...... Closed ...... Sept. 24–Nov. 7 ...... Sept. 1–Dec. 16. New Mexico (16) ...... Sept. 17–Nov. 25 ...... Closed ...... Closed ...... Oct. 15–Jan. 29. North Dakota ...... Closed ...... Closed ...... Sept. 24–Nov. 7 ...... Sept. 17–Dec. 4. Oklahoma ...... Sept. 1–Nov. 9 ...... Closed ...... Nov. 1–Dec. 15 ...... Oct. 1–Jan. 15. South Dakota (17) ...... Closed ...... Closed ...... Closed ...... Sept. 1–Oct. 31. Texas ...... Sept. 10–Sept. 25 & Nov. Sept. 10–Sept. 25 & Nov. Dec. 18–Jan. 31 ...... Oct. 29–Feb. 12. 5–Dec. 28. 5–Dec. 28. Wyoming ...... Sept. 1–Nov. 9 ...... Closed ...... Closed ...... Sept. 1–Dec. 16. PACIFIC FLYWAY Arizona (18): North Zone ...... Closed ...... Closed ...... Closed ...... Oct. 7–Jan. 15. South Zone ...... Closed ...... Closed ...... Closed ...... Oct. 21–Jan. 29. California ...... Closed ...... Closed ...... Closed ...... Oct. 15–Jan. 29. Colorado ...... Sept. 1–Nov. 9 ...... Closed ...... Closed ...... Sept. 1–Dec. 16. Idaho: Zone 1 ...... Closed ...... Closed ...... Closed ...... Oct. 1–Jan. 13. Zone 2 ...... Closed ...... Closed ...... Closed ...... Oct. 1–Jan. 13. Zone 3 ...... Closed ...... Closed ...... Closed ...... Oct. 15–Jan. 27. Montana ...... Closed ...... Closed ...... Closed ...... Sept. 1–Dec. 16. Nevada: Northeast Zone ...... Closed ...... Closed ...... Closed ...... Oct. 1–Oct. 23 & Oct. 26– Jan. 15. Northwest Zone ...... Closed ...... Closed ...... Closed ...... Oct. 8–Oct. 23 & Oct. 26– Jan. 22. South Zone (19) ...... Closed ...... Closed ...... Closed ...... Oct. 15–Oct. 23 & Oct. 26–Jan. 29. New Mexico ...... Sept. 17–Nov. 25 ...... Closed ...... Closed ...... Oct. 17–Jan. 31. Oregon: Zone 1 ...... Closed ...... Closed ...... Closed ...... Nov. 5–Feb. 19. Zone 2 ...... Closed ...... Closed ...... Closed ...... Oct. 8–Nov. 27 & Nov. 30–Jan. 22. Utah ...... Closed ...... Closed ...... Closed ...... Oct. 1–Jan. 14. Washington: East Zone ...... Closed ...... Closed ...... Closed ...... Oct. 15–Oct. 19 & Oct. 22–Jan. 29. West Zone ...... Closed ...... Closed ...... Closed ...... Oct. 15–Oct. 19 & Oct. 22–Jan. 29. Wyoming ...... Sept. 1–Nov. 9 ...... Closed ...... Closed ...... Sept. 1–Dec. 16. (1) The daily bag and possession limits for sora and Virginia rails apply singly or in the aggregate of the two species. (2) All daily bag and possession limits for clapper and king rails apply singly or in the aggregate of the two species and, unless otherwise specified, the limits are in addition to the limits on sora and Virginia rails in all States. In Delaware, Maryland, and New Jersey, the limits for clap- per and king rails are 10 daily and 30 in possession. (3) In Connecticut, the limits for clapper and king rails apply singly or in the aggregate of the two species. Limits for clapper and king rail are 10 daily and 30 in possession and may include no more than 1 king rail.
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(4) In Maine, the daily bag and possession limit for sora and Virginia rails is 25. (5) In Maryland, no more than 1 king rail may be taken per day. (6) In Massachusetts, the sora rail limits are 5 daily and 15 in possession; the Virginia rail limits are 10 daily and 30 in possession. (7) In New Jersey, the season for king rail is closed by State regulation. (8) In New York, the rail daily bag and possession limits are 8 and 24, respectively. Seasons for sora and Virginia rails and snipe are closed on Long Island. (9) In Pennsylvania, the daily bag and possession limits for sora and Virginia rails, singly or in the aggregate, are 3 and 9, respectively. (10) In Rhode Island, the sora and Virginia rails limits are 3 daily and 9 in possession, singly or in the aggregate; the clapper and king rail lim- its are 1 daily and 3 in possession, singly or in the aggregate; the snipe limits are 5 daily and 15 in possession. (11) In West Virginia, the daily bag and possession limit for sora and Virginia rails is 25; the possession limit for snipe is 16. (12) In Illinois, shooting hours are from sunrise to sunset. (13) In Indiana, the season on Virginia rails is closed. (14) In Iowa, the limits for sora and Virginia rails are 12 daily and 24 in possession. (15) In Nebraska, the rail limits are 10 daily and 30 in possession. (16) In New Mexico, in the Central Flyway portion of the State, the rail limits are 10 daily and 20 in possession. (17) In South Dakota, the snipe limits are 5 daily and 15 in possession. (18) In Arizona, Ashurst Lake in Unit 5B is closed to snipe hunting. (19) In Nevada, the snipe season in that portion of the South Zone including the Moapa Valley to the confluence of the Muddy and Virgin riv- ers is only open November 1 through January 25.
■ 6. Section 20.105 is revised to read as hawking hours, and daily bag and March 28, 2016, Federal Register (81 FR follows: possession limits for the species 17302) and the April 12, 2016, Federal designated in this section are prescribed Register (81 FR 21480). § 20.105 Seasons, limits, and shooting hours for waterfowl, coots, and gallinules. as follows: CHECK STATE REGULATIONS FOR Subject to the applicable provisions of Shooting and hawking hours are one- AREA DESCRIPTIONS AND ANY the preceding sections of this part, areas half hour before sunrise until sunset, ADDITIONAL RESTRICTIONS. open to hunting, respective open except as otherwise noted. Area (a) Common Moorhens and Purple seasons (dates inclusive), shooting and descriptions were published in the Gallinules.
Limits Season dates Bag Possession
ATLANTIC FLYWAY Delaware ...... Sept. 1–Nov. 9 ...... 15 45 Florida (1) ...... Sept. 1–Nov.9 ...... 15 45 Georgia ...... Nov. 19–Nov. 27 & ...... 15 45 Dec. 10–Jan. 29 ...... 15 45 New Jersey ...... Sept. 1–Nov. 9 ...... 10 30 New York: Long Island ...... Closed. Remainder of State ...... Sept. 1–Nov. 9 ...... 8 24 North Carolina ...... Sept. 1–Oct. 1 & ...... 15 45 Oct. 14–Nov. 21 ...... 15 45 Pennsylvania ...... Sept. 1–Nov. 9 ...... 3 9 South Carolina ...... Sept. 17–Sept. 21 & ...... 15 45 Oct. 15–Dec. 18 ...... 15 45 Virginia ...... Sept. 10–Nov. 18 ...... 15 45 West Virginia ...... Oct. 1–Oct. 8 & ...... 15 30 Nov. 28–Jan. 28 ...... 15 30 MISSISSIPPI FLYWAY Alabama ...... Sept. 10–Sept. 25 & ...... 15 45 Nov. 26–Jan. 18 ...... 15 45 Arkansas ...... Sept. 1–Nov. 9 ...... 15 45 Kentucky ...... Sept. 1–Nov. 9 ...... 3 9 Louisiana ...... Sept. 10–Sept. 25 & ...... 15 45 Nov. 12–Jan. 4 ...... 15 45 Michigan ...... Sept. 1–Nov. 9 ...... 1 3 Minnesota (2): North Zone ...... Sept. 24–Nov. 22 ...... 15 45 Central Zone ...... Sept. 24–Oct. 2 & ...... 15 45 Oct. 8–Nov. 27 ...... 15 45 South Zone ...... Sept. 24–Oct. 2 & ...... 15 45 Oct. 15–Dec. 4 ...... 15 45 Mississippi ...... Sept. 3–Nov. 11 ...... 15 45 Ohio ...... Sept. 1–Nov. 9 ...... 15 45 Tennessee: ...... Sept. 1–Nov. 9 ...... 15 45 Wisconsin:. North Zone ...... Sept. 24–Nov. 22 ...... 15 30 South Zone ...... Oct. 1–Oct. 9 & ...... 15 30 Oct. 15–Dec. 4 ...... 15 30 Mississippi River Zone ...... Oct. 1–Oct. 7 & ...... 15 30 Oct. 15–Dec. 6 ...... 15 30 CENTRAL FLYWAY
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Limits Season dates Bag Possession
New Mexico:. Zone 1 ...... Sept. 17–Nov. 25 ...... 1 3 Zone 2 ...... Sept. 17–Nov. 25 ...... 1 3 Oklahoma ...... Sept. 1–Nov. 9 ...... 15 45 Texas ...... Sept. 10–Sept. 25 & ...... 15 45 Nov. 5–Dec. 28 ...... 15 45 PACIFIC FLYWAY
All States ...... Seasons are in aggregate with coots and listed in paragraph (e). (1) The season applies to common moorhens only. (2) In Minnesota, the daily bag limit is 15 and the possession limit is 45 coots and moorhens in the aggregate.
(b) Special Sea Duck Seasons (scoters, long-tailed ducks in the aggregate, daily bag limit. These limits may be in eiders, and long-tailed ducks in Atlantic including no more than 4 scoters, 4 addition to regular duck bag limits only Flyway). eiders, and 4 long-tailed ducks. during the regular duck season in the Within the special sea duck areas, the Possession limits are three times the special sea duck hunting areas. daily bag limit is 5 scoters, eiders, and
Limits Season dates Bag Possession
Connecticut ...... Nov. 12–Jan. 20 ...... 5 15 Delaware ...... Nov. 21–Jan. 28 ...... 5 15 Georgia ...... Nov. 19–Nov. 27 & ...... 5 15 Dec. 10–Jan. 29 ...... 5 15 Maine ...... Nov. 11–Jan. 19 ...... 5 15 Maryland ...... Nov. 5–Jan. 13 ...... 5 15 Massachusetts (1) ...... Nov. 21–Jan. 28 ...... 5 15 New Hampshire ...... Nov. 15–Jan. 13 ...... 5 15 New Jersey ...... Nov. 5–Jan. 13 ...... 5 15 North Carolina ...... Nov. 21–Jan. 28 ...... 5 15 Rhode Island ...... Nov. 24–Jan. 22 ...... 5 15 South Carolina ...... Nov. 19–Nov. 26 & ...... 5 15 Dec. 10–Jan. 29 ...... 5 15 Virginia ...... Nov. 11–Jan. 9 ...... 5 15 Note: Notwithstanding the provisions of this Part 20, the shooting of crippled waterfowl from a motorboat under power will be permitted in Con- necticut, Delaware, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia in those areas described, delineated, and designated in their respective hunting regulations as special sea duck hunting areas. (1) In Massachusetts, the daily bag limit may not include more than 1 hen eider. Possession limits are three times the daily bag limit.
(c) Early (September) Duck Seasons. Note: Unless otherwise specified, the seasons listed below are for teal only.
Limits Season dates Bag Possession
ATLANTIC FLYWAY Delaware (1) ...... Sept. 9–Sept. 27 ...... 6 18 Florida (2) ...... Sept. 17–Sept. 25 ...... 6 18 Georgia ...... Sept. 10–Sept. 25 ...... 6 18 Maryland (1) ...... Sept. 16–Sept. 30 ...... 6 18 North Carolina (1) ...... Sept. 10–Sept. 28 ...... 6 18 South Carolina (3) ...... Sept. 9–Sept. 24 ...... 6 18 Virginia (1) ...... Sept. 17–Sept. 30 ...... 6 18 MISSISSIPPI FLYWAY Alabama ...... Sept. 10–Sept. 25 ...... 6 18 Arkansas (3) ...... Sept. 10–Sept. 25 ...... 6 18 Illinois (3) ...... Sept. 3–Sept. 18 ...... 6 18 Indiana (3) ...... Sept. 3–Sept. 18 ...... 6 18 Iowa (3) ...... Sept. 3–Sept. 18 ...... 6 18 Kentucky (2) ...... Sept. 17–Sept. 25 ...... 6 18 Louisiana ...... Sept. 10–Sept. 25 ...... 6 18 Michigan ...... Sept. 1–Sept. 7 ...... 6 18 Mississippi ...... Sept. 10–Sept. 25 ...... 6 18
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Limits Season dates Bag Possession
Missouri (3) ...... Sept. 10–Sept. 25 ...... 6 18 Ohio (3) ...... Sept. 3–Sept. 18 ...... 6 18 Tennessee (2) ...... Sept. 10–Sept. 18 ...... 6 18 Wisconsin ...... Sept.1–Sept. 7 ...... 6 18 CENTRAL FLYWAY Colorado (1) ...... Sept. 10–Sept. 18 ...... 6 18 Kansas: ...... Low Plains ...... Sept. 10–Sept. 25 ...... 6 18 High Plains ...... Sept. 17–Sept. 25 ...... 6 18 Nebraska (1): Low Plains ...... Sept. 3–Sept. 18 ...... 6 18 High Plains ...... Sept. 3–Sept. 11 ...... 6 18 New Mexico ...... Sept. 17–Sept. 25 ...... 6 18 Oklahoma ...... Sept. 10–Sept. 25 ...... 6 18 Texas:. High Plains ...... Sept. 10–Sept. 25 ...... 6 18 Rest of State ...... Sept. 10–Sept. 25 ...... 6 18 (1) Area restrictions. See State regulations. (2) In Florida, Kentucky, and Tennessee, the daily bag limit for the first 5 days of the season is 6 wood ducks and teal in the aggregate, of which no more than 2 may be wood ducks. During the last 4 days of the season, the daily bag limit is 6 teal only. The possession limit is three times the daily bag limit. (3) Shooting hours are from sunrise to sunset.
(d) Special Early Canada Goose Seasons.
Limits Season dates Bag Possession
ATLANTIC FLYWAY Connecticut (1): North Zone ...... Sept. 1–Sept. 30 ...... 15 45 South Zone ...... Sept. 13–Sept. 30 ...... 15 45 Delaware ...... Sept. 1–Sept. 24 ...... 15 45 Florida ...... Sept. 3–Sept. 25 ...... 5 15 Georgia ...... Sept. 3–Sept. 25 ...... 5 15 Maine:. Northern Zone ...... Sept. 1–Sept. 24 ...... 6 18 Southern Zone ...... Sept. 1–Sept. 24 ...... 8 24 Coastal Zone ...... Sept. 1–Sept. 24 ...... 8 24 Maryland (1)(2): Eastern Unit ...... Sept. 1–Sept. 15 ...... 8 24 Western Unit ...... Sept. 1–Sept. 24 ...... 8 24 Massachusetts:. Central Zone ...... Sept. 6–Sept. 23 ...... 7 21 Coastal Zone ...... Sept. 6–Sept. 23 ...... 7 21 Western Zone ...... Sept. 6–Sept. 23 ...... 7 21 New Hampshire ...... Sept. 1–Sept. 25 ...... 5 15 New Jersey (1)(2)(3) ...... Sept. 1–Sept. 30 ...... 15 45 New York (4): Lake Champlain Zone ...... Sept. 1–Sept. 25 ...... 8 24 Northeastern Zone ...... Sept. 1–Sept. 25 ...... 15 45 East Central Zone ...... Sept. 1–Sept. 25 ...... 15 45 Hudson Valley Zone ...... Sept. 1–Sept. 25 ...... 15 45 West Central Zone ...... Sept. 1–Sept. 25 ...... 15 45 South Zone ...... Sept. 1–Sept. 25 ...... 15 45 Western Long Island Zone ...... Closed. Central Long Island Zone ...... Sept. 6–Sept. 30 ...... 15 45 Eastern Long Island Zone ...... Sept. 6–Sept. 30 ...... 15 45 North Carolina (5)(6) ...... Sept. 1–Sept. 30 ...... 15 45 Pennsylvania (7):. SJBP Zone (8) ...... Sept. 1–Sept. 24 ...... 3 9 Rest of State (9) ...... Sept. 1–Sept. 24 ...... 8 24 Rhode Island (1) ...... Sept. 1–Sept. 30 ...... 15 45 South Carolina Early-Season Hunt Unit ...... Sept. 1–Sept. 30 ...... 15 45 Vermont: Lake Champlain Zone ...... Sept. 1–Sept. 25 ...... 8 24 Interior Vermont Zone ...... Sept. 1–Sept. 25 ...... 8 24
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Limits Season dates Bag Possession
Connecticut River Zone (10) ...... Sept. 1–Sept. 25 ...... 5 15 Virginia (11) ...... Sept. 1–Sept. 25 ...... 10 30 West Virginia ...... Sept. 1–Sept. 10 ...... 5 15 CENTRAL FLYWAY North Dakota: Missouri River Zone ...... Sept. 1–Sept. 7 ...... 15 45 Remainder of State ...... Sept. 1–Sept. 15 ...... 15 45 Oklahoma ...... Sept. 10–Sept. 19 ...... 8 24 South Dakota (12) ...... Sept. 3–Sept. 30 ...... 15 45 Texas East Zone ...... Sept. 10–Sept. 25 ...... 5 15 PACIFIC FLYWAY Colorado ...... Sept. 1–Sept. 9 ...... 4 12 Idaho Zone 4 ...... Sept. 1–Sept. 15 ...... 5 15 Oregon: Northwest Permit Zone ...... Sept. 10–Sept. 18 ...... 5 15 Southwest Zone ...... Sept. 10–Sept. 14 ...... 5 15 Eastern Zone ...... Sept. 10–Sept. 14 ...... 5 15 Klamath County Zone ...... Sept. 10–Sept. 14 ...... 5 15 Harney and Lake County Zone ...... Sept. 10–Sept. 14 ...... 5 15 Malheur County Zone ...... Sept. 10–Sept. 14 ...... 5 15 Washington: Areas 1 & 3 ...... Sept. 10–Sept. 15 ...... 5 15 Areas 2A & 2B (13) ...... Sept. 3–Sept. 11 ...... 5 15 Area 4 & 5 ...... Sept. 10–Sept. 11 ...... 5 10 Wyoming: Teton County Zone ...... Sept. 1–Sept. 8 ...... 3 9 Balance of State Zone ...... Sept. 1–Sept. 8 ...... 2 6 (1) Shooting hours are one-half hour before sunrise to one-half hour after sunset. (2) The use of shotguns capable of holding more than 3 shotshells is allowed. (3) The use of electronic calls is allowed. (4) In New York, in all areas except the Northeastern and Southeastern Goose Hunting Area, shooting hours are one-half hour before sunrise to one-half hour after sunset, the use of shotguns capable of holding more than 3 shotshells is allowed, and the use of electronic calls is allowed. In the Northeastern and Southeastern Goose Hunting Areas, shooting hours are one-half hour before sunrise to one-half hour after sunset, shot- guns capable of holding more than 3 shotshells are allowed, and electronic calls are allowed only from September 1 to September 16 and Sep- tember 19 to September 25. On September 17 and September 18, shooting hours are one-half hour before sunrise to sunset, shotguns must be capable of holding no more than 3 shotshells, and electronic calls are not allowed. (5) In North Carolina, the use of unplugged guns and electronic calls is allowed in that area west of U.S. Highway 17 only. (6) In North Carolina, shooting hours are one-half hour before sunrise to one-half hour after sunset in that area west of U.S. Highway 17 only. (7) In Pennsylvania, shooting hours are one-half hour before sunrise to one-half hour after sunset from September 1 to September 16, Sep- tember 19 to September 23. On September 17 and September 24, shooting hours are one-half hour before sunrise to sunset. (8) In Pennsylvania, in the area south of SR 198 from the Ohio State line to intersection of SR 18, SR 18 south to SR 618, SR 618 south to U.S. Route 6, U.S. Route 6 east to U.S. Route 322/SR 18, U.S. Route 322/SR 18 west to intersection of SR 3013, SR 3013 south to the Crawford/Mercer County line, not including the Pymatuning State Park Reservoir and an area to extend 100 yards inland from the shoreline of the reservoir, excluding the area east of SR 3011 (Hartstown Road), the daily bag limit is 1 goose with a possession limit of 3 geese. The sea- son is closed on State Game Lands 214. However, during youth waterfowl hunting days, regular season regulations apply. (9) In Pennsylvania, in the area of Lancaster and Lebanon Counties north of the Pennsylvania Turnpike, east of SR 501 to SR 419, south of SR 419 to the Lebanon-Berks County line, west of the Lebanon-Berks County line and the Lancaster-Berks County line to SR 1053, west of SR 1053 to the Pennsylvania Turnpike I–76, the daily bag limit is 1 goose with a possession limit of 3 geese. On State Game Lands No. 46 (Middle Creek Wildlife Management Area), the season is closed. However, during youth waterfowl hunting days, regular season regulations apply. (10) In Vermont, the season in the Connecticut River Zone is the same as the New Hampshire Inland Zone season, set by New Hampshire. (11) In Virginia, shooting hours are one-half hour before sunrise to one-half hour after sunset from September 1 to September 16, and one-half hour before sunrise to sunset from September 17 to September 25 in the area east of I–95 where the September teal season is open. Shooting hours are one-half hour before sunrise to one-half hour after sunset from September 1 to September 20, and one-half hour before sunrise to sunset from September 21 to September 25 in the area west of I–95. (12) See State regulations for additional information and restrictions. (13) In Washington, in Pacific County, the daily bag and possession limit is 15 and 45 Canada geese, respectively.
(e) Waterfowl, Coots, and Pacific- The Mississippi Flyway: Includes that the Jicarilla Apache Indian Flyway Seasons for Common Moorhens. Alabama, Arkansas, Illinois, Indiana, Reservation is in the Pacific Flyway), Iowa, Kentucky, Louisiana, Michigan, North Dakota, Oklahoma, South Dakota, Definitions Minnesota, Mississippi, Missouri, Ohio, Texas, and Wyoming (east of the The Atlantic Flyway: Includes Tennessee, and Wisconsin. Continental Divide). Connecticut, Delaware, Florida, Georgia, The Central Flyway: Includes The Pacific Flyway: Includes the Maine, Maryland, Massachusetts, New Colorado (east of the Continental States of Arizona, California, Colorado Hampshire, New Jersey, New York, Divide), Kansas, Montana (Blaine, (west of the Continental Divide), Idaho, North Carolina, Pennsylvania, Rhode Carbon, Fergus, Judith Basin, Stillwater, Montana (including and to the west of Island, South Carolina, Vermont, Sweetgrass, Wheatland, and all counties Hill, Chouteau, Cascade, Meagher, and Virginia, and West Virginia. east thereof), Nebraska, New Mexico Park Counties), Nevada, New Mexico (east of the Continental Divide except (the Jicarilla Apache Indian Reservation
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and west of the Continental Divide), ATLANTIC FLYWAY Harlequin Ducks: All areas of the Oregon, Utah, Washington, and Flyway-Wide Restrictions Flyway are closed to harlequin duck Wyoming (west of the Continental hunting. Divide including the Great Divide Duck Limits: The daily bag limit of 6 Merganser Limits: The daily bag limit Basin). ducks may include no more than 4 Light Geese: Includes lesser snow is 5 mergansers and may include no mallards (2 female mallards), 2 scaup, 1 more than 2 hooded mergansers. In (including blue) geese, greater snow black duck, 2 pintails, 2 canvasbacks, 1 geese, and Ross’s geese. States that include mergansers in the Dark Geese: Includes Canada geese, mottled duck, 3 wood ducks, 2 duck bag limit, the daily limit is the white-fronted geese, emperor geese, redheads, 4 scoters, 4 eiders, 4 long- same as the duck bag limit, of which brant (except in California, Oregon, tailed ducks, and 1 fulvous tree duck. only 2 may be hooded mergansers. The Washington, and the Atlantic Flyway), The possession limit is three times the possession limit is three times the daily and all other geese except light geese. daily bag limit. bag limit.
Limits Season dates Bag Possession
Connecticut Ducks and Mergansers: ...... 6 18 North Zone ...... Oct. 8–Oct. 15 & ...... Nov. 10–Jan. 10 ...... South Zone ...... Oct. 8–Oct. 11 & ...... Nov. 16–Jan. 20 ...... Coots ...... Same as for Ducks ...... 15 45 Canada Geese: AFRP Unit ...... Oct. 10–Oct. 13 & ...... 5 15 Nov. 11–Nov. 30 & ...... 5 15 Dec. 10–Feb. 15 ...... 5 15 NAP H-Unit ...... Oct. 8–Oct. 15 & ...... 3 9 Nov. 10–Jan. 21 ...... 3 9 AP Unit ...... Oct. 10–Oct. 13 & ...... 3 9 Nov. 23–Jan. 14 ...... 3 9 Special Season ...... Jan. 25–Feb. 15 ...... 5 15 Light Geese: North Zone ...... Oct. 1–Jan. 14 & ...... 25 Feb. 21–Mar. 10 ...... 25 South Zone ...... Oct. 1–Dec. 1 & ...... 25 Jan. 7–Mar. 10 ...... 25 Brant: North Zone ...... Nov. 14–Jan. 10 ...... 2 6 South Zone ...... Nov. 24–Jan. 20 ...... 2 6 Delaware Ducks ...... Oct. 28–Nov. 8 & ...... 6 18 Nov. 21–Nov. 26 & ...... 6 18 Dec. 9–Jan. 28 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Nov. 21–Nov. 26 & ...... 2 6 Dec. 16–Feb. 4 ...... 2 6 Light Geese (1) ...... Oct. 5–Feb. 4 ...... 25 Feb. 11 ...... 25 Brant ...... Dec. 3–Jan. 28 ...... 2 6 Florida Ducks ...... Nov. 19–Nov. 27 & ...... 6 18 Dec. 10–Jan. 29 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Nov. 19–Nov. 27 & ...... 5 15 Dec. 1–Jan. 30 ...... 5 15 Light Geese ...... Same as for Ducks ...... 15 Georgia Ducks ...... Nov. 19–Nov. 27 & ...... 6 18 Dec. 10–Jan. 29 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Oct. 8–Oct. 23 & ...... 5 15 Nov. 19–Nov. 27 & ...... 5 15 Dec. 10–Jan. 29 ...... 5 15 Same as for Canada Geese ...... Light Geese ...... Geese ...... 5 15 Brant ...... Closed ...... Maine Ducks (2): ...... 6 18 North Zone ...... Sept. 26–Dec. 3.
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Limits Season dates Bag Possession
South Zone ...... Oct. 1–Oct. 15 & ...... Nov. 1–Dec. 24. Coastal Zone ...... Oct. 1–Oct. 15 & ...... Nov. 11–Jan. 4. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 5 15 Canada Geese: North Zone ...... Oct. 1–Dec. 21 ...... 3 9 South Zone ...... Oct. 1–Oct. 27 & ...... 3 9 Nov. 1–Dec. 24 ...... 3 9 Coastal Zone ...... Oct. 1–Oct. 27 & ...... 3 9 Nov. 11–Jan. 4 ...... 3 9 Oct. 1–Jan. 31 ...... 25 Light Geese. Brant: North Zone ...... Sept. 26–Dec. 3 ...... 2 6 South Zone ...... Oct. 1–Oct. 15 & ...... 2 6 Nov. 1–Dec. 24 ...... 2 6 Coastal Zone ...... Oct. 1–Oct. 15 & ...... 2 6 Nov. 11–Jan. 4 ...... 2 6 Maryland Ducks and Mergansers (3) ...... Oct. 15–Oct. 22 & ...... 6 18 Nov. 12–Nov. 25 & ...... 6 18 Dec. 13–Jan. 28 ...... 6 18 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: RP Zone ...... Nov. 19–Nov. 25 & ...... 5 15 Dec. 13–Mar. 8 ...... 5 15 AP Zone ...... Nov. 19–Nov. 25 & ...... 2 6 Dec. 16–Feb. 4 ...... 2 6 Light Geese ...... Oct. 1–Nov. 25 & ...... 25 Dec. 12–Feb. 4 ...... 25 Feb. 11 ...... 25 Brant ...... Nov. 8–Nov. 25 & ...... 2 6 Dec. 12–Jan. 31 ...... 2 6 Massachusetts Ducks (4): ...... 6 18 Western Zone ...... Oct. 10–Nov. 26 & ...... Dec. 5–Dec. 24. Central Zone ...... Oct. 11–Nov. 26 & ...... Dec. 12–Jan. 2. Coastal Zone ...... Oct. 14–Oct. 22 & ...... Nov. 17–Jan. 16. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: NAP Zone. Central Zone ...... Oct. 11–Nov. 26 & ...... 3 9 Dec. 12–Jan. 13 ...... 3 9 (Special season) ...... Jan. 16–Feb. 4 ...... 5 15 Coastal Zone ...... Oct. 14–Oct. 22 & ...... 3 9 Nov. 17–Jan. 27 ...... 3 9 (Special season) (5) ...... Jan. 28–Feb. 15 ...... 5 15 AP Zone ...... Oct. 10–Nov. 26 & ...... 3 9 Dec. 5–Dec. 13 ...... 3 9 Light Geese: Western Zone ...... Oct. 10–Nov. 26 & ...... 15 45 Dec. 5–Dec. 13 ...... 15 45 Central Zone ...... Oct. 11–Nov. 26 & ...... 15 45 Dec. 12–Jan. 13 ...... 15 45 Jan. 16–Feb. 4 ...... 15 45 Coastal Zone (5) ...... Oct. 14–Oct. 22 & ...... 15 45 Nov. 17–Jan. 27 ...... 15 45 Jan. 28–Feb. 15 ...... 15 45 Brant:. Western & Central Zone ...... Closed ...... Coastal Zone ...... Nov. 21–Jan. 28 ...... 2 6 New Hampshire Ducks: ...... 6 18 Northern Zone ...... Oct. 4–Dec. 2 ...... Inland Zone ...... Oct. 4–Nov. 6 & ...... Nov. 22–Dec. 17 ......
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Limits Season dates Bag Possession
Coastal Zone ...... Oct. 5–Oct. 16 & ...... Nov. 22–Jan. 8 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: Northern Zone ...... Oct. 4–Dec. 12 ...... 3 9 Inland Zone ...... Oct. 4–Nov. 6 & ...... 3 9 Nov. 22–Dec. 27 ...... 3 9 Coastal Zone ...... Oct. 5–Oct. 16 & ...... 3 9 Nov. 22–Jan. 18 ...... 3 9 Light Geese: Northern Zone ...... Oct. 4–Dec. 12 ...... 25 Inland Zone ...... Oct. 4–Dec. 27 ...... 25 Coastal Zone ...... Oct. 5–Jan. 18 ...... 25 Brant: Northern Zone ...... Oct. 4–Dec. 2 ...... 2 6 Inland Zone ...... Oct. 4–Nov. 6 & ...... 2 6 Nov. 22–Dec. 17 ...... 2 6 Coastal Zone ...... Oct. 5–Oct. 16 & ...... 2 6 Nov. 22–Jan. 8 ...... 2 6 New Jersey Ducks: ...... 6 18 North Zone ...... Oct. 8–Oct. 15 & ...... Nov. 5–Jan. 5 ...... South Zone ...... Oct. 22–Oct. 29 & ...... Nov. 12–Jan. 12 ...... Coastal Zone ...... Nov. 10–Nov. 12 & ...... Nov. 24–Jan. 28 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada and White-fronted Geese: North Zone ...... Nov. 12–Nov. 26 & ...... 3 9 Dec. 10–Jan. 21 ...... 3 9 South Zone ...... Nov. 12–Nov. 26 & ...... 3 9 Dec. 10–Jan. 21 ...... 3 9 Coastal Zone ...... Nov. 10–Nov. 12 & ...... 5 15 Nov. 24–Feb. 15 ...... 5 15 Light Geese: Special Season Zone ...... Jan. 23–Feb. 15 ...... 5 15 North Zone ...... Oct. 17–Feb. 15 ...... 25 South Zone ...... Oct. 17–Feb. 15 ...... 25 Coastal Zone ...... Oct. 17–Feb. 15 ...... 25 Brant: North Zone ...... Oct. 8–Oct. 15 & ...... 1 3 Nov. 5–Jan. 5 ...... 1 3 South Zone ...... Oct. 22–Oct. 29 & ...... 1 3 Nov. 12–Jan. 12 ...... 1 3 Coastal Zone ...... Nov. 10–Nov. 12 & ...... 1 3 Nov. 24–Jan. 28 ...... 1 3 New York Ducks and Mergansers: ...... 6 18 Long Island Zone ...... Nov. 24–Nov. 27 & ...... Dec. 5–Jan. 29 ...... Lake Champlain Zone ...... Oct. 12–Oct. 16 & ...... Oct. 29–Dec. 22 ...... Northeastern Zone ...... Oct. 8–Oct. 30 & ...... Nov. 5–Dec. 11 ...... Southeastern Zone ...... Oct. 1–Oct. 10 & ...... Nov. 12–Dec. 31 ...... Western Zone ...... Oct. 22–Dec. 4 & ...... Dec. 31–Jan. 15 ...... Coots ...... Same as for Ducks ...... 15 45 Canada Geese: Western Long Island (AFRP) ...... Oct. 8–Oct. 23 & ...... 8 24 Nov. 24–Nov. 27 & ...... 8 24 Dec. 5–Feb. 27 ...... 8 24 Central Long Island (NAP–L) ...... Nov. 24–Nov. 27 & ...... 3 9 Dec. 5–Feb. 8 ...... 3 9 Eastern Long Island (NAP–H) ...... Nov. 24–Feb. 1 ...... 3 9 Lake Champlain (AP) Zone ...... Oct. 12–Nov. 30 ...... 3 9 Northeast (AP) Zone ...... Oct. 22–Nov. 14 & ...... 3 9 Nov. 16–Dec. 11 ...... 3 9
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Limits Season dates Bag Possession
East Central (AP) Zone ...... Oct. 22–Nov. 18 & ...... 3 9 Dec. 3–Dec. 24 ...... 3 9 Hudson Valley (AP) Zone ...... Nov. 5–Nov. 17 & ...... 3 9 Dec. 3–Jan. 8 ...... 3 9 West Central (AP) Zone ...... Oct. 22–Nov. 24 & ...... 3 9 Dec. 31–Jan. 15 ...... 3 9 South (AFRP) ...... Oct. 22–Dec. 17 & ...... 5 15 Dec. 31–Jan. 15 & ...... 5 15 Mar. 4–Mar. 10 ...... 5 15 Light Geese (6): Long Island Zone ...... Nov. 24–Mar. 10 ...... 25 Lake Champlain Zone ...... Oct. 12–Dec. 31 & ...... 25 Feb. 15–Mar. 10 ...... 25 Northeastern Zone ...... Oct. 1–Jan. 15 ...... 25 Southeastern Zone ...... Oct. 1–Jan. 15 ...... 25 Western Zone ...... Oct. 1–Jan. 15 ...... 25 Brant: Long Island Zone ...... Nov. 24–Nov. 27 & ...... 2 6 Dec. 5–Jan. 29 ...... 2 6 Lake Champlain Zone ...... Oct. 5–Dec. 3 ...... 2 6 Northeastern Zone ...... Oct. 1–Nov. 29 ...... 2 6 Southeastern Zone ...... Oct. 1–Nov. 29 ...... 2 6 Western Zone ...... Oct. 1–Nov. 29 ...... 2 6 North Carolina Ducks (7) ...... Oct. 5–Oct. 8 & ...... 6 18 Nov. 12–Dec. 3 & ...... 6 18 Dec. 17–Jan. 28 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: RP Hunt Zone ...... Oct. 5–Oct. 15 & ...... 5 15 Nov. 12–Dec. 3 & ...... 5 15 Dec. 17–Feb. 11 ...... 5 15 SJBP Hunt Zone ...... Oct. 5–Nov. 4 & ...... 5 15 Nov. 12–Dec. 31 ...... 5 15 Northeast Hunt Zone (8) ...... Jan. 13–Jan. 28 ...... 1 3 Light Geese ...... Oct. 11–Feb. 11 ...... 25 Brant ...... Dec. 17–Jan. 28 ...... 1 3 Pennsylvania Ducks: ...... 6 18 North Zone ...... Oct. 8–Nov. 19 & ...... Dec. 20–Jan. 14 ...... South Zone ...... Oct. 15–Oct. 22 & ...... Nov. 22–Jan. 21 ...... Northwest Zone ...... Oct. 8–Dec. 10 ...... Dec. 27–Dec. 31 ...... Lake Erie Zone ...... Oct. 31–Jan. 7 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: Eastern (AP) Zone ...... Nov. 15–Nov. 26 & ...... 3 9 Dec. 17–Jan. 31 ...... 3 9 SJBP Zone ...... Oct. 8–Nov. 26 & ...... 3 9 Dec. 12–Jan. 20 ...... 3 9 Resident (RP) Zone ...... Oct. 22–Nov. 26 & ...... 5 15 Dec. 17–Jan. 14 & ...... 5 15 Feb. 1–Feb. 28 ...... 5 15 Light Geese: Eastern (AP) Zone ...... Oct. 1–Jan. 31 ...... 25 SJBP Zone ...... Oct. 1–Jan. 20 ...... 25 Resident (RP) Zone ...... Oct. 27–Feb. 28 ...... 25 Brant ...... Oct. 8–Dec. 16 ...... 2 6 Rhode Island Ducks ...... Oct. 7–Oct. 10 & ...... 6 18 Nov. 23–Nov. 27 & ...... 6 18 Dec. 3–Jan. 22 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Nov. 19–Nov. 27 & ...... 3 9 Dec. 3–Jan. 30 ...... 3 9 Special season ...... Feb. 4–Feb. 10 ...... 5 15 Light Geese ...... Oct. 16–Jan. 30 ...... 25
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Limits Season dates Bag Possession
Brant ...... Dec. 4–Jan. 22 ...... 2 6 Ducks (9)(10) ...... Nov. 12 & ...... 6 18 Nov. 19–Nov. 26 & ...... 6 18 Dec. 10–Jan. 29 ...... 6 18 Mergansers (11) ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada and White-fronted Geese (12) ...... Nov. 19–Nov. 26 & ...... 5 15 Dec. 10–Jan. 29 & ...... 5 15 Feb. 12–Feb. 27 ...... 5 15 Light Geese ...... Nov. 19–Nov. 26 & ...... 25 Dec. 10–Jan. 29 & ...... 25 Feb. 12–Feb. 27 ...... 25 Brant ...... Nov. 19–Nov. 26 & ...... 2 6 Dec. 10–Jan. 29 ...... 2 6 Vermont Ducks: ...... 6 18 Lake Champlain Zone ...... Oct. 12–Oct 16 & ...... Oct. 29–Dec. 22 ...... Interior Zone ...... Oct. 12–Dec. 10 ...... Connecticut River Zone ...... Oct. 4–Nov. 6 & ...... Nov. 22–Dec. 17 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: Lake Champlain Zone ...... Oct. 12–Nov. 30 ...... 3 9 Interior Zone ...... Oct. 12–Nov. 30 ...... 3 9 Connecticut River Zone ...... Oct. 4–Nov. 6 & ...... 3 9 Nov. 22–Dec. 27 ...... 3 9 Light Geese: Lake Champlain Zone ...... Oct. 12–Dec. 31 & ...... 25 Feb. 15–Mar. 10 ...... 25 Interior Zone ...... Oct. 12–Dec. 31 & ...... 25 Feb. 15–Mar. 10 ...... 25 Connecticut River Zone ...... Oct. 4–Dec. 27 ...... 25 Brant: Lake Champlain Zone ...... Oct. 5–Dec. 3 ...... 2 6 Interior Zone ...... Oct. 5–Dec. 3 ...... 2 6 Connecticut River Zone ...... Oct. 4–Nov. 6 & ...... 2 6 Nov. 22–Dec. 17 ...... 2 6 Virginia Ducks (13) ...... Oct. 7–Oct. 10 & ...... 6 18 Nov. 16–Nov. 27 & ...... 6 18 Dec. 17–Jan. 29 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: Eastern (AP) Zone ...... Nov. 16–Nov. 27 & ...... 2 6 Dec. 23–Jan. 29 ...... 2 6 Western (SJBP) Zone ...... Nov. 16–Nov. 27 & ...... 3 9 Dec. 19–Jan. 14 & ...... 3 9 (Special season) ...... Jan. 15–Feb. 15 ...... 5 15 Western (RP) Zone ...... Nov. 16–Nov. 27 & ...... 5 15 Dec. 17–Feb. 22 ...... 5 15 Light Geese ...... Oct. 17–Jan. 31 ...... 25 Brant ...... Nov. 16–Nov. 27 & ...... 2 6 Dec. 17–Jan. 29 ...... 2 6 West Virginia Ducks (14) ...... Oct. 1–Oct. 8 & ...... 6 18 Nov. 7–Nov. 12 & ...... 6 18 Dec. 14–Jan. 28 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 30 Canada Geese ...... Oct. 1–Oct. 15 & ...... 5 15 Nov. 7–Nov. 12 & ...... 5 15 Dec. 1–Jan. 28 ...... 5 15 Light Geese ...... Same as for Canada Geese ...... 5 15 Brant ...... Nov. 30–Jan. 28 ...... 1 3 (1) In Delaware, the Bombay Hook National Wildlife Refuge (NWR) snow goose season is open Mondays, Wednesdays, and Fridays only. (2) In Maine, the daily bag limit may include no more than 4 of any species, with no more than 12 of any one species in possession. The sea- son for Barrow’s goldeneye is closed. (3) In Maryland, the black duck season is closed October 15 through October 22. Additionally, the daily bag limit of 6 ducks may include no more than 5 sea ducks, of which no more than 4 may be scoters, eiders, or long-tailed ducks.
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(4) In Massachusetts, the daily bag limit may include no more than 4 of any single species in addition to the flyway-wide bag restrictions. (5) In Massachusetts, the January 23 to February 13 portion of the season in the Coastal Zone is restricted to that portion of the Coastal Zone north of the Cape Cod Canal. (6) In New York, the use of electronic calls and shotguns capable of holding more than 3 shotshells are allowed for hunting of light geese on any day when all other waterfowl hunting seasons are closed. (7) In North Carolina, the season is closed for black ducks October 5 through October 8 and November 12 through November 18. The daily bag limit for black and mottled ducks is combined with no more than 1 allowed in the daily bag. (8) In North Carolina, a permit is required to hunt Canada geese in the Northeast Hunt Zone. (9) In South Carolina, the daily bag limit of 6 may not exceed 1 black-bellied whistling duck, and either 1 black duck or 1 mottled duck in the aggregate. (10) In South Carolina, on November 12, only hunters 17 years of age or younger can hunt ducks, coots, and mergansers. The youth must be accompanied by a person at least 21 years of age who is properly licensed, including State and Federal waterfowl stamps. Youth who are 16 or 17 years of age who hunt on this day are not required to have a State license or State waterfowl stamp but must possess a Federal waterfowl stamp and migratory bird permit. (11) In South Carolina, the daily bag limit for mergansers may include no more than 1 hooded merganser. (12) In South Carolina, the daily bag limit may include no more than 2 white-fronted geese. (13) In Virginia, the season is closed for black ducks October 7 through October 10. (14) In West Virginia, the daily bag limit may include no more than 4 long-tailed ducks, and the season is closed for eiders, whistling ducks, and mottled ducks.
MISSISSIPPI FLYWAY duck, 2 pintails, 2 canvasbacks, 2 States that include mergansers in the redheads, 3 scaup, and 3 wood ducks. duck bag limit, the daily limit is the Flyway-wide Restrictions The possession limit is three times the same as the duck bag limit, of which Duck Limits: The daily bag limit of 6 daily bag limit. only 2 may be hooded mergansers. The ducks may include no more than 4 Merganser Limits: The daily bag limit possession limit is three times the daily mallards (no more than 2 of which may is 5 mergansers and may include no bag limit. be females), 1 mottled duck, 1 black more than 2 hooded mergansers. In
Limits Season dates Bag Possession
Alabama Ducks: ...... 6 18 North Zone ...... Nov. 25–Nov. 26 & ...... Dec. 3–Jan. 29 ...... South Zone ...... Same as North Zone ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Dark Geese (1)(2): SJBP Zone ...... Sept. 1–Sept 30 & ...... 5 15 Nov. 25–Nov. 26 & ...... 5 15 Dec. 3–Jan. 29 ...... 5 15 North Zone ...... Same as SJBP Zone ...... 5 15 South Zone ...... Same as SJBP Zone ...... 5 15 Light Geese: SJBP Zone ...... Same as for Dark Geese ...... 5 15 North Zone ...... Same as for Dark Geese ...... 5 15 South Zone ...... Same as for Dark Geese ...... 5 15 Arkansas Ducks ...... Nov. 19–Nov. 27 & ...... 6 18 Dec. 8–Dec. 23 & ...... 6 18 Dec. 26–Jan. 29 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 10 Coots ...... Same as for Ducks ...... 5 10 Canada Geese ...... Sept. 1–Sept. 30 & ...... 5 15 Nov. 16–Dec. 2 & ...... 3 9 Dec. 4–Jan. 29 ...... 3 9 White-fronted Geese ...... Nov. 16–Dec. 2 & ...... 2 4 Dec. 4–Jan. 29 ...... 2 4 Brant ...... Closed ...... — — Light Geese ...... Same as for White-fronted Geese ...... 20 — Illinois Ducks: ...... 6 18 North Zone ...... Oct. 15–Dec. 13 ...... Central Zone ...... Oct. 22–Dec. 20 ...... South Central Zone ...... Nov. 11–Jan. 9 ...... South Zone ...... Nov. 24–Jan. 22 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: North Zone ...... Sept. 1–Sept. 15 & ...... 5 15 Oct. 15–Jan. 12 ...... 2 6 Central Zone ...... Sept. 1–Sept. 15 & ...... 5 15 Oct. 22–Oct. 30 & ...... 2 6 Nov. 12–Jan. 31 ...... 2 6
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Limits Season dates Bag Possession
South Central Zone ...... Sept. 1–Sept. 15 & ...... 2 6 Nov. 11–Jan. 31 ...... 2 6 South Zone ...... Sept. 1–Sept. 15 & ...... 2 6 Nov. 24–Jan. 31 ...... 2 6 White-fronted Geese: North Zone ...... Oct. 17–Jan. 12 ...... 2 6 Central Zone ...... Nov. 5–Jan. 31 ...... 2 6 South Central Zone ...... Nov. 11–Jan. 31 ...... 2 6 South Zone ...... Nov. 24–Jan. 31 ...... 2 6 Light Geese: North Zone ...... Oct. 15–Jan. 12 ...... 20 — Central Zone ...... Oct. 22–Jan. 31 ...... 20 — South Central Zone ...... Nov. 11–Jan. 31 ...... 20 — South Zone ...... Nov. 24–Jan. 31 ...... 20 — Brant ...... Same as for Light Geese ...... 1 3 Indiana Ducks: ...... 6 18 North Zone ...... Oct. 22–Dec. 11 & ...... Dec. 24–Jan. 1 ...... Central Zone ...... Oct. 29–Nov. 6 & ...... Nov. 19–Jan. 8 ...... South Zone ...... Oct. 29–Nov. 6 & ...... Nov. 26–Jan. 15. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Dark Geese (1)(3): North Zone ...... Sept. 3–Sept. 11 & ...... 5 15 Oct. 22–Nov. 20 & ...... 5 15 Dec. 10–Feb. 12 ...... 5 15 Central Zone ...... Sept. 3–Sept. 11 & ...... 5 15 Oct. 29–Nov. 6 & ...... 5 15 Nov. 19–Feb. 12 ...... 5 15 South Zone ...... Sept. 3–Sept. 18 & Oct. 29–Nov. 6 & Nov. 26–Feb. 5 15 12. 5 15 5 15 Light Geese: North Zone ...... Same as for Dark Geese ...... 20 — Central Zone ...... Same as for Dark Geese ...... 20 — South Zone ...... Same as for Dark Geese ...... 20 — Iowa Ducks: ...... 6 18 North Zone ...... Sept. 24–Oct. 2 & ...... Oct. 15–Dec. 4 ...... Missouri River Zone ...... Oct. 8–Oct. 9 & ...... Oct. 22–Dec 18 ...... South Zone ...... Oct. 1–Oct. 5 & ...... Oct. 22–Dec 15 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Dark Geese (1): Cedar Falls/Waterloo ...... Sept. 3–Sept. 11 ...... 5 15 Des Moines ...... Sept. 3–Sept. 11 ...... 5 15 Cedar Rapids/Iowa City ...... Sept. 3–Sept. 11 ...... 5 15 North Zone (4) ...... Sept. 24–Oct. 9 & ...... 5 15 Oct. 15–Oct. 31 & ...... 5 15 Nov. 1–Jan. 4 ...... 5 15 Missouri River Zone (4) ...... Oct. 8–Oct. 16 & ...... 5 15 Oct. 22–Oct. 31 & ...... 5 15 Nov. 1–Jan. 18 ...... 5 15 South Zone (4) ...... Oct. 1–Oct. 9 & ...... 5 15 Oct. 22–Oct. 31 & ...... 5 15 Nov. 1–Jan. 18 ...... 5 15 Light Geese: North Zone ...... Sept. 24–Oct. 9 & ...... 20 — Oct. 15–Jan. 13 ...... 20 — Missouri River Zone ...... Oct. 8–Oct. 16 & ...... 20 — Oct. 22–Jan. 27 ...... 20 — South Zone ...... Oct. 1–Oct. 9 & ...... 20 — Oct. 22–Jan. 27 ...... 20 — Kentucky Ducks: ...... 6 18
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Limits Season dates Bag Possession
West Zone ...... Nov. 24–Nov. 27 & ...... Dec. 5–Jan. 29 ...... East Zone ...... Same as West Zone ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Sept. 16–Sept. 30 & ...... 5 15 Nov. 24–Feb. 15 ...... 3 9 White-fronted Geese ...... Nov. 24–Feb. 15 ...... 2 6 Brant ...... Nov. 24–Feb. 15 ...... 1 3 Light Geese ...... Nov. 24–Feb. 15 ...... 20 60 Louisiana Ducks: ...... 6 18 West Zone ...... Nov. 12–Dec. 4 & ...... Dec. 17–Jan. 22 ...... East Zone (including Catahoula Lake) ...... Nov. 19–Dec. 4 & ...... Dec. 17–Jan. 29 ...... Coastal Zone ...... Nov. 12–Dec. 4 & ...... Dec. 17–Jan. 22 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Nov. 5–Dec. 4 & ...... 3 9 Dec. 17–Jan. 31 ...... 3 9 White-fronted Geese ...... Nov. 5–Dec. 4 & ...... 2 6 Dec. 17–Feb. 12 ...... 2 6 Brant ...... Closed ...... — — Light Geese ...... Same as for White-fronted Geese ...... 20 — Michigan Ducks: ...... 6 18 North Zone ...... Sept. 24–Nov. 20 & ...... Nov. 26–Nov. 27 ...... Middle Zone ...... Oct. 1–Nov. 27 & ...... Dec. 17–Dec. 18 ...... South Zone ...... Oct. 8–Dec. 4 & ...... Dec. 31–Jan. 1 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: North Zone ...... Sept. 1–Sept. 30 & ...... 5 15 Oct. 1–Dec. 16 ...... 3 9 Middle Zone ...... Sept. 1–Sept. 30 & ...... 5 15 Oct. 1–Dec. 14 & ...... 3 9 Dec. 17–Dec. 18 ...... 3 9 South Zone:. Muskegon Wastewater GMU ...... Oct. 15–Nov. 12 & ...... 3 9 Dec. 3–Dec. 20 ...... 3 9 Allegan County GMU ...... Sept. 1–Sept. 7 & ...... 5 15 Nov. 5–Dec. 23 & ...... 3 9 Dec. 26–Feb. 12 ...... 3 9 Saginaw County GMU ...... Sept. 1–Sept. 25 & ...... 5 15 Oct. 8–Dec. 4 & ...... 3 9 Dec. 31–Jan. 1 & ...... 3 9 Jan. 21–Feb. 11 ...... 3 9 Tuscola/Huron GMU ...... Sept. 1–Sept. 25 & ...... 5 15 Oct. 8–Dec. 4 & ...... 3 9 Dec. 31–Jan. 1 & ...... 3 9 Jan. 21–Feb. 11 ...... 3 9 Remainder of South Zone ...... Sept. 1–Sept. 25 & ...... 5 15 Oct. 8–Dec. 4 & ...... 3 9 Dec. 31–Jan. 1 & ...... 3 9 Jan. 21–Feb. 11 ...... 3 9 White-fronted Geese: North Zone ...... Same as for Canada Geese ...... 1 3 Middle Zone ...... Same as for Canada Geese ...... 1 3 South Zone:. Muskegon Wastewater GMU ...... Same as for Canada Geese ...... 1 3 Allegan County GMU ...... Same as for Canada Geese ...... 1 3 Saginaw County GMU ...... Sept. 1–Sept. 25 & ...... 1 3 Oct. 8–Dec. 4 & ...... 1 3 Dec. 31–Jan. 1 ...... 1 3 Tuscola/Huron GMU ...... Sept. 1–Sept. 25 & ...... 1 3 Oct. 8–Dec. 4 & ...... 1 3 Dec. 31–Jan. 1 ...... 1 3
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Limits Season dates Bag Possession
Remainder of South Zone ...... Sept. 1–Sept. 25 & ...... 1 3 Oct. 8–Dec. 4 & ...... 1 3 Dec. 31–Jan. 1 ...... 1 3 Light Geese: North Zone ...... Same as for Canada Geese ...... 20 — Middle Zone ...... Same as for Canada Geese ...... 20 — South Zone:. Muskegon Wastewater GMU ...... Same as for Canada Geese ...... 20 — Allegan County GMU ...... Same as for Canada Geese ...... 20 — Saginaw County GMU ...... Same as for White-fronted Geese ...... 20 — Tuscola/Huron GMU ...... Same as for White-fronted Geese ...... 20 — Remainder of South Zone ...... Sept. 1–Sept. 25 & ...... 20 — Oct. 8–Dec. 4 & ...... 20 — Dec. 31–Jan. 1 ...... 20 — Brant: North Zone ...... Same as for White-fronted Geese ...... 1 3 Middle Zone ...... Same as for White-fronted Geese ...... 1 3 South Zone ...... Same as for White-fronted Geese ...... 1 3 Minnesota Ducks: ...... 6 18 North Zone ...... Sept. 24–Nov. 22 ...... Central Zone ...... Sept. 24–Oct. 2 & ...... Oct. 8–Nov. 27 ...... South Zone ...... Sept. 24–Oct. 2 & ...... Oct. 15–Dec. 4 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots (5) ...... Same as for Ducks ...... 15 45 Dark Geese (1): North Zone (6) ...... Sept. 3–Sept. 18 & ...... 5 15 Sept. 24–Dec. 23 ...... 5 15 Central Zone (6) ...... Sept. 3–Sept. 18 & ...... 5 15 Sept. 24–Oct. 2 & ...... 5 15 Oct. 8–Dec. 28 ...... 5 15 South Zone (6) ...... Sept. 3–Sept. 18 & ...... 5 15 Sept. 24–Oct. 2 & ...... 5 15 Oct. 15–Jan. 4 ...... 5 15 Light Geese: North Zone ...... Same as for Dark Geese ...... 20 60 Central Zone ...... Same as for Dark Geese ...... 20 60 South Zone ...... Same as for Dark Geese ...... 20 60 Mississippi Ducks ...... Nov. 25–Nov. 27 & ...... 6 18 Dec. 2–Dec. 4 & ...... 6 18 Dec. 7–Jan. 29 ...... 6 18 Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Sept. 1–Sept 30 & ...... 5 15 Nov. 12–Nov. 27 & ...... 3 9 Dec. 15–Jan. 29 & ...... 3 9 Feb. 4–Feb. 15 ...... 3 9 White-fronted Geese ...... Nov. 12–Nov. 27 & ...... 3 9 Dec. 15–Jan. 29 & ...... 3 9 Feb. 4–Feb. 15 ...... 3 9 Brant ...... Same as for White-fronted Geese ...... 1 3 Light Geese ...... Same as for White-fronted Geese ...... 20 – Missouri Ducks and Mergansers: ...... 6 18 North Zone ...... Oct. 29–Dec. 27 ...... Middle Zone ...... Nov. 5–Jan. 3 ...... South Zone ...... Nov. 24–Jan. 22 ...... Coots ...... Same as for Ducks ...... 15 45 Canada Geese and Brant: North Zone ...... Oct. 1–Oct. 9 & ...... 3 9 Nov. 11–Feb. 6 ...... 3 9 Middle Zone ...... Same as North Zone ...... 3 9 South Zone ...... Same as North Zone ...... 3 9 White-fronted Geese: North Zone ...... Nov. 11–Feb. 6 ...... 2 6 Middle Zone ...... Same as North Zone ...... 2 6 South Zone ...... Same as North Zone ...... 2 6 Light Geese: North Zone ...... Nov. 11–Feb. 6 ...... 20 —
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Limits Season dates Bag Possession
Middle Zone ...... Same as North Zone ...... 20 — South Zone ...... Same as North Zone ...... 20 — Ohio Ducks (7): ...... 6 18 Lake Erie Marsh Zone ...... Oct. 15–Oct. 30 & ...... Nov. 12–Dec. 25 ...... North Zone ...... Oct. 22–Nov. 6 & ...... Nov. 19–Jan. 1 ...... South Zone ...... Oct. 22–Nov. 6 & ...... Dec. 17–Jan. 29 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Dark Geese (1)(8): Lake Erie Goose Zone ...... Sept. 3–Sept. 11 & ...... 5 15 Oct. 15–Oct. 30 & ...... 3 9 Nov. 12–Dec. 25 & ...... 3 9 Jan. 7–Feb. 11 ...... 3 9 North Zone ...... Sept. 3–Sept. 11 & ...... 5 15 Oct. 22–Nov. 6 & ...... 3 9 Nov. 19–Jan. 1 & ...... 3 9 Jan. 7–Feb. 11 ...... 3 9 Pymatuning ...... Sept. 3–Sept. 11 & ...... 3 9 Oct. 22–Nov. 6 & ...... 3 9 Nov. 19–Jan. 1 & ...... 3 9 Jan. 7–Jan. 30 ...... 3 9 South Zone ...... Sept. 3–Sept. 11 & ...... 3 9 Oct. 22–Nov. 6 & ...... 3 9 Nov. 24–Feb. 11 ...... 3 9 Light Geese: Lake Erie Goose Zone ...... Oct. 15–Oct. 30 & ...... 10 30 Nov. 12–Dec. 25 & ...... 10 30 Jan. 7–Feb. 11 ...... 10 30 North Zone ...... Oct. 22–Nov. 6 & ...... 10 30 Nov. 19–Jan. 1 & ...... 10 30 Jan. 7–Feb. 11 ...... 10 30 Pymatuning ...... Oct. 22–Nov. 6 & ...... 10 30 Nov. 19–Jan. 1 & ...... 10 30 Jan. 7–Jan. 30 ...... 10 30 South Zone ...... Oct. 22–Nov. 6 & ...... 10 30 Nov. 24–Feb. 11 ...... 10 30 Tennessee Ducks: ...... 6 18 Reelfoot Zone ...... Nov. 12–Nov. 13 & ...... Dec. 3–Jan. 29 ...... Rest of State ...... Nov. 26–Nov. 27 & ...... Dec. 3–Jan. 29 ...... Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: Northwest Zone ...... Oct. 8–Oct. 12 & ...... 5 15 Nov. 12–Nov. 13 & ...... 5 15 Dec. 3–Feb. 11 ...... 5 15 Rest of State ...... Oct. 8–Oct. 25 & ...... 5 15 Nov. 26–Nov. 27 & ...... 5 15 Dec. 3–Jan. 29 ...... 5 15 White-fronted Geese: Northwest Zone ...... Nov. 26–Nov. 27 & ...... 2 6 Dec. 3–Feb. 11 ...... 2 6 Rest of State ...... Same as Northwest Zone ...... 2 6 Brant: Northwest Zone ...... Nov. 26–Nov. 27 & ...... 2 6 Dec. 3–Jan. 29 ...... 2 6 Rest of State ...... Same as Northwest Zone ...... 2 6 Light Geese ...... Same as White-fronted Geese ...... 20 — Wisconsin Ducks (7): ...... 6 18 North Zone ...... Sept. 24–Nov. 22 ...... South Zone ...... Oct. 1–Oct. 9 & ...... Oct. 15–Dec. 4 ...... Mississippi River Zone ...... Oct. 1–Oct. 7 & ...... Oct. 15–Dec. 6 ...... Mergansers ...... Same as for Ducks ...... 5 15
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Limits Season dates Bag Possession
Coots ...... Same as for Ducks ...... 15 45 Canada Geese: North Zone (9) ...... Sept. 1–Sept. 15 ...... 5 15 Sept. 16–Dec. 16 ...... 2 6 South Zone (9) ...... Sept. 1–Sept. 15 ...... 5 15 Sept. 16–Oct. 9 & ...... 2 6 Oct. 15–Dec. 21 ...... 2 6 Horicon Zone (9)(10) ...... Sept. 1–Sept. 15 ...... 5 15 Sept. 16–Dec. 16 ...... 2 6 Mississippi River Zone (9) ...... Sept. 1–Sept. 15 ...... 5 15 Oct. 1–Oct. 7 & ...... 2 6 Oct. 15–Jan. 5 ...... 2 6 White-fronted Geese: North Zone ...... Sept. 16–Dec. 16 ...... 2 6 South Zone ...... Sept. 16–Oct. 9 & ...... 2 6 Oct. 15–Dec. 21 ...... 2 6 Horicon Zone ...... Sept. 16–Dec. 16 ...... 1 3 Mississippi River Zone ...... Oct. 1–Oct. 7 & ...... 2 6 Oct. 15–Jan. 5 ...... 2 6 Brant ...... Same as for White-fronted Geese ...... 1 3 Light Geese ...... Same as for White-fronted Geese ...... 20 — (1) The dark goose daily bag limit is an aggregate daily bag limit for Canada geese, white-fronted geese, and brant. (2) In Alabama, the dark goose daily bag limit may not include more than 1 brant. Additionally, after September 30, the daily bag may not in- clude more than 3 Canada geese. (3) In Indiana, the dark goose daily bag limit of 5 may include 5 Canada geese during September 3 through September 11 in the North and Central Zones and during September 3 through September 18 in the South Zone. During all other open season segments, the dark goose daily bag limit may not include more than 3 Canada geese. The possession limit is three times the daily bag limit. (4) In Iowa, in the North Zone, the Missouri River Zone, and the South Zone, the dark goose daily bag limit may not include more than 2 Can- ada geese until November 1. After such time, the daily bag limit may not include more than 3 Canada geese. The possession limit is three times the daily bag limit. (5) In Minnesota, the daily bag limit is 15 and the possession limit is 45 coots and moorhens in the aggregate. (6) In Minnesota, the dark goose daily bag limit may not include more than 1 brant. Additionally, after September 18, the daily bag may not in- clude more than 3 Canada geese. (7) In Ohio and Wisconsin, the daily bag limit may include no more than one female mallard. (8) In Ohio, only Canada geese may be taken during the September 3 to September 11 portion of the dark goose season. (9) In Wisconsin, a special Early Canada goose season permit is required for September 1 through 15. (10) In Wisconsin, a state tag is required for Canada goose harvest. See State regulations for further information.
CENTRAL FLYWAY 2 redheads, 3 scaup, and 3 wood ducks. States that include mergansers in the Flyway-Wide Restrictions The possession limit is three times the duck bag limit, the daily limit is the daily bag limit. same as the duck bag limit, of which Duck Limits: The daily bag limit is 6 Merganser Limits: The daily bag limit only 2 may be hooded mergansers. The ducks, which may include no more than possession limit is three times the daily 5 mallards (2 female mallards), 1 is 5 mergansers and may include no bag limit. mottled duck, 2 pintails, 2 canvasbacks, more than 2 hooded mergansers. In
Limits Season dates Bag Possession
Colorado Ducks: ...... 6 18 Southeast Zone ...... Oct. 26–Jan. 29. Northeast Zone: ...... Oct. 8–Nov. 28 & Dec. 17–Jan. 29. Mountain/Foothills Zone: ...... Oct. 1–Nov. 28 & Dec. 24–Jan. 29. Coots ...... Same as for Ducks ...... 15 45 Mergansers ...... Same as for Ducks ...... 5 15 Dark Geese: Northern Front Range Unit ...... Oct. 1–Oct. 19 & ...... 5 15 Nov. 19–Feb. 12 ...... 5 15 South Park/San Luis Valley Unit ...... Same as N. Front Range Unit ...... 5 15 North Park Unit ...... Same as N. Front Range Unit ...... 5 15 Rest of State in Central Flyway ...... Oct. 31–Feb. 12 ...... 5 15 Light Geese: Northern Front Range Unit ...... Oct. 29–Feb. 12 ...... 50 South Park/San Luis Valley Unit ...... Same as N. Front Range Unit ...... 50 North Park Unit ...... Same as N. Front Range Unit ...... 50 Rest of State in Central Flyway ...... Same as N. Front Range Unit ...... 50 Kansas
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Limits Season dates Bag Possession
Ducks: ...... 6 18 High Plains ...... Oct. 8–Jan. 1 & Jan. 20–Jan. 29. Low Plains:. Early Zone ...... Oct. 8–Dec. 4 & Dec. 17–Jan. 1. Late Zone ...... Oct. 29–Jan. 1 & Jan. 21–Jan. 29. Southeast Zone ...... Nov. 12–Jan. 1 & Jan. 7–Jan. 29. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Dark Geese (1) ...... Oct. 29–Jan. 1 & ...... 6 18 Jan. 4–Feb. 12 ...... 6 18 White–fronted Geese ...... Oct. 29–Jan. 1 & ...... 2 6 Jan. 21–Feb. 12 ...... 2 6 Light Geese ...... Oct. 29–Jan. 1 & ...... 50 Jan. 4–Feb. 12 ...... 50 Montana Ducks and Mergansers (2): ...... 6 18 Zone 1 ...... Oct. 1–Jan. 5. Zone 2 ...... Oct. 1–Oct. 9 & Oct. 22–Jan. 17. Coots ...... Same as for Ducks ...... 15 45 Dark Geese: Zone 1 ...... Oct. 1–Jan. 8 & ...... 5 15 Jan. 14–Jan. 18 ...... 5 15 Zone 2 ...... Oct. 1–Oct. 9 & ...... 5 15 Oct. 22–Jan. 25 ...... 5 15 Light Geese: Zone 1 ...... Same as for Dark Geese ...... 20 60 Zone 2 ...... Same as for Dark Geese ...... 20 60 Nebraska Ducks: ...... 6 18 Zone 1 ...... Oct. 15–Dec. 27.. Zone 2: Low Plains ...... Oct. 8–Dec. 20. High Plains ...... Oct. 8–Dec. 20 & Jan. 9–Jan. 29. Zone 3: Low Plains ...... Oct. 27–Jan. 8. High Plains ...... Oct. 27–Jan. 8 & Jan. 9–Jan. 29. Zone 4 ...... Oct. 8–Dec. 20. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese: Niobrara Unit ...... Oct. 31–Feb. 12 ...... 5 15 East Unit ...... Oct. 31–Feb. 12 ...... 5 15 North Central Unit ...... Oct. 8–Jan. 20 ...... 5 15 Platte River Unit ...... Oct. 31–Feb. 12 ...... 5 15 Panhandle Unit ...... Oct. 31–Feb. 12 ...... 5 15 White-fronted Geese ...... Oct. 8–Dec. 11 & ...... 3 9 Feb. 4–Feb. 12 ...... 3 9 Light Geese ...... Oct. 8–Jan. 1 & ...... 50 Jan. 25–Feb. 12 ...... 50 New Mexico Ducks and Mergansers (3): ...... 6 18 North Zone ...... Oct. 15–Jan. 18. South Zone ...... Oct. 26–Jan. 29. Coots ...... Same as for Ducks ...... 15 45 Dark Geese (4): Middle Rio Grande Valley Unit (4) ...... Dec. 24–Jan. 17 ...... 2 2 Rest of State ...... Oct. 15–Jan. 29 ...... 5 15 Light Geese ...... Oct. 15–Jan. 29 ...... 50 North Dakota Ducks (2): ...... 6 18 High Plains ...... Sept. 24–Dec. 4 & ...... Dec. 10–Jan. 1. Remainder of State ...... Sept. 24–Dec. 4. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45
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Limits Season dates Bag Possession
Canada Geese (5):. Missouri River Zone ...... Sept. 24–Dec. 30 ...... 5 15 Rest of State ...... Sept. 24–Dec. 22 ...... 8 24 White–fronted Geese ...... Sept. 24–Dec. 4 ...... 3 9 Light Geese ...... Sept. 24–Jan. 1 ...... 50 Oklahoma Ducks: ...... 6 18 High Plains ...... Oct. 15–Jan. 11. Low Plains: Zone 1: ...... Oct. 29–Nov. 27 & ...... Dec. 10–Jan. 22. Zone 2: ...... Nov. 5–Nov. 27 & Dec. 10–Jan. 29. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese ...... Oct. 29–Nov. 27 & ...... 8 24 Dec. 10–Feb. 12 ...... 8 24 White-fronted Geese ...... Oct. 29–Nov. 27 & ...... 2 6 Dec. 10–Feb. 5 ...... 2 6 Light Geese ...... Oct. 29–Nov. 27 & ...... 50 Dec. 10–Feb. 12 ...... 50 South Dakota Ducks (2): ...... 6 18 High Plains ...... Oct. 8–Dec. 20 & Dec. 21–Jan. 12. Low Plains: North Zone ...... Sept. 24–Dec. 6. Middle Zone ...... Sept. 24–Dec. 6. South Zone ...... Oct. 8–Dec. 20. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Canada Geese:. Unit 1 ...... Oct. 1–Dec. 18 ...... 8 24 Unit 2 ...... Oct. 31–Feb. 12 ...... 4 12 Unit 3 ...... Oct. 15–Dec. 18 & ...... 4 12 Jan. 14–Jan. 22 ...... 4 12 White-fronted Geese ...... Sept. 24–Dec. 18 ...... 2 6 Light Geese ...... Sept. 24–Dec. 18 ...... 50 Texas Ducks (6): ...... 6 18 High Plains ...... Oct. 29–Oct. 30 & ...... Nov. 4–Jan. 29. Low Plains: North Zone ...... Nov. 12–Nov. 27 & ...... Dec. 3–Jan. 29. South Zone ...... Nov. 5–Nov. 27 & Dec. 10–Jan. 29. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Dark Geese (7): East Tier: South Zone ...... Nov. 5–Jan. 29 ...... 5 15 North Zone ...... Nov. 5–Jan. 29 ...... 5 15 West Tier ...... Nov. 5–Feb. 5 ...... 5 15 Light Geese: East Tier: South Zone ...... Nov. 5–Jan. 29 ...... 20 North Zone ...... Nov. 5–Jan. 29 ...... 20 West Tier ...... Nov. 5–Feb. 5 ...... 20 Wyoming Ducks (2)(8): ...... 6 18 Zone C1 ...... Oct. 1–Oct. 18 & Oct. 29–Jan. 15. Zone C2 ...... Sept. 24–Dec. 4 & ...... Dec. 10–Jan. 3. Zone C3 ...... Same as Zone C2. Mergansers ...... Same as for Ducks ...... 5 15 Coots ...... Same as for Ducks ...... 15 45 Dark Geese: Zone G1A (8) ...... Oct. 1–Oct. 18 & ...... 2 6 Nov. 18–Feb. 12 ...... 4 12
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Limits Season dates Bag Possession
Zone G1 ...... Oct. 1–Oct. 18 & ...... 5 15 Oct. 29–Nov. 27 & ...... 5 15 Dec. 3–Jan. 28 ...... 5 15 Zone G2 ...... Sept. 24–Dec. 4 & ...... 5 15 Dec. 10–Jan. 11 ...... 5 15 Zone G3 ...... Same as Zone G2 ...... 5 15 Light Geese ...... Oct. 1–Dec. 29 & ...... 10 30 Jan. 29–Feb. 12 ...... 10 30 (1) In Kansas, the dark geese daily bag limit includes Canada geese, brant, and all other geese except white-fronted geese and light geese. (2) In Montana, during the first 9 days of the duck season, and in North Dakota, South Dakota, and Wyoming, during the first 16 days of the duck season, the daily bag and possession limit may include 2 and 6 additional blue-winged teal, respectively. (3) In New Mexico, Mexican-like ducks are included in the aggregate with mallards. (4) In New Mexico, the season for dark geese is closed in Bernalillo, Sandoval, Sierra, and Valencia Counties. In the Middle Rio Grande Valley Unit, a limited season is established. See State regulations for additional information. (5) In North Dakota, see State regulations for additional shooting hour restrictions. (6) In Texas, the daily bag limit is 6 ducks, which may include no more than 5 mallards (only 2 of which may be females), 2 redheads, 3 wood ducks, 3 scaup, 2 canvasbacks, 2 pintails, and 1 dusky duck (mottled duck, Mexican-like duck, black duck and their hybrids). The season for dusky ducks is closed the first 5 days of the season in all zones. The possession limit is three times the daily bag limit. (7) In Texas, the daily bag limit for dark geese is 5 in the aggregate and may include no more than 2 white-fronted geese. Possession limits are three times the daily bag limits. (8) See State regulations for additional restrictions.
Pacific Flyway mergansers) may include no more than Coot and Common Moorhen Limits: Flyway-Wide Restrictions 2 female mallards, 2 pintails, 2 Daily bag and possession limits are in redheads, 3 scaup, and 2 canvasbacks. the aggregate for the two species. Duck and Merganser Limits: The daily The possession limit is three times the bag limit of 7 ducks (including daily bag limit.
Limits Season dates Bag Possession
Arizona Ducks (1): ...... 7 21 North Zone: Scaup ...... Oct. 22–Jan. 15 ...... 3 9 Other Ducks ...... Oct. 7–Jan. 15 ...... 7 21 South Zone: Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 21–Jan. 29 ...... 7 21 Coots and Moorhens ...... Same as for Other Ducks ...... 25 75 Dark Geese: North Zone ...... Oct. 7–Jan. 15 ...... 4 12 South Zone ...... Oct. 21–Jan. 29 ...... 4 12 Light Geese ...... Same as for Dark geese ...... 10 30 California Ducks: ...... 7 21 Northeastern Zone: Scaup ...... Oct. 8–Dec. 4 & ...... 3 9 Dec. 24–Jan. 20 ...... 3 9 Other Ducks ...... Oct. 8–Jan. 20 ...... 7 21 Colorado River Zone: Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 21–Jan. 29 ...... 7 21 Southern Zone: Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 22–Jan. 29 ...... 7 21 Southern San Joaquin Valley Zone: Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 22–Jan. 29 ...... 7 21 Balance of State Zone: Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 22–Jan. 29 ...... 7 21 Coots and Moorhens ...... Same as for Other Ducks ...... 25 25 Canada Geese (2) (3): Northeastern Zone (4) ...... Oct. 8–Jan. 15 ...... 10 30 Colorado River Zone ...... Oct. 21–Jan. 29 ...... 4 12 Southern Zone ...... Oct. 22–Jan. 29 ...... 3 9 Balance of State Zone ...... Oct. 1–Oct. 5 & ...... 10 30 Oct. 22–Jan. 29 ...... 10 30
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Limits Season dates Bag Possession
North Coast Special Management Area ...... Nov. 7–Jan. 29 & ...... 10 30 Feb. 18–Mar. 10 ...... 10 30 White-fronted Geese (2): Northeastern Zone ...... Oct. 8–Jan. 15 & ...... 10 30 Mar. 4–Mar.8 ...... 10 30 Colorado River Zone ...... Oct. 21–Jan. 29 ...... 4 12 Southern Zone ...... Oct. 22–Jan. 29 ...... 3 9 Balance of State Zone ...... Oct. 22–Jan. 29 & ...... 10 30 Feb. 11–Feb. 15 ...... 10 30 Sacramento Valley Special Management Area ...... Oct. 22–Dec. 21 ...... 3 9 Light Geese: Northeastern Zone ...... Oct. 8–Dec. 4 & ...... 15 45 Jan. 7–Jan. 20 & ...... 15 45 Feb. 6–Mar.10 ...... 15 45 Colorado River Zone ...... Oct. 21–Jan. 29 ...... 10 30 Southern Zone ...... Oct. 22–Jan. 29 ...... 15 45 Imperial County Special Management Area ...... Nov. 5–Jan. 29 & ...... 15 45 Feb. 4–Feb. 20 ...... 15 45 Balance of State Zone ...... Oct. 22–Jan. 29 & ...... 15 45 Feb. 11–Feb. 15 ...... 15 45 Brant: Northern Zone ...... Nov. 8–Dec. 14 ...... 2 6 Balance of State Zone ...... Nov. 9–Dec. 15 ...... 2 6 Colorado Ducks: ...... 7 21 East Zone: Scaup ...... Oct. 1–Dec. 25 ...... 3 9 Other Ducks ...... Oct. 1–Jan. 13 ...... 7 21 West Zone: Scaup ...... Oct. 1–Oct. 19 & ...... 3 9 Nov. 5–Jan. 10 ...... 3 9 Other Ducks ...... Oct. 1–Oct. 19 & ...... 7 21 Nov. 5–Jan. 29 ...... 7 21 Coots ...... Same as for Other Ducks ...... 25 75 Dark Geese: East Zone ...... Oct. 1–Jan. 4 ...... 4 12 West Zone ...... Oct. 1–Oct. 10 & ...... 4 12 Nov. 5–Jan. 29 ...... 4 12 Light Geese: ...... Same as for Canada Geese ...... 10 30 Idaho Ducks: ...... 7 21 Zone 1: Scaup ...... Oct. 22–Jan. 13 ...... 3 9 Other Ducks ...... Oct. 1–Jan. 13 ...... 7 21 Zone 2: Scaup ...... Oct. 22–Jan. 13 ...... 3 9 Other Ducks ...... Oct. 1–Jan. 13 ...... 7 21 Zone 3: Scaup ...... Nov. 5–Jan. 27 ...... 3 9 Other Ducks ...... Oct. 15–Jan. 27 ...... 7 21 Coots ...... Same as for Other Ducks ...... 25 75 Canada Geese and Brant: Zone 1 ...... Oct. 1–Jan. 13 ...... 4 12 Zone 2 ...... Oct. 1–Jan. 13 ...... 4 12 Zone 3 ...... Oct. 15–Jan. 27 ...... 4 12 Zone 4 ...... Oct. 1–Dec. 29 ...... 4 12 White-fronted Geese: Zone 1 ...... Oct. 1–Jan. 13 ...... 10 30 Zone 2 ...... Oct. 1–Jan. 13 ...... 10 30 Zone 3 ...... Nov. 7–Feb. 19 ...... 10 30 Light Geese: Zone 1 ...... Oct. 1–Jan. 13 ...... 20 60 Zone 2 ...... Oct. 29–Jan. 13 & ...... 20 60 Feb. 11–Mar. 10 ...... 20 60 Zone 3 ...... Nov. 26–Mar. 10 ...... 20 60 Zone 4 (5) ...... Oct. 1–Jan. 13 ...... 20 60 Montana Ducks: ...... 7 21 Scaup ...... Oct. 1–Dec. 25 ...... 3 9 Other Ducks ...... Oct. 1–Jan. 8 & ...... 7 21 Jan. 14–Jan. 18 ...... 7 21 Coots ...... Same as for Other Ducks ...... 25 25
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Limits Season dates Bag Possession
Dark Geese (6) ...... Oct. 1–Jan. 8 & ...... 4 12 Jan. 14–Jan. 18 ...... 4 12 Light Geese (6) ...... Same as for Dark Geese ...... 20 60 Nevada Ducks: ...... 7 21 Northeast Zone: Scaup ...... Oct. 1–Oct. 23 & ...... 3 9 Oct. 26–Dec. 27 ...... 3 9 Other Ducks ...... Oct. 1–Oct. 23 & ...... 7 21 Oct. 26–Jan. 15 ...... 7 21 Northwest Zone: Scaup ...... Oct. 29–Jan. 22 ...... 3 9 Other Ducks ...... Oct. 8–Oct. 23 & ...... 7 21 Oct. 26–Jan. 22 ...... 7 21 South Zone: Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 15–Oct. 23 & ...... 7 21 Oct. 26–Jan. 29 ...... 7 21 Moapa Valley Special Management Area (7): Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 29–Jan. 29 ...... 7 21 Coots and Moorhens ...... Same as for Other Ducks ...... 25 75 Canada Geese and Brant: Northeast Zone ...... Same as for Other Ducks ...... 4 12 Northwest Zone ...... Same as for Other Ducks ...... 4 12 South Zone ...... Same as for Other Ducks ...... 4 12 Moapa Valley Special Management Area (7): Same as for Other Ducks ...... 4 12 White-fronted Geese: Northeast Zone ...... Same as for Canada Geese ...... 10 30 Northwest Zone ...... Same as for Canada Geese ...... 10 30 South Zone ...... Same as for Canada Geese ...... 10 30 Moapa Valley Special Management Area (7): Same as for Canada Geese ...... 10 30 Light Geese (8): Northeast Zone ...... Oct. 26–Jan. 15 & ...... 20 60 Feb. 25–Mar. 10 ...... 20 60 Northwest Zone ...... Oct. 26–Jan. 22 & ...... 20 60 Feb. 25–Mar. 10 ...... 20 60 South Zone ...... Oct. 15–Oct. 23 & ...... 20 60 Oct. 26–Jan. 29 ...... 20 60 Moapa Valley Special Management Area (7): Oct. 29–Jan. 29 ...... 20 60 New Mexico Ducks: ...... 7 21 Scaup ...... Oct. 17–Jan. 10 ...... 3 9 Other Ducks ...... Oct. 17–Jan. 29 ...... 7 21 Coots and Moorhens ...... Same as for Other Ducks ...... 25 75 Canada Geese and Brant: North Zone ...... Sept. 24–Oct. 9 & ...... 3 9 Oct. 31–Jan. 29 ...... 3 9 South Zone ...... Oct. 15–Jan. 29 ...... 3 9 White-fronted Geese: North Zone ...... Same as for Canada Geese ...... 10 30 South Zone ...... Same as for Canada Geese ...... 10 30 Light Geese: North Zone ...... Same as for Canada Geese ...... 20 60 South Zone ...... Same as for Canada Geese ...... 20 60 Oregon Ducks: ...... 7 21 Zone 1: Columbia Basin Unit: Scaup ...... Nov. 5–Jan. 29 ...... 3 9 Other Ducks ...... Oct. 15–Oct. 30 & ...... 7 21 Nov. 2–Jan. 29 ...... 7 21 Rest of Zone 1 ...... Same as Columbia Basin Unit. Zone 2: Scaup ...... Oct. 8–Nov. 27 & ...... 3 9 Nov. 30–Jan. 3 ...... 3 9 Other Ducks ...... Oct. 8–Nov. 27 & ...... 7 21 Nov. 30–Jan. 22 ...... 7 21 Coots ...... Same as for Other Ducks ...... 25 75 Canada Geese: Northwest Permit Zone (9) (10) ...... Oct. 22–Oct. 30 & ...... 4 12 Nov. 19–Jan. 9 & ...... 4 12 Feb. 4–Mar. 10 ...... 4 12
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Limits Season dates Bag Possession
Tillamook County Management Area ...... Closed. Southwest Zone ...... Oct. 15–Oct. 30 & ...... 4 12 Nov. 7–Jan. 29 ...... 4 12 South Coast Zone ...... Oct. 1–Nov. 27 & ...... 6 18 Dec. 17–Jan. 11 & ...... 6 18 Feb. 18–Mar. 10 ...... 6 18 Eastern Zone ...... Oct. 15–Oct. 30 & ...... 4 12 Nov. 7–Jan. 29 ...... 4 12 Klamath County Zone ...... Oct. 8–Nov. 27 & ...... 4 12 Dec. 12–Jan. 29 ...... 4 12 Harney and Lake County Zone ...... Oct. 8–Nov. 27 & ...... 4 12 Dec. 12–Jan. 29 ...... 4 12 Malheur County Zone ...... Oct. 8–Nov. 27 & ...... 4 12 Dec. 12–Jan. 29 ...... 4 12 White-fronted Geese: Northwest Permit Zone (9) ...... Same as for Canada Geese ...... 10 30 Tillamook County Management Area ...... Closed. Southwest Zone ...... Same as for Canada Geese ...... 10 30 South Coast Zone ...... Same as for Canada Geese ...... 10 30 Eastern Zone ...... Same as for Canada Geese ...... 10 30 Klamath County Zone ...... Oct. 8–Nov. 27 & ...... 10 30 Jan. 16–Mar. 10 ...... 10 30 Harney and Lake County Zone (11) ...... Oct. 8–Nov. 27 & ...... 10 30 Jan. 16–Mar. 10 ...... 10 30 Malheur County Zone ...... Oct. 8–Nov. 27 & ...... 10 30 Jan. 16–Mar. 10 ...... 10 30 Light Geese: Northwest Permit Zone (9) ...... Same as for Canada Geese ...... 6 18 Tillamook County Management Area ...... Closed. Southwest Zone ...... Same as for Canada Geese ...... 6 18 South Coast Zone ...... Same as for Canada Geese ...... 6 18 Eastern Zone ...... Same as for Canada Geese ...... 6 18 Klamath County Zone (12) ...... Oct. 8–Nov. 27 & ...... 6 18 Jan. 16–Mar. 10 ...... 6 18 Harney and Lake County Zone (12) ...... Oct. 8–Nov. 27 & ...... 6 18 Jan. 16–Mar. 10 ...... 6 18 Malheur County Zone (12) ...... Oct. 8–Nov. 27 & ...... 6 18 Jan. 16–Mar. 10 ...... 6 18 Brant ...... Nov. 26–Dec. 11 ...... 2 6 Utah Ducks: ...... 7 21 Zone 1: Scaup ...... Oct. 1–Dec. 25 ...... 3 9 Other Ducks ...... Oct. 1–Jan. 14 ...... 7 21 Zone 2: Scaup ...... Same as Zone 1 ...... 3 9 Other Ducks ...... Same as Zone 1 ...... 7 21 Coots ...... Same as for Other Ducks ...... 25 75 Canada Geese and Brant: Northern Zone ...... Oct. 1–Jan. 14 ...... 4 12 Wasatch Front Zone ...... Oct. 1–Oct. 13 & ...... 4 12 Nov. 5–Feb. 5 ...... 4 12 Washington County Zone ...... Oct. 1–Oct. 13 & ...... 4 12 Nov. 5–Feb. 5 ...... 4 12 Balance of State Zone ...... Oct. 1–Oct. 13 & ...... 4 12 Oct. 22–Jan. 22 ...... 4 12 White-fronted Geese: Northern Zone ...... Same as for Canada Geese ...... 10 30 Wasatch Front Zone ...... Same as for Canada Geese ...... 10 30 Washington County Zone ...... Same as for Canada Geese ...... 10 30 Balance of State Zone ...... Same as for Canada Geese ...... 10 30 Light Geese: Northern Zone ...... Oct. 25–Nov. 30 & ...... 20 60 Jan. 1–Mar. 10 ...... 20 60 Wasatch Front Zone ...... Oct. 25–Nov. 30 & ...... 20 60 Jan. 1–Mar. 10 ...... 20 60 Washington County Zone ...... Same as for Wasatch County Zone 20 60 Balance of State Zone ...... Same as for Wasatch County Zone 20 60 Washington Ducks: ...... 7 21 East Zone: Scaup ...... Nov. 5–Jan. 29 ...... 3 9
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Limits Season dates Bag Possession
Other Ducks ...... Oct. 15–Oct 19 & ...... 7 21 Oct. 22–Jan. 29 ...... 7 21 West Zone (13) ...... Same as East Zone. Coots ...... Same as for Other Ducks ...... 25 75 Canada Geese (14): Area 1 (15) ...... Oct. 15–Oct. 27 & ...... 4 12 Nov. 5–Jan. 29 ...... 4 12 Area 2A (16) (17) ...... Oct. 15–Oct. 23 & ...... 4 12 Nov. 26–Jan. 22 & ...... 4 12 Feb. 11–Mar. 8 ...... 4 12 Area 2B (16) (17) ...... Oct. 15–Oct. 23 & ...... 4 12 Nov. 26–Jan. 22 & ...... 4 12 Feb. 11–Mar. 8 ...... 4 12 Area 3 (15) ...... Oct. 15–Oct. 27 & ...... 4 12 Nov. 5–Jan. 29 ...... 4 12 Area 4 (15) ...... Oct. 15–Oct. 16 & ...... 4 12 Oct. 19 & ...... 4 12 Oct. 23–Jan. 29 ...... 4 12 Area 5 (15) ...... Oct. 15–Oct. 17 & ...... 4 12 Oct. 22–Jan. 29 ...... 4 12 White-fronted Geese (14): Area 1 (15) ...... Oct. 15–Jan. 29 ...... 4 12 Area 2A (16) ...... Same as for Canada Geese ...... 4 12 Area 2B (16) ...... Same as for Canada Geese ...... 4 12 Area 3 (15) ...... Same as for Canada Geese ...... 4 12 Area 4 (15) ...... Same as for Canada Geese ...... 4 12 Area 5 (15) ...... Same as for Canada Geese ...... 4 12 Light Geese (14): Area 1 (15) ...... Oct. 15–Jan. 29 ...... 4 12 Area 2A (16) ...... Same as for Canada Geese ...... 4 12 Area 2B (16) ...... Same as for Canada Geese ...... 4 12 Area 3 (15) ...... Same as for Canada Geese ...... 4 12 Area 4 (15) ...... Same as for Canada Geese ...... 4 12 Area 5 (15) ...... Same as for Canada Geese ...... 4 12 Brant (18): Skagit County ...... Jan. 7–Jan. 22 ...... 2 6 Pacific County ...... Jan. 7–Jan. 22 ...... 2 6 Wyoming Ducks: ...... 7 21 Snake River Zone: Scaup ...... Sept. 24–Dec. 18 ...... 3 9 Other Ducks ...... Sept. 24–Jan. 6 ...... 7 21 Balance of State Zone Scaup ...... Sept. 24–Dec. 18 ...... 3 9 Other Ducks ...... Sept. 24–Jan. 6 ...... 7 21 Coots ...... Same as for Other Ducks ...... 15 45 Dark Geese ...... Sept. 24–Dec. 29 ...... 3 9 Light Geese ...... Closed. (1) In Arizona, the daily bag limit may include no more than either 2 female mallards or 2 Mexican-like ducks, or 1 of each; and not more than 6 female mallards and Mexican-like ducks, in the aggregate, may be in possession. (2) In California, the daily bag and possession limits for Canada geese and white-fronted geese are in the aggregate. (3) In California, small Canada geese are Cackling and Aleutian Canada geese, and large Canada geese are Western and Lesser Canada geese. (4) In California, in the Northeastern Zone, the daily bag limit may include no more than 2 large Canada geese. (5) In Idaho, the season on light geese is closed in Fremont and Teton Counties. (6) In Montana, check State regulations for special seasons and exceptions in Freezeout Lake WMA; Canyon Ferry; Flathead; and Deer Lodge County. (7) In Nevada, youth 17 years of age or younger are allowed to hunt on October 15 on the Moapa Valley portion of Overton Wildlife Manage- ment Area. Youth must be accompanied by an adult who is at least 18 years of age. (8) In Nevada, there is no open season on light geese in Ruby Valley within Elko and White Pine Counties. In addition, the season is closed in Kirch WMA, Mason Valley WMA, and Scripps WMA and Washoe State Park from February 25 to March 9. (9) In Oregon, in the Northwest Permit Zone, see State regulations for specific dates, times, and conditions of permit hunts and closures. (10) In Oregon, in the Northwest Permit Zone, the season for Dusky Canada geese is closed. (11) In Oregon, in Lake County, the daily bag and possession limit for white-fronted geese is 1 and 3, respectively. (12) In Oregon, in the Klamath County, the Harney and Lake County, and Malhuer County Zones, during January 30 through March 10, the daily bag limit for light geese is 20. The possession limit is three times the daily bag limit. (13) In Washington, the daily bag limit in the West Zone may include no more than 2 scoters, 2 long-tailed ducks, and 2 goldeneyes, with the possession limit three times the daily bag limit. The daily bag and possession limit, and the season limit, for harlequins is 1. (14) In Washington, the daily bag limit is 4 Canada geese, white-fronted geese, or light geese, singly or in the aggregate. Possession limit is three times the daily bag limit. (15) In Washington, in Area 4, hunting is allowed only on Saturdays, Sundays, Wednesdays, and certain holidays. In State Areas 1, 3, and 5, hunting is allowed everyday. See State regulations for details, including shooting hours. (16) In Washington, in Areas 2A and 2B, see State regulations for specific dates, times, and conditions of permit hunts and closures. (17) In Washington, in Areas 2A and 2B, the season for Dusky Canada geese is closed.
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(18) In Washington, brant may be hunted in Skagit and Pacific Counties only; see State regulations for specific dates.
(f) Youth Waterfowl Hunting Days. cannot duck hunt but may participate in hunters. However, youth hunters may The following seasons are open only other open seasons. not be over the age of 17. Youth hunters 16 years of age and older must possess to youth hunters. Youth hunters must be Definition accompanied into the field by an adult a Federal Migratory Bird Hunting and at least 18 years of age. This adult Youth Hunters: States may use their Conservation Stamp (also known as established definition of age for youth Federal Duck Stamp).
Season dates
ATLANTIC FLYWAY: Connecticut ...... Ducks, geese, mergansers, and coots ...... Oct. 1 & Nov. 5 Delaware ...... Ducks, geese, brant, mergansers, and coots ...... Oct. 22 & Feb. 11 Florida ...... Ducks, mergansers, coots, moorhens, and geese ...... Feb. 4 & 5 Georgia ...... Ducks, geese, mergansers, coots, moorhens, and gallinules ...... Nov. 12 & 13 Maine ...... Ducks, geese, mergansers, and coots: North Zone ...... Sept. 17 & Dec. 10 South Zone ...... Sept. 24 & Oct. 22 Coastal Zone ...... Sept. 24 & Nov. 5 Maryland (1)(2) ...... Ducks, coots, light geese, Canada geese, sea ducks, and brant ...... Nov. 5 & Feb. 11 Massachusetts ...... Ducks, mergansers, coots, and geese ...... Sept. 24 & Oct. 8 New Hampshire ...... Ducks, geese, mergansers, and coots ...... Sept. 24 & 25 New Jersey ...... Ducks, geese, mergansers, coots, moorhens, and gallinules: North Zone ...... Oct. 1 & Feb. 4 South Zone ...... Oct. 15 & Feb. 4 Coastal Zone ...... Nov. 5 & Feb. 11 New York (3) ...... Ducks, mergansers, coots, brant, and Canada geese: Long Island Zone ...... Nov. 12 & 13 Lake Champlain Zone ...... Sept. 24 & 25 Northeastern Zone ...... Sept. 17 & 18 Southeastern Zone ...... Sept. 17 & 18 Western Zone ...... Oct. 1 & 2 North Carolina ...... Ducks, mergansers, geese (4), brant, tundra swans (5), and coots ...... Feb. 4 & Feb. 11 Pennsylvania ...... Ducks, mergansers, Canada geese, coots, moorhens, brant, and gallinules: North Zone ...... Sept. 17 & 24 South Zone ...... Sept. 17 & Nov. 5 Northwest Zone ...... Sept. 17 & 24 Lake Erie Zone ...... Sept. 17 & Oct. 22 Rhode Island ...... Ducks, mergansers, geese, and coots ...... Oct. 22 & 23 South Carolina ...... Ducks, geese, mergansers, and coots ...... Feb. 4 & 11 Vermont ...... Ducks, geese, mergansers and coots ...... Sept. 24 & 25 Virginia ...... Ducks, mergansers, coots, tundra swans (5), and Canada geese (6) ...... Oct. 22 & Feb. 4 West Virginia ...... Ducks, geese, mergansers, coots, and gallinules ...... Sept. 17 & Nov. 5 MISSISSIPPI FLYWAY: Alabama ...... Ducks, mergansers, coots, geese, moorhens, and gallinules ...... Nov. 19 & Feb. 4 Arkansas ...... Ducks, geese, mergansers, coots, moorhens, and gallinules ...... Dec. 3 & Feb. 4 Illinois ...... Ducks, geese, mergansers, and coots ...... North Zone ...... Oct. 8 & 9 Central Zone ...... Oct. 15 & 16 South Central Zone ...... Nov. 5 & 6 South Zone ...... Nov. 12 & 13 Indiana ...... Ducks, mergansers, coots, moorhens, gallinules, and geese: North Zone ...... Oct. 15 & 16 Central Zone ...... Oct. 22 & 23 South Zone ...... Oct. 22 & 23 Iowa Ducks, geese, mergansers, coots ...... North Zone ...... Sept. 17 & 18 Missouri River Zone ...... Oct. 1 & 2 South Zone ...... Sept. 24 & 25 Kentucky ...... Ducks, geese, mergansers, coots, moorhens, and gallinules: West Zone ...... Feb. 4 & 5 East Zone ...... Nov. 5 & 6 Louisiana ...... Ducks, mergansers, coots, moorhens, gallinules, and geese: West Zone ...... Nov. 5 & Jan. 28 East Zone ...... Nov. 12 & Feb. 4 Coastal Zone ...... Nov. 5 & Nov. 6 Michigan ...... Ducks, geese, mergansers, coots, moorhens, and gallinules ...... Sept. 10 & 11 Minnesota ...... Ducks, geese, mergansers, coots, moorhens, and gallinules ...... Sept. 10 Mississippi ...... Ducks, mergansers, coots, moorhens, gallinules, and geese ...... Nov. 19 & Feb. 4 Missouri ...... Ducks, coots, mergansers, moorhens, gallinules, and geese: North Zone ...... Oct. 22 & 23 Middle Zone ...... Oct. 29 & 30 South Zone ...... Nov. 19 & 20 Ohio ...... Ducks, mergansers, coots, moorhens, gallinules, and geese:
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Season dates
Lake Erie Marsh ...... Oct. 1 & 2 North Zone ...... Oct. 1 & 2 South Zone ...... Oct. 1 & 2 Tennessee ...... Ducks, mergansers, coots, moorhens, gallinules, and geese: Reelfoot Zone ...... Feb. 4 & 11 Remainder of State ...... Feb. 4 & 11 Wisconsin ...... Ducks, geese, mergansers, coots, moorhens, and gallinules ...... Sept. 17 & 18 CENTRAL FLYWAY: Colorado ...... Ducks, dark geese, mergansers, and coots: Mountain/Foothills Zone ...... Sept. 24 & 25 Northeast Zone ...... Oct. 1 & 2 Southeast Zone ...... Oct. 22 & 23 Kansas (7) ...... Ducks, geese, mergansers, and coots: High Plains ...... Oct. 1 & 2 Low Plains: Early Zone ...... Oct. 1 & 2 Late Zone ...... Oct. 22 & 23 Southeast Zone ...... Nov. 12 & 13 Montana ...... Ducks, geese, mergansers, and coots ...... Sept. 24 & 25 Nebraska ...... Ducks, geese, mergansers, and coots: Zone 1 ...... Oct. 8 & 9 Zone 2 ...... Oct. 1 & 2 Zone 3 ...... Oct. 22 & 23 Zone 4 ...... Oct. 1 & 2 New Mexico ...... Ducks, mergansers, coots, and moorhens: North Zone ...... Oct. 1 & 2 South Zone ...... Oct. 8 & 9 North Dakota ...... Ducks, geese, mergansers, and coots ...... Sept. 17 & 18 Oklahoma ...... Ducks, geese mergansers, and coots: ...... High Plains ...... Oct. 8 & 9 Low Plains: Zone 1 ...... Oct. 22 & 23 Zone 2 ...... Oct. 29 & 30 South Dakota ...... Ducks, Canada geese, mergansers, and coots ...... Sept. 17 & 18 Texas ...... Ducks, geese, mergansers, moorhens, gallinules, and coots: High Plains ...... Oct. 22 & 23 Low Plains: North Zone ...... Nov. 5 & 6 South Zone ...... Oct. 29 & 30 Wyoming ...... Ducks, geese, mergansers, and coots: Zone C1 ...... Sept. 24 & 25 Zone C2 ...... Sept. 17 & 18 Zone C3 ...... Sept. 17 & 18 PACIFIC FLYWAY: Arizona ...... Ducks, geese, mergansers, coots, and moorhens: North Zone ...... Oct. 1 & 2 South Zone ...... Feb. 4 & 5 California ...... Ducks, geese, brant, mergansers, coots, and moorhens: Northeastern Zone ...... Sept. 24 & 25 Colorado River Zone ...... Feb. 4 & 5 Southern Zone ...... Feb. 4 & 5 Southern San Joaquin Valley Zone ...... Feb. 4 & 5 Balance of State Zone ...... Feb. 4 & 5 Colorado ...... Ducks, geese, mergansers, and coots: ...... East Zone ...... Sept. 24 & 25 West Zone ...... Oct. 29 & 30 Idaho ...... Ducks, geese, mergansers, and coots: ...... Sept. 24 & 25 Montana ...... Ducks, geese, mergansers, and coots ...... Sept. 24 & 25 Nevada ...... Ducks, geese, mergansers, coots, and moorhens: Northeast Zone ...... Sept. 17 & 18 Northwest Zone ...... Sept. 24 & Feb. 4 South Zone ...... Feb. 11 & 12 New Mexico ...... Ducks, mergansers, coots, and moorhens ...... Oct. 8 & 9 Oregon ...... Ducks, geese, mergansers, and coots ...... Sept. 24 & 25 Utah ...... Ducks, dark geese, mergansers, and coots ...... Sept. 17 Washington ...... Ducks, Canada geese, mergansers, and coots ...... Sept. 17 & 18 Wyoming ...... Ducks, dark geese, mergansers, and coots ...... Sept. 17 & 18 (1) In Maryland, youth hunter(s) must be accompanied by an adult at least 21 years old and who possesses a current Maryland hunting li- cense or is exempt from the hunting license requirement. The adult accompanying the youth hunter(s) may not possess a hunting weapon and may not participate in other seasons that are open on the youth days. (2) In Maryland, the bag limit for Canada geese is 2 in the AP Zone and 5 in the RP Zone. (3) In New York, the daily bag limit for Canada geese is 3. (4) In North Carolina, the daily bag limit in the Northeast Hunt Zone may not include dark geese except by permit. (5) In North Carolina and Virginia, the daily bag limit may not include tundra swans except by permit.
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(6) In Virginia, the daily bag limit for Canada geese is 2. (7) In Kansas, the adult accompanying the youth must possess any licenses and/or stamps required by law for that individual to hunt waterfowl.
■ 7. Section 20.106 is revised to read as except as otherwise noted. Area season. The permit must be carried by follows: descriptions were published in the the permittee when exercising its March 28, 2016, Federal Register (81 FR provisions and must be presented to any § 20.106 Seasons, limits, and shooting law enforcement officer upon request. hours for sandhill cranes. 17302). The permit is not transferable or Subject to the applicable provisions of Federally authorized, State-issued permits are issued to individuals, and assignable to another individual, and the preceding sections of this part, areas may not be sold, bartered, traded, or open to hunting, respective open only the individual whose name and address appears on the permit at the otherwise provided to another person. If seasons (dates inclusive), shooting and the permit is altered or defaced in any hawking hours, and daily bag and time of issuance is authorized to take way, the permit becomes invalid. possession limits on the species sandhill cranes at the level allowed by designated in this section are as follows: the permit, in accordance with CHECK STATE REGULATIONS FOR Shooting and hawking hours are one- provisions of both Federal and State AREA DESCRIPTIONS AND ANY half hour before sunrise until sunset, regulations governing the hunting ADDITIONAL RESTRICTIONS.
Limits Season dates Bag Possession
MISSISSIPPI FLYWAY Kentucky (1) ...... Dec. 17–Jan. 15 ...... 2 2 per season Minnesota (1) NW Goose Zone ...... Sept. 10–Oct. 16 ...... 1 3 Tennessee (1)(2) ...... Dec. 3–Jan. 29 ...... 3 3 per season CENTRAL FLYWAY Colorado (1) ...... Oct. 1–Nov. 27 ...... 3 9 Kansas (1)(3)(4) ...... Nov. 9–Jan. 5 ...... 3 9 Montana: Regular Season Area (1) ...... Oct. 1–Nov. 27 ...... 3 9 per season Special Season Area (5) ...... Sept. 10–Oct. 2 ...... 2 per season New Mexico: Regular Season Area (1) ...... Oct. 29–Jan. 29 ...... 3 6 Middle Rio Grande Valley Area (5)(6) ...... Oct. 29–Oct. 30 & ...... 3 6 per season Nov. 5 & ...... 3 3 per season Nov. 26–Nov. 27 & ...... 3 6 per season Dec. 17–Dec. 18 & ...... 3 6 per season Jan. 7–Jan. 8 ...... 3 6 per season Southwest Area (5) ...... Oct. 29–Nov. 6 & ...... 3 6 per season Jan. 7–Jan. 8 ...... 3 6 per season Estancia Valley (5) ...... Oct. 29–Nov. 6 ...... 3 6 North Dakota (1): Area 1 ...... Sept. 17–Nov. 13 ...... 3 9 Area 2 ...... Sept. 17–Nov. 13 ...... 2 6 Oklahoma (1) ...... Oct. 22–Jan. 22 ...... 3 9 South Dakota (1) ...... Sept. 24–Nov. 20 ...... 3 9 Texas (1): Zone A ...... Oct. 29–Jan. 29 ...... 3 9 Zone B ...... Nov. 18–Jan. 29 ...... 3 9 Zone C ...... Dec. 17–Jan. 22 ...... 2 6 Wyoming: Regular Season (Area 7) (1) ...... Sept. 17–Nov. 13 ...... 3 9 Riverton-Boysen Unit (Area 4) (5) ...... Sept. 17–Oct. 9 ...... 1 per season Big Horn, Hot Springs, Park, and Washakie Counties (Area 6) (5) .. Sept. 17–Oct. 9 ...... 1 per season Johnson, Natrona, and Sheridan Counties (Area 8) (5) ...... Sept. 17–Oct. 9 ...... 1 per season PACIFIC FLYWAY Arizona (5)(7): Special Season Area ...... Nov. 18–Dec. 10 ...... 3 per season Idaho (5): Areas 1, 3, & 4 ...... Sept. 1–Sept. 30 ...... 2 per season Areas 2 & 5 ...... Sept. 1–Sept. 15 ...... 2 per season Montana (5)(8): Zone 1 ...... Sept. 10–Oct. 2 ...... 1 1 Zone 2 ...... Sept. 10–Oct. 2 ...... 2 2 Zone 3 ...... Sept. 10–Oct. 2 ...... 2 2 Zone 4 ...... Sept. 10–Oct. 2 ...... 1 1 Utah (5): Rich County ...... Sept. 3–Sept. 11 ...... 1 per season Cache County ...... Sept. 3–Sept. 11 ...... 1 per season East Box Elder County ...... Sept. 3–Sept. 11 ...... 1 per season Uintah County ...... Sept. 17–Oct. 16 ...... 1 per season Wyoming (5):
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Limits Season dates Bag Possession
Areas 1, 2, 3, & 5 ...... Sept. 1–Sept. 8 ...... 1 per season (1) Each person participating in the regular sandhill crane seasons must have a valid sandhill crane hunting permit in their possession while hunting. (2) In Tennessee, the shooting hours are from sunrise to 3 p.m. The season is also closed from January 13 through January 15, 2017. (3) In Kansas, shooting hours are from sunrise until sunset. (4) In Kansas, each person desiring to hunt sandhill cranes is required to pass an annual, online sandhill crane identification examination. (5) Hunting is by State permit only. See State regulations for further information. (6) In New Mexico, in the Middle Rio Grande Valley Area (Bernardo WMA and Casa Colorado WMA), the season is only open for youth hunt- ers on November 5. See State regulations for further details. (7) In Arizona, season dates are restricted in Game Management Units 30A, 30B, 31, and 32 to November 18 to 20, November 22 to 24, No- vember 26 to 28, November 30 to December 2, December 4 to 6, and December 9 to 11. December 9 to 11 is restricted to youth hunters only. In Game Management Unit 28, the season dates are restricted to November 26 to 28, November 25 to 27, November 30 to December 2, De- cember 4 to 6, December 8 to 10, and December 12 to 14. (8) In Montana, the possession limit is 2 per season.
■ 8. Section 20.107 is revised to read as Federally authorized, State-issued to another person. If the permit is follows: permits are issued to individuals, and altered or defaced in any way, the only the individual whose name and permit becomes invalid. § 20.107 Seasons, limits, and shooting hours for swans. address appears on the permit at the time of issuance is authorized to take CHECK STATE REGULATIONS FOR Subject to the applicable provisions of swans at the level allowed by the ADDITIONAL RESTRICTIONS AND the preceding sections of this part, areas DELINEATIONS OF GEOGRAPHICAL open to hunting, respective open permit, in accordance with provisions of both Federal and State regulations AREAS. SPECIAL RESTRICTIONS MAY seasons (dates inclusive), shooting and APPLY ON FEDERAL AND STATE hawking hours, and daily bag and governing the hunting season. The PUBLIC HUNTING AREAS AND possession limits on the species permit must be carried by the permittee FEDERAL INDIAN RESERVATIONS. designated in this section are as follows: when exercising its provisions and must Shooting hours are one-half hour be presented to any law enforcement NOTE: Successful permittees must before sunrise until sunset, except as officer upon request. The permit is not immediately validate their harvest by otherwise restricted by State transferable or assignable to another that method required in State regulations. Hunting is by State permit individual, and may not be sold, regulations. only. bartered, traded, or otherwise provided
Season dates Limits
ATLANTIC FLYWAY: North Carolina ...... Nov. 12–Jan. 31 ...... 1 tundra swan per permit. Virginia ...... Nov. 16–Jan 31 ...... 1 tundra swan per permit. CENTRAL FLYWAY (1): Montana ...... Oct. 1–Jan. 5 ...... 1 tundra swan per permit. North Dakota ...... Oct. 1–Jan. 1 ...... 1 tundra swan per permit. South Dakota ...... Oct. 1–Dec. 18 ...... 1 tundra swan per permit. PACIFIC FLYWAY (1): Montana (2) ...... Oct. 8–Dec. 1 ...... 1 swan per season. Nevada (3)(4) ...... Oct. 8–Jan. 8 ...... 2 swans per season. Utah (4)(5) ...... Oct. 1–Dec. 11 ...... 1 swan per season. (1) See State regulations for description of area open to swan hunting. (2) In Montana, all harvested swans must be reported by way of a bill measurement card within 3 days of harvest. (3) In Nevada, all harvested swans and tags must be checked or registered within 5 days of harvest. (4) Harvests of trumpeter swans are limited to 5 in Nevada and 10 in Utah. When it has been determined that the quota of trumpeter swans al- lotted to Nevada and Utah will have been filled, the season for taking of any swan species in the respective State will be closed by either the Di- rector upon giving public notice through local information media at least 48 hours in advance of the time and date of closing, or by the State through State regulations with such notice and time (not less than 48 hours) as they deem necessary. (5) In Utah, all harvested swans and tags must be checked or registered within 3 days of harvest.
■ 9. Section 20.109 is revised to read as Hawking hours are one-half hour PUBLIC HUNTING AREAS AND follows: before sunrise until sunset except as FEDERAL INDIAN RESERVATIONS. otherwise restricted by State § 20.109 Extended seasons, limits, and regulations. Limits: The daily bag limit may hours for taking migratory game birds by include no more than 3 migratory game falconry. Area descriptions were published in birds, singly or in the aggregate. The the March 28, 2016 (81 FR 17302) possession limit is three times the daily Subject to the applicable provisions of Federal Register. the preceding sections of this part, areas bag limit. These limits apply to falconry open to hunting, respective open CHECK STATE REGULATIONS FOR during both regular hunting seasons and seasons (dates inclusive), hawking ADDITIONAL RESTRICTIONS AND extended falconry seasons, unless hours, and daily bag and possession DELINEATIONS OF GEOGRAPHICAL further restricted by State regulations. limits for the species designated in this AREAS. SPECIAL RESTRICTIONS MAY The falconry bag and possession limits section are prescribed as follows: APPLY ON FEDERAL AND STATE are not in addition to regular season
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limits. Unless otherwise specified, include sea ducks within the special sea falconry seasons are shown below. extended falconry for ducks does not duck areas. Please consult State regulations for Although many States permit falconry details. during the gun seasons, only extended
Extended falconry dates
ATLANTIC FLYWAY: Delaware Doves ...... Jan. 16–Feb. 1 Rails ...... Nov. 10–Dec. 16 Woodcock ...... Oct. 15–Oct. 22 & Jan. 16–Mar. 10 Ducks, mergansers, and coots ...... Jan. 30–Mar. 3 Brant ...... Nov. 21–Dec. 2 & Jan. 30–Mar. 10 Florida Doves ...... Jan. 16–Feb. 1 Rails ...... Nov. 10–Dec. 16 Woodcock ...... Nov. 24–Dec. 17 & Feb. 1–Mar. 10 Common moorhens ...... Nov. 10–Dec. 14 Ducks, mergansers, light geese, and coots ...... Nov. 3–Nov. 12 & Feb. 6–Mar. 3 Georgia Ducks, geese, mergansers, coots, moorhens, gallinules, and sea ducks ...... Nov. 28–Dec. 5 Maine Ducks, mergansers, and coots (1): North Zone ...... Dec. 22–Feb. 11 South & Coastal Zones ...... Jan. 7–Feb. 28 Maryland Doves ...... Jan. 8–Jan. 24 Rails ...... Nov. 10–Dec. 16 Woodcock ...... Oct. 1–Oct. 27 & Feb. 7–Mar. 10 Ducks ...... Feb. 1–Mar. 10 Brant ...... Feb. 1–Mar. 10 Light Geese ...... Feb. 28–Mar. 10 Massachusetts Ducks, mergansers, sea ducks, and coots ...... Jan. 30–Feb. 8 New Hampshire Ducks, mergansers, and coots: Northern Zone ...... Dec. 13–Jan. 26 Inland Zone ...... Nov. 7–Nov. 21 & Dec. 28–Jan. 26 Coastal Zone ...... Jan. 25–Mar. 10 New Jersey Woodcock: North Zone ...... Oct. 1–Oct. 14 & Nov. 20–Jan. 15 South Zone ...... Oct. 1–Nov. 11 & Dec. 4–Dec. 16 & Dec. 31–Jan. 15 Ducks, mergansers, coots, and brant: North Zone ...... Jan. 17–Mar. 10 South Zone ...... Jan. 17–Mar. 10 Coastal Zone ...... Jan. 29–Mar. 10 New York Ducks, mergansers and coots: Long Island Zone ...... Nov. 1–Nov. 23 & Nov. 28–Dec. 4 & Jan. 30–Feb. 13 Northeastern Zone ...... Oct. 1–Oct. 7 & Oct. 31–Nov. 4 & Dec. 12–Jan. 13 Southeastern Zone Oct. 11–Nov. 11 & Jan. 1–Jan. 13 Western Zone Oct. 1–Oct. 21 & Dec. 5–Dec. 30 North Carolina Doves ...... Oct. 15–Oct. 31 Rails, moorhens, and gallinules ...... Dec. 3–Jan. 7 Woodcock ...... Nov. 5–Dec. 3 & Feb. 1–Feb. 28 Ducks, mergansers and coots ...... Oct. 25–Nov. 5 & Jan. 31–Feb. 18 Pennsylvania Doves ...... Oct. 10–Oct. 14 & Nov. 28–Dec. 9 Rails ...... Nov. 10–Dec. 16 Woodcock and snipe ...... Sept. 1–Oct. 14 & Nov. 28–Dec. 17 Moorhens and gallinules ...... Nov. 10–Dec. 16 Ducks, mergansers, and coots: North Zone ...... Nov. 21–Dec. 19 & Feb. 16–Mar. 10
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Extended falconry dates
South Zone ...... Oct. 24–Nov. 21 & Feb. 16–Mar. 10 Northwest Zone ...... Dec. 12–Dec. 26 & Feb. 2–Mar. 10 Lake Erie Zone ...... Jan. 18–Mar. 10 Canada Geese: SJBP Zone ...... Mar. 2–Mar. 10 AP Zone ...... Feb. 1–Mar. 10 RP Zone ...... Mar. 4–Mar. 10 South Carolina Ducks, mergansers, and coots ...... Nov. 2–Nov. 18 & Nov. 27–Dec. 9 Virginia Doves ...... Dec. 23 & Jan. 16–Jan. 31 Woodcock ...... Oct. 17–Oct. 28 & Nov. 5–Dec. 8 & Jan. 16–Jan. 31 Rails, moorhens, and gallinules ...... Nov. 19–Dec. 25 Ducks, mergansers, and coots ...... Nov. 28–Dec. 16 & Jan. 30–Feb. 10 Canada Geese: Eastern (AP) Zone ...... Dec. 17–Dec. 22 & Jan. 30–Feb. 22 Western (SJBP) Zone ...... Dec. 17–Dec. 18 & Feb. 16–Feb. 22 Brant ...... Oct. 17–Nov. 15 & Nov. 28–Dec. 16 & Jan. 30–Jan. 31 MISSISSIPPI FLYWAY: Arkansas Ducks, mergansers, and coots ...... Feb. 1–Feb. 15 Illinois Doves ...... Nov. 15–Dec. 1 Rails ...... Sept. 1–Sept. 2 & Nov. 12-Dec. 16 Woodcock ...... Sept. 1–Oct. 14 & Nov. 29–Dec. 16 Ducks, mergansers, and coots ...... Feb. 10–Mar. 10 Indiana Doves ...... Oct. 17-Oct. 31 & Jan. 9-Jan. 11 Woodcock ...... Sept. 20–Oct. 14 & Nov. 29–Jan. 4 Ducks, mergansers, and coots: North Zone ...... Sept. 27–Sept. 30 & Feb. 14–Mar. 10 Central Zone ...... Oct. 22–Oct. 28 & Feb. 17–Mar. 10 South Zone ...... Oct. 22–Oct. 28 & Feb. 17–Mar. 10 Iowa Ducks, mergansers, and coots: North Zone ...... Dec. 15–Jan. 12 Missouri River Zone ...... Dec. 15–Jan. 12 South Zone ...... Dec. 15–Jan. 12 Kentucky Ducks, mergansers, and coots ...... Nov. 28–Dec. 4 & Jan. 30–Feb. 15 Louisiana Doves ...... Sept. 15–Oct. 1 Woodcock ...... Nov. 2–Dec. 17 & Rails and moorhens: West Zone ...... Nov. 2–Nov. 11 & Jan. 5–Jan. 31 East Zone ...... Nov. 3–Nov. 11 & Jan. 5–Jan. 31 Coastal Zone ...... Nov. 2–Nov. 11 & Jan. 5–Jan. 31 Ducks: West Zone ...... Nov. 3–Nov. 11 & Dec. 5–Dec. 16 & Jan. 23–Jan. 31 East Zone ...... Nov. 3–Nov. 18 & Dec. 5–Dec. 16 & Jan. 30–Jan. 31 Coastal Zone ...... Nov. 3–Nov. 11 & Dec. 5–Dec. 16 & Jan. 23–Jan. 31 Michigan Ducks, mergansers, coots, and moorhens ...... Jan. 2–Jan. 26 & Mar. 1–Mar. 10 Minnesota Woodcock ...... Sept. 1–Sept. 23 & Nov. 8–Dec. 16 Rails and snipe ...... Nov. 8–Dec. 16 Doves ...... Nov. 30–Dec. 16 Ducks, mergansers, coots, moorhens, and gallinules ...... Dec. 17–Jan. 31 Mississippi Doves ...... Nov. 14–Nov. 22 & Jan. 16–Jan. 23 Ducks, mergansers and coots ...... Feb. 5–Mar. 5
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Extended falconry dates
Missouri Doves ...... Nov. 30–Dec. 16 Ducks, mergansers, and coots ...... Sept. 10–Sept. 25 & Feb. 10–Mar. 10 Tennessee Doves ...... Sept. 29–Oct. 9 & Oct. 31–Nov. 6 Ducks, mergansers, and coots ...... Sept. 15–Oct. 20 Wisconsin Rails, snipe, moorhens, and gallinules: North Zone ...... Sept. 1–Sept. 23 & Nov. 23–Dec. 16 South Zone ...... Sept. 1–Sept. 30 & Oct. 10–Oct. 14 & Dec. 5–Dec. 16 Mississippi River Zone ...... Sept. 1–Sept. 30 & Oct. 8–Oct. 14 & Dec. 7–Dec. 16 Woodcock ...... Sept. 1–Sept. 23 & Nov. 8–Dec. 16 Ducks, mergansers, and coots ...... Sept. 17–Sept. 18 & Jan. 13–Feb. 19 CENTRAL FLYWAY: Kansas Ducks, mergansers, and coots: Low Plains ...... Feb. 24–Mar. 10 Montana (2) Ducks, mergansers, and coots ...... Sept. 24–Sept. 30 Nebraska Ducks, mergansers, and coots: Zone 1 ...... Feb. 25–Mar. 10 Zone 2 ...... Feb. 25–Mar. 10 Zone 3 ...... Feb. 25–Mar. 10 Zone 4 ...... Feb. 25–Mar. 10 New Mexico Doves North Zone ...... Nov. 30–Dec. 4 & Dec. 24–Jan. 4 South Zone ...... Oct. 31-Nov. 7 & Nov. 24–Dec. 2 Ducks and coots ...... Sept. 17–Sept. 25 Sandhill cranes Regular Season Area ...... Oct. 15–Oct. 28 Estancia Valley Area (3) ...... Nov. 7–Dec. 27 Common moorhens ...... Nov. 26–Jan. 1 Sora and Virginia rails ...... Nov. 26–Jan. 1 North Dakota Ducks, mergansers, coots, and snipe ...... Sept. 5–Sept. 9 & Sept. 12–Sept. 16 Oklahoma Ducks, mergansers, and coots: Low Plains ...... Feb. 13–Feb. 27 South Dakota Ducks, mergansers, and coots: High Plains ...... Sept. 1–Sept. 8 Low Plains: North Zone ...... Sept. 1–Sept. 23 & Dec. 7–Dec. 16 Middle Zone ...... Sept. 1–Sept. 23 & Dec. 7–Dec. 16 South Zone ...... Sept. 15–Oct. 7 & Dec. 21–Dec. 30 Texas Doves ...... Nov. 19–Dec. 5 Rails, gallinules, and woodcock ...... Jan. 30–Feb. 12 Ducks, mergansers, and coots: Low Plains ...... Jan. 30–Feb. 12 Wyoming Doves ...... Nov. 30–Dec. 16 Rails ...... Nov. 10–Dec. 16 Ducks, mergansers, and coots Zone C1 ...... Sept. 24–Sept. 25 & Oct. 19–Oct. 26 Zone C2 & C3 ...... Sept. 17–Sept. 23 & Dec. 5–Dec. 7 PACIFIC FLYWAY: Arizona Doves ...... Sept. 16–Nov. 1 Ducks, mergansers, coots, and moorhens: North Zone ...... Jan. 30–Feb. 2 South Zone ...... Oct. 3–Oct. 6 California Ducks, mergansers, coots, and moorhens: Colorado River Zone ...... Jan. 30–Feb. 1
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Extended falconry dates
Southern Zone ...... Jan. 30–Feb. 3 Southern San Joaquin Valley Zone ...... Jan. 30–Feb. 1 Geese: Southern Zone (4) ...... Jan. 30–Feb. 3 New Mexico Doves: North Zone ...... Nov. 30–Dec. 4 & Dec. 24–Jan. 4 South Zone ...... Oct. 31–Nov. 7 & Nov. 24–Dec. 2 Oregon Doves ...... Oct. 31–Dec. 16 Band-tailed pigeons (5) ...... Sept. 1-Sept. 14 & Sept. 24–Dec. 16 Utah Doves ...... Oct. 31–Dec. 16 Band-tailed pigeons ...... Sept. 15–Dec. 16 Washington Doves ...... Oct. 31–Dec. 16 Wyoming Doves ...... Nov. 30–Dec. 16 Sora and Virginia rails ...... Nov. 10–Dec. 16 Ducks, mergansers, and coots ...... Sept. 17–Sept. 18 (1) In Maine, the daily bag and possession limits for black ducks are 1 and 3, respectively. (2) In Montana, the bag limit is 2 and the possession limit is 6. (3) In New Mexico, the bag limit for sandhill cranes in the Estancia Valley Area is 3 per day and the possession limit is 6 per season. (4) In California, in the Imperial County Special Management Area, there is no extended falconry season. (5) In Oregon, no more than 1 pigeon daily in bag or possession.
[FR Doc. 2016–17330 Filed 7–22–16; 8:45 am] BILLING CODE 4310–55–P
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Reader Aids Federal Register Vol. 81, No. 142 Monday, July 25, 2016
CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING JULY
Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. Presidential Documents 3 CFR 2...... 43019, 47005 13...... 43019 741–6000 Executive orders and proclamations Proclamations: 171...... 45963 The United States Government Manual 741–6000 9466...... 44127 429 ...... 43404, 45387, 46768, Other Services 9467...... 45385 48620 9468...... 47283 Electronic and on-line services (voice) 741–6020 430 ...... 43404, 45387, 46768, 9469...... 47685 48620 Privacy Act Compilation 741–6064 9470...... 47687 Public Laws Update Service (numbers, dates, etc.) 741–6043 Proposed Rules: Executive Orders: 20...... 43959 13732...... 44485 429...... 47071 ELECTRONIC RESEARCH Administrative Orders: 430...... 47071 Notice of July 20, World Wide Web 2016 ...... 48313 12 CFR Full text of the daily Federal Register, CFR and other publications Memorandums: 19...... 43021 is located at: www.fdsys.gov. Memorandum of July 25...... 48506 13, 2016 ...... 48315 109...... 43021 Federal Register information and research tools, including Public Memorandum of July 195...... 48506 Inspection List, indexes, and Code of Federal Regulations are 13, 2016 ...... 48317 Ch. II ...... 47692 located at: www.ofr.gov. 228...... 48506 5 CFR E-mail 263...... 47006 185...... 46827 345...... 48506 FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is Proposed Rules: 600...... 47691 an open e-mail service that provides subscribers with a digital 532...... 47049 602...... 47691 form of the Federal Register Table of Contents. The digital form 603...... 47691 of the Federal Register Table of Contents includes HTML and 6 CFR 606...... 47691 PDF links to the full text of each document. 3...... 47285 1002...... 44764 To join or leave, go to http://listserv.access.gpo.gov and select 27...... 42987, 47001 1209...... 43028 1217...... 43031 Online mailing list archives, FEDREGTOC-L, Join or leave the list 7 CFR (or change settings); then follow the instructions. 1250...... 43028 2...... 45963 PENS (Public Law Electronic Notification Service) is an e-mail Proposed Rules: 319...... 45387 1016...... 44801 service that notifies subscribers of recently enacted laws. 925...... 44759 1041...... 47864 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 932...... 46567 1232...... 43530 and select Join or leave the list (or change settings); then follow 989...... 44761 the instructions. 1217...... 47004 13 CFR FEDREGTOC-L and PENS are mailing lists only. We cannot 1590...... 43006 121...... 48558 respond to specific inquiries. 1780...... 47689 124...... 48558 1942...... 43927 125...... 48558 Reference questions. Send questions and comments about the Proposed Rules: 126...... 48558 Federal Register system to: [email protected] 319...... 44801 127...... 48558 The Federal Register staff cannot interpret specific documents or 372...... 47051 134...... 48558 regulations. 981...... 46616 14 CFR CFR Checklist. Effective January 1, 2009, the CFR Checklist no 1220...... 45984 longer appears in the Federal Register. This information can be 1260...... 45984 1...... 43463 found online at http://bookstore.gpo.gov/. 11...... 43463 8 CFR 13...... 43463 270...... 42987 23...... 43469, 45965 FEDERAL REGISTER PAGES AND DATE, JULY 274a...... 42987 25 ...... 43471, 45405, 45968, 280...... 42987 48319 42983–43462...... 1 47689–48314...... 22 43463–43926...... 5 39 ...... 43037, 43472, 43475, 48315–48686...... 25 9 CFR 43479, 43481, 43483, 44207, 43927–44206...... 6 112...... 47005 44489, 44492, 44494, 44496, 44207–44488...... 7 309...... 46570 44499, 44503, 44981, 44983, 44489–44758...... 8 327...... 45225 44987, 44990, 44994, 44996, 44759–44980...... 11 Proposed Rules: 47694, 47696, 48321 44981–45224...... 12 93...... 46619 71 ...... 43038, 45407, 47287 45225–45386...... 13 94...... 43115, 46619 91...... 47009, 47699 45387–45962...... 14 95...... 46619 93...... 48323 45963–46566...... 15 96...... 46619 97...... 44765, 44767 46567–46826...... 18 98...... 46619 121...... 43463 46827–47000...... 19 125...... 43463 47001–47284...... 20 10 CFR 135...... 43463 47285–47688...... 21 Ch. I ...... 47689 382...... 43463
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406...... 43463 982...... 44100 539...... 43071 Proposed Rules: 417...... 47017 541...... 43071 14...... 47087 420...... 47017 25 CFR 542...... 43071 38...... 44827 431...... 47017 23...... 47288 543...... 43071 39 CFR 435...... 47017 575...... 43941 544...... 43071 1214...... 43040 546...... 43071 Proposed Rules: Proposed Rules: 26 CFR 547...... 43071 111...... 43965 39 ...... 43120, 43122, 44232, 1 ...... 44508, 45008, 46582, 548...... 43071 40 CFR 44235, 44238, 44241, 44244, 46832, 47701 549...... 43071 44246, 44812, 45070, 45072, 301 ...... 43488, 45012, 45409 560...... 43071 Ch. I ...... 43492 45075, 45992, 45995, 45997, 602...... 45008, 45012 561...... 43071 9...... 45416 19...... 43091 46000, 46002, 47084, 47313 Proposed Rules: 566...... 43071 52 ...... 43096, 43490, 43894, 71 ...... 43124, 46850, 47737, 1 ...... 43567, 44557, 45088, 576...... 43071 44210, 44542, 44795, 45417, 47738 46004, 47739 588...... 43071 45419, 45421, 46606, 46608, 73...... 46851, 48364 54...... 47741 592...... 43071 46612, 46836, 47029, 47034, 139...... 45872 301...... 44557, 47534 593...... 43071 47036, 47040, 47300, 47302, 15 CFR 594...... 43071 27 CFR 595...... 43071 47708, 48346, 48348, 48350 730...... 44770 60 ...... 43950, 44212, 45232 9...... 47289 597...... 43071 736...... 44770 63...... 45232, 48356 16...... 43062 598...... 43071 738...... 44770 81...... 44210, 45039 746...... 44770 28 CFR 32 CFR 141...... 46839 Proposed Rules: 706 ...... 43077, 47706, 47707 180 ...... 43097, 47042, 47304, Ch. 1 ...... 48365 0...... 43065 47309 11...... 43942 801...... 43126 33 CFR 228...... 44220 94...... 44515 370...... 47311 27...... 42987 17 CFR Proposed Rules: 721...... 44797, 45416 97...... 45012 201...... 43042 32...... 46019 1065...... 43101 232...... 43047 100 ...... 43079, 43488, 43947, 29 CFR 45013, 45015, 45018 Proposed Rules: Proposed Rules: 117 ...... 43947, 44541, 45018, 51...... 43180 229...... 43130 5...... 43430 52 ...... 43180, 43568, 44830, 230...... 43130 500...... 43430 45020, 45232, 45971, 46599, 46833, 48327 44831, 45428, 45438, 45447, 240...... 43130 501...... 43430 46852, 46865, 46866, 47094, 275...... 43530 503...... 42983 140...... 48220 145...... 48220 47103, 47114, 47115, 47124, 530...... 43430 47133, 47144, 47314, 47324, 18 CFR 570...... 43430 147...... 43947, 45018 148...... 48220 47745 39...... 44998 578...... 43430 60...... 47325 250...... 43937 579...... 43430 149...... 48220 160...... 45012 62...... 47325 385...... 43937 801...... 43430 63...... 45089, 48372 Proposed Rules: 825...... 43430 165 ...... 43079, 43085, 43087, 43089, 43947, 44209, 45018, 81...... 47144 375...... 43557 1902...... 43430 131...... 46030 388...... 43557 1903...... 43430 45022, 45414, 45972, 46600, 46601, 46833, 46835, 47027, 171...... 48373 2550...... 44773, 44784 174...... 47150 19 CFR 2560...... 43430 47291, 47293, 48329, 48331, 48333 180...... 47150 Proposed Rules: 2575...... 43430 228...... 45262 102...... 44555 2590...... 43430 Proposed Rules: 149...... 43961 4022...... 45969 100...... 44815 41 CFR 110...... 45428, 46026 20 CFR Proposed Rules: 50–201...... 43430 2520...... 47496, 47534 117...... 48369 404...... 43048 2590 ...... 47496, 47534, 47741 164...... 44817 42 CFR 655...... 43430 4065...... 47534 165...... 43178, 44825 8...... 44712 702...... 43430 88...... 43510 725...... 43430 34 CFR 30 CFR 401...... 44456 726...... 43430 100...... 43430 Ch. II ...... 46817 457...... 47045 Proposed Rules: 270...... 46808 250...... 46478 Proposed Rules: 404...... 45079 254...... 46478 271...... 46808 405...... 45079 8...... 44576 550 ...... 43066, 46478, 46599 272...... 46808 416...... 45079 401...... 43790 553...... 43066 Ch. III...... 47296, 48335 405...... 43790, 46162 21 CFR 556...... 46599 Proposed Rules: 409...... 43714 200...... 44928, 44958 1...... 45912 723...... 44535 410...... 46162 724...... 44535 600...... 48598 411...... 46162 14...... 45409 668...... 48598 20...... 45409 845...... 44535 414...... 46162 846...... 44535 56...... 47288 36 CFR 416...... 45604 101...... 43061 1202...... 43338 417...... 46162 108...... 46828 1206...... 43338 2...... 45024 419...... 45604 172...... 46578 Proposed Rules: 1235...... 45249 422...... 43790, 46162 876...... 45229 914...... 45425 1236...... 45249 423...... 43790, 46162 882...... 44771 916...... 45426 1237...... 45249 424...... 46162 Proposed Rules: 425...... 46162 31 CFR 37 CFR 1...... 43155 460...... 46162 1005...... 43155 356...... 43069 Proposed Rules: 478...... 43790 1271...... 43155 501...... 43071 385...... 48371 482...... 45604 535...... 43071 484...... 43714 24 CFR 536...... 43071 38 CFR 486...... 45604 Proposed Rules: 537...... 43071 17...... 46601, 46603 488...... 45604 578...... 48366 538...... 43071 38...... 44792 495...... 45604
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44 CFR 137...... 46848 16...... 45852 231...... 43105 Proposed Rules: 138...... 46848 19...... 45833 232...... 43105 67...... 43568 139...... 46848 31...... 45852 233...... 43105 140...... 46848 42...... 45852 234...... 43105 45 CFR 141...... 46848 52 ...... 45833, 45852, 45856 235...... 43105 142...... 46848 53...... 45855 92...... 46613 236...... 43105 143...... 46848, 47312 538...... 43956 170...... 47714 237...... 43105 144...... 46848, 47312 552...... 43956 Proposed Rules: 238...... 43105 147...... 48220 752...... 47046 239...... 43105 75...... 45270 159...... 48220 902...... 45974 147...... 47741 240...... 43105 160...... 48220 909...... 45974 241...... 43105 161...... 48220 916...... 45974 46 CFR 242...... 43105 162...... 48220 917...... 45974 1 ...... 43950, 44230, 46848 243...... 43105 164...... 48220 923...... 45974 244...... 43105 2...... 46848 167...... 48220 925...... 45974 272...... 43105 10...... 43950, 44230 169...... 48220 931...... 45974 App. G. to Subch. B of 11...... 43950, 44230 175...... 48220 936...... 45974 Ch. III ...... 47722 12...... 43950, 44230 176...... 48220 942...... 45974 13...... 43950, 44230 177...... 48220 952...... 45974 365...... 47714 14...... 44230 181...... 48220 970...... 45974 381...... 47714 383...... 47714 15 ...... 43950, 44230, 46848 182...... 48220 Proposed Rules: 390...... 47714 25...... 48220 185...... 48220 752...... 47152 27...... 48220 188...... 48220 915...... 43971 391...... 47714 28...... 48220 189...... 48220 934...... 43971 392...... 43957, 47714 30...... 48220 190...... 48220 942...... 43971 393...... 47714, 47722 31...... 48220 193...... 48220 944...... 43971 395...... 47714 32...... 48220 199...... 46848 945...... 43971 396 ...... 47714, 47722, 47732 34...... 48220 Proposed Rules: 952...... 43971 578...... 43524 50...... 48220 Ch. I ...... 46042 1032...... 45118 1503...... 42987 56...... 48220 1052...... 45118 47 CFR 70...... 48220 50 CFR 71...... 48220 Ch. I ...... 43956 49 CFR 72...... 48220 1...... 43523, 44414 8...... 45979 17...... 47047 76...... 48220 4...... 45055 209...... 43101, 43105 20...... 48648 78...... 48220 5...... 48362 213...... 43105 217...... 47240 90...... 48220 54...... 44414, 45973 214...... 43105 300...... 45982, 46614 91...... 48220 73 ...... 43101, 43955, 44231 215...... 43105 622 ...... 45068, 45245, 46848, 92...... 48220 Proposed Rules: 216...... 43105 48220 95...... 48220 0...... 46870 217...... 43105 635...... 44798 97...... 45012 1...... 46870 218...... 43105 648...... 43957, 46615 107...... 48220 4...... 45095 219...... 43105 679...... 45423 108...... 48220 54...... 45447 220...... 43105 Proposed Rules: 113...... 48220 63...... 46870 221...... 43105 17...... 43972 114...... 48220 222...... 43105 32...... 45790 115...... 48220 48 CFR 223...... 43105 223...... 43979 116...... 48220 Ch. 1...... 45832, 45868 224...... 43105 224...... 43979 118...... 48220 1...... 45833 225...... 43105 300...... 47325 122...... 48220 2...... 45833, 45852 227...... 43105 648...... 47152 125...... 48220 4...... 45866 228...... 43105 660...... 47154 132...... 48220 8...... 45854 229...... 43105 665...... 44249 136...... 46848 15...... 45833, 45852 230...... 43105 679...... 44251, 46883
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Register but may be ordered S. 1252/P.L. 114–195 enacted public laws. To in ‘‘slip law’’ (individual Global Food Security Act of subscribe, go to http:// LIST OF PUBLIC LAWS pamphlet) form from the 2016 (July 20, 2016; 130 Stat. listserv.gsa.gov/archives/ This is a continuing list of Superintendent of Documents, 675) publaws-l.html public bills from the current U.S. Government Publishing Last List July 20, 2016 session of Congress which Office, Washington, DC 20402 Note: This service is strictly have become Federal laws. (phone, 202–512–1808). The Public Laws Electronic for E-mail notification of new This list is also available text will also be made laws. The text of laws is not online at http:// Notification Service available on the Internet from available through this service. www.archives.gov/federal- GPO’s Federal Digital System (PENS) register/laws. PENS cannot respond to (FDsys) at http://www.gpo.gov/ specific inquiries sent to this The text of laws is not fdsys. Some laws may not yet PENS is a free electronic mail address. published in the Federal be available. notification service of newly
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