Vol. 80 Wednesday, No. 4 January 7, 2015 Pages 823–1004

Vol. 80 Wednesday, No. 4 January 7, 2015

Pages 823–1004

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 80, No. 4

Wednesday, January 7, 2015

Agriculture Department NOTICES See Forest Service Meetings: Farm, Ranch, and Rural Communities Committee, 886– Army Department 887 NOTICES Public Water System Supervision Program: Agency Information Collection Activities; Proposals, Virginia; Revision Approval, 887 Submissions, and Approvals, 867–870 Executive Office of the President See Presidential Documents Coast Guard RULES Federal Communications Commission Regulated Navigation Areas: NOTICES Arthur Kill, NY and NJ, 829–832 Debarments: Donna P. English, 889–890 Commerce Department Gregory Paul Styles, 887–888 See International Trade Administration Marvin Mitch Freeman, 888–889 See National Institute of Standards and Technology Meetings: See National Oceanic and Atmospheric Administration Task Force on Optimal Public Safety Answering Point Architecture, 890–891 Defense Acquisition Regulations System NOTICES Federal Energy Regulatory Commission Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals, 870–871 Combined Filings, 883–886

Defense Department Federal Mine Safety and Health Review Commission See Army Department NOTICES See Defense Acquisition Regulations System Meetings; Sunshine Act, 891 See Navy Department Federal Motor Carrier Safety Administration Department of Transportation NOTICES Meetings; Sunshine Act, 919–920 See Pipeline and Hazardous Materials Safety Administration Federal Reserve System NOTICES Education Department Formations of, Acquisitions by, and Mergers of Bank NOTICES Holding Companies, 891 Applications for New Awards: Proposals to Engage in or to Acquire Companies Engaged in Rehabilitation Services Administration, Capacity Building Permissible Nonbanking Activities, 891–892 Program for Traditionally Underserved Populations, etc., 878–883 Food and Drug Administration Rehabilitation Training, Rehabilitation Long-Term NOTICES Training Program; Vocational Rehabilitation Guidance for Industry and Staff: Counseling, 873–878 Sunscreen Feedback Letters, 892–893

Energy Department Foreign Assets Control Office See Federal Energy Regulatory Commission NOTICES NOTICES Blocking or Unblocking of Persons and Property, 921–923 Meetings: National Coal Council, 883 Forest Service NOTICES Environmental Protection Agency Meetings: RULES National Advisory Committee for Implementation of the Air Quality State Implementation Plans; Approvals and National Forest System Land Management Planning Promulgations: Rule, 859 Alaska; Nonattainment New Source Review, 832–833 PROPOSED RULES Health and Human Services Department Air Quality State Implementation Plans; Approvals and See Food and Drug Administration Promulgations: Idaho, 834–837 Homeland Security Department Washington; Prevention of Significant Deterioration and See Coast Guard Visibility Protection, 838 See U.S. Citizenship and Immigration Services Significant New Uses on Certain Chemical Substances, 838 See U.S. Customs and Border Protection

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Housing and Urban Development Department Presidential Documents NOTICES PROCLAMATIONS Agency Information Collection Activities; Proposals, Special Observances: Submissions, and Approvals: National Mentoring Month (Proc. 9224), 823–824 Indian Community Development Block Grant, 902–903 National Slavery and Human Trafficking Prevention Procedures for Appealing Section 8 Rent Adjustments, Month (Proc. 9225), 825–826 901–902 National Stalking Awareness Month (Proc. 9226), 827– 828 International Trade Administration NOTICES Railroad Retirement Board Antidumping or Countervailing Duty Investigations, Orders, NOTICES or Reviews: Meetings; Sunshine Act, 908 Certain Pasta from Turkey, 863–865 Honey from the People’s Republic of China, 862–863 Securities and Exchange Commission Multilayered Wood Flooring from the People’s Republic NOTICES of China, 859–862 Consolidated Tape Association Plan: Justice Department Second Restatement; Amendments, 908–909 NOTICES Joint Industry Plans: Meetings: BATS Exchange, Inc.; BATS Y-Exchange, Inc.; Chicago Community Oriented Policing Services, President’s Task Board Options Exchange, Inc.; et al., 910–911 Force on 21st Century Policing; Teleconferences, 903 Self-Regulatory Organizations; Proposed Rule Changes: Chicago Board Options Exchange, Inc., 911–913 Mine Safety and Health Federal Review Commission Fixed Income Clearing Corp.; National Securities Clearing See Federal Mine Safety and Health Review Commission Corp.; Depository Trust Co., 918–919 NASDAQ Stock Market, LLC, 916–918 National Institute of Standards and Technology NYSE MKT LLC, 914–916 NOTICES Meetings: Social Security Administration National Conference on Weights and Measures, 865–867 NOTICES Privacy Act; Systems of Records, 919 National Oceanic and Atmospheric Administration PROPOSED RULES Transportation Department Fisheries of the Exclusive Economic Zone Off Alaska: See Federal Motor Carrier Safety Administration Bering Sea and Aleutian Islands Management Area; New See Pipeline and Hazardous Materials Safety Cost Recovery Fee Programs, 936–963 Administration National Science Foundation NOTICES Treasury Department Antarctic Conservation Act Permits, 903 See Foreign Assets Control Office PROPOSED RULES Navy Department Qualified Financial Contracts Recordkeeping Related to NOTICES Orderly Liquidation Authority, 966–1004 Exclusive Patent Licenses: Vann Technology, LLC, 871 U.S. Citizenship and Immigration Services Government-Owned Inventions Available for Licensing, NOTICES 871–873 Extension of the Designation of El Salvador for Temporary Protected Status, 893–899 Nuclear Regulatory Commission NOTICES U.S. Customs and Border Protection Exemptions: NOTICES Dominion Energy Kewaunee, Inc.; Kewaunee Power National Customs Automation Program eBond Test; Station, 904–906 Modifications and Clarifications, 899–901 Personnel Management Office PROPOSED RULES Federal Employees Health Benefits Programs: Separate Parts In This Issue Enrollment Options Following the Termination of a Plan or Plan Option, 929–931 Part II Rate Setting for Community-Rated Plans, 926–929 Personnel Management Office, 926–933 Subrogation and Reimbursement Recovery, 931–933 Part III Pipeline and Hazardous Materials Safety Administration Commerce Department, National Oceanic and Atmospheric NOTICES Administration, 936–963 Special Permit Applications, 920–921

Postal Regulatory Commission Part IV NOTICES Treasury Department, 966–1004 FY 2014 Annual Compliance Report, 906–908

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Reader Aids To subscribe to the Federal Register Table of Contents Consult the Reader Aids section at the end of this page for LISTSERV electronic mailing list, go to http:// phone numbers, online resources, finding aids, reminders, listserv.access.gpo.gov and select Online mailing list and notice of recently enacted public laws. archives, FEDREGTOC-L, Join or leave the list (or change 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 Proclamations: 9224...... 823 9225...... 825 9226...... 827 5 CFR Proposed Rules: 890 (2 documents) ...... 929, 931 31 CFR Proposed Rules: 148...... 966 33 CFR 165...... 829 40 CFR 52...... 832 Proposed Rules: 52 (2 documents) ...... 834, 838 721...... 845 48 CFR Proposed Rules: 1602...... 926 1615...... 926 1652...... 926 50 CFR Proposed Rules: 679...... 936

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Federal Register Presidential Documents Vol. 80, No. 4

Wednesday, January 7, 2015

Title 3— Proclamation 9224 of December 31, 2014

The President National Mentoring Month, 2015

By the President of the United States of America

A Proclamation In a Nation of limitless possibility, every child deserves the chance to unlock his or her potential. When young Americans have the support they need to make the most of themselves, they can achieve their dreams and strengthen our country, which has always moved forward by extending ladders of opportunity to the next generation. Every day, mentors play a vital role in this national mission by helping to broaden the horizons for our daughters and sons. This month, we celebrate these individuals who make it their cause to bring out the best in our young people, and we salute their spirit of service. Mentors and caring adults serve as essential sources of inspiration, lifting up young people and positioning them to build the America of tomorrow. That is why my Administration continues to expand opportunities for mentoring and support the individuals who enable our future leaders. We are working with businesses to increase apprenticeship programs and connect groups traditionally underrepresented in science, technology, engineering, and math fields with role models in STEM careers. First Lady Michelle Obama’s Reach Higher initiative is encouraging campus groups and college students to connect with high schoolers and other near-peers who do not always see themselves completing higher education. Earlier this year, I also launched My Brother’s Keeper, an initiative that recognizes our responsibility to reach every young person regardless of who they are or where they come from. Every American shares in the obligation to widen the circle of opportunity for our young people. Our neighbors’ children are our children—and our country must show them we care about and value their boundless potential. At the White House, the First Lady and I started mentoring initiatives, pairing local students with accomplished and caring professionals, and I am proud that members of my Administration are leading by example. To find ways to give back in your local community and participate in these critical, life-changing moments, I encourage all Americans to visit www.Serve.gov/Mentor. The sense of dedication displayed by all those who invest their time and energy in mentoring reminds us that if we work together, we can ensure there are no limits to what young Americans can achieve. During National Mentoring Month, we honor all those who give of themselves to guide our young people, and we renew our commitment to realizing a future of opportunity for all. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 2015 as National Mentoring Month. I call upon public officials, business and community leaders, educators, and Americans across the country to observe this month with appropriate ceremonies, activities, and programs.

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IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of December, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

[FR Doc. 2015–00068 Filed 1–6–15; 8:45 am] Billing code 3295–F5

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Proclamation 9225 of December 31, 2014

National Slavery and Human Trafficking Prevention Month, 2015

By the President of the United States of America

A Proclamation For more than two centuries, the United States has worked to advance the cause of freedom. Stained from a history of slavery and shaped by ancestors brought to this country in chains, today, America shines as a beacon of hope to people everywhere who cherish liberty and opportunity. Still, our society remains imperfect, and our Nation has more work to do to uphold these values. At home and around the globe, we must continue to fight for human dignity and the inalienable rights of every person. Today, millions of men, women, and children are victims of human trafficking. This modern-day slavery occurs in countries throughout the world and in communities across our Nation. These victims face a cruelty that has no place in a civilized world: children are made to be soldiers, teenage girls are beaten and forced into prostitution, and migrants are exploited and compelled to work for little or no pay. It is a crime that can take many forms, and one that tears at our social fabric, debases our common humanity, and violates what we stand for as a country and a people. Founded on the principles of justice and fairness, the United States continues to be a leader in the global movement to end modern-day slavery. We are working to combat human trafficking, prosecute the perpetrators, and help victims recover and rebuild their lives. We have launched national initiatives to help healthcare workers, airline flight crews, and other professionals better identify and provide assistance to victims of trafficking. We are strengthening protections and supporting the development of new tools to prevent and respond to this crime, and increasing access to services that help survivors become self-sufficient. We are also working with our international partners and faith-based organizations to bolster counter-trafficking efforts in countries across the globe. As we fight to eliminate trafficking, we draw strength from the courage and resolve of generations past—and in the triumphs of the great abolitionists that came before us, we see the promise of our Nation: that even in the face of impossible odds, those who love their country can change it. Every citizen can take action by speaking up and insisting that the clothes they wear, the food they eat, and the products they buy are made free of forced labor. Business and non-profit leaders can ensure their supply chains do not exploit individuals in bondage. And the United States Government will continue to address the underlying forces that push so many into the conditions of modern-day slavery in the first place. During National Slavery and Human Trafficking Prevention Month, we stand with the survivors, advocates, and organizations dedicated to building a world where our people and our children are not for sale. Together, let us recommit to a society where our sense of justice tells us that we are our brothers’ and sisters’ keepers, where every person can forge a life equal to their talents and worthy of their dreams.

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NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 2015 as National Slavery and Human Trafficking Prevention Month, culminating in the annual celebration of National Freedom Day on February 1. I call upon businesses, national and community organizations, families, and all Americans to recognize the vital role we can play in ending all forms of slavery and to observe this month with appropriate programs and activities. IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of December, in the year of our Lord two thousand fourteen, and of the Independence of the United States of America the two hundred and thirty- ninth.

[FR Doc. 2015–00073 Filed 1–6–15; 8:45 am] Billing code 3295–F5

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Proclamation 9226 of December 31, 2014

National Stalking Awareness Month, 2015

By the President of the United States of America

A Proclamation In every State across our Nation, stalking is a crime. It is unacceptable behavior that violates the most basic principles of respect and decency, infringing on our fundamental right to feel safe and secure. At some point in their lives, 1 in 6 American women will be stalked. This abuse creates distress and takes a profound toll on its victims and our communities. This month, we extend our support to all those who have experienced stalking, and we renew our commitment to shine a light on this injustice. Stalking is a pattern of unwanted contact—which can include text messages, emails, and phone calls—that causes an individual to fear for their safety or the safety of loved ones. While young women are disproportionately at risk, anyone can be a victim, including children and men. Individuals who are stalked often know the perpetrator, but stalkers can also be acquaint- ances or strangers. Stalking is a serious offense with significant consequences. It is often detrimental to the physical and emotional well-being of the victim, and some are forced to move or change jobs. This behavior often escalates over time, and is sometimes followed by sexual assault or homicide. Addressing this hidden crime is part of my Administration’s comprehensive strategy to combat violence against women, and stalking is one of the four areas addressed by the Violence Against Women Act. When I proudly signed the reauthorization of this historic law, we bolstered many of its provisions, including expanding safeguards against cyberstalking and protections for immigrants who have been victims of stalking. Across the Federal Govern- ment, we are building strong partnerships with those working to break the cycle of this abuse, and we remain dedicated to ending violence against women and men in all its forms. Our homes, schools, offices, and neighborhoods should be places where Americans feel secure and confident. During National Stalking Awareness Month, we join with the advocates, families, professionals, and survivors to amplify their refrain: If you are a victim of stalking, you are not alone. Together, let us continue to raise awareness of this violence and recommit to being part of the solution. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 2015 as National Stalking Awareness Month. I call upon all Americans to recognize the signs of stalking, acknowledge stalking as a serious crime, and urge those affected not to be afraid to speak out or ask for help. Let us also resolve to support victims and survivors, and to create communities that are secure and supportive for all Americans.

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[FR Doc. 2015–00077 Filed 1–6–15; 8:45 am] Billing code 3295–F5

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Rules and Regulations Federal Register Vol. 80, No. 4

Wednesday, January 7, 2015

This section of the FEDERAL REGISTER rulemaking. You may also visit the The Goethals Bridge spans the Arthur contains regulatory documents having general Docket Management Facility in Room Kill at mile 11.5. The current structure applicability and legal effect, most of which W12–140 on the ground floor of the of the Goethals Bridge will be replaced are keyed to and codified in the Code of Department of Transportation West with a twin span south of the existing Federal Regulations, which is published under Building, 1200 New Jersey Avenue SE., bridge. Work on the bridge commenced 50 titles pursuant to 44 U.S.C. 1510. Washington, DC 20590, between 9 a.m. in December 2013. New westbound The Code of Federal Regulations is sold by and 5 p.m., Monday through Friday, construction has been underway since the Superintendent of Documents. Prices of except Federal holidays. April 2013 and is expected to continue new books are listed in the first FEDERAL FOR FURTHER INFORMATION CONTACT: If until December 2017. Substantial REGISTER issue of each week. you have questions on this rule, call or completion of both bridges is expected email LT Hannah Eko, Waterways to occur in December 2017. Demolition Management, U.S. Coast Guard; of the main span of the currently DEPARTMENT OF HOMELAND telephone 718–354–4114, email existing bridge is expected to occur SECURITY [email protected]. If you have within the December 2016 to October questions on viewing or submitting 2018 timeframe. Coast Guard material to the docket, call Cheryl Currently, it is unknown whether Collins, Program Manager, Docket explosives will be utilized for 33 CFR Part 165 Operations, telephone 202–366–9826. demolition purposes or whether the [Docket Number USCG–2013–1063] SUPPLEMENTARY INFORMATION: existing span will be lowered in increments into barges moored in the RIN 1625–AA11 Table of Acronyms Arthur Kill. Final completion of the bridge project is expected to occur in Regulated Navigation Area; Arthur Kill, DHS Department of Homeland Security October 2018. NY and NJ FR Federal Register NPRM Notice of Proposed Rulemaking Dredging activities will resume in a AGENCY: Coast Guard, DHS. RNA Regulated Navigation Area portion of the Arthur Kill from December 2014 until December 2015. ACTION: Temporary final rule. A. Regulatory History and Information These activities may potentially involve SUMMARY: The Coast Guard is On September 25, 2013, a Bridge drilling and underwater blasting of establishing a Regulated Navigation Permit was issued approving the bedrock in the Arthur Kill navigable Area (RNA) on the navigable waters of location and plans for new construction channel. Dredging operations may the Arthur Kill in New York and New of the Goethals Bridge, which spans the encroach on portions of the navigable Jersey. This RNA will allow the Coast Arthur Kill. channel, require the relocation of lateral Guard to enforce speed and wake On April 14, 2014, we published a aids to navigation, and create a restrictions and limit vessel traffic Notice of Proposed Rulemaking (NPRM) reduction in the width of the through the RNA during bridge with respect to this rule (79 FR 20851) navigational channel. replacement operations on the Goethals entitled Regulated Navigation Area; The Coast Guard First District Bridge and during drilling, blasting, and Arthur Kill, NY and NJ in the Federal Commander has determined that this dredging operations in support of the Register. We received one comment on construction project poses dangers to U.S. Army Corps of Engineers channel the proposed rule. The comment was the maritime public and this rule is deepening project, both planned and sent on behalf of the American necessary to ensure the safe transit of unforeseen, which could pose an Waterways Operators (AWO), a national vessels in the area, and to protect all imminent hazard to persons and vessels trade association for the U.S. tugboat, persons, vessels, and the marine operating in the area. This rule is towboat, and barge industry. AWO environment. made two recommendations concerning necessary to provide for the safety of life C. Discussion of Comments, Changes the proposed rule. on the navigable waters during and the Final Rule construction on the Goethals Bridge and The Coast Guard also held five For the reasons discussed above, The the channel deepening project. navigational safety meetings concerning Arthur Kill 4 (AK–4) dredging and Coast Guard is establishing a RNA on DATES: This rule is effective without Goethals Bridge construction activities the navigable waters of the Arthur Kill actual notice from January 7, 2015 until and navigational safety. The last from Port Ivory to the charted Graselli October 31, 2018. For the purposes of meeting was held July 9, 2014. High Wires north of Pralls Island from enforcement, actual notice will be used No public meeting was requested and December 2014 through October 2018. from the date the rule was signed, none was held. Construction operations are sensitive December 2, 2014, until January 7, 2015. to water movement, and wake from ADDRESSES: Documents mentioned in B. Basis and Purpose passing vessels could pose significant this preamble are part of docket USCG– Under the Ports and Waterways Safety risk of injury or death to construction 2013–1063. To view documents Act, the Coast Guard has the authority workers. In order to minimize such mentioned in this preamble as being to establish RNAs in defined water areas unexpected or uncontrolled movement available in the docket, go to http:// that are hazardous or in which of water, the RNA will limit vessel www.regulations.gov, type the docket hazardous conditions are determined to speed and wake of all vessels operating number in the ‘‘SEARCH’’ box and click exist. See 33 U.S.C. 1231 and in the vicinity of the bridge and ‘‘SEARCH.’’ Click on Open Docket Department of Homeland Security dredging construction zone. This will be Folder on the line associated with this Delegation No. 0170.1. achieved by implementing a five (5)

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knot speed limit and ‘‘NO WAKE’’ zone by the dynamic nature of the bridge entities during rulemaking. The term in the vicinity of the construction as construction, dredging process, and ‘‘small entities’’ comprises small well as providing a means to suspend multitude of construction, drilling, and businesses, not-for-profit organizations all vessel traffic for emergent situations blasting equipment associated with the that are independently owned and that pose imminent threat to waterway project. The associated hazardous operated and are not dominant in their users in the area. The RNA will also conditions necessitate that all mariners fields, and governmental jurisdictions protect vessels desiring to transit the comply with this RNA, as the with populations of less than 50,000. area by ensuring that vessels are only conditions surrounding the The Coast Guard received zero permitted to transit when it is safe to do construction, drilling, and blasting may comments from the Small Business so. change on a daily basis. Moreover, the Administration on this rule. The Coast The Coast Guard may close the RNA Coast Guard will continue to meet with Guard certifies under 5 U.S.C. 605(b) described in this rule to all vessel traffic the USACE, harbor and docking pilots, that this rule will not have a significant during any circumstance that poses an tug boat operators, and the contractors economic impact on a substantial imminent threat to waterway users to assess the need for a vessel queue number of small entities. This rule operating in the area. Complete system when the dredging and bridge would affect the following entities, waterway closures will be made with as contractors submit work plans to the some of which might be small entities: much advanced notice as possible. Coast Guard. All waterway users have the owners or operators of vessels Further, the speed limit of five (5) 24 hour access to VTSNY for immediate intending to transit or anchor in a knots will be in effect at all times within access to the Coast Guard, and there is portion of the Arthur Kill from the RNA and all vessels must proceed ample time for the ‘‘Harbor Safety, December 2014 to October 2018. through the area with caution and Navigation, and Operations Committee The Coast Guard expects no operate in such a manner as to produce of New York,’’ which is composed of all significant economic impact on a no wake unless a higher minimum waterway users, to address waterway substantial number of small entities, as speed is necessary to maintain bare closure or traffic management concerns mentioned in the Regulatory Planning steerage. The Coast Guard will rely on that may arise. If a vessel queue system and Review section above, because this the methods described in 33 CFR 165.7 is needed, it will be administered on a rule only requires vessels to reduce their to notify the public of the time and case-by-case basis by the VTSNY. As speed through a limited portion of the duration of any closure of the RNA. such, the Coast Guard made no changes Arthur channel and will have limited The Coast Guard received one to the rule proposed in the NPRM based traffic restrictions during operations comment during the 60-day NPRM on comments received. involving bridge construction, both comment period. The comment was planned and unforeseen therefore authored by a representative of the D. Regulatory Analyses causing only a minimal delay to a American Waterway Operators and We developed this rule after vessel’s transit. contained two recommendations. The considering numerous statutes and 3. Assistance for Small Entities first recommendation concerned executive orders related to rulemaking. notifying mariners at least 48 hours in Below we summarize our analyses Under section 213(a) of the Small advance of waterway closures on the based on these statutes and executive Business Regulatory Enforcement Arthur Kill and ensuring that waterway orders. Fairness Act of 1996 (Public Law 104– closures last only as long as needed to 121), we want to assist small entities in ensure safe navigation. The second 1. Regulatory Planning and Review understanding this rule. If the rule recommendation requested that the This rule is not a significant would affect your small business, Coast Guard set up a vessel queue regulatory action under section 3(f) of organization, or governmental system that would allow vessels moving Executive Order 12866, Regulatory jurisdiction and you have questions with the flood tide to access the right- Planning and Review, as supplemented concerning its provisions or options for of-way in the restricted portion of the by Executive Order 13563, Improving compliance, please contact the person Arthur Kill. AWO recommended that Regulation and Regulatory Review, and listed in the FOR FURTHER INFORMATION Vessel Traffic Service New York does not require an assessment of CONTACT, above. (VTSNY) administer the proposed potential costs and benefits under Small businesses may send comments queue system. section 6(a)(3) of Executive Order 12866 on the actions of Federal employees The Coast Guard agrees with early or under section 1 of Executive Order who enforce, or otherwise determine notifications and will make every effort 13563. The Office of Management and compliance with, Federal regulations to to notify mariners 48 hours or more in Budget has not reviewed it under those the Small Business and Agriculture advance of waterway closures. We Orders. Regulatory Enforcement Ombudsman participated in five initial planning We expect the economic impact of and the Regional Small Business meetings with the USACE, NY and NJ this rule to be minimal because this Regulatory Fairness Boards. The Port Authorities, harbor and docking RNA only enforces a speed and wake Ombudsman evaluates these actions pilots, tug boat operators, and restriction through a limited portion of annually and rates each agency’s construction and dredge contractors the Arthur Kill, and will have limited responsiveness to small business. If you between March and July 2014. The traffic restrictions during operations wish to comment on actions by results of the meetings determined that involving bridge construction and employees of the Coast Guard, call 1– there may be times when the Coast dredging, both planned and unforeseen 888–REG–FAIR (1–888–734–3247). The Guard will be unable to provide 48 therefore causing only a minimal delay Coast Guard will not retaliate against hours notice to the public. However, to a vessel’s transit. small entities that question or complain this waterway is within the VTSNY area about this rule or any policy or action 2. Impact on Small Entities and, as such, VTSNY will serve to of the Coast Guard. communicate waterway closures and The Regulatory Flexibility Act of 1980 impacts with as much notice as (RFA), 5 U.S.C. 601–612, as amended, 4. Collection of Information possible. The Coast Guard’s decision to requires federal agencies to consider the This rule will not call for a new close the waterway will be influenced potential impact of regulations on small collection of information under the

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Paperwork Reduction Act of 1995 (44 13175, Consultation and Coordination ■ 2. Add § 165.T01–1063 to read as U.S.C. 3501–3520). with Indian Tribal Governments, follows: because it does not have a substantial 5. Federalism direct effect on one or more Indian § 165.T01–1063 Regulated Navigation Area; Arthur Kill, NY and NJ. A rule has implications for federalism tribes, on the relationship between the under Executive Order 13132, Federal Government and Indian tribes, (a) Location. The following area is a Federalism, if it has a substantial direct or on the distribution of power and Regulated Navigation Area (RNA): All effect on the States, on the relationship responsibilities between the Federal navigable waters from Port Ivory to between the national government and Government and Indian tribes. Grasselli High Wires north of Pralls the States, or on the distribution of Island in the Arthur Kill; bounded in power and responsibilities among the 12. Energy Effects the northeast by a line drawn from various levels of government. We have This action is not a ‘‘significant position 40°38′43.260″ N, analyzed this rule under that Order and energy action’’ under Executive Order 074°10′47.208″ W; to a point in position determined that this rule does not have 13211, Actions Concerning Regulations 40°38′52.152″ N, 074°10′47.748″ W; and implications for federalism. That Significantly Affect Energy Supply, bounded in the southwest by a line Distribution, or Use. drawn from position 40°37′8.940″ N, 6. Protest Activities 074°12′19.116″ W; to a point in position The Coast Guard respects the First 13. Technical Standards 40°37′03.252″ N, 074°12′02.052″ W. All Amendment rights of protesters. This rule does not use technical geographic coordinates are North Protesters are asked to contact the standards. Therefore, we did not American Datum of 1983 (NAD 83). person listed in the FOR FURTHER consider the use of voluntary consensus (b) Regulations. (1) The general INFORMATION CONTACT section to standards. regulations contained in 33 CFR 165.10, coordinate protest activities so that your 14. Environment 165.11, and 165.13 apply within the message can be received without RNA. jeopardizing the safety or security of We have analyzed this rule under (2) Any vessel transiting through the people, places or vessels. Department of Homeland Security RNA must make a direct passage. No Management Directive 023–01 and vessel may stop, moor, anchor or loiter 7. Unfunded Mandates Reform Act Commandant Instruction M16475.lD, within the RNA at any time unless they The Unfunded Mandates Reform Act which guide the Coast Guard in are working on the bridge construction. of 1995 (2 U.S.C. 1531–1538) requires complying with the National Movement within the RNA is subject to Federal agencies to assess the effects of Environmental Policy Act of 1969 a ‘‘Slow-No Wake’’ speed limit. All their discretionary regulatory actions. In (NEPA) (42 U.S.C. 4321–4370f), and vessels may not produce a wake and particular, the Act addresses actions have determined that this action is one may not attain speeds greater than five that may result in the expenditure by a of a category of actions that do not (5) knots unless a higher minimum State, local, or tribal government, in the individually or cumulatively have a speed is necessary to maintain bare aggregate, or by the private sector of significant effect on the human steerage. $100,000,000 (adjusted for inflation) or environment. This rule involves the (3) There may be times that the First more in any one year. Though this rule establishment of an RNA on portions of District Commander or the Captain of will not result in such an expenditure, the Arthur Kill. This rule is the Port (COTP) finds it necessary to we do discuss the effects of this rule categorically excluded from further close the RNA to vessel traffic. During elsewhere in this preamble. review under paragraph 34(g) of Figure times of limited closure, persons and 2–1 of the Commandant Instruction. An 8. Taking of Private Property vessels may request permission to enter environmental analysis checklist the RNA by contacting the COTP or the This rule will not cause a taking of supporting this determination and a COTP’s on-scene representative on private property or otherwise have Categorical Exclusion Determination are VHF–16 or via phone at 718–354–4353. taking implications under Executive available in the docket where indicated (4) Any vessels transiting in the RNA Order 12630, Governmental Actions and under ADDRESSES. We seek any must comply with all directions given to Interference with Constitutionally comments or information that may lead them by the COTP or the COTP’s on- Protected Property Rights. to the discovery of a significant scene representative. The ‘‘on-scene 9. Civil Justice Reform environmental impact from this rule. representative’’ of the COTP is any This rule meets applicable standards List of Subjects in 33 CFR Part 165 Coast Guard commissioned, warrant or petty officer who has been designated in sections 3(a) and 3(b)(2) of Executive Harbors, Marine safety, Navigation by the COTP to act on the COTP’s Order 12988, Civil Justice Reform, to (water), Reporting and recordkeeping behalf. The on-scene representative may minimize litigation, eliminate requirements, Security measures, be on a Coast Guard vessel; or other ambiguity, and reduce burden. Waterways. designated craft; or on shore and 10. Protection of Children For the reasons discussed in the communicating with a VTSNY preamble, the Coast Guard amends 33 We have analyzed this rule under Watchstander or vessels via VHF–FM CFR part 165 as follows: Executive Order 13045, Protection of radio or loudhailer. Members of the Children from Environmental Health PART 165—REGULATED NAVIGATION Coast Guard Auxiliary may be present to Risks and Safety Risks. This rule is not AREAS AND LIMITED ACCESS AREAS inform vessel operators of this an economically significant rule and regulation. does not create an environmental risk to ■ 1. The authority citation for part 165 (5) All other relevant regulations, health or risk to safety that may continues to read as follows: including but not limited to the Rules of the Road, as codified in 33 CFR disproportionately affect children. Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. subchapter E, Inland Navigational 11. Indian Tribal Governments Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, 6.04–6, 160.5; Pub. L. Rules, remain in effect within the RNA This rule does not have tribal 107–295, 116 Stat. 2064; Department of and must be strictly followed at all implications under Executive Order Homeland Security Delegation No. 0170.1. times.

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(6) Vessel Movement Reporting ADDRESSES: The EPA has established a The EPA acknowledges ADEC’s support System (VMRS) users are prohibited docket for this action under Docket of this action. from meeting or overtaking other vessels Identification No. EPA–R10–OAR– III. Final Action when transiting alongside an active 2014–0753. All documents in the docket work area where dredging and drilling are listed on the http:// Provisions the EPA Is Approving and equipment are being operated. www.regulations.gov Web site. Although Incorporating by Reference (c) Effective and enforcement period. listed in the index, some information Consistent with the discussion and may not be publicly available, i.e., This regulation is effective and analysis in the proposed rulemaking Confidential Business Information or enforceable 24 hours a day from 12:01 published on November 4, 2014, the other information the disclosure of a.m. on December 2, 2014 until 11:59 EPA is approving into the SIP at 40 CFR which is restricted by statute. Certain p.m. on October 31, 2018. part 52, subpart C, 18 AAC 50.040(i) and other material, such as copyrighted (d) Notification. The Coast Guard will 18 AAC 50.990, as in effect on material, is not placed on the Internet rely on the methods described in 33 November 9, 2014. Where the same and will be publicly available only in CFR 165.7 to notify the public of the provision has been amended on hard copy form. Publicly available time and duration of any closure of the multiple occasions and submitted in docket materials are available either RNA. Violations of this RNA may be more than one submittal, we are electronically through http:// reported to the COTP at 718–354–4353 approving the most recently submitted www.regulations.gov or in hard copy at or on VHF-Channel 16. amendment to any particular provision. Dated: December 2, 2014. EPA Region 10, Office of Air, Waste, and Toxics, AWT–150, 1200 Sixth IV. Statutory and Executive Order L.L. Fagan, Avenue, Seattle, Washington 98101. The Reviews Rear Admiral, U.S. Coast Guard, Commander, EPA requests that you contact the First Coast Guard District. Under the CAA, the Administrator is person listed in the FOR FURTHER [FR Doc. 2014–29856 Filed 1–6–15; 8:45 am] required to approve a SIP submission INFORMATION CONTACT section to BILLING CODE 9110–04–P that complies with the provisions of the schedule your inspection. The Regional CAA and applicable Federal regulations. Office’s official hours of business are 42 U.S.C. 7410(k); 40 CFR 52.02(a). Monday through Friday, 8:30 a.m. to Thus, in reviewing SIP submissions, the ENVIRONMENTAL PROTECTION 4:30 p.m., excluding Federal holidays. AGENCY EPA’s role is to approve state choices, FOR FURTHER INFORMATION CONTACT: provided that they meet the criteria of 40 CFR Part 52 Donna Deneen at (206) 553–6706, the CAA. Accordingly, this action [email protected], or by using the merely approves State law as meeting [EPA–R10–OAR–2014–0753; FRL–9921–40– above EPA, Region 10 address. Federal requirements and does not Region 10] SUPPLEMENTARY INFORMATION: impose additional requirements beyond Approval and Promulgation of Throughout this document wherever those imposed by State law. For that Implementation Plans; Alaska: ‘‘we,’’ ‘‘us’’ or ‘‘our’’ is used, it is reason, this action: • Nonattainment New Source Review intended to refer to the EPA. Is not a significant regulatory action Table of Contents subject to review by the Office of AGENCY: Environmental Protection Management and Budget under Agency. I. Background Executive Orders 12866 (58 FR 51735, II. Response to Comments ACTION: October 4, 1993) and 13563 (76 FR 3821, Final rule. III. Final Action IV. Statutory and Executive Order Reviews January 21, 2011); SUMMARY: The Environmental Protection • does not impose an information Agency (EPA) is taking final action to I. Background collection burden under the provisions approve revisions to the Alaska State The EPA proposed action on revisions of the Paperwork Reduction Act (44 Implementation Plan (SIP) submitted by to the Alaska SIP related to major NNSR U.S.C. 3501 et seq.); the Commissioner of the Alaska in a notice of proposed rulemaking • is certified as not having a Department of Environmental published on November 4, 2014 (79 FR significant economic impact on a Conservation (ADEC) on December 11, 65366). In general, the revisions update substantial number of small entities 2009, November 29, 2010, December 10, the adoption by reference of 40 CFR under the Regulatory Flexibility Act (5 2012, January 28, 2013, July 1, 2014, 51.165 in 18 AAC 50.040(i), which is U.S.C. 601 et seq.); and October 24, 2014, to meet Clean Air relied on as part of Alaska’s • does not contain any unfunded Act (CAA) requirements. These nonattainment area major stationary mandate or significantly or uniquely revisions update Alaska’s adoption by source permit provisions in 18 AAC affect small governments, as described reference of the Federal preconstruction 50.311. The revisions were submitted by in the Unfunded Mandates Reform Act permitting regulations for large ADEC on December 11, 2009, November of 1995 (Pub. L. 104–4); industrial (major source) facilities 29, 2010, December 10, 2012, January • does not have Federalism located in designated nonattainment 28, 2013, July 1, 2014, and October 24, implications as specified in Executive areas, referred to as the Nonattainment 2014. Please see EPA’s November 4, Order 13132 (64 FR 43255, August 10, New Source Review (major NNSR) 2014 proposed rulemaking (79 FR 1999); program. The major NNSR program is 65366) for further explanation of the • is not an economically significant designed to ensure that major stationary revisions and the basis for our approval. regulatory action based on health or sources of air pollution are constructed safety risks subject to Executive Order or modified in a manner that is II. Response to Comments 13045 (62 FR 19885, April 23, 1997); consistent with attainment and The EPA received one comment letter • is not a significant regulatory action maintenance of the National Ambient on the November 4, 2014 (79 FR 65366), subject to Executive Order 13211 (66 FR Air Quality Standards (NAAQS). proposed rule. The comment letter, 28355, May 22, 2001); DATES: This final rule is effective on submitted by ADEC, states that it • is not subject to requirements of February 6, 2015. supports the EPA’s proposed action. Section 12(d) of the National

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Technology Transfer and Advancement submit a report containing this action Incorporation by reference, Act of 1995 (15 U.S.C. 272 note) because and other required information to the Intergovernmental relations, Lead, this action does not involve technical U.S. Senate, the U.S. House of Nitrogen dioxide, Ozone, Particulate standards; and Representatives, and the Comptroller matter, Reporting and recordkeeping • does not provide the EPA with the General of the United States prior to requirements, Sulfur oxides, Volatile discretionary authority to address, as publication of the rule in the Federal organic compounds. appropriate, disproportionate human Register. A major rule cannot take effect Authority: 42 U.S.C. 7401 et seq. health or environmental effects, using until 60 days after it is published in the Dated: December 23, 2014. practicable and legally permissible Federal Register. This action is not a methods, under Executive Order 12898 ‘‘major rule’’ as defined by 5 U.S.C. Michelle L. Pirzadeh, (59 FR 7629, February 16, 1994). 804(2). Acting Regional Administrator, Region 10. Under section 307(b)(1) of the CAA, In addition, the SIP is not approved 40 CFR part 52 is amended as follows: petitions for judicial review of this to apply on any Indian reservation land action must be filed in the United States PART 52—APPROVAL AND or in any other area where the EPA or Court of Appeals for the appropriate PROMULGATION OF an Indian Tribe has demonstrated that a circuit by March 9, 2015. Filing a IMPLEMENTATION PLANS Tribe has jurisdiction. In those areas of petition for reconsideration by the Indian country, the rule does not have Administrator of this final rule does not ■ 1. The authority citation for part 52 Tribal implications as specified by affect the finality of this action for the continues to read as follows: Executive Order 13175 (65 FR 67249, purposes of judicial review nor does it Authority: 42 U.S.C. 7401 et seq. November 9, 2000). extend the time within which a petition The Congressional Review Act, 5 for judicial review may be filed, and Subpart C—Alaska U.S.C. 801 et seq., as added by the Small shall not postpone the effectiveness of Business Regulatory Enforcement such rule or action. This action may not ■ 2. In § 52.70, the table in paragraph (c) Fairness Act of 1996, generally provides be challenged later in proceedings to is amended by revising entries ‘‘18 AAC that before a rule may take effect, the enforce its requirements. (See section 50.040’’ and ‘‘18 AAC 50.990’’ to read agency promulgating the rule must 307(b)(2)). as follows: submit a rule report, which includes a copy of the rule, to each House of the List of Subjects in 40 CFR Part 52 § 52.70 Identification of plan. Congress and to the Comptroller General Environmental protection, Air * * * * * of the United States. The EPA will pollution control, Carbon monoxide, (c) * * *

EPA-APPROVED ALASKA REGULATIONS AND STATUTES

State State citation Title/subject effective EPA approval date Explanations date

Alaska Administrative Code Title 18 Environmental Conservation, Chapter 50 Air Quality Control (18 AAC 50) 18 AAC 50 Article 1. Ambient Air Quality Management

******* 18 AAC 50.040 ...... Federal Standards 11/9/14 1/7/15 ...... except (a), (b), (c), (d), (e), (g), (h)(21), (j), and Adopted by Ref- [Insert Federal Register (k). erence. citation];

******* 18 AAC 50 Article 9. General Provisions

******* 18 AAC 50.990 ...... Definitions ...... 11/9/14 1/7/15 ...... [Insert Federal Register citation].

*******

* * * * * [FR Doc. 2014–30956 Filed 1–6–15; 8:45 am] BILLING CODE 6560–50–P

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Proposed Rules Federal Register Vol. 80, No. 4

Wednesday, January 7, 2015

This section of the FEDERAL REGISTER Instructions: Direct your comments to SUPPLEMENTARY INFORMATION: contains notices to the public of the proposed Docket ID No. EPA–R10–OAR–2014– Throughout this document wherever issuance of rules and regulations. The 0477. The EPA’s policy is that all ‘‘we’’, ‘‘us’’ or ‘‘our’’ is used, it is purpose of these notices is to give interested comments received will be included in intended to refer to the EPA. persons an opportunity to participate in the the public docket without change and Information is organized as follows: rule making prior to the adoption of the final may be made available online at rules. Table of Contents www.regulations.gov, including any personal information provided, unless I. Background ENVIRONMENTAL PROTECTION the comment includes information II. Analysis of State Submittal AGENCY claimed to be Confidential Business A. Summary and Analysis of Submittal B. Effect of Court Decisions Vacating and Information (CBI) or other information Remanding Certain Federal Rules 40 CFR Part 52 the disclosure of which is restricted by 1. PM2.5 Nonattainment NSR Provisions [EPA–R10–OAR–2014–0477, FRL–9921–41– statute. Do not submit information that 2. PM2.5 PSD Provisions Region 10] you consider to be CBI or otherwise 3. PSD Deferral of Certain Emissions From protected through www.regulations.gov Biogenic Sources Approval and Promulgation of or email. The www.regulations.gov Web 4. PSD Greenhouse Gas Tailoring Rule Implementation Plans; Idaho site is an ‘‘anonymous access’’ system, III. Proposed Action which means the EPA will not know IV. Statutory and Executive Order Reviews AGENCY: Environmental Protection your identity or contact information I. Background Agency (EPA). unless you provide it in the body of Section 110 of the Clean Air Act ACTION: Proposed rule. your comment. If you send an email (CAA) specifies the general comment directly to the EPA without SUMMARY: The EPA is proposing to requirements for states to submit SIPs to going through www.regulations.gov your partially approve the May 22, 2014, implement, maintain and enforce the email address will be automatically State Implementation Plan (SIP) National Ambient Air Quality Standards captured and included as part of the submittal from Idaho to revise the SIP (NAAQS) and the EPA’s actions comment that is placed in the public to update the incorporation by reference regarding approval of those SIPs. On docket and made available on the of Federal air quality regulations into May 22, 2014, the State of Idaho (the Internet. If you submit an electronic the SIP. In addition, the EPA is State) submitted a SIP revision to the comment, the EPA recommends that proposing to partially disapprove EPA to account for regulatory updates you include your name and other Idaho’s incorporation by reference of adopted by the Idaho Board of contact information in the body of your certain provisions of the Federal Environmental Quality on October 17, comment and with any disk or CD–ROM prevention of significant deterioration 2013. Idaho incorporates by reference you submit. If the EPA cannot read your (PSD) permitting rules that have been (IBR) various portions of Federal comment due to technical difficulties vacated by a Federal Court. Upon final regulations codified in the Code of and cannot contact you for clarification, action, the Idaho SIP would incorporate Federal Regulations (CFR) into the Rules the EPA may not be able to consider by reference certain Federal regulations for the Control of Air Pollution in Idaho your comment. Electronic files should as of July 1, 2013. (IDAPA 58.01.01). Idaho then submits avoid the use of special characters, any parts of IDAPA 58.01.01 to the EPA for DATES: Comments must be received on form of encryption, and be free of any approval into the Federally-approved or before February 6, 2015. defects or viruses. ADDRESSES: Submit your comments, Idaho SIP (generally those provisions Docket: All documents in the docket identified by Docket ID No. EPA–R10– that relate to the criteria pollutants are listed in the www.regulations.gov OAR–2014–0477, by any of the regulated under section 110 of the CAA index. Although listed in the index, following methods: for which the EPA has promulgated some information is not publicly • www.regulations.gov: Follow the NAAQS or other specific requirements available, e.g., CBI or other information on-line instructions for submitting of section 110). To ensure that its rules the disclosure of which is restricted by comments. remain consistent with the EPA statute. Certain other material, such as • Email: R10-Public_Comments@ requirements, Idaho generally updates copyrighted material, is not placed on epa.gov. the IBR citations in IDAPA 58.01.01 on the Internet and will be publicly • Mail: Heather Valdez, EPA Region an annual basis and submits a SIP available only in hard copy. Publicly 10, Office of Air, Waste and Toxics revision to reflect any changes made to available docket materials are available (AWT–150), 1200 Sixth Avenue, Suite the Federal regulations during that year. either electronically in 900, Seattle, WA 98101. Idaho’s current SIP includes the www.regulations.gov or in hard copy • Hand Delivery: EPA Region 10 approved incorporation by reference of during normal business hours at the Mailroom, 9th Floor, 1200 Sixth specific Federal regulations, revised as Office of Air, Waste and Toxics, EPA Avenue, Suite 900, Seattle, WA 98101. of July 1, 2012, at IDAPA 58.01.01.107 Region 10, 1200 Sixth Avenue, Seattle, Attention: Heather Valdez, Office of Air, ‘‘Incorporation by Reference.’’ WA 98101. Waste and Toxics, (AWT–150). Such II. Analysis of State Submittal deliveries are only accepted during FOR FURTHER INFORMATION CONTACT: normal hours of operation, and special Heather Valdez at: (206) 553–6220, A. Summary and Analysis of Submittal arrangements should be made for [email protected], or the above On May 22, 2014, the State submitted deliveries of boxed information EPA, Region 10 address. for approval into the Idaho SIP updates

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to the incorporation by reference of The excepted provisions, 40 CFR based the implementation rule for the specific Federal regulations revised as of 52.21(i)(5)(i)(c) and 52.21(k)(2), are the 1997 PM2.5 NAAQS solely upon the July 1, 2013. The submitted provisions subject of a Court decision and the effect requirements of part D, subpart 1 of the are found in IDAPA 58.01.01.107 of that decision is discussed in Section CAA, and had failed to address the ‘‘Incorporations by Reference.’’ A II.B.2 below. Idaho’s incorporation by requirements of part D, subpart 4, which description of the submitted provisions reference of 40 CFR 52.21(b)(49)(ii)(a) establishes additional provisions for and how they meet the requirements of related to a deferral of permitting particulate matter nonattainment areas. section 110 of the CAA is provided requirements from bioenergy and other The Court ordered the EPA to below. biogenic stationary sources and 40 CFR ‘‘repromulgate these rules pursuant to In IDAPA 58.01.01.107.02 52.21 related to greenhouse gas (GHG) subpart 4 consistent with this opinion.’’ ‘‘Availability of Reference Materials,’’ emissions are also the subject of recent Id. at 437. As a result of the Court’s paragraph (b) was revised to include a court decisions and are discussed in decision, the EPA withdrew its reference to the State of Idaho statutes. Sections II.B.3 and II.B.4, respectively, guidance for implementing the 2006 3 This is an informational provision below. For the reasons above and for the PM2.5 NAAQS because the guidance describing where documents that are reasons provided in Section II.B.2, II.B.3 was based largely on the remanded rule incorporated by reference elsewhere in and II.B.4, the EPA proposes to promulgated to implement the 1997 4 the rules are available. This revision to determine that paragraph (c) is PM2.5 NAAQS. In response to the Court IDAPA 58.01.01.107.02(b) is consistent consistent with CAA requirements, decision, on June 2, 2014, the EPA with CAA requirements as the revision except for the portion of paragraph (c) promulgated the Identification of merely identifies where reference that incorporates by reference 40 CFR Nonattainment Classification and materials can be obtained and does not 52.21(i)(5)(i)(c) and 52.21(k)(2), which Deadlines for Submission of State itself impose any regulatory the EPA proposes to disapprove as Implementation Plan (SIP) Provisions requirements. inconsistent with CAA requirements. for the 1997 Fine Particle (PM2.5) IDAPA 58.01.01.107.03 ‘‘Documents Paragraphs (b), (d), (e), and (q) of National Ambient Air Quality Standard Incorporated by Reference’’ updates the IDAPA 58.01.01.107.03 incorporate by (NAAQS) and 2006 PM2.5 NAAQS (79 citation dates of specific Federal reference the following provisions FR 31566). This rule promulgated provisions incorporated by reference. revised as of July 1, 2013: (b) National classifications and deadlines under Paragraph (a) incorporates by reference Primary and Secondary Ambient Air subpart 4, part D, title I of the CAA for the Requirements for Preparation, Quality Standards, 40 CFR part 50; (d) 2006 PM2.5 nonattainment areas, Adoption, and Submittal of Ambient Air Monitoring Reference and including the only PM2.5 nonattainment Implementation Plans, 40 CFR part 51, Equivalent Methods, 40 CFR part 53; (e) area in Idaho, Franklin County (Logan with the exception of certain visibility- Ambient Air Quality Surveillance, 40 UT–ID 2006 PM2.5 nonattainment area). related provisions, as of July 1, 2013. CFR part 58; and (q) Determining In light of the EPA’s response to the This updated incorporation by reference Conformity of Federal Actions to State Court decision, we are proposing to of Federal regulations makes paragraph or Federal Implementation Plans, 40 approve into the Idaho SIP Idaho’s (a) consistent with Federal law. The CFR part 93, subpart A, sections 93.100 incorporation by reference at IDAPA incorporation by reference date of July through 93.129, although certain 58.01.01.107.03(a) of the Federal 1, 2013, includes the portion of 40 CFR subsections are specifically excluded nonattainment NSR requirements at 40 part 51 relating to nonattainment New from the State’s incorporation by CFR 51.165 for purposes of meeting the Source Review (NSR) requirements at 40 reference. The EPA proposes to subpart 1 requirements. Because the CFR 51.165, which is relied on as part determine that paragraphs (b), (d), (e), EPA has not yet proposed revisions to of Idaho’s nonattainment area major the nonattainment NSR permitting stationary source permit provisions in and (q) are consistent with CAA requirements. requirements in response to the remand, IDAPA 58.01.01.204. On January 4, the EPA is not evaluating at this time 2013, the U.S. Court of Appeals for the B. Effect of Court Decisions Vacating whether Idaho’s submittal for Franklin District of Columbia issued a decision and Remanding Certain Federal Rules County will require additional revisions related to 40 CFR 51.165. The effect of to satisfy the subpart 4 requirements.5 this decision is discussed below in 1. PM2.5 Nonattainment NSR Provisions Section II.B.1. For the reasons above and On January 4, 2013, the U.S. Court of 2. PM2.5 PSD Provisions for the reasons provided in Section Appeals for the District of Columbia, in As discussed above, IDAPA II.B.1 relating to 40 CFR 51.165, the EPA Natural Resources Defense Council 58.01.01.107.03(c) incorporates by proposes to find that paragraph (a) is (NRDC) v. EPA,1 issued a decision that reference the Federal PSD permitting consistent with CAA requirements. remanded the EPA’s 2007 and 2008 Paragraph (c) of IDAPA rules implementing the 1997 PM2.5 3 Memorandum from Stephen D. Page, 58.01.01.107.03 incorporates by NAAQS. Relevant here, the EPA’s 2008 Implementation Guidance for the 2006 24-Hour reference the Approval and implementation rule addressed by the Fine Particulate (PM2.5) National Ambient Air Promulgation of Implementation Plans, Court decision, ‘‘Implementation of Quality Standards (Mar. 2, 2012). 40 CFR part 52 subparts A and N and 4 Memorandum from Stephen D. Page, New Source Review (NSR) Program for Withdrawal of Implementation Guidance for the appendices D and E, including the Particulate Matter Less Than 2.5 2006 24-Hour Fine Particle (PM2.5) National Federal PSD permitting rules in part 52 Micrometers (PM2.5)’’ (the 2008 NSR Ambient Air Quality Standards (Jun. 6, 2013). 2 5 subpart A at 40 CFR 52.21, as of July 1, PM2.5 Rule), promulgated NSR As discussed above, Idaho’s submittal also 2013. This updated incorporation by includes revisions to the Idaho SIP to update the requirements for implementation of incorporation by reference of the Federal PSD reference, except for the incorporation PM2.5 in both nonattainment areas permitting rule at 40 CFR 52.21. Because the by reference of 40 CFR 52.21(i)(5)(i)(c) (nonattainment NSR) and attainment/ requirements of subpart 4 only pertain to (relating to the PM2.5 significant unclassifiable areas (PSD). The Court nonattainment areas, the EPA does not consider the monitoring level) and 40 CFR concluded that the EPA had improperly portions of the 2008 NSR PM2.5 Rule that address requirements for PM2.5 attainment and 52.21(k)(2)(relating to the PM2.5 unclassifiable areas (including PSD permitting significant impact level), make the 1 706 F.3d 428 (D.C. Cir.). rules) to be affected by the Court’s decision in Idaho SIP consistent with Federal law. 2 73 FR 28321 (May 16, 2008). NRDC v. EPA.

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rules at 40 CFR 52.21. The current Idaho the meantime, the EPA is advising states SIP incorporates 40 CFR 52.21 by SIP incorporates 40 CFR 52.21 by to begin preparations to remove the reference as of July 1, 2012. Idaho’s reference as of July 1, 2012. Idaho’s vacated provisions from state PSD submittal updates the incorporation by submittal updates the incorporation by regulations. reference date of the PSD permitting reference date of the PSD permitting In response to the vacatur of the EPA rules to July 1, 2013. Therefore Idaho’s rules to July 1, 2013 and includes regulations as they relate to the PM2.5 submittal includes revisions to 40 CFR revisions to 40 CFR 52.21(i) (relating to SMC and the PM2.5 SILs, Idaho stated in 52.21(b)(49)(v) (relating to the the significant monitoring concentration the Idaho 2013 IBR Update submittal application of PSD permitting (SMC)) and 40 CFR 52.21(k) (relating to cover letter dated May, 22, 2014 that the requirements to GHG emissions) the significant impact level (SIL)) that State will not apply either the PM2.5 promulgated under the Greenhouse Gas added a SMC and SIL for PM2.5 as part SMC provisions at 40 CFR Tailoring Rule (June 3, 2010, 75 FR of the 2010 PSD PM2.5 Implementation 52.21(i)(5)(i)(c) or the PM2.5 SIL 31514) (Tailoring Rule). Rule (October 20, 2010, 75 FR 64864). provisions at 40 CFR 52.21(k)(2) in On June 23, 2014, the United States On January 22, 2013, the U.S. Court Idaho’s implementation of the PSD Supreme Court, in Utility Air Regulatory of Appeals for the District of Columbia, program. In addition, the May, 22, 2014, Group v. Environmental Protection in Sierra Club v. EPA,6 issued, with cover letter stated that Idaho intends to Agency,8 issued a decision addressing respect to the SMC, a judgment that, remove the vacated provisions to ensure the application of PSD permitting inter alia, vacated the provisions adding consistency with Federal law as soon as requirements to GHG emissions. The the PM2.5 SMC to the Federal practicable. Therefore, consistent with Supreme Court said that the EPA may regulations at 40 CFR 51.166(i)(5)(i)(c) our action on Idaho’s most recent IBR not treat GHGs as an air pollutant for and 52.21(i)(5)(i)(c). In its decision, the update (March 3, 2014, 79 FR 11712), purposes of determining whether a Court held that the EPA did not have we are proposing to partially disapprove source is a major source (or the authority to use SMCs to exempt the Idaho submittal with respect to the modification thereof) required to obtain permit applicants from the statutory incorporation by reference at IDAPA a PSD permit. The Court also said that requirement in section 165(e)(2) of the 58.01.01.107.03(c) of the vacated the EPA could continue to require that CAA that ambient monitoring data for provisions of 40 CFR 52.21 (namely, 40 PSD permits, otherwise required based PM2.5 be included in all PSD permit CFR 52.21(i)(5)(i)(c) and 40 CFR on emissions of pollutants other than applications. Thus, although the PM2.5 52.21(k)(2)). GHGs, contain limitations on GHG SMC was not a required element of a emissions based on the application of state’s PSD program, where a state PSD 3. PSD Deferral of Certain Emissions Best Available Control Technology program contains such a provision and From Biogenic Sources (BACT). In order to act consistently with allows issuance of new permits without In 2011, the EPA revised the its understanding of the Court’s decision requiring ambient PM2.5 monitoring definition of ‘‘subject to regulation’’ at pending further judicial action before data, such application of the vacated 40 CFR 52.21(b)(49)(ii)(a) to defer for the U.S. Court of Appeals for the District SMC would be inconsistent with the three years (until July 21, 2014) PSD of Columbia to effectuate the decision, Court’s opinion and the requirements of permitting requirements to carbon the EPA is not continuing to apply the section 165(e)(2) of the CAA. dioxide (CO2) emissions from bioenergy EPA regulations that would require that At the EPA’s request, the decision and other biogenic stationary sources SIPs include permitting requirements also vacated and remanded to the EPA (Deferral for CO2 Emissions from that the Supreme Court found for further consideration the portions of Bioenergy and Other Biogenic Sources impermissible. Specifically, the EPA is the 2010 PSD PM2.5 Implementation under the Prevention of Significant not applying the requirement that a Rule that revised 40 CFR 51.166 and 40 Deterioration (PSD) and Title V state’s SIP-approved PSD program CFR 52.21 related to SILs for PM2.5. The Programs; Final Rule (July 20, 2011, 76 require that sources obtain PSD permits EPA requested this vacatur and remand FR 43490) (Biogenic CO2 Deferral Rule)). when GHGs are the only pollutant (i) of two of the three provisions in the Idaho’s update to incorporate by that the source emits or has the EPA regulations that contain SILs for reference the EPA’s PSD permitting potential to emit above the major source PM2.5 because the wording of these two rules as of July 1, 2013, includes this thresholds, or (ii) for which there is a SIL provisions (40 CFR 51.166(k)(2) and revision to 40 CFR 52.21(b)(49)(ii)(a). significant emissions increase and a 40 CFR 52.21(k)(2)) is inconsistent with On July 12, 2013 the U.S. Court of significant net emissions increase from the explanation of when and how SILs Appeals for the District of Columbia, in a modification (e.g. 40 CFR should be used by permitting authorities Center for Biological Diversity v. EPA,7 51.166(b)(48)(v)). that we provided in the preamble to the vacated the provisions of the Biogenic The EPA anticipates a need to revise Federal Register publication when we CO2 Deferral Rule. While the Federal PSD rules in light of the promulgated these provisions. The third opportunity to seek rehearing of this Supreme Court decision. In addition, SIL provision (40 CFR 51.165(b)(2)) was D.C. Circuit decision remains open and the EPA anticipates that many states not vacated and remains in effect. We thus the ultimate disposition of the will revise their existing SIP-approved also note that the Court’s decision does Federal regulations implementing the PSD programs in light of the Supreme not affect the PSD increments for PM2.5 Biogenic CO2 Deferral Rule has not yet Court’s decision. The timing and promulgated as part of the 2010 PSD been determined, the deferral expired content of subsequent EPA actions with PM2.5 Implementation Rule. The EPA on July 21, 2014, and by its terms is no respect to the EPA regulations is has amended its regulations to remove longer in effect. expected to be informed by additional the vacated PM2.5 SILs and SMC legal processes before the D.C. Circuit. provisions from the PSD regulations 4. PSD Greenhouse Gas Tailoring Rule The EPA is not expecting states to have (December 9, 2013, 78 FR 73698). The As discussed above, IDAPA revised their existing PSD program EPA will initiate a separate rulemaking 58.01.01.107.03(c) incorporates by regulations at this juncture, before the in the future regarding the PM2.5 SILs reference the Federal PSD permitting D.C. Circuit has addressed these issues that will address the Court’s remand. In rules at 40 CFR 52.21. The current Idaho and before the EPA has revised its

6 703 F.3d 458 (D.C. Cir. 2013). 7 722 F.3d 401 (D.C. Cir. 2013). 8 134 S.Ct. 2427 (2014).

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regulations at 40 CFR 51.166 and 52.21. not add new requirements for sources or • does not contain any unfunded However, the EPA is evaluating PSD modifications that only emit or increase mandate or significantly or uniquely program submissions to assure that the GHGs above the major source threshold affect small governments, as described state’s program correctly addresses or the 75,000 tons per year GHG level in the Unfunded Mandates Reform Act GHGs consistent with the Supreme in 40 CFR 52.21(b)(49)(iv). Rather, the of 1995 (Public Law 104–4); Court’s decision. PALs provisions provide increased • does not have Federalism Idaho’s existing approved SIP flexibility to sources that wish to implications as specified in Executive contains the GHG permitting address their GHG emissions in a PAL. requirements reflected in 40 CFR 52.21, Since this flexibility may still be Order 13132 (64 FR 43255, August 10, as amended in the Tailoring Rule. As a valuable to sources in at least one 1999); result, the PSD permitting program in context described above, we believe that • is not an economically significant Idaho previously approved by the EPA it is appropriate to approve these regulatory action based on health or into the SIP continues to require that provisions into the Idaho SIP at this safety risks subject to Executive Order PSD permits (otherwise required based juncture. 13045 (62 FR 19885, April 23, 1997); on emissions of pollutants other than • GHGs) contain limitations on GHG III. Proposed Action is not a significant regulatory action subject to Executive Order 13211 (66 FR emissions based on the application of The EPA is proposing to partially 28355, May 22, 2001); BACT when sources emit or increase approve the May 22, 2014, submittal GHGs in the amount of 75,000 tons per from Idaho to update the incorporation • is not subject to the requirements of year (measured as carbon dioxide by reference of Federal air quality Section 12(d) of the National equivalent). Although the approved regulations into the SIP. Specifically, we Technology Transfer and Advancement Idaho PSD permitting program may also are proposing to approve the revisions Act of 1995 (15 U.S.C. 272 note) because currently contain provisions that are no to IDAPA 58.01.01.107.02 ‘‘Availability this action does not involve technical longer necessary in light of the Supreme of Reference Materials’’ and IDAPA standards; and Court decision, this does not prevent the 58.01.01.107.03 ‘‘Incorporations by • EPA from approving this SIP does not provide the EPA with the Reference,’’ except that we are discretionary authority to address, as submission. Idaho’s May 22, 2014, SIP proposing to partially disapprove the submission does not add any GHG appropriate, disproportionate human revision to IDAPA 58.01.01.107.03(c) as health or environmental effects, using permitting requirements that are it relates to the incorporation by practicable and legally permissible inconsistent with the Supreme Court reference of specific vacated provisions methods, under Executive Order 12898 decision. While Idaho’s submission at 40 CFR 52.21 (namely, 40 CFR (59 FR 7629, February 16, 1994). incorporates all of 40 CFR 52.21 for 52.21(i)(5)(i)(c) and 40 CFR 52.21(k)(2)) completeness, the submission mostly for the reasons discussed in Section The SIP is not approved to apply on reincorporates PSD permitting II.B.2 of this proposal. Upon final any Indian reservation land or in any requirements for GHGs that are already action, the Idaho SIP would incorporate other area where the EPA or an Indian in the Idaho SIP. by reference specific Federal regulations tribe has demonstrated that a tribe has This revision does add to the Idaho as of July 1, 2013. jurisdiction. In those areas of Indian SIP the elements of the EPA’s 2012 rule implementing Step 3 of the phase-in of IV. Statutory and Executive Order country, the rule does not have tribal PSD permitting requirements for GHGs Reviews implications as specified by Executive described in the Tailoring Rule. 77 FR Order 13175 (65 FR 67249, November 9, Under the CAA, the Administrator is 41051 (July 12, 2012). This rule became 2000), nor will it impose substantial required to approve a SIP submission effective on August 13, 2012. direct costs on tribal governments or that complies with the provisions of the Specifically, the incorporation of the preempt tribal law. CAA and applicable Federal regulations. Step 3 rule provisions will allow GHG- 42 U.S.C. 7410(k); 40 CFR 52.02(a). List of Subjects in 40 CFR Part 52 emitting sources to obtain plantwide applicability limits (PALs) for their GHG Thus, in reviewing SIP submissions, the EPA’s role is to approve state choices, Environmental protection, Air emissions on a carbon dioxide pollution control, Incorporation by equivalent (CO e) basis. The GHG PAL provided that they meet the criteria of 2 the CAA. Accordingly, this action reference, Intergovernmental relations, provisions, as currently written, include Ozone, Particulate matter, Reporting some provisions that may no longer be merely approves state law as meeting Federal requirements and does not and recordkeeping requirements, appropriate in light of the Supreme Volatile organic compounds. Court decision. Since the Supreme impose additional requirements beyond Court has determined that sources and those imposed by state law. For that Authority: 42 U.S.C. 7401 et seq. reason, this action: modifications may not be defined as Dated: December 23, 2014. • Is not a ‘‘significant regulatory ‘‘major’’ solely on the basis of the level Michelle L. Pirzadeh, of GHGs emitted or increased, PALs for action’’ subject to review by the Office GHGs may no longer have value in some of Management and Budget under Acting Regional Administrator, Region 10. situations where a source might have Executive Order 12866 (58 FR 51735, [FR Doc. 2015–00014 Filed 1–6–15; 8:45 am] triggered PSD based on GHG emissions October 4, 1993); BILLING CODE 6560–50–P alone. However, PALs for GHGs may • does not impose an information still have a role to play in determining collection burden under the provisions whether a modification that triggers PSD of the Paperwork Reduction Act (44 for a pollutant other than GHGs should U.S.C. 3501 et seq.); also be subject to BACT for GHGs. These • is certified as not having a provisions, like the other GHG significant economic impact on a provisions discussed previously, will substantial number of small entities likely be revised pending further legal under the Regulatory Flexibility Act (5 action. However, these provisions do U.S.C. 601 et seq.);

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ENVIRONMENTAL PROTECTION comments received will be included in Construction Applications for Sources, AGENCY the public docket without change and Stationary Sources and Portable Sources; may be made available online at WAC 173–400–112, Requirements for 40 CFR Part 52 www.regulations.gov, including any New Sources in Nonattainment Areas— Review for Compliance With [EPA–R10–OAR–2014–0755: FRL–9921–20– personal information provided, unless Regulations; and WAC 173–400–113 Region 10] the comment includes information New Sources in Attainment or claimed to be Confidential Business Unclassifiable Areas—Review for Approval and Promulgation of Information (CBI) or other information Compliance With Regulations Implementation Plans; Washington: the disclosure of which is restricted by B. WAC 173–400–700, Review of Major Prevention of Significant Deterioration statute. Do not submit information that Stationary Sources of Air Pollution and Visibility Protection you consider to be CBI or otherwise C. WAC 173–400–710, Definitions protected through www.regulations.gov D. WAC 173–400–720, Prevention of Significant Deterioration (PSD) AGENCY: Environmental Protection or email. The www.regulations.gov Web Agency. E. WAC 173–400–730, Prevention of site is an ‘‘anonymous access’’ system, Significant Deterioration Application ACTION: Proposed rule. which means the EPA will not know Processing Procedures your identity or contact information F. WAC 173–400–740, PSD Permitting SUMMARY: The Environmental Protection unless you provide it in the body of Public Involvement Requirements and Agency (EPA) is proposing to approve your comment. If you send an email WAC 173–400–171, Public Notice and revisions to the Washington State comment directly to the EPA without Opportunity for Public Comment Implementation Plan (SIP) that were going through www.regulations.gov your G. WAC 173–400–750, Revisions to PSD submitted by the Department of Ecology Permits email address will be automatically (Ecology) on January 27, 2014. These H. WAC 173–400–116, Increment captured and included as part of the Protection revisions implement the comment that is placed in the public preconstruction permitting regulations I. WAC 173–400–117, Special Protection docket and made available on the Requirements for Federal Class I Areas for large industrial (major source) Internet. If you submit an electronic J. Personnel, Funding, and Authority facilities in attainment and comment, the EPA recommends that III. Effect of Recent Court Decisions Vacating unclassifiable areas, called the you include your name and other and Remanding Certain Federal Rules Prevention of Significant Deterioration contact information in the body of your A. Sierra Club v. EPA B. Utility Air Regulatory Group v. EPA (PSD) program. Currently, the PSD comment and with any disk or CD–ROM program in Washington is operated IV. The EPA’s Proposed Action you submit. If the EPA cannot read your A. Rules To Approve into the SIP under a Federal Implementation Plan comment due to technical difficulties (FIP). If finalized, the EPA’s proposed B. Proposed Transfer of Existing EPA- and cannot contact you for clarification, Issued PSD Permits approval of Ecology’s PSD program the EPA may not be able to consider C. Scope of Proposed Action would narrow the current FIP to include your comment. Electronic files should D. The EPA’s Oversight Role only those few facilities, emission avoid the use of special characters, any V. Statutory and Executive Order Reviews categories, and geographic areas for form of encryption, and be free of any I. Background for Proposed Action which Ecology does not have PSD defects or viruses. permitting jurisdiction. The EPA is also Docket: All documents in the On January 27, 2014, Ecology proposing to approve Ecology’s electronic docket are listed in the submitted revisions to update the visibility protection permitting program www.regulations.gov index. Although general air quality regulations contained which overlaps significantly with the listed in the index, some information is in Chapter 173–400 of the Washington PSD program in most cases. not publicly available, i.e., CBI or other Administrative Code (WAC) that apply DATES: Comments must be received on information the disclosure of which is to sources within Ecology’s jurisdiction, or before February 6, 2015. restricted by statute. Certain other including minor new source review, ADDRESSES: Submit your comments, material, such as copyrighted material, major source nonattainment new source identified by Docket ID No. EPA–R10– is not placed on the Internet and will be review (major NNSR), PSD, and the OAR–2014–0755, by any of the publicly available only in hard copy visibility protection (visibility) program. following methods: form. Publicly available docket On October 3, 2014, the EPA finalized A. www.regulations.gov: Follow the materials are available either approval of provisions contained in on-line instructions for submitting electronically in www.regulations.gov or Chapter 173–400 WAC that apply comments. in hard copy during normal business generally to all sources under Ecology’s B. Mail: Jeff Hunt, EPA Region 10, hours at the Office of Air, Waste and jurisdiction, but stated that we would Office of Air, Waste and Toxics (AWT– Toxics, EPA Region 10, 1200 Sixth act separately on the major source- 150), 1200 Sixth Avenue, Suite 900, Avenue, Seattle, WA 98101. specific permitting programs in a Seattle, WA 98101. FOR FURTHER INFORMATION CONTACT: phased approach (79 FR 59653). On _ Jeff C. Email: R10-Public Comments@ Hunt at (206) 553–0256, hunt.jeff@ November 7, 2014, the EPA finalized the epa.gov. epa.gov, or by using the above EPA, second phase in the series, approving D. Hand Delivery: EPA Region 10 Region 10 address. the major NNSR regulations contained Mailroom, 9th Floor, 1200 Sixth in WAC 173–400–800 through 173–400– SUPPLEMENTARY INFORMATION: Avenue, Suite 900, Seattle, WA 98101. 860, as well as other parts of Chapter Throughout this document wherever Attention: Jeff Hunt, Office of Air, Waste 173–400 WAC that support major NNSR ‘‘we’’, ‘‘us’’ or ‘‘our’’ are used, it is and Toxics, AWT–150. Such deliveries (79 FR 66291). are only accepted during normal hours intended to refer to the EPA. In this proposal, the third and final of operation, and special arrangements Table of Contents phase in the series, the EPA is proposing to approve the remainder of should be made for deliveries of boxed I. Background for Proposed Action information. II. Washington SIP Revisions Ecology’s January 27, 2014 submittal, Instructions: Direct your comments to A. WAC 173–400–110, New Source Review covering the PSD and visibility Docket ID No. EPA–R10–OAR–2014– (NSR) for Sources and Portable Sources; requirements for major stationary 0755. The EPA’s policy is that all WAC 173–400–111, Processing Notice of sources under Ecology’s jurisdiction.

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Because the State of Washington does A. WAC 173–400–110, New Source B. WAC 173–400–700, Review of Major not currently have a SIP-approved PSD Review (NSR) for Sources and Portable Stationary Sources of Air Pollution program, the EPA is currently the Clean Sources; WAC 173–400–111, Processing As described in more detail in the Air Act (CAA) PSD permitting authority Notice of Construction Applications for EPA’s July 10, 2014 proposal and in the State, although Ecology has Sources, Stationary Sources and October 3, 2014 final action, Ecology issued most CAA PSD permits in the Portable Sources; WAC 173–400–112, shares permitting jurisdiction with State since 1983 under a delegation Requirements for New Sources in seven local clean air agencies and one agreement with the EPA. See Agreement Nonattainment Areas—Review for other state agency, the Energy Facilities for Partial Delegation of Source Review Compliance With Regulations; and WAC Site Evaluation Council (EFSEC). WAC under the Federal Prevention of 173–400–113 New Sources in 173–400–700, in conjunction with WAC Significant Deterioration (PSD) Attainment or Unclassifiable Areas— 173–400–020, describes how Ecology’s Regulations by the United States Review for Compliance With regulations apply in the local and Environmental Protection Agency, Regulations EFSEC jurisdictions with respect to Region 10, to the Washington PSD. WAC 173–400–700 states that Department of Ecology, dated December As described in more detail in the Ecology’s PSD regulations contained in 10, 2013 (2013 Delegation Agreement). EPA’s July 10, 2014 proposal (79 FR WAC 173–400–700 through 173–400– Approval of Ecology’s PSD rules into 39351) and October 3, 2014 final action 750 apply statewide except where a the SIP will transfer CAA PSD (79 FR 59653), WAC 173–400–110 local clean air agency has received permitting authority from the EPA to through WAC 173–400–113 are the delegation of the Federal PSD program Ecology except for those few facilities, starting points for any source seeking to from the EPA or has a SIP-approved PSD program. WAC 173–400–700 also emissions categories, and geographic construct a new source or modify an states that Ecology’s PSD program, areas for which Ecology does not have existing source under Ecology’s rules, under WAC 173–400–700 through 173– permitting jurisdiction, as described in whether major or minor. Specific 400–750, excludes projects under the Section IV below. The EPA is also provisions in these sections direct sources constructing a ‘‘major’’ source jurisdiction of the EFSEC pursuant to currently the visibility permitting Chapter 80.50 Revised Code of authority in the State although Ecology or making a ‘‘major modification’’ to a ‘‘major’’ source in an attainment or Washington (RCW). At this time, no has issued the visibility permits to local clean air agencies in Washington sources in attainment or unclassifiable unclassifiable area to also comply with the PSD requirements of WAC 173–400– have a delegated or SIP-approved PSD areas under its delegation from the EPA. program. Therefore, the EPA proposes to 700 through WAC 173–400–750. WAC However, the EPA is currently the only approve Ecology’s PSD program, 173–400–110 through WAC 173–400– visibility permitting authority for new contained in WAC 173–400–700 and modified major stationary sources 113 also require major sources and through 173–400–750, as applying in nonattainment areas pursuant to 40 major modifications to comply with the statewide except for those facilities CFR 52.2498(b). Approval of Ecology’s visibility permitting requirements of under EFSEC jurisdiction and other visibility permitting rules into the SIP WAC 173–400–117 for all areas, emission categories and geographic will also transfer to Ecology CAA including nonattainment areas. See, for areas for which Ecology does not have visibility permitting authority, example, WAC 173–400–110(1)(d) for jurisdiction, as discussed below in consistent with the exceptions PSD and WAC 173–400–111(1)(c) for Section IV.C. Scope of Proposed Action. visibility. As discussed in the EPA’s described in Section IV below. The EPA C. WAC 173–400–710, Definitions is also proposing to narrow the current July 2014 proposal, the EPA’s review of PSD FIP contained in 40 CFR 52.2497 WAC 173–400–110 through 173–400– WAC 173–400–710(a) states that for purposes of WAC 173–400–720 through and the visibility permitting FIP 113 expressly did not include a 173–400–750 the definitions in 40 CFR contained in 40 CFR 52.2498 to be determination that these revised 52.21(b), adopted by reference in WAC consistent with the scope of this SIP regulations meet requirements for 173–400–720(4)(a)(vi), shall apply, approval, as also described in Section IV approval of a SIP-approved PSD or visibility permitting program. In this except for the definition of ‘‘secondary below. The EPA will retain an oversight emissions.’’ In the case of secondary role with respect to Ecology’s PSD and action, we are proposing to approve WAC 173–400–110 through 173–400– emissions, Ecology uses the general visibility permitting program if this SIP definition contained in WAC 173–400– approval is finalized as proposed. 113 for purposes of implementing the PSD and visibility permitting programs 030, which is consistent with the court decision in Natural Resources Defense II. Washington SIP Revisions because these provisions require Council v. U.S. EPA, 725 F2d 761 (D.C. compliance with WAC 173–400–700 The specific requirements applicable Cir. 1984) and which the EPA approved through 173–400–750 (which, as to SIP-approved PSD programs are set as part of the Washington SIP on discussed below, are consistent with the forth in 40 CFR 51.166. The EPA’s FIP October 3, 2014 (79 FR 59653). WAC CAA requirements for a PSD permitting for implementing PSD in areas where 173–400–710(b) makes clear that the program) and WAC 173–400–117 states do not have SIP-approved PSD term ‘‘source’’ in WAC 173–400–710 (which, as discussed below, is programs is set forth in 40 CFR 52.21. through 173–400–750, and in 40 CFR consistent with the CAA requirements As explained in more detail below, 52.21 as adopted by reference in for visibility).1 Ecology has, with limited exceptions, Ecology’s regulations, is to be incorporated by reference the EPA’s interpreted to mean ‘‘stationary source’’ as defined in 40 CFR 52.21(b)(5). Under PSD FIP at 40 CFR 52.21 as in effect on 1 This proposed approval for PSD purposes is this definition, a stationary source (or August 13, 2012, to meet the subject to the exceptions and explanations source) does not include emissions requirements of 40 CFR 51.166. described in the EPA’s July 10, 2014 proposal (79 FR 39351) and October 3, 2014 final action (79 FR resulting directly from an internal 59653) of WAC 173–400–110, 173–400–111, and combustion engine for transportation 173–400–113. purposes, from a nonroad engine, or a

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nonroad vehicle as defined in CAA (adopting by reference 40 CFR Lastly, in WAC 173–400–720(4)(b)(iv) section 216. 52.21(a)(2), 52.21(b)(2), and 52.21(b)(3)). Ecology does not incorporate by There are also several important The EPA reviewed Ecology’s reference 40 CFR 52.21(r)(2) because submission and is proposing to approve distinctions between the applicability of state construction time limitation the definitions contained in WAC 173– Ecology’s minor NSR program and its procedures consistent with the Federal 400–710 as consistent with the CAA PSD program that arise from the State’s PSD program are contained in WAC requirements for a SIP-approved PSD 173–400–730, Prevention of Significant definitions of the terms ‘‘modification’’ program. in WAC 173–400–030(48) and ‘‘major Deterioration Application Processing modification’’ in WAC 173–400–710 D. WAC 173–400–720, Prevention of Procedures. The EPA reviewed these and –720, which adopt the federal Significant Deterioration (PSD) exceptions to the incorporation by definitions in 40 CFR 52.21(b)(2) for WAC 173–400–720 generally reference of the Federal regulations and Ecology’s PSD program. First, the incorporates by reference the Federal is proposing to approve them as applicability test for ‘‘modifications’’ PSD program contained in 40 CFR consistent with the CAA. under Ecology’s minor NSR program is 52.21, in effect as of August 13, 2012. In addition to these exceptions to based on the definition of modification Exceptions to the incorporation by Ecology’s incorporation by reference of in CAA section 111(a)(4) and the EPA’s reference are listed in WAC 173–400– 40 CFR 52.21, two other issues merit implementing rules at 40 CFR 60.14, 720(4)(b). First, WAC 173–400– further discussion. First, in response to specifically, that a modification is an 720(4)(b)(i) clarifies when use of the recent court decisions, Ecology has not increase in the emission rate of an word ‘‘Administrator’’ as part of the included in, or has withdrawn from, its incorporation by reference refers to existing facility in terms of kilograms SIP submittal, incorporation by Ecology versus those specific provisions per hour. See WAC 173–400–030(48). In reference of 40 CFR 52.21(i)(5)(i)(c), where ‘‘Administrator’’ continues to contrast, the applicability test for 52.21(k)(2), and 52.21(b)(49)(v). These Ecology’s PSD program is based on a refer to the EPA Administrator. Second, WAC 173–400–720(4)(b)(ii) excludes the provisions, therefore, are not before the ‘‘major modification’’ which is, EPA for approval and would not be part consistent with the Federal PSD PSD Class I area variance provisions of the Washington SIP if this action is program, based on a comparison of contained in 40 CFR 52.21(p)(5) through finalized. Please refer to Section III ‘‘baseline actual emissions’’ before the (8), making the Ecology program more below for a detailed discussion of the change to ‘‘projected actual emissions’’ stringent than the Federal PSD program. court decisions and why the exclusion after the change in terms of tons per WAC 173–400–720(4)(b)(ii) also reflects year. See WAC 173–400–710(a) and Ecology’s use of the state public of these provisions from Ecology’s SIP- 400–173–720(4)(a)(iv), which adopt by participation procedures in WAC 173– approved PSD program is consistent reference the definitions in 40 CFR 400–740, PSD Permitting Public with CAA requirements. 52.21(b)(2). Thus, for any physical or Involvement Requirements rather than Second, WAC 173–400– incorporating by reference the Federal operational change at an existing 720(4)(b)(iii)(C) contains an inadvertent public participation requirements in 40 stationary source, regulated sources and typographical error. Ecology intended to CFR 52.21(q). Third, WAC 173–400– permitting authorities will need to reference the concentrations listed in 720(4)(b)(iii)(A) reflects the size calculate emission changes in terms of threshold in CAA section 169(1) for WAC 173–400–116(3) rather than WAC both kilograms per hour and tons per municipal waste incinerators of 50 tons 173–400–116(2). To avoid confusion, year to determine whether changes are of refuse per day, rather than the EPA is excluding WAC 173–400– subject to minor NSR, PSD, or both. incorporating by reference the threshold 720(4)(b)(iii)(C) from our proposed Second, under Ecology’s minor NSR contained in 40 CFR 52.21(b)(1)(i)(a) approval. However, exclusion of WAC program, new source review of a and (b)(1)(iii)(h) of 250 tons of refuse 173–400–720(4)(b)(iii)(C) from the SIP modification is limited to the emission per day, which has not been revised in has no substantive effect because it was unit or units proposed to be modified the EPA’s regulations to reflect the CAA merely a pointer to the provisions of and the air contaminants whose statutory change. Fourth, WAC 173– WAC 173–400–116(3) which are emissions would increase as a result of 400–720(4)(b)(iii)(B) modifies the consistent with the CAA and proposed the modification. See WAC 173–400– definition of ‘‘significant’’ contained in for approval into the SIP, as discussed 110(1)(d) (‘‘New source review of a 40 CFR 52.21(b)(23)(i) to include a in Section II.H below. Ecology has modification is limited to the emission threshold for ozone depleting advised the EPA correction of this error unit or units proposed to be modified substances of 100 tons per year will be made as soon as practicable. and the air contaminants whose consistent with EPA guidance. See, e.g., emissions would increase as a result of Letter dated March 19, 1998 from John In addition to incorporating by the modification.’’). In contrast, under S. Seitz, Director of EPA’s Office of Air reference pertinent portions of 40 CFR Ecology’s PSD program, as under the Quality Planning and Standards, to Mr. 52.21, WAC 173–400–720 also contains Federal PSD program, Ecology must Kevin Tubbs, Director of Environmental provisions relating to enforcement determine whether the sum of increases Technology, American Standard. Fifth, authority. Subparagraph (3) provides in emissions from new and modified WAC 173–400–720(4)(b)(iii)(D) and (E) that both Ecology and any local air units is ‘‘significant’’ and if so, whether modify the incorporation by reference of permitting authority with jurisdiction there is a net significant emissions 40 CFR 52.21(r) Source Obligation to over a source are authorized to enforce increase from all contemporaneous reflect state reporting requirements the requirement to apply for a PSD emissions increases and decreases at the which are more stringent than the permit if one is required and the major stationary source. See WAC 173– Federal PSD program. Sixth, WAC 173– conditions of a PSD permit. The EPA is 400–110(1)(d) (‘‘Review of a major 400–720(4)(b)(iii)(F) through (J) modify proposing to approve WAC 173–400– modification must comply with WAC the incorporation by reference of 40 CFR 720 as consistent with the CAA 173–400–700 through 173–400–750 or 52.21(aa) Actuals PALs to reflect state requirements for a SIP-approved PSD 173–400–800 through 173–400–860, as procedures but make no changes less program. applicable.’’) and WAC 173–400–720 stringent than the Federal PSD program.

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E. WAC 173–400- 730, Prevention of F. WAC 173–400–740, PSD Permitting substantive requirements as non- Significant Deterioration Application Public Involvement Requirements and administrative revisions but are not Processing Procedures WAC 173–400–171, Public Notice and subject to Ecology’s public involvement This section contains Ecology’s Opportunity for Public Comment requirements. The changes Ecology has permit application and processing WAC 173–400–740 sets out the public characterized as administrative are procedures. These procedures are based participation procedures for Ecology’s similar to the changes the EPA has on the EPA requirements contained in PSD program based on the EPA characterized as administrative or minor 40 CFR 51.166(q) and includes requirements contained in 40 CFR under the Title V permit program and requirements for the processing of 51.166(q). The SIP-approved provisions for which public notice and comment is not required. See 40 CFR 70.7(d) and permit applications, completeness of WAC 173–400–171, which apply to (e)(2). determinations, issuance of final Ecology minor source and major NNSR Neither the EPA’s PSD FIP at 40 CFR permits, and permit appeals. This permitting actions, do not apply to 52.21, nor the EPA’s regulations for SIP- section also includes procedures for permits issued under the PSD program. approved PSD programs at 40 CFR permit extensions. As discussed above, Instead, WAC 173–400–171(1)(a) refers 51.166, has explicit provisions for Ecology has excluded from adoption by all actions regulated by WAC 173–400– revisions to PSD permits. The authority reference in WAC 173–400–720 the 700 through 173–400–750 to the public to revise permits, however, is a extension provision of 40 CFR participation procedures of WAC 173– necessary function of administering a 52.21(r)(2). That provision authorizes 400–740. That regulation requires permitting program, and Ecology’s the EPA to grant extensions to the 18- Ecology to, among other things, provide regulations contain appropriate month construction time limitation in an opportunity for public comment and safeguards on such revisions. The EPA 40 CFR 52.21(r)(2) ‘‘upon a satisfactory hearing, make relevant information reviewed WAC 173–400–750 and is showing that an extension is justified,’’ regarding a PSD permit application and proposing to approve it as consistent but that provision does not provide any Ecology’s preliminary determination on with the CAA. specific criteria or required process that an application available to the public, must be satisfied before the EPA can send a copy of the notice of public H. WAC 173–400–116, Increment exercise its discretion to determine that comment to the applicant, the EPA, and Protection a permit extension should be granted. other identified entities, consider all WAC 173–400–116 establishes The EPA has recently issued guidance timely public comments in issuing a Ecology’s PSD increment protection for the EPA and states with delegated final determination, and provide notice criteria. In particular, WAC 173–400– PSD programs to clarify the EPA’s views of the final determination to specified 116(3) establishes the exclusions from on what constitutes an adequate entities. increment consumption allowed under justification for an extension of the 18- WAC 173–400–171 does apply, 40 CFR 51.166(f). These exclusions month timeframe under 40 CFR however, to any visibility-related include concentrations of particulate 52.21(r)(2) for commencing construction elements for permits subject to major matter, PM10 or PM2.5 attributable to the of a source that has been issued a PSD NNSR requirements under WAC 173– increase in emissions from construction permit. See Memorandum from Stephen 400–800 through WAC 173–400–860. or other temporary emission-related D. Page, Director of EPA’s Office of Air The EPA is proposing to find that WAC activities of new or modified sources; Quality Planning and Standards, to 173–400–740 and WAC 173–400–171 the increase in concentrations Regional Air Division Directors, Region meet the CAA requirements for public attributable to new sources outside the 1–10, Guidance on Extension of participation for both the PSD and United States over the concentrations Prevention of Significant Deterioration visibility permitting programs. attributable to existing sources which (PSD) Permits under 40 CFR 52.21(r)(2), G. Section 173–400–750, Revisions to are included in the baseline dated January 31, 2014 (Extension PSD Permits concentration; and concentrations Guidance). attributable to the temporary increase in Similar to the Federal PSD regulations WAC 173–400–750 contains emissions of sulfur dioxide, particulate at 40 CFR 52.21(r)(2), Ecology’s PSD procedures for revisions to PSD permits. matter, or nitrogen oxides from regulations provide that approval to Under this regulation, except in the case stationary sources which are affected by construct or modify a major stationary of certain categories of revisions a revision to the SIP approved by the source becomes invalid if construction identified as ‘‘administrative,’’ revisions EPA, if certain criteria are met. All three is not commenced within eighteen to PSD permits are subject to the same of these exclusions mirror the language months of the effective date of the public participation requirements that contained in 40 CFR 51.166. Therefore, approval, if construction is apply to initial issuance of PSD permits. the EPA is proposing to approve WAC discontinued for a period of eighteen In addition, prior to revising a PSD 173–400–116 as consistent with the months or more, or if construction is not permit, Ecology must find, among other CAA. completed within a reasonable time. things, that no ambient air quality Ecology has also included in WAC 173– standard or PSD increment will be I. WAC 173–400–117, Special Protection 400–730(5)(b) provisions setting forth exceeded as a result of the change, the Requirements for Federal Class I Areas the criteria and procedures that apply to change will not adversely impact the WAC 173–400–117 consolidates in sources requesting and Ecology in ability of Ecology to determine one section many of the requirements granting extensions to the 18-month compliance with an emissions standard, for new or modified major sources that time period. These provisions are and the revised PSD permit will would impact Federal Class I areas, generally consistent with, but in some continue to require Best Available including the visibility permitting respects more stringent than, EPA’s Control Technology (BACT) for each program. This includes the air quality Extension Guidance. The EPA reviewed new or modified emission unit related values (including visibility) Ecology’s permit application processing approved by the original PSD permit. requirements that support procedures, including the extension Revisions that qualify as implementation of 40 CFR 52.21(p)(1) provisions, and is proposing to approve ‘‘administrative’’ under Ecology’s through (4) for PSD actions in them as consistent with the CAA. regulation are subject to the same attainment and unclassifiable areas, as

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incorporated by reference in WAC 173– On January 22, 2013, the U.S. Court program. In addition, the submittal 400–720. WAC 173–400–117 also of Appeals for the District of Columbia, states that Ecology intends to remove includes the new source review in Sierra Club v. EPA, 703 F.3d 458 the vacated provisions to ensure visibility permitting requirements of 40 (D.C. Cir. 2013), issued, with respect to consistency with Federal law as soon as CFR 51.307 that cover all areas, the SMC, a judgment that, inter alia, practicable. Therefore, the EPA including attainment, unclassifiable, vacated the provisions adding the PM2.5 proposes to determine that Ecology’s and nonattainment areas. The EPA SMC to the Federal regulations at January 27, 2014 SIP submittal is reviewed WAC 173–400–117 and has 51.166(i)(5)(i)(c) and 52.21(i)(5)(i)(c). In consistent with CAA requirements with determined that these provisions are its decision, the Court held that the EPA respect to PM2.5 SILs and SMC. did not have the authority to use SMCs consistent with the requirements for B. Utility Air Regulatory Group v. EPA state plans in 40 CFR 51.166(p) and 40 to exempt permit applicants from the CFR 51.307. Therefore, the EPA statutory requirement in section On June 23, 2014, the United States proposes to approve WAC 173–400–117 165(e)(2) of the CAA that ambient Supreme Court issued a decision as applying statewide except for those monitoring data for PM2.5 be included in addressing the application of PSD facilities under EFSEC jurisdiction and all PSD permit applications. Thus, permitting requirements to greenhouse other emission categories and although the PM2.5 SMC was not a gas (GHG) emissions. See Utility Air geographic areas for which Ecology does required element of a state’s PSD Regulatory Group v. Environmental not have jurisdiction, as discussed program, where a state PSD program Protection Agency, 134 S.Ct. 2427. The below in Section IV.C. Scope of contains such a provision and allows Supreme Court said that the EPA may Proposed Action. issuance of new permits without not treat GHGs as an air pollutant for requiring ambient PM2.5 monitoring purposes of determining whether a J. Personnel, Funding, and Authority data, such application of the vacated source is a major source (or major Section 110(a)(2)(E)(i) of the CAA SMC would be inconsistent with the modification thereof) required to obtain requires that states have adequate Court’s decision and the requirements of a PSD permit. The Court also said that personnel, funding, and authority under section 165(e)(2) of the CAA. the EPA could continue to require that state law to carry out a SIP. Ecology’s At the EPA’s request, the decision PSD permits, otherwise required based authority under state law to carry out also vacated and remanded to the EPA on emissions of pollutants other than the PSD program is discussed above. for further consideration the portions of GHGs, contain limitations on GHG With respect to personnel and funding, the 2010 PSD PM2.5 Implementation emissions based on the application of Ecology has been issuing CAA PSD Rule that revised 40 CFR 51.166 and 40 BACT. In order to act consistently with permits under a full or partial CFR 52.21 related to SILs for PM2.5. The its understanding of the Court’s decision delegation agreement with the EPA EPA requested this vacatur and remand pending further judicial action to since 1983. The staff of engineers and of two of the three provisions in the effectuate the decision, the EPA is not air quality modelers who supported EPA regulations that contain SILs for continuing to apply the EPA regulations Ecology in its issuance of PSD permits PM2.5 because the wording of these two that would require that SIPs include under a delegation agreement with the SIL provisions (40 CFR 51.166(k)(2) and permitting requirements that the EPA will continue to support Ecology’s 40 CFR 52.21(k)(2)) is inconsistent with Supreme Court found impermissible. issuance of PSD permits under a SIP- the explanation of when and how SILs Specifically, the EPA is not applying the approved PSD program. The EPA should be used by permitting authorities requirement that a state’s SIP-approved therefore proposes to find that Ecology that we provided in the preamble to the PSD program require that sources obtain has adequate personnel, funding, and Federal Register publication when we PSD permits when GHGs are the only authority to implement the PSD promulgated these provisions. The third pollutant (i) that the source emits or has program in Washington. SIL provision (40 CFR 51.165(b)(2)) was the potential to emit above the major not vacated and remains in effect. We source thresholds, or (ii) for which there III. Effect of Recent Court Decisions also note that the Court’s decision does is a significant emissions increase and a Vacating and Remanding Certain not affect the PSD increments for PM2.5 significant net emissions increase from Federal Rules promulgated as part of the 2010 PSD a modification (e.g. 40 CFR 51.166(b)(48)(v) and the analogous A. Sierra Club v. EPA PM2.5 Implementation Rule. The EPA recently amended its regulations to definition in 40 CFR 52.21(b)(49)(v) for As discussed in Section II above, remove the vacated PM2.5 SILs and SMC the Federal PSD program). The EPA Ecology’s PSD program generally provisions from the PSD regulations (78 anticipates a need to revise Federal PSD incorporates by reference the Federal FR 73698, December 9, 2013). The EPA rules in light of the Supreme Court’s PSD permitting provisions in 40 CFR will initiate a separate rulemaking in the decision. In addition, the EPA 52.21, in effect as of August 13, 2012. future regarding the PM2.5 SILs that will anticipates that many states will revise This version of 40 CFR 52.21 includes address the Court’s remand. In the their existing SIP-approved PSD 40 CFR 52.21(i) (relating to the meantime, the EPA is advising states to programs in light of the Supreme significant monitoring concentration begin preparations to remove the Court’s decision. The timing and (SMC)) and 40 CFR 52.21(k) (relating to vacated provisions from state PSD content of subsequent EPA actions with the significant impact level (SIL)) that regulations. respect to EPA regulations and state added a SMC and SIL for fine In response to the vacatur of the EPA PSD program approvals are expected to particulate matter as part of the EPA’s regulations as they relate to the PM2.5 be informed by additional legal process final rule Prevention of Significant SMC and the PM2.5 SILs, Washington’s in Federal court. Deterioration for Particulate Matter Less January 27, 2014 submittal clarified that On September 5, 2014, Ecology than 2.5 Micrometers (PM2.5)— Ecology was not including those vacated submitted a letter withdrawing from its Increments, Significant Impact Levels provisions for approval into the SIP, nor January 27, 2014 submittal the portion and Significant Monitoring will Ecology apply either the PM2.5 SMC of WAC 173–400–720(4)(a)(vi) that Concentration (2010 PSD PM2.5 provisions at 40 CFR 52.21(i)(5)(i)(c) or incorporates 40 CFR 52.21(b)(49)(v) by Implementation Rule) (75 FR 64864, the PM2.5 SIL provisions at 40 CFR reference. Ecology notes in its letter that October 20, 2010). 52.21(k)(2) in implementation of its PSD it was not including this provision for

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approval into the SIP to align with the situations where a source might have IV. The EPA’s Proposed Action Supreme Court decision and to prevent triggered PSD based on greenhouse gas delay in the EPA’s proposed action on emissions alone. However, PALs for Consistent with the discussion above, Ecology’s SIP submittal. GHGs may still have a role in the EPA proposes to approve the PSD Ecology’s letter does not discuss the determining whether a modification that and visibility permitting regulations fact that, because it adopted EPA’s PSD triggers PSD for a pollutant other than submitted by Ecology on January 27, regulations as of August 13, 2012, its greenhouse gases should also be subject 2014. This action is the third and final rules include the elements of the EPA’s to BACT for greenhouse gases. These in a series acting on all remaining 2012 rule implementing Step 3 of the provisions, like the other GHG elements contained in Ecology’s January phase-in of PSD permitting provisions discussed previously, will 27, 2014 submittal. The previous two requirements for greenhouse gases likely be revised pending further legal actions consisted of the EPA’s October described in the Tailoring Rule, which action. However, these provisions do 3, 2014 (79 FR 59653) final approval of became effective on August 13, 2012 (77 not add new requirements for sources or general provisions that apply to all air FR 41051, July 12, 2012). The modifications that only emit or increase pollution sources and the EPA’s incorporation of the Step 3 rule greenhouse gases above the major November 7, 2014 (79 FR 66291) final provisions into Washington’s SIP will source threshold or the 75,000 tons per approval of requirements that allow GHG-emitting sources to obtain year (tpy) greenhouse gas level in 40 implement major source NNSR. plantwide applicability limits (PALs) for CFR 52.21(b)(49)(iv). Rather, the PALs A. Rules To Approve Into the SIP their GHG emissions on a carbon provisions provide increased flexibility dioxide equivalent (CO2e) basis. The to sources that choose to address their The EPA proposes to approve into Federal GHG PAL provisions, as GHG emissions in a PAL. Because this Washington’s SIP at 40 CFR part 52, currently written, include some flexibility may still be valuable to subpart WW, the Ecology regulations provisions that may no longer be sources in at least one context described listed in the table below. The EPA also appropriate in light of the Supreme above, we believe that it is appropriate proposes to determine that the general Court decision. Because the Supreme to approve these provisions into the air quality regulations contained WAC Court has determined that sources and Washington SIP at this point in time. 173–400–110, WAC 173–400–111, WAC modifications may not be defined as The EPA is therefore proposing to 173–400–112, WAC 173–400–113, and ‘‘major’’ solely on the basis of the level determine that Ecology’s SIP revision WAC 173–400–171 also meet the EPA’s of greenhouse gases emitted or meets the necessary PSD requirements requirements for PSD and visibility increased, PALs for greenhouse gases at this time, consistent with the permitting and are approved for such may no longer have value in some Supreme Court’s decision. purposes.2

WASHINGTON STATE DEPARTMENT OF ECOLOGY REGULATIONS FOR PROPOSED APPROVAL

State effective State citation Title/subject date Explanation

Chapter 173–400 WAC, General Regulations for Air Pollution Sources

173–400–700 ...... Review of Major Stationary Sources of Air Pollu- 4/1/11 tion. 173–400–710 ...... Definitions ...... 12/29/12 173–400–720 ...... Prevention of Significant Deterioration (PSD) ...... 12/29/12 Except: 173–400–720(4)(a)(i-iv); 173–400– 720(4)(b)(iii)(C); and 173–400–720(4)(a)(vi) with respect to the incorporation by reference of the text in 40 CFR 52.21(b)(49)(v), 52.21(i)(5)(i), and 52.21(k)(2). 173–400–730 ...... Prevention of Significant Deterioration Applica- 12/29/12 tion Processing Procedures. 173–400–740 ...... PSD Permitting Public Involvement Require- 12/29/12 ments. 173–400–750 ...... Revisions to PSD Permits ...... 12/29/12 Except: 173–400–750(2) second sentence. 173–400–116 ...... Increment Protection ...... 9/10/11 173–400–117 ...... Special Protection Requirements for Federal 12/29/12 Class I Areas.

B. Transfer of Existing EPA-Issued PSD general administration of these existing of the EPA permits subject to proposed Permits permits, authority to process and issue transfer were also issued under state any and all subsequent PSD permit authority. For those permits issued In a letter dated October 24, 2014, actions relating to such permits (e.g., solely by the EPA prior to delegation Ecology requested approval to exercise modifications, amendments, or (August 7, 1977 to October 1, 1983), its authority to fully administer the PSD revisions of any nature), and authority Ecology has also demonstrated adequate program with respect to those sources under Ecology’s permitting jurisdiction to enforce such permits. Since October authority to enforce and modify these that have existing PSD permits issued 1, 1983, Ecology has had full or partial permits. Concurrent with our approval by the EPA since August 7, 1977. This delegation of the PSD permitting of Ecology’s PSD program into the SIP, would include authority to conduct program under the FIP. Therefore, most we are proposing that the EPA-issued

2 As discussed above, this proposed approval of exceptions and explanations described in the EPA’s 3, 2014 final action (79 FR 59653) of these these regulations for PSD purposes is subject to the July 10, 2014 proposal (79 FR 39351) and October regulations.

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permits would be transferred to Ecology. the EPA takes final action on this 2. WAC 173–400–116 and 173–400–117 The EPA will retain authority to proposal to approve Ecology’s PSD With respect to the EPA’s proposed administer any PSD permits issued by regulations into the SIP, Ecology will be approval of WAC 173–400–116 and the EPA in Washington prior to August responsible for issuing PSD permits WAC 173–400–117, the SIP-approved 7, 1977. under the SIP for all pollutants except provisions of WAC 173–400–020 govern CO C. Scope of Proposed Action 2 at such sources and the EPA will jurisdictional applicability for those retain its role as the primary authority sections. WAC 173–400–020 states, 1. WAC 173–400–700 Through 173– for issuing PSD permits for CO2 ‘‘[t]he provisions of this chapter shall 400–750 emissions from such sources under 40 apply statewide, except for specific Under WAC 173–400–700, Ecology’s CFR 52.21. PSD permitting of CO2 subsections where a local authority has PSD regulations contained in WAC 173– emissions from such sources is also adopted and implemented 400–700 through 173–400–750 apply excluded from the 2013 Delegation corresponding local rules that apply statewide except where a local clean air Agreement. only to sources subject to local agency has received delegation of the c. Sources in Indian Country jurisdiction as provided under RCW Federal PSD program from the EPA or 70.94.141 and 70.94.331.’’ Because has a SIP-approved PSD program. At The EPA is also excluding from the Ecology will be the only authority in this time, no local clean air agencies scope of this proposed approval of Washington with a SIP-approved PSD have a delegated or SIP-approved PSD Ecology’s PSD program all Indian program that would implement WAC program. The EPA is therefore reservations in the State, except for non- 173–400–116, Increment Protection, the approving Ecology’s regulations trust land within the exterior EPA’s proposed approval will apply contained in WAC 173–400–700 boundaries of the Puyallup Indian statewide. Similarly, the scope of the through 173–400–750 to apply Reservation (also known as the 1873 EPA’s proposed approval of WAC 173– statewide, except for the three situations Survey Area), and any other area where 400–117, Special Protection described below. For these facilities, the EPA or an Indian tribe has Requirements for Federal Class I Areas, emission categories, and geographic demonstrated that a tribe has applies statewide for PSD permits areas, the PSD FIP at 40 CFR 52.21 will jurisdiction. Under the Puyallup Tribe issued by Ecology under WAC 173–400– continue to apply and the EPA will of Indians Settlement Act of 1989, 25 700 through 173–400–750. However, for retain responsibility for issuing permits U.S.C. 1773, Congress explicitly visibility-related elements associated affecting such sources. provided state and local agencies in with permits issued under the major NNSR program, the applicability of a. Sources Under EFSEC’s Jurisdiction Washington authority over activities on non-trust lands within the 1873 Survey WAC 173–400–117 is more complicated By statute, Ecology does not have Area and the EPA is therefore proposing because local clean air agencies have the authority for sources under the to approve Ecology’s PSD regulations authority under state law to have jurisdiction of EFSEC. See Chapter into the SIP with respect to such lands. alternative, but no less stringent, 80.50 RCW. Therefore, the EPA’s permitting requirements. Therefore, proposed approval of Ecology’s PSD d. Scope of PSD FIP in Washington consistent with the EPA’s November 7, program, under WAC 173–400–700 2014 approval of Ecology’s major NNSR through 173–400–750, excludes projects Consistent with the limitations on the program, the EPA’s proposed approval under the jurisdiction of EFSEC. Such scope of the EPA’s proposed approval of of WAC 173–400–117, as it relates to sources will continue to be subject to WAC 173–400–700 through 173–400– permits issues under WAC 173–400–800 the PSD FIP in 40 CFR 52.21 until such 750 in the Washington SIP, the EPA is through 173–400–860, is limited to only time that EFSEC’s PSD rules are proposing to retain, but significantly those counties or sources where the approved into the SIP. narrow, the scope of the current PSD Department of Ecology has direct FIP in 40 CFR 52.2497. The EPA’s jurisdiction. The counties where b. Carbon Dioxide Emissions From Federal PSD permitting rules will Ecology has direct jurisdiction are: Industrial Combustion of Biomass continue to apply to facilities subject to Adams, Asotin, Chelan, Columbia, Under a provision contained in RCW the jurisdiction of the Energy Facilities Douglas, Ferry, Franklin, Garfield, 70.235.020, Greenhouse Gas Emissions Site Evaluation Council; carbon dioxide Grant, Kittitas, Klickitat, Lincoln, Reductions—Reporting Requirements, emissions from facilities with industrial Okanogan, Pend Oreille, San Juan, Ecology is statutorily barred from combustion of biomass in the form of Stevens, Walla Walla, and Whitman regulating certain greenhouse gas fuel wood, wood waste, wood by- Counties. The EPA also notes that under emissions under PSD. Specifically, RCW products and wood residuals; and the SIP-approved provisions of WAC 70.235.020(3) states, ‘‘[e]xcept for facilities located within Indian 173–405–012, WAC 173–410–012, and purposes of reporting, emissions of reservations in Washington (except for WAC 173–415–012, Ecology has carbon dioxide from industrial non-trust land within the exterior statewide, direct jurisdiction for kraft combustion of biomass in the form of boundaries of the Puyallup Indian pulp mills, sulfite pulping mills, and fuel wood, wood waste, wood by- Reservation) and any other area where primary aluminum plants. The EPA is products, and wood residuals shall not the EPA or an Indian tribe has therefore also approving WAC 173–400– be considered a greenhouse gas as long demonstrated that a tribe has 117 in all areas of the state under as the region’s silvicultural jurisdiction. In addition, the EPA’s PSD Ecology’s jurisdiction for those source sequestration capacity is maintained or rules will continue to apply to sources categories. increased.’’ Under the restrictions of subject to PSD permits issued by the this state statute, if the source of carbon EPA prior to August 7, 1977, but only a. Scope of Visibility FIP in Washington dioxide (CO2) emissions is subject to with respect to the general Consistent with the limitations on the PSD because it is major for another administration of any such permits still scope of the EPA’s approval of Ecology’s regulated NSR pollutant, Ecology is in effect (e.g., modifications, major NNSR program, the EPA is prohibited from issuing a PSD permit amendments, or revisions of any proposing to retain, but significantly regulating CO2 emissions. Therefore, if nature). narrow, the scope of the current

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visibility FIP in 40 CFR 52.2498. The Act and applicable Federal regulations. jurisdiction. Consistent with EPA EPA’s Federal visibility new source 42 U.S.C. 7410(k); 40 CFR 52.02(a). policy, the EPA provided a consultation review rules will continue to apply to Thus, in reviewing SIP submissions, the opportunity to the Puyallup Tribe in a facilities subject to the jurisdiction of EPA’s role is to approve state choices, letter dated February 25, 2014. The EPA the Energy Facilities Site Evaluation provided that they meet the criteria of did not receive a request for Council; sources subject to the the CAA. Accordingly, this proposed consultation. jurisdiction of local air authorities; and action merely approves the state’s law List of Subjects in 40 CFR Part 52 facilities located within Indian as meeting Federal requirements and reservations in Washington (except for does not impose additional Environmental protection, Air non-trust land within the exterior requirements beyond those imposed by pollution control, Carbon monoxide, boundaries of the Puyallup Indian the state’s law. For that reason, this Incorporation by reference, Reservation) and any other area where proposed action: Intergovernmental relations, Lead, the EPA or an Indian tribe has • Is not a ‘‘significant regulatory Nitrogen dioxide, Ozone, Particulate demonstrated that a tribe has action’’ subject to review by the Office matter, Reporting and recordkeeping jurisdiction. of Management and Budget under requirements, Sulfur oxides, Volatile organic compounds. D. The EPA’s Oversight Role Executive Order 12866 (58 FR 51735, October 4, 1993); Dated: December 18, 2014. In approving state new source review • does not impose an information Dennis J. McLerran, rules into SIPs, the EPA has a collection burden under the provisions Regional Administrator, Region 10. responsibility to ensure that all states of the Paperwork Reduction Act (44 properly implement their SIP-approved U.S.C. 3501 et seq.); [FR Doc. 2014–30716 Filed 1–6–15; 8:45 am] preconstruction permitting programs. • is certified as not having a BILLING CODE 6560–50–P The EPA’s approval of Ecology’s PSD significant economic impact on a rules does not divest the EPA of the substantial number of small entities ENVIRONMENTAL PROTECTION responsibility to continue appropriate under the Regulatory Flexibility Act (5 AGENCY oversight to ensure that permits issued U.S.C. 601 et seq.); by Ecology are consistent with the • does not contain any unfunded 40 CFR Part 721 requirements of the CAA, Federal mandate or significantly or uniquely regulations, and the SIP. The EPA’s affect small governments, as described [EPA–HQ–OPPT–2014–0760; FRL–9919–23] authority to oversee permit program in the Unfunded Mandates Reform Act RIN 2070–AB27 implementation is set forth in sections of 1995 (Pub. L. 104–4); 113, 167, and 505(b) of the CAA. For • does not have Federalism Proposed Significant New Use Rule on example, section 167 provides that the implications as specified in Executive Certain Chemical Substances EPA shall issue administrative orders, Order 13132 (64 FR 43255, August 10, initiate civil actions, or take whatever 1999); AGENCY: Environmental Protection other action may be necessary to • is not an economically significant Agency (EPA). prevent the construction or modification regulatory action based on health or ACTION: Proposed rule. of a major stationary source that does safety risks subject to Executive Order SUMMARY: EPA is proposing significant not ‘‘conform to the requirements of’’ 13045 (62 FR 19885, April 23, 1997); the PSD program. Similarly, section • is not a significant regulatory action new use rules (SNURs) under the Toxic 113(a)(5) of the CAA provides for subject to Executive Order 13211 (66 FR Substances Control Act (TSCA) for 13 administrative orders and civil actions 28355, May 22, 2001); chemical substances which were the whenever the EPA finds that a state ‘‘is • is not subject to the requirements of subject of premanufacture notices not acting in compliance with’’ any section 12(d) of the National (PMNs). This action would require requirement or prohibition of the CAA Technology Transfer and Advancement persons who intend to manufacture regarding the construction of new Act of 1995 (15 U.S.C. 272 note) because (including import) or process any of the sources or modification of existing this action does not involve technical chemical substances for an activity that sources. Likewise, section 113(a)(1) standards; and is designated as a significant new use by provides for a range of enforcement • does not provide the EPA with the this proposed rule to notify EPA at least remedies whenever the EPA finds that discretionary authority to address, as 90 days before commencing that a person is in violation of an applicable appropriate, disproportionate human activity. The required notification implementation plan. health or environmental effects, using would provide EPA with the In making judgments as to what practicable and legally permissible opportunity to evaluate the intended constitutes compliance with the CAA methods, under Executive Order 12898 use and, if necessary, to prohibit or limit and regulations issued thereunder, the (59 FR 7629, February 16, 1994). the activity before it occurs. EPA looks to (among other sources) its In addition, this rule does not have DATES: Comments must be received on prior interpretations regarding those tribal implications as specified by or before March 9, 2015. statutory and regulatory requirements Executive Order 13175 (65 FR 67249, ADDRESSES: Submit your comments, and policies for implementing them. It November 9, 2000), because it will not identified by docket identification (ID) follows that state actions implementing impose substantial direct costs on tribal number EPA–HQ–OPPT–2014–0760, by the Federal CAA that do not conform to governments or preempt tribal law. As one of the following methods: the CAA may lead to potential oversight discussed above, the SIP is not • Federal eRulemaking Portal: http:// action by the EPA. approved to apply in Indian country www.regulations.gov. Follow the online located in the state, except for non-trust instructions for submitting comments. V. Statutory and Executive Order land within the exterior boundaries of Do not submit electronically any Reviews the Puyallup Indian Reservation (also information you consider to be Under the CAA, the Administrator is known as the 1873 Survey Area), or any Confidential Business Information (CBI) required to approve a SIP submission other area where the EPA or an Indian or other information whose disclosure is that complies with the provisions of the tribe has demonstrated that a tribe has restricted by statute.

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• Mail: Document Control Office intend to export a chemical substance direct final SNURs in separate final (7407M), Office of Pollution Prevention that is the subject of this final rule are rules published in the Federal Register and Toxics (OPPT), Environmental subject to the export notification of April 14, 2014 (71 FR 20800) (FRL– Protection Agency, 1200 Pennsylvania provisions of TSCA section 12(b) (15 9909–25) and September 4, 2014 (79 FR Ave. NW., Washington, DC 20460–0001. U.S.C. 2611(b)) (see 40 CFR 721.20), and 52563) (FRL–9915–69), and is now • Hand Delivery: To make special must comply with the export issuing this proposed rule on these ten arrangements for hand delivery or notification requirements in 40 CFR part chemical substances. The records for the delivery of boxed information, please 707, subpart D. direct final SNURs on these ten follow the instructions at http:// chemical substances were established as www.epa.gov/dockets/contacts.html. B. What should I consider as I prepare dockets EPA–HQ–OPPT–2013–0739, Additional instructions on my comments for EPA? EPA–HQ–OPPT–2014–0166, and EPA– commenting or visiting the docket, 1. Submitting CBI. Do not submit this HQ–OPPT–2014–0277. Those records along with more information about information to EPA through include information considered by the dockets generally, is available at regulations.gov or email. Clearly mark Agency in developing the direct final http://www.epa.gov/dockets. the part or all of the information that rule. Adverse comments received FOR FURTHER INFORMATION CONTACT: For you claim to be CBI. For CBI regarding these substances and the technical information contact: Kenneth information in a disk or CD–ROM that direct final rule are discussed in Unit Moss, Chemical Control Division, Office you mail to EPA, mark the outside of the IV. This proposed rule also includes of Pollution Prevention and Toxics, disk or CD–ROM as CBI and then three SNURs for the three chemicals Environmental Protection Agency, 1200 identify electronically within the disk or which are the subject of PMNs, P–14– Pennsylvania Ave. NW., Washington, CD–ROM the specific information that 267, P–14–268, and P–14–478 and for DC 20460–0001; telephone number: is claimed as CBI. In addition to one which there has not been any previous (202) 564–9232; email address: complete version of the comment that rulemaking. The record for the SNURs [email protected]. includes information claimed as CBI, a on these three chemicals was For general information contact: The copy of the comment that does not established as docket EPA–HQ–OPPT– TSCA-Hotline, ABVI-Goodwill, 422 contain the information claimed as CBI 2014–0760. That record includes South Clinton Ave., Rochester, NY must be submitted for inclusion in the information considered by the Agency 14620; telephone number: (202) 554– public docket. Information so marked in developing these three proposed 1404; email address: TSCA-Hotline@ will not be disclosed except in SNURs. epa.gov. accordance with procedures set forth in B. What is the agency’s authority for SUPPLEMENTARY INFORMATION: 40 CFR part 2. taking this action? 2. Tips for preparing your comments. I. General Information When preparing and submitting your Section 5(a)(2) of TSCA (15 U.S.C. 2604(a)(2)) authorizes EPA to determine A. Does this action apply to me? comments, see the commenting tips at http://www.epa.gov/dockets/ that a use of a chemical substance is a You may be potentially affected by comments.html. ‘‘significant new use.’’ EPA must make this action if you manufacture, process, this determination by rule after or use the chemical substances II. Background considering all relevant factors, contained in this proposed rule. The A. What action is the agency taking? including the four bulleted TSCA following list of North American section 5(a)(2) factors listed in Unit III. Industrial Classification System EPA is proposing these SNURs under Once EPA determines that a use of a (NAICS) codes is not intended to be TSCA section 5(a)(2) for 13 chemical chemical substance is a significant new exhaustive, but rather provides a guide substances which were the subject of use, TSCA section 5(a)(1)(B) requires to help readers determine whether this PMNs P–13–270, P–13–365, P–13–392, persons to submit a significant new use document applies to them. Potentially P–13–393, P–13–471, P–13–563, P–13– notice (SNUN) to EPA at least 90 days affected entities may include: 617, P–13–618, P–13–619, P–14–60, P– before they manufacture or process the • Manufacturers (including 14–267, P–14–268, and P–14–478. chemical substance for that use. Persons importers) or processors of one or more These SNURs would require persons who must report are described in subject chemical substances (NAICS who intend to manufacture or process § 721.5. codes 325 and 324110), e.g., chemical any of these chemical substances for an manufacturing and petroleum refineries. activity that is designated as a C. Applicability of General Provisions This action may also affect certain significant new use to notify EPA at General provisions for SNURs appear entities through pre-existing import least 90 days before commencing that in 40 CFR part 721, subpart A. These certification and export notification activity. In the Federal Register provisions describe persons subject to rules under TSCA. Chemical importers publications of February 12, 2014 (79 the rule, recordkeeping requirements, are subject to the TSCA section 13 (15 FR 8273) (FRL–9903–70), July 8, 2014 exemptions to reporting requirements, U.S.C. 2612) import certification (79 FR 38464) (FRL–9911–05), and July and applicability of the rule to uses requirements promulgated at 19 CFR 9, 2014 (79 FR 39268) (FRL–9910–01), occurring before the effective date of the 12.118 through 12.127; see also 19 CFR EPA issued direct final SNURs on ten of final rule. Provisions relating to user 127.28. Chemical importers must certify these 13 chemical substances, which are fees appear at 40 CFR part 700. that the shipment of the chemical the subject of PMNs P–13–365, P–13– According to 40 CFR 721.1(c), persons substance complies with all applicable 392, P–13–393, P–13–471, P–13–270, P– subject to these SNURs must comply rules and orders under TSCA. Importers 13–563, P–13–617, P–13–618, P–13– with the same notice requirements and of chemical substances subject to a final 619, and P–14–60 in accordance with EPA regulatory procedures as submitters SNUR must certify their compliance the procedures at § 721.160(c)(3)(i). EPA of PMNs under TSCA section 5(a)(1)(A). with the SNUR requirements. The EPA received notices of intent to submit In particular, these requirements policy in support of import certification adverse comments on these SNURs. include the information submission appears at 40 CFR part 707, subpart B. Therefore, as required by requirements of TSCA sections 5(b) and In addition, any persons who export or § 721.160(c)(3)(ii), EPA removed the 5(d)(1), the exemptions authorized by

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TSCA sections 5(h)(1), (h)(2), (h)(3), and evaluate the chemical substance (see PMN Number P–13–365 (h)(5), and the regulations at 40 CFR Unit VII. for more information). Chemical name: MDI modified part 720. Once EPA receives a SNUN, • CFR citation assigned in the polyalkene glycols (generic). EPA may take regulatory action under regulatory text section of this proposed CAS number: Not available. TSCA section 5(e), 5(f), 6, or 7 to control rule. 1. Public comment: One commenter the activities for which it has received The regulatory text section of this claimed SNUR requirements associated the SNUN. If EPA does not take action, proposed rule specifies the activities with P–13–365 for respiratory EPA is required under TSCA section designated as significant new uses. protection, record-keeping, and hazard 5(g) to explain in the Federal Register Certain new uses, including production communication are difficult to its reasons for not taking action. volume limits (i.e., limits on understand and implement and they III. Significant New Use Determination manufacture volume) and other uses add another layer of complexity for designated in this proposed rule, may be potential customers. Customers are Section 5(a)(2) of TSCA states that claimed as CBI. likely to choose existing adhesive EPA’s determination that a use of a system chemicals with no or fewer chemical substance is a significant new PMN Number P–13–270 SNUR requirements which may have use must be made after consideration of Chemical name: Aromatic dibenzoate greater risk potential to avoid having to all relevant factors, including: (generic). comply with the SNUR requirements of • The projected volume of CAS number: Claimed confidential. P–13–365 and similar new chemicals. manufacturing and processing of a 1. EPA response: The proposed SNUR chemical substance. Public comment: A notice of intent to • adversely comment has been submitted. does not contain significant new use The extent to which a use changes reporting requirements pertaining to the type or form of exposure of human EPA response: EPA awaits the adverse hazard communication. EPA has issued beings or the environment to a chemical comment during the open comment numerous SNURs with similar substance. period for this notice of proposed rule- recordkeeping and worker protection • The extent to which a use increases making. requirements that other manufacturers the magnitude and duration of exposure Basis for action: The PMN states that and processors have complied with and of human beings or the environment to the generic (non-confidential) use of the implemented. The comment period for a chemical substance. substance is as a catalyst component. the proposed rule is an opportunity to • The reasonably anticipated manner Based on structural activity relationship provide more detail on specific issues or and methods of manufacturing, (SAR) analysis of test data on analogous challenges posed by the proposed SNUR processing, distribution in commerce, esters, EPA predicts chronic toxicity to reporting requirements, as well as and disposal of a chemical substance. aquatic organisms may occur at In addition to these factors potential suggestions for EPA to better concentrations that exceed 1 ppb of the clarify those requirements. Unless EPA enumerated in TSCA section 5(a)(2), the PMN substance in surface waters. Based statute authorized EPA to consider any receives specific, quantitative on uses described in the PMN, releases information that demonstrates the other relevant factors. of the substance are not expected to To determine what would constitute a chemical substances subject to these result in surface water concentrations proposed SNURs exhibit a lower significant new use for the chemical that exceed 1 ppb. Therefore, EPA has substances that are the subject of these potential for the hazards and risks not determined that the proposed described in the proposed SNUR or that SNURs, EPA considered relevant manufacturing, processing, or use of the information about the toxicity of the they will specifically replace a chemical substance may present an unreasonable substance with a higher potential for chemical substances, likely human risk. EPA has determined, however, that exposures and environmental releases hazards and risks, EPA would expect to should there be any new use of the issue the SNUR as proposed to provide associated with possible uses, taking substance resulting in releases to surface into consideration the four bulleted the Agency with the opportunity to waters exceeding 1 ppb significant review any new uses for potential TSCA section 5(a)(2) factors listed in adverse environmental effects could this unit. unreasonable risks. As described in the occur. Based on this information, the Agency’s ongoing Action Plan for MDI IV. Substances Subject to This Proposed PMN substance meets the concern and TDI, diisocyanates are well-known Rule criteria at § 721.170(b)(4)(ii). dermal and inhalation sensitizers in the EPA is proposing significant new use Recommended testing: EPA has workplace and have been documented and recordkeeping requirements for 13 determined that the results of a to cause asthma, lung damage, and in chemical substances in 40 CFR part 721, sediment-water chironomid life-cycle severe cases, fatal reactions. EPA is subpart E. In this unit, EPA provides the toxicity test using spiked water or concerned about potential health effects following information for each chemical spiked sediment (OECD Test Guideline that may result from exposures of substance: 233); a hydrolysis test (OECD Test consumers or self-employed workers • PMN number. Guideline 111); and a Zahn-Wellens while using products containing • Chemical name. inherent biodegradation test (OECD Test uncured (unreacted) MDI and TDI and • Chemical Abstracts Service (CAS) Guideline 302B) would help its related polyisocyanates (e.g., spray- Registry number (assigned for non- characterize the potential for applied foam sealants, adhesives, and confidential chemical identities). environmental effects of the PMN coatings) or incidental exposures to the • Public comments and EPA’s substance. EPA also recommends that general population while such products response to comments on the ten direct the guidance document on aquatic are used in or around buildings final SNURs subject to PMNs, P–13– toxicity testing of difficult substances including homes or schools. While 365, P–13–392, P–13–393, P–13–471, P– and mixtures (OECD Test Guideline 23) workers may already be using protective 13–270, P–13–563, P–13–617, P–13– be followed to facilitate solubility in the controls in occupational settings, due to 618, P–13–619, and P–14–60. test media, because of the PMN the nature of the potential risk posed by • Tests recommended by EPA to substance’s low water solubility. these chemicals, EPA believes it is provide sufficient information to CFR citation: 40 CFR 721.10735. prudent to emphasize its concern

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through respiratory protection address the potential lung effects and identified concerns for dermal and requirements where there is potential respiratory sensitization if a significant respiratory sensitization, lung and for inhalation exposure, in addition to new use notice was submitted to EPA. mucous membrane irritation, and lung proposing significant new uses such as As stated in the response to comment 2, effects if inhaled based on the low consumer use and application method. EPA is concerned about the health molecular weight isocyanates. As Accordingly, the regulatory action for effects of any residual monomer as well described in the PMN, worker new diisocyanates reflects EPA’s policy as unreacted isocyanate groups on the inhalation exposure is not expected and of consistent treatment of the entire polymer. dermal exposure will be minimal due to class of potentially hazardous Basis for action: The PMN states that the use of adequate personal protective chemicals, regardless of their statutory the generic (non-confidential) use of the equipment and consumer exposure is status as ‘‘new’’ or ‘‘existing’’ chemicals. substance will be as an adhesive not expected because the substance will EPA continues to work to lessen the component. Based on test data on not be used in consumer products. apparent inequity between regulations analogous diisocyanates, EPA identified Therefore, EPA has not determined that of new and existing chemicals. concerns for dermal and respiratory the proposed manufacturing, 2. Public comment: The same sensitization, and lung and mucous processing, or use of the substance may commenter questioned whether EPA’s membrane irritation effects. For the use present an unreasonable risk. EPA has basis for adverse human health concerns described in the PMN, EPA does not determined, however, that any use of stem from the residual diisocyanate expect significant occupational or any the substance without a NIOSH-certified monomer or the P–13–365 substance. consumer inhalation exposure due to particulate respirator (with eye/face The P–13–365 substance is not expected the use of adequate personal protective protection, when dermal and/or ocular to be volatile under any use. equipment and because the substance is exposure is likely) with an APF of at 2. EPA response: The basis for EPA’s not applied using a method that least 10, where there is a potential for health concern is for the P–13–365 generates a vapor, mist, or aerosol nor inhalation exposure, or any use of the substance which includes the presence is it used in a consumer product. PMN substance in a consumer product, of any residual diisocyanate monomer. Therefore, EPA has not determined that may cause serious health effects. Based In addition, EPA finds that there are the proposed manufacturing, on this information, the PMN substance unreacted isocyanate groups in the processing, or use of the substance may meets the concern criteria at polymer and that there is a significant present an unreasonable risk. EPA has § 721.170(b)(3)(ii). percentage of the polymer with determined, however, that any use of Recommended testing: EPA has molecular weight below 1,000. EPA the substance without a NIOSH-certified determined that the results of a skin agrees that the higher molecular weight particulate respirator (with eye/face sensitization test (OPPTS Test Guideline components of the P–13–365 substance protection, when dermal and/or ocular 870.2600) and a 90-day inhalation are not expected to be volatile. The exposure is likely) with an APF of at toxicity test (OPPTS Test Guideline residual diisocyanate monomer is least 10, where there is a potential for 870.3465) would help characterize the expected to be volatile and lower inhalation exposure; any use of the human health effects of the PMN molecular components could be volatile substance in consumer products; or any substance. resulting in a higher potential for use of the substance involving an CFR citation: 40 CFR 721.10719. exposure. application method that generates a 3. Public comment: The same PMN Number P–13–393 vapor, mist, or aerosol, may cause commenter proposes that instead of serious health effects. Based on this Chemical name: 1,3- recommending the 90-day inhalation information, the PMN substance meets Benzenedicarboxylic acid, polymer with toxicity test (OPPTS Test Guideline the concern criteria at 1,4-benzenedicarboxylic acid, 1,4- 870.3465) to characterize the human § 721.170(b)(3)(ii). dimethyl 1,4-benzenedicarboxylate, 2,2- health effects of the P–13–365 Recommended testing: EPA has dimethyl-1,3- substance, EPA should consider a determined that the results of a skin propanediol,dodecanedioic acid, 1,2- Differential Scanning Calorimetric or sensitization test (OPPTS Test Guideline ethanediol, hexanedioic acid, 1,6- Thermogravimetric Analysis of the PMN 870.2600) and a 90-day inhalation hexanediol, alkyldiol ester and aromatic substance to assess vaporization toxicity test (OPPTS Test Guideline isocyanate (generic). potential. The 90-day inhalation toxicity 870.3465) would help characterize the CAS number: Not available. test would require delivery of the PMN human health effects of the PMN Public comment: A notice of intent to substance as a mist or aerosol which the substance. adversely comment has been submitted. associated SNUR prohibits. In addition, CFR citation: 40 CFR 721.10717. EPA response: EPA awaits the adverse the results of the test may be heavily comment during the open comment influenced by the residual diisocyanate PMN Number P–13–392 period for this notice of proposed rule- and not exhibit effects from the PMN Chemical name: Acrylic acid esters making. substance itself. polymers, reaction products with Basis for action: The PMN states that 3. EPA response: In the polyisocyanate (generic). the generic (non-confidential) use of the ‘‘Recommended testing’’ section, the 90- CAS number: Not available. substance will be as an industrial day inhalation toxicity and the dermal Public comment: A notice of intent to adhesive. Based on test data on sensitization tests, are listed as an adversely comment has been submitted. analogous diisocyanates, the Agency appropriate way to characterize EPA response: EPA awaits the adverse identified concerns for dermal and potential health effects. EPA will comment during the open comment respiratory sensitization, lung and consider any other testing, data, or period for this notice of proposed rule- mucous membrane irritation, and lung information that would be relevant to making. effects if inhaled based on the low assessing potential health effects. The Basis for action: The PMN states that molecular weight isocyanates. For the proposed SNUR would require the generic (non-confidential) use of the use described in the PMN, EPA does not notification if a method was used that substance will be for wood, plastic, and expect significant occupational or any generates a mist or aerosol. Conducting automotive paint material. Based on test consumer inhalation exposure due to the 90-day inhalation toxicity test could data on analogous diisocyanates, EPA the use of adequate personal protective

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equipment and because the substance is an APF of at least 10, where there is a characterize the human health effects of not applied using a method that potential for inhalation exposure or the the PMN substance. generates a vapor, mist, or aerosol nor use of the substance in a consumer CFR citation: 40 CFR 721.10741. is the substance used in a consumer product, may cause serious health PMN Numbers P–13–617, P–13–618, and product. Therefore, EPA has not effects. Based on this information, the P–13–619 determined that the proposed PMN substance meets the concern manufacturing, processing, or use of the criteria at § 721.170(b)(1)(i)(C) and Chemical names: (P–13–617) substance may present an unreasonable (b)(3)(ii). Aromatic dicarboxylic acid polymer risk. EPA has determined, however, that Recommended testing: EPA has with alkanediol, alkyl alkyl-2- any use of the substance without a determined that the results of a skin alkenoate,1,4-dialkyl aromatic NIOSH-certified particulate respirator sensitization test (OPPTS Test Guideline dicarboxylate, alkanedioic acid, (with eye/face protection, when dermal 870.2600), a 90-day inhalation toxicity alkanediol, .alpha.-hydro-.omega.- and/or ocular exposure is likely) with test (OPPTS Test Guideline 870.3465) hydroxypoly[oxy an APF of at least 10, where there is a would help characterize the human (alkylalkanediyl)],hydroxyalkyl 2-alkyl- potential for inhalation exposure; any health effects of the PMN substance, and 2-alkenoate, aromatic diisocyanate, use of the substance in consumer a carcinogenicity test (OPPTS Test alkyl-2-alkyl-2-alkenoate and 2-alkyl-2- products; or any use of the substance Guideline 870.4200) would help alkenoic acid (generic), (P–13–618) involving an application method that characterize the human health effects of Alkanedioic acid, polymer with alkyl 2- generates a vapor, mist, or aerosol, may the PMN substance. alkyl-2-alkenoate, alkanedioic acid, cause serious health effects. Based on CFR citation: 40 CFR 721.10723. alkanediol, .alpha.-hydro-.omega.- this information, the PMN substance hydroxypoly[oxy(alkyl-1 2-alkanediyl)], meets the concern criteria at PMN Number P–13–563 hydroxyalkyl 2-alkyl-2-alkenoate, § 721.170(b)(3)(ii). Chemical name: Propylene glycol, aromatic diisocyanate, alkyl 2-alkyl-2- Recommended testing: EPA has alpha isocyanate, omega silane alkenoate and 2-alkyl-2-alkenoic acid determined that the results of a skin (generic). (generic); and (P–13–619) Alkanedioic sensitization test (OPPTS Test Guideline CAS number: Claimed confidential. acid, polymer with alkyl alkylalkenoate, 870.2600) and a 90-day inhalation Public comment: A notice of intent to alkanedioic acid, alkanediol, .alpha.- toxicity test (OPPTS Test Guideline adversely comment has been submitted. hydro-.omega.-hydroxypoly[oxy(alkyl- 870.3465) would help characterize the EPA response: EPA awaits the adverse 1,2-alkanediyl)], aromatic diisocyanate, human health effects of the PMN comment during the open comment alkyl alkylalkeneoate and alkyl-alkenoic substance. period for this notice of proposed rule- acid (generic). CFR citation: 40 CFR 721.10720. CAS numbers: Claimed confidential. making. 1. Public comment: The commenter PMN Number P–13–471 Basis for action: The PMN states that (identity confidential) had concerns Chemical name: Methylene the generic (non-confidential) use of the about the respirators listed as NIOSH- diisocyanate polymer with substance will be as a chemical certified respirators with an APF of at polypropylene glycol and diols intermediate for polyurethane polymers. least 10 meeting the requirements of (generic). Based on test data on analogous § 721.63(a)(4): CAS number: Not available. diisocyanates, EPA identified concerns (A) NIOSH-certified power air- Public comment: A notice of intent to for oncogenicity, mutagenicity, purifying respirator with a hood or adversely comment has been submitted. respiratory and dermal sensitization and helmet and with appropriate gas/vapor EPA response: EPA awaits the adverse lung and mucous membrane irritation. (acid gas, organic vapor, or substance comment during the open comment For the use described in the PMN, EPA specific) cartridges in combination with period for this notice of proposed rule- does not expect significant occupational HEPA filters. making. or any consumer exposure. Therefore, (B) NIOSH-certified continuous flow Basis for action: The PMN states that EPA has not determined that the supplied-air respirator equipped with a the generic (non-confidential) use of the proposed manufacturing, processing, or loose fitting facepiece, hood, or helmet. substance will be as an industrial use of the substance may present an (C) NIOSH-certified negative pressure adhesive. Based on test data on unreasonable risk. EPA has determined, (demand) supplied-air respirator with a analogous diisocyanates, EPA identified however, that any use of the substance full facepiece. concerns for oncogenicity, mutagenicity, without a NIOSH-certified particulate The commenter argues these listed respiratory and dermal sensitization, respirator (with eye/face protection, respirators have, in fact, APFs ranging and lung and mucous membrane when dermal and/or ocular exposure is from 25 to 1,000 and not 10 as required. irritation. As described in the PMN, likely) with an APF of at least 10, where 1. EPA response: The proposed SNUR worker inhalation exposure is not there is a potential for inhalation would require notification if workers expected and dermal exposure will be exposure; any use other than as an who are reasonably likely to be exposed minimal due to the use of adequate intermediate; or any use of the to the PMN substance by inhalation did personal protective equipment, and substance in consumer products, may not use a NIOSH certified respirator consumer exposure is not expected cause serious health effects. Based on with an APF of at least 10. Workers who because the substance will not be used this information, the PMN substance are exposed may use respirators with an in consumer products. Therefore, EPA meets the concern criteria at APF higher than 10. As noted in the has not determined that the proposed § 721.170(b)(1)(i)(C) and (b)(3)(ii). response to the comment on P–13–365, manufacturing, processing, or use of the Recommended testing: EPA has isocyanates are known dermal and substance may present an unreasonable determined that the results of a skin respiratory sensitizers and known to risk. EPA has determined, however, that sensitization test (OPPTS Test Guideline cause other health effects. Thus, EPA any use of the substance without a 870.2600); a 90-day inhalation toxicity requires respirators to provide NIOSH-certified particulate respirator test (OPPTS Test Guideline 870.3465); protection from all potential exposures. (with eye/face protection, when dermal and a carcinogenicity test (OPPTS Test Dermal exposures to isocyanates can and/or ocular exposure is likely) with Guideline 870.4200) would help also possibly cause respiratory

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exposures. EPA has modified language consumer inhalation exposure as the substance in consumer products may in the preamble language to indicate substances are not applied using a cause serious health effects. Based on that respirators that provide dermal method that generates a vapor, mist, or this information, the PMN substance (face/eyes) protection are required if aerosol, nor are they used in a consumer meets the concern criteria at dermal and/or ocular exposures are product. Therefore, EPA has not § 721.170(b)(3)(ii). likely. Consequently, respirators with a determined that the proposed Recommended testing: EPA has higher APF are also indicated because manufacturing, processing, or use of the determined that the results of a skin respirators with an APF of 10 do not substances may present an unreasonable sensitization test (OPPTS Test Guideline provide the desired dermal protection. risk. EPA has determined, however, that 870.2600) and a 90-day inhalation The respirators listed were examples of any use of the substance without a toxicity test (OPPTS Test Guideline respirators that meet the requirements of NIOSH-certified particulate respirator 870.3465) would help characterize the the SNUR. In the proposed regulatory (with eye/face protection, when dermal human health effects of the PMN text, EPA has now also included a and/or ocular exposure is likely) with substance. respirator that has an APF of 10 and an APF of at least 10, where there is a does not protect against dermal or potential for inhalation exposure; any CFR citation: 40 CFR 721.10762. ocular exposures for scenarios where use in consumer products; or any use of PMN Numbers P–14–267 and P–14–268 neither dermal nor ocular exposures are the substances involving an application likely: NIOSH-certified air-purifying method that generates a vapor, mist, or Chemical name: (P–14–267) Poly(oxy- half-mask respirator equipped with aerosol may cause serious health effects. 1,2-ethanediyl), -[ [ (3- appropriate gas/vapor cartridges in Based on this information, the PMN isocyanatomethylphenyl)amino] combination with N100, R100, or P100 substances meet the concern criteria at carbonyl]—methoxy- and (P–14–268) filters or an appropriate canister § 721.170(b)(3)(ii). Carbamic acid, N-(3- incorporating N100, R100, or P100 Recommended testing: EPA has isoocyanatomethylphenyl)-, 2-[2-(2- filters. determined that the results of a skin butoxyethoxy)ethoxy]ethyl ester. 2. Public comment: The same sensitization test (OPPTS Test Guideline CAS numbers: (P–14–267) 51247–55– commenter provided data that shows 870.2600) and a 90-day inhalation 3 and (P–14–268) 304855–14–9. that diphenylmethane diisocyanate toxicity test (OPPTS Test Guideline Basis for action: The PMNs state that (MDI), ‘‘spills when modeled reached 870.3465) would help characterize the the generic (non-confidential) use of the the [threshold limit value] TLV human health effects of the PMN substances will be as an intermediate. concentration 3.8 ft at 38 C (after) 10 h substances. Based on test data on analogous had elapsed (and) the [permissible CFR citation: 40 CFR 721.10742 (P– isocyanates, EPA identified concerns for exposure limit] PEL at 38 C reached 2.2 13–617); 40 CFR 721.10743 (P–03–618) respiratory and dermal sensitization, ft after 10h,’’ and that ‘‘MDI diffuses and 40 CFR 721.10744 (P–13–619). and lung and mucous membrane slowly from the spill and remains close PMN Number P–14–60 irritation. In addition, the Agency to the surface of the spill.’’ The identified concerns for oncogenicity and Chemical name: 1,1′- commenter concludes, ‘‘It appears mutagenicity based on analog test data. methylenebis[isocyanatobenzene], unlikely that respiratory protection For the use described in the PMNs, EPA polymer with polycarboxylic acids in would be required to prevent excessive does not expect significant occupational alkane polyols (generic). employee exposure to MDI vapors dermal or inhalation exposure, and does emitted from the spill.’’ The commenter CAS number: Claimed confidential. Public comment: A notice of intent to not expect consumer exposure as the contends the use of this data as a PMNs are not used in consumer surrogate for P–13–617, P–13–618, and adversely comment has been submitted. products. Therefore, EPA has not P–13–619 is conservative because the EPA response: EPA awaits the adverse determined that the proposed average molecular weight of the comment during the open comment manufacturing, processing, or use of the individual PMNs is much larger than period for this notice of proposed rule- substances may present an unreasonable the 4–4′-MDI used in this data. making. 2. EPA response: EPA acknowledges Basis for action: The PMN states that risk. EPA has determined, however, that that this could be the type of data used the generic (non-confidential) use of the any use of the substance without a to determine if a worker is reasonably substance will be as a coating NIOSH-certified particulate respirator likely to be exposed to the PMN component. Based on test data on (with eye/face protection, when dermal substance. However, it does not address analogous diisocyanates, EPA identified and/or ocular exposure is likely) with every scenario where workers are concerns for dermal and respiratory an APF of at least 10, where there is a reasonably likely to be exposed. EPA is sensitization. As described in the PMN, potential for inhalation exposure; any proposing the SNUR to use the notice worker exposure will be minimal due to use in consumer products; or any use of and comment process to receive and the use of adequate personal protective the substances involving an application evaluate more fully the described data. equipment, and EPA does not expect method that generates a vapor, mist, or EPA will then respond to this comment consumer exposure as the substance is aerosol may cause serious health effects. in more detail in the final rule along not used in a consumer product. Based on this information, the PMN with any additional comments on this Therefore, EPA has not determined that substances meet the concern criteria at topic that are received during the notice the proposed manufacturing, § 721.170(b)(1)(i)(C) and (b)(3)(ii). and comment process. processing, or use of the substance may Recommended testing: EPA has Basis for action: The PMN states that present an unreasonable risk. EPA has determined that the results of a skin the generic (non-confidential) use of the determined, however, that any use of sensitization test (OPPTS Test Guideline substances will be as an adhesive. Based the substance without a NIOSH-certified 870.2600), a 90-day inhalation toxicity on test data on analogous diisocyanates, particulate respirator (with eye/face test (OPPTS Test Guideline 870.3465), EPA identified concerns for dermal and protection, when dermal and/or ocular and a carcinogenicity test (OPPTS Test respiratory sensitization. For the use exposure is likely) with an APF of at Guideline 870.4200) would help described in the PMN, EPA does not least 10, where there is a potential for characterize the human health effects of expect significant occupational or any inhalation exposure or any use of the the PMN substance.

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CFR citation: 40 CFR 721.10790 (P– B. Objectives EPA has received no post-PMN bona 14–267) and 40 CFR 721.10791 (P–14– EPA is proposing these SNURs for fide submissions (per 40 CFR 720.25 268). specific chemical substances that have and § 721.11). Based on this, the Agency believes that it is highly unlikely that PMN Number P–14–478 undergone premanufacture review because the Agency wants to achieve any of the significant new uses Chemical name: Carbonic acid, the following objectives with regard to described in the regulatory text of this dimethyl ester, polymer with 1,4- the significant new uses designated in proposed rule are ongoing. diisocyanatobenzene, 1,6-hexanediol this proposed rule: Therefore, EPA designates January 7, and 1,5-pentanediol. • EPA will receive notice of any 2015 as the cutoff date for determining whether the new use is ongoing. Persons CAS numbers: 1558862–08–0. person’s intent to manufacture or process a listed chemical substance for who begin commercial manufacture or Basis for action: The PMN states that the described significant new use before processing of the chemical substances the substance will be used to make that activity begins. for a significant new use identified as of thermoplastic polyurethanes. Based on • EPA will have an opportunity to that date would have to cease any such test data on analogous diisocyanates, review and evaluate data submitted in a activity upon the effective date of the EPA identified concerns for lung effects SNUN before the notice submitter final rule. To resume their activities, and irritation to mucous membranes, begins manufacturing or processing a these persons would have to first and for respiratory and dermal listed chemical substance for the comply with all applicable SNUR sensitization. As described in the PMN, described significant new use. notification requirements and wait until EPA does not expect significant • EPA will be able to regulate the notice review period, including any occupational dermal or inhalation prospective manufacturers or processors extensions, expires. If such a person met exposure due to use of adequate of a listed chemical substance before the the conditions of advance compliance personal protective equipment; and the described significant new use of that under § 721.45(h), the person would be substance is applied by a method that chemical substance occurs, provided considered exempt from the does not generate a vapor, mist, or that regulation is warranted pursuant to requirements of the SNUR. Consult the aerosol. Further, consumer exposures TSCA section 5(e), 5(f), 6, or 7. Federal Register document of April 24, are not expected as the PMN substance • EPA will ensure that all 1990 (55 FR 17376) for a more detailed is not used in consumer products. manufacturers and processors of the discussion of the cutoff date for ongoing Therefore, EPA has not determined that same chemical substance that is subject uses. the proposed manufacturing, to a TSCA section 5(e) consent order are processing, or use of the substance may VII. Test Data and Other Information subject to similar requirements. present an unreasonable risk. EPA has Issuance of a SNUR for a chemical EPA recognizes that TSCA section 5 determined, however, that any use of substance does not signify that the does not require developing any the substance without a NIOSH-certified chemical substance is listed on the particular test data before submission of particulate respirator (with eye/face TSCA Inventory. Guidance on how to a SNUN. The two exceptions are: protection, when dermal and/or ocular determine if a chemical substance is on 1. Development of test data is exposure is likely) with an APF of at the TSCA Inventory is available on the required where the chemical substance least 10, where there is a potential for Internet at http://www.epa.gov/opptintr/ subject to the SNUR is also subject to a inhalation exposure; any use of the existingchemicals/pubs/tscainventory/ test rule under TSCA section 4 (see substance involving an application index.html. TSCA section 5(b)(1)). method that generates a vapor, mist, or 2. Development of test data may be aerosol; or any use in consumer VI. Applicability of the Proposed Rule necessary where the chemical substance products may cause serious health to Uses Occurring Before the Effective has been listed under TSCA section effects. Based on this information, the Date of the Final Rule 5(b)(4) (see TSCA section 5(b)(2)). PMN substance meets the concern To establish a significant ‘‘new’’ use, In the absence of a TSCA section 4 criteria at § 721.170(b)(3)(ii). EPA must determine that the use is not test rule or a TSCA section 5(b)(4) Recommended testing: EPA has ongoing. The chemical substances listing covering the chemical substance, determined that the results of a skin subject to this proposed rule have persons are required only to submit test sensitization test (OPPTS Test Guideline undergone premanufacture review. In data in their possession or control and 870.2600) and a 90-day inhalation cases where EPA has not received a to describe any other data known to or toxicity test (OPPTS Test Guideline notice of commencement (NOC) and the reasonably ascertainable by them (see 40 870.3465) would help characterize the chemical substance has not been added CFR 720.50). However, upon review of human health effects of the PMN to the TSCA Inventory, no other person PMNs and SNUNs, the Agency has the substance. may commence such activities without authority to require appropriate testing. CFR Citation: 40 CFR 721.10792. first submitting a PMN. Therefore, for Descriptions of tests are provided for chemical substances for which an NOC informational purposes. EPA strongly V. Rationale and Objectives of the has not been submitted EPA concludes encourages persons, before performing Proposed Rule that the designated significant new uses any testing, to consult with the Agency A. Rationale are not ongoing. pertaining to protocol selection. To When chemical substances identified access the OCSPP test guidelines For these 13 PMNs subject to these in this proposed rule are added to the referenced in this document proposed SNURs, EPA determined that TSCA Inventory, EPA recognizes that, electronically, please go to http:// one or more of the criteria of concern before the rule is effective, other persons www.epa.gov/ocspp and select ‘‘Test established at 40 CFR 721.170 were met. might engage in a use that has been Methods and Guidelines.’’ The OECD For additional discussion of the identified as a significant new use. The test guidelines are available from the rationale for the SNURs on these identities for 10 of the 13 chemical OECD Bookshop at http:// chemical substances, see Units II. and substances subject to this proposed rule www.oecdbookshop.org or sourceoecd at IV. of the proposed rule. have been claimed as confidential and http://www.sourceoecd.org.

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The recommended tests specified in under docket ID number EPA–HQ– number of small entities where the Unit IV. may not be the only means of OPPT–2014–0760. following are true: addressing the potential risks of the 1. A significant number of SNUNs X. Statutory and Executive Order chemical substance. However, would not be submitted by small Reviews submitting a SNUN without any test entities in response to the SNUR. data may increase the likelihood that A. Executive Order 12866 2. The SNUR submitted by any small EPA will take action under TSCA entity would not cost significantly more This proposed rule would establish section 5(e), particularly if satisfactory than $8,300. SNURs for 13 chemical substances that test results have not been obtained from A copy of that certification is were the subject of PMNs and a TSCA a prior PMN or SNUN submitter. EPA available in the docket for this proposed section 5(e) consent order. The Office of recommends that potential SNUN rule. Management and Budget (OMB) has submitters contact EPA early enough so This proposed rule is within the exempted these types of actions from that they will be able to conduct the scope of the February 18, 2012 review under Executive Order 12866, appropriate tests. certification. Based on the Economic SNUN submitters should be aware entitled ‘‘Regulatory Planning and Analysis discussed in Unit IX., and that EPA will be better able to evaluate Review’’ (58 FR 51735, October 4, 1993). EPA’s experience promulgating SNURs SNUNs which provide detailed B. Paperwork Reduction Act (PRA) (discussed in the certification), EPA information on the following: believes that the following are true: According to PRA, 44 U.S.C. 3501 et • Human exposure and • A significant number of SNUNs seq., an Agency may not conduct or environmental release that may result would not be submitted by small sponsor, and a person is not required to from the significant new use of the entities in response to the SNUR. respond to a collection of information chemical substances. • Submission of the SNUN would not • Potential benefits of the chemical that requires OMB approval under PRA, cost any small entity significantly more substances. unless it has been approved by OMB than $8,300. • Information on risks posed by the and displays a currently valid OMB Therefore, the promulgation of these chemical substances compared to risks control number. The OMB control SNURs would not have a significant posed by potential substitutes. numbers for EPA’s regulations in title 40 economic impact on a substantial of the CFR, after appearing in the number of small entities. VIII. SNUN Submissions Federal Register, are listed in 40 CFR According to § 721.1(c), persons part 9, and included on the related D. Unfunded Mandates Reform Act submitting a SNUN must comply with collection instrument or form, if (UMRA) the same notice requirements and EPA applicable. Based on EPA’s experience with regulatory procedures as persons The information collection proposing and finalizing SNURs, State, submitting a PMN, including requirements related to this action have local, and Tribal governments have not submission of test data on health and already been approved by OMB been impacted by these rulemakings, environmental effects as described in 40 pursuant to PRA under OMB control and EPA does not have any reasons to CFR 720.50. SNUNs must be submitted number 2070–0012 (EPA ICR No. 574). believe that any State, local, or Tribal on EPA Form No. 7710–25, generated This action would not impose any government would be impacted by this using e-PMN software, and submitted to burden requiring additional OMB proposed rule. As such, EPA has the Agency in accordance with the approval. If an entity were to submit a determined that this proposed rule procedures set forth in 40 CFR 720.40 SNUN to the Agency, the annual burden would not impose any enforceable duty, and § 721.25. E–PMN software is is estimated to average between 30 and contain any unfunded mandate, or available electronically at http:// 170 hours per response. This burden otherwise have any effect on small www.epa.gov/opptintr/newchems. estimate includes the time needed to governments subject to the requirements review instructions, search existing data IX. Economic Analysis of UMRA sections 202, 203, 204, or 205 sources, gather and maintain the data (2 U.S.C. 1501 et seq.). EPA has evaluated the potential costs needed, and complete, review, and of establishing SNUN requirements for submit the required SNUN. E. Executive Order 13132 potential manufacturers and processors Send any comments about the This action would not have a of the chemical substances which were accuracy of the burden estimate, and substantial direct effect on States, on the the subject of PMNs P–13–270, P–13– any suggested methods for minimizing relationship between the national 365, P–13–392, P–13–393, P–13–471, P– respondent burden, including through government and the States, or on the 13–563, P–13–617, P–13–618, P–13– the use of automated collection distribution of power and 619, and P–14–60, during the techniques, to the Director, Collection responsibilities among the various development of the direct final rules. Strategies Division, Office of levels of government, as specified in EPA’s complete economic analyses Environmental Information (2822T), Executive Order 13132, entitled associated with these ten PMNs are Environmental Protection Agency, 1200 ‘‘Federalism’’ (64 FR 43255, August 10, available in the docket under docket ID Pennsylvania Ave. NW., Washington, 1999). numbers EPA–HQ–OPPT–2013–0739, DC 20460–0001. Please remember to F. Executive Order 13175 EPA–HQ–OPPT–2014–0166, and EPA– include the OMB control number in any HQ–OPPT–2014–0277. EPA has correspondence, but do not submit any This proposed rule would not have evaluated the potential costs of completed forms to this address. Tribal implications because it is not establishing SNUN requirements for expected to have substantial direct potential manufacturers and processors C. Regulatory Flexibility Act (RFA) effects on Indian Tribes. This proposed of the chemical substances which were On February 18, 2012, EPA certified rule would not significantly nor the subject of PMNs P–14–267, P–14– pursuant to RFA section 605(b) (5 U.S.C. uniquely affect the communities of 268, and P–14–478. EPA’s complete 601 et seq.), that promulgation of a Indian Tribal governments, nor would it economic analysis associated with these SNUR does not have a significant involve or impose any requirements that three PMNs is available in the docket economic impact on a substantial affect Indian Tribes. Accordingly, the

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requirements of Executive Order 13175, § 721.10735 Aromatic dibenzoate helmet and with appropriate gas/vapor entitled ‘‘Consultation and Coordination (generic). (acid gas, organic vapor, or substance with Indian Tribal Governments’’ (65 FR (a) Chemical substance and specific) cartridges in combination with 67249, November 9, 2000), do not apply significant new uses subject to reporting. HEPA filters (for scenarios where to this proposed rule. (1) The chemical substance identified dermal and/or ocular exposure is also generically as aromatic dibenzoate likely). G. Executive Order 13045 (PMN P–13–270) is subject to reporting (C) NIOSH-certified continuous flow This action is not subject to Executive under this section for the significant supplied-air respirator equipped with a Order 13045, entitled ‘‘Protection of new uses described in paragraph (a)(2) loose fitting facepiece, hood, or helmet Children from Environmental Health of this section. (for scenarios where dermal and/or Risks and Safety Risks’’ (62 FR 19885, (2) The significant new uses are: ocular exposure is also likely). April 23, 1997), because this is not an (i) Releases to water. Requirements as (D) NIOSH-certified negative pressure economically significant regulatory specified in § 721.90(a)(4), (b)(4), and (demand) supplied-air respirator with a action as defined by Executive Order (c)(4) (N=1). full facepiece (for scenarios where 12866, and this action does not address (ii) [Reserved] dermal and/or ocular exposure is also environmental health or safety risks (b) Specific requirements. The likely). disproportionately affecting children. provisions of subpart A of this part (ii) Industrial, commercial, and apply to this section except as modified consumer activities. Requirements as H. Executive Order 13211 by this paragraph. specified in § 721.80(o) and (y)(1). This proposed rule is not subject to (1) Recordkeeping. Recordkeeping (b) Specific requirements. The requirements as specified in Executive Order 13211, entitled provisions of subpart A of this part § 721.125(a), (b), (c), and (k) are ‘‘Actions Concerning Regulations That apply to this section except as modified applicable to manufacturers and Significantly Affect Energy Supply, by this paragraph. Distribution, or Use’’ (66 FR 28355, May processors of this substance. (1) Recordkeeping. Recordkeeping (2) Limitations or revocation of 22, 2001), because this action is not requirements as specified in certain notification requirements. The expected to affect energy supply, § 721.125(a), (b), (c), (d), and (i) are provisions of § 721.185 apply to this distribution, or use and because this section. applicable to manufacturers and action is not a significant regulatory ■ 3. Add § 721.10717 to subpart E to processors of this substance. action under Executive Order 12866. read as follows: (2) Limitations or revocation of certain notification requirements. The I. National Technology Transfer and § 721.10717 MDI modified polyalkene provisions of § 721.185 apply to this Advancement Act (NTTAA) glycols (generic). section. In addition, since this action would (a) Chemical substance and ■ 4. Add § 721.10719 to subpart E to not involve any technical standards, significant new uses subject to reporting. read as follows: NTTAA section 12(d) (15 U.S.C. 272 (1) The chemical substance identified note), would not apply to this action. generically as MDI modified polyalkene § 721.10719 Acrylic acid esters polymers, reaction products with polyisocyanate J. Executive Order 12898 glycols (PMN P–13–365) is subject to (generic). reporting under this section for the This action does not entail special significant new uses described in (a) Chemical substance and considerations of environmental justice paragraph (a)(2) of this section. significant new uses subject to reporting. related issues as delineated by (2) The significant new uses are: (1) The chemical substance identified Executive Order 12898, entitled (i) Protection in the workplace. generically as acrylic acid esters ‘‘Federal Actions to Address Requirements as specified in polymers, reaction products with Environmental Justice in Minority § 721.63(a)(4), (a)(6)(ii) and (a)(6)(v), and polyisocyanate (PMN P–13–392) is Populations and Low-Income (c). When determining which persons subject to reporting under this section Populations’’ (59 FR 7629, February 16, are reasonably likely to be exposed as for the significant new uses described in 1994). required for § 721.63(a)(4), engineering paragraph (a)(2) of this section. control measures (e.g., enclosure or (2) The significant new uses are: List of Subjects confinement of the operation, general (i) Protection in the workplace. 40 CFR Part 721 and local ventilation) or administrative Requirements as specified in § 721.63(a)(4), (a)(6)(ii), (a)(6)(v), and (c). Environmental protection, Chemicals, control measures (e.g., workplace policies and procedures) shall be When determining which persons are Hazardous substances, Reporting and reasonably likely to be exposed as recordkeeping requirements. considered and implemented to prevent exposure, where feasible. The following required for § 721.63(a)(4), engineering Dated: December 20, 2014. National Institute for Occupational control measures (e.g., enclosure or Maria J. Doa, Safety and Health (NIOSH)-certified confinement of the operation, general Director, Chemical Control Division, Office respirators with an assigned protection and local ventilation) or administrative of Pollution Prevention and Toxics. factor (APF) of at least 10 meet the control measures (e.g., workplace Therefore, it is proposed that 40 CFR requirements of § 721.63(a)(4): policies and procedures) shall be chapter I be amended as follows: (A) NIOSH-certified air-purifying half- considered and implemented to prevent mask respirator equipped with exposure, where feasible. The following PART 721—[AMENDED] appropriate gas/vapor cartridges in NIOSH-certified respirators with an APF of at least 10 meet the requirements of ■ combination with N100, R100, or P100 1. The authority citation for part 721 filters or an appropriate canister § 721.63(a)(4): continues to read as follows: incorporating N100, R100, or P100 (A) NIOSH-certified air-purifying half- Authority: 15 U.S.C. 2604, 2607, and filters (for scenarios where neither mask respirator equipped with 2625(c). dermal nor ocular exposure is likely). appropriate gas/vapor cartridges in ■ 2. Add § 721.10735 to subpart E to (B) NIOSH-certified power air- combination with N100, R100, or P100 read as follows: purifying respirator with a hood or filters or an appropriate canister

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incorporating N100, R100, or P100 confinement of the operation, general (i) Protection in the workplace. filters (for scenarios where neither and local ventilation) or administrative Requirements as specified in dermal nor ocular exposure is likely). control measures (e.g., workplace § 721.63(a)(4), (a)(6)(i), (a)(6)(ii), (B) NIOSH-certified power air- policies and procedures) shall be (a)(6)(v), and (c). When determining purifying respirator with a hood or considered and implemented to prevent which persons are reasonably likely to helmet and with appropriate gas/vapor exposure, where feasible. The following be exposed as required for (acid gas, organic vapor, or substance National Institute for Occupational § 721.63(a)(4), engineering control specific) cartridges in combination with Safety and Health (NIOSH)-certified measures (e.g., enclosure or HEPA filters (for scenarios where respirators with an assigned protection confinement of the operation, general dermal and/or ocular exposure is also factor (APF) of at least 10 meet the and local ventilation) or administrative likely). requirements of § 721.63(a)(4): control measures (e.g., workplace (C) NIOSH-certified continuous flow (A) NIOSH-certified air-purifying half- policies and procedures) shall be supplied-air respirator equipped with a mask respirator equipped with considered and implemented to prevent loose fitting facepiece, hood, or helmet appropriate gas/vapor cartridges in exposure, where feasible. The following (for scenarios where dermal and/or combination with N100, R100, or P100 NIOSH-certified respirators with an APF ocular exposure is also likely). filters or an appropriate canister of at least 10 meet the requirements of (D) NIOSH-certified negative pressure incorporating N100, R100, or P100 § 721.63(a)(4). (demand) supplied-air respirator with a filters (for scenarios where neither (A) NIOSH-certified air-purifying half- full facepiece (for scenarios where dermal nor ocular exposure is likely). mask respirator equipped with dermal and/or ocular exposure is also (B) NIOSH-certified power air- appropriate gas/vapor cartridges in likely). purifying respirator with a hood or combination with N100, R100, or P100 (ii) Industrial, commercial, and helmet and with appropriate gas/vapor filters or an appropriate canister consumer activities. Requirements as (acid gas, organic vapor, or substance incorporating N100, R100, or P100 specified in § 721.80(o). specific) cartridges in combination with filters (for scenarios where neither (b) Specific requirements. The HEPA filters (for scenarios where dermal nor ocular exposure is likely). provisions of subpart A of this part dermal and/or ocular exposure is also (B) NIOSH-certified power air- apply to this section except as modified likely). purifying respirator with a hood or by this paragraph. (C) NIOSH-certified continuous flow helmet and with appropriate gas/vapor (1) Recordkeeping. Recordkeeping supplied-air respirator equipped with a (acid gas, organic vapor, or substance requirements as specified in loose fitting facepiece, hood, or helmet specific) cartridges in combination with § 721.125(a), (b), (c), (d) and (i) are (for scenarios where dermal and/or HEPA filters (for scenarios where applicable to manufacturers and ocular exposure is also likely). dermal and/or ocular exposure is also processors of this substance. (D) NIOSH-certified negative pressure likely). (2) Limitations or revocation of (demand) supplied-air respirator with a (C) NIOSH-certified continuous flow certain notification requirements. The full facepiece (for scenarios where supplied-air respirator equipped with a provisions of § 721.185 apply to this dermal and/or ocular exposure is also loose fitting facepiece, hood, or helmet section. likely). (for scenarios where dermal and/or ■ 5. Add § 721.10720 to subpart E to (ii) Industrial, commercial, and ocular exposure is also likely). read as follows: consumer activities. Requirements as (D) NIOSH-certified negative pressure specified in § 721.80(o) and (y)(1). (demand) supplied-air respirator with a § 721.10720 1,3-Benzenedicarboxylic acid, (b) Specific requirements. The full facepiece (for scenarios where polymer with 1,4-benzenedicarboxylic acid, provisions of subpart A of this part dermal and/or ocular exposure is also 1,4-dimethyl 1,4-benzenedicarboxylate, 2,2- apply to this section except as modified likely). dimethyl-1,3-propanediol, dodecanedioic acid, 1,2-ethanediol, hexanedioic acid, 1,6- by this paragraph. (ii) Industrial, commercial, and hexanediol, alkyldiol ester and aromatic (1) Recordkeeping. Recordkeeping consumer activities. Requirements as isocyanate (generic). requirements as specified in specified in § 721.80(o). § 721.125(a), (b), (c), (d), and (i) are (b) Specific requirements. The (a) Chemical substance and applicable to manufacturers and provisions of subpart A of this part significant new uses subject to reporting. processors of this substance. apply to this section except as modified (1) The chemical substance identified (2) Limitations or revocation of by this paragraph. generically as 1,3-Benzenedicarboxylic certain notification requirements. The (1) Recordkeeping. Recordkeeping acid, polymer with 1,4- provisions of § 721.185 apply to this requirements as specified in benzenedicarboxylic acid, 1,4-dimethyl section. § 721.125(a), (b), (c), (d), and (i) are 1,4-benzenedicarboxylate, 2,2-dimethyl- ■ 6. Add § 721.10723 to subpart E to applicable to manufacturers and 1,3-propanediol,dodecanedioic acid, read as follows: processors of this substance. 1,2-ethanediol, hexanedioic acid, 1,6- (2) Limitations or revocation of hexanediol, alkyldiol ester and aromatic § 721.10723 Methylene diisocyanate certain notification requirements. The isocyanate (PMN P–13–393) is subject to polymer with polypropylene glycol and provisions of § 721.185 apply to this diols (generic). reporting under this section for the section. significant new uses described in (a) Chemical substance and ■ 7. Add § 721.10741 to subpart E to paragraph (a)(2) of this section. significant new uses subject to reporting. read as follows: (2) The significant new uses are: (1) The chemical substance identified (i) Protection in the workplace. generically as methylene diisocyanate § 721.10741 Polyalkylene glycol, alpha Requirements as specified in § 721.63 polymer with polypropylene glycol and isocyanate, omega silane (generic). (a)(4), (a)(6)(ii), (a)(6)(v), and (c). When diols (PMN P–13–471) is subject to (a) Chemical substance and determining which persons are reporting under this section for the significant new uses subject to reporting. reasonably likely to be exposed as significant new uses described in (1) The chemical substance identified required for § 721.63(a)(4), engineering paragraph (a)(2) of this section. generically as polyalkylene glycol, alpha control measures (e.g., enclosure or (2) The significant new uses are: isocyanate, omega silane (PMN P–13–

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563) is subject to reporting under this § 721.10742 Aromatic dicarboxylic acid (ii) Industrial, commercial, and section for the significant new uses polymer with alkanediol, alkyl alkyl-2- consumer activities. Requirements as described in paragraph (a)(2) of this alkenoate, 1,4-dialkyl aromatic specified in § 721.80(o) and (y)(1). dicarboxylate, alkanedioic acid, alkanedioic section. acid.alkanediol, .alpha.-hydro-.omega.- (b) Specific requirements. The (2) The significant new uses are: hydroxypoly[oxy(alkyl-alkanediyl)], provisions of subpart A of this part (i) Protection in the workplace. hydroxyalkyl 2-alkyl-2-alkenoate, aromatic apply to this section except as modified Requirements as specified in diisocyanate, alkyl 2-alkyl-2-alkenoate and by this paragraph. § 721.63(a)(4), (a)(6)(ii), (a)(6)(v), and (c). 2-alkyl-2-alkenoic acid (generic). (1) Recordkeeping. Recordkeeping When determining which persons are (a) Chemical substance and requirements as specified in reasonably likely to be exposed as significant new uses subject to reporting. § 721.125(a), (b), (c), (d), and (i) are required for § 721.63(a)(4), engineering (1) The chemical substance identified applicable to manufacturers and control measures (e.g., enclosure or generically as aromatic dicarboxylic processors of this substance. confinement of the operation, general acid polymer with alkanediol, alkyl (2) Limitations or revocation of and local ventilation) or administrative alkyl-2-alkenoate, 1,4-dialkyl aromatic certain notification requirements. The control measures (e.g., workplace dicarboxylate, alkanedioic acid, provisions of § 721.185 apply to this policies and procedures) shall be alkanedioic acid. alkanediol, .alpha.- section. considered and implemented to prevent hydro-.omega.-hydroxypoly[oxy(alkyl- ■ 9. Add § 721.10743 to subpart E to exposure, where feasible. The following alkanediyl)], hydroxyalkyl 2-alkyl-2- read as follows: National Institute for Occupational alkenoate, aromatic diisocyanate, alkyl 2-alkyl-2-alkenoate and 2-alkyl-2- § 721.10743 Alkanedioic acid, polymer Safety and Health (NIOSH)-certified with alkyl 2-alkyl-2-alkenoate, alkanedioic respirators with an assigned protection alkenoic acid (PMN P–13–617) is acid, alkanediol, .alpha.-hydro-.omega.- factor (APF) of at least 10 meet the subject to reporting under this section hydroxypoly[oxy(alkyl-1 2-alkanediyl)], requirements of § 721.63(a)(4). for the significant new uses described in hydroxyalkyl 2-alkyl-2-alkenoate, aromatic (A) NIOSH-certified air-purifying half- paragraph (a)(2) of this section. diisocyanate, alkyl 2-alkyl-2-alkenoate and mask respirator equipped with (2) The significant new uses are: 2-alkyl-2-alkenoic acid (generic). (i) Protection in the workplace. appropriate gas/vapor cartridges in (a) Chemical substance and Requirements as specified in combination with N100, R100, or P100 significant new uses subject to reporting. § 721.63(a)(4), (a)(6)(ii), (a)(6)(v), and (c). filters or an appropriate canister (1) The chemical substance identified When determining which persons are incorporating N100, R100, or P100 generically as alkanedioic acid, polymer reasonably likely to be exposed as filters (for scenarios where neither with alkyl 2-alkyl- 2-alkenoate, required for § 721.63(a)(4), engineering dermal nor ocular exposure is likely). alkanedioic acid, alkanediol, .alpha.- control measures (e.g., enclosure or hydro-.omega.-hydroxypoly[oxy(alkyl-1 (B) NIOSH-certified power air- confinement of the operation, general purifying respirator with a hood or 2-alkanediyl)], hydroxyalkyl 2-alkyl-2- and local ventilation) or administrative alkenoate, aromatic diisocyanate, alkyl helmet and with appropriate gas/vapor control measures (e.g., workplace 2-alkyl-2-alkenoate and 2-alkyl-2- (acid gas, organic vapor, or substance policies and procedures) shall be alkenoic acid (PMN P–13–618) is specific) cartridges in combination with considered and implemented to prevent subject to reporting under this section HEPA filters (for scenarios where exposure, where feasible. The following for the significant new uses described in dermal and/or ocular exposure is also National Institute for Occupational paragraph (a)(2) of this section. likely). Safety and Health (NIOSH)-certified (2) The significant new uses are: (C) NIOSH-certified continuous flow respirators with an assigned protection (i) Protection in the workplace. supplied-air respirator equipped with a factor (APF) of at least 10 meet the Requirements as specified in loose fitting facepiece, hood, or helmet requirements of § 721.63(a)(4). (for scenarios where dermal and/or (A) NIOSH-certified air-purifying half- § 721.63(a)(4), (a)(6)(ii), (a)(6)(v), and (c). ocular exposure is also likely). mask respirator equipped with When determining which persons are reasonably likely to be exposed as (D) NIOSH-certified negative pressure appropriate gas/vapor cartridges in required for § 721.63(a)(4), engineering (demand) supplied-air respirator with a combination with N100, R100, or P100 control measures (e.g., enclosure or full facepiece (for scenarios where filters or an appropriate canister confinement of the operation, general dermal and/or ocular exposure is also incorporating N100, R100, or P100 and local ventilation) or administrative likely). filters (for scenarios where neither control measures (e.g., workplace (ii) Industrial, commercial, and dermal nor ocular exposure is likely). (B) NIOSH-certified power air- policies and procedures) shall be consumer activities. Requirements as considered and implemented to prevent specified in § 721.80(g) and (o). purifying respirator with a hood or helmet and with appropriate gas/vapor exposure, where feasible. The following (b) Specific requirements. The (acid gas, organic vapor, or substance National Institute for Occupational provisions of subpart A of this part specific) cartridges in combination with Safety and Health (NIOSH)-certified apply to this section except as modified HEPA filters (for scenarios where respirators with an assigned protection by this paragraph. dermal and/or ocular exposure is also factor (APF) of at least 10 meet the (1) Recordkeeping. Recordkeeping likely). requirements of § 721.63(a)(4). requirements as specified in (C) NIOSH-certified continuous flow (A) NIOSH-certified air-purifying half- § 721.125(a), (b), (c), (d), and (i) are supplied-air respirator equipped with a mask respirator equipped with applicable to manufacturers and loose fitting facepiece, hood, or helmet appropriate gas/vapor cartridges in processors of this substance. (for scenarios where dermal and/or combination with N100, R100, or P100 (2) Limitations or revocation of ocular exposure is also likely). filters or an appropriate canister certain notification requirements. The (D) NIOSH-certified negative pressure incorporating N100, R100, or P100 provisions of § 721.185 apply to this (demand) supplied-air respirator with a filters (for scenarios where neither section. full facepiece (for scenarios where dermal nor ocular exposure is likely). ■ 8. Add § 721.10742 to subpart E to dermal and/or ocular exposure is also (B) NIOSH-certified power air- read as follows: likely). purifying respirator with a hood or

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helmet and with appropriate gas/vapor National Institute for Occupational persons are reasonably likely to be (acid gas, organic vapor, or substance Safety and Health (NIOSH)-certified exposed as required for § 721.63(a)(4), specific) cartridges in combination with respirators with an assigned protection engineering control measures (e.g., HEPA filters (for scenarios where factor (APF) of at least 10 meet the enclosure or confinement of the dermal and/or ocular exposure is also requirements of § 721.63(a)(4). operation, general and local ventilation) likely). (A) NIOSH-certified air-purifying half- or administrative control measures (e.g., (C) NIOSH-certified continuous flow mask respirator equipped with workplace policies and procedures) supplied-air respirator equipped with a appropriate gas/vapor cartridges in shall be considered and implemented to loose fitting facepiece, hood, or helmet combination with N100, R100, or P100 prevent exposure, where feasible. The (for scenarios where dermal and/or filters or an appropriate canister following National Institute for ocular exposure is also likely). incorporating N100, R100, or P100 Occupational Safety and Health (D) NIOSH-certified negative pressure filters (for scenarios where neither (NIOSH)-certified respirators with an (demand) supplied-air respirator with a dermal nor ocular exposure is likely). assigned protection factor (APF) of at full facepiece (for scenarios where (B) NIOSH-certified power air- least 10 meet the requirements of dermal and/or ocular exposure is also purifying respirator with a hood or § 721.63(a)(4). likely). helmet and with appropriate gas/vapor (A) NIOSH-certified air-purifying half- (ii) Industrial, commercial, and (acid gas, organic vapor, or substance mask respirator equipped with consumer activities. Requirements as specific) cartridges in combination with appropriate gas/vapor cartridges in specified in § 721.80(o) and (y)(1). HEPA filters (for scenarios where combination with N100, R100, or P100 (b) Specific requirements. The dermal and/or ocular exposure is also filters or an appropriate canister provisions of subpart A of this part likely). incorporating N100, R100, or P100 apply to this section except as modified (C) NIOSH-certified continuous flow filters (for scenarios where neither by this paragraph. supplied-air respirator equipped with a dermal nor ocular exposure is likely). (1) Recordkeeping. Recordkeeping loose fitting facepiece, hood, or helmet (B) NIOSH-certified power air- requirements as specified in (for scenarios where dermal and/or purifying respirator with a hood or § 721.125(a), (b), (c), (d), and (i) are ocular exposure is also likely). helmet and with appropriate gas/vapor applicable to manufacturers and (D) NIOSH-certified negative pressure (acid gas, organic vapor, or substance processors of this substance. (demand) supplied-air respirator with a specific) cartridges in combination with (2) Limitations or revocation of full facepiece (for scenarios where HEPA filters (for scenarios where certain notification requirements. The dermal and/or ocular exposure is also dermal and/or ocular exposure is also provisions of § 721.185 apply to this likely). likely). section. (ii) Industrial, commercial, and (C) NIOSH-certified continuous flow ■ 10. Add § 721.10744 to subpart E to consumer activities. Requirements as supplied-air respirator equipped with a read as follows: specified in § 721.80(o) and (y)(1). loose fitting facepiece, hood, or helmet (b) Specific requirements. The (for scenarios where dermal and/or § 721.10744 Alkanedioic acid, polymer provisions of subpart A of this part ocular exposure is also likely). with alkyl alkyl-alkenoate, alkanedioic acid, apply to this section except as modified (D) NIOSH-certified negative pressure alkanediol, .alpha.-hydro-.omega.- by this paragraph. hydroxypoly[oxy(alkyl-1,2-alkanediyl)], (demand) supplied-air respirator with a aromatic diisocyanate, alkyl alkyl- (1) Recordkeeping. Recordkeeping full facepiece (for scenarios where alkeneoate and alkyl-alkenoic acid requirements as specified in dermal and/or ocular exposure is also (generic). § 721.125(a), (b), (c), (d), and (i) are likely). (a) Chemical substance and applicable to manufacturers and (ii) Industrial, commercial, and significant new uses subject to reporting. processors of this substance. consumer activities. Requirements as (1) The chemical substance identified (2) Limitations or revocation of specified in § 721.80(o). generically as alkanedioic acid, polymer certain notification requirements. The (b) Specific requirements. The with alkyl alkylalkenoate, alkanedioic provisions of § 721.185 apply to this provisions of subpart A of this part section. apply to this section except as modified acid, alkanediol, .alpha.-hydro-.omega.- ■ hydroxypoly[oxy(alkyl- 1,2-alkanediyl)], 11. Add § 721.10762 to subpart E to by this paragraph. aromatic diisocyanate, alkyl alkyl- read as follows: (1) Recordkeeping. Recordkeeping alkeneoate and alkyl-alkenoic acid ′ requirements as specified in § 721.10762 1,1 - § 721.125(a), (b), (c), (d), and (i) are (PMN P–13–619) is subject to reporting methylenebis[isocyanatobenzene], polymer under this section for the significant with polycarboxylic acids in alkane polyols applicable to manufacturers and new uses described in paragraph (a)(2) (generic). processors of this substance. (2) Limitations or revocation of of this section. (a) Chemical substance and certain notification requirements. The (2) The significant new uses are: significant new uses subject to reporting. provisions of § 721.185 apply to this (i) Protection in the workplace. (1) The chemical substance identified section. Requirements as specified in generically as 1,1′- ■ 12. Add § 721.10790 to subpart E to § 721.63(a)(4), (a)(6)(ii), (a)(6)(v), and (c). methylenebis[isocyanatobenzene], read as follows: When determining which persons are polymer with polycarboxylic acids in reasonably likely to be exposed as alkane polyols (PMN P–14–60) is § 721.10790 Poly(oxy-1,2-ethanediyl), -[ [ required for § 721.63(a)(4), engineering subject to reporting under this section (3- control measures (e.g., enclosure or for the significant new uses described in isocyanatomethylphenyl)amino]carbonyl]— confinement of the operation, general paragraph (a)(2) of this section. methoxy-. and local ventilation) or administrative (2) The significant new uses are: (a) Chemical substance and significant control measures (e.g., workplace (i) Protection in the workplace. new uses subject to reporting. (1) The policies and procedures) shall be Requirements as specified in chemical substance identified as considered and implemented to prevent § 721.63(a)(4), (a)(6)(i) through (a)(6)(iv), poly(oxy-1,2-ethanediyl), -[ [ (3-isocyan exposure, where feasible. The following and (c). When determining which atomethylphenyl)amino]carbonyl]—

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methoxy- (PMN P–14–267; CAS No. § 721.10791 Carbamic acid, N-(3- manufacturers and processors of this 51247–55–3) is subject to reporting isoocyanatomethylphenyl)-, 2-[2-(2- substance. butoxyethoxy)ethoxy]ethyl ester. under this section for the significant (2) Limitations or revocation of new uses described in paragraph (a)(2) (a) Chemical substance and significant certain notification requirements. The of this section. new uses subject to reporting. (1) The provisions of § 721.185 apply to this (2) The significant new uses are: chemical substance identified as section. (i) Protection in the workplace. carbamic acid, N-(3- ■ 14. Add § 721.10792 to subpart E to Requirements as specified in isoocyanatomethylphenyl)-, 2-[2-(2- read as follows: § 721.63(a)(4), (a)(6)(ii), (a)(6)(v), and (c). butoxyethoxy)ethoxy]ethyl ester (PMN When determining which persons are P–14–268; CAS No. 304855–14–9) is § 721.10792 Carbonic acid, dimethyl ester, reasonably likely to be exposed as subject to reporting under this section polymer with 1,4-diisocyanatobenzene, 1,6- required for § 721.63(a)(4), engineering for the significant new uses described in hexanediol and 1,5-pentanediol. control measures (e.g., enclosure or paragraph (a)(2) of this section. (a) Chemical substance and confinement of the operation, general (2) The significant new uses are: significant new uses subject to reporting. and local ventilation) or administrative (i) Protection in the workplace. (1) The chemical substance identified as control measures (e.g., workplace Requirements as specified in carbonic acid, dimethyl ester, polymer policies and procedures) shall be § 721.63(a)(4), (a)(6)(ii), (a)(6)(v), and (c). with 1,4-diisocyanatobenzene, 1,6- considered and implemented to prevent When determining which persons are hexanediol and 1,5-pentanediol (PMN exposure, where feasible. The following reasonably likely to be exposed as P–14–478; CAS No. 1558862–08–0) is National Institute for Occupational required for § 721.63(a)(4), engineering subject to reporting under this section Safety and Health (NIOSH)-certified control measures (e.g., enclosure or for the significant new uses described in respirators with an assigned protection confinement of the operation, general paragraph (a)(2) of this section. factor (APF) of at least 10 meet the and local ventilation) or administrative (2) The significant new uses are: requirements of § 721.63(a)(4): control measures (e.g., workplace (i) Protection in the workplace. (A) NIOSH-certified air-purifying half- policies and procedures) shall be Requirements as specified in mask respirator equipped with considered and implemented to prevent § 721.63(a)(4), (a)(6)(i), (a)(6)(ii), and (c). appropriate gas/vapor cartridges in exposure, where feasible. The following When determining which persons are combination with N100, R100, or P100 National Institute for Occupational reasonably likely to be exposed as filters or an appropriate canister Safety and Health (NIOSH)-certified required for § 721.63(a)(4), engineering incorporating N100, R100, or P100 respirators with an assigned protection control measures (e.g., enclosure or filters (for scenarios where neither factor (APF) of at least 10 meet the confinement of the operation, general dermal nor ocular exposure is likely). requirements of § 721.63(a)(4). and local ventilation) or administrative (B) NIOSH-certified power air- (A) NIOSH-certified air-purifying half- control measures (e.g., workplace purifying respirator with a hood or mask respirator equipped with policies and procedures) shall be helmet and with appropriate gas/vapor appropriate gas/vapor cartridges in considered and implemented to prevent (acid gas, organic vapor, or substance combination with N100, R100, or P100 exposure, where feasible. The following specific) cartridges in combination with filters or an appropriate canister National Institute for Occupational HEPA filters (for scenarios where incorporating N100, R100, or P100 Safety and Health (NIOSH)-certified dermal and/or ocular exposure is also filters (for scenarios where neither respirators with an assigned protection likely). dermal nor ocular exposure is likely). factor (APF) of at least 10 meet the (C) NIOSH-certified continuous flow (B) NIOSH-certified power air- requirements of § 721.63(a)(4). supplied-air respirator equipped with a purifying respirator with a hood or loose fitting facepiece, hood, or helmet helmet and with appropriate gas/vapor (A) NIOSH-certified air-purifying half- (for scenarios where dermal and/or (acid gas, organic vapor, or substance mask respirator equipped with ocular exposure is also likely). specific) cartridges in combination with appropriate gas/vapor cartridges in (D) NIOSH-certified negative pressure HEPA filters (for scenarios where combination with N100, R100, or P100 (demand) supplied-air respirator with a dermal and/or ocular exposure is also filters or an appropriate canister full facepiece (for scenarios where likely). incorporating N100, R100, or P100 dermal and/or ocular exposure is also (C) NIOSH-certified continuous flow filters (for scenarios where neither likely). supplied-air respirator equipped with a dermal nor ocular exposure is likely). (ii) Industrial, commercial, and (B) NIOSH-certified power air- consumer activities. Requirements as loose fitting facepiece, hood, or helmet (for scenarios where dermal and/or purifying respirator with a hood or specified in § 721.80(o) and (y)(1). helmet and with appropriate gas/vapor (b) Specific requirements. The ocular exposure is also likely). (D) NIOSH-certified negative pressure (acid gas, organic vapor, or substance provisions of subpart A of this part specific) cartridges in combination with apply to this section except as modified (demand) supplied-air respirator with a full facepiece (for scenarios where HEPA filters (for scenarios where by this paragraph. dermal and/or ocular exposure is also (1) Recordkeeping. Recordkeeping dermal and/or ocular exposure is also likely). requirements as specified in § 721.125 likely). (a), (b), (c), (d) and (i) are applicable to (ii) Industrial, commercial, and (C) NIOSH-certified continuous flow manufacturers and processors of this consumer activities. Requirements as supplied-air respirator equipped with a substance. specified in § 721.80(o) and (y)(1). loose fitting facepiece, hood, or helmet (2) Limitations or revocation of (b) Specific requirements. The (for scenarios where dermal and/or certain notification requirements. The provisions of subpart A of this part ocular exposure is also likely). provisions of § 721.185 apply to this apply to this section except as modified (D) NIOSH-certified negative pressure section. by this paragraph. (demand) supplied-air respirator with a CFR citation: 40 CFR 721.10790. (1) Recordkeeping. Recordkeeping full facepiece (for scenarios where ■ 13. Add § 721.10791 to subpart E to requirements as specified in § 721.125 dermal and/or ocular exposure is also read as follows: (a), (b), (c), (d) and (i) are applicable to likely).

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(ii) Industrial, commercial, and (1) Recordkeeping. Recordkeeping provisions of § 721.185 apply to this consumer activities. Requirements as requirements as specified in § 721.125 section. specified in § 721.80(o) and (y)(1). (a), (b), (c), (d) and (i) are applicable to [FR Doc. 2014–30829 Filed 1–6–15; 8:45 am] (b) Specific requirements. The manufacturers and processors of this BILLING CODE 6560–50–P provisions of subpart A of this part substance. apply to this section except as modified (2) Limitations or revocation of by this paragraph. certain notification requirements. The

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Notices Federal Register Vol. 80, No. 4

Wednesday, January 7, 2015

This section of the FEDERAL REGISTER All comments are placed in the record Dated: December 29, 2014. contains documents other than rules or and are available for public inspection Gregory C. Smith, proposed rules that are applicable to the and copying, including names and Acting Associate Deputy Chief, National public. Notices of hearings and investigations, addresses when provided. The public Forest System. committee meetings, agency decisions and may inspect comments received at the rulings, delegations of authority, filing of [FR Doc. 2015–00001 Filed 1–6–15; 8:45 am] petitions and applications and agency USDA Forest Service Washington BILLING CODE 3410–11–P statements of organization and functions are Office—Yates Building. Please call examples of documents appearing in this ahead to facilitate entry into the section. building. FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF COMMERCE Chalonda Jasper, Committee International Trade Administration DEPARTMENT OF AGRICULTURE Coordinator, by phone at 202–260–9400 Forest Service or email at [email protected]. Individuals who use telecommunication [C–570–971] devices for the deaf (TDD) may call the National Advisory Committee for Multilayered Wood Flooring From the Federal Information Relay Service Implementation of the National Forest People’s Republic of China: (FIRS) at 1–800–877–8339 between 8 System Land Management Planning Preliminary Results of Countervailing a.m. and 8 p.m., Eastern Standard Time, Rule Duty Administrative Review and Intent Monday through Friday. To Rescind the Review in Part; 2012 AGENCY: Forest Service, USDA. SUPPLEMENTARY INFORMATION: The ACTION: Notice of meetings. purpose of this meeting is to provide AGENCY: Enforcement and Compliance, ongoing advice and recommendations International Trade Administration, SUMMARY: The National Advisory on implementation of the planning rule. Department of Commerce. Committee for Implementation of the This meeting is open to the public. SUMMARY: The Department of Commerce National Forest System Land The following business will be (the Department) is conducting an Management Planning Rule Committee conducted: administrative review of the (Committee) will meet in Charlotte, 1. Continue deliberations on countervailing duty (CVD) order on North Carolina. Attendees may also formulating advice for the Secretary, multilayered wood flooring (wood participate via webinar and conference 2. Discussion of Committee work flooring) from the People’s Republic of call. The Committee operates in group findings and progress, including China (PRC). The period of review compliance with the Federal Advisory finalizing the Citizen and Government (POR) is January 1, 2012, through Committee Act (FACA) (Pub. L. 92– Guides, and finalizing recommendations December 31, 2012. We preliminarily 463). Additional information relating to put forth from the Turnover working find that the mandatory respondents the Committee can be found by visiting group, Fine Furniture (Shanghai) Limited (Fine the Committee’s Web site at: http:// 3. Dialogue with key Forest Service Furniture) and The Lizhong Wood www.fs.usda.gov/main/planningrule/ personel and stakeholders from Region Industry Limited Company of Shanghai committee. 8, the Southern Region, regarding the (Lizhong) (also known as ‘‘Shanghai DATES: The meetings will be held, inland management plan revision Lizhong Wood Products Co., Ltd.’’) person and via webinar/conference call processes currently underway in the received countervailable subsidies on the following dates and times: region, during the POR. We also intend to 4. Conduct work group break-out • Tuesday, January 27, 2015 from 9 rescind the review of one company, sessions to advance each work group a.m. to 5:15 p.m. EST. Changzhou Hawd Flooring Co., Ltd. and plan work group tasks for upcoming • Wednesday, January 28, 2015 from (Changzhou), which timely certified that months, 9 a.m. to 5:15 p.m. EST. it had no shipments of subject • 5. Hear public comments, and merchandise to the United States during Thursday, January 29, 2015 from 9 6. Administrative tasks. a.m. to 3 p.m. EST. the POR. Interested parties are invited to The agenda and a summary of the comment on these preliminary results. ADDRESSES: The meeting will be located meeting will be posted on the at Holiday Inn City Center; 230 North Committee’s Web site within 21 days of DATES: Effective Date: January 7, 2015. College Street Charlotte, NC 28202. the meeting. FOR FURTHER INFORMATION CONTACT: For anyone who would like to attend Meeting Accommodations: If you are Mary Kolberg or Joshua Morris, AD/CVD via webinar and/or conference call, a person requiring reasonable Operations, Office I, Enforcement and please visit the Web site listed above or accommodation, please make requests Compliance, International Trade contact the person listed in the section in advance for sign language Administration, U.S. Department of titled FOR FURTHER INFORMATION interpreting, assistive listening devices Commerce, 14th Street and Constitution CONTACT. Written comments must be or other reasonable accommodation for Avenue NW., Washington, DC 20230; sent to USDA Forest Service, Ecosystem access to the facility or proceedings by telephone: (202) 482–1785 or (202) 482– Management Coordination, 201 14th contacting the person listed in the 1779, respectively. Street SW., Mail Stop 1104, section titled FOR FURTHER INFORMATION Scope of the Order Washington, DC 20250–1104. CONTACT. All reasonable Comments may also be sent via email to accommodation requests are managed Multilayered wood flooring is Chalonda Jasper at [email protected]. on a case by case basis. composed of an assembly of two or

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more layers or plies of wood veneer(s) 1 Memorandum), which is hereby information.4 We intend to seek that in combination with a core. Imports of adopted by this notice. information prior to our final results the subject merchandise are provided The Preliminary Decision and issue a post-preliminary decision for under the following subheadings of Memorandum is a public document and reflecting our review and analysis of the Harmonized Tariff Schedule of the is on file electronically via Enforcement that information. United States (HTSUS): 4412.31.0520; and Compliance’s Antidumping and Preliminary Results of the Review 4412.31.0540; 4412.31.0560; Countervailing Duty Centralized In accordance with 19 CFR 4412.31.2510; 4412.31.2520; 2 Electronic Service System (ACCESS). 351.221(b)(4)(i), we calculated a 4412.31.4040; 4412.31.4050; ACCESS is available to registered users 4412.31.4060; 4412.31.4070; countervailable subsidy rate for each of at https://access.trade.gov and in the the mandatory respondents, Fine 4412.31.5125; 4412.31.5135; Central Records Unit, Room 7046 of the 4412.31.5155; 4412.31.5165; Furniture and Lizhong. main Department building. In addition, For the non-selected respondents, we 4412.31.6000; 4412.31.9100; a complete version of the Preliminary 4412.32.0520; 4412.32.0540; have followed the Department’s Decision Memorandum can be accessed practice, which is to base the subsidy 4412.32.0560; 4412.32.2510; directly on the internet at http:// 4412.32.2520; 4412.32.3125; rates on an average of the subsidy rates enforcement.trade.gov/frn/index.html. 4412.32.3135; 4412.32.3155; calculated for those companies selected The signed Preliminary Decision 4412.32.3165; 4412.32.3175; for individual review, excluding de Memorandum and the electronic 4412.32.3185; 4412.32.5600; minimis rates or rates based entirely on versions of the Preliminary Decision 5 4412.39.1000; 4412.39.3000; adverse facts available. We have Memorandum are identical in content. 4412.39.4011; 4412.39.4012; preliminarily assigned to the non- selected respondents the simple average 4412.39.4019; 4412.39.4031; Intent To Rescind Administrative of the rates calculated for Fine Furniture 4412.39.4032; 4412.39.4039; Review, in Part and Lizhong. We have used a simple 4412.39.4051; 4412.39.4052; average rather than a weighted average 4412.39.4059; 4412.39.4061; On April 4, 2014, we received a due to inconsistent units of measure in 4412.39.4062; 4412.39.4069; timely filed no-shipment certification the publicly ranged quantity and value 4412.39.5010; 4412.39.5030; from Changzhou. Because there is no data. 4412.39.5050; 4412.94.1030; evidence on the record to indicate that this company had entries of subject We preliminarily find the 4412.94.1050; 4412.94.3105; countervailable subsidy rates for the merchandise during the POR, pursuant 4412.94.3111; 4412.94.3121; producers/exporters under review to be to 19 CFR 351.213(d)(3), we intend to 4412.94.3131; 4412.94.3141; as follows: 4412.94.3160; 4412.94.3171; rescind the review with respect to 4412.94.4100; 4412.94.5100; Changzhou. A final decision regarding Net subsidy 4412.94.6000; 4412.94.7000; whether to rescind the review of this Producer/exporter rate (percent) 4412.94.8000; 4412.94.9000; company will be made in the final 4412.94.9500; 4412.99.0600; results of this review. Shanghai Lizhong Wood 4412.99.1020; 4412.99.1030; Products Co., Ltd (aka The Methodology 4412.99.1040; 4412.99.3110; Lizhong Wood Industry Limited Company of 4412.99.3120; 4412.99.3130; We have conducted this review in Shanghai); Linyi Youyou 4412.99.3140; 4412.99.3150; accordance with section 751(a)(1)(A) of Wood Co., Ltd ...... 0.95 4412.99.3160; 4412.99.3170; the Tariff Act of 1930, as amended (the Fine Furniture (Shanghai) 4412.99.4100; 4412.99.5100; Act). For each of the subsidy programs Limited; Great Wood 4412.99.5710; 4412.99.6000; found countervailable, we preliminarily (Tonghua) Limited; FF 4412.99.7000; 4412.99.8000; find that there is a subsidy, i.e., a Plantation (Shishou) Lim- ited ...... 0.99 4412.99.9000; 4412.99.9500; government-provided financial 4418.71.2000; 4418.71.9000; A&W (Shanghai) Woods Co., contribution that gives rise to a benefit Ltd ...... 0.97 4418.72.2000; and 4418.72.9500. to the recipient, and that the subsidy is Anhui Suzhou Dongda Wood While HTSUS subheadings are specific.3 For a full description of the Co., Ltd ...... 0.97 provided for convenience and customs methodology underlying our Armstrong Wood Products purposes, the written product conclusions, see Preliminary Decision (Kunshan) Co., Ltd ...... 0.97 description remains dispositive. Memorandum. Baishan Huafeng Wood Product Co., Ltd ...... 0.97 A full description of the scope of the We were not able to make a Baiying Furniture Manufac- order is contained in the memorandum preliminary determination concerning turer Co., Ltd ...... 0.97 from Gary Taverman, Associate Deputy the countervailability of certain Baroque Timber Industries Assistant Secretary for Antidumping programs because we require additional (Zhongshan) Co., Ltd ...... 0.97 and Countervailing Duty Operations, to Changbai Mountain Develop- ment and Protection Zone Paul Piquado, Assistant Secretary for 2 On November 24, 2014, Enforcement and Hongtu Wood Industrial Enforcement and Compliance, Compliance changed the name of Enforcement and Co., Ltd ...... 0.97 ‘‘Decision Memorandum for Preliminary Compliance’s AD and CVD Centralized Electronic Results of Countervailing Duty Service System (‘‘IA ACCESS’’) to AD and CVD Centralized Electronic Service System (‘‘ACCESS’’). 4 See Preliminary Decision Memorandum at Administrative Review: Multilayered The Web site location was changed from http:// ‘‘Analysis of Programs—II. Programs For Which Wood Flooring from the People’s iaaccess.trade.gov to http://access.trade.gov. The More Information Is Required.’’ Republic of China’’ dated concurrently Final Rule changing the references to the 5 See, e.g., Certain Pasta From Italy: Preliminary with this notice (Preliminary Decision Regulations can be found at 79 FR 69046 Results of the 13th (2008) Countervailing Duty (November 20, 2014). Administrative Review, 75 FR 18806, 18811 (April 3 See sections 771(5)(B) and (D) of the Act 13, 2010), unchanged in Certain Pasta from Italy: 1 A ‘‘veneer’’ is a thin slice of wood, rotary cut, regarding financial contribution; section 771(5)(E) Final Results of the 13th (2008) Countervailing Duty sliced or sawed from a log, bolt or flitch. Veneer is of the Act regarding benefit; and, section 771(5A) Administrative Review, 75 FR 37386 (June 29, referred to as a ply when assembled. of the Act regarding specificity. 2010).

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Disclosure and Public Comment Producer/exporter Net subsidy Producer/exporter Net subsidy rate (percent) rate (percent) We will disclose to parties in this Chinafloors Timber (China) Jiashan Hui Jia Le Decora- proceeding the calculations performed Co., Ltd ...... 0.97 tion Material Co., Ltd ...... 0.97 in reaching the preliminary results Dalian Dajen Wood Co., Ltd 0.97 Jilin Forest Industry Jinqiao within five days of the date of public Dalien Huade Wood Product Flooring Group Co., Ltd .... 0.97 announcement of these preliminary Co., Ltd ...... 0.97 Jilin Xinyuan Wooden Indus- results.6 As a result of the Department’s Dalian Huilong Wooden try Co., Ltd ...... 0.97 intention to release a post-preliminary Products Co., Ltd ...... 0.97 Karly Wood Product Limited 0.97 analysis memorandum, interested Dalian Jiuyuan Wood Indus- Kemian Wood Industry parties may submit written comments try Co., Ltd ...... 0.97 (Kunshan) Co., Ltd ...... 0.97 (case briefs) on the preliminary results Dalian Kemian Wood Indus- Linyi Anying Wood Co., Ltd .. 0.97 and the post-preliminary analysis try Co., Ltd ...... 0.97 Linyi Bonn Flooring Manufac- Dalian Penghong Floor Prod- turing Co., Ltd ...... 0.97 memorandum no later than one week ucts Co., Ltd ...... 0.97 Mudanjiang Bosen Wood In- after the issuance of the post- Dalian T-Boom Wood Prod- dustry Co., Ltd ...... 0.97 preliminary analysis memorandum, and ucts Co., Ltd ...... 0.97 Nakahiro Jyou Sei Furniture rebuttal comments (rebuttal briefs) Dongtai Fuan Universal Dy- (Dalian) Co., Ltd ...... 0.97 within five days after the time limit for namics, LLC ...... 0.97 Nanjing Minglin Wooden In- filing case briefs.7 Pursuant to 19 CFR Dun Hua City Jisen Wood In- dustry Co., Ltd ...... 0.97 351.309(d)(2), rebuttal briefs must be dustry Co., Ltd ...... 0.97 Power Dekor Group Co., Ltd 0.97 limited to issues raised in the case Dunhua City Dexin Wood In- Riverside Plywood Corpora- briefs. Parties who submit arguments are dustry Co., Ltd ...... 0.97 tion ...... 0.97 requested to submit with the argument: Dunhua City Hongyuan Samling Elegant Living Trad- Wood Industry Co., Ltd ..... 0.97 ing (Labuan) Limited ...... 0.97 (1) A statement of the issue; (2) a brief Dunhua City Wanrong Wood Samling Riverside Co., Ltd ... 0.97 summary of the argument; and (3) a Industry Co., Ltd ...... 0.97 Shanghai Anxin (Weiguang) table of authorities. Dunhua Sentai Wood Co., Timber Co., Ltd ...... 0.97 Interested parties who wish to request Ltd ...... 0.97 Shanghai Eswell Timber Co., a hearing, or to participate if one is Dunhua Shengda Wood In- Ltd ...... 0.97 requested, must submit a written dustry Co., Ltd ...... 0.97 Shanghai Lairunde Wood request to the Assistant Secretary for Fu Lik Timber (HK) Co., Ltd 0.97 Co., Ltd ...... 0.97 Enforcement and Compliance, U.S. Fusong Jinlong Wooden Shanghai New Sihe Wood Department of Commerce within 30 Group Co., Ltd ...... 0.97 Co., Ltd ...... 0.97 Fusong Qianqiu Wooden days after the date of publication of this Shanghai Shenlin Corpora- 8 Product Co., Ltd ...... 0.97 tion ...... 0.97 notice. Requests should contain the GTP International Ltd ...... 0.97 Shenyang Haobainian Wood- party’s name, address, and telephone Guangdong Yihua Timber In- en Co., Ltd ...... 0.97 number, the number of participants, and dustry Co., Ltd ...... 0.97 Shenzhenshi Huanwei a list of the issues to be discussed. If the Guangzhou Homebon Tim- Woods Co., Ltd ...... 0.97 Department receives a request for a ber Manufacturing Co., Ltd 0.97 Vicwood Industry (Suzhou) hearing, we will inform parties of the Guangzhou Panyu Kangda Co. Ltd ...... 0.97 scheduled date for the hearing which Board Co., Ltd ...... 0.97 Xiamen Yung De Ornament will be held at the U.S. Department of Guangzhou Panyu Southern Co., Ltd ...... 0.97 Commerce, 14th Street and Constitution Star Co., Ltd ...... 0.97 Xuzhou Shenghe Wood Co., HaiLin XinCheng Wooden Avenue NW, Washington, DC 20230, at Ltd ...... 0.97 9 Products, Ltd ...... 0.97 Yekalon Industry, Inc ...... 0.97 a time and location to be determined. Hangzhou Dazhuang Floor Yingyi-Nature (Kunshan) Parties should confirm by telephone the Co., Ltd (dba Dasso Indus- Wood Industry Co., Ltd ..... 0.97 date, time, and location of the hearing. trial Group Co., Ltd) ...... 0.97 Yixing Lion-King Timber In- Parties are reminded that briefs and Hangzhou Hanje Tec Co., dustry ...... 0.97 hearing requests are to be filed Ltd ...... 0.97 Zhejiang Anji Xinfeng Bam- electronically using ACCESS and that Hangzhou Zhengtian Indus- boo and Wood Co., Ltd .... 0.97 electronically filed documents must be trial Co., Ltd ...... 0.97 Zhejiang Biyork Wood Co., received successfully in their entirety by Hunchun Forest Wolf Wood- Ltd ...... 0.97 en Industry Co., Ltd ...... 0.97 5 p.m. Eastern Time on the due date. Zhejiang Dadongwu Green Unless the deadline is extended Hunchun Xingjia Wooden Home Wood Co., Ltd ...... 0.97 Flooring Inc ...... 0.97 Zhejiang Desheng Wood In- pursuant to section 751(a)(3)(A) of the Huzhou Chenghang Wood dustry Co., Ltd ...... 0.97 Act, we intend to issue the final results Co., Ltd ...... 0.97 Zhejiang Fudeli Timber In- of this administrative review, including Huzhou Fulinmen Imp. & dustry Co., Ltd ...... 0.97 the results of our analysis of the issues Exp. Co., Ltd ...... 0.97 Zhejiang Fuerjia Wooden raised by the parties in their comments, Huzhou Fuma Wood Co., Ltd 0.97 Co., Ltd ...... 0.97 within 120 days after publication of Huzhou Jesonwood Co., Ltd 0.97 Zhejiang Fuma Warm Tech- these preliminary results. Huzhou Ruifeng Imp. & Exp. nology Co., Ltd ...... 0.97 Co., Ltd ...... 0.97 Zhejiang Haoyun Wooden Assessment Rates Huzhou Sunergy World Co., Ltd ...... 0.97 Trade Co., Ltd ...... 0.97 Consistent with section 751(a)(1) of Zhejiang Longsen Lumbering the Act, upon issuance of the final Jiafeng Wood (Suzhou) Co., Co., Ltd ...... 0.97 Ltd ...... 0.97 Zhejiang Shiyou Timber Co., results, the Department shall determine, Jiangsu Senmao Bamboo Ltd ...... 0.97 and Wood Industry Co., Zhejiang Tianzhen Bamboo 6 See 19 CFR 351.224(b). Ltd ...... 0.97 & Wood Development Co., 7 See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1). Jiangsu Simba Flooring Co., Ltd ...... 0.97 8 See 19 CFR 351.310(c). Ltd ...... 0.97 9 See 19 CFR 351.310.

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and U.S. Customs and Border Protection the review, because the single Methodology (CBP) shall assess, countervailing duties mandatory respondent, Kunshan on all appropriate entries covered by Xinlong Food Co., Ltd. (‘‘Kunshan The Department conducted this this review. We intend to issue Xinlong’’), did not cooperate, the review in accordance with section instructions to CBP 15 days after Department preliminarily determines to 751(a)(2) of the Tariff Act of 1930, as publication of the final results of this treat this company as part of the PRC- amended (‘‘the Act’’). In making our review. wide entity. If these preliminary results findings, we have relied on facts are adopted in the final results of available, and because the single Cash Deposit Requirements review, the Department will instruct mandatory respondent, Kunshan Also in accordance with section U.S. Customs and Border Protection Xinlong, which we preliminarily are 751(a)(1) of the Act, the Department (‘‘CBP’’) to assess antidumping duties treating as part of the PRC-wide entity, intends to instruct CBP to collect cash on entries of subject merchandise did not act to the best of its ability to deposits of estimated countervailing during the POR. respond to the Department’s requests for duties in the amounts shown above for DATES: Effective Date: January 7, 2015. information, we have drawn an adverse each of the respective companies listed FOR FURTHER INFORMATION CONTACT: inference in selecting from among the above. For all non-reviewed firms, we Irene Gorelik, AD/CVD Operations, facts otherwise available.6 will instruct CBP to continue to collect Office V, Enforcement and Compliance, For a full description of the cash deposits at the most recent International Trade Administration, methodology underlying our company specific or all-others rate Department of Commerce, 14th Street applicable to the company. These cash and Constitution Avenue NW., conclusions, see the Preliminary deposit requirements, when imposed, Washington, DC 20230; telephone: (202) Decision Memorandum, dated shall remain in effect until further 482–6905. concurrently with these results and notice. SUPPLEMENTARY INFORMATION: hereby adopted by this notice. The This administrative review and notice Preliminary Decision Memorandum is a are in accordance with sections Background public document and is on file 751(a)(1) and 777(i) of the Act and 19 On February 3, 2014, the Department electronically via Enforcement and CFR 351.213. initiated an administrative review of the Compliance’s Antidumping and Dated: December 30, 2014. antidumping duty Order 1 on honey Countervailing Duty Centralized 2 7 Paul Piquado, from the PRC. On February 28, 2014, Electronic Service System (‘‘ACCESS’’). 3 Assistant Secretary for Enforcement and Petitioners withdrew their request for ACCESS is available to registered users Compliance. an administrative review for all at http://access.trade.gov and to all companies under review except parties in the Central Records Unit Appendix—List of Topics Discussed in Kunshan Xinlong.4 (‘‘CRU’’), Room 7046 of the main the Preliminary Decision Department of Commerce building. In Memorandum: Scope of the Order addition, parties can obtain a complete The products covered by the Order 1. Summary version of the Preliminary Decision are natural honey, artificial honey 2. Background Memorandum on the Internet at http:// containing more than 50 percent natural 3. Scope of the Order trade.gov/enforcement/frn/index.html. 4. Intent to Partially Rescind Administrative honey by weight, preparations of natural Review honey containing more than 50 percent The signed Preliminary Decision 5. Subsidies Valuation Information natural honey by weight and flavored Memorandum and the electronic 6. Analysis of Programs honey. versions of the Preliminary Decision 7. Recommendation The merchandise subject to the order Memorandum are identical in content. [FR Doc. 2015–00037 Filed 1–6–15; 8:45 am] is currently classifiable under Preliminary Results of Review BILLING CODE 3510–DS–P subheadings 0409.00.00, 1702.90.90, 2106.90.99, 0409.00.0010, 0409.00.0035, We preliminarily determine that the 0409.00.0005, 0409.00.0045, following antidumping duty margin DEPARTMENT OF COMMERCE 0409.00.0056, and 0409.00.0065 of the exists: Harmonized Tariff Schedule of the International Trade Administration United States (‘‘HTSUS’’). Although the [A–570–863] HTSUS subheadings are provided for convenience and customs purposes, the Honey From the People’s Republic of Preliminary Results of the 2012–2013 Department’s written description of the Administrative Review: Honey from the People’s China: Preliminary Results of merchandise under the order is Republic of China,’’ from Christian Marsh, Deputy Antidumping Duty Administrative dispositive.5 Assistant Secretary for Antidumping and Review; 2012–2013 Countervailing Duty Operations, to Paul Piquado, 1 See Notice Of Antidumping Duty Order and Assistant Secretary for Import Administration, AGENCY: Enforcement and Compliance, Amendment to Final Determination: Honey from (‘‘Preliminary Decision Memorandum’’), dated International Trade Administration, the People’s Republic of China, 66 FR 59026 concurrently with this notice. Department of Commerce. (December 10, 2001) (‘‘Order’’). 6 See sections 776(a) and (b) of the Act. 2 See Initiation of Antidumping and SUMMARY: In response to requests from 7 On November 24, 2014, Enforcement and Countervailing Duty Administrative Reviews and interested parties, the Department of Request for Revocation in Part, 79 FR 6147 Compliance changed the name of Enforcement and Commerce (‘‘Department’’) is (February 3, 2014) (‘‘Initiation’’). Compliance’s AD and CVD Centralized Electronic conducting an administrative review of 3 Petitioners are: American Honey Producers Service System (‘‘IA ACCESS’’) to AD and CVD the antidumping duty order on honey Association and Sioux Honey Association. Centralized Electronic Service System (‘‘ACCESS’’). 4 The Web site location was changed from http:// from the People’s Republic of China See Letter from Petitioners re: ‘‘Petitioners’ Partial Withdrawal of Request for 12th iaaccess.trade.gov to http://access.trade.gov. The (‘‘PRC’’). The period of review (‘‘POR’’) Administrative Review,’’ dated February 28, 2014. Final Rule changing the references to the is December 1, 2012, through November 5 For the complete description of the scope of the Regulations can be found at 79 FR 69046 30, 2013. As discussed below, during Order, see ‘‘Decision Memorandum for the (November 20, 2014).

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Margin review, including the results of our 777(i)(1) of the Act and 19 CFR Manufacturer/exporter (dollars per analysis of issues raised in the written 351.221(b)(4). kilogram) comments, within 120 days of Dated: December 29, 2014. publication of these preliminary results PRC-wide entity (including Paul Piquado, in the Federal Register. Kunshan Xinlong Food Assistant Secretary for Enforcement and Co., Ltd.) ...... 2.63 Assessment Rates Compliance. List of Topics Discussed in the Disclosure and Public Comment Upon issuance of the final results, the Department will determine, and CBP Preliminary Decision Memorandum Normally, the Department discloses to shall assess, antidumping duties on all I. Summary interested parties the calculations appropriate entries covered by this II. Background performed in connection with a review. The Department intends to issue 1. Initiation preliminary results within five days of assessment instructions to CBP 15 days 2. Period of Review the date of publication of the notice of after the publication date of the final 3. Scope of the Order preliminary results in the Federal results of this review. III. Discussion of the Methodology Register, in accordance with 19 CFR 1. Non-Market Economy Country 351.224(b). However, because the Cash Deposit Requirements 2. Separate Rates Department preliminarily applied 3. Withdrawal of Requests for Review The following cash deposit 4. Use of Facts Available and AFA adverse facts available to the PRC-wide requirements will be effective upon A. Background and Basis for Use of Facts entity, including Kunshan Xinlong, publication of the final results of this Available pursuant to section 776 of the Act, there administrative review for all shipments B. Application of Facts Available and are no calculations to disclose, the of the subject merchandise entered, or Selection Based Upon Adverse determination for which is fully withdrawn from warehouse, for Inferences for the PRC-Wide Entity discussed in the Preliminary Decision 5. Corroboration of AFA Rate consumption on or after the publication IV. Conclusion Memorandum. date, as provided for by section Interested parties are invited to 751(a)(2)(C) of the Act: (1) For the [FR Doc. 2014–30852 Filed 1–6–15; 8:45 am] comment on the preliminary results and exporters listed above, the cash deposit BILLING CODE 3510–DS–P may submit case briefs and/or written rate will be the rate established in the comments no later than 30 days after the final results of this review (except, if the DEPARTMENT OF COMMERCE date of publication of these preliminary rate is zero or de minimis, i.e., less than results.8 A table of contents, list of 0.5 percent, no cash deposit rate will be International Trade Administration authorities used, and an executive required for that company); (2) for summary of issues should accompany [A–489–805] 9 previously investigated or reviewed PRC any briefs submitted to the Department. and non-PRC exporters not listed above Rebuttal briefs, limited to issues raised Certain Pasta From Turkey: that have separate rates, the cash Preliminary Results of Antidumping in the case briefs, will be due five days deposit rate will continue to be the 10 Duty New Shipper Review; 2013–2014 later. exporter-specific rate published for the Interested parties who wish to request most recently completed period; (3) for AGENCY: Enforcement and Compliance, a hearing, or to participate if one is all PRC exporters of subject International Trade Administration, requested, must submit a written merchandise that have not been found Department of Commerce. request to the Assistant Secretary for to be entitled to a separate rate, the cash SUMMARY: In response to a request from Enforcement and Compliance, U.S. deposit rate will be the PRC-wide rate respondent Bes¸san Makarna Gida San. Department of Commerce, filed of $2.63 per kilogram; and, (4) for all Ve Tic. A.S. (Bes¸san), the Department of electronically in ACCESS. An non-PRC exporters of subject Commerce (the Department) is electronically filed document must be merchandise which have not received conducting a new shipper review of the received successfully in its entirety in their own rate, the cash deposit rate will antidumping duty order on certain pasta ACCESS, by 5:00 p.m. Eastern Standard be the rate applicable to the PRC (pasta) from Turkey. The period of Time, within 30 days after the date of exporter(s) that supplied that non-PRC review (POR) is July 1, 2013, through publication of this notice.11 Hearing exporter. These deposit requirements, January 31, 2014. We preliminarily find requests should contain the party’s when imposed, shall remain in effect that Bes¸san did not sell subject name, address, and telephone number, until further notice. merchandise at prices below normal the number of participants, and a list of value (NV) during the POR. If these the issues you intend to present at the Notification to Importers preliminary results are adopted in our hearing. If a request for a hearing is This notice also serves as a final results of this review, we will made, the Department intends to hold preliminary reminder to importers of instruct U.S. Customs and Border the hearing at the U.S. Department of their responsibility under 19 CFR Protection (CBP) to liquidate entries of Commerce, 14th Street and Constitution 351.402(f)(2) to file a certificate merchandise produced by Bes¸san Avenue NW., Washington, DC 20230, at regarding the reimbursement of without regard to antidumping duties. a time and location to be determined. antidumping duties prior to liquidation We invite interested parties to comment Parties should confirm by telephone the of the relevant entries during this on these preliminary results. date, time, and location of the hearing review period. Failure to comply with DATES: Effective Date: January 7, 2015. two days before the scheduled date. The Department intends to issue the this requirement could result in the FOR FURTHER INFORMATION CONTACT: final results of this administrative Secretary’s presumption that Tyler Weinhold or Robert James, reimbursement of antidumping duties AD/CVD Operations, Office VII, occurred and the subsequent assessment 8 See 19 CFR 351.309(c)(1)(ii). Enforcement and Compliance, 9 See 19 CFR 351.309(c)(2). of double antidumping duties. International Trade Administration, 10 See 19 CFR 351.309(d). This notice is published in U.S. Department of Commerce, 14th 11 See 19 CFR 351.310(c). accordance with sections 751(a)(1) and Street and Constitution Avenue NW.,

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Washington, DC 20230; telephone: (202) http://www.trade.gov/enforcement/. The Constitution Avenue NW., Washington, 482–1121 or (202) 482–0649, signed Preliminary Decision DC 20230. respectively. Memorandum and the electronic The Department intends to issue the SUPPLEMENTARY INFORMATION: versions of the Preliminary Decision final results of this administrative Memorandum are identical in content. review, including the results of its Scope of the Order analysis of the issues raised in any Preliminary Results of the Review Imports covered by this review are written briefs, within 90 days after the shipments of certain non-egg dry pasta As a result of this review, we date of publication of this notice, in packages of five pounds (2.27 preliminarily determine the following pursuant to section 751(a)(2)(B)(iv) of kilograms) or less, whether or not dumping margin for the period July 1, the Act. enriched or fortified or containing milk 2013, through January 31, 2014. Assessment Rates or other optional ingredients such as Upon completion of this new shipper chopped vegetables, vegetable purees, Exporter/manufacturer Margin milk, gluten, diastases, vitamins, (percent) review, the Department shall determine coloring and flavorings, and up to two and U.S. Customs and Border Protection percent egg white. Bes¸san Makarna Gida San. (CBP) shall assess antidumping duties Ve Tic. A.S...... 0.00 For a full description of the scope of on all appropriate entries. If Bes¸san’s the order, see the memorandum from weighted-average dumping margin is Christian Marsh, Deputy Assistant Disclosure and Public Comment not zero or de minimis in the final results of this review, we will calculate Secretary for Antidumping and The Department intends to disclose to Countervailing Duty Operations, to Paul importer-specific assessment rates on interested parties the calculations the basis of the ratio of the total amount Piquado, Assistant Secretary for performed in connection with these Enforcement and Compliance, of antidumping duties calculated for an preliminary results within five days of importer’s examined sales and the total ‘‘Decision Memorandum for Preliminary 3 the date of publication of this notice. entered value of such sales in Results of Antidumping Duty Pursuant to 19 CFR 351.309(c), Administrative Review: Pasta From accordance with 19 CFR 351.212(b)(1). interested parties may submit cases If Bes¸san’s weighted-average dumping Turkey’’ (Preliminary Decision briefs no later than 30 days after the Memorandum), which is dated margin is zero or de minimis in the final date of publication of this notice. results of review, or an importer-specific concurrently with this notice, and is Rebuttal briefs, limited to issues raised hereby incorporated by reference.1 rate is zero or de minimis, we will in the case briefs, may be filed no later instruct CBP to liquidate the appropriate Methodology than five days after the date for filing entries without regard to dumping 4 The Department has conducted this case briefs. Parties who submit case margins. review in accordance with section briefs or rebuttal briefs in this We intend to issue instructions to 751(a)(2)(B) of the Tariff Act of 1930, as proceeding are encouraged to submit CBP 15 days after publication of the amended (the Act) and 19 CFR 351.214. with each argument: (1) a statement of final results of this review. Export price is calculated in accordance the issue; (2) a brief summary of the 5 Cash Deposit Requirements with section 772 of the Act. NV is argument; and (3) a table of authorities. calculated in accordance with section Case and rebuttal briefs should be filed The following deposit requirements 6 773 of the Act. For a full description of using ACCESS. will be effective upon publication of the the methodology underlying our Pursuant to 19 CFR 351.310(c), notice of final results of new shipper conclusions, see the Preliminary interested parties who wish to request a review for all shipments of pasta from Decision Memorandum. The hearing, or to participate if one is Turkey entered, or withdrawn from Preliminary Decision Memorandum is a requested, must submit a written warehouse, for consumption on or after public document and is on file request to the Assistant Secretary for the date of publication as provided by electronically via Enforcement and Enforcement and Compliance, filed section 751(a)(2)(C) of the Act: (1) The Compliance’s Antidumping and electronically via ACCESS. An cash deposit rate for Bes¸san will be the Countervailing Duty Centralized electronically filed document must be rate established in the final results of Electronic Service System (ACCESS).2 received successfully in its entirety by this new shipper review except if the ACCESS is available to registered users the Departments electronic records rate is de minimis within the meaning at https://access.trade.gov and is system, ACCESS, by 5:00 p.m. Eastern of 19 CFR 351.106(c)(1), in which case available to all parties in the Central Standard Time within 30 days after the the cash deposit rate will be zero; (2) for Records Unit, Room 7046 of the main date of publication of this notice.7 merchandise exported by manufacturers Department of Commerce building. In Requests should contain: (1) The party’s or exporters not covered in this review addition, a complete version of the name, address, and telephone number; but covered in a prior segment of the Preliminary Decision Memorandum can (2) the number of participants; and (3) proceeding, the cash deposit rate will be accessed directly on the Internet at a list of issues to be discussed. Issues continue to be the company-specific rate raised in the hearing will be limited to published for the most recent period in 1 A list of the topics discussed in the Preliminary those raised in the respective case which the manufacturer or exporter Decision Memorandum appears in Appendix I of briefs. If a request for a hearing is made, participated; (3) if the exporter is not a this notice. parties will be notified of the date and firm covered in this review, a prior 2 On November 24, 2014, Enforcement and review, or the original less-than-fair- Compliance changed the name of Enforcement and time for the hearing to be held at the Compliance’s AD and CVD Centralized Electronic U.S. Department of Commerce, 1401 value investigation but the manufacturer Service System (‘‘IA ACCESS’’) to AD and CVD is, the cash deposit rate will be the rate Centralized Electronic Service System (‘‘ACCESS’’). 3 See 19 CFR 351.224(b). established for the most recent period The Web site location was changed from http:// 4 for the manufacturer of the iaaccess.trade.gov to http://access.trade.gov. The See 19 CFR 351.309(d). Final Rule changing the references to the 5 See 19 CFR 351.309(c)(2) and (d)(2). merchandise; (4) the cash deposit rate Regulations can be found at 79 FR 69046 6 See 19 CFR 351.303(b). for all other manufacturers or exporters (November 20, 2014). 7 See 19 CFR 351.310(c). will continue to be 51.49 percent, the

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all-others rate established in the less- January 21, 2015. This notice contains possible adoption at the NCWM 2015 than-fair-value investigation.8 These information about significant items on Annual Meeting. The Committees may cash deposit requirements, when the NCWM Committee agendas, but withdraw or carryover items that need imposed, shall remain in effect until does not include all agenda items. As a additional development. The 100th further notice. result, the items are not consecutively Annual Meeting of the NCWM will be numbered. held July 19 to 23, 2015, at The Notification to Importers DATES: The meeting will be held from Sheraton Philadelphia Society Hill This notice also serves as a Sunday, January 18, 2015 through Hotel, 1 Dock Street, Philadelphia, preliminary reminder to importers of Wednesday, January 21, 2015, meeting Pennsylvania 19106. their responsibility under 19 CFR schedule is available at www.ncwm.net. Some of the items listed below 351.402(f)(2) to file a certificate ADDRESSES: provide notice of projects under regarding the reimbursement of This meeting will be held at the Hilton Daytona Beach Oceanfront development by groups working to antidumping duties prior to liquidation Resort 100 North Atlantic Avenue, develop specifications, tolerances, and of the relevant entries during this Daytona Beach, Florida 32118. other requirements for devices used in review period. Failure to comply with the retail sales of engine fuels and the this requirement could result in the FOR FURTHER INFORMATION CONTACT: Ms. Carol Hockert, Chief, NIST, Office of establishment of approximate gallon Department’s presumption that and liter equivalents to diesel fuel that reimbursement of antidumping duties Weights and Measures, 100 Bureau Drive, Stop 2600, Gaithersburg, MD would be used in marketing both occurred and the subsequent assessment compressed and liquefied natural gas. of double antidumping duties. 20899–2600. You may also contact Ms. Hockert at (301) 975–5507 or by email These notices are intended to make We are issuing and publishing these interested parties aware of these results in accordance with sections at [email protected]. The meeting is open to the public, but a paid development projects and to make them 751(a)(1) and 777(i)(1) of the Act and 19 aware that reports on the status of the CFR 351.214. registration is required. Please see NCWM Publication 15 ‘‘Interim Meeting project will be given at the Interim Dated: December 24, 2014. Agenda’’ (www.ncwm.net) to view the Meeting. The notices are also presented Paul Piquado, meeting agendas, registration forms, and to invite the participation of Assistant Secretary for Enforcement and hotel reservation information. manufacturers, experts, consumers, users, and others who may be interested Compliance. SUPPLEMENTARY INFORMATION: in these efforts. Appendix I Publication of this notice on the NCWM’s behalf is undertaken as a The Specifications and Tolerances List of Topics Discussed in the Preliminary public service; NIST does not endorse, Committee (S&T Committee) will Decision Memorandum approve, or recommend any of the consider proposed amendments to NIST Summary proposals or other information Handbook 44, ‘‘Specifications, Background contained in this notice or in the Tolerances, and other Technical Scope of the Order publications of the NCWM. Requirements for Weighing and Methodology Measuring Devices.’’ Those items Bona Fide Sales Analysis The NCWM is an organization of weights and measures officials of the address weighing and measuring Fair Value Comparisons devices used in commercial Product Comparisons states, counties, and cities of the United Determination of Comparison Method States, federal agencies, and applications, that is, devices that are Date of Sale representatives from the private sector. used to buy from or sell to the public U.S. Price These meetings bring together or used for determining the quantity of Normal Value government officials and representatives products or services sold among Currency Conversion of business, industry, trade associations, businesses. Issues on the agenda of the Conclusion and consumer organizations on subjects NCWM Laws and Regulations [FR Doc. 2014–30848 Filed 1–6–15; 8:45 am] related to the field of weights and Committee (L&R Committee) relate to BILLING CODE 3510–DS–P measures technology, administration, proposals to amend NIST Handbook and enforcement. NIST participates to 130, ‘‘Uniform Laws and Regulations in encourage cooperation between federal the area of Legal Metrology and Engine DEPARTMENT OF COMMERCE agencies and the states in the Fuel Quality’’ and NIST Handbook 133, development of legal metrology ‘‘Checking the Net Contents of Packaged National Institute of Standards and Goods.’’ Technology requirements. NIST also promotes uniformity among the states in laws, NCWM Specifications and Tolerances National Conference on Weights and regulations, methods, and testing Committee Measures 100th Interim Meeting equipment that comprise the regulatory control of commercial weighing and The following items are proposals to AGENCY: National Institute of Standards measuring devices, packaged goods, and amend NIST Handbook 44: and Technology, Commerce. other trade and commerce issues. Scales (including weigh-in-motion ACTION: Notice. The following are brief descriptions of vehicle scales for use in the enforcement some of the significant agenda items of highway load limits) SUMMARY: The 100th Interim Meeting of that will be considered at the NCWM the National Conference on Weights and Interim Meeting. Comments will be Item 320–4 Weigh-in-Motion Vehicle Measures (NCWM) will be held in taken on these and other issues during Scales for Use in Highway Weight Daytona Beach, Florida, from Sunday, several public comment sessions. At Enforcement January 18, 2015 through Wednesday, this stage, the items are proposals. This The S&T Committee will consider meeting also includes work sessions in recommending adoption of a new code 8 See Notice of Antidumping Duty Order and Amended Final Determination of Sales at Less which the Committees may also accept to be included in NIST Handbook 44 Than Fair Value: Certain Pasta From Turkey, 61 FR comments, and where recommendations that will include the specifications, 38545 (July 24, 1996). will be developed for consideration and tolerances, and other technical

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requirements for the vehicle scales used manufacturers to supply required ‘‘master meters’’ in both service-related by highway weight enforcement security and configuration related data and official testing. The S&T Committee agencies to determine the axle weights in ‘‘event loggers’’ (i.e., digital systems will also consider expanding the use of and gross weights of trucks and other that keep track of the number of times transfer standards to other types of large highway vehicles while they are in a calibration event occurs) to weights measuring devices, including those used motion. The proposed code includes and measures officials and service to measure petroleum at terminals and recommended tests and tolerances for personnel utilizing digital retail outlets and to meters used to static and dynamic weighing modes as communications (e.g., cellular or deliver home heating fuel and other well as user requirements that will Internet connections) or other electronic products. ensure devices are maintained properly, means (e.g., USB flash memory drive) in Mass Flow Meters allowing weighing results to be used to lieu of providing a printed record. This carry out highway weight enforcement information is used to ascertain how Item 337–1 Diesel Energy Equivalents programs across the nation. many and what type of calibrations and for Compressed and Liquefied Natural configuration changes were made to a Gas Belt-Conveyor Scale Systems weighing and measuring device since Natural gas is sold in the marketplace Item 321–1 Belt-Conveyor Scale the last official inspection or service. in both compressed (CNG) and liquefied Systems The S&T Committee will evaluate the (LNG) states as alternative fuel choices Belt-conveyor scales are used in a costs, practicality, and other aspects of to gasoline and diesel fuel. The S&T wide variety of applications for the proposal in addition to considering Committee will consider proposed weighing coal, grain, ore, and many the data security and privacy concerns revisions to NIST Handbook 44 to other raw materials or products. that may arise if this proposal is define volume units for CNG and LNG Currently, only scales that are fully adopted. in terms of the energy equivalents for a integrated into a conveyor system are Item 330–3 N.4.1.3. Normal Tests on liter or gallon of diesel fuel. The permitted under NIST Handbook 44. Wholesale Multi-Point Calibration availability of these values should The S&T Committee will consider Devices enable consumers to compare the cost and mileage economy of different fuels adoption of new definitions and The S&T Committee will consider a proposals to broaden the scope of the so enable informed purchasing proposal to update the Liquid- decisions when considering the use, requirements to allow fully ‘‘self- Measuring Devices Code to include test contained weigh-belt systems’’ to be purchase, or lease of vehicles equipped procedures that recognize technological to operate on different fuels. covered by the specifications, advances in meter calibration and tolerances, and other technical improve the accuracy of meters used to Taximeters (and GPS Devices When requirements in NIST Handbook 44 so measure petroleum, chemicals, and Used in Transportation Services) these devices may be utilized in other liquids. The intent of the proposal commercial transactions. Items 354–1, 354–2, 354–3, 354–4, and is to prescribe test procedures for meters 354–5 Automatic Bulk Weighing Systems with multi-point calibration (i.e., their The S&T Committee will consider this measurement accuracy is adjusted to Item 322–1 N.1. Testing Procedures group of proposals (listed above) which account for variations in volume, which includes proposed revisions and The S&T Committee will consider a result from the meter being operated at updates to the Taximeter Code in NIST proposal to change the test procedures different flow rates). The S&T Handbook 44 to address changes in and tolerances for automatic bulk Committee will also consider technology related to indicating and weighing systems to reflect that these requirements that will govern how users recording elements (i.e., printers) and devices are generally operating in a utilize the optional features found on operational features including the ‘‘dynamic’’ mode when commercial these systems. See also Item 331–1 indications required to be presented to weight determinations are made. When which addresses these features on passengers. these devices weigh in a ‘‘dynamic’’ vehicle-tank meters used to measure mode, the accuracy of the weighment products such as home heating fuel and Item 354–6 U.S. National Working can be affected by many additional other fuel deliveries. Group on Taximeters and Global factors (e.g., vibration, mechanical Positioning System-Based Systems for Liquefied Petroleum Gas and timing of the systems’ filling and Time and Distance Measurement Anhydrous Ammonia Liquid- emptying mechanisms); this may result Measuring Devices The S&T Committee will consider a in differences when compared to the progress report from a national working weight determinations obtained in Item 332–2 N.3. Test Drafts—Use of group that is studying the use of Global ‘‘static’’ weighing mode. The proposed Transfer Standards for Calibration and Positioning Systems and smart phone/ procedures require ‘‘as used’’ testing to Verification web based applications in verify the accuracy of these devices. The S&T Committee will consider a transportations services in order to Requiring ‘‘as used’’ testing would proposal to recognize the use of develop proposed specifications, improve the weighing accuracy of these calibrated transfer standards (also called tolerances, and other technical devices and bring this code into ‘‘master meters’’) in the verification and requirements to ensure accuracy and agreement with requirements in other calibration of Liquefied Petroleum Gas transparency for passengers, drivers, NIST Handbook 44 codes where and Anhydrous Ammonia Liquid- and businesses for inclusion in NIST dynamic weighing is allowed. Measuring Devices. Currently, most Handbook 44. Liquid Measuring Devices official tests of these devices are Other Items conducted using volumetric test Item 330–2 S.2.2. Categories of Device measures or using gravimetric testing. Item 360–1 Proposed Definition for a and Methods of Sealing Adoption of this proposal, which ‘‘Batching System’’ The S&T Committee will consider a includes requirements for a minimum The S&T Committee will consider a proposal that would allow device test draft, would allow the use of proposed definition for ‘‘batching

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systems.’’ These systems are used daily NIST Handbook 130—Section on DEPARTMENT OF DEFENSE in a wide variety of industries to Uniform Regulation for the Method of produce concrete (sold by the cubic Sale of Commodities Department of the Army yard) used in buildings, bridge and Item 232–3 Animal Bedding [Docket ID: USA–2015–0003] highway construction, and ‘‘blacktop’’ or asphalt pavement (sold by the short Animal Bedding is generally defined Proposed Collection; Comment ton) used for road surfaces. Batching as any material, except for baled straw, Request systems are also used in the production that is kept, offered or exposed for sale AGENCY: Army & Air Force Exchange of animal food, agricultural seed and or sold to retail consumers for primary Service (Exchange), DoD. many other commodities. These systems use as a medium for any pet or ACTION: Notice. (which can operate automatically or companion or livestock animal to nest manually) often include multiple or eliminate waste. The purpose of this SUMMARY: In compliance with the components such as weighing and proposal is to provide a uniform method Paperwork Reduction Act of 1995, the measuring devices, which fall under of sale for animal bedding that will Army & Air Force Exchange Service different codes in NIST Handbook 44. enhance the ability of consumers to announces a proposed public When these multiple-component make value comparisons and will information collection and seeks public systems are used, it is sometimes ensure fair competition. If adopted, the comment on the provisions thereof. difficult to categorize the system as a proposal will require packers to Comments are invited on: (a) Whether whole as a scale, a measuring device, or advertise and sell packages of animal the proposed collection of information an automatic weighing system. bedding on the basis of the expanded is necessary for the proper performance Confusion over what requirements to volume of the bedding. Most packages of the functions of the agency, including apply from the various codes sometimes of animal bedding are compressed whether the information shall have practical utility; (b) the accuracy of the occurs. The definition is intended to during packaging and the expanded agency’s estimate of the burden of the clarify that weights and measures volume is the amount of product that proposed information collection; (c) officials and users may apply different consumers will recover through ways to enhance the quality, utility, and NIST Handbook 44 codes to the unwrapping and decompressing the components of a batching system clarity of the information to be bedding according to the instructions collected; and (d) ways to minimize the without classifying the device as an provided by the packer. See also Item burden of the information collection on ‘‘automatic bulk weighing system’’ 260–3 for proposed Test Procedures for respondents, including through the use because that code includes operational Verifying the Expanded Volume of automated collection techniques or and other requirements that Declaration on Packages of Animal other forms of information technology. manufacturers may not design a system Bedding DATES: Consideration will be given to all to meet. See also Items 320–1—A.1. comments received by March 9, 2015. General; 324–1—A.1. General; and 330– NIST Handbook 133—‘‘Checking the 1—A.1. General. Net Contents of Packaged Goods’’ ADDRESSES: You may submit comments, identified by docket number and title, Item 260–1 Chitterling Test Procedure Item 360–5 Electric Vehicle Fueling by any of the following methods: • and Submetering This proposal will add a test Federal eRulemaking Portal: http:// www.regulations.gov. Follow the The S&T Committee will consider procedure and purge allowance to NIST Handbook 133 so that the drainage instructions for submitting comments. recommending adoption of a draft code • Mail: Federal Docket Management for use in electric vehicle charging and equipment and methods used by state and local weights and measures officials System Office, 4800 Mark Center Drive, submetering for inclusion in NIST East Tower, Suite 02G09, Alexandria, are identical to those used by the Food Handbook 44. The code was developed VA 22350–3100. Safety and Inspection Service of the by a national working group that Instructions: All submissions received continues to further refine the U.S. Department of Agriculture (USDA) must include the agency name, docket specifications, tolerances, and other in packing plants. Currently neither a number and title for this Federal technical requirements to ensure purge allowance nor test procedure are Register document. The general policy accuracy and transparency for drivers of contained in the handbook so state and for comments and other submissions electric vehicles and power resellers. local weights and measures inspectors from members of the public is to make The S&T Committee will also consider use a modified test procedure developed these submissions available for public proposed changes to the section 5.55. for frozen seafood and information viewing on the Internet at http:// ‘‘Timing Devices’’ in NIST Handbook 44 provided in a USDA response to a www.regulations.gov as they are to address requirements for the timing consumer inquiry to carry out received without change, including any mechanisms that are likely to be used in inspections of these food products. This personal identifiers or contact some recharging systems to determine test procedure will also be used in information. Any associated form(s) for additional charges for other services verifying the amount of purge from beef this collection may be located within (e.g., parking). tripe. this same electronic docket and Dated: December 30, 2014. downloaded for review/testing. Follow NCWM Laws and Regulations the instructions at http:// Committee (L & R Committee) Willie E. May, www.regulations.gov for submitting The following items are proposals to Acting Director. comments. Please submit comments on amend NIST Handbook 130 or NIST [FR Doc. 2015–00020 Filed 1–6–15; 8:45 am] any given form identified by docket Handbook 133: BILLING CODE 3510–13–P number, form number, and title. FOR FURTHER INFORMATION CONTACT: To request more information on this proposed information collection or to

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obtain a copy of the proposal and practical utility; (b) the accuracy of the ‘‘Customer Daily Sales Register’’, associated collection instruments, agency’s estimate of the burden of the Exchange Form 6700–001 ‘‘Exchange please write to the Army and Air Force proposed information collection; (c) Service—Repair Log’’, Exchange-Europe Exchange Service, Office of the General ways to enhance the quality, utility, and Form 6650–704 ‘‘Work Order Home Counsel, Compliance Division, Attn: clarity of the information to be Repair Service’’, Exchange Form 6500– Teresa Schreurs, 3911 South Walton collected; and (d) ways to minimize the 093 ‘‘Army & Air Force Exchange Walker Blvd., Dallas, TX 75236–1598 or burden of the information collection on Service Anthony Pizza Order Form’’, call the Exchange Compliance Division respondents, including through the use Exchange Form 4700–037 ‘‘The Cherish at 800–967–6067. of automated collection techniques or Collection Diamond Lifetime Guarantee SUPPLEMENTARY INFORMATION: other forms of information technology. and Trade-up Certificate’’, Exchange Title; Associated Form; and OMB DATES: Consideration will be given to all Form 6200–9 ‘‘Customer Order Form’’, Number: Exchange Application for comments received by March 9, 2015. Exchange Form 4150–082 ‘‘Customer Employment Files; Exchange Form ADDRESSES: You may submit comments, Special Order Repair Parts’’, Exchange 1200–038 ‘‘Employment Reference identified by docket number and title, Form 6800–003 ‘‘Customer Service Request’’; Exchange Form 1200–718 by any of the following methods: Counter Log’’, Exchange Military Star Local National Employment • Federal eRulemaking Portal: http:// Card Application Form; OMB Control Application-Germany Only’’; OMB www.regulations.gov. Follow the Number 0702–XXXX. Control Number: 0702–XXXX. instructions for submitting comments. Needs and Uses: The information Needs and Uses: The information • Mail: Federal Docket Management collection requirement is necessary collection requirement is necessary to System Office, 4800 Mark Center Drive, record customer transactions/payment consider individuals who have applied East Tower, Suite 02G09, Alexandria, for layaway and special orders; to for positions in the Army and Air force VA 22350–3100. determine payment status before Exchange Service by making Instructions: All submissions received finalizing transactions; to identify determinations of qualifications must include the agency name, docket account delinquencies and prepare including medical qualifications, for number and title for this Federal customer reminder notices; to mail positions applied for, and to rate and Register document. The general policy refunds on canceled layaway or special rank applicants applying for the same or for comments and other submissions orders; to process purchase refunds; to similar positions. from members of the public is to make document receipt from customer of Affected Public: Individuals or these submissions available for public merchandise subsequently returned to households. viewing on the Internet at http:// vendors for repair or replacement, Annual Burden Hours: 181,162 Hours. www.regulations.gov as they are shipping/delivery information, and Number of Respondents: 72,648. received without change, including any initiate follow up actions; to monitor Responses per Respondent: 1. personal identifiers or contact individual customer refunds; to perform Average Burden per Response: 15 information. market basket analysis; to improve Minutes. Any associated form(s) for this efficiency of marketing system(s); and to Frequency: On occasion. collection may be located within this help detect and prevent criminal Respondents are Exchange applicants same electronic docket and downloaded activity, and identify potential abuse of for employment. for review/testing. Follow the Exchange privileges. instructions at http:// Affected Public: Authorized patrons Dated: January 2, 2015. www.regulations.gov for submitting of the Exchange. Aaron Siegel, comments. Please submit comments on Annual Burden Hours: 26,667. Number of Respondents: 800,000. Alternate OSD Federal Register Liaison any given form identified by docket Responses Per Respondent: 1. Officer, Department of Defense. number, form number, and title. [FR Doc. 2015–00025 Filed 1–6–15; 8:45 am] Average Burden per Response: 2 FOR FURTHER INFORMATION CONTACT: To minutes. BILLING CODE 5001–06–P request more information on this Frequency: On Occasion. proposed information collection or to Authorized customers of the Army obtain a copy of the proposal and DEPARTMENT OF DEFENSE and Air Force Exchange Service associated collection instruments, information, who provide comments, Department of the Army please write to the Army and Air Force suggestions, complaints, concerns, Exchange Service, Office of the General opinions, observations or other [Docket ID: USA–2015–0002] Counsel, Compliance Division, Attn: information pertaining to Exchange Teresa Schreurs, 3911 South Walton Proposed Collection; Comment operations. The Exchange collects Walker Blvd., Dallas, TX 75236–1598 or Request information electronically transmitted, call the Exchange Compliance Division or provided by customers via paper AGENCY: Army & Air Force Exchange at 800–967–6067. forms completed by the customer or by Service (Exchange), DoD. SUPPLEMENTARY INFORMATION: phone, which allows the Exchange to ACTION: Notice. Title; Associated Form; and OMB contact the customer for special events, Number: Exchange Customer Service; sales, address customer complaints as SUMMARY: In compliance with the Exchange Form 6150–003, Exchange well as provide information about Paperwork Reduction Act of 1995, the Form 6800–023 ‘‘Army and Air Force shopping at the Exchange. The Exchange announces a proposed public Exchange Service (Exchange) information provides valuable data to information collection and seeks public Sweepstakes Acceptance Form’’, the Exchange, which is used to enhance comment on the provisions thereof. Exchange Form 6800–002 ‘‘Official operations and improve efficiencies of Comments are invited on: (a) Whether Entry for Drawing’’, Exchange Form the Exchange marketing program, and to the proposed collection of information 6200–010 ‘‘Customer convenience Order generally enrich the customers’ is necessary for the proper performance Log’’, Exchange Form 6450–032 experience. If the Exchange does not of the functions of the agency, including ‘‘Customer Service Counter Special receive the data, the Exchange efforts to whether the information shall have Order Log’’, Exchange Form 6550–009 improve the shopping experience would

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not be as effective, efficient or useful. Any associated form(s) for this beneficiaries, and contractors who are Customer information is vital to the collection may be located within this actively working with the exchange. efficient and effective maintenance and same electronic docket and downloaded These individuals submit information to improvement of Exchange operations. for review/testing. Follow the the Exchange primarily through Dated: January 2, 2015. instructions at http:// electronic means so the Exchange may Aaron Siegel, www.regulations.gov for submitting pay them appropriately for their time Alternate OSD Federal Register Liaison comments. Please submit comments on and accurately provide them with Officer, Department of Defense. any given form identified by docket benefits and leave. number, form number, and title. [FR Doc. 2015–00015 Filed 1–6–15; 8:45 am] Dated: January 2, 2015. BILLING CODE 5001–06–P FOR FURTHER INFORMATION CONTACT: To Aaron Siegel, request more information on this Alternate OSD Federal Register Liaison proposed information collection or to Officer, Department of Defense. DEPARTMENT OF DEFENSE obtain a copy of the proposal and [FR Doc. 2015–00008 Filed 1–6–15; 8:45 am] associated collection instruments, BILLING CODE 5001–06–P Department of the Army please write to the Army and Air Force [Docket ID: USA–2015–0001] Exchange Service, Office of the General Counsel, Compliance Division, Attn: DEPARTMENT OF DEFENSE Proposed Collection; Comment Teresa Schreurs, 3911 South Walton Request Walker Blvd., Dallas, TX 75236–1598 or Department of the Army call the Exchange Compliance Division [Docket ID: USA–2015–0004] AGENCY: Army & Air Force Exchange at 800–967–6067. Service (Exchange), DoD. SUPPLEMENTARY INFORMATION: Proposed Collection; Comment ACTION: Notice. Title; Associated Form; and OMB Request SUMMARY: In compliance with the Number: Exchange Employee Pay AGENCY: Army & Air Force Exchange Paperwork Reduction Act of 1995, the System Records; Exchange Form 1200– Service (Exchange), DoD. Army & Air Force Exchange Service 021 ‘‘Request for Separate Maintenance announces a proposed public Allowance (SMA)’’, Exchange From ACTION: Notice. information collection and seeks public 1200–006 ‘‘Pre-Employment Screening SUMMARY: In compliance with the comment on the provisions thereof. Applicant Consent Form’’, Exchange Form 1100–016 ‘‘Identification & Paperwork Reduction Act of 1995, the Comments are invited on: (a) Whether Army & Air Force Exchange Service the proposed collection of information Privilege Card Application’’, Exchange- Europe Form 1100–727 ‘‘Eligibility announces a proposed public is necessary for the proper performance information collection and seeks public of the functions of the agency, including Questionnaire for HPP Status and comment on the provisions thereof. whether the information shall have Logistical Support Entitlement’’, Comments are invited on: (a) Whether practical utility; (b) the accuracy of the Exchange-Europe Form 1200–729 the proposed collection of information agency’s estimate of the burden of the ‘‘Personal Data Sheet’’; OMB Control is necessary for the proper performance proposed information collection; (c) Number: 0702–XXXX. of the functions of the agency, including ways to enhance the quality, utility, and Needs and Uses: The information whether the information shall have clarity of the information to be collection requirement is necessary to practical utility; (b) the accuracy of the collected; and (d) ways to minimize the provide a basis for computing civilian agency’s estimate of the burden of the burden of the information collection on pay entitlements and to keep a record of proposed information collection; (c) respondents, including through the use the history of pay transactions. of automated collection techniques or Information collected is necessary to ways to enhance the quality, utility, and other forms of information technology. accurately accrue civilian’s correct clarity of the information to be collected; and (d) ways to minimize the DATES: leave, benefits, retirement and pay, Consideration will be given to all burden of the information collection on comments received by March 9, 2015. issue bonds, pay taxes, and to keep the respondents, including through the use ADDRESSES: You may submit comments, Exchange compliant with court orders such as Qualifying Domestic Relations of automated collection techniques or identified by docket number and title, other forms of information technology. by any of the following methods: Orders which obligate the Exchange to • Federal eRulemaking Portal: http:// pay benefits to ex-spouses or other DATES: Consideration will be given to all www.regulations.gov. Follow the Exchange employee(s) or ex- comments received by March 9, 2015. instructions for submitting comments. employee(s), and the ability to answer ADDRESSES: You may submit comments, • Mail: Federal Docket Management any inquires to process such claims. identified by docket number and title, System Office, 4800 Mark Center Drive, These uses require the collection of the by any of the following methods: East Tower, Suite 02G09, Alexandria, individual’s names, SSN, address, email • Federal eRulemaking Portal: http:// VA 22350–3100. address, telephone numbers and a copy www.regulations.gov. Follow the Instructions: All submissions received of any court orders submitted to the instructions for submitting comments. must include the agency name, docket Exchange. • Mail: Federal Docket Management number and title for this Federal Affected Public: Exchange employee System Office, 4800 Mark Center Drive, Register document. The general policy family members, and former spouses. East Tower, Suite 02G09, Alexandria, for comments and other submissions Annual Burden Hours: 65,000. VA 22350–3100. from members of the public is to make Number of Respondents: 260,000. Instructions: All submissions received these submissions available for public Responses per Respondent: 1.0. must include the agency name, docket viewing on the Internet at http:// Average Burden per Response: 15 number and title for this Federal www.regulations.gov as they are minutes. Register document. The general policy received without change, including any Frequency: On occasion. for comments and other submissions personal identifiers or contact Respondents are Exchange terminated from members of the public is to make information. employees, retired employees, employee these submissions available for public

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viewing on the Internet at http:// Information on dependents including and (g) of the clause to keep informed www.regulations.gov as they are ex-spouses is obtained from the of lost or damaged property for which received without change, including any Exchange personnel. These individuals the Government is liable, and to personal identifiers or contact submit information to the Exchange determine the appropriate course of information. primarily through electronic means. action for replacement or repair of the Any associated form(s) for this Dated: January 2, 2015. property. Contracting officers use the collection may be located within this Aaron Siegel, same electronic docket and downloaded information required by the provision at Alternate OSD Federal Register Liaison DFARS 252.217–7026 to identify the for review/testing. Follow the Officer, Department of Defense. instructions at http:// apparently successful offeror’s sources www.regulations.gov for submitting [FR Doc. 2015–00030 Filed 1–6–15; 8:45 am] of supply so that competition can be comments. Please submit comments on BILLING CODE 5001–06–P enhanced in future acquisitions. This any given form identified by docket collection complies with 10 U.S.C. 2384, Supplies: Identification of number, form number, and title. DEPARTMENT OF DEFENSE FOR FURTHER INFORMATION CONTACT: To Suppliers and Sources, which requires request more information on this Defense Acquisition Regulations the contractor to identify the actual proposed information collection or to System manufacturer or all sources of supply obtain a copy of the proposal and for supplies furnished under contract to [Docket Number DARS 2014–0053] associated collection instruments, DoD. please write to the Army and Air Force Contracting officers use the Submission for OMB Review; information required by the clause at Exchange Service, Office of the General Comment Request Counsel, Compliance Division, Attn: 252.217–7028 to determine the extent of Teresa Schreurs, 3911 South Walton AGENCY: Defense Acquisition ‘‘over and above’’ work before the work Walker Blvd., Dallas, TX 75236–1598 or Regulations System, Department of commences. This requirement allows call the Exchange Compliance Division Defense (DoD). the Government to review the need for at 800–967–6067. ACTION: Notice. pending work before the contractor begins performance. SUPPLEMENTARY INFORMATION: Contracting officers use the Title; Associated Form; and OMB SUMMARY: The Defense Acquisition Regulations System has submitted to information required by DFARS Number: Exchange Official Personnel 217.7004(a) where offerors shall state Folder; Exchange Form 1100–016 OMB for clearance, the following proposal for collection of information prices for the new items being acquired ‘‘Identification & Privilege Card both with and without any exchange Application’’; Exchange Form 1200–038 under the provisions of the Paperwork Reduction Act (44 U.S.C. chapter 35). (trade-in allowance). ‘‘Employment reference Request’’; Contracting officers use the Exchange Form 1200–718 Local DATES: Consideration will be given to all comments received by February 6, 2015. information from 217.7404–3(b), to National Employment Application— evaluate a contractor’s ‘‘qualifying Germany Only’’; Exchange Form 3250– SUPPLEMENTARY INFORMATION: proposal’’ in accordance with the 005 ‘‘Request for Official Personnel Title, Associated Forms and OMB definitization schedule. This subpart Folder’’; and OMB Control Number: Number: Defense Federal Acquisition allows the contracting officer to require 0702–XXXX. Regulation Supplement (DFARS) Part receipt of a qualifying proposal Needs and Uses: The information 217, Special Contracting Methods, and containing sufficient information for collection requirement is necessary to related clauses at 252.217; OMB Control DoD to complete a meaningful analyses provide a repository of the records, Number 0704–0214. and audit of the information in the reports of personnel actions, and the Type of Request: Extension. proposal, and any other information that documents and papers required in Number of Respondents: 5,688. the contracting officer has determined connection with these actions effected Responses per Respondent: DoD needs to review in connection with during an employee’s service with the Approximately 18. the contract. Army and Air Force Exchange Service Annual Responses: 102,139. Contracting officers use the (Exchange). Records provide the basic Average Burden per Response: information from 217.7505(d), where source of factual data about a person’s Approximately 8.7 hours. the offeror submits with its proposal, employment with the agency and have Annual Burden Hours: 886,703. price and quantity data on any various uses by the Exchange personnel Needs and Uses: DFARS Part 217 Government orders for the office, including screening prescribes policies and procedures for replenishment part issued within the qualifications of employees, acquiring supplies and services by most recent 12 months. determining status, eligibility, and special contracting methods. Affected Public: Businesses or other employee’s rights and benefits, Contracting officers use the required for-profit and not-for-profit institutions. computing length of service and other information as follows: Frequency: On occasion. information needed to provide The clause at DFARS 252.217–7012 is OMB Desk Officer: Ms. Jasmeet personnel services. used in master agreements for repair Seehra. Affected Public: Individuals or and alteration of vessels. Contracting Written comments and households. officers use the information required by recommendations on the proposed Annual Burden Hours: 208,000 hours. paragraph (d) of the clause to determine information collection should be sent to Number of Respondents: 260,000. that the contractor is adequately Ms. Seehra at the Office of Management Responses per Respondent: 3.2. insured. This requirement supports and Budget, Desk Officer for DoD, Room Average Burden per Response: 15 prudent business practice, because it 10236, New Executive Office Building, Minutes. limits the Government’s liability as a Washington, DC 20503. Frequency: On Occasion. related party to the work the contractor You may also submit comments, Respondents are Exchange personnel performs. Contracting officers use the identified by docket number and title, who are active, terminated, or retired. information required by paragraphs (f) by the following method:

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• Federal eRulemaking Portal: http:// Crane Division, Code OOL, Bldg 2, 300 PERCHLORATE–FREE YELLOW www.regulations.gov. Follow the Highway 361, Crane, IN 47522–5001. SIGNAL FLARE COMPOSITION//Patent instructions for submitting comments. FOR FURTHER INFORMATION CONTACT: Mr. No. 8,215,236: SIGNAL Instructions: All submissions received Christopher Monsey, Naval Surface TRANSMISSION SURVEILLANCE must include the agency name, docket Warfare Center, Crane Division, Code SYSTEM//Patent No. 8,001,901: number, and title for the Federal OOL, Bldg 2, 300 Highway 361, Crane, SIGNAL TRANSMISSION Register document. The general policy IN 47522–5001, telephone 812–854– SURVEILLANCE SYSTEM//Patent No. for comments and other public 4100. 8,543,357: RF POWER DENSITY AND submissions from members of the public Authority: 35 U.S.C. 207, 37 CFR part 404 FIELD CHARACTERIZATION is to make these submissions available TECHNIQUE//Patent No. 8,788,218: Dated: December 29, 2014. for public viewing on the internet at EVENT DETECTION SYSTEM HAVING http://www.regulations.gov as they are N.A. Hagerty-Ford, MULTIPLE SENSOR SYSTEMS IN received without change, including any Commander, Judge Advocate General’s Corps, COOPERATION WITH AN IMPACT personal identifiers or contact U.S. Navy, Federal Register Liaison Officer. DETECTION SYSTEM//Patent No. information provided. To confirm [FR Doc. 2015–00012 Filed 1–6–15; 8:45 am] 8,788,220: VEHICLE DAMAGE receipt of your comment(s), please BILLING CODE 3810–FF–P DETECTION SYSTEM//Patent No. check http://www.regulations.gov 8,365,664: IMPULSE CARTRIDGE// approximately two to three days after Patent No. 8,250,979: MULTIPLE BAY DEPARTMENT OF DEFENSE submission to verify posting (except EJECTION DEVICE SYSTEM//Patent allow 30 days for posting of comments Department of the Navy No. 8,671,840: FLEXIBLE submitted by mail). FRAGMENTATION SLEEVE//Patent DoD Clearance Officer: Mr. Frederick Notice of Availability of Government- No. 8,234,978: HAND–HELD FIRING C. Licari. Owned Inventions; Available for DEVICE//Patent No. 8,356,541: Written requests for copies of the Licensing VEHICLE PROTECTIVE STRUCTURE// information collection proposal should Patent No. 8,146,480: VEHICLE be sent to Mr. Licari at: Publication AGENCY: Department of the Navy, DoD. PROTECTIVE STRUCTURE//Patent No. Collections Program, WHS/ESD ACTION: Notice. 8,479,434: ACCESSORY INTERFACE Information Management Division, 4800 SYSTEM//Patent No. 8,478,335: Mark Center Drive, 2nd Floor, East SUMMARY: The inventions listed below SYSTEM AND METHOD FOR RADIO Tower, Suite 02G09, Alexandria, VA are assigned to the United States COMMUNICATION//Patent No. 22350–3100. Government, as represented by the Secretary of the Navy and are available 8,151,426: METHOD OF CONVERTING Manuel Quinones, for domestic and foreign licensing by A TRAILER CONFIGURATION//Patent Editor, Defense Acquisition Regulations the Department of the Navy. No. 8,276,325: VEHICLE AND MAST System. The following patents are available for MOUNTING ASSEMBLY THEREFOR// [FR Doc. 2014–30915 Filed 1–6–15; 8:45 am] licensing: Patent No. 8,784,584: Patent No. 8,146,283: WEAPON BILLING CODE 5001–06–P PERCHLORATE–FREE YELLOW MOUNTED ADAPTER//Patent No. SIGNAL FLARE COMPOSITION//Patent 7,988,802: THERMITE TORCH No. 8,782,944: ACCESSORY FORMULATION INCLUDING DEPARTMENT OF DEFENSE INTERFACE SYSTEM//Patent No. COMBINED OXIDIZERS//Patent No. 8,802,983: PROTECTIVE MEMBERS 7,998,291: THERMITE TORCH Department of the Navy FOR AN ELECTRICAL INTERFACE FORMULATION INCLUDING MOLYBDENUM TRIOXIDE//Patent No. Notice of Intent To Grant Partially ASSEMBLY//Patent No. 8,669,504: 8,737,634: WIDE AREA NOISE Exclusive Patent License; Vann HAND LAUNCHABLE UNMANNED CANCELLATION SYSTEM AND Technology, LLC AERIAL VEHICLE//Patent No. 8,738,324: METHOD AND SYSTEM METHOD//Patent No. 8,297,626: AGENCY: Department of the Navy, DoD. FOR DETERMINATION OF PRESSURE SEAL//Patent No. 8,154,954: ACTION: Notice. DETECTION PROBABILITY OF A PROJECTILE FOR FOCUSING A TARGET OBJECT BASED ON A KINETIC PULSE ARRAY//Patent No. SUMMARY: The invention listed below is RANGE//Patent No. 8,493,261: 7,804,741: SYSTEM AND METHOD assigned to the United States COUNTERMEASURE DEVICE FOR A FOR FOCUSING A KINETIC PULSE Government as represented by the MOBILE TRACKING DEVICE//Patent ARRAY//Patent No. 7,948,829: Secretary of the Navy. The Department No. 8,526,097: TUNABLE DETECTION LOCATOR SYSTEM AND METHOD of the Navy hereby gives notice of its SYSTEM//Patent No. 8,576,548: INCLUDING NODE AND TARGET intent to grant to Vann Technology, COMMUNICATIONS VEHICLE//Patent ACQUISITION//Patent No. 8,402,892: LLC. a revocable, nonassignable, No. 8,692,171: HAND LAUNCHABLE SIMULTANEOUS NONELECTRIC exclusive license to practice in the UNMANNED AERIAL VEHICLE//Patent PRIMING ASSEMBLY AND METHOD// United States, the Government-owned No. 8,434,397: HELICOPTER WEAPON Patent No. 8,408,460: AUTO invention described below: U.S. Patent MOUNTING SYSTEM//Patent No. ADJUSTING RANGING DEVICE//Patent 6,902,316 (Navy Case 85003): Issued 8,209,897: TARGETING SYSTEM FOR No. 8,281,718: EXPLOSIVE FOIL June 7, 2005, entitled ‘‘NON-INVASIVE A PROJECTILE LAUNCHER//Patent No. INITIATOR AND METHOD OF CORROSION SENSOR’’. 8,573,109: AMMUNITION CANISTER MAKING//Patent No. 8,445,813: DATES: Anyone wishing to object to the AND FEED SYSTEM//Patent No. COMPACT PORTABLE HIGH POWER grant of this license must file written 8,692,729: ANTENNA WITH SHAPED YTTERBIUM LASER//Patent No. objections along with supporting DIELECTRIC LOADING//Patent No. 7,999,230: TUNABLE DETECTION evidence, if any, not later than January 8,531,114: ILLUMINATION BEACON// SYSTEM AND METHOD OF USE// 26, 2015. Patent No. 8,216,403: PERCHLORATE– Patent No. 8,420,977: HIGH POWER ADDRESSES: Written objections are to be FREE RED SIGNAL FLARE LASER SYSTEM//Patent No. 8,367,991: filed with Naval Surface Warfare Center, COMPOSITION//Patent No. 8,366,847: MODULATION DEVICE FOR A

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MOBILE TRACKING DEVICE//Patent DISRUPTING ELECTRICAL POWER TARGETING SYSTEM//Patent No. No. 8,581,771: SCENE ILLUMINATOR// TRANSMISSION//Patent No. 8,082,849: 8,.436,276: PORTABLE CUTTING Patent No. 8,212,709: SHORT TERM POWER GRID DEVICE FOR BREACHING A COUNTERMEASURE METHOD FOR A DISRUPTION DEVICE//Patent No. BARRIER//Patent No.8,149,153: MOBILE TRACKING DEVICE//Patent 8,267,014: MULTIPLE BAY EJECTION INSTRUMENTATION STRUCTURE No. 8,146,476: VEHICLE PROTECTIVE DEVICE//Patent No. 8,366,054: HAND WITH REDUCED ELECTROMAGNETIC STRUCTURE//Patent No. 7,946,210: LAUNCHABLE UNMANNED AERIAL RADIATION REFLECTIVITY OR VEHICLE PROTECTIVE STRUCTURE// VEHICLE//Patent No. 8,656,081: INTERFERENCE CHARACTERISTICS// Patent No. 7,811,092: ROTARY SYSTEM AND METHOD FOR Patent No. 7,812,932: UNIVERSAL ELECTRICAL CONTACT DEVICE// COORDINATING CONTROL OF AN LASER RANGE EVALUATION AND Patent No. 8,683,451: SYSTEM AND OUTPUT DEVICE BY MULTIPLE VERIFICATION SYSTEM//Patent No. METHOD FOR TRANSLATING CONTROL CONSOLES//Patent No. 8,001,902: SIGNAL TRANSMISSION SOFTWARE CODE//Patent No. 8,297,191: PRESSURE SEAL//Patent No. SURVEILLANCE SYSTEM//Patent No. 8,704,891: EXTERNAL MOUNTED 8,264,417: APERTURE ANTENNA 8,077,098: ANTENNA TEST SYSTEM// ELECTRO OPTIC SIGHT FOR A WITH SHAPED DIELECTRIC Patent No. 8,058,189: METHOD AND VEHICLE//Patent No. 8,398,038: LOADING//Patent No. 8,213,547: APPARATUS FOR RESISTING WHEEL SUPPORT//Patent No. IDENTIFICATION OF TARGET BALLISTIC IMPACT//Patent No. 8,557,421: REUSABLE SIGNALS IN RADIO FREQUENCY 8,240,520: MATERIAL EXTRUDER// ELECTROCHEMICAL CELL TEST PULSED ENVIRONMENTS//Patent No. Patent No. 8,004,455: ANTENNA FIXTURE//Patent No. 8,667,333: 8,244,268: SYSTEM AND METHOD SIMULATOR//Patent No. 7,885,001: EXTENSIBLE TESTING SYSTEM// FOR COMMUNICATING WITH A TILT LOCK MECHANISM AND Patent No. 8,688,795: GPS EMBEDDED PLURALITY OF REMOTE METHOD FOR A MOVEABLE OPTICAL INTERACTIVE NETWORK COMMUNICATION UNITS//Patent No. OR DISPLAY DEVICE//Patent No. INTERFACE//Patent No. 8,151,683: 8,147,133: TOP LOADED TWIN CELL 7,823,498: VEHICLE PROTECTIVE LINK CHUTE EJECTION ADAPTER// CALORIMETER SYSTEM WITH STRUCTURE//Patent No. 7,940,225: Patent No. 8,316,023: DATA REMOVABLE REFERENCE//Patent No. DISCONE ANTENNA WITH MANAGEMENT SYSTEM//Patent No. 7,882,785: DEMOLITION CHARGE ASYMMETRIC DIELECTRIC 8,283,562: ELECTRICAL INTERFACE HAVING A MULTI–PRIMED LOADING//Patent No. 8,211,559: ASSEMBLY//Patent No. 8,789,261: INITIATION SYSTEM//Patent METHOD AND SYSTEM FOR COMMUNICATIONS VEHICLE//Patent No.7,882,784: DEMOLITION CHARGE DETECTING LEAKAGE OF ENERGY No. 8,450,609: PROTECTIVE MEMBERS HAVING A MULTI–PRIMED STORAGE STRUCTURE LIQUID// FOR AN ELECTRICAL INTERFACE INITIATION SYSTEM//Patent No. Patent No. 7,774,913: DEVICE AND ASSEMBLY//Patent No. 7,841,898: 8,368,996: TUNABLE DETECTION METHOD FOR SEPARATING PARTS CONNECTOR ADAPTOR//Patent No. SYSTEM//Patent No. 8,156,050: OF ACOUSTIC SENSORS//Patent No. 8,744,783: SYSTEM AND METHOD PROJECT MANAGEMENT SYSTEM 7,938,066: STRIP CHARGE STORAGE FOR MEASURING POWER AND METHOD//Patent No. 8,421,673: ARRANGEMENT//Patent No. 7,470,883: GENERATED DURING LEGGED METHOD AND SOFTWARE FOR NON–INVASIVE INITIATION LOCOMOTION//Patent No. 8,423,336: SPATIAL PATTERN ANALYSIS//Patent DETONATION SENSOR//Patent No. AERODYNAMIC SIMULATION No. 7,813,223: SYSTEM AND METHOD 7,472,652: DEMOLITION CHARGE SYSTEM AND METHOD FOR OBJECTS FOR FOCUSING A KINETIC PULSE HAVING MULTI–PRIMED INITIATION DISPENSED FROM AN AIRCRAFT// ARRAY//Patent No. 8,279,118: SYSTEM//Patent No. 8,576,953: Patent No.8,366,946: FRAME FOR APERIODIC ANTENNA ARRAY//Patent IDENTIFICATION OF TARGET HOLDING LAMINATE DURING No. 8,146,992: TURRET SEAT//Patent SIGNALS IN RADIO FREQUENCY PROCESSING//Patent No. 8,069,767: No. 8,277,583: PERCHLORATE–FREE PULSED ENVIRONMENTS//Patent No. GUN MOUNT AND EJECTION RED SIGNAL FLARE COMPOSITION// 8,259,860: IDENTIFICATION OF SYSTEM//Patent No. 8,151,684: Patent No. 8,568,542: PERCHLORATE– TARGET SIGNALS IN RADIO AMMUNITION CANISTER AND FEED FREE YELLOW SIGNAL FLARE FREQUENCY PULSED SYSTEM//Patent No. 7,811,132: COMPOSITION//Patent No. 7,988,801: ENVIRONMENTS//Patent No. ELECTROMAGNETIC INTERFERENCE PERCHLORATE–FREE GREEN SIGNAL 7,049,998: INTEGRATED RADAR, PROTECTIVE BACKSHELL FOR FLARE COMPOSITION//Patent No. OPTICAL SURVEILLANCE, AND CABLES//Patent No. 8,002,914: 8,264,486: REALTIME–HIGH SPEED SIGHTING SYSTEM//Patent No. SMOKELESS FLASH POWDER//Patent THREE DIMENSIONAL MODELING 8,150,325: BLANKING SYSTEM//Patent No. 8,146,993: ROTATABLE SEAT SYSTEM//Patent No. 8,667,206: No. 7,157,290: MAGNETICALLY ASSEMBLY//Patent No. 8,055,206: INTERFACE DEVICE FOR SHIELDED CIRCUIT BOARD//Patent SIGNAL TRANSMISSION COORDINATING CONTROL OF AN No. 7,573,235: BATTERY CHARGER SURVEILLANCE SYSTEM//Patent No. OUTPUT DEVICE BY MULTIPLE AND POWER REDUCTION SYSTEM 8,004,660: METHOD AND SYSTEM CONTROL CONSOLES//Patent No. AND METHOD//Patent No. 7,242,346: FOR DETERMINATION OF 7,966,763: TARGETING SYSTEM FOR PULSE DESCRIPTOR WORD DETECTION PROBABILITY OF A A PROJECTILE LAUNCHER//Patent No. GENERATOR//Patent No. 6,970,002: TARGET OBJECT BASED ON 8,210,557: CONVERTIBLE TRAILER// TUBE MEASUREMENT AND VIBRATION//Patent No. 8,447,563: Patent No. 8,264,409: CALIBRATION SYSTEM//Patent No. METHOD AND SYSTEM FOR ELECTROMAGNETIC RADIATION 7,222,525: SKIN AND TISSUE DETERMINATION OF DETECTION SOURCE LOCATING SYSTEM//Patent SIMULANT FOR MUNITIONS PROBABILITY OR A TARGET OBJECT No. 8,305,252: COUNTERMEASURE TESTING//Patent No. 7,361,206: BASED ON A RANGE//Patent No. DEVICE FOR MOBILE TRACKING APPARATUS AND METHOD FOR 8,149,390: USER INTERFACE FOR DEVICE//Patent No. 7,635,266: WATER VAPOR REMOVAL IN AN ION LASER TARGETING SYSTEM//Patent ROTARY ELECTRICAL CONTACT MOBILITY SPECTROMETER//Patent No. 7,987,791: METHOD OF DEVICE//Patent No. 8,452,569: LASER No. 7,078,680: ION MOBILITY

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SPECTROMETER USING ION BEAM Vocational Rehabilitation (VR) any Rehabilitation Long-Term Training MODULATION & WAVELET Counseling Notice inviting applications program for the fourth and fifth years, DECOMPOSITION//Patent No. for new awards for fiscal year (FY) 2015. the Secretary will consider the 7,458,305: MODULAR SAFE ROOM// Catalog of Federal Domestic requirements of 34 CFR 75.253(a), and Patent No. 7,058,377: PULSED RADIO Assistance (CFDA) Number: 84.129B. in addition— FREQUENCY MEASUREMENT//Patent DATES: Applications Available: January (a) The recommendation of the RSA No. 6,798,888: MOUNT FOR 7, 2015. project officer who will monitor the UNDERWATER ACOUSTIC Projector// Date of Pre-Application Webinar: reported annual performance of the Patent No. 6,798,122: LIGHTWEIGHT January 15, 2015. grantee’s training program and measure UNDERWATER ACOUSTIC Deadline for Transmittal of it against the projections stated in the PROJECTOR//Patent No. 6,700,517: Applications: March 9, 2015. grantee’s application. This review will PHOTONIC ANALOG–TO–DIGITAL Deadline for Intergovernmental consider the number of students CONVERTER//Patent No. 6,995,359: Review: May 7, 2015. actually enrolled in the grantee’s MINIATURE CRYOGENIC SHUTTER Full Text of Announcement training program, the number of ASSEMBLY//Patent No. 6,564,690: students who successfully enter INTERFACE PALLET ASSEMBLY FOR I. Funding Opportunity Description qualifying employment with State VR A HELICOPTER–BASED WEAPON Purpose of Program: The agencies, and the number who obtain SYSTEM//Patent No. 6,675,694: Rehabilitation Long-Term Training qualifying employment in related MACHINE GUN & AMMUNITION CAN program provides financial assistance agencies. INTERFACE GUN MOUNT//Patent No. for projects that provide— (b) The timeliness and effectiveness 6,582,246: FOLDABLE CONNECTOR (1) Basic or advanced training leading with which all requirements of the grant ASSEMBLY FOR ELECTRONIC to an academic degree in areas of award have been or are being met by the DEVICE//Patent No. 6,665,594: PLUG & personnel shortages in rehabilitation as grantee, including the submission of PLAY MODULAR MISSION identified by the Secretary; annual performance reports and annual PAYLOADS//Patent No. 7,278,310: (2) A specified series of courses or RSA scholar payback program reports, NON–INVASIVE MEASUREMENT program of study leading to the award and adherence to fiduciary SYSTEM//Patent No. 6,570,539: of a certificate in areas of personnel responsibilities related to the budget METHOD FOR VIBRATION shortages in rehabilitation as identified submitted in the application; and DETECTION DURING NEAR–FIELD by the Secretary; and (c) The quality, relevance, and ANTENNA TESTING//Patent No. (3) Support for medical residents usefulness of the grantee’s training 6,961,887: STREAMLINED LASAR–TO– enrolled in residency training programs program and activities and the degree to L200 POST–PROCESSING FOR CASS. in the specialty of physical medicine which the training program and and rehabilitation. ADDRESSES: Requests for copies of the activities and their outcomes have Priorities: This notice includes two contributed to significantly improving patents cited should be directed to absolute priorities. In accordance with Naval Surface Warfare Center, Crane the quality of VR professionals ready for 34 CFR 75.105(b)(2)(ii), Absolute employment with State VR agencies and Division, Code OOL, Bldg 2, 300 Priority 1 is from the regulations for this Highway 361, Crane, IN 47522–5001. related agencies, as measured by the program (34 CFR 386.1). Absolute percentage of students entering eligible FOR FURTHER INFORMATION CONTACT: Mr. Priority 2 is from the notice of final employment under 34 CFR 386.34. Christopher Monsey, Naval Surface priority for this program, published in Grantees must also provide Warfare Center, Crane Division, Code the Federal Register on November 5, assurances that they will abide by all of OOL, Bldg 2, 300 Highway 361, Crane, 2013 (78 FR 66271). the administrative and performance IN 47522–5001, telephone 812–854– Absolute Priorities: For FY 2015 and reporting requirements associated with 4100. any subsequent year in which we make the RSA scholar payback program Authority: 35 U.S.C. 207, 37 CFR part 404. awards from the list of unfunded reports and will retain all the Dated: December 29, 2014. applicants from this competition, these documentation, including the priorities are absolute priorities. Under N.A. Hagerty-Ford, scholarship agreement, exit forms, and 34 CFR 75.105(c)(3) we consider only any other documentation, necessary to Commander, Judge Advocate General’s Corps, applications that meet both of these U.S. Navy, Federal Register Liaison Officer. ensure students understand their priorities. [FR Doc. 2015–00019 Filed 1–6–15; 8:45 am] financial liabilities under this program These priorities are: (34 CFR part 386). BILLING CODE 3810–FF–P Absolute Priority 1—Rehabilitation Long-Term Training Programs Designed Note: While applicants may not hire staff to Provide Academic Training in Areas or select trainees based on race or national DEPARTMENT OF EDUCATION origin/ethnicity, they may conduct outreach of Personnel Shortages. activities to increase the pool of eligible Under 34 CFR 75.105(c)(3), for this Applications for New Awards; minority candidates. We may disqualify and competition, we consider only not consider for funding any applicant that Rehabilitation Training: Rehabilitation applications that propose to provide indicates that it will hire or train a certain Long-Term Training Program— training in the priority area of number or percentage of minority candidates. Vocational Rehabilitation Counseling rehabilitation counseling. Program Authority: 29 U.S.C. 772. AGENCY: Office of Special Education and Absolute Priority 2—Vocational Rehabilitative Services, Department of Rehabilitation Counseling. Applicable Regulations: (a) The Education. Note: The full text of this priority is Education Department General ACTION: Notice. included in the notice of final priority for Administrative Regulations (EDGAR) in this program published in the Federal 34 CFR parts 75, 77, 79, 81, 82, 84, 86, Overview Information: Rehabilitation Register on November 5, 2013 (78 FR 66271) and 99. (b) The OMB Guidelines to Services Administration (RSA)— and in the application package. Agencies on Governmentwide Rehabilitation Training: Rehabilitation Fourth and Fifth Years of the Project: Debarment and Suspension Long-Term Training Program— In deciding whether to continue funding (Nonprocurement) in 2 CFR part 180, as

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adopted and amended as regulations of whichever amount is less. Indirect costs in • Use a font that is either 12 point or the Department in 2 CFR part 3485, and excess of the limit may not be charged larger or no smaller than 10 pitch the Uniform Administrative directly, used to satisfy matching or cost- (characters per inch). Requirements, Cost Principles, and sharing requirements, or charged to another • Use one of the following fonts: Federal award. Audit Requirements for Federal Awards Times New Roman, Courier, Courier New, or Arial. An application submitted in 2 CFR part 200, as adopted and IV. Application and Submission in any other font (including Times amended in 2 CFR part 3474. (c) The Information regulations for this program in 34 CFR Roman or Arial Narrow) will not be parts 385 and 386. (d) The notice of 1. Address to Request Application accepted. final priority published in the Federal Package: You can obtain an application The page limit of 45 pages applies to Register on November 5, 2013 (78 FR package via the Internet, from the all of the application narrative section, 66271). Education Publications Center (ED Part III. We will reject your application Pubs), or from the program office. if you exceed the page limit for Part III. Note: The regulations in 34 CFR part 79 However, the page limit does not apply to all applicants except federally To obtain a copy via the Internet, use recognized Indian tribes. the following address: www.ed.gov/ apply to Part I, the cover sheet; Part II, fund/grant/apply/grantapps/index.html. the budget section, including the narrative budget justification; Part IV, Note: The regulations in 34 CFR part 86 To obtain a copy from ED Pubs, write, apply only to institutions of higher education the assurances and certifications; or the fax, or call the following: ED Pubs, U.S. (IHEs). one-page double-spaced abstract. Department of Education, P.O. Box If you submit optional materials such 22207, Alexandria, VA 22304. II. Award Information as resumes, a bibliography, or letters of Telephone, toll free: 1–877–433–7827. support, please limit these materials to Type of Award: Discretionary grants. FAX: (703) 605–6794. If you use a a total of no more than 30 pages. Estimated Available Funds: telecommunications device for the deaf $4,000,000. Please note that, if you receive (TDD) or a text telephone (TTY), call, funding under the competition, the Contingent upon the availability of toll free: 1–877–576–7734. funds and the quality of applications, abstract will be made available to the You can contact ED Pubs at its Web we may make additional awards in FY public. site, also: www.EDPubs.gov or at its 2016 from the list of unfunded 3. Submission Dates and Times: email address: [email protected]. applicants from this competition. Applications Available: January 7, 2015. Estimated Range of Awards: If you request an application from ED Date of Pre-Application Webinar: $190,000–$200,000. Pubs, be sure to identify this Interested parties are invited to Estimated Average Size of Awards: competition as follows: CFDA number participate in a pre-application webinar. $195,000. 84.129B. The pre-application webinar with staff Maximum Award: We will reject any To obtain a copy from the program from the Department will be held on application that proposes a budget office, contact the person listed under January 15, 2015, at 2:00 p.m. exceeding $200,000 for a single budget FOR FURTHER INFORMATION CONTACT in Washington, DC time. The webinar will period of 12 months. The Assistant section VII of this notice. be recorded. For further information Secretary for Special Education and Individuals with disabilities can about the pre-application webinar, FOR Rehabilitative Services may change the obtain a copy of the application package contact the person listed under maximum amount through a notice in an accessible format (e.g., braille, FURTHER INFORMATION CONTACT in published in the Federal Register. large print, audiotape, or compact disc) section VII of this notice. Deadline for Transmittal of Estimated Number of Awards: 20. by contacting the person or team listed Applications: March 9, 2015. Note: The Department is not bound by any under Accessible Format in section VIII of this notice. Applications for grants under this estimates in this notice. competition must be submitted 2. Content and Form of Application Project Period: Up to 60 months. electronically using the Grants.gov Submission: Requirements concerning Apply site (Grants.gov). For information III. Eligibility Information the content of an application, together (including dates and times) about how with the forms you must submit, are in 1. Eligible Applicants: States and to submit your application the application package for this public or nonprofit agencies and electronically, or in paper format by competition. Page Limit: The organizations, including Indian tribes mail or hand delivery if you qualify for application narrative (Part III of the and IHEs. an exception to the electronic application) is where you, the applicant, 2. Cost Sharing or Matching: Cost submission requirement, please refer to address the selection criteria that sharing of at least 10 percent of the total section IV. 7. Other Submission reviewers use to evaluate your cost of the project is required of grantees Requirements of this notice. application. You must limit the under the Rehabilitation Long-Term We do not consider an application application narrative to the equivalent Training program. The Secretary may that does not comply with the deadline of no more than 45 pages, using the waive part of the non-Federal share of requirements. following standards: the cost of the project after negotiations Individuals with disabilities who • A ‘‘page’’ is 8.5″ × 11″, on one side need an accommodation or auxiliary aid if the applicant demonstrates that it ″ does not have sufficient resources to only, with 1 margins at the top, bottom, in connection with the application contribute the entire match (34 CFR and both sides. process should contact the person listed 386.30). • Double space (no more than three under FOR FURTHER INFORMATION lines per vertical inch) all text in the CONTACT in section VII of this notice. If Note: Under 34 CFR 75.562(c), an indirect cost reimbursement on a training grant is application narrative, including titles, the Department provides an limited to the recipient’s actual indirect headings, footnotes, quotations, accommodation or auxiliary aid to an costs, as determined by its negotiated references, and captions, as well as all individual with a disability in indirect cost rate agreement, or eight percent text in charts, tables, figures, and connection with the application of a modified total direct cost base, graphs. process, the individual’s application

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remains subject to all other before you can submit an application through www.Grants.gov. You must search for requirements and limitations in this Grants.gov. the downloadable application package notice. If you are currently registered with for this competition by the CFDA Deadline for Intergovernmental SAM, you may not need to make any number. Do not include the CFDA Review: May 7, 2015. changes. However, please make certain number’s alpha suffix in your search 4. Intergovernmental Review: This that the TIN associated with your DUNS (e.g., search for 84.129, not 84.129B). competition is subject to Executive Please note the following: number is correct. Also note that you • Order 12372 and the regulations in 34 will need to update your registration When you enter the Grants.gov site, CFR part 79. Information about annually. This may take three or more you will find information about Intergovernmental Review of Federal business days to complete. submitting an application electronically Programs under Executive Order 12372 Information about SAM is available at through the site, as well as the hours of operation. is in the application package for this SAM.gov. To further assist you with • Applications received by Grants.gov competition. obtaining and registering your DUNS 5. Funding Restrictions: We reference are date and time stamped. Your number and TIN in SAM or updating application must be fully uploaded and regulations outlining funding your existing SAM account, we have restrictions in the Applicable submitted and must be date and time prepared a SAM.gov Tip Sheet, which stamped by the Grants.gov system no Regulations section of this notice. you can find at: http://www2.ed.gov/ 6. Data Universal Numbering System later than 4:30:00 p.m., Washington, DC fund/grant/apply/sam-faqs.html. time, on the application deadline date. Number, Taxpayer Identification In addition, if you are submitting your Number, and System for Award Except as otherwise noted in this application via Grants.gov, you must (1) section, we will not accept your Management: To do business with the be designated by your organization as an application if it is received—that is, date Department of Education, you must— Authorized Organization Representative and time stamped by the Grants.gov a. Have a Data Universal Numbering (AOR); and (2) register yourself with system—after 4:30:00 p.m., Washington, System (DUNS) number and a Taxpayer Grants.gov as an AOR. Details on these DC time, on the application deadline Identification Number (TIN); steps are outlined at the following date. We do not consider an application b. Register both your DUNS number Grants.gov Web page: www.grants.gov/ that does not comply with the deadline and TIN with the System for Award web/grants/register.html. requirements. When we retrieve your Management (SAM) (formerly the 7. Other Submission Requirements: application from Grants.gov, we will Central Contractor Registry (CCR)), the Applications for grants under this notify you if we are rejecting your government’s primary registrant competition must be submitted application because it was date and time database; electronically unless you qualify for an stamped by the Grants.gov system after c. Provide your DUNS number and exception to this requirement in 4:30:00 p.m., Washington, DC time, on TIN on your application; and accordance with the instructions in this the application deadline date. d. Maintain an active SAM section. • The amount of time it can take to registration with current information a. Electronic Submission of upload an application will vary while your application is under review Applications. depending on a variety of factors, by the Department and, if you are Applications for grants under the including the size of the application and awarded a grant, during the project Rehabilitation Training: Rehabilitation the speed of your Internet connection. period. Long-Term Training competition, CFDA Therefore, we strongly recommend that You can obtain a DUNS number from number 84.129B, must be submitted you do not wait until the application Dun and Bradstreet. A DUNS number electronically using the deadline date to begin the submission can be created within one to two Governmentwide Grants.gov Apply site process through Grants.gov. business days. at www.Grants.gov. Through this site, • You should review and follow the If you are a corporate entity, agency, you will be able to download a copy of Education Submission Procedures for institution, or organization, you can the application package, complete it submitting an application through obtain a TIN from the Internal Revenue offline, and then upload and submit Grants.gov that are included in the Service. If you are an individual, you your application. You may not email an application package for this competition can obtain a TIN from the Internal electronic copy of a grant application to to ensure that you submit your Revenue Service or the Social Security us. application in a timely manner to the Administration. If you need a new TIN, We will reject your application if you Grants.gov system. You can also find the please allow 2–5 weeks for your TIN to submit it in paper format unless, as Education Submission Procedures become active. described elsewhere in this section, you pertaining to Grants.gov under News The SAM registration process can take qualify for one of the exceptions to the and Events on the Department’s G5 approximately seven business days, but electronic submission requirement and system home page at www.G5.gov. may take upwards of several weeks, submit, no later than two weeks before • You will not receive additional depending on the completeness and the application deadline date, a written point value because you submit your accuracy of the data entered into the statement to the Department that you application in electronic format, nor SAM database by an entity. Thus, if you qualify for one of these exceptions. will we penalize you if you qualify for think you might want to apply for Further information regarding an exception to the electronic Federal financial assistance under a calculation of the date that is two weeks submission requirement, as described program administered by the before the application deadline date is elsewhere in this section, and submit Department, please allow sufficient time provided later in this section under your application in paper format. to obtain and register your DUNS Exception to Electronic Submission • You must submit all documents number and TIN. We strongly Requirement. electronically, including all information recommend that you register early. You may access the electronic grant you typically provide on the following Note: Once your SAM registration is active, application for the Rehabilitation forms: the Application for Federal you will need to allow 24 to 48 hours for the Training: Rehabilitation Long-Term Assistance (SF 424), the Department of information to be available in Grants.gov and Training competition at Education Supplemental Information for

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SF 424, Budget Information—Non- Grants.gov system and that that problem Department at the following address: Construction Programs (ED 524), and all affected your ability to submit your U.S. Department of Education, necessary assurances and certifications. application by 4:30:00 p.m., Application Control Center, Attention: • You must upload any narrative Washington, DC time, on the (CFDA Number 84.129B), LBJ Basement sections and all other attachments to application deadline date. The Level 1, 400 Maryland Avenue SW., your application as files in a PDF Department will contact you after a Washington, DC 20202–4260. (Portable Document) read-only, non- determination is made on whether your You must show proof of mailing modifiable format. Do not upload an application will be accepted. consisting of one of the following: interactive or fillable PDF file. If you Note: The extensions to which we refer in (1) A legibly dated U.S. Postal Service upload a file type other than a read- this section apply only to the unavailability postmark. only, non-modifiable PDF or submit a of, or technical problems with, the Grants.gov (2) A legible mail receipt with the password-protected file, we will not system. We will not grant you an extension date of mailing stamped by the U.S. review that material. if you failed to fully register to submit your Postal Service. • Your electronic application must application to Grants.gov before the (3) A dated shipping label, invoice, or comply with any page-limit application deadline date and time or if the receipt from a commercial carrier. requirements described in this notice. technical problem you experienced is (4) Any other proof of mailing • After you electronically submit unrelated to the Grants.gov system. acceptable to the Secretary of the U.S. your application, you will receive from Exception to Electronic Submission Department of Education. Grants.gov an automatic notification of Requirement: You qualify for an If you mail your application through receipt that contains a Grants.gov exception to the electronic submission the U.S. Postal Service, we do not tracking number. (This notification requirement, and may submit your accept either of the following as proof indicates receipt by Grants.gov only, not application in paper format, if you are of mailing: receipt by the Department.) The unable to submit an application through (1) A private metered postmark. Department then will retrieve your the Grants.gov system because–— (2) A mail receipt that is not dated by application from Grants.gov and send a • You do not have access to the the U.S. Postal Service. second notification to you by email. Internet; or If your application is postmarked after This second notification indicates that • You do not have the capacity to the application deadline date, we will the Department has received your upload large documents to the not consider your application. application and has assigned your Grants.gov system; application a PR/Award number (an ED- and Note: The U.S. Postal Service does not specified identifying number unique to • uniformly provide a dated postmark. Before No later than two weeks before the relying on this method, you should check your application). application deadline date (14 calendar with your local post office. • We may request that you provide us days or, if the fourteenth calendar day original signatures on forms at a later before the application deadline date c. Submission of Paper Applications date. falls on a Federal holiday, the next by Hand Delivery. Application Deadline Date Extension business day following the Federal If you qualify for an exception to the in Case of Technical Issues with the holiday), you mail or fax a written electronic submission requirement, you Grants.gov System: If you are statement to the Department, explaining (or a courier service) may deliver your experiencing problems submitting your which of the two grounds for an paper application to the Department by application through Grants.gov, please exception prevents you from using the hand. You must deliver the original and contact the Grants.gov Support Desk, Internet to submit your application. two copies of your application by hand, toll free, at 1–800–518–4726. You must If you mail your written statement to on or before the application deadline obtain a Grants.gov Support Desk Case the Department, it must be postmarked date, to the Department at the following Number and must keep a record of it. no later than two weeks before the address: U.S. Department of Education, If you are prevented from application deadline date. If you fax Application Control Center, Attention: electronically submitting your your written statement to the (CFDA Number 84.129B), 550 12th application on the application deadline Department, we must receive the faxed Street SW., Room 7039, Potomac Center date because of technical problems with statement no later than two weeks Plaza, Washington, DC 20202–4260. the Grants.gov system, we will grant you before the application deadline date. The Application Control Center an extension until 4:30:00 p.m., Address and mail or fax your accepts hand deliveries daily between Washington, DC time, the following statement to: RoseAnn Ashby, U.S. 8:00 a.m. and 4:30:00 p.m., Washington, business day to enable you to transmit Department of Education, 400 Maryland DC time, except Saturdays, Sundays, your application electronically or by Avenue SW., Room 5055, PCP, and Federal holidays. hand delivery. You also may mail your Washington, DC 20202–2800. FAX: Note for Mail or Hand Delivery of application by following the mailing (202) 245–7591. Paper Applications: If you mail or hand instructions described elsewhere in this Your paper application must be deliver your application to the notice. submitted in accordance with the mail Department— If you submit an application after or hand delivery instructions described (1) You must indicate on the envelope 4:30:00 p.m., Washington, DC time, on in this notice. and—if not provided by the the application deadline date, please b. Submission of Paper Applications Department—in Item 11 of the SF 424 contact the person listed under FOR by Mail. the CFDA number, including suffix FURTHER INFORMATION CONTACT in If you qualify for an exception to the letter, if any, of the competition under section VII of this notice and provide an electronic submission requirement, you which you are submitting your explanation of the technical problem may mail (through the U.S. Postal application; and you experienced with Grants.gov, along Service or a commercial carrier) your (2) The Application Control Center with the Grants.gov Support Desk Case application to the Department. You will mail to you a notification of receipt Number. We will accept your must mail the original and two copies of your grant application. If you do not application if we can confirm that a of your application, on or before the receive this notification within 15 technical problem occurred with the application deadline date, to the business days from the application

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deadline date, you should call the U.S. GAN also incorporates your approved be a parent, relative, spouse, partner, Department of Education Application application as part of your binding sibling, or guardian; Control Center at (202) 245–6288. commitments under the grant. (c) Cumulative financial support 3. Reporting: (a) If you apply for a granted to scholars; V. Application Review Information grant under this competition, you must (d) Scholar debt in years; 1. Selection Criteria: The selection ensure that you have in place the (e) Program completion date and criteria for this competition are from 34 necessary processes and systems to reason for exit for each scholar; CFR 75.210 and 34 CFR 386.20 and are comply with the reporting requirements (f) Annual documentation from the listed in the application package. in 2 CFR part 170 should you receive scholar’s employer(s) until the scholar 2. Review and Selection Process: We funding under the competition. This completes the service obligation. This remind potential applicants that in does not apply if you have an exception documentation must include the reviewing applications in any under 2 CFR 170.110(b). following elements in order to verify discretionary grant competition, the (b) At the end of your project period, qualified employment: Start date of Secretary may consider, under 34 CFR you must submit a final performance employment to the present date, 75.217(d)(3), the past performance of the report, including financial information, confirmation of full-time or part-time applicant in carrying out a previous as directed by the Secretary. If you employment (if the scholar is working award, such as the applicant’s use of receive a multi-year award, you must part-time the number of hours per week funds, achievement of project submit an annual performance report must be included in the objectives, and compliance with grant that provides the most current documentation), type of employment, conditions. The Secretary may also performance and financial expenditure and a description of the roles and consider whether the applicant failed to information as directed by the Secretary responsibilities performed on the job. submit a timely performance report or under 34 CFR 75.118. The Secretary This information is required for each submitted a report of unacceptable may also require more frequent employer if the scholar has worked in quality. performance reports under 34 CFR more than one setting in order to meet In addition, in making a competitive 75.720(c). For specific requirements on the service obligation. grant award, the Secretary also requires reporting, please go to www.ed.gov/ If the scholar is employed in a related various assurances including those fund/grant/apply/appforms/ agency, the agency must also provide applicable to Federal civil rights laws appforms.html. documentation to validate that there is that prohibit discrimination in programs 4. Performance Measures: The a relationship with the State VR agency. or activities receiving Federal financial Government Performance and Results This may be a formal or informal assistance from the Department of Act of 1993 (GPRA) directs Federal contract, cooperative agreement, Education (34 CFR 100.4, 104.5, 106.4, departments and agencies to improve memorandum of understanding, or 108.8, and 110.23). the effectiveness of programs by related document; 3. Special Conditions: Under 2 CFR engaging in strategic planning, setting (g) Annual documentation from the 3474.10, the Secretary may impose outcome-related goals for programs, and scholar’s IHE to verify dates of deferral, special conditions and, in appropriate measuring program results against those if applicable. The documentation may circumstances, high-risk conditions on a goals. be prepared by the scholar’s advisor or grant if the applicant or grantee is not The goal of RSA’s Rehabilitation department chair and must include: financially stable; has a history of Training: Rehabilitation Long-Term Confirmation of enrollment date, unsatisfactory performance; has a Training program is to increase the estimated graduation date, confirmation financial or other management system number of qualified VR personnel, that the scholar is enrolled in a full-time that does not meet the standards in 2 including counselors and other course of study, and confirmation of the CFR part 200, subpart D; has not professional staff, working in State VR scholar’s intent to fulfill the service fulfilled the conditions of a prior grant; or related agencies. At least 75 percent obligation upon completion of the or is otherwise not responsible. of all grant funds must be used for direct program. payment of student scholarships. Grantees are required to report VI. Award Administration Information Grantees are required to maintain a annually to RSA on the data elements 1. Award Notices: If your application system that safeguards the privacy of described above using the RSA Grantee is successful, we notify your U.S. current and former scholars from the Reporting Form, OMB number 1820– Representative and U.S. Senators and time they are enrolled in the program 0617, an electronic reporting system send you a Grant Award Notification until they successfully meet their supported by the RSA Management (GAN); or we may send you an email service obligation through qualified Information System (RSA MIS). In containing a link to access an electronic employment or monetary repayment. addition, grantees are required to utilize version of your GAN. We may notify This system must ensure that scholars all forms required by RSA to prepare you informally, also. sign a payback agreement and an exit and process repayment, as well as If your application is not evaluated or form when they exit the program, requests for deferral and exceptions. not selected for funding, we notify you. regardless of whether they drop out, are The RSA Grantee Reporting Form 2. Administrative and National Policy removed, or successfully complete the collects specific data, including the Requirements: We identify program. Specifically, each grantee is number of scholars entering the administrative and national policy required to maintain the following rehabilitation workforce, the requirements in the application package scholar information: rehabilitation field each scholar enters, and reference these and other (a) Current contact information for all and the type of employment setting each requirements in the Applicable students receiving scholarships, scholar chooses (e.g., State VR agency, Regulations section of this notice. including home address, email, and a nonprofit service provider, or We reference the regulations outlining phone number (home or cell); professional practice group). This form the terms and conditions of an award in (b) A point of contact for each scholar allows RSA to measure results against the Applicable Regulations section of in the event that the grantee is unable the goal of increasing the number of this notice and include these and other to contact the student. This contact qualified VR personnel working in State specific conditions in the GAN. The must be at least 21 years of age and may VR and related agencies.

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In addition, all Rehabilitation Long- (l) Number of scholars receiving RSA print, audiotape, or compact disc) on Term Training grantees must submit the scholarships during the reporting request to the program contact person following quantitative and qualitative period; listed under FOR FURTHER INFORMATION data in an annual performance report: (m) Number of scholars who CONTACT in section VII of this notice. (a) Program activities that occurred graduated from the program during the Electronic Access to This Document: during each fiscal year from October 1 reporting period; The official version of this document is to March 31 and projected program (n) Number of scholars who obtained the document published in the Federal activities to occur from April 1 to qualifying employment during the Register. Free Internet access to the September 30. For subsequent reporting reporting period; official edition of the Federal Register years, grantees confirm projections (o) Number of vacancies filled in the and the Code of Federal Regulations is made from the prior year; State VR agency with qualified available via the Federal Digital System (b) Summary of academic support and counselors from the program during the at: www.gpo.gov/fdsys. At this site you counseling provided to scholars to reporting period; can view this document, as well as all ensure successful completion; (p) A budget and narrative detailing other documents of this Department (c) Summary of career counseling expenditures covering the period of published in the Federal Register, in provided to scholars upon program October 1 through March 31 and text or Adobe Portable Document completion to ensure that they have projected expenditures from April 1 Format (PDF). To use PDF you must support during their search for through September 30. The budget have Adobe Acrobat Reader, which is qualifying employment, as well as narrative must also verify progress available free at the site. during their initial months of their towards meeting the 10 percent match You may also access documents of the employment. This may include but is requirement. For subsequent reporting Department published in the Federal not limited to informing scholars of years, grantees will confirm projections Register by using the article search professional contacts, networks, and job made from the prior year; and feature at: www.federalregister.gov. leads, matching scholars with mentors (q) Other information, as requested by Specifically, through the advanced in the field, and connecting scholars to RSA, in order to verify substantial search feature at this site, you can limit other necessary resources and progress and effectively report program your search to documents published by information; impact to Congress and key the Department. (d) Summary of partnership and stakeholders. coordination activities with State VR 5. Continuation Awards: In making a Dated: January 2, 2015. agencies and community-based continuation award under 34 CFR Michael K. Yudin, rehabilitation providers. This may 75.253, the Secretary considers, among Acting Assistant Secretary for Special include but is not limited to obtaining other things: whether a grantee has Education and Rehabilitative Services. input and feedback regarding curricula made substantial progress in achieving [FR Doc. 2015–00024 Filed 1–6–15; 8:45 am] from State VR agencies and community- the goals and objectives of the project; BILLING CODE 4000–01–P based rehabilitation providers; whether the grantee has expended funds organizing internships, practicum in a manner that is consistent with its agreements, job shadowing, and approved application and budget; and, DEPARTMENT OF EDUCATION mentoring opportunities; and assessing if the Secretary has established scholars at the work site; performance measurement Applications for New Awards; (e) Assistance provided to scholars requirements, the performance targets in Rehabilitation Services who may not be meeting academic the grantee’s approved application. In Administration—Capacity Building standards or who are performing poorly making a continuation grant, the Program for Traditionally Underserved in a practicum or internship setting; Secretary also considers whether the Populations—Vocational Rehabilitation (f) Results of the program evaluation, grantee is operating in compliance with Training Institute for the Preparation of as well as information describing how the assurances in its approved Personnel in American Indian these results will be used to make application, including those applicable Vocational Rehabilitation Services necessary adjustments and to Federal civil rights laws that prohibit Projects improvements to the program; discrimination in programs or activities AGENCY: Office of Special Education and (g) Results from scholar internship, receiving Federal financial assistance Rehabilitative Services, Department of practicum, job shadowing, or mentoring from the Department (34 CFR 100.4, Education. assessments, as well as information 104.5, 106.4, 108.8, and 110.23). describing how those results will be ACTION: Notice. VII. Agency Contact used to ensure that future scholars Overview Information: Rehabilitation FOR FURTHER INFORMATION CONTACT: receive all necessary preparation and Services Administration—Capacity RoseAnn Ashby, U.S. Department of training prior to program completion; Building Program for Traditionally (h) Results from scholar evaluations Education, Rehabilitation Services Underserved Populations—Vocational and information describing how these Administration, 400 Maryland Avenue Rehabilitation (VR) Training Institute results will be used to ensure that future SW., Room 5055, PCP, Washington, DC for the Preparation of Personnel in scholars will be proficient in meeting 20202–2800. Telephone: (202) 245–7258 American Indian Vocational the needs and demands of today’s or by email: [email protected]. Rehabilitation Services Projects consumers and employers; If you use a TDD or TTY, call the (i) Number of scholars who began an Federal Relay Service, toll free, at 1– (Institute) Notice inviting applications internship during the reporting period; 800–877–8339. for new awards for fiscal year (FY) 2015. (j) Number of scholars who completed Catalog of Federal Domestic an internship during the reporting VIII. Other Information Assistance (CFDA) Number: 84.315C. period; Accessible Format: Individuals with DATES: Applications Available: January (k) Number of scholars who dropped disabilities can obtain this document 7, 2015. out or were dismissed from the program and a copy of the application package in Date of Pre-Application Webinar: during the reporting period; an accessible format (e.g., braille, large January 22, 2015.

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Deadline for Transmittal of Federal Register on August 14, 2014 (79 program after the Federal investment is Applications: March 9, 2015. FR 47579). completed. Deadline for Intergovernmental Note: The regulations in 34 CFR part 79 III. Eligibility Information Review: May 7, 2015. apply to all applicants except federally recognized Indian tribes. 1. Eligible Applicants: IHEs, Full Text of Announcement community colleges, and tribal colleges. I. Funding Opportunity Description Note: The regulations in 34 CFR part 86 Applications must reflect a partnership apply to institutions of higher education between a four-year IHE and a two-year Purpose of the Program: The Capacity (IHEs) only. Building Program for Traditionally community college or tribal college. Underserved Populations under section II. Award Information IV. Application and Submission 21(b)(2)(C) of the Rehabilitation Act of Information 1973, as amended (Rehabilitation Act) Type of Award: Cooperative agreement. 1. Address to Request Application (29 U.S.C. 718(b)(2)(C)), provides Package: You can obtain an application outreach and technical assistance (TA) Estimated Available Funds: $500,000. Maximum Award: We will reject any package via the Internet, from the to minority entities and American Education Publications Center (ED Indian tribes to promote their application that proposes a budget exceeding $500,000 for a single budget Pubs), or from the program office. participation in activities funded under To obtain a copy via the Internet, use the Rehabilitation Act, including period of 12 months. The Assistant Secretary for Special Education and the following address: www.ed.gov/ assistance to enhance their capacity to fund/grant/apply/grantapps/index.html. carry out such activities. Rehabilitative Services may change the maximum amount through a notice To obtain a copy from ED Pubs, write, Priorities: This notice includes two fax, or call the following: ED Pubs, U.S. absolute priorities. These priorities are published in the Federal Register. Estimated Number of Awards: 1. Department of Education, P.O. Box from the notice of final priorities for this 22207, Alexandria, VA 22304. program, published in the Federal Note: The Department is not bound by any Telephone, toll free: 1–877–433–7827. Register on August 14, 2014 (79 FR estimates in this notice. FAX: (703) 605–6794. If you use a 47579). telecommunications device for the deaf Absolute Priorities: For FY 2015 and Note: Under 34 CFR 75.562(c), an indirect cost reimbursement on a training grant is (TDD) or a text telephone (TTY), call, any subsequent year in which we make limited to the recipient’s actual indirect toll free: 1–877–576–7734. awards from the list of unfunded costs, as determined by its negotiated You can contact ED Pubs at its Web applicants from this competition, these indirect cost rate agreement, or eight percent site, also: www.EDPubs.gov or at its priorities are absolute priorities. Under of a modified total direct cost base, email address: [email protected]. 34 CFR 75.105(c)(3) we consider only whichever amount is less. Indirect costs in If you request an application from ED applications that meet both of these excess of the limit may not be charged Pubs, be sure to identify this priorities. directly, used to satisfy matching or cost- competition as follows: CFDA number These priorities are: sharing requirements, or charged to another Federal award. 84.315C. Absolute Priority 1—Vocational To obtain a copy from the program Rehabilitation Training Institute for the Project Period: Up to 60 months. office, contact Kristen Rhinehart- Preparation of Personnel in American Continuing the Fourth and Fifth Years Fernandez, U.S. Department of Indian Vocational Rehabilitation of the Project: Education, Rehabilitation Services Services Projects. In deciding whether to continue Administration, 400 Maryland Avenue Absolute Priority 2—Partnership funding the Institute for the fourth and SW., Room 5027, Potomac Center Plaza Between a Four-Year Institution of fifth years, the Department, as part of (PCP), Washington, DC 20202–2800. Higher Education and a Two-Year the review of the cooperative agreement, Telephone: (202) 245–6103 or by email: Community College or Tribal College. the application narrative, the [email protected]. Note: The full texts of the absolute partnership agreement, and annual Individuals with disabilities can priorities are included in the notice of final performance reports will consider the obtain a copy of the application package priorities for this program, published in the degree to which the Institute in an accessible format (e.g., braille, Federal Register on August 14, 2014 (79 FR demonstrates— large print, audiotape, or compact disc) 47579), and in the application package. (a) Substantial progress in providing a by contacting the person or team listed structured training program focused on under Accessible Format in section VIII Program Authority: 29 U.S.C. 718(b)(2)(C). the VR process and practices and the of this notice. Applicable Regulations: (a) The unique skills and knowledge necessary 2. Content and Form of Application Education Department General to improve employment outcomes for Submission: Requirements concerning Administrative Regulations (EDGAR) in American Indians with disabilities. the content of an application, together 34 CFR parts 75, 77, 79, 81, 82, 84, 86 (b) Substantial progress in improving with the forms you must submit, are in and 99. (b) The Office of Management counseling and VR services in a the application package for this and Budget Guidelines to Agencies on culturally appropriate manner to competition. Governmentwide Debarment and American Indians with disabilities so Page Limit: The application narrative Suspension (Nonprocurement) in 2 CFR that they can prepare for, and engage in, (Part III of the application) is where you, part 180, as adopted and amended as gainful employment consistent with the applicant, address the selection regulations of the Department in 2 CFR their informed choice. criteria that reviewers use to evaluate part 3485. (c) The Uniform (c) Effective collaboration between the your application. You must limit the Administrative Requirements, Cost four-year IHE and the two-year application narrative to the equivalent Principles, and Audit Requirements for community college or tribal college that of no more than 45 pages using the Federal Awards in 2 CFR part 200, as demonstrates efficient and effective following standards: adopted and amended in 2 CFR part program and fiduciary operations. • A ‘‘page’’ is 8.5″ × 11″, on one side 3474. (d) The notice of final priorities (d) A commitment to sustain the only, with 1″ margins at the top, bottom, for this program, published in the collaboration and the structured training and both sides.

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• Double space (no more than three an exception to the electronic please allow 2–5 weeks for your TIN to lines per vertical inch) all text in the submission requirement, please refer to become active. application narrative, including titles, section IV. 7. Other Submission The SAM registration process can take headings, footnotes, quotations, Requirements of this notice. approximately seven business days, but references, and captions, as well as all We do not consider an application may take upwards of several weeks, text in charts, tables, figures, and that does not comply with the deadline depending on the completeness and graphs. requirements. accuracy of the data entered into the • Use a font that is either 12 point or Individuals with disabilities who SAM database by an entity. Thus, if you larger or no smaller than 10 pitch need an accommodation or auxiliary aid think you might want to apply for (characters per inch). in connection with the application Federal financial assistance under a • Use one of the following fonts: process should contact the person listed program administered by the Times New Roman, Courier, Courier under FOR FURTHER INFORMATION Department, please allow sufficient time New, or Arial. An application submitted CONTACT in section VII of this notice. If to obtain and register your DUNS in any other font (including Times the Department provides an number and TIN. We strongly Roman or Arial Narrow) will not be accommodation or auxiliary aid to an recommend that you register early. accepted. individual with a disability in Note: Once your SAM registration is active, In addition to the page limit on the connection with the application you will need to allow 24 to 48 hours for the application narrative section, you must process, the individual’s application information to be available in Grants.gov and limit the partnership agreement to the remains subject to all other before you can submit an application through equivalent of no more than 15 pages and requirements and limitations in this Grants.gov. the abstract to the equivalent of no more notice. If you are currently registered with than two pages. The standards listed Deadline for Intergovernmental SAM, you may not need to make any above, which also are applicable to the Review May 7, 2015. changes. However, please make certain application narrative, apply to these 4. Intergovernmental Review: This that the TIN associated with your DUNS sections. competition is subject to Executive We will reject your application if you number is correct. Also note that you Order 12372 and the regulations in 34 will need to update your registration exceed the page limits, or if you apply CFR part 79. Information about other standards and exceed the annually. This may take three or more Intergovernmental Review of Federal business days. equivalent of the page limits. Programs under Executive Order 12372 The only optional materials that will Information about SAM is available at is in the application package for this be accepted are one-page resumes for www.SAM.gov. To further assist you competition. those identified as key personnel, not to with obtaining and registering your 5. Funding Restrictions: We reference exceed a total of five pages. There are DUNS number and TIN in SAM or regulations outlining funding no page standards associated with these updating your existing SAM account, restrictions in the Applicable optional materials. Please note that we have prepared a SAM.gov Tip Sheet, Regulations section of this notice. although optional materials exceeding which you can find at: http:// 6. Data Universal Numbering System the page limit will not result in www2.ed.gov/fund/grant/apply/sam- Number, Taxpayer Identification automatic rejection of an application, faqs.html. Number, and System for Award our reviewers are not required to read In addition, if you are submitting your Management: To do business with the optional materials and will not review application via Grants.gov, you must (1) Department of Education, you must— optional materials exceeding the page be designated by your organization as an a. Have a Data Universal Numbering limit. Authorized Organization Representative Please note that any funded System (DUNS) number and a Taxpayer (AOR); and (2) register yourself with applicant’s application abstract will be Identification Number (TIN); Grants.gov as an AOR. Details on these made available to the public. b. Register both your DUNS number steps are outlined at the following 3. Submission Dates and Times: and TIN with the System for Award Grants.gov Web page: www.grants.gov/ Applications Available January 7, 2015. Management (SAM) (formerly the web/grants/register.html. Date of Pre-Application Webinar: Central Contractor Registry (CCR)), the 7. Other Submission Requirements: Interested parties are invited to Government’s primary registrant Applications for grants under this participate in a pre-application webinar. database; competition must be submitted The pre-application webinar with staff c. Provide your DUNS number and electronically unless you qualify for an from the Department will be held at 2:00 TIN on your application; and exception to this requirement in p.m., Washington DC time, on d. Maintain an active SAM accordance with the instructions in this Thursday, January 22, 2015. The registration with current information section. webinar will be recorded. For further while your application is under review a. Electronic Submission of information about the pre-application by the Department and, if you are Applications. webinar, contact the person listed under awarded a grant, during the project Applications for grants under the For Further Information Contact in period. Capacity Building Program for section VII of this notice. You can obtain a DUNS number from Traditionally Underserved Deadline for Transmittal of Dun and Bradstreet. A DUNS number Populations—Vocational Rehabilitation Applications: March 9, 2015. can be created within one to two Training Institute for the Preparation of Applications for grants under this business days. Personnel in American Indian competition must be submitted If you are a corporate entity, agency, Vocational Rehabilitation Services electronically using the Grants.gov institution, or organization, you can Projects, CFDA number 84.315C, must Apply site (Grants.gov). For information obtain a TIN from the Internal Revenue be submitted electronically using the (including dates and times) about how Service. If you are an individual, you Governmentwide Grants.gov Apply site to submit your application can obtain a TIN from the Internal at www.Grants.gov. Through this site, electronically, or in paper format by Revenue Service or the Social Security you will be able to download a copy of mail or hand delivery if you qualify for Administration. If you need a new TIN, the application package, complete it

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offline, and then upload and submit deadline date to begin the submission contact the Grants.gov Support Desk, your application. You may not email an process through Grants.gov. toll free, at 1–800–518–4726. You must electronic copy of a grant application to • You should review and follow the obtain a Grants.gov Support Desk Case us. Education Submission Procedures for Number and must keep a record of it. We will reject your application if you submitting an application through If you are prevented from submit it in paper format unless, as Grants.gov that are included in the electronically submitting your described elsewhere in this section, you application package for this competition application on the application deadline qualify for one of the exceptions to the to ensure that you submit your date because of technical problems with electronic submission requirement and application in a timely manner to the the Grants.gov system, we will grant you submit, no later than two weeks before Grants.gov system. You can also find the an extension until 4:30:00 p.m., the application deadline date, a written Education Submission Procedures Washington, DC time, the following statement to the Department that you pertaining to Grants.gov under News business day to enable you to transmit qualify for one of these exceptions. and Events on the Department’s G5 your application electronically or by Further information regarding system home page at www.G5.gov. hand delivery. You also may mail your • calculation of the date that is two weeks You will not receive additional application by following the mailing before the application deadline date is point value because you submit your instructions described elsewhere in this provided later in this section under application in electronic format, nor notice. Exception to Electronic Submission will we penalize you if you qualify for If you submit an application after Requirement. an exception to the electronic 4:30:00 p.m., Washington, DC time, on You may access the electronic grant submission requirement, as described the application deadline date, please application for the Capacity Building elsewhere in this section, and submit contact the person listed under FOR your application in paper format. Program for Traditionally Underserved • FURTHER INFORMATION CONTACT in Populations—Vocational Rehabilitation You must submit all documents section VII of this notice and provide an Training Institute for the Preparation of electronically, including all information explanation of the technical problem Personnel in American Indian you typically provide on the following you experienced with Grants.gov, along Vocational Rehabilitation Services forms: the Application for Federal with the Grants.gov Support Desk Case Projects competition at www.Grants.gov. Assistance (SF 424), the Department of Number. We will accept your You must search for the downloadable Education Supplemental Information for application if we can confirm that a application package for this competition SF 424, Budget Information—Non- technical problem occurred with the by the CFDA number. Do not include Construction Programs (ED 524), and all Grants.gov system and the problem the CFDA number’s alpha suffix in your necessary assurances and certifications. affected your ability to submit your • You must upload any narrative search (e.g., search for 84.315, not application by 4:30:00 p.m., sections and all other attachments to 84.315C). Washington, DC time, on the your application as files in a PDF Please note the following: application deadline date. The (Portable Document) read-only, non- • When you enter the Grants.gov site, Department will contact you after a modifiable format. Do not upload an you will find information about determination is made on whether your interactive or fillable PDF file. If you submitting an application electronically application will be accepted. upload a file type other than a read- through the site, as well as the hours of only, non-modifiable PDF or submit a Note: The extensions to which we refer in operation. this section apply only to the unavailability • password-protected file, we will not Applications received by Grants.gov review that material. of, or technical problems with, the Grants.gov are date and time stamped. Your • Your electronic application must system. We will not grant you an extension if you failed to fully register to submit your application must be fully uploaded and comply with any page-limit submitted and must be date and time application to Grants.gov before the requirements described in this notice. application deadline date and time or if the stamped by the Grants.gov system no • After you electronically submit later than 4:30:00 p.m., Washington, DC technical problem you experienced is your application, you will receive from unrelated to the Grants.gov system. time, on the application deadline date. Grants.gov an automatic notification of Except as otherwise noted in this receipt that contains a Grants.gov Exception to Electronic Submission section, we will not accept your tracking number. Requirement: You qualify for an application if it is received—that is, date (This notification indicates receipt by exception to the electronic submission and time stamped by the Grants.gov Grants.gov only, not receipt by the requirement, and may submit your system—after 4:30:00 p.m., Washington, Department.) The Department then will application in paper format, if you are DC time, on the application deadline retrieve your application from unable to submit an application through date. We do not consider an application Grants.gov and send a second the Grants.gov system because— • that does not comply with the deadline notification to you by email. This You do not have access to the requirements. When we retrieve your second notification indicates that the Internet; or • application from Grants.gov, we will Department has received your You do not have the capacity to notify you if we are rejecting your application and has assigned your upload large documents to the application because it was date and time application a PR/Award number (an ED- Grants.gov system; stamped by the Grants.gov system after specified identifying number unique to and 4:30:00 p.m., Washington, DC time, on your application). • No later than two weeks before the the application deadline date. • We may request that you provide us application deadline date (14 calendar • The amount of time it can take to original signatures on forms at a later days or, if the fourteenth calendar day upload an application will vary date. before the application deadline date depending on a variety of factors, Application Deadline Date Extension falls on a Federal holiday, the next including the size of the application and in Case of Technical Issues with the business day following the Federal the speed of your Internet connection. Grants.gov System: If you are holiday), you mail or fax a written Therefore, we strongly recommend that experiencing problems submitting your statement to the Department, explaining you do not wait until the application application through Grants.gov, please which of the two grounds for an

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exception prevents you from using the paper application to the Department by that does not meet the standards in 2 Internet to submit your application. hand. You must deliver the original and CFR part 200, subpart D; has not If you mail your written statement to two copies of your application by hand, fulfilled the conditions of a prior grant; the Department, it must be postmarked on or before the application deadline or is otherwise not responsible. no later than two weeks before the date, to the Department at the following VI. Award Administration Information application deadline date. If you fax address: U.S. Department of Education, your written statement to the Application Control Center, Attention: 1. Award Notices: If your application Department, we must receive the faxed (CFDA Number 84.315C), 550 12th is successful, we notify your U.S. statement no later than two weeks Street SW., Room 7039, Potomac Center Representative and U.S. Senators and before the application deadline date. Plaza, Washington, DC 20202–4260. send you a Grant Award Notification Address and mail or fax your The Application Control Center (GAN); or we may send you an email statement to: Kristen Rhinehart- accepts hand deliveries daily between containing a link to access an electronic Fernandez, U.S. Department of 8:00 a.m. and 4:30:00 p.m., Washington, version of your GAN. We may notify Education, 400 Maryland Avenue SW., DC time, except Saturdays, Sundays, you informally, also. Room 5027, Potomac Center Plaza and Federal holidays. If your application is not evaluated or (PCP), Washington, DC 20202–2800. not selected for funding, we notify you. Note for Mail or Hand Delivery of Paper 2. Administrative and National Policy FAX: (202) 245–7592. Applications: If you mail or hand deliver Your paper application must be your application to the Department— Requirements: We identify submitted in accordance with the mail (1) You must indicate on the envelope administrative and national policy or hand delivery instructions described and—if not provided by the Department—in requirements in the application package in this notice. Item 11 of the SF 424 the CFDA number, and reference these and other including suffix letter, if any, of the b. Submission of Paper Applications requirements in the Applicable competition under which you are submitting Regulations section of this notice. by Mail. your application; and If you qualify for an exception to the We reference the regulations outlining (2) The Application Control Center will the terms and conditions of an award in electronic submission requirement, you mail to you a notification of receipt of your may mail (through the U.S. Postal grant application. If you do not receive this the Applicable Regulations section of Service or a commercial carrier) your notification within 15 business days from the this notice and include these and other application to the Department. You application deadline date, you should call specific conditions in the GAN. The must mail the original and two copies the U.S. Department of Education GAN also incorporates your approved Application Control Center at (202) 245– application as part of your binding of your application, on or before the 6288. application deadline date, to the commitments under the grant. 3. Reporting: (a) If you apply for a Department at the following address: V. Application Review Information grant under this competition, you must U.S. Department of Education, 1. Selection Criteria: The selection ensure that you have in place the Application Control Center, Attention: criteria for this competition are from 34 necessary processes and systems to (CFDA Number 84.315C), LBJ Basement CFR 75.210 and are listed in the comply with the reporting requirements Level 1, 400 Maryland Avenue SW., application package. in 2 CFR part 170 should you receive Washington, DC 20202–4260. 2. Review and Selection Process: We funding under the competition. This You must show proof of mailing remind potential applicants that in does not apply if you have an exception consisting of one of the following: reviewing applications in any under 2 CFR 170.110(b). (1) A legibly dated U.S. Postal Service discretionary grant competition, the (b) At the end of your project period, postmark. Secretary may consider, under 34 CFR you must submit a final performance (2) A legible mail receipt with the 75.217(d)(3), the past performance of the report, including financial information, date of mailing stamped by the U.S. applicant in carrying out a previous as directed by the Secretary. If you Postal Service. award, such as the applicant’s use of receive a multi-year award, you must (3) A dated shipping label, invoice, or funds, achievement of project submit an annual performance report receipt from a commercial carrier. objectives, and compliance with grant that provides the most current (4) Any other proof of mailing conditions. The Secretary may also performance and financial expenditure acceptable to the Secretary of the U.S. consider whether the applicant failed to information as directed by the Secretary Department of Education. submit a timely performance report or under 34 CFR 75.118. The Secretary If you mail your application through submitted a report of unacceptable may also require more frequent the U.S. Postal Service, we do not quality. performance reports under 34 CFR accept either of the following as proof In addition, in making a competitive 75.720(c). For specific requirements on of mailing: grant award, the Secretary also requires reporting, please go to www.ed.gov/ (1) A private metered postmark. various assurances including those fund/grant/apply/appforms/ (2) A mail receipt that is not dated by applicable to Federal civil rights laws appforms.html. the U.S. Postal Service. that prohibit discrimination in programs 4. Performance Measures: The If your application is postmarked after or activities receiving Federal financial Government Performance and Results the application deadline date, we will assistance from the Department of Act of 1993 (GPRA) directs Federal not consider your application. Education (34 CFR 100.4, 104.5, 106.4, departments and agencies to improve Note: The U.S. Postal Service does not 108.8, and 110.23). the effectiveness of programs by uniformly provide a dated postmark. Before 3. Special Conditions: Under 2 CFR engaging in strategic planning, setting relying on this method, you should check 3474.10, the Secretary may impose outcome-related goals for programs, and with your local post office. special conditions and, in appropriate measuring program results against those c. Submission of Paper Applications circumstances, high-risk conditions on a goals. by Hand Delivery. grant if the applicant or grantee is not The goal of the Capacity Building If you qualify for an exception to the financially stable; has a history of Program for Traditionally Underserved electronic submission requirement, you unsatisfactory performance; has a Populations—Vocational Rehabilitation (or a courier service) may deliver your financial or other management system Training Institute for the Preparation of

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Personnel in American Indian Department of Education, Rehabilitation close of business, Friday, January 23, Vocational Rehabilitation Services Services Administration, 400 Maryland 2015, with your name, organization, Projects is to improve the knowledge Avenue SW., Room 5027, PCP, email address, telephone number and a and skills of such personnel so that they Washington, DC 20202–2800. request to join the meeting. Three days can provide appropriate, effective, and Telephone: (202) 245–6103 or by email: before the meeting, instructions on how culturally relevant VR services to assist [email protected]. to join the WebEx webinar will be American Indians with disabilities If you use a TDD or a TTY, call the forwarded to your email address. WebEx prepare for, and engage in, gainful FRS, toll free, at 1–800–877–8339. requires a computer, web browser and employment consistent with their an installed application (free). VIII. Other Information informed choice. FOR FURTHER INFORMATION CONTACT: Dr. The cooperative agreement will Accessible Format: Individuals with Robert J. Wright, U.S. Department of specify the measures that will be used disabilities can obtain this document Energy, 4G–036/Forrestal Building, to assess the grantee’s performance and a copy of the application package in 1000 Independence Avenue SW., against the goals and objectives of the an accessible format (e.g., braille, large Washington, DC 20585–0001; project, including outcome measures print, audiotape, or compact disc) on Telephone: 202–586–0429. and measures that reflect the quality, request to the program contact person SUPPLEMENTARY INFORMATION: relevance, and usefulness of the training listed under FOR FURTHER INFORMATION Purpose of the Council: The National and TA products developed by the CONTACT in section VII of this notice. Coal Council provides advice and Institute. Electronic Access to This Document: recommendations to the Secretary of In its annual and final performance The official version of this document is Energy, on general policy matters report to the Department, the grant the document published in the Federal relating to coal and the coal industry. recipient will be expected to report the Register. Free Internet access to the Purpose of Meeting: The National data outlined in the cooperative official edition of the Federal Register Coal Council (the Council) will hold a agreement that is needed to assess its and the Code of Federal Regulations is virtual meeting via Cisco WebEx at performance, including, at a minimum, available via the Federal Digital System 11:00 a.m. (EST) on Thursday, January the following information related to the at: www.gpo.gov/fdsys. At this site you 29, 2015, for the sole purpose of performance measures for this project: can view this document, as well as all receiving a report, ‘‘Bridging the CCS • The number of participants enrolled other documents of this Department Chasm: An Assessment of Opportunities in the Institute; • published in the Federal Register, in to Advance CCS/CCUS Deployment’’, The number of participants who text or Adobe Portable Document successfully completed the series of from the Council Policy Committee. The Format (PDF). To use PDF you must Council membership will be asked to trainings provided by the Institute; and have Adobe Acrobat Reader, which is • The number of participants who accept the study and forward it to the available free at the site. obtained a VR certificate. U. S. Secretary of Energy. The cooperative agreement and You may also access documents of the The draft report to be presented will annual report will be reviewed by RSA Department published in the Federal be available eight days in advance and the grant recipient between the Register by using the article search (Wednesday, January 21, 2015) at the third and fourth quarter of each project feature at: www.federalregister.gov. following URL: http:// period. Adjustments will be made to the Specifically, through the advanced www.nationalcoalcouncil.org/ _ _ _ project accordingly in order to ensure search feature at this site, you can limit newsletter/Bridging the CCS demonstrated progress towards meeting your search to documents published by Chasm.pdf. the goal and outcomes of the project. the Department. Public Participation: The meeting is 5. Continuation Awards: In making a Dated: January 2, 2015. open to the public. If you would like to continuation award under 34 CFR Michael K. Yudin, file a written statement with the Council, you may do so either before or 75.253, the Secretary considers, among Acting Assistant Secretary for Special other things: whether a grantee has Education and Rehabilitative Services. up to 5 days after the meeting. Please contact Dr. Wright at the address or made substantial progress in achieving [FR Doc. 2015–00022 Filed 1–6–15; 8:45 am] telephone number listed above. the goals and objectives of the project; BILLING CODE 4000–01–P whether the grantee has expended funds Minutes: A link to the audio/video in a manner that is consistent with its recording of the meeting will be posted on the NCC Web site at: http:// approved application and budget; and, DEPARTMENT OF ENERGY if the Secretary has established www.nationalcoalcouncil.org/. performance measurement National Coal Council Issued at Washington, DC on December 31, requirements, the performance targets in 2014. the grantee’s approved application. In AGENCY: Department of Energy. LaTanya R. Butler, making a continuation grant, the ACTION: Notice of open meeting. Deputy Committee Management Officer. Secretary also considers whether the [FR Doc. 2015–00026 Filed 1–6–15; 8:45 am] SUMMARY: This notice announces one grantee is operating in compliance with BILLING CODE 6450–01–P the assurances in its approved virtual meeting of the National Coal application, including those applicable Council (NCC). The Federal Advisory to Federal civil rights laws that prohibit Committee Act (Pub. L. 92–463, 86 Stat. DEPARTMENT OF ENERGY discrimination in programs or activities 770) requires that public notice of these receiving Federal financial assistance meetings be announced in the Federal Federal Energy Regulatory from the Department (34 CFR 100.4, Register. Commission 104.5, 106.4, 108.8, and 110.23). DATES: Thursday, January 29, 2015, 11:00 a.m. to 12:00 p.m. Combined Notice of Filings #1 VII. Agency Contact ADDRESSES: If you wish to join the Take notice that the Commission FOR FURTHER INFORMATION CONTACT: meeting you must forward an email received the following electric rate Kristen Rhinehart-Fernandez, U.S. address to [email protected] by filings:

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Docket Numbers: ER10–1945–005; Description: § 205(d) rate filing per Filed Date: 12/30/14. ER10–2042–017; ER10–2039–005; 35.13(a)(2)(iii): 2014–12–30_SA 6509 Accession Number: 20141230–5263. ER10–1938–012; ER10–1934–011; White Pine SSR Unit 2 to be effective 1/ Comments Due: 5 p.m. ET 1/20/15. ER10–1893–011; ER10–1871–005; 1/2015. Docket Numbers: ER15–773–000. ER10–1406–003; ER10–1862–011. Filed Date: 12/30/14. Applicants: NorthWestern Applicants: Auburndale Peaker Accession Number: 20141230–5237. Corporation. Energy Center, LLC, Calpine Energy Comments Due: 5 p.m. ET 1/20/15. Description: § 205(d) rate filing per Services, L.P., Calpine Newark, LLC, Docket Numbers: ER15–766–000. 35.13(a)(2)(iii): SA 312 Sixth Revised— Calpine Power America—CA, LLC, CES Applicants: Nevada Power Company. NITSA with Southern Montana Co-op to Marketing IX, LLC, CES Marketing X, Description: § 205(d) rate filing per be effective 3/1/2015. LLC, Morgan Energy Center, LLC, 35.13(a)(2)(iii): Rate Schedule No. 147 Filed Date: 12/30/14. Osprey Energy Center, LLC, Power NPC Concurrence with SCE RS 500 to Accession Number: 20141230–5264. Contract Financing, L.L.C. be effective 11/22/2014. Comments Due: 5 p.m. ET 1/20/15. Filed Date: 12/30/14. Description: Updated Market Power Docket Numbers: ER15–774–000. Analysis of the Calpine Southeast MBR Accession Number: 20141230–5243. Comments Due: 5 p.m. ET 1/20/15. Applicants: Southwest Power Pool, Sellers under ER10–1945, et. al. Inc. Docket Numbers: ER15–767–000. Filed Date: 12/31/14. Description: § 205(d) rate filing per Applicants: Midcontinent Accession Number: 20141231–5087. 35.13(a)(2)(iii): Revisions Addressing Independent System Operator, Inc. Comments Due: 5 p.m. ET 3/2/15. Regulation Compensation and Docket Numbers: ER10–1946–008; Description: § 205(d) rate filing per _ Mitigation of Regulation Offers to be ER11–3864–011; ER10–3233–001; 35.13(a)(2)(iii): 2014–12–30 Schedule 43I White Pine SSR Unit 2 to be effective 3/1/2015. ER10–3231–001. Filed Date: 12/30/14. Applicants: Broad River Energy LLC, effective 1/1/2015. Filed Date: 12/30/14. Accession Number: 20141230–5265. EquiPower Resources Management, Comments Due: 5 p.m. ET 1/20/15. LLC, Wheelabrator Ridge Energy Inc., Accession Number: 20141230–5244. Comments Due: 5 p.m. ET 1/20/15. Docket Numbers: ER15–775–000. Wheelabrator South Broward Inc. Applicants: Pacific Gas and Electric Description: Triennial Market Power Docket Numbers: ER15–768–000. Company. Analysis of the ECP MBR Sellers under Applicants: Baconton Power LLC. Description: § 205(d) rate filing per ER10–1946, et. al. Description: Compliance filing per 35.13(a)(2)(iii): CCSF IA—2015 Annual Filed Date: 12/31/14. 35.37: Market Power Analysis Update to Transmission Rate Adjustment to be Accession Number: 20141231–5123. be effective 12/31/2014. Comments Due: 5 p.m. ET 3/2/15. Filed Date: 12/30/14. effective 1/1/2015. Accession Number: 20141230–5246. Filed Date: 12/30/14. Docket Numbers: ER10–2819–003; Comments Due: 5 p.m. ET 3/2/15. Accession Number: 20141230–5266. ER14–413–001; ER14–1397–002; ER14– Comments Due: 5 p.m. ET 1/20/15. 1390–002; ER10–2358–004. Docket Numbers: ER15–769–000. Applicants: Midcontinent Applicants: ALLETE, Inc., ALLETE Docket Numbers: ER15–776–000. Independent System Operator, Inc. Clean Energy, Inc., Storm Lake Power Applicants: NorthWestern Description: § 205(d) rate filing per Partners I LLC, Storm Lake Power Corporation. 35.13(a)(2)(iii): 2014–12–30 ARR Zone Partners II, LLC, Lake Benton Power Description: § 205(d) rate filing per Weighting Factor Calculation to be Partners LLC. 35.13(a)(2)(iii): SA 605 Fourth effective 1/1/2015. Description: Triennial Market Power Revised—NITSA with Bonneville Power Filed Date: 12/30/14. Analysis Update for Central Region of Administration to be effective 3/1/2015. Accession Number: 20141230–5247. Filed Date: 12/30/14. ALLETE, Inc., et. al. under ER10–2819, Comments Due: 5 p.m. ET 1/20/15. et. al. Accession Number: 20141230–5267. Filed Date: 12/30/14. Docket Numbers: ER15–770–000. Comments Due: 5 p.m. ET 1/20/15. Applicants: NorthWestern Accession Number: 20141230–5283. Docket Numbers: ER15–777–000. Comments Due: 5 p.m. ET 3/2/15. Corporation. Applicants: NorthWestern Description: § 205(d) rate filing per Corporation. Docket Numbers: ER13–68–003. 35.13(a)(2)(iii): SA 31 Twelfth Revised— Applicants: Portland General Electric Description: § 205(d) rate filing per NITSA with ConocoPhillips to be 35.13(a)(2)(iii): SA 666 Second Company. effective 3/1/2015. Description: Compliance filing per 35: Revised—NITSA with Suiza Diary Filed Date: 12/30/14. Group LLC to be effective 7/1/2015. Att K Fourth Regional Compliance Accession Number: 20141230–5257. Filed Date: 12/30/14. Filing to be effective 10/1/2013. Comments Due: 5 p.m. ET 1/20/15. Filed Date: 12/30/14. Accession Number: 20141230–5273. Docket Numbers: ER15–771–000. Comments Due: 5 p.m. ET 1/20/15. Accession Number: 20141230–5186. Applicants: NorthWestern Comments Due: 5 p.m. ET 1/20/15. Corporation. Docket Numbers: ER15–778–000. Docket Numbers: ER14–2156–001. Description: § 205(d) rate filing per Applicants: NorthWestern Applicants: Midcontinent 35.13(a)(2)(iii): SA 304 Eighth Revised— Corporation. Independent System Operator, Inc. NITSA with Barretts Minerals Inc to be Description: § 205(d) rate filing per Description: Compliance filing per 35: effective 3/1/2015. 35.13(a)(2)(iii): SA 243 Seventh 2014–12–30 Ramp Compliance to be Filed Date: 12/30/14. Revised—NITSA with CHS Inc to be effective 12/31/9998. Accession Number: 20141230–5262. effective 3/1/2015. Filed Date: 12/30/14. Comments Due: 5 p.m. ET 1/20/15. Filed Date: 12/30/14. Accession Number: 20141230–5258. Docket Numbers: ER15–772–000. Accession Number: 20141230–5282. Comments Due: 5 p.m. ET 1/20/15. Applicants: ALLETE, Inc. Comments Due: 5 p.m. ET 1/20/15. Docket Numbers: ER15–765–000. Description: Compliance filing per 35: Docket Numbers: ER15–779–000. Applicants: Midcontinent Revisions to MBR Tariff to be effective Applicants: NorthWestern Independent System Operator, Inc. 3/1/2015. Corporation.

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Description: § 205(d) rate filing per ITC-Pheasant Run Wind 3rd Rev. GIA Description: Compliance filing per 35.13(a)(2)(iii): SA 32 Fifth Revised— (J075) to be effective 1/1/2015. 35.37: SIGECO (‘‘Vectren South’’) NITSA with Colstrip Steam Electric Filed Date: 12/31/14. Triennial MBR Update to be effective 3/ Station to be effective 3/1/2015. Accession Number: 20141231–5073. 1/2015. Filed Date: 12/31/14. Comments Due: 5 p.m. ET 1/21/15. Filed Date: 12/31/14. Accession Number: 20141231–5000. Docket Numbers: ER15–787–000. Accession Number: 20141231–5117. Comments Due: 5 p.m. ET 1/21/15. Applicants: Southwest Power Pool, Comments Due: 5 p.m. ET 3/2/15. Docket Numbers: ER15–780–000. Inc. Docket Numbers: ER15–794–000. Applicants: New England Power Pool Description: § 205(d) rate filing per Applicants: Catalyst Paper Operations Participants Committee. 35.13(a)(2)(iii): 1148R20 American Inc. Description: § 205(d) rate filing per Electric Power NITSA and NOA to be Description: Initial rate filing per 35.13(a)(2)(iii): January 2015 effective 12/1/2014. 35.12 Catalyst Paper Operations MBR Membership Filing to be effective 12/1/ Filed Date: 12/31/14. Applicatiom to be effective 12/31/9998. 2014. Accession Number: 20141231–5075. Filed Date: 12/31/14. Filed Date: 12/31/14. Comments Due: 5 p.m. ET 1/21/15. Accession Number: 20141231–5134. Accession Number: 20141231–5002. Docket Numbers: ER15–788–000. Comments Due: 5 p.m. ET 1/21/15. Comments Due: 5 p.m. ET 1/21/15. Applicants: Southwest Power Pool, Docket Numbers: ER15–795–000. Docket Numbers: ER15–781–000. Inc. Applicants: AL Sandersville, LLC. Applicants: NorthWestern Description: § 205(d) rate filing per Description: Compliance filing per Corporation. 35.13(a)(2)(iii): Tariff Revisions 35.37: Triennial Update Market Power Description: § 205(d) rate filing per Regarding Thresholds for Uneconomic Analysis Filing for SE Region & Tariff 35.13(a)(2)(iii): SA 290 Fourth Production Investigation to be effective Amendment to be effective 1/1/2015. Revised—NITSA with Holcim US Inc to 3/1/2014. Filed Date: 12/31/14. be effective 3/1/2015. Filed Date: 12/31/14. Accession Number: 20141231–5139. Filed Date: 12/31/14. Accession Number: 20141231–5085. Comments Due: 5 p.m. ET 3/2/15. Accession Number: 20141231–5003. Comments Due: 5 p.m. ET 1/21/15. Docket Numbers: ER15–796–000. Comments Due: 5 p.m. ET 1/21/15. Docket Numbers: ER15–789–000. Applicants: Effingham County Power, Docket Numbers: ER15–782–000. Applicants: Southwest Power Pool, LLC. Applicants: Las Vegas Cogeneration Inc. Description: Compliance filing per Limited Partnership. Description: § 205(d) rate filing per 35.37: Triennial Update Market Power Description: Tariff Withdrawal per 35.13(a)(2)(iii): 2236R5 Golden Spread Analysis Filing for SE Region & Tariff 35.15: Cancellation of Tariff to be Electric Cooperative, Inc. NITSA/NOA Amendment to be effective 1/1/2015. effective 12/31/2014. to be effective 12/1/2014. Filed Date: 12/31/14. Filed Date: 12/31/14. Filed Date: 12/31/14. Accession Number: 20141231–5140. Accession Number: 20141231–5004. Accession Number: 20141231–5086. Comments Due: 5 p.m. ET 3/2/15. Comments Due: 5 p.m. ET 1/21/15. Comments Due: 5 p.m. ET 1/21/15. Docket Numbers: ER15–797–000. Docket Numbers: ER15–783–000. Applicants: Walton County Power, Docket Numbers: ER15–790–000. Applicants: Las Vegas Cogeneration II, LLC. Applicants: Shell Chemical LP. L.L.C. Description: Compliance filing per Description: § 205(d) rate filing per Description: Tariff Withdrawal per 35.37: Triennial Update Market Power 35.13(a)(2)(iii): Revised MBR re 35.15: Cancellation of Tariff to be Analysis for SE Region & Tariff Cateogry 1 in SE to be effective 1/1/ effective 12/31/2014. Amendment to be effective 1/1/2015. 2015. Filed Date: 12/31/14. Filed Date: 12/31/14. Accession Number: 20141231–5005. Filed Date: 12/31/14. Accession Number: 20141231–5141. Comments Due: 5 p.m. ET 1/21/15. Accession Number: 20141231–5088. Comments Due: 5 p.m. ET 3/2/15. Comments Due: 5 p.m. ET 1/21/15. Docket Numbers: ER15–784–000. Docket Numbers: ER15–798–000. Applicants: ArcLight Energy Docket Numbers: ER15–791–000. Applicants: MPC Generating, LLC. Marketing, LLC. Applicants: Motiva Enterprises LLC. Description: Compliance filing per Description: § 205(d) rate filing per Description: § 205(d) rate filing per 35.37: Triennial Update Market Power 35.13(a)(2)(iii): Revised Tariff re 35.13(a)(2)(iii): Revised MBR re Analysis Filing for SE Region & Tariff Category 1 in SE to be effective 1/1/ Category 1 SE Region to be effective 1/ Amendment effective 1/1/2015. 2015. 1/2015. Filed Date: 12/31/14. Filed Date: 12/31/14. Filed Date: 12/31/14. Accession Number: 20141231–5142. Accession Number: 20141231–5069. Accession Number: 20141231–5089. Comments Due: 5 p.m. ET 3/2/15. Comments Due: 5 p.m. ET 1/21/15. Comments Due: 5 p.m. ET 1/21/15. Docket Numbers: ER15–799–000. Docket Numbers: ER15–785–000. Docket Numbers: ER15–792–000. Applicants: Washington County Applicants: Calpine Newark, LLC. Applicants: PJM Interconnection, Power, LLC. Description: Tariff Withdrawal per L.L.C. Description: Compliance filing per 35.15: Notice of Cancellation to be Description: § 205(d) rate filing per 35.37: Triennial Update Market Power effective 1/1/2015. 35.13(a)(2)(iii): Original Service Analysis Filing for SE Region & Tariff Filed Date: 12/31/14. Agreement No. 4061; Queue No. X1– Amendment to be effective 1/1/2015. Accession Number: 20141231–5071. 027A_AT12 to be effective 12/2/2014. Filed Date: 12/31/14. Comments Due: 5 p.m. ET 1/21/15. Filed Date: 12/31/14. Accession Number: 20141231–5143. Docket Numbers: ER15–786–000. Accession Number: 20141231–5090. Comments Due: 5 p.m. ET 3/2/15. Applicants: Midcontinent Comments Due: 5 p.m. ET 1/21/15. Docket Numbers: ER15–800–000. Independent System Operator, Inc. Docket Numbers: ER15–793–000. Applicants: Entergy Arkansas, Inc. Description: § 205(d) rate filing per Applicants: Southern Indiana Gas and Description: Compliance filing per 35.13(a)(2)(iii): 2014–12–31_SA 2523 Electric Company. 35.37: Triennial Market Power Update

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of Entergy Arkansas, Inc. to be effective Comments Due: 5 p.m. ET 1/21/15. 385.214) on or before 5:00 p.m. Eastern N/A. Docket Numbers: ER15–802–000. time on the specified comment date. Filed Date: 12/31/14. Applicants: Entergy Gulf States Protests may be considered, but Accession Number: 20141231–5144. Louisiana, L.L.C. intervention is necessary to become a Comments Due: 5 p.m. ET 3/2/15. Description: Compliance filing per party to the proceeding. Take notice that the Commission 35.37: Triennial Market Power Update eFiling is encouraged. More detailed received the following qualifying of Entergy Gulf States Louisiana, L.L.C. information relating to filing facility filings: to be effective N/A. requirements, interventions, protests, Docket Numbers: QF89–198–009; Filed Date: 12/31/14. service, and qualifying facilities filings EL15–35–000. Accession Number: 20141231–5149. can be found at: http://www.ferc.gov/ Applicants: Kalaeloa Partners, L.P. Comments Due: 5 p.m. ET 3/2/15. docs-filing/efiling/filing-req.pdf. For Description: Form 556 and Petition for Docket Numbers: ER15–803–000. other information, call (866) 208–3676 Recertification as a Qualifying Applicants: Entergy Louisiana, LLC. (toll free). For TTY, call (202) 502–8659. Cogeneration Facility and Temporary Description: Compliance filing per Dated: December 31, 2014. Limited Waiver of the Qualifying 35.37: Triennial Market Power Update Nathaniel J. Davis, Sr., Facility Standards for 2014 of Kalaeloa of Entergy Louisiana, LLC to be effective Deputy Secretary. Partners, L.P. under QF89–198, et. al. N/A. [FR Doc. 2015–00006 Filed 1–6–15; 8:45 am] Filed Date: 12/29/14. Filed Date: 12/31/14. BILLING CODE 6717–01–P Accession Number: 20141229–5210. Accession Number: 20141231–5150. Comments Due: 5 p.m. ET 12/19/14. Comments Due: 5 p.m. ET 3/2/15. The filings are accessible in the Docket Numbers: ER15–804–000. ENVIRONMENTAL PROTECTION Commission’s eLibrary system by Applicants: Entergy Mississippi, Inc. AGENCY clicking on the links or querying the Description: Compliance filing per docket number. 35.37: Triennial Market Power Update [EPA–HQ–OA–2015–0001; FRL 9921–42– OA] Any person desiring to intervene or of Entergy Mississippi, Inc. to be protest in any of the above proceedings effective N/A. Farm, Ranch, and Rural Communities must file in accordance with Rules 211 Filed Date: 12/31/14. Committee (FRRCC); Notice of Meeting and 214 of the Commission’s Accession Number: 20141231–5153. Regulations (18 CFR 385.211 and Comments Due: 5 p.m. ET 3/2/15. AGENCY: Environmental Protection 385.214) on or before 5:00 p.m. Eastern Docket Numbers: ER15–805–000. Agency. time on the specified comment date. Applicants: Entergy New Orleans, Inc. ACTION: Notice of Meeting. Protests may be considered, but Description: Compliance filing per SUMMARY: Under the Federal Advisory intervention is necessary to become a 35.37: Triennial Market Power Update party to the proceeding. Committee Act, Public Law 92–463, the of Entergy New Orleans, Inc. to be Environmental Protection Agency (EPA) eFiling is encouraged. More detailed effective N/A. information relating to filing hereby provides notice of a meeting of Filed Date: 12/31/14. the Farm, Ranch, and Rural requirements, interventions, protests, Accession Number: 20141231–5154. service, and qualifying facilities filings Communities Committee (FRRCC). This Comments Due: 5 p.m. ET 3/2/15. meeting is open to the public. Members can be found at: http://www.ferc.gov/ Docket Numbers: ER15–806–000. docs-filing/efiling/filing-req.pdf. For of the public are encouraged to provide Applicants: PJM Interconnection, comments relevant to the specific issues other information, call (866) 208–3676 L.L.C. (toll free). For TTY, call (202) 502–8659. being considered by the FRRCC. For Description: § 205(d) rate filing per additional information about registering Dated: December 31, 2014. 35.13(a)(2)(iii): Revisions to the OATT, for public comment, please refer to the Nathaniel J. Davis, Sr., OA and RAA re Ministerial Revisions to SUPPLEMENTARY INFORMATION section. Deputy Secretary. Definitions to be effective 3/2/2015. Due to limited space, seating at the [FR Doc. 2015–00005 Filed 1–6–15; 8:45 am] Filed Date: 12/31/14. FRRCC meeting will be limited to a first- BILLING CODE 6717–01–P Accession Number: 20141231–5203. come, first-served basis. Comments Due: 5 p.m. ET 1/21/15. DATES: The Farm, Ranch, and Rural Docket Numbers: ER15–807–000. Communities Committee will convene DEPARTMENT OF ENERGY Applicants: PJM Interconnection, on Wednesday, January 21, 2015, from L.L.C., Duke Energy Ohio, Inc. 9 a.m. until 5 p.m. and will reconvene Federal Energy Regulatory Description: § 205(d) rate filing per Thursday, January 22, 2015, from 9 a.m. Commission 35.13(a)(2)(iii): Duke submits Amended until 3 p.m. (Eastern Standard Time). Service Agreement No. 3140 to be One public comment period relevant Combined Notice of Filings #2 effective 11/10/2014. to specific issues being considered by Take notice that the Commission Filed Date: 12/31/14. the FRRCC is scheduled for Thursday, received the following electric rate Accession Number: 20141231–5223. January 22, 2015, from 2:30 p.m. to 3 filings: Comments Due: 5 p.m. ET 1/21/15. p.m. (Eastern Standard Time). Members Docket Numbers: ER15–801–000. The filings are accessible in the of the public who wish to participate Applicants: NorthWestern Commission’s eLibrary system by during the public comment period are Corporation. clicking on the links or querying the encouraged to pre-register by noon, Description: § 205(d) rate filing per docket number. (Eastern Standard Time), on Monday, 35.13(a)(2)(iii): SA 305 Fifth Revised— Any person desiring to intervene or January 12, 2015. NITSA with Stillwater Mining Company protest in any of the above proceedings ADDRESSES: The meeting will be held at to be effective 7/1/2015. must file in accordance with Rules 211 the EPA Potomac Yard Conference Filed Date: 12/31/14. and 214 of the Commission’s Center located at One Potomac Yard Accession Number: 20141231–5147. Regulations (18 CFR 385.211 and (South Tower Building) on the 1st Floor.

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The street address is 2777 South Crystal to allow EPA sufficient time to process determination are available for Drive, Arlington, Virginia 22202. The your request. inspection between the hours of 8 a.m. meeting is open to the public with Dated: January 2, 2015. and 4:30 p.m., Monday through Friday, limited seating on a first-come, first- Sheritta W. Taylor, at the following offices: served basis. • Drinking Water Branch (3WP21), Acting Designated Federal Officer. FOR FURTHER INFORMATION CONTACT: Water Protection Division, U.S. [FR Doc. 2015–00074 Filed 1–6–15; 8:45 am] Questions or correspondence Environmental Protection Agency BILLING CODE 6560–50–P concerning this meeting should be Region III, 1650 Arch Street, directed to Sheritta W. Taylor, Philadelphia, PA 19103–2029. • Designated Federal Officer, US EPA, ENVIRONMENTAL PROTECTION Office of Drinking Water, Virginia Office of the Administrator (MC1101A), AGENCY Department of Health, Madison 1200 Pennsylvania Avenue NW., Building, 6th Floor, 109 Governor Washington, DC 20460; via email at [FRL–9921–46–Region 3] Street, Room 632, Richmond, VA 23219. [email protected], or via FOR FURTHER INFORMATION CONTACT: Tentative Approval and Solicitation of telephone at 202–564–1771. Request for a Public Hearing for Public George Rizzo at the Philadelphia SUPPLEMENTARY INFORMATION: The Water System Supervision Program address given above, telephone (215) FRRCC is a policy-oriented committee Revision for the Commonwealth of 814–5781, fax (215) 814–2302, or email that provides policy advice, Virginia [email protected]. information, and recommendations to SUPPLEMENTARY INFORMATION: All the EPA Administrator on a range of AGENCY: Environmental Protection interested parties are invited to submit environmental issues and policies that Agency. written comments on this determination are of importance to agriculture and ACTION: Notice of tentative approval and and may request a public hearing. All rural communities. solicitation of requests for a public comments will be considered; if The purpose of this meeting is to hearing. necessary, EPA will issue a response. advance discussion of specific topics of Frivolous or insubstantial requests for a SUMMARY: unique relevance to agriculture such as Notice is hereby given in hearing may be denied by the Regional exploring best practices to maintain soil accordance with the provision of section Administrator. However, if a substantial health, the impact of soil health as it 1413 of the Safe Drinking Water Act, as request for a public hearing is made by relates to air and water quality and the amended, and the requirements February 6, 2015, a public hearing will relationship between soil health and governing the National Primary be held. A request for public hearing extreme weather events across the Drinking Water Regulations shall include the following: (1) The country, in such a way as to provide Implementation, 40 CFR part 142, that name, address, and telephone number of thoughtful advice and useful insights to the Commonwealth of Virginia is the individual, organization, or other the Agency as it crafts environmental revising its approved Public Water entity requesting a hearing; (2) a brief policies and programs that affect and System Supervision Program. The statement of the requesting person’s engage agriculture and rural Commonwealth has adopted the Lead interest in the Regional Administrator’s communities. A copy of the meeting and Copper Rule Short Term Revisions determination and of information that agenda will be posted at http:// which will provide for better public the requesting person intends to submit www.epa.gov/ocem/frrcc. health protection by reducing potential at such a hearing; and (3) the signature Public Comment: Individuals or reproductive and developmental health of the individual making the request; or, groups making oral presentations during risks from lead. The Environmental if the request is made on behalf of an the public comment period will be Protection Agency (EPA) has organization or other entity, the limited to a total presentation time of determined that these revisions are no signature of a responsible official of the five minutes. To accommodate large less stringent than the corresponding organization or other entity. groups addressing the FRRCC, only one Federal regulations. EPA is taking action Dated: December 3, 2014. representative of an organization or to tentatively approve these program group will be allowed to speak during revisions. All interested parties are Shawn M. Garvin, the designated public comment period. invited to submit written comments on Regional Administrator, EPA, Region III. Written comments received by noon, this determination and may request a [FR Doc. 2015–00017 Filed 1–6–15; 8:45 am] (Eastern Standard Time), January 12, public hearing. BILLING CODE 6560–50–P 2015, will be included in the materials DATES: Comments or a request for a distributed to members of the FRRCC. public hearing must be submitted by Written comments received after that February 6, 2015. This determination FEDERAL COMMUNICATIONS date and time will be provided to the shall become effective on February 6, COMMISSION FRRCC as time allows. Requests to make 2015 if no timely and appropriate brief oral comments or provide written request for a hearing is received and the [DA 14–1855] Regional Administrator does not elect statements to the FRRCC should be sent Notice of Debarment to Sheritta W. Taylor, Designated on his own to hold a hearing, and if no Federal Officer, at the contact comments are received which cause AGENCY: Federal Communications information above. EPA to modify its tentative approval. Commission. Meeting Access: For information on ADDRESSES: Comments or a request for ACTION: Notice. access or services for individuals with a public hearing must be submitted to disabilities, please contact Sheritta W. the U.S. Environmental Protection SUMMARY: The Enforcement Bureau (the Taylor at 202–564–1771 or Agency Region III, 1650 Arch Street, ‘‘Bureau’’) debars Gregory Paul Styles [email protected]. To request Philadelphia, PA 19103–2029. from the schools and libraries universal special accommodations, please contact Comments may also be submitted service support mechanism (or ‘‘E-Rate Sheritta W. Taylor, preferably at least electronically to [email protected]. Program’’) for a period of three years. four working days prior to the meeting, All documents relating to this The Bureau takes this action to protect

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the E-Rate Program from waste, fraud, mechanism (E-Rate program) for three its scope, no later than 30 calendar days and abuse. years from either the date of your from either the date of your receipt of DATES: Debarment commences on the receipt of this Notice of Debarment or of the Suspension Notice or of its date Mr. Gregory Paul Styles receives its publication in the Federal Register, publication in the Federal Register, the debarment letter or January 7, 2015, whichever is earlier in time (Debarment whichever date occurred first.8 The whichever date comes first, for a period Date).1 Commission did not receive any such of three years. On August 26, 2014, the opposition from you. Commission’s Enforcement Bureau sent FOR FURTHER INFORMATION CONTACT: Joy For the foregoing reasons, you are M. Ragsdale, Attorney Advisor, Federal you a Notice of Suspension and debarred from participating in activities Communications Commission, Initiation of Debarment Proceedings that associated with or related to the E-Rate Enforcement Bureau, Investigations and was published in the Federal Register program for three years from the on September 22, 2014.2 That 9 Hearings Division, Room 4–C330, 445 Debarment Date. During this debarment Suspension Notice suspended you from 12th Street SW., Washington, DC 20554. period, you are excluded from participating in activities associated Joy Ragsdale may be contacted by participating in any activities associated with or relating to the E-Rate program. telephone at (202) 418–1697 or by email with or related to the E-Rate program, It also described the basis for initiating at [email protected]. If Ms. Ragsdale including the receipt of funds or debarment proceedings against you, the is unavailable, you may contact Ms. discounted services through the E-Rate applicable debarment procedures, and Theresa Cavanaugh, Chief, program, or consulting with, assisting, the effect of debarment. or advising applicants or service Investigations and Hearings Division, by As discussed in the Suspension telephone at (202) 418–1420 and by providers regarding the E-Rate Notice, in March 2011 you were program.10 email at [email protected]. convicted of conspiring with Marvin SUPPLEMENTARY INFORMATION: The Mitch Freeman to obstruct the Sincerely, Bureau debarred Mr. Gregory Paul competitive bidding process and Jeffrey J. Gee Styles from the schools and libraries defraud the E-Rate program of Acting Chief, Investigations and Hearings service support mechanism for a period approximately $788,000.3 As the Division Enforcement Bureau of three years pursuant to 47 CFR 54.8. Management Information Systems cc: Johnnay Schrieber, Universal Service Attached is the debarment letter, DA Director for Chowchilla Elementary Administrative Company (via e-mail) 14–1855, which was mailed to Mr. School District (CESD) you were Rashann Duvall, Universal Service Administrative Company (via e-mail) Styles and released on December 18, responsible for CESD’s procurement 2014. The complete text of the notice of Mark J. McKeon, United States Attorney’s process and, therefore were ineligible to Office, Eastern District of California (via debarment is available for public bid on CESD’s E-Rate projects.4 To e-mail) inspection and copying during regular circumvent the Commission’s [FR Doc. 2015–00035 Filed 1–6–15; 8:45 am] business hours at the FCC Reference competitive bidding rules, you solicited Information Center, Portal II, 445 12th Mr. Freeman to bid on CESD E-Rate BILLING CODE 6712–01–P Street SW., Room CY–A257, contracts through his business, Twisted 5 Washington, DC 20554. In addition, the Head Design. Specifically, you FEDERAL COMMUNICATIONS complete text is available on the FCC’s awarded Mr. Freeman the E-Rate COMMISSION Web site at http://www.fcc.gov. The text contracts knowing he was unqualified to may also be purchased from the perform E-Rate work and that you or a [DA 14–1854] Commission’s duplicating contractor, subcontractor would perform the work, Best Copy and Printing, Inc., Portal II, and bill the Universal Service Notice of Debarment 445 12th Street SW., Room CY–B420, Administrative Company for that work.6 AGENCY: Federal Communications Washington, DC 20554, telephone (202) Pursuant to Section 54.8(c) of the Commission. 488–5300 or (800) 378–3160, facsimile Commission’s rules, your conviction of ACTION: Notice. (202) 488–5563, or via email http:// criminal conduct in connection with the www.bcpiweb.com. E-Rate program is the basis for this SUMMARY: The Enforcement Bureau (the 7 Federal Communications Commission. debarment. ‘‘Bureau’’) debars Marvin Mitch In accordance with the Commission’s Jeffrey J. Gee, Freeman from the schools and libraries debarment rules, you were required to universal service support mechanism Acting Chief, Investigations and Hearings file with the Commission any Division, Enforcement Bureau. (or ‘‘E-Rate Program’’) for a period of opposition to your suspension or its three years. The Bureau takes this action December 18, 2014 scope, or to your proposed debarment or to protect the E-Rate Program from DA 14–1855 waste, fraud, and abuse. 1 SENT VIA CERTIFIED MAIL, RETURN 47 CFR 54.8(e), (g); see also id. 0.111 (delegating DATES: Debarment commences on the authority to the Enforcement Bureau to resolve RECEIPT REQUESTED AND E-MAIL universal service suspension and debarment date Mr. Marvin Mitch Freeman Mr. Gregory Paul Styles proceedings). receives the debarment letter or January 15506 Banjo Court 2 Letter from Jeffrey J. Gee, Acting Chief, 7, 2015, whichever date comes first, for Woodbridge, VA 22193 Investigations and Hearings Division, FCC a period of three years. Re: Debarment Notice, FCC Case No. Enforcement Bureau, to Gregory Paul Styles, Notice of Suspension and Initiation of Debarment FOR FURTHER INFORMATION CONTACT: Joy EB–IHD–14–00013502 Proceedings, 29 FCC Rcd 10109 (Enf. Bur. 2014) M. Ragsdale, Attorney Advisor, Federal Dear Mr. Styles: (Suspension Notice); 79 FR 56579 (Sept. 22, 2014). Communications Commission, The Federal Communications 3 United States v. Gregory P. Styles, Criminal Enforcement Bureau, Investigations and Commission (Commission) hereby Docket No. 1:06CR00013–001, Judgment at 1 (E.D. Hearings Division, Room 4–C330, 445 notifies you that, pursuant to Section Cal. filed March 17, 2011, amended June 15, 2011); Suspension Notice, 29 FCC Rcd at 10110–11. 54.8 of its rules, you are prohibited from 4 Suspension Notice, 29 FCC Rcd at 10110. 8 Id. 54.8(e)(3)–(4). Any opposition had to be filed participating in activities associated 5 Id; see 47 CFR 54.503, 54.511(a). no later than October 22, 2014. with or relating to the schools and 6 Id. 9 Id. 54.8(e)(5), (g). libraries universal service support 7 47 CFR 54.8(c). 10 Id 54.8(a)(1), (5), (d).

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12th Street SW., Washington, DC 20554. you a Notice of Suspension and including the receipt of funds or Joy Ragsdale may be contacted by Initiation of Debarment Proceedings that discounted services through the E-Rate telephone at (202) 418–1697 or by email was published in the Federal Register program, or consulting with, assisting, at [email protected]. If Ms. Ragsdale on September 12, 2014.2 That or advising applicants or service is unavailable, you may contact Ms. Suspension Notice suspended you from providers regarding the E-Rate Theresa Cavanaugh, Chief, participating in activities associated program.9 Investigations and Hearings Division, by with or relating to the E-Rate program. Sincerely, telephone at (202) 418–1420 and by It also described the basis for initiating Jeffrey J. Gee email at [email protected]. debarment proceedings against you, the Acting Chief, Investigations and Hearings SUPPLEMENTARY INFORMATION: The applicable debarment procedures, and Division Enforcement Bureau the effect of debarment. Bureau debarred Mr. Marvin Mitch [FR Doc. 2015–00034 Filed 1–6–15; 8:45 am] Freeman from the schools and libraries As discussed in the Suspension BILLING CODE 6712–01–P service support mechanism for a period Notice, on March 17, 2011, you were of three years pursuant to 47 CFR 54.8. convicted of conspiring with Gregory Paul Styles, the Management Attached is the debarment letter, DA FEDERAL COMMUNICATIONS Information Systems Director for the 14–1854, which was mailed to Mr. COMMISSION Freeman and released on December 18, Chowchilla Elementary School District 2014. The complete text of the notice of (CESD), to obstruct the competitive [DA 14–1856] debarment is available for public bidding process and defraud the E-Rate 3 Notice of Debarment inspection and copying during regular program of approximately $788,000. business hours at the FCC Reference You and Mr. Styles used your silk AGENCY: Federal Communications Information Center, Portal II, 445 12th screening company, Twisted Head Commission. Design, to bid on CESD’s E-Rate Street SW., Room CY–A257, ACTION 4 : Notice. Washington, DC 20554. In addition, the contracts. Mr. Styles awarded E-Rate complete text is available on the FCC’s contracts to Twisted Head Design SUMMARY: The Enforcement Bureau (the Web site at http://www.fcc.gov. The text knowing you and the company were ‘‘Bureau’’) debars Donna P. English from may also be purchased from the unqualified to perform E-Rate work, the schools and libraries universal Commission’s duplicating contractor, performed the work himself or through service support mechanism (or ‘‘E-Rate Best Copy and Printing, Inc., Portal II, his subcontractors, and billed USAC for Program’’) for a period of three years. 5 445 12th Street SW., Room CY–B420, that work. Pursuant to Section 54.8(c) The Bureau takes this action to protect Washington, DC 20554, telephone (202) of the Commission’s rules, your the E-Rate Program from waste, fraud, 488–5300 or (800) 378–3160, facsimile conviction of criminal conduct and abuse. (202) 488–5563, or via email http:// associated with the E-Rate program is DATES: Debarment commences on the 6 www.bcpiweb.com. the basis for this debarment. date Ms. Donna P. English receives the In accordance with the Commission’s debarment letter or January 7, 2015, Federal Communications Commission. debarment rules, you were required to whichever date comes first, for a period Jeffrey J. Gee, file with the Commission any of three years. Acting Chief, Investigations and Hearings opposition to your suspension or its FOR FURTHER INFORMATION CONTACT: Division, Enforcement Bureau. Joy scope, or to your proposed debarment or M. Ragsdale, Attorney Advisor, Federal December 18, 2014 its scope, no later than 30 calendar days Communications Commission, DA 14–1854 from either the date of your receipt of Enforcement Bureau, Investigations and the Suspension Notice or of its SENT VIA CERTIFIED MAIL, RETURN Hearings Division, Room 4–C330, 445 publication in the Federal Register, RECEIPT REQUESTED AND E-MAIL 12th Street SW., Washington, DC 20554. whichever date occurred first.7 The Mr. Marvin Mitch Freeman, Joy Ragsdale may be contacted by 1408 Northhill Street, Commission did not receive any such telephone at (202) 418–1697 or by email Selma, CA 93662, opposition from you. at [email protected]. If Ms. Ragsdale For the foregoing reasons, you are Re: Debarment Notice, FCC Case No. is unavailable, you may contact Ms. debarred from participating in activities EB–IHD–14–00015659 Theresa Cavanaugh, Chief, associated with or related to the E-Rate Dear Mr. Freeman: Investigations and Hearings Division, by program for three years from the The Federal Communications telephone at (202) 418–1420 and by Debarment Date.8 During this debarment Commission (Commission) hereby email at [email protected]. period, you are excluded from notifies you that, pursuant to Section SUPPLEMENTARY INFORMATION: The 54.8 of its rules, you are prohibited from participating in any activities associated with or related to the E-Rate program, Bureau debarred Ms. Donna P. English participating in activities associated from the schools and libraries service with or relating to the schools and support mechanism for a period of three libraries universal service support 2 Letter from Jeffrey J. Gee, Acting Chief, Investigations and Hearings Division, FCC years pursuant to 47 CFR 54.8. Attached mechanism (E-Rate program) for three Enforcement Bureau, to Marvin Mitch Freeman, is the debarment letter, DA 14–1856, years from either the date of your Notice of Suspension and Initiation of Debarment which was mailed to Ms. English and receipt of this Notice of Debarment or of Proceedings, 29 FCC Rcd 10114 (Enf. Bur. 2014) released on December 18, 2014. The its publication in the Federal Register, (Suspension Notice); 79 FR 54718 (Sept. 12, 2014). 3 United States v. Marvin Mitch Freeman, complete text of the notice of debarment whichever is earlier in time (Debarment Criminal Docket No. 1:06-cr-00013–002, Judgment is available for public inspection and 1 Date). at 1 (E.D. Cal. filed March 17, 2011); Suspension copying during regular business hours On August 26, 2014, the Notice, 29 FCC Rcd at 10115–16. at the FCC Reference Information 4 Commission’s Enforcement Bureau sent Suspension Notice, 29 FCC Rcd at 10115. Center, Portal II, 445 12th Street SW., 5 Id. Room CY–A257, Washington, DC 20554. 1 47 CFR 54.8(e), (g); see also id. 0.111 (delegating 6 47 CFR 54.8(c). authority to the Enforcement Bureau to resolve 7 Id.54.8 (e)(3), (4). Any opposition had to be filed In addition, the complete text is universal service suspension and debarment no later than October 3, 2014. proceedings). 8 Id. 54.8(e)(5), (g). 9 Id. 54.8(a)(1), (5), (d).

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available on the FCC’s Web site at Managers, Inc. (PMI) you defrauded the ACTION: Notice. http://www.fcc.gov. The text may also be E-Rate program by completing and filing purchased from the Commission’s E-Rate applications for the River Forest SUMMARY: In accordance with the duplicating contractor, Best Copy and Community School Corporation Federal Advisory Committee Act Printing, Inc., Portal II, 445 12th Street (RFCSC) in violation of the E-Rate (FACA), this notice advises interested SW., Room CY–B420, Washington, DC program rules.4 In addition, you persons that the Federal 20554, telephone (202) 488–5300 or submitted false invoices and received Communications Commission’s (FCC) (800) 378–3160, facsimile (202) 488– more than $200,000 in E-Rate payments Task Force on Optimal Public Safety 5563, or via email http:// from RFCSC and the Universal Service Answering Point (PSAP) Architecture www.bcpiweb.com. Administrative Company for technical (Task Force) will hold its first meeting on January 26, 2015, at 1 p.m. in the Federal Communications Commission. services you did not provide and for 5 Commission Meeting Room of the Jeffrey J. Gee, cash advances you did not repay. Pursuant to Section 54.8(c) of the Federal Communications Commission, Acting Chief, Investigations and Hearings Room TW–C305, 445 12th Street SW., Division, Enforcement Bureau. Commission’s rules, your conviction of criminal conduct in connection with the Washington, DC 20554. December 18, 2014 DA 14–1856 E-Rate program is the basis for this DATES: January 26, 2015. SENT VIA CERTIFIED MAIL, RETURN debarment.6 ADDRESSES: Federal Communications RECEIPT REQUESTED AND E-MAIL In accordance with the Commission’s Commission, Room TW–C305 Ms. Donna P. English 225 Warren Road debarment rules, you were required to (Commission Meeting Room), 445 12th Michigan City, IN 46360 file with the Commission any Street SW., Washington, DC 20554. Re: Debarment Notice, FCC Case No. opposition to your suspension or its FOR FURTHER INFORMATION CONTACT: EB–IHD–14–00015686 scope, or to your proposed debarment or Timothy May, Federal Communications Dear Ms. English: its scope, no later than 30 calendar days Commission, Public Safety and The Federal Communications from either the date of your receipt of Homeland Security Bureau, 202–418– Commission (Commission) hereby the Suspension Notice or of its 1463, email: [email protected]. notifies you that, pursuant to Section publication in the Federal Register, SUPPLEMENTARY INFORMATION: The 54.8 of its rules, you are prohibited from whichever date occurred first.7 The meeting will be held on January 26th, participating in activities associated Commission did not receive any such 2015, from 1:00 p.m. to 4:00 p.m. in the with or relating to the schools and opposition from you. Commission Meeting Room of the FCC, libraries universal service support For the foregoing reasons, you are Room TW–305, 445 12th Street SW., mechanism (E-Rate program) for three debarred from participating in activities Washington, DC 20554. The Task Force years from either the date of your associated with or related to the E-Rate is a Federal Advisory Committee that receipt of this Debarment Notice or of its program for three years from the will study and report findings and publication in the Federal Register, Debarment Date.8 During this debarment recommendations on PSAP structure whichever is earlier in time (Debarment period, you are excluded from and architecture in order to determine 1 Date). participating in any activities associated whether additional consolidation of On August 26, 2014, the with or related to the E-Rate program, PSAP infrastructure and architecture Commission’s Enforcement Bureau sent including the receipt of funds or improvements would promote greater you a Notice of Suspension and discounted services through the E-Rate efficiency of operations, safety of life, Initiation of Debarment Proceedings that program, or consulting with, assisting, and cost containment, while retaining was published in the Federal Register or advising applicants or service 2 needed integration with local first on September 16, 2014. That providers regarding the E-Rate responder dispatch and support. On Suspension Notice suspended you from 9 program. December 2, 2014, pursuant to the participating in activities associated Sincerely, FACA, the Commission established the with or relating to the E-Rate program. Task Force charter for a period of two It also described the basis for initiating Jeffrey J. Gee years, through December 2, 2016. The debarment proceedings against you, the Acting Chief, Investigations and Hearings Task Force will present its initial applicable debarment procedures, and Division Enforcement Bureau findings and recommendations to the the effect of debarment. [FR Doc. 2015–00036 Filed 1–6–15; 8:45 am] Commission no later than April 30, As discussed in the Suspension BILLING CODE 6712–01–P Notice, in October 2011 you were 2015 unless such period is extended by convicted of multiple counts of wire consent of the Chairman of the fraud, one count of mail fraud, and one FEDERAL COMMUNICATIONS Commission (or his designee). count of theft of government property COMMISSION Members of the general public may for activities associated with the E-Rate attend the meeting. The FCC will program.3 As the owner of Project Public Safety and Homeland Security attempt to accommodate as many Bureau; Federal Advisory Committee attendees as possible; however, 1 47 CFR 54.8(e), (g); see also id. 0.111 (delegating Act; Task Force on Optimal Public admittance will be limited to seating authority to the Enforcement Bureau to resolve Safety Answering Point Architecture availability. The Commission will universal service suspension and debarment provide audio and/or video coverage of proceedings). AGENCY: Federal Communications the meeting over the Internet from the 2 Letter from Jeffrey J. Gee, Acting Chief, Commission. FCC’s Web page at http://www.fcc.gov/ Investigations and Hearings Division, FCC Enforcement Bureau, to Donna P. English, Notice of live. 4 Suspension Notice, 29 FCC Rcd at 10120. Suspension and Initiation of Debarment Open captioning will be provided for 5 Proceedings, 29 FCC Rcd 10119 (Enf. Bur. 2014) Id. at 10120–2. this event. Other reasonable 6 47 CFR 54.8(c). (Suspension Notice); 79 FR 55486 (Sept. 16, 2014). accommodations for people with 3 United States v. Donna P. English, Criminal 7 Id. 54.8 (e)(3)–(4). Any opposition had to be Docket No. 2:10–cr–00075–JTM–PRC, Judgment at 1 filed no later than October 3, 2014. disabilities are available upon request. (N.D. Ind. entered Oct. 14, 2011); Suspension 8 Id. 54.8(e)(5), (g). Requests for such accommodations Notice, 29 FCC Rcd at 10120–21. 9 Id. 54.8(a)(1), (5), (d). should be submitted via email to

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[email protected] or by calling the PLACE: The Richard V. Backley Hearing must be received at the Reserve Bank Consumer & Governmental Affairs at Room, Room 511N, 1331 Pennsylvania indicated or the offices of the Board of (202) 418–0432 (TTY). Such requests Avenue NW., Washington, DC 20004 Governors not later than February 2, should include a detailed description of (enter from F Street entrance). 2015. the accommodation requested. In STATUS: Open. A. Federal Reserve Bank of St. Louis addition, please include a way the FCC MATTERS TO BE CONSIDERED: The (Yvonne Sparks, Community may contact you if it needs more Commission will hear oral argument in Development Officer) P.O. Box 442, St. information. Please allow at least five the matter Secretary of Labor v. Jim Louis, Missouri 63166–2034: days’ advance notice; last minute Walter Resources, Inc., Docket No. SE 1. First Horizon National Corporation, requests will be accepted, but may be 2011–407–R (Issues include whether the Memphis, Tennessee; to merge with impossible to fill. Administrative Law Judge erred in TrustAtlantic Financial Corporation, and thereby indirectly acquire Federal Communications Commission. upholding an imminent danger order.) Any person attending this oral TrustAtlantic Bank, both in Raleigh, Marlene H. Dortch, North Carolina. Secretary. argument who requires special accessibility features and/or auxiliary Board of Governors of the Federal Reserve [FR Doc. 2015–00004 Filed 1–6–15; 8:45 am] aids, such as sign language interpreters, System, January 2, 2015. BILLING CODE 6712–01–P must inform the Commission in advance Michael J. Lewandowski, of those needs. Subject to 29 CFR Associate Secretary of the Board. 2706.150(a)(3) and 2706.160(d). [FR Doc. 2015–00033 Filed 1–6–15; 8:45 am] FEDERAL MINE SAFETY AND HEALTH CONTACT PERSON FOR MORE INFO: BILLING CODE 6210–01–P REVIEW COMMISSION Emogene Johnson (202) 434–9935/(202) [BAC 6735–01] 708–9300 for TDD Relay/1–800–877– 8339 for toll free. FEDERAL RESERVE SYSTEM Sunshine Act Notice Sarah L. Stewart, Notice of Proposals To Engage in or January 5, 2015. Deputy General Counsel. To Acquire Companies Engaged in [FR Doc. 2015–00084 Filed 1–5–15; 4:15 pm] Permissible Nonbanking Activities TIME AND DATE: 11:00 a.m., Thursday, BILLING CODE 6735–01–P January 15, 2015. The companies listed in this notice PLACE: The Richard V. Backley Hearing have given notice under section 4 of the Bank Holding Company Act (12 U.S.C. Room, Room 511N, 1331 Pennsylvania FEDERAL RESERVE SYSTEM Avenue NW., Washington, DC 20004 1843) (BHC Act) and Regulation Y, (12 (enter from F Street entrance). Formations of, Acquisitions by, and CFR part 225) to engage de novo, or to STATUS: Open. Mergers of Bank Holding Companies acquire or control voting securities or assets of a company, including the MATTERS TO BE CONSIDERED: The The companies listed in this notice companies listed below, that engages Commission will hear oral argument in have applied to the Board for approval, either directly or through a subsidiary or the matter Secretary of Labor v. Jim pursuant to the Bank Holding Company other company, in a nonbanking activity Walter Resources, Inc., Docket No. SE Act of 1956 (12 U.S.C. 1841 et seq.) that is listed in § 225.28 of Regulation Y 2012–681–R (Issues include whether the (BHC Act), Regulation Y (12 CFR part (12 CFR 225.28) or that the Board has Administrative Law Judge erred in 225), and all other applicable statutes determined by Order to be closely upholding an imminent danger order.) and regulations to become a bank related to banking and permissible for Any person attending this oral holding company and/or to acquire the bank holding companies. Unless argument who requires special assets or the ownership of, control of, or otherwise noted, these activities will be accessibility features and/or auxiliary the power to vote shares of a bank or conducted throughout the United States. aids, such as sign language interpreters, bank holding company and all of the Each notice is available for inspection must inform the Commission in advance banks and nonbanking companies at the Federal Reserve Bank indicated. of those needs. Subject to 29 CFR owned by the bank holding company, The notice also will be available for 2706.150(a)(3) and 2706.160(d). including the companies listed below. inspection at the offices of the Board of CONTACT PERSON FOR MORE INFO: The applications listed below, as well Governors. Interested persons may Emogene Johnson (202) 434–9935/(202) as other related filings required by the express their views in writing on the 708–9300 for TDD Relay/1–800–877– Board, are available for immediate question whether the proposal complies 8339 for toll free. inspection at the Federal Reserve Bank with the standards of section 4 of the Sarah L. Stewart, indicated. The applications will also be BHC Act. available for inspection at the offices of Unless otherwise noted, comments Deputy General Counsel. the Board of Governors. Interested regarding the applications must be [FR Doc. 2015–00086 Filed 1–5–15; 4:15 pm] persons may express their views in received at the Reserve Bank indicated BILLING CODE P writing on the standards enumerated in or the offices of the Board of Governors the BHC Act (12 U.S.C. 1842(c)). If the not later than January 22, 2015. proposal also involves the acquisition of A. Federal Reserve Bank of San FEDERAL MINE SAFETY AND HEALTH a nonbanking company, the review also Francisco (Gerald C. Tsai, Director, REVIEW COMMISSION includes whether the acquisition of the Applications and Enforcement) 101 [BAC 6735–01] nonbanking company complies with the Market Street, San Francisco, California standards in section 4 of the BHC Act 94105–1579: Sunshine Act Notice (12 U.S.C. 1843). Unless otherwise 1. CITIC Group Corporation, Beijing, noted, nonbanking activities will be China; to retain CLSA Americas, LLC, January 5, 2015. conducted throughout the United States. New York, New York, and to continue TIME AND DATE: 10:00 a.m., Thursday, Unless otherwise noted, comments to engage in certain permissible January 15, 2015. regarding each of these applications nonbanking activities.

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Board of Governors of the Federal Reserve specific active ingredient(s) and docket sunscreen feedback letters issued before System, January 2, 2015. number(s) to which the comments the SIA was enacted are deemed to be Michael J. Lewandowski, apply. proposed sunscreen orders. Proposed Associate Secretary of the Board. FOR FURTHER INFORMATION CONTACT: sunscreen orders contain FDA’s [FR Doc. 2015–00032 Filed 1–6–15; 8:45 am] Kristen Hardin, Division of tentative determination that a BILLING CODE 6210–01–P Nonprescription Drug Products, Center nonprescription sunscreen active for Drug Evaluation and Research, Food ingredient or combination of and Drug Administration, 10903 New nonprescription sunscreen active DEPARTMENT OF HEALTH AND Hampshire Ave., Bldg. 22, Rm. 5491, ingredients: (A) Is GRASE and not HUMAN SERVICES Silver Spring, MD 20993–0002, 240– misbranded if marketed in accordance 402–4246. with such order; (B) is not GRASE and Food and Drug Administration SUPPLEMENTARY INFORMATION: is misbranded; or (C) is not GRASE and [Docket Nos. FDA–2005–N–0453, FDA– I. Background is misbranded because the data are 2003–N–0196, and FDA–2006–O–0314] insufficient to classify the active FDA is announcing the availability of ingredient or combination of ingredients Sunscreen Feedback Letters; Notice of six sunscreen feedback letters on its as GRASE and not misbranded, and Web site that contain the Agency’s Availability Under the Sunscreen additional data are necessary to allow Innovation Act tentative determinations and feedback FDA to determine otherwise. All of the on safety and effectiveness data AGENCY proposed sunscreen orders addressed in : Food and Drug Administration, submitted to demonstrate that certain HHS. active ingredients are GRASE and not this notice have been tentatively ACTION: Notice; request for comments. misbranded for use in OTC sunscreen classified under category (C), as drug products. We are taking this action described in the previous sentence. SUMMARY: The Food and Drug under the SIA (Pub. L. 113–195), Accordingly, additional data will be Administration (FDA or Agency) is needed to support a determination that announcing the availability of letters enacted November 26, 2014. Before the SIA was enacted, these sunscreen any or all of the active ingredients they containing FDA’s initial determinations address are GRASE and not misbranded. and feedback on safety and effectiveness feedback letters were issued to persons seeking OTC monograph status for data submitted to demonstrate that II. Sunscreen Feedback Letters Deemed nonprescription sunscreen active certain active ingredients are generally To Be SIA Proposed Orders ingredients using the Time and Extent recognized as safe and effective Application (TEA) process under FDA (GRASE) and not misbranded for use in The six feedback letters that are regulations in 21 CFR 330.14, and were over-the-counter (OTC) sunscreen drug deemed to be proposed orders under the also previously made available to the products (sunscreen feedback letters). SIA are identified in Table 1. They can public in the docket. We are taking this action under the be viewed electronically on FDA’s Web The SIA amended the Federal Food, site at http://www.fda.gov/Drugs/ Sunscreen Innovation Act (SIA). Drug, and Cosmetic Act (FD&C Act) to, ResourcesForYou/Consumers/ DATES: Submit either electronic or among other things, provide an BuyingUsingMedicineSafely/ written comments by February 23, 2015. alternative process for FDA to review UnderstandingOver-the- Sponsors may submit written requests the safety and effectiveness of for a meeting with FDA to discuss these nonprescription sunscreen active CounterMedicines/ucm239463.htm, proposed sunscreen orders by February ingredients. The SIA establishes new under the heading ‘‘FDA Regulatory 6, 2015. procedures for establishing the Action on Sunscreen.’’ Related ADDRESSES: Submit electronic conditions under which sunscreens documents, including safety and comments to http:// containing active ingredients that have efficacy data submissions, can be www.regulations.gov. Submit written been reviewed through the SIA process accessed in the corresponding dockets, comments to the Division of Dockets and found in a final sunscreen order to identified in Table 1, at http:// Management (HFA–305), Food and Drug be GRASE and not misbranded may be www.regulations.gov. The letters and Administration, 5630 Fishers Lane, Rm. marketed in the United States. associated information may also be 1061, Rockville, MD 20852. All Section 586C(b)(3) of the FD&C Act, viewed by visiting FDA’s Division of comments should clearly identify the as added by the SIA, provides that Dockets Management (see ADDRESSES).

TABLE 1—OTC SUNSCREEN FEEDBACK LETTERS DEEMED TO BE SIA PROPOSED ORDERS

Active ingredient Sponsor Date issued Docket No. 1

Bemotrizinol ...... Ciba Specialty Chemicals Corp ...... 11/13/2014 FDA–2005–N– 0453 Bisoctrizole ...... Ciba Specialty Chemicals Corp ...... 9/3/2014 FDA–2005–N– 0453 Drometrizole Trisiloxane ...... L’Oreal USA Products, Inc...... 8/29/2014 FDA–2003–N– 0196 Octyl Triazone ...... BASF AG ...... 6/23/2014 FDA–2003–N– 0196 Amiloxate ...... Symrise, Inc...... 2/25/2014 FDA–2003–N– Ego Pharmaceuticals Pty. Ltd...... 0196 Diethylhexyl Butamido Triazone ...... 3V Inc...... 2/21/2014 FDA–2006–O– 0314 1 Each letter was previously posted in the docket shown in Table 1 on the date that it was issued.

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Sponsors may submit a written The extension allows currently DATES: The 18-month extension of the request for a meeting with FDA to eligible TPS beneficiaries to retain TPS TPS designation of El Salvador is discuss any of these proposed sunscreen through September 9, 2016, so long as effective March 10, 2015, and will orders (see DATES). Submit meeting they otherwise continue to meet the remain in effect through September 9, requests electronically to eligibility requirements for TPS. The 2016. The 60-day re-registration period www.regulations.gov or in writing to the Secretary has determined that an runs from January 7, 2015 through Division of Dockets Management (see extension is warranted because the March 9, 2015March 9, 2015. (Note: It ADDRESSES), identified with the active conditions in El Salvador that prompted is important for re-registrants to timely ingredient name(s), the corresponding the TPS designation continue to be met. re-register during this 60-day re- docket number(s) shown in Table 1, and There continues to be a substantial, but registration period and not to wait until the heading ‘‘Sponsor Meeting temporary, disruption of living their EADs expire.) Request.’’ To facilitate your request, conditions in El Salvador resulting from FOR FURTHER INFORMATION CONTACT: please also send a copy to Kristen a series of earthquakes in 2001, and El • For further information on TPS, Hardin (see FOR FURTHER INFORMATION Salvador remains unable, temporarily, including guidance on the application CONTACT). to handle adequately the return of its process and additional information on III. Comments nationals. eligibility, please visit the USCIS TPS Web page at http://www.uscis.gov/tps. Interested persons may submit either Through this Notice, DHS also sets forth procedures necessary for nationals You can find specific information about electronic comments about the proposed this extension of El Salvador for TPS by orders discussed in this document to of El Salvador (or aliens having no nationality who last habitually resided selecting ‘‘TPS Designated Country: El http://www.regulations.gov or written Salvador’’ from the menu on the left of comments to the Division of Dockets in El Salvador) to re-register for TPS and to apply for renewal of their the TPS Web page. Management (see ADDRESSES). It is only • You can also contact the TPS Employment Authorization Documents necessary to send one set of comments. Operations Program Manager at the (EADs) with U.S. Citizenship and Identify comments with the appropriate Family and Status Branch, Service Immigration Services (USCIS). Re- docket number(s) and active ingredient Center Operations Directorate, U.S. registration is limited to persons who name(s) shown in Table 1 for the Citizenship and Immigration Services, have previously registered for TPS proposed order(s) that the comments Department of Homeland Security, 20 under the designation of El Salvador address. Comments on this notice may Massachusetts Avenue NW., and whose applications have been be viewed in the Division of Dockets Washington, DC 20529–2060; or by granted. Certain nationals of El Salvador Management between 9 a.m. and 4 p.m., phone at (202) 272–1533 (this is not a Monday through Friday, and will be (or aliens having no nationality who last toll-free number). Note: The phone posted to the appropriate docket(s) at habitually resided in El Salvador) who number provided here is solely for http://www.regulations.gov. have not previously applied for TPS questions regarding this TPS Notice. It may be eligible to apply under the late Dated: December 31, 2014. is not for individual case status initial registration provisions, if they inquires. Leslie Kux, meet: (1) At least one of the late initial • Associate Commissioner for Policy. Applicants seeking information filing criteria; and, (2) all TPS eligibility about the status of their individual cases [FR Doc. 2015–00002 Filed 1–6–15; 8:45 am] criteria (including continuous residence can check Case Status Online, available BILLING CODE 4164–01–P in the United States since February 13, at the USCIS Web site at http:// 2001, and continuous physical presence www.uscis.gov, or call the USCIS in the United States since March 9, National Customer Service Center at DEPARTMENT OF HOMELAND 2001). 800–375–5283 (TTY 800–767–1833). SECURITY For individuals who have already Service is available in English and been granted TPS under the El Salvador Spanish. U.S. Citizenship and Immigration designation, the 60-day re-registration • Further information will also be Services period runs from January 7, 2015 available at local USCIS offices upon [CIS No. 2550–14; DHS Docket No. USCIS– through March 9, 2015. USCIS will publication of this Notice. 2007–0028] issue new EADs with a September 9, SUPPLEMENTARY INFORMATION: 2016 expiration date to eligible El Table of Abbreviations RIN 1615–ZB36 Salvador TPS beneficiaries who timely re-register and apply for EADs under BIA—Board of Immigration Appeals Extension of the Designation of El this extension. Given the timeframes DHS—Department of Homeland Security Salvador for Temporary Protected involved with processing TPS re- DOS—Department of State Status registration applications, DHS EAD—Employment Authorization Document FNC—Final Nonconfirmation AGENCY: U.S. Citizenship and recognizes that not all re-registrants will Government—U.S. Government Immigration Services, Department of receive new EADs before their current IJ—Immigration Judge Homeland Security. EADs expire on March 9, 2015. INA—Immigration and Nationality Act ACTION: Notice. Accordingly, through this Notice, DHS OSC—U.S. Department of Justice, Office of automatically extends the validity of Special Counsel for Immigration-Related SUMMARY: Through this Notice, the EADs issued under the TPS designation Unfair Employment Practices Department of Homeland Security of El Salvador for 6 months, through SAVE—USCIS Systematic Alien Verification (DHS) announces that the Secretary of September 9, 2015, and explains how for Entitlements Program Secretary—Secretary of Homeland Security Homeland Security (Secretary) is TPS beneficiaries and their employers TNC—Tentative Nonconfirmation extending the designation of El Salvador may determine which EADs are TPS—Temporary Protected Status for Temporary Protected Status (TPS) automatically extended and their impact TTY—Text Telephone for 18 months from March 10, 2015, on Employment Eligibility Verification USCIS—U.S. Citizenship and Immigration through September 9, 2016. (Form I–9) and the E-Verify processes. Services

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What is Temporary Protected Status then grant TPS to eligible nationals of 2012 study by the El Salvador Ministry (TPS)? that foreign state (or aliens having no of Economy indicated the national • TPS is a temporary immigration nationality who last habitually resided housing deficit was at 446,000, a status granted to eligible nationals of a in that state). See INA section profound deficit for a country of 6.1 country designated for TPS under the 244(a)(1)(A), 8 U.S.C. 1254a(a)(1)(A). million people. This shortage would be At least 60 days before the expiration Immigration and Nationality Act (INA), exacerbated by the return of thousands of a country’s TPS designation or or to persons without nationality who of Salvadoran nationals currently extension, the Secretary, after last habitually resided in the designated residing in the United States under TPS. consultation with appropriate The National Water Institution country. Government agencies, must review the estimated that 40 to 50 percent of the • During the TPS designation period, conditions in a foreign state designated Salvadoran population lacked potable TPS beneficiaries are eligible to remain for TPS to determine whether the water access due to damages to the in the United States, may not be conditions for the TPS designation water and electrical systems in the removed, and are authorized to work continue to be met. See INA section aftermath of the 2001 earthquakes. Over and obtain EADs, so long as they 244(b)(3)(A), 8 U.S.C. 1254a(b)(3)(A). If 10 percent of El Salvador’s total continue to meet the requirements of the Secretary determines that a foreign population, mostly in rural areas, still TPS. state continues to meet the conditions lacks access to drinking water. Water • TPS beneficiaries may also be for TPS designation, the designation contamination and scarcity are of granted travel authorization as a matter may be extended for an additional particular concern in the San Salvador of discretion. period of 6, 12, or 18 months. See metropolitan area, threatening human • The granting of TPS does not result section 244(b)(3)(C) of the INA, 8 U.S.C. health and productivity, as well as in or lead to permanent resident status. 1254a(b)(3)(C). If the Secretary generating social conflict. According to • When the Secretary terminates a determines that the foreign state no the El Salvador Ministry of country’s TPS designation through a longer meets the conditions for TPS Environment, only 5 percent of El separate Federal Register notice, designation, the Secretary must Salvador’s surface water is considered beneficiaries return to the same terminate the designation. See INA treatable for drinking purposes. El immigration status they maintained section 244(b)(3)(B), 8 U.S.C. Salvador’s 59 principal wetland areas before TPS, if any (unless that status has 1254a(b)(3)(B). have been degraded and polluted by since expired or been terminated), or to solid waste, untreated waste water, any other lawfully obtained immigration Why is the Secretary extending the TPS agrochemicals, and unsustainable designation for El Salvador through status they received while registered for resource extraction practices. According September 9, 2016? TPS. to El Salvador’s public water utility, When was El Salvador designated for Over the past year, DHS and the over 278 million cubic meters of TPS? Department of State (DOS) have wastewater are produced annually. continued to review conditions in El Subsequent environmental disasters On March 9, 2001, the Attorney Salvador. Based on this review and after since the 2001 earthquakes have caused General designated El Salvador for TPS consulting with DOS, the Secretary has significant damage to infrastructure, based on an environmental disaster determined that an 18-month extension disrupting recovery efforts. In 2005, within that country, specifically the is warranted because the disruption in tropical storm Stan caused widespread devastation resulting from a series of living conditions in affected areas of El flooding, landslides, and destruction of earthquakes that occurred in 2001. See Salvador resulting from the homes and crops throughout the Designation of El Salvador Under environmental disaster that prompted country. A series of earthquakes in Temporary Protected Status, 66 FR the March 9, 2001 designation persists. western El Salvador in 2006 resulted in 14214 (Mar. 9, 2001). The Secretary last El Salvador was originally designated the temporary displacement of 2,000 announced an extension of TPS for El for Temporary Protected Status families. Storms in 2009 (Ida) and 2010 Salvador on May 30, 2013, based on her following a series of major earthquakes (Agatha) killed over 200 people, left 78 determination that the conditions and aftershocks in early 2001. The first, people unaccounted for, damaged over warranting the designation continued to on January 13, registered at 7.6 in 1,500 houses, and affected 120,000 be met. See Extension of the Designation magnitude on the standard seismic Salvadorans. Severe infrastructural of El Salvador for Temporary Protected scale; the second, on February 13, damage amounted to $343 million, of Status, 78 FR 32418 (May 30, 2013). measured 6.6 in magnitude. Together which more than half was related to This announcement is the tenth they killed over 1,000 people, caused roadways and bridges. In October 2011, extension of TPS for El Salvador since approximately 8,000 injuries, and tropical depression 12–E brought 10 the original designation in 2001. affected approximately 1.5 million days of heavy rain to El Salvador. The What authority does the Secretary of people. Of 262 municipalities in El storm caused an estimated $840 million Homeland Security have to extend the Salvador, 165 suffered serious damage in damage, flooding 20,000 homes, designation of El Salvador for TPS? in the first quake, while the second damaging 18 roads and 21 bridges, and quake hit the departments of La Paz, resulting in heavy agricultural losses. Section 244(b)(1) of the INA, 8 U.S.C. San Vicente, and Cuscatla´n the hardest. These three storms caused an estimated 1254a(b)(1), authorizes the Secretary, The earthquakes caused significant $1.3 billion in damage, a figure equal to after consultation with appropriate U.S. damage to homes, hospitals, schools, 5 percent of the country’s total 2012 Government agencies, to designate a and transportation systems. gross domestic product. In June 2013, foreign state (or part thereof) for TPS if The 2001 earthquakes damaged or Tropical Storm Barry caused flooding in the Secretary finds that certain country destroyed 276,594 housing units. A El Salvador, and in December 2013, the 1 conditions exist. The Secretary may eruption of the Chaparrastique volcano the INA describing functions transferred from the located in eastern El Salvador forced 1 As of March 1, 2003, in accordance with section Department of Justice to DHS ‘‘shall be deemed to 1517 of title XV of the Homeland Security Act of refer to the Secretary’’ of Homeland Security. See thousands of people within a 2-mile 2002, Public Law 107–296, 116 Stat. 2135, any 6 U.S.C. 557 (codifying the Homeland Security Act radius to evacuate their homes. These reference to the Attorney General in a provision of of 2002, tit. XV, section 1517). environmental disasters, as well as

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others not detailed herein, have caused no nationality who last habitually 765) is required if you are under the age substantial setbacks to infrastructure resided in El Salvador). See INA section of 14 or are 66 and older and applying recovery and development since the 244(b)(1)(B)(ii), 8 U.S.C. for late initial registration. 2001 earthquakes. 1254a(b)(1)(B)(ii). • If you are applying for re- El Salvador is currently experiencing • The designation of El Salvador for registration, you must pay the fee for the the effects of a severe regional drought TPS should be extended for an Application for Employment that is impacting food security. In additional 18-month period from March Authorization (Form I–765) only if you August 2014, the Famine Early Warning 10, 2015 through September 9, 2016. want an EAD, regardless of age. Systems Network reported that rainfall See INA section 244(b)(3)(C), 8 U.S.C. • You do not pay the fee for the deficits in eastern areas of El Salvador 1254a(b)(3)(C). Application for Employment began in late June 2014, and rainfall • There are approximately 204,000 Authorization (Form I–765) if you are accumulation in the affected areas is 50 current El Salvador TPS beneficiaries not requesting an EAD, regardless of to 75 percent below average. The who are expected to file for re- whether you are applying for late initial Famine Early Warning Systems Network registration and may be eligible to retain registration or re-registration. has also stated that ‘‘[t]his dryness is the their TPS under the extension. You must submit both completed worst in 10 years, including the El Nin˜ o application forms together. If you are year of 2009,’’ and ‘‘. . . losses incurred Notice of Extension of the TPS unable to pay for the Application for by subsistence farmers located in the Designation of El Salvador Employment Authorization (Form I– worst-affected areas are expected to By the authority vested in me as 765) and/or biometrics fee, you may exceed 70 percent.’’ In addition to the Secretary under INA section 244, 8 apply for a fee waiver by completing a effects of the drought, a leaf rust U.S.C. 1254a, I have determined, after Request for Fee Waiver (Form I–912) or epidemic has affected 74 percent of consultation with the appropriate submitting a personal letter requesting a coffee plants in El Salvador, causing a Government agencies, that the fee waiver, and by providing satisfactory loss of millions of dollars in coffee conditions that prompted the supporting documentation. For more production, as well as the loss of over designation of El Salvador for TPS in information on the application forms 300,000 jobs in that sector. 2001 continue to be met. See INA and fees for TPS, please visit the USCIS Economic losses from the earthquakes section 244(b)(3)(A), 8 U.S.C. TPS Web page at http://www.uscis.gov/ were reported to be as high as $2.6 1254a(b)(3)(A). On the basis of this tps. Fees for the Application for billion, almost 15 percent of El determination, I am extending the Temporary Protected Status (Form I– Salvador’s gross domestic product. El designation of El Salvador for TPS for 821), the Application for Employment Salvador’s economy continues to 18 months from March 10, 2015, Authorization (Form I–765), and experience significant challenges. Most through September 9, 2016. See INA biometric services are also described in analysts expect El Salvador’s gross sections 244(b)(2) and (b)(3), 8 U.S.C. 8 CFR 103.7(b)(1)(i). domestic product to grow 1.6 to 1.8 1254a(b)(2) and (b)(3). percent in 2014, approximately half the Biometric Services Fee rate of its regional neighbors. According Jeh Charles Johnson, Biometrics (such as fingerprints) are to a 2013 Social Panorama of Latin Secretary. required for all applicants 14 years of age or older. Those applicants must America Report issued by the European Required Application Forms and submit a biometric services fee. As Commission for Latin America and the Application Fees To Register or Re- previously stated, if you are unable to Caribbean, almost half of all register for TPS Salvadorans (45.3 percent) live in pay for the biometric services fee, you poverty. It is estimated that over a third To register or re-register for TPS based may apply for a fee waiver by of the country’s workforce is on the designation of El Salvador, an completing a Request for Fee Waiver underemployed or not able to find full- applicant must submit each of the (Form I–912) or by submitting a time work. In light of the highly following two applications: personal letter requesting a fee waiver, problematic economic situation, a large 1. Application for Temporary and providing satisfactory supporting influx of returning citizens at this time Protected Status (Form I–821). documentation. For more information • would overwhelm the labor market and If you are filing an application for on the biometric services fee, please the government’s fiscal ability to extend late initial registration, you must pay visit the USCIS Web site at http:// basic services to its citizens. the fee for the Application for www.uscis.gov. If necessary, you may be Based upon this review and after Temporary Protected Status (Form I– required to visit an Application Support consultation with appropriate 821). See 8 CFR 244.2(f)(2) and 244.6 Center to have your biometrics Government agencies, the Secretary and information on late initial filing on captured. the USCIS TPS Web page at http:// finds that: Re-filing a Re-registration TPS • The conditions that prompted the www.uscis.gov/tps. Application After Receiving a Denial of March 9, 2001 designation of El • If you are filing an application for a Fee Waiver Request Salvador for TPS continue to be met. re-registration, you do not need to pay See INA sections 244(b)(1)(B), (b)(3)(A) the fee for the Application for USCIS urges all re-registering and (C), 8 U.S.C. 1254a(b)(1)(B), Temporary Protected Status (Form I– applicants to file as soon as possible (b)(3)(A) and (C). 821). See 8 CFR 244.17. and within the 60-day re-registration period • There continues to be a substantial, 2. Application for Employment so that USCIS can process the but temporary, disruption in living Authorization (Form I–765). applications and issue EADs promptly. conditions in El Salvador as a result of • If you are applying for late initial Filing early will also allow those an environmental disaster. See INA registration and want an EAD, you must applicants who may receive denials of section 244(b)(1)(B)(i), 8 U.S.C. pay the fee for the Application for their fee waiver requests to have time to 1254a(b)(1)(B)(i). Employment Authorization (Form I– re-file their applications before the re- • El Salvador continues to be unable, 765) only if you are age 14 through 65. registration deadline. If, however, an temporarily, to handle adequately the No fee for the Application for applicant receives a denial of his or her return of its nationals (or aliens having Employment Authorization (Form I– fee waiver request and is unable to re-

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file by the re-registration deadline, the the USCIS TPS Web page at http:// individual’s TPS re-registration, if he or applicant may still re-file his or her www.uscis.gov/tps. Note: As previously she is eligible. If you choose to do this, application. This situation will be stated, although a re-registering TPS you would file the Application for reviewed to determine whether the beneficiary age 14 and older must pay Temporary Protected Status (Form I– applicant has established good cause for the biometric services fee (but not the 821) with the fee and the Application late re-registration. However, applicants initial TPS application fee) when filing for Employment Authorization (Form I– are urged to re-file within 45 days of the a TPS re-registration application, the 765) without the fee and without date on their USCIS fee waiver denial applicant may decide to wait to request requesting an EAD. notice, if at all possible. See INA section an EAD, and therefore not pay the Mailing Information 244(c)(3)(C); 8 U.S.C. 1254a(c)(3)(C); 8 Application for Employment CFR 244.17(c). For more information on Authorization (Form I–765) fee, until Mail your application for TPS to the good cause for late re-registration, visit after USCIS has approved the proper address in Table 1.

TABLE 1—MAILING ADDRESSES

If . . . Mail to . . .

Are applying for re-registration and you live in the following states/terri- U.S. Postal Service: U.S. Citizenship and Immigration Services, Attn: tories: TPS El Salvador, P.O. Box 8635, Chicago, IL 60680–8635. Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Non-U.S. Postal Delivery Service: U.S. Citizenship and Immigration Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Services, Attn: TPS El Salvador, 131 S. Dearborn—3rd Floor, Chi- Jersey, North Carolina, Ohio, Pennsylvania, Rhode Island, South cago, IL 60603–5517. Carolina, Vermont, Virginia, Washington DC, West Virginia. Are applying for re-registration and you live in the following states/terri- U.S. Postal Service: U.S. Citizenship and Immigration Services, Attn: tories: TPS El Salvador, P.O. Box 660864, Dallas, TX 75266. Alabama, Alaska, American Samoa, Arkansas, Colorado, Guam, Ha- Non-U.S. Postal Delivery Service: U.S. Citizenship and Immigration waii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Mis- Services, Attn: TPS El Salvador, 2501 S. State Highway, 121 Busi- souri, Montana, Nebraska, New Mexico, New York, North Dakota, ness Suite 400, Lewisville, TX 75067. Northern Mariana Islands, Oklahoma, Puerto Rico, South Dakota, Tennessee, Texas, Utah, Virgin Islands, Wisconsin, Wyoming. Are applying for re-registration and you live in the following states: ...... U.S. Postal Service: U.S. Citizenship and Immigration Services, Attn: TPS El Salvador, P.O. Box 21800, Phoenix, AZ 85036. Arizona, California, Nevada, Oregon, Washington ...... Non-U.S. Postal Delivery Service: U.S. Citizenship and Immigration Services, Attn: TPS El Salvador, 1820 E. Skyharbor Circle S, Suite 100, Phoenix, AZ 85034. Are applying for the first time as a late initial registration (this is for all U.S. Postal Service: U.S. Citizenship and Immigration Services, Attn: states/territories). TPS El Salvador, P.O. Box 8635, Chicago, IL 60680–8635, Non-US Postal Delivery Service: U.S. Citizenship and Immigration Services, Attn: TPS El Salvador, 131 S. Dearborn—3rd Floor, Chicago, IL 60603–5517.

If you were granted TPS by an E-Filing • Received an EAD under the last Immigration Judge (IJ) or the Board of If you are re-registering for TPS extension of TPS for El Salvador; and • Have an EAD with a marked Immigration Appeals (BIA), and you during the re-registration period and expiration date of March 9, 2015, wish to request an EAD, or are re- you do not need to submit any bearing the notation ‘‘A–12’’ or ‘‘C–19’’ registering for the first time following a supporting documents or evidence, you on the face of the card under grant of TPS by an IJ or the BIA, please are eligible to file your applications ‘‘Category.’’ mail your application to the appropriate electronically. For more information on Although this Notice automatically address in Table 1. Upon receiving a e-filing, please visit http:// extends your EAD through September 9, Notice of Action (Form I–797) from www.uscis.gov/e-filing. 2015, you must re-register timely for USCIS, please send an email to the Employment Authorization Document TPS in accordance with the procedures appropriate USCIS Service Center (EAD) described in this Notice if you would handling your application providing the like to maintain your TPS. receipt number and stating that you May I request an interim EAD at my submitted a re-registration and/or local USCIS office? When hired, what documentation may I request for an EAD based on an IJ/BIA No. USCIS will not issue interim show to my employer as proof of grant of TPS. Upon receiving a Notice of EADs to TPS applicants and re- employment authorization and identity Action (Form I–797) from USCIS, please registrants at local offices. when completing Employment send an email to TPSijgrant.vsc@ Eligibility Verification (Form I–9)? uscis.dhs.gov with the receipt number Am I eligible to receive an automatic 6- You can find a list of acceptable month extension of my current EAD and state that you submitted a re- document choices on the ‘‘Lists of through September 9, 2015? registration and/or request for an EAD Acceptable Documents’’ for based on an IJ/BIA grant of TPS. You Provided that you currently have TPS Employment Eligibility Verification can find detailed information on what under the designation of El Salvador, (Form I–9). You can find additional further information you need to email this Notice automatically extends your detailed information on the USCIS I–9 and the email addresses on the USCIS EAD by 6 months if you: Central Web page at http:// • TPS Web page at http://www.uscis.gov/ Are a national of El Salvador (or an www.uscis.gov/I-9Central. Employers tps. alien having no nationality who last are required to verify the identity and habitually resided in El Salvador); employment authorization of all new

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employees by using Employment authorization expiration dates in to Employees section of this Notice for Eligibility Verification (Form I–9). Section 1 and Section 2 of Employment important information about your rights Within 3 days of hire, an employee must Eligibility Verification (Form I–9) (see if your employer rejects lawful present proof of identity and the subsection titled ‘‘What corrections documentation, requires additional employment authorization to his or her should my current employer and I make documentation, or otherwise employer. to Employment Eligibility Verification discriminates against you based on your You may present any document from (Form I–9) if my EAD has been citizenship or immigration status, or List A (reflecting both your identity and automatically extended?’’ for further your national origin. employment authorization) or one information). In addition, you may also What happens after September 9, 2015, document from List B (reflecting show this Federal Register Notice to for purposes of employment identity) together with one document your employer to explain what to do for authorization? from List C (reflecting employment Employment Eligibility Verification authorization). You may present an (Form I–9). After September 9, 2015, employers acceptable receipt for List A, List B, or By September 9, 2015, the expiration may no longer accept the EADs that this List C documents as described in the date of the automatic extension, your Federal Register Notice automatically Form I–9 Instructions. An EAD is an employer must reverify your extended. Before that time, however, acceptable document under ‘‘List A.’’ employment authorization. At that time, USCIS will endeavor to issue new EADs Employers may not reject a document you must present any document from to eligible TPS re-registrants who based on a future expiration date. List A or any document from List C on request them. These new EADs will If your EAD has an expiration date of Employment Eligibility Verification have an expiration date of September 9, March 9, 2015, and states ‘‘A–12’’ or (Form I–9) to reverify employment 2016, and can be presented to your ‘‘C–19’’ under ‘‘Category,’’ it has been authorization, or an acceptable List A or employer for completion of extended automatically for 6 months by List C receipt described in the Form I– Employment Eligibility Verification virtue of this Federal Register Notice, 9 Instructions. Your employer should (Form I–9). Alternatively, you may and you may choose to present your complete either Section 3 of the choose to present any other legally EAD to your employer as proof of Employment Eligibility Verification acceptable document or combination of identity and employment authorization (Form I–9) originally completed for the documents listed on the Employment for Employment Eligibility Verification employee or, if this Section has already Eligibility Verification (Form I–9). (Form I–9) through September 9, 2015, been completed or if the version of How do my employer and I complete (see the subsection titled ‘‘How do my Employment Eligibility Verification Employment Eligibility Verification employer and I complete the (Form I–9) has expired (check the date (Form I–9) using an automatically Employment Eligibility Verification in the upper right-hand corner of the extended EAD for a new job? (Form I–9) using an automatically form), complete Section 3 of a new extended EAD for a new job?’’ for Employment Eligibility Verification When using an automatically further information). To minimize (Form I–9) using the most current extended EAD to complete Employment confusion over this extension at the version. Note that your employer may Eligibility Verification (Form I–9) for a time of hire, you may also show your not specify which List A or List C new job prior to September 9, 2015, you employer a copy of this Federal Register document employees must present, and and your employer should do the Notice confirming the automatic cannot reject an acceptable receipt. following: extension of employment authorization 1. For Section 1, you should: through September 9, 2015. As an Can my employer require that I produce a. Check ‘‘An alien authorized to alternative to presenting your any other documentation to prove my work;’’ automatically extended EAD, you may status, such as proof of my Salvadoran b. Write your alien number (USCIS choose to present any other acceptable citizenship? number or A-number) in the first space document from List A, or a combination No. When completing Employment (your EAD or other document from DHS of one selection from List B and one Eligibility Verification (Form I–9), will have your USCIS number or A- selection from List C. including re-verifying employment number printed on it; the USCIS authorization, employers must accept number is the same as your A-number What documentation may I show my any documentation that appears on the without the A prefix); and employer if I am already employed but ‘‘Lists of Acceptable Documents’’ for c. Write the automatically extended my current TPS-related EAD is set to Employment Eligibility Verification EAD expiration date (September 9, expire? (Form I–9) that reasonably appears to be 2015) in the second space. 2. For Section 2, employers should Even though EADs with an expiration genuine and that relates to you or an record the: date of March 9, 2015, that state ‘‘A–12’’ acceptable List A, List B, or List C a. Document title; or ‘‘C–19’’ under ‘‘Category’’ have been receipt. Employers may not request b. Document number; and automatically extended for 6 months by documentation that does not appear on c. Automatically extended EAD this Federal Register Notice, your the ‘‘Lists of Acceptable Documents.’’ expiration date (September 9, 2015). employer will need to ask you about Therefore, employers may not request By September 9, 2015, employers your continued employment proof of Salvadoran citizenship when must reverify the employee’s authorization once March 9, 2015 is completing Employment Eligibility employment authorization in Section 3 reached to meet its responsibilities for Verification (Form I–9) for new hires or of the Employment Eligibility Employment Eligibility Verification reverifying the employment Verification (Form I–9). (Form I–9). However, your employer authorization of current employees. If does not need a new document to presented with EADs that have been What corrections should my current reverify your employment authorization automatically extended, employers employer and I make to Employment until September 9, 2015, the expiration should accept such EADs as valid List Eligibility Verification (Form I–9) if my date of the automatic extension. Instead, A documents so long as the EADs EAD has been automatically extended? you and your employer must make reasonably appear to be genuine and to If you are an existing employee who corrections to the employment relate to the employee. Refer to the Note presented a TPS-related EAD that was

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valid when you first started your job, including those rules setting forth Employers may not terminate, but that EAD has now been reverification requirements. For general suspend, delay training, withhold pay, automatically extended, you and your questions about the employment lower pay or take any adverse action employer should correct your eligibility verification process, against an employee based on the previously completed Employment employers may call USCIS at 888–464– employee’s decision to contest a TNC or Eligibility Verification (Form I–9) as 4218 (TTY 877–875–6028) or email because the case is still pending with E- follows: USCIS at [email protected]. Calls and Verify. A Final Nonconfirmation (FNC) 1. For Section 1, you should: emails are accepted in English and case result is received when E-Verify a. Draw a line through the expiration many other languages. For questions cannot verify an employee’s date in the second space; about avoiding discrimination during employment eligibility. An employer b. Write ‘‘September 9, 2015’’ above the employment eligibility verification may terminate employment based on a the previous date; process, employers may also call the case result of FNC. Work-authorized c. Write ‘‘TPS Ext.’’ in the margin of U.S. Department of Justice, Office of employees who receive an FNC may call Section 1; and Special Counsel for Immigration-Related USCIS for assistance at 888–897–7781 d. Initial and date the correction in Unfair Employment Practices (OSC) (TTY 877–875–6028). An employee that the margin of Section 1. Employer Hotline at 800–255–8155 believes he or she was discriminated 2. For Section 2, employers should: (TTY 800–237–2515), which offers against by an employer in the E-Verify a. Draw a line through the expiration language interpretation in numerous process based on citizenship or date written in Section 2; languages, or email OSC at osccrt@ immigration status, or based on national b. Write ‘‘September 9, 2015’’ above usdoj.gov. origin, may contact OSC’s Worker the previous date; Information Hotline at 800–255–7688 Note to Employees c. Write ‘‘TPS Ext.’’ in the margin of (TTY 800–237–2515). Additional Section 2; and For general questions about the information about proper d. Initial and date the correction in employment eligibility verification nondiscriminatory Employment the margin of Section 2. process, employees may call USCIS at Eligibility Verification (Form I–9) and E- By September 9, 2015, when the 888–897–7781 (TTY 877–875–6028) or Verify procedures is available on the automatic extension of EADs expires, email at [email protected]. Calls are OSC Web site at http://www.justice.gov/ employers must reverify the employee’s accepted in English and many other crt/about/osc/ and the USCIS Web site employment authorization in Section 3. languages. Employees or applicants may at http://www.dhs.gov/E-verify. If I am an employer enrolled in E-Verify, also call the U.S. Department of Justice, Office of Special Counsel for Note Regarding Federal, State, and what do I do when I receive a ‘‘Work Immigration-Related Unfair Local Government Agencies (Such as Authorization Documents Expiration’’ Employment Practices (OSC) Worker Departments of Motor Vehicles) alert for an automatically extended Information Hotline at 800–255–7688 EAD? While Federal Government agencies (TTY 800–237–2515) for information must follow the guidelines laid out by If you are an employer who regarding employment discrimination the Federal Government, State and local participates in E-Verify and you have an based upon citizenship status, government agencies establish their own employee who is a TPS beneficiary who immigration status, or national origin, or rules and guidelines when granting provided a TPS-related EAD when he or for information regarding discrimination certain benefits. Each State may have she first started working for you, you related to Employment Eligibility different laws, requirements, and will receive a ‘‘Work Authorization Verification (Form I–9) and E-Verify. determinations about what documents Documents Expiring’’ case alert when The OSC Worker Information Hotline you need to provide to prove eligibility this EAD is about to expire. Usually, provides language interpretation in for certain benefits. Whether you are this message is an alert to complete numerous languages. applying for a Federal, State, or local Section 3 of the Employment Eligibility To comply with the law, employers government benefit, you may need to Verification (Form I–9) to reverify an must accept any document or provide the government agency with employee’s employment authorization. combination of documents from the documents that show you are a TPS For existing employees with TPS-related Lists of Acceptable Documents if the beneficiary and/or show you are EADs that have been automatically documentation reasonably appears to be authorized to work based on TPS. extended, employers should dismiss genuine and to relate to the employee, Examples are: this alert by clicking the red ‘‘X’’ in the or an acceptable List A, List B, or List (1) Your unexpired EAD that has been ‘‘dismiss alert’’ column and follow the C receipt described in the Employment automatically extended, or your EAD instructions above explaining how to Eligibility Verification (Form I–9) that has not expired; correct the Employment Eligibility Instructions. Employers may not require (2) A copy of this Federal Register Verification (Form I–9). By September 9, extra or additional documentation Notice if your EAD is automatically 2015, employment authorization must beyond what is required for extended under this Notice; be reverified in Section 3. Employers Employment Eligibility Verification (3) A copy of your Application for should never use E-Verify for (Form I–9) completion. Further, Temporary Protected Status Notice of reverification. employers participating in E-Verify who Action (Form I–797) for this re- receive an E-Verify case result of registration; Note to All Employers ‘‘Tentative Nonconfirmation’’ (TNC) (4) A copy of your past or current Employers are reminded that the laws must promptly inform employees of the Application for Temporary Protected requiring proper employment eligibility TNC and give such employees an Status Notice of Action (Form I–797), if verification and prohibiting unfair opportunity to contest the TNC. A TNC you received one from USCIS; and/or immigration-related employment case result means that the information (5) If there is an automatic extension practices remain in full force. This entered into E-Verify from Employment of work authorization, a copy of the fact Notice does not supersede or in any way Eligibility Verification (Form I–9) differs sheet from the USCIS TPS Web site that limit applicable employment from federal or state government provides information on the automatic verification rules and policy guidance, records. extension.

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Check with the government agency by which continuous bonds executed II. Modifications and Clarifications to regarding which document(s) the agency prior to or outside of the eBond test may the eBond Test will accept. You may also provide the be converted to eBonds by the surety A. Continuous Bonds Executed Prior to agency with a copy of this Federal and principal; a surety or principal’s or Outside the eBond Test May Be Register Notice. ability to terminate an eBond; the Converted to eBonds by the Surety and Some benefit-granting agencies use identification of the principal on an Principal the USCIS Systematic Alien Verification eBond by the filing identification for Entitlements Program (SAVE) to number; and an email address In the eBond test notice published in verify the current immigration status of correction. 79 FR 70881 (also referred to in this applicants for public benefits. If such an notice as the ‘‘original eBond test agency has denied your application DATES: The eBond test modifications notice’’), CBP indicated that continuous based solely or in part on a SAVE and clarifications set forth in this notice bonds executed prior to January 3, 2015, response, the agency must offer you the will go into effect January 7, 2015. will be accessible in the eBond system opportunity to appeal the decision in for administration purposes but will not accordance with the agency’s ADDRESSES: Comments and/or questions be subject to eBond test rules. Instead, procedures. If the agency has received concerning this notice or any aspect of pre-January 3, 2015 continuous bonds and acted upon or will act upon a SAVE the test may be submitted to CBP via will remain subject to the CBP bond verification and you do not believe the email to [email protected], with regulations in 19 CFR part 113, and response is correct, you may make an the subject line identifier reading riders of such bonds must be submitted InfoPass appointment for an in-person ‘‘Comment/Questions on eBond test.’’ to CBP in the format and manner detailed in 19 CFR part 113. Similarly, interview at a local USCIS office. FOR FURTHER INFORMATION CONTACT: For after the eBond test commences on Detailed information on how to make policy related questions, contact Kara corrections, make an appointment, or January 3, 2015, sureties and principals Welty, Chief, Debt Management Branch, submit a written request to correct who choose not to participate in the Revenue Division, Office of records under the Freedom of eBond test will still be able to submit Administration, at [email protected]. Information Act can be found at the bonds to CBP in the format and manner SAVE Web site at http://www.uscis.gov/ For technical questions, contact John detailed in 19 CFR part 113, and those save, then by choosing ‘‘How to Correct Everett, Entry Summary, Accounts, and bonds will be accessible in the eBond Your Records’’ from the menu on the Revenue Branch, ACE Business Office, system for administration purposes. right. Office of International Trade, at This notice announces a modification [email protected]. [FR Doc. 2015–00031 Filed 1–6–15; 8:45 am] to the eBond test to permit participating BILLING CODE 9111–97–P SUPPLEMENTARY INFORMATION: sureties/surety agents, acting on behalf of the sureties and principals, to convert Background pre-January 3, 2015 continuous bonds DEPARTMENT OF HOMELAND I. eBond Test and other continuous bonds executed SECURITY outside of the eBond test (collectively In a notice published in the Federal referred to hereinafter as ‘‘paper U.S. Customs and Border Protection Register (79 FR 70881) on November 28, continuous bonds’’) into eBonds subject 2014, U.S. Customs and Border to the rules set forth in this notice and eBond Test Modifications and Protection (CBP) announced a plan to the original eBond test notice. Under the Clarifications: Continuous Bond conduct a voluntary National Customs terms of the original eBond test notice, Executed Prior to or Outside the a participating surety or the surety’s eBond Test May Be Converted to an Automation Program (NCAP) eBond test. The eBond test, scheduled to agent may, via a CBP-approved eBond by the Surety and Principal, Electronic Data Interchange (EDI), Termination of an eBond, Identification deploy on January 3, 2015, provides for the transmission in Automated transmit limited changes to the terms of Principal on an eBond by Filing and conditions of an active continuous Identification Number, and Email Commercial Environment (ACE) of electronic bond contracts (eBonds) eBond that are contractually binding on Address Correction the principal(s) and surety(ies). At this between principals and sureties, with time, such changes include: AGENCY: U.S. Customs and Border CBP as the third-party beneficiary, for (1) Transmitting an addition eBond Protection, Department of Homeland the purpose of linking those eBonds to Security. rider (clarified below to be a User the transactions they are intended to Addition eBond rider); ACTION: General notice. secure (eBond system). The notice (2) Transmitting a deletion eBond invited public comment concerning the SUMMARY: This notice announces rider (clarified below to be a User test, described the eligibility, procedural modifications and clarifications to U.S. Deletion eBond rider); and documentation requirements for Customs and Border Protection’s (CBP’s) (3) Transmitting a reconciliation voluntary National Customs Automation voluntary participation in the test, and eBond rider; Program eBond test, scheduled to outlined the development and (4) Terminating a reconciliation deploy January 3, 2015. This test evaluation methodology to be used in eBond rider; provides for the transmission in the test. The eBond test terms and (5) Transmitting a U.S. Virgin Islands Automated Commercial Environment of conditions set forth in 79 FR 70881 eBond rider; and electronic bond contracts (eBonds) remain in effect for the duration of the (6) Terminating the eBond. between principals and sureties, with eBond test, subject to the modifications This notice announces a modification CBP as third-party beneficiary, for the and clarifications set forth in this notice to the eBond test whereby a purpose of linking those eBonds to the and any subsequent eBond test participating surety or the surety’s agent transactions they are intended to secure. modifications published in the Federal may also transmit, via EDI, the same The modifications and clarifications to Register. types of limited changes to the terms CBP’s eBond test concern: The method and conditions of an active paper

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continuous bond accessible in the eBond identification markers and CBP be considered to be the act of the eBond system. will not be collecting the name and identified principal. In accordance with 19 U.S.C. 1623, address of the principal or surety on the (2) User Deletion eBond rider. The and consistent with the Electronic eBond as this data will be available to principal(s) and surety(ies) agree that Signatures in Global and National CBP via other components of ACE. the CBP filing identification numbers Commerce Act, 15 U.S.C. 7001, et seq., In this document, CBP is clarifying transmitted with this eBond rider of the test participant surety/surety agent’s the eBond test terms and conditions to unincorporated units of the identified act of transmitting to CBP, via EDI, a reflect that the ‘‘CBP filing identification principal or trade or business names change to a paper continuous bond number’’ (see 19 CFR 24.5), and not a used by the identified principal in its (including, but not limited to, the six ‘‘name,’’ will be the method of business are deleted from the identified types of changes described above) identifying the principal on an eBond. eBond effective upon the date of constitutes a binding representation to Accordingly, there are several references approval of this eBond rider by the CBP that: (1) The transmitting surety/ to the use of eBond ‘‘names’’ that appropriate CBP bond approval official. surety agent has the authority to bind require clarification in the original C. Termination of an eBond both the surety(ies) and the principal(s) eBond test notice as follows: In the original eBond test notice, in to the conversion of the identified paper • At 79 FR 70883, in the section the section entitled ‘‘Termination of an continuous bond to an eBond, including entitled, ‘‘Terms and Conditions for eBond’’ located at 79 FR 70885, CBP but not limited to the modification of eBonds,’’ the sentence reading ‘‘[T]he prescribed the manner by which a the terms and conditions of the principal(s) and surety(ies) agree that surety may electronically terminate an identified paper continuous bond to the any charge against the eBond under any terms and conditions of the eBond test; eBond on which it is obligated. of the listed names is as though it was This notice announces a modification and (2) Pursuant to the transmitting made by the principal(s)’’ is clarified by surety/surety agent’s authority, both the to the eBond test termination changing the term ‘‘listed names’’ to procedures whereby a surety wishing to surety(ies) and the principal(s) intend to ‘‘listed CBP filing identification be bound by the converted eBond, terminate an eBond must notify the numbers.’’ principal(s) at the same time notice of including the terms and conditions for • At 79 FR 70885, in the section the eBond set forth in the eBond test. termination is sent to CBP. In addition, entitled ‘‘Continuous Bonds Executed a surety may request that a termination Furthermore, any transaction that Prior to eBond Test Will Be Accessible identifies or uses the converted eBond go into effect sooner than the prescribed in eBond System,’’ the sentence reading as security constitutes the re-affirmation 15 calendar days from the date of the ‘‘[T]he importer identification number of the principal responsible for the termination notice if the surety can and surety number will continue to be transaction that it intends to be bound establish, to the Director of the Revenue the primary identification markers used by the terms and conditions of the Division’s satisfaction, that good cause by CBP when verifying adequate bond identified or used converted eBond. exists for terminating the eBond in coverage for activities that require it,’’ is Once the surety(ies) and principal(s), lesser time. CBP is also modifying the clarified by changing the words acting through the transmitting surety/ eBond test to permit a principal to ‘‘importer identification number’’ to surety agent, have converted a paper terminate an eBond on which it is ‘‘CBP filing identification number’’ to continuous bond to an eBond, the obligated by means of emailing a eBond cannot be converted back into a reflect that the filing identification termination request to CBP. A principal paper continuous bond. number is not always associated with an may not terminate an eBond via EDI. importer. The modified eBond test terms and Because the elements of paper • continuous bonds are similar to eBonds, At 79 FR 70884, in the section conditions pertaining to termination of but not identical, certain elements of the entitled, ‘‘Terms and Conditions for an eBond are set forth below: paper continuous bond will not be used eBond Riders,’’ and subsections pertaining to ‘‘Addition’’ and Termination of an eBond by Surety/ as part of the converted eBond. These Surety Agent unused elements are: Broker Filer Code; ‘‘Deletion’’ eBond riders, CBP is Transaction Date; Port Code; Principal clarifying these terms and conditions by A surety may, with or without the Name and Physical Address; Principal changing the existing reference to consent of the principal(s), Signature; Principal Seal (or check box); ‘‘names’’ transmitted with these eBond electronically terminate an eBond on Mailing Address Requested by the riders to ‘‘CBP filing identification which it is obligated. The surety must Surety, Surety Name and Physical numbers’’ and further clarifying that notify the principal(s) of the termination Address; Surety Signature; Surety Seal these two types of eBond riders are at the same time the electronic notice of (or check box); Principal Name, Co- ‘‘user’’ riders. termination is transmitted to CBP. The Principal Name and Physical Address; The changes are set forth below: effective date of the termination must be Co-Principal Signature; Co-Principal (1) User Addition eBond rider. The stated in the electronic notice of Seal (or check box); Section III Names; principal(s) and surety(ies) agree that termination, and must be at least 15 Co-Surety Name and Physical Address; the CBP filing identification numbers calendar days from the date of the Co-Surety Signature; and Co-Surety Seal transmitted with this eBond rider electronic notice of termination, unless (or check box). identify unincorporated units of the the surety can show to the satisfaction identified principal or trade or business of the Director of the Revenue Division B. CBP Filing Identification Number as names used by the identified principal (RD) that good cause exists for Primary eBond Identification Marker in its business, that the identified eBond terminating the eBond in lesser time. A In several places in the original eBond covers its business, and that the request for a termination effective date test notice, CBP referenced the concept identified eBond covers any act done in that is less than 15 calendar days from of an eBond or eBond rider containing those names or under the CBP filing the date of the electronic notice of listed ‘‘names.’’ In that document, CBP identification numbers to the same termination must be emailed to also noted, at 79 FR 70885, that the extent as though done by the identified [email protected] in importer identification number and principal. The principal(s) and accordance with the email conventions surety number will be the primary surety(ies) agree that any such act shall described in CBP’s Policies and

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Procedures for eBond (FRN eBond Test DEPARTMENT OF HOUSING AND A. Overview of Information Collection Participants), which is available at URBAN DEVELOPMENT Title of Information Collection: http://www.cbp.gov/trade/trade- Procedure for Appealing Section 8 Rent community/programs-administration/ [Docket No. FR–5756–N–44] Adjustments. bonds/ebond. If an eBond is terminated, OMB Approval Number: 2502–0446. no new customs transactions may be 60-Day Notice of Proposed Information Type of Request: Extension. charged against the eBond. The surety, Collection: Procedures for Appealing Form Number: Owners will submit as well as the principal, remains liable Section 8 Rent Adjustments; OMB rent appeal on owner’s letterhead on a terminated eBond for obligations Collection: 2502–0446 providing a written explanation for the incurred prior to termination. appeal. AGENCY: Office of the Assistant Description of the need for the Termination of an eBond by a Principal Secretary for Housing-Federal Housing information and proposed use: Title II, Commissioner, HUD. A request by a principal to terminate section 221, of the National Housing Act ACTION: an eBond must be emailed to Notice. requires the Department of Housing and [email protected] in Urban Development (HUD) to establish SUMMARY: HUD is seeking approval from accordance with the email conventions rents for certain subsidized rental the Office of Management and Budget projects. Under this legislation, HUD is described in CBP’s Policies and (OMB) for the information collection charged with the responsibility of Procedures for eBond (FRN eBond Test described below. In accordance with the determining the method of rent Participants), which is available at Paperwork Reduction Act, HUD is adjustments and with facilitating these http://www.cbp.gov/trade/trade- requesting comment from all interested adjustments. Because rent adjustments community/programs-administration/ parties on the proposed collection of are considered benefits to project bonds/ebond. A principal may not information. The purpose of this notice owners, HUD must also provide some terminate an eBond via EDI. The is to allow for 60 days of public means for owners to appeal the termination will take effect on the date comment. decisions made by the Department or requested in the termination request if DATES: the Contract Administrator. This appeal that date is at least 15 calendar days Comments Due Date: March 9, 2015. process and the information collection from the date of the termination request. play an important role in preventing If no termination date is requested, the ADDRESSES: Interested persons are costly litigation and in ensuring the termination will take effect on the 15th invited to submit comments regarding accuracy of the overall rent adjustment calendar day following the date of the this proposal. Comments should refer to process. termination request. If an eBond is the proposal by name and/or OMB Respondents (i.e. affected public): terminated, no new customs Control Number and should be sent to: Owners of certain subsidized transactions may be charged against the Colette Pollard, Reports Management multifamily rental projects. eBond. The surety, as well as the Officer, QDAM, Department of Housing Estimated Number of Respondents: principal, remains liable on a and Urban Development, 451 7th Street 525. terminated eBond for obligations SW., Room 4176, Washington, DC Estimated Number of Responses: 525. incurred prior to termination. 20410–5000; telephone 202–402–3400 Frequency of Response: 1. (this is not a toll-free number) or email Average Hours per Response: 2. D. Correction of Email Address at [email protected] for a copy of Total Estimated Burdens: 1050. the proposed forms or other available B. Solicitation of Public Comment The original eBond Test notice information. Persons with hearing or contained an erroneous email address speech impairments may access this This notice is soliciting comments for the contact to whom technical number through TTY by calling the toll- from members of the public and affected questions may be sent. Technical free Federal Relay Service at (800) 877– parties concerning the collection of questions may be emailed to John 8339. information described in section A on Everett, Entry Summary, Accounts, and the following: FOR FURTHER INFORMATION CONTACT: Revenue Branch, ACE Business Office, (1) Whether the proposed collection Katherine A. Nzive, Director Program Office of International Trade, at the of information is necessary for the Administration Division, Office of Asset proper performance of the functions of following email address: john.r.everett@ Management and Portfolio Oversight, the agency, including whether the dhs.gov. 202–708–2654 Katherine.A.Nzive@ information will have practical utility; Dated: January 2, 2015. hud.gov Department of Housing and (2) The accuracy of the agency’s Urban Development, 451 7th Street SW., Brenda Smith, estimate of the burden of the proposed Washington, DC 20410. This is not a Assistant Commissioner, Office of collection of information; toll-free number. Persons with hearing International Trade. (3) Ways to enhance the quality, or speech impairments may access this [FR Doc. 2015–00029 Filed 1–6–15; 8:45 am] utility, and clarity of the information to number through TTY by calling the toll- BILLING CODE 9111–14–P be collected; and free Federal Relay Service at (800) 877– (4) Ways to minimize the burden of 8339. the collection of information on those Copies of available documents who are to respond; including through submitted to OMB may be obtained the use of appropriate automated from Ms. Pollard. collection techniques or other forms of SUPPLEMENTARY INFORMATION: This information technology, e.g., permitting notice informs the public that HUD is electronic submission of responses. seeking approval from OMB for the HUD encourages interested parties to information collection described in submit comment in response to these section A. questions.

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C. Authority hearing or speech impairments may HUD in monitoring grants to ensure that Section 3507 of the Paperwork access this number via TTY by calling grantees are complying with applicable Reduction Act of 1995, 44 U.S.C. 35. the Federal Information Relay Service at statutes and regulations and (800) 877–8339. Copies of available implementing activities as approved. Dated: December 31, 2014. documents submitted to OMB may be ICDBG applicants must submit a Laura M. Marin, obtained from Ms. Pollard complete application package which Associate General Deputy Assistant Secretary SUPPLEMENTARY INFORMATION: This includes an Application for Federal for Housing—Associate Deputy Federal notice informs the public that HUD is Assistance (SF–424), Applicant/ Housing Commissioner. seeking approval from OMB for the Recipient Disclosure/Update Report [FR Doc. 2015–00016 Filed 1–6–15; 8:45 am] information collection described in (HUD–2880), Cost Summary (HUD– BILLING CODE 4210–67–P section A. 4123), and Implementation Schedule The Federal Register notice that (HUD–4125). If the applicant has a solicited public comment on the waiver of the electronic submission DEPARTMENT OF HOUSING AND information collection for a period of 60 requirement and is submitting a paper URBAN DEVELOPMENT days was published on October 31, application, an Acknowledgement of [Docket No. FR–5752–N–116] 2014. Application Receipt (HUD–2993) must also be submitted. If the applicant is a A. Overview of Information Collection 30-Day Notice of Proposed Information tribal organization, a resolution from the Collection: Indian Community Title of Information Collection: Indian tribe stating that the tribal organization Development Block Grant Community Development Block Grant is submitting an application on behalf of Information Collection. the tribe must also be included in the AGENCY: Office of the Assistant OMB Approval Number: 2577–0191. application package. Type of Request: Extension of Secretary for Public and Indian ICDBG recipients are required to currently approved collection. Housing, PIH, HUD. submit a quarterly Federal Financial Form Number: HUD–4123, HUD– ACTION: Notice. Report (SF–425) that describes the use 4125. of grant funds drawn from the SUMMARY: HUD is seeking approval from Description of the need for the recipient’s line of credit. The reports are the Office of Management and Budget information and proposed use: Title I of used to monitor cash transfers to the (OMB) for the information collection the Housing and Community recipients and obtain expenditure data described below. In accordance with the Development Act of 1974 authorizes from the recipients. (24 CFR Paperwork Reduction Act, HUD is Indian Community Development Block 1003.501(16)) requesting comment from all interested Grants (ICDBG) and requires that grants parties on the proposed collection of be awarded annually on a competitive The regulations at 24 CFR part 85 information. The purpose of this notice basis. The purpose of the ICDBG require that grantees and sub-grantees is to allow for an additional 30 days of program is to develop viable Indian and ‘‘take all necessary affirmative steps to public comment. Alaska Native communities by creating assure that minority firms, women’s decent housing, suitable living business enterprises, and labor surplus DATES: Comments Due Date: March 9, area firms are used when possible’’ (24 2015. environments, and economic opportunities primarily for low- and CFR 85.36(e)). Consistent with these ADDRESSES: Interested persons are moderate-income persons. Consistent regulations, 24 CFR 1003.506(b) requires invited to submit comments regarding with this objective, not less than 70 that ICDBG grantees report on these this proposal. Comments should refer to percent of the expenditures are to activities on an annual basis, with the proposal by name and/or OMB benefit low and moderate-income Contract and Subcontract Activity Control Number and should be sent to: persons. Eligible applicants include Report being due to HUD on October 10 Colette Pollard, Reports Management Federally-recognized tribes, which of each year (HUD–2516). Officer, QDAM, Department of Housing includes Alaska Native communities, The regulations at 24 CFR 1003.506 and Urban Development, 451 7th Street and tribally authorized tribal instruct recipients to submit to HUD an SW., Room 4176, Washington, DC organizations. Eligible categories of Annual Status and Evaluation Report 20410–5000; telephone 202–402–3400 funding include housing rehabilitation, (ASER) that describes the progress made (this is not a toll-free number) or email land acquisition to support new in completing approved activities with at [email protected] for a copy of housing, homeownership assistance, a listing of work to be completed; a the proposed forms or other available public facilities and improvements, breakdown of funds expended; and information. Persons with hearing or economic development, and when the project is completed, a speech impairments may access this microenterprise programs. For a program evaluation expressing the number through TTY by calling the toll- complete description of eligible effectiveness of the project in meeting free Federal Relay Service at (800) 877– activities, please refer to 24 CFR 1003, community development needs. The 8339. subpart C. ASER is due by November 15 each year FOR FURTHER INFORMATION CONTACT: The ICDBG program regulations are at and at grant closeout. Colette Pollard, Reports Management 24 CFR part 1003. The ICDBG program The information collected will allow Officer, QDAM, Department of Housing requires eligible applicants to submit HUD to accurately audit the program. and Urban Development, 451 7th Street information to enable HUD to select the Respondents: Federally recognized SW., Washington, DC 20410; telephone best projects for funding during annual Native American Tribes, Alaska Native 202–402–3400; email at competitions. Additionally, the communities and corporations, and [email protected]. Persons with information submitted is essential for tribal organizations

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Burden hour Hourly cost Information collection Number of Frequency Responses per re- Annual bur- per re- Annual cost respondents of response per annum sponse den hours sponse

Grant Application (Includes SF–424, HUD–2880, HUD–2993, HUD–4123, HUD–4125) ...... 240 1 240 30 7,200 $19.23 $138,461.54 Federal Financial Report (SF–425) ..... 100 4 400 .5 200 19.23 3,846.15 Contract and Subcontract Activity Re- port (HUD–2516) ...... 100 1 100 1 100 19.23 1,923.08 Annual Status and Evaluation Report (ASER) ...... 100 1 100 4 400 19.23 7,692.31

Total ...... 840 7,900 151,923.08

B. Solicitation of Public Comment Executive Order titled ‘‘Establishment of be posted to www.cops.usdoj.gov/ This notice is soliciting comments the President’s Task Force on 21st policingtaskforce. from members of the public and affected Century Policing’’ establishing the Availability of Meeting Materials: The parties concerning the collection of President’s Task Force on 21st Century agenda and other materials in support of information described in section A on Policing (‘‘Task Force’’). The Task Force the teleconference will be available on the following: seeks to identify best practices and the Task Force Web site at (1) Whether the proposed collection make recommendations to the President www.cops.usdoj.gov/policingtaskforce of information is necessary for the on how policing practices can promote in advance of the teleconference. proper performance of the functions of effective crime reduction while building the agency, including whether the public trust and examine, among other Melanca Clark, information will have practical utility; issues, how to foster strong, Chief of Staff. (2) The accuracy of the agency’s collaborative relationships between [FR Doc. 2014–30978 Filed 1–6–15; 8:45 am] estimate of the burden of the proposed local law enforcement and the BILLING CODE 4410–AT–P collection of information; communities they protect. The Task (3) Ways to enhance the quality, Force will be holding its first public utility, and clarity of the information to teleconference. be collected; and The meeting agenda is as follows: NATIONAL SCIENCE FOUNDATION (4) Ways to minimize the burden of Call to Order the collection of information on those Review of submitted Notice of Permits Issued under the who are to respond; including through recommendations Antarctic Conservation Act of 1978 the use of appropriate automated Discussion collection techniques or other forms of DATES: The teleconference will be held AGENCY: National Science Foundation. Wednesday, January 21, 2014 from 5:00 information technology, e.g., permitting ACTION: Notice of permits issued under electronic submission of responses. p.m. to 7:00 p.m. Eastern Time. An opportunity will be provided to the the Antarctic Conservation of 1978, HUD encourages interested parties to Public Law 95–541. submit comment in response to these public to comment. questions. Accommodations requests: To request accommodation of a disability, please SUMMARY: The National Science Authority: contact Jessica Drake at 202–457–7771, Foundation (NSF) is required to publish Section 3507 of the Paperwork preferably at least 10 days prior to the notice of permits issued under the Reduction Act of 1995, 44 U.S.C. 35. meeting, to give DOJ as much time as Antarctic Conservation Act of 1978. Dated: December 30, 2014. possible to process your request. This is the required notice. Colette Pollard, ADDRESSES: The meeting will be held by FOR FURTHER INFORMATION CONTACT: Li Department Reports Management Officer, teleconference only. The teleconference Ling Hamady, ACA Permit Officer, Office of the Chief Information Officer. number will be posted in advance of the Division of Polar Programs, Rm. 755, [FR Doc. 2015–00018 Filed 1–6–15; 8:45 am] teleconference at the Task Force Web National Science Foundation, 4201 BILLING CODE 4210–67–P site at www.cops.usdoj.gov/ Wilson Boulevard, Arlington, VA 22230. policingtaskforce. Or by email: [email protected]. FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF JUSTICE SUPPLEMENTARY INFORMATION: On Director, Ronald L. Davis, 202–514– November 19, 2014 the National Science 4229 or [email protected]. Community Oriented Policing Foundation published a notice in the Address all comments concerning this Services: Public Meetings With the Federal Register of a permit application notice to [email protected]. President’s Task Force on 21st received. The permit was issued on Century Policing Discussing SUPPLEMENTARY INFORMATION: December 30, 2014 to: Recommendations on Topics Relating Electronic Access and Filing Addresses to Policing Dr. Joseph A. Covi .... Permit No. 2015–015. The Task Force is interested in AGENCY: Community Oriented Policing receiving written comments including Services, Justice. proposed recommendations from Nadene G. Kennedy, Polar Coordination Specialist, Division of ACTION: Notice of meeting. individuals, groups, advocacy organizations, and professional Polar Programs. SUMMARY: On December 18, 2014, communities. Additional information [FR Doc. 2015–00003 Filed 1–6–15; 8:45 am] President Barack Obama signed an on how to provide your comments will BILLING CODE 7555–01–P

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NUCLEAR REGULATORY White Flint North, 11555 Rockville changes to its Physical Security Plan COMMISSION Pike, Rockville, Maryland 20852. that would require a system of FOR FURTHER INFORMATION CONTACT: continuous communications between [Docket Nos. 50–305 and 72–64; NRC–2014– the alarm stations and the shift 0280] William Huffman, Office of Nuclear Reactor Regulation, U.S. Nuclear manager/Certified Fuel Handler (CFH) Dominion Energy Kewaunee, Inc.; Regulatory Commission, Washington DC instead of the control room. Kewaunee Power Station 20555–0001; telephone: 301–415–2046; III. Discussion email: [email protected]. The intent of 10 CFR 73.55(j)(4)(ii) is AGENCY: Nuclear Regulatory SUPPLEMENTARY INFORMATION: Commission. to maintain continuous effective I. Background ACTION: Exemption; issuance. communication capability between The licensee, DEK, is the holder of security alarm stations and operations SUMMARY: The U.S. Nuclear Regulatory Renewed Facility License No. DPR–43. staff with shift command function Commission (NRC) is issuing an The license provides, among other responsibility to ensure any necessary exemption in response to a June 10, things, that the facility is subject to all coordination during security events or 2013, request from Dominion Energy rules, regulations, and orders of the NRC other emergencies can be accomplished Kewaunee, Inc. (DEK or the licensee), now or hereafter in effect. at all times. The regulation requires from certain power reactor security The facility consists of a permanently maintaining a system for continuous requirements. The exemption would shutdown and defueled pressurized communications between the security remove the requirement that continuous water reactor and a general licensed alarm stations and the control room for communication be maintained between independent spent fuel storage an operating reactor based on the the security alarm stations and the installation (ISFSI) located in Kewaunee presumption that the shift command control room at Kewaunee Power County, Wisconsin. function resides in the control room. Station (KPS). The licensee has By letter dated February 25, 2013 The control room at an operating reactor committed to modify its Physical (ADAMS Accession No. ML13058A065), contains the controls and Security Plan to require continuous and in accordance with § 50.82(a)(1)(i) instrumentation necessary for complete communication between the security of Title 10 of the Code of Federal supervision and response needed to alarm stations and the shift manager. Regulations (10 CFR), DEK submitted to ensure safe operation of the reactor and support systems during normal, off- DATES: January 7, 2015. the NRC a certification indicating it would permanently cease power normal, and accident conditions and, ADDRESSES: Please refer to Docket ID operations at KPS on May 7, 2013. On therefore, is the location of the shift NRC–2014–0280 when contacting the May 7, 2013, DEK permanently ceased command function. Following NRC about the availability of power operation at KPS. By letter dated certification of permanent shutdown information regarding this document. May 14, 2013 (ADAMS Accession No. and removal of fuel from the reactor, You may obtain publicly-available ML13135A209), and in accordance with operation of the reactor is no longer information related to this document 10 CFR 50.82(a)(1)(ii), DEK submitted to permitted. The control room at a using any of the following methods: permanently shutdown and defueled • the NRC a certification that the reactor Federal Rulemaking Web site: Go to vessel at KPS was permanently reactor does not perform the same http://www.regulations.gov and search defueled. function as required for an operating for Docket ID NRC–2014–0280. Address reactor. There are no longer any safety questions about NRC dockets to Carol II. Request/Action related systems or processes that are Gallagher; telephone: 301–287–3422; In accordance with 10 CFR 73.5, controlled from the control room. The email: [email protected]. For ‘‘Specific exemptions,’’ the licensee has, primary functions of the control room at technical questions, contact the by letter dated June 10, 2013 (ADAMS a permanently shutdown plant is to individual listed in the FOR FURTHER Accession No. ML13165A343), provide a central location from where INFORMATION CONTACT section of this requested an exemption from 10 CFR the shift command function can be document. 73.55(j)(4)(ii), which otherwise requires conveniently performed due to existing • NRC’s Agencywide Documents continuous communications between communication equipment, office Access and Management System security alarm stations and the control computer equipment, and ready access (ADAMS): You may obtain publicly- room. Portions of the letter dated June to reference material. The control room available documents online in the 10, 2013, contain safeguards also provides a central location from ADAMS Public Documents collection at information and, accordingly, have been which emergency response activities are http://www.nrc.gov/reading-rm/ withheld from public disclosure. The coordinated. However, the control room adams.html. To begin the search, select licensee is requesting exemption from does not always need to be the location ‘‘ADAMS Public Documents’’ and then the continuous communications of the shift command function since select ‘‘Begin Web-based ADAMS requirements between the control room most remaining system processes at a Search.’’ For problems with ADAMS, and the security alarm stations. permanently shutdown and defueled please contact the NRC’s Public The exemption request relates solely reactor are controlled locally. At KPS, Document Room (PDR) reference staff at to removing the control room from the the shift manager/CFH has 1–800–397–4209, 301–415–4737, or by requirements specified in the responsibility for the shift command email to [email protected]. The regulations that direct the licensee to function. The shift manager/CFH is the ADAMS accession number for each establish a system for continuous senior on-shift licensee representative document referenced in this document communications between the control and decision-maker and is responsible (if that document is available in room and the security alarm stations. for the overall safety of the permanently ADAMS) is provided the first time that The licensee will have a system for shutdown and defueled facility and for a document is referenced. continuous communications between directing the response to abnormal • NRC’s PDR: You may examine and the shift manager and the alarm stations. situations and emergencies. The purchase copies of public documents at As specified in its June 10, 2013, requested exemption would provide the the NRC’s PDR, Room O1–F21, One application, DEK will implement KPS shift manager/CFH the flexibility to

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leave the control room to perform Commission determines are authorized radiological sabotage. Therefore, managerial and supervisory activities by law. The NRC staff has determined removing the requirement to have throughout the plant while retaining the that granting of the licensee’s proposed continuous communication between the command function responsibility. While exemption will not result in a violation security alarm stations and the control the shift command function is normally of the Atomic Energy Act of 1954, as room will not endanger life or property accomplished from the control room in amended, or other laws. Therefore, the or the common defense and security. accordance with applicable KPS exemption is authorized by law. C. Is Otherwise in the Public Interest procedures, it can also be accomplished B. Will Not Endanger Life or Property or anywhere in the facility provided an The licensee is implementing changes the Common Defense and Security effective means of continuous to its Physical Security Plan to establish communication with the shift manager/ Removing the requirement to have a a system of continuous communication CFH is maintained. Because KPS is continuous communication system between the security alarm stations and permanently shutdown and defueled, between the security alarm stations and the shift manager/CFH that is not the ability to leave the control room may the control room will not endanger life dependent on the shift manager’s benefit the shift manager/CFH’s or property or the common defense and location. By granting DEK’s proposed understanding of facility conditions as security for the reasons discussed exemption to remove the requirement well as enhance his assessment and below. for a continuous communication system response to any abnormal situation or The shift manager/CFH is the senior between the security alarm stations and emergency conditions. Although the on-shift licensee representative, is the control room, the shift manager/CFH control room will remain the physical responsible for the shift command can roam around the facility in an command center, the exemption will function, and directs the action of the oversight role and obtain first-hand allow the location of the KPS command operations staff during both normal and information of facility conditions and function to be wherever the shift emergency conditions. Therefore, the status while still maintaining manager/CFH is located. Being absent shift manager/CFH is the appropriate continuous communication with the from the control room will not relieve individual to have continuous alarm stations. The NRC staff has the shift manager/CFH of the communication capability with the concluded that there would be no responsibility for the shift command alarm stations. The exemption would decrease in the level of safety by function. The exemption will allow DEK not reduce the measures in place to granting this exemption and that the to establish and maintain continuous protect against radiological sabotage. In capability to observe conditions directly communication capability with the shift addition, the NRC staff has determined serves the public interest by assuring manager/CFH, regardless of his location. that the exemption will not reduce the that the shift manager/CFH has the best The NRC staff assessed the method overall effectiveness of the KPS Physical possible information needed to make proposed by the licensee to maintain Security Plan, Training and decisions or to communicate to the continuous communications with the Qualification Plan, or Safeguards alarm stations or to offsite entities. shift manager/CFH in a safety Contingency Plan. Maintaining a system Accordingly, the NRC staff concludes evaluation report dated April 14, 2014 of continuous communication between that exempting DEK from the (the NRC staff’s safety evaluation report the alarm stations and the shift requirement for a continuous contains safeguards information and is, manager/CFH rather than the control communication system between the therefore, not publicly available). The room will provide the shift manager security alarm stations and the control NRC staff determined that the proposed with the flexibility to leave the control room is in the public interest, provided method of maintaining continuous room and respond to other locations the licensee maintains continuous communication with the shift manager/ onsite, as necessary, to conduct communication capability between the CFH is consistent with the functional appropriate management oversight. The alarm stations and the shift manager/ requirement of the regulation for NRC staff has determined that CFH. maintaining communication with the maintaining continuous communication D. Environmental Considerations control room. The NRC staff has capability with the shift manager/CFH, concluded that upon implementing a whether in the control room or The NRC’s approval of the exemption system for continuous communications elsewhere, does not significantly change to security requirements belongs to a between the alarm stations and the shift the current process that ensures that any category of actions that the Commission, manager/CFH, as documented in the necessary coordination during security by rule or regulation, has declared to be licensee’s Physical Security Plan, the events or other emergencies can be a categorical exclusion, after first requested exemption to 10 CFR accomplished at all times. Continuous finding that the category of actions does 73.55(j)(4)(ii) will meet the intent of the communication capability is essentially not individually or cumulatively have a regulation, regardless of the location of unchanged (other than the location of significant effect on the human the shift manager/CFH. the shift manager/CFH when the environment. Specifically the Pursuant to 10 CFR 73.5, the communications are initiated). exemption is categorically excluded Commission may, upon application of Therefore, the underlying purpose of from further analysis under 10 CFR any interested person or upon its own 10 CFR 73.55(j)(4)(ii) will continue to be 51.22(c)(25). initiative, grant such exemptions from met. The exemption does not reduce the Under 10 CFR 51.22(c)(25), granting the requirements of 10 CFR part 73 as overall effectiveness of the Physical of an exemption from the requirements it determines are authorized by law and Security Plan and has no adverse impact of any regulation of Chapter I to 10 CFR will not endanger life or property or the on DEK’s ability to physically secure the is a categorical exclusion provided that common defense and security, and are site or protect special nuclear material (i) there is no significant hazards otherwise in the public interest. at KPS, and therefore would not have an consideration; (ii) there is no significant effect on the common defense and change in the types or significant A. Authorized by Law security. The NRC staff has concluded increase in the amounts of any effluents In accordance with 10 CFR 73.5, the that the exemption would not reduce that may be released offsite; (iii) there is Commission may grant exemptions from the effectiveness of security measures no significant increase in individual or the regulations in 10 CFR part 73 as the currently in place to protect against cumulative public or occupational

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radiation exposure; (iv) there is no a system of continuous communication I. Introduction significant construction impact; (v) capability with the control room, On December 29, 2014, the United there is no significant increase in the provided that DEK maintains a system States Postal Service (Postal Service) potential for or consequences from for continuous communication filed with the Commission, pursuant to radiological accidents; and (vi) the capability with the shift manager/CFH 39 U.S.C. 3652, its Annual Compliance requirements from which an exemption consistent with the method described in Report (ACR) for fiscal year (FY) 2014.1 is sought involve: safeguard plans, and its submittal dated June 10, 2013. This Section 3652 requires submission of materials control and accounting exemption is effective when the system data and information on the costs, inventory scheduling requirements; or for continuous communication between revenues, rates, and quality of service involve other requirements of an the alarm stations and the shift associated with postal products within administrative, managerial, or manager/CFH is documented in DEK’s 90 days of the closing of each fiscal organizational nature. Physical Security Plan and functionally year. In conformance with other The Director, Division of Operating implemented. statutory provisions and Commission Reactor Licensing, Office of Nuclear Dated at Rockville, Maryland, this 29th day rules, the ACR includes the Postal Reactor Regulation, has determined that of December 2014. Service’s FY 2014 Comprehensive approval of the exemption request For the Nuclear Regulatory Commission. Statement, its FY 2014 annual report to involves no significant hazards George A. Wilson Jr., the Secretary of the Treasury on the consideration because removing the Competitive Products Fund, and certain requirement for a continuous Acting Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor related Competitive Products Fund communications system between the Regulation. material. See respectively, 39 U.S.C. security alarm stations and the control [FR Doc. 2015–00027 Filed 1–6–15; 8:45 am] 3652(g), 39 U.S.C. 2011(i), and 39 CFR room at KPS does not (1) involve a BILLING CODE 7590–01–P 3060.20–23. In line with past practice, significant increase in the probability or some of the material in the FY 2014 consequences of an accident previously ACR appears in non-public annexes. evaluated; or (2) create the possibility of POSTAL REGULATORY COMMISSION The filing begins a review process that a new or different kind of accident from results in an Annual Compliance any accident previously evaluated; or [Docket No. ACR2014; Order No. 2313] Determination (ACD) issued by the (3) involve a significant reduction in a Commission to determine whether margin of safety. The exempted security FY 2014 Annual Compliance Report Postal Service products offered during regulation is unrelated to the operation AGENCY: Postal Regulatory Commission. FY 2014 are in compliance with of KPS. Accordingly, there is no applicable title 39 requirements. significant change in the types or ACTION: Notice. II. Overview of the Postal Service’s FY significant increase in the amounts of SUMMARY: The Postal Service has filed 2014 ACR any effluents that may be released an Annual Compliance Report on the offsite; and no significant increase in costs, revenues, rates, and quality of Contents of the filing. The Postal individual or cumulative public or service associated with its products in Service’s FY 2014 ACR consists of a 51- occupational radiation exposure. The fiscal year 2014. Within 90 days, the page narrative; extensive additional exempted regulation is not associated Commission must evaluate that material appended as separate folders with construction, so there is no information and issue its determination and identified in Attachment One; and significant construction impact. The as to whether rates were in compliance an application for non-public treatment exempted regulation does not concern with title 39, chapter 36, and whether of certain materials, along with the source term (i.e., potential amount service standards in effect were met. To supporting rationale, filed as of radiation in an accident), nor assist in this, the Commission seeks Attachment Two. The filing also mitigation. Therefore, there is no public comments on the Postal Service’s includes the Comprehensive significant increase in the potential for, 2 Annual Compliance Report. Statement, Report to the Secretary of or consequences of, a radiological the Treasury, and information on the accident. The requirement for a DATES: Comments are due: February 2, 2015. Reply Comments are due: Competitive Products Fund filed in continuous communication system response to Commission rules. This February 13, 2015. between the security alarm stations and material has been filed electronically the control room may be viewed as ADDRESSES: Submit comments with the Commission, and some also involving either safeguards or electronically via the Commission’s has been filed in hard-copy form. managerial matters. Filing Online system at http:// Scope of filing. The material Therefore, pursuant to 10 CFR www.prc.gov. Those who cannot submit appended to the narrative consists of: 51.22(b) and 51.22(c)(25), no comments electronically should contact (1) Domestic product costing material environmental impact statement or the person identified in the FOR FURTHER filed on an annual basis summarized in environmental assessment need be INFORMATION CONTACT section by the Cost and Revenue Analysis (CRA); prepared in connection with the telephone for advice on filing (2) comparable international costing approval of this exemption request. alternatives. material summarized in the IV. Conclusions FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 1 United States Postal Service FY 2014 Annual Accordingly, the Commission has 202–789–6820. Compliance Report, December 29, 2014 (FY 2014 determined that, pursuant to 10 CFR ACR). Public portions of the Postal Service’s filing SUPPLEMENTARY INFORMATION: are available on the Commission’s Web site at 73.5, the exemption is authorized by http://www.prc.gov. law and will not endanger life or Table of Contents 2 In years prior to 2013, the Commission reviewed property or the common defense and I. Introduction the Postal Service’s reports prepared pursuant to 39 U.S.C. 2803 and 39 U.S.C. 2804 (filed as the security, and is otherwise in the public II. Overview of the Postal Service’s FY2014 interest. Therefore, the Commission Comprehensive Statement by the Postal Service) in ACR its Annual Compliance Determination. However, as hereby grants DEK exemption from the III. Procedural Steps it did last year, the Commission intends to review requirement of 10 CFR 73.55(j)(4)(ii) for IV. Ordering Paragraphs these reports separately.

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International Cost and Revenue information on market dominant tests conducted during FY 2014, and Analysis (ICRA); (3) worksharing-related negotiated service agreements (NSAs). nonpostal services. Id. at 48–49. cost studies; and (4) billing determinant Id. at 37–38. III. Procedural Steps information for both domestic and Forthcoming Information. The Postal international mail. FY 2014 ACR at 2. Service represents that due to the Statutory requirements. Section 3653 Inclusion of these four data sets is unavailability of staff during the holiday of title 39 requires the Commission to consistent with the Postal Service’s past season, it was unable to include certain provide interested persons with an ACR practices. As with past ACRs, the information in this filing. It states that opportunity to comment on the ACR Postal Service has split certain materials the following information will be filed and to appoint an officer of the into public and non-public versions. Id. with the Commission in ‘‘early Commission (Public Representative) to at 2–3. January’’: represent the interests of the general ‘‘Roadmap’’ document. A roadmap to • A description of all operational public. The Commission hereby solicits the FY 2014 ACR appears as Library changes designed to reduce costs for public comment on the Postal Service’s Reference USPS–FY14–9. This Standard Mail Flats in FY 2014 as FY 2014 ACR and on whether any rates document provides brief descriptions of required by the Commission in the FY or fees in effect during FY 2014 (for the materials submitted, as well as the 2010 ACD. Id. at 19 n.7. products individually or collectively) flow of inputs and outputs among them; • A description of costing were not in compliance with applicable a discussion of differences in methodology or measurement provisions of chapter 36 of title 39 (or methodology relative to Commission improvements made to the Standard regulations promulgated thereunder). methodologies in last year’s ACD; and a Mail Flats product in FY 2014 and an Commenters addressing market list of special studies and a discussion estimate of the financial effects of such dominant products are referred in of obsolescence, as required by changes as required by the Commission particular to the applicable Commission rule 3050.12. Id. at 3. in the FY 2010 ACD. Id. requirements (39 U.S.C. 3622(d) and (e) Methodology. The Postal Service • A statement summarizing the and 3626); objectives (39 U.S.C. states that it has adhered to the historical and current fiscal year 3622(b)); and factors (39 U.S.C. 3622(c)). methodologies historically used by the subsidy of the Standard Mail Flats Commenters addressing competitive Commission subject to changes product and an estimated timeline for products are referred to 39 U.S.C. 3633. identified and discussed in a separate phasing out that subsidy as required by The Commission also invites public section of the roadmap document and in the Commission in the FY 2010 ACD. comment on the cost coverage matters prefaces accompanying the appended Id. the Postal Service addresses in its filing; folders. Id. at 4. Changes in analytical • service performance results; levels of principles proposed by the Postal A detailed analysis of progress customer satisfaction achieved; and Service for use in the FY 2014 ACR are made in improving Periodicals cost such other matters that may be relevant identified and summarized in a table. coverage as required by the Commission to the Commission’s review. Id. at 4–5. The table omits more recent in the FY 2013 ACD. Id. at 32 n.14. The proposed changes that the Postal Postal Service is directed to provide this Access to filing. The Commission has Service does not hope to implement information no later than January 5, posted the publicly available portions of until preparing reports for Fiscal Year 2015. the FY 2014 ACR on its Web site at 2015. Id. at 4. Service performance. The Postal http://www.prc.gov. Market dominant product-by-product Service notes that the Commission Comment deadlines. Comments by costs, revenues, and volumes. issued rules on periodic reporting of interested persons are due on or before Comprehensive cost, revenue, and service performance measurement and February 2, 2015. Reply comments are volume data for all market dominant customer satisfaction in FY 2010. due on or before February 13, 2015. The products of general applicability are Responsive information appears in Commission, upon completion of its shown directly in the FY 2014 CRA or Library Reference USPS–FY14–29. Id. at review of the FY 2014 ACR, public ICRA. Id. at 6. 39. comments, and other data and The FY 2014 ACR includes a Customer satisfaction. The FY 2014 information submitted in this discussion by class of each market ACR discusses the Postal Service’s proceeding, will issue its ACD. Those dominant product, including costs, approach for measuring customer needing assistance filing electronically revenues, and volumes, workshare experience and satisfaction; describes may contact the Docket Section discounts and passthroughs responsive the methodology; presents a table with supervisor at 202–789–6846 or via email to 39 U.S.C. 3652(b), and FY 2014 survey results; and compares the results at [email protected]. Inquiries about incentive programs. Id. at 6–38.3 In from FY 2013 to FY 2014. Id. at 40–43. access to non-public materials should addition, in response to Order No. Competitive products. The FY 2014 also be directed to the Docket Section. 1427,4 the Postal Service also provides ACR provides costs, revenues, and Public Representative. Tracy Ferguson a schedule of future price increases for volumes for competitive products of is designated to serve as the Public Standard Mail Flats. FY 2014 ACR at 20. general applicability in the FY 2014 Representative to represent the interests Market dominant negotiated service CRA or ICRA. For competitive products of the general public in this proceeding. agreements. The FY 2014 ACR presents not of general applicability, data is Neither the Public Representative nor provided in non-public Library any additional persons assigned to assist 3 The Postal Service notes that a structural lag References USPS–FY14–NP2 and her shall participate in or advise as to resulted from the implementation of prices from USPS–FY14–NP27. The FY 2014 ACR any Commission decision in this Docket Nos. R2013–10 and R2013–11 on January 26, 2014. Because of that lag, it is unable to rely also addresses the competitive product proceeding other than in their on any of the worksharing exceptions for certain pricing standards of 39 U.S.C. 3633. Id. designated capacity. workshare passthroughs exceeding 100 percent. It at 44–47. IV. Ordering Paragraphs states that it will correct those passthroughs as Market tests; nonpostal services. The quickly as possible in future price adjustments. Id. at 6. Postal Service discusses the market It is ordered: 4 Docket No. ACR2010–R, Order on Remand, dominant market test conducted during 1. The Commission establishes Docket August 9, 2012 (Order No. 1427). FY 2014, the three competitive market No. ACR2014 to consider matters raised

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by the United States Postal Service’s FY SECURITIES AND EXCHANGE by CTA from time to time in light of 2014 Annual Compliance Report. COMMISSION experience, and (iii) designate as ‘‘late’’ any last sale price not collected and 2. The Postal Service is directed to [Release No. 34–73971; File No. SR–CTA– provide the Commission with the 2014–04] reported in accordance with the above- material listed in the Forthcoming referenced procedures.’’ Information section of this order no later Consolidated Tape Association; Notice The amendment proposes to reduce than January 5, 2015. of Filing of the Nineteenth Substantive from one-and-one-half minutes to 10 Amendment to the Second seconds the maximum amount of time 3. Pursuant to 39 U.S.C. 505, the Restatement of the CTA Plan by which each Participant is required to Commission appoints Tracy Ferguson as report trades. In addition to reducing an officer of the Commission (Public December 31, 2014. the time frame, the Participants propose Representative) in this proceeding to Pursuant to Section 11A of the to revise the language of the represent the interests of the general Securities Exchange Act of 1934 1 2 requirement so that it requires the public. (‘‘Act’’), and Rule 608 thereunder, notice is hereby given that on December Participants to report ‘‘as soon as 4. Comments on the United States 24, 2014, the Consolidated Tape practicable, but not later than 10 Postal Service’s FY 2014 Annual Association (‘‘CTA’’) Plan participants seconds,’’ after the time of execution of Compliance Report to the Commission, (‘‘Participants’’) 3 filed with the the trade. The amendment also proposes including the Comprehensive Statement Securities and Exchange Commission to remove the qualifier that called for of Postal Operations and other reports, (‘‘Commission’’) a proposal to amend trade reports to meet the time are due on or before February 2, 2015. the Second Restatement of the CTA Plan requirement not less than 90 percent of 5. Reply comments are due on or (the ‘‘CTA Plan’’).4 The amendment the time under normal conditions. before February 13, 2015. proposes to shorten the maximum time The Participants note that, during within which Participants must report 2013, the Commission approved a 6. The Secretary shall arrange for trades from 90 seconds to 10 seconds, publication of this order in the Federal FINRA rule amendment that modified subject to the Participants’ obligation to FINRA’s trade reporting rules to require Register. report trades as soon as practicable. The that FINRA members report over-the- By the Commission. Commission is publishing this notice to counter transactions in Eligible Shoshana M. Grove, solicit comments from interested Securities to FINRA as soon as persons on the proposed amendment. Secretary. practicable, but no later than 10 5 [FR Doc. 2014–30976 Filed 1–6–15; 8:45 am] I. Rule 608(a) seconds, following execution. The FINRA rule does not qualify the 10- BILLING CODE 7710–FW–P A. Purpose of the Amendment second requirement by providing that Currently, Section VIII(a) one must comply 90 percent of the time (Responsibility of Exchange under normal conditions. No other RAILROAD RETIREMENT BOARD Participants) of the CTA Plan provides Participant has a trade reporting rule that each Participant will ‘‘(i) report all that permits trade reporting more than Sunshine Act; Notice of Closed last sale prices relating to transactions 10 seconds after execution. As a result, Meeting in Eligible Securities as promptly as shortening the trade reporting time possible, (ii) establish and maintain under the CTA Plan seems warranted. collection and reporting procedures and Notice is hereby given that the In addition, the Participants facilities such as to assure that under Railroad Retirement Board will hold a understand that, contemporaneously normal conditions not less than 90% of meeting on January 15, 2015, 10:00 a.m. such last sale prices will be reported with the filing of this amendment, the at the Board’s meeting room on the 8th within that period of time (not in excess Participants in the UTP Plan floor of its headquarters building, 844 of one and one-half minutes) after the contemplate submitting a plan North Rush Street, Chicago, Illinois time of execution as may be determined amendment that would amend the 60611. The agenda for this meeting trade-reporting requirement under that follows: 1 15 U.S.C. 78k–1. plan to provide for the same trade- Closed meeting notice: 2 17 CFR 242.608. reporting requirements as the CTA Plan 3 Each participant executed the proposed Participants propose under this (1) Director of Programs Position amendment. The Participants are: BATS Exchange, Agreement. The person to contact for more Inc., BATS–Y Exchange, Inc., Chicago Board Options Exchange, Incorporated, Chicago Stock B. Additional Information Required by information is Martha P. Rico, Secretary Exchange, Inc., EDGA Exchange, Inc. (‘‘EDGA’’), Rule 608(a) to the Board, Phone No. 312–751–4920. EDGX Exchange, Inc. (‘‘EDGX’’), Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’), International 1. Impact of the Proposed Amendment Dated: January 5, 2015. Securities Exchange, LLC, NASDAQ OMX BX, Inc. Martha P. Rico, (‘‘Nasdaq BX’’), NASDAQ OMX PHLX, Inc. The Participants report the vast (‘‘Nasdaq PSX’’), Nasdaq Stock Market LLC, Secretary to the Board. National Stock Exchange, New York Stock majority of trade reports in well less [FR Doc. 2015–00060 Filed 1–5–15; 11:15 am] Exchange LLC (‘‘NYSE’’), NYSE MKT LLC (formerly than 10 seconds, so that the Plan NYSE Amex, Inc.), and NYSE Arca, Inc. (‘‘NYSE BILLING CODE 7905–01–P amendment is not likely to have a Arca’’). practical impact on trade reporting. 4 See Securities Exchange Act Release No. 10787 (May 10, 1974), 39 FR 17799 (declaring the CTA 2. Governing or Constituent Documents Plan effective). The CTA Plan, pursuant to which markets collect and disseminate last sale price Not applicable. information for non-NASDAQ listed securities, is a ‘‘transaction reporting plan’’ under Rule 601 under the Act, 17 CFR 242.601, and a ‘‘national market 5 See Securities Exchange Act Release No. 69561 system plan’’ under Rule 608 under the Act, 17 CFR (May 13, 2013), 78 FR 29190 (May, 17, 2013) (SR– 242.608. FINRA–2013–013).

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3. Implementation of the Amendment as practicable, but no more than 10 Commission, 100 F Street NE., All of the Participants have seconds from the time of the trade. In Washington, DC 20549–1090. addition, each Participant would be manifested their approval of the All submissions should refer to File proposed amendment by means of their required to establish and maintain Number SR–CTA–2014–04. This file execution of the Plan amendment. The collection and reporting procedures and number should be included on the Plan amendment would become facilities reasonably designed to assure subject line if email is used. To help the operational upon approval by the that such last sale prices will be Commission. reported within not more than 10 Commission process and review your seconds (rather than the current 90 comments more efficiently, please use 4. Development and Implementation seconds) following execution, regardless only one method. The Commission will Phases of whether they do so 90 percent of the post all comments on the Commission’s Not applicable. time under normal conditions. Internet Web site (http://www.sec.gov/ (Currently, each Participant has 90 rules/sro.shtml). Copies of the 5. Analysis of Impact on Competition seconds to report 90 percent of its trades submission, all subsequent The proposed amendment does not within 10 seconds following execution amendments, all written statements impose any burden on competition that under normal conditions.) with respect to the Amendments that is not necessary or appropriate in C. Manner of Collecting, Processing, are filed with the Commission, and all furtherance of the purposes of the Act. Sequencing, Making Available and written communications relating to the The Participants do not believe that the Disseminating Last Sale Information Amendments between the Commission proposed plan amendment introduces Not applicable. and any person, other than those that terms that are unreasonably may be withheld from the public in discriminatory for the purposes of D. Manner of Consolidation accordance with the provisions of 5 Section 11A(c)(1)(D) of the Act.6 Not applicable. U.S.C. 552, will be available for Web 6. Written Understanding or Agreements site viewing and printing in the E. Standards and Methods Ensuring Relating to Interpretation of, or Commission’s Public Reference Room, Promptness, Accuracy and Participation in, Plan 100 F Street NE., Washington, DC Completeness of Transaction Reports Not applicable. 20549, on official business days The amendment will support the between the hours of 10:00 a.m. and 7. Approval by Sponsors in Accordance prompt reporting of transaction reports 3:00 p.m. Copies of the Amendments With Plan by reducing from 90 seconds to 10 also will be available for inspection and Under Section IV(b) of the CTA Plan, seconds the maximum amount of time copying at the principal office of the by which each Participant must report each Participant must execute a written CTA. All comments received will be trades, subject to the Participants’ amendment to the CTA Plan before the posted without change; the Commission amendment can become effective. The obligation to report trades as soon as practicable. does not edit personal identifying amendment is so executed. information from submissions. You 8. Description of Operation of Facility F. Rules and Procedures Addressed to should submit only information that Contemplated by the Proposed Fraudulent or Manipulative you wish to make available publicly. All Amendment Dissemination submissions should refer to File Not applicable. Not applicable. Number SR–CTA–2014–04 and should be submitted on or before January 28, G. Terms of Access to Transaction 9. Terms and Conditions of Access 2015. Reports Not applicable. Not applicable. For the Commission, by the Division of 10. Method of Determination and Trading and Markets, pursuant to delegated 7 Imposition, and Amount of, Fees and H. Identification of Marketplace of authority. Charges Execution Brent J. Fields, Not applicable. Not applicable. Secretary. III. Solicitation of Comments [FR Doc. 2014–30975 Filed 1–6–15; 8:45 am] 11. Method of Frequency of Processor BILLING CODE 8011–01–P Evaluation Interested persons are invited to submit written data, views, and Not applicable. arguments concerning the foregoing, 12. Dispute Resolution including whether the proposed Not applicable. amendments are consistent with the Act. Comments may be submitted by II. Rule 601(a) any of the following methods: A. Equity Securities for Which Electronic Comments Transaction Reports Shall Be Required • Use the Commission’s Internet by the Plan comment form (http://www.sec.gov/ Not applicable. rules/sro.shtml); or • Send an email to rule-comments@ B. Reporting Requirements sec.gov. Please include File Number SR– As a result of the amendment, the CTA–2014–04 on the subject line. CTA Plan would require each Participant to report each trade as soon Paper Comments • Send paper comments in triplicate 6 15 U.S.C. 78k–1(c)(1)(D). to Secretary, Securities and Exchange 7 17 CFR 200.30–3(a)(27).

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SECURITIES AND EXCHANGE 34 (‘‘Amendment No. 34’’) to the Plan Participants in the CTA Plan COMMISSION and proposes to shorten the maximum contemplate submitting a plan time within which Participants must amendment that would amend the [Release No. 34–73970; File No. S7–24–89] report trades from 90 seconds to 10 trade-reporting requirement under that Joint Industry Plan; Notice of Filing of seconds, subject to the Participants’ plan to provide for the same trade- Amendment No. 34 to the Joint Self- obligation to report trades as soon as reporting requirements as the UTP Plan Regulatory Organization Plan practicable. The Commission is Participants propose under this Governing the Collection, publishing this notice to solicit Agreement. comments from interested persons. Consolidation and Dissemination of B. Impact of the Proposed Amendment Quotation and Transaction Information I. Rule 608(a) for Nasdaq-Listed Securities Traded on The Participants receive the vast Exchanges on an Unlisted Trading A. Purpose of the Amendments majority of trade reports in well less Privileges Basis Submitted by the Currently, section VIII(B) (Transaction than 10 seconds, so that the UTP Plan BATS Exchange, Inc., BATS Y- Reports) of the UTP Plan provides that amendment is not likely to have a Exchange, Inc., Chicago Board ‘‘Each Participant shall, during the time practical impact on trade reporting. Options Exchange, Incorporated, it is open for trading, be responsible C. Governing or Constituent Documents Chicago Stock Exchange, Inc., EDGA promptly to collect and transmit to the Exchange, Inc., EDGX Exchange, Inc., Processor Transaction Reports in Not applicable. Financial Industry Regulatory Eligible Securities executed in its D. Implementation of Amendment Authority, Inc., International Securities Market by means prescribed herein. . . . Exchange LLC, NASDAQ OMX BX, Inc., All such Transaction Reports shall be All of the Participants have NASDAQ OMX PHLX LLC, Nasdaq transmitted to the Processor within 90 manifested their approval of the Stock Market LLC, National Stock seconds after the time of execution of proposed amendment by means of their Exchange, Inc., New York Stock the transaction. Transaction Reports execution of the UTP Plan amendment. Exchange LLC, NYSE MKT LLC, and transmitted beyond the 90-second The UTP Plan amendment would NYSE Arca, Inc. period shall be designated as ‘late’ by become operational upon approval by the appropriate code or message.’’ the Commission. December 31, 2014. The amendment proposes to reduce E. Development and Implementation Pursuant to section 11A of the from 90 seconds to 10 seconds the Phases Securities Exchange Act of 1934 maximum amount of time by which (‘‘Act’’),1 and Rule 608 thereunder,2 each Participant is required to report Not applicable. notice is hereby given that on December trades. In addition to reducing the time F. Analysis of Impact on Competition 24, 2014, the operating committee frame, the Participants propose to (‘‘Operating Committee’’ or change the promptly-collect-and- The proposed amendment does not ‘‘Committee’’) 3 of the Joint Self- transmit standard to an as-soon-as- impose any burden on competition that Regulatory Organization Plan Governing practicable standard. It would now is not necessary or appropriate in the Collection, Consolidation, and require the Participants to ‘‘transmit all furtherance of the purposes of the Act. Dissemination of Quotation and Transaction Reports as soon as The Participants do not believe that the Transaction Information for Nasdaq- practicable, but not later than 10 proposed UTP Plan amendment Listed Securities Traded on Exchanges seconds, after the time of execution.’’ introduces terms that are unreasonably on an Unlisted Trading Privilege Basis In addition, the amendment would discriminatory for the purposes of (‘‘Nasdaq/UTP Plan’’ or ‘‘Plan’’) filed require each Participant to establish and section 11A(c)(1)(D) of the Act.6 with the Securities and Exchange maintain collection and reporting G. Written Understanding or Commission (‘‘Commission’’) an procedures and facilities reasonably Agreements Relating to Interpretation amendment to the Plan.4 This designed to comply with the reporting of, or Participation in, Plan amendment represents Amendment No. requirement. This would harmonize with a similar, existing requirement Not applicable. 1 15 U.S.C. 78k–1. under the CTA Plan. 2 17 CFR 242.608. H. Approval by Sponsors in Accordance 3 The Participants note that, during With Plan The Plan Participants (collectively, 2013, the Commission approved a ‘‘Participants’’) are the: BATS Exchange, Inc.; BATS Section IV(C)(1)(a) of the UTP Plan Y–Exchange, Inc.; Chicago Board Options FINRA rule amendment that modified Exchange, Incorporated; Chicago Stock Exchange, FINRA’s trade reporting rules to require requires the Participants to Inc.; EDGA Exchange, Inc.; EDGX Exchange, Inc.; that FINRA members report over-the- unanimously approve the amendment. Financial Industry Regulatory Authority, Inc.; They have so approved it. International Securities Exchange LLC; NASDAQ counter transactions in Eligible OMX BX, Inc.; NASDAQ OMX PHLX LLC; Nasdaq Securities to FINRA as soon as I. Description of Operation of Facility Stock Market LLC; National Stock Exchange, Inc.; practicable, but no later than 10 Contemplated by the Proposed New York Stock Exchange LLC; NYSE MKT LLC; 5 and NYSE Arca, Inc. seconds, following execution. No other Amendment 4 Participant has a trade reporting rule The Plan governs the collection, processing, and Not applicable. dissemination on a consolidated basis of quotation that permits trade reporting more than information and transaction reports in Eligible 10 seconds after execution. As a result, J. Terms and Conditions of Access Securities for each of its Participants. This shortening the trade reporting time consolidated information informs investors of the Not applicable. current quotation and recent trade prices of Nasdaq under the UTP Plan seems warranted. securities. It enables investors to ascertain from one In addition, the Participants K. Method of Determination and data source the current prices in all the markets understand that, contemporaneously Imposition, and Amount of, Fees and trading Nasdaq securities. The Plan serves as the required transaction reporting plan for its with the filing of this amendment, the Charges Participants, which is a prerequisite for their Not applicable. trading Eligible Securities. See Securities Exchange 5 See Securities Exchange Act Release No. 69561 Act Release No. 55647 (April 19, 2007), 72 FR (May 13, 2013), 78 FR 29190 (May, 17, 2013) (SR– 20891 (April 26, 2007). FINRA–2013–013). 6 15 U.S.C. 78k–1(c)(1)(D).

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L. Method and Frequency of Processor III. Solicitation of Comments For the Commission, by the Division of Evaluation Trading and Markets, pursuant to delegated The Commission seeks general authority.7 Not applicable. comments on Amendment No. 34. Brent J. Fields, M. Dispute Resolution Interested persons are invited to submit Secretary. written data, views, and arguments [FR Doc. 2014–30974 Filed 1–6–15; 8:45 am] Not applicable. concerning the foregoing, including BILLING CODE 8011–01–P II. Rule 601(a) whether the proposal is consistent with the Act. Comments may be submitted by A. Equity Securities for Which any of the following methods: SECURITIES AND EXCHANGE Transaction Reports Shall Be Required COMMISSION by the Plan Electronic Comments [Release No. 34–73974; File No. SR–CBOE– Not applicable. • Use the Commission’s Internet 2014–093] B. Reporting Requirements comment form (http://www.sec.gov/ rules/sro.shtml); or Self-Regulatory Organizations; As a result of the amendment, the • Chicago Board Options Exchange, UTP Plan would require each Send an email to rule-comments@ Incorporated; Notice of Filing and Participant to report each trade as soon sec.gov. Please include File Number S7– Immediate Effectiveness of a Proposed as practicable, but no more than 10 24–89 on the subject line. Rule Change To Amend Rule 6.54 seconds from the time of the trade. In Paper Comments addition, each Participant’s members December 31, 2014. would be required to establish and • Send paper comments in triplicate Pursuant to section 19(b)(1) of the maintain collection and reporting to Secretary, Securities and Exchange Securities Exchange Act of 1934 (the procedures and facilities such as to Commission, 100 F Street NE., ‘‘Act’’),1 and Rule 19b–4 thereunder,2 assure that such last sale prices will be Washington, DC 20549–1090. notice is hereby given that on December reported within not more than 10 All submissions should refer to File 30, 2014, Chicago Board Options seconds (rather than the current 90 Number S7–24–89. This file number Exchange, Incorporated (the ‘‘Exchange’’ seconds) following execution (or such should be included on the subject line or ‘‘CBOE’’) filed with the Securities shorter period as the Participants may and Exchange Commission (the approve), regardless of whether they do if email is used. To help the ‘‘Commission’’) the proposed rule so 90 percent of the time under normal Commission process and review your change as described in Items I and II conditions. Currently, each Participant comments more efficiently, please use below, which Items have been prepared has 90 seconds to report 90 percent of only one method. The Commission will by the Exchange. The Commission is its trades within 10 seconds following post all comments on the Commission’s publishing this notice to solicit execution under normal conditions. Web site (http://www.sec.gov/rules/ sro.shtml). Copies of the submission, all comments on the proposed rule change C. Manner of Collecting, Processing, written statements with respect to the from interested persons. Sequencing, Making Available and proposed Plan Amendment that are I. Self-Regulatory Organization’s Disseminating Last Sale Information filed with the Commission, and all Statement of the Terms of Substance of Not applicable. written communications relating to the the Proposed Rule Change proposed Plan Amendment between the D. Manner of Consolidation The Exchange proposes to extend its Commission and any person, other than program that allows transactions to take Not applicable. those that may be withheld from the place at a price that is below $1 per E. Standards and Methods Ensuring public in accordance with the option contract through January 5, 2016. Promptness, Accuracy and provisions of 5 U.S.C. 552, will be The text of the proposed rule change is Completeness of Transaction Reports available for Web site viewing and available on the Exchange’s Web site printing in the Commission’s Public (http://www.cboe.com/AboutCBOE/ The amendment will support the Reference Room, 100 F Street NE., CBOELegalRegulatoryHome.aspx), at prompt reporting of transaction reports Washington, DC 20549, on official the Exchange’s Office of the Secretary, by reducing from 90 seconds to 10 business days between the hours of and at the Commission’s Public seconds the maximum amount of time 10:00 a.m. and 3:00 p.m. Copies of the Reference Room. by which each Participant must receive filing also will be available for Web site II. Self-Regulatory Organization’s transaction reports from its members, viewing and printing at the Office of the subject to the Participants’ obligation to Statement of the Purpose of, and Secretary of the Committee, currently report trades as promptly as possible. Statutory Basis for, the Proposed Rule located at the CBOE, 400 S. LaSalle Change F. Rules and Procedures Addressed to Street, Chicago, IL 60605. All comments Fraudulent or Manipulative received will be posted without change; In its filing with the Commission, the Dissemination the Commission does not edit personal Exchange included statements concerning the purpose of and basis for identifying information from Not applicable. the proposed rule change and discussed submissions. You should submit only any comments it received on the G. Terms of Access to Transaction information that you wish to make Reports proposed rule change. The text of these available publicly. All submissions statements may be examined at the Not applicable. should refer to File Number S7–24–89 places specified in Item IV below. The and should be submitted on or before Exchange has prepared summaries, set H. Identification of Marketplace of January 28, 2015. Execution 1 15 U.S.C. 78s(b)(1). Not Applicable. 7 17 CFR 200.30–3(a)(27). 2 17 CFR 240.19b–4.

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forth in sections A, B, and C below, of transactions are traded pursuant to the January 5, 2016, so that the procedures the most significant aspects of such same procedures applicable to $1 can continue without interruption while statements. cabinet trades, except that (i) bids and CBOE considers whether to seek offers for opening transactions are only permanent approval of the temporary A. Self-Regulatory Organization’s permitted to accommodate closing procedures. Statement of the Purpose of, and transactions in order to limit use of the Statutory Basis for, the Proposed Rule 2. Statutory Basis procedure to liquidations of existing Change positions, and (ii) the procedures are The Exchange believes the proposed 1. Purpose also available for trading in option rule change is consistent with the Securities Exchange Act of 1934 (the An ‘‘accommodation’’ or ‘‘cabinet’’ classes participating in the Penny Pilot 4 ‘‘Act’’) and the rules and regulations trade refers to trades in listed options on Program. The Exchange believes that thereunder applicable to the Exchange the Exchange that are worthless or not allowing a price of at least $0 but less and, in particular, the requirements of actively traded. Cabinet trading is than $1 better accommodates the closing section 6(b) of the Act.6 Specifically, the generally conducted in accordance with of options positions in series that are the Exchange Rules, except as provided worthless or not actively traded, Exchange believes the proposed rule particularly due to market conditions change is consistent with the section in Exchange Rule 6.54, Accommodation 7 Liquidations (Cabinet Trades), which which may result in a significant 6(b)(5) requirements that the rules of sets forth specific procedures for number of series being out-of-the- an exchange be designed to prevent engaging in cabinet trades. Rule 6.54 money. For example, a market fraudulent and manipulative acts and currently provides for cabinet participant might have a long position practices, to promote just and equitable transactions to occur via open outcry at in a call series with a strike price of principles of trade, to foster cooperation a cabinet price of $1 per option contract $100 and the underlying stock might and coordination with persons engaged in any options series open for trading in now be trading at $30. In such an in regulating, clearing, settling, the Exchange, except that the Rule is not instance, there might not otherwise be a processing information with respect to, applicable to trading in option classes market for that person to close-out the and facilitating transactions in participating in the Penny Pilot position even at the $1 cabinet price securities, to remove impediments to Program. Under the procedures, bids (e.g., the series might be quoted no and perfect the mechanism of a free and 5 and offers (whether opening or closing bid). open market and a national market a position) at a price of $1 per option The purpose of the instant rule system, and, in general, to protect contract may be represented in the change is to extend the operation of investors and the public interest. trading crowd by a Floor Broker or by these temporary procedures through Additionally, the Exchange believes the a Market-Maker or provided in response proposed rule change is consistent with CBOE–2013–063); 69893 (June 28, 2013), 78 FR the section 6(b)(5) 8 requirement that the to a request by a PAR Official/OBO, a 40539 (July 5, 2013)(both extending the amended Floor Broker or a Market-Maker, but procedures on a temporary basis through January 5, rules of an exchange not be designed to must yield priority to all resting orders 2014) and 71090 (December 17, 2013), 78 FR 77532 permit unfair discrimination between in the PAR Official/OBO cabinet book (December 23, 2013)(SR–CBOE–2013– customers, issuers, brokers, or dealers. 118)(extending the amended procedures on a (which resting cabinet book orders may In particular, the Exchange believes temporary basis through January 5, 2015). that allowing for liquidations at a price be closing only). So long as both the 4 Currently the $1 cabinet trading procedures are buyer and the seller yield to orders limited to options classes traded in $0.05 or $0.10 less than $1 per option contract better resting in the cabinet book, opening standard increment. The $1 cabinet trading facilitates the closing of options procedures are not available in Penny Pilot Program positions that are worthless or not cabinet bids can trade with opening classes because in those classes an option series can cabinet offers at $1 per option contract. trade in a standard increment as low as $0.01 per actively trading. Further, the Exchange The Exchange has temporarily share (or $1.00 per option contract with a 100 share believes the proposal is consistent with amended the procedures through multiplier). Because the temporary procedures the Act because the proposed extension allow trading below $0.01 per share (or $1.00 per is of appropriate length to allow the January 5, 2015 to allow transactions to option contract with a 100 share multiplier), the take place in open outcry at a price of procedures are available for all classes, including Exchange and the Commission to at least $0 but less than $1 per option those classes participating in the Penny Pilot continue to assess the impact of the contract.3 These lower priced Program. Exchange’s authority to allow 5 As with other accommodation liquidations transactions to take place in open outcry under Rule 6.54, transactions that occur for less 3 See Securities Exchange Act Release Nos. 59188 than $1 are not be disseminated to the public on at a price of at least $0 but less than $1 (December 30, 2008), 74 FR 480 (January 6, the consolidated tape. In addition, as with other per option in accordance with its 2009)(SR–CBOE–2008–133)(adopting the amended accommodation liquidations under Rule 6.54, the attendant obligations and conditions, procedures on a temporary basis through January transactions are exempt from the Consolidated including the process for submitting 30, 2009), 59331 (January 30, 2009), 74 FR 6333 Options Audit Trail (‘‘COATS’’) requirements of (February 6, 2009)(extending the amended Exchange Rule 6.24, Required Order Information. such transactions to OCC for clearing. procedures on a temporary basis through May 29, However, the Exchange maintains quotation, order B. Self-Regulatory Organization’s 2009), 60020 (June 1, 2009), 74 FR 27220 (June 8, and transaction information for the transactions in 2009)(SR–CBOE–2009–034)(extending the amended the same format as the COATS data is maintained. Statement on Burden on Competition procedures on a temporary basis through June 1, In this regard, all transactions for less than $1 must CBOE does not believe that the 2010), 62192 (May 28, 2010), 75 FR 31828 (June 4, be reported to the Exchange following the close of 2010)(SR–CBOE–2010–052)(extending the amended each business day. The rule also provides that proposed rule change will impose any procedures on a temporary basis through June 1, transactions for less than $1 will be reported for burden on competition that is not 2011); 64403 (May 4, 2011), 76 FR 27110 (May 10, clearing utilizing forms, formats and procedures necessary or appropriate in furtherance 2011)(SR–CBOE–2011–048)(extending the amended established by the Exchange from time to time. In of the purposes of the Act. The procedures on a temporary basis through December this regard, the Exchange initially intends to have 30, 2011); 65872 (December 2, 2011), 76 FR 76788 clearing firms directly report the transactions to The Exchange believes that allowing for (December 8, 2011)(SR–CBOE–2011–113)(extending Options Clearing Corporation (‘‘OCC’’) using OCC’s liquidations at a price less than $1 per the amended procedures on a temporary basis position adjustment/transfer procedures. This option contract better facilitates the through June 29, 2012) 67144 (June 6, 2012), 77 FR manner of reporting transactions for clearing is 35095 (June 12, 2012)(SR–CBOE–2012– similar to the procedure that CBOE currently 053)(extending the amended procedures on a employs for on-floor position transfer packages 6 15 U.S.C. 78f(b). temporary basis through June 28, 2013), and 69854 executed pursuant to Exchange Rule 6.49A, 7 15 U.S.C. 78f(b)(5). (June 25, 2013), 78 FR 39424 (July 1, 2013)(SR– Transfer of Positions. 8 Id.

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closing of options positions that are 19(b)(3)(A) of the Act 10 and Rule 19b– Paper Comments worthless or not actively trading. The 4(f)(6) thereunder.11 • Send paper comments in triplicate Exchange believes this promotes fair Under Rule 19b–4(f)(6) of the Act,12 to Brent J. Fields, Secretary, Securities and orderly markets, as well as assists the proposal does not become operative the Exchange in its ability to effectively for 30 days after the date of its filing, or and Exchange Commission, 100 F Street attract order flow and liquidity to its such shorter time as the Commission NE., Washington, DC 20549–1090. market, and ultimately benefit all CBOE may designate if consistent with the All submissions should refer to File Trading Permit Holders (‘‘TPHs’’) and protection of investors and the public Number SR–CBOE-2014–093. This file all investors. interest. The Exchange has requested number should be included on the The Exchange does not believe that that the Commission waive the 30-day subject line if email is used. To help the the proposed rule change will impose operative delay period after which a Commission process and review your any burden on intramarket competition proposed rule change under Rule 19b- comments more efficiently, please use that is not necessary or appropriate in 4(f)(6) becomes operative so that the only one method. The Commission will furtherance of the purposes of the Act pilot may continue without post all comments on the Commission’s because the proposed rule change does interruption. The Commission believes Internet Web site (http://www.sec.gov/ that waiver of the 30-day operative not make any changes to Exchange rules/sro.shtml). Copies of the delay is consistent with the protection rules, but simply extends an existing submission, all subsequent of investors and the public interest temporary program. Further, the because it will allow the pilot to amendments, all written statements program is available to all market continue uninterrupted, thereby with respect to the proposed rule participants through CBOE TPHs. The avoiding any potential investor change that are filed with the Exchange does not believe that the confusion that could result from a Commission, and all written proposed rule change will impose any temporary interruption in the pilot and communications relating to the burden on intermarket competition that allowing members to continue to benefit proposed rule change between the is not necessary or appropriate in from the program. Based on the Commission and any person, other than furtherance of the purposes of the Act foregoing, the Commission hereby those that may be withheld from the because, again, the proposed rule waives the 30-day operative delay and public in accordance with the change does not make any changes to designates the proposal operative upon provisions of 5 U.S.C. 552, will be Exchange rules, but simply extends an filing.13 available for Web site viewing and existing temporary program. Moreover, At any time within 60 days of the printing in the Commission’s Public to the extent that the program makes filing of the proposed rule change, the Reference Room, 100 F Street NE., CBOE a more attractive marketplace, as Commission summarily may Washington, DC 20549 on official noted above, the program is available to temporarily suspend such rule change if business days between the hours of all market participants through CBOE it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of the TPHs. action is necessary or appropriate in the filing also will be available for C. Self-Regulatory Organization’s public interest, for the protection of inspection and copying at the principal Statement on Comments on the investors, or otherwise in furtherance of office of the Exchange. All comments Proposed Rule Change Received From the purposes of the Act. If the received will be posted without change; Members, Participants, or Others Commission takes such action, the the Commission does not edit personal Commission will institute proceedings identifying information from The Exchange neither solicited nor to determine whether the proposed rule submissions. You should submit only received comments on the proposed change should be approved or information that you wish to make rule change. disapproved. available publicly. All submissions III. Date of Effectiveness of the IV. Solicitation of Comments should refer to File Number SR–CBOE- Proposed Rule Change and Timing for 2014–093 and should be submitted on Commission Action Interested persons are invited to or before January 28, 2015. submit written data, views, and For the Commission, by the Division of Because the foregoing rule does not (i) arguments concerning the foregoing, Trading and Markets, pursuant to delegated significantly affect the protection of including whether the proposed rule authority.14 investors or the public interest; (ii) change is consistent with the Act. impose any significant burden on Comments may be submitted by any of Brent J. Fields, competition; and (iii) become operative the following methods: Secretary. for 30 days from the date on which it Electronic Comments [FR Doc. 2014–30972 Filed 1–6–15; 8:45 am] was filed, or such shorter time as the BILLING CODE 8011–01–P Commission may designate if consistent • Use the Commission’s Internet with the protection of investors and the comment form (http://www.sec.gov/ public interest, provided that the self- rules/sro.shtml); or regulatory organization has given the • Send an email to rule-comments@ Commission written notice of its intent sec.gov. Please include File Number SR– to file the proposed rule change at least CBOE–2014–093 on the subject line. five business days prior to the date of filing of the proposed rule change or 10 15 U.S.C. 78s(b)(3)(A). such shorter time as designated by the 11 17 CFR 240.19b–4(f)(6). Commission,9 the proposed rule change 12 Id. has become effective pursuant to section 13 For purposes only of waiving the operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital 9 The Exchange has satisfied this requirement. formation. See 15 U.S.C. 78c(f). 14 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE of those statements may be examined at pursuant to the ‘‘UTP Plan,’’ 6 (ii) has COMMISSION the places specified in Item IV below. been admitted to dealings on the The Exchange has prepared summaries, Exchange pursuant to a grant of unlisted [Release No. 34–73969; File No. SR– NYSEMKT–2014–112] set forth in sections A, B, and C below, trading privileges in accordance with of the most significant parts of such section 12(f) of the Act,7 and (iii) if it Self-Regulatory Organizations; NYSE statements. is an ‘‘Exchange Traded Product’’ MKT LLC; Notice of Filing and (‘‘ETP’’) that does not have any A. Self-Regulatory Organization’s component security that is listed or Immediate Effectiveness of Proposed Statement of the Purpose of, and the Rule Change Proposes To Amend traded on the Exchange or the New York Statutory Basis for, the Proposed Rule Stock Exchange LLC (‘‘NYSE’’); NYSE MKT Rule 500—Equities To Change Extend the Operation of the Pilot provided, however, that the Invesco TM TM Program That Allows ‘‘UTP Securities’’ 1. Purpose PowerShares QQQ (the ‘‘QQQ’’ ) To Be Traded on the Exchange may be admitted to dealings on the The Exchange proposes to amend Exchange pursuant to a grant of unlisted Pursuant to a Grant of Unlisted NYSE MKT Rule 500—Equities to Trading Privileges trading privileges although one or more extend the operation of the pilot component securities of the QQQ may December 31, 2014. program that allows ‘‘UTP Securities’’ to be listed or traded on the Exchange or Pursuant to section 19(b)(1) 1 of the be traded on the Exchange pursuant to the NYSE, subject to the conditions of 4 Securities Exchange Act of 1934 (the a grant of unlisted trading privileges. Rule 504(b)(5)—Equities. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 The pilot program is currently The Exchange notes that its New notice is hereby given that on December scheduled to expire on December 31, Market Model Pilot (‘‘NMM Pilot’’), 23, 2014, NYSE MKT LLC (the 2014; the Exchange proposes to extend which, among other things, eliminated ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with it until the earlier of Commission the function of specialists on the the Securities and Exchange approval to make such pilot permanent Exchange and created a new category of Commission (the ‘‘Commission’’) the or July 31, 2015. market participant, the Designated proposed rule change as described in NYSE MKT Rules 500–525—Equities, Market Maker (‘‘DMM’’),8 is also Items I and II below, which Items have as a pilot program, govern the trading of scheduled to end on December 31, been prepared by the self-regulatory any ‘‘UTP Securities’’ on the Exchange 2014.9 The timing of the operation of organization. The Commission is pursuant to unlisted trading privileges publishing this notice to solicit (‘‘UTP Pilot Program’’).5 The Exchange 6 With respect to Nasdaq Securities, the term comments on the proposed rule change hereby seeks to extend the operation of ‘‘UTP Plan’’ means the Joint Self-Regulatory the UTP Pilot Program, currently Organization Plan Governing the Collection, from interested persons. Consolidation and Dissemination of Quotation and scheduled to expire on December 31, Transaction Information for Nasdaq-listed I. Self-Regulatory Organization’s 2014, until the earlier of Commission Securities Traded on Exchanges on an Unlisted Statement of the Terms of Substance of approval to make such pilot permanent Trading Privilege Basis, as amended from time to the Proposed Rule Change time, filed with and approved by the Commission. or July 31, 2015. See Securities Exchange Act Release No. 70953 The Exchange proposes to amend The UTP Pilot Program includes any (November 27, 2013), 78 FR 72932 (December 4, NYSE MKT Rule 500—Equities to security, other than a security that is 2013) (File No. S7–24–89). The Exchange’s extend the operation of the pilot listed on the Exchange, that (i) is predecessor, the American Stock Exchange LLC, joined the UTP Plan in 2001. See Securities program that allows ‘‘UTP Securities’’ to designated as an ‘‘eligible security’’ Exchange Act Release No. 55647 (April 19, 2007), be traded on the Exchange pursuant to 72 FR 20891 (April 26, 2007) (File No. S7–24–89). a grant of unlisted trading privileges. 4 ‘‘UTP Securities’’ is included within the In March 2009, the Exchange changed its name to The pilot program is currently definition of ‘‘security’’ as that term is used in the NYSE Amex LLC, and, in May 2012, the Exchange subsequently changed its name to NYSE MKT LLC. scheduled to expire on December 31, NYSE MKT Equities Rules. See NYSE MKT Rule 3—Equities. In accordance with this definition, See Securities Exchange Act Release Nos. 59575 2014; the Exchange proposes to extend UTP Securities are admitted to dealings on the (March 13, 2009), 74 FR 11803 (March 19, 2009) it until the earlier of Commission Exchange on an ‘‘issued,’’ ‘‘when issued,’’ or ‘‘when (SR–NYSEALTR–2009–24) and 67037 (May 21, approval to make such pilot permanent distributed’’ basis. See NYSE MKT Rule 501— 2012), 77 FR 31415 (May 25, 2012) (SR– NYSEAmex–2012–32). With respect to all other or July 31, 2015. The text of the Equities. 5 See Securities Exchange Act Release No. 62479 UTP Securities, the term ‘‘UTP Plan’’ means the proposed rule change is available on the (July 9, 2010), 75 FR 41264 (July 15, 2010) (SR– Consolidated Tape Association Plan for the Exchange’s Web site at www.nyse.com, NYSEAmex–2010–31). See also Securities Dissemination of Last Sale Prices of Transactions in at the principal office of the Exchange, Exchange Act Release Nos. 62857 (September 7, Eligible Securities, as amended from time to time, filed with and approved by the Commission. See on the Commission’s Web site at 2010), 75 FR 55837 (September 14, 2010) (SR– NYSEAmex–2010–89); 63601 (December 22, 2010), Securities Exchange Act Release No. 10787 (May www.sec.gov, and at the Commission’s 75 FR 82117 (December 29, 2010) (SR–NYSEAmex– 10, 1974), 39 FR 17799 (May 20, 1974) (declaring Public Reference Room. 2010–124); 64746 (June 24, 2011), 76 FR 38446 the CTA Plan effective). See also Securities (June 30, 2011) (SR–NYSEAmex–2011–45); 66040 Exchange Release No. 70794 (October 31, 2013), 78 II. Self-Regulatory Organization’s (December 23, 2011), 76 FR 82324 (December 30, FR 66789 (November 6, 2013) (SR–CTA–2013–05). Statement of the Purpose of, and 2011) (SR–NYSEAmex–2011–104); 67497 (July 25, 7 15 U.S.C. 78l. Statutory Basis for, the Proposed Rule 2012), 77 FR 45404 (July 31, 2012) (SR–NYSEMKT– 8 See NYSE MKT Rule 103—Equities. Change 2012–25); 68561 (January 2, 2013), 78 FR 1290 9 See Securities Exchange Act Release No. 60758 (January 8, 2013) (SR–NYSEMKT–2012–86); 69814 (October 1, 2009), 74 FR 51639 (October 7, 2009) In its filing with the Commission, the (June 20, 2013), 78 FR 38762 (June 27, 2013) (SR– (SR–NYSEAmex–2009–65). See also Securities self-regulatory organization included NYSEMKT–2013–53); 71363 (January 21, 2014), 79 Exchange Act Release Nos. 61030 (November 19, FR 4373 (January 27, 2014) (SR–NYSEMKT–2014– 2009), 74 FR 62365 (November 27, 2009) (SR– statements concerning the purpose of, 01); and 72624 (July 16, 2014), 79 FR 42595 (July NYSEAmex–2009–83); 61725 (March 17, 2010), 75 and basis for, the proposed rule change 22, 2014) (SR–NYSEMKT–2014–59). The UTP Pilot FR 14223 (March 24, 2010) (SR–NYSEAmex–2010– and discussed any comments it received Program was originally limited to securities listed 28); 62820 (September 1, 2010), 75 FR 54935 on the proposed rule change. The text on the Nasdaq Stock Market LLC (‘‘Nasdaq (September 9, 2010) (SR–NYSEAmex–2010–86); Securities’’), but the Exchange recently expanded 63615 (December 29, 2010), 76 FR 611 (January 5, the UTP Pilot Program beyond Nasdaq Securities. 2011) (SR–NYSEAmex–2010–123); 64773 (June 29, 1 15 U.S.C. 78s(b)(1). See Securities Exchange Act Release No. 71952 2011), 76 FR 39453 (July 6, 2011) (SR–NYSEAmex– 2 15 U.S.C. 78a. (April 16, 2014), 79 FR 22558 (April 22, 2014) (SR– 2011–43); 66042 (December 23, 2011), 76 FR 82326 3 17 CFR 240.19b–4. NYSEMKT–2014–32). (December 30, 2011) (SR–NYSEAmex–2011–102);

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the UTP Pilot Program was designed to furthers the objectives of section 6(b)(5) any burden on competition that is not correspond to that of the NMM Pilot. In of the Act,15 in particular, in that it is necessary or appropriate in furtherance approving the UTP Pilot Program, the designed to prevent fraudulent and of the purposes of the Act. The Commission acknowledged that the manipulative acts and practices, to Exchange believes that extending the rules relating to DMM benefits and promote just and equitable principles of UTP Pilot Program will promote duties in trading Nasdaq Securities on trade, to remove impediments to and competition in the trading of UTP the Exchange pursuant to the UTP Pilot perfect the mechanism of a free and Securities and thereby provide market Program are consistent with the Act 10 open market and a national market participants with opportunities for and noted the similarity to the NMM system, and, in general, to protect improved price discovery, increased Pilot, particularly with respect to DMM investors and the public interest; (ii) liquidity, more competitive quotes, and obligations and benefits 11—the section 11A(a)(1) of the Act,16 in that it greater price improvement. Exchange considers the same to be true seeks to ensure the economically Finally, the Exchange notes that it with respect to all UTP Securities, efficient execution of securities operates in a highly competitive market including for ETPs that are included in transactions and fair competition among in which market participants can the UTP Pilot Program. Furthermore, the brokers and dealers and among readily favor competing venues. In such UTP Pilot Program rules pertaining to exchange markets; and (iii) section 12(f) an environment, the Exchange must the assignment of securities to DMMs of the Act,17 which governs the trading continually review, and consider are substantially similar to the rules of securities pursuant to unlisted adjusting the services it offers and the implemented through the NMM Pilot.12 trading privileges consistent with the requirements it imposes to remain The Exchange has similarly filed to maintenance of fair and orderly markets, competitive with other U.S. equity extend the operation of the NMM Pilot the protection of investors and the exchanges. For the reasons described until the earlier of Commission approval public interest, and the impact of above, the Exchange believes that the to make the NMM Pilot permanent or extending the existing markets for such proposed rule change reflects this July 31, 2015.13 securities. competitive environment. Extension of the UTP Pilot Program in Specifically, the Exchange believes C. Self-Regulatory Organization’s tandem with the NMM Pilot, both from that extending the UTP Pilot Program Statement on Comments on the December 31, 2014 until the earlier of would provide for the uninterrupted Proposed Rule Change Received From Commission approval to make such trading of UTP Securities on the Members, Participants, or Others pilots permanent or July 31, 2015, will Exchange on an unlisted trading provide for the uninterrupted trading of privileges basis and thus continue to No written comments were solicited or received with respect to the proposed UTP Securities on the Exchange on an encourage the additional utilization of, rule change. unlisted trading privileges basis and and interaction with, the Exchange, thus continue to encourage the thereby providing market participants III. Date of Effectiveness of the additional utilization of, and interaction with additional price discovery, Proposed Rule Change and Timing for with, the Exchange, and provide market increased liquidity, more competitive Commission Action participants with improved price quotes and potentially greater price discovery, increased liquidity, more The foregoing rule change has become improvement for UTP Securities. effective pursuant to section 19(b)(3)(A) competitive quotes and greater price Additionally, under the UTP Pilot 20 21 improvement for UTP Securities. of the Act and Rule 19b–4(f)(6) Program, UTP Securities trade on the thereunder because the proposal does The proposed change is not otherwise Exchange pursuant to rules governing intended to address any other issues not: (i) Significantly affect the the trading of Exchange-Listed securities protection of investors or the public and the Exchange is not aware of any that previously have been approved by problems that member organizations interest; (ii) impose any significant the Commission. Accordingly, this burden on competition; and (iii) by its would have in complying with the proposed rule change would permit the proposed change. terms, become operative for 30 days Exchange to extend the effectiveness of from the date on which it was filed, or 2. Statutory Basis the UTP Pilot Program in tandem with such shorter time as the Commission The Exchange believes that the the NMM Pilot, which the Exchange has may designate if consistent with the proposed rule change is consistent with similarly proposed to extend until the protection of investors and the public earlier of Commission approval to make interest.22 the requirements of the Act and the 18 rules and regulations thereunder such pilot permanent or July 31, 2015. A proposed rule change filed under Finally, the Exchange believes that it applicable to a national securities Rule 19b–4(f)(6) normally may not is subject to significant competitive exchange. In particular, the Exchange become operative prior to 30 days after forces, as described below in the believes that its proposal to extend the the date of filing. However, Rule 19b– Exchange’s statement regarding the 23 UTP Pilot Program is consistent with (i) 4(f)(6)(iii) permits the Commission to burden on competition. For these section 6(b) of the Act,14 in general, and designate a shorter time if such action reasons, the Exchange believes that the is consistent with the protection of proposal is consistent with the Act. 67495 (July 25, 2012), 77 FR 45406 (July 31, 2012) investors and the public interest. The (SR–NYSEMKT–2012–21); 68559 (January 2, 2013), B. Self-Regulatory Organization’s 78 FR 1286 (January 8, 2013) (SR–NYSEMKT– Statement on Burden on Competition 20 15 U.S.C. 78s(b)(3)(A). 2012–84); 69812 (June 20, 2013), 78 FR 38766 (June 21 17 CFR 240.19b–4(f)(6). 27, 2013) (SR–NYSEMKT–2013–51); 71342 (January In accordance with section 6(b)(8) of 22 In addition, Rule 19b–4(f)(6)(iii) requires the 17, 2014), 79 FR 4197 (January 24, 2014) (SR– the Act,19 the Exchange believes that the Exchange to give the Commission written notice of NYSEMKT–2014–02); and 72622 (July 16, 2014). 79 the Exchange’s intent to file the proposed rule FR 42600 (July 22, 2014) (SR–NYSEMKT–2014–57). proposed rule change would not impose change, along with a brief description and text of 10 15 U.S.C. 78. the proposed rule change, at least five business days 15 11 See SR–NYSEAmex–2010–31, supra note 5, at 15 U.S.C. 78f(b)(5). prior to the date of filing of the proposed rule 41271. 16 15 U.S.C. 78k–1(a)(1). change, or such shorter time as designated by the 12 Id. 17 15 U.S.C. 781(f). Commission. The Exchange has satisfied this 13 See SR–NYSEMKT–2014–109. 18 See supra note 13. requirement. 14 15 U.S.C. 78f(b). 19 15 U.S.C. 78f(b)(8). 23 17 CFR 240.19b–4(f)(6)(iii).

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Exchange has requested that the file number should be included on the 18, 2014, The NASDAQ Stock Market Commission waive the 30-day operative subject line if email is used. To help the LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed delay period so that the proposal may Commission process and review your with the Securities and Exchange become operative before the pilot’s comments more efficiently, please use Commission (‘‘SEC’’ or ‘‘Commission’’) expiration. The Exchange stated that an only one method. The Commission will the proposed rule change as described immediate operative date is necessary in post all comments on the Commission’s in Items I, II, and III below, which Items order to immediately implement the Internet Web site (http://www.sec.gov/ have been prepared by the Exchange. proposed rule change so that member rules/sro.shtml). Copies of the The Commission is publishing this organizations could continue to benefit submission, all subsequent notice to solicit comments on the from the pilot program without amendments, all written statements proposed rule change from interested interruption after December 31, 2014. with respect to the proposed rule persons. The Commission believes that waiver change that are filed with the of the 30-day operative delay period is Commission, and all written I. Self-Regulatory Organization’s consistent with the protection of communications relating to the Statement of the Terms of the Substance investors and the public interest. proposed rule change between the of the Proposed Rule Change Specifically, the Commission believes Commission and any person, other than The text of the proposed rule change that the proposal would allow the pilot those that may be withheld from the is available on the Exchange’s Web site to continue uninterrupted, thereby public in accordance with the at http://nasdaq.cchwallstreet.com, at avoiding any potential investor provisions of 5 U.S.C. 552, will be the principal office of the Exchange, and confusion that could result from the available for Web site viewing and at the Commission’s Public Reference temporary interruption in the pilot printing in the Commission’s Public Room. program. For these reasons, the Reference Room, 100 F Street NE., Commission believes that waiving the Washington, DC 20549, on official II. Self-Regulatory Organization’s 30-day operative delay is consistent business days between the hours of Statement of the Purpose of, and with the protection of investors and the 10:00 a.m. and 3:00 p.m. Copies of such Statutory Basis for, the Proposed Rule public interest, and designates the filing also will be available for Change proposed rule change to be operative on inspection and copying at the principal In its filing with the Commission, the December 31, 2014.24 office of the Exchange. All comments Exchange included statements At any time within 60 days of the received will be posted without change; concerning the purpose of and basis for filing of the proposed rule change, the the Commission does not edit personal the proposed rule change and discussed Commission summarily may identifying information from any comments it received on the temporarily suspend such rule change if submissions. You should submit only proposed rule change. The text of these it appears to the Commission that such information that you wish to make statements may be examined at the action is necessary or appropriate in the available publicly. All submissions places specified in Item IV below. The public interest, for the protection of should refer to File Number SR– Exchange has prepared summaries, set investors, or otherwise in furtherance of NYSEMKT–2014–112 and should be forth in sections A, B, and C below, of the purposes of the Act.25 submitted on or before January 28, 2015. the most significant aspects of such IV. Solicitation of Comments For the Commission, by the Division of statements. Trading and Markets, pursuant to delegated Interested persons are invited to authority.26 A. Self-Regulatory Organization’s Statement of the Purpose of, and submit written data, views, and Brent J. Fields, Statutory Basis for, the Proposed Rule arguments concerning the foregoing, Secretary. including whether the proposed rule Change [FR Doc. 2014–30970 Filed 1–6–15; 8:45 am] change is consistent with the Act. 1. Purpose Comments may be submitted by any of BILLING CODE 8011–01–P the following methods: Nasdaq Rule 4761 addresses the treatment of quotes/orders in securities Electronic Comments SECURITIES AND EXCHANGE that are the subject of issuer corporate COMMISSION • Use the Commission’s Internet actions related to a dividend, payment comment form (http://www.sec.gov/ [Release No. 34–73972; File No. SR– or distribution. The rule applies to any rules/sro.shtml); or NASDAQ–2014–126] trading interest that is carried on the • Send an email to rule-comments@ Nasdaq Market Center book overnight. sec.gov. Please include File Number SR– Self-Regulatory Organizations; The As a general matter, Nasdaq cancels NYSEMKT–2014–112 on the subject NASDAQ Stock Market, LLC; Notice of open quotes/orders in the event of any line. Filing and Immediate Effectiveness of corporate action related to a dividend, Proposed Rule Change To Modify payment or distribution, on the ex-date Paper Comments Nasdaq’s Rule Governing Modification of the action. The cancellation occurs • Send paper comments in triplicate of Orders in the Event of an Issuer immediately prior to the opening of to Secretary, Securities and Exchange Corporate Action Related to a trading at 4 a.m. on the ex-date of the Commission, 100 F Street NE., Dividend, Payment or Distribution corporate action, and the member Washington, DC 20549–1090. December 31, 2014. receives a cancellation notice, so that it All submissions should refer to File Pursuant to Section 19(b)(1) of the can, if it desires, reenter the order at the Number SR–NYSEMKT–2014–112. This Securities Exchange Act of 1934 (the commencement of trading on the ex- ‘‘Act’’),1 and Rule 19b–4 thereunder,2 date. 24 For purposes only of waiving the operative notice is hereby given that on December Prior to 2013, Nasdaq Rule 4761 delay for this proposal, the Commission has provided for a complex variety of considered the proposed rule’s impact on efficiency, competition, and capital formation. See 26 17 CFR 200.30–3(a)(12). adjustments of quotes and orders carried 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1). on the Nasdaq book overnight; 25 15 U.S.C. 78s(b)(3)(C). 2 17 CFR 240.19b-4. depending on the nature of the

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corporate action, these adjustments of the sum of all dividends payable, As is currently the case, changes to might result in the cancellation of a rounded up to the nearest whole cent; open orders will continue to be effected quote/order or an adjustment of its price provided, however, that there will be no immediately prior to the opening of the and/or size to reflect the impact of the adjustment if the sum of all dividends System at 4:00 a.m. on the ex-date of the corporate action. In April 2013, Nasdaq is less than $0.01. For example, if the applicable corporate action. Open filed an amendment to the rule to sum of all dividends is $0.381, the price orders that are retained are re-entered by provide that Nasdaq would cancel all of the order will be reduced by $0.39. the System (as adjusted above) open quotes/orders in the event of any An order to sell will be retained but will immediately prior to the opening of the corporate action.3 The proposal receive no price adjustment. System, such that they will retain time reflected a conclusion that the rule was (2) Forward Stock Split. If an issuer is priority over new orders entered at or excessively complex and had given rise implementing a forward stock split, the after 4:00 a.m.9 Under the proposed rule to certain non-material discrepancies order is cancelled if its size is less than change, for corporate actions other than between the rule as written and its one round lot. If the order’s size is cash dividends, forward stock splits, application in Nasdaq’s systems. greater than one round lot, (i) the size and stock dividends (or any Subsequently, in response to member of the order is multiplied by the ratio of combination thereof), open orders are demand for assistance with order post-split shares to pre-split shares, with always cancelled, regardless of the port management with respect to certain the result rounded downward to the through which they were entered. common types of corporate action, nearest whole share, and (ii) the price of Nasdaq amended the rule again to offer the order will be multiplied by the ratio 2. Statutory Basis limited, optional functionality to allow of pre-split shares to post-split shares, Nasdaq believes that the proposed open orders to be adjusted, rather than with the result rounded down to the rule change is consistent with the cancelled.4 As written, the rule provides nearest whole penny in the case of provisions of Section 6 of the Act,10 in for the possibility of order adjustment in orders to buy and rounded up to the general, and with Section 6(b)(5) of the the case of cash dividends, forward nearest whole penny in the case of Act 11 in particular, in that the proposal stock splits, and combined cash orders to sell. is designed to prevent fraudulent and dividends/forward stock splits. Under the change proposed in this The proposal will expand the rule manipulative acts and practices, to filing, stock dividends will be treated in promote just and equitable principles of also to provide for adjustment in the the same manner as forward stock splits. case of stock dividends and combined trade, to foster cooperation and Thus, any corporate action in which coordination with persons engaged in cash dividends/stock dividends. The additional shares are issued to holders proposal reflects the conclusion, based regulating, clearing, settling, processing of outstanding shares will be treated in information with respect to, and on member feedback, that actions the manner described above. facilitating transactions in securities, to resulting in the distribution of For example, if a member has entered additional stock should be treated remove impediments to and perfect the a good-till-cancelled order to buy 375 mechanism of a free and open market similarly, regardless of whether they are shares at $10.95 per share and the issuer denominated as forward stock splits or and a national market system, and, in implemented a split or dividend under general, to protect investors and the stock dividends. Nasdaq will make which an additional 1.25 shares would members aware of the effective date of public interest. Specifically, Nasdaq be issued for each share outstanding, the believes that the change, which is the proposed change by the issuance of size of the order would be adjusted to a widely disseminated Equity Trader × responsive to member input, will 843 shares (375 2.25/1 = 843.75, facilitate transactions in securities and Alert. rounded down to 843) and the price of Under the current rule, a member may perfect the mechanism of a free and the order would be adjusted to $4.86 per designate that all orders with a time-in- open market by providing members share ($10.95 per share × 1/2.25 = force of good-till-cancelled 5 that are with additional optional functionality $4.8667 per share, rounded down to entered through one or more order entry that may assist them with order $4.86 per share). An order to sell at the ports specified by the member will be management with respect to stock same price and size would be adjusted processed in the manner specified dividends in a manner similar to the to 843 shares with a price of $4.87 per below.6 current functionality with respect to share ($4.8667 per share, rounded up).7 (1) Cash Dividend. If an issuer is cash dividends and forward splits. paying a cash dividend, the price of an (3) Combination of Cash Dividend and Because forward splits and stock order to buy is reduced by the amount Forward Stock Split or Stock Dividend. dividends both involve the distribution Under the current rule, if an issuer is of additional stock to current 3 Securities Exchange Act Release No. 69454 implementing a cash dividend and a stockholders, providing them with forward stock split on the same date, the (April 25, 2013), 78 FR 25506 (May 1, 2013) (SR– similar treatment under the rule is NASDAQ–2013–068). adjustments described above will both logical and may help to prevent 4 Securities Exchange Act Release No. 70113 be applied, in the order described in the (August 5, 2013), 78 FR 48746 (August 9, 2013) confusion on the part of members that (SR–NASDAQ–2013–096). notice of the corporate actions received 8 expect both types of corporate events to 5 by Nasdaq. Under the proposed rule Nasdaq notes that the use of good-till-cancelled receive consistent treatment. orders is not prevalent, accounting for significantly change, this provision is being less than 1% of all orders entered into Nasdaq. The expanded to cover stock dividends as 9 vast majority of orders expire by their terms at the well as forward stock splits. To the extent that multiple good-till-cancelled end of regular market hours. orders in a particular security are adjusted and re- 6 The member may opt for this processing on a entered, such orders may not retain the same time port-by-port basis. Thus, the provisions providing 7 Nasdaq is also amending the example in the rule priority vis-a`-vis one another that they had on the for order adjustment are applied to all good-till- text to make it clear that the prices provided therein preceding day. Rather, because such orders are cancelled orders entered through a port that has are per share prices. entered simultaneously through multiple order been specified by the member for such processing. 8 For securities listed on Nasdaq, Nasdaq receives entry ports, their relative priority is a function of Because members may obtain multiple ports, notice of corporate actions from the issuer and the duration of system processing associated with however, members may opt to apply different determines the applicable ex-date. See Rule 11140. each individual order. processing to different orders based on the ports For securities listed on other exchanges, Nasdaq 10 15 U.S.C. 78f. through which they are entered. receives notice from the listing exchange. 11 15 U.S.C. 78f(b)(5).

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B. Self-Regulatory Organization’s change is consistent with the Act. SECURITIES AND EXCHANGE Statement on Burden on Competition Comments may be submitted by any of COMMISSION the following methods: Nasdaq does not believe that the [Release No. 34–73975; File Nos. SR–FICC– proposed rule change will result in any Electronic Comments 2014–810; SR–NSCC–2014–811; SR–DTC– burden on competition that is not 2014–812] necessary or appropriate in furtherance • Use the Commission’s Internet of the purposes of the Act, as amended. comment form (http://www.sec.gov/ Self-Regulatory Organizations; Fixed Specifically, by offering market rules/sro.shtml); or Income Clearing Corporation; National Securities Clearing Corporation; The participants additional options with • Send an email to rule-comments@ regard to management of open orders, Depository Trust Company; Notice of sec.gov. Please include File Number SR– Extension of Review Period of the change has the potential to enhance NASDAQ–2014–126 on the subject line. Nasdaq’s competitiveness with respect Advance Notices, as Amended, To to other trading venues, thereby Paper Comments Amend and Restate the Third promoting greater competition. Amended and Restated Shareholders • Moreover, the change does not burden Send paper comments in triplicate Agreement, Dated as of December 7, competition in that it does not restrict to Brent J. Fields, Secretary, Securities 2005 and Exchange Commission, 100 F Street the ability of members to enter and December 31, 2014. NE., Washington, DC 20549–1090. update trading interest in Nasdaq. On November 5, 2014, Fixed Income C. Self-Regulatory Organization’s All submissions should refer to File Clearing Corporation (‘‘FICC’’), National Statement on Comments on the Number SR–NASDAQ–2014–126. This Securities Clearing Corporation Proposed Rule Change Received From file number should be included on the (‘‘NSCC’’), and The Depository Trust Members, Participants, or Others subject line if email is used. To help the Company (‘‘DTC,’’ together with FICC Commission process and review your and NSCC, ‘‘Operating Subsidiaries’’) No written comments were either comments more efficiently, please use filed with the Securities and Exchange solicited or received. only one method. The Commission will Commission (‘‘Commission’’) advance III. Date of Effectiveness of the post all comments on the Commission’s notices SR–FICC–2014–810, SR–NSCC– Proposed Rule Change and Timing for Internet Web site (http://www.sec.gov/ 2014–811 and SR–DTC–2014–812 Commission Action rules/sro.shtml). Copies of the (‘‘Advance Notices’’), pursuant to section 806(e)(1) of the Payment, Because the foregoing proposed rule submission, all subsequent Clearing, and Settlement Supervision change does not: (i) Significantly affect amendments, all written statements Act of 2010 (‘‘Clearing Supervision the protection of investors or the public with respect to the proposed rule Act’’) 1 and Rule 19b–4(n)(1)(i) under interest; (ii) impose any significant change that are filed with the the Securities Exchange Act of 1934 burden on competition; and (iii) become Commission, and all written (‘‘Exchange Act’’).2 On November 17, operative for 30 days from the date on communications relating to the 2014, the Operating Subsidiaries each which it was filed, or such shorter time proposed rule change between the filed Amendments No. 1 to the Advance as the Commission may designate, it has Commission and any person, other than Notices.3 On November 17, 2014, FICC become effective pursuant to Section those that may be withheld from the withdrew Amendment No. 1 and filed 19(b)(3)(A)(ii) of the Act 12 and public in accordance with the Amendment No. 2 to advance notice subparagraph (f)(6) of Rule 19b–4 provisions of 5 U.S.C. 552, will be SR–FICC–2014–810.4 The Advance thereunder.13 available for Web site viewing and At any time within 60 days of the printing in the Commission’s Public Notices were published for comment in filing of the proposed rule change, the Reference Room, 100 F Street NE., the Federal Register on December 11, 5 Commission summarily may Washington, DC 20549 on official 2014. As of December 31, 2014, the temporarily suspend such rule change if business days between the hours of Commission had not received any it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of such comment letters on the proposal action is: (i) Necessary or appropriate in filing also will be available for contained in the Advance Notices. Section 806(e)(1)(G) of the Clearing the public interest; (ii) for the protection inspection and copying at the principal Supervision Act provides that the of investors; or (iii) otherwise in office of the Exchange. All comments Operating Subsidiaries may implement furtherance of the purposes of the Act. received will be posted without change; the changes proposed in the Advance If the Commission takes such action, the the Commission does not edit personal Notices if they have not received an Commission shall institute proceedings identifying information from objection to the proposed changes to determine whether the proposed rule submissions. You should submit only within 60 days of the later of (i) the date should be approved or disapproved. information that you wish to make that the Commission receives the IV. Solicitation of Comments available publicly. All submissions Advance Notices or (ii) the date that any should refer to File Number SR– Interested persons are invited to NASDAQ–2014–126, and should be submit written data, views, and 1 12 U.S.C. 5465(e)(1). submitted on or before January 28, 2015. 2 17 CFR 240.19b–4(n)(1)(i). arguments concerning the foregoing, 3 For the Commission, by the Division of NSCC and DTC filed Amendment Nos. 1 to including whether the proposed rule provide additional description of the changes Trading and Markets, pursuant to delegated proposed in advance notices SR–NSCC–2014–811 14 12 15 U.S.C. 78s(b)(3)(a)(ii). authority. and SR–DTC–2014–812, respectively. 13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Brent J. Fields, 4 FICC withdrew Amendment No. 1 to advance 4(f)(6) requires a self-regulatory organization to give notice SR–FICC–2014–810 due to an error in filing the Commission written notice of its intent to file Secretary. the amendment. FICC filed Amendment No. 2 to the proposed rule change at least five business days [FR Doc. 2014–30971 Filed 1–6–15; 8:45 am] advance notice SR–FICC–2014–810 in order to provide additional description of the changes prior to the date of filing of the proposed rule BILLING CODE 8011–01–P change, or such shorter time as designated by the proposed in the advance notice. Commission. The Exchange has satisfied this 5 See Release No. 34–73755 (Dec. 5, 2014), 79 FR requirement. 14 17 CFR 200.30–3(a)(12). 73665 (Dec. 11, 2014).

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additional information requested by the notice of our intent to add a new routine use and update to the retention and Commission is received,6 unless use to, and update the retention and disposal section. extended as described below. disposal schedule of, an existing system Dated: December 11, 2014. Pursuant to section 806(e)(1)(H) of the of records entitled: Representative Kirsten J. Moncada, Clearing Supervision Act, the Disqualification, Suspension and Non- Commission may extend the review Executive Director, Office of Privacy and Recognition Information File, (60–0219). Disclosure, Office of the General Counsel. period of an advance notice for an This system was last published in the additional 60 days, if the changes Federal Register, 75 FR 25904 (May 10, Social Security Administration proposed in the advance notice raise 2010). The new routine use will allow SYSTEM NUMBER: 60–0219 novel or complex issues, subject to the broader disclosure to a bar disciplinary Commission providing the clearing authority, court, or administrative SYSTEM NAME: agency with prompt written notice of tribunal before the agency imposes Representative Disqualification, the extension.7 sanctions against a representative. The Suspension and Non-Recognition Here, as the Commission has not Office of General Counsel will use this Information File requested any additional information, new routine use to disclose records * * * * * the date that is 60 days after the regarding the agency’s investigation of Operating Subsidiaries filed the an attorney, as well as records regarding ROUTINE USES OF RECORDS COVERED BY THE Advance Notices with the Commission non-attorneys misrepresenting SYSTEM, INCLUDING CATEGORIES OF USERS AND THE PURPOSES OF SUCH USES: is January 4, 2015. However, the themselves as attorneys, and non- Commission finds it appropriate to attorneys continuing to practice despite * * * * * extend the review period of the non-recognition, suspension, or 17. To a Federal court, State court, Advance Notices, as amended, for an disqualification by the agency. The new administrative tribunal, bar disciplinary additional 60 days under section routine use will allow for broader authority or other authority, by the 806(e)(1)(H) of the Clearing Supervision disclosure of representative misconduct Office of the General Counsel, as 8 Act. The Commission finds the to promote the integrity of our necessary, to permit these authorities to Advance Notices, as amended, are both programs. The update to the retention investigate and conduct proceedings novel and complex because the material and disposal section is based on the relating to potential professional aspects of the proposed amendments to agency’s specific records schedules. The disciplinary actions or other measures the Shareholders Agreement are new routine use and update to the relating to the authorities’ regulation of substantial, a first for the Clearing retention and disposal section are professional conduct. Agencies, and are interrelated with described below. * * * * * other regulatory aspects of the Clearing Agencies. DATES: We invite public comment on RETENTION AND DISPOSAL: Accordingly, the Commission, this proposal. In accordance with 5 * * * * * pursuant to 806(e)(1)(H) of the Clearing U.S.C. 552a(e)(4) and (e)(11), the public We retain and destroy this Supervision Act,9 extends the review is given a 30-day period in which to information in accordance with period for an additional 60 days so that submit comments. Therefore, please National Archives and Records the Commission shall have until March submit any comments by February 6, Administration approved authorities. 5, 2015 to issue an objection or non- 2015. We will destroy those cases in which objection to the Advance Notices, as ADDRESSES: The public, Office of the agency receives an allegation of amended (File Nos. SR–FICC–2014–810, Management and Budget (OMB), and misconduct but determines that the SR–NSCC–2014–811, and SR–DTC– Congress may comment on this representative did not violate SSA’s 2014–812). publication by writing to the Executive Rules of Conduct and Standards of By the Commission. Director, Office of Privacy and Responsibility two years after the Brent J. Fields, Disclosure, Office of the General investigation ends, in accordance with Secretary. Counsel, Social Security SSA’s agency specific records schedule, Administration, Room 617 Altmeyer N1–047–10–004/I.E.1. We will destroy [FR Doc. 2014–30973 Filed 1–6–15; 8:45 am] all other cases 25 years after closure, in BILLING CODE 8011–01–P Building, 6401 Security Boulevard, Baltimore, Maryland 21235–6401 or accordance with N1–047–10–004/I.E.2. through the Federal e-Rulemaking Portal We will erase or destroy records in electronic form and shred records in SOCIAL SECURITY ADMINISTRATION at http://www.regulations.gov. All comments we receive will be available paper form. [Docket No. SSA–2014–0073] for public inspection at the above [FR Doc. 2014–30969 Filed 1–6–15; 8:45 am] address. BILLING CODE 4191–02–P Privacy Act of 1974, as Amended: Proposed New Routine Use and FOR FURTHER INFORMATION CONTACT: Updated Retention and Disposal Jasson Seiden, Government Information DEPARTMENT OF TRANSPORTATION Specialist, Privacy Implementation AGENCY: Social Security Administration Division, Office of Privacy and Federal Motor Carrier Safety (SSA). Disclosure, Office of the General Administration ACTION: Proposed New Routine Use and Counsel, Social Security Updated Retention and Disposal. Administration, Room 617 Altmeyer Sunshine Act Meetings; Unified Carrier Registration Plan Board of Directors SUMMARY: Pursuant to the Privacy Act of Building, 6401 Security Boulevard, Baltimore, Maryland 21235–6401, 1974, as amended, we are issuing public AGENCY: Federal Motor Carrier Safety telephone: (410) 597–4307, Email: Administration (FMCSA), DOT. [email protected]. 6 See 12 U.S.C. 5465(e)(1)(G). ACTION: Notice of Unified Carrier 7 In accordance with 5 U.S.C. 552a(r), See 12 U.S.C. 5465(e)(1)(H). Registration Plan Board of Directors 8 we have provided a report to OMB and Id. meeting. 9 Id. Congress on the proposed new routine

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TIME AND DATE: The meeting will be Issued on: December 30, 2014. permits from the Department of held on January 22, 2015, from 12:00 Larry W. Minor, Transportation’s Hazardous Material Noon to 3:00 p.m., Eastern Standard Associate Administrator, Office of Policy, Regulations (49 CFR part 107, subpart Time. Federal Motor Carrier Safety Administration. B), notice is hereby given of the actions PLACE: This meeting will be open to the [FR Doc. 2015–00094 Filed 1–5–15; 4:15 pm] on special permits applications in public via conference call. Any BILLING CODE 4910–EX–P (October to October 2014). The mode of interested person may call 1–877–422– transportation involved are identified by 1931, passcode 2855443940, to listen a number in the ‘‘Nature of DEPARTMENT OF TRANSPORTATION and participate in this meeting. Application’’ portion of the table below as follows: 1—Motor vehicle, 2—Rail STATUS: Open to the public. Pipeline and Hazardous Materials freight, 3—Cargo vessel, 4—Cargo Safety Administration MATTERS TO BE CONSIDERED: The aircraft only, 5—Passenger-carrying aircraft. Application numbers prefixed Unified Carrier Registration Plan Board Actions on Special Permit Applications of Directors (the Board) will continue its by the letters EE represent applications work in developing and implementing AGENCY: Office of Hazardous Materials for Emergency Special Permits. It the Unified Carrier Registration Plan Safety, Pipeline and Hazardous should be noted that some of the and Agreement and to that end, may Materials Safety Administration sections cited were those in effect at the consider matters properly before the (PHMSA), DOT. time certain special permits were Board. ACTION: Notice of actions on special issued. permit applications. FOR FURTHER INFORMATION CONTACT: Mr. Issued in Washington, DC, on December 8, Avelino Gutierrez, Chair, Unified SUMMARY: In accordance with the 2014. Carrier Registration Board of Directors at procedures governing the application Donald Burger, (505) 827–4565. for, and the processing of, special Chief, Special Permits and Approval Branch.

S.P. No. Applicant Regulation(s) Nature of special permit thereof

MODIFICATION SPECIAL PERMIT GRANTED

11150–M ...... Maine State Ferry Service Au- 49 CFR 172.101 and To modify the special permit to authorize cylinders having a gusta, ME. 172.301(c). water capacity exceeding 100 pounds. 9610–M ...... Alliant Techsystems Oper- 49 CFR 172.201(c), Subpart F To modify the special permit to authorize Class I smokeless ations LLC Eden Prairie, MN. of Part 172, 172.301(c), powder UN0161 in combination packaging. 172.203(a), 174.59, and 174.61(a). 14506–M ...... SLR International Corporation 49 CFR 173.4(a)(1)(i), To modify the special permit to authorize inner packagings Bothell, WA. 173.4a(c) and (d). without the removable closure secured in place, and all shipments not necessarily be packaged identically but similarly. 15448–M ...... U.S. Department of Defense 49 CFR 172.320, 173.51, To modify the special permit to authorize packagings that Scott AFB, IL. 173.56, 173.57 and 173.58. have not been specifically approved. 14919–M ...... TK Holdings Inc. Armada, MI .. 49 CFR 173.301(a), 173.302a, To modify the special permit to remove the specifications for and 178.65(f)(2). cylinder sizes and water capacities. 14447–M ...... Taminco US Inc Allentown, PA 49 CPR 177.834(i), To modify the special permit to authorize the addition of Divi- 172.203(a), and 172.302(c). sion 2.1, new Division 6.1, and new Class 3 and 8 materials.

NEW SPECIAL PERMIT GRANTED

16218–N ...... Mountain Blade Runner, LLC 49 CFR 172.101, Column To authorize the transportation in commerce of certain haz- Montrose, CO. (9B), 172.204(c)(3), ardous materials by 14 CFR part 133. Rotorcraft External 173.27(6)(2), 175.30(a)(1) Load Operations transporting hazardous materials attached 172.200, 172.301(c), Part to or suspended from an aircraft, in remote areas of the US 178 and 175.75. only, without being subject to hazard communication requirements, quantity limitations and certain loading and stowage requirements. (mode 4). 16267–N ...... Korean Air Los Angeles, CA ... 49 CFR 172.101 Column (9B), To authorize the one-time transportation in commerce of cer- 172.204(c)(3), 173.27, and tain explosives that are forbidden for transportation by 175.30(a)(1). cargo only aircraft. (mode 4). 15955–N ...... Thompson Tank, Inc. Lake- 49 CFR 173.315 ...... To authorize the manufacture, marking, sale and use of non- wood, CA. DOT specification cargo tanks manufactured to ASME Sec- tion XII stamped with a ‘‘T’’ Stamp instead of the ‘‘U’’ stamp. (mode 1). 1597I–N ...... National Aeronautics and 49 CFR 173.301(a)(1), To authorize the transportation in commerce of non-DOT Space Administration 173.301(a)(2), 173.301(0(1, specification pressure receptacles containing nitrogen, (NASA) Houston, TX. 173.302(a) and 173.302a(a). compressed. (modes 1, 2, 3, 4). 15973–N ...... Codman & Shurtleff, Inc. 49 CFR parts 171–180...... To authorize the transportation in commerce of small Raynham, MA. amounts of butane contained within a Medstream Pump as unregulated. (modes 4, 5).

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S.P. No. Applicant Regulation(s) Nature of special permit thereof

16022–N ...... Zhejiang Juhua Equipment 49 CFR 178.274(b), To authorize the manufacture, marking, sale and use of non- Manufacturing Co., Ltd. 178.276(6)(1) and DOT specification portable tanks mounted within an ISO Quzhou, Zhejiang. 178.276(a)(2). frame that have been designed, constructed and stamped in accordance with Section VIII, Division 2 of the ASME Code. (modes 1, 2, 3). 16103–N ...... Insituform Technologies, LLC 49 CFR 173.203 and 173.242 To authorize the transportation in commerce of resin-impreg- Chesterfield, MO. nated, coated polyester felt tubing used as a means of re- storing structural integrity to aging or damaged wastewater, potable water and industrial pipelines through use of a trenchless, cured-in-place pipe (‘‘CIPP’’) technology. (mode 1). 16142–N ...... Nantong CIMC Tank Equip- 49 CFR 178.274(6) and To authorize the manufacture, marking, sale and use of UN ment Co. Ltd. Jiangsu, Prov- 178.276(6)(1). T75 Code portable tanks that are designed, constructed, ince. certified and stamped in accordance with Section VIII Divi- sion 1, latest edition of the ASME Code. (modes 1, 2, 3). 16163–N ...... The Dow Chemical Company 49 CFR 180.605(h)(3) ...... To authorize that the required 5 year periodic pressure test Midland, MI. on UN portable tanks used in the transport of a Division 4.3 material be performed pneumatically (with nitrogen) rather than with water. (modes 1, 2, 3, 4). 16172–N ...... Entegris, Inc. Danbury, CT ..... 49 CFR 173.301(f) ...... To authorize the transportation in commerce of a Zone B toxic by inhalation gas in a DOT3AA cylinder that is fitted with an alternative pressure relief device. (modes 1, 3). 16178–N ...... National Aeronautics and 49 CFR 173.302a ...... To authorize the transportation in commerce of compressed Space Administration gases in non-DOT specification cylinders. (modes 1, 3). (NASA) Washington, DC.

EMERGENCY SPECIAL PERMIT GRANTED

16108–M ...... Carleton Technologies Inc. 49 CFR 173.302a, 173.304a To modify the special permit to bring it in line with SIO Westminster, MD. and 180.205. 11119–2 and DOT–SP 14756. (modes 1, 2, 3, 4, 5). 15999–M ...... National Aeronautics and 49 CFR parts 172 and 173 ..... To modify the special permit by adding a Division 1.4S mate- Space Administration rial (modes 1, 3). (NASA) Washington, DC. 16263–M ...... Kalitta Air, LLC Ypsilanti, MI ... 49 CFR 172.101 Column (9B), (mode 4). 172.204(c)(3), 173.27(b)(2) and (3) and 175.30(a)(1). 16263–M ...... Kalitta Air, LLC Ypsilanti, MI ... 49 CFR 172.101 Column (9B), (mode 4). 172.204(c)(3), 173.27(b)(2) and (3) and 175.30(a)(1). 16219–N ...... Structural Composites Indus- 49 CFR 173.302a and To authorize the manufacture, marking, sale and use of alu- tries (SCI) Pomona, CA. 173.304a. minum-lined carbon-fiber composite cylinders for use in transporting certain Division 2.1 and 2.2 hazardous materials. (modes 1, 2, 3, 4). 16311–N ...... Raytheon Missile Systems 49 CFR 172.101 Column (9B), To authorize the offering in air transportation of certain Class Tucson, AR. 172.204(c)(3), 173.27(b)(2) I explosives which are forbidden or exceed the quantity lim- and (3). itations authorized for transportation by cargo aircraft. (mode 4). 16170–N ...... Hydro Stat LLC Holly, MI ...... 49 CFR 180.213(b)(2) ...... To authorize the removal of certain requalification markings from DOT–3AL cylinders that have previously been re- tested in accordance with DOT–SP 14546 or DOT–SP 14854, to allow them to be returned to a 5 year hydrostatic retest schedule and eliminate the need for quality control for the gases to be used. (modes 1, 2, 3, 4, 5).

DENIED

16289–N ...... Request by NYS Department of Environmental Conservation Albany, NY November 21, 2014. To authorize the transportation in commerce of ebola contaminated waste in alternative packaging.

[FR Doc. 2014–30546 Filed 1–6–15; 8:45 am] DEPARTMENT OF THE TREASURY SUMMARY: The Treasury Department’s BILLING CODE 4910–60–M Office of Foreign Assets Control (OFAC) Office of Foreign Assets Control is publishing the names of 9 persons whose property and interests in Sanctions Actions Pursuant to property are blocked pursuant to one or Executive Orders more of the following authorities: Executive Order (E.O.) 13553, E.O. AGENCY: Office of Foreign Assets 13622, or E.O. 13628. OFAC is also Control, Treasury Department. publishing revised information on ACTION: Notice. OFAC’s list of Specially Designated

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Nationals and Blocked Persons (SDN Information—Subject to Secondary Former Vessel Flag Tanzania; Vessel List) for 30 vessels identified as blocked Sanctions; Passport A5190428 (Iran) Registration Identification IMO 9405930 property of one or more persons whose (individual) [EO13622]. (vessel) [NPWMD]. property and interests in property are 6. ARVIN (f.k.a. BLUEBELL; f.k.a. Entity EGLANTINE; f.k.a. IRAN GILAN) Bulk blocked pursuant to EO 13382. 1. BELFAST GENERAL TRADING LLC, Carrier 63,400DWT 39,424GRT Iran flag DATES: OFAC’s actions described in this Room 1602 Twin Tower Building, Baniyas (IRISL); Former Vessel Flag Bolivia; Vessel notice were effective December 30, Rd, Dubai, United Arab Emirates [EO13622]. Registration Identification IMO 9193202 2014. (vessel) [NPWMD]. On December 30, 2014, OFAC blocked 7. AVANG (f.k.a. CHAPLET; f.k.a. IRAN FOR FURTHER INFORMATION CONTACT: the property and interest in property of RAHIM; f.k.a. RAHIM) Bulk Carrier Associate Director for Global Targeting, the following 1 person pursuant to E.O. 53,100DWT 31,117GRT Iran flag (IRISL); tel.: 202/622–2420, Assistant Director 13553, ‘‘Blocking Property of Certain Former Vessel Flag Malta; Vessel Registration for Sanctions Compliance & Evaluation, Persons With Respect to Serious Human Identification IMO 9465746 (vessel) tel.: 202/622–2490, Assistant Director Rights Abuses by the Government of [NPWMD]. for Licensing, tel.: 202/622–2480, Office Iran and Taking Certain Other Actions.’’ 8. AZARGOUN (f.k.a. ARMIS; f.k.a. IRAN of Foreign Assets Control, or Chief ZANJAN; f.k.a. VISEA) Container Ship Entity 33,850DWT 25,391GRT Iran flag (IRISL); Counsel (Foreign Assets Control), tel.: Former Vessel Flag Tanzania; Vessel 202/622–2410, Office of the General 1. ABYSSEC, Madar Square, Boulvar-e- Registration Identification IMO 9283019 Counsel, Department of the Treasury Mirdamad, Tehran, Iran; Additional (vessel) [NPWMD]. (not toll free numbers). Sanctions Information—Subject to Secondary 9. BAHJAT (f.k.a. BAANI) Bulk Carrier Sanctions [IRAN–HR]. SUPPLEMENTARY INFORMATION: 53,500DWT 32,474GRT Iran flag (IRISL); On December 30, 2014, OFAC blocked Former Vessel Flag Moldova; Vessel Electronic and Facsimile Availability the property and interest in property of Registration Identification IMO 9405954 The SDN List and additional the following 1 person pursuant to E.O. (vessel) [NPWMD]. 10. BASKAR (f.k.a. AALI) Bulk Carrier information concerning OFAC sanctions 13628, ‘‘Authorizing the 53,500DWT 32,474GRT Iran flag (IRISL); programs are available from OFAC’s Implementation of Certain Sanctions Set Former Vessel Flag Moldova; Vessel Web site (www.treas.gov/ofac). Certain Forth in the Iran Threat Reduction and Registration Identification IMO 9405942 general information pertaining to Syria Human Rights Act of 2012 and (vessel) [NPWMD]. OFAC’s sanctions programs is also Additional Sanctions With Respect to 11. BATIS (f.k.a. AZIM; f.k.a. CHAPMAN; available via facsimile through a 24- Iran.’’ f.k.a. IRAN AZIM) Bulk Carrier 53,100DWT hour fax-on-demand service, tel.: 202/ 31,117GRT Iran flag (IRISL); Former Vessel 622–0077. Entity Flag Malta; Vessel Registration Identification IMO 9465760 (vessel) [NPWMD]. 1. DOURAN SOFTWARE 12. BEHDAD (f.k.a. BRILLIANCE; f.k.a. Notice of OFAC Actions TECHNOLOGIES, Gha’em Magham Farahani CLOVER; f.k.a. DORITA; f.k.a. IRAN St., Sho’a Square, Khadri St, Block 20, On December 30, 2014, OFAC blocked BRILLIANCE; f.k.a. MULBERRY) General Tehran, Iran; Additional Sanctions the property and interest in property of Cargo 24,065DWT 16,621GRT Iran flag Information—Subject to Secondary Sanctions the following 7 persons pursuant to E.O. (IRISL); Former Vessel Flag Bolivia; Vessel [IRAN–TRA]. 13622, ‘‘Authorizing Additional Registration Identification IMO 9051636 Sanctions With Respect to Iran.’’ On December 30, 2014, OFAC (vessel) [NPWMD]. published revised information on the 13. BEHSHAD (f.k.a. BLANCA; f.k.a. Individuals SDN List to reflect new names or other LIMNETIC; f.k.a. MAGNOLIA; f.k.a. SEA 1. AMERI, Teymour (a.k.a. AMERI, information for 30 vessels previously FLOWER) General Cargo 23,176DWT Teymur; a.k.a. BARAKI, Teimur Ameri; a.k.a. identified as blocked property of one or 16,694GRT Iran flag (IRISL); Former Vessel BARAKY, Teymur Ameri; a.k.a. BARKI, Flag Bolivia; Vessel Registration more persons whose property or Identification IMO 9167289 (vessel) Teymur Ameri); DOB 12 Jul 1958 interests in property are blocked (individual) [EO13622]. [NPWMD]. 2. SEIFI, Asadollah (a.k.a. SAYFI, Esdaleh; pursuant to E.O. 13382. 14. ELYANA (f.k.a. EVITA; f.k.a. a.k.a. SEIFY, Asadollah); DOB 04 Apr 1965 1. ARDAVAN (f.k.a. CHAPAREL; f.k.a. GOLDENROD; f.k.a. IRAN LUCKY LILY; (individual) [EO13622]. HAKIM; f.k.a. IRAN HAKIM) Bulk Carrier f.k.a. LUCKY LILY) General Cargo 3. YASINI, Seyed Kamal (a.k.a. YASINI, 53,100DWT 31,117GRT Iran flag (IRISL); 22,882DWT 15,670GRT Iran flag (IRISL); Sayyed Kamal; a.k.a. YASINI, Seyyed Former Vessel Flag Moldova; Vessel Former Vessel Flag Bolivia; Vessel Kamal); DOB 23 Sep 1956; nationality Iran; Registration Identification IMO 9465863 Registration Identification IMO 9165827 Additional Sanctions Information—Subject (vessel) [NPWMD]. (vessel) [NPWMD]. to Secondary Sanctions; Passport H95629553 2. ARIES (f.k.a. ELVIRA; f.k.a. FILBERT; 15. GOLAFRUZ (f.k.a. DIANTHE; f.k.a. (Iran); National ID No. 1229838619 f.k.a. GRACEFUL) Bulk Carrier 76,000DWT HORSHAM; f.k.a. IRAN BAM) Bulk Carrier (individual) [EO13622]. 41,226GRT Iran flag (IRISL); Former Vessel 73,664DWT 40,166GRT Iran flag (IRISL); 4. ZEIDI, Hossein (a.k.a. ZEIDI, Hosein; Flag Bolivia; Vessel Registration Former Vessel Flag Barbados; Vessel a.k.a. ZEIDI, Hossein Mansour); DOB 11 Sep Identification IMO 9369722 (vessel) Registration Identification IMO 9323833 1965; citizen Saint Kitts and Nevis; citizen [NPWMD]. (vessel) [NPWMD]. Saint Vincent and the Grenadines; Former 3. ARSHAM (f.k.a. CHASTITY; a.k.a. IRAN 16. GOLSAR (f.k.a. CARMELA; f.k.a. IRAN Citizenship Country Iran; Passport SHAAFI; a.k.a. SHAAFI) Bulk Carrier AZARBAYJAN; f.k.a. NAFIS; f.k.a. ZAWA) RE0003553 (Saint Kitts and Nevis); National 53,000DWT 32,474GRT Iran flag (IRISL); Bulk Carrier 72,642DWT 39,424GRT Iran flag ID No. 444169 (United Arab Emirates) Former Vessel Flag Malta; Vessel Registration (IRISL); Former Vessel Flag Bolivia; Vessel (individual) [EO13622]. Identification IMO 9386500 (vessel) Registration Identification IMO 9193185 5. QULANDARY, Azizullah Asadullah [NPWMD]. (vessel) [NPWMD]. (a.k.a. QALANDARI, Azizabdullah); DOB 06 4. ARTAVAND (f.k.a. DORSAN; f.k.a. 17. GULAFSHAN (f.k.a. ATLANTIC; f.k.a. May 1978; POB Ghazni, Afghanistan; citizen IRAN KHORASAN; f.k.a. KHORASAN) Bulk DREAMLAND; f.k.a. IRAN DREAMLAND) Afghanistan; Passport OR306200 Carrier 72,622DWT 39,424GRT Iran flag Bulk Carrier 43,302DWT 25,770GRT Iran flag (Afghanistan); National ID No. 83669179 (IRISL); Former Vessel Flag Malta; Vessel (IRISL); Former Vessel Flag Hong Kong; (United Arab Emirates) (individual) Registration Identification IMO 9193214 Vessel Registration Identification IMO [EO13622]. (vessel) [NPWMD]. 8320183 (vessel) [NPWMD]. 6. NASIRBEIK, Anahita; DOB 10 Jan 1983; 5. ARTMAN (f.k.a. BAAGHI) Bulk Carrier 18. JAIRAN (f.k.a. CAMELLIA; f.k.a. nationality Iran; Additional Sanctions 53,457DWT 32,474GRT Iran flag (IRISL); CATALINA; f.k.a. IRAN SEA BLOOM; f.k.a.

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LODESTAR; f.k.a. SEA BLOOM) General Identification IMO 9165839 (vessel) 43,406DWT 25,768GRT Iran flag (IRISL); Cargo 23,176DWT 16,694GRT Iran flag [NPWMD]. Former Vessel Flag Hong Kong; Vessel (IRISL); Former Vessel Flag Bolivia; Vessel 23. NESHAT (f.k.a. BEGONIA; f.k.a. IRAN Registration Identification IMO 8309696 Registration Identification IMO 9167291 PRETTY SEA (KHUZESTAN); f.k.a. (vessel) [NPWMD]. (vessel) [NPWMD]. LAVENDER; f.k.a. PRETTY SEA) General 28. TABANDEH (f.k.a. ATRIUM; f.k.a. 19. KIAZAND (f.k.a. CHARIOT; f.k.a. IRAN Cargo 23,116DWT 16,694GRT Iran flag IRAN HAMZEH) Bulk Carrier 43,288DWT KARIM; f.k.a. KARIM) Bulk Carrier (IRISL); Former Vessel Flag Moldova; Vessel 25,770GRT Iran flag (IRISL); Former Vessel 53,100DWT 31,117GRT Iran flag (IRISL); Registration Identification IMO 9167277 Flag Hong Kong; Vessel Registration Former Vessel Flag Malta; Vessel Registration (vessel) [NPWMD]. Identification IMO 8320171 (vessel) Identification IMO 9465758 (vessel) 24. PARSHAD (f.k.a. CHIMES; f.k.a. IRAN [NPWMD]. [NPWMD]. VAAFI; f.k.a. VAAFI) Bulk Carrier 29. TERMEH (f.k.a. ACENA; f.k.a. 20. MAHNAM (f.k.a. ATENA; f.k.a. 53,000DWT 32,474GRT Iran flag (IRISL); CELESTINA; f.k.a. IRAN KERMANSHAH) CONSUELO; f.k.a. IRAN YAZD; f.k.a. Former Vessel Flag Tanzania; Vessel Bulk Carrier 75,249DWT 40,609GRT Iran flag LANCELIN) Bulk Carrier 72,642DWT Registration Identification IMO 9387786 (IRISL); Former Vessel Flag Bolivia; Vessel 40,609GRT Iran flag (IRISL); Former Vessel (vessel) [NPWMD]. Registration Identification IMO 9213399 Flag Bolivia; Vessel Registration 25. RONAK (f.k.a. ANIL; f.k.a. DANDY; (vessel) [NPWMD]. Identification IMO 9213387 (vessel) f.k.a. IRAN DANDY) Bulk Carrier 43,279DWT 30. WARTA (f.k.a. ALIM; f.k.a. [NPWMD]. 25,768GRT Iran flag (IRISL); Former Vessel 21. NAGHMEH (f.k.a. APOLLO; f.k.a. IRAN Flag Hong Kong; Vessel Registration CHAIRMAN; f.k.a. IRAN ALIM) Bulk Carrier DESTINY; f.k.a. IRAN NAVAB) Bulk Carrier Identification IMO 8320157 (vessel) 53,100DWT 31,117GRT Iran flag (IRISL); 43,329DWT 25,768GRT Iran flag (IRISL); [NPWMD]. Former Vessel Flag Tanzania; Vessel Former Vessel Flag Hong Kong; Vessel 26. SHABGOUN (f.k.a. ALVA; f.k.a. IRAN Registration Identification IMO 9465849 Registration Identification IMO 8320145 SABALAN; f.k.a. SABALAN) Container Ship (vessel) [NPWMD]. (vessel) [NPWMD]. 66,900DWT 53,453GRT Iran flag (IRISL); Dated: December 30, 2014. 22. NEGAR (f.k.a. ELICIA; f.k.a. Former Vessel Flag Sierra Leone; Vessel Adam J. Szubin, GARLAND; f.k.a. IRAN LUCKY MAN; f.k.a. Registration Identification IMO 9346524 Director, Office of Foreign Assets Control. LUCKY MAN) General Cargo 22,882DWT (vessel) [NPWMD]. 15,670GRT Iran flag (IRISL); Former Vessel 27. SHADFAR (f.k.a. ADMIRAL; f.k.a. [FR Doc. 2015–00028 Filed 1–6–15; 8:45 am] Flag Bolivia; Vessel Registration DAIS; f.k.a. IRAN DAIS) Bulk Carrier BILLING CODE 4810–AL–P

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Part II

Office of Personnel Management

5 CFR Part 890 48 CFR Parts 1602, 1615, and 1652 Federal Employees Health Benefits Program; Proposed Rules

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OFFICE OF PERSONNEL 111–152, was enacted on March 30, Since the TCR premium does not MANAGEMENT 2010 (these are collectively known as necessarily reflect the experience of a the ‘‘Affordable Care Act’’). In April specific group, an FEHB specific MLR 48 CFR Parts 1602, 1615, and 1652 2012, OPM issued a final rule requirement is not appropriate. RIN 3206–AN00 establishing an FEHB specific MLR However, if a State-mandated TCR requirement to replace the SSSG carrier has no other groups that are TCR, Federal Employees Health Benefits comparison requirement for most and therefore no SSSG, the carrier will Program; Rate Setting for Community- community rated FEHB plans (77 FR be subject to the FEHB specific MLR Rated Plans 19522). The FEHB specific MLR rules requirements. In that situation, applying are based on the medical loss ratio the FEHB specific MLR requirement is AGENCY: U.S. Office of Personnel standard established by the Affordable appropriate. Management. Care Act and defined by the U.S. ACTION: Notice of proposed rulemaking. Department of Health and Human Definition of Entities Included for SSSG Services, the U.S. Department of Labor, Comparison SUMMARY: The U.S. Office of Personnel and the U.S. Department of Treasury in This proposed regulation identifies Management (OPM) is issuing a Notice 26 CFR part 54, 29 CFR part 2590, 45 which SSSGs are available for of Proposed Rulemaking to make CFR part 146, and 45 CFR part 158. comparison under 48 CFR 1602.170–13. changes to the Federal Employees Community-rated FEHB plans were A subscriber group purchasing Health Benefits Acquisition Regulation permitted to elect to follow the FEHB healthcare benefits from an entity may (FEHBAR). These changes would: specific MLR requirements instead of be an SSSG if the entity is the carrier, Define which subscriber groups may be the SSSG requirements for calendar year a division or subsidiary of the carrier, a included for consideration as similarly 2012. Beginning with the 2013 calendar separate line of business or qualified sized subscriber groups (SSSGs); require year, the FEHB specific MLR separate line of business of the carrier, the SSSG to be traditional community requirements were mandatory for all or if the entity maintains a contractual rated; establish that traditional community-rated carriers except those arrangement with the carrier to provide community-rated Federal Employees that are State-mandated to use healthcare benefits. If the entity is any Health Benefits (FEHB) plans must traditional community rating (TCR). of the preceding, any of its subscriber select only one rather than two SSSGs; State mandated TCR plans will continue groups may be included as an SSSG so and make conforming changes to FEHB to be subject to the SSSG comparison long as the entity reports financial contract language to account for the new requirements. statements on a consolidated basis with medical loss ratio (MLR) standard for the carrier or shares, delegates, or most community-rated FEHB plans. Provisions of This Proposed Regulation otherwise contracts with the carrier, any This proposed rule makes three DATES: Comments are due on or before portion of its workforce that involves changes to the requirements for SSSGs. March 9, 2015. the management, design, pricing, or In the past, OPM has required that plans ADDRESSES: Send written comments to marketing of the healthcare product. Delon Pinto, Senior Policy Analyst, identify two non-FEHB subscriber Planning and Policy Analysis, U.S. groups (employer groups covered by an Conforming Changes Due to MLR-Based Office of Personnel Management, Room issuer) that are closest in size to the FEHB Rate Requirements 4312, 1900 E Street NW., Washington, FEHB group and, if either or both of those groups received a discounted rate, The FEHBAR contains language DC; or FAX to (202) 606–4640 Attn: required in all FEHB contracts with Delon Pinto. You may also submit the carrier must provide the largest discount to FEHB. This proposed rule health insurance carriers. In the April 2, comments using the Federal 2012 final rule, OPM did not update all eRulemaking Portal: http:// defines the entities whose groups may be selected for comparison as an SSSG. of the FEHBAR contract language to www.regulations.gov. Follow the account for the new FEHB-specific MLR instructions for submitting comments. In addition, this rule states any SSSG must also be rated TCR in order to requirement. Omitted from that FOR FURTHER INFORMATION CONTACT: maintain alignment between the TCR- regulation were some changes, Delon Pinto, Senior Policy Analyst, at rated FEHB group and the subscriber described below, to 48 CFR 1652.215– [email protected] or (202) 606– group used for comparison. Last, OPM 70, ‘‘Rate Reduction for Defective 0004. is requiring plans to identify one, rather Pricing or Defective Cost or Pricing SUPPLEMENTARY INFORMATION: The U.S. than two, SSSG subscriber groups used Data,’’ to account for the new rules. Office of Personnel Management is for the comparison. OPM considers it 48 CFR 1652.215–70 describes how a issuing a notice of proposed rulemaking unnecessary to require more than one contracting officer at OPM may make an to update the Federal Employees Health comparison group if the SSSG must also offset from premiums if pricing or cost Benefits Acquisition Regulation to be rated TCR for the reasons set forth and pricing data are defective. This accommodate the new FEHB specific below. proposed rule adds a provision stating medical loss ratio (MLR) requirement TCR plans are those that, usually by that such an offset can be made if a for most community-rated plans as well State law, are required to set the same Carrier, which is not mandated by the as to update the similarly sized rates for all subscriber groups regardless State to use traditional community subscriber group (SSSG) requirement for of the health risks and other rating, has developed FEHB rates traditional community-rated plans. characteristics of any specific group. inconsistent with the FEHB-specific Under TCR, an FEHB group must be MLR requirement. This proposed rule Background on Federal Employees charged the same premium as all other also adds a provision that simple Health Benefits Rate-Setting for groups in its service area that receive interest must be paid to the Government Community Rated Plans the same set of benefits. The health plan when an MLR penalty is assessed as a The Patient Protection and Affordable cannot adjust premiums for a specific result of an audit finding by the OPM Care Act, Pub. L. 111–148, was enacted group to reflect the healthcare Office of the Inspector General (OIG). on March 23, 2010; the Health Care and utilization characteristics of that This is not a policy change, but a Education Reconciliation Act, Pub. L. specific group. conforming change so all FEHB

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contracts account for the new FEHB- because there will be no increased costs (1) An entity’s subscriber groups may specific MLR requirement. to Federal agencies, Federal Employees, be included as an SSSG if the entity is The April 2, 2012 final rule included or Federal retirees in their health any of the following: two different ‘‘Certificates of accurate insurance premiums. (i) The carrier; cost or pricing data’’ in 48 CFR (ii) A division or subsidiary of the 1615.406–2: One for SSSG pricing, and Federalism carrier; one for MLR pricing. Previously there We have examined this rule in was only one certificate for all carriers. accordance with Executive Order 13132, (iii) A separate line of business or This proposed rule changes some Federalism, and have determined that qualified separate line of business of the references from ‘‘certificate’’ to this rule will not have any negative carrier; or ‘‘certificates’’ to reflect this change. impact on the rights, roles, and (iv) An entity that maintains a responsibilities of State, local, or tribal contractual arrangement with the carrier Technical Corrections governments. to provide healthcare benefits. This proposed rule includes two (2) A subscriber group covered by an technical corrections that correct List of Subjects in 48 CFR Parts 1602, 1615, and 1652 entity meeting any of the criteria under inadvertent errors from earlier paragraph (b)(1) of this section may be amendments to chapter 16 of the Government employees, Government included for comparison as a SSSG if FEHBAR. procurement, Health insurance, the entity meets any of the following In the June 2011 interim final rule, the Reporting and recordkeeping criteria: word ‘‘issuer’’ was used erroneously in requirements. (i) It reports financial statements on a place of the word ‘‘carrier’’ in two U.S. Office of Personnel Management. consolidated basis with the carrier; or places. Per chapter 89 title 5 U.S. Code, Katherine Archuleta, OPM is authorized to contract with (ii) Shares, delegates, or otherwise Director. carriers. This technical correction is contracts with the carrier, any portion of For the reasons set forth in the made in 48 CFR 1602.170–14(a) and its workforce that involves the preamble, OPM proposes to amend 1652.216–70(b)(2)(i). management, design, pricing, or chapter 16 of title 48 CFR (FEHBAR) as This proposed rule also clarifies, in 48 marketing of the healthcare product. follows: CFR 1652.216–70(b), how community- (c) The following groups must be rated carriers must develop their FEHB TITLE 48—FEDERAL ACQUISITION excluded from SSSG consideration: rates. Previously, this section REGULATIONS SYSTEM (1) Groups the carrier rates by the erroneously stated that carriers should CHAPTER 16—OFFICE OF PERSONNEL method of retrospective experience ‘‘base their rating methodology on the MANAGEMENT FEDERAL EMPLOYEES rating; MLR threshold.’’ The corrected language HEALTH BENEFITS ACQUISITION (2) Groups consisting of the carrier’s states that all community-rated plans REGULATION own employees; must develop the FEHB’s rates using Subchapter A—General (3) Medicaid groups, Medicare-only their State-filed rating methodology or, groups, and groups that receive only if not required to file with the State, PART 1602—DEFINITIONS OF WORDS excepted benefits as defined at section their standard written and established AND TERMS 9832(c) of title 26, United States Code; rating methodology. ■ 1. The authority citation for part 1602 (4) A purchasing alliance whose rate- Regulatory Flexibility Act continues to read as follows: setting is mandated by the State or local government; OPM certifies that this regulation will Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); not have a significant economic impact 48 CFR 1.301. (5) Administrative Service on a substantial number of small entities Organizations (ASOs); ■ 2. Revise 1602.170–13 to read as because the regulation only affects follows: (6) Any other group excluded from health insurance carriers in the FEHB consideration as specified in the rate Program. 1602.170–13 Similarly sized subscriber instructions issued by OPM. groups. Executive Order 12866, Regulatory (d) OPM shall determine the FEHBP Review (a) A Similarly sized subscriber group rate by selecting the lowest rate derived (SSSG) is a non-FEHB employer group This rule has been reviewed by the by using rating methods consistent with that: those used to derive the SSSG rate. Office of Management and Budget in (1) As of the date specified by OPM (e) In the event that a State-mandated accordance with Executive Order 12866. in the rate instructions, has a subscriber TCR carrier has no SSSG, then it will be OPM has examined the impact of this enrollment closest to the FEHBP subject to the FEHB specific MLR proposed rule as required by Executive subscriber enrollment; Order 12866 and Executive Order (2) Uses traditional community rating; requirement. 13563, which direct agencies to assess and ■ 3. Revise 1602.170–14(a) to read as all costs and benefits of available (3) Meets the criteria specified in the follows: regulatory alternatives and, if regulation rate instructions issued by OPM. 1602.170–14 FEHB-specific medical loss is necessary, to select regulatory (b) Any group with which an entity ratio threshold calculation. approaches that maximize net benefits enters into an agreement to provide (including potential economic, health care services is a potential SSSG Medical Loss Ratio (MLR) means the environmental, public, health, and (including groups that are traditional ratio of plan incurred claims, including safety effects, distributive impacts, and community rated and covered by the carrier’s expenditures for activities equity). A regulatory impact analysis separate lines of business, government that improve health care quality, to total must be prepared for major rules with entities, groups that have multi-year premium revenue determined by OPM, economically significant effects of $100 contracts, and groups having point-of- as defined by the Department of Health million or more in any one year. This service products) except as specified in and Human Services in 45 CFR part 158. rule is not considered a major rule paragraph (c) of this section. * * * * *

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Subchapter C—Contracting Methods and (including discounts) the carrier used (a) If any rate established in Contract Types for the SSSG. connection with this contract was increased because: PART 1615—CONTRACTING BY * * * * * (4) Contracts will be subject to a (1) The Carrier submitted, or kept in NEGOTIATION downward price adjustment if OPM its files in support of the FEHBP rate, ■ 4. The authority citations for part determines that the Federal group was cost or pricing data that were not 1615 continue to read as follows: charged more than it would have been complete, accurate, or current as certified in one of the Certificates of Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); charged using a methodology consistent 48 CFR 1.301. with that used for the similarly-sized Accurate Cost or Pricing Data (FEHBAR subscriber group (SSSG). Such 1615.406–2); ■ 5. In 1615.402, revise paragraphs adjustments will be based on the rate (2) The Carrier submitted, or kept in (c)(2), (c)(3)(i)(A) and (B), and (c)(4) to determined by using the methodology its files in support of the FEHBP rate, read as follows: (including discounts) the carrier used cost or pricing data that were not 1615.402 Pricing policy. for the SSSG. accurate as represented in the rate * * * * * * * * * * reconciliation documents or MLR (c) * * * ■ 6. In 1615.406–2, revise the section Calculation; (2) For contracts with fewer than heading and the first certificate to read (3) The Carrier developed FEHBP 1,500 enrollee contracts for which the as follows: rates for traditional community-rated FEHB Program premiums for the plans with a rating methodology and 1615.406–2 Certificates of accurate cost or structure inconsistent with that used to contract term will be at or above the pricing data for community-rated carriers. threshold at FAR 15.403–4(a)(1), OPM develop rates for a similarly sized * * * * * subscriber group (see FEHBAR will require the carrier to submit its rate (Beginning of first certificate) proposal, utilization data, and a 1602.170–13) as certified in the certificate of accurate cost or pricing Certificate of Accurate Cost or Pricing Certificate of Accurate Cost or Pricing data required in 1615.406–2. In Data for Community-Rated Carriers Data for Community-Rated Carriers; addition, OPM will require the carrier to (SSSG methodology) (4) The Carrier, who is not mandated by the State to use traditional complete the proposed rates form This is to certify that, to the best of containing cost and pricing data, and community rating, developed FEHBP my knowledge and belief: (1) The cost rates with a rating methodology and the Community-Rate Questionnaire, but or pricing data submitted (or, if not will not require the carrier to send these structure inconsistent with its State- submitted, maintained and identified by filed rating methodology (or if not documents to OPM. The carrier will the carrier as supporting keep the documents on file for periodic required to file with the State, their documentation) to the Contracting standard written and established rating auditor and actuarial review in officer or the Contracting officer’s accordance with 1652.204–70. OPM will methodology) or inconsistent with the representative or designee, in support of FEHB specific medical loss ratio (MLR) perform a basic reasonableness test on the ll* FEHB Program rates were requirements (see FEHBAR 1602.170– the data submitted. Rates that do not developed in accordance with the 13); or pass this test will be subject to further requirements of 48 CFR Chapter 16 and (5) The Carrier submitted or, kept in OPM review. the FEHB Program contract and are its files in support of the FEHBP rate, * * * * * accurate, complete, and current as of the data or information of any description (3) * * * date this certificate is executed; and (2) that were not complete, accurate, and (i) * * * the methodology used to determine the current—then, the rate shall be reduced (A) For contracts with 1,500 or more FEHB Program rates is consistent with in the amount by which the price was enrollee contracts for which the FEHB the methodology used to determine the increased because of the defective data Program premiums for the contract term rates for the carrier’s Similarly Sized will be at or above the threshold at FAR Subscriber Group. or information. 15.403–4(a)(1), OPM will require the * Insert the year for which the rates * * * * * carrier to provide the data and apply. (c) When the Contracting Officer methodology used to determine the determines that the rates shall be Firm: lllllllllllllll FEHB Program rates. OPM will also reduced and the Government is thereby require the data and methodology used Name: lllllllllllllll entitled to a refund or that the to determine the rates for the carrier’s Signature: lllllllllllll Government is entitled to a MLR SSSG. The carrier will provide cost or Date of Execution: llllllllll penalty, the Carrier shall be liable to pricing data required by OPM in its rate (End of first certificate) and shall pay the FEHB Fund at the instructions for the applicable contract * * * * * time the overpayment is repaid or at the period. OPM will evaluate the data to time the MLR penalty is paid— ensure that the rate is reasonable and Subchapter H—Clauses and Forms (1) Simple interest on the amount of consistent with the requirements in this the overpayment from the date the PART 1652—CONTRACT CLAUSES chapter. If necessary, OPM may require overpayment was paid from the FEHB the carrier to provide additional ■ 7. The authority citation for part 1652 Fund to the Carrier until the date the documentation. continues to read as follows: overcharge is liquidated. In calculating (B) Contracts will be subject to a Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); the amount of interest due, the quarterly downward price adjustment if OPM 48 CFR 1.301. rate determinations by the Secretary of determines that the Federal group was ■ 8. In 1652.215–70, revise paragraphs the Treasury under the authority of 26 charged more than it would have been (a) and (c) to read as follows: U.S.C. 6621(a)(2) applicable to the charged using a methodology consistent periods the overcharge was retained by with that used for the SSSG. Such 1652.215–70 Rate Reduction for Defective the Carrier shall be used; adjustments will be based on the rate Pricing or Defective Cost or Pricing Data. (2) A penalty equal to the amount of determined by using the methodology * * * * * overpayment, if the Carrier knowingly

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submitted cost or pricing data which found to be higher than the equivalent Management, Room 4312, 1900 E Street was incomplete, inaccurate, or rates for the SSSG, the carrier shall NW., Washington, DC 20415. You may noncurrent; and reimburse the Fund, for example, by also submit comments using the Federal (3) Simple interest on the MLR reducing the FEHB rates for the next eRulemaking Portal: http:// penalty from the date on which the contract term to reflect the difference www.regulations.gov. Follow the penalty should have been paid to the between the estimated rates and the instructions for submitting comments. FEHB Fund to the date on which the rates which are derived using the FOR FURTHER INFORMATION CONTACT: penalty was or will be actually paid to methodology of the SSSG, except as Chelsea Ruediger at (202) 606–0004. the FEHB fund. The interest rate shall noted in paragraph (b)(3)(iii) of this SUPPLEMENTARY INFORMATION: When a be calculated as specified in paragraph clause. plan or plan option in the Federal (c)(1) of this clause. (iii) Carriers may provide additional ■ Employees Health Benefits (FEHB) 9. In 1652.216–70, revise paragraphs guaranteed discounts to the FEHBP that Program terminates, OPM provides the (b)(2), (3), (7), and (8) to read as follows: are not given to the SSSG. Any such enrollees of that plan or plan option a guaranteed discounts must be clearly 1652.216–70 Accounting and price time period in which they may elect to adjustment. identified as guaranteed discounts. After enroll in a new plan or plan option. the beginning of the contract year for This proposed rule clarifies the actions * * * * * which the rates are set, these guaranteed (b) * * * that OPM and employing agencies may FEHBP discounts may not be adjusted. (2) Effective January 1, 2013 all take when an enrollee fails to make an community-rated plans must develop * * * * * enrollment election during the time the FEHBP’s rates using their State-filed (7) Carriers may provide additional period provided. rating methodology or, if not required to guaranteed discounts to the FEHBP. Current regulation ends an file with the State, their standard Any such guaranteed discounts must be employee’s enrollment in the FEHB written and established rating clearly identified as guaranteed Program if he or she fails to make an methodology. A carrier who mandated discounts. After the beginning of the enrollment election during the time by the State to use traditional contract year for which the rates are set, period provided by OPM following a community rating will be subject to these guaranteed FEHBP discounts may plan termination. This proposed paragraph (b)(2)(ii) of this clause. All not be adjusted. regulation amends 5 CFR 890.301 to other carriers will be subject to (8) Carriers may not impose require the employing office to enroll paragraph (b)(2)(i) of this clause. surcharges (loadings not defined based automatically these employees into the (i) The subscription rates agreed to in on an established rating method) on the lowest-cost nationwide plan option this contract shall meet the FEHB- FEHBP subscription rates or use based on the enrollee share of the cost specific MLR threshold as defined in surcharges in the rate reconciliation of a self only enrollment. Under the FEHBAR 162.170–14. The ratio of a process. If the carrier is subject to the proposed regulation, a plan will not be plan’s incurred claims, including the SSSG rules and imposes a surcharge on considered the lowest-cost nationwide carrier’s expenditures for activities that the SSSG, the carrier cannot impose the plan option if it is a High Deductible improve health care quality, to total surcharge on FEHB. Health Plan (HDHP) or if it requires a premium revenue shall not be lower * * * * * membership fee or an association fee. than the FEHB-specific MLR threshold [FR Doc. 2014–30633 Filed 1–6–15; 8:45 am] For annuitants, current regulation published annually by OPM in its rate BILLING CODE 6325–63–P provides that individuals who fail to instructions. make an enrollment election during the (ii) The subscription rates agreed to in time provided by OPM following a plan this contract shall be equivalent to the OFFICE OF PERSONNEL termination shall be considered to be subscription rates given to the carrier’s MANAGEMENT enrolled in the option of the Blue Cross similarly sized subscriber group (SSSG) and Blue Shield Service Benefit Plan as defined in FEHBAR 1602.170–13. 5 CFR Part 890 that OPM determines most closely The subscription rates shall be RIN 3206–AN07 approximates the terminated plan. The determined according to the carrier’s proposed regulation amends 5 CFR established policy, which must be Federal Employees Health Benefits 890.306 to provide that these annuitants applied consistently to the FEHBP and Program: Enrollment Options will be enrolled into the lowest-cost to the carrier’s SSSG. If the SSSG Following the Termination of a Plan or nationwide plan option that is available receives a rate lower than that Plan Option to the individual based on the same determined according to the carrier’s criteria listed above. AGENCY: Office of Personnel established policy, it is considered a Current regulation provides that when Management. discount. The FEHBP must receive a a plan discontinuation occurs due to a discount equal to or greater than the ACTION: Proposed rule. disaster, employees and annuitants who carrier’s SSSG discount. fail to make an enrollment election SUMMARY: The U.S. Office of Personnel (3) If subject to paragraph (b)(2)(ii) of within 60 days of the disaster, as Management (OPM) is issuing a this clause, then: announced by OPM, shall be considered (i) If, at the time of the rate proposed rule to amend the Federal to be enrolled in the Standard Option of reconciliation, the subscription rates are Employees Health Benefits (FEHB) the Blue Cross and Blue Shield Service found to be lower than the equivalent Program regulations regarding Benefit Plan. The proposed rule amends rates for the SSSG, the carrier may enrollment options following the the regulation to provide that these include an adjustment to the Federal termination of a plan or plan option. individuals will be enrolled into the group’s rates for the next contract DATES: OPM must receive comments on lowest-cost nationwide plan option that period, except as noted in paragraph or before March 9, 2015. is available to the individual based on (b)(3)(iii) of this clause. ADDRESSES: Send written comments to the same criteria listed above. It also (ii) If, at the time of the rate Chelsea Ruediger, Planning and Policy provides belated enrollment authority reconciliation, the subscription rates are Analysis, U.S. Office of Personnel for individuals who, for causes beyond

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their control, are unable to make Federalism, and have determined that to a disaster, an employee must change enrollment changes and are enrolled in this rule will not have any negative the enrollment within 60 days of the the lowest-cost nationwide plan. impact on the rights, roles, and disaster, as announced by OPM. If an Since 2004, OPM has allowed up to responsibilities of State, local, or tribal employee does not change the three plan options under a plan. See 69 governments. enrollment within the time frame FR 31721. Accordingly, the proposed announced by OPM, the employee will List of Subjects in 5 CFR Part 890 rule also updates outdated language in be enrolled in the lowest-cost 5 CFR 890.301 and 890.306 that Administrative practice and nationwide plan option, as defined in considers the termination of a plan procedure, Government employees, paragraph (n) of this section. The option under a plan with a total of only Health facilities, Health insurance, effective date of enrollment changes two plan options. Under the proposed Health professions, Hostages, Iraq, under this provision will be set by OPM rule, when two or more plan options Kuwait, Lebanon, Military personnel, when it makes the announcement remain after a different plan option is Reporting and recordkeeping allowing such changes; terminated, the employing office will requirements, Retirement. (v) An employee who is unable, for enroll the employee in the lowest-cost U.S. Office of Personnel Management. causes beyond his or her control, to remaining plan option that is not an Katherine Archuleta, make an enrollment change within the HDHP. Director. 60 days following a disaster and is, as Conforming edits have been made to a result, enrolled in the lowest-cost Accordingly, OPM proposes to amend 5 CFR 890.806 for former spouses and nationwide plan as defined in paragraph title 5, Code of Federal Regulations, part 5 CFR 890.1108 for enrollees in (n) of this section, may request a belated 890 as follows: temporary continuation of coverage enrollment into the plan of his or her status. PART 890—FEDERAL EMPLOYEES choice subject to the requirements of We are seeking comment on these HEALTH BENEFITS PROGRAM paragraph (c) of this section. provisions. * * * * * ■ 1. The authority citation for part 890 Paperwork Reduction Act (PRA) (n) OPM will annually determine the continues to read as follows: lowest-cost nationwide plan option OPM has reviewed this proposed rule Authority: 5 U.S.C. 8913; Sec. 890.301 calculated based on the enrollee share of for PRA implications and have also issued under sec. 311 of Pub. L. 111–03, the cost of a self only enrollment. The determined that it does not apply to this 123 Stat. 64; Sec. 890.111 also issued under plan option identified may not be a action. section 1622(b) of Pub. L. 104–106, 110 Stat. High Deductible Health Plan (HDHP) or Regulatory Impact Analysis 521; Sec. 890.112 also issued under section an option from a health benefits plan 1 of Pub. L. 110–279, 122 Stat. 2604; 5 U.S.C. that charges an association or OPM has examined the impact of this 8913; Sec. 890.803 also issued under 50 membership fee. proposed rule as required by Executive U.S.C. 403p, 22 U.S.C. 4069c and 4069c–1; ■ 3. Amend § 890.306 by revising Order 12866 and Executive Order subpart L also issued under sec. 599C of Pub. L. 101–513, 104 Stat. 2064, as amended; Sec. paragraphs (l)(4)(ii), (iii), (iv), and (v) 13563, which directs agencies to assess and adding paragraph (l)(4)(vi) to read all costs and benefits of available 890.102 also issued under sections 11202(f), 11232(e), 11246 (b) and (c) of Pub. L. 105– as follows: regulatory alternatives and, if regulation 33, 111 Stat. 251; and section 721 of Pub. L. is necessary, to select regulatory 105–261, 112 Stat. 2061; Pub. L. 111–148, as § 890.306 When can annuitants or survivor approaches that maximize net benefits amended by Pub. L. 111–152. annuitants change enrollment or reenroll and what are the effective dates? (including potential economic, ■ 2. Amend § 890.301 by revising environmental, public, health, and paragraphs (i)(4)(ii), (iii), and (iv) and * * * * * safety effects, distributive impacts, and (l) * * * adding paragraphs (i)(4)(v) and (n) to (4) * * * equity). A regulatory impact analysis read as follows: must be prepared for major rules with (ii) If a plan discontinues all of its economically significant effects of $100 § 890.301 Opportunities for employees existing options, an annuitant who does million or more in any one year. After who are not participants in premium not change his or her enrollment is completing this analysis, OPM has conversion to enroll or change enrollment; deemed to have enrolled in the lowest- determined that this rule is not effective dates. cost nationwide plan option, as defined considered a major rule. * * * * * in § 890.301(n); except when the (i) * * * annuity is insufficient to pay the Regulatory Flexibility Act (4) * * * withholdings, then paragraph (q) of this I certify that this regulation will not (ii) If the whole plan is discontinued, section applies. have a significant economic impact on an employee who does not change the (iii) If one or more options of a plan a substantial number of small entities enrollment within the time set in are discontinued, an annuitant who because the regulation only impacts paragraph (i)(4)(i) of this section will be does not change the enrollment will be options available for FEHB enrollees enrolled in the lowest-cost nationwide enrolled in the remaining option of the when the plan or plan option in which plan option, as defined in paragraph (n) plan, or in the case of a plan with two they are enrolled terminates. of this section; or more options remaining, the lowest- (iii) If one or more options of a plan cost remaining option that is not a High Executive Order 12866, Regulatory are discontinued, an employee who Deductible Health Plan (HDHP). In the Review does not change the enrollment will be event that the annuity is insufficient to This rule has been reviewed by the enrolled in the remaining option of the pay the withholdings, then paragraph Office of Management and Budget in plan, or in the case of a plan with two (q) of this section applies; accordance with Executive Order 12866. or more options remaining, the lowest- (iv) After an involuntary enrollment cost remaining option that is not a High under paragraph (l)(4)(ii) or (iii) of this Federalism Deductible Health Plan (HDHP). section becomes effective, the annuitant We have examined this rule in (iv) If the discontinuance of the plan, may change the enrollment to another accordance with Executive Order 13132, whether permanent or temporary, is due option of the plan into which he or she

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was enrolled or another health plan of (v) A former spouse who is unable, for OFFICE OF PERSONNEL his or her choice retroactively within causes beyond his or her control, to MANAGEMENT 90-days after OPM advises the annuitant make an enrollment change within the of the new enrollment; 60 days following a disaster and is, as 5 CFR Part 890 (v) If the discontinuance of the plan, a result, enrolled in the lowest-cost RIN 3206–AN14 whether permanent or temporary, is due nationwide plan as defined in to a disaster, an annuitant must change § 890.301(n), may request a belated Federal Employees Health Benefits the enrollment within 60 days of the enrollment into the plan of his or her Program; Subrogation and disaster, as announced by OPM. If an choice subject to the requirements of Reimbursement Recovery annuitant does not change the paragraph (c) of this section. enrollment within the time frame AGENCY: Office of Personnel announced by OPM, the annuitant will * * * * * Management. be enrolled in the lowest-cost ■ 5. Amend § 890.1108 by revising ACTION: Proposed rule. nationwide plan option, as defined in paragraphs (h)(4)(ii), (iii), and (iv) and SUMMARY: The United States Office of § 890.301(n). The effective date of adding paragraph (h)(4)(v) to read as Personnel Management (OPM) is issuing enrollment changes under this provision follows: a proposed rule to amend the Federal will be set by OPM when it makes the Employees Health Benefits (FEHB) announcement allowing such changes; § 890.1108 Opportunities to change Program regulations to clarify the (vi) An annuitant who is unable, for enrollment; effective dates. conditional nature of FEHB Program causes beyond his or her control, to * * * * * benefits and benefit payments under the make an enrollment change within the (h) * * * plan’s coverage as subject to a carrier’s 60 days following a disaster and is, as (4) * * * entitlement to subrogation and a result, enrolled in the lowest-cost reimbursement recovery, and therefore, nationwide plan as defined in (ii) If the whole plan is discontinued, that such entitlement falls within the § 890.301(n), may request a belated an enrollee who does not change the preemptive scope of the U.S.C. FEHB enrollment into the plan of his or her enrollment within the time set will be contracts must include a provision choice subject to the requirements of enrolled in the lowest-cost nationwide incorporating the carrier’s subrogation paragraph (c) of this section. plan option, as defined in § 890.301(n); and reimbursement rights and FEHB * * * * * (iii) If one or more options of a plan plan brochures must explain the ■ 4. Amend § 890.806 by revising are discontinued, an enrollee who does carrier’s subrogation and reimbursement paragraphs (j)(4)(ii), (iii), and (iv) and not change the enrollment will enrolled policy. adding paragraph (j)(4)(v) to read as in the remaining option of the plan, or DATES: Comments are due on or before follows: in the case of a plan with two or more February 6, 2015. § 890.806 When can former spouses options remaining, the lowest-cost ADDRESSES: Send written comments to change enrollment or reenroll and what are remaining option that is not a High Marguerite Martel, Senior Policy the effective dates? Deductible Health Plan (HDHP); Analyst, Planning and Policy Analysis, * * * * * (iv) If the discontinuance of the plan, U.S. Office of Personnel Management, (j) * * * whether permanent or temporary, is due Room 4312, 1900 E Street NW., (4) * * * to a disaster, the enrollee must change Washington, DC; or FAX to (202) 606– (ii) If the whole plan is discontinued, the enrollment within 60 days of the 4640 Attn: Marguerite Martel. You may a former spouse who does not change disaster, as announced by OPM. If the also submit comments using the Federal the enrollment within the time set will enrollee does not change the enrollment eRulemaking Portal: http:// be enrolled in the lowest-cost within the time frame announced by www.regulations.gov. Follow the nationwide plan option, as defined in OPM, the enrollee will be enrolled in instructions for submitting comments. § 890.301(n); the lowest-cost nationwide plan option, FOR FURTHER INFORMATION CONTACT: (iii) If one or more options of a plan as defined in § 890.301(n). The effective Marguerite Martel at Marguerite.Martel@ are discontinued, a former spouse who date of enrollment changes under this opm.gov or (202) 606–0004. does not change the enrollment will be provision will be set by OPM when it SUPPLEMENTARY INFORMATION: The FEHB enrolled in the remaining option of the makes the announcement allowing such Act, as codified at 5 U.S.C. 8902(m)(1) plan, or in the case of a plan with two changes; provides: ‘‘The terms of any contract or more options remaining, the lowest- under this chapter which relate to the cost remaining option that is not a High (v) An enrollee who is unable, for nature, provision, or extent of coverage Deductible Health Plan (HDHP); causes beyond his or her control, to or benefits (including payments with (iv) If the discontinuance of the plan, make an enrollment change within the respect to benefits) shall supersede and whether permanent or temporary, is due 60 days following a disaster and is, as preempt any State or local law, or any to a disaster, the former spouse must a result, enrolled in the lowest-cost regulation issued thereunder, which change the enrollment within 60 days of nationwide plan as defined in relates to health insurance or plans.’’ the disaster, as announced by OPM. If § 890.301(n), may request a belated This proposed regulation reaffirms that a former spouse does not change the enrollment into the plan of his or her a covered individual’s entitlement to enrollment within the time frame choice subject to the requirements of FEHB benefits and benefit payments is announced by OPM, the former spouse paragraph (c) of this section. conditioned upon, and limited by, a will be enrolled in the lowest-cost * * * * * carrier’s entitlement to subrogation and nationwide plan option, as defined in [FR Doc. 2014–30636 Filed 1–6–15; 8:45 am] reimbursement recoveries pursuant to a § 890.301(n). The effective date of BILLING CODE 6325–63–P subrogation or reimbursement clause in enrollment changes under this provision the FEHB contract. This proposed will be set by OPM when it makes the regulation also reaffirms that a FEHB announcement allowing such changes; carrier’s rights and responsibilities

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pertaining to subrogation and Interpreting subrogation and This proposed rule also clarifies that reimbursement relate to the nature, reimbursement clauses to fall within where a covered individual challenges a provision and extent of coverage or Section 8902(m)(1) is consistent with carrier’s right of subrogation and benefits and benefit payments provided the definition of subrogation and reimbursement, that challenge is not a under title 5, United States Code reimbursement described above and ‘‘claim,’’ which current OPM Chapter 89, and therefore are effective their relationship to benefits and the regulations define as ‘‘a request for notwithstanding any state or local law payment of benefits. This interpretation payment of a health-related bill’’ or the or regulation relating to health also furthers Congress’s goals of ‘‘provision of a health-related service or insurance or plans. This interpretation reducing health care costs and enabling supply.’’ 5 CFR 890.101. Because comports with longstanding Federal uniform, nationwide application of subrogation and reimbursement policy, lowers the cost of benefits, and FEHB contracts. The FEHB program challenges are not claims, they are not creates greater uniformity in benefits insures approximately 8.2 million subject to the disputed claims process and benefits administration. federal employees, annuitants, and their set forth at 5 CFR 890.105, 890.107. Currently, and consistent with families, a significant proportion of The proposed rule adds definitions of longstanding practice, FEHB Program whom are covered through nationwide subrogation and reimbursement to 5 contracts and the applicable statement fee-for-service plans with uniform rates. CFR 890.101. In addition, the regulation of benefits (brochures) generally require The government pays on average replaces the current section 890.106, carriers to seek reimbursement and/or approximately 70% of Federal which is no longer needed due to subrogation recoveries, and covered employees’ plan premiums. 5 U.S.C. creation of the Civilian Board of individuals to reimburse the plan in the 8906(b), (f). The government’s share of Contract Appeals. The proposed section event of a third party recovery, in FEHB premiums in 2014 was 890.106 defines an FEHB carrier’s right accordance with the terms of their FEHB approximately $33 billion, a figure that to subrogation and reimbursement in contracts. The funds received by tends to increase each year. OPM accordance with this part. As the experience-rated carriers from these estimates that FEHB carriers were Federal agency with regulatory recoveries are required to be credited to reimbursed by approximately $126 authority over the FEHB Program, OPM the Employees Health Benefits Fund million in subrogation recoveries in that has consistently taken the position that established by 5 U.S.C. 8909, held by year. Subrogation recoveries translate to the FEHB Act preempts state laws that the Treasury of the United States. For premium cost savings for the federal restrict or prohibit FEHB Program experience-rated carriers and most government and FEHB enrollees. These carrier reimbursement and/or community-rated carriers, subrogation cost savings are consistent with subrogation recovery efforts, and we and reimbursement recoveries serve to Congress’s intent as expressed in the continue to maintain this position. lower subscription charges for legislative history of the 1998 OPM is issuing proposed rule-making individuals enrolled in the Federal amendment to 5 U.S.C. 8902(m)(1), that further clarifies this provision of Employees Health Benefits Program. indicating that Congress intended 5 law. These recoveries occur when an U.S.C. 8902(m)(1) to ‘‘prevent carriers’ Regulatory Impact Analysis enrollee who is injured obtains benefits cost-cutting initiatives from being from his or her FEHB Program plan and frustrated by State laws,’’ H. Rept. No. OPM has examined the impact of this either (1) the carrier recovers payment 105–374 at 9, 105th Cong., 1st Sess. proposed rule as required by Executive for those benefits from a third party as (1997), and with uniform administration Order 12866 and Executive Order a subrogee of the enrollee or (2) the and cost-savings principles first 13563, which directs agencies to assess enrollee recovers payment for those envisioned as major goals of Congress as all costs and benefits of available benefits from a third party and the terms it initially enacted the FEHBA in 1959. regulatory alternatives and, if regulation of the plan require the enrollee, as a See, H.R. Rep No. 86–957, 86th Cong. is necessary, to select regulatory result of recovery, to reimburse the 1st Sess. (1959). approaches that maximize net benefits carrier for benefits initially paid. (including potential economic, As OPM explained in carrier letter In addition to its cost-savings goals, environmental, public, health, and 2012–18 (June 18, 2012), and as this OPM recognizes a strong federal interest safety effects, distributive impacts, and proposed regulation would reaffirm, the in national uniformity in coverage and equity). A regulatory impact analysis carrier’s right to subrogation and/or benefits to include uniform must be prepared for major rules with reimbursement recovery is a condition administration of the FEHB program economically significant effects of $100 of the payments that enrollees are across state lines. This principle million or more in any one year. This eligible to receive for benefits, and a encompasses the need to apply uniform rule is not considered a major rule limitation on their entitlement to the rules that affect the rights and because there will be a minimal impact provision of these benefits. Subrogation obligations of enrollees in a given plan on costs to Federal agencies. and reimbursement clauses in turn without regard to where they live. relate to the nature, provision, and Disuniform application of FEHB Regulatory Flexibility Act extent of coverage or benefits (and the contract terms as they apply to enrollees I certify that this regulation will not payment of benefits) by making those in different states is administratively have a significant economic impact on payments conditional upon a right to burdensome, gives rise to uncertainty a substantial number of small entities subrogation or reimbursement of and litigation, and results in treating because the regulation only affects equivalent amounts, either from a third- enrollees differently, although enrolled health insurance benefits of Federal party, or from the enrollee, in the event in the same plan and paying the same employees and annuitants. Executive a third party is obligated to pay for the premium. It is OPM’s understanding Order 12866. same injury or illness. The carrier’s right that Congress enacted the preemption to pursue these recoveries therefore falls provision to avoid such disparities, and Regulatory Review within the purview of 5 U.S.C. to enhance the ability of the Federal This rule has been reviewed by the 8902(m)(1), and supersedes state laws Government to offer its employees a Office of Management and Budget in that relate to health insurance or health program of health benefits governed by accordance with Executive Orders plans. a uniform set of legal rules. 13563 and 12866.

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Federalism of the recovery to the extent of the insurers of individual (non-group) benefits initially paid or provided. policies of liability insurance that are We have examined this rule in issued to and in the name of the accordance with Executive Order 13132, * * * * * Subrogation means a carrier’s pursuit enrollee or a covered family member. Federalism, and have determined that of a recovery from a responsible third (d) A FEHB carrier’s exercise of its this rule restates existing rights, roles party as successor to the rights of an right to pursue and receive subrogation and responsibilities of State, local, or injured covered individual who has or reimbursement recoveries does not tribal governments. obtained benefits from that health give rise to a claim within the meaning List of Subjects in 5 CFR Part 890 benefits plan. of § 890.101 and is therefore not subject to the disputed claims process set forth Administrative practice and * * * * * ■ at § 890.105. procedure, Government employees, 3. Section 890.106 is revised to read as follows: (e) Any subrogation or reimbursement Health facilities, Health insurance, recovery on the part of a FEHB carrier Health professions, Hostages, Iraq, § 890.106 Carrier entitlement to pursue shall be effectuated against the recovery Kuwait, Lebanon, Military personnel, subrogation and reimbursement recoveries. first (before any of the rights of any Reporting and recordkeeping (a) All health benefit plan contracts other parties are effectuated) and is not requirements, Retirement. shall provide that the Federal impacted by how the judgment, U.S. Office of Personnel Management. Employees Health Benefits (FEHB) settlement, or other recovery is Katherine Archuleta, carrier is entitled to pursue subrogation characterized, designated, or Director. and reimbursement recoveries, and shall apportioned. have a policy to pursue such recoveries (f) Pursuant to a subrogation or Accordingly, OPM proposes to amend in accordance with the terms of this title 5, Code of Federal Regulations, part reimbursement clause, the FEHB carrier section. may recover directly from the covered 890 as follows: (b) In any health benefits plan that individual all amounts received by or contains a subrogation or PART 890—FEDERAL EMPLOYEES on behalf of the covered individual by reimbursement clause, including HEALTH BENEFITS PROGRAM judgment, settlement, or other recovery contracts entered into before the from any third party or its insurer, or effective date of this regulation, benefits ■ 1. The authority citation for part 890 the covered individual’s insurer, to the and benefit payments are extended to a continues to read as follows: extent of the amount of benefits that covered individual on the condition that have been paid or provided by the Authority: 5 U.S.C. 8913; Sec. 890.301 also the FEHB carrier may pursue and carrier. issued under sec. 311 of Pub. L. 111–03, 123 receive subrogation and reimbursement (g) Any contract must contain a Stat. 64; Sec. 890.111 also issued under recoveries if such benefits or benefit section 1622(b) of Pub. L. 104–106, 110 Stat. provision incorporating the carrier’s payments are for an injury or illness that 521; Sec. 890.112 also issued under section subrogation and reimbursement rights is the responsibility of a third party. 1 of Pub. L. 110–279, 122 Stat. 2604; 5 U.S.C. as a condition of and a limitation on the FEHB carriers’ right to pursue and 8913; Sec. 890.803 also issued under 50 nature of benefits or benefit payments receive subrogation and reimbursement U.S.C. 403p, 22 U.S.C. 4069c and 4069c–1; and on the provision of benefits under subpart L also issued under sec. 599C of Pub. recoveries constitutes a condition of and the plan’s coverage. The corresponding L. 101–513, 104 Stat. 2064, as amended; Sec. a limitation on the nature of benefits or health benefits plan brochure must 890.102 also issued under sections 11202(f), benefit payments and on the provision contain an explanation of the carrier’s 11232(e), 11246 (b) and (c) of Pub. L. 105– of benefits under the plan’s coverage. subrogation and reimbursement policy. 33, 111 Stat. 251; and section 721 of Pub. L. (c) Contracts shall provide that the 105–261, 112 Stat. 2061; Pub. L. 111–148, as (h) A carrier’s rights and FEHB carriers’ rights to pursue and amended by Pub. L. 111–152. responsibilities pertaining to receive subrogation or reimbursement subrogation and reimbursement under a ■ 2. In § 890.101(a), add definitions for recoveries arise upon the occurrence of FEHB contract relate to the nature, ‘‘Reimbursement’’ and ‘‘Subrogation’’ in the following: alphabetical order to read as follows: (1) The covered individual has provision, and extent of coverage or received benefits or benefit payments as benefits (including payments with § 890.101 Definitions; time computations. a result of an illness or injury; and respect to benefits) within the meaning (a) * * * (2) The covered individual has of 5 U.S.C. 8902(m)(1). These rights and Reimbursement means a carrier’s accrued a right of action against a third responsibilities are therefore effective pursuit of a recovery if a covered party for causing that illness or injury; notwithstanding any state or local law, individual has been injured and has or has received a judgment, settlement or any regulation issued thereunder, received a payment from a responsible or other recovery on the basis of that which relates to health insurance or third party and the terms of the plan illness or injury; or is entitled to receive plans. require the covered individual, as a compensation or recovery on the basis [FR Doc. 2014–30638 Filed 1–6–15; 8:45 am] result of recovery, to pay the carrier out of the illness or injury, including from BILLING CODE 6325–63–P

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Part III

Department of Commerce

National Oceanic and Atmospheric Administration 50 CFR Part 679 Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Management Area; New Cost Recovery Fee Programs; Proposed Rule

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DEPARTMENT OF COMMERCE Ellen Sebastian. Mail comments to P.O. management measures pursuant to 50 Box 21668, Juneau, AK 99802–1668. CFR 300.62. The Halibut Act, at sections National Oceanic and Atmospheric Instructions: Comments sent by any 773c (a) and (b), provides the Secretary Administration other method, to any other address or with general responsibility to carry out individual, or received after the end of the Convention and the Halibut Act. 50 CFR Part 679 the comment period, may not be Table of Contents considered by NMFS. All comments [Docket No. 140304192–4999–01] received are a part of the public record I. Statutory Authority and will generally be posted for public A. Limited Access Privilege Programs RIN 0648–BE05 viewing on www.regulations.gov B. CDQ Program Provisions without change. All personal identifying C. Maximum Amount and Collection of Fisheries of the Exclusive Economic Cost Recovery Fees Zone Off Alaska; Bering Sea and information (e.g., name, address, etc.), D. Applicability of Section 303A of the Aleutian Islands Management Area; confidential business information, or Magnuson-Stevens Act New Cost Recovery Fee Programs otherwise sensitive information E. Summary of Relevant Magnuson-Stevens submitted voluntarily by the sender will Act Provisions AGENCY: National Marine Fisheries be publicly accessible. NMFS will F. Existing Cost Recovery Fee Programs, Service (NMFS), National Oceanic and accept anonymous comments (enter ‘‘N/ Policies, and Guidance Atmospheric Administration (NOAA), A’’ in the required fields if you wish to II. Background Commerce. remain anonymous). Attachments to A. AFA Program B. Aleutian Islands Pollock Program ACTION: Proposed rule; request for electronic comments will be accepted in C. Amendment 80 Program comments. Microsoft Word, Excel, or Adobe PDF D. CDQ Program file formats only. III. Cost Recovery—General SUMMARY: NMFS issues a proposed rule Written comments regarding the A. Person and Permit Subject to Cost to implement cost recovery fee programs burden-hour estimates or other aspects Recovery Fee Liability for the Western Alaska Community of the collection-of-information B. Fee Percentage Development Quota (CDQ) Program for requirements contained in this proposed C. Ex-Vessel Value groundfish and halibut, and three rule may be submitted to NMFS at the D. Ex-Vessel Prices limited access privilege programs: The above address and by email to OIRA_ E. Information Used to Calculate Ex-Vessel American Fisheries Act (AFA), Aleutian Value [email protected] or fax to (202) 1. Volume and Value Reports Islands Pollock, and Amendment 80 395–5806. 2. IFQ Buyer Report Programs. The Magnuson-Stevens Electronic copies of the Regulatory 3. Commercial Operator’s Annual Report Fishery Conservation and Management Impact Review (RIR), and the Initial (COAR) Act (Magnuson-Stevens Act) authorizes Regulatory Flexibility Analysis (IRFA) F. Reimbursable Costs and requires the collection of cost prepared for this action are available G. Fee Liability Notice and Submission recovery fees for the CDQ Program and from http://www.regulations.gov or from H. Payment Compliance limited access privilege programs. Cost the NMFS Alaska Region Web site at I. Annual Reports recovery fees recover the actual costs IV. The Proposed Action http://alaskafisheries.noaa.gov. A. Pollock Cost Recovery Fee Programs directly related to the management, data FOR FURTHER INFORMATION CONTACT: 1. AFA Cost Recovery Fee Program collection, and enforcement of the Karen Palmigiano, 907–586–7228. Applicable Entities programs. The Magnuson-Stevens Act SUPPLEMENTARY INFORMATION: NMFS 2. Aleutian Islands Pollock Cost Recovery mandates that cost recovery fees not manages the groundfish fisheries in the Fee Program Applicable Entities 3. Cost, Values, and Fee Percentage exceed 3 percent of the annual ex-vessel Federal exclusive economic zone (EEZ) value of fish harvested by a program 4. Calculation of Standard Price of the Bering Sea and Aleutian Islands Information subject to a cost recovery fee. This Management Area (BSAI) under the action is intended to promote the goals B. Amendment 80 Cost Recovery Fee FMP. The North Pacific Fishery Program and objectives of the Magnuson-Stevens Management Council prepared the FMP 1. Amendment 80 Cost Recovery Fee Act, the Fishery Management Plan for under the authority of the Magnuson- Program Applicable Entities Groundfish of the Bering Sea and Stevens Act, 16 U.S.C. 1801 et seq. 2. Cost, Values, and Fee Percentage Aleutian Islands Management Area Regulations governing U.S. fisheries and 3. Calculation of Standard Price (FMP), and other applicable laws. Information implementing this FMP appear at 50 C. CDQ Cost Recovery Fee Program DATES: Comments must be received no CFR parts 600 and 679. 1. CDQ Cost Recovery Fee Program later than February 6, 2015. The International Pacific Halibut Applicable Entities ADDRESSES: You may submit comments Commission (IPHC) and NMFS manage 2. Cost, Values, and Fee Percentage on this document, identified by NOAA– fishing for Pacific halibut through 3. Calculation of Standard Price NMFS–2014–0031, by any of the regulations established under the Information following methods: authority of the Northern Pacific Halibut V. Classification • Electronic Submission: Submit all Act of 1982 (Halibut Act). The IPHC A. Initial Regulatory Flexibility Analysis B. Description of Significant Alternatives electronic public comments via the promulgates regulations governing the Considered Federal e-Rulemaking Portal. Go to halibut fishery under the Convention C. Additional Alternatives Considered www.regulations.gov/ between the United States and Canada D. Collection-of-Information Requirements #!docketDetail;D=NOAA-NMFS-2014- for the Preservation of the Halibut 0031, click the ‘‘Comment Now!’’ icon, Fishery of the Northern Pacific Ocean I. Statutory Authority complete the required fields, and enter and Bering Sea (Convention). The The primary statutory authority for or attach your comments. IPHC’s regulations are subject to this proposed action is section 304(d) of • Mail: Submit written comments to approval by the Secretary of State with the Magnuson-Stevens Act. Section Glenn Merrill, Assistant Regional the concurrence of the Secretary of 304(d) of the Magnuson-Stevens Act Administrator, Sustainable Fisheries Commerce (Secretary). NMFS publishes specifies that the Secretary is authorized Division, Alaska Region NMFS, Attn: the IPHC’s regulations as annual and shall collect a fee to recover the

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actual costs directly related to the measures adopted by the IPHC pursuant cost recovery fees, the portions of the management, data collection, and to 50 CFR 300.62. For the most recent TACs allocated as a limited access enforcement of any limited access example of the annual catch limit, see privilege, the permits issued, and the privilege program and community the 2014 annual management measures persons receiving the permits for each of development quota program that (79 FR 13906, March 12, 2014). these limited access privilege programs. allocates a percentage of the total Section 3 of the Magnuson-Stevens NMFS also considered implementing allowable catch of a fishery to such Act defines ‘‘person’’ as ‘‘any individual a cost recovery fee program, under program. Section 304(d) also specifies (whether or not a citizen or national of section 304(d) of the Magnuson-Stevens that such fee shall not exceed three the United States), any corporation, Act, for the BSAI Pacific cod allocation percent of the ex-vessel value of fish partnership, association, or other entity to the hook-and-line catcher/processors harvested under any such program. (whether or not organized or existing that are part of the Freezer Longline under the laws of any State), and any Coalition Cooperative. However, the A. Limited Access Privilege Programs Federal, State, local, or foreign BSAI Pacific cod allocation to the hook- Relevant to section 304(d)(2)(A)(i), government or any entity of any such and-line catcher/processors does not and the specific programs to which this government.’’ currently meet the definition of a proposed action would apply, section 3 These definitions mean that the limited access privilege program of the Magnuson-Stevens Act defines a Secretary is authorized and required to because the Freezer Longline Coalition ‘‘limited access privilege’’ as including collect a cost recovery fee for fisheries Cooperative does not have an exclusive ‘‘an individual fishing quota.’’ Section 3 in which the person receiving a permit harvest privilege. This issue is of the Magnuson-Stevens Act defines to harvest a percentage of the TAC is an addressed under the ‘‘Additional ‘‘individual fishing quota’’ as ‘‘a Federal individual or some other type of non- Alternatives Considered’’ heading in permit under a limited access system to individual entity, including a section V of this preamble. harvest a quantity of fish, expressed by corporation, partnership, or fishery a unit or units representing a percentage cooperative. Further, these definitions B. CDQ Program Provisions of the total allowable catch of a fishery mean that the Secretary is authorized Section 304(d)(2)(ii) of the Magnuson- that may be received or held for and required to collect a cost recovery Stevens Act provides the Secretary with exclusive use by a person. Such term fee for limited access systems the authority and requirement to collect does not include community established under section 303A of the fees to recover costs from the CDQ development quotas as described in Magnuson-Stevens Act, as well as Program for fisheries in which a section 305(i).’’ The Magnuson-Stevens individual fishing quotas that are not percentage of the TAC of a fishery is Act and Federal regulations further established under section 303A of the allocated to the CDQ Program. Section define the terms ‘‘permit,’’ ‘‘limited Magnuson-Stevens Act. The programs 305(i) of the Magnuson-Stevens Act access system,’’ ‘‘total allowable catch,’’ that would be subject to a cost recovery authorizes the CDQ Program and and ‘‘person.’’ fee under this proposed action were not specifies the annual percentage of the Federal regulations at 50 CFR 679.2 established under the provisions of TAC allocated to the CDQ Program in define a ‘‘permit’’ as ‘‘documentation section 303A of the Magnuson-Stevens each directed fishery of the BSAI. granting permission to fish.’’ Section 3 Act, but would be subject to a cost Section 305(i) also specifies the method of the Magnuson-Stevens Act defines recovery fee under the provisions for further apportioning the TAC ‘‘limited access system’’ as ‘‘a system applicable to individual fishing quota allocated to the CDQ Program to specific that limits participation in a fishery to programs. persons, i.e., CDQ groups. Section 305(i) those satisfying certain eligibility Section 304(d)(2)(A) of the Magnuson- also defines these CDQ groups. NMFS criteria or requirements contained in a Stevens Act authorizes and requires the previously implemented cost recovery fishery management plan or associated Secretary to collect a cost recovery fee fees for the amount of BSAI crab fishery regulation.’’ for limited access privilege programs. TACs allocated to the CDQ Program Federal regulations at § 679.20 define By definition under section 3 of the under regulations implementing the the process for establishing a ‘‘total Magnuson-Stevens Act, limited access Crab Rationalization Program (70 FR allowable catch’’ (TAC) on an annual privilege programs include individual 10174, March 2, 2005, see regulations at basis for each groundfish fishery fishing quota programs. By definition § 680.44) under the authority of section managed under the FMP. Each year, under the Magnuson-Stevens Act, the 304(d)(2) of the Magnuson-Stevens Act. NMFS publishes a final rule to AFA Program, Aleutian Islands Pollock NMFS proposes to implement cost implement an annual harvest Program, and Amendment 80 Program recovery fees for BSAI groundfish and specification establishing a TAC amount are individual fishing quota programs, halibut TACs allocated to the CDQ for each groundfish fishery managed because: (1) NMFS issues permits as Program under the authority of section under the FMP. For the most recent part of a limited access system 304(d)(2) of the Magnuson-Stevens Act. example of the annual harvest established under each of these specifications, see the final 2014 and programs; (2) these permits allow the C. Maximum Amount and Collection of 2015 harvest specifications (79 FR harvest of a quantity of specific fisheries Cost Recovery Fees 12108, March 4, 2014). Each year, the representing a portion of the TAC of the Sections 304(d)(2)(B) and (C) of the IPHC establishes an annual catch limit fisheries managed under each of these Magnuson-Stevens Act specify an upper that represents the TAC in the programs; and (3) these permits are limit on cost recovery fees, when the commercial halibut fishery pursuant to received or held for exclusive use by fees must be collected, and where the its authority under the Convention. The specific persons as defined for each of fees must be deposited. Section annual catch limit is adopted by the these programs. Therefore, NMFS 304(d)(2)(B) provides that the fee shall IPHC each year, and the Secretary of proposes to implement cost recovery not exceed three percent of the ex-vessel State of the United States, with the fees for these programs as authorized value of fish harvested under either a concurrence of the Secretary, can accept and required in section 304(d)(2) of the limited access privilege program or a annual management measures adopted Magnuson-Stevens Act. Sections III and CDQ program that allocates a percentage by the IPHC. If accepted, NMFS IV of this preamble provide additional of the TAC of a fishery to such a publishes the annual management detail on the specific fisheries subject to program. NMFS does not have the

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authority to collect cost recovery fees Secretary, within 6 months after the quota’’ under section 3 of the under section 304(d)(2)(i) when a date of enactment of the Magnuson- Magnuson-Stevens Act. Specifically, person does not hold or receive Stevens Fishery Conservation and under each of these programs, NMFS exclusive use of a percentage of the Management Reauthorization Act of issues ‘‘a Federal permit under a limited TAC. 2006.’’ The Magnuson-Stevens Fishery access system to harvest a quantity of Section 304(d)(2)(B) also states that Conservation and Management fish, expressed by a unit or units the cost recovery fee must be collected Reauthorization Act of 2006 was representing a percentage of the total at either the time of the landing, filing enacted on January 12, 2007 (Public allowable catch of a fishery that may be of a landing report, or sale of such fish Law 109–479). Therefore, a quota received or held for exclusive use by a during the fishing season, or in the last program, including any individual person.’’ quarter of the calendar year in which quota program, cooperative program, or E. Summary of Relevant Magnuson- the fish were harvested. NMFS proposes sector allocation is not subject to the Stevens Act Provisions that all fees for all four programs requirements of section 303A(e) if a included in this action would be due Council took final action on the To summarize, the Magnuson-Stevens annually by December 31 of the program, a Council submitted the Act specifies the following with respect calendar year in which the landings program, or the program was approved to the collection of cost recovery fees: were made. This complies with the by the Secretary before July 10, 2007. • Fees must be collected for all requirements of section 304(d)(2)(B). All three of the limited access privilege limited access privilege programs; Section 304(d)(2)(C) requires that all programs included in this proposed rule • Fees must be collected for the CDQ fees be deposited in the Limited Access were either recommended by the North Program; System Administration Fund, which Pacific Fishery Management Council, or • Fees must recover actual costs was established under section approved by the Secretary and directly related to management, data 305(h)(5)(B). NMFS proposes to collect implemented prior to July 10, 2007. collection, and enforcement of the all fees electronically in U.S. dollars by The AFA Program was approved by programs; automated clearing house, credit card, the Secretary as an FMP amendment on • Fees must not exceed three percent or electronic check drawn on a U.S. February 27, 2002, and implemented in of the ex-vessel value of a fish harvested bank account. Those fees would be a final rule on December 30, 2002 (67 under a program subject to cost deposited in the Limited Access System FR 79692, December 30, 2002). The recovery; Administration Fund. Sections III and Aleutian Islands Pollock Program was • Fees are in addition to any other IV of this preamble provide further approved by the Secretary as an FMP fees charged under the Magnuson- details on how the fees will be assessed amendment on February 9, 2005 and Stevens Act; and collected for each of the limited implemented as a final rule on March 1, • access privilege programs and the CDQ Fees must be deposited in the 2005 (70 FR 9856, March 1, 2005). The Program. Limited Access System Administrative North Pacific Fishery Management Fund (LASAF) in the U.S. Treasury; and D. Applicability of Section 303A of the Council took final action to recommend • Fees must be collected at either the Magnuson-Stevens Act the Amendment 80 Program on June 9, time of a legal landing, filing of a NMFS has determined that cost 2006. Additional detail on the North landing report, or sale of such fish recovery fee provisions in section 303A Pacific Fishery Management Council’s during a fishing season or in the last do not apply to the cost recovery fee final action to recommend the quarter of the calendar year in which program proposed in this rule, Amendment 80 Program is found in the the fish is harvested. specifically the requirements in section final rule implementing the Amendment For more detail on the Secretary and 303A(e). The CDQ Program is not a 80 Program (72 FR 52668, September 14, NMFS’ authority to implement cost limited access privilege program as 2007). Therefore, the requirements of recovery fees, please see section 1.1 of defined in section 3 of the Magnuson- section 303A(e) of the Magnuson- the RIR/IRFA. Stevens Act. Therefore, section 303A(e) Stevens Act do not apply to the AFA, F. Existing Cost Recovery Fee Programs, does not apply to the CDQ Program. the Aleutian Islands Pollock, or the Section 303A(e) also does not apply to Amendment 80 Program. Policies, and Guidance the AFA, Aleutian Islands Pollock, and Although the AFA, Aleutian Islands NMFS has previously established cost Amendment 80 Programs. NMFS based Pollock, and Amendment 80 Programs recovery fee programs to implement the this determination on section 303A(i) of were not established under the authority requirements of section 304(d)(2) of the the Magnuson-Stevens Act. Section of section 303A of the Magnuson- Magnuson-Stevens Act. The specific 303A(i) states: ‘‘[t]he requirements of Stevens Act, they do meet the definition fisheries, the NMFS Region where those this section [303A] shall not apply to of a ‘‘limited access privilege’’ under cost recovery fee programs were any quota program, including any section 3 of the Magnuson-Stevens Act. implemented, and the date the cost individual quota program, cooperative A ‘‘limited access privilege’’ includes an recovery fee programs were program, or sector allocation for which ‘‘individual fishing quota.’’ The AFA, implemented, are provided in Table 1. a Council has taken final action or Aleutian Islands Pollock, and For a more detailed discussion of these which has been submitted by a Council Amendment 80 Programs meet the programs, see section 1.8.2 of the RIR/ to the Secretary, or approved by the definition of an ‘‘individual fishing IRFA.

TABLE 1—LIMITED ACCESS PRIVILEGE PROGRAMS WITH A COST RECOVERY COMPONENT BY NMFS REGION

NMFS Region Limited Access Privilege Program

Greater Atlantic Region ...... Atlantic Sea Scallop Individual Fishing Quota (73 FR 20090, April 14, 2008). Golden Tilefish Individual Transferable Quota (74 FR 42580, August 24, 2009). Southeast Region ...... Red Snapper Individual Fishing Quota (71 FR 67447, November 22, 2006). Grouper-Tilefish Individual Fishing Quota (74 FR 44732, August 31, 2009).

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TABLE 1—LIMITED ACCESS PRIVILEGE PROGRAMS WITH A COST RECOVERY COMPONENT BY NMFS REGION—Continued

NMFS Region Limited Access Privilege Program

West Coast Region ...... Groundfish Trawl Rationalization (75 FR 78344, December 15, 2010). North Pacific Region ...... Halibut and Sablefish Individual Fishing Quota Program (65 FR 14919, March 20, 2000). Crab Rationalization Program (70 FR 10174, March 2, 2005). Rockfish Program (76 FR 81248, December 27, 2011).

The U.S. Government Accountability NMFS–F/SPO–86, available at http:// additional detail on the costs subject to Office (GAO) examined cost recovery spo.nwr.noaa.gov/tm/tm86.pdf). NOAA cost recovery fee collection. This fee programs in 2005 (March 2005, GAO clarified this policy guidance in the proposed action is intended to be Report to Congressional Requestors NOAA Catch Share Policy (November consistent with the recommendations of GAO–05–24, available at http:// 2011, NOAA Catch Share Policy, the 2005 GAO report and established www.gao.gov/new.items/d05241.pdf). At available at http://www.nmfs.noaa.gov/ NOAA policy on cost recovery fee the time, NMFS had only established sfa/management/catch_shares/about/ programs. one cost recovery fee program for the documents/noaa_cs_policy.pdf. The II. Background Halibut and Sablefish Individual NOAA Catch Share Policy states that: The following sections provide a brief Fishing Quota Program (Halibut and It is NOAA policy to compute and recover Sablefish IFQ Program). NMFS had from participants only the incremental background on each of the programs for determined that the actual costs to operating costs associated with limited which NMFS proposes to implement a recover for the Halibut and Sablefish access privilege programs. . . . The relevant cost recovery fee program. For a more IFQ Program were the incremental costs costs to recover are the incremental costs, detailed description of each of these of the program, (i.e., those costs that i.e., those costs that would not have been programs, please see section 1.5 of the would not have been incurred but for incurred but for the limited access privilege RIR/IRFA. program, since cost recovery is not the program). authorized for non-limited access privilege A. AFA Program The GAO report examined the Halibut program fisheries. Conceptually, measuring On October 21, 1998, the President and Sablefish IFQ Program and found these costs involves a ‘‘with and without’’ that NMFS was recovering the costs of comparison of the cost of running the signed into law the AFA, which was management and enforcement, as management program for the specified Title II-Fisheries, Subtitles I and II, required by the Magnuson-Stevens Act fishery under the status quo non-limited within the Omnibus Appropriations Bill (see p. 4 of GAO–05–241). The GAO access privilege program regime, relative to FY 1999, Public Law 105–277. The report noted that the Magnuson-Stevens the costs attributable to implementing the AFA, as enacted in 1998, is available on Act does not define ‘‘actual costs’’ as limited access privilege program. the NMFS Alaska Region Web site: directly related to the management and NOAA has determined that recovering https://alaskafisheries.noaa.gov/ enforcement of an ‘‘individual fishing incremental costs is appropriate because sustainablefisheries/afa/afa1998.pdf. quota’’ program. The GAO report noted the Magnuson-Stevens Act specifies The purpose of the AFA was to clarify that actual costs could be interpreted as collection of a fee to recover the actual U.S. ownership standards for U.S. the full costs of managing an individual costs directly related to the fishing vessels and to provide the Bering fishing quota program rather than those management, data collection, and Sea pollock fleet the opportunity to costs that are directly attributable to the enforcement of limited access privilege eliminate the race to harvest Bering Sea implementation of an individual fishing program or the CDQ Program. pollock through the allocation of a quota program (e.g., incremental costs). Incremental costs refer only to the costs percentage of the TAC of Bering Sea However, after reviewing the that are added because of the pollock that may be received or held for methodology for calculating recoverable implementation of a limited access exclusive use by a person. The AFA costs in the Halibut and Sablefish IFQ privilege program or the CDQ Program. established specific allocations of Program, the GAO report did not For example, a fishery stock assessment Bering Sea pollock; requirements for recommend that NMFS change its would be required whether or not a participation by catcher vessels, policy of collecting incremental costs limited access privilege program or CDQ catcher/processors, motherships, and (see p. 23 of GAO–05–241). Program existed. Under section processors; excessive share limits; One of the two key recommendations 304(d)(2) of the Magnuson-Stevens Act, monitoring and enforcement provisions; of the GAO report is that NOAA should NMFS is not authorized to recover costs and annual reporting requirements. establish cost recovery fee programs as from non-limited access privilege NMFS allocates the Bering Sea required and authorized by section program or non-CDQ Program fishery pollock TAC to the AFA Program as a 304(d)(2) of the Magnuson-Stevens Act participants. Therefore, having directed fishery allowance after for all management programs to which participants in the limited access subtracting the CDQ Program allocation they would apply. The other privilege programs or the CDQ Program of 10 percent of the TAC, and after recommendation was to develop pay fees to cover the costs of a stock subtracting a portion of the TAC as an guidance as to which costs are to be assessment would not be consistent incidental catch allowance to recovered and, when actual information with current NOAA policy. However, if accommodate the incidental catch of is unavailable, how to estimate the costs specific permits, monitoring and catch pollock in non-pollock directed (see p. 22 of GAO–05–241). accounting provisions, or enforcement fisheries (e.g., the incidental catch of NOAA has established policy requirements are needed to manage, pollock in the directed fishery for guidance to define the methods for collect data, or enforce a limited access Pacific cod). The remaining TAC is determining costs and implementing privilege program or CDQ Program, it further allocated to three AFA sectors: cost recovery fee programs for limited would be appropriate to recover fees for 50 percent allocation to catcher vessels access privilege programs (November those costs. See the ‘‘Reimbursable harvesting pollock for processing by 2007, NOAA Technical Memorandum Costs’’ section of this preamble for shoreside processors (inshore sector); 40

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percent allocation to catcher vessels and sector. The AFA Offshore Joint Islands subarea pollock TAC to the catcher/processors harvesting pollock Cooperative is defined under annual Aleut Corporation. for processing by catcher/processors cooperative reports submitted to NMFS NMFS implemented the requirements (catcher/processor sector); and a 10 (Cooperative Reports, NMFS Alaska of the Consolidated Appropriations Act percent allocation to catcher vessels Region Web site, http:// of 2004 with Amendment 82 to the FMP harvesting pollock for processing by alaskafisheries.noaa.gov/ in 2005 (70 FR 9856, March 1, 2005). motherships (mothership sector). Under sustainablefisheries/afa/afa_sf.htm). All Regulations implementing Amendment the AFA, a catcher vessel may only but one participant who harvests 82 define the amount of pollock TAC harvest pollock; a catcher/processor pollock allocated to the catcher/ that may be allocated in the Aleutian may harvest and process pollock; and a processor sector is a member of the AFA Islands subarea and how the Aleut mothership may only receive and Offshore Joint Cooperative. Section Corporation may harvest its portion of process pollock. 208(e)(21) of the AFA expressly limits this allocation. The Aleutian Islands Section 208 of the AFA determined the amount of harvest by the one pollock TAC is allocated to the Aleut which vessels and which processors participant in the catcher/processor Corporation for a directed pollock were eligible to participate in the sector who is not a member of the AFA fishery after subtracting the CDQ inshore sector, the catcher/processor Offshore Joint Cooperative to 0.5 Program allocation of 10 percent of the sector, and the mothership sector. percent of the TAC assigned to the TAC, and after subtracting an incidental NMFS issued AFA permits to 112 catcher/processor sector, thereby catch allowance to accommodate the catcher vessels, 21 catcher/processors, providing an exclusive harvest privilege incidental catch of pollock in non- and three mothership vessels. Section to all the AFA Offshore Joint pollock directed fisheries. 210 of the AFA allowed the formation Cooperative members. The participant Prior to 2015, NMFS prohibited of fishery cooperatives in each AFA who is not a member of the AFA directed fishing for pollock inside sector. Under a fishery cooperative, the Offshore Joint Cooperative would not be Steller sea lion critical habitat in the members of a cooperative agree to subject to a cost recovery fee for its Aleutian Islands as a measure to protect divide the pollock allocation that the harvest of pollock under this proposed the endangered Steller sea lion (68 FR cooperative members. The AFA, in rule. Section 1.5.3 of the RIR/IRFA 204, January 2, 2003). Pollock in the section 210(b), specifically regulated the provides additional detail on allocations Aleutian Islands occurs primarily inside formation of inshore cooperatives for to the AFA catcher/processor sector. Steller sea lion critical habitat. These catcher vessels. A catcher vessel with an The owners of all 19 catcher vessels closures of critical habitat in the AFA inshore endorsement has a choice eligible to deliver to a mothership in the Aleutian Islands to directed fishing of participating in the open access Bering Sea pollock fishery have joined precluded directed fishing in the sector, and delivering pollock to any a single cooperative to coordinate Aleutian Islands. Therefore, prior to AFA inshore processor, or contributing harvests. This cooperative harvests the 2015, the allocation to the Aleut its catch history to a cooperative, and exclusive harvest allocation provided to Corporation was not fully harvested and delivering at least 90 percent of its the mothership sector as specified under was reallocated each year to the Bering pollock catch to the processor section 206(b) of the AFA. For Sea pollock fishery. NMFS has associated with the cooperative (AFA additional detail see the Cooperative implemented new regulations that allow section 210(b); 50 CFR 679.4(l)(6)). Reports, NMFS Alaska Region Web site, directed fishing for pollock within Participants in the AFA open access http://alaskafisheries.noaa.gov/ critical habitat in the Aleutian Islands sector would not be subject to cost sustainablefisheries/afa/afa_sf.htm. (79 FR 70286, November 25, 2014). This recovery under this proposed rule Section 1.5.3 of the RIR/IRFA and the may provide additional harvest because these persons do not receive an final rule implementing the AFA opportunities for the Aleut Corporation. exclusive harvest privilege. Currently, provide more detailed information (67 Section 1.5.3 of the RIR/IRFA and the all AFA vessels harvest and deliver FR 79692, December 30, 2002). The final rule implementing the Aleutian pollock through a cooperative, rather amounts of the Bering Sea pollock TAC Islands Pollock Program provide more than in open access. currently allocated to each AFA detailed information (70 FR 9856, Seven inshore cooperatives have cooperative and sector are specified in March 1, 2005). The amount of the formed. The amount of pollock the final 2014 and 2015 harvest Aleutian Islands pollock TAC currently allocated to an inshore cooperative is specifications for the BSAI groundfish allocated to the Aleut Corporation and based on the amount of harvests of the fisheries (79 FR 12108, March 4, 2014). reallocation to the Bering Sea is members of the cooperative specified specified in the final 2014 and 2015 B. Aleutian Islands Pollock Program under section 206(b) of the AFA. For harvest specifications for the BSAI additional information on AFA inshore Originally, the AFA applied to the groundfish fisheries (79 FR 12108, allocations, see NMFS Alaska Region directed pollock fishery in the entire March 4, 2014). Web site, http://alaskafisheries.noaa/ BSAI (section 205(4), section 205(6), gov/sustainablefisheries/afa. section 205(10) of original AFA). The C. Amendment 80 Program A cooperative has formed in the BSAI consists of the Bering Sea subarea Amendment 80 to the FMP identified catcher/processor sector to harvest the and the Aleutian Islands subarea (see participants using trawl catcher/ exclusive harvest allocation provided to regulatory definitions in § 679.2). In processors in the BSAI who are active this sector. Participants in the catcher/ 2004, Congress separated the in groundfish fisheries other than Bering processor sector have a joint agreement management of pollock between the Sea pollock (i.e., the head-and-gut fleet called the ‘‘Cooperative Agreement Bering Sea and Aleutian Islands or Amendment 80 vessels) and between Offshore Pollock Catchers’ pursuant to the requirements of the established a framework, known as the Cooperative and Pollock Conservation Consolidated Appropriations Act of Amendment 80 Program, to regulate Cooperative’’ (AFA Offshore Joint 2004 (Public Law 108–199). Under the fishing by this fleet (72 FR 52668, Cooperative) to facilitate efficient requirements of the Consolidated September 14, 2007). The Amendment harvest management and accurate Appropriations Act of 2004, NMFS 80 Program allocates a portion of the harvest accounting between the allocates an exclusive harvest allocation TACs of six species in the BSAI: Atka participants in the catcher/processor representing a portion of the Aleutian mackerel, Pacific cod, flathead sole,

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rock sole, yellowfin sole, and Aleutian Region Web site, http:// www.alaskafisheries.noaa.gov/cdq/ Islands Pacific ocean perch between the alaskafisheries.noaa.gov/ current_historical.htm. Amendment 80 Program and other trawl sustainablefisheries/amds/80/ NMFS first allocates crab, halibut and fishery participants. default.htm). groundfish TACs to the CDQ Program, The Amendment 80 program created Section 1.5.1 of the RIR/IRFA and the and then apportions the remaining TAC Amendment 80 quota share based on final rule implementing the Amendment among other non-CDQ fishery the historic catch of quota share species 80 Program provide more detailed participants. Because CDQ crab by Amendment 80 vessels, facilitated information (72 FR 52668, September allocations are already subject to a cost the development of cooperative 14, 2007). The allocations of recovery fee program (70 FR 10174, arrangements (Amendment 80 Amendment 80 species TACs to each of March 2, 2005), they are not addressed cooperatives) among quota the Amendment 80 cooperatives are further in this preamble. The groundfish shareholders, and assigned an exclusive provided in the final 2014 and 2015 species and species groups currently harvest privilege for a portion of the harvest specifications for the BSAI allocated to the CDQ Program, and that TAC of quota share species for groundfish fisheries (79 FR 12108, would be subject to this proposed cost participants in Amendment 80 March 4, 2014). recovery fee program, are specified in cooperatives. The Amendment 80 the final 2014 and 2015 harvest D. CDQ Program Program also allocates crab and halibut specifications for the BSAI groundfish prohibited species catch (PSC) limits to The CDQ Program was implemented fisheries (79 FR 12108, March 4, 2014). constrain bycatch of these species while by NMFS in 1992 (57 FR 46133, October The process for allocating halibut TACs Amendment 80 vessels harvest 7, 1992). Since the implementation of to the CDQ Program is described in a groundfish. The Amendment 80 the CDQ Program, Congress has final rule implementing the Halibut and Program added sideboard limits to amended the Magnuson-Stevens Act to Sablefish IFQ Program (58 FR 59375, protect other fisheries from the potential define specific allocations to the CDQ November 9, 1993). The allocation of adverse effects arising from the Program, as well as eligibility to halibut to the CDQ Program varies by exclusive harvest privileges provided participate in the CDQ Program. halibut management area and ranges under the Amendment 80 Program. A total of 65 villages are authorized from 20 to 100 percent of the area TACs. NMFS identified 28 catcher/processor under section 305(i)(1)(D) of the The fishery resources allocated to the vessels that are eligible to participate in Magnuson-Stevens Act to participate in CDQ Program and the CDQ groups are the Amendment 80 Program and NMFS has issued quota share based on the the CDQ Program. Six CDQ groups under Federal jurisdiction, and NMFS historic catch of these vessels. NMFS represent these villages. The CDQ remains primarily responsible for has issued Amendment 80 quota share groups include the Aleutian Pribilof groundfish and halibut CDQ fisheries to 27 eligible persons. One person who Island Community Development management. However, the State of owns an eligible catcher/processor did Association (APICDA), the Bristol Bay Alaska (State) also retains some not elect to apply for and receive Economic Development Corporation management responsibility for the CDQ Amendment 80 quota share and would (BBEDC), the Central Bering Sea Program. The State may incur costs in not be subject to the provisions of this Fishermen’s Association (CBSFA), the the management and enforcement of the proposed rule because this person does Coastal Villages Region Fund (CVRF), CDQ Program that would be subject to not receive an exclusive harvest the Norton Sound Economic a cost recovery fee. Section privilege for a portion of the Development Corporation (NSEDC), and 304(d)(2)(C)(ii) of the Magnuson-Stevens Amendment 80 species TACs. the Yukon Delta Fisheries Development Act provides that NMFS transfer up to Amendment 80 quota shareholders may Association (YDFDA). CDQ groups 33 percent of any cost recovery fee annually elect to form a cooperative manage and administer CDQ allocations collected for the CDQ Program ‘‘in order with other Amendment 80 quota and use the revenue derived from the to reimburse such State for actual costs shareholders to receive an exclusive harvest of their CDQ allocations to fund directly incurred in the management harvest privilege for the portion of economic development activities and and enforcement of [the CDQ Program].’’ Amendment 80 species TACs resulting provide employment opportunities on This proposed rule anticipates that the from the cooperative member’s behalf of the villages they represent. See State may apply to NMFS for aggregated quota share holdings. This section 1.5.2 of the RIR/IRFA for reimbursement of its management and ‘‘cooperative quota’’ (CQ) is the amount additional information on the CDQ enforcement costs. The potential costs of Amendment 80 species TACs Program. subject to reimbursement are described dedicated for exclusive use by that Section 305(i)(B) of the Magnuson- in section 1.5.2 of the RIR/IRFA and the cooperative. Stevens Act specifies the proportion of ‘‘CDQ Program’’ section of this Annually, each Amendment 80 quota the crab, groundfish, and halibut TACs preamble. shareholder elects to participate either in the BSAI allocated to the CDQ Section 305(i)(1)(G) of the Magnuson- in a cooperative or the limited access Program. Section 305(i)(C) of the Stevens Act designates specific fishery. Participants in the limited Magnuson-Stevens Act specifies the administrative oversight responsibilities access fishery do not receive an proportion of the overall CDQ Program for the CDQ Program to an exclusive allocation for a portion of the allocations assigned to each CDQ group. Administrative Panel. Section TACs allocated to the Amendment 80 The proportion of the CDQ Program 305(i)(1)(G) specifies that the Program. Participants in the allocations of each species assigned to Administrative Panel shall coordinate Amendment 80 limited access fishery each of the six CDQ groups is described and facilitate activities of the CDQ would not be subject to cost recovery in a final rule defining the regulation of groups and administer those aspects of under this proposed rule because these the CDQ Program (71 FR 51804, August the CDQ Program not otherwise persons do not receive an exclusive 31, 2006). Each year, NMFS publishes addressed in section 305(i)(1), including harvest privilege. Since 2011, all quota the specific annual allocations of CDQ economic development aspects of the shareholders have participated in one of groundfish and halibut TACs to each CDQ Program. Currently, the Western two cooperatives. (For additional detail CDQ group on the Alaska Region Web Alaska Community Development see Cooperative Reports, NMFS Alaska site at http:// Association (WACDA) serves as the

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Administrative Panel specified in the 31 of each year, which is in the last by dividing total program costs by the Magnuson-Stevens Act. quarter of the calendar year in which total ex-vessel value for all fishery the fish were harvested. NMFS would species under a program; and (6) III. Cost Recovery—General notify each permit holder of their calculate the fee amount that will be As described in the ‘‘Statutory calculated fee liability for the fishing assessed for each permit holder by Authority’’ section of this preamble, year by December 1 each year in which multiplying the fee percentage by the cost recovery is the process by which the landings were made. Each permit permit holder’s total ex-vessel value of NMFS would recover the actual costs holder would be responsible for the fishery landings under a program. associated with the management, data submitting the fee to NMFS by The final figure would be the annual fee collection, and enforcement (also December 31 of the year in which the owed by each permit holder. referred to as program costs) of the CDQ, landings were made. The fee liability An effective cost recovery fee program AFA, Aleutian Islands Pollock, and payment would need to be submitted to requires using existing data or collecting Amendment 80 Programs. These NMFS electronically by the December program costs would be recovered 31 deadline. additional data to calculate species ex- annually through a fee paid by persons This approach is consistent with other vessel values, using a standardized who hold a permit granting an exclusive cost recovery fee programs implemented methodology to assess program costs, harvesting privilege for a portion of the by NMFS. Annual collection of cost assigning the appropriate fee to each TAC in a fishery subject to cost recovery fees minimizes the person holding a permit, and ensuring recovery. administrative burden on fishery that fees are submitted in full and on NMFS proposes to calculate the cost participants and NMFS by limiting fee time. The primary components of the recovery fee for fish species that are assessment and collection to one time cost recovery fee programs proposed in allocated as exclusive harvest privileges per year rather than requiring this action include defining the: (1) under the CDQ groundfish and halibut, assessment and collection at the time of Person and permit subject to cost AFA, Aleutian Islands Pollock, and each landing or at multiple times recovery fee liability; (2) fee percentage; Amendment 80 Programs as a throughout the year. The use of (3) ex-vessel value; (4) ex-vessel prices; percentage of the ex-vessel value of electronic payment of cost recovery fees (5) information sources; (6) allocated fish species harvested by the would reduce the administrative costs reimbursable costs; (7) fee liability participants in each program. The cost of processing payments, and provides notice and submission method; (8) recovery fee percentage would be an efficient method for permit holders payment compliance; and (9) annual determined annually by the Regional to submit fees. In addition, all of the reporting. Each of these components is Administrator of the NMFS Alaska permit holders subject to a cost recovery discussed in the following sections of Region and published in a Federal fee regularly report to NMFS using the preamble. Register notice each year. NMFS would electronic means and it is a submission calculate cost recovery fees only for fish method readily available to them. The A. Person and Permit Subject to Cost that are landed and deducted from the details of the proposed procedures for Recovery Fee Liability TAC in the fisheries subject to cost the collection of cost recovery fees for To implement a cost recovery fee recovery under the proposed action. the CDQ, AFA, Aleutian Islands program, NMFS must identify the NMFS would not calculate cost recovery Pollock, and Amendment 80 Programs fees for any portion of a permit holder’s person and permit that are subject to the are discussed in detail below in the fee liability. As described above in the exclusive harvest privilege that was not ‘‘Proposed Action’’ section of this landed and deducted from the TAC. For ‘‘Statutory Authority’’ section, the preamble. Magnuson-Stevens Act definition of the purposes of this rule, ‘‘permit To calculate the annual fee liability ‘‘person’’ includes any individual, holder’’ refers to the person who holds for each permit holder in the CDQ, AFA, corporation, partnership, association, or the exclusive harvest privilege in the Aleutian Islands Pollock, and other non-individual entity. The permit specific fishery. These methods for Amendment 80 Programs, NMFS would is the documentation that grants a assessing cost recovery fees on landed (1) calculate the standard price for each person an exclusive harvest privilege. catch and the designation of the permit fishery species allocated under a holder are consistent with the cost program; (2) calculate the ex-vessel In each of the cost recovery fee recovery fee programs already value of each fishery species allocated programs proposed in this action there implemented and NOAA policy under a program by multiplying the is documentation that grants a person guidance. standard price by the total amount of permission to fish for a certain Section 304(d)(2)(B) of the Magnuson- landings in each fishery under a percentage or specific amount of the Stevens Act specifies that a cost program; (3) calculate the total ex-vessel TACs allocated to that program. The recovery fee ‘‘shall be collected at either value of all fisheries landed under a person receiving the exclusive the time of the landing, filing of a program by adding together the ex- harvesting privilege and the nature of landing report, or sale of such fish vessel values of each fishery species the permit providing that privilege is during a fishing season or in the last under a program; (4) calculate the total different for each of the proposed cost quarter of the calendar year in which program cost by adding together the recovery fee programs, as shown in the fish is harvested.’’ NMFS proposes costs of managing each fish species Table 2. A more detailed description of to collect the cost recovery fee for the under a program; (5) calculate a fee the person and permit that would be CDQ groundfish and halibut, AFA, percentage (not to exceed three percent subject to cost recovery for each Aleutian Islands Pollock, and of the ex-vessel value of fish harvested program is provided in the ‘‘Proposed Amendment 80 Programs by December under any such program) for a program Action’’ section of this preamble.

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TABLE 2—SUMMARY OF PROPOSED COST RECOVERY FEE PROGRAMS, PERSON(S) RECEIVING THE EXCLUSIVE HARVEST PRIVILEGE, AND THE ‘‘PERMIT’’ AUTHORIZING THE HARVEST PRIVILEGE

Person receiving an exclusive Proposed Cost Recovery Fee harvest privilege for a portion of a Annual permit authorizing exclusive harvest privilege for a portion of Program fishery TAC a fishery TAC

CDQ Program ...... CDQ group ...... Annual CDQ Group Quota Allocations matrix on Alaska Region Web site at http://alaskafisheries.noaa.gov. AFA Inshore Sector ...... AFA Inshore Cooperative ...... AFA inshore cooperative fishing permit. AFA Catcher/Processor Sector ...... AFA Offshore Joint Cooperative ... Table 3 of the BSAI final groundfish harvest specifications published in the Federal Register. AFA Mothership Sector ...... AFA Mothership Cooperative ...... Table 3 of the BSAI final groundfish harvest specifications published in the Federal Register. Aleutian Islands Pollock ...... Aleut Corporation ...... Table 3 of the BSAI final groundfish harvest specifications published in the Federal Register. Amendment 80 ...... Amendment 80 cooperative ...... Amendment 80 CQ permit.

In addition to specifying the person subject to the cost recovery fee liability For example, if a retroactive payment subject to cost recovery, NMFS would for the current calendar year. Under the is received after the initial payment was require program participants to proposed regulations, the fee percentage made at the time of landing, but during designate an individual who would be is calculated using the program costs the same calendar year in which the responsible for submitting the cost from the most recent Federal fiscal year. landing was made, the cost recovery fee recovery fee to NMFS. A more detailed Specifically, a cost recovery fee program for those retroactive payments also description of this proposed participant would be required to pay would be due by December 31 of the requirement is provided in section IV of their fee by December 31 of a calendar year in which the landings were made. this preamble. year, based on the costs incurred for If retroactive payments are received by management, data collection, and permit holders during the year B. Fee Percentage enforcement of that program from following the calendar year when those Section 304(d)(2) of the Magnuson- October 1 of the previous calendar year fish were landed, then cost recovery fees Stevens Act specifies that a cost through September 30 of the current associated with those post-season recovery fee may not exceed three calendar year. retroactive payments would be due by percent of the ex-vessel value of the fish NMFS intends to use this accounting December 31 of the calendar year the harvested under the fisheries subject to method to ensure that program costs retroactive payments were received and cost recovery. Sections 1.8.4, 1.8.5, and associated with the management, data be subject to the cost recovery fee in 1.8.6 of the RIR/IRFA estimate the cost collection, and enforcement of a limited effect for the calendar year in which the recovery fee percentage for the CDQ, access privilege program and the CDQ retroactive payment was made. This AFA, Aleutian Islands Pollock, and Program can be reviewed, by NMFS, method for calculating ex-vessel value is Amendment 80 Programs based on prior to the time that the cost recovery similar to the method used in the cost estimated ex-vessel revenue and fee is due. It would also reduce recovery fee program for the Rockfish program costs from 2010 through 2013. administrative burden and costs to track Program (76 FR 81248, December 27, The estimated annual cost recovery fee program costs as they currently accrue 2011). Section 1.7.2 of the RIR/IRFA percentages for the proposed cost and are debited from specific accounts, provides additional detail on the recovery fee programs range from a on a Federal fiscal year basis. NMFS calculation of ex-vessel value and minimum of 0.29 percent of the ex- would calculate and publish the fee retroactive payments. vessel value of Bering Sea pollock percentage for the CDQ groundfish and allocated to AFA inshore cooperatives halibut, AFA and Aleutian Islands D. Ex-Vessel Prices to a maximum of 1.62 percent of the ex- Pollock, and Amendment 80 Programs NMFS would use standard prices vessel value of fisheries allocated to in the Federal Register by December 1 rather than actual prices to calculate the Amendment 80 cooperatives. To reach of the year in which landings subject to ex-vessel value of landings for each the maximum fee percentage, program cost recovery were made. fishery species. A standard price would costs would have to increase be determined using information on significantly or fishery revenue would C. Ex-Vessel Value landings purchased (volume) and ex- need to decline significantly. NMFS The ex-vessel value of fish harvested vessel value paid (value). The does not anticipate increases in under a permit would equal the sum of processors of fish harvested under the management costs or declines in fishery all payments of monetary worth made CDQ groundfish and halibut, AFA, revenue by amounts large enough to for the sale of raw, unprocessed catch of Aleutian Islands Pollock, and reach the three percent level in the the species subject to cost recovery. This Amendment 80 Programs would foreseeable future in any of the would include any retroactive payments provide this information. NMFS would proposed cost recovery fee programs. (e.g. bonuses, delayed partial payments, annually summarize volume and value The cost recovery fee percentage for a post-season payments) made for fish information for landings of all fishery cost recovery program would be equal to harvested under a permit for previously species subject to cost recovery in order the program costs divided by the ex- landed fishery species. Retroactive to estimate a standard price for each vessel value of the fishery species payments would be part of the ex-vessel fishery species, except for rock sole. covered by that program. The program value and as such have a fee liability. Rock sole is allocated to and costs would be the program costs for the The fee liability for retroactive harvested by vessels participating in the most recent Federal fiscal year, and the payments would be based on the fee Amendment 80 and CDQ Programs. ex-vessel value of the fishery species is percentage in effect at the time the fish Rock sole volume and value reports the ex-vessel value of the landings was received by the processor. would be reported once each year, but

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fees would be assessed based on the basis from other sources to determine a harvested by trawl gear and Pacific cod volume and value of landings of rock standard price paid by processors for a harvested by fixed gear. The fixed gear sole that occur in the first quarter of the fishery species subject to cost recovery. standard price would apply to all year (January 1 through March 31), and This approach minimizes the cost and landings made by vessels subject to cost fees would be assessed based on the burden of recordkeeping and reporting recovery and using hook-and-line, jig, or aggregated volume and value of requirements on fishery participants. pot gear. A standard price would be landings in the last three quarters of the In developing the proposed rule, determined for trawl and fixed gear year (April 1 through December 31). The NMFS held public workshops in separately because the ex-vessel value of difference in reporting requirements for Anchorage, AK, and Seattle, WA, in Pacific cod can differ between trawl and rock sole arises from the need to capture 2013 to receive input from affected fixed gear (see section 1.7.2.2 of the RIR/ significant differences in price and industry participants on appropriate IRFA for additional detail). value in the rock sole that are landed in methods for calculating the standard The standard price for trawl gear the first quarter of the year compared to price for specific fishery species (78 FR would be used for Amendment 80 the price and value in the remaining 25426, May 1, 2013). Participants in cooperatives and for trawl vessels part of the year. See Section 1.7.2.2.5 of these public workshops supported the harvesting Pacific cod allocated to CDQ the RIR/IRFA for additional detail on methods proposed for calculating the groups. The standard price for fixed gear rock sole prices. standard price in this rule. The would be used for vessels harvesting Use of a standard price is not following sections of the preamble Pacific cod for CDQ groups using hook- precluded under section 304(d)(2) of the describe the methods NMFS would use and-line, jig, or pot gear. Because Magnuson-Stevens Act. NMFS uses a to collect and aggregate volume and Amendment 80 cooperatives only standard price in the cost recovery fee value data to calculate standard prices harvest Pacific cod using trawl gear, programs for the Crab Rationalization and ex-vessel values. NMFS does not anticipate using a Program and the Rockfish Program. The standard price derived from fixed gear 1. Volume and Value Reports use of an actual price would require that vessels for Amendment 80 cooperatives. the permit holder or a designated Two types of new volume and value The second type of new volume and representative document all landings reports would be required under the value report that would be required is and prices for fishery species subject to proposed action—a Pacific Cod Ex- the First Wholesale Volume and Value cost recovery. This additional Vessel Volume and Value Report and a Report. A First Wholesale Volume and documentation can impose additional First Wholesale Volume and Value Value Report would be used to collect costs on permit holders to document Report. volume and value data for all fishery and retain information on all landings This proposed rule would require species of groundfish allocated to the and prices. The cost recovery fee shoreside processors, designated on a Amendment 80 and CDQ Program program for the Halibut and Sablefish Federal Processor Permit (FPP), and except for fixed gear sablefish, halibut, IFQ Program allows permit holders to motherships, designated on a Federal Pacific cod, and pollock. Section 1.7 of use either standard or actual prices. Fisheries Permit (FFP), that process the RIR/IRFA lists each fishery species However, very few Halibut and landings of either CDQ Pacific cod or that would be subject to the Sablefish IFQ permit holders have used BSAI Pacific cod harvested by a vessel requirements of a First Wholesale actual prices. Based on that experience, using trawl gear to submit a Pacific Cod Volume and Value Report. The NMFS proposes to use a standard price Ex-vessel Volume and Value Report. instructions on the First Wholesale in all cost recovery fee programs The Pacific Cod Ex-vessel Volume and Volume and Value Report would also proposed under this action. NMFS Value Report would require shoreside list these species on an annual basis. would publish the standard prices by processors and motherships to submit This proposed rule would require that fishery species in the Federal Register information including the total pounds Amendment 80 vessel owners submit a by December 1 of year in which the of Pacific cod purchased, the total gross First Wholesale Volume and Value landings subject to cost recovery were ex-vessel value paid by gear type (trawl Report. NMFS would use data from made. and fixed gear), as well as identifying Amendment 80 vessels to calculate information for the processor (i.e. standard prices for species covered by E. Information Used to Calculate Ex- Federal processor permit number, the First Wholesale Volume and Value Vessel Value mailing address, contact phone number, Report because these species are NMFS proposes three methods for etc.). The total pounds of Pacific cod harvested primarily, if not almost collecting and aggregating volume and purchased and the total gross ex-vessel exclusively, by Amendment 80 vessels value data to calculate standard prices. value paid by each gear type from (see Section 1.7.2.1 of the RIR/IRFA for The first method would implement data January 1 through October 31 of each additional detail). The First Wholesale collection using two new volume and year would be reported as aggregated Volume and Value Report would require value reports to calculate standard data. NMFS notes that shoreside information on the fishery species and prices for all fishery species other than processors and motherships already pounds harvested, the first wholesale halibut and pollock. The second method collect these data as part of their value of the fishery species, as well as would use data already collected under existing business operations, and to identifying information for the catcher/ the IFQ Buyer Report to calculate comply with other data collection processor (i.e., Federal Fisheries Permit standard prices for halibut. The third requirements. Therefore, only the number, mailing address, contact phone method would use data already submission of this information to NMFS number, etc.). The pounds harvested collected under the Commercial by November 10 would be a new and first wholesale value from January Operator’s Annual Report (COAR) to requirement. 1 through October 31 each year would calculate standard prices for pollock. The information submitted would be be reported as aggregated data, with one NMFS proposes to implement the two used by NMFS to calculate an annual exception for rock sole. Section 1.7.2.2.5 new volume and value reports for standard price for Pacific cod for of the RIR/IRFA notes that rock sole fishery species other than halibut and Amendment 80 cooperatives and CDQ wholesale values differ substantially pollock because sufficient information groups. NMFS would calculate a between first quarter values and second is not otherwise available on a timely separate standard price for Pacific cod to fourth quarter values. During the first

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quarter of the year (January 1 through due on November 10. NMFS proposes to the first ten months of the year March 31) rock sole contain roe and this this time period to allow enough time (January 1 through October 31). product is worth substantially more for submitter to prepare the reports and Members of the industry that than rock sole product that does not for NMFS to prepare the standardized participated in the public workshops contain roe landed later in the year. prices to be published in the Federal did not raise concerns about this Therefore, NMFS would collect data Register by December 1 of the year in approach. NMFS notes that it would from January 1 through March 31 to which the landings were made. These continue to monitor ex-vessel prices establish a standard price for rock sole reports would need to be submitted received through the COAR, as well as landed during this period, and use data electronically through the Alaska through feedback from affected industry from April 1 through October 31 to Region Web site at http:// participants. If needed, NMFS can establish a standard price for rock sole alaskafisheries.noaa.gov. Electronic adjust the reporting period in the future landed for the remainder of the calendar submittal would reduce costs, through subsequent rulemaking to year. Amendment 80 vessel owners administrative burden, and ensure that reflect any variations in prices that may already collect these data to comply the reports are submitted in a timely be observed. with other data collection requirements. fashion. 2. IFQ Buyer Report Therefore, only the submission of this The standard price for the entire NMFS currently requires participants information to NMFS in the First calendar year for species subject to cost Wholesale Volume and Value Report by in the Halibut and Sablefish IFQ recovery fees other than fixed-gear Program to submit a cost recovery fee November 10 of the year in which the sablefish, halibut, and pollock would be landings were made would be a new based on either actual prices, or based on volume and value data from standard prices, for IFQ halibut and requirement. January 1 through October 31. NMFS The data from the First Wholesale sablefish. Standard prices are expects these data would provide an Volume and Value Report would satisfy determined based on information from accurate ex-vessel price for fish requirements in section 304(d)(2) of the an IFQ Buyer Report (see harvested in November and December Magnuson-Stevens Act that cost § 679.5(l)(7)(i)). An IFQ Buyer Report is for several reasons. First, for many recovery fees be based on the ex-vessel required from each IFQ registered buyer fisheries, effort in November and value of fish. The First Wholesale that operates as a shoreside processor December subsides. Therefore, landings Volume and Value Report would be and that receives and purchases IFQ in those fisheries in November and used to obtain volume and value halibut or sablefish or CDQ halibut. The information for directed fisheries where December represent a small proportion IFQ Buyer Report includes information fishery species are harvested and of overall annual harvests. For example, regarding volume and value of IFQ processed exclusively, or almost landings of Atka mackerel, sablefish, halibut and sablefish and CDQ halibut exclusively, by trawl catcher/processors. Pacific cod, and Pacific ocean perch landings by month, port, and IFQ For these fishery species, there is no have generally concluded by October 31 registered buyer. reliable ex-vessel price generated from and few landings are made in November The IFQ Buyer Report is based upon the sale of fish from a harvester to a and December relative to the rest of the a reporting period from October 1 of the processor. Therefore, the ex-vessel price year. Second, NMFS reviewed previous year to September 30 of the for those fishery species must be information from existing data sources, current year. The IFQ Buyer Report is estimated. An ex-vessel price can be such as the COAR, and determined that due on October 15 each year. NMFS estimated by using information on the ex-vessel values for fishery species proposes using the standard prices first wholesale price. The first wholesale proposed for cost recovery do not differ calculated from the IFQ Buyer Report price is the market price of the primary substantially in November and for the Halibut and Sablefish IFQ processed fishery product. December relative to ex-vessel values Program to establish standard prices and Since the late 1990s, the Alaska prior to October. Therefore, even if data ex-vessel values for CDQ halibut and Fisheries Science Center (AFSC) has were collected from landings in fixed gear sablefish by month. NMFS imputed an ex-vessel price for fish from November and December it would not would use standard prices and ex-vessel the first wholesale price based on a be expected to have a substantive effect values calculated from information fraction of the processed-product price. on the annual estimate of ex-vessel price already required to be submitted under The imputed ex-vessel price, also for a fishery species (See Section 1.7.2.2 current regulations to avoid duplication referred to as the proxy price, is the of the Analysis for additional detail). with other data collection programs, and value of processed products from Although rock sole prices do fluctuate eliminate the costs and burden catcher/processor vessels divided by the during a calendar year, NMFS would be associated with developing a new data retained round-weight (unprocessed collecting data during the first quarter of collection method for establishing weight) of catch and multiplied by a the year (from January 1 through March standard prices and ex-vessel value for factor of 0.4 to correct for the value 31) and from the remainder of the year the CDQ fisheries. NMFS would be able added to the fish product by processing. (April 1 through October 31) to reflect to determine a standard prices and ex- Processed product values and round those intra-annual variations in prices. vessel values for the CDQ halibut and weights would be derived from the First In the specific case of rock sole, prices fixed-gear sablefish fisheries harvested Wholesale Volume and Value reports after April 1 and through October 31 are from October 1 of the previous calendar submitted by Amendment 80 vessels. A relatively constant and similar to prices year through September 30 of the more detailed discussion of the methods in November and December. Therefore, current year and provide that for determining a proxy price can be collecting data on rock sole prices after information to CDQ groups by December found in section 1.7.2 of the RIR/IRFA October would not provide additional 1 of the current calendar year as part of prepared for this action. detail needed to establish a standard their annual fee liability statement. The reporting period for the Pacific price for rock sole for the last three Cod Ex-vessel Volume and Value Report quarters of the year (April through 3. Commercial Operator’s Annual and the First Wholesale Volume and December 31). Finally, during public Report (COAR) Value Report would be from January 1 workshops, NMFS discussed limiting NMFS proposes to use the COAR to to October 31. These reports would be the volume and value reporting period determine the standard price and ex-

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vessel value for the Bering Sea and most significant factor in determining data collection programs, and eliminate Aleutian Islands pollock fisheries. the ex-vessel value of pollock. the costs and burden associated with Federal regulations at § 679.5(p) require Therefore, NMFS does not anticipate developing a new data collection all processors of fishery resources that using standard prices calculated method. The standard price, as harvested in Alaska to submit the from the COAR would substantively calculated using COAR data from AFA COAR. The COAR collects data on the affect the amount of cost recovery fees inshore processors, would be used to species landed, area where the fish were an AFA cooperative or the Aleut determine the standard price for all harvested, processor receiving delivery, Corporation would have to pay if the fee AFA and Aleutian Islands pollock gear used, pounds purchased, and total liability is not expected to exceed three landings. For more information on the amount paid. The information collected percent of the standard ex-vessel value. COAR, please see http:// in the COAR provides the data needed As noted earlier, NMFS does not expect www.adfg.alaska.gov/ to establish a standard price and ex- the fee for the AFA or Aleutian Island index.cfm?adfg=fishlicense.coar. vessel value for AFA and Aleutian Pollock Programs to exceed three Islands pollock based on deliveries percent in the foreseeable future. Since F. Reimbursable Costs made to AFA inshore processors. the estimates of the cost recovery fees NMFS proposes to recover the Because data from the COAR are not are less than the three-percent limit, the available until November following the incremental costs associated with the precision of the data used to establish management, data collection, and calendar year in which they are the standard price and the standard ex- collected, they are not suitable for use enforcement of the CDQ groundfish and vessel value will have negligible impact halibut, AFA, Aleutian Islands pollock, for establishing a standard price where on the fee liability that would be paid values change substantially from year to and Amendment 80 Programs. As by each entity. year. Section 1.7.2.2.1 of the RIR/IRFA described above in the ‘‘Statutory notes that aggregate prices of pollock do Input from members of the affected Authority’’ section of this preamble, this not change substantially from year to industry during the public workshops is consistent with NOAA policy for year, particularly when aggregated over indicated that they support using implementing cost recovery fee an entire calendar year as proposed in annual COAR data to estimate prices for programs. Section 1.8.3 of the RIR/IRFA this rule. Therefore, COAR data the AFA and Aleutian Islands pollock and Tables 1–34 and 1–35 in the RIR/ collected in the previous calendar year fisheries, even though it would require IRFA includes detailed information could effectively be used to establish a that previous year’s prices are used to about the types of costs that NMFS standard price for BSAI pollock establish a standard ex-vessel value. The incurs in the management of the CDQ fisheries during the current calendar use of COAR data to establish a standard groundfish and halibut, AFA, Aleutian year. ex-vessel value for the BSAI pollock Islands pollock, and Amendment 80 Because the aggregate prices of fisheries would provide a reasonable Programs. These types of incremental pollock tend to remain stable from year- method to establish a standard price, costs that NMFS incurs are summarized to-year, the quantity of harvest is the would avoid duplication with existing in Table 3 below.

TABLE 3—SUMMARY OF THE TYPES OF INCREMENTAL COSTS ASSOCIATED WITH COST RECOVERY PROGRAMS

Cost Example

Equipment Inspections ...... Inspecting at-sea scales that are required and implemented as part of the a cost recovery program to accurately weight harvests (e.g., AFA catcher/processors, Amendment 80 vessels). Information collection and data management ...... Creating and maintaining software programs necessary to track the use of exclusive harvest privileges allocated under a program subject to cost recovery. Rulemaking ...... Labor costs associated with developing and implementing regulations that modify a program subject to cost recovery. Investigations ...... Investigating and enforcing violations associated with a cost recovery program (e.g., costs incurred investigating and enforcing provisions intended to limit the maximum permissible amount of quota share a person may hold and use). Staff meeting travel and outreach ...... Attending and participating in meetings required to address issues related to a cost recovery meeting (e.g., travel associated with providing outreach on new regulatory provisions applicable to a program subject to cost recovery). Catch accounting ...... Modifying catch accounting to specifically track the use of exclusive harvest privileges. Catch monitoring ...... Deploying staff to monitor and track catch for a program subject to a cost recovery program (e.g., the Catch Monitoring and Control Plan Specialist used to monitor catch in the Rockfish Program).

NMFS does not currently account for a detailed accounting of costs once this Halibut and Sablefish IFQ Program, incremental costs for each of these rule became effective, if approved. Crab Rationalization Program, and programs, because there is not a cost NMFS would capture the incremental Rockfish Program. recovery fee program in place for these costs of managing the fisheries through Once the incremental costs for the programs. NMFS has provided estimates an established accounting system that most recent Federal fiscal year are of costs for managing the AFA, Aleutian allows NMFS to track labor, travel, and identified, that amount is recovered Islands pollock, Amendment 80, and procurement. This process is described from all permit holders in the program. CDQ groundfish and halibut Programs in Section 1.8.3 of the RIR/IRFA. This NMFS would adjust the total based on the best available information, accounting system for management management costs, annually, to account but lacks information to provide more costs is consistent with the methods for any adjustments or payments precise estimates. NMFS would provide NMFS uses to account for costs in the received during the previous calendar

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year. For example, if payments received that year. The fee liability summary catch in December and methods NMFS by CDQ groups in 2017 were slightly letter would calculate each permit would use to estimate landings for each greater than the actual management holders’ fee liability. The fee liability program. costs incurred for the CDQ Program for would be calculated by NMFS based on: Any actual landings from December 1 that fee collection period, then NMFS (1) The standard price determined by through December 31 that were less would adjust the total management using data from the applicable volume than the estimated landings during this costs, which would then slightly lower and value report, IFQ Buyer Report, or period would be accounted for in the fee percentage due by the CDQ the COAR; (2) the total amount of reporting for the following year and groups in 2018. Some slight adjustment landings by a permit holder from would result in a credit to the permit in the total management costs to January 1 through November 30 of that holder and would be deducted from the account for rounding, overpayment, or year; (3) NMFS’s estimate of landings permit holder’s fee liability for the corrections to actual costs after the fee for a permit holder from December 1 following year. Any actual landings that liability is due is anticipated. NMFS through December 31 of that year; and were greater than the estimated landings would accommodate these factors on an (4) and NMFS’ actual costs from October would be accounted for in reporting for annual basis by adjusting the fee 1 of the previous calendar year through the following year and would result in percentages in the following year for the September 30 of the current calendar a debit to the permit holder and would affected program. In all cases, the fee year. The total cost recovery fee would be added to the permit holder’s fee percentage could not be set at an need to be submitted electronically to liability for the following year. Section amount higher than three percent of the NMFS no later than December 31 of the 1.10 of the RIR/IRFA also describes how ex-vessel value of a program fisheries calendar year in which the landings NMFS would adjust the fee liability for even if the actual costs for the previous were made. a permit holder from one year to the year exceeded three percent of the Because the fee liability notice would next to account for differences in actual standard ex-vessel value for the be sent on December 1, and the fee and estimated landings from December landings subject to cost recovery. liability is assessed through the end of 1 through December 31. During public workshops held on this the year (December 31), NMFS would A permit holder would incur a fee proposed action, participants in some estimate landings for each permit holder liability for all fish that is landed and fisheries that would be subject to a cost that would be made between December debited against the permit authorizing recovery fee requested that NMFS 1 and December 31. NMFS would the permit holder to land fish in a consider crediting, or reducing, the cost provide an estimate of landings between program subject to cost recovery. This recovery fee for expenses that December 1 and December 31 because it proposed rule would require a permit participants incur to cooperatively is not possible to prepare and provide holder to designate a representative who manage and monitor harvests. NMFS a fee liability notice to each permit would be responsible for submitting this acknowledges that industry has taken an holder for landings through December payment to NMFS on or before the due active role in establishing industry- 31, and require payment from each date of December 31 of the year in based measures to coordinate and permit holder before fishing begins on which the landings were made. NMFS communicate information in fisheries January 1 of the following year. notes that the permit holder must self- for which participants receive an NMFS notes that estimates of landings collect the amount due for all landings exclusive harvest privilege for a portion would only be required for some of the on his or her permit(s). NMFS advises of the TAC, particularly in fisheries that fisheries subject to a cost recovery fee. program participants subject to cost utilize harvest cooperatives. However, In the case of the AFA and Aleutian recovery to ensure that adequate funds regardless of these industry-based Islands Pollock Programs, directed are retained on an annual basis to measures, NMFS has identified actual fishing for pollock is prohibited after ensure that the fee liability can be paid. costs that it incurs that are directly November 1 (see regulations at For example, during the first year of related to the management, data § 679.23(e)(2)(ii)), therefore there would implementation, it may be advisable for collection, and enforcement of these be no need to estimate landings from the permit holder to retain a fixed programs. December 1 through December 31. Some percentage of the value of ex-vessel Expenses that industry incurs that CDQ fisheries are closed prior to prices paid to harvesters for CDQ directly reduce the NMFS’ costs for December 1, including Atka mackerel, groundfish and halibut, AFA, Aleutian implementing and maintaining the fixed-gear sablefish, and halibut (see Islands Pollock, and Amendment 80 program would reduce the cost recovery regulations at § 679.23(e)(4)(iii)). species throughout the year. This would fee. That is, NMFS would not assess a Therefore, there would be no additional ensure that the permit holder could pay fee for any costs it does not incur due landings in December for these fisheries, the required fees for fishing during the to changes in fishing patterns with the and an estimate of landings would not calendar year when the fee is due on implementation of a limited access be required from December 1 through December 31 of that calendar year. The privilege program. Section 1.8 of the December 31. ‘‘Proposed Action’’ section of this RIR/IRFA provides additional detail on For other Amendment 80 and CDQ preamble provides estimates of the costs that are due to the implementation groundfish fisheries (e.g., Pacific ocean range of fee percentages that may be of the AFA, Aleutian Islands Pollock, perch, Pacific cod, yellowfin sole, and required for each of the cost recovery fee Amendment 80, and CDQ Programs other flatfish fisheries), historic data programs, and could be used as a basis including the establishment of new indicate that the amount of landings to establish a reasonable amount for permitting, regulatory provisions, during December are small relative to each permit holder to retain. monitoring requirements, data landings during the previous 11 months, H. Payment Compliance management, and other costs. and NMFS is likely to be able to accurately estimate landings based on This proposed rule would require a G. Fee Liability Notice and Submission the amount of a permit holder’s permit holder to designate a Each year by December 1, NMFS remaining allocation during a year and representative to submit the fee on the would send each permit holder or their projections of landings after December permit holder’s behalf. Any permit designated representative a fee liability 1. Section 1.10 of the RIR/IRFA contains holder who has incurred a fee liability summary letter for the fees required for additional information on landings of would be required to pay the fee

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electronically to NMFS by December 31 the permit holder or designated until payment is received. The interest of the year in which the landings were representative stating their fee liability; rate is set annually by the Department made. A permit holder would need to and 2) disapprove any application to of Treasury. If payment has not been ensure full payment for their cost transfer quota to or from the permit received 90 days after the due date, recovery fee liability by December 31 of holder or group which receives an NMFS may also assess a one-time the year in which the landings were annual allocation. The IAD would state penalty fee of six percent of the amount made. that the permit holder’s estimated fee owned. This proposed rule would establish an liability due from the permit holder had exception to this general requirement not been paid. Any such formal I. Annual Reports for the full payment of a cost recovery determination may be appealed. NMFS would annually publish a fee liability for the AFA Offshore Joint NMFS has recently established a report for each of the proposed cost Cooperative. During public workshops National Appeals Office (NAO) located recovery fee programs about the prior to the development of this at NMFS Headquarters in Silver Spring, performance of the program. The annual proposed rule, participants in the AFA Maryland. In 2014, NMFS adopted rules report would provide information Offshore Joint Cooperative noted the of procedure for NAO appeals in 15 CFR regarding the amount of the fees challenges of adequately coordinating part 906 (79 FR 7056, February 6, 2014). received by NMFS, the disposition of among all members of their cooperative The appeal procedures in 15 CFR part the fees, and the program costs used in given the relatively large numbers of 906 are mandatory for appeals in determining the fee for the previous participants in the AFA Offshore Joint limited access privilege programs year. The annual report is consistent Cooperative. Industry participants developed under section 303A of the with the reports NMFS provides for the suggested that withholding the entire Magnuson-Stevens Act. None of the three other cost recovery fee programs Bering Sea pollock directed fishery programs subject to cost recovery in this implemented in the Alaska Region. allocation to the AFA Offshore Joint proposed rule were developed under Cooperative if a complete and timely section 303A of the Magnuson-Stevens IV. The Proposed Action payment is not received would not be Act, and appeals are not required to be The proposed action would an appropriate management response. heard under the procedural rules at 15 implement a cost recovery fee program NMFS proposes that if the designated CFR part 906. NMFS may, however, use for the AFA, Aleutian Islands Pollock, representative for the AFA Offshore the NAO to review appeals in programs Amendment 80, and CDQ groundfish Joint Cooperative has made a timely where NAO does not have mandatory and halibut Programs. The following payment to NMFS of an amount less jurisdiction. NMFS proposes that the sections provide additional detail on the than the fee liability NMFS estimated, NAO review any appeals submitted primary components of each of the NMFS may choose to issue a quota under the provisions of this proposed proposed cost recovery fee programs, allocation corresponding to the same action. These appeals would use NAO and a discussion of the estimated percentage of the cost recovery fee procedural rules. reimbursable costs and cost recovery received from the cooperative or group. Under NAO procedural rules, an fees for each program. A detailed For example, if only 90 percent of the applicant, a permit holder in this case, description of each proposed cost fee liability were received on a timely who appeals an IAD would not receive recovery fee program can be found in basis, NMFS would only issue 90 a permit designating an exclusive section 1.10 of the RIR/IRFA. percent of the Bering Sea pollock harvest privilege for a portion of the directed fishery TAC to the AFA TAC in limited access privilege program A. Pollock Cost Recovery Fee Programs Offshore Joint Cooperative. or CDQ fisheries until the appeal was 1. AFA Cost Recovery Fee Program NMFS does not propose to extend this resolved in the applicant’s favor. Applicable Entities provision to AFA inshore cooperatives, Finally, upon final agency action, NMFS or the AFA mothership cooperative, may continue to prohibit issuance of As described in the ‘‘American because participants in other AFA permits or quota allocation for any Fisheries Act Program’’ section of this cooperatives did not raise similar subsequent calendar years until NMFS preamble, the AFA allocates the Bering concerns about coordination. NMFS receives full payment of any unpaid Sea pollock TAC to three sectors— would not propose to extend this same fees. If payment is not received within catcher/processor, mothership, and provision to the Amendment 80 or CDQ 30 days after final agency action, the inshore. Each of these sectors created Programs because these programs agency may pursue collection of the one or more cooperatives to promote the receive allocations from more than one unpaid fees. rational and orderly harvest and species, and determining which Upon issuance of final agency action, processing of pollock (see Table 5 of this allocation to withhold due to a partial payment submitted to NMFS in excess preamble). Because management costs payment is not possible. In addition, of any cost recovery fee liability can differ among these three sectors, NMFS has not received a request from determined to be due by the final NMFS proposes to assess management participants in the Amendment 80 or agency action will be returned to the fees for the each of the AFA sectors CDQ Programs to establish such a permit holder unless he or she requests separately. These are explained in provision. NMFS specifically requests the agency to credit the excess amount greater detail in Table 7 of this comment on the need and applicability against the permit holder’s future cost preamble, and section 1.8.6 of the RIR/ of this proposed provision for the AFA recovery fee liability. Payment IRFA. Offshore Joint Cooperative. processing fees may be deducted from NMFS proposes adding regulations at If a permit holder or designated any fees returned to the permit holder § 679.61(e)(1)(vi) that require each AFA representative fails to submit full or designated representative. cooperative include a requirement that payment for their cost recovery fee Administrative fees may be assessed if lists the obligations of members of a liability by December 31 of the year in the account drawn on to pay cost cooperative to ensure the full payment which the landings were made, under recovery fee liability has insufficient of all AFA fee liabilities that may be this proposed rule, NMFS could 1) at funds, or if the account is delinquent. due. This proposed regulation does not any time thereafter send an initial Additionally, interest would begin proscribe the specific measures that an administrative determination (IAD) to accruing the day after the due date up AFA cooperative may choose to

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establish, but does require that those catcher/processor participant who is not recovery fee. The AFA Inshore Catcher provisions are listed in the cooperative a member of the AFA Offshore Joint Vessel Cooperative Permit (see agreement. This requirement is intended Cooperative is not subject to an AFA § 679.5(l)(6)) lists the AFA catcher to encourage and facilitate coordination cost recovery fee. The individual vessels and processors that are members among AFA cooperative members for responsible for submitting the cost of an inshore cooperative and the the timely and complete payment of recovery fee for the catcher/processor percentage of the AFA inshore sector fees. NMFS implemented a similar sector would be the AFA Offshore Joint allocation that a cooperative receives. requirement in the Rockfish Program to Cooperative’s designated representative. The individual responsible for facilitate coordination in that cost The AFA Mothership Fleet submitting the cost recovery fee for each recovery fee program, and the Cooperative would be subject to an AFA inshore cooperative would be the provisions proposed in this rule would cost recovery fee. The AFA Mothership designated cooperative representative be appropriate for the AFA Fleet Cooperative receives an exclusive identified in a cooperative’s application cooperatives. NMFS is proposing a harvest privilege for the AFA for an AFA Inshore Catcher Vessel mothership sector. All participants in similar requirement for Amendment 80 Cooperative Permit. cooperatives. the AFA mothership sector are members The AFA Offshore Joint Cooperative of the AFA Mothership Fleet Table 4 summarizes the information would be subject to an AFA cost Cooperative. The individual responsible used to determine standard prices, any recovery fee. The AFA Offshore Joint for submitting the cost recovery fee for additional reporting requirement, Cooperative receives an exclusive the mothership sector is the Mothership calculation of the standard ex-vessel harvest privilege of up to 99.5 percent Fleet Cooperative’s designated value, the person responsible for of the TAC allocated to the catcher/ representative. submitting the fee payment, and processor sector. As noted earlier in this AFA inshore sector cooperatives submittal requirements and deadlines preamble, the one statutorily defined would be subject to an AFA cost for each AFA cooperative.

TABLE 4—SUMMARY OF THE AFA COST RECOVERY FEE PROGRAM ELEMENTS

What species are subject to a cost recovery fee? Bering sea pollock. How is the standard price determined? NMFS would calculate a standard price based on data from the COAR from the previous calendar year. Are there additional reporting requirements for AFA No. cooperatives to determine the standard price? How will NMFS determine the Standard Ex-vessel NMFS will add total reported landings of Bering Sea pollock from January 1 through No- Value? vember 30, estimate total landings from December 1 through December 31, if any, for each AFA cooperative and multiply that amount by the standard price determined by COAR data to calculate a Standard Ex-vessel value for each AFA cooperative. Who is responsible for fee payment and (how many AFA Catcher/Processor Sector: AFA Offshore Joint Cooperative designated representa- cooperatives are estimated to receive a fee liability tive (1). notice)? AFA Mothership Sector: AFA Mothership Fleet Cooperative designated representative (1). AFA Inshore Sector: designated cooperative representative on each AFA Inshore Catch- er Vessel Cooperative Permit application (7). When are the standard prices published in the Fed- The standard prices are published in the Federal Register by December 1 of each cal- eral Register and when are fee liability notices endar year, and the fee liability notices will be sent to each designated representative sent? by December 1 of each calendar year. When are fee liability payments due and how are Fee liability notices are due by December 31 of each year, and must be submitted on- they submitted? line. Submittal forms are available online at: http://www.alaskafisheries.noaa.gov.

2. Aleutian Islands Pollock Cost would be responsible for submitting the used to determine standard prices, any Recovery Fee Program Applicable cost recovery fee. The CEO of the Aleut additional reporting requirement, Entities Corporation is the designated calculation of the standard ex-vessel representative, unless the Aleut value, the person responsible for The annual Aleutian Islands pollock Corporation Board of Directors notifies submitting the fee payment, and TAC is allocated to the Aleut the Regional Administrator in writing of submittal requirements and deadlines Corporation. The representative an alternate designated representative. for each AFA cooperative. designated by the Aleut Corporation Table 5 summarizes the information

TABLE 5—SUMMARY OF THE ALEUTIAN ISLANDS POLLOCK COST RECOVERY FEE PROGRAM ELEMENTS

What species are subject to a cost recovery fee? Aleutian Islands pollock. How is the standard price determined? NMFS would calculate a standard price based on data from the COAR from the previous calendar year. The standard price would be applied to all landings during a calendar year. Are there additional reporting requirements for the No. Aleut Corporations to determine the standard price? How will NMFS determine the Standard Ex-vessel NMFS will add total reported landings of Aleutian Islands pollock from January 1 through Value? November 30, estimate total landings from December 1 through December 31, if any, and multiply that amount by the standard price determined by COAR data to calculate a Standard Ex-vessel value for each AFA cooperative.

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TABLE 5—SUMMARY OF THE ALEUTIAN ISLANDS POLLOCK COST RECOVERY FEE PROGRAM ELEMENTS—Continued Who is responsible for fee payment and (how many Aleut Corporation (1). cooperatives are estimated to receive a fee liability notice)? When are the standard prices published in the Fed- The standard prices are published in the Federal Register by December 1 of each cal- eral Register and when are fee liability notices endar year, and the fee liability notices will be sent to each designated representative sent? by December 1 of each calendar year. When are fee liability payments due and how are Fee liability notices are due by December 31 of each year, and must be submitted on- they submitted? line. Submittal forms are available online at: http://www.alaskafisheries.noaa.gov.

3. Costs, Values, and Fee Percentage of the Aleutian Islands Pollock Program percent in 2010 to a low of 0.29 percent in 2005, and NMFS has reallocated the in 2012. Because the management costs Table 6 provides a summary of AFA available allocation of Aleutian Islands associated with the AFA catcher/ and Aleutian Islands pollock gross ex- pollock to the Bering Sea fishery. processor, inshore, and mothership vessel revenue, recoverable costs, and Because the directed pollock fishery in sectors are known to vary, Table 6 what the resulting cost recovery fee the Bering Sea is managed under the provides estimates of the cost recovery percentage would have been for 2009 AFA, the revenues and costs from the fee percentage when it is established for through 2013. Recoverable costs are reallocated Aleutian Islands pollock are each sector—catcher/processor (C/P), based on management costs estimated to associated with the AFA. This means mothership (MS), and inshore. Those be incurred by several divisions within that during this time period, the data indicate that the catcher/processor the Alaska Region of NMFS, NOAA recoverable costs would have been sector would pay a greater cost recovery Office of Law Enforcement (NMFS associated with the AFA Program. OLE), and the NMFS Observer Program Those revenues and costs are described fee than the mothership or inshore (Observer Program). NMFS notes that in Table 6 of this preamble. If directed sector. The catcher/processor sector recoverable costs were not identified in pollock fishing occurs in the Aleutian would pay a greater cost recovery fee the RIR/IRFA for the Alaska Department Islands in future years, NMFS would percentage because enforcement and of Fish and Game (ADF&G), the Alaska assess the Aleut Corporation a cost observer program costs are greater for Fisheries Science Center (AFSC), or the recovery fee for the directed Aleutian that sector, relative to the others. North Pacific Fishery Management Islands pollock fishery. Additional detail on the costs associated Council. NMFS notes that a directed If the same fee percentage were with each of the AFA sectors is fishery for Aleutian Islands pollock has applied to all AFA sectors, the fee provided in section 1.8.6 of the RIR/ not occurred since the implementation would have ranged from a high of 0.58 IRFA.

TABLE 6—SUMMARY OF AFA AND ALEUTIAN ISLANDS POLLOCK PROGRAM ESTIMATED COSTS, EX-VESSEL VALUE, AND FEE PERCENTAGE BY YEAR AND BY SECTOR

Cost incurred for each AFA sector Entity incurring costs C/P MS Inshore Total

Costs (estimated for all years)

NMFS Alaska Region ...... $97,832 $47,518 $179,452 $324,802 NMFS OLE ...... 246,460 49,292 197,168 492,920 Observer Program ...... 239,096 53,911 96,454 389,461

Total (Millions) ...... 0.58 0.15 0.47 1.21 Year AFA Sector 2010 2011 2012 2013

Ex-vessel Value per year ($ Millions)

C/P ...... $83 $141 $168 $155 MS ...... 21 35 42 39 Inshore ...... 104 176 208 194 Year AFA sector 2010 2011 2012 2013

Estimated Fee Percentage (Percent of Ex-vessel Value)

C/P ...... 0.70% 0.41 0.35 0.38 MS ...... 0.72% 0.43 0.36 0.39 Inshore ...... 0.45% 0.27 0.23 0.24

In each year considered in Table 6, less than 0.75 percent of the ex-vessel AFA program costs would need to the fee percentage for each sector was value of the fishery. This means that increase by a minimum of 400 percent,

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or program revenue would need to fall by December 1 of the year in which the Cooperative. No Amendment 80 quota by the same percentage in order for the landings were made. The fee must be shareholders have elected to participate fee percentage to reach the maximum submitted electronically to NMFS by in the limited access fishery. fee limit of three percent of ex-vessel December 31 of the calendar year in NMFS proposes adding regulations at value. Therefore, the fee percentage that which the landings were made. § 679.91(b)(4)(vii) that would require would be implemented for this program B. Amendment 80 Cost Recovery Fee that Amendment 80 cooperative is expected to be small. Program agreements list the obligations of Amendment 80 cooperative members to 4. Calculation of Standard Price 1. Amendment 80 Cost Recovery Fee Information ensure full payment of cost recovery Program Applicable Entities fees among their members. This BSAI ex-vessel pollock prices will be NMFS issues the CQ permit to an proposed regulation does not proscribe derived from the COAR. The rationale Amendment 80 cooperative based on an the specific provisions that Amendment for using the COAR has been described annual CQ permit application submitted 80 cooperatives may choose to ensure earlier in this preamble. Pollock by each Amendment 80 cooperative. full payment of cost recovery fees standard prices would be the average The Amendment 80 CQ permit among their members, but it does ex-vessel price for the year. The average application specifies the cooperative’s require that those provisions are listed ex-vessel price, calculated using the designated representative. The in the cooperative agreement. This inshore sectors’ COAR data, would be Amendment 80 cooperative’s designated requirement is intended to encourage used to determine the annual standard representative would be responsible for and facilitate coordination among price for all AFA, Aleutian Islands, and submitting the cost recovery fee for the Amendment 80 cooperative members CDQ pollock landings. The assessment cooperative under this proposed action. for the timely and complete payment of of fees for pollock harvested by CDQ Amendment 80 quota shareholders who fees. As noted earlier in this preamble, Groups is described in the ‘‘CDQ Cost do not choose to join an Amendment 80 NMFS implemented a similar Recovery Fee Program’’ section of this cooperative may participate in the requirement in the Rockfish Program, preamble. The inshore price would be Amendment 80 limited access fishery. and is proposing similar provisions for used as a standard price for all BSAI The Amendment 80 limited access the AFA and Amendment 80 pollock landings because it provides an fishery does not meet the definition of cooperatives. ex-vessel price based on the sale of a limited access privilege program, and Table 7 summarizes the information pollock, rather than imputing an ex- participants in that fishery would not be used to determine standard prices, any vessel price from wholesale value to subject to a cost recovery fee. Since additional reporting requirement, estimate a standard price. 2011, all 27 catcher/processors calculation of the standard ex-vessel Once the standard price has been participating in the Amendment 80 value, the person responsible for calculated, NMFS would determine the Program are members of one of two submitting the fee payment, and fee percentages and announce the cooperatives—the Alaska Seafood submittal requirements and deadlines percentage in a Federal Register notice Cooperative or the Alaska Groundfish for each Amendment 80 cooperative.

TABLE 7—SUMMARY OF THE AMENDMENT 80 COST RECOVERY FEE PROGRAM ELEMENTS

What species are subject to a cost recovery fee? Amendment 80 species: (BSAI Atka Mackerel, BSAI flathead sole, BSAI Pacific cod, Aleutian Islands Pacific ocean perch, BSAI rock sole, and BSAI yellowfin sole). How is the standard price determined? NMFS would calculate a standard price for BSAI Pacific cod based on data from the Pa- cific Cod Volume and Value Report. The standard price would be applied to all landings during a calendar year. NMFS would calculate a standard price for all other species other than BSAI Pacific cod from the First Wholesale Volume and Value Report. The standard price would be applied to all landings during a calendar year, except for BSAI rock sole. NMFS would calculate one standard price for landings made from January 1 through March 31, and a separate standard price for landings made from April 1 through December 31 of each year. Are there additional reporting requirements to deter- Yes. Each Amendment 80 vessel owner that lands Amendment 80 species during a cal- mine the standard price? endar year is required to submit a First Wholesale Volume and Value Report. How will NMFS determine the Standard Ex-vessel NMFS will add total reported landings of Amendment 80 species from January 1 through Value? November 30, estimate total landings from December 1 through December 31, if any, for each cooperative and multiply that amount by the standard price determined by the applicable volume and value report. Who is responsible for fee payment and (how many The Amendment 80 Cooperative’s designated representative listed on the Cooperative cooperatives are estimated to receive a fee liability Quota (CQ) application (2). notice)? When are the standard prices published in the Fed- The standard prices are published in the Federal Register by December 1 of each cal- eral Register, and when are fee liability notices endar year, and the fee liability notices will be sent to each designated representative sent? by December 1 of each calendar year. When are fee liability payments due and how are Fee liability notices are due by December 31 of each year, and must be submitted on- they submitted? line. Submittal forms are available online at: http://www.alaskafisheries.noaa.gov.

2. Cost, Values, and Fee Percentage to the Amendment 80 Program, and approximately $1.36 million per year. Table 8 provides an estimate of the estimates of the cost recovery fee Recoverable fees are estimated based on management costs subject to the cost percentages from 2010 through 2013. management costs incurred by several recovery program, gross ex-vessel Total management costs subject to a cost divisions within the Alaska Region of revenue from fishery species allocated recovery fee were estimated to be NMFS, NMFS OLE, AFSC, and the

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Observer Program. Section 1.8.4 of the associated with the Amendment 80 RIR/IRFA provides additional detail Program. about the estimated management costs

TABLE 8—SUMMARY OF AMENDMENT 80 PROGRAM ESTIMATED COSTS, GROSS EX-VESSEL REVENUE, AND FEE PERCENTAGE

Entity incurring costs Cost incurred

Costs (estimated for all years)

NMFS Alaska Region ...... $486,364 NMFS OLE ...... 492,920 Alaska Fisheries Science Center ...... 49,627 Observer Program ...... 333,548

Total ($ Millions) ...... 1.36 Year Entity 2010 2011 2012 2013

Ex-Vessel Value per year ($ Millions)

Amendment 80 Cooperatives ...... $89 $112 $98 $84 Year Entity 2010 2011 2012 2013

Estimated Fee Percentage (Percent of Ex-Vessel Value)

Amendment 80 Cooperatives...... 1.54% 1.22% 1.49% 1.62%

Based on the estimated gross ex-vessel As noted earlier in this preamble, two preamble. NMFS annually publishes the revenue from the fishery species subject standard prices will be estimated for allocations of groundfish and halibut to a cost recovery fee under the rock sole, one for the first quarter (from TACs to each CDQ group on the Alaska Amendment 80 Program, vessels in the January 1 through March 31), and one Region Web site at http:// Amendment 80 Program generated for the remainder of the year (April 1 www.alaskafisheries.noaa.gov/cdq/ between $84 million and $112 million through December 31). Standard prices current_historical.htm. The information of ex-vessel value per year during the and the cost recovery fee percentage in this publication would represent the period analyzed. Relative to the will be reported in a Federal Register permit that provides an exclusive estimated recoverable costs, these ex- notice by December 1 and the fee harvest privilege to the CDQ group to vessel values result in a cost recovery liability payment will be due on harvest its allocation of groundfish and fee ranging from 1.22 percent to 1.62 December 31st. This billing cycle halibut TACs. Each CDQ group would percent, depending on the year, to enables NMFS to base the cost recovery be responsible for submitting to NMFS generate $1.36 million to cover fee liability on that year’s ex-vessel the cost recovery fee associated with reimbursable management costs. In each revenue to the extent possible (January landings made from its allocation of year considered in Table 8, the cost 1 through October 31), while allowing groundfish and halibut TACs. This recovery fee was estimated to be less NMFS to collect the cost recovery fees method is consistent with the method than 1.7 percent of the estimated ex- prior to issuing a CQ permit to NMFS uses to collect fees for crab CDQ vessel value landed by the Amendment Amendment 80 cooperatives for the in the Crab Rationalization cost recovery 80 cooperatives. Based on these upcoming fishing year that begins in fee program (see § 680.44). percentages, the cost of managing the January. In developing this proposed action, Amendment 80 Program would need to NMFS considered defining the double, or revenue would need to C. CDQ Cost Recovery Fee Program Administrative Panel authorized in decrease by half before the maximum 1. CDQ Cost Recovery Fee Program section 305(i)(1)(G) as the person subject fee of three percent of ex-vessel value Applicable Entities to cost recovery fees for CDQ groundfish would be reached. Therefore, the fee and halibut fisheries. Under this option, percentage that would be implemented This proposed rule defines each CDQ NMFS would submit a single cost for this program is expected to be small. group as the person subject to cost recovery fee liability notice for all CDQ recovery fees for CDQ groundfish and Program cost recovery fees to WACDA, 3. Calculation of Standard Price halibut fisheries. The designated the entity currently serving as the Information representative of a CDQ group is the Administrative Panel for the CDQ To generate timely standard prices individual responsible for remitting Program. NMFS did not select this NMFS would collect first wholesale payment for their CDQ group (see Table approach because it would not be data on round (unprocessed) pounds 9 of this preamble). consistent with the current management and value from the First Wholesale NMFS annually allocates a portion of structure of the CDQ groundfish and Volume and Value Report. Annual groundfish and halibut TACs to the halibut fisheries. As described earlier in standard prices will be used for all CDQ groups as described above in the the ‘‘CDQ Program’’ section of this Amendment 80 species except rock sole. ‘‘CDQ Program’’ section of this preamble and in section 1.5.2.1 of the

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RIR/IRFA, existing CDQ groundfish and for the CDQ Program. These potentially have its CDQ withheld if halibut catch monitoring and reporting representatives noted that combining another CDQ group fails to submit a requirements are structured to ensure responsibility for all CDQ Program cost timely and complete fee payment. that each CDQ group actively monitors recovery fee liabilities could Table 9 summarizes the information the harvest of its allocations, and that disadvantage some CDQ groups if one or used to determine standard prices, any each group takes action to constrain its more groups do not submit their fee by additional reporting requirement, fishing activities should its harvest the deadline and NMFS withheld approach or reach a particular groundfish or halibut allocations to the calculation of the standard ex-vessel allocation. Furthermore, CDQ group CDQ Program in the next year. Making value, the person responsible for representatives did not support each CDQ group responsible for its own submitting the fee payment, and combining cost recovery fees for all fees eliminates the potential for a CDQ submittal requirements and deadlines CDQ groups into one fee liability notice group to be held accountable and for each CDQ group.

TABLE 9—SUMMARY OF THE CDQ COST RECOVERY FEE PROGRAM ELEMENT

What species are subject to a cost recovery fee? Groundfish species allocated to the CDQ Program: (BSAI Atka Mackerel, BSAI flathead sole, Bering Sea Greenland turbot, BSAI Pacific cod, Aleutian Islands Pacific ocean perch, BSAI Pollock, BSAI rock sole, BSAI sablefish, and BSAI yellowfin sole), and BSAI halibut. How is the standard price determined? NMFS would calculate a standard price for BSAI Pacific cod based on data from the Pa- cific Cod Volume and Value Report. The standard price would be applied to all landings during a calendar year. NMFS would calculate a standard price for all other species other than BSAI pollock, BSAI Pacific cod, BSAI sablefish, and BSAI Halibut from the First Wholesale Volume and Value Report. The standard price would be applied to all landings during a calendar year, except for BSAI rock sole. NMFS would calculate one standard price for landings made from January 1 through March 31, and a separate standard price for landings made from April 1 through December 31 of each year. NMFS would calculate a standard price for BSAI pollock based on data from the COAR from the previous calendar year. The standard price would be applied to all landings during a calendar year. NMFS would calculate a standard price for BSAI sablefish and BSAI halibut from the IFQ Buyer Report. The standard price would be applied to all landings during a calendar year. Are there additional reporting requirements from CDQ No. groups to determine the standard price? How will NMFS determine the Standard Ex-vessel NMFS will add total reported landings of the above mentioned species from January 1 Value? through November 30, estimate total landings from December 1 through December 31, if any, for each cooperative and multiply that amount by the standard price determined by the Volume and Value reports. Who is responsible for fee payment and (how many The CDQ group’s designated representative (6). cooperatives are estimated to receive a fee liability notice)? When are the standard prices published in the Fed- The standard prices are published in the Federal Register by December 1 of each cal- eral Register and when are the fee liability notices endar year, and the fee liability notices will be sent to each designated representative sent? by December 1 of each calendar year. When are fee liability payments due and how are Fee liability notices are due by December 31 of each year, and must be submitted on- they submitted? line. Submittal forms are available online at: http://www.alaskafisheries.noaa.gov.

2. Cost, Values, and Fee Percentage revenue from species allocated to the systems (e.g., e-Landings catch and CDQ Program, and estimates of the cost production reporting system), and NMFS, NMFS OLE, the Observer recovery fee percentages from 2010 stationing observers on vessels. Section Program, and ADF&G all contribute to through 2013. Fees were estimated to be 1.8.4 of the RIR/IRFA provides the management of the CDQ Program. about $0.63 million per year, at current additional detail about the estimated Table 10 provides a summary of the levels. These fees included the costs of management costs associated with the management costs subject to the cost developing reports on halibut landings, Amendment 80 Program. recovery fee program, gross ex-vessel providing support for information

TABLE 10—SUMMARY OF CDQ GROUNDFISH AND HALIBUT ESTIMATED COSTS, GROSS EX-VESSEL REVENUE, AND FEE PERCENTAGE

Entity incurring costs Cost incurred

Costs (estimated for all years)

NMFS Alaska Region ...... $234,796 NMFS OLE ...... 246,460 ADF&G ...... 65,612 Observer Program ...... 84,799

Total ($ Millions) ...... 0.63

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Year Entity 2010 2011 2012 2013

Ex-vessel Value per year ($ Millions)

CDQ Groups ...... $47 $74 $87 $76 Year Entity 2010 2011 2012 2013

Estimated Fee Percentage (Percent of Ex-vessel Value)

CDQ Groups...... 1.33% 0.86% 0.73% 0.83%

The CDQ Program fee percentage was this proposed rule is consistent with the groups is organized as an independently estimated to range from 0.73 percent to FMP, other provisions of the Magnuson- owned and operated not-for-profit entity 1.33 percent per year from 2010 through Stevens Act, and other applicable law, and none is dominant in its field; 2013. The estimated fee percentage for subject to further consideration after consequently, each is a ‘‘small entity’’ 2013 was less than 1.0 percent of the public comment. This proposed rule has under the Small Business gross ex-vessel value of species directly been determined to be not significant for Administration’s definition for ‘‘small allocated to the CDQ Program. In each purposes of Executive Order 12866. organization’’. Section 2.6 of the IRFA year, considered in Table 10, the fee prepared for this proposed rule provides A. Initial Regulatory Flexibility Analysis percentage was less than 1.4 percent. more information on these entities. Based on these percentages, the cost of An IRFA was prepared, as required by In addition, this action would regulate managing the CDQ Program would need section 603 of the Regulatory Flexibility Amendment 80 and AFA cooperatives, to double, or revenue would need to Act. The IRFA describes the economic and the vessels that are harvesting decrease by half before the maximum impact this proposed rule, if adopted, exclusive harvest privileges under the fee of three percent of ex-vessel value would have on small entities. Copies of Amendment 80 and AFA programs; The would be reached. Therefore, the fee the RIR/IRFA prepared for this proposed Aleut Corporation; and processors and percentage that would be implemented rule are available from NMFS (see motherships that receive CDQ Pacific for this program is expected to be small. ADDRESSES). cod deliveries and trawl-caught Pacific The IRFA for this proposed action cod. The Small Business Administration 3. Calculation of Standard Price describes the action, why this action is Information defines a small commercial finfish being proposed, the objectives and legal fishing entity as one that has annual NMFS would calculate cost recovery basis for the proposed rule, the type and gross receipts, from all activities of all fees for CDQ halibut and fixed gear number of small entities to which the affiliates, of less than $20.5 million (79 sablefish based on the standard prices proposed rule would apply, and the FR 33647, July 14, 2014). None of these calculated and reported by NMFS for projected reporting, recordkeeping, and entities are considered to be small the Halibut and Sablefish IFQ Program other compliance requirements of the entities based on the SBA’s size cost recovery fee. NMFS would use the proposed rule. It also identifies any standard. IFQ Buyer Report to determine standard overlapping, duplicative, or conflicting prices for CDQ halibut and sablefish. Federal rules and describes any B. Description of Significant NMFS determined that IFQ standard significant alternatives to the proposed Alternatives Considered prices would be appropriate for CDQ rule that would accomplish the stated halibut and sablefish because buyers of objectives of the Magnuson-Stevens Act The Magnuson-Stevens Act requires CDQ halibut and sablefish are required and other applicable statues and that that those participating in limited access by § 679.5(l)(7)(i) to submit the IFQ would minimize any significant adverse privilege programs and the CDQ Buyer Report. Therefore, price data for economic impact of the proposed rule Program pay up to three percent of the CDQ halibut and sablefish are already on small entities. The description of the ex-vessel value of the fish they are reported. The standard prices for proposed action, its purpose, and its allocated to cover specific costs that are pollock allocations harvested by CDQ legal basis are described in the preamble incurred by the management agencies as groups would be derived from the and are not repeated here. a direct result of implementing the COAR data. The standard prices for This proposed rule would directly programs. Given the specific Pacific cod allocations harvested by regulate six CDQ groups that support requirements of the Magnuson-Stevens CDQ groups would be derived from the and manage the activities of the CDQ Act to implement a cost recovery fee, no Pacific Cod Ex-vessel Volume and Value communities. The groups include the other alternatives would accomplish the Report. The standard prices for the Aleutian Pribilof Island Community stated objective. remaining CDQ groundfish species, Development Association, the Bristol NMFS considered and analyzed a other than Pacific cod, pollock, halibut, Bay Economic Development range of specific options to determine and fixed gear sablefish, would be Corporation, the Central Bering Sea standard prices for calculating standard derived from the First Wholesale Fishermen’s Association, the Coastal ex-vessel value data, due dates for Volume and Value Report. Villages Region Fund, the Norton Sound volume and value reports, and fee Economic Development Corporation, submission, as described in the IRFA. V. Classification and the Yukon Delta Fisheries NMFS selected those options that would Pursuant to section 305(d) of the Development Association. These groups minimize reporting burden and costs on Magnuson-Stevens Act, the NMFS represent 65 villages and maintain a small entities consistent with the stated Assistant Administrator has determined non-profit status. Each of the CDQ objective when possible.

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For the options to determine standard hook-and-line catcher/processor sector, performance of the functions of the prices for calculating standard ex-vessel and the FLCC is not considered a agency, including whether the value data, NMFS considered options to limited access privilege program for information shall have practical utility; use COAR data to determine standard purposes of this proposed action. NMFS the accuracy of the burden estimate; prices and standard ex-vessel values for will continue to review the status of the ways to enhance the quality, utility, and all species subject to cost recovery, but FLCC, and would implement a cost clarity of the information to be did not select that option for species recovery fee program for the FLCC in collected; and ways to minimize the other than BSAI pollock because COAR the future, if applicable. burden of the collection of information, data is not an accurate data source for including through the use of automated species where the price changes on a D. Collection-of-Information collection techniques or other forms of year-by-year basis. NMFS did select Requirements information technology. Send comments options that minimized reporting This proposed rule contains on these or any other aspects of the requirements on small entities by using collection-of-information requirements collection of information to NMFS at the existing data sources (e.g., COAR for subject to review and approval by OMB ADDRESSES above and email to OIRA_ BSAI pollock, and the IFQ buyer report under the Paperwork Reduction Act [email protected], or fax to for BSAI sablefish and BSAI halibut). (PRA). NMFS has submitted these (202) 395–5806. For the provision setting the deadline requirements to OMB for approval. The Notwithstanding any other provision date for two new reports that would be requirements are listed below by OMB of the law, no person is required to required under this proposed rule: The collection number. respond to, nor shall any person be Pacific Cod Ex-Vessel Volume and subject to a penalty for failure to comply Value Report and the First Wholesale OMB Control No. 0648–0318 with, a collection of information subject Volume and Value Report, NMFS With this action, the observer fee to the requirements of the PRA, unless considered December 1 for the due date submittal (15 minutes) is removed from that collection of information displays a for volume and value reports, as well as this collection and added to the new fee currently valid OMB Control Number. whether or not the volume and value collection. All currently approved NOAA reports should aggregate all prices for collections of information may be OMB Control No. 0648–0398 the year. NMFS selected November 1 for viewed at: http://www.cio.noaa.gov/ the submission of reports, because it With this action, this IFQ Cost services_programs/prasubs.html. provided the most current data available Recovery collection is removed and while still allowing fee liabilities to be superseded by the new cost recovery List of Subjects in 50 CFR Part 679 calculated on a timely basis so they collection. Alaska, Cost recovery, Fisheries, could be sent out by December 1. For Reporting and recordkeeping the fee submission deadline, NMFS OMB Control No. 0648–0401 requirements. considered selecting an earlier Public reporting burden per response Dated: December 29, 2014. (November 30) and later fee submission is estimated to average four hours for Eileen Sobeck, due date (January 15), but ultimately Cooperative Contract. Assistant Administrator for Fisheries, selected December 31 to ensure all fees OMB Contract No. 0648–0545 National Marine Fisheries Service. for all landings are included for each year. These dates would also minimize With this action, the Rockfish volume For the reasons set out in the the potential impact on small entities and value form (two hours) is removed preamble, 50 CFR part 679 is proposed relative to other dates considered. from this collection. to be amended as follows: C. Additional Provisions Considered OMB Control No. 0648–0565 PART 679—FISHERIES OF THE NMFS also considered implementing Public reporting burden per response EXCLUSIVE ECONOMIC ZONE OFF a cost recovery fee for the Freezer is estimated to average two hours for ALASKA Longline Coalition Cooperative (FLCC). Application for Amendment 80 ■ 1. The authority citation for 50 CFR NMFS considered this alternative Cooperative Quota. because initial analysis indicated that part 679 continues to read as follows: the FLCC exclusively harvested the OMB Control No. 0648–0570 Authority: 16 U.S.C. 773 et seq.; 1801 et allocation assigned to the hook-and-line With this action, the Crab seq.; 3631 et seq.; Pub. L. 108–447; Pub. L. catcher/processor sector (79 FR 12108, Rationalization Program Cost Recovery 111–281. March 4, 2014). However, vessels that collection is removed and superseded ■ 2. In § 679.2, add definitions for ‘‘AFA are not part of the FLCC harvest a by the new cost recovery collection. equivalent pounds’’; ‘‘AFA fee portion of the allocation assigned to liability’’; ‘‘AFA fee percentage’’; ‘‘AFA hook-and-line catcher/processor sector. OMB Control No. 0648–New standard ex-vessel value’’; ‘‘AFA A limited number of vessels harvest Public reporting burden per response standard price’’; ‘‘Aleutian Islands Pacific cod as hook-and-line catcher/ is estimated to average one minute for pollock equivalent pounds’’; ‘‘Aleutian processors within State waters and are cost recovery fee or observer fee Islands pollock fee liability’’; ‘‘Aleutian not required to use an FFP or License submission; five minutes for value and Islands pollock fee percentage’’; Limitation Program license. These State volume report; four hours for appeals. ‘‘Aleutian Islands pollock standard ex- water harvests are deducted from the Estimates for public reporting burden vessel value’’; ‘‘Aleutian Islands pollock proportion of the BSAI Pacific cod TAC include the time for reviewing standard price’’; ‘‘Amendment 80 assigned to the hook-and-line catcher/ instructions, searching existing data equivalent pounds’’; ‘‘Amendment 80 processor sector. The harvest by these sources, gathering and maintaining the fee liability’’; ‘‘Amendment 80 fee vessels is deducted from the Federal data needed, and completing and percentage’’; ‘‘Amendment 80 standard TAC and is not subject to limitation by reviewing the collection of information. ex-vessel value’’; ‘‘Amendment 80 NMFS. Therefore, the FLCC does not Public comment is sought regarding: standard price’’; ‘‘CDQ equivalent have an exclusive harvest privilege for Whether these proposed collections of pounds’’; ‘‘CDQ fee liability’’; ‘‘CDQ fee a proportion of the TAC assigned to information are necessary for the proper percentage’’; ‘‘CDQ standard ex-vessel

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value’’; and ‘‘CDQ standard price’’; in Aleutian Islands pollock standard landed CDQ groundfish and halibut alphabetical order to read as follows: price means the price for landed equivalent pounds by the appropriate Aleutian Islands pollock as determined CDQ standard price determined by the § 679.2 Definitions. by the Regional Administrator and is Regional Administrator. * * * * * expressed in U.S. dollars for an Aleutian CDQ standard price means the price AFA equivalent pounds means the Islands pollock equivalent pound. for landed CDQ groundfish and halibut weight recorded in pounds, for landed * * * * * as determined by the Regional AFA pollock and calculated as round Amendment 80 equivalent pounds Administrator and is expressed in U.S. weight. means the weight recorded in pounds, dollars for a CDQ equivalent pound. AFA fee liability means the amount of for landed Amendment 80 species CQ * * * * * money for Bering Sea pollock cost and calculated as round weight. ■ 3. In § 679.5, add paragraph (u) to read recovery, in U.S. dollars, owed to NMFS Amendment 80 fee liability means the as follows: by an AFA cooperative as determined amount of money for Amendment 80 by multiplying the appropriate AFA cost recovery, in U.S. dollars, owed to § 679.5 Recordkeeping and reporting (R&R). standard ex-vessel value of a NMFS by an Amendment 80 CQ permit cooperative’s landed Bering Sea pollock holder as determined by multiplying the * * * * * by the appropriate AFA fee percentage. appropriate standard ex-vessel value of (u) BSAI Cost Recovery Volume and AFA fee percentage means that landed Amendment 80 species CQ by Value Reports—(1) Pacific Cod Ex- positive number no greater than 3 the appropriate Amendment 80 fee vessel Volume and Value Report—(i) percent (0.03) determined by the percentage. Applicability. A shoreside processor Regional Administrator and established Amendment 80 fee percentage means designated on an FPP, or a mothership, for use in calculating the AFA fee that positive number no greater than 3 designated on an FFP, that processes liability for a cooperative. percent (0.03) determined by the landings of either CDQ Pacific cod or * * * * * Regional Administrator and established BSAI Pacific cod harvested by a vessel AFA standard ex-vessel value means for use in calculating the Amendment using trawl gear must submit annually the total U.S. dollar amount of landed 80 fee liability for an Amendment 80 CQ to NMFS a complete Pacific Cod Ex- Bering Sea pollock as calculated by permit holder. vessel Volume and Value Report, as described in this paragraph (u)(1), for multiplying the number of landed * * * * * each reporting period for which the pounds of Bering Sea pollock by the Amendment 80 standard ex-vessel shorebased processor or mothership appropriate AFA standard price value means the total U.S. dollar receives this Pacific cod. determined by the Regional amount of landed Amendment 80 (ii) Reporting period. The reporting Administrator. species CQ as calculated by multiplying period of the Pacific Cod Ex-vessel AFA standard price means the price the number of landed Amendment 80 Volume and Value Report shall extend for landed Bering Sea pollock as species CQ equivalent pounds by the from January 1 to October 31 of the year determined by the Regional appropriate Amendment 80 standard Administrator and is expressed in U.S. in which the landings were made. price determined by the Regional (iii) Due date. A complete Pacific Cod dollars for an AFA pollock equivalent Administrator. Ex-vessel Volume and Value Report pound. Amendment 80 standard price means must be received by NMFS no later than the price for landed Amendment 80 * * * * * November 10 of the year in which the species as determined by the Regional Aleutian Islands pollock equivalent processor or mothership received the Administrator and is expressed in U.S. pounds means the weight recorded in Pacific cod. pounds, for landed Aleutian Islands dollars for an Amendment 80 equivalent (iv) Information required. (A) The pollock and calculated as round weight. pound. submitter must log in using his or her Aleutian Islands pollock fee liability * * * * * password and NMFS person ID to means the amount of money for CDQ equivalent pounds means the submit a Pacific Cod Ex-vessel Volume Aleutian Islands directed pollock cost weight recorded in pounds, for landed and Value Report. The User must review recovery, in U.S. dollars, owed to NMFS CDQ groundfish and halibut, and any auto-filled cells to ensure that they by the Aleut Corporation as determined calculated as round weight. are accurate. A completed report must by multiplying the appropriate standard CDQ fee liability means the amount of have all applicable fields accurately ex-vessel value of its landed Aleutian money for CDQ groundfish and halibut filled-in. Islands pollock by the appropriate cost recovery, in U.S. dollars, owed to (B) Certification. By using the NMFS Aleutian Islands pollock fee percentage. NMFS by a CDQ group as determined by person ID and password and submitting Aleutian Islands pollock fee multiplying the appropriate standard the report, the submitter certifies that all percentage means that positive number ex-vessel value of landed CDQ information is true, correct, and no greater than 3 percent (0.03) groundfish and halibut by the complete to the best of his or her determined by the Regional appropriate CDQ fee percentage. knowledge and belief. Administrator and established for use in CDQ fee percentage means that (v) Submittal. The submitter must calculating the Aleutian Islands pollock positive number no greater than 3 complete and submit online to NMFS fee liability for the Aleut Corporation. percent (0.03) determined by the the Pacific Cod Ex-vessel Volume and Aleutian Islands pollock standard ex- Regional Administrator and established Value Report available at https:// vessel value means the total U.S. dollar for use in calculating the CDQ alaskafisheries.noaa.gov. amount of landed Aleutian Islands groundfish and halibut fee liability for (2) First Wholesale Volume and Value pollock as calculated by multiplying the a CDQ group. Report—(i) Applicability. An number of landed pounds of Aleutian * * * * * Amendment 80 vessel owner that Islands pollock by the appropriate CDQ standard ex-vessel value means harvests Amendment 80 species, other Aleutian Islands pollock standard price the total U.S. dollar amount of landed than Pacific cod, must submit annually determined by the Regional CDQ groundfish and halibut as to NMFS a complete First Wholesale Administrator. calculated by multiplying the number of Volume and Value Report, as described

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in this paragraph (u)(2), for each (k) * * * Web site and a fee liability summary reporting period for which the (9) Fail to submit a timely and letter mailed to the CDQ group Amendment 80 vessel harvests complete AFA cost recovery fee representative. Amendment 80 species, other than submission form and fee as required (iv) Payment method. Payment must Pacific cod. under § 679.66. be made electronically in U.S. dollars by (ii) Reporting period. (A) The (l) * * * automated clearing house, credit card, reporting period of the First Wholesale (6) Fail to submit a timely and or electronic check drawn on a U.S. Volume and Value Report for all species complete Aleutian Islands pollock cost bank account. except rock sole shall extend from recovery fee submission form and fee as (b) CDQ standard ex-vessel value January 1 to October 31 of the year in required under § 679.67. determination and use—(1) General. A which the landings were made. * * * * * CDQ group representative must use the (B) The first reporting period of the (o) * * * CDQ standard prices determined by First Wholesale Volume and Value (4) * * * NMFS under paragraph (b)(2) of this Report for rock sole shall extend from (vii) Fail to submit a timely and section. January 1 to March 31, and the second complete Amendment 80 cost recovery (2) CDQ standard prices—(i) General. reporting period shall extend from April fee submission form and fee as required Each year the Regional Administrator 1 to October 31. under § 679.95. will publish CDQ standard prices for (iii) Due date. A complete First * * * * * groundfish and halibut in the Federal Wholesale Volume and Value Report (9) First Wholesale Volume and Value Register by December 1 of the year in must be received by NMFS no later than Report. For an Amendment 80 vessel which the CDQ groundfish and halibut November 10 of the year in which the owner to fail to submit a timely and landings were made. The CDQ standard Amendment 80 vessel received the complete First Wholesale Volume and prices will be described in U.S. dollars Amendment 80 species, other than Value Report as required under per equivalent pound for CDQ Pacific cod. groundfish and halibut landings made (iv) Information required. (A) The § 679.5(u)(2). * * * * * during the current calendar year. Amendment 80 vessel owner must log (ii) Effective duration. The CDQ in using his or her password and NMFS ■ 5. Add § 679.33 to Subpart E to read as follows: standard prices published by NMFS person ID to submit a First Wholesale shall apply to all CDQ groundfish and Volume and Value Report. The vessel § 679.33 Cost recovery. halibut landings made during the owner must review any auto-filled cells current calendar year. to ensure that they are accurate. A (a) Cost Recovery Fee Program for CDQ groundfish and halibut—(1) Who (iii) Determination. A CDQ group completed application must contain the representative must use the CDQ information specified on the First is Responsible? The person documented with NMFS as the CDQ group standard prices when determining the Wholesale Volume and Value Report CDQ group’s fee liability based on CDQ with all applicable fields accurately representative at the time of a CDQ landing. standard ex-vessel value. A CDQ group filled in. representative must base all fee liability (B) Certification. By using the NMFS (i) Subsequent transfer, under calculations on the CDQ standard price person ID and password and submitting § 679.31(c), of a CDQ allocation by a that correlates to landed CDQ the report, the Amendment 80 vessel CDQ group does not affect the CDQ groundfish and halibut by gear type that owner certifies that all information is group representative’s liability for is recorded in CDQ equivalent pounds. true, correct, and complete to the best of noncompliance with this section. (A) CDQ halibut and CDQ fixed gear his or her knowledge and belief. (ii) Changes in amount of a CDQ (v) Submittal. The Amendment 80 allocation to a CDQ group do not affect sablefish. NMFS will calculate the CDQ vessel owner must complete and submit the CDQ group representative’s liability standard prices for CDQ halibut and online to NMFS the First Wholesale for noncompliance with this section. CDQ fixed gear sablefish to reflect, as Volume and Value Report available at (2) Fee collection. Each CDQ group closely as possible by port or port- https://alaskafisheries.noaa.gov. that receives a CDQ allocation of group, the variations in the actual ex- ■ 4. In § 679.7, add paragraphs (c)(6), groundfish and halibut is responsible vessel values of CDQ halibut and fixed- (d)(8), (k)(9), (l)(6), (o)(4)(vii), and (o)(9) for submitting the cost recovery gear sablefish based on information to read as follows: payment for all CDQ landings debited provided in the IFQ Registered Buyer against that CDQ group’s allocations. Ex-vessel Volume and Value Report § 679.7 Prohibitions. (3) Payment—(i) Payment due date. A described at § 679.5(l)(7). The Regional * * * * * CDQ group representative must submit Administrator will base CDQ standard (c) * * * all CDQ fee liability payment(s) to prices on the following types of (6) For a shoreside processor NMFS at the address provided in information: designated on an FPP, or a mothership paragraph (a)(3)(iii) of this section no (1) Landed pounds of IFQ halibut and designated on an FFP, that processes later than December 31 of the calendar sablefish and CDQ halibut in the Bering landings of either CDQ Pacific cod or year in which the CDQ groundfish and Sea port-group; BSAI Pacific cod harvested by a vessel halibut landings were made. (2) Total ex-vessel value of IFQ using trawl gear to fail to submit a (ii) Payment recipient. Make halibut and sablefish and CDQ halibut timely and complete Pacific Cod Ex- electronic payment payable to NMFS. in the Bering Sea port-group; and vessel Volume and Value Report as (iii) Payment address. Submit (3) Price adjustments, including required under § 679.5(u)(1). payment and related documents as retroactive payments. (d) * * * instructed on the fee submission form. (B) CDQ Pacific cod. NMFS will use (8) Fail to submit a timely and Payments must be made electronically the standard prices calculated for complete CDQ cost recovery fee through the NMFS Alaska Region Web Pacific cod based on information submission form and fee as required site at http://alaskafisheries.noaa.gov. provided in the Pacific Cod Ex-vessel under § 679.33. Instructions for electronic payment will Volume and Value Report described at * * * * * be made available on both the payment § 679.5(u)(1) for CDQ Pacific cod.

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(C) CDQ pollock. NMFS will use the fee percentage in a Federal Register representative has not paid the CDQ fee standard prices calculated for AFA notice by December 1 of the year in liability due for that CDQ group, the pollock described at § 679.66(b) for CDQ which the CDQ groundfish and halibut Regional Administrator may continue to pollock. landings were made. NMFS shall prohibit issuance of allocations of CDQ (D) Other CDQ groundfish including calculate the CDQ fee percentage based groundfish and halibut for that CDQ sablefish caught with trawl gear. (1) The on the calculations described in group for any subsequent calendar years Regional Administrator will base all paragraph (c)(2) of this section. until NMFS receives the unpaid fees. If CDQ standard prices for all other CDQ (ii) Effective period. The calculated payment is not received by the 30th day groundfish species on the First CDQ fee percentage is applied to CDQ after the final agency action, the agency Wholesale Volume and Value reports groundfish and halibut landings made may pursue collection of the unpaid specified in § 679.5(u)(2). between January 1 and December 31 of fees. (2) The Regional Administrator will the same year. (e) Overpayment. Upon issuance of establish CDQ standard prices for all (4) Applicable percentage. The CDQ final agency action, payment submitted other CDQ groundfish species on an group representative must use the CDQ to NMFS in excess of the CDQ fee annual basis; except the Regional fee percentage applicable at the time a liability determined to be due by the Administrator will establish a CDQ CDQ groundfish and halibut landing is final agency action will be returned to standard price for rock sole for all debited from a CDQ group’s allocation the CDQ group representative unless the landings from January 1 through March to calculate the CDQ fee liability for any CDQ group representative requests the 31, and a second CDQ standard price for retroactive payments for that CDQ agency to credit the excess amount rock sole for all landings from April 1 species. against the CDQ group’s future CDQ fee through December 31. (5) Fee liability determination for a liability. Payment processing fees may (3) The average first wholesale CDQ group. (i) Each CDQ group will be be deducted from any fees returned to product prices reported will be subject to a CDQ fee liability for any the CDQ group representative. multiplied by 0.4 to obtain a proxy for CDQ groundfish and halibut debited (f) Appeals. A CDQ group the ex-vessel prices of those CDQ from that CDQ group’s allocation during representative who receives an IAD for groundfish species. a calendar year. incomplete payment of a CDQ fee (c) CDQ fee percentage—(1) (ii) The CDQ fee liability assessed to liability may appeal under the appeals Established percentage. The CDQ fee a CDQ group will be based on the procedures set out at 15 CFR part 906. percentage for CDQ groundfish and proportion of the standard ex-vessel (g) Administrative Fees. halibut is the amount as determined by value of CDQ groundfish and halibut Administrative fees may be assessed if the factors and methodology described debited from a CDQ group’s allocation the account drawn on to pay the CDQ in paragraph (c)(2) of this section. This relative to all CDQ groups during a fee liability has insufficient funds to amount will be announced by calendar year as determined by NMFS. cover the transaction, or if the account publication in the Federal Register in (iii) NMFS will provide a CDQ fee becomes delinquent. Additionally, accordance with paragraph (c)(3) of this liability summary letter to each CDQ interest will begin to accrue on any section. This amount must not exceed group representative by December 1 of portion of the fee that has not been paid 3.0 percent pursuant to 16 U.S.C. each year. The summary will explain due to insufficient funds. 1854(d)(2)(B). the CDQ fee liability determination (h) Annual report. NMFS will publish (2) Calculating fee percentage value. including the current fee percentage, annually a report describing the status Each year NMFS shall calculate and and details of CDQ pounds debited from of the CDQ Cost Recovery Fee Program publish the CDQ fee percentage the CDQ group allocations by permit, for groundfish and halibut. according to the following factors and species, date, and prices. ■ 6. In § 679.61, methodology: (d) Underpayment of fee liability—(1) ■ a. Revise paragraph (c)(1); and (i) Factors. NMFS will use the No CDQ group will receive its ■ b. Add paragraph (e)(1)(vi) to read as following factors to determine the fee allocations of CDQ groundfish or halibut follows: until the CDQ group representative percentage: § 679.61 Formation and operation of (A) The catch to which the CDQ submits full payment of that CDQ fishery cooperatives. groundfish and halibut cost recovery fee group’s complete CDQ fee liability. will apply; (2) If a CDQ group representative fails * * * * * (B) The ex-vessel value of that catch; to submit full payment for its CDQ fee (c) * * * (1) What is a designated and liability by the date described in representative? Any cooperative formed (C) The costs directly related to the paragraph (a)(3) of this section, the under this section must appoint a management, data collection, and Regional Administrator may: enforcement of the CDQ Program for (i) At any time thereafter send an IAD designated representative to fulfill groundfish and halibut. to the CDQ group representative stating regulatory requirements on behalf of the (ii) Methodology. NMFS will use the that the CDQ group’s estimated fee cooperative including, but not limited following equations to determine the fee liability, as indicated by his or her own to, filing of cooperative contracts, filing percentage: 100 × DPC/V, where: submitted information, is the CDQ fee of annual reports, submitting all cost DPC = the direct program costs for the liability due from the CDQ group. recovery fees, and in the case of inshore CDQ Program for groundfish and halibut (ii) Disapprove any application to sector catcher vessel cooperatives, for the most recent Federal fiscal year transfer CDQ to or from the CDQ group signing cooperative fishing permit (October 1 through September 30) with in accordance with § 679.31(c). applications and completing and any adjustments to the account from (3) If a CDQ group fails to submit full submitting inshore catcher vessel payments received in the previous year. payment by December 31, no allocations pollock cooperative catch reports. The V = total of the CDQ standard ex- of CDQ groundfish and halibut will be designated representative is the primary vessel value of the catch subject to the issued to that CDQ group for the contact person for NMFS on issues CDQ fee liability for the current year. following calendar year. relating to the operation of the (3) Publication—(i) General. NMFS (4) Upon final agency action cooperative. will calculate and announce the CDQ determining that a CDQ group * * * * *

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(e) * * * automated clearing house, credit card, enforcement of the directed AFA (1) * * * or electronic check drawn on a U.S. pollock fisheries. (vi) List the obligations of members of bank account. (ii) Methodology. NMFS will use the a cooperative, governed by § 679.61, to (b) AFA standard ex-vessel value following equations to determine the ensure the full payment of all AFA fee determination and use—(1) General. A AFA fee percentage: 100 × DPC/V, liabilities that may be due. cooperative representative must use the where: * * * * * AFA standard price determined by DPC = the direct program costs for the ■ 7. Add § 679.66 to Subpart F to read NMFS under paragraph (b)(2) of this directed AFA pollock fisheries for the as follows: section. most recent fiscal year (October 1 (2) AFA standard price—(i) General. through September 30) with any § 679.66 AFA cost recovery. Each year the Regional Administrator adjustments to the account from (a) Cost recovery fee program for will publish the AFA standard price in payments received in the previous year. AFA—(1) Who is responsible? (i) The the Federal Register by December 1 of V = total of the standard ex-vessel person designated on the AFA inshore the year in which the landings were value of the catch subject to the AFA fee cooperative permit as the cooperative made. The AFA standard price will be liability for the current year. representative at the time of a Bering described in U.S. dollars per equivalent (iii) Direct program costs will be Sea pollock landing. pound for Bering Sea pollock landings calculated separately for: (ii) The person designated as the made by AFA cooperative members (A) AFA inshore cooperatives; representative of the listed AFA catcher/ during the current calendar year. (B) The cooperative representing the processors and high seas catcher vessels (ii) Effective duration. The AFA listed AFA catcher/processors and high that deliver to them at the time of a standard price published by NMFS shall seas catcher vessels that deliver to them; Bering Sea pollock landing. apply to all Bering Sea pollock landings and (iii) The person designated as the made by an AFA cooperative member (C) The AFA mothership cooperative. representative of the AFA mothership during the current calendar year. (3) Publication—(i) General. NMFS cooperative at the time of a Bering Sea (iii) Determination. NMFS will will calculate and announce the AFA pollock landing. calculate the AFA standard price to fee percentages in a Federal Register (2) Responsibility. (i) Subsequent reflect, as closely as possible, the notice by December 1 of the year in transfer of AFA permits held by standard price of Bering Sea pollock which the Bering Sea pollock landings cooperative members does not affect the landings based on information provided were made. AFA fee percentages will be cooperative representative’s liability for in the COAR for the previous year, as calculated separately for the AFA noncompliance with this section. described in § 679.5(p). The Regional inshore cooperatives, the cooperative for (ii) Changes in the membership in a Administrator will base the AFA listed AFA catcher/processors and high cooperative, such as members joining or standard price on the following types of seas catcher vessels that deliver to them, departing during the relevant year, or information: and the AFA mothership cooperative. changes in the holdings of AFA permits (A) Landed pounds of Bering Sea NMFS shall calculate the AFA fee of those members do not affect the pollock; percentages based on the calculations cooperative representative’s liability for (B) Total ex-vessel value of Bering Sea described in paragraph (c)(2) of this noncompliance with this section. pollock; and section. (3) Fee collection. All cooperative (C) Price adjustments, including (ii) Effective period. The calculated representatives (as identified under retroactive payments. AFA fee percentages are applied to all paragraph (a)(1) of this section) are (c) AFA fee percentages—(1) Bering Sea directed pollock landings responsible for submitting the cost Established percentages. The AFA fee made between January 1 and December recovery payment for all Bering Sea percentages are the amounts as 31 of the current year. pollock landings made under the determined by the factors and (4) Applicable percentage. An AFA authority of their cooperative. methodology described in paragraph cooperative representative must use the (4) Payment—(i) Payment due date. (c)(2) of this section. These amounts AFA fee percentage applicable to that The cooperative representative (as will be announced by publication in the cooperative at the time a Bering Sea identified under paragraph (a)(1) of this Federal Register in accordance with directed pollock landing is debited from section) must submit all AFA fee paragraph (c)(3) of this section. These an AFA pollock fishery allocation to liability payment(s) to NMFS at the amounts must not exceed 3.0 percent calculate the AFA fee liability for any address provided in paragraph (a)(3)(iii) pursuant to 16 U.S.C. 1854(d)(2)(B). retroactive payments for that landing. of this section no later than December (2) Calculating fee percentage value. (5) Fee liability determination. (i) 31 of the calendar year in which the Each year NMFS shall calculate and Each AFA cooperative will be subject to Bering Sea pollock landings were made. publish AFA fee percentages for AFA an AFA fee liability for any Bering Sea (ii) Payment recipient. Make inshore cooperatives, the cooperative pollock debited from its AFA pollock electronic payment payable to NMFS. representing the listed AFA catcher/ fishery allocation during a calendar (iii) Payment address. Submit processors and high seas catcher vessels year. payment and related documents as that deliver to them, and the AFA (ii) The AFA fee liability assessed to instructed on the fee submission form. mothership cooperative according to the an AFA inshore cooperative will be Payments must be made electronically following factors and methodology: based on the proportion of the AFA fee through the NMFS Alaska Region Web (i) Factors. NMFS will use the liability of Bering Sea pollock debited site at http://alaskafisheries.noaa.gov. following factors to determine the fee from that AFA Inshore cooperative’s Instructions for electronic payment will percentages: AFA pollock fishery allocation relative be made available on both the payment (A) The catch to which the AFA to all AFA inshore cooperatives during Web site and a fee liability summary pollock cost recovery fee will apply; a calendar year as determined by NMFS. letter mailed to the AFA cooperative (B) The ex-vessel value of that catch; (iii) The AFA fee liability assessed to member. and the cooperative of listed AFA catcher/ (iv) Payment method. Payment must (C) The costs directly related to the processors and high seas catcher vessels be made electronically in U.S. dollars by management, data collection, and that deliver to them will be based on the

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standard ex-vessel value of Bering Sea will be provided to that AFA section) must submit all cost recovery pollock debited from this cooperative’s cooperative for the following calendar fee liability payment(s) to NMFS at the AFA pollock fishery allocation during a year, except as provided in paragraph address provided in paragraph (a)(3)(iii) calendar year as determined by NMFS. (d)(3) of this section. of this section no later than December (iv) The AFA fee liability assessed to (6) Upon final agency action 31 of the calendar year in which the the AFA mothership cooperative will be determining that an AFA cooperative Aleutian Islands pollock landings were based on the proportion of the standard representative has not paid that made. ex-vessel value of Bering Sea pollock cooperative’s AFA fee liability, the (ii) Payment recipient. Make debited from this cooperative’s AFA Regional Administrator may continue to electronic payment payable to NMFS. pollock fishery allocation during a prohibit issuance of a directed Bering (iii) Payment address. Submit calendar year as determined by NMFS. Sea pollock allocation for that payment and related documents as (v) NMFS will provide a fee liability cooperative for any subsequent calendar instructed on the fee submission form. summary letter to all AFA cooperative years until NMFS receives the unpaid Payments must be made electronically representatives by December 1 of each fees. If payment is not received by the through the NMFS Alaska Region Web year. The summary will explain the 30th day after the final agency action, site at http://alaskafisheries.noaa.gov. AFA fee liability determination the agency may pursue collection of the Instructions for electronic payment will including the current fee percentage and unpaid fees. be made available on both the payment details of Bering Sea pollock pounds (e) Overpayment. Upon issuance of Web site and a fee liability summary debited from the AFA pollock fishery final agency action, payment submitted letter mailed to the designated allocation by permit, species, date, and to NMFS in excess of the AFA fee representative of the Aleut Corporation. prices. liability determined to be due by the (iv) Payment method. Payment must (d) Underpayment of fee liability—(1) final agency action will be returned to be made electronically in U.S. dollars by No AFA inshore cooperative will the AFA cooperative unless the automated clearing house, credit card, receive its AFA allocation until the cooperative representative requests the or electronic check drawn on a U.S. cooperative’s representative submits full agency to credit the excess amount bank account. payment of the cooperative’s AFA fee against the cooperative’s future AFA fee (b) Aleutian Islands pollock standard liability. liability. Payment processing fees may ex-vessel value determination and use— (2) The AFA mothership cooperative be deducted from any fees returned to (1) General. The designated will not receive any Bering Sea pollock the cooperative. representative of the Aleut Corporation allocation until the cooperative (f) Appeals. An AFA cooperative must use the Aleutian Islands pollock representative submits full payment of representative who receives an IAD for standard price determined by NMFS that cooperative’s AFA fee liability. incomplete payment of an AFA fee under paragraph (b)(2) of this section. (3) AFA catcher/processor joint liability may appeal under the appeals (2) Aleutian Islands pollock standard cooperative underpayment (i) The procedures set out at 15 CFR part 906. price—(i) General. Each year the cooperative for listed AFA catcher/ (g) Administrative Fees. Regional Administrator will publish the processors and high seas catcher vessels Administrative fees may be assessed if Aleutian Islands pollock standard price that deliver to them will not receive any the account drawn on to pay the CDQ in the Federal Register by December 1 Bering Sea pollock allocation until the fee liability has insufficient funds to of the year in which the landings were cooperative representative submits full cover the transaction, or if the account made. The Aleutian Islands pollock payment of that cooperative’s AFA fee becomes delinquent. Additionally, standard price will be described in U.S. liability at the time of a Bering Sea interest will begin to accrue on any dollars per equivalent pound for pollock landing, except as provided in portion of the fee that has not been paid Aleutian Islands pollock landings paragraph (d)(3)(ii) of this section. due to insufficient funds. during the current calendar year. (ii) If the cooperative representing the (h) Annual report. NMFS will publish (ii) Effective duration. The Aleutian listed AFA catcher/processors and high annually a report describing the status Islands pollock standard price seas catcher vessels that deliver to them of the AFA Cost Recovery Fee Program. published by NMFS shall apply to all pays only a portion of its AFA fee ■ 8. A new § 679.67 is added to Subpart Aleutian Islands pollock landings liability, the Regional Administrator F to read as follows: during the current calendar year. may release a portion of the (iii) Determination. NMFS will cooperative’s Bering Sea pollock § 679.67 Aleutian Islands pollock cost calculate the Aleutian Islands pollock allocation equal to the portion of the fee recovery. standard price to reflect, as closely as liability paid. (a) Cost recovery fee program for possible, the standard price of Aleutian (4) If an AFA cooperative Aleutian Islands pollock—(1) Islands pollock landings based on representative fails to submit full Representative. The person identified as information provided in the COAR for payment for the AFA fee liability by the the representative, designated by the the previous year, as described in date described in paragraph (a)(4) of this Aleut Corporation, at the time of an § 679.5(p). The Regional Administrator section, the Regional Administrator may Aleutian Islands pollock landing is will base Aleutian Islands pollock at any time thereafter send an IAD to the responsible for submitting all cost standard price on the following types of AFA cooperative representative stating recovery fees. information: that the cooperative’s estimated fee (2) Fee collection. The designated (A) Landed pounds of Aleutian liability, as indicated by his or her own representative (as identified under Islands pollock; submitted information, is the AFA fee paragraph (a)(1) of this section) is (B) Total ex-vessel value of Aleutian liability due from the AFA cooperative responsible for submitting the cost Islands pollock; and representative. recovery payment for all Aleutian (C) Price adjustments, including (5) If an AFA cooperative Islands pollock landings made under retroactive payments. representative fails to submit full the authority of Aleut Corporation. (c) Aleutian Islands pollock fee payment for AFA fee liability by the (3) Payment. (i) Payment due date. percentage—(1) Established percentage. date described at paragraph (a)(4) of this The designated representative (as The Aleutian Islands pollock fee section, no Bering sea pollock allocation identified under paragraph (a)(1) of this percentage is the amount as determined

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by the factors and methodology any retroactive payments for that (e) Overpayment. Upon issuance of described in paragraph (c)(2) of this pollock. final agency action, payment submitted section. This amount will be announced (5) Fee liability determination. (i) The to NMFS in excess of the Aleutian by publication in the Federal Register Aleut Corporation will be subject to a Islands pollock fee liability determined in accordance with paragraph (c)(3) of fee liability for any Aleutian Islands to be due by the final agency action will this section. This amount must not pollock debited from the Aleutian be returned to the Aleut Corporation exceed 3.0 percent pursuant to 16 U.S.C. Islands directed pollock fishery unless its designated representative 1854(d)(2)(B). allocation during a calendar year. requests the agency to credit the excess (2) Calculating fee percentage value. (ii) NMFS will provide a fee liability amount against the cooperative’s future Each year NMFS shall calculate and summary letter to the Aleut Corporation Aleutian Islands pollock fee liability. publish the fee percentage according to by December 1 of each year. The Payment processing fees may be the following factors and methodology: summary will explain the fee liability deducted from any fees returned to the (i) Factors. NMFS will use the determination including the current fee Aleut Corporation. following factors to determine the fee percentage, and details of Aleutian (f) Appeals. A representative of the percentage: Islands pollock pounds debited from the Aleut Corporation who receives an IAD (A) The catch to which the Aleutian Aleutian Islands directed pollock for incomplete payment of an Aleutian Islands pollock cost recovery fee will fishery allocation by permit, species, Islands pollock fee may appeal under apply; date, and prices. the appeals procedures set out at 15 CFR (d) Underpayment of fee liability—(1) (B) The ex-vessel value of that catch; part 906. and The Aleut Corporation will not receive (g) Administrative Fees. (C) The costs directly related to the its Aleutian Islands directed pollock Administrative fees may be assessed if management, data collection, and fishery allocation until the Aleut the account drawn on to pay the CDQ enforcement of the Aleutian Islands Corporation’s designated representative fee liability has insufficient funds to directed pollock fishery. submits full payment of the Aleut (ii) Methodology. NMFS will use the Corporation’s cost recovery fee liability. cover the transaction, or if the account following equations to determine the fee (2) If the Aleut Corporation’s becomes delinquent. Additionally, percentage: 100 × DPC/V, where: designated representative fails to submit interest will begin to accrue on any DPC = the direct program costs for the full payment for Aleutian Islands portion of the fee that has not been paid Aleutian Islands directed pollock pollock fee liability by the date due to insufficient funds. fishery for the most recent fiscal year described in paragraph (a)(3) of this (h) Annual report. NMFS will publish (October 1 through September 30) with section, the Regional Administrator may annually a report describing the status any adjustments to the account from at any time thereafter send an IAD to the of the Aleutian Islands Pollock Cost payments received in the previous year. Aleut Corporation’s designated Recovery Fee Program. V = total of the standard ex-vessel representative stating that the estimated ■ 9. In § 679.91, value of the catch subject to the fee liability, as indicated by his or her ■ a. Revise paragraphs (b)(4)(vii) and Aleutian Islands pollock fee liability for own submitted information, is the (h)(3)(xiv); and the current year. Aleutian Islands pollock fee liability ■ b. Add paragraph (h)(3)(xx) to read as (3) Publication—(i) General. NMFS due from the Aleut Corporation. follows: will calculate and announce the fee (3) If the Aleut Corporation’s percentage in a Federal Register notice designated representative fails to submit § 679.91 Amendment 80 Program annual by December 1 of the year in which the full payment by the Aleutian Islands harvester privileges. Aleutian Islands pollock landings were pollock fee liability payment deadline * * * * * made. NMFS shall calculate the described at paragraph (a)(3) of this (b) * * * Aleutian Islands pollock fee percentage section, no Aleutian Islands directed (4) * * * based on the calculations described in pollock fishery allocation will be issued (vii) Copy of membership agreement paragraph (c)(2) of this section. to the Aleut Corporation for that or contract. Attach a copy of the (ii) Effective period. The calculated calendar year. membership agreement or contract that Aleutian Islands pollock fee percentage (4) Upon final agency action includes terms that list: determining that the Aleut Corporation is applied to all Aleutian Islands (A) How the Amendment 80 has not paid its Aleutian Islands pollock pollock landings made between January cooperative intends to catch its CQ; and 1 and December 31 of the current year. fee liability, the Regional Administrator (4) Applicable percentage. The may continue to prohibit issuance of the (B) The obligations of Amendment 80 designated representative must use the Aleutian Islands directed pollock QS holders who are members of an Aleutian Islands pollock fee percentage fishery allocation for any subsequent Amendment 80 cooperative to ensure applicable at the time an Aleutian calendar years until NMFS receives the the full payment of Amendment 80 fee Islands pollock landing is debited from unpaid fees. If payment is not received liabilities that may be due. the Aleutian Islands directed pollock by the 30th day after the final agency * * * * * fishery allocation to calculate the action, the agency may pursue (h) * * * Aleutian Islands pollock fee liability for collection of the unpaid fees. (3) * * *

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(xiv) Does an Amendment 80 cooperative need a member- Yes, an Amendment 80 cooperative must have a membership agreement or con- ship agreement or contract? tract. A copy of this agreement or contract must be submitted to NMFS with the application for CQ. The membership agreement or contract must specify: (A) How the Amendment 80 cooperative intends to catch its CQ; and (B) The obligations of Amendment 80 QS holders, who are members of an Amendment 80 cooperative, to ensure the full payment of Amendment 80 fee liabilities that may be due. . ******* (xx) Is there a requirement that an Amendment 80 coopera- Yes, see § 679.95 for the provisions that apply. tive pay Amendment 80 cost recovery fees?

* * * * * (b) Amendment 80 standard ex-vessel landings from January 1 through March ■ 10. A new § 679.95 is added to subpart value determination and use—(1) 31, and a second Amendment 80 H to read as follows: General. An Amendment 80 cooperative standard price for rock sole for all representative must use the Amendment landings from April 1 through December § 679.95 Cost recovery. 80 standard prices determined by NMFS 31. (a) Cost recovery fee program for under paragraph (b)(2) of this section. (3) The average first wholesale Amendment 80—(1) Who is (2) Amendment 80 standard prices— product prices reported on the First responsible? The person designated as (i) General. Each year the Regional Wholesale Volume and Value reports, the Amendment 80 cooperative Administrator will publish Amendment specified in § 679.5(u)(2), will be representative at the time of an 80 standard prices in the Federal multiplied by 0.4 to obtain a proxy for Amendment 80 CQ landing must Register by December 1 of the year in the ex-vessel prices of Amendment 80 comply with the requirements of this which the Amendment 80 species species other than Pacific cod. section, notwithstanding: landings were made. The standard (c) Amendment 80 fee percentage—(1) (i) Subsequent transfer of Amendment prices will be described in U.S. dollars Established percentage. The 80 CQ or Amendment 80 QS held by per equivalent pound for Amendment Amendment 80 fee percentage is the Amendment 80 cooperative members; amount as determined by the factors (ii) Non-renewal of an Amendment 80 80 species landings made by CQ permit; or Amendment 80 CQ permit holders and methodology described in (iii) Changes in the membership in an during the current calendar year. paragraph (c)(2) of this section. This Amendment 80 cooperative, such as (ii) Effective duration. The amount will be announced by members joining or departing during the Amendment 80 standard prices publication in the Federal Register in relevant year, or changes in the amount published by NMFS shall apply to all accordance with paragraph (c)(3) of this of Amendment 80 QS holdings of those Amendment 80 species landings made section. This amount must not exceed members. by an Amendment 80 CQ permit holder 3.0 percent pursuant to 16 U.S.C. (2) Fee collection. Amendment 80 during that calendar year. 1854(d)(2)(B). cooperative representatives are (iii) Determination. An Amendment (2) Calculating fee percentage value. responsible for submitting the cost 80 cooperative representative must use Each year NMFS shall calculate and recovery payment for Amendment 80 the Amendment 80 standard prices publish the fee percentage according to CQ landings made under the authority when determining the Amendment 80 the following factors and methodology: of their Amendment 80 CQ permit. fee liability based on Amendment 80 (i) Factors. NMFS will use the (3) Payment—(i) Payment due date. standard ex-vessel value. An following factors to determine the fee An Amendment 80 cooperative Amendment 80 cooperative percentage: representative must submit all representative must base all fee liability (A) The catch to which the Amendment 80 fee liability payment(s) calculations on the Amendment 80 Amendment 80 cost recovery fee will to NMFS at the address provided in standard price that correlates to landed apply; paragraph (a)(3)(iii) of this section no Amendment 80 species by gear type that (B) The ex-vessel value of that catch; later than December 31 of the calendar is recorded in Amendment 80 and year in which the Amendment 80 CQ equivalent pounds. (C) The costs directly related to the landings were made. (A) Pacific cod. NMFS will use the management, data collection, and (ii) Payment recipient. Make standard prices calculated for Pacific enforcement of the Amendment 80 electronic payment payable to NMFS. cod based on information provided in Program. (iii) Payment address. Submit the Pacific Cod Ex-vessel Volume and (ii) Methodology. NMFS will use the payment and related documents as Value Report described at § 679.5(u)(1). following equations to determine the fee instructed on the fee submission form. (B) Amendment 80 species other than percentage: 100 × DPC/V, where: Payments must be made electronically Pacific cod. (1) The Regional DPC = direct program costs for the through the NMFS Alaska Region Web Administrator will base Amendment 80 Amendment 80 Program for the most site at http://alaskafisheries.noaa.gov. standard prices for all Amendment 80 recent fiscal year (October 1 through Instructions for electronic payment will species other than Pacific cod on the September 30) with any adjustments to be made available on both the payment First Wholesale Volume and Value the account from payments received in Web site and a fee liability summary reports specified in § 679.5(u)(2). the previous year. letter mailed to the Amendment 80 CQ (2) The Regional Administrator will V = total of the standard ex-vessel permit holder. establish Amendment 80 standard value of the landings subject to the (iv) Payment method. Payment must prices for all Amendment 80 species Amendment 80 fee liability for the be made electronically in U.S. dollars by other than Pacific cod on an annual current year. automated clearing house, credit card, basis; except the Regional Administrator (3) Publication—(i) General. NMFS or electronic check drawn on a U.S. will establish an Amendment 80 will calculate and announce the bank account. standard price for rock sole for all Amendment 80 fee percentage in a

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Federal Register notice by December 1 debited from Amendment 80 CQ Amendment 80 fee liability, the of the year in which the Amendment 80 allocations by permit, species, date, and Regional Administrator may continue to landings were made. NMFS shall prices. prohibit issuance of an Amendment 80 calculate the Amendment 80 fee (d) Underpayment of fee liability—(1) CQ permit for any subsequent calendar percentage based on the calculations No Amendment 80 cooperative will years until NMFS receives the unpaid described in paragraph (c)(2) of this receive its Amendment 80 CQ until the fees. If payment is not received by the section. Amendment 80 CQ permit holder 30th day after the final agency action, (ii) Effective period. The calculated submits full payment of an applicant’s the agency may pursue collection of the Amendment 80 fee percentage is complete Amendment 80 fee liability. unpaid fees. applied to Amendment 80 CQ landings (2) If an Amendment 80 CQ permit (e) Overpayment. Upon issuance of made between January 1 and December holder fails to submit full payment for final agency action, payment submitted 31 of the same year. its Amendment 80 fee liability by the to NMFS in excess of the Amendment (4) Applicable percentage. The date described in paragraph (a)(3) of this 80 fee liability determined to be due by Amendment 80 CQ permit holder must section, the Regional Administrator the final agency action will be returned use the Amendment 80 fee percentage may: to the Amendment 80 cooperative applicable at the time an Amendment (i) At any time thereafter send an IAD unless the Amendment 80 cooperative’s 80 species landing is debited from an to the Amendment 80 cooperative’s representative requests the agency to Amendment 80 CQ allocation to representative stating that the credit the excess amount against the calculate the Amendment 80 fee Amendment 80 CQ permit holder’s Amendment 80 CQ permit holder’s liability for any retroactive payments for estimated fee liability, as indicated by future Amendment 80 fee liability. that Amendment 80 species. his or her own submitted information, is Payment processing fees may be (5) Fee liability determination for an the Amendment 80 fee liability due deducted from any fees returned to the Amendment 80 CQ permit holder. (i) All from the Amendment 80 CQ permit Amendment 80 cooperative. Amendment 80 CQ permit holders will holder. (f) Appeals. An Amendment 80 be subject to a fee liability for any (ii) Disapprove any application to cooperative representative who receives Amendment 80 species CQ debited from transfer Amendment 80 CQ to or from an IAD for incomplete payment of an an Amendment 80 CQ allocation the Amendment 80 CQ permit holder in Amendment 80 fee liability may appeal between January 1 and December 31 of accordance with § 679.91(g). under the appeals procedures set out a the current year. (3) If an Amendment 80 cooperative 15 CFR part 906. (ii) The Amendment 80 fee liability representative fails to submit full (g) Administrative Fees. assessed to an Amendment 80 CQ payment by the Amendment 80 fee Administrative fees may be assessed if permit holder will be based on the liability payment deadline described at the account drawn on to pay the CDQ proportion of the standard ex-vessel paragraph (a)(3) of this section: fee liability has insufficient funds to value of Amendment 80 species debited (i) No Amendment 80 CQ permit will cover the transaction, or if the account from an Amendment 80 CQ permit be issued to that Amendment 80 becomes delinquent. Additionally, holder relative to all Amendment 80 CQ cooperative for the following calendar interest will begin to accrue on any permit holders during a calendar year as year; and portion of the fee that has not been paid determined by NMFS. (ii) No Amendment 80 CQ will be (iii) NMFS will provide a fee liability issued based on the Amendment 80 QS due to insufficient funds. summary letter to all Amendment 80 CQ held by the members of that (h) Annual report. NMFS will publish permit holders by December 1 of each Amendment 80 cooperative to any other annually a report describing the status year. The summary will explain the fee CQ permit for that calendar year. of the Amendment 80 Cost Recovery Fee liability determination including the (4) Upon final agency action Program. current fee percentage, and details of determining that an Amendment 80 CQ [FR Doc. 2014–30841 Filed 1–6–15; 8:45 am] Amendment 80 species CQ pounds permit holder has not paid his or her BILLING CODE 3510–22–P

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Part IV

Department of the Treasury

31 CFR Part 148 Qualified Financial Contracts Recordkeeping Related to Orderly Liquidation Authority; Proposed Rule

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DEPARTMENT OF THE TREASURY www.regulations.gov, or by mail (if hard 1. Description of the Need for the copy, preferably an original and two Regulatory Action 31 CFR Part 148 copies) to: The Treasury Department, 2. Literature Review Attn: Qualified Financial Contracts a. Fire Sales Among Financial Institutions RIN 1505–AC36 b. Costs of Lehman Brothers Bankruptcy Recordkeeping Comments, 1500 c. Conclusion Qualified Financial Contracts Pennsylvania Avenue NW., Washington, 3. Baseline Recordkeeping Related to Orderly DC 20220. Because paper mail in the 4. Evaluation of Alternatives Liquidation Authority Washington, DC area may be subject to a. Scope of the Proposed Rules delay, it is recommended that comments b. Content of Records AGENCY: The Secretary of the be submitted electronically. Please c. Standardized Recordkeeping Department of the Treasury, as include your name, affiliation, address, 5. Affected Population Chairperson of the Financial Stability 6. Assessment of Potential Costs and email address, and telephone number in Benefits Oversight Council. your comment. Comments will be a. Potential Costs ACTION: Notice of proposed rulemaking. available for public inspection on b. Potential Benefits www.regulations.gov. In general, 7. Retrospective Analysis SUMMARY: The Secretary of the Treasury comments received, including (the ‘‘Secretary’’), as Chairperson of the attachments and other supporting I. Introduction Financial Stability Oversight Council, is materials, are part of the public record A. Executive Summary proposing rules (the ‘‘Proposed Rules’’) and are available to the public. Do not to implement the qualified financial submit any information in your The Dodd-Frank Act was enacted on 1 contract (‘‘QFC’’) recordkeeping comment or supporting materials that July 21, 2010. As part of a new and requirements of the Dodd–Frank Wall you consider confidential or comprehensive regulatory framework, Street Reform and Consumer Protection inappropriate for public disclosure. Title II of the Dodd-Frank Act (‘‘Title II’’) generally establishes a mechanism Act (‘‘Act’’ or the ‘‘Dodd–Frank Act’’). FOR FURTHER INFORMATION CONTACT: for the orderly resolution of a financial The Act provides that if the federal Monique Rollins, Acting Deputy company whose failure and resolution primary financial regulatory agencies do Assistant Secretary for Capital Markets; under otherwise applicable federal or not prescribe joint final or interim final Patricia Kao, Director, Office of state law would have serious adverse regulations requiring financial Financial Institutions Policy: (202) 622– effects on financial stability in the companies to maintain records with 4948. respect to QFCs to assist the Federal United States. A ‘‘financial company’’ SUPPLEMENTARY INFORMATION: Deposit Insurance Corporation (‘‘FDIC’’) under Title II is a company that is as receiver for a covered financial Table of Contents incorporated or organized under any company to exercise its rights and fulfill provision of federal law or the laws of its obligations under the Act within 24 I. Introduction any State (as defined in 12 U.S.C. months of the enactment of the Act, the A. Executive Summary 5301(16)) that is: B. Publication of the Notice of Proposed • A bank holding company; Chairperson of the Financial Stability Rulemaking • Oversight Council (the ‘‘Council’’) shall A nonbank financial company II. Background—QFCs and Receivership supervised by the Board of Governors of prescribe, in consultation with the III. The Proposed Rules the Federal Reserve System (‘‘Board’’); FDIC, such regulations. The Secretary, A. Scope, Purpose, Effective Date and • Any company that is predominantly Compliance Dates as Chairperson of the Council, is engaged in activities that the Board has proposing the Proposed Rules in 1. Scope a. Key Definitions determined are financial in nature or consultation with the FDIC because the incidental thereto for purposes of federal primary financial regulatory b. Records Entities Within a U.S. Holding Company section 4(k) of the Bank Holding agencies did not so prescribe joint final c. Clearing Organizations Company Act of 1956 (‘‘BHC Act’’); 2 or or interim final regulations. The d. Scope of Proposed Rules • Any subsidiary of such financial Proposed Rules would require 2. Purpose company that is itself predominantly recordkeeping with respect to positions, 3. Effective Date and Compliance Dates engaged in activities that the Board has counterparties, legal documentation and B. General Definitions determined are financial in nature or collateral. This information is necessary C. Form, Availability, and Maintenance of Records incidental thereto for purposes of to assist the FDIC as receiver to: Fulfill section 4(k) of the BHC Act, other than its obligations under the Dodd–Frank 1. Form and Availability 2. Maintenance and Updating an insured depository institution or an Act in deciding whether to transfer 3. Exemptions insurance company.3 QFCs; assess the consequences of D. Content of Records The Title II orderly liquidation decisions to transfer, disaffirm or 1. General Information mechanism is modeled in part on repudiate, or allow the termination of, 2. Appendix Information QFCs with one or more counterparties; IV. Administrative Law Matters 1 Dodd-Frank Wall Street Reform and Consumer determine if any financial systemic risks A. Initial Regulatory Flexibility Analysis Protection Act, Pub. L. 111–203, 124 Stat. 1376 are posed by the transfer, disaffirmance 1. Statement of the Need for, Objectives of, (2010). or repudiation, or termination of such and Legal Basis for the Proposed Rules 2 The FDIC has published a final rule that 2. Small Entities Affected by the Proposed identifies the activities listed in section 4(k) of the QFCs; and otherwise exercise its rights Rules BHC Act and the Board’s Regulation Y (12 CFR part under the Act. The Secretary is 3. Projected Recordkeeping and Other 225) that would be considered financial in nature requesting comment on all aspects of Compliance Requirements or incidental thereto for purposes of Title II. See 78 the Proposed Rules. 4. Identification of Duplication, FR 34712 (June 10, 2013). 3 Overlapping, or Conflicting Federal Dodd-Frank Section 201(a)(11), 12 U.S.C. DATES: Written comments must be 5381(a)(11). The definition excludes Farm Credit Rules received by April 7, 2015. System institutions chartered under and subject to 5. Significant Alternatives to the Proposed ADDRESSES: the provisions of the Farm Credit Act; governmental Submit comments Rules entities; and regulated entities, as defined under electronically through the Federal B. Paperwork Reduction Act section 1303(20) of the Federal Housing Enterprises eRulemaking Portal: http:// C. Executive Orders 12866 and 13563 Financial Safety and Soundness Act of 1992.

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provisions of the Federal Deposit agencies, as defined in the Act 10 (the necessary that financial companies that Insurance Act (‘‘FDIA’’) 4 regarding ‘‘PFRAs’’), to jointly prescribe, by July qualify as records entities maintain the insolvencies of insured depository 21, 2012, final or interim final capacity to generate, on an ongoing institutions. Under Title II, the FDIC has regulations that require financial basis, QFC information in a common been given similar responsibilities as companies to maintain such records data format. To facilitate the resolution under the FDIA, including receivership with respect to QFCs that the PFRAs of QFC portfolios, the FDIC needs to authority over financial companies in determine to be necessary or analyze such data upon being appointed default or in danger of default for which appropriate to assist the FDIC as as receiver under Title II. The a determination has been made by the receiver for a covered financial information must be sufficient to allow Secretary (in consultation with the company. Section 210(c)(8)(H) further the FDIC to estimate the financial and President) to seek the appointment of provides that if the PFRAs do not so operational impact on the covered the FDIC as receiver pursuant to section prescribe such joint regulations by July financial company or its affiliated 203(b) of the Dodd-Frank Act. 21, 2012, the Secretary, as Chairperson companies of the FDIC’s decision to Title II includes provisions, set forth of the Council, shall prescribe such transfer, disaffirm or repudiate, or retain at section 210(c)(8), concerning the regulations in consultation with the the QFCs. It must also allow the FDIC QFCs held by covered financial FDIC. to assess the potential impact that such companies. A ‘‘QFC’’ is a securities As the PFRAs did not prescribe such decisions may have on the financial contract, commodities contract, forward regulations by the statutory deadline, markets as a whole. The standardized contract, repurchase agreement, swap the Secretary, as Chairperson of the data format would reduce the time and agreement, or any similar agreement Council, in consultation with the FDIC, effort needed by the FDIC to perform the that the FDIC determines by regulation, is publishing the Proposed Rules. As analysis and would facilitate resolution, or order to be a qualified described in greater detail below, the comparison of QFC data across financial financial contract; 5 and a ‘‘covered Proposed Rules would apply to a companies with large complex QFC financial company’’ is a financial ‘‘records entity,’’ which is defined in the portfolios. company, other than an insured Proposed Rules to include certain types The Proposed Rules also would allow depository institution, for which the of financial companies that are parties the Secretary to issue conditional or Secretary has made a determination to to an open QFC or guarantee, support, unconditional general and specific seek the appointment of the FDIC as or are linked to an open QFC and that exemptions from one or more receiver under the Dodd-Frank Act.6 meet certain size or other thresholds requirements in the rule as the Secretary The treatment afforded to QFCs under (such as risk, complexity, and determines to be necessary or Title II parallels the treatment afforded interconnectedness), or other conditions appropriate, including whether to them under section 11(e) of the or are certain affiliates in the same application of one or more requirements FDIA.7 Under Title II and the FDIA, corporate group as a financial company of the rule would not be necessary to from the time the FDIC is appointed as that meets these thresholds or achieve the purpose of the rule. The receiver until 5 p.m. (eastern time) on conditions (referred throughout this issuance of a conditional or the business day following the date of release as ‘‘affiliated financial unconditional exemption would be the appointment, a QFC counterparty is companies’’) and that are party to an consistent with section 210(c)(8)(H)(iv) prohibited from exercising any open QFC or that guarantee, support, or of the Act which provides that the contractual rights (including are linked to an open QFC of an regulations required by section termination) triggered by the affiliate.11 210(c)(8)(H)(i) differentiate among appointment of the receiver.8 The Proposed Rules would require financial companies, as appropriate, by After its appointment as receiver and these records entities to maintain taking into consideration a number of prior to 5 p.m. on the following business detailed information about their QFC factors. Specifically, the Secretary day, the FDIC has three options for a positions and be capable of providing would consider whether to grant an QFC to which a covered financial this information to their PFRAs within exemption after receiving a company is a party: 24 hours of request by their PFRAs. This recommendation from the FDIC, (1) Transfer the QFC to another would assist the FDIC in resolving prepared in consultation with the financial institution; financial companies that may be subject applicable PFRAs, that takes into (2) Retain the QFC within the to an orderly liquidation under Title II consideration the financial company’s receivership and allow the counterparty of the Dodd-Frank Act based on or financial companies’ size, risk, to terminate; or consideration of such financial complexity, leverage, frequency and (3) Retain the QFC within the companies’ size, risk, complexity, dollar amount of QFCs, and receivership and disaffirm or repudiate leverage, frequency and dollar amount interconnectedness to the financial the QFC and pay compensatory of QFCs and interconnectedness to the system and any other factors deemed damages.9 financial system, and any other factors necessary or appropriate. In order to assess the options that deemed appropriate.12 To that end, it is The proposed recordkeeping would be available following its requirements of the Proposed Rules are appointment as receiver, the FDIC needs 10 12 U.S.C. 5301(12). See the term ‘‘primary based, in part, on 12 CFR part 371, detailed information about the covered financial regulatory agency.’’ 11 The term ‘‘affiliated financial companies’’ used Recordkeeping Requirements for 13 financial company’s QFCs. Section in this release is the combination of two defined Qualified Financial Contracts, which 210(c)(8)(H) therefore requires that the terms in the Proposed Rules: ‘‘affiliate’’ is defined Federal primary financial regulatory in § 148.2(a) and ‘‘financial company’’ is defined in 13 73 FR 78170 (Dec. 22, 2008). Part 371 requires § 148.2(f) of the Proposed Rules. An affiliated an insured depository institution in troubled financial company of a records entity would itself 4 12 U.S.C. 1811 et seq. condition, upon written notification by the FDIC, to be a records entity if it is not an exempt entity and produce immediately at the close of processing of 5 12 U.S.C. 5390(c)(8)(D)(i). is a party to an open QFC or guarantees, supports, the institution’s business day, for a period provided 6 12 U.S.C. 5381(a)(8). or is linked to an open QFC of an affiliate. An in the notification, the electronic files for certain 7 12 U.S.C. 1821(e). ‘‘open’’ QFC is a QFC which has not been fully position level and counterparty level data; 8 See e.g., 12 U.S.C. 5390(c)(9) and (10). performed. electronic or written lists of QFC counterparty and 9 12 U.S.C. 5390(c)(1), (10) and (11). 12 See 12 U.S.C. 5390(c)(8)(H)(iv). Continued

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implements section 11(e)(8)(H) of the contact information within 60 days of insolvency or the appointment of a FDIA.14 The Proposed Rules also have becoming a records entity. receiver until after 5 p.m. (eastern time) been informed by the FDIC’s experience on the first business day following the II. Background—QFCs and with both large and small portfolios of appointment of the FDIC as receiver,25 Receivership QFCs of failed insured depository nor do they permit counterparties to institutions. A QFC is a type of financial contract terminate a QFC because of its transfer The recent financial crisis and is defined in section 210(c)(8) of the to a bridge entity or another financial demonstrated that management of QFC Act. As further described below, QFCs institution.26 positions, including steps undertaken to are treated differently than other types After its appointment as receiver and close out such positions, can be an of contracts in the event of the failure prior to the close of the 5 p.m. window, important element of a resolution of a financial company.15 The treatment the FDIC has three options in managing strategy which, if not handled properly, afforded to QFCs under Title II parallels a covered financial company’s QFC may magnify market instability. The the treatment afforded to QFCs under portfolio. With respect to all of the 16 recordkeeping requirements of the section 11(e) of the FDIA. covered financial company’s QFCs with Proposed Rules are designed to ensure Under section 210(c)(8), QFCs include a particular counterparty, and its that the FDIC, as receiver of a covered five specific types of financial contracts: affiliates, the FDIC may: financial company, will have securities contracts, commodity (1) Transfer the QFCs to another comprehensive information about the contracts, forward contracts, repurchase 17 institution, including a bridge financial QFC portfolio maintained by such agreements, and swap agreements. company established by the FDIC; 27 financial company subject to orderly The FDIC is empowered to define other (2) Retain the QFCs within the resolution, and to enable the FDIC to similar agreements as QFCs by rule, 18 receivership and allow the counterparty plan the rapid and orderly resolution of regulation or order. In addition, a to terminate; or master agreement that governs any a financial company’s QFC portfolio in (3) Retain the QFCs within the contracts in these five categories is the event of insolvency. The Proposed receivership, disaffirm or repudiate the treated as a QFC.19 Security agreements, Rules are also designed to provide the QFCs, and pay compensatory guarantees, credit enhancements or FDIC with information necessary for the damages.28 reimbursement obligations that relate to FDIC as receiver to comply with the Within certain constraints,29 the FDIC QFCs are also defined to be QFCs.20 All statutory requirements for the transfer, can take different approaches to QFCs swaps and security-based swaps defined disaffirmance, or repudiation of the with different counterparties. However, in Title VII of the Act qualify as QFCs QFCs of a financial company, within the receiver’s power to transfer or under section 210(c)(8). any applicable time periods mandated repudiate a QFC is limited. If the FDIC under Title II of the Dodd-Frank Act. The filing of a bankruptcy petition or the appointment of the FDIC as receiver as receiver desires to transfer any QFC B. Publication of the Notice of Proposed triggers an automatic stay that precludes with a particular counterparty, it must Rulemaking a party to most types of contracts with transfer all QFCs between the covered financial company and such The Secretary is publishing this an insolvent company from taking actions under that contract.21 Therefore, counterparty and any affiliate of such notice of proposed rulemaking in light counterparty to a single financial of his responsibilities under section most types of contracts with a financial company cannot be terminated based institution. Similarly, if the FDIC 210(c)(8)(H) of the Dodd-Frank Act. The desires to repudiate any QFC with a Secretary is seeking comment on all solely upon the appointment of the FDIC as receiver.22 Under Title II, the particular counterparty, it must aspects of the Proposed Rules. repudiate all QFCs between the covered The Proposed Rules provide that the FDIA, and other U.S. insolvency financial company and such compliance date for most of the statutes, however, a party to a QFC with counterparty and any affiliate of such provisions will be the day that is 270 an insolvent entity can exercise any of counterparty as a group.30 days after a records entity becomes its contractual rights to terminate such Transfer: The FDIC may transfer a subject to the final rule. Thus, for QFC, offset or net any amounts due, and QFC to any other financial institution entities that would be subject to the apply any pledged collateral for not subject to a bankruptcy or final rule on its effective date, the payment of such amounts subject to 23 insolvency proceeding. Such financial compliance date would be the day that certain conditions. Further, under is 270 days after the effective date of the Title 11 of the United States Bankruptcy Code (‘‘Bankruptcy Code’’), this right to 25 12 U.S.C. 1821(e)(10)(B)(i) and 12 U.S.C. final rule (which is 330 days after the 5390(c)(10)(B)(i). This time frame in which QFC date of publication). However, one terminate is immediate upon initiation counterparties are stayed from acting is in contrast 24 aspect of the Proposed Rules will of bankruptcy proceedings. However, to parties to other contracts with a failed financial require compliance in 60 days. Title II and the FDIA do not permit company, who are stayed from terminating such counterparties to exercise a contractual other contracts for 90 days. Specifically, on the effective date of the 26 right of termination based solely upon Id. There is an exception to this general rule final rule, a records entity must provide in section 210(c)(8)(G) with respect to cleared QFCs, up-to-date contact information to the which provides in relevant part that a clearing 15 FDIC and each of its PFRAs. A financial 12 U.S.C. 5390(c)(8), (9), and (10). organization would not be stayed from exercising 16 12 U.S.C. 1821(e). its rights to liquidate all positions and collateral of company that becomes a records entity 17 12 U.S.C. 5390(c)(8)(D)(i). The term ‘‘securities the covered financial company under the after the effective date of the final rule contract’’ includes contracts ‘‘for the purchase, sale company’s QFCs in certain circumstances. See 12 would be required to provide such or loan of a security[.]’’ 12 U.S.C. 5390(c)(8)(D)(ii). U.S.C. 5390(c)(8)(G). 18 12 U.S.C. 5390(c)(8)(D)(i). 27 12 U.S.C. 5390(c)(9). The FDIC as receiver of an 19 insolvent financial company may establish a bridge portfolio location identifiers, certain affiliates of the 12 U.S.C. 5390(c)(8)(D)(viii). 20 financial company and transfer to such company institution and the institution’s counterparties to 12 U.S.C. 5390(c)(8)(D)(ii)–(vi). assets and certain liabilities as the FDIC generally QFC transactions, contact information and 21 See 11 U.S.C. 361; 12 U.S.C. 1821(e)(13); 12 deems appropriate. 12 U.S.C. 5390(h). organizational charts for key personnel involved in U.S.C. 5390(c)(13). QFC activities, and contact information for vendors 22 12 U.S.C. 5390(c)(13) and 12 U.S.C. 28 12 U.S.C. 5390(c)(11). for such activities; and copies of key agreements 1821(e)(13)(A). 29 12 U.S.C. 5390(c)(11)(A). and related documents for each QFC. 23 See e.g.,12 U.S.C. 5390(c)(8)(A). 30 For transfer, see 12 U.S.C. 5390(c)(9)(A); for 14 12 U.S.C. 1821(e)(8)(H). 24 11 U.S.C. 362(b)(6), (7) and (17). repudiation, see 12 U.S.C. 5390(c)(11).

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institutions include, but are not limited to cover the termination value of the company.41 Such contracts can be to, banks, foreign banks,31 and bridge QFCs). enforced by the FDIC as receiver financial companies operated by the If the receiver repudiates the QFCs, it notwithstanding the insolvency, FDIC. If the FDIC as receiver transfers a must pay actual direct compensatory financial condition, or receivership of QFC to a financial institution within the damages,37 which may include the the financial company. Contracts which specified period of time, the normal and reasonable costs of cover or are guaranteed or otherwise supported counterparty cannot exercise its other reasonable measure of damages by the covered financial company contractual right to terminate the QFC used in the industry for such claims remain enforceable by the FDIC if the solely by reason of or incidental to the (after giving effect to any contractual FDIC transfers any such guaranty or appointment of the FDIC as receiver, or netting rights of the counterparty). Such other support and all related assets and the insolvency or financial condition of damages are calculated as of the date of liabilities to a bridge financial company the covered financial company.32 If the repudiation.38 or third-party financial institution not FDIC as receiver decides to transfer any Retention: The FDIC’s retention of a subject to a bankruptcy or insolvency QFCs, it must take steps reasonably QFC in the receivership would allow a proceeding within the period of time calculated to provide notice of the counterparty to terminate the contract provided under section 210(c)(10), or if transfer of the QFCs of the failed after 5 p.m. (eastern time) on the first the FDIC provides adequate financial company to the relevant business day after the appointment of protection 42 with respect to the support counterparties.33 The counterparties the FDIC as receiver.39 If the of such contracts.43 The FDIC as must accept the transferee as a counterparty then terminates QFCs with receiver may also need to make sure that counterparty and cannot terminate the the financial company, the counterparty affiliates 44 of the covered financial QFC solely by reason of such transfer.34 may exercise any contractual right it company continue to perform their QFC Disaffirmance or Repudiation: The may have to net any payment the obligations in order to preserve the FDIC as receiver may disaffirm or counterparty owes to the receivership critical operations of the covered repudiate a QFC within a reasonable against any payment owed by the financial company and its affiliates. In period of time if the receiver determines receivership to the counterparty with such cases, the FDIC may need to that the contract is burdensome.35 If the respect to QFCs as set forth in any provide additional liquidity, support, or receiver does not elect to transfer all netting agreement. collateral to the affiliates to enable them QFCs with a given counterparty (and In order to assess by 5 p.m. on the to meet collateral obligations and with its affiliates), under the law the business day following the date of its generally perform their QFC receiver has a ‘‘reasonable time’’ in appointment as receiver of a financial obligations.45 The Proposed Rules which to repudiate such QFCs. company its options to retain and allow therefore would impose recordkeeping However, as a practical matter, the the counterparty to terminate, retain and requirements on affiliated financial receiver must promptly decide whether disaffirm or repudiate, or transfer QFCs, companies in a corporate group because to repudiate all QFCs involving such the FDIC needs detailed information the Secretary, as informed by the FDIC, counterparty (and its affiliates), in order about the company’s QFCs. To make a to minimize the potential for an adverse well-informed decision on these three implementing section 210(c)(16) of the Orderly options, the FDIC needs access to the Liquidation Authority provisions of the Dodd-Frank change in the market value of such Act. The FDIC published a final rule addressing all QFCs. For example, although information required to be maintained aspects of section 210(c)(16) on October 16, 2012. counterparties to QFCs that are not under the Proposed Rules. The 77 FR 63205 (‘‘FDIC Final Rule’’). transferred are not required to terminate information must be sufficient to allow 41 12 U.S.C. 5390(c)(16). This section provides for the FDIC to estimate the financial and the enforcement of contracts guaranteed by a the contracts immediately after the financial company subject to orderly liquidation 36 expiration of a one-business day stay, operational impact on the covered under Title II. they may decide to exercise any financial company or its affiliated 42 Under the FDIC final rule, contracts ‘‘supported contractual right they have to terminate financial companies of the receiver’s by’’ a covered financial company may also be in order to protect against the potential decision to transfer, repudiate or retain enforced by providing ‘‘adequate protection’’ either the QFCs. It must also allow the FDIC in the alternative to transferring any related support adverse change in the market value of or in combination with a partial transfer of such the QFCs (especially if the to assess the potential impact that such support. Adequate protection, with respect to the counterparties have sufficient collateral decisions may have on the financial covered financial company’s support of the markets as a whole. obligations under such contracts, means: (1) making a cash payment or periodic cash payments to 31 Under the Act, the FDIC as receiver The FDIC as receiver of a covered financial counterparties to the extent that the failure to cause company may not transfer QFCs to a foreign bank has additional powers with respect to the assignment and assumption of the covered unless, under applicable law, the contractual rights contracts of subsidiaries or affiliates of financial company’s support and related assets and of the parties to such QFCs and any netting a covered financial company that are liabilities causes a loss to the counterparties; (2) contracts, security agreements or arrangements or provision by the FDIC as receiver of a guarantee of other credit enhancements related to any such QFCs guaranteed or otherwise supported by or 40 the subsidiary or affiliate’s obligations; or, (3) are enforceable substantially to the same extent as linked to such covered financial provision of relief that will result in realization by under 12 U.S.C. 5390. 12 U.S.C. 5390(c)(9)(B). the counterparty of the ‘‘indubitable equivalent of 32 12 U.S.C. 5390(c)(10)(B) and 12 U.S.C. 37 The receiver’s payment obligation is subject to the covered financial company’s support of such 5390(c)(16). the claims process of 12 U.S.C. 5390(a)(2). obligations or liabilities.’’ The definition of the term 33 See 12 U.S.C. 5390(c)(10)(B). Therefore, if the counterparty does not have a ‘‘adequate protection’’ is consistent with the 34 12 U.S.C. 5390(c)(10)(B). perfected security interest in collateral sufficient to definition under section 361 of the United States 35 12 U.S.C. 5390(c)(1). satisfy its claim, the counterparty might not receive Bankruptcy Code. 77 FR 63205. 36 See 12 U.S.C. 5390(c)(8)(F)(ii), which provides cash payment in full. 43 12 U.S.C. 5390(c)(16)(A)(ii). See also 77 FR that any payment or delivery obligations otherwise 38 12 U.S.C. 5390(c)(3). 63205. due from a party pursuant to the QFC shall be 39 12 U.S.C. 5390(c)(10)(B)(i). 44 The term ‘‘affiliate’’ is defined in § 148.2(a) of suspended from the time at which the FDIC is 40 12 U.S.C. 5390(c)(16). Section 210(c)(16) does the Proposed Rules as any entity that controls, is appointed as receiver under the earlier of (I) the not define the terms ‘‘linked’’ to, or ‘‘guaranteed or controlled by, or is under common control with a time at which such party receives notice that such supported’’ by, the covered financial company. As financial company or counterparty. contract has been transferred pursuant to section explained later in this preamble, the Proposed 45 See 12 U.S.C. 5384(d). Section 204(d) of the Act 210(c)(10)(A), or (II) 5 p.m. (eastern time) on the Rules include definitions of ‘‘guaranteed or authorizes the FDIC, for example, to make loans to business day following the date of the appointment supported’’ and ‘‘linked’’ that are consistent with and guarantee the obligations of the covered of the FDIC as receiver. the definitions of such terms in the FDIC final rule financial company and its covered subsidiaries.

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believes that the information would be information, it is possible that QFCs • Table A–1—Position-Level Data necessary or appropriate in assisting the could be left in the receivership, when • Table A–2—Counterparty Collateral FDIC in exercising its rights as receiver transfer to a solvent financial institution Data for a financial company with affiliates. or a bridge financial company would be • Table A–3—Legal Agreements In addition, the imposition of a preferred course of action. The • Table A–4—Collateral Detail Data recordkeeping requirements on absence of QFC data may reduce the The discussion in this section of the affiliated financial companies could also FDIC’s flexibility in managing the QFC release is based on the organization of assist the FDIC as receiver of one or portfolio, and may increase systemic the Proposed Rules and the Appendix is more of such affiliated financial risk. discussed in a separate subsection companies of the Act in fulfilling its However, to reduce the burdens on below. The Secretary asks questions and obligations under section 210(c)(8), (9), financial companies, the Proposed Rules solicits comment in each subsection or (10).46 provide that upon receipt of a written with respect to the related parts of the Under Title II, the FDIC may become recommendation from the FDIC, Proposed Rules or the Appendix. receiver for financial companies of a prepared in consultation with the substantial size or complexity. These primary financial regulatory agencies for A. Scope, Purpose, Effective Date and large and complex companies and the applicable records entities, the Compliance Dates certain of their affiliates that enter into Secretary may grant conditional or Section 148.1(a) of the Proposed Rules QFCs may hold large and complex unconditional exemptions as the defines the scope of the rules and portfolios of QFCs. Such financial Secretary determines to be necessary or provides that the rules apply to each companies and their affiliates often have appropriate. Such exemptions could financial company that is a ‘‘records counterparties that are themselves include a conditional exemption to entity.’’ Section 148.1(b) explains the members of large, complex, and allow for a different recordkeeping purpose of the rules. Section 148.1(c) interconnected corporate financial format than that set forth in the sets forth the rule’s effective and groups. Therefore QFCs tend to increase Proposed Rules. For example, financial compliance dates. The Proposed Rules the interconnectedness of the financial companies are required to report some are discussed below, followed by the system and systemic risk. They are also QFC data to swap data repositories Secretary’s questions regarding their an important and integral component of (‘‘SDRs’’),47 and some data may be subject matter. a Title II resolution, presenting multiple available through derivatives clearing challenges to an orderly liquidation organizations registered with the CFTC 1. Scope process. Given the limited post- or clearing agencies registered with the a. Key Definitions receivership time frame allowed by Title SEC (collectively referred to in this The scope of the Proposed Rules is 48 II for the FDIC to make decisions release as ‘‘clearing organizations’’). established by certain key definitions regarding QFCs, it is important that the The Secretary notes that the FDIC would which determine the entities that would FDIC has adequate time to obtain QFC need to be able to manipulate and be subject to the rules. Specifically data, conduct necessary analysis, and analyze such data to determine the section 148.1(a) of the Proposed Rules make informed decisions on a QFC effect of FDIC decisions under Title II provides that the rules would apply to portfolio. with respect to a covered financial any ‘‘financial company’’ that is a Therefore, the Secretary in company’s QFC portfolio. ‘‘records entity’’ as those terms are consultation with the FDIC is proposing defined in the Proposed Rules. The the Proposed Rules described below. III. The Proposed Rules definitions of ‘‘financial company,’’ The Proposed Rules are similar to the The following section describes the ‘‘records entity,’’ and other related FDIC’s Part 371 but the information requirements in the Proposed Rules and definitions are explained below, requirements of the Proposed Rules are the rationale underlying the followed by an illustrative discussion of more extensive. Unlike the FDIC’s Part requirements. The Proposed Rules set the records entities within a U.S. bank 371 (which requires that only banks in forth the general requirements for holding company structure, a summary ‘‘troubled condition’’ maintain records financial companies, while the detailed of the application of the Proposed Rules of QFCs) the Proposed Rules do not lists of the records that would be to clearing organizations, and a contain such a ‘‘troubled financial required to be maintained are provided discussion of the records entities that condition’’ trigger. The recordkeeping in the Appendix in the Proposed Rules. may come within the scope section of requirements of the Proposed Rules The Proposed Rules are organized the Proposed Rules. have been informed by the FDIC’s into four parts: • Financial Company: The Proposed experience in dealing with multiple Section 148.1 Scope, purpose, Rules incorporate the definition of a QFC portfolios of insured depository effective date, and compliance dates • ‘‘financial company’’ set forth in section institutions. The data requirements were Section 148.2 Definitions • 201(a)(11) of the Dodd-Frank Act. also informed by efforts to standardize Section 148.3 Form, availability and Entities that are not included in the regulatory data. maintenance of records • section 201(a)(11) definition of Given the short time frame for the Section 148.4 Content of records The Appendix in the Proposed Rules ‘‘financial company’’ would not be FDIC to make decisions regarding a QFC list the records that would be required included in the definition of ‘‘records portfolio of significant size or to be maintained and provide the file entity’’ and, therefore, would not be complexity, the Proposed Rules would structure for the QFC recordkeeping subject to the rules. Entities that are also require the use of an updated and requirements. The Appendix is included in the section 201(a)(11) standardized format to allow the FDIC organized as follows: definition of ‘‘financial company’’ to obtain and process the large amount would be subject to the rules if they also of QFC information quickly. In the 47 Not all QFC data would be reported under Title meet the other criteria in the definition absence of updated and standardized VII of the Dodd-Frank Act. Some QFCs may not of records entity. In addition, the have central reporting repositories. 46 For example, the FDIC could be appointed as 48 Clearing organizations would include central definition of ‘‘covered financial receiver of an affiliated financial company under counterparties and security-based swap clearing company’’ in section 201(a)(8)(B) of the section 210(a)(1)(E) of the Act. organizations. Dodd-Frank Act excludes insured

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depository institutions,49 which as a leverage, frequency and dollar amount section 210(c)(8)(H)(iv) in developing result are ineligible for orderly of QFCs, and interconnectedness to the the scope of the definition of records liquidation under Title II. Thus, based financial system in addition to other entity. The Secretary has decided to on the section 201(a)(11) definition of factors described herein.53 The records include in the scope of the definition of ‘‘financial company’’ and the section entity definition would include a records entity those financial companies 201(a)(8)(B) definition of ‘‘covered financial company that is a party to an that: (1) the Council determines could financial company,’’ the following open QFC or guarantees, supports, or is pose a threat to U.S. financial stability; entities would not be required to linked to an open QFC of an affiliate (2) the Council designates as maintain records under the Proposed and is a member of a corporate group in systemically important financial market Rules: which at least one financial company utilities; and (3) financial companies • Financial companies that are not meets one of three other criteria for that have at least $50 billion in assets, incorporated or organized under U.S. being a records entity. Because affiliated for several reasons. First, the factors the federal or state law; financial companies that are part of the Council must consider in designating a • Farm Credit System institutions; same corporate group may play an nonbank financial company as posing a • Governmental entities, and important role in determining risks that threat to financial stability under regulated entities under the Federal are present, the information about the section 113 of the Act, or a financial Housing Enterprises Financial Safety affiliates’ QFCs could assist the FDIC as market utility as systemically important and Soundness Act of 1992 (‘‘FHA’’); 50 receiver. Furthermore, the FDIC has under section 804, are similar to the and authority to enforce the QFCs of factors listed in section 210(c)(8)(H)(iv). • Insured depository institutions. affiliates of covered financial The Council may make a determination The following financial companies companies, the obligations of which are under section 113 if it finds that would be subject to the rules if they are guaranteed or otherwise supported by or material financial distress at the incorporated or organized under any linked to the covered financial nonbank financial company, or the provision of federal law or the laws of company.54 nature, scope, size, scale, concentration, any State and meet the definition of A ‘‘records entity’’ is defined in interconnectedness, or mix of the ‘‘records entity’’ in the rules: section 148.2(l) of the Proposed Rules as activities of the nonbank financial • A bank holding company; a financial company that: is not an company could pose a threat to the • A nonbank financial company exempt entity; is a party to an open financial stability of the United States.57 supervised by the Board; QFC, or guarantees, supports or is Similarly, in making a determination • Any company that is predominantly linked to an open QFC; and meets one that a financial market utility is or is engaged in activities that the Board has of the following requirements: (a) Is likely to become systemically important, determined are financial in nature or determined pursuant to 12 U.S.C. 5323 the Council is required to consider the incidental thereto for purposes of (Title I of the Dodd-Frank Act) to be an effect that the failure of or a disruption section 4(k) of the BHC Act; and entity that could pose a threat to the to the financial market utility would • Any subsidiary (other than an financial stability of the United States; have on critical markets, financial insured depository institution or (b) Is designated pursuant to 12 U.S.C. institutions, or the broader financial insurance company) of such financial 5463 (Title VIII of the Dodd-Frank Act) system.58 The Secretary believes that it company where such subsidiary is as a financial market utility 55 that is, or would be unnecessary to create a predominantly engaged in activities that is likely to become, systemically different scheme for determining the the Board has determined are financial important; or (c) Has total assets equal scope of financial companies subject to in nature or incidental thereto for to or greater than $50 billion,56 or (d) Is recordkeeping for the purposes of this purposes of section 4(k) of the BHC a party to an open QFC or guarantees, rulemaking.59 Act.51 supports, or is linked to an open QFC Records Entity: Each records entity of an affiliate and is a member of a 57 Section 113 authorizes the Council to make would be required to maintain records corporate group within which at least determinations for U.S. nonbank financial companies and foreign nonbank financial with respect to all of its QFCs unless one affiliate meets one of the companies pursuant to two separate paragraphs, but such records entity receives an requirements in (a), (b), or (c). the considerations related to the financial stability exemption under the rules.52 In The Secretary has adequately of the United States are nearly identical. See 12 developing the definition of a records considered the factors referenced in U.S.C. 5323(a) and (b). A determination under section 113 would mean that the nonbank financial entity, the Secretary took into company would be subject to supervision by the 53 consideration factors such as financial See 12 U.S.C. 5390(c)(8)(H)(iv). Board of Governors of the Federal Reserve System company size, risk, complexity, 54 12 U.S.C. 5390(c)(16). and to enhanced prudential standards established 55 See Title VIII, ‘‘Payment, Clearing, and in accordance with Title I. See 12 U.S.C. 5365. Settlement Supervision Act of 2010.’’ 12 U.S.C. 58 12 U.S.C. 5463(a)(2)(D). 49 12 U.S.C. 5381(a)(8)(B). 5461, et seq. A financial market utility is defined 59 The first proposed prong under § 148.2(l)(3) of 50 12 U.S.C. 4502(20). This provision, therefore, in section 802(6) of Title VIII as any person that the Proposed Rules includes those entities that the excludes from the orderly liquidation authority of manages or operates a multilateral system for the Council designates as posing a threat to U.S. Title II the Federal National Mortgage Association purpose of transferring, clearing, or settling financial stability. The Council takes into and any affiliate thereof, the Federal Home Loan payments, securities, or other financial transactions consideration each of the factors expressly Mortgage Corporation and any affiliate thereof, and among financial institutions or between financial referenced in section 210(c)(8)(H)(iv) as follows: any Federal Home Loan Bank. institutions and such person. 12 U.S.C. 5461(6)(A). leverage of a company is expressly considered 51 See 12 U.S.C. 1843(k)(4)(C). 56 Total assets would be determined based on the under rule 1310.11(a)(1) and (b)(1); complexity is 52 Exemptions would be available as outlined in most recent year-end consolidated statements of addressed in a variety of ways, including under § 148.3(c) of the Proposed Rules. For example, the financial condition filed with a primary financial rules 1310.11(a)(2) and (b)(2) regarding the extent Secretary may consent to the use of electronic regulatory agency. For financial companies that are and nature of off-balance-sheet exposures; records maintained in an SDR or internally at the not required to file such statements, total assets interconnectedness to the financial system is records entity which are not in the format set forth would be determined based on the consolidated addressed in several of the rules including rules in the Appendices to the Proposed Rules if such balance sheet for the most recent fiscal year-end. An 1310.11(a)(3)–(5) and (b)(3)–(5); size is expressly alternative format is sufficient to enable the FDIC entity, such as an investment adviser, that acts as addressed in rules 1310.11(a)(7) and (b)(7); as receiver to exercise its rights and fulfill its agent on behalf of a client and is not a party to that frequency and dollar amount of QFCs, to the extent obligations under 12 U.S.C. 5390(c)(8), (9), or (10). client’s QFC or does not support, guarantee or is not relevant, is addressed through rules 1310.11(a)(9) See discussion below in subsection III.3.C of this otherwise linked to that client’s QFC would not be and (10) and (b)(9)(10); and risk is addressed Supplementary Information. subject to the rule. Continued

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The Secretary also believes that the recordkeeping burdens by only Guaranteed, Supported, or Linked: $50 billion threshold is a useful means capturing those financial companies Under section 210(c)(16), the FDIC as for identifying entities that are of a with QFC positions for which the FDIC receiver for the covered financial sufficient size that they could is most likely to be appointed as company may enforce contracts of potentially be considered for orderly receiver. It does not, however, capture subsidiaries or affiliates that are liquidation under Title II, and therefore an entity, such as an investment adviser, ‘‘guaranteed,’’ ‘‘supported’’ by, or should be incorporated in the definition that acts as agent on behalf of a client ‘‘linked’’ to the covered financial of a records entity. A $50 billion asset and is not a party to or does not support, company. However, section 210(c)(16) threshold has been separately guarantee or is not otherwise linked to does not define these terms. The established for similar purposes under that client’s QFC. These criteria would Proposed Rules thus include a the Dodd-Frank Act.60 In particular, the serve to exclude from the scope of the definition of ‘‘guaranteed or supported’’ Council applies a $50 billion threshold rule small financial company corporate and a definition of ‘‘linked,’’ each of as an initial evaluation tool for groups that are unlikely to be subject to which is consistent with the definition determining whether a nonbank the orderly liquidation authority of Title of similar terms in the FDIC’s final rule financial company could pose a threat II. implementing section 210(c)(16) of the to the financial stability of the United Orderly Liquidation Authority Exempt Entity: An exempt entity that 63 States and should be subject to would be excluded from the definition provisions of the Dodd-Frank Act. heightened supervision under Title I of of ‘‘records entity’’ and, therefore, the Under the FDIC final rule, a contract is the Dodd-Frank Act, citing the potential scope of the rules is defined in section ‘‘linked’’ to a covered financial for these types of firms to pose a threat 148.2(e) of the Proposed Rules as: company if it contains a ‘‘specified to U.S. financial stability.61 financial condition clause,’’ which is Finally, a nonbank financial company (1) An insured depository institution as any provision that permits a contract supervised by the Board, a designated defined in 12 U.S.C. 1813(c)(2); counterparty to terminate, accelerate, (2) A subsidiary of an insured depository financial market utility, or a financial institution that is not a functionally regulated liquidate, or exercise any other remedy company (including a bank holding subsidiary as defined in 12 U.S.C. 1844(c)(5), under any contract to which the company) with total assets of $50 billion a security-based swap dealer as defined in 15 subsidiary or affiliate is a party or to or more are the types of financial U.S.C. 78c(a)(71), or a major security-based obtain possession of or exercise control companies that potentially would be the swap participant as defined in 15 U.S.C. over any property of the subsidiary or most likely to be considered for orderly 78c(a)(67); or affiliate or affect any contractual rights liquidation under Title II. Therefore, the (3) A financial company that is not a party of the subsidiary or affiliate based on Secretary proposes including this set of to a QFC and controls only exempt entities enumerated conditions related to the financial companies in the definition of as defined in clause (1) of this definition. insolvency or financial condition of the records entity for purposes of the Insured depository institutions are covered financial company. The FDIC Proposed Rules. The definition of proposed to be exempt because they are final rule also defines the term records entity is thus designed to reduce excluded from the definition of covered ‘‘support’’ as undertaking any of the financial company and thus from the following for the purpose of supporting directly and indirectly through various rules, scope of Title II regardless of whether the contractual obligations of a including for instance rules 1310.11(a)(1), (a)(2), subsidiary or affiliate of a covered (a)(10) and (11), (b)(1), (b)(2) and (b)(10) and (11). they are also a major swap or security- See 12 CFR part 1310. See also 77 FR 21637. The based swap participant or a swap or financial company: guaranteeing, second proposed prong under § 148.2(l)(3) of the security-based swap dealer.62 In indemnifying, or undertaking to make Proposed Rules includes those entities that the addition, subsidiaries of an insured any loan or advance to or on behalf of Council designates as systemically important the subsidiary or affiliate; undertaking financial market utilities under 12 CFR part 1320. depository institution which are The Council’s rulemaking regarding financial supervised on a consolidated basis with to make capital contributions to the market utilities takes into consideration various the insured depository institution are subsidiary or affiliate; or being factors, which are directly or effectively the factors also proposed to be exempt for purposes contractually obligated to provide any referenced in section 210(c)(8)(H)(iv). See 12 CFR other financial assistance to the 1320.10. See also 76 FR 44763. In the third of consistency with the insured proposed prong of § 148.2(l)(3) of the Proposed depository institution exemption. subsidiary or affiliate. In some Rules, the stand-alone test of assets equal to or However, functionally regulated instances, ‘‘support’’ may itself greater than $50 billion is used because that size subsidiaries, security-based swap constitute a QFC.64 threshold, by itself, together with other aspects of dealers, and major security-based swap The terms ‘‘linked’’ and ‘‘guarantees, the definition of records entity is sufficient to supports’’ are also used to define the differentiate financial companies or their corporate participants are not supervised on a groups that might be subject to orderly liquidation consolidated basis with the parent financial companies that are records under Title II. The test in the fourth proposed prong insured depository institution and are entities under the Proposed Rules. A of § 148.2(l)(3) of the Proposed Rules includes a not already required to maintain records financial company that guarantees or requirement that the entity be a member of a supports open QFCs would be a records corporate group in which at least one financial under Part 371, as discussed above. company meets one of the first three prongs, thus These subsidiaries meet the definition entity, provided that the other taking the various factors into account. To the of financial company in Title II, and conditions of the definition are met, extent a general or specific exemption from the would be required to comply with the because its exposure is connected to the rules may be necessary or appropriate, it is exposure of the financial company that expected that the Secretary would consider these recordkeeping requirements of the rules factors in determining whether to grant an if they are ‘‘records entities.’’ Finally, a is the counterparty to the QFC. A exemption. financial company that controls only 60 63 12 U.S.C. 5365(a). insured depository institutions and is See 77 FR 63205 (October 16, 2012). 61 See Authority to Require Supervision and 64 See, e.g., section 210(c)(8)(D)(ii)(XII) (defining Regulation of Certain Nonbank Financial not itself a party to a QFC is also ‘‘securities contract’’ to include ‘‘any security Companies. 12 CFR part 1310. In adopting this proposed to be exempt for purposes of agreement or arrangement or other credit threshold, the Council noted that it is consistent consistency with the insured depository enhancement related to any agreement or with the Dodd-Frank Act threshold of $50 billion institution exemption. transaction referred to in this clause, including any in assets for subjecting bank holding companies to guarantee or reimbursement obligation in enhanced prudential standards. 77 FR 21637, connection with any agreement or transaction 21661. 62 12 U.S.C. 5381(a)(8)(B). referred to in this clause’’).

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financial company that is linked to an is appointed as receiver of an affiliated or regulatory reporting purposes. The open QFC would also be a records financial company. In connection with first two prongs of this definition are entity, provided that the other the transfers and notifications under consistent with the BHC Act definition. conditions of the definition are met, section 210(c)(9) and section 210(c)(10), The third prong reflects the fact that, in because its financial condition or other the FDIC will need the same certain situations, a controlling interest circumstances are connected to such information with respect to such QFCs may be achieved through arrangements counterparty. Moreover, the financial (including guaranteed or supported that do not involve voting interests,65 company providing support or a QFCs) of an affiliate as it does with and, unlike the BHC Act definition, guarantee is exposed, along with, respect to QFCs to which the financial provides an objective test that does not depending on the circumstances, its company was a party. require a determination by the Board. corporate group, to the risk of Affiliate, Subsidiary, and Control: The Non-U.S. Entities. Because the termination of QFCs. Therefore, the definitions of the terms ‘‘subsidiary’’ Proposed Rules would incorporate the Proposed Rules would require each and ‘‘affiliate’’ in the Proposed Rules are Title II definition of ‘‘financial records entity that guarantees or consistent with the definitions given to company,’’ the Proposed Rules apply supports QFCs to keep records with such terms in the Dodd-Frank Act. only to entities incorporated or respect to all such guaranteed or Section 2(18) of the Act provides that organized in the United States that are supported QFCs. The records entity that these terms will have the same considered records entities under the links its QFCs to another entity would meanings as in section 3 of the FDIA (12 Proposed Rules. For example, a U.K.- be responsible for keeping records U.S.C. 1813). Under the FDIA, the term incorporated London affiliate of a U.S. related to the specified financial ‘‘subsidiary’’ is broadly defined as ‘‘any broker-dealer would not be a records company which is owned or controlled condition clause. In each case, a records entity because it is a separate legal directly or indirectly by another entity would be responsible for entity that is not incorporated or company.’’ Similarly, the term obtaining from its affiliates all organized within the United States. ‘‘affiliate’’ is defined by reference to the information necessary to enable it to BHC Act, 12 U.S.C. 1841(k) as ‘‘any b. Records Entities Within a U.S. maintain these records. company that controls, is controlled by, Holding Company Including affiliated financial or is under common control with Figure 1 below illustrates how the companies as records entities under the another company.’’ definition of financial company affects Proposed Rules is necessary: (1) To The definition of ‘‘control’’ is whether various affiliates in a U.S. assist the FDIC in exercising its right to provided in the FDIA, which in turn, holding company corporate group enforce contracts of subsidiaries and refers to the definition provided in the would qualify under the Proposed Rules affiliates under section 210(c)(16), and BHC Act, 12 U.S.C. 1841(a). The as records entities based on the fulfilling its obligations under section Proposed Rules would define ‘‘control’’ application of the definition of financial 210(c)(9) and section 210(c)(10) with to include a company that directly or company in the Dodd-Frank Act and the respect to the timing and notification of indirectly or acting through one or more Proposed Rules. The holding company the transfer of any guarantee or other persons owns, controls, or has the and some affiliates would qualify as support and related assets and liabilities power to vote 25 percent or more of any records entities as shown below, while in connection with any agreement or class of voting securities of the the other affiliates would not. transaction referred to in any such QFC; company, controls in any manner the and (2) to assist the FDIC in fulfilling its election of a majority of the directors or 65 See, e.g., Financial Accounting Standards obligations under section 210(c)(9) and trustees of the company, or must Board, Statement of Financial Accounting section 210(c)(10) in the event the FDIC consolidate another entity for financial Standards No. 167 (2009).

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c. Clearing Organizations field that does not apply to a given QFC example, should the Secretary establish transaction or agreement. a different set of data elements, data The Proposed Rules would not Accordingly, the Secretary seeks format, or other general recordkeeping exclude from their scope any records requirements for clearing organizations entity that is a clearing organization comment on the following: (i) Whether the Proposed Rules should provide a and/or centrally cleared transactions? If with respect to derivatives cleared for different set of data requirements for yes, how should the format and the its members. As part of fulfilling its clearing organizations and/or for content of data fields listed in Tables 1– responsibilities, a clearing organization centrally cleared transactions; (ii) 4 of the Appendix in the Proposed Rules must keep, on a near real-time basis, whether such different data elements be modified for clearing organizations? thorough and well-organized records of should contain fields in addition to Which fields should be deleted, the contracts with each of its members. those included in Tables A–1 through modified, or replaced with other data The FDIC, as receiver for a clearing A–4 of the Appendix in the Proposed fields? Are there any data fields that organization under Title II, would have Rules, should exclude some of the fields should be added for clearing access to this information to analyze listed in Tables A–1 through A–4, or organizations and/or centrally cleared clearing organization positions. Taking some combination of the two; and (iii) transactions? into consideration a clearing whether any required data set should be Upon the written recommendation of organization’s functions and that its role maintained in a form or fashion the FDIC, prepared in consultation with is to interpose itself between different from the format contained in the primary financial regulatory counterparties to transactions, some of the Proposed Rules. The Secretary seeks agencies for the applicable records the data elements that would be comment on whether, and if so, how entities, the Secretary may also issue required by the Proposed Rules may not best to modify those data elements and exemptions of general applicability to be relevant for clearing organizations. general recordkeeping requirements set address the issues that are relevant to The Appendix to the Proposed Rules forth in the Proposed Rules with respect clearing organizations. In addition, the provides that a records entity may leave to clearing organizations and/or Secretary notes that for data elements an entry blank or insert N/A in a data centrally cleared transactions. For and recordkeeping requirements that

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may adversely affect a specific clearing (ii) a bank holding company or bank 60 days of becoming a records entity. A organization, rather than all clearing holding company subsidiary (that is not financial company that no longer organizations, the specific exemption an insured depository institution or qualifies as a records entity would be process set forth in the Proposed Rules other type of exempt entity); a savings permitted to cease maintaining records would be available. The decision to and loan holding company or a savings one year after it ceases to qualify as a grant such an exemption could be and loan holding company subsidiary records entity. This determination conditioned upon the ability of the (that is not an insured depository would be made on a rolling 12-month clearing organization to demonstrate institution or other type of exempt basis.68 The Secretary considered and ensure that appropriate records are entity); a U.S. affiliate of a foreign bank; periods ranging from six months to kept. a noninsured state member bank; an eighteen months, but after consultation agency or commercial lending company with the FDIC, chose to maintain a d. Scope of Proposed Rules other than a federal agency; any parallel with the FDIC’s Part 371 The ‘‘scope’’ subsection of the organization organized and operated Recordkeeping rules. Proposed Rules provides that the rules under section 25A of the Federal If during the one-year period such apply to each entity that qualifies as a Reserve Act or operating under section financial company becomes subject to records entity. Section 210(c)(8)(H) of 25 of the Federal Reserve Act; (iii) any the rules again, even for a short period the Dodd-Frank Act gives the Secretary entity that the Council has determined of time, the one-year period would be broad flexibility in determining the to be either (A) a nonbank financial re-calculated from that later time. A scope of the recordkeeping requirements company that could pose a threat to the financial company that becomes subject based on factors that are deemed financial stability of the United States to the rules again after it had ceased necessary or appropriate in order to pursuant to 12 U.S.C. 5323 or (B) a recordkeeping would be required to assist the FDIC as a receiver for a financial market utility that is, or is comply with the requirements of the covered financial company in being able likely to become, systemically important rule within 90 days. The Proposed Rules to exercise its rights and fulfill its pursuant to 12 U.S.C. 5463; (iv) specify that the 90-day period obligations under section 210(c)(8), (9) subsidiaries of State non-member commences on the date a financial or (10) of the Dodd-Frank Act. Section insured banks that are not supervised on company becomes subject to these rules 210(c)(8)(H) also requires the a consolidated basis with the State non- as a records entity. regulations to differentiate among member insured bank, or financial Questions: financial companies, as appropriate, by companies that are not supervised by a 1. Is the scope of the Proposed Rules taking into consideration their size, risk, PFRA. adequate? Should additional entities be complexity, leverage, frequency and 2. Purpose subject to the rule? Please provide dollar amount of QFCs, and specific details supporting these views. interconnectedness to the financial Section 148.1(b) of the Proposed 2. Is the initial compliance date of 270 system and any other factors deemed Rules provides that the purpose of the days adequate? If it is too long, please appropriate. As discussed earlier, the rules is to establish QFC recordkeeping explain how records entities would be Secretary has complied with these requirements for a records entity in able to meet a shorter initial compliance requirements. order to assist the FDIC as receiver for date? If it is too short, please explain The Secretary anticipates that records a covered financial company. why a longer period would be necessary entities would include the following 3. Effective Date and Compliance Dates to comply with the rule. types of financial companies (i) broker- Section 148.1(c) of the Proposed Rules 3. Is the rolling 12-month baseline for dealers, investment advisers, investment provides that the rule would become a financial company to cease being a companies,66 security-based swap effective 60 days after publication of the records entity adequate? Please provide dealers, security-based swap final rule in the Federal Register. specific details if it is inadequate. Is the participants, and clearing agencies; 67 Section 148.1(d) of the Proposed Rules subsequent compliance date of 90 days provides that each entity that adequate? Please provide specific 66 Each individual series of a registered constitutes a records entity on the date details if it is inadequate. investment company offering multiple series would 4. Should each affiliate of a corporate be deemed to be a separate financial company for the final rule becomes effective would purposes of these rules. See Investment Company be required to comply with the rule not group that meets the records entity Act Release No. 7276 (Aug. 8, 1972) published at later than the 270th day after the date definition under section 148.2(l)(3)(iv) 37 FR 17384 (Aug. 26, 1972) (‘‘The individual series on which the final rule becomes of the Proposed Rules be required to of such a [registered open-end investment] maintain records, or should the parent company are, for all practical purposes, separate effective. For a records entity that investment companies. Each series of stock becomes subject to the rule after it company aggregate records for all open represents a different group of stockholders with an becomes effective, compliance would be QFCs that any such affiliate in the interest in a segregated portfolio of securities.’’). required 270 days after such entity consolidated corporate group is a party 67 Not all of these entities would qualify as to or guarantees, supports, or is linked? records entities subject to the Proposed Rules becomes subject to the rule. In addition, because of conditions in the definition of records section 148.1(d) of the Proposed Rules Should there be one recordkeeping entity related to asset size, systemic importance and cross-references section 148.3(a)(3) of requirement for an entire corporate QFC activity. ‘‘Financial company’’ includes any the Proposed Rules and would require group by the top tier holding company? company that is incorporated or organized under Are there any barriers to the parent any provision of federal law or the laws of any state a financial company that is a records and is predominantly engaged in activities that the entity on the effective date of the final company obtaining the necessary Board of Governors has determined are financial in rule to provide to each of its PFRAs and information from such subsidiaries and nature for purposes of section 4(k) of the Bank the FDIC a point of contact responsible affiliates? Should the parent company Holding Company Act of 1956. 12 U.S.C. be required to maintain records for the 5381(a)(11). Activities that are ‘‘financial in nature’’ for recordkeeping under the rule on the include ‘‘providing financial, investment, or effective date of the rule. A financial QFCs at its foreign subsidiaries and economic advisory services, including advising an company that becomes a records entity investment company’’ and ‘‘issuing or selling 68 For the rolling 12-month period, a financial instruments representing interests in pools of assets after the effective date would be company’s total consolidated assets are calculated . . .’’ and ‘‘underwriting, dealing in, or making a required to provide a point of contact to based on the most recent financial statements from market in securities.’’ 12 U.S.C. 1843(k)(4). each of its PFRAs and the FDIC within the prior fiscal year-end.

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affiliates? Would such a definition, in neutral to, or interfere with, the FDIC’s 14. Should financial companies that which only the parent company in a ability to resolve a QFC portfolio. Please guarantee or support QFC positions be corporate group is a records entity, provide specific details on the relevance required to maintain records on such make compliance more or less of such criteria toward the orderly QFCs if such QFCs qualify for treatment burdensome? Are the recordkeeping liquidation authority goal of reducing under section 210(c)(16)? If not, how requirements in the Proposed Rules an systemic risk. would the recordkeeping of such QFCs effective means of assisting the FDIC as 9. Should the Secretary further be handled? receiver of a covered financial company differentiate among financial companies 15. Should there be any additional to exercise its rights and fulfill its or their corporate groups by their size, data to avoid duplication of records of obligations under section 210(c)(8), (9), risk, complexity, leverage, frequency guaranteed, supported or linked QFCs if or (10) of the Dodd-Frank Act? If not, and dollar amount of QFCs, or the related affiliate also is a records how could the Proposed Rules be more interconnectedness to the financial entity and maintains records with effective to assist the FDIC? system? Should any other factors be respect to such QFCs? 5. Should a records entity also be considered? Should the Secretary adopt 16. Is the criterion in the definition of required to maintain records with different criteria? Please provide records entity in section 148.2(l)(3)(iii) respect to QFCs of affiliates that are specific details on any factors to be of the Proposed Rules appropriate? linked to such entity? Should such considered or criteria proposed, Should the calculation of $50 billion in records entity be responsible for including an explanation on why such total assets exclude non-proprietary obtaining from its affiliates or factors would help, be neutral to, or assets that are included on a balance subsidiaries all information necessary to interfere with, the FDIC’s ability to sheet under accounting rules, such as enable such records entity to maintain resolve a QFC portfolio. certain types of client assets under records with respect to QFCs of affiliates 10. Should the Secretary have management required to be included on that are linked to it? Is there a different considered the factors referenced in an investment adviser’s balance sheet? way the FDIC could obtain information section 210(c)(8)(H)(iv) in a different Is it appropriate for some financial about linked QFCs? Would the way than discussed above? Should the companies or corporate groups with less information provided in Table A–3 to Secretary not rely on the Council’s than $50 billion in total assets to not be the Appendix be sufficient to identify designations? If so, how should the required to maintain records? such linkages? How would such Secretary consider those factors? Should 17. On what basis should investment recordkeeping be handled if the affiliate any other factors be considered? advisers that are to be included as is not a financial company or is an 11. Is the scope of the Proposed Rules records entities be identified? Should exempt entity? sufficiently clear with respect to the advisers be required to file fiscal 6. Would the current definitions subsidiaries of insured depository year-end balance sheets and should provide for adequate recordkeeping for institutions? If not, how should the their status as records entities be based QFCs at foreign affiliates of U.S. records scope of the Proposed Rules be on information contained in these entities (recognizing that such foreign clarified? Should all subsidiaries of balance sheets? affiliates would not be records entities)? insured depository institutions be 18. Are there any other entities for If not, should the record maintenance included in the scope of the Proposed which the rules need not apply? If so, requirements be altered? Rules? which entities, and why? 7. Is the scope of the definition of 12. Is it appropriate to include 19. Should swap dealers and major ‘‘exempt entity’’ adequate? What affiliates and other entities that might swap participants be required to changes, if any, should be made to the not be designated as systemically maintain records under the rules definition of ‘‘exempt entity?’’ Are there important, or that might not have total irrespective of the size and other other entities that should be included in assets equal to or greater than $50 requirements of the definition of records the definition of ‘‘exempt entity’’? Are billion, within the scope of the entity? there entities that should be excluded Proposed Rules? If not, how should the 20. Is the inclusion in the Proposed from the definition of ‘‘exempt entity’’? scope of the Proposed Rules be Rules of clearing organizations or other Should the rules exempt other entities narrowed? For example, should financial market utilities that are based on the number of QFC affiliates be included only if they designated as systemically important counterparties, QFC notional amounts, themselves are designated as appropriate? What issues should the QFC mark-to-market values as of a systemically important or have total Secretary consider when addressing particular date, or some other criteria? If assets equal to or greater than $50 recordkeeping requirements with so, at what levels should such billion? How would this affect the respect to clearing organizations or exemptions be set? Please provide any FDIC’s ability to exercise its rights other financial market utilities? What data or other analyses that support this under the Act and fulfill its obligations records do clearing organizations view. Should there be any other form of under section 210(c)(8), (9), or (10), as currently maintain for QFCs? Are they de minimis exemption? receiver? Conversely, should the scope different from the records required in 8. Should the rules provide additional of the Proposed Rules regarding the Appendix to the Proposed Rules? categorization or tiering of financial affiliates be broadened? Are there any Are they different from those companies based on other criteria? What affiliates that would not fall within the maintained by counterparties in should such other criteria be? Would scope of the Proposed Rules that bilateral QFC transactions? If so, should financial company or QFC portfolio should? If so, why? a different framework for QFC records leverage be relevant? Should the dollar 13. Does the definition of ‘‘control’’ be considered for clearing organizations amount of the QFC portfolio or the adequately capture those entities that than for other records entities? Should frequency of trading be used to should be defined as affiliates for a different set of data requirements be differentiate among financial purposes of the rules? Should the considered for clearing organizations? companies? Please provide specific definition of ‘‘control’’ be modified and, Should such different data set contain explanations of how such criteria would if so, how? For example, should the fields in addition to those included in be applied together with an explanation definition be the same as the definition Tables A–1 through A–4 of the of whether such criteria would help, be of ‘‘control’’ under the BHC Act? Appendix, exclude some of the fields

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listed in Tables A–1 through A–4 of the corporate group includes more than one of such counterparty identifiers would Appendix, or some combination of the records entity, for each inter-affiliate enable the data to be aggregated by two? Should any required data be QFC to which two or more affiliated counterparty, thus permitting the FDIC provided in a form or fashion different records entities are a party (or are to understand the exposure of the entire from the format contained in the otherwise linked), each affiliate would corporate group to a given counterparty. Proposed Rules? be required to treat the other as a The FDIC will use the aggregation of 21. Should the recordkeeping counterparty for purposes of the rules. counterparty positions to determine the requirements for centrally-cleared Recordkeeping with respect to inter- effects of termination or transfer of transactions differ from those for non- affiliate QFCs is necessary to enable the QFCs. Although the Proposed Rules centrally-cleared transactions? If so, FDIC to decide as quickly as possible specify a recordkeeping format, the should such requirements include data which affiliated financial companies in Secretary recognizes the need to build- fields in addition to those included in a corporate group should be subject to in flexibility for an alternate Tables A–1 through A–4 of the orderly liquidation under Title II, to recordkeeping format. Therefore, Appendix, exclude some of the fields understand all QFC linkages in a Section 148.3(c) of the Proposed Rules listed in Tables A–1 through A–4 of the corporate group, and to evaluate the provides that the Secretary may grant Appendix, or some combination of the potential systemic effects of FDIC conditional or unconditional two? decisions. exemptions from compliance with one 22. Are there special considerations The term ‘‘primary financial or more of the requirements of the rule. regarding a clearing organization regulatory agency’’ would consist of the An exemption with regard to the resolution that should be reflected in Federal banking agencies, the CFTC, recordkeeping format requirements the rule? In particular, what records of FHFA and the SEC and would be could be conditioned upon the records a clearing organization would be useful defined by reference to the definition of entity keeping the records in an to the FDIC as receiver? Is this different ‘‘primary financial regulatory agency’’ alternate format that enables the FDIC to from the records that are needed for the in the Dodd–Frank Act.70 exercise its rights under the Act and resolution of other types of financial Questions: fulfill its obligations under section companies under Title II? If so, how 25. Should the proposed definition of 210(c)(8), (9), or (10) of the Act. should recordkeeping requirements be counterparty be modified to exclude Section 148.3(a)(1) of the Proposed modified to address appropriately a some affiliated entities? If so, which Rules would require that all records be clearing organization or other financial affiliated entities should be excluded capable of being transmitted market utility resolution? and why? electronically to a records entity’s PFRA 23. Is it appropriate, if a registered 26. Would the proposed definitions and the FDIC. This requirement would investment company has multiple result in duplication of data or impose a recordkeeping burden but not series, to deem each series of the positions? If so, how could such a reporting burden on records entities. company to be a separate financial duplication be removed? In order to comply with the rule, a company for purposes of the rules? If 27. Is there an alternative means of records entity would need to ensure that not, why not? introducing transparency for inter- it is able to comply with the 24. Should the rules apply to an recordkeeping requirements of the rules investment adviser acting as agent for its affiliate transactions other than including affiliates in the definition of for all cross-border transactions. client with respect to a QFC if the These proposed requirements are adviser otherwise is not a party to, does counterparty? How would the recordkeeping requirements need to be necessary and appropriate in order to not support, does not guarantee, or is assist the FDIC as receiver. not linked to the client’s QFC? modified to accomplish this goal? 28. Should other terms used in the Transparency with respect to all QFC B. General Definitions Proposed Rules be defined? If so which positions is necessary to enable the FDIC as receiver to rapidly dispose of ones? Please include support for any In addition to the definitions the QFC portfolio or perform on the suggested definition or clarification to described in detail above in reference to QFCs and minimize the potential for definitions supplied. the scope of the Proposed Rules, certain disorderly liquidation of the covered 29. Are the Proposed Rules’ additional terms are defined in the financial company and increased definitions appropriate? Would there be Proposed Rules to describe a records systemic risk. Accordingly, the FDIC any additional definitions, entity’s recordkeeping obligations. The should have detailed and complete modifications or considerations that term ‘‘counterparty’’ would be defined information available to it with respect would be helpful? as any natural person or entity (or to all QFCs of a records entity and its separate non-U.S. branch of any C. Form, Availability, and Maintenance affiliated financial companies, without 69 entity) that is a party to a QFC with of Records delay, on the date of appointment. As a records entity. An affiliate or a non- discussed above, given the short time U.S. branch of such records entity that 1. Form and Availability frame for FDIC decisions, it may be is not itself a records entity would be Section 148.3(a)(1) of the Proposed difficult to obtain and analyze a large considered a counterparty of a records Rules would require that a records amount of information unless it is entity if it is a party to a QFC with such entity maintain all records in electronic readily available to the FDIC in an affiliated records entity. The term form in the format set forth in the updated and standardized format that ‘‘counterparty’’ would also include any Appendix to the Proposed Rules. All enables the FDIC to carry out the natural person or entity that is a party records entities in a corporate group required financial and legal analysis in to a QFC that is guaranteed or supported would be required to be able to generate an expeditious and efficient manner. by a records entity. To the extent a data in the same data format and use the Furthermore, absent electronic access to same counterparty identifiers to enable the complete records of a records entity 69 The term non-U.S. branch is used to designate the aggregation of all records entities in and the ability to view such information a U.S. entity that operates in a non-U.S. jurisdiction under special license in such jurisdictions instead the corporate group. In addition, the use in the context of the records entity’s of operating through a subsidiary incorporated or booking practices, governing law, and organized in such non-U.S. jurisdiction. 70 12 U.S.C. 5301(12). organizational structure, the FDIC may

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not be able to analyze QFC positions entities. A PFRA could exercise its own are unable to get such consents? Are and make decisions with respect to such authority by imposing a 24 hour there any alternatives to the Proposed QFCs by the end of the first business reporting requirement on a records Rules that would allow the records day following the appointment of the entity for the QFC records maintained entity to maintain the records and have receiver. In addition, the FDIC could use under the rule, and by sharing such the capability to provide the data to its the data to help subsidiaries of a records with the FDIC. The Secretary PFRA? financial company in receivership recognizes that many financial 35. Should the chief compliance perform their obligations under the companies may not currently have the officer for registered investment QFCs, thereby preserving the value of capability to provide all QFC records in advisers and the officers of registered the receivership estate. This should help the required format within a 24-hour investment companies be deemed to be to prevent the disorderly termination of time period. Nevertheless, because of the point of contact under the rules? If trades, including cross-border and timing constraints set forth in Title II, not, who should the point of contact be affiliate trades, which could have far- the FDIC must become familiar with the for each of these entities? reaching negative effects on the records types and formats of QFC data 36. The Proposed Rules currently entity and its corporate group, as well maintained by records entities to be able contemplate requiring a records entity as the broader financial markets. to comply with the statutory deadlines that is regulated by a PFRA to be Section 148.3(a)(2) of the Proposed upon receivership and to be able to capable of providing to such PFRA, Rules would require that each records exercise its rights under the Act. In within 24 hours of request, the required entity maintain records for all QFCs to addition, the records entity must be able records. The records entity must also be which it is a party, including inter- to generate the records in the formats capable of transmitting electronically affiliate QFCs to which it is a party. specified in the rules quickly, generally the required records to such PFRA and Each records entity also would be overnight, to refresh the information the FDIC. Should the rule provide for required to maintain records for all provided to regulators. These formats or the PFRAs to make actual requests? If QFCs that are guaranteed or supported records may also be used by the FDIC so, should anyone other than the PFRA by such records entity.71 These records both to refine receivership processes (e.g., the FDIC) also have the ability to would help to enable the FDIC as with respect to the evaluation of QFCs request records? Should the records receiver to determine the effect of of financial companies and their entity be required to provide their termination or transfer of counterparty corporate groups, and to familiarize records directly to the FDIC rather than transactions on the QFC portfolio held itself with the QFCs of the records only to the PFRA? Is 24 hours sufficient by affiliates as well as any potential entities in a given corporate group. effects on broader financial markets, Questions: time to produce the records? such as by inadvertently un-hedging one 30. Are the proposed requirements 2. Maintenance and Updating or more affiliated counterparties. that records entities in a corporate group However, a records entity that is only be able to maintain the records in the Section 148.3(b) of the Proposed linked to an open QFC would not be same data format and use the same Rules would require that each records required to maintain records under the counterparty identifiers to enable the entity maintain the capacity to produce Proposed Rules with respect to such aggregation of the data across all records QFC records on a daily basis based on linked QFCs. entities in the corporate group or by previous end-of-day records and values. Section 148.3(a)(3) of the Proposed counterparty reasonable? This provision would not require that Rules would require that each records 31. Are there any other procedures the records entity update all values entity provide a point of contact to that should be addressed by the rules daily in the ordinary course of business. enable its PFRA and the FDIC to contact which may help streamline data Rather, it would require that the records the records entity with respect to the production? For example, some records entity have the capacity to do so upon rule, and to update this information entities may have a very large volume of request. Some data elements set forth in within 30 days of any change. Because QFC records. Could this raise practical Tables A–1 through A–4 of the the FDIC, after being appointed as considerations in the electronic Appendix may not generally be updated receiver, will have very little time to transmission of such records? daily. However, since all data items update QFC information and make 32. Are there particular methods that must be updated to enable the FDIC as decisions with respect to QFCs, the would best address record maintenance receiver to exercise its rights under the FDIC must work cooperatively with and data requirements for inter-affiliate Act and fulfill its obligations under personnel in charge of QFCs at each transactions and cross-border sections 210(c)(8), (9), or (10) within the records entity who can provide greater transactions? Should there be specific limited time frame afforded by the Act, context for the data, including the requirements for such transactions? each records entity would need to records entity’s booking practices, Should records entities be exempted maintain the capacity to update the data governing law, and organizational from any part of the recordkeeping elements to current values within a 24- structure. requirements in the Proposed Rules for hour period. To the extent the electronic Section 148.3(a)(4) of the Proposed such transactions? recordkeeping system produces data Rules would require that each records 33. Should the Proposed Rules set that is more current than previous end- entity that is regulated by a PFRA be forth a standard data specification that of-day records and values (e.g., real-time capable of providing all QFC records would require common data structures data), such data would also comply with specified in the rules to its PFRA within and content for data submitted for each the Proposed Rules. If a records entity 24 hours of request. This requirement corporate group? is not able to update the records or would impose a recordkeeping burden 34. What types of consents, if any, values quickly, the FDIC may not be but not a reporting burden on records would a records entity need to obtain able to comply with the requirements of from counterparties outside of the Title II with respect to QFCs. As 71 An entity, such as an investment adviser, that United States in order to comply with mentioned above, this inability of a acts as agent on behalf of a client would not be the recordkeeping requirements in the records entity could increase the required to maintain records for any QFC to which the adviser is not a party or that the adviser does Proposed Rules? Would records entities potential for a disorderly liquidation of not support or guarantee. be able to comply with the rules if they a financial company.

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When a records entity uses an affiliate more of the requirements of the rules. other factors deemed appropriate, which or a third party to maintain the records For example, if a records entity is a the Secretary believes should include required under the Proposed Rules, it subsidiary of a national bank, but is also whether the application of one or more would be the responsibility of the registered as a major swap participant requirements of the Proposed Rules is records entity to ensure that records and a major security-based swap not necessary to achieve the purpose of maintained by the affiliate or third party participant, the FDIC, in consultation the rule. As noted previously, in can be provided to the PFRA within 24 with the OCC, SEC and CFTC, could determining whether to grant any hours of a request. recommend that the Secretary issue an exemptions permitted under the rule, Each records entity also would be exemption because the OCC is the the Secretary expects to take into required to be able to generate historical primary banking regulator while the consideration with respect to financial end-of-day records of open QFC SEC and the CFTC have oversight companies their size, risk, complexity, positions, and any other QFC positions authority over the entity by virtue of it leverage, frequency and dollar amount needed to generate data based on end- being a major swap participant and a of QFCs, interconnectedness to the of-day records and values, for a period major security-based swap participant. financial system, and any other factors of at least the preceding five business As another example, if a records entity deemed necessary or appropriate, days. Historical data are important as a is a financial company that does not including whether the application of measure of the day-to-day volatility of collect certain types of QFC one or more requirements of the rule is the given positions, and such data may recordkeeping data in the ordinary not necessary to achieve the purpose of help the FDIC calculate portfolio values course of its business, the FDIC, in the rule.72 on the business day after the consultation with the relevant PFRAs, Moreover, some records entities are appointment of the receiver. could recommend that the Secretary subject to separate recordkeeping rules With respect to record retention, the issue a specific exemption from certain promulgated by the CFTC and SEC and proposed requirement for a records data requirements of the rules, if the may in the future be subject to entity to maintain records would FDIC believes such data omissions are additional recordkeeping requirements generally apply to records and values warranted under the particular promulgated by other U.S. and non-U.S. with respect to open QFC positions and circumstances. agencies. The exemption provisions set any other QFC positions needed to The Secretary would also be forth in the Proposed Rules are designed generate information based on end-of- permitted to issue exemptions that have to enable the rules to work in day records and values for at least the general applicability upon receipt of a conjunction with the CFTC’s, SEC’s and five business days prior to the date of a recommendation from the FDIC, in other regulatory recordkeeping request. consultation with the PFRAs for the requirements as well as any global or Questions: applicable records entities. For example, local standard adopted after the 37. Are the record maintenance the FDIC, in consultation with the publication of the final rule, as they requirements of the Proposed Rules PFRAs, could recommend that the would provide the ability for the sufficiently clear? If not, what Secretary issue an exemption informing Secretary to be flexible in taking such additional requirements should be all records entities that some data requirements and standards into adopted? elements required by Tables A–1 account. Although section 148.3(a)(1) of 38. Is the five-day retention period for through A–4 of the Appendix are not the Proposed Rules specify a standard required historical data sufficient? If a relevant for a particular type of QFC. format for recordkeeping, the Secretary, different period would be more The Secretary considered authorizing upon receipt of a recommendation from appropriate, please provide support for the FDIC and the PFRAs to jointly grant the FDIC made in consultation with the your recommendation. specific and general exemptions, appropriate PFRAs, could exempt 39. In the case of records entities that because the PFRAs are familiar with the records entities from this requirement use affiliates or third-party service operations of the records entities, and on the condition that they maintain providers to maintain their records, is it because the FDIC as the intended user electronic records maintained in a swap appropriate for the records entity to be of the QFC recordkeeping would be data repository or internally in a responsible for providing the records affected by the granting of any different format. The format of proposed within 24 hours of a request, rather than exemption. However, the Act does not Tables A–1 through A–4 of the the affiliate or third-party service appear to authorize the Secretary, as Appendix therefore, should not provider? Chairperson of the Council, to sub- complicate appropriate recordkeeping, 40. Should the records be retained for delegate decision making authority to so long as the information set forth in a period shorter or longer than that set other agencies. Instead, the Secretary is the Appendix can be provided to the forth in the Proposed Rules based on the turning directly to the FDIC and FDIC in a manner that allows the FDIC status of an open QFC? What are the indirectly to the PFRAs for to properly analyze and aggregate the potential benefits or costs of a shorter or recommendations on whether to grant data. Records entities could build upon longer period for record retention? specific or general exemptions. The the mandatory data templates of the Secretary will consider any FDIC swap data repositories and augment 3. Exemptions recommendation that carefully and/or hyperlink the data to create the Section 148.3(c) of the Proposed Rules considers the factors contained in totality of the information requested. A would permit the Secretary to grant two section 210(c)(8)(H)(iv) of the Act. records entity could also help the FDIC, types of exemptions from the rules. Any Section 210(c)(8)(H) of the Dodd- upon appointment as receiver, analyze exemptions granted pursuant to the Frank Act gives the Secretary broad internal databases by providing the rules may be subject to conditions. The flexibility in determining the scope of personnel necessary to manipulate Proposed Rules provide that, upon the records entities based on, as internal databases. Because the PFRA written request by a records entity, the appropriate, the financial companies’ for a records entity and the FDIC must FDIC, in consultation with the PFRAs size, risk, complexity, leverage, work with and understand the data, a for the records entity, may recommend frequency, and dollar amount of QFCs records entity would need an exemption that the Secretary grant a specific and interconnectedness to the financial exemption from compliance with one or system. The Secretary also may consider 72 See supra note 59.

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from the Secretary (which could be 46. Should the final rule exempt FDIC’s Part 371 QFC Recordkeeping conditioned on the use of an alternative categories of financial companies? If so, rules, and to provide an easy means of recordkeeping format) before using a which categories should be exempted separating the data into their relevant recordkeeping format that is different and why? Alternatively, should the final categories. As stated below, the from the format referenced in section rule exempt certain categories of Appendix corresponds to position level 148.3(a)(1) of the Proposed Rules. financial companies only from certain data, counterparty exposure data, legal The Proposed Rules also would provisions of the rules but require them agreement data, and collateral data. empower the Secretary, in consultation to comply with others? Please specify Where appropriate, each table in the with the FDIC, to grant extensions of the conditions and factors to be appendix also gives an example of each time with respect to compliance with considered for each such exemption. data element and describes the the recordkeeping requirements. It is 47. Should clearing organizations or relevance of such data in the context of anticipated that such extensions of time other financial market utilities be an FDIC receivership. would apply when records entities first exempted from recordkeeping under the For the purpose of QFC become subject to the rules and likely rule? Please explain in detail why recordkeeping, each records entity would not be used to lengthen the time current recordkeeping requirements for would be required to treat its affiliates, periods specified in the maintenance clearing organizations and other including affiliated clearing and updating requirements of the rules. financial market utilities are sufficient organizations or other financial market Extensions of time may also be to enable the FDIC to conduct the utilities, as third-party counterparties appropriate on a limited basis with orderly liquidation of clearing and maintain complete records of all respect to being capable of providing organizations or financial market inter-affiliate QFCs. The Proposed Rules full records because of unforeseen utilities. would require a records entity to use a technical issues. 48. What conditions, if any, should be unique counterparty identifier to Questions: included in a clearing organization identify each of its counterparties. The 41. Is the scope of the exemptions exemption? Should it suffice that a records entity would be required to appropriate as written? clearing organization coordinates with assign a separate unique counterparty identifier to each legal entity and each 42. The Proposed Rules would allow its members that are records entities to non-U.S. branch or office of a legal the Secretary, upon receipt of a written ensure that appropriate records are entity that transacts business as a recommendation from the FDIC, to issue kept? separate branch or division to enable the general or specific exemptions based on 49. Is it feasible for data to be FDIC to analyze cross-border QFC factors the Secretary determines to be maintained in a standardized format? activity. The unique counterparty necessary or appropriate. Is the Should specific format exemptions be identifier also would facilitate the prerequisite of an FDIC included in the final rule, in particular aggregation of positions by counterparty recommendation appropriate? For for formats used by common QFC as well as the aggregation by corporate example, in the case of a records entity reporting repositories (e.g., swap data group. The ability of records entities to request for a specific exemption, should repositories)? To the extent such other recordkeeping requirements do not meet incorporate unique identifiers for each the Secretary proceed in determining counterparty is likely to vary whether to grant or deny the request if the full requirements contemplated here (e.g., they do not include certain significantly depending on the number the FDIC does not submit its and types of counterparties, and if the recommendation within a reasonable categories or fields necessary), how would records entities meet the counterparties are currently identified period of time? If yes, should the FDIC and tracked within the records entity’s and/or the PFRAs be consulted in some contemplated recordkeeping requirement? In such a case, would a systems. other manner? Is the FDIC’s Authorities from around the world, format exemption reduce regulatory consultation with the relevant PFRAs in including the FDIC, have established a preparing the written recommendation burden? 50. Should the provisions addressing global legal entity identifier (‘‘LEI’’) appropriate? If not, should the relevant system, with oversight effected by a form and availability of data be further PFRA be involved in some other Regulatory Oversight Committee manner? For example, should a detailed? 51. Should the rule specify a process (‘‘ROC’’), comprised of those same recommendation be made jointly by the authorities, in order to coordinate and for requesting exemptions and FDIC and the relevant PFRA, or should oversee a global system of legal entity extensions of time? If so, what should they each submit separate identification. In June 2014, a Swiss this process be? recommendations to the Secretary? Are non-profit foundation (the ‘‘Global LEI the factors the FDIC would be required D. Content of Records Foundation’’) was established with the to consider in making its intention for it to provide operational 1. General Information recommendation appropriate? governance and management over Local 43. Should the Secretary delegate Section 148.4(a) of the Proposed Rules Operating Units (‘‘LOUs’’) that will decision making authority to the FDIC, would require each records entity to issue LEIs. the PFRAs, or both with regard to maintain all data required by Tables A– Before the Global LEI Foundation was granting general or specific exemptions 1 through A–4 of the Appendix, as well established, the ROC created an interim and extensions of time? If so, please as additional information that is needed system by which those with pre-LEIs explain the authority by which the to be able to understand affiliated (LEIs compliant with various ROC Secretary could make such a delegation. relationships among records entities and principles) issued by ROC-endorsed 44. How should the PFRAs’ separate counterparties. Records entities may LOUs would be sufficient to satisfy the rulemaking and exemptive authority be currently maintain such data; however, regulatory requirements of ROC member used in conjunction with exemptions they might not be maintaining it in the authorities. under this rulemaking? manner or format in the Proposed Rules. As a result, unique LEIs were already 45. What is the volume and nature of By presenting the data elements in the being issued prior to the operational exemption requests that commenters form of an Appendix, the Secretary has governance and management of the believe are likely to be requested? sought to maintain a parallel with the system by the Global LEI Foundation

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and such LEIs are being accepted by The Proposed Rules would require FDIC to use the QFC data for the certain individual ROC members, that each records entity also maintain a purposes described in the rule? including for purposes of meeting list of vendors directly supporting the 2. Appendix Information certain other recordkeeping and QFC-related activities and the contact reporting requirements mandated by the information for such vendors. Section As described previously, the Proposed Dodd-Frank Act. The Proposed Rules 148.4(a) of the Proposed Rules would Rules would organize the detailed QFC would require records entities to use also require that each records entity recordkeeping requirements into an LEIs issued by LOUs endorsed by the maintain certain additional information appendix of four tables: (1) Position- ROC, and by those LOUs endorsed or with respect to its current QFC level data set forth in Table A–1; (2) otherwise governed by the Global LEI portfolio, including information about counterparty collateral data set forth in Foundation. the risk metrics used to monitor the Table A–2; (3) legal agreements related To the extent that the LEI or pre-LEI QFC portfolios and contact information data set forth in Table A–3; and (4) does not allow branches to be separately for each risk manager. The maintenance collateral detail data set forth Table A– identified, the records entity would be of such information would enable the 4. The information that would be required to include additional FDIC to contact a risk manager or required by Tables A–1 through A–4 is identifiers to enable the FDIC to vendor quickly in the event that the largely self-explanatory and contains segment the QFC activity both across FDIC requires additional information examples as well as narrative the corporate group and by jurisdiction, that is not currently included among the explanations of the applications. Some as treatment of a QFC varies based on required data. Furthermore, maintaining of the data fields, such as the unique the law governing the QFC and/or the risk manager contact information and a counterparty identifiers for the records entity and the counterparty, are used in location of the collateral. vendor list is unlikely to be overly each table to help link the data among To that end, financial companies burdensome because most financial companies are likely to already the tables. would need to maintain the capacity to The Appendix specifies that a records maintain similar information in the generate QFC information in a common entity may leave an entry blank, or may ordinary course of business. data format, at a minimum, within each insert ‘‘N/A’’ for any data fields that do Questions: corporate group, and, ideally, among not apply to a given QFC transaction or 52. Are the proposed requirements financial companies. To facilitate the agreement. For example, if a QFC is not related to unique counterparty resolution of QFC portfolios, the FDIC guaranteed, data fields that relate to a identifiers sufficient to enable needs to analyze such data upon guarantee agreement would not need to compliance with the rules? appointment as receiver under Title II be filled in, so long as those guarantee- by working collaboratively with the 53. Is it necessary or appropriate for related fields that required a Y/N (‘‘Yes/ PFRAs. The standardized data format a records entity to maintain full-text No’’) answer are completed where would reduce the time and effort searchable electronic copies of all appropriate. Similarly, if QFCs with a needed by the FDIC to perform the agreements governing QFC transactions? counterparty are not collateralized, analysis and facilitate comparison of If not, are there any viable alternatives there would be no need to maintain QFC data across financial companies to this? collateral information with respect to with large complex QFC portfolios. 54. Is it necessary or appropriate for that counterparty. A records entity also would be a records entity to maintain risk metrics required to maintain electronic copies of used to monitor the QFC portfolio, risk a. Table A–1 all agreements that govern the QFC manager contact information, and a list Table A–1 would set forth position- transactions, as well as credit support of vendors that directly support the QFC level data that enable the FDIC to documents related to such QFC related activities of the records entity? If evaluate a records entity’s exposure to transactions. As noted previously, not, are there any viable alternatives to its counterparties. The FDIC would also electronic records are necessary or this? use these data to evaluate the effects of appropriate to assist the FDIC as 55. Should the rule include additional the receiver’s determination to transfer, receiver to quickly analyze QFC guidance with respect to form, content disaffirm or repudiate, or retain QFCs. positions and make prompt decisions and format of the records required? If so, In addition, position-level information with respect to such QFCs, and to how? would assist the receiver or any minimize the potential for disorderly 56. Should the rule specify a data transferee to comply with the terms of liquidation of the covered financial standard (or language, or specification, the QFCs and reduce the likelihood of company and increased systemic risk. e.g., XML or XBRL) and a standard set inadvertent defaults. For example, a These copies would need to be (e.g., a schema or taxonomy) of data unique position identifier would allow maintained in full-text searchable item tags? Should the rule specify for the tracking and separation of electronic form, and would be required further the definitions which the positions maintained by the records to include master agreements and records entity must use for its QFC entity, and the identifier also would be annexes, confirmations, master netting records data? Please provide detailed consistent with the CFTC- and SEC- agreements, credit support annexes, specifications of the data standard or mandated data that need to be reported guarantees, net worth maintenance standard set as well as of the proposed to SDRs.73 The information would also agreements, security interest definitions, if any. be required to include CUSIP identifier agreements, and other related 57. Should data elements be numbers, unique trade confirmation agreements, if any. Similarly, the interoperable among affiliated records numbers, as well as other internal Proposed Rules would require records entities and among financial company identifying information relevant to the entities to keep full-text searchable groups? If so, discuss which standard(s) position. copies of all assignment or novation should be considered, and why? If the The unique booking unit or desk documents to enable the FDIC to rule should not include such a identifier is intended to serve to further determine the appropriate requirement to use a standard for the segment the data provided by the counterparties for the various QFC QFC data, will the complexity and positions. quantity of data hinder the ability of the 73 See 17 CFR 45.5.

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records entity. It identifies which FDIC to evaluate both the loan and the transfer or termination of QFCs with a division or trading desk of a records swap. The information that would be given counterparty and the potential entity has entered into the QFC maintained with respect to related risk of contagion in the financial position. This information is necessary obligations includes a reference number markets. Therefore, the data would need to enable the FDIC to evaluate the of the obligation and information about to be aggregated only to the extent business purposes of each QFC and the borrower, lender and any other permitted under the governing locate back office contacts. The material terms of the related obligation. agreements and applicable law. Such information that would be maintained information also would provide relative b. Table A–2 in this field would help to determine concentrations of risk with the purpose of the QFC and assist the Table A–2 would require a records counterparties under each applicable FDIC to determine whether the QFC was entity to maintain counterparty agreement. A records entity could also backed by another entity or an affiliate, aggregate exposures and collateral data transact QFCs for hedging or other if the QFC had a full or partial hedge, for all QFCs entered into by a records purposes with the various affiliates or if the QFC was used to hedge an entity with a counterparty. For such within a group, which may include asset. In addition to a unique booking data, the records entity would need to cross-border positions that cannot be unit or desk identifier, a description of demonstrate the ability to maintain netted. In order to assess the true that booking unit or desk would itemized records of collateral by exposure of an entity, the FDIC as facilitate QFC classification. This counterparty, which also would allow receiver must have a full understanding description would assist in determining for the aggregation of collateral based on of the aggregate QFC position by the specific nature and purpose of the the netting rights of the counterparty including all inter-affiliate transactions QFCs and enable the FDIC to carry out and its affiliates. The data would need in its evaluations. This information also an orderly liquidation. to take into account enforceability of would be needed to assess cross-border Counterparties to records entities netting in an insolvency close-out risk and collateral availability as well as often trade QFCs under the terms of a situation in specific jurisdictions, in the likely systemic or practical single master agreement or similar addition to contractual payment netting implication of transferring QFC governing document. Each master outside an insolvency or receivership. positions. agreement may contain non-standard The information in Table A–2 would Table A–2 would require legal provisions that govern the need to be maintained at each level of comprehensive collateral information, relationship of the parties. In certain netting under a master agreement. For including market value of collateral, cases, counterparties may maintain example, if a master agreement includes location of collateral, and any custodial multiple master agreements with the Annexes that require intermediate and segregation arrangements. Collateral same records entity. For the FDIC to netting under each Annex, the net excess or deficiency positions as well as accurately assess the effect of transfer or exposures under each Annex would collateral thresholds and valuation termination of QFC positions on the need to be maintained separately. The discounts also would need to be financial stability of the derivatives and data would need to identify whether provided. The creditworthiness of other financial markets, such QFC multi-party or cross-product netting is counterparties that might not be able to positions would need to be aggregated contemplated among affiliates in a return rehypothecated collateral under the relevant corresponding corporate group and provide exposure represents an additional risk to a QFC agreements or governing documents at data taking into account such multi- transaction. Conversely, if the records each level permitted by the documents. party or cross-product netting. To the entity is able to rehypothecate collateral, To the extent the master agreements are extent netting is not enforceable in an the records entity may create additional subject to further cross-product or insolvency of the records entity or the risks for its counterparties. Table A–2 multi-party netting, such ‘‘master- counterparty, the positions that cannot would require identification of the master agreements’’ also would need to be netted in an insolvency would not collateral status and a notation whether be identified. All master agreements are need to be netted for the purpose of collateral posted to a counterparty is included in the QFC definition under Table A–2. This information would subject to re-hypothecation. This the Act and would be required to be allow counterparty-level data to be information would enable the FDIC as treated as QFCs for all purposes under segregated by records entity and receiver to comply with the law and the Proposed Rules. The data that would counterparty. The use of the term transfer QFC obligations together with be maintained must enable the FDIC to ‘‘counterparty’’ would also include each the related collateral.74 In addition, it not only aggregate and disaggregate affiliate in a records entity’s corporate would enable the receiver to identify positions at the level of each group that is a counterparty to an inter- excess collateral of counterparties for counterparty, affiliate, and agreement, affiliate QFC. possible return should the contracts be but also to determine the overall effect The title and name of each master terminated after the one business day of the FDIC’s decisions for each of the agreement, master netting agreement, stay. For cross-border transactions, this counterparty’s and the records entity’s and accompanying governing information would help the FDIC corporate groups. documentation relating to counterparty evaluate the availability of collateral in Table A–1 would also require the positions, would enable the FDIC as different jurisdictions and the related records entity to maintain information receiver to identify the related close-out risks if the receiver cannot with respect to any loan or other agreement and review the contractual arrange for the transfer of QFC positions obligation that relates to a QFC. For provisions governing the counterparty under local law. example, the counterparty to a swap relationship. with a records entity may have entered The primary objective of proposed c. Table A–3 into the swap to hedge the interest rate Table A–2 is to identify exposure of the Table A–3 would require the exposure on amounts borrowed from an records entity to each counterparty and maintenance of legal agreement data for affiliate of the records entity, where its affiliates, as well as the exposure that each QFC agreement or master both the loan and the swap are secured counterparties might have to the records agreement between each records entity by one mortgage on the property. This entity. This information would enable information is necessary to enable the the FDIC to determine the effects of 74 12 U.S.C. 5390(c)(9)(A)(i)(IV).

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and counterparty. For each QFC, the transfer restrictions and non-standard proposed recordkeeping requirements records entity would be required to covenants would enable the FDIC as generally reflect the size and complexity maintain in readily accessible receiver to evaluate the treatment of of entities that likely qualify as records searchable format all of the following QFCs under such contracts in an orderly entities? Are there any additional documents: Legal agreements (including liquidation of the records entity or its records or data that would assist the master agreements, annexes, affiliate under Title II of the Act FDIC in its role as receiver with respect supplements or other modifications d. Table A–4 to a covered financial company? with respect to the agreements) between 63. Are there any impediments to the records entity and its counterparties Table A–4 would expand on the information set forth in Table A–2. Each maintaining the records proposed to be that govern QFC transactions; required? How should these documents related to and affirming the records entity would be required to maintain collateral detail data both with impediments be resolved? Please position; active or ‘‘open’’ specify why the unavailability of a confirmations, if the position has been respect to collateral received and with record would or would not create confirmed; credit support documents; respect to collateral posted. Such impediments to the transfer or and assignment documents, if information would need to be repudiation of the affected QFCs. applicable, including documents that maintained on a counterparty-by- confirm that all required consents, counterparty basis. In addition, the data 64. Should different records or data be approvals, or other conditions precedent would need to include collateral required to be maintained by records for such assignment(s) have been information for each records entity. The entities based on entity types? obtained or satisfied. collateral information would need to be 65. Are any of the proposed Counterparties to records entities capable of aggregation for the records recordkeeping requirements not often trade QFCs under the terms of a entity’s corporate group, as well as the necessary or appropriate to assist the master agreement (for example, an ISDA counterparty’s corporate group to the FDIC as receiver? If not, why not? Are master agreement) coupled with other extent required or permitted by any some records not necessary or governing documentation. Therefore, it applicable netting agreements. The data appropriate based on the entity type of is important that the legal agreement(s) in this Table, together with the data in the records entity? Would any of the between the records entity and Table A–2, would allow the FDIC to contemplated records or data result in counterparty be identified by name and better understand the QFC portfolio undue burden on records entities? any unique identifier information. Such risk, and to model various QFC transfer agreement(s) outline the legal terms of or termination scenarios. 66. Do the proposed recordkeeping the transaction, including relevant Questions: requirements overlap or conflict with governing law, and will assist the 58. Is it reasonable for the Proposed any existing or proposed regulatory receiver in determining a definitive Rules to require collateral detail data requirements applicable to various course of action. The records entity both with respect to collateral received entities that would qualify as records would need to identify the relevant and collateral posted, on a counterparty- entities? If so, how should any governing law. The records entity also by-counterparty basis? Is it reasonable conflicting or overlapping requirements would need to include a list and for the Proposed Rules to require data be addressed? Specifically, do the description of any events of default or that include collateral information for proposed recordkeeping requirements termination events that are in addition each records entity? If not, what are the overlap with or conflict with the to those specified in the form of viable alternatives? proposed recordkeeping rules agreement used, as well as a list and 59. Are there any additional records applicable to broker-dealers and description of events of default or that should be maintained by a records security-based swap dealers (SBSD)? 75 termination events that have been entity? If so, what additional categories If so, be as specific as possible regarding removed by mutual agreement. In or fields should be included? Please be how the Proposed Rules may conflict addition, each records entity would specific in identifying data to be and provide specific recommendations need to specify all ‘‘specified financial maintained. for making this Proposed Rules and the condition clauses’’ that are part of a 60. Do the recordkeeping proposed rules applicable to broker- given agreement, as well as the entity to requirements sufficiently capture dealers and SBSDs more consistent. Do which such QFCs are linked. information regarding QFCs that are any existing regulatory requirements To the extent a counterparty does not linked to the records entity? Do the require records to be maintained in a use a specific industry standard form, recordkeeping requirements sufficiently format that is similar to the format set the records entity could either prepare capture information regarding QFCs that forth in the Proposed Rules, or that this information by reference to the are guaranteed or otherwise supported would otherwise allow for the FDIC to standard form or by providing a list and by the records entity? easily evaluate the records in the event description of all relevant events of 61. In the event that only some it is appointed as receiver? How could default or termination events. This portion of the QFC records need to be any existing reporting or recordkeeping information would assist the receiver in capable of being produced immediately, requirements be used to assist the FDIC planning a course of action and in should fewer data elements be required? in its role as receiver? Could any determining whether there are any 62. Please comment on the general existing regulatory requirements be events that trigger the counterparty’s nature and scope of records proposed to modified to require maintenance of the right to terminate the agreement. be maintained Should some records be records required under the Proposed Because the receiver has a limited further explained? How does the nature Rules? If so, how? Would any such period of time in which to evaluate QFC and scope of records compare to other modifications promote efficiencies or provisions, the availability of the legal QFC recordkeeping requirements (e.g., reduce the burden or costs on records agreements in fully searchable swap data repositories)? Are there ways entities? Conversely, could they electronic form is of utmost importance. to further align the recordkeeping adversely affect the FDIC’s ability to In particular, the identification of any requirements with those of other support by or linkage to a parent entity reporting repositories to reduce 75 See e.g., Exchange Act Release No. 71958, 79 or affiliate and the identification of any regulatory burden? If so, how? Do the FR 25194 (May 2, 2014).

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exercise its rights and obligations as company but leave the interest-rate receivership, and will be better able to receiver? swap in the receivership where it could assess the potential impact (‘‘knock-on 67. If there are QFCs between a potentially be terminated by the effects’’) that such decisions may have records entity and a counterparty that counterparty, which would expose the on the financial markets as a whole and are of the type that typically would be bridge financial company’s assets to particularly on individual sectors of the covered by two or more different types previously hedged risks. Should the economy. Is the use of a GIC or SIC code of master agreements, should a different position-level data require the purpose appropriate? Are there alternative codes schedule be required for each such of the position? With respect to hedging that would better assist the FDIC? different type of QFC? positions, what are the appropriate 74. Table A–4 to the Appendix 68. What would be the most efficient general categories for the item(s) that are requires recordkeeping in the form of a method of obtaining information as to hedged? Are the hedging categories ‘‘yes or no’’ on whether the collateral for changes affecting individual positions, listed in Table A–1 (hedging mortgage a particular position is segregated and a as well as changes to Master Agreements servicing, hedging a mortgage pipeline) brief description of such segregation. pursuant to annexes, changes to appropriate examples? Should Table A– This information is necessary for the annexes, other amendments and 1 require different information for QFCs FDIC to decide whether to transfer protocols? where the position consists of hedging QFCs. If the FDIC as receiver decides to 69. What would be the most efficient strategies? Should the position-level transfer all QFCs between the covered way to account for inter-affiliate data require specific identifiers for financial company in receivership and a positions while avoiding duplication of portfolio hedging transactions? If so, specific counterparty, the Act requires position reporting? Should the position- how should split hedging be treated? the FDIC to transfer all property or level data require a unique counterparty 72. The recordkeeping requirement collateral securing such QFCs.76 If the identifier and counterparty name for the for the reference number of any related collateral underlying such QFCs is not counterparty to related inter-affiliate loan data, if applicable, in Table A–1 to segregated, then the FDIC may need to position(s) with non-records entities in the Appendix serves a similar purpose ‘‘disentangle’’ such collateral if it the corporate group or with non- as the requirement to identify the decides to transfer the QFCs and the affiliates? particular purpose of a position. To the collateral in accordance with the 70. In order to enable the FDIC as extent a QFC is related to a specific loan requirements of the Act or, if it does not receiver to meet pending margin calls or loans held by the covered financial disentangle the collateral, it may need to for all companies in a corporate group, company in receivership or an affiliate, transfer certain QFCs and other assets should a records entity be required to it may be beneficial to transfer or retain that it would not otherwise have provide information as to collateral in the receivership the QFC and the decided to transfer. Does this deficiencies, after giving effect to related loan or loans in conjunction recordkeeping requirement sufficiently pending margin calls, of each subsidiary with each other where, in the case of a capture the information the FDIC needs? that is not a records entity? Should a transfer, the bridge financial company records entity also be required to Are there any alternative approaches? does not end up holding a QFC without 75. Is there a different format for provide information as to the location of also holding directly or indirectly the maintaining the records that would collateral provided in connection with related loan or loans. For example, the improve the receiver’s ability to such subsidiaries’ positions or other covered financial company may have additional information with respect to evaluate QFC portfolios? How do the issued a loan along with a related proposed formatting requirements affect the positions of such subsidiaries? interest rate swap, and in the case of 71. Table A–1 of the Appendix a records entity’s ability to generate the resolution, it might be beneficial to records in the time frames provided for requires position-level data that transfer to the bridge financial company, identifies whether the purpose of such in the Proposed Rules? Are there any or terminate, together the interest rate other requirements relating to positions is for hedging or trading, and swap and the underlying loan. To the if the purpose of a position is for formatting or transmission of records extent a QFC position has a related loan that the Secretary should consider? hedging, Table A–1 requires a general or loans, would it be appropriate for a description of the hedge (e.g., hedging records entity to include the reference IV. Administrative Law Matters mortgage servicing or hedging a number for any related loan? Would it A. Initial Regulatory Flexibility Analysis mortgage pipeline). This information is be appropriate for a records entity to necessary for the FDIC to determine the include the legal name of the records The Regulatory Flexibility Act (the corporate group’s business strategy for entity that is lender of related loan as ‘‘RFA’’) (5 U.S.C. 601 et seq.) requires an purposes of estimating the financial and required in the position-level data? agency to consider whether the rules it operational impact of the FDIC’s 73. As specified in Tables A–1 and A– proposes will have a significant decision to transfer, disaffirm or 2, records entities are also required to economic impact on a substantial repudiate, or retain the QFC in the maintain the industry code for each number of small entities. Congress receivership. For example, if the counterparty by using either the Global enacted the RFA to address concerns covered financial company entered into Industry Classification (GIC) code or the related to the effects of agency rules on a QFC in the form of an interest rate Standard Industrial Classification (SIC) small entities, and the Secretary is swap to hedge the interest rate risk code. Each of these two codes uses four sensitive to the impact the Proposed associated with its portfolio of digits to identify the primary business of Rules may impose on small entities. In mortgage-backed securities, knowing the an entity, and is designed to facilitate this case, the Secretary believes that the purpose of the QFC position will help uniformity and comparability in the Proposed Rules likely would not have a the FDIC decide whether to transfer collection, presentation, and analysis of ‘‘significant economic impact on a both the mortgage-backed securities and data. By having access to a GIC or SIC substantial number of small entities.’’ 5 the interest-rate swap to a bridge code for each counterparty, the FDIC U.S.C. 605(b). The Act mandates that financial company. Without knowing will be better positioned to estimate the the Secretary prescribe regulations the purpose of the position, the FDIC financial and operational impact of its requiring financial companies to could potentially transfer the mortgage- decisions to transfer, disaffirm or backed securities to a bridge financial repudiate, or retain QFCs in the 76 12 U.S.C. 5390(c)(9)(A)(i)(IV).

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maintain records with respect to QFCs Proposed Rules. While the Secretary afforded by the Act; (2) retain such to assist the FDIC as receiver of a believes that the Proposed Rules likely QFCs within the receivership and allow covered financial company in being able would not have a significant economic a counterparty to terminate the QFCs; to exercise its rights under the Act and impact on a substantial number of small (3) retain the QFCs within the fulfill its obligations under section entities (5 U.S.C. 605(b)), the Secretary receivership and disaffirm or repudiate 210(c)(8), (9), or (10) of the Act. As a does not have complete data at this time the QFCs; (4) exercise its rights to result, the economic impact on financial to make this determination, particularly enforce certain QFCs of subsidiaries and companies, including small entities, with regard to affiliated financial affiliates under section 210(c)(16) flows directly from the Act, and not the companies. Therefore, an Initial within the narrow time window Proposed Rules. Comments are Regulatory Flexibility Analysis has been afforded under section 210(c)(10) of the requested on whether the Proposed prepared in accordance with 5 U.S.C. Act; 78 and (5) assess the consequences Rules would have a significant 603. of decisions to transfer, disaffirm or economic impact on a substantial The Secretary also requests that repudiate, or retain QFCs, including the number of small entities and whether commenters quantify the number of potential impact that such decisions the costs are the result of the Act itself, small entities, if any, that would be may have on the financial markets as a and not the Proposed Rules. subject to the Proposed Rules, describe whole. Because of the narrow time Instead of requiring all financial the nature of any impact on small window by which the FDIC may decide companies to maintain records with entities, and provide empirical and to transfer QFCs of the covered financial respect to QFCs, the Secretary is other data to illustrate and support the company and enforce the QFCs of the narrowing the scope of the Proposed number of small entities subject to the covered financial company’s Rules to a smaller subset of financial Proposed Rules and the extent of any subsidiaries and affiliates under section companies. As a threshold matter, the impact. After reviewing the comments 210(c)(9), (10) and (16) of the Act, it is Secretary is proposing to exclude from received during the public comment necessary that financial companies that the scope of the Proposed Rules period, the Secretary will consider qualify as records entities maintain the financial companies that do not meet whether to conduct a final regulatory capacity to generate, on an ongoing one of the following three criteria: (1) flexibility analysis. basis, QFC information in a common Are designated pursuant to section 113 1. Statement of the Need for, Objectives data format. Upon being appointed as of the Act (12 U.S.C. 5323) to be a of, and Legal Basis for, the Proposed receiver under Title II of the Act, the nonbank financial company that could Rules FDIC needs to analyze such data to pose a threat to the financial stability of facilitate the resolution of QFC the United States; (2) are designated The Secretary is proposing a portfolios. As noted earlier, the pursuant to Section 804 of the Act (12 regulation to implement section information must be sufficient to allow U.S.C. 5463) as a financial market utility 210(c)(8)(H) of the Act, as required by the FDIC to estimate the financial and that is, or is likely to become, the Act. Section 210(c)(8)(H) provides operational impact on the covered systemically important; or (3) have total that, if the federal primary financial financial company or its affiliated assets equal to or greater than $50 regulatory agencies do not prescribe financial companies of the FDIC’s billion. Since the Act’s enactment in joint final or interim final regulations decision to transfer, disaffirm or 2010, eleven financial companies have requiring financial companies to repudiate, or retain the QFCs. been designated by the Council under maintain records with respect to QFCs Additionally, it must allow the FDIC to categories (1) and (2), and the to assist the FDIC as receiver for a assess the potential impact that such Secretary’s understanding is that each of covered financial company to exercise decisions may have on the financial those designated companies has its rights and fulfill its obligations under markets as a whole. revenues in excess of the Small certain provisions of the Act within 24 Business Administration’s (‘‘SBA’’) months of the enactment of the Act, the 2. Small Entities Affected by the revised standards for small entities, Secretary, as Chairperson of the Proposed Rules which went into effect on July 22, 2013. Council, shall prescribe, in consultation As discussed above, the Proposed Moreover, the Secretary, as Chairperson with the FDIC, such regulations. Rules would only affect large financial of the Council, does not expect that any The Proposed Rules would require companies and certain of their affiliates small entities will be designated by the records entities to maintain detailed that meet the definition of a records Council in the foreseeable future.77 information about their QFC positions entity. The Secretary proposes that the However, the Proposed Rules would and be capable of providing this recordkeeping requirements in the also apply to these large financial information to their PFRAs within 24 Proposed Rules be applicable to all companies’ affiliated financial hours of request. The Proposed Rules affiliated financial companies in a large companies (regardless of their size) if an include, among other things, corporate group that meet the definition affiliated financial company otherwise recordkeeping requirements with of records entity, regardless of their size, qualifies as a ‘‘records entity’’ and is not respect to position-level data, because an exemption for small entities an ‘‘exempt entity’’ under the Proposed counterparty-level data, legal would significantly impair the FDIC’s Rules. documentation data, and collateral-level right to enforce certain QFCs of affiliates The RFA requires agencies either to data. These requirements would assist of covered financial companies under provide an initial regulatory flexibility the FDIC in resolving financial section 210(c)(16) of the Act. Such analysis with a proposed rule or to companies that may be subject to enforcement may be necessary for the certify that the proposed rule will not orderly liquidation under Title II of the FDIC to preserve the critical operations have a significant economic impact on Act. Specifically, these data are of these affiliated financial companies. a substantial number of small entities. necessary to enable the FDIC as receiver Based on current information and In accordance with section 3(a) of the of a covered financial company in discussions with several of the PFRAs RFA, the Secretary has reviewed the deciding whether to: (1) Transfer the who are familiar with financial covered financial company’s QFCs 77 See 77 FR 21637, 21650 (April 11, 2012) and under section 210(c)(9) and (10) of the 78 See 12 U.S.C. 5390(c)(16)(A); 12 CFR 76 FR 44763, 44772 (July 27, 2011). Act within the narrow time window 380.12(a)(2).

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company operations and have experience supervising financial retain such QFCs within the experience supervising financial companies with QFCs portfolios, the receivership and allow a counterparty to companies with QFCs portfolios, the Secretary believes that records entities terminate the QFCs; (3) retain the QFCs Secretary believes that the large should already be maintaining most of within the receivership and disaffirm or corporate groups that would be subject these QFC records as part of their repudiate the QFCs; (4) exercise its to the Proposed Rules are likely to have ordinary course of business. However, rights to enforce certain QFCs of an existing centralized system for the Secretary recognizes that the subsidiaries and affiliates under section recording and reporting QFC activities Proposed Rules’ form and availability 210(c)(16) within the narrow time that they will continue to rely upon to requirements may impose additional window afforded under section perform most of the recordkeeping costs and burdens on records entities. 210(c)(10) of the Act; and (5) assess the requirements set forth herein. The entity To help reduce these costs and burdens, consequences of decisions to transfer, within the corporate group responsible section 148.3(c) of the Proposed Rules disaffirm or repudiate, or retain QFCs, for this centralized system will likely provides the Secretary with the ability including the potential impact that such operate and maintain a technology to grant general and specific exemptions decisions may have on the financial shared services model with the majority from compliance with one or more of markets as a whole. Additionally, the of the technology applications, systems, the requirements of the Proposed Rules exemption provisions set forth in the and data shared by the affiliated under certain circumstances. For Proposed Rules are designed to enable financial companies within the large example, the exemption provisions set the rules to work in conjunction with corporate group. Therefore, the entity forth in the Proposed Rules are designed the CFTC’s and SEC’s recordkeeping responsible for this centralized system, to enable the rules to work in requirements, as they would provide the and not the affiliated financial conjunction with the CFTC’s, SEC’s and ability for the Secretary to be flexible in companies, may be most significantly other regulatory recordkeeping taking such requirements into account. impacted by the Proposed Rules. The requirements, as they would provide the The Secretary seeks comment affiliated financial companies may be ability for the Secretary to be flexible in regarding any other statutes or able to utilize the technology and taking such requirements into account. regulations that would duplicate, network infrastructure operated and Although section 148.3(a)(1) of the overlap, or conflict with the Proposed maintained by their respective entities Proposed Rules specifies a standard Rules. responsible for the centralized format for recordkeeping, the Secretary, recordkeeping system. Additionally, the upon receipt of recommendation from 5. Significant Alternatives to the entities responsible for maintaining the FDIC made in consultation with the Proposed Rules these centralized systems for each large appropriate PFRAs, could exempt The Secretary is unaware of any corporate group will likely exceed the records entities from this requirement appropriate alternatives to the Proposed SBA’s revised size standards for small on the condition that they maintain 79 Rules, other than those included and entities. Accordingly, the Secretary electronic records maintained in a swap discussed in the Proposed Rules, that believes the Proposed Rules will not data repository or internally in a accomplish the stated objectives of the have a significant economic effect on a different format. Therefore, the format of Proposed Rules and that minimize any substantial number of small entities. proposed Tables A–1 through A–4 of the significant economic impact of the The Secretary seeks information and Appendix should not complicate Proposed Rules on small entities. The comment on the role of entities appropriate recordkeeping, so long as Secretary requests comment on whether responsible for the centralized the information set forth in the there are ways to reduce the burdens recordkeeping systems and whether Appendix can be provided to the FDIC associated with the recordkeeping such entities are small entities to which in a manner that allows the FDIC to requirements on small entities the Proposed Rules would apply. properly analyze and aggregate the data. associated with the Proposed Rules. The Proposed Rules further provide the 3. Projected Recordkeeping, and Other Secretary with the authority to grant B. Paperwork Reduction Act Compliance Requirements extensions of time for compliance As discussed in more detail above, the purposes. The collection of information Proposed Rules impose certain The Secretary seeks information and requirements in the Proposed Rules recordkeeping requirements on records comment on any costs, compliance have been submitted by the Secretary to entities. A records entity is required to requirements, or changes in operating the Office of Management and Budget maintain all records described in procedures arising from application of (‘‘OMB’’) for review in accordance with section 148.4 of the Proposed Rules in the Proposed Rules on small entities. the Paperwork Reduction Act of 1995 electronic form and be able to generate (the ‘‘PRA’’), 44 U.S.C. 3507(d). data in the format set forth in the 4. Identification of Duplicative, Comments on the collection of Appendix to the Proposed Rules. The Overlapping, or Conflicting Federal information should be sent to the Office Rules Proposed Rules include, among other of Management and Budget, Attention: things, recordkeeping requirements with The Secretary does not believe that Desk Officer for the Department of respect to position-level data, any Federal rules duplicate or conflict Treasury, Office of Information and counterparty-level data, legal with the Proposed Rules. The Proposed Regulatory Affairs, Washington, DC documentation data, and collateral-level Rules may overlap with certain CFTC 20503, with copies to the Department of data. Additionally, such records shall be and SEC recordkeeping requirements. Treasury at the addresses previously capable of being transmitted However, the Secretary believes the specified herein. Comments on the electronically to the records entity’s Proposed Rules are necessary to assist information collection should be PFRAs. the FDIC as receiver for a covered submitted no later than March 9, 2015. Based on discussions with several of financial company in deciding whether Comments are specifically requested the PFRAs who are familiar with to: (1) Transfer the covered financial concerning: financial company operations and have company’s QFCs under section 210(c)(9) (1) Whether the proposed information and (10) of the Act within the narrow collection is necessary for the proper 79 See 13 CFR 121.201. time window afforded by the Act; (2) performance of agency functions,

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including whether the information will The Proposed Rules also provide that requests comment on the total number have practical utility; a records entity may request in writing of respondents. (2) The accuracy of the estimated a specific exemption from the Proposed The Secretary’s initial recordkeeping, burden associated with the proposed Rules, and may also request an reporting, data retention, and records collection of information, including the extension of time with respect to generation burden estimates are based validity of the methodology and compliance with the recordkeeping on discussions with the PFRAs assumptions used (see below); requirements. regarding their prior experience with (3) How to enhance the quality, Respondents initial burden estimates for other utility, and clarity of the information recordkeeping systems. The Secretary required to be maintained; The Secretary estimates that also considered the burden estimates in (4) How to minimize the burden of approximately 140 large corporate rulemakings with similar recordkeeping complying with the proposed groups, and each of their respective and reporting requirements.80 information collection, including the affiliated financial companies that is a application of automated collection party to an open QFC or guarantees, In order to comply with the Proposed techniques or other forms of information supports or is linked to an open QFC of Rules, each of the large corporate group technology; an affiliate and is not an ‘‘exempt respondents will need to set up its (5) Estimates of capital or start-up entity’’, will meet the definition of network infrastructure to collect data in costs and costs of operation, records entity in section 148.2(l). This the required format. This will likely maintenance, and purchase of services list of large corporate groups likely impose a one-time initial burden on the to maintain the information; and includes bank holding companies, large corporate group respondents in (6) Estimates of (i) the number of nonbank financial companies connection with the necessary updates financial companies subject to the determined pursuant to section 113 of to their recordkeeping systems, such as Proposed Rules, (ii) the number of the Act to be an entity that could pose systems development or modifications. records entities that are parties to an a threat to the financial stability of the The initial burden for each large open QFC or guarantee, support, or are United States, financial market utilities corporate group respondent to set up its linked to an open QFC, and (iii) the designated pursuant to Section 804 of network infrastructure will depend number of affiliated financial companies the Act as a financial market utility that largely on whether the financial that are parties to an open QFC or is, or is likely to become, systemically companies already hold and maintain guarantee, support, or are linked to an important; broker-dealers registered QFC data in an organized electronic open QFC of an affiliate. with the SEC under section 15 of the format, and if so, whether the data The collection of information in the Securities and Exchange Act of 1934; currently resides on entirely different Proposed Rules is in §§ 148.3 and 148.4 investment advisers registered with the systems rather than on one centralized and in Tables A–1, A–2, A–3, and A– SEC under section 203 of the Investment system. Large corporate group 4 of the Appendix. The collection of Advisers Act of 1940 and unregistered respondents may need to amend information is required by section investment advisers; investment internal procedures, reprogram systems, 210(c)(8)(H) of the Act, which mandates companies registered with the SEC reconfigure data tables, and implement that the Secretary prescribe regulations under section 8 of the Investment compliance processes. Moreover, they requiring financial companies to Company Act of 1940; insurers; real may need to standardize the data and maintain records with respect to QFCs estate investment trusts; and finance create records tables to match the format to assist the FDIC as receiver for a companies. The Proposed Rules would required by the Proposed Rules. covered financial company in being able also apply to these large corporate However, this initial burden is mitigated to exercise its rights under the Act and groups’ affiliated financial companies to some extent because QFC data is fulfill its obligations under section (regardless of their size) if an affiliated likely already retained in some form by 210(c)(8), (9) or (10) of the Act. financial company otherwise qualifies each respondent in the ordinary course The Proposed Rules implement these as a ‘‘records entity’’ and is not an of business. requirements by requiring that a records ‘‘exempt entity’’ under the Proposed As discussed above, the Proposed entity maintain all records specified in Rules. Rule also applies to certain affiliated the Proposed Rules in electronic form The Secretary estimates that these financial companies of the large and be capable of generating and large corporate groups collectively have corporate group respondents. The transmitting data electronically to such 23,325 affiliated financial companies Proposed Rules will likely impose a records entity’s PFRAs and the FDIC. that may qualify as records entities one-time initial burden on the affiliated The Proposed Rules require that a based on discussions and consultations financial companies in connection with records entity be capable of providing with the PFRAs who are familiar with necessary updates to their QFC records to its PFRA within 24 financial company operations and have recordkeeping systems, such as systems hours of the request of such PFRA. The experience supervising financial development or modifications. These Proposed Rules set forth various companies with QFC portfolios. Because burdens will vary widely among recordkeeping requirements with there is no information available to affiliated financial companies. Their respect to, among other things, position- determine how many of these affiliated initial burden will depend largely on level data, counterparty-level data, legal financial companies are a party to an whether the affiliated financial documentation data (including copies of open QFC or guarantee, support, or are companies already hold and maintain agreements governing QFC transactions linked to an open QFC of an affiliate, QFC data in an organized electronic and open confirmations), collateral level and thus would qualify as records format, and if so, whether the data data, a list of affiliates of counterparties entities, the Secretary has assumed that currently resides on entirely different and of the records entity, a list of all 23,325 affiliated financial companies systems rather than on one centralized vendors supporting QFC-related would qualify as record entities. The system. activities, risk metrics used to monitor Secretary recognizes that, based on a the QFC portfolio, and risk manager number of factors, the actual total 80 See 76 FR 46960 (August 3, 2011); 76 FR 43851 contact information for each portfolio number of respondents may differ (July 22, 2011); 77 FR 2136 (January 13, 2012); 75 that includes QFCs. significantly from these estimates and FR 78162 (December 22, 2008).

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The Secretary believes that the large regulations requiring financial important element of a resolution corporate groups subject to the Proposed companies to maintain records with strategy which, if not handled properly, Rules are likely to rely on centralized respect to QFCs to assist the FDIC as may magnify market instability. Large, systems for their QFC activities that will receiver of a covered financial company interconnected financial companies may perform most of the recordkeeping in being able to exercise its rights under hold very large positions in QFCs requirements set forth herein. The entity the Act and fulfill its obligations under involving numerous counterparties. A responsible for this centralized system section 210(c)(8), (9), or (10) of the Act. disorderly unwinding of these QFCs, will likely operate and maintain a Reporting including the rapid liquidation of technology shared services model with Estimated Number of Respondents: collateral, could cause severe negative the majority of the technology 140. consequences for not only the Total estimated annual reporting applications, systems, and data shared counterparties themselves but also U.S. burden: by the multiple affiliated financial financial stability. companies within the corporate group. Estimated average annual burden Therefore, the Proposed Rules will hours per respondent: 25 hours. In order for the FDIC to effectuate an impose the most significant burden on Estimated frequency: Annually. orderly liquidation of a covered the entities responsible for these Estimated total annual reporting financial company under Title II and centralized systems within the large burden: 3,500 hours per year. thereby minimize systemic risk, the corporate group respondents, and not An agency may not conduct or FDIC would need to make appropriate the affiliated financial companies. The sponsor, and a person is not required to decisions regarding whether to transfer affiliated financial companies will likely respond to, a collection of information QFCs to a bridge financial company or have a much lower burden because they unless it displays a valid control other solvent financial institution or can utilize the technology and network number assigned by OMB. leave QFCs in the covered financial infrastructure operated and maintained C. Executive Orders 12866 and 13563 company in receivership. It may not be possible for the FDIC to fully analyze a by the entity responsible for the It has been determined that the large amount of QFC information in the centralized system at their respective Proposed Rules are a significant short time frame afforded by Title II, large corporate group. Similarly, the regulation as defined in section 3(f)(1) of unless such information is readily Secretary believes that the affiliated Executive Order 12866, as amended. available to the FDIC in a standardized financial companies will rely on the Accordingly, the Proposed Rules have entities responsible for the centralized been reviewed by OMB. The Regulatory format designed to enable the FDIC to systems to perform the reporting Assessment prepared by the Secretary conduct the analysis in an expeditious requirements under section 148.3(c)(2) for the Proposed Rules is provided manner. and (3). below. Similarly, the Secretary believes that 2. Literature Review affiliated financial companies will rely 1. Description of the Need for the In assessing the need for these on large corporate group respondents to Regulatory Action recordkeeping requirements, we have submit requests for extensions of time, The rulemaking is required by the reviewed two categories of academic specific exemptions, or both. Dodd-Frank Act to implement the QFC literature. As highlighted above, one of Recordkeeping recordkeeping requirements of section the potential channels through which Estimated Number of Respondents: 210(c)(8)(H) of the Act. Section Estimated Number of large corporate the disorderly unwinding of these QFCs 210(c)(8)(H) generally provides that if groups: 140. could cause severe negative Estimated Number of affiliated the PFRAs do not prescribe joint final or consequences for both the financial companies: 23,325. interim final regulations requiring counterparties themselves and U.S. Total estimated initial recordkeeping financial companies to maintain records financial stability is through the rapid burden: with respect to QFCs within 24 months liquidation of collateral. The disorderly Estimated average initial burden from the date of enactment of the Act, failure of a financial company with a hours per respondent: 360 hours for the Chairperson of the Council shall large QFC portfolio may lead QFC large corporate groups, 0.5 hours for prescribe such regulations in counterparties to exercise their affiliated financial companies. consultation with the FDIC. The contractual remedies and rights by Estimated frequency: Annually. Secretary, as Chairperson of the closing out positions and liquidating Estimated total initial recordkeeping Council, is proposing the Proposed collateral, while also potentially burden: 50,400 hours for large corporate Rules in consultation with the FDIC increasing uncertainty in both groups and 11,663 hours for affiliated because the PFRAs did not prescribe derivatives and asset markets. This financial companies. such joint final or interim final could lead to lower asset prices, regulations. The recordkeeping required Total estimated annual recordkeeping decrease the availability of funding, and in the Proposed Rules is necessary to burden: increase the likelihood that other assist the FDIC as receiver to exercise its Estimated average annual burden financial companies also are forced to rights and fulfill its obligations under hours per respondent: 120 hours for liquidate assets. To assess the potential section 210(c)(8), (9), and (10) of the large corporate group, 0.5 hours for impact of rapid liquidations, or ‘‘fire affiliated financial companies. Dodd-Frank Act, by enabling it to assess sales,’’ we have reviewed economic Estimated frequency: Annually. the consequences (including any Estimated total annual recordkeeping financial systemic risks) of decisions to studies of fire sales among financial burden: 16,800 hours per year for large transfer, disaffirm or repudiate, or allow companies. Second, while there is corporate group respondents and 11,663 the termination of, QFCs with one or limited academic literature specifically hours per year for affiliated financial more counterparties. focused on the cost of a disorderly companies. The recent financial crisis has unwinding of a large, complex financial The initial and annual recordkeeping demonstrated that management of QFC company’s QFC portfolio, there has burden is imposed by the Act, which positions, including steps undertaken to been recent literature analyzing the cost requires that the Secretary prescribe close out such positions, can be an of the Lehman Brothers bankruptcy in

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2008, which may be illustrative of the Brothers bankruptcy most specialist depended more heavily on short-term potential costs.81 buyers, including most financial debt (other than insured deposits), companies, were active in the market, a. Fire Sales Among Financial reduced their business lending by but after the Lehman bankruptcy most Institutions significantly more than banks less of them were unwilling to buy assets, dependent on short-term debt financing. The economic literature on financial causing security prices to plunge, and At the time of the Lehman bankruptcy, company fire sales offers insight on prompting fund withdrawals, collateral the paper identifies two channels their potential internal and external calls, and self-reinforcing fire sales. This driving this result that collectively impacts. While not directly addressing cycle of price collapses and constituted a ‘‘run’’ on financial QFCs, the fire sale literature can be deleveraging increased the fragility of companies. First, short-term creditors applied to the potential impact of the the financial system, and disrupted refused to roll over their unsecured rapid liquidation of QFC collateral that financial intermediation. The next major commercial paper loans and repo might occur in a disorderly unwinding section discusses the Lehman failure in lenders increased collateral of a large QFC portfolio. more detail. Principles of Fire Sales Among At the time of a fire sale both seller requirements, which particularly Financial Companies. According to the and non-seller financial companies may constrained financial companies literature, a fire sale can occur when a curtail their lending, thereby imposing dependent on short-term credit for a company cannot pay its creditors additional social costs associated with significant share of their financing. without selling assets. During a fire sale, reduced financial intermediation. Second, borrowers substantially assets sold may be heavily discounted Shleifer and Vishny (2010) 83 use a increased draws on their existing credit below their fundamental values, three-period model of bank lending to lines ‘‘to enhance their liquidity and depending on the market of illustrate the dynamics. They show that, financial flexibility during the credit participating buyers. If buyers are other in normal times, securitization can lead crisis.’’ In particular, financial investors in the asset class or classes to higher lending volumes and earnings, companies that co-syndicated credit being sold (‘‘specialists’’), prices may but market sentiment shocks can lines with Lehman Brothers were more decline little. However, if the fire sale quickly reverse these outcomes. When likely to experience larger credit line occurs during a financial crisis when banks are highly leveraged, they may be drawdowns after the Lehman failure, uncertainty is higher and many more vulnerable to unanticipated and reduced their new lending more specialists, including financial shocks. A severe shock can lead them to than those without co-syndication companies, may be constrained by liquidate assets in fire sales, fostering relationships with Lehman. Ivashina solvency or liquidity pressures, they industry-wide asset price declines and and Scharfstein conclude the results are may not participate in the other side of weakening the banking system. In that consistent with a decline in the supply the market. As a result, prices may fall environment, banks may forego lending, of funding as a result of the run substantially, to a level at which buyers both to meet capital requirements and to associated with the Lehman event. who would only buy the assets in preserve the capacity to purchase On the borrower side, Campello et al. question at a large discount enter the deeply discounted assets in the future. (2010) 86 surveyed the chief financial market. Low sale prices may cause other This credit contraction may reduce officers of 1,050 nonfinancial firms in financial companies to reduce the value economic welfare due to a large number at which they hold similar assets on of potentially profitable investments the United States, Europe, and Asia and their books when marking to market, that do not receive financing. He et al. found that those that identified their 87 which may trigger a downward spiral (2010) 84 and Ivashina and Scharfstein firms as ‘‘financially constrained’’ marked by more firms in distress (2010) 85 offer evidence that financial during the financial crisis cut back more (Shleifer and Vishny, 2011).82 In companies used spare balance sheet on capital and technology investments addition, because many financial capacity to purchase discounted compared to those that identified their companies rely upon short-term sources securities after the financial crisis rather firms as ‘‘financially unconstrained.’’ of financing, such as repurchase than to increase lending. Hence, They also cut marketing expenditures agreements, the falling asset prices and foregone lending during a crisis is a by significantly greater margins, and heightened uncertainty may contribute potential social cost, although we do not shed far more employees (financially to liquidity pressures as these financing include it in our summary of costs constrained firms planned to cut 10.9 sources withdraw funding or demand associated with the Lehman Brothers percent of their personnel in 2009, more collateral. This may force even bankruptcy in the next section, since we while financially unconstrained firms solvent financial companies to sell find no specific description of it in this planned to shed 2.7 percent). The assets in order to deleverage, decrease context in the literature. survey revealed that during the crisis, the size of their balance sheets, and Potential Effects on Lending. As 86 percent of constrained firms reported reduce risk. This self-reinforcing cycle predicted by the theoretical models foregoing attractive investments, can result in additional fire sales, and discussed above, empirical research compared to 44 percent of eventually, precipitate or magnify a shows bank lending declined sharply unconstrained firms. This suggests the financial crisis. during the crisis. Ivashina and crisis-related decline in bank credit Shleifer and Vishny (2011) believe Scharfstein (2010) show that in August supply directly contributed to the that before the September 2008 Lehman through December 2008, banks that reduction in constrained firms’ investments, and imposed associated 83 81 Lehman Brothers Holdings, Inc. (‘‘Lehman Shleifer, A. and Vishny, R. (2010). Asset Fire economic effects. Brothers’’), Lehman Brothers Inc. (the U.S. Sales and Credit Easing. National Bureau of registered broker-dealer), and Lehman Brothers Economic Research working paper 15652. International (Europe) (the UK registered broker- 84 He, Z., Khang, I.G., and Krishnamurthy, A. 86 Campello, M., Graham, J., and Harvey, C. dealer) were subject to separate liquidation (2010). Balance Sheet Adjustments During the 2008 (2010). The Real Effects of Financial Constraints: proceedings. Crisis. IMF Economic Review 58: 118–156. Evidence from a Financial Crisis. Journal of 82 Shleifer, A., and Vishny, R. (2011). Fire Sales 85 Ivashina, V. and Scharfstein, D. (2010). Bank Financial Economics 97: 470–487. in Finance and Macroeconomics. Journal of Lending During the Financial Crisis of 2008. Journal 87 Derived from survey respondents’ self- Economic Perspectives 25: 29–48. of Financial Economics 97: 319–338. assessments of their financial condition.

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b. Costs of Lehman Brothers Bankruptcy qualitative descriptions of costs with may have diverged significantly from Numerous researchers have provided limited quantitative information when fair value. During the settlement process broad estimates of the economic costs of available, in an effort to provide insight the Lehman estate received $11.85 the 2007–09 financial crisis (see GAO on the costs of resolving Lehman’s QFC billion in OTC derivatives receivables (2013) 88 for a useful review). This portfolio under the bankruptcy by January 10, 2011. It is unclear how section focuses more narrowly on the proceedings. much in additional receivables may terminations of derivative contracts Private Derivatives Counterparty have been ‘‘lost’’ by Lehman due to the associated with the Lehman bankruptcy Costs: Unrecovered Claims. Estimates of termination and settlement of contracts to help illustrate the potential costs of bankruptcy claim recovery rates of OTC following its bankruptcy filing. The unwinding the derivatives portfolio of a derivative counterparties (excluding literature notes that the relatively abrupt large, complex financial company under Lehman affiliate claims) are reported in timing of the bankruptcy filing may the U.S. Bankruptcy Code. the literature at the Lehman subsidiary have also influenced the magnitude of The net worth of Lehman Brothers level, and vary widely, ranging from 31 losses. Valukas (2010) suggested that derivative positions at the time of percent for Lehman Brothers Special Lehman insufficiently planned for the bankruptcy totaled $21 billion, with 96 Financing (the largest Lehman possibility of bankruptcy, such that percent representing over-the-counter derivatives entity) to 100 percent each management only began to plan (OTC) positions.89 The portfolio for Lehman Brothers OTC Derivatives, seriously for bankruptcy a few days consisted of more than 6,000 OTC Lehman Brothers Derivatives Products, before the bankruptcy filing. A derivative contracts involving over and Lehman Brothers Financial bankruptcy court document 92 cites a 900,000 transactions at the time of Products, as of March 27, 2014 (Fleming ‘‘turnaround specialist’’ advising bankruptcy on September 15, 2008. and Sarkar (2014)). Still the authors Lehman, Bryan Marsal, as telling the Fleming and Sarkar’s (2014) 90 detailed emphasize that, ‘‘most counterparties of court-appointed examiner that the assessment of the Lehman Brothers Lehman’s OTC derivatives suffered sudden bankruptcy resulted in the loss bankruptcy finds the overall recovery substantial losses.’’ of 70 percent of $48 billion of rate of all allowed unsecured claims Private Derivatives Counterparty receivables from derivatives that could (not limited to QFCs) amounted to Costs: Loss of Hedged Positions. A key have been unwound. Yet, the same roughly 28 percent, a rate the authors reason for many counterparties to document notes that Lehman counsel describe as low relative to both an acquire derivative positions is to hedge Harvey Miller did not think the rushed estimated 59 percent for other financial against potential future market filing had an adverse impact on the company failures and 40 percent for developments. These hedges reduce estate (Valukas 2010). These accounts failures occurring in recessions. uncertainties and serve as valuable risk appear anecdotal and no information is We use a framework that divides costs management instruments. Fleming and provided on the derivation of the figures associated with derivatives resolution Sarkar (2014) suggest Lehman’s abrupt cited by Marsal. into private costs and public (external) bankruptcy took counterparties by Private Costs: Litigation and costs. Private costs consist of direct surprise, and allowed them little time to Administrative. The extended duration losses to derivatives counterparties from assess their derivative positions facing of the OTC derivatives settlement unrecovered claims, indirect costs to Lehman, decide whether to terminate process included multiple court derivatives counterparties from loss of contracts, and rehedge their positions as petitions, procedure approvals, hedged positions, costs to other Lehman needed.91 Therefore, many settlement mechanisms, and legal Brothers creditors in the bankruptcy counterparties lost their hedged challenges. While 81 percent of proceeding due to reductions in positions within a brief period and were derivative contracts in claims against recovery values resulting from the unexpectedly exposed to risks until new Lehman were terminated by November termination and settlement of OTC positions could be established. We find 13, 2008, the final settlement process derivatives, and litigation and no estimates of the costs of these lost moved more deliberately due to the administrative expenses. While we find hedges in the literature. multiple steps involved in properly no literature that assesses the public Private Costs to the Entire Lehman addressing the unprecedented scale and costs directly attributable to the Bankruptcy Estate: Settlement of OTC complexity of claims within the resolution of Lehman’s derivatives Derivatives. Fleming and Sarkar (2014) bankruptcy process. Only 84 percent of portfolio, below we examine the note that the settlement of Lehman’s derivatives claims had been settled by literature assessing the public impact of OTC derivatives claims may have also the end of 2012. Estimates of litigation Lehman’s failure more broadly. resulted in significant losses to the and administrative expenses for OTC While rigorous estimates of the value Lehman bankruptcy estate. Derivatives derivatives alone are not available, but of each cost element listed above would valuation claims are generally based on these expense categories for the full be ideal, in reality we are constrained by replacement costs and they note that Lehman settlement process were a lack of publicly available data. due to the large prevailing bid-ask estimated to total $3.2 billion as of May Therefore, this section combines spreads at the time of Lehman’s 13, 2011 (Fleming and Sarkar (2014)). bankruptcy filing, replacement costs Public Costs: Externalities. The event 88 Government Accountability Office, Financial study is a common method of estimating Regulatory Reform: Financial Crisis Losses and 91 Fleming and Sarkar believe the selection of the the market impact of a particular event. Potential Impacts of the Dodd-Frank Act, GAO–13– termination date for safe harbor purposes 180 (January 16, 2013). influenced this. They write (p. 25), ‘‘Although Measured market reactions to the 89 Most derivatives were held in several Lehman filed for bankruptcy protection at about Lehman bankruptcy are based on the subsidiaries specializing in derivatives and related 1:00 a.m. on Monday, September 15, 2008, the institution’s failure event as a whole; instruments. Since Lehman had numerous termination date was set as Friday, September 12 they are not reactions to the QFC subsidiaries with intermingled interests, we for derivatives subject to automatic termination. simplify the discussion by describing them as if Normally, nondefaulting derivatives counterparties resolution process alone and therefore they were a single entity, except when specificity of Lehman would have attempted to hedge their is necessary for descriptive accuracy. positions on Monday to mitigate expected losses on 92 Valukas, A. (2010). ‘‘Report of the Examiner in 90 Fleming, M. and Sarkar, A. (2014). The Failure their position. However, they could not do so since the Chapter 11 Proceedings of Lehman Brothers Resolution of Lehman Brothers. Economic Policy their positions were deemed to have terminated two Holdings Inc.’’ March 11. Accessed at: http:// Review 20(2). Federal Reserve Bank of New York. days earlier.’’ jenner.com/lehman/.

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overstate the impacts of these support to Lehman in the first week apply to non-depository financial terminations. We may plausibly assume, after the bankruptcy as a critical factor companies that are eligible for however, that the market reactions to in the recovery of claims against at least resolution under Title II of the Dodd the overall Lehman collapse part of Lehman Brothers, which allowed Frank Act. The proposed recordkeeping announcement included a component it to keep operating until it was acquired requirements of the Proposed Rules are associated with potential costs of by Barclays. Between September 15 and based, in part, on Part 371, and have settling their derivative contracts.93 18, 2008, Lehman Brothers Inc. been informed by the FDIC’s experience Johnson and Mamun (2012) 94 apply borrowed $68 billion from the Primary with both large and small portfolios of an event study approach to assess stock Dealer Credit Facility (PDCF). Because QFCs of failed insured depository market reactions of a sample of 742 U.S. the borrowed funds were fully institutions. However, the information financial institutions—divided into collateralized and repaid in full with requirements of the Proposed Rules are banks, savings and loans, brokers, and interest, the Congressional Budget more extensive. While Part 371 requires primary dealers—on the date of the Office (2010) 97 estimated that total certain position-level data and Lehman bankruptcy filing. While each lending through the PDCF involved a counterparty-level data, the Proposed group of institutions showed negative negligible subsidy value. Rules require certain position-level data abnormal returns, only the bank (-3 Global Public Costs: Externalities. The and counterparty-level data that are not percent) and primary dealer (-6 percent) economic literature is rich with event required by Part 371. Part 371 also does coefficients were statistically studies of market reactions to policy not require recordkeeping with regard to significant. The data strongly support announcements designed to alleviate Legal Agreements or Collateral Detail the notion that the event had differential the financial crisis, however, we find no Data to the same extent as is impacts by type of financial institution studies focusing directly on the global contemplated in Tables A–3 and A–4 to and abnormal returns across institution market impacts of the Lehman Brothers the Appendix in the Proposed Rules. groups were jointly significantly bankruptcy as an event. We also Similar to the Proposed Rules, under different from zero. acknowledge global spillovers as a Part 371, any insured depository 95 Dumontaux and Pop (2012) apply a potential public cost, however, we find institution that is subject to the similar approach to assess stock market no studies focusing directly on the requirements must produce and reactions of a sample of 382 U.S. global impacts of the Lehman Brothers maintain the required records in an financial companies, using brief event bankruptcy as an event. electronic format, unless the institution windows. They report heterogeneous has fewer than twenty open QFC outcomes according to institution size c. Conclusion positions. However, under Part 371 the and business lines. Among the twenty The economic literature on financial records do not necessarily need to be 96 large companies (excluding Lehman asset fire sales maintains that such maintained in a standardized format, Brothers), cumulative abnormal stock events are more systemically harmful but must be maintained in a format that price returns were highly significantly when occurring during industry-wide is acceptable to the FDIC. negative, ranging from -10 percent to -18 periods of distress, making mitigating Based on staff-level discussions with percent over five distinct event these costs a public policy concern. The the PFRAs who are familiar with windows of up to five days in duration. Lehman Brothers bankruptcy and the financial company operations and have However, the effects on the full sample resulting QFC terminations occurred experience supervising financial were not statistically significant, during a crisis period, and might have companies with QFC portfolios, the indicating the immediate contagion imposed widespread private and public Secretary believes that the large effect was limited to large companies. costs. We do not compare the Lehman corporate groups that would be subject The results of both event studies suggest bankruptcy costs to the alternative of to the Proposed Rules should already be the Lehman bankruptcy likely imparted potential resolution costs under a maintaining most or all of the QFC immediate negative external effects on a counterfactual case had Title II of the records required under the Proposed subset of financial companies, causing Dodd-Frank Act been in effect at the Rules as part of their ordinary course of substantial drops in their market time of the Lehman bankruptcy filing. business. In order for these large valuations. We did not find event corporate groups to effectively manage studies specifically assessing market 3. Baseline their QFC portfolios, they need to have impacts on non-financial firms. The FDIC promulgated 12 CFR part robust recordkeeping systems in place. Domestic Public Support: Federal 371, Recordkeeping Requirements for For example, large corporate groups that Reserve Facility. The Federal Reserve Qualified Financial Contracts (‘‘Part trade derivatives out of several distinct provided substantial liquidity to the 371’’), pursuant to section 11(e)(8)(H) of legal entities need to have detailed markets during the 2007–2009 period. the FDIA.98 The FDIC’s QFC records, including counterparty Fleming and Sarkar (2014) consider the recordkeeping rule applies to insured identification, position-level data, depository institutions which are in a collateral received and posted, and 93 Still, we caution that event study results may troubled condition, and was contractual requirements, in order to produce ‘‘noisy’’ signals. For example, attribution is effectively manage their portfolio, problematic as the period surrounding the Lehman promulgated to enable the FDIC as collapse was a particularly active one with nearly receiver to make an informed decision perform on contracts, and monitor risks. two dozen significant economic events in as to whether to transfer or retain QFCs However, it is unlikely that these large September 2008. corporate groups are maintaining the 94 and also thereby minimize the potential Johnson, M.A. and Mamun, A. (2012). The QFC records in the standardized format Failure of Lehman Brothers and its Impact on Other for market disruptions that could occur Financial Institutions. Applied Financial with respect to the liquidation of QFC prescribed by the Proposed Rules and as Economics 22: 375–385. portfolios of insured depository set forth in the Appendix to the 95 Dumontaux, N. and Pop, A. (2012). ‘‘Contagion Proposed Rules. Effects in the Aftermath of Lehman’s Collapse: institutions. However, Part 371 does not Measuring the Collateral Damage.’’ University of 4. Evaluation of Alternatives Nantes working paper 2012/27. 97 Congressional Budget Office. (2010). The 96 Large financial companies are defined as those Budgetary Impact and Subsidy Costs of the Federal The Secretary considered alternative with total assets over $1 billion in their last audited Reserve’s Actions During the Financial Crisis. forms of the proposed rules, but believes report before the event date. 98 12 U.S.C. 1821(e)(8)(H). that the current form is the best

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available method of achieving the such ‘‘smaller’’ financial institutions impact on the covered financial regulatory objectives. The assessment of eligible for the end-user exception.101 company and its counterparties, or alternatives below is organized into However, the Secretary determined affiliated financial companies, of the three subcategories: (a) Scope of the that while it is possible that financial FDIC’s decision to transfer, disaffirm or proposed rules; (b) content of records; companies with more than $10 billion repudiate, or retain the QFCs. It must and (c) standardized recordkeeping. and less than $50 billion in total assets also allow the FDIC to assess the potentially would be considered for potential impact that such decisions a. Scope of the Proposed Rules orderly liquidation under Title II, $50 may have on the financial markets as a In developing the definition of a billion was a more appropriate whole. records entity, the Secretary took into threshold. Including all financial The position-level data included in consideration factors such as financial companies with over $10 billion in total Table A–1 to the Appendix is intended company size, risk, complexity, assets would substantially increase the to enable the FDIC to evaluate a records leverage, frequency and dollar amount number of financial companies subject entity’s exposure to its counterparties. of QFCs, and interconnectedness to the to recordkeeping requirements, many of The FDIC would also use these data to financial system, as well as other factors which would likely not be considered evaluate the effects of the receiver’s described herein. The Secretary for orderly liquidation under Title II. A determination to transfer, disaffirm or included the following entities within financial company (including a bank repudiate, or retain QFCs. In addition, the scope of the definition of a records holding company) with total assets of position-level information would assist entity: Financial companies that have at $50 billion or more, is the type of the receiver or any transferee to comply least $50 billion in assets, financial financial company that potentially with the terms of the QFCs and reduce companies that the Council determines would be the most likely to be the likelihood of inadvertent defaults. could pose a threat to U.S. financial considered for orderly liquidation under For example, a unique position stability, and financial companies that Title II. The definition of records entity identifier would allow for the tracking the Council designates as systemically is thus designed to reduce and separation of positions maintained important financial market utilities. recordkeeping burdens on smaller by the records entity. The Secretary believes that the $50 financial companies by only capturing The primary objective of proposed billion asset threshold is a useful means those financial companies with QFC Table A–2 to the Appendix is to identify for identifying entities that are of a positions for which the FDIC is most exposure of the records entity to each sufficient size that they could likely to be appointed as receiver. counterparty and its affiliates, as well as potentially be considered for orderly The Secretary seeks comment on the the exposure that counterparties might liquidation under Title II, and therefore following questions: Is the scope of the have to the records entity. This should be incorporated in the definition Proposed Rules adequate? Should information would enable the FDIC to of a records entity. A $50 billion asset additional or different criteria be used to determine the effects of transfer or threshold has been separately define a records entity? If so, what termination of QFCs with a given established for similar purposes under criteria would be appropriate? For counterparty and the potential risk of the Dodd-Frank Act.99 In particular, the example, should the rules exempt contagion in the financial markets. Council applies a $50 billion threshold certain entities based on the number of Table A–2 would also require as an initial evaluation tool for QFC counterparties, QFC notional comprehensive collateral information, determining whether a nonbank amounts, or QFC mark-to-market values including market value of collateral, financial company could pose a threat as of a particular date? If so, at what location of collateral, and any custodial to the financial stability of the U.S. and levels should such exemptions be set? and segregation arrangements. Collateral should potentially be subject to Should there be any other form of de excess or deficiency positions as well as enhanced prudential standards under minimis exemption from these criteria? collateral thresholds and valuation Title I of the Dodd-Frank Act. Please provide specific explanations of discounts also would need to be The Secretary considered alternative how such criteria would be applied maintained. This information would criteria in developing the definition of together with an explanation of whether enable the FDIC as receiver to evaluate a records entity, such as including such criteria would affect the FDIC’s counterparty relationships and financial companies that have more ability to resolve a QFC portfolio. determine if the receivership would than $10 billion in assets. This benefit from retaining and repudiating threshold, which would have captured b. Content of Records QFCs with certain counterparties. It more financial companies that The Secretary determined, after would also enable the FDIC as receiver potentially might be considered for consulting with the FDIC, that requiring to comply with the requirements of the orderly liquidation under Title II, has each records entity to maintain the data Act by transferring QFC obligations been used in other regulatory included in Tables A–1 through A–4 of together with the related collateral.102 In requirements. For example, the Dodd- the Appendix to the Proposed Rules is addition, it would enable the receiver to Frank Act requires certain financial necessary to assist the FDIC in being identify excess collateral of companies with more than $10 billion able to effectively exercise its rights counterparties for possible return in total consolidated assets to conduct under the Act and fulfill its obligations should the contracts be terminated after annual stress tests.100 Additionally, the under section 210(c)(8), (9), or (10) of the one business day stay. CFTC’s final rule on the end-user the Act. To facilitate the resolution of Table A–3 to the Appendix would exemption to the clearing requirement QFC portfolios, the FDIC needs to require the maintenance of legal for swaps exempts banks, savings analyze such data and, upon being agreement data for each QFC agreement associations, farm credit system appointed as receiver under Title II, or master agreement between each institutions, and credit unions with total effectuate decisions with respect to the records entity and counterparty. assets of $10 billion or less from the exercise of such rights. The information Because the receiver has a limited definition of ‘‘financial entity,’’ making must be sufficient to allow the FDIC to period of time in which to evaluate QFC estimate the financial and operational provisions, the availability of the legal 99 See e.g., 12 U.S.C. 5365(a). 100 12 U.S.C. 5365(i)(2). 101 17 CFR 39.6(d). 102 12 U.S.C. 5390(c)(9)(A)(i)(IV).

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agreements in fully searchable are necessary to enable the FDIC as would assist the FDIC in its role as electronic form is of utmost importance. receiver to evaluate the treatment of receiver with respect to a covered In particular, the identification of any QFCs under such contracts, including financial company? If so, please explain support by or linkage to a parent entity any support by or linkage to a parent the rationale for why such additional or affiliate and the identification of any entity or affiliate and the identification records or data is necessary. transfer restrictions and non-standard of any transfer restrictions and non- c. Standardized Recordkeeping covenants would enable the FDIC as standard covenants. Table A–4 includes receiver to evaluate the treatment of additional collateral detail data, such as The Secretary determined that QFCs under such contracts in an orderly the collateral jurisdiction, the collateral requiring records entities to have the liquidation of the records entity or its segregation status, and whether the capacity to maintain and generate QFC affiliated financial company under Title collateral may be subject to re- records in the uniform, standardized II of the Act. hypothecation by the counterparty. format set forth in the Appendix to the Table A–4 to the Appendix would These additional data are necessary to Proposed Rules is necessary to assist the require each records entity to maintain enable the FDIC to assess risks FDIC in being able to effectively collateral detail data both with respect associated with the collateral and exercise its rights under the Act and to collateral received and with respect improve the FDIC’s ability to analyze fulfill its obligations under section to collateral posted on a counterparty- various QFC transfer or termination 210(c)(8), (9), or (10) of the Act. by-counterparty basis. The data in this scenarios. For example, for cross-border Specifically, when the FDIC is Table, together with the data in Table transactions, this information would appointed as receiver of a covered A–2, would allow the FDIC to better help the FDIC evaluate the availability financial company, the covered understand the QFC portfolio risk, and of collateral in different jurisdictions financial company’s QFC counterparties to model various QFC transfer or and the related close-out risks if the are prohibited from exercising their termination scenarios. receiver cannot arrange for the transfer contractual right of termination until 5 As indicated above, the proposed of QFC positions under local law. p.m. (eastern time) on the first business recordkeeping requirements of the Because the information requirements day following the date of appointment. Proposed Rules are similar to the FDIC’s of the Proposed Rules are more After its appointment as receiver and Part 371 but the information extensive than Part 371, the Secretary, prior to the close of the aforementioned requirements of the Proposed Rules are in consultation with the FDIC, has also 5 p.m. deadline, the FDIC has three more extensive. The Secretary proposed to allow for a longer options in managing a covered financial considered reducing recordkeeping compliance period than the compliance company’s QFC portfolio. Specifically, burden by aligning the requirements period set forth under Part 371. An with respect to all of the covered more closely with those of the FDIC’s insured depository institution subject to financial company’s QFCs with a Part 371. However, the Secretary the FDIC’s Part 371 recordkeeping particular counterparty and all its determined, in consultation with the requirements must comply within 60 affiliates, the FDIC may: (1) Transfer the FDIC, that additional recordkeeping days of notification.103 Under the QFCs to a financial institution, beyond that required by Part 371 would Proposed Rules, a financial company including a bridge financial company be needed for the FDIC to resolve a would be required to comply with the established by the FDIC; (2) retain the financial company with significant QFC recordkeeping requirements within 270 QFCs within the receivership and allow positions under Title II. In particular, days of becoming a records entity. the counterparty to exercise contractual the FDIC will need this additional The Secretary seeks comment on the remedies to terminate the QFCs; or (3) information to analyze the QFC following questions: Are any of the retain the QFCs within the receivership, portfolio and determine whether to proposed recordkeeping requirements disaffirm or repudiate the QFCs, and transfer, disaffirm or repudiate, or retain not necessary or appropriate to assist pay compensatory damages. If the FDIC the QFCs during the one business day the FDIC as receiver? Please include the transfers the QFCs to a financial stay and to perform the obligations rationale for why these requirements are institution, the counterparty may not under the QFCs, including meeting not necessary or appropriate. Should the terminate the QFCs solely by reason of collateral requirements. For example, determination on whether some records the covered financial company’s the proposed position-level and are not necessary or appropriate be financial condition or insolvency or the counterparty-level data included in based on the type of records entity? appointment of the FDIC as receiver. If Tables A–1 and A–2 to the Appendix Would any of the contemplated records the FDIC does not transfer the QFCs and would require recordkeeping for inter- (including any of the data fields in the does not repudiate such QFCs, the affiliate transactions, which was not appendix) or data result in unnecessary counterparty may exercise contractual included in Part 371. Recordkeeping burden on records entities? Are there remedies to terminate the QFCs and with respect to inter-affiliate QFCs is ways to further align the recordkeeping assert claims for payment from the necessary to enable the FDIC to quickly requirements set forth herein with the covered financial company and may understand all QFC linkages in a requirements of other recordkeeping have rights to liquidate the collateral corporate group and to evaluate the and reporting rules to reduce regulatory pledged by the covered financial potential systemic effects of FDIC burden (e.g., the respective CFTC and company. decisions. Table A–2, the counterparty SEC regulations on swap and security- The Secretary considered reducing collateral data, is also more extensive based swap data recordkeeping and recordkeeping burdens by requiring the than the FDIC’s Part 371 due to the reporting?) If so, how should this maintenance of non-standardized inclusion of pending margin calls in the burden be reduced? Do the proposed records. After consulting with the FDIC, calculation of the excess or deficiency of recordkeeping requirements the Secretary determined that this the counterparty’s collateral. This will appropriately measure and identify the alternative may reduce the FDIC’s assist the FDIC in meeting the size and complexity of entities that flexibility in managing the QFC obligations under the QFCs, including likely qualify as records entities? Are portfolio, increase systemic risk, and certain clearing organization margin there any additional records or data that impair the FDIC’s ability as receiver to calls. The Table A–3 legal agreements, manage the assets of the covered which were not included in Part 371, 103 12 CFR 371.1(c). financial company in terms of

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maximizing the value of the assets in differentiation among financial be mitigated by the fact that records the context of orderly liquidation.104 For companies by taking into consideration, entities should be maintaining most of example, in the absence of updated and among other things, their size and risk. the QFC records required by the standardized information, it is possible The Secretary is exercising this Proposed Rules as part of their ordinary that QFCs could be transferred to a discretion to exclude from the scope of course of business. However, the bridge financial company, when leaving the Proposed Rules financial companies Secretary recognizes that the Proposed them in the receivership would be a that do not meet one of the following Rules’ standardized form and better course of action. If such QFCs three criteria: (1) Are designated availability requirements may impose were transferred to the bridge financial pursuant to section 113 of the Act (12 costs and burdens on records entities. In company, the bridge financial company U.S.C. 5323) to be a nonbank financial order to comply with the Proposed would be required to perform the company that could pose a threat to U.S. Rules, each of the approximately 140 obligations under the QFCs, including financial stability; (2) are designated large corporate groups that the Secretary meeting collateral requirements, and, to pursuant to section 804 of the Act (12 estimates would be subject to the the extent set forth in the QFCs, would U.S.C. 5463) as a financial market utility recordkeeping requirements will need to be liable for losses under the that is, or is likely to become, have network infrastructure to maintain contracts.105 Alternatively, QFCs could systemically important; or (3) have total data in the required format. The be left in the receivership, when transfer assets equal to or greater than $50 Secretary expects that this will likely to a solvent financial institution or a billion. Since the Act’s enactment in impose one-time initial costs on each bridge financial company would be a 2010 through 2013, eleven financial large corporate group in connection better course of action. In such a case, companies have been designated by the with necessary updates to their the lack of uniform data may, among Council under categories (1) and (2), recordkeeping systems, such as systems other things, prevent the FDIC from and the Secretary’s understanding is development or modifications. The determining the value of any collateral that each of those designated companies initial costs to set up network pledged to secure the QFCs and from has revenues in excess of the Small infrastructure will depend on whether a considering the impact QFC Business Administration’s revised size large corporate group already holds and terminations may have on broader standards for small entities. As a result, maintains QFC data in an organized financial stability. the Proposed Rules would only apply to electronic format, and if so, whether the However, while the Proposed Rules large corporate groups (including a large data currently reside on different specify a standardized recordkeeping corporate group’s affiliated financial systems rather than on one centralized format, the Secretary also recognizes the companies, regardless of their size, if system. Large corporate groups may need to provide flexibility for possible the affiliated financial company is a need to amend internal procedures, alternate recordkeeping formats if they party to an open QFC or guarantees, reprogram systems, reconfigure data are sufficient to meet the needs of the supports or is linked to an open QFC of tables, and implement compliance FDIC. The Proposed Rules provide the an affiliate and is not an ‘‘exempt processes. Moreover, they may need to Secretary with the discretion to grant entity’’ under the Proposed Rules). standardize the data and create tables to conditional or unconditional The types of financial companies that match the format required by the exemptions from compliance with one would qualify as records entities under Proposed Rules. However, the Secretary or more of the requirements of the the Proposed Rules include: Bank believes that the large corporate groups Proposed Rules, which could include holding companies, savings and loan that would be subject to the Proposed exemptions to the standardized holding companies, broker-dealers, Rules are likely to rely on existing recordkeeping format. For example, a derivatives clearing organizations, centralized systems for recording and conditional exemption could be granted payment and settlement systems, and reporting QFC activities to perform most if an alternate format, such as one used registered clearing agencies. The of the recordkeeping and reporting for a separate recordkeeping Secretary proposes that the requirements set forth herein. The entity requirement, would still allow the FDIC recordkeeping requirements in the within the corporate group responsible to manipulate and analyze the data to Proposed Rules apply to all affiliated for this centralized system will likely determine the effect of FDIC decisions financial companies in a large corporate operate and maintain a technology under Title II with respect to a covered group that meet the definition of records shared services model with the majority financial company’s QFC portfolio and entity, regardless of their size, because of technology applications, systems, and enable the FDIC to fulfill its obligations a broad exemption for small entities under section 210(c)(8), (9), or (10) of data shared by the affiliated financial could significantly impair the FDIC’s the Act within the narrow time window companies within the large corporate ability to enforce certain QFCs of afforded by section 210(c)(10) of the group. Therefore, the Proposed Rules affiliates of covered financial companies Act. will likely impose the most significant under section 210(c)(16) of the Act costs on the entities responsible for the 5. Affected Population within the narrow time window centralized systems within the large Instead of requiring all financial afforded by section 210(c)(10) of the corporate group, and not on the companies to maintain records with Act. affiliated financial companies. The affiliated financial companies will likely respect to QFCs, the Secretary is 6. Assessment of Potential Costs and have much lower costs because they can limiting the scope of the Proposed Rules Benefits to a smaller subset of financial utilize and rely upon the technology companies. Discretion to do so is a. Potential Costs and network infrastructure operated and afforded under section 210(c)(8)(H)(iv) Based on discussions with the PFRAs maintained by the entity responsible for of the Act, which authorizes who are familiar with financial the centralized system within the large company operations and have corporate group. 104 12 U.S.C. 5390(a)(1)(B)(iv). experience supervising financial It is estimated that the initial 105 See FDIC article, ‘‘The Orderly Liquidation of companies with QFC portfolios, the recordkeeping burden for all records Lehman Brothers Holdings Inc. under the Dodd- entities will be approximately 62,063 Frank Act’’ (2011), p.8, available at http://www.fdic. Secretary believes that the costs of gov/regulations/reform/lehman.html. implementing the Proposed Rules may hours with a total one-time initial cost

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of approximately $8,030,599.106 The financial system and systemic risk, and would only be realized upon such total estimated annual recordkeeping the recent financial crisis demonstrated authority being exercised. In addition, burden for all records entities will be that the management of QFC positions implementation of the Dodd-Frank Act approximately 28,463 hours with a total can be an important element of a will: (1) Subject large, interconnected annual cost of approximately resolution strategy which, if not financial companies to stronger $2,077,799. The estimated average handled properly, may magnify market supervision, and as a result, reduce the hourly wage rate for recordkeepers to instability. The recordkeeping likelihood of their failure; and (2) blunt comply with the initial and annual requirements of the Proposed Rules are the impact of any such failure on U.S. recordkeeping burden is approximately designed to ensure that the FDIC, as financial stability and the economy. For $73 per hour based in part on the U.S. receiver of a covered financial company, example, bank holding companies with Department of Labor, Bureau of Labor will have comprehensive information total consolidated assets of $50 billion Statistics’ national occupational about the QFC portfolio of such or more and nonbank financial employment statistics and wage financial company subject to orderly companies supervised by the Board are statistics, dated May 2012.107 resolution, and enable the FDIC to carry subject to supervisory and company-run With regard to reporting burdens out the rapid and orderly resolution of stress tests to help the Board and the under the Proposed Rules, a records a financial company’s QFC portfolio in company measure the sufficiency of entity may request in writing an the event of insolvency, for example, by capital available to support the extension of time with respect to transferring QFCs to a bridge financial company’s operations throughout compliance with the recordkeeping company within the narrow time periods of stress.109 These financial requirements or a specific exemption window afforded by the Act. Given the companies also are or will be subject to from the recordkeeping requirements. short time frame for FDIC decisions more stringent prudential standards, The total estimated annual reporting regarding a QFC portfolio of significant including risk-based capital and burden under the Proposed Rules will size or complexity, the Proposed Rules liquidity requirements, which will make be approximately 3,500 hours with a would require the use of an updated and their failure less likely. However, if such total annual cost of approximately standardized format to allow the FDIC a financial company does fail, the $542,500. The estimated average hourly to process the large amount of QFC implementation of the Dodd-Frank Act rate for recordkeepers to comply with information quickly. In the absence of is also intended to ensure that its failure the annual reporting burden is updated and standardized information, and resolution under the Bankruptcy approximately $155 per hour based on it is conceivable that, for example, the Code may occur without adverse effects the U.S. Department of Labor, Bureau of FDIC could leave QFCs in the on U.S. financial stability. For example, Labor Statistics’ national occupational receivership when transferring to a each of these large bank holding employment statistics and wage bridge financial company or other companies and nonbank financial statistics, dated May 2012.108 solvent financial institution would have companies supervised by the Board will The Secretary seeks comment on been the preferred course of action had have in place resolution plans/‘‘living whether the cost estimates are better information been available. wills’’ to facilitate their rapid and reasonable. Specifically, if the FDIC does not orderly resolution under the Bankruptcy b. Potential Benefits transfer the QFCs and does not Code in the event of material financial repudiate such QFCs, counterparties distress or failure.110 The Title II orderly As noted earlier, QFCs tend to may terminate the QFCs and assert liquidation authority will only be used increase the interconnectedness of the claims for payment from the covered to resolve a failing financial company if financial company and may have rights its resolution under the Bankruptcy 106 This amount includes $3,500,000 in systems development/modification costs. Specifically, based to liquidate the collateral pledged by the Code would have serious adverse effects in part on staff-level discussions with several of the covered financial company. Because a on U.S. financial stability. In addition, PFRAs, it is expected that each of the large, interconnected financial company there are substantial procedural approximately 140 large corporate groups will incur can often hold very large positions in safeguards to prevent the unwarranted approximately $25,000 in systems development/ modification costs, including the purchase of QFCs involving numerous use of the Title II orderly liquidation computer software, with a total cost of counterparties, the disorderly authority. approximately $3,500,000. These costs will likely unwinding of QFCs, including the rapid Nevertheless, one way to gauge the be borne by the entity responsible for maintaining liquidation of collateral, could cause potential benefits of the Proposed Rules the centralized system within each large corporate group. Additionally, the total estimated initial cost severe negative consequences for U.S. is to examine the effect of the recent for large corporate group respondents to comply financial stability. The FDIC as receiver financial crisis on the real economy and with the initial recordkeeping burden is $3,679,200, may also wish to make sure that how the Title II orderly liquidation based on the following formula: Initial burden affiliates of the covered financial authority as a whole will help reduce hours multiplied by the average hourly wage rate for recordkeepers (50,400 hours multiplied by $73/ company continue to perform their QFC the probability or severity of a future hour). The total estimated initial cost for affiliated obligations in order to preserve the financial crisis. For example, in a 2013 financial company respondents to comply with the critical operations of the covered Government Accountability Office initial recordkeeping burden is $851,399, based on financial company and its affiliates. In (GAO) report, GAO stated that there is the following formula: Initial burden hours multiplied by the average hourly wage rate for such cases, the FDIC may need to some research that suggests that U.S. recordkeepers (11,663 hours multiplied by $73/ arrange for additional liquidity, support output losses associated with the 2007– hour). or collateral to the affiliates to enable 2009 financial crisis could range from 107 The $73 hourly wage rate is based on the them to meet collateral obligations and several trillion dollars to over $10 average hourly wage rates for senior programmers, generally perform their QFC obligations. trillion.111 GAO also surveyed financial programmer analysts, senior system analysts, compliance managers, compliance clerks, directors While there could be significant of compliance, and compliance attorneys that will benefits from the Proposed Rules, such 109 12 U.S.C. 5365(i); 12 CFR part 252. conduct the recordkeeping. benefits are difficult to quantify, as the 110 12 U.S.C. 5365(d). 108 The $155 hourly wage rate is based on the 111 Government Accountability Office, Financial average hourly wage rates for compliance managers, Proposed Rules are only one component Regulatory Reform: Financial Crisis Losses and directors of compliance, and compliance attorneys of the orderly liquidation authority and Potential Impacts of the Dodd-Frank Act, GAO–13– that will conduct the reporting. the benefits of the Proposed Rules 180 at 15–16 (January 16, 2013).

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market regulators, academics, and additional, less, or different data is that becomes a records entity subject to industry and public interest groups who necessary or appropriate. The Secretary this part after the effective date, such identified, inter alia, the more stringent seeks comment on the following records entity must comply with prudential standards discussed above question: Is it appropriate for the § 148.3(a)(3) within 60 days of becoming and the orderly liquidation authority as Secretary to conduct the ‘‘lookback a records entity and with all other not only enhancing financial stability, at review’’ not later than seven years after requirements of this part within 270 least in principle, but also helping to the effective date of the rule, or would days from first becoming subject to this reduce the probability or severity of a a different period be preferable? part. future crisis.112 (2) Subsequent compliance date. If a However, as discussed above, even if Text of the Proposed Rules financial company ceases to be a records the benefits of preventing future List of Subjects in 31 CFR Part 148 entity subject to this part after the initial financial crises are significant, it is Reporting and recordkeeping compliance dates, and remains so for at difficult to quantify what portion of requirements. least one year (calculated on a rolling such benefits would be attributable to 12-month basis), it is no longer required any single provision of the Dodd-Frank Authority and Issuance to comply with this part. However, if at Act, let alone those benefits directly For the reasons set forth in the any time after the one-year period, such attributable to the Proposed Rules. For preamble, the Department of the financial company again becomes a example, GAO also noted that such Treasury proposes to add part 148 to 31 records entity subject to this part, it benefits are not assured and will depend CFR chapter I to read as follows: must comply with all of the on, among other things, how regulators requirements of this part no later than implement the provisions.113 In Part 148—Qualified Financial 90 days after becoming subject to this addition, the benefits would not be Contracts Recordkeeping Related to part. attributable solely to the Proposed the FDIC Orderly Liquidation Authority Rules, as a number of other reforms are § 148.2 Definitions. also intended to reduce the probability Sec. For purposes of this part: and severity of future financial crises. 148.1 Scope, purpose, effective date, and Affiliate means any entity that Finally, as discussed above, the benefits compliance dates. controls, is controlled by, or is under associated with the Proposed Rules 148.2 Definitions. common control with a financial 148.3 Form, availability and maintenance of would only be realized if the Title II records. company or counterparty. orderly liquidation authority is 148.4 Content of records. Control. An ‘‘entity controls another exercised and, even if utilized, the entity’’ if it: Proposed Rules are only one component Appendix to Part 148—File Structure for (1) Directly or indirectly or acting of the orderly liquidation authority and Qualified Financial Contract Records through one or more other persons the resulting benefits. owns, controls, or has the power to vote Authority: 31 U.S.C. 321(b) and 12 U.S.C 25 percent or more of any class of voting 7. Retrospective Analysis 5390(c)(8)(H). securities of another entity; Executive Order 13563 also directs PART 148—QUALIFIED FINANCIAL (2) Controls in any manner the the Secretary to develop a plan, CONTRACTS RECORDKEEPING election of a majority of the directors or consistent with law and resources and RELATED TO THE FDIC ORDERLY trustees of another entity; or regulatory priorities, to conduct a LIQUIDATION AUTHORITY (3) Must consolidate another entity for periodic retrospective analysis of financial or regulatory reporting significant regulations to determine § 148.1 Scope, purpose, effective date, and purposes. whether such regulations should be compliance dates. Corporate group means an entity and modified, streamlined, expanded, or (a) Scope. This part applies to each all affiliates of that entity. repealed so as to make the regulations financial company that qualifies under Counterparty means any natural more effective and less burdensome. the definition of ‘‘records entity’’ set person or entity (or separate non-U.S. The Secretary expects to conduct a forth in § 148.2 of this part. branch of any entity) that is a party to retrospective analysis not later than (b) Purpose. This part establishes a QFC with a records entity, including seven years after the effective date of the recordkeeping requirements with any affiliate or any non-U.S. branch of rule. This review will consider whether respect to qualified financial contracts such records entity if such affiliate or the recordkeeping requirements are for a records entity in order to assist the branch is a party to a QFC with such necessary or appropriate to assist the Federal Deposit Insurance Corporation records entity, or is a party to a QFC that FDIC as receiver in being able to (‘‘FDIC’’) as receiver for a covered is guaranteed or supported by a records exercise its rights under the Act and financial company (as defined in 12 entity. fulfill its obligations under section U.S.C. 5381(a)(8)) in being able to Exempt entity means: 210(c)(8), (9), or (10) of the Dodd-Frank exercise its rights and fulfill its (1) An insured depository institution Act, and may result in proposed obligations under 12 U.S.C. 5390(c)(8), as defined in 12 U.S.C. 1813(c)(2); amendments to the rule. For example, (9), or (10). (2) A subsidiary of an insured the Secretary will review whether the (c) Effective date. This part shall depository institution that is not a data set forth in Tables A–1 through A– become effective 60 days after functionally regulated subsidiary as 4 to the Appendix are necessary or publication of the final rule in the defined in 12 U.S.C. 1844(c)(5), a appropriate to assist the FDIC as Federal Register. security-based swap dealer as defined in receiver, and/or whether maintaining (d) Compliance dates—(1) Initial 15 U.S.C. 78c(a)(71) or a major security- compliance dates. A records entity must based swap participant as defined in 15 112 Id. at 33–34. GAO added that the experts it comply with § 148.3(a)(3) on the U.S.C. 78c(a)(67); or surveyed had differing views on these provisions effective date and with all other (3) A financial company that is not a but that many expect some or all of the provisions to improve the financial system’s resilience to requirements of this part within 270 party to a QFC and controls only exempt shocks. days from first becoming subject to this entities as defined in paragraphs (1) and 113 Id. at 33. part. In the case of a financial company (2) of this definition.

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Financial company has the meaning any regulations promulgated financial company for the most recent set forth in 12 U.S.C. 5381(a)(11). thereunder. fiscal year end. Guarantees, supports and guaranteed Position means the rights and SDR means any swap data repository or supported mean to: obligations of a party to an individual or security-based swap data repository (1) Guarantee, indemnify, or transaction under a QFC. registered with the CFTC or the SEC and undertake to make any loan or advance; Primary financial regulatory agency any other similar data repository (2) Undertake to make capital means, with respect to each financial established to enable reporting of QFC contributions; or company, each primary financial data. (3) Be contractually obligated to regulatory agency as specified for such Secretary means the Secretary of the provide any other financial assistance. financial company in subparagraphs Treasury or the Secretary’s designee. Linked. A QFC is ‘‘linked’’ to a (A), (B), (C), and (E) of 12 U.S.C. Subsidiary means any company that financial company if it contains a 5301(12). is controlled by another company. specified financial condition clause that Qualified financial contract or ‘‘QFC’’ means any qualified financial contract § 148.3 Form, availability and maintenance specifies such financial company. A of records. ‘‘specified financial condition clause’’ defined in 12 U.S.C. 5390(c)(8)(D), including without limitation, any (a) Form and availability—(1) means any provision of any QFC Electronic records. A records entity is (whether expressly stated in the QFC or ‘‘swap’’ defined in section 1a(47) of the Commodities Exchange Act (7 U.S.C. required to maintain all records incorporated by reference in any other described in section 148.4 in electronic contract, agreement or document) that 1a(47)) and in any rules or regulations issued by the Commodity Futures form and be able to generate data in the permits a contract counterparty to format set forth in Tables A–1 through terminate, accelerate, liquidate or Trading Commission (CFTC) pursuant to such section; any ‘‘security-based A–4 of the appendix to this part. Such exercise any other remedy under any records shall be capable of being QFC or other contract to which an swap’’ defined in section 3(a) of the Securities Exchange Act of 1934 (15 transmitted electronically to the records affiliate of the financial company is a entity’s primary financial regulatory party or to obtain possession or exercise U.S.C. 78c(a)) and in any rules or regulations issued by the Securities and agencies and the FDIC. All affiliated control over any property of such records entities in a corporate group affiliate or affect any contractual rights Exchange Commission (SEC) pursuant to such section; and any securities must be able to generate data in the of such affiliate directly or indirectly format set forth in Tables A–1 through based upon or by reason of: contract, commodity contract, forward contract, repurchase agreement, swap A–4 of the appendix to this part in the (1) A change in the financial same data format and use the same condition or the insolvency of a agreement, and any similar agreement that the FDIC determines by regulation, unique counterparty identifiers to financial company; enable the aggregation of data both: (2) The appointment of the FDIC as resolution, or order to be a qualified financial contract as provided in 12 (i) For all affiliated records entities in receiver for the financial company or the corporate group; and any actions incidental thereto, U.S.C. 5390(c)(8)(D). Records entity—(1) Records entity (ii) By counterparty, for all records including, without limitation, the filing entities in a corporate group. of a petition seeking judicial action with means a financial company that: (i) Is not an exempt entity; (2) Position records. A records entity respect to the appointment of the FDIC (ii) Is a party to an open QFC or must maintain records for all QFCs to as receiver for the financial company or guarantees, supports or is linked to an which it is a party, including inter- the issuance of recommendations or open QFC; and affiliate QFCs to which it is a party. A determination of systemic risk; (iii) (A) Has been determined records entity must also maintain (3) The exercise of rights or powers by pursuant to 12 U.S.C. 5323 to be an records for all QFCs that are guaranteed the FDIC as receiver for the financial entity that could pose a threat to the or supported by such records entity. company, including, without limitation, financial stability of the United States; (3) Point of contact. A records entity the appointment of the Securities (B) Has been designated pursuant to must provide to each of its primary Investor Protection Corporation (SIPC) 12 U.S.C. 5463 as a financial market financial regulatory agencies and the as trustee in the case of a financial utility that is, or is likely to become, FDIC a point of contact at the records company that is a covered broker or systemically important; entity who is responsible for dealer and the exercise by SIPC of its (C) Has total assets equal to or greater recordkeeping under this part, by rights and powers as trustee; than $50 billion; or written notice to its primary financial (4) The transfer of assets or liabilities (D) Is: regulatory agencies and the FDIC on the to a bridge financial company or other (1) A party to an open QFC or effective date of this part and, thereafter, qualified transferee; guarantees, supports or is linked to an within 30 days of any change in the (5) Any actions taken by the FDIC as open QFC of an affiliate; and point-of-contact information. receiver for the financial company to (2) A member of a corporate group in (4) Access to records. A records entity effectuate the liquidation of the which at least one financial company that is regulated by a primary financial financial company; or meets the criteria under paragraphs regulatory agency shall be capable of (6) Any actions taken by or on behalf (1)(iii)(A), (B), or (C) of this definition. providing to such primary financial of the bridge financial company to (2) For the purpose of this definition, regulatory agency, within 24 hours of operate and terminate the bridge ‘‘total assets’’ means the total assets request, the records specified in § 148.4. financial company, including the reported in the most recent year-end (b) Maintenance and updating—(1) dissolution, conversion, merger or audited consolidated statement of Daily updating. A records entity shall termination of the bridge financial financial condition of the applicable maintain the capacity to generate the company or actions incidental or related financial company filed with its primary data in the format set forth in Tables A– thereto. Without limiting the foregoing, financial regulatory agency, or, for 1 through A–4 of the appendix to this a specified financial condition clause financial companies not required to file part, based on the previous end-of-day includes a ‘‘walkaway clause’’ as such statements, the total assets shown records and values. Data that are more defined in 12 U.S.C. 5390(c)(8)(F)(iii) or on the consolidated balance sheet of the current than previous end-of-day

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records and values are deemed to satisfy entity may request an extension of time each counterparty and for the this requirement. by submitting a written request to the counterparty’s corporate group as (2) Records maintenance. The records Department of the Treasury, at least 30 necessary to determine the effects of required under this part may be days prior to the deadline for its potential QFC transfers or terminations, maintained on behalf of the records compliance with the requirements of including the effects of any ring-fencing entity by any affiliate of such records this part. The written request for an with regard to any such non-U.S. branch entity, or any third-party service extension must contain: or division. provider that maintains the records in (i) A statement of the reasons why the (ii) All records entities in a corporate the ordinary course of business. records entity cannot comply by the group must use the same unique (3) Record retention. Unless otherwise deadline for compliance; and counterparty identifier for each indicated in this part, the requirement (ii) A plan for achieving compliance counterparty. on a records entity to maintain records during the requested extension period. (7) A list of all affiliates of the records applies to records and values with entity that are parties to open QFCs or respect to open QFC positions and any § 148.4 Content of records. guarantee, support or are linked to open other QFC positions needed to generate (a) All records entities. Subject to QFCs, as well as an organizational chart reports based on end-of-day records and § 148.3(c), a records entity must that explains the affiliate relationships values for at least the five business days maintain all records required under this for such records entities. Such list shall prior to the date of a request. part, including: specify which affiliates are (c) Exemptions—(1) General (1) The position-level data listed in counterparties to inter-affiliate QFCs exemptions. Upon receipt of a written Table A–1 in the appendix of this part. with such records entity for which the recommendation from the FDIC, (2) The counterparty collateral data records entity is required to maintain prepared in consultation with the listed in Table A–2 in the appendix of records pursuant to this part. Such list primary financial regulatory agencies for this part. shall include the unique counterparty the applicable records entities that takes (3) The legal agreements information identifier for each affiliated into consideration each of the factors listed in Table A–3 in the appendix of counterparty in the records entity’s referenced in 12 U.S.C. this part. corporate group as set forth in paragraph 5390(c)(8)(H)(iv), the Secretary may (4) The collateral detail data listed in (a)(6) of this section. grant conditional or unconditional Table A–4 in the appendix of this part. (8) Full-text searchable copies of all exemptions from compliance with one (5) Any written data or information agreements that govern QFC or more of the requirements of this part that is not listed in Tables A–1 through transactions between the records entity by issuing an exemption to one or more A–4 in the appendix to this part that the and each counterparty, including types of records entities. In determining records entity is required to provide to without limitation, master agreements whether to grant a general exemption, an SDR, the CFTC, the SEC or any non- and annexes, supplements, or other the Secretary will consider any factors U.S. regulator with respect to any QFC, modifications with respect to the deemed necessary or appropriate by the for any period that such data or agreements. Secretary, including whether information is required to be maintained (9) Copies of the active or ‘‘open’’ application of one or more requirements by its primary financial regulatory confirmations, if the position has been of this part is not necessary to achieve agency. confirmed or the trade acknowledgment the purpose of this part. (6)(i) For each counterparty that is not if the position has not been confirmed. (2) Specific exemptions. Upon written an affiliate of the records entity, a list (10) Full-text searchable copies of all request by a records entity, the FDIC specifying all other counterparties that credit support documents including, but may recommend, after taking into are members of the same corporate not limited to, any credit support consideration each of the factors group as the counterparty and that are annexes, any guarantees, keep-well referenced in 12 U.S.C. parties to open QFCs with the records agreements, or net worth maintenance 5390(c)(8)(H)(iv), that the Secretary entity or guarantee, support or are agreements that are relevant to one or grant a conditional or unconditional linked to such QFCs, as well as an more QFCs. specific exemption from compliance organizational chart that explains the (11) Full-text searchable copies of all with one or more of the requirements of affiliate relationships of such assignment or novation documents, if this part. Upon receipt of a written counterparties. Such list shall include applicable, including documents which recommendation from the FDIC, the unique counterparty identifier for confirm that all required consents, prepared in consultation with the each counterparty in the counterparty’s approvals, or other conditions precedent primary financial regulatory agencies for corporate group. The unique for such assignment or novation have the records entity, the Secretary may counterparty identifier shall be based on been obtained or satisfied. grant a conditional or unconditional the global legal entity identifier issued (12) A list of vendors directly specific exemption from compliance by: supporting the QFC-related activities of with one or more requirements of this (A) Utilities endorsed by the the records entity and the vendors’ part by issuing an exemption to such Regulatory Oversight Committee, whose contact information. records entity. In determining whether charter was set forth by the Finance (13) Risk metrics used to monitor the to grant a specific exemption, the Ministers and Central Bank Governors QFC portfolio, including without Secretary will consider any factors of the Group of Twenty and the limitation, credit risk, market risk and deemed necessary or appropriate, Financial Stability Board; or liquidity risk measures. including whether application of one or (B) Utilities endorsed or otherwise (14) Risk manager contact information more requirements of this part is not governed by the Global LEI Foundation, for each portfolio that includes QFCs. necessary to achieve the purpose of this but must include additional identifiers Appendix to Part 148—File Structure part. in the event one counterparty transacts for Qualified Financial Contract (3) Extensions of time. The Secretary, with the records entity as separate non- Records in consultation with the FDIC, may U.S. branches or divisions, as grant one or more extensions of time for appropriate to enable the FDIC to In maintaining the records required under compliance with this part. A records aggregate or disaggregate the data for this part, a records entity may leave an entry

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blank or insert N/A for the data fields that do not apply to a given QFC transaction or agreement.

TABLE A–1—POSITION-LEVEL DATA [For a records entity]

Field Example Data application

Unique position identifier ...... 20058953 ...... Information needed to readily track and distin- guish positions. Unique counterparty identifier 1 of records entity 999999999 ...... Information needed to review position-level data by records entity. Unique counterparty identifier of counterparty to 888888888 ...... Information needed to identify and, if nec- records entity (non-reporting party). essary, communicate with counterparty. Legal name of counterparty (non-reporting John Doe & Co...... Information needed to identify and, if nec- party). essary, communicate with counterparty. Industry code (GIC or SIC code) of 2096 ...... Information needed to analyze knock-on ef- counterparty to records entity (non-reporting fects by industry. party). Internal booking location identifier (for head- XY12Z ...... Information needed to determine the headquarters or branch where the position is quarters or branch where the position is booked). booked, including the system on which the trade is booked, as well as the system on which the trade is settled. Unique booking unit or desk identifier ...... xxxxxx ...... Additional information to help determine purpose of position. Unique booking unit or desk description ...... North American Trading Desk ...... Additional information to help determine purpose of position. Contact information of person responsible for John Smith x-xxx-xxx-xxxx jsmith@do- Information needed to maintain a point of con- position, including name, phone number and main.com. tact with the records entity. e-mail address. Unique master agreement or governing docu- xxxxxx ...... Information needed to identify master agree- mentation identifier. ment or governing documentation. Form of master agreement or governing docu- ISDA 1992 ...... Information needed to determine whether a mentation. standard form agreement governs the transaction. Unique master netting agreement identifier ...... xxxxxxxxx ...... Information needed to identify, and determine effects of, any cross-product and other master netting agreements (sometimes called ‘‘master master agreements’’). Name of master netting agreement ...... [Agreement name] ...... Information needed to identify, and determine effects of, any cross-product and other master netting agreements. Position standardized asset class (or QFC Credit; equity; foreign exchange; interest rate Information needed to determine the extent to asset class of the reference asset or interest (including cross-currency); other com- which the entity is involved in any particular rate). modity; securities repurchase agreement; QFC market. securities lending; loan repurchase agreement. Position standardized contract type (or QFC Mortgage loan repurchase agreement ...... Information needed to determine the extent to contract type of the reference asset or inter- which the entity is involved in any particular est rate) 2. QFC market. Purpose of the position (if the purpose consists Trading or hedging (e.g., hedging mortgage Information needed to determine the role of of hedging strategies, include the general servicing or hedging a mortgage pipeline). the QFC in the records entity and the cor- category of the item(s) hedged). porate group’s business strategy. For example, if the purpose of a QFC is to hedge a non-QFC arrangement, the FDIC has the potential for a broken-hedge because the non-QFC arrangement is not subject to the ‘‘all or none’’ QFC transfer and repudiation rule. Issue date ...... 6/31/2010 ...... Information needed to determine the date the entity entered into the agreement. Termination date (date the position terminates 3/31/2014 Overnight Open ...... Information needed to determine when the or is expected to terminate, expire, mature, entity’s rights and obligations regarding the or when final performance is required). position are expected to end. Next call, put, or cancellation date ...... 9/30/2014 ...... Information needed to determine when a call, put, or cancellation may occur with respect to a position. Next payment date ...... 9/30/2014 ...... Information needed to anticipate potential upcoming obligations. Local currency of position (e.g. USD, GBP, USD ...... Information needed to determine currency. EUR, JPY). Current market value of the position in local 995,000 ...... Information needed to determine the current currency (as of the date of the file). size of the obligation/benefit in association with the QFC.

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TABLE A–1—POSITION-LEVEL DATA—Continued [For a records entity]

Field Example Data application

Current market value of the position in USD 995,000 ...... Information needed to determine the current equivalent (as of the date of the file). size of the obligation/benefit in association with the QFC. Notional or principal amount of the position in 1,000,000 ...... Information needed to help evaluate the posi- local currency (as applicable). tion. Notional or principal amount of the position in 1,000,000 ...... Information needed to help evaluate the posi- USD equivalent (as applicable). tion. Documentation status of the position ...... Affirmed, confirmed, or neither affirmed nor Information needed to determine reliability of confirmed. the position and its legal status. Credit support documents (including any secu- Credit Support Annex ...... Information needed to identify and review rity agreement or guarantee) (If more than credit support related to the position, includ- one, delimit each with a comma.). ing any applicable covenants. Name of position or agreement guarantor, if ap- Holdco ...... Information needed to identify entity with po- plicable. tential credit exposure. Unique counterparty identifier of guarantor ...... 888888888 ...... Information needed to identify the guarantor’s exposure to swaps of affiliates. Reference number of guarantee agreement ...... xxxxxx ...... Information needed to be able to connect data on Table A–1 with Table A–2. Unique counterparty identifier of counterparty to 777777777 ...... Information needed to identify counterparty to related inter-affiliate position(s) with other inter-affiliate position that is back-to-back records entity in the corporate group (If more with, or otherwise related to, this position. than one, delimit each with a comma.). Name of counterparty to related inter-affiliate Jane Doe & Co...... Information needed to identify counterparty to position(s) (If more than one, delimit each inter-affiliate position that is back-to-back with a comma.). with, or otherwise related to, this position. Related inter-affiliate position ID(s) ...... Unique position ID(s) for related inter-affiliate Information needed to identify all related posi- position (If more than one, delimit each with tions, i.e., each position with an affiliated a comma.). records entity that is back-to-back with, or otherwise relates to, this position. Reference number for any related loan (If more Unique reference number(s) for loans related Information necessary to identify any loan(s) than one, delimit each with a comma.). to this position. within the corporate group that are related to this position. Legal name of records entity or any affiliate of [Insert legal name of each records entity that Information needed to identify lender. the records entity that is lender of related is lender of related loan]. loan (If more than one, delimit each with a comma.). Classification under GAAP or IFRS ...... Level 1, Level 2, Level 3 ...... Information with respect to carrying value for the position. 1 The unique counterparty identifier shall be based on the global legal entity identifier, but must include additional identifiers in the event one counterparty transacts with the records entity as separate non-U.S. branches or divisions, as appropriate to enable the FDIC to aggregate or disaggregate the data for each counterparty and for the counterparty’s corporate group as necessary to determine the effects of potential QFC transfers or terminations, including the effects of any ring-fencing with regard to any such non-U.S. branch or division. All records entities in an affiliated group must use the same unique counterparty identifier for a specific counterparty. 2 Position ‘‘types’’ shall be used consistently for all records entities within the corporate group. If the OFR adopts or authorizes a unique product identifier for a given type of position/transaction, then within 180 days after such action, the records entity shall substitute such identifier for ‘‘Type of Position,’’ and shall utilize such identifier for purposes of this part for all records entities within its corporate group.

TABLE A–2—COUNTERPARTY COLLATERAL DATA 1 [For positions between a records entity and each counterparty 2]

Field Example Data application

Unique counterparty identifier 3 of records entity 999999999 ...... Information needed to review counterpart- level data by records entity. Unique counterparty identifier of counterparty to 888888888 ...... Information needed to aggregate positions by records entity (non-reporting party). counterparty. Legal name of counterparty ...... John Doe & Co...... Information needed to aggregate positions by counterparty. Industry code (GIC or SIC code) of 2096 ...... Information needed to analyze knock-on ef- counterparty. fects by industry Contact information for counterparty, including xxxxxxxx ...... Information needed to maintain a point of con- name, phone number, and email address. tact with the counterparty for the portfolio. Master Netting Agreement for counterparty’s Yes ...... Information needed to determine how posi- corporate group (Y/N). tions of a records entity can be transferred. Name of each master agreement, master net- ISDA Master Agreement ...... Information needed to identify the agreement. ting agreement or governing documentation related to netting among affiliates in a counterparty’s corporate group 4 (if more than one, list each).

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TABLE A–2—COUNTERPARTY COLLATERAL DATA 1—Continued [For positions between a records entity and each counterparty 2]

Field Example Data application

Unique master agreement, master netting xxxxxx ...... Internal reference number of the master agreement or governing documentation iden- agreement or governing documentation. tifier for agreements related to netting among affiliates in a counterparty’s corporate group (if more than one, list each). Current market value in USD equivalent of all (1,000,000) ...... Information needed to help evaluate the posi- positions, as aggregated and, to the extent tions. permitted under each applicable agreement, netted. Current market value in USD equivalent of all 950,000 ...... Information needed to determine the extent to collateral, if any, posted against all positions which collateral has been provided. of the records entity with the counterparty by collateral provider. Current market value in USD equivalent of all 950,000 ...... Information needed to determine exposure of collateral posted against all positions of the a records entity or other collateral pro- records entity with the counterparty that is vider(s) to the creditworthiness of a subject to re-hypothecation by the counterparty counterparty, if any, by collateral provider. Current market value in USD equivalent of all 50,000 ...... Information needed to determine the extent to collateral, if any, posted against all which collateral has been provided on be- counterparty positions with the records entity half of a counterparty. by collateral provider. Current market value in USD equivalent of all 50,000 ...... Information needed to determine un- collateral posted against all positions of the collateralized liability of records entity to a counterparty with the records entity that is counterparty or other collateral provider(s) subject to re-hypothecation by the records for re-hypothecated collateral entity, if any, by collateral provider. With respect to all collateral posted against the (25,000) ...... Information needed to determine the extent to record entity’s positions, collateral excess or which the records entity has satisfied collat- deficiency (including pending margin calls in eral requirements under each applicable this calculation) in USD equivalent with re- agreement. spect to all of the records entity’s positions, as determined under each applicable agreement, including thresholds and haircuts where applicable.5 With respect to all collateral posted against 150,000 ...... Information needed to determine the extent to each counterparty’s positions collateral ex- which the counterparty has satisfied collat- cess or deficiency (including pending margin eral requirements under each applicable calls in this calculation) in USD equivalent agreement. with respect to all of such counterparty’s positions with the records entity, as determined under each applicable agreement, including thresholds and haircuts where applicable. With respect to all collateral posted against the (50,000) ...... Information needed to determine the extent to records entity’s positions, collateral excess or which the record entity’s obligations regard- deficiency (including pending margin calls in ing the positions may be unsecured. this calculation) in USD equivalent with respect to all the positions, based on the aggregate market value of the positions of a counterparty (after netting to the extent permitted under each applicable agreement) and the aggregate market value of all collateral posted against the records entity’s positions, in whole or in part. Collateral safekeeping agent contact informa- xxxxxxxx ...... Information needed to maintain a point of con- tion, including name, email address, phone tact with the collateral safekeeping agent. number. For each records entity, current market value of Records entity 1, Records entity 2, Information needed to assess both cross bor- all inter-affiliate positions with this records en- Counterparty xxx, aggregate current market der positions as well as transfer links. tity (multiple entries depending on number of value. entities and complexity of inter-company transactions). Risk or relationship manager contact informa- xxxxxxxx ...... Information needed to maintain a point of con- tion, including name, phone number and tact for the counterparty relationship. email address. Master Netting Agreement for records entity’s Yes ...... Information needed to determine how posi- corporate group (Y/N). tions are netted among records entities.

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TABLE A–2—COUNTERPARTY COLLATERAL DATA 1—Continued [For positions between a records entity and each counterparty 2]

Field Example Data application

Name of each master agreement, master net- ISDA Master Agreement ...... Information needed to identify the agreement. ting agreement or governing documentation related to netting among records entities (if more than one, list each). Unique master agreement, master netting xxxxxx ...... Internal reference number of the master agreement or governing documentation iden- agreement or governing documentation. tifier for agreements related to netting among records entities (if more than one, list each). Legal name of master agreement guarantor, if xxxxxx ...... Information needed to determine credit expo- any. sure of the guarantor. Unique counterparty identifier of guarantor ...... xxxxxx ...... Information needed to determine credit exposure of the guarantor. 1 All amounts shall be provided in U.S. Dollar equivalent. For collateral denominated in non-U.S. currency, the value in such non-U.S. currency shall also be provided. 2 Table A–2 shall be provided at the first level of netting under a master agreement. If a master agreement includes Annexes or other provisions that are subject to intermediate netting, each netting set shall be reported separately. The table shall have a separate entry for each netting agreement that is applicable to one or more counterparties in the counterparty corporate group. The FDIC intends to use the data both to determine net positions between each counterparty and a records entity and to determine the records entity’s aggregated position with respect to all affiliates in a counterparty’s corporate group based on the enforceability of the netting agreements. 3 The unique counterparty identifier shall be based on the global legal entity identifier, but must include additional identifiers in the event one counterparty transacts with the records entity as separate non-U.S. branches or divisions, as appropriate to enable the FDIC to aggregate or disaggregate the data for each counterparty and for the counterparty’s corporate group as necessary to determine the effects of potential QFC transfers or terminations, including the effects of any ring-fencing with regard to any such non-U.S. branch or division. All records entities in an affiliated group must use the same unique counterparty identifier for a specific counterparty. 4 If one or more positions cannot be netted against others, they shall be maintained as separate entries and each such entry shall identify the applicable netting agreement, if any, to which it relates (if none, specify ‘‘none’’). 5 If all positions are not secured by the same collateral, then separate entries shall be maintained for each position or set of positions secured by the same collateral and each such entry shall identify the applicable credit support document, if any, to which it relates (if none, specify ‘‘none’’).

TABLE A–3—LEGAL AGREEMENTS [For each QFC agreement or master agreement between a records entity and each counterparty]

Field Example Data application

Name of agreement ...... ISDA Master Agreement ...... Information needed to identify the agreement. Reference Number ...... xxxxxx ...... Internal reference number of the master agreement or governing documentation. Basic form of agreement ...... [1992/2002] version ...... Information needed to identify the basic form of agreement. Agreement governing law ...... [State/Country] ...... Information needed to determine the law governing contract disputes. Cross defaults (Y/N and description of type of Y ...... Information needed to determine exposure to cross default and identity of cross-default en- Insolvency. affiliates or other entities. tity). [parent]. Transfer restrictions (Y/N and description of Y ...... Information needed to determine QFC transfer transfer restriction). Counterparty consent required. limitations per agreement terms. Events of Default/Termination Events added to Y ...... Information needed to determine whether the basic form of agreement (Y/N and brief Counterparty stock price declines by more there are events of default or termination description or excerpts of each). than $xx. events that have been added to those provided in the basic form of agreement and the likelihood of occurrence of event of default. Events of Default/Termination Events deleted Y ...... Information needed to determine if there are from the basic form of agreement (Y/N and Credit event upon merger. any events of default or termination events excerpts of each). of the basic form of agreement that have been removed. Guarantee agreement with respect to records Y ...... Information needed to determine if there is entity obligations (Y/N). credit exposure because of a guaranty. Reference number of guarantee agreement ...... xxxxxxx ...... Internal reference number to enable aggregation of exposures to a guarantor. Legal name of guarantor of records entity obli- xxxxxxx ...... Information needed to identify the guarantor. gations, if any. Unique counterparty identifier of guarantor of xxxxxxx ...... Information needed to identify the guarantor. records entity obligations. Unique counterparty identifier of counterparty to 888888888 ...... Information needed to aggregate information records entity (non-reporting party). by counterparty. Legal name of Counterparty ...... John Doe & Co...... Information needed to aggregate information by counterparty. Industry code (GIC or SIC code) of 2096 ...... Information needed to analyze knock-on ef- counterparty. fects by industry.

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TABLE A–3—LEGAL AGREEMENTS—Continued [For each QFC agreement or master agreement between a records entity and each counterparty]

Field Example Data application

Contact information for counterparty, including ...... Information needed to maintain a point of con- name, phone number, and email address. tact with the counterparty for the portfolio. Guarantee agreement with respect to Y ...... Information needed to determine if there is counterparty obligation (Y/N). guarantor exposure with respect to the counterparty. Reference number of counterparty guarantee xxxxxxx ...... Internal reference number to enable aggrega- agreement. tion of guarantor exposure. Legal name of guarantor of counterparty obliga- xxxxxxx ...... Information needed to determine credit expo- tions, if any. sure of guarantor for counterparty obligations. Unique counterparty identifier of counterparty xxxxxxx ...... Information needed to determine credit expo- guarantor. sure of guarantor for counterparty obligations.

TABLE A–4—COLLATERAL DETAIL DATA [For a records entity with respect to each counterparty, and for each counterparty with respect to a records entity and aggregated for such record entity’s corporate group as well as such counterparty corporate group to the extent required or permitted by any applicable netting agreements]

Field Example Data application

Unique collateral identifier for a collateral item .. CUSIPs ...... Reference required to identify individual collateral posted. Local currency of collateral item (e.g. USD, USD ...... Information needed to determine the type of GBP, EUR, JPY). collateral Original face amount of collateral item in local 1,500,000 ...... Information needed to evaluate collateral suffi- currency. ciency and marketability. Original face amount of collateral item in USD 1,500,000 ...... Information needed to evaluate collateral suffi- equivalent. ciency and marketability and to assist in aggregation across currencies. Current end of day market value amount of col- 850,000 ...... Information needed to evaluate collateral suffi- lateral item in local currency. ciency and marketability. Current end of day market value amount of col- 850,000 ...... Information needed to evaluate collateral suffi- lateral item in USD equivalent. ciency and marketability and to assist in aggregation across currencies. Description of collateral item or items ...... U.S. Treasury Strip, maturity 6/30/2020 ...... Information needed to evaluate collateral sufficiency and marketability. Collateral currency ...... USD ...... Information needed to determine the type of collateral Collateral Code,1 if any, of the collateral that xxxxx ...... Information needed to identify and aggregate the records entity has posted against all posi- collateral. tions with the counterparty. Unique entity identifier of collateral posting enti- 999999999 ...... Information needed to determine the head- ty. quarters or branch where the position is booked. Name of master agreement or governing docu- ISDA Master Agreement ...... Information needed to identify the agreement. mentation. Unique master agreement or governing docu- xxxxxx ...... Internal reference number of the master mentation identifier. agreement or governing documentation. Collateral or portfolio segregation status (Y/N/ Y, segregated with third party custodian spec- Information needed to evaluate the extent of and the scope of such segregation). ified below. segregation of the specific item of collateral or the related collateral portfolio. Credit support documents (including any secu- Credit Support Annex ...... Information needed to identify and review rity agreement) (If applicable, unique credit NA. credit support, including any applicable cov- support document identifier.). enants. Unique counterparty identifier ...... 888888888 ...... Information needed to aggregate positions by counterparty. Legal name of counterparty ...... John Doe & Co...... Information needed to identify counterparty. Collateral location ...... ABC Broker-Dealer (in safekeeping account of Information needed to identify location of col- counterparty). lateral posted. Collateral jurisdiction ...... New York, NY ...... Information needed to identify jurisdiction of location of collateral posted. Is collateral re-hypothecation by the Yes ...... Information needed to evaluate exposure of counterparty allowed (Y/N). the records entity to the counterparty for rehypothecated collateral. Master (cross-product) netting agreement name NA ...... Information needed to determine effects of any cross-product and other master netting agreements (sometimes referred to as ‘‘master master agreements’’).

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TABLE A–4—COLLATERAL DETAIL DATA—Continued [For a records entity with respect to each counterparty, and for each counterparty with respect to a records entity and aggregated for such record entity’s corporate group as well as such counterparty corporate group to the extent required or permitted by any applicable netting agreements]

Field Example Data application

Master (cross-product) netting agreement NA ...... Information needed to determine effects of unique identifier (If applicable, unique master any cross-product and other master netting netting agreement identifier. If not applicable, agreements. enter ‘‘N/A’’). Classification under GAAP (FAS 157) ...... Level 1, Level 2, Level 3 ...... Information with respect to carrying value for the position. 1 CFTC collateral codes and collateral ‘‘types’’ shall be used consistently for collateral posted by a records entity or counterparty, as applicable. If the OFR adopts or authorizes a unique identifier for a given type of collateral, then within 180 days after such action, the records entity shall instead use such identifier as the code for such collateral for purposes of this part and shall utilize such identifier for purposes of this part for all records entities within its corporate group. For repurchase or securities lending agreements, separate collateral tables should be provided that list the type, CUSIP or ISEN number of such securities.

Matthew Rutherford, Acting Under Secretary for Domestic Finance. [FR Doc. 2014–30734 Filed 1–6–15; 8:45 am] BILLING CODE 4810–35–P

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